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    The Bull Case For LTC Properties (LTC) Could Change Following Expanded SHOP Investments And Credit Facility Growth

    Simply Wall St·12/25/2025 21:18:24
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    • LTC Properties, Inc. recently completed two Senior Housing Operating Portfolio acquisitions in Tennessee and Wisconsin and redeemed US$6.4 million of preferred equity, while also fulfilling its US$460 million 2025 investment guidance focused largely on SHOP assets.
    • The move, alongside plans for a further US$110 million of SHOP acquisitions in early 2026, underscores LTC’s emphasis on scaling senior housing operations and recycling capital into higher-yielding structures.
    • We’ll now examine how expanding the credit facility to US$800 million influences LTC’s investment narrative and growth-through-SHOP strategy.

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    LTC Properties Investment Narrative Recap

    To own LTC Properties, you need to believe in its shift toward higher-yielding Senior Housing Operating Portfolio assets as a way to grow earnings while managing leverage and operator risk. The recent completion of 2025 SHOP investments and expansion of its credit facility support that growth-through-SHOP path in the near term, but also sharpen the short term focus on execution risk at acquired properties and the balance between debt-funded growth and dividend sustainability.

    The December expansion of LTC’s credit facility to US$800 million, including US$200 million of term loans with largely fixed interest rates, is especially relevant here. It gives LTC capacity to fund its US$110 million SHOP pipeline into 2026 while partially addressing refinancing risk, though higher absolute debt levels can still pressure coverage metrics if cash flow from new SHOP assets underperforms.

    Yet even with these growth plans, investors should be aware that rising interest costs and heavier reliance on debt funding could...

    Read the full narrative on LTC Properties (it's free!)

    LTC Properties’ narrative projects $445.5 million revenue and $107.5 million earnings by 2028.

    Uncover how LTC Properties' forecasts yield a $37.83 fair value, a 10% upside to its current price.

    Exploring Other Perspectives

    LTC 1-Year Stock Price Chart
    LTC 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community span a wide range, from about US$37.83 to US$77.27 per share, showing how far opinions can diverge. When you set these views against LTC’s increasing use of debt to fuel SHOP acquisitions, it becomes even more important to compare different scenarios for earnings resilience and balance sheet risk before forming your own stance.

    Explore 2 other fair value estimates on LTC Properties - why the stock might be worth over 2x more than the current price!

    Build Your Own LTC Properties Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.