With $400 million of new investments now included in its guidance, LTC Properties upped its forecast for the rest of the year. Its SHOP portfolio will more than double in size as the REIT transforms itself from a mostly triple-net lease orientation to a more diversified investor, taking advantage of improving operating metrics.
Over the next 60 days, LTC expects to close about $320 million in new investments, of which $60 million is a five-year mortgage loan at 8.25%. When these investments close, LTC’s SHOP portfolio will represent nearly 20% of the total portfolio. Net income, FFO and FAD guidance were all increased.
Sabra Health Care REIT also increased its guidance based on new investments expected to close soon and same-community managed seniors housing cash NOI increasing by 17.1% year over year. In the second quarter, Sabra agreed to about $220 million of new investments with an estimated initial cash yield in the high 7% range.
The REIT also transitioned 21 seniors housing properties formerly operated by Holiday by Atria to three other providers, two of which are existing relationships. These include Discovery Senior Living which will take over 11 communities, and Inspirit Senior Living, which will manage five. The remaining five communities will be turned over to Sunshine Retirement Living, a new relationship for Sabra. On its leased portfolios, coverage keeps on increasing, which is what investors want to hear.
