LTC Properties(US:LTC)2025-11-04 21:34Real Estate Investments - As of September 30, 2025, the total gross investments in the real estate portfolio amounted to $2,397.6 million, with seniors housing and health care properties comprising approximately 99.5% of the portfolio[141] - The seniors housing operating portfolio (SHOP) includes 21 communities managed by five independent operators, following the conversion of 13 communities from Triple-Net leases[145] - The gross investments in owned properties include 128 properties, with 56 in seniors housing and 50 in skilled nursing, generating a total rental income of $112.11 million[149] - The company has established a new SHOP segment, which is expected to enhance investment opportunities and provide oversight rights under the RIDEA structure[145] - As of September 30, 2025, the SHOP segment comprises 21 properties with a total gross investment of $446,527,000 and 1,577 beds/units, averaging $283.15 investment per unit[170] - During the nine months ended September 30, 2025, the company acquired eight seniors housing communities for a total purchase price of $268,750,000, adding 745 beds/units to the SHOP segment[171] - The company plans to convert two skilled nursing facilities from its triple-net portfolio into the SHOP segment, which will add 186 units with a gross book value of $33,102,000[170] Financial Performance - The company reported rental income and resident fees totaling $163.99 million, representing 100% of total revenues for the portfolio[149] - Total revenue for the Real Estate Investments segment for the nine months ended September 30, 2025, was $148.5 million, with a net operating income (NOI) of $140.1 million[151] - The SHOP segment generated $34.2 million in revenue for the nine months ended September 30, 2025, with an NOI of $7.4 million[151] - Total revenues for the nine months ended September 30, 2025, increased to $178,561, up by $21,296 compared to $157,265 in 2024[201] - Net income available to common stockholders for the three months ended September 30, 2025, was a loss of $20,149,000, a decrease of $49,314,000 compared to net income of $29,165,000 for the same period in 2024[198] - Net income attributable to LTC Properties, Inc. was $15,777 for the nine months ended September 30, 2025, down by $57,180 from $72,957 in 2024[201] - Funds from Operations (FFO) attributable to common stockholders for the nine months ended September 30, 2025, was $42,466, compared to $92,737 in 2024[208] - Net Operating Income (NOI) for the nine months ended September 30, 2025, was $147,840, slightly down from $149,188 in 2024[211] Investments and Acquisitions - The company anticipates making additional investments in health care-related properties, funded through cash on hand, asset sales, and borrowings under its unsecured revolving line of credit[146] - The company sold two skilled nursing centers in Florida for $43.0 million, expecting a gain on sale of approximately $26.0 million[169] - The company sold five remaining skilled nursing centers for $80.0 million, anticipating a gain on sale of approximately $52.0 million[169] - The company invested $4,248,000 in improvement projects for NNN properties and $2,425,000 for SHOP properties during the reporting period[172] - The company sold three properties for a total sales price of $6,350,000, resulting in a net loss of $235,000[174] Debt and Financing - Financing receivables totaled $362.2 million, contributing 15.1% to the gross investments, with interest income from financing receivables at $21.18 million[149] - The company had total debt obligations of $944,515,000 as of September 30, 2025, with a weighted average interest rate of 4.49%[233] - The new unsecured credit agreement increased the revolving line of credit from $425 million to $600 million, with a potential total commitment of $1.2 billion[228] - The company repaid $62,900,000 under the new revolving line of credit after September 30, 2025, leaving $485,550,000 outstanding[234] - The interest coverage ratio was 5.0x for the year to date, indicating strong ability to meet interest obligations[215] Operational Metrics - The company has implemented monitoring processes for its investments, including periodic financial reviews and property inspections to mitigate payment risks[143] - The company reported a total nurse staffing standard of 3.48 hours per resident day, which includes at least 0.55 hours of direct registered nurse care and 2.45 hours of direct nurse aide care[184] - The company’s skilled nursing centers reported a value of $943,775,000 as of September 30, 2025, compared to $959,060,000 as of June 30, 2025[190] - The company’s geographic mix shows Texas as the highest investment state at $314,232,000 as of September 30, 2025[190] Shareholder Information - As of September 30, 2025, the company had 47,332,792 shares of common stock outstanding, total equity of $1.0 billion, and equity securities with a market value of $1.7 billion[238] - During the nine months ended September 30, 2025, the company declared and paid $80.0 million in cash dividends[238] - The company sold 1,655,100 shares of common stock for $59.3 million in net proceeds under its Equity Distribution Agreement during the nine months ended September 30, 2025[241] - At September 30, 2025, the company had $330.3 million available under the Equity Distribution Agreement[241] - The company has an automatic shelf registration statement that allows for the public offering of an indeterminate amount of securities, expiring in November 2027[242] Regulatory and Compliance - The company has until January 1, 2026, to submit required Medicare revalidations as per the recent extension announced by CMS[185] - The company is in compliance with all applicable financial covenants as of September 30, 2025[232] Miscellaneous - The company experienced a write-off of effective interest receivable amounting to $41,455,000 for the three months ended September 30, 2025[198] - The provision for credit losses increased to $3,642 in 2025, up from $942 in 2024, reflecting higher risk assessments[201] - There were no material changes in the company's market risk during the nine months ended September 30, 2025[249]