Sun. Nov 17th, 2019

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Notable Stock to Watch: LTC Properties, Inc. (NYSE: LTC)

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LTC Properties, Inc. (NYSE: LTC), a real estate investment trust that mainly invests in seniors housing and health care properties, newly stated operating results for its 3rd-quarter finished September 30, 2k19.

Net income available to common stockholders was $27.10M, or $0.680 for each diluted share, for the 2k19 3rd-quarter, contrast with $34.80M, or $0.880 for each diluted share, for the similar duration in 2k18.

Funds from Operations (“FFO”) was $30.80M for the 2k19 3rd-quarter, contrast with $29.90M for the comparable 2k18 duration. FFO for each diluted common share was $0.770 and $0.750 for the quarters finished September 30, 2k19 and 2k18, respectively.

LTC accomplished the following transactions throughout the 3rd-quarter of 2k19:

  • Attained a newly constructed, 90-bed skilled nursing center located in Missouri for $19.50M, and reached a 12-year lease agreement with an operator new to LTC’s portfolio at an initial cash yield of 8.250 percent escalating by 2.00 percent in December 2k19 and annually thereafter. In Addition To, LTC attained a parcel of land and committed $17.40M (counting land purchase) to develop a 90-bed skilled nursing center in Missouri with the similar operator, and reached a separate 12-year lease agreement at an initial cash yield of 9.250 percent effective upon completion of development, certificate of occupancy and licensure;
  • Accomplished the transition of two memory care communities in Georgia and South Carolina with a total of 159 units from Thrive to an existing operator. The new two-year lease has an initial cash rent of $1.80M. The lease provides the lessee one-month free rent and the option to defer up to 50.00 percent of contractual rent for the next five months. The rent inclines 3.50 percent in year two;
  • Accomplished the transition of the Company’s remaining Thrive property, a 60-unit memory care community located in Florida, to an existing operator. The new 10-year lease provides the lessee twelve months free rent with rent increasing to $450,000.00 in year two and $600,000.00 in year three and thereafter. In year two, the lessee has the option to defer rent in an amount not to exceed $150,000.00. Rent may incline subject to a contingent escalation formula commencing in year three and annually thereafter; and
  • Sold a 148-bed skilled nursing center in Georgia for $7.90M, recognizing a net gain on sale of $6.20M. LTC received $7.80M in net proceeds which were used to pay down the Company’s line of credit. This property was leased under a master lease and rent under the master lease was not reduced as a result of this sale.

Subsequent to September 30, 2k19, LTC accomplished the following:

  • Sold senior unsecured notes in the aggregate amount of $100.00M to associates and managed accounts of PGIM, Inc. The notes bear interest at 3.850 percent, have planned principal payments and mature on October 20, 2k31. The proceeds of the notes were used to pay down the Company’s line of credit.

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