LTC Properties (LTC) Tops Q1 EPS by $1.08, Revenues Beat

LTC Properties (NYSE: LTC) reported Q1 EPS of $1.60, $1.08 better than the analyst estimate of $0.52. Revenue for the quarter came in at $38.04 million versus the consensus estimate of $37.66 million.

• Net income available to common stockholders was $63.4 million, or $1.60 per diluted share, for the 2020 first quarter, compared with $20.3 million, or $0.51 per diluted share, for the same period in 2019.
• The improvement was primarily due to a $43.9 million net gain on sale of properties and higher rental and interest income in the 2020 first quarter, partially offset by lower income from investment in unconsolidated joint ventures and higher general and administrative expenses.

LTC completed the following transactions during the first quarter of 2020:

• Acquired a 140-bed skilled nursing center in Longview, Texas for approximately $13.5 million, and entered into a 10-year master lease with an initial cash yield of 8.5% escalating 2% annually with two, five-year renewal options;
• Completed the sale of its Preferred Care, Inc. portfolio with the sale of 21 skilled nursing centers, as previously announced. These properties included 2,411 beds in Arizona, Colorado, Iowa, Kansas and Texas, generated net proceeds of $71.9 million, had a combined net book value of $29.1 million and resulted in gain on sale of approximately $43.9 million;
• Completed construction of a 78-unit seniors housing community in Oregon; and
• Purchased 615,827 shares of its common stock at an average price of $29.25 per share, including commissions, for a total investment of approximately $18.0 million under the stock repurchase plan which was approved by LTC’s Board of Directors on March 12, 2020. In order to preserve liquidity and financial flexibility in light of impact of the national COVID-19 pandemic, LTC’s Board of Directors made the strategic decision to terminate the stock repurchase plan on March 25, 2020.

Subsequent to March 31, 2020, LTC completed the following:

• Received liquidation proceeds of $17.2 from the sale of properties in an unconsolidated joint venture. LTC anticipates receiving additional proceeds of $1.3 million and expects to recognize a loss on liquidation of unconsolidated joint ventures of approximately $0.6 million in the second quarter of 2020 related to the dissolution of this joint venture.

For earnings history and earnings-related data on LTC Properties (LTC) click here.

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