WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--LTC Properties, Inc. (NYSE:LTC), a real estate investment trust that primarily invests in seniors housing and health care properties, announced today that it has acquired a 48-unit, private-pay memory care community in Castle Rock, Colorado for $9.8 million.
The property, constructed in 2012 and serving the greater Denver area is leased to an affiliate of Senior Lifestyle Corporation (SLC) under an existing 15-year master lease. The initial cash yield is 6.5%, with rent increases of 3.0% on the first and second anniversary of the acquisition closing, and 2.75% annually thereafter. On January 1, 2015, LTC will further expand its relationship with SLC by adding 13 assisted living communities, comprising 500 units, to the SLC master lease. These communities are currently co-leased to Enlivant and affiliates of Extendicare under leases that expire at the end of December 2014.
“This acquisition underscores LTC’s interest in the growing memory care market, as well as our continued focus on increasing private pay revenue, and reducing the average age of our portfolio,” said Wendy Simpson, LTC’s Chairman and Chief Executive Officer. “Senior Lifestyle has been a great partner, so we are excited to expand our relationship with them to include the Castle Rock community, which will greatly benefit from SLC’s long-standing tradition of providing comprehensive and innovative memory care services.”
“In our continuing quest to provide the best memory care services, each of our communities has a unique identity, where residents’ individualized interests and passions are cultivated,” said Jon DeLuca, CEO and President, of SLC. “We are especially proud of our award-winning ‘Walk with Me’ program, which takes a personal and well-rounded approach to easing the transition for families and residents with memory loss, by creating strong connections among residents, caregivers and families.”
About Senior Lifestyle Corporation
Senior Lifestyle Corporation, founded in 1985, is a privately held owner, operator and developer of seniors housing communities. With a portfolio of more than 170 communities, located throughout 27 states, Senior Lifestyle specializes in independent living, assisted living, memory care and skilled nursing for the luxury, moderate and affordable segments. Senior Lifestyle has been routinely recognized as a leader in the delivery of innovative programs and hospitality services for all levels of care. To learn more please visit us at www.seniorlifestyle.com.
About LTC Properties
LTC is a self-administered real estate investment trust that primarily invests in seniors housing and health care properties through triple-net lease transactions, mortgage loans and other investments. For more information about LTC, visit the Company’s website at www.LTCreit.com.
Forward Looking Statements
This press release includes statements that are not purely historical and are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward looking statements. These forward looking statements, including, but not limited to, LTC’s ongoing emphasis on the growing memory care market, focus on increasing its private pay revenue, and commitment to acquiring newer properties to further reduce the average age of its portfolio, involve a number of risks and uncertainties. Please see the most recent Annual Report on Form 10-K, the subsequent Quarterly Reports on Form 10-Q, and other publicly available filings with the Securities and Exchange Commission for a discussion of these and other risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such forward looking statements. Although the Company’s management believes that the assumptions and expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward looking statements due to the risks and uncertainties of such statements.