LTC Properties Inc (LTC) 2023 Q4 法說會逐字稿

Welcome to the LTC Properties Inc fourth quarter 2023 earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Before management begins his 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, 2023. 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.

歡迎參加 LTC Properties Inc 2023 年第四季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。在管理層開始演講之前。請注意，今天的評論（包括問答環節）可能包含前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果和事件有重大差異。這些風險和不確定性在 LTC Properties 不時向美國證券交易委員會提交的文件中進行了詳細說明，包括該公司日期為 2023 年 12 月 31 日的最新 10 K。LTC 不承擔修改或更新這些前瞻性陳述以反映本簡報發布後發生的事件或情況的義務。請注意此事件正在被記錄。

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

我現在想把會議交給溫蒂辛普森。

Thank you, operator, and welcome, everybody, to LTC's 2023 fourth quarter conference call. I am joined today by Pam Kessler Co-President and Chief Financial Officer, and Clint Malin, Co-President and Chief Investment Officer.

謝謝業者，歡迎大家參加 LTC 的 2023 年第四季電話會議。今天與我一同出席的還有聯合總裁兼財務長 Pam Kessler 以及共同總裁兼首席投資長 Clint Malin。

2023 was a year of solid execution, so I want to begin by recognizing our very talented LTC team. During the year, we completed $262 million in investments and generated $77 million in sales proceeds. The sales resulted in net gains totaling $37 million. Additionally, we received $11.8 million in mezzanine loan payoffs, generating $1.6 million of exit IRR income at a weighted average rate of 12%.

2023 年是執行力紮實的一年，因此我想先表彰我們非常有才華的 LTC 團隊。年內，我們完成了 2.62 億美元的投資，並產生了 7,700 萬美元的銷售收入。此次銷售帶來的淨收益總計為 3,700 萬美元。此外，我們還獲得了 1,180 萬美元的夾層貸款償還，以 12% 的加權平均利率產生了 160 萬美元的退出 IRR 收入。

From an operational perspective, we successfully transitioned the Brookdale portfolio, resulting in anticipated revenue of $0.5 million more than we generated from the original lease. We received full contractual 2023 interest from prestige with expectations for full contractual payments through at least 2025. Clint will further discuss this shortly.

從營運角度來看，我們成功地完成了布魯克代爾投資組合的轉型，預計收入將比原來的租賃收入增加了 50 萬美元。我們從 Prestige 收到了 2023 年的全額合約利息，預計至少到 2025 年才能收到全額合約付款。克林特很快就會進一步討論這個問題。

And importantly, we significantly reduced our leverage ahead of Street expectations. From an industry perspective, demand for seniors housing is strong. Occupancy has increased for 10 consecutive quarters. And according to Nick seniors, housing occupancy rates are now on track to recover to pre-pandemic levels in the second half of this year, especially as new construction remains muted. While we are not in the prediction game, we are encouraged by what we're seeing market fundamentals currently favor rates with billions of dollars of financing maturities coming due, interest rates, influx and banks being more selective about their investments, particularly in real estate and for properties that are not currently generating positive cash flow. We have been preparing for this environment by developing creative financing structures, including those with shorter maturities. We believe LTC's creativity and flexibility makes it easier for us to act quickly by providing customized financing solutions based on an operator's needs.

重要的是，我們比華爾街預期大幅降低了槓桿。從產業角度來看，老年人住房需求旺盛。入住率連續 10 個季度成長。據尼克老年人稱，住房入住率目前預計將在今年下半年恢復到疫情大流行前的水平，特別是在新建築仍然低迷的情況下。雖然我們沒有參與預測遊戲，但我們看到市場基本面目前有利於利率，數十億美元的融資即將到期，利率、資金流入以及銀行對投資（尤其是房地產投資）更具選擇性，這讓我們感到鼓舞以及目前未產生正現金流的房產。我們一直在透過開發創造性的融資結構（包括期限較短的融資結構）來為這種環境做好準備。我們相信，LTC 的創造力和靈活性使我們能夠根據營運商的需求提供客製化的融資解決方案，從而更輕鬆地快速採取行動。

Finishing up now with some LTC specific metrics, the FAD payout ratio for the fourth quarter was 79%. We also maintained our monthly dividend payout of $0.19 per share. For the 2024 first quarter, we anticipate that FFO will be in the range of $0.69 to $0.70 per share.

現在，根據 LTC 的一些具體指標，第四季的 FAD 支付率為 79%。我們還維持每股 0.19 美元的每月股息支付。對於 2024 年第一季度，我們預計 FFO 將為每股 0.69 美元至 0.70 美元。

FFO, excluding non-recurring items, will be in the range of $0.63 to $0.64 per share. The decrease between FFO and FFO, excluding nonrecurring items, is due to the repayment of rent related to a property sale in January. Pam will provide details shortly. We're entering 2024 with a stronger, more diversified portfolio and a stronger balance sheet, better positioning LTC for future growth.

不包括非經常性項目的 FFO 將為每股 0.63 美元至 0.64 美元。FFO 和 FFO 之間的減少（不包括非經常性項目）是由於償還 1 月份房產銷售相關的租金。帕姆將很快提供詳細資訊。進入 2024 年，我們將擁有更強大、更多元化的投資組合和更穩健的資產負債表，為 LTC 的未來成長做好更好的定位。

Now I'd like to turn things over to Pam.

現在我想把事情交給帕姆。

All numbers I'm going to discuss today are for the fourth quarter of 2023 compared with the fourth quarter of 2022, unless otherwise stated. Total rental revenues decreased by $2.2 million, principally related to portfolio transition Anthem's repayment in 2020 to have a temporary rent reduction and property sales. This was partially offset by revenue from an acquisition completed in the second quarter of 2023 annual rent escalations and lease renewals and extensions.

除非另有說明，我今天要討論的所有數據都是 2023 年第四季與 2022 年第四季的比較。總租金收入減少了 220 萬美元，主要與 Anthem 2020 年的投資組合轉型還款有關，以暫時降低租金和出售房產。這被 2023 年第二季完成的收購帶來的收入、年度租金上漲以及租約續約和延期所部分抵消。

Interest income from sale-leaseback financing increased $2.4 million, mainly due to the acquisition of 11 assisted living and memory care communities during the 2023 first quarter accounted for as a financing receivable in accordance with GAAP.

售後回租融資的利息收入增加了 240 萬美元，主要是由於 2023 年第一季度收購了 11 個輔助生活和記憶護理社區，根據 GAAP 計入應收融資。

Interest income from mortgage loans increased $1.8 million, primarily due to mortgage loan originations in the first quarter of 2023. Interest expense increased by $3.6 million, primarily due to a higher outstanding balance on our revolving line of credit and higher interest rates.

抵押貸款利息收入增加 180 萬美元，主要是由於 2023 年第一季抵押貸款發放。利息支出增加了 360 萬美元，主要是由於我們的循環信貸額度的未償餘額增加以及利率上升。

Draws on our line of credit were used primarily to prefund 2023 investments. Interest expense was partially offset by scheduled principal paydowns on our senior unsecured notes. We recognized a $16.8 million gain on a sale related to the divestiture of nine assisted living communities, which I'll discuss shortly.

我們的信用額度提取主要用於為 2023 年投資提供資金。利息支出被我們的優先無擔保票據的預定本金償還部分抵銷。我們在與剝離九個輔助生活社區相關的銷售中獲得了 1680 萬美元的收益，我很快就會討論這一點。

Our provision for credit losses increased by $4.2 million, primarily due to a $3.6 million write-off of a working capital note pursuant to a 12 property assisted living master lease with ALG. Additionally, we recorded an impairment loss of $3.3 million related to seven of the Texas properties covered under this lease.

我們的信貸損失撥備增加了 420 萬美元，主要是由於根據與 ALG 簽訂的 12 項財產輔助生活主租賃協議沖銷了 360 萬美元的營運資本票據。此外，我們也記錄了與本租約涵蓋的德州七處房產相關的 330 萬美元減損損失。

Clint will provide additional detail later in the call, transaction fees increased approximately $0.5 million related to lease transitions and amendments. Net income available to common shareholders increased by $10.2 million, primarily due to the increase in gain on sale and higher interest income from new investments, partially offset by higher interest expense, the previously discussed impairment loss, an increase in our provision for credit losses, as well as a decrease in rental income.

克林特將在稍後的電話會議中提供更多細節，與租賃過渡和修改相關的交易費用增加了約 50 萬美元。普通股股東可獲得的淨利潤增加了1020 萬美元，主要是由於銷售收益的增加和新投資的利息收入增加，部分被利息費用的增加、前面討論的減值損失、我們的信用損失撥備的增加所抵消，以及租金收入的減少。

Fully diluted FFO per share was $0.57 compared with $0.72. Excluding non-recurring items, which represents the write off of the working capital note, FFO per share was $0.66 compared with $0.72. The decrease in FFO, excluding nonrecurring items was due to higher interest expense, lower rental income and additional shares outstanding from sales and our ATM program, partially offset by higher interest income from new investments.

完全稀釋後的 FFO 每股價格為 0.57 美元，而每股價格為 0.72 美元。不包括非經常性項目（即營運資金票據沖銷），每股 FFO 為 0.66 美元，而每股 FFO 為 0.72 美元。 FFO 的減少（不包括非經常性項目）是由於利息支出增加、租金收入減少以及銷售和 ATM 計劃帶來的額外流通股，但部分被新投資的利息收入增加所抵消。

Now I'll recap our recent divestitures. In total, we sold nine properties with a combined 408 units for $29.6 million. We received proceeds of $24.6 million net of transaction costs and seller financing and recorded gains of approximately $17 million. Eight of the properties were part of our previously disclosed Brookdale transactions. Subsequent to the end of the fourth quarter, we sold our JV interest in a 110 unit assisted living community located in Wisconsin for $23.1 million, which yielded 8.12% to LTC in 2023.

現在我將回顧我們最近的資產剝離。我們總共出售了 9 處房產，共 408 套，售價為 2,960 萬美元。在扣除交易成本和賣方融資後，我們獲得了 2,460 萬美元的收益，並記錄了約 1,700 萬美元的收益。其中八處房產是我們先前披露的布魯克代爾交易的一部分。在第四季末後，我們以 2,310 萬美元的價格出售了位於威斯康辛州一個擁有 110 個單位的輔助生活社區的合資企業權益，2023 年，LTC 的收益率為 8.12%。

The purchase price includes the repayment of $2.4 million of rent credits given to the operator during New Construction lease-up and the path of a $550,000 working capital note. We received net proceeds of $19.6 million net of transaction costs, and we anticipate reporting a gain on sale of $4 million in the 2024 first quarter.

購買價格包括償還新建築租賃期間給予營運商的 240 萬美元租金抵免以及 55 萬美元的營運資金票據。扣除交易成本後，我們收到的淨收益為 1,960 萬美元，預計 2024 年第一季的銷售收益為 400 萬美元。

With the prepayment of the net credits we effectively received for 2024 rental income during the first quarter. However, in order to provide first quarter FFO guidance we normalized this $2.4 million of rent as a nonrecurring item. Also, during the fourth quarter, we sold approximately 1.6 million shares of common stock for net proceeds of $52 million under our ATM program.

透過預付淨積分，我們在第一季實際上收到了 2024 年租金收入。然而，為了提供第一季 FFO 指導，我們將這 240 萬美元的租金標準化為非經常性項目。此外，在第四季度，我們根據 ATM 計劃出售了約 160 萬股普通股，淨收益為 5,200 萬美元。

Subsequent to the end of the quarter, we sold approximately 91,000 shares of common stock for net proceeds of $2.9 million under the program. During the fourth quarter, we repaid $5 million in scheduled principal paydowns on our senior unsecured notes and paid $24 million in common dividends.

本季末後，我們根據該計劃出售了約 91,000 股普通股，淨收益為 290 萬美元。第四季度，我們償還了 500 萬美元的優先無擔保票據的預定本金償還額，並支付了 2,400 萬美元的普通股息。

Importantly, we repaid $60 million under our unsecured revolving line of credit, reducing our debt to annualized adjusted EBITDA for real estate from 6 times for the 2023 third quarter to 5.5 times for the 2023 fourth quarter. Subsequent to the end of the quarter, we repaid $30.5 million under our unsecured revolving line of credit reducing our 2023 fourth quarter debt to adjusted EBITDA for real estate ratio from 5.5 times to 5.4 times on a pro forma basis.

重要的是，我們根據無擔保循環信貸額度償還了 6,000 萬美元，將我們的房地產債務與年化調整後 EBITDA 之比從 2023 年第三季的 6 倍減少到 2023 年第四季的 5.5 倍。本季末後，我們根據無擔保循環信貸額度償還了 3,050 萬美元，減少了 2023 年第四季的債務，調整後的房地產 EBITDA 比率從預計的 5.5 倍降至 5.4 倍。

As Wendy mentioned earlier, by substantially reducing our leverage, LTC is better positioned for growth in 2024 and in the future. Additionally, subsequent to the end of the quarter, we amended our unsecured revolving line of credit to accelerate the one-year extension option notice date and exercised our option to extend the maturity date to November 19th, 2026. All other provisions of the agreement remain unchanged. Currently, we have $15 million of cash on hand, approximately $128 million available on our line of credit with roughly $272 million outstanding and about $73 million available under our ATM. This gives us total liquidity of almost $217 million.

正如 Wendy 之前提到的，透過大幅降低槓桿率，LTC 能夠更好地為 2024 年和未來的成長做好準備。此外，在本季末後，我們修改了無擔保循環信貸額度，以加快一年延期選擇權通知日期，並行使將到期日延長至 2026 年 11 月 19 日的選擇權。協議的所有其他條款保持不變。目前，我們手頭上有 1500 萬美元的現金，我們的信用額度上有大約 1.28 億美元的可用現金，未償還的現金大約有 2.72 億美元，我們的 ATM 上有大約 7300 萬美元的可用現金。這使我們的總流動資金接近 2.17 億美元。

Now I'll hand the mike over to Clint.

現在我將把麥克風交給克林特。

Thank you, Pam. I'll begin with a discussion of some of our operating partners starting with Brookdale. Aside from the eight properties sold from the original portfolio, Brookdale retained 17 of the properties under a new master lease, five properties were transitioned to an existing LTC operator, Oxford senior living in fiber transition to an operator new to LTC Navion Senior Solutions and bears repeating that through these successful transactions, we have more than replace the income that was generated from the original Brookdale portfolio through a combination of new leases in pre-investing sales proceeds.

謝謝你，帕姆。我將從布魯克代爾開始討論我們的一些營運合作夥伴。除了從原始投資組合中出售的8 處房產外，Brookdale 根據新的主租約保留了17 處房產，其中5 處房產已過渡到現有的LTC 運營商，Oxford Senior Living 光纖過渡到LTC Navion Senior Solutions 的新營運商，並承擔重申一下，透過這些成功的交易，我們透過預投資銷售收益中的新租賃組合取代了原始布魯克代爾投資組合所產生的收入。

Next, I'll discuss a 12 property non revenue generating portfolio, which has temporarily transitioned to ALG. in July 2022, following the COVID pandemic. ALG provided assistance by stepping out of their geographic footprint to quickly support us by operating these properties while we evaluated whether to sell them or transition them or some combination of both.

接下來，我將討論一個包含 12 個非創收財產的投資組合，該投資組合已暫時過渡到 ALG。 2022 年 7 月，新冠疫情大流行之後。ALG 提供了幫助，走出了他們的地理足跡，透過經營這些資產來快速支持我們，同時我們評估是否出售它們或過渡它們或兩者的某種組合。

This 12 property ALG mass release included eight properties in Texas and one each in Florida, Georgia, Mississippi and South Carolina. Majority of these properties are primarily located in small towns and were built in the 1990s, we sold to Florida and Mississippi communities during 2023. For the remaining 10 properties, we entered into an agreement to sell five of the Texas properties, closed a building in Texas during 2023, and plan to close a second Texas property in the near future.

ALG 大規模發布的 12 處房產包括德州的 8 處房產以及佛羅裡達州、喬治亞州、密西西比州和南卡羅來納州各 1 處房產。這些房產大部分位於小鎮，建於 2023 年，我們於 2023 年出售給佛羅裡達州和密西西比州社區。對於其餘10 處房產，我們簽訂了出售德克薩斯州其中5 處房產的協議，在2023 年期間關閉了德克薩斯州的一座建築，併計劃在不久的將來關閉德克薩斯州的第二處房產。

We then expect to sell two closed properties for alternative uses. After the end of the fourth quarter, we transitioned properties that were built in the last five to seven years in Georgia and South Carolina to an operator new to LTC legacy senior living. The lease term is for two years with two one-year extension options. Initial rent for the first six months of zero after which will be based on mutually agreed upon fair market rent master lease includes a purchase option that can be exercised in 2027 if the two one-year lease extensions are exercised.

然後，我們預計將出售兩處已關閉的房產以供其他用途。第四季末後，我們將過去五到七年在喬治亞州和南卡羅來納州建造的房產移交給了一家新的 LTC 傳統老年生活營運商。租賃期限為兩年，並有兩次一年的延期選擇權。前六個月的初始租金為零，此後將基於雙方商定的公平市場租金主租賃包括購買選擇權，如果執行兩次一年期租約，則可以在 2027 年行使購買選擇權。

Additionally, we agreed to fund up to $900,000 for capital expenditures for the first year of the lease and up to $240,000 for a working capital note at 8.25% maturing on December 31, 2025. We are currently working to transition the remaining property.

此外，我們同意為租賃第一年的資本支出提供高達 90 萬美元的資金，並為 2025 年 12 月 31 日到期的利率為 8.25% 的營運資本票據提供高達 24 萬美元的資金。我們目前正在努力過渡剩餘的財產。

To reiterate, the portfolio was non revenue generating a few words about Prestige Healthcare. As we previously disclosed, we amended procedures mortgage loan, which is secured by 15 skilled nursing centers in Michigan effective January 1, 2024 the minimum mortgage interest payment due to LTC is based on the annual current pay rate of 8.5% on the outstanding loan balance of $183 million. Contractual interest rate on the loan, 10.8%, remains unchanged.

重申一下，就 Prestige Healthcare 而言，該投資組合不會產生收入。正如我們之前披露的，我們修改了抵押貸款程序，該貸款由密西根州15 家熟練護理中心擔保，自2024 年1 月1 日起生效，LTC 的最低抵押貸款利息支付基於未償貸款餘額的當前年利率8.5% 1.83 億美元。貸款合約利率10.8%維持不變。

Additionally, the amendment gives LTC the right to draw on prestige security pay the difference between the contractual rate on the loan and the current pay rate. We received all 2023 contractual interest of $19.5 million due from proceeds, including drawing $3.4 million of security held by us.

此外，修正案賦予 LTC 有權利用信譽擔保支付貸款合約利率與當前工資率之間的差額。我們從收益中收到了 2023 年全部合約利息 1,950 萬美元，其中包括提取我們持有的 340 萬美元的擔保。

Subsequent to the end of the 2023 fourth quarter, Prestige increased our security using retroactive Medicaid payments received from the state of Michigan. We currently hold security of $4 million and expect that additional retroactive Medicaid payments to be received by Christie's later in 2024 will be remitted to LTCS. Securities. Full contractual interest has been paid on the loan through February 2024, and we expect to receive full contractual interest through at least 2025, including draws as needed from the security provided by the retroactive Medicaid payments.

2023 年第四季末後，Prestige 使用從密西根州收到的追溯醫療補助付款增強了我們的安全性。我們目前持有 400 萬美元的抵押品，預計佳士得將於 2024 年稍後收到的額外追溯醫療補助付款將匯給 LTCS。證券。貸款的全部合約利息已支付到 2024 年 2 月，我們預計至少到 2025 年將收到全額合約利息，包括根據需要從追溯醫療補助付款提供的擔保中提取。

Improvement in the performance of the properties will reduce the need to apply security held by us. Occupancy in this portfolio grew from 73% in September to 75% in January. Regarding our fourth quarter investment activity, we mentioned during the last quarter's call that we closed on a transaction to fund a $19.5 million mortgage loan at a yield of eight and three-quarter percent for the construction of an 85 unit assisted living and memory care community in Michigan. The borrower's equity has been fully drawn, so we began funding in the first quarter of this year.

財產績效的改善將減少我們持有的擔保的需要。該投資組合的入住率從 9 月的 73% 成長到 1 月的 75%。關於我們第四季度的投資活動，我們在上個季度的電話會議中提到，我們完成了一項交易，以8%又四分之三的收益率為1950 萬美元抵押貸款提供資金，用於建立一個擁有85 個單元的輔助生活和記憶護理社區在密西根州。借款人的股權已經全部提領完畢，所以我們從今年第一季開始融資。

Moving on to our assisted living portfolios with quarterly market base rent resets, which now include the two assisted living communities for whom we have been providing abated rent. We received $861,000 during 2023 and expect to receive $3.3 million in 2024. For our still portfolio transition to HMG., we received $8 million in rent during 2023. Subsequent to December 31, 2023, we amended the master lease to extend its term from February 1, 2024 to August 31, 2024. Rent was set at $4.7 million for the period, which annualizes to $8 million. We also extended the term of H & G's revolving line of credit to coincide with the new lease expiration.

接下來是我們的輔助生活投資組合，每季重新調整市場基本租金，其中包括我們一直為其提供減免租金的兩個輔助生活社區。我們在 2023 年收到了 861,000 美元，預計 2024 年收到 330 萬美元。為了將靜態投資組合過渡到 HMG，我們在 2023 年收到了 800 萬美元的租金。2023年12月31日後，我們修改了主租約，將其期限從2024年2月1日延長至2024年8月31日。該期間租金定為 470 萬美元，年化租金為 800 萬美元。我們也延長了 H & G 循環信貸額度的期限，以配合新的租賃到期。

Next, I'll provide insight into our portfolio numbers, which excludes properties transitioned on or after July first, 2022 Q3 trailing 12 month EBITDA arm and EBITDA coverage as reported using a 5% management fee was 1.23 times and 0.99 times, respectively, for our assisted living portfolio. Excluding stimulus funds received by our operators, coverage was 1.14 times and 0.9 times, respectively.

接下來，我將深入了解我們的投資組合數據，其中不包括2022 年7 月1 日或之後轉換的房產。使用5% 管理費報告的第三季度的12 個月EBITDA 臂和EBITDA 覆蓋率分別為1.23 倍和0.99 倍。我們的輔助生活組合。剔除業者收到的刺激資金，覆蓋率分別為1.14倍和0.9倍。

For our skilled nursing portfolio, as reported, EBITDARM and EBITDAR coverage was 1.96 times and 1.47 times, respectively. Excluding stimulus funds received by our operators, coverage was 1.68 times and 1.19 times respectively. Pro forma for the 4% Medicare market basket rate increase, skilled nursing EBITDAR coverage, excluding stimulus funds, would have been 1.24 times.

據報道，對於我們的熟練護理組合，EBITDARM 和 EBITDAR 覆蓋率分別為 1.96 倍和 1.47 倍。剔除業者收到的刺激資金，覆蓋率分別為1.68倍和1.19倍。預計醫療保險市場籃子利率增加 4%，熟練護理人員的 EBITDAR 覆蓋率（不包括刺激資金）將是 1.24 倍。

Now for some recent general occupancy trends, which are as of January 31, and are for our same-store portfolio. These numbers include approximately 65% of our total same-store private pay units and approximately 78% of our same-store skilled nursing beds. Private pay occupancy was 87% at January 31, 2024. 87% September 30, 2023, and 85% at June 30.

現在讓我們來看看截至 1 月 31 日的一些近期整體入住趨勢，這些趨勢適用於我們的同店組合。這些數字包括我們同店私人付費單位總數的約 65% 和同店熟練護理床位的約 78%。截至 2024 年 1 月 31 日，私人付費入住率為 87%。2023 年 9 月 30 日為 87%，6 月 30 日為 85%。

For our skilled nursing portfolio, average monthly occupancy was 76% in January, 75% in both September and June. As for the pipeline, we are working to rebuild it with accretive and strategic investments. The majority of our investments during 2024 are expected to be back-end loaded in terms of how we're thinking about the current market and potential opportunities. Bank maturities will likely be in the billions of dollars this year and in many cases, banks are highly selective and only we'll work with existing customers that are willing and able to put up higher reserves.

對於我們的熟練護理人員組合，1 月份的平均每月入住率為 76%，9 月和 6 月均為 75%。至於管道，我們正在努力透過增值和戰略投資來重建它。就我們如何看待當前市場和潛在機會而言，我們 2024 年的大部分投資預計將在後端進行。今年銀行的到期日可能會達到數十億美元，在許多情況下，銀行都是高度選擇性的，只有我們才會與願意並能夠提供更高準備金的現有客戶合作。

The bottom line for LTC is that we believe we are in a good position to grow and further diversify our portfolio. We believe our structure finance platform offers interesting solutions to complement triple net acquisitions in joint ventures and that as a result of the current lending environment, we can grow relationships with regional operators with whom we don't already have a relationship.

LTC 的底線是，我們相信我們處於有利的地位，可以實現我們的投資組合的成長和進一步多元化。我們相信，我們的結構融資平台提供了有趣的解決方案，可以補充合資企業的三重淨收購，並且由於當前的貸款環境，我們可以與尚未建立關係的區域運營商發展關係。

Now I will turn the call back to Wendy for her closing remarks.

現在我將把電話轉回給溫迪，讓她發表結束語。

Thank you, Pam and Clint. After some major accomplishments in 2023 and strengthening our portfolio and balance sheet, we believe LTC is well positioned to capture current opportunities.

謝謝你們，潘姆和克林特。在 2023 年取得一些重大成就並加強我們的投資組合和資產負債表之後，我們相信 LTC 已做好充分準備來抓住當前機會。

Thank you, everyone. We appreciate your continued support, and we'll talk to you again next quarter.

謝謝大家。我們感謝您持續的支持，我們將在下個季度再次與您交談。

Operator, we are now ready to take questions.

接線員，我們現在準備好回答問題。

(Operator Instructions) Austin Wurschmidt, KeyBanc Capital Markets.

（操作員說明）Austin Wurschmidt，KeyBanc 資本市場。

And good morning, everybody. I'm just wanted to first hit on the quarterly first quarter guidance and just curious what the biggest factors are driving the delta between what you achieved in the fourth quarter and the guidance that you put out for the first quarter, $0.63, $0.64.

大家早安。我只是想先談談第一季的季度指導，只是想知道推動第四季實現的目標與第一季指引（0​​.63 美元、0.64 美元）之間差異的最大因素是什麼。

It's Pam. It's primarily coming from a decrease in revenue from property sold and then the dilution from the ATM issuance.

是帕姆。這主要是由於出售房產的收入減少，以及 ATM 發行帶來的稀釋。

Is there anything from an excess rent payment that's also having an impact there from -- you received over 100% believe in the fourth quarter I'm just curious how much of an impact there is or any other considerations in the first quarter as we think about then the run rate through the balance of the year.

超額租金支付是否也會產生影響——您在第四季度獲得超過 100% 的信任，我只是好奇第一季度的影響有多大，或者我們認為第一季有任何其他考慮因素大約是當年剩餘時間的運轉率。

Right. So we did normalize in the first quarter and the guidance we did normalize the on the year of rent that we received for the property that was sold. And then in the fourth quarter, I think you're referring to the Prestige deferred interest. We've received, the $1.5 million, that was recorded on the effective interest method, which is a strip essentially straight line for interest income. So there was no effect from that. And in FFO and FAD, yes, there's a pickup of $1.5 million, but in FFO, there is nothing that would change that run rate.

正確的。因此，我們確實在第一季實現了正常化，我們的指導也使我們收到的出售房產當年的租金正常化了。然後在第四季度，我認為你指的是 Prestige 遞延利息。我們收到了 150 萬美元，這是按照實際利率法記錄的，該法基本上是一條直線的利息收入。所以沒有任何影響。在 FFO 和 FAD 中，是的，增加了 150 萬美元，但在 FFO 中，沒有什麼可以改變運行率。

Got it. That's helpful. And then just switching over to the HMG. portfolio, you guys have talked a lot about this pushing out the lease on a on a sort of temporary basis, but what are sort of the thoughts on how you plan to keep the assets on the current master lease? Or are you still considering selling some of those assets? And then as it stands today, I mean, can you can you kind of put a little bit of a ring fence around or bookend where you think potential upside is currently within that lease? And that is there even further upside if the reimbursement environment is more favorable than today?

知道了。這很有幫助。然後切換到 HMG。投資組合，你們已經談論了很多關於臨時推遲租約的事情，但是對於您計劃如何將資產保留在當前主租約上有什麼想法？或者您仍在考慮出售其中一些資產？然後就目前情況而言，我的意思是，您能否在您認為當前租約內存在潛在上升空間的地方放置一些環形圍欄或書立？如果報銷環境比現在更有利，還會有進一步的好處嗎？

Sure. This is clients. One of the items for doing the ARM seven month extension is HMG. has asked us to look at re-tenanting or selling two of the properties. So we're going through that evaluation right now, and that was the primary reason for extending just for seven months.

當然。這是客戶。HMG 是 ARM 延長七個月的專案之一。要求我們考慮重新出租或出售其中兩處房產。所以我們現在正在進行評估，這是延長七個月的主要原因。

Tom, we do believe there is upside in this portfolio on we're not sure exactly of the timing and how much. But we do believe there's definitely room that we should be participating in the cash flow on the cell to set a more permanent rent but we have a constant rent growth.

湯姆，我們確實相信這個投資組合有上行空間，但我們不確定確切的時間和多少。但我們確實相信，我們肯定有空間參與單位的現金流，以設定更永久的租金，但我們的租金持續成長。

Even if you sell those two assets in the --?

即使您出售這兩項資產——？

Right now, the -- while these two assets are waiting, whether we sell or re-tenant that recurrently collectively positive cash flow on cell. It's not that they are a negative drain to H&G. is maybe more geographic based so on. I think that gives us optionality that it.

現在，當這兩項資產正在等待時，無論我們是出售還是重新租賃，電池上的經常性集體正現金流。這並不是說它們對 H&G 造成負面影響。可能更多基於地理等等。我認為這給了我們選擇權。

But do you think you can sustain the $8 million run rate then if those two assets get sold or -- (multiple speakers)

但如果這兩項資產被出售，你認為你能維持 800 萬美元的運作率嗎？——（多位發言者）

I think we get zoning -- Yeah, I think on a net basis we sell at the other three assets. And when we could redeploy those dollars that I think on a net basis, yes, we would be at $8 million at a minimum.

我認為我們進行了分區——是的，我認為在淨額基礎上我們出售其他三項資產。當我們可以重新部署這些美元時，我認為在淨額基礎上，是的，我們至少會達到 800 萬美元。

That's helpful. And then just last one for me. I'm just curious, you guys were active on the ATM this quarter brought down leverage. I mean, should should we expect that you want to continue to drive down leverage? Or would you think about further deleveraging from here more so from over equitizing on future investments?

這很有幫助。然後是我的最後一個。我只是很好奇，你們本季在 ATM 上表現活躍，降低了槓桿率。我的意思是，我們是否應該期望你們繼續降低槓桿？或者您會考慮從這裡進一步去槓桿化，尤其是透過未來投資的過度股權化？

Yes, probably the latter. We know we have some loans. If you look at the maturity of the loan receivable maturity schedule in the supplemental, we have about $80 million coming due to us this year. So that naturally deleverages us down to five times by the end of the year, which is around our long-term target. But yes, we would look to over equitize investments as well.

是的，可能是後者。我們知道我們有一些貸款。如果你看一下補充資料中應收貸款到期時間表的到期情況，你會發現今年我們應付的金額約為 8000 萬美元。因此，到今年年底，我們自然會去槓桿化至五倍，這接近我們的長期目標。但是，是的，我們也會尋求過度股權化投資。

Rich Anderson, Wedbush.

里奇安德森，韋德布希。

Thanks. Good morning. I'm and I get my thoughts together here on the ALG portfolio that was paying you zero? Correct, Clint, prior to all this?

謝謝。早安.我和我在這裡就 ALG 投資組合的想法進行了交流，該投資組合支付給您的費用為零？對嗎，克林特，在這一切之前？

Correct. Prior to the transition to ALG, it was paying us zero.

正確的。在過渡到 ALG 之前，它向我們支付的費用為零。

Okay. And so now you go through all these these steps. Do I have this right? You'll be left probably two operating assets.

好的。現在您將完成所有這些步驟。我有這個權利嗎？您可能會剩下兩項營運資產。

So we'll be left with three. So two, we've already transitioned to a new operator at the end of the year. And then we have one remaining property to transition and those three buildings or then those three buildings are the newer buildings of the 12 property master lease.

這樣我們就剩下三個了。第二，我們已經在今年年底過渡到新的營運商。然後我們還有一處剩餘房產需要過渡，而這三棟建築或那三棟建築是 12 處房產主租賃中較新的建築。

Two to legacy and one to go and zero rent for the first six months on those two?

兩個留給遺產，一個離開，這兩個的前六個月零租金？

Correct.

正確的。

Okay. So there's no downside in 2024 from this then, right. As you get anything from those three, it's positive from --?

好的。所以到 2024 年這並沒有什麼負面影響，對吧。當你從這三者中得到任何東西時，它是積極的——？

As I say, non-revenue-generating. Correct.

正如我所說，不創收。正確的。

Okay. And then on prestige collected the $19.5 million, including -- I think you said a $3.4 million draw last year. They've added to that to replenish that through the retroactive Medicaid. Did you say how much that how much more your security deposit is now and above? That's question number one.

好的。然後，Prestige 抽到了 1950 萬美元，包括——我想你說去年抽獎了 340 萬美元。他們增加了這一點，以透過追溯醫療補助來補充這一點。您是否說您的保證金現在及以上是多少？這是第一個問題。

So we were at $5 million previously. We're now at $4 million after we drew on the letter of credit and then they replenished a letter of credit. So net change down $1 million. We're current on contractual interest through February of 2024.

所以我們之前的價格是 500 萬美元。在我們提款了信用證之後，他們又補充了信用證，現在我們的收入是 400 萬美元。因此淨變化減少了 100 萬美元。我們目前的合約利息截至 2024 年 2 月。

Okay. So that contractual interest is some combination of real payment -- interest payment and draws -- on future draws and security? Correct?

好的。那麼合約利息是實際支付（利息支付和提款）對未來提款和擔保的某種組合？正確的？

Correct. The current pay is 8.5% and then we can draw on the security to reach the contractual interest payment on.

正確的。目前的支付率為8.5%，然後我們可以動用擔保來支付合約利息。

Okay. And when do you think that you're going to get away from security deposit draws --?

好的。你什麼時候認為你可以擺脫保證金提取——？

So as the -- we've given them effectively a 2.5 year runway to improve operations, occupancy, improve margins. So they're doing -- they are paying us 8.5% current pay from cash flow generated from the portfolio. And as they get retroactive funds, they provide those to us to increase the security on starting in 2025, incremental to the retroactive Medicaid funds, we get 50% of some of the excess cash flow. So as the buildings perform better, we contribute or we also participate in the cash flows in that mechanism. So as operations improve, we have less draws on our security.

因此，我們實際上為他們提供了 2.5 年的跑道，以改善營運、入住率、提高利潤率。所以他們正在這樣做——他們從投資組合產生的現金流中向我們支付 8.5% 當前工資。當他們獲得追溯資金時，他們會向我們提供這些資金，以增加從 2025 年開始的安全性，在追溯醫療補助資金的基礎上，我們獲得了部分超額現金流的 50%。因此，當建築物表現較好時，我們會貢獻或參與機制中的現金流。因此，隨著營運的改善，我們對安全的依賴就會減少。

Okay. Okay, great. And then on the run rate, the $0.63 to $0.64, excluding the nonrecurring rent, how -- would you call that a kind of a floor to the year? Is there any reason why that might trickle down from here for whatever reason may be through ATM draws or whatever, temporarily speaking or do you see this is sort of like a jumping off point and you're likely to see more of a quarterly sequential ramp from that level?

好的。好的，太好了。然後就運行費率而言，0.63 美元到 0.64 美元，不包括一次性租金，您如何將其稱為年度下限？是否有任何原因可能會因為任何原因通過 ATM 提款或其他方式從這裡流下來，暫時來說，還是您認為這有點像一個起點，您可能會看到更多的季度連續斜坡從那個水平？

Yes, I think it's probably more of a floor than on than a run rate for the year, but that remains to be seen I mean, we're very bullish on the investment outlook for the year. So that would add to it. We give a base case scenario given no additional investments on. So anything above what we have right now would be accretive even even over equitizing.

是的，我認為這可能更多的是今年的下限，而不是運行率，但這還有待觀察，我的意思是，我們非常看好今年的投資前景。所以這會增加它。我們給了一個沒有額外投資的基本案例場景。因此，即使超過股票化，任何高於我們現在所擁有的都將是增值的。

If you assume zero future acquisitions, it's still it still trickles up right through escalations and so on.

如果你假設未來的收購為零，那麼它仍然會透過升級等方式逐漸增加。

It does. That is correct. And those hit more in the back half of the year.

確實如此。那是對的。這些在今年下半年受到更多打擊。

Yes, but there's nothing sort of sinisterly behind the scenes that's look waiting to lower that number for one reason or another, nothing kind of onetime-ish that you see coming, it's basically pretty go pretty visible path from this point going forward?

是的，但是幕後並沒有什麼險惡的事情等著因為這樣或那樣的原因降低這個數字，沒有什麼你看到的一次性的事情，從現在開始，基本上是相當明顯的道路？

Yes, correct. Our crystal ball right now does not have anything looming out there on the phone.

是，對的。我們的水晶球現在在手機上沒有任何隱約可見的東西。

Michael Carroll, RBC.

麥可卡羅爾，加拿大皇家銀行。

Yes, thanks. I wanted to circle back to HMG. just to confirm the rest of the portfolio minus those two assets that they are happy with, and how it fits within their geographic footprint and how they want to keep those properties going forward once you kind of figure out what to do with those other two properties?

對了謝謝。我想回到 HMG。只是為了確認投資組合的其餘部分減去他們滿意的兩項資產，以及它如何適應他們的地理足跡，以及一旦你弄清楚如何處理其他兩項資產，他們希望如何保持這些資產繼續發展？

Correct. Yes, I mean -- they've identified these two buildings where they are cash flow positive on. So we're in discussion with them on on how we approach those two. But they have approached us about a possibility of transitioning to. But again, the two collectively are cash flow positive.

正確的。是的，我的意思是——他們已經確定這兩棟建築的現金流為正。因此，我們正在與他們討論如何處理這兩個問題。但他們已經就過渡到的可能性與我們接洽。但同樣，兩者的現金流都是正值。

And then once those two get transitioned away, would you be in a position to create a longer-term lease with HMG. or are you still waiting for that portfolio to recover before you set a longer-term lease with more of a permanent rental rate we have to see more tracked.

然後，一旦這兩個人離開，您是否能夠與 HMG 簽訂長期租約。或者您是否仍在等待該投資組合恢復，然後再製定具有更多永久租金率的長期租賃，我們必須看到更多追蹤。

We think there's more upside in occupancy and performance. So we definitely feel there's more room for growth. So we want to participate in that.

我們認為入住率和性能還有更大的上升空間。所以我們肯定覺得還有更多的成長空間。所以我們想參與其中。

And then how how are those assets performing? I know that they took over those, was it early 2023 when they took those over on I guess, how have they recovered since they've been operating them.

那麼這些資產的表現如何呢？我知道他們接管了這些，我想他們是在 2023 年初接管的，自從他們開始運作以來，他們恢復得怎麼樣了。

It was 21 after they took over. Occupancy has been fairly flat, but they've improved. Our labor agency utilization has gone down. So cash flow has improved, but occupancy has been a little bit flat. So that's really where we see the potential for growth. Is that occupancy gains.

他們接手後已經是21點了。入住率相當平穩，但有改善。我們的勞工機構利用率下降。因此，現金流有所改善，但入住率卻有些持平。所以這確實是我們看到成長潛力的地方。這就是入住率的成長。

Okay. And I know that the I mean, I guess on C's contractual rent was significantly higher. I mean, should when you kind of set a new rate, is it going to be closer to that $14 million, $15 million run rate or is it going to be closer to $8 million run rate?

好的。我知道我的意思是，我猜 C 的合約租金要高得多。我的意思是，當你設定一個新的費率時，它會更接近 1400 萬美元、1500 萬美元的運行費率，還是會更接近 800 萬美元的運行費率？

Somewhere in between. I don't think you're going to get all the way back to the [$14 million and $8 million].

中間某個地方。我不認為你會一路回到原來的地方[1400萬美元和800萬美元]。

Okay. And then just last one for me on on investments. I know you kind of touched on this a little bit. So what on the investment side are you looking at more intently right now, and it sounded like you are more interested on the loans. Is that correct? Or is it are you seeing a lot of different opportunities on the real estate too.

好的。最後一篇是關於投資的。我知道你有點觸及這個問題。那麼，您現在更關注投資方面的哪些方面，聽起來您對貸款更感興趣。那是對的嗎？或者您也在房地產領域看到了很多不同的機會？

I think a lot of different opportunities. I think that people are speaking to are looking to work with stable capital providers come in. So it for us, it's going to be looking at loans, mez preferred equity on joint ventures, acquisitions and triple nets a little bit of everything. So I think we're going to be considering and looking at a lot of opportunities.

我認為有很多不同的機會。我認為人們正在尋求與穩定的資本提供者合作。因此，對我們來說，它將關注貸款、合資企業的夾層優先股、收購和三重網等等。所以我認為我們將考慮並尋找很多機會。

Connor Siversky, Wells Fargo.

康納‧西弗斯基，富國銀行。

Hey, good morning, guys. On for Canada this morning. Thanks for taking the question. I just can you it most of my questions have kind of been asked at this point. Can you quickly go over what you're seeing in the watch list, it seems like ALG. was a unique situation given COVID and proceeds from some. You've seems to be that you guys are pretty comfortable with the level of visibility you have with them the way you structured that contract and the anticipated Medicaid rate increases you restructured that for what else are you seeing out there just in the upfront.

嘿，早上好，夥計們。今天早上前往加拿大。感謝您提出問題。我只能告訴你，我的大部分問題都已經被問到了。您能快速瀏覽一下您在觀察清單中看到的內容嗎？看起來像 ALG。考慮到新冠疫情和一些人的收益，這是一個獨特的情況。你們似乎對你們對他們的可見性水平非常滿意，你們構建合約的方式和預期的醫療補助費率增加你們重組了你們在前期看到的其他東西。

We bought resolution to a lot of items. So the Brookdale lease transition, Prestige, we're working through the energy transition, and we spoke about H. and G. So those are our main focuses and we're talking about growth. So I think that is a positive aspect of where we are at on our focuses and also in the transition portfolio, we're seeing upward movement in recovering on rental income. So those are all positives.

我們購買了很多項目的解決方案。因此，布魯克代爾租賃過渡、Prestige，我們正在努力實現能源轉型，我們談到了 H. 和 G。所以這些是我們的主要關注點，我們正在談論成長。因此，我認為這是我們關注的重點以及轉型投資組合的一個積極方面，我們看到租金收入的恢復呈上升趨勢。所以這些都是正面的。

Great. Appreciate the color. And just a quick modeling one to make sure I'm kind of buttoned up here with the post quarter acquisitions and dispositions. So some there was a bunch of moving parts here post post quarter here. Can you go over any anticipated acquisitions and disposition activity that have closed so far in 1Q are expected to close in the near term for the LG., it looks like you've got $1.6 million in proceeds. You're anticipating from five properties and another one that's expected to be sold as well. Anything else kind of to think about that's expected to close near term as we're kind of buttoning up the models here?

偉大的。欣賞顏色。只是一個快速建模，以確保我對季度後的收購和處置有所了解。所以有些人在季度後這裡有很多活動部件。您能否回顧一下 LG 預計在第一季度到目前為止已完成的任何預期收購和處置活動，預計將在短期內完成。看起來您已經獲得了 160 萬美元的收益。您預計有五處房產，還有另一處預計也會出售。當我們在這裡搞定模型時，還有什麼需要考慮的事情預計會在近期結束嗎？

No, nothing every everything that we have on deck right now we've talked about. So nothing nothing beyond that right now.

不，我們現在所討論的一切都沒有。所以現在沒有比這更重要的了。

Your next question is coming from [Marcus Neve], a private investor.

您的下一個問題來自私人投資者 [Marcus Neve]。

Marcus, your line is live. Marcus, if you have a question, please, and I would say your line is live. (Operator Instructions) It seems like the speaker line dropped just one moment while we reconnect.

馬庫斯，您的線路已上線。馬庫斯，如果您有問題，請說，我想說您的線路已上線。（操作員說明）在我們重新連接時，揚聲器線似乎只掉了一會兒。

No, we're here.

不，我們來了。

We have reached the end of the question and answer session. I'll turn the call over to Wendy for closing remarks.

我們的問答環節已經結束。我將把電話轉給溫迪做結束語。

Thank you, operator. And we look forward to talking to you at the end of this first quarter. And we appreciate the time you've taken to listen to us today. Have a great weekend. Bye-bye.

謝謝你，接線生。我們期待在第一季末與您交談。我們感謝您今天抽出時間來聆聽我們的演講。週末愉快。再見。

Thank you. This does conclude today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，此時您可以掛斷電話。感謝您的參與。