WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–LTC Properties, Inc. (NYSE: LTC), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced the acquisition of four LuxeRehab centers for approximately $52 million.
The properties, which are located in Texas and have a combined total of 339 beds primarily in private rooms, will be operated by Ignite Medical Resorts (“Ignite”), a current LTC operating partner. The lease term is 10 years, with two 5-year renewal options, and contains a purchase option beginning at the end of the fifth lease year through the end of the seventh lease year. The Company expects to receive rent of approximately $1.0 million in each of the third and fourth quarters of 2022 and approximately $4.3 million during 2023. Rent will increase annually beginning on the third anniversary of the lease by 2.0% to 4.0% based on the change in the Medicare Market Basket Rate. Additionally, LTC provided Ignite a working capital loan for up to $2.0 million at 8% for first year increasing to 8.25% for the second year then increasing annually with the lease rate. The Company initially funded this acquisition using its unsecured revolving line of credit and intends to use proceeds from previously announced asset sales, anticipated to close in the second quarter of 2022, to pay down its unsecured revolving line of credit.
“Our successful partnership with Ignite has been mutually beneficial, and we are excited to expand our relationship with them through the purchase of these four newer assets that reduce the average age of LTC’s portfolio. Ignite is known throughout the industry for its premier centers that focus heavily on successful clinical outcomes, coupled with top-notch hospitality and patient care,” said Wendy Simpson, LTC’s Chairman and CEO. “We are deeply focused on growth this year, and plan to utilize our creativity and flexibility to identify new investment opportunities, from sale-leasebacks to structured finance deals, while attracting solid regional operators with whom we can grow.”
“We are thrilled to continue to expand our partnership with LTC,” said Tim Fields, Ignite’s Co Founder and CEO. “We look forward to bringing LuxeRehab to the great state of Texas and to serve the San Antonio, Austin, Fort Worth and Houston communities.”
About LTC Properties
LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions, including preferred equity and mezzanine lending. LTC’s investment portfolio includes 202 properties in 29 states with 36 operating partners consisting of real property investments, first mortgages, mezzanine loans, working capital notes and unconsolidated joint ventures. Based on its gross investments, LTC’s investment portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.
About Ignite Medical Resorts
Ignite Medical Resorts operates 14 locations in Illinois, Missouri, Kansas, Oklahoma, Wisconsin and Texas. The organization’s model of LuxeRehab™ combines uncompromising luxury and rapid rehabilitation, coupling the amenities and décor of a fine hotel with clinical programming for orthopedics, stroke, cardiac and respiratory care to return guests back home as quickly as possible. Learn more at IgniteMedicalResorts.com.