“LTC had a quiet but active first half of the year,” the healthcare real estate investment trust’s chair, CEO and president, Wendy Simpson, told participants in a second-quarter earnings call on Tuesday.
Among other activities in the second quarter, the Westlake Village, CA-based REIT acquired two memory care communities in Kansas, totaling 120 units, for $25 million; purchased a new 60-unit memory care community in Kentucky for $14.3 million; bought a new 70-unit assisted living and memory care community in Georgia for $14.3 million; and completed and opened a 56-unit memory care community in Texas. After the end of the second quarter, LTC Properties completed construction of a 66-unit memory care community in Illinois, among other activities.
“To date, in 2016, we have invested approximately $82 million,” Simpson said.
Clint Malin, LTC’s executive vice president and chief investment officer, said that about 75% of the REIT’s new investments this year have been in private-pay assets. “By year’s end, we expect the opening of three additional senior living communities currently under construction and being funded by LTC,” he said.
The REIT continues to seek investment opportunities, Malin said, and has an active development and acquisition pipeline of $130 million. Skilled nursing currently represents 75% of the pipeline, he said, but the mix fluctuates.
“Year to date, the majority of our investments … are on the private-pay side, so it really depends on any specific time as far as what we’re looking at,” Malin said. Overall, about 53% of LTC’s underlying revenue comes from private-pay sources, he said.
Assisted living occupancy was 86% for the trailing 12-month period that ended in the first quarter, Malin said, compared with 79.1% for post-acute properties and 85.3% for range-of-care properties.