LTC Reports 2024 Fourth Quarter Results
LTC Properties reported strong fourth quarter 2024 results, highlighting progress in its RIDEA strategy implementation, with initial transactions expected in Q2. Total revenues increased due to several factors, including one-time straight-line rental income and rent increases from fair-market resets.
The company's financial position showed improvements with decreased expenses, primarily due to lower interest costs and reduced provision for credit losses. Notable transactions included receiving a $51.1 million mortgage loan payoff from a Georgia property and selling a Colorado property for $5.3 million with a $1.1 million gain.
LTC enhanced its financial flexibility by establishing a new $400 million equity distribution agreement, replacing its previous $200 million agreement. The company's total liquidity stood at $680.4 million as of December 31, 2024, including $9.4 million cash on hand and $280.7 million available under its revolving credit line.
LTC Properties ha riportato risultati solidi per il quarto trimestre del 2024, evidenziando i progressi nell'implementazione della sua strategia RIDEA, con transazioni iniziali previste per il secondo trimestre. I ricavi totali sono aumentati grazie a diversi fattori, tra cui entrate da affitti una tantum e aumenti di affitto derivanti da aggiustamenti di mercato equo.
La posizione finanziaria dell'azienda ha mostrato miglioramenti con una diminuzione delle spese, principalmente a causa di costi di interesse più bassi e una riduzione della provvista per perdite su crediti. Le transazioni notevoli hanno incluso il pagamento di un mutuo di $51.1 milioni da una proprietà in Georgia e la vendita di una proprietà in Colorado per $5.3 milioni con un guadagno di $1.1 milioni.
LTC ha migliorato la sua flessibilità finanziaria stabilendo un nuovo accordo di distribuzione di capitale di $400 milioni, che sostituisce il precedente accordo di $200 milioni. La liquidità totale dell'azienda si attestava a $680.4 milioni al 31 dicembre 2024, inclusi $9.4 milioni di liquidità disponibile e $280.7 milioni disponibili tramite la sua linea di credito revolving.
LTC Properties reportó sólidos resultados para el cuarto trimestre de 2024, destacando los avances en la implementación de su estrategia RIDEA, con transacciones iniciales esperadas para el segundo trimestre. Los ingresos totales aumentaron debido a varios factores, incluidos ingresos por alquileres únicos y aumentos de alquiler derivados de ajustes de mercado justo.
La posición financiera de la empresa mostró mejoras con una disminución de los gastos, principalmente debido a menores costos de interés y una reducción en la provisión para pérdidas crediticias. Las transacciones notables incluyeron el pago de un préstamo hipotecario de $51.1 millones de una propiedad en Georgia y la venta de una propiedad en Colorado por $5.3 millones con una ganancia de $1.1 millones.
LTC mejoró su flexibilidad financiera al establecer un nuevo acuerdo de distribución de capital de $400 millones, reemplazando su acuerdo anterior de $200 millones. La liquidez total de la empresa se situó en $680.4 millones al 31 de diciembre de 2024, incluidos $9.4 millones en efectivo y $280.7 millones disponibles bajo su línea de crédito revolving.
LTC Properties는 2024년 4분기 강력한 실적을 보고하며 RIDEA 전략의 실행 진전을 강조했습니다. 초기 거래는 2분기에 예상됩니다. 총 수익은 일회성 직선 임대 수익 및 공정 시장 재설정으로 인한 임대 증가 등 여러 요인으로 증가했습니다.
회사의 재무 상태는 비용 감소로 개선되었으며, 이는 주로 낮은 이자 비용과 신용 손실에 대한 충당금 감소에 기인합니다. 주목할 만한 거래로는 조지아 주의 부동산에서 $51.1 백만의 모기지 대출 상환을 받고, 콜로라도 주의 부동산을 $5.3 백만에 판매하여 $1.1 백만의 이익을 얻은 것이 포함됩니다.
LTC는 $400 백만의 새로운 자본 배분 계약을 체결하여 이전의 $200 백만 계약을 대체함으로써 재무 유연성을 강화했습니다. 2024년 12월 31일 기준으로 회사의 총 유동성은 $680.4 백만에 달하며, 이에는 $9.4 백만의 현금과 $280.7 백만이 회전 신용 한도 내에서 사용 가능합니다.
LTC Properties a annoncé de solides résultats pour le quatrième trimestre 2024, mettant en avant les progrès réalisés dans la mise en œuvre de sa stratégie RIDEA, avec des transactions initiales attendues au deuxième trimestre. Les revenus totaux ont augmenté en raison de plusieurs facteurs, y compris des revenus locatifs exceptionnels et des augmentations de loyer résultant de réajustements de marché équitable.
La position financière de l'entreprise a montré des améliorations avec une diminution des dépenses, principalement en raison de coûts d'intérêt plus bas et d'une réduction de la provision pour pertes de crédit. Parmi les transactions notables, on peut citer le remboursement d'un prêt hypothécaire de $51.1 millions d'une propriété en Géorgie et la vente d'une propriété dans le Colorado pour $5.3 millions avec un gain de $1.1 millions.
LTC a renforcé sa flexibilité financière en établissant un nouvel accord de distribution de capital de $400 millions, remplaçant son précédent accord de $200 millions. La liquidité totale de l'entreprise s'élevait à $680.4 millions au 31 décembre 2024, y compris $9.4 millions de liquidités disponibles et $280.7 millions disponibles dans le cadre de sa ligne de crédit revolving.
LTC Properties berichtete über starke Ergebnisse im vierten Quartal 2024 und hob die Fortschritte bei der Umsetzung seiner RIDEA-Strategie hervor, mit ersten Transaktionen, die im zweiten Quartal erwartet werden. Die Gesamterlöse stiegen aufgrund mehrerer Faktoren, einschließlich einmaliger Mieteinnahmen und Mietsteigerungen durch faire Marktanpassungen.
Die finanzielle Lage des Unternehmens zeigte Verbesserungen mit gesenkten Ausgaben, hauptsächlich aufgrund von niedrigeren Zinskosten und reduzierten Rückstellungen für Kreditverluste. Zu den bemerkenswerten Transaktionen gehörte die Rückzahlung eines Hypothekendarlehens über $51.1 Millionen von einer Immobilie in Georgia und der Verkauf einer Immobilie in Colorado für $5.3 Millionen mit einem Gewinn von $1.1 Millionen.
LTC verbesserte seine finanzielle Flexibilität, indem es eine neue Eigenkapitalverteilung von $400 Millionen einrichtete, die das vorherige $200 Millionen Abkommen ersetzt. Die GesamtlLiquidität des Unternehmens betrug zum 31. Dezember 2024 $680.4 Millionen, einschließlich $9.4 Millionen Bargeld und $280.7 Millionen verfügbar aus seiner revolvierenden Kreditlinie.
- New $400M equity distribution agreement established, doubling previous capacity
- Total liquidity position of $680.4M as of December 31, 2024
- $1.1M gain realized from Colorado property sale
- Successful payoff received for $51.1M mortgage loan
- Increased impairment loss reported
- Higher general and administrative expenses
Insights
LTC Properties' Q4 2024 results reveal a strategic transformation in progress, marked by three key developments that signal evolving growth dynamics in the seniors housing sector.
The company's move toward RIDEA structures represents a significant strategic pivot from traditional triple-net lease arrangements. Under RIDEA, LTC will participate directly in property-level operations' financial performance, potentially capturing upside in strong markets while assuming greater operational risk. This structure typically generates higher yields than triple-net leases, with NOI growth potential of 200-300 basis points above traditional lease escalators during favorable market conditions.
The balance sheet management demonstrates a disciplined approach to capital allocation. The
Portfolio optimization efforts through strategic dispositions - including the
The transition toward RIDEA structures, while promising, requires careful monitoring of:
- Operator selection and alignment of interests
- Market-specific dynamics affecting occupancy and rate growth
- Operating expense management capabilities
- Risk-adjusted returns compared to triple-net lease structures
-- Company Makes Progress Toward RIDEA Strategy --
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Three Months Ended |
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December 31, |
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(unaudited, amounts in thousands, except per share data) |
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2024 |
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2023 |
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Total revenues |
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$ |
52,582 |
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$ |
50,195 |
Net income available to common stockholders |
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$ |
17,912 |
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$ |
28,057 |
Diluted earnings per common share |
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$ |
0.39 |
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$ |
0.67 |
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NAREIT funds from operations ("FFO") attributable to common stockholders(1) |
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$ |
32,962 |
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$ |
23,902 |
NAREIT diluted FFO per common share(1) |
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$ |
0.72 |
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$ |
0.57 |
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FFO attributable to common stockholders, excluding non-recurring items(1) |
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$ |
29,583 |
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$ |
27,463 |
Diluted FFO attributable to common stockholders, excluding non-recurring items, per share(1) |
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$ |
0.65 |
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$ |
0.66 |
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Funds available for distribution ("FAD")(1) |
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$ |
30,201 |
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$ |
30,021 |
Diluted FAD per share(1) |
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$ |
0.66 |
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$ |
0.72 |
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FAD, excluding non-recurring items(1) |
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$ |
30,201 |
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$ |
30,021 |
Diluted FAD, excluding non-recurring items, per share(1) |
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$ |
0.66 |
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$ |
0.72 |
____________________
| (1) | NAREIT FFO and FAD are non-GAAP financial measures. A reconciliation of these measures is included in the tables at the end of this press release. |
More detailed financial information is available in the tables at the end of this press release, the Company’s Supplemental Operating and Financial Data presentation for the 2024 fourth quarter, and its Form 10-K, as filed with the Securities and Exchange Commission, both of which can be found on LTC’s investor relations website at www.ir.ltcreit.com.
“2024 was a strong year for LTC. We set ambitious goals, and we delivered, often ahead of schedule,” said Pam Kessler, LTC’s Co-Chief Executive Officer and Co-President. “We are making substantial progress on our RIDEA strategy, with initial transactions expected during the second quarter. Adding RIDEA to our robust suite of offerings for growth-minded operating partners unlocks a strong catalyst for future growth for LTC. Additionally, we would like to recognize the recent promotions of Gibson Satterwhite to Executive Vice President, Asset Management and Michael Bowden to Senior Vice President, Investments. They have been an integral part of the LTC team for nearly ten years, and their expertise will be invaluable as we continue to unlock LTC’s long-term growth potential.”
“Our entrance into RIDEA has created significant interest from current and potential operating partners,” said Clint Malin, Co-Chief Executive Officer, Co-President and Chief Investment Officer. “As a result, we are expanding our pipeline with interesting opportunities from both inbound inquiries and proactive outreach. We believe RIDEA will become a critical part of LTC’s strategy, offering operators a structure that aligns their successes with ours.”
Fourth Quarter 2024 Financial Results:
- Total revenues increased due to a one-time additional straight-line rental income related to restoring accrual basis accounting for two master leases, rent increases from fair-market rent resets, previously transitioned portfolios and escalations and higher income from a construction loan funding in 2024. These were partially offset by lower revenue from sold properties and mortgage loan payoffs.
- Expenses decreased primarily due to lower interest expense related to paying down the Company’s unsecured revolving line of credit and scheduled principal paydowns on its senior unsecured notes and a decrease in provision for credit losses. These were partially offset by an increase in impairment loss and general and administrative expense.
- Income from unconsolidated joint ventures increased as a result of a 2024 mortgage loan origination accounted for as an unconsolidated joint venture in accordance with Generally Accepted Accounting Principles.
- Income allocated to non-controlling interests increased due to consolidated joint ventures formed during 2024.
2024 Fourth Quarter Portfolio Update:
Mortgage Loan Payoff and Asset Sale (as previously announced)
-
Received the payoff of a
$51.1 million Georgia ; and -
Sold a closed property in
Colorado for$5.3 million $1.1 million
Debt and Equity
-
Entered into a new equity distribution agreement to sell, from time to time, up to
$400.0 million $200.0 million -
Repaid
$95.8 million -
Repaid
$5.0 million -
Sold an aggregate of 476,370 shares of common stock for
$17.5 million
Activities Subsequent to December 31, 2024:
-
Sold a 29-unit assisted living community located in
Oklahoma for$670,000 -
Borrowed
$15.0 million -
Repaid
$7.0 million
Balance Sheet and Liquidity:
At December 31, 2024, LTC’s total liquidity was
Conference Call Information
LTC will conduct a conference call on Tuesday, February 25, 2025, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time), to provide commentary on its performance and operating results for the quarter ended December 31, 2024. The conference call is accessible by telephone and the internet. Interested parties may access the live conference call via the following:
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Webcast |
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(888) 506‑0062 |
International Number |
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(973) 528‑0011 |
Conference Access Code |
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995858 |
Additionally, an audio replay of the call will be available one hour after the live call through March 11, 2025 via the following:
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(877) 481‑4010 |
International Number |
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(919) 882-2331 |
Conference Number |
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51842 |
About LTC
LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC’s investment portfolio includes 189 properties in 25 states with 30 operating partners. Based on its gross real estate investments, LTC’s investment portfolio is comprised of approximately
Forward-Looking Statements
This press release includes statements that are not purely historical and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Please see LTC’s most recent Annual Report on Form 10‑K and its other publicly available filings with the Securities and Exchange Commission for a discussion of these and other risks and uncertainties. All forward-looking statements included in this press release are based on information available to the Company on the date hereof, and LTC assumes no obligation to update such forward-looking statements. Although the Company’s management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.
LTC PROPERTIES, INC. CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share amounts) |
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Three Months Ended |
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Twelve Months Ended |
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December 31, |
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December 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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(unaudited) |
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(audited) |
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Revenues: |
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Rental income |
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$ |
34,814 |
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$ |
32,489 |
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$ |
132,278 |
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$ |
127,350 |
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Interest income from financing receivables (1) |
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7,002 |
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3,830 |
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21,663 |
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15,243 |
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Interest income from mortgage loans |
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9,374 |
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12,308 |
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45,216 |
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47,725 |
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Interest and other income |
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1,392 |
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1,568 |
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10,690 |
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6,926 |
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Total revenues |
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52,582 |
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50,195 |
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209,847 |
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197,244 |
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Expenses: |
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Interest expense |
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8,365 |
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12,419 |
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40,336 |
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47,014 |
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Depreciation and amortization |
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9,194 |
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9,331 |
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36,367 |
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37,416 |
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Impairment loss |
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6,953 |
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(2 |
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3,265 |
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(3 |
) |
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6,953 |
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(2 |
) |
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15,775 |
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(4 |
) |
(Recovery) provision for credit losses |
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(201 |
) |
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3,571 |
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741 |
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5,678 |
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Transaction costs |
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140 |
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607 |
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819 |
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1,144 |
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Property tax expense |
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3,114 |
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3,518 |
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12,930 |
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13,269 |
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General and administrative expenses |
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7,227 |
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5,942 |
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27,243 |
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24,286 |
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Total expenses |
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34,792 |
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38,653 |
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125,389 |
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144,582 |
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Other operating income: |
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Gain on sale of real estate, net |
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1,097 |
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16,751 |
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7,979 |
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37,296 |
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Operating income |
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18,887 |
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28,293 |
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92,437 |
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89,958 |
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Income from unconsolidated joint ventures |
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703 |
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377 |
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2,442 |
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1,504 |
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Net income |
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19,590 |
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28,670 |
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94,879 |
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91,462 |
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Income allocated to non-controlling interests |
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(1,507 |
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(440 |
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(3,839 |
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(1,727 |
) |
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Net income attributable to LTC Properties, Inc. |
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18,083 |
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28,230 |
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91,040 |
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89,735 |
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Income allocated to participating securities |
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(171 |
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(173 |
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(682 |
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(587 |
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Net income available to common stockholders |
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$ |
17,912 |
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$ |
28,057 |
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$ |
90,358 |
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$ |
89,148 |
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Earnings per common share: |
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Basic |
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$ |
0.40 |
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$ |
0.67 |
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$ |
2.07 |
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$ |
2.16 |
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Diluted |
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$ |
0.39 |
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$ |
0.67 |
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$ |
2.04 |
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$ |
2.16 |
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Weighted average shares used to calculate earnings per |
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common share: |
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Basic |
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45,025 |
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41,701 |
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43,743 |
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41,272 |
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Diluted |
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45,523 |
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42,046 |
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44,241 |
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41,358 |
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Dividends declared and paid per common share |
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$ |
0.57 |
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$ |
0.57 |
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$ |
2.28 |
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$ |
2.28 |
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____________________
| (1) | Represents rental income from acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as financing receivables on the Consolidated Balance Sheets and the rental income to be presented as Interest income from financing receivables on the Consolidated Statements of Income. |
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(2) |
Represents the impairment loss in connection with the anticipated closure of two assisted living communities totaling 95 units in |
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(3) |
Represents the impairment loss in connection with the negotiations to sell seven assisted living communities totaling 248 units in |
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(4) |
Represents the impairment loss related to three assisted living communities totaling 197 units in |
LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (audited, amounts in thousands, except per share amounts) |
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December 31, 2024 |
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December 31, 2023 |
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ASSETS |
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Investments: |
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Land |
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$ |
118,209 |
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$ |
121,725 |
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Buildings and improvements |
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1,212,853 |
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1,235,600 |
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Accumulated depreciation and amortization |
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(405,884 |
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(387,751 |
) |
Operating real estate property, net |
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925,178 |
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969,574 |
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Properties held-for-sale, net of accumulated depreciation: 2024— |
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670 |
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18,391 |
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Real property investments, net |
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925,848 |
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987,965 |
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Financing receivables,(1) net of credit loss reserve: 2024— |
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357,867 |
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196,032 |
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Mortgage loans receivable, net of credit loss reserve: 2024— |
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312,583 |
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477,266 |
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Real estate investments, net |
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1,596,298 |
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1,661,263 |
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Notes receivable, net of credit loss reserve: 2024— |
|
|
47,240 |
|
|
|
60,490 |
|
Investments in unconsolidated joint ventures |
|
|
30,602 |
|
|
|
19,340 |
|
Investments, net |
|
|
1,674,140 |
|
|
|
1,741,093 |
|
|
|
|
|
|
|
|
||
Other assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
9,414 |
|
|
|
20,286 |
|
Debt issue costs related to revolving line of credit |
|
|
1,410 |
|
|
|
1,557 |
|
Interest receivable |
|
|
60,258 |
|
|
|
53,960 |
|
Straight-line rent receivable |
|
|
21,505 |
|
|
|
19,626 |
|
Lease incentives |
|
|
3,522 |
|
|
|
2,607 |
|
Prepaid expenses and other assets |
|
|
15,893 |
|
|
|
15,969 |
|
Total assets |
|
$ |
1,786,142 |
|
|
$ |
1,855,098 |
|
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
||
Revolving line of credit |
|
$ |
144,350 |
|
|
$ |
302,250 |
|
Term loans, net of debt issue costs: 2024— |
|
|
99,808 |
|
|
|
99,658 |
|
Senior unsecured notes, net of debt issue costs: 2024— |
|
|
440,442 |
|
|
|
489,409 |
|
Accrued interest |
|
|
3,094 |
|
|
|
3,865 |
|
Accrued expenses and other liabilities |
|
|
45,443 |
|
|
|
43,649 |
|
Total liabilities |
|
|
733,137 |
|
|
|
938,831 |
|
|
|
|
|
|
|
|
||
EQUITY |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock: |
|
|
455 |
|
|
|
430 |
|
Capital in excess of par value |
|
|
1,082,764 |
|
|
|
991,656 |
|
Cumulative net income |
|
|
1,725,435 |
|
|
|
1,634,395 |
|
Accumulated other comprehensive income |
|
|
3,815 |
|
|
|
6,110 |
|
Cumulative distributions |
|
|
(1,851,842 |
) |
|
|
(1,751,312 |
) |
Total LTC Properties, Inc. stockholders’ equity |
|
|
960,627 |
|
|
|
881,279 |
|
Non-controlling interests |
|
|
92,378 |
|
|
|
34,988 |
|
Total equity |
|
|
1,053,005 |
|
|
|
916,267 |
|
Total liabilities and equity |
|
$ |
1,786,142 |
|
|
$ |
1,855,098 |
|
____________________
| (1) | Represents acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as financing receivables on the Consolidated Balance Sheets. |
LTC PROPERTIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, amounts in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Twelve Months Ended |
||||||
|
|
December 31, |
||||||
|
|
2024 |
|
|
2023 |
|
||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
94,879 |
|
|
$ |
91,462 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
36,367 |
|
|
|
37,416 |
|
Stock-based compensation expense |
|
|
9,052 |
|
|
|
8,481 |
|
Impairment loss |
|
|
6,953 |
|
|
|
15,775 |
|
Gain on sale of real estate, net |
|
|
(7,979 |
) |
|
|
(37,296 |
) |
Income from unconsolidated joint ventures |
|
|
(2,442 |
) |
|
|
(1,504 |
) |
Income distributions from unconsolidated joint ventures |
|
|
1,278 |
|
|
|
56 |
|
Straight-line rental (income) adjustment |
|
|
(2,268 |
) |
|
|
2,078 |
|
Exchange of prepayment fee for participating interest in mortgage loan |
|
|
— |
|
|
|
(1,380 |
) |
Adjustment for collectability of rental income and lease incentives |
|
|
321 |
|
|
|
26 |
|
Amortization of lease incentives |
|
|
818 |
|
|
|
773 |
|
Provision for credit losses |
|
|
741 |
|
|
|
5,678 |
|
Application of interest reserve |
|
|
(233 |
) |
|
|
(1,939 |
) |
Amortization of debt issue costs |
|
|
1,059 |
|
|
|
1,205 |
|
Other non-cash items, net |
|
|
95 |
|
|
|
95 |
|
Change in operating assets and liabilities |
|
|
|
|
|
|
||
Lease incentives funded |
|
|
(1,924 |
) |
|
|
(1,627 |
) |
Increase in interest receivable |
|
|
(10,390 |
) |
|
|
(9,283 |
) |
Decrease in accrued interest payable |
|
|
(771 |
) |
|
|
(1,369 |
) |
Net change in other assets and liabilities |
|
|
(387 |
) |
|
|
(4,244 |
) |
Net cash provided by operating activities |
|
|
125,169 |
|
|
|
104,403 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Investment in real estate properties |
|
|
(319 |
) |
|
|
(43,759 |
) |
Investment in real estate capital improvements |
|
|
(13,677 |
) |
|
|
(9,686 |
) |
Proceeds from sale of real estate, net |
|
|
38,871 |
|
|
|
66,274 |
|
Investment in financing receivables |
|
|
(97 |
) |
|
|
(112,712 |
) |
Investment in real estate mortgage loans receivable |
|
|
(21,832 |
) |
|
|
(72,230 |
) |
Principal payments received on mortgage loans receivable |
|
|
85,906 |
|
|
|
10,351 |
|
Investments in unconsolidated joint ventures |
|
|
(11,262 |
) |
|
|
— |
|
Advances and originations under notes receivable |
|
|
(340 |
) |
|
|
(20,377 |
) |
Principal payments received on notes receivable |
|
|
13,434 |
|
|
|
7,227 |
|
Net cash provided by (used in) investing activities |
|
|
90,684 |
|
|
|
(174,912 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings from revolving line of credit |
|
|
27,200 |
|
|
|
277,450 |
|
Repayment of revolving line of credit |
|
|
(185,100 |
) |
|
|
(105,200 |
) |
Principal payments on senior unsecured notes |
|
|
(49,160 |
) |
|
|
(49,160 |
) |
Proceeds from common stock issued |
|
|
83,107 |
|
|
|
53,777 |
|
Distributions paid to stockholders |
|
|
(100,530 |
) |
|
|
(94,764 |
) |
Distributions paid to non-controlling interests |
|
|
(109 |
) |
|
|
— |
|
Financing costs paid |
|
|
(569 |
) |
|
|
(68 |
) |
Cash paid for taxes in lieu of shares upon vesting of restricted stock |
|
|
(1,533 |
) |
|
|
(1,619 |
) |
Other |
|
|
(31 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
|
(226,725 |
) |
|
|
80,416 |
|
(Decrease) increase in cash and cash equivalents |
|
|
(10,872 |
) |
|
|
9,907 |
|
Cash and cash equivalents, beginning of period |
|
|
20,286 |
|
|
|
10,379 |
|
Cash and cash equivalents, end of period |
|
$ |
9,414 |
|
|
$ |
20,286 |
|
See LTC’s most recent Annual Report on Form 10‑K for Supplemental Cash Flow Information
Supplemental Reporting Measures
FFO and FAD are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by
FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), means net income available to common stockholders (computed in accordance with GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or have a different interpretation of the current NAREIT definition from that of the Company; therefore, caution should be exercised when comparing the Company’s FFO to that of other REITs.
We define FAD as FFO excluding the effects of straight-line rent, amortization of lease inducement, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in the consolidated balance sheet. At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. Effective interest method, as required by GAAP, is a technique for calculating the actual interest rate for the term of a mortgage loan based on the initial origination value. Similar to the accounting methodology of straight-line rent, the actual interest rate is higher than the stated interest rate in the early years of the mortgage loan thus creating an effective interest receivable asset included in the interest receivable line item in the consolidated balance sheet and reduces down to zero when, at some point during the mortgage loan, the stated interest rate is higher than the actual interest rate. FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.
While the Company uses FFO and FAD as supplemental performance measures of the cash flow generated by operations and cash available for distribution to stockholders, such measures are not representative of cash generated from operating activities in accordance with GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.
Reconciliation of FFO and FAD
The following table reconciles GAAP net income available to common stockholders to each of NAREIT FFO attributable to common stockholders and FAD (unaudited, amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|||||||||||||
|
|
December 31, |
|
December 31, |
|
|||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP net income available to common stockholders |
|
$ |
17,912 |
|
|
$ |
28,057 |
|
|
$ |
90,358 |
|
|
$ |
89,148 |
|
|
|
Add: Impairment loss |
|
|
6,953 |
|
|
|
3,265 |
|
|
|
6,953 |
|
|
|
15,775 |
|
|
|
Add: Depreciation and amortization |
|
|
9,194 |
|
|
|
9,331 |
|
|
|
36,367 |
|
|
|
37,416 |
|
|
|
Less: Gain on sale of real estate, net |
|
|
(1,097 |
) |
|
|
(16,751 |
) |
|
|
(7,979 |
) |
|
|
(37,296 |
) |
|
|
NAREIT FFO attributable to common stockholders |
|
|
32,962 |
|
|
|
23,902 |
|
|
|
125,699 |
|
|
|
105,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Less) Add: Non-recurring items (1) |
|
|
(3,379 |
) |
|
|
3,561 |
|
|
|
(8,907 |
) |
|
|
3,823 |
|
|
|
FFO attributable to common stockholders, excluding non-recurring items |
|
$ |
29,583 |
|
|
$ |
27,463 |
|
|
$ |
116,792 |
|
|
$ |
108,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NAREIT FFO attributable to common stockholders |
|
$ |
32,962 |
|
|
$ |
23,902 |
|
|
|
125,699 |
|
|
|
105,043 |
|
|
|
Non-cash income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Less) Add: Straight-line rental (income) adjustment |
|
|
(2,829 |
) |
|
|
443 |
|
|
|
(2,268 |
) |
|
|
2,078 |
|
|
|
Add: Amortization of lease incentives |
|
|
192 |
|
|
|
189 |
|
|
|
818 |
|
|
|
799 |
|
|
|
Add: Other non-cash contra-revenue |
|
|
— |
|
|
|
— |
|
|
|
321 |
|
(2 |
) |
|
— |
|
|
Less: Effective interest income |
|
|
(2,184 |
) |
|
|
(215 |
) |
|
|
(8,591 |
) |
|
|
(6,739 |
) |
|
|
Net non-cash income |
|
|
(4,821 |
) |
|
|
417 |
|
|
|
(9,720 |
) |
|
|
(3,862 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-cash expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Add: Non-cash compensation charges |
|
|
2,261 |
|
|
|
2,131 |
|
|
|
9,052 |
|
|
|
8,479 |
|
|
|
(Less) Add: (Recovery) provision for credit losses |
|
|
(201 |
) |
|
|
3,571 |
|
|
|
741 |
|
|
|
5,678 |
|
|
|
Net non-cash expense |
|
|
2,060 |
|
|
|
5,702 |
|
|
|
9,793 |
|
|
|
14,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Funds available for distribution (FAD) |
|
$ |
30,201 |
|
|
$ |
30,021 |
|
|
|
125,772 |
|
|
|
115,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Less: Non-recurring income (1) |
|
|
— |
|
|
|
— |
|
|
|
(7,756 |
) |
|
|
(1,570 |
) |
|
|
Funds available for distribution (FAD), excluding non-recurring items |
|
$ |
30,201 |
|
|
$ |
30,021 |
|
|
$ |
118,016 |
|
|
$ |
113,768 |
|
|
|
____________________
| (1) | See the reconciliation of non-recurring items on the following page for further detail. |
|
(2) |
Represents the straight-line rent receivable write-off of |
Reconciliation of FFO and FAD (continued)
The following table continues the reconciliation between GAAP net income available to common stockholders and each of NAREIT FFO attributable to common stockholders and FAD by reconciling the non-recurring items (unaudited, amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|||||||||||||||
|
|
December 31, |
|
December 31, |
|
|||||||||||||||
|
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
|
|
||||||||
Reconciliation of non-recurring adjustments to NAREIT FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses reserve recorded upon origination |
|
$ |
— |
|
|
$ |
— |
|
$ |
1,635 |
|
(1 |
) |
$ |
1,832 |
|
(1 |
) |
||
Recovery for credit losses related to loan payoffs |
|
|
(511 |
) |
(1 |
) |
|
— |
|
|
(1,738 |
) |
(1 |
) |
|
— |
|
|
||
Provision for credit losses related to effective interest receivable write-off on partial principal paydown |
|
|
— |
|
|
|
— |
|
|
613 |
|
(2 |
) |
|
— |
|
|
|||
Provision for credit losses related to the write-off of loan receivables |
|
|
290 |
|
(3 |
) |
|
3,561 |
(4 |
) |
|
290 |
|
(3 |
) |
|
3,561 |
|
(4 |
) |
(Deduct) Add: Total (recovery) provision for credit losses non-recurring adjustments |
|
|
(221 |
) |
|
|
3,561 |
|
|
800 |
|
|
|
5,393 |
|
|
||||
Add: Straight-line rent receivable write-off |
|
|
— |
|
|
|
— |
|
|
321 |
|
(5 |
) |
|
— |
|
|
|||
Deduct: Mortgage interest income related to the exit IRR received |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1,570 |
) |
(6 |
) |
|||
Deduct: Other income from former operators |
|
|
— |
|
|
|
— |
|
|
(4,052 |
) |
(7 |
) |
|
— |
|
|
|||
Deduct: Rental income related to sold properties |
|
|
— |
|
|
|
— |
|
|
(2,818 |
) |
(8 |
) |
|
— |
|
|
|||
Deduct: One-time additional straight-line income |
|
|
(3,158 |
) |
(9 |
) |
|
— |
|
|
(3,158 |
) |
(9 |
) |
|
— |
|
|
||
Total non-recurring adjustments to NAREIT FFO |
|
$ |
(3,379 |
) |
|
$ |
3,561 |
|
$ |
(8,907 |
) |
|
$ |
3,823 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reconciliation of non-recurring adjustments to FAD: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deduct: Mortgage interest income related to the exit IRR received |
|
$ |
— |
|
|
$ |
— |
|
$ |
(886 |
) |
(10 |
) |
$ |
(1,570 |
) |
(6 |
) |
||
Deduct: Other income from former operators |
|
|
— |
|
|
|
— |
|
|
(4,052 |
) |
(7 |
) |
|
— |
|
|
|||
Deduct: Rental income related to sold properties |
|
|
— |
|
|
|
— |
|
|
(2,818 |
) |
(8 |
) |
|
— |
|
|
|||
Total non-recurring cash adjustments to FAD |
|
$ |
— |
|
|
$ |
— |
|
$ |
(7,756 |
) |
|
$ |
(1,570 |
) |
|
||||
____________________
| (1) | A |
|||
a. Recorded a |
||||
| . |
b. During 2024, LTC recorded a provision for credit losses reserve of |
|||
c. During 2023, LTC recorded a provision for credit losses reserve of |
||||
(2) |
The effective interest receivable write-off related to a partial principal paydown on a mortgage loan. | |||
(3) |
The |
|||
(4) |
The |
|||
(5) |
Represents the straight-line rent receivable write-off related to a lease that converted to fair market rent during 2Q 2024. The straight-line rent write-off is a contra-revenue on the Consolidated Statements of Income. | |||
(6) |
The exit IRR income was received upon the payoff of two mezzanine loans in 2023 and was not previously recorded. | |||
(7) |
Represents income received from former operators related to portfolio transitions in prior years. | |||
(8) |
Represents rent through the initial lease term, which was received upon sale of an 80-unit assisted living community covered under the lease ( |
|||
(9) |
Represents a one-time additional straight-line rental income related to restoring accrual basis accounting for two master leases during the fourth quarter of 2024. | |||
(10) |
The exit IRR income was received upon the payoff of three mortgage loans in 2024. The exit IRR was previously recorded ratably over the term of the loan through effective interest income. | |||
Reconciliation of FFO and FAD (continued)
The following table continues the reconciliation between GAAP net income available to common stockholders and each of NAREIT FFO attributable to common stockholders and FAD (unaudited, amounts in thousands, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||
|
|
December 31, |
|
December 31, |
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAREIT Basic FFO attributable to common stockholders per share |
|
$ |
0.73 |
|
$ |
0.57 |
|
$ |
2.87 |
|
$ |
2.55 |
|
NAREIT Diluted FFO attributable to common stockholders per share |
|
$ |
0.72 |
|
$ |
0.57 |
|
$ |
2.84 |
|
$ |
2.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAREIT Diluted FFO attributable to common stockholders |
|
$ |
33,133 |
|
$ |
23,902 |
|
$ |
126,381 |
|
$ |
105,630 |
|
Weighted average shares used to calculate NAREIT diluted FFO per share attributable to common stockholders |
|
|
45,824 |
|
|
41,787 |
|
|
44,537 |
|
|
41,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic FFO attributable to common stockholders, excluding non-recurring items, per share |
|
$ |
0.66 |
|
$ |
0.66 |
|
$ |
2.67 |
|
$ |
2.64 |
|
Diluted FFO attributable to common stockholders, excluding non-recurring items, per share |
|
$ |
0.65 |
|
$ |
0.66 |
|
$ |
2.64 |
|
$ |
2.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted FFO attributable to common stockholders, excluding non-recurring items |
|
$ |
29,754 |
|
$ |
27,463 |
|
$ |
117,474 |
|
$ |
109,453 |
|
Weighted average shares used to calculate diluted FFO, excluding non-recurring items, per share attributable to common stockholders |
|
|
45,824 |
|
|
41,787 |
|
|
44,537 |
|
|
41,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic FAD per share |
|
$ |
0.67 |
|
$ |
0.72 |
|
$ |
2.88 |
|
$ |
2.79 |
|
Diluted FAD per share |
|
$ |
0.66 |
|
$ |
0.72 |
|
$ |
2.84 |
|
$ |
2.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted FAD |
|
$ |
30,372 |
|
$ |
30,194 |
|
$ |
126,454 |
|
$ |
115,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used to calculate diluted FAD per share |
|
|
45,824 |
|
|
42,046 |
|
|
44,537 |
|
|
41,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic FAD, excluding non-recurring items, per share |
|
$ |
0.67 |
|
$ |
0.72 |
|
$ |
2.70 |
|
$ |
2.76 |
|
Diluted FAD, excluding non-recurring items, per share |
|
$ |
0.66 |
|
$ |
0.72 |
|
$ |
2.67 |
|
$ |
2.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted FAD, excluding non-recurring items |
|
$ |
30,372 |
|
$ |
30,194 |
|
$ |
118,698 |
|
$ |
114,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used to calculate diluted FAD, excluding non-recurring items, per share |
|
|
45,824 |
|
|
42,046 |
|
|
44,537 |
|
|
41,614 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224567017/en/
For more information contact:
Mandi Hogan
(805) 981‑8655
Source: LTC Properties, Inc.
FAQ
What is LTC Properties' total liquidity position as of Q4 2024?
When does LTC expect to implement its initial RIDEA strategy transactions?
How much did LTC Properties raise through stock sales in Q4 2024?
What major asset sales did LTC complete in Q4 2024?
What is the size of LTC's new equity distribution agreement?
