LTC Properties, Inc.

2Q 2026 Core FFO per share was $0.68, flat versus $0.68 in 2Q 2025. Core FAD per share was $0.70 versus $0.71 in 2Q 2025. Core SHOP NOI was $13.3 million in the second quarter, up from $12.7 million pro forma in Q1. At quarter end, debt to annualized adjusted EBITDA for real estate was 4.2x and annualized adjusted fixed charge coverage was 4.9x. The company sold 4.1 million shares under its ATM for $155 million in net proceeds, and pro forma liquidity was $648 million. For 2026, LTC now expects Core FFO per share of $2.76 to $2.78 and Core FAD per share of $2.83 to $2.85. Guidance now assumes $900 million of SHOP acquisitions at the midpoint, total SHOP NOI of $71 million to $80 million, $730 million of asset sales and loan payoffs, and FAD capex of about $4 million. Management also said SHOP will represent 40% of pro forma annualized NOI by end of September and 50% by year-end, with 75% by 2028.

Pam Kessler struck an upbeat tone, saying LTC’s SHOP strategy is “well ahead of schedule” and that the company is transforming from a triple-net and lending platform into a higher-growth SHOP-focused REIT. She emphasized that the company is recycling capital from lower-growth assets into SHOP at attractive pricing, with the aim of materially lifting long-term Core FFO and FAD growth per share. She also said the company could keep pushing beyond the current plan if capital recycling and deal flow remain favorable.

Cece Chikhale focused on liquidity, leverage, and the updated earnings outlook. She said LTC expanded its credit facility by $300 million to a $900 million unsecured revolver, expects a new ATM agreement in Q3, and ended with $648 million of pro forma liquidity. She also cited leverage of 4.2x debt to annualized adjusted EBITDA for real estate and 4.9x fixed charge coverage, and explained that 2Q Core FAD per share declined to $0.70 from $0.71 due to higher diluted share count, lower SNF sale/loan payoff income, and higher interest expense, partly offset by higher SHOP NOI and loan income.

Analysts focused on what is driving the higher acquisition and disposition volumes, why per-share guidance was unchanged despite bigger investment targets, and how much more SNF sale activity might remain. Management said the higher acquisition target is mostly a timing issue, while the larger disposition/loan payoff number reflects multiple transactions and attractive pricing for skilled nursing assets, often back to operators or affiliates. On SHOP, management explained that occupancy guidance was moderated because they do not want to bank on the same second-half occupancy ramp seen last year, but they are seeing better RevPOR and a strong start to Q3. They also said the Prestige loan payoff remains expected this year, with more certainty now that HUD commitments have come in.