LTC Properties has completed its effort to divest seven skilled nursing facilities after one of its top 10 operating partners decided it was not renewing its master lease for these facilities, instead choosing to downsize and exit some states. In early October, the REIT announced that it sold two of the skilled nursing facilities in Florida for $42 million, or $175,000 per bed, with expectations of a gain on the sale of approximately $26 million.
The company more recently announced that it completed the sale of the other five facilities. The four Virginia SNFs sold for $51 million and the California asset sold for $29 million. LTC Properties expects a gain on this sale of approximately $52 million. Proceeds will be redeployed for the acquisition of newer, stabilized SHOP assets.
Throughout the year, the REIT has increased its exposure to seniors housing. On a gross real estate investment basis, approximately 62% of the company’s assets are now in seniors housing with the remaining 38% in skilled nursing. LTC’s SHOP segment now represents 19% of its total portfolio.
