LTC Properties(US:LTC)2025-08-04 21:02Financial Performance - Total revenues for Q2 2025 reached $60,240,000, an increase of 20.4% compared to $50,116,000 in Q2 2024[11] - Net income for Q2 2025 was $16,548,000, down 16.0% from $19,738,000 in Q2 2024[13] - Comprehensive income attributable to LTC Properties, Inc. for Q2 2025 was $14,375,000, down from $18,838,000 in Q2 2024[13] - Net income for the six months ended June 30, 2025, was $38,769,000, compared to $44,427,000 for the same period in 2024, reflecting a decrease of approximately 12%[17] - Net income for the three months ended June 30, 2025, was $16,548,000, a decrease of 16.0% compared to $19,738,000 for the same period in 2024[120] - For the six months ended June 30, 2025, net income available to common stockholders was $35,455,000, down 18.0% from $43,253,000 in 2024[120] Revenue Sources - Rental income decreased to $30,177,000 in Q2 2025 from $31,657,000 in Q2 2024, a decline of 4.7%[11] - Interest income from financing receivables increased significantly to $7,084,000 in Q2 2025, compared to $3,830,000 in Q2 2024, representing an 84.5% increase[11] - For the six months ended June 30, 2025, total revenues reached $109,271,000, with rental income at $61,621,000 and interest income from mortgage loans at $18,859,000[127] - Interest income from financing receivables for the six months ended June 30, 2025, was $14.086 million, representing 13.6% of total revenues[152] Assets and Liabilities - Total assets as of June 30, 2025, were $1,795,357,000, a slight increase from $1,786,142,000 at the end of 2024[9] - Total liabilities increased to $750,450,000 as of June 30, 2025, compared to $733,137,000 at the end of 2024[9] - The company’s total debt obligations amounted to $696,457,000 as of June 30, 2025, with a weighted average interest rate of 4.25%[93] - The debt to gross asset value ratio is 31.3% as of June 30, 2025, indicating a stable leverage position[191] Cash Flow and Distributions - Cash provided by operating activities for the six months ended June 30, 2025, was $59,598,000, slightly up from $58,026,000 in 2024[17] - Total cash distributions paid to stockholders amounted to $53,556,000 for the six months ended June 30, 2025, compared to $49,403,000 in 2024, representing an increase of about 8%[17] - The company declared dividends of $0.57 per common share for both Q2 2025 and Q2 2024, maintaining the same level[11] Investment Activities - The company invested $41,535,000 in real estate mortgage loans receivable during the six months ended June 30, 2025, compared to $16,054,000 in 2024, indicating a significant increase in investment activity[17] - The company has a total of 10 mortgage loans secured by properties across four states, with a total of 2,726 beds/units[64] - The company has committed to fund a $26,120,000 mortgage loan for the construction of a 116-unit facility in Illinois, with a current interest rate of 9.0%[65] Operational Changes - The company began utilizing the RIDEA structure in the second quarter of 2025, establishing a new operating segment for seniors housing[24] - The SHOP segment now includes 12 memory care and one independent and assisted living community, following the termination of two Triple-Net master leases[26] - The company converted 12 memory care communities from Triple-Net master leases to the SHOP segment, resulting in a write-off of $2.7 million in working capital notes and $0.4 million in interest receivable[162] Stock and Equity - The company sold 387,600 shares of common stock for $13,785,000 in net proceeds, with $376,378,000 available under the new Equity Distribution Agreement[101] - The company had outstanding restricted stock of 270,701 shares as of June 30, 2025, with a weighted average price of $33.75[109] - The company recognized $700,000 of compensation expense related to accelerated vesting of restricted common stock and performance-based stock units due to an employee's retirement[113] Financial Ratios and Metrics - The interest coverage ratio improved to 5.1x as of June 30, 2025, reflecting a decrease in interest expense[191] - Basic net income per share for the three months ended June 30, 2025, was $0.33, compared to $0.44 for the same period in 2024[120] - Diluted net income per share for the six months ended June 30, 2025, was $0.77, down from $1.00 in 2024[120] Strategic Outlook - The company anticipates making additional investments in healthcare-related properties, funded through cash on hand, asset sales, and borrowings under its unsecured revolving line of credit[148] - The company monitors various economic factors to develop strategic plans aimed at improving performance and competitive position[194] - The company intends to vigorously defend against various liability claims and lawsuits, which it believes are the responsibility of its lessees and borrowers[116]