LTC Properties : Q4 2022 Supplemental Operating and Financial Data

SUPPLEMENTAL

RENEWAL

OPERATING AND

AND TRANSITION

FINANCIAL DATA

FOURTH QUARTER 2022

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, 2022 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.

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.

4Q 2022 SUPPLEMENTAL REPORT

TABLE OF CONTENTS

COMPANY

Company Information & Leadership

3

INVESTMENTS

Real Estate Activities
Investments and Capital Recycling	4
Acquisitions and Financing Receivables	5
Mortgage and Mezzanine Loan Originations	6
Joint Ventures	7
Purchase Options and Renovations & Expansions	8

PORTFOLIO

Proforma Overview	9-10
Proforma Diversification
Operators	11-13
Maturity	14
Geography, MSA, Age of Portfolio	15-16
Real Estate Investments Metrics	17

FINANCIAL

Proforma Enterprise Value	18
Proforma Debt Metrics	19
Proforma Debt Maturity	20
Financial Data Summary	21-22
Consolidated Statements of Income	23
Consolidated Balance Sheets	24
Funds from Operations	25-26

ESG and GLOSSARY

ESG (Environmental, Social & Governance)	27
Glossary	28-29

2

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.

BOARD OF DIRECTORS

WENDY SIMPSON	Chairman
CORNELIA CHENG	ESG Committee Chairman
BOYD HENDRICKSON	Lead Independent Director and
	Nominating & Corporate Governance
	Committee Chairman
JAMES PIECZYNSKI	Investment Committee Chairman
DEVRA SHAPIRO	Audit Committee Chairman
TIMOTHY TRICHE, MD	Compensation Committee Chairman

LEADERSHIP	ANALYSTS

WENDY SIMPSON	PAM KESSLER
Chairman and	Co-President,
Chief Executive Officer	CFO and Secretary

CLINT MALIN	CECE CHIKHALE	DOUG KOREY
Co-President and	Executive Vice President,	Executive Vice President,
Chief Investment Officer	Chief Accounting Officer	Managing Director of
	and Treasurer	Business Development

JUAN SANABRIA	BMO Capital Markets Corp.
TAYO OKUSANYA	Credit Suisse Securities (USA) LLC
AARON HECHT	JMP Securities, LLC
AUSTIN WURSCHMIDT	KeyBanc Capital Markets, Inc.
MIKE CARROLL	RBC Capital Markets Corporation
RICHARD ANDERSON	SMBC Nikko Securities
STEVE MANAKER	Stifel, Nicolaus & Company, Inc.

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.

GIBSON SATTERWHITE	PETER LYEW
Senior Vice President,	Vice President,
Asset Management	Director of Taxes

4Q 2022 SUPPLEMENTAL REPORT

MANDI HOGAN	MIKE BOWDEN	RACHEL SON
Vice President	Vice President,	Vice President
of Marketing,	Investments	and Controller
Investor Relations
and ESG

LTC PROPERTIES, INC.

2829 Townsgate Road Suite 350

Westlake Village, CA 91361 805-981-8655 www.LTCreit.com

TRANSFER AGENT

Broadridge Shareholder Services c/o Broadridge Corporate Issuer Solutions

1155 Long Island Avenue Edgewood, NY 11717-8309

ATTN: IWS

866-708-5586

3

REAL ESTATE ACTIVITIES - INVESTMENTS AND CAPITAL RECYCLING SINCE 2013

(FROM JANUARY 1, 2013 THROUGH FEBRUARY 16, 2023)

Total Investments (1)	Total Sales (2)	Total Gains	Total Loan Payoffs and
JV Redemptions

$ 1.5	$ 386.9	$ 176.7	$ 88.8
Billion	Million	Million	Million

MILLION

$450 $400 $350 $300 $250 $200 $150 $100

$50 $0

2013	2014	2015	2016	2017	2018	2019	2020	2021	2022 YTD 2023
		Investments			Sales				Loan Payoffs & JV Redemptions

1. Represents total investments.
2. Reflects total sales price.

4Q 2022 SUPPLEMENTAL REPORT		INVESTMENTS I	4

REAL ESTATE ACTIVITIES - ACQUISITIONS AND FINANCING RECEIVABLES

(DOLLAR AMOUNTS IN THOUSANDS)

ACQUISITIONS

CO NT RACTUAL

# OF

PROPERTY

# OF

DATE OF

INITIAL

PURCHASE

DATE

PROPERTIES

TYPE

BEDS

LOCATION

OPERATOR

CONSTRUCTION

CASH YIELD

PRICE

2022 4/1

4

SNF

339 beds

Various cities in TX

Ignite Medical Resorts

2017-2018

8.00%

$ 51,534

The lease term is 10 years, with two 5-year renewal options, and contains a purchase option beginning in the sixth lease year through the end of the seventh lease year. The contractual rent in 2023 is approximately $4,300. Rent will increase annually beginning on the third anniversary of the lease by 2.0% to 4.0% based on the change in the Medicare Market Basket Rate. Additionally, we provided a 10-year working capital loan at 8.00% for the first year increasing to 8.25% for the second year then increasing annually with the lease rate. At December 31, 2022, the working capital loan had an outstanding balance of $1,642.

FINANCING RECEIVABLES

CONTRACTUAL

# OF

PROPERTY

# OF

DATE OF

INITIAL

PURCHASE

DATE

PROPERTIES

TYPE

BEDS

LOCATION

OPERATOR

CONSTRUCTION

CASH YIELD

PRICE

2022

9/8

3

SNF

299 beds

Various cities in FL

PruittHealth

2018-2021

7.25%

$ 75,825

(1)

2023

1/5

11

ALF/MC

523 units

Various cities in NC

ALG Senior

1988-2018

7.25%

121,321

(2)

1. We entered into a joint venture ("JV") with an affiliate of PruittHealth, Inc. ("PruittHealth") and contributed $61,661 into the JV that purchased three skilled nursing centers. The JV leased the centers to PruittHealth under a 10-year master lease, with two five-year renewal options and provided PruittHealth with a purchase option, exercisable at the beginning of the fourth year through the end of the fifth year. In accordance with GAAP, the purchased assets are required to be presented as a financing receivable on our Consolidated Balance Sheets, since the JV acquired the centers through a sale-leaseback transaction subject to a lease agreement that contains a purchase option. LTC expects to record consolidated GAAP and cash interest income from financing receivables during 2023 of $5,621 and $5,615, respectively. See Consolidated Joint Ventures on page 7.
2. On January 5, 2023, we entered into a JV with an affiliate of ALG Senior and contributed $117,490 into the JV that purchased 11 assisted living/memory care communities from an affiliate of ALG Senior. The JV leased the communities to an affiliate of ALG Senior under a 10-year master lease, with two five-year renewal options and provided a purchase option to buy up to 50% of the properties at the beginning of the third lease year and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit IRR of 9.0%. The contractual initial cash yield of 7.25% increases to 7.50% in year three then escalates thereafter based on CPI subject to a floor of 2% and ceiling of 4%. In accordance with GAAP, the purchased assets are required to be presented as a financing receivable on our Consolidated Balance Sheets, since the JV acquired the communities through a sale-leaseback transaction subject to a lease agreement that contains a purchase option. LTC expects to record consolidated GAAP and cash interest income from financing receivables during 2023 of $9,706 and $8,796, respectively. See Consolidated Joint Ventures on page 7.

4Q 2022 SUPPLEMENTAL REPORT		INVESTMENTS I	5