LTC Closes $61.5 Million in New Investments; Transitions Eight-Property Portfolio

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”) a real estate investment trust that primarily invests in seniors housing and health care properties, today announced it has invested a total of $61.5 million in two transactions, and completed the previously disclosed transition of a portfolio of eight assisted living communities to an existing LTC operator.

The investments include LTC’s $45.0 million investment in a $54.1 million joint venture acquisition of a seniors housing campus, and a $16.5 million investment in a skilled nursing center, as follows:

Joint Venture: $45.0 million joint venture investment for the purchase of an independent living, assisted living and memory care campus in Ohio. The campus was built between 2019 and 2022, includes a total of 242 units, and is now operated by current LTC partner, Encore Senior Living (“Encore”). Additionally, the transaction includes a $2.1 million lease incentive. The lease term is 10 years at an initial yield of 8.25%, and includes a purchase option for the seller during the third and fourth lease years, with an exit IRR of 9.75%. Rent is expected to be approximately $3.9 million per year.

Senior Loan: $16.5 million senior loan origination for the purchase of a skilled nursing center in Illinois. The center, which was built in 2010 and extensively renovated in 2021, is licensed for 150 beds and is now operated by current LTC partner, Ignite Medical Resorts. The loan term is five years at an interest rate of 8.75%.

Transitioned Portfolio: As previously detailed in the Company’s 2023 first quarter earnings conference call, LTC transitioned a portfolio of eight assisted living communities with 500 units in Illinois, Ohio and Michigan to Encore. LTC had been providing assistance to the former operator of this portfolio and as part of the transition, LTC received repayment of approximately $1.3 million of deferred rent previously not recorded. Cash rent under the two-year lease is based on mutually agreed upon fair market rent beginning in month four of the lease.

“LTC has been very active this year, investing more than $240 million year-to-date, our largest investment year since 2015, and transitioning challenged properties to strengthen our portfolio,” said Wendy Simpson, LTC’s Chairman and CEO. “Making incremental investments with existing partners allows us to work with growth-minded operators who we know and respect, while investing in newer assets allows us to further reduce the average age of our portfolio. These efforts should serve us well over the long-term as we work to reinforce LTC’s position as a REIT partner of choice for the seniors housing and care market.”

About LTC

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’s investment portfolio includes 212 properties in 29 states with 31 operating partners. Based on its gross real estate investments, LTC’s investment 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.