One-glance verdict
Within fair range
$40.16 our estimate vs market $42.88
Wall Street consensus: $45.00 (12.0% higher than our fair-value estimate)
7% above our estimate
Fundamentals snapshot
LTC Properties, Inc.
LTC · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$42.88
52-week range
$33.64 - $43.60
Market cap
$2.31B
Balance sheet
Stretched
3.53x Stretched
Net debt $739.06M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 32.3% last year.
- Reward Returns 11.8% on equity, ahead of 66% of its peers.
- Risk Forward P/E (27.2x) is higher than trailing (15.3x) - earnings are expected to drop.
- Risk Operating margin compressed from 55.3% to 32.7% over 3 years.
What this company does
LTC Properties, Inc.
LTC Properties is a real estate investment trust (a company that owns income-generating properties) that owns senior housing and nursing home buildings across the United States. The company makes money by leasing its nearly 190 properties to healthcare providers, often through rental agreements where the tenant is responsible for paying most building expenses like taxes and maintenance. This provides LTC with a predictable stream of income from the growing long-term need for senior care.
How the company got here
LTC Properties was founded in 1992 as a specialized real estate investment trust, or REIT (a company that owns and often operates income-producing real estate). From the beginning, it focused on providing money and properties for the long-term care industry, like seniors housing and nursing homes. Over the years, it built its business by leasing properties to the companies that run these facilities and by providing loans. The company's main goal has always been to generate steady cash flow to pay monthly dividends (a share of the company's profits) to its stockholders.
What it actually does
Think of LTC Properties as a landlord and bank for the senior care industry. It owns nearly 200 senior housing and skilled nursing properties across the United States. Instead of running these facilities itself, LTC rents them out to other companies, called operators, who manage the day-to-day care of residents. LTC also acts like a bank by providing different types of loans and financing to these same operators so they can run and grow their businesses.
Triple-Net Lease Properties
A large part of LTC's business involves a specific type of rental agreement called a triple-net lease. With this kind of lease, the tenant (the company operating the senior care facility) is responsible for paying not just the rent, but also the property taxes, insurance, and maintenance costs. This arrangement provides LTC with a very predictable and stable income stream, as many of the variable costs of owning a building are passed on to the tenant. This has traditionally been the core of LTC's business, providing steady, long-term rental income.
Seniors Housing Operating Portfolio (SHOP)
This is a newer and rapidly growing part of LTC's business. Instead of a simple triple-net lease, in the SHOP model, LTC has more direct participation in the financial performance of the properties. While it still partners with an operator to manage the facility, LTC's income is tied more closely to the actual revenue and expenses of the senior housing community. This means LTC can make more money when the properties do well, but it also takes on more risk if they struggle. This segment is focused on newer, private-pay senior housing communities.
Financing and Other Investments
Besides owning properties, LTC also provides money to healthcare operators in other ways. This includes making mortgage loans, where LTC lends money to an operator to buy a property and earns interest income from the loan payments. It also engages in other structured finance solutions, which are more complex financial arrangements like providing preferred equity (an investment that has priority for getting paid back) or joint ventures (partnering with another company on a specific project). These financing activities provide another stream of interest-based income for the company.
What management is betting on now
Management is making a big push to grow its Seniors Housing Operating Portfolio (SHOP). The company is actively buying more senior housing properties to operate under this model and selling off some of its older skilled nursing facilities. This strategy aims to create a higher-growth business by focusing on newer properties and having more direct exposure to the financial upside of well-run communities. They are betting that this shift will reduce their reliance on skilled nursing facilities, which are more dependent on government funding, and increase the overall quality and growth potential of their portfolio.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$27.70M
FY2024 Q4
$29.53M
FY2025 Q1
$28.25M
FY2025 Q2
$28.86M
FY2025 Q3
$34.26M
FY2025 Q4
$37.34M
FY2026 Q1
$28.10M
FY2026 Q2
$30.60M
Revenue
$98.86M
Net income
$29.64M
Diluted EPS
0.56
Operating cash flow
$34.38M
Free cash flow
$30.60M
Fetching…
Sources
Revenue
$95.41M
Net income
$23.59M
Diluted EPS
0.48
Operating cash flow
$30.76M
Free cash flow
$28.10M
Fetching…
Sources
Revenue
$84.29M
Net income
$102.19M
Diluted EPS
2.19
Operating cash flow
$37.94M
Free cash flow
$37.34M
Fetching…
Sources
Revenue
$69.29M
Net income
$-20.00M
Diluted EPS
-0.44
Operating cash flow
$38.44M
Free cash flow
$34.26M
Fetching…
Sources
Revenue
$60.24M
Net income
$15.09M
Diluted EPS
0.32
Operating cash flow
$30.03M
Free cash flow
$28.86M
Fetching…
Sources
Revenue
$49.03M
Net income
$20.68M
Diluted EPS
0.45
Operating cash flow
$29.57M
Free cash flow
$28.25M
Fetching…
Sources
Revenue
$52.58M
Net income
$18.08M
Diluted EPS
0.39
Operating cash flow
$33.29M
Free cash flow
$29.53M
Fetching…
Sources
Revenue
$55.78M
Net income
$29.37M
Diluted EPS
0.66
Operating cash flow
$33.97M
Free cash flow
$27.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $40.16 vs current price $42.88
Wall Street consensus is the average analyst price target: $45.00 (12.0% higher than our fair-value estimate).
Our most-likely fair value is $40.16 a share — about 6.3% away from today's price of $42.88, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $739.1M. Interest coverage 3.5x.
Net debt
$739.06M
Interest coverage
3.53x
LTC Properties, Inc.'s profit covers its interest bill about 3.5 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
LTC
BASELINE
LTC Properties, Inc.
Total debt $779.49M Interest coverage 3.53x This is the baseline the peer rows are being compared against.
Total debt $4.03B Interest coverage 3.46x -2% vs LTC Has roughly the same debt cushion as LTC.
Total debt $2.63B Interest coverage 2.35x -33% vs LTC Carries about 1.5x less debt cushion than LTC.
Total debt $1.28B Interest coverage 3.53x +0% vs LTC Has roughly the same debt cushion as LTC.
Total debt $1.21B Interest coverage 4.91x +39% vs LTC Carries about 1.4x more debt cushion than LTC.
Total debt $12.92B Interest coverage 1.40x -60% vs LTC Carries about 2.5x less debt cushion than LTC.
What you should know
The case for and against LTC
3 Rewards
3 Risks
Rewards
-
Revenue grew 32.3% last year.
-
Returns 11.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (27.2x) is higher than trailing (15.3x) - earnings are expected to drop.
-
Operating margin compressed from 55.3% to 32.7% over 3 years.
-
Net debt grew 9.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.31x
Forward P/E
27.23x
P/B
2.18x
P/S
6.80x
EV/EBITDA
23.56x
PEG ratio
5.74x
Profitability
How much profit each dollar creates
Gross margin
60.5%
Operating margin
32.7%
Net margin
39.8%
ROE
11.8%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.58x
Current ratio
20.83x
Quick ratio
19.46x
Total debt
$779.49M
Total cash
$40.44M
Growth
How the business has been compounding
Revenue TTM
$347.85M
Revenue 5Y CAGR
14.1%
EPS TTM
2.80
EPS 5Y CAGR
0.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$141.52M
Free CF TTM
$128.71M
FCF margin
37.0%
Dividend
Shareholder payout
Yield
5.4%
Payout ratio
81.4%
Last ex-div date
2026-09-22