LTC makes $40M senior housing operating portfolio acquisition

LTC Properties, Inc. has completed a $40 million acquisition of two assisted-living and memory care facilities in Kentucky, marking a significant addition to its senior housing operating portfolio.

The newly acquired facilities are stabilized and expected to generate a yield of approximately 7% in their first year, with Charter Senior Living introduced as a new operating partner.

So far, LTC has fulfilled 38% of its $460 million investment pipeline, having allocated $175 million to date, and is on track to secure an additional $195 million in SHOP acquisitions by mid-October.

Funding for upcoming investments will come from an expanded line of credit, capital from property sales, and proceeds from common stock sales under the company's ATM program.

Investment Recommendation: Strong Buy

LTC Properties, Inc. (NYSE: LTC) has successfully finalized a $40 million acquisition to enhance its senior housing operating portfolio (SHOP), as announced on Thursday. This strategic move signifies a crucial step in the company's ongoing external growth initiatives.

The newly acquired assets comprise two modern assisted-living and memory care facilities located in Kentucky, collectively offering 158 units. These properties have reached stabilization and are projected to yield approximately 7% in the first year. Additionally, this acquisition introduces Charter Senior Living as a new operating partner for LTC.

To date, LTC has accomplished 38% of its anticipated $460 million investment pipeline, amounting to $175 million. Within this total, $75 million has been allocated to the SHOP segment. The company is on track to secure an additional $195 million in SHOP acquisitions by mid-October, with an extra $90 million expected to close by the year's end.

Funding for these upcoming investments will be sourced from LTC's recently expanded line of credit, capital from previously announced property sales, and loan payoffs in the latter half of 2025, along with proceeds from common stock sales under the company’s ATM program.