LTC Sells 22 Preferred Care Skilled Nursing Facilities for $77.9M

by Jeff Shaw

WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC), a Westlake Village-based REIT that invests in seniors housing and healthcare properties, has completed the sale of its entire portfolio of Preferred Care-operated properties.

Preferred Care declared bankruptcy in 2017 amid a slew of personal injury lawsuits against the operator.

The combined net proceeds for the portfolio, including one property sold in 2019 and 21 properties sold in the first quarter of 2020, were $77.9 million, resulting in a total estimated gain on sale of $44 million.

The 21 properties sold in the first quarter of 2020, which included more than 2,500 beds across Arizona, Colorado, Iowa, Kansas and Texas, were sold through multiple transactions and generated net proceeds of $71.9 million.

“We enjoyed a long, profitable and amicable relationship with Preferred Care, and wish them much success with their newly reorganized company,” says Wendy Simpson, LTC’s CEO and president. “We greatly appreciate their cooperation throughout their arduous bankruptcy and through this sales process. These proceeds provide LTC with increased liquidity, and allow us to pursue opportunities for future growth, even in the midst of a particularly challenging environment.”

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