LTC REPORTS 2026 THIRD QUARTER RESULTS AS SHOP MOMENTUM CONTINUES
LTC PROPERTIES INC (LTC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 -8655 FOR IMMEDIATE RELEASE For more information contact: Eric Clark (805) 981-8655 LTC REPORTS 2026 THIRD QUARTER RESULTS AS SHOP MOMENTUM CONTINUES – Year-to-Date SHOP Acquisitions of Nearly $950 Million Surpass Previously Disclosed Mid-
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance could attract new capital and support the stock, but execution risk remains.
Market read
The release provides fresh, material data that can move LTC's share price and influences the broader REIT sector.
What to watch
Potential execution risk on the $1B SHOP acquisition plan and exposure to senior‑housing market cycles.
LTC REPORTS 2026 THIRD QUARTER RESULTS AS SHOP MOMENTUM CONTINUES
Third-quarter revenue, Core FFO per share, Core FAD per share and SHOP NOI advanced, while the company increased its SHOP investment mid-point guidance to $1 billion and reaffirmed full-year per-share guidance. GAAP net income was driven substantially by $323,948 of gain on sale of real estate, net.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $115.2M | – | Increased $46 million |
| Resident fees and services, three months ended September 30, 2026GAAP | $70.54M | – | – |
| Rental income, three months ended September 30, 2026GAAP | $27.50M | – | – |
| Interest income from financing receivables, three months ended September 30, 2026GAAP | $5.64M | – | – |
| Interest income from mortgage loans, three months ended September 30, 2026GAAP | $10.39M | – | – |
| Interest and other income, three months ended September 30, 2026GAAP | $1.17M | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $89.47M | – | – |
| Seniors housing operating expenses, three months ended September 30, 2026GAAP | $50.81M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $11.31M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $13.72M | – | – |
| Impairment loss, three months ended September 30, 2026GAAP | $2.31M | – | – |
| Gain (loss) on sale of real estate, net, three months ended September 30, 2026GAAP | $323.9M | – | – |
| Net income available to common stockholders, three months ended September 30, 2026GAAP | $346.4M | – | Increased $367 million |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 6.39 | – | – |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $ 6.44 | – | – |
| Nareit FFO available to common stockholders, three months ended September 30, 2026non-GAAP | $40.07M | – | – |
| Diluted Nareit FFO per common share, three months ended September 30, 2026non-GAAP | $ 0.74 | – | – |
| Core FFO available to common stockholders, three months ended September 30, 2026non-GAAP | $38.65M | – | – |
| Diluted Core FFO per share, three months ended September 30, 2026non-GAAP | $ 0.71 | – | Increased $0.02 |
| Funds available for distribution, three months ended September 30, 2026non-GAAP | $40.9M | – | – |
| Diluted FAD per share, three months ended September 30, 2026non-GAAP | $ 0.75 | – | – |
| Core FAD, three months ended September 30, 2026non-GAAP | $39.48M | – | – |
| Diluted Core FAD per share, three months ended September 30, 2026non-GAAP | $ 0.73 | – | Increased $0.01 |
| NOI, three months ended September 30, 2026non-GAAP | $62.45M | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $309.5M | – | – |
| Net income available to common stockholders, nine months ended September 30, 2026GAAP | $399.3M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $ 7.70 | – | – |
| Nareit FFO available to common stockholders, nine months ended September 30, 2026non-GAAP | $109.8M | – | – |
| Core FFO available to common stockholders, nine months ended September 30, 2026non-GAAP | $107.9M | – | – |
| Funds available for distribution, nine months ended September 30, 2026non-GAAP | $112.9M | – | – |
| Core FAD, nine months ended September 30, 2026non-GAAP | $111.5M | – | – |
| NOI, nine months ended September 30, 2026non-GAAP | $173.5M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $106.4M | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | −$218.8M | – | – |
| Net cash provided by financing activities, nine months ended September 30, 2026GAAP | $280.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Real estate investment portfolio NOI, three months ended September 30, 2026No segment driver was separately provided. | $42.19M | – | – |
| SHOP NOI, three months ended September 30, 2026SHOP acquisitions and conversions. | $19.73M | – | – |
| Real estate investment portfolio NOI, nine months ended September 30, 2026No segment driver was separately provided. | $126.1M | – | – |
| SHOP NOI, nine months ended September 30, 2026SHOP acquisitions and conversions. | $46.35M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Operating expensesGeneral and administrative costs estimates: $33.1 million to $33.9 million
- NoteDiluted earnings per common share: $ 7.80 to $ 7.82
- NoteDiluted earnings per common share in the narrative guidance section: $8.08 to $8.10
- NoteDiluted Nareit FFO available to common stockholders: $ 2.82 to $ 2.84
- NoteDiluted Core FFO: $ 2.76 to $ 2.78
- NoteDiluted FAD: $ 2.84 to $ 2.86
- NoteDiluted Core FAD: $ 2.83 to $ 2.85
- NoteGross investment estimates: $1.0 billion
- NoteAsset sales and loan payoffs projections: $730 million
- NoteSHOP NOI: $73.5 million to $76.4 million
- NoteCore 27-property SHOP portfolio NOI: $53.5 million to $55.5 million
- NoteProforma NOI growth: ~13.0% at the mid-point
- NoteOccupancy growth: ~70 basis points from 2025 proforma average occupancy of ~89.7%
- NoteProjected RevPOR increases: ~5.1%
- NoteProjected ExPOR increases: ~2.8%
- NoteSHOP FAD capital expenditures: $3.8 million to $4.2 million
- NoteSHOP non-FAD capital expenditures estimate: $14.1 million
- NoteTransaction costs: $3.6 million to $3.8 million
- NoteGain on sale, net of impairment loss: (6.04)
- NoteDepreciation and amortization: 1.03
- NoteAdjustments for participating securities: 0.03
- NoteNon-core adjustments to diluted Core FFO: (0.06)
- NoteNon-cash income: (0.01)
- NoteNon-cash expense: 0.11
- NoteRecurring capital expenditures: (0.08)
- NoteNon-core adjustments to diluted Core FAD: (0.01)
Capital returns
- Dividends declared and paid per common share, three months ended September 30, 2026: $ 0.57
- Dividends declared and paid per common share, nine months ended September 30, 2026: $ 1.71
- Distributions paid to stockholders, nine months ended September 30, 2026: $ (89,830)
- Proceeds from common stock issued, nine months ended September 30, 2026: $ 236,790
- Entered into a new $500 million equity distribution agreement in the 2026 third quarter to replace the existing $400 million equity distribution agreement.
What drove it
- Total revenues increased $46 million primarily due to SHOP acquisitions and conversions, a lease termination fee received in the 2026 third quarter related to the sale of the leased properties, the turnaround effect of a prior year non-cash write off of straight-line effective interest, increased interest income from loan originations and construction funding, and higher rent from market-based rent resets and escalations.
- Diluted Core FFO per share increased $0.02 primarily due to higher income from SHOP acquisitions, increased interest income from loan originations and additional loan funding, and higher rental income from market-based rent resets.
- SHOP as of November 3, 2026 comprised 50 communities managed by 14 operators, including 12 new LTC relationships.
- SHOP annualized NOI contribution was 45%; acquisitions were $1.3 billion; gross investments were 53%; and 60% of properties were in primary markets as designated by NIC.
- Previously disclosed third-quarter SHOP acquisitions were $566 million, covering 12 communities across seven states, with an average year-one cap rate of approximately 6.9% and an average anticipated unlevered IRR in the low- to mid-teens.
- Previously disclosed fourth-quarter SHOP acquisitions were $208 million, covering four communities across four states, with an average year-one cap rate of approximately 6.6% and an average anticipated unlevered IRR in the low- to mid-teens.
Concerns
- GAAP net income available to common stockholders included $323,948 of gain on sale of real estate, net.
- The company recorded a $2,310 impairment loss in the third quarter.
- Interest expense was $11,312 in the third quarter, compared with $8,791 in the prior-year period.
- Rental income was $27,505 in the third quarter, compared with $27,842 in the prior-year period, while interest income from financing receivables was $5,644 compared with $7,096.
- Asset sales and loan payoffs offset portions of the revenue and earnings benefits from SHOP acquisitions, conversions, rent resets and loan originations.
- The narrative guidance section states diluted earnings per common share of $8.08 to $8.10, while the detailed guidance reconciliation states $ 7.80 to $ 7.82.
What to watch
- Execution of the $1.0 billion gross investment estimate and the $208 million of previously disclosed fourth-quarter SHOP acquisitions.
- Delivery against SHOP NOI guidance of $73.5 million to $76.4 million and core 27-property SHOP NOI guidance of $53.5 million to $55.5 million.
- The $730 million asset sales and loan payoffs projection, including $179.8 million expected to pay off in the 2026 fourth quarter.
- Occupancy growth of ~70 basis points, projected RevPOR growth of ~5.1%, and projected ExPOR growth of ~2.8% for the core SHOP portfolio.
- The effect of increased revolving credit borrowings and the new $500 million equity distribution agreement on funding and interest expense.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 182,983; December 31, 2025: $ 14,387.
- Revolving line of credit as of September 30, 2026: $ 429,900; December 31, 2025: $ 252,863.
- Term loans, net of debt issue costs, as of September 30, 2026: $ 198,470; December 31, 2025: $ 198,213.
- Senior unsecured notes, net of debt issue costs, as of September 30, 2026: $ 356,724; December 31, 2025: $ 391,105.
- Total assets as of September 30, 2026: $ 2,755,248; December 31, 2025: $ 2,062,060.
- Total liabilities as of September 30, 2026: $ 1,047,392; December 31, 2025: $ 899,676.
- Net cash provided by operating activities, nine months ended September 30, 2026: $ 106,422.
- Investment in real estate properties, nine months ended September 30, 2026: $ (737,890).
- Proceeds from sale of real estate, net, nine months ended September 30, 2026: $ 469,928.
- Net borrowings under revolving line of credit, nine months ended September 30, 2026: $ 177,037.
- Total proforma liquidity: $903 million, comprising $11 million cash on hand, $490 million available under the unsecured revolving line of credit with $410 million outstanding, and $402 million available under the ATM.
Analysis
LTC reported third-quarter total revenues of $ 115,246, compared with $ 69,290 in the prior-year quarter. Resident fees and services were $ 70,539, compared with $ 22,203, reflecting the expanding SHOP platform. Management attributed the $46 million revenue increase primarily to SHOP acquisitions and conversions, a lease termination fee, the reversal effect of a prior-year non-cash write-off, increased interest income from loan originations and construction funding, and rent resets and escalations. Asset sales and loan payoffs were offsets.
GAAP results were dominated by real estate disposition activity. Net income available to common stockholders was $ 346,374 and diluted earnings per common share were $ 6.39, while gain on sale of real estate, net was $ 323,948. The company also recorded a $ 2,310 impairment loss, and interest expense increased to $ 11,312 from $ 8,791. Core operating measures improved more modestly: diluted Core FFO per share was $ 0.71 versus $ 0.69, and diluted Core FAD per share was $ 0.73 versus $ 0.72.
SHOP is increasingly central to the portfolio. Third-quarter SHOP NOI was $ 19,731 versus $ 4,841, while real estate investment portfolio NOI was $ 42,190 versus $ 44,843. As of November 3, 2026, SHOP comprised 50 communities managed by 14 operators, with annualized NOI contribution of 45%. LTC reported $1.3 billion of SHOP acquisitions since the platform began, and stated that $566 million of previously disclosed third-quarter SHOP acquisitions and $208 million of fourth-quarter SHOP acquisitions carry average year-one cap rates of approximately 6.9% and approximately 6.6%, respectively.
Liquidity and funding expanded alongside acquisition activity. The company reported $ 182,983 in cash and cash equivalents at September 30, 2026 and $ 429,900 on its revolving line of credit. Nine-month operating cash flow was $ 106,422, investment in real estate properties was $ (737,890), and proceeds from common stock issued were $ 236,790. LTC also entered into a new $500 million equity distribution agreement and reported $903 million of total proforma liquidity.
For full-year 2026, LTC increased gross investment estimates to $1.0 billion at the mid-point and narrowed SHOP NOI guidance to $73.5 million to $76.4 million. It reaffirmed diluted Core FFO guidance of $ 2.76 to $ 2.78 and diluted Core FAD guidance of $ 2.83 to $ 2.85. The filing contains inconsistent full-year diluted EPS guidance: the narrative section states $8.08 to $8.10, while the detailed reconciliation states $ 7.80 to $ 7.82. This discrepancy is material because the detailed reconciliation also identifies gain on sale, net of impairment loss, of (6.04) as a major component of the EPS bridge.
Management, verbatim
Our SHOP strategy is delivering and reshaping LTC’s future by transforming our portfolio, building a scalable operating platform, and strengthening our ability to capitalize on new growth opportunities.
Clint Malin, Co-CEO
SHOP acquisitions have reached nearly $950 million through October, surpassing our 2026 mid-point acquisition target, increasing our earnings power, and extending our runway for growth.
Clint Malin, Co-CEO
While our goals were ambitious, we have successfully built a scalable platform that is generating considerable momentum.
Pam Kessler, Co-CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of actual results with prior guidance is included.
- Gross margin was not reported.
- Operating margin was not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Share repurchases were not reported.
- Segment revenue was not reported; the filing reports NOI by segment.
- A reconciled explanation for the conflict between the narrative full-year diluted EPS guidance of $8.08 to $8.10 and the detailed guidance-table range of $ 7.80 to $ 7.82 was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
LTC Properties is a REIT focused on seniors housing and health‑care properties, reporting its Q3 2026 earnings via an SEC 8‑K filing.
Ticker impact
LTC reported Q3 2026 results with net income of $346.4M and raised its 2026 SHOP investment mid‑point guidance to $1B.
likely upward pressure as investors price in the raised guidance
The combination of a $367M swing to net income and a $100M increase in investment guidance signals improved cash flow and growth prospects, which typically supports the stock.
Market effects
Strengthens the seniors‑housing REIT sector as SHOP strategy shows scalable growth.
Positive for U.S. real‑estate investment trusts and related lenders.
Limited; primarily affects U.S. REIT investors.
Counterpoint
If the raised guidance is already priced in, the stock may face a short‑term pull‑back.
Key entities
- companyLTC Properties, Inc.
Senior‑housing REIT that issued the earnings release.
