LTC Properties Inc (LTC) Announces Q3 2023 Earnings
Net income available to common stockholders increased from $13,159 in Q3 2022 to $22,050 in Q3 2023.
Diluted earnings per common share rose from $0.32 in Q3 2022 to $0.54 in Q3 2023.
NAREIT funds from operations (FFO) attributable to common stockholders increased from $24,217 in Q3 2022 to $26,679 in Q3 2023.
Funds available for distribution (FAD) rose from $26,019 in Q3 2022 to $27,213 in Q3 2023.
On October 26, 2023, LTC Properties Inc (NYSE:LTC) released its earnings report for the third quarter ended September 30, 2023. The company, a real estate investment trust primarily investing in seniors housing and health care properties, reported significant increases in net income, diluted earnings per common share, NAREIT FFO, and FAD.
Financial Performance
Net income available to common stockholders increased significantly from $13,159 in Q3 2022 to $22,050 in Q3 2023. Diluted earnings per common share also saw a substantial rise from $0.32 in Q3 2022 to $0.54 in Q3 2023.
NAREIT funds from operations (FFO) attributable to common stockholders increased from $24,217 in Q3 2022 to $26,679 in Q3 2023. Similarly, FFO attributable to common stockholders, excluding non-recurring items, also increased from $25,477 in Q3 2022 to $26,679 in Q3 2023.
Funds available for distribution (FAD) rose from $26,019 in Q3 2022 to $27,213 in Q3 2023. FAD, excluding non-recurring items, also increased from $26,519 in Q3 2022 to $27,213 in Q3 2023.
Transactions and Updates
During the third quarter of 2023, LTC deferred $900,000 in interest payments under an agreement with Prestige Healthcare. This loan was amended subsequent to September 30, 2023, with LTC drawing $2.8 million from Prestige Healthcares approximate $5.0 million letter of credit to repay all deferred interest outstanding through October 2023.
As a result, LTC expects to receive all contractual interest of $19.5 million due from Prestige Healthcare in 2023. Effective January 1, 2024, the minimum mortgage interest payment due to LTC will be set based on an annual current pay rate of 8.5% on the outstanding loan balance.
Company Outlook
LTC's Q3 2023 results reflect a strong financial performance, with significant increases in net income, diluted earnings per common share, NAREIT FFO, and FAD. The company's strategic transactions and amendments with Prestige Healthcare also indicate a positive outlook for future earnings.
Explore the complete 8-K earnings release (here) from LTC Properties Inc for further details.
This article first appeared on GuruFocus.
