LTC Properties Targets $600M SHOP Acquisitions, Boosts SHOP to 45% of Portfolio
LTC Properties plans $600 million of seniors housing operating portfolio (SHOP) acquisitions in 2026—nearly 70% above 2025—raising SHOP from 25% to about 45% of investments and 40% of NOI by year-end. It has closed $108 million of SHOP deals, expects $160 million in Q2 and holds a $500 million pipeline.
1. Strategic Shift to SHOP
LTC Properties is transitioning from a triple-net lease REIT into a seniors housing operating portfolio (SHOP) model, aiming to complete this transformation by end-2026. Co-Presidents highlighted that SHOP already represents 25% of investments and management expects it to drive faster growth and higher returns than skilled nursing or loan assets.
2. Acquisition Pipeline and Guidance
Management closed $108 million of SHOP acquisitions in early 2026 and expects another $160 million to close in Q2, supported by a pipeline exceeding $500 million. The company is guiding to a midpoint of $600 million in 2026 SHOP deals, nearly 70% above its 2025 acquisition level.
3. Portfolio Repositioning
LTC plans to reduce skilled nursing and loan exposure below 30% and 10% of its portfolio, respectively, by end-2026. Actions include the $180 million loan prepayment by Prestige around July 1, the sale of five skilled nursing properties and $90 million of loan payoffs over the next 60 days.
4. Capital and Liquidity
The credit facility was expanded to $800 million, including $200 million of term loans, and pro forma liquidity will be about $810 million after $270 million of asset-sale proceeds. Management targets leverage around 4.5x debt/EBITDAre, within its 4x–5x range, to fund growth and support deleveraging over time.