LTC Invests $33 Million in Acquisitions
January 21 2020 - 9:30AM
Business Wire
-- Adds Two Regional Operating Partners --
LTC Properties Inc. (NYSE: LTC), a real estate investment trust
investing in seniors housing and care, today announced it has
acquired two Michigan seniors housing communities and one Texas
skilled nursing center. The Michigan communities will be operated
by Randall Residence, and the Texas center will be operated by HMG
Healthcare. Both regional operators are new to LTC.
Randall Residence – Michigan
- Acquired two properties, located in Auburn Hills and Sterling
Heights, for $19 million, with an additional capital improvement
investment of approximately $2 million in the first year of the
lease
- 156 total assisted living and memory care units
- 10-year triple net master lease, escalating 2% annually
starting in the second year of the lease, with four, five-year
renewal options
- Initial cash yield of 7.4%
“We are enthusiastic about this new partnership with LTC as we
continue to expand our presence in the markets we know so well,”
said Christopher Randall, CEO of Randall Residence. “Providing
individualized quality care to seniors is our life’s work, and as
we continue to grow, we look forward to offering more families a
safe and nurturing atmosphere.”
HMG Healthcare – Texas
- Acquired one property, located in Longview, for $13.5
million
- Skilled nursing center with 140 licensed beds
- 10-year triple net master lease, escalating 2% annually
starting in the second year of the lease, with two, five-year
renewal options
- Initial cash yield of 8.5%
“My relationship with LTC spans more than a decade, and I am
excited to re-engage with them as a partner in growth,” said
Laurence Daspit, Principal of HMG Healthcare. ”Our new partnership
will support HMG Healthcare’s mission of delivering premier
healthcare services, through dedicated and compassionate employees,
to accommodate the individual needs of our residents.”
“We remain committed to partnering with strong regional
operators that are demonstrating executable and targeted growth
plans, and Randall Residence and HMG Healthcare embody these
characteristics,” said Wendy Simpson, LTC’s CEO and President. “We
have been cultivating these relationships for some time, and have
confidence in their ability to perform well by focusing on
residents and best-in-class operations. These partnerships provide
a pathway for growth for all of us.”
About Randall Residence
Established in 1975, Michigan-based Randall Residence is a
family business focused on creating and enriching, remarkable
senior living experience for its residents. Randall Residence
currently operates 13 independent living, assisted living and
memory care communities in Michigan, Ohio and Illinois.
About HMG Healthcare
Established in 2012, HMG Healthcare’s mission is to deliver
premier healthcare services, through dedicated and compassionate
employees accommodating individualized care needs. HMG Healthcare
currently owns and/or operates 28 senior housing and care
properties in Texas and Kansas.
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 30 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. Please see LTC’s most recent
Annual Report on Form 10-K, its subsequent Quarterly Reports on
Form 10-Q, and its other publicly available filings with the
Securities and Exchange Commission for a discussion of these and
other 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 LTC 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/20200121005304/en/
Wendy L. Simpson Pam Kessler (805) 981-8655
LTC Properties (NYSE:LTC)
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