LTC Properties has granted more than $3.6 million in rent deferrals since the beginning of the year, according to a company update released Monday.
The Westlake Village, CA-based firm also reported that one of its tenants, ABRI Health Services/Senior Care Centers, filed for Chapter 11 bankruptcy last week. The move comes just a month after LTC sent a notice of default to the tenant for nonpayment of March rent and additional charges owed under the master lease.
LTC was already in the process of transitioning the 11 Texas skilled nursing facilities operated by ABRI/Senior Care in LTC’s portfolio to Texas-based HMG Healthcare by the end of the second quarter.
Annualized rental revenue from ABRI/Senior Care is approximately $15 million, LTC reported, which represents 9.2% and 9.6% of LTC’s annualized GAAP and cash revenue, respectively, as of Dec. 31, 2020. LTC has not received rent from the tenant since February.
In addition, progress continues on LTC’s efforts to transition its 23-property Senior Lifestyle Corp. portfolio to other operators after the Chicago-based operator fell behind on rent payments during the pandemic. To date, 11 of the properties already have been transitioned.
Four additional properties are expected to be transferred by the end of the second quarter. Of the remaining eight properties, three are expected to be sold by the end of the second quarter, subject to timely completion of due diligence; one is expected to be transferred by the end of July; one has been closed and will be sold for an alternative use; and options are currently being evaluated for the last three.
The current minimum monthly rent due to LTC from Senior Lifestyle less amounts received from the re-leased properties is $1.1 million. The REIT also reported that it has agreed to provide rent deferrals and abatements up to $721,000 for each of May and June.