LTC Properties Reports 2025 Second Quarter Results

LTC Properties, Inc., a real estate investment trust (REIT) that primarily invests in seniors housing and healthcare properties, has released its financial results for the second quarter ended June 30, 2025. The company has also raised its 2025 guidance to include $400 million of completed and anticipated near-term investments.

Financial Highlights

For the second quarter of 2025, LTC Properties reported total revenues of $60.2 million, a 20% increase from $50.1 million in the same period last year. However, net income available to common stockholders decreased to $14.9 million from $19.2 million in the second quarter of 2024. Diluted earnings per common share were $0.32, down from $0.44 in the previous year.

Other key financial metrics include:

• NAREIT funds from operations (FFO) attributable to common stockholders were $23.4 million, down from $28.2 million in the prior year.
• Core FFO, excluding non-recurring items, increased to $31.4 million from $29.3 million.
• Funds available for distribution (FAD) were $25.6 million, compared to $29.5 million in the previous year.
• Core FAD, excluding non-recurring items, rose to $32.6 million from $28.7 million.

Business and Operational Highlights

The company converted 13 properties with a total of 832 units under Anthem’s and New Perspective’s triple-net leases into its seniors housing operating portfolio (SHOP). This conversion contributed $2.5 million of net operating income during the second quarter of 2025, which is approximately $780,000 more than under the triple-net leases for the same period last year.

LTC also originated a $42.3 million mortgage loan secured by a 250-unit independent living, assisted living, and memory care community in Florida, with an initial funding of $38.4 million and a fixed yield of 8.5%.

Strategic Initiatives and Corporate Developments

Significant corporate activities include:

• Borrowing $19.7 million under the company’s unsecured revolving line of credit.
• Repaying $5.5 million in scheduled principal paydowns on senior unsecured notes.
• Selling 149,500 shares of common stock, generating $5.3 million of net proceeds under an equity distribution agreement.
• Acquiring a 67-unit seniors housing community in California for $35.2 million.
• Entering into a new four-year unsecured credit agreement, increasing the aggregate commitment on the revolver from $425 million to $600 million.

Management's Perspective

Co-CEOs Pam Kessler and Clint Malin emphasized the company's focus on growth, stating, "With $400 million of investments now included in our guidance, our SHOP portfolio will more than double in size. Even with this level of increased investment activity, we are continuing to backfill our pipeline with additional accretive SHOP transactions as we transform our company from a small cap, triple-net REIT to a larger, more diversified seniors housing focused REIT."

Future Outlook

LTC Properties has raised its 2025 full-year guidance, with GAAP net income attributable to LTC now expected to be between $3.45 and $3.48 per share, up from the previous range of $3.38 to $3.42 per share. Diluted Core FFO is projected to be between $2.67 and $2.71 per share, and Diluted Core FAD is expected to be between $2.80 and $2.83 per share.

The company expects to close investments totaling approximately $320 million over the next 60 days, with $60 million representing an 8.25% five-year mortgage loan and the remaining $260 million representing SHOP investments at an anticipated average year-one yield of 7%.

SEC Filing: LTC PROPERTIES INC [ LTC ] - 8-K - Aug. 04, 2025