Senior housing mortgage REIT puts $46M into Q3 deals

LTC Properties finances projects in four states

LTC Properties CEO Wendy Simpson (Getty)
LTC Properties CEO Wendy Simpson (Getty)

LTC Properties, a Westlake Village-based mortgage REIT that focuses on senior housing and skilled-nursing facilities, struck deals for $46 million in new lending during the third quarter, the company said.

The loans came on four different projects around the country, including: a $27 million loan for the purchase of a nursing center in Louisiana; a $13 million loan to the buyer of an assisted living community in Florida; a $4 million loan to refinance an independent living community in Oregon; and a $2 million loan to buy land for a future nursing center in Missouri.

The REIT said all of the loans are relatively short-term investments that “have a lower risk profile in the current environment.” Recent inflationary pressures have prompted expectations of increases in interest rates.

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LTC said it expects its third-quarter loans to generate $3.5 million in annual interest income.

REITs have been enjoying a strong year. Through the first seven months of 2021, the FTSE Nareit All REITS index saw returns above 26 percent, outpacing the surging S&P 500.

LTC provides financing to senior housing and skilled-nursing facilities through sale-leasebacks, mortgage financing, joint-ventures, construction financing and other instruments.

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