LTC Originates $52.5 Million Unitranche Loan for Purchase of 13-Property Seniors Housing Portfolio

Rhea-AI Summary

LTC Properties, Inc. (NYSE: LTC) has announced a $52.5 million unitranche loan for the acquisition of a 13-property seniors housing portfolio in North and South Carolina. This financing package includes an additional $6.1 million for capital improvements and $650,000 for working capital, totaling an estimated $60 million investment. The loan carries a 7.25% interest rate with an internal rate of return of 8% and matures in four years. Wendy Simpson, the Chairman and CEO, emphasized LTC's strong balance sheet and successful history in providing financing solutions to regional operators.

Positive

• Originated a $52.5 million unitranche loan for a seniors housing portfolio.
• Total investment commitment of approximately $60 million including additional capital.
• Interest rate of 7.25% with an IRR of 8%, indicating a potentially strong return.
• Demonstrates LTC's ability to adapt to changing investment landscapes.

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, announced today it originated a $52.5 million unitranche loan for the purchase of a 13‑property seniors housing portfolio located in North and South Carolina. The communities will be operated by an existing LTC operator. The loan provides for additional commitments of $6.1 million for capital improvements and $650,000 for working capital, for a total investment commitment of approximately $60 million. The loan bears interest at 7.25% with an IRR of 8% and matures in 4 years.

“Our solid balance sheet and long history of providing creative financing solutions to strong regional operators, has allowed LTC to nimbly adapt to the changing landscape for investments in senior housing,” said Wendy Simpson, LTC’s Chairman and CEO. “On the heels of our recent announcement of $46 million in investments through a variety of loan vehicles, this structured finance investment is another example of our ability to provide operators with the financing they need, when they need it.”

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 owns or holds first mortgages on 190 properties in 27 states with 33 operating partners. Based on LTC’s gross real estate investments, the portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.

Forward Looking Statements

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. Please see LTC’s most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, and its other publicly available filings with the Securities and Exchange Commission for a discussion of these and other 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 LTC 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/20211202005078/en/

Wendy L. Simpson

Pam Kessler

(805) 981-8655

Source: LTC Properties, Inc.

FAQ

What loan did LTC Properties announce?

LTC Properties announced a $52.5 million unitranche loan for a 13-property seniors housing portfolio.

What is LTC's total investment commitment for the new loan?

LTC's total investment commitment for the new loan is approximately $60 million.

What is the interest rate and IRR for LTC's new loan?

The loan bears an interest rate of 7.25% with an internal rate of return of 8%.

Where is the seniors housing portfolio located?

The seniors housing portfolio is located in North and South Carolina.

Who will operate the newly financed seniors housing properties?

The communities will be operated by an existing LTC operator.