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 portfolio activity including new joint ventures and loan originations.

• Portfolio realignment included property sales, joint ventures, lease restructurings, and conversion of mortgage loans to equity interests, with a focus on seniors housing and healthcare.

• Liquidity at June 30, 2024, was $189.3 million, including cash, credit facility, and ATM program availability.

• Maintained commitment to 2024 guidance and future growth, with proactive management of operator-specific headwinds and lease maturities.

Financial highlights

• Net income available to common stockholders for Q2 2024 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); FFO excluding non-recurring items was $0.67/share.

• 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; total assets were $1.89 billion.

• Sold an 80-unit Texas assisted living community post-quarter for $8 million, expecting a $3.6 million gain in Q3.

Outlook and guidance

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

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

• Committed to fund a $26.1 million mortgage loan for a new Illinois community, with funding expected to begin in early 2025 at a 9.0% rate.

• 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, expenses, and investments through 2025.