Executive Overview
Business and Investment Strategy
We are a real estate investment trust ("REIT") that invests in seniors housing
and health care properties through sale-leasebacks, mortgage financing, joint
ventures and structured finance solutions including preferred equity and
mezzanine lending. We seek to create, sustain and enhance stockholder equity
value and provide current income for distribution to stockholders through real
estate investments in seniors housing and health care properties managed by
experienced operators. Our primary seniors housing and health care property
classifications include skilled nursing facilities ("SNF"), assisted living
facilities ("ALF"), independent living facilities ("ILF"), memory care
communities ("MC") and combinations thereof. We also invest in other ("OTH")
types of properties, such as land parcels, projects under development ("UDP")
and behavioral health care hospitals. To meet these objectives, we attempt to
invest in properties that provide opportunity for additional value and current
returns to our stockholders and diversify our investment portfolio by geographic
location, operator, property classification and form of investment.
We conduct and manage our business as one operating segment for internal
reporting and internal decision-making purposes. For purposes of this Annual
Report on Form 10-K and other presentations, we generally include ALF, ILF, and
MC in the ALF property classification. We have been operating since August 1992 .
The following graph summarizes our gross investments as of
[[Image Removed: Diagram
Description automatically generated with
medium confidence]]
Substantially all of our revenues and sources of cash flows from operations are
derived from operating lease rentals, interest earned on outstanding loans
receivable and income from investments in unconsolidated joint ventures. Our
investments in owned properties, mortgage loans, mezzanine loans and preferred
equity investments represent our primary source of liquidity to fund
distributions and are dependent upon the performance of the operators on their
lease and loan obligations and the rates earned thereon. To the extent that the
operators experience operating difficulties and are unable to generate
sufficient cash to make payments to us, there could be a material adverse impact
on our consolidated results of operations, liquidity and/or financial condition.
To mitigate this risk, we monitor our investments through a variety of methods
determined by property type and operator. Our monitoring process includes
periodic review of financial statements for each facility, periodic review of
operator credit, scheduled property inspections and review of covenant
compliance.
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In addition to our monitoring and research efforts, we also structure our
investments to help mitigate payment risk. Some operating leases and loans are
credit enhanced by guaranties and/or letters of credit. In addition, operating
leases are typically structured as master leases and loans are generally
cross-defaulted and cross-collateralized with other loans, operating leases or
agreements between us and the operator and its affiliates.
Depending upon the availability and cost of external capital, we anticipate
making additional investments in health care related properties. New investments
are generally funded from cash on hand, temporary borrowings under our unsecured
revolving line of credit and internally generated cash flows. Our investments
generate internal cash from rent and interest receipts and principal payments on
mortgage loans receivable. Permanent financing for future investments, which
replaces funds drawn under our unsecured revolving line of credit, is expected
to be provided through a combination of public and private offerings of debt and
equity securities and secured and unsecured debt financing. The timing, source
and amount of cash flows provided by financing activities and used in investing
activities are sensitive to the capital markets' environment, especially to
changes in interest rates. Changes in the capital markets' environment may
impact the availability of cost-effective capital.
We believe our business model has enabled and will continue to enable us to
maintain the integrity of our property investments, including in response to
financial difficulties that may be experienced by operators. Traditionally, we
have taken a conservative approach to managing our business, choosing to
maintain liquidity and exercise patience until favorable investment
opportunities arise.
COVID-19
OnMarch 11, 2020 , theWorld Health Organization declared the outbreak of coronavirus ("COVID-19") as a pandemic, and onMarch 13, 2020 ,the United States declared a national emergency with regard to COVID-19. The COVID-19 pandemic has had repercussions across regional and global economies and financial markets. The outbreak of COVID-19 in many countries, includingthe United States , has significantly and adversely impacted public health and economic activity, and has contributed to significant volatility, dislocations and liquidity disruptions in financial markets. The operations and occupancy levels at our properties have been adversely affected by COVID-19 and could be further adversely affected by COVID-19 or another pandemic especially if there are infections on a large scale at our properties. The impact of COVID-19 has included, and another pandemic could include, early resident move-outs, our operators delaying accepting new residents due to quarantines, potential occupants postponing moves to our operators' facilities, and/or hospitals cancelling or significantly reducing elective surgeries thereby creating fewer people in need of skilled nursing care. Additionally, as our operators have responded to the pandemic, operating costs have begun to rise. A decrease in occupancy, ability to collect rents from residents and/or increase in operating costs could have a material adverse effect on the ability of our operators to meet their financial and other contractual obligations to us, including the payment of rent. In recognition of the pandemic impact affecting our operators, we have agreed to rent abatements totaling$4.5 million and rent deferrals for certain operators totaling$7.4 million betweenApril 2020 andDecember 2021 , of which$1.7 million subsequently has been paid. The$10.2 million in rent abatements and deferrals, net with repayments, represented approximately 4% of ourApril 2020 throughDecember 2021 contractual rent, excludingSenior Lifestyle Corporation ("Senior Lifestyle"),Senior Care, LLC ("Senior Care") and Senior Care's parent companyAbri Health, LLC ("Abri Health "). The remaining balance of deferred rent is due to LTC over the next 36 months or upon receipt of government funds from theU.S. Coronavirus Aid, Relief, and Economic Security (the "CARES Act"). During 2021, we proactively provided additional financial support to the majority of our operators by reducing by 50% 2021 rent escalations. This support was provided in the form of a credit to the majority of our operating partners. The one time rent escalation reduction had an approximate$0.5 million impact on our 2021 Generally Accepted Accounting Principles ("GAAP") revenue and$1.3 million impact on cash revenue. 33 Table of Contents Portfolio Overview
The following tables summarize our real estate investment portfolio as of
Twelve Months Ended
December 31, 2021
Number of Percentage Percentage
Number of SNF ALF Gross of Rental of Total
Owned Properties Properties (1) Beds (2) Units (2) Investments Investments Revenue Revenues
Assisted Living 102 - 5,798 $ 844,301 46.8 % $ 54,449 38.2 %
Skilled Nursing 50 6,154 212 552,896 30.7 % 51,668 36.3 %
Other (3) 1 118 - 11,360 0.6 % 967 0.7 %
Total Owned Properties 153 6,272 6,010 1,408,557 78.1 % 107,084 (5) 75.2 %
Number of Percentage Interest Income Percentage
Number of SNF ALF Gross of from Mortgage of Total
Mortgage Loans Properties (1) Beds (2) Units (2) Investments Investments Loans Revenues
Assisted Living 14 - 591 59,886 3.3 % 564 0.4 %
Skilled Nursing 23 2,916 - 286,249 15.9 % 32,213 22.7 %
Other (4) - - - 1,780 0.1 % 34 - %
Total Mortgage Loans 37 2,916 591 347,915 19.3 % 32,811 23.1 %
Number of Percentage Interest Percentage
Number of SNF ALF Gross of and other of Total
Notes Receivable Properties (1) Beds (2) Units (2) Investments Investments Income Revenues
Assisted Living (6) 2 - 340 18,586 1.0 % 882 0.6 %
Skilled Nursing (7) - - - 10,037 0.6 % 105 0.1 %
Total Notes Receivable 2 - 340 28,623 1.6 % 987 0.7 %
Number of Percentage Income from Percentage
Number of SNF ALF
Gross of Unconsolidated of
Unconsolidated Joint Ventures
Investments Investments Joint Ventures Revenues Assisted Living (8) 1 - 95 6,340 0.3 % 450 0.3 % Under Development (9) - - - 13,000 0.7 % 967 0.7 %
Total Unconsolidated Joint Ventures 1 - 95
19,340 1.0 % 1,417 1.0 % Total Portfolio 193 9,188 7,036$ 1,804,435 100.0 % $ 142,299 100.0 % Number Number of Percentage of SNF ALF Gross of Summary of Properties by Type Properties (1) Beds (2) Units (2) Investments Investments Assisted Living 119 - 6,824$ 929,113 51.4 % Skilled Nursing 73 9,070 212 849,182 47.2 % Under Development - - - 13,000 0.7 % Other (3) (4) 1 118 - 13,140 0.7 % Total Portfolio 193 9,188 7,036$ 1,804,435 100.0 %
(1) We have investments in owned properties, mortgage loans, notes receivable and
unconsolidated joint ventures in 28 states to 35 different operators.
(2) See Item 2. Properties for discussion of bed/unit count.
(3) Includes three parcels of land held-for-use and one behavioral health care
hospital.
(4) Includes one parcel of land securing a first mortgage held for future
development of a post-acute skilled nursing center.
(5) Excludes variable rental income from lessee reimbursement of our real estate
taxes, adjustments for collectibility of rental income and sold properties.
Includes a mezzanine loan on a 204-unit ILF/ALF/MC in
(6) loan on a 136-unit ILF in
rates between 5% and 7.5% with maturities between 2023 and 2031.
(7) Includes two working capital loans with interest between 4% and 6.5% and
maturities between 2022 and 2030.
Includes a preferred equity investment in an entity that developed and owns a
95-unit ALF/MC in
(8) investment. The preferred equity investment earns an initial cash rate of 7%
increasing to 9% in year four until the internal rate of return (“IRR”) is
8%. After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging
between 12% to 14% depending on the timing of redemption.
Represents a preferred equity investment in an entity that will develop and
(9) own a 267-unit ILF/ALF in
estimated total investment. The preferred equity investment earns an initial
cash rate of 8% with an IRR of 12%.
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As of December 31, 2021 , we had $1.4 billion in carrying value of net
investments, consisting of $1.0 billion or 72.5% invested in owned properties,
$0.3 billion or 24.2% invested in mortgage loans secured by first mortgages,
$28.3 million or 2.0% in notes receivable and $19.3 million or 1.3% in
unconsolidated joint ventures.
Rental income and interest income from mortgage loans represented 78.0% and
21.1%, respectively, of Total revenues on the Consolidated Statements of Income
for the year ended December 31, 2021 . In most instances, our lease structure
contains annual rental escalations. Our leases that contain fixed annual rental
escalations and/or have annual rental escalations that are contingent upon
changes in the Consumer Price Index, are generally recognized on a straight-line
basis over the minimum lease period. Certain leases have annual rental
escalations that are contingent upon changes in the gross operating revenues of
the property. This revenue is not recognized until the appropriate contingencies
have been resolved. For the year ended December 31, 2021 , we recognized
$0.5 million in straight-line rental income and $0.6 million in amortization of
lease incentives. For the remaining leases in place at December 31, 2021 ,
assuming no modification or replacement of existing leases and no new leased
investments are added to our portfolio, except for the potential subsequent
lease extensions and the leases reported below under Update on Certain
Operators, we currently expect that the non-cash straight-line rent portion of
rental income will decrease from $0.5 million in 2021 to negative $1.3 million
for projected annual 2022 which represents higher cash rent received than
recorded as rental income. Our cash rental income is projected to increase from
$122.0 million in 2021 to $126.9 million for projected annual 2022. At
December 31, 2021 , the straight-line rent receivable balance on the consolidated
balance sheet was $24.1 million .
Many of our existing leases contain renewal options that, if exercised, could
result in the amount of rent payable upon renewal being greater or less than
that currently being paid. During the year ended December 31, 2021 , we extended
the Brookdale Senior Living Communities, Inc. ("Brookdale") master lease by one
year. See below under Update on Certain Operators and Former Operators below for
further discussion of the Brookdale master lease.
Some of our lease agreements provide purchase options allowing the lessees to
purchase the properties they currently lease from us. See Item 8. FINANCIAL
STATEMENTS- Note 5. Real Estate Investments. Owned Properties for a table that
includes information about purchase options included in our lease agreements.
Update on Certain Operators and Former Operators
Senior Care and affiliates and subsidiaries filed for Chapter 11 bankruptcy inDecember 2018 . During 2019, while in bankruptcy, Senior Care assumed LTC's master lease and, inMarch 2020 , Senior Care emerged from bankruptcy. Concurrent with their emergence from bankruptcy, in accordance with the order confirming Senior Care's plan of reorganization,Abri Health was formed as the parent company of reorganized Senior Care and became co-tenant and co-obligor with reorganized Senior Care under our master lease. InMarch 2021 ,Senior Care and Abri Health (collectively, "Lessee") defaulted the lease due to failure to pay rent and additional obligations owed under the master lease. Accordingly, we sent a notice of default and applied proceeds from letter of credit to certain obligations owed under the master lease. Furthermore, we sent the Lessee a notice of termination of the master lease to be effectiveApril 17, 2021 . OnApril 16, 2021 , the Lessee filed for Chapter 11 bankruptcy. InAugust 2021 , theUnited States Bankruptcy Court approved a settlement agreement between Lessee and LTC. The settlement provided for, among other things, a one-time payment of$3.3 million from LTC to the affiliates of Lessee in exchange for cooperation and assistance in facilitating an orderly transition of the 11 skilled nursing centers from the Lessee and its affiliates to affiliates ofHMG Healthcare, LLC which occurred onOctober 1, 2021 . AtDecember 31, 2021 ,Senior Care and Abri Health do not operate any properties in our portfolio. 35 Table of ContentsSenior Lifestyle Corporation During 2020, an affiliate of Senior Lifestyle paid us$13.8 million of their$18.4 million contractual rent and we applied their letter of credit and deposits totaling$3.7 million to past due rent of$3.6 million and to their outstanding notes receivable of$0.1 million . Accordingly, we wrote-off a total of$17.7 million of straight-line rent receivable and lease incentives related to this master lease and transitioned rental revenue recognition to cash basis effectiveJuly 2020 . During 2020, we recognized$17.4 million of rental revenue from Senior Lifestyle. In 2021, Senior Lifestyle defaulted on all rent obligations under the master lease. During 2021, we transitioned 18 assisted living communities previously leased to Senior Lifestyle to five operators. These communities are located inIllinois ,Ohio ,Wisconsin ,Colorado ,Pennsylvania andNebraska . Also, during 2021, we sold threeWisconsin communities and a closed community inNebraska previously leased to Senior Lifestyle for a combined total of$35.9 million . We received total proceeds of$34.8 million and recorded a net gain on sale of$5.4 million .
Brookdale's master lease was scheduled to mature onDecember 31, 2021 . During the first quarter of 2021, we extended their term by one year through an amended master lease, with a new maturity date ofDecember 31, 2022 . Also, the renewal options under the amended master lease remained the same which provides three renewal options consisting of a three-year renewal option, a five-year renewal option and a 10-year renewal option. The notice period for the first renewal option isJanuary 1, 2022 toApril 30, 2022 . During 2020, we extended a$4.0 million capital commitment to Brookdale at a 7% yield. During 2021, we fully funded the$4.0 million and extended an additional$2.0 million to Brookdale at a 7% yield, which is available throughDecember 31, 2022 . As ofDecember 31, 2021 , nothing was funded under this additional agreement and our remaining commitment is$2.0 million . Brookdale is current on rent payments throughFebruary 2022 .
Genesis Healthcare, Inc
Genesis reported doubt regarding its ability to continue as a going concern on its Quarterly Report on Form 10-Q filed inAugust 2020 . As a result, we wrote-off$4.3 million of straight-line rent receivable related to this master lease during the third quarter of 2020 and transitioned rental revenue recognition to cash basis effectiveSeptember 2020 . During the first quarter of 2021, Genesis delisted its Class A common stock from theNew York Stock Exchange . Genesis is current on rent payments throughFebruary 2022 .
Other Operators
During the third quarter of 2020, an operator failed to pay its full contractual rent. Accordingly, we wrote-off$1.2 million of straight-line rent receivable related to this master lease. During 2020, we consolidated our two master leases with this operator into one combined master lease and agreed to abate$0.7 million of rent and allow the operator to defer rent as needed throughMarch 31, 2021 . During 2021 and 2022, the combined master lease was amended to extend the rent deferral period throughMarch 31, 2022 . The operator deferred rent of$4.6 million for the year endedDecember 31, 2021 , and$0.9 million for January throughFebruary 2022 . The operator can defer rent up to$0.5 million forMarch 2022 . Additionally, subsequent toDecember 31, 2021 , an operator of two assisted living communities inCalifornia with a total of 232 units exercised the purchase option under their lease for approximately$43.7 million . The communities have a gross book value of$31.8 million and a net book value of$17.0 million . As a result of this transaction, we anticipate recognizing approximately$26.0 million of gain on sale of real estate in the second quarter of 2022. Also, we entered into an agreement with the current operator to sell a 74-unit assisted living community inVirginia for$16.9 million . The community has a gross book value of$16.9 million and a net book value of$15.7 million . As a result of this transaction, we anticipate recognizing approximately$1.3 million of gain on sale of real estate in the second quarter of 2022. In connection with the sale, the current operator will pay a$1.2 million lease termination fee. 36 Table of Contents 2021 Transactions Overview
The following tables summarizes our transactions in 2021 (dollar amounts in
thousand):
Investment in Improvement Projects
Amount
Assisted Living Communities $ 5,846
Skilled Nursing Centers 452
Total $ 6,298
Sold Properties
Type Number Number
of of of Sales Carrying Net
Year (1) State Properties Properties Beds/Units Price Value Gain (loss) (2)
2021 n/a n/a - - $ - $ - $ 363 (3)
Florida ALF 1 - 2,000 2,626 (858)
Nebraska ALF 1 40 900 1,079 (200)
Washington SNF 1 123 7,700 4,513 2,562
Wisconsin ALF 3 263 35,000 28,295 5,595
Total 2021 6 426 $ 45,600 $ 36,513 $ 7,462
Subsequent to
total of 232 units, exercised the purchase option under the lease for
approximately
a net book value of
recognizing approximately
(1) second quarter of 2022. Additionally, we entered into an agreement to sell a
74-unit ALF in
anticipate recognizing approximately
the second quarter of 2022. In connection with the sale, the current operator
will pay a
(2) Calculation of net gain (loss) includes cost of sales.
We recognized additional gain due to the reassessment adjustment of the
(3) holdbacks related to properties sold during 2019 and 2020, under the expected
value model per Accounting Standard Codification (“ASC”) Topic 606, Contracts
with Customers (“ASC 606”).
Investment in Mortgage Loans
Originations and funding under mortgage loans receivable
Application of interest reserves
298 Scheduled principal payments received (1,175) Mortgage loan premium amortization (6) Provision for loan loss reserve (881) Net increase in mortgage loans receivable$ 87,191
(1) During 2021, we funded the following:
a. a 91-bed post-acute SNF in
The mortgage loan term is one year at a yield of 7.5%;
b. with a regional operator new to us. The mortgage loan has a three-year term
with one 12-month extension option and a yield of 7.5%;
community in
origination, we withheld an interest reserve of
c. reserve during 2021. The mortgage loan term is approximately 4 years at a
7.75% yield and includes an additional
construction of a memory care addition to the property to be funded at a later
date subject to satisfaction of various conditions;
portfolio located in North (12) and
d. operated by an existing LTC operator. At origination, we withheld an interest
reserve of
e.
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Investment in Notes Receivable
Advances under notes receivable$ 16,353 (1) Interest reserve withheld 353
Principal payments received under notes receivable (2,694)
Notes receivable reserve
(140) Net increase in notes receivable$ 13,872
Funding under working capital notes and mezzanine loans with interest ranging
between 4.0% and 8.0% and maturities between 2022 and 2031. During 2021, we
originated a
mezzanine loan has a three-year term with two 12-month extensions. The
(1) initial rate is 8.0% for the first 18 months increasing to 10.5% thereafter
with an 10.5% IRR. Additionally, we provided the operator a
working capital loan maturing in
of the 11 properties from
$9,900 under this working capital loan and funded an additional$5,750 subsequent toDecember 31, 2021 . 38 Table of Contents
Key Performance Indicators, Trends and Uncertainties
We utilize several key performance indicators to evaluate the various aspects of our business. These indicators are discussed below and relate to concentration risk and credit strength. Management uses these key performance indicators to facilitate internal and external comparisons to our historical operating results in making operating decisions and for budget planning purposes. Concentration Risk. We evaluate by gross real estate investment our concentration risk in terms of asset mix, real estate investment mix, operator mix and geographic mix. Concentration risk is valuable to understand what portion of our real estate investments could be at risk if certain sectors were to experience downturns. Asset mix measures the portion of our real estate investments that are real property or mortgage loans. Investment mix measures the portion of our investments that relate to our various property types. Operator mix measures the portion of our real estate investments that relate to our top five operators. Geographic mix measures the portion of our real estate investment that relate to our top five states.
The following table reflects our recent historical trends of concentration risk
(gross investment, in thousands):
12/31/21 9/30/21 6/30/21 3/31/21 12/31/20
Asset mix:
Real property $ 1,408,557 $ 1,407,098 $ 1,412,329 $ 1,449,062 $ 1,452,001
Loans receivable 347,915 261,437 259,641 259,874 259,843
Notes receivable 28,623 18,864 13,869 13,714 14,611
Unconsolidated joint ventures 19,340 19,340
19,340 19,340 11,340
Real estate investment mix: Assisted living communities$ 929,113 $ 868,081 $ 860,573 $ 897,154 $ 898,437 Skilled nursing centers 849,182 812,518 820,246 820,476 822,063 Under development 13,000 13,000 13,000 13,000 5,000 Other (1) 13,140 13,140 11,360 11,360 12,295 Operator mix: Prestige Healthcare (1)$ 272,453 $ 272,789 $ 272,773 $ 273,007 $ 272,976 HMG Healthcare (2) 171,920 23,705 23,705 23,705 23,705Anthem Memory Care 139,176 139,176 139,176 139,176 139,176 Brookdale Senior Living 102,921 102,261 101,240 101,012 100,613 Carespring Health Care Management 102,520 102,520 102,520 102,520 102,520 Remaining operators (2) 1,015,445 1,066,288 1,065,765 1,102,570 1,098,805 Geographic mix: Michigan$ 281,512 $ 282,022 $ 281,762 $ 281,995 $ 281,963 Texas 274,626 274,204 273,588 273,468 273,287 Wisconsin 114,538 114,288 114,250 149,403 149,403 California 106,129 105,997 105,892 105,352 105,163 Colorado 104,514 104,445 104,347 104,307 104,090 Remaining states 923,116 825,783 825,340 827,465 823,889
As of
(1) located adjacent to properties securing the
and are managed by Prestige.
During the three months ended
Care and its parent company,
(2) our portfolio as of
our “
to "Remaining operators" and our "HMG Healthcare properties" were reclassified from "Remaining operators" for all periods presented prior toDecember 31, 2021 . Credit Strength. We measure our credit strength both in terms of leverage ratios and coverage ratios. Our leverage ratios include debt to gross asset value and debt to market capitalization. The leverage ratios indicate how much of our Consolidated Balance Sheet capitalization is related to long-term obligations. Our coverage ratios include interest coverage ratio and fixed charge coverage ratio. The coverage ratios indicate our ability to service interest and fixed charges (interest). The coverage ratios are based on earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") as defined byNational Association of Real Estate Investment Trusts ("NAREIT"). EBITDAre is calculated as net income available to common stockholders (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense, (iii) real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate, (v) gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated 39
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partnerships and joint ventures. Adjusted EBITDAre is calculated as EBITDAre
adjusted for non-recurring items. Leverage ratios and coverage ratios are widely
used by investors, analysts and rating agencies in the valuation, comparison,
rating and investment recommendations of companies. The following table reflects
the recent historical trends for our credit strength measures:
Balance Sheet Metrics
Year Ended Quarter Ended
12/31/21 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20
Debt to gross asset value 38.4 % 38.4 % (1) 36.3 % (1) 34.8 % (3) 36.3 % (1) 35.8 %
Debt to market capitalization ratio 35.0 % 35.0 % (2) 34.7 % (2) 29.0 % (4) 28.7 % (6) 29.8 %
Interest coverage ratio (7) 4.4 x 4.3 x 4.3 x 4.3 x (5) 4.7 x (5) 5.3 x
Fixed charge coverage ratio (7) 4.4 x 4.3 x 4.3 x
4.3 x (5) 4.7 x (5) 5.3 x
(1) Increased due to increase in outstanding debt partially offset by increase in
gross asset value.
(2) Increased due to decrease in market capitalization and increase in
outstanding debt primarily related to investments.
(3) Decreased due to decrease in outstanding debt partially offset by decrease in
gross asset value.
(4) Increased due to decrease in market capitalization, partially offset by
decrease in outstanding debt.
(5) Decreased due to decrease in rental income partially offset by decrease in
interest expense.
(6) Decreased due to increase in market capitalization partially offset by
increase in outstanding debt.
In calculating our interest coverage and fixed charge coverage ratios above,
we use EBITDAre, which is a financial measure not derived in accordance with
GAAP (non-GAAP financial measure). EBITDAre and Adjusted EBITDAre are not
alternatives to net income, operating income or cash flows from operating
(7) activities as calculated and presented in accordance with GAAP. You should
not rely on EBITDAre and Adjusted EBITDAre as a substitute for any such GAAP
financial measures or consider it in isolation, for the purpose of analyzing
our financial performance, financial position or cash flows. Net income is
the most directly comparable GAAP measure to EBITDAre and Adjusted EBITDAre.
Year to Date Quarter Ended
12/31/21 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20
Net income $ 56,224 $ 12,930
Less (add): (Gain)/ loss on sale
(7,462) (70)
(2,702) (5,463) 773 (44)
Add: Loss on unconsolidated joint ventures
- - - - - 138 Add: Impairment loss - - - - - 3,036 Add: Interest expense 27,375 6,933
6,610 6,860 6,972 7,088
Add: Depreciation and amortization
38,296 9,449 9,462 9,508 9,877 9,839 EBITDAre$ 114,433 $ 29,242
Add: Non-recurring one-time items
5,947 (1) 869 (2) 3,895 (3) 133 (4) 1,050 (5) - Adjusted EBITDAre$ 120,380 $ 30,111
Interest expense$ 27,375 $ 6,933 $ 6,610 $ 6,860 $ 6,972 $ 7,088 Interest incurred$ 27,375 $ 6,933
Interest coverage ratio 4.4 x 4.3 x
4.3 x 4.3 x 4.7 x 5.3 x
Interest incurred$ 27,375 $ 6,933 $ 6,610 $ 6,860 $ 6,972 $ 7,088 Total fixed charges$ 27,375 $ 6,933
Fixed charge coverage ratio 4.4 x 4.3 x
4.3 x 4.3 x 4.7 x 5.3 x
(1) Represents sum of (2) to (5) below.
(2) Represents the provision for credit losses related to the origination of
(3) Represents the
(4) Represents the 50% reduction of rent escalations.
(5) Represents the write-off of straight-line rent (
of rent and interest escalations ($292 ). 40 Table of Contents
We evaluate our key performance indicators in conjunction with current
expectations to determine if historical trends are indicative of future results.
Our expected results may not be achieved and actual results may differ
materially from our expectations. This may be a result of various factors,
including, but not limited to:
? The status of the economy;
? The status of capital markets, including prevailing interest rates;
? Compliance with and changes to regulations and payment policies within the
health care industry;
? Changes in financing terms;
? Competition within the health care and seniors housing industries;
? Changes in federal, state and local legislation;
? The duration, spread and severity of the COVID-19 outbreak.
Management regularly monitors the economic and other factors listed above. We develop strategic and tactical plans designed to improve performance and maximize our competitive position. Our ability to achieve our financial objectives is dependent upon our ability to effectively execute these plans and to appropriately respond to emerging economic and company-specific trends.
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Operating Results
Year ended December 31, 2021 compared to year ended December 31, 2020 (in
thousands):
Years ended December 31,
2021 2020 Difference
Revenues:
Rental income $ 121,125 $ 126,094 $ (4,969) (1)
Interest income from mortgage loans 32,811
31,396 1,415 (2) Interest and other income 1,386 1,847 (461) (3) Total revenues 155,322 159,337 (4,015) Expenses: Interest expense 27,375 29,705 2,330 (4)
Depreciation and amortization 38,296 39,071 775 Impairment loss from real estate investments - 3,977 (5) 3,977 Provision (recovery) for credit losses 1,021
(3) (1,024) (6) Transaction costs 4,433 299 (4,134) (7) Property tax expense 15,392 15,065 (327)
General and administrative expenses 21,460
19,710 (1,750) (8) Total expenses 107,977 107,824 (153) Other operating income:
Gain on sale of real estate, net 7,462 (9) 44,117 (10) (36,655) Operating income 54,807 95,630 (40,823) Gain from property insurance proceeds - 373 (11) (373) Loss on unconsolidated joint ventures - (758) (12) 758 Income from unconsolidated joint ventures 1,417 432 985 (13) Net income 56,224 95,677 (39,453) Income allocated to non-controlling interests (363) (384) 21 Net income attributable to LTC Properties, Inc. 55,861 95,293 (39,432) Income allocated to participating securities (458) (422) (36)
Net income available to common stockholders
Decreased primarily due to defaults of lease obligations from Senior
Lifestyle and
repayment, a
decrease in property tax revenue, reduced rent from sold properties and 50%
(1) reduction of 2021 rent escalations partially offset by a
straight-line rent receivable and lease incentive balances related to three
operators during 2020, increased rent from re-leasing 18 properties
previously leased to Senior Lifestyle, completed development projects and
contractual rent increases.
Increased due to mortgage loan originations and capital improvement funding
(2) offset by scheduled principal paydowns and 50% reduction of 2021 interest
escalations.
(3) Decreased primarily due to the payoff of a mezzanine loan offset by
additional notes receivable funding.
Decreased due to scheduled principal payments on our senior unsecured notes
and lower interest rates under our unsecured revolving line of credit
(4) partially offset by higher interest rates on
fourth quarter of 2021 and higher outstanding balances under our unsecured
revolving line of credit.
(5) Represents impairment losses related to a 48-unit ALF in
61-unit ALF in
(6) Increased primarily due to mortgage originations and capital improvement
funding offset by scheduled principal paydowns.
(7) Increased due to
Increased primarily due to higher incentive compensation expense, an increase
(8) in non-cash restricted stock and performance-based stock vesting expense and
additional employees.
Represents the net gain on sale of
(9) of the prior years’ sale holdbacks partially offset by the net loss on sale
of
related to a closed property in
(10) Represents net gain on sale of 21 SNFs and additional gain due to quarterly
reassessment of prior years’ sale holdbacks.
(11) Represents gain on insurance proceeds related to a 114-bed SNF in
during the first quarter of 2020.
(12) Relates to the sale of properties comprising a joint venture in which we had
a preferred equity investment with Senior Lifestyle.
(13) Increased due to preferred equity investments in two unconsolidated joint
ventures.
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Year ended December 31, 2020 compared to year ended December 31, 2019 (in
thousands):
Years ended December 31,
2020 2019 Difference
Revenues:
Rental income $ 126,094 $ 152,755 $ (26,661) (1)
Interest income from mortgage loans 31,396
29,991 1,405 (2) Interest and other income 1,847 2,558 (711) (3) Total revenues 159,337 185,304 (25,967) Expenses: Interest expense 29,705 30,582 877 (4)
Depreciation and amortization 39,071 39,216 145 Impairment on real estate for sale 3,977 - (3,977) (5) (Recovery) provision for credit losses (3)
166 169 Transaction costs 299 365 66 Property tax expense 15,065 16,755 1,690 (6)
General and administrative expenses 19,710
18,453 (1,257) (7) Total expenses 107,824 105,537 (2,287) Other operating income:
Gain on sale of real estate, net 44,117 (8) 2,106 (9) 42,011 Operating income 95,630 81,873 13,757 Gain from property insurance proceeds 373 (10) 2,111 (10) (1,738) Loss on unconsolidated joint ventures (758) (11) - (758)
Impairment loss from investments in unconsolidated
joint ventures
- (5,500) (12) 5,500 Income from unconsolidated joint ventures 432 2,388 (1,956) (13) Net income 95,677 80,872 14,805 Income allocated to non-controlling interests (384) (346) (38) Net income attributable to LTC Properties, Inc. 95,293 80,526 14,767 Income allocated to participating securities (422) (391) (31)
Net income available to common stockholders
Decreased primarily due to the
receivable and lease incentive balances during 2020, reduction in rent
(1) related to the sale of the
from Senior Lifestyle, and abated and deferred rent, partially offset by
increased rent from contractual escalations, acquisitions and completed
development projects.
(2) Increased primarily due to additional mortgage and capital improvement
funding offset by scheduled principal paydowns.
(3) Decreased primarily due to the partial paydown of a mezzanine loan.
Decreased primarily due to lower outstanding balance and interest rates on
(4) our line of credit in 2020, partially offset by increased interest from sale
of
(5) Represents impairment losses related to a 48-unit ALF in
61-unit ALF in
(6) Decreased primarily due to the timing of Senior Lifestyle property tax escrow
receipts and the payment of related taxes.
(7) Increased primarily due to higher incentive compensation expense in 2020 and
a legal fee reimbursement from Senior Care in 2019.
Represents gain on sale of 21 SNFs within the
(8) and additional gain due to quarterly reassessment of prior years’ sale
holdbacks.
Represents the net gain resulting from sale of three SNFs and an ALF during
(9) 2019. Additionally, represents an additional
receipt of funds held in escrow related to a portfolio of six ALFs sold in
2018.
(10) Relates to insurance proceeds related to properties sold.
(11) Relates to the sale of properties comprising a joint venture in which we had
a preferred equity investment with Senior Lifestyle. Also, see (12) below.
(12) Relates to a preferred equity investment in a joint venture comprised of
four ALFs which we wrote-down to its estimated fair value.
(13) Decreased due to (12) above and payoff of a mezzanine loan in 2019 offset by
two preferred equity investments in 2020.
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Funds From Operations
Funds from Operations ("FFO") attributable to common stockholders, basic FFO
attributable to common stockholders per share and diluted FFO attributable to
common stockholders per share are supplemental measures of a REIT's financial
performance that are not defined by GAAP. Real estate values historically rise
and fall with market conditions, but cost accounting for real estate assets in
accordance with GAAP assumes that the value of real estate assets diminishes
predictably over time. We believe that by excluding the effect of historical
cost depreciation, which may be of limited relevance in evaluating current
performance, FFO facilitates comparisons of operating performance between
periods.
We use FFO as a supplemental performance measurement of our cash flow generated
by operations. FFO does not represent cash generated from operating activities
in accordance with GAAP, and is not necessarily indicative of cash available to
fund cash needs and should not be considered an alternative to net income
available to common stockholders.
We calculate and report FFO in accordance with the definition and interpretive
guidelines issued by NAREIT. FFO, as defined by NAREIT, means net income
available to common stockholders (computed in accordance with GAAP) excluding
gains or losses on the sale of real estate and impairment write-downs of
depreciable real estate plus real estate depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures. Our
calculation of FFO may not be comparable to FFO reported by other REITs that do
not define the term in accordance with the current NAREIT definition or that
have a different interpretation of the current NAREIT definition from us;
therefore, caution should be exercised when comparing our FFO to that of other
REITs.
The following table reconciles net income available to common stockholders to
FFO attributable to common stockholders (unaudited, amounts in thousands, except
per share amounts):
For the year ended December 31,
2021 2020 2019
GAAP net income available to common stockholders
$ 80,135 Add: Depreciation and amortization 38,296 39,071
39,216
Add: Impairment loss from investments - 3,977
5,500
Add: Loss on unconsolidated joint ventures - 758 - Less: Gain on sale of real estate, net (7,462) (44,117)
(2,106)
NAREIT FFO attributable to common stockholders
$ 122,745 NAREIT FFO attributable to common stockholders per share: Basic$ 2.20 $ 2.41 $ 3.10 Diluted$ 2.20 $ 2.41 $ 3.08 (1) Weighted average shares used to calculate NAREIT FFO per share: Basic 39,156 39,179 39,571 Diluted 39,156 39,264 (2) 39,921 (3)
(1) Includes the effect of participating securities.
(2) Diluted weighted average shares used to calculate FFO per share includes the
effect of performance-based stock units.
Diluted weighted average shares used to calculate FFO per share includes the
(3) effect of stock option equivalents, participating securities and
performance-based stock units.
Critical Accounting Policies and Estimates
Our accounting policies are more fully described under Item 8. FINANCIAL
STATEMENTS-Footnote 2. Summary of Significant Accounting Policies. As discussed
in Footnote 2, the preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions about future events that
affect the amounts reported in our consolidated financial statements and
accompanying notes. Actual results could differ from those estimates. Listed
below are those policies and estimates that we believe are critical and require
the use of significant judgement in their application.
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Impairment of Long-Lived Assets
Assets that are classified as held-for-use are periodically evaluated for impairment when events or changes in circumstances indicate that the asset may be impaired or the carrying amount of the asset may not be recoverable through future undiscounted cash flows. The expected future undiscounted cash flows reflect external market factors and are probability weighted to reflect multiple possible cash flow scenarios. Additionally, the estimated future undiscounted cash flows are calculated utilizing the lowest level of identifiable cash flows that are largely independent of the cash flows of other assets and liabilities. In order to review our real estate assets for recoverability, we make assumptions regarding external market conditions (including capitalization rates and growth rates), forecasted cash flows and sales prices, whether the management modifies the lease with the existing operator versus identifying a replacement operator and our intent with respect to holding or disposing of the asset. If our analysis indicates that the carrying value of the real estate assets is not recoverable on an undiscounted cash flow basis, we recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the real estate asset. Our ability to accurately predict operating results and projected cash flows impacts the timing and recognition of impairments. While we believe our assumptions are reasonable, changes in these assumptions may have a material impact on our consolidated financial statements.
Collectibility of operator obligations
We assess the collectibility of substantially all our lease payments through maturity. If collectibility is not probable, all or a portion of our straight-line rent receivables and other lease receivables may be written-off. In order to assess our lease payments for collectibility, we make assumptions that include evaluating lessee's payment history, the financial strength of the lessee, future market conditions and contractual rents, and timing of expected payments. Our ability to accurately predict collectibility of substantially all of our lease payments impacts the timing of straight-line rent and other lease receivable write-offs, if any. While we believe our assumptions are reasonable, changes in these assumptions may have a material impact on our consolidated financial statements.
Liquidity and Capital Resources
Sources and Uses of Cash
As of
equivalents,
credit and the potential ability to access the capital markets through the
issuance of
Agreements. Furthermore, we have the ability to access the capital markets
through the issuance of debt and/or equity securities under an automatic shelf
registration statement.
We believe that our current cash balance, cash flow from operations available
for distribution or reinvestment, our borrowing capacity and our potential
ability to access the capital markets are sufficient to provide for payment of
our current operating costs, meet debt obligations and pay common dividends at
least sufficient to maintain our REIT status and repay borrowings at, or prior
to, their maturity. The timing, source and amount of cash flows used by
financing and investing activities are sensitive to the capital markets'
environment, especially to changes in interest rates. In addition, COVID-19 has
adversely affected and is expected to continue to adversely affect our
operators' business, results of operations, cash flows and financial condition
which could, in turn, adversely affect our financial position.
The operating results of the properties will be impacted by various factors over
which the operators/owners may have no control. Those factors include, without
limitation, the health of the economy, changes in supply of or demand for
competing seniors housing and health care properties, ability to hire and
maintain qualified staff, ability to control rising operating costs, the
potential for significant reforms in the health care industry, and the impact of
COVID-19. In addition, our future growth in net income and cash flow may be
adversely impacted by various proposals for changes in the governmental
regulations and financing of the health care industry, and the impact of
COVID-19 or other pandemic level viruses. We cannot presently predict what
impact these potential events may have, if any. We believe that adequate
provision has been made for the possibility of loans proving uncollectible but
we will continually evaluate the financial status of the operations of the
seniors housing and health care properties. In addition, we will monitor our
borrowers and the underlying collateral for mortgage loans and will make future
revisions to the provision, if considered necessary.
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Depending on the duration, spread and the severity of the COVID-19 outbreak, our
borrowing capacity, compliance with financial covenants, ability to access the
capital markets, and the payment of dividends may be negatively impacted. We
continuously evaluate the availability of cost-effective capital and believe we
have sufficient liquidity for our current dividend, corporate expenses and
additional capital investments in 2022.
Our investments, principally our investments in owned properties and mortgage
loans, are subject to the possibility of loss of their carrying values as a
result of changes in market prices, interest rates and inflationary
expectations. The effects on interest rates may affect our costs of financing
our operations and the fair market value of our financial assets. Generally, our
leases have agreed upon annual increases and our loans have predetermined
increases in interest rates. Inasmuch as we may initially fund some of our
investments with variable interest rate debt, we would be at risk of net
interest margin deterioration if medium and long-term rates were to increase.
Our primary sources of cash include rent and interest receipts, borrowings under
our unsecured credit facility, public and private issuance of debt and equity
securities, proceeds from investment dispositions and principal payments on
loans receivable. Our primary uses of cash include dividend distributions, debt
service payments (including principal and interest), real property investments
(including acquisitions, capital expenditures and construction advances), loan
advances and general and administrative expenses. These sources and uses of cash
are reflected in our Consolidated Statements of Cash Flows as summarized below
(in thousands):
Year Ended December 31, Change
Cash provided by (used in): 2021 2020 $
Operating activities $ 91,184 $ 116,101 $ (24,917)
Investing activities (69,786) 43,931 (113,717)
Financing activities (24,009) (156,504) 132,495
(Decrease) increase in cash, cash equivalents
and restricted cash (2,611) 3,528 (6,139)
Cash, cash equivalents and restricted cash,
beginning of period 7,772 4,244 3,528
Cash, cash equivalents and restricted cash, end
of period $ 5,161 $ 7,772 $ (2,611)
Debt Obligations
Unsecured Credit Facility. We had an unsecured credit agreement (the "Original
Credit Agreement") that provided for a revolving aggregate commitment of the
lenders of up to $600.0 million with the opportunity to increase the commitment
size of the credit agreement up to a total of $1.0 billion . The Original Credit
Agreement's maturity was on June 27, 2022 and provided for a one-year extension
option at our discretion, subject to customary conditions.
In advance of expiration of the Original Credit Agreement, during the fourth
quarter of 2021, we entered into the Third Amended and Restated credit agreement
(the "Credit Agreement") to replace the Original Credit Agreement. The Credit
Agreement decreased the aggregate commitment of the lenders under the Original
Credit Agreement to $500.0 million comprised of a $400.0 million revolving
credit facility (the "Revolving Line of Credit") and two $50.0 million term
loans (the "Term Loans"). The Credit Agreement permits us to request increases
to the Revolving Line of Credit and Term Loans commitments up to a total of $1.0
billion , extends the maturity of the Revolving Line of Credit to November 19,
2025 and provides for a one-year extension option at our discretion, subject to
customary conditions. The Term Loans mature on November 19, 2025 and November
19, 2026 . Based on our leverage at December 31, 2021 , the Revolving Line of
Credit provides for interest annually at LIBOR plus 115 points and a facility
fee of 20 basis point and the Term Loans provide for interest annually at LIBOR
plus 135 points.
Interest Rate Swap Agreement. In connection with entering into the Term Loans as
discussed above, we entered into two receive variable/pay fixed interest rate
swap agreements ("Interest Rate Swaps") with maturities of November 19, 2025 and
November 19, 2026 , respectively, that will effectively lock-in the forecasted
interest payments on the Term Loan borrowings over the four and five year terms
of the loans. The Interest Rate Swaps are considered cash flow hedges and are
recorded on our Consolidated Balance Sheets at fair value, with changes in the
fair value of these instruments recognized in Accumulated other comprehensive
income (loss) on our Consolidated Balance Sheets. During the three months ended
December 31, 2021 , we recorded a $0.2 million decrease in fair value of Interest
Rate Swaps.
Senior Unsecured Notes. We have senior unsecured notes held by institutional
investors with interest rates ranging from 3.85% to 5.03%. The senior unsecured
notes mature between 2024 and 2032.
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The debt obligations by component as ofDecember 31, 2021 are as follows (dollar amounts in thousands): Applicable Available Interest Outstanding for Debt Obligations Rate (1) Balance Borrowing Bank borrowings (2) 1.36%$ 110,900 $ 289,100 Term loans, net of debt issue costs 2.63% 99,363 - Senior unsecured notes, net of debt issue costs (3) 4.35% 512,456 - Total 3.65%$ 722,719 $ 289,100
(1) Represents weighted average of interest rate as of
Subsequent to
(2) of Credit. Accordingly, we have
for borrowing under our Revolving Line of Credit.
Subsequent to
(3) notes. Accordingly, we have
under our senior unsecured notes.
Our debt borrowings and repayments during the year ended
as follows (in thousands):
Debt Obligations Borrowings Repayments
Revolving line of credit $ 204,400 (1) $ (183,400)
Term loans 100,000 -
Senior unsecured notes - (47,160) (2)
Total $ 304,400 $ (230,560)
Subsequent to
(1) of Credit. Accordingly, we have
for borrowing under our Revolving Line of Credit.
Subsequent to
(2) notes. Accordingly, we have
under our senior unsecured notes.
Equity
Non-controlling Interests. We may, enter into partnerships to develop and/or own real estate. Given that our limited members do not have substantive kick-out rights, liquidation rights, or participation rights, we have concluded that the partnerships are VIEs. Since we exercise power over and receive benefits from the VIEs, we are considered the primary beneficiary. Accordingly, we consolidate the VIEs and record the non-controlling interests at cost.
At
equity on our balance sheet totaled
a market value of
declared and paid
Common Stock. We have an equity distribution agreement with sales agents to issue and sell, from time to time, up to$200.0 million in aggregate offering price of our common shares. The equity distribution agreement provides for sales of common shares to be made by means of ordinary brokers' transactions, which may include block trades, or transactions that are deemed to be "at the market" offerings. AtDecember 31, 2021 , we had$200.0 million available under our equity distribution agreement. During 2021, we acquired 87,249 shares of common stock held by employeeswho tendered owned shares to satisfy tax withholding obligations. Subsequent toDecember 31, 2021 , we declared a monthly cash dividend of$0.19 per share on our common stock for the months of January, February andMarch 2022 , payable onJanuary 31 ,February 28 andMarch 31, 2022 , respectively, to stockholders of record onJanuary 21 ,February 18 , andMarch 23, 2022 , respectively. Stock Based Compensation Plans. During 2021, we adopted, and our shareholders approved the 2021 Equity Participation Plan (the "2021 Plan") which replaces the 2015 Equity Participation Plan (the "2015 Plan"). Under the 2021 Plan, 1,900,000 shares of common stock have been authorized and reserved for awards, less one share for every one share that was subject to an award granted under the 2015 Plan afterDecember 31, 2020 and prior to adoption. In addition, any shares that are not issued under outstanding awards under the 2015 Plan because the shares were forfeited 47 Table of Contents or cancelled afterDecember 31, 2020 will be added to and again be available for awards under the 2021 Plan. Under the 2021 Plan, the shares were authorized and reserved for awards to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2021 Plan and the 2015 Plan are set by our compensation committee at its discretion.
Restricted Stock and Performance-based Stock Units. During 2021, we granted
182,240 shares of restricted common stock and performance-based stock units
under the 2021 Plan as follows:
No. of Price per Shares Share Vesting Period 95,293$ 42.27 ratably over 3 years 71,892$ 42.27 TSR targets (1) 12,055$ 39.40 May 26, 2022 3,000$ 43.14 April 1, 2022 182,240
(1) Vesting is based on achieving certain total shareholder return (“TSR”)
targets in 4 years with acceleration opportunity in 3 years.
AtDecember 31, 2021 , the total number of restricted common stock shares that are scheduled to vest, and performance-based stock units that could possibly vest and remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows (dollar amounts in thousands): Number Remaining of Compensation Vesting Date Awards Expense 2022 164,232 (1) 5,447 2023 128,282 (2) 2,855 2024 103,663 (3) 303 Total 396,177$ 8,605
Includes 60,836 performance-based stock units. The performance-based stock
(1) units are valued utilizing a lattice-binomial option pricing model based on
over the applicable vesting period as compensation expense.
(2) Includes 66,027 performance-based stock units. See (1) above for valuation
methodology.
(3) Includes 71,892 performance-based stock units. See (1) above for valuation
methodology.
Stock Options. We did not issue any stock options during the year endedDecember 31, 2021 . AtDecember 31, 2021 , we have 15,000 stock options outstanding and exercisable. Material Cash Requirements We monitor our contractual obligations and commitments detailed above to ensure funds are available to meet obligations when due. The following table represents our long-term contractual obligations (scheduled principal payments and amounts due at maturity) as ofDecember 31, 2021 , excluding the effects of interest and debt issue costs (in thousands): Total 2022 2023 2024 2025 2026 Thereafter Revolving line of credit$ 110,900 (1) $ - (1) $ - $ -
$ 110,900 $ - $ - Term loans 100,000 - - - 50,000 50,000 - Senior unsecured notes 512,980 (2) 48,160 (2) 49,160 49,160 49,500 51,500 265,500$ 723,880 $ 48,160 $ 49,160 $ 49,160 $ 210,400 $ 101,500 $ 265,500
Subsequent to
(1) revolving line of credit. Accordingly, we have
$267,100 available for borrowing under our unsecured revolving line of credit.
Subsequent to
(2) notes, accordingly we have
under our senior unsecured notes.
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The following table represents our projected interest expense, excluding
capitalized interest, amortization of debt issue costs and bank fees, as of
Total 2022 2023 2024 2025 2026 Thereafter
Revolving line of credit $ 9,072 $ 2,344 $ 2,344 $ 2,351 $ 2,033 $ - $ -
Term loans 11,712 2,664 2,664 2,671 2,510 1,203 -
Senior unsecured notes 111,829 21,281 19,003 16,747 14,536 12,473 27,789
$ 132,613 $ 26,289 $ 24,011 $ 21,769 $ 19,079 $ 13,676 $ 27,789
Also, see Item 8. FINANCIAL STATEMENTS- Note 11. Commitments and Contingencies
for additional information regarding our contractual commitments.
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