LTC Properties Inc (LTC) 2024 Q2 法說會逐字稿

Good day and welcome to the LTC Properties, Incorporated second-quarter 2024 earnings call.

美好的一天，歡迎參加 LTC Properties, Incorporated 2024 年第二季財報電話會議。

(Operator Instructions) 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 LTC Properties filings with the Securities and Exchange Commission from time to time, including the Company's most recent 10-K dated December 31, 2023.

（操作員指示）在管理階層開始示範之前。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 報告。

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 that this event is being recorded.

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，該事件正在被記錄。

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

我現在想把會議交給溫蒂辛普森。請繼續。

Thank you, operator, and welcome, everyone, to LTC's 2024 second-quarter conference call. On the call with me today are Clint Malin, Co-President and Chief Investment Officer; and Pam Kessler, Co-President and Chief Financial Officer.

謝謝業者，歡迎大家參加 LTC 2024 年第二季電話會議。今天與我通話的是聯合總裁兼首席投資長克林特馬林 (Clint Malin)；聯合總裁兼財務長 Pam Kessler。

The second quarter went generally according to plan. We did encounter a challenge with respect to occupancy issues at select assisted living communities operated by ALG Senior, but we very quickly provided solutions that are in the best interest of LTC, our partner, and our shareholders. With the full cooperation of ALG, we were able to neutralize the impact to LTC while enhancing our portfolio and providing us with additional security. Clint will explain as part of his portfolio review.

第二季總體按計劃進行。我們確實在 ALG Senior 營運的精選輔助生活社群的入住問題上遇到了挑戰，但我們很快就提供了符合 LTC、我們的合作夥伴和股東最大利益的解決方案。在 ALG 的全力合作下，我們能夠消除對 LTC 的影響，同時增強我們的投資組合併為我們提供額外的安全性。克林特將在他的投資組合審查中進行解釋。

As with other REITs, over the years, we have responded to challenges presented by industry- and operator-specific headwinds. Our track record demonstrates that we've done so with expediency and transparency and the ALG situation is no different. Our philosophy and mission have not changed, and we remain committed to our 2024 guidance and the future growth.

與其他房地產投資信託基金一樣，多年來，我們一直在應對產業和營運商特定不利因素帶來的挑戰。我們的過往記錄表明，我們的做法既方便又透明，ALG 的情況也不例外。我們的理念和使命沒有改變，我們仍然致力於 2024 年的指導和未來的成長。

Thank you, Wendy. I'll first discuss the steps we took to address the occupancy issues underlying some of our ALG investments. At a high level, we provided rent assistance for two of our investments at the end of the second quarter, and in exchange, reconfigured mortgage loans due from affiliates of ALG into two joint venture investments.

謝謝你，溫迪。我將首先討論我們為解決某些 ALG 投資的佔用問題而採取的步驟。在高水準上，我們在第二季末為兩項投資提供了租金援助，作為交換，我們將 ALG 附屬公司應得的抵押貸款重新配置為兩項合資投資。

First, we agreed to defer a total of $1.5 million in rent from ALG for May and June related to an 11 property assisted living portfolio in North Carolina that we owned through a joint venture accounted for as a financing receivable. This receivable had a balance of $121.4 million at June 30, 2024. Additionally, we agreed to defer up to $250,000 in rent per month as needed as they build back census to the remainder of 2024. The maximum deferred rent from July through December would be $1.5 million.

首先，我們同意推遲 ALG 5 月和 6 月總計 150 萬美元的租金，這些租金與我們透過一家合資企業擁有的北卡羅來納州 11 個房產輔助生活投資組合相關，並作為應收融資帳款核算。截至 2024 年 6 月 30 日，該應收帳款餘額為 1.214 億美元。此外，我們同意根據需要推遲每月最多 25 萬美元的租金，因為他們將人口普查推遲到 2024 年剩餘時間。7 月至 12 月的遞延租金最高限額為 150 萬美元。

Second, we agreed to no rent on a single property lease in South Carolina for May through September 2024, with quarterly market-based rent resets thereafter. At June 30, 2024, this property had a gross book value of $11.7 million and a net book value of $8.2 million. In conjunction with the rental assistance, LTC wrote off $321,000 of straight-line rent receivable in the second quarter. Previous annualized rent on this lease was approximately $900,000.

其次，我們同意在 2024 年 5 月至 2024 年 9 月期間，南卡羅來納州的單一房產租賃免收租金，此後按季度根據市場情況重新調整租金。截至 2024 年 6 月 30 日，該房產的帳面總價值為 1,170 萬美元，帳面淨值為 820 萬美元。連同租金援助，LTC 在第二季度註銷了 321,000 美元的直線應收租金。該租約之前的年化租金約為 90 萬美元。

Third, we funded $8.3 million under two mortgage loans. In consideration for the rent assistance I discussed, these mortgage loans were converted to two joint ventures, giving us a majority ownership stake in 17 assets, 13 in one joint venture, and 4 in another.

第三，我們透過兩項抵押貸款提供了 830 萬美元的資金。考慮到我所討論的租金援助，這些抵押貸款被轉換為兩家合資企業，使我們擁有 17 項資產的多數股權，其中 13 項在一家合資企業，4 項在另一家合資企業。

After the $8.3 million of additional loan funding, the joint venture investments related to the 17 properties are configured as follows. We exchanged our $64.5 million mortgage loan for a 53% interest in a joint venture that now owns 13 assisted living communities, one in South Carolina and the rest in North Carolina. We exchanged our $38 million mortgage loan for a 93% interest in a joint venture that now owns four assisted living communities in North Carolina. Each of these joint ventures then lease the properties to an affiliate of ALG under 10-year master leases maturing at the end of June 2034, with purchase options available through June 2028.

在獲得 830 萬美元額外貸款資金後，與 17 處房產相關的合資投資配置如下。我們用 6,450 萬美元的抵押貸款換取了一家合資企業 53% 的股權，該合資企業目前擁有 13 個輔助生活社區，其中一個位於南卡羅來納州，其餘位於北卡羅來納州。我們用 3800 萬美元的抵押貸款換取了一家合資企業 93% 的股權，該合資企業目前在北卡羅來納州擁有四個輔助生活社區。然後，每家合資企業均根據 10 年期主租約將這些房產出租給 ALG 的一家附屬公司，主租約將於 2034 年 6 月底到期，並提供購買選擇權直至 2028 年 6 月。

In accordance with GAAP, these investments are being accounted for as a financing receivable. Combined contractual annual rent under the two new master leases is $7.4 million compared with $6.9 million of annualized cash interest due under the previous mortgage loans as a result of the additional $8.3 million in cash we invested.

根據公認會計準則，這些投資被視為應收融資款。兩份新主租約下的合約年租金合計為 740 萬美元，而由於我們額外投資了 830 萬美元現金，先前抵押貸款的年化現金利息為 690 萬美元。

For the month of July, we received total contractual rent and interest related to our ALG investments plus a $250,000 deferral. All of our investments with ALG are now cross-defaulted and cross-collateralized, providing us with added security. Our pathways for repayment of the deferred rent or through ALG's exercise of their purchase options, occupancy improvements within our investments, or through proceeds from potential sales of properties to a third party.

7 月份，我們收到了與 ALG 投資相關的總合約租金和利息，以及 25 萬美元的延期付款。我們與 ALG 的所有投資現在都是交叉違約和交叉抵押的，為我們提供了額外的安全性。我們償還遞延租金的途徑或透過 ALG 行使購買選擇權、改善我們投資中的入住率，或透過潛在向第三方出售房產的收益。

We have successfully managed all lease maturities in 2024, including our HMG extension, through which they repaid $1.5 million on their $13.5 million working capital note in the second quarter and an additional $10.4 million in July. Lease maturities in 2025 represent 3% of rental income. We collected contractual rent from former operators related to properties previously transitioned, as Pam will discuss. As detailed in our supplemental on page 16, coverage continues to increase across our portfolio.

我們成功管理了2024 年的所有租賃到期，包括我們的HMG 延期，透過延期，他們在第二季度償還了1,350 萬美元營運資金票據中的150 萬美元，並在7 月份額外償還了1,040 萬美元。2025 年到期的租賃佔租金收入的 3%。正如帕姆將討論的那樣，我們向前運營商收取了與之前轉讓的房產相關的合約租金。正如我們第 16 頁的補充資料所詳述的，我們的投資組合涵蓋範圍不斷擴大。

With respect to our pipeline, subsequent to the end of the second quarter, we committed to fund a $26.1 million mortgage loan for the construction of a seniors' housing community in Illinois. We expect to begin funding this commitment in early 2025 after the borrower has contributed $12.3 million of equity to initially fund the construction. The loan term is approximately six years at a current rate of 9% and an IRR of 9.5%. We look forward to updating you on the progress of our pipeline next quarter.

關於我們的管道，在第二季末之後，我們承諾提供 2,610 萬美元的抵押貸款，用於在伊利諾伊州建造老年人住房社區。我們預計在藉款人出資 1,230 萬美元股本為建設提供初始資金後，將於 2025 年初開始為此承諾提供資金。貸款期限約為六年，當前利率為 9%，內部收益率為 9.5%。我們期待向您通報下季度我們管道的最新進展。

Now I'll turn things over to Pam for a review of our financial results.

現在我將把事情交給帕姆來審查我們的財務表現。

Thank you, Clint. Because we have provided significant detail on our press release, supplemental, and Form 10-Q, I will keep my remarks at a high level today. Please note that all numbers discussed are for the second quarter of 2024 compared to the same period in 2023, unless otherwise noted.

謝謝你，克林特。由於我們已經在新聞稿、補充資料和 10-Q 表中提供了重要細節，因此我今天的演講將保持在較高的水平。請注意，除非另有說明，否則討論的所有數字均為 2024 年第二季與 2023 年同期的比較。

I'll start with liquidity. At June 30, we had total liquidity of nearly $190 million, including just over $6 million of cash on hand, about $118 million available on our line of credit and roughly $65 million available under our ATM.

我將從流動性開始。截至 6 月 30 日，我們的流動性總額接近 1.9 億美元，其中包括略多於 600 萬美元的手頭現金、約 1.18 億美元的信貸額度和約 6,500 萬美元的 ATM 可用資金。

Moving to our second-quarter financial results, net income available to common shareholders increased principally due to an impairment loss last year, higher interest income from loan originations, receipt of insurance proceeds, and lower interest expense, partially offset by higher G&A expense and provision for credit loss.

轉向我們第二季度的財務業績，普通股股東可獲得的淨利潤增加，主要是由於去年的減值損失、貸款產生的利息收入增加、收到保險收益以及利息支出減少，部分被較高的一般管理費用和撥備所抵銷為信用損失。

Fully diluted FFO per share was $0.65 compared with $0.66. Excluding non-recurring items, FFO per share was $0.67 compared with $0.66. As discussed last quarter as subsequent events, we originated a $12.7 million mortgage loan to Ignite Medical Resorts and recorded $295,000 of revenue from this investment during the second quarter. We expect to record approximately $884,000 of revenue for the full year. We funded $3.9 million of a previously disclosed $19.5 million mortgage loan commitment with $12.6 million remaining.

完全稀釋後的 FFO 每股價格為 0.65 美元，而每股價格為 0.66 美元。不包括非經常性項目，每股 FFO 為 0.67 美元，而每股 FFO 為 0.66 美元。正如上季度後續事件所討論的那樣，我們向 Ignite Medical Resorts 發放了 1,270 萬美元的抵押貸款，並在第二季度從這項投資中獲得了 295,000 美元的收入。我們預計全年收入約為 884,000 美元。我們為先前披露的 1,950 萬美元抵押貸款承諾中的 390 萬美元提供了資金，剩餘 1,260 萬美元。

Subsequent to the end of the second quarter, we sold an assisted living community for $8 million and anticipate recording a gain on sale of approximately $3.6 million in the third quarter. As part of the transaction, we received contractual rent through the remainder of the lease term, which would have expired in January 2025 in the amount of $441,000.

第二季末後，我們以 800 萬美元的價格出售了一個輔助生活社區，預計第三季的銷售收益約為 360 萬美元。作為交易的一部分，我們在剩餘的租賃期內收到了合約租金，該租金將於 2025 年 1 月到期，金額為 441,000 美元。

As Clint mentioned, subsequent to the end of the quarter, we recorded $2.6 million of income from former operators related to portfolio transitions in prior years and we received a $10.4 million paydown on HMG's working capital note. We also expect two maturing loan receivables totaling $80.5 million to pay off before the end of the year.

正如克林特所提到的，在本季末之後，我們從前營運商那裡獲得了260 萬美元的收入，這些收入與前幾年的投資組合轉型相關，並且我們收到了1040 萬美元的HMG 營運資本票據付款。我們還預計兩筆到期的應收貸款總額為 8,050 萬美元，將在年底前還清。

During the second quarter, we sold 204,700 shares of LTC's common stock for net proceeds of $6.5 million under our ATM program. We paid $4 million in scheduled principal paydowns on our senior unsecured notes during the quarter and repaid an additional $18.2 million subsequent to June 30.

第二季度，我們根據 ATM 計劃出售了 204,700 股 LTC 普通股，淨收益為 650 萬美元。我們在本季度支付了 400 萬美元的優先無擔保票據的預定本金償還額，並在 6 月 30 日之後額外償還了 1,820 萬美元。

During the second quarter, we also paid $24.8 million in monthly dividends of $0.19 per share and borrowed $4.7 million under our unsecured revolving line of credit. Our debt to annualized adjusted EBITDA for real estate is down to 5.3 times from 5.5 times for the prior quarter and our annualized adjusted fixed charge coverage ratio is up to 3.7 times from 3.5 times for the prior quarter.

第二季度，我們還支付了 2,480 萬美元的每月股息，每股 0.19 美元，並根據無擔保循環信貸額度借款了 470 萬美元。我們的房地產債務與年化調整後 EBITDA 比率從上一季的 5.5 倍下降至 5.3 倍，年化調整後固定費用覆蓋率從上一季的 3.5 倍升至 3.7 倍。

Our third-quarter guidance for FFO, excluding non-recurring items, is between $0.66 and $0.67 per share. Non-recurring items for the third quarter relate to the $3.1 million in income from former operators and the rent collected in connection with the property sale as discussed earlier.

我們對 FFO 的第三季指引（不包括非經常性項目）為每股 0.66 美元至 0.67 美元。第三季的非經常性項目涉及前營運商的 310 萬美元收入以及與先前討論的房地產銷售相關的租金。

Our full-year guidance for FFO, excluding non-recurring items, remains $2.63 to $2.65 per share. Non-recurring items for the full year includes the $3.1 million expected for the third quarter, as well as the non-recurring items recognized to date, as detailed in our earnings release. This guidance assumes no additional investment activity, asset sales, financing, or equity issuances, but does assume that the loans receivable I mentioned pay off at maturity.

我們對 FFO 的全年指引（不包括非經常性項目）仍為每股 2.63 美元至 2.65 美元。全年的非經常性項目包括第三季預計的 310 萬美元，以及迄今已確認的非經常性項目，詳見我們的收益報告。本指南假設沒有額外的投資活動、資產出售、融資或股票發行，但假設我提到的應收貸款在到期時償還。

Now I'll turn the call back to Wendy for closing remarks.

現在我將把電話轉回給溫迪，讓其致閉幕詞。

Thank you, Pam and Clint. This quarter, we worked cooperatively with one of our largest operating partners to help them address a challenge while improving our security and gaining a majority ownership position in our investments.

謝謝你們，潘姆和克林特。本季度，我們與最大的營運合作夥伴之一合作，幫助他們應對挑戰，同時提高我們的安全性並獲得我們投資的多數股權。

I'm very proud of LTC's track record with respect to successfully mitigating challenges as they arise and that we've done so quickly and transparently. With continued improvement across our industry, I remain optimistic that we are on the right path for growth.

我對 LTC 在成功緩解出現的挑戰方面的記錄感到非常自豪，而且我們做得如此迅速和透明。隨著整個行業的持續改善，我仍然樂觀地認為我們正走在正確的成長道路上。

Before closing, I would like to welcome our new Board member, Bradley Preber. Brad is the Chairman of our Audit Committee and comes to LTC after retiring as CEO of Grant Thornton. We look forward to his contributions.

在結束之前，我要歡迎我們的新董事會成員布拉德利·普雷伯 (Bradley Preber)。Brad 是我們審計委員會的主席，在辭去致同 (Grant Thornton) 執行長職務後加入 LTC。我們期待他的貢獻。

Thank you to everyone who joined us today. We look forward to talking to you again after the third quarter.

感謝今天加入我們的所有人。我們期待在第三季之後再次與您交談。

Operator, we are ready to take questions.

接線員，我們準備好回答問題。

(Operator Instructions) Juan Sanabria, BMO Capital Markets.

（操作員指令）Juan Sanabria，BMO 資本市場。

Hi, good morning. And thanks for the time. Just on ALG, I guess, could you be a little bit more specific about the issues that happened that caused the deferrals and all these changes to take place? And as part of that, maybe you could comment a little bit on why provide them a purchase option? And kind of what you got in return as part of the negotiations?

嗨，早安。感謝您抽出時間。我想，就 ALG 而言，您能否更具體地說明導致延期和所有這些變化發生的問題？作為其中的一部分，也許您可以評論為什麼為他們提供購買選項？作為談判的一部分，你得到了什麼回報？

Sure, Juan. So really, it's a function of two issues that surfaced on ALG, which these challenges came to light in May. One was the occupancy challenge that Wendy referred to in our prepared remarks on 12 of the communities. On those 12 communities, in some smaller markets, there were some staffing challenges and some of those staffing challenges were really evident in a decline in occupancy.

當然，胡安。事實上，這是 ALG 上出現的兩個問題的結果，這些挑戰於 5 月曝光。其中之一是溫迪在我們針對 12 個社區準備的評論中提到的入住挑戰。在這 12 個社區的一些較小市場中，存在一些人員配備方面的挑戰，其中一些人員配備方面的挑戰在入住率下降方面確實很明顯。

An additional impact to the buildings is these investments have a component of an affordable senior living product that has a Medicaid waiver component. And in North Carolina, they've had a long-standing Medicaid waiver program. As you probably recall, the cyber-attack that happened on Change Healthcare. It did have impacts on reimbursement aspects for Medicaid and Medicare through intermediaries. And that did impact ALG on their Medicaid revenues, which is a short-term temporary impact, but they felt.

對建築物的另一個影響是，這些投資包含負擔得起的老年生活產品的一部分，該產品具有醫療補助豁免部分。在北卡羅來納州，他們有一個長期的醫療補助豁免計劃。您可能還記得，Change Healthcare 發生的網路攻擊。它確實透過中介機構對醫療補助和醫療保險的報銷方面產生了影響。這確實影響了 ALG 的醫療補助收入，這是短期的暫時影響，但他們感覺到了。

And further exacerbating that is ALG did not have a line of credit in place for Medicaid receivables, which you typically find on skilled nursing, why we didn't see that -- I think which is the reason why we didn't see this in our skilled nursing portfolio as far as impact. So really, it was this staffing challenges at certain communities that has led to occupancy declines in certain assets. And then this short-term impact that was experienced through the cyberattack, which is evidenced by us giving a lesser amount of deferred rent starting in July.

進一步加劇這種情況的是ALG 沒有針對醫療補助應收帳款設立信用額度，這通常是在熟練護理人員身上找到的，為什麼我們沒有看到這一點——我認為這就是我們沒有在醫療補助應收帳款中看到這一點的原因。事實上，正是某些社群的人員配置挑戰導致了某些資產的入住率下降。然後是透過網路攻擊經歷的短期影響，我們從 7 月開始提供較少數額的遞延租金就證明了這一點。

And really on the -- as far as the purchase options, these investments were always intended to be shorter term for ALG to take these out through agency financing. So we kept the integrity of that. Obviously, it was negotiation because we had different investments. ALG had different investors on those pools. So an important aspect for us was being able to convert our mortgages from a mortgage position into an equity position. And that was important part of that. In exchange for that of getting cross-default and cross-collateralization across all investments, that was the negotiation was facilitated the purchase options that we allowed ALG to maintain.

實際上，就購買選擇而言，這些投資的目的始終是短期的，以便 ALG 透過機構融資將其取出。所以我們保持了這一點的完整性。顯然，這是談判，因為我們有不同的投資。ALG 在這些資金池上有不同的投資者。因此，對我們來說一個重要的方面是能夠將我們的抵押貸款從抵押貸款頭寸轉換為股權頭寸。這是其中重要的一部分。作為在所有投資中獲得交叉違約和交叉抵押的交換條件，我們允許 ALG 維持購買選項，從而促進了談判。

Additionally on this portfolio that we provided the deferred rent, when we underwrote it, I mean it had positive coverage when we acquired the buildings. They have had a pretty big drop in this portfolio of about 700 basis points in occupancy. That really has an impact. So we think with ALG's focus on being able to build back occupancy through staffing improvements that they'll be able to get back to a point where they can cover.

此外，在這個投資組合中，我們提供了遞延租金，當我們承保時，我的意思是當我們收購建築物時它具有積極的覆蓋範圍。他們的投資組合入住率下降了約 700 個基點。這確實有影響。因此，我們認為，隨著 ALG 專注於透過改善人員配置來恢復入住率，他們將能夠回到可以覆蓋的水平。

And in giving the purchase options, what we also did is we created another pathway for recovery of this deferred rent that we provided on the 11 property portfolio. And we think that was an important element to get from a credit standpoint.

在提供購買選擇的同時，我們還創建了另一條途徑來收回我們在 11 個房產組合中提供的遞延租金。我們認為，從信用的角度來看，這是一個重要的因素。

Okay, thank you for that. And then just as a -- just so I understand this, the deferrals are not reducing guidance because you're sticking with straight-line accounting. You're not cash accounting for ALG. Is that correct?

好的，謝謝你。然後，正如我所理解的那樣，延期並不會減少指導，因為你堅持直線會計。您不是 ALG 的現金會計。這是正確的嗎？

That's correct, Juan, yeah. The effective interest method similar to mortgage loans, so there is no difference in FFO between mortgage loans and their own properties accounted for as financing receivables.

沒錯，胡安，是的。實際利率法與抵押貸款類似，因此抵押貸款與作為融資應收款核算的自有財產的FFO不存在差異。

And how should we think about the difference between FAD and FFO? Presumably, you won't capture the deferrals through normalized FAD. Correct?

我們該如何看待FAD和FFO之間的差異？據推測，您不會透過標準化 FAD 捕獲延期。正確的？

Yeah, that is correct. But as I said in my prepared remarks, we have about $3.1 million that we're collecting in the third quarter, so those offset for the year.

是的，這是正確的。但正如我在準備好的演講中所說，我們在第三季收到了大約 310 萬美元，因此這些費用可以抵消今年的費用。

Okay, great. And then just one last one for me. Sorry to hog the mic here to start. But what happened on the SNF occupancy side? It looks like that declined as well, looking at the footnote of disclosure for the latest June trends in the SNF.

好的，太好了。然後是我的最後一件事。很抱歉在這裡佔用麥克風開始。但 SNF 佔用方面發生了什麼？從 SNF 最新 6 月趨勢披露的腳註來看，這一數字似乎也有所下降。

I think that probably is more just seasonal looking at summer. I don't see any big impact to that. You do see some dips in summer months, and I don't think there's anything that's abnormal.

我認為這可能更像是夏季的季節性。我認為這不會產生任何大的影響。夏季確實會出現一些下降，我不認為有任何異常。

Austin Wurschmidt, KeyBanc Capital Markets. .

Austin Wurschmidt，KeyBanc 資本市場。。

Hey, good morning, everybody. Just sticking with ALG here. I guess, following the sale and releasing of some of the older rural ALG assets earlier this year, I mean, did you consider any alternative routes, I guess, for these portfolios as well? And were there signs of distress leading up to some of the items you highlighted that impacted them, it sounded like in May?

嘿，大家早安。在這裡只堅持使用 ALG。我想，在今年稍早出售和釋放一些較舊的農村 ALG 資產之後，我想，您是否也考慮過這些投資組合的任何替代路線？您強調的一些影響他們的項目是否有困擾的跡象，聽起來像是五月份​​的情況？

Well, there is alternative. ALG was looking at alternatives for financing and paying off these investments. Because of the deferral and the timing, we didn't want to wait and allow them to pay it off and not sure when the other financing would close. So for us to be able to provide the deferral, we needed to execute on the ownership of that. But ultimately for ALG, taking out this portfolio through agency financing, I think will benefit them long term. And I think that remains our objective on this.

好吧，還有替代方案。ALG 正在尋找融資和償還這些投資的替代方案。由於延期和時間安排的原因，我們不想等待讓他們還清，也不確定其他融資何時結束。因此，為了能夠提供延期，我們需要執行其所有權。但最終對於 ALG 來說，透過機構融資來獲得這個投資組合，我認為從長遠來看將使他們受益。我認為這仍然是我們的目標。

And as far as -- the impact for us really became more obvious in May when they needed assistance. I think that was sort of the impact of the change health care issue catching up with them, but we still think that their execution to be able to acquire these buildings is still in their interest.

就五月而言，當他們需要援助時，對我們的影響確實變得更加明顯。我認為這是醫療保健問題的變化對他們造成的影響，但我們仍然認為他們能夠獲得這些建築物的執行仍然符合他們的利益。

Got it. And then sorry if I missed this, but I mean, are you starting to see occupancy of these assets begin to recover? And have they addressed some of the staffing challenges that you highlighted in your prepared remarks or in response to an earlier question, maybe?

知道了。如果我錯過了這一點，抱歉，但我的意思是，您是否開始看到這些資產的佔用率開始恢復？他們是否解決了您在準備好的發言中或在回答先前的問題時強調的一些人員配置挑戰？

One thing to -- right now, on the -- this portfolio, that of the 13 buildings. ALG’s been pursuing agency financing. It has gotten in the process of getting appraisals. So that's already in the works that ALG has been working on. So we do have that.

現在，在這個投資組合中，有一件事是關於 13 棟建築的。ALG 一直在尋求機構融資。它已經進入評估過程。所以這已經是 ALG 一直在做的事情了。所以我們確實有。

Really the challenge primarily was just in this portfolio, this 11 building portfolio as far as occupancy concerns. The two other portfolios, occupancy has been stable or increasing and the other. So it really seems to be focused on this. I mean, we're working with ALG to understand those staffing challenges and of being able to regain occupancy, which they had at one point in this portfolio.

實際上，挑戰主要在於這個投資組合，就佔用率而言，這 11 棟建築組合。其他兩個投資組合的入住率一直穩定或不斷增加。所以看起來確實是專注於此。我的意思是，我們正在與 ALG 合作，了解這些人員配備方面的挑戰，並能夠重新獲得入住率，這是他們在這項投資組合中曾經遇到的。

Got it. And then just last one for me. Just on the deferral balances that you’ve had a couple of these one-time collections you’ve highlighted. I guess, how big of a balance is that? And what agreements do you have in place to recover those rents over time?

知道了。然後是我的最後一個。僅就延期餘額而言，您已經突出顯示了一些一次性收款。我想，這個餘額有多大？你們簽訂了哪些協議來隨著時間的推移收回這些租金？

Our primary balance outstanding is probably a little bit over $3 million.

我們的主要未償餘額可能略高於 300 萬美元。

Yeah, $3.5 million.

是的，350萬美元。

$3.5 million from one operator specifically. We have various security instruments in place from assets, personal guarantees. We have a pathway to recovery. We did not include it, obviously, in our earnings. Not certain when we'd be able to collect, but --

3.5 美元特別是來自一個運營商的百萬美元。我們擁有資產、個人擔保等各種擔保工具。我們有一條康復之路。顯然，我們沒有將其計入我們的收益中。不確定我們什麼時候能夠收集，但是--

Yeah, the timing is uncertain, which is why we don't include it in guidance and why we didn't accrue it when we negotiated the deferral several years ago.

是的，時間是不確定的，這就是為什麼我們沒有將其納入指導，也是為什麼我們在幾年前協商推遲時沒有累積它。

Understood. And so you're just recognizing that and that's the offset, you know, from the deferral, the new deferrals that you provided to ALG? Just to make sure I'm understanding that correctly.

明白了。所以你只是認識到這一點，這就是你向 ALG 提供的延期的抵消額，新的延期？只是為了確保我正確理解這一點。

Correct. Yes, it does not apply to -- it's not related to this operator. It was a transition that happened actually earlier last year.

正確的。是的，它不適用於——它與該運算符無關。這一轉變實際上發生在去年早些時候。

John Kilichowski, Wells Fargo.

約翰‧基利霍夫斯基，富國銀行。

Hi, thank you. I guess, first, it felt like on the last call, you started to get more positive on the potential for, A, a larger investment pipeline, and B, more fee simple asset acquisitions. Are we nearing that? Like should we expect a positive inflection in the second half of the year?

你好，謝謝。我想，首先，感覺就像在最後一次通話中，你開始對 A、更大的投資管道和 B、更收費的簡單資產收購的潛力更加積極。我們已經接近那個目標了嗎？就像我們應該期待下半年出現正面的改變嗎？

Well, right now, we have NI-published data. There's $25 billion in debt maturities through 2026. We've been talking about this wall of debt for a while. We haven't seen the opportunities come to fruition as we thought. And I think part of that is owners that have had to invest additional money see the potential for maybe some rate cuts and -- or maybe holding out hope on that. So there's still a disparity between the bid and ask on those type of opportunities. And so we're still -- we're actively monitoring and watching, and hopefully, these opportunities come to fruition.

嗯，現在我們有 NI 發布的數據。到 2026 年，還有 250 億美元的債務到期。我們已經談論這堵債務牆有一段時間了。我們並沒有看到機會如我們想像的那樣實現。我認為部分原因是那些必須投入額外資金的業主看到了降息的可能性，或者對此抱有希望。因此，此類機會的出價和要價之間仍然存在差異。因此，我們仍在積極監控和觀察，希望這些機會能實現。

Got it. And then maybe if you could take a minute to dive into the purchase options you have outstanding, how do you size the risk of the portfolio of those in terms of estimating what you think will be executed on? And as you go forward, how necessarily will it be to continue to provide in these to execute deals?

知道了。然後，也許您可以花一點時間深入了解您擁有的未決購買選項，您如何根據估計您認為將要執行的內容來衡量這些投資組合的風險？隨著您的前進，繼續提供這些來執行交易的必要性有多大？

Well, currently, we're not projecting any of the purchase options in the near term to be exercised. A lot of these were given in a much lower interest rate environment. So I'm not sure the math is there from the equity and debt raising standpoint. And when we've talked to investors, we're -- there's a big distinction between a debt maturity and a purchase option.

目前，我們預計短期內不會執行任何購買選擇。其中許多是在低得多的利率環境下提供的。因此，從股本和債務融資的角度來看，我不確定數學是否存在。當我們與投資者交談時，我們發現債務到期日和購買選擇權之間存在很大差異。

A debt maturity is certain and it comes. And the purchase option is just that. It's something that gives the operator optionality in the future. And for them, it's very important psychologically to be able to, at some point in the future, control their asset. And so it doesn't seem to be a difficult thing for us to give on actually. The assets that we have sold have not been subject to purchase options. We've elected to sell certain assets to operators.

債務到期是確定的，它就會到來。購買選項就是這樣。它為營運商提供了未來的選擇。對他們來說，在未來的某個時刻能夠控制自己的資產在心理上非常重要。所以，對我們來說，實際上放棄似乎不是一件困難的事。我們已出售的資產不受購買選擇權的約束。我們選擇將某些資產出售給營運商。

And in my recent memory, I don't believe we've even had a purchase option exercised. You would say if you're in a good relationship with your capital provider and everything's going smoothly, why would you want to exercise a purchase option? The only reason you would do it if the math is really compelling and you could raise that much equity to take it out.

在我最近的記憶中，我認為我們甚至沒有行使過購買選擇權。您可能會說，如果您與資本提供者關係良好並且一切進展順利，為什麼您要行使購買選擇權？如果數學確實令人信服並且​​你可以籌集那麼多股本來將其取出，那麼你會這樣做的唯一原因。

But we're very careful in laddering our purchase options.

但我們在選擇購買選項時非常謹慎。

Yes.

是的。

So that we don't have a ton of cash coming back in any one year.

這樣我們就不會在任何一年內收回大量現金。

Yeah, correct. They're not all in one year. Just like our debt maturity ladder, our purchase option windows are laddered as well.

是的，正確。它們不是一年內全部完成的。就像我們的債務到期階梯一樣，我們的購買選擇窗口也是階梯式的。

And the other thing we've done, John, on this too, is in some of our purchase options, we provided an alternative of the earnout as opposed to a purchase option. So really giving an operator flexibility on that. But our goal, obviously, as we build relationships, get purchase options. As we do additional deals, I mean, you can extend out that purchase option and there's different ways to work proactively with our operating partners to address those purchase options the day as we continue to focus on the laddering of those purchase options.

約翰，我們在這方面所做的另一件事也是在我們的一些購買選項中，我們提供了與購買選項相反的獎勵替代方案。因此，確實為操作員提供了靈活性。但顯然，我們的目標是，當我們建立關係時，獲得購買選擇。我的意思是，當我們進行更多交易時，您可以擴展該購買選項，並且可以通過不同的方式與我們的營運合作夥伴積極合作，以在我們繼續專注於這些購買選項的階梯化的同時解決這些購買選項。

Rich Anderson, Wedbush.

里奇安德森，韋德布希。

Thank you. Good morning. Just -- I apologize, I just need a little bit more clarity. There is $3.1 million of deferral collections in the third quarter, and that offsets the $3 million of deferrals that you are offering --potentially offering ALG. Is that right?

謝謝。早安.只是——我很抱歉，我只是需要更清楚一點。第三季有 310 萬美元的延期收款，這抵消了您提供的 300 萬美元的延期（可能提供 ALG）。是這樣嗎？

That is correct.

這是正確的。

Okay. And -- but the $3.1 million will come in, in the third quarter, whereas the $3 million would be ratably through to the end of the year, right, so just like in terms of modeling.

好的。而且 - 但 310 萬美元將在第三季度到位，而 300 萬美元將按比例持續到年底，對吧，就像建模方面一樣。

Yes, that's right. You have $1.5 million coming in the second quarter for the May and June. And then you have $1.5 million coming July through December. So that's the deferral side. And then yes, the $3.1 million of cash received from previous deferrals, if you want to call it that. And then one -- there was a $400,000 related to the asset that we sold where we collected rent through the initial term. That comes in the second. -- I mean, I'm sorry, the third quarter. All in the third quarter, which will probably normalize.

是的，沒錯。第二季 5 月和 6 月的營收為 150 萬美元。然後，從 7 月到 12 月，您將獲得 150 萬美元。這就是延期方面。然後是的，從之前的延期中收到的 310 萬美元現金，如果你想這麼稱呼的話。然後，有 40 萬美元與我們出售的資產相關，我們在初始期限內收取租金。這是第二個。 ——我的意思是，對不起，第三季。一切都在第三季度，這可能會正常化。

Well, the offset is in the third quarter, $3.1 million, but the impact -- the negative impact from the $250 per month is ratably over the third quarter and fourth quarter?

嗯，抵銷額是在第三季度，310 萬美元，但影響——每月 250 美元的負面影響在第三季和第四季相當明顯？

Correct.

正確的。

Okay. In terms of the purchase options, you said you don't expect them to be exercised. Do you do you feel that way also for what you just offered ALG?

好的。就購買選擇權而言，您表示您預計不會行使這些選擇權。您對剛剛提供給 ALG 的服務也有同樣的感覺嗎？

No, that was always intended to be a takeout to agency financing. So we think that they still -- they were already in process of agency financing. So we think that will continue.

不，這一直是為了機構融資的外賣。所以我們認為他們仍然——他們已經在進行機構融資。所以我們認為這種情況將會持續下去。

Yeah, that that we do expect, I mean, anticipate.

是的，我們確實期望，我的意思是，預期。

Any you have it out to 2028, depending on what we are talking about, what should we expect something happening this year, or any idea of when this could trigger?

你是否知道 2028 年會發生什麼，這取決於我們正在談論的內容，我們預計今年會發生什麼，或知道什麼時候會觸發？

One proper year probably.

大概是一年吧。

It'll probably be for -- not all at one time. It will be -- some properties are at different times. So possibly a few at the end of the year, but mostly it's '25, and I would say, sort of pro rata through '25.

它可能是為了——而不是一次性完成。某些屬性會在不同的時間出現。所以可能會在年底發生一些，但大多數是在 25 年，我想說，按比例到 25 年。

And you are saying the payback happens in one way through the purchase option exercise because then you just -- you figured that into the purchase option math, is that right, and to get you (multiple speakers)

你說的是透過購買選擇權練習以一種方式進行回報，因為然後你就將其計算到了購買選擇權數學中，對嗎？（多個發言者）

Correct. Because of the cross-collateralization, funds received in excess of the purchase price would relieve other liabilities owed to LTC across all investments.

正確的。由於交叉抵押，收到的超過購買價格的資金將減輕所有投資中欠 LTC 的其他負債。

Okay. So, I guess I am curious as to why you gave a purchase option on all three JVs, and not just the one where there is problems. Is it your intention to really essentially get out of -- I know ALG has come to the rescue for you and that they have been a partner in many ways. But is your ultimate goal to sort of exit entirely and that’s why you get the purchase options across the board?

好的。因此，我想我很好奇為什麼您對所有三家合資企業都提供了購買選擇權，而不僅僅是存在問題的合資企業。你真的打算擺脫——我知道 ALG 已經來拯救你了，而且他們在很多方面都是合作夥伴。但您的最終目標是完全退出嗎？

The original had a purchase option. So the 11-property portfolio on which we gave the deferrals, that already had the purchase option.

原版有購買選項。因此，我們推遲了 11 處房產的投資組合，它們已經有了購買選擇權。

Right. Right.

正確的。正確的。

The others two loans that converted, yeah, we give purchase options on the two loans that converted to retain the integrity of what the original investment was, which, as Clint pointed out, was short term, kind of bridged to agency financing.

另外兩筆轉換的貸款，是的，我們對兩筆轉換的貸款提供了購買選擇權，以保留原始投資的完整性，正如克林特指出的那樣，這是短期的，有點與機構融資掛鉤。

Okay. And you can return that to just see it because they are Medicaid waiver, affordable senior living product. We just think that's probably a better long-term solution from permanent financing through agency.

好的。您可以將其退回來查看，因為它們是醫療補助豁免、負擔得起的高級生活產品。我們只是認為，透過代理商進行永久融資可能是更好的長期解決方案。

Okay. Last for me, not an ALG question, but more big picture. I think we are all hoping for the end of the word deferral to happen soon, post-pandemic. Would you say that barring this situation, you are really in a much better spot from that standpoint? Or could you still be talking about some deferral situation for other operators down the road or is there watch list that you still have your eye on? Thanks.

好的。最後對我來說，不是 ALG 問題，而是更宏觀的問題。我想我們都希望在疫情結束後能夠盡快結束延期。您是否會說，排除這種情況，從這個角度來看，您真的處於更好的境地？或者您仍在談論其他運營商的一些延期情況，或者您仍在關注觀察名單？謝謝。

Right now, we've seen coverage starting to tick up a little bit in our portfolio on the private pay side. We view that to be positive. Skilled nursing is getting Medicaid rate increases. So right now, those are positive aspects, going forward.

目前，我們已經看到我們的投資組合中私人支付方面的覆蓋範圍開始增加。我們認為這是積極的。熟練的護理人員正在提高醫療補助率。所以現在，這些都是向前發展的正面面向。

Michael Carroll, RBC Capital Markets.

麥可卡羅爾，加拿大皇家銀行資本市場部。

Yeah. Thanks. Just real quick on ALG, how broad based of an issue is it? I know you offered the deferrals on one group of assets, but then you did give them incremental dollars related to a new mortgage loan on another group of assets. So are -- is it the issue just the problem with assets that you gave the deferrals to or did the other group need additional capital through the incremental mortgage loan that you provided?

是的。謝謝。快速了解 ALG，這個問題的基礎有多廣泛？我知道您為一組資產提供了延期，但隨後您確實向他們提供了與另一組資產的新抵押貸款相關的增量美元。那麼問題是否只是您延期提供的資產問題，還是其他群體需要透過您提供的增量抵押貸款獲得額外資本？

The assets we gave the deferral on. (multiple speakers)

我們推遲延期的資產。（多個發言者）

So what was the reasoning behind the mortgage loans? So why did you -- when you transitioned your investment in the JV, from a mortgage loan to a JV, you provided an additional capital too to that JV. So what’s the reason in providing that additional capital?

那麼抵押貸款背後的原因是什麼？那麼，為什麼當您將對合資企業的投資從抵押貸款轉變為合資企業時，您也向該合資企業提供了額外的資本。那麼提供額外資本的原因是什麼？

Well, they had different investor groups in those two portfolios, and we were buying into that where there was positive value. So we had to contribute to participate in that. There were some funds that were used for security. We hold -- as part of the overall negotiation, we are holding security that -- a security deposit on that, real estate tax impound, things of that nature, so -- nothing came out of that portfolio. So they're just part of the overall transaction on the conversion.

嗯，這兩個投資組合中有不同的投資者群體，我們在有正價值的地方買入。所以我們必須做出貢獻來參與其中。有一些資金用於安全。作為整體談判的一部分，我們持有保證金、扣押房地產稅等類似性質的東西，所以，該投資組合中沒有任何結果。因此，它們只是整個轉換交易的一部分。

Okay. Did they pay out investors with that additional $8 million -- I think it was $8 million, or was it just to go pay back like accrued taxes? Is that what you said?

好的。他們是否向投資者支付了額外的 800 萬美元——我認為是 800 萬美元，還是只是像應計稅款一樣償還？是你說的嗎？

Taxes. We took security. They brought current, some AP, things like that. It all stayed within the portfolio. There were no distributions log.

稅收。我們採取了安全措施。他們帶來了最新的、一些美聯社之類的東西。一切都留在投資組合內。沒有分發日誌。

Okay. And then related to the agency debt, I guess on the purchase options over the next few years, how long does it take to get agency debt? I thought that was like a 12-month process. I mean, do they need to stabilize the assets at a certain level before they want to go access it? Is that why the purchase option is over the next few years?

好的。然後與代理債務相關，我想在未來幾年的購買選擇上，需要多長時間才能獲得代理債務？我認為這就像一個 12 個月的過程。我的意思是，他們是否需要將資產穩定在一定水平才能訪問？這就是未來幾年購買選擇權的原因嗎？

Correct. Just afford them time to go into it. Does take a while. Although on the portfolio that has the 13 properties for $65 million, they've already been in the process of that. In addition, they are looking at the USDA as financing as this is an affordable senior living product. There is a financing mechanism through the USDA that does provide agency financing spread to rural markets, and that is a product that they were pursuing and the rates are advantageous for them to use that financing mechanism.

正確的。只要給他們時間去參與就好了。確實需要一段時間。儘管在投資組合中擁有 13 處房產，價值 6500 萬美元，但他們已經在這樣做了。此外，他們正在尋求美國農業部的融資，因為這是一種負擔得起的老年生活產品。美國農業部有一種融資機制，可以向農村市場提供機構融資，這是他們所追求的產品，而且利率對他們使用這種融資機制是有利的。

And this operator has experience in that. He already has USDA financing. So he knows how to do it and the qualifications thereof.

這位操作員有這方面的經驗。他已經獲得了美國農業部的資助。所以他知道如何做以及這樣做的資格。

Okay. Could we expect these purchase options to happen sooner rather than later, if they are already in the process of getting some of the secured financing?

好的。如果他們已經在獲得一些擔保融資，我們是否可以預期這些購買選擇會儘早發生？

I think you're probably going to see it. There could be some toward the end of this year, Mike, but as I mentioned previously, it's probably going to be over the course of 2025. It will all not all be financed out at one time. It will be in chunks. But we would expect that to happen over the course of 2025.

我想你可能會看到它。麥克，今年年底可能會有一些，但正如我之前提到的，可能會在 2025 年左右。這筆資金不會一次全部到位。它將分成大塊。但我們預計這將在 2025 年發生。

But we are first money out.

但我們首先要出錢。

We are first money out, Mike. So it's not like -- it's going to be a percentage allocation on the first asset that gets sold or gets refinanced. We are first one money out.

我們是第一個出錢的人，麥克。所以它不像——這將是第一個被出售或再融資的資產的百分比分配。我們是第一個出錢的。

Austin Wurschmidt, KeyBanc Capital Markets.

Austin Wurschmidt，KeyBanc 資本市場。

Hi. Thanks. Just one clarification for me, I understand the puts and takes for annual guidance being affirmed, but what more than offset the $1.5 million rent deferral in 2Q versus the quarterly guidance you gave last quarter?

你好。謝謝。我需要澄清一點，我理解年度指導的看跌期權和承受金額被確認，但與您上季度給出的季度指導相比，還有什麼能夠抵消第二季度 150 萬美元的租金遞延呢？

I'm not sure I understand the question you're saying.

我不確定我是否理解你說的問題。

Because it was converted to financing.

因為它轉成了融資。

Oh, yeah. So it's in FFO guidance, so your financing receivable and your mortgage loan receivable, it has the same effective interest method. So the accounting is not any different. So the deferral then go through FFO because of effective interest. It does affect FAD. But the guidance we're giving is FFO guidance.

哦，是的。所以在FFO指導下，所以你的融資應收帳款和你的抵押貸款應收帳款，它有相同的有效利率方法。所以會計沒有什麼不同。因此，由於實際利息，延期將透過 FFO 進行。它確實影響 FAD。但我們給的指導是 FFO 指導。

Right, right. And then you still came in, I guess, $0.01 above the high end of that range. Was there something else specific that I guess drove the quarterly achieved amount higher than what you had forecasted?

對，對。然後我猜你的價格仍然比該範圍的高端高出 0.01 美元。我認為還有其他具體因素導致季度實現的金額高於您的預測嗎？

No, it was just -- it was basically rounding.

不，這只是——基本上是四捨五入。

There are no additional questions in the queue at this time. I would now like to turn the floor back over to Wendy Simpson for any closing remarks.

目前隊列中沒有其他問題。現在我想請溫蒂辛普森發表結束語。

Thank you, again, everyone, for joining us and having these clarifying questions. I know it was a complicated transaction and we tried to explain it both in our Q, in our supplemental, and in our prepared remarks. But indeed, if you still have questions to run your model, call Pam. And we look forward to talking to you next quarter. Have a great day.

再次感謝大家加入我們並澄清這些問題。我知道這是一項複雜的交易，我們試圖在問題、補充資料和準備好的評論中對其進行解釋。但事實上，如果您對運行模型仍有疑問，請致電 Pam。我們期待下個季度與您交談。祝你有美好的一天。

Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝大家。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。