LTC Properties: Provided a 38.52% Return in 10 Years

About LTC Properties

LTC Properties Inc. (NYSE:LTC) is a real estate investment trust that invests in and manages senior housing and healthcare facilities. It finances these assets through various methods, such as sale-leaseback, mortgages, and joint ventures. Its portfolio has a balanced distribution between senior housing and skilled nursing centers.

Financial Performance and Expectations

The company is preparing to announce its third-quarter earnings on November 4, 2025. Wall Street analysts expect earnings per share to drop to $0.54, which is below last year's $0.78 level. Quarterly revenues are expected to be $52.18 million, which is a decrease compared to last year's $55.78 million level.

Investor Assessment

LTC Properties’s stock was trading at around $43.43 ten years ago. If you had invested $10,000, you could have purchased approximately 230 shares. Today, as the stock price has dropped to $35.38, the value of your investment is recorded at $8,146. However, LTC Properties has also made dividend payments during these 10 years.

The current dividend yield of LTC Properties is 6.45%. Over the past 10 years, it has paid a total of $24.78 in dividends per share; which indicates that you could have earned $5,706 solely from dividends.

When we combine $8,146 and $5,706, the total value of your investment reaches $13,852. This situation shows that if you had invested $10,000 ten years ago, your total return would have been 38.52%. However, this rate is quite low compared to the 295.27% total return of the S&P 500 over the same period.

Analyst Opinions and Targets

LTC Properties is rated with a “Market Outperform” consensus according to 14 analyst evaluations. The target price indicates a potential increase of over 4% compared to the current stock price.

The company reported a $0.51 level of FFO (Funds From Operations) in its second-quarter announcement on August 4, which is below the consensus estimate of $0.66. Revenues were reported at $60.24 million, exceeding the consensus estimate of $34.08 million.

CEOs Pam Kessler and Clint Malin stated, “Growth is a priority for LTC. We have now incorporated $400 million in our investments to support our objectives, which will double the size of our SHOP portfolio. Even at this level of investment activity, we are pursuing additional diverse SHOP transactions to transform our company from a small-scale, triple-net real estate investment trust into a larger and more diversified senior housing-focused real estate investment trust.”

The company updated its year-end 2025 forecasts, projecting diluted FFO per share in the range of $2.67 to $2.71, higher than the previous range of $2.65 to $2.69.

With a limited potential increase of 4% for growth-oriented investors, LTC Properties stock may not seem very attractive. However, it can be a good option for income-focused investors looking to benefit from a solid dividend yield.