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]

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]