LTC Properties Inc. (LTC) filed Quarterly Report for the period ended 2009-09-30.
LTC Properties Inc. a health care real estate investment trust invests primarily in long-term care and other health care related facilities through mortgage loans facility lease transactions and other investments. Their primary objectives are to sustain and enhance stockholder equity value and provide current income for distribution to stockholders through real estate investments in long-term care facilities and other health care related facilities managed by experienced operators providing quality care. Ltc Properties Inc. has a market cap of $562.5 million; its shares were traded at around $24.27 with and P/S ratio of 8.1. The dividend yield of Ltc Properties Inc. stocks is 6.4%. Ltc Properties Inc. had an annual average earning growth of 0.4% over the past 10 years.
Highlight of Business Operations:
As of September 30, 2009 we had $435.2 million in carrying value of net real estate investment, consisting of $363.7 million or 83.6% invested in owned and leased properties and $71.5 million or 16.4% invested in mortgage loans secured by first mortgages.
For the nine months ended September 30, 2009, rental income and interest income from mortgage loans represented 85.7% and 12.5%, respectively, of total gross revenues. In most instances, our lease structure contains fixed annual rental escalations, which are generally recognized on a straight-line basis over the minimum lease period. Certain leases have annual rental escalations that are contingent upon changes in the Consumer Price Index and/or changes in the gross operating revenues of the property. This revenue is not recognized until the appropriate contingencies have been resolved. This lease structure initially generates lower revenues and net income but enables us to generate additional growth and minimize non-cash straight-line rent over time. For the nine months ended September 30, 2009 and 2008, we recorded $3.2 million and $2.6 million, respectively, in straight-line rental income. Also during the nine months ended September 30, 2009, we recorded an additional $0.6 million of straight-line rent receivable reserve. Straight-line rental income on a same store basis will decrease from $4.2 million for projected annual 2009 to $2.8 million for projected annual 2010 assuming no modification or replacement of existing leases and no new leased investments with fixed annual rental escalations are added to our portfolio. Conversely, our cash rental income is projected to increase from $56.3 million for projected annual 2009 to $57.7 million for projected annual 2010 assuming no modification or replacement of existing leases and no new leased investments are added to our portfolio. During the nine months ended September 30, 2009, we received $42.2 million of cash rental revenue and recorded $0.5 million of lease inducement cost. At September 30, 2009 and December 31, 2008, the straight-line rent receivable balance, net of reserves, on the balance sheet was $16.5 million and $13.9 million, respectively.
· For investments in skilled nursing properties, we favor low cost per bed opportunities, whether in fee simple properties or in mortgages. The average per bed cost of our owned skilled nursing properties is approximately $33,400 per bed while that of properties subject to our mortgages is approximately $9,700 per bed.
At September 30, 2009, we had $5.1 million of cash on hand and $80.0 million available on our Unsecured Credit Agreement which matures July 17, 2011. Also, we entered into an equity distribution agreement with KeyBanc Capital Markets, Inc. (or KeyBanc) on August 5, 2009 to issue and sell, from time to time, up to $75.0 million in aggregate offering price of our common shares.
During the nine months ended September 30, 2009, we paid off three mortgage loans in the amount of $23.9 million secured by 11 assisted living properties located in various states. The retired debts bore a weighted average interest rate of 8.68%. As a result of these mortgage loans payoffs, we have a $7.7 million mortgage loan remaining secured by an assisted living property located in California. This mortgage loan is due in August 2010 but may be paid 90 days before maturity. Also, we have $4.2 million outstanding on multifamily tax-exempt revenue bonds secured by five assisted living properties located in Washington. These bonds bear interest at a variable interest rate and mature in 2015. The weighted average interest rate as of September 30, 3009, including letter of credit fees, was 2.24%.
Rate This Article: |
  |