LTC Properties Expands SHOP Portfolio to 36 Properties with $73M Acquisition
LTC•LTC Properties acquired two SHOP communities in Colorado and New Mexico for $73 million at about a 7% cap rate, aiming for a low- to mid-teens unlevered IRR funded by ATM equity sales. That brings its SHOP portfolio to 36 properties, now representing 34% of gross real estate investments.
1. Acquisition of Two SHOP Communities
LTC Properties purchased two seniors-housing SHOP communities located in Colorado and New Mexico for a combined $73 million, completing the deals at an approximate 7% capitalization rate. The company projects a low- to mid-teens unlevered internal rate of return on the investment.
2. Expansion of SHOP Portfolio
Since launching its Seniors Housing Operating Partnership in May 2025, LTC has grown the SHOP platform to 36 properties, which now account for 34% of its total gross real estate investments. The portfolio spans eleven operators, nine of which represent new relationships for the REIT.
3. Funding and Management
The acquisitions were funded through proceeds from at-the-market equity sales, preserving balance sheet flexibility. MorningStar Senior Living, an existing operator within LTC’s SHOP structure, will continue to manage the newly acquired communities, maintaining operational consistency.
