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1. Company Snapshot

1.a. Company Description

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending.LTC holds 181 investments in 27 states with 29 operating partners.The portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties.

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1.b. Last Insights on LTC

LTC Properties' recent performance was driven by strong Q2 results, with total revenues rising 20% year-over-year to $60,240,000. Net income available to common stockholders surged to $14,938,000. The company's quarterly funds from operations (FFO) beat estimates, coming in at $0.68 per share. A nationally diversified portfolio and growing development pipeline support long-term growth. With over 20 years of consistent dividends, LTC's reliability and demographic tailwinds make it an attractive investment. Its payout ratio, near 85%, is sustainable, backed by steady cash flows.

1.c. Company Highlights

2. LTC Properties' Q3 2025 Earnings: A Strong Step Forward

LTC Properties, Inc. reported a core FFO of $0.69 per share, beating analyst estimates of $0.65 per share. The company's core FAD also improved to $0.72, driven by an increase in SHOP NOI and a decrease in interest expense. Revenue growth is expected to accelerate in the coming year, with analysts estimating a 48.7% increase. The company's financial performance has been robust, with a clear strategy to drive long-term value for shareholders.

Publication Date: Nov -25

📋 Highlights
  • SHOP Pipeline Growth:: LTC expanded its investment pipeline fourfold YoY, closing 85% of its $460M target, with $290M+ in SHOP transactions.
  • Financial Performance:: Core FFO rose to $0.69 (+1.5%) and Core FAD to $0.72 (+5.9%), driven by SHOP NOI gains and lower interest expenses.
  • Operator Relationships:: Added 4 new SHOP operators, totaling 6 partnerships, while maintaining stable operations with minimal disruptions from transitions.
  • Future Funding & Yields:: $1B investment pipeline includes $110M under LOI, with 7%+ initial yields on SHOP acquisitions funded via loan payoffs and ATM equity.
  • Growth Outlook:: Targets 3%-plus inflation-linked growth, with mid-single-digit RevPOR expansion and double-digit IRRs from supply-demand imbalances.

SHOP Initiative Driving Growth

The SHOP initiative, launched in late 2024, has been a key driver of LTC's growth. The company has grown its investment pipeline fourfold since the beginning of the year and has closed about 85% of its projected $460 million investment pipeline. LTC expects SHOP to approach 25% of its investment portfolio by the end of the year, with an average age of less than 9 years. As Richard Anderson noted, the company is confident that its SHOP conversions, such as the one to Compass, will drive NOI to exceed contractual rent.

Valuation and Growth Prospects

LTC's valuation metrics indicate a strong growth profile. The company's P/E Ratio stands at 48.98, while its P/B Ratio is 1.73. The EV/EBITDA ratio is 22.54, suggesting that the company's enterprise value is supported by its earnings. With a dividend yield of 6.34%, LTC offers an attractive income stream. The company's growth prospects are promising, with expected RevPOR growth outpacing expense growth. LTC is targeting low double-digit IRRs, driven by supply-demand imbalance and preliminary conversations with operators.

Investment Pipeline and Funding

LTC's investment pipeline stands at roughly $1 billion, with nearly $110 million under LOI, expected to close in January 2026. The company is funding its investments through a combination of proceeds from loan payoffs, purchase option exercises, and equity issuance on its ATM program. Pamela Shelley-Kessler stated that they'll match fund and have been disciplined in executing ATM issuances, indicating a prudent approach to capital management.

Outlook and Conclusion

LTC Properties' Q3 2025 earnings demonstrate the company's ability to execute on its growth strategy. With a strong balance sheet, solid liquidity, and a conservative approach to leverage, LTC is well-positioned to drive long-term value for shareholders. The company's focus on SHOP investments and its disciplined approach to capital management are expected to drive growth in the coming year.

3. NewsRoom

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Lotus Creek Exploration Inc. Announces Inaugural Monthly Report to Shareholders and a New Corporate Presentation

Dec -01

Source: newsfilecorp.com

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Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600

Nov -26

Source: seekingalpha.com

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3 Best Monthly Paying Dividend Stocks in the S&P 500

Nov -25

Source: 247wallst.com

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LTC Properties: Undervalued Monthly Dividend REIT Poised For Recovery

Nov -23

Source: seekingalpha.com

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5 Passive Income Monthly Pay Dividend All-Stars Every Boomer Should Own

Nov -21

Source: 247wallst.com

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LTC Properties, Inc. $LTC Position Cut by Campbell & CO Investment Adviser LLC

Nov -18

Source: defenseworld.net

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LTC Properties, Inc. $LTC Shares Acquired by Envestnet Asset Management Inc.

Nov -16

Source: defenseworld.net

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Brokerages Set LTC Properties, Inc. (NYSE:LTC) Price Target at $38.80

Nov -16

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Real Estate Investment Trust

Expected Growth: 4.65%

LTC Properties, Inc.'s 4.65% growth is driven by increasing demand for senior housing and healthcare properties, strategic acquisitions, and a strong balance sheet. The REIT's diversified portfolio, with a focus on skilled nursing and assisted living facilities, has enabled it to capitalize on the growing need for healthcare services among the aging population.

7. Detailed Products

Senior Housing

LTC Properties, Inc. invests in and operates senior housing communities, providing a range of services including independent living, assisted living, and memory care.

Skilled Nursing Centers

The company invests in and operates skilled nursing centers, providing short-term rehabilitation and long-term care services.

Assisted Living Communities

LTC Properties, Inc. invests in and operates assisted living communities, providing supportive care and services for daily living.

Memory Care Communities

The company invests in and operates memory care communities, providing specialized care and services for individuals with Alzheimer's disease and other dementias.

Range of Care

LTC Properties, Inc. offers a range of care services, including home health care, hospice care, and rehabilitation services.

8. LTC Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

LTC Properties, Inc. operates in a niche market, providing senior housing and healthcare services, which reduces the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative senior housing options, LTC Properties, Inc.'s diversified portfolio and strong brand reputation mitigate this threat.

Bargaining Power Of Suppliers

LTC Properties, Inc. has a diversified supplier base, reducing dependence on individual suppliers, and the company's scale and reputation give it bargaining power in negotiating contracts.

Threat Of New Entrants

While there are barriers to entry in the senior housing market, including regulatory hurdles and high capital requirements, new entrants can still disrupt the market, particularly with innovative care models or technologies.

Intensity Of Rivalry

The senior housing market is highly competitive, with many established players and a growing demand for services, leading to intense rivalry among operators.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.28%
Debt Cost 5.41%
Equity Weight 49.72%
Equity Cost 8.22%
WACC 6.81%
Leverage 101.14%

11. Quality Control: LTC Properties, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
LTC Properties

A-Score: 6.7/10

Value: 4.0

Growth: 4.1

Quality: 7.3

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Chicago Atlantic

A-Score: 6.7/10

Value: 6.1

Growth: 9.1

Quality: 4.3

Yield: 10.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Universal Health Realty Trust

A-Score: 6.0/10

Value: 3.8

Growth: 3.6

Quality: 5.6

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Community Healthcare Trust

A-Score: 5.9/10

Value: 6.4

Growth: 2.8

Quality: 5.4

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Global Medical REIT

A-Score: 5.5/10

Value: 5.7

Growth: 5.0

Quality: 4.2

Yield: 9.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Diversified Healthcare Trust

A-Score: 4.4/10

Value: 7.9

Growth: 2.7

Quality: 2.7

Yield: 3.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.18$

Current Price

35.18$

Potential

-0.00%

Expected Cash-Flows