LTC Reduces 2021 Rent Escalations
December 17 2020 - 9:30AM
Business Wire
LTC Properties, Inc. (NYSE: LTC), a real estate investment trust
that primarily invests in seniors housing and health care
properties, today announced it is reducing 2021 rent escalations by
50% in the form of a rent credit to provide financial support to
the majority of its operating partners during the ongoing
pandemic.
“Our operating partners have done a tremendous job of caring for
their residents and patients during the COVID-19 crisis,” said
Wendy Simpson, LTC’s Chairman and CEO. “After listening carefully
to their needs, and to give back to our industry, we are providing
partial relief from 2021 rent escalations so that our operating
partners have additional funds at a time during which they need
them most. This additional assistance will help our partners as
they continue to deliver outstanding and safe care to our nation’s
seniors.”
The one-time rent escalation reduction is expected to have an
approximate $560,000 impact on LTC’s 2021 first quarter GAAP
revenue, and an approximate $1.4 million, or $0.03 per diluted
share, impact on first quarter FAD (funds available for
distribution). Rent escalations occur in various months during the
year, but LTC is allowing its operating partners to apply the full
amount of the escalator reduction toward rent due in January to
assist with their cash needs.
“Since the beginning of the pandemic, our Board has discussed
various ways LTC could provide support to our operating partners,
while balancing its fiduciary responsibilities to shareholders.
While the Board is fully aware that FAD will be reduced as a result
of the aid we are providing, it unanimously supports the decision
as well as our focus on striving to replace the funds with
accretive transactions in 2021.”
“There is a light at the end of the tunnel, and we remain
hopeful that vaccines will be distributed quickly to those who need
it most,” continued Simpson. “We are grateful for the excellent
strides our industry has made in caring for those most vulnerable,
and will continue to do our part to support both our operators and
our industry.”
About LTC
LTC is a real estate investment trust (REIT) investing in
seniors housing and health care properties primarily through
sale-leasebacks, mortgage financing, joint-ventures and structured
finance solutions including preferred equity and mezzanine lending.
LTC holds 181 investments in 27 states with 29 operating partners.
The portfolio is comprised of approximately 50% seniors housing and
50% skilled nursing properties. Learn more 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20201217005155/en/
Wendy L. Simpson Pam Kessler (805) 981-8655
LTC Properties (NYSE:LTC)
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