LTC Properties Reports 20% Revenue Growth to $60.2 Million in Q2 2025

LTC Properties, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $60.2 million, a 20% increase from $50.1 million in the same period last year. The company attributed this growth to a rise in interest income from financing receivables, which surged to $7.1 million from $3.8 million, and the introduction of resident fees and services amounting to $12 million, following the conversion of several properties into its new Seniors Housing Operating Portfolio (SHOP) segment. However, rental income decreased to $30.2 million from $31.7 million, primarily due to the conversion of 13 communities from Triple-Net leases to the SHOP segment.

In terms of profitability, LTC Properties reported a net income of $16.5 million, down from $19.7 million in the prior year, resulting in a diluted earnings per share of $0.32 compared to $0.44. The decline in net income was influenced by increased expenses, which totaled $44.5 million, up from $31 million a year earlier. Notably, general and administrative expenses rose to $8.4 million from $6.8 million, and transaction costs increased significantly due to the transition to the SHOP segment.

Strategically, LTC Properties has made significant changes to its operational structure by implementing the RIDEA framework, which allows for greater oversight of its properties while enabling independent operators to manage day-to-day operations. This transition included the termination of master leases with Anthem Memory Care and New Perspective, converting their properties into the SHOP segment. As of June 30, 2025, the SHOP segment comprises 13 communities managed by independent operators, contributing to the company's diversification strategy.

Operationally, LTC Properties reported a total of 121 owned properties across 25 states, with a gross investment of approximately $1.3 billion. The company has also seen a notable increase in its financing receivables, which stood at $361.4 million, reflecting its strategy to enhance cash flow through interest income. The company’s total assets increased to $1.8 billion, with total liabilities rising to $750.5 million, leading to a total equity of $1.04 billion.

Looking ahead, LTC Properties expressed optimism about its growth trajectory, particularly with the recent acquisition of a 67-unit assisted living and memory care community in California for $35.2 million. The company plans to continue leveraging its liquidity, which stood at $640.4 million as of June 30, 2025, to fund future investments and maintain its dividend payments. The management remains vigilant regarding market conditions and regulatory changes that could impact its operations, particularly in the healthcare sector.