LTC Completes $62 Million Joint Venture Investment for Purchase of Three Skilled Nursing Centers
September 12 2022 - 9:30AM
Business Wire
-- Centers Operated by Partner New to LTC
--
LTC Properties, Inc. (NYSE: LTC), a real estate
investment trust that primarily invests in seniors housing and
health care properties, today announced a joint venture investment
for the purchase of three skilled nursing centers, operated by a
partner new to LTC. LTC will be the majority owner with a $62
million contribution to the joint venture.
The three skilled nursing centers are located in northern
Florida, were constructed between 2018 and 2021, have a combined
299 licensed beds primarily in private rooms, and are operated by
PruittHealth, Inc. The centers will be operated under a 10-year
master lease, with two five-year renewal options, with an affiliate
of PruittHealth. LTC expects to receive net rent of approximately
$777,000 during the second half of 2022, and approximately $4.6
million during 2023.
“This investment allows us to partner with a strong regional
operator that has considerable seniors housing and care expertise.
With more than 50 years of history, a large footprint in the
southeastern United States, and a charitable foundation aimed at
enriching the lives employees and those in communities served by
PruittHealth, this is exactly the type of operator with whom we
want to grow,” said Wendy Simpson, LTC’s Chairman and CEO. “In
addition to working with a respected operator who is new to us,
this investment provides LTC with majority ownership of newer
skilled nursing centers. Including this transaction, we have
invested more than $170 million year-to-date, and remain focused on
continuing to identify new opportunities across a variety of
financing vehicles, including structured finance products such as
unitranche loans, mezzanine loans, and preferred equity
investments, as well as accretive triple net lease structures.”
“We are excited to partner with LTC on this new venture for
PruittHealth. As we face the economic realities of inflation and
increased wages, we must continue to find innovative solutions to
provide seamless and superior post-acute care. We are thrilled LTC
shares this vision to deliver high-quality care to the communities
we serve together,” said Neil L. Pruitt, Jr., Chairman and CEO of
PruittHealth. “Operating since 1969, we have developed a successful
network of health care services to allow our patients to receive
the care they need within the same family of providers. We look
forward to continuing to utilize best practices to ensure our
patients receive the care they deserve, delivered with compassion
and professionalism.”
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 205 properties in 29 states
with 33 operating partners. Based on its gross real estate
investments, LTC’s investment portfolio is comprised of
approximately 50% seniors housing and 50% skilled nursing
properties. Learn more at www.LTCreit.com.
About PruittHealth
A family-owned organization for more than 50 years, PruittHealth
provides a seamless network of post-acute care services and
resources, offering skilled nursing care, home health care,
end-of-life hospice care, therapy services, as well as pharmacy and
infusion services across the Southeast. Its 13,000 employed
partners serve approximately 24,000 patients daily in more than 180
locations in Florida, Georgia, North Carolina, and South Carolina.
For more information about the PruittHealth commitment to caring,
visit www.pruitthealth.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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Mandi Hogan (805) 981-8655
LTC Properties (NYSE:LTC)
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