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: November 3, 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 November 3, 2014, LTC Properties, Inc. announced the operating results for the nine months ended September 30, 2014. 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 November 3, 2014.

99.2LTC Properties, Inc. Supplemental Information Package for the period ending September 30, 2014.

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: November 3, 2014	By:	/s/ WENDY L. SIMPSON
		Wendy L. Simpson
		Chairman, CEO & President

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EX-99.1

Exhibit 99.1

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

LTC REPORTS THIRD QUARTER 2014 RESULTS AND

RESOLUTION OF RE-LEASING AND SALES

PROCESS FOR 37 PROPERTIES

WESTLAKE VILLAGE, CALIFORNIA, November 3, 2014 — LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”) announces today operating results for the quarter ended September 30, 2014. The Company reported an increase of 12.8% in Funds from Operations (“FFO”) to $22.5 million in the quarter ended September 30, 2014, from $20.0 million in the comparable 2013 period. FFO per diluted common share was $0.64 and $0.57 for the quarters ended September 30, 2014 and 2013, respectively. Normalized FFO increased by 12.6% to $22.5 million in the third quarter of 2014 from $20.0 million in the third quarter of 2013. Normalized FFO per diluted common share was $0.64 and $0.57 for the quarters ended September 30, 2014 and 2013, 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 decreased to $16.2 million in the third quarter of 2014, or $0.46 per diluted share, from $16.4 million, or $0.47 per diluted share, for the same period in 2013. The decrease in net income available to common stockholders was primarily due to a gain on sale recognized in 2013 and higher interest expense related to the sale of senior unsecured notes offset by an increase in revenues from mortgage loan originations, acquisitions and completed property developments.

Subsequent to September 30, 2014, the Company entered into three agreements relating to the 37 assisted living properties currently leased to affiliates of Extendicare, Inc. (“Extendicare”) and Enlivant as follows:

·LTC will sell 16 properties, consisting of 615 units located in Washington, Oregon, Idaho and Arizona to an affiliate of Enlivant for a sales price of $26.5 million. Accordingly, the Company expects to record a gain on sale of approximately $3.9 million with closing expected to occur in December 2014. Additionally, LTC gave Extendicare and Enlivant consent to close a property located in Oregon. LTC is currently exploring sale and lease options for this property which has a net book value of $1.0 million.

·The Company will add 13 properties with 500 units in Indiana, Iowa, Ohio, Nebraska and New Jersey to an existing master lease with an affiliate of Senior Lifestyle (“Senior Lifestyle”). Beginning January 1, 2015 the initial term of the amended and restated master lease will be 15 years and rent will increase by $5.1 million over the current annual rent annually by 2.6%.

·The Company re-leased seven properties with 278 units in Texas to Veritas InCare (“Veritas”) under a new 10-year master lease. Beginning January 1, 2015 the initial rent will be $1.5 million increasing 2.5% annually.

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Extendicare and Enlivant are obligated to pay rent in accordance with the terms of the current master leases through December 31, 2014. The initial cash yield on the 20 properties re-leased to Senior Lifestyle and Veritas is comparable to the cash yield in 2014 under the expiring master leases with Extendicare and Enlivant. Additionally, the master leases will provide LTC with the potential for additional rent attributable to participation in revenue growth at the properties over a predetermined base amount.

Conference Call Information

The Company will conduct a conference call on Tuesday, November 4, 2014, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time), to provide commentary on the Company’s performance and operating results for the quarter ended September 30, 2014. The conference call is accessible by telephone and the internet. Telephone access will be available by dialing 877-510-2862 (domestically) or 412-902-4134 (internationally). To participate in the webcast, log on to the Company’s website at www.LTCreit.com 15 minutes before the call to download the necessary software.

An audio replay of the conference call will be available from November 4 through November 18, 2014 and may be accessed by dialing 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering conference number 10054900. Additionally, an audio archive will be available on the Company’s website in the “Presentations” page of the “Investor Information” section which is under “Investors” tab. The Company’s earnings release and supplemental information package for the current period will be available on the Company’s website in the “Press Releases” and “Presentations” pages, respectively, of the “Investor Information” section which is under the “Investors” tab.

About LTC

At September 30, 2014, LTC had 226 investments located in 29 states comprising of 101 skilled nursing properties, 106 assisted living properties, nine range of care properties, one school, four parcels of land under development and five parcels of land held-for-use. 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.LTCreit.com.

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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.

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LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited amounts in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues:
Rental income	$	25,098		$	24,645		$	75,375		$	72,907
Interest income from mortgage loans	4,213			1,086			12,445			3,195
Interest and other income	230			94			386			279
Total revenues	29,541			25,825			88,206			76,381
Expenses:
Interest expense	3,170			2,581			9,445			8,512
Depreciation and amortization	6,335			6,139			18,935			18,152
General and administrative expenses	2,914			2,676			8,567			8,962
Total expenses	12,419			11,396			36,947			35,626
Operating income	17,122			14,429			51,259			40,755
Gain on sale of real estate, net	—			—			1,140			—
Income from continuing operations	17,122			14,429			52,399			40,755
Discontinued operations:
Income from discontinued operations	—			238			—			805
Gain on sale of real estate, net	—			2,619			—			1,605
Net income from discontinued operations	—			2,857			—			2,410
Net income	17,122			17,286			52,399			43,165
Income allocated to participating securities	(123		)	(95		)	(343		)	(284		)
Income allocated to preferred stockholders	(818		)	(818		)	(2,454		)	(2,454		)
Net income available to common stockholders	$	16,181		$	16,373		$	49,602		$	40,427
Basic earnings per common share:
Continuing operations	$	0.47		$	0.39		$	1.43		$	1.17
Discontinued operations	$	0.00		$	0.08		$	0.00		$	0.07
Net income available to common stockholders	$	0.47		$	0.47		$	1.43		$	1.24
Diluted earnings per common share:
Continuing operations	$	0.46		$	0.39		$	1.42		$	1.16
Discontinued operations	$	0.00		$	0.08		$	0.00		$	0.07
Net income available to common stockholders	$	0.46		$	0.47		$	1.42		$	1.24
Weighted average shares used to calculate earnings per common share:
Basic	34,605			34,553			34,596			32,625
Diluted	36,629			36,580			36,620			34,657

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 available 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 September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net income available to common stockholders	$	16,181		$	16,373		$	49,602		$	40,427
Add: Depreciation and amortization (continuing and discontinued operations)	6,335			6,202			18,935			18,469
Less: Gain on sale of real estate, net	—			(2,619		)	(1,140		)	(1,605		)
FFO available to common stockholders	22,516			19,956			67,397			57,291
Add: Non-cash interest related to earn-out liabilities	—			36			—			256
Add: Non-recurring one-time items	—			—			—			707		(1)
Normalized FFO available to common stockholders	22,516			19,992			67,397			58,254
Less: Non-cash rental income	(452		)	(975		)	(1,369		)	(2,505		)
Normalized adjusted FFO (AFFO)	22,064			19,017			66,028			55,749
Add: Non-cash compensation charges	877			542			2,326			1,593
Less: Capitalized interest	(474		)	(218		)	(1,216		)	(718		)
Normalized funds available for distribution (FAD)	$	22,467		$	19,341		$	67,138		$	56,624

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

Basic FFO available to common stockholders per share	$	0.65	$	0.58	$	1.95	$	1.76
Diluted FFO available to common stockholders per share	$	0.64	$	0.57	$	1.91	$	1.72
Diluted FFO available to common stockholders	$	23,457	$	20,869	$	70,194	$	60,029
Weighted average shares used to calculate diluted FFO per share available to common stockholders	36,869		36,779		36,841		34,858
Basic normalized FFO available to common stockholders per share	$	0.65	$	0.58	$	1.95	$	1.79
Diluted normalized FFO available to common stockholders per share	$	0.64	$	0.57	$	1.91	$	1.75
Diluted normalized FFO available to common stockholders	$	23,457	$	20,905	$	70,194	$	60,992
Weighted average shares used to calculate diluted normalized FFO per share available to common stockholders	36,869		36,779		36,841		34,858
Basic normalized AFFO per share	$	0.64	$	0.55	$	1.91	$	1.71
Diluted normalized AFFO per share	$	0.62	$	0.54	$	1.87	$	1.68
Diluted normalized AFFO	$	23,005	$	19,930	$	68,825	$	58,487
Weighted average shares used to calculate diluted normalized AFFO per share	36,869		36,779		36,841		34,858
Basic normalized FAD per share	$	0.65	$	0.56	$	1.94	$	1.74
Diluted normalized FAD per share	$	0.63	$	0.55	$	1.90	$	1.70
Diluted normalized FAD	$	23,408	$	20,254	$	69,935	$	59,362
Weighted average shares used to calculate diluted normalized FAD per share	36,869		36,779		36,841		34,858

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LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

	September 30, 2014			December 31, 2013
	(unaudited)			(audited)
ASSETS
Real estate investments:
Land	$	79,661		$	80,993
Buildings and improvements	886,351			856,624
Accumulated depreciation and amortization	(234,634		)	(218,700		)
Net real estate property	731,378			718,917
Mortgage loans receivable, net of allowance for doubtful accounts: 2014 — $1,730; 2013 — $1,671	171,321			165,444
Real estate investments, net	902,699			884,361
Other assets:
Cash and cash equivalents	7,589			6,778
Debt issue costs, net	2,036			2,458
Interest receivable	661			702
Straight-line rent receivable, net of allowance for doubtful accounts: 2014 — $720; 2013 — $1,541	31,581			29,760
Prepaid expenses and other assets	6,858			6,756
Notes receivable	1,147			595
Total assets	$	952,571		$	931,410
LIABILITIES
Bank borrowings	$	19,500		$	21,000
Senior unsecured notes	281,633			255,800
Bonds payable	1,400			2,035
Accrued interest	2,424			3,424
Accrued expenses and other liabilities	15,937			16,713
Total liabilities	320,894			298,972
EQUITY
Stockholders’ equity:
Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2014 — 2,000; 2013 — 2,000	38,500			38,500
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2014 — 34,845; 2013 — 34,746	348			347
Capital in excess of par value	691,249			688,654
Cumulative net income	834,247			781,848
Accumulated other comprehensive income	91			117
Cumulative distributions	(932,758		)	(877,028		)
Total equity	631,677			632,438
Total liabilities and equity	$	952,571		$	931,410

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EX-99.2

Exhibit 99.2

Supplemental Operating and Financial Data September 30, 2014 (Unaudited) Assisted Living Property – Vacaville, CA Operated by Brookdale Senior Living

Table of Contents 2 CORPORATE Company Information 3 Additional Information 4 Forward-Looking Statements & Non-GAAP Information 5 Real Estate Activities 6-9 Real Estate Portfolio Summary 10 Real Estate Portfolio Metrics 11 Real Estate Portfolio Diversification 12-14 Top Ten Operators 15 Extendicare and Enlivant, formerly Assisted Living Concepts 16 Real Estate Portfolio Maturity 17 Enterprise Value 18 Debt Maturity 19 Financial Data Summary 20-21 Consolidated Statements of Income 22 Consolidated Balance Sheets . 23 Funds from Operations . 24-25 Glossary . 26-28

3 Company Information CORPORATE Wendy Simpson Boyd Hendrickson Edmund King Chairman Lead Director James Pieczynski Devra Shapiro Timothy Triche, MD Wendy Simpson Pam Kessler Clint Malin Chairman, Chief Executive Officer and President Executive Vice President, CFO, and Secretary Executive Vice President and Chief Investment Officer Brent Chappell Cece Chikhale Mark Hemingway Senior VP, Investment and Portfolio Management Vice President, Controller and Treasurer Vice President of Marketing Peter Lyew Vice President and Director of Taxes Corporate Office Investor Relations www.LTCreit.com 2829 Townsgate Road, Suite 350 Investor.Relations@LTCreit.com (805) 981-8655 phone Westlake Village, CA 91361 (805) 981-8655 (805) 981-8663 fax Board of Directors 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 and other health care related properties leased to qualified, 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.LTCreit.com .

4 CORPORATE Additional Information Crowell, Weedon, & Co. J.J. B. Hilliard, W.L. Lyons, Inc. JMP Securities, LLC Douglas A. Christopher, CFA John Roberts Peter Martin KeyBanc Capital Markets, Inc. Mizuho Securities USA Inc. MLV & Co LLC Karin A. Ford Richard Anderson Paul Morgan RBC Capital Markets Corporation Stifel, Nicolaus & Company, Inc. Wells Fargo Securities, LLC Mike Carroll Daniel 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 21, 24, and 25 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.LTCreit.com. CORPORATE

6 Real Estate Activities REAL ESTATE PORTFOLIO (dollar amounts in thousands) ACQUISITIONS See page 7 for Development Activities. Simultaneous with the purchase, we entered into a lease agreement and development commitments totaling $42.5 million. See page 7 for Development Activities. The property was included in a master lease at an incremental initial cash yield of 8.75%. The GAAP yield on the master lease is 10.7%. LOAN ORIGINATIONS Date # of Properties # Beds/Units Location Operator Date of Construction Purchase Price Annual GAAP Revenue GAAP Lease Yield 9/13/2013 1 UDP (1)(2) 60 units Littleton, CO Under Development Property 2013-2014 (1) 1,200 $ - (1) - (1) 9/20/2013 1 UDP (1)(2) 48 units Aurora, CO Under Development Property 2013-2015 (1) 850 - (1) - (1) 10/31/2013 4 Land N/A Various cities in MI Prestige Healthcare N/A 1,163 - - 11/1/2013 1 SNF 120 beds Trinity, FL Traditions Management 2008 (3) 14,402 - (3) - (3) 12/20/2013 1 UDP (1)(2) 60 units Westminster, CO Under Development Property 2013-2015 (1) 1,425 (1) - (1) 8 168 units/120 beds 19,040 $ 10/22/2014 1 UDP (1)(2) 66 units Burr Ridge, IL Under Development Property 2014-2016 (1) 1,400 $ - (1) - (1) Property Type Development Funding Funded to Date Annual Revenue Interest Rate 10/31/13 15 SNF 2,058 beds Various cities in MI Affiliates of Madison Healthcare Prestige Healthcare $124,387 $125,900 $11,996 9.5% 7/31/14 1 ALF 100 beds Phoenix, AZ GrayHC-PVRE Gray Health Care $3,027 $- $- $242 7.0%

7 Real Estate Activities REAL ESTATE PORTFOLIO (dollar amounts in thousands) Includes land and excludes capitalized interest on our open commitment. Based on Treasury rate and/or Treasury rate plus spread but not less than the rate shown. Interest on additional loan proceeds (see footnote 4 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. Subsequent to September 30, 2014, we purchased a parcel of land in Illinois for $1.4 million and entered into a development commitment to construct a 66-unit free-standing memory care property. DEVELOPMENT ACTIVITIES LEASE-UP Represents a newly developed 77-unit assisted living and memory care property in Kansas. GAAP rent began in 4Q13. Represents a mortgage and construction loan secured by a newly constructed 106-bed property which replaced a closed skilled nursing property. Funding was completed in 2Q14 and the closed skilled nursing property was sold in October 2014. Represents a newly developed 60-unit memory care property in Colorado. GAAP rent began in 3Q14. Date Opened Occupancy at Sept 30, 2014 Commitment Year Project Type Location # of Projects Property Type Approximate Cash Lease/Loan Yield # Beds/Units Oct-13 95% 2012 Development (1) Wichita, KS 1 ALF/MC 9.25% 77 units 10,585 $ 101 $ 10,225 $ Feb-14 61% 2012 Redevelopment (2) Slinger, WI 1 SNF 10.08% 106 beds 10,600 - 10,600 Aug-14 37% 2013 Development (3) Littleton, CO 1 MC 9.25% 60 units 9,931 1,153 9,529 3 137 units/106 beds 31,116 $ 1,254 $ 30,354 $ Total Commitment 3Q14 Funding Total Funded to Date Oct-13 95% 2012 Development (1) Wichita, KS 1 ALF/MC 9.25% 77 units $10,585 $101 $10,225 Feb-14 61% 2012 Redevelopment (2) Slinger, WI 1 SNF 10.08% 106 beds 10,600 - 10,600 Aug-14 37% 2013 Development (3) Littleton, CO 1 MC 9.25% 60 units 9,931 1,153 9,529 3 137 units/106 beds $31,116 $1,254 $30,354 4Q14 2012 Development Frisco, TX 1 ALF/MC 9.25% 80 units $5,800 (1) $375 $5,340 $460 4Q14 2012 Expansion/Renovation Fort Collins, CO 2 ALF/MC 7.75% (2) - 8,000 3,794 4,642 3,358 4Q14 2012 Development Coldspring, KY 1 SNF 8.50% 143 beds 23,500 (1) 2,029 15,932 7,568 4Q14 2013 Renovation Hillview/Lauderdale, TN 2 SNF 7.00% - -2,200 268 1,978 222 4Q14 2013 Renovation St. Petersburg, FL 1 SNF 8.75% - 500 146 146 354 7 80 units/143 beds $40,000 $6,612 $28,038 $11,962 1Q15 2013 Development Aurora, CO 1 MC 9.25% 48 units $9,622 (1) $2,297 $6,884 $2,738 2Q15 2013 Development Westminister, CO 1 MC 9.25% 60 units 10,703 (1) 1,889 6,664 4,039 - (3) 2014 Renovation(4) Various cities in MI 15 SNF 9.41% - 12,000 816 1,513 10,487 17 108 units $32,325 $5,002 $15,061 $17,264 2Q16 2014 Development Burr Ridge, IL 1 MC 9.30% 66 units 12,248 $(1) - $- $(5) 12,248 $ Total 25 WA 8.87% 254 units/143 beds 84,573 $11,614 $ 43,099 $41,474

8 REAL ESTATE PORTFOLIO Rendering Real Estate Activities Lease-Up in Littleton, CO Willowbrook Place, Kipling Parkway 60-unit memory care property Certificate of Occupancy – August 14, 2014 Operated by Anthem Memory Care

9 REAL ESTATE PORTFOLIO Real Estate Activities Rendering Development in Frisco, TX 80-unit assisted living and memory care property To be operated by Mustang Creek Management

10 Real Estate Portfolio Summary REAL ESTATE PORTFOLIO (dollar amounts in thousands) Real Estate Snapshot – Owned and Loan Portfolio Includes rental income and interest income from mortgage loans and excludes rental income from properties sold during the trailing twelve months ended September 30, 2014. Includes a mortgage and construction loan secured by a newly constructed 106-bed replacement property and a closed skilled nursing property which was sold in October 2014. Includes two MC developments with a total of 108 units, a combination ALF and MC development with a total of 80 units, and a SNF development with 143 beds. Includes one school property and five parcels of land held-for-use. Includes eleven months of interest from a $124,387 mortgage loan originated in 4Q13 and $1,513 of renovation funding on this loan. Assuming a full year of interest income from this mortgage loan, total portfolio interest income would be $16,612. Gross Investment Type Investment % Real Property 966,012 $ 84.8% Loans Receivable 173,051 15.2% Total 1,139,063 $ 100.0% Real Estate Snapshot — Owned and Loan Portfolio Trailing Twelve Months Ended September 30, 2014 Gross % of Rental Interest % of # of SNF ALF Investment per Type of Property Investments Investments Income(1) Income(1) Revenues Properties Beds Units Bed/Unit Skilled Nursing(2) $ 615,869 54.1% $ 51,260 $ 14,125 56.6% 101 12,183 - $50.55 Assisted Living 429,922 37.7% 42,342 1,131 37.7% 106 - 4,931 $87.19 Range of Care 46,293 4.1% 5,059 291 4.6% 9 733 348 $42.82 Under Development(3) 36,096 3.2% - - - - - - Other(4) 10,883 0.9% 1,290 - 1.1% 1 - - Total $ 1,139,063 100.0% $ 99,951 $15,547 (5) 100.0% 217 12,916 5,279 Same Property Portfolio Statistics (1) Normalized Normalized Occupancy EBITDARM Coverage EBITDAR Coverage Owned Properties 2Q14 1Q14 2Q14 1Q14 2Q14 1Q14 Assisted Living (2) 80.2% 80.4% 1.40 1.40 1.18 1.18 Assisted Living (3) 89.5% 89.2% 1.66 1.64 1.42 1.40 Skilled Nursing 79.9% 79.9% 2.29 2.29 1.69 1.69 Range of Care 83.4% 83.6% 1.80 1.81 1.30 1.31

11 Same Property Portfolio Statistics (1) Real Estate Portfolio Metrics REAL ESTATE PORTFOLIO Stabilized Property Portfolio Quality Mix Owned Properties Payor Source (1) Private Pay Medicare Medicaid (1) Quality mix for our skilled nursing portfolio, for the twelve months presented, is 25.4% Private Pay, 27.9% Medicare, and 46.7% Medicaid. For the Twelve Months Ended June 30, 2014 58.7% 15.3% 26.0%

LTC owns or holds mortgages on 217 properties, four parcels of land under development, and five parcels of land held-for-use in 29 states. 12 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO WA ME 1 8 NV WY MI IL AR LA KY WV ND NY 34 2 1 2 3 5 2 2 3 2 2 2 2 3 6 20 3 5 4 9 11 4 5 2 6 1 4 2 10 7 4 3 3 8 1 1 1 1 1 2 2 1 1 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: 101) Assisted Living Properties (Total: 106) Schools (Total: 1) Range of Care Properties (Total: 9) Under Development Properties (Total: 4) 1 2 15 1 Land Held-For-Use (Total: 5) 5

13 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, 2013, 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 55 193,780 $ 31.4% 37,565 $ 8.7% 2,994 $ 6.5% 5,586 $ 15.5% - $ - 239,925 $ 21.1% Michigan 15 125,900 20.4% - - - - - - 1,613 14.8% 127,513 11.2% Ohio 13 54,000 8.8% 44,647 10.4% - - - - - - 98,647 8.7% Colorado 13 6,038 1.0% 72,721 16.9% 2,007 4.3% 13,833 38.3% - - 94,599 8.3% Florida 17 41,080 6.7% 36,586 8.5% - - - - - - 77,666 6.8% New Jersey 5 - - 61,397 14.3% - - - - 9,270 85.2% 70,667 6.2% California 5 20,649 3.3% 28,070 6.5% 2,387 5.2% - - - - 51,106 4.5% New Mexico 7 50,622 8.2% - - - - - - - - 50,622 4.4% Arizona 8 36,092 5.9% 8,143 1.9% - - - - - - 44,235 3.9% Kansas 8 14,111 2.3% 17,145 4.0% - - - - - - 31,256 2.7% All Others 71 73,597 12.0% 123,648 28.8% 38,905 84.0% 16,677 46.2% - - 252,827 22.2% Total 217 615,869 $ 100.0% 429,922 $ 100.0% 46,293 $ 100.0% 36,096 $ 100.0% 10,883 $ 100.0% 1,139,063 $ 100.0%

14 Real Estate Portfolio Diversification REAL ESTATE PORTFOLIO Operator Diversification – Owned and Loan Portfolio We have investments in 29 states leased or mortgaged to 38 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 originated in 4Q13. Prestige Healthcare includes annualized GAAP rent for leased properties and annualized interest income from properties secured by a mortgage loan. Also, Prestige Healthcare includes additional interest from capital improvement funding under the mortgage loan. Formerly Assisted Living Concepts (dollar amounts in thousands) Operators (1) % % Prestige Healthcare 17 139,702 $ 12.3% 13,231 $ 11.1% Brookdale Senior Living 37 123,230 10.8% 12,154 10.2% Senior Care Centers 9 114,539 10.1% 12,336 10.4% Extendicare and Enlivant (3) 37 88,034 7.7% 10,963 9.2% Juniper Communities 6 87,088 7.6% 7,031 5.9% Preferred Care 29 83,526 7.3% 11,297 9.5% Carespring Health Care Management 2 70,678 6.2% 5,431 4.6% Traditions Senior Management 5 63,047 5.5% 6,761 5.7% Fundamental 7 46,134 4.1% 4,832 4.1% Skilled Healthcare Group 5 40,270 3.5% 4,501 3.8% All Others 63 282,815 24.9% 30,297 25.5% Total 217 1,139,063 $ 100.0% 118,834 $ 100.0% # of Properties Gross Investment Annual Income (2)

15 Top Ten Operators REAL ESTATE PORTFOLIO Prestige Healthcare (privately held) provides skilled nursing, assisted living, and independent living services, and other rehabilitative and hea lthcare services at 35 facilities in seven states. As of September 30, 2014, the LTC portfolio consisted of 15 skilled nursing pr operties and five parcels of land held - for - use in Michigan and two range of care properties in South Carolina with a gross investment balance of $139.7 million. Brookdale Senior Living (NYSE: BKD) operates 1,150 independent living, assisted living, and mem ory care communities and continuing care retirement centers, with the ability to serve approximately 110,000 residents. As of September 30, 2014, the LTC portfolio consisted of 37 assisted living propertie s in nine states with a gross investment balance of $123.2 million. Senior Care Centers (privately held) provides skilled nursing care, memory care, assisted living, and independent living services in 82 facilitie s exclusively in Texas. As of September 30, 2014, the LTC portfolio consisted of nine skilled nursing properties in Texas with a gross investment balance of $114.5 million. Extendicare (TSX: EXE) and Enlivant (privately held), formerly known as Assisted Living Concepts operate 37 of our assisted living properties in 10 states with a gross investment balance of $88.0 million as of September 30, 2014. Extendicare operates 251 senior care centers in North America with the capacity to care for approximately 27,600 residents. EXE offers a continuum of health care services that includes skilled nursing care, rehabilitative therapies and home health care services. Privately held Enlivant and its subsidiaries own or operate over 200 senior living residences with over 9,000 units in 20 states. Juniper Communities (privately held) operates 20 facilitie s comprised of skilled nursing, assisted living, memory care, and independent living facilities in four states. As of September 30, 2014, the LTC portfolio consisted of six assisted living and memory care properties in three states with a gross investme nt balance of $87.1 million. Preferred Care (privately held) operates 106 facilities comprised of skilled nursing, assisted living, and independent living facilities, as well as five specialty care facilities, in 12 states. As of September 30, 2014, the LTC portfolio consisted of 27 skilled nursing and two range of care properties in six states with a gross investment balance of $ 83.5 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. Carespring Health Care Management (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 September 30, 2014, the LTC portfolio consisted of two skilled nursing properties in Ohio and a parcel of land under development in Kentucky with a gross investment balance of $70.7 million. Traditions Senior Management and other affiliated entities (privately held) operate 21 facilities consisting of independent living, assisted living, and skilled nursing facilities in eight states. As of September 30, 2014, 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 $6 3.0 million. They also operate two skilled nursing properties under a sub-lease with Preferred Care, Inc. which is not included in the Traditions rental r evenue. Fundamental (privately held) includes skilled nursing facilities, assisted living facilities, long term acute care hospitals, hospices, o utpatient clinics, behavioral health services and other healthcare services at 77 locations in 9 states. As of September 30, 2014, the LTC portfolio consisted of seven skilled nursing properties in three states, with a gross investment balance of $46.1 million. 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 73 skilled nursing and 22 assisted living facilities in eight states. As of S eptember 30, 2014, the LTC portfolio consisted of five skilled nursing properties in New Mexico with a gross investment balance of $40.3 million. On August 18 th , Skilled Healthcare announced the signing of a definitive agreement to combine with Genesis Health Care with closing expected to occur in early 2015. The combined company would reportedly have trailing 12 - month revenues in excess of $5.5 billion with more than 500 facilities in 34 states and approximately 95,000 employees.

16 Extendicare (TSX: EXE) and Enlivant (privately held) (1) REAL ESTATE PORTFOLIO Formerly Assisted Living Concepts Twelve Months Ended June 30, 2014 (1) Co-lessee Extendicare and Enlivant Total # of Properties 37 properties Total # of Units 1,430 units Lease Expiration December 31, 2014 Normalized EBITDARM Coverage (2) 0.75x Normalized EBITDAR Coverage (2) 0.59x % of Portfolio Income 9.2% of Annual Income Master Lease I Master Lease II States # of Properties # of Units States # of Properties # of Units 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 (1) Formerly Assisted Living Concepts (2) Twelve Months Ended June 30, 2014

17 Real Estate Portfolio Maturity FINANCIAL (dollar amounts in thousands) Includes annualized GAAP rent for leased properties and trailing twelve months interest income from properties secured by mortgage loans, except for Prestige Healthcare which originated in 4Q13. Prestige Healthcare includes annualized GAAP rent for leased properties and annualized interest income from properties secured by a mortgage loan. Also, Prestige Healthcare includes additional interest from capital improvement funding under the mortgage loan. (As a % of Total Annual Income(1)) % of Total % of Total Annual Income (1) % of Total 2014 13,047 $ 12.8% 1,197 $ 7.2% 14,244 $ 12.0% 2015 - - 291 1.8% 291 0.2% 2016 3,440 3.4% 63 0.4% 3,503 2.9% 2017 1,653 1.6% 996 6.0% 2,649 2.2% 2018 10,666 10.4% 985 5.9% 11,651 9.8% 2019 1,596 1.6% 174 1.0% 1,770 1.5% 2020 13,055 12.8% - - 13,055 11.0% 58,766 57.4% 12,905 77.7% 71,671 60.4% Total 102,223 $ 100.0% 16,611 $ 100.0% 118,834 $ 100.0% Year Rental Income (1) Interest Income (1) Thereafter

18 Enterprise Value FINANCIAL Subsequent to September 30, 2014, we amended our Unsecured Credit Agreement increasing the commitment to $400,000 with the opportunity to increase the credit line up to $600,000. The maturity of the facility was also extended to October 14, 2018. Includes amortization of debt issue cost. Subsequent to September 30, 2014, we redeemed $1,400 multifamily tax-exempt revenue bonds that was secured by five assisted living properties in Washington. 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 September 30, 2014, the last trading day of third quarter 2014. Normalized EBITDA for the twelve months ended September 30, 2014. (In thousands, except per share amounts and number of shares) Capitalization Bank borrowings (1) 19,500 $ Senior unsecured notes -weighted average rate 4.8% (2) 281,633 Bonds payable - weighted average rate 3.3% (3) 1,400 Total debt 302,533 19% 9/30/14 No. of shares Preferred stock - Series C (4) 38,500 2% Common stock (5) 34,844,551 36.89 $ (6) 1,285,415 79% Total equity 1,323,915 81% 1,626,448 $ 100% Less: Cash and cash equivalents (7,589) 1,618,859 $ Debt to Enterprise Value 18.7% Debt & Preferred to Enterprise Value 21.1% Debt to Normalized EBITDA (7) 2.9x Enterprise Value At September 30, 2014 Debt Equity Closing Price Total Market Value

19 Debt Maturity (in thousands) FINANCIAL (dollar amounts in thousands) Subsequent to September 30, 2014, we amended our Unsecured Credit Agreement increasing the commitment to $400,000 with the opportunity to increase the credit line up to $600,000. The maturity of the facility was also extended to October 14, 2018. Reflects scheduled principal payments. Subsequent to September 30, 2014, we redeemed $1,400 multifamily tax-exempt revenue bonds that was secured by five assisted living properties in Washington. $ - $ 29,166 $ 1,400 $ 30,566 19,500 26,667 - 46,167 - 26,167 - 26,167 - 28,167 - 28,167 - 25,666 - 25,666 - 32,160 - 32,160 - 32,160 - 32,160 - 81,480 - 81,480 $ 19,500 $ 281,633 $ 1,400 $ 302,533 Total Thereafter 2021 2020 2017 2016 2015 2019 2018 Year Unsecured Line of Credit (1) Senior Unsecured Notes (2) Bonds Payable (3) Total

20 Financial Data Summary FINANCIAL (dollar amounts in thousands) Balance Sheet, Leverage Ratios and Coverage Ratios 9/30/14 12/31/13 12/31/12 12/31/11 Balance Sheet: Gross real estate assets $1,139,063 $1,104,732 $940,176 $779,033 Net real estate assets 902,699 884,361 740,846 599,916 Gross asset value 1,187,205 1,150,110 988,140 825,293 Total debt 302,533 278,835 303,935 159,200 Total liabilities 320,894 298,972 326,484 178,387 Preferred stock 38,500 38,500 38,500 38,500 Total equity 631,677 632,438 463,108 468,710 Leverage Ratios: Debt to gross asset value 25.5% 24.2% 30.8% 19.3% Debt & preferred stock to gross asset value 28.7% 27.6% 34.7% 24.0% Debt to total enterprise value 18.7% 18.1% 21.6% 14.1% Debt & preferred stock to total enterprise value 21.1% 20.6% 24.3% 17.5% Coverage Ratios: Debt to normalized EBITDA 2.9x 2.9x 3.7x 2.1x Normalized EBITDA / interest incurred 7.7x 7.7x 8.3x 11.7x Normalized EBITDA / fixed charges 6.2x 6.1x 6.2x 6.3x Trailing Twelve Months Ended

21 Financial Data Summary FINANCIAL FINANCIAL (dollar amounts in thousands) Non-Cash Rental Revenue Components For leases in place at September 30, 2014, excluding leases on non-accrual status and no modification or replacement of existing leases, no lease renewals including the Extendicare/Enlivant (formerly Assisted Living Concepts) lease, and no new leased investments are added to our portfolio. Reconciliation of Normalized EBITDA and Fixed Charges Represents 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 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. Represents revenue from the Sunwest bankruptcy settlement distribution. 3Q14 (1) 4Q14 (1) 1Q15 (1) 2Q15 (1) 3Q15 (1) 673 $ 735 $ 844 $ 795 $ 618 $ (222) (251) (251) (251) (251) 451 $ 484 $ 593 $ 544 $ 367 $ Straight-line rent Amort of lease inducement Net Trailing Twelve Months Ended 9/30/14 12/31/13 12/31/12 12/31/11 Net income $ 67,049 $ 57,815 $ 51,327 $ 49,443 Less: Gain on sale of real estate, net (1,140) (1,605) (16) - Add: Interest expense 12,297 11,364 9,932 6,434 Add: Depreciation and amortization 25,172 24,706 22,153 19,623 Adjusted EBITDA 103,378 92,280 83,396 75,500 Add back/(deduct): Non-recurring one-time items 1,980 (1) 2,687 (2) (347) (3) - Normalized EBITDA $ 105,358 $ 94,967 $ 83,049 $ 75,500 Interest expense: $ 12,297 $ 11,364 $ 9,932 $ 6,434 Add: Capitalized interest 1,430 932 129 45 Interest incurred 13,727 12,296 10,061 6,479 Interest incurred 13,727 12,296 10,061 6,479 Preferred stock dividend 3,273 3,273 3,273 5,512 Fixed Charges $ 17,000 $ 15,569 $ 13,334 $ 11,991 (1) Represents 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 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. (3) Represents revenue from the Sunwest bankruptcy settlement distribution.

Consolidated Statements of Income 22 FINANCIAL FINANCIAL (unaudited amounts in thousands, except per share amounts) 2014 2013 2014 2013 Revenues Rental income 25,098 $ 24,645 $ 75,375 $ 72,907 $ Interest income from mortgage loans 4,213 1,086 12,445 3,195 Interest and other income 230 94 386 279 Total revenues 29,541 25,825 88,206 76,381 Expenses Interest expense 3,170 2,581 9,445 8,512 Depreciation and amortization 6,335 6,139 18,935 18,152 General and administrative expenses 2,914 2,676 8,567 8,962 Total expenses 12,419 11,396 36,947 35,626 Operating Income 17,122 14,429 51,259 40,755 Gain on sale of real estate, net - - 1,140 - Income from continuing operations 17,122 14,429 52,399 40,755 Discontinued operations: Income from discontinued operations - 238 - 805 Gain on sale of real estate, net - 2,619 - 1,605 Net income from discontinued operations - 2,857 - 2,410 Net Income 17,122 17,286 52,399 43,165 Income allocated to participating securities (123) (95) (343) (284) Income allocated to preferred stockholders (818) (818) (2,454) (2,454) Net income available to common stockholders 16,181 $ 16,373 $ 49,602 $ 40,427 $ Basic earnings per common share: $0.47 $0.47 $1.43 $1.24 Diluted earnings per common share: $0.46 $0.47 $1.42 $1.24 Weighted average shares used to calculate earnings per common share: Basic 34,605 34,553 34,596 32,625 Diluted 36,629 36,580 36,620 34,657 Three Months Ended Nine Months Ended September 30, September 30,

Consolidated Balance Sheets 23 FINANCIAL FINANCIAL (amounts in thousands, unaudited) December 31, 2013 December 31, 2013 ASSETS LIABILITIES Real estate investments: Bank borrowings 19,500 $ 21,000 $ Land 79,661 $ 80,993 $ Senior unsecured notes 281,633 255,800 Buildings and improvements 886,351 856,624 Bonds payable 1,400 2,035 Accumulated depreciation and amortization (234,634) (218,700) Accrued interest 2,424 3,424 Net real estate property 731,378 718,917 Accrued expenses and other liabilities 15,937 16,713 Mortgage loans receivable, net of allowance for Total liabilities 320,894 298,972 doubtful accounts: 2014 - $1,730; 2013 - $1,671 171,321 165,444 Real estate investments, net 902,699 884,361 EQUITY Other assets: Stockholders' equity: Cash and cash equivalents 7,589 6,778 Preferred stock (1) 38,500 38,500 Debt issue costs, net 2,036 2,458 Common stock (2) 348 347 Interest receivable 661 702 Capital in excess of par value 691,249 688,654 Straight-line rent receivable, net of allowance for Cumulative net income 834,247 781,848 doubtful accounts: 2014 - $720; 2013 - $1,541 31,581 29,760 Other 91 117 Prepaid expenses and other assets 6,858 6,756 Cumulative distributions (932,758) (877,028) Notes receivable 1,147 595 Total equity 631,677 632,438 Total assets 952,571 $ 931,410 $ Total liabilities and equity 952,571 $ 931,410 $ (1) Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2014 - 2,000; 2013 - 2,000 (2) Common stock $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2014 - 34,845; 2013 - 34,746 September 30, 2014 September 30, 2014

Funds from Operations 24 FINANCIAL FINANCIAL (unaudited, dollar amounts in thousands, except per share amounts) Reconciliation of Normalized FFO, Normalized AFFO, and Normalized FAD 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. 2014 2013 2014 2013 Net income available to common stockholders 16,181 $ 16,373 $ 49,602 $ 40,427 $ Add: Depreciation and amortization (continuing and discontinued operations) 6,335 6,202 18,935 18,469 Less: Gain on sale of real estate, net - (2,619) (1,140) (1,605) FFO available to common stockholders 22,516 19,956 67,397 57,291 Add: Non-cash interest related to earn-out liabilities - 36 - 256 Add: Non-recurring one-time items - - - 707 (1) Normalized FFO available to common stockholders 22,516 19,992 67,397 58,254 Less: Non-cash rental income (452) (975) (1,369) (2,505) Normalized adjusted FFO (AFFO) 22,064 19,017 66,028 55,749 Add: Non-cash compensation charges 877 542 2,326 1,593 Less: Capitalized interest (474) (218) (1,216) (718) Normalized funds available for distribution (FAD) 22,467 $ 19,341 $ 67,138 $ 56,624 $ $0.64 $0.57 $1.91 $1.72 $0.64 $0.57 $1.91 $1.75 $0.62 $0.54 $1.87 $1.68 $0.63 $0.55 $1.90 $1.70 Diluted normalized FAD per share Nine Months Ended September 30, September 30, Three Months Ended 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 25 FINANCIAL FINANCIAL Reconciliation of Normalized FFO Per Share (unaudited, dollar amounts in thousands, except per share amounts) 2013 2013 Normalized FFO available to common stockholders $ 22,516 $ 19,992 $ 67,397 $ 58,254 Effect of dilutive securities: Participating securities 123 95 343 284 Convertible preferred securities 818 818 2,454 2,454 Diluted normalized FFO available to common stockholders $ 23,457 $ 20,905 $ 70,194 $ 60,992 34,605 34,553 34,596 32,625 Effect of dilutive securities: Stock options 24 27 24 32 Participating securities 240 199 221 201 Convertible preferred securities 2,000 2,000 2,000 2,000 Shares for diluted FFO per share 36,869 36,779 36,841 34,858 $0.65 $0.58 $1.95 $1.79 $0.64 $0.57 $1.91 $1.75 Diluted normalized FFO per share Shares for basic FFO per share Basic normalized FFO per share 2014 2014 Three Months Ended September 30, Nine Months Ended September 30,

26 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 . Funds Available for Distribution (“FAD”): FFO excluding the effects 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 (compu ted 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 ven tures. GAAP Lease Yield: GAAP rent divided by the p urchase p rice. GAAP Rent: Total rent we will receive as a fixed amount over the life of the lease and recognize d 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 deprec i ation deductions. Gross Investment is commonly referred to as undepreciated book value. Independent Living Properties (“ILF”) : Senior housing properties offer ing 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.

27 GLOSSARY Glossary 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 m ore 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 Rea l 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 option s 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, infrequent, or unusual items and before interest, taxes, depreciation, amortization, and rent divided by the operator’s contractual lease rent. Management fees are imputed at 5% of revenues. Normalized EBITDARM Coverage: The trailing twelve month’s earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortiz ation, rent, and management fees divided by the operator’s contractual lease rent. 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: FF O 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.

28 GLOSSARY Glossary Glossary 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: Represents the fair value price of an asset that is exchanged in an orderly transaction between market participants at the me asurement 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 s ale). Quality Mix: LTC revenue by operator underlying payor source for the quarter presented. LTC is not a Medicaid or a Medicare recipient. Statistics repre sent 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 com position 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 o f 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 SNF s provide ancillary services that include occupation al, 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 project s to construct senior housing properties .