LTC Acquires Four-Property Portfolio for $52 Million
April 04 2022 - 6:00AM
Business Wire
Expands Relationship with Ignite Medical
Resorts
LTC Properties, Inc. (NYSE: LTC), a real estate
investment trust that primarily invests in seniors housing and
health care properties, today announced the acquisition of four
LuxeRehab centers for approximately $52 million.
The properties, which are located in Texas and have a combined
total of 339 beds primarily in private rooms, will be operated by
Ignite Medical Resorts (“Ignite”), a current LTC operating partner.
The lease term is 10 years, with two 5-year renewal options, and
contains a purchase option beginning at the end of the fifth lease
year through the end of the seventh lease year. The Company expects
to receive rent of approximately $1.0 million in each of the third
and fourth quarters of 2022 and approximately $4.3 million during
2023. Rent will increase annually beginning on the third
anniversary of the lease by 2.0% to 4.0% based on the change in the
Medicare Market Basket Rate. Additionally, LTC provided Ignite a
working capital loan for up to $2.0 million at 8% for first year
increasing to 8.25% for the second year then increasing annually
with the lease rate. The Company initially funded this acquisition
using its unsecured revolving line of credit and intends to use
proceeds from previously announced asset sales, anticipated to
close in the second quarter of 2022, to pay down its unsecured
revolving line of credit.
“Our successful partnership with Ignite has been mutually
beneficial, and we are excited to expand our relationship with them
through the purchase of these four newer assets that reduce the
average age of LTC’s portfolio. Ignite is known throughout the
industry for its premier centers that focus heavily on successful
clinical outcomes, coupled with top-notch hospitality and patient
care,” said Wendy Simpson, LTC’s Chairman and CEO. “We are deeply
focused on growth this year, and plan to utilize our creativity and
flexibility to identify new investment opportunities, from
sale-leasebacks to structured finance deals, while attracting solid
regional operators with whom we can grow.”
“We are thrilled to continue to expand our partnership with
LTC,” said Tim Fields, Ignite’s Co Founder and CEO. “We look
forward to bringing LuxeRehab to the great state of Texas and to
serve the San Antonio, Austin, Fort Worth and Houston
communities.”
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 202 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.
About Ignite Medical Resorts Ignite Medical Resorts
operates 14 locations in Illinois, Missouri, Kansas, Oklahoma,
Wisconsin and Texas. The organization’s model of LuxeRehab™
combines uncompromising luxury and rapid rehabilitation, coupling
the amenities and décor of a fine hotel with clinical programming
for orthopedics, stroke, cardiac and respiratory care to return
guests back home as quickly as possible. Learn more at
IgniteMedicalResorts.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/20220404005256/en/
Wendy L. Simpson Pam Kessler (805) 981-8655
LTC Properties (NYSE:LTC)
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