LTC Properties (LTC) Financials

LTC Properties (NYSE: LTC) has demonstrated several notable financial trends over the past four years based on the quarterly data analysed up through Q1 of 2025.

• Net income attributable to common shareholders has increased steadily from approximately $6.0 million in Q2 2023 to $20.5 million as of Q1 2025, showing strong earnings growth.
• Earnings per share (basic and diluted) have generally trended upward, from $0.15 or less in mid-2023 to $0.45 by Q1 2025, reflecting improved profitability on a per-share basis despite some fluctuations.
• Total non-interest income has grown, reaching $49.2 million in Q1 2025, fueled by higher other service charges and other non-interest income, which supports revenue diversification beyond interest income.
• The company’s operating cash flow remains robust, producing $29.6 million cash from continuing operations in Q1 2025, supporting internal funding and liquidity.
• Total equity and noncontrolling interests have grown consistently to over $1 billion by Q1 2025, indicating strengthening shareholder equity and financial stability.

• Interest expense varies quarter to quarter but generally hovers around $7-12 million. Total interest income reported in recent quarters is consistently zero, implying LTC's business model does not rely on interest income but rather property-related income and fees.
• Depreciation and amortization expenses remain significant, reflecting capital-intensive operations typical of real estate investment trusts.
• Cash dividends per common share have remained stable at $0.57 per quarter over the last couple of years, indicating a consistent payout policy with respect to shareholders.
• Loan and lease portfolio values fluctuate but generally remain between $300 million and $750 million, showing some portfolio management changes but within a steady range.
• Debt levels, both long-term and short-term, remain significant and somewhat stable, requiring ongoing prudent debt servicing and refinancing management.

• Total revenue declined from $77.6 million in Q4 2022 to $49.2 million in Q1 2025, mostly due to the elimination of interest income and lower total non-interest income quarters.
• Provision for credit losses increased significantly in Q1 2025 to about $3.05 million, indicating elevated credit risk or potential asset quality concerns.
• Other operating expenses fluctuated but remain substantial, with $17.99 million recorded as of Q1 2025, pressuring margins.
• Impairment charges have been considerable in some quarters (e.g., $12 million in Q2 2023, $6.95 million in Q4 2024), negatively affecting earnings.
• Net cash used in financing activities was large and negative in many quarters, with debt repayment and dividend payments causing outflows, which may stress liquidity without offsetting capital inflows.

Summary: LTC Properties has shown improved net income and earnings per share recently, supported by growing non-interest income streams. Consistent dividend payments and positive operating cash flow highlight stable operational fundamentals. However, declining total revenue, rising provisions for credit losses, and significant impairment and operating expenses underline challenges in cost management and asset quality. The company must continue balancing debt levels and capital expenditures with income growth to sustain financial health.