LTC Properties Need More Time to Recover: Analyst Rates Stock a Hold

🌥️Trending News

LTC ($NYSE:LTC) Properties is a healthcare Real Estate Investment Trust (REIT) that owns properties and provides loans primarily for assisted living, memory care, and long-term care skilled nursing centers. As an analyst, I rate LTC Properties stock as a hold. My analysis points to several factors that have yet to fully resolve, and suggest LTC Properties needs more time to recover.

First, occupancy rates have yet to fully recover from the pandemic. Furthermore, a number of states are still experiencing higher than average unemployment rates, which may further threaten occupancy rates. Second, the company has been struggling with quarterly cash flow. As a result, the company may need to take on additional debt or look to increase equity capital in order to make up for lost revenue. Finally, the company’s balance sheet is still under stress. The pandemic has had a negative impact on the company’s liquidity and leverage ratios. Leverage remains higher than pre-pandemic levels, and the company will need to reduce its debt levels in order to return to healthier financial position. Given the uncertainty of the pandemic’s long-term effects on LTC Properties and its industry, I rate the stock as a hold until further evidence of recovery appears.

Market Price

On Wednesday, LTC Properties stock opened at $32.9 and closed at $33.1, up by 0.9% from the prior closing price of 32.8. This increase indicates a slight improvement in the company’s market performance, but analysts remain cautious about its ability to fully recover in the near future. Analysts are likely to continue to be cautious about LTC Properties stock until it shows more evidence of a sustained rebound. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Ltc Properties. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Ltc Properties. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Ltc Properties. More…

Key Ratios Snapshot

Some of the financial key ratios for Ltc Properties are shown below. More…

Analysis

GoodWhale conducted an analysis of LTC PROPERTIES‘ financials and found that according to the Star Chart, the company is strong in asset, profitability, and medium in dividend, and weak in growth. The health score given was 6/10 considering its cashflows and debt which suggests that it is likely to safely ride out any crisis without the risk of bankruptcy. Further, based on our evaluations, we classified LTC PROPERTIES as a ‘cow’, a type of company we conclude that has the track record of paying out consistent and sustainable dividends. Such a company would likely be attractive to value investors and those looking for a steady stream of dividends. Dividend investors may also be attracted to this stock due to its ‘medium’ dividend rating. Moreover, since LTC PROPERTIES has a medium rating for profitability, investors seeking capital appreciation may also be interested in this company. More…

Peers

The healthcare industry is highly competitive, with LTC Properties Inc competing against Omega Healthcare Investors Inc, Sabra Health Care REIT Inc, and Healthcare Realty Trust Inc. All four companies are striving to provide the best care possible to their patients while also maintaining profitability. While each company has its own strengths and weaknesses, LTC Properties Inc has been able to stay ahead of its competitors by continually innovating and expanding its services.

– Omega Healthcare Investors Inc ($NYSE:OHI)

Omega Healthcare Investors Inc is a real estate investment trust that specializes in investing in skilled nursing and assisted living facilities. As of December 31, 2020, the company owned 1,533 properties in 42 states and the United Kingdom. The company has a market cap of $7.46 billion as of April 2021.

– Sabra Health Care REIT Inc ($NASDAQ:SBRA)

Sabra Health Care REIT Inc is a real estate investment trust focused on the healthcare sector. The company’s portfolio includes skilled nursing facilities, assisted living facilities, memory care facilities, and other healthcare-related properties. As of December 31, 2020, Sabra Health Care REIT owned and operated 377 healthcare properties across the United States and Canada.

Sabra Health Care REIT’s market cap is 3.1B as of 2022. The company’s focus on the healthcare sector and its portfolio of healthcare-related properties makes it a valuable investment for those interested in the healthcare industry.

– Healthcare Realty Trust Inc ($NYSE:HR)

Healthcare Realty Trust Inc. is a real estate investment trust that focuses on owning, managing and developing healthcare-related properties. The company’s portfolio includes hospitals, medical office buildings, outpatient facilities and senior housing. As of December 31, 2020, Healthcare Realty Trust owned or had interests in 260 healthcare properties totaling approximately 23.6 million square feet of space.

Summary

LTC Properties is a healthcare REIT that owns properties and provides loans. Investing in this company requires a long-term outlook, as its stock has been declining in the past year.

However, the company is well-diversified and has strong fundamentals. It has an A- rating from S&P, and a strong balance sheet with minimal leverage. While there is risk involved, the company’s management is experienced and the REIT sector is likely to benefit from the aging population. This is an attractive investment and could be a good pick for those looking for investment in the healthcare sector.