Ltc Properties, Inc. · NYSE:LTC
Ltc Properties — Q2 2020 Earnings Presentation
28 slides from Ltc Properties's earnings presentation, Jul 30, 2020
Slide 1: Supplemental Operating and Financial Data Second Quarter 2020
SUPPLEMENTAL OPERATING and FINANCIAL DATA SECOND QUARTER 2020 Weatherly Court Medford, OR
Slide 2: Table of Contents and Forward-Looking Statements
SUPPLEMENTAL INFORMATION 2Q 2020 TABLE OF CONTENTS 2 FORWARD - LOOKING STATEMENTS This supplemental information contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended, a
Slide 3: Leadership, Company Overview and Board
SUPPLEMENTAL INFORMATION 2Q 2020 Wendy Simpson Chairman and Chief Executive Officer Pam Kessler Co - President, CFO and Secretary Clint Malin Co - President and Chief Investment Officer Cece Chikhale Executive Vice President, Chief Accounting Officer, and Treasurer Doug Korey Executive Vice Presiden
Slide 4: Execution of Growth Strategy: Investments
SUPPLEMENTAL INFORMATION 2Q 2020 $9 $68 $44 $12 $112 $39 $22 $28 $17 $94 $109 $245 $185 $25 $414 $142 $103 $80 $81 $16 $0 $75 $150 $225 $300 $375 $450 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020 Development/Expansions/Renovations Total LTC Investment $1.5 Billion in Total Investments
Slide 5: Real Estate Activities: Investments
SUPPLEMENTAL INFORMATION 2Q 2020 STATED # OF PROPERTY # BEDS/ LOAN MATURITY FUNDED AT INTEREST PROPERTIES TYPE UNITS LOCATION TYPE DATE OPERATOR ORIGINATION ORIGINATION RATE 2019 6/20 2 SNF 205 beds East Lansing, MI (1) Mortgage Jan-2045 Prestige Healthcare 7,500$ 7,500$ 9.41% 2020 6/2 4 SNF 501 bed
Slide 6: Real Estate Activities – Joint Ventures
SUPPLEMENTAL INFORMATION 2Q 2020 REAL ESTATE ACTIVITIES – JOINT VENTURES (DOLLAR AMOUNTS IN THOUSANDS) 6 CONSOLIDATED JOINT VENTURES LTC LTC INVESTMENT PROPERTY # BEDS/ LTC FUNDED REMAINING YEAR LOCATION OPERATOR TYPE INVESTMENT PURPOSE UNITS LTC COMMITMENT TO DATE COMMITMENT 2017 Cedarburg, WI Teal
Slide 7: Real Estate Activities – De Novo Development & Renovations
SUPPLEMENTAL INFORMATION 2Q 2020 ESTIMATED CASH RENT CONTRACTUAL TOTAL TOTAL INCEPTION COMMITMENT # OF PROPERTY INITIAL CASH # BEDS/ INVESTMENT 2Q20 CAPITALIZED PROJECT BASIS REMAINING DATE YEAR LOCATION OPERATOR PROJECTS TYPE YIELD UNITS COMMITMENT (1) FUNDING 4Q20 (3) 2019 Independence, MO Ignite
Slide 8: Real Estate Activities – Lease-Up
SUPPLEMENTAL INFORMATION 2Q 2020 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 occupa
Slide 9: Lease-Up Stabilization History
SUPPLEMENTAL INFORMATION 2Q 2020 # OF MONTHS PROPERTY PROJECT # BEDS/ DATE DATE DATE TO PROPERTY LOCATION OPERATOR TYPE TYPE UNITS ACQUIRED OPENED (1) STABILIZED STABILIZATION Highline Place Littleton, CO Anthem MC Development 60 units May-2012 Jul-2013 Sep-2013 2 Willowbrook Place - Kipling Littlet
Slide 10: Real Estate Activities – Capital Recycling
SUPPLEMENTAL INFORMATION 2Q 2020 ($5) $15 $35 $55 $75 $95 $115 2000 2003 2006 2009 2012 2015 2018 YTD 2020 Sales Gain/(Loss) (1) Reflects total sales price. 10 Millions • Total Sales Price of $434.2 million • Total Gain of $183.6 million Since 2000: REAL ESTATE ACTIVITIES – CAPITAL RECYCLING On aver
Slide 11: Portfolio Overview
SUPPLEMENTAL INFORMATION 2Q 2020 (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
Slide 12: Portfolio Metrics
SUPPLEMENTAL INFORMATION 2Q 2020 PORTFOLIO METRICS (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 pan
Slide 13: Portfolio Diversification – Geography
SUPPLEMENTAL INFORMATION 2Q 2020 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 decade. Represents 10 states with the highes
Slide 14: Portfolio Diversification – Geography by MSA and State
SUPPLEMENTAL INFORMATION 2Q 2020 49.0% 19.0% 22.0% 7.5% 2.5% 0.0% 20.0% 40.0% 60.0% MSAs 1-31 MSAs 32-100 MSAs > 100 Cities in Micro- SA Cities not in MSA or Micro- SA 23 years 13 years 0 10 20 30 40 Skilled Nursing Assisted Living Years GROSS PORTFOLIO BY MSA (1) PORTFOLIO DIVERSIFICATION – GEOGRAP
Slide 15: Portfolio Diversification – Operators
SUPPLEMENTAL INFORMATION 2Q 2020 PORTFOLIO DIVERSIFICATION – 29 OPERATORS (AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS) 15 Privately Held SNF/ALF/ILF Transitional Care 13 Properties 2 States Privately Held SNF/MC Hospitals & Other Rehab 84 Properties 10 States Privately Held SNF/ALF/ILF 25 Prop
Slide 16: COVID-19 Update and Deferred Rent
SUPPLEMENTAL INFORMATION 2Q 2020 89% 11% ALF/MC SNF DEFERRED RENT BY PROPERTY TYPE ▪ 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
Slide 17: Portfolio Maturity
SUPPLEMENTAL INFORMATION 2Q 2020 11.2% 0.5% 2.1% 3.2% 5.7% 10.3% 7.0% 40.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19.5% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2021 2022 2023 2024 2025 2026 2027 Thereafter Leases Loans (As a % of Total Annual Income) (1) PORTFOLIO MATURITY (AS OF JUNE 30, 2020, DOLLAR AMOU
Slide 18: Enterprise Value and Capitalization
SUPPLEMENTAL INFORMATION 2Q 2020 Common Stock 68.2% Total Debt 31.8% ENTERPRISE VALUE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND NUMBER OF SH ARES) CAPITALIZATION (1) Represents outstanding balance of $600,300, net of debt issue costs of $735. (2) Closing price of our common stock as report
Slide 19: Debt Metrics
SUPPLEMENTAL INFORMATION 2Q 2020 DEBT METRICS (DOLLAR AMOUNTS IN THOUSANDS) 19 LEVERAGE RATIOS COVERAGE RATIOS 4.3x 4.9x 4.5x 4.9x 4.3x 4.7x 4.4x 4.9x 0.0 2.0 4.0 6.0 8.0 Net Debt to Adjusted EBITDAre Adjusted EBITDAre/ Fixed Charges 2Q20 Annualized 2019 2018 2017 LINE OF CREDIT LIQUIDITY $89,900 $9
Slide 20: Debt Maturity and Structure
SUPPLEMENTAL INFORMATION 2Q 2020 Senior Unsecured Notes 87.0% Unsecured Line of Credit 13.0% $0 $0 $89,900 $0 $0 $0 $0 $0 $0 $40,160 $47,160 $48,160 $49,160 $49,160 $49,500 $51,500 $54,500 $211,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2020 2021 2022 2023 2024 2025 2026 2027 There
Slide 21: Financial Data Summary
SUPPLEMENTAL INFORMATION 2Q 2020 12/31/19 12/31/18 12/31/17 Gross real estate assets $ 1,704,340 $ 1,741,230 $ 1,666,842 $ 1,618,284 Net real estate investments $ 1,371,662 $ 1,390,915 $ 1,349,520 $ 1,309,996 Gross asset value $ 1,843,013 $ 1,864,705 $ 1,831,070 $ 1,774,024 Total debt (1) $ 689,465
Slide 22: Reconciliation of Annualized Adjusted EBITDAre and Fixed Charges
SUPPLEMENTAL INFORMATION 2Q 2020 FINANCIAL DATA SUMMARY (DOLLAR AMOUNTS IN THOUSANDS) RECONCILIATION OF ANNUALIZED ADJUSTED EBITDA re AND FIXED CHARGES (1) In 4 Q 19 , we wrote down our investment in an unconsolidated joint venture (“JV”) to its estimated fair value as a result of the JV entering in
Slide 23: Income Statement Data
SUPPLEMENTAL INFORMATION 2Q 2020 INCOME STATEMENT DATA (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 23 FINANCIAL 2020 2019 2020 2019 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 To
Slide 24: Consolidated Balance Sheets
SUPPLEMENTAL INFORMATION 2Q 2020 CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 24 FINANCIAL ASSETS 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 p
Slide 25: Funds From Operations: Reconciliation of FFO and FAD
SUPPLEMENTAL INFORMATION 2Q 2020 FUNDS FROM OPERATIONS (UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) RECONCILIATION OF FFO AND FAD 25 (1) Represents $ 17 , 557 write - off of straight - line rent receivable and $ 185 write - off of lease incentives relating to Senior Lifestyle’s master
Slide 26: FFO/FAD Attributable to Common Stockholders
SUPPLEMENTAL INFORMATION 2Q 2020 FOR THE THREE MONTHS ENDED JUNE 30, FFO/FAD attributable to common stockholders 12,001$ 29,712$ 29,338$ 28,657$ Non-recurring one-time items 17,742 (1) — — — FFO/FAD attributable to common stockholders excluding non-recurring income 29,743 29,712 29,338 28,657 Effect
Slide 27: Glossary of Terms
SUPPLEMENTAL INFORMATION 2Q 2020 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 req
Slide 28: Glossary of Terms (continued)
SUPPLEMENTAL INFORMATION 2Q 2020 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 statis