Core Points - Lotus Creek Exploration Inc. has released its inaugural Monthly Report to Shareholders and a new Corporate Presentation [1][2] - The Monthly Report aims to keep shareholders informed about the company's operational and financial progress [2] - The reports will be published monthly, with the November 2025 report already available on the company's website [2] Monthly Report - The Monthly Report to Shareholders is designed to provide updates on operational and financial momentum [2] - The November 2025 Monthly Report can be accessed through the company's website [2] Corporate Presentation - A new Corporate Presentation has been made available on the company's website [2] - The presentation is intended to provide additional insights into the company's operations and strategy [2]

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus of the research includes metals and mining stocks, as well as consumer discretionary/staples, REITs, and utilities [1] Group 2 - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on numerous companies has been conducted [1]

Group 1 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched more than 1000 companies, focusing on metals and mining stocks, as well as other industries like consumer discretionary, REITs, and utilities [1] - The analyst transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on numerous companies has been conducted [1] Group 2 - There is no current stock or derivative position in any mentioned companies, but a potential long position may be initiated within 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [3]

Core Viewpoint - Most investors are currently uncertain about whether to take profits from their technology investments and shift towards monthly dividend stocks [1] Group 1 - Investors are contemplating profit-taking on technology gains [1] - There is a potential shift in focus towards monthly dividend stocks [1]

Core Insights - LTC REIT has been a trusted capital partner in the seniors housing and care properties sector since the early 1990s, with approximately 62% of its assets invested in seniors housing and the remainder in skilled nursing [1] Investment Appeal - Advisors should consider LTC as a compelling investment due to three key reasons: growth, monthly dividends, and strong industry fundamentals [2] - LTC's size provides strategic advantages, allowing every transaction to significantly impact the company, ensuring high levels of leadership engagement [2] Strategic Focus - The company has launched a strategic initiative called SHOP to diversify its portfolio and divest non-core, underperforming assets, which has proven to be a transformative growth catalyst [2] - LTC has increased its 2025 investment guidance from $400 million to $460 million, reflecting strong operator relationships and a robust deal pipeline [3] Long-term Growth Strategy - LTC's long-term growth strategy is centered on building a company defined by growth, quality, and consistent performance [3] - The company maintains strong momentum and significant opportunities ahead while continuing to pay monthly dividends [4]

Core Insights - The article discusses the current investment landscape, emphasizing the appeal of low-volatility stocks that offer high dividend yields amidst market uncertainty [3][4][5]. Group 1: Low Volatility Stocks - Low beta stocks, which are less volatile than the market, are currently undervalued, making them attractive for investors seeking stability [4][5]. - Safety Insurance Group (SAFT) offers a 5.2% yield and has low betas of 0.47 (1-year) and 0.26 (5-year), indicating its stability despite recent lackluster underwriting results [7][9][10]. - Universal Corp. (UVV) provides a 6.4% yield and operates as a tobacco supplier rather than a manufacturer, with betas of 0.33 (1-year) and 0.67 (5-year), reflecting its counter-market trends [11][13]. - LTC Properties (LTC) is a REIT with a 6.4% yield and low betas of 0.62 (5-year) and 0.23 (1-year), showing steady performance and a shift towards more operational exposure [14][15]. - Flowers Foods (FLO) has an 8.2% yield but faces challenges from import tariffs and high debt, with betas of 0.16 (1-year) and 0.31 (5-year) [15][17]. - Apple Hospitality REIT (APLE) offers an 8.6% yield and has betas of 0.94 (1-year) and 0.85 (5-year), indicating moderate volatility, with a diversified hotel portfolio [18][19][20]. Group 2: Market Conditions and Investment Strategy - The current bull market may be nearing a peak, prompting investors to consider low-volatility stocks as a defensive strategy [3][6]. - The article suggests that investors should prepare their portfolios for potential market downturns by focusing on stable, high-yield investments [3][6].

Group 1 - The article provides a market analysis covering several companies including Safety Insurance Group Inc, LTC Properties Inc, Universal Corporation, and Flowers Foods Inc [1] - The analysis aims to identify potential investment opportunities and risks associated with these companies [1] - The report is available on Investing.com, indicating a focus on providing insights for investors [1] Group 2 - Safety Insurance Group Inc is highlighted for its performance metrics and market positioning [1] - LTC Properties Inc is analyzed in terms of its investment potential and market trends [1] - Universal Corporation and Flowers Foods Inc are also discussed, focusing on their respective market dynamics and financial health [1]

Core Insights - Lotus Creek Exploration Inc. has provided its third quarter operating results and operational update, highlighting significant production growth and capital investments in its inaugural year as a public company [1][4]. Quarterly Highlights - The company reported an average production of 1,425 barrels of oil equivalent per day (boe/d) for Q3 2025, with a notable increase to over 2,900 boe/d in October 2025 [5][6]. - Adjusted funds from operations for Q3 2025 were $1.9 million, slightly down from $2.0 million in Q2 2025 [5][7]. Operational Update - Lotus Creek successfully drilled and completed 2.0 gross (2.0 net) light oil Belly River wells in Wilson Creek, achieving an average production rate of over 1,700 boe/d for October 2025 [5][6]. - The company has doubled its production base and anticipates Q4 average production guidance between 3,000 and 3,400 boe/d [5][6]. 2025 Revised Fiscal Guidance - The annual production guidance remains unchanged at 2,000 - 2,400 boe/d, while the Q4 average production guidance is also maintained [4][6]. - Changes in commodity weighting were noted, with light oil and natural gas liquids (NGLs) now expected to comprise 75% of production, down from a previous estimate of 77% [6]. Financial Metrics - Capital expenditures for Q3 2025 totaled $18.8 million, including the completion of a new 5,000 boe/d oil battery and gathering system [5][6]. - As of September 30, 2025, the company reported a net debt of $6.5 million, with a net debt to quarterly funds from operations ratio of 0.8 times [5][6]. Production and Sales Data - The production breakdown for Q3 2025 included 874 bbl/d of light oil, 201 bbl/d of NGLs, and 2,100 mcf/d of natural gas [5][8]. - Average realized prices for Q3 2025 were $84.65 per bbl for light oil and $0.54 per mcf for natural gas [8]. Capital and Abandonment Expenditures - Total capital and abandonment expenditures for the nine months ended September 30, 2025, were $31.9 million, with exploration and evaluation expenditures of $12.3 million [7][8]. Company Overview - Lotus Creek is focused on becoming a leading junior oil and gas company in Canada, with a strategy centered on profitable growth in earnings, cash flow, production, and reserves [11][12].

Financial Data and Key Metrics Changes - Core FFO improved to $0.69 from $0.68, primarily due to an increase in SHOP NOI and a decrease in interest expense [5][6] - Core FAD improved by $0.04 to $0.72 compared to $0.68 last year, influenced by similar factors affecting core FFO [5] - Pro forma debt to annualized adjusted EBITDA for real estate was 4.7 times, and annualized adjusted fixed charge ratio was 4.6 times [7] - Pro forma liquidity stands at nearly $500 million [7] - Full year 2025 core FFO guidance increased by $0.01, now standing at $2.69-$2.71 [8] Business Line Data and Key Metrics Changes - SHOP segment closed about 85% of the projected $460 million investment pipeline, with over $290 million in SHOP segment investments [3] - SHOP portfolio now includes 21 properties with five operators, three of which are new to LTC, with a gross book value of $447 million [9] - SHOP NOI guidance for 13 properties increased to $10.9-$11.3 million, up from $9.4-$10.3 million [10] - Expected fourth quarter NOI for the remainder of the SHOP portfolio is $4.8-$5.2 million [10] Market Data and Key Metrics Changes - The current opportunity set stands at roughly $1 billion, with nearly $110 million under LOI targeted to close in January 2026 [12] - The average vintage of SHOP acquisitions in 2025 is 2019, indicating a focus on newer assets [39] Company Strategy and Development Direction - The company is focused on expanding its SHOP platform, deepening operator partnerships, and driving long-term accretive returns [16] - The strategy includes recycling capital from non-core assets and adding new operators to enhance portfolio quality [9] - The company aims to build a portfolio of newer assets with competitive advantages as the industry evolves [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong momentum and a solid foundation for growth [16] - The company is positioned to capitalize on favorable demand fundamentals and supply constraints in the senior housing market [3] - Management expects continued strong SHOP NOI growth due to the competitive position of SHOP assets [10] Other Important Information - The company completed the sale of a portfolio of seven skilled nursing assets, generating net proceeds of approximately $120 million and a gain of $78 million [11] - A non-cash write-off of $41.5 million was taken related to Prestige's straight-line effective interest receivable balance [6] Q&A Session Summary Question: Guidance assumptions for core FFO range - Management clarified that the low range includes all closed investments, while the high range includes expected closings within the next 60 days [20] Question: Focus on SHOP deals versus other opportunities - The primary focus is on SHOP deals, although other opportunities will be considered [21] Question: Expected yields and growth for pipeline deals - Initial yields for the $110 million deal are guided at 7% [25] Question: Funding incremental capital - Proceeds from loan payoffs and equity from the ATM will fund investments, with a disciplined approach to equity issuance [28] Question: Growth profile after SHOP investments - Management expects more than 3% growth with targeted low double-digit IRRs due to supply-demand imbalances [37][38] Question: Transitioning operators and potential disruptions - Most acquisitions have retained existing operators, with careful planning to avoid disruptions [50] Question: Prestige's prepayment option and performance - Prestige needs to improve performance to exercise the purchase option, with positive indications for future outcomes [54][57] Question: Opportunities for earnings growth in skilled nursing - The company remains selective in skilled nursing, focusing on transitional care and newer assets [64]

Portfolio Composition - As of November 4, 2025, LTC's portfolio consisted of 187 properties across 24 states, operated by 31 different operators[11] - The portfolio is diversified by investment type, with Seniors Housing - NNN accounting for 42.3%, Seniors Housing - SHOP for 20.0%, and Skilled Nursing for 37.1% of the portfolio[14, 20] - Long-term investments, including Owned Portfolio, Owned Properties accounted for as Financing Receivables and Long-Term Mortgage Loans (Prestige), represent 92% of Gross Investments[38, 39] - Short-term investments, including Notes Receivable, Unconsolidated Joint Ventures and Short-Term Mortgage Loans, represent 8% of Gross Investments[38, 39] Acquisitions and Investments - LTC expects to close approximately $70 million in SHOP acquisitions in 4Q 2025 and an additional approximately $110 million in SHOP acquisitions in January 2026[19, 24] - In 3Q25, LTC acquired 9 properties with 833 units for $291.65 million, including SHOP acquisitions from Discovery, Charter, Lifespark and Arbor[22, 26] - Mortgage loans in 3Q25 included $99.85 million invested in 3 properties with 421 units[26] Financial Performance - Proforma portfolio overview as of September 30, 2025, shows a gross investment of $2,348.749 million, with $182.740 million in NOI[37] - Triple-Net Portfolio ("NNN") accounts for 45.9% of the investment and 53.8% of the NOI[37] - Seniors Housing Operating Portfolio ("SHOP") accounts for 20.0% of the investment and 5.0% of the NOI[37] - Debt to Enterprise Value is 34.2% and Debt to Annualized Adjusted EBITDAre is 5.6x[83]