LTC Properties (LTC) Doubles Down On Senior Housing Bet

On August 5, LTC Properties reported a 64% year-over-year revenue increase to $98.9 million and a nearly doubled net income of $29.5 million. Diluted earnings per share rose to $0.56, more than doubling from $0.32. The company boosted its guidance for 2026, anticipating $900 million in SHOP investments and $700 million in year-to-date acquisitions by the end of Q3.

SHOP is projected to account for 40% of pro forma annualized net operating income by year-end and potentially 75% by 2028. Since its May 2025 launch, SHOP has grown to 39 communities across 12 operators, with 10 new relationships for LTC. Core SHOP NOI was $13.3 million for the quarter, and the company closed $171 million in acquisitions, expecting an additional $529 million in the next quarter.

Full-year diluted earnings per share guidance was raised to $8.08 to $8.10, and the credit facility expanded to $1.1 billion. However, core FFO per diluted share remained flat at $0.68, while total expenses nearly doubled to $75.5 million, with senior housing operating expenses climbing to $42.2 million. SHOP relies on 12 third-party operators, 10 of which are new to LTC, creating execution risk.

Hedge fund ownership increased from 18 to 20 funds, and short interest sits at 5.18% of float. Despite the bullish outlook, the company's per-share metrics lag behind its revenue growth, dilution, and a fast-growing expense base.