Creator: Patrick Connole
LTC Properties Snaps Up 2 SHOP Communities for $95M
LTC Properties has acquired two communities in its SHOP portfolio for $95 million, building on an aggressive strategy to add seniors housing communities to the fold.
LTC Properties, Inc. (NYSE: LTC) said it has acquired two communities in its seniors housing operating portfolio (“SHOP”) for $95 million, continuing a string of purchases to extend its SHOP-focused external growth strategy.
LTC’s year-to-date SHOP acquisitions now total over $830 million, representing more than 90 percent of its mid-point acquisition guidance of $900 million.
The company is on track to reach the mid-point of its acquisition guidance by year-end, at which point SHOP is expected to represent nearly 50 percent of LTC’s annualized net operating income.
Acquisition Highlights: Added two SHOP communities totaling $95 million.
Alabama: $71 million for a 180-unit independent living, assisted living, and memory care community. Charter Senior Living, an existing LTC SHOP operator, will continue to manage the community.
Iowa: $24 million off-market acquisition for an 85-unit assisted living and memory care community. Arrow Senior Living, an existing LTC SHOP operator, will continue to manage the community.
Collectively, the communities have a weighted-average occupancy of 93 percent with an average age of six years. The average year-one cap rate is approximately 6.5 percent with an anticipated unlevered IRR in the low- to mid-teens.
Funding: Proceeds from previously disclosed property sales.
LTC said it has rapidly scaled its SHOP platform since its launch in May 2025.
LTC’s SHOP platform has grown from 13 to 48 communities and now contributes nearly 45 percent of the company's annualized net operating income, while its triple-net skilled nursing portfolio has been reduced to approximately 30 percent of its annualized net operating income.
The SHOP portfolio, of which 61 percent is located in primary markets as designated by NIC, has an average age of nine years and is managed by 13 operators, including 11 new relationships established through the platform's expansion.
Comments or questions? Contact Patrick Connole at pconnole@parkplacelive.com.
