LTC Properties, Inc. (NYSE: LTC), a real estate investment trust that primarily invests in senior housing and health care properties, announced Monday it has completed the sale of 16 assisted living properties to Enlivant (formerly known as Assisted Living Concepts) for $26.5 million.
The properties — located in Arizona, Idaho, Oregon and Washington — comprise 615 units, translating to a cost of approximately $43,000 per unit. As a result of the sale, LTC expects to record a gain of approximately $3.8 million in the fourth quarter of 2014.
“With the sale complete, our energies are strongly focused on further diversifying our asset base by property type, geography and operator, while driving future growth through expanded and new operator relationships and strategic development opportunities,” said Wendy Simpson, LTC’s chairman and CEO, in a statement.
In November, LTC announced it had resolved a portfolio of 37 properties that were leased most recently to Extendicare and Enlivant. The 37 properties would be re-leased and sold, with 16 properties being sold to Enlivant for $26.5 million; 13 properties entering into an existing master lease with an affiliate of Senior Lifestyle Corp.; and seven properties being re-leased by Veritas InCare under a new 10-year master lease. LTC granted consent for the remaining property to be closed by Enlivant.
“This transaction represents an important step in taking action on the 37-property portfolio co-leased to Enlivant and an affiliate of Extendicare under leases that expire at the end of December 2014. We believe that selling these 16 properties provides a better risk adjusted return to our shareholders than had we re-leased them,” Simpson said.
Written by Emily Study