LTC Properties (LTC) Q4 2025 Earnings Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
LTC Properties (LTC) has outlined a significant strategic shift toward Skilled Nursing Operator Partnerships (SHOP) in its Q4 2025 earnings transcript. The company aims to have SHOP assets make up 45% of its portfolio and contribute 40% of its Net Operating Income (NOI) by the end of 2026, marking a substantial increase from their previous figures. This focus on SHOP has already shown strong returns, with converted properties achieving a 14% same-property NOI growth midpoint in 2026. The company also reported $260 million in closed or imminent SHOP acquisitions, nearly halfway toward its $600 million annual goal. These investments are projected to yield low to mid-teens unlevered Internal Rate of Return (IRR) and year-one yields over 7.5%. Additionally, LTC Properties has successfully reduced its exposure to loans and skilled nursing facilities, with projections for these assets to fall below 10% and 30% of the portfolio by December 2026, respectively.
The company's financial performance reflects this strategic pivot. Core Funds from Operations (FFO) per share increased by $0.05 to $0.70, while Core Funds Available for Distribution (FAD) per share grew by $0.07 to $0.73, representing an 8% and 11% year-over-year growth, respectively. For 2026, the company forecasts a core FFO per share range of $2.75 to $2.79 and a core FAD per share range of $2.82 to $2.86. These projections underscore the potential for continued financial growth as the company transitions its portfolio.
LTC Properties also emphasized its strong balance sheet, with expanded credit facilities totaling $8
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Originally published on The Motley Fool on 2/25/2026