LTC Properties Inc (LTC) 2024 Q1 法說會逐字稿

Good day and welcome to the LTC Properties Incorporated first quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode and 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. Please note this conference is being recorded 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, and these risks and uncertainties are updated sorry, are detailed in LTC's property filings with the Securities and Exchange Commission from time to time, including the Company's most recent 10-K dated December 31, 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.

美好的一天，歡迎參加 LTC Properties Incorporated 2024 年第一季財報電話會議。此時，所有參與者都處於僅聽模式，正式演示之後將進行問答環節。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。請注意，本次會議正在管理層開始演示之前進行錄製。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出現重大差異，這些風險和不確定性已更新，抱歉，詳細信息請請參閱LTC 的財產備案文件不時向證券交易委員會提交，包括公司日期為 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 to call over to Wendy Simpson. Ma'am, the floor is yours?

我現在想打電話給溫迪辛普森。女士，地板是妳的嗎？

Thank you, operator, and welcome, everyone, to LTC's 2024 first 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. In 2023, we completed more than $260 million in investments, all while our team devoted significant amount of time to optimizing our portfolio.

謝謝業者，歡迎大家參加 LTC 2024 年第一季電話會議。今天與我一起出席的還有聯合總裁兼財務長 Pam Kessler 和聯合總裁兼首席投資長克林特馬林 (Clint Malin)。2023 年，我們完成了超過 2.6 億美元的投資，同時我們的團隊投入了大量時間來優化我們的投資組合。

Now after successfully selling $77 million of assets last year and re-tenanting others, we are concentrating our efforts on producing strategic, long-term and sustainable growth, which is our key focus for 2024. With that in mind, we are evaluating multiple investment opportunities and are confident we have both the bandwidth and resources necessary to strategically allocate capital to enhance our portfolio and achieve the best risk adjusted returns for our shareholders.

現在，在去年成功出售 7,700 萬美元的資產並重新租賃其他資產後，我們正集中精力實現策略性、長期和可持續的成長，這是我們 2024 年的重點。考慮到這一點，我們正在評估多種投資機會，並相信我們擁有策略性分配資本所需的頻寬和資源，以增強我們的投資組合，並為股東實現最佳的風險調整回報。

Seniors housing and care industry is on a promising upturn after setbacks related to COVID, thanks to favorable demographic trends, improving margins and rising occupancy rates all signs point to a more robust market. We also are encouraged by the reimbursement landscape, particularly with the anticipated 4.1% increase under the snus payment rule for fiscal 2025. Reimbursement in several states also is expected to rise in Florida where we own seven centers, our operators will benefit from an unprecedented 8% Medicaid rate increase, which will result in increased coverage for LTC last week as expected CMS issued its final Smith minimum staffing rules. Our industry pushed back on the proposed rule during the comment period with more than 46,000 letters, mainly related to the concerns that the mandate is unfunded and that the level of staff required simply does not exist. According to the American Healthcare Association, 81% of skilled nursing centers do not currently meet the rural staffing requirements. We will continue to monitor the situation and support industry organizations and initiatives to oppose this rule.

在經歷了與新冠疫情相關的挫折之後，老年人住房和護理行業正迎來光明的好轉，這要歸功於有利的人口趨勢、利潤率的提高和入住率的上升，所有跡像都表明市場更加強勁。我們也對報銷情況感到鼓舞，特別是根據 2025 財年鼻煙支付規則預計將增加 4.1%。佛羅裡達州的幾個州的報銷預計也會增加，我們擁有七個中心，我們的運營商將受益於前所未有的8% 醫療補助費率上漲，這將導致上週LTC 的覆蓋範圍增加，因為預計CMS會發布其最終的史密斯最低人員配置規則。我們的行業在徵求意見期間收到了 46,000 多封信函，反對這項擬議規則，主要與擔心該任務沒有資金以及根本不存在所需的員工水平有關。根據美國醫療保健協會的數據，81% 的熟練護理中心目前未滿足農村人員配備要求。我們將繼續關注事態發展，並支持反對這項規定的產業組織和倡議。

Looking ahead to the second quarter, we expect FFO and FFO, excluding nonrecurring items, to range between $0.65 and $0.66 per share. We also are introducing full year 2024 guidance, which assumes no additional investment activity asset sales financing or equity issuances, but does assume our loan receivables payoff at maturity and includes the rent increase associated with an HMG. lease amendment.

展望第二季度，我們預計 FFO 和 FFO（不包括非經常性項目）將在每股 0.65 美元至 0.66 美元之間。我們也推出了 2024 年全年指引，該指引假設沒有額外的投資活動、資產銷售融資或股票發行，但假設我們的應收貸款到期償還，並包括與 HMG 相關的租金上漲。租約修訂。

FFO, excluding non-recurring items, is expected to be between $2.63 and $2.65 per share for the full year. Nonrecurring items include the payment of rent related to a property sale in January and $900,000 of credit reserves that get reversed as loans pay off.

不包括非經常性項目的 FFO 預計全年每股收益在 2.63 美元至 2.65 美元之間。非經常性項目包括支付與 1 月份房產銷售相關的租金以及 90 萬美元的信貸準備金，這些準備金會隨著貸款還清而轉回。

In summary, as we redirect our efforts towards strategic growth, the entire LTC team is geared up for a highly productive 2024.

總之，當我們將努力轉向策略成長時，整個 LTC 團隊已做好準備，迎接 2024 年的高生產力。

For now, I'd like to turn the call over to Pam.

現在，我想把電話轉給帕姆。

Thank you, Wendy. Can all numbers I'll discuss today are for the first quarter of 2024 compared with the first quarter of 2023, unless otherwise stated, total rental revenue increased by $1.8 million due to several factors. First, the receipt of $2.4 million of rent in connection with the sale of a property in Wisconsin in the 2024 first quarter. Second, a property acquisition in Ohio in the 2023 second quarter. Third, more rent paid by HMG. and last annual escalations and other lease adjustments. The increases were partially offset by lower rent related to property sales and operator transitions. Interest income from sale leaseback financing was comparable year-over-year, but interest income from mortgage loans increased by $1.2 million, principally related to mortgage loan originations in 2023 and the funding of a construction loan in 2024. Interest and other income decreased by $1.2 million, primarily due to the payoff of two mezzanine loans and the related exit IRR and prepayment fee received in 2023, partially offset by income from mezzanine loan origination in the third quarter of 2023. Interest expense increased by $436,000, mainly due to higher interest rates and a higher outstanding balance on our revolving line of credit, partially offset by scheduled principal paydowns on our senior unsecured notes.

謝謝你，溫迪。我今天要討論的所有數字都是 2024 年第一季與 2023 年第一季相比，除非另有說明，由於多種因素，總租金收入增加了 180 萬美元。首先，與 2024 年第一季出售威斯康辛州房產相關的 240 萬美元租金。其次，2023 年第二季在俄亥俄州收購房產。第三，HMG支付更多租金。以及去年的升級和其他租賃調整。與房地產銷售和營運商轉型相關的租金下降部分抵消了這一增長。售後回租融資的利息收入與去年同期相當，但抵押貸款的利息收入增加了 120 萬美元，主要與 2023 年抵押貸款發放和 2024 年建築貸款融資有關。利息和其他收入減少了 120 萬美元，主要是由於 2023 年收到的兩筆夾層貸款以及相關退出 IRR 和預付款費用的償還，部分被 2023 年第三季夾層貸款發放的收入所抵消。利息支出增加了 436,000 美元，主要是由於利率上升和我們循環信貸額度的未償餘額增加，部分被我們高級無擔保票據的預定本金償還所抵消。

Our provision for credit losses decreased by $1.7 million, mostly due to a higher dollar volume of loan originations in the prior year first quarter upon origination, we recorded loan loss reserve estimate equal to 1%, which amortizes as loan principal is repaid. Net income available to common shareholders decreased by $8.9 million, primarily due to lower gains on sale of real estate compared with last year's first quarter, as well as the receipt of exit IRR. and prepayment fees in connection with mezzanine loan payoffs in last year's period. This was partially offset by an increase in rental income, higher interest income from loan originations and a lower provision for credit loss. Fully diluted FFO per share was $0.69 compared with $0.66 excluding nonrecurring items, FFO per share was $0.64 compared with $0.67. The decrease in FFO, excluding nonrecurring items, was principally due to dilution from sales under our ATM program, the proceeds of which were used to fund investments and reduce our leverage. During the quarter, we sold a total of six properties in Florida and Texas with 268 combined units and sold our interest in a joint venture in Wisconsin. The combined sales price was $26.3 million. We received proceeds of $25.4 million net of transaction costs and recorded gains of approximately $3.3 million. You can find more details about these sales in the press release we issued yesterday afternoon. Subsequent to the end of the first quarter of 2024. We sold two assisted living communities in Texas with a combined 70 units that were built in 1995 and previously have been closed. The combined sales price was 500,000, and we received approximately 400,000 of proceeds net of transaction costs. During the first quarter, we funded $2.9 million of a previously disclosed $19.5 million mortgage loan commitments for the construction of an assisted living and memory care community in Michigan. Ltc's investment represents 62% of estimated cost project costs during the first quarter, we sold approximately 139,000 shares of LTC common stock for net proceeds of $4.5 million under our ATM program. Subsequent to the end of the quarter, we sold approximately 205,000 additional shares of common stock for $6.5 million in net proceeds. Proceeds from the ATM sales were used for investments and to reduce our leverage. Additionally, we repaid $25.2 million under unsecured revolving line of credit and repaid $6 million in scheduled principal paydowns on our senior unsecured notes. We also paid $24.6 million in common dividends, marking our 216th consecutive monthly dividend payment, which continued throughout the pandemic. When other health care reach decreased FARES. Our debt to annualized adjusted EBITDA for real estate stands at 5.5 times, and our annualized adjusted fixed charge coverage ratio was 3.5 times. Although our debt to annualized adjusted EBITDA for real estate metric remains higher than our long-term target, we anticipate we will achieve this metric by year end as a result of recent investments, anticipated paydowns on our line of credit, using proceeds from loan payoffs and scheduled principal paydowns on our senior unsecured notes. You can find more detail about our loan receivable maturities on page 12 of our supplemental. Currently, we have total liquidity of nearly $197 million, including $9 million of cash on hand $123 million available on our line of credit with $277 million outstanding and roughly $65 million available under our ATM.

我們的信貸損失撥備減少了 170 萬美元，主要是由於上一年第一季貸款發放量增加，我們記錄的貸款損失準備金估計為 1%，隨著貸款本金的償還而攤銷。普通股股東可獲得的淨利潤減少了 890 萬美元，主要是由於與去年第一季相比，房地產銷售收益較低，以及退出 IRR 的收入減少。與去年同期償還夾層貸款有關的預付款項費用。這被租金收入的增加、貸款利息收入的增加以及信貸損失撥備的減少所部分抵消。完全稀釋後的每股 FFO 為 0.69 美元，而不計非經常性項目的每股 FFO 為 0.66 美元，每股 FFO 為 0.64 美元，而每股為 0.67 美元。 FFO 的減少（不包括非經常性項目）主要是由於我們 ATM 計劃下的銷售稀釋，該計劃的收益用於為投資提供資金並降低我們的槓桿率。本季度，我們總共出售了佛羅裡達州和德克薩斯州的六處房產，總計 268 套，並出售了威斯康辛州一家合資企業的權益。總售價為 2630 萬美元。扣除交易成本後，我們收到了 2,540 萬美元的收益，並記錄了約 330 萬美元的收益。您可以在我們昨天下午發布的新聞稿中找到有關這些銷售的更多詳細資訊。2024年第一季末後。我們出售了德克薩斯州的兩個輔助生活社區，共有 70 個單元，這些單元建於 1995 年，此前已關閉。總售價為 500,000，扣除交易成本後，我們收到約 40 萬的收益。第一季度，我們為密西根州建設輔助生活和記憶護理社區提供了 290 萬美元的資金，其中先前披露的 1,950 萬美元抵押貸款承諾。Ltc 的投資佔第一季預計專案成本的 62%，我們根據 ATM 計劃出售了約 139,000 股 LTC 普通股，獲得了 450 萬美元的淨收益。本季末後，我們額外出售了約 205,000 股普通股，獲得 650 萬美元的淨收益。ATM 銷售收入用於投資並降低我們的槓桿率。此外，我們還根據無擔保循環信貸額度償還了 2,520 萬美元，並以優先無擔保票據的預定本金償還了 600 萬美元。我們還支付了 2460 萬美元的普通股息，這是我們連續 216 個月支付股息，這種情況在整個大流行期間持續進行。當其他醫療保健達到降低票價時。我們的房地產債務與年化調整後 EBITDA 比率為 5.5 倍，年化調整後固定費用覆蓋率為 3.5 倍。儘管我們的房地產債務與年化調整後 EBITDA 指標仍然高於我們的長期目標，但由於最近的投資、我們信貸額度的預期還款以及使用貸款還款收益，我們預計到年底我們將實現這一指標以及我們的優先無擔保票據的預定本金償還。您可以在我們的補充資料第 12 頁找到有關我們的應收貸款到期日的更多詳細資訊。目前，我們的流動性總額接近 1.97 億美元，其中包括 900 萬美元的手頭現金、1.23 億美元的信用額度、2.77 億美元的未償還現金和大約 6500 萬美元的 ATM 可用現金。

Now I'll turn the call over to Clint.

現在我將把電話轉給克林特。

Thank you, Pam. I'll start my remarks today with recent transactions as well as a few brief updates on some of our operating partners. We have resolved the remaining 10 non-revenue-generating properties discussed on last quarter's call. Three of these properties we re-leased and the remainder were sold and you can find specific details in yesterday's press release subsequent to the end of the quarter, we announced the origination of a $12.7 million senior loan to Ignite Medical Resorts that current LTC offer loan, which was primarily funded using our ATM is secured by a skilled nursing and assisted living campus, which was built in 2017 and is located in a Houston suburb. Five-year loan is interest-only at a rate of 9.15% in accordance with GAAP. We are accounting for the loan as an unconsolidated joint venture, and we expect to generate approximately 884,000 of revenue in 2024. To date, we have managed approximately 80% of our lease maturities through 2025. First, we executed a term sheet with H. and G., whereby we have reached an agreement in principle to amend the master lease covering 11 skilled nursing centers in Texas to extend its term through December 2028 annual rent in 2024 at $9 million, a $1 million increase over 2023. Rent will increase to $9.5 million for 2025 and $10 million for 2026 escalating 3.3% annually. Thereafter, the amended master lease will provide HMG. with two 5-year renewal options with rent in the initial year of the first renewal term, adjusting to fair market rent subject to a collar between 2.5% and 12.5% as a condition of the amendment, HMG. will repay $11.9 million on its $13.5 million working capital note in the 2024 second quarter on repayment, the remaining balance for now will be interest free and will be repaid in installments through 2028. The proceeds from this 4% working capital note will be used to pay down higher interest debt or to fund accretive investment. In addition, an operator of five properties not in our top 10 has exercised its renewal option of the master lease for another five years at its contractual rate from March 2025 through February of 2030. Quickly, occupancy for the Prestige health care loan secured by 15 properties in Michigan was 77% in March 2024, an increase from 73% in the year ago period and up from 75% in January of this year.

謝謝你，帕姆。我今天將首先介紹最近的交易以及我們一些營運合作夥伴的一些簡短更新。我們已經解決了上季度電話會議中討論的剩餘 10 個非創收資產。我們重新租賃了其中三處房產，其餘的已出售，您可以在本季末後的昨天新聞稿中找到具體細節，我們宣布向 Ignite Medical Resorts 發放 1,270 萬美元的高級貸款，目前 LTC 提供貸款的資金主要來自我們的ATM 機，並由熟練的護理和輔助生活園區提供保障，該園區建於2017 年，位於休士頓郊區。根據 GAAP，五年期貸款只支付利息，利率為 9.15%。我們將這筆貸款作為未合併的合資企業進行會計處理，預計 2024 年將產生約 884,000 美元的收入。迄今為止，我們已將大約 80% 的租賃期限管理到 2025 年。首先，我們與H. 和G. 簽署了一份條款清單，原則上達成協議，修改涵蓋德克薩斯州11 個熟練護理中心的主租約，將其期限延長至2028 年12 月，2024 年年租金為900 萬美元，相當於比 2023 年增加 100 萬美元。2025 年租金將增至 950 萬美元，2026 年將增至 1,000 萬美元，每年上漲 3.3%。此後，修訂後的主租約將提供 HMG。有兩個 5 年續約選項，第一個續約期的第一年租金，調整為公平市場租金，但作為修訂的條件，上限在 2.5% 至 12.5% 之間，HMG。將於 2024 年第二季償還 1,350 萬美元營運資金票據中的 1,190 萬美元，目前剩餘餘額將免息，並將分期償還，直至 2028 年。這張 4% 營運資金票據的收益將用於償還更高利息的債務或為增值投資提供資金。此外，一家擁有 5 個物業（不在我們的前 10 名之列）的營運商已按照合約價格，從 2025 年 3 月到 2030 年 2 月，行使了主租約的續約選擇權，為期五年。很快，2024 年 3 月，密西根州 15 處房產擔保的 Prestige 醫療保健貸款入住率達到 77%，高於去年同期的 73%，也高於今年 1 月的 75%。

Regarding our assisted living portfolios with quarterly market base rent resets we received 525,000 during the first quarter of 2024 and continue to expect to receive $3.3 million in total for 2024.

關於我們按季度市場基本租金重置的輔助生活投資組合，我們在 2024 年第一季收到了 52.5 萬美元，預計 2024 年將收到總計 330 萬美元。

Now I'll provide insight into our portfolio numbers, which exclude properties transitioned on or after October first, 2022 Q4, trailing 12 month EBITDA and EBITDAR coverage for our assisted living portfolio as reported, using a 5% management fee was 1.31 times and 1.07 times respectively. Excluding stimulus funds received by our operators, coverage was 1.28 times and 1.03 times, respectively, for our skilled nursing portfolio. As reported, EBITDA and EBITDA coverage was 1.84 times and 1.34 times, respectively. Excluding stimulus funds received by our operators, coverage was 1.71 times and 1.21 times, respectively, as a result of occupancy increases and margin improvement. Same-store Q4 trailing 12 month EBITDA coverage has improved from the prior quarter, same-store coverage by 11 basis points for our assisted living portfolio and three basis points for our skilled nursing portfolio. Recent general occupancy trends include private-pay occupancy of 88% at March 31, up from 87% at both January 31st and September 30, 2023. For our skilled nursing portfolio, average monthly occupancy grew to 75% in March from 74% in January and 72% in September. The data include approximately 66% of our total same-store private pay units and approximately 87% of our same-store skilled nursing beds. Our business development team is continuously refining our offerings to meet dynamic customer demands from traditional triple-net leases to structured finance products, including mezzanine loans, preferred equity investments, creative joint ventures and construction and unitranche loans. We pride ourselves on crafting these customized solutions that cater uniquely to operators' needs while ensuring any transactions we complete are aimed at further driving shareholder value.

現在，我將深入了解我們的投資組合數字，其中不包括2022 年第四季度10 月1 日或之後轉換的房產，如報告所述，我們的輔助生活投資組合的追踪12 個月EBITDA 和EBITDAR 覆蓋率，使用5% 的管理費分別為1.31 倍和1.07 倍次。不包括我們的業者收到的刺激資金，我們的熟練護理組合的覆蓋率分別為 1.28 倍和 1.03 倍。據報道，EBITDA 和 EBITDA 覆蓋率分別為 1.84 倍和 1.34 倍。不包括業者收到的刺激資金，由於入住率增加和利潤率改善，覆蓋率分別為 1.71 倍和 1.21 倍。第四季同店 12 個月 EBITDA 覆蓋率比上一季有所改善，我們的輔助生活產品組合的同店覆蓋率提高了 11 個基點，我們的熟練護理產品組合的同店覆蓋率提高了 3 個基點。最近的整體入住率趨勢包括，截至 3 月 31 日，私人付費入住率為 88%，高於 2023 年 1 月 31 日和 9 月 30 日的 87%。對於我們的熟練護理人員組合，3 月份的平均每月入住率從 1 月份的 74% 和 9 月份的 72% 增長到 75%。這些數據包括約 66% 的同店私人付費單位總數和約 87% 的同店熟練護理床位。我們的業務開發團隊不斷完善我們的產品，以滿足不斷變化的客戶需求，從傳統的三網租賃到結構性融資產品，包括夾層貸款、優先股權投資、創意合資企業以及建築和統一貸款。我們為能夠打造這些專門滿足營運商需求的客製化解決方案而感到自豪，同時確保我們完成的任何交易都旨在進一步推動股東價值。

Looking forward, inflation remains somewhat of a wildcard and banks continue to consider their options prior to any decision making about maturing loans on their books. Regardless, we are building our pipeline with interesting opportunities that are very by financing vehicle property type operator and size. Now I'll turn things back to Wendy for her closing remarks.

展望未來，通貨膨脹在某種程度上仍然是一個通配符，銀行在做出有關帳面上到期貸款的任何決定之前將繼續考慮他們的選擇。無論如何，我們正在透過有趣的機會來建立我們的管道，這些機會很大程度上取決於融資工具財產類型營運商和規模。現在我將把事情轉回給溫迪，讓她作結束語。

Thank you, Pam and Clint. I'll conclude today with this LTC as a compelling investment one, we have consistency of leadership with successful track record two, our monthly dividend is well covered. Three. We have laddered debt maturities matched to cash flow, which reduces refinancing risk four. We have built a diversified portfolio balanced between skilled nursing and private pay seniors housing, employing various financing structures to provide LTC with a steady stream of income and liquidity and to match our operator's needs.

謝謝你們，潘姆和克林特。今天，我將將此 LTC 作為一項引人注目的投資來結束，我們擁有一貫的領導力和成功的業績記錄，第二，我們的每月股息得到了很好的支付。三。我們的債務期限與現金流量相匹配，從而降低了再融資風險四。我們在熟練護理人員和私人付費老年人住房之間建立了多元化的投資組合，採用各種融資結構為 LTC 提供穩定的收入和流動性，並滿足我們營運商的需求。

Last but not least, our smaller asset base makes it easier to drive growth because smaller investments can contribute meaningful accretion. We can achieve significant growth without making a large-scale transformative investment, we recognize that our current stock price multiple is below our historical average. We believe this reflects our focus on asset management initiatives during the pandemic. The majority of our internal resources are dedicated to growth. So our multiple should begin to expand as we demonstrate the conversion of our pipeline to accretive investments.

最後但並非最不重要的一點是，我們較小的資產基礎更容易推動成長，因為較小的投資可以帶來有意義的成長。我們可以在不進行大規模變革性投資的情況下實現顯著成長，我們認識到我們目前的股價倍數低於歷史平均值。我們認為這反映了我們在疫情期間對資產管理措施的關注。我們的大部分內部資源都致力於成長。因此，當我們展示我們的管道向增值投資的轉變時，我們的本益比應該開始擴大。

Thank you, everyone. We appreciate your ongoing support and look forward to talking to you again next quarter.

謝謝大家。我們感謝您持續的支持，並期待下季再次與您交談。

Operator, we're ready to take questions.

接線員，我們準備好回答問題了。

Thank you. At this time, we will be conducting our question and answer session and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue question. You may press star two, if you'd like to remove your question from the commission For participants using speaker, it tends to enable the necessary to pickup your handset before pressing the star case starts. One moment, please while we poll for questions at all banQi bank.

謝謝。這時候，我們將進行我們的問答環節和答疑環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中。如果您想從委員會中刪除您的問題，您可以按星號二。請稍等，我們將在所有銀行詢問問題。

Our first question is coming from Austin Wurschmidt with KeyBanc. With your line is live.

我們的第一個問題來自 KeyBanc 的 Austin Wurschmidt。與你的線路是活的。

Thanks, good morning, everybody, or how much wind in our claim, what you highlighted that the whole investment opportunity that is being evaluated today, weighted any share, some additional detail around the sale of scope with a lifeline. Appreciate your comment or issue more on a one-off deals and we will need all.

謝謝，大家早安，或者我們的主張有多大，您強調了今天正在評估的整個投資機會，加權了任何份額，以及圍繞生命線銷售範圍的一些額外細節。感謝您的評論或就一次性交易提出更多問題，我們將需要所有這些。

But you spoke to the competition in the transaction actually market.

但您談到了交易市場的實際競爭。

Sure. We'll as we and it was weak. What are we give a pipeline quote? Historically, we've given that when when deals have no near term visibility as we're building that pipeline and hopefully next quarter, we'll be able to give more visibility on on that. But at this point, we're seeing more opportunities to invest on private pay assets in some select opportunities on the skilled nursing side, such as our recent investment with Ignite for newer skilled nursing assets and currently the inbound skewed towards senior loans, construction loans, mezzanine preferred equity investments, and then but there was we see is loan maturities that are coming. We think that will be an opportunity for us to actually look at equity investments and doing sale leasebacks as well as joint ventures. I guess what's the appetite to do some of those loan type and development heightening that and what do you think the average duration on those ratios deals?

當然。我們會像我們一樣，它很弱。我們給的管道報價是什麼？從歷史上看，我們已經考慮到，當我們正在建造管道時，當交易沒有短期可見性時，希望在下個季度，我們將能夠提供更多的可見性。但目前，我們在熟練護理方面的一些精選機會中看到了更多投資私人付費資產的機會，例如我們最近與Ignite 投資的較新的熟練護理資產，以及目前的入境投資偏向於高級貸款、建設貸款，夾層優先股權投資，然後我們看到貸款即將到期。我們認為這將是我們真正考慮股權投資、售後回租以及合資企業的機會。我想對這些貸款類型和開發項目的興趣是什麼？

Our yields arm versus we just don't have appetite to do. We don't have appetite and it's going to be, I would say probably somewhere in the three to five years. Our range.

我們的收益率臂與我們只是沒有興趣做。我們沒有胃口，我想說可能會在三到五年內。我們的範圍。

Got it. And then just from a funding perspective, I mean, how are you saying that going to happen? But once you have seen a pickup in investment and investment, should we expect that you'll see over equitize and Cordis write-down luxury right now, we're kind of hanging around and timing around it, right?

知道了。然後從資金的角度來看，我的意思是，你認為這會如何發生？但是，一旦你看到投資和投資的回升，我們是否應該期望你現在會看到股權化和康迪斯減記奢侈品，我們有點徘徊並圍繞它進行計時，對嗎？

Austin, we'll equitise. We'll use equity.

奧斯汀，我們會公平。我們將使用股權。

Understood. Thank you.

明白了。謝謝。

Thank you. Thank you. Our next question.

謝謝。謝謝。我們的下一個問題。

Our next question is from Juan Sanabria from BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Juan Sanabria。

Hi. A high affiliate personally aware of it, just trying to get it done, get better and back cap rates you guys are on it sounds like I still skewed towards all skewed on loans, but if you can give color on color on CapEx,

你好。一個高級附屬機構個人意識到這一點，只是想把它完成，變得更好，並追回你們的上限利率，聽起來我仍然傾向於所有傾斜的貸款，但如果你能在資本支出上給出顏色，

Sure, Juan. your line is cutting out a little bit, I think give regarding cap rate, I mean, right now we're looking at on our new investment in the 9% range, plus or minus, depending on whether it's loans or owned assets for BMS and preferred equity. There's usually a around a 9% target rate that would go on with an IRIR. exit around 12%.

當然，胡安。你的線被削減了一點，我認為關於資本化率，我的意思是，現在我們正在考慮 9% 範圍內的新投資，加或減，取決於它是 BMS 的貸款還是自有資產和優先股。IRIR 的目標率通常約為 9%。退出12%左右。

Thanks. And then hoping you can give a little color on what you're calling on the normalized FFO guidance I've gotten from the start from the second quarter. Number one, remember that provided if they had filed, it's at the upper end. If you can give any color or any color on that on reporting on that more how are outlined in our homes themselves?

謝謝。然後希望您能對我從第二季一開始就得到的標準化 FFO 指南的要求給予一些說明。第一，請記住，如果他們提交了申請，那麼它就位於上端。如果您可以在報告中給出任何顏色或任何顏色，那麼我們的家庭本身是如何概述的？

Sure. Sure. One, it's really hard to hear you because it's cutting out. But I think you asked about our guidance and the quarterly and annual guidance. It includes everything that we've announced, but we have not included any assumption for additional investments but it does include the increases in rental rates from H. and G. and then also our transition portfolio that we gave guidance on last quarter. We're reiterating that. So there's nothing else in there, we kind of give a base rate for guidance, and then we'll allow our analysts and investors to layer on their own investment assumptions beyond and what was the second part of your question, but timing time on the other timing, I don't know your name and and.

當然。當然。第一，真的很難聽到你說話，因為它已經被切斷了。但我認為您詢問了我們的指導以及季度和年度指導。它包括我們已經宣布的所有內容，但我們沒有包括任何額外投資的假設，但它確實包括 H. 和 G. 的租金上漲，以及我們在上個季度給出的指導的過渡投資組合。我們重申這一點。因此，其中沒有其他內容，我們給出了一個基本指導利率，然後我們將允許我們的分析師和投資者根據自己的投資假設進行分層，以及您問題的第二部分是什麼，但時間安排其他時間，我不知道你的名字和。

Yes, yes, I'm sorry. The timing on the loan repayments on that is outlined in the supplemental on page 12, but it is the fourth quarter. We have two loans that are maturing in the fourth quarter and totaling about $80 million.

是的，是的，對不起。第 12 頁的補充中概述了貸款償還時間，但現在是第四季。我們有兩筆貸款將於第四季到期，總額約 8000 萬美元。

Again, where we're in discussions with the operators on that the borrowers and as we've talked about before, in giving loans, it is not our strategy to do all loans on weeks. We have and loans that we make available to operators can meet their needs, but as we always do, look to possibly convert those to long-term equity ownership. So if there's an opportunity to do that we will or if there's an opportunity to stay in those investments in some capacity, we would look to do that as well. We like these two investments.

同樣，我們與營運商就借款人問題進行討論，正如我們之前談到的，在提供貸款方面，我們的策略並不是在幾週內發放所有貸款。我們向營運商提供的貸款可以滿足他們的需求，但正如我們一貫所做的那樣，我們希望將這些貸款轉化為長期股權。因此，如果有機會這樣做，我們會這樣做，或者如果有機會以某種身分繼續參與這些投資，我們也會這樣做。我們喜歡這兩項投資。

And so we are in discussions with the operators on that.

因此，我們正在與營運商就此進行討論。

Thank you. Our next question is coming from Rich Anderson with Wedbush. Your line is live.

謝謝。我們的下一個問題來自里奇·安德森和韋德·布希。您的線路已上線。

Yes, I'm getting some mental Vertigo here. With the Echo. I hope you can hear me, but I only have one question. A lot of structured deals you talked about, Clint. I'm wondering what's your comfort level in terms of loans or I should say anything else besides fee simple ownership as a percentage of the total, how willing how far are you willing to go on that from an before risking being viewed as a mortgage rate or something that you're anywhere near that. But I'm just I'm just curious if you have a threshold in mind about how up how high you want to go on that level of investment.

是的，我有點精神眩暈。與迴聲。我希望你能聽到我的聲音，但我只有一個問題。克林特，你談了很多結構化交易。我想知道您在貸款方面的舒適度是多少，或者我應該說除了簡單所有權費用佔總費用的百分比之外的其他任何內容，在冒著被視為抵押貸款利率的風險之前，您願意走多遠？但我只是好奇你是否有一個閾值，知道你想在這個投資水平上達到多高。

We don't have a hydrogen TAM. We don't have a set threshold, but we are very mindful of that. And we really look at our structured product as a marketing tool and a way to get exposure with operators that might not normally look to refinancing and that want to retain some ownership in the properties and that's been a big hurdle in and marketing sale leasebacks to operators. There are operators out there that are like I'll never do a sale leaseback with every well. That's a that's a big portion of the marketplace that we feel if we can get an inroad with them and they can get exposure to LGC and our way of doing business that they might actually convert to ownership equity. We saw that happen with Pruitt. The it did never done a sale leaseback with a week before and they did one with us. And we worked a long time on that relationship. And that's what our business development team is out there doing looking for operators that are new to to refinancing and getting an inroad with them.

我們沒有氫 TAM。我們沒有設定門檻，但我們非常注意這一點。我們確實將我們的結構性產品視為一種行銷工具，以及一種與營運商接觸的方式，這些業者通常不會尋求再融資，並且希望保留部分房產的所有權，而這一直是向營運商營銷售後回租的一大障礙。有些業者認為我永遠不會對每口井進行售後回租。我們認為，這是市場的很大一部分，如果我們能夠與他們打交道，他們就能接觸到 LGC 和我們的經營方式，他們實際上可能會將其轉化為所有權股權。我們在普魯特身上看到了這種情況的發生。他們一周前從未做過售後回租，但他們和我們做了一次。我們為這種關係花了很長時間。這就是我們的業務開發團隊正在做的事情，尋找新的再融資業者並與他們合作。

It's and it's also it's not just it's not just yield focused teams. And this is really an opportunity to partner with operating companies with an investment structure. They're familiar with that leads us to dialogue in other opportunities they might have. So it's really more marketing, as Pam mentioned. And but from a mortgage standpoint, we're seeing an equity raise.

是的，而且不僅僅是專注於產出的團隊。這確實是一個與具有投資結構的營運公司合作的機會。他們很熟悉這會引導我們在他們可能擁有的其他機會中進行對話。正如帕姆所提到的，這實際上更多的是行銷。但從抵押貸款的角度來看，我們看到了股權融資。

Okay. I'm sure that I do have one more question on the question was asked, how are you financing the stuff? And the quick answer from Wendy was really going to use equity, but you through your ATM, you raised about $10 million or $11 million this year. So yes, that does really filled the gap so much that amount, at least in terms of what I'm thinking about for you your activity going forward. So when you say, can you expand upon the funding strategy beyond just saying we're using equities and but certainly more in the way of issuance, but also Are there other priorities downstream from equity that you might use more dispositions? I'm just if we can get more color on the financing side of things that be great. Thanks.

好的。我確信我對這個問題還有一個問題，你是如何為這些東西融資的？溫蒂的快速回答確實是要使用股權，但你今年透過 ATM 籌集了大約 1000 萬或 1100 萬美元。所以，是的，這確實填補了這麼多的空白，至少就我為你考慮的未來活動而言。因此，當您說，您能否擴展融資策略，而不僅僅是說我們使用股票，但肯定更多地以發行方式，而且您是否還有其他優先事項，您可能會使用更多的配置？我只是想，如果我們能夠在融資方面獲得更多的色彩，那就太好了。謝謝。

Sure. Sure. It's Pam on. So equity on the ATM as our primary way of financing your one-off investments like the KD loan that we did on this this year, we've almost equitized that 100%. And going forward for the smaller one-offs or two property portfolios, the ATM is great. If we were looking at a large portfolio transaction, you know, and I know it sounds very old-fashioned, but there's still an overnight marketed deal that that could be done and that's a good way to place stock in the hands of some of new potential investors, but we don't have anything like that on the horizon right now. And as I discussed, we have the $80 million in loan proceeds that currently we're anticipating are going to pay off. And so those would also be used to fund new investments.

當然。當然。帕姆在。因此，ATM 上的股權作為我們為一次性投資融資的主要方式，就像我們今年所做的 KD 貸款一樣，我們幾乎已經 100% 股權化了。對於較小的一次性或兩處房地產投資組合來說，ATM 非常有用。如果我們正在考慮一項大型投資組合交易，你知道，我知道這聽起來很過時，但仍然可以進行隔夜交易，這是將股票交到一些新人手中的好方法。還沒有類似的東西。正如我所討論的，我們目前預計將償還 8000 萬美元的貸款收益。因此，這些資金也將用於資助新的投資。

Okay. What about disposition?

好的。性格又如何呢？

We've definitely done a lot of dispositions over the past 24 months, and we don't have anything immediately on the horizon. So we're not looking right now at financing growth with any more dispositions.

在過去的 24 個月裡，我們確實做了很多處置工作，但我們還沒有立即採取任何行動。因此，我們現在不會考慮透過更多的配置來為成長融資。

Thanks. That's it for me.

謝謝。對我來說就是這樣。

Thanks.

謝謝。

Thank you. Once again, if you have any questions, please press star one on your phone at this time. Our next question is coming from Michael Carroll with RBC Capital Markets, your line is.

謝謝。再次強調，如果您有任何疑問，請此時按手機上的星號一。我們的下一個問題來自加拿大皇家銀行資本市場部的邁克爾·卡羅爾，您的台詞是。

Yes, thanks. I'm sorry, I was missing some of these questions during getting some bad feedback. Seems like everything's fine now, but can you provide some background on the EG&G lease negotiations. I know last quarter you temporary extended that lease to August and today you announced the amendment through the end of 2028. And I guess what changed there, I guess was facilitated this lease amendment that increased your rents and extended the lease term?

對了謝謝。抱歉，我在收到一些不好的回饋時遺漏了其中一些問題。現在看來一切都很好，但您能否提供一些有關 EG&G 租賃談判的背景資訊。我知道上個季度您將租約暫時延長至 8 月，今天您宣布了修訂至 2028 年底。我想那裡發生了什麼變化，我想是促成了這項租約修訂，增加了租金並延長了租期？

I'd like to point out, so we've been actively working on this. The as the buildings have increased occupancy as margins have improved is really trying to figure out how do we structure that from a rent basis you had the arm, the pending staffing rule that was out there was just finalized recently. So there is elements that were out there that we needed to collectively focus on with HMG. to be able to look at a longer-term horizon, which took some time to do that. But as you saw from the rent growth that we're getting off of this, not only in 2024, but going forward, that was a positive as well.

我想指出的是，我們一直積極致力於這方面的工作。隨著利潤率的提高，建築物的入住率也隨之增加，我們實際上是在試圖弄清楚我們如何根據你擁有手臂的租金基礎來構建這一結構，最近剛剛敲定的待定人員配置規則。因此，我們需要透過 HMG 共同關註一些因素。能夠放眼長遠，這需要一些時間。但正如你從租金成長中看到的那樣，我們正在擺脫這種局面，不僅在 2024 年，而且在未來，這也是一個積極的因素。

Okay. And then correct me if I'm wrong, client by our other two app after finance master lease?

好的。如果我錯了，請糾正我，在財務主租賃之後，我們的其他兩個應用程式的客戶？

There are not we have we talked initially about, um,

我們最初沒有討論過，嗯，

Second matter, the other master that although there were no,

第二件事，對方大師雖然沒有，

Yes, there's two of them, we have to separate master leases and then also often is on the yes, we have a line of credit outstanding with EG&G as well that we knew that that was a temporary financing, not temporary, but the short-term financing where we really took the properties back from Senior Care Centers. So we wanted to be able to get that paid off to redeploy at higher yields because that was a 4% yield on that line of credit.

是的，有兩個，我們必須分開主租賃，然後也經常是的，我們也有 EG&G 的未償還信用額度，我們知道這是臨時融資，不是臨時的，而是短期的-定期融資，我們真正從高級護理中心收回了財產。因此，我們希望能夠獲得回報，以更高的收益率進行重新部署，因為該信貸額度的收益率為 4%。

So yes, they needed to get up. Yes, the working capital line of credit, yes.

所以，是的，他們需要站起來。是的，營運資金信貸額度，是的。

Yes. And they need a longer term lease to do that from. And just to clarify for everybody with HMG., we have two separate master leases. We have we've had one which covers two properties that was pre-existing this of new 11 property master lease I think there was some confusion around that. So there are two separate master leases. We are just talking about the 11 property master lease.

是的。他們需要長期租賃才能做到這一點。為了向 HMG 的每個人澄清一下，我們有兩個單獨的主租約。我們已經有一個涵蓋了新的 11 處房產主租賃中預先存在的兩處房產，我認為這方面存在一些混亂。因此有兩個單獨的主租約。我們只是在談論 11 處房產的主租約。

Okay. And Bill of also add on that too, is we want to look at how do we get probably ramp of rent on this on what was important to us in this negotiation was getting a fair market rent reset at some point, and we were able to negotiate that into the overall terms of the amendment.

好的。比爾還補充說，我們想看看如何獲得可能的租金上漲，在這次談判中對我們來說重要的是在某個時候重新設定公平的市場租金，我們能夠將其納入修正案的總體條款中。

Okay. And then what's the rents on the new asset naturally that now and do you plan on selling those on selling?

好的。那麼現在新資產的租金自然是多少？

No, we don't have any plans on selling those. Obviously, it was structured before it's typical. So you got a 10 10-year initial term, and we agree that a gentleman was just.

不，我們沒有任何出售這些的計劃。顯然，它是在它成為典型之前構建的。所以你的初始任期是 10 年 10 年，我們都認為紳士是公正的。

Okay. Great. Sorry, the feedback or the it goes back, so it goes to Tarsa outgo question, but just real quick on the market base lease rent forecasts on that you provided that you kept it the $3.3 million for 2024 on. Does that rent include anything related to the ALG. on April transitions. I know they're not paying rent through October, but are they expected to pay rent in November and December? And is that included in that $3.3 million number?

好的。偉大的。抱歉，反饋或它會退回，所以它會轉到 Tarsa outgo 問題，但只要您在 2024 年保持 330 萬美元，就可以快速對市場基礎租賃租金進行預測。該租金是否包括與 ALG 相關的任何費用？關於四月的過渡。我知道他們不會在 10 月之前支付租金，但他們預計會在 11 月和 12 月支付租金嗎？這是否包含在 330 萬美元的數字中？

There's no rent included in that number for those buildings.

這些建築物的租金不包含在該數字中。

Just asking about it now revenue produced. That's not in the $3.3 million.

只是問一下現在產生的收入。這並不在 330 萬美元之內。

Okay. Great. And you expect that to get rent from those assets after the free rent period?

好的。偉大的。您希望在免租期結束後從這些資產中獲得租金嗎？

Correct.

正確的。

Okay, Clint. Thanks.

好的，克林特。謝謝。

Thank you.

謝謝。

Thank you. As we have reached the end of our question, and answer a question and answer session. I will now turn to commentary on Cohort two. I know from some new brand closing remarks or closing remarks.

謝謝。當我們的問題已經結束時，我們將進行問答環節。我現在將轉向對第二組的評論。我從一些新品牌的結束語或結束語中了解到。

Thank you all for joining us for the first quarter, and we're really excited about this year, and we hope to bring you additional good news after our second quarter ends. Have a great day.

感謝大家加入我們第一季度，我們對今年感到非常興奮，我們希望在第二季結束後為您帶來更多好消息。祝你有美好的一天。

Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

謝謝女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您的參與。