LTC Drops $200M on Four Minnesota Senior Living Communities
LTC sits 22% above its 52-week low of $33.639.
Summary
LTC Properties announced a $200 million acquisition of four senior living communities in Minnesota, adding 453 units to its SHOP portfolio. The deal is funded largely by the $167 million sale of 13 Texas skilled nursing centers, with the remainder from the revolver expected to be repaid by October 1. The new assets carry a 7% year-one cap rate and low- to mid-teens unlevered IRR, and Lifespark Senior Living, an existing operator, takes over management. This brings year-to-date acquisitions to nearly $580 million, with another $120 million expected by end of September, accelerating the SHOP transformation that now represents 38% of annualized NOI. The transaction follows the $500M ATM program launched in August and the $300M credit facility expansion in June, showing continued aggressive portfolio repositioning. Watch for the expected $120 million in additional acquisitions by September 30 and the October 1 revolver repayment.
At the time of this announcement, LTC was trading at $41.03 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.2B. The 52-week trading range was $33.64 to $43.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: BusinessWire.