LTC Properties (NYSE: LTC) is poised to have the lowest concentration of skilled nursing assets in its portfolio in company history.
The Westlake Village, California-based real estate investment trust (REIT) has been actively expanding its seniors housing operating portfolio (SHOP). As a result, its portfolio will shift from about an equal balance between private-pay senior housing and skilled nursing to being 65% senior housing and 35% SNF.
That’s according to a press release LTC issued Monday, announcing an increase in 2025 investment guidance from $400 million to $460 million, driven largely by SHOP growth.
“By successfully executing on our strategic investment strategy, LTC is driving a significant business transformation,” Co-CEO Clint Malin stated in the release. “As a result, we are expanding our opportunity set, reducing our exposure to skilled nursing, and adding newer, stabilized properties to our portfolio, all while driving rapid and meaningful growth. This growth remains front and center as we work to deliver ongoing and increasing value for our stakeholders.”
Within the next 30 days, LTC expects to close on $235 million in SHOP investments, with $90 million in SHOP investments expected to close subsequent to Q3 2025. At this point, the portfolio would be valued at more than $500 million, represent about 20% of LTC’s total portfolio and encompass about 1,900 units.
LTC is not the only investment firm to pivot away from skilled nursing. Invesque recently announced the sale of the last two SNFs in its portfolio, for instance.
But other firms are hotly pursuing skilled nursing deals. CareTrust REIT (NYSE: CTRE) is pursuing a $600 million pipeline that is mostly skilled nursing opportunities, CEO David Sedgwick said about a month ago.
Sabra Health Care REIT (Nasdaq: SBRA) also is hoping to close on some skilled nursing transactions this year, and CEO Rick Matros believes that in terms of regulatory risk, the sector is in “a really good place.”
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