LTC Announces Development Commitments and Exclusive Pipeline Agreement

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)-- LTC Properties, Inc. (NYSE:LTC) announced today that it entered into development commitments totaling $19.6 million with an existing operator, Anthem Memory Care (“Anthem”), to fund the construction of two free-standing private-pay memory care communities in Colorado (Denver MSA), one with 60-units and the other with 56-units. In conjunction with such commitments, LTC closed on two parcels of land for an aggregate purchase price of $2.1 million which were simultaneously added to LTC’s existing master lease agreement with Anthem. Rent at an initial annual rate of 9.25% will commence upon the respective project’s completion date (but in no event later than December 31, 2014) and be calculated based on the land purchase price and construction costs funded for each property to include compounded, carried interest thereon of 9.0%.

Additionally, LTC announced that it entered into a pipeline agreement with Anthem whereby LTC will be afforded the exclusive opportunity to finance any seniors housing development projects or acquisition opportunities originated by Anthem through May 2018 (unless earlier terminated as provided for therein) with provisions limiting, among other things, to five the number of development projects Anthem may have under construction at any time. Any such projects or opportunities financed by LTC pursuant to the agreement will be added to the parties’ master lease with the then remaining term extended by 10 years at initial lease rates estimated to range from 9.0% to 10.5% with annual escalations of 2.5%.

Wendy Simpson, LTC’s Chairman, CEO and President commented, “LTC is excited to expand its memory care development initiative with Anthem and to jointly pursue further opportunities through our pipeline agreement. Our first memory care development project with Anthem opened earlier this year with great success, and we look to replicate that success in these new developments. In addition to adding new properties to our portfolio at attractive investment yields, our memory care development initiative enhances the quality mix of our portfolio’s underlying payor source.”

LTC is a self-administered real estate investment trust that primarily invests in senior housing and long-term care properties through triple-net 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.

LTC Properties, Inc.
Wendy L. Simpson
or
Pam Kessler
805-981-8655

Source: LTC Properties, Inc.

Released October 8, 2013