NYSE:LTC

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.


Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

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: LTC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

LTC

-4.7%

US REITs

-7.6%

US Market


1 Year Return

12.3%

LTC

11.6%

US REITs

10.2%

US Market

Return vs Industry: LTC underperformed the US REITs industry which returned 12.8% over the past year.

Return vs Market: LTC underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

LTCIndustryMarket
7 Day2.2%-4.7%-7.6%
30 Day6.4%-1.5%-4.5%
90 Day6.6%0.9%-0.6%
1 Year17.9%12.3%16.1%11.6%12.5%10.2%
3 Year21.1%4.1%31.7%15.3%37.1%28.3%
5 Year46.4%14.4%52.7%21.3%60.8%43.2%

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

Valuation

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

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LTC ($49.31) is trading below our estimate of fair value ($81.25)

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


Price To Earnings Ratio

PE vs Industry: LTC is good value based on its PE Ratio (24.3x) compared to the REITs industry average (36.3x).

PE vs Market: LTC is poor value based on its PE Ratio (24.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: LTC is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: LTC is overvalued based on its PB Ratio (2.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTC's forecast earnings growth (4.5% per year) is above the savings rate (1.7%).

Earnings vs Market: LTC's earnings (4.5% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: LTC's revenue (4.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LTC's revenue (4.8% 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 LTC'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?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTC has high quality earnings.

Growing Profit Margin: LTC's current net profit margins (43.3%) are lower than last year (92.7%).


Past Earnings Growth Analysis

Earnings Trend: LTC's earnings have grown by 12.7% per year over the past 5 years.

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

Earnings vs Industry: LTC had negative earnings growth (-48.1%) over the past year, making it difficult to compare to the REITs industry average (5.9%).


Return on Equity

High ROE: LTC's Return on Equity (10.3%) 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: LTC has a high level of physical assets or inventory.

Debt Coverage by Assets: LTC's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.57%

Current Dividend Yield


Upcoming Dividend Payment

Purchase LTC Properties before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.6%marketbottom25%1.5%markettop25%4.0%industryaverage3.7%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: LTC's dividend (4.62%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: LTC's dividend (4.62%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.1%), LTC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LTC's dividends in 3 years are forecast to be thoroughly covered by earnings (1.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Wendy Simpson (70yo)

12.9yrs

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 ($USD3.32M) is about average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wendy Simpson
Chairman12.9yrsUS$3.32m0.86% $17.0m
Pamela Shelley-Kessler
Executive VP12.9yrsUS$2.03m0.28% $5.5m
Clint Malin
Executive VP & Chief Investment Officer15.8yrsUS$2.03m0.25% $5.0m
Mandi Hogan
Vice President of Marketing4yrsno datano data
Leanne Davis
Human Resource Manager0yrsno datano data
Caroline Chikhale
Senior VP4.7yrsUS$1.24mno data
Douglas Korey
Senior VP & MD of Business Development5.1yrsno datano data
Gibson Satterwhite
Vice President of Asset Management2.5yrsno datano data
Peter Lyew
Vice President & Director of Tax19.7yrsUS$268.79kno data

9.0yrs

Average Tenure

53yo

Average Age

Experienced Management: LTC's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wendy Simpson
Chairman12.9yrsUS$3.32m0.86% $17.0m
Devra Shapiro
Independent Director10.6yrsUS$180.01k0.093% $1.8m
Timothy Triche
Independent Director19.8yrsUS$180.01k0.091% $1.8m
Boyd Hendrickson
Lead Independent Director10.1yrsUS$190.01k0.045% $894.1k
James Pieczynski
Independent Director5.9yrsUS$175.01k0.056% $1.1m

10.1yrs

Average Tenure

72yo

Average Age

Experienced Board: LTC's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: LTC Properties, Inc.
  • Ticker: LTC
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: US$1.983b
  • 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 Analysis2020/02/27 00:38
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.