LTC Advances External Growth Strategy With $40 Million SHOP Acquisition
- Welcomes Charter Senior Living to LTC's SHOP -
LTC Properties, Inc. (NYSE: LTC) ("LTC" or the "Company"), a real estate investment trust that invests in seniors housing and health care properties, today announced the closing of a $40 million Senior Housing Operating Portfolio ("SHOP") acquisition of two assisted living and memory care communities operated by Charter Senior Living.
Investment Highlights
- Investment: $40 million off-market acquisition of two recently built assisted living and memory care communities in Kentucky totaling 158 units.
- Performance: Opened in 2023, the communities are stabilized and are expected to deliver a year-one yield of approximately 7%.
- Operating Partner: Charter Senior Living, a partner new to LTC, has managed the communities since opening.
- Momentum: LTC has now closed $175 million (38%) of its projected $460 million pipeline. Of this, $75 million has been added to SHOP. The Company expects to close an additional $195 million in SHOP acquisitions by mid-October 2025, and an additional $90 million by the end of 2025.
"With approximately $460 million in investments anticipated this year, LTC is stepping into an exciting new phase of expansion, driven by both enthusiasm and focus," said Pam Kessler, LTC's Co-CEO. "This $40 million acquisition underscores LTC's ability to execute on external growth through SHOP."
"Momentum around SHOP continues to build, and we're seeing strong interest as we build new partnerships while deepening the ones we already value," said Clint Malin, LTC's Co‑CEO. "While Charter is new to LTC, we've worked with Keven Bennema in the past and know the caliber and integrity he and his team bring - we're excited to build this relationship."
"Partnering with LTC strengthens our mission of "Enhancing The Human Spirit!" by providing seniors with exceptional care and services," said Keven J. Bennema, Co‑founder and CEO of Charter Senior Living. "These communities have thrived since they opened and we're excited to expand with a trusted partner that not only shares our values but also provides additional opportunities for growth through access to programmatic capital."
LTC plans to fund the new investments through its recently expanded line of credit, proceeds from previously disclosed property sales and loan payoffs occurring in the second half of 2025, and proceeds from sales of common stock under the Company's ATM program.
About LTC
LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, investing through SHOP, triple-net leases, joint ventures, and structured finance solutions. The Company's portfolio includes nearly 200 properties throughout the United States. Based on gross real estate investments, approximately 57% of the Company's assets are seniors housing communities with the remainder skilled nursing centers. Learn more at www.ltcreit.com.
About Charter Senior Living
Based in Naperville, Illinois, Charter Senior Living is a caring and compassionate leader within the senior living industry. Charter owns and manages more than 60 senior living communities throughout the U.S., offering Independent Living, Assisted Living, and Memory Care services. A family-owned business with an executive team that has more than 100 combined years of experience in the senior housing industry, Charter Senior Living's mission is to enhance the human spirit of residents, families, and employees while serving with heart, purpose, and courage – and to have fun while serving. Learn more at www.charterseniorliving.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. You can identify some of the forward-looking statements by their use of forward-looking words, such as "believes," "expects," "may," "will," "could," "would," "should," "seeks," "approximately," "intends," "plans," "estimates" or "anticipates," or the negative of those words or similar words. Examples of forward-looking statements include the Company's investment pipeline, including SHOP acquisitions and growth, sources of funding, and future strategy. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect the Company's future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to, the Company's dependence on its operators for revenue and cash flow; operational and legal risks and liabilities under the Company's new SHOP segment; government regulation of the health care industry; changes in federal, state, or local laws limiting REIT investments in the health care sector; federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid; required regulatory approvals for operation of health care facilities; a failure to comply with federal, state, or local regulations for the operation of health care facilities; the adequacy of insurance coverage maintained by the Company's operators; the Company's reliance on a few major operators; the Company's ability to renew leases or enter into favorable terms of renewals or new leases; the impact of inflation, operator financial or legal difficulties; the sufficiency of collateral securing mortgage loans; an impairment of the Company's real estate investments; the relative illiquidity of the Company's real estate investments; the Company's ability to develop and complete construction projects; the Company's ability to invest cash proceeds for health care properties; a failure to qualify as a REIT; the Company's ability to grow if access to capital is limited; and a failure to maintain or increase the Company's dividend. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion under "Risk Factors" contained in the Company's Annual Report on Form 10‑K for the fiscal year ended December 31, 2024, the Company's subsequent Quarterly Reports on Form 10‑Q, and the Company's publicly available filings with the Securities and Exchange Commission. The Company does not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise. Although the Company's management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.
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For more information contact:
Mandi Hogan
(805) 981‑8655