分组1 - LTC Properties reported quarterly funds from operations (FFO) of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share, and down from $0.69 per share a year ago, representing an FFO surprise of -1.52% [1] - The company posted revenues of $31.44 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.04%, compared to year-ago revenues of $33.55 million [2] - Over the last four quarters, LTC has surpassed consensus FFO estimates two times and topped consensus revenue estimates just once [2] 分组2 - The current consensus FFO estimate for the coming quarter is $0.67 on revenues of $32.73 million, and for the current fiscal year, it is $2.68 on revenues of $134.99 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The estimate revisions trend for LTC is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

FIRST QUARTER 2025 LEADERSHIP MANDI HOGAN SVP, Marketing WENDY SIMPSON Executive Chairman PAM KESSLER Co-President and Co-CEO CLINT MALIN Co-President and Co-CEO CECE CHIKHALE EVP, Chief Financial Officer, Treasurer and Secretary DAVID BOITANO EVP, Chief Investment Officer GIBSON SATTERWHITE EVP, Asset Management MIKE BOWDEN SVP, Investments BOARD OF DIRECTORS RENEWAL AND SUPPLEMENTAL OPERATING AND FINANCIAL DATA TRANSITION | WENDY SIMPSON | Executive Chairman | | --- | --- | | CORNELIA CHENG | ESG Committe ...

PART I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for Q1 2025 show decreased revenues and net income compared to Q1 2024, with total assets slightly down to $1.78 billion [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $1.775 billion as of March 31, 2025, while liabilities decreased and equity remained stable Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 (audited) | | :--- | :--- | :--- | | **Total Assets** | **$1,775,509** | **$1,786,142** | | Real estate investments, net | $1,588,922 | $1,596,298 | | Cash and cash equivalents | $23,295 | $9,414 | | **Total Liabilities** | **$726,207** | **$733,137** | | Revolving line of credit | $148,850 | $144,350 | | Senior unsecured notes, net | $433,483 | $440,442 | | **Total Equity** | **$1,049,302** | **$1,053,005** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Total revenues decreased to $49.0 million in Q1 2025, resulting in lower net income of $20.5 million compared to the prior year Q1 2025 vs Q1 2024 Income Statement (in thousands, except per share) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $49,031 | $51,366 | | Total Expenses | $30,646 | $30,304 | | Provision for credit losses | $3,052 | $24 | | Gain on sale of real estate, net | $171 | $3,251 | | Net Income Attributable to LTC | $20,680 | $24,230 | | Diluted EPS | $0.45 | $0.56 | | Dividends declared per share | $0.57 | $0.57 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to $29.6 million in Q1 2025, leading to a $13.9 million increase in cash and cash equivalents Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,571 | $21,066 | | Net cash provided by investing activities | $11,629 | $21,209 | | Net cash used in financing activities | $(27,319) | $(53,551) | | **Increase (decrease) in cash** | **$13,881** | **$(11,276)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, real estate portfolio, debt obligations, equity activities, and major operator concentrations, including a post-quarter RIDEA transition - The company invests primarily in seniors housing and health care properties and operates as a single operating segment[21](index=21&type=chunk) - Subsequent to Q1 2025, a 12-property portfolio transitioned to a RIDEA structure, leading to a **$2.7 million** note write-off in Q1[31](index=31&type=chunk)[116](index=116&type=chunk) - Major operators Prestige Healthcare and ALG Senior Living accounted for **16.5%** and **11.8%** of Q1 2025 total revenues, respectively[104](index=104&type=chunk) Commitments as of March 31, 2025 (in thousands) | Commitment Type | Total Commitment | Remaining Commitment | | :--- | :--- | :--- | | Real estate properties | $11,445 | $3,909 | | Accrued incentives and earn-out | $8,500 | $8,500 | | Mortgage loans | $63,620 | $46,948 | | Joint venture investments | $1,438 | $1,438 | | Notes receivable | $560 | $560 | | **Total** | **$85,563** | **$61,355** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, investment strategy including RIDEA transitions, and key metrics like a 31.1% debt-to-asset value and $681.2 million liquidity - The company initiated a strategic shift to the RIDEA structure, transitioning a 12-property portfolio post-quarter-end[128](index=128&type=chunk)[135](index=135&type=chunk) Key Performance Indicators - Credit Strength | Metric | 3/31/25 | 3/31/24 | | :--- | :--- | :--- | | Debt to gross asset value | 31.1% | 38.9% | | Debt to market capitalization ratio | 29.5% | 37.9% | | Interest coverage ratio | 5.0x | 3.5x | NAREIT FFO Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | GAAP net income available to common stockholders | $20,517 | $24,065 | | Add: Depreciation and amortization | $9,162 | $9,095 | | Less: Gain on sale of real estate, net | $(171) | $(3,251) | | **NAREIT FFO attributable to common stockholders** | **$29,508** | **$29,909** | - Total liquidity stood at **$681.2 million** as of March 31, 2025, comprising cash, credit line availability, and Equity Distribution Agreement capacity[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk were reported for the first quarter of 2025, with further details available in the 2024 Form 10-K - There were no material changes in market risk during the first quarter of 2025[204](index=204&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The company's management concluded that disclosure controls and procedures were effective as of the end of the period[205](index=205&type=chunk)[206](index=206&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the quarter[207](index=207&type=chunk) PART II -- Other Information [Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal claims, none of which are expected to materially impact its financial condition or operations - The company is not involved in any legal proceedings that are expected to have a material impact on its financial results[209](index=209&type=chunk) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights potential adverse impacts from legislative changes limiting REIT investments in the healthcare sector - A new risk factor highlights that potential legislation limiting REIT ownership and investment in the health care sector could adversely affect the company's financial condition and operations[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred in Q1 2025, though the company acquired 138,010 shares from employees for tax withholding - No unregistered sales of equity securities were made in Q1 2025[213](index=213&type=chunk) - The company acquired 138,010 shares from employees to cover tax withholding obligations related to vested stock awards[213](index=213&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter[214](index=214&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and Sarbanes-Oxley Act certifications - The report includes certifications from the Co-CEOs and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[217](index=217&type=chunk)

[Q1 2025 Operating Results Overview](index=1&type=section&id=Q1%202025%20Operating%20Results%20Overview) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) LTC Properties reported decreased Q1 2025 revenues and net income, but diluted Core FFO and FAD per share improved, driven by strategic portfolio transitions Q1 2025 Financial Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $49,031 | $51,366 | | Net Income to Common Stockholders | $20,517 | $24,065 | | Diluted EPS | $0.45 | $0.56 | | NAREIT Diluted FFO per Share | $0.65 | $0.69 | | Diluted Core FFO per Share | $0.65 | $0.64 | | Diluted FAD per Share | $0.76 | $0.73 | | Diluted Core FAD per Share | $0.70 | $0.67 | - Management emphasized a strong start to 2025, with **$176 million** in gross assets converted or soon to be converted into a new SHOP (seniors housing operating portfolio) The company is focused on growth, supported by a new CIO, access to capital, and a **$300 million** investment pipeline[5](index=5&type=chunk) [First Quarter 2025 Financial Results Analysis](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results%20Analysis) Q1 2025 financial results show decreased revenues and net income, primarily due to prior year one-time income and increased expenses - Total revenues decreased due to one-time revenue received in 2024, lower revenue from property sales, and mortgage loan payoffs This was partially offset by rent increases and higher income from financing receivables[9](index=9&type=chunk) - Expenses rose mainly because of a higher provision for credit losses from a note write-off during the transition of **12 properties** to the RIDEA structure, and increased incentive compensation[9](index=9&type=chunk) - Income from unconsolidated joint ventures increased significantly due to receiving a **$3.0 million** payment representing a **13%** exit IRR from a preferred equity redemption[9](index=9&type=chunk) - Net income available to common shareholders fell by **$3.5 million**, driven by a lower gain on sale and the revenue and expense changes noted above[9](index=9&type=chunk) [Portfolio and Balance Sheet](index=2&type=section&id=Portfolio%20and%20Balance%20Sheet) [Q1 2025 Portfolio and Capital Activities](index=2&type=section&id=Q1%202025%20Portfolio%20and%20Capital%20Activities) LTC executed strategic Q1 2025 portfolio and capital activities, transitioning properties to SHOP, redeeming preferred equity, and managing debt - Transitioned **12 properties** from a triple-net lease into a new SHOP (seniors housing operating portfolio) under the RIDEA structure, with a combined gross book value of **$176.1 million**[9](index=9&type=chunk) - Redeemed a preferred equity investment for **$16.0 million**, which included a **13%** exit IRR of **$3.0 million** The company also sold **two** non-revenue producing assisted living communities for a total of **$1.67 million**[9](index=9&type=chunk) - During Q1, LTC repaid **$18.9 million** on its line of credit and raised **$1.1 million** from stock sales Subsequent to quarter-end, the company borrowed **$4.5 million**, made **$7.0 million** in scheduled debt paydowns, and raised an additional **$8.5 million** from stock sales[8](index=8&type=chunk)[9](index=9&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, LTC maintained a strong liquidity position of **$681.2 million**, comprising cash, credit line availability, and equity issuance capacity - LTC's total liquidity was **$681.2 million** as of March 31, 2025, comprising: - **$23.3 million** of cash on hand - **$276.2 million** available under the unsecured revolving line of credit - **$381.7 million** capacity to issue common stock under equity distribution agreements[9](index=9&type=chunk) [Full Year 2025 Guidance](index=4&type=section&id=Full%20Year%202025%20Guidance) [2025 Guidance Details](index=4&type=section&id=2025%20Guidance%20Details) LTC introduced full-year 2025 guidance, projecting Diluted Core FFO per share between **$2.65** and **$2.69**, and Diluted Core FAD per share between **$2.78** and **$2.82** Full Year 2025 Guidance Per Share | Metric | Low | High | | :--- | :--- | :--- | | GAAP Net Income Attributable to LTC | $3.38 | $3.42 | | Diluted Core FFO | $2.65 | $2.69 | | Diluted Core FAD | $2.78 | $2.82 | - Key guidance assumptions include: - SHOP NOI for the remaining eight months of 2025 between **$9.4 million** and **$10.3 million** - Full-year 2025 G&A expenses between **$28.6 million** and **$29.5 million**[13](index=13&type=chunk)[31](index=31&type=chunk) - Guidance excludes several one-time, non-recurring items, such as a **$6.5 million** lease termination fee, **$1.1 million** to **$1.5 million** in RIDEA ramp-up costs, and approximately **$1.1 million** for an employee's retirement[13](index=13&type=chunk)[31](index=31&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2025, LTC reported total revenues of **$49.0 million**, down from **$51.4 million**, with net income decreasing to **$20.5 million** from **$24.1 million** Consolidated Statements of Income (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Total revenues** | **$49,031** | **$51,366** | | Total expenses | 30,646 | 30,304 | | Operating income | 18,556 | 24,313 | | **Net income available to common stockholders** | **$20,517** | **$24,065** | | Diluted earnings per common share | $0.45 | $0.56 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, LTC's total assets were **$1.776 billion**, with total liabilities at **$726.2 million** and equity at **$1.049 billion** Consolidated Balance Sheets (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | **$1,775,509** | **$1,786,142** | | Total liabilities | 726,207 | 733,137 | | **Total equity** | **1,049,302** | **1,053,005** | | **Total liabilities and equity** | **$1,775,509** | **$1,786,142** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities increased to **$29.6 million**, with a **$13.9 million** net increase in cash and cash equivalents Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash provided by operating activities | $29,571 | $21,066 | | Net cash provided by investing activities | $11,629 | $21,209 | | Net cash used in financing activities | ($27,319) | ($53,551) | | **Increase (decrease) in cash and cash equivalents** | **$13,881** | **($11,276)** | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Supplemental Reporting Measures (FFO & FAD)](index=9&type=section&id=Supplemental%20Reporting%20Measures%20(FFO%20%26%20FAD)) LTC uses non-GAAP metrics FFO and FAD to supplement GAAP results, adjusting net income for real estate depreciation and non-cash items - FFO and FAD are used as supplemental measures of operating performance, as they exclude the effect of historical cost depreciation, which may not be relevant in evaluating current performance[23](index=23&type=chunk) - FFO is defined by NAREIT as net income excluding gains/losses on real estate sales and impairment write-downs, plus depreciation and amortization[24](index=24&type=chunk) - FAD is defined as FFO adjusted for non-cash items such as straight-line rent, amortization of lease inducement, and non-cash compensation It is used as an indicator of common dividend potential[25](index=25&type=chunk) [Reconciliation of FFO and FAD](index=10&type=section&id=Reconciliation%20of%20FFO%20and%20FAD) For Q1 2025, LTC reconciled GAAP net income of **$20.5 million** to NAREIT FFO of **$29.5 million** and FAD of **$34.7 million** Q1 2025 Reconciliation of Net Income to FFO and FAD (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP net income available to common stockholders** | **$20,517** | **$24,065** | | Depreciation and amortization | 9,162 | 9,095 | | Gain on sale of real estate, net | (171) | (3,251) | | **NAREIT FFO attributable to common stockholders** | **$29,508** | **$29,909** | | Non-recurring items | 405 | (2,377) | | **Core FFO** | **$29,913** | **$27,532** | | **FAD** | **$34,680** | **$31,274** | | Non-recurring income | (2,659) | (2,377) | | **Core FAD** | **$32,021** | **$28,897** | - Non-recurring adjustments to NAREIT FFO in Q1 2025 included a **$3.1 million** write-off of a working capital note for the RIDEA transition and a **$3.0 million** income gain from a JV redemption[28](index=28&type=chunk) [Reconciliation of FFO and FAD Guidance](index=13&type=section&id=Reconciliation%20of%20FFO%20and%20FAD%20Guidance) The company provided full-year 2025 guidance reconciliation, bridging GAAP net income per share to Diluted Core FFO and FAD per share Full Year 2025 Guidance Reconciliation (Per Share) | | Low | High | | :--- | :--- | :--- | | **GAAP net income attributable to LTC** | **$3.38** | **$3.42** | | Adjustments (Depreciation, Gain on Sale, etc.) | (0.92) | (0.92) | | **Diluted NAREIT FFO** | 2.46 | 2.50 | | Non-recurring one-time items | 0.19 | 0.19 | | **Diluted Core FFO** | **$2.65** | **$2.69** | | **Diluted FAD** | 2.67 | 2.71 | | Non-recurring one-time items | 0.11 | 0.11 | | **Diluted Core FAD** | **$2.78** | **$2.82** |

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Financial Data and Key Metrics Changes - Net income available to common shareholders decreased by 10.1% due to a decrease in gain on sale, an increase in impairment losses, and higher general and administrative expenses [13] - FFO excluding non-recurring items improved by 2.1% primarily due to lower interest expense and rent increases from fair market rent resets [14] - On a fully diluted per share basis, FFO was $0.72 compared to $0.57 last year, while core FFO was $0.65 per share in Q4 2024 compared to $0.66 per share in Q4 2023 [15] Business Line Data and Key Metrics Changes - The company is targeting $150 million to $200 million in initial gross investment assets to convert from triple net leases to RIDEA structures [11] - Year one NOI from these conversions is expected to offset initial expenses incurred to build the RIDEA platform [11] Market Data and Key Metrics Changes - Occupancy in the portfolio increased by 740 basis points from January of last year to January of this year [24] - The company expects to receive $4.8 million in rent from market-based rent resets in 2025, up from $3.7 million in 2024 [24] Company Strategy and Development Direction - The company is focused on diversifying its portfolio with respect to operator, geography, property type, and investment vehicle [10] - RIDEA is seen as a transformative strategy that will unlock long-term growth potential [12] - The company aims to complete the search for a new Chief Investment Officer by the second quarter to assist in growing the RIDEA platform [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong growth strategy driven by RIDEA [5] - The company is in one of the best positions for accretive growth in recent years, having diversified its portfolio and shored up its balance sheet [27] Other Important Information - Total liquidity at the end of the last quarter was approximately $680 million, up from $229 million at the end of September 2024 [17] - The company entered into a new $400 million ATM program and terminated a previous $200 million program [15] Q&A Session Summary Question: Details about the operator not renewing - The operator decided to downsize and exit the states where the properties are located, with credit enhancements in place to secure rent payments [31] Question: Neutral earnings impact from transition to RIDEA - The transition accounts for expected one-time expenses related to setting up the platform, with an in-place yield of about 8% [38] Question: Percentage of portfolio expected to be RIDEA vs. net lease by end of 2025 - Currently about 50-50, but expected to increase more towards RIDEA over time [44] Question: G&A expectations for the shop operating platform - Increased G&A will be provided after establishing the platform, but expected increase in NOI from the shop portfolio to offset expenses this year [46] Question: Circumstances leading to restoring accrual accounting for master leases - Strong operational performance led to higher confidence in receiving contractual rent through maturity [98]

RENEWAL AND SUPPLEMENTAL OPERATING AND FINANCIAL DATA TRANSITION FOURTH QUARTER 2024 Founded in 1992, LTC Properties, Inc. (NYSE: LTC) is a self-administered real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including preferred equity and mezzanine lending. LTC's portfolio encompasses Skilled Nursing Facilities (SNF), Assisted Living Communities (ALF), Independent Livi ...

Revenue Sources - Approximately 31.3% of the company's revenues from leases and interest income were generated from three operators during the year ended December 31, 2024[78]. - 63.0% of the company's revenue for the year ended December 31, 2024, was derived from operating lease rentals[80]. - The company is dependent on operators for revenue and cash flow, with substantial reliance on operating lease rentals and interest from financing receivables[69]. - The company has two major operators contributing approximately 25.7% of total revenues, with Prestige Healthcare accounting for 15.6% and ALG Senior Living for 10.1%[327]. Financial Performance - Total revenues for 2024 increased to $209,847,000, up 6.5% from $197,244,000 in 2023[267]. - Rental income rose to $132,278,000 in 2024, compared to $127,350,000 in 2023, reflecting a growth of 3.0%[267]. - Net income attributable to LTC Properties, Inc. for 2024 was $91,040,000, a slight increase from $89,735,000 in 2023[267]. - The company reported a comprehensive income of $92,584,000 for 2024, compared to $88,853,000 in 2023, indicating an increase of 3.3%[269]. - Net income for 2024 was $94,879,000, a 4.4% increase from $91,462,000 in 2023[274]. Assets and Liabilities - Total assets decreased to $1,786,142,000 in 2024 from $1,855,098,000 in 2023, representing a decline of 3.7%[265]. - Total liabilities reduced to $733,137,000 in 2024, down from $938,831,000 in 2023, a decrease of 21.9%[265]. - The company’s total equity rose to $1,053,005,000 in 2024, compared to $916,267,000 in 2023, reflecting an increase of 14.9%[265]. Cash Flow and Financing - Cash and cash equivalents decreased significantly to $9,414,000 in 2024 from $20,286,000 in 2023, a drop of 53.6%[265]. - Net cash provided by operating activities increased to $125,172,000 in 2024 from $104,403,000 in 2023, representing a 20% growth[274]. - The company experienced a net cash used in financing activities of $226,724,000 in 2024, compared to a net cash provided of $80,416,000 in 2023[274]. - Borrowings from the revolving line of credit amounted to $27,200,000 in 2024, a decrease from $277,450,000 in 2023[274]. Investments and Joint Ventures - The company has eight active joint ventures with a total LTC equity investment of $378.6 million[102]. - The company entered into partnerships with ALG Senior Living, exchanging three mortgage loan receivables totaling $102.4 million for controlling interests in these partnerships[259]. - The company has committed to fund a $26,120,000 mortgage loan for the construction of a 116-unit community in Illinois, with a current interest rate of 9.0%[361]. - The company had investments in four joint ventures (JVs) that owned 31 properties across three states as of December 31, 2024[375]. Risks and Challenges - The company faces risks associated with public health crises, which could adversely impact occupancy levels and operating costs at health care facilities[70]. - Federal and state health care cost containment measures could reduce reimbursement from third-party payors, adversely affecting operators' ability to make payments[73]. - Increased operating costs due to inflation could adversely affect operators' net income and the company's results of operations[79]. - The company competes for health care property investments with other developers and REITs, which may affect its growth strategy[87]. Compliance and Regulations - The company is required to distribute at least 90% of its taxable income to maintain REIT status[96]. - The company may incur significant compliance costs due to new privacy and cybersecurity laws at federal and state levels[117]. - Regulatory approvals for health care facilities could delay operations, affecting the company's ability to collect lease or loan payments[75]. Market Conditions - The company is exposed to market risks associated with changes in interest rates, which could impact future earnings and cash flows[242]. - Disruptions in capital markets could affect the price of the company's common stock and its ability to obtain financing[112]. - Interest rates for 78.9% of consolidated borrowings were fixed or fixed with interest rate swaps as of December 31, 2024[245]. Impairment and Losses - The company recognized impairment losses of $6,953,000, $15,775,000, and $3,422,000 for the years ended December 31, 2024, 2023, and 2022, respectively, related to real property investments[301]. - The company recorded a significant reduction in impairment loss to $6,953,000 in 2024 from $15,775,000 in 2023, a decrease of 56%[274]. Future Projections - Future minimum base rents receivable for 2025 are projected at $116.2 million, with a gradual decrease to $69.6 million by 2029[334]. - The exit internal rate of return (IRR) for new joint ventures is projected at 8.0%, indicating strong future profitability potential[358].

Financial Performance - Total revenues for Q4 2024 increased to $52.582 million, up 4.8% from $50.195 million in Q4 2023[2] - Net income available to common stockholders decreased to $17.912 million, down 36.1% from $28.057 million in Q4 2023[2] - Diluted earnings per share (EPS) for Q4 2024 was $0.39, a decline of 42.1% compared to $0.67 in Q4 2023[2] - NAREIT funds from operations (FFO) attributable to common stockholders rose to $32.962 million, an increase of 37.8% from $23.902 million in Q4 2023[2] - Net income for the twelve months ended December 31, 2024, was $94,879 thousand, compared to $91,462 thousand in 2023, representing an increase of about 3.4%[19] - Net cash provided by operating activities increased to $125,169 thousand in 2024 from $104,403 thousand in 2023, a rise of approximately 19.9%[19] - Funds available for distribution (FAD) for the twelve months ended December 31, 2024, was $125,772 thousand, up from $115,338 thousand in 2023, reflecting an increase of about 9.5%[24] - NAREIT Basic FFO attributable to common stockholders per share increased to $0.73 for Q4 2024, up from $0.57 in Q4 2023, representing a 28.1% increase[28] - Total NAREIT Diluted FFO attributable to common stockholders was $33,133,000 for Q4 2024, compared to $23,902,000 in Q4 2023, reflecting a 38.7% growth[28] Liquidity and Capital Structure - Total liquidity as of December 31, 2024, was $680.4 million, including $9.4 million in cash and $280.7 million available under the unsecured revolving line of credit[7] - The company repaid $95.8 million under its revolving line of credit during the quarter[8] - Total assets decreased from $1,855,098 thousand in 2023 to $1,786,142 thousand in 2024, a decline of approximately 3.7%[17] - Total liabilities decreased from $938,831 thousand in 2023 to $733,137 thousand in 2024, a reduction of approximately 21.9%[17] - Common stock issued increased from 43,022 shares in 2023 to 45,511 shares in 2024, an increase of about 5.8%[17] - The company’s capital in excess of par value increased from $991,656 thousand in 2023 to $1,082,764 thousand in 2024, an increase of about 9.2%[17] - The total equity increased from $916,267 thousand in 2023 to $1,053,005 thousand in 2024, reflecting a growth of approximately 14.9%[17] Operational Highlights - LTC Properties sold a closed property in Colorado for $5.3 million, recording a gain on sale of $1.1 million[8] - The company reported a gain on sale of real estate, net of $7,979 thousand in 2024, compared to a loss of $37,296 thousand in 2023[19] - LTC's investment portfolio consists of 189 properties across 25 states, with a balanced allocation of approximately 50% in seniors housing and 50% in skilled nursing properties[10] - Dividends declared and paid per common share remained stable at $0.57 for both Q4 2024 and Q4 2023[14] Credit Losses and Adjustments - The company recorded a provision for credit losses reserve of $1,635,000 related to a $163,460,000 acquisition of properties in 2024[27] - The company reported a recovery for credit losses related to loan payoffs of $511,000 for a $51,111,000 mortgage loan paid off during Q4 2024[27] - The company experienced a provision for credit losses recovery of $1,738,000 related to five mortgage loan payoffs totaling $182,892,000 during 2024[27] - The total non-recurring adjustments to NAREIT FFO amounted to $(3,379,000) for Q4 2024, compared to $(8,907,000) for the full year 2023[28] Future Outlook - The company plans to initiate initial transactions under its RIDEA strategy in Q2 2025, which is expected to drive future growth[4]

Group 1: Company Overview - LTC Properties focuses on healthcare properties for older adults, with 45% in assisted living and 55% in skilled nursing [2] - Realty Income is a net-lease REIT primarily focused on retail assets (75%), with additional investments in industrial and unique properties [4] Group 2: Dividend Performance - LTC Properties has maintained a monthly dividend of $0.19 per share since it increased to that level over five years ago, demonstrating resilience during the pandemic [3] - Realty Income has increased its dividend for 30 consecutive years, with 108 quarterly dividend increases, and pays dividends monthly [5] Group 3: Yield Comparison - LTC Properties offers a higher yield of 6.7%, which is approximately 15% more income compared to Realty Income's yield of around 5.8% [6] - Realty Income's dividend has grown nearly 40% over the past decade, while LTC Properties' dividend has remained stagnant since 2017 [7] Group 4: Investment Recommendation - For investors prioritizing dividend growth, Realty Income is recommended despite its lower starting yield, as it is expected to close the income gap over time [8] - Realty Income is suggested as the better choice for most investors seeking high yield, monthly pay dividends, unless specifically looking for a healthcare REIT [9]