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LTC Announces Agreements to Purchase Four Assisted Living Properties

^{Published on 2010-10-18 06:40:26 - Market Wire}
 

WESTLAKE VILLAGE, Calif.--([ BUSINESS WIRE ])--[ LTC Properties, Inc. ] (NYSE:LTC) announced today that it has entered into three purchase agreements to acquire four assisted living properties with a total of 241 units for an aggregate purchase price of $26.9 million. Three of the properties are located in Florida and one is located in Mississippi. The terms of one of the seller's current financing required a 30-day prepayment notice which was given by this seller on September 27, 2010. In addition to the aggregate purchase price identified above, the Company has agreed to pay $0.1 million representing half of this sellera™s prepayment penalty on its loan. The three transactions are scheduled to concurrently close on or about October 29, 2010. Simultaneous with the purchases, the Company will lease the properties under a 10-year triple net master lease with an affiliate of the third party operators that managed or operated the properties under leases with the sellers.

These acquisitions will be financed by the use of funds from the Companya™s unsecured line of credit.

The Company further announced that the projected revenues provided from the acquisition of these properties for calendar year 2010 and 2011 are $0.5 million and $2.9 million, respectively, under GAAP accounting, which includes non-cash straight-line rent of approximately $66,000 and $363,000, respectively, in 2010 and 2011.

The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through mortgage loans, facility lease transactions and other investments. For more information on LTC Properties, Inc., visit the Companya™s website at [ www.ltcproperties.com ].