LTC Properties Books $6.39 A Share On $464 Million Of Property Sales, As Senior Housing Reaches 45% Of Income
The REIT lifted its 2026 senior-housing investment midpoint to $1 billion from $900 million, while core funds from operations rose to $0.71 a share.
LTC Properties, a real estate investment trust focused on seniors housing and health care properties, reported diluted earnings of $6.39 per share for the third quarter, against a loss of $0.44 a year earlier, after selling dozens of properties. The company said Tuesday that its senior-housing operating portfolio, known as SHOP, now makes up 45% of annualized net operating income, and it raised its 2026 investment target for the unit.
A one-time gain drives the profit
Net income available to common stockholders was $346.4 million, versus a $20.1 million loss a year earlier. Most of it came from a $323.9 million gain on the sale of real estate.
The sales, previously disclosed, totaled $464 million: 17 skilled nursing centers sold for $304 million, with a $195 million gain, and 17 seniors housing communities sold for $160 million, with a $129 million gain. Revenue rose to $115.2 million from $69.3 million, helped by SHOP acquisitions and a lease termination fee tied to the sale of leased properties.
The underlying measures moved less. Core funds from operations, which strip out one-time items, were $0.71 per diluted share, up from $0.69. Core funds available for distribution were $0.73, up from $0.72.
Shifting from nursing homes to SHOP
LTC owns seniors housing and skilled nursing properties leased to operators, makes mortgage loans, and, since launching SHOP in May 2025, runs communities managed by outside operators. The portfolio has grown to 50 communities with 14 operators, 12 of them new to LTC, and SHOP holds 53% of gross investments.
SHOP acquisitions have reached nearly $950 million through October, past the company's 2026 midpoint target. "Our SHOP strategy is delivering," Co-CEO Clint Malin said in the release. SHOP net operating income was $19.7 million in the quarter, up from $4.8 million a year ago.
The company also disclosed $566 million of third-quarter SHOP acquisitions and $208 million of fourth-quarter deals across four communities.
Guidance and the balance sheet
LTC raised its 2026 SHOP investment midpoint to $1 billion from $900 million and narrowed its SHOP net operating income range to $73.5 million to $76.4 million, from $71.2 million to $79.9 million.
The press release says LTC reaffirmed full-year diluted earnings guidance of $8.08 to $8.10 per share, while the guidance table in the same release shows $7.80 to $7.82. Core funds from operations guidance stays at $2.76 to $2.78 per share.
Pro forma liquidity is $903 million, including $490 million available on its revolving credit line and $402 million under its at-the-market stock program, under which companies sell new shares gradually. LTC's market value was about $2.4 billion.
LTC holds its earnings call Wednesday at 11:00 a.m. Eastern.
