Real estate investment trust LTC Properties (NYSE: LTC) collected 92% of rent due in the second quarter of 2020, with most of the shortfall attributed to buildings operated by Senior Lifestyle Corp.

Westlake Village, California-based LTC wrote off $17.7 million in straight-line rent receivable and lease incentive balances related to an affiliate of Senior Lifestyle, the REIT stated Thursday in its Q2 2020 earnings release. That non-recurring write-off was due to a shortfall in May and June rent payments. LTC began accounting for Senior Lifestyle on a cash basis as of July 1. LTC also reported a $0.6 million loss on the liquidation of an unconsolidated joint venture with another Senior Lifestyle affiliate.

Primarily due to this situation with Senior Lifestyle, LTC reported Q2 net income available to shareholders of $1.8 million, compared with $20.4 million in the same period in 2019. The REIT reported funds from operations (FFO) of $12 million for Q2 2020, compared with $29.7 million for Q2 2019. Excluding the Senior Lifestyle write-off, LTC posted an FFO per diluted common share of $0.76 for the quarter, compared with $0.75 for the second quarter of 2019.

Not counting the Senior Lifestyle write-off, LTC collected 99% of Q2 2020 rent.

Out of 180 total properties in LTC’s portfolio, Senior Lifestyle operated 23 as of June 30. Its rent payments have been trending in the right direction. Its monthly contractual rent totals $1.52 million, and it paid $130,000 in May, $409,000 in June and $1.08 million in July, according to LTC’s financial supplement.

“We are evaluating our options for the portfolio which may include re-leasing some or all of the properties and selling some of the properties,” LTC stated in its supplement.

Senior Lifestyle was the eighth-largest U.S. operator as of 2019, with nearly 200 properties. The company did not immediately respond to requests for comment from Senior Housing News.

LTC is the first publicly traded senior living owner to report earnings for the second quarter, which was the first full quarter in which Covid-19 beset the industry. Due to pandemic-related uncertainty, LTC also addressed its leases with Brentwood, Tennessee-based Brookdale Senior Living (NYSE: BKD), the nation’s largest provider. Brookdale operated 35 LTC buildings as of June 30.

Subsequent to June 30, LTC consolidated four Brookdale leases into one master lease and extended the term by one year, to Dec. 31, 2021. The rental terms for the consolidated lease are the same as under the four separate agreements. Brookdale has three renewal options under the new master lease, for four years, five years and 10 years.

Brookdale also recently addressed its leases with Chicago-based REIT Ventas (NYSE: VTR).