LTC Properties announced this week its acquisition of four Texas-based rehabilitation centers from LuxeRehab for about $52 million.
The 10-year lease term has two five-year renewal options and includes a purchase option beginning at the end of the fifth lease year through the end of the seventh lease year. LTC expects to receive rent of approximately $1 million in each of the third and fourth quarters of 2022 and approximately $4.3 million during 2023, according to a statement.
The properties have a combined total of 339 beds primarily in private rooms. Ignite Medical Resorts, an LTC partner, will operate the centers.
“Our successful partnership with Ignite has been mutually beneficial, and we are excited to expand our relationship with them through the purchase of these four newer assets that reduce the average age of LTC’s portfolio,” Wendy Simpson, LTC’s chief executive, said in a statement.
Westlake Village-based LTC initially funded the acquisition with an unsecured revolving line of credit. It intends to use proceeds from previously announced asset sales to pay down the line of credit.
Shares of LTC closed down 11 cents, or a fraction of a percent, to $37.13 on the Nasdaq Friday, a day when the market closed down more than 1 percent.