LTC Reports 2025 Fourth Quarter Results and Introduces 2026 Guidance

-- SHOP Momentum Powers Portfolio Transformation with 60% revenue and 13% Core FFO growth –

LTC Properties, Inc. (NYSE:LTC) ("LTC" or the "Company"), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for the fourth quarter ended December 31, 2025.

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"Our strategic shift toward SHOP is delivering higher growth and fundamentally reshaping our long‑term earnings profile," said Pam Kessler, LTC's Co-CEO. "With a more resilient portfolio consisting of newer assets and a focused approach to capital allocation, we ended 2025 with momentum and confidence in our ability to continue creating long‑term value for shareholders."

Seniors Housing Operating Portfolio ("SHOP") Portfolio Composition:

• SHOP Acquisitions: $353 million in 2025; $108 million in January 2026 with an additional $157 million anticipated to close over the next 60-days.
• SHOP NOI Growth: 22% over 2024 proforma NOI for the Company's original 13 property SHOP conversions.
• SHOP as a % of Gross Investments: 24%.
• Average Age of SHOP Properties: 9 years.
• Skilled Nursing as a % of Gross Investments: 36%, down from 46% at year-end 2024.

"The transformation of our portfolio to a material composition of higher-growth SHOP investments will drive better risk adjusted returns of our shareholders," said Clint Malin, LTC's Co-CEO. "We are executing on our SHOP strategy with speed, determination and conviction, with a goal of SHOP representing 45% of our investment portfolio by the end of 2026 to further enhance our growth profile."

Supplemental Information

The company has disclosed more detailed financial information in the tables below, the Company's Supplemental Operating and Financial Data presentation for the 2025 fourth quarter, and its Form 10-K, as filed with the Securities and Exchange Commission, which can be found online at https://ir.ltcreit.com.

Fourth Quarter 2025 Transactions Update

• Acquired three seniors housing communities within the Company's SHOP segment for $84.2 million, with an expected unlevered IRR in the low teens.
• Converted two seniors housing communities in Oregon from the Company's triple-net portfolio into SHOP. Upon conversion, the triple-net master lease was terminated, and LTC wrote off a $957,000 working capital note from the prior operator in connection with the prior operator's cooperation with the conversion. Additionally, the Company entered into a management agreement with an operator new to LTC.
• Sold seven skilled nursing centers for $123 million and recorded a total gain on sales of $78 million.
• Received cash proceeds of $8.2 million, inclusive of a 12% exit IRR of $1.8 million, from the redemption of the Company's preferred equity investment in a joint venture.
• Received $16 million from the payoff of a mortgage loan secured by a seniors housing community.

Year to Date 2026 Transactions Update

• Acquired a seniors housing community within its SHOP segment for $108 million, with an expected unlevered IRR in the low teens.
• Converted two seniors housing communities in Texas from its triple-net portfolio into SHOP. Upon conversion, the triple-net master lease was terminated and LTC entered into a management agreement with an operator new to LTC.

Proforma Liquidity

• $542.0 million total proforma liquidity:
  • $15.9 million cash on hand.
  • $240.1 million available under the Company's unsecured revolving line of credit with $359.9 million outstanding.
  • $286.0 million available under the Company's ATM.

Guidance

LTC is introducing full year 2026 guidance, and is providing 2026 first quarter guidance, as follows:

The assumptions underlying the full year and first quarter guidance are as follows:

• Gross investments for the full year in the range of $400.0 million and $800.0 million, including transactions closed to date or expected to close over the next 60 days;
• Asset sales and loan payoffs of $265.9 million for the 2026 full year and $73.5 million for the 2026 first quarter;
• SHOP NOI, inclusive of expected net investments, in the range of $65.1 million to $77.2 million for the full year, and $12.1 million to $13.0 million for the 2026 first quarter. For further SHOP assumptions see the Company's Supplemental Operating and Financial Data presentation for the 2025 fourth quarter;
• SHOP FAD capital expenditures in the range of $4.6 million to $4.9 million for the full year, and $890,000 to $910,000 for the 2026 first quarter; and
• General and administrative costs for the full year in the range of $31.7 million to $33.9 million, and $8.4 million to $8.7 million for the 2026 first quarter.

Information and a reconciliation of the Company's guidance, funds from operations attributable to common stockholders, excluding non-recurring items, ("Core FFO") and funds available for distribution, excluding non-recurring items, ("Core FAD") can be found in the tables at the end of this press release.

Conference Call Information

LTC will conduct a conference call on Wednesday, February 25, 2026 at 8:00 a.m. Pacific / 11:00 a.m. Eastern, to provide commentary on its performance and operating results for the quarter ended December 31, 2025.

Conference Call Replay

A replay of the call will be available three hours after the live call through March 11, 2026.

About LTC

LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, principally investing through SHOP, as well as triple-net leases, and joint ventures. The Company's portfolio includes nearly 190 properties throughout the United States. Based on gross real estate investments, 63% of the Company's assets are seniors housing communities with the remainder skilled nursing centers. Learn more at www.LTCreit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. You can identify some of the forward-looking statements by their use of forward-looking words, such as "believes," "expects," "may," "will," "could," "would," "should," "seeks," "approximately," "intends," "plans," "estimates" or "anticipates," or the negative of those words or similar words. Examples of forward-looking statements include the Company's 2025 full-year and fourth quarter guidance and statements regarding the Company's investment pipeline, expected SHOP portfolio size, anticipated growth, acquisitions, NOI, capital expenditures, expenses, and future strategy. Forward-looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect the Company's future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to, the Company's dependence on its operators for revenue and cash flow; operational and legal risks and liabilities under the Company's new SHOP segment, government regulation of the health care industry; changes in federal, state, or local laws limiting REIT investments in the health care sector; federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid; required regulatory approvals for operation of health care facilities; a failure to comply with federal, state, or local regulations for the operation of health care facilities; the adequacy of insurance coverage maintained by the Company's operators; the Company's reliance on a few major operators; the Company's ability to renew leases or enter into favorable terms of renewals or new leases; the impact of inflation, operator financial or legal difficulties; the sufficiency of collateral securing mortgage loans; an impairment of the Company's real estate investments; the relative illiquidity of the Company's real estate investments; the Company's ability to develop and complete construction projects; the Company's ability to invest cash proceeds for health care properties; a failure to qualify as a REIT; the Company's ability to grow if access to capital is limited; and a failure to maintain or increase the Company's dividend. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion under "Risk Factors" contained in the Company's Annual Report on Form 10‑K for the fiscal year ended December 31, 2025, the Company's subsequent Quarterly Reports on Form 10‑Q, and the Company's publicly available filings with the Securities and Exchange Commission. The Company does not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise. Although the Company's management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.

See LTC's most recent Quarterly Report on Form 10‑Q for Supplemental Cash Flow Information

Supplemental Reporting Measures

FFO and FAD are supplemental measures of a real estate investment trust's ("REIT") financial performance that are not defined by U.S. generally accepted accounting principles ("GAAP"). Investors, analysts and the Company use FFO and FAD as supplemental measures of operating performance. The Company believes FFO and FAD are helpful in evaluating the operating performance of a REIT. Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. LTC believes that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO and FAD facilitate like comparisons of operating performance between periods. Occasionally, the Company may exclude non-recurring items from FFO and FAD in order to allow investors, analysts and management to compare the Company's operating performance on a consistent basis without having to account for differences caused by unanticipated items.

FFO, as defined by the National Association of Real Estate Investment Trusts ("Nareit"), means net income available to common stockholders (computed in accordance with GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company's computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current Nareit definition or have a different interpretation of the current Nareit definition from that of the Company; therefore, caution should be exercised when comparing the Company's FFO to that of other REITs.

The Company defines FAD as FFO excluding the effects of straight-line rent, amortization of lease inducement, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in the consolidated balance sheet. At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. Effective interest method, as required by GAAP, is a technique for calculating the actual interest rate for the term of a loan based on the initial origination value. Similar to the accounting methodology of straight-line rent, the actual interest rate is higher than the stated interest rate in the early years of a loan thus creating an effective interest receivable asset included in the interest receivable line item in the consolidated balance sheet and reduces down to zero when, at some point during the loan term, the stated interest rate is higher than the actual interest rate. FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.

While the Company uses FFO and FAD as supplemental performance measures of the cash flow generated by operations and cash available for distribution to stockholders, such measures are not representative of cash generated from operating activities in accordance with GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.

Reconciliation of FFO and FAD

The following table reconciles GAAP net income available to common stockholders to each of Nareit FFO attributable to common stockholders and FAD (unaudited, amounts in thousands):

Reconciliation of FFO and FAD (continued)

The following table continues the reconciliation between GAAP net income available to common stockholders and each of Nareit FFO attributable to common stockholders and FAD by reconciling the adjustments (unaudited, amounts in thousands):

Reconciliation of FFO and FAD (continued)

The following table continues the reconciliation between GAAP net income available to common stockholders and each of Nareit FFO attributable to common stockholders and FAD (unaudited, amounts in thousands, except per share amounts):

Reconciliation of FFO and FAD (continued)

Guidance

The Company is introducing guidance for the 2026 full year, and is providing 2026 first quarter guidance. The following guidance ranges reflect management's view of current and future market conditions. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth below. Except as otherwise required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing guidance ranges as a result of new information or new or future developments. The 2026 full year guidance is as follows (unaudited, amounts in thousands, except per share amounts):

The assumptions underlying the full year and first quarter guidance are as follows:

• Gross investments for the full year in the range of $400.0 million and $800.0 million, including transactions closed to date or expected to close over the next 60 days;
• Asset sales and loan payoffs of $265.9 million for the 2026 full year and $73.5 million for the 2026 first quarter;
• SHOP NOI, inclusive of expected net investments, in the range of $65.1 million to $77.2 million for the full year, and $12.1 million to $13.0 million for the 2026 first quarter. For further SHOP assumptions see the Company's Supplemental Operating and Financial Data presentation for the 2025 fourth quarter;
• SHOP FAD capital expenditures in the range of $4.6 million to $4.9 million for the full year, and $890,000 to $910,000 for the 2026 first quarter;
• General and administrative costs for the full year in the range of $31.7 million to $33.9 million, and $8.4 million to $8.7 million for the 2026 first quarter; and
• Adjustments to Core FFO and Core FAD include the following:
  • One-time exit IRR income of $1.5 million that LTC is expected receive in connection with the sale of three skilled nursing centers accounted for as a Financing receivable on the Company's Consolidated Balance Sheets;
  • Transaction costs in the range of $1.9 million to $2.4 million for the full year, and $400,000 to $500,000 for the 2026 first quarter;
  • Recovery of provision for credit losses related to loan payoffs outlined in the Company's Supplemental Operating and Financial Data presentation for the 2025 fourth quarter.

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For more information contact:

Mandi Hogan

(805) 981‑8655