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Investing.com - KeyBanc has reiterated its Sector Weight rating on LTC Properties (NYSE:LTC), a $1.62 billion market cap healthcare REIT with a "GREAT" InvestingPro Financial Health score, balancing the company’s enhanced growth story against potential future refunding headwinds.
The investment bank recently updated its position after LTC raised its 2025 cash flow from operations (CFFO) guidance, citing a newly originated loan that contributed to approximately $460 million in year-to-date investments. The company maintains an impressive 24-year streak of consistent dividend payments, currently offering a 6.37% yield.
LTC Properties has significantly increased its investment activity this year and is on track to expand its senior housing operating portfolio (SHOP) exposure to approximately 20% of net operating income (NOI).
KeyBanc analysts believe LTC management is likely utilizing its at-the-market (ATM) equity program, future disposition proceeds, and its revolving credit facility to fund these new deals.
While these accretive investments are expected to improve LTC’s internal and earnings growth profile, KeyBanc notes they may be partially offset by future purchase options and loan repayments, leading the firm to view the current valuation as fair.
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 was below the forecast of $0.45, missing expectations by 28.89%. However, revenue for the quarter was $60.24 million, significantly exceeding the anticipated $37.7 million, marking a revenue surprise of 59.79%. JMP Securities responded to these results by raising its price target for LTC Properties from $40.00 to $43.00, maintaining a Market Outperform rating. The firm noted that LTC Properties’ Core Funds From Operations (FFO) of $0.68 per share matched its estimate and surpassed the consensus expectation of $0.60 per share. Additionally, LTC Properties increased its full-year Core FFO guidance by $0.02 per share. These developments indicate a positive outlook from analysts despite the EPS miss.
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