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LTC Completes $62 Million Joint Venture Investment for Purchase of Three Skilled Nursing Centers
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
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Rhea-AI Summary
LTC Properties, Inc. (NYSE: LTC) has announced a joint venture to acquire three skilled nursing centers in northern Florida, contributing $62 million. The centers, constructed between 2018 and 2021, feature 299 licensed beds and will operate under a 10-year master lease with PruittHealth, Inc. LTC expects net rent of $777,000 in the latter half of 2022 and $4.6 million in 2023. This investment raises LTC's total investments to over $170 million in 2022, focusing on expanding their portfolio in seniors housing and healthcare.
Positive
LTC is investing $62 million for majority ownership of newer skilled nursing centers.
Projected net rent of $4.6 million in 2023 enhances LTC's revenue outlook.
Partnership with a reputable operator, PruittHealth, expands LTC's operational capacity.
Negative
None.
-- Centers Operated by Partner New to LTC --
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--
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.
