LTC Properties Inc. (NYSE:LTC) Q3 2018 Earnings Conference Call Transcript

Nov 06, 2018 • 11:00 am ET

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LTC Properties Inc. (NYSE:LTC) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to LTC's 2018 Third Quarter Investor Call. All participants will be in 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. I would now like to turn the conference over to Wendy Simpson, Chairman, CEO and President. Please go ahead.

Executive
Wendy Simpson

Thank you, operator. Welcome, everybody.

Joining me today are Pam Kessler, our CFO; and Clint Malin, our Chief Investment Officer. As always, I will begin the call with some introductory remarks, Pam will follow with a discussion of our financial results and Clint will provide commentary on our portfolio. Recent activity and operator performance. I will finish with a brief wrap-up before we begin the questions and answers.

We are executing on a steady path, working closely with existing and prospective operators to offer flexible, innovative financing solutions, while continually evaluating and strengthening our portfolio. Most recently, we made two investments and sold three properties, two of which were sold during the quarter and one just after. These transactions represent a recycling of capital to optimize our portfolio for long-term and sustainable growth.

We are continuing to selectively and strategically identify a few assets within our portfolio for sale, where we believe we can mitigate risk and recycle the capital into better opportunities in the future. To be clear, we are focused on making decisions that will positively impact LTC for years to come.As I've said before, because it remains true and is core to who we are, LTC has both the fortitude and the ability to wait until we find the right deal, one that is strategic for our shareholders and for our partners.

However, you should not mistake our patience for inactivity. We have been proactive in managing our existing assets, focusing on building relationships to help source future off-market deals and expanding the innovative financing structures we offer to attract new regional operating partners, who are excited to have a capital provider who can and will bring multiple financing solutions to the table.

Now I will provide a brief update on two of our current operators, starting with Anthem. We are in regular contact with Anthem to ensure they are meeting their 2018 goals. They continue to pay rent in line with our expectations and are showing progress. We are currently reviewing budgets with them and are in the process of setting increased rent expectations for 2019.

From an occupancy standpoint, Anthem's Murrieta community is holding steady at around 89%. Burr Ridge and Glenview are seeing solid gains with occupancies at 77% and 64%, respectively. Tinley Park's occupancy is down slightly, while Oak Lawn, which began admitting residents in late May, is 30% occupied as lease-up activities continue. We will continue to closely monitor Anthem's progress.

Moving now to Thrive. Total occupancy at the Thrive properties has remained relatively flat since our last call, and Thrive has exhausted the $1.4 million of deferred rent we announced last quarter.