DB:LTP

Stock Analysis Report

Executive Summary

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending.

Rewards

Trading at 47.6% below its fair value

Earnings are forecast to grow 0.35% per year

Pays a high and reliable dividend of 4.95%

Risk Analysis

Large one-off items impacting financial results

Profit margins (54.7%) are lower than last year (85.8%)



Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

MarketAxess Holdings

NasdaqGS:MKTX

Share Price & News

How has LTC Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LTP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

LTP

1.3%

DE REITs

0.7%

DE Market


1 Year Return

7.0%

LTP

34.5%

DE REITs

15.6%

DE Market

Return vs Industry: LTP underperformed the German REITs industry which returned 32.9% over the past year.

Return vs Market: LTP underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

LTPIndustryMarket
7 Day6.1%1.3%0.7%
30 Day8.0%5.0%1.7%
90 Day-7.9%5.6%6.3%
1 Year12.4%7.0%39.1%34.5%19.2%15.6%
3 Year13.1%-2.5%40.4%20.5%18.3%7.9%
5 Year29.6%1.5%43.9%13.0%26.8%9.4%

Price Volatility Vs. Market

How volatile is LTC Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LTC Properties undervalued compared to its fair value and its price relative to the market?

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LTP (€40.56) is trading below our estimate of fair value (€77.34)

Significantly Below Fair Value: LTP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LTP is poor value based on its PE Ratio (18.5x) compared to the REITs industry average (8.9x).

PE vs Market: LTP is good value based on its PE Ratio (18.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: LTP is poor value based on its PEG Ratio (53.4x)


Price to Book Ratio

PB vs Industry: LTP is overvalued based on its PB Ratio (2.3x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is LTC Properties forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTP's forecast earnings growth (0.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: LTP's earnings (0.3% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: LTP's earnings are forecast to grow, but not significantly.

Revenue vs Market: LTP's revenue (7% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: LTP's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LTP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has LTC Properties performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTP has a large one-off gain of $17.8M impacting its September 30 2019 financial results.

Growing Profit Margin: LTP's current net profit margins (54.7%) are lower than last year (85.8%).


Past Earnings Growth Analysis

Earnings Trend: LTP's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: LTP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LTP had negative earnings growth (-31.5%) over the past year, making it difficult to compare to the REITs industry average (96.7%).


Return on Equity

High ROE: LTP's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LTC Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LTP has a high level of physical assets or inventory.

Debt Coverage by Assets: LTP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: LTP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LTP has a sufficient allowance for bad loans.

Low Risk Liabilities: LTP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LTP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LTP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LTP has an appropriate level of bad loans.


Next Steps

Dividend

What is LTC Properties's current dividend yield, its reliability and sustainability?

4.88%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.5%industryaverage2.9%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: LTP's dividend (4.95%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: LTP's dividend (4.95%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: LTP's dividends per share have been stable in the past 10 years.

Growing Dividend: LTP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.2%), LTP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LTP's dividends in 3 years are forecast to be thoroughly covered by earnings (1.8% payout ratio).


Next Steps

Management

What is the CEO of LTC Properties's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

Wendy Simpson (70yo)

12.8yrs

Tenure

US$3,315,795

Compensation

Ms. Wendy L. Simpson has been the Chief Executive Officer and President of LTC Properties Inc. since October 2005 and March 2007 respectively. Ms. Simpson served as the Chief Financial Officer of LTC Prope ...


CEO Compensation Analysis

Compensation vs Market: Wendy's total compensation ($USD3.32M) is above average for companies of similar size in the German market ($USD1.50M).

Compensation vs Earnings: Wendy's compensation has been consistent with company performance over the past year.


Management Age and Tenure

12.8yrs

Average Tenure

53yo

Average Age

Experienced Management: LTP's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

72yo

Average Age

Experienced Board: LTP's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€115,20319 Jun 19
Timothy Triche
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,800
Max Price€41.16

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Wendy Simpson (70yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$3.32m
  • Doug Korey

    Senior VP & MD of Business Development

    • Tenure: 5yrs
  • Pam Shelley-Kessler (53yo)

    Executive VP

    • Tenure: 12.8yrs
    • Compensation: US$2.03m
  • Clint Malin (46yo)

    Executive VP & Chief Investment Officer

    • Tenure: 15.7yrs
    • Compensation: US$2.03m
  • Peter Lyew (61yo)

    Vice President & Director of Tax

    • Tenure: 19.6yrs
    • Compensation: US$268.79k
  • Cece Chikhale (42yo)

    Senior VP

    • Tenure: 15.7yrs
    • Compensation: US$1.24m
  • Mandi Hogan

    Vice President of Marketing

    • Tenure: 3.9yrs
  • Leanne Davis

    Human Resource Manager

    • Gibson Satterwhite

      Vice President of Asset Management

      • Tenure: 2.4yrs

    Board Members

    • Wendy Simpson (70yo)

      Chairman

      • Tenure: 12.8yrs
      • Compensation: US$3.32m
    • Devra Shapiro (72yo)

      Independent Director

      • Tenure: 10.5yrs
      • Compensation: US$180.01k
    • Timothy Triche (74yo)

      Independent Director

      • Tenure: 19.7yrs
      • Compensation: US$180.01k
    • Boyd Hendrickson (74yo)

      Lead Independent Director

      • Tenure: 10yrs
      • Compensation: US$190.01k
    • Jim Pieczynski (56yo)

      Independent Director

      • Tenure: 5.8yrs
      • Compensation: US$175.01k

    Company Information

    LTC Properties, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: LTC Properties, Inc.
    • Ticker: LTP
    • Exchange: DB
    • Founded: 1992
    • Industry: Health Care REITs
    • Sector: Real Estate
    • Market Cap: US$1.857b
    • Listing Market Cap: US$1.676b
    • Shares outstanding: 39.75m
    • Website: https://www.LTCreit.com

    Number of Employees


    Location

    • LTC Properties, Inc.
    • 2829 Townsgate Road
    • Suite 350
    • Westlake Village
    • California
    • 91361
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    LTCNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1992
    LTPDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1992
    0JSPLSE (London Stock Exchange)YesCommon StockGBUSDAug 1992

    Biography

    LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC holds more than 200 investments in 28 states with 30 operating partners. The portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 20:51
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.