Cantor Sees Improving 2026 Backdrop for Equity REITs, Including LTC Properties, Inc. (LTC)

Core Viewpoint - LTC Properties, Inc. is recognized as one of the best monthly dividend stocks to buy, reflecting its appeal in the current market environment [1] Group 1: Market Performance and Analyst Insights - Cantor Fitzgerald has reduced its price target for LTC Properties from $37 to $36 while maintaining a Neutral rating, noting that US equity REITs delivered a 2.9% return in 2025, which lagged behind the S&P 500 [2] - The firm anticipates a more favorable environment in 2026, driven by an improving macro backdrop and increased M&A activity, while highlighting steady supply and demand dynamics and a well-covered dividend yield of approximately 4% [2] Group 2: Recent Acquisitions and Strategic Direction - On January 26, LTC announced a $108 million acquisition of a three-property portfolio in Atlanta, Georgia, which includes nearly 400 units of independent living, assisted living, and memory care, with an occupancy rate of 92% [3] - This acquisition aligns with LTC's strategy of combining high-quality real estate with experienced operators to foster long-term growth, with SHOP investments totaling $360 million in 2025 and 27% of LTC's gross investment now represented by SHOP [3][4] - The average age of SHOP properties is nine years, while the exposure to skilled nursing has decreased to 35% of gross investment, down from 46% at the end of 2024 [3] Group 3: Management Commentary - Chief Investment Officer Dave Boitano emphasized that the recent transaction sets a positive tone for 2026, indicating that the company is well-positioned to scale quickly and achieve sustained NOI growth by adding high-quality assets and strengthening relationships with operators like Arbor [4]