LTC PROPERTIES INC [LTC] Filings

10-Q 1 ltc-20240630x10q.htm 10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from ____ to ____

Commission file number 1-11314

LTC PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)


Maryland				71-0720518
(State or other jurisdiction of				(I.R.S. Employer
incorporation or organization)				Identification No.)

3011 Townsgate Road, Suite 220

Westlake Village, California 91361

(Address of principal executive offices, including zip code)

(805) 981-8655

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $.01 par value	LTC	New York Stock Exchange

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☑	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

The number of shares of common stock outstanding on July 22, 2024 was 43,491,284.

Table of Contents

LTC PROPERTIES, INC.

FORM 10-Q

June 30, 2024

INDEX


PART I -- Financial Information		Page

Item 1.	Financial Statements
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	52
Item 4.	Controls and Procedures	52
PART II -- Other Information

Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 5.	Other Information	53
Item 6.	Exhibits	54

Table of Contents

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share)



	June 30, 2024		December 31, 2023
	(unaudited)		(audited)
ASSETS
Investments:
Land	$	119,141	$	121,725
Buildings and improvements		1,216,774		1,235,600
Accumulated depreciation and amortization		(390,863)		(387,751)
Operating real estate property, net		945,052		969,574
Properties held-for-sale, net of accumulated depreciation: 2024—$1,906; 2023—$3,616		4,248		18,391
Real property investments, net		949,300		987,965
Financing receivables, net of credit loss reserve: 2024—$3,615; 2023—$1,980		357,910		196,032
Mortgage loans receivable, net of credit loss reserve: 2024—$3,927; 2023—$4,814		389,448		477,266
Real estate investments, net		1,696,658		1,661,263
Notes receivable, net of credit loss reserve: 2024—$590; 2023—$611		58,405		60,490
Investments in unconsolidated joint ventures		30,504		19,340
Investments, net		1,785,567		1,741,093

Other assets:
Cash and cash equivalents		6,174		20,286
Debt issue costs related to revolving line of credit		1,621		1,557
Interest receivable		57,465		53,960
Straight-line rent receivable		18,706		19,626
Lease incentives		3,573		2,607
Prepaid expenses and other assets		17,610		15,969
Total assets	$	1,890,716	$	1,855,098
LIABILITIES
Revolving line of credit	$	281,750	$	302,250
Term loans, net of debt issue costs: 2024—$267; 2023—$342		99,733		99,658
Senior unsecured notes, net of debt issue costs: 2024—$1,138; 2023—$1,251		479,522		489,409
Accrued interest		4,997		3,865
Accrued expenses and other liabilities		41,957		43,649
Total liabilities		907,959		938,831
EQUITY
Stockholders’ equity:
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2024—43,491; 2023—43,022		435		430
Capital in excess of par value		1,005,468		991,656
Cumulative net income		1,677,986		1,634,395
Accumulated other comprehensive income		5,965		6,110
Cumulative distributions		(1,800,715)		(1,751,312)
Total LTC Properties, Inc. stockholders’ equity		889,139		881,279
Non-controlling interests		93,618		34,988
Total equity		982,757		916,267
Total liabilities and equity	$	1,890,716	$	1,855,098

See accompanying notes.

Table of Contents

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share, unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenues:
Rental income	$	31,657	$	31,537	$	65,206	$	63,272
Interest income from financing receivables		3,830		3,830		7,660		7,581
Interest income from mortgage loans		12,661		11,926		25,109		23,170
Interest and other income		1,968		953		3,507		3,723
Total revenues		50,116		48,246		101,482		97,746
Expenses:
Interest expense		10,903		11,312		21,948		21,921
Depreciation and amortization		9,024		9,376		18,119		18,586
Impairment loss		—		12,076		—		12,510
Provision for credit losses		703		187		727		1,918
Transaction costs		380		91		646		208
Property tax expense		3,247		3,187		6,630		6,480
General and administrative expenses		6,760		6,091		13,251		12,385
Total expenses		31,017		42,320		61,321		74,008
Other operating income:
(Loss) gain on sale of real estate, net		(32)		302		3,219		15,675
Operating income		19,067		6,228		43,380		39,413
Income from unconsolidated joint ventures		671		376		1,047		752
Net income		19,738		6,604		44,427		40,165
Income allocated to non-controlling interests		(377)		(430)		(836)		(857)
Net income attributable to LTC Properties, Inc.		19,361		6,174		43,591		39,308
Income allocated to participating securities		(173)		(146)		(338)		(293)
Net income available to common stockholders	$	19,188	$	6,028	$	43,253	$	39,015

Earnings per common share:
Basic	$	0.44	$	0.15	$	1.01	$	0.95
Diluted	$	0.44	$	0.15	$	1.00	$	0.95

Weighted average shares used to calculate earnings per common share:
Basic		43,171		41,145		43,030		41,113
Diluted		43,463		41,232		43,322		41,200

Dividends declared and paid per common share	$	0.57	$	0.57	$	1.14	$	1.14

See accompanying notes.

Table of Contents

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(amounts in thousands, unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income	$	19,738	$	6,604	$	44,427	$	40,165
Unrealized gain on cash flow hedges before reclassification		532		2,146		1,945		1,596
Gains reclassified from accumulated other comprehensive income to interest expense		(1,055)		(935)		(2,090)		(1,747)
Comprehensive income		19,215		7,815		44,282		40,014
Less: Comprehensive income allocated to non-controlling interests		(377)		(430)		(836)		(857)
Comprehensive income attributable to LTC Properties, Inc.	$	18,838	$	7,385	$	43,446	$	39,157

Table of Contents

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)


					Capital in		Cumulative						Total		Non-
	Common Stock				Excess of		Net		Accumulated		Cumulative		Stockholder's		Controlling		Total
	Shares		Amount		Par Value		Income		OCI		Distributions		Equity		Interests		Equity
Balance—December 31, 2022	41,262	$	412	$	931,124	$	1,544,660	$	8,719	$	(1,656,548)	$	828,367	$	21,940	$	850,307
Issuance of common stock	48		—		1,697		—		—		—		1,697		—		1,697
Issuance of restricted stock	128		1		(1)		—		—		—		—		—		—
Common Stock cash distributions ($0.57 per share)	—		—		—		—		—		(23,563)		(23,563)		—		(23,563)
Stock-based compensation expense	—		—		2,088		—		—		—		2,088		—		2,088
Net income	—		—		—		33,134		—		—		33,134		427		33,561
Cash paid for taxes in lieu of common shares	(41)		—		(1,538)		—		—		—		(1,538)		—		(1,538)
Non-controlling interest contributions	—		—		—		—		—		—		—		3,831		3,831
Non-controlling interest distributions	—		—		—		—		—		—		—		(406)		(406)
Fair market valuation adjustment for interest rate swap	—		—		—		—		(1,362)		—		(1,362)		—		(1,362)
Other	(1)		—		—		—		—		—		—		—		—
Balance—March 31, 2023	41,396	$	413	$	933,370	$	1,577,794	$	7,357	$	(1,680,111)	$	838,823	$	25,792	$	864,615
Issuance of restricted stock	15		—		—		—		—		—		—		—		—
Common Stock cash distributions ($0.57 per share)	—		—		—		—		—		(23,599)		(23,599)		—		(23,599)
Stock-based compensation expense	—		—		2,138		—		—		—		2,138		—		2,138
Net income	—		—		—		6,174		—		—		6,174		430		6,604
Cash paid for taxes in lieu of common shares	(2)		—		(81)		—		—		—		(81)		—		(81)
Non-controlling interest contributions	—		—		—		—		—		—		—		9,133		9,133
Non-controlling interest distributions	—		—		—		—		—		—		—		(406)		(406)
Fair market valuation adjustment for interest rate swap	—		—		—		—		1,211		—		1,211		—		1,211
Balance—June 30, 2023	41,409	$	413	$	935,427	$	1,583,968	$	8,568	$	(1,703,710)	$	824,666	$	34,949	$	859,615

Balance—December 31, 2023	43,022	$	430	$	991,656	$	1,634,395	$	6,110	$	(1,751,312)	$	881,279	$	34,988	$	916,267
Issuance of common stock	139		1		4,336		—		—		—		4,337		—		4,337
Issuance of restricted stock	160

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10-K	[2016-02-22]
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