Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  LTC Properties, Inc.    LTC

LTC PROPERTIES, INC.

(LTC)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector news

LTC Properties : Q2 2020 Supplemental Operating and Financial Data

share with twitter share with LinkedIn share with facebook
07/30/2020 | 04:40pm EDT

Weatherly Court

Medford, OR

SUPPLEMENTAL OPERATING and FINANCIAL DATA

SECOND QUARTER 2020

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, 2019 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.

NON-GAAP INFORMATION

This supplemental information contains certain non-GAAP information including EBITDAre, adjusted EBITDAre, FFO, FFO excluding non-recurring items, FAD, FAD excluding non-recurring items, adjusted interest coverage ratio, and adjusted fixed charges coverage ratio. A reconciliation of this non-GAAP information is provided on pages 22, 25 and 26 of this supplemental information, and additional information is available under the "Non-GAAP Financial Measures" subsection under the "Selected Financial Data" section of our website at www.LTCreit.com.

SUPPLEMENTAL INFORMATION 2Q 2020

TABLE OF CONTENTS

2

Founded in 1992, LTC Properties, Inc. (NYSE: LTC) is a self-administered real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including preferred equity and mezzanine lending. LTC's portfolio encompasses Skilled Nursing Facilities (SNF), Assisted Living Communities (ALF), Independent Living Communities (ILF), Memory Care Communities (MC) and combinations thereof. Our main objective is to build and grow a diversified portfolio that creates and sustains shareholder value while providing our stockholders current distribution income. To meet this objective, we seek properties operated by regional

LEADERSHIP

operators, ideally offering upside and portfolio diversification (geographic, operator, property type and investment vehicle). For more information, visit www.LTCreit.com.

BOARD OF DIRECTORS

ANALYSTS

Wendy Simpson

Chairman and

Chief Executive Officer

Cece Chikhale

Executive Vice President,

Chief Accounting Officer,

and Treasurer

Peter Lyew

Vice President,

Director of Taxes

Pam Kessler

Co-President,

CFO and Secretary

Doug Korey

Executive Vice President,

Managing Director of

Business Development

Mandi Hogan

Vice President,

Marketing &

Investor Relations

Clint Malin

Co-President and

Chief Investment Officer

Gibson Satterwhite

Senior Vice President,

Asset Management

Mike Bowden

Vice President,

Investments

Any opinions, estimates, or forecasts regarding LTC's performance made by the analysts listed above do not represent the opinions, estimates, and forecasts of LTC or its management.

SUPPLEMENTAL INFORMATION 2Q 2020

LTC PROPERTIES, INC.

TRANSFER AGENT

2829 Townsgate Road

American Stock Transfer

Suite 350

and Trust Company

Westlake Village, CA 91361

6201 15th Avenue

805-981-8655

Brooklyn, NY 11219

www.LTCreit.com

866-708-5586

3

EXECUTION OF GROWTH STRATEGY

$1.5 Billion in Total Investments Underwritten

$450

$414

$375

$300

$245

$225

$185

$150

$142

$94

$109

$103

$80

$81

$75

$25

$112

$16

$68

$44

$39

$28

$0

$9

$12

$22

$17

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

YTD 2020

Development/Expansions/Renovations

Total LTC Investment

(excludes non-controlling partners' contributions)

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

4

REAL ESTATE ACTIVITIES - ACQUISITIONS AND LOAN ORIGINATIONS

(DOLLAR AMOUNTS IN THOUSANDS)

ACQUISITIONS

  1. Commitments may include capital improvement or development allowances for approved projects but excludes incentive payments and contingent payments. For a comprehensive list of our commitments, see our Quarterly Report on Form 10-Q.
  2. We entered into a JV to purchase an existing operational 74-unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,976 in cash. LTC's economic interest in the real estate JV is approximately 95%. We account for the JV on a consolidated basis. See page 6 for joint venture contributions.
  3. We acquired a 90-bedpost-acute skilled nursing center in Kansas City, MO. We also acquired a parcel of land and committed to develop a 90-bedpost-acute skilled nursing center in Independence, MO.
  4. See page 7 for development activities.
  5. Escalated by 2% in December 2019 and annually thereafter.
  6. Capital improvement commitment is available to both properties for a total of $2,285.

LOAN ORIGINATIONS

  1. We funded additional loan proceeds of $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41%, fixed for two years, and escalating annually by 2.25% thereafter.
  2. We funded additional loan proceeds of $2,000 under an existing mortgage loan. The incremental funding bears interest at 8.89%, escalating annually by 2.25% thereafter.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

5

REAL ESTATE ACTIVITIES -JOINT VENTURES

(DOLLAR AMOUNTS IN THOUSANDS)

CONSOLIDATED JOINT VENTURES

  1. Certificate of occupancy was received on March 18, 2020, and license was received on May 29, 2020. Due to COVID-19 pandemic, opening has been delayed and is currently expected to occur in Fall of 2020. This project was completed under budget.
  2. Represents a single joint venture with ownership in two properties.

Hamilton House

Cedarburg, WI

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

6

REAL ESTATE ACTIVITIES - DE NOVO DEVELOPMENT & RENOVATIONS

(DOLLAR AMOUNTS IN THOUSANDS)

CONSTRUCTION IN PROGRESS

  1. Includes purchase of land and development commitment.
  2. Remaining Commitment is calculated as follows: "Investment Commitment" less "Total Project Basis" plus "Total Capitalized Interest/Other."
  3. In August 2019, we acquired a parcel of land for $2,622 and committed to develop a 90-bedpost-acute skilled nursing center.

RENOVATIONS: MORTGAGE LOANS

  1. Commitment is secured by two properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding.
  2. Commitment is part of the total loan commitment secured by four properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

7

REAL ESTATE ACTIVITIES - LEASE-UP

(DOLLAR AMOUNTS IN THOUSANDS)

  1. Represents date of Certificate of Occupancy.
  2. Total Investment includes land acquisition, closing costs and total development funding and excludes capitalized interest.
  3. Certificate of occupancy was received in February 2019, however licensure was not received until April 2019.
  4. Certificate of occupancy was received on March 18, 2020, and license was received on May 29, 2020. Due to COVID-19 pandemic, opening has been delayed and is currently expected to occur in Fall of 2020.

Weatherly Court

Medford, OR

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

8

REAL ESTATE ACTIVITIES - LEASE-UP HISTORY

  1. Represents date of Certificate of Occupancy.
  2. Property meets the definition of stabilized by being open for 24 months but has not yet achieved the occupancy threshold requirement of 90% for ALF. The occupancy at June 30, 2020 was 56%.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

9

REAL ESTATE ACTIVITIES - CAPITAL RECYCLING

On average, LTC has sold approximately $20.7 million(1) annually

Since 2000: •

Total Sales Price of $434.2 million

• Total Gain of $183.6 million

$115

$95

$75

$55

$35

$15

($5)

2000

2003

2006

2009

2012

2015

2018

YTD

Sales

Gain/(Loss)

2020

  1. Reflects total sales price.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

10

PORTFOLIO OVERVIEW

(DOLLAR AMOUNTS IN THOUSANDS)

  1. Includes "cash rent," "straight-line rent" and "amortization of lease incentives" and excludes real estate taxes reimbursement, straight-line rent write-off and rental income from properties sold during the twelve months ended June 30, 2020.
  2. Includes "interest income from mortgage loans" and excludes interest income from mortgage loans that paid off during the twelve months ended June 30, 2020.
  3. Includes a development project consisting of a 90-bed SNF center in Missouri.
  4. Includes three parcels of land held-for use and one behavioral health care hospital.

Gross Real Property

84.8% $1.4B

29

27

180 Properties

Operators

States

1 Development project

3 Land parcels

Loans Receivable

15.2% $0.3B

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

11

PORTFOLIO METRICS

(TRAILING TWELVE MONTHS THROUGH MARCH 31, 2020 AND DECEMBER 31, 2019)

SAME PROPERTY PORTFOLIO STATISTICS (1)(2)

ASSISTED LIVING

2.00

100.0%

1.50

95.0%

1.40

1.39

90.0%

1.00

1.18

1.17

85.0%

0.50

85.8%

85.8%

80.0%

0.00

75.0%

4Q19

1Q20

Normalized EBITDAR

Normalized EBITDARM

Occupancy

Excluding Senior Lifestyle, normalized EBITDAR and EBITDARM coverage was 1.26 and 1.49, respectively and occupancy was 85.9%.

SKILLED NURSING

2.00

100.0%

1.79

1.76

1.50

90.0%

1.00

1.34

1.31

80.0%

0.50

79.6%

79.7%

70.0%

0.00

60.0%

4Q19

1Q20

Normalized EBITDAR

Normalized EBITDARM

Occupancy

STABILIZED PROPERTY PORTFOLIO (1)(2)

TOTAL PORTFOLIO PAYOR SOURCE

SNF PORTFOLIO PAYOR SOURCE

70.0%

60.0%

60.0%

50.0%

57.8%

58.4%

50.0%

40.0%

46.9%

48.3%

40.0%

30.0%

30.0%

31.4%

30.0%

29.3%

29.1%

20.0%

20.0%

21.7%

21.7%

10.0%

10.0%

12.9%

12.5%

0.0%

0.0%

4Q19

1Q20

4Q19

1Q20

Private Pay

Medicare

Medicaid

Private Pay

Medicare

Medicaid

  1. Information is from property level operator financial statements which are unaudited and have not been independently verified by LTC.
  2. The coverage and occupancy levels at our properties will be adversely affected if COVID-19 or another pandemic results in infections on a large scale at our properties, early resident move-outs, our operators delay accepting new residents due to quarantines, and/or potential occupants postpone moving to a senior housing facility.

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

12

PORTFOLIO DIVERSIFICATION - GEOGRAPHY

(AS OF JUNE 30, 2020)

States in which we have some of the highest concentration of properties are states with the highest projected increases in the 80+ population cohort over the next

WA

1

MT

1

ORID

2

WY

1

CA

NV

UT

CO

ND

MN

WI

SD

1

NE

4

IA

KS

MO

10

5

ME

22

2

NY

MI

PA

2

4

OH

NJ

7

2

IN

WV

VA

2 5

13

8

1

1

1

IL

4

1

2

1

KY

NC

AZ

NM

3

7

OK

6

AR

TX

17

17

LA

MS

1

TN

2

5

SC

27 STATES

AL

GA

2 5

SNF (72)

1

1

ALF (107)

OTH* (1)

FL

UDP(1)

4

Land (3)

7

* Behavioral health

care hospital

Represents 10 states with the highest projected increases in the 80+ population cohort from year 2020 to year 2030 Source: The American Senior Housing Association, Winter 2018, Population Growth Forecast by State

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

13

PORTFOLIO DIVERSIFICATION - GEOGRAPHY

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

  1. Due to master leases with properties in 27 states, revenue by state is not available.
  2. Includes one behavioral health care hospital and three parcels of land.

GROSS PORTFOLIO BY MSA (1)

AVERAGE PORTFOLIO AGE (1)

60.0%

49.0%

40.0%

19.0%

22.0%

20.0%

7.5%

2.5%

0.0%

MSAs 1-31 MSAs 32-100 MSAs > 100 Cities in Micro-

Cities not in

SA

MSA or Micro-

40

30

20

10

0

23 years

13 years

SA

  1. The MSA rank by population as of July 1, 2019, as estimated by the United States Census Bureau. Approximately 68% of our properties are in the top 100 MSAs.

SUPPLEMENTAL INFORMATION 2Q 2020

Skilled Nursing

Assisted Living

  1. As calculated from construction date or major renovation/expansion date. Includes owned portfolio and mortgage loans secured by 22 SNF properties in Michigan.

PORTFOLIO 14

PORTFOLIO DIVERSIFICATION - 29 OPERATORS

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

(1)

(2)

(2)

(3)

(3)

(4)

(4)

  1. Represents annualized income for the month of June 2020 for leased properties, except for Anthem and Senior Lifestyle as noted below, and annualized interest income from mortgage loans outstanding as of June 30, 2020.
  2. Given the uncertainties caused by COVID-19, we agreed to extend the lease maturity date by one year to December 31, 2021. In consideration for the one-year extension, Brookdale agreed to consolidate the previous four separate lease agreements into a single consolidated master lease effective July 1, 2020. This new master lease provides three renewal options consisting of a four-year renewal option, a five-year renewal option and a 10-year renewal option. The notice period for the first renewal option is January 1, 2021 to April 30, 2021. The economic terms of rent remain the same as the consolidated rent terms under the previous four separate lease agreements. In addition, we have extended a $4,000 capital commitment which is available through December 31, 2021 at a 7% yield.
  3. Assumes monthly payments of $900, the approximate amount of portfolio EBITDAR reported in June. An affiliate of Senior Lifestyle ("Senior Lifestyle") was provided deferred rent in the amount of $394 in April. Against a monthly contractual rent amount of $1,520, Senior Lifestyle paid $130 in May, $409 in June and $1,081 in July. As of June 30, 2020, the remaining outstanding balance of $2,755 is covered by a letter of credit and security deposit totaling $3,608. During 2Q20, we wrote off a total of $17,742 of straight-line rent receivable and lease incentives related to this master lease and will account for Senior Lifestyle on a cash basis effective July 2020. We are evaluating our options for the portfolio which may include re-leasing some or all of the properties and selling some of the properties.
  4. Anthem is currently being accounted for on a cash basis. As a result of Anthem's default under its master lease in 2017, they are on a cash basis. We anticipate that Anthem will pay annual cash rent of $9,900 million through 2020. However, the COVID-19 pandemic may adversely impact Anthem's operating cashflow and ability to pay rent. We receive regular financial performance updates from Anthem and continue to monitor Anthem's performance obligations under the master lease agreement.

Privately Held

SNF/ALF/ILF

78 Properties

5 States

Other Rehab

Privately Held

SNF/ALF

22 Properties

1 State

NYSE: BKD

ILF/ALF/MC

741 Properties

45 States

Continuing Care

Privately Held

ALF/ILF/MC/SNF

181 Properties

27 States

Short Term Stays

Privately Held

Exclusively MC

11 Properties

4 States

Privately Held

SNF/ALF/ILF

13 Properties

2 States

Transitional Care

Privately Held

SNF/MC

84 Properties

10 States

Hospitals & Other Rehab

Privately Held

SNF/ALF/ILF

25 Properties

5 States

NYSE: GEN

SNF/ALF

Nearly 400

25 States

Senior Living

Properties

Privately Held

ALF/ILF/MC/SNF

22 Properties

3 States

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

15

PORTFOLIO DIVERSIFICATION - OPERATORS

(DOLLAR AMOUNTS IN THOUSANDS)

OPERATOR UPDATE

COVID-19 UPDATE

"We commend our operators for working tirelessly to provide care where it is needed the most, and have confidence that they will continue to meet this new normal with diligence, strength and grace."

- Wendy Simpson

Our rent deferral agreements generally require the deferred rent to be paid within 6 to 24 months.

LTC evaluated deferral requests with close attention to ongoing operations, rent coverage, corporate financial health and liquidity of the operator.

See page 15 for detailed operator rent disclosures.

SUPPLEMENTAL INFORMATION 2Q 2020

92%

2Q rent collected

99%

2Q rent collected excluding

Senior Lifestyle

See page 15 for the Senior Lifestyle disclosure.

2Q deferred and delinquent rent covered

95%

by cash security deposits/letter of

credit/guarantee

* 90% covered by cash/letter of credit

DEFERRED RENT BY PROPERTY TYPE

ALF/MC

89%

11%

SNF

  • Of the $930 2Q rent deferred, approximately 89% relates to ALF/MC and 11% relates to SNF.
  • Of the $930 2Q rent deferred, we subsequently received the repayment of $277 in 2Q and an additional $70 in July.
  • Of the $653 2Q rent deferred outstanding, $339 is backed by security deposits/letter of credits.

PORTFOLIO 16

PORTFOLIO MATURITY

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

Near Term Lease Maturities:

• Four in 2021 with an annualized GAAP rent totaling $18.0 million (2)

• One in 2022 with an annualized GAAP rent totaling $0.8 million

As of June 30, 2020, approximately 93% of owned properties are covered under master leases and approximately 95% of rental revenues come from master leases or cross- default leases.

100.0%

80.0%

Leases

Loans

60.0%

(As a % of Total Annual Income)(1)

40.0%

40.5%

19.5%

20.0%

11.2%

10.3%

3.2%

5.7%

7.0%

0.0%

0.5%

2.1%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

2021

2022

2023

2024

2025

2026

2027

Thereafter

  1. Includes annualized GAAP rent for leased properties, except for Anthem and Senior Lifestyle, and annualized interest income from mortgage loans outstanding as of June 30, 2020.
  2. Includes Brookdale. See page 15 for Brookdale disclosure.

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

17

ENTERPRISE VALUE

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND NUMBER OF SHARES)

JUNE 30, 2020

CAPITALIZATION

DEBT

Bank borrowings - weighted average rate 2.2%

$

89,900

Senior unsecured notes, net of debt issue costs - weighted average rate 4.4% (1)

599,565

Total debt - weighted average rate 4.1%

689,465

31.8%

EQUITY

6/30/20

No. of shares

Closing Price

Common stock

39,242,732

$ 37.67 (2)

Total Market Value

TOTAL VALUE

Add: Non-controlling interest

Less: Cash and cash equivalents

ENTERPRISE VALUE

Debt to Enterprise Value

Debt to Annualized Adjusted EBITDAre (3)

Net Debt to Annualized Adjusted EBITDAre (3)

  1. Represents outstanding balance of $600,300, net of debt issue costs of $735.
  2. Closing price of our common stock as reported by the NYSE on June 30, 2020.
  3. See page 22 for reconciliation of annualized adjusted EBITDAre.

CAPITALIZATION

1,478,274

68.2%

Common Stock

1,478,274

68.2%

$

2,167,739

100.0%

8,411

Total Debt

(50,370)

31.8%

$

2,125,780

32.4%

4.6x

4.3x

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

18

DEBT METRICS

(DOLLAR AMOUNTS IN THOUSANDS)

LINE OF CREDIT LIQUIDITY

$600,000

$510,100

$506,100

$488,000

$503,500

$500,000

$400,000

$300,000

$200,000

$100,000

$93,900

$112,000

$96,500

$89,900

$-

2Q20

2019

2018

2017

Balance

Available

LEVERAGE RATIOS

COVERAGE RATIOS

50.0%

8.0

37.4%

37.2%

37.6%

40.0%

35.2%

6.0

32.4%

28.0% 28.0% 28.0%

4.3x

4.5x

4.3x

4.4x

4.9x

4.9x

4.7x

4.9x

30.0%

4.0

20.0%

2.0

10.0%

0.0

0.0%

Net Debt to

Adjusted EBITDAre/

Debt to Gross Asset Value

Debt to Total Enterprise Value

Adjusted EBITDAre

Fixed Charges

2Q20

2019

2018

2017

2Q20 Annualized

2019

2018

2017

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

19

DEBT MATURITY

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

DEBT STRUCTURE

Unsecured Line of Credit

13.0%

Senior Unsecured Notes

87.0%

$600,000

$500,000

Unsecured Line

Senior Unsecured Notes

$400,000

$300,000

$211,000

$200,000

$89,900

$100,000

$51,500

$54,500

$40,160

$47,160

$48,160

$49,160

$0 $49,160

$49,500

$0

$0

$0

$0

$0

$0

$0

$-

2020

2021

2022

2023

2024

2025

2026

2027

Thereafter

  1. Reflects scheduled principal payments.
  2. Includes debt issue costs which are excluded in the senior unsecured notes balance on our Consolidated Balance Sheets shown on page 24.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

20

FINANCIAL DATA SUMMARY

(DOLLAR AMOUNTS IN THOUSANDS)

NON-CASH REVENUE COMPONENTS

2Q20

3Q20(1)

4Q20(1)

1Q21(1)

2Q21(1)

Straight-line rent

$

634

(2)(3)(4)

$

216

(2)

$

(38)

(2)

$

(37)

(2)

$

(769)

(2)(3)

Amortization of lease incentives

(293)

(4)

(104)

(104)

(104)

(104)

Effective interest

1,555

1,564

1,491

1,442

1,437

Net

$

1,896

$

1,676

$

1,349

$

1,301

$

564

  1. Includes outstanding gross bank borrowings and senior unsecured notes, net of debt issue costs.
  1. For leases and loans in place at June 30, 2020, assuming no renewals, modifications or replacements and no new investments are added to our portfolio.
  2. Change from prior quarter relates to COVID-19 deferred rent and repayments. See page 16 for disclosures.
  3. Includes repayment of other deferred rent per the lease agreement.
  4. Includes a one-time lease incentive write-off related to Senior Lifestyle. See page 15 for disclosure.

COMPONENTS OF RENTAL INCOME

SUPPLEMENTAL INFORMATION 2Q 2020

  1. Decrease due to the sale of Preferred Care portfolio, partially offset by rent increases from acquisitions.
  2. Decrease due to Senior Lifestyle straight-line rent receivable write-off and normal amortization. See page 15 for disclosure.
  3. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20. See page 15 for disclosure.
  4. Represents the write-off of straight-line rent receivable due to a lease termination and transition of two senior housing communities to a new operator.

FINANCIAL 21

FINANCIAL DATA SUMMARY

(DOLLAR AMOUNTS IN THOUSANDS)

RECONCILIATION OF ANNUALIZED ADJUSTED EBITDAre AND FIXED CHARGES

THREE MONTHS ENDED

FOR THE YEAR ENDED

6/30/20

12/31/2019

12/31/2018

12/31/2017

Net income

$

1,952

$

80,872

$

155,076

$

87,340

Less: Gain on sale of real estate, net

(189)

(2,106)

(70,682)

(3,814)

Add: Loss on unconsolidated joint ventures

620

(1)

-

-

-

Add: Impairment charges

-

5,500

(1)

-

1,880

(2)

Add: Interest expense

7,546

30,582

30,196

29,949

Add: Depreciation and amortization

9,797

39,216

37,555

37,610

EBITDAre

19,726

154,064

152,145

152,965

Add/(less): Non-recurringone-time items

17,742

(3)

(1,535) (4)

(3,074) (5)

(842) (5)

Adjusted EBITDAre

$

37,468

$

152,529

$

149,071

$

152,123

Interest expense

$

7,546

$

30,582

$

30,196

$

29,949

Add: Capitalized interest

86

608

1,248

908

Fixed charges (6)

$

7,632

$

31,190

$

31,444

$

30,857

Annualized Adjusted EBITDAre

$

149,872

Annualized Fixed Charges

$

30,528

Debt (net of debt issue costs)

$

689,465

$

693,388

$

645,029

$

667,502

Net Debt (debt less cash)

$

639,095

$

689,144

$

642,373

$

662,289

Debt to Adjusted EBITDAre

4.6x

*

4.5x

4.3x

4.4x

Net Debt to Adjusted EBITDAre

4.3x

*

4.5x

4.3x

4.4x

Adjusted EBITDAre to Fixed Charges

4.9x

*

4.9x

4.7x

4.9x

  • Represents annualized 2Q20 results except for gain on sale of real estate, loss on unconsolidated joint ventures and non-recurring items.
  1. In 4Q19, we wrote down our investment in an unconsolidated joint venture ("JV") to its estimated fair value as a result of the JV entering into a contract to sell the properties comprising the JV. In 2Q20, the JV sold the properties and we incurred an additional loss of $620.
  2. Represents net write-off of $1,880 of straight-line rent and other receivables related to two properties in Overland Park and Wichita, KS.
  3. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20. See page 15 for disclosure.
  4. Represents $2,111 gain from property insurance proceeds related to a property in Texas and $1,350 deferred rent repayment from an operator offset by $1,926 write-off of straight-line rent due to a lease termination and transition of two seniors housing communities to a new operator.
  5. Represents net write-off of earn-out liabilities and the related lease incentives.
  6. Given we do not have preferred stock, our fixed-charge coverage ratio and interest coverage ratio are the same.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

22

INCOME STATEMENT DATA

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

THREE MONTHS ENDED

JUNE 30,

2020 2019

SIX MONTHS ENDED

JUNE 30,

2020 2019

(unaudited)

(audited)

Revenues

Rental income

$

20,275

$

38,277

$

58,310

$

75,901

Interest income from mortgage loans

7,820

7,351

15,597

14,662

Interest and other income

386

638

984

1,159

Total revenues

28,481

46,266

74,891

91,722

Expenses

Interest expense

7,546

7,710

15,256

15,177

Depreciation and amortization

9,797

9,860

19,466

19,467

Provision for doubtful accounts

-

84

1

167

Transaction costs

64

200

134

200

Property tax expense

4,111

3,910

8,334

8,296

General and administrative expenses

4,580

4,596

9,680

9,167

Total expenses

26,098

26,360

52,871

52,474

Other Operating Income

Gain on sale of real estate, net

189

500

44,043

500

Operating Income

2,572

20,406

66,063

39,748

Loss on unconsolidated joint ventures

(620)

-

(620)

-

Income from unconsolidated joint ventures

-

128

231

1,213

Net Income

1,952

20,534

65,674

40,961

Income allocated to non-controlling interests

(82)

(88)

(171)

(169)

Net income attributable to LTC Properties, Inc.

1,870

20,446

65,503

40,792

Income allocated to participating securities

(97)

(94)

(278)

(186)

Net income available to common stockholders

$

1,773

$

20,352

$

65,225

$

40,606

Earnings per common share:

Basic

$0.05

$0.51

$1.66

$1.03

Diluted

$0.05

$0.51

$1.66

$1.02

Weighted average shares used to calculate earnings per common share:

Basic

39,055

39,577

39,298

39,555

Diluted

39,137

39,769

39,380

39,747

Dividends declared and paid per common share

$0.57

$0.57

$1.14

$1.14

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

23

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

JUNE 30, 2020

DECEMBE R 31, 2019

ASS E TS

(unaudited)

(audited)

Investments:

Land

$

127,774

$

126,703

Buildings and improvements

1,317,917

1,295,899

Accumulated depreciation and amortization

(330,098)

(312,642)

Operating real estate property, net

1,115,593

1,109,960

Properties held-for-sale, net of accumulated depreciation: 2020-$0;2019-$35,113

-

26,856

Real property investments, net

1,115,593

1,136,816

Mortgage loans receivable, net of loan loss reserve: 2020-$2,580;2019-$2,560

256,069

254,099

Real estate investments, net

1,371,662

1,390,915

Notes receivable, net of loan loss reserve: 2020-$163;2019-$181

16,093

17,927

Investments in unconsolidated joint ventures

1,023

19,003

Investments, net

1,388,778

1,427,845

Other assets:

Cash and cash equivalents

50,370

4,244

Debt issue costs related to bank borrowings

1,766

2,164

Interest receivable

29,701

26,586

Straight-line rent receivable

29,619

45,703

Lease incentives

2,471

2,552

Prepaid expenses and other assets

7,467

5,115

Total assets

$

1,510,172

$

1,514,209

LIABILITIE S

Bank borrowings

$

89,900

$

93,900

Senior unsecured notes, net of debt issue costs: 2020-$735;2019-$812

599,565

599,488

Accrued interest

4,587

4,983

Accrued expenses and other liabilities

28,815

30,412

Total liabilities

722,867

728,783

EQUITY

Stockholders' equity:

Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2020-39,243;2019-39,752

392

398

Capital in excess of par value

849,326

867,346

Cumulative net income

1,358,985

1,293,482

Cumulative distributions

(1,429,809)

(1,384,283)

Total LTC Properties, Inc. stockholders' equity

778,894

776,943

Non-controlling interests

8,411

8,483

Total equity

787,305

785,426

Total liabilities and equity

$

1,510,172

$

1,514,209

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

24

FUNDS FROM OPERATIONS

(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

RECONCILIATION OF FFO AND FAD

THREE MONTHS ENDED

SIX MONTHS ENDED

JUNE 30,

JUNE 30,

2020

2019

2020

2019

GAAP net income available to common stockholders

$

1,773

$

20,352

$

65,225

$

40,606

Add: Depreciation and amortization

9,797

9,860

19,466

19,467

Less: Gain on sale of real estate, net

(189)

(500)

(44,043)

(500)

Add: Loss on unconsolidated joint ventures

620

-

620

-

NAREIT FFO attributable to common stockholders

12,001

29,712

41,268

59,573

Add: Non-recurring items

17,742

(1)

-

17,742

(1)

576

(2)

FFO attributable to common stockholders excluding non-recurring income

$

29,743

$

29,712

$

59,010

$

60,149

NAREIT FFO attributable to common stockholders

$

12,001

$

29,712

$

41,268

$

59,573

Non-cash income:

Less: Straight-line rental income

(634)

(1,275)

(1,473)

(2,513)

Add: Amortization of lease costs

293

(1)

94

394

(1)

181

Add: Other non-cash contra revenue

17,557

(1)

-

17,557

(1)

1,926

(3)

Less: Effective interest income from mortgage loans

(1,555)

(1,418)

(3,078)

(2,833)

Less: Deferred income from unconsolidated joint ventures

-

(6)

-

(13)

Net non-cash income

15,661

(2,605)

13,400

(3,252)

Non-cash expense:

Add: Non-cash compensation charges

1,762

1,623

3,539

3,312

Less: Capitalized interest

(86)

(73)

(277)

(333)

Net non-cash expense

1,676

1,550

3,262

2,979

Funds available for distribution (FAD)

29,338

28,657

57,930

59,300

Less: Non-recurring income

-

-

-

(1,350) (4)

Funds available for distribution (FAD) excluding non-recurring income

$

29,338

$

28,657

$

57,930

$

57,950

NAREIT Diluted FFO attributable to common stockholders per share

$0.31

$0.75

$1.05

$1.50

  1. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20. See page 15 for disclosure.
  2. Represents $1,926 write-off of straight-line rent due to a lease termination and the properties were transitioned to another lease and $1,350 of deferred rent repayment from an operator.
  3. Represents $1,926 write-off of straight-line rent due to a lease termination and the properties were transitioned to another lease.
  4. Represents $1,350 deferred rent repayment from an operator.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

25

FUNDS FROM OPERATIONS

(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

RECONCILIATION OF FFO PER SHARE

FOR THE THREE MONTHS ENDED JUNE 30,

FFO/FAD attributable to common stockholders Non-recurringone-time items

FFO/FAD attributable to common stockholders excluding non-recurring income

Effect of dilutive securities:

Participating securities

Diluted FFO/FAD assuming conversion

FFO

FAD

2020

2019

2020

2019

$

12,001

$

29,712

$

29,338

$

28,657

17,742

(1)

-

-

-

29,743

29,712

29,338

28,657

97

94

97

94

$

29,840

$

29,806

$

29,435

$

28,751

Shares for basic FFO/FAD per share

39,055

39,577

39,055

39,577

Effect of dilutive securities:

Stock options

-

5

-

5

Performance-based stock units

82

187

82

187

Participating securities

172

165

172

165

Shares for diluted FFO/FAD per share

39,309

39,934

39,309

39,934

FOR THE SIX MONTHS ENDED JUNE 30,

FFO/FAD attributable to common stockholders Non-recurringone-time items

FFO/FAD attributable to common stockholders excluding non-recurring income

Effect of dilutive securities:

Participating securities

Diluted FFO/FAD assuming conversion

Shares for basic FFO/FAD per share

Effect of dilutive securities:

Stock options

Performance based stock units

Participating securities

Shares for diluted FFO/FAD per share

FFO

FAD

2020

2019

2020

2019

$

41,268

$

59,573

$

57,930

$

59,300

17,742

(1)

576

(2)

-

(1,350) (3)

59,010

60,149

57,930

57,950

-

186

-

186

$

59,010

$

60,335

$

57,930

$

58,136

39,298

39,555

39,298

39,555

-

5

-

5

82

187

82

187

-

161

-

161

39,380

39,908

39,380

39,908

  1. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20.
  2. Represents $1,350 deferred rent repayment from an operator and $1,926 write-off of straight-line rent due to a lease termination and transition of two senior housing communities to a new operator.
  3. Represents $1,350 deferred rent repayment from an operator.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

26

GLOSSARY

Assisted Living Communities ("ALF"): The ALF portfolio consists of assisted living, independent living, and/or memory care properties. (See Independent Living and Memory Care) Assisted living properties are seniors housing properties serving elderly persons who require assistance with activities of daily living, but do not require the constant supervision skilled nursing properties provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs.

Contractual Lease Rent: Rental revenue as defined by the lease agreement between us and the operator for the lease year.

Earnings Before Interest, Tax, Depreciation and Amortization for Real Estate ("EBITDAre"): As defined by the National Association of Real Estate Investment Trusts ("NAREIT"), EBITDAre is calculated as net income (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense,

  1. real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate,
  1. gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated partnerships and joint ventures.

Funds Available for Distribution ("FAD"): FFO excluding the effects of straight-line rent, amortization of lease costs, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges.

Funds From Operations ("FFO"): As defined by NAREIT, net income available to common stockholders (computed in accordance with U.S. GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

GAAP Lease Yield: GAAP rent divided by the sum of the purchase price and transaction costs.

GAAP Rent: Total rent we will receive as a fixed amount over the initial term of the lease and recognized evenly over that term. GAAP rent recorded in the early years of a lease is higher than the cash rent received and during the later years of the lease, the cash rent received is higher than GAAP rent recognized. GAAP rent is commonly referred to as straight-line rental income.

Gross Asset Value: The carrying amount of total assets after adding back accumulated depreciation and loan loss reserves, as reported in the company's consolidated financial statements.

Gross Investment: Original price paid for an asset plus capital improvements funded by LTC, without any depreciation deductions. Gross Investment is commonly referred to as undepreciated book value.

Independent Living Communities ("ILF"): Seniors housing properties offering a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers. ILFs are also known as retirement communities or seniors apartments.

Interest Income: Represents interest income from mortgage loans and other notes.

Licensed Beds/Units: The number of beds and/or units that an operator is authorized to operate at seniors housing and long-term care properties. Licensed beds and/or units may differ from the number of beds and/or units in service at any given time.

Memory Care Communities ("MC"): Seniors housing properties offering specialized options for seniors with Alzheimer's disease and other forms of dementia. These facilities offer dedicated care and specialized programming for various conditions relating to memory loss in a secured environment that is typically smaller in scale and more residential in nature than traditional assisted living facilities. These facilities have staff available 24 hours a day to respond to the unique needs of their residents.

Metropolitan Statistical Areas ("MSA"): Based on the U.S. Census Bureau, MSA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A metro area contains a core urban area of 50,000 or more population. MSAs 1 to 31 have a population of 20.3M - 2.1M. MSAs 32 to 100 have a population of 2.1M - 0.6M. MSAs less than 100 have a population of 0.5M - 55K. Cities in a Micro-SA have a population of 216K - 13K. Cities not in a MSA has population of less than 100K.

Mezzanine: In certain circumstances, the Company strategically allocates a portion of its capital deployment toward mezzanine loans to grow relationships with operating companies that have not typically utilized sale leaseback financing as a component of their capital structure. Mezzanine financing sits between senior debt and common equity in the capital structure, and typically is used to finance development projects or value-add opportunities on existing operational properties. We seek market-based,risk-adjusted rates of return typically between 12-18% with the loan term typically between four to eight years. Security for mezzanine loans can include all or a portion of the following credit enhancements; secured second mortgage, pledge of equity interests and personal/corporate guarantees. Mezzanine loans can be recorded for GAAP purposes as either a loan or joint venture depending upon specifics of the loan terms and related credit enhancements.

SUPPLEMENTAL INFORMATION 2Q 2020

GLOSSARY

27

GLOSSARY

Micropolitan Statistical Areas ("Micro-SA"): Based on the U.S. Census Bureau, Micro-SA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A micro area contains an urban core of at least 10,000 population.

Mortgage Loan: Mortgage financing is provided on properties based on our established investment underwriting criteria and secured by a first mortgage. Subject to underwriting, additional credit enhancements may be required including, but not limited to, personal/corporate guarantees and debt service reserves. When possible, LTC attempts to negotiate a purchase option to acquire the property at a future time and lease the property back to the borrower.

Net Real Estate Assets: Gross real estate investment less accumulated depreciation. Net Real Estate Asset is commonly referred to as Net Book Value ("NBV").

Non-cashRental Income: Straight-line rental income and amortization of lease inducement.

Non-cashCompensation Charges: Vesting expense relating to stock options and restricted stock.

Normalized EBITDAR Coverage: The trailing twelve month's earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, and rent divided by the operator's contractual lease rent. Management fees are imputed at 5% of revenues.

Normalized EBITDARM Coverage: The trailing twelve month's earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, rent, and management fees divided by the operator's contractual lease rent.

Occupancy: The weighted average percentage of all beds and/or units that are occupied at a given time. The calculation uses the trailing twelve months and is based on licensed beds and/or units which may differ from the number of beds and/or units in service at any given time.

Operator Financial Statements: Property level operator financial statements which are unaudited and have not been independently verified by us.

Payor Source: LTC revenue by operator underlying payor source for the period presented. LTC is not a Medicaid or a Medicare recipient. Statistics represent LTC's rental revenues times operators' underlying payor source revenue percentage. Underlying payor source revenue percentage is calculated from property level operator financial statements which are unaudited and have not been independently verified by us.

Private Pay: Private pay includes private insurance, HMO, VA, and other payors.

Purchase Price: Represents the fair value price of an asset that is exchanged in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets; it is not a forced transaction (for example, a forced liquidation or distress sale).

Rental Income: Represents GAAP rent net of amortized lease inducement cost.

Same Property Portfolio ("SPP"): Same property statistics allow for the comparative evaluation of performance across a consistent population of LTC's leased property portfolio and the Prestige Healthcare mortgage loan portfolio. Our SPP is comprised of stabilized properties occupied and operated throughout the duration of the quarter-over-quarter comparison periods presented (excluding assets sold and assets held-for-sale). Accordingly, a property must be occupied and stabilized for a minimum of 15 months to be included in our SPP.

Skilled Nursing Properties ("SNF"): Seniors housing properties providing restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many SNFs provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient's family, private health insurance, or through the federal Medicare or state Medicaid programs.

Stabilized: Properties are generally considered stabilized upon the earlier of achieving certain occupancy thresholds (e.g. 80% for SNFs and 90% for ALFs) and, as applicable, 12 months from the date of acquisition/lease transition or, in the event of a de novo development, redevelopment, major renovations or addition, 24 months from the date the property is first placed in or returned to service, or properties acquired in lease-up.

Under Development Properties ("UDP"): Development projects to construct seniors housing properties.

SUPPLEMENTAL INFORMATION 2Q 2020

GLOSSARY

28

Disclaimer

LTC Properties Inc. published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 20:40:08 UTC


share with twitter share with LinkedIn share with facebook
All news about LTC PROPERTIES, INC.
10/21LTC PROPERTIES, INC. : Ex-dividend day for
FA
10/09LTC PROPERTIES : Announces Date of Third Quarter 2020 Earnings Release, Conferen..
BU
10/06LTC PROPERTIES : Investor Presentation October 2020
PU
10/01LTC PROPERTIES : Declares Its Monthly Common Stock Cash Dividend for the Fourth ..
BU
09/21LTC PROPERTIES, INC. : Ex-dividend day for
FA
09/21LTC PROPERTIES, INC. : Ex-dividend day for
FA
08/21LTC PROPERTIES : Senior Management to Participate in the BMO Real Assets Confere..
BU
08/20LTC PROPERTIES, INC. : Ex-dividend day for
FA
08/06LTC PROPERTIES : Transcript of LTC Properties, Inc. Q2 2020 Earnings Call
PU
07/31LTC PROPERTIES : Juniper Communities Presentation - Lynne Katzmann guest speaker
PU
More news
Financials (USD)
Sales 2020 163 M - -
Net income 2020 101 M - -
Net Debt 2020 633 M - -
P/E ratio 2020 13,2x
Yield 2020 6,73%
Capitalization 1 352 M 1 352 M -
EV / Sales 2020 12,2x
EV / Sales 2021 11,3x
Nbr of Employees 22
Free-Float 98,2%
Chart LTC PROPERTIES, INC.
Duration : Period :
LTC Properties, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends LTC PROPERTIES, INC.
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 10
Average target price 36,25 $
Last Close Price 33,89 $
Spread / Highest target 18,0%
Spread / Average Target 6,96%
Spread / Lowest Target -5,58%
EPS Revisions
Managers
NameTitle
Wendy L. Simpson Chairman & Chief Executive Officer
Pamela J. Shelley-Kessler Co-President, Chief Financial Officer & Secretary
Clint B. Malin Co-President & Chief Investment Officer
Timothy J. Triche Independent Director
Boyd W. Hendrickson Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
LTC PROPERTIES, INC.-24.30%1 330
WELLTOWER INC.-34.32%22 413
VENTAS-28.73%15 353
HEALTHPEAK PROPERTIES, INC.-20.48%14 755
MEDICAL PROPERTIES TRUST, INC.-15.49%9 433
OMEGA HEALTHCARE INVESTORS, INC.-29.14%6 811