LTC Properties Inc
) disclosed the commencement of the re-leasing procedure for 37
assisted living communities. The properties are leased to
Assisted Living Concepts, Inc. and Extendicare Health Services,
Inc. and expiring on Dec 31, 2014.
Notably, the annualized GAAP rent generated from these 37
assets was about $11 million as of Sep 30, 2013. The properties
are positioned in Pacific Northwest, Midwest and Texas regions
and offer huge opportunity for the assisted living providers to
expand their presence in these areas. Thus, given the significant
value of these assets, this healthcare real estate investment
trust (REIT)'s decision to re-lease the properties is
LTC Properties primarily invests in long-term care and other
healthcare properties through property lease transactions,
mortgage loans and other investments. The company usually leases
its healthcare facilities in "triple-net" leases, under which the
tenant pays all taxes, insurance and maintenance for the
properties, in addition to rent.
Moreover, the healthcare sector is comparatively immune to the
macroeconomic problems faced by office, retail and apartment
REITs. It offers stability to the company amid a volatile market,
as even in tough economic conditions, customers need to spend on
healthcare services, while reducing their discretionary
However, LTC Properties currently carries a Zacks Rank #4
(Sell). Some better-ranked stocks in the REIT- Equity Trust -
Other industry include
Cole Real Estate Investments, Inc.
W. P. Carey Inc.
National Health Investors Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
COLE RL EST INV (COLE): Free Stock Analysis
LTC PROPERTIES (LTC): Free Stock Analysis
NATL HEALTH INV (NHI): Free Stock Analysis
WP CAREY INC (WPC): Free Stock Analysis
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