LTC PROPERTIES INC Q3 FY2024 earnings call

Wendy Simpson started by noting the positive third and fourth quarters to date, with $4.1 million in unrecorded revenue from former operators, over $98 million from loan receivable payoffs/paydowns, and nearly $63 million from equity sales under the ATM program, leading to deleveraging. They're evaluating RIDEA, and Clint Malin will provide more detail later. Pam Kessler discussed net income increase due to onetime income, lower interest expense, and rent increases. They committed to fund a $26.1 million mortgage loan, had a $3.6 million gain on sale, received $39.7 million from loan payoffs, and sold shares under the ATM program. Deleveraging led to pro forma debt to adjusted EBITDA down to 4.2 times and fixed charge coverage ratio up to 4.8. Clint Malin provided portfolio updates: ALG paid rent, Prestige occupancy improved, lease-up portfolio expected $3.6 million revenue in 2024, and they're evaluating RIDEA with initial range of gross investment $150M-$200M by second quarter 2025.

Fourth quarter FFO excluding non-recurring items is between $0.65 and $0.66 per share, down from third quarter due to mortgage loan payoffs not redeployed. Full year FFO excluding non-recurring items remains $2.63 to $2.65 per share. Guidance assumes no additional investment activity, asset sales, financing, or equity issuances.

Forward-looking statements subject to risks and uncertainties detailed in LTC Properties' SEC filings from time to time.

Q: Details on upfront platform investments for RIDEA A: Clint Malin said they're analyzing resources needed, will provide more info on next quarterly call, looking at budgets for accretion Q: External growth conversations on RIDEA A: Clint Malin said seeing opportunities, operators find it appealing, competitive cap rates Q: Size/scope of RIDEA in legacy business A: Pam Kessler said it could be a significant part of the business, difficult to quantify dollar amount Q: 2025 loan repayments A: Pam Kessler said $30M scheduled, Clint Malin said ALG financing could add to maturities Q: ATM use of proceeds A: Pam Kessler said deleveraged to create liquidity for investments Q: Platform investments for RIDEA A: Clint Malin said adding resources, evaluating, scaling as external growth story Q: Prestige improvements A: Clint Malin said encouraged by occupancy growth, given runway to build back occupancy Q: External growth outlook A: Clint Malin said actively looking, more details next call