LTC earnings drop as pandemic hurts rent income
LTC Properties, a senior housing and health care real estate investment trust, posted another quarter of low net income when it filed its third quarter financial report on Oct. 29.
The Westlake Villaged-based company announced a net income of $12.1 million, or 31 cents per diluted share, compared to $27.1 million, or 68 cents per diluted share, in the third quarter of 2019.
The company wrote off $5.5 million in non-recurring, non-cash rent receivable balances related to Genesis Healthcare and another operator because LTC transitioned those leases to cash-basis accounting. At the end of the second quarter, Genesis said there was substantial doubt about its continued future.
While LTC continues to collect all contractual rent from Genesis, an unnamed operator did not pay the full rent this quarter. LTC provided the unnamed operator with deferrals and abatements totaling $756,000.
“The world is reeling from the impacts of COVID-19, and LTC and our operators are not immune,” Wendy Simpson, LTC’s chairman and CEO, said in the company’s earnings release.
The company also expanded its holdings during the quarter. LTC invested $6.3 million of preferred equity into an entity that will develop and own a 95-unit assisted living and memory care community in Washington state. It also entered into a preferred equity agreement with an entity that will develop and own a 267-unit independent and assisted living community in Washington, and completed the construction of a 90-bed skilled nursing center in Missouri.