LTC Properties has completed the divestiture of its Preferred Care holdings months ahead of schedule, the Westlake Village, CA-based real estate investment trust announced Thursday.
Net proceeds from the sale, including one property sold in 2019 and 21 sold in the first quarter of 2020, amount to $77.9 million, resulting in a total estimated gain of $44 million. The portfolio had a combined net book value of $35.6 million.
As of late 2016, when the REIT had 30 Preferred Care properties, the group made up 7.2% of LTC’s portfolio. By August 2019, Preferred Care operated 23 properties for LTC, but the REIT was in “active negotiations for all of these properties.”
“We enjoyed a long, profitable and amicable relationship with Preferred Care and wish them much success with their newly reorganized company. We greatly appreciate their cooperation throughout their arduous bankruptcy and through this sales process,” said LTC Properties Chairman, CEO and President Wendy Simpson. “These proceeds provide LTC with increased liquidity and allow us to pursue opportunities for future growth, even in the midst of a particularly challenging environment.”
LTC also announced Thursday that senior management will participate in the Mizuho Inaugural Healthcare REIT Conference on April 7. The company’s presentation package will be available at www.LTCreit.com.