Westlake Village-based LTC Properties announced it has sold two skilled nursing facilities in the state of New Mexico for a purchase price of $21.3 million, or $90,600 per bed. The sale generated proceeds of $20.8 million, which will be used to pay down the company’s unsecured revolving line of credit. The two facilities were built in 1975 and 1985 and comprised a total of 235 beds. LTC provided a rent decrease of 7.5% of the net proceeds, or approximately $1.5 million in cash rent, to the in-place operator.
The sale is part of LTC’s active asset management program, which aims to reduce the age of its portfolio and identify capital that can be better deployed through new investments or deleveraging the balance sheet. LTC anticipates recording a gain on the sale of approximately $15 million in the first quarter of 2023. The company will continue working with the operator, which will continue to operate four skilled nursing facilities and one behavioral hospital under the master lease.
