LTC Completes Divestiture of Preferred Care Portfolio Ahead of Schedule
April 02 2020 - 9:30AM
Business Wire
-- Portfolio Sale Totals $78 Million --
LTC Properties Inc. (NYSE: LTC), a real estate investment trust
investing in seniors housing and health care properties, today
announced the completion of the sale of its Preferred Care, Inc.
portfolio. LTC previously communicated that it anticipated
concluding the sale during the second quarter of 2020 but finalized
the transactions ahead of schedule.
The combined net proceeds for the portfolio, including one
property sold in 2019 and 21 properties sold in the first quarter
of 2020, was $77.9 million, resulting in a total estimated gain on
sale of $44.0 million. The portfolio had a combined net book value
of $35.6 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. These 21 properties had a
combined net book value of $29.1 million and are expected to result
in an estimated gain on sale of $43.9 million in the first quarter
of 2020.
“We enjoyed a long, profitable and amicable relationship with
Preferred Care, and wish them much success with their newly
reorganized company. We greatly appreciate their cooperation
throughout their arduous bankruptcy and through this sales
process,” said Wendy Simpson, LTC’s CEO and President. “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.”
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 180 investments in 27 states with 29 operating
partners. The portfolio is comprised of investments of
approximately 50% seniors housing and 50% skilled nursing. Learn
more at www.LTCreit.com. To read LTC’s latest statement on
COVID-19, please click here.
Forward-Looking Statements
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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Wendy Simpson Pam Kessler (805) 981-8655
LTC Properties (NYSE:LTC)
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