LTC Properties (LTC) is a healthcare REIT operating under a triple-net lease and mortgage lending model, with a nascent SHOP (Senior Housing Operating Properties) segment added during 2025. As of March 31, 2026, total GAAP assets are $2.10B against total liabilities of $919M, yielding GAAP book equity of $1.18B including noncontrolling interests. Under a liquidation lens, recovery to equity is deeply negative, consistent with the MFFAIS CLV/LLV/OLV of approximately -$848M. The primary driver of this deficit is the standard REIT asymmetry: real estate PP&E of $1.72B gross ($1.30B net of $421M accumulated depreciation) is subject to a 50-70% recovery haircut in liquidation, while the $867M debt stack remains at face value. Applying a 60% midpoint recovery to the net PP&E base ($1.30B x 60% = $780M), combined with near-full recovery on cash ($22M), mortgage loans net ($389M x ~85% = $331M given credit risk inherent in the healthcare operator pool), and financing receivables ($26M net), aggregate asset recovery approximates $1.15-1.25B before transaction friction. Against $919M of liabilities at face value plus liquidation costs, residual to equity is modestly positive to marginally negative depending on PP&E realizations — but this overstates recovery because the $389M mortgage loan book and $26M financing receivable book carry idiosyncratic healthcare operator credit risk, and the $17.6M straight-line rent receivable carries zero liquidation value. The MFFAIS estimate of -$848M likely reflects deeper haircuts or inclusion of estimated wind-down costs. Compared to the prior 10-K (December 31, 2025), total debt increased from approximately $833M to $867M, driven by net revolving credit draws of $30M and the addition of $200M in term loans established in late 2025. The revolving credit outstanding of $283M as of March 31, 2026 was subsequently reduced by $56M after quarter-end. Interest expense has trended up to $10.8M/quarter from $7.9M/quarter a year prior, reflecting higher average debt balances. The $26.1M finite-lived intangible assets (above-market leases and in-place leases associated with SHOP acquisitions) warrant a zero recovery haircut. The $23.3M accrued interest receivable on financing receivables is similarly impaired in a stress scenario. The company reports the financing receivable book partially stems from a Prestige loan amendment involving a $41.5M effective interest write-off in Q3 2025, a residual credit quality signal. No goodwill on balance sheet; no pension obligations disclosed. Interest rate swap portfolio ($250M notional, aggregate fair value asset of $1.6M) carries near-zero liquidation value. Filing discusses the SHOP segment operating cost structure in MD&A but does not separately tag SHOP-specific PP&E or revenue in XBRL at this stage.
▼ Community Notes