January 21, 2023
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LTC Properties beats analyst projections


Westlake Village-based LTC Properties beat analyst projections of rental revenue and funds from operations per share in its fourth quarter earnings report.

LTC is a real estate investment trust that buys facilities such as nursing homes. Investors in such companies often use funds from operations as a substitute for earnings per share because it takes depreciation and amortization into account.

The publicly traded real estate and investment trust earned $30.76 million in rental income, up from $26.47 million in the fourth quarter of 2014, beating analyst projections by $1.49 million. LTC Properties funds from operations per common share were 74 cents in the fourth quarter, up from 64 cents in 2014, outperforming projections by a cent. The increase in funds from operations were due to higher revenues from mortgage loans, acquisitions, completed developments and additional investment activity, the company said.

But net income was down to $17.95 million for the fourth quarter, dropping from $21 million last year. The drop in net income was due to a $2.3 million impairment charge related to the sale of an assisted living community, LTC Properties said.

LTC invests primarily in senior housing and long-term care properties through acquisitions, development, mortgage loans and other investments.

In the fourth quarter, LTC invested in two skilled nursing properties in Texas totaling 254 beds for $23 million, a 118-bed behavioral health care hospital in Nevada for $9.3 million and a parcel of land in Illinois for $2.8 million. It plans to build a 66-unit, $14.8 million memory care facility on that land.

In 2016, LTC bought a newly constructed 126-bed skilled nursing property in Texas for $16 million.

As of Dec. 31, 2015 LTC had 224 investments located in 30 states, including 104 assisted living and 100 skilled nursing properties.

The company recorded a monthly dividend of 18 cents. Shares decreased a cent to $43.12 when the market closed on Feb. 22.

• Contact Alex Kacik at akacik@pacbiztimes.com.