LTC Properties (NYSE: LTC) is approaching $1 billion in senior housing acquisitions in 2026, with leaders betting that pricing power and a widening operator network will support the company’s next phase of growth.
Leaders with the Westlake Village, California-based real estate investment trust (REIT) have worked this year to grow the company’s senior housing operating portfolio (SHOP) to 50 communities managed by 14 senior living operators. Through October, LTC closed approximately $950 million in SHOP acquisitions, surpassing its previous $900 million midpoint acquisition target set earlier this year.
This quick acquisition pace is directly aimed at increasing the company’s position to generate stronger growth over time, as the company expects SHOP to represent 50% of pro forma annualized net operating income (NOI) by the end of this year, with a runway to get up to 75% by the end of 2028, leaders shared during Wednesday’s third-quarter earnings call.
“What we’re buying is future growth,” said LTC Co-President and Co-CEO Pam Kessler during the earnings call’s question-and-answer session. “We’re not spread investing at this point.”
LTC expects $200 million in SHOP acquisitions to close in the first quarter of 2027, and close the year with $1 billion in SHOP acquisitions for the remainder of 2026. This means that LTC has been able to build a SHOP portfolio from scratch into a “$1.6 billion portfolio over 19 months,” Co-President and Co-CEO Clint Malin, who called the growth “historic.”
“Transformation is no longer a future objective. It is happening now, and LTC is entering a new chapter of growth, scale, and value creation,” Malin said.
LTC has closed on less than 5% of the deal volume it reviewed to date in 2026, focusing on smaller transactions involving one or two communities rather than large portfolio acquisitions. Malin said recent acquisitions carried projected first-year capitalization rates around 6.5%, reflecting some compression.
“The capital markets are not constraining growth; it’s the opportunity set, and I think we’re getting our fair share at a billion dollars this year,” Kessler said, noting that the company’s growth is “very selective” and will remain that way in 2027.
Community size, age and unit configuration remain important factors for LTC leaders in acquiring communities that can compete against future development, alongside operator relationships that help identify opportunities for future acquisitions, Malin said.
“If something doesn’t fit, we’ll tell them it doesn’t work,” said Executive Vice President and Chief Investment Officer Dave Boitano. “If something does work, we’re going to lean in hard.”
While acquisitions are accelerating, LTC leaders trimmed core SHOP NOI guidance midpoint by $500,000 to $54.5 million, within a revised range of $53.5 million to $55.5 million. The adjustment comes from Medicaid reimbursement reductions impacting two standalone memory care communities alongside changes in resident care needs and occupied unit mix.
The company’s 27-community core senior living portfolio includes 12 standalone memory care properties, compared to 14 across the company’s broader 50-community SHOP segment. The concentration contributes to quarterly variability and impacts direct comparisons with peer REITs, leaders said on Wednesday. Excluding the two communities affected by the Medicaid rate reduction, Medicaid represents approximately 3% of SHOP revenue for LTC.
LTC operators have been able to implement “strong rate increases,” and the company expects that to continue next year, according to Executive Vice President of Asset Management Gibson Satterwhite.
Looking at 2027, operators are discussing mid- to high-single-digit increases in blended rent and care charges for existing private-pay residents, Satterwhite said.
During Wednesday’s earnings call, Satterwhite noted that staffing conditions appear to be manageable headed into the end of the year, with operating partners discussing cost-of-living increases rather than facing wage pressure.
LTC’s SHOP growth plan rests on revenue per occupied room (RevPOR) growth exceeding expenses by 200 basis points, and executives believe the spread could support future growth. In the third quarter, LTC reported funds from operations of 71 cents per share, compared to 69 cents per share in 2025.
On Wednesday, the LTC stock price rose 1.21%, an increase of $0.56, to rest at $46.33 per share.
