Westlake Village, CA-based LTC Properties is following through with plans to diversify its portfolio by transitioning and possibly selling some of the properties in its Brookdale Senior Living portfolio, the company announced Monday. This follows Brookdale’s decision not to exercise LTC’s lease renewal option.

“Through LTC’s active asset management program, and as lease renewals approach, we are prepared, and have contingency plans as we have previously disclosed,” LTC Chairman and CEO Wendy Simpson stated in Monday’s announcement. “We believe LTC is in an excellent position to reduce operator concentration through diversification, and look forward to working with strong regional operators to drive long-term growth and success for us and for them.”

The disclosure comes as no surprise. With Brookdale Senior Living’s lease with the REIT set to end in 2023 and rumors swirling at the time that the Brentwood, TN-based senior living operator was shopping for a buyer, LTC Properties was “not sitting here waiting” to see what Brookdale’s future moves are, Simpson said in October on the company’s third-quarter earnings call.

During the fourth quarter and end-of-year earnings call earlier this month, Simpson said that in 2022, the REIT invested more than $170 million, making it the company’s strongest investment year since 2015. She said that LTC Properties also was diligent in right-sizing its portfolio by selling underperforming assets and transitioning the properties of struggling operators to new managers. Brookdale’s lease is one of six maturing for the real estate investment trust in 2023.

Brookdale is contractually obligated to pay rent on the portfolio of 35 assisted living communities across eight states through the end of the lease term on Dec. 31. The portfolio represents 8.4% of pro forma annualized contractual cash rent and 8.2% of pro forma annualized generally accepted accounting principles rent. 

“Our relationship with Brookdale has been one of mutual respect and support, and we wish them well,” Simpson said Monday.