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LTC Reports 2024 Third Quarter Results

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LTC Properties reported strong Q3 2024 results with total revenues increasing to $55.8M from $49.3M year-over-year. Net income available to common stockholders rose to $29.2M ($0.66 per share) from $22.1M ($0.54 per share). The company improved liquidity through balance sheet de-levering, including repayment of $41.6M under its unsecured revolving line of credit and $34.2M in scheduled principal paydowns. Notable transactions include a $26.1M mortgage loan commitment for an Illinois facility, receipt of $29.3M from a Louisiana mortgage loan payoff, and sale of a Texas assisted living community for $8M. Post-quarter, LTC's liquidity stands at $285.5M.

LTC Properties ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi totali che sono aumentati a $55,8 milioni rispetto ai $49,3 milioni dell'anno precedente. L'utile netto disponibile per gli azionisti ordinari è salito a $29,2 milioni ($0,66 per azione) da $22,1 milioni ($0,54 per azione). L'azienda ha migliorato la liquidità attraverso la riduzione dell'indebitamento nel bilancio, compreso il rimborso di $41,6 milioni nel suo prestito rotativo non garantito e $34,2 milioni in rimborsi di capitale programmati. Tra le transazioni più significative ci sono un impegno per un mutuo di $26,1 milioni per una struttura in Illinois, la ricezione di $29,3 milioni da un rimborso di mutuo in Louisiana e la vendita di una comunità di assistenza in Texas per $8 milioni. Dopo il trimestre, la liquidità di LTC ammonta a $285,5 milioni.

LTC Properties informó sobre resultados sólidos en el tercer trimestre de 2024, con ingresos totales que aumentaron a $55.8 millones desde $49.3 millones en comparación con el año anterior. El ingreso neto disponible para los accionistas comunes creció a $29.2 millones ($0.66 por acción) desde $22.1 millones ($0.54 por acción). La compañía mejoró su liquidez mediante la reducción de deuda en su balance, incluyendo el reembolso de $41.6 millones en su línea de crédito rotativa no garantizada y $34.2 millones en pagos de capital programados. Las transacciones destacadas incluyen un compromiso de préstamo hipotecario de $26.1 millones para una instalación en Illinois, la recepción de $29.3 millones de un pago de préstamo hipotecario en Louisiana y la venta de una comunidad de vida asistida en Texas por $8 millones. Después del trimestre, la liquidez de LTC se sitúa en $285.5 millones.

LTC Properties는 2024년 3분기 실적이 강세를 보였으며, 총 수익이 지난해 $49.3M에서 $55.8M으로 증가했다고 보고했습니다. 일반 주주에게 배당 가능한 순이익은 $22.1M($0.54 per 주)에서 $29.2M($0.66 per 주)로 상승했습니다. 회사는 무담보 회전 신용 대출에서 $41.6M을 상환하고, 예정된 원금 상환에서 $34.2M을 포함하여 재무제표 부채 비율을 개선했습니다. 주목할 만한 거래로는 일리노이 시설에 대한 $26.1M의 모기지 대출 약속, 루이지애나 모기지 대출 상환으로 받은 $29.3M, 그리고 텍사스의 지원 생활 커뮤니티를 $8M에 판매한 것이 있습니다. 분기 후 LTC의 유동성은 $285.5M입니다.

LTC Properties a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus totaux augmentant à 55,8 millions de dollars, contre 49,3 millions de dollars l'année précédente. Le revenu net disponible pour les actionnaires ordinaires a augmenté à 29,2 millions de dollars (0,66 $ par action) contre 22,1 millions de dollars (0,54 $ par action). L'entreprise a amélioré sa liquidité grâce à une réduction de son endettement, y compris le remboursement de 41,6 millions de dollars dans le cadre de sa ligne de crédit renouvelable non garantie et de 34,2 millions de dollars en remboursements de capital programmés. Parmi les transactions notables figurent un engagement de prêt hypothécaire de 26,1 millions de dollars pour une installation dans l'Illinois, la réception de 29,3 millions de dollars suite à un remboursement de prêt hypothécaire en Louisiane, et la vente d'une communauté de vie assistée au Texas pour 8 millions de dollars. Après le trimestre, la liquidité de LTC s'élève à 285,5 millions de dollars.

LTC Properties meldete starke Ergebnisse für das dritte Quartal 2024, mit Gesamteinnahmen, die von $49.3 Millionen auf $55.8 Millionen im Jahresvergleich gestiegen sind. Der Nettogewinn, der den Stammaktionären zur Verfügung steht, stieg von $22.1 Millionen ($0.54 pro Aktie) auf $29.2 Millionen ($0.66 pro Aktie). Das Unternehmen verbesserte seine Liquidität durch die Reduzierung von Verbindlichkeiten in der Bilanz, einschließlich der Rückzahlung von $41.6 Millionen im Rahmen seiner unbesicherten revolvierenden Kreditlinie und $34.2 Millionen in geplanten Kapitalrückzahlungen. Bedeutende Transaktionen sind ein $26.1 Millionen Hypothekendarlehenszusagen für eine Einrichtung in Illinois, der Erhalt von $29.3 Millionen aus einer Hypothekenrückzahlung in Louisiana und der Verkauf einer betreuten Wohneinheit in Texas für $8 Millionen. Nach dem Quartal beträgt die Liquidität von LTC $285.5 Millionen.

Positive
  • Revenue increased 13.1% YoY to $55.8M
  • Net income rose 32.3% YoY to $29.2M
  • Diluted EPS increased to $0.66 from $0.54
  • Significant debt reduction improving balance sheet strength
  • Liquidity position improved to $285.5M post-quarter
Negative
  • Higher general and administrative expenses
  • Decrease in revenue from sold properties

Insights

The Q3 2024 results show significant financial improvement for LTC Properties. Total revenues increased to $55.8 million, up from $49.3 million in Q3 2023, while diluted earnings per share rose to $0.66 from $0.54. The company has strategically strengthened its balance sheet through multiple actions: paying down debt, receiving substantial loan payoffs and raising capital through equity sales.

Key financial moves include receiving $29.3 million from a mortgage loan payoff, selling properties for gains and raising $54.7 million through stock sales. The company's improved liquidity position of $285.5 million post-quarter end provides substantial dry powder for future investments. The balanced portfolio mix of 50% seniors housing and 50% skilled nursing properties demonstrates prudent diversification.

The strategic portfolio management and capital allocation decisions demonstrate strong execution in the seniors housing sector. The new $26.1 million mortgage loan commitment for an Illinois facility shows continued growth opportunities, while the 9.5% IRR indicates attractive returns in the current market environment.

The company's active portfolio optimization through strategic sales and loan payoffs, combined with debt reduction, positions LTC well for future acquisitions. The expansion of their credit facility by $25 million provides additional financial flexibility. The successful execution of their at-the-market equity program reflects positive market reception and helps maintain a conservative leverage profile.

-- Company Significantly Improves Liquidity through Balance Sheet De-levering --

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)-- LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for the third quarter ended September 30, 2024.

 

 

Three Months Ended

 

 

September 30,

(unaudited, amounts in thousands, except per share data)

 

2024

 

2023

Total revenues

 

$

55,783

 

$

49,303

Net income available to common stockholders

 

$

29,165

 

22,050

Diluted earnings per common share

 

$

0.66

 

$

0.54

 

 

 

 

 

 

 

NAREIT funds from operations ("FFO") attributable to common stockholders(1)

 

$

34,556

 

$

26,679

NAREIT diluted FFO per common share(1)

 

$

0.78

 

$

0.65

 

 

 

 

 

 

 

FFO attributable to common stockholders, excluding non-recurring items(1)

 

$

30,383

 

$

26,679

Diluted FFO attributable to common stockholders, excluding non-recurring items, per share(1)

 

$

0.68

 

$

0.65

 

 

 

 

 

 

 

Funds available for distribution ("FAD")(1)

 

$

34,721

 

$

27,213

Diluted FAD per share(1)

 

$

0.78

 

$

0.66

 

 

 

 

 

 

 

FAD, excluding non-recurring items(1)

 

$

30,228

 

$

27,213

Diluted FAD, excluding non-recurring items, per share(1)

 

$

0.68

 

$

0.66

_______________
(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 third quarter, and its Form 10-Q, 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.

“Our third quarter was positive, and we are optimistic about the future. By de-levering our balance sheet, we are building sufficient growth capital to take advantage of investment opportunities as they arise,” said Wendy Simpson, LTC’s Chairman and Chief Executive Officer. “The seniors housing and care market continues to improve, and LTC is strategically positioned to generate accretive growth. I believe we have the right team, the right strategy, and the access to capital needed to ensure a bright future.”

Third Quarter 2024 Financial Results:

  • Total revenues increased as the result of income received from previously transitioned portfolios, higher income from loan originations, construction loan funding in 2024, and rent increases, partially offset by lower revenue from sold properties.
  • Expenses declined primarily due to a decrease in interest expense related to paying down the Company’s unsecured revolving line of credit and scheduled principal paydowns on its senior unsecured notes, and depreciation expense, partially offset by an increase in general and administrative expense.
  • Income from unconsolidated joint ventures increased as a result of a 2024 mortgage loan origination.
  • Income allocated to non-controlling interests increased due to consolidated joint ventures formed during 2024.

2024 Third Quarter Portfolio Update:

Investment

  • As previously announced, committed to fund a $26.1 million mortgage loan for the construction of a 116-unit independent living, assisted living and memory care community in Illinois. The borrower contributed $12.3 million of equity to initially fund the construction. The equity is expected to be fully drawn in early 2025, then LTC will begin funding the commitment. The loan term is approximately six years at a current rate of 9.0% and an IRR of 9.5%.

Mortgage Loan Payoff, Asset Sale, and Note Receivable Paydown

  • Received $29.3 million from the payoff of a mortgage loan secured by a 189-bed skilled nursing center in Louisiana;
  • As previously announced, sold an 80-unit assisted living community in Texas to the operator for $8.0 million and recorded a gain on sale of $3.6 million. The operator paid $441,000 in rent through the remainder of the initial lease term; and
  • As previously announced, received $10.4 million from paydown of the HMG Healthcare working capital note.

Other Revenue

  • Recorded $4.1 million of income from former operators related to portfolio transitions in prior years.

Debt and Equity

  • Exercised the accordion feature under the Company’s credit agreement increasing its unsecured revolving line of credit by $25.0 million, bringing total commitments to $525.0 million ($425.0 million unsecured revolving line of credit and $100.0 million of term loans);
  • Repaid $41.6 million under its unsecured revolving line of credit;
  • Repaid $34.2 million in scheduled principal paydowns on its senior unsecured notes; and
  • Sold 1,543,100 shares of common stock for $54.7 million in net proceeds under its equity distribution agreements.

Activities Subsequent to September 30, 2024:

  • Received the payoff of a $51.1 million mortgage loan secured by a 203-unit independent living, assisted living and memory care community in Georgia;
  • Sold a closed property in Colorado for $5.3 million and anticipate recording a gain on sale of approximately $1.1 million in the fourth quarter;
  • Sold 226,370 shares of common stock for $7.9 million in net proceeds under its equity distribution agreements; and
  • Repaid $93.8 million under the Company’s unsecured revolving line of credit.

Balance Sheet and Liquidity:

At September 30, 2024, LTC’s liquidity was $229.5 million, including $35.0 million of cash on hand, $184.9 million available under the Company’s unsecured revolving line of credit, and the potential to access the capital markets through the issuance of $9.6 million of common stock under LTC’s equity distribution agreements.

Subsequent to September 30, 2024, LTC’s current liquidity is $285.5 million, including $5.4 million of cash on hand, $278.6 million available under its unsecured revolving line of credit, and the potential to access the capital markets through the issuance of $1.5 million of common stock under LTC’s equity distribution agreements.

Conference Call Information

LTC will conduct a conference call on Tuesday, October 29, 2024, 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 September 30, 2024. The conference call is accessible by telephone and the internet. Interested parties may access the live conference call via the following:

Webcast

 

www.LTCreit.com

USA Toll-Free Number

 

(888) 506‑0062

International Number

 

(973) 528‑0011

Conference Access Code

 

235941

Additionally, an audio replay of the call will be available one hour after the live call through November 12, 2024 via the following:

USA Toll-Free Number

 

(877) 481‑4010

International Number

 

(919) 882-2331

Conference Number

 

51263

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 29 operating partners. Based on its gross real estate investments, LTC’s investment portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.

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, its subsequent Quarterly Reports on Form 10‑Q, 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

(unaudited, amounts in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

32,258

 

 

$

31,589

 

 

$

97,464

 

 

$

94,861

 

Interest income from financing receivables(1)

 

 

7,001

 

 

 

3,832

 

 

 

14,661

 

 

 

11,413

 

Interest income from mortgage loans

 

 

10,733

 

 

 

12,247

 

 

 

35,842

 

 

 

35,417

 

Interest and other income

 

 

5,791

 

 

 

1,635

 

 

 

9,298

 

 

 

5,358

 

Total revenues

 

 

55,783

 

 

 

49,303

 

 

 

157,265

 

 

 

147,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,023

 

 

 

12,674

 

 

 

31,971

 

 

 

34,595

 

Depreciation and amortization

 

 

9,054

 

 

 

9,499

 

 

 

27,173

 

 

 

28,085

 

Impairment loss

 

 

 

 

 

 

 

 

 

 

 

12,510

 

Provision for credit losses

 

 

215

 

 

 

189

 

 

 

942

 

 

 

2,107

 

Transaction costs

 

 

33

 

 

 

329

 

 

 

679

 

 

 

537

 

Property tax expense

 

 

3,186

 

 

 

3,271

 

 

 

9,816

 

 

 

9,751

 

General and administrative expenses

 

 

6,765

 

 

 

5,959

 

 

 

20,016

 

 

 

18,344

 

Total expenses

 

 

29,276

 

 

 

31,921

 

 

 

90,597

 

 

 

105,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of real estate, net

 

 

3,663

 

 

 

4,870

 

 

 

6,882

 

 

 

20,545

 

Operating income

 

 

30,170

 

 

 

22,252

 

 

 

73,550

 

 

 

61,665

 

Income from unconsolidated joint ventures

 

 

692

 

 

 

375

 

 

 

1,739

 

 

 

1,127

 

Net income

 

 

30,862

 

 

 

22,627

 

 

 

75,289

 

 

 

62,792

 

Income allocated to non-controlling interests

 

 

(1,496

)

 

 

(430

)

 

 

(2,332

)

 

 

(1,287

)

Net income attributable to LTC Properties, Inc.

 

 

29,366

 

 

 

22,197

 

 

 

72,957

 

 

 

61,505

 

Income allocated to participating securities

 

 

(201

)

 

 

(147

)

 

 

(511

)

 

 

(440

)

Net income available to common stockholders

 

$

29,165

 

 

$

22,050

 

 

$

72,446

 

 

$

61,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

$

0.54

 

 

$

1.67

 

 

$

1.48

 

Diluted

 

$

0.66

 

 

$

0.54

 

 

$

1.65

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to calculate earnings per

 

 

 

 

 

 

 

 

 

 

 

 

common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

43,868

 

 

 

41,153

 

 

 

43,313

 

 

 

41,127

 

Diluted

 

 

44,394

 

 

 

41,211

 

 

 

43,839

 

 

 

41,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared and paid per common share

 

$

0.57

 

 

$

0.57

 

 

$

1.71

 

 

$

1.71

 

_______________
(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.

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

September 30, 2024

 

December 31, 2023

 

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

Land

 

$

118,382

 

 

$

121,725

 

Buildings and improvements

 

 

1,217,954

 

 

 

1,235,600

 

Accumulated depreciation and amortization

 

 

(398,080

)

 

 

(387,751

)

Operating real estate property, net

 

 

938,256

 

 

 

969,574

 

Properties held-for-sale, net of accumulated depreciation: 2024—$1,794; 2023—$3,616

 

 

4,058

 

 

 

18,391

 

Real property investments, net

 

 

942,314

 

 

 

987,965

 

Financing receivables,(1) net of credit loss reserve: 2024—$3,615; 2023—$1,980

 

 

357,889

 

 

 

196,032

 

Mortgage loans receivable, net of credit loss reserve: 2024—$3,638; 2023—$4,814

 

 

360,776

 

 

 

477,266

 

Real estate investments, net

 

 

1,660,979

 

 

 

1,661,263

 

Notes receivable, net of credit loss reserve: 2024—$482; 2023—$611

 

 

47,691

 

 

 

60,490

 

Investments in unconsolidated joint ventures

 

 

30,602

 

 

 

19,340

 

Investments, net

 

 

1,739,272

 

 

 

1,741,093

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

35,040

 

 

 

20,286

 

Debt issue costs related to revolving line of credit

 

 

1,548

 

 

 

1,557

 

Interest receivable

 

 

58,421

 

 

 

53,960

 

Straight-line rent receivable

 

 

18,677

 

 

 

19,626

 

Lease incentives

 

 

3,584

 

 

 

2,607

 

Prepaid expenses and other assets

 

 

15,095

 

 

 

15,969

 

Total assets

 

$

1,871,637

 

 

$

1,855,098

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Revolving line of credit

 

$

240,150

 

 

$

302,250

 

Term loans, net of debt issue costs: 2024—$229; 2023—$342

 

 

99,771

 

 

 

99,658

 

Senior unsecured notes, net of debt issue costs: 2024—$1,098; 2023—$1,251

 

 

445,402

 

 

 

489,409

 

Accrued interest

 

 

3,757

 

 

 

3,865

 

Accrued expenses and other liabilities

 

 

41,120

 

 

 

43,649

 

Total liabilities

 

 

830,200

 

 

 

938,831

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2024—45,034; 2023—43,022

 

 

450

 

 

 

430

 

Capital in excess of par value

 

 

1,062,374

 

 

 

991,656

 

Cumulative net income

 

 

1,707,352

 

 

 

1,634,395

 

Accumulated other comprehensive income

 

 

3,639

 

 

 

6,110

 

Cumulative distributions

 

 

(1,825,996

)

 

 

(1,751,312

)

Total LTC Properties, Inc. stockholders’ equity

 

 

947,819

 

 

 

881,279

 

Non-controlling interests

 

 

93,618

 

 

 

34,988

 

Total equity

 

 

1,041,437

 

 

 

916,267

 

Total liabilities and equity

 

$

1,871,637

 

 

$

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)

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30,

 

 

2024

 

2023

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

75,289

 

 

$

62,792

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

27,173

 

 

 

28,085

 

Stock-based compensation expense

 

 

6,791

 

 

 

6,349

 

Impairment loss

 

 

 

 

 

12,510

 

Gain on sale of real estate, net

 

 

(6,882

)

 

 

(20,545

)

Income from unconsolidated joint ventures

 

 

(1,739

)

 

 

(1,127

)

Income distributions from unconsolidated joint ventures

 

 

839

 

 

 

 

Straight-line rental adjustment

 

 

561

 

 

 

1,635

 

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

 

 

626

 

 

 

584

 

Provision for credit losses

 

 

942

 

 

 

2,107

 

Application of interest reserve

 

 

(233

)

 

 

(1,788

)

Amortization of debt issue costs

 

 

791

 

 

 

900

 

Other non-cash items, net

 

 

71

 

 

 

71

 

Change in operating assets and liabilities

 

 

 

 

 

 

Lease incentives funded

 

 

(1,794

)

 

 

(1,023

)

Increase in interest receivable

 

 

(7,124

)

 

 

(8,605

)

Decrease in accrued interest payable

 

 

(108

)

 

 

(1,341

)

Net change in other assets and liabilities

 

 

(3,645

)

 

 

(318

)

Net cash provided by operating activities

 

 

91,879

 

 

 

78,932

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Investment in real estate properties

 

 

(319

)

 

 

(43,759

)

Investment in real estate capital improvements

 

 

(9,908

)

 

 

(5,053

)

Proceeds from sale of real estate, net

 

 

33,641

 

 

 

51,410

 

Investment in financing receivables

 

 

(97

)

 

 

(112,712

)

Investment in real estate mortgage loans receivable

 

 

(19,078

)

 

 

(72,260

)

Principal payments received on mortgage loans receivable

 

 

34,474

 

 

 

301

 

Investments in unconsolidated joint ventures

 

 

(11,262

)

 

 

 

Advances and originations under notes receivable

 

 

(340

)

 

 

(19,258

)

Principal payments received on notes receivable

 

 

13,268

 

 

 

7,077

 

Net cash provided by (used in) investing activities

 

 

40,379

 

 

 

(194,254

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings from revolving line of credit

 

 

19,200

 

 

 

274,450

 

Repayment of revolving line of credit

 

 

(81,300

)

 

 

(42,200

)

Principal payments on senior unsecured notes

 

 

(44,160

)

 

 

(44,160

)

Proceeds from common stock issued

 

 

65,629

 

 

 

1,777

 

Distributions paid to stockholders

 

 

(74,684

)

 

 

(70,767

)

Distributions paid to non-controlling interests

 

 

(109

)

 

 

(1,217

)

Financing costs paid

 

 

(516

)

 

 

(19

)

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

 

 

(117,504

)

 

 

116,245

 

Increase in cash and cash equivalents

 

 

14,754

 

 

 

923

 

Cash and cash equivalents, beginning of period

 

 

20,286

 

 

 

10,379

 

Cash and cash equivalents, end of period

 

$

35,040

 

 

$

11,302

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Interest paid

 

$

31,288

 

 

$

35,036

 

Non-cash investing and financing transactions:

 

 

 

 

 

 

Contribution from non-controlling interest

 

$

61,025

 

 

$

12,964

 

Investment in financing receivables

 

$

(163,460

)

 

$

 

Exchange of mezzanine loan and related prepayment fee for participating interest in mortgage loan

 

$

 

 

$

(8,841

)

Exchange of mortgage loans for controlling interests in joint ventures accounted for as financing receivables

 

$

102,435

 

 

$

 

Reserves withheld at financing and mortgage loan receivable origination

 

$

 

 

$

(5,147

)

Accretion of interest reserve recorded as mortgage loan receivable

 

$

233

 

 

$

1,788

 

Decrease in fair value of interest rate swap agreements

 

$

(2,471

)

 

$

(123

)

Distributions paid to non-controlling interests

 

$

2,313

 

 

$

 

Distributions paid to non-controlling interests related to property sale

 

$

2,305

 

 

$

 

Mortgage loan receivable reserve withheld at origination

 

$

 

 

$

1,506

 

Supplemental Reporting Measures

FFO and FAD are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by U.S. generally accepted accounting principles (“GAAP”). Investors, analysts and the Company use FFO and FAD as supplemental measures of operating performance. The Company believes FFO and FAD are helpful in evaluating the operating performance of a REIT. Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. We believe that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO and FAD facilitate like comparisons of operating performance between periods. Occasionally, the Company may exclude non-recurring items from FFO and FAD in order to allow investors, analysts and management to compare the Company’s operating performance on a consistent basis without having to account for differences caused by unanticipated items.

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

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income available to common stockholders

 

$

29,165

 

 

$

22,050

 

 

$

72,446

 

 

$

61,065

 

 

Add: Impairment loss

 

 

 

 

 

 

 

 

 

 

 

12,510

 

 

Add: Depreciation and amortization

 

 

9,054

 

 

 

9,499

 

 

 

27,173

 

 

 

28,085

 

 

Less: Gain on sale of real estate, net

 

 

(3,663

)

 

 

(4,870

)

 

 

(6,882

)

 

 

(20,545

)

 

NAREIT FFO attributable to common stockholders

 

 

34,556

 

 

 

26,679

 

 

 

92,737

 

 

 

81,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Less) Add: Non-recurring items

 

 

(4,173

)

(1)

 

 

 

 

(5,528

)

(1)

 

262

 

(1)

FFO attributable to common stockholders, excluding non-recurring items

 

$

30,383

 

 

$

26,679

 

 

$

87,209

 

 

$

81,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAREIT FFO attributable to common stockholders

 

$

34,556

 

 

$

26,679

 

 

 

92,737

 

 

 

81,115

 

 

Non-cash income:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Less) Add: straight-line rental (income) adjustment

 

 

(37

)

 

 

747

 

 

 

561

 

 

 

1,635

 

 

Add: amortization of lease incentives

 

 

188

 

 

 

171

 

 

 

626

 

 

 

610

 

 

Add: Other non-cash contra-revenue

 

 

 

 

 

 

 

 

321

 

(2)

 

 

 

Less: Effective interest income

 

 

(2,470

)

 

 

(2,696

)

 

 

(6,407

)

 

 

(6,524

)

 

Net non-cash income

 

 

(2,319

)

 

 

(1,778

)

 

 

(4,899

)

 

 

(4,279

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Add: Non-cash compensation charges

 

 

2,269

 

 

 

2,123

 

 

 

6,791

 

 

 

6,348

 

 

Add: Provision for credit losses

 

 

215

 

(3)

 

189

 

 

 

942

 

(3)

 

2,107

 

(3)

Net non-cash expense

 

 

2,484

 

 

 

2,312

 

 

 

7,733

 

 

 

8,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds available for distribution (FAD)

 

$

34,721

 

 

$

27,213

 

 

 

95,571

 

 

 

85,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Non-recurring income

 

 

(4,493

)

(1)

 

 

 

 

(7,756

)

(1)

 

(1,570

)

(1)

Funds available for distribution (FAD), excluding non-recurring items

 

$

30,228

 

 

$

27,213

 

 

$

87,815

 

 

$

83,721

 

 

_______________

(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 $321 related to converting a lease to fair market rent.

(3)

Includes provision for credit losses reserve recorded upon origination of acquisitions accounted for as financing receivables, and mortgage loans, offset by mortgage loan payoffs. See the reconciliation of non-recurring items on the following page for further detail.

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

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

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)

Provision for credit losses recovery related to loan payoffs

 

 

(293

)

(1)

 

 

 

(1,227

)

(1)

 

 

 

Provision for credit losses related to effective interest receivable write-off on partial principal paydown

 

 

613

 

(2)

 

 

 

613

 

(2)

 

 

 

Add: Total provision for credit losses non-recurring adjustments

 

 

320

 

 

 

 

 

1,021

 

 

 

1,832

 

 

Add: Straight-line rent receivable write-off

 

 

 

 

 

 

 

321

 

(5)

 

 

 

Deduct: Mortgage interest income related to the exit IRR received

 

 

 

 

 

 

 

 

 

 

(1,570

)

(8)

Deduct: Other income from former operators

 

 

(4,052

)

(3)

 

 

 

(4,052

)

(3)

 

 

 

Deduct: Rental income related to sold properties

 

 

(441

)

(4)

 

 

 

(2,818

)

(6)

 

 

 

Total non-recurring adjustments to NAREIT FFO

 

$

(4,173

)

 

$

 

$

(5,528

)

 

$

262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of non-recurring adjustments to FAD:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deduct: Mortgage interest income related to the exit IRR received

 

$

 

 

$

 

$

(886

)

(7)

$

(1,570

)

(8)

Deduct: Other income from former operators

 

 

(4,052

)

(3)

 

 

 

(4,052

)

(3)

 

 

 

Deduct: Rental income related to sold properties

 

 

(441

)

(4)

 

 

 

(2,818

)

(6)

 

 

 

Total non-recurring cash adjustments to FAD

 

$

(4,493

)

 

$

 

$

(7,756

)

 

$

(1,570

)

 

_______________

(1)

A 1% credit loss reserve is taken upon origination of financing transactions, then decreased as the balance is paid down through scheduled principal payments and payoffs.

  1. Recorded a $293 provision for credit losses recovery related to a $29,347 mortgage loan paid off during 3Q 2024.
  2. During 2024, LTC recorded a provision for credit losses reserve of $1,635 related to the $163,460 acquisition of properties accounted for as financing receivables, offset by a provision for credit losses recovery of $1,227 related to the four mortgage loan payoffs totaling $131,781.
  3. During 2023, LTC recorded a provision for credit losses reserve of $1,832 related to the $121,321 acquisition of properties accounted for as financing receivables and originated two mortgage loans totaling $61,861.
(2)

The effective interest receivable write-off related to a partial principal paydown on a mortgage loan.

(3)

Represents income received from former operators related to portfolio transitions in prior years.

(4)

Represents rent through the initial lease term, which was received upon sale of an 80-unit assisted living community covered under the lease.

(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)

Represents (3) from above and the rent credit received in connection with the sale of a 110-unit assisted living community in Wisconsin. The rent credit was provided to the operator during new construction lease-up.

(7)

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.

(8)

The exit IRR income was received upon the payoff of two mezzanine loans in 2023 and was not previously recorded.

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

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAREIT Basic FFO attributable to common stockholders per share

 

$

0.79

 

$

0.65

 

$

2.14

 

$

1.97

 

NAREIT Diluted FFO attributable to common stockholders per share

 

$

0.78

 

$

0.65

 

$

2.11

 

$

1.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAREIT Diluted FFO attributable to common stockholders

 

$

34,757

 

$

26,826

 

$

93,248

 

$

81,555

 

Weighted average shares used to calculate NAREIT diluted FFO per share attributable to common stockholders

 

 

44,696

 

 

41,469

 

 

44,133

 

 

41,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic FFO attributable to common stockholders, excluding non-recurring items, per share

 

$

0.69

 

$

0.65

 

$

2.01

 

$

1.98

 

Diluted FFO attributable to common stockholders, excluding non-recurring items, per share

 

$

0.68

 

$

0.65

 

$

1.99

 

$

1.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO attributable to common stockholders, excluding non-recurring items

 

$

30,584

 

$

26,826

 

$

87,720

 

$

81,817

 

Weighted average shares used to calculate diluted FFO, excluding non-recurring items, per share attributable to common stockholders

 

 

44,696

 

 

41,469

 

 

44,133

 

 

41,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic FAD per share

 

$

0.79

 

$

0.66

 

$

2.21

 

$

2.07

 

Diluted FAD per share

 

$

0.78

 

$

0.66

 

$

2.18

 

$

2.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FAD

 

$

34,922

 

$

27,360

 

$

96,082

 

$

85,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to calculate diluted FAD per share

 

 

44,696

 

 

41,469

 

 

44,133

 

 

41,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic FAD, excluding non-recurring items, per share

 

$

0.69

 

$

0.66

 

$

2.03

 

$

2.04

 

Diluted FAD, excluding non-recurring items, per share

 

$

0.68

 

$

0.66

 

$

2.00

 

$

2.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FAD, excluding non-recurring items

 

$

30,429

 

$

27,360

 

$

88,326

 

$

84,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to calculate diluted FAD, excluding non-recurring items, per share

 

 

44,696

 

 

41,469

 

 

44,133

 

 

41,440

 

 

For more information contact:

Mandi Hogan

(805) 981‑8655

Source: LTC Properties, Inc.

FAQ

What was LTC Properties' revenue in Q3 2024?

LTC Properties (NYSE: LTC) reported total revenues of $55.783 million in Q3 2024, up from $49.303 million in Q3 2023.

How much did LTC's earnings per share increase in Q3 2024?

LTC's diluted earnings per common share increased to $0.66 in Q3 2024, compared to $0.54 in Q3 2023.

What major debt reduction did LTC achieve in Q3 2024?

LTC repaid $41.6 million under its unsecured revolving line of credit and $34.2 million in scheduled principal paydowns on its senior unsecured notes.

What is LTC's current liquidity position after Q3 2024?

After Q3 2024, LTC's liquidity is $285.5 million, including $5.4 million cash on hand and $278.6 million available under its unsecured revolving line of credit.

LTC Properties, Inc.

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