June 18, 2024
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LTC Properties posts fourth-quarter earnings

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LTC Properties, the real estate investment trust based in Westlake Village that chiefly invests in senior living and health care properties, announced its fourth-quarter results for the period ending December 31.

Net income increased by 39.9%, from $12.7 million to $17.8 million or in terms of diluted earnings per common share, from 32 cents to 44 cents.

Fourth quarter results were impacted by higher rental income from several sources including transitioned portfolios as well as completed development projects and annual escalations, the company said in a Feb. 16 press release.

Other factors included higher interest income from financing receivables due to the acquisition of three skilled nursing centers during the third quarter of 2022, higher interest income from mortgage loans, higher interest income and other income due to a mezzanine loan origination and additional funding under working capital loans, lower provisions for credit losses due to more mortgage originations in the fourth quarter of 2021 as compared to the same quarter in 2022 and higher general and administrative expenses due to higher incentive compensation and increases in overall costs due to inflationary pressures, among others.

During the fourth quarter, LTC completed projects including the received payment of Anthem’s $1.5 million temporary rent reduction from May through September 2022 and a return to their previously agreed upon $900,000 per month leading to Anthem’s fully agreed upon rent of $10.8 million, provided $670,000 of abated rent to the same operator for whom they had been providing assistance, paid $5 million into regularly scheduled principal payments under LTC’s senior unsecured notes at a weighted average rate of 4.27% and repaid $21 million under LTC’s revolving line of credit.

On Feb. 21, LTC invested $51.1 million to refinance a senior housing campus in the Atlanta neighborhood of Buckhead. Corso Atlanta will be a luxury 203-unit gated independent living and licensed assisted living and memory care community owned and operated by an existing LTC partner.

LTC is a real estate investment trust investing in senior’s housing and healthcare properties primarily through sale-leasebacks, mortgage financing, joint ventures and structured finance solutions including preferred equity and mezzanine lending. LTC’s investment portfolio includes 215 properties across 29 states with 31 operating partners.

LTC trades on the New York Stock Exchange and shares have remained flat since its earnings release. Shares closed at $37.74 on Feb. 21.