This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240729715504/en/
|
|
Three Months Ended |
||||||
|
|
|
||||||
(unaudited, amounts in thousands, except per share data) |
|
2024 |
|
2023 |
||||
Total revenues |
|
$ |
50,116 |
|
$ |
48,246 |
||
Net income available to common stockholders |
|
$ |
19,188 |
|
|
|
6,028 |
|
Diluted earnings per common share |
|
$ |
0.44 |
|
|
$ |
0.15 |
|
NAREIT funds from operations ("FFO") attributable to common stockholders(1) |
|
$ |
28,244 |
|
|
$ |
27,178 |
|
NAREIT diluted FFO per common share(1) |
|
$ |
0.65 |
|
|
$ |
0.66 |
|
FFO attributable to common stockholders, excluding non-recurring items(1) |
|
$ |
29,266 |
|
|
$ |
27,178 |
|
Funds available for distribution ("FAD")(1) |
|
$ |
29,548 |
|
|
$ |
27,935 |
|
FAD, excluding non-recurring items(1) |
|
$ |
28,662 |
|
|
$ |
27,935 |
|
_______________ | ||
(1) |
NAREIT FFO and FAD are non-GAAP financial measures. A reconciliation of these measures is included in the tables at the end of this press release. |
More detailed financial information is available in the tables at the end of this press release, the Company’s Supplemental Operating and Financial Data presentation for the 2024 second quarter, and its Form 10-Q, as filed with the
Second Quarter 2024 Financial Results:
- Total revenues increased as the result of higher interest income from mortgage and mezzanine loan originations in 2023, construction loan funding in 2024, interest rate escalations, and insurance proceeds related to sold properties.
- Expenses decreased primarily due to the impairment loss in the year-ago period, a decrease in interest expense due to scheduled principal paydowns on the Company’s senior unsecured notes, partially offset by an increase in general and administrative expense, and an increase in provisions for credit losses.
- Income from unconsolidated joint ventures increased as a result of a 2024 mortgage loan origination.
2024 Second Quarter Portfolio Update:
Investment
-
As previously announced, originated a
$12.7 million mortgage loan secured by a skilled nursing and assisted living campus with 78 units and 104 beds inTexas . The five-year mortgage loan is interest only at a current rate of 9.15%. The investment is accounted for as an unconsolidated joint venture, and is expected to generate approximately$884,000 of revenue in 2024.
Operator Update – ALG Senior (“ALG”)
-
LTC deferred a total of
$1.5 million in rent from ALG for May and June of 2024 on a portfolio of 11 assisted living communities inNorth Carolina that the Company owns through a joint venture accounted for as a financing receivable, with a balance of$121.4 million atJune 30, 2024 . Additionally, LTC agreed to defer up to approximately$250,000 in rent per month for July throughDecember 2024 , or a total of up to$1.5 million . -
LTC also amended a lease on another assisted living community operated by ALG. Under the amendment, no rent is due for May through
September 2024 , with quarterly market-based rent resets thereafter. Previous annualized rent was approximately$900,000 . LTC wrote-off$321,000 of straight-line rent receivable related to this lease during the 2024 second quarter. -
LTC funded
$8.3 million under two mortgage loans receivable due from affiliates of ALG. -
Concurrently with the mortgage loans receivable funding, LTC entered into two joint venture investments related to 17 properties operated by ALG in North and
South Carolina , as follows:-
Exchanged its
$64.5 million mortgage loan receivable for 53% interest in a joint venture that owns 13 assisted living communities inNorth Carolina (12) andSouth Carolina (1). -
Exchanged its
$38.0 million mortgage loans receivable for 93% interest in a joint venture that owns four assisted living communities and a parcel of land inNorth Carolina . -
Each of the joint ventures concurrently leased the properties to an affiliate of ALG under separate 10-year master leases maturing at the end of
June 2034 , with purchase options available throughJune 2028 . Combined contractual annualized cash income under the leases is$7.4 million , compared with$6.9 million of annualized cash interest under the previous mortgage loans, as a result of the additional$8.3 million in cash LTC invested. Due to the purchase options given to the seller, these investments are being accounted for as financing receivables.
-
Exchanged its
- All of LTC’s investments with ALG are now cross-defaulted and cross-collateralized, providing the Company with added security.
Asset Sales and Payoff
-
Sold two closed properties located in
Texas for$500,000 , as previously disclosed, and received$397,000 of proceeds, net of transaction cost. -
Received
$2.0 million from the payoff of a mortgage loan secured by a parcel of land inMissouri .
Transition
-
As previously announced, transitioned a 56-unit assisted living community in
Texas to an operator new to LTC.
Amendments and Extensions
-
Amended a master lease with
HMG Healthcare (“HMG”) covering 11 skilled nursing centers inTexas to extend the term throughDecember 2028 . As a condition of the amendment, HMG agreed to repay$11.9 million on its$13.5 million working capital note during the 2024 second quarter, which was subsequently amended toJuly 11, 2024 . During and subsequent to the second quarter, the$11.9 million was paid in full. HMG’s current working capital note repayment obligation is$1.6 million , which is interest free and will be repaid ratably through the end of 2028. -
An operator exercised its renewal option through
February 2030 . Annual cash rent for 2024 is$8.0 million , escalating 2.5% annually.
Activities Subsequent to
-
Committed to fund a
$26.1 million mortgage loan for the construction of a 116-unit independent living, assisted living and memory care community inIllinois . The borrower contributed$12.3 million of equity which will initially fund the construction. Once all of the borrower’s equity has been drawn, expected in early 2025, LTC will begin funding the commitment. The loan term is approximately six years at a current rate of 9.0% and IRR of 9.5%; -
Sold an 80-unit assisted living community in
Texas to the operator for$8.0 million . LTC anticipates recording a gain on sale of approximately$3.6 million . The operator paid$441,000 in rent through the remainder of the initial lease term. -
Recorded
$2.6 million of income from former operators related to portfolio transitions in prior years.
Balance Sheet and Liquidity at
LTC had total liquidity of
Conference Call Information
LTC will conduct a conference call on
Webcast |
|
|
|
|
(888) 506‑0062 |
International Number |
|
(973) 528‑0011 |
Conference Access Code |
|
927824 |
Additionally, an audio replay of the call will be available one hour after the live call through
|
|
(877) 481‑4010 |
International Number |
|
(919) 882-2331 |
Conference Number |
|
50745 |
About LTC
LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC’s investment portfolio includes 194 properties in 26 states with 31 operating partners. Based on its gross real estate investments, LTC’s investment portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.
Forward-Looking Statements
This press release includes statements that are not purely historical and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Please see LTC’s most recent Annual Report on Form 10‑K, its subsequent Quarterly Reports on Form 10‑Q, and its other publicly available filings with the
CONSOLIDATED STATEMENTS OF INCOME (unaudited, amounts in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
31,657 |
|
|
$ |
31,537 |
|
|
$ |
65,206 |
|
|
$ |
63,272 |
|
Interest income from financing receivables(1) |
|
|
3,830 |
|
|
|
3,830 |
|
|
|
7,660 |
|
|
|
7,581 |
|
Interest income from mortgage loans |
|
|
12,661 |
|
|
|
11,926 |
|
|
|
25,109 |
|
|
|
23,170 |
|
Interest and other income |
|
|
1,968 |
|
|
|
953 |
|
|
|
3,507 |
|
|
|
3,723 |
|
Total revenues |
|
|
50,116 |
|
|
|
48,246 |
|
|
|
101,482 |
|
|
|
97,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
10,903 |
|
|
|
11,312 |
|
|
|
21,948 |
|
|
|
21,921 |
|
Depreciation and amortization |
|
|
9,024 |
|
|
|
9,376 |
|
|
|
18,119 |
|
|
|
18,586 |
|
Impairment loss |
|
|
— |
|
|
|
12,076 |
|
|
|
— |
|
|
|
12,510 |
|
Provision for credit losses |
|
|
703 |
|
|
|
187 |
|
|
|
727 |
|
|
|
1,918 |
|
Transaction costs |
|
|
380 |
|
|
|
91 |
|
|
|
646 |
|
|
|
208 |
|
Property tax expense |
|
|
3,247 |
|
|
|
3,187 |
|
|
|
6,630 |
|
|
|
6,480 |
|
General and administrative expenses |
|
|
6,760 |
|
|
|
6,091 |
|
|
|
13,251 |
|
|
|
12,385 |
|
Total expenses |
|
|
31,017 |
|
|
|
42,320 |
|
|
|
61,321 |
|
|
|
74,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Loss) gain on sale of real estate, net |
|
|
(32 |
) |
|
|
302 |
|
|
|
3,219 |
|
|
|
15,675 |
|
Operating income |
|
|
19,067 |
|
|
|
6,228 |
|
|
|
43,380 |
|
|
|
39,413 |
|
Income from unconsolidated joint ventures |
|
|
671 |
|
|
|
376 |
|
|
|
1,047 |
|
|
|
752 |
|
Net income |
|
|
19,738 |
|
|
|
6,604 |
|
|
|
44,427 |
|
|
|
40,165 |
|
Income allocated to non-controlling interests |
|
|
(377 |
) |
|
|
(430 |
) |
|
|
(836 |
) |
|
|
(857 |
) |
Net income attributable to |
|
|
19,361 |
|
|
|
6,174 |
|
|
|
43,591 |
|
|
|
39,308 |
|
Income allocated to participating securities |
|
|
(173 |
) |
|
|
(146 |
) |
|
|
(338 |
) |
|
|
(293 |
) |
Net income available to common stockholders |
|
$ |
19,188 |
|
|
$ |
6,028 |
|
|
$ |
43,253 |
|
|
$ |
39,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.44 |
|
|
$ |
0.15 |
|
|
$ |
1.01 |
|
|
$ |
0.95 |
|
Diluted |
|
$ |
0.44 |
|
|
$ |
0.15 |
|
|
$ |
1.00 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares used to calculate earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
43,171 |
|
|
|
41,145 |
|
|
|
43,030 |
|
|
|
41,113 |
|
Diluted |
|
|
43,463 |
|
|
|
41,232 |
|
|
|
43,322 |
|
|
|
41,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends declared and paid per common share |
|
$ |
0.57 |
|
|
$ |
0.57 |
|
|
$ |
1.14 |
|
|
$ |
1.14 |
|
_______________ | ||
(1) |
Represents rental income from acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as financing receivables on the Consolidated Balance Sheets and the rental income to be presented as Interest income from financing receivables on the Consolidated Statements of Income. |
CONSOLIDATED BALANCE SHEETS (amounts in thousands, except per share amounts) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
(unaudited) |
|
(audited) |
||||
ASSETS |
|
|
|
|
|
|
||
Investments: |
|
|
|
|
|
|
||
Land |
|
$ |
119,141 |
|
|
$ |
121,725 |
|
Buildings and improvements |
|
|
1,216,774 |
|
|
|
1,235,600 |
|
Accumulated depreciation and amortization |
|
|
(390,863 |
) |
|
|
(387,751 |
) |
Operating real estate property, net |
|
|
945,052 |
|
|
|
969,574 |
|
Properties held-for-sale, net of accumulated depreciation: 2024—$1,906; 2023—$3,616 |
|
|
4,248 |
|
|
|
18,391 |
|
Real property investments, net |
|
|
949,300 |
|
|
|
987,965 |
|
Financing receivables,(1) net of credit loss reserve: 2024—$3,615; 2023—$1,980 |
|
|
357,910 |
|
|
|
196,032 |
|
Mortgage loans receivable, net of credit loss reserve: 2024—$3,927; 2023—$4,814 |
|
|
389,448 |
|
|
|
477,266 |
|
Real estate investments, net |
|
|
1,696,658 |
|
|
|
1,661,263 |
|
Notes receivable, net of credit loss reserve: 2024—$590; 2023—$611 |
|
|
58,405 |
|
|
|
60,490 |
|
Investments in unconsolidated joint ventures |
|
|
30,504 |
|
|
|
19,340 |
|
Investments, net |
|
|
1,785,567 |
|
|
|
1,741,093 |
|
|
|
|
|
|
|
|
||
Other assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
6,174 |
|
|
|
20,286 |
|
Debt issue costs related to revolving line of credit |
|
|
1,621 |
|
|
|
1,557 |
|
Interest receivable |
|
|
57,465 |
|
|
|
53,960 |
|
Straight-line rent receivable |
|
|
18,706 |
|
|
|
19,626 |
|
Lease incentives |
|
|
3,573 |
|
|
|
2,607 |
|
Prepaid expenses and other assets |
|
|
17,610 |
|
|
|
15,969 |
|
Total assets |
|
$ |
1,890,716 |
|
|
$ |
1,855,098 |
|
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
||
Revolving line of credit |
|
$ |
281,750 |
|
|
$ |
302,250 |
|
Term loans, net of debt issue costs: 2024—$267; 2023—$342 |
|
|
99,733 |
|
|
|
99,658 |
|
Senior unsecured notes, net of debt issue costs: 2024—$1,138; 2023—$1,251 |
|
|
479,522 |
|
|
|
489,409 |
|
Accrued interest |
|
|
4,997 |
|
|
|
3,865 |
|
Accrued expenses and other liabilities |
|
|
41,957 |
|
|
|
43,649 |
|
Total liabilities |
|
|
907,959 |
|
|
|
938,831 |
|
|
|
|
|
|
|
|
||
EQUITY |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock: |
|
|
435 |
|
|
|
430 |
|
Capital in excess of par value |
|
|
1,005,468 |
|
|
|
991,656 |
|
Cumulative net income |
|
|
1,677,986 |
|
|
|
1,634,395 |
|
Accumulated other comprehensive income |
|
|
5,965 |
|
|
|
6,110 |
|
Cumulative distributions |
|
|
(1,800,715 |
) |
|
|
(1,751,312 |
) |
|
|
|
889,139 |
|
|
|
881,279 |
|
Non-controlling interests |
|
|
93,618 |
|
|
|
34,988 |
|
Total equity |
|
|
982,757 |
|
|
|
916,267 |
|
Total liabilities and equity |
|
$ |
1,890,716 |
|
|
$ |
1,855,098 |
|
_______________ | ||
(1) |
Represents acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as financing receivables on the Consolidated Balance Sheets. |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, amounts in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Six Months Ended |
||||||
|
|
2024 |
|
2023 |
||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
44,427 |
|
|
$ |
40,165 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
18,119 |
|
|
|
18,586 |
|
Stock-based compensation expense |
|
|
4,522 |
|
|
|
4,226 |
|
Impairment loss |
|
|
— |
|
|
|
12,510 |
|
Gain on sale of real estate, net |
|
|
(3,219 |
) |
|
|
(15,675 |
) |
Income from unconsolidated joint ventures |
|
|
(1,047 |
) |
|
|
(752 |
) |
Income distributions from unconsolidated joint ventures |
|
|
421 |
|
|
|
— |
|
Straight-line rental adjustment |
|
|
598 |
|
|
|
888 |
|
Exchange of prepayment fee for participating interest in mortgage loan |
|
|
— |
|
|
|
(1,380 |
) |
Adjustment for collectability of rental income and lease incentives |
|
|
321 |
|
|
|
26 |
|
Amortization of lease incentives |
|
|
438 |
|
|
|
413 |
|
Provision for credit losses |
|
|
727 |
|
|
|
1,918 |
|
Application of interest reserve |
|
|
(233 |
) |
|
|
(1,609 |
) |
Amortization of debt issue costs |
|
|
535 |
|
|
|
600 |
|
Other non-cash items, net |
|
|
48 |
|
|
|
47 |
|
Change in operating assets and liabilities |
|
|
|
|
|
|
||
Lease incentives funded |
|
|
(1,594 |
) |
|
|
(19 |
) |
Increase in interest receivable |
|
|
(4,135 |
) |
|
|
(4,593 |
) |
Increase (decrease) in accrued interest payable |
|
|
1,132 |
|
|
|
(1,364 |
) |
Net change in other assets and liabilities |
|
|
(3,150 |
) |
|
|
(7,453 |
) |
Net cash provided by operating activities |
|
|
57,910 |
|
|
|
46,534 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Investment in real estate properties |
|
|
(319 |
) |
|
|
(43,759 |
) |
Investment in real estate capital improvements |
|
|
(3,635 |
) |
|
|
(3,230 |
) |
Proceeds from sale of real estate, net |
|
|
25,664 |
|
|
|
37,553 |
|
Investment in financing receivables |
|
|
— |
|
|
|
(112,712 |
) |
Investment in real estate mortgage loans receivable |
|
|
(16,054 |
) |
|
|
(70,603 |
) |
Principal payments received on mortgage loans receivable |
|
|
2,393 |
|
|
|
251 |
|
Investments in unconsolidated joint ventures |
|
|
(11,164 |
) |
|
|
— |
|
Advances and originations under notes receivable |
|
|
(188 |
) |
|
|
(866 |
) |
Principal payments received on notes receivable |
|
|
2,294 |
|
|
|
5,965 |
|
Net cash used in investing activities |
|
|
(1,009 |
) |
|
|
(187,401 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings from revolving line of credit |
|
|
19,200 |
|
|
|
224,950 |
|
Repayment of revolving line of credit |
|
|
(39,700 |
) |
|
|
(28,600 |
) |
Principal payments on senior unsecured notes |
|
|
(10,000 |
) |
|
|
(11,000 |
) |
Proceeds from common stock issued |
|
|
10,974 |
|
|
|
1,777 |
|
Distributions paid to stockholders |
|
|
(49,403 |
) |
|
|
(47,162 |
) |
Distributions paid to non-controlling interests |
|
|
(109 |
) |
|
|
(812 |
) |
Financing costs paid |
|
|
(411 |
) |
|
|
(20 |
) |
Cash paid for taxes in lieu of shares upon vesting of restricted stock |
|
|
(1,533 |
) |
|
|
(1,619 |
) |
Other |
|
|
(31 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
|
(71,013 |
) |
|
|
137,514 |
|
Decrease in cash and cash equivalents |
|
|
(14,112 |
) |
|
|
(3,353 |
) |
Cash and cash equivalents, beginning of period |
|
|
20,286 |
|
|
|
10,379 |
|
Cash and cash equivalents, end of period |
|
$ |
6,174 |
|
|
$ |
7,026 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
20,281 |
|
|
$ |
22,685 |
|
Non-cash investing and financing transactions: |
|
|
|
|
|
|
||
Contribution from non-controlling interest |
|
$ |
61,025 |
|
|
$ |
12,964 |
|
Investment in financing receivables |
|
$ |
(163,460 |
) |
|
$ |
— |
|
Exchange of mezzanine loan and related prepayment fee for participating interest in mortgage loan |
|
$ |
— |
|
|
$ |
(8,841 |
) |
Exchange of mortgage loans for controlling interests in joint ventures accounted for as financing receivables |
|
$ |
102,435 |
|
|
$ |
— |
|
Reserves withheld at financing and mortgage loan receivable origination |
|
$ |
— |
|
|
$ |
(5,147 |
) |
Accretion of interest reserve recorded as mortgage loan receivable |
|
$ |
233 |
|
|
$ |
1,609 |
|
Increase (decrease) in fair value of interest rate swap agreements |
|
$ |
145 |
|
|
$ |
(151 |
) |
Distributions paid to non-controlling interests |
|
$ |
817 |
|
|
$ |
— |
|
Distributions paid to non-controlling interests related to property sale |
|
$ |
2,305 |
|
|
$ |
— |
|
Mortgage loan receivable reserve withheld at origination |
|
$ |
— |
|
|
$ |
1,506 |
|
Supplemental Reporting Measures
FFO and FAD are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by
FFO, as defined by the
We define FAD as FFO excluding the effects of straight-line rent, amortization of lease inducement, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in the consolidated balance sheet. At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. Effective interest method, as required by GAAP, is a technique for calculating the actual interest rate for the term of a mortgage loan based on the initial origination value. Similar to the accounting methodology of straight-line rent, the actual interest rate is higher than the stated interest rate in the early years of the mortgage loan thus creating an effective interest receivable asset included in the interest receivable line item in the consolidated balance sheet and reduces down to zero when, at some point during the mortgage loan, the stated interest rate is higher than the actual interest rate. FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.
While the Company uses FFO and FAD as supplemental performance measures of the cash flow generated by operations and cash available for distribution to stockholders, such measures are not representative of cash generated from operating activities in accordance with GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.
Reconciliation of FFO and FAD
The following table reconciles GAAP net income available to common stockholders to each of NAREIT FFO attributable to common stockholders and FAD (unaudited, amounts in thousands):
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net income available to common stockholders |
|
$ |
19,188 |
|
|
$ |
6,028 |
|
|
$ |
43,253 |
|
|
$ |
39,015 |
|
|
Add: Impairment loss |
|
|
— |
|
|
|
12,076 |
|
|
|
— |
|
|
|
12,510 |
|
|
Add: Depreciation and amortization |
|
|
9,024 |
|
|
|
9,376 |
|
|
|
18,119 |
|
|
|
18,586 |
|
|
Add (Less): Loss (Gain) on sale of real estate, net |
|
|
32 |
|
|
|
(302 |
) |
|
|
(3,219 |
) |
|
|
(15,675 |
) |
|
NAREIT FFO attributable to common stockholders |
|
|
28,244 |
|
|
|
27,178 |
|
|
|
58,153 |
|
|
|
54,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add: Non-recurring items |
|
|
1,022 |
|
(1) |
|
— |
|
|
|
(1,355 |
) |
(1) |
|
262 |
|
(1) |
FFO attributable to common stockholders, excluding non-recurring items |
|
$ |
29,266 |
|
|
$ |
27,178 |
|
|
$ |
56,798 |
|
|
$ |
54,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NAREIT FFO attributable to common stockholders |
|
$ |
28,244 |
|
|
$ |
27,178 |
|
|
|
58,153 |
|
|
|
54,436 |
|
|
Non-cash income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add: straight-line rental adjustment |
|
|
48 |
|
|
|
423 |
|
|
|
598 |
|
|
|
888 |
|
|
Add: amortization of lease incentives |
|
|
205 |
|
|
|
230 |
|
|
|
438 |
|
|
|
439 |
|
|
Add: Other non-cash contra-revenue |
|
|
321 |
|
(2) |
|
— |
|
|
|
321 |
|
(2) |
|
— |
|
|
Less: Effective interest income |
|
|
(2,293 |
) |
|
|
(2,220 |
) |
|
|
(3,937 |
) |
|
|
(3,828 |
) |
|
Net non-cash income |
|
|
(1,719 |
) |
|
|
(1,567 |
) |
|
|
(2,580 |
) |
|
|
(2,501 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Add: Non-cash compensation charges |
|
|
2,320 |
|
|
|
2,137 |
|
|
|
4,522 |
|
|
|
4,225 |
|
|
Add: Provision for credit losses |
|
|
703 |
|
(3) |
|
187 |
|
|
|
727 |
|
(3) |
|
1,918 |
|
(3) |
Net non-cash expense |
|
|
3,023 |
|
|
|
2,324 |
|
|
|
5,249 |
|
|
|
6,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Funds available for distribution (FAD) |
|
$ |
29,548 |
|
|
$ |
27,935 |
|
|
|
60,822 |
|
|
|
58,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Non-recurring income |
|
|
(886 |
) |
(1) |
|
— |
|
|
|
(3,263 |
) |
(1) |
|
(1,570 |
) |
(1) |
Funds available for distribution (FAD), excluding non-recurring items |
|
$ |
28,662 |
|
|
$ |
27,935 |
|
|
$ |
57,559 |
|
|
$ |
56,508 |
|
|
_______________ | ||
(1) |
See the reconciliation of non-recurring items on the following page for further detail. |
|
(2) |
Represents the straight-line rent receivable write-off of |
|
(3) |
Includes provision for credit losses reserve recorded upon origination of acquisitions accounted for as financing receivables, and mortgage loans, offset by mortgage loan payoffs. See the reconciliation of non-recurring items on the following page for further detail. |
Reconciliation of FFO and FAD (continued)
The following table continues the reconciliation between GAAP net income available to common stockholders and each of NAREIT FFO attributable to common stockholders and FAD by reconciling the non-recurring items (unaudited, amounts in thousands):
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
Reconciliation of non-recurring adjustments to NAREIT FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for credit losses reserve recorded upon origination |
|
$ |
1,635 |
|
(1) |
$ |
— |
|
$ |
1,635 |
|
(1) |
$ |
1,832 |
|
(1) |
|
Provision for credit losses recovery related to loan payoffs |
|
|
(934 |
) |
(1) |
|
— |
|
|
|
(934 |
) |
(1) |
|
— |
|
|
Add: Total provision for credit losses non-recurring adjustments |
|
|
701 |
|
|
|
— |
|
|
|
701 |
|
|
|
1,832 |
|
|
Add: Straight-line rent receivable write-off |
|
|
321 |
|
(2) |
|
— |
|
|
|
321 |
|
(2) |
|
— |
|
|
Deduct: Mortgage interest income related to the exit IRR received |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,570 |
) |
(3) |
Deduct: Rental income related to the repayment of rent credit |
|
|
— |
|
|
|
— |
|
|
|
(2,377 |
) |
(4) |
|
— |
|
|
Total non-recurring adjustments to NAREIT FFO |
|
$ |
1,022 |
|
|
$ |
— |
|
|
$ |
(1,355 |
) |
|
$ |
262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of non-recurring adjustments to FAD: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deduct: Mortgage interest income related to the exit IRR received |
|
$ |
(886 |
) |
(3) |
$ |
— |
|
|
$ |
(886 |
) |
(3) |
$ |
(1,570 |
) |
(5) |
Deduct: Rental income related to the repayment of rent credit |
|
|
— |
|
|
|
— |
|
|
|
(2,377 |
) |
(4) |
|
— |
|
|
Total non-recurring cash adjustments to FAD |
|
$ |
(886 |
) |
|
$ |
— |
|
|
$ |
(3,263 |
) |
|
$ |
(1,570 |
) |
|
_______________ | ||
(1) |
A 1% credit loss reserve is taken upon origination of financing transactions, then decreased as the balance is paid down through scheduled principal payments and payoffs. |
|
|
|
|
(2) |
Represents the straight-line rent receivable write-off related to a lease that converted to fair market rent during 2Q 2024. The straight-line rent write-off is a contra-revenue on the Consolidated Statements of Income. |
|
(3) |
The exit IRR income was received upon the payoff of three mortgage loans in 2024. The exit IRR was previously recorded ratably over the term of the loan through effective interest income. |
|
(4) |
The rent credit was received in connection with the sale of a 110-unit assisted living community in |
|
(5) |
The exit IRR income was received upon the payoff of two mezzanine loans in 2023 and was not previously recorded. |
Reconciliation of FFO and FAD (continued)
The following table continues the reconciliation between GAAP net income available to common stockholders and each of NAREIT FFO attributable to common stockholders and FAD (unaudited, amounts in thousands, except per share amounts):
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NAREIT Basic FFO attributable to common stockholders per share |
|
$ |
0.65 |
|
$ |
0.66 |
|
$ |
1.35 |
|
$ |
1.32 |
||||
NAREIT Diluted FFO attributable to common stockholders per share |
|
$ |
0.65 |
|
|
$ |
0.66 |
|
|
$ |
1.34 |
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NAREIT Diluted FFO attributable to common stockholders |
|
$ |
28,417 |
|
|
$ |
27,324 |
|
|
$ |
58,491 |
|
|
$ |
54,729 |
|
Weighted average shares used to calculate NAREIT diluted FFO per share attributable to common stockholders |
|
|
43,767 |
|
|
|
41,489 |
|
|
|
43,613 |
|
|
|
41,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted FFO attributable to common stockholders, excluding non-recurring items |
|
$ |
29,439 |
|
|
$ |
27,324 |
|
|
$ |
57,136 |
|
|
$ |
54,991 |
|
Weighted average shares used to calculate diluted FFO, excluding non-recurring items, per share attributable to common stockholders |
|
|
43,767 |
|
|
|
41,489 |
|
|
|
43,613 |
|
|
|
41,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted FAD |
|
$ |
29,721 |
|
|
$ |
28,081 |
|
|
$ |
61,160 |
|
|
$ |
58,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares used to calculate diluted FAD per share |
|
|
43,767 |
|
|
|
41,489 |
|
|
|
43,613 |
|
|
|
41,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted FAD, excluding non-recurring items |
|
$ |
28,835 |
|
|
$ |
28,081 |
|
|
$ |
57,897 |
|
|
$ |
56,801 |
|
Weighted average shares used to calculate diluted FAD, excluding non-recurring items, per share |
|
|
43,767 |
|
|
|
41,489 |
|
|
|
43,613 |
|
|
|
41,454 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729715504/en/
(805) 981‑8655
Source: