— Two Properties Transitioned to New LTC Relationship; Three
Properties Transitioning to Current Operating Partner; Remaining
Property Being Actively Marketed for Sale —
WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–LTC Properties, Inc. (NYSE:LTC), a real estate investment trust that
primarily invests in seniors housing and health care properties, today
announced an update on its six-property portfolio with Thrive Senior
Two properties were transitioned on June 1 and are being operated by
Trilogy Management Services (TMS), a new relationship for LTC. Combined,
the properties include 120 memory care units in Louisville, Kentucky and
West Chester, Ohio. The two properties are under a 10-year master lease
with initial annual cash rent of $1,250,000 in year one, $1,500,000 in
year two, $1,975,000 in year three and $2,150,000 in year four. Rent may
increase subject to a contingent escalation formula commencing in year
five and annually thereafter. TMS is based in Louisville and currently
manages more than 100 seniors housing and health care communities
throughout the Midwest.
Three properties are being transitioned to LTC’s current operating
partner, Veritas Healthcare Group. In total, the three properties
include 215 assisted living and memory care units. The property located
in Corpus Christi, Texas was transitioned on June 1 and added to an
existing master lease with an affiliate of Veritas. Annual cash rent
under the existing Veritas master lease increased by $400,000 effective
on June 1 and will increase by an additional $300,000 on June 1, 2020.
Beginning on June 1, 2021 the $700,000 of increased annual cash rent
attributable to the Corpus Christi property will increase by 2.50% and
annually thereafter. Additionally, LTC will be entitled to incremental
rent calculated as a percentage of increases in gross revenues generated
by the Corpus Christi community above an established threshold.
Subject to regulatory approval, which is expected on or about July 1,
Veritas will commence operating the remaining two properties located in
Athens, Georgia and Murrells Inlet, South Carolina. The Athens and
Murrells Inlet properties will also be leased to an affiliate of Veritas
in a separate master lease with a two-year term. The initial annual cash
rent will be $1,762,000 and will increase by 3.50% in year two. Veritas
is based in South Haven, Mississippi and will operate 21 seniors housing
communities throughout the South, including 13 owned by LTC once the
transition of all three properties is complete.
The remaining Thrive-operated property in Jacksonville, Florida is being
actively marketed for sale.
“After identifying certain challenges related to the Thrive portfolio,
we took decisive action to find a solution in the best interest of LTC
and our shareholders. We have made considerable progress by leasing the
majority of the properties to excellent regional operators, while
actively marketing the remaining property,” said Wendy Simpson, LTC’s
CEO and President. “We are thrilled to add Trilogy, a well-known and
highly respected regional operator, as our newest relationship and to
grow our successful partnership with Veritas, who has been an operating
partner of LTC since 2014.”
About LTC Properties
LTC is a real estate investment trust (REIT) investing in seniors
housing and health care properties primarily through sale-leasebacks,
mortgage financing, joint-ventures and structured finance solutions
including preferred equity and mezzanine lending. LTC holds more than
200 investments in 28 states with 29 operating partners. The portfolio
is comprised of approximately 50% seniors housing and 50% skilled
nursing properties. Learn more at www.LTCreit.com.
This press release includes statements that are not purely historical
and are “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements
regarding the Company’s expectations, beliefs, intentions or strategies
regarding the future. All statements other than historical facts
contained in this press release are forward looking statements. These
forward-looking statements involve a number of risks and uncertainties.
All forward looking statements included in this press release are based
on information available to the Company on the date hereof, and the
Company assumes no obligation to update such forward looking statements.
Although the Company’s management believes that the assumptions and
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove
to have been correct. The actual results achieved by the Company may
differ materially from any forward-looking statements due to the risks
and uncertainties of such statements.
Wendy L. Simpson