Cash flow quality appears inconsistent as evidenced by the FFO/NI ratio swinging to 1.30 in 2026Q1, while dividend coverage remains under pressure with a payout ratio of 0.82 relative to AFFO.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 137.13M | 135.98M | 125.17M | 104.4M | 105.59M | 91.18M | 116.1M | 121.8M | 115.53M | 105.31M | 105.71M | 102.34M | 95.76M | 86.19M | 76.69M | 70.83M | 65.33M | 60.34M | 56.38M | 58.63M | 56.58M | 63.55M | 50.94M | 36.22M | 42.9M | 43.85M | 45.31M | 60.78M | 61.88M | 43.23M | 33.79M |
| Operating CF Growth % | 12.64% | 8.63% | 19.89% | -1.12% | 15.79% | -21.46% | -4.68% | 5.42% | 9.71% | -0.38% | 3.29% | 6.87% | 11.1% | 12.39% | 8.27% | 8.43% | 8.26% | 7.02% | -3.82% | 3.62% | -10.98% | 24.77% | 40.64% | -15.58% | -2.16% | -3.21% | -25.46% | -1.78% | 43.15% | 27.94% | 39.62% |
| Operating CF / Revenue % | 44.33% | 51.73% | 59.65% | 52.93% | 60.28% | 58.71% | 72.87% | 65.73% | 68.51% | 62.66% | 65.42% | 75.14% | 80.5% | 82.11% | 82.92% | 84.71% | 87.92% | 86.98% | 81.91% | 78.39% | 77.33% | 87.77% | 81.92% | 61.57% | 68.04% | 68.37% | 55.9% | 73.3% | 71.85% | 58.87% | 61.51% |
| Net Income | 120.89M | 123.88M | 94.88M | 91.46M | 100.58M | 55.86M | 95.68M | 80.14M | 155.08M | 87.34M | 85.11M | 73.08M | 73.4M | 57.81M | 51.33M | 49.44M | 46.05M | 44.36M | 42.98M | 47.76M | 78.79M | 52.71M | 36.39M | 24.32M | 31.8M | -2.91M | 31.64M | 31.83M | 50.59M | 35.76M | 22.54M |
| Depreciation & Amortization | 40.82M | 37.87M | 36.37M | 37.42M | 37.5M | 40.03M | 39.07M | 39.48M | 37.55M | 37.61M | 35.93M | 29.43M | 25.53M | 24.71M | 22.15M | 19.62M | 16.11M | 14.82M | 14.96M | 14.35M | 13.94M | 13.7M | 12.93M | 13M | 14.4M | 13.87M | 15.26M | 13.48M | 12.56M | 9.16M | 8.18M |
| Stock-Based Compensation | 7.08M | 9.33M | 9.05M | 8.48M | 7.96M | 7.76M | 7.01M | 0 | 5.87M | 5.25M | 4.28M | 4.01M | 3.25M | 2.59M | 1.82M | 1.47M | 1.28M | 1.39M | 1.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -24.49M | -25.82M | -3.58M | -18.06M | -36.47M | -7.35M | 22.68M | 8.99M | -8.14M | -6.6M | -9.63M | -7.06M | -1.33M | -3.19M | -1.5M | -2.05M | -2.59M | 1.63M | -2.23M | -3.9M | -36.86M | -7.66M | 1.32M | 3.99M | -1.21M | 34.27M | 11.25M | 14.17M | -2.46M | 3.97M | 3.07M |
| Working Capital Changes | -9.38M | -9.29M | -11.54M | -14.9M | -3.99M | -5.11M | -8.95M | -6.8M | -3.74M | -14.79M | -8.19M | 1.87M | -161K | 3.7M | 3M | 1.9M | 2.77M | 2.38M | -460K | 418K | 701K | 4.8M | 298K | -5.09M | -2.09M | -1.38M | -12.84M | 1.3M | 1.19M | -5.67M | 0 |
| Cash from Investing | -338.35M | -269.94M | 90.68M | -174.91M | -119.95M | -69.79M | 43.93M | -77.42M | -3.61M | -92.01M | -139.9M | -326.82M | -29.03M | -163.96M | -158.51M | -97.39M | -87.38M | -9.07M | 4.96M | 26.56M | 59.57M | -50.42M | 2.74M | 20.71M | 19.32M | 46.77M | 45.7M | -48.16M | -51.53M | -150.8M | -94.21M |
| Acquisitions (Net) | -740K | 0 | 0 | 0 | 50K | 0 | 9.33M | 965K | -670K | -3.85M | -1.77M | -23.04M | 0 | 0 | 0 | 97.39M | 4.86M | 0 | 0 | 322K | 54.03M | 605K | -6.77M | 15.66M | -1.42M | -1.69M | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -116.2M | 0 | 0 | 0 | -191.59M | 0 | -45.13M | -100.72M | -97.84M | -121.51M | -157.44M | -324.8M | 0 | 0 | 0 | -232K | -1.69M | -221K | 0 | -52K | -1.49M | -14.02M | 4.73M | -2.02M | -26K | -2.91M | 0 | -13.1M | 0 | 0 | 0 |
| Sale of Investments | 62.4M | 0 | 0 | 0 | 80.64M | 0 | 96.33M | 25.18M | 98.73M | 33.3M | 25.75M | 6.34M | 33.59M | 11M | 6.5M | 6.7M | 1.57M | 671K | 463K | 1.14M | 6.14M | 15.22M | 12.28M | 281K | 12.09M | 41.93M | 0 | 13.1M | 0 | 1.01M | 86.7M |
| Other Investing | -281.15M | -269.94M | 90.68M | -174.91M | -50K | -69.79M | -16.24M | 0 | -1.69M | -87.26M | -136.72M | -302.95M | -61.12M | -174.96M | -165.01M | -97.39M | 8.3M | 7.47M | 9.86M | 36.89M | 20.57M | 16.13M | 18.65M | 11.95M | 10.1M | 11.13M | 50.95M | -4.93M | 138.59M | 70.56M | 13.81M |
| Cash from Financing | 199.59M | 138.94M | -226.72M | 80.42M | 19.58M | -24.01M | -156.5M | -44.91M | -112.38M | -16.07M | 29.24M | 212.18M | -48.27M | 77.35M | 84.61M | 24.06M | 20.1M | -63.54M | -82.85M | -72.44M | -89.83M | -13.88M | -67.28M | -47.01M | -60.54M | -86.17M | -91.79M | -11.48M | -13.83M | 109.4M | 62.13M |
| Dividends Paid | -109.31M | -107.39M | -100.53M | -94.76M | -91.51M | -90.49M | -90.26M | -90.9M | -90.37M | -90.22M | -84.57M | -76.77M | -74.43M | -66.9M | -57.78M | -56.57M | -53.9M | -51.37M | -52.1M | -51.98M | -50.91M | -46.42M | -38.5M | -26.76M | -23.2M | -14.26M | -37.79M | -57.71M | -54.52M | -46.41M | -24.67M |
| Common Dividends | -80.14M | -107.39M | -100.53M | -94.76M | -91.51M | -90.49M | -90.26M | 0 | -90.37M | -90.22M | -84.57M | -76.77M | -74.43M | -66.9M | -57.78M | -56.57M | -53.9M | -51.37M | -51.79M | -51.98M | -50.91M | -46.42M | -38.5M | -26.76M | -23.2M | -14.26M | -37.79M | -57.7M | -54.5M | -46.41M | -24.67M |
| Debt Issuance (Net) | 2M | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | 0 | -5.21M | 0 | 0 | 0 | -3.57M | -18.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -88.41M | -59.06M | -2.02M | 0 | -18.77M | -1.48M | -3.3M | -126.31M | -3.44M | -2.33M | -42.05M | -7.97M | -7M | -3.3M | 0 | -1.83M |
| Other Financing | 28.16M | 92.53M | -1.54M | -1.69M | -3.01M | -3.78M | -4.07M | -2.36M | -342K | 1.34M | -2.22M | -2.38M | -1.28M | -6.91M | -2.34M | -2.36M | -746K | 430K | -1.25M | -182K | -39.44M | 5.13M | -167.17M | -24.26M | 12.96M | 21.07M | -2.62M | 30.32M | -38.63M | -3.06M | 88.6M |
| Net Change in Cash | -1.63M | 4.97M | -10.87M | 9.91M | 5.22M | -2.61M | 3.53M | -520K | -449K | -2.78M | -4.95M | -12.29M | 18.46M | -413K | 2.78M | -2.5M | -1.95M | -12.26M | -21.51M | 12.74M | 26.32M | -746K | -13.6M | 9.92M | 1.68M | 4.45M | -785K | 1.15M | -3.47M | 1.83M | 1.71M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 14.39M | 9.41M | 20.29M | 10.38M | 5.16M | 7.77M | 4.24M | 4.76M | 5.21M | 7.99M | 12.94M | 25.24M | 6.78M | 7.19M | 4.41M | 6.9M | 8.86M | 21.12M | 42.63M | 29.89M | 3.57M | 4.32M | 17.92M | 8M | 6.32M | 1.87M | 2.65M | 1.5M | 4.97M | 3.15M | 1.43M |
| Cash at End | 21.67M | 14.39M | 9.41M | 20.29M | 10.38M | 5.16M | 7.77M | 4.24M | 4.76M | 5.21M | 7.99M | 12.94M | 25.24M | 6.78M | 7.19M | 4.41M | 6.9M | 8.86M | 21.12M | 42.63M | 29.89M | 3.57M | 4.32M | 17.92M | 8M | 6.32M | 1.87M | 2.65M | 1.5M | 4.97M | 3.15M |
| Free Cash Flow | 134.46M | 135.98M | 125.17M | 104.4M | 96.59M | 91.18M | 115.75M | 118.96M | 114.29M | 104.4M | 104.3M | 101.51M | 94.26M | 86.19M | 76.69M | -33.02M | -35.1M | 43.36M | 51.02M | 46.89M | 36.89M | -4.8M | 24.78M | 31.04M | 41.48M | 42.16M | 40.05M | 17.56M | -128.24M | -179.15M | -160.94M |
| FCF Growth % | 0.59% | 8.63% | 19.89% | 8.09% | 5.93% | -21.22% | -2.7% | 4.09% | 9.47% | 0.09% | 2.74% | 7.7% | 9.35% | 12.39% | 332.25% | 5.92% | -180.96% | -15.01% | 8.8% | 27.11% | 868.38% | -119.37% | -20.18% | -25.16% | -1.62% | 5.26% | 128.08% | 113.7% | 28.42% | -11.32% | -20217% |
| FCF / Revenue % | 43.46% | 51.73% | 59.65% | 52.93% | 55.15% | 58.71% | 72.64% | 64.2% | 67.77% | 62.12% | 64.55% | 74.53% | 79.23% | 82.11% | 82.92% | -39.49% | -47.24% | 62.49% | 74.11% | 62.7% | 50.42% | -6.63% | 39.85% | 52.77% | 65.78% | 65.74% | 49.42% | 21.18% | -148.88% | -243.96% | -292.98% |
Operator credit and reimbursement
As reported in recent financial filings, the dividend payout ratio relative to AFFO reached 0.82 in 2026Q1, indicating that while the distribution remains covered, the margin of safety has narrowed significantly compared to historical periods where the company maintained more robust cash flow buffers for shareholders.
The reliance on AFFO to sustain monthly dividends appears increasingly precarious given the volatility observed in recent quarters. Investors should monitor whether the current payout level forces management to prioritize dividend maintenance over necessary capital reinvestment in the aging healthcare portfolio.
Based on the provided quarterly data, the relationship between FFO and GAAP operating cash flow shows significant inconsistency, with FFO/NI ratios fluctuating wildly from -1.92 in 2025Q3 to 1.30 in 2026Q1, suggesting that non-cash accounting adjustments are heavily distorting the company's reported earnings performance.
This divergence implies that FFO may not be a reliable proxy for actual liquidity during periods of operational stress. The volatility in these metrics warrants further investigation into whether the company is recognizing revenue that has not yet been realized in cash form.
According to the cash flow statements, LTC reported minimal maintenance capital expenditures, with only $2.7 million in 2026Q1 and $3.6 million in 2024Q4, which reflects the triple-net lease structure where tenants are contractually obligated to fund the majority of property-level improvements and recurring maintenance costs.
While this structure protects the REIT from direct operational cost inflation, it also limits the company's ability to influence property quality directly. If tenants face financial distress, the lack of direct capital investment may lead to deferred maintenance that eventually impairs the long-term value of the underlying assets.
Analysis of the cash flow statement reveals that the company's reported FCF is frequently bolstered by the absence of significant capital outflows, yet this may mask underlying credit deterioration within the mortgage and mezzanine loan portfolio that is not immediately visible in standard operating cash flow metrics.
The lack of transparency regarding potential loan loss provisions and the impact of rent restructurings suggests that the reported cash flow may overstate the true economic health of the portfolio. Investors should be wary of the potential for future cash flow impairment if regional operators continue to struggle with reimbursement pressures.
Quick answers to the most common questions about buying LTC stock.
LTC Properties, Inc. (LTC) generated $136.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LTC Properties, Inc. (LTC) generated $136.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
LTC Properties, Inc. (LTC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, LTC Properties, Inc. (LTC) returned $107.4M to shareholders via cash dividends and spent $5.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.