LTC Properties (LTC) is expected to benefit more directly from Senior Housing Operating Portfolio, or SHOP, tailwinds as it accelerates its investment strategy through capital recycling, RBC Capital Markets said in a Friday note.
RBC expects LTC's SHOP concentration to increase to about 50% by year-end 2026, 60% by year-end 2027 and 70% by year-end 2028.
The company is generally acquiring newer construction, larger communities in primary markets, with properties averaging about nine years old.
LTC expects to complete about $900 million of investments in 2026, while expecting to sell about $730 million of assets in 2026 at a 7.3% yield.
The firm models core earnings growth of 1.2% in 2026, 4.2% in 2027 and 9.2% in 2028.
RBC raised its rating on LTC Properties to Outperform from Sector Perform and raised its price target to $45 from $41.
Shares of the company were 3.6% higher in Friday trading.
Price: $40.40, Change: $+1.43, Percent Change: +3.67%