LTC PROPERTIES, INC. NYSE Real Estate Investor Access Day
August 2022
FORWARD LOOKING STATEMENTS
This supplemental information contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. You can identify some of the forward-looking statements by their use of forward-looking words, such as ''believes,'' ''expects,'' ''may,'' ''will,'' ''should,'' ''seeks,'' ''approximately,'' ''intends,'' ''plans,'' ''estimates'' or ''anticipates,'' or the negative of those words or similar words. Forward- looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect our future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to, the status of the economy, the status of capital markets (including prevailing interest rates), and our access to capital; the income and returns available from investments in health care related real estate, the ability of our borrowers and lessees to meet their obligations to us, our reliance on a few major operators; competition faced by our borrowers and lessees within the health care industry, regulation of the health care industry by federal, state and local governments, changes in Medicare and Medicaid reimbursement amounts (including due to federal and state budget constraints), compliance with and changes to regulations and payment policies within the health care industry, debt that we may incur and changes in financing terms, our ability to continue to qualify as a real estate investment trust, the relative illiquidity of our real estate investments, potential limitations on our remedies when mortgage loans default, and risks and liabilities in connection with properties owned through limited liability companies and partnerships. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward- looking statements, please see the discussion under ''Risk Factors'' and other information contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in our publicly available filings with the Securities and Exchange Commission. We do not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise.
TABLE OF CONTENTS
COMPANY
Company Overview | 3 |
INVESTMENTS
Real Estate Activities | |
Investments and Capital Recycling | 4 |
Acquisitions, Mortgage & Mezzanine Loan Originations | 5 |
Joint Ventures | 6 |
Lease-Up and Renovations & Expansions | 7 |
PORTFOLIO
Overview | 8-9 |
Maturity | 10 |
Diversification | |
Operators | 11-12 |
Geography, MSA, Age of Portfolio | 13-14 |
Real Estate Investments Metrics | 15 |
Update | 16 |
FINANCIAL
Enterprise Value | 17 |
Debt Metrics | 18 |
Debt Maturity | 19 |
Financial Data Summary, Dividends & Total Return | 20-22 |
Income Statement Data | 23 |
Consolidated Balance Sheets | 24 |
Health Care Trends & Investment Strategy | 25-26 |
Investment Highlights & Leadership | 27-28 |
SEC Reg G Compliance | 29-32 |
INVESTOR PRESENTATION | AUGUST 2022 | 2 |
COMPANY OVERVIEW
LTC (NYSE: LTC) is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale‐leasebacks, mortgage financing, joint‐ventures and structured finance solutions including preferred equity and mezzanine lending.
ATTRACTIVE YIELD & MONTHLY DIVIDEND
BALANCE SHEET
PROFORMA LIQUIDITY AT
JUNE 30, 2022
•Dividend Yield: 5.6% as of July 28, 2022 (Stock price $40.98)
•Monthly dividend is currently $0.19 per month ($2.28 on an annualized basis) •FAD Payout ratio of 87.71% in 2Q 2022
•Investment grade NAIC 2C rating (insurance industry's rating agency for debt investments) •Enterprise Value: $2.4 billion at June 30, 2022 using July 28, 2022 closing stock price •Debt to Enterprise Value: 30.7% at June 30, 2022 using July 28, 2022 closing stock price •Debt to Annualized Adjusted EBITDAre: 5.7x
•$6.4M in cash and cash equivalents
•$323.5M available for borrowing under our Amended Unsecured Revolving Line of Credit @ 115 bps over LIBOR and a facility fee of 20 bps, matures in 2025
•$160.3M available under our "At‐The‐Market" offering program •Effective Shelf Registration Statement
INVESTOR PRESENTATION | AUGUST 2022 | 3 |
REAL ESTATE ACTIVITIES - INVESTMENTS AND CAPITAL RECYCLING SINCE 2010
(FROM JANUARY 1, 2010 THROUGH JUNE 30, 2022)
Total Investments (1)Total Sales (2)Total Gains$ 1.7 | $ 392.6 | $ 177.4 |
Billion | Million | Million |
MILLION
$450 | ||
$400 | ||
$350 | ||
$300 | ||
$250 | ||
$200 | ||
$150 | ||
$100 | ||
$50 | ||
$0 | ||
2010 | 2011 | 2012 |
- Represents total investments.
- Reflects total sales price.
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | YTD |
2022 | |||||||||
Investments | Sales |
INVESTOR PRESENTATION | AUGUST 2022 | 4 |
REAL ESTATE ACTIVITIES - ACQUISITIONS, MORTGAGE & MEZZANINE LOAN ORIGINATIONS
(DOLLAR AMOUNTS IN THOUSANDS)
ACQUISITIONS
CO NTRACT UAL | ||||||||||||||||
# OF | PROPERTY | # OF | DATE OF | INITIAL | PURCHASE | |||||||||||
DATE | PROPERTIES | TYPE | BEDS | LOCATION | OPERATOR | CONSTRUCTION | CASH YIELD | PRICE | ||||||||
2022 4/1 | 4 | SNF | 339 beds | Various cities in TX | Ignite Medical Resorts | 2017-2018 | 8.00% | $ 51,534 (1) |
- The lease term is 10 years, with two 5-year renewal options, and contains a purchase option beginning in the sixth lease year through the end of the seventh lease year. We expect to receive rent of approximately $1,000 in each of 3Q22 and 4Q22 and approximately $4,300 during 2023. Rent will increase annually beginning on the third anniversary of the lease by 2.0% to 4.0% based on the change in the Medicare Market Basket Rate. Additionally, we provided a 10-year working capital loan for up to $2,000, of which $1,867 has been funded, at 8.00% for first year increasing to 8.25% for the second year then increasing annually with the lease rate.
MORTGAGE LOANS
CONTRACTUAL | INITIAL | ||||||||||||||||||||||||
# OF | PROPERTY | # BEDS/ | MATURITY | INITIAL | INITIAL | ADDITIONAL | |||||||||||||||||||
DATE | PROPERTIES | TYPE | UNITS | LOCATION | OPERATOR | DATE | RATE | ORIGINATION | INVESTMENT | COMMITMENT | |||||||||||||||
2021 | 9/30 | - (1) | OTH | N/A | St Peters, MO | N/A(1) | Oct-2022 | 7.50% | $ | 1,780 | $ | 1,780 | $ | - | |||||||||||
10/1 | 1 | SNF | 189 beds | Lafayette, LA | Crossroads Area Management | Oct-2024 | 7.50% | 27,347 | 27,047 | 300 | (2) | ||||||||||||||
10/5 | 1 | ALF/MC | 68 units | Ocala, FL | Pointe Group Care | Sep-2025 | 7.75% | 16,707 | 12,530 | 4,177 | (3) | ||||||||||||||
12/1 | 13 | ALF/MC/ILF | 523 units | Various cities in NC & SC | ALG Senior Living | Dec-2025 | 7.25% | 59,250 | 52,502 | 6,748 | (4) | ||||||||||||||
15 | 189 beds/591 units | $ | 105,084 | $ | 93,859 | $ | 11,225 | ||||||||||||||||||
2022 | 5/5 | 4 | ALF | 217 units | Various cities in NC | ALG Senior Living | Jun-2026 | 7.25% | $ | 35,074 | $ | 33,842 | $ | 1,232 | (5) | ||||||||||
5/5 | - (6) | OTH | N/A | Mills River, NC | ALG Senior Living | Jun-2026 | 7.25% | 826 | 826 | - | |||||||||||||||
4 | 217 units | $ | 35,900 | $ | 34,668 | $ | 1,232 | ||||||||||||||||||
- We entered into a one-year loan agreement secured by a parcel of land for a future development of a post-acute skilled nursing center to be operated by Ignite Medical Resorts.
- The loan includes a 12-month extension option and the remaining commitment is for capital improvement. See page 7 for Renovations and Expansions.
- The remaining commitment of $4,177 is for the construction of a memory care addition to the property. See page 7 for Renovations and Expansions.
- The initial rate is 7.25% with an 8.00% IRR. The remaining commitment is comprised of a $6,098 capital improvement commitment and a $650 working capital commitment, which has been fully funded. See page 7 for Renovations and Expansions.
- The initial rate is 7.25% with an 8.00% IRR. The remaining commitment is for working capital.
- Represents a mortgage loan on a parcel of land adjacent to one of the assisted living communities secured under the $35,074 ALG mortgage loan. The land is being held for the future development of a seniors housing community. The initial rate is 7.25% with an 8.00% IRR.
MEZZANINE LOANS
CONTRACTUAL | ||||||||||||||||||
COMMITMENT | # OF | PROPERTY | # OF | MATURITY | INITIAL | INVESTMENT | ||||||||||||
YEAR | PROPERTIES | TYPE | UNITS | LOCATION | OPERATOR | DATE | RATE | BALANCE | ||||||||||
2021 | 1 | ILF | 136 units | Bend, OR | BPM Senior Living | Oct-2024 | 8.00% | (1) | $ | 4,355 | ||||||||
2022 | 5 | ILF/ALF/MC | 621 units | Various cities in OR & MT | The Springs Living | May-2027 | 8.00% | (2) | $ | 25,000 | ||||||||
- The loan includes two 12-month extension options. The initial cash rate is 8.00% for the first 18 months then increasing to 10.50% thereafter with a 10.50% IRR. Our investment represents approximately 8.00% of the total investment.
- The loan includes two 12-month extension options. The initial cash rate is 8.00% with a 11.00% IRR. Our investment represents approximately 12.00% of the total investment.
INVESTOR PRESENTATION | AUGUST 2022 | 5 |
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LTC Properties Inc. published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 14:38:02 UTC.
