UPDATE: Stifel Nicolaus Downgrades LTC Properties to Hold

Stifel Nicolaus lowers its rating on LTC Properties LTC to Hold from Buy as shares exceed price target (now pulled). Stifel Nicolaus comments, "LTC currently trades at 14.8x price to forward twelve months FAD versus a five-year historical average of 13.2x, though we think the multiple expansion is deserved, and at a discount to current median price to forward FAD for all HCREITs of 15.7x. We also calculate LTC currently trades at an implied cap rate of 7.0%, 505 basis points over 10Y Treasuries or 20 bps above the 5-year historical spread and 260 basis points over BBB corporate bonds or 40 bps above the 5-year historical spread. While not expensive in our view relative to bond alternatives, we believe LTC shares do not have enough room for near-term share appreciation to justify keeping our Buy rating." LTC closed at $32.70 a share on Monday.