LTC Properties continues its “mission of focus” on sales and investments announced in July, Chairman and CEO Wendy Simpson said on Friday’s third-quarter earnings call.

“And as a result of that strategy, we have made progress towards those identified goals, including very positive results regarding the Brookdale and Prestige portfolios,” she said. “We also closed the remaining transactions in the pipeline with funding of that transaction expected early next year.”

Net income for the quarter increased by $8.9 million, primarily due to higher interest income from new investments. Fully diluted funds from operations per share improved to $0.65 for the third quarter, up from $0.60 in the same quarter in 2022. 

Pam Kessler, LTC Properties’ co-president and chief financial officer, said that total year-over-year revenue for the third quarter increased by $5.8 million.

“The improvement related primarily to $3.5 million more interest income from acquisitions accounted for as financing receivables and $1.9 million more of interest income from 2023 mortgage loan origination,” she said.

“Additionally, interest and other income increased by $453,000, primarily due to a recent mezzanine loan origination,” Kessler added.

According to a press release issued in conjunction with the earnings call, third-quarter financial results were affected by higher interest income from financing receivables due to the acquisition of 11 assisted living and memory care communities during the first quarter and three skilled nursing facilities during the third quarter of 2022.

Since the beginning of the year, the Westlake Village, CA-based real estate investment trust has originated almost $270 million in transactions and generated more that $51 million in sales proceeds, resulting in net gains totaling approximately $21 million, according to Simpson. 

“Of the $51 million in sales proceeds to date, $14 million was received in the third quarter. We expect to receive additional sales proceeds in the $27 million to $28 million range throughout the remainder of 2023, primarily related to expected sales of a portion of the Brookdale portfolio,” Simpson said.

Kessler said that the REIT currently has $11.3 million of cash on hand and approximately $38 million available under a line of credit, with approximately $362 million outstanding and about $129 million available under its at-the-market offering.

“This gives us total liquidity of almost $178 million,” Kessler said. “We anticipate receiving sales proceeds later this year in the range of $27 million to $28 million, which will be used to pay down our line of credit.”

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