WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC), a Westlake Village-based REIT, has sold two skilled nursing centers in New Mexico.
The two centers, totaling 235 beds, were sold for $21.3 million, generating proceeds of $20.8 million. The proceeds will be used to pay down the company’s unsecured revolving line of credit.
LTC anticipates recording a gain on sale of approximately $15 million in first-quarter 2023. As a result of the sale, the two properties were removed from the operator’s master lease, and LTC provided a rent decrease of 7.5 percent of the net proceeds, or approximately $1.5 million of cash rent, to the operator. The centers were built in 1975 and 1985.
“As part of our active asset management program, we identify opportunities to reduce the age of our portfolio and provide us with capital that can be better deployed through new investments or deleveraging our balance sheet,” says Wendy Simpson, LTC’s chairman and CEO. “This sale was in the best interest of LTC and the operator, and we look forward to continue working with them through the four skilled nursing centers and one behavioral hospital they continue to operate under the master lease.”