LTC Properties, Inc. LTC disclosed the acquisition of two skilled nursing centers in Texas for $23.0 million. The move would not only help improve the company’s portfolio quality but also enhance its ties with Senior Care Centers, LLC, which is a key and long-standing operating partner of the company.
This is because the properties, with a total of 254 licensed beds, would be added to an existing master lease with Senior Care Centers at an incremental initial cash yield of 8.25%. Also, rent will increase 2.5% annually through Jul 2021 and 3% thereafter.
Note that skilled nursing facilities offer restorative, rehabilitative and nursing care for people who do not require the more sophisticated and extensive treatment offered by acute care hospitals.
Importantly, LTC Properties has been focused on leveraging on the growth potential of the seniors housing and health care real estate market for a quite some time now. Over the last five years, the company has made gross investments of around $140 million in Senior Care. Such investments have helped the company grow its business, and improve portfolio quality and average age of its property group.
LTC Properties mainly focuses on investing in senior housing and health care properties through triple-net lease deals, mortgage loans and other investments. The latest acquisition is expected to act as a growth driver for the company, going forward.
LTC Properties currently has a Zacks Rank #2 (Buy).
Investors interested in the REIT industry may consider other stocks like Medical Properties Trust Inc. MPW, National Health Investors Inc. NHI and Omega Healthcare Investors Inc. OHI. All three stocks carry the same Zacks rank as LTC Properties.
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