LTC Properties recorded a net income available to common stockholders of $63.4 million, or $1.60 per diluted share, for the first quarter of 2020, according to earnings information released Monday. That’s compared with a net income of $20.3 million, or $0.51 per diluted share, for the same period in 2019.
The improvement primarily was due to a $43.9 million net gain on the sale of properties and higher rental and interest income in the first quarter of 2020, partially offset by lower income from investment in unconsolidated joint ventures and higher general and administrative expenses, the company said in a statement.
The Westlake Village, CA-based real estate investment trust also reported that its fund level from operations was $29.2 million for the quarter, compared with last year’s $29.9 million. Its funds from operations per diluted common share was $0.74. Last year, it was $0.75. The decrease in FFO and FFO per diluted common share was primarily due to lower income from unconsolidated joint ventures and higher general and administrative expenses during the first quarter of 2020, partially offset by higher rental and interest income, executives said.
During its earnings call with investors Monday, LTC Properties President, CEO and Chairman Wendy Simpson noted that a handful of the REIT’s operating partners have requested rent deferrals, adding that she believes the second quarter of 2020 will be even more challenging for our operators than the first. She confirmed, however, that the REIT remains highly liquid and conservatively capitalized.
“Although the market has become more uncertain with respect to our 2020 growth, we continue to lay a foundation that will allow us to act when the time is right and take advantage of opportunities as they arise,” Simpson said. “While some banks and private equity are now pulling back from seniors housing and senior care investments, we are here to fill the void as committed long-term investors.”
Simpson added that, given the continued uncertainty faced by its operators in the second quarter and beyond, LTC was suspending its 2020 guidance.