LTC Properties, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $49.0 million, a decrease of 4.5% from $51.4 million in the same period last year. The decline was primarily attributed to a drop in rental income, which fell to $31.4 million from $33.5 million, alongside a decrease in interest income from mortgage loans, which dropped to $9.2 million from $12.4 million. Despite the revenue decline, the company saw a significant reduction in interest expenses, which decreased to $7.9 million from $11.0 million, contributing to a net income of $22.2 million, down from $24.7 million year-over-year.
In terms of operational changes, LTC Properties made strategic adjustments to its lease agreements, including the termination of two existing leases with a single operator, which were consolidated into a new master lease with a five-year term. This new lease is expected to generate annual cash rent of $2.5 million, escalating by 2% annually. Additionally, the company transitioned a portfolio of 12 memory care communities from a triple-net lease structure to a new seniors housing operating portfolio under the RIDEA structure, which is anticipated to enhance operational oversight and financial reporting.
The company’s total assets as of March 31, 2025, stood at $1.78 billion, slightly down from $1.79 billion at the end of 2024. LTC Properties maintained a strong liquidity position with $681.2 million available, including $23.3 million in cash and cash equivalents and $276.2 million available under its unsecured revolving line of credit. The company’s total equity was reported at $1.05 billion, reflecting a modest increase from $1.05 billion at the end of the previous fiscal year.
Looking ahead, LTC Properties expressed optimism regarding its investment strategy, particularly with the implementation of the RIDEA structure, which is expected to provide additional investment opportunities. The company plans to continue monitoring the financial health of its operators and the broader economic environment, which may impact its future performance. LTC Properties remains committed to maintaining its REIT status and providing consistent dividends to its shareholders, having declared a monthly cash dividend of $0.19 per share for the upcoming months.
About LTC PROPERTIES INC
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