LTC Properties Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>LTC Properties Inc. filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

LTC PROPERTIES INC (LTC) filed a Annual Report (10-K) with the SEC on February 15, 2024. LTC Properties Inc. filed its 2023 Form 10-K on February 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company is classified under Real Estate Investment Trusts (SIC 6798). LTC Properties Inc. is incorporated in Maryland. The business and mailing address is 2829 Townsgate Road, Suite 350, Westlake Village, CA 91361.

Why It Matters

For investors and stakeholders tracking LTC PROPERTIES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of LTC Properties Inc.'s financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and outlook. As a Real Estate Investment Trust (REIT), the details within this filing are essential for understanding the company's property portfolio, rental income, financing activities, and compliance with industry-specific regulations.

Risk Assessment

Risk Level: medium — LTC PROPERTIES INC shows moderate risk based on this filing. The company's financial performance is subject to the inherent risks of the real estate and healthcare industries, including tenant defaults and regulatory changes, as indicated by the nature of its business as a REIT operating in these sectors.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand LTC Properties Inc.'s exposure to real estate market fluctuations and healthcare sector trends.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-15 — Filing Date (Date of filing)
• 6798 — SIC Code (Standard Industrial Classification)
• 41262000 — Value 1 (Associated with P4Y)
• 43022000 — Value 2 (Associated with P4Y)

Key Players & Entities

• LTC PROPERTIES INC (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-15 (date) — Filing date
• Real Estate Investment Trusts (industry) — Standard Industrial Classification
• MD (location) — State of incorporation
• 2829 TOWNSGATE ROAD (address) — Business street address
• WESTLAKE VILLAGE (location) — Business city
• CA (location) — Business state

FAQ

Risk Factors

• Tenant and Operator Performance [high — financial]: The company's financial results are significantly impacted by the financial performance and stability of its tenants and operators, particularly in the healthcare sector.
• Real Estate Market Conditions [medium — market]: Adverse changes in the real estate market, including occupancy rates and property values, can negatively affect the company's revenues and asset values.
• Healthcare Regulatory Environment [medium — regulatory]: Changes in healthcare laws and regulations could impact the operations and profitability of the company's healthcare-focused tenants.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-15: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Key Financial Figures

• $13,469 — niors housing community. (5) Excludes $13,469 variable rental income from lessee reim
• $3,057 — mbursement of our real estate taxes and $3,057 rental income from sold properties. (
• $1,723 — me from sold properties. (6) Excludes $1,723 interest income from paid-off mezzanine
• $1.7 billion — our total investment portfolio included $1.7 billion in carrying value of net investments co
• $1.0 billion — value of net investments consisting of $1.0 billion or 56.7% invested in owned and leased p
• $196.0 million — nvested in owned and leased properties, $196.0 million or 11.3% invested in properties we own
• $477.3 million — accounted for as financing receivables, $477.3 million or 27.4% invested in mortgage 5 Tabl
• $60.5 million — nts loans secured by first mortgages, $60.5 million or 3.5% in notes receivable and $19.3 m
• $19.3 million — million or 3.5% in notes receivable and $19.3 million or 1.1% in unconsolidated joint venture
• $1.2 million — ) of 9.0%. Upon origination we recorded $1.2 million Provision for credit losses equal to 1%
• $547.7 million — re centers for a total of approximately $547.7 million. Additionally, during the past three ye
• $202.8 million — f properties for a total sales price of $202.8 million. Prior to finalizing an investment, we

Filing Documents

• ltc-20231231x10k.htm (10-K) — 8192KB
• ltc-20231231xex10d17.htm (EX-10.17) — 23KB
• ltc-20231231xex21.htm (EX-21) — 79KB
• ltc-20231231xex23d1.htm (EX-23.1) — 7KB
• ltc-20231231xex31d1.htm (EX-31.1) — 11KB
• ltc-20231231xex31d2.htm (EX-31.2) — 11KB
• ltc-20231231xex32.htm (EX-32) — 9KB
• ltc-20231231xex97.htm (EX-97) — 20KB
• ltc-20231231x10k001.jpg (GRAPHIC) — 2KB
• ltc-20231231x10k009.jpg (GRAPHIC) — 45KB
• ltc-20231231x10k012.jpg (GRAPHIC) — 64KB
• ltc-20231231x10k013.jpg (GRAPHIC) — 27KB
• 0001558370-24-001256.txt (&nbsp;) — 30408KB
• ltc-20231231.xsd (EX-101.SCH) — 160KB
• ltc-20231231_cal.xml (EX-101.CAL) — 92KB
• ltc-20231231_def.xml (EX-101.DEF) — 658KB
• ltc-20231231_lab.xml (EX-101.LAB) — 1100KB
• ltc-20231231_pre.xml (EX-101.PRE) — 962KB
• ltc-20231231x10k_htm.xml (XML) — 7226KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26 Item 2.

Properties

Properties 27 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. Reserved 31 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 8.

Financial Statements

Financial Statements 53 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 101 Item 9A.

Controls and Procedures

Controls and Procedures 101 Item 9B. Other Information 104 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection s 104 Part III Item 10. Directors, Executive Officers and Corporate Governance 104 Item 11.

Executive Compensation

Executive Compensation 104 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 104 Item 13. Certain Relationships and Related Transactions, and Director Independence 104 Item 14. Principal Accountant Fees and Services 104 Part IV Item 15. Exhibits and Financial Statement Schedules 105 Item 16. Form 10-K Summary 106

SIGNATURES

SIGNATURES 107 3 Table of Contents PART I

BUSINESS

Item 1. BUSINESS General LTC Properties, Inc. is a real estate investment trust ("REIT") that invests in seniors housing and health care properties through sale-leasebacks, mortgage financing, joint ventures, construction financing and structured finance solutions including preferred equity and mezzanine lending. Our investments in owned properties, mortgage loans, mezzanine loans and preferred equity investments represent our primary source of income. We depend upon the performance of our operators with respect to the daily management and marketing of long-term health care services offered at our properties. Our real estate investments include the following types of properties: Independent living communities ("ILF") , also known as retirement communities or senior apartments, offer a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many independent living communities offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers. Assisted living communities ("ALF") serve people who require assistance with activities of daily living, but do not require the degree of supervision that skilled nursing facilities provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. Many assisted living facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs. Memory care communities ("MC") offer specialized options for people with Alzheimer's disease and other forms of dementia. These purpose built, free-standing facilities offer an alternative for private-pay residents affected by memory loss in comparison to other accommodation

Properties

Properties Beds/Units Investments Contributions 2023 NC ALF/MC 11 523 $ 121,321 $ 117,490 2022 FL SNF 3 299 76,691 61,661 14 822 $ 198,012 $ 179,151 Type Initial Interest Income from Financing Receivables Lease of Contractual During Maturity

Properties

Properties Cash Yield 2023 2022 2033 (1) ALF/MC 7.25 % $ 9,625 $ — 2032 (2) SNF 7.25 % 5,618 1,762 $ 15,243 $ 1,762 (1) The JV leased these communities back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options. The contractual initial cash yield of 7.25% increases to 7.5% in year three then escalates thereafter based on CPI subject to a floor of 2.0% and a ceiling of 4.0%. The JV provided the seller-lessee with a purchase option to buy up to 50% of the properties at the beginning of the third lease year and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit Internal Rate of Return ("IRR") of 9.0%. Upon origination we recorded $1.2 million Provision for credit losses equal to 1% of the financing receivable balance related to this investment. (2) The JV leased the centers back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option, exercisable at the beginning of the fourth year through the end of the fifth year. 7 Table of Contents Mortgage Loans. As part of our strategy of making investments in properties used in the provision of long-term health care services, we provide mortgage financing on such properties based on our established investment underwriting criteria. We have also provided construction loans that by their terms convert into purchase/lease transactions or permanent financing mortgage loans upon completion of construction. The following table summarizes our investments in mortgage loans secured by first mortgages at December 31, 2023 (dollar amounts in thousands) : Type Percentage Number of Investment Gross of of SNF ALF per Interest Rate Maturity Property Investment Loans (1) Properties (2) Beds Units Bed/Unit 7.5% 2024 MO $ 1,999 OTH 0.4

View Full Filing

View this 10-K filing on SEC EDGAR