BMO Capital analyst Juan C. Sanabria maintained a Sell rating on LTC Properties (LTC – Research Report) yesterday and set a price target of $42.00.
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Juan C. Sanabria has given his Sell rating due to a combination of factors affecting LTC Properties. The company’s recent financial performance showed a mixed outcome, with adjusted funds available for distribution (FAD) slightly exceeding expectations, while adjusted funds from operations (FFO) fell short. This discrepancy highlights some underlying financial challenges.
Additionally, LTC Properties faced operational hurdles, such as disappointing assisted living (AL) occupancy rates, which underperformed compared to industry peers. The decision by a skilled nursing facility (SNF) operator not to renew its lease further adds to the uncertainty. Moreover, the lack of new investments in the recent quarters and the delayed entry into the SHOP segment suggest potential growth limitations. These factors collectively contribute to a cautious outlook, justifying the Sell rating.