Executive Summary

Introduced RIDEA/SHOP strategy at scale: converted 12 Anthem properties to SHOP on May 1 and expect one New Perspective conversion in 2Q; issued first full-year 2025 guidance including SHOP NOI of $9.4–$10.3m for the remaining eight months .
Q1 2025 results were stable on cash metrics: Diluted Core FFO/share $0.65 vs $0.64 YoY; Core FAD/share $0.70 vs $0.67 YoY, despite lower total revenues ($49.0m vs $51.4m YoY) due to lapping 2024 one-time rent and lower mortgage income from payoffs .
Balance sheet/liquidity positioned for growth with ~$681m total liquidity and debt to annualized Adjusted EBITDAre of 4.3x; fixed charge coverage improved to 5.0x .
Street context: Q1 was roughly in line to slightly better vs consensus—revenue beat (~$49.0m vs $48.9m*), Primary EPS roughly in line ($0.45 vs $0.46*), and FFO/share in line ($0.65 vs $0.65*)—with catalysts from SHOP ramp, asset sales, and a $300m pipeline (~50% RIDEA) highlighted on the call .
Dividend supported by cash flow: monthly $0.19/share for Q2 2025; Core FAD guidance of $2.78–$2.82/share implies healthy coverage of the $2.28/share annualized dividend .

What Went Well and What Went Wrong

What Went Well

Core cash metrics improved: Diluted Core FFO/share $0.65 (vs $0.64) and Core FAD/share $0.70 (vs $0.67) on lower interest expense, rent increases, and JV income .
Strategic execution: “Through our RIDEA platform, we now have a SHOP portfolio totaling $176 million in gross book value… The implementation of our RIDEA strategy has resulted in an increase in our investment pipeline…” .
Capital strength and coverage: debt to annualized Adjusted EBITDAre 4.3x and fixed charge coverage 5.0x; liquidity ~$681m to fund growth .

What Went Wrong

Revenue down YoY (–$2.3m): lapped a $2.377m one-time rent credit in 2024; lower revenue from sales and mortgage payoffs .
Provision for credit losses increased ($3.1m) tied to working capital note/interest write-off related to RIDEA conversion; also lower gain on sale YoY .
Portfolio churn/uncertainty: operator elected not to renew master lease on 7 SNFs; LTC is selling all seven with closings expected in 4Q25 (one under contract), replacing at least $8.3m of 2025 GAAP rent through redeployment .

Financial Results

Quarterly progression and YoY/seq comparisons:

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenues ($m)	$55.8	$52.6	$49.0
Diluted EPS ($)	$0.66	$0.39	$0.45
NAREIT Diluted FFO/Share ($)	$0.78	$0.72	$0.65
Diluted Core FFO/Share ($)	$0.68	$0.65	$0.65
Diluted FAD/Share ($)	$0.78	$0.66	$0.76
Net Income Margin %	52.3%	34.1%	41.9%

Q1 2025 actual vs S&P Global consensus:

Metric	Q1 2025 Actual	Q1 2025 Consensus	Delta
Total Revenues ($m)	$49.0	$48.9*	+$0.1
Diluted EPS ($)	$0.45	$0.46*	–$0.01
FFO/Share (REIT) ($)	$0.65	$0.65*	In line

Values marked with * are retrieved from S&P Global.

Revenue mix (income statement categories):

Revenue Component ($m)	Q1 2024	Q1 2025
Rental Income	$33.5	$31.4
Interest Income – Financing Receivables	$3.8	$7.0
Interest Income – Mortgage Loans	$12.4	$9.2
Interest & Other Income	$1.5	$1.4
Total Revenues	$51.4	$49.0

KPIs and non-GAAP (YoY):

KPI	Q1 2024	Q1 2025
NAREIT FFO ($m)	$29.9	$29.5
NAREIT FFO/Share – Diluted ($)	$0.69	$0.65
Core FFO ($m)	$27.5	$29.9
Core FFO/Share – Diluted ($)	$0.64	$0.65
FAD ($m)	$31.3	$34.7
FAD/Share – Diluted ($)	$0.73	$0.76
Core FAD ($m)	$28.9	$32.0
Core FAD/Share – Diluted ($)	$0.67	$0.70

Drivers (management detail): revenue decline from one-time items in 2024 and asset sales; increased income from financing receivables and JV exit IRR; lower interest expense; higher provision for credit losses and higher G&A .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Net Income/Share	FY 2025	N/A	$3.38–$3.42	Introduced
Core FFO/Share – Diluted	FY 2025	N/A	$2.65–$2.69	Introduced
Core FAD/Share – Diluted	FY 2025	N/A	$2.78–$2.82	Introduced
SHOP NOI	Remaining 8 months of 2025	N/A	$9.4–$10.3m	Introduced
SHOP FAD Capex	Remaining 8 months of 2025	N/A	$0.6–$0.8m ($0.7–$1.0/unit; $1.1–$1.4 annualized/unit)	Introduced
G&A Expense	FY 2025	N/A	$28.6–$29.5m	Introduced
One-time Exclusions	FY 2025	N/A	$6.5m lease termination fee (New Perspective); RIDEA ramp costs ~$1.1–$1.5m (incl. $0.303m in Q1); ~$1.1m retirement costs	Clarified
Dividend	Q2 2025	$0.19/month	$0.19/month (Apr/May/Jun)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
RIDEA/SHOP strategy	Laying groundwork; de-levering to fund growth; RIDEA interest building	12 Anthem properties converted May 1; New Perspective conversion targeted in ~30 days; SHOP NOI $9.4–$10.3m (8 months)	Executing; scaling SHOP
External growth pipeline	Active pipeline building	$300m pipeline (~50% RIDEA) with focus on 1–2 asset deals, ~7% initial yields, 7.5–8% forward yields	Broader, off-market traction
Operator updates (Prestige)	Modifications, security mechanics	Full contractual interest collected via cash + security; ~$2.3m retroactive Medicaid added to security; saw improving footing; expect full contractual interest through at least May 2026	Risk managed; collections supported
Lease maturities/asset sales	Portfolio recycling and paydowns	Selling 7 SNFs where operator won’t renew; one under contract; plan to replace ≥$8.3m 2025 GAAP rent via redeployment	Asset sale execution in 4Q25
ALG financing/options	N/A	No deferral in Q1; occupancy +150 bps YTD; NC Medicaid eligibility expansion may lift census; guidance assumes no exercise of purchase option (continue full rent)	Fundamentals improving; watch policy tailwind
Balance sheet/liquidity	Increased credit capacity; paydowns	Liquidity ~$681m; 4.3x debt/Adj. EBITDAre; 5.0x FCCR	Strong; supports growth

Management Commentary

“This year is off to a great start… RIDEA platform… SHOP portfolio totaling $176 million… pipeline stands at $300 million, of which RIDEA opportunities represent approximately 50%.” — Clint Malin .
“Core FFO… grew to $0.65… Core FAD… increased $0.70… Today, we are providing a full year 2025 guidance for core FFO per share between $2.65 and $2.69, and core FAD per share of between $2.78 and $2.82.” — CFO Cece Chikhale .
“We expect SHOP to represent a growing share of our portfolio as we scale our platform… building a resilient performance-driven portfolio structured for long-term value creation.” — Pam Kessler .
“Prestige… expect to receive full contractual interest at least through May 2026.” — Gibson Satterwhite .

Q&A Highlights

SHOP NOI methodology and trajectory: 2024 pro forma occupancy ~85%; assume 85% in 2025 with upside from Anthem lease-up; projected full-year $15.2m vs $14.0m in 2024; targeting 87% occupancy by end-2025 with cost efficiencies .
Pipeline yields/diversification: Target ~7% going-in yields on SHOP improving to 7.5–8% with rate/ramp; focus on 1–2 asset deals to manage operator concentration; several off-market opportunities .
Further triple-net to SHOP conversions: No large-scale internal conversions planned; growth to come primarily from external RIDEA plus traditional leases/loans .
New Perspective $6.5m termination fee: Compensates value created and fosters growth partnership in SHOP .
Operator watchlist: Genesis current on rent; no assistance requested; portfolio in core markets with strong coverage .
ALG outlook: No deferrals in Q1; occupancy +150 bps YTD; NC Medicaid eligibility expansion expected to broaden addressable pool .

Estimates Context

Q1 2025 versus S&P Global consensus: revenue ~$49.0m actual vs ~$48.9m* consensus (slight beat); diluted EPS $0.45 actual vs ~$0.46* consensus (roughly in line); FFO/share $0.65 actual vs ~$0.65* consensus (in line) .
Forward estimates (Street): FFO/share consensus for Q2 and Q3 2025 of ~$0.67–$0.67* aligns with LTC’s initial SHOP ramp commentary; revenue estimates step up into 2H as SHOP contributes more* (Street figures subject to revision post-guide).
Where estimates may adjust: Guidance implies FY Core FFO/share $2.65–$2.69 and Core FAD/share $2.78–$2.82; higher G&A and SHOP ramp costs are embedded; asset sales and redeployment timing (7 SNFs) could shift 2H mix .
Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

SHOP/RIDEA is now a tangible growth vector with $176m of assets converted and a defined NOI bridge for 2025; execution on occupancy and expense efficiency, particularly at Anthem, is the near-term driver .
Core cash metrics are trending up YoY (Core FFO/share and Core FAD/share) despite lower GAAP revenue—reinforcing the relevance of LTC’s FFO/FAD lens for dividend sustainability .
Balance sheet capacity (liquidity ~$681m, 4.3x leverage, 5.0x coverage) supports external growth as the $300m pipeline (half RIDEA) converts; expect small deal cadence to manage concentration risk .
Asset sale program (7 SNFs) is an overhang but is planned to close in 4Q25 with proceeds recycled into higher-return opportunities; management targets at least $8.3m GAAP rent replacement via redeployment .
Policy tailwinds (NC Medicaid eligibility) and market-based rent resets ($5.1m expected in 2025 vs $3.4m in 2024) provide incremental upside to cash rents beyond SHOP .
Dividend visibility remains solid: Q2 monthly $0.19; Core FAD guidance implies comfortable payout coverage, even with SHOP capex and elevated G&A embedded .
Trading setup: Estimate revisions should drift toward guidance midpoints as SHOP ramps and sales close; watch quarterly SHOP NOI and occupancy prints, G&A run-rate, and capital recycling progress for inflection cues .

Values marked with * are retrieved from S&P Global. All other figures sourced from company filings and earnings materials as cited.

LTC PROPERTIES INC (LTC)·Q1 2025 Earnings Summary