LTC Properties, Inc. (NYSE:LTC) Q3 2022 Results Conference Call October 28, 2022 5:00 PM ET

Company Participants

Wendy Simpson - Chairman and CEO

Pam Kessler - Co-President and CFO

Clint Malin - Co-President and Chief Investment Officer

Conference Call Participants

Steven Valiquette - Barclays

Michael Carroll - RBC Capital Markets

Daniel Bernstein - CapitalOne

Austin Wurschmidt - KeyBanc

Tao Qiu - Stifel

Tayo Okusanya - Credit Suisse

Operator

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 the LTC Properties filings with the Securities and Exchange Commission from time to time, including the Company’s most recent 10-K dated December 31, 2021. 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, this event is being recorded.

I would now like to turn the conference over to Wendy Simpson. Please go ahead.

Wendy Simpson

Thank you, operator. Welcome, everyone to LTC’s 2022 Third Quarter Conference Call. I’m joined by Pam Kessler, Co-President and Chief Financial Officer; and Clint Malin, Co-President and Chief Investment Officer.

With pride, I can say LTC has accomplished much over the last few years, especially in the face of a pandemic that has significantly altered our industry. We have sold assets that were no longer core to our strategy or were not performing to our standards, transitioned a substantial number of assets, and deployed capital into several investments that should serve us well going forward. Year-to-date, investments have totaled over $170 million, which represents our highest level of investment activity since 2015. We are continuing to aggressively identify additional opportunities to fill the financing void that has been created as banks take a wait-and-see approach to investments in our sector.

As a result, over the next 12 to 24 months, we believe that LTC’s investment activity will continue to ramp up as we become even more competitive, bringing flexible and creative financing to strong regional operators who are seeking growth capital at fair rates.

I’d like to highlight our recent $62 million investment with PruittHealth, and Clint will provide more detail shortly. This off-market transaction was the result of our building a relationship with this very strong regional operator over many years. In particular, Doug Korey, our Executive Vice President and Managing Director of Business Development, has done an outstanding job of identifying strong regional partners, nurturing those relationships and working closely with them to provide the right financing solutions at the right times for our potential partners. The Pruitt investment not only adds newer skilled nursing centers to our portfolio, helping lower the portfolio’s average age, but also adds a formidable operator with more than 5 decades of experience and a substantial footprint in the Southeastern United States. We were able to utilize a creative financing package that worked well for PruittHealth and that makes good strategic and financial sense for LTC and our stakeholders. Pruitt is just the kind of operator with whom we like to grow, and we look forward to our ongoing relationship with them.