LTC Properties has invested approximately $128 million in 12 assisted living/memory care properties (a combined 937 licensed beds in 568 units). The communities are located throughout North Carolina and are currently owned and operated by an existing LTC partner.

The majority of LTC's $128 million investment is structured as a joint venture and a minor portion is structured as a senior mortgage loan secured by one property. The investment was funded from approximately $99 million borrowed under LTC's line of credit and $29 million of net proceeds from the sale of 757,400 shares of LTC's common stock under its equity distribution agreements during the 2022 fourth quarter.

Approximately $117 million of LTC's $128 million investment is for a 97% ownership in a $121 million joint venture with the current operator for the purchase of 11 properties. The communities will be operated under a 10-year master lease with two five‑year renewal options. LTC expects to receive net rent of approximately $8.5 million during 2023 related to the joint venture investment, which is covered by in-place cash flow generated by the properties. The initial annual rent is at a rate of 7.25%, increasing to 7.50% in year three and escalating thereafter based on CPI subject to a floor of 2% and a ceiling of 4%. The master lease provides the operator with the option to buy up to 50% of the properties at the beginning of the third lease year and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit IRR of 9.00% on any tranche of the properties being purchased. LTC will consolidate the joint venture's acquired properties and the acquisition will be accounted for as a financing receivable due to the seller's purchase option.