LTC Announces Acquisition of Two Skilled Nursing Facilities for $54M
LTC Properties, Inc. (NYSE: LTC) announced today that it acquired two skilled nursing facilities with a total of 288 licensed beds for $54.0 million. One property located in Cincinnati, Ohio was built in 2009 and the other property, located in Dayton, Ohio, was built in 2010. The acquisition was funded from the Company's unsecured revolving line of credit and cash on hand. Simultaneous with the purchase, the Company entered into to a master lease with affiliates of Carespring Health Care Management, LLC (“Carespring”) at an initial cash yield of 8.5% and an estimated GAAP yield of 10.1%. The initial term of the lease is 15 years with two 5-year renewal options and annual rent escalations of the lesser of i) 2.25% for the first seven years and 2.50% for the remainder of the term or ii) a calculation based on the consumer price index.
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