Tayo Okusanya: And then again, generally, while your portfolio is in great shape and most of your . When you kind of think about the industry at large though, I mean, how are you feeling about skilled nursing side, specifically how you think things ultimately evolve for the industry? Is it the case of just kind of what went on with Omega with their top tenants? Is that your call of more near term before things get better? Do you kind of feel like things have inflected on the skilled nursing side? Just kind of curious your overall viewpoint of the industry at this point.
Clint Malin: Well, I think it depends on what portion of skilled nursing you’re referring to. Right now, census and long term care has been more challenged than it has been in shorter stays. And so I think that in skilled nursing, taking on higher acuity patients, especially now with the implementation of PDPM, that’s been beneficial to the industry through the pandemic, I think you see reaching up into higher acuity is where a lot of operators are going. So that’s an area and that’s reflective of the investments we made last year, both with Ignite Medical Resorts as well as Pruitt in Florida. Operators are focusing on that higher acuity model and being able to take on patients that are in hospitals or other higher acuity settings. We think that has traction. The long term care side has been more challenged with home care and assisted living Medicaid waiver programs.
Operator: Our next question is a follow-up question from Juan Sanabria with BMO.
Juan Sanabria: Just a couple of follow-up questions. Is there any back story to the Florida impairment we should be aware of, is that tenant paying rent, or what’s the story there?
Clint Malin: That was a building that was part of a transition portfolio that we did last year. And it’s a one-off building from the others in that portfolio. So really just identifying buyers for that asset and the impairment was a result of that. So nothing other than that.
Juan Sanabria: And then you mentioned $32 million of dispositions. Were those rent paying, or what was the rent that was booked in the fourth quarter as it relates to that $32 million dispo opportunity?
Wendy Simpson: Juan, it was very hard to hear. Would you mind repeating the question?
Juan Sanabria: The $32 million of dispositions you referenced, I think, in your prepared remarks. What kind of yield should we expect relative to what was booked in the fourth quarter
Wendy Simpson: Do you mean — we said there would be a $3 million GAAP decrease in rent due to the sales. Is that your question?
Juan Sanabria: I guess is that a full year ’23 number or fourth quarter annualized?
Wendy Simpson: That was a full ’23 number. So just pull that out of your model.
Juan Sanabria: And then just the last one, this one’s maybe a little harder. But on the occupancy front, you gave the numbers for January for both SNFs and seniors housing. Why haven’t those really improved over the last six plus months, what do you think the issue is?
Wendy Simpson: Well, like anything, you can’t paint a broad brush, and occupancy increases coming out of the pandemic have not been linear. There’s been pockets of short term, what we view as short term setbacks. And the reasons are varied across the board. You’ve got leadership changes at some communities, and we all know we’re undergoing staffing issues, and there’s seasonality. There’s always a seasonality that’s reflected. And so you see in senior housing, in particular, in the fourth quarter and beginning of the first quarter, occupancy dips as families are reluctant to make changes during the holidays. So typically coming out of the first quarter, your seasonality, it goes to the upside. So we’re hoping that, that will be the case again for these.
But I think as you look — we still have a 700 or 800 basis points needed for recovery, back to pre-pandemic occupancy levels. I think we should expect to see it to be — continue to be a bumpy road. I don’t think it’s going to be a straight shot upward. But with everything, we’re looking at our portfolio. And if it’s these short term reasons that we think are recoverable, we’ll continue to stay invested in those assets. And for those that we think the market has turned or for some reason that area, the demographics or the market is not supporting the product then we would look to exit those investments.
Clint Malin: And one other thing Juan that we’ve heard from some operators, again, it defers by market, by state. Lead generation has been really strong for the most part. In some markets, conversions have been a little bit — have been lagging. And so it’s really understanding in certain markets why there’s been a lag in conversions in sales in some markets, but the positive is lead generation seems to be strong. And that’s what I’ve heard in some other earnings calls for this quarter as well that lead generation across the board has been very strong. So just operators are going to focus on that conversion into closing.
Operator: Thank you for your question. There are no further questions waiting at this time .
Wendy Simpson: Thank you, everyone, for joining us. And we look forward to talking to you very shortly as the first quarter is close to closing. Have a great day. Bye-bye.
Operator: This concludes today’s LTC Properties Incorported Analyst and Investor Call. Thank you for your participation. You may now disconnect your lines.
