Financial Performance - Total revenues for Q2 2025 increased by $10.1 million to $60.24 million compared to $50.12 million in Q2 2024[1] - Net income available to common stockholders decreased by $4.3 million to $14.94 million, down from $19.19 million in the previous year[1] - Diluted earnings per share fell to $0.32 from $0.44 year-over-year[1] - NAREIT funds from operations (FFO) attributable to common stockholders decreased to $23.38 million, down from $28.24 million in Q2 2024[1] - Total revenues for the three months ended June 30, 2025, increased to $60,240,000, compared to $50,116,000 for the same period in 2024, representing a growth of 20.4%[18] - Net income attributable to LTC Properties, Inc. for the six months ended June 30, 2025, was $35,772,000, down from $43,591,000 in 2024, reflecting a decrease of 18.0%[18] - Earnings per common share (diluted) for the three months ended June 30, 2025, was $0.32, compared to $0.44 for the same period in 2024, a decline of 27.3%[18] - Total expenses for the three months ended June 30, 2025, were $44,544,000, up from $31,017,000 in 2024, marking an increase of 43.8%[18] - GAAP net income available to common stockholders for Q2 2025 was $14,938,000, down from $19,188,000 in Q2 2024, representing a decrease of 22.5%[28] - NAREIT FFO attributable to common stockholders for Q2 2025 was $23,382,000, a decline of 17.2% compared to $28,244,000 in Q2 2024[28] - Funds available for distribution (FAD) for Q2 2025 was $25,623,000, down 13.5% from $29,548,000 in Q2 2024[28] - Core FFO for Q2 2025 increased to $31,393,000, up 7.7% from $29,266,000 in Q2 2024[28] - Basic FAD per share for Q2 2025 was $0.56, a decrease from $0.68 in Q2 2024, reflecting a decline of 17.6%[32] Investments and Acquisitions - The company raised its 2025 full-year guidance to include $400 million of completed and anticipated near-term investments[3] - The SHOP portfolio is expected to more than double in size due to these investments[3] - LTC originated a $42.3 million mortgage loan with a fixed yield of 8.5% secured by a 250-unit community in Florida[7] - The company expects to close investments totaling approximately $320 million over the next 60 days, with an anticipated average year-one yield of 7%[9] - The company acquired a 67-unit seniors housing community in California for $35.2 million, with an estimated year-one yield of 7%[7] - The company acquired properties valued at $163,460,000 in 2024, with $102,435,000 received from the payoff of three mortgage loans[31] Financial Guidance - The company raised its full year 2025 guidance for GAAP net income attributable to LTC Properties, Inc. to a range of $3.45 to $3.48 per share[33] - Diluted NAREIT FFO attributable to common stockholders is guided to be between $2.48 and $2.51 per share for 2025[33] - Diluted Core FFO is expected to be in the range of $2.67 to $2.71 per share for the full year 2025[33] - Diluted FAD guidance for 2025 is set between $2.70 and $2.73 per share[33] - SHOP NOI for the full year 2025 is projected to be between $10,400 and $15,600, or annualized between $17,300 and $35,700[34] - SHOP FAD capital expenditures for 2025 are estimated to be between $660,000 and $920,000, or annualized between $1.2 million and $1.4 million per unit[34] - General and administrative expenses for 2025 are expected to be between $29 million and $29.8 million[34] - The company anticipates incremental RIDEA ramp-up and execution costs of approximately $1.1 million to $1.5 million, with $823,000 expensed in the first half of 2025[34] - The guidance excludes additional investments beyond those closed to date or expected to close in the next 60 days[34] Liquidity and Cash Flow - As of June 30, 2025, total liquidity was reported at $640.4 million, including $256.4 million available under its unsecured revolving line of credit[10] - Cash and cash equivalents at the end of the period on June 30, 2025, were $7,609,000, a decrease from $9,414,000 at the beginning of the period[23] - The company reported a net cash provided by operating activities of $59,598,000 for the six months ended June 30, 2025, compared to $58,026,000 in 2024, reflecting a modest increase of 2.7%[23] Credit Losses - The company reported a provision for credit losses of $3,439,000 for the six months ended June 30, 2025, compared to $727,000 in 2024, indicating a significant increase in credit loss provisions[18] Non-Recurring Items - Non-recurring items added $8,011,000 to NAREIT FFO in Q2 2025, compared to $1,022,000 in Q2 2024[29] Other Information - The company’s investments in real estate properties for the six months ended June 30, 2025, included $41,535,000 in mortgage loans receivable[23] - The total assets as of June 30, 2025, were $1,795,357,000, compared to $1,786,142,000 as of December 31, 2024, showing a slight increase of 0.6%[21] - The company has converted Anthem's and New Perspective's triple-net portfolios of 13 properties with a total of 832 units into its new SHOP segment[34]

Core Insights - The S&P 500 index has a low dividend yield of 1.2%, while healthcare stocks average just under 1.8%, but certain healthcare REITs offer yields three to four times higher [1] Group 1: Impact of COVID-19 on Senior Housing REITs - The COVID-19 pandemic severely affected nursing homes and senior housing properties, leading to decreased occupancy levels and increased move-outs, including deaths [2] - Some major healthcare REITs, such as Ventas and Welltower, cut their dividends during the pandemic, while LTC Properties and Omega Healthcare Investors maintained their dividends [4] Group 2: Current Opportunities in Senior Housing REITs - LTC Properties and Omega Healthcare Investors are positioned to benefit from the increasing demand for senior housing as the population ages, with current yields of 6.9% and 6.4% respectively [6] - The demographic trend indicates a significant rise in the oldest population cohort, which will require more assistance with daily needs [6] Group 3: Universal Health Realty Trust - Universal Health Realty Trust has a strong track record of increasing its dividend annually for 40 consecutive years, currently offering a yield of 7.1% [7] - The REIT focuses on medical office properties, with its largest tenant being Universal Health Services, raising questions about potential conflicts of interest [8] - Despite a historical average dividend growth of 1.5% per year, the high yield may appeal to income-focused investors [9] Group 4: Investment Considerations - LTC Properties and Omega Healthcare Investors avoided dividend cuts during the pandemic and are now well-positioned for future growth [10] - A $500 investment can yield approximately 13 shares of either LTC or Omega, or around 12 shares of Universal Health Realty Trust [11]

Group 1 - The investment case for LTC Properties, Inc. (NYSE: LTC) is characterized as limited but stable, with historically capped upside in share prices [1] - Skilled nursing facilities are identified as a drag on operators, indicating challenges in this segment of the market [1] - There is a lack of immediate demand for senior private pay housing, suggesting potential headwinds for growth in this area [1]

Group 1 - Litecoin (LTC) has seen a significant increase, rising 12.6% from last Friday [1] - MEI Pharma announced a $100 million private placement to pursue a Litecoin accumulation strategy and appointed Charlie Lee, the creator of Litecoin, to its board [1][2] - MEI Pharma will be the first publicly traded company on a major exchange to adopt Litecoin as part of its strategy [2] Group 2 - Trump Media has purchased an additional $2 billion in Bitcoin, coinciding with Litecoin's rise [3] - The cryptocurrency market is experiencing a surge, with Bitcoin recently surpassing the $120,000 mark, driven by enthusiasm for potential regulatory frameworks [5] - Litecoin typically follows Bitcoin's price movements, although there are questions about its investment appeal compared to Bitcoin [5]

Core Viewpoint - Hyper Bit Technologies Ltd. has executed a loan agreement to purchase ten ElphaPex DG1+ miners for mining Dogecoin and Litecoin, with operations to be managed at a renewable energy facility in Quebec, Canada [1][4]. Group 1: Company Developments - The company is advancing in its crypto mining and treasury asset acquisition strategies, with plans to acquire Dogecoin Mining Technologies Ltd. through the initial miner purchase [3]. - The loan agreements executed on June 18 and July 4, 2025, total CAD $160,000, which will be used for purchasing miners and working capital, bearing 10% interest per annum and a 15% loan fee [4]. - Hyper Bit Technologies Ltd. is committed to leveraging the growing interest in digital assets and aims to unlock value across the crypto ecosystem [5]. Group 2: Industry Context - The company is part of a broader trend in the crypto industry, focusing on the rise of blockchain and decentralized finance (DeFi), which is driving institutional and retail adoption of digital assets [5]. - The deployment of high-efficiency ASIC mining rigs at a renewable power facility aligns with the industry's shift towards sustainable energy solutions in crypto mining [3][8].

Core Viewpoint - Hyper Bit Technologies Ltd. has entered into a non-binding letter of intent to acquire Dogecoin Mining Technologies Corp., a company focused on Dogecoin and Litecoin mining operations, which positions Hyper Bit to enhance its market presence in the cryptocurrency mining sector [1][6]. Company Overview - Hyper Bit Technologies Ltd. is a diversified technology company specializing in crypto mining operations and blockchain innovations, aiming to unlock value in the digital asset ecosystem [14]. - Dogecoin Mining Technologies Corp. is a development-stage company focused on building scalable, high-performance mining operations for Dogecoin and Litecoin, with a strong emphasis on renewable energy [16][17]. Proposed Transaction Details - The proposed acquisition involves Hyper Bit issuing 15,000,000 common shares to Dogecoin Mining Technologies' shareholders at a deemed price of $0.30 per share, totaling a value of $4,500,000 [10]. - The share issuance will be subject to a tranche structure based on operational milestones, ensuring alignment with long-term growth objectives [12][13]. Infrastructure and Operations - Dogecoin Mining Technologies has secured a hardware supply agreement for up to 2,660 Elphapex ASIC rigs and a colocation agreement for a data center with access to 11 megawatts of renewable energy at a competitive rate below $0.07 per kilowatt-hour [2][4][16]. - The company is positioned to rapidly scale its mining operations upon securing the necessary capital resources, leveraging its infrastructure and operational expertise [17]. Strategic Importance - The acquisition is seen as a pivotal milestone for Hyper Bit, enhancing its strategic growth in the cryptocurrency mining sector and aiming for long-term value creation and profitability [6][9]. - Both companies express optimism about the potential of Dogecoin and Litecoin, citing their strong correlation with Bitcoin price trends and robust mining economics [9].

Core Insights - LTC Properties has shown a solid turnaround with improving occupancy rates and an undervalued share price, alongside a decent dividend yield [2]. Group 1: Company Performance - LTC Properties' share price increased from $35.73 during the last coverage in July 2024, indicating positive market sentiment [2]. Group 2: Investment Focus - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1].

Company Overview - LTC Properties, Inc. reported a strong start to 2025, highlighting the successful cooperative conversion of 13 properties from triple net leases to a SHOP portfolio valued at $176 million in gross book value [5]. Earnings Call Details - The first quarter 2025 earnings call took place on May 6, 2025, with key participants including Clint Malin (Co-President & Chief Investment Officer), Wendy Simpson (Chairman of the Board & CEO), and Cece Chikhale (CFO) [1][5]. - The call included a question-and-answer session following the formal presentation, allowing for interaction with analysts from various financial institutions [2]. Financial Performance - The company emphasized its RIDEA platform as a significant contributor to its portfolio growth, indicating a strategic shift in property management and investment approach [5].

Financial Data and Key Metrics Changes - Fully diluted FFO per share excluding non-recurring items increased to $0.65 from $0.64 [8] - Fully diluted FAD per share excluding non-recurring items rose to $0.70 from $0.67 [8] - Total liquidity is approximately $681 million, with a debt to annualized adjusted EBITDA for real estate of 4.3 times [9] - Annualized adjusted fixed charge coverage ratio improved to 5.0 times from 4.7 times [9] - Full year 2025 guidance for core FFO per share is between $2.65 and $2.69, and core FAD per share is between $2.78 and $2.82 [9] Business Line Data and Key Metrics Changes - The SHOP portfolio now totals $176 million in gross book value after converting 13 properties from triple net leases [4] - SHOP NOI for 2025 is projected in the range of $9.4 million to $10.3 million [10] - Revenue from properties subject to market-based rent resets is expected to be $5.1 million, up from guidance of $4.4 million last quarter [12] - The company plans to replace at least $8.3 million of 2025 GAAP rent from seven skilled nursing centers currently in the sale process [13] Market Data and Key Metrics Changes - The Anthem portfolio currently has an occupancy rate of 81% [10] - The company expects to see occupancy improvements in the Anthem portfolio during the key selling season starting in May [50] Company Strategy and Development Direction - The company is focused on growth through the RIDEA strategy and plans to complement it with investments in traditional and structured finance transactions [14] - The company aims to build a resilient, performance-driven portfolio structured for long-term value creation [15] - The company is actively pursuing opportunities to add newer, stabilized assets to enhance portfolio quality [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential for 2025, emphasizing a clear pathway to growth through the IDEA platform [5] - The management team is optimistic about the opportunities ahead and the progress made [16] - The company is encouraged by the trending of increasing guidance in its portfolio [68] Other Important Information - The company appointed a new Chief Investment Officer, Dave Boytano, to enhance its investment strategy [5] - The company has no plans to convert any assets in its triple net portfolio at this time, focusing instead on organic growth [41] Q&A Session Summary Question: Guidance regarding ALG's asset purchase option and financing - Management indicated that ALG is still working on financing in a volatile rate environment, but guidance assumes they will continue to pay full rent [19] Question: Details on the lease termination payment to New Perspective - The lease termination payment was made to reward New Perspective for value creation and to provide a runway for future growth opportunities [22] Question: Future SHOP conversions and investment pipeline - Management noted that 50% of the $300 million investment pipeline represents RIDEA opportunities, with potential for some triple net conversions [24] Question: NOI range for SHOP assets and growth expectations - The projected SHOP NOI for 2025 is $15.2 million, reflecting growth from occupancy improvements [30] Question: Performance of the Anthem portfolio and future outlook - Management acknowledged a dip in occupancy for Anthem but expects recovery during the key selling season [50] Question: Issues with Genesis and overall financial performance - Management confirmed no current issues with Genesis and noted strong coverage in core markets [45]

Financial Data and Key Metrics Changes - Fully diluted FFO per share excluding non-recurring items grew to $0.65 from $0.64 [6] - Fully diluted FAD per share excluding non-recurring items increased to $0.70 from $0.67 [6] - Total liquidity is approximately $681 million [7] - Debt to annualized adjusted EBITDA for real estate is 4.3 times [7] - Annualized adjusted fixed charge coverage ratio improved to 5.0 times from 4.7 times [7] - Full year 2025 guidance for core FFO per share is between $2.65 and $2.69 [8] Business Line Data and Key Metrics Changes - SHOP portfolio now totals $176 million in gross book value through the conversion of 13 properties from triple net leases [3] - SHOP NOI for 2025 is projected in the range of $9.4 million to $10.3 million [10] - Revenue from market-based rent resets is expected to be $5.1 million, up from guidance of $4.4 million [11][12] - The company expects to collect approximately $8.3 million of GAAP rent from properties currently under sale [12] Market Data and Key Metrics Changes - The Anthem portfolio is currently 81% occupied [9] - The company expects occupancy to improve as it enters the key selling season [46] - The occupancy for the SHOP portfolio is projected at 85% for 2025 [25] Company Strategy and Development Direction - The company is focused on growth through the RIDEA strategy and expanding its SHOP portfolio [13] - The investment pipeline stands at $300 million, with approximately 50% representing RIDEA opportunities [4] - The company aims to complement its RIDEA strategy with investments in traditional and structured finance transactions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, emphasizing a strong investment pipeline and strategic partnerships [5][14] - The company is optimistic about occupancy recovery in the Anthem portfolio and expects continued improvement [46] - Management highlighted the importance of operator diversification and maintaining a balanced portfolio [30] Other Important Information - The company appointed a new Chief Investment Officer, enhancing its leadership team [4] - The company has no plans to convert any properties in its triple net portfolio at this time, focusing instead on organic growth [36] Q&A Session Summary Question: Guidance regarding ALG's asset purchase option and financing - Management indicated that ALG is still working on financing in a volatile rate environment, but guidance assumes they will continue to pay full rent [17] Question: Details on the lease termination payment to New Perspective - The lease termination payment was made to reward New Perspective for value creation and to facilitate growth in the SHOP portfolio [20] Question: Future SHOP conversions from triple net leases - Management noted that while there may be opportunities for some conversions, the focus is primarily on external growth through SHOP [21] Question: SHOP asset NOI projections and growth - The projected SHOP NOI for 2025 is $15.2 million, reflecting growth from occupancy improvements [26] Question: Performance of the Anthem portfolio - Management acknowledged a dip in occupancy due to clinical discharges but expects recovery as the key selling season begins [46] Question: Financial performance of ALG and rent deferrals - No rent deferrals were given this quarter, and ALG's occupancy has increased due to improved lead generation [57] Question: Other leases with market-based resets - Management confirmed that there are 14 properties with market-based resets, which are expected to increase as occupancy improves [60]