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Section 1: 8-K (8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20459

 


 

FORM 8-K

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report:  August 8, 2019

(Date of earliest event reported)

 

LTC PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)

 

Maryland

 

1-11314

 

71-0720518

(State or other jurisdiction of

 

(Commission file number)

 

(I.R.S. Employer

incorporation or organization)

 

 

 

Identification No)

 

2829 Townsgate Road, Suite 350

Westlake Village, CA  91361

(Address of principal executive offices)

 

(805) 981-8655

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading symbol(s)

 

Name of each exchange on which registered

Common stock, $.01 par value

 

LTC

 

New York Stock Exchange

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 


 

Item 2.02. — Results of Operations and Financial Condition

 

On August 8, 2019, LTC Properties, Inc. announced the operating results for the three months ended June 30, 2019. The text of the press release and the supplemental information package are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are specifically incorporated by reference herein.

 

The information in this Form 8-K and the related information in the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of LTC under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01. — Financial Statements and Exhibits

 

99.1                        Press Release issued August 8, 2019.

99.2                        LTC Properties, Inc. Supplemental Information Package for the period ending June 30, 2019.

 

SIGNATURE

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

LTC PROPERTIES, INC.

 

 

 

 

Dated: August 8, 2019

By:

/s/ WENDY L. SIMPSON

 

 

Wendy L. Simpson

 

 

Chairman, CEO & President

 

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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

For more information contact:

Wendy L. Simpson

Pam Kessler

(805) 981-8655

 

LTC REPORTS 2019 SECOND QUARTER RESULTS

AND DISCUSSES RECENT ACTIVITIES

 

WESTLAKE VILLAGE, CALIFORNIA, August 8, 2019 — LTC Properties, Inc. (NYSE: LTC), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for its second quarter ended June 30, 2019.

 

Net income available to common stockholders was $20.4 million, or $0.51 per diluted share, for the 2019 second quarter, compared with $68.7 million, or $1.73 per diluted share, for the same period in 2018. The decrease in net income available to common stockholders was primarily due to a higher gain on sale in the prior year, lower income from unconsolidated joint ventures, higher depreciation expense and transaction costs, partially offset by higher revenues.

 

Funds from Operations (“FFO”) was $29.7 million for the 2019 second quarter, compared with $29.6 million for the comparable 2018 period. FFO per diluted common share was $0.75 for the quarters ended June 30, 2019 and 2018.

 

LTC completed the following during the second quarter of 2019:

 

·                  Funded an additional $7.5 million under an existing mortgage loan. The incremental funding bears interest at 9.41%, fixed for two years, and escalating thereafter by 2.25%;

 

·                  Completed construction of and opened a 110-unit seniors housing community in Wisconsin;

 

·                  Transitioned two memory communities in Ohio and Kentucky with a total of 120-units from Thrive Senior Living (“Thrive”) to a new operator. The memory care communities are under a 10-year master lease with initial cash rent of $1.3 million in year one, $1.5 million in year two, $2.0 million in year three and $2.2 million in year four. Rent may increase subject to a contingent escalation formula commencing in year five and annually thereafter; and

 

·                  Transitioned a 56-unit memory care community in Texas from Thrive to an operator in LTC’s current portfolio and added the property to an existing master lease. Annual cash rent under the master lease increased by $400,000 and will increase by an additional $300,000 on June 1, 2020, and 2.5% annually thereafter. Additionally, LTC will be entitled to incremental rent calculated as a percentage of increases in gross revenues generated by the community above an established threshold.

 

1


 

Subsequent to June 30, 2019, LTC:

 

·                  Entered into a purchase and sale agreement for the acquisition of a newly constructed 90-bed skilled nursing center located in Missouri for approximately $19.5 million. Simultaneously upon closing, LTC will enter into a 12-year lease agreement with an operator new to LTC’s portfolio at an initial cash yield of 8.3%. Additionally, LTC entered into a separate purchase and sale agreement for the acquisition of a parcel of land and development of a 90-bed skilled nursing center in Missouri with the same operator. The commitment totals approximately $18.4 million. Concurrently with closing on the land acquisition, LTC will enter into a separate 12-year lease agreement at an initial cash yield of 9.3% effective upon completion of development, certificate of occupancy and licensure. These transactions are expected to close in the third quarter of 2019;

 

·                  Transitioned two memory care communities in Georgia and South Carolina with a total of 159-units from Thrive to an existing operator. The new 2-year lease has an initial cash rent of $1.8 million. The lease provides the lessee one month free rent and the option to defer up to 50% of contractual rent for the next five months. The rent increases 3.5% in year two; and

 

·                  Effective August 1st transitioned the remaining Thrive property, a 60-unit memory care community located in Florida, to an existing operator.  The new 10-year lease provides the lessee twelve months free rent increasing to $450,000 in year two and $600,000 in year three and thereafter.  In year two the lessee has the option to defer rent in an amount not to exceed $150,000.  Rent may increase subject to a contingent escalation formula commencing in year three and annually thereafter.

 

Conference Call Information

 

LTC will conduct a conference call on Friday, August 9, 2019, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time), to provide commentary on its performance and operating results for the quarter ended June 30, 2019. The conference call is accessible by telephone and the internet. Telephone access will be available by dialing 877-510-2862 (domestically) or 412-902-4134 (internationally). To participate in the webcast, go to LTC’s website at www.LTCreit.com 15 minutes before the call to download any necessary software.

 

An audio replay of the conference call will be available from August 9 through August 23, 2019 and may be accessed by dialing 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering conference number 10132737. Additionally, an audio archive will be available on LTC’s website on the “Presentations” page of the “Investor Information” section, which is under the “Investors” tab. LTC’s earnings release and supplemental information package for the current period will be available on its website on the “Press Releases” and “Presentations” pages, respectively, of the “Investor Information” section which is under the “Investors” tab.

 

About LTC

 

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC holds more than 200 investments in 28 states with 30 operating partners. The portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.

 

2


 

Forward Looking Statements

 

This press release includes statements that are not purely historical and are “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, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward looking statements. These forward looking statements involve a number of risks and uncertainties. Please see LTC’s most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, and its other publicly available filings with the Securities and Exchange Commission for a discussion of these and other risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and LTC assumes no obligation to update such forward looking statements. 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.

 

(financial tables follow)

 

3


 

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

 

 

(unaudited)

 

(unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental income

 

$

38,277

 

$

33,930

 

$

75,901

 

$

68,435

 

Interest income from mortgage loans

 

7,351

 

7,007

 

14,662

 

13,823

 

Interest and other income

 

638

 

535

 

1,159

 

1,024

 

Total revenues

 

46,266

 

41,472

 

91,722

 

83,282

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Interest expense

 

7,710

 

7,655

 

15,177

 

15,484

 

Depreciation and amortization

 

9,860

 

9,268

 

19,467

 

18,712

 

Provision (recovery) for doubtful accounts

 

84

 

(38

)

167

 

(30

)

Transaction costs

 

200

 

6

 

200

 

10

 

Property tax expense

 

3,910

(1)

 

8,296

(1)

 

General and administrative expenses

 

4,596

 

4,716

 

9,167

 

9,513

 

Total expenses

 

26,360

 

21,607

 

52,474

 

43,689

 

 

 

 

 

 

 

 

 

 

 

Other operating income:

 

 

 

 

 

 

 

 

 

Gain on sale of real estate, net

 

500

 

48,345

 

500

 

48,345

 

Operating income

 

20,406

 

68,210

 

39,748

 

87,938

 

Income from unconsolidated joint ventures

 

128

 

726

 

1,213

 

1,357

 

Net income

 

20,534

 

68,936

 

40,961

 

89,295

 

Income allocated to non-controlling interests

 

(88

)

 

(169

)

 

Net income attributable to LTC Properties, Inc.

 

20,446

 

68,936

 

40,792

 

89,295

 

Income allocated to participating securities

 

(94

)

(278

)

(186

)

(366

)

Net income available to common stockholders

 

$

20,352

 

$

68,658

 

$

40,606

 

$

88,929

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.51

 

$

1.74

 

$

1.03

 

$

2.25

 

Diluted

 

$

0.51

 

$

1.73

 

$

1.02

 

$

2.25

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to calculate earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

39,577

 

39,471

 

39,555

 

39,461

 

Diluted

 

39,769

 

39,765

 

39,747

 

39,750

 

 

 

 

 

 

 

 

 

 

 

Dividends declared and paid per common share

 

$

0.57

 

$

0.57

 

$

1.14

 

$

1.14

 

 


(1)         The new income statement line item “property tax expense” is due to the impact of newly adopted Accounting Standard Codification 842, Leases (“ASC 842”). See Footnote 1 in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 for further discussion.

 

4


 

Supplemental Reporting Measures

 

FFO and Funds Available for Distribution (“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. We believe 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 our 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 our Company’s FFO to that of other REITs.

 

We define 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 our 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 mortgage 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 the mortgage loan thus creating an effective interest receivable asset included in the interest receivable line item in our consolidated balance sheet and reduces down to zero when, at some point during the mortgage loan, 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 our 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.

 

5


 

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, except per share amounts):

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

GAAP net income available to common stockholders

 

$

20,352

 

$

68,658

 

$

40,606

 

$

88,929

 

Add: Depreciation and amortization

 

9,860

 

9,268

 

19,467

 

18,712

 

Less: Gain on sale of real estate, net

 

(500

)

(48,345

)

(500

)

(48,345

)

NAREIT FFO attributable to common stockholders

 

29,712

 

29,581

 

59,573

 

59,296

 

 

 

 

 

 

 

 

 

 

 

Add: Non-recurring items (1) (2)

 

 

 

576

 

 

FFO attributable to common stockholders, excluding non-recurring items

 

$

29,712

 

$

29,581

 

$

60,149

 

$

59,296

 

 

 

 

 

 

 

 

 

 

 

NAREIT FFO attributable to common stockholders

 

$

29,712

 

$

29,581

 

$

59,573

 

$

59,296

 

Non-cash income:

 

 

 

 

 

 

 

 

 

Less: straight-line rental income

 

(1,275

)

(2,000

)

(2,513

)

(5,440

)

Add: amortization of lease costs

 

94

 

551

 

181

 

1,091

 

Add: Other non-cash expense (1)

 

 

 

1,926

 

 

Less: Effective interest income from mortgage loans

 

(1,418

)

(1,420

)

(2,833

)

(2,824

)

Less: Deferred income from unconsolidated joint ventures

 

(6

)

(31

)

(13

)

(62

)

Net non-cash income

 

(2,605

)

(2,900

)

(3,252

)

(7,235

)

 

 

 

 

 

 

 

 

 

 

Non-cash expense:

 

 

 

 

 

 

 

 

 

Add: Non-cash compensation charges

 

1,623

 

1,521

 

3,312

 

2,897

 

Add: Non-cash interest related to earn-out liabilities

 

 

125

 

 

251

 

Less: Capitalized interest

 

(73

)

(293

)

(333

)

(552

)

Net non-cash expense

 

1,550

 

1,353

 

2,979

 

2,596

 

 

 

 

 

 

 

 

 

 

 

Funds available for distribution (FAD)

 

28,657

 

28,034

 

59,300

 

54,657

 

 

 

 

 

 

 

 

 

 

 

Less: Non-recurring income (2)

 

 

 

(1,350

)

 

 

 

$

28,657

 

$

28,034

 

$

57,950

 

$

54,657

 

 


(1) Represents the write-off of straight-line rent due to a lease termination and transition of two senior housing communities to a new operator.

(2) Represents deferred rent repayment from an operator.

 

NAREIT Basic FFO attributable to common stockholders per share

 

$

0.75

 

$

0.75

 

$

1.51

 

$

1.50

 

NAREIT Diluted FFO attributable to common stockholders per share

 

$

0.75

 

$

0.75

 

$

1.50

 

$

1.50

 

 

 

 

 

 

 

 

 

 

 

NAREIT Diluted FFO attributable to common stockholders

 

$

29,806

 

$

29,581

 

$

59,759

 

$

59,662

 

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

 

39,934

 

39,605

 

39,908

 

39,750

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO attributable to common stockholders, excluding non-recurring items

 

$

29,806

 

$

29,581

 

$

60,335

 

$

59,662

 

Weighted average shares used to calculate diluted FFO, excluding non-recurring items, per share attributable to common stockholders

 

39,934

 

39,605

 

39,908

 

39,750

 

 

 

 

 

 

 

 

 

 

 

Diluted FAD, excluding non-recurring items

 

$

28,751

 

$

28,034

 

$

58,136

 

$

55,023

 

Weighted average shares used to calculate diluted FAD, excluding non-recurring items, per share

 

39,934

 

39,605

 

39,908

 

39,750

 

 

6


 

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share)

 

 

 

June 30, 2019

 

December 31, 2018

 

 

 

(unaudited)

 

(audited)

 

ASSETS

 

 

 

 

 

Investments:

 

 

 

 

 

Land

 

$

126,028

 

$

125,358

 

Buildings and improvements

 

1,320,895

 

1,290,352

 

Accumulated depreciation and amortization

 

(332,364

)

(312,959

)

Operating real estate property, net

 

1,114,559

 

1,102,751

 

Properties held-for-sale, net of accumulated depreciation: 2019—$1,916; 2018—$1,916

 

3,830

 

3,830

 

Real property investments, net

 

1,118,389

 

1,106,581

 

Mortgage loans receivable, net of loan loss reserve: 2019—$2,539; 2018—$2,447

 

252,016

 

242,939

 

Real estate investments, net

 

1,370,405

 

1,349,520

 

Notes receivable, net of loan loss reserve: 2019—$204; 2018—$128

 

20,157

 

12,715

 

Investments in unconsolidated joint ventures

 

27,521

 

30,615

 

Investments, net

 

1,418,083

 

1,392,850

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

Cash and cash equivalents

 

3,207

 

2,656

 

Restricted cash

 

2,108

 

2,108

 

Debt issue costs related to bank borrowings

 

2,597

 

2,989

 

Interest receivable

 

23,640

 

20,732

 

Straight-line rent receivable, net of allowance for doubtful accounts: 2019—$0; 2018—$746

 

43,730

(1)

73,857

 

Lease incentives

 

2,652

(1)

14,443

 

Prepaid expenses and other assets

 

3,463

(2)

3,985

 

Total assets

 

$

1,499,480

 

$

1,513,620

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Bank borrowings

 

$

146,900

 

$

112,000

 

Senior unsecured notes, net of debt issue costs: 2019—$862; 2018—$938

 

528,938

 

533,029

 

Accrued interest

 

5,290

 

4,180

 

Accrued expenses and other liabilities

 

30,742

(2)

31,440

 

Total liabilities

 

711,870

 

680,649

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2019—39,747; 2018—39,657

 

397

 

397

 

Capital in excess of par value

 

863,993

 

862,712

 

Cumulative net income

 

1,253,748

 

1,255,764

 

Cumulative distributions

 

(1,338,967

)

(1,293,383

)

Total LTC Properties, Inc. stockholders’ equity

 

779,171

 

825,490

 

Non-controlling interests

 

8,439

 

7,481

 

Total equity

 

787,610

 

832,971

 

Total liabilities and equity

 

$

1,499,480

 

$

1,513,620

 

 


(1)         Decrease due to impact of newly adopted ASC 842. See Footnote 1 in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 for further discussion.

(2)         Includes $1,393 right of use asset/lease liability due to the impact of newly adopted ASC 842. See Footnote 1 in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 for further discussion.

 

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Section 3: EX-99.2 (EX-99.2)

Exhibit 99.2

 

Supplemental Operating & Financial Data June 2019

GRAPHIC

 

TABLE OF CONTENTS COMPANY Company Information & Leadership FORWARD-LOOKING STATEMENTS This supplemental information 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,’’ ‘‘should,’’ ‘‘seeks,’’ ‘‘approximately,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘estimates’’ or ‘‘anticipates,’’ or the negative of those words or similar words. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect our 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 status of the economy, the status of capital markets (including prevailing interest rates), and our access to capital; the income and returns available from investments in health care related real estate, the ability of our borrowers and lessees to meet their obligations to us, our reliance on a few major operators; competition faced by our borrowers and lessees within the health care industry, regulation of the health care industry by federal, state and local governments, changes in Medicare and Medicaid reimbursement amounts (including due to federal and state budget constraints), compliance with and changes to regulations and payment policies within the health care industry, debt that we may incur and changes in financing terms, our ability to continue to qualify as a real estate investment trust, the relative illiquidity of our real estate investments, potential limitations on our remedies when mortgage loans default, and risks and liabilities in connection with properties owned through limited liability companies and partnerships. 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’’ and other information contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in our publicly available filings with the Securities and Exchange Commission. We do 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. 3 INVESTMENTS Execution of Growth Strategy Real Estate Activities Acquisitions and Loan Originations Joint Ventures De Novo Development Expansions and Renovations Lease-Up and Lease-Up History Capital Recycling 4 5 6 7 8 9-10 11 PORTFOLIO Portfolio Overview Portfolio Metrics Portfolio Diversification Geography, MSA, Age of Portfolio Operators Maturity 12 13 14-15 16 17 NON-GAAP INFORMATION This supplemental information contains certain non-GAAP information including EBITDAre, adjusted EBITDAre, FFO, FFO excluding non-recurring items, FAD, FAD excluding non-recurring items, adjusted interest coverage ratio, and adjusted fixed charges coverage ratio. A reconciliation of this non-GAAP information is provided on pages 22, 25 and 26 of this supplemental information, and additional information is available under the “Non-GAAP Financial Measures” subsection under the “Selected Financial Data” section of our website at www.LTCreit.com. FINANCIAL Enterprise Value Debt Metrics Debt Maturity Financial Data Summary Income Statement Data Consolidated Balance Sheets Funds from Operations 18 19 20 21-22 23 24 25-26 GLOSSARY Glossary 27-28 2 SUPPLEMENTAL INFORMATION 2Q 2019

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LEADERSHIP Founded in 1992, LTC Properties, Inc. (NYSE: LTC) is a self-administered real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including preferred equity and mezzanine lending. LTC’s portfolio encompasses Skilled Nursing Facilities (SNF), Assisted Living Communities (ALF), Independent Living Communities (ILF), Memory Care Communities (MC) and combinations thereof. Our main objective is to build and grow a diversified portfolio that creates and sustains shareholder value while providing our stockholders current distribution income. To meet this objective, we seek properties operated by regional operators, ideally offering upside and portfolio diversification (geographic, operator, property type and investment vehicle). For more information, visit www.LTCreit.com. Clint Malin Executive Vice President, Chief Investment Officer Wendy Simpson Chairman, Chief Executive Officer and President Pam Kessler Executive Vice President, CFO and Secretary BOARD OF DIRECTORS Wendy Simpson Boyd Hendrickson James Pieczynski Chairman Lead Independent Director Nominating & Corporate Governance Committee Chairman Audit Committee Chairman Compensation Committee Chairman Devra Shapiro Timothy Triche, MD Doug Korey Senior Vice President, Managing Director of Business Development Peter Lyew Vice President, Director of Taxes Cece Chikhale Senior Vice President, Controller and Treasurer ANALYSTS John Kim Daniel Bernstein Doug Christopher Peter Martin Jordan Sadler Karin Ford Haendel St. Juste Mike Carroll Rich Anderson Chad Vanacore Todd Stender BMO Capital Markets Corp. CapitalOne D.A. Davidson JMP Securities, LLC KeyBanc Capital Markets, Inc. Mitsubishi - MUFG Mizuho Securities RBC Capital Markets Corporation SMBC Nikko Securities Stifel, Nicolaus & Company, Inc. Wells Fargo Securities, LLC Mandi Hogan Vice President, Marketing Gibson Satterwhite Vice President, Asset Management Mike Bowden Vice President, Investments LTC PROPERTIES, INC. 2829 Townsgate Road Suite 350 Westlake Village, CA 91361 805-981-8655 www.LTCreit.com TRANSFER AGENT American Stock Transfer and Trust Company 6201 15th Avenue Brooklyn, NY 11219 866-708-5586 Any opinions, estimates, or forecasts regarding LTC’s performance made by the analysts listed above do not represent the opinions, estimates, and forecasts of LTC or its management. 3 SUPPLEMENTAL INFORMATION 2Q 2019

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EXECUTION OF GROWTH STRATEGY $1.4 Billion in Total Investments Underwritten $450 $375 $300 $225 $150 $103 $94 $75 $25 $23 $68 $28 $22 $9 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019 Development/Expansions/Renovations Total LTC Investment (excludes non-controlling partners’ contributions) INVESTMENTS 4 SUPPLEMENTAL INFORMATION 2Q 2019 Millions $414 $245 $185 $142 $109 $80 $112 $44$12$39

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REAL ESTATE ACTIVITIES – ACQUISITIONS AND LOAN ORIGINATIONS (DOLLAR AMOUNTS IN THOUSANDS) ACQUISITIONS C ON TRAC TUAL I N I TI AL C AS H Y I ELD # OF PROPERTI ES PROPERTY TY PE # BED S / UN I TS D ATE OF C ON S TRUC TI ON PURC H AS E PRI C E AD D I TI ON AL C OMMI TMEN T( 1 ) D ATE LOC ATI ON OPERATOR 6/28 2 MC 88 units Fort Worth & Frisco, TX Koelsch Communities 2014/2015 7.25% 25,200 — 4 255 units $ 40,200 $ 17,508 (1) Commitments may include capital improvement or development allowances for approved projects but excludes incentive payments and contingent payments. For a comprehensive list of our commitments, see our Quarterly Report on Form 10-Q. See page 7 for development activities. We entered into a joint venture (“JV”) to develop, purchase and own seniors housing communities. During 2018, the JV purchased land for the development of a 78-unit ALF/MC community for a total anticipated project cost of $18,108. Additionally during 2018, in a sale-leaseback transaction, the JV purchased an existing operational 89-unit ILF community adjacent to the ALF/MC community we are developing for $14,400. Upon completion of the development project, LTC’s economic interest in the real estate JV is approximately 88%. We account for the JV on a consolidated basis. See page 6 for joint venture contributions. We entered into a JV to purchase an existing operational 74-unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,971 in cash. LTC’s economic interest in the real estate JV is approximately 95%. We account for the JV on a consolidated basis. See page 6 for joint venture contributions. (2) (3) (4) LOAN ORIGINATIONS S TATED I N TERES T RATE # OF PROPERTI ES PROPERTY TY PE # BED S / UN I TS LOAN TY PE MATURI TY D ATE F UN D ED AT ORI G I N ATI ON D ATE LOC ATI ON OPERATOR ORI G I N ATI ON Grand Haven, MI (1) 8/31 1 SNF 126 beds Mortgage Oct-2045 Prestige Healthcare 10,125 7,125 9.41% 3 238 beds/204 units $ 26,053 $ 14,525 East Lansing, MI (3) 2019 6/20 2 SNF 205 beds Mortgage Jan-2045 Prestige Healthcare $ 7,500 $ 7,500 9.41% (1) We funded additional loan proceeds of $7,400 and $7,125 and committed to fund $1,700 and $3,000 in capital improvements, respectively, under an existing mortgage loan. The loan is secured by four SNF properties in Michigan. See page 8 for the detail of remaining commitments for expansions and renovations. Represents a mezzanine loan with a rate of 12.00% annually (8% paid in cash and 4% deferred during the first 46 months) which was originated in fourth quarter 2018 but funded in first quarter 2019. We funded additional loan proceeds of $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41%, fixed for two years, and escalating by 2.25% thereafter. (2) (3) INVESTMENTS 5 SUPPLEMENTAL INFORMATION 2Q 2019 10/16 1 UDP-ALF/MC/ILF 204 units Atlanta, GA Mezzanine Dec-2023 Village Park Senior Living 6,828 — 12.00% (2) 2018 3/1 1 SNF 112 beds Sterling Heights, MI (1) Mortgage Oct-2045 Prestige Healthcare $ 9,100 $ 7,400 8.66% 2019 1/31 1 ALF/MC 74 units Abingdon, VAEnglish Meadows Senior Living 2015 7.40% $ 16,890 (4) $ — 8/30 1 ILF 89 units Medford, ORFields Senior Living 1984/2005 6.75% 14,400 (3) — (3) 2018 5/11 1 UDP(2) 78 units Medford, ORFields Senior Living 2018-2019 7.65% $ 600 (3) $ 17,508 (3)

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REAL ESTATE ACTIVITIES –JOINT VENTURES (DOLLAR AMOUNTS IN THOUSANDS) UNCONSOLIDATED JOINT VENTURES TOTA L F UN D ED TO D A TE C OMMI TMEN T Y EA R PROPERTY TY PE I N V ES TMEN T TY PE MA TURI TY D A TE # BED S / UN I TS I N V ES TMEN T C OMMI TMEN T 2 Q1 9 F UN D I N G REMA I N I N G C OMMI TMEN T LOC A TI ON PROJ EC TS OPERA TOR RETURN 15.00% (1) 2015 Peoria & Yuma, AZ 4 Senior Lifestyle ALF/MC/ILF Preferred Equity N/A 585 units $ 25,650 $ — $ 23,976 $ 1,674 2015 Ocala, FL 1 Canterfield ALF/MC/ILF Mezzanine Nov-2020 15.00% 99 units 2,900 — 2,900 — 684 units $ 28,550 $ — $ 26,876 $ 1,674 (1) Currently, 8% is contractually due in cash and 7% is deferred. Effective 2Q19, the preferred equity investment was placed on cash basis due to delinquency of our preferred return. CONSOLIDATED JOINT VENTURES TOTA L J OI N T V EN TURES C OMMI TMEN T N ON - C ON TROLLI N G I N TERES T C ON TRI B UTI ON LTC F UN D ED TO D A TE LTC REMA I N I N G C OMMI TMEN T ( 1 ) I N V ES TMEN T Y EA R PROPERTY TY PE # B ED S / UN I TS LTC C OMMI TMEN T LOC A TI ON OPERA TOR I N V ES TMEN T PURPOS E 2017 Spartanburg, SC Affinity Living Group ALF Owned Real Estate 87 units 11,660 1,241 10,419 10,324 95 Fields Senior Living(2) 2018 Medford, OR ILF Owned Real Estate 89 units 14,400 2,857 11,543 11,543 — 438 units $ 83,575 $ 8,416 $ 75,159 $ 63,816 $ 11,343 (1) See page 7 and 8 for the development and renovation activities on a consolidated basis. (2) Represents a single joint venture with ownership in two properties. INVESTMENTS 6 SUPPLEMENTAL INFORMATION 2Q 2019 2019 Abingdon, VA English Meadows Senior Living ALF/MC Owned Real Estate 74 units 16,890 919 15,971 15,971 — 167 units 32,508 3,938 28,570 18,409 10,161 2018 Medford, OR Fields Senior Living(2) UDP Owned Real Estate & Development 78 units 18,108 1,081 17,027 6,866 10,161 197 units 34,177 3,559 30,618 29,436 1,182 2017 Cedarburg, WI Tealwood Senior Living UDP Owned Real Estate & Development 110 units $ 22,517 $ 2,318 $ 20,199 $ 19,112 $ 1,087

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REAL ESTATE ACTIVITIES – DE NOVO DEVELOPMENT (DOLLAR AMOUNTS IN THOUSANDS) ES TI MATED C AS H REN T I N C EPTI ON D ATE C ON TRAC TUAL I N I TI AL C AS H Y I ELD TOTAL C API TALI Z ED I N TERES T/ OTH ER TOTAL PROJ EC T BAS I S TO D ATE C OMMI TMEN T Y EAR # OF PROJ EC TS PROPERTY TY PE # BED S / UN I TS I N VES TMEN T C OMMI TMEN T( 1 ) 2 Q1 9 F UN D I N G ( 2 ) REMAI N I N G C OMMI TMEN T( 3 ) LOC ATI ON OPERATOR 1Q21 2018 Medford, OR Fields 1 ALF/MC 7.65% 78 units $ 18,108 $ 1,899 $ 220 $ 8,167 $ 10,161 (1) (2) (3) Includes purchase of land and initial improvement funding, if applicable, and development commitment. In addition to the 2Q19 funding above, we funded $2,042 on a property in Union, KY that was completed in 1Q19 and funded $2,114 on a property in Cedarburg, WI that was completed in 2Q19. See Lease-Up on page 9. Remaining Commitment is calculated as follows: “Investment Commitment” less “Total Project Basis” plus “Total Capitalized Interest/Other.” Weatherly Court Medford, OR Hamilton House Cedarburg, WI INVESTMENTS 7 SUPPLEMENTAL INFORMATION 2Q 2019

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REAL ESTATE ACTIVITIES – EXPANSIONS & RENOVATIONS (DOLLAR AMOUNTS IN THOUSANDS) OWNED ES TI MATED REN T I N C EPTI ON D ATE C ON TRAC TUAL I N I TI AL C AS H Y I ELD TOTAL F UN D ED TO D ATE C OMMI TMEN T Y EAR PROJ EC T TY PE # OF PROJ EC TS PROPERTY TY PE I N VES TMEN T C OMMI TMEN T 2 Q1 9 F UN D I N G REMAI N I N G C OMMI TMEN T LOC ATI ON OPERATOR (1) — 2017 Renovation Spartanburg, SC Affinity Living Group 1 ALF/MC 7.25% $ 1,500 $ 134 $ 1,405 $ 95 (1) — 2017 Renovation Las Vegas, NV Fundamental 1 OTH 9.00% 5,550 172 1,021 4,529 2 $ 7,050 $ 306 $ 2,426 $ 4,624 (1)Rent payment increases upon each funding. MORTGAGE LOANS ES TI MA TED I N TERES T I N C EPTI ON D A TE C ON TRA C TUA L I N I TI A L C A S H Y I ELD TOTA L F UN D ED TO D A TE C OMMI TMEN T Y EA R PROJ EC T TY PE # OF PROJ EC TS PROPERTY TY PE I N VES TMEN T C OMMI TMEN T 2 Q1 9 F UN D I N G REMA I N I N G C OMMI TMEN T LOC A TI ON OPERA TOR (1) — 2015 Expansion Rochester Hills , MI Prestige Healthcare 1 SNF 9.41% $ 11,500 $ 357 $ 2,182 $ 9,318 (2) — 2015 Renovation Farmington & Howell, MI Prestige Healthcare 2 SNF 9.41% 5,000 101 3,787 1,213 (3) — 2016 Renovation East Lansing, MI Prestige Healthcare 2 SNF 9.41% 4,500 267 3,935 565 (2) — 2018 Renovation Sterling Heights, MI Prestige Healthcare 1 SNF 8.66% 1,700 55 873 827 (2) — 2018 Renovation Grand Haven, MI Prestige Healthcare 1 SNF 9.41% 3,000 — 49 2,951 7 $ 25,700 $ 780 $ 10,826 $ 14,874 (1) (2) (3) Commitment is part of the total loan commitment secured by 15 properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding. Commitment is part of the total loan commitment secured by 4 properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding. Interest payment increases upon each funding. INVESTMENTS 8 SUPPLEMENTAL INFORMATION 2Q 2019

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REAL ESTATE ACTIVITIES – LEASE-UP (DOLLAR AMOUNTS IN THOUSANDS) D EV ELOPMEN T C OMMI TMEN T Y EA R C ON TRA C TUA L I N I TI A L C A S H Y I ELD D A TE A C QUI RED D A TE OPEN ED ( 1 ) OC C UPA N C Y A T 6/30/2019 PROJ EC T TY PE # OF PROJ EC TS PROPERTY TY PE # B ED S / UN I TS TOTA L I N V ES TMEN T ( 2 ) LOC A TI ON OPERA TOR 4 242 units/143 beds $ 76,206 (1) Represents date of Certificate of Occupancy. (2) Total Investment for acquisitions include closing costs and total development costs. (3) As a result of Anthem’s default under its master lease in 2017, Anthem is paying partial annual cash rent of $7.5 million throughout December 31, 2019. We receive regular financial performance updates from Anthem and continue to monitor Anthem’s performance obligations under the master lease agreement. (4) Certificate of occupancy was received in February 2019, however licensure was not received until April 2019. INVESTMENTS 9 SUPPLEMENTAL INFORMATION 2Q 2019 Dec-2017 Feb-2019 (4)15% 2017 Development Cedarburg, WI Tealwood 1 ALF/MC/ILF 110 units 7.50% 21,400 Sep-2016 Feb-2019 59% 2016 Development Union, KY Carespring 1 SNF 143 beds 8.50% 23,342 Oct-2016 Jun-2018 52% 2016 Development Oak Lawn, IL Anthem (3)1 MC 66 units — (3)14,997 Oct-2015 Dec-2017 64% 2015 Development Glenview, IL Anthem (3)1 MC 66 units — (3)$ 16,467

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REAL ESTATE ACTIVITIES – LEASE-UP HISTORY # OF MON TH S TO S TA BI LI Z A TI ON PROPERTY TY PE PROJ EC T TY PE # BED S / UN I TS D A TE A C QUI RED D A TE OPEN ED ( 1 ) D A TE S TA BI LI Z ED PROPERTY LOC A TI ON OPERA TOR Highline Place Littleton, CO Anthem MC Development 60 units May-2012 Jul-2013 Sep-2013 2 Willowbrook Place - Kipling Littleton, CO Anthem MC Development 60 units Sep-2013 Aug-2014 Dec-2015 16 Chelsea Place Aurora, CO Anthem MC Development 48 units Sep-2013 Dec-2014 Mar-2016 15 Greenridge Place Westminster, CO Anthem MC Development 60 units Dec-2013 Feb-2015 Feb-2017 24 Harvester Place Burr Ridge, IL Anthem MC Development 66 units Oct-2014 Feb-2016 Feb-2018 24 Vineyard Place Murrieta, CA Anthem MC Development 66 units Sep-2015 Aug-2016 Aug-2018 24 Porter Place Tinley Park, IL Anthem MC Development 66 units May-2015 Jul-2016 Jul-2018 24 Coldspring Transitional Care Center Cold Spring, KY Carespring SNF Development 143 beds Dec-2012 Nov-2014 Jun-2016 19 Hillside Heights Rehabilitation Suites Amarillo, TX Fundamental SNF Redevelopment 120 beds Oct-2011 Jul-2013 Aug-2013 1 Pavilion at Glacier Valley Slinger, WI Fundamental SNF Redevelopment 106 beds Feb-2015 Feb-2014 Feb-2016 24 Pavilion at Creekwood Mansfield, TX Fundamental SNF Acquisition 126 beds Feb-2016 Jul-2015 Feb-2017 12 Carmel Village Memory Care Clovis, CA Generations MC/ILF Acquisition 73 units Jun-2017 Sep-2016 Jun-2018 12 Carmel Village at Clovis Clovis, CA Generations ALF Acquisition 107 units Jun-2017 Nov-2014 Jun-2018 12 Mustang Creek Estates Frisco, TX Mustang Creek Mgmt ALF/MC Development 80 units Dec-2012 Oct-2014 Dec-2015 14 The Oxford Grand Wichita, KS Oxford Senior Living ALF/MC Development 77 units Oct-2012 Oct-2013 Sep-2014 11 Oxford Villa Wichita, KS Oxford Senior Living ILF Development 108 units May-2015 Nov-2016 Nov-2018 24 Oxford Kansas City(2) Kansas City, MO Oxford Senior Living ALF/MC Acquisition 73 units Oct-2017 Aug-2017 Jun-2019 22 Thrive Senior Living (3) Thrive at Deerwood Jacksonville, FL MC Acquisition 60 units Sep-2015 Jul-2015 Jul-2017 24 Thrive Senior Living (3) Thrive at Beckley Creek Louisville, KY MC Acquisition 60 units Apr-2016 Mar-2016 Mar-2018 24 Thrive Senior Living (3) Thrive at Athens Athens, GA ALF/MC Acquisition 70 units Jun-2016 May-2016 May-2018 24 Thrive Senior Living (3) Thrive at Oso Bay Corpus Christi, TX MC Development 56 units Feb-2015 May-2016 May-2018 24 Thrive Senior Living (3) Thrive at Prince Creek Murrells Inlet, SC ALF/MC Development 89 units Feb-2015 Sep-2016 Sep-2018 24 Thrive at West Chester(4) Thrive Senior Living (3) West Chester, OH MC Acquisition 60 units Jun-2017 Apr-2017 Apr-2019 24 (1) (2) (3) Represents date of Certificate of Occupancy. Property meets the definition of stabilized and has achieved the applicable occupancy threshold. The occupancy for Kansas City, MO property at June 30, 2019 was 90%. On June 1, 2019, two properties in Louisville, KY and West Chester, OH were transitioned and are being operated by Trilogy Management Services, a new relationship for LTC. Also, the property located in Corpus Christi, TX transitioned on June 1 and was added to an existing master lease with an affiliate of Veritas, a current operating partner. On July 1, Veritas commenced operations at two properties located in Athens, GA and Murrells Inlet, SC. On August 1, the remaining Thrive-operated property in Jacksonville, FL was transitioned to Affinity, also a current operating partner. Property meets the definition of stabilized but has not yet achieved the applicable occupancy threshold. The occupancy for West Chester, OH property at June 30, 2019 was 75%. (4) INVESTMENTS 10 SUPPLEMENTAL INFORMATION 2Q 2019

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REAL ESTATE ACTIVITIES – CAPITAL RECYCLING On average, LTC has sold approximately $20 million annually Since 2000: • • Total Sales Price of $344.1 million Total Gain of $137.4 million $98 $78 $58 $38 $18 ($2) 2000 2003 2006 2009 2012 2015 YTD 2019 Sales Gain/(Loss) INVESTMENTS 11 SUPPLEMENTAL INFORMATION 2Q 2019 Millions

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PORTFOLIO OVERVIEW (DOLLAR AMOUNTS IN THOUSANDS) TWELVE MON TH S EN D ED J UN E 3 0 , 2 0 1 9 # OF PROPERTI ES G ROS S I N VES TMEN T % OF I N VES TMEN T REN TAL I N C OME ( 1 ) I N TERES T I N C OME ( 2 ) % OF REVEN UES PROPERTY TY PE Assisted Living 105 843,682 49.4% 67,960 — 41.2% Other(4) 1 11,239 0.7% 940 — 0.6% (1) (2) (3) (4) Includes “cash rent,” “straight-line rent” and “amortization of lease incentives” and excludes rental income from properties sold during the twelve months ended June 30, 2019. Includes “interest income from mortgage loans” and excludes interest income from mortgage loans that paid off during the twelve months ended June 30, 2019. Includes a development project consisting of a 78-unit ALF/MC community in Oregon. Includes three parcels of land held-for use and one behavioral health care hospital. Gross Real Property 85.1% $1.4B 30 Operators 28 States 200 Properties 1 Development project 3 Land parcels Loans Receivable 14.9% $0.3B PORTFOLIO 12 SUPPLEMENTAL INFORMATION 2Q 2019 Total200$1,707,224100.0%$135,766$29,039100.0% Under Development(3)—8,1670.5%——— Skilled Nursing94$844,13649.4%$66,866$29,03958.2%

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PORTFOLIO METRICS (TRAILING TWELVE MONTHS THROUGH MARCH 31, 2019 AND DECEMBER 31, 2018) SAME PROPERTY PORTFOLIO STATISTICS (1) ASSISTED LIVING SKILLED NURSING 2.00 100.0% 2.00 1.50 1.00 0.50 0.00 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 1.79 1.77 1.50 1.00 0.50 0.00 90.0% 1.42 1.43 1.29 1.28 80.0% 1.21 1.21 86.3% 85.9% 77.0% 76.9% 70.0% 60.0% 4Q18 1Q19 4Q18 1Q19 Normalized EBITDAR Normalized EBITDARM Occupancy Normalized EBITDAR Normalized EBITDARM Occupancy STABILIZED PROPERTY PORTFOLIO (1) SNF PORTFOLIO PAYOR SOURCE TOTAL PORTFOLIO PAYOR SOURCE 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 50.0% 55.9% 55.9% 47.1% 46.3% 40.0% 30.0% 32.0% 31.8% 31.0% 30.4% 20.0% 21.9% 20.9% 10.0% 13.7% 13.1% 0.0% 4Q18 1Q19 4Q18 1Q19 Private Pay Medicare Medicaid Private Pay Medicare Medicaid (1) Information is from property level operator financial statements which are unaudited and have not been independently verified by LTC. PORTFOLIO 13 SUPPLEMENTAL INFORMATION 2Q 2019 Occupancy % Occupancy %

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PORTFOLIO DIVERSIFICATION – GEOGRAPHY (AS OF JUNE 30, 2019) States in which we have the highest concentration of properties are those states with the highest projected increases in the 80+ population cohort over the next decade. WA 1 ME ND MT 1 OR ID WI 1 MN SD NY 22 WY MI IA 7 PA 1 NE OH 2 NJ CA CO NV IN UT WV VA KS 3 IL MO 4 2 3 2 KY NC AZ OK 2 TN NM SC 5 AR 2 Skilled Nursing (94) Assisted Living (105) Other * (1) Under Development (1) GA 7 AL MS 1 1 TX LA 24 FL 4 Land (3) * Behavioral health care hospital Represents 10 states with the highest projected increases in the 80+ population cohort from year 2020 to year 2030 Source: The American Senior Housing Association, Winter 2018, Population Growth Forecast by State PORTFOLIO 14 SUPPLEMENTAL INFORMATION 2Q 2019 7 18 1 1 5 6 5 1 1 8 5 1 13 5 7 4 4 2 10 1 1

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PORTFOLIO DIVERSIFICATION – GEOGRAPHY (AS OF JUNE 30, 2019, DOLLAR AMOUNTS IN THOUSANDS) Michigan 22 255,498 15.0% 254,555 30.1% — — — — 943 8.4% Colorado 16 114,923 6.7% 8,044 1.0% 106,879 12.7% — — — — Illinois 5 87,548 5.1% — — 87,548 10.4% — — — — Florida 11 72,169 4.2% 32,865 3.9% 39,304 4.7% — — — — Kentucky 3 62,216 3.7% 48,038 5.7% 14,178 1.7% — — — — Total 200 $ 1,707,224 100.0% $ 844,136 100.0% $ 843,682 100.0% $ 8,167 100.0% $ 11,239 100.0% (1)Due to master leases with properties in multiple states, revenue by state is not available. (2)Includes one behavioral health care hospital and three parcels of land. GROSS PORTFOLIO BY MSA (1) AVERAGE PORTFOLIO AGE (1) 60.0% 40 40.0% 30 20 20.0% 10 0.0% MSAs 1-31 MSAs 32-100 MSAs > 100 Cities in Micro-SA Cities not in MSA or Micro-SA 0 Skilled Nursing Assisted Living (1) The MSA rank by population as of July 1, 2018, as estimated by the United States Census Bureau. Approximately 69% of our properties are in the top 100 MSAs. (1) As calculated from construction date or major renovation/expansion date. Includes owned portfolio and mortgage loans secured by 22 SNF properties in Michigan. PORTFOLIO 15 SUPPLEMENTAL INFORMATION 2Q 2019 Years 23 years 12 years 49.4% 19.5%20.6% 7.4%3.1% All Others63413,57424.2%180,29521.3%214,81625.4%8,167100.0%10,29691.6% Kansas1171,4184.2%14,1111.7%57,3076.8%———— Ohio986,2435.1%54,0006.4%32,2433.8%———— California7102,4126.0%22,2602.6%80,1529.5%———— Wisconsin11149,0648.7%13,9461.7%135,11816.0%———— # OFG ROS S S TATE ( 1 )PROPSI N VES TMEN T% S N F%ALF%UD P%OTH ( 2 )% Texas42$292,15917.1%$ 216,02225.6%$ 76,1379.0%$——$——

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PORTFOLIO DIVERSIFICATION – OPERATORS (AS OF JUNE 30, 2019, DOLLAR AMOUNTS IN THOUSANDS) AN N UALI Z ED I N C OME ( 1 ) # OF PROPS G ROS S I N VES TMEN T G AAP ( 2 ) OPERATORS % C AS H % % Senior Lifestyle Corporation 23 19,745 11.7% 17,699 11.1% 190,758 11.2% (4) Anthem Memory Care 11 7,500 4.4% 7,500 4.7% 136,397 8.0% (5) Preferred Care 24 12,155 7.2% 12,155 7.6% 78,039 4.6% Fundamental 7 8,399 5.0% 8,447 5.3% 75,674 4.4% Genesis Healthcare 7 8,154 4.8% 8,111 5.0% 53,404 3.1% 200 $ 169,102 100.0% $ 160,104 100.0% $ 1,707,224 100.0% (1) (2) Represents annualized income for the month of June 2019 except as noted in footnote (2) below. Includes annualized GAAP rent for leased properties, except for Anthem, Senior Care, Preferred Care and Thrive as described below, and annualized interest income from mortgage loans outstanding as of June 30, 2019. In December 2018, Senior Care Centers and numerous of its affiliates and subsidiaries (“Senior Care”) filed for Chapter 11 bankruptcy resulting from lease terminations from certain landlords and on-going operational challenges. Due to the uncertainty regarding the outcome of the bankruptcy process, the amount reflects contractual annual cash rent. Anthem is currently being accounted for on a cash basis. See page 9 for Anthem disclosure. We have agreed to possibly re-lease and/or sell some of the properties currently operated by Preferred Care. Due to the uncertainty regarding the timing and transition of properties to new operator(s), this amount reflects annual cash rent. Included in this amount is $2,891 related to the six properties formerly operated by Thrive. Effective August 1, 2019, all properties have been transitioned to new operators. (3) (4) (5) (6) Other Rehab 2 States PORTFOLIO 16 SUPPLEMENTAL INFORMATION 2Q 2019 Privately Held SNF/ALF/ILF 82 Properties 6 States Privately Held ALF/ILF/MC/SNF Short Term Stays 178 Properties 28 States Privately Held SNF/ALF/ILF/MC Transitional Care & Rehab 100 Properties (3) (3) Privately Held Exclusively MC 12 Properties 4 States NYSE: BKD ILF/ALF/MC Continuing Care 844 Properties 45 States Privately Held SNF/ALF/ILF Specialty Care 65 Properties 10 States Privately Held SNF/ALF/ILF Transitional Care 12 Properties 2 States Privately Held SNF/MC Hospitals & Other Rehab 90 Properties 10 States Privately Held SNF/ALF/ILF 25 Properties 5 States NYSE: GEN SNF/ALF Senior Living Approx 400 Properties 30 States All Others4735,006 (6)20.7%34,57821.6%494,45628.9% Traditions Senior Management78,2754.9%8,3425.2%71,7404.2% Carespring Health Care Management411,1946.6%9,5546.0%102,0386.0% Brookdale Senior Living3513,6488.1%13,6888.5%98,9215.8% Senior Care Centers1114,247 (3)8.4%14,2478.9%138,1098.1% Prestige Healthcare24$30,77918.2%$25,78316.1%$267,68815.7%

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PORTFOLIO MATURITY (AS OF JUNE 30, 2019, DOLLAR AMOUNTS IN THOUSANDS) REN TAL I N C OME( 1 ) % OF TOTAL I N TERES T I N C OME ( 1 ) % OF TOTAL AN N UAL I N C OME( 1 ) % OF TOTAL Y EAR 2020 $ 14,537 10.4% $ — — $ 14,537 8.6% (3) 2021 15,608 11.1% — — 15,608 9.2% 2023 3,332 2.4% — — 3,332 2.0% 2025 9,076 6.5% — — 9,076 5.4% Total $ 139,558 100.0% $ 29,544 100.0% $ 169,102 100.0% 100.0% 80.0% 60.0% 40.0% 20.0% 2.0% 0.0% 0.0% 0.0% 0.4% 0.0% 0.0% 0.0% 0.0% 2020 2021 2022 2023 2024 2025 Thereafter (1) Includes annualized GAAP rent for leased properties, except for Anthem, Senior Care, Preferred Care and Thrive, and annualized interest income from mortgage loans outstanding as of June 30, 2019. $13,648 relates to Brookdale. $12,155 relates to Preferred Care. We have agreed to possibly re-lease and/or sell some of the properties currently operated by Preferred Care. Due to the uncertainty regarding the timing and transition of properties to new operator(s), this amount reflects annual cash rent. (2) (3) PORTFOLIO 17 SUPPLEMENTAL INFORMATION 2Q 2019 LeasesLoans (As a % of Total Annual Income)(1) 54.0% 17.5% 8.6%9.2%2.9%5.4% Thereafter91,36765.5%29,544100.0%120,91171.5% 20244,8673.5%——4,8672.9% 20227710.6%——7710.4% (2) Near Term Lease Maturities: •Five in 2020 with an annualized GAAP rent totaling $14.5 million •Four in 2021 with an annualized GAAP rent totaling $15.6 million As of June 30, 2019, approximately 96% of owned properties are covered under master leases and approximately 95% of rental revenues come from master leases or cross-default leases.

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ENTERPRISE VALUE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND NUMBER OF SHARES) J UN E 3 0 , 2 0 1 9 C API TALI Z ATI ON Bank borrowings - weighted average rate 3.7% (1) $ 146,900 CAPITALIZATION Total debt - weighted average rate 4.3% 675,838 27.1% Common Stock 72.9% No. of shares Closing Price (3) Common stock 39,747,191 $ 45.66 1,814,857 72.9% TOTAL MARKET VALUE $ 2 , 4 9 0 , 6 9 5 100.0% Total Debt 27.1% Add: Non-controlling interest 8,439 (1) Subsequent to June 30, 2019, we borrowed $12,000 under our unsecured revolving line of credit. Accordingly, we have $158,900 outstanding with $441,100 available for borrowing. Represents outstanding balance of $529,800, net of debt issue costs of $862. Subsequent to June 30, 2019, we paid $8,500 of scheduled principal payments. Accordingly, we have $520,438 outstanding under our senior unsecured notes. Closing price of our common stock as reported by the NYSE on June 28, 2019, the last trading day of second quarter 2019. See page 22 for reconciliation of annualized adjusted EBITDAre. (2) (3) (4) FINANCIAL 18 SUPPLEMENTAL INFORMATION 2Q 2019 Debt to Annualized Adjusted EBITDAre (4)4.5x Debt to Enterprise Value27.1% EN TERPRI S E VALUE$ 2 , 4 9 5 , 9 2 7 Less: Cash and cash equivalents(3,207) EQUI TY06/28/19 Senior unsecured notes - weighted average rate 4.5% (2)528,938 D EBT

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DEBT METRICS (DOLLAR AMOUNTS IN THOUSANDS) LINE OF CREDIT LIQUIDITY $600,000 $453,100 $488,000 $503,500 $492,900 $500,000 $400,000 $300,000 $200,000 $100,000 $146,900 $112,000 $107,100 $96,500 $-2Q19 2018 2017 2016 Balance Available LEVERAGE RATIOS COVERAGE RATIOS 8.0 50.0% 36.8% 37.6% 35.2% 36.4% 40.0% 6.0 5.2x 4.9x 4.8x 4.7x 28.0% 28.0% 27.1% 4.5x 4.4x 4.3x 4.2x 30.0% 24.9% 4.0 20.0% 2.0 10.0% 0.0 0.0% Debt to Adjusted EBITDAre Adjusted EBITDAre/ Fixed Charges Debt to Gross Asset Value Debt to Total Enterprise Value 2Q19 2018 2017 2016 2Q19 Annualized 2018 2017 2016 FINANCIAL 19 SUPPLEMENTAL INFORMATION 2Q 2019

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DEBT MATURITY (AS OF JUNE 30, 2019, DOLLAR AMOUNTS IN THOUSANDS) UN S EC URED LI N E OF C RED I T( 1 ) S EN I OR UN S EC URED N OTES ( 2 ) DEBT STRUCTURE % OF TOTAL Y EAR TOTAL Unsecured Line of Credit 21.7% 2020 — 40,160 40,160 5.9% 2022 146,900 48,160 195,060 28.8% 2024 — 49,160 49,160 7.3% Senior Unsecured Notes 78.3% Thereafter — 217,000 217,000 32.1% $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 $0 $0 $0 $0 $0 $0 $-2019 2020 2021 2022 2023 2024 2025 Thereafter (1) (2) (3) Subsequent to June 30, 2019, we borrowed $12,000 under our unsecured revolving line of credit. Accordingly, we have $158,900 outstanding with $441,100 available for borrowing. Reflects scheduled principal payments. Subsequent to June 30, 2019, we paid $8,500 of scheduled principal payments. Accordingly, we have $520,438 outstanding under our senior unsecured notes. Excludes debt issue costs which are included in the senior unsecured notes balance on our Consolidated Balance Sheets shown on page 24. FINANCIAL 20 SUPPLEMENTAL INFORMATION 2Q 2019 Unsecured LineSenior Unsecured Notes $217,000 $146,900 $29,500$40,160$47,160$48,160$49,160$49,160$49,500 Total$146,900$529,800 (3) $676,700 (3) 100.0% 2025—49,50049,5007.3% 2023—49,16049,1607.3% 2021—47,16047,1607.0% 2019$—$29,500$29,5004.3%

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FINANCIAL DATA SUMMARY (DOLLAR AMOUNTS IN THOUSANDS) 6/30/19 12/31/18 12/31/17 12/31/16 Net real estate investments $1,370,405 $1,349,520 $1,309,996 $1,255,503 Total liabilities $711,870 $680,649 $706,922 $654,848 Total equity $787,610 $832,971 $758,648 $740,048 (1) Represents outstanding balance of gross bank borrowings and senior unsecured notes, net of debt issue costs. NON-CASH REVENUE COMPONENTS 3Q19(1) 4Q19(1) 1Q20(1) 2Q20(1) 2Q19 (1) For leases and loans in place at June 30, 2019, assuming no renewals, modifications or replacements, and no new investments are added to our portfolio. Amortization of lease incentives (94) (100) (101) (102) (105) Net $ 2,599 $ 2,413 $ 2,167 $ 2,070 $ 1,983 COMPONENTS OF RENTAL INCOME TH REE MON TH S EN D ED J UN E 3 0 , S I X MON TH S EN D ED J UN E 3 0 , 2019 2018 2019 2018 Revenue related to real estate taxes reimbursed by the operator (2) 3,910 — 8,245 — (1,926) (4) Straight-line rent write-off — — — Total rental income $ 38,277 $ 33,930 $ 75,901 $ 68,435 (1) (2) Increased due to acquisitions, developments and capital improvement projects partially offset by decreased rent from properties sold in 2018. Per the provisions of the new GAAP lease standard, any lessor cost, paid by the lessor and reimbursed by the lessee, must be included as lease payment. We have adopted the new lease standard using a modified retrospective approach as of January 1, 2019. Accordingly, we are not required to report this revenue stream for periods prior to January 1, 2019. Decrease is due to the adoption of the new GAAP lease standard, under which we wrote off straight-line rent and lease incentives related to certain operators due to our assessment that it is not probable that we will collect substantially all of the lease obligation through maturity. Represents the write-off of straight-line rent due to a lease termination and transition of two seniors housing communities to a new operator. (3) (4) FINANCIAL 21 SUPPLEMENTAL INFORMATION 2Q 2019 Amortization of lease incentives (94) (3) (551) (181) (3) (1,091) Straight-line rent 1,275 (3) 2,000 2,513 (3) 5,440 Cash rent $ 33,186 (1) $ 32,481 $ 67,250 (1) $ 64,086 Effective interest 1,418 1,521 1,463 1,419 1,420 Straight-line rent $ 1,275 $ 992 $ 805 $ 753 $ 668 Total debt (1) $675,838 $645,029 $667,502 $609,391 Gross asset value $1,836,503 $1,831,070 $1,774,024 $1,673,238 Gross real estate assets $1,707,224 $1,666,842 $1,618,284 $1,533,679

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FINANCIAL DATA SUMMARY (DOLLAR AMOUNTS IN THOUSANDS) RECONCILIATION OF ANNUALIZED ADJUSTED EBITDAre AND FIXED CHARGES TH REE MON TH S EN D ED 6/30/19 F OR TH E Y EAR EN D ED 12/31/18 12/31/17 12/31/16 (1) (2) Add: Impairment charges — — 1,880 766 Add: Depreciation and amortization 9,860 37,555 37,610 35,932 Add: Capitalized interest 73 1,248 908 1,408 Annualized Fixed Charges $ 31,132 D e bt (ne t o f de bt is s ue c o s t s ) $ 6 7 5 , 8 3 8 $ 6 4 5 , 0 2 9 $ 6 6 7 , 5 0 2 $ 6 0 9 , 3 9 1 4.5x * Debt to Adjusted EBITDAre 4.3x 4.4x 4.2x * Represents annualized 2Q19 results (1) (2) (3) (4) Represents net write-off of $1,880 of straight-line rent and other receivables related to two properties in Overland Park and Wichita, KS. Impairment charge related to a property in Brownsville, TX sold in 2017. Represents net write-off of earn-out liabilities and the related lease incentives. Given we do not have preferred stock, our fixed-charge coverage ratio and interest coverage ratio are the same. FINANCIAL 22 SUPPLEMENTAL INFORMATION 2Q 2019 Adjusted EBITDAre to Fixed Charges4.8x *4.7x4.9x5.2x Annualized Adjusted EBITDAre$150,416 F ixe d c ha r ge s ( 4 ) $7 , 7 8 3$3 1 , 4 4 4$3 0 , 8 5 7$2 7 , 8 5 0 Interest expense$7,710$30,196$29,949$26,442 Adjus t e d EBI TD A re$3 7 , 6 0 4$1 4 9 , 0 7 1$1 5 2 , 1 2 3$1 4 4 , 6 7 3 (Less)/add: Non-recurring items—(3,074) (3) (842) (3) — EBITDAre37,604152,145152,965144,673 Add: Interest expense7,71030,19629,94926,442 Less: Gain on sale of real estate, net(500)(70,682)(3,814)(3,582) Net income$20,534$155,076$87,340$85,115

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INCOME STATEMENT DATA (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) TH REE MON TH S EN D ED J UN E 3 0 , S I X MON TH S EN D ED J UN E 3 0 , 2019 2018 2019 2018 (unaudited) (unaudited) Re v e nue s Interest income from mortgage loans 7,351 7,007 14,662 13,823 Total revenues 46,266 41,472 91,722 83,282 Exp e ns e s Depreciation and amortization 9,860 9,268 19,467 18,712 Transaction costs 200 6 200 10 General and administrative expenses 4,596 4,716 9,167 9,513 Gain on sale of real estate, net 500 48,345 500 48,345 Income from unconsolidated joint ventures 128 726 1,213 1,357 Income allocated to non-controlling interests (88) — (169) — Net income available to common stockholders $ 20,352 $ 68,658 $ 40,606 $ 88,929 Ea r nings p e r c o mmo n s ha r e : Diluted $ 0.51 $ 1.73 $1.02 $2.25 We ight e d a v e r a ge s ha r e s us e d t o c a lc ula t e e a r nings Basic 39,577 39,471 39,555 39,461 FINANCIAL 23 SUPPLEMENTAL INFORMATION 2Q 2019 Dividends declared and paid per common share $ 0.57 $ 0.57 $1.14 $1.14 Diluted 39,769 39,765 39,747 39,750 p e r c o mmo n s ha r e : Basic $ 0.51 $ 1.74 $1.03 $2.25 Income allocated to participating securities (94) (278) (186) (366) Net income attributable to LTC Properties, Inc. 20,446 68,936 40,792 89,295 N e t I nc o me 20,534 68,936 40,961 89,295 Operating Income 20,406 68,210 39,748 87,938 Other operating income: Total expenses 26,360 21,607 52,474 43,689 Property tax expense (see page 21) 3,910 — 8,296 — Provision (recovery) for doubtful accounts 84 (38) 167 (30) Interest expense 7,710 7,655 15,177 15,484 Interest and other income 638 535 1,159 1,024 Rental income (see page 21) $ 38,277 $ 33,930 $ 75,901 $ 68,435

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CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) J UN E 3 0 , 2 0 1 9 D EC EMB ER 3 1 , 2 0 1 8 A S S ETS Investments: (unaudited) (audited) Buildings and improvements 1,320,895 1,290,352 Operating real estate property, net 1,114,559 1,102,751 Real property investments, net 1,118,389 1,106,581 Mortgage loans receivable, net of loan loss reserve: 2019—$2,539; 2018—$2,447 252,016 242,939 Notes receivable, net of loan loss reserve: 2019—$204; 2018—$128 20,157 12,715 Investments, net 1,418,083 1,392,850 Other assets: Restricted cash 2,108 2,108 Interest receivable 23,640 20,732 Lease incentives 2,652 14,443 Total assets $ 1,499,480 $ 1,513,620 Bank borrowings $ 146,900 $ 112,000 Accrued interest 5,290 4,180 Total liabilities 711,870 680,649 Stockholders’ equity: Capital in excess of par value 863,993 862,712 Cumulative distributions (1,338,967) (1,293,383) Non-controlling interests 8,439 7,481 Total liabilities and equity $ 1,499,480 $ 1,513,620 FINANCIAL 24 SUPPLEMENTAL INFORMATION 2Q 2019 Total equity 787,610 832,971 Total LTC Properties, Inc. stockholders’ equity 779,171 825,490 Cumulative net income 1,253,748 1,255,764 Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2019—39,747; 2018—39,657 397 397 EQUI TY Accrued expenses and other liabilities 30,742 31,440 Senior unsecured notes, net of debt issue costs: 2019—$862; 2018—$938 528,938 533,029 LI A B I LI TI ES Prepaid expenses and other assets 3,463 3,985 Straight-line rent receivable, net of allowance for doubtful accounts: 2019—$0; 2018—$746 43,730 73,857 Debt issue costs related to bank borrowings 2,597 2,989 Cash and cash equivalents 3,207 2,656 Investments in unconsolidated joint ventures 27,521 30,615 Real estate investments, net 1,370,405 1,349,520 Properties held-for-sale, net of accumulated depreciation: 2019—$1,916; 2018—$1,916 3,830 3,830 Accumulated depreciation and amortization (332,364) (312,959) Land $ 126,028 $ 125,358

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FUNDS FROM OPERATIONS (UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) RECONCILIATION OF FFO AND FAD TH REE MON TH S EN D ED J UN E 3 0 , S I X MON TH S EN D ED J UN E 3 0 , 2019 2018 2019 2018 Add: Depreciation and amortization Less: Gain on sale of real estate, net 9,860 (500) 9,268 (48,345) 19,467 (500) 18,712 (48,345) Add: Non-recurring items (1)(2) — — 576 — NAREIT FFO attributable to common stockholders $ 29,712 $ 29,581 $ 59,573 $ 59,296 Less: Straight-line rental income (see page 21) (1,275) (2,000) (2,513) (5,440) Add: Other non-cash contra-revenue (1) — — 1,926 — Less: Deferred income from unconsolidated joint ventures (6) (31) (13) (62) Non-cash expense: Add: Non-cash interest related to earn-out liabilities — 125 — 251 Total Non-cash expense 1,550 1,353 2,979 2,596 Funds available for distribution (FAD) 28,657 28,034 59,300 54,657 Funds available for distribution (FAD) excluding non-recurring items $ 28,657 $ 28,034 $ 57,950 $ 54,657 NAREIT Diluted FFO attributable to common stockholders per share $ 0.75 $ 0.75 $ 1.50 $ 1.50 (1)Represents $1,926 write-off of straight-line rent due to a lease termination and transition of two seniors housing communities to a new operator. (2)Represents $1,350 deferred rent repayment from an operator. FINANCIAL 25 SUPPLEMENTAL INFORMATION 2Q 2019 Less: Non-recurring income (2) — — (1,350) — Less: Capitalized interest (73) (293) (333) (552) Add: Non-cash compensation charges 1,623 1,521 3,312 2,897 Total Non-cash income (2,605) (2,900) (3,252) (7,235) Less: Effective interest income from mortgage loans (1,418) (1,420) (2,833) (2,824) Add: Amortization of lease incentives (see page 21) 94 551 181 1,091 Non-cash income: FFO attributable to common stockholders excluding non-recurring items $ 29,712 $ 29,581 $ 60,149 $ 59,296 NAREIT FFO attributable to common stockholders 29,712 29,581 59,573 59,296 GAAP net income available to common stockholders $ 20,352 $ 68,658 $ 40,606 $ 88,929

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FUNDS FROM OPERATIONS (UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) RECONCILIATION OF FFO PER SHARE FFO F A D FFO F A D (1)Represents $1,350 deferred rent repayment from an operator and $1,926 write-off of straight-line rent due to a lease termination and transition of two seniors housing communities to a new operator. (2)Represents $1,350 deferred rent repayment from an operator. FINANCIAL 26 SUPPLEMENTAL INFORMATION 2Q 2019 F OR TH E S I X MON TH S EN D ED J UN E 3 0 ,20192018 20192018 FFO/FAD attributable to common stockholders $ 59,573 $ 59,296 $ 59,300 $ 54,657 Non-recurring one-time items 576 (1) — (1,350) (2) — FFO/FAD attributable to common stockholders excluding non-recurring income 60,149 59,296 57,950 54,657 Effect of dilutive securities: Participating securities 186 366 186 366 Diluted FFO/FAD assuming conversion $ 60,335 $ 59,662 $ 58,136 $ 55,023 Shares for basic FFO/FAD per share 39,555 39,461 39,555 39,461 Effect of dilutive securities: Stock options 5 2 5 2 Performance based stock units (MSU) 187 132 187 132 Participating securities 161 155 161 155 Shares for diluted FFO/FAD per share 39,908 39,750 39,908 39,750 F OR TH E TH REE MON TH S EN D ED J UN E 3 0 ,20192018 20192018 FFO/FAD attributable to common stockholders $ 29,712 $ 29,581 $ 28,657 $ 28,034 Non-recurring one-time items — — — — FFO/FAD attributable to common stockholders excluding non-recurring income 29,712 29,581 28,657 28,034 Effect of dilutive securities: Participating securities 94 — 94 — Diluted FFO/FAD assuming conversion $ 29,806 $ 29,581 $ 28,751 $ 28,034 Shares for basic FFO/FAD per share 39,577 39,471 39,577 39,471 Effect of dilutive securities: Stock options 5 2 5 2 Performance based stock units (MSU) 187 132 187 132 Participating securities 165 — 165 — Shares for diluted FFO/FAD per share 39,934 39,605 39,934 39,605

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GLOSSARY Assisted Living Communities (“ALF”): The ALF portfolio consists of assisted living, independent living, and/or memory care properties. (See Independent Living and Memory Care) Assisted living properties are seniors housing properties serving elderly persons who require assistance with activities of daily living, but do not require the constant supervision skilled nursing properties provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs. Gross Investment: Original price paid for an asset plus capital improvements funded by LTC, without any depreciation deductions. Gross Investment is commonly referred to as undepreciated book value. Independent Living Communities (“ILF”): Seniors housing properties offering a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers. ILFs are also known as retirement communities or seniors apartments. Contractual Lease Rent: Rental revenue as defined by the lease agreement between us and the operator for the lease year. Interest Income: Represents interest income from mortgage loans and other notes. Licensed Beds/Units: The number of beds and/or units that an operator is authorized to operate at seniors housing and long-term care properties. Licensed beds and/or units may differ from the number of beds and/or units in service at any given time. Earnings Before Interest, Tax, Depreciation and Amortization for Real Estate (“EBITDAre”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), EBITDAre is calculated as net income available to common stockholders (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense, (iii) real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate, (v) gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated partnerships and joint ventures. Memory Care Communities (“MC”): Seniors housing properties offering specialized options for seniors with Alzheimer’s disease and other forms of dementia. These facilities offer dedicated care and specialized programming for various conditions relating to memory loss in a secured environment that is typically smaller in scale and more residential in nature than traditional assisted living facilities. These facilities have staff available 24 hours a day to respond to the unique needs of their residents. Funds Available for Distribution (“FAD”): FFO excluding the effects of straight-line rent, amortization of lease costs, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges. Metropolitan Statistical Areas (“MSA”): Based on the U.S. Census Bureau, MSA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A metro area contains a core urban area of 50,000 or more population. MSAs 1 to 31 have a population of 20.3M – 2.1M. MSAs 32 to 100 have a population of 2.1M – 0.6M. MSAs less than 100 have a population of 0.5M – 55K. Cities in a Micro-SA have a population of 216K – 13K. Cities not in a MSA has population of less than 100K. Funds From Operations (“FFO”): As defined by NAREIT, net income available to common stockholders (computed in accordance with U.S. 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. GAAP Lease Yield: GAAP rent divided by the sum of the purchase price and transaction costs. Mezzanine: In certain circumstances, the Company strategically allocates a portion of its capital GAAP Rent: Total rent we will receive as a fixed amount over the initial term of the lease and recognized evenly over that term. GAAP rent recorded in the early years of a lease is higher than the cash rent received and during the later years of the lease, the cash rent received is higher than GAAP rent recognized. GAAP rent is commonly referred to as straight-line rental income. deployment toward mezzanine loans to grow relationships with operating companies that have not typically utilized sale leaseback financing as a component of their capital structure. Mezzanine financing sits between senior debt and common equity in the capital structure, and typically is used to finance development projects or value-add opportunities on existing operational properties. We seek market-based, risk-adjusted rates of return typically between 12-18% with the loan term typically between four to eight years. Security for mezzanine loans can include all or a portion of the following credit enhancements; secured second mortgage, pledge of equity interests and personal/corporate guarantees. Mezzanine loans can be recorded for GAAP purposes as either a loan or joint venture depending upon specifics of the loan terms and related credit enhancements. Gross Asset Value: The carrying amount of total assets after adding back accumulated depreciation and loan loss reserves, as reported in the company’s consolidated financial statements. GLOSSARY 27 SUPPLEMENTAL INFORMATION 2Q 2019

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GLOSSARY Micropolitan Statistical Areas (“Micro-SA”): Based on the U.S. Census Bureau, Micro-SA is a Payor Source: LTC revenue by operator underlying payor source for the period presented. LTC is not a Medicaid or a Medicare recipient. Statistics represent LTC's rental revenues times operators' underlying payor source revenue percentage. Underlying payor source revenue percentage is calculated from property level operator financial statements which are unaudited and have not been independently verified by us. geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A micro area contains an urban core of at least 10,000 population. Mortgage Loan: Mortgage financing is provided on properties based on our established investment underwriting criteria and secured by a first mortgage. Subject to underwriting, additional credit enhancements may be required including, but not limited to, personal/corporate guarantees and debt service reserves. When possible, LTC attempts to negotiate a purchase option to acquire the property at a future time and lease the property back to the borrower. Private Pay: Private pay includes private insurance, HMO, VA, and other payors. Purchase Price: Represents the fair value price of an asset that is exchanged in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets; it is not a forced transaction (for example, a forced liquidation or distress sale). Net Real Estate Assets: Gross real estate investment less accumulated depreciation. Net Real Estate Asset is commonly referred to as Net Book Value (“NBV”). Rental Income: Represents GAAP rent net of amortized lease inducement cost. Non-cash Rental Income: Straight-line rental income and amortization of lease inducement. Same Property Portfolio (“SPP”): Same property statistics allow for the comparative evaluation of performance across a consistent population of LTC’s leased property portfolio and the Prestige Healthcare mortgage loan portfolio. Our SPP is comprised of stabilized properties occupied and operated throughout the duration of the quarter-over-quarter comparison periods presented (excluding assets sold and assets held-for-sale). Accordingly, a property must be occupied and stabilized for a minimum of 15 months to be included in our SPP. Non-cash Compensation Charges: Vesting expense relating to stock options and restricted stock. Normalized EBITDAR Coverage: The trailing twelve month’s earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, and rent divided by the operator’s contractual lease rent. Management fees are imputed at 5% of revenues. Skilled Nursing Properties (“SNF”): Seniors housing properties providing restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many SNFs provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. Normalized EBITDARM Coverage: The trailing twelve month’s earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, rent, and management fees divided by the operator’s contractual lease rent. Occupancy: The weighted average percentage of all beds and/or units that are occupied at a given time. The calculation uses the trailing twelve months and is based on licensed beds and/or units which may differ from the number of beds and/or units in service at any given time. Stabilized: Properties are generally considered stabilized upon the earlier of achieving certain occupancy thresholds (e.g. 80% for SNFs and 90% for ALFs) and, as applicable, 12 months from the date of acquisition or, in the event of a de novo development, redevelopment, major renovations or addition, 24 months from the date the property is first placed in or returned to service, or issuance of certificate of occupancy for properties acquired in lease-up. Operator Financial Statements: Property level operator financial statements which are unaudited and have not been independently verified by us. Under Development Properties (“UDP”): Development projects to construct seniors housing properties. GLOSSARY 28 SUPPLEMENTAL INFORMATION 2Q 2019

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