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Wednesday, 03/27/2002

LTC - LTC Properties

Company Description

LTC Properties, Inc., a healthcare real estate investment trust (a REIT), was organized in May 1992 and commenced operations in August 1992. The Company invests primarily in long-term care and other healthcare-related facilities through mortgage loans, facility lease transactions and other investments. During 1998, the Company began making investments in the education industry by investing in private and charter schools from pre-school through eighth grade.

Skilled-nursing facilities provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute-care hospitals. Many skilled-nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as provide sub-acute care services that are paid either by the patient, the patient's family, or through federal Medicare or state Medicaid programs.

As part of its strategy of making long-term investments in properties used in the provision of long-term healthcare services, the Company provides mortgage financing on such properties based on its established investment underwriting criteria. The Company also provides construction loans that by their terms convert into purchase/lease transactions or permanent financing mortgage loans upon completion of construction.

(Source: LTC Properties)

Reasons To Invest

The reduction in Medicare reimbursement rates several years ago adversely impacted many service providers in the health care industry. Large bankruptcies in the nursing home business, for instance, were followed by a retrenchment in the broader business. Recently, however, business conditions have improved. That has begun to trickle down to LTC Properties.

Moving through the retraction in the health care industry, LTC Properties suffered blows from defaults on debt and declining revenues. But the rebound in the health care industry is catching up with this operator of health care properties.

The company emerged from its downturn as a leaner, meaner operation with strategic asset sales and reductions in debt load. The rebounding prospects of the company and its cash flow has been increased by recent insider buying. For more than a year, insiders have been steadily accumulating shares in and out of the open market. Recent filings revealed a total of 43,300 shares purchased by insiders since the beginning of the year. Individual investors are smart to invest along with management.

A turnaround in revenues and profits would have this stock trading at a deep discount, well off its all time high around $20. There's plenty of upside potential with limited risk and the dividend is big.

DRIP Information:
Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment = No          Temper Enrollment Serv:  Yes

Min/Max Investment = $25 to $1,000/month

Reinvestment Fees -

Div : 0 
Cash: 0
Auto: N/A

Transfer Agent:

Investor Services


Industry Group: Medical Products  52-week high=$7.99
Annual Dividend Per Share=  0.40  52-week low =$3.55
Last earnings 01/18   est = 0.25  actual = 0.31
Next earnings 04-18   est = 0.25  versus = 0.25
                                    P/E =   N/A
Analyst Ratings:
Strong Buy    = 1
Moderate Buy  = 0
Hold          = 1
Moderate Sell = 0
Strong Sell   = 0


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