1 Green Flag and 1 Red Flag for LTC Properties
Senior housing has been at the center of the coronavirus storm from day one. LTC Properties (NYSE: LTC), with rents split roughly 60/40 between nursing homes and assisted-living facilities, has had its fair share of problems. But it has managed to muddle through without a dividend cut and is still supporting its quarterly payment through the first quarter of 2022, giving the shares a yield of 6.4% based on a recent stock price of about $35. As the real estate investment trust (REIT) gets ready to report full-year 2021 earnings, these are two things you need to look out for: one a potential red flag, the other a green one.
For investors, the biggest red flag that needs monitoring is probably LTC Properties' payout ratio. In the third quarter of 2021, the REIT was paying out roughly 100% of its funds available for distribution. That's a very troubling number, since it means LTC Properties doesn't have much breathing room if more things go wrong.
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Source Fool.com