(By Balaseshan) LTC Properties Inc. (NYSE:LTC), a health care real estate investment trust (REIT), said it has acquired two skilled nursing facilities with a total of 288 licensed beds for $54.0 million.
One property located in Cincinnati, Ohio was built in 2009 and the other property, located in Dayton, Ohio, was built in 2010. The acquisition was funded from the company's unsecured revolving line of credit and cash on hand.
Simultaneous with the purchase, the company entered into to a master lease with affiliates of Carespring Health Care Management, LLC at an initial cash yield of 8.5% and an estimated GAAP yield of 10.1%.
The initial term of the lease is 15 years with two 5-year renewal options and annual rent escalations of the lesser of 2.25% for the first seven years and 2.50% for the remainder of the term or a calculation based on the consumer price index.
Previously on July 2, the company acquired a skilled nursing property with 90 licensed beds for $6.5 million. The property is located in Brownwood, Texas and was built in 2011. The acquisition was funded from the company's unsecured revolving line of credit.
Simultaneous with the purchase of Brownwood skilled nursing property, the company added the property to an existing master lease with Senior Care Centers at an initial cash yield of 9.0% and an incremental GAAP yield of 10.7%.
LTC is trading up 0.67% at $35.94 on Wednesday. The stock has been trading between $20.40 and $37.93 for the past 52 weeks.