LTC Provides Update on Thrive Portfolio
June 10 2019 - 4:00PM
Business Wire
-- Two Properties Transitioned to New LTC
Relationship; Three Properties Transitioning to Current Operating
Partner; Remaining Property Being Actively Marketed for Sale --
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 Living.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190610005696/en/
Wendy L. SimpsonPam Kessler(805) 981-8655
LTC Properties (NYSE:LTC)
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