What changed in this filing

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Item 1. Financial Statements

2026-05-06 compared with 2025-11-04 · 380 added, 589 removed, 489 unchanged (66% of the section changed)

3 unchanged sentences

(amounts in thousands, except per share)

September 30, 2025

March 31, 2026

December 31, 2025

1 unchanged sentence

Accumulated depreciation and amortization

Operating real estate property, net

Properties held-for-sale, net of accumulated depreciation:

2025—$ 29,284 ;

Real property investments, net

Owned real properties, net

Financing receivables, net of credit loss reserve:

2 unchanged sentences

2026—$ 3,928 ;

Real estate investments, net

Real property investments, net

Notes receivable, net of credit loss reserve:

6 unchanged sentences

Straight-line rent receivable

Lease incentives

Prepaid expenses and other assets

1 unchanged sentence

Term loans, net of debt issue costs:

2026—$ 1,685 ;

Senior unsecured notes, net of debt issue costs:

8 unchanged sentences

2026— 49,779 ;

2024 — 45,511

Capital in excess of par value

13 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Rental income

7 unchanged sentences

Seniors housing operating expenses

Write-off of effective interest receivable

Provision for credit losses

(Recovery) provision for credit losses

Transaction costs

2 unchanged sentences

Total expenses

(Loss) income before unconsolidated joint ventures, real estate dispositions and other items

Income before unconsolidated joint ventures, real estate dispositions and other items

(Loss) gain on sale of real estate, net

Income from unconsolidated joint ventures

Income tax (expense) benefit

Net (loss) income

Income tax provision

Income allocated to non-controlling interests

Net (loss) income attributable to LTC Properties, Inc.

Net income attributable to LTC Properties, Inc.

Income allocated to participating securities

Net (loss) income available to common stockholders

Net income available to common stockholders

Earnings per common share:

6 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Net (loss) income

Unrealized gain (loss) on cash flow hedges before reclassification

Gains reclassified from accumulated other comprehensive income to interest expense

Comprehensive (loss) income

Comprehensive income

Comprehensive income allocated to non-controlling interests

Comprehensive (loss) income attributable to LTC Properties, Inc.

Comprehensive income attributable to LTC Properties, Inc.

LTC PROPERTIES, INC.

9 unchanged sentences

Stock-based compensation expense

Vesting of performance-based stock units

Fair market valuation adjustment for interest rate swap

Cash paid for taxes in lieu of common shares

Non-controlling interest contributions

Acquisitions of non-controlling interest

Non-controlling interest distributions

1 unchanged sentence

( 1,879,101 )

Issuance of common stock

Issuance of restricted stock

Common Stock cash distributions ($ 0.57 per share)

Stock-based compensation expense

Fair market valuation adjustment for interest rate swap

Cash paid for taxes in lieu of common shares

Non-controlling interest contributions

Non-controlling interest distributions

Balance—June 30, 2024

( 1,800,715 )

Issuance of common stock

Issuance of restricted stock

Common Stock cash distributions ($ 0.57 per share)

Stock-based compensation expense

Fair market valuation adjustment for interest rate swap

Cash paid for taxes in lieu of common shares

Non-controlling interest contributions

Non-controlling interest distributions

Balance—September 30, 2024

( 1,825,996 )

Balance—December 31, 2025

7 unchanged sentences

Cash paid for taxes in lieu of common shares

Acquisitions of non-controlling interest

Non-controlling interest distributions

1 unchanged sentence

( 1,988,407 )

Issuance of common stock

Issuance of restricted stock

Common Stock cash distributions ($ 0.57 per share)

Stock-based compensation expense

Vesting of performance-based stock units

Fair market valuation adjustment for interest rate swap

Cash paid for taxes in lieu of common shares

Non-controlling interest distributions

Balance—June 30, 2025

( 1,905,398 )

Issuance of common stock

Common Stock cash distributions ($ 0.57 per share)

Stock-based compensation expense

Net (loss) income

Fair market valuation adjustment for interest rate swap

Non-controlling interest distributions

Balance—September 30, 2025

( 1,931,854 )

LTC PROPERTIES, INC.

1 unchanged sentence

(amounts in thousands, unaudited)

Nine Months Ended September 30,

Three Months Ended March 31,

OPERATING ACTIVITIES:

3 unchanged sentences

Loss (gain) on sale of real estate, net

Income tax benefit

Income tax provision

Income from unconsolidated joint ventures

4 unchanged sentences

Amortization of lease incentives

Write-off of effective interest receivable

Provision for credit losses

Application of interest reserve

(Recovery) provision for credit losses

Amortization of debt issue costs

1 unchanged sentence

Change in operating assets and liabilities

Lease incentives funded

Increase in interest receivable

Increase (decrease) in accrued interest payable

Decrease in accrued interest payable

Net change in other assets and liabilities

5 unchanged sentences

Investment in financing receivables

Proceeds from the sale of properties accounted for as a financing receivable

Investment in real estate mortgage loans receivable

2 unchanged sentences

Proceeds from liquidation of investments in unconsolidated joint ventures

Advances and originations under notes receivable

Principal payments received on notes receivable

1 unchanged sentence

FINANCING ACTIVITIES:

Borrowings from revolving line of credit

Repayment of term loans

Repayment of revolving line of credit

Principal payments on senior unsecured notes

Net borrowings under revolving line of credit

Repayment of debt

Proceeds from common stock issued

11 unchanged sentences

Non-cash investing and financing transactions:

Contribution from non-controlling interest

Investment in financing receivables

Exchange of mortgage loans for controlling interests in joint ventures accounted for as financing receivables

Accretion of interest reserve recorded as mortgage loan receivable

Write-off of notes receivable

Decrease in fair value of interest rate swap agreements

Increase (decrease) in fair value of interest rate swap agreements

Distributions paid to non-controlling interests

Transfer of joint venture partner's non-controlling interest to LTC

Distributions paid to non-controlling interests related to property sale

Distributions to non-controlling interests related to sale of properties accounted for as a financing receivable

See accompanying notes.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

LTC Properties, Inc., a health care real estate investment trust (“REIT”), was incorporated on May 12, 1992 in the State of Maryland and commenced operations on August 25, 1992.

We invest primarily 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.

Additionally, during the second quarter of 2025, we began utilizing the structure authorized by the REIT Investment Diversification and Empowerment Act of 2007 (Commonly referred to as “RIDEA”) as permitted by the Housing and Economic Recovery Act of 2008.

Our primary seniors housing and health care property classifications include skilled nursing centers (“SNF”), independent living communities (“ILF”), assisted living communities (“ALF”), memory care communities (“MC”) and combinations thereof.

Independent living communities, assisted living communities, memory care communities and combinations thereof are included in the seniors housing communities classification (“SH”).

We also invest in other (“OTH”) types of properties, such as land parcels, projects under development (“UDP”) and behavioral health care hospitals.

Our primary objectives are to create, sustain and enhance stockholder equity value and provide current income for distribution to stockholders through real estate investments in seniors housing and health care properties managed by experienced operators.

To meet these objectives, we attempt to invest in properties that provide an opportunity for additional value and current returns to our stockholders and diversify our investment portfolio by geographic location, operator, property classification and form of investment.

Description of Business

LTC Properties, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Basic of Presentation and Accounting Policies

Basic of Presentation

(“LTC” or the “Company”), a health care real estate investment trust (“REIT”), was incorporated on May 12, 1992 in the State of Maryland and commenced operations on August 25, 1992.

We invest primarily in seniors housing and health care properties primarily through our owned seniors housing operating portfolio (“SHOP”), triple-net leases and joint ventures.

Investment Portfolio

Our goal is to invest in properties that provide an opportunity for additional value and current returns to our stockholders and diversify our investment portfolio by geographic location and operator.

As of March 31, 2026, our total gross investment portfolio included owned real properties subject to non-cancellable triple-net leases (“NNN” or “Triple-Net Portfolio”) ( 41.8 %), SHOP ( 28.8 %), properties we own accounted for as financing receivables ( 11.8 %), mortgage loans receivable secured by first mortgages ( 16.1 %), notes receivable ( 1.0 %) and unconsolidated joint ventures ( 0.5 %).

Property Types

Our seniors housing and health care property classifications include skilled nursing centers (“SNF”), independent living communities (“ILF”), assisted living communities (“ALF”), memory care communities (“MC”) and combinations thereof.

Independent living communities, assisted living communities, memory care communities and combinations thereof are included in the seniors housing communities classification (“SH”).

We also have investments in other (“OTH”) types of properties, such as land parcels, projects under development (“UDP”) and a behavioral health care hospital.

Any reference to the number or type of properties or facilities, number of units, number of beds, number of operators and yield on investments in real estate are unaudited and outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board.

Basis of Presentation and Accounting Policies

Basis of Presentation

We have prepared consolidated financial statements included herein without audit and in the opinion of management have included all adjustments necessary for a fair presentation of the consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

1 unchanged sentence

generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to rules and regulations governing the presentation of interim financial statements.

The results of operations for the three months ended March 31, 2026 and 2025 are not necessarily indicative of the results for a full year.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Principles of Consolidation

1 unchanged sentence

All significant intercompany accounts and transactions have been eliminated in consolidation.

The results of operations for the three and nine months ended September 30, 2025 and 2024 are not necessarily indicative of the results for a full year.

As explained above, we began utilizing the RIDEA structure in the second quarter of 2025, and established a seniors housing operating portfolio (“SHOP”) segment.

Use of Estimates

Preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.

Actual results could differ from those estimates.

Our most significant assumptions and estimates are related to the valuation of real estate, purchase price allocation of acquired assets, revenue recognition including the collectability of tenant receivables and asset impairment.

During the second quarter of 2025, we began utilizing the structure authorized by the REIT Investment Diversification and Empowerment Act of 2007 (Commonly referred to as “RIDEA”) as permitted by the Housing and Economic Recovery Act of 2008.

Under RIDEA, REITs are permitted to participate directly in the cash flow of qualified healthcare properties (compared to receiving solely contractual rental income).

Accordingly, effective in the second quarter of 2025, we conduct and manage our business as two operating segments, for reporting and decision-making purposes:

real estate investments and SHOP.

See Note 16 to our consolidated financial statements for more information.

Our real estate investments segment consists of owned properties that are leased pursuant to non-cancelable triple-net operating (“NNN” or “Triple-Net”) leases, financing receivables, mortgage loans, notes receivable and unconsolidated joint ventures.

During 2025, we terminated the Anthem Memory Care, LLC (“Anthem”) and New Perspective Senior Living, LLC.

(“New Perspective”) Triple-Net master leases and converted the 13 communities covered under the master leases into our new SHOP segment.

Additionally, we acquired eight seniors housing communities within our SHOP segment during the third quarter of 2025.

Accordingly, as of September 30, 2025, our SHOP segment is comprised of 21 ILF, ALF and MC that are managed on behalf of LTC by five independent operators pursuant to the terms of separate management agreements.

Revenue Recognition-SHOP

Resident fees and services represent all amounts earned from residents within our SHOP segment, as outlined in individual resident agreements.

Fees are billed monthly based on contracted rates in the resident agreements, or where applicable, reimbursement rates established by Medicaid and Medicare.

Resident fees and services revenue is derived from amounts paid by residents and/or third-party payors.

Resident agreements typically vary in duration.

Revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) when performance obligations are satisfied.

i) real estate investments segment (“Real Estate Investments Segment”) which consists of our Triple-Net Portfolio, financing receivables, mortgage loans, notes receivable and unconsolidated joint ventures and ii) SHOP segment.

See Note 17-Segment Information for more information.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Real Estate Investments

Independent living communities, assisted living communities, memory care communities and combinations thereof are included in the seniors housing communities classification (“SH”).

Any reference to the number of properties or facilities, number of units, number of beds, number of operators and yield on investments in real estate are unaudited and outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board.

Owned Properties

Our owned property investments include 107 properties leased to 20 different operators under Triple-Net leases, and 21 properties operated on our behalf by five independent operators pursuant to separate management agreements.

The following tables summarize our investments in owned properties at September 30, 2025 (dollar amounts in thousands) :

Owned Real Properties

Our owned real properties include 96 properties within our Triple-Net Portfolio leased to 18 different operators and 30 properties within our SHOP segment managed on our behalf by eight independent operators under separate management agreements.

The following tables summarize our investments in owned properties at March 31, 2026 (dollar amounts in thousands) :

Type of Property

Properties (1)

Seniors Housing

Skilled Nursing

Type of Property

Seniors Housing-NNN

4 unchanged sentences

(2) Includes three parcels of land held-for-use, and one behavioral health care hospital.

Type of Property

Seniors Housing

Skilled Nursing

During the nine months ended September 30, 2025 and 2024, we invested in the following capital improvement projects in our owned properties ( dollar amounts in thousands ):

Nine Months Ended September 30,

Type of Property

Seniors Housing Communities

Skilled Nursing Centers

Owned Real Properties–SHOP

During the second quarter of 2025, we began utilizing the RIDEA structure and established a SHOP segment.

Following the establishment of our SHOP segment, during the second through fourth quarter of 2025, we acquired 11 seniors housing communities within the SHOP segment.

Additionally, we terminated triple-net master leases with three operators and converted 15 seniors housing communities covered under the master leases into our SHOP segment.

Upon conversion into the SHOP segment, two of these communities are operating and accounted for as one community.

During the three months ended March 31, 2026, we continued to expand our SHOP segment.

Accordingly, we terminated an additional triple-net master lease and converted the two seniors housing communities covered under the master lease into our SHOP segment.

Upon conversion, we entered into a management agreement with an operator new to us.

The communities are located in Texas with a total of 88 -units and an aggregate gross book value of $ 26,285,000 .

Additionally, we acquired a portfolio of three seniors housing communities in Georgia.

See Acquisitions below for more information.

As of March 31, 2026, our SHOP segment represented 28.8 % of our gross portfolio investments and comprised of 30 seniors housing communities that are managed on our behalf by eight independent operators pursuant to separate management agreements.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Intangible Assets.

We make estimates as part of our allocation of the purchase price of acquisitions to various components of the acquisition based upon the fair value of each component.

In determining fair value, we use current appraisals or other third-party opinions of value.

The most significant components of our allocations are typically the allocation of fair value to land and buildings, and for certain of our acquisitions, in-place leases and other intangible assets.

In the case of the value of in-place leases, we make estimates based on the evaluation of the specific characteristics of each tenant’s lease.

Factors considered include estimates of carrying costs during the hypothetical expected lease-up periods, market conditions and costs to execute similar leases.

The following is a summary of the carrying amount of intangible assets as of September 30, 2025 and December 31, 2024 (in thousands) :

September 30, 2025

December 31, 2024

In-place leases

Tax abatement intangible

(1) Included in the Buildings and improvements line item in our Consolidated Balance Sheets .

Increase relates to acquisition of eight seniors housing communities during the third quarter of 2025 within our SHOP segment.

See Owned Properties-SHOP below for more information.

(2) Included in the Accumulated depreciation and amortization line item in our Consolidated Balance Sheets.

(3) Included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets .

The following table provides future amortization expenses related to the intangible assets at September 31, 2025 ( in thousands ):

In-place leases (1)

Tax abatement intangible (2)

(1) Recorded as depreciation expense excluded in the Depreciation and amortization line item on our Consolidated Statements of Income.

(2) Recorded as Property tax expense on our Consolidated Statements of Income.

Owned Properties- Triple-Net

Our Triple-Net leases require the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities.

Many of the leases contain renewal options.

The majority of our leases contain provisions for specified annual increases over the rents of the prior year.

Many of our existing leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater than that currently being paid.

The following table presents information related to our SHOP segment as of March 31, 2026 ( dollar amounts in thousands ):

(1) Subsequent to March 31, 2026, we acquired a community within our SHOP segment for $ 9,205 .

The community is located in Illinois with a total of 61 units.

In conjunction with the acquisition, we entered into a management agreement with an operator new to us.

Additionally, we terminated a triple-net master lease and converted two seniors housing communities covered under the master lease to our SHOP segment.

Upon conversion, we entered into a management agreement with another operator also new to us.

The communities are located in Georgia and South Carolina with a total of 159 units and an aggregate gross book value of $ 32,361 .

The following table summarizes acquisitions within our SHOP segment during the three months ended March 31, 2026:

Type of Property

Properties (1)

Beds/Units (1)

(1) Subsequent to March 31, 2026, we acquired a 61 -unit seniors housing community within our SHOP segment in Illinois for $ 9,205 .

In conjunction with the acquisition, we entered into a management agreement with an operator new to us.

(2) In conjunction with this acquisition, we entered into a management agreement with another operator new to us.

(3) Excludes $ 100 of additional costs incurred related to 2025 acquisitions.

Additionally, at acquisition, we received property tax proration credits of $ 76 .

The total acquisition costs allocated to SHOP assets acquired were as follows:

Buildings and improvements

Total acquisition costs

Capital Improvement Projects

During the three months ended March 31, 2026, we funded capital improvement projects of $ 2,012,000 within our SHOP segment.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

The following table outlines information related to our Triple-Net lease extensions during the nine months ended September 30, 2025 ( dollar amounts in thousands ):

Owned Real Properties–Triple-Net Portfolio

Our Triple-Net Portfolio includes owned properties that are leased pursuant to non-cancelable triple-net operating leases.

Triple-net leases require the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities.

The majority of our triple-net leases contain provisions for specified annual increases over the rents of the prior year.

Lease Extensions

Many of the triple-net leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater than that currently being paid.

The following table provides information related to our triple-net lease extensions during the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):

Type of Property

April 30, 2026

April 30, 2031

December 31, 2025

December 31, 2026

February 28, 2025

February 28, 2026

February 28, 2031

October 31, 2026

October 31, 2030

December 31, 2025

December 31, 2026

(1) During the third quarter of 2025, Genesis Healthcare, Inc.

(“Genesis”) filed for Chapter 11 bankruptcy.

Genesis has paid their contractual rent through November 2025.

(2) The purchase option window provided in the master lease, which expired on December 31, 2024, was extended for another year to December 31, 2025.

(1) During the third quarter of 2025, the operator provided an election notice to exercise its purchase option.

Additionally, during 2025, we terminated two existing leases with the same operator and combined them into a single master lease.

The new master lease has a five-year term with one 1-year extension option and four 5-year extension options.

Annual cash rent is $ 2,547,000 for the first lease year, escalating by 2 % annually thereafter.

In connection with the termination of these leases, we wrote-off the related straight-line rent receivable and lease incentive balances during the nine months ended September 30, 2025.

See next page for details.

Also, during 2025, we terminated the Anthem Triple-Net master leases and converted the communities covered under the master leases into our SHOP segment.

In conjunction with the conversion, during 2025, we wrote-off Anthem’s working capital note of $ 2,693,000 and the related interest receivable of $ 371,000 .

In addition, we terminated our New Perspective Triple-Net lease and converted the community covered under the lease into our SHOP segment.

In connection with the conversion, we paid New Perspective a $ 5,971,000 lease termination fee.

For more information regarding these communities, see Owned Properties-SHOP below.

We monitor the collectability of our receivable balances, including deferred rent receivable balances, on an ongoing basis.

We write-off uncollectible operator receivable balances, including straight- line rent receivable and lease incentives balances, as a reduction to rental income in the period such balances are no longer probable of being collected.

Therefore, recognition of rental income is limited to the lesser of the amount of cash collected or rental income reflected on a “straight-line” basis for those customer receivable balances deemed uncollectible.

During the three months ended September 30, 2025, we wrote-off straight-line rent receivable balance of $ 1,271,000 in connection with the on-going Genesis Chapter 11 bankruptcy filing.

Additionally, during the nine months ended September 30, 2025, we wrote-off straight-line rent receivable and lease incentive balances of $ 243,000 and $ 249,000 , respectively, in connection with the termination of two existing leases with the same operator and combining them into a master lease, as discussed above.

During the nine months ended September 30, 2024, we wrote-off a straight-line rent receivable balance of $ 321,000 as a result of converting a lease to fair-market rent resets and a lease incentive balance of $ 190,000 as a result of property sales.

See Purchase Options below for more information.

Lease Terminations

During the three months ended March 31, 2026, we terminated a triple-net master lease and converted two seniors housing communities covered under the master lease into our SHOP segment.

Upon conversion, we entered into a management agreement with an operator new to us.

The communities are located in Texas with a total of 88 units and an aggregate gross book value of $ 26,285,000 .

Subsequent to March 31, 2026, we terminated an additional triple-net master lease and converted two seniors housing communities covered under the master lease into our SHOP segment.

Upon conversion, we entered into a management agreement with another operator also new to us.

The communities are located in Georgia and South Carolina with a total of 159 units and an aggregate gross book value of $ 32,361,000 .

During the three months ended March 31, 2025, we terminated two existing leases with the same operator, and combined them into a single master lease.

The new master lease had a five-year term with one 1-year extension option and four 5-year extension options.

In connection with the termination of these leases, we wrote-off straight-line rent receivable and lease incentive balances of $ 243,000 and $ 249,000 , respectively.

During the fourth quarter of 2025, we terminated the new master lease and converted the communities covered under the master lease into our SHOP segment.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

We continue to take into account the current financial condition of our operators in our estimation of uncollectible accounts at September 30, 2025.

We are closely monitoring the collectability of such rents and will adjust future estimations as appropriate as further information becomes known.

The following table summarizes components of our rental income for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Components of Rental Income

The following table summarizes components of our rental income for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended

Nine Months Ended

September 30,

Rental Income

1 unchanged sentence

Variable cash rental income (2)

Straight-line rent (adjustment) income

Straight-line rent adjustment

Adjustment of lease incentives and rental income

Amortization of lease incentives

(1) Decreased primarily due to the conversion of 13 communities from Triple-Net to our new SHOP segment and lower rent from property sales, partially offset by rent increases from fair-market rent resets, escalations and capital improvements.

(2) Decreased primarily due to (1) above and the turnaround impact of one-time revenue received in 2024 related to the repayment of $ 2,377 of rent credit in connection with a sale.

(3) The variable rental income includes reimbursement of real estate taxes by our lessees.

Decrease primarily due to conversion of 13 communities from Triple-Net to our new SHOP segment and property sales.

(4) Straight-line rental income decreased primarily due to scheduled annual escalations partially offset by lease extensions.

(5) In connection with Genesis’ on-going Chapter 11 bankruptcy filing, we wrote-off the Genesis straight-line rent receivable balance of $ 1,271 .

(6) Relates to explanation (5) above and the write-off of a straight-line rent receivable of $ 243 and a lease incentive balance of $ 249 in connection with the termination of two existing leases with the same operator, and combining them into a single master lease.

(7) Represents a lease incentive balance write-off as a result of converting a lease to fair-market rent resets.

(1) Decreased primarily due to the conversion of communities from NNN to the SHOP segment and lower rent from property sales, partially offset by rent increases from fair-market rent resets, escalations and capital improvements.

(2) The variable cash rental income for the three months ended March 31, 2026 and 2025 includes reimbursement of real estate taxes by our lessees.

Decreased due to the conversion of communities from NNN to SHOP and property sales.

(3) In connection with the termination of two existing leases with the same operator, and combining them into a single master lease, we wrote-off a straight-line rent receivable of $ 243 and a lease incentive balance of $ 249 .

We monitor the collectability of our receivable balances, including deferred rent receivable balances, on an ongoing basis.

For leases where we have concluded it is not probable that we will collect substantially all the lease payments under those leases, recognition of rental income is limited to the lesser of the amount of cash collected or rental income reflected on a straight-line basis.

We write-off uncollectible operator receivable balances, including straight-line rent receivable and lease incentives balances, as a reduction to rental income in the period such balances are no longer probable of being collected.

During the three months ended March 31, 2026, we did not record any write-offs of straight-line rent receivable or lease incentive balances.

During the three months ended March 31, 2025, we wrote-off straight-line rent receivable and lease incentive balances of $ 243,000 and $ 249,000 , respectively, in connection with the termination of two existing leases with the same operator, and combining them into a master lease as discussed above.

We continue to take into account the current financial conditions of our operators, in our estimation of uncollectible accounts and deferred rents receivable and closely monitor the collectability of such rents, adjusting future estimates as necessary.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us.

The following table summarizes information about purchase options included in our lease agreements (dollar amounts in thousands):

Purchase Options

Some of our triple-net lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us.

The following table summarizes information about purchase options included in our lease agreements as of March 31, 2026 (dollar amounts in thousands):

Investments (1)

North Carolina

North Carolina/ South Carolina

North Carolina

South Carolina

Georgia/South Carolina

Colorado/Kansas/Ohio/Texas

1 unchanged sentence

(1) Gross investments include previously recorded impairment losses, if any.

(2) The purchase option can be exercised through 2028, with an exit Internal Rate of Return (“IRR”) of 8.0 % .

These assets are accounted for as financing receivables.

For more information see Financing Receivables below.

(3) The purchase option window which expired on December 31, 2024, was extended for another year to December 31, 2025.

During the third quarter of 2025, the operator provided an election notice to exercise its purchase option.

(4) These assets are accounted for as financing receivables.

For more information see Financing Receivables below.

Subsequent to September 30, 2025, the operator provided notice of its intent to exercise its purchase option.

(5) The operator has the option to buy the properties in multiple tranches and in serial closings approved by LTC with an exit IRR of 9.0 % on any portion of the properties being purchased.

These assets are accounted for as financing receivables.

For more information see Financing Receivables below.

(6) The purchase option can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option under the master lease.

(2) The operator may elect to either receive an earn-out payment or exercise its purchase option.

2 unchanged sentences

Commitments and Contingencies.

Properties Held -for-Sale.

The following summarizes our held-for-sale properties as of September 30, 2025 and December 31, 2024 ( dollar amounts in thousands ):

At September 30, 2025

At December 31, 2024

(1) These centers were sold subsequent to September 30, 2025.

See footnote (2) to the Properties Sold table below for additional information.

(2) This community was sold during the first quarter of 2025.

Upon sale, the community was removed from a master lease covering five SHs in Oklahoma and rent under the master lease was not reduced as a result of the sale.

(3) Excludes a purchase option with an expiration date of December 31, 2025.

The operator provided notice of the election to exercise the purchase option during the third quarter of 2025.

Subsequent to March 31, 2026, we entered into a purchase and sale agreement with the operator.

The purchase option relates to a master lease covering two SNFs in Tennessee with a total of 141 beds and an aggregate gross book value of $ 5,275 .

As of March 31, 2026, we do not believe these centers meet the criteria to be classified as held-for-sale.

See Note-4 Financing Receivables for purchase options included in our financing receivable agreements.

Improvement Projects

During the three months ended March 31, 2026 and 2025, we invested in the following capital improvement projects within our Triple-Net Portfolio ( dollar amounts in thousands ):

Three Months Ended March 31,

Type of Property

Seniors Housing Communities

Skilled Nursing Centers

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Acquisitions.

The following table summarizes our acquisitions within our Triple-Net segment for the nine months ended September 30, 2025 and 2024 (dollar amounts in thousands):

Type of Property

(1) During the nine months ended September 30, 2024, we acquired a parcel of land in Kansas adjacent to an existing community operated by Brookdale.

Rent was increased by 8.0 % of our total cost of the investment.

Properties Sold

During the nine months ended September 30, 2025 we recognized a net loss on sale of real estate of $ 235,000 .

During the nine months ended September 30, 2024, we recognized a net gain on sale of real estate of $ 6,882,000 .

The following table summarizes property sales during the nine months ended September 30, 2025 and 2024 (dollar amounts in thousands):

During the three months ended March 31, 2026 and 2025, we recognized a net loss on sale of real estate of $ 10,000 and a net gain on sale of real estate of $ 171,000 , respectively.

The following table summarizes property sales during the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):

(Loss) Gain (1)

(1) Calculation of net (loss) gain includes cost of sales and write-off of straight-line receivable and lease incentives, when applicable.

(2) Subsequent to September 30, 2025, we sold two skilled nursing centers in Florida totaling 240 beds for $ 43,000 .

We received $ 41,900 of net proceeds and expect to record a gain on sale of approximately $ 26,000 .

The properties had a gross book value of $ 23,900 and a net book value of $ 16,000 .

Additionally, we sold five skilled nursing centers in Virginia ( 4 ) and California ( 1 ) with a total of 656 beds for an aggregate sales price of $ 79,950 .

We will use the total proceeds of $ 78,900 in a 1031 exchange for the acquisitions within our SHOP segment and anticipate recording an aggregate gain on sale of approximately $ 52,000 .

These seven properties which were classified as held-for-sale at September 30, 2025, had an aggregate gross book value and net book value of $ 71,742 and $ 42,458 , respectively.

(3) We sold a parcel of land adjacent to a memory care community within our portfolio.

(4) Represents the price to sell our portion of interest in a JV, net of the JV partner’s $ 2,305 contributions in the joint venture.

(5) We recognized additional loss due to additional incurred costs related to properties sold during 2023.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Owned Properties-SHOP

As discussed above, during the second quarter of 2025, we terminated the Anthem and New Perspective Triple-Net master leases and converted the communities covered under the master leases into our new SHOP segment.

Additionally, during the third quarter of 2025, we acquired eight seniors housing communities within our SHOP segment.

Accordingly, as of September 30, 2025, our SHOP segment is comprised of 21 seniors housing communities that are managed on behalf of LTC by five independent operators pursuant to the terms of separate management agreements.

The following table summarizes acquisitions within our SHOP segment during the nine months ended September 30, 2025 ( dollar amounts in thousands ):

Type of Property

(1) Subsequent to September 30, 2025, we acquired an 88 -unit seniors housing community within our SHOP segment in Georgia for $ 22,900 .

In conjunction with the acquisition, we entered into a management agreement with an operator new to us.

(2) Includes $ 1,176 related to property tax prorations.

The following table presents the total acquisition costs allocated to assets acquired ( in thousands ):

Buildings and improvements

Total acquisition costs

The following table provides information regarding our SHOP segment as of September 30, 2025 (dollar amounts in thousands):

(1) Subsequent to September 30, 2025, we acquired within our SHOP segment an 88 -unit seniors housing community in Georgia for $ 22,900 .

In conjunction with the acquisition, we entered into a management agreement with an operator new to us.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

(2) We recognized a loss due to additional costs incurred related to properties sold during 2025.

Financing Receivables

As part of our acquisitions, we may invest in sale and leaseback transactions.

In accordance with the accounting guidance, we must determine whether each sale and leaseback transaction qualifies as a sale.

Generally, an option for the seller-lessee to repurchase a real estate asset precludes accounting for the transfer of the asset as a sale and the purchased assets should be presented as financing receivables.

We have entered into joint venture agreements and contributed into these JVs for the purchase of properties through sale and leaseback transactions.

We have entered into joint venture (“JV”) agreements and contributed into these JVs for the purchase of properties through sale and leaseback transactions.

Concurrently, each of these JVs leased the purchased properties back to an affiliate of the seller and provided the seller-lessee with purchase options.

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Therefore, we consolidated the joint ventures as Financing Receivables on our Consolidated Balance Sheets and recorded the rental revenue from these joint ventures as Interest income from financing receivables on our Consolidated Statements of Income .

The following tables provide information regarding our investments in financing receivables at September 30, 2025 ( dollar amounts in thousands ):

(1) A purchase option available to the seller-lessee is exercisable at the beginning of the fourth lease year (2025) through the end of the fifth lease year (2027), with an exit IRR of 8.5 % .

Subsequent to September 30, 2025, the operator provided notice of its intent to exercise its purchase option.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

The following tables provide information regarding our investments in financing receivables at March 31, 2026 ( dollar amounts in thousands ):

(1) The seller-lessee has the option to buy the properties in multiple tranches and in serial closings approved by LTC with an exit IRR of 9.0 % on any portion of the properties being purchased.

(3) During the second quarter of 2024, we funded an additional $ 5,546 under a mortgage loan receivable due from an ALG affiliate secured by 13 ALFs and MCs located in North Carolina ( 12 ) and South Carolina ( 1 ).

We then entered into a newly formed $ 122,460 JV with ALG, whereby we exchanged our $ 64,450 mortgage loan receivable for a 53 % controlling interest in the JV.

Concurrently, ALG contributed these properties to the joint venture for a 47 % non-controlling interest.

The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0 % .

(4) During the second quarter of 2024, we funded an additional $ 2,766 under a mortgage loan receivable due from an ALG affiliate secured by four ALFs located in North Carolina.

We then entered into a newly formed $ 41,000 JV with ALG, whereby we exchanged $ 37,985 mortgage loan receivables for a 93 % controlling interest in the JV.

Concurrently, ALG contributed these properties and a parcel of land to the joint venture for a 7 % non-controlling interest.

(2) The seller-lessee has a purchase option exercisable with an exit IRR of 8.0 % .

The following table summarizes our financing receivable activity for the three months ended March 31, 2026 and 2025 ( in thousands ):

Three Months Ended March 31,

Investment and funding under financing receivables

Sale of properties accounted for as a financing receivable

Distribution paid to non-controlling interest related to sale of properties accounted for as a financing receivable

Amortization of capital costs

Recovery of credit losses

Net decrease in financing receivables

(1) During 2022, we entered into a JV that purchased three skilled nursing centers with a total of 299 beds located in Florida.

The JV leased the centers back to an affiliate of the seller and provided the seller-lessee with a purchase option.

Our JV partner contributed $ 14,325 of equity into the joint venture.

Accordingly, we consolidated the joint venture as Financing receivable and recorded the JV partner contribution as Non-controlling interest on our Consolidated Balance Sheets .

During the three months ended March 31, 2026, the lessee exercised its purchase option to acquire the skilled nursing centers underlying the joint venture.

In conjunction with this transaction, we received exit IRR income of $ 1,812 .

Additionally, we wrote-off $ 198 effective interest receivable previously recognized over the term of the financing receivable through payoff.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Mortgage Loans

The following table sets forth information regarding our investments in mortgage loans secured by first mortgages at September 30, 2025 (dollar amounts in thousands) :

Mortgage Loans Receivable

The following table sets forth information regarding our investments in mortgage loans secured by first mortgages at March 31, 2026 (dollar amounts in thousands) :

Interest Rate

Properties (1)

(1) Excludes the impact of the credit loss reserve.

(2) Some loans contain certain guarantees and provide for certain facility fees.

(1) Our mortgage loans are secured by properties located in five states with six borrowers.

(4) During 2024, we committed to fund a $ 26,120 mortgage loan for the construction of a 116 -unit ILF, ALF and MC located in Illinois.

Additionally, some loans contain certain guarantees and/or provide for certain facility fees.

Gross investment shown above excludes the impact of credit loss reserve.

(2) During 2025, we modified the mortgage loan with Prestige, the borrower, to increase the current interest paid by the borrower from 8.5 % to the full contractual interest rate of 11.14 % , escalating annually.

The modification was effective July 1, 2025.

Additionally, the modification provides Prestige an option to prepay their mortgage loan at par without penalty within a 12-month window beginning in July 2026.

Under the modification, Prestige agreed to provide us with at least a 90-day notice of its intention to exercise the option, and the ability for Prestige to exercise the pre-payment option is contingent on several factors including Prestige being current and in good standing on all its mortgage loans with LTC and obtaining replacement financing.

In conjunction with the loan modification and the penalty-free early payoff option, during the third quarter of 2025, we wrote-off $ 41,455 of effective interest previously accrued related to this mortgage loan.

During the three months ended March 31, 2026, Prestige provided notice of its intent to repay its $ 179,882 mortgage loan.

Prestige is current on their contractual loan obligations through May 2026.

(3) Mortgage loans provide for 2.25 % annual increases in the interest rate after a certain time period.

(4) During 2024, we committed to fund a $ 26,120 mortgage loan for the construction of a 116 -unit SH located in Illinois.

The borrower contributed $ 12,300 of equity which initially funded the construction.

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The loan bears interest at a current rate of 9.0 % and an IRR of 9.5 % .

(5) During the three months ended September 30, 2025, we modified the mortgage loan with Prestige Healthcare (“Prestige”), the borrower, to increase the current interest paid by the borrower from 8.5 % to the full contractual interest rate of 11.14 % and escalated annually.

The modification was effective July 1, 2025.

Additionally, the modification provides Prestige an option to prepay their mortgage loan at par without penalty within a 12-month window beginning in July 2026.

Prestige will have to provide us with a 90 -day notice of its intention to exercise the option, and the ability for Prestige to exercise the pre-payment option is contingent on several factors including Prestige being current and in good standing on all its mortgage loans with LTC and obtaining replacement financing.

In conjunction with the loan modification and the penalty-free early payoff option, we wrote-off $ 41,455 of interest previously accrued related to this mortgage loan.

For more information related to the effective interest write-off see additional discussion below.

(6) Mortgage loans provide for 2.25 % annual increases in the interest rate.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

As noted in the table above, we modified the Prestige $ 180,388,000 mortgage loan to increase the current interest paid by the borrower from 8.5 % to the full contractual interest rate of 11.14 % escalated annually.

The modification was effective July 1, 2025.

Additionally, the modification provides Prestige an option to prepay their mortgage loan at par and without penalty within a 12-month window beginning in July 2026.

In evaluating the impact of the prepayment provisions allowing the borrower to settle the obligation at an amount less than amounts previously accrued under the effective interest method, we wrote-off $ 41,455,000 of interest receivable previously accrued related to this mortgage loan during the three months ended September 30, 2025.

The following table summarizes our mortgage loan activity for the nine months ended September 30, 2025 and 2024 (in thousands):

Nine Months Ended September 30,

The following table summarizes our mortgage loan activity for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Originations and funding under mortgage loans receivable

Exchange of mortgage loans for controlling interests in joint ventures accounted for as financing receivables

Pay-offs received

Application of interest reserve

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Mortgage loan premium amortization

(Provision) recovery for loan loss reserve

Net increase (decrease) in mortgage loans receivable

(1) Includes the following:

(a) $ 55,350 under a $ 57,550 mortgage loan commitment secured by two ALF/MC with a total of 171 units in California.

The loan term is five years at a rate of 8.3 % ;

(b) $ 39,330 under a $ 42,300 mortgage loan commitment secured by a 250 -unit ILF, ALF and MC in Florida.

The loan term is five years at a fixed rate of 8.5 % ;

The borrower contributed $ 12,100 of equity upon origination in July 2023, which was used to initially fund the construction.

Our remaining commitment is $ 3,013 .

The interest-only loan term is approximately three years at a rate of 8.75 % , and includes two one-year extensions, each of which is contingent on certain coverage thresholds;

(d) $ 1,177 under a $ 26,120 mortgage loan commitment for the construction of a 116 -unit ILF, ALF and MC located in Illinois.

Provision for credit losses

Net increase in mortgage loans receivable

(1) We funded the following:

(a) $ 6,515 under a $ 26,120 mortgage loan commitment for the construction of a 116 -unit SH located in Illinois.

The borrower contributed $ 12,300 of equity which was used to initially fund the construction.

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The loan bears interest at a current rate of 9.0 % and an IRR of 9.5 % ;

(2) Includes the following:

(a) $ 9,999 under a $ 19,500 mortgage loan commitment.

For an explanation of the terms and other relevant information related to this mortgage loan see (1) (c) above;

(b) $ 5,546 of additional funding under a mortgage loan receivable agreement with an ALG affiliate secured by 13 ALFs and MCs in North Carolina ( 12 ) and South Carolina ( 1 ).

During the three months ended June 30, 2024, we exchanged this $ 64,450 mortgage loan receivable for a controlling interest in a JV investment with an ALG affiliate.

See Financing Receivables above for more information;

(c) $ 2,766 of additional funding under a mortgage loan receivable agreement with an ALG affiliate secured by four ALFs in North Carolina.

During the three months ended June 30, 2024, we exchanged this $ 37,985 mortgage loan receivable for a controlling interest in a JV investment with an ALG affiliate.

See Financing Receivables above for more information;

(d) $ 767 of additional funding.

(3) Includes the following:

(a) $ 64,450 mortgage loan receivable due from an ALG affiliate was exchanged for a controlling interest in a JV.

See (2)(b) above for more information;

(b) $ 37,985 mortgage loan receivable due from an ALG affiliate was exchanged for a controlling interest in a JV.

See (2)(c) above for more information;

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

(b) $ 640 under a $ 19,500 mortgage loan commitment for the construction of an 85 -unit SH in Michigan.

The borrower contributed $ 12,100 equity upon origination, which was used to initially fund the construction.

Our remaining commitment is $ 1,757 .

The 8.8 % interest-only loan matures in September 2026 and includes two one-year extension, each of which is contingent on certain coverage thresholds.

(2) We funded the following:

(a) $ 1,919 under our $ 19,500 mortgage loan commitment.

For an explanation of the terms and other relevant information related to this mortgage loan, see (1) (b) above.

Investment in Unconsolidated Joint Ventures

We have a preferred equity investments in one joint venture and an acquisition, development and construction (“ADC”) loan.

We determined that each of these JVs meet the accounting criteria to be considered a variable interest entity (“VIE”).

We are not the primary beneficiary of the JVs as we do not have both:

1) the power to direct the activities that most significantly affect the JVs’ economic performance, and 2) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

However, we do have significant influence over the JVs.

Therefore, we have accounted for the JVs using the equity method of accounting.

During 2025, we received $ 15,962,000 , which includes a 13 % exit IRR of $ 2,962,000 , from the redemption of our preferred equity investment in a joint venture that owns a 267 -unit independent and assisted living community in Washington.

The following table provides information regarding our unconsolidated joint venture investments at September 30, 2025 (dollar amounts in thousands):

Preferred Equity

We have an acquisition, development and construction (“ADC”) loan that meets the accounting criteria to be considered a variable interest entity (“VIE”).

We are not the primary beneficiary of the VIE as we do not have both:

1) the power to direct the activities that most significantly affect the VIE’s economic performance, and 2) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

However, we do have significant influence over the VIE.

Therefore, we have accounted for the investment as a joint venture using the equity method of accounting.

The following table provides information regarding our unconsolidated joint venture investments at March 31, 2026 (dollar amounts in thousands):

(1) Represents a $ 12,700 mortgage loan, which is comprised of $ 11,164 funded at origination during the three months ended June 30, 2024, an interest reserve of $ 750 and a capital expenditure reserve of $ 786 .

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The five-year mortgage loan is interest-only at a current rate of 9.15 % .

(2) Our investment represents 15.5 % of the total investment.

The preferred equity investment earns an initial cash rate of 7 % increasing to 9 % in year four until the IRR is 8 % .

After achieving an 8 % IRR, the cash rate drops to 8 % with an IRR ranging between 12 % to 14 % , depending upon timing of redemption.

We have the option to require the JV partner to purchase our preferred equity interest at any time between August 17, 2031 and December 31, 2036.

The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the nine months ended September 30, 2025 and 2024 (in thousands):

Income Accrued

(1) During 2025, our preferred equity investment in a JV that owns a 267 -unit ILF and ALF in Washington was redeemed for $ 15,962 , which included a 13 % exit IRR of $ 2,962 .

During the three months ended March 31, 2026, the operator provided notice of its intent to pay off this mortgage loan.

Subsequent to March 31, 2026, the mortgage loan was paid off.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Additionally, we had two preferred equity investments that also met the accounting criteria to be considered a VIE based on the same factors discussed above for the ADC loan.

During 2025, both preferred equity investments were redeemed.

The following table summarizes income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the three months ended March 31, 2026 and 2025 (in thousands):

Income Accrued

(1) During the fourth quarter of 2025, our preferred equity investment in the JV that owns a 109 -unit SH in Washington was redeemed for $ 8,140 , which included a 12.0 % exit IRR of $ 1,800 .

(2) During the first quarter of 2025, our preferred equity investment in the JV that owns a 267 -unit SH in Washington was redeemed for $ 15,962 , which included a 13 % exit IRR of $ 2,962 .

Notes Receivable

Notes receivable consist of working capital loans and a mezzanine loan.

The following table summarizes our investments in notes receivable at September 30, 2025 ( dollar amounts in thousands ):

Working capital

The following table summarizes our investments in notes receivable at March 31, 2026 ( dollar amounts in thousands ):

Working capital

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(1) Excludes the impact of credit loss reserve.

The following table is a summary of our notes receivable components as of September 30, 2025 and December 31, 2024 (in thousands):

At September 30, 2025

The following table is a summary of our notes receivable components as of March 31, 2026 and December 31, 2025 (in thousands):

At March 31, 2026

At December 31, 2025

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Total notes receivable, net of credit loss reserve

The following table summarizes our notes receivable activity for the nine months ended September 30, 2025 and 2024 (in thousands):

Nine Months Ended September 30,

Advances under notes receivable

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

The following table summarizes our notes receivable activity for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Principal payments received under notes receivable

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Net decrease in notes receivable

(1) Includes the following:

(a) $ 17,000 related to an early payoff of a mezzanine loan.

In conjunction with the mezzanine loan payoff, we received exit IRR income of $ 2,599 recognized as Interest and other income in our Consolidated Statements of Income .

The exit IRR income was partially offset by $ 1,624 of effective interest previously recognized over the term of the mezzanine loan through payoff;

(b) $ 639 related to the payoff of three working capital loans;

(1) Represents the write-off of Anthem Memory Care LLC (“Anthem”) working capital note in connection with the conversion of Anthem’s triple-net leases to SHOP.

(3) During 2024, we received $ 11,986 towards the paydown of a $ 13,531 working capital note.

The remaining $ 1,545 balance of the working capital note is interest free and will be repaid in installments through 2028.

Additionally, we received an aggregate of $ 1,282 related to the payoff of two working capital notes.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Lease Incentives

Our non-contingent lease incentive balances at September 30, 2025 and December 31, 2024 were $ 2,717,000 and $ 3,522,000 , respectively.

The following table summarizes our lease incentives activity for the nine months ended September 30, 2025 and 2024 (in thousands) :

Nine Months Ended September 30,

Lease incentives funded

Amortization of lease incentives

Adjustment for collectability of lease incentives

Other adjustments

Net (decrease) increase in non-contingent lease incentives

(1) Represents uncollectible lease incentive balances written-off due to the termination of two existing leases with the same operator, and combining them into a single master lease.

(2) Represents lease incentive balances written-off due to property sales.

Non-contingent lease incentives represent payments made to our lessees for various reasons including entering into a new lease or lease amendments and extensions.

Contingent lease incentives represent potential contingent earn-out payments that may be made to our lessees in the future, as part of our lease agreements.

From time to time, we may commit to provide contingent payments to our lessees, upon our properties achieving certain rent coverage ratios.

Once the contingent payment becomes probable and estimable, the contingent payment is recorded as a lease incentive.

Lease incentives are amortized as a yield adjustment to rental income over the remaining life of the lease.

Credit Loss Reserve

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For more information regarding these transactions See Note 4.

Real Estate Investments above.

At September 30, 2025, we had investments in four JVs accounted for as financing receivables that owned 31 properties in three states.

Financing Receivables above.

At March 31, 2026, we had investments in three JVs accounted for as financing receivables that owned 28 properties in two states.

In addition to owning the properties through our controlling interests in the JVs, generally, these leases provide one or more of the following:

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As part of our strategy of making investments in properties used in the provision of long-term health care services, we provided mortgage loan financing on such properties.

At September 30, 2025, we had ten mortgage loans secured by 27 properties in five states with six borrowers.

At March 31, 2026, we had nine mortgage loans secured by 26 properties in five states with six borrowers.

In addition to a lien on the mortgaged properties, the loans are generally secured by non-real estate assets of the properties and contain certain other security provisions in the form of letters of credit and/or security deposits.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Notes receivable.

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secured second mortgage, pledge of equity interests and personal/corporate guarantees.

The following table summarizes our financial instruments within the scope of ASC 326 by year of origination ( dollar amounts in thousands ):

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

The following table summarizes our financial instruments within the scope of ASC 326 by year of origination ( in thousands ):

Year of origination (1)

At September 30, 2025

At March 31, 2026

Investment Type:

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Credit Loss Reserve – Notes Receivable

(1) Relates to the recovery of a credit loss reserve on a financing receivable as a result of the lessee’s exercise of sale of the underlying properties to the lessee during the three months ended March 31, 2026.

We elected not to measure an allowance for expected credit losses on accrued interest receivable under the expected credit loss standard as we have a policy in place to reserve or write off accrued interest receivable in a timely manner through our quarterly review of the loan and property performance.

Therefore, we elected the policy to write off accrued interest receivable by recognizing credit loss expense.

As of September 30, 2025, the total balance of accrued interest receivable of $ 21,535,000 was not included in the measurement of expected credit loss.

During the nine months ended September 30, 2025, we wrote-off Anthem’s interest receivable of $ 371,000 in connection with the conversion of Anthem’s Triple-Net leases to SHOP as explained in Note 3.

Real Estate Investments .

During the nine months ended September 30, 2024, we wrote-off $ 613,000 of interest receivable related to a partial paydown of a mortgage loan.

As of March 31, 2026, the total balance of accrued interest receivable of $ 23,278,000 was not included in the measurement of expected credit loss.

During the three months ended March 31, 2026, we wrote-off effective interest receivable of $ 198,000 previously recognized over the term of a financing receivable upon the sale of the underlying properties to the lessee.

During the three months ended March 31, 2025, we wrote-off Anthem’s interest receivable of $ 371,000 in connection with the conversion of Anthem’s triple-net leases to SHOP as explained in Note 3.

Owned Real Properties .

LTC PROPERTIES, INC.

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Prepaid Expenses and Other Assets

The following is a summary of our prepaid expenses and other assets at September 30, 2025 and December 31, 2024 ( dollar amounts in thousands ):

September 30, 2025

The following is a summary of our prepaid expenses and other assets at March 31, 2026 and December 31, 2025 ( in thousands ):

March 31, 2026

December 31, 2025

Intangible assets

Intangible assets, net of accumulated amortization:

2026— $ 1,962 ;

2025— $ 1,789

SHOP accounts receivable, net of credit loss reserve:

2026— $ 391 ;

SHOP prepaid expenses and other assets

Real estate investments, prepaid expenses and other assets

Right of use asset, net

Lease incentives

Real estate investments, prepaid expenses and other assets

Interest rate swap asset

SHOP accounts receivable, net of credit loss reserve:

Deferred income tax asset

Debt Obligations

Unsecured Credit Facility.

Through the first quarter of 2024, we had an unsecured credit agreement (the “Original Credit Agreement”) that provided for an aggregate commitment of the lenders of up to $ 500,000,000 comprising of a $ 400,000,000 revolving credit facility (the “Revolving Line of Credit”) and two $ 50,000,000 term loans (the “Term Loans”).

The Term Loans had maturities of November 19, 2025 and November 19, 2026.

The Revolving Line of Credit had a maturity date of November 19, 2025 and provided a one-year extension option at our discretion, subject to customary conditions.

During the first quarter of 2024, we entered into an amendment to the Original Credit Agreement (the “Credit Agreement”) to accelerate our one-year extension option notice and exercised our option to extend the maturity date to November 19, 2026.

Other material terms of the Original Credit Agreement remained unchanged.

The Credit Agreement permitted us to request increases to the Revolving Line of Credit and Term Loans commitments up to a total of $ 1,000,000,000 (the “Accordion”).

As permitted under the terms of the Credit Agreement, we exercised $ 25,000,000 of the available $ 500,000,000 Accordion feature of the Revolving Line of Credit during the third quarter of 2024.

Accordingly, the aggregate commitment of the lenders under the Credit Agreement increased to $ 525,000,000 , with $ 475,000,000 remaining available under the Accordion.

The exercise of the Accordion did not change any other term or condition of the Credit Agreement, including its maturity date or covenant requirements.

During the third quarter of 2025, we entered into a new four-year unsecured credit agreement (the “New Credit Agreement”) maturing in July 2029, to replace our previous Credit Agreement.

The New Credit Agreement increased the aggregate commitment on our revolving line of credit from $ 425,000,000 to $ 600,000,000 and provides for the opportunity to increase the total commitment to an aggregate $ 1,200,000,000 .

The New Credit Agreement provides for a one-year extension option, subject to customary conditions.

Material terms of the New Credit Agreement remain unchanged.

In connection with the New Credit Agreement, the Term Loans were rolled into the new revolving line of credit, keeping the interest rate swap agreements intact at an average 2.3 % rate, based on current margins.

Based on our leverage at September 30, 2025, the facility provides for interest annually at SOFR plus 115 basis points and a facility fee of 20 basis points.

Intangible Assets

We make estimates in allocating the purchase price of acquisitions to the various components of the acquisition based on the fair value of each component.

For certain acquisitions, such components include in-place leases and other intangible assets.

In the case of the value of in-place leases, we make estimates based on the evaluation of the specific characteristics of each tenant’s lease.

Factors considered include estimates of carrying costs during the hypothetical expected lease-up periods, market conditions and costs to execute similar leases.

The following is a summary of the carrying amount of intangible assets as of March 31, 2026 and December 31, 2025 (in thousands) :

March 31, 2026

December 31, 2025

In-place leases

Tax abatement intangible

(1) Included in the Buildings and improvements line item in our Consolidated Balance Sheets .

Increase relates to acquisition of a portfolio of three seniors housing communities during 2026 within our SHOP segment.

Owned Real Properties for more information regarding our SHOP segment acquisitions.

(2) Included in the Accumulated depreciation and amortization line item in our Consolidated Balance Sheets .

(3) Included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets .

The following table provides future amortization expenses related to the intangible assets at March 31, 2026 ( in thousands ):

April-December

In-place leases (1)

Tax abatement intangible (2)

(1) Recorded as amortization expense included in the Depreciation and amortization line item on our Consolidated Statements of Income.

(2) Recorded as Triple-net lease property tax expense on our Consolidated Statements of Income .

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Debt Obligations

Unsecured Credit Facility.

We had an unsecured credit agreement (the “Original Credit Agreement”) that provided for an aggregate commitment of the lenders of up to $ 525,000,000 comprising of a $ 425,000,000 revolving credit facility and two $ 50,000,000 term loans with maturities of November 19, 2025 and November 19, 2026 (the “Original Term Loans”).

The Original Credit Agreement had a maturity date of November 19, 2026 and permitted us to request increases to the revolving credit facility and term loans commitments up to a total of $ 1,000,000 (the “Original Accordion”).

During the third quarter of 2025, we entered into a new four-year unsecured credit agreement (the “Credit Agreement”) maturing in July 2029, to replace the Original Credit Agreement.

The Credit Agreement increased the aggregate commitment on our revolving line of credit from $ 425,000,000 to $ 600,000,000 (the “Revolving Line of Credit”), provides for the opportunity to increase the total commitment to an aggregate $ 1,200,000,000 (the “Accordion”) and allows for a one-year extension option, subject to customary conditions.

Material terms of the Credit Agreement remain unchanged.

In connection with the Credit Agreement, the Original Term Loans were rolled into the Revolving Line of Credit.

During the fourth quarter of 2025, we amended our Credit Agreement to increase the aggregate commitment of the lenders by $ 200,000,000 to a total of $ 800,000,000 through the exercise of the Accordion and established term loans totaling $ 200,000,000 (the “Term Loans”).

The Term Loans consist of $ 50,000,000 , $ 55,000,000 , $ 55,000,000 and $ 40,000,000 borrowings, with contractual maturities of three , four , five and seven years , respectively.

Based on our leverage at March 31, 2026, the facility provides for interest annually at SOFR plus 110 basis points and a facility fee of 15 basis points.

Interest Rate Swap Agreements.

In connection with entering into the Term Loans described above, we entered into two receive variable/pay fixed interest rate swap agreements (the “Interest Rate Swaps”) with maturities of November 19, 2025 and November 19, 2026, respectively, that effectively locked in the forecasted interest payments on the Term Loans’ borrowings over their four and five year terms of the loans.

In connection with entering into the Original Term Loans described above, we entered into two receive variable/pay fixed interest rate swap agreements with maturities of November 19, 2025 and November 19, 2026, respectively, that effectively locked in the forecasted interest payments on the Original Term Loans’ borrowings over their four and five year terms of the loans.

Additionally, during the fourth quarter of 2025, we entered into interest rate swaps with maturities of three , four , five and seven years , respectively (the “Interest Rate Swaps”) to effectively lock-in the forecasted interest payments on the Term Loans.

The Interest Rate Swaps are considered cash flow hedges and are recorded on our Consolidated Balance Sheets at fair value in Prepaid expenses and other assets , with cumulative changes in the fair value of these instruments recognized in Accumulated other comprehensive income (loss) on our Consolidated Balance Sheets .

As discussed above, during the three months ended September 30, 2025, the Term Loans were paid off using proceeds from our new revolving line of credit under our New Credit Agreement, keeping the Interest Rate Swaps intact through November 2025 at 2.3 % and November 2026 at 2.4 %, based on current margins.

During the three and nine months ended September 30, 2025, we recorded a decrease of $ 729,000 and $ 2,356,000 to the fair value of Interest Rate Swaps, respectively.

During the three and nine months ended September 30, 2024, we recorded a decrease of $ 2,326,000 and $ 2,471,000 to the fair value of Interest Rate Swaps, respectively.

During the three months ended March 31, 2026 and 2025, we recorded an increase of $ 1,074,000 and a decrease of $ 910,000 to the fair value of Interest Rate Swaps, respectively.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Information regarding our Interest Rate Swaps measured at fair value, which are classified as Level 2 of the fair value hierarchy, is presented below ( dollar amounts in thousands ):

1 unchanged sentence

Maturity Date

September 30, 2025

March 31, 2026

December 31, 2025

1 unchanged sentence

November 19, 2026

November 2021

November 19, 2026

December 2025

December 12, 2028

SOFR with 5-day lookback

December 2025

December 12, 2028

SOFR with 5-day lookback

December 2025

December 12, 2029

SOFR with 5-day lookback

December 2025

December 12, 2030

SOFR with 5-day lookback

December 2025

December 12, 2030

SOFR with 5-day lookback

December 2025

December 12, 2032

SOFR with 5-day lookback

December 2025

December 12, 2032

SOFR with 5-day lookback

(1) During the third quarter of 2025, the interest rate swap was rolled into the Revolving Line of Credit.

Senior Unsecured Notes.

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● a ratio of EBITDA, as calculated in the debt obligation, to fixed charges not less than 1.50 to 1.0.

At September 30, 2025, we were in compliance with all applicable financial covenants.

At March 31, 2026, we were in compliance with all applicable financial covenants.

These debt obligations also contain additional customary covenants and events of default that are subject to a number of important and significant limitations, qualifications and exceptions.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

The following table sets forth information regarding debt obligations by component as of September 30, 2025 and December 31, 2024 ( dollar amounts in thousands):

At September 30, 2025

The following table sets forth information regarding debt obligations by component as of March 31, 2026 and December 31, 2025 ( dollar amounts in thousands):

At March 31, 2026

At December 31, 2025

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Senior unsecured notes, net of debt issue costs

(1) Represents weighted average interest rate as of September 30, 2025.

(2) Subsequent to September 30, 2025, we repaid $ 62,900 under our unsecured revolving line of credit.

Accordingly, we have $ 485,550 outstanding and $ 114,450 available for borrowing under our unsecured revolving line of credit.

During the nine months ended September 30, 2025 and 2024, our debt borrowings and repayments were as follows ( in thousands ):

Nine Months Ended September 30,

(1) Represents weighted average interest rate as of March 31, 2026.

(2) Subsequent to March 31, 2026, we repaid $ 56,000 under our unsecured revolving line of credit.

Accordingly, we have $ 226,963 outstanding and $ 373,037 available for borrowing under our unsecured revolving line of credit as of May 6, 2026.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

During the three months ended March 31, 2026 and 2025, our debt borrowings and repayments were as follows ( in thousands ):

Three Months Ended March 31,

Debt Obligations

1 unchanged sentence

Senior unsecured notes

(1) Subsequent to September 30, 2025, we repaid $ 62,900 under our unsecured revolving line of credit.

Accordingly, we have $ 485,550 outstanding and $ 114,450 available for borrowing under our unsecured revolving line of credit.

(1) Subsequent to March 31, 2026, we repaid $ 56,000 under our unsecured revolving line of credit.

Accordingly, we have $ 226,963 outstanding and $ 373,037 available for borrowing under our unsecured revolving line of credit as of May 6, 2026.

Accrued Expenses and Other Liabilities

The following is a summary of our accrued expenses and other liabilities ( dollar amounts in thousands ):

September 30, 2025

The following is a summary of our accrued expenses and other liabilities at March 31, 2026 and December 31, 2025 ( in thousands ):

March 31, 2026

December 31, 2025

Security deposits

SHOP liabilities

Property tax liability

1 unchanged sentence

Accounts payable and other accrued liabilities

SHOP liabilities

Deferred commitments

Lease liabilities

SHOP deferred revenue

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Deferred commitments

Security deposits

Non-controlling Interests.

We have entered into partnerships to develop and/or own real estate.

Given that our limited members do not have the substantive kick-out rights, liquidation rights, or participation rights, we have concluded that the partnerships are VIEs.

Given that our limited members do not have substantive kick-out rights, liquidation rights, or participation rights, we have concluded that the partnerships are VIEs.

As we exercise power over and receive benefits from the VIEs, we are considered the primary beneficiary.

Accordingly, we consolidate the VIEs and record the non-controlling interests on the consolidated financial statements.

As of September 30, 2025, we have the following consolidated VIEs (in thousands):

Accordingly, we consolidate the VIEs and record the non-controlling interests on our Consolidated Balance Sheets .

As of March 31, 2026, we have the following consolidated VIEs (in thousands):

Non-Controlling

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Own real estate

(1) Includes the total real estate investments and excludes intangible assets.

During the nine months ended September 30, 2025, we acquired our JV partner’s non-controlling interest in a JV that owns two seniors housing communities in Oregon with a total of 186 units for $ 1,150,000 resulting in us controlling full ownership of these communities.

As a result, these VIEs are not listed in the table above.

Common Stock.

We had separate equity distribution agreements (collectively, the “Original Equity Distribution Agreements”) to offer and sell, from time to time, up to $ 200,000,000 in aggregate offering price of shares of our common stock.

During the fourth quarter of 2024, we terminated our Original Equity Distribution Agreements and entered into a new equity distribution agreement (the “Equity Distribution Agreement”) to offer and sell, from time to time, up to $ 400,000,000 in aggregate offering price of shares of our common stock.

The Equity Distribution Agreement provides for sales of common shares to be made by means of ordinary brokers’ transactions, which may include block trades, or transactions that are deemed to be “at the market” offerings.

During the three months ended March 31, 2026, a lessee, which was also our joint venture partner in a VIE for which we were the primary beneficiary, exercised its purchase option and acquired three skilled nursing centers owned by the JV.

The centers have a total of 299 beds and are located in Florida

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

During the nine months ended September 30, 2025, we sold 1,655,100 shares of common stock for $ 59,316,000 in net proceeds under our Equity Distribution Agreement.

with an aggregate gross book value of $ 76,545,000 .

Our JV partner’s non-controlling interest contribution was $ 14,325,000 .

As a result, this VIE is not listed in the table above.

Common Stock.

We have an equity distribution agreement (the “Equity Distribution Agreement”) to offer and sell, from time to time, up to $ 400,000,000 in aggregate offering price of shares of our common stock.

During the three months ended March 31, 2026, we sold 1,145,565 shares of common stock for $ 43,412,000 in net proceeds under our Equity Distribution Agreement.

In conjunction with the sale of common stock, we incurred $ 550,000 of costs associated with this agreement, which have been recorded in additional paid in capital as a reduction of proceeds received.

At September 30, 2025, we had $ 330,271,000 available under the Equity Distribution Agreement.

Subsequent to September 30, 2025, we sold 281,400 shares of common stock for $ 10,260,000 in net proceeds under our Equity Distribution Agreement.

Accordingly, we have $ 319,881,000 available under the Equity Distribution Agreement.

During the nine months ended September 30, 2024, we sold 1,886,900 shares of common stock for $ 65,629,000 in net proceeds under our Original Equity Distribution Agreements.

At March 31, 2026, we had $ 244,548,000 available under the Equity Distribution Agreement.

Subsequent to March 31, 2026, we sold 1,402,933 shares of common stock for $ 51,917,000 in net proceeds under our Equity Distribution Agreement.

Accordingly, as of May 6, 2026, we have $ 192,353,000 available under the Equity Distribution Agreement.

During the three months ended March 31, 2025, we sold 238,100 shares of common stock for $ 8,485,000 in net proceeds under our Equity Distribution Agreement.

In conjunction with the sale of common stock, we incurred $ 74,000 of costs associated with this agreement, which have been recorded in additional paid in capital as a reduction of proceeds received.

During the nine months ended September 30, 2025 and 2024, we acquired 151,018 shares and 49,540 shares, respectively, of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.

During the three months ended March 31, 2026 and 2025, we acquired 149,745 and 138,010 , respectively, shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.

Available Shelf Registration.

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We declared and paid the following cash dividends (in thousands) :

Nine Months Ended September 30,

Three Months Ended March 31,

Common Stock (1)

(1) Represents $ 0.19 per share per month for the nine months ended September 30, 2025 and 2024.

(1) Represents $ 0.19 per share per month for the three months ended March 31, 2026 and 2025.

(2) Includes $ 1,301 of distribution related to vesting of the performance-based stock units.

In October 2025, we declared a monthly cash dividend of $ 0.19 per share on our common stock for the months of October, November and December 2025 , payable on October 31 , November 28 , and December 31, 2025 , respectively, to stockholders of record on October 23 , November 20 , and December 23, 2025 , respectively.

(3) Includes $ 1,236 of distribution related to vesting of the performance-based stock units.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

In April 2026, we declared a monthly cash dividend of $ 0.19 per share on our common stock for the months of April, May and June 2026 , payable on April 30 , May 29 and June 30, 2026 , respectively, to stockholders of record on April 22 , May 21 , and June 22, 2026 , respectively.

Stock-Based Compensation .

3 unchanged sentences

Under the 2021 Plan, the shares were authorized and reserved for awards to officers, employees, non-employee directors and consultants.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

terms of the awards granted under the 2021 Plan and the 2015 Plan are set by our compensation committee at its discretion.

The terms of the awards granted under the 2021 Plan and the 2015 Plan are set by our compensation committee at its discretion.

Beginning in the first quarter of 2024, we entered into Performance Stock Unit Award Agreements, based upon absolute and relative total shareholder return, under the 2021 Plan.

During the nine months ended September 30, 2025 and 2024, no stock options were granted or exercised.

During the nine months ended September 30, 2024, 5,000 stock options expired and were cancelled.

At September 30, 2025 and 2024, we had no stock options outstanding and exercisable.

The following table summarizes our restricted stock activity for the nine months ended September 30, 2025 and 2024 :

Nine Months Ended September 30,

The following table summarizes our restricted stock activity for the three months ended March 31, 2026 and 2025 :

Three Months Ended March 31,

Weighted Average Price

Outstanding, January 1

Outstanding, September 30

(1) Includes the accelerated vesting of 13,362 shares of restricted common stock in connection with an employee’s retirement.

During the nine months ended September 30, 2025, 182,915 units of performance-based stock units vested, which includes the accelerated vesting of 19,694 performance-based stock units in connection with an employee’s retirement.

No performance-based stock units vested during the nine months ended September 30, 2024.

During the nine months ended September 30, 2025 and 2024, we granted restricted stock and performance-based stock units under the 2021 Plan as follows:

Outstanding, March 31

During the three months ended March 31, 2026 and 2025, 170,827 and 163,221 performance-based stock units vested, respectively.

During the three months ended March 31, 2026 and 2025, we granted restricted stock and performance-based stock units under the 2021 Plan as follows:

Vesting Period

1 unchanged sentence

ratably over 3 years

Restricted stock

April 30, 2028

Restricted stock

Performance-based stock units

8 unchanged sentences

TSR targets (2)

Restricted stock

(1) Vesting date is the earlier of the one-year anniversary of the award date and the date of the next annual meeting of the stockholders of LTC following the award date.

(1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in three years .

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the nine months ended September 30, 2024 was $ 6,791,000 .

Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the nine months ended September 30, 2025, was $ 7,188,000 , which includes $ 700,000 of compensation expense related to accelerated vesting of restricted common stock and performance-based stock units in connection with an employee’s retirement.

Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the three months ended March 31, 2026 and 2025 was $ 2,064,000 and $ 2,253,000 , respectively.

Accordingly, the remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows (in thousands):

October-December 2025

April-December 2026

Commitments and Contingencies

At September 30, 2025, we had commitments as follows (in thousands):

Triple-Net properties

SHOP properties

owned real estate properties ( Note 3.

Real Estate Investments )

Financing receivables ( Note 3.Real Estate Investments)

Accrued incentives and earn-out liabilities (Note 6.

Lease Incentives)

At March 31, 2026, we had commitments as follows (in thousands):

Triple-Net Portfolio

owned real properties ( Note 3.

Owned Real Property Investments )

Financing receivables ( Note 4.

Financing Receivables)

Accrued incentives and earn-out liabilities

Mortgage loans ( Note 5.

Real Estate Investments )

Joint venture investments ( Note 4.

Investments in Unconsolidated Joint Ventures )

Mortgage Loan Receivables )

Notes receivable ( Note 7.

6 unchanged sentences

For more information regarding the purchase option see Note 3.

Real Estate Investments .

Owned Real Properties .

(3) Represents $ 45,620 related to two construction loans, $ 19,950 of contingent commitments available upon the borrower achieving certain coverage ratios, and $ 2,200 of other commitments.

(4) Represents expenditure reserve of $ 1,438 related to a mortgage loan secured by a SNF in Texas.

The loan is accounted for as an unconsolidated JV in accordance with GAAP.

For more information regarding this loan see Note 4.

Investment in Unconsolidated Joint Ventures .

(4) Represents working capital loan commitments.

Additionally, some of our lease agreements provide purchase options allowing the lessee to purchase the properties they currently lease from us.

Real Estate Investments for a table summarizing information about our purchase options.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Owned Real Properties for a table summarizing information about our purchase options.

We are a party from time to time to various general and professional liability claims and lawsuits asserted against the lessees or borrowers of our properties, which in our opinion are not singularly or in the aggregate material to our results of operations or financial condition.

2 unchanged sentences

We intend to continue to vigorously defend such claims.

Major Operators

Within our real estate investment segment, two operators each account for approximately 10% or more of our Total revenues .

Our SHOP segment is not subject to operator concentration, as the communities are operated on our behalf by independent operators under management agreements.

In addition, resident agreements are entered into with individual residents.

Accordingly, we are not exposed to operator credit risk to the same extent as within our real estate investment segment.

The following table presents information regarding our major operators as of September 30, 2025:

Percentage of

Prestige Healthcare (3)

ALG Senior Living (4)

(1) Includes total revenues for the nine months ended September 30, 2025.

(2) Represents the net carrying value of the mortgage loans and properties we own divided by the Total assets on the Consolidated Balance Sheets.

(3) The majority of the revenue derived from this operator relates to interest income from mortgage loans.

(4) The majority of the revenue derived from this operator relates to interest income from financing receivables.

Our financial position and ability to make distributions may be adversely affected if Prestige Healthcare, ALG Senior Living or any of our lessees and borrowers face financial difficulties, including any bankruptcies, inability to emerge from bankruptcy, insolvency or general downturn in business of any such operator, or in the event any such operator does not renew and/or extend its relationship with us.

LTC PROPERTIES, INC.

3 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Net (loss) income

Less income allocated to non-controlling interests

Less income allocated to participating securities:

Non-forfeitable dividends on participating securities

Income allocated to participating securities

Total net income allocated to participating securities

Net (loss) income available to common stockholders

Effect of dilutive securities:

Participating securities (2)

Net (loss) income for diluted net income per share

Less non-forfeitable dividends on participating securities

Net income available to common stockholders–basic and diluted

Shares for basic net income per share

1 unchanged sentence

Performance-based stock units

Participating securities (2)

Total effect of dilutive securities

2 unchanged sentences

Diluted net income per share

(1) The computation of the net income per share for the three and nine months ended September 30, 2024 are made independently.

Therefore, the sum of the quarters may not agree with the amounts for the year-to-date periods.

(2) For the three and nine months ended September 30, 2025 and 2024, the participating securities were excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive.

(3) For the three months ended September 30, 2025, the performance-based stock units were excluded from the calculation of the shares for diluted net income per share as such inclusion would be anti-dilutive.

Fair Value Measurements

5 unchanged sentences

We do not invest our cash in auction rate securities.

The carrying value and estimated fair value of our financial instruments as of September 30, 2025 and December 31, 2024 were as follows ( in thousands ):

At September 30, 2025

The carrying value and estimated fair value of our financial instruments as of March 31, 2026 and December 31, 2025 were as follows ( in thousands ):

At March 31, 2026

At December 31, 2025

7 unchanged sentences

The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows.

The discount rate used to value our future cash inflows of the financing receivables at September 30, 2025 and December 31, 2024 was 7.5 % and 7.7 % , respectively.

The discount rate used to value our future cash inflows of the financing receivables was 7.5 % for both March 31, 2026 and December 31, 2025.

(2) Our investment in mortgage loans receivable is classified as Level 3.

1 unchanged sentence

The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments.

The discount rate used to value our future cash inflows of the mortgage loans receivable at September 30, 2025 and December 31, 2024 was 9.3 % and 10.0 % , respectively.

The discount rate used to value our future cash inflows of the mortgage loans receivable was 8.8 % for both March 31, 2026 and December 31, 2025.

(3) Our investments in notes receivable are classified as Level 3.

The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments.

The discount rate used to value our future cash flows of the notes receivable at September 30, 2025 and December 31, 2024 was 7.7 % and 7.6 % , respectively.

The discount rate used to value our future cash flows of the notes receivable at March 31, 2026 and December 31, 2025 was 7.8 % and 7.7 % , respectively.

(4) Our revolving line of credit and term loans bear interest at a variable interest rate.

The estimated fair value of our revolving line of credit and term loans approximated their carrying values at September 30, 2025 and December 31, 2024 upon prevailing market interest rates for similar debt arrangements.

During the three months ended September 30, 2025, the Term Loans were rolled into our new revolving line of credit.

The estimated fair value of our revolving line of credit and term loans approximated their carrying values at March 31, 2026 and December 31, 2025 based upon prevailing market interest rates for similar debt arrangements.

(5) Our obligation under our senior unsecured notes is classified as Level 3 and thus the fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows.

The discount rate is measured based upon management’s estimates of rates currently prevailing for comparable loans available to us, and instruments of comparable maturities.

At September 30, 2025, the discount rate used to value our future cash outflow of our senior unsecured notes was 5.25 % for those maturing before 2030 and 5.5 % for those maturing at or beyond 2030.

At March 31, 2026, the discount rate used to value our future cash outflow of our senior unsecured notes was 5.75 % for those maturing before 2030 and 6.0 % for those maturing at or beyond 2030.

At December 31, 2025, the discount rate used to value our future cash outflow of our senior unsecured notes was 5.25 % for those maturing before year 2030 and 5.50 % for those maturing at or beyond year 2030.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Segment Information

6 unchanged sentences

determine whether there are multiple operating segments requiring presentation as separate reportable segments.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

During the nine months ended September 30, 2025 and 2024, the CODM has been collectively identified as our Executive Chairman and Co-CEOs, who share the responsibility for allocating resources and assessing segment performance.

During the three months ended March 31, 2026 and 2025, the CODM has been collectively identified as our Executive Chairman and Co-CEOs, who share the responsibility for allocating resources and assessing segment performance.

During the second quarter of 2025, we began utilizing the RIDEA structure and established our SHOP segment.

3 unchanged sentences

Non-GAAP Financial Measures .

Summary information by reportable segment for the three and nine months ended September 30, 2025 is as follows (unaudited, in thousands):

Three Months Ended September 30, 2025

investment portfolio

Rental income

Resident fees and services

Interest income from financing receivables

Interest income from mortgage loans

Interest and other income

Total revenues

Income from unconsolidated joint ventures

Property level expenses

Interest expense

Depreciation and amortization

Write-off of effective interest receivable

Provision for credit losses

Transaction costs

General and administrative expenses

Loss on sale of real estate, net

Income tax expense

Nine Months Ended September 30, 2025

Summary information by reportable segment for the three months ended March 31, 2026 is as follows (unaudited, in thousands):

Three Months Ended March 31, 2026

investment portfolio

9 unchanged sentences

Depreciation and amortization

Write-off of effective interest receivable

Provision for credit losses

Recovery for credit losses

Transaction costs

1 unchanged sentence

Loss on sale of real estate, net

Income tax benefit

Income tax provision

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

During the three and nine months ended September 30, 2024, we operated under one reportable segment .

Summary information by reportable segment for the three and nine months ended September 30, 2024 is as follows ( unaudited, in thousands ):

Three Months Ended September 30, 2024

investment portfolio

Rental income

Resident fees and services

Interest income from financing receivables

Interest income from mortgage loans

Interest and other income

Total revenues

Income from unconsolidated joint ventures

Property level expenses

Interest Expense

Depreciation and Amortization

Impairment Loss

Transaction costs

Recovery for credit losses

General and administrative expenses

Gain on sale of real estate, net

Income tax benefit

Nine Months Ended September 30, 2024

During the three months ended March 31, 2025, we operated under one reportable segment.

Summary information by reportable segment for the three months ended March 31, 2025 is as follows ( unaudited, in thousands ):

Three Months Ended March 31, 2025

investment portfolio

9 unchanged sentences

Depreciation and amortization

Impairment Loss

Transaction costs

Recovery for credit losses

Provision for credit losses

General and administrative expenses

1 unchanged sentence

Income tax benefit

Total assets by reportable business segment and segment-level significant expense categories are not disclosed as our CODM do not review such information to evaluate business performance and allocate resources.

Total assets by reportable business segment and segment-level significant expense categories are not disclosed as our CODM is not provided with such information to evaluate business performance and allocate resources.

LTC PROPERTIES, INC.

6 unchanged sentences

Resident fees and services revenue and related operating expenses for these facilities are reported on our Consolidated Statements of Income and are subject to federal, state and local income taxes.

Our provision for income taxes for the three and nine months ended September 30, 2025, was an expense of $ 42,000 and a benefit of $ 39,000 , respectively.

At September 30, 2025, our deferred income tax assets and deferred income tax liabilities with respect to our TRS entity were $ 332,000 and $ 80,000 , respectively.

Our provision for income taxes for the three months ended March 31, 2026, was an expense of $ 110,000 .

At March 31, 2026, our deferred income tax assets and deferred income tax liabilities with respect to our TRS entity were $ 198,000 and $ 0 , respectively.

Subsequent Events

Subsequent to September 30, 2025, the following events occurred:

We acquired an 88 -unit seniors housing community within our SHOP segment in Georgia for $ 22,900,000 .

Subsequent to March 31, 2026, the following events occurred:

We acquired a 61 -unit seniors housing community within our SHOP segment in Illinois for $ 9,205,000 .

In conjunction with the acquisition, we entered into a management agreement with an operator new to us.

Property Sales.

We sold two skilled nursing centers in Florida totaling 240 beds for $ 43,000,000 .

We received $ 41,900,000 of net proceeds and expect to record a gain on sale of approximately $ 26,000,000 .

Additionally, we sold five skilled nursing centers in Virginia ( 4 ) and California ( 1 ) with a total of 656 beds for an aggregate sales price of $ 79,950,000 .

We will use the total proceeds of $ 78,900,000 in a 1031 exchange for the acquisitions within our SHOP segment and anticipate recording an aggregate gain on sale of approximately $ 52,000,000 .

These seven properties had an aggregate gross book value and net book value of $ 71,742,000 and $ 42,458,000 , respectively.

Additionally, we terminated a triple-net master lease and converted two seniors housing communities covered under the master lease to our SHOP segment.

Upon conversion, we entered into a management agreement with another operator, also new to us.

The communities are located in Georgia and South Carolina with a total of 159 units and an aggregate gross book value of $ 32,361,000 .

Unconsolidated Joint Ventures.

A $ 12,558,000 mortgage loan receivable which was accounted for as an unconsolidated joint venture was paid off.

The mortgage loan was secured by first mortgage on a 104 -bed skilled nursing center in Texas.

We repaid $ 56,000,000 under our unsecured revolving line of credit.

Accordingly, we have $ 485,550,000 outstanding and $ 114,450,000 available for borrowing under our unsecured revolving line of credit.

Accordingly, as of May 6, 2026, we have $ 226,963,000 outstanding and $ 373,037,000 available for borrowing under our unsecured revolving line of credit.

We sold 1,402,933 shares of common stock for $ 51,917,000 in net proceeds under our Equity Distribution Agreements.

Accordingly, we have $ 319,881,000 available under our Equity Distribution Agreements.

Additionally, we declared a monthly cash dividend of $ 0.19 per share on our common stock for the months of October, November and December 2025 , payable on October 31 , November 28 , and December 31, 2025 , respectively to stockholders of record on October 23 , November 20 , and December 23, 2025 , respectively.

Accordingly, as of May 6, 2026, we have $ 192,353,000 available under our Equity Distribution Agreements.

Additionally, we declared a monthly cash dividend of $ 0.19 per share on our common stock for the months of April, May and June 2026, payable on April 30 , May 29 and June 30, 2026 , respectively to stockholders of record on April 22 , May 21 , and June 22, 2026 , respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements