LTC Properties (LTC) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01We are dependent on our operators for revenue and cash flow
2. 02We and our operators are subject to risks associated with public health crises, including pandemics
3. 03The health care industry is heavily regulated by the government and changes in federal, state, or local law could impose negative costs and restrictions on us and our operators
4. 04Federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid could adversely affect us and the ability of our operators to make payments to us
5. 05Required regulatory approvals could delay operation of health care facilities
6. 06Failure to comply with federal, state, or local regulations could prohibit operation of health care facilities
7. 07Insurance coverage maintained by our operators could be inadequate to protect against contingencies
8. 08We rely on a few major operators
9. 09The extent and pace of inflation could adversely impact our operators’ net income and our results of operations
10. 10We may be unable to renew leases, or the terms of renewals or new leases could be less favorable than current leases
11. 11Operator financial or legal difficulties could delay or prevent collection of rent
12. 12Collateral securing mortgage loans could be insufficient
13. 13Our real estate investments could become impaired
14. 14Our real estate investments are relatively illiquid and could be difficult to sell for book value
15. 15Development and construction risks could affect the profitability and completion of properties
16. 16We may be unable to invest cash proceeds due to competition for health care properties
17. 17Our operators face competition providing seniors housing and health care services

Risks Related to Our Status as a REIT

1. 18Our failure to qualify as a REIT would have serious adverse consequences to our stockholders
2. 19distribution to stockholders would be significantly reduced for each of the years involved. In addition, we would no longer be required to make distributions to stockholders

Risks Related to Our Capital Structure

1. 20Limited access to capital could affect our growth
2. 21We could incur more debt
3. 22Covenants related to our indebtedness could limit our operations
4. 23An increase in market interest rates could increase our debt cost and impact our stock price
5. 24Ownership through partnerships and joint ventures could limit property performance

Risks Related to Our Stock

1. 25A failure to maintain or increase our dividend could reduce the market price of our common stock
2. 26Your ownership percentage in our common stock could be diluted
3. 27Provisions in our charter limit ownership of shares of our stock
4. 28Maryland law could increase the difficulty of acquiring us
5. 29We are dependent on key personnel
6. 30Our investments are concentrated in a single sector
7. 31Disruptions in the capital markets could affect the price of our common stock and our ability to obtain financing
8. 32Catastrophic weather and natural disasters could affect our properties
9. 33We could incur costs associated with hazardous substances and contamination
10. 34Information systems failures or data breaches could harm our business
11. 35Data privacy security failures or breaches could expose us to regulatory and other liability