LTC Properties, Inc. (NYSE:LTC) Q1 2025 Earnings Conference Call May 6, 2025 11:00 AM ET Company Participants Clint Malin - Co-President & Chief Investment Officer Cece Chikhale - CFO Gibson Satterwhite - EVP of Asset Management Pam Kessler - Co-President Wendy Simpson - Chairman of the Board & CEO Conference Call Participants Juan Sanabria - BMO Capital Markets Austin Wurschmidt - KeyBanc Capital Markets Rich Anderson - Wedbush Michael Carroll - RBC Capital Markets Omotayo Okusanya - Deutsche Bank Operator ...

LTC Properties (LTC) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Speaker0 ladies and gentlemen, and welcome to the LTC Properties Incorporated First Quarter twenty twenty five Earnings Call. At this time, all participants are on a listen only mode and a question and answer session will follow the formal presentation. Before management begins its presentation, please note that today's comments, including the question and answer session, may include forward looking statements subject to risks and uncertain ...

LTC Properties (LTC) came out with quarterly funds from operations (FFO) of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share. This compares to FFO of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -1.52%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.65 per share when it actually produced FFO of $0.72, delivering a surprise of 10.77%.Over the last four quar ...

FIRST QUARTER 2025 LEADERSHIP MANDI HOGAN SVP, Marketing WENDY SIMPSON Executive Chairman PAM KESSLER Co-President and Co-CEO CLINT MALIN Co-President and Co-CEO CECE CHIKHALE EVP, Chief Financial Officer, Treasurer and Secretary DAVID BOITANO EVP, Chief Investment Officer GIBSON SATTERWHITE EVP, Asset Management MIKE BOWDEN SVP, Investments BOARD OF DIRECTORS RENEWAL AND SUPPLEMENTAL OPERATING AND FINANCIAL DATA TRANSITION | WENDY SIMPSON | Executive Chairman | | --- | --- | | CORNELIA CHENG | ESG Committe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ____ to ____ Commission file number 1-11314 LTC PROPERTIES, INC. (Exact name of Registrant as specified in its charter) (State or other juri ...

FOR IMMEDIATE RELEASE WESTLAKE VILLAGE, CALIFORNIA, May 5, 2025 -- LTC Properties, Inc. (NYSE: LTC) ("LTC" or the Exhibit 99.1 For more information contact: Mandi Hogan (805) 981-8655 LTC REPORTS 2025 FIRST QUARTER RESULTS -- Transitioned 12 Properties to New SHOP Portfolio; RIDEA Strategy Unlocking New Opportunities for Value Creation -- -- Issues Full Year 2025 Guidance -- "Company"), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced opera ...

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Financial Data and Key Metrics Changes - Net income available to common shareholders decreased by 10.1% due to a decrease in gain on sale, an increase in impairment losses, and higher general and administrative expenses [13] - FFO excluding non-recurring items improved by 2.1% primarily due to lower interest expense and rent increases from fair market rent resets [14] - On a fully diluted per share basis, FFO was $0.72 compared to $0.57 last year, while core FFO was $0.65 per share in Q4 2024 compared to $0.66 per share in Q4 2023 [15] Business Line Data and Key Metrics Changes - The company is targeting $150 million to $200 million in initial gross investment assets to convert from triple net leases to RIDEA structures [11] - Year one NOI from these conversions is expected to offset initial expenses incurred to build the RIDEA platform [11] Market Data and Key Metrics Changes - Occupancy in the portfolio increased by 740 basis points from January of last year to January of this year [24] - The company expects to receive $4.8 million in rent from market-based rent resets in 2025, up from $3.7 million in 2024 [24] Company Strategy and Development Direction - The company is focused on diversifying its portfolio with respect to operator, geography, property type, and investment vehicle [10] - RIDEA is seen as a transformative strategy that will unlock long-term growth potential [12] - The company aims to complete the search for a new Chief Investment Officer by the second quarter to assist in growing the RIDEA platform [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong growth strategy driven by RIDEA [5] - The company is in one of the best positions for accretive growth in recent years, having diversified its portfolio and shored up its balance sheet [27] Other Important Information - Total liquidity at the end of the last quarter was approximately $680 million, up from $229 million at the end of September 2024 [17] - The company entered into a new $400 million ATM program and terminated a previous $200 million program [15] Q&A Session Summary Question: Details about the operator not renewing - The operator decided to downsize and exit the states where the properties are located, with credit enhancements in place to secure rent payments [31] Question: Neutral earnings impact from transition to RIDEA - The transition accounts for expected one-time expenses related to setting up the platform, with an in-place yield of about 8% [38] Question: Percentage of portfolio expected to be RIDEA vs. net lease by end of 2025 - Currently about 50-50, but expected to increase more towards RIDEA over time [44] Question: G&A expectations for the shop operating platform - Increased G&A will be provided after establishing the platform, but expected increase in NOI from the shop portfolio to offset expenses this year [46] Question: Circumstances leading to restoring accrual accounting for master leases - Strong operational performance led to higher confidence in receiving contractual rent through maturity [98]

RENEWAL AND SUPPLEMENTAL OPERATING AND FINANCIAL DATA TRANSITION FOURTH QUARTER 2024 Founded in 1992, LTC Properties, Inc. (NYSE: LTC) is a self-administered real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including preferred equity and mezzanine lending. LTC's portfolio encompasses Skilled Nursing Facilities (SNF), Assisted Living Communities (ALF), Independent Livi ...

Revenue Sources - Approximately 31.3% of the company's revenues from leases and interest income were generated from three operators during the year ended December 31, 2024[78]. - 63.0% of the company's revenue for the year ended December 31, 2024, was derived from operating lease rentals[80]. - The company is dependent on operators for revenue and cash flow, with substantial reliance on operating lease rentals and interest from financing receivables[69]. - The company has two major operators contributing approximately 25.7% of total revenues, with Prestige Healthcare accounting for 15.6% and ALG Senior Living for 10.1%[327]. Financial Performance - Total revenues for 2024 increased to $209,847,000, up 6.5% from $197,244,000 in 2023[267]. - Rental income rose to $132,278,000 in 2024, compared to $127,350,000 in 2023, reflecting a growth of 3.0%[267]. - Net income attributable to LTC Properties, Inc. for 2024 was $91,040,000, a slight increase from $89,735,000 in 2023[267]. - The company reported a comprehensive income of $92,584,000 for 2024, compared to $88,853,000 in 2023, indicating an increase of 3.3%[269]. - Net income for 2024 was $94,879,000, a 4.4% increase from $91,462,000 in 2023[274]. Assets and Liabilities - Total assets decreased to $1,786,142,000 in 2024 from $1,855,098,000 in 2023, representing a decline of 3.7%[265]. - Total liabilities reduced to $733,137,000 in 2024, down from $938,831,000 in 2023, a decrease of 21.9%[265]. - The company’s total equity rose to $1,053,005,000 in 2024, compared to $916,267,000 in 2023, reflecting an increase of 14.9%[265]. Cash Flow and Financing - Cash and cash equivalents decreased significantly to $9,414,000 in 2024 from $20,286,000 in 2023, a drop of 53.6%[265]. - Net cash provided by operating activities increased to $125,172,000 in 2024 from $104,403,000 in 2023, representing a 20% growth[274]. - The company experienced a net cash used in financing activities of $226,724,000 in 2024, compared to a net cash provided of $80,416,000 in 2023[274]. - Borrowings from the revolving line of credit amounted to $27,200,000 in 2024, a decrease from $277,450,000 in 2023[274]. Investments and Joint Ventures - The company has eight active joint ventures with a total LTC equity investment of $378.6 million[102]. - The company entered into partnerships with ALG Senior Living, exchanging three mortgage loan receivables totaling $102.4 million for controlling interests in these partnerships[259]. - The company has committed to fund a $26,120,000 mortgage loan for the construction of a 116-unit community in Illinois, with a current interest rate of 9.0%[361]. - The company had investments in four joint ventures (JVs) that owned 31 properties across three states as of December 31, 2024[375]. Risks and Challenges - The company faces risks associated with public health crises, which could adversely impact occupancy levels and operating costs at health care facilities[70]. - Federal and state health care cost containment measures could reduce reimbursement from third-party payors, adversely affecting operators' ability to make payments[73]. - Increased operating costs due to inflation could adversely affect operators' net income and the company's results of operations[79]. - The company competes for health care property investments with other developers and REITs, which may affect its growth strategy[87]. Compliance and Regulations - The company is required to distribute at least 90% of its taxable income to maintain REIT status[96]. - The company may incur significant compliance costs due to new privacy and cybersecurity laws at federal and state levels[117]. - Regulatory approvals for health care facilities could delay operations, affecting the company's ability to collect lease or loan payments[75]. Market Conditions - The company is exposed to market risks associated with changes in interest rates, which could impact future earnings and cash flows[242]. - Disruptions in capital markets could affect the price of the company's common stock and its ability to obtain financing[112]. - Interest rates for 78.9% of consolidated borrowings were fixed or fixed with interest rate swaps as of December 31, 2024[245]. Impairment and Losses - The company recognized impairment losses of $6,953,000, $15,775,000, and $3,422,000 for the years ended December 31, 2024, 2023, and 2022, respectively, related to real property investments[301]. - The company recorded a significant reduction in impairment loss to $6,953,000 in 2024 from $15,775,000 in 2023, a decrease of 56%[274]. Future Projections - Future minimum base rents receivable for 2025 are projected at $116.2 million, with a gradual decrease to $69.6 million by 2029[334]. - The exit internal rate of return (IRR) for new joint ventures is projected at 8.0%, indicating strong future profitability potential[358].