LTC Properties(US:LTC)2023-04-27 20:23Financial Performance - Net income for Q1 2023 was $33,561,000, a significant increase from $14,507,000 in Q1 2022, representing a year-over-year growth of 131%[155]. - Total revenues for Q1 2023 reached $49,500,000, up from $40,787,000 in Q1 2022, marking an increase of 21.4%[163]. - Funds from Operations (FFO) attributable to common stockholders for Q1 2023 was $27,200,000, compared to $23,611,000 in Q1 2022, reflecting a growth of 15.5%[169]. - The company reported a gain on the sale of real estate of $15,373,000 in Q1 2023, compared to a gain of $102,000 in Q1 2022[163]. - Interest expense increased to $10,609,000 in Q1 2023 from $7,143,000 in Q1 2022, a rise of 48.5%[163]. - Cash provided by operating activities for the three months ended March 31, 2023, was $18,039,000, a decrease of 2.9% from $18,568,000 in 2022[178]. - Investing activities resulted in cash used of $132,230,000 for the three months ended March 31, 2023, an increase of 273.5% from $35,473,000 in 2022[178]. - Financing activities generated $109,350,000 in cash for the three months ended March 31, 2023, compared to $16,137,000 in 2022, reflecting a 577.5% increase[178]. Investment Portfolio - As of March 31, 2023, the net carrying value of investments was $1.7 billion, with $1.0 billion (58.2%) in owned and leased properties, $0.2 billion (11.5%) in financing receivables, and $0.5 billion (26.5%) in mortgage loans[108]. - The total real estate investment portfolio as of March 31, 2023, was valued at $2.11 billion, with assisted living properties comprising 52.7% and skilled nursing properties 46.0%[106]. - Seniors housing and health care properties made up approximately 99.3% of the gross investment portfolio as of March 31, 2023[97]. - The company anticipates making additional investments in health care-related properties, funded through cash on hand and proceeds from asset sales[102]. - The company entered into a $121.3 million joint venture to purchase 11 assisted living and memory care communities, with an initial cash yield of 7.25%[124]. Revenue Sources - Rental income, income from financing receivables, and interest income from mortgage loans accounted for 64.1%, 7.6%, and 22.7% of total revenues, respectively, for the three months ended March 31, 2023[109]. - For the three months ended March 31, 2023, the company recorded $32.4 million in cash rental income, including $3.3 million from operator reimbursements for real estate taxes[111]. - The company received $11.2 million in interest income from mortgage loans, with $9.3 million received in cash[112]. - Prestige Healthcare represents 16.4% of the company's total revenues and 14.7% of total assets as of March 31, 2023[116]. - The company anticipates receiving $10.8 million in cash rent from Anthem in 2023, consistent with 2022[113]. Debt and Liquidity - As of March 31, 2023, total debt obligations amounted to $901,045,000, with a weighted average interest rate of 4.58%[183]. - The company has an unsecured credit facility with a total commitment of up to $500 million, including a $400 million revolving credit facility[179]. - The company had $5.5 million in cash and cash equivalents and $129.9 million available under its unsecured revolving line of credit as of March 31, 2023[170]. - The company expects to maintain sufficient cash flow to cover operating costs and debt obligations, despite challenges posed by COVID-19[171]. - The company has a conservative approach to managing its business, maintaining liquidity until favorable investment opportunities arise[103]. Asset Management - The company monitors its investments through periodic reviews of financial statements and operator credit to mitigate payment risks[98]. - The company provided $0.5 million of abated rent to an operator during Q1 2023, with additional abated rent expected in subsequent months[117]. - The company recorded a $0.4 million impairment loss during Q1 2023 related to the sale of a 70-unit assisted living community in Florida[120]. - The company continues to monitor concentration risk across asset, investment, operator, and geographic mixes to assess potential downturn impacts[146]. Operator and Geographic Concentration - A master lease with Brookdale Senior Living Communities, Inc. is set to expire in December 2023, while another lease covering two skilled nursing centers has been renewed for five more years[110]. - The top five operators accounted for a significant portion of the company’s investments, with ALG Senior showing a notable increase to $326,288,000 as of March 31, 2023, compared to $192,699,000 as of December 31, 2022[148]. - Geographic concentration showed Texas as the leading state with investments of $328,442,000 as of March 31, 2023, slightly up from $327,490,000 as of December 31, 2022[148]. - North Carolina emerged as a top five state with investments of $232,841,000 as of March 31, 2023, a significant increase from $99,646,000 as of December 31, 2022[148]. - The company’s remaining states category saw a total investment of $995,223,000 as of March 31, 2023, up from $978,188,000 as of December 31, 2022[148]. Financial Ratios - As of March 31, 2023, the debt to gross asset value ratio increased to 41.0% from 37.4% in the previous quarter, indicating a rise in outstanding debt[153]. - The interest coverage ratio decreased to 3.6x in Q1 2023 from 4.4x in Q4 2022, reflecting an increase in interest expense[153]. - The company’s total fixed charges for Q1 2023 were $10,609,000, with a fixed charge coverage ratio of 3.6x[155]. Shareholder Returns - The company declared and paid $23,600,000 in cash dividends during the three months ended March 31, 2023[185]. - The company awarded 214,827 shares of restricted stock and performance-based stock units during the three months ended March 31, 2023[191]. - As of March 31, 2023, the company had 41,396,216 shares of common stock outstanding, with equity totaling $864.6 million[185].