Here and throughout this Annual Report on Form 10-K wherever we provide details of our properties’ bed/unit count, the number of beds/units applies to skilled nursing, assisted living, independent living, memory care and behavioral health care properties only. This number is based upon unit/bed counts shown on operating licenses provided to us by lessees/borrowers or units/beds as stipulated by lease/mortgage documents. These numbers often differ, usually not materially by property, from units/beds in operation at any point in time. The differences are caused by such things as operators converting a patient/resident room for alternative uses, such as offices or storage, or converting a multi-patient room/unit into a single patient room/unit. We monitor our properties on a routine basis through site visits and reviews of current licenses. In an instance where such change would cause a de-licensing of beds or in our opinion impact the value of the property, we may take action against the lessee/borrower to preserve the value of the property/collateral.
Owned Properties. The following table sets forth certain information regarding our owned properties as of December 31, 2023 (dollars amounts in thousands):
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| · · · · · · · Remaining · · · |
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| · · No. of · · No. of · · No. of · · No. of · · · · · Lease · · Gross · |
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| Location · · ALFs · · SNFs · · Others · · Beds/Units · · Encumbrances · · Term (1) · · Investments · |
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| Alabama | | — | | 1 | | — | | 174 | | | $— | | 28 | | | $9,910 | | |
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| Arizona | | — | | 3 | | — | | 613 | | | — | | 68 | | | 28,496 | | |
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| California | | 3 | | 1 | | — | | 402 | | | — | | 58 | | | 69,717 | | |
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| Colorado | | 13 | | — | | — | | 657 | | | — | | 46 | | | 105,420 | | |
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| Florida | | 1 | | 4 | | — | | 516 | | | — | | 41 | | | 40,545 | | |
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| Georgia | | 1 | | — | | — | | 70 | | | — | | 6 | | | 14,556 | | |
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| Illinois | | 5 | | — | | — | | 418 | | | — | | 65 | | | 88,896 | | |
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| Kansas | | 8 | | — | | — | | 431 | | | — | | 60 | | | 58,153 | | |
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| Kentucky | | — | | 2 | | — | | 286 | | | — | | 120 | | | 48,716 | | |
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| Michigan | | 2 | | — | | — | (2) | 156 | | | — | | 16 | | | 22,387 | | |
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| Missouri | | 1 | | 2 | | — | | 253 | | | — | | 78 | | | 52,952 | | |
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| Nevada | | — | | — | | 1 | | 118 | | | — | | 14 | | | 11,062 | | |
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| New Jersey | | 3 | | — | | — | | 166 | | | — | | 48 | | | 59,059 | | |
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| New Mexico | | — | | 5 | | — | | 608 | | | — | | 28 | | | 42,581 | | |
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| N. Carolina | | 5 | | — | | — | | 210 | | | — | | — | (3) | | 14,339 | | |
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| Ohio | | 8 | | 2 | | — | | 822 | | | — | | 92 | | | 142,669 | | |
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| Oklahoma | | 5 | | — | | — | | 184 | | | — | | 34 | | | 11,202 | | |
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| Oregon | | 2 | | 1 | | — | | 266 | | | — | | 65 | | | 38,279 | | |
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| S. Carolina | | 2 | | 2 | | — | | 387 | | | — | | 24 | | | 41,604 | | |
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| Tennessee | | — | | 2 | | — | | 141 | | | — | | 24 | | | 5,275 | | |
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| Texas | | 17 | | 20 | | — | | 3,238 | | | — | | 24 | | | 328,467 | | |
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| Virginia | | — | | 4 | | — | | 500 | | | — | | 25 | | | 30,209 | | |
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| Wisconsin | | 7 | | 1 | | — | | 690 | | | — | | 74 | | | 114,838 | | |
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| TOTAL | | 83 | | 50 | | 1 | | 11,306 | | | $— | | 51 | | | $1,379,332 | | |
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| (1) | Weighted average remaining months in lease term as of December 31, 2023. |
| (2) | Includes three parcels of land held-for-use. |
| (3) | Subsequent to December 31, 2023, we transferred these communities, previously operated by Brookdale Senior Living Communities, Inc. (“Brookdale”), to an operator new to LTC. The master lease is for six years at an initial annual rent of $3,300. |
The following chart represents the 10 states with the highest percentage of gross investment for our owned properties as of December 31, 2023:
The following table sets forth certain information regarding our lease expirations for our owned properties as of December 31, 2023*(dollars amounts in thousands):*
| · · · · · · · · · · · · · · · · |
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| · · · · · · Annualized · % of Annualized |
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| · · No. of · · No. of · · No. of · · No. of · · No. of · · Rental · · Rental Income |
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| Year · · SNFs · · ALFs · · Others · · Beds/Units · · Operators · · Income (1) · · Expiring |
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| 2023 | | — | | 22 | | — | | 948 | | 1 | (2) | | $13,362 | | 11.7% |
| 2024 | | 11 | | 11 | | — | | 1,995 | | 3 | | | 7,786 | | 6.8% |
| 2025 | | 6 | | 10 | | 1 | | 1,447 | | 5 | | | 8,836 | | 7.8% |
| 2026 | | 15 | | 5 | | — | | 2,073 | | 4 | | | 19,393 | | 17.0% |
| 2027 | | — | | 9 | | — | | 611 | | 3 | | | 11,340 | | 10.0% |
| 2028 | | 3 | | 1 | | — | | 404 | | 3 | | | 4,125 | | 3.6% |
| 2029 | | 5 | | 4 | | — | | 1,269 | | 5 | | | 9,428 | | 8.3% |
| 2030 | | 1 | | 1 | | — | | 168 | | 2 | | | 3,386 | | 3.0% |
| 2031 | | — | | 17 | | — | | 1,146 | | 3 | | | 15,430 | | 13.5% |
| 2032 | | 5 | | — | | — | | 429 | | 1 | | | 6,079 | | 5.3% |
| 2033 | | 4 | | 1 | | — | | 816 | | 2 | | | 14,861 | | 13.0% |
| TOTAL | | 50 | | 81 | (3) | 1 | | 11,306 | (3) | | | | $114,026 | | 100.0% |
| (1) | Represents annualized contractual Generally Accepted Accounting Principles (“GAAP”) rent for leased properties, excluding variable rental income from lessee reimbursement of our real estate taxes for investments as of December 31, 2023. |
| (2) | Represents a master lease with Brookdale covering 22 ALFs. Subsequent to December 31, 2023, 17 of these ALFs with a total of 738 units were re-leased to Brookdale under a new six-year master lease with an initial annual rent of $9,325. The new master lease commenced in January 2024. The remaining five ALFs were transitioned to an operator new to LTC. These ALFs are located in North Carolina with a total of 210 units. The new six-year master lease commenced in January 2024 at an initial annual rent of $3,300. |
| (3) | Excludes two closed ALFs located in Colorado and Texas. |
Financing Receivables. The following table sets forth certain information regarding our financing receivables as of December 31, 2023 (dollar amounts in thousands):
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| · · · Type · · Number · · Number · · Initial · · · Average · · · · · · · · · Annualized Interest |
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| · · · of · · of · · of · · Contractual · · · Months · · · Gross · · · LTC · · · Income from |
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| State · · · Properties · · Properties · · Beds/Units · · Cash Yield · · · to Maturity · · · Investments · · · Contributions · · · Financing Rec |
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| NC | | | ALF/MC | | 11 | | 523 | | 7.25% | | 109 | | $121,321 | | $117,490 | | $9,706 | |
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| FL | | | SNF | | 3 | | 299 | | 7.25% | | 104 | | | 76,691 | | | 61,661 | | | 5,615 |
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| | | | | | 14 | | 822 | | | | | | | $198,012 | | $179,151 | | $15,321 | |
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Mortgage Loans. The following table sets forth certain information regarding our mortgage loans as of December 31, 2023 (dollars amounts in thousands):
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| · · · · · · Average · Original · · · Current |
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| · · No. of · · No. of · · No. of · · No. of · · Interest · · Months to · · Face Amount · · Gross · · Annual Debt |
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| Location · · SNFs (1) · · ALFs (1) · · OTHs (1) · · Beds/ Units · · Rate · · Maturity · · of Mortgage Loans · · Investments · · Service (2) |
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| Florida | | — | | 3 | | — | | 204 | | 7.8%-8.8% | | 21 | | | $30,456 | | | $20,706 | | | $1,667 | |
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| Georgia | | — | | 1 | | — | | 203 | | 7.5% | | 9 | | | 51,111 | | | 51,111 | | | 3,886 | |
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| Illinois | | 1 | | — | | — | | 150 | | 8.8% | | 53 | | | 16,500 | | | 16,500 | | | 1,464 | |
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| Louisiana | | 1 | | — | | — | | 189 | | 7.5% | | 9 | | | 29,346 | | | 29,346 | | | 2,232 | |
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| Michigan | | 22 | | — | | — | | 2,702 | | 9.8%-10.8% | | 244 | | | 265,443 | | | 258,468 | | | 27,294 | |
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| Missouri | | — | | — | | — | | — | | 7.5% | | 3 | | | 1,999 | | | 1,999 | | | 152 | |
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| North Carolina (3) | | — | | 17 | | — | | 740 | | 7.25% | | 24 | | | 99,005 | | | 99,005 | | | 7,284 | |
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| South Carolina (3) | | — | | 1 | | — | | 45 | | 7.25% | | 23 | | | 4,945 | | | 4,945 | | | 369 | |
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| TOTAL | | 24 | | 22 | | — | | 4,233 | | | | 140 | | | $498,805 | | | $482,080 | | | $44,348 | |
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| (1) | Consists of fourteen mortgage loans in eight states with eight borrowers. |
| (2) | Includes principal and interest payments. |
| (3) | Represents a single mortgage loan secured by 13 ALFs. The mortgage loan was allocated by state for reporting purposes only. |
