Business & Finance
Business and Finance
Business and Finance
Tue, March 8, 2011
Mon, March 7, 2011 LTC Announces Agreement to Purchase Four 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 four skilled nursing properties with a total of 524 licensed beds. The properties are located in Texas and the aggregate initial purchase price is $41.0 million. The final acquisition price not to exceed $52.0million is subject to two earn-out payments each contingent upon the properties achieving a sustainable stipulated rent coverage ratio. The first earn-out payment could be up to $4.0million, would be payable on or about October 1, 2011 and is primarily contingent upon the rent coverage ratio subsequent to the impact of Texas Medicaid rates anticipated to be determined in July 2011. The second earn-out payment could be up to $11.0 million, assuming the first earn-out payment was not made, and would be payable between July 2013 and July 2014. The transaction is scheduled to close on or about March 9, 2011. Simultaneous with the purchase, the Company will lease the properties, under a 15-year triple net master lease, to an entity affiliated with the seller. The lease will contain two 5-year renewal options and annual escalations of 2.5% for the first 10 years and annual escalations of 3.0% thereafter. This acquisition will be financed by the use of funds from the Companya™s unsecured line of credit.
"March 7, 2011 Press Release Photos and Proforma Geographic Diversification."
The Company further announced that the projected GAAP revenues provided from the acquisition of these properties for calendar years 2011 and 2012 assuming no earn-out is paid in those years, are $3.6 million and $4.3 million, respectively, which includes non-cash straight-line rent of approximately $0.6 million in 2011 and $0.6 million in 2012.
The Company has posted photos of these new properties and proforma geographic diversification on its website at [ www.LTCProperties.com ] in the aPresentationa section of the aInvestor Informationa tab under the title aMarch 7, 2011 Press Release Photos and Proforma Geographic Diversification.a
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 ].
