Westlake VIllage, CA-based LTC Properties announced a net income of $1.8 million in the second quarter Thursday afternoon, compared with $20.4 million in the same quarter of 2019. 

The real estate investment trust reported that much of this decrease can be attributed to a $17.7 million write-off of straight-line rent receivable and lease incentive balances related to an affiliate of Senior Lifestyle. The firm announced during its second quarter earnings call Friday that it has put Senior Lifestyle on a cash basis as of July 1, due to a shortfall in May and June rent payments.

“In cooperation with Senior Lifestyle, we are evaluating our options for the portfolio, which may include seeking new operators for the 23 properties and/or pursuing sales of some of them,” Wendy Simpson, chairman and CEO of LTC Properties, said on the call. “A split of the portfolio among several different regional operators, some of whom could be new to LTC Properties, provides an opportunity to reduce portfolio concentration while building relationships with new operators with whom we can grow.”

The REIT reported funds from operations of $12 million for the second quarter, compared with $29.7 million in the same quarter last year. Excluding the Senior Lifestyle write-off, LTC posted an FFO per diluted common share of 76 cents for the quarter, compared with 75 cents for the second quarter of 2019. LTC also consolidated its four leases with Brookdale Senior Living Communities, Inc. into one master lease and extended the term by one year to Dec. 31, 2021.

Simpson noted during the call that the firm is continuing to court potential acquisition candidates but doesn’t expect any major transactions to take place this year.

“I do believe, however, that LTC will continue to play a strategic and important role in seniors housing and care financing over the long-term,” she concluded.

See also: COVID-19 introduces uncertainties, lessons for senior living: LTC Properties