Ltc Properties, Inc. · NYSE:LTC
Ltc Properties — Q1 2023 Earnings Presentation
29 slides from Ltc Properties's earnings presentation, Apr 27, 2023
Slide 1: Renewal and Transition Supplemental Operating and Financial Data First Quarter 2023
RENEWAL AND TRANSITION SUPPLEMENTAL OPERATING AND FINANCIAL DATA FIRST QUARTER 2023
Slide 2: Forward-Looking Statements
1Q 2023 SUPPLEMENTAL REPORT 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, adopted pursuant to the Pr
Slide 3: Board of Directors, Leadership, Analysts and Company Information
1Q 2023 SUPPLEMENTAL REPORT 3 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. BOARD OF DIRECTORS ANALYSTS LEADERSHIP LTC PROPERTIES, INC. 2829 Townsgate Road Suite 35
Slide 4: Real Estate Activities – Investments and Capital Recycling Since 2014
1Q 2023 SUPPLEMENTAL REPORT Million $ 413.1 Total Sales (2) INVESTMENTS I 4 Million 190.5 Total Gains $ Billion $ 1.3 Total Investments (1) MILLION REAL ESTATE ACTIVITIES – INVESTMENTS AND CAPITAL RECYCLING SINCE 2014 (FROM JANUARY 1, 2014 THROUGH APRIL 27, 2023) $0 $50 $100 $150 $200 $250 $300 $350
Slide 5: Real Estate Activities – Acquisitions and Financing Receivables
1Q 2023 SUPPLEMENTAL REPORT ACQUISITIONS 5 INVESTMENTS I REAL ESTATE ACTIVITIES – ACQUISITIONS AND FINANCING RECEIVABLES - 2022 - 2023 YTD CONTRACTUAL # OF PROPERTY # OF DATE OF INITIAL PURCHASE PROPERTIES TYPE BEDS LOCATION OPERATOR CONSTRUCTION CASH YIELD PRICE 2022 4/1 4 SNF 339 beds Various citi
Slide 6: Real Estate Activities – Mortgage & Mezzanine Loan Originations
1Q 2023 SUPPLEMENTAL REPORT MORTGAGE LOANS 6 INVESTMENTS I REAL ESTATE ACTIVITIES – MORTGAGE & MEZZANINE LOAN ORIGINATIONS - 2022 - 2023 YTD (DOLLAR AMOUNTS IN THOUSANDS) MEZZANINE LOANS (1) The loan includes two 12 - month extension options. The initial cash rate is 8.00% with a 11.00% IRR. Our inv
Slide 7: Real Estate Activities – Joint Ventures Investments
1Q 2023 SUPPLEMENTAL REPORT INVESTMENT PROPERTY # OF YEAR TYPE UNITS/BEDS LOCATION OPERATOR INVESTMENT PURPOSE 2017 ILF/ALF/MC 110 units Cedarburg, WI Tealwood Senior Living Owned Real Estate 22,244$ 2,305$ 19,939$ 2017 ALF 87 units Spartanburg, SC ALG Senior Owned Real Estate 11,660 1,241 10,419 19
Slide 8: Development and Renovation Projects
1Q 2023 SUPPLEMENTAL REPORT CONTRACTUAL TOTAL COMMITMENT # OF PROPERTY PROJECT INITIAL INVESTMENT 1Q23 FUNDED REMAINING YEAR PROPERTIES TYPE TYPE LOCATION OPERATOR CASH YIELD TO DATE COMMITMENT — (1) 2018 1 SNF Renovation Grand Haven, MI Prestige Healthcare 9.41% 3,000$ 31$ 1,807$ 1,193$ — (2) 2021
Slide 9: Portfolio Overview by Investment Type and Property Type
1Q 2023 SUPPLEMENTAL REPORT # OF % OF % OF BY INVESTMENT TYPE PROPERTIES INVESTMENT REVENUES (1) REVENUES INCOME STATEMENT LINE Owned Portfolio (2) 149 1,389,222$ 65.8% 110,762$ 67.7% Rental Income Financing Receivables 14 198,077 9.5% 5,514 3.4% Interest Income from Financing Receivables Mortgage L
Slide 10: Portfolio Overview – Detail
1Q 2023 SUPPLEMENTAL REPORT PORTFOLIO I 10 PORTFOLIO OVERVIEW – DETAIL (DOLLAR AMOUNTS IN THOUSANDS) # OF OWNED PORTFOLIO PROPERTIES RENTAL INCOME (1) Assisted Living (2) 98 785,912$ 37.2% 53,035$ 32.4% Skilled Nursing 50 591,305 28.0% 56,727 34.7% Other 1 12,005 0.6% 1,000 0.6% Total 149 1,389,222$
Slide 11: Operators
1Q 2023 SUPPLEMENTAL REPORT OPERATORS # OF PROPS % % % GROSS INVESTMENT % Prestige Healthcare (6) 24 27,784$ 15.7% 27,784$ 15.5% 32,595$ 17.7% 271,904$ 12.9% ALG Senior (5)(6) 43 17,979 10.2% 17,979 10.0% 19,197 10.4% 326,288 15.5% Brookdale Senior Living (6) 35 15,398 8.7% 15,398 8.6% 15,393 8.4% 1
Slide 12: Portfolio Revenue Updates
1Q 2023 SUPPLEMENTAL REPORT PORTFOLIO I 12 REVENUE UPDATES During 1Q23, we collected 98.4%, or $39,014, of contractual rent and mortgage interest income and provided 1.6%, or $645, of aba ted rent to an existing operator. We provided $215 of abated rent in April 2023 and agreed to provide rent abate
Slide 13: Portfolio Diversification – Maturity
1Q 2023 SUPPLEMENTAL REPORT 9.1% 5.2% 4.2% 9.9% 6.2% 2.2% 4.0% 4.8% 17.6% 8.3% 0.1% 3.4% 3.6% 1.4% 17.2% 0.3% 1.5% 0.1% 0.1% 0.8% 0.0% 20.0% 40.0% 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter RENTAL FINANCING INTEREST OTHER NOTES JV (As a % of Total Annualized GAAP Income) Near Term Maturities
Slide 14: Portfolio Diversification – Geography
1Q 2023 SUPPLEMENTAL REPORT States in which we have some of the highest concentration of properties are states with the highest projected increases in the 80+ population cohort over the next decade. PORTFOLIO I 14 PORTFOLIO DIVERSIFICATION - GEOGRAPHY (AS OF MARCH 31, 2023, DOLLAR AMOUNTS IN THOUSAN
Slide 15: Portfolio Diversification – Geography by State
1Q 2023 SUPPLEMENTAL REPORT 47.8% 17.6% 25.0% 6.5% 3.1% 0.0% 20.0% 40.0% 60.0% 80.0% MSAs 1-31 MSAs 32-100 MSAs > 100 Cities in Micro-SA Cities not in MSA or Micro-SA 20 years 15 years 0 10 20 30 40 Skilled Nursing Assisted Living Years (1) The MSA rank by population as of July 1, 2021, as estimated
Slide 16: Operator Coverage and Occupancy
1Q 2023 SUPPLEMENTAL REPORT (1) Information is from property level operator financial statements which are unaudited and have not been independently verified by LTC. The same store portfolio excludes each property currently, or formerly, operated by Senior Lifestyle and Senior Care and will be added
Slide 17: Enterprise Value and Capitalization
1Q 2023 SUPPLEMENTAL REPORT MARCH 31, 2023 Revolving line of credit - WA rate 5.9% (1) 270,100$ Term loans, net of debt issue costs - WA rate 2.7% (2) 99,545 Senior unsecured notes, net of debt issue costs - WA rate 4.2% (3) 531,400 Total debt - WA rate 4.6% 901,045 38.3% No. of shares Common stock
Slide 18: Debt Metrics
1Q 2023 SUPPLEMENTAL REPORT LEVERAGE RATIOS COVERAGE RATIOS LINE OF CREDIT LIQUIDITY FINANCIAL I 18 DEBT METRICS (DOLLAR AMOUNTS IN THOUSANDS) 35.8% 29.8% 38.4% 34.9% 37.4% 34.2% 41.0% 37.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Debt to Gross Asset Value Debt to Total Enterprise Value 2020 2021 2022 1Q
Slide 19: Debt Structure and Maturity
1Q 2023 SUPPLEMENTAL REPORT Senior Unsecured Notes 59.0% Term Loans 11.1% Revolving Line of Credit 29.9% $270,100 $50,000 $50,000 $42,160 $49,160 $49,500 $51,500 $54,500 $55,000 $63,000 $67,000 $101,000 $- $100,000 $200,000 $300,000 $400,000 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter Revolvi
Slide 20: Financial Data Summary
1Q 2023 SUPPLEMENTAL REPORT (1) For leases and loans in place at March 31, 2023, assuming no renewals, modifications or replacements and no new investments are added to our portfolio. (2) Includes deferred interest related to Prestige Healthcare. See page 12 for further discussion. (3) Includes cash
Slide 21: Reconciliation of Annualized Adjusted EBITDAre and Fixed Charges
1Q 2023 SUPPLEMENTAL REPORT RECONCILIATION OF ANNUALIZED ADJUSTED EBITDA re AND FIXED CHARGES FINANCIAL I 21 FINANCIAL DATA SUMMARY (DOLLAR AMOUNTS IN THOUSANDS) (1) Represents the gain from insurance proceeds related to previously sold properties . (2) Represents a loss of $ 758 from the sale of pr
Slide 22: Consolidated Statements of Income
1Q 2023 SUPPLEMENTAL REPORT FINANCIAL I 22 CONSOLIDATED STATEMENTS OF INCOME (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2023 2022 Revenues Rental income 31,735$ 30,324$ Interest income from financing receivables (1) 3,751 — Interest income from mortgage loans 11,244 9,636 Interest and other in
Slide 23: Consolidated Balance Sheets
1Q 2023 SUPPLEMENTAL REPORT FINANCIAL I 23 CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) ASSETS Investments: Land $ 123,338 $ 124,665 Buildings and improvements 1,258,721 1,273,025 Accumulated depreciation and amortization (390,013) (389,182) Operating real estate prop
Slide 24: Funds From Operations – Reconciliation of FFO and FAD
1Q 2023 SUPPLEMENTAL REPORT (1) Represents the net of ( 2 ) and ( 3 ) below . (2) Includes $ 1 , 832 of provision for credit losses related to the $ 121 , 321 acquisition accounted for as a financing receivable and $ 61 , 900 of mortgage loan originations . (3) Represents the prepayment fee and exit
Slide 25: Funds From Operations – Reconciliation of FFO Per Share
1Q 2023 SUPPLEMENTAL REPORT FOR THE THREE MONTHS ENDED MARCH 31, FFO/FAD attributable to common stockholders 27,200$ 23,611$ 30,085$ 25,118$ Non-recurring one-time items 262 (1) 423 (2) (1,570) (3) — FFO/FAD attributable to common stockholders excluding non-recurring items 27,462 24,034 28,515 25,11
Slide 26: ESG Accomplishments to Date
1Q 2023 SUPPLEMENTAL REPORT 26 ESG (ENVIRONMENTAL, SOCIAL & GOVERNANCE) ACCOMPLISHMENTS TO DATE ESG I The Board committed to an ESG Initiative Appointed Cornelia Cheng as new Board member Board established an ESG committee to oversee practices and performance Created and published an Environmental S
Slide 27: ESG Agenda
1Q 2023 SUPPLEMENTAL REPORT 27 ESG I ESG (ENVIRONMENTAL, SOCIAL & GOVERNANCE) 2023 2023 ESG Agenda ENVIRONMENT • Measure and report on energy and water usage, and waste management at LTC across select operator portfolios • Continue to build out our use of ClimateCheck®, which provides detailed clima
Slide 28: Definitions of Annualized Income Terms
1Q 2023 SUPPLEMENTAL REPORT Annualized Actual Cash Income : Represents annualized cash rental income includes cash rent and excludes real estate tax reimbursement, interest income from financing receivables, mortgage loans, mezzanine loans and working capital notes, and income from unconsolidated jo
Slide 29: Mezzanine Loan and Other Definitions
1Q 2023 SUPPLEMENTAL REPORT 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