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: February 20, 2014

(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 February 20, 2014, LTC Properties, Inc. announced the operating results for the three and twelve months ended December 31, 2013. 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

99.1Press Release issued February 20, 2014.

99.2LTC Properties, Inc. Supplemental Information Package for the period ending December 31, 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: February 20, 2014	By:	/s/ WENDY L. SIMPSON
		Wendy L. Simpson
		Chairman, 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 FOURTH QUARTER 2013 RESULTS

WESTLAKE VILLAGE, CALIFORNIA, February 20, 2014 — LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”) announces today operating results for the quarter ended December 31, 2013.  The Company reported an increase of 13.8% in Funds from Operations (“FFO”) to $20.0 million in the quarter ended December 31, 2013, from $17.5 million in the comparable 2012 period.  FFO per diluted common share was $0.57 for the quarters ended December 31, 2013 and 2012.  Normalized FFO increased by 24.3% to $21.9 million in the fourth quarter of 2013 from $17.7 million in the fourth quarter of 2012.  Normalized FFO per diluted common share was $0.62 and $0.57 for the quarters ended December 31, 2013 and 2012, respectively.  The increase in FFO and normalized FFO was due to higher revenues from mortgage loan originations, acquisitions and completed property developments.

Net income available to common stockholders for the quarter ended December 31, 2013 was $13.7 million or $0.40 per diluted share as compared to $11.9 million or $0.39 per diluted share for the same period in 2012. The increase in net income available to common stockholders for the quarter ended December 31, 2013 was primarily due to mortgage loan originations, acquisitions and completed property developments offset by non-cash provisions for loan loss reserves related to a mortgage loan origination and the write-off of straight-line rent in accordance with Generally Accepted Accounting Principles.

Conference Call Information

The Company will conduct a conference call on Friday, February 21, 2014, at 8:00 a.m. Pacific Time, to provide commentary on the Company’s performance and operating results for the quarter ended December 31, 2013.  The conference call is accessible by dialing 888-317-6016 (domestically) or 412-317-6016 (internationally).  An audio replay of the conference call will be available from February 21 through March 7, 2014 and may be accessed by dialing 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering conference number 10040227.  The Company’s earnings release and supplemental information package for the current period will be available on the Company’s website at www.LTCProperties.com in the “Press Releases” and “Presentations” sections, respectively, of the “Investor Information” tab.

1

About LTC

At December 31, 2013, LTC had 227 investments located in 30 states comprising of 100 skilled nursing properties, 106 assisted living properties, 9 range of care properties, two schools, six parcels of land under development and four parcels of land held-for-use.  These properties are located in 30 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 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)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
	(unaudited)						(audited)
Revenues:
Rental income	$	25,259		$	22,844		$	98,166		$	86,022
Interest income from mortgage loans	3,103			1,135			6,298			5,496
Interest and other income	231			146			510			964
Total revenues	28,593			24,125			104,974			92,482
Expenses:
Interest expense	2,852			2,907			11,364			9,932
Depreciation and amortization	6,237			5,560			24,389			21,613
Provisions (recovery) for doubtful accounts	2,139			(78		)	2,180			(101		)
General and administrative expenses	2,715			3,212			11,636			10,732
Total expenses	13,943			11,601			49,569			42,176
Income from continuing operations	14,650			12,524			55,405			50,306
Discontinued operations:
Net income from discontinued operations	—			254			805			1,005
Gain on real estate assets, net	—			—			1,605			16
Net income from discontinued operations	—			254			2,410			1,021
Net income	14,650			12,778			57,815			51,327
Income allocated to non-controlling interests	—			(7		)	—			(37		)
Net income attributable to LTC Properties, Inc.	14,650			12,771			57,815			51,290
Income allocated to participating securities	(99		)	(98		)	(383		)	(377		)
Income allocated to preferred stockholders	(819		)	(819		)	(3,273		)	(3,273		)
Net income available to common stockholders	$	13,732		$	11,854		$	54,159		$	47,640
Basic earnings per common share:
Continuing operations	$	0.40		$	0.38		$	1.56		$	1.54
Discontinued operations	$	0.00		$	0.01		$	0.07		$	0.03
Net income available to common stockholders	$	0.40		$	0.39		$	1.64		$	1.58
Diluted earnings per common share:
Continuing operations	$	0.40		$	0.38		$	1.56		$	1.54
Discontinued operations	$	0.00		$	0.01		$	0.07		$	0.03
Net income available to common stockholders	$	0.40		$	0.39		$	1.63		$	1.57
Weighted average shares used to calculate earnings per common share:
Basic	34,555			30,297			33,111			30,238
Diluted	34,582			30,341			33,142			30,278

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.

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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. The Company believes FFO, AFFO 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 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 like 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 have a different interpretation of the current NAREIT definition from that of the Company; therefore, caution should be exercised when comparing our Company’s FFO to that of other REITs.

We define 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.

While 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, such measures are not representative of 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.

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

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Net income available to common stockholders	$	13,732		$	11,854		$	54,159		$	47,640
Add: Depreciation and amortization (continuing and discontinued operations)	6,237			5,692			24,706			22,153
Less: Gain on sale of real estate, net	—			—			(1,605		)	(16		)
FFO available to common stockholders	19,969			17,546			77,260			69,777
Add: Non-cash interest related to earn-out liabilities	—			109			256			439
Less: Non-recurring one-time items	1,980		(1)	—			2,687		(2)	(347		)(3)
Normalized FFO available to common stockholders	21,949			17,655			80,203			69,869
Add (less): Non-cash rental income	(790		)	(900		)	(3,295		)	(2,604		)
Normalized adjusted FFO (AFFO)	21,159			16,755			76,908			67,265
Add: Non-cash compensation charges	541			464			2,134			1,819
Normalized funds available for distribution (FAD)	$	21,700		$	17,219		$	79,042		$	69,084
(1)Comprised of a $1,244 provision for loan loss reserve on a $124,387 mortgage loan origination and an $869 non-cash write-off of straight-line rent offset by revenue from the Sunwest bankruptcy settlement distribution of $133. (2)Represents a one-time severance and accelerated restricted stock vesting charge of $707 related to the retirement of the Company’s former Senior Vice President, Marketing and Strategic Planning and (1) above. (3)Represents revenue from the Sunwest bankruptcy settlement distribution.
Basic FFO available to common stockholders per share	$	0.58		$	0.58		$	2.33		$	2.31
Diluted FFO available to common stockholders per share	$	0.57		$	0.57		$	2.29		$	2.26
Diluted FFO available to common stockholders	$	20,788		$	18,470		$	80,916		$	73,464
Weighted average shares used to calculate diluted FFO per share available to common stockholders	36,582			32,548			35,342			32,508
Basic normalized FFO available to common stockholders per share	$	0.64		$	0.58		$	2.42		$	2.31
Diluted normalized FFO available to common stockholders per share	$	0.62		$	0.57		$	2.37		$	2.26
Diluted normalized FFO available to common stockholders	$	22,867		$	18,579		$	83,859		$	73,556
Weighted average shares used to calculate diluted normalized FFO per share available to common stockholders	36,778			32,548			35,342			32,508
Basic normalized AFFO per share	$	0.61		$	0.55		$	2.32		$	2.22
Diluted normalized AFFO per share	$	0.60		$	0.54		$	2.28		$	2.18
Diluted normalized AFFO	$	21,978		$	17,679		$	80,564		$	70,952
Weighted average shares used to calculate diluted normalized AFFO per share	36,582			32,548			35,342			32,508
Basic normalized FAD per share	$	0.63		$	0.57		$	2.39		$	2.28
Diluted normalized FAD per share	$	0.61		$	0.56		$	2.34		$	2.24
Diluted normalized FAD	$	22,618		$	18,143		$	82,698		$	72,771
Weighted average shares used to calculate diluted normalized FAD per share	36,778			32,548			35,342			32,508

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LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, audited)

	December 31, 2013			December 31, 2012
ASSETS
Real estate investments:
Land	$	80,993		$	74,702
Buildings and improvements	856,624			811,867
Accumulated depreciation and amortization	(218,700		)	(194,448		)
Net real estate property	718,917			692,121
Properties held-for-sale, net of accumulated depreciation and amortization: 2013 — $0; 2012 — $4,100	—			9,426
Net real estate property	718,917			701,547
Mortgage loans receivable, net of allowance for doubtful accounts: 2013 — $1,671; 2012 — $782	165,444			39,299
Real estate investments, net	884,361			740,846
Other assets:
Cash and cash equivalents	6,778			7,191
Debt issue costs, net	2,458			3,040
Interest receivable	702			789
Straight-line rent receivable, net of allowance for doubtful accounts: 2013 — $1,541; 2012 — $1,513	29,760			26,766
Prepaid expenses and other assets	6,756			7,542
Notes receivable	595			3,180
Straight-line rent receivable and other assets related to properties held-for-sale, net of allowance for doubtful accounts: 2013 — $0; 2012 — $44	—			238
Total assets	$	931,410		$	789,592
LIABILITIES
Bank borrowings	$	21,000		$	115,500
Senior unsecured notes	255,800			185,800
Bonds payable	2,035			2,635
Accrued interest	3,424			3,279
Earn-out liabilities	—			6,744
Accrued expenses and other liabilities	16,713			12,165
Accrued expenses and other liabilities related to properties held-for-sale	—			361
Total liabilities	298,972			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 — 34,746; 2012 — 30,544	347			305
Capital in excess of par value	688,654			510,236
Cumulative net income	781,848			724,033
Accumulated other comprehensive income	117			152
Cumulative distributions	(877,028		)	(810,125		)
Total LTC Properties, Inc. stockholders’ equity	632,438			463,101
Non-controlling interests	—			7
Total equity	632,438			463,108
Total liabilities and equity	$	931,410		$	789,592

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EX-99.2

Exhibit 99.2

Supplemental Operating and Financial Data December 31, 2013 (Unaudited) Rendering Combination of Assisted Living and Memory Care – Wichita, KS (77 units) Operated by Oxford Senior Living

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 7-13 Real Estate Portfolio Summary 14 Real Estate Portfolio Metrics 15 Real Estate Portfolio Diversification 16-19 Top Ten Operators 20 Extendicare Inc. and Assisted Living Concepts, Inc. 21 Lease & Mortgage Loan Receivable Maturity 22 Market Value 23 Debt Maturity 24 Financial Data Summary 25-26 Consolidated Statements of Income 27 Consolidated Balance Sheets . 28 Funds from Operations . 29-30 Glossary . 31-33

3 Company Information CORPORATE Wendy Simpson Boyd Hendrickson Edmund King Chairman Lead Director Devra Shapiro Timothy Triche, MD Wendy Simpson Pam Kessler Clint Malin Chairman, Chief Executive Officer and President 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 forward-looking 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, 2013 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 26, 29, and 30 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) ACQUISITIONS 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. In July 2013, we received the certificate of occupancy on 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. In October 2013, we received the certificate of occupancy on a newly constructed 77-unit memory care property in Kansas. The new memory care property opened in October 2013. See page 7 for Lease-Up Activity. See page 7 for Development Activity. Simultaneous with the purchase, we entered into a lease agreement and development commitments totaling $30.3 million to fund the construction. The property was included in a master lease at an incremental initial cash yield of 8.75%. The GAAP yield on the master lease will be 10.7%. LOAN ORIGINATIONS Date # of Properties # Beds/Units Location Operator Date of Construction Purchase Price Annual GAAP Revenue GAAP Lease Yield 3/23/12 1 SNF 144 beds TX Senior Care Centers 2002 18,600 $ 1,988 $ 10.7% 5/14/12 1 UDP (1) 60 units CO Under Development Property 2012-2013 (1) 1,882 - - (1) 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 (2) 77 units KS Under Development Property 2012-2013 (2) 730 - - (2) 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 (3) 81 units TX Under Development Property 2013-2014 (3) 1,000 - - (3) 12/28/12 1 UDP (3) 143 beds KY Under Development Property 2013-2015 (3) 2,050 - - (3) Total 2012 13 665 beds/484 units 166,750 9/13/2013 1 UDP (3) 60 units CO Under Development Property 2013-2014 (3) 1,200 - (3) - (3)(4) 9/20/2013 1 UDP (3) 48 units CO Under Development Property 2013-2014 (3) 850 - (3) - (3)(4) 10/31/2013 4 Land N/A MI Prestige Healthcare N/A 1,163 - - 11/1/2013 1 SNF 120 beds FL Traditions Management 2008 (5) 14,402 - (5) - (5) 12/20/2013 1 UDP (3) 60 units CO Under Development Property 2013-2015 (3) 1,425 (3) - (3)(4) Total 2013 8 120 beds/168 units 19,040 Total 21 785 beds/652 units $ 185,790 Property Type Date # of Properties Property Type # Beds/Units Location Borrower Operator 11/15/12 1 SNF/UDP (1) 106 beds WI Hartford Healthcare Fundamental 7,590 $ 755 $ 10.1% 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 $ 12,690 $ 1,117 10/31/13 15 SNF 2,092 beds MI Affiliates of Madison Healthcare Prestige Healthcare 124,387 $ 11,854 $ 9.5% Total 2013 15 2,092 beds 124,387 $ 11,854 $ Total 17 2,198 beds / 70 units $ 137,077 $ 12,971 Funded to Date Interest Rate Annual Revenue

7 Development and Lease-Up Activity REAL ESTATE PORTFOLIO (dollar amounts in thousands) Includes land and excludes capitalized interest on our open commitment. Interest on the current outstanding construction loan balance is paid monthly in arrears. Based on Treasury rate and/or Treasury rate plus spread but not less than the rate shown. Interest on additional loan proceeds (see footnote 5 below) begins upon funding. Under the mortgage loan, the commitment to fund additional loan proceeds for approved capital improvement projects expires on March 31, 2016. Mortgage loan originated on October 31, 2013 provides for a $12.0 million commitment to fund renovations and/or expansions at certain properties securing the mortgage loan. DEVELOPMENT Represents a newly developed 120-bed skilled nursing property in Texas which replaces a skilled nursing property in our existing portfolio. GAAP rent began in 3Q13. Represents a newly developed 60-unit memory care property in Colorado. GAAP rent began in 3Q13. In 4Q13, we received a vendor refund. Represents a newly developed 77-unit assisted living and memory care property in Kansas. GAAP rent began in 4Q13. LEASE-UP Project Type Location # of Projects Property Type # Beds/Units 2Q14 2012 Renovation Roswell, NM 1 SNF 9.00% - 1,540 $ - $ 1,056 $ 484 $ 2Q14 2012 Renovation Alamagordo, NM 1 SNF 9.00% - 710 - 371 339 - (2) 2012 Construction Loan Slinger, WI 1 SNF 9.25% (3) 106 beds 10,600 2,155 7,590 3,010 2Q14 2012 Expansion Arvada, CO 1 ALF/MC 7.75% (3) - 6,600 1 4 6,596 2Q14 2013 Renovation Hillview, TN 1 SNF 7.00% - 1,100 525 752 348 2Q14 2013 Renovation Lauderdale, TN 1 SNF 7.00% - 1,100 76 253 847 3Q14 2012 Development Frisco, TX 1 ALF/MC 9.25% 81 units 5,800 972 3,392 2,408 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 1 2 4,698 4Q14 2012 Renovation Ft. Collins, CO 1 ALF/MC 7.75% (3) - 3,300 1 2 3,298 4Q14 2013 Renovation St. Petersburg, FL 1 SNF 8.75% - 500 - - 500 4Q14 2013 Development Littleton, CO 1 MC 9.25% 60 units 9,931 1,455 3,337 6,594 12 106 beds/141 units 47,581 $ 5,186 $ 16,759 $ 30,822 $ 1Q15 2012 Development Coldspring, KY 1 SNF 8.50% 143 beds 23,500 $ 2,408 $ 10,325 $ 13,175 $ 1Q15 2013 Development Aurora, CO 1 MC 9.25% 48 units 9,621 116 1,486 8,135 1Q15 2013 Development Westminster, CO 1 MC 9.25% 60 units 10,703 2,437 2,437 8,266 - (4) 2013 Mortgage Loan (5) Various cities in MI 15 SNF 9.41% - 12,000 - - 12,000 18 143 beds/108 units 55,824 $ 4,961 $ 14,248 $ 41,576 $ Total 30 249 beds/249 units 103,405 $ 10,147 $ 31,007 $ 72,398 $ 4Q13 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 Coldspring, KY 143-bed skilled nursing property To be operated by Carespring Health Care Mgmt, LLC Rendering 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 Fundamental family of companies

11 REAL ESTATE PORTFOLIO Lease-Up Activity Lease-Up in Amarillo, TX 120-bed skilled nursing property Certificate of Occupancy – July 10, 2013 Operated by Fundamental family of companies

12 REAL ESTATE PORTFOLIO Rendering Lease-Up in Littleton, CO 60-unit memory care property Certificate of Occupancy – July 9, 2013 Operated by Anthem Memory Care Lease-Up Activity

13 REAL ESTATE PORTFOLIO Lease-Up in Wichita, KS 77-unit assisted living and memory care property Certificate of Occupancy – October 30, 2013 Operated by Oxford Senior Living Rendering Lease-Up Activity

14 Real Estate Portfolio Summary REAL ESTATE PORTFOLIO (dollar amounts in thousands) Real Estate Portfolio Snapshot Skilled Nursing Property – Cincinnati, OH (144 beds) Operated by Carespring Health Care Management, LLC Includes rental income and interest income from mortgage loans. Includes a mortgage and construction loan secured by a currently operating skilled nursing property and parcel of land upon which a 106-bed replacement property is being constructed. Includes four properties with 196 units devoted to memory care. Includes three MC developments with a total of 168 units, a combination ALF and MC developments with a total of 81 units, and a SNF development with 143 beds. Includes two school properties and four parcels of land held-for-use. Includes two months of interest from a $124,387 mortgage loan originated in 4Q13. Assuming a full year of interest income from this mortgage loan, interest income would have been $16,144. Type of Property Gross Investments Rental Income Interest Income % of Revenues (1) SNF Beds ALF Units Skilled Nursing (2) $ 611,160 55.3% $ 50,046 $ 4,881 52.6% 100 12,217 - $50.03 Assisted Living (3) 412,024 37.3% 41,641 1,103 40.9% 106 - 4,852 $84.92 Range of Care 46,509 4.2% 4,904 314 5.0% 9 733 348 $43.02 Under Development (4) 21,432 2.0% - - - - - - Other (5) 13,607 1.2% 1,575 - 1.5% 2 - - Total $ 1,104,732 100.0% $ 98,166 $6,298 (6) 100.0% 217 12,950 5,200 Investment per Bed/Unit # of Properties For the Year Ended December 31, 2013 % of Investments

15 Same Property Portfolio Statistics (1) Real Estate Portfolio Metrics REAL ESTATE PORTFOLIO Stabilized Property Portfolio Quality Mix Owned Properties 3Q13 2Q13 3Q13 2Q13 3Q13 2Q13 Assisted Living (2) 77.6% 77.3% 1.20 1.19 1.42 1.42 Assisted Living (3) 87.0% 86.6% 1.43 1.41 1.68 1.67 Skilled Nursing 79.0% 79.1% 1.79 1.84 2.44 2.49 Range of Care 86.9% 86.5% 1.36 1.41 1.81 1.86 (1) (2) (3) Includes properties leased to Extendicare Inc. and Assisted Living Concepts, Inc. Excludes properties leased to Extendicare Inc. and Assisted Living Concepts, Inc. Occupancy Normalized EBITDAR Coverage Normalized EBITDARM Coverage Information is for the trailing twelve months through September 30, 2013 and June 30, 2013 and is from property level operator financial statements which are unaudited and have not been independently verified by us.

LTC owns or holds mortgages on 217 properties, six parcels of land under development, and four parcels of land held-for-use in 30 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 22% of the Company’s total gross investment 16 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO 8 NV WY MI IL AR LA KY WV ME ND NY 34 2 1 2 3 5 1 2 3 2 2 2 2 2 6 20 3 5 4 10 11 4 5 2 6 1 4 2 9 7 4 3 3 8 1 1 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 Skilled Nursing Properties (Total: 100) Assisted Living Properties (Total: 106) Schools (Total: 2) Range of Care Properties (Total: 9) Under Development Properties (Total: 6) 1 3 1 15 1 1 Land Held-For-Use (Total: 4) 4

17 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO Property and Asset Type Diversification - Owned and Loan Portfolio Includes rental income and interest income from mortgage loans. Includes a mortgage and construction loan secured by a currently operating skilled nursing property and parcel of land upon which a 106-bed replacement property is being constructed. Includes four properties totaling 196 units devoted to memory care. Includes three MC developments with a total of 168 units, a combination ALF and MC developments with a total of 81 units, and a SNF development with 143 beds. Includes two school properties and four parcels of land held-for-use. Includes two months of interest from a $124,387 mortgage loan originated in 4Q13. Assuming a full year of interest income from this mortgage loan, revenue would have been $114,310. (dollar amounts in thousands) # of Gross Gross Property Type Beds/Units Investment % % Asset Type Investment % Skilled Nursing (2) 100 12,217 $ 611,160 55.3% $ 54,927 52.6% Real Property 937,617 $ 84.9% Assisted Living (3) 106 4,852 412,024 37.3% 42,744 40.9% Loans Receivable 167,115 15.1% Range of Care 9 1,081 46,509 4.2% 5,218 5.0% Total 1,104,732 $ 100.0% Under Development (4) - - 21,432 2.0% - - Other (5) 2 - 13,607 1.2% 1,575 1.5% Total 217 18,150 $ 1,104,732 100.0% $ 104,464 (6) 100.0% Properties Revenue (1) For the Year Ended # of December 31, 2013

18 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO State Diversification By Property Type - Owned and Loan Portfolio The MSA rank by population as of July 1, 2012, as estimated by the United States Census Bureau. 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 % OTH % Gross Investment % Texas 55 194,571 $ 31.8% 37,699 $ 9.1% 2,994 $ 6.4% 3,486 $ 16.3% - $ - 238,750 $ 21.6% Michigan 15 124,387 20.4% - - - - - - 1,163 8.5% 125,550 11.4% Ohio 13 54,000 8.8% 44,647 10.8% - - - - - - 98,647 8.9% Florida 18 41,027 6.7% 41,052 10.0% - - - - - - 82,079 7.4% New Jersey 5 - - 61,398 14.9% - - - - 9,270 68.1% 70,668 6.4% Colorado 12 6,038 1.0% 52,056 12.6% 2,007 4.3% 7,315 34.1% - - 67,416 6.1% California 5 20,649 3.4% 28,071 6.8% 2,602 5.6% - - - - 51,322 4.6% New Mexico 7 50,303 8.2% - - - - - - - - 50,303 4.6% Arizona 7 36,092 5.9% 5,120 1.2% - - - - - - 41,212 3.7% Kansas 8 14,111 2.3% 16,594 4.0% - - - - - - 30,705 2.8% All Others 72 69,982 11.5% 125,387 30.6% 38,906 83.7% 10,631 49.6% 3,174 23.4% 248,080 22.5% Total 217 611,160 $ 100.0% 412,024 $ 100.0% 46,509 $ 100.0% 21,432 $ 100.0% 13,607 $ 100.0% 1,104,732 $ 100.0%

19 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO Operator Diversification – Owned and Loan Portfolio We lease or mortgage 217 properties to 40 different operators. Includes annualized GAAP rent for leased properties and trailing twelve months interest income from properties secured by mortgage loans, except for Prestige Healthcare which we acquired in 4Q13. Prestige Healthcare includes annualized GAAP rent for leased properties and annualized interest income from properties secured by mortgage loans. Annual income also excludes GAAP rent from a lease related to four assisted living properties which is being transitioned to a new lessee. (dollar amounts in thousands) Operators (1) % % Prestige Healthcare 17 137,739 $ 12.5% 13,089 $ 11.3% Senior Care Centers, LLC 9 114,539 10.4% 12,284 10.6% Extendicare Inc. and Assisted Living Concepts, Inc 37 88,034 8.0% 10,963 9.4% Juniper Communities, LLC 6 87,088 7.9% 7,025 6.0% Brookdale Senior Living, Inc. 35 84,219 7.6% 10,948 9.4% Preferred Care 29 83,874 7.6% 11,336 9.8% Carespring Health Care Mgt, LLC 2 64,631 5.9% 5,431 4.7% Traditions Senior Management, Inc. 5 62,902 5.7% 6,761 5.8% Fundamental Family of Companies 6 42,805 3.9% 4,191 3.6% Skilled Healthcare Group, Inc. 5 40,270 3.6% 4,501 3.9% All Others 66 298,631 26.9% 29,653 25.5% Total 217 1,104,732 $ 100.0% 116,182 $ 100.0% # of Properties Gross Investment Annual Income (2)

20 Top Ten Operators REAL ESTATE PORTFOLIO Preferred Care, Inc. (privately held) operates 105 facilities comprised of skilled nursing, assisted living, and independent living facilities, as well as five specialty care facilities, in 12 states. As of December 31, 2013, the LTC portfolio consisted of 27 skilled nursing and two range of care properties in six states with a gross investment balance of $83.9 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. Traditions Senior Management, Inc. and other affiliated entities (privately held) operate 23 facilities consisting of independent living, assisted living, and skilled nursing facilities in eight states. As of December 31, 2013, the LTC portfolio consisted of four skilled nursing properties and one range of care property operated by Traditions and another affiliate in three states with a gross investment balance of $62.9 million. They also operate two skilled nursing properties under a sub-lease with Preferred Care, Inc. which is not included in the Traditions rental revenue. Fundamental Family of Companies (privately held) includes skilled nursing facilities, assisted living facilities, long term acute care hospitals, hospices, outpatient clinics, behavioral health services and other healthcare services at 86 locations in 10 states. As of December 31, 2013, the LTC portfolio consisted six skilled nursing properties in three states with a gross investment balance of $42.8 million. Skilled Healthcare Group, Inc. (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 72 skilled nursing and 22 assisted living facilities in eight states. As of December 31, 2013, the LTC portfolio consisted of five skilled nursing properties in New Mexico with a gross investment balance of $40.3 million. 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 December 31, 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 $64.6 million. Brookdale Senior Living, Inc. (NYSE: BKD) operates more than 650 independent living, assisted living, and memory care communities and continuing care retirement centers, with the ability to serve approximately 67,000 residents. As of December 31, 2013, the LTC portfolio consisted of 35 assisted living properties in eight states with a gross investment balance of $84.2 million. Prestige Healthcare (privately held) provides skilled nursing, assisted living, and independent living services, and other rehabilitative and healthcare services at 35 facilities in seven states. As of December 31, 2013, the LTC portfolio consisted of 15 skilled nursing properties in Michigan and two range of care properties in South Carolina with a gross investment balance of $137.7 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 December 31, 2013, the LTC portfolio consisted of nine skilled nursing properties in Texas with a gross investment balance of $114.5 million. 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 December 31, 2013. Extendicare Inc. (TSX: EXE) operates 245 senior care centers in North America with the ability to serve approximately 27,000 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 own or operate 210 senior living residences with over 9,000 units in 20 states. 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 December 31, 2013, the LTC portfolio consisted of six assisted living and memory care properties in three states with a gross investment balance of $87.1 million.

21 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. Twelve Months Ended September 30, 2013 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 Normalized EBITDAR Coverage (1) 0.74x Normalized EBITDARM Coverage (1) 0.91x % of Portfolio Income 9.2% of Annual Income

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) Rental Revenue and Interest Income Maturity Includes annualized GAAP rent for leased properties and trailing twelve months interest income from properties secured by mortgage loans, except for Prestige Healthcare which we acquired in 4Q13. Prestige Healthcare includes annualized GAAP rent for leased properties and annualized interest income from properties secured by mortgage loans. Excludes GAAP rent from a lease related to four assisted living properties which is being transitioned to a new lessee. % of Total % of Total Annual Income (1) % of Total 2014 12,951 $ 13.0% 1,203 $ 7.5% 14,154 $ 12.2% 2015 1,132 1.1% 314 1.9% 1,446 1.3% 2016 2,581 2.6% 78 0.5% 2,659 2.3% 2017 1,638 1.6% 1,085 6.7% 2,723 2.3% 2018 10,620 10.6% 1,021 6.3% 11,641 10.0% 2019 1,596 1.6% 140 0.9% 1,736 1.5% 2020 11,850 11.9% - - 11,850 10.2% 57,670 57.6% 12,303 76.2% 69,973 60.2% Total 100,038 $ 100.0% 16,144 $ 100.0% 116,182 $ 100.0% Thereafter Year Interest Income (1) Rental Income (1)(2)

23 Market Value FINANCIAL Includes amortization of debt issue cost. Includes letter of credit fees. 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. Traded on NYSE. Closing price of our common stock as reported by the NYSE on December 31, 2013, the last trading day of fourth quarter 2013. (In thousands, except per share amounts and number of shares) Capitalization Bank borrowings - LIBOR + 1.25% 21,000 $ Senior unsecured notes -weighted average rate 4.85% (1) 255,800 Bonds payable - weighted average rate 2.94% (2) 2,035 Total debt 278,835 18% No. of shares Preferred stock -Series C (3) 38,500 2% Common stock (4) 34,745,585 35.39 $ (5) 1,229,646 80% Total equity 1,268,146 82% 1,546,981 $ 100% Debt to Total Market Value Debt & Preferred to Total Market Value Debt to Normalized EBITDA Closing Price Total Market Value 2.9x At December 31, 2013 Debt 18.0% 20.5% Equity

24 Debt Maturity (in thousands) FINANCIAL (in thousands) Reflects scheduled principal payments. $ - $ 4,167 $ 635 $ 4,802 - 29,166 1,400 30,566 21,000 26,667 - 47,667 - 26,167 - 26,167 - 28,167 - 28,167 - 25,666 - 25,666 - 32,160 - 32,160 - 83,640 - 83,640 $ 21,000 $ 255,800 $ 2,035 $ 278,835 2020 2017 2016 2015 2014 2018 Year Unsecured Line of Credit Senior Unsecured Notes (1) Bonds Payable (1) Total 2019 Total Thereafter

25 Financial Data Summary FINANCIAL (dollar amounts in thousands) Balance Sheet, Leverage Ratios, and Coverage Ratios 12/31/13 12/31/12 12/31/11 12/31/10 Balance Sheet: Gross real estate assets $1,104,732 $940,176 $779,033 $675,673 Net real estate assets 884,361 740,846 599,916 515,983 Gross asset value 1,150,110 988,140 825,293 719,973 Total debt 278,835 303,935 159,200 91,430 Total liabilities 298,972 326,484 178,387 103,742 Preferred stock 38,500 38,500 38,500 126,913 Total equity 632,438 463,108 468,710 457,522 Leverage Ratios: Debt to gross asset value 24.2% 30.8% 19.3% 12.7% Debt & preferred stock to gross asset value 27.6% 34.7% 24.0% 30.3% Debt to total market value 18.0% 21.4% 14.0% 9.5% Debt & preferred stock to total market value 20.5% 24.2% 17.4% 23.0% Coverage Ratios: Debt to normalized EBITDA 2.9x 3.7x 2.1x 1.4x Normalized EBITDA / interest expense 8.4x 8.4x 11.7x 24.5x Normalized EBITDA / fixed charges 6.5x 6.3x 6.3x 4.0x For the Year Ended

26 Financial Data Summary FINANCIAL FINANCIAL (dollar amounts in thousands) Non-Cash Rental Revenue Components For leases in place, excluding a lease related to four assisted living properties which is being transitioned to a new lessee, and 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 Represents the one-time severance and accelerated restricted stock vesting charge of $707 related to the retirement of the Company’s former Senior Vice President, Marketing and Strategic Planning, a $1,244 provision for loan loss reserve on a $124,387 mortgage loan origination and an $869 non-cash write off of straight-line rent offset by revenue from the Sunwest bankruptcy settlement distribution of $133. Represents revenue from the Sunwest bankruptcy settlement distribution. Includes a $1,237 provision for doubtful accounts charge related to two mortgage loans (one secured by a private school property located in Minnesota and one secured by land located in Oklahoma) partially offset by a $770 bankruptcy settlement distribution relating to Sunwest. Net income 57,815 $ 51,327 $ 49,443 $ 46,053 $ Less: Gain on sale of real estate, net (1,605) (16) - (310) Add: Interest expense 11,364 9,932 6,434 2,653 Add: Depreciation and amortization (continuing and discontinued operations) 24,706 22,153 19,623 16,109 Adjusted EBITDA 92,280 83,396 75,500 64,505 Add back/(deduct): Non-recurring one-time items 2,687 (1) (347) (2) - 467 (3) Normalized EBITDA 94,967 $ 83,049 $ 75,500 $ 64,972 $ Interest expense 11,364 $ 9,932 $ 6,434 $ 2,653 $ Preferred stock dividend 3,273 3,273 5,512 13,662 Fixed Charges 14,637 $ 13,205 $ 11,946 $ 16,315 $ 12/31/10 12/31/12 12/31/13 For the Year Ended 12/31/11

Consolidated Statements of Income 27 FINANCIAL FINANCIAL (dollar amounts in thousands, except per share amounts, unaudited) 2013 2012 2013 2012 Revenues Rental income 25,259 $ 22,844 $ 98,166 $ 86,022 $ Interest income from mortgage loans 3,103 1,135 6,298 5,496 Interest and other income 231 146 510 964 Total revenues 28,593 24,125 104,974 92,482 Expenses Interest expense 2,852 2,907 11,364 9,932 Depreciation and amortization 6,237 5,560 24,389 21,613 Provision (recovery) for doubtful accounts 2,139 (78) 2,180 (101) General and administrative expenses 2,715 3,212 11,636 10,732 Total expenses 13,943 11,601 49,569 42,176 Income from continuing operations 14,650 12,524 55,405 50,306 Discontinued operations: Net income from discontinued operations - 254 805 1,005 Gain on sale of assets, net - - 1,605 16 Net income from discontinued operations - 254 2,410 1,021 Net income 14,650 12,778 57,815 51,327 Income allocated to non-controlling interests - (7) - (37) Net income attributable to LTC Properties, Inc. 14,650 12,771 57,815 51,290 Income allocated to participating securities (99) (98) (383) (377) Income allocated to preferred stockholders (819) (819) (3,273) (3,273) Net income available to common stockholders 13,732 $ 11,854 $ 54,159 $ 47,640 $ Basic earnings per common share: $0.40 $0.39 $1.64 $1.58 Diluted earnings per common share: $0.40 $0.39 $1.63 $1.57 Weighted average shares used to calculate earnings per common share: Basic 34,555 30,297 33,111 30,238 Diluted 34,582 30,341 33,142 30,278 December 31, Twelve Months Ended Three Months Ended December 31,

Consolidated Balance Sheets 28 FINANCIAL FINANCIAL (amounts in thousands) December 31, 2012 December 31, 2012 (unaudited) (audited) (unaudited) (audited) ASSETS LIABILITIES Real estate investments: Bank borrowings 21,000 $ 115,500 $ Land 80,993 $ 74,702 $ Senior unsecured notes 255,800 185,800 Buildings and improvements 856,624 811,867 Bonds payable 2,035 2,635 Accumulated depreciation and amortization (218,700) (194,448) Accrued interest 3,424 3,279 Net operating real estate property 718,917 692,121 Earn-out liabilities - 6,744 Properties held-for-sale, net of accumulated depreciation Accrued expenses and other liabilities 16,713 12,165 and amortization: 2013 - $0; 2012 - $4,100 - 9,426 Accrued expenses and other liabilities Net real estate property 718,917 701,547 related to properties held-for-sale - 361 Mortgage loans receivable, net of allowance for Total liabilities 298,972 326,484 doubtful accounts: 2013 - $1,671; 2012 - $782 165,444 39,299 Real estate investments, net 884,361 740,846 EQUITY Other assets: Preferred stock (1) 38,500 38,500 Cash and cash equivalents 6,778 7,191 Common stock (2) 347 305 Debt issue costs, net 2,458 3,040 Capital in excess of par value 688,654 510,236 Interest receivable 702 789 Cumulative net income 781,848 724,033 Straight-line rent receivable , net of allowance for Other 117 152 doubtful accounts: 2013 - $1,541; 2012 - $1,513 29,760 26,766 Cumulative distributions (877,028) (810,125) Prepaid expenses and other assets 6,756 7,542 Total LTC stockholders' equity 632,438 463,101 Notes receivable 595 3,180 Straight-line rent receivable and other assets related to properties Non-controlling interests - 7 held-for-sale, net of allowance for doubtful accounts: 2013 - $0; 2012 - $44 - 238 Total equity 632,438 463,108 Total assets 931,410 $ 789,592 $ Total liabilities and equity 931,410 $ 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 - 34,746; 2012 - 30,544 December 31, 2013 December 31, 2013

Funds from Operations 29 FINANCIAL FINANCIAL (unaudited, dollar amounts in thousands, except per share amounts) Reconciliation of Normalized FFO, Normalized AFFO, and Normalized FAD 2013 2012 2013 2012 Net income available to common stockholders 13,732 $ 11,854 $ 54,159 $ 47,640 $ Add: Depreciation and amortization (continuing and discontinued operations) 6,237 5,692 24,706 22,153 Less: Gain on sale of real estate, net - - (1,605) (16) FFO available to common stockholders 19,969 17,546 77,260 69,777 Add: Non-cash interest related to earn-out liabilities - 109 256 439 Less: Non-recurring one-time items 1,980 (1) - 2,687 (2) (347) (3) Normalized FFO available to common stockholders 21,949 17,655 80,203 69,869 Add (less): Non-cash rental income (790) (900) (3,295) (2,604) Normalized adjusted FFO (AFFO) 21,159 16,755 76,908 67,265 Add: Non-cash compensation charges 541 464 2,134 1,819 Normalized funds available for distribution (FAD) 21,700 $ 17,219 $ 79,042 $ 69,084 $ $0.57 $0.57 $2.29 $2.26 $0.62 $0.57 $2.37 $2.26 $0.60 $0.54 $2.28 $2.18 $0.61 $0.56 $2.34 $2.24 (1) (2) (3) Diluted normalized FAD per share Twelve Months Ended December 31, December 31, Three Months Ended Comprised of a $1,244 provision for loan loss reserve on a $124,387 mortgage loan origination and an $869 non-cash write-off of straight-line rent offset by revenue from the Sunwest bankruptcy settlement distribution of $133. 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 Represents the one-time severance and accelerated restricted stock vesting charge of $707 related to the retirement of the Company's former Senior Vice President, Marketing and Strategic Planning and (1) above.

Funds from Operations 30 FINANCIAL FINANCIAL Normalized FFO Per Share Reconciliation (unaudited, dollar amounts in thousands, except per share amounts) 2012 2012 Normalized FFO available to common stockholders $ 21,949 $ 17,655 $ 80,203 $ 69,869 Effect of dilutive securities: Participating securities 99 98 383 377 Convertible preferred securities 819 819 3,273 3,273 Convertible non-controlling interests - 7 - 37 Diluted normalized FFO available to common stockholders $ 22,867 $ 18,579 $ 83,859 $ 73,556 34,555 30,297 33,111 30,238 Effect of dilutive securities: Stock options 27 26 31 40 Participating securities 196 207 200 208 Convertible preferred securities 2,000 2,000 2,000 2,000 Convertible non-controlling interests - 18 - 22 Shares for diluted FFO per share 36,778 32,548 35,342 32,508 $0.64 $0.58 $2.42 $2.31 $0.62 $0.57 $2.37 $2.26 Diluted normalized FFO per share Shares for basic FFO per share Basic normalized FFO per share 2013 2013 Three Months Ended December 31, Twelve Months Ended December 31,

31 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 ac tivities of daily living, but do not require the co nstant supervision skilled nursing properties provide. Services are usually available 24 hours a day and include personal su pervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of hous ing, 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 Ar ea (“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 t hat 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. Funds Available for Distribution (“FAD”): FFO excluding the effect s of non - cash rental income and non - cash compensation charges . Funds From Operations (“FFO”): A s defined by the National Association of Real Estate Investment Trusts (“NAREIT”), net income available to common stockholder s (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 reco rded 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 total assets plus accumulated depreciation. Gross Investment: Original price paid for an asset plus capital improvements funded by LTC Properties, Inc. (“LTC”), without any depreciation d eductions. Gross Investment is commonly referred to as undepreciated book value. 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 e mergency response programs. Many offer on - site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers. ILFs are also kn own as retirement communities or senior apartments. Interest Income: Represents intere st 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.

32 GLOSSARY Glossary Memory Care Properties (“MC”): Senior housing properties offering specialized options for seniors with Alzheimer’s disease and other forms of dementia. The se facilities offer dedicated care and specialized programming for various conditions relating to memory loss in a secured envir o nment 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 Re al 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 EBITDAR Coverage: The trailing twelve month’s earnings from the operator financial statements adjusted for non - recurring, i nfrequent, or unusual items and before interest, taxes, depreciation, amortization, and rent divided by the operator’s contractual lease rent. Man agement fees are imputed at 5% of revenues. Normalized EBITDARM Coverage: The trailing twelve month’s earni ngs from the operator financial statements adjusted for non - recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, rent, and management fees divided by the operator’s contractual lease rent. Normalized FAD: FFO ad justed 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 trailin g 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 an y given time. Operator Financial Statements: Property level operator financial statements are unaudited and have not been independently verified by us. Private Pay: Private pay includes private insurance, HMO, VA, and other payors. Purchase Price: R epresents the fair value price of an asset that is exchanged in an orderly transaction between market participants at the mea surement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement d ate 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).

33 GLOSSARY Glossary Glossary Quality Mix: LTC revenue by operator underlying payor source for the twelve months 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 propert y 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 a nd 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 po rtfolio 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 loca l, state or national governments; therefore, funded in whole or part by student tuition rather than government funded. Charter schools provide an alternative to the trad itional 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 di stricts or public universities. Operators are granted char ters 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 properti es 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, s peech, physical, respirat ory 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 fede ral Medicare or state Medicaid programs. Stabilized: Newly acquired operating assets are gen erally 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 additi ons, 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.