LTC Properties (LTC) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 rose to $19.7 million, up from $6.0 million in Q2 2023, driven by higher rental and interest income, lower impairment losses, and insurance proceeds.

• Total revenues for Q2 2024 increased to $65.2 million, reflecting growth in rental and mortgage interest income and insurance proceeds.

• Portfolio realignment included property sales, new joint ventures, and lease restructurings, with significant activity involving ALG Senior and Encore Senior Living.

• Maintained a conservative approach to liquidity and capital allocation, with $189.3 million in liquidity at quarter-end.

• Subsequent to quarter-end, sold an 80-unit Texas assisted living community for $8.0 million, expecting a $3.6 million gain.

Financial highlights

• Q2 2024 net income available to common stockholders was $19.2 million ($0.44 per share), up from $6.0 million ($0.15 per share) in Q2 2023.

• Funds from Operations (FFO) for Q2 2024 was $28.4 million ($0.65/share), compared to $27.2 million ($0.66/share) in Q2 2023.

• FFO excluding non-recurring items was $29.3 million; FAD excluding non-recurring items was $28.7 million.

• Dividends declared and paid per common share were $0.57 for the quarter; $49.4 million paid in the first half of 2024.

• Gross investments reached $2.19 billion as of June 30, 2024.

Outlook and guidance

• Committed to fund a $26.1 million mortgage loan for a new Illinois community, with funding expected to begin in early 2025.

• Q3 FFO guidance (excluding non-recurring items) is $0.66–$0.67 per share; full-year FFO guidance remains $2.63–$2.65 per share.

• Guidance assumes no additional investment activity, asset sales, financing, or equity issuances, but expects $80.5 million in loan receivables to pay off at maturity.

• Rent deferrals and lease amendments with ALG Senior are in place through year-end 2024, with cross-default and cross-collateralization for added security.

• Management expects sufficient liquidity for dividends, corporate expenses, and capital investments through 2025.