An unnamed tenant has decided not to renew its lease with real estate investment trust (REIT) LTC Properties (NYSE: LTC) for seven skilled nursing facilities that are currently part of LTC’s assets. LTC leaders said they are continuing with the sale process for the properties, and remain committed to replacing at least $8.3 million in 2025 gap rent.

One property is currently under contract, and the remaining six are expected to be under contract in Q2, said Gibson Satterwhite, executive vice president of asset management for LTC. All sales are expected to close in Q4 this year.

Another update for LTC’s skilled nursing properties involves retroactive Medicaid payments for Prestige Healthcare; LTC Properties expects to receive full contractual interest for the operator through May 2026, REIT leaders said during the company’s first quarter earnings call on Tuesday. 

Subsequent to Q1 end on March 31, Prestige received $2.3 million in retroactive Medicaid payments, which were funded into LTC’s security pocket, bringing the full payment with current cash pay to $6 million for Prestige, said Satterwhite.

LTC created a loan modification for Prestige in 2023, which included a current pay interest component and mechanism to increase security from Prestige’s retroactive Medicaid payments, Satterwhite said.

“This structure was designed to provide more than a two-year runway for Prestige to recover from occupancy challenges experienced during the pandemic,” noted Satterwhite. “With the level of security we now hold and increased occupancy and performance, our investment is on much stronger footing and is continuing to improve.”

Unlike Omega Healthcare Investors (NYSE: OHI), LTC reported no negative updates for another skilled nursing tenant, Genesis Healthcare, which makes up 5.1% of rents. Genesis didn’t pay full contractual rent to Omega in March, the REIT said during its Q1 earnings call.

LTC also touched on the latest executive changes, adding David Boitano as chief investment officer in late April. LTC Co-CEO Clint Malin said the addition adds executive bench strength and demonstrates a depth of talent in the company, along with the promotions of other executives mentioned during Q4 2024’s call.

LTC’s RIDEA strategy, which will be continued by Boitano, has resulted in an increase in the investment pipeline and giving leaders a clear pathway to growth by more fully aligning their interest with that of existing and new operators, creating performance-driven upside, said Malin.

“Dave adds even deeper expertise to our team, spending most of his career in seniors housing at Ventas,” added Malin. “As we expand our idea platform, Dave’s experience and substantial industry relationships will contribute to our future growth.”

Boitano is set to speak about LTC’s investment pipeline at the next earnings call, Malin said. The investment pipeline currently stands at $300 million, of which idea opportunities represent 50%.

“We’ve clearly laid the foundation for transformative expansion and with growth as our focus for 2025. We are moving into the future with momentum and confidence,” said Malin.

During the fourth quarter, LTC Properties posted funds from operations (FFO) of 65 cents, in line with analyst estimates. Funds after distribution (FAD) per share for Q1 was 70 cents, beating analyst estimates of 68 cents.

LTC’s total liquidity was $681.2 million, an increase compared to $680 million in 4Q, with $23.3 million in cash on hand and $276.2 million available on its line of credit, as well as the capacity to issue up to $381.7 million of common stock under LTC’s equity distribution agreements.

LTC shares closed Tuesday at $35.79, up $1.21, or 3.50%.