Earnings call transcript Q4 2022

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Operator

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 uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in LTC Properties' filings with the Securities and Exchange Commission from time to time, including the company's most recent 10-K dated December 31, 2022. LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. Please note this event is being recorded.

I would now like to turn the conference over to Wendy Simpson.

Wendy Simpson

welcome, LTC's and Conference Fourth operator, Call. you, everyone XXXX to Quarter Thank today Co-President Officer. Pam Officer; am by I joined Kessler, Malin, and and Co-President and Chief Investment Clint Financial Chief for XXXX hard of same XXXX. was for we one year the a anticipate LTC, positive much and invested $XXX Last financing a of million wide XXXX. year, we making year it since using variety vehicles, our more than strongest investment longer disciplined disposition underperforming and diligent in to no of or that were portfolio operators. the rightsizing and We through business either assets were are challenged through core our our transitioning

as has taken diversify momentum carried sustainable Our into to the portfolio to and future new year strengthen we've further growth. drive steps our

been Our XXXX, busy in totaling year-to-date. business has closing development already extremely over team investments $XXX million

to void competitive additional marketplace. the traditional Access in right capital strong regional identify focused now facing. operators sources, fill to REITs solutions on many to more an market. bringing in creative capital and are are financial like working growth has tighter seeking financing to who uneven opportunities LTC, making the We gotten from remain financing operators are We the flexible

to data. While of seeing positive industry we some our labor are continue remain, in stability the operators from challenges inflation, signs as more the pandemic. including and be appear we recover gaining Many to

with from of room, private breathing rents. funds tax much employee the pay repay our some of our to some Receipt retention operators And is partners without are rates allowing resistance. raising deferred credit them providing

particular skilled however, of health states and PHE, in skilled emergency, operators ending expected and LTC for the should in reimbursement nursing, One benefit areas. or realized rate our the public on place, There will several to Additionally, stay extent increases it is including those industry nursing many what our and are three in remains be ability the the XXXX. impacted. day PHE, to at unclear to tied skill XX, present May waiver with the headwind benefits

management, I and provide real related ethos to do which served our monthly continue support our work estate pandemic throughout through believe much under maintaining has the to to done to while dividend. financial challenges, has been address so. great industry well We conservative able needed we us Our the pandemic regular We've operate will operators cycles. of many

Our XX% fourth rate rent HMG's which to payment items, for FAD will was and payout primarily reduction of Pam ratio due XXXX represent temporary quarter, the detail which rent non-run shortly. Anthem's the increase,

Given of ratio quarter, items, for range that the results to FAD mid-XX% long timing of which nonrecurring we term quarter to approaching payout these low our expect excluding first positively to XX%. fourth is impacted ratio were our the by increase payments, the target payout our

non-run FFO, the share. quarter per Our for to anticipates $X.XX the $X.XX be fourth I rate between increases from recent partially mentioned, excluding quarter items the guidance offset by relates and of items, will first decrease the from $X.XX nonrecurring investments.

believe new continued see and we operators our will drive cost. progress in forward, we Going revenue increase ways as to lower occupancy, business find

can't say not to are improvements to and to we is certainty only long our withstand road that is growth. our While judicious last with the been may long LTC be. years, any the challenges well road beginning portfolio, are over XXXX see certain strategic What but few how remaining positioned the operating in we we of although has continue

to things turn over Now Pam. I'll

Pam Kessler

related was year's increase of in XXXX million $X.X received due grew Thanks, part rental from to Wendy. $X.X quarter rent portfolios. for rental revenue. higher revenue Total primarily fourth last by from in the revenue million The quarter transitioned to fourth in increase a

received the rent compared to of due lower from The temporary of to rent increase projects revenue property due the completed quarter to increases three reduction, annual $X.X financing in Additional with and by and from our quarter factors of partially million development contributing fourth Interest second offset to XXXX acquisition related acquisition XXXX in rent receivables Texas the increase XXXX Anthem's receipt properties escalations. quarter second by four included and in income skilled increased rent sales. was centers total third Florida. nursing

paydowns recorded mortgage lease As quarter and as mortgage quarter mainly in with million due $X.X income due the quarter on XXXX in quarter in loan option. due year's expense $X.X from reminder, second primarily our working notes. from XXXX the by purchase unsecured XXXX a increased origination from XXXX, properties last unsecured primarily the to purchased of back the fourth Interest fourth to and other loans entity $XXX,XXX of quarter, principal in from of income scheduled and fourth fourth because properties originations of last term loan senior the $XX by higher a accordance offset partially increased issuance a originations, in under of million by notes same Interest we interest in a GAAP, million, to rates, capital XXXX. offset loans by receivable an the senior Interest this first a we transaction the increased year's by entity financing partially leased the and to master mezzanine with origination quarter, and loan payoffs.

quarter to fourth number XXXX. in same the for originations a XXXX provision credit decreased the for $XXX,XXX, Our of losses greater by of and in due quarter mainly mortgage

upon to costs This a is by principal in increased X% origination, with primarily incentive to reserve down. paid due loss amortized quarter, pressures. fourth to we the the loan is equal reminder, and reserve As loan $XXX,XXX compared due estimate inflationary increases loan G&A a overall higher the as XXXX of record compensation balance.

our recorded by impairment in to G&A Florida analysis community provision expense. interest XX-unit for decrease living for community of losses, impairment quarter, losses charge million, quarter. assisted offset result in credit of $X.XX was revenue $X.X the the common and rental located a NAREIT available we primarily XXXX related million to recoverability higher fourth shareholders the by FFO in memory million a revenues increased net I $X.XX closed income diluted the in XXXX a Colorado. for the increased from care discussed, to $X.X as and Net loan due During a increase and fourth $X.X compared Fully quarter per with previously share higher partially fourth originations expense, located

$X.XX higher loan credit with and net for Excluding share FFO FFO, increase rental was $X.XX. The partially the revenue, expenses. items, G&A excluding per in compared in was offset from increase to decrease in nonrecurring nonrecurring the higher items, by interest revenues provision originations losses, and due

from to fourth prior quarter received receiving run expectations. HMG rent in rent quarter rental from million periods a should related in not in in relates line fourth to XXXX. we be XX anticipate $X $X We $X HMG our and of the million for during them. to We properties rent of the transitioned in received HMG with the rate the included million

with XXX,XXX For we quarter, in line all of the the also based market transition in received in expectations expect other fourth XXXX. $XXX,XXX to rents, portfolios receive and our with during rent

work During all the or year, assets to will these some set rents. either of sell negotiated or we

at paid receive in notes the payments scheduled rate we principal this giving XXXX XXXX to quarter, assistance. from the operator. $XXX,XXX unsecured whom We in the rent quarter have our regular X.XX%. a weighted under expect of fourth we for During provided At $X in same average XXXX to $XXX,XXX we senior in point, abatements operator this been in fourth million rent

credit. under down credit a which SOFR paid $XX.X ATM $XX in XX dividends, then average LIBOR provisions, Wendy X.XX%, we detail living credit program of our repaid will spread to adjustment line $XX.X under of million of be update also in We discussed our proceeds unsecured replacing credit million revolving at weighted credit as of more our its rate in our common of net shortly. investment pay and mentioned. net XXX,XXX shares our proceeds Also, million for basis Carolina, subsequently temporarily in assisted care line amended benchmark fund used We a those of memory We and North communities line common plus to XX points. recently and revolving with used sold our to stock agreement in

credit. only line is rate Our debt floating of our

looming maturities remains with and sheet secured balance no no solid Our debt debt.

reduction living Anthem which December $XX.X Oregon. mentioned were the XXX Clint million, the which for earlier, shortly. IRR included $XXX,XXX an operating community and fourth prepayment quarter, with affiliate we mezzanine related again I Subsequent additional XXXX, end we of anticipate received in received a temporary prepayment, details $XX.X the XXXX, to investments in XX, of including agreed loan We unit $X.X million totaling quarter, represents the from the exit $X.X to their XXXX.We rent full from a LTC active $XXX to will in existing independent of fee collecting an year. provide repayment million million in the a from rent in Anthem's receiving upon As Anthem million in of subsequent fourth amount rent of partner.

investment preferred first venture intent income anticipate We notice quarter in redemption, received also equity assisted the We XXX a receiving a in million with to a XXXX associated XX% our of in of the joint community $X.X representing to additional independent redeem living and unit Washington. develop million $XX IRR.

and million credit $XXX million million primarily subsequent our investments XXXX, XXXX our under Lastly, weighted available with December repaid borrowed million our on ATM. approximately line XX, gives Presently, $X in to total senior line approximately $XXX paydowns hand, have notes X.X%. on our of rate under of in us $XX we liquidity of and unsecured revolving million. million a principal also cash of for $XXX scheduled on of average unsecured credit, at $XXX we This million $XXX.X outstanding available

five X annualized We remain annualized to our a ratio fourth X.X have debt of of times next end with no EBITDA and fixed times, debt real for adjusted a years. credit of enterprise of significant over XX.X%. the long XXXX to maturities an the value estate solid adjusted At debt term the coverage metrics charge quarter,

related benefited payout non-run metrics discussed, FAD As our Anthem and to ratio, these the repayment rate received rent which HMG already periods. with items represent the from prior from

While to long short metrics back we times. expect our target below the X over up remains go term term, these

over to Now turn I'd like things Clint. to

Clint Malin

Thank you, Pam.

strengthening existing solidifying with relationships building discussed, we have to As with and operators with work. busy yet whom Wendy operators been we relationships portfolio, have our

year fourth management. the purchase operating North current The the a joint initial of lease with million lease to sale an operated a X.X% XX purchase of LTC living and increases properties cash of partner. memory in a a options. XX across of a the mentioned, that included to presented based venture master with beginning end to The the third two then to new communities assets floor investments buy being being to thereafter in through communities their leaseback are venture also that offering a our of transaction, up sourcing to strategy financing option a CPI, sheet financial first half with $XXX.X to X%. a of that since suit needs X% conservative into option. and the adaptive as receivable and being remaining listening three end the the subject We IRR lease we while the The joint Purchased a marketplace on subject of five Carolina. yield X%. transaction on $XXX.X a The the an best ceiling contains at to communities of are as for the lease the operators of of million year Pam year XXX under sixth escalates lease JV includes year care exit acquired products are quarter, units entered by growth renewal Subsequent affiliate through of assisted fit and year the beginning the year, and in the X.XX% and at properties lease balance purchase our

and $XXX,XXX, and to during included loan interesting expect by those has of a interest We we also the GAAP built mortgage to XX an memory we deep is not GAAP of and major $XX.X this operator and It respectively. of located community to utilized cash a from and carries a Carolina. IRR with relationship record interest North X.XX% a receivables The of $X.X In only $X.X investment which in regional cash of X%. interest with XXXX, income them. have respectively. term rate loan this income note care expect XXXX REIT loan consolidated million testament record to that unit financing, typically year is financing $XXX,XXX a The origination the million million secured from two

investment existing million Within independent we to expect the memory related community $XX days, next few a also living, care living and an LTC Georgia partner. to close with in assisted an

early be After will details We investment we transaction provide in last this will total investment, year's the has XXXX. additional eclipsed when closed. to closing

revolving down word XXXX at remainder properties master divestitures. rent. and In Brookdale addition on discussions in mentioned to the our the have we We proceeds million extended $XX in over the intend in sale touch year, recently remain we GAAP quick Accordingly, quarter, about a years, property million the briefly leases. proceeds from I last for line within XXth. years first per of to our we contractual lease approximately in A credit. to this lease the on sales. averaged rate $XX February ends our the on that active. for We $X plan, $XX to currently year two the a additional provided underlying approximately like quarter we anticipate expect the lease, of expiring In to million million investments, receive XX which I'd Last net recycling use an capital five of to are remains which period, reduction renewal pay of maturities.

after or our a Moving usual numbers, X.X is using performance These EBITDAR QX environment our assisted X, this month a indicator management X% fee as on portfolio trailing transitioned that time, the we ,was X.XX metrics believe portfolio. next challenging caveat EBITDARM living to XXXX. July reported created by the and for of at pandemic. with properties and the coverage XX currently given good times coverage, respectively times don't exclude future

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

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

occupancy coverage of XX, and times times and X.XX operators, was general are January our which share like same also received X.XX stimulus Excluding to I'd recent respectively. by trends, our are some store for funds portfolio. as XXXX,

XX, our our are this voluntary information occupancy store pay at stated, basis us nursing Private XX% XXXX. of at today operators store same private on previously total approximately and we to with XX% XX, includes June beds. our units approximately XXXX providing same a XX% give compared expedited so XX% XX% we skilled data January September XXXX As of at pay was XX, and the and

For our and in same as January was June occupancy XXXX. skilled XXXX, nursing portfolio, monthly September in XX% the average

reminder, our average occupancy approximately XX%. XXXX XX% skilled was our approximately and nursing pay As private in a was occupancy

I'll end remarks a discussion. with my pipeline brief

As XXXX and been we've very and far detailed remains XXXX productive have thus today, pipeline our robust.

strategy Currently, are plan creative end we year, XXXX. be higher to capital more banks lending This rates, evidenced that by strong at continuing structures is this through as are move judicious LTC's allocators. financing paying we As lending into a off making competitive. to XXXX,

all property We I are year including variety currently off reviewing vehicles we for in transaction and $XXX market totaling potential shortly to close types. the spanning transactions of approximately expect a that million, financing this discussed

Wendy I'll closing her Now give mic for remarks. the to back

Wendy Simpson

Thank you, and Pam Clint.

year and We assets are have solid we as our are challenges to have outside a up through longer investment control. of that stepped activity XXXX underperforming navigated substantially successfully our or divested our was no many core portfolio.

proven have to to our of work stakeholders. benefit all ability we to in XXXX, far our capital So put

year through will we strengthen continue and to our sheet and to further utilize solid growth As beyond, drive move prudently balance future portfolio. our the we

regional Importantly, for with Operator, audience. our we will ready for deepen we relationships we're can operators with the long grow continue to term. questions whom from the strong

Operator

[Operator with Instructions] the Markets. comes of KeyBanc line question Capital from Wurschmidt Our Austin first

Austin Wurschmidt

to bridge was providing guide, XQ. point? from what's this of guidance some XQ you FFO appreciate curious guys holding back around But the XQ us the the getting at from I detail I annual

Pam Kessler

that, able some permanent we're portfolio, discussed transition of There's to not to thing, would sale. on a that and would that on some any rent we're gave set And guidance I our yet. still get more being just remarks. in still like through that for evaluating that that until we're we clarity predicated certain we uncertainties working and be more those prepared in We we think be possible point the at

at the this see guidance year. resolved, So that. those later wwhich in But will don't annual uncertainties giving I don't have us visibility until we be are point, into hopefully

Austin Wurschmidt

was Brookdale provided It us and of you hear update during on sounds maybe Understood. a in made negotiation? portion choppy and you. just clarify could clarify the prepared bit the the progress and of on remarks Can maybe leases. Clint, what you still remind some you some little detail outcome? portion difficult But remains a and negotiations your to you like outstanding that It

Clint Malin

XXXX did So right our rent disclosed GAAP supplemental, the renew, X% XX% of now, as we of income lease that lease that leases in represents for Brookdale are we that XXXX represents a The for renewal. GAAP has it expiring.

continuously to discussions which $X provided them. we Brookdale. of put to to Last $X have We've additional an just million allowances we they million, committed So capital over improvement date. year, with work have

So to the Their portfolio. to capital have be see month open window into until of able to to they renewal, does exercise. continued improvement exercise they we're have remain end that the right encouraged Brookdale and the which unilateral

Wendy Simpson

was And operator. that was lease just that represented Clint that not that to, to X% the referring another clarify, was that was Austin, Brookdale, renewed, that

Austin Wurschmidt

And are the B you Plan some the with possible or portion I of Plan Brookdale that you… sort still to other options sort A, doesn't forward? what's optionality I that are extent a of don't things guess the move sort What -- mean, move of running forward

Clint Malin

asset have having you through. and up, lease to always backup come be protocol our able is of management renewals that in you're is plans This that standard work to process

management Brookdale's something absolutely, an asset process. portfolio, something as that's just we not So do to that's specific active

Austin Wurschmidt

end. on about a annual sounds remarks? pipeline like your you're on to this pro cover highlighted thinking forma one then investment prepared got kind funding you just sizable now bit ticked spoke the perspective, works in that, up to of little basis of It year from how about $XX of -- in that to a you've you but $XX And funding divestitures. curious leverage million just a portion And a million subsequent

Wendy Simpson

look As -- investments years, acquisitions target at has we've equity, XX% don't said to the fund past XX% I not decades. We our decade over that changed. know, And debt.

I our think we're question. ready next for

Operator

of next Sanabria with comes Our the from question BMO. Juan line

Juan Sanabria

I'm me XXXX. on curious Just quarter from you're received correct but transition rate run if wrong, cash the fourth similar sounded the And rents for portfolio. it a like expecting

be isn't just Just senior basically could you helpful. and any growth an isn't curious would is that, there? that on the why that there lifestyle If that portfolio? update us And give why

Wendy Simpson

the fourth we're I've rental that is transition do portion. them, we're guidance the and And going correct. permanent Yes, It a Austin to we provided before if haven't at what if remaining looking run portfolios is or to is quarter to mentioned as rent sell that set we're going rate. on going determining to we're

Juan Sanabria

you're se So flows go not cash rental per necessarily wouldn't your collecting performance that if income improves? and up

Wendy Simpson

correct it's rent market we reset. we are currently because those No, transition that collecting performance properties. on If not they're improves, would, based

would we rent. So collect

Clint Malin

on is rate XXXX, thing implemented. the or that a in rate and there of have expense one And increases was been not in also lot that growth obviously, -- elevated not

has if certain hopefully, which know we'll look the remarks. into going can of her rents selling assessments see evaluate we'll course spoke XXXX And XXXX, you if implementation it's increased. been increases, over better and prepared portfolio or that to make in there Wendy at of assets about the the be course Now But rent of during some 'XX. traction

Juan Sanabria

upside, too that but source be sounds a say… it of to So soon could like

Wendy Simpson

is correct. that Yes,

Juan Sanabria

investment pipeline. the on just then And

that $XXX tilted kind still is debt? Just curious type favoring, could color million of or equity and provide? towards bucket. of yield And you mainly asset Is the types what is it on any that

Clint Malin

equity some also involved and finance there Right now, is is in some it’s most well. structured -- there loans but as this, of

the in the being of we're combination diverse in it is type probably lower, off-market X.X% obviously, and It or I you're asset. all that. encouraged a But depends type, so diverse structured loans would of a set and the bit it property all little investments. is higher regarding AL plus depending on is on type skilled that. a it by on very being say but So finance, And transactions,

Juan Sanabria

the going on abatements, tenant there, the disposition forward, be $XXX,XXX any that's how is should that $XXX,XXX. that think around latest of would to still we What's And or about part bucket, that then helpful? just commentary the the receiving

Wendy Simpson

Currently, this bucket, and it's the the talked about months. over XX not operator part past we've disposition of

did guidance We that And bit a little this rent on give are evaluating it year. portfolio. of we for

still So that. we're through working

Operator

Steve Our with Valiquette next the Barclays. question comes from line of

Unidentified Analyst

that This is how Valiquette. for provide specifically rate Jacare] potential rest current additional able viewing of you year, be on environment? acquisitions Would color to the the given any for for [Amin Steve the are you

Clint Malin

think lending, that And the it, rate Well, our that for lending banks remarks, LTVs. as at understand higher environment, rates. they we are prepared the we as current mentioned are in in we lower

the provide make specific does of marketplace execution, better on, it financing, REIT with the certainty competitive we LTC property don't in So and more also because close. can’t put debt

it So execute -- environment able we for an acquisition. as do us to opportunity on think be to provides this

we So fortunate general we're but encouraged by think lead amount date going to the been approach XXXX, do to LTC. for investments in XXXX opportunities already but environment we what very disciplined that. to of we We've it's see we eclipsing be to to how to in be we're going have the able

Operator

Our next with comes Rich line of from SMBC. the question Anderson

Rich Anderson

if I XXXX can So here. see you with guidance help the let's

that's take you the you $X.XX. quarter annualize and So first it,

portfolio. you the dilution why potential upside sell there, and reason some off, and respect more you than maybe that. that there's it it I transition, but hold you redeploy downside there's but to seems and want from mentioned appreciate more You like Perhaps likely,

type look reasonable acquisition of there's you upside from is floor if probably way rate isn't pipeline quarter. number of missing And that a to a $XXX at or kind run from So of something? am your the it, I first think that, through

Wendy Simpson

I would reasonable. that's say

Richard Anderson

the you putting intend not to. at spot or [Multiple least on Second don't question is I here Speakers] I'm

Speakers] we're one other talking one. Next on question I'm sorry, [Multiple

If you go first?

Wendy Simpson

to to $X.XX coverage. $X.XX we engineer -- our dividend You a our dividend we month want say And XX% get and month Speakers]… reverse a is [Multiple

Richard Anderson

see. [Multiple What's I $X.XX among Speakers]

saying. number way after of can that from is kind kind right? you dividend, payout you kind targeted come the take Is the two you're of the you of -- XX% So directions and

Wendy Simpson

At right. this that's reality, point, in

Richard Anderson

joint option. inherited hear they into venture. that you on question Second negotiated I the Clint, they right said something about the were transaction? Did you or is purchase this were somehow

Clint Malin

were part the negotiated They transaction. as of

Richard Anderson

thought was the that I case.

So itself on. a maybe kind position bit from, of terms away to bringing guys, finds presented as as why LTCs negotiating you for a a better reasons lending up it I'm in you was of starts considering bank it I'm so to a position Do feel the like of in itself little and tool for competitive purchase the here wither is potentially the reason mentioned options or you still curious why strength coming from negotiating that perspective? you're

Clint Malin

at mean, and in our is has include obviously, since And sense deal this to but in is. in purchase have ones lending would this. circumstance individual want this evolve we the they case, and purchase it's And change we made transaction, to I to continued year obviously But options for The with out negotiated then, preference environment to what that did and operator. the each look XXXX. achieve options. specific be not really and operating what at looking of last the working partners deal specific

Our build beyond relationships, them this. lead and grow additional investments to into intent is these

in those think provide future investments, So solid flexibility operators. for how if gets we're so we growth these approaching can for we business

Richard Anderson

with or them the and that of venture just you the in in beyond maybe Carolina? more here, anything joint either terms the is that see with this upside North operator a of there mortgage state relationship Is

Clint Malin

we more potential of the business. do I see mean

concentration, individual growing and increasing also of operator. we're any we're as that cognizant Although with

additional opportunity But manage do have more. think obviously we think we'll have investments, I large that. do we But the yes, So I that not to to this the as investment. ability do as

Operator

of RBC. line Our next from question the with Carroll comes Michael

Michael Carroll

few have a clarifications. I just

So assume the nursing on it same facility that lease contractual was the fair to is renewal? renewed. cash Is skilled that the that rent

Wendy Simpson

X.X% generally [Multiple it I a contractual about is stated the which increase whatever was increase Speakers] X.X%. increase, was, think it was

Michael Carroll

straight over rent year you And is five next does the the a compared that to lease, or out are lining prior now have unchanged? renewal change, it years GAAP given you the or that on five

Wendy Simpson

Yes, they are straight lined.

going five years. It's increase. would it for So reset to

So yes, that's math. the

Michael Carroll

the And a we upside we've is kind there for from getting related closer been current I I setting are to potential rate then to rent rental or from mean same this Anthem. of contractual a know still new them level? on them.

Clint Malin

We at point where at XXXX our ahead would set objective rents, as see and some where at, would is But well as Anthem that. get parties' that, contractual still will into of goes, actual determined, do be When we both like contractual a we'll to be that amount. parts is but as we're I'm able to to on to go point. that sure that it to rental but goal Anthem do this

Michael Carroll

more stabilized of that hit kind of environment? as like a of XXXX you a event Is more of type

Clint Malin

point, I'd realistically, mean yes. probably 'XX… At I early this say probably

Michael Carroll

I mean, that there is off of their And performance? perform than HMG, that is million then related paid, be to if expect you upside or to I mean, $X that potential they current expect? that better you number to expect they based

Clint Malin

as do with but both this working where HMG what And with given it that resets. we is lease But a have reset reset. term right structure to ability permanently. have we and have to us forward be, that shorter could were looking this market on based a the number duration do the into to budgets, we goal lease We and also, rents comfortable market is their it contractually this between based rents HMG a longer now set is based roll and a because a

longer time. that, to the increase set goal there a based we permanent if term rent in active our active is something that with in over is be really, into or But that to that's stay accomplish structure, HMG could this we discussions current market So or put lease will rents. and a possibility

Michael Carroll

operations able to given how take stabilize kind put done fully that assets those processes of over? in of And that taken has of turn long been it How has and HMG does kind they've since results? their kind to for the overall of around

Clint Malin

definitely mean, it's I longer. taken

improvements, working that a think I But of on when initially work far capital staffing, we lot mean, they've both parties from leadership. as I doing expected done transitioned. as

XX this to is be the at put mark be October, really in coming their this the we'll which runway near giving able them place. to So point, month processes

able improve this is So rightsize able at with and able right at hospitals still ends legislature I providers to discussed hopefully, Texas us be that's just the have this we they've with also managed care platform make to to May. lot now, And and improvements. I the think then end is to operations the to of to got mid into. be continue rate -- point, to working session that be being on A increase of the probably relationships as well grow in the think capital in expenses. -- improvements, And

And that a end see happen and won't the rate that said, if until know in certain of we'll the Texas, as or ends hopeful is comes will to session we legislative about, for have so increase mid-May May. where everyone increase but rate till

Wendy Simpson

that's our not included And in projections.

Clint Malin

Correct.

Wendy Simpson

would That upside. be an

Operator

of next Okusanya Our with Credit the comes line question Tayo from Suisse.

Tayo Okusanya

Kind be to mentioned of right Texas. guys fortunate on because just now, you call the

in this for would are exposure if consider curious, if this the an And insight? of you are any state? are there second to that that of other shaping that all, kind critical success you up operators point, how the any at in Just Medicaid again, rates have year, there's absolutely things increase of states the

Clint Malin

is skilled Michigan. as states far mean, we -- I -- Well, have as a large that nursing and have LTC concentration Texas states of for

a is Texas. rebasing just process. we Michigan through So going about talked

there will of in retroactive for in expecting Michigan, as operator October a the rate that increase reports. be be in X% about probably would the rebasing they're well, given increase cost So rates our positive

starting [Multiple rate in the big had point actually buildings renewed which a is in lease of nursing benefit that two the and year. Florida, a year. was there's place took So Florida, October this just to that which last we Michigan skilled in Speakers] plus increase large

So that already occurred.

Tayo Okusanya

your of And about that specifically get then curious about while their things Omega kind call inflected went point. is feeling When though, like near large Just of are of industry? viewpoint side? again, of I more it and have on of nursing side, with evolve on what Difficulty]. ultimately kind most Is [pain] Do in Is of generally, [Technical you great term skilled at you tenants? kind the of you the overall portfolio [indiscernible] [indiscernible] for with things industry just how at the mean, your before better? case how skilled your top industry of you your the the feel kind shape think think this nursing things

Clint Malin

Well, shorter Right now, I to. census more think it been it nursing has challenged skilled referring depends term portion and has on been what care stays. in long you're than of

PDPM, nursing, see higher beneficial operators acuity especially the are that's through And in think so a reaching to I lot where been implementation with on higher now up going. the I pandemic, industry think taking you the acuity of of that skilled patients, into is

that's we been Resorts Medical on area and Pruitt on care as reflective the more Operators term programs. an being has Ignite that's that waiver hospitals and are well model take side as of investments think Medicaid assisted in higher with or challenged that able has with settings. long care to other Florida. traction. last acuity The living So made in both patients and home higher year, focusing that are acuity We

Operator

is follow-up question from question BMO. next Juan Our with a Sanabria

Juan Sanabria

aware is Is couple we should to impairment story there? a questions. Florida the Just the of, follow-up rent, paying or of story what's any that be tenant there back

Clint Malin

That And the was a that was last building it's a that of did from one-off a that year. others portfolio building transition portfolio. in part we

result So and asset really of buyers was just for identifying the that. that impairment a

that. So nothing other than

Juan Sanabria

paying, those And that $XX the as then fourth rent of to dispo the $XX million what Were that was opportunity? relates quarter or rent was million mentioned you it in booked dispositions.

Wendy Simpson

very you mind Would to question? the hard hear. was repeating it Juan,

Juan Sanabria

your quarter… The what of I the of in booked expect What was you kind to remarks. should yield million prepared we relative think, fourth in dispositions $XX referenced,

Wendy Simpson

Do you sales. Is a -- mean be GAAP we that decrease said question? would your there million to the rent due in $X

Juan Sanabria

quarter I guess 'XX year or annualized? a that number full is fourth

Wendy Simpson

was full a 'XX number. That

that So out model. just pull of your

Juan Sanabria

gave for the plus just do over this Why last think improved But SNFs really housing. both months, numbers January for on six the the those one, And the then little haven't the front, is? last you you what harder. maybe seniors issue and one's occupancy a

Wendy Simpson

And been of you pockets a increases short setbacks. we There's not varied what broad and reasons view term of the been across Well, term, brush, occupancy coming short pandemic the as linear. like board. anything, have paint can't out are the

know always some reflected. undergoing that's issues, we're communities, and You've seasonality. we staffing all and changes There's there's a got leadership at seasonality

in you see beginning And and so changes the in quarter, first fourth in particular, occupancy dips quarter housing, to make the senior of holidays. are the as families reluctant during

the goes out the to So of seasonality, first upside. typically your it coming quarter,

again XXX recovery, XXX that have you to for pre-pandemic we -- hoping a be needed occupancy So will But think case still these. points as basis back the we're look I levels. or that, for

we think road. looking a in we we're to And term short exit be demographics a market recoverable, assets. market to see reason should or product upward. portfolio. is to has the are to it's think these that some continue it's look our supporting it the with those we to think or would shot if straight investments. -- then going area, I And that be invested expect I to turned those at But we'll don't everything, for be those reasons the think bumpy the for continue we stay that not

Clint Malin

strong have And one -- again, operators, state. we've has lagging. that for Juan markets, a generation Lead it some from part. some bit been by by other In have the market, been heard little conversions thing really been most defers

positive board generation understanding in calls other across lead what has some the but the really in that's it's strong. that been so heard sales this I've a there's And And conversions seems been is well markets earnings some strong. be as very in why to lag generation in markets, certain for lead quarter in

to operators on are focus So closing. conversion going just into that

Operator

waiting at Thank questions question. are further Instructions]. you [Operator this for time your There no

Wendy Simpson

joining first everyone, to quarter to us. And very look you we shortly great you, the a forward as to Thank talking Bye-bye. day. Have closing. for close is

Operator

today's Analyst Call. you This Investor Thank and for your Incorported LTC Properties participation. concludes

disconnect now may your lines. You

LTC Properties (LTC) 17 Feb 232022 Q4 Earnings call transcript