Genesis Chapter 11 Puts Portion of LTC Properties’ Rent at Stake

Rhea-AI Filing Summary

LTC Properties, Inc. (NYSE: LTC) has disclosed that one of its skilled-nursing operators, Genesis Healthcare, Inc., filed for Chapter 11 bankruptcy protection on July 9, 2025. Genesis currently leases six skilled nursing centers—five in New Mexico and one in Alabama—covering a total of 782 beds under a master lease with LTC.

Lease details: the master lease was due to expire on April 30, 2026; however, on June 3, 2025 Genesis exercised the first of three available five-year extension options, which would push the maturity to April 30, 2031.

Financial exposure: for the quarter ended March 31, 2025 Genesis contributed $8.4 million of annualized revenue (4.5% of LTC’s total) and $9.5 million of annualized contractual cash revenue (5.1% of the total). Genesis has paid rent through July 2025, and LTC holds a $4.7 million letter-of-credit security deposit.

Implications: Although Genesis’ contribution represents a mid-single-digit percentage of LTC’s revenue base, the bankruptcy introduces potential collection risk beyond July 2025. The existing security deposit and the operator’s recent decision to extend the lease provide limited mitigation and suggest Genesis intends to continue operations within the portfolio, but future rent receipts could still be delayed or modified by bankruptcy proceedings.

Positive

• $4.7 million letter of credit provides collateral that can offset several months of potential missed rent.
• Genesis paid all contractual rent through July 2025, indicating near-term compliance.
• Operator exercised a five-year lease extension, suggesting commitment to the facilities.

Negative

• Genesis Healthcare’s Chapter 11 filing places 4.5% of LTC’s annualized revenue at risk.
• Future rent collections could be delayed or renegotiated by bankruptcy court, impacting cash flow.

Insights

REIT Equity Analyst

TL;DR – Genesis bankruptcy is a modest negative for LTC; 5% revenue at risk but partly secured by $4.7 m LOC.

The filing informs investors that Genesis Healthcare, an LTC tenant, has entered Chapter 11. Genesis represents 4.5% of LTC’s annualized revenue—significant, yet not large enough to threaten overall liquidity. Rent is current through July 2025, and LTC holds a $4.7 million letter of credit, equating to roughly six months of rent coverage. Genesis’ exercise of a five-year renewal option one month prior to bankruptcy signals an intent to retain the properties, which could facilitate lease assumption in court. Nonetheless, bankruptcy courts can approve rent concessions or rejections, so there is downside risk to cash flow beginning in August 2025. Given LTC’s diversified tenant base and security deposit, I view the event as moderately negative but not transformative.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20459

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report:  July 9, 2025

(Date of earliest event reported)

LTC PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)

Maryland		1-11314		71-0720518
(State or other jurisdiction of		(Commission file number)		(I.R.S. Employer
incorporation or organization)				Identification No)

3011 Townsgate Road, Suite 220

Westlake Village, CA 91361

(Address of principal executive offices)

(805) 981-8655

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common stock, $.01 par value		LTC		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Item 8.01. —Other Events

On July 10, 2025, LTC Properties, Inc. (the “Company” or “LTC”) announced an update on one of its operators. The text of the press release is furnished herewith as Exhibits 99.1 and is specifically incorporated by reference herein 

On July 9, 2025, Genesis Healthcare, Inc. (“Genesis”) filed for Chapter 11 bankruptcy.

As of July 9, 2025, affiliates of Genesis lease six skilled nursing centers in New Mexico (five) and Alabama (one) with a total of 782 beds under a master lease with LTC. The master lease matures on April 30, 2026 and provides three 5-year renewal options. On June 3, 2025, LTC received Genesis’ written notice of its exercise of a 5-year extension option, which would extend the term of the lease to April 30, 2031. 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, respectively, as of March 31, 2025. Genesis has paid their contractual rent through July 2025. LTC holds $4.7 million of security from Genesis as required by the master lease in a letter of credit.

Item 9.01 - Financials Statements and Exhibits

99.1 Press Release issued July 10, 2025

104 Cover Page Interactive Data File. Formatted in Inline XBRL and contained in exhibit 101.

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	LTC PROPERTIES, INC.
Dated: July 10, 2025	By:	/s/ CAROLINE CHIKHALE
		Caroline Chikhale
		Executive Vice President, Chief Financial Officer and Treasurer

FAQ

How much of LTC Properties’ revenue comes from Genesis Healthcare?

Genesis contributed $8.4 million, or 4.5% of LTC’s annualized revenue as of March 31 2025.

What security does LTC have against potential rent default by Genesis?

LTC holds a $4.7 million letter of credit required under the master lease.

Has Genesis paid its rent up to the bankruptcy filing?

Yes. Genesis has paid contractual rent through July 2025.

When does the Genesis master lease now expire?

After exercising a five-year option on June 3 2025, the lease would run until April 30 2031.

How many facilities does Genesis lease from LTC and where are they located?

Genesis leases six skilled nursing centers: five in New Mexico and one in Alabama, totaling 782 beds.