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Top 4 Healthcare REITs Turning Care Into Big Investor PayoutsLTC Properties NYSE: LTC said it is accelerating its transition toward a seniors housing operating portfolio, raising its 2026 SHOP acquisition guidance by 50% to $900 million at the midpoint while planning substantially higher asset dispositions and loan payoffs.

Co-President and Co-Chief Executive Officer Pam Kessler said the company expects to have closed $700 million of SHOP, or seniors housing operating portfolio, acquisitions by the end of September. By that point, SHOP is expected to account for 40% of pro forma annualized net operating income, ahead of LTC’s prior timetable. The company expects SHOP to reach 50% of annualized NOI by year-end through its acquisition pipeline, redeployment of proceeds from the Prestige loan payoff, and sales of lower-growth investments.

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5 best dividend capture stocks Management said its current acquisition pace provides a path for SHOP to contribute 75% of annualized NOI by the end of 2028. Kessler said the company’s shift from a triple-net lease and lending platform to a SHOP-focused real estate investment trust is intended to increase its long-term organic growth potential for core funds from operations and funds available for distribution per share.

Expanded acquisitions and portfolio recycling Chief Investment Officer Dave Boitano said LTC had closed about $400 million of SHOP acquisitions from the beginning of the year through the end of July. It expects to close another $300 million by the end of the third quarter and roughly $200 million more before year-end.

Nursing Home REITs: The Surprise Heroes of High Yield InvestingThe $700 million in acquisitions expected to close by the end of September have an average age of nine years, with 76% in primary markets as designated by the National Investment Center for Seniors Housing & Care. The communities average about 110 units, and nearly 60% offer a continuum of care across independent living, assisted living and memory care, according to Boitano.

Boitano said the company is targeting communities with characteristics that support durable performance, including asset quality, size, unit mix and market dynamics. He added that LTC has focused on relationships with operating partners, sellers and intermediaries to support its acquisition pipeline.

Co-President and Co-CEO Clint Malin said SHOP gross investments are expected to exceed $1.3 billion by the end of the third quarter, compared with a starting platform of 13 communities with a $175 million gross book value when the company launched SHOP 15 months ago. About 80% of the segment’s growth has been external, he said.

During the question-and-answer session, management said it expects acquisitions to generate low- to mid-teens internal rates of return and described the assets as stabilized rather than value-add investments. Malin said the portfolio has been designed around newer, larger campuses with the ability to grow revenue through pricing, particularly amid current supply constraints.

Dispositions and Prestige payoff LTC increased its 2026 expectation for dispositions and loan payoffs to $730 million, or $465 million above its previous guidance. Executive Vice President of Asset Management Gibson Satterwhite said the company expects a 5.5% cap rate on rent from the incremental $465 million of sales and a 7.3% blended rate on total proceeds for the year.

About two-thirds of the incremental sales are expected to involve skilled nursing properties, bringing anticipated skilled nursing proceeds to $570 million at a blended 7.5% rate. LTC also expects to sell $160 million of triple-net seniors housing assets at a 6.5% cap rate on current rent.

The total includes $180 million from the expected payoff of the Prestige loan, which LTC now models for Oct. 1. Satterwhite said the revised timing reflects the HUD process, but management expects the transaction to close this year. He said HUD had provided final commitments to Prestige for most properties, with a few remaining, and that the borrower’s performance remained strong relative to HUD underwriting metrics.

Management said many skilled nursing transactions involve existing operators or their affiliates. Satterwhite said the sales can allow operators to control the assets’ future upside while enabling LTC to monetize value and redeploy capital into higher-growth SHOP investments. Malin said skilled nursing NOI is expected to fall to the low-20% range of the portfolio by year-end, down sharply from more than 50% a year earlier.

SHOP operating trends LTC’s core SHOP portfolio produced $13.3 million in second-quarter NOI, compared with $12.9 million of pro forma NOI in the first quarter. The company continues to expect midpoint pro forma growth of 14% in the core SHOP portfolio compared with 2025.

Satterwhite said LTC raised its RevPAR assumption by 50 basis points because of pricing strength during the first half and additional rate increases planned for the second half. Occupancy was about 89.7% year to date, matching the year-earlier level and running about 90 basis points below the company’s internal expectations, though it was about 145 basis points above last year’s level on a year-over-year basis.

The portfolio includes 27 properties and has a relatively high concentration of standalone memory care communities, which accounted for about 32% of units. Satterwhite said this composition can lead to more quarter-to-quarter variability. Management said occupancy accelerated late in the second quarter and that it was encouraged by the start of the third quarter, while not assuming the same sharp second-half occupancy ramp seen last year.

Financial position and guidance Chief Financial Officer and Treasurer Cece Chikhale said LTC expanded its credit facility by $300 million, bringing its unsecured revolving credit line to $900 million. The company also expects to enter a new at-the-market equity agreement in the third quarter.

During the second quarter, LTC sold 4.1 million common shares through its ATM program, generating $155 million in net proceeds to pre-fund SHOP acquisitions. Pro forma liquidity was $648 million at quarter-end. Debt to annualized adjusted EBITDA for real estate was 4.2 times, while annualized adjusted fixed-charge coverage was 4.9 times.

Core FFO per share was $0.68 in the second quarter, unchanged from the same period of 2025. Core FAD per share was $0.70, down from $0.71 a year earlier. Chikhale attributed the FAD decline to a higher weighted average diluted share count, reduced income from skilled nursing sales and loan payoffs, and higher interest expense, partly offset by higher SHOP NOI and interest income from loans.

LTC narrowed its 2026 outlook, projecting core FFO per share of $2.76 to $2.78 and core FAD per share of $2.83 to $2.85. The forecast incorporates the $900 million SHOP acquisition midpoint, expected total SHOP NOI of $71 million to $80 million, approximately $4 million of FAD capital expenditures, and $730 million of asset-sale and loan-payoff proceeds.

About LTC Properties (NYSE:LTC)LTC Properties, Inc NYSE: LTC is a real estate investment trust that specializes in financing and investing in long-term health care properties. The company focuses on providing capital to operators of senior housing and health care facilities through sale-leaseback transactions, mortgage financings and structured finance arrangements. Its portfolio primarily comprises skilled nursing facilities, assisted living communities and memory care centers.

Since its founding in 1992, LTC Properties has built a diversified portfolio of properties located across the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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– Enters into New Relationship with Health Dimensions Group –

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”), a real estate investment trust specializing in seniors housing and health care properties, today announced the $40 million SHOP acquisition of a community in Wisconsin that includes 147 independent living, assisted living and memory care units. Health Dimensions Group (“HDG”), a SHOP operator new to LTC, will continue to manage the property.

The acquisition was completed at a cap rate of approximately 7.2%, with an anticipated unlevered IRR in the low- to mid-teens, and was funded with proceeds from ATM sales. During the 2026 second quarter, LTC sold 4.1 million shares of common stock for $154.7 million in net proceeds under its equity distribution agreement.

The Company also announced that it expects to acquire $95 million of SHOP communities within the next month.

“We are excited to welcome HDG to the LTC family with this off-market acquisition. Their passion for delivering care and fostering culture is evident,” said Michael Bowden, LTC’s Senior Vice President of Investments. “Each new relationship we build continues to drive our SHOP transformation.”

“LTC is an excellent growth partner for HDG as we continue to expand our Caring Above and Beyond® approach, a proven process designed to make a real difference in the senior living experience,” said Erin Schvetzoff Hennessey, Chief Executive Officer and Principal of HDG. “We look forward to continuing to provide vibrant, caring environments for older adults and their families, and to mutual success through our collaboration with LTC.”

LTC’s SHOP Snapshot

Since launching SHOP in May 2025, LTC has grown its portfolio to 37 properties, which represents 35% of the Company’s total gross real estate investments. The platform spans 12 operators, 10 of which are new LTC relationships.

About LTC

LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, principally investing through SHOP, as well as triple-net leases, and joint ventures. The Company’s portfolio includes nearly 190 properties throughout the United States. Based on gross real estate investments, nearly 70% 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 statements regarding anticipated unlevered IRR, expected acquisition of $95 million of SHOP communities over the next month, SHOP growth and other statements regarding 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, 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” 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.

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