LTC Originates $25 Million Mezzanine Loan for Recapitalization of Five-Property Seniors Housing Portfolio
February 24 2022 - 9:30AM
Business Wire
LTC Properties, Inc. (NYSE: LTC), a real estate investment trust
that primarily invests in seniors housing and health care
properties, today announced it has originated a $25 million
mezzanine loan for the recapitalization of a five property seniors
housing portfolio. The investment was previously discussed in LTC’s
2021 fourth quarter investor conference call on February 18.
The mezzanine loan has a term of five years and two months, with
two one-year extension options. It bears interest at 8%, with an
IRR of 11%.
Located in Oregon and Montana, the five communities, which
include independent living, assisted‑living and memory care, and
total 621 units, will be managed by The Springs Living, LLC, an
operator new to LTC.
“Closing this solid investment within the first seven weeks of
2022 after a very productive 2021 fourth quarter, demonstrates that
LTC is successfully executing its strategy to produce growth for
our shareholders,” said Wendy Simpson, LTC’s Chairman and CEO. “Our
current focus on structured finance products has served us well, as
we’ve been able to participate in financing premier communities,
such as those underlying this most recent investment, and build
relationships with strong, regional operators with whom we might
not otherwise be able to generate business. We will continue to
identify a wide array of investment opportunities by providing
creative, flexible financing solutions to the right operators, for
the right properties at the right time.”
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’s investment portfolio includes 198 properties in 29
states with 36 operating partners consisting of real property
investments, first mortgages, mezzanine loans, working capital
notes and unconsolidated joint ventures. Based on its gross
investments, LTC’s investment 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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Wendy Simpson Pam Kessler (805) 981-8655
LTC Properties (NYSE:LTC)
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