Weekly Real Estate News
LTC Properties has acquired three senior housing communities for nearly $160 million while selling more than $260 million of non-SHOP assets, accelerating a portfolio transformation that has shifted more of the REIT’s earnings toward directly operated senior housing.
The company acquired one Florida community for $69 million that will be operated by Charter Senior Living and two communities in Virginia and Maryland for $89 million that will be operated by IntegraCare, a new operator relationship for LTC.
Together, the acquisitions add 270 independent living, assisted living and memory care units. LTC said the properties average six years old and are in primary markets as designated by the National Investment Center for Seniors Housing & Care.
The investments are expected to generate an average first-year capitalization rate of about 6.5% and an anticipated unlevered internal rate of return in the low- to mid-teens.
Sales are funding the SHOP expansion
LTC said it sold two non-SHOP portfolios containing three triple-net skilled nursing centers and 17 triple-net senior housing communities. Those sales generated more than $260 million in gross proceeds and are expected to produce a gain of roughly $225 million. The sold portfolios generated $12 million in annualized rental income.
The REIT also expects to receive the previously disclosed payoff of a $180 million mortgage loan secured by 14 skilled nursing centers in early to mid-November.
LTC launched its SHOP platform in May 2025. It has since grown from 13 to 46 communities and now contributes more than 40% of annualized net operating income. Triple-net skilled nursing has declined to approximately 30% of annualized NOI.
Year to date, LTC said it has completed approximately $740 million of SHOP acquisitions, representing more than 80% of the midpoint of its 2026 acquisition target. It has also received $550 million in gross proceeds from asset sales and a loan payoff tied to $33 million in annualized income, with an anticipated combined gain on sale exceeding $330 million.
The numbers show that LTC is doing more than adding properties. It is changing the composition of the REIT, exchanging lease-driven exposure for a larger operating stake in senior housing performance.
