LTC Increases 2025 Investment Guidance 15% to $460 Million, up From $400 Million
-- Transformative Growth Driven by SHOP Investments --
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 it now expects 2025 investments to reach $460 million, up from $400 million, driven primarily by significant SHOP growth.
Updated Investment Guidance
LTC's investment guidance of $460 million includes approximately:
- $135 million of investments closed to date, including $35 million in SHOP investments;
- $235 million of SHOP investments expected to close in the next 30 days; and
- $90 million of SHOP investments expected to close subsequent to the end of the third quarter.
LTC plans to fund the new investments through its recently expanded line of credit, proceeds from previously disclosed property sales and loan payoffs occurring in the second half of 2025, and proceeds from sales of common stock under the Company's ATM.
Recently Completed Investment Activity
Subsequent to the end of the 2025 second quarter, LTC originated a $58 million five-year loan secured by two seniors housing communities with a total of 171 units in California, at an interest rate of 8.25%.
Significant SHOP Growth
LTC has generated substantial growth in SHOP since the portfolio's launch in May 2025. When the expected SHOP investments discussed above are completed, that portfolio will be valued at more than $500 million, representing approximately 20% of LTC's total portfolio. SHOP will include nearly 1,900 private pay independent living, assisted living and memory care units, across 25 properties, and six operating partners, four of whom are new to LTC.
Portfolio Composition
Driven by the strength of its SHOP activity, LTC's portfolio will shift from a roughly equal balance of private-pay seniors housing and skilled nursing to a 65-35% split favoring seniors housing, bringing LTC's skilled nursing concentration to the lowest in Company history.
"We have built significant SHOP traction since its launch less than six months ago with the cooperative conversion of existing triple net leases. Since that time, we have substantially grown SHOP through accretive acquisitions, while shifting toward newer seniors housing communities, and building relationships with operating partners new to LTC," said co-CEO Pam Kessler.
"We are on track to invest $460 million this year, and are continuing to actively expand our investment pipeline. By successfully executing on our strategic investment strategy, LTC is driving a significant business transformation. As a result, we are expanding our opportunity set, reducing our exposure to skilled nursing, and adding newer, stabilized properties to our portfolio, all while driving rapid and meaningful growth. This growth remains front and center as we work to deliver ongoing and increasing value for our stakeholders," said co-CEO Clint Malin.
Beginning September 17, 2025, members of LTC's senior management will participate in meetings with existing and potential investors as part of a non-deal roadshow. A copy of the presentation materials to be used during the meetings will be accessible on September 17, 2025 at www.ir.ltcreit.com.
About LTC
LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, investing through SHOP, triple-net leases, joint ventures, and structured finance solutions. The Company's portfolio includes nearly 200 properties throughout the United States. Based on gross real estate investments, approximately 55% 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 2025 full-year guidance and statements regarding the Company's investment pipeline, including SHOP investments, portfolio size, composition, and growth, sources of funding, and future 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, the Company's dependence on its operators for revenue and cash flow; operational and legal risks and liabilities under the Company's new SHOP segment; 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 federal, state, or local 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 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" contained in the Company's Annual Report on Form 10‑K for the fiscal year ended December 31, 2024, 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.
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For more information contact:
Mandi Hogan
(805) 981‑8655