Ltc Properties ‘all-in’ On Shop Growth, Cutting Skilled Nursing

LTC Properties (NYSE: LTC) is “all-in” on growing and supporting its 30-community senior housing operating portfolio.

The Westlake Village, California-based real estate investment trust (REIT) in the first quarter of 2026 acquired a three-property portfolio in Georgia, converted two communities in Texas from triple-net to SHOP and sold a three-community portfolio of skilled nursing facilities. That transaction activity totaled $108 million in acquisitions.

Subsequent to the end of the quarter, the company converted two communities from triple-net to the senior housing operating portfolio, after which it terminated the master lease and entered into a management agreement with a new operator. It also acquired a senior housing community in Illinois and entered into a management agreement with a new operator. LTC’s leaders believe the company is on track to execute on another $250 million in deals in 2Q26, all told.

The REIT has a $460 million pipeline and its leaders expect to to bring on four new operators in 2026, bringing the company’s total up to 13. LTC’s senior housing operating portfolio deals made up 29% of its gross investments in the first quarter of 2026. The company expects to grow that share to 45% by year-end, when about 40% of the company’s net operating income (NOI) is expected to stem from the portfolio.

As the company invests in SHOP, it also is seeking to offload more skilled nursing properties in the future. To that end, Clint Malin, LTC’s co-president and co-CEO, said that the company has “received a lot of inbound phone calls about opportunities” to sell them.

Malin added he is “very confident in our ability to source transactions.”

As leaders of other senior living REITs have pointed out, assembling a SHOP portfolio is not for the faint of heart given all the moving parts involved among owners and operating partners.

Pam Kessler, LTC co-president and co-CEO, said the operator and its leaders are well-aware of the complexities of SHOP and that it is “not something we’ve undertaken lightly.” LTC has paired its growth strategy with new data capabilities in its transformation from a triple-net-focused REIT to one focused on SHOP over the last 18 months.

“If you’re going to do SHOP, you have to go all-in. We’ve completely, fundamentally changed the way this company thinks operates, the way we acquire properties,” she said on the company’s first-quarter earnings call Thursday. “We are hiring the best managers, but we’re helping those managers create the best outcome for our portfolio.”

LTC’s funds from operations (FFO) was 72 cents per share in the first quarter of 2026, up from 65 cents in the first quarter of 2025.

LTC Properties has 186 properties throughout the U.S., 120 of which are senior living communities.

The communities LTC is acquiring are on average 10 years old. In all but one instance, LTC retained the operators of the communities it acquired, according to Malin.

Kessler added there is no limit in mind for the number of operators it would consider working with, as it helps source additional investment opportunities. Currently, 65% of its current pipeline has been sourced off market. It is also looking to expand outside of memory care offerings by adding in 100+-unit independent living and assisted living communities to its portfolio.

Throughout 2026, LTC has plans to spend around $600 million in senior housing acquisitions, and should be more than halfway to its target with deals that are set to close in the second quarter, according to Malin.

LTC’s stock is priced at $38.62, up 0.3% from the previous close.

The post LTC Properties ‘All-in’ On SHOP Growth, Cutting Skilled Nursing appeared first on Senior Housing News.