LTC Properties, Inc. reported fourth‑quarter 2025 results with total revenue of $84.3 million, a 60% year‑over‑year increase from $52.6 million in Q4 2024. Net income for the quarter was $101.62 million, translating to diluted earnings per share of $2.11, a sharp rise from the $0.39 EPS reported in the same period a year earlier. The jump in net income was largely driven by a $78.1 million gain on the sale of real estate, offsetting one‑time charges and operating expenses that narrowed the margin relative to the prior year.
The company’s funds from operations (FFO) reached $34.5 million, while core FFO—excluding non‑recurring items—was $33.5 million. Revenue of $84.3 million fell short of analyst consensus estimates, which ranged from $64.7 million to $117.2 million, marking a miss that highlights the short‑term impact of the portfolio transition. Core FFO per share of $0.70 beat the consensus estimate of $0.68, reflecting the benefit of the growing Seniors Housing Operating Portfolio (SHOP) segment.
The SHOP segment contributed $22.2 million in resident fees and services during the quarter, a figure reported by the company. This segment has been a key driver of the company’s higher growth trajectory, as management aims to convert a larger portion of its portfolio to the RIDEA model and increase the SHOP share to 45% by the end of 2026.
Management reiterated its 2026 full‑year guidance, projecting diluted EPS of $1.80 to $1.84 and core FFO per share of $2.75 to $2.79. The first‑quarter 2026 outlook was set at diluted EPS of $0.60 to $0.62 and core FFO of $0.66 to $0.68, a level below consensus estimates, signaling caution about near‑term earnings while maintaining confidence in the long‑term SHOP strategy.
"Our strategic shift toward SHOP is delivering higher growth and fundamentally reshaping our long‑term earnings profile," said Pam Kessler, LTC’s Co‑CEO. "With a more resilient portfolio consisting of newer assets and a focused approach to capital allocation, we ended 2025 with momentum and confidence in our ability to continue creating long‑term value for shareholders." Co‑CEO Clint Malin added, "The transformation of our portfolio to a material composition of higher‑growth SHOP investments will drive better risk‑adjusted returns for our shareholders."
Investors focused on the Q1 2026 guidance, which fell short of consensus estimates, tempering enthusiasm for the strong quarterly results. The guidance reflects management’s view that the transition to a higher‑growth SHOP mix will take time to fully materialize, while the company remains confident in its long‑term strategy.
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