Real estate investment trust LTC Properties (NYSE: LTC) is shopping for a new tenant for 37 of its assisted living properties nationwide.
The company has decided not to renew its leases that are due to expire at the end of this calendar year with Assisted Living Concepts and Extendicare Health Services. LTC said it has begun the process of re-leasing the properties, though there is no certainty as to the time frame or process by which they will be re-leased.
“LTC welcomes the opportunity to start the re-leasing process for these 37 communities,” said LTC Properties CEO Wendy Simpson in a press release. “We believe the significant potential upside of this portfolio represents a compelling economic opportunity for many quality assisted living providers.”
The properties are located in several regions and spanning 10 states including Washington, Idaho, Oregon, Arizona, Texas, Nebraska, Iowa, Ohio and Indiana, presenting an opportunity for the right operator, she said.
“The portfolio’s strategic geographic concentrations in the Pacific Northwest, Midwest and Texas regions, offer potential operators the opportunity to either leverage their existing footprint in these markets or to establish new operating regions with ample critical mass,” Simpson said.
LTC is considering proposals from operators to lease the entire portfolio, a regional cluster or in limited circumstances, individual properties, a company representative told SHN.
LTC is a self-administered REIT with its investments primarily based in long term care and senior housing properties through triple-net lease transactions, mortgage loans and other investments, according to the company.
Editor’s note: A previous version of this article stated in error LTC Properties was seeking a new landlord for the properties; LTC owns the properties and is seeking a new tenant. SHN regrets the error.
Written by Elizabeth Ecker