LTC Properties (LTC) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 6.7%
• Average Volume (3M): 369.59K
• Price to Earnings (P/E): 49.7
• Beta (1Y): 0.18
• Revenue Growth: 11.89%
• EPS Growth: -68.41%
• Country: US
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): N/A
• Shares Outstanding: 47,614,193
• 10 Day Avg. Volume: 445,971
• 30 Day Avg. Volume: 369,594
• PEG Ratio: -3.98
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 7.20
• P/FCF Ratio: 12.07
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 11.58
• Enterprise Value/Gross Profit: 13.88
• Enterprise Value/Ebitda: 24.55
• 1Y Price Target: $36.75
• Price Target Upside: 1.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $38.00 ▲(4.68% Upside)

The score is driven primarily by mixed financial performance: improving revenue and solid cash generation are offset by sharp net-margin compression, higher leverage, and weaker debt cash-flow coverage. Technicals are moderately supportive but look somewhat stretched near-term, while valuation is held back by a high P/E despite a strong dividend yield. Earnings-call commentary was a modest positive due to raised guidance and SHOP momentum.

Positive Factors

Strategic Acquisitions

The acquisitions enhance LTC's portfolio, increasing its SHOP segment to 24% of its real estate value, supporting long-term growth.

Financial Flexibility

The increased credit commitment enhances LTC's financial flexibility, allowing for strategic investments and stability in operations.

Revenue Growth

Consistent revenue growth reflects effective business strategies and increasing demand in the senior housing sector, supporting long-term stability.

Negative Factors

Cash Flow Challenges

Low operating cash flow relative to net income suggests potential liquidity issues, which could impact the company's ability to fund operations and growth.

Debt Levels

High debt levels can strain financial resources and limit flexibility, potentially affecting long-term financial health if not managed properly.

Noncash Write-offs

Significant noncash write-offs indicate financial adjustments that could impact reported earnings and reflect underlying operational challenges.

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 leasing its properties to operators of senior living and healthcare facilities. The company earns rental income from long-term leases, which are typically structured to provide predictable cash flows. Additionally, LTC may engage in mortgage financing for its properties, earning interest income from loans. The company also benefits from partnerships with experienced operators in the healthcare sector, ensuring high occupancy rates and effective management of its facilities. Factors contributing to its earnings include the increasing demand for senior housing due to an aging population, strategic acquisitions of properties, and the stability of cash flows from its long-term lease agreements.

LTC Properties Financial Statement Overview

Summary

Revenue growth has re-accelerated (~6% TTM) and operating-level profitability remains strong, but net margin has fallen sharply versus 2022–2024 and leverage has increased (debt-to-equity ~0.99). Cash flow is a relative strength (solid OCF/FCF with ~1.0x FCF-to-net-income), though the lower operating cash flow cushion versus debt (~0.10x) reduces flexibility.

Income Statement

Revenue has re-accelerated, up ~6% in TTM (Trailing-Twelve-Months) after modest growth in 2024 and stronger gains in 2022–2023. Profitability remains strong at the operating line (TTM gross margin ~89%, EBIT margin ~39%), but bottom-line performance has weakened materially: TTM net margin (~15%) is far below the very high levels seen in 2022–2024 (~43–57%), pointing to higher non-operating costs and/or one-time items. Overall, the top-line trend is improving, but earnings quality and consistency look less stable recently.

Balance Sheet

Leverage is meaningful and has moved higher recently: debt-to-equity is ~0.99 in TTM (Trailing-Twelve-Months) versus ~0.71 in 2024 (and around ~1.01 in 2023). Equity has stayed relatively steady while debt has increased, which reduces balance-sheet flexibility. Returns to shareholders have also cooled sharply, with return on equity dropping to ~3.5% in TTM (Trailing-Twelve-Months) from ~9–12% in 2022–2024, consistent with the weaker net income trend.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow are solid in TTM (Trailing-Twelve-Months) (~$131M) and have grown modestly versus 2024 (free cash flow growth ~3.6%). Free cash flow is closely aligned with net income in TTM (Trailing-Twelve-Months) (about 1.0x), suggesting reported earnings are largely supported by cash. A key watch item is debt coverage from operating cash flow, which has fallen to ~0.10x in TTM (Trailing-Twelve-Months) versus healthier levels in most prior annual periods, implying less near-term cash-flow cushion relative to total debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.14M	209.85M	197.24M	175.15M	155.32M	159.34M
Gross Profit	192.76M	196.92M	183.97M	159.67M	139.93M	144.27M
EBITDA	108.98M	171.58M	175.89M	169.52M	121.89M	164.45M
Net Income	33.86M	91.04M	89.73M	100.02M	55.86M	95.29M
Balance Sheet
Total Assets	2.04B	1.79B	1.86B	1.66B	1.50B	1.46B
Cash, Cash Equivalents and Short-Term Investments	17.93M	9.41M	20.29M	10.38M	5.16M	7.77M
Total Debt	947.17M	684.60M	891.32M	767.85M	722.72M	649.38M
Total Liabilities	999.17M	733.14M	938.83M	805.80M	759.70M	683.68M
Stockholders Equity	957.85M	960.63M	881.28M	828.37M	736.71M	767.40M
Cash Flow
Free Cash Flow	131.33M	125.17M	104.40M	96.59M	91.18M	115.75M
Operating Cash Flow	131.33M	125.17M	104.40M	105.59M	91.18M	116.10M
Investing Cash Flow	-266.80M	90.68M	-174.91M	-119.95M	-69.79M	43.93M
Financing Cash Flow	118.36M	-226.72M	80.42M	19.58M	-24.01M	-156.50M

LTC Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 36.3 is above the 20-day moving average (MA) of 36.16, above the 50-day MA of 35.30, and above the 200-day MA of 34.61, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.09 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
UHT	69 Neutral	$571.59M	31.14	10.55%	7.51%	0.68%	-1.34%
SILA	67 Neutral	$1.35B	34.51	2.77%	6.98%	3.74%	77.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CHCT	64 Neutral	$513.62M	-46.10	-2.32%	12.08%	3.40%	-240.85%
LTC	62 Neutral	$1.75B	49.71	3.49%	6.70%	11.89%	-68.41%
GMRE	55 Neutral	$522.25M	-144.79	0.49%	10.01%	2.73%	-131.16%
DHC	49 Neutral	$1.46B	-4.10	-18.84%	0.80%	4.10%	8.96%

LTC Properties Corporate Events

LTC Properties Amends Credit Agreement, Boosts Commitment

On December 12, 2025, LTC Properties, Inc. amended its Credit Agreement with several banks, increasing its aggregate commitment from $600 million to $800 million. This amendment includes new term loans maturing between 2028 and 2032, with interest rates fixed through swap agreements, potentially enhancing LTC’s financial flexibility and stability.

The most recent analyst rating on (LTC) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on LTC Properties stock, see the LTC Stock Forecast page.