LTC Properties(LTC)2024-10-28 20:24Financial Performance - Net income for the quarter ended September 30, 2024, was $75,289,000, an increase from $22,627,000 in the same quarter of the previous year[153]. - The company reported an adjusted EBITDA of $122,023,000 for the quarter ended September 30, 2024, compared to $39,930,000 for the same quarter last year[153]. - GAAP net income available to common stockholders for Q3 2024 was $29,165,000, compared to $22,050,000 in Q3 2023, representing a 32.3% increase[171]. - Net income attributable to LTC Properties, Inc. for the three months ended September 30, 2024, was $29,366, an increase of $7,169 compared to $22,197 for the same period in 2023, reflecting a growth of approximately 32.3%[162]. - Total revenues for the three months ended September 30, 2024, reached $55,783, up $6,480 from $49,303 in the same period of 2023, indicating a growth of approximately 13.1%[162]. - Funds from Operations (FFO) available to common stockholders for the nine months ended September 30, 2024, was $72,446, an increase of $11,381 compared to $61,065 for the same period in 2023, representing a growth of approximately 18.6%[165]. - Interest income from financing receivables for the nine months ended September 30, 2024, was $14,661, an increase of $3,248 compared to $11,413 for the same period in 2023, indicating a growth of approximately 28.4%[164]. - The company experienced an impairment loss of $12,510 during the nine months ended September 30, 2024, which was a significant factor affecting overall financial performance[164]. Revenue Sources - Rental income, income from financing receivables, and interest income from mortgage loans accounted for 62.0%, 9.3%, and 22.8% of total revenues for the nine months ended September 30, 2024, respectively[113]. - As of September 30, 2024, the company’s total rental revenue was $135.2 million, which represents 100% of total revenues for the period[111]. - Interest income from financing receivables for the nine months ended September 30, 2024, was $14.7 million, with $11.7 million received in cash[119]. - Interest income from mortgage loans for the same period was $35.8 million, including $32.7 million received in cash[120]. Investment Portfolio - As of September 30, 2024, the company had a net carrying value of investments totaling $1.7 billion, with $942.3 million (54.2%) in owned and leased properties, $357.9 million (20.6%) in financing receivables, and $360.8 million (20.7%) in mortgage loans[112]. - The company’s gross investments in owned properties amounted to $1.34 billion, representing 62.6% of the total investment portfolio, with assisted living properties contributing $732.1 million (34.1%) and skilled nursing properties contributing $598.1 million (27.9%) to the total[111]. - The company operates 124 owned properties, including 73 assisted living facilities and 50 skilled nursing centers, with a total of 9,360 beds and 7,419 units across its portfolio[111]. - Financing receivables totaled $361.5 million, representing 16.8% of the company's total investments, with assisted living contributing $284.9 million (13.3%) and skilled nursing contributing $76.6 million (3.5%) to this category[111]. - The company’s investment strategy focuses on diversifying its portfolio by geographic location, operator, property classification, and form of investment[104]. Debt and Liquidity - The debt to gross asset value ratio improved to 34.5% as of September 30, 2024, down from 42.1% a year earlier[152]. - The interest coverage ratio was reported at 3.8x for the quarter ended September 30, 2024, compared to 3.2x for the same quarter last year[153]. - Total liquidity as of September 30, 2024, was $229,448,000, including cash and cash equivalents of $35,040,000[172]. - The outstanding balance of the revolving line of credit was $240,150,000 as of September 30, 2024, with $184,850,000 available for borrowing[187]. - The company repaid $93,800,000 under its unsecured revolving line of credit after September 30, 2024, reducing the outstanding balance to $146,350,000[187]. Regulatory Environment - Future regulatory changes in Medicare and Medicaid could adversely affect the financial condition of the company's borrowers and lessees[145]. - CMS estimated a net increase of 4.2%, or approximately $1.4 billion, in Medicare Part A payments to SNFs for fiscal year 2025[141]. - The final rule from CMS includes a total nurse staffing standard of 3.48 hours per resident day, which must include at least 0.55 hours of direct registered nurse care[142]. Shareholder Returns - The company declared and paid $74.7 million in cash dividends during the nine months ended September 30, 2024[189]. - Subsequent to September 30, 2024, the company declared a monthly cash dividend of $0.19 per share for October, November, and December 2024[190]. - The company sold 1,886,900 shares of common stock for $65.6 million in net proceeds during the nine months ended September 30, 2024, with $9.6 million available under the Equity Distribution Agreements as of that date[191]. - Subsequent to September 30, 2024, the company sold an additional 226,370 shares for $7.9 million in net proceeds, leaving $1.5 million available under the Equity Distribution Agreements[191]. Strategic Initiatives - The company plans to make additional investments in healthcare-related properties, funded through cash on hand, asset sales, and internally generated cash flows[108]. - The company continues to monitor economic factors and develop strategic plans to improve performance and maximize competitive position in the market[160]. - The company has structured its investments to mitigate payment risk, utilizing credit enhancements such as guarantees and letters of credit[107]. Joint Ventures and Acquisitions - A joint venture with ALG Senior Living was formed, exchanging a $64.5 million mortgage loan receivable for a 53% controlling interest[122]. - The company entered into a newly formed $122,460 joint venture with ALG, exchanging a $64,450 mortgage loan receivable for a 53% controlling interest[134]. - Brookdale acquired a parcel of land in Kansas for $0.3 million, resulting in an 8.0% rent increase on the total investment[131]. Market Conditions - The operator mix indicates that the top five operators accounted for a significant portion of the company's investments, with ALG Senior at $307,308,000 as of September 30, 2024[149]. - The geographic mix shows Texas as the leading state with investments totaling $323,737,000 as of September 30, 2024[149]. - There were no material changes in the company's market risk during the nine months ended September 30, 2024[197].