8-K
LTC PROPERTIES INC (LTC)
8-K
2021-10-28
For: 2021-10-28
View Original
Added on
April 04, 2026
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: October 28, 2021
(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)
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):
| ¨ | Written communications pursuant to Rule 425 under<br>the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under<br>the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under<br>the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under<br>the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
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 |
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 ¨
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. ¨
Item 2.02. — Results of Operations andFinancial Condition
On October 28, 2021, LTC Properties, Inc. announced the operating results for the three months ended September 30, 2021. 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 andExhibits
| 99.1 | Press Release issued October 28, 2021. |
|---|---|
| 99.2 | LTC Properties, Inc. Supplemental Information Package for the period ending September 30, 2021. |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| --- | --- |
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: October 28, 2021 | By: | /s/ WENDY L. SIMPSON |
| Wendy L. Simpson | ||
| Chairman & CEO |
Exhibit 99.1
| ****<br><br> <br>FOR IMMEDIATE RELEASE<br><br> <br><br><br> <br>For more information contact:<br><br> <br>Wendy L. Simpson<br><br> <br>Pam Kessler<br><br> <br>(805) 981-8655 |
|---|
LTC REPORTS 2021 THIRD QUARTER RESULTS
AND DISCUSSES RECENT ACTIVITIES
WESTLAKE VILLAGE, CALIFORNIA, October 28,2021-- LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for the third quarter ended September 30, 2021, as follows:
| Three Months Ended | ||||
|---|---|---|---|---|
| September 30, | ||||
| 2021 | 2020 | |||
| (unaudited) | ||||
| Net income available to common stockholders | $ | 10,909 | $ | 12,114 |
| Diluted earnings per common share | $ | 0.28 | $ | 0.31 |
| NAREIT funds from operations (“FFO”) attributable to common stockholders | $ | 17,669 | $ | 22,791 |
| NAREIT diluted FFO per common share | $ | 0.45 | $ | 0.58 |
| FFO attributable to common stockholders, excluding non-recurring items | $ | 21,564 | $ | 27,890 |
| Fund available for distribution (“FAD”) | $ | 18,373 | $ | 28,188 |
| FAD, excluding non-recurring items | $ | 22,268 | $ | 27,815 |
Third quarter 2021 results were impacted by:
| · | Lower rental income due to unpaid lease obligation from Senior Care Centers, LLC (“Senior Care”)<br>and Senior Care’s parent company, Abri Health Services, LLC (“Abri Health”), Senior Lifestyle Corporation’s (“Senior<br>Lifestyle”) non-payment of rent, abated and deferred rent, and the sale of a skilled nursing center in Washington, as discussed<br>below. The decrease was partially offset by: |
|---|---|
| o | Increased rental income due to a $5.5 million write-off of straight-line rent receivable balances in the<br>third quarter of 2020; |
| --- | --- |
| o | Increased rental income as a result of re-leasing 18 properties previously leased to Senior Lifestyle;<br>and |
| --- | --- |
| o | Increased rental income from completed developments projects, an increase in property tax revenue, annual<br>rent escalations, capital improvement funding and higher rent from Anthem Memory Care. |
| --- | --- |
| · | Lower interest expense primarily due to scheduled principal paydowns and lower interest rates; |
| --- | --- |
1
| · | Higher transaction costs due to the previously announced Senior Care and Abri Health settlement and<br> related fees, as described below; |
|---|---|
| · | Net gain on sale of $2.7 million resulting from the sale of a skilled nursing center in Washington and<br>quarterly evaluation of prior years’ sale holdbacks; and |
| --- | --- |
| · | An impairment loss of $941,000 in the 2020 third quarter related to a closed assisted living community<br>in Florida which was sold in the first quarter of 2021, and $373,000 in insurance proceeds received for damage related to a property sold<br>in the first quarter of 2020. |
| --- | --- |
As previously announced, during the third quarter of 2021, LTC completed the following:
| · | Originated a $1.8 million mortgage loan secured by a parcel of land for the future development of a post-acute<br>skilled nursing center in Missouri, to be operated by an affiliate of Ignite. The mortgage loan term is one year; |
|---|---|
| · | Originated a $4.4 million mezzanine loan for the refinance of an independent living community in Oregon<br>with a regional operator new to LTC. The mezzanine loan term is three years, with two 12-month extension options; |
| --- | --- |
| · | Transitioned six assisted living communities previously operated by Senior Lifestyle as follows: |
| --- | --- |
| o | An assisted living community in Wisconsin to an operator new to LTC under a 10-year lease with three five-year<br>renewal terms. Cash rent under the new master lease is $920,000 in the first lease year, $1.2 million in the second lease year, and $1.3<br>million in the third lease year, escalating 2% annually thereafter; |
| --- | --- |
| o | Two assisted living communities in Pennsylvania to an existing LTC operator under a two-year lease with<br>zero cash rent for the first three months, after which cash rent will be based on mutually agreed upon fair market rent; and |
| --- | --- |
| o | Three assisted living communities in Nebraska to an existing LTC operator under a two-year lease with<br>zero cash rent for the first three months, after which cash rent will be based on mutually agreed upon fair market rent. |
| --- | --- |
| · | Sold a skilled nursing center in Washington for $7.7 million. LTC received proceeds of $7.1 million and<br>recognized a gain on sale of $2.6 million; and |
| --- | --- |
| · | Entered into a settlement agreement with Senior Care and Abri Health, (collectively, the “Lessee”)<br>which was approved by the United States Bankruptcy Court. The settlement provides for a one-time payment of $3.25 million from LTC to<br>the affiliates of the Lessee in exchange for cooperation and assistance in facilitating an orderly transition of 11 skilled nursing centers<br>from the Lessee to affiliates of HMG Healthcare, LLC (“HMG”). The settlement payment and transition occurred subsequent to<br>September 30, 2021. See below for additional information regarding to the transition. |
| --- | --- |
Subsequent to September 30, 2021, LTC completed the following:
| · | As previously announced, funded a $27.0 million mortgage loan secured by a skilled nursing center<br>in Louisiana with a regional operator new to LTC. The mortgage loan has a three-year term, with one 12-month extension option; |
|---|
2
| · | As previously announced, funded a $12.5 million mortgage loan secured by an assisted living and memory<br>care community in Florida operated by a regional operator new to LTC. The mortgage loan term is approximately four years and includes<br>an additional $4.2 million loan commitment for the construction of a memory care addition to the property to be funded at a later date<br>subject to satisfaction of various conditions; |
|---|---|
| · | As previously announced, transitioned 11 properties formerly leased to Senior Care and Abri Health to<br>HMG under a one-year master lease with rent based on cash flows, and payment subject to a deferral of up to six months. LTC and HMG intend<br>to add these 11 properties to a master lease currently existing between them after establishing a stabilized rent rate during the first<br>lease year. LTC also provided HMG a $25 million secured working capital loan maturing in September 2022; and |
| --- | --- |
| · | Provided $438,000 of deferred rent and $240,000 of abated rent in October 2021. LTC has agreed to<br>provide rent deferrals up to $441,000 and abatements up to $240,000 for each of November and December 2021. |
| --- | --- |
Conference Call Information
LTC will conduct a conference call on Friday, October 29, 2021, 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 September 30, 2021. The conference call is accessible by telephone and the internet. Interested parties may access the live conference call via the following:
| Webcast | www.LTCreit.com |
|---|---|
| USA Toll-Free<br>Number | 1-844-200-6205 |
| Canada<br>Toll-Free Number | 1-833-950-0062 |
| Conference<br>Access Code | 404243 |
Additionally, an audio replay of the call will be available one hour after the live call and through November 12, 2021 via the following:
| USA Toll-Free<br>Number | 1-866-813-9430 |
|---|---|
| International<br>Toll-Free Number | +44<br>204 525 0658 |
| Conference<br>Number | 031280 |
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 owns or holds first mortgages on 177 properties in 27 states with 33 operating partners. Based on its gross real estate investments, LTC’s portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties. Learn more at www.LTCreit.com.
3
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)
4
LTC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, amounts in thousands, except pershare amounts)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenues: | ||||||||||||
| Rental income | $ | 29,320 | $ | 30,010 | $ | 91,097 | $ | 88,320 | ||||
| Interest income from mortgage loans | 7,924 | 7,890 | 23,779 | 23,487 | ||||||||
| Interest and other income | 228 | 273 | 1,005 | 1,257 | ||||||||
| Total revenues | 37,472 | 38,173 | 115,881 | 113,064 | ||||||||
| Expenses: | ||||||||||||
| Interest expense | 6,610 | 7,361 | 20,442 | 22,617 | ||||||||
| Depreciation and amortization | 9,462 | 9,766 | 28,847 | 29,232 | ||||||||
| Impairment charges | — | 941 | — | 941 | ||||||||
| Provision (recovery) for credit losses | 68 | (2 | ) | 59 | (1 | ) | ||||||
| Transaction costs | 4,046 | 63 | 4,271 | 197 | ||||||||
| Property tax expense | 3,932 | 3,351 | 11,713 | 11,685 | ||||||||
| General and administrative expenses | 5,318 | 4,814 | 15,688 | 14,494 | ||||||||
| Total expenses | 29,436 | 26,294 | 81,020 | 79,165 | ||||||||
| Other operating income: | ||||||||||||
| Gain on sale of real estate, net | 2,702 | 30 | 7,392 | 44,073 | ||||||||
| Operating income | 10,738 | 11,909 | 42,253 | 77,972 | ||||||||
| Gain from property insurance proceeds | — | 373 | — | 373 | ||||||||
| Loss on unconsolidated joint ventures | — | — | — | (620 | ) | |||||||
| Income from unconsolidated joint ventures | 376 | 56 | 1,041 | 287 | ||||||||
| Net income | 11,114 | 12,338 | 43,294 | 78,012 | ||||||||
| Income allocated to non-controlling interests | (92 | ) | (121 | ) | (271 | ) | (292 | ) | ||||
| Net income attributable to LTC Properties, Inc. | 11,022 | 12,217 | 43,023 | 77,720 | ||||||||
| Income allocated to participating securities | (113 | ) | (103 | ) | (346 | ) | (339 | ) | ||||
| Net income available to common stockholders | $ | 10,909 | $ | 12,114 | $ | 42,677 | $ | 77,381 | ||||
| Earnings per common share: | ||||||||||||
| Basic | $ | 0.28 | $ | 0.31 | $ | 1.09 | $ | 1.97 | ||||
| Diluted | $ | 0.28 | $ | 0.31 | $ | 1.09 | $ | 1.97 | ||||
| Weighted average shares used to calculate earnings per common share: | ||||||||||||
| Basic | 39,177 | 39,061 | 39,149 | 39,218 | ||||||||
| Diluted | 39,177 | 39,112 | 39,149 | 39,269 | ||||||||
| Dividends declared and paid per common share | $ | 0.57 | $ | 0.57 | $ | 1.71 | $ | 1.71 |
5
Supplemental Reporting Measures
FFO and FAD are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by U.S. generally accepted accounting principles (“GAAP”). Investors, analysts and the Company use FFO and FAD as supplemental measures of operating performance. The Company believes FFO and FAD are helpful in evaluating the operating performance of a REIT. Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. 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.
6
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):
| Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | |||||||||||
| 2020 | 2021 | 2020 | |||||||||
| GAAP net income available to common stockholders | 10,909 | $ | 12,114 | $ | 42,677 | $ | 77,381 | ||||
| Add: Impairment charge | — | 941 | — | 941 | |||||||
| Add: Depreciation and amortization | 9,462 | 9,766 | 28,847 | 29,232 | |||||||
| Add: Loss on unconsolidated joint ventures | — | — | — | 620 | |||||||
| Less: Gain on sale of real estate, net | (2,702 | ) | (30 | ) | (7,392 | ) | (44,073 | ) | |||
| NAREIT FFO attributable to common stockholders | 17,669 | 22,791 | 64,132 | 64,101 | |||||||
| Add: Non-recurring items | 3,895 | ^(1)^ | 5,099 | ^(4)^ | 4,653 | ^(6)^ | 22,841 | ^(9)^ | |||
| FFO attributable to common stockholders, excluding non-recurring items | 21,564 | $ | 27,890 | $ | 68,785 | $ | 86,942 | ||||
| NAREIT FFO attributable to common stockholders | 17,669 | $ | 22,791 | $ | 64,132 | $ | 64,101 | ||||
| Non-cash income: | |||||||||||
| Add/(Less): Straight-line rental income | 44 | (228 | ) | (619 | ) | (1,701 | ) | ||||
| Add: Amortization of lease costs | 158 | 108 | 386 | 502 | ^(7)^ | ||||||
| Add: Other non-cash expense | — | 5,472 | ^(2)^ | 758 | ^(5)^ | 23,029 | ^(8)^ | ||||
| Less: Effective interest income from mortgage loans | (1,473 | ) | (1,570 | ) | (4,700 | ) | (4,648 | ) | |||
| Net non-cash income | (1,271 | ) | 3,782 | (4,175 | ) | 17,182 | |||||
| Non-cash expense: | |||||||||||
| Add: Non-cash compensation charges | 1,975 | 1,692 | 5,785 | 5,231 | |||||||
| Less: Capitalized interest | — | (77 | ) | — | (354 | ) | |||||
| Net non-cash expense | 1,975 | 1,615 | 5,785 | 4,877 | |||||||
| Funds available for distribution (FAD) | 18,373 | $ | 28,188 | $ | 65,742 | $ | 86,160 | ||||
| Less: Non-recurring income | 3,895 | ^(1)^ | (373 | )^(3)^ | 3,895 | ^(1)^ | (373 | )^(3)^ | |||
| Funds available for distribution (FAD), excluding non-recurring items | 22,268 | $ | 27,815 | $ | 69,637 | $ | 85,787 | ||||
| (1) Represents the Senior Care and Abri Health settlement<br> and related fees (3,895). | |||||||||||
| (2) Represents the write-off of straight-line rent receivable<br> related to Genesis and another operator (5,472). | |||||||||||
| (3) Represents the gain from insurance proceeds related<br> to a previously sold property (373). | |||||||||||
| (4) Represents the net of (2) and (3) from above. | |||||||||||
| (5) Represents a straight-line rent receivable write-off (758). | |||||||||||
| (6) Represents the sum of (1) and (5) from above. | |||||||||||
| (7) Includes the Senior Lifestyle lease incentives receivable<br> write-off of 185. | |||||||||||
| (8) Represents the Senior Lifestyle straight-line rent<br> receivable write-off (17,557) and (2) from above. | |||||||||||
| (9) Represents the sum of (7) and (8) offset by (3) from<br> above. | |||||||||||
| NAREIT Basic FFO attributable to common stockholders per share | 0.45 | $ | 0.58 | $ | 1.64 | $ | 1.63 | ||||
| NAREIT Diluted FFO attributable to common stockholders per share | 0.45 | $ | 0.58 | $ | 1.64 | $ | 1.63 | ||||
| NAREIT Diluted FFO attributable to common stockholders | 17,669 | $ | 22,894 | $ | 64,132 | $ | 64,101 | ||||
| Weighted average shares used to calculate NAREIT diluted FFO per share attributable to common stockholders | 39,177 | 39,293 | 39,149 | 39,269 | |||||||
| Diluted FFO attributable to common stockholders, excluding non-recurring items | 21,564 | $ | 27,993 | $ | 69,131 | $ | 87,281 | ||||
| Weighted average shares used to calculate diluted FFO, excluding | |||||||||||
| non-recurring items, per share attributable to common stockholders | 39,177 | 39,293 | 39,346 | 39,441 | |||||||
| Diluted FAD, excluding non-recurring items | 22,268 | $ | 27,918 | $ | 69,983 | $ | 86,126 | ||||
| Weighted average shares used to calculate diluted FAD per share | 39,177 | 39,293 | 39,346 | 39,441 |
All values are in US Dollars.
7
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except per share)
| December 31, 2020 | |||||
|---|---|---|---|---|---|
| ASSETS | (unaudited) | (audited) | |||
| Investments: | |||||
| Land | 123,239 | $ | 127,774 | ||
| Buildings and improvements | 1,283,859 | 1,324,227 | |||
| Accumulated depreciation and amortization | (365,182 | ) | (349,643 | ) | |
| Real property investments, net | 1,041,916 | 1,102,358 | |||
| Mortgage loans receivable, net of loan loss reserve: 2021—2,608; 2020—2,592 | 258,829 | 257,251 | |||
| Real estate investments, net | 1,300,745 | 1,359,609 | |||
| Notes receivable, net of loan loss reserve: 2021—189; 2020—146 | 18,675 | 14,465 | |||
| Investments in unconsolidated joint ventures | 19,340 | 11,340 | |||
| Investments, net | 1,338,760 | 1,385,414 | |||
| Other assets: | |||||
| Cash and cash equivalents | 45,459 | 7,772 | |||
| Debt issue costs related to bank borrowings | 688 | 1,324 | |||
| Interest receivable | 37,476 | 32,746 | |||
| Straight-line rent receivable | 24,298 | 24,452 | |||
| Lease incentives | 2,726 | 2,462 | |||
| Prepaid expenses and other assets | 3,681 | 5,316 | |||
| Total assets | 1,453,088 | $ | 1,459,486 | ||
| LIABILITIES | |||||
| Bank borrowings | 134,400 | $ | 89,900 | ||
| Senior unsecured notes, net of debt issue costs: 2021—551; 2020—658 | 527,429 | 559,482 | |||
| Accrued interest | 3,172 | 4,216 | |||
| Accrued expenses and other liabilities | 35,157 | 30,082 | |||
| Total liabilities | 700,158 | 683,680 | |||
| EQUITY | |||||
| Stockholders’ equity: | |||||
| Common stock: 0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2021—39,374; 2020—39,242 | 394 | 392 | |||
| Capital in excess of par value | 854,921 | 852,780 | |||
| Cumulative net income | 1,431,798 | 1,388,775 | |||
| Cumulative distributions | (1,542,596 | ) | (1,474,545 | ) | |
| Total LTC Properties, Inc. stockholders’ equity | 744,517 | 767,402 | |||
| Non-controlling interests | 8,413 | 8,404 | |||
| Total equity | 752,930 | 775,806 | |||
| Total liabilities and equity | 1,453,088 | $ | 1,459,486 |
All values are in US Dollars.
8
Exhibit 99.2
| RENEWAL<br>AND<br>TRANSITION<br>SUPPLEMENTAL<br>OPERATING<br>AND<br>FINANCIAL DATA<br>THIRD QUARTER 2021 |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>FORWARD-LOOKING STATEMENTS<br>This supplemental information contains forward-looking statements within the meaning of Section 27A<br>of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,<br>as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements<br>that are not purely historical may be forward-looking. You can identify some of the forward-looking<br>statements by their use of forward-looking words, such as ‘‘believes,’’ ‘‘expects,’’ ‘‘may,’’ ‘‘will,’’<br> ‘‘should,’’ ‘‘seeks,’’ ‘‘approximately,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘estimates’’ or ‘‘anticipates,’’ or the negative<br>of those words or similar words. Forward- looking statements involve inherent risks and uncertainties<br>regarding events, conditions and financial trends that may affect our future plans of operation,<br>business strategy, results of operations and financial position.A number of important factors could<br>cause actual results to differ materially from those included within or contemplated by such forward-<br>looking statements, including, but not limited to, the status of the economy, the status of capital<br>markets (including prevailing interest rates), and our access to capital; the income and returns<br>available from investments in health care related real estate, the ability of our borrowers and lessees<br>to meet their obligations to us, our reliance on a few major operators; competition faced by our<br>borrowers and lessees within the health care industry, regulation of the health care industry by federal,<br>state and local governments, changes in Medicare and Medicaid reimbursement amounts (including<br>due to federal and state budget constraints), compliance with and changes to regulations and<br>payment policies within the health care industry, debt that we may incur and changes in financing<br>terms, our ability to continue to qualify as a real estate investment trust, the relative illiquidity of our<br>real estate investments, potential limitations on our remedies when mortgage loans default, and risks<br>and liabilities in connection with properties owned through limited liability companies and<br>partnerships. For a discussion of these and other factors that could cause actual results to differ from<br>those contemplated in the forward-looking statements, please see the discussion under ‘‘Risk<br>Factors’’ and other information contained in our Annual Report on Form 10-K for the fiscal year ended<br>December 31, 2020 and in our publicly available filings with the Securities and Exchange Commission.<br>We do not undertake any responsibility to update or revise any of these factors or to announce publicly<br>any revisions to forward-looking statements, whether as a result of new information, future events or<br>otherwise.<br>NON-GAAP INFORMATION<br>This supplemental information contains certain non-GAAP information including EBITDAre, adjusted EBITDAre,<br>FFO, FFO excluding non-recurring items, FAD, FAD excluding non-recurring items, adjusted interest coverage ratio,<br>and adjusted fixed charges coverage ratio.A reconciliation of this non-GAAP information is provided on pages 21,<br>24 and 25 of this supplemental information, and additional information is available under the “Non-GAAP<br>Financial Measures” subsection under the “Selected Financial Data” section of our website at www.LTCreit.com.<br>TABLE OF CONTENTS<br>2<br>COMPANY<br>Company Information & Leadership 3<br>INVESTMENTS<br>Real Estate Activities<br>Investments and Capital Recycling 4<br>Acquisitions, Mortgage & Mezzanine Loan Originations 5<br>Joint Ventures 6<br>Lease-Up and Renovations 7<br>5-Year Lease-Up History 8<br>PORTFOLIO<br>Proforma Overview 9<br>Metrics 10<br>Proforma Diversification<br>Geography, MSA, Age of Portfolio 11-12<br>Operators 13-14<br>Update 15<br>Proforma Maturity 16<br>FINANCIAL<br>Proforma Enterprise Value 17<br>Debt Metrics 18<br>Debt Maturity 19<br>Financial Data Summary 20-21<br>Income Statement Data 22<br>Consolidated Balance Sheets 23<br>Funds from Operations 24-25<br>ESG and GLOSSARY<br>ESG (Environmental, Social & Governance) 26<br>Glossary 27-28 |
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| 3Q 2021 SUPPLEMENTAL REPORT 3<br>Founded in 1992, LTC Properties, Inc.(NYSE: LTC) is a self-administered real<br>estate investment trust (REIT) investing in seniors housing and health care<br>properties primarily through sale-leaseback transactions, mortgage financing and<br>structured finance solutions including preferred equity and mezzanine lending.<br>LTC’s portfolio encompasses Skilled Nursing Facilities (SNF), Assisted Living<br>Communities (ALF), Independent Living Communities (ILF), Memory Care<br>Communities (MC) and combinations thereof. Our main objective is to build and<br>grow a diversified portfolio that creates and sustains shareholder value while<br>providing our stockholders current distribution income. To meet this objective, we<br>seek properties operated by regional operators, ideally offering upside and<br>portfolio diversification (geographic, operator, property type and investment<br>vehicle). For more information, visit www.LTCreit.com.<br>Any opinions, estimates, or forecasts regarding LTC’s performance made<br>by the analysts listed above do not represent the opinions, estimates, and<br>forecasts of LTC or its management.<br>BOARD OF DIRECTORS<br>ANALYSTS<br>WENDY SIMPSON<br>Chairman and<br>Chief Executive Officer<br>PAM KESSLER<br>Co-President,<br>CFO and Secretary<br>CLINT MALIN<br>Co-President and<br>Chief Investment Officer<br>CECE CHIKHALE<br>Executive Vice President,<br>Chief Accounting Officer<br>and Treasurer<br>DOUG KOREY<br>Executive Vice President,<br>Managing Director of<br>Business Development<br>PETER LYEW<br>Vice President,<br>Director of Taxes<br>GIBSON SATTERWHITE<br>Senior Vice President,<br>Asset Management<br>MANDI HOGAN<br>Vice President,<br>Marketing &<br>Investor Relations<br>MIKE BOWDEN<br>Vice President,<br>Investments<br>LEADERSHIP<br>RACHEL SON<br>Vice President<br>and Controller<br>LTC PROPERTIES, INC.<br>2829 Townsgate Road<br>Suite 350<br>Westlake Village, CA 91361<br>805-981-8655<br>www.LTCreit.com<br>TRANSFER AGENT<br>Broadridge Shareholder Services<br>c/o Broadridge Corporate Issuer<br>Solutions<br>1155 Long Island Avenue<br>Edgewood, NY 11717-8309<br>ATTN: IWS<br>866-708-5586<br>WENDY SIMPSON Chairman<br>CORNELIA CHENG ESG Committee Chairman<br>BOYD HENDRICKSON Lead Independent Director<br>JAMES PIECZYNSKI Nominating & Corporate Governance<br>Committee Chairman<br>DEVRA SHAPIRO Audit Committee Chairman<br>TIMOTHY TRICHE, MD Compensation Committee Chairman<br>CONNOR SIVERSKY Berenberg Capital Markets<br>JUAN SANABRIA BMO Capital Markets Corp.<br>DANIEL BERNSTEIN CapitalOne<br>AARON HECHT JMP Securities, LLC<br>JORDAN SADLER KeyBanc Capital Markets, Inc.<br>MIKE CARROLL RBC Capital Markets Corporation<br>RICHARD ANDERSON SMBC Nikko Securities<br>STEVE MANAKER Stifel, Nicolaus & Company, Inc. |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>Million<br>$ 318.8<br>Total Sales (2)<br>(1) Represents total investments.<br>(2) Reflects total sales price.<br>INVESTMENTS I 4<br>Million<br>139.2<br>Total Gains<br>$<br>Billion<br>$ 1.6<br>Total Investments (1)<br>$0<br>$50<br>$100<br>$150<br>$200<br>$250<br>$300<br>$350<br>$400<br>$450<br>2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2021<br>Investments Sales<br>MILLION<br>REAL ESTATE ACTIVITIES – INVESTMENTS AND CAPITAL RECYCLING SINCE 2010<br>(FROM JANUARY 1, 2010 THROUGH OCTOBER 28, 2021) |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) We funded additional loan proceeds of $2,000 under an existing mortgage loan. The incremental funding bears interest at 8.89%, escalating annually by 2.25% thereafter.<br>(2) We entered into a one-year loan agreement secured by a parcel of land for a future development of a post-acute skilled nursing center to be operated by Ignite Medical Resorts.<br>(3) The term is three years, with one 12-month extension option.<br>(4) The term is approximately four years and the additional $4,177 loan commitment for the construction of a memory care addition to the property is to be funded at a later date, subject to satisfaction of various conditions.<br>ACQUISITIONS<br>LOAN ORIGINATIONS<br>5 INVESTMENTS I<br>REAL ESTATE ACTIVITIES – ACQUISITIONS, MORTGAGE & MEZZANINE LOAN ORIGINATIONS<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>CONTRACTUAL<br># OF PROPERTY # BEDS/ DATE OF INITIAL PURCHASE<br>PROPERTIES TYPE UNITS LOCATION OPERATOR CONSTRUCTION CASH YIELD PRICE<br>2020 1/10 1 SNF 140 beds Longview, TX HMG Healthcare 2014 8.50% 13,500 $<br>DATE<br>STATED<br># OF PROPERTY # BEDS/ LOAN MATURITY FUNDED AT REMAINING INTEREST<br>PROPERTIES TYPE UNITS LOCATION TYPE DATE OPERATOR ORIGINATION ORIGINATION COMMITMENT RATE<br>2020 6/2 4 SNF 501 beds Various in MI (1) Mortgage Oct-2045 Prestige Healthcare 2,000 $ 2,000 $ — $ 8.89%<br>2021 9/30 1 OTH N/A St Peters, MO (2) Mortgage Oct-2022 N/A(2) 1,780 $ 1,780 $ — $ 7.50%<br>10/1 1 SNF 189 beds Lafayette, LA (3) Mortgage Oct-2024 Crossroads Area Management 27,347 27,047 300 7.50%<br>10/5 1 ALF/MC 68 units Ocala, FL (4) Mortgage Sep-2025 Pointe Group Care 16,707 12,530 4,177 7.75%<br>3 189 beds/68 units 45,834 $ 41,357 $ 4,477 $<br>DATE<br>MEZZANINE LOANS<br>(1) The term is approximately five years. The initial cash rate is 8.00% with a 12.00% IRR. Our investment represents 5.00% of the total estimated project cost.<br>(2) The term is three years, with two 12-month extension options. The initial rate is 8.00% for the first 18 months then increasing to 10.50% thereafter with a 10.50% IRR. Our investment represents approximately<br>8.00% of the total estimated project cost.<br>PROPERTY MATURITY<br>LOCATION PROPERTIES OPERATOR TYPE DATE<br>2018 Atlanta, GA 1 Galerie Management ALF/MC/ILF Mezzanine Dec-2023 8.00% (1) 204 units 7,461 $<br>2021 Bend, OR 1 BPM Senior Living ILF Mezzanine Oct-2024 8.00% (2) 136 units 4,355 $<br># BEDS/ INVESTMENT<br>YEAR TYPE RETURN UNITS BALANCE<br>COMMITMENT INVESTMENT |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>INVESTMENT PROPERTY # BEDS/<br>YEAR LOCATION OPERATOR TYPE INVESTMENT PURPOSE UNITS<br>2017 Cedarburg, WI Tealwood Senior Living ALF/MC/ILF Owned Real Estate & Development 110 units 22,244 $ 2,305 $ 19,939 $<br>2017 Spartanburg, SC ALG Senior ALF Owned Real Estate 87 units 11,660 1,241 10,419<br>197 units 33,904 3,546 30,358<br>2018 Medford, OR Fields Senior Living (1) ALF/MC Owned Real Estate & Development 78 units 17,871 1,090 16,781<br>2018 Medford, OR Fields Senior Living (1) ILF Owned Real Estate 89 units 14,401 2,858 11,543<br>167 units 32,272 3,948 28,324<br>2019 Abingdon, VA English Meadows Senior Living ALF/MC Owned Real Estate 74 units 16,895 919 15,976<br>438 units 83,071 $ 8,413 $ 74,658 $<br>CONTRIBUTION<br>LTC JOINT VENTURES INTEREST<br>TOTAL NON-CONTROLLING<br>CONTRIBUTION COMMITMENT<br>(1) Represents a single joint venture with ownership in two properties.<br>(1) The initial cash rate is 7.00% increasing to 9.00% in year four until the IRR is 8.00%. After achieving an 8.00% IRR, the cash rate drops to 8.00% with an IRR ranging between of 12.00% and 14.00% depending upon timing of<br>redemption. Our investment represents 15.50% of the total estimated project cost.<br>(2) The initial cash rate is 8.00% with an IRR of 12.00%. Our investment represents 11.60% of the total estimated project cost. The JV provides Koelsch the option to buy out our investment at anytime after August 31, 2023 at the<br>IRR rate.<br>CONSOLIDATED JOINT VENTURES<br>UNCONSOLIDATED JOINT VENTURES<br>INVESTMENTS I 6<br>REAL ESTATE ACTIVITIES – JOINT VENTURES<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>PROPERTY # BEDS/<br>LOCATION PROPERTIES OPERATOR TYPE UNITS<br>2020 Arlington, WA 1 Fields Senior Living UDP-AL/MC Preferred Equity 7.00% (1) 95 units 6,340 $ — $ 6,340 $<br>2020 Vancouver, WA 1 Koelsch Communities UDP-IL/AL Preferred Equity 8.00% (2) 267 units 13,000 — 13,000<br>2 362 units 19,340 $ — $ 19,340 $<br>YEAR TYPECOMMITMENT RETURN<br>TOTAL<br>TO DATE FUNDING<br>COMMITMENT INVESTMENT INVESTMENT 3Q21 FUNDED |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) This commitment is part of a total loan commitment secured by four properties in Michigan. Interest payment increases upon each funding.<br>(1) Total Investment includes land acquisition, closing costs and total development funding and excludes capitalized interest.<br>(2) Certificate of occupancy was received in March 2020 and license was received in May 2020. Due to COVID-19 pandemic, opening was delayed until September 2020.<br>LEASE-UP<br>RENOVATIONS: MORTGAGE LOANS<br>INVESTMENTS I 7<br>REAL ESTATE ACTIVITIES – LEASE-UP AND RENOVATIONS<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>DEVELOPMENT CONTRACTUAL<br>DATE DATE OCCUPANCY AT COMMITMENT PROJECT # OF PROPERTY # BEDS/ INITIAL<br>ACQUIRED OPENED 9/30/2021 YEAR TYPE LOCATION OPERATOR PROJECTS TYPE UNITS CASH YIELD<br>May-2018 Sep-2020 (2) 45% 2018<br><br>Development Medford, OR Fields Senior Living 1 ALF/MC 78 units 7.65% 17,885 $<br>INVESTMENT (1 )<br>TOTAL<br>CONTRACTUAL TOTAL<br>COMMITMENT PROJECT # OF PROPERTY INITIAL INVESTMENT 3Q21 FUNDED REMAINING<br>YEAR TYPE LOCATION OPERATOR PROJECTS TYPE CASH YIELD TO DATE COMMITMENT<br> — (1) 2018 Renovation Grand Haven, MI Prestige Healthcare 1 SNF 9.41% 3,000 $ 18 $ 1,699 $ 1,301 $<br>INCEPTION<br>DATE COMMITMENT FUNDING<br>INTEREST<br>ESTIMATED |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) Represents date of Certificate of Occupancy.<br>(2) Although this property met our definition of stabilization on page 28 based on the time criteria, it did not meet the occupancy threshold.<br>INVESTMENTS I 8<br>REAL ESTATE ACTIVITIES – 5-YEAR LEASE-UP HISTORY<br>PROPERTY PROJECT # BEDS/ DATE DATE DATE<br>PROPERTY LOCATION OPERATOR TYPETYPE UNITS ACQUIRED OPENED (1 ) STABILIZED<br>Greenridge Place Westminster, CO Anthem MC Development 60 units Dec-2013 Feb-2015 Feb-2017 24 (2)<br>Harvester Place Burr Ridge, IL Anthem MC Development 66 units Oct-2014 Feb-2016 Feb-2018 24 (2)<br>Vineyard Place Murrieta, CA Anthem MC Development 66 units Sep-2015 Aug-2016 Aug-2018 24 (2)<br>Porter Place Tinley Park, IL Anthem MC Development 66 units May-2015 Jul-2016 Jul-2018 24 (2)<br>Emerald Place Glenview, IL Anthem MC Development 66 units Oct-2015 Dec-2017 Dec-2019 24 (2)<br>Grace Point Place Oak Lawn, IL Anthem MC Development 66 units Oct-2016 Jun-2018 Jun-2020 24 (2)<br>Boonespring Healthcare Center Union, KY Carespring SNF Development 143 beds Sep-2016 Feb-2019 Dec-2019 10<br>Pavilion at Creekwood Mansfield, TX Fundamental SNF Acquisition 126 beds Feb-2016 Jul-2015 Feb-2017 12<br>Carmel Village Memory Care Clovis, CA Generations MC/ILF Acquisition 73 units Jun-2017 Sep-2016 Jun-2018 12<br>Carmel Village at Clovis Clovis, CA Generations ALF Acquisition 107 units Jun-2017 Nov-2014 Jun-2018 12<br>Ignite Medical Resort Blue Springs Independence, MO Ignite Medical Resorts SNF Development 90 beds Aug-2019 Sep-2020 Jun-2021 9<br>Oxford Villa Wichita, KS Oxford Senior Living ILF Development 108 units May-2015 Nov-2016 Nov-2018 24 (2)<br>Oxford Kansas City Kansas City, MO Oxford Senior Living ALF/MC Acquisition 73 units Oct-2017 Aug-2017 Jun-2019 22<br>Hamilton House Cedarburg, WI Tealwood ALF/MC/ILF Development 110 units Dec-2017 Feb-2019 Feb-2021 24 (2)<br># OF MONTHS<br> TO<br>STABILIZATION |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) Includes cash rent, straight-line rent and amortization of lease incentives and excludes real estate tax reimbursement, straight-line rent write-off and rental income from properties sold during<br>the twelve months ended September 30, 2021. See page 20 for Components of Rental Income.<br>(2) Includes interest income from mortgage loans and contractual interest income in year one for loans originated in September and October of 2021. See page 5 for additional information on loan<br>originations.<br>(3) Includes three parcels of land held-for use, one behavioral health care hospital and one parcel of land securing a first mortgage held for future development of a post-acute skilled nursing center.<br>33<br>Operators 27<br>States 177 Properties<br>Gross Real Property<br>82.4%<br>$1.4B<br>Mortgage Loans Receivable<br>17.6%<br>$0.3B<br>PORTFOLIO I 9<br>PROFORMA PORTFOLIO OVERVIEW<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>*Weighted average maturity – 19.9 years<br>*<br># OF % OF % OF<br>PROPERTY TYPE PROPERTIES INVESTMENT REVENUES<br>Assisted Living 103 855,545 $ 50.1% 58,488 $ 985 $ 39.7%<br>Skilled Nursing 73 839,427 49.1% 55,439 33,745 59.6%<br>Other(3) 1 13,140 0.8% 967 135 0.7%<br>Total 177 1,708,112 $ 100.0% 114,894 $ 34,865 $ 100.0%<br>GROSS<br>INCOME (1 )<br>RENTAL<br> INVESTMENT<br>TWELVE MONTHS ENDED<br>SEPTEMBER 30, 2021<br>INCOME (2 )<br>INTEREST |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) Information is from property level operator financial statements which are unaudited and have not been independently verified by LTC.<br>(2) The coverage and occupancy levels at our properties will be adversely affected if COVID-19 or another pandemic results in infections on a large scale at our properties, early resident move-outs, our operators delay<br>accepting new residents due to quarantines, and/or potential occupants postpone moving to a senior housing facility.<br>(3) Excludes Coronavirus Stimulus Funds. See definition on page 27.<br>ASSISTED LIVING<br>TOTAL PORTFOLIO PAYOR SOURCE SNF PORTFOLIO PAYOR SOURCE<br>SKILLED NURSING<br>1.50 1.61<br>1.98 2.08<br>72.4% 71.3% 60.0%<br>70.0%<br>80.0%<br>90.0%<br>100.0%<br>0.00<br>1.00<br>2.00<br>3.00<br>1Q21 2Q21<br>Occupancy %<br>Normalized EBITDAR Normalized EBITDARM Occupancy<br>0.84 0.86<br>1.04 1.06<br>76.7% 74.4% 70.0%<br>80.0%<br>90.0%<br>100.0%<br>0.00<br>0.50<br>1.00<br>1.50<br>2.00<br>1Q21 2Q21<br>Occupancy %<br>Normalized EBITDAR Normalized EBITDARM Occupancy<br>SNF metrics include CSF, as allocated/reported by operators. Excluding CSF, the 2Q21<br>normalized EBITDAR and EBITDARM coverages were 0.99 and 1.44, respectively, and<br>1.06 and 1.52, respectively, for 1Q21.<br>SAME PROPERTY PORTFOLIO COVERAGE STATISTICS (1)(2)<br>STABILIZED PROPERTY PORTFOLIO (1)(3)<br>ALF metrics include Coronavirus Stimulus Funds (“CSF”) as allocated/reported by operators.<br>Excluding CSF, the 2Q21 normalized EBITDAR and EBITDARM coverages were 0.68 and 0.87,<br>respectively, and 0.72 and 0.91, respectively, for 1Q21. See definition of Coronavirus Stimulus<br>Funds on Page 27.<br>PORTFOLIO I 10<br>PORTFOLIO METRICS<br>(TRAILING TWELVE MONTHS THROUGH JUNE 30, 2021 AND MARCH 31, 2021)<br>59.0%<br>12.0%<br>29.0%<br>0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>Private Pay Medicare Medicaid<br>29.7%<br>20.9%<br>49.4%<br>0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>Private Pay Medicare Medicaid |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>States in which we have some of the highest concentration of properties are states<br>with the highest projected increases in the 80+ population cohort over the next<br>decade.<br>Represents 10 states with the highest projected increases in the 80+ population cohort from year 2020 to year 2030<br>Source: The American Senior Housing Association, Winter 2018, Population Growth Forecast by State<br>CA<br>WA<br>ME<br>NV<br>WY<br>IL<br>AR<br>LA<br>WV<br>ND<br>NY<br>OR<br>AZ<br>NM<br>TX<br>UT<br>ID<br>MT<br>SD<br>NE<br>KS<br>OK<br>MS<br>MN WI<br>FL<br>AL GA<br>SC<br>TN<br>MO<br>IA<br>IN<br>OH<br>PA<br>NJ<br>NC<br>VA<br>CO<br>KY<br>4<br>17<br>1<br>2<br>3<br>1<br>2<br>4<br>2<br>1<br>5<br>6<br>17<br>5<br>2<br>7<br>7<br>3<br>8<br>4<br>13<br>7<br>5<br>1<br>22<br>2<br>5<br>7<br>1<br>1<br>1<br>1<br>2<br>2<br>1 2<br>2<br>MI<br>27 STATES<br>* Behavioral health care<br>hospital<br>SNF (73)<br>ALF (103)<br>OTH*(1)<br>Land (4)<br>PORTFOLIO I 11<br>PROFORMA PORTFOLIO DIVERSIFICATION - GEOGRAPHY<br>(AS OF SEPTEMBER 30, 2021)<br>1 |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>48.9%<br>18.2% 23.1%<br>7.5% 2.3%<br>0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>MSAs<br>1-31<br>MSAs<br>32-100<br>MSAs<br> > 100<br>Cities in<br>Micro-SA<br>Cities not in<br>MSA or<br>Micro-SA<br>23 years<br>14 years<br>0<br>10<br>20<br>30<br>40<br>Skilled Nursing Assisted Living<br>Years<br>(1) The MSA rank by population as of July 1, 2019, as estimated by the United States Census Bureau.<br>Approximately 67% of our properties are in the top 100 MSAs.<br>(1) Due to master leases with properties in various states, revenue by state is not available.<br>(2) Includes three parcels of land held-for use, one behavioral health care hospital and one parcel of land securing a first mortgage held for future development of a post-<br>acute skilled nursing center.<br>(3) Subsequent to September 30, 2021, we funded a $12,530 mortgage loan secured by a 68-unit assisted living and memory care community in Florida. See page 5 for<br>additional information on loan originations.<br>(4) Subsequent to September 30, 2021, we funded a $27,047 mortgage loan secured by a 189-bed skilled nursing center in Louisiana. See page 5 for additional<br>information on loan originations.<br>(1) As calculated from construction date or major<br>renovation/expansion date. Includes owned portfolio and mortgage<br>loans secured by 22 SNF center in Michigan, an ALF/MC community<br>in Florida and a SNF center in Louisiana.<br>GROSS PORTFOLIO BY MSA (1) AVERAGE PORTFOLIO AGE (1)<br>PORTFOLIO I 12<br>PROFORMA PORTFOLIO DIVERSIFICATION – GEOGRAPHY (27 STATES)<br>(AS OF SEPTEMBER 30, 2021, DOLLAR AMOUNTS IN THOUSANDS)<br># OF<br>STATE (1 ) PROPS % ALF % SNF % %<br>Michigan 24 282,022 $ 16.5% 21,422 $ 2.5% 259,657 $ 30.9% 943 $ 7.2%<br>Texas 34 274,204 16.1% 71,394 8.4% 202,810 24.2% — —<br>Wisconsin 8 114,288 6.7% 100,342 11.7% 13,946 1.7% — —<br>California 7 105,997 6.2% 83,735 9.8% 22,262 2.6% — —<br>Colorado 13 104,445 6.1% 104,445 12.2% — — — —<br>Illinois 5 87,934 5.1% 87,934 10.3% — — — —<br>Ohio 9 86,787 5.1% 32,787 3.8% 54,000 6.4% — —<br>Florida(3) 11 81,164 4.7% 48,299 5.6% 32,865 3.9% — —<br>New Jersey 4 62,832 3.7% 62,832 7.3% — — — —<br>Kentucky 3 62,821 3.7% 14,301 1.7% 48,520 5.8% — —<br>All Others(4) 59 445,618 26.1% 228,054 26.7% 205,367 24.5% 12,197 92.8%<br>Total 177 1,708,112 $ 100.0% 855,545 $ 100.0% 839,427 $ 100.0% 13,140 $ 100.0%<br> OTH (2 ) INVESTMENT<br>GROSS |
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| 3Q 2021 SUPPLEMENTAL REPORT PORTFOLIO I 13<br>PROFORMA PORTFOLIO DIVERSIFICATION – 33 OPERATORS<br>(AS OF SEPTEMBER 30, 2021, DOLLAR AMOUNTS IN THOUSANDS)<br>TRADITIONS MGMT Privately Held SNF/ALF/ILF 22 Properties 5 States<br>GENESIS OTC PINK: GENN SNF/ALF<br>Senior Living<br>More than 250<br>Properties 23 States<br>JUNIPER Privately Held ALF/ILF/MC/SNF 27 Properties 4 States<br>RANDALL Privately Held ALF/MC/ILF 20 Properties 3 States<br>FIELDS Privately Held ALF/MC/ILF 4 Properties 2 States<br>PRESTIGE Privately Held SNF/ALF/ILF<br>Other Rehab 78 Properties 5 States<br>BROOKDALE NYSE: BKD ILF/ALF/MC<br>Continuing Care 682 Properties 41 States<br>ANTHEM Privately Held Exclusively MC 12 Properties 5 States<br>CARESPRING Privately Held SNF/ALF/ILF<br>Transitional Care 13 Properties 2 States<br>FUNDAMENTAL Privately Held SNF/MC<br>Hospitals & Other Rehab 80 Properties 8 States<br>(1) Represents annualized cash rent and interest income received for the month of September 2021 for investments as of September 30, 2021.<br>(2) Represents annualized contractual cash rent and interest income prior to abatements for the month of September 2021, except for Anthem, Senior Care/Abri Health and Senior Lifestyle and contractual cash interest<br>income in year one for loans originated in September and October of 2021. See page 14 for operator updates and see page 5 for additional information on loan originations.<br>(3) Represents annualized GAAP rent and interest income prior to abatements for the month of September 2021, except for Anthem, Senior Care/Abri Health and Senior Lifestyle and contractual cash interest income in<br>year one for loans originated in September and October of 2021. See page 14 for operator updates and page 5 for additional information on loan originations.<br>(4) See operator updates on page 14.<br>(5) Includes two mortgage loans totaling $39,577 that were originated subsequent to September 30, 2021 with a weighted average interest rate of 7.7%. See page 5 for additional information on loan originations.<br> ANNUALIZED PROFORMA<br>OPERATORS<br># OF<br>PROPS<br> ACTUAL<br> CASH(1) % % %<br> GROSS<br> INVESTMENT %<br>Prestige Healthcare 24 26,754 $ 20.7% 26,754 $ 18.8% 32,684 $ 20.1% 272,789 $ 16.0%<br>Brookdale Senior Living (4) 35 14,504 11.2% 14,504 10.2% 14,492 8.9% 102,261 6.0%<br>Anthem Memory Care (4) 11 10,800 8.4% 10,800 7.6% 10,800 6.6% 136,483 8.0%<br>Carespring Health Care Management 4 10,242 7.9% 10,242 7.2% 11,185 6.9% 102,520 6.0%<br>Fundamental 7 8,892 6.9% 8,892 6.3% 8,392 5.2% 75,795 4.4%<br>Traditions Senior Management 7 8,722 6.7% 8,722 6.2% 8,257 5.1% 71,742 4.2%<br>Genesis Healthcare (4) 6 8,539 6.6% 8,539 6.0% 8,539 5.3% 50,004 2.9%<br>Juniper Communities 7 6,810 5.3% 6,810 4.8% 6,462 4.0% 92,319 5.4%<br>Randall Residence 8 4,291 3.3% 4,291 3.0% 4,291 2.6% 66,454 3.9%<br>Fields Senior Living 4 3,763 2.9% 3,763 2.6% 3,820 2.4% 64,529 3.8%<br>All Others (4)(5) 64 25,952 20.1% 38,806 27.3% 53,480 32.9% 673,216 39.4%<br>177 129,269 $ 100.0% 142,123 $ 100.0% 162,402 $ 100.0% 1,708,112 $ 100.0%<br>CONTRACTUAL<br> CASH( 2)<br>ANNUALIZED PROFORMA<br> ANNUALIZED<br> GAAP( 3)<br>PROFORMA |
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| 3Q 2021 SUPPLEMENTAL REPORT PORTFOLIO I 14<br>PORTFOLIO DIVERSIFICATION – OPERATOR UPDATE<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>In March 2021, Senior Care Centers, LLC (“Senior Care”) and Senior Care’s parent company, Abri Health Services, LLC (“Abri Health”) (collectively,<br> “Lessee”) failed to pay rent and additional obligations owed under the master lease. Accordingly, we sent a notice of default and applied proceeds from<br>letters of credit to certain obligations owed under the master lease. Furthermore, we sent the Lessee a notice of termination of the master lease to be<br>effective April 17, 2021. On April 16, 2021, the Lessee filed for Chapter 11 bankruptcy. In August 2021, the United States Bankruptcy Court approved<br>a settlement agreement between Lessee and LTC. The settlement provides for, among other things, a one-time payment of $3,250 from LTC to the<br>affiliates of Lessee in exchange for cooperation and assistance in facilitating an orderly transition of the 11 skilled nursing centers from the Lessee and<br>its affiliates to affiliates of HMG Healthcare, LLC which occurred on October 1, 2021.<br>During 2020, an affiliate of Senior Lifestyle (“Senior Lifestyle”) paid us $13,800 of their $18,400 contractual rent and we applied their letter of credit<br>and deposits totaling $3,725 to past due rent of $3,600 and to their outstanding notes receivable of $125. Accordingly, we recognized $17,400 of<br>rental revenue from Senior Lifestyle in 2020. To date in 2021, Senior Lifestyle has not paid rent or its other obligations under the master lease. During<br>2021, we transition 18 assisted living communities previously leased to Senior Lifestyle to five operators. These communities are located in Illinois,<br>Ohio, Wisconsin, Colorado, Pennsylvania and Nebraska. Also, during 2021, we sold three Wisconsin communities and a closed community in Nebraska<br>previously leased to Senior Lifestyle for a combined total of $35,900. We received total proceeds of $34,764 and recorded a net gain on sale of<br>$5,390. We expect to transition the remaining New Jersey community to an existing operator during 4Q21.<br>Rental revenue from Anthem is currently being accounted for on a cash basis due to Anthem’s 2017 default under its master lease. Anthem paid us<br>annual cash rent of $9,900 in 2020, and we anticipate they will pay annualized cash rent of $10,800 through 2021. Anthem is current on agreed upon<br>rent payments through October 2021.<br>Brookdale’s master lease was scheduled for expiration on December 31, 2021. During 1Q21, we extended their term by one year through an amended<br>master lease, with a new maturity date of December 31, 2022. Also, the renewal options under the amended master lease will remain the same which<br>provides three renewal options consisting of a three-year renewal option, a five-year renewal option and a 10-year renewal option. The notice period for<br>the first renewal option is January 1, 2022 to April 30, 2022. During 2020, we extended a $4,000 capital commitment to Brookdale, which is available<br>through December 31, 2021 at a 7% yield. As of September 30, 2021, we have funded $3,340 under this agreement and our remaining commitment<br>is $660. Brookdale is current on rent payments through October 2021.<br>During 2020, we consolidated our two master leases with an operator into one combined master lease and agreed to abate $650 of rent and allow the<br>operator to defer rent as needed through March 31, 2021. During 2021, the combined master lease was amended to extend the rent deferral period<br>through December 31, 2021. The operator deferred rent of $1,196 for 3Q21 and $438 for October 2021. The deferred balance due from this operator<br>is $3,250 as of October 2021. The operator can defer rent up to $441 for each of November and December 2021.<br>Other Operators |
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| 3Q 2021 SUPPLEMENTAL REPORT PORTFOLIO I 15<br>PORTFOLIO UPDATE<br>(AMOUNTS IN THOUSANDS)<br>ABATED RENT<br> ▪ $970 abated rent during 3Q21<br>DELINQUENT RENT<br> ▪ $4,778 delinquent 3Q21 rent: $3,817 related to Senior Care and<br>Abri Health and $961 related to Senior Lifestyle. See page 14 for<br>more detail.<br> ▪ Deferred rent of $1,300, net of repayments, during 3Q21.<br> ▪ As of September 30, 2021, outstanding deferred rent of $4,414<br>related to assisted living communities.<br> ▪ Our rent deferral agreements generally require the deferred rent to be<br>paid within 6 to 36 months.<br> ▪ LTC evaluated deferral requests with close attention to ongoing<br>operations, rent coverage, corporate financial health and liquidity of<br>the operator.<br>DEFERRED RENT<br>(1) Contractual rent and mortgage interest collected, excluding Senior Lifestyle and Senior Care/Abri Health, was 93.5%.<br>CONTRACTUAL RENT AND MORTGAGE INTEREST 3Q21<br>EXCLUDING SENIOR LIFESTYLE (1)<br>Collected, 84.2%(1) - $32,392<br>Abated, 2.5% - $970<br>Deferred, 3.4% - $1,300<br>Delinquent, 9.9% - $3,817<br> ▪ Provided $438 of deferred rent and $240 of rent abatement in<br>October 2021.<br> ▪ Agreed to provide rent deferrals up to $441 and abatements up<br>to $240 for each of November and December 2021.<br>SUBSEQUENT TO SEPTEMBER 30, 2021 |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>9.4%<br>2.7% 4.4% 5.6%<br>10.9%<br>6.9%<br>1.9%<br>36.8%<br>0.1% 0.0% 1.2% 0.6% 0.0% 0.0% 0.0%<br>19.5%<br>0.0%<br>20.0%<br>40.0%<br>60.0%<br>80.0%<br>100.0%<br>2022 2023 2024 2025 2026 2027 2028 Thereafter<br>Leases Loans<br>(As a % of Total Annualized Income)(1)<br>Near Term Lease/Loan Maturities:<br> • Three in 2022 with an annualized GAAP<br>income totaling $15.4 million (2)<br> • Six in 2023 with an annualized GAAP rent<br>totaling $4.3 million<br> • Two in 2024 with an annualized GAAP<br>income totaling $9.1 million<br>As of September 30, 2021, approximately 92%<br>of owned properties are covered under master<br>leases and approximately 91% of rental<br>revenues come from master leases or cross-<br>default leases.<br>(1) Represents annualized GAAP rent and interest income prior to abatements for the month of September 2021, except for Anthem, and includes annualized interest income<br>from mortgage loans originated during 3Q21 through October 28, 2021. See page 14 for an operator update and page 5 for additional information on loan originations.<br>(2) One of the two lease maturities is Brookdale which represents 95% of the annualized GAAP rent maturing in 2022 as of September 30, 2021. See page 14 for Brookdale<br>disclosure.<br>(3) Subsequent to September 30, 2021, we funded a $27,047 mortgage loan secured by a 189-bed skilled nursing center in Louisiana. See page 5 for additional information<br>on loan originations.<br>(4) Subsequent to September 30, 2021, we funded a $12,530 mortgage loan secured by a 68-unit assisted living and memory care community in Florida. See page 5 for<br>additional information on loan originations.<br>PROFORMA PORTFOLIO MATURITY<br>(AS OF SEPTEMBER 30, 2021, DOLLAR AMOUNTS IN THOUSANDS)<br>% OF % OF % OF<br>YEAR TOTAL TOTAL TOTAL<br>2022 15,256 $ (2) 12.0% 135 $ 0.4% 15,391 $ 9.5%<br>2023 4,303 3.4% — — 4,303 2.7%<br>2024 7,094 5.6% 2,057 (3) 5.9% 9,151 5.6%<br>2025 9,068 7.1% 985 (4) 2.8% 10,053 6.2%<br>2026 17,744 13.9% — — 17,744 10.9%<br>2027 11,285 8.8% — — 11,285 6.9%<br>2028 3,067 2.4% — — 3,067 1.9%<br>Thereafter 59,714 46.8% 31,694 90.9% 91,408 56.3%<br>Total 127,531 $ 100.0% 34,871 $ 100.0% 162,402 $ 100.0%<br>GAAP<br>INCOME(1 ) INCOME(1 ) INCOME(1 )<br>RENTAL INTEREST ANNUALIZED<br>PORTFOLIO I 16 |
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| 3Q 2021 SUPPLEMENTAL REPORT<br><br>Bank borrowings - weighted average rate 1.2% 134,400 $<br>Senior unsecured notes, net of debt issue costs - weighted average rate 4.3% (1) 527,429<br>Total debt - weighted average rate 3.7% 661,829 33.0%<br>No. of shares<br>Common stock 39,374,044 34.14 $ (2) 1,344,230 67.0%<br>Total Market Value 1,344,230<br>2,006,059 $ 100.0%<br>Add: Non-controlling interest 8,413<br>Less: Cash and cash equivalents (5,882)<br>2,008,590 $<br>Debt to Enterprise Value 32.9%<br>Debt to Annualized Adjusted EBITDAre (3) 5.8x<br>Proforma Debt to Annualized Adjusted EBITDAre (3) 5.7x<br>ENTERPRISE VALUE<br>EQUITY 10/21/2021<br>Closing Price<br>TOTAL VALUE<br>DEBT<br>CAPITALIZATION SEPTEMBER 30, 2021<br>(1) Represents outstanding balance of $527,980, net of debt issue costs of $551.<br>(2) Closing price of our common stock as reported by the NYSE on October 21, 2021.<br>(3) See page 21 for reconciliation of annualized adjusted EBITDAre.<br>FINANCIAL I 17<br>PROFORMA ENTERPRISE VALUE<br>(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND NUMBER OF SHARES) |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>LEVERAGE RATIOS COVERAGE RATIOS<br>LINE OF CREDIT LIQUIDITY<br>FINANCIAL I 18<br>DEBT METRICS<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>$134,400 $89,900 $93,900 $112,000<br>$465,600 $510,100 $506,100 $488,000<br> $-<br> $100,000<br> $200,000<br> $300,000<br> $400,000<br> $500,000<br> $600,000<br>3Q21 2020 2019 2018<br>Balance Available<br>5.7x<br>4.3x<br>5.8x<br>4.3x 4.4x<br>4.9x 4.6x 4.8x<br>4.3x 4.7x<br>0.0<br>2.0<br>4.0<br>6.0<br>8.0<br>Debt to<br>Adjusted EBITDAre<br>Adjusted EBITDAre/<br>Fixed Charges<br>3Q21 Annualized Proforma 3Q21 Annualized 2020 2019 2018<br>36.3%<br>32.9%<br>36.3%<br>35.3% 35.8%<br>29.8%<br>37.2%<br>28.0%<br>35.2%<br>28.0%<br>0.0%<br>10.0%<br>20.0%<br>30.0%<br>40.0%<br>50.0%<br>Debt to Gross Asset Value Debt to Total Enterprise Value<br>3Q21Proforma 3Q21 2020 2019 2018 |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>Senior Unsecured Notes<br>79.7%<br>Unsecured Line of Credit<br>20.3%<br>$0<br>$134,400<br>$0 $0 $0 $0 $0 $0 $0 $15,000<br>$48,160 $49,160 $49,160 $49,500 $51,500 $54,500 $55,000<br>$156,000<br> $-<br> $100,000<br> $200,000<br> $300,000<br> $400,000<br> $500,000<br> $600,000<br>2021 2022 2023 2024 2025 2026 2027 2028 Thereafter<br>Unsecured Line Senior Unsecured Notes<br>(1) Reflects scheduled principal payments.<br>(2) Excludes debt issue costs which are netted against the principal outstanding in the senior unsecured notes balance on our Consolidated Balance Sheets shown on page 23.<br>DEBT STRUCTURE<br>FINANCIAL I 19<br>DEBT MATURITY<br>(AS OF SEPTEMBER 30, 2021, DOLLAR AMOUNTS IN THOUSANDS)<br>UNSECURED SENIOR<br> LINE OF UNSECURED % OF<br>YEAR CREDIT NOTES (1 ) TOTAL TOTAL<br>2021 — $ 15,000 $ 15,000 $ 2.3%<br>2022 134,400 48,160 182,560 27.6%<br>2023 — 49,160 49,160 7.4%<br>2024 — 49,160 49,160 7.4%<br>2025 — 49,500 49,500 7.5%<br>2026 — 51,500 51,500 7.8%<br>2027 — 54,500 54,500 8.2%<br>2028 — 55,000 55,000 8.3%<br>Thereafter — 156,000 156,000 23.5%<br>Total 134,400 $ 527,980 $ (2) 662,380 $ (2) 100.0% |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) The gross real estate assets and net real estate investments were adjusted to<br>include the two mortgage loans originated subsequent to September 30, 2021<br>totaling $39,577. Gross asset value reflects applying cash on hand at<br>September 30, 2021 for these mortgage loan originations.<br>(2) Includes outstanding gross bank borrowings and senior unsecured notes, net of<br>debt issue costs.<br>(1) For leases and loans in place at September 30, 2021, assuming no renewals,<br>modifications or replacements and no new investments are added to our<br>portfolio.<br>(2) Includes deferred rent repayment.<br>(1) QoQ: Decreased primarily due to Senior Care’s and Abri Health’s unpaid lease<br>obligations, Senior Lifestyle’s non-payment, net of re-leasing properties in the<br>portfolio, and abated and deferred rent, partially offset by increased rent from<br>completed development projects and contractual rent increases. YoY: Decreased<br>primarily due to QoQ explanation and 50% 2021 escalation reduction.<br>(2) QoQ increase and YoY decrease due to the timing of certain operators’ property tax<br>escrow receipts and payment of related taxes.<br>(3) Decrease primarily due to more leases accounted for on a cash basis as compared<br>to the prior period and normal amortization.<br>(4) Represents the write-off of an operator’s straight-line rent receivable during 1Q21.<br>(5) Represents a write-off of straight-line rent receivable relating to Genesis and<br>another operator in 3Q20 and Senior Lifestyle in 2Q20.<br>(6) Decreased primarily due to a write-off of lease incentives relating to Senior Lifestyle<br>in 2Q20.<br>NON-CASH REVENUE COMPONENTS<br>COMPONENTS OF RENTAL INCOME<br>FINANCIAL I 20<br>FINANCIAL DATA SUMMARY<br>(DOLLAR AMOUNTS IN THOUSANDS)<br> 12/31/19 12/31/18<br>Gross real estate assets $ 1,708,112 $ 1,668,535 $ 1,711,844 $ 1,741,230 $ 1,666,842<br>Net real estate investments $ 1,340,322 $ 1,300,745 $ 1,359,609 $ 1,390,915 $ 1,349,520<br>Gross asset value $ 1,821,067 $ 1,821,067 $ 1,811,867 $ 1,864,705 $ 1,831,070<br>Total debt (2) $ 661,829 $ 661,829 $ 649,382 $ 693,388 $ 645,029<br>Total liabilities (2) $ 700,158 $ 700,158 $ 683,680 $ 728,783 $ 680,649<br>Total equity $ 752,930 $ 752,930 $ 775,806 $ 785,426 $ 832,971<br>12/31/20 9/30/21<br> PROFORMA(1 )<br>9/30/2021<br>Cash rent 25,934 $ 32,010 $ (6,076) $ (1) 80,967 $ 98,465 $ (17,498) $ (1)<br>Operator reimbursed real estate tax revenue 3,588 3,352 236 (2) 10,655 11,685 (1,030) (2)<br>Straight-line rent (44) 228 (272) (3) 619 1,701 (1,082) (3)<br>Straight-line rent write-off — (5,472) 5,472 (5) (758) (4) (23,029) (5) 22,271<br>Amortization of lease incentives (158) (108) (50) (386) (502) 116 (6)<br>Total rental income 29,320 $ 30,010 $ (690) $ 91,097 $ 88,320 $ 2,777 $<br>Variance<br>THREE MONTHS ENDED NINE MONTHS ENDED<br>SEPTEMBER 30, SEPTEMBER 30,<br>2021 2020 2021 2020 Variance<br>3Q21 4Q21(1) 1Q22(1) 2Q22(1) 3Q22(1)<br>(44) $ (132) $ (281) $ (2) (761) $ (2) (313) $<br>(158) (184) (184) (184) (184)<br>1,473 1,398 1,348 1,341 1,331<br>1,271 $ 1,082 $ 883 $ 396 $ 834 $<br>Straight-line rent<br>Amortization of lease incentives<br>Effective interest<br> Net |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>RECONCILIATION OF ANNUALIZED ADJUSTED EBITDAre AND FIXED CHARGES<br>FINANCIAL I 21<br>FINANCIAL DATA SUMMARY<br>(DOLLAR AMOUNTS IN THOUSANDS)<br>Net income 11,837 $ 11,114 $ 95,677 $ 80,872 $ 155,076 $<br>Less: Gain on sale of real estate, net (2,702) (2,702) (44,117) (2,106) (70,682)<br>Less: Gain on insurance proceeds — — (373) (3) (2,111) (4) —<br>Add: Loss on unconsolidated joint ventures — — 758 (5) — —<br>Add: Impairment loss from investments — — 3,977 (6) 5,500 (5) —<br>Add: Interest expense 6,747 6,610 29,705 30,582 30,196<br>Add: Depreciation and amortization 9,462 9,462 39,071 39,216 37,555<br>EBITDAre 25,344 24,484 124,698 151,953 152,145<br>Add/(less): Non-recurring one-time items 3,895 (2) 3,895 (2) 22,841 (7) (1,535) (8) (3,074) (9)<br>Adjusted EBITDAre 29,239 $ 28,379 $ 147,539 $ 150,418 $ 149,071 $<br>Interest expense 6,747 $ 6,610 $ 29,705 $ 30,582 $ 30,196 $<br>Add: Capitalized interest — — 354 608 1,248<br>Fixed charges (1 0 ) 6,747 $ 6,610 $ 30,059 $ 31,190 $ 31,444 $<br>Annualized Adjusted EBITDAre 116,956 $ 113,516 $<br>Annualized Fixed Charges 26,988 $ 26,440 $<br>Debt (net of debt issue costs) 661,829 $ 661,829 $ 649,382 $ 693,388 $ 645,029 $<br>Debt to Adjusted EBITDAre 5.7x 5.8x 4.4x 4.6x 4.3x<br>Adjusted EBITDAre to Fixed Charges 4.3x 4.3x 4.9x 4.8x 4.7x<br> 12/31/2019 12/31/2018 12/31/2020 9/30/2021 (1 ) 9/30/21<br>PROFORMA<br>THREE MONTHS ENDED THREE MONTHS ENDED FOR THE YEAR ENDED<br>(1) Proforma includes annualized interest income from mortgage loans originated during 3Q21 through October 28, 2021 and annualized interest expense for the borrowing related to these investments<br>which was reflected on our balance sheet as of September 30, 2021. See page 5 for additional information on loan originations.<br>(2) Represents the Senior Care and Abri Health settlement and related fees. See page 14 for Senior Care and Abri Health disclosure.<br>(3) Represents gain on insurance proceeds related to roof damage at a previously sold property.<br>(4) Represents gain from property insurance proceeds related to a previously sold property in Texas.<br>(5) In 4Q19, we wrote down our investment in an unconsolidated joint venture (“JV”) to its estimated fair value as a result of the JV entering into a contract to sell the properties comprising the JV. In 2Q20,<br>the JV sold the properties and we incurred an additional loss of $758.<br>(6) Represents an impairment loss relating to a 48-unit memory care in Colorado and a 61-unit assisted living community in Florida which was sold in 1Q21.<br>(7) Represents the $23,029 straight-line rent receivable write-off related to Senior Lifestyle, Genesis and another operator and the write-off of Senior Lifestyle’s lease incentives balance offset by (3) above.<br>(8) Represents (4) above and $1,350 deferred rent repayment from an operator offset by $1,926 write-off of straight-line rent due to a lease termination.<br>(9) Represents net write-off of earn-out liabilities and the related lease incentives.<br>(10) Given we do not have preferred stock, our fixed-charge coverage ratio and interest coverage ratio are the same. |
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| 3Q 2021 SUPPLEMENTAL REPORT FINANCIAL I 22<br>INCOME STATEMENT DATA<br>(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)<br>2021 2020 2021 2020<br>Revenues<br>Rental income 29,320 $ 30,010 $ 91,097 $ 88,320 $<br>Interest income from mortgage loans 7,924 7,890 23,779 23,487<br>Interest and other income 228 273 1,005 1,257<br>Total revenues 37,472 38,173 115,881 113,064<br>Expenses<br>Interest expense 6,610 7,361 20,442 22,617<br>Depreciation and amortization 9,462 9,766 28,847 29,232<br>Impairment charge — 941 — 941<br>Provision (recovery) for credit losses 68 (2) 59 (1)<br>Transaction costs 4,046 63 4,271 197<br>Property tax expense 3,932 3,351 11,713 11,685<br>General and administrative expenses 5,318 4,814 15,688 14,494<br>Total expenses 29,436 26,294 81,020 79,165<br>Other Operating Income<br> Gain on sale of real estate, net 2,702 30 7,392 44,073<br>Operating Income 10,738 11,909 42,253 77,972<br> Gain from property insurance proceeds — 373 — 373<br> Loss on unconsolidated joint ventures — — — (620)<br> Income from unconsolidated joint ventures 376 56 1,041 287<br>Net Income 11,114 12,338 43,294 78,012<br>Income allocated to non-controlling interests (92) (121) (271) (292)<br>Net income attributable to LTC Properties, Inc. 11,022 12,217 43,023 77,720<br>Income allocated to participating securities (113) (103) (346) (339)<br>Net income available to common stockholders 10,909 $ 12,114 $ 42,677 $ 77,381 $<br>Earnings per common share:<br>Basic $0.28 $0.31 $1.09 $1.97<br>Diluted $0.28 $0.31 $1.09 $1.97<br>Weighted average shares used to calculate earnings per common share:<br>Basic 39,177 39,061 39,149 39,218<br>Diluted 39,177 39,112 39,149 39,269<br>Dividends declared and paid per common share $0.57 $0.57 $1.71 $1.71<br>THREE MONTHS ENDED<br>SEPTEMBER 30, SEPTEMBER 30,<br>NINE MONTHS ENDED |
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| 3Q 2021 SUPPLEMENTAL REPORT FINANCIAL I 23<br>CONSOLIDATED BALANCE SHEETS<br>(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)<br>ASSETS<br>Investments:<br>Land $ 123,239 $ 127,774<br>Buildings and improvements 1,283,859 1,324,227<br>Accumulated depreciation and amortization (365,182) (349,643)<br>Real property investments, net 1,041,916 1,102,358<br>Mortgage loans receivable, net of loan loss reserve: 2021—$2,608; 2020—$2,592 258,829 257,251<br>Real estate investments, net 1,300,745 1,359,609<br>Notes receivable, net of loan loss reserve: 2021—$189; 2020—$146 18,675 14,465<br>Investments in unconsolidated joint ventures 19,340 11,340<br>Investments, net 1,338,760 1,385,414<br>Other assets:<br>Cash and cash equivalents 45,459 7,772<br>Debt issue costs related to bank borrowings 688 1,324<br>Interest receivable 37,476 32,746<br>Straight-line rent receivable 24,298 24,452<br>Lease incentives 2,726 2,462<br>Prepaid expenses and other assets 3,681 5,316<br>Total assets $ 1,453,088 $ 1,459,486<br>LIABILITIES<br>Bank borrowings $ 134,400 $ 89,900<br>Senior unsecured notes, net of debt issue costs: 2021—$551; 2020—$658 527,429 559,482<br>Accrued interest 3,172 4,216<br>Accrued expenses and other liabilities 35,157 30,082<br>Total liabilities 700,158 683,680<br>EQUITY<br>Stockholders’ equity:<br>Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2021—39,374; 2020—39,242 394 392<br>Capital in excess of par value 854,921 852,780<br>Cumulative net income 1,431,798 1,388,775<br>Cumulative distributions (1,542,596) (1,474,545)<br>Total LTC Properties, Inc. stockholders’ equity 744,517 767,402<br>Non-controlling interests 8,413 8,404<br>Total equity 752,930 775,806<br>Total liabilities and equity $ 1,453,088 $ 1,459,486<br>(unaudited) (audited)<br>DECEMBER 31, 2020 SEPTEMBER 30, 2021 |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>(1) Represents the Senior Care and Abri Health settlement and related fees ($3,895).<br>(2) Represents the write-off of straight-line rent receivable related to Genesis and another operator ($5,472).<br>(3) Represents the gain from insurance proceeds related to a previously sold property ($373).<br>(4) Represents the net of (2) and (3) from above.<br>(5) Represents a straight-line rent receivable write-off ($758).<br>(6) Represents the sum of (1) and (5) from above.<br>(7) Includes the Senior Lifestyle lease incentives write-off of $185.<br>(8) Represents the Senior Lifestyle straight-line rent receivable write-off ($17,557) and (2) from above.<br>(9) Represents the sum of (7) and (8) offset by (3) from above.<br>FINANCIAL I 24<br>FUNDS FROM OPERATIONS – RECONCILIATION OF FFO AND FAD<br>(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)<br>2021 2020 2021 2020<br>GAAP net income available to common stockholders 10,909 $ 12,114 $ 42,677 $ 77,381 $<br>Add: Impairment charge — 941 — 941<br>Add: Depreciation and amortization 9,462 9,766 28,847 29,232<br>Add: Loss on unconsolidated joint ventures — — — 620<br>Less: Gain on sale of real estate, net (2,702) (30) (7,392) (44,073)<br>NAREIT FFO attributable to common stockholders 17,669 $ 22,791 $ 64,132 $ 64,101 $<br>$0.45 $0.58 $1.64 $1.63<br>NAREIT FFO attributable to common stockholders 17,669 $ 22,791 $ 64,132 $ 64,101 $<br>Add: Non-recurring items 3,895 (1) 5,099 (4) 4,653 (6) 22,841 (9)<br>21,564 $ 27,890 $ 68,785 $ 86,942 $<br>NAREIT FFO attributable to common stockholders 17,669 $ 22,791 $ 64,132 $ 64,101 $<br>Non-cash income:<br>Add (less): Straight-line rental income 44 (228) (619) (1,701)<br>Add: Amortization of lease incentives 158 108 386 502 (7)<br>Add: Other non-cash expense — 5,472 (2) 758 (5) 23,029 (8)<br>Less: Effective interest income from mortgage loans (1,473) (1,570) (4,700) (4,648)<br>Net non-cash income (1,271) 3,782 (4,175) 17,182<br>Non-cash expense:<br>Add: Non-cash compensation charges 1,975 1,692 5,785 5,231<br>Less: Capitalized interest — (77) — (354)<br>Net non-cash expense 1,975 1,615 5,785 4,877<br>Funds available for distribution (FAD) 18,373 $ 28,188 $ 65,742 $ 86,160 $<br>Less: Non-recurring income 3,895 (1) (373) (3) 3,895 (1) (373) (3)<br>Funds available for distribution (FAD), excluding non-recurring items 22,268 $ 27,815 $ 69,637 $ 85,787 $<br>FFO attributable to common stockholders, excluding non-recurring items<br>THREE MONTHS ENDED NINE MONTHS ENDED<br>SEPTEMBER 30, SEPTEMBER 30,<br>NAREIT Diluted FFO attributable to common stockholders per share |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>FOR THE THREE MONTHS ENDED SEPTEMBER 30,<br>FFO/FAD attributable to common stockholders 17,669 $ 22,791 $ 18,373 $ 28,188 $<br>Non-recurring one-time items 3,895 (1) 5,099 (2) 3,895 (1) (373) (3)<br>FFO/FAD attributable to common stockholders excluding non-recurring items 21,564 27,890 22,268 27,815<br>Effect of dilutive securities:<br>Participating securities — 103 — 103<br>Diluted FFO/FAD excluding non-recurring items 21,564 $ 27,993 $ 22,268 $ 27,918 $<br>39,177 39,061 39,177 39,061<br>Effect of dilutive securities:<br>Stock options — — — —<br>Performance-based stock units — 51 — 51<br>Participating securities — 181 — 181<br>Shares for diluted FFO/FAD per share 39,177 39,293 39,177 39,293<br>FOR THE NINE MONTHS ENDED SEPTEMBER 30,<br>FFO/FAD attributable to common stockholders 64,132 $ 64,101 $ 65,742 $ 86,160 $<br>Non-recurring one-time items 4,653 (4) 22,841 (5) 3,895 (1) (373) (3)<br>FFO/FAD attributable to common stockholders excluding non-recurring items 68,785 86,942 69,637 85,787<br>Effect of dilutive securities:<br>Participating securities 346 339 346 339<br>Diluted FFO/FAD 69,131 $ 87,281 $ 69,983 $ 86,126 $<br>39,149 39,218 39,149 39,218<br>Effect of dilutive securities:<br>Stock options — — — —<br>Performance based stock units — 51 — 51<br>Participating securities 197 172 197 172<br>Shares for diluted FFO/FAD per share 39,346 39,441 39,346 39,441<br>FAD<br>2021 2020 2021 2020<br>Shares for basic FFO/FAD per share<br>2021 2020 2020<br>Shares for basic FFO/FAD per share<br>FFO FAD<br>2021<br>FFO<br>FINANCIAL I 25<br>FUNDS FROM OPERATIONS – RECONCILIATION OF FFO PER SHARE<br>(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)<br>(1) Represents the Senior Care and Abri Health settlement and related fees.<br>(2) Represents Genesis and another operator straight-line rent receivable write-off. See page 14 for operator disclosures.<br>(3) Represents a gain on insurance proceeds related to roof damage at a previously sold property.<br>(4) Represents a write-off of straight-line rent receivable as a result of transitioning an operator’s lease to cash-basis accounting and (1) above.<br>(5) Represents a write-off of straight-line rent receivable and lease incentives relating to Senior Lifestyle and (2) and (3) above. |
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| 3Q 2021 SUPPLEMENTAL REPORT 26<br>ESG (ENVIRONMENTAL, SOCIAL & GOVERNANCE)<br>At LTC, we recognize the importance of being good corporate<br>stewards through socially responsible and sustainable practices<br>within the confines of a REIT structure holding predominantly triple-<br>net leases. We believe that integrating Environmental, Social and<br>Governance (“ESG”) initiatives into our strategic objectives will<br>contribute to our long-term success.<br>In support of these initiatives, an internal working group in 2020<br>commenced a review of our ESG profile with the goal of enhancing our<br>company’s corporate responsibility and sustainability practices. Our Board<br>has formed a new committee to address diversity and ESG initiatives. We<br>intend to provide more reporting about our ESG initiatives throughout<br>2021 and going forward.<br>Driving Stakeholder Value Through Social Responsibility |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>Assisted Living Communities (“ALF”): The ALF portfolio consists of assisted living, independent<br>living, and/or memory care properties.(See Independent Living and Memory Care) Assisted living<br>properties are seniors housing properties serving elderly persons who require assistance with<br>activities of daily living, but do not require the constant supervision skilled nursing properties<br>provide. Services are usually available 24 hours a day and include personal supervision and<br>assistance with eating, bathing, grooming and administering medication. The facilities provide a<br>combination of housing, supportive services, personalized assistance and health care designed to<br>respond to individual needs.<br>Contractual Lease Rent: Rental revenue as defined by the lease agreement between us and the<br>operator for the lease year.<br>Coronavirus Stimulus Funds (“CSF”): CSF includes funding from various state and federal programs<br>to support healthcare providers in dealing with the challenges of the coronavirus pandemic.<br>Included in CSF are state-specific payments identified by operators as well as federal payments<br>connected to the Paycheck Protection Program and the Provider Relief Fund. CSF is self-reported by<br>operators in unaudited financial statements provided to LTC. Specifically excluded from CSF are the<br>suspension of the Medicare sequestration cut, and increases to the Federal Medical Assistance<br>Percentages (FMAP), both of which are reflected in reported coverage both including and excluding<br>CSF.<br>Earnings Before Interest, Tax, Depreciation and Amortization for Real Estate (“EBITDAre”): As defined<br>by the National Association of Real Estate Investment Trusts (“NAREIT”), EBITDAre is calculated as net<br>income (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense,<br>(iii) real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate,<br>(v) gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated<br>partnerships and joint ventures.<br>Funds Available for Distribution (“FAD”): FFO excluding the effects of straight-line rent, amortization of<br>lease costs, effective interest income, deferred income from unconsolidated joint ventures, non-cash<br>compensation charges, capitalized interest and non-cash interest charges.<br>Funds From Operations (“FFO”):As defined by NAREIT, net income available to common stockholders<br>(computed in accordance with U.S. GAAP) excluding gains or losses on the sale of real estate and<br>impairment write-downs of depreciable real estate plus real estate depreciation and amortization, and<br>after adjustments for unconsolidated partnerships and joint ventures.<br>GAAP Lease Yield: GAAP rent divided by the sum of the purchase price and transaction costs.<br>GAAP Rent: Total rent we will receive as a fixed amount over the initial term of the lease and<br>recognized evenly over that term. GAAP rent recorded in the early years of a lease is higher than the<br>cash rent received and during the later years of the lease, the cash rent received is higher than<br>GAAP rent recognized. GAAP rent is commonly referred to as straight-line rental income.<br>Gross Asset Value: The carrying amount of total assets after adding back accumulated depreciation and<br>loan loss reserves, as reported in the company’s consolidated financial statements.<br>Gross Investment: Original price paid for an asset plus capital improvements funded by LTC, without any<br>depreciation deductions. Gross Investment is commonly referred to as undepreciated book value.<br>Independent Living Communities (“ILF”): Seniors housing properties offering a sense of community and<br>numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and<br>wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency<br>response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game<br>rooms, libraries and activity centers. ILFs are also known as retirement communities or seniors apartments.<br>Interest Income: Represents interest income from mortgage loans and other notes.<br>Licensed Beds/Units: The number of beds and/or units that an operator is authorized to operate at seniors<br>housing and long-term care properties. Licensed beds and/or units may differ from the number of beds<br>and/or units in service at any given time.<br>Memory Care Communities (“MC”): Seniors housing properties offering specialized options for seniors with<br>Alzheimer’s disease and other forms of dementia. These facilities offer dedicated care and specialized<br>programming for various conditions relating to memory loss in a secured environment that is typically<br>smaller in scale and more residential in nature than traditional assisted living facilities. These facilities<br>have staff available 24 hours a day to respond to the unique needs of their residents.<br>Metropolitan Statistical Areas (“MSA”): Based on the U.S. Census Bureau, MSA is a geographic entity<br>defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in<br>collecting, tabulating, and publishing Federal statistics.A metro area contains a core urban area of 50,000<br>or more population. MSAs 1 to 31 have a population of 20.3M– 2.1M. MSAs 32 to 100 have a population<br>of 2.1M– 0.6M. MSAs less than 100 have a population of 0.5M– 55K. Cities in a Micro-SA have a<br>population of 216K– 13K. Cities not in a MSA has population of less than 100K.<br>Mezzanine: In certain circumstances, the Company strategically allocates a portion of its capital<br>deployment toward mezzanine loans to grow relationships with operating companies that have not typically<br>utilized sale leaseback financing as a component of their capital structure. Mezzanine financing sits<br>between senior debt and common equity in the capital structure, and typically is used to finance<br>development projects or value-add opportunities on existing operational properties. We seek market-based,<br>risk-adjusted rates of return typically between 12-18% with the loan term typically between four to eight<br>years. Security for mezzanine loans can include all or a portion of the following credit enhancements;<br>secured second mortgage, pledge of equity interests and personal/corporate guarantees. Mezzanine loans<br>can be recorded for GAAP purposes as either a loan or joint venture depending upon specifics of the loan<br>terms and related credit enhancements.<br>GLOSSARY I 27<br>GLOSSARY |
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| 3Q 2021 SUPPLEMENTAL REPORT<br>Micropolitan Statistical Areas (“Micro-SA”): Based on the U.S. Census Bureau, Micro-SA is a<br>geographic entity defined by the Office of Management and Budget (OMB) for use by Federal<br>statistical agencies in collecting, tabulating, and publishing Federal statistics.A micro area<br>contains an urban core of at least 10,000 population.<br>Mortgage Loan: Mortgage financing is provided on properties based on our established investment<br>underwriting criteria and secured by a first mortgage. Subject to underwriting, additional credit<br>enhancements may be required including, but not limited to, personal/corporate guarantees and<br>debt service reserves. When possible, LTC attempts to negotiate a purchase option to acquire the<br>property at a future time and lease the property back to the borrower.<br>Net Real Estate Assets: Gross real estate investment less accumulated depreciation. Net Real<br>Estate Asset is commonly referred to as Net Book Value (“NBV”).<br>Non-cash Rental Income: Straight-line rental income and amortization of lease inducement.<br>Non-cash Compensation Charges: Vesting expense relating to stock options and restricted stock.<br>Normalized EBITDAR Coverage: The trailing twelve month’s earnings from the operator financial<br>statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes,<br>depreciation, amortization, and rent divided by the operator’s contractual lease rent. Management<br>fees are imputed at 5% of revenues.<br>Normalized EBITDARM Coverage: The trailing twelve month’s earnings from the operator financial<br>statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes,<br>depreciation, amortization, rent, and management fees divided by the operator’s contractual lease<br>rent.<br>Occupancy: The weighted average percentage of all beds and/or units that are occupied at a given<br>time. The calculation uses the trailing twelve months and is based on licensed beds and/or units<br>which may differ from the number of beds and/or units in service at any given time.<br>Operator Financial Statements: Property level operator financial statements which are unaudited<br>and have not been independently verified by us.<br>Payor Source: LTC revenue by operator underlying payor source for the period presented. LTC is not<br>a Medicaid or a Medicare recipient. Statistics represent LTC's rental revenues times operators'<br>underlying payor source revenue percentage. Underlying payor source revenue percentage is<br>calculated from property level operator financial statements which are unaudited and have not been<br>independently verified by us.<br>Private Pay: Private pay includes private insurance, HMO, VA, and other payors.<br>Proforma: Represents amounts as of September 30, 2021 excluding income from Senior Care/Abri Health<br>and Senior Lifestyle and/or includes the interest income from and funded amounts on the two mortgage loans<br>originated through October 28, 2021 and/or interest income from the mortgage loan originated during 3Q<br>2021, as noted on each proforma disclosure. Proforma also includes annualized interest expense for amount<br>borrowed as of September 30, 2021 for the investments made at the end of September through October 28,<br>2021.<br>Purchase Price: Represents the fair value price of an asset that is exchanged in an orderly transaction<br>between market participants at the measurement date. An orderly transaction is a transaction that assumes<br>exposure to the market for a period prior to the measurement date to allow for marketing activities that are<br>usual and customary for transactions involving such assets; it is not a forced transaction (for example, a<br>forced liquidation or distress sale).<br>Rental Income: Represents GAAP rent net of amortized lease inducement cost.<br>Same Property Portfolio (“SPP”): Same property statistics allow for the comparative evaluation of<br>performance across a consistent population of LTC’s leased property portfolio and the Prestige Healthcare<br>mortgage loan portfolio. Our SPP is comprised of stabilized properties occupied and operated throughout<br>the duration of the quarter-over-quarter comparison periods presented (excluding assets sold and assets<br>held-for-sale). Accordingly, a property must be occupied and stabilized for a minimum of 15 months to be<br>included in our SPP. Each property currently, or formerly, operated by Senior Lifestyle and Senior Care has<br>been excluded from SPP and will be added back to SPP 15 months after the date of the transition to the new<br>operator.<br>Skilled Nursing Properties (“SNF”): Seniors housing properties providing restorative, rehabilitative and<br>nursing care for people not requiring the more extensive and sophisticated treatment available at acute care<br>hospitals. Many SNFs provide ancillary services that include occupational, speech, physical, respiratory and<br>IV therapies, as well as sub-acute care services which are paid either by the patient, the patient’s family,<br>private health insurance, or through the federal Medicare or state Medicaid programs.<br>Stabilized: Properties are generally considered stabilized upon the earlier of achieving certain occupancy<br>thresholds (e.g. 80% for SNFs and 90% for ALFs) and, as applicable, 12 months from the date of<br>acquisition/lease transition or, in the event of a de novo development, redevelopment, major renovations or<br>addition, 24 months from the date the property is first placed in or returned to service, or properties acquired<br>in lease-up.<br>Under Development Properties (“UDP”): Development projects to construct seniors housing properties.<br>GLOSSARY I 28<br>GLOSSARY |
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