WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC ), a REIT that primarily invests in seniors housing and healthcare properties, has announced plans to diversify its portfolio through the transition and possible sale of some of the properties in its Brookdale Senior Living (NYSE: BKD) portfolio, following Brookdale’s election not to exercise its lease renewal option.
Brookdale is contractually obligated to pay rent on the portfolio of 35 assisted living communities across eight states through the end of the lease term on Dec. 31, 2023. The portfolio represents 8.4 percent of LTC’s pro forma annualized contractual cash rent, and 8.2 percent of pro forma annualized GAAP rent.
LTC has funded approximately $7 million in capital improvements in the properties over the last two years.
“Our relationship with Brookdale has been one of mutual respect and support, and we wish them well,” says Wendy Simpson, LTC’s chairman and CEO. “Through LTC’s active asset management program, and as lease renewals approach, we are prepared, and have contingency plans as we have previously disclosed. We believe LTC is in an excellent position to reduce operator concentration through diversification, and look forward to working with strong regional operators to drive long-term growth and success for us and for them.”
As of the American Seniors Housing Association’s Jun 1, 2022 numbers, LTC is the 35th largest owner of seniors housing in the United States with a portfolio of 98 communities totaling 5,447 units. Brookdale remains the largest operator in the country, with 668 properties totaling 55,581 units.