Business & Finance
Business and Finance
Business and Finance
Tue, November 2, 2010 LTC Announces Agreement to Purchase Two Skilled Nursing Properties
WESTLAKE VILLAGE, Calif.--([ BUSINESS WIRE ])--[ LTC Properties, Inc. ] (NYSE:LTC) announced today that it has entered into a purchase agreement to acquire two skilled nursing properties located in Texas with a total of 292 licensed beds for an aggregate purchase price of $28.5million. One of the properties was constructed in 2009 as a replacement property and opened approximately 12 months ago. The other property was originally constructed in 1988 and has a 50-bed addition focusing on rehabilitation care of short-term stay patients which was completed in 2004. The transaction is scheduled to close on or about November 30, 2010. Simultaneous with the purchase, the Company will lease the properties, under a 15-year triple net master lease, to Senior Care Centers, LLC based in Dallas, TX, an unrelated third-party operator. The lease will contain two 5-year renewal options and annual escalations of 2.5% for the first 10 years and 3% for the remaining term including renewal periods. This acquisition 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 years 2010 and 2011 are $251,000 and $2,917,000, respectively, in accordance with GAAP, which includes non-cash straight-line rent of approximately $42,000 and $485,000, 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 ].
