LTC Reports 2025 Fourth Quarter Results and Introduces 2026 Guidance

WESTLAKE VILLAGE, Calif.--( BUSINESS WIRE)--LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for the fourth quarter ended December 31, 2025.

“Our strategic shift toward SHOP is delivering higher growth and fundamentally reshaping our long‑term earnings profile,” said Pam Kessler, LTC’s Co-CEO. “With a more resilient portfolio consisting of newer assets and a focused approach to capital allocation, we ended 2025 with momentum and confidence in our ability to continue creating long‑term value for shareholders.”

Seniors Housing Operating Portfolio (“SHOP”) Portfolio Composition:

“The transformation of our portfolio to a material composition of higher-growth SHOP investments will drive better risk adjusted returns of our shareholders,” said Clint Malin, LTC’s Co-CEO. “We are executing on our SHOP strategy with speed, determination and conviction, with a goal of SHOP representing 45% of our investment portfolio by the end of 2026 to further enhance our growth profile.”

Fourth Quarter 2025 Financial Results

Three Months Ended

December 31,

(unaudited, amounts in thousands, except per share data)

2025

2024

Total revenues

84,293

52,582

Net loss income available to common stockholders

101,618

17,912

Diluted earnings per common share

2.11

0.39

Nareit funds from operations attributable to common stockholders ("FFO") (1)

34,510

32,962

Nareit diluted FFO per common share (1)

0.72

FFO attributable to common stockholders, excluding non-recurring items ("Core FFO") (1)

33,459

29,583

Diluted Core FFO per share (1)

0.70

0.65

Funds available for distribution ("FAD") (1)

37,039

30,201

Diluted FAD per share (1)

0.77

0.66

FAD, excluding non-recurring items ("Core FAD") (1)

35,031

30,201

Diluted Core FAD per share (1)

0.73

0.66

Represents non-GAAP financial measures. A reconciliation of these measures is included in the tables at the end of this press release.

Supplemental Information

The company has disclosed more detailed financial information in the tables below, the Company’s Supplemental Operating and Financial Data presentation for the 2025 fourth quarter, and its Form 10-K, as filed with the Securities and Exchange Commission, which can be found online at https://ir.ltcreit.com.

Fourth Quarter 2025 Transactions Update

Year to Date 2026 Transactions Update

Proforma Liquidity

Guidance

LTC is introducing full year 2026 guidance, and is providing 2026 first quarter guidance, as follows:

2026

Full Year

First Quarter

Diluted earnings per common share

$1.80 to $1.84

$0.60 to $0.62

Diluted Core FFO per share

$2.75 to $2.79

$0.66 to $0.68

Diluted Core FAD per share

$2.82 to $2.86

$0.68 to $0.70

The assumptions underlying the full year and first quarter guidance are as follows:

Information and a reconciliation of the Company’s guidance, funds from operations attributable to common stockholders, excluding non-recurring items, (“Core FFO”) and funds available for distribution, excluding non-recurring items, (“Core FAD”) can be found in the tables at the end of this press release.

Conference Call Information

LTC will conduct a conference call on Wednesday, February 25, 2026 at 8:00 a.m. Pacific / 11:00 a.m. Eastern, to provide commentary on its performance and operating results for the quarter ended December 31, 2025.

Webcast

https://ir.ltcreit.com/

USA Toll-Free Number

(877) 407‑8634

International Number

(201) 689‑8502

Conference Call Replay

A replay of the call will be available three hours after the live call through March 11, 2026.

USA Toll-Free Number

(877) 660‑6853

International Number

(201) 612-7415

Access ID

13758526

About LTC

LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, principally investing through SHOP, as well as triple-net leases, and joint ventures. The Company’s portfolio includes nearly 190 properties throughout the United States. Based on gross real estate investments, 63% of the Company’s assets are seniors housing communities with the remainder skilled nursing centers. Learn more at www.LTCreit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. You can identify some of the forward-looking statements by their use of forward-looking words, such as “believes,” “expects,” “may,” “will,” “could,” “would,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or the negative of those words or similar words. Examples of forward-looking statements include the Company’s 2025 full-year and fourth quarter guidance and statements regarding the Company’s investment pipeline, expected SHOP portfolio size, anticipated growth, acquisitions, NOI, capital expenditures, expenses, and future strategy. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect the Company’s future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to, the Company’s dependence on its operators for revenue and cash flow; operational and legal risks and liabilities under the Company’s new SHOP segment, government regulation of the health care industry; changes in federal, state, or local laws limiting REIT investments in the health care sector; federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid; required regulatory approvals for operation of health care facilities; a failure to comply with federal, state, or local regulations for the operation of health care facilities; the adequacy of insurance coverage maintained by the Company’s operators; the Company’s reliance on a few major operators; the Company’s ability to renew leases or enter into favorable terms of renewals or new leases; the impact of inflation, operator financial or legal difficulties; the sufficiency of collateral securing mortgage loans; an impairment of the Company’s real estate investments; the relative illiquidity of the Company’s real estate investments; the Company’s ability to develop and complete construction projects; the Company’s ability to invest cash proceeds for health care properties; a failure to qualify as a REIT; the Company’s ability to grow if access to capital is limited; and a failure to maintain or increase the Company’s dividend. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion under “Risk Factors” contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2025, the Company’s subsequent Quarterly Reports on Form 10‑Q, and the Company’s publicly available filings with the Securities and Exchange Commission. The Company does not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise. Although the Company’s management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

(unaudited)

(audited)

Revenues:

Rental income

26,708

34,814

116,171

132,278

Resident fees and services (1)

37,963

—

72,116

—

Interest income from financing receivables (2)

7,133

7,002

28,315

21,663

Interest income from mortgage loans

10,308

9,374

39,023

45,216

Interest and other income

2,181

1,392

7,229

10,690

Total revenues

84,293

52,582

262,854

209,847

Expenses:

Interest expense

10,588

8,365

35,306

40,336

Depreciation and amortization

10,949

9,194

37,874

36,367

Seniors housing operating expenses (1)

27,307

—

54,088

—

Impairment loss

—

6,953

—

6,953

Write-off of effective interest receivable

—

41,455

—

Provision (recovery) for credit losses

873

(201

)

4,515

741

Transaction costs

487

140

8,221

819

Triple-net lease property tax expense

2,312

3,114

10,795

12,930

General and administrative expenses

8,179

7,227

31,120

27,243

Total expenses

60,695

34,792

223,374

125,389

Income before unconsolidated joint ventures, real estate dispositions and other items

23,598

17,790

39,480

84,458

Gain on sale of real estate, net

78,057

1,097

77,822

7,979

Income from unconsolidated joint ventures

2,214

703

6,757

2,442

Income tax provision

(218

)

—

(179

)

—

Net income

103,651

19,590

123,880

94,879

Income allocated to non-controlling interests

(1,456

)

(1,507

)

(5,908

)

(3,839

)

Net income attributable to LTC Properties, Inc.

102,195

18,083

117,972

91,040

Income allocated to participating securities

(577

)

(171

)

(696

)

(682

)

Net income available to common stockholders

101,618

17,912

117,276

90,358

Earnings per common share:

Basic

2.13

0.40

2.54

2.07

Diluted

2.11

0.39

2.52

2.04

Weighted average shares used to calculate earnings per

common share:

Basic

47,724

45,025

46,230

43,743

Diluted

48,054

45,523

46,560

44,241

Dividends declared and paid per common share

0.57

2.28

Represents the Company’s seniors housing operating portfolio (“SHOP”) operating income and expense.

Represents rental income from acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as Financing receivables on the Consolidated Balance Sheets and the rental income to be presented as Interest income from financing receivables on the Consolidated Statements of Income.

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(audited, amounts in thousands, except per share amounts)

December 31, 2025

December 31, 2024

ASSETS

Investments:

Land

128,590

118,209

Buildings and improvements

1,482,075

1,212,853

Accumulated depreciation and amortization

(408,906

)

(405,884

)

Operating real estate property, net

1,201,759

925,178

Properties held-for-sale, net of accumulated depreciation: 2025—$0; 2024—$1,346

—

670

Real property investments, net

1,201,759

925,848

Financing receivables, (1) net of credit loss reserve: 2025—$3,631; 2024—$3,615

359,457

357,867

Mortgage loans receivable, net of credit loss reserve: 2025—$3,849; 2024—$3,151

381,662

312,583

Real estate investments, net

1,942,878

1,596,298

Notes receivable, net of credit loss reserve: 2025—$259; 2024—$477

25,615

47,240

Investments in unconsolidated joint ventures

12,524

30,602

Investments, net

1,981,017

1,674,140

Other assets:

Cash and cash equivalents

14,387

9,414

Debt issue costs related to revolving line of credit

4,742

1,410

Interest receivable

22,720

60,258

Straight-line rent receivable

17,949

21,505

Prepaid expenses and other assets

21,245

19,415

Total assets

2,062,060

1,786,142

LIABILITIES

Revolving line of credit

252,863

144,350

Term loans, net of debt issue costs: 2025—$1,787 ; 2024—$192

198,213

99,808

Senior unsecured notes, net of debt issue costs: 2025—$895; 2024—$1,058

391,105

440,442

Accrued interest

3,806

3,094

Accrued expenses and other liabilities

53,689

45,443

Total liabilities

899,676

733,137

EQUITY

Stockholders’ equity:

Common stock: $0.01 par value; 110,000 shares authorized; shares issued and outstanding: 2025—48,482; 2024—45,511

485

455

Capital in excess of par value

1,189,846

1,082,764

Cumulative net income

1,843,407

1,725,435

Accumulated other comprehensive income

482

3,815

Cumulative distributions

(1,959,236

)

(1,851,842

)

Total LTC Properties, Inc. stockholders’ equity

1,074,984

960,627

Non-controlling interests

87,400

92,378

Total equity

1,162,384

1,053,005

Total liabilities and equity

2,062,060

1,786,142

Represents acquisitions through sale-leaseback transactions, subject to leases that contain purchase options. In accordance with GAAP, the properties are required to be presented as financing receivables on the Consolidated Balance Sheets.

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(audited, amounts in thousands)

Year Ended December 31,

2025

2024

OPERATING ACTIVITIES:

Net income

123,880

94,879

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

37,874

36,367

Stock-based compensation expense

9,329

9,052

Impairment loss

—

6,953

Gain on sale of real estate, net

(77,822

)

(7,979

)

Income tax provision

179

—

Income from unconsolidated joint ventures

(6,757

)

(2,442

)

Income distributions from unconsolidated joint ventures

6,839

1,278

Straight-line rent adjustment

1,631

(2,268

)

Adjustment for collectability of straight-line rental income

1,514

321

Adjustment for collectability of lease incentives

249

—

Amortization of lease incentives

687

818

Write-off of effective interest receivable

41,455

—

Provision for credit losses

4,515

741

Application of interest reserve

—

(233

)

Amortization of debt issue costs

1,626

1,059

Other non-cash items, net

Change in operating assets and liabilities

Lease incentives funded

—

(1,924

)

Increase in interest receivable

(9,737

)

(10,390

)

Increase (decrease) in accrued interest payable

712

(771

)

Net change in other assets and liabilities

(264

)

319

Net cash provided by operating activities

135,977

125,875

INVESTING ACTIVITIES:

Investment in real estate properties

(354,587

)

(319

)

Investment in real estate capital improvements

(7,270

)

(13,675

)

Proceeds from sale of real estate, net

126,701

38,867

Investment in financing receivables

(1,664

)

(97

)

Investment in real estate mortgage loans receivable

(107,632

)

(21,833

)

Principal payments received on mortgage loans receivable

38,237

85,905

Investments in unconsolidated joint ventures

(1,262

)

(11,262

)

Proceeds from liquidation of investments in unconsolidated joint ventures

19,340

—

Advances and originations under notes receivable

(25

)

(340

)

Principal payments received on notes receivable

18,218

13,434

Net cash (used in) provided by investing activities

(269,944

)

90,680

FINANCING ACTIVITIES:

Net borrowings (repayment) under revolving line of credit

108,513

(157,900

)

Proceeds from debt

200,000

—

Repayment of debt

(149,500

)

(49,160

)

Proceeds from common stock issued

100,555

83,107

Payments of common share issuance costs

(436

)

(703

)

Distributions paid to stockholders

(107,394

)

(100,530

)

Acquisition of and distribution paid to non-controlling interests

(1,188

)

(109

)

Financing costs paid

(6,390

)

(569

)

Cash paid for taxes in lieu of shares upon vesting of long-term equity incentives

(5,209

)

(1,533

)

Other

(11

)

(30

)

Net cash provided by (used in) financing activities

138,940

(227,427

)

Increase (decrease) in cash and cash equivalents

4,973

(10,872

)

Cash and cash equivalents, beginning of period

9,414

20,286

Cash and cash equivalents, end of period

14,387

9,414

See LTC’s most recent Quarterly Report on Form 10‑Q for Supplemental Cash Flow Information

Supplemental Reporting Measures

FFO and FAD are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by U.S. generally accepted accounting principles (“GAAP”). Investors, analysts and the Company use FFO and FAD as supplemental measures of operating performance. The Company believes FFO and FAD are helpful in evaluating the operating performance of a REIT. Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. LTC believes that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO and FAD facilitate like comparisons of operating performance between periods. Occasionally, the Company may exclude non-recurring items from FFO and FAD in order to allow investors, analysts and management to compare the Company’s operating performance on a consistent basis without having to account for differences caused by unanticipated items.

FFO, as defined by the National Association of Real Estate Investment Trusts (“Nareit”), means net income available to common stockholders (computed in accordance with GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current Nareit definition or have a different interpretation of the current Nareit definition from that of the Company; therefore, caution should be exercised when comparing the Company’s FFO to that of other REITs.

The Company defines FAD as FFO excluding the effects of straight-line rent, amortization of lease inducement, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in the consolidated balance sheet. At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. Effective interest method, as required by GAAP, is a technique for calculating the actual interest rate for the term of a loan based on the initial origination value. Similar to the accounting methodology of straight-line rent, the actual interest rate is higher than the stated interest rate in the early years of a loan thus creating an effective interest receivable asset included in the interest receivable line item in the consolidated balance sheet and reduces down to zero when, at some point during the loan term, the stated interest rate is higher than the actual interest rate. FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.

While the Company uses FFO and FAD as supplemental performance measures of the cash flow generated by operations and cash available for distribution to stockholders, such measures are not representative of cash generated from operating activities in accordance with GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.

Reconciliation of FFO and FAD

The following table reconciles GAAP net income available to common stockholders to each of Nareit FFO attributable to common stockholders and FAD (unaudited, amounts in thousands):

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

GAAP net income available to common stockholders

101,618

17,912

117,276

90,358

Add: Impairment loss

—

6,953

—

6,953

Add: Depreciation and amortization

10,949

9,194

37,874

36,367

Less: Gain on sale of real estate, net

(78,057

)

(1,097

)

(77,822

)

(7,979

)

Nareit FFO attributable to common stockholders

34,510

32,962

77,328

125,699

(Less) Add: Adjustments (1)

(1,051

)

(3,379

)

49,783

(8,907

)

FFO, excluding non-recurring items ("Core FFO")

33,459

29,583

127,111

116,792

Nareit FFO attributable to common stockholders

34,510

32,962

77,328

125,699

Non-cash income:

Add (Less): Straight-line rent adjustment

184

(2,829

)

1,631

(2,268

)

Add: Amortization of lease incentives

131

192

936

818

Add: Other non-cash contra-revenue

—

1,514

321

Less: Effective interest income

(710

)

(2,184

)

(2,904

)

(8,591

)

Net non-cash income

(395

)

(4,821

)

1,177

(9,720

)

Non-cash expense:

Add: Non-cash compensation charges

2,141

2,261

9,329

9,052

Add: Write-off of effective interest receivable

—

41,455

—

Add (Less): Provision (recovery) for credit losses

873

(201

)

4,515

741

Less: Recurring capital expenditures

(90

)

—

(390

)

—

Net non-cash expense

2,924

2,060

54,909

9,793

Funds available for distribution ("FAD")

37,039

30,201

133,414

125,772

(Less) Add: Adjustments (1)

(2,008

)

—

149

(7,756

)

FAD, excluding non-recurring items ("Core FAD")

35,031

30,201

133,563

118,016

See the reconciliation of non-recurring items on the following page for further detail.

Reconciliation of FFO and FAD (continued)

The following table continues the reconciliation between GAAP net income available to common stockholders and each of Nareit FFO attributable to common stockholders and FAD by reconciling the adjustments (unaudited, amounts in thousands):

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

Reconciliation of adjustments to Nareit FFO:

Notes receivables and related interest receivable, if applicable, write-off

957

(1)

290

(2)

4,021

(1)

290

(2)

Provision for credit losses related to partial principal paydown

—

613

Provision for credit losses reserve recorded upon origination

—

938

1,635

Recovery for credit losses related to loan payoffs

—

(511

)

(375

)

(1,738

)

Add: Total provision for credit losses adjustments

957

(221

)

4,584

800

Effective interest receivable write-off

—

41,455

(3)

—

Straight-line rent receivable write-off

—

1,271

(4)

321

(4)

Lease termination fee paid upon conversion to SHOP

—

5,971

—

Transaction costs associated with the startup of new SHOP segment

392

—

1,703

—

One-time general and administrative expenses related to an employee retirement

—

1,136

—

Add: Expense and contra-revenue adjustments

392

—

51,536

321

Income related to exit IRRs received

(1,800

)

(5)

—

(5,737

)

(5)

—

Other income received from former operators

(600

)

—

(600

)

(4,052

)

One-time rental income related to sold properties

—

(2,818

)

One-time additional straight-line income

—

(3,158

)

—

(3,158

)

Deduct: Income adjustments

(2,400

)

(3,158

)

(6,337

)

(10,028

)

Total adjustments to Nareit FFO

(1,051

)

(3,379

)

49,783

(8,907

)

Reconciliation of adjustments to FAD:

Lease termination fee paid upon conversion to SHOP

—

5,971

—

Transaction costs associated with the startup of new SHOP segment

392

—

1,703

—

One-time general and administrative expenses related to an employee retirement

—

436

—

Add: Cash expense adjustments

392

—

8,110

—

Income related to exit IRRs received

(1,800

)

(5)

—

(7,361

)

(5)

(886

)

(6)

Other income received from former operators

(600

)

—

(600

)

(4,052

)

One-time rental income related to sold properties

—

(2,818

)

Deduct: Cash income adjustments

(2,400

)

—

(7,961

)

(7,756

)

Total cash adjustments to FAD

(2,008

)

—

149

(7,756

)

Represents the write-off of a working capital note and related interest receivable balance, if applicable, in connection with the transition to SHOP.

Represents a note receivable write-off in connection with the pending closure of a 56-unit assisted living community located in Texas. The property was sold during the 2025 third quarter.

During 2025, LTC wrote off $41,455 of effective interest receivable related to a mortgage loan amendment that permits penalty-free early payoff within an allowable window.

During 2025, LTC wrote off $1,271 of straight-line rent receivable due to an operator’s on-going bankruptcy filing. During 2024, LTC wrote off $321 of straight-line rent receivable related to a lease that converted to fair market rent during the 2024 second quarter. The straight-line rent write-offs are recorded as contra-revenue on the Consolidated Statements of Income.

The exit IRR income adjustment includes the following:

$1,800 received in connection with the redemption of LTC’s preferred equity investment in a joint venture during the 2025 fourth quarter. The 12% exit IRR was not previously recorded;

$2,599 received upon the early payoff of a mezzanine loan during 2025 third quarter. The FFO adjustment represents the $2,599 offset by $1,624 of effective interest receivable balance previously recognized over the term of the loan through payoff; and

$2,962 received in connection with the redemption of LTC’s preferred equity investment in a joint venture during the 2025 first quarter. The 13% exit IRR was not previously recorded.

The exit IRR income was received upon the payoff of three mortgage loans in 2024. The exit IRR was previously recorded ratably over the term of the loan through effective interest income.

Reconciliation of FFO and FAD (continued)

The following table continues the reconciliation between GAAP net income available to common stockholders and each of Nareit FFO attributable to common stockholders and FAD (unaudited, amounts in thousands, except per share amounts):

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

Basic Nareit FFO attributable to common stockholders per share

0.72

0.73

1.67

2.87

Diluted Nareit FFO attributable to common stockholders per share

0.72

1.66

2.84

Diluted Nareit FFO attributable to common stockholders

34,510

33,133

77,328

126,381

Weighted average shares used to calculate Nareit diluted FFO attributable to common stockholders per share

48,054

45,824

46,560

44,537

Basic Core FFO per share

0.70

0.66

2.75

2.67

Diluted Core FFO per share

0.70

0.65

2.73

2.64

Diluted Core FFO

33,459

29,754

127,807

117,474

Weighted average shares used to calculate diluted Core FFO per share

48,054

45,824

46,832

44,537

Basic FAD per share

0.78

0.67

2.89

2.88

Diluted FAD per share

0.77

0.66

2.86

2.84

Diluted FAD

37,039

30,372

134,110

126,454

Weighted average shares used to calculate diluted FAD per share

48,054

45,824

46,832

44,537

Basic Core FAD per share

0.73

0.67

2.89

2.70

Diluted Core FAD per share

0.73

0.66

2.87

2.67

Diluted Core FAD

35,031

30,372

134,259

118,698

Weighted average shares used to calculate diluted Core FAD per share

48,054

45,824

46,832

44,537

Reconciliation of FFO and FAD (continued)

Guidance

The Company is introducing guidance for the 2026 full year, and is providing 2026 first quarter guidance. The following guidance ranges reflect management's view of current and future market conditions. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth below. Except as otherwise required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing guidance ranges as a result of new information or new or future developments. The 2026 full year guidance is as follows (unaudited, amounts in thousands, except per share amounts):

Full Year 2026 Guidance

First Quarter 2026 Guidance

Low

High

Low

High

Diluted earnings per common share

1.80

1.84

0.60

0.62

Less: Gain on sale, net of impairment loss

(0.13

)

(0.13

)

(0.15

)

(0.15

)

Add: Depreciation and amortization

1.10

0.25

Diluted Nareit FFO attributable to common stockholders

2.77

2.81

0.70

0.72

Add: Adjustments

(0.02

)

(0.02

)

(0.04

)

(0.04

)

Diluted Core FFO

2.75

2.79

0.66

0.68

Diluted Nareit FFO attributable to common stockholders

2.77

2.81

0.70

0.72

Add: Non-cash expense

0.14

0.03

Less: Recurring capital expenditures

(0.10

)

(0.10

)

(0.02

)

(0.02

)

Diluted FAD

2.81

2.85

0.71

0.73

Add: Adjustments

0.01

(0.03

)

(0.03

)

Diluted Core FAD

2.82

2.86

0.68

0.70

_______________________

The assumptions underlying the full year and first quarter guidance are as follows: