LTC Properties reports income jump in fourth quarter
LTC Properties saw steady returns and a higher net income than a year ago when it reported its finances for the fourth quarter of 2020.
The Westlake Village-based real estate investment trust, which focuses on senior housing and health care properties, reported net income of $17.5 million, or 45 cents per diluted share, for 2020’s fourth quarter, a 37.9% jump from the same quarter in 2019.
The company’s funds from operation remained relatively stable year-over-year, ignoring a $2.1 million one-time-gain from property insurance proceeds related to a previously sold property. LTC Properties collected 98% of its contractual rent and mortgage interest, saw decreased rental income from abated and deferred rent and faces a $3 million impairment loss related to a memory care community located in Colorado.
LTC Properties also reduced planned 2021 rent escalations by half to support operators during the pandemic. The rent escalation reduction, given in the form of a rent credit, is expected to impact the company’s revenue by more than $500,000, while having a $1.3 million impact on 2021 funds available for distribution.