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LTC Clinches JV Deal to Develop Hamilton House for $23M
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LTC Properties (LTC - Free Report) recently announced that it has entered into a joint-venture (JV) agreement with affiliates of Tealwood Senior Living and developer Tukka Properties to construct a private-pay assisted living and memory care community.
According to the JV deal, the companies will acquire a land parcel in Cedarburg, WI, to develop Hamilton House — a 110-unit healthcare campus — worth $23 million. The project is scheduled to break ground in 2018 and is expected to open in spring 2019.
While Tukka will develop the property, an affiliate of Tealwood will operate the property under a triple-net lease with the JV. In addition, LTC will act as a capital partner. The agreement is LTC’s first initiative using this model.
Notably, this is also the first time that LTC and Tealwood have collaborated for a project. The venture has also enabled LTC to add Tealwood to its portfolio of operators. Tealwood has considerable experience in the management and operation of assisted living communities with responsibilities for more than 50 communities in the United States. Hence, the JV is a strategic fit for this healthcare real estate investment trust (REIT).
With the project, the company is making an attempt to offer more creative and flexible financing structures to regional operators. Per Tealwood’s management, construction of Hamilton House will help the company expand its presence and offer assisted living for residence in “underserved markets.”
Although LTC is focused to develop senior housing properties in partnership with regional operators, challenged operator performance and problems with tenants have hindered the growth of this company.
Shares of this Zacks Rank #3 (Hold) company have underperformed its industry, in the past year. In fact, the stock has declined 9.5% compared with the industry’s gain of 2.9% during the same time period.
Lamar’s funds from operations (FFO) per share estimates for 2017 remained unchanged at $4.96 over the past month. Its share price has increased 5.5% in three months’ time.
Outfront Media’s FFO per share estimates for the current year has remained unchanged at $1.98 in a month’s time. Over the past three months, the stock has declined 5.4%.
Easterly Government Properties’ Zacks Consensus Estimate for 2017 FFO has remained unchanged at $1.27 in a month’s time. Also, its shares have gained 0.7% in three months’ time.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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LTC Clinches JV Deal to Develop Hamilton House for $23M
LTC Properties (LTC - Free Report) recently announced that it has entered into a joint-venture (JV) agreement with affiliates of Tealwood Senior Living and developer Tukka Properties to construct a private-pay assisted living and memory care community.
According to the JV deal, the companies will acquire a land parcel in Cedarburg, WI, to develop Hamilton House — a 110-unit healthcare campus — worth $23 million. The project is scheduled to break ground in 2018 and is expected to open in spring 2019.
While Tukka will develop the property, an affiliate of Tealwood will operate the property under a triple-net lease with the JV. In addition, LTC will act as a capital partner. The agreement is LTC’s first initiative using this model.
Notably, this is also the first time that LTC and Tealwood have collaborated for a project. The venture has also enabled LTC to add Tealwood to its portfolio of operators. Tealwood has considerable experience in the management and operation of assisted living communities with responsibilities for more than 50 communities in the United States. Hence, the JV is a strategic fit for this healthcare real estate investment trust (REIT).
With the project, the company is making an attempt to offer more creative and flexible financing structures to regional operators. Per Tealwood’s management, construction of Hamilton House will help the company expand its presence and offer assisted living for residence in “underserved markets.”
Although LTC is focused to develop senior housing properties in partnership with regional operators, challenged operator performance and problems with tenants have hindered the growth of this company.
Shares of this Zacks Rank #3 (Hold) company have underperformed its industry, in the past year. In fact, the stock has declined 9.5% compared with the industry’s gain of 2.9% during the same time period.
Better-ranked stocks in the REIT space include Lamar Advertising Company (LAMR - Free Report) , Outfront Media (OUT - Free Report) and Easterly Government Properties (DEA - Free Report) . All three carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Lamar’s funds from operations (FFO) per share estimates for 2017 remained unchanged at $4.96 over the past month. Its share price has increased 5.5% in three months’ time.
Outfront Media’s FFO per share estimates for the current year has remained unchanged at $1.98 in a month’s time. Over the past three months, the stock has declined 5.4%.
Easterly Government Properties’ Zacks Consensus Estimate for 2017 FFO has remained unchanged at $1.27 in a month’s time. Also, its shares have gained 0.7% in three months’ time.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>