LTC Properties, Inc.

Good day, ladies and gentlemen, and welcome to the LTC Properties Incorporated third quarter 2024 earnings conference call. My name is Ali, and I will be your operator for today's call. At this time, all participants are in a listen-only mode, and later we will conduct a question and answer session. During the question and answer session, if you have a question, please press star 1 on your touchtone phone. Before management begins its presentation, please note that today's comments, including the question 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 the Securities and Exchange Commission from time to time, including the company's most recent 10K, dated December 31st, 2023. 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 turn the conference over to Wendy Simpson. Ma'am? You may begin.

Thank you, Operator, and welcome everyone to LTC's 2024 Third Quarter Conference Call. On the call with me today are Pam Kessler, Co-President and Chief Financial Officer, and Clint Malen, Co-President and Chief Investment Officer. The third quarter and fourth quarter to date have been positive to LTC, and we are optimistic about the year and 2025. Year to date, we have collected 4.1 million in previously unrecorded revenue from former operators related to portfolio transitions in prior years. And we have received more than 98 million related to loan receivable payoffs and paydowns. Additionally, we received net proceeds of nearly 63 million from equity sales under our ATM program. As a result, we have substantially delevered our balance sheet, better positioning LTC to capitalize on new investment opportunities. When thinking about growth opportunities ahead, and with the full support of our board, we are actively evaluating RIDEA. We are currently reviewing several strategic approaches, as well as analyzing the infrastructure needed to successfully execute on this structure. Clint will provide more detail later. Before I turn the call over, I want to recognize the heroic efforts taken by our operators who are located in areas impacted by the recent hurricanes. They and their employees met the challenge to ensure residents and patients continue to receive the high-level care they need and expect. We've heard stories of great courage throughout the regions. and LTC extends its sympathies and support to everyone who has been and still is affected. Now I'll hand things over to Pam.

Thank you, Wendy. Please note that all numbers I discussed today are for the third quarter of 2024 compared with the same period in 2023 unless otherwise noted. You can find additional details about our financial results in our earnings press release, supplemental, and Form 10-Q. Net income available to common shareholders increased by 7.1 million, primarily due to one-time income from former operators related to portfolio transitions in prior years. A decline in interest expense resulting from our deleveraging activities and increases in rent and income from unconsolidated joint ventures. Fully diluted FFO per share was 78 cents compared with 65 cents last year. Excluding non-recurring items, FFO per share was 68 cents versus 65 cents. For a recap of third quarter activity, some of which was discussed on last quarter's call, we committed to fund a 26.1 million mortgage loan, which should begin early in 2025. Recorded a 3.6 million gain on sale related to an assisted living community in Texas and received 441,000 in contractual rent through the remainder of the lease term, which would have expired in January 2025. Received a total of 39.7 million related to the path of a 29.3 million mortgage loan secured by a skilled nursing center in Louisiana, as well as the 10.4 million pay down on a working capital note. Recorded 4.1 million of income from former operators related to portfolio transitions in prior years. Sold 1,543,100 shares under our ATM program for net proceeds of 54.7 million. exercise the accordion feature under our credit agreement to increase our revolving line of credit by 25 million, repaid 41.6 million under our unsecured revolving line of credit, and 34.2 million in scheduled principal paydowns on our senior unsecured notes, and paid 25.3 million in monthly common dividends of 19 cents per share. Subsequent to the end of the quarter, we received $51.4 million from the payoff of a mortgage loan secured by a senior housing community in Georgia, sold a closed property in Colorado for $5.3 million, for which we anticipate recording a gain on sale of approximately $1.1 million in the fourth quarter, sold 226,370 shares under our ATM program for $7.9 million in net proceeds, and repaid 93.8 million under our revolving line of credit. Subsequent to September 30th, our total liquidity was approximately 286 million, up 51% from the prior quarter. Accordingly, we have 5.4 million of cash on hand, 279 million available on our line of credit, and 1.5 million available under our ATM, which we are in the process of renewing and expanding. Our conservative balance sheet management allows us to take advantage of new investment opportunities as they arise. As a result of successfully deleveraging our balance sheet, our pro forma debt to annualize adjusted EBITDA for real estate is down to 4.2 times from 5.3 times for the second quarter. And our pro forma annualized adjusted fixed charge coverage ratio is up to 4.8 times from 3.7 times for the second quarter. Our fourth quarter guidance for FFO, excluding one currently known non-recurring item, is between $0.65 and $0.66 per share. The $0.02 decrease from the third quarter is the result of the mortgage loan payoff, as we have yet to redeploy that capital. The non-recurring item for the fourth quarter relates to provision for credit losses recovery of approximately $510,000 due to a mortgage loan receivable payoff in the fourth quarter. Our full year guidance for FFO excluding non-recurring items remains $2.63 to $2.65 per share. Non-recurring items for the full year include the non-recurring items recognized to date as detailed in our earnings release, as well as the provision for credit loss recovery I just mentioned. Our guidance assumes no additional investment activity, asset sales, financing, or equity issuances. Now I'll turn the call over to Clint for our portfolio review.