WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--LTC Properties, Inc. (NYSE: LTC) a real estate investment trust investing in seniors housing and care, today announced it acquired a post-acute skilled nursing center plus a land parcel to develop a similar product in the Kansas City metro area. The centers will be operated by Ignite Medical Resorts (Ignite), an operator new to LTC.
LTC acquired a 90-bed post-acute skilled nursing center built in 2018 in Kansas City, Missouri for $19.5 million. The lease term is 12 years at an initial cash yield of 8.3%, escalating 2% annually, and two five-year renewals. The center averages 90% occupancy and generates more than $1.0 million in monthly revenue.
LTC also acquired a parcel of land and committed to develop a 90-bed post-acute skilled nursing center in Independence, Missouri. The commitment totals $17.4 million. Upon certificate of occupancy and licensure, the center will have a 12-year lease at an initial cash yield of 9.3%, escalating 2% annually, and two five-year renewals. Completion is scheduled for the fall of 2020. Avenue Development, a full-service development company focused on healthcare and senior living, is managing the project.
“These acquisitions represent our positive outlook on the next generation of post-acute skilled nursing,” said Wendy Simpson, LTC’s CEO and President. “We are optimistic about our new partnership with Ignite and their innovative approach to rapid rehabilitation in a resort-style setting. We are also very pleased to continue working with Avenue Development, with whom we have a long-standing relationship and are thankful they introduced us to Ignite.”
“We are excited to partner with LTC on our Kansas City projects,” says Tim Fields, Ignite’s Co‑Founder and CEO. “And we look forward to growing with them on future opportunities.”
About Ignite Medical Resorts
Ignite Medical Resorts provide a combination of luxury and rapid rehabilitation with the amenities of a fine resort. Clinical specialties include Orthopedic Rehabilitation, Cardiac Care, Pulmonary Rehabilitation, and Stroke Recovery. Learn more at www.ignitemedicalresorts.com.
About LTC Properties
LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC holds more than 200 investments in 28 states with 30 operating partners. The portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more 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 involve a number of risks and uncertainties. Please see LTC’s most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, and its 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 LTC 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.