LTC - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello everyone and a warm welcome to the LTC Properties, Inc.

Third Quarter 2021 Analyst and Investor Call. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions].

Before management begins its presentation, please note that today's comments, including the question-and-answer session, may include forward-looking statements. uncertainties materially. cause and events results risks differ to to that actual may and Subject and are time-to-time, risks XXXX. Securities most These uncertainties XX-K and with Properties recent Exchange the filings Commission December from dated including Company's detailed the XXst, in LTC undertakes or these to to forward-looking the date revise circumstances events or after obligation of no statements LTC update reflect this presentation. is being recorded. event this note, Please Wendy now Simpson. turn over to the I like to would conference

Wendy Simpson

quarter you, operator. to everyone call. Thank LTC's XXXX, Conference third Welcome

At Kessler, Co-President is Malin, that have Pam our and unimaginable care the active same created Chief industry of the investments Financial is in pandemic. Investment Joining I challenges, Clint are the that of me necessary saying and pleased from grace successfully have healthy open and the with our is Officer, and ongoing new operator time, and and able handle executed Co-President by national Officer. have component we today health recuperating proving several comments our by to Chief incredible network on said an and eliminated seniors in and before housing strength to I a $XX safe am the U.S.. so be the pipeline. industry million poise,

and the seems the continuing and our It COVID reduce has of mandates normal. staff While begun patients the in high new among industry In to among holds the challenges remain rates LTC strength gains there potential to should promise are portfolio, new continuing, us to residents of the vaccination of the still 's the vaccine into continue the believe and help that buildings. some year. overcome, I navigate PR. continue are recovery impact and will occupancy

and and industry into our constantly is the The staffing problem operators retaining to discussing I real, trouble qualified that staffing. LTC and an like to and find Before moment turning not away are residents has due solutions. employees. operator patients resulting I but specific to working our not creatively viable spend are challenges. yet shortage spoken Operators very I'd a finding to had discussion, get have labor the

We if current increase that could operators the from have not they constraints, labor occupancy. heard several for

increasing demand. wages help retention So and bonuses they to providing meet and sign-up are this

Additionally, up freeing in-person now Requiring is to unemployment insurance re-enter - for open, to COVID-XX able workforce for school related shortfall. be income and a to parents that work to return ons make expired. some have to the add

part better credit provide keep However, sufficient most work. families be legislation, receiving the build the to to likely are tax back continue will is returning people from [Indiscernible] enough of that to some to proposed and support public

proposes The days XXth billion $XX our ago for this to support the providers There rural XX side bill plus the the love distribution of living through care Phase support state. few recently We to been about through to Rescue retention. is passed fund. deadline. staffing, a The million X example. in communities skilled states relief and follow for providers another a where grants to for available we properties million continuing. aid for and reported American other is Government available assisted billion nursing other On see for that to fund $XXX.X October And would distribution in help recruitment on the for $X.X care-based grants industry providers Texas, it has long-term own healthcare bill requesting $XXX and closed in Plan. provider portal the

Combined financial guests has calls, variant with by this provider pause been increasing funds in caused receipt already there anticipate our has pandemic. Delta year the In real earliest. the at we recovery a earnings quote, staff both throughout and support believes the a Parkinson, congressional So divided congress the a operators costs that federal we of that on of past change will state and legislation I Mark magazine, the sector. a with passing stemming help need recent difficult, said, we bipartisan are make the governments. But that who later are don't approval. that a He providers from made for require continued is the interview by in going need from experiencing, to action the efforts highlighting

more However, solid variant has the remaining since over began. to truly the or continue months. I And than COVID I it pressures as industry short our a surge, new that been the footing some hopeful highly will contagious pandemic of believe coming abate of today remain that our

our income interest XX%. Now, care third were senior excluding senior mortgage moving to collections, quarter. and Rent lifestyle, and

for We abatements have change and space no see occupancy and and up needs demand deferrals don't substantial the quarter. expect rent we humped in requests increasing, to big care, in deferrals With new abatements. received rent fourth a for

same portfolio the and last of amount the that the We expect which complete quarters, the operators in continue awaiting occupancy request For changed. received not has relief permanent. is more one Senior small kept exception is licensure, to providing The we expecting we've are of some several gains any that of building transition become them do subset time. Lifestyle from at with Jersey until the New

well. the We as senior care portfolio transitioned have fully

resources and to with successfully have operators be operators solidifying and working these to grow desire current With further relationships excited addressed, with stabilize occupancy. we challenges and the who are new operations

completed and $XX investments next a I have on several over focused investments risk be mentioned the in we strategic remain healthy built believe reduced forward cash flows, deals recently profiles additional months. million that look announcing have what and shorter-term we to earlier, We to pipeline. As

completed accretive out to our liquidity dividends LTC our investments, maintained these XX%. third items, dividend to ratio, returns for recently ratio be shareholders. including the approximately was act quarter. our the items to payout by We The If non-recurring access ample for would former and quarter non-recurring opportunities dividendl per payout pro during used FAD third have monthly $XX.X shareholders. approximately to on excluding common share performance, in XXX% We we on $X.XX excluding million provide our the quarter paying

approximately does with results. or historical recovery levels. quarter With ratio fourth expect revenue ratio to help of improve senior care the the above include quarter, to of bring the of senior XXXX and note respect $X.XX approximately will FFO guidance, from any this non-recurring Although in payout to expect line preferred lifestyle deferred from additional this items share, we we additional the to XX% the remains well which portfolios, $X.XX releasing for the excluding third with more of FAD payout increase FAD, investments. guidance our rent our not Please per

Pam. will to Now, things over turn I

Pam Kessler

proceeds decreased and on Washington. of third million and in nursing center the receivable rent, the X.X XXXX Lifestyle decrease Total with was last third the the year-over-year. XX senior expense related we outstanding million real and scheduled rent a impairment thousand Florida offset sale we in and compared assisted notes sale capital by care income which higher year's releasing XXXX XXX a from recognized last property escalation, offset in sale Thank an XXX,XXX partially to of living estate sold in was by thousand The in portfolio, quarter. and development In decreased third compared this with related received prior-year Senior related to offset lower of partially in lifestyle, related current write-off our balances to quarter senior Rent charge fees to deferred principal from sale. tax and unpaid charge $XXX principally common received income of Wendy. was unsecured of revenue the property primarily per comparable in sold properties partially you, year's X.X gain NAREIT XXX line from thousand completed and due gain line of rates senior fees The FFO interest XXXX. impairment payments revenue quarter, for [Indiscernible]. senior first revenue, the for quarter. straight was damage interest discussed settlement During credit. closed and decline third care to related pay a prior-year on higher rent $X.XX annual quarter of Washington. to a on to previously mostly quarter, improvement decreased from Net the year. Abated of our and and a skilled decrease credit, our related recorded balance and downs the Resulting care. in quarter rent million Interest available increase increased insurance a property projects, senior of a quarter a year-over-year, on Transaction diluted on first by our property mostly line $X.XX was X by and funding, with last settlement the costs a shareholders of year the share due

in due abated deferred to share the was rent, non-recurring compared X $X.XX Excluding XXXX. this partially Lifestyle, in expense. items and XX funding, quarter per senior third $X.XX of the lifestyle quarter decrease decreases projects, resulting The expense. higher items, Care with mezzanine by offset completed higher lower These FFO portfolio, Senior excluding properties and with and loan non-recurring were G&A and from releasing from Senior revenues, interest development rent receiving

third XXXX million $X.X we $X.X a quarter, loan. loan and the mortgage a During funded mezzanine million

our of two investment in Additionally, a to properties mortgage of $XX.X the we Subsequent projects capital million the end $X.X Clint in activities we for funded a will own. we million. improvement total discuss on funded quarter, moment. loans

of $XX.X million of During under ample million cash And million the available This line notes. million line outstanding our our ATM. on borrowed principal $XX.X we quarter, have senior of $XXX.X $XXX.X million Currently, with XXX on us of under unsecured we in leaves million. $XXX.X third unsecured credit, $X.X scheduled pay hand, with credit. our liquidity million revolving on our and available paydowns

annualized We charge over I'll strong quarter, a estate and annualized recently remain for and And was X.X finish debt-to-enterprise for charge annualized debt a fixed the the X.X EBITDA metrics times, five long-term real abatements. value coverage adjusted end adjusted annualized deferrals of maturities my estate rent debt the significant years. our real At discussion with times. coverage next XXXX was of have adjusted fixed ratio The And of ratio investments, was X.X of times. Proforma XX.X%. with credit to X.X EBITDA no times. for XX.X%. value debt-to-enterprise completed third adjusted

and rent interest of quarter lifestyle, As Wendy and collected senior mentioned, XX% excluding income. mortgage senior care third we

million During we abatements. in and deferrals rent XXX and rent X.X quarter, provided. thousand the

small that have noted, relief from relate to Wendy operators abatements deferrals of ongoing us. receiving the As and same been subset

Senior reminder, As in pay XXXX. a us did Lifestyle rent not

we With operators these the is properties. who lease and receiving are rent now property discussed, exception of contractual Wendy transitioned the the one from portfolio the

XXX,XXX totaling in not Clint as In HMG rent more Although totaling from pay Care we rent receive provided to rent quarter, the did deferrals detail. performance expect us rent provide do and third Senior improves. we will abatement XXX,XXX. October,

We to November of have agreed and deferrals to provide of up XXX,XXX and rent each December of abatements to for up XXX,XXX XXXX.

turn to I Clint. Now, over call the

Clint Malin

today putting Senior Thank and you, I'll our Senior Lifestyle a start bar on Pam. Care by portfolios.

discussed, the By and we the have Senior Senior fully Wendy the transitioned portfolio portfolios currently licensure Lifestyle generated XX management. total, expected New operated in As Jersey Lifestyle in gains property one these under transitioned, but the In occupancy XXth been for buildings, shortly. have of with has by large, properties this new of

buildings Senior for XX% Occupancy was of XX%. for With September Growing of to Care month these portfolio, with XX%, basis late XXXX. the for to additional August, For December was XX occupancy for EBITDA properties XX-month X provide rents. excluding of X-month a properties December respect in six XXXX XXX the thousand. the was month we these XXXX. some for the under to one-time the June settlement transition an which the these On exchange I'd the and increasing Abri EBITDA a thousand. XXX of the market-based million orderly in September like payment are a on month excluding basis, assistance XX, XX Senior of with and month At a $X.XX to Care stimulus with stimulus buildings, Services portfolio portfolio. properties trailing in trailing six facilitating of annualized in Health on for cooperation XX% made for reached color XXXX LTC

of X, October received liability it an was has operation a to provider and entire sometime COVID-XX this collect of affiliate Program. capped and performance This $X.X the to rent been and Accelerated liability HMG repaid. It Payment HMG cash Senior HMG responsible lease master portfolio, of property the is liability 's during rent establishing based known for in under the assume Senior As million. Advanced on commenced Medicare by one-year currently flows. leased LTC with will repayment cash to the expects stimulus it rate fund add took and at stabilized a lease When XX a Care under agreed Care portfolio first funds the healthcare Medicare is assumed show. flow. properties the XX after the on LTC for agreements liability, existing as of master intention improves to is XXXX rent our between a from to lease HMG which

We maturing $XX XXXX. also HMG working a agreed provide secured loan million to XXth, September on capital

Balance allowed loan on of the an in Sheet provide expedited portfolio to This lender. basis risk Our strong based this a us timing HMG to Texas. using third-party is mitigate

additional earlier, for million snips. mentioned Wendy recently support As the XXX in announced an state

XX, Next, up senior operational. which in at most Weatherly living now cord our operated XX% occupancy that XX% to an I'll are provide recent saw rise on June update XX. from field projects by September development Oregon, at is

Resorts' September in Blue June XX% from Medical up at grew Missouri XX% Springs occupancy XX, to at For XX. Ignite

will portfolio at of and don't coverage I pandemic a given caveat good believe time, environment the performance discuss with future is numbers we our creates. the currently it that the this Now challenging indicator

note our portfolio same-store Before and given I the detail senior please that coverage our care qualify lifestyle, longer senior no for transitions. numbers,

was numbers. are respectively coverage EBITDAR XX-month fee, our and QX they EBITDARM X.XX living from reported, a assisted X% as times excluded portfolio. So X.XX using for times these and trailing management

coverage funds received by was operators, times times stimulus and X.XX Excluding X.XX respectively.

was skilled and times EBITDAR our X.XX as For times portfolio, reported, EBITDARM and nursing coverage respectively. X.XX

respectively. coverage and Excluding was times funds, X.XX stimulus X.XX times

portfolio. are of our XX% Because Private our our XX, units, at September XX% includes providing partners basis, us beds. which approximately expedited and for on XX. of March a this pay pay was XX% in XX% Now total for trends, of given have same-store XX% private the nursing same-store at approximately at same-store some to our occupancy and XX, XX skilled our June voluntary and data information September occupancy we're as

monthly For XX% in skilled March. our average portfolio, June, XX% and in September, was occupancy XX% in

approximately closed As investments. Wendy we mentioned, in recently $XX million

by first mortgage skilled was a extension million The Louisiana is loan the regional new X nursing for with one operator a option. The years, purchase XX-month $XX investment of in LTC. the to term center

satisfaction million was assisted in to date, later a purchase living be The term community for an loan memory a mortgage $XX.X second is a the operator To LTC. new of and operated million Florida. loan regional X and be investment an by of care includes for to the addition at of the loan funded conditions various years, $X.X memory care construction approximately commitment, for to a additional subject to property. The

a Missouri investment loan was of by third land skilled future the term one of The a post-acute year. loan million center. for The in is for secured nursing $X.X development parcel a

weighted expected the loans million Oregon, the venture of new independent average is annual of X.X an We for to are operator joint to combine regional The options. real was estate for are Ignite negotiating extension loan mezzanine Central. potential with total, final The to of with The by LTC. currently income interest term the a development a generate investments million. XX-month $X.X term for in years. community refinancing investment loan living approximately of $X.X two three is In years the operated

million. Our pipeline In near-term to private partners, more with LTC valued opportunities, of new at and pipeline remains and mix than including $XXX to nursing skilled our pay existing. regional nice healthy is operating for total, both and

we remain value, does complete believe in we elongated some [Indiscernible] cycles reflect properties optimistic to sales is Although our investments. not remain and true ability for accurately pricing additional what their

finance on deals. We are our focus keeping structured for now

for strive strategy, hallmark flexibility long-term We with we to with has This one are operators relationships commented, strong grow. and sufficient continually operators plan provide Wendy investment options have who ability to our provide As financing creative looking to been to we of the continue. to a and Pam solutions. liquidity that regional and

Wendy for Now I closing will turn things to back remarks. some

Wendy Simpson

industry, levels strife operations, exactly are and away we midst Pam I that we predict in What pre And this of the certainly you continuing to take signs industry, the when is again cannot you, once of to space is but be hope. and we'll have I us believe a like recovery. in start is that has we're -pandemic this pandemic. for not Thanks investments. caused increasing, proud since are most It point, demand give growing, for and Clint. return our I'd while from care operators, pandemic easy getting call while more seeing firmly employees been I of couldn't Occupancy strategic need to making they the grit the our of shown

population. the vulnerable As confidence to to nation's providing require, our serve solutions with continues they look to most we grow, forward operators the financing

of favorable on long of more secure. strengthen operators focus We term. capable period. recovery regional ready portfolio are in plan to a more has but seeing are for with open to difficult use to built the our take what we and Operator, advantage We in relatively us stable we're return Sheet and through with demographics. we'll Balance be may to We to process, XXXX. industry to a well-positioned to been a growth call small, And engaging resources further our the we And questions. now

Operator

you. ask When is Thank your [Operator phone Instructions] preparing likely. please question, that unmuted ensure your to

Our Kwan Sanabria, comes first Capital Kwan Markets. please go from BMO from question ahead.

Kwan Sanabria

hoping the more us about give morning. a bit go-forward Good rate. I you. thinking could color was you little Hi. about Thank earnings how insights just run you're

how more number think start and about pandemic that [Indiscernible] think into period? in we down as then talked quarter. care senior $X.XX between third senior You from or XXXX how of -- that pickup incremental lifestyle to believe maybe external you the but should you trend s, any this the How importantly, about investments I can two and FFO about it growth break was

Wendy Simpson

the Because in comes there, external The leases. new pickup it Kwan. assumed had or third investments. quarter from leases -- the the the Hi, Sure. is

it investments. external pipeline on healthy So we're next execute mentioned, months. hoping over that a Clint we And is to the have as XX

messages, turning cautiously we're to growth. for think So I optimistic, us we're the

-- any we So assumptions. don't additional when guidance, don't we put we investments in give our

to what anything announced. we've the $X.XX than So other doesn't already include $X.XX

a So if that's I run guess so. if happening, asking absent else good you're -- think rate, I anything

Kwan Sanabria

some lately Okay. X caused that of anything level touched how of high, want the your on not of caused then this else happening, to frame that with the to comfort I peers like about confidence curious impact tenants just you at X other point. to don't given go seems occupancy improvements need that we're incremental just But of one for -- that outset. other your the just about XX, And strain going hiccups. labor any I XX know level. despite and for at mean, occupancy absent kind low, It and on it. labor on labor have that may bit to on unknown maybe thoughts a specific about a your deferrals. tenant how curious deferrals you

Wendy Simpson

support subset some been that. there past fairly now, helping are government But, constant operators giving sit operators although has labor Well, rent for has are through of quarters. where we pressures, X to been right said, we are that the confident. like to the And we're we've small the pass rent increases able The

Pam Kessler

talked Wendy more given as and support about. Clint

we world are and a sit where So now, lot there confident can the are up. things we crop right that that ever of unknown is changing fairly

with sit am right now is the don't ball opaque now. -- my known of fairly my Where know like hedging all we just I am I sorry, crystal very So I best. confident. but like right

Kwan Sanabria

don't just operators, versus if And different is know of the skill costs labor for it's seniors the for just sense one me, what line I for then your housing. last any

XXXX for percent labor would a what us appreciated. or could -- guideposts labor basis. the How the much basis. increases percent and passed of budgets about help being high some are on Any cost operators growth see be through or But You hourly you across their that very curious. economy the thinking line are could that on just headlines are be that with a in the

Clint Malin

happening does It's and front XXXX? our and for go budgets of on center to the for what's all it operators

Wendy Simpson

yeah. in Which budget fourth now. is happening the right quarter, They

Clint Malin

with reimbursement for some the benefit a example, in provided to some nursing. of Texas, Texas. grant that, an increasing the they as In be similar on passed in component was skilled this had will that to So Michigan support help operators they

are with on when at So, line one forefront. definitely are COVID address the agency, there's being when that spoke but in on trying we Well being bonuses, staffing to is second -- business with looking the item needs-based And issues our and business operators, a they there is of how speak discussed. -- are we we to has do Pam on creative they the and it that's to find those work. what And everybody were through to of stimulus And through to slides, offset on to escalations some experimenting that people skill make on. something this the hyper-focused private as it XXXX. are costs. is in government this sales in mentioned and is see ways working pay helping point But at happens time, wait up and rent

Kwan Sanabria

Thanks for the time.

Clint Malin

Thank you.

Wendy Simpson

Kwan. Thanks,

Operator

you, Kwan. Thank

Our Capital Jordan Sadler comes from of next today KeyBanc Markets. question

Your line go is open. Please ahead.

Jordan Sadler

Thank And morning. good you.

just to you're contribution Trying just how cash fourth cash might to little next bit but HMG. flow deeper. flow that the in wanted can a in terms quarter, be? rate if cash or but be run base offer assume the insight helpful. year specifically trajectory, what Any point So the paying on I through cash flow nothing in maybe rent could would on based that you contribution might contribution flows. of -- you they're the know assuming dig understand more I brand flow to

Clint Malin

Sure.

correct will rent You're included that. there. be the for There in fourth-quarter no

give will we Jordan, And just reason a context. did has lease again, performance because is cash-flow declined. I So the here this numbers why you for some

and frames comparable back XXXX give of you So EBITDAR basis. run XXXX numbers for the on an you and different Time as I'll give I'll numbers August rate.

million. obviously the XXXX that point annualized was million on first TX, in Care then and $XX.X -- a was year, And we a was their back The TXX transferred on And the million for basis, to So was this $X.X $XX.X going Xst. XXXX. process EBITDAR EBITDAR on XX back October million. in August, On it $X in time, X and trailing $XX.X August and it's at context, trailing for XXXX in bankruptcy. Senior of XXXX, million. Historically,

what are so lease team ourselves positioned Texas familiar these in whose management regional numbers we it improvement ourselves with strong a is in this done positioned has assets. flow during first year And we cash we've to happens. the operator with in that And participate as

that's what So has what and done context historically. of -- was some this recently

Jordan Sadler

And what percent does entitled idea, are -- just is it to the worked? this what structure you us of -- the an what's give How the what cash flow? are Basically, to?

Clint Malin

they an participate It cash is that their and flow. management get we fee in all

Jordan Sadler

the XXX% fee? what's above management the fee. And management

Clint Malin

X%.

So in I a numbers that these X% fee was provided. EBITDAR used

Jordan Sadler

significant There to is pretty has Interesting. first? Essentially, to repaid actually come Okay. once the be million liability a going $X.X contribution be XQ.

Clint Malin

Correct.

my cash -- We flow. I As In correct. comment, back that. from I mentioned mentioned paid

Pam Kessler

that's not any this for revenue why And we're expecting year.

Jordan Sadler

Okay. the But XQ, described, it you should most be something. -- given there'll trajectory recent

Clint Malin

sometime in It will XXXX. be

that's into, a ball looking quarter falls forward. which it crystal to As

forward. intent put we've provide mentioned set be benefit is we master lease going LTC but did into lease together can and to So obviously then, would HMG flow. structurally this I TX -- a rent as the off filled. upside And can dropped a the my from long-term we cash put Both in once is we comments, what and lot, where comfortably

Jordan Sadler

TX The $X say? you million? was Would

Clint Malin

correct. is That Correct.

Jordan Sadler

or of rising and senses, that Okay. was transition a you attributable expenses, that described And that like is -- issues Delta the of is was to that to from -- sort as what TX, loss transition issues? so TX was

Clint Malin

transition resources issues. imagine I Occupancy stayed when senior would settlement I the were care of we stable. on the side. say relatively That's lot I took agreement. time it's a and negotiating

these agency usage buildings. an seen uptick the have in we [Indiscernible] So on in

-- who side. a the been usage So, operator, the reduce agency on can Texas-based has HMG, we're and hopeful that normalize is been that's expense

Jordan Sadler

the for the Did you portfolio? give occupancy

Clint Malin

[Indiscernible] I standpoint. just did do well a from as not. that comparative

December XXXX XX%. of was XXXX, September is XX%, For and it of

Jordan Sadler

And like I it to time, assume? XX this portfolio was a August Was once going a or? upon stabilized what back

Clint Malin

XXXX. and XX% the for XXXX was same

Jordan Sadler

Okay.

then, it's I want helpful. really one Pam more, just And to don't I out That's Okay. have here. leave --

It's leverage abatements you've of as the and these some ticked up. bit So, has a understandably. quite obviously, deferrals had

time. to when of it you back expect been progress are come throughout now? same your leverage around sort right around will the how next at What So you've thoughts And it investing on year? also

Pam Kessler

Yeah. Fair enough question.

leverage As that and we've But we we to stance lease at properties talked about quarter quarter HMG made Senior end. on the kicked has and for as the the Lifestyle especially are with you up and subsequent the investments borrowing begins pay noted, of as noted, that leases their end to XX% on a with also and But our have should debt. flow fund not not cash to mixture generally should come surprise all look and investments we new leverage down. that done, been equity of we've pay, what so that. changed XX% on you, That's we historically

Jordan Sadler

Okay.

sort So, follow-up? is there an be of appetite would to do equity down this here? I the guess

Pam Kessler

funding XX-XX, equity. there that do if that would yes, be we investments, some would -- imply, you're we when Well,

Jordan Sadler

Thank Okay. you. [Indiscernible] Okay.

Wendy Simpson

investments whatever to sell think not would right for funded mean, be the have at distinction out we're you're been next investments with assume fund that How looking debt. investments I [Indiscernible]. new over sales. or And wouldn't I fund X all you're are looking If I past and now, think equity the aggressive our that you sell, size you substance, looking and we a -- years And and we proceeds rational. anything all has to don't assumptions of right have right new I were from with that year anything, our for now

Jordan Sadler

much. you so Thank

Operator

Jordan. you Thank

go of from Capital is RBC Please Michael. Michael next Markets. question Our Carroll ahead,

Michael Carroll

labor that to is the comment in including taking your senior's lack some patients, due housing comments care the labor nursing of facility related Wendy, that of to and earlier Thanks. turning is regarding or pressures, of only, patients regarding also? away operators those skilled

Wendy Simpson

It's HMG. them. markets we have to analysis both labor other problems. problems a conference everybody have of as of XX they And after they did had have transferred It's call some properties didn't not markets, HMG at looked that an LTC and labor we they and In of all the them.

problems, labor but floor, but to to our would can living it's up say So, for they there there for nursing the years. We've up haven't are closed any. is say Operators having opening floor and had are generally many having there I aren't deal everybody of they assisted get not skilled our Operators gone where pockets more this across until and U.S., labor, real are some salaries with the

that's this a system. mean will flow it -- is causing is I will through this a it but catch-up So whiplash, the us

Michael Carroll

of they with said that nursing And you on facilities, if wasn't I'm housing the were ten fewer facility turning seniors to skilled be talk And prevalent like more patients? though operators? side? them away how skilled it'd mean, many nursing assuming I

Wendy Simpson

Yes.

Michael Carroll

then t or funds the think the it. the ratios that that he coverage includes guess I in I And Great. stimulus Pam, coronavirus supplements funds, you -- termed the Okay. quota stimulus

are amortized the the either received time funds those federal calculations there state in when is or from counted a period or is it of over Now, cash governments? actually

Wendy Simpson

No, period it's amortized. pull They of a time. over in it

there's that closed Sheet amounts statement So sitting on the yet. Balance haven't income through been

Michael Carroll

the a throughout if they year, these does get funds Cares when statistics? long how the in coverage then received amortized? there does beginning Act So the -- Is of amortize that that

Wendy Simpson

it hard virus long corona Each amortized It individual. occupancy, in an to their property to there's through. If related will how the it's be a offsets decrease is losses. losses estimate

over guess bringing it six XX every would methodology in. I uses operator So to the different next a And months.

Clint Malin

look reasons. comments right And the coverage reason for this the challenged these very why is now -- at is in to

Michael Carroll

in how lot you on repayments I those the straight-line back forecast I expect deferred how and then question, paid believe mean, do to supplement, a those deferred, of guess going years, XX that a sense. those occur rent get page are And planned? maybe confident you the confident time? you as the rent of that makes mean, included the several that repaid repayments that's That I when that to are I mean start are you I more scheduled on next repayments rent over will or general the as

Pam Kessler

put are other on The are we fairly repayments we're right XXXX. everything that forecasted about. confident are we XX, But that till are repayments page now, not in confident fairly there of

Michael Carroll

Okay. Great. you very Thank much.

Operator

One. Capital from a Please Instructions] Daniel. go ahead We question [Operator Thank of you, Bernstein Michael. have Daniel

Daniel Bernstein

Good morning.

end probably sequestration It to XXXX [Indiscernible] Just on year. is delayed the kind could back X% want if There's they're too. risk ask but not that beyond gets the extended. seems COVID like or and maybe ends end There's X% a snips of call to this labor. enhanced phased-in, holiday, the broader emergency for of the

talk to within talk and to when So sense space? we you for thinking OCA, operators, about should items you when stand are where of if risks that you those additional 'XX the those get do be SNF any

Clint Malin

-- always the risk skilled industry that is the in that's unknown. nursing Dan,

pandemic, how the government stepped at is support of I obviously at for think the during additional of you industry, the some and provided for examples passing is is it positive. to risk. look buildings, Texas support recently in the look course But a a which

and forefront are the at, component on a is looking the still definitely operators. is item. it So the people large, but risk of staffing by the That's main

course But of happened regarding what's that support. that uncertainty reimbursement it. focus be during and out and continues There's government's the there. the be out there the on continued will belief pandemic to So been a has always there,

Daniel Bernstein

there's labor more that within suburban know but areas. trouble you are areas to rural finding component. I better staffing more having worse more you labor portfolio, -- Okay. labor versus then Are of facilities are or up pockets And finding maybe issues or back urban the the

Clint Malin

and a really just of having a they say hard depends it have as another It's an and challenge finding it's the say combination market really challenges pinpoint it's they're very uniqueness may It's to. rural section down on Dan. interesting pulling it location the markets. operator really operator to and in markets across their urban mix Operators market as One in far

Daniel Bernstein

funds, purchase options could for some there provide is, as sense and in exercised one in XX. be what guess, sense of be exercised Instead equity. I me And thought reinvest question options were of could That then some there Is more I using any XX. well. just Okay. any purchase to

Clint Malin

California. engaged But one could right on I'm that operator, we're with that two purchase that We have in now. assisted communities option in XXXX be through working potentially living exercised

broadly being do that option to get environment you able ideal may that. for be appropriate senses the to that, assisted as with exercise As can imagine, financing just more not purchased the living, and

of can period or that operator regard in engaged assistance extending time. in maybe we we any So a actively for to longer are that provide out with

So it's size really XXXX. something we're about. option actively of only That purchase talking in is the

Daniel Bernstein

but models sale from asset our that pull looking up should I there. likely limbo, Still less Probably it's on

Pam Kessler

I it Push XXXX. out. Yeah. wouldn't it in have

Daniel Bernstein

it. good. That's had. Okay. I Appreciate all That's Thanks.

Pam Kessler

Thank you.

Clint Malin

Thank you.

Operator

Thank you, Daniel.

We have Sadler a KeyBank further from of Jordan question Capital Please Markets. Jordan. proceed

Jordan Sadler

to loan will or drawn now expect how rate next throughout is capital a just loan, what terms we on should perspective? the wanted up it and that working be follow that the timing from the the is and What to or be Where it year? I $XX on Hey, are million.

Clint Malin

Sure.

a that a mean, since we the X% is on funds. a up lease, Jordan, ties we X-year as set is lease loan, drawn being those monthly the And provided to on and So, term flow cash interest rate it's down basis. I

transition getting of provider far the agreements place, no, just as assumption So typical Medicare as provider in rim. there's the

And bridging just really so it's that.

into by drawn taken the be the down that that want But to would really will We we the didn't lender. when third-party financing we then So just the introduce it'll struck the ABL out slow XXXX, the through of I deal time that transition. mean getting we expect did be settlement, majority a down. on portion traditional

to the risk secured sense -- had lender that to made actually but of for HMG accounts to execution we just a is the with it HMG. at on principals it already us Sheet for sense extend has by the the of personal and it. receivable, strength was sense it tight So a engage was provide for and it component third-party and and us capital us that this, has guarantee attached one, HMG made frame a minimize to working which Balance made -- do time

standard loan. So it's a capital working

Jordan Sadler

then Got and finance is right you behind question investments have the process for structured it. other the now. strategy I and And just thought the the

Clint Malin

really of upside. don't price that And points now and the opportunities exist. seeing structure, invest that for quarters we've triple-net for of in about asset, an market paying we we in not as as and number see they're been reflective it's just analyzing us where what now stabilized, up a we especially talking [Indiscernible] participate on assets existing

to not it's a upside, for little wait and more cash buy that's now -- structure. the then and something So challenging flowing to

capital think structure, plus that to normalize seem if there we've lot leases risk of finance seems the would be get things we And is also where just a seen at structured do some lower and strategic point makes where, sense to at to transition Obviously, -- flow deals of from fair, opportunities this it So It flow. on time. Senior and could be at actual back we as cash more cash in aspects point various in investments focus that. mentioned, blend our lower we're term, Wendy intent of the Lifestyle loans given triple-net as loan opportunistic selectively a long to to

Wendy Simpson

in -- of We're arbitraging low effect our cost cost of capital low borrowing. our

replacing we're of and we're FAD HMG, or so Lifestyle delay that And having some assets return. they the to Senior as

but cash loan Investments, So [Indiscernible] when pay will investments that return, use off term, do that hopefully these more made we'll to we've they and

Jordan Sadler

most in or none Rright, of them other, own what none recent are of to made or loan ones particular? have you've this crop XX the you

Clint Malin

is correct. that No,

Jordan Sadler

the know during years. I for makes haven't any been industry with for Not this context been sense. to few guess than and the attention context about the the feeling rationale context. the in focused the last here, the I better during my the And and pandemic, point but which the position you you guys in that about comments call, previously, paying my have question That's question, I other have

you. Okay. That's all it. And for got I guess I you Thank guys. that's

Wendy Simpson

Thank you.

Operator

Thank you, Jordan.

questions. no further have We

hand So you Wendy to back any would remarks. to for I Simpson like closing

Wendy Simpson

to quarter results. you our we weekend. great you us year-end fourth this and Thank all look our call a on after Have joining for forward to talking

Operator

you today's day. you all concludes Thank great We of for rest hope joining. a call. your have This

now may disconnect your You line.

LTC Properties (LTC) 29 Oct 212021 Q3 Earnings call transcript