What changed in this filing

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Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 292 added, 248 removed, 621 unchanged (47% of the section changed)

3 unchanged sentences

(amounts in thousands, except per share)

March 31, 2026

June 30, 2026

December 31, 2025

Buildings and improvements

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

2026—$ 4,523 ;

Accumulated depreciation and amortization

42 unchanged sentences

Three Months Ended

Six Months Ended

Rental income

7 unchanged sentences

Seniors housing operating expenses

(Recovery) provision for credit losses

Provision (recovery) for credit losses

Transaction costs

3 unchanged sentences

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

(Loss) gain on sale of real estate, net

Gain on sale of real estate, net

Income from unconsolidated joint ventures

Income tax provision

Income tax (provision) benefit

Income allocated to non-controlling interests

9 unchanged sentences

(amounts in thousands, unaudited)

Three Months Ended

Three Months Ended June 30,

Six Months Ended June 30,

Unrealized gain (loss) on cash flow hedges before reclassification

21 unchanged sentences

( 1,879,101 )

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

Acquisitions of non-controlling interest

Non-controlling interest distributions

Balance—June 30, 2025

( 1,905,398 )

Balance—December 31, 2025

10 unchanged sentences

( 1,988,407 )

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

Non-controlling interest distributions

Balance—June 30, 2026

( 2,018,188 )

LTC PROPERTIES, INC.

1 unchanged sentence

(amounts in thousands, unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES:

2 unchanged sentences

Stock-based compensation expense

Loss (gain) on sale of real estate, net

Income tax provision

Gain on sale of real estate, net

Income tax provision (benefit)

Income from unconsolidated joint ventures

3 unchanged sentences

Adjustment for collectability of lease incentives

Effective interest income

Amortization of lease incentives

18 unchanged sentences

Principal payments received on notes receivable

Net cash (used in) provided by investing activities

Net cash used in investing activities

FINANCING ACTIVITIES:

Net borrowings under revolving line of credit

Net (repayments) borrowings under revolving line of credit

Repayment of debt

4 unchanged sentences

Financing costs paid

Cash paid for taxes in lieu of shares upon vesting of restricted stock

Cash paid for taxes in lieu of shares upon vesting of long-term equity incentives

Net cash provided by (used in) financing activities

Increase in cash and cash equivalents

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

9 unchanged sentences

See accompanying notes.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Description of Business

5 unchanged sentences

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 %).

As of June 30, 2026, our total gross investment portfolio included owned real properties subject to non-cancellable triple-net leases (“NNN” or “Triple-Net Portfolio”) ( 39.5 %), SHOP ( 32.1 %), properties we own accounted for as financing receivables ( 11.5 %), mortgage loans receivable secured by first mortgages ( 15.9 %) and notes receivable ( 1.0 %).

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.

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

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

6 unchanged sentences

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

The results of operations for the three and six months ended June 30, 2026 and 2025 are not necessarily indicative of the results for a full year.

Principles of Consolidation

10 unchanged sentences

See Note 17-Segment Information for more information.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

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) :

Our owned real properties include 92 properties within our Triple-Net Portfolio leased to 16 different operators and 34 properties within our SHOP segment managed on our behalf by 11 independent operators under separate management agreements.

The following tables summarize our investments in owned properties at June 30, 2026 (dollar amounts in thousands) :

Type of Property

11 unchanged sentences

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

(3) Subsequent to June 30, 2026, we acquired five SHs within our SHOP segment for an aggregate purchase price of $ 207,850 .

The communities have an aggregate of 495 units and are located in Colorado, Minnesota (2), New Mexico and Wisconsin.

Additionally, we sold a 99 -bed SNF in Oregon for $ 34,200 .

The property had a gross book value and net book value of $ 5,177 and $ 654 , respectively.

Owned Real Properties–SHOP

3 unchanged sentences

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.

During the six months ended June 30, 2026, we continued to expand our SHOP segment.

Accordingly, we acquired five seniors housing communities within our SHOP segment for $ 171,455,000 .

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

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:

Also, we terminated two additional triple-net master leases and converted four seniors housing communities covered under these master leases into our SHOP segment.

Upon conversion, we entered into management agreements with two operators new to us.

The communities are located in Georgia, South Carolina and Texas (2) with a total of 247 -units and an aggregate gross book value of $ 59,387,000 .

As of June 30, 2026, our SHOP segment represented 32.1 % of our gross portfolio investments and comprised of 34 seniors housing communities that are managed on our behalf by 11 independent operators pursuant to separate management agreements.

The following table presents information related to our SHOP segment as of June 30, 2026 ( dollar amounts in thousands ):

(1) Subsequent to June 30, 2026, we acquired the following five additional communities within our SHOP segment and we entered into three management agreements with three independent operators:

New Mexico & Colorado

During the six months ended June 30, 2026 and 2025, we acquired the following communities within our SHOP segment ( dollar amounts in thousands ):

Type of Property

1 unchanged sentence

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.

(1) Subsequent to June 30, 2026, we acquired the following five additional communities within our SHOP segment and entered into three management agreements with three independent operators:

New Mexico & Colorado

(2) Excludes $ 217 of additional costs incurred related to 2025 acquisitions.

Additionally, at acquisition, we received property tax proration credits of $ 381 .

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

The total acquisition costs allocated to SHOP assets acquired were as follows ( dollar amounts in thousands ):

Buildings and improvements

1 unchanged sentence

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

During the six months ended June 30, 2026 and 2025, we funded capital improvement projects of $ 5,275,000 and $ 91,000 , respectively, within our SHOP segment.

Owned Real Properties–Triple-Net Portfolio

4 unchanged sentences

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):

The following table provides information related to our triple-net lease extensions during the six months ended June 30, 2026 and 2025 (dollar amounts in thousands):

Type of Property

December 31, 2027

December 31, 2032

October 31, 2026

October 31, 2030

April 30, 2026

April 30, 2031

December 31, 2025

December 31, 2026

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

See Purchase Options below for more information.

February 28, 2025

February 28, 2026

February 28, 2031

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 August 2026.

(2) During the third quarter of 2025, the operator provided an election notice to exercise its purchase option, and the properties were sold during the second quarter of 2026.

See Properties Sold 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.

During the six months ended June 30, 2026, we terminated two triple-net master leases and converted four seniors housing communities covered under the master leases into our SHOP segment.

Upon conversion, we entered into management agreements with two independent operators.

The communities are located in Georgia, South Carolina and Texas (2) with a total of 247 units and an

aggregate gross book value of $ 59,387,000 .

During the six months ended June 30, 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.

1 unchanged sentence

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

Also, during the six months ended June 30, 2025, we terminated our Anthem triple-net master leases and converted the communities covered under the master leases into our SHOP segment.

In conjunction with the conversion, we wrote-off Anthem’s working capital note of $ 2,693,000 and the related interest receivable of $ 371,000 during the six months ended June 30, 2025.

In addition, we terminated our triple-net lease with New Perspective Senior Living, LLC (“New Perspective”) 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.

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):

The following table summarizes components of our rental income for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended

Six Months Ended

Rental Income

4 unchanged sentences

Amortization of lease incentives

(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.

(1) Decreased primarily due to the conversion of communities from NNN to the SHOP segment and lower rent due to 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 and six months ended June 30, 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 a master lease and converting the communities covered under the master lease into our SHOP segment, we wrote-off lease incentive balance of $ 13 .

(4) 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 .

2 unchanged sentences

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.

During the six months ended June 30, 2026, we wrote-off lease incentive balance of $ 13,000 , in connection with the termination of a master lease and converting the communities covered under the master lease into our SHOP segment.

During the six months ended June 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.

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

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):

The following table summarizes information about purchase options included in our lease agreements as of June 30, 2026 (dollar amounts in thousands):

Investments (1)

South Carolina

Colorado/Kansas/Ohio/Texas

5 unchanged sentences

Commitments and Contingencies.

(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,

During the six months ended June 30, 2026 and 2025, we invested in the following capital improvement projects within our Triple-Net Portfolio ( dollar amounts in thousands ):

Six Months Ended June 30,

Type of Property

1 unchanged sentence

Skilled Nursing Centers

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Properties Held-for-Sale

The following table summarizes our held-for-sale properties as of June 30, 2026 and December 31, 2025 (dollar amounts in thousands):

At June 30, 2026

At December 31, 2025

(1) Subsequent to June 30, 2026, this property was sold.

Properties Sold

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.

During the six months ended June 30, 2026 and 2025, we recognized a net gain on sale of real estate of $ 7,552,000 and $ 503,000 , respectively.

The following table summarizes property sales during the six months ended June 30, 2026 and 2025 (dollar amounts in thousands):

Gain (Loss) (1)

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

(2) Subsequent to June 30, 2026, we sold a 99 -bed skilled nursing center in Oregon for $ 34,200 .

The property had a gross book value and a net book value of $ 5,177 and $ 654 , respectively.

At June 30, 2026, this property met the criteria under GAAP as held-for-sale.

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

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

Financing Receivables

4 unchanged sentences

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 .

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 ):

The following tables provide information regarding our investments in financing receivables at June 30, 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.

(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,

The following table summarizes our financing receivable activity for the six months ended June 30, 2026 and 2025 ( in thousands ):

Six Months Ended June 30,

Investment and funding under financing receivables

4 unchanged sentences

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.

(1) During the three months ended March 31, 2026, the lessee exercised its purchase option pursuant to its master lease to acquire three skilled nursing centers in Florida with a total of 299 beds.

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

(2) Represents a non-cash distribution made in connection with the payoff discussed in (1) above.

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) :

The following table sets forth information regarding our investments in mortgage loans secured by first mortgages at June 30, 2026 (dollar amounts in thousands) :

Interest Rate

3 unchanged sentences

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.

(2) During 2025, we modified the mortgage loan with Prestige, the borrower, to provide Prestige an option to prepay their mortgage loan at par without penalty within a 12-month window beginning in July 2026.

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.

1 unchanged sentence

During the three months ended March 31, 2026, Prestige provided notice of its intent to repay its $ 179,875 mortgage loan.

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

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

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

3 unchanged sentences

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

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

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,

The following table summarizes our mortgage loan activity for the six months ended June 30, 2026 and 2025 (in thousands):

Six Months Ended June 30,

Originations and funding under mortgage loans receivable

13 unchanged sentences

Our remaining commitment is $ 1,517 .

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.

The 8.8 % interest-only loan matures in March 2027 and includes two one-year extension options, 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.

(a) $ 38,495 under a $ 42,300 mortgage loan commitment secured by a 250 -unit SH in Florida.

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

(b) $ 3,040 under our $ 19,500 mortgage loan commitment discussed in (1) (b) above .

Investment in Unconsolidated Joint Ventures

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:

We had a $ 12,700,000 acquisition, development and construction (“ADC”) mortgage loan with a carrying value of $ 12,558,000 .

The ADC mortgage loan, secured by a 104 -bed skilled nursing center in Texas, met the accounting criteria to be considered a variable interest entity (“VIE”).

We were not the primary beneficiary of the VIE as we did 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 .

In accordance with GAAP, this mortgage loan was determined to be an ADC loan and is accounted for as an unconsolidated JV.

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

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

However, we had significant influence over the VIE.

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

During the three months ended June 30, 2026, the mortgage loan was paid off.

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):

The following table summarizes income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the six months ended June 30, 2026 and 2025 (in thousands):

Income Accrued

(1) During the second quarter of 2026, the mortgage loan was paid off.

(2) 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 unchanged sentences

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

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

The following table summarizes our investments in notes receivable at June 30, 2026 ( dollar amounts in thousands ):

Working capital

1 unchanged sentence

(1) Excludes the impact of credit loss reserve.

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

The following table is a summary of our notes receivable components as of June 30, 2026 and December 31, 2025 (in thousands):

At June 30, 2026

At December 31, 2025

3 unchanged sentences

Total notes receivable, net of credit loss reserve

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,

The following table summarizes our notes receivable activity for the six months ended June 30, 2026 and 2025 (in thousands):

Six Months Ended June 30,

Principal payments received under notes receivable

12 unchanged sentences

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.

At June 30, 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:

2 unchanged sentences

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

At June 30, 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.

3 unchanged sentences

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

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 March 31, 2026

At June 30, 2026

Investment Type:

18 unchanged sentences

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.

(1) Relates to the recovery of a credit loss reserve on a financing receivable resulting from the lessee’s exercise of its purchase option for the underlying properties 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 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.

As of June 30, 2026, the total balance of accrued interest receivable of $ 24,621,000 was not included in the measurement of expected credit loss.

During the six months ended June 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.

Owned Real Properties .

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Prepaid Expenses and Other Assets

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

The following is a summary of our prepaid expenses and other assets at June 30, 2026 and December 31, 2025 ( in thousands ):

June 30, 2026

December 31, 2025

Investments, prepaid expenses and other assets

Intangible assets, net of accumulated amortization:

1 unchanged sentence

2025— $ 1,789

SHOP prepaid expenses and other assets

SHOP accounts receivable, net of credit loss reserve:

2026— $ 443 ;

SHOP prepaid expenses and other assets

Interest rate swap asset

Right of use asset, net

Lease incentives

Real estate investments, prepaid expenses and other assets

Interest rate swap asset

Intangible Assets

3 unchanged sentences

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

The following is a summary of the carrying amount of intangible assets as of June 30, 2026 and December 31, 2025 (in thousands) :

June 30, 2026

December 31, 2025

2 unchanged sentences

(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.

Increase relates to acquisition of five seniors housing communities during 2026 within our SHOP segment.

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

1 unchanged sentence

(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

The following table provides future amortization expenses related to the intangible assets at June 30, 2026 ( in thousands ):

July-December

In-place leases (1)

2 unchanged sentences

(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

3 unchanged sentences

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.

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”), provided for the opportunity to increase the total commitment to an aggregate $ 1,200,000,000 (the “Accordion”) and allowed for a one-year extension option, subject to customary conditions.

Material terms of the Credit Agreement remained unchanged.

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

1 unchanged sentence

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.

During the second quarter of 2026, we entered into an amendment to the Credit Agreement (the “Amended Credit Agreement”) to increase the aggregate commitment of its lenders by $ 300,000,000 to a total of $ 1,100,000,000 , through the exercise of the Credit Agreement’s accordion feature.

The $ 300,000,000 increase expands our aggregate revolving credit (the “Amended Revolving Line of Credit”) commitment to $ 900,000,000 .

Additionally, the Amended Credit Agreement increases the Accordion feature up to $ 2,000,000,000 (the “Amended Accordion”).

The material terms of the Amended Credit Agreement remain unchanged.

Based on our leverage at June 30, 2026, the facility provides for interest annually at SOFR plus 105 basis points and a facility fee of 15 basis points.

Interest Rate Swap Agreements.

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 .

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

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

Furthermore, during the second quarter of 2026, we entered into three-year interest rate swap agreements to effectively fix the interest rate on $ 150,000,000 of borrowings under our Amended Revolving Line of Credit.

Our 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 .

During the six months ended June 30, 2026 and 2025, we recorded an increase of $ 2,927,000 and a decrease of $ 1,627,000 to the fair value of our interest rate swaps, respectively.

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

March 31, 2026

June 30, 2026

December 31, 2025

16 unchanged sentences

SOFR with 5-day lookback

June 25, 2029

SOFR with 5-day lookback

June 25, 2029

SOFR with 5-day lookback

June 25, 2029

SOFR with 5-day lookback

June 25, 2029

SOFR with 5-day lookback

December 2025

8 unchanged sentences

The senior unsecured notes mature between 2026 and 2033.

The senior unsecured notes and the Credit Agreement contain financial covenants, which are measured quarterly, that require us to maintain, among other things:

The Credit Agreement and the senior unsecured notes contain financial covenants, which are measured quarterly, that require us to maintain, among other things:

● a ratio of total indebtedness to total asset value not greater than 0.6 to 1.0;

2 unchanged sentences

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

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

At June 30, 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.

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

The following table sets forth information regarding debt obligations by component as of June 30, 2026 and December 31, 2025 ( dollar amounts in thousands):

At June 30, 2026

At December 31, 2025

3 unchanged sentences

Senior unsecured notes, net of debt issue costs (3)

(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,

(1) Represents weighted average interest rate as of June 30, 2026.

(2) Subsequent to June 30, 2026, we borrowed $ 156,100 under our unsecured revolving line of credit.

Accordingly, we have $ 356,100 outstanding and $ 543,900 available for borrowing under our unsecured revolving line of credit as of August 5, 2026.

(3) Subsequent to June 30, 2026, we repaid $ 7,000 in scheduled principal paydown on our senior unsecured notes.

During the six months ended June 30, 2026 and 2025, our debt borrowings and repayments were as follows ( in thousands ):

Six Months Ended June 30,

Debt Obligations

1 unchanged sentence

Senior unsecured notes

(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.

(1) Subsequent to June 30, 2026, we borrowed $ 156,100 under our unsecured revolving line of credit.

Accordingly, we have $ 356,100 outstanding and $ 543,900 available for borrowing under our unsecured revolving line of credit as of August 5, 2026.

(2) Subsequent to June 30, 2026, we repaid $ 7,000 in scheduled principal paydown on our senior unsecured notes.

Accrued Expenses and Other Liabilities

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

The following is a summary of our accrued expenses and other liabilities at June 30, 2026 and December 31, 2025 ( in thousands ):

June 30, 2026

December 31, 2025

12 unchanged sentences

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):

As of June 30, 2026, we have the following consolidated VIEs (in thousands):

Non-Controlling

4 unchanged sentences

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

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

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

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

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

3 unchanged sentences

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, 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 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 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.

During the six months ended June 30, 2026, we sold 5,257,220 shares of common stock for $ 198,064,000 in net proceeds under our Equity Distribution Agreement.

Additionally, we incurred $ 200,000 of costs associated with this agreement, which have been recorded in additional paid in capital as a reduction of proceeds received.

At June 30, 2026, we had $ 88,572,000 available under the Equity Distribution Agreement.

During the six months ended June 30, 2025, we sold 387,600 shares of common stock for $ 13,785,000 in net proceeds under our Equity Distribution Agreement.

Additionally, we incurred $ 205,000 of costs associated with this agreement, which have been recorded in additional paid in capital as a reduction of proceeds received.

During the six months ended June 30, 2026 and 2025, we acquired 149,745 and 151,018 , respectively, shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.

Available Shelf Registration.

1 unchanged sentence

We may from time to time raise capital under our automatic shelf registration statement in amounts, at prices, and on terms to be announced when and if the securities are offered.

The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of the offering.

The specifics of any future offerings, along with the use of proceeds of any securities offered, will be

described in detail in a prospectus supplement, or other offering materials, at the time of the offering.

Our shelf registration statement expires in November 2027.

1 unchanged sentence

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

Three Months Ended March 31,

Six Months Ended June 30,

Common Stock (1)

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

(1) Represents $ 0.19 per share per month for the six months ended June 30, 2026 and 2025.

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

(3) Includes $ 1,312 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.

In July 2026, we declared a monthly cash dividend of $ 0.19 per share on our common stock for the months of July, A ugust and September 2026 , payable on July 31 , August 31 and September 30, 2026 , respectively, to stockholders of record on July 23 , August 21 , and September 22, 2026 , respectively.

Stock-Based Compensation .

5 unchanged sentences

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.

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

Three Months Ended March 31,

The following table summarizes our restricted stock activity for the six months ended June 30, 2026 and 2025 :

Six Months Ended June 30,

Weighted Average Price

Outstanding, January 1

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:

Outstanding, June 30

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

During the six months ended June 30, 2026, 170,827 units of performance-based stock units vested.

During the six months ended June 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.

During the six months ended June 30, 2026 and 2025, we granted restricted stock and performance-based stock units under the 2021 Plan as follows:

Vesting Period

6 unchanged sentences

Restricted stock

ratably over 3 years

3 unchanged sentences

TSR targets (2)

Restricted stock

April 30, 2028

Restricted stock

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

(2) Vesting is based on achieving certain TSR targets relative to the TSR of a predefined peer group in three years .

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

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.

(3) 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.

Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the six months ended June 30, 2026 and 2025 was $ 4,390,000 and $ 5,048,000 , 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):

April-December 2026

July-December 2026

Commitments and Contingencies

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

Triple-Net Portfolio

owned real properties ( Note 3.

Owned Real Property Investments )

At June 30, 2026, we had commitments as follows (in thousands):

Owned real properties-Triple-Net Portfolio (Note 3.

Owned Real Properties)

Financing receivables ( Note 4.

2 unchanged sentences

Mortgage loans ( Note 5.

Mortgage Loan Receivables )

Mortgage Loans Receivable )

Notes receivable ( Note 7.

1 unchanged sentence

(1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and skilled nursing properties.

(2) Includes an earn-out payment of up to $ 3,000 to an operator under a master lease on four SNFs in Texas which were acquired during 2022.

(2) Represents an earn-out payment up to $ 3,000 to an operator under a master lease on four SNFs in Texas.

The master lease allows either an earn-out payment up to $ 3,000 or a purchase option.

3 unchanged sentences

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.

(3) Includes $ 45,620 related to two construction loans, $ 19,250 of contingent commitments available upon the borrower achieving certain coverage ratios, and $ 3,895 of other commitments.

(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.

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

Additionally, we expect to invest capital related to our SHOP segment to improve and maintain our properties.

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

Owned Real Properties and Note 4.

Financing Receivables for additional 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.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Earnings per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

Less income allocated to non-controlling interests

11 unchanged sentences

We did not elect the fair value option for any of our financial assets and financial liabilities.

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

The carrying amount of cash and cash equivalents approximates their fair value because of the short-term maturity of these instruments.

We do not invest our cash in auction rate securities.

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

The carrying value and estimated fair value of our financial instruments as of June 30, 2026 and December 31, 2025 were as follows ( in thousands ):

At June 30, 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 was 7.5 % for both March 31, 2026 and December 31, 2025.

The discount rate used to value our future cash inflows of the financing receivables at both June 30, 2026 and December 31, 2025 was 7.5 % .

(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 was 8.8 % for both March 31, 2026 and December 31, 2025.

The discount rate used to value our future cash inflows of the mortgage loans receivable was 8.8 % for both June 30, 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 March 31, 2026 and December 31, 2025 was 7.8 % and 7.7 % , respectively.

The discount rate used to value our future cash flows of the notes receivable at June 30, 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 March 31, 2026 and December 31, 2025 based upon prevailing market interest rates for similar debt arrangements.

The estimated fair value of our revolving line of credit and term loans approximated their carrying values at June 30, 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 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 June 30, 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.

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 six months ended June 30, 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 months ended March 31, 2026 is as follows (unaudited, in thousands):

Three Months Ended March 31, 2026

The following tables summarize information by reportable segment for the three and six months ended June 30, 2026 and 2025 (unaudited, in thousands):

Three Months Ended June 30, 2026

investment portfolio

/corporate (1)

Rental income

8 unchanged sentences

Depreciation and amortization

Provision for credit losses

Transaction costs

General and administrative expenses

Gain on sale of real estate, net

Income tax provision

Six Months Ended June 30, 2026

investment portfolio

/corporate (1)

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

Recovery for credit losses

1 unchanged sentence

General and administrative expenses

Loss on sale of real estate, net

Gain on sale of real estate, net

Income tax provision

LTC PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

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

Three Months Ended June 30, 2025

investment portfolio

/corporate (1)

Rental income

8 unchanged sentences

Depreciation and amortization

Provision for credit losses

Transaction costs

General and administrative expenses

Gain on sale of real estate, net

Income tax benefit

Six Months Ended June 30, 2025

investment portfolio

/corporate (1)

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

Provision for credit losses

Transaction costs

General and administrative expenses

1 unchanged sentence

Income tax benefit

(1) The non-segment/corporate category includes income from temporary investments and other corporate-level income not attributable to a reportable segment.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONTINUED

Our Company qualifies as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended.

4 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 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.

Our provision for income taxes for the three and six months ended June 30, 2026, was an expense of $ 166,000 and $ 276,000 , respectively.

Our provision for income taxes for the three and six months ended June 30, 2025 reflected a benefit of $ 81,000 .

At June 30, 2026, our deferred income tax assets and deferred income tax liabilities with respect to our TRS entity were $ 217,000 and $ 0 , respectively.

At December 31, 2025, our deferred income tax assets and deferred income tax liabilities with respect to our TRS entity were $ 729,000 and $ 695,000 , respectively.

Subsequent Events

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.

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, 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, 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.

Subsequent to June 30, 2026, the following events occurred:

Real Estate Acquisitions.

The following table summarizes information regarding our acquisitions subsequent to June 30, 2026 ( dollar amounts in thousands ):

New Mexico & Colorado

(1) In conjunction with the acquisitions, we entered into three management agreements with three independent operators.

Property Sales.

We sold a 99 -bed skilled nursing center in Oregon for $ 34,200,000 .

The property which was classified as held-for-sale at June 30, 2026, had a gross book value and net book value of $ 5,177,000 and $ 654,000 , respectively.

We borrowed $ 156,100,000 under our unsecured revolving line of credit.

Accordingly, as of August 5, 2026, we have $ 356,100,000 outstanding and $ 543,900,000 available for borrowing under our unsecured revolving line of credit.

Additionally, we repaid $ 7,000,000 in scheduled principal paydowns on our senior unsecured notes.

We declared a monthly cash dividend of $ 0.19 per share on our common stock for the months of July, August and September 2026, payable on July 31 , August 31 and September 30, 2026 , respectively to stockholders of record on July 23 , August 21 , and September 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