Good morning and welcome to LTC Properties First Quarter Analyst and Investor Call. All participants will be in listen only mode. After today's presentation, there will be opportunity to ask questions. Please note that this event is being recorded. Now I'd like to turn the conference over to Ms.
Wendy Sosa, CEO. Please go ahead.
Thank you, operator, and welcome to everyone joining us today for LTC's 2021 Q1 conference call. With me on the call are Pam Kessler, Co President and Chief Financial Officer and Clint Malan, Co President and Chief Investment Officer. For the last year, I started our call by offering thanks and gratitude to our operators For all they have done to keep their patients, residents and staff safe. Today is no different. Now, however, for the first time in a long while, I am cautiously optimistic that some of the more daunting challenges presented by the pandemic And the many, many lives lost are mostly behind us and that we have entered the recovery stage.
With the high percentages of vaccinations administered to the senior population, skilled nursing centers and assisted living memory care communities should begin welcoming new patients and residents at increasing frequencies from the lower levels that we've seen over the last 12 months. We don't know with any certainty when census numbers will return to pre pandemic levels, Anecdotal evidence from some of our operating partners is encouraging. As in 2020, Some of our operators have needed rent deferrals and abatements. 1st quarter rent and mortgage interest Income collections were 86.5 percent excluding the 1st quarter reduced 2021 rent escalations We provided to eligible operators in the form of rent credits. The credits were provided to give eligible operators additional working capital The Q1 of 2021 and are expected to have an approximate $530,000 impact On our 2021 GAAP revenue and an approximate $1,300,000 impact On our 2021 FAD, approximately 292,000 and $1,200,000 respectively was recognized during the Q1.
We Expect to recognize a decrease of approximately $170,000 $133,000 in GAAP And FAD revenue respectively in the 2nd quarter and a much smaller amount in the Last 6 months of 2021. Currently, we don't anticipate providing additional across the board relief, but we'll continue to review relief requests, if any, on a case by case basis, keeping in mind the operator's ongoing operations, rent coverage and corporate financial health and liquidity. Pam will discuss the specifics of current rent deferrals and abatements a bit later. One additional way we've helped our operators through the pandemic is by providing attractive financing to our operators through Our Smart Design program. This program creates safer physical environments for residents, Family and staff by utilizing state of the art infection control protocols, including air filtration, bipolar ionization, UV sanitation devices, custom dividers and touchless equipment.
We are working in partnership with Avenue Development to assist our operators with turnkey and customizable retrofitting options. To date, Smart design is being implemented in 13 of our communities. Next, I'll talk briefly about senior lifestyle. We are making progress on transitioning this portfolio with several of the transactions expected to close in the 2nd 3rd quarters. As we disclosed in a recent 8 ks filing, Senior Lifestyle has not paid rent in 2021.
Cliff will provide details on this portfolio shortly. Regarding an update on senior care centers, I'll refer you to the same 8 ks, which was filed with the SEC on April 19. Although the M and A market has not changed much since we last spoke And we do not believe that LTC will engage in any large transactions in the immediate future. Deal flow has picked up meaningfully. Over the last month in particular, we've seen a healthy uptick in inbound inquiries regarding preferred equity and mezzanine financing.
We are performing due diligence on a host of these opportunities, which we believe have reduced risk profiles and strong returns, especially for development projects whose success is not dependent on immediate lease up or current census. With respect to more traditional acquisitions, however, We are seeing more and more potential investments where pricing does not accurately represent what we see as the current value of the underlying Properties. We have the ability to act quickly on investment opportunities as they arise and if they are accretive and provide value to LTC See and our shareholders. I believe that LTC remains well positioned in an industry that Despite the pandemic has strong long term fundamentals, which point to an increasing need for senior housing and care solutions. We are starting to see some stability in our operators.
However, it is too early to predict The timing of a full recovery. In light of the matters discussed above, together with the uncertainty regarding the Senior Care bankruptcy, We do not plan to provide guidance again until occupancy and census increases gain additional traction. It has been our Board's practice to support a dividend payout ratio of approximately 80% of FAD. As a result of the financial support we are providing some of our operators and the significant lease defaults of Senior lifestyle and senior care, our 2021 dividend payout ratio will likely exceed the 80% target. However, we see our 2022 FAD recovering as we are able to totally transition the senior lifestyle portfolio to more stable operators and the issues involving LTC and the senior care bankruptcy are resolved.
Before turning the call over to Pam, I'd like to recognize our newest Board member Cornelia Chang. Her addition brings to 50% The number of LTC directors who are women. Cornelia will be instrumental as we further develop our diversity and ESG initiatives. With that, please go ahead, Pam.
Thank you, Wendy. Total revenue declined $6,100,000 compared with last year's Q1. Impacting our results were the decreased rental revenue related to non payment of lease obligations by Senior Lifestyle, partially set by rent received from 11 properties from this portfolio that were transitioned. Results were further impacted by abated deferred rent granted in the quarter, a reduction in property tax revenue and a one time 50% reduction of 2021 rent and interest Escalation to provide eligible operators with additional working capital in recognition of increased costs due to COVID-nineteen. Additionally, we wrote off straight line rent receivable related to the transition of an operator's lease to cash basis accounting.
The decrease was partially offset by rent from acquisitions and completed development projects and higher rent payments from Anthem. Interest expense decreased by $738,000 due to lower interest rates under our line of credit in the 2021 Q1, partially offset by lower capitalized interest. During the 2021 Q1, we sold a closed assisted living community in Florida and recognized a loss of $861,000 Comparatively, during the Q1 of 2020, we sold 21 skilled nursing properties and recognized a total gain on sale $43,900,000 As a result of the items discussed, net income available to common shareholders for the Q1 of 2021 decreased by $49,700,000 primarily due to a gain on sale in the prior year period and the revenue declines already discussed. This was partially offset by lower interest expense. NAREIT FFO per fully diluted share decreased 0 point to $0.62 in the 2021 Q1 compared with $0.74 in the 20 21st quarter.
Excluding the straight line rent receivable write off, FFO per fully diluted share was $0.64 this quarter compared to $0.74 last year. During the Q1 of 2021, we received $1,600,000 related to the payoff of a mezzanine loan and 936 $6,000 related to the payoff of a note receivable. Additionally, we borrowed $17,000,000 under our unsecured revolving line of credit at 1.3%. Moving on to our investment activity. During the 2021 Q1, we invested the remaining $8,000,000 of our 13,000,000 3rd equity commitment to develop a 2 67 unit independent living and assisted living community in Vancouver, Washington.
The preferred equity investment earns an initial cash rate of 8% and a 12% IRR and is accounted for as an unconsolidated joint venture. We also funded $1,000,000 in capital improvement projects on properties we own and $158,000 under existing mortgage loans. We have a remaining commitment under a mortgage loan of $1,600,000 related to the expansion and renovation on one property. We also paid $7,000,000 in regularly scheduled principal payments under our senior unsecured notes and paid $22,400,000 in common dividends. Subsequent to the end of the Q1, we repaid $5,000,000 under our unsecured line of credit.
Including this repayment, we have $8,200,000 in cash, 400 $98,100,000 available under our line of credit, under which $101,900,000 is outstanding and $200,000,000 under our ATM program providing LTC with liquidity of 706,300,000 As a reminder, we have no significant long term debt maturities over the next 5 years. At the end of the 2021 Q1, Our credit metrics remain strong with net debt to annualized adjusted EBITDA for real estate of 5.1 times An annualized adjusted fixed charge coverage ratio of 4.6 times and a debt to enterprise value of 28.6 percent. Next, I'll touch on rent deferrals and abatements. As Wendy mentioned, we collected 86.5% of 1st quarter rent and mortgage interest income, Excluding the 50% reduction of the 2021 rent and interest escalations provided to eligible operators in the form of rent credits in the Q1, which reduced cash revenue by $1,200,000 and GAAP revenue by $292,000 Additionally, During the quarter, we provided $1,100,000 in rent deferrals net of repayments and $600,000 in rent abatements. As Wendy mentioned, Senior Lifestyle has not paid us rent thus far in 2021, but we did receive rent from the operators to whom we transitioned former Senior Lifestyle Communities to date.
In April 2021, rent deferrals net of repayments totaled 367,000 and rent abatements were 319,000. Additionally, we provided $133,000 in abated rent in April through a rent credit related to the rent escalation reduction already discussed. We also have agreed to provide rent deferrals and abatements of up to $800,000 for each of May June 2021. Now, I'd like to turn the call over to Clint.
Thanks, Pam. I'll start my discussion today with an update on our senior lifestyle portfolio. After transitioning 11 of the 23 properties in the Q1, we transitioned 1 additional property in April. This property, A 48 Unit Memory Care Community in Castle Rock, Colorado was transitioned to Graceful Senior Living, an operator new to LTC. The lease agreement is for a 5 year term with a purchase option exercisable after the 1st year of the lease.
Cash rent starting in year 2 of the lease will be $150,000 $300,000 in year 3, then escalating by 2% annually thereafter. There are now 11 buildings remaining in the portfolio. Of these, we expect to re tenant 3 by the end of the second quarter and 1 by the end of the third quarter. Three additional properties in the portfolio are under contract for sale with an expected closing in Q2. That leaves 4 remaining buildings.
1 was closed and is expected to be sold for an alternative use in the 3rd quarter And we are evaluating options for the remaining 3, which have a total book value of approximately 3,400,000 We will provide more details on all of these transactions after they have been completed. Next, I'll provide some color and our most recent development projects that are now operational. Weatherly Court operated by Field Senior Living in Oregon began accepting residents last September. At March 31, occupancy was 24%, up from 23% on February 15 10% on October 23. Ignite Medical Resort in Blue Springs located in Missouri began welcoming patients last October.
At March 31, occupancy was 64%, the same at February 15 and 23% on October 23. We currently have 3 properties under development. They are all on schedule and on budget. Moving now to Brookdale, whose master lease was scheduled for expiration on December 31, 2021. We have recently extended their term by 1 year, now maturing on December 31, 2022.
Brookdale's first renewal option will begin on January 1, 2022 and go through April 30, 2022. Rent terms under the amended master lease did not change. Last year, we extended a $4,000,000 capital commitment to Brookdale, which remains available through December 31, 2021 at a 7% yield. To date, we have funded $2,100,000 of this commitment. As a reminder, we only have one other lease that expires this year.
The SNF operated under this lease is under contract for sale with closing expected in the Q2. Next, I'll discuss our portfolio numbers With the caveat that given the pandemic and the challenging environment it has created, we don't believe coverage is a good indicator of future performance at this time and are focused mainly on occupancy trends, which I will discuss shortly. Q4 trailing 12 month EBITDARM and EBITDAR coverage As reported, using a 5% management fee was 1.13x and 0.93x respectively for our assisted living portfolio. Excluding stimulus funds received by our operators, coverage was 1x and 0.8x respectively. Excluding senior lifestyle from our assisted living portfolio, as reported EBITDARM and EBITDAR coverages would increase to 1.23x and 1.02x respectively.
Excluding both Senior lifestyle and stimulus funds, EBITDARM and EBITDAR coverages would be 1.12 times and 0.91 times respectively. For our skilled nursing portfolio, as reported EBITDARM and EBITDAR coverage was 1.9x and 1.45x respectively. Excluding stimulus funds, Coverage was 1.51x and 1.07x respectively. Now for some occupancy trends, which are as of March 31. For our private pay portfolio, occupancy is as of that date specifically.
And for our skilled portfolio, occupancy is the average for the month. Because our partners have given this data to us on a voluntary and expedited basis, The information we are providing includes approximately 70% of our total private pay units and approximately 91% of our skilled nursing beds. Private pay occupancy was 71% at December 31, 71% at January 31, 70% at February 28 72% at March 31. For skilled nursing, average monthly occupancy for the same time periods respectively was 67%, 67%, 65% 65%. With respect to 2021 growth, Our pipeline is more active than it's been in some time with opportunities predominantly in private pay, including a mix of existing operating partners and those new to LTC.
We are pleased to be seeing improved deal flow and we are making an increasing number of bids, but we can't provide specificity With respect to when these deals or what kind of deals will be closed as the market has not yet returned to normal and sales cycles have been elongated. As I said last quarter, when we are confident that we can complete deals at the right price for the right return, We will use our liquidity to provide strong regional operators with the growth capital they need. For now, we are focusing on smaller investments with what we believe to be a better risk reward profile, including mezzanine loans and preferred equity financing, several of which we have completed throughout the course of the pandemic. Partnering with regional operators is an important part of our ongoing strategy And we will continue to build relationships with those that have good operating track records and are experts in their local markets and regions. With that, I'll turn the call back to Wendy for her closing remarks.
Thank you, Pam and Clint. The disruption caused by the pandemic upended the world And more specifically, our industry and resulted in unprecedented, uncharted and unpredictable operating cycles. However, the pandemic also highlighted the many deep strengths within our industry and the people who provide care to those in need of those There are countless stories of heroism and bravery of which we should all be proud. As I said at the outset of today's call, we are moving forward with cautious optimism As a result of the ramp up of the vaccine rollout, government focus and attention on ending the pandemic And an industry that continues to work steadfastly to stabilize occupancy and restore consumer confidence. If we've learned one thing, it's that we are resilient.
It is that resiliency that will help us through recovery as we work to return to pre pandemic normalcy. You all know by now that I am very Proud of our operators and the LTC team. We have built something to last. And while we were tested over this last year and continue to be tested. Our culture of treating operators as partners and maintaining a solid balance sheet will serve us well as we continue to find accretive ways to enhance our portfolio, diversify our investments and serve as a growth partner of choice.
Now, we'll open the call for your questions.
And I'll begin the question and answer session. First question comes from Juan Benavariya of BMO. Please go ahead.
Hi, good morning out there. I was just hoping if we could start a little bit with the senior care, if you could give You are negotiating with relative to the kind of in place lease there just to get a sense of the quantum of potential decreases in the rental rate?
This is Clint. At this point, we're not able to give Information with the bankruptcy filing and assessing the timing of the transition that something is in process. And as we get more clarity on that, we'll provide updates next quarter, but we're not able to provide that information today.
Can you disclose if there is any letters of credit applied in the Q1 that may not be available to pay rents in the second quarter?
Yes, we discussed a letter of credit that we drew down on last quarter, but we did not give the amount. And we don't have an update right now.
Okay. For Switching topics to Brookdale. Can you provide any color as to why they only renewed for a year? And I mean is that Should we take that as a point of caution maybe that there wasn't a longer extension at this time?
I I don't want to speculate on Brookdale's intentions, but I led to believe similar to last time with the pandemic, they wanted sort of locking into a 10 year renewal. They want to evaluate the current environment and my assumption is the same holds true for this extension. I don't have any speculation or thoughts beyond that.
Okay. And just one last quick one for me. Any on the Florida disposition, any NOI that was lost on that sale and what were the proceeds?
The proceeds were $1,000,000 right? It was $1,000,000 It
was $2,500,000
I'm sorry, dollars $3,000,000 in the proceeds and it was in the Senior Care lease. So Proceeds lost, I mean they're not paying. So Alberta
was not in senior care. No, she's wrong on that. No, It was not in senior care. It was another operator and there was no NOI in 20 17 or 2019.
2020 in that quarter. 2020, yes. Okay.
Sorry. Among the 3 of us, we can get a right answer.
I thought you were referring to what we discussed that we're selling currently. I'm sorry. We are selling one right now out of senior care and that one Also has no revenue on it currently.
It's okay. Thank you. It's been a long year and it's Friday morning. So all good. Thank you.
Thank you. And the next question is from Jordan Chadler of KeyBanc. Please go ahead.
Thanks. Good morning, guys. So I wanted to follow-up on Senior Care. Did you say did you book a full quarter of rent or accrue a full quarter of rent in the first quarter For the senior care centers?
Yes. And they're on a cash basis. So, we drew down on the letter of credit and we booked a full quarter of rent.
Okay. So there's no Essentially same rent 4Q, 1Q from senior care centers? Yes. Got it. And then the other question on them, I know this is super early days, but From what I remember of the process, they have a short window to reject or affirm the lease.
Have we come to that point or do you have line of sight to on what day they'll have to accept or reject the lease?
Well, Jordan, it's typically a 60 day period to assume or reject and there can be extensions Granted by the court to that date based on certain circumstances, but one thing that differs from this filing as opposed to last time There is a subchapter 5 provision in Chapter 11 that really was born out of COVID to expedite Bankruptcy processes. So this is under a subchapter 5, which is new and There's a trustee appointed by the judge to effectively attempt to mediate a resolution between the parties. The 60 days Is the timeframe allotted to make that election to assume or reject?
Okay. And then just because this is a little bit unusual to us because it's atypical to see the same Borrower tenant file twice in 2 years, obviously extenuating circumstances in a sense, but We kind of get the history a little bit with you guys and them. Is it your understanding that this would Given that it's a Chapter 11, they want to try and protect and hold on to these properties assumedly again. And so the objective or the motive of the 11 is to get rid of some Other debt, that's not the lease Payments or the rent, right? There's like working capital debt loans or some other debt in place that they'd look to get out from under?
We're not aware. I mean, we're not aware of, or what their objective is in the filing or what they're trying to satisfy.
Others speculate on their motivation.
Well, we can point Jordan to the press release they had. Yes. I don't know, Jordan, if you saw their press release, I think it
was in May, right? Okay. Beginning of May.
Okay.
Beginning of May.
Okay.
I'm sorry, beginning of April. Okay.
Beginning of April.
Okay. Beginning of April.
Call. Thank you. I get it. I know it's I don't mean to put you in a It's unusual. So in terms of Hi, guys.
Hi, guys. I know you can't really speak to the remaining properties that have not yet transitioned. But just curious, Clint, is the what we're seeing with the property that you did transition, so year 1 rent of 150 going to 300 in year 3, 2% there. Is that a good indication As a proxy for what might happen with the other leases?
No. This is unique to this one asset in Colorado. So effectively 0 rent in year 1, it's really when we give them purchase option to make hopefully they can make improvements to occupancy and then be able to purchase the building in the 2nd year. So we think it's likely that a purchase option will be exercised In 12 months to 24 months to purchase the asset. That's really the intent behind this on this asset specifically.
It's a small asset, 48 units.
As I mentioned in my comments, it's a 48 unit memory care community.
Okay. And then lastly, just on CMS' news surrounding PDPM,
we were
a little bit surprised by that on the potential, So, you call it a clawback or adjustment. What are sort of the current expectations? What are you guys thinking might happen as you talk with the industry groups and some of your partners?
So I don't think it wasn't a surprise to us. There has always been the potential for recalibration. I think that's been talked about since the Commencement of PDPM. So that's always Just seems
seemed earlier was my thought. I thought it might be on the table for next year.
One would think that you get past the pandemic because there was an abnormal operating environment. So you would think that probably wouldn't have happened after We've had a period of time beyond the pandemic.
Yes, I wouldn't think they would use 2020 2021 as a data set of which to make a permanent decision. That would seem illogical, but they always put that out there that there's going to be a recalibration.
Right. So do you think is the current thinking that this could be implemented for fiscal year 2022 as an ultimate adjustment to the rate come sort of October 1 this year?
We're not sure when as far as the actual implementation, I mean it's still evolving as far as the recalibration, that's something we're going to follow, but
I mean I think you would have to get some good You know, recovery, return to normalcy data on which to make that decision and you know, I don't know. We were not speculating on when that's going to happen in either of our asset classes.
It's very fair. All right, guys. Thank you.
Thank you. Welcome. Thanks.
Thank you. And the next question is from Tayo Okusamana of Mizuho. Please go ahead.
Well, good shot.
Hi guys, how are you?
We're okay. Thank you.
Good. So I wanted to first talk about just kind of skilled nursing recovery, again, because you kind of talked about you're starting to see some signs in both asset class Nothing is stabilizing. But on the skilled nursing side, could you just talk a little bit about recovery with your tenants, kind of occupancy kind of rebound is kind of been seen since January and whether that kind of gives you confidence? I think again it's the industry data seems to suggest that skilled nursing is kind of bouncing back at like 100 bps But I'm not quite sure if you guys are 100 bps a month, but I'm not sure if your tenants are seeing that, whether they're kind of leading that, lagging that, If you could kind of talk about just what they're seeing?
Sure. I gave the average Monthly occupancies for the last 4 months and we have seen that it hasn't continued to decrease. So it's We hope it's trough.
It's troughed.
In discussions with operators in some markets they are seeing a little bit of an uptick, others have been flat. So it depends the market, but positive thing that we're looking at right now hopefully is that that decrease has troughed.
But it just seems like really different from what the data has kind
of said about the industry for the Q1, I guess. I'm struggling with why such a big difference.
In January, you're hearing that there was a return to normal discharge
Yes. Like the industry data seems
to suggest that things troughed in January and in kind of February, March, you kind of saw this 100 bps increase for a month and it just seems like your tenants didn't kind of see that or your portfolio didn't see that?
Most of our tenants were still in the middle of the surge in January February.
Okay. That's fine. The second question, if you could indulge me.
You've got the wrong state. We have
a lot of assets in Michigan. Michigan had a difficult time.
Yes. Yes. Yes.
Yes. Well, understood. Then the dividend, again, I appreciate the commentary you made around that, Wendy. I guess my question is, what kind of assumptions Are you making about recovery to make you feel confident that, 1, you don't have to do anything with it and then 2, You kind of return back to your target dividend payout by 2022.
Well, this is Pam. We're assuming that there is a recovery And that the challenges our industry are facing currently are temporary and That with the green shoots that we're seeing in the industry that we will return to normal occupancy and with normal margins.
And the assets with Senior Care and Senior Lifestyle will be transitioned, yes.
Contributing, yes.
All by 2022. So that's like 12 to 18 months out, do you think we will be at a point where we're kind of back to normal?
Right.
Okay. Appreciate it. Thank you.
Thank you. Next question is from Michael Carroll, RBC Capital Markets. Please go ahead.
Yes. Thank you. I want
to talk about the Brookdale, I guess, renewal. And I think, Wendy, you said last time is that they He executes renewal option. They could get the 50% credit on the rent escalators. I guess since this was shorter, Do they still qualify us for that credit or is that different now that since it's only like a shorter term renewal?
They got the credit. It was $133,000 So they got the credit. And Mike, they're As Clint said, they're using money to improve the buildings. Their census is good from what we Are getting reported. We thought it was a positive move by Brookdale, but Analysts take a different view sometimes.
No, I mean, I guess, renewing for next year during this environment is always good.
And then I guess Pam,
with regard to the Senior Care's letters of credit, I guess What's the uncertainty about how big that is? Is it just because it's in bankruptcy, there's a little bit more uncertainty of what LTC is able to get from that? Or I guess, Why is that less known?
You're correct. It's because they're in bankruptcy and we're not providing much Comment around that until it's resolved.
Okay. And then going back to Senior Lifestyles, What's the, I guess, the timeline of the 4 plan transitions? I know 3 is going to be in 2Q and 1 is in July. But I guess why is that taking a longer time? Is it just due to licensing transfer within those specific states is a problem?
Or is it an operator that's trying to Was waiting for something different or is it I guess, can you talk a little bit about that?
I would say licensure, Mike. Some states are longer than others. And then we do have the sale. And as I mentioned, sales cycles and process are a little bit elongated. So Those would be the items.
And the surge delayed some things. You couldn't get surveys and things done during that Time. Yes, earlier on that was
a little bit of a challenge just getting people into the buildings, but I mean that's we're beyond that at this point, but Nothing other than those items.
Okay. And then the 3 assets that were you guys are still analyzing on what to do, I guess, What's the status of that? Is that just you're getting offers on potential leases and or sales and you're analyzing those? Or is it the license transfer? I guess, what's the
Just analyzing the options and we've got a couple that we're working on right now. And hopefully next quarter we'll be able to provide more details Regarding the timing of that. But again, we provided the net book value just for relevance associated with those three assets.
Okay. What's the gross book value on those three assets?
I don't have the gross book in front of me. We can get that information to you, but the net book I think is more relevant.
Yes. Based
on who were built for, there's probably around $6,000,000 or $7,000,000 Yes.
It's probably double the net I'd
say, Mike, yes, it's probably around $6,000,000 to $7,000,000
because we built them in the '90s.
We built them
in the '90s. '90s.
Yes. Okay, great. Thank you.
Thank you. Thanks.
If I close, Cece?
I'd have done that.
And next we have a follow-up question from John Zanebrilla of BMO. Please go ahead.
Hi. Thanks for the extra time. Just a quick question on the rents received in the Q1. Was there any Letters of credit applied outside of senior care helped from a cash accounting perspective that That may not recur in the Q2?
No, there was not.
Okay. And then just following up
on, I think,
Comment at the end of
Tayo's question.
Did I hear correctly that you expect a full recovery For both seniors and skilled in 18 months? No,
We expect a full recovery, yes, but we do not know the timing of that. I mean, our crystal ball is not that sharp right now, Not that clear.
Okay. Got it. I followed up. Thank you.
Thank you. Next question is a follow-up from Okusanya Amazighu. Please go ahead.
Yes, guys. So apart from Kind of SLC and SCC, can we just talk a little bit about, again, some of these tenants you have in your portfolio that Again, kind of inherited portfolio, they were all transition portfolios, occupancy was already kind of weak Going into the pandemic and has gotten even weaker. So when I think about names like Anthem, names like Ignite, some of these Just talk a little bit about kind of what you're seeing with those tenants and how comfortable you feel with the idea that those tenants May not need additional help just because they're kind of starting from a lower occupancy as
they kind of start to get their portfolios together.
Well, I would say, Tyler, for Anthem, we have been working with them for We're now to increase the rent, which we have accomplished, which we've done over the past couple of years. And we provided them Some flexibility, but not increasing the rent too high. So they had some flexibility on their cash flow going into So we've not had to extend any incremental support to Anthem beyond that. For the majority of the other operators that we've helped and provided assistance, It's really been the same set of operators and it really is a result as Pam has mentioned previously on buildings that were in lease up. But at this point, it's the same population as we've talked about previously.
Okay, great. Thank you.
So that subset has not changed.
Okay. Thank you.
Thank you.
Thank you. We have no further questions at this time. Now I'd like to turn the call back over to Ms. Wendy Simpson for any closing remarks.
Again, thank you very much for the time you spent paying attention to our company and we look forward to
Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.