LTC Raises 2026 SHOP Investment Target to $1 Billion

The Tip Desk · November 4, 2026 · 3 min read

SHOP acquisitions reached nearly $950 million through October as the seniors housing REIT lifted its mid-point target from $900 million.

LTC Properties (LTC), a real estate investment trust specializing in seniors housing and health care properties, raised its 2026 SHOP investment mid-point to $1 billion from $900 million after year-to-date SHOP acquisitions of nearly $950 million through October surpassed the prior target.

The company also narrowed 2026 SHOP NOI guidance to $73.5 million to $76.4 million from $71.2 million to $79.9 million. It reaffirmed full-year 2026 diluted earnings of $8.08 to $8.10 a share, Core FFO of $2.76 to $2.78 a share, and Core FAD of $2.83 to $2.85 a share.

Co-CEO Clint Malin said SHOP acquisitions had reached nearly $950 million through October, surpassing the 2026 mid-point acquisition target, increasing earnings power, and extending the runway for growth.

In the third quarter ended September 30, 2026, total revenues were $115.25 million, up from $69.29 million a year earlier. The company said the $46 million increase was primarily due to SHOP acquisitions and conversions, a lease termination fee related to the sale of leased properties, the turnaround effect of a prior-year non-cash write-off of straight-line effective interest, higher interest income from loan originations and construction funding, and higher rent from market-based resets and escalations, offset by decreases from asset sales and loan payoffs.

Net income available to common stockholders was $346.37 million, or $6.39 a share, versus a $20.15 million loss, or $0.44 a share, a year earlier. The company attributed the $367 million increase primarily to a higher gain on sale, the straight-line interest turnaround, higher SHOP NOI, the lease termination fee, and higher interest and rental income, partially offset by higher depreciation and amortization and interest expense, a third-quarter impairment charge, and lower revenue from asset sales and loan payoffs.

Gain on sale of real estate, net was $323.95 million, versus a $0.74 million loss a year earlier. An impairment loss of $2.31 million appeared in the quarter.

Resident fees and services, which represent SHOP operating income, were $70.54 million. Rental income was $27.51 million. Interest income from mortgage loans was $10.39 million.

Diluted Core FFO was $0.71 a share, up from $0.69 a year earlier. The company said the $0.02 increase was primarily due to higher income from SHOP acquisitions, higher interest income from loan originations and additional loan funding, and higher rental income from market-based rent resets, partially offset by lower revenue from asset sales and loan payoffs and higher interest expense. Diluted Core FAD was $0.73 a share.

As of November 3, 2026, the SHOP platform included 50 communities managed by 14 operators, 12 of them new LTC relationships. SHOP represented 45% of annualized NOI and 53% of gross investments, with an average property vintage of nine years and 60% of communities in NIC-designated primary markets. Since the May 2025 launch, SHOP acquisitions totaled $1.3 billion.

Previously disclosed third-quarter transactions included $566 million of SHOP acquisitions across 12 communities in seven states, with an average year-one cap rate of about 6.9% and average anticipated unlevered IRR in the low- to mid-teens. Asset sales of $464 million comprised 17 skilled nursing centers for $304 million, producing a $195 million gain, and 17 seniors housing communities for $160 million, producing a $129 million gain. Fourth-quarter SHOP acquisitions of $208 million across four communities were also disclosed.

LTC entered a new $500 million equity distribution agreement to replace a $400 million agreement and reported $903 million of proforma liquidity, including $11 million cash on hand, $490 million available under the revolver with $410 million outstanding, and $402 million available under the ATM.

Co-CEO Pam Kessler said the company had built a scalable SHOP platform and remained confident in its ability to further differentiate LTC as a growth-oriented seniors housing REIT.