WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC), a Westlake Village-based REIT that invests in seniors housing and healthcare properties, has completed its previously announced process involving its 35-property Brookdale Senior Living portfolio.
Through the process, 17 communities across four states including Colorado (six), Texas (six), Kansas (four) and Ohio (one) with a total of 738 units, were re-leased to Brookdale. The new master lease, which commenced in January 2024, is for six years at an initial annual rent of $9.3 million.
Five communities in Oklahoma, with a total of 184 units, were transferred and are now operated by Oxford Senior Living, an existing LTC operator. The new master lease, which commenced in November 2023, is for three years, with one four-year extension, at an initial annual rent of $960,000.
Five communities in North Carolina, with a total of 210 units, were transferred and are now operated by Navion Senior Solutions, an operator new to LTC. The master lease, which commenced in January 2024, is for six years at an initial annual rent of $3.3 million.
Eight communities across three states including Florida (four), South Carolina (three), and Oklahoma (one), with a total of 341 units, were sold for $28 million. LTC received proceeds of $23.2 million, after transaction costs and seller financing, and anticipates recording a gain of $17 million related to the sales. LTC provided seller financing collateralized by two of the Florida properties, with a total of 92 units. The $4 million seller-financed mortgage loan term is two years, with a one-year extension, at an interest rate of 8.75 percent.
The transactions reduce LTC’s revenue concentration from Brookdale by 40 percent.