Genesis Healthcare files for Chapter 11 bankruptcy

Published 10/07/2025, 14:40
Genesis Healthcare files for Chapter 11 bankruptcy

NEW YORK - Genesis Healthcare, Inc. has filed for Chapter 11 bankruptcy protection, according to an announcement from LTC Properties Inc. (NYSE:LTC), a real estate investment trust that has lease agreements with Genesis. InvestingPro data shows LTC maintains a strong financial position with a market capitalization of $1.62 billion and impressive gross profit margins of 93%.

Genesis currently leases six skilled nursing centers from LTC, with five facilities located in New Mexico and one in Alabama, totaling 782 beds. The master lease between the companies is set to mature on April 30, 2026, though Genesis had recently exercised a 5-year extension option on June 3, 2025, which would have extended the agreement to April 30, 2031. According to InvestingPro analysis, LTC’s robust current ratio of 12.67 indicates strong ability to meet short-term obligations.

According to LTC Properties, Genesis has paid its contractual rent through July 2025. The annualized revenue from Genesis represents 4.5% of LTC’s total annualized revenue and 5.1% of its annualized contractual cash revenue, based on figures as of March 31, 2025.

LTC holds $4.7 million in security from Genesis in the form of a letter of credit as required by their master lease agreement.

The real estate investment trust’s portfolio includes nearly 200 properties across approximately 25 states, with assets evenly balanced between seniors housing and skilled nursing centers. LTC has maintained dividend payments for 24 consecutive years, currently offering a 6.4% yield, reflecting its commitment to shareholder returns. Get more insights and detailed analysis with InvestingPro, where additional ProTips and comprehensive financial metrics are available.

The information in this article is based on a press release statement from LTC Properties Inc.

In other recent news, LTC Properties reported its first-quarter 2025 earnings, missing analyst estimates with an earnings per share (EPS) of $0.45, slightly below the forecast of $0.4567, and revenue of $31.44 million, which fell short of the expected $37.3 million. Despite the earnings miss, RBC Capital Markets maintained its Sector Perform rating for LTC Properties, keeping the price target steady at $36.00. RBC analysts noted the launch of the Senior Housing Operating Portfolio (SHOP) platform as a significant development and slightly raised their earnings estimates for the company. Additionally, LTC Properties announced a monthly cash dividend of $0.19 per share for the third quarter of 2025, in line with its regular distribution schedule. The company is actively expanding its SHOP platform, which is expected to contribute positively to its earnings performance. LTC’s strategic initiatives, including RIDEA conversions and leadership changes, are seen as potential growth drivers. The company has provided full-year 2025 guidance, projecting Core FFO per share between $2.65 and $2.69. These developments reflect LTC Properties’ ongoing efforts to adapt and grow within the senior housing and healthcare real estate market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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