LTC - Earnings call transcript Q3 2024

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

Operator

Good day, ladies and gentlemen, and welcome to the LTC Properties, Inc.

Third Quarter 2024 Earnings Conference Call. My name is Ali, and I will be your operator for today's call. [Operator Instructions]

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, 2023. LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. is event this note, being recorded. Please now Wendy Simpson. would like to to over conference the turn I Ma'am, begin. you may

Wendy L. Simpson

Thank you, operator, Third Quarter and welcome, everyone Call. to Conference LTC's XXXX

On Chief Investment Kessler, are Officer; me Clint Officer. the Chief and and and Financial Pam Co-President Malin, call with Co-President today

and transitions XXXX. Year-to-date, unrecorded quarter LTC, portfolio we and related prior $X.X in fourth previously have from we more positive and about former have to optimistic third paydowns. related than to date collected are The been years. And $XX the revenue operators payoffs have to in quarter to we year and received receivable loan million million

we program. Additionally, from ATM million $XX of net received nearly our equity sales under proceeds

capitalize on investment thinking result, ahead with growth actively When we and new opportunities substantially about RIDEA. a are full board, balance we have our to support sheet evaluating of the our opportunities. As LTC delevered better positioning

as to Clint analyzing more reviewing are as the strategic structure. this well on needed approaches infrastructure will later. execute We several detail currently provide successfully

has Before to ensure taken recognize the impacted their to I met the are expect. high and care patients level who who continue throughout to and recent receive still the stories the they I We've need is of in by located employees want regions over, our operators efforts LTC been hurricanes. They by challenge heroic and the residents of call turn support areas extends everyone and to and and heard affected. the courage great its sympathies

to hand things over Now Pam. . I'll

Pamela Shelley-Kessler

same XXXX, otherwise numbers Thank with quarter today XXXX are in you, discuss for unless I the third all of that note the compared noted. Wendy. Please period

with operators release, and $X.XX and primarily FFO transitions available XX-Q. Net shareholders income in unconsolidated by to share deleveraging our former onetime our related earnings million, was about ventures. Fully years, You expense and can diluted joint from last in per a Form details find year. financial income $X.XX rent to interest from $X.X decline to compared supplemental increased income activities resulting common increases press portfolio due prior results additional from in our

was $X.XX. items, nonrecurring FFO per share Excluding $X.XX versus

of skilled which which last recap $XXX,XXX Louisiana the years, and lease term, would a million third early paid per to loan, committed quarter's of $XX.X mortgage increase loan a for shares have received a credit should notes a related income working remainder in For line program gain our the feature $XX.X common unsecured activity, scheduled on of discussed X,XXX,XXX on mortgage some repaid XXXX. Recorded under $XX.X received as the Texas to begin in million accordion portfolio of our million proceeds former in of net assisted in transitions was on to to fund total of our sold million call, credit share. a million million note, related ATM million recorded agreement million operators revolving $X.X in an payoff from capital line through principal in living $XX.X prior to our expired senior $XX.X our dividends sale paydowns on as related January rent in under of quarter a $XX paydown million, center in and $X.XX $X.X by contractual we well $XX.X under and of exercised $XX.X revolving of $XX.X unsecured credit of million, nursing the monthly a million XXXX, the by secured community which

$X.X in we repaid payoff million $XX.X for $XX.X Georgia, $X.X the from sale quarter, Subsequent XXX,XXX mortgage to for million credit. sold our sold proceeds million, our fourth secured a under the line received ATM quarter, anticipate property Colorado the shares in a of under we million recording the and by $X.X revolving program a a on approximately gain loan in which in of million net of senior housing of end for community closed

liquidity to line $XXX had available total $X.X cash our of XX, Subsequent million are September of and from on the $XXX quarter. $X.X our prior million ATM, was we our of credit on available in approximately the million, hand, XX% and which renewing million Accordingly, under we up process expanding.

as sheet arise. take new us Our to balance of conservative allows they management advantage investment opportunities

down debt the of result for second from X.Xx pro balance quarter. from ratio X.Xx annualized forma is our real deleveraging up estate charge a adjusted As EBITDA forma pro to our and the for X.Xx second our coverage quarter, to is sheet, for to adjusted annualized fixed successfully X.Xx

currently fourth we of to recovery payoff guidance losses $XXX,XXX quarter for share. redeploy nonrecurring item $X.XX have fourth the and to result capital. The provision approximately the payoffs fourth The quarter quarter. to yet Our $X.XX the mortgage relates that as between is quarter is for from known for decrease credit per the on a mortgage receivable item FFO, third the nonrecurring loan of loan in excluding $X.XX due

Our full nonrecurring Nonrecurring in credit FFO, remains include recovery detailed our release as provision earnings for full per items to as $X.XX the date items for loss the share. the items, well as year year just nonrecurring for guidance excluding I $X.XX recognized mentioned. to

issuances. activity, sales, investment additional no assumes financing equity asset guidance Our or

to Clint call Now over portfolio for I'll review. our turn the

Clint B. Malin

Pam. Thank you,

few more effective. regarding hurricanes of a areas ownership our portfolio a say given in start words to update, like buildings brief I the several the I'd Before

First, there buildings. was our material no to damage

work remains up until their real fortunate very building in caregivers that valiantly one destroyed. damaged is our were even made own restored. The is being and supply the story only municipal as many unoccupied are water sacrifices by homes portfolio showed the for We who

own our pursuing a the as actively With ALG their joint a receivable. for provided through exercise purchase XX options. property ALG. the start a expect financing we their October is accounted the engaged venture with in and assisted portfolio financing manner, living They deferrals we cooperation, Moving for portfolio. contractual timely I'll for of our on rent paid in November. Net to same obligation we to

with of with ALG As us and cross a reminder, cross default providing collateralized, security. now investments are added all our

up Regarding with in XX% the Healthcare, Prestige in loan XXXX. this modified XX% of October improved we to year, in XXXX occupancy September

fourth approximately $X flow the be we be pay to cash Prestige interest the deposit payments, security Additionally, which deposit, in million amount. quarter, above in hold. Beginning pay the XX% retroactive Medicaid be January in added Prestige's to our we to used excess to added will will will expect XXXX, receive which security contractual current

XXXX. Our all we to projections this interest contractual receive indicate in continue and year due will

Regarding our revenue of lease-up properties to operators, X continue XX XXXX across includes $X.X million. we which portfolio, expect approximately

earnings and with are reviewing We budgets we on call. additional provide XXXX operators, our guidance will our actively next

on pipeline supplemental. After the recent our of coverage mentioned, all our accretive deleveraging we place Pam elements occupancy have metrics Page You the XX to and portfolio transactions. a with of find build in significant can now

selected we could act investment the structure growth covering analyzing and Wendy of this of for second year. addition approximate cooperative RIDEA conversion million, of between is a by path seniors range triple as which million in $XXX investments. This converted be mentioned, initial are quarter net the a As implementing the this structure the an leases gross believe through $XXX structure. housing will catalyst XXXX. of next We We actively believe to current quickest represents

turn things I'll for closing back Now her to remarks. Wendy

Wendy L. Simpson

LTC. quarter right us feel to for Thank We bright I talking have February ensure fourth progress to capital with the future about Pam you team, to a you joining questions. to look made we're Operator, to again for ready today. in forward our results. take right Clint. growth our believe and access and and and the the outlook needed we've good really you, the strategy Thank we

Operator

[Operator Instructions]

question first Wurschmidt Our KeyBanc is from Markets. coming Capital Austin with

Austin Wurschmidt

Great.

you to RIDEA, guess what into the now of overhead So than million would necessary of into can sort additional from you accretive million I business? would And upfront perspective. detail that any conversions when investments that you to think some platform the you've $XXX more additional of to are investment the an share you door opened the consideration that think be jump take around immediately segment $XXX-or-so

Clint B. Malin

a and manage going of into Austin, RIDEA my to net through of her actively analysis, a we're those management to we're I asset in that's mean Wendy properties our into way in as going remarks tying in the prepared in comments, leases involved conversion portfolio, triple that currently. because mentioned

work a add manage at that to just what to converting. by to we that effectively to outside into new doing analyzing able gives need we be and But resources platform. looking us are of the So way investments

information we're both needed side and the provide line this, of more at now operators regard in our what's So that would going through implementation -- from capital like. on looking operators next and call. And to it, we'll bottom right see what as at look increases quarterly by rate the any looking well as accretion on with budgets to

that about quarterly forward providing next look to information we call. while So on our more

Austin Wurschmidt

around rates opportunities, you conversion had the you I an conversations That And RIDEA? from will just growth in external beyond that you helpful. be share competitive And you opportunities seeing perspective what at be that cap business? you've can guess are think can

Clint B. Malin

where we us Yes, and with maybe had to in able I operators, think that's people appealing in on been driving to a some find for look the able rightsized companies see basis. couple are do growing over different past We've capital grow. about be operating years. And talk of seeing they conversations in catalyst starting be us opportunities, to are a this. And forward partner interested opportunity we on to at relationship, it the RIDEA this to

And listening we opportunity it's think so to And over do in there's for frame. a space. that us of time that been lot operators

Austin Wurschmidt

scope within but still triple kind size So one and context and business last early me, holistically the of business? just you of how know -- for I piece your investment this of of legacy days about net the think it's do

Pamela Shelley-Kessler

Pam. Austin, it's

of pencil be I significant be especially the participate -- to It's upside. very and would deals our think could in trajectory the think landscape side and it if business. there you're of grow difficult out RIDEA, to of triple-net make wanting to it on senior deal housing I the part given a the

business. probably in is if it. and look space. competition will can't or peers I a be an our on put grow amount dollar which of significant at -- percent really a it our equity, private to our But amount you at So part certainly

platform, don't just investment excluding that's off you right are And from of you a we've have the what opportunity yourself If this experienced. lot bat.

Operator

Juan Sanabria question with next from is Our BMO. coming

Unknown Analyst

sitting Robin Juan. This in for is Handel

where why in to they to opportunities. the wanted Could are you tenants are on on interested conversions today? up maybe Just follow elaborate RIDEA

Pamela Shelley-Kessler

doesn't It any have long-term net triple a that be tenant lease. would

talked transition Clint about subset, that about of $XXX we've the and million. it's bucket prepared of remarks of his talked sizing in $XXX the kind have, that that and to we So million

Clint B. Malin

our it And that any don't have other set fixed maturity. leases a of rents shorter whether be or portfolio duration in could have

Unknown Analyst

we in there the for be thinking million to expected quarter fourth repayments, the and third is remainder $XX Okay. should And for And on of date, 'XX? loan else the repayments working about including how 'XX? capital anything

Pamela Shelley-Kessler

No, fourth talked the there's were those expecting all beginning are repayments and quarter. the year, third that being quarter in we -- it of we about or

of due For paid great $XX nothing significance, us. off And XXXX, about be currently, to that to scheduled to come we million matures. it expect as there's

Clint B. Malin

only towards The the be other purchase of to the options. financing that ALG the That most of some that item those their exercise other And year. item maturities. would end secure add of be on able the are backdated is would to into if would

Unknown Analyst

anything Got what's this on of is front to acquisition is there maybe proceeds can here? the the the expect we near term? And on in RIDEA? it. And use the ATM, Or related

Pamela Shelley-Kessler

the to that don't of investment we Well, so to with at talked third Right do. took we sit where and we could X.Xx, and create enterprise deck care the I liquidity year, about for now, opportunities. value all any we leverage and have that deleveraging think debt XX% we quarter clear more deleveraging basically in

Operator

coming Rich Our is Anderson from Wedbush. next question with

Richard Anderson

or conversion $XXX year. that So portfolio? $XXX is forward $XXX next does it you structures types to conversions. of much it? I'm rents understand within look types going let's of In might sort just some existing of of to the say, sort how mentioned million other $XXX million be on existing that again, the starting from words, How million like no RIDEA other I the what duration those and sweet -- rollout, your short lease then other maturities of those is spot all And your potential of portfolio? of arrangements profile triple-net it? potentially it assets of much do in represent the Or set million growth to converting internally is is or conversion in wondering and that,

Clint B. Malin

be I some opportunities growth an beyond will think additional story opposed more conversions internally. probably this, to we'd There more possibly. external as look just But of

be would be could it So There rollout. to really this would follow, but external growth initial an be Rich. some the story,

Richard Anderson

And single that million a collection in $XXX is of terms that a operator? million, Or Okay. operators? $XXX that of to is

Clint B. Malin

operators. would It multiple be

Richard Anderson

those it them, in perhaps some then out RIDEA operator? that on deploy of be partner portfolio operator Multiple terms would an in well them that... and and would in RIDEA to then separate external one of your where try with would with today a you that the growth that go operators. as from you And is is opportunities and Or or opportunities field finding bring partner, not as deploy

Clint B. Malin

it would wouldn't much be want thing They single One just operator. is concentration. think would incremental. concentration a would incremental. with we We too to be have about

So of will. that you sort be a would if governor,

Pamela Shelley-Kessler

both, say most combination a Yes, would of I likely.

Richard Anderson

right? of that the was So on ALG after did year. that was and deferrals Okay. the for but current offered. million net that $X it's you November, Pam, this you maybe Is is deferrals of -- October or say it

Clint B. Malin

October And November. them expect That pay to we paid is correct. and they

Richard Anderson

not anything they deferrals Is is true? that you back yet. have that about the paying Or be... that And talking of started any starting like to or

Clint B. Malin

working to the the the of option. properties the They're purchase exercise through refinancing

So have cross we to And a would be equation, all of across and provisions. Rich. that that part collateralization

repayment So the provided. we of more deferred rent adds in specifically the security that

Richard Anderson

Yes.

and of the Okay. for bit Last -- about one other options each recently out there we of purchase Brookdale. A we lot why that's saw you for a me. usage is this And when sense guys. and makes kind it talked and

But too of move Or where units want want potentially being that that any don't purchase perhaps that do clearly to than see push many you Brookdale same chance where them. I executed get into it forward? their do of stating options the want at lumpy not they rent more think because it's you own to there exercisable. situation a time? to could you Is XXXX, becomes is

Pamela Shelley-Kessler

laddered Yes. purchase option those We've carefully dates.

forward. see for don't us a And bringing catalyst I so that

Operator

Our next question is from Carroll Michael coming with RBC.

Michael Carroll

wanted investments I kind looking think previously, Clint, guess, might you you're I were to last touch to platform somebody to of I on RIDEA. on the of that that bring know to or Pam referred want that we kind you at hire you be the structure? about? talked, highlighting is that these we the results think operating And these able mean, investments operators first that is the that to there investment to need better first. I operating track be to should of are you other do financial tech could potentially and under I

Clint B. Malin

Well, assets, to actively that conversions, through given the are visibility right already on be us with I our the think to gives familiarity work able we that as now.

and evaluating it's we over as platform would actively add resources. to we So the probably something that that expand look we're time

Michael Carroll

can it and hiring of what about like operator your that kind out operating Is talk it operators to platform track building just adding is you an resources is Clint, And a financial somebody results? background? Or means?

Clint B. Malin

A accounting side, bit the little mean, everything. the yes. of asset management from I side to

Michael Carroll

is these about kind as up investments? think we make year ramping Or to of tell? kind should And too G&A it higher you of next early

Clint B. Malin

that to into cooperative It's story cooperative into a look manage then -- visibility Again, the situations scale more and this point. think able to external have and that these RIDEA. we're an assets, to early to tell we we And lot we more converting resources. at on already turn growth given we without as these would in too

Wendy L. Simpson

add "competitors" all I blind. We're who a connections as them. and what of Michael, we have to don't start with. on to significant telling really wouldn't a of to out to the it's expect build I be mean out into in a very out using systems might going almost this been say But industry, focus we're platform think to smaller we're in to reached every one not bit spent millions I to shout it's what helping us with because investment you And little going need, going to being We've dollars us need. our I've begin the on. what out. this see to is helpful of Wendy. we our got RIDEA. have They've we

Michael Carroll

like And the investments, to me, there structure on near-term makes investments projects maintenance kind of Appreciate I drive one should they like to but could portfolio? Great. opportunities? now for where operator think these about make Windy. in beyond have I above it growth the or those is LTC into done any then triple anything net sense in putting to just Okay. that, for those deferred what there is and near-term conversions, unable that that guess, last embedded the guess, we renovation Is those make

Clint B. Malin

But -- dollars. I there's that wouldn't We not major specifically large, be is needed... capital than wouldn't and asset see where be would capital one maybe any significant revenue-enhancing by couple other a dollars there say would

Wendy L. Simpson

portfolios capital we in, the Transition when transition we put operators.

-- it's been So of added. it's most already already

Operator

Our next from question coming Asana Bank. with Deutsche is Amit

Unknown Analyst

I are This was with a is they obligations rough if that Tayo. around Prestige. just cash? expectation seeing meeting have and your you if on improvements to return wondering their just tire rental Sam I around when a question guys have for you contractual operator. And with any

Clint B. Malin

we're Well, remarks. XX% I that which the very occupancy a by September, prepared growth, they mentioned were encouraged ago. in In compared time the year frame to

into as cash talked, flow a XXXX. of made the into they've first retroactive this putting arrangement well Medicaid back And starting their entered fall on them of as that. as Prestige with Escrow participating in through we lot LTC in with So us in progress funds we excess

to We Prestige occupancy runway a improve have back almost margins. given X.X-year build X, be able really to and

very growth think they think a progress. that, making are encouraging. see that I is lot and of I in occupancy to So We're happy

Unknown Analyst

but this, improved around growth And sense. your the what's is given hope the external leverage guess me miss and last didn't liquidity? I one I I for Makes Right. -- outlook

Clint B. Malin

looking now. opportunities actively We at are

regarding next investments. more be and our able to details call, we'll hopefully, provide pipeline So

Operator

you. Thank

I the on line, further the As over remarks. closing Wendy to we like no to have call would questions for back Simpson hand any

Wendy L. Simpson

we're for I'm for Thank RIDEA big a the followed how do, us in structure. on those new And and converts in have past. joining they been I RIDEA, you, us of excited time. everyone, call a today, and know what the time, about who go you you anti have long the very you convert, know

and opportunities. quarter. to the excited you very our we'll you, I'm Thank fourth after about So talk

Operator

participation. does for and may lines thank you your you. time, conclude Thank gentlemen, disconnect today's this your we conference, at this Ladies and and you

LTC Properties (LTC) 29 Oct 242024 Q3 Earnings call transcript