LTC Properties Inc. (NYSE:LTC) Q4 2017 Earnings Conference Call Transcript

Mar 02, 2018 • 11:00 am ET

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LTC Properties Inc. (NYSE:LTC) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the LTC Properties Fourth Quarter 2017 Analyst and Investor Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). Please note, this event is being recorded.

Before Management begins its presentation, please know 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 10-K dated December 31, 2017. LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation.

I would now like to turn the conference over to Wendy Simpson. Please go ahead.

Executive
Wendy L. Simpson

Thank you, operator and welcome everybody to LTC's 2017 fourth quarter and year-end investor call. Joining me today are Pam Kessler, our CFO; and Clint Malin, our Chief Investment Officer. I'll begin with a few thoughts including an update on Anthem and our 2018 guidance. Pam will follow with a discussion of our financial results. And Clint will provide commentary on our portfolio investment activity, pipeline and operator partner performance. I'll finish with a quick summary before we begin the questions-and-answers.

LTC has successfully managed through several real estate cycles and no matter the environment, I firmly believe that our focus on flexibility and financing structure creativity has allowed us to meet the evolving needs of our partners, while continuing to drive long-term value through a culture of trust, transparency and shared success.

New investment activity was $49 million in the quarter with the acquisition of an assisted living and memory care community in Missouri, which Clint detailed on our last call, and two new real estate joint venture agreements, one for the development of an assisted living, memory care and independent living community in Wisconsin and the other for the acquisition of an assisted living and memory care community in South Carolina. Both investments were with regional operators new to our portfolio. In fact, through our business development efforts, we added three new operators to our portfolio during 2017 adding greater diversification.

During and subsequent to the end of the quarter, we sold one property, donated a skilled nursing center in Texas, completed the development of a new private pay memory care community in Illinois and entered into an agreement to sell our Sunrise portfolio. As Clint mentioned during our previous earnings call, we engaged investment bankers to run a process to sell or re-lease these assets.

The process was highly competitive, resulting in multiple lease and sales options, with KeyBanc Capital Markets leading the sales process and CS Capital Advisors leading the re-leasing initiative. We are very pleased with the collaborative process led by Key and CSCA, resulting in the executed sales contract. As always, Clint will provide color later regarding asset sales.