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LTC Properties (LTC)
NYSE:LTC

LTC Properties (LTC) AI Stock Analysis

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LT

LTC Properties

(NYSE:LTC)

Rating:76Outperform
Price Target:
$40.00
▲(14.65%Upside)
LTC Properties shows strong financial performance and strategic growth plans. While technical indicators suggest stability without significant momentum, the company's attractive valuation and high dividend yield make it appealing for income-focused investors. The earnings call further underscores growth potential despite existing challenges.
Positive Factors
Acquisition Pipeline
LTC saw its acquisition pipeline ramp to $300M, indicating strong growth potential.
Leverage and Financial Strategy
Leverage has declined to one of the lowest points on LTC’s record, suggesting improved financial health.
Valuation and Shareholder Returns
Valuation is attractive with a price target based on a combination of leased and SHOP peers, while considering LTC’s low leverage profile.
Negative Factors
Investment Activity
LTC didn't complete any new investments in recent quarters, possibly limiting growth opportunities.
Lease Transitions
Some transitions of existing leases to SHOP could be initially dilutive.
Occupancy Rates
AL occupancy declined, underperforming peers and typical seasonality.

LTC Properties (LTC) vs. SPDR S&P 500 ETF (SPY)

LTC Properties Business Overview & Revenue Model

Company DescriptionLTC Properties, Inc. is a real estate investment trust (REIT) that primarily invests in senior housing and healthcare properties. The company is engaged in the acquisition, development, and management of properties across the United States, focusing on skilled nursing facilities, assisted living facilities, independent living facilities, and memory care properties. LTC Properties aims to provide a stable source of income and capital appreciation for its investors through its diversified portfolio of healthcare-related real estate assets.
How the Company Makes MoneyLTC Properties makes money primarily through the collection of rental income from its portfolio of healthcare-related properties. As a REIT, the company leases its properties to operators and tenants in the senior housing and healthcare sectors, generating steady rental revenue. Additionally, LTC Properties may engage in financing activities, such as providing mortgage loans or mezzanine loans to operators, earning interest income. The company's revenue streams are bolstered by strategic partnerships with experienced operators in the healthcare space, which help ensure high occupancy rates and stable lease agreements. Furthermore, LTC Properties may realize gains through the strategic sale of properties or other real estate investments, contributing to its overall earnings.

LTC Properties Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 1.45%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated a strong focus on growth through the RIDEA platform and solid financial performance. However, challenges remain, particularly with the skilled-nursing centers and the occupancy dips in the Anthem portfolio. Overall, the company appears to be well-positioned for future growth with a cautious approach to existing challenges.
Q1-2025 Updates
Positive Updates
RIDEA Platform Expansion
LTC Properties expanded its RIDEA platform with a SHOP portfolio totaling $176 million in gross book value through the conversion of 13 properties from triple net leases. The investment pipeline now stands at $300 million, with RIDEA opportunities representing approximately 50%.
Financial Performance and Liquidity
Core FFO grew to $0.65 from $0.64, and core FAD increased to $0.7 from $0.67. Total liquidity is approximately $681 million, with a debt to annualized adjusted EBITDA ratio of 4.3x and an improved annualized adjusted fixed charge coverage ratio of 5.0x.
Prestige Contractual Cash Interest
Received full contractual cash interest of $5 million through $3.8 million in cash interest paid and $1.2 million from security. Prestige received $2.3 million in retroactive Medicaid payments, with security deposit now at $6 million.
Operator Pipeline and Growth Strategy
Actively pursuing underwriting opportunities to add stabilized assets, focusing on a blend of RIDEA strategy with traditional and structured finance transactions for long-term value creation.
Negative Updates
Challenges with Skilled-Nursing Centers
The operator decided not to renew their lease on seven skilled-nursing centers for strategic reasons. The sale process is ongoing, with plans to replace $8.3 million of 2025 GAAP rent.
Anthem Portfolio Occupancy
The Anthem portfolio transitioned into SHOP currently has 81% occupancy. There were higher-than-normal discharges in Q4, affecting performance.
Company Guidance
During the first quarter of 2025 earnings call for LTC Properties, the company outlined a series of strategic moves that include converting 13 properties from triple net leases to a SHOP portfolio valued at $176 million. This transition, completed with Anthem Memory Care and soon to include New Perspective, is part of their RIDEA strategy which has expanded their investment pipeline to $300 million, with approximately 50% representing RIDEA opportunities. The company appointed Dave Boitano as the new Chief Investment Officer, bringing substantial industry experience. Financially, LTC reported a slight increase in core FFO per share to $0.65 and a similar increase in core FAD per share to $0.70. Their liquidity stands at $681 million, with a debt to annualized adjusted EBITDA ratio of 4.3x and an improved fixed charge coverage ratio of 5.0x. They provided full-year guidance for core FFO per share between $2.65 and $2.69 and core FAD per share between $2.78 and $2.82. The company's SHOP portfolio is projected to generate NOI between $9.4 million and $10.3 million in 2025.

LTC Properties Financial Statement Overview

Summary
LTC Properties shows strong revenue growth and cost management with high gross profit margins. The debt-to-equity ratio has improved, but increasing total debt remains a concern. Cash flow generation is solid, supporting operations and investments effectively.
Income Statement
75
Positive
LTC Properties has demonstrated a consistent revenue growth with a notable increase in EBIT margin over the years. The gross profit margin is strong, consistently above 90%, indicating efficient management of cost of goods sold. However, the net profit margin shows a slight decline in TTM, which could be due to increased expenses or other non-operating factors.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved, reflecting better leverage management. The equity ratio suggests a solid capital structure, with stockholders' equity forming a significant part of total assets. However, there is a consistent increase in total debt, which poses a potential risk if not managed properly.
Cash Flow
80
Positive
LTC Properties has shown strong free cash flow generation, with a positive growth trajectory in recent periods. The operating cash flow to net income ratio is robust, indicating effective conversion of profits into cash. However, the decline in financing cash flow suggests increased repayments or reduced capital raising activities, which may impact future liquidity.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
208.04M209.85M197.24M175.15M155.32M159.34M
Gross Profit
197.84M196.92M182.83M159.67M139.93M144.27M
EBIT
106.64M92.44M89.96M99.08M80.57M95.63M
EBITDA
142.90M168.93M175.89M136.58M93.10M134.70M
Net Income Common Stockholders
87.49M91.04M89.73M100.02M27.07M65.91M
Balance SheetCash, Cash Equivalents and Short-Term Investments
940.01M935.26M20.29M10.38M5.16M7.77M
Total Assets
1.78B1.79B1.86B1.66B1.50B1.46B
Total Debt
582.33M684.60M891.32M767.85M722.72M649.38M
Net Debt
559.04M675.19M871.03M757.48M717.56M641.61M
Total Liabilities
726.21M733.14M938.83M805.80M759.70M683.68M
Stockholders Equity
961.90M960.63M881.28M828.37M736.71M767.40M
Cash FlowFree Cash Flow
131.48M125.17M104.40M96.59M84.89M115.75M
Operating Cash Flow
133.68M125.17M104.40M105.59M91.18M116.10M
Investing Cash Flow
81.10M90.68M-174.91M-119.95M-69.79M43.93M
Financing Cash Flow
-200.49M-226.72M80.42M19.58M-24.01M-156.50M

LTC Properties Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price34.89
Price Trends
50DMA
35.00
Negative
100DMA
34.56
Positive
200DMA
34.92
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.71
Neutral
STOCH
24.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTC, the sentiment is Neutral. The current price of 34.89 is below the 20-day moving average (MA) of 35.39, below the 50-day MA of 35.00, and below the 200-day MA of 34.92, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 24.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LTC.

LTC Properties Risk Analysis

LTC Properties disclosed 34 risk factors in its most recent earnings report. LTC Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
The health care industry is heavily regulated by the government and changes in federal, state, or local law could impose negative costs and restrictions on us and our operators. Q4, 2024
2.
The extent and pace of inflation could adversely impact our operators' net income and our results of operations. Q4, 2024

LTC Properties Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LTLTC
76
Outperform
$1.62B18.179.39%6.50%4.46%2.24%
OHOHI
72
Outperform
$10.72B23.2410.53%7.23%10.56%45.37%
66
Neutral
$1.37B39.002.46%5.92%-2.94%46.24%
DHDHC
62
Neutral
$762.35M-13.96%1.24%5.33%10.68%
61
Neutral
$2.81B10.770.40%8439.00%5.73%-20.81%
56
Neutral
$459.92M202.561.45%13.25%-1.66%-86.24%
MPMPW
44
Neutral
$2.69B-28.86%8.61%19.56%-12.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LTC
LTC Properties
34.89
2.68
8.32%
OHI
Omega Healthcare
37.41
7.05
23.22%
MPW
Medical Properties
4.47
-0.68
-13.20%
DHC
Diversified Healthcare Trust
3.22
0.34
11.81%
GMRE
Global Medical REIT
6.31
-2.05
-24.52%
SILA
Sila Realty Trust, Inc.
24.65
6.83
38.33%

LTC Properties Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
LTC Properties Increases Authorized Shares for Growth
Positive
Jun 3, 2025

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.

The most recent analyst rating on (LTC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on LTC Properties stock, see the LTC Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.