In This Article:
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Net Income: Decreased by $10.1 million due to a decrease in gain on sale, increase in impairment losses, and higher G&A expenses.
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FFO (Funds From Operations): Improved by $2.1 million, primarily due to lower interest expense and rent increases.
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FFO per Share: $0.72 compared to $0.57 last year.
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Core FFO per Share: $0.65 in Q4 2024 compared to $0.66 in Q4 2023.
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Mortgage Loan Payoff: Received $51.1 million payoff secured by a senior housing community.
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Property Sale: Sold a closed property in Colorado for $5.3 million, recording a $1.1 million gain.
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Liquidity: Total liquidity of approximately $680 million at the end of Q4 2024.
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Debt to EBITDA: Reduced to 4.3 times from 4.7 times in the previous quarter.
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Fixed Charge Coverage Ratio: Increased to 4.7 times from 4.2 times in the previous quarter.
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First Quarter 2025 Guidance for Core FFO: Between $0.64 and $0.65 per share.
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Pipeline Value: Approximately $100 million, including potential RIDEA transactions.
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Occupancy Increase: Prestige portfolio occupancy increased by 740 basis points year-over-year.
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Rent from Market-Based Rent Resets: $3.7 million in 2024, expected to increase to $4.8 million in 2025.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LTC Properties Inc (NYSE:LTC) is actively implementing a RIDEA structure, which is expected to be transformative and unlock long-term growth potential.
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The company has reduced its leverage and maintained well-staggered debt maturities, aligning them with projected cash flows.
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LTC Properties Inc (NYSE:LTC) has a strong liquidity position, with approximately $680 million available, up from $229 million at the end of September 2024.
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The company has successfully increased its FFO excluding non-recurring items by $2.1 million, driven by lower interest expenses and rent increases.
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LTC Properties Inc (NYSE:LTC) is in a strong position for accretive growth, with a pipeline valued at approximately $100 million, including potential RIDEA transactions.
Negative Points
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Net income available to common shareholders decreased by $10.1 million, primarily due to a decrease in gain on sale, an increase in impairment losses, and higher G&A expenses.
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Core FFO per share slightly decreased to $0.65 in the fourth quarter of 2024 compared to $0.66 in the same period of 2023.
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The company is facing challenges with a tenant who has decided not to renew their lease, requiring strategic capital recycling.
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LTC Properties Inc (NYSE:LTC) has a significant portion of its portfolio (50%) on a cash basis, which may pose risks if operational performance does not sustain.
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The transition to RIDEA involves significant one-time expenses related to setting up the platform, which could impact short-term financial performance.