LTC Properties offers 5.6% yield with growth potential as it shifts to higher-growth SHOP model.

LTC Properties is highlighted as a strong income and value investment, currently yielding 5.6% with a forward price-to-funds-from-operations (P/FFO) of 14.7x. The company is transitioning to a higher-growth SHOP model, aiming for 75% of net operating income (NOI) from SHOP by 2028 and expecting 15% SHOP NOI growth in 2026. While portfolio recycling and equity issuance temporarily limit funds from operations per share growth, these pressures should ease as SHOP investments expand. The investment case is supported by rising occupancy, favorable demographics, conservative leverage, and a valuation discount compared to peers, leading to a maintained "Buy" rating.