Highlights

  • LTC shows 52.85% one-year basic EPS growth, a P/E of 15.84 and PEG of -6.08.
  • Second quarter net income available to common stockholders was $29,479 thousand, against $14,938 thousand.
  • Total revenues were $98,859 thousand against $60,240 thousand a year earlier.
  • The company raised its revolving line of credit commitment to $900.0 million.

LTC Properties (NYSE:LTC) reported second quarter 2026 net income available to common stockholders of $29,479 thousand, and the undervalued growth stock figures read 52.85% one-year growth in basic earnings per share, a trailing twelve-month P/E of 15.84 and an expected-basis PEG of -6.08, with shares trading at USD 42.53 on October 28, 2026, down 0.87%. On the company's side, the health care REIT amended its Credit Agreement during the second quarter, acquired five additional seniors housing communities after June 30, and declared a monthly cash dividend of $0.19 per share for July, August and September 2026.

LTC Properties is based in Westlake Village, California, and is incorporated in Maryland. It is a health care real estate investment trust that invests in seniors housing and health care properties through its owned seniors housing operating portfolio (SHOP), triple-net leases and joint ventures, and it has been operating since August 1992. Its property types include seniors housing communities and skilled nursing centers. At June 30, 2026, its SHOP segment comprised 34 seniors housing communities managed by 11 independent operators.

Growth: Second Quarter Earnings, Revenues and SHOP Segment

Net income available to common stockholders was $29,479 thousand for the three months ended June 30, 2026, against $14,938 thousand a year earlier, and $52,916 thousand for the six months against $35,455 thousand. Basic earnings per common share were $0.57 against $0.33, and diluted earnings per common share were $0.56 against $0.32.

Total revenues were $98,859 thousand against $60,240 thousand. Resident fees and services were $56,132 thousand against $11,950 thousand, which the company attributed to the SHOP segment established in the second quarter of 2025. Rental income was $25,990 thousand against $30,177 thousand. Gain on sale of real estate was $7,562 thousand against $332 thousand. Since establishing SHOP, the company has acquired 16 communities for $524,355 thousand and converted 18 communities with a gross value of $271,563 thousand.

Valuation: P/E of 15.84, PEG of -6.08 and Dividends

The P/E ratio of 15.84 is measured on trailing twelve-month earnings, and the PEG ratio of -6.08 on an expected basis. Dividends declared and paid were $0.57 per common share for the quarter and $1.14 for the six months. Total equity was $1.3 billion at June 30, 2026. Debt to gross asset value was 29.7%.

On the second quarter call, management said the company's SHOP transformation is well ahead of schedule and is happening faster than predicted.

Capital Raising, Credit Agreement and Liquidity

Liquidity was $829.0 million at June 30, 2026, including $40,435 thousand of cash and $700,000 thousand available under the unsecured revolving line of credit. The Amended Credit Agreement increased aggregate commitments by $300.0 million to $1.1 billion, including a $900.0 million revolving line of credit, with an accordion of up to $2.0 billion. At August 5, 2026, $356,100 thousand was outstanding and $543,900 thousand was available on the revolver.

Debt obligations totaled $777,090 thousand at a weighted average interest rate of 4.31%, and the company stated it was in compliance with its financial covenants. In the six months, it sold 5,257,220 shares for $198.1 million in net proceeds under its $400.0 million Equity Distribution Agreement and paid $59.0 million of cash dividends.

Disclosed Risks and Outlook

Interest expense was $9,484 thousand against $8,014 thousand, which the company attributed primarily to new term loans. The company stated that if operators experience operating difficulties, there could be a material adverse impact on its results, liquidity or financial condition. Prestige Healthcare, its largest operator by total revenues, represented 7.8% of total revenues and 11.9% of total assets and gave notice of its intent to repay a $179.9 million mortgage loan, which the company expects in the fourth quarter of 2026. Genesis Healthcare filed for Chapter 11 bankruptcy in the third quarter of 2025, and the company wrote off a $1.3 million straight-line rent receivable. CMS updated Medicare SNF payment rates by 2.4% for fiscal year 2027.

On the call, management said core SHOP occupancy was about 90 basis points behind internal projections for the first half of 2026.

For 2026, management stated on the call that it narrowed its guidance to Core FFO of $2.76 to $2.78 per share and Core FAD of $2.83 to $2.85 per share. It raised SHOP acquisition guidance to $900 million at the midpoint and expects $730 million of proceeds from asset sales and loan payoffs.