LTC Properties, Inc. increased the aggregate commitment of its credit facility to $800 million, adding $200 million in new term loans through the facility’s accordion feature. The amendment to the July 21, 2025 Credit Agreement was executed on December 12, 2025, and the company disclosed the change to the market on December 15, 2025.
The expansion comes after a mixed Q3 2025 earnings report in which the REIT beat revenue expectations by $69.29 million—49.36% above consensus—yet missed earnings per share, reporting a loss of $0.44 versus an expected $0.32. The revenue beat was driven by strong demand for senior housing units, while the EPS miss reflected higher operating costs and a one‑time restructuring charge associated with the sale of older skilled‑nursing facilities.
LTC’s portfolio is now 62% senior housing communities and 38% skilled‑nursing centers, with the Senior Housing Operating Portfolio (SHOP) representing roughly 20% of the total real‑estate holdings. The company’s strategy is to convert legacy skilled‑nursing assets into higher‑yielding senior‑housing communities, a shift that has already increased the SHOP mix and is expected to lift overall returns.
CFO Cece Chikhale said the capital‑structure upgrade “strengthens our ability to execute on external growth initiatives,” while Co‑CEO Pam Kessler noted that the firm “made tremendous progress elevating our SHOP portfolio in 2025 and is focused on driving even more growth throughout 2026.”
To mitigate interest‑rate risk, LTC entered into interest‑rate swap agreements that lock in fixed rates on the new term loans. The swaps provide predictable financing costs and protect the company against potential future rate hikes, supporting the REIT’s long‑term debt‑service profile.
The $800 million facility gives LTC the flexibility to accelerate acquisitions, refinance existing debt, and capitalize on demographic tailwinds in the senior‑housing market. The company maintains a solid dividend policy, with a current yield of about 6.57%, and the expanded credit line reinforces its capacity to sustain dividend payments while pursuing higher‑yielding assets.
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