A $73-million acquisition is the latest push for Westlake Village-based real estate investment trust LTC Properties Inc.’s fast-growing senior housing operating strategy.
The company has added two senior housing and healthcare properties in Colorado and New Mexico to its nascent SHOP platform.
Launched in May 2025, the portfolio has grown to 36 properties and represents just over a third of LTC’s total gross real estate investments.
“Relationships are the cornerstone of LTC’s growth story,” said David Boitano, LTC’s chief investment officer. “This acquisition was sourced off-market and speaks to the strength of our valued partnerships with an expanding group of strong operator relationships, each reflecting the vision and alignment that drives long-term value.”
The deal closed at a moderate capitalization rate of 7%, meaning an expected annual return consistent with or slightly above the average among senior housing properties, according to 2025 data from real estate services company Jones Lang LaSalle Inc.
Raising funds for a deal
LTC, a publicly listed trust that debuted on the New York Stock Exchange in 2021, raised funds for the transaction by selling newly issued shares. The company’s share prices have had a rocky run after mid-2022 highs, but rose roughly 11% over the last six months.
Central to LTC’s growth strategy is a big bet on SHOP, which gives the trust more control over property operations than the triple-net leases it primarily dealt in before last year’s pivot.
In this year’s first quarter, LTC reported a net operating income of $12.7 million from its SHOP portfolio. The company also announced plans to close $250 million in SHOP acquisitions in the second quarter and expand the strategy to 45% of its total investments by the year’s end.
