LTC Properties Is Selling Off Skilled Nursing Fast — and It’s Not Slowing Down

WESTLAKE VILLAGE, Calif. — LTC Properties is halfway through a self-described transformation, and skilled nursing is getting left behind.

The California-based real estate investment trust sold seven skilled nursing centers for $123 million in the fourth quarter of 2025, booking a $78 million gain in the process. On Wednesday’s earnings call, co-CEOs Pam Kessler and Clint Malin told analysts the company expects to pull another $266 million in proceeds from SNF dispositions and loan prepayments throughout 2026 — and that’s by design.

Two years ago, SNFs represented nearly half of LTC’s gross investments. As of Tuesday’s report, that figure has dropped to 37%. The goal is to get below 30% before the end of this year.

“We’ve generally seen that [skilled nursing] has a stroke-of-the-pen risk and things tend to happen when you least expect it,” Malin told analysts. “We see much more organic growth from investing in newer assets with a better growth profile.”

The company is reinvesting that capital into its senior housing operating portfolio — what the industry calls SHOP. By the end of 2026, LTC projects SHOP will make up 45% of its total portfolio and 40% of its net operating income. Kessler called it an unusually fast pivot.

“That’s really, really fast to change the complexion of a company,” she said.

One notable exit: a $180 million loan payoff from Prestige Healthcare expected this July. Once that closes, Prestige will drop off LTC’s top-five operator list entirely. The decision reflects a lesson learned years ago when a single state’s reimbursement changes caused significant “disruption” due to too much concentration in one operator.

The sell-off is happening at favorable prices. LTC is disposing of SNF assets at a blended cap rate of approximately 8.2%, which Malin called a “good risk-reward trade.”

Private capital has driven SNF prices up, making now an opportune window to sell, Malin added. LTC expects to sell five more skilled nursing properties and finalize additional $90 million in loan payoffs within the next 60 days.

The company currently holds 186 properties across 23 states. It remains on track to deploy $600 million in new investments this year — all targeted at SHOP.

“After this year, it’s an evolution,” Kessler said. “We see the opportunity for continued, accelerated, internal and external growth powered by SHOP in 2027.”

For skilled nursing operators, the REIT’s retreat reinforces a broader pattern: institutional capital is recalibrating away from the sector, betting that senior housing offers cleaner returns amid the regulatory uncertainty that has long shadowed SNF investment.