LTC Properties (LTC) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: 6.49%
• Average Volume (3M): 391.61K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.19
• Revenue Growth: 11.89%
• EPS Growth: -68.41%
• Country: US
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.44
• Shares Outstanding: 47,614,193
• 10 Day Avg. Volume: 340,072
• 30 Day Avg. Volume: 391,614
• 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: 1.62
• Enterprise Value/Revenue: 11.75
• Enterprise Value/Gross Profit: 14.09
• Enterprise Value/Ebitda: 24.93
• 1Y Price Target: $38.00
• Price Target Upside: 8.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $205.82M

• Rating: 70 Neutral
• Price Target: $39.00 ▲(11.08% Upside)

LTC Properties' overall stock score is driven by solid financial performance and a positive earnings call outlook, highlighting growth in the SHOP segment and strong liquidity. The high P/E ratio suggests potential overvaluation, but the attractive dividend yield provides a counterbalance. Technical indicators are mixed, with potential oversold conditions. The recent acquisition further supports growth prospects.

Positive Factors

SHOP Segment Growth

The growth in the SHOP segment indicates a strategic focus on high-demand areas, enhancing revenue potential and market positioning.

Strong Liquidity

Strong liquidity provides financial flexibility to pursue strategic investments and manage debt, supporting long-term stability.

Strategic Acquisitions

Acquisitions expand LTC's portfolio, enhancing growth prospects and reinforcing its position in the senior housing market.

Negative Factors

Noncash Write-offs

Significant write-offs indicate financial adjustments that could impact profitability and highlight operational challenges.

Operator Transition Challenges

Operator transitions can disrupt income streams, posing risks to revenue stability and requiring effective management.

Cash Flow Challenges

Cash flow challenges may limit investment capacity and affect the ability to sustain operations and growth initiatives.

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

LTC Properties demonstrates solid profitability with strong margins and revenue growth. The balance sheet shows improved leverage, but high debt levels remain a concern. Cash flow metrics indicate challenges, particularly in operating cash flow.

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	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	91.70M	125.17M	104.40M	96.59M	91.18M	115.75M
Operating Cash Flow	92.87M	125.17M	104.40M	105.59M	91.18M	116.10M
Investing Cash Flow	23.60M	90.68M	-174.91M	-119.95M	-69.79M	43.93M
Financing Cash Flow	-143.90M	-226.72M	80.42M	19.58M	-24.01M	-156.50M

LTC Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTC, the sentiment is Negative. The current price of 35.11 is below the 20-day moving average (MA) of 35.82, below the 50-day MA of 35.32, and above the 200-day MA of 34.58, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 6.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LTC.

LTC Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTC	70 Neutral	$1.67B	48.12	3.49%	6.49%	11.89%	-68.41%
UHT	69 Neutral	$562.16M	31.29	10.55%	7.14%	0.68%	-1.34%
SILA	68 Neutral	$1.23B	31.64	2.77%	7.26%	3.74%	77.82%
CHCT	66 Neutral	$421.38M	―	-2.32%	12.28%	3.40%	-240.85%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DHC	58 Neutral	$1.15B	―	-18.84%	0.82%	4.10%	8.96%
GMRE	55 Neutral	$477.98M	―	0.49%	11.01%	2.73%	-131.16%

LTC Properties Corporate Events

LTC Properties Completes Acquisition of Senior Housing

On September 29, 2025, LTC Properties, Inc. completed the acquisition of five seniors housing communities in Wisconsin, totaling 520 units, from local developers. The $195 million purchase was financed through a combination of the company’s line of credit, loan payoffs, and proceeds from sales of common stock under its ATM program.

LTC Properties Updates 2025 Financial Guidance

LTC Properties, Inc. has updated its 2025 full-year guidance for GAAP net income to be in the range of $2.57 to $2.59 per share, reflecting a non-cash write-off related to an amendment made to a mortgage loan with Prestige Healthcare in July 2025. Additionally, the company has adjusted its guidance for Diluted Core Funds From Operations and Diluted Core Funds Available for Distribution due to a new $58 million loan secured by senior housing communities in California. These changes indicate LTC’s strategic financial adjustments in response to market conditions and its ongoing investment activities.