LTC Completes $200M Senior-Housing Acquisition in Minnesota
On September 2, LTC Properties, Inc. (NYSE:LTC) completed a $200 million acquisition of four senior-housing communities in Minnesota with 453 units across independent living, assisted living, and memory care segments. The properties are operated by Lifespark Senior Living under the Senior Housing Operating Portfolio (SHOP), where LTC shares property results rather than receiving fixed rent. This shift increases exposure to revenue growth but also operating costs. The acquisition was funded partly through a $167 million sale of 13 Texas skilled-nursing facilities, which generated $12.4 million in annualized cash income. The remaining funds came from the company’s revolving credit facility, expected to be repaid by October 1 with proceeds from further asset sales. LTC anticipates an initial cap rate of around 7% and a low-to-mid-teens unlevered IRR. The acquisition is projected to generate $14 million in first-year SHOP NOI—$1.6 million more than the income lost on Texas assets sold—but this gain must offset interest costs from credit facility use until repayment.
Tickers: $LTC
Topics: acquisitions operating exposure REITs senior housing