LTC Reports 2026 First Quarter Results

Published: 2026-05-06 16:39:04 ET LTC

– Strategic Shift in Portfolio Mix and Successful SHOP Execution Driving Strong Future Growth –

Published on 05/06/2026 at 04:39 pm EDT

LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for the first quarter ended March 31, 2026.

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“Our capabilities, reputation and culture are resonating with sellers and operators, and these relationships are driving investment opportunities and record external growth,” said Clint Malin, LTC’s Co-CEO. “We have strong conviction that our SHOP strategy is the right one to create a higher growth profile company with better risk-adjusted returns to drive shareholder value.”

Seniors Housing Operating Portfolio (“SHOP”) Portfolio:

“What began last year through the combination of acquisitions and conversions of nearly $570 million of seniors housing communities, ramps up this year with an additional $600 million of SHOP acquisitions projected at the mid-point of guidance,” said Pam Kessler, LTC’s Co-CEO. “These SHOP acquisitions, combined with approximately $265 million of skilled nursing divestitures, will result in 40% of LTC’s annualized NOI coming from SHOP by year-end.”

First Quarter 2026 Financial Results

Three Months Ended

March 31,

(unaudited, amounts in thousands, except per share data)

2026

2025

(unaudited)

Total revenues

95,411

49,031

Net income available to common stockholders

23,437

20,517

Diluted earnings per common share

0.48

0.45

Nareit funds from operations attributable to common stockholders ("FFO") (1)

35,426

29,508

Nareit diluted FFO per common share (1)

0.72

0.65

FFO attributable to common stockholders, excluding non-recurring items ("Core FFO") (1)

33,735

29,913

Diluted Core FFO per share (1)

0.69

0.65

Funds available for distribution ("FAD") (1)

36,374

34,680

Diluted FAD per share (1)

0.74

0.76

FAD, excluding non-recurring items ("Core FAD") (1)

35,250

32,021

Diluted Core FAD per share (1)

0.72

0.70

(1)

Represents non-GAAP financial measures. A reconciliation of these measures is included in the tables at the end of this press release.

Supplemental Information

The Company has disclosed more detailed financial information in the tables below, its Supplemental Operating and Financial Data presentation for the 2026 first quarter, and its Form 10-Q, as filed with the Securities and Exchange Commission, which can be found online at https://ir.ltcreit.com.

First Quarter 2026 Transactions Update

Second Quarter 2026 Subsequent Transactions Update

Proforma Liquidity

Guidance

LTC is reaffirming its full year 2026 guidance as follows:

2026

Full Year

Diluted earnings per common share

$1.80 to $1.84

Diluted Core FFO per share

$2.75 to $2.79

Diluted Core FAD per share

$2.82 to $2.86

Information and a reconciliation of the Company’s guidance, funds from operations attributable to common stockholders, excluding non-recurring items, (“Core FFO”) and funds available for distribution, excluding non-recurring items, (“Core FAD”) can be found in the tables at the end of this press release.

Conference Call Information

LTC will conduct a conference call on Thursday, May 7, 2026 at 8:00 a.m. Pacific / 11:00 a.m. Eastern, to provide commentary on its performance and operating results for the quarter ended March 31, 2026.

Webcast

https://ir.ltcreit.com/

USA Toll-Free Number

(877) 407‑8634

International Number

(201) 689‑8502

Conference Call Replay

A replay of the call will be available three hours after the live call through May 21, 2026.

USA Toll-Free Number

(877) 660‑6853

International Number

(201) 612-7415

Access ID

13760036

About LTC

LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, principally investing through SHOP, triple-net leases, joint ventures, and structured finance solutions. The Company’s portfolio includes nearly 190 properties throughout the United States. Based on gross real estate investments, 66% of the Company’s assets are seniors housing communities with the remainder skilled nursing centers. Learn more at www.LTCreit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. You can identify some of the forward-looking statements by their use of forward-looking words, such as “believes,” “expects,” “may,” “will,” “could,” “would,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or the negative of those words or similar words. Examples of forward-looking statements include the Company’s 2026 full year guidance and statements regarding the Company’s anticipated SHOP acquisitions, growth, NOI, and strategy. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect the Company’s future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to, operational and legal risks and liabilities under the Company’s new SHOP segment; the Company’s dependence on the ability of its third-party independent operators to successfully manage and operate the Company’s SHOP communities; the Company’s dependence on its operators for revenue and cash flow; government regulation of the health care industry; changes in federal, state, or local laws limiting REIT investments in the health care sector; federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid; required regulatory approvals for operation of health care facilities; a failure to comply with applicable law or regulations for the operation of health care facilities; the adequacy of insurance coverage maintained by the Company’s operators; the Company’s reliance on a few major operators; the Company’s ability to find suitable replacement operators for its SHOP communities; the Company’s ability to renew leases or enter into favorable terms of renewals or new leases; the impact of inflation; operator financial or legal difficulties; the sufficiency of collateral securing mortgage loans; an impairment of the Company’s real estate investments; the relative illiquidity of the Company’s real estate investments; the Company’s ability to develop and complete construction projects; the Company’s ability to invest cash proceeds for health care properties; a failure to qualify as a REIT; the Company’s ability to grow if access to capital is limited; and a failure to maintain or increase the Company’s dividend. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion under “Risk Factors” and other information contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2025, the Company’s subsequent Quarterly Reports on Form 10‑Q, and the Company’s publicly available filings with the Securities and Exchange Commission. The Company does not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise. Although the Company’s management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share amounts)

Three Months Ended

March 31,

2026

2025

(unaudited)

Revenues:

Rental income

26,339

31,444

Resident fees and services (1)

49,585

—

Interest income from financing receivables (2)

8,255

7,002

Interest income from mortgage loans

10,229

9,179

Interest and other income

1,003

1,406

Total revenues

95,411

49,031

Expenses:

Interest expense

10,782

7,913

Depreciation and amortization

11,979

9,162

Seniors housing operating expenses (1)

36,889

—

(Recovery) provision for credit losses

(684

)

3,052

Transaction costs

688

441

Triple-net lease property tax expense

2,394

3,107

General and administrative expenses

8,582

6,971

Total expenses

70,630

30,646

Income before unconsolidated joint ventures, real estate dispositions and other items

24,781

18,385

(Loss) gain on sale of real estate, net

(10

)

171

Income from unconsolidated joint ventures

295

3,665

Income tax provision

(110

)

—

Net income

24,956

22,221

Income allocated to non-controlling interests

(1,363

)

(1,541

)

Net income attributable to LTC Properties, Inc.

23,593

20,680

Income allocated to participating securities

(156

)

(163

)

Net income available to common stockholders

23,437

20,517

Earnings per common share:

Basic

0.48

0.45

Diluted

0.48

0.45

Weighted average shares used to calculate earnings per

common share:

Basic

48,543

45,333

Diluted

48,969

45,683

Dividends declared and paid per common share

0.57

Represents the Company’s seniors housing operating portfolio (“SHOP”) operating income and expense.

Represents rental income from acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as Financing receivables on the Consolidated Balance Sheets and the rental income to be presented as Interest income from financing receivables on the Consolidated Statements of Income.

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share amounts)

March 31, 2026

December 31, 2025

Investments:

(unaudited)

(audited)

Land

137,170

128,590

Buildings and improvements

1,584,390

1,482,075

Accumulated depreciation and amortization

(420,820

)

(408,906

)

Owned real properties, net

1,300,740

1,201,759

Financing receivables,(1) net of credit loss reserve: 2026—$2,869; 2025—$3,631

283,988

359,457

Mortgage loans receivable, net of credit loss reserve: 2026—$3,928; 2025—$3,849

389,461

381,662

Real property investments, net

1,974,189

1,942,878

Notes receivable, net of credit loss reserve: 2026—$258; 2025—$259

25,558

25,615

Investments in unconsolidated joint ventures

12,558

12,524

Investments, net

2,012,305

1,981,017

Other assets:

Cash and cash equivalents

21,667

14,387

Debt issue costs related to revolving line of credit

4,424

4,742

Interest receivable

23,278

22,720

Straight-line rent receivable

17,615

17,949

Prepaid expenses and other assets

23,085

21,245

Total assets

2,102,374

2,062,060

LIABILITIES

Revolving line of credit

282,963

252,863

Term loans, net of debt issue costs: 2026—$1,685; 2025—$1,787

198,315

198,213

Senior unsecured notes, net of debt issue costs: 2026—$855; 2025—$895

386,145

391,105

Accrued interest

3,730

3,806

Accrued expenses and other liabilities

48,195

53,689

Total liabilities

919,348

899,676

EQUITY

Stockholders’ equity:

Common stock: $0.01 par value; 110,000 shares authorized; shares issued and outstanding: 2026—49,779; 2025—48,482

498

485

Capital in excess of par value

1,229,304

1,189,846

Cumulative net income

1,867,000

1,843,407

Accumulated other comprehensive income

1,556

482

Cumulative distributions

(1,988,407

)

(1,959,236

)

Total LTC Properties, Inc. stockholders’ equity

1,109,951

1,074,984

Non-controlling interests

73,075

87,400

Total equity

1,183,026

1,162,384

Total liabilities and equity

2,102,374

2,062,060

Represents acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as financing receivables on the Consolidated Balance Sheets.

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, amounts in thousands)

Three Months Ended

March 31,

2026

2025

OPERATING ACTIVITIES:

Net income

24,956

22,221

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

11,979

9,162

Stock-based compensation expense

2,064

2,253

Loss (gain) on sale of real estate, net

(171

)

Income tax provision

110

—

Income from unconsolidated joint ventures

(295

)

(3,665

)

Income distributions from unconsolidated joint ventures

295

3,699

Straight-line rent adjustment

334

578

Adjustment for collectability of straight-line rental income

—

243

Adjustment for collectability of lease incentives

—

249

Amortization of lease incentives

131

199

(Recovery) provision for credit losses

(684

)

3,052

Amortization of debt issue costs

501

271

Other non-cash items, net

Change in operating assets and liabilities

Increase in interest receivable

(1,921

)

(2,951

)

Decrease in accrued interest payable

(76

)

(170

)

Net change in other assets and liabilities

(6,643

)

(5,423

)

Net cash provided by operating activities

30,763

29,571

INVESTING ACTIVITIES:

Investment in real estate properties

(108,153

)

—

Investment in real estate capital improvements

(2,665

)

(1,326

)

Proceeds from sale of real estate, net

(10

)

1,512

Investment in financing receivables

(314

)

—

Proceeds from payoff of financing receivables

62,220

—

Investment in real estate mortgage loans receivable

(8,005

)

(1,919

)

Principal payments received on mortgage loans receivable

125

124

Investments in unconsolidated joint ventures

(34

)

—

Proceeds from liquidation of investments in unconsolidated joint ventures

—

13,000

Principal payments received on notes receivable

238

Net cash (used in) provided by investing activities

(56,778

)

11,629

FINANCING ACTIVITIES:

Net borrowings under revolving line of credit

30,100

4,500

Repayment of debt

(5,000

)

(7,000

)

Proceeds from common stock issued

43,412

8,485

Payments of common share issuance costs

(118

)

(74

)

Distributions paid to stockholders

(29,171

)

(27,259

)

Acquisition of and distribution paid to non-controlling interests

—

(1,188

)

Financing costs paid

(41

)

—

Cash paid for taxes in lieu of shares upon vesting of long-term equity incentives

(5,875

)

(4,772

)

Other

(12

)

(11

)

Net cash provided by (used in) financing activities

33,295

(27,319

)

Increase in cash and cash equivalents

7,280

13,881

Cash and cash equivalents, beginning of period

14,387

9,414

Cash and cash equivalents, end of period

21,667

23,295

See LTC’s most recent Quarterly Report on Form 10‑Q for Supplemental Cash Flow Information

Supplemental Reporting Measures

FFO, FAD, and NOI are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by U.S. generally accepted accounting principles (“GAAP”). Investors, analysts and the Company use FFO, FAD, and NOI as supplemental measures of operating performance. The Company believes FFO, FAD, and NOI are helpful in evaluating the operating performance of a REIT.

Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. LTC believes that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO and FAD facilitate like comparisons of operating performance between periods. Occasionally, the Company may exclude non-recurring items from FFO and FAD in order to allow investors, analysts and management to compare the Company’s operating performance on a consistent basis without having to account for differences caused by unanticipated items.

FFO, as defined by the National Association of Real Estate Investment Trusts (“Nareit”), means net income available to common stockholders (computed in accordance with GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current Nareit definition or have a different interpretation of the current Nareit definition from that of the Company; therefore, caution should be exercised when comparing the Company’s FFO to that of other REITs.

The Company defines FAD as FFO excluding the effects of straight-line rent, amortization of lease inducement, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in the consolidated balance sheet. At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. Effective interest method, as required by GAAP, is a technique for calculating the actual interest rate for the term of a loan based on the initial origination value. Similar to the accounting methodology of straight-line rent, the actual interest rate is higher than the stated interest rate in the early years of a loan thus creating an effective interest receivable asset included in the interest receivable line item in the consolidated balance sheet and reduces down to zero when, at some point during the loan term, the stated interest rate is higher than the actual interest rate. FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.

The Company defines NOI as net income (loss) (computed in accordance with GAAP) before (i) general and administrative expenses, (ii) transaction costs, (iii) write-off of effective interest, (iv) provision for credit losses, (v) impairment loss, (vi) depreciation and amortization, (vii) interest expense, (viii) gain or loss on sale of real estate and (ix) income tax benefit or expense. We use NOI to reflect the operating performance of our portfolio because NOI excludes certain items that are not associated with the operations of our properties. NOI is not equivalent to our net income (loss) as determined under GAAP. Additionally, our use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. Therefore, caution should be exercised when comparing our NOI to that of other REITs.

While the Company uses FFO, FAD, and NOI as supplemental performance measures of the cash flow generated by operations and cash available for distribution to stockholders, such measures are not representative of cash generated from operating activities in accordance with GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.

Reconciliation of FFO and FAD

The following table reconciles GAAP net income available to common stockholders to each of Nareit FFO attributable to common stockholders and FAD (unaudited, amounts in thousands):

Three Months Ended

March 31,

2026

2025

GAAP net income available to common stockholders

23,437

20,517

Add: Depreciation and amortization

11,979

9,162

Add (Less): Loss (gain) on sale of real estate, net

(171

)

Nareit FFO attributable to common stockholders

35,426

29,508

(Less) Add: Adjustments (1)

(1,691

)

405

FFO, excluding non-recurring items ("Core FFO")

33,735

29,913

Nareit FFO attributable to common stockholders

35,426

29,508

Non-cash income:

Add: Straight-line rent adjustment

334

578

Add: Amortization of lease incentives

131

447

Add: Other non-cash contra-revenue

—

243

Less: Effective interest income

(492

)

(1,401

)

Net non-cash income

(27

)

(133

)

Non-cash expense:

Add: Non-cash compensation charges

2,064

2,253

(Less) Add: (Recovery) provision for credit losses

(684

)

3,052

Net non-cash expense

1,380

5,305

Less: Recurring capital expenditures

(405

)

—

Funds available for distribution ("FAD")

36,374

34,680

Less: Adjustments (1)

(1,124

)

(2,659

)

FAD, excluding non-recurring items ("Core FAD")

35,250

32,021

(1)

See the reconciliation of non-recurring items on the following page for further detail.

Reconciliation of FFO and FAD (continued)

The following table continues the reconciliation between GAAP net income available to common stockholders and each of Nareit FFO attributable to common stockholders and FAD by reconciling the adjustments (unaudited, amounts in thousands):

Three Months Ended

March 31,

2026

2025

Reconciliation of adjustments to Nareit FFO:

Deduct: Recovery for credit losses related to loan payoffs

(765)

(1)

—

Add: Notes receivables and related interest receivable, if applicable, write-off

—

3,064

(2)

Add: Transaction costs

688

(3)

303

(3)

Deduct: Income related to exit IRRs received

(1,614)

(4)

(2,962)

(5)

Total adjustments to Nareit FFO

(1,691)

405

Reconciliation of adjustments to FAD:

Add: Transaction costs

688

(3)

303

(3)

Deduct: Income related to exit IRRs received

(1,812)

(4)

(2,962)

(5)

Total cash adjustments to FAD

(1,124)

(2,659)

Represents the credit loss recovery recorded upon the sale of a portfolio of three skilled nursing centers in Florida that was accounted for as a financing receivable during the 2026 first quarter.

Represents the write-off of a working capital note and related interest receivable balance during the 2025 first quarter in connection with the transition to SHOP.

The transaction costs adjustment for the 2026 first quarter includes all transaction costs incurred, whereas the transaction costs adjustment for the 2025 first quarter includes only SHOP segment startup costs. Transaction costs are excluded from FFO and FAD to improve comparability across periods as such expenditures are not indicative of ongoing operations.

The 2026 first quarter exit IRR income adjustment represents the payment received in connection with the sale noted in (1) above. The FFO adjustment represents the receipt of $1,812, offset by $198 of effective interest receivable previously recognized over the term of the loan through payoff.

The 2025 first quarter exit IRR income adjustment represents the payment received in connection with the redemption of LTC’s preferred equity investment in a joint venture. The 13% exit IRR was not previously recorded.

Reconciliation of FFO and FAD (continued)

The following table continues the reconciliation between GAAP net income available to common stockholders and each of Nareit FFO attributable to common stockholders and FAD (unaudited, amounts in thousands, except per share amounts):

Three Months Ended

March 31,

2026

2025

Basic Nareit FFO attributable to common stockholders per share

0.73

0.65

Diluted Nareit FFO attributable to common stockholders per share

0.72

0.65

Diluted Nareit FFO attributable to common stockholders

35,582

29,671

Weighted average shares used to calculate Nareit diluted FFO attributable to common stockholders per share

49,234

45,961

Basic Core FFO per share

0.69

0.66

Diluted Core FFO per share

0.69

0.65

Diluted Core FFO

33,891

30,076

Weighted average shares used to calculate diluted Core FFO per share

49,234

45,961

Basic FAD per share

0.75

0.77

Diluted FAD per share

0.74

0.76

Diluted FAD

36,530

34,843

Weighted average shares used to calculate diluted FAD per share

49,234

45,961

Basic Core FAD per share

0.73

0.71

Diluted Core FAD per share

0.72

0.70

Diluted Core FAD

35,406

32,184

Weighted average shares used to calculate diluted Core FAD per share

49,234

45,961

Reconciliation of FFO and FAD (continued)

Guidance

The Company is reaffirming its guidance for the 2026 full year. The following guidance ranges reflect management's view of current and future market conditions. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth below. Except as otherwise required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing guidance ranges as a result of new information or new or future developments. The 2026 full year guidance is as follows (unaudited, amounts in thousands, except per share amounts):

Full Year 2026 Guidance

Low

High

Diluted earnings per common share

1.80

1.84

Less: Gain on sale, net of impairment loss

(0.13

)

(0.13

)

Add: Depreciation and amortization

1.10

Diluted Nareit FFO attributable to common stockholders

2.77

2.81

Add: Adjustments

(0.02

)

(0.02

)

Diluted Core FFO

2.75

2.79

Diluted Nareit FFO attributable to common stockholders

2.77

2.81

Add: Non-cash expense

0.14

Less: Recurring capital expenditures

(0.10

)

(0.10

)

Diluted FAD

2.81

2.85

Add: Adjustments

0.01

Diluted Core FAD

2.82

2.86

The assumptions underlying the full year guidance are as follows:

Reconciliation of NOI

The following table reconciles GAAP net income to NOI (unaudited, amounts in thousands):

Three Months Ended

March 31, 2026

Net income

24,956

Add: Income tax provision

110

Add: Loss on sale of real estate, net

Add: General and administrative expenses

8,582

Add: Transaction costs

688

Less: Recovery for credit losses

(684

)

Add: Depreciation and amortization

11,979

Add: Interest expense

10,782

NOI

56,423

The following table provides a summary of the Company’s NOI by segment (unaudited, amounts in thousands):

Three Months Ended

March 31, 2026

Real estate investment portfolio

43,363

SHOP

12,696

Non-segment/corporate

364

Total NOI

56,423

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