LTC Properties reports Genesis Healthcare filed for Chapter 11 bankruptcy

LTC Properties (LTC) learned yesterday that Genesis Healthcare filed for Chapter 11 bankruptcy. Affiliates of Genesis lease six skilled nursing centers in New Mexico (and Alabama with a total of 782 beds under a master lease with LTC. The master lease matures on April 30, 2026 and provides three 5-year renewal options. On June 3, LTC received Genesis’ written notice of its exercise of a 5-year extension option, which would extend the term of the lease to April 30, 2031. Annualized revenue and annualized contractual cash revenue from Genesis were $8.4M and $9.5M, respectively, representing 4.5% and 5.1% of LTC’s annualized revenue and annualized contractual cash revenue, respectively, as of March 31. Genesis has paid their contractual rent through July 2025. LTC holds $4.7M of security from Genesis as required by the master lease in a letter of credit.