LTC Properties plans to diversify its portfolio through the transition and possible sale of some of the properties in its Brookdale Senior Living portfolio, following Brookdale's election not to exercise its lease renewal option.

Brookdale is contractually obligated to pay rent on the portfolio of 35 assisted living communities across eight states through the end of the lease term on December 31, 2023. The portfolio represents 8.4% of pro forma annualized contractual cash rent, and 8.2% of pro forma annualized GAAP rent. LTC has funded approximately $7 million in capital improvements in the properties over the last two years.

"Our relationship with Brookdale has been one of mutual respect and support, and we wish them well," said Wendy Simpson, LTC's Chairman and CEO. "Through LTC's active asset management program, and as lease renewals approach, we are prepared, and have contingency plans as we have previously disclosed. We believe LTC is in an excellent position to reduce operator concentration through diversification and look forward to working with strong regional operators to drive long-term growth and success for us and for them."