8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20459

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report: August 8, 2013

(Date of earliest event reported)

LTC PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)

Maryland	1-11314	71-0720518
(State or other jurisdiction of	(Commission file number)	(I.R.S. Employer
incorporation or organization)		Identification No)

2829 Townsgate Road, Suite 350

Westlake Village, CA  91361

(Address of principal executive offices)

(805) 981-8655

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. – Results of Operations and Financial Condition

On August 8, 2013, LTC Properties, Inc. announced the operating results for the six months ended June 30, 2013.  The press release referred to a supplemental information package that is available on LTC’s website at www.LTCProperties.com in the “Presentation” section of the “Investor Information” tab.  The text of the press release and the supplemental information package are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are specifically incorporated by reference herein.

The information in this Form 8-K and the related information in the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of LTC under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. – Financial Statements and Exhibits

(a) Financial Statements of Business Acquired.

None.

(b) Pro Forma Financial Information

None.

(d) Exhibits.

99.1	Press Release issued August 8, 2013.
99.2	LTC Properties, Inc. Supplemental Information Package for the period ending June 30, 2013.

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	LTC PROPERTIES, INC.
Dated: August 8, 2013	By:	/s/ WENDY L. SIMPSON
		Wendy L. Simpson
		CEO & President

2

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE For more information contact: Wendy L. Simpson Pam Kessler (805) 981-8655

LTC REPORTS SECOND QUARTER 2013 RESULTS

WESTLAKE VILLAGE, CALIFORNIA, August 8, 2013 — LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”) announced operating results for the quarter ended June 30, 2013.  The Company reported a 9.0% increase in Funds from Operations (“FFO”) to $19.1 million in the quarter ended June 30, 2013, from $17.6 million in the comparable 2012 period.  FFO per diluted common share was $0.57 for the quarters ended June 30, 2013 and 2012. Normalized FFO was $19.2 million in the second quarter of 2013 compared to $17.3 million in the second quarter of 2012.  Normalized FFO per diluted common share was $0.57 for the second quarter of 2013 compared to $0.56 for the second quarter of 2012.  The increase in normalized FFO and normalized FFO per diluted common share was due to higher revenues resulting from acquisitions partially offset by an increase in interest expense and higher weighted average shares outstanding.

FFO for the six months ended June 30, 2013 increased 7.5% to $37.3 million from $34.7 million in the comparable 2012 period. FFO per diluted common share for the six months ended June 30, 2013 increased 2.7% to $1.16 from $1.13 in the comparable 2012 period. The Company reported a 10.6% increase to $38.3 million in normalized FFO for the six months ended June 30, 2013 from $34.6 million in the comparable 2012 period.  The six month 2013 normalized adjustment excludes a $0.7 million non-recurring charge related to the retirement of the Company’s former Senior Vice President, Marketing and Strategic Planning. Normalized FFO for the six months ended June 30, 2012 excludes a $0.3 million non-recurring bankruptcy settlement distribution from Sunwest Management, Inc. Normalized FFO per diluted common share was $1.18 for the six months ended June 30, 2013, an increase of 5.4% from $1.12 for the comparable 2012 period. The increase in FFO, normalized FFO, FFO per diluted common share and normalized FFO per diluted common share was due to higher revenues resulting from acquisitions partially offset by an increase in interest expense, general and administrative expenses and higher weighted average shares outstanding.

Net income available to common stockholders for the quarter ended June 30, 2013 was $12.0 million or $0.36 per diluted share. For the same period in 2012, net income available to common stockholders was $12.2 million or $0.40 per diluted share. Net income available to common stockholders for the six months ended June 30, 2013 was $24.1 million or $0.76 per diluted share. For the same period in 2012, net income available to common stockholders was $24.2 million or $0.80 per diluted share. The decrease in net income available to common stockholders was due primarily to the loss on sale of a 47-bed skilled nursing property, increases in expenses and the non-recurring charges related to the retirement of the Company’s former Senior Vice President, Marketing and Strategic Planning offset by higher revenues from acquisitions.

As previously announced on August 7, 2013, the Company entered into a $141.0 million mortgage loan agreement secured by 15 properties with a total of 2,092 skilled nursing beds and 24 independent living units in Michigan.  The loan is for a term of 30 years and will bear interest at an initial rate of 9.41% for five years, escalating annually thereafter by 2.25%.  Payments will be interest-only for a period of three years, after which the borrower will make interest along with annual principal payments of $1.0 million.

1

Conference Call Information

The Company will conduct a conference call on Friday, August 9, 2013, at 8:00 a.m. Pacific Time, in order to comment on the Company’s performance and operating results for the quarter ended June 30, 2013.  The conference call is accessible by dialing 888-317-6016.  The international number is 412-317-6016.  An audio replay of the conference call will be available from August 9 through August 26, 2013.  Callers can access the replay by dialing 877-344-7529 or 412-317-0088 and entering conference number 10031879.  The earnings release will be available on our website.  The Company’s supplemental information package for the current period will also be available on the Company’s website at www.LTCProperties.com in the “Presentations” section of the “Investor Information” tab.

About LTC

At June 30, 2013, LTC had investments in 90 skilled nursing properties, 104 assisted living properties, 9 range of care properties, two schools and five parcels of land under development.  These properties are located in 29 states.  Assisted living properties, independent living properties, memory care properties and combinations thereof are included in the assisted living property type. Range of care properties consist of properties providing skilled nursing and any combination of assisted living, independent living and/or memory care services.  The Company is a self-administered real estate investment trust that primarily invests in senior housing and long-term care facilities through facility lease transactions, mortgage loans and other investments. For more information on LTC Properties, Inc., visit the Company’s website at www.LTCProperties.com.

Forward Looking Statements

This press release includes statements that are not purely historical and are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future.  All statements other than historical facts contained in this press release are forward looking statements.  These forward looking statements involve a number of risks and uncertainties.  Please see our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and in our other publicly available filings with the Securities and Exchange Commission for a discussion of these and other risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such forward looking statements.  Although the Company’s management believes that the assumptions and expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.  The actual results achieved by the Company may differ materially from any forward looking statements due to the risks and uncertainties of such statements.

2

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share amounts, unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues:
Rental income	$	24,539		$	21,139		$	49,015		$	41,975
Interest income from mortgage loans	1,050			1,431			2,109			2,963
Interest and other income	92			485			185			722
Total revenues	25,681			23,055			51,309			45,660
Expenses:
Interest expense	2,798			2,004			5,931			4,037
Depreciation and amortization	6,124			5,355			12,250			10,509
General and administrative expenses	2,869			2,604			6,287			5,128
Total expenses	11,791			9,963			24,468			19,674
Income from continuing operations	13,890			13,092			26,841			25,986
Discontinued operations:
Net Income from discontinued operations	27			21			52			43
(Loss) gain on real estate assets, net	(1,014		)	—			(1,014		)	16
Net (loss) income from discontinued operations	(987		)	21			(962		)	59
Net income	12,903			13,113			25,879			26,045
Income allocated to non-controlling interests	—			(10		)	—			(21		)
Net income attributable to LTC Properties, Inc.	12,903			13,103			25,879			26,024
Income allocated to participating securities	(91		)	(91		)	(189		)	(185		)
Income allocated to preferred stockholders	(818		)	(818		)	(1,636		)	(1,636		)
Net income available to common stockholders	$	11,994		$	12,194		$	24,054		$	24,203
Basic earnings per common share:
Continuing operations	$	0.39		$	0.40		$	0.79		$	0.80
Discontinued operations	$	(0.03	)	$	0.00		$	(0.03	)	$	0.00
Net income available to common stockholders	$	0.36		$	0.40		$	0.76		$	0.80
Diluted earnings per common share:
Continuing operations	$	0.39		$	0.40		$	0.79		$	0.80
Discontinued operations	$	(0.03	)	$	0.00		$	(0.03	)	$	0.00
Net income available to common stockholders	$	0.36		$	0.40		$	0.76		$	0.80
Weighted average shares used to calculate earnings per common share:
Basic	32,913			30,213			31,645			30,201
Diluted	32,946			30,258			31,679			30,246

NOTE:  Computations of per share amounts from continuing operations, discontinued operations and net income are made independently.  Therefore, the sum of per share amounts from continuing operations and discontinued operations may not agree with the per share amounts from net income allocable to common stockholders.

3

Supplemental Reporting Measures

FFO, adjusted FFO (“AFFO”), and Funds Available for Distribution (“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, AFFO and FAD as supplemental measures of operating performance and we believe they 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 U.S. GAAP assumes that the value of real estate assets diminishes predictably over time.  We believe that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO, AFFO and FAD facilitate comparisons of operating performance between periods.  Additionally the Company believes that normalized FFO, normalized AFFO and normalized FAD provide useful information because they allow investors, analysts and our management to compare the Company’s operating performance on a consistent basis without having to account for differences caused by unanticipated items.

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), means net income available to common stockholders (computed in accordance with U.S. 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.  Normalized FFO represents FFO adjusted for certain items detailed in the reconciliations. 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 that have a different interpretation of the current NAREIT definition from the Company; therefore, caution should be exercised when comparing our company’s FFO to that of other REITs.

We define AFFO as FFO excluding the effects of straight-line rent and amortization of lease inducement.  U.S. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease.  This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in our consolidated balance sheet.  At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term.  By excluding the non-cash portion of straight-line rental revenue and amortization of lease inducement, investors, analysts and our management can compare AFFO between periods.  Normalized AFFO represents AFFO adjusted for certain items detailed in the reconciliations.

We define FAD as AFFO excluding the effects of non-cash compensation charges.  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.  Normalized FAD represents FAD adjusted for certain items detailed in the reconciliations.

The Company uses FFO, normalized FFO, normalized AFFO and normalized FAD as supplemental performance measures of our cash flow generated by operations and cash available for distribution to stockholders.  FFO, normalized FFO, normalized AFFO and normalized FAD do not represent cash generated from operating activities in accordance with U.S. 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.

4

Reconciliation of FFO, Normalized FFO, Normalized AFFO and Normalized FAD

The following table reconciles net income available to common stockholders to FFO available to common stockholders, normalized FFO available to common stockholders, normalized AFFO and normalized FAD (unaudited, amounts in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net income available to common stockholders	$	11,994		$	12,194		$	24,054		$	24,203
Add: Depreciation and amortization (continuing and discontinued operations)	6,131			5,369			12,267			10,536
Add (Less): Loss (gain) on sale of real estate, net	1,014			—			1,014			(16		)
FFO available to common stockholders	19,139			17,563			37,335			34,723
Add: Non-cash interest related to earn-out liabilities	110			110			220			220
Less: Non-recurring one time items	—			(347		)(2)	707		(1)	(347		)(2)
Normalized FFO available to common stockholders	19,249			17,326			38,262			34,596
Less: Non-cash rental income	(758		)	(521		)	(1,530		)	(1,003		)
Normalized adjusted FFO (AFFO)	18,491			16,805			36,732			33,593
Add: Non-cash compensation charges	523			458			1,051			910
Normalized funds available for distribution (FAD)	$	19,014		$	17,263		$	37,783		$	34,503

(1)Represents the one-time severance and accelerated restricted stock vesting charges related to the retirement of the Company’s former Senior Vice President, Marketing and Strategic Planning.

(2)Represents revenue from the Sunwest bankruptcy settlement distribution.

Basic FFO available to common stockholders per share	$	0.58	$	0.58	$	1.18	$	1.15
Diluted FFO available to common stockholders per share	$	0.57	$	0.57	$	1.16	$	1.13
Diluted FFO available to common stockholders	$	20,048	$	18,482	$	39,160	$	36,565
Weighted average shares used to calculate diluted FFO per share available to common stockholders	35,139		32,488		33,881		32,479
Basic normalized FFO available to common stockholders per share	$	0.58	$	0.57	$	1.21	$	1.15
Diluted normalized FFO available to common stockholders per share	$	0.57	$	0.56	$	1.18	$	1.12
Diluted normalized FFO available to common stockholders	$	20,158	$	18,245	$	40,087	$	36,438
Weighted average shares used to calculate diluted normalized FFO per share available to common stockholders	35,139		32,488		33,881		32,479
Basic normalized AFFO per share	$	0.56	$	0.56	$	1.16	$	1.11
Diluted normalized AFFO per share	$	0.55	$	0.55	$	1.14	$	1.09
Diluted normalized AFFO	$	19,400	$	17,724	$	38,557	$	35,435
Weighted average shares used to calculate diluted normalized AFFO per share	35,139		32,488		33,881		32,479
Basic normalized FAD per share	$	0.58	$	0.57	$	1.19	$	1.14
Diluted normalized FAD per share	$	0.57	$	0.56	$	1.17	$	1.12
Diluted normalized FAD	$	19,923	$	18,182	$	39,608	$	36,345
Weighted average shares used to calculate diluted normalized FAD per share	35,139		32,488		33,881		32,479

5

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

	June 30, 2013			December 31, 2012
	(unaudited)			(audited)
ASSETS
Real estate investments:
Land	$	75,094		$	75,094
Buildings and improvements	836,934			822,618
Accumulated depreciation and amortization	(209,581		)	(197,407		)
Net real estate property	702,447			700,305
Properties held-for-sale, net of accumulated depreciation and amortization: 2013 — $804; 2012 — $1,141	210			1,242
Net real estate property	702,657			701,547
Mortgage loans receivable, net of allowance for doubtful accounts: 2013 — $396; 2012 — $782	39,272			39,299
Real estate investments, net	741,929			740,846
Other assets:
Cash and cash equivalents	63,315			7,191
Debt issue costs, net	2,701			3,040
Interest receivable	741			789
Straight-line rent receivable, net of allowance for doubtful accounts: 2013 — $1,532; 2012 — $1,557	28,839			26,998
Prepaid expenses and other assets	6,262			7,548
Notes receivable	1,277			3,180
Total assets	$	845,064		$	789,592
LIABILITIES
Bank borrowings	$	—		$	115,500
Senior unsecured notes	185,800			185,800
Bonds payable	2,035			2,635
Accrued interest	3,296			3,279
Earn-out liabilities	6,963			6,744
Accrued expenses and other liabilities	11,712			12,492
Accrued expenses and other liabilities related to properties held-for-sale	33			34
Total liabilities	209,839			326,484
EQUITY
Stockholders’ equity:
Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2013 — 2,000; 2012 — 2,000	38,500			38,500
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2013 — 34,752; 2012 — 30,544	348			305
Capital in excess of par value	687,841			510,236
Cumulative net income	749,912			724,033
Accumulated other comprehensive income	134			152
Cumulative distributions	(841,510		)	(810,125		)
Total LTC Properties, Inc. stockholders’ equity	635,225			463,101
Non-controlling interests	—			7
Total equity	635,225			463,108
Total liabilities and equity	$	845,064		$	789,592

6

EX-99.2

Exhibit 99.2

Supplemental Operating and Financial Data June 30, 2013 (Unaudited) Amarillo, TX (120 beds) Operated by an entity within the Fundamental family of companies Grand Opening – June 20, 2013

Table of Contents 2 CORPORATE Company Information 3 Additional Information 4 Forward-Looking Statements & Non-GAAP Information 5 Acquisitions and Loan Originations 6 Development and Lease-Up Activity 7-12 Real Estate Portfolio Summary 13 Real Estate Portfolio Metrics 14 Real Estate Portfolio Diversification 15-18 Top Ten Operators - Owned Portfolio 19 Extendicare Inc. and Assisted Living Concepts, Inc. 20 Market Capitalization 21 Lease & Mortgage Loan Receivable Maturity 22 Debt Maturity 23 Financial Data Summary 24-25 Consolidated Statements of Income 26 Consolidated Balance Sheets 27 Funds from Operations 28-29 Glossary 30-32

3 Company Information CORPORATE Andre Dimitriadis Wendy Simpson Edmund King Executive Chairman Timothy Triche, MD Boyd Hendrickson Devra Shapiro Lead Director Andre Dimitriadis Wendy Simpson Executive Chairman Chief Executive Officer and President Pam Kessler Clint Malin Executive Vice President and Chief Financial Officer Executive Vice President and Chief Investment Officer Corporate Office Investor Relations www.LTCProperties.com 2829 Townsgate Road, Suite 350 Investor.Relations@LTCProperties.com (805) 981-8655 phone Westlake Village, CA 91361 (805) 981-8655 (805) 981-8663 fax Board of Directors Senior Management Contact Information Company Founded in 1992, LTC Properties, Inc. ("LTC") is a self-administered real estate investment trust that primarily invests in senior housing and long-term care properties through facility lease transactions, mortgage loans, and other investments. Our primary objectives are to sustain and enhance stockholder equity value and provide current income for distribution to stockholders through real estate investments in long-term care properties and other health care related properties operated by experienced operators. To meet these objectives, we attempt to invest in properties that provide opportunity for additional value and current returns to our stockholders and diversify our investment portfolio by geographic location, operator, and form of investment. For more information on LTC, visit the Company’s website at www.LTCProperties.com.

4 CORPORATE Additional Information BMO Capital Markets Corp. J.J. B. Hilliard, W.L. Lyons, Inc. JMP Securities, LLC Richard Anderson John Roberts Peter Martin KeyBanc Capital Markets, Inc. RBC Capital Markets Corporation Sidoti & Company, LLC Karin Ford Mike Carroll Peter Sicher Stifel, Nicolaus & Company, Inc. Wells Fargo Securities, LLC Dan Bernstein Todd Stender Analyst Coverage Any opinions, estimates, or forecasts regarding LTC's performance made by the analysts listed above do not represent the opinions, estimates, or forecasts of LTC or its management.

5 Forward-Looking Statements This supplemental information contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995. Statements that are not purely historical may be forward-looking. You can identify some of the forward-looking statements by their use of forward-looking words, such as ‘‘believes,’’ ‘‘expects,’’ ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘seeks,’’ ‘‘approximately,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘estimates’’ or ‘‘anticipates,’’ or the negative of those words or similar words. Forward- looking statements involve inherent risks and uncertainties regarding events, conditions and financial trends that may affect our future plans of operation, business strategy, results of operations and financial position. A number of important factors could cause actual results to differ materially from those included within or contemplated by such forward-looking statements, including, but not limited to, the status of the economy, the status of capital markets (including prevailing interest rates), and our access to capital; the income and returns available from investments in health care related real estate, the ability of our borrowers and lessees to meet their obligations to us, our reliance on a few major operators; competition faced by our borrowers and lessees within the health care industry, regulation of the health care industry by federal, state and local governments, (including as a result of the Patient Protection and Affordable Care Act of 2010 and the Health Care and Education Reconciliation Act of 2010), changes in Medicare and Medicaid reimbursement amounts (including due to federal and state budget constraints), compliance with and changes to regulations and payment policies within the health care industry, debt that we may incur and changes in financing terms, our ability to continue to qualify as a real estate investment trust, the relative illiquidity of our real estate investments, potential limitations on our remedies when mortgage loans default, and risks and liabilities in connection with properties owned through limited liability companies and partnerships. For a discussion of these and other factors that could cause actual results to differ from those contemplated in the forwardlooking statements, please see the discussion under ‘‘Risk Factors’’ and other information contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and in our publicly available filings with the Securities and Exchange Commission. We do not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Information This supplemental information contains certain non-GAAP information including EBITDA, normalized EBITDA, FFO, normalized FFO, normalized interest coverage ratio, and normalized fixed charges coverage ratio. A reconciliation of this non-GAAP information is provided on pages 25, 28, and 29 of this supplemental information, and additional information is available under the “Non-GAAP Financial Measures” subsection under the “Selected Financial Data” section of our website at www.LTCProperties.com. CORPORATE

6 Acquisitions and Loan Originations REAL ESTATE PORTFOLIO (dollar amounts in thousands) (1) GAAP yield assumes a total purchase price of $45,000 which includes $41,000 of cash paid at closing and $4,000 earn-out paid in 2011. (2) The GAAP yield represents the yield on the master lease and includes a parcel of land for $844 and $8,250 of construction funding. The skilled nursing property opened in June 2013. See page 7 for Lease-Up Activity. (3) In July 2013, we received the certificate of occupancy a newly constructed 60-unit memory care property in Colorado. The new memory care property opened in July 2013. See page 7 for Lease-Up Activity. (4) See page 7 for Development Activity. ACQUISITIONS LOAN ORIGINATIONS Date # of Properties Property Type # Units/Beds Location Borrower Operator 11/15/12 1 SNF/UDP (1) 106 beds WI Hartford Healthcare Fundamental 3,533 $ 339 $ 9.3% 12/20/12 1 ALF 70 units PA Cordia Commons at Meadville Juniper 5,100 362 7.0% Total 2012 2 106 beds / 70 units $ 8,633 $ 701 Funded to Date Interest Rate Annual Revenue (1) Represents a mortgage and construction loan secured by a currently operating skilled nursing property and parcel of land upon which a 106-bed replacement facility is being constructed. The initial funding in 2012 was $2,619. DATE # OF PROPERTIES # BEDS/UNITS LOCATION OPERATOR DATE OF CONSTRUCTION PURCHASE PRICE ANNUAL GAAP REVENUE GAAP LEASE YIELD 2/28/11 2 ROC 118 beds/93 units SC Prestige Healthcare 1965-2001 11,450 $ 1,158 $ 10.1% 3/9/11 4 SNF 524 beds TX Meridian Senior Properties 2007-2008 45,000 (1) 4,722 10.5% (1) 8/1/11 1 SNF 140 beds TX Senior Care Centers 2008 10,000 1,058 10.5% 10/11/11 1 SNF 196 beds TX Fundamental 2005 15,500 1,881 (2) 11.0% (2) 10/11/11 1 SNF 120 beds TX Fundamental 2012-2013 844 - (2) - (2) 11/1/11 1 SNF 156 beds CA Traditions Management 1990 17,500 1,814 10.3% Total 2011 10 1,254 beds/93 units 100,294 3/23/12 1 SNF 144 beds TX Senior Care Centers 2002 18,600 1,988 $ 10.7% 5/14/12 1 UDP (3) 60 units CO Under Development Property 2012-2013 (3) 1,882 - - (3) 7/2/12 1 SNF 90 beds TX Senior Care Centers 2011 6,500 701 10.7% 7/31/12 2 SNF 288 beds OH Carespring Health Care Mgt 2009-2010 54,000 5,426 10.1% 10/23/12 1 UDP (4) 77 units KS Under Development Property 2012-2013 (4) 730 - - (4) 12/20/12 5 ALF/MC 266 units CO/NJ Juniper Communities, LLC 1999-2002 81,988 6,665 8.1% 12/27/12 1 UDP (4) 81 units TX Under Development Property 2013 (4) 1,000 - - (4) 12/28/12 1 UDP (4) 143 beds KY Under Development Property 2013 (4) 2,050 - - (4) Total 2012 13 665 beds/484 units 166,750 Total 23 1,919 beds/577 units $ 267,044 PROPERTY TYPE

7 Development and Lease-Up Activity REAL ESTATE PORTFOLIO (dollar amounts in thousands) (1) Includes land and excludes capitalized interest on our open commitment. (2) Interest on the loan is paid monthly in arrears. (3) Based on Treasury rate and/or Treasury rate plus spread but not less than the rate shown. DEVELOPMENT LEASE-UP (1) Represents a newly developed 120-bed skilled nursing property in Texas which was opened in 2Q13 and replaces a skilled nursing property in our existing portfolio. Rent is expected to begin in 3Q13. (2) Represents a newly developed 60-unit memory care property in Colorado which was opened in 3Q13. Rent is expected to begin in 3Q13. Project Type Property # of Projects Property Type # Units/Beds Open 2011 Amarillo, TX 1 SNF 9.00% 120 beds 9,094 $ 1,829 $ 6,975 $ 2,119 $ Open 2012 Development (2) Littleton, CO 1 MC 9.25% 60 units 9,817 1,973 9,492 325 2 60 units/120 beds 18,911 $ 3,802 $ 16,467 $ 2,444 $ Status Commitment Year Approximate Cash Lease Yield Total Commitment Re-development (1) Remaining Commitment 2Q13 Funding Total Funded to Date Project Type Property # of Projects Property Type # Units/Beds 4Q13 2012 Development Wichita, KS 1 ALF/MC 9.25% 77 units 10,585 1,743 4,826 5,759 4Q13 2012 Renovation Roswell, NM 1 SNF 9.00% - 1,540 - 1,108 432 4Q13 2012 Renovation Alamagordo, NM 1 SNF 9.00% - 710 - 319 391 4Q13 (2) 2012 Construction Loan Slinger, WI 1 SNF 9.00% (3) 106 beds 10,600 3 3,533 7,067 4Q13 2012 Expansion Arvada, CO 1 ALF/MC 7.75% (3) - 6,600 1 2 6,598 5 77 units/106 beds 30,035 $ 1,747 $ 9,788 $ 20,247 $ 2Q14 2013 Renovation Hillview, TN 1 SNF 7.00% - 1,000 $ 85 $ 85 $ 915 $ 2Q14 2013 Renovation Lauderdale, TN 1 SNF 7.00% - 1,100 94 94 1,006 3Q14 2012 Development Frisco, TX 1 ALF/MC 9.25% 81 units 5,800 450 1,898 3,902 3Q14 2012 Renovation Sacramento, CA 1 SNF 9.00% - 1,700 - - 1,700 4Q14 2012 Expansion Ft. Collins, CO 1 ALF/MC 7.75% (3) - 4,700 - - 4,700 4Q14 2012 Renovation Ft. Collins, CO 1 ALF/MC 7.75% (3) - 3,300 - - 3,300 6 81 units 17,600 $ 629 $ 2,077 $ 15,523 $ 1Q15 2012 Development Coldspring, KY 1 SNF 8.50% 143 beds 23,500 $ 1,199 $ 6,044 $ 17,456 $ Total 12 158 units/249 beds 71,135 $ 3,575 $ 17,909 $ 53,226 $ 2Q13 Funding (1) Total Funded to Date (1) Remaining Commitment (1) Estimated Rent Inception Date Commitment Year Approximate Cash Lease Yield Investment Commitment (1)

8 REAL ESTATE PORTFOLIO Development Activity Development in Wichita, KS 77-unit assisted living and memory care property To be operated by Oxford Development Holdings, LLC Rendering

9 REAL ESTATE PORTFOLIO Development Activity Expansion Project in Arvada, CO Operated by Brookdale Senior Living, Inc. Rendering

10 REAL ESTATE PORTFOLIO Development Activity Mortgage and Construction Loan in Slinger, Wisconsin 106-bed skilled nursing property To be operated by an entity within the Fundamental family of companies

11 REAL ESTATE PORTFOLIO Lease-Up Activity Lease-Up in Amarillo, TX 120-bed skilled nursing property Grand Opening – June 20, 2013 Operated by an entity within the Fundamental family of companies

12 REAL ESTATE PORTFOLIO Rendering Lease-Up in Littleton, CO 60-unit memory care property Grand Opening – July 15, 2013 Operated by Anthem Memory Care Lease-Up Activity

13 Real Estate Portfolio Summary REAL ESTATE PORTFOLIO (dollar amounts in thousands) Real Estate Portfolio Snapshot Memory Care Property - Aurora, CO (48 units) Operated by Juniper Communities, LLC Assisted Living Property- Chatham, NJ (92 units) Operated by Juniper Communities, LLC (1) Includes rental income from continuing and discontinued operations Type of Property Gross Investments % of Investments Rental Income(1) Interest Income % of Revenues(1) # of Properties SNF Beds ALF Units Skilled Nursing $ 478,751 50.2% $ 50,057 $ 2,754 53.2% 90 10,279 - $46.58 Assisted Living 392,115 41.2% 37,682 1,560 39.5% 104 - 4,713 $83.20 Range of Care 46,643 4.9% 5,307 328 5.7% 9 733 348 $43.15 Under Development 22,757 2.4% - - - - - - Schools 12,444 1.3% 1,564 - 1.6% 2 - - Total $ 952,710 100.0% $ 94,610 $4,642 100.0% 205 11,012 5,061 Trailing Twelve Months Ended June 30, 2013 Investment per Bed/Unit

14 Same Property Portfolio Statistics (1) Real Estate Portfolio Metrics REAL ESTATE PORTFOLIO Stabilized Property Portfolio Quality Mix Owned Properties 1Q13 4Q12 1Q13 4Q12 1Q13 4Q12 Assisted Living (2) 78.2% 78.2% 1.22 1.24 1.44 1.47 Assisted Living (3) 87.0% 87.0% 1.39 1.37 1.64 1.62 Skilled Nursing 79.0% 77.6% 1.85 1.84 2.55 2.46 Range of Care 86.0% 86.7% 1.38 1.37 1.83 1.80 (1) (2) (3) Includes properties leased to Assisted Living Concepts, Inc. Excludes properties leased to Assisted Living Concepts, Inc. Occupancy EBITDAR Coverage EBITDARM Coverage Information is for the trailing twelve months through March 31, 2013 and December 31, 2012 and is from property level operator financial statements which are unaudited and have not been independently verified by us. For the Three Months Ended March 31, 2013 Private Pay 59.1% Medicare 15.4% Medicaid 25.5% (1) Quality mix for our skilled nursing portfolio, for the quarter presented, is 25.1% Private Pay, 28.2% Medicare, and 46.8% Medicaid. Owned Properties Payor Source (1)

 LTC owns or holds mortgages on 205 properties and five parcels of land under development in 29 states Approximately 78% of the Company’s total gross investment is located in 10 states LTC’s largest concentration is in Texas which has approximately 25% of the Company’s total gross investment 15 Skilled Nursing Properties (Total: 90) Assisted Living Properties (Total: 104) 7 NV WY MI IL AR LA KY WV ME ND NY 34 2 1 2 3 5 1 8 3 2 2 2 2 2 6 20 3 5 4 10 11 4 4 2 6 1 4 2 8 7 4 3 3 8 1 1 Schools (Total: 2) Range of Care Properties (Total: 9) 1 1 1 2 2 1 1 1 1 WA OR CA AZ NM TX UT ID MT SD NE KS OK MS MN WI FL AL GA SC TN MO IA IN OH PA NJ NC VA CO Under Development Properties (Total: 5) 1 1 1 1 1 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO 1

16 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO Property and Asset Type Diversification - Owned and Loan Portfolio (1) Includes rental income from continuing and discontinued operations and interest income from mortgage loans Gross Gross Property Type Investment % % Asset Type Investment % Skilled Nursing 90 $ 478,751 50.2% $ 52,811 53.2% Real Property 913,042 $ 95.8% Assisted Living 104 392,115 41.2% 39,242 39.5% Loans Receivable 39,668 4.2% Range of Care 9 46,643 4.9% 5,635 5.7% Total 952,710 $ 100.0% Under Development - 22,757 2.4% - - Schools 2 12,444 1.3% 1,564 1.6% Total 205 $ 952,710 100.0% $ 99,252 100.0% Properties Revenue (1) Trailing Twelve Months Ended June 30, 2013 # of

17 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO State Diversification By Property Type - Owned and Loan Portfolio (1) Population is based on 2010 Census. (2) Due to master leases with properties in multiple states, revenue by state is not available. (dollar amounts in thousands) State (2) # of Props SNF % ALF % ROC % UDP % School % Gross Investment % Texas 55 193,393 $ 40.4% 37,782 $ 9.6% 2,994 $ 6.4% 1,930 $ 8.5% - $ - 236,099 $ 24.8% Ohio 19 66,157 13.8% 44,647 11.4% - - - - - - 110,804 11.6% New Jersey 5 - - 61,397 15.7% - - - - 9,270 74.5% 70,667 7.4% Florida 17 26,684 5.6% 41,059 10.5% - - - - - - 67,743 7.1% Colorado 11 6,038 1.3% 41,919 10.7% 2,007 4.3% 9,761 42.9% - - 59,725 6.3% California 5 20,649 4.3% 28,071 7.2% 2,736 5.9% - - - - 51,456 5.4% New Mexico 7 50,303 10.5% - - - - - - - - 50,303 5.3% Arizona 7 36,092 7.5% 5,120 1.3% - - - - - - 41,212 4.3% Virginia 4 15,713 3.3% - - 13,339 28.6% - - - - 29,052 3.0% Washington 10 8,669 1.8% 19,080 4.9% - - - - - - 27,749 2.9% All Others 65 55,053 11.5% 113,040 28.7% 25,567 54.8% 11,066 48.6% 3,174 25.5% 207,900 21.9% Total 205 478,751 $ 100.0% 392,115 $ 100.0% 46,643 $ 100.0% 22,757 $ 100.0% 12,444 $ 100.0% 952,710 $ 100.0%

18 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO Operator Diversification - Owned Portfolio Operator % % Extendicare Inc. and Assisted Living Concepts, Inc 37 88,034 $ 9.6% 10,963 $ 11.1% Brookdale Senior Living Communities, Inc. 35 84,212 9.2% 10,948 11.1% Juniper Communities, LLC 5 81,988 9.0% 6,663 6.7% Preferred Care 25 77,206 8.5% 10,588 10.7% Senior Care Centers, LLC 5 63,698 7.0% 6,748 6.8% Carespring Health Care Mgt, LLC 2 60,157 6.6% 5,431 5.5% Meridian Senior Properties Fund II, LP 4 50,841 5.6% 4,742 4.8% Traditions Senior Management, Inc. 4 48,500 5.3% 5,243 5.3% Skilled Healthcare Group Subsidiaries 5 40,270 4.4% 4,501 4.5% Sunrise Senior Living 6 37,659 4.1% 4,614 4.7% All Others 51 280,477 30.7% 28,494 28.8% Total 179 913,042 $ 100.0% 98,935 $ 100.0% # of Properties Gross Investment Annualized GAAP Rent

19 Top Ten Operators – Owned Portfolio REAL ESTATE PORTFOLIO Extendicare Inc. and Assisted Living Concepts, Inc. operate 37 of our assisted living properties in 10 states with a gross investment balance of $88.0 million as of June 30, 2013. Extendicare Inc. (TSX: EXE) operates 247 senior care centers in North America with the ability to serve approximately 27,100 residents. EXE offers a continuum of health care services, including nursing care, assisted living and related medical specialty services, such as sub-acute care and rehabilitative therapy on an inpatient and outpatient basis. Assisted Living Concepts, Inc. (Privately held) and its subsidiaries operate 211 residences which include licensed assisted living and independent living residences with capacity for 9,348 residents in 20 states. Brookdale Senior Living, Inc. (NYSE: BKD) operates 649 independent living, assisted living, and memory care communities and continuing care retirement centers, with the ability to serve approximately 67,000 residents. As of June 30, 2013, the LTC portfolio consisted of 35 assisted living properties in eight states with a gross investment balance of $84.2 million. Preferred Care, Inc. (Privately held) operates 102 facilities comprised of skilled nursing, assisted living, and independent living facilities, as well as five specialty care facilities, in 12 states. As of June 30, 2013, the LTC portfolio consisted of 23 skilled nursing and two range of care properties in six states with a gross investment balance of $77.2 million. They also operate one skilled nursing facility under a sub-lease with another lessee in our portfolio which is not included in the Preferred Care rental revenue. Skilled Healthcare Group (NYSE: SKH) is a holding company with subsidiaries that operate skilled nursing facilities, assisted living facilities, a rehabilitation therapy business, and a hospice business. Skilled Healthcare operates 74 skilled nursing and 22 assisted living facilities in 8 states. As of June 30, 2013, the LTC portfolio consisted of 5 skilled nursing properties in New Mexico with a gross investment balance of $40.3 million. Meridian Senior Properties Fund II, LP and other affiliated entities (Privately held) acquire, develop and operate independent living, assisted living, memory care and skilled nursing facilities and currently owns or leases 9 skilled nursing facilities, one assisted living facility, and one memory care facility. As of June 30, 2013, the LTC portfolio consisted of four skilled nursing properties in Texas with a gross investment balance of $50.8 million. Senior Care Centers, LLC (Privately held) provides skilled nursing care, memory care, assisted living, and independent living services in 35 facilities exclusively in Texas. As of June 30, 2013, the LTC portfolio consisted of five skilled nursing properties in Texas with a gross investment balance of $63.7 million. They also operate four skilled nursing properties under a sub-lease with Meridian Senior Properties Fund II, LP which is not included in the Senior Care Centers, LLC rental revenue. Carespring Health Care Mgmt, LLC (Privately held) provides skilled nursing, assisted living, and independent living services, and other rehabilitative and healthcare services at 10 facilities in two states. As of June 30, 2013, the LTC portfolio consisted of a parcel of land in Kentucky and two skilled nursing properties in Ohio with a gross investment balance of $60.2 million. Juniper Communities, LLC (Privately held) operates 18 facilities comprised of skilled nursing, assisted living, memory care, and independent living facilities in four states. As of June 30, 2013, the LTC portfolio consisted of five assisted living and memory care properties in two states with a gross investment balance of $82.0 million. Sunrise Senior Living, LLC (Privately Held), through its subsidiaries, operates 292 communities in the United States, Canada and the United Kingdom. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, memory care, as well as nursing and rehabilitative services. As of June 30, 2013, the LTC portfolio consisted of six assisted living and memory care properties in two states with a gross investment balance of $37.7 million. Traditions Senior Management, Inc. and other affiliated entities (Privately held) operate 22 facilities consisting of independent living, assisted living, and skilled nursing facilities in eight states. As of June 30, 2013, the LTC portfolio consisted of three skilled nursing properties and one range of care property operated by Traditions and another affiliate in three states with a gross investment balance of $48.5 million. Traditions also operates two skilled nursing properties under a sub-lease with Preferred Care, Inc. which is not included in the Traditions rental revenue.

20 Extendicare Inc. (TSX: EXE) and Assisted Living Concepts, Inc. (Privately Held) REAL ESTATE PORTFOLIO Photos of our properties leased to ALC/Extendicare are available on the Company’s website at www.LTCProperties.com in the “ALC/EXE Properties” subsection under the “Property Photos” section of the “Properties” tab. (1) Twelve Months Ended March 31, 2013 States States Idaho 4 148 Arizona 2 76 Iowa 1 35 Indiana 2 78 New Jersey 1 39 Nebraska 4 158 Ohio 5 191 Oregon 3 119 Texas 7 278 Washington 8 308 Total 18 691 Total 19 739 Master Lease II # of Properties # of Units Master Lease I # of Properties # of Units Co-lessee Extendicare Inc. and Assisted Living Concepts, Inc. Total # of Properties 37 properties Total # of Units 1,430 units Lease Expiration December 31, 2014 Renewal Options Three (3) periods of ten (10) years each EBITDAR Coverage (1) 0.9x % of Portfolio Rent 11.1% of Annualized GAAP Rent

21 Market Capitalization (1) Includes amortization of debt issue cost. (2) Includes letter of credit fees. (3) Non-traded shares. Two million shares outstanding with a face rate of 8.5% and a liquidation value of $19.25 per share, convertible into common stock on a one-for-one basis. Our Series C preferred stock is not redeemable by us. (4) Traded on NYSE. (5) Closing price of our common stock as reported by the NYSE on June 28, 2013, the last trading day of second quarter 2013. FINANCIAL (In thousands, except per share amounts and number of shares) Capitalization Bank borrowings - LIBOR + 1.25% - $ Senior unsecured notes -weighted average rate 5.17% (1) 185,800 Bonds payable - weighted average rate 2.91% (2) 2,035 Total debt 187,835 12% No. of shares Preferred stock -Series C (3) 38,500 2% Common stock (4) 34,751,910 39.05 $ (5) 1,357,062 86% Non-controlling interest - - Total equity 1,395,562 88% 1,583,397 $ 100% Debt to Total Market Value Debt & Preferred to Total Market Value At June 30, 2013 Debt 11.9% 14.3% Equity Closing Price Total Market Value

22 Lease and Mortgage Loan Receivable Maturity FINANCIAL Investment Portfolio Maturity Schedule (as a % of total gross owned investment and mortgage loans outstanding) (dollar amounts in thousands) (1) Reflects annualized contract rate of interest for loans, net of collectability reserves, if applicable. Rental Revenue and Interest Income Maturity Year % of Total % of Total % of Total 2013 453 $ 0.5% - $ - 453 $ 0.4% 2014 12,951 13.1% 1,217 35.8% 14,168 13.8% 2015 1,132 1.1% 298 8.8% 1,430 1.4% 2016 2,129 2.2% 26 0.8% 2,155 2.1% 2017 1,638 1.7% 600 17.7% 2,238 2.2% 2018 10,620 10.7% 803 23.7% 11,423 11.2% 2019 1,596 1.6% 123 3.6% 1,719 1.7% 68,416 69.1% 328 9.6% 68,744 67.2% Total 98,935 $ 100.0% 3,395 $ 100.0% 102,330 $ 100.0% Annualized GAAP Rental Income Interest Income (1) Total Rental & Interest Income Thereafter

23 Debt Maturity (in thousands) FINANCIAL (in thousands) (1) Reflects scheduled principal payments. $ - $ 4,167 $ 635 $ 4,802 - 29,166 1,400 30,566 - 16,667 - 16,667 - 14,167 - 14,167 - 14,167 - 14,167 - 11,666 - 11,666 - 95,800 - 95,800 $ - $ 185,800 $ 2,035 $ 187,835 Total Year Unsecured Line of Credit Senior Unsecured Notes (1) Bonds Payable (1) Total Thereafter 2017 2016 2015 2014 2018 2019

24 Financial Data Summary FINANCIAL (dollar amounts in thousands) (1) Gross asset value represents undepreciated book value. Balance Sheet and Coverage Ratios 12/31/10 12/31/11 12/31/12 6/30/13 Net real estate assets $515,983 $599,916 $740,846 $741,929 Total assets 561,264 647,097 789,592 845,064 Total debt 91,430 159,200 303,935 187,835 Total liabilities 103,742 178,387 326,484 209,839 Preferred stock 126,913 38,500 38,500 38,500 Total equity 457,522 468,710 463,108 635,225 Debt to gross asset value ratio (1) 12.7% 19.3% 30.8% 17.8% Debt & preferred stock to gross asset value ratio (1) 30.3% 24.0% 34.7% 21.4% Debt to total market value ratio 9.5% 14.0% 21.4% 11.9% Debt & preferred stock to total market value ratio 23.0% 17.4% 24.2% 14.3% Debt to normalized EBITDA 1.4x 2.1x 3.7x 2.1x Normalized interest coverage ratio 24.5x 11.7x 8.4x 7.5x Normalized fixed charge coverage ratio 4.0x 6.3x 6.3x 5.9x Trailing twelve months ended

25 Financial Data Summary FINANCIAL FINANCIAL (dollar amounts in thousands) Non-Cash Rental Revenue Components (1) Projections based on current in-place leases assuming no modification or replacement of existing leases and no new leased investments are added to our portfolio. Reconciliation of Normalized EBITDA and Fixed Charges 2Q13 3Q13(1) 4Q13(1) 1Q14(1) 2Q14(1) 923 $ 877 $ 820 $ 586 $ 521 $ (165) (165) (165) (165) (165) 758 $ 712 $ 655 $ 421 $ 356 $ Straight-line rent Amort of lease inducement Net Net income 46,053 $ 49,443 $ 51,327 $ 51,161 $ (Less) add: (Gain) loss on sale of real estate, net (310) - (16) 1,014 Add: Interest expense 2,653 6,434 9,932 11,826 Add: Depreciation and amortization (continuing and discontinued operations) 16,109 19,623 22,153 23,884 Adjusted EBITDA 64,505 75,500 83,396 87,885 Add back/(deduct): Non-recurring one-time items 467 - (347) 707 Normalized EBITDA 64,972 $ 75,500 $ 83,049 $ 88,592 $ Interest expense 2,653 $ 6,434 $ 9,932 $ 11,826 $ Preferred stock dividend 13,662 5,512 3,273 3,273 Fixed Charges 16,315 $ 11,946 $ 13,205 $ 15,099 $ 12/31/10 12/31/11 6/30/13 Trailing twelve months ended 12/31/12

Consolidated Statements of Income 26 FINANCIAL FINANCIAL (dollar amounts in thousands, except per share amounts, audited) 2013 2012 2013 2012 Revenues Rental income 24,539 $ 21,139 $ 49,015 $ 41,975 $ Interest from mortgage loans 1,050 1,431 2,109 2,963 Interest and other income 92 485 185 722 Total revenues 25,681 23,055 51,309 45,660 Expenses Interest expense 2,798 2,004 5,931 4,037 Depreciation and amortization 6,124 5,355 12,250 10,509 General and administrative expenses 2,869 2,604 6,287 5,128 Total expenses 11,791 9,963 24,468 19,674 Income from continuing operations 13,890 13,092 26,841 25,986 Discontinued operations: Net Income from discontinued operations 27 21 52 43 (Loss) gain on sale of assets, net (1,014) - (1,014) 16 Net (loss) income from discontinued operations (987) 21 (962) 59 Net income 12,903 13,113 25,879 26,045 Income allocated to non-controlling interests - (10) - (21) Net income attributable to LTC Properties, Inc. 12,903 13,103 25,879 26,024 Income allocated to participating securities (91) (91) (189) (185) Income allocated to preferred stockholders (818) (818) (1,636) (1,636) Net income available to common stockholders 11,994 $ 12,194 $ 24,054 $ 24,203 $ Basic earnings per common share: $0.36 $0.40 $0.76 $0.80 Diluted earnings per common share: $0.36 $0.40 $0.76 $0.80 Weighted average shares used to calculate earnings per common share Basic 32,913 30,213 31,645 30,201 Diluted 32,946 30,258 31,679 30,246 June 30, Six Months Ended Three Months Ended June 30,

Consolidated Balance Sheets 27 FINANCIAL FINANCIAL (amounts in thousands, audited) December 31, 2012 December 31, 2012 ASSETS LIABILITIES Real estate investments: Bank borrowings - $ 115,500 $ Land 75,094 $ 75,094 $ Senior unsecured notes 185,800 185,800 Buildings and improvements 836,934 822,618 Bonds payable 2,035 2,635 Accumulated depreciation and amortization (209,581) (197,407) Accrued interest 3,296 3,279 Net operating real estate property 702,447 700,305 Earn-out liabilities 6,963 6,744 Accrued expenses and other liabilities 11,712 12,492 Properties held-for-sale, net of accumulated depreciation Accrued expenses and other liabilities and amortization: 2013 - $804; 2012 - $1,141 210 1,242 related to properties held-for-sale 33 34 Net real estate property 702,657 701,547 Total liabilities 209,839 326,484 Mortgage loans receivable, net of allowance for doubtful accounts: 2013 - $396; 2012 - $782 39,272 39,299 EQUITY Real estate investments, net 741,929 740,846 Preferred stock (1) 38,500 38,500 Common stock (2) 348 305 Capital in excess of par value 687,841 510,236 Other assets: Cumulative net income 749,912 724,033 Cash and cash equivalents 63,315 7,191 Other 134 152 Debt issue costs, net 2,701 3,040 Cumulative distributions (841,510) (810,125) Interest receivable 741 789 Total LTC stockholders' equity 635,225 463,101 Straight-line rent receivable, net of allowance for doubtful accounts: 2013 - $1,532; 2012 - $1,557 28,839 26,998 Non-controlling interests - 7 Prepaid expenses and other assets 6,262 7,548 Notes receivable 1,277 3,180 Total equity 635,225 463,108 Total assets 845,064 $ 789,592 $ Total liabilities and equity 845,064 $ 789,592 $ (1) Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2013 - 2,000; 2012 - 2,000 (2) Common stock $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2013 - 34,752; 2012 - 30,544 June 30, 2013 June 30, 2013

Funds from Operations 28 FINANCIAL FINANCIAL (dollar amounts in thousands, except per share amounts) Normalized FFO, AFFO, and FAD Reconciliation 2013 2012 2013 2012 Net income available to common stockholders 11,994 $ 12,194 $ 24,054 $ 24,203 $ Add: Depreciation and amortization (continuing and discontinued operations) 6,131 5,369 12,267 10,536 Add (less): Loss (gain) on sale of real estate, net 1,014 - 1,014 (16) FFO available to common stockholders 19,139 17,563 37,335 34,723 Add: Non-cash interest related to earn-out liabilities 110 110 220 220 Add: Non-recurring one time items - (347) (2) 707 (1) (347) (2) Normalized FFO available to common stockholders 19,249 17,326 38,262 34,596 Less: Non-cash rental income (758) (521) (1,530) (1,003) Normalized adjusted FFO (AFFO) 18,491 16,805 36,732 33,593 Add: Non-cash compensation charges 523 458 1,051 910 Normalized funds available for distribution (FAD) 19,014 $ 17,263 $ 37,783 $ 34,503 $ $0.57 $0.57 $1.16 $1.13 $0.57 $0.56 $1.18 $1.12 $0.55 $0.55 $1.14 $1.09 $0.57 $0.56 $1.17 $1.12 (1) (2) Diluted normalized FAD per share Six Months Ended June 30, June 30, Three Months Ended Represents the one-time severance and accelerated restricted stock vesting charges related to the retirement of our Senior Vice President, Marketing and Strategic Planning. Represents revenue from the Sunwest bankruptcy settlement distribution. Diluted FFO available to common stockholders per share Diluted normalized FFO available to common stockholders per share Diluted normalized AFFO per share

Funds from Operations 29 FINANCIAL FINANCIAL (dollar amounts in thousands, except per share amounts)) Normalized FFO Per Share Reconciliation 2012 2012 Normalized FFO available to common stockholders $ 19,249 $ 17,326 $ 38,262 $ 34,596 Effect of dilutive securities: Participating securities 91 91 189 185 Convertible preferred securities 818 818 1,636 1,636 Convertible non-controlling interests - 10 - 21 Diluted normalized FFO available to common stockholders $ 20,158 $ 18,245 $ 40,087 $ 36,438 32,913 30,213 31,645 30,201 Effect of dilutive securities: Stock options 33 45 34 45 Participating securities 193 207 202 208 Convertible preferred securities 2,000 2,000 2,000 2,000 Convertible non-controlling interests - 23 - 25 Shares for diluted FFO per share 35,139 32,488 33,881 32,479 $0.58 $0.57 $1.21 $1.15 $0.57 $0.56 $1.18 $1.12 Diluted normalized FFO per share Shares for basic FFO per share Basic normalized FFO per share 2013 2013 Three Months Ended June 30, Six Months Ended June 30,

30 GLOSSARY Glossary Adjusted Funds From Operations (“AFFO”): FFO excluding the effects of non-cash rental income. Assisted Living Properties (“ALF”): The ALF portfolio consists of assisted living, independent living, and/or memory care properties. (See Independent Living and Memory Care) Assisted living properties are senior housing properties serving elderly persons who require assistance with activities of daily living, but do not require the constant supervision skilled nursing properties provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs. Contractual Lease Rent: Rental revenue as defined by the lease agreement between us and the operator for the lease year. Core Based Statistical Area (“CBSA”): Based on the U.S. Census Bureau, CBSA is a collective term for both metro and micro areas. Each metro or micro area consists of one or more counties and includes the counties containing the core urban area, as well as any adjacent counties that have a high degree of social and economic integration (as measured by commuting to work) with the urban core. EBITDA: Earnings before interest, taxes, depreciation and amortization. EBITDAR Coverage: From the operator financial statements, the trailing twelve month’s earnings before interest, taxes, depreciation, amortization, and rent divided by the operator’s contractual lease rent. Management fees are imputed at 5% of revenues. EBITDARM Coverage: From the operator financial statements, the trailing twelve month’s earnings before interest, taxes, depreciation, amortization, rent and management fees divided by the operator’s contractual lease rent. Funds Available for Distribution (“FAD”): FFO excluding the effects of non-cash rental income and non-cash compensation charges. Funds From Operations (“FFO”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), net income available to common stockholders (computed in accordance with U.S. 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. GAAP Lease Yield: GAAP rent divided by the purchase price. GAAP Rent: Total rent we will receive as a fixed amount over the life of the lease and recognized evenly over that life. GAAP rent recorded in the early years of a lease is higher than the cash rent received and during the later years of the lease, the cash rent received is higher than GAAP rent recognized. GAAP rent is commonly referred to as straight-line rental income. Gross Asset Value: Represents undepreciated book value. Gross Investment: Original price paid for an asset plus capital improvements funded by LTC Properties, Inc. (“LTC”), without any depreciation deductions. Gross Investment is commonly referred to as undepreciated book value.

31 GLOSSARY Glossary Independent Living Properties (“ILF”): Senior housing properties offering a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers. ILFs are also known as retirement communities or senior apartments. Interest Income: Represents interest income from mortgage loans. Licensed Beds/Units: The number of beds and/or units that an operator is authorized to operate at senior housing and long-term care properties. Licensed beds and/or units may differ from the number of beds and/or units in service at any given time. Memory Care Properties (“MC”): Senior housing properties offering specialized options for seniors with Alzheimer’s disease and other forms of dementia. These facilities offer dedicated care and specialized programming for various conditions relating to memory loss in a secured environment that is typically smaller in scale and more residential in nature than traditional assisted living facilities. These facilities have staff available 24 hours a day to respond to the unique needs of their residents. Metropolitan Statistical Areas (“MSA”): Based on the U.S. Census Bureau, MSA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A metro area contains a core urban area of 50,000 or more population. (See Core Based Statistical Area) Micropolitan Statistical Areas (“Micro-SA”): Based on the U.S. Census Bureau, Micro-SA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A micro area contains an urban core of at least 10,000 (but less than 50,000) population. (See Core Based Statistical Area) Net Real Estate Assets: Gross investment less accumulated depreciation. Net Real Estate Asset is commonly referred to as Net Book Value (“NBV”). Non-cash Rental Income: Straight-line rental income and amortization of lease inducement. Non-cash Compensation Charges: Vesting expense relating to stock options and restricted stock. Normalized AFFO: FFO adjusted for non-recurring, infrequent or unusual items and excludes the non-cash rental income. Normalized FAD: FFO adjusted for non-recurring, infrequent or unusual items and excludes the non-cash rental income and non-cash compensation charges. Normalized FFO: FFO adjusted for non-recurring, infrequent or unusual items. Occupancy: The weighted average percentage of all beds and/or units that are occupied at a given time. The calculation uses the trailing twelve months and is based on licensed beds and/or units which may differ from the number of beds and/or units in service at any given time. Operator Financial Statements: Property level operator financial statements are unaudited and have not been independently verified by us.

32 GLOSSARY Glossary Private Pay: Private pay includes private insurance, HMO, VA, and other payors. Purchase Price: Represents the fair value price of an asset that is exchanged in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets; it is not a forced transaction (for example, a forced liquidation or distress sale). Quality Mix: LTC revenue by operator underlying payor source for the quarter presented. LTC is not a Medicaid or a Medicare recipient. Statistics represent LTC's rental revenues times operators' underlying payor source revenue percentage. Underlying payor source revenue percentage is calculated from property level operator financial statements which are unaudited and have not been independently verified by us. Range of Care (“ROC”): Range of care properties consist of properties providing skilled nursing and any combination of assisted living, independent living and/or memory care services. Rental Income: Represents GAAP rent net of amortized lease inducement cost from continuing and discontinued operations. Same Property Portfolio (“SPP”): Same property statistics allow management to evaluate the performance of LTC’s leased property portfolio under a consistent population, which eliminates the changes in the composition of our portfolio of properties. We identify our same property portfolio as stabilized properties that are, and remained, in operations for the duration of the quarter-over quarter comparison periods presented. Accordingly, it takes a stabilized property a minimum of 12 months in operations to be included in our same property portfolio. Schools: An institution for educating students which include private and charter schools. Private schools are not administered by local, state or national governments; therefore, funded in whole or part by student tuition rather than government funded. Charter schools provide an alternative to the traditional public school. Charter schools are generally autonomous entities authorized by the state or locality to conduct operations independent from the surrounding public school district. Laws vary by state, but generally charters are granted by state boards of education either directly or in conjunction with local school districts or public universities. Operators are granted charters to establish and operate schools based on the goals and objectives set forth in the charter. Upon receipt of a charter, schools receive an annuity from the state for each student enrolled. Skilled Nursing Properties (“SNF”): Senior housing properties providing restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many SNFs provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. Stabilized: Newly acquired operating assets are generally considered stabilized at the earlier of lease-up (typically when occupancy reaches 80% at a SNF or 90% at an ALF) or 12 months from the acquisition date. Newly completed developments, including redevelopments, major renovations, and property additions, are considered stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. Under Development Properties (“UDP”): Development projects to construct senior housing properties.