LTC Drops Assisted-Living OperatorsTuesday, January 14, 2014
LTC Properties Inc. announced on Tuesday it will not renew leases with two Wisconsin firms that operate more than a third of its assisted-living facilities.
The Westlake Village real estate investment trust will allow 37 leases with Assisted Living Concepts Inc. of Menomonee Falls and Extendicare Health Services Inc. of Milwaukee to expire at the end of the year and re-lease the properties.
LTC owns long-term care and other health-care facilities but does not operate them. The portfolio consists of facilities in the Pacific Northwest, Midwest and Texas. They generated more than 9 percent of LTC’s total pro-forma revenue in the third quarter.
“We believe the significant potential upside of this portfolio represents a compelling economic opportunity for many quality assisted living providers,” said Wendy Simpson, chairwoman and chief executive of LTC.
CSCA Capital Advisors LLC of New York is acting as an advisor to market the properties.
LTC’s portfolio includes 84 skilled-nursing homes, 105 assisted-living facilities and other properties.