LTC Properties Inc. (NYSE:LTC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 01, 2019 • 11:00 am ET


LTC Properties Inc. (NYSE:LTC) Q3 2019 Earnings Conference Call - Final Transcript


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Good day and welcome to the LTC Properties Third Quarter 2019 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]

Before management begins its presentation, please note 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 31st, 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. Please go ahead.

Wendy Simpson

Thank you, operator, and good morning. Welcome everyone to LTC's 2019 third quarter conference call. Joining me today are Pam Kessler, our Chief Financial Officer and Clint Malin, our Chief Investment Officer.

LTC is positioning itself for future success by overcoming recent partner challenges, providing creative financing solutions to take advantage of pipeline opportunities and identifying dispositions that strengthen our portfolio by removing non-strategic assets and diversifying partner concentration. Today, we will discuss our progress.

I'm happy to report that most of the portfolio challenges we discussed are being resolved. Our Thrive portfolio is 100% transitioned and Anthem continues to improve performance. As Clint will discuss later, we are in the process of successfully transitioning the LTC-owned properties operated by Preferred Care. Senior Care Centers remains the one issue over which we have the most limited control as they continue to work through the bankruptcy process. The judge in the proceedings entered an order, allowing Senior Care to assume their LTC lease. This order requires payment of our cure claim, which consist of unpaid December 2018 rent, late fees and legal fees, totaling approximately $1.6 million as of the date of the order. The payment is due, either upon the effective date of Senior Care's plan of reorganization or December 16, whichever comes first.

On October 22, the judge approved the disclosure statement and scheduled a confirmation hearing on December 4th to approve Senior Care's plan of reorganization. From that point, subject to Senior Care securing and its financing, we anticipate it will take approximately two weeks to four weeks for reorganization to become effective and for their emergence from bankruptcy. This issue aside, we are optimistic about our future prospects, including our current pipeline. In an environment that remains saturated with capital, we see opportunities in the smaller, yet strategic deals, on which other capital providers are not as focused. We are often approached by regional operators who not only want to grow their businesses, but also have the operational resources to do so and we are working closely with them to offer an array of financial structures that work for them