LTC's Big Move: $108 Million Bet on Senior Housing

LTC Properties, a company that invests in places for seniors to live and get healthcare, just spent $108 million on three properties in Atlanta. These places offer different levels of care, from independent living to memory care, and they're almost full, with 92% of the nearly 400 units occupied. The buildings are pretty new, built between 2014 and 2018, and they're run by a company called The Arbor Company, which LTC already works with. This deal is part of LTC's bigger plan to put more money into senior housing. They're calling it their SHOP portfolio, and it's growing fast. In 2025, they spent $360 million on similar deals, and now, in 2026, they've already spent another $108 million. This makes senior housing 27% of their total investments, up from nothing just a year ago. Meanwhile, their investments in skilled nursing facilities are going down, now making up 35% of their portfolio, down from 46% at the end of 2024.LTC thinks this is a smart move. They say these new properties are high-quality and will bring in good returns. They expect to make a lot of money from them, with a year-one yield of about 7% and a long-term return in the low teens. They're paying for this deal with money from a revolving line of credit. But it's not all smooth sailing. LTC has to deal with risks like changes in laws, problems with the companies that run the properties, and the ups and downs of the healthcare industry. They also have to make sure they keep qualifying as a real estate investment trust, or REIT, which gives them certain tax benefits. If they can't do that, it could be a big problem.