LTC Properties: 'Buy' This 5.6% Yield Before SHOP Growth Accelerates

Gen Alpha Investing Group Follow Summary LTC Properties remains a compelling income and value pick, currently yielding 5.6% with a forward P/FFO of 14.7x. LTC is rapidly transitioning to the higher-growth SHOP model, targeting 75% of NOI from SHOP by 2028 and 15% SHOP NOI growth in 2026. Portfolio recycling and equity issuance are temporarily limiting FFO/share growth, but pressures should moderate as SHOP investments scale. I maintain a "Buy" rating on LTC, citing rising occupancy, favorable demographics, conservative leverage, and a significant valuation discount to peers. Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More » Richard Drury/DigitalVision via Getty Images REITs are sometimes thought of as being bond proxies. That classification can’t be further from the truth, as property values and rents rise in an inflationary environment. As such, they can be great places to park capital to protect the purchasing power of the This article was written by Gen Alpha 23.5K Followers Follow I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon. I provide high-yield, dividend growth investment ideas in the investing group iREIT®+HOYA Capital. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of LTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.