LTC Properties Inc.
) - a healthcare real estate investment trust (REIT) - recently
announced the completion and subsequent opening of a skilled
nursing property in Amarillo, Texas. With the opening of this
120-bed property, the company replaced its existing 90-bed
skilled nursing facility.
The new property has been rented out to an indirect affiliate
of Fundamental under a master lease deal, which included 2
properties with a total of 316 beds. Notably, LTC Properties
projects annual incremental cash rent of approximately
$0.7 million from the asset. Hence, it is a strategic move
that will finally aid in improving the company's bottom line in
Notably, according to the Centers for Medicare and Medicaid
Services (CMS), national health expenditures will increase by
3.8% in 2013 and 7.4% in 2014. Also, as per CMS, senior citizens
are the largest customers of healthcare services, with 75-year
and older segment of the population spending over 200% more on
healthcare services than the population average, on a per capita
Moreover, LTC Properties remains relatively immune to the
macroeconomic problems faced by other sectors, as even amid
challenging economic conditions, consumers need to spend on
healthcare services while curtailing discretionary purchases.
Hence, in a steadily booming healthcare sector, the current
effort offers decent growth potential going forward.
LTC Properties currently carries a Zacks Rank #3 (Hold).
Better performing REIT stocks that are worth a look include
DCT Industrial Trust Inc.
Host Hotels & Resorts Inc.
), all of which have a Zacks Rank #2 (Buy).
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