LTC Properties Inc. (NYSE:LTC) Q2 2019 Earnings Conference Call - Final Transcript
Aug 09, 2019 • 11:00 am ET
Good day, and welcome to the LTC Properties Second Quarter 2019 Analyst and Investor Conference Call. [Operator Instructions] 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, 2018. LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. Please note that this event is being recorded.
I would now like to turn the conference over to Ms. Wendy Simpson, Chief Executive Officer. Please go ahead.
Wendy L. Simpson
Thank you, operator, and welcome everyone to LTC's 2019's second quarter conference call. Joining me today are Pam Kessler, our CFO; and Clint Malin, our Chief Investment Officer. After a few introductory remarks, I'll turn the call over to Pam who will discuss our financial results, then to Clint, who will discuss our portfolio, operator performance and the pipeline. I'll come back to conclude our prepared remarks before the question-and-answer session. LTC has made significant progress in resolving the challenges we've discussed. We are confident that at the end of the year, the challenges under our control will be behind us, putting LTC in a great position to devote more focus on future growth from a base of a strengthened portfolio.
I'll provide brief updates on Senior Care Centers, Thrive, Anthem and Preferred Care. I'll end my comments with guidance. I'll start with Senior Care Centers, which is the one issue over which we have the most limited control, as they continue to work through the bankruptcy process. Senior Care Centers recently filed the motion to assume the LTC lease. And we filed an objection shortly thereafter. In the interim, Senior Care Centers remains current on their 2019 rent and escrow amounts. Coverage in the Senior Care portfolio was essentially flat on a quarter-over-quarter, trailing 12-month basis.
Moving to Thrive. The entire portfolio has been successfully transitioned. As previously disclosed, we transitioned 3 of the 6 properties on June 1, and completed the transition of 2 additional properties on July 1. The final property has been transferred August 1, and Clint will talk more about this transition later. Now at Anthem. Their operations continue to improve, and they are meeting our increased rent expectations as reflected in our 2019 guidance. As we have said before, we cannot appropriately establish formalized contractual rent levels associated with the Anthem portfolio going forward until we can realistically calculate rent once all of the properties have been stabilized for a period of time. As a result, it will likely be late next year before we have greater visibility on future stabilized rents.
I'll finish my portfolio discussion with Preferred Care, which operates 23 properties for us. As discussed last quarter, we have been working to