LTC Properties, Inc.

Before management begins its presentation, please know that today's comments, including the questions and answer session, may include forward-looking statements subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in LTC properties filings with Securities and Exchange Commission from time to time, including the company's most recent 10-K, dated December 31st, 2022, LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. Please note this event is being recorded. I would now like to pass the conference over to Wendy.

Thank you, Operator, and welcome everyone to LTC's first quarter 2023 conference call.

I am joined by Pam Kessler, Co-President and Chief Financial Officer and Clint Malen, Co-President and Chief Investment Officer. So far in 2023, we have put nearly $180 million to work through new investments. We have already eclipsed last year's total, which before now was our strongest investment year since 2015. Additionally, we have generated $32 million in proceeds for property sales year to date. generating net gains of 15 million and reducing the average age of our portfolio. Going forward, while there are several opportunities we are reviewing, we are cognizant of current market conditions and are prioritizing judicious capital allocation and disciplined portfolio management to identify the most appropriate opportunities. We will continue to diversify our operator base and recycle capital. Our strategy for dispositions remains unchanged with focus on methodically divesting non-core assets and recycling capital at or around annual historical levels of 35 million to 40 million. This year, however, we may exceed that amount due to the anticipated sale of certain Brookdale portfolio properties toward the end of this year, which Clint will discuss later. Regarding industry reimbursement, We were happy to see the proposed CMS rule for fiscal 2024, which included a net market basket increase of 3.7% for SNFs beginning October 1st, 2023. At the same time, given the substantial challenges the skilled sector has been navigating through for more than three years, it's likely not enough to result in a much faster recovery. On the private pay side, we are seeing rate increases implemented without significant declines in occupancy. As expected, our FAD payout ratio, excluding non-recurring items, increased to 82% for the first quarter due to not having the benefit of the non-run rate items we discussed on last quarter's call. However, our long-term historical goal remains at 80%. We did not cut our dividend throughout the pandemic, and this quarter we again maintained our same monthly dividend payout of 19 cents a share. Our conservative philosophy has served us well through myriad real estate and financial cycles, and we do not plan to stray from that focus. Our guidance for the second quarter anticipates FFO excluding non-recurring items will be in the range of 63 to 64 cents per share. This guidance includes the assumption of decreased rent associated with an upcoming operator transition, as Pam will discuss shortly. It is no secret that our industry's recovery from the pandemic has been choppy and in some cases drawn out. And while certain operators have made progress on improving occupancy, increasing revenue, and reducing costs, others remain challenged. LTC's portfolio is not immune. While we cannot ignore market conditions and market volatility, I want to be very clear that I remain optimistic about LTC's long-term future and the future of our industry. Demographics are on our side as needs-based care continues to grow and the population continues to age and live longer. Although the recovery may continue to move slowly and the path to get there may not be linear, I am a firm believer that by using our collective experience, tenacity, and flexibility, we can emerge stronger and more resilient. Now I'll hand the call over to Pam.