Real estate investment trusts Ventas and LTC Properties held their fourth-quarter and full year 2021 earnings calls on Friday, and National HealthCare Corp. has released data related to those time periods.

Ventas

2021 began and ended with “two very positive developments,” Deborah Cafaro, chairman and CEO of Ventas, said Friday during the Chicago-based Real estate investment trust’s fourth-quarter and full year 2021 earnings call.

“At the beginning of the year, we rolled out life-saving vaccines in our senior housing communities, to keep residents and caregivers safe from COVID-19. And as we close out 2021 and begin a new year, we look forward to posting growth in the first quarter and sustained improvement in our senior housing business through 2022,” she said.

The company’s results for the fourth quarter exceeded the REIT’s expectations due to the performance in the senior housing and medical office sectors, Cafaro said. In the fourth quarter of 2021 versus the fourth quarter of 2020, net operating income in the senior housing operating portfolio grew by 200 basis points (2%) to 83.4%. Rate and revenue grew for the first time since the start of the pandemic, the REIT noted; same-store revenue increased 3.3% year-over-year.

Moving into the first quarter of 2022, Cafaro said, the company is projecting 10% revenue growth in its senior housing operating portfolio. Senior housing recovery is underway, she said, noting accelerating demand, rate increases and improving clinical conditions in communities. 

Executive Vice President of Senior Housing J. Justin Hutchens said that “demand remains robust with January lead volumes at all-time highs since the onset of the pandemic and clinical conditions are dramatically improving.”

Read more about the earnings call at McKnight’s Senior Living.

LTC Properties

With several investments completed in the fourth quarter and others planned for 2022, LTC Properties Chair and CEO Wendy Simpson said Friday that she remains “cautiously optimistic” for the year ahead.

“It’s been a busy fourth quarter and a busy start to the new year. We are very proud not only of our operators who have withstood an extremely trying 2 years but of LTC and what we’ve been able to accomplish,” Simpson said on the Westlake Village, CA-based real estate investment trust’s fourth-quarter and full year 2021 earnings call. “We’ve strengthened our portfolio strategically deployed capital and through asset sales have generated additional capital that we can put to work for our shareholders.”

According to a press release  issued in conjunction with the earnings call, subsequent to December 31, 2021, LTC completed the following:

  • Entered into an agreement with the current operator to sell a 74-unit assisted living community in Virginia for $16.9 million. The community has a gross book value of $16.9 million and a net book value of $15.7 million. LTC anticipates recognizing approximately $1.3 million of gain on sale in the second quarter of 2022. In connection with the sale, the current operator will pay a $1.2 million lease termination fee;
  • An operator of two assisted living communities in California with a total of 232 units exercised the purchase option under their lease for $43.7 million. The communities have a gross book value of $31.8 million and a net book value of $17.0 million. LTC anticipates recognizing approximately $26.0 million of gain on sale in the second quarter of 2022;
  • Funded $5.8 million under HMG’s working capital loan. Accordingly, the outstanding balance under HMG’s working capital loan is $15.7 million with a remaining availability of up to $9.3 million; and
  • Provided a total of $867,000 of deferred rent and $480,000 of rent abatement in January and February 2022. LTC has agreed to provide rent deferrals of up to $452,000, and abatements of up to $240,000 for March 2022.

Co-President and Chief Financial Officer Pam Kessler said that total revenue realized decreased $6.8 million compared with last year’s fourth quarter, primarily due to lower rental income related to the transition of the former Senior Care portfolio, lower rental income related to the re-leasing of the former Senior Lifestyle portfolio and abated and deferred rent.

Read more about the earnings call at McKnight’s Senior Living.

National HealthCare Corp.

Murfreesboro, TN-based National HealthCare Corp. issued a press release Friday in lieu of a call to report its year-end and full-year 2021 results.

The company reported a net operating revenues increase of 4.5% for the year ended 2021, which NHC said primarily was driven by the June controlling equity interest acquisition of Caris Healthcare, a hospice provider with 28 agencies.

Net income for 2021 was $138.5 million, compared with $41.8 million for 2020. Adjusted net income for 2021 was $62.6 million, compared with $58.5 million for 2020, a 7% increase.

Net income in the fourth quarter was $15.7 million, compared with $27.5 million for the same quarter in 2020. Adjusted net income for the quarter showed a 14.3% increase ($15.8 million compared with $13.8 million) versus the same time period in 2020.

The GAAP diluted earnings per share were $1.02 compared to $1.79 for the quarters ended Dec. 31, 2021 and 2020, respectively. Adjusted diluted earnings per share were $1.02 and $0.90 for the quarters ended Dec. 31, 2021 and 2020, respectively.