LTC Properties, Inc. (NYSE: LTC), a real estate investment trust
that primarily invests in seniors housing and health care
properties, today announced operating results for its first quarter
ended March 31, 2017.
Net income available to common stockholders was
$21.4 million, or $0.54 per diluted share, for the 2017 first
quarter compared with $19.8 million, or $0.53 per diluted share,
for the same period in 2016. Funds from Operations (“FFO”)
increased 8.7% to $30.8 million for the 2017 first quarter, up
from $28.3 million for the comparable 2016 period. FFO per
diluted common share was $0.78 and $0.76 for the quarters ended
March 31, 2017 and 2016, respectively. The increase in
net income available to common stockholders per share and FFO per
share was primarily due to higher revenues from prior year
acquisitions, mortgage loan originations and completed development
projects, partially offset by higher interest expense resulting
from the sale of senior unsecured notes in May and July of 2016 and
February 2017, the issuance of shares and lower capitalized
interest from development projects, as well as additional general
and administrative expenditures related to performance-based equity
awards.
As previously announced, LTC completed the following during the
first quarter of 2017:
- Amended its shelf agreement with
affiliates and managed accounts of Prudential Investment
Management, Inc. (or Prudential) to increase its shelf
commitment to $337.5 million;
- Sold 15-year senior unsecured notes in
the aggregate amount of $100.0 million to a group of institutional
investors, which included Prudential, in a private placement
transaction. The notes bear interest at an annual fixed rate of
4.5%, have scheduled principal payments and mature on February 16,
2032. The proceeds were used to repay the outstanding balance of
the unsecured line of credit; and
- Sold 312,881 shares of common stock for
$14.6 million in net proceeds under its equity distribution
agreement. The proceeds were used to repay the outstanding balance
of the unsecured line of credit.
Conference Call
Information
LTC will conduct a conference call on Tuesday, May 9, 2017, at
8:00 a.m. Pacific Time (11:00 a.m. Eastern Time), to provide
commentary on its performance and operating results for the quarter
ended March 31, 2017. The conference call is accessible
by telephone and the internet. Telephone access will be available
by dialing 877-510-2862 (domestically) or 412-902-4134
(internationally). To participate in the webcast, go to LTC’s
website at www.LTCreit.com 15 minutes before the call to download
the necessary software.
An audio replay of the conference call will be available from
May 9 through May 23, 2017 and may be accessed by dialing
877-344-7529 (domestically) or 412-317-0088 (internationally) and
entering conference number 10104953. Additionally, an audio archive
will be available on LTC’s website on the “Presentations” page of
the “Investor Information” section, which is under the “Investors”
tab. LTC’s earnings release and supplemental information package
for the current period will be available on its website on the
“Press Releases” and “Presentations” pages, respectively, of the
“Investor Information” section which is under the “Investors”
tab.
About LTC
LTC is a self-administered real estate investment trust that
primarily invests in seniors housing and health care properties
primarily through sale-leaseback transactions, mortgage financing
and structured finance solutions including mezzanine lending. At
March 31, 2017, LTC had 210 investments located in 29
states comprising 105 assisted living communities, 97 skilled
nursing centers, 1 behavioral health care hospital, 3 parcels of
land under development and 4 parcels of land held-for-use. Assisted
living communities, independent living communities, memory care
communities and combinations thereof are included in the assisted
living property type. For more information on LTC Properties, Inc.,
visit the Company’s website at www.LTCreit.com.
Forward Looking
Statements
This press release includes statements that are not purely
historical and are “forward looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding the Company’s expectations, beliefs,
intentions or strategies regarding the future. All statements other
than historical facts contained in this press release are forward
looking statements. These forward looking statements involve a
number of risks and uncertainties. Please see LTC’s most recent
Annual Report on Form 10-K, its subsequent Quarterly Reports on
Form 10-Q, and its other publicly available filings with the
Securities and Exchange Commission for a discussion of these and
other risks and uncertainties. All forward looking statements
included in this press release are based on information available
to the Company on the date hereof, and LTC assumes no obligation to
update such forward looking statements. Although the Company’s
management believes that the assumptions and expectations reflected
in such forward looking statements are reasonable, no assurance can
be given that such expectations will prove to have been correct.
The actual results achieved by the Company may differ materially
from any forward looking statements due to the risks and
uncertainties of such statements.
LTC PROPERTIES, INC. CONSOLIDATED
STATEMENTS OF INCOME
(amounts in thousands, except per share
amounts)
Three Months Ended March 31, 2017 2016
(unaudited) Revenues: Rental income $ 35,035 $ 31,880 Interest
income from mortgage loans 6,748 6,578 Interest and other income
839 146 Total revenues 42,622
38,604 Expenses: Interest expense 7,471
6,000 Depreciation and amortization 9,359 8,561 (Recovery)
provision for doubtful accounts (38 ) 84 Transaction costs 22 90
General and administrative expenses 4,740
4,283 Total expenses 21,554 19,018
Operating income 21,068 19,586 Income from
unconsolidated joint ventures 445 272
Net income 21,513 19,858 Income allocated to participating
securities (97 ) (101 ) Net income available to
common stockholders $ 21,416 $ 19,757
Earnings per common share: Basic $ 0.54 $ 0.53
Diluted $ 0.54 $ 0.53
Weighted average
shares used to calculate earnings per common share:
Basic 39,366 37,446 Diluted
39,612 37,459 Dividends declared and
paid per common share $ 0.57 $ 0.54
Supplemental Reporting
Measures
FFO, adjusted FFO (“AFFO”), and Funds Available for Distribution
(“FAD”) are supplemental measures of a real estate investment
trust’s (“REIT”) financial performance that are not defined by U.S.
generally accepted accounting principles (“GAAP”). Investors,
analysts and the Company use FFO, AFFO and FAD as supplemental
measures of operating performance. The Company believes FFO, AFFO
and FAD are helpful in evaluating the operating performance of a
REIT. Real estate values historically rise and fall with market
conditions, but cost accounting for real estate assets in
accordance with GAAP assumes that the value of real estate assets
diminishes predictably over time. We believe that by excluding the
effect of historical cost depreciation, which may be of limited
relevance in evaluating current performance, FFO, AFFO and FAD
facilitate like comparisons of operating performance between
periods. Additionally the Company believes that FFO, AFFO and FAD
provide useful information because they allow investors, analysts
and our management to compare the Company’s operating performance
on a consistent basis without having to account for differences
caused by unanticipated items.
FFO, as defined by the National Association of Real Estate
Investment Trusts (“NAREIT”), means net income available to common
stockholders (computed in accordance with GAAP) excluding gains or
losses on the sale of real estate and impairment write-downs of
depreciable real estate, plus real estate depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. The Company’s computation of FFO may not be
comparable to FFO reported by other REITs that do not define the
term in accordance with the current NAREIT definition or have a
different interpretation of the current NAREIT definition from that
of the Company; therefore, caution should be exercised when
comparing our Company’s FFO to that of other REITs.
We define AFFO as FFO excluding the effects of straight-line
rent, amortization of lease inducement, effective interest income
and deferred income from unconsolidated joint ventures. GAAP
requires rental revenues related to non-contingent leases that
contain specified rental increases over the life of the lease to be
recognized evenly over the life of the lease. This method results
in rental income in the early years of a lease that is higher than
actual cash received, creating a straight-line rent receivable
asset included in our consolidated balance sheet. At some point
during the lease, depending on its terms, cash rent payments exceed
the straight-line rent which results in the straight-line rent
receivable asset decreasing to zero over the remainder of the lease
term. Effective interest method, as required by GAAP, is a
technique for calculating the actual interest rate for the term of
a mortgage loan based on the initial origination value. Similar to
the accounting methodology of straight-line rent, the actual
interest rate is higher than the stated interest rate in the early
years of the mortgage loan thus creating an effective interest
receivable asset included in the interest receivable line item in
our consolidated balance sheet and reduces down to zero when, at
some point during the mortgage loan, the stated interest rate is
higher than the actual interest rate. By excluding the non-cash
portion of rental income, interest income from mortgage loans and
income from unconsolidated joint ventures, investors, analysts and
our management can compare AFFO between periods.
We define FAD as AFFO excluding the effects of non-cash
compensation charges, capitalized interest and non-cash interest
charges. FAD is useful in analyzing the portion of cash flow that
is available for distribution to stockholders. Investors, analysts
and the Company utilize FAD as an indicator of common dividend
potential. The FAD payout ratio, which represents annual
distributions to common shareholders expressed as a percentage of
FAD, facilitates the comparison of dividend coverage between
REITs.
While the Company uses FFO, AFFO, and FAD as supplemental
performance measures of our cash flow generated by operations and
cash available for distribution to stockholders, such measures are
not representative of cash generated from operating activities in
accordance with GAAP, and are not necessarily indicative of cash
available to fund cash needs and should not be considered an
alternative to net income available to common stockholders.
Reconciliation of FFO, AFFO and
FAD
The following table reconciles GAAP net income available to
common stockholders to each of NAREIT FFO attributable to common
stockholders, as well as AFFO and FAD (unaudited, amounts in
thousands, except per share amounts):
Three Months Ended March
31, 2017 2016 GAAP net
income available to common stockholders $ 21,416 $ 19,757 Add:
Depreciation and amortization 9,359 8,561
NAREIT FFO attributable to common stockholders 30,775 28,318
Less: Non-cash rental income (2,340 ) (2,317 ) Less:
Effective interest income from mortgage loans (1,307 ) (1,262 )
Less: Deferred income from unconsolidated joint ventures (47
) — Adjusted FFO (AFFO) 27,081 24,739 Add:
Non-cash compensation charges 1,259 990 Add: Non-cash interest
related to earn-out liabilities 226 149 Less: Capitalized interest
(170 ) (686 ) Funds available for distribution (FAD)
$ 28,396 $ 25,192
NAREIT Basic FFO attributable to common stockholders per
share $ 0.78 $ 0.76 NAREIT Diluted FFO attributable
to common stockholders per share $ 0.78 $ 0.76
NAREIT Diluted FFO attributable to common stockholders $ 30,872
$ 28,419 Weighted average shares used to calculate
NAREIT diluted FFO per share attributable to common stockholders
39,612 37,640
Diluted AFFO $ 27,178 $ 24,840
Weighted average shares used to calculate diluted AFFO per share
39,612 37,640
Diluted FAD $ 28,493 $ 25,293
Weighted average shares used to calculate diluted FAD per share
39,612 37,640
LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except per
share)
March 31, 2017 December 31, 2016
ASSETS Investments:
Land $ 115,793 $ 116,096 Buildings and improvements 1,187,897
1,185,467 Accumulated depreciation and amortization (284,134
) (275,861 ) Operating real estate property, net 1,019,556
1,025,702 Properties held-for-sale, net of accumulated
depreciation: 2017—$1,058; 2016—$0 1,170 —
Real property investments, net 1,020,726 1,025,702 Mortgage
loans receivable, net of loan loss reserve: 2017—$2,249;
2016—$2,315 223,292 229,801 Real estate
investments, net 1,244,018 1,255,503 Notes receivable, net of loan
loss reserve: 2017—$166; 2016—$166 16,402 16,427 Investments in
unconsolidated joint ventures 26,181 25,221
Investments, net 1,286,601 1,297,151 Other assets:
Cash and cash equivalents 8,732 7,991 Debt issue costs related to
bank borrowings 1,584 1,847 Interest receivable 10,868 9,683
Straight-line rent receivable, net of allowance for doubtful
accounts: 2017—$988; 2016—$960 58,115 55,276 Prepaid expenses and
other assets 25,690 22,948 Total assets
$ 1,391,590 $ 1,394,896
LIABILITIES
Bank borrowings $ — $ 107,100 Senior unsecured notes, net of debt
issue costs: 2017—$1,260; 2016—$1,009 597,873 502,291 Accrued
interest 4,259 4,675 Accrued incentives and earn-outs 12,015 12,229
Accrued expenses and other liabilities 24,303
28,553 Total liabilities 638,450 654,848
EQUITY Stockholders’ equity: Common stock: $0.01 par value;
60,000 shares authorized; shares issued and outstanding:
2017—39,573; 2016—39,221 396 392 Capital in excess of par value
853,132 839,005 Cumulative net income 1,034,956 1,013,443
Cumulative distributions (1,135,344 ) (1,112,792 )
Total equity 753,140 740,048 Total
liabilities and equity $ 1,391,590 $ 1,394,896
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170508006002/en/
LTC Properties, Inc.Wendy L. SimpsonPam Kessler(805)
981-8655
LTC Properties (NYSE:LTC)
Historical Stock Chart
From Feb 2024 to Mar 2024
LTC Properties (NYSE:LTC)
Historical Stock Chart
From Mar 2023 to Mar 2024