LTC Originates $25 Million Mezzanine Loan for Recapitalization of Five-Property Seniors Housing Portfolio

Rhea-AI Summary

LTC Properties, Inc. (NYSE: LTC) has announced a $25 million mezzanine loan to recapitalize a five-property seniors housing portfolio located in Oregon and Montana. The loan features an 8% interest rate and a term of five years with two one-year extension options, yielding an internal rate of return (IRR) of 11%. This investment aligns with LTC's strategy to foster growth and strengthen ties with regional operators, enhancing its portfolio of 198 properties across 29 states.

Positive

• Originated a $25 million mezzanine loan enhancing capital structure.
• Investment supports a portfolio of five senior housing communities.
• Loan offers a robust IRR of 11% with a competitive interest rate of 8%.
• Expands partnerships with regional operators, diversifying investment opportunities.

Negative

• None.

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005432/en/

Wendy Simpson

Pam Kessler

(805) 981-8655

Source: LTC Properties, Inc.

FAQ

What is the amount of the loan originated by LTC Properties in February 2022?

LTC Properties announced a $25 million mezzanine loan.

What is the interest rate on LTC Properties' new mezzanine loan?

The mezzanine loan has an interest rate of 8%.

In which states are the properties associated with the LTC loan located?

The properties are located in Oregon and Montana.

What is the term length of the mezzanine loan issued by LTC Properties?

The loan has a term of five years and two months, with two one-year extension options.

What is the expected internal rate of return (IRR) on the new loan from LTC Properties?

The loan is expected to yield an IRR of 11%.