LTC Properties (LTC) AI Stock Analysis

• Market Cap: $1.69B
• Dividend Yield: 6.23%
• Average Volume (3M): 368.50K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.27
• Revenue Growth: 8.18%
• EPS Growth: -16.83%
• Country: US
• Employees: 23
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.32
• Shares Outstanding: 46,065,292
• 10 Day Avg. Volume: 317,923
• 30 Day Avg. Volume: 368,500
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 10.90
• Enterprise Value/Gross Profit: 11.77
• Enterprise Value/Ebitda: 14.91
• 1Y Price Target: $39.00
• Price Target Upside: 6.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $41.00 ▲(11.99% Upside)

LTC Properties' overall stock score reflects strong financial performance and strategic growth initiatives, particularly in expanding its SHOP portfolio. The technical indicators are favorable, supporting a bullish outlook. While the valuation is reasonable, the high dividend yield adds appeal. The earnings call provided positive guidance, though some risks are present, such as tenant bankruptcy and cash flow challenges.

Positive Factors

External Growth

LTC is delivering on external growth ahead of expectations.

Portfolio Expansion

These transactions are expected to bring SHOP to 20% of total portfolio and boost long-term growth.

Negative Factors

Liquidity Concerns

No negative update was provided on Genesis (5.1% of rents) despite liquidity pressures.

LTC Properties Business Overview & Revenue Model

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.

How the Company Makes Money

LTC Properties generates revenue primarily through rental income from the properties it leases to operators of senior housing and healthcare facilities. The company typically enters into long-term net leases, which obligate the tenants to cover property expenses such as maintenance, taxes, and insurance. In addition to rental income, LTC may also generate revenue through mortgage financing, providing loans to operators for property acquisitions or improvements. The company's partnerships with experienced operators in the healthcare sector are crucial, as they ensure the facilities are well-managed and financially stable, thus contributing to consistent cash flow and growth in earnings.

LTC Properties Financial Statement Overview

Summary

LTC Properties demonstrates solid profitability and revenue growth, with strong margins across the board. The balance sheet shows improved leverage, though debt levels remain a concern. Cash flow metrics indicate some challenges, particularly in operating cash flow. Overall, the company is in a stable financial position but should focus on enhancing cash flow generation and managing debt levels to sustain growth.

Income Statement

LTC Properties shows strong profitability with a high gross profit margin of 92.6% and a net profit margin of 38.2% for TTM. The revenue growth rate of 4.9% in TTM indicates a positive trend, although it has slowed compared to previous years. EBIT and EBITDA margins remain robust, reflecting efficient operations. However, the decline in net income from the previous year suggests potential challenges in maintaining profit levels.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.62 in TTM, indicating better leverage management. Return on equity is moderate at 8.7%, showing decent profitability relative to shareholder equity. The equity ratio stands at 53.3%, suggesting a balanced capital structure. However, the overall debt level remains significant, posing a risk if revenue growth does not continue.

Cash Flow

LTC Properties experienced a decline in free cash flow growth by 4.4% in TTM, which is a concern. The operating cash flow to net income ratio is low at 0.21, indicating potential cash flow challenges. However, the free cash flow to net income ratio is strong at 0.99, suggesting that the company is generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.64M	209.85M	197.24M	175.15M	155.32M	159.34M
Gross Profit	201.52M	196.92M	183.97M	159.67M	139.93M	144.27M
EBITDA	159.05M	171.58M	175.89M	169.52M	121.89M	164.45M
Net Income	83.07M	91.04M	89.73M	100.02M	55.86M	95.29M
Balance Sheet
Total Assets	1.80B	1.79B	1.86B	1.66B	1.50B	1.46B
Cash, Cash Equivalents and Short-Term Investments	915.49M	935.26M	20.29M	10.38M	5.16M	7.77M
Total Debt	596.57M	684.60M	891.32M	767.85M	722.72M	649.38M
Total Liabilities	750.45M	733.14M	938.83M	805.80M	759.70M	683.68M
Stockholders Equity	957.51M	960.63M	881.28M	828.37M	736.71M	767.40M
Cash Flow
Free Cash Flow	125.67M	125.17M	104.40M	96.59M	84.89M	115.75M
Operating Cash Flow	126.73M	125.17M	104.40M	105.59M	91.18M	116.10M
Investing Cash Flow	64.99M	90.68M	-174.91M	-119.95M	-69.79M	43.93M
Financing Cash Flow	-190.29M	-226.72M	80.42M	19.58M	-24.01M	-156.50M

LTC Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTC, the sentiment is Positive. The current price of 36.61 is above the 20-day moving average (MA) of 36.09, above the 50-day MA of 35.29, and above the 200-day MA of 34.52, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 62.14 is Neutral, neither overbought nor oversold. The STOCH value of 67.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTC.

LTC Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OHI	76 Outperform	$12.73B	26.91	10.47%	6.18%	12.73%	23.51%
SILA	76 Outperform	$1.40B	35.89	2.71%	6.27%	0.43%	58.57%
LTC	75 Outperform	$1.69B	20.08	8.94%	6.23%	8.18%	-16.83%
GMRE	64 Neutral	$552.97M	112.93	1.94%	10.25%	0.90%	―
DHC	59 Neutral	$994.63M	―	-14.32%	0.97%	4.29%	18.89%
Sector *	53 Neutral	$1.22B	2.98	-6.08%	5.74%	-8.21%	-81.31%
MPW	49 Neutral	$2.77B	―	-25.97%	6.99%	27.66%	18.03%

LTC Properties Corporate Events

LTC Properties Amends Equity Distribution Agreement

On August 5, 2025, LTC Properties, Inc. amended its Equity Distribution Agreement to include additional agents and forward purchasers, enhancing its ability to offer and sell up to $400 million of common stock. Concurrently, the company terminated its agreement with BMO Capital Markets Corp., Bank of Montreal, and Wedbush Securities Inc., leaving approximately $376.4 million in unsold shares, while maintaining agreements with the remaining original parties.

Genesis Healthcare Files for Bankruptcy, Impacting LTC Properties

On July 10, 2025, LTC Properties announced that Genesis Healthcare, an operator leasing six skilled nursing centers from LTC, filed for Chapter 11 bankruptcy on July 9, 2025. Genesis’ leases, which include a total of 782 beds in New Mexico and Alabama, are under a master lease with LTC that matures in April 2026, with options for renewal. Genesis had previously exercised a 5-year extension option for the lease, extending it to 2031. The annualized revenue from Genesis accounts for a small portion of LTC’s total revenue, and Genesis has paid its rent through July 2025. LTC holds a $4.7 million security from Genesis in a letter of credit.

LTC Properties Increases Authorized Shares for Growth

On May 28, 2025, LTC Properties held its annual stockholders meeting virtually, where several key proposals were voted upon. Stockholders elected six directors to the board, approved executive compensation, ratified Ernst & Young LLP as the accounting firm for 2025, and agreed to amend the company’s charter to increase authorized shares from 60 million to 110 million, reflecting strategic growth plans.