LTC Properties Affected by Genesis Healthcare Bankruptcy Filing

LTC Properties Inc. has been impacted by Genesis Healthcare's Chapter 11 bankruptcy filing, affecting six skilled nursing centers leased from LTC. The master lease, with three 5-year renewal options, generates significant revenue for LTC. Genesis has fulfilled rent obligations through July 2025, and LTC holds $4.7 million in security.

LTC Properties Inc. (NYSE: LTC), a real estate investment trust focused on seniors housing and healthcare properties, has been significantly impacted by the recent Chapter 11 bankruptcy filing of Genesis Healthcare, Inc. Genesis, one of the nation’s largest skilled nursing chains, operates six skilled nursing centers leased from LTC, totaling 782 beds [2]. The master lease between the two companies, which matures on April 30, 2026, provides three 5-year renewal options [2].

The bankruptcy filing of Genesis Healthcare has raised concerns for LTC Properties, as the master lease generates significant revenue for the company. As of March 31, 2025, annualized revenue and annualized contractual cash revenue from Genesis were $8.4 million and $9.5 million, respectively, representing 4.5% and 5.1% of LTC’s annualized revenue and annualized contractual cash revenue [2]. Despite the uncertainty, Genesis has fulfilled its contractual rent obligations through July 2025, and LTC holds $4.7 million in security from Genesis in the form of a letter of credit [2].

The bankruptcy process for Genesis Healthcare is ongoing, and the company has proposed a transaction involving a current affiliate that would result in the affiliate acquiring the company’s operations [1]. This proposed transaction is subject to higher bidding and court approval. The goal of this filing is to address the company's legacy debt structure and emerge as a stronger, healthier entity [1].

LTC Properties Inc. remains committed to its strategic initiatives, including the expansion of its Senior Housing Operating Portfolio (SHOP) platform, which is expected to contribute positively to its earnings performance [2]. The company has maintained dividend payments for 24 consecutive years, currently offering a 6.4% yield, reflecting its commitment to shareholder returns [2].

The impact of Genesis Healthcare's bankruptcy on LTC Properties Inc. is a developing story. As the bankruptcy proceedings unfold, investors and financial professionals should closely monitor the situation for updates. LTC Properties Inc. will continue to operate its portfolio of properties, including those leased to Genesis Healthcare, and will provide updates on the status of the lease agreements and any potential impacts on its financial performance.

References:
[1] https://www.mcknights.com/news/breaking-genesis-healthcare-files-for-bankruptcy-nearing-sale/
[2] https://www.investing.com/news/company-news/genesis-healthcare-files-for-chapter-11-bankruptcy-93CH-4130262