LTC Properties has completed a $200 million acquisition of four senior housing operating portfolio communities in Minnesota, accelerating the REIT’s expansion of its SHOP platform.
The four communities contain 453 independent living, assisted living and memory care units and have an average age of approximately nine years.
LTC anticipates a year-one cap rate of approximately 7% and an unlevered internal rate of return in the low- to mid-teens. Lifespark Senior Living, an existing LTC SHOP partner, has assumed operation of the properties.
LTC financed most of the transaction using $167 million in proceeds from the sale of 13 skilled nursing centers in Texas.
Those properties generated approximately $12.4 million in annualized contractual cash income and had a net book value of $101 million.
The remaining acquisition funding came from LTC’s revolving credit facility, which the company expects to repay by October 1 using proceeds from additional asset sales.
Since launching its SHOP strategy in May 2025, LTC has expanded the platform from 13 to 43 communities, with an average portfolio age of approximately 10 years.
SHOP properties now represent approximately 38% of LTC’s annualized net operating income and span 12 operators, 10 of which are new relationships established since the SHOP strategy launched.
LTC has now completed nearly $580 million of acquisitions in 2026 and expects another $120 million of transactions to close by the end of September.
KEY QUOTE:
“Adding these communities with Lifespark advances our strategy of growing alongside strong operators with quality assets that provide great scale, desirable unit mix and compete successfully in their markets. We’ve now closed nearly $580 million in acquisitions this year, with another $120 million expected to transact by the end of September. LTC is building a scalable growth engine fueling continued SHOP momentum and long-term shareholder value.”
Dave Boitano, Executive Vice President and Chief Investment Officer of LTC Properties
