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Rendite Rudin
@RenditeRudin
7Mo·

Realty Income First Quarter Earnings

24
16 Commentaires
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AktienRob88@AktienRob88
7Mo
104 shares at a purchase price of €49.84
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Rendite Rudin@RenditeRudin
7Mo
@AktienRob88 Very nice! Are you buying for the long term?
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AktienRob88@AktienRob88
7Mo
No the position is currently full, I would still like to increase my position at $LTC if the price falls below €30 I would buy here again
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Rendite Rudin@RenditeRudin
7Mo
@AktienRob88 Okay, I'll have to take a closer look. Thanks for the Input👍🏼
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Smudo@Smudeo
7Mo
I put them in my portfolio some time ago at 47 euros, then came the interest rate fantasies of falling % in the USA which did not materialize. I bought more this year at 47 euros. Position is full, share remains stable in a range of 49-52 euros. Wait until the 3rd FED meeting to see what the share price will do if interest rates fall.
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Rendite Rudin@RenditeRudin
7Mo
@Smudeo Is a very stable share + the dividends are of course very interesting! Plus the interest rate policy has its influence, but I assume that the USA will not lower its interest rate tomorrow...
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Smudo@Smudeo
7Mo
@RenditeRudin no only 2 or 3 sessions later.
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BockaufDividenden@BockaufDividenden
7Mo
I also had a look here and there for monthly payers and came across $LTC. I just asked ChatGPT with Deepsearch for a quick analysis:

4th LTC Properties Inc (monthly payers)
Criterion assessment

Balance sheet quality
Above-average level of debt: Debt ratios around 1.6×EK. Weak equity base. Ratings in the higher 2000s at BBB, currently low in the junk range. Criticism from analysts due to excessively rapid growth in difficult markets. Interest rate hurdle burdens profit.

Dividend stability
Coverage very low: payout ratio ~110 % fullratio.com
(with 2023 figures). Cuts most recently in 2020 (Covid) by 25%, currently only slight increases. Monthly dividend $0.19 (USD 2.28 p.a.) pays ~6.6% yield
fullratio.com
- nominally attractive, but probably not sustainable in the long term.

Business model risk
Highly cyclical in healthcare: Focus on nursing homes/hospitals/elderly homes, which are sensitive to regulation and epidemics. Corona and Medicare decline hit LTC. Demographics favor senior housing in the medium to long term, but operational risks (vacancies, cost pressure) remain high.

Distribution security
Questionable: NAF (Funds Available for Distribution) barely covers dividend payments. Payout >100%, i.e. capital inflows must be notionally replenished
fullratio.com
. Rated as high-risk: Dividend probably only sustainable with stable interest rates, at risk in the event of headwinds.

Valuation
Dividend yield ~6.6 % (CASH: 2.28/35), seems tempting. Share price currently at annual high (~36 USD). Market seems to have priced in supply chain and interest rate problems, but LTC is still expensive for quality by historical standards. No clear "discount" valuation due to balance sheet problems.

Comparison with depot
Higher risk than any portfolio asset. ARCC/HTGC have higher yields, but these BDCs at least have better credit portfolios (e.g. ARCC BBB). LTC is more "exotic" healthcare REIT, a far cry from O or MAIN.

Final valuation & alternatives
Speculative: LTC currently has a high cash yield, but extreme balance sheet risks. Rather dispensable in a long-term portfolio. Alternatives: For monthly returns in the healthcare sector, Omega Healthcare (OHI) is a better known option (investing in nursing homes with healthier metrics, also monthly). Or switch to other stable sectors: e.g. PS Business Parks (PSB) pays every month (~3% yield) in the commercial sector with an investment grade rating.


What do you think about the REIT? Doesn't sound so good at first, I've often read that they have far too much debt.
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AktienRob88@AktienRob88
7Mo
@BockaufDividenden have summarized Q1 2025 for you : In the first quarter of 2025, LTC Properties (NYSE: LTC) reported mixed results reflecting both challenges and progress. Here are the key points:

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📊 Key financials (Q1 2025)
- Total revenue: $49.0m, a decrease of 4.5% compared to $51.4m in the previous year.
- Net income: $20.5m (EPS: $0.45), compared to $24.1m (EPS: $0.56) in the previous year. 
- Funds From Operations (FFO): $29.5m (FFO per share: $0.65), slightly below the previous year's $29.9m (FFO per share: $0.69). 
- Core FFO: $29.9m (per share: $0.65), an increase on $27.5m (per share: $0.64) in the previous year. 
- Funds available for distribution (FAD): $34.7 million, compared to $31.3 million in the previous year. 

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🏢 Strategic developments
- Portfolio restructuring: 12 properties were transferred to the new senior housing portfolio (SHOP) under the RIDEA structure, opening up new opportunities for value creation. 
- Disposals: Two non-income producing assisted living facilities were sold for a total of $1.67 million. 
- Financial transactions: $4.5 million was borrowed under the unsecured revolving credit facility; $7.0 million of senior unsecured notes were repaid. 
- Share issue: 238,100 ordinary shares were sold, generating $8.5 million in net proceeds. 

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💰 Dividend
- Monthly dividend: $0.19 per share (annualized $2.28), which corresponds to a dividend yield of around 6.5%. 

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📈 Financial position
- Total assets: $2.07 billion as at March 31, 2025 
- Total debt: $682.2m, with a debt-to-income value ratio of 28.7%. 
- Cash and short-term investments: $9.4m, indicating a reliance on operating cash flow to repay debt. 

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📌 Conclusion

LTC Properties shows a stable operating performance in the first quarter of 2025, especially in the area of core FFO. The restructuring of the portfolio under the RIDEA structure and the strategic disposals indicate a proactive adaptation to market conditions. Nevertheless, challenges remain, particularly in terms of declining income and limited liquidity


I'm sticking with it and bought in today at below €29.80, I see more opportunities than risks here in the long term and I also like the 7% dividend.
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AktienRob88@AktienRob88
7Mo
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BockaufDividenden@BockaufDividenden
7Mo
@AktienRob88 If you feel comfortable with it, then go ahead and buy it! :) I'm still watching from the sidelines
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portfolio_prophet_mvktb@portfolio_prophet_mvktb
7Mo
One of my favorites 😄👍🏻👏🏻👏🏻
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Rendite Rudin@RenditeRudin
7Mo
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Tom@Laeuft
7Mo
Yup, one of my first dividend stocks. Although I'm still in the red, I'm quite relaxed thanks to the high monthly dividend🍻
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Rendite Rudin@RenditeRudin
7Mo
@Tom_laeuft Very nice! Is a good longterm value, especially the steady dividend increase plays even more into the cards here. Continued success with your investment🤝
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Tom@Laeuft
7Mo
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