LTC Properties (LTC) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 25, 2026 astatine 11:36 AM CST 31 min read

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Wednesday, Feb. 25, 2026 astatine 11 a.m. ET

• Executive Vice President, Chief Financial Officer, and Corporate Secretary — Pamela J. Shelley-Kessler

• Executive Vice President and Chief Investment Officer — J. Gibson Satterwhite

• Executive Vice President, Chief Portfolio Officer — David Boitano

• Chief Financial Officer — Caroline L. Chikhale

• President, Chief Operating Officer, and Board Member — Clint B. Malin

Pamela J. Shelley-Kessler: Good morning, and convey you for joining us. Eight months aft launching our SHOP initiative, we are astir halfway done our translation from a lower-growth triple-net REIT into a faster-growing SHOP-focused REIT, a translation that volition pb to higher multiyear interior and outer SHOP and net maturation and to superior shareholder return. This translation has included important concern successful people, systems, and technology, which volition proceed to beryllium a absorption to enactment our assertive maturation plans. We person made large advancement increasing our seniors lodging portfolio done SHOP, reflecting palmy execution crossed each facet of the business. Today, we are guiding to $600 cardinal successful acquisitions astatine the midpoint for 2026, each of which we expect volition beryllium successful SHOP.

This acquisition guidance is astir 70% higher than SHOP acquisitions successful 2025. 2026 started disconnected beardown with $100 cardinal successful SHOP acquisitions already completed and $160 cardinal connected docket to adjacent successful the 2nd quarter, which takes america astir halfway to our $600 cardinal midpoint concern guidance for the year. Throughout our transformation, we person continued to support a beardown equilibrium expanse with well-laddered indebtedness maturities and an FAD payout ratio beneath 80%. Since launching SHOP past May, we grew it to 25% of our concern portfolio by year-end.

Based connected our 2026 acquisition guidance, we expect to extremity this twelvemonth with SHOP increasing to 45% of our concern portfolio and 40% of our NOI, capitalizing connected LTC Properties, Inc.’s quality to accelerate our maturation done acquisitions. By launching SHOP arsenic a small-cap REIT, we are leveraging the denominator effect to our advantage. LTC’s smaller archetypal footprint provides the powerfulness to seizure outsized maturation wherever adjacent humble investments person a meaningful and disposable impact. Additionally, aft the prepayment of the $180 cardinal Prestige indebtedness expected aboriginal this year, loans should beryllium reduced to little than 10% of our portfolio and skilled nursing investments volition correspond little than 30% by the extremity of 2026.