LTC Announces Acquisition of Land and Development Commitments
by Business Wire
LTC Properties, Inc. (NYSE:LTC) (the “Company”) announced today that it had purchased two parcels of land for a total of $3.1 million and entered into development commitments totaling $26.2 million.
The Company announced the details of the transactions as follows:
In December 2012, the Company purchased an 11.2 acre vacant parcel of land in Northern Kentucky (Cincinnati MSA) for $2.1 million. Simultaneous with the purchase, the Company added the land parcel to an existing master lease with affiliates of Carespring Health Care Management, LLC and made a development commitment to fund the construction of a 143-bed skilled nursing facility in an amount not to exceed $21.4 million. Rent at a rate based on a spread over treasury yields, but not less than 8.5%, will be calculated based on the land purchase price and construction costs funded plus 8.5% compounded on the land purchase price and each amount funded under the commitment. Payment of rent will begin on the earlier of the issuance of the certificate of occupancy or the 29th month following the land acquisition.
Also in December 2012, the Company purchased a 6 acre parcel of land in Frisco, Texas (Dallas MSA) for $1.0 million and entered into a lease and development commitment with affiliates of Mustang Creek Estates in an amount not to exceed $4.8 million for the construction of an 81-unit assisted living and memory care facility. Rent at the rate of 9.25% will be calculated based on the land purchase price and construction costs funded plus 9.0% compounded on the land purchase price and each amount funded under the commitment. Payment of rent will begin on the earlier of the issuance of the certificate of occupancy or the 15th month following the land acquisition. The lease has a 10-year initial term, two 5-year renewal options and annual escalations of 2.5%.
The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through facility lease transactions, mortgage loans and other investments. For more information on LTC Properties, Inc., visit the Company’s website at www.ltcproperties.com.
Forward Looking Statements
This press release includes statements that are not purely historical and are “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, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward looking statements. These forward looking statements involve a number of risks and uncertainties. Please see our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and in our other publicly available filings with the Securities and Exchange Commission for a discussion of these and other risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such forward looking statements. 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.