LTC Properties reported fourth quarter and full year 2022 earnings, and other than the large new joint venture (previously announced), the big news was that tenant Anthem repaid $1.5 million of temporary rent reduction and paid $900,000 of monthly rent in the fourth quarter. As a result, Anthem has now paid the full rent for 2022, which is a bit of a relief.
The REIT is still not out of the woods as other tenants are still recovering slowly, but at least they can see through to the clearing. However, coverage ratios still need to increase. Assisted living EBITDARM and EBITDAR coverage was 1.02x and 0.80x, respectively, in the third quarter (lease information lags by a quarter), but was 0.91x and 0.69x, respectively, when the provider relief funds are removed.
For their skilled nursing portfolio, EBITDARM and EBITDAR coverage were 1.95x and 1.49x, respectively, in the third quarter, but were 1.47x and 1.01x, respectively, without the provider relief funds. Given how hard the SNF industry was hit during the pandemic, that is not too bad.
As of January 31, 2023, same-community private pay senior living occupancy was 79% based on 66% of their customers reporting the information. This compares with 81% on September 30, 2022, and 79% on June 30, 2022. Not exactly the trend one wants to see, but at least steady. For comparison purposes, in 2019 census was 87%, so they still have 800 basis points to go.
On the skilled nursing side, occupancy was 73% on January 31, 2023, which is the same as the end of both the second and third quarters of 2022. In 2019, occupancy averaged 80%, so a similar 700 basis point differential from pre-pandemic times.
From a growth perspective, when their previously announced $121.3 million joint venture acquisition closes, LTC Properties will be ahead of their 2022-dollar amount of acquisitions and financings. And there is still a lot of time left in the year. Stay tuned.
