LTC Strengthens Capital Structure With Expanded $800 Million Credit Facility and New Term Loans
LTC Properties, Inc., a real estate investment trust focused on investing primarily in seniors housing and health care properties, has announced a significant enhancement to its capital structure. The Company revealed that it has increased total commitments under its revolving credit facility to $800 million and completed $200 million in new term loans, reinforcing its financial flexibility and positioning the platform for continued growth.
The expanded financing arrangements reflect LTC’s proactive approach to balance sheet management as it advances its strategic objectives within the seniors housing and health care real estate sector. By securing additional committed capital and extending debt maturities at fixed interest rates, the Company has strengthened its ability to pursue external growth opportunities while maintaining prudent financial discipline.
Expansion of Credit Facility Commitments
LTC entered into an amendment to its existing Credit Agreement dated July 21, 2025, exercising the accordion feature included in the agreement. Through this amendment, the aggregate commitment from the Company’s lending group was increased by $200 million, bringing the total available credit facility to $800 million.
Importantly, aside from the increase in total commitments, all other material terms of the Credit Agreement remain unchanged. This expansion provides LTC with increased liquidity and flexibility to support acquisitions, investments, redevelopment opportunities, and general corporate purposes, while preserving the structure and covenants that have supported the Company’s financial stability.
The expanded facility underscores the confidence of LTC’s banking partners in the Company’s operating strategy, asset quality, and long-term outlook within the seniors housing and health care real estate markets.
Establishment of $200 Million in Term Loans
In addition to expanding its revolving credit capacity, LTC also established $200 million in term loans as part of the overall transaction. The Company structured these borrowings across multiple maturities, providing a balanced debt ladder and reducing refinancing risk over time.
To manage exposure to interest rate volatility, LTC entered into interest rate swap agreements that effectively fix the interest rates on each of the term loans. The resulting structure provides cost certainty and aligns well with the long-term nature of the Company’s real estate investments.
The term loan portfolio includes:
- A $50 million three-year term loan maturing in 2028 with an effective fixed interest rate of 4.61% per year
- A $55 million four-year term loan maturing in 2029 with an effective fixed interest rate of 4.65% per year
- A $55 million five-year term loan maturing in 2030 with an effective fixed interest rate of 4.70% per year
- A $40 million seven-year term loan maturing in 2032 with an effective fixed interest rate of 5.22% per year
This staggered maturity schedule supports LTC’s long-term capital planning by spreading repayment obligations over several years and locking in attractive fixed borrowing costs in the current interest rate environment.
Supporting Growth and Portfolio Advancement
The expanded credit facility and new term loans are designed to enhance LTC’s capacity to execute on its growth strategy, particularly as the Company continues to evolve and strengthen its seniors housing operating portfolio (SHOP) and broader investment platform.
According to LTC, the Company made substantial progress in elevating the performance of its SHOP portfolio during 2025. These improvements have positioned the platform for additional growth opportunities as demand for seniors housing and health care services continues to increase due to demographic trends and aging population dynamics.
By reinforcing its capital structure, LTC has created additional flexibility to pursue acquisitions, fund development and redevelopment projects, and selectively invest in assets that align with its long-term strategic priorities.
Leadership Perspective
Commenting on the transaction, Cece Chikhale, Chief Financial Officer of LTC Properties, emphasized the strategic importance of the financing actions.
“Strengthening our capital structure provides LTC with an enhanced ability to successfully execute on our external growth initiatives,” said Chikhale. “We made tremendous progress elevating our SHOP portfolio in 2025, and we are focused on driving even more growth throughout 2026.”
Her remarks highlight the Company’s forward-looking approach and its intention to leverage the improved balance sheet to support continued expansion while maintaining financial discipline.
Transparency and Regulatory Disclosure
LTC has provided additional details regarding the credit facility expansion and term loan transactions, including information about the participating bank group, in a Form 8-K filed with the Securities and Exchange Commission on December 15, 2025.
The filing reflects the Company’s commitment to transparency and regulatory compliance, ensuring that investors and stakeholders have access to comprehensive information about its financing activities.
Positioning for the Future
With increased committed capital, a diversified maturity profile, and fixed-rate debt protection, LTC is well positioned to navigate evolving market conditions and capitalize on opportunities within the seniors housing and health care real estate sectors. The strengthened capital structure supports both near-term execution and long-term value creation, reinforcing LTC’s ability to deliver sustainable growth for shareholders while continuing to invest in essential real estate assets that serve an aging population.
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