In spite of pandemic-related challenges, LTC Properties executives are looking forward to better times ahead.

“Occupancy is increasing, demand for needs-based care is growing, and we’re once again making strategic investments. It has not been easy getting to this point, but I couldn’t be more proud of our industry, operators and employees for the grit they have shown since the start of the pandemic,” Wendy Simpson, chairman, president and CEO of LTC Properties said Friday during a third-quarter earnings call.

The Westlake Village, CA-based real estate investment trust, she said, has ”successfully eliminated several ongoing operator challenges, executed on $46 million in new investments and have an active and healthy pipeline.” 

During the third quarter, the REIT gained $2.7 million related to the sale of a skilled nursing facility in Washington and has transitioned 18 properties from its Senior Lifestyle buildings, with the 19th expected shortly in New Jersey.

Clint Malin, co-president and chief investment officer, said that with respect to the 11 properties in the REIT’s Senior Care portfolio, “in late August, we reached a settlement with Senior Care and Aubrey Health Services under which LTC made a one-time payment of $3.25 million in exchange for cooperation and assistance in facilitating an orderly transition of the portfolio.” As of Oct. 1, he said, the entire 11-property portfolio was leased to a Texas affiliate of HMG Healthcare under a one-year master lease, with rent based on cash flows.

According to Malin, the REIT’s investment pipeline is healthy, and LTC Properties has ‘sufficient liquidity and flexibility to provide strong regional operators with creative financing solutions.”

Pam Kessler, chief financial officer and secretary, said that total revenue was down $701,000 compared with the third quarter of last year, “resulting principally from unpaid rent from Senior Care and Senior Lifestyle, abated and deferred rent and the sale of a property in Washington.” She said the losses were partially offset by the write-off of straight-line rent receivable balances in the prior-year quarter, rent received from releasing of the 18 Senior Lifestyle properties, completed development projects and increase in property tax revenue, annual rent escalation, capital improvement funding and higher payments from Anthem Memory Care. 

“What I’d most like you to take away from this call is that while the pandemic certainly caused strife in our industry, I believe we are firmly in the midst of a recovery,” Simpson said.

For additional coverage of the call, see McKnight’s Senior Living and McKnight’s Long-Term Care News.