LTC Announces Acquisition of Two Skilled Nursing Facilities
<0> LTC Properties, Inc.Wendy L. SimpsonPam Kessler(805) 981-8655 </0>
(NYSE: LTC) (“the Company”) 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.
Wendy Simpson, the Company’s CEO and President, commented, “LTC is excited to establish a long-term relationship with Carespring which has been an innovator in the skilled nursing industry in Ohio and Northern Kentucky. This investment expands our real estate portfolio with new, state-of-the-art skilled nursing facilities designed to provide care for medically complex and rehabilitation focused patients. This acquisition is consistent with our strategy of investing in modernized, purpose-built facilities in solid markets with experienced regional operators possessing strong operational records. We are very pleased to have been able to include Carespring in our portfolio.”
The Company has posted photos of these new properties on its website at in the “Presentation” section of the “Investor Information” tab under the title “August 1, 2012 Press Release Photos”.
The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through facility lease transactions, mortgage loans and other investments. For more information on LTC Properties, Inc., visit the Company’s website at .
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 our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and in our 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 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.