LTC Properties (NYSE: LTC) is investing $128 million in 12 assisted living communities as part of a joint venture with one of its current operating partners.
Of the $128 million, the Westlake, Calif.-based company spent $117 million to acquire a 97% stake in a joint venture with an operator to purchase 11 properties. I’m here. The remaining approximately $11 million will be used for senior mortgage loans intended to refinance a single property.
Under the joint venture, the community will operate under a 10-year master lease with two renewal options. The operator has the option to purchase up to half of the property at the start of her third lease. The operator will be able to purchase the remainder of the property at the beginning of her fourth year of the lease.
The 12 communities are assisted living or assisted living and memory care communities with a total of 937 beds in 568 units spread throughout North Carolina.
LTC did not identify the operator in its announcement. A representative for the REIT could not be reached for comment.
To fund the investment, LTC sold more than 750,000 shares of its common stock in the fourth quarter of 2022, earning $29 million in proceeds, in addition to the $99 million borrowed under LTC’s credit facility .
The investment comes as the first major move of 2023 by LTC Properties after the real estate investment trust (REIT) has completed its most active year in seven years.
LTC’s total senior housing footprint now totals 216 properties, of which 125 are assisted living communities, with 32 operating partners in 29 states.
North Carolina, which includes one of SHN’s noteworthy markets, is one of LTC’s most active states, with 21 independent assisted living or assisted living/memory care communities, representing the company’s entire senior living portfolio. accounts for 10% of
Overall, the company will invest more than $170 million in 2022, representing its highest level of investment since 2015. Also, LTC Chairman and CEO Wendy Simpson has indicated that the REIT aims to increase investment activity next year.
“We believe LTC investment activity will continue to increase as we become more competitive and bring flexible and creative financing to strong regional operators seeking growth capital at fair rates.” she said in October.
LTC shares closed Friday at $36.01 per share, up 2.16% on the day.
