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Investing.com - BMO Capital upgraded LTC Properties (NYSE:LTC) from Underperform to Market Perform, maintaining its price target of $39.00. The healthcare REIT, with a market capitalization of $1.63 billion, has demonstrated remarkable stability with a 24-year track record of consistent dividend payments, currently yielding 6.43%.
The research firm cited potential earnings growth enhancement through SHOP (Senior Housing Operating Portfolio) acquisitions, which could drive multiple expansion for the healthcare REIT.
SHOP is expected to represent approximately 20% of LTC’s pro forma portfolio, with BMO noting that acquisition execution will be a key factor for the company going forward.
BMO Capital highlighted that LTC’s balance sheet is well-positioned with potential valuation upside compared to peers, though tenant and capital recycling execution risks remain for the company. This assessment aligns with InvestingPro’s analysis, which shows a strong current ratio of 9.93 and an overall financial health score rated as "GREAT."
While the firm acknowledged that mergers and acquisitions are possible for LTC Properties, BMO considers them unlikely in the near term, despite asset management expertise becoming increasingly important for SHOP-focused REITs over time. For deeper insights into LTC’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, LTC Properties reported its financial results for the second quarter of 2025, showing a mixed performance. The company posted earnings per share (EPS) of $0.32, which fell short of the forecast of $0.45 by 28.89%. However, revenue significantly exceeded expectations, reaching $60.24 million compared to the anticipated $37.7 million, marking a revenue surprise of 59.79%. In light of these results, JMP Securities raised its price target for LTC Properties from $40 to $43 and maintained a Market Outperform rating. The company also reported Core Funds from Operations (FFO) of $0.68 per share for the quarter, aligning with JMP’s estimate and surpassing the consensus expectation of $0.60 per share. Additionally, LTC Properties increased its full-year Core FFO guidance by $0.02 per share. KeyBanc reiterated its Sector Weight rating, acknowledging the company’s improved growth outlook while noting potential future refunding challenges. These updates reflect recent developments for LTC Properties.
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