LTC Properties(US:LTC)2025-05-05 20:25PART I Financial Statements 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 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 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 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 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 segment21 - Subsequent to Q1 2025, a 12-property portfolio transitioned to a RIDEA structure, leading to a $2.7 million note write-off in Q131116 - Major operators Prestige Healthcare and ALG Senior Living accounted for 16.5% and 11.8% of Q1 2025 total revenues, respectively104 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 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-end128135 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 capacity176 Quantitative and Qualitative Disclosures about Market Risk 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 2025204 Controls and Procedures 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 period205206 - No material changes occurred in the company's internal control over financial reporting during the quarter207 PART II -- Other Information Legal Proceedings 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 results209 Risk Factors 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 operations211 Unregistered Sales of Equity Securities and Use of Proceeds 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 2025213 - The company acquired 138,010 shares from employees to cover tax withholding obligations related to vested stock awards213 Other Information 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 quarter214 Exhibits 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 Act217