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:  May 2, 2016

(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 May 2, 2016, LTC Properties, Inc. announced the operating results for the three months ended March 31, 2016. 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 May 2, 2016.

99.2LTC Properties, Inc. Supplemental Information Package for the period ending March 31, 2016.

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:  May 2, 2016	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 2016 FIRST QUARTER RESULTS

AND ANNOUNCES NEW INVESTMENTS

—Subsequent to Quarter End Acquires Three Memory Care Communities,

Originates a Mortgage Loan and Locks Rate on Senior Unsecured Notes at 4.15%—

—Guest Speakers to Participate on May 3 Conference Call—

WESTLAKE VILLAGE, CALIFORNIA, May 2, 2016 — LTC Properties, Inc. (NYSE: LTC), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for its first quarter ended March 31, 2016 and recent investment activity.

Funds from Operations (“FFO”) and normalized FFO increased 21.1% to $28.3 million for the 2016 first quarter, up from $23.4 million for the comparable 2015 period. FFO per diluted common share and normalized FFO per diluted common share were $0.76 for the quarter ended March 31, 2016, compared with $0.65 for the same period in 2015, representing a 16.9% increase. Net income available to common stockholders was $19.8 million, or $0.53 per diluted share, for the 2016 first quarter compared with $16.6 million, or $0.47 per diluted share, for the same period in 2015. The improvement in FFO, normalized FFO and net income available to stockholders was primarily due to higher revenues from mortgage loan originations, acquisitions and completed development projects, partially offset by higher interest expense resulting from the sale of senior unsecured notes in April and November of 2015, and increased utilization of LTC’s line of credit, as well as additional general and administrative expenditures related to increased investment activity.

As previously announced, during the three months ended March 31, 2016, LTC purchased a newly constructed 126-bed skilled nursing center in Texas for $16.0 million and added the property to an existing master lease agreement at an initial incremental cash yield of 8.5%.

Subsequent to March 31, 2016, LTC completed the following:

·Acquired two memory care communities in Kansas totaling 120 units for an aggregate purchase price of $25.0 million, and added the properties to an existing master lease agreement at an initial incremental cash yield of 8%;

·Acquired a 60-unit memory care community in Kentucky for $14.3 million, and added the property to an existing master lease agreement at an initial incremental cash yield of 8%;

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·Originated a $12.3 million mortgage loan secured by a first lien mortgage encumbering two skilled nursing centers in Michigan totaling 216 beds. LTC funded $7.8 million at closing with a commitment to fund an additional $4.5 million for approved capital improvement projects. The capital improvement funding will be available for 36 months following the origination date. The loan has an initial term of four years and bears interest at 9.41%.  LTC has the option to extend the loan maturity to January 2045, and, upon extension, will make additional loan proceeds available to the borrower in an amount not to exceed $8.0 million funded upon the properties achieving certain predetermined coverage thresholds; and

·Locked rate under a shelf agreement with Prudential on $37.5 million of senior unsecured notes with a coupon of 4.15%. The notes will have an average 10-year life, scheduled principal payments and will mature in 2028. LTC anticipates selling the notes on or about May 20, 2016.

Guest Speakers to Participate on May 3 Conference Call

LTC will conduct a conference call on Tuesday, May 3, 2016, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time), to provide commentary on its performance and operating results for the quarter ended March 31, 2016. Joining LTC’s senior management on the call will be Dr. Craig Flashner, a Principal of Prestige Healthcare, and Mr. Mark Rockwell, a Principal of Anthem Memory Care.

Prestige Healthcare is a privately held operating company providing post-acute care, assisted living and independent living services and other rehabilitative and healthcare services at 70 facilities in seven states. Prestige is the operator of 22 properties in LTC’s portfolio, and represented approximately 15% of LTC’s annual income as of March 31, 2016.

Anthem Memory Care is a privately held company that develops and operates stand-alone, private-pay memory care communities. To date, Anthem has developed six communities and operates eight communities in four states, including seven owned by LTC, and has three projects in various stages of development, all with LTC. Anthem represented approximately 4% of LTC’s annual income as of March 31, 2016.

“There are currently certain prevailing areas of interest from analysts and investors throughout our industry. In post-acute care, questions revolve around RAC audits, bundled payments and managed care, to name just a few. In private-pay memory care, there are lingering concerns regarding overdevelopment, construction costs, rate growth and wage pressures,” said Wendy Simpson, LTC’s Chairman and Chief Executive Officer. “We are pleased to be able to include Dr. Flashner and Mr. Rockwell on our call, and believe there will be significant benefit from hearing from two great operating companies who are succeeding in today’s environment, while preparing for tomorrow’s. LTC is fortunate to have such a strong association with these gentlemen and their companies.”

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, go to LTC’s website at www.LTCreit.com 15 minutes before the call to download the necessary software. The call is expected to last approximately 90 minutes.

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An audio replay of the conference call will be available from May 3 through May 17, 2016 and may be accessed by dialing 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering conference number 10088908. Additionally, an audio archive will be available on LTC’s website on the “Presentations” page of the “Investor Information” section, which is under the “Investors” tab. LTC’s earnings release and supplemental information package for the current period will be available on its website on the “Press Releases” and “Presentations” pages, respectively, of the “Investor Information” section which is under the “Investors” tab.

About LTC

LTC is a self-administered real estate investment trust that primarily invests in seniors housing and health care properties through lease transactions, mortgage loans and other investments. At March 31, 2016, LTC had 222 investments located in 30 states comprising 104 assisted living communities, 99 skilled nursing centers, 7 range of care communities, 1 school, 1 behavioral health care hospital, 6 parcels of land under development and 4 parcels of land held-for-use. Assisted living communities, independent living communities, memory care communities and combinations thereof are included in the assisted living property type. Range of care communities consist of properties providing skilled nursing and any combination of assisted living, independent living and/or memory care services. For more information on LTC Properties, Inc., visit the Company’s website at www.LTCreit.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 LTC’s most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, and its 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 LTC 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.

(financial tables follow)

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LTC PROPERTIES, INC.

INCOME STATEMENT DATA

(amounts in thousands, except per share amounts)

	Three Months Ended
	March 31,
	2016			2015
Revenues:
Rental income	$	31,880		$	26,678
Interest income from mortgage loans	6,578			4,607
Interest and other income	146			195
Total revenues	38,604			31,480
Expenses:
Interest expense	6,000			3,766
Depreciation and amortization	8,561			6,779
Impairment on real estate for sale	—			—
Provision for doubtful accounts	84			3
Acquisition costs	90			48
General and administrative expenses	4,283			3,448
Total expenses	19,018			14,044
Operating income	19,586			17,436
Income from unconsolidated joint ventures	272			116
Net income	19,858			17,552
Income allocated to participating securities	(101		)	(123		)
Income allocated to preferred stockholders	—			(818		)
Net income available to common stockholders	$	19,757		$	16,611
Earnings per common share:
Basic	$	0.53		$	0.47
Diluted	$	0.53		$	0.47
Weighted average shares used to calculate earnings per common share:
Basic	37,446			35,277
Diluted	37,459			37,292
Dividends declared and paid per common share	$	0.54		$	0.51

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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 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 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, amortization of lease inducement, effective interest income and deferred income from unconsolidated joint ventures. 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. Effective interest method, as required by GAAP, is a technique for calculating the actual interest rate for the term of a mortgage loan based on the initial origination value.  Similar to the accounting methodology of straight-line rent, the actual interest rate is higher than the stated interest rate in the early years of the mortgage loan thus creating an effective interest receivable asset included in the interest receivable line item in our consolidated balance sheet and reduces down to zero when, at some point during the mortgage loan, the stated interest rate is higher than the actual interest rate.  By excluding the non-cash portion of rental income, interest income from mortgage loans and income from unconsolidated joint ventures, 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, capitalized interest and non-cash interest 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, AFFO, Normalized AFFO, FAD 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 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, AFFO and FAD

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

	Three Months Ended
	March 31,
	2016			2015
GAAP net income available to common stockholders	$	19,757		$	16,611
Add: Depreciation and amortization	8,561			6,779
NAREIT FFO attributable to common stockholders	28,318			23,390
Add: Non-recurring one-time items	—			—
Normalized FFO attributable to common stockholders	28,318			23,390
Less: Non-cash rental income	(2,317		)	(1,923		)
Less: Effective interest income from mortgage loans	(1,262		)	(551		)
Less: Deferred income from unconsolidated joint ventures	—			(77		)
Normalized adjusted FFO (AFFO)	24,739			20,839
Add: Non-cash compensation charges	990			982
Add: Non-cash interest related to earn-out liabilities	149			54
Less: Capitalized interest	(686		)	(147		)
Normalized funds available for distribution (FAD)	$	25,192		$	21,728
NAREIT Basic FFO attributable to common stockholders per share	$	0.76		$	0.66
NAREIT Diluted FFO attributable to common stockholders per share	$	0.76		$	0.65
NAREIT Diluted FFO attributable to common stockholders	$	28,419		$	24,331
Weighted average shares used to calculate NAREIT diluted FFO per share attributable to common stockholders	37,640			37,529
Basic normalized FFO attributable to common stockholders per share	$	0.76		$	0.66
Diluted normalized FFO attributable to common stockholders per share	$	0.76		$	0.65
Diluted normalized FFO attributable to common stockholders	$	28,419		$	24,331
Weighted average shares used to calculate diluted normalized FFO per share attributable to common stockholders	37,640			37,529
Basic normalized AFFO per share	$	0.66		$	0.59
Diluted normalized AFFO per share	$	0.66		$	0.58
Diluted normalized AFFO	$	24,840		$	21,780
Weighted average shares used to calculate diluted normalized AFFO per share	37,640			37,529
Basic normalized FAD per share	$	0.67		$	0.62
Diluted normalized FAD per share	$	0.67		$	0.60
Diluted normalized FAD	$	25,293		$	22,669
Weighted average shares used to calculate diluted normalized FAD per share	37,640			37,529

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LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share)

	March 31, 2016			December 31, 2015
ASSETS
Investments:
Land	$	108,867		$	106,841
Buildings and improvements	1,120,889			1,091,845
Accumulated depreciation and amortization	(259,237		)	(251,265		)
Real property investments, net	970,519			947,421
Mortgage loans receivable, net of loan loss reserve: 2016—$2,246; 2015—$2,190	223,053			217,529
Real estate investments, net	1,193,572			1,164,950
Investments in unconsolidated joint ventures	24,042			24,042
Investments, net	1,217,614			1,188,992
Other assets:
Cash and cash equivalents	24,280			12,942
Debt issue costs related to bank borrowing	2,605			2,865
Interest receivable	5,815			4,536
Straight-line rent receivable, net of allowance for doubtful accounts: 2016—$861 2015—$833	45,492			42,685
Prepaid expenses and other assets	21,020			21,443
Notes receivable	2,024			1,961
Total assets	$	1,318,850		$	1,275,424
LIABILITIES
Bank borrowings	$	161,000		$	120,500
Senior unsecured notes, net of debt issue costs: 2016—$1,044; 2015—$1,095	447,256			451,372
Accrued interest	2,852			3,974
Accrued incentives and earn-outs	12,572			12,722
Accrued expenses and other liabilities	22,480			27,654
Total liabilities	646,160			616,222
EQUITY
Stockholders’ equity:
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2016—37,915; 2015—37,548	379			375
Capital in excess of par value	772,677			758,676
Cumulative net income	948,186			928,328
Accumulated other comprehensive income	18			47
Cumulative distributions	(1,048,570		)	(1,028,224		)
Total equity	672,690			659,202
Total liabilities and equity	$	1,318,850		$	1,275,424

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EX-99.2

Exhibit 99.2

Supplemental Operating and Financial Data March 31, 2016 (Unaudited) Sunrise of Bexley Bexley, OH

Table of Contents Execution of Growth Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Portfolio Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Real Estate Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-11 Portfolio Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Portfolio Diversification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-16 Portfolio Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Enterprise Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Debt Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Financial Data Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-21 Income Statement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Funds from Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24-25 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-28 Forward-Looking Statements & Non-GAAP . . . . . . . . . . . . . . . . . . . . . 29 Page 2 Island Shores Neenah, WI

Leadership Page 3 Wendy Simpson Chairman Boyd Hendrickson Lead Independent Director James Pieczynski Nominating & Corporate Governance Committee Chairman Devra Shapiro Audit Committee Chairman Timothy Triche, MD Compensation Committee Chairman Board of Directors Wendy Simpson Chairman, Chief Executive Officer and President Pam Kessler Executive Vice President, CFO and Secretary Clint Malin Executive Vice President and Chief Investment Officer Brent Chappell Senior Vice President, Investment and Portfolio Management Cece Chikhale Senior Vice President, Controller and Treasurer Peter Lyew Vice President and Director of Taxes Doug Korey Senior Vice President of Business Development

Analyst Coverage Page 4 Any opinions, estimates, or forecasts regarding LTC’s performance made by the analysts listed above do not represent the opinions, estimates, and forecasts of LTC or its management. BMO Capital Markets Corp John Kim Canaccord Genuity . Paul Morgan Crowell, Weedon, & Co .. Doug Christopher J.J. B. Hilliard, W.L. Lyons, Inc John Roberts JMP Securities, LLC . Peter Martin KeyBanc Capital Markets, Inc Jordan Sadler Oxford Grand Mitsubishi – MUFG Karin Ford Mizuho Securities USA Inc .. Rich Anderson RBC Capital Markets Corporation .... Mike Carroll Stifel, Nicolaus & Company, Inc . Chad Vanacore Wells Fargo Securities, LLC .. Todd Stender

Execution of Growth Strategy Page 5 $1.1 Billion in Total Investments Underwritten Millions Oxford Grand $9 $68 $44 $12 $112 $94 $109 $245 $185 $25 $414 $67 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2010 2011 2012 2013 2014 2015 YTD 2016 Development/Expansions/Renovations Total Investment

Portfolio Overview (dollar amounts in thousands) Page 6 Includes contractual rental income and interest income from mortgage loans and excludes rental income from properties sold and interest income from loans that paid off during the twelve months ended March 31, 2016. Includes six development projects consisting of four MC communities with a total of 254 units, a 108-unit independent living community and an 89-unit combination ALF and MC community. Includes one school, four parcels of land held-for-use, and one behavioral health care hospital. Gross Real Property $1.2B Loans Receivable $0.2B 84.5% 15.5% Coldspring Transitional Care Center Coldpring KY Greenridge Place Westminster, CO Type of Property Gross Investments Skilled Nursing 99 $ 750,663 51.6% $ 58,336 $ 22,806 57.2% Assisted Living 104 596,029 41.0% 52,454 1,194 37.8% Range of Care 7 43,907 3.0% 5,880 - 4.1% Under Development (2) - 43,761 3.0% - - - Other (3) 2 20,695 1.4% 1,313 - 0.9% Total 212 $ 1,455,055 100.0% $ 117,983 $ 24,000 100.0% Trailing Twelve Months Ended March 31, 2016 # of Properties % of Investments Rental Income (1) Interest Income (1) % of Revenues

Real Estate Activities – Acquisitions & Loan Originations (dollar amounts in thousands) Page 7 Commitments may include capital improvement or development allowances for approved projects, incentive payments and contingent payments. See page 8 for Development activities. We purchased and equipped the property secured by a mortgage loan of $10,600 for a total of $13,946 by exercising our right under this loan. Represents year-to-date mortgage GAAP interest income. Represents an origination of a $20,000 30-year mortgage loan, funding $9,500 at closing and $5,500 during 1Q16. The $5,000 remaining commitment will be available for approved capital improvement projects. This loan bears interest at 9.41% for five years, thereafter interest received will escalate annually by 2.25%. Represents the origination of a $12,250 4-year mortgage loan, funding $7,750 at closing with the remaining commitment of $4,500 available for approved capital improvement projects. This loan bears interest at 9.41%. Acquisitions Loan Originations # of Properties # Beds/Units Location Operator Date of Construction Initial Cash Yield Purchase Price 2015 2/6 1 UDP (2) 56 units Corpus Christi, TX Thrive Senior Living 2015-2016 8.75% 7,195 $ 7,918 $ 2/19 1 SNF 106 beds Slinger, WI Fundamental 2014 10.30% 13,946 (3) 1,054 2/20 1 UDP (2) 89 units Murrells Inlet, SC Thrive Senior Living 2015-2016 8.75% 2,490 16,408 5/26 1 UDP (2) 66 units Tinley Park, IL Anthem Memory Care 2015-2016 9.25% 702 11,185 5/29 1 UDP (2) 108 units Wichita, KS Oxford Senior Living 2015-2016 7.43% 624 13,876 8/17 10 ALF 891 units WI and IL Senior Lifestyle 1991-2009 6.50% 142,000 10,500 9/23 1 UDP (2) 66 units Murrieta, CA Anthem Memory Care 2015-2016 9.00% 2,022 10,585 9/30 1 MC 60 units Jacksonville, FL Clarity Pointe 2015 8.00% 14,250 300 10/19 1 UDP (2) 66 units Glenview, IL Anthem Memory Care 2015-2017 9.00% 2,800 11,969 10/28 1 OTH 118 beds Las Vegas, NV Fundamental 1990/1994 8.50% 9,250 3,000 11/30 2 SNF 254 beds Fort Worth & Weatherford, TX Senior Care Centers 1998/1996 8.25% 23,000 500 21 1,402 units/478 beds 218,279 $ 87,295 $ 2016 2/1 1 SNF 126 beds Mansfield, TX Fundamental 2015 8.50% 16,000 $ - $ 4/21 1 MC 60 units Louisville, KY Clarity Pointe 2016 8.00% 14,250 300 4/29 2 MC 120 units Wichita & Overland Park, KS Anthem Memory Care 2011/2013 8.00% 25,000 1,300 4 180 units/126 beds 55,250 $ 1,600 $ Property Type Additional Commitment (1) Date # of Properties Property Type # Beds/ Units Location Operator Origination 2015 1/30 1 SNF 157 beds Grand Blanc, MI Prestige Healthcare 11,000 $ 306 $ 9,806 $ 288 $ 9.4% 6/29 15 SNF 2,058 beds Various cities in MI Prestige Healthcare 40,000 N/A 40,000 1,234 9.4% 10/30 2 SNF 273 beds Farmington & Howell, MI Prestige Healthcare 20,000 (2) - 15,000 343 9.4% 18 71,000 $ 306 $ 64,806 $ 1,865 $ 2016 4/29 2 SNF 216 beds East Lansing, MI Prestige Healthcare 12,250 $ (3) N/A 7,750 $ - $ 9.4% Date 2,488 beds Stated Interest Rate 2016 YTD Revenue (1) Development Funding Funded to Date

Real Estate Activities – De Novo Development (dollar amounts in thousands) Page 8 Includes purchase of land and existing improvements, if applicable, and development commitment. Remaining Commitment is calculated as follows: “Investment Commitment” less “Total Project Basis” plus “Total Capitalized Interest/Other”. Vineyard Place Murrieta, CA Vineyard Place Murrieta, CA # of Projects Property Type # Beds/ Units 2Q16 2015 Corpus Christi, TX 1 MC 8.75% 56 units 13,524 $ 1,115 $ 412 $ 12,193 $ 1,743 $ 3Q16 2015 Murrells Inlet, SC 1 ALF/MC 8.75% 89 units 16,535 1,614 482 8,006 9,011 3Q16 2015 Tinley Park, IL 1 MC 9.25% 66 units 11,887 2,869 114 7,615 4,386 4Q16 2015 Wichita, KS 1 ILF 7.43% 108 units 14,500 2,144 88 4,420 10,168 4Q16 2015 Murrieta, CA 1 MC 9.00% 66 units 12,606 2,985 127 7,796 4,937 5 385 units 69,052 10,727 1,223 40,030 30,245 1Q17 2015 Glenview, IL 1 MC 9.00% 66 units 14,769 171 99 3,731 11,137 Total 6 8.67% 451 units 83,821 $ 10,898 $ 1,322 $ 43,761 $ 41,382 $ Remaining Commitment (2) Total Project Basis Total Capitalized Interest/Other Estimated Rent/Interest Inception Date Commitment Year Location Approximate Initial Cash Yield Investment Commitment (1) 1Q16 Funding

Real Estate Activities – Expansions & Renovations (dollar amounts in thousands) Page 9 Rent increases upon each funding. Rent increases at each six month anniversary on amounts funded during that period. Commitments are part of the total loan commitment secured by 15 properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding. Interest payment increases upon each funding. In 2Q16, we amended the loan agreement to increase the construction loan amount to $5,500. In 2Q16, in conjunction with the loan origination, we committed to fund capital improvements of up to $4,500. Expansion Rendering Richmond, MI Own Loan Project Type # of Projects Property Type - (1) 2015 Expansion Mesa, AZ 1 SNF 5,000 $ - (1) 2,117 $ 3,357 $ 1,643 $ - (2) 2015 Renovation Las Vegas, NV 1 OTH 3,000 (2) - - 3,000 Total 2 8,000 $ 2,117 $ 3,357 $ 4,643 $ Project Type # of Projects Property Type - (3) 2013 Renovation Various cities in MI 15 SNF 12,000 $ (3) 860 $ 9,829 $ 2,171 $ - (3) 2015 Expansion Richmond, MI 1 SNF 10,000 (3) 178 661 9,339 - (3) 2015 Expansion Rochester Hills, MI 1 SNF 10,000 (3) 62 206 9,794 - (4) 2015 Renovation Farmington & Howell, MI 2 SNF 5,000 (4) - - 5,000 - (4)(5) 2016 Expansion Grand Blanc, MI 1 SNF 5,500 - - 5,500 - (4)(6) 2016 Renovation East Lansing, MI 2 SNF 4,500 - - 4,500 Total 22 47,000 $ 1,100 $ 10,696 $ 36,304 $ Investment Commitment Investment Commitment 1Q16 Funding Total Funded to Date 9.41% Remaining Commitment 1Q16 Funding Total Funded to Date Remaining Commitment 9.41% 9.41% Estimated Rent/Interest Inception Date Commitment Year Location 9.41% 9.41% Estimated Rent/Interest Inception Date Commitment Year Location Approximate Initial Cash Yield 9.00% 8.50% Approximate Initial Cash Yield 9.41%

Real Estate Activities – Joint Ventures and Lease-Up (dollar amounts in thousands) Page 10 Property was newly constructed and purchased in September 2015 following issuance of final certificate of occupancy and licensure. In 1Q15, we made a preferred equity investment in an unconsolidated joint venture. We have a fair-market value purchase option to acquire the properties owned by the joint venture beginning in 2018. Refer to the 10-K under Note 6. Investment in Unconsolidated Joint Ventures for more information. Currently, 5% is paid in cash and 10% is deferred. Represents a mezzanine loan for the development of a 99-unit ALF/MC/ILF with an initial interest rate of 10% escalating up to 15%. For accounting purposes, this loan is recorded as a joint venture. Joint Ventures Lease-Up # of Projects Property Type # Beds/ Units 2015 Various cities in AZ 4 ALF/MC/ILF 15.00% (1) 585 units 25,650 $ 20,143 $ 5,507 $ 2015 Ocala, FL 1 UDP 15.00% (2) 99 units 2,900 2,900 - 684 units 28,550 $ 23,043 $ 5,507 $ Investment to Date Remaining Investment Commitment Commitment Year Location Return Investment Commitment Date Opened Commitment Year Project Type Location # of Projects Property Type Approximate Initial Cash Yield # Beds/Units Nov-14 75% 2012 Development Cold Spring, KY 1 SNF 8.50% 143 beds 22,734 $ Feb-15 63% 2013 Development Westminster, CO 1 MC 9.25% 60 units 10,703 Sep-15 26% 2015 Acquisition (1) Jacksonville, FL 1 MC 8.00% 60 units 14,250 Feb-16 5% 2014 Development Burr Ridge, IL 1 MC 9.30% 66 units 11,808 4 59,495 $ 186 units/143 beds Occupancy at March 31, 2016 Total Funded/ Purchase Price

Real Estate Activities – Lease-Up History Page 11 Willowbrook Place Littleton, CO 60-unit Memory Care Willowbrook Place Littleton, CO Hillside Heights Amarillo, TX Highline Place Littleton, CO The Oxford Grand Wichita, KS Pavilion at Glacier Valley Slinger, WI Chelsea Place Aurora, CO Property Location Property Type Project Type # Beds/Units Date Opened Date Stabilized # of months to Stabilized Occupancy Hillside Heights Rehabilitation Suites Amarillo, TX SNF Redevelopment 120 beds Jul 2013 Aug 2013 1 Highline Place Littleton, CO MC Development 60 units Jul 2013 Sep 2013 2 The Oxford Grand Wichita, KS ALF/MC Development 77 units Oct 2013 Sep 2014 11 Willowbrook Place Littleton, CO MC Development 60 units Aug 2014 Dec 2015 16 Mustang Creek Estates Frisco, TX ALF/MC Development 80 units Oct 2014 Dec 2015 14 Chelsea Place Aurora, CO MC Development 48 units Dec 2014 Mar 2016 15 Pavilion at Glacier Valley Slinger, WI SNF Redevelopment 106 beds Feb 2014 Feb 2016 24

Portfolio Metrics Page 12 Includes owned portfolio and a mortgage loan secured by 15 skilled nursing centers in Michigan. Same Property Portfolio Statistics (1) Stabilized Property Portfolio (1) TTM Ended December 31, 2015 Greenridge Place Westminster, CO 31.1% 17.2% 51.7% Medicaid Medicare Private Pay Total Portfolio Payor Source 46.9% 26.3% 26.8% Medicaid Medicare Private Pay SNF Portfolio Payor Source Owned Properties 4Q15 3Q15 4Q15 3Q15 4Q15 3Q15 Assisted Living 86.5% 86.0% 1.63 1.64 1.40 1.41 Skilled Nursing 79.3% 79.5% 2.19 2.26 1.59 1.64 Range of Care 85.3% 85.8% 1.71 1.75 1.26 1.28 (1) Information is for the trailing twelve months through December 31, 2015 and September 30, 2015 and is from property level operator financial statements which are unaudited and have not been independently verified by us. Occupancy Normalized EBITDAR Coverage Normalized EBITDARM Coverage

Portfolio Diversification – Geography (as of March 31, 2016) Page 13 Skilled Nursing (99) Assisted Living (104) Other (2) Range of Care (7) Under Development (6) Land Held-For-Use (4) CA WA ME NV WY MI IL AR LA WV ND NY OR 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 KY 1 5 32 2 1 2 3 5 1 2 3 2 2 2 2 1 6 21 3 5 4 8 11 4 5 2 6 1 4 2 13 7 3 1 1 1 1 1 1 2 1 1 18 3 1 2 1 1 1 2 9 1 1 1 212 Properties 6 Development Projects 4 Land Parcels 30 States 35 Operators

Portfolio Diversification – Geography (as of March 31, 2016, dollar amounts in thousands) Page 14 Due to master leases with properties in multiple states, revenue by state is not available. The MSA rank by population as of July 1, 2015, as estimated by the United States Census Bureau. Approximately 66% of our properties are in the Top 100 MSAs Gross Portfolio by MSA (2) 48.8% 16.8% 20.2% 9.3% 4.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% MSAs 1-31 MSAs 32-100 MSAs > 100 Cities in Micro-SA Cities not in MSA or Micro-SA Population 20.2M – 2.1M MSAs 1 - 31 Population 2.1M – 0.5M MSAs 32 - 100 Population 0.5M – 55K MSAs >100 Population 218K – 14K Cities in a Micro-SA Population less than 100K Cities not in MSA State (1) # of Props SNF % ALF % ROC % UDP % OTH % % Texas 54 228,229 $ 30.4% 43,771 $ 7.3% 2,994 $ 6.8% 12,193 $ 27.9% - $ - 287,187 $ 19.7% Michigan 18 200,558 26.7% - - - - - - 943 4.6% 201,501 13.9% Wisconsin 10 13,946 1.9% 111,734 18.8% - - - - - - 125,680 8.6% Colorado 16 6,038 0.8% 106,879 17.9% 2,007 4.6% - - - - 114,924 7.9% Ohio 13 54,000 7.2% 44,957 7.5% - - - - - - 98,957 6.8% Florida 13 35,362 4.7% 45,856 7.7% - - - - - - 81,218 5.6% New Jersey 5 - - 61,664 10.4% - - - - 9,270 44.8% 70,934 4.9% California 4 22,130 2.9% 28,071 4.7% - - 7,796 17.8% - - 57,997 4.0% Illinois 2 - - 42,328 7.1% - - 11,346 25.9% - - 53,674 3.7% New Mexico 7 50,913 6.8% - - - - - - - - 50,913 3.5% All Others 70 139,487 18.6% 110,769 18.6% 38,906 88.6% 12,426 28.4% 10,482 50.6% 312,070 21.4% Total 212 750,663 $ 100.0% 596,029 $ 100.0% 43,907 $ 100.0% 43,761 $ 100.0% 20,695 $ 100.0% 1,455,055 $ 100.0% Gross Investment

Annual Income by Operator Portfolio Diversification – Operators (as of March 31, 2016, dollar amounts in thousands) Page 15 Includes annualized GAAP rent for leased properties and interest income from mortgage loans excluding rental income from properties sold and interest income from loans that paid off during the twelve months ended March 31, 2016. Prestige Healthcare 15.0% Senior Lifestyle 12.8% Brookdale 10.4% Senior Care 10.3% Preferred Care 7.6% Fundamental 5.4% Carespring 5.0% Genesis 5.0% Traditions Sr Mgmt 4.7% Juniper 4.6% All Others 19.2% Operators Annual Income (1) % Gross Investment % Prestige Healthcare 20 22,837 $ 15.0% 213,690 $ 14.7% Senior Lifestyle Corporation 27 19,509 12.8% 200,357 13.8% Brookdale Senior Living 37 15,801 10.4% 126,991 8.7% Senior Care Centers 11 15,756 10.3% 138,109 9.5% Preferred Care 30 11,613 7.6% 89,519 6.2% Fundamental 7 8,306 5.4% 74,652 5.1% Carespring Health Care Management 3 7,635 5.0% 77,546 5.3% Genesis Healthcare 8 7,614 5.0% 54,864 3.8% Traditions Senior Management 5 7,093 4.7% 64,610 4.4% Juniper Communities 6 7,018 4.6% 86,725 6.0% All Others 58 29,276 19.2% 327,992 22.5% 212 152,458 $ 100.0% 1,455,055 $ 100.0% # of Properties

Privately Held Privately Held NYSE: GEN Privately Held Privately Held SNF/ALF/MC Hospitals & Other Rehab SNF/ALF/ILF Transitional Care SNF/ALF Senior Living SNF/ALF/ILF ALF/ILF/MC/SNF 74 Properties 11 Properties More than 500 Properties 24 Properties 18 Properties 9 States 2 States 34 States 5 States 4 States Portfolio Diversification - Top Ten Operator Profiles (as of March 31, 2016) Page 16 Privately Held Privately Held NYSE: BKD Privately Held Privately Held SNF/ALF/ILF Other Rehab ALF/ILF/MC/SNF Short Term Stays ALF/ILF/MC Continuing Care SNF/ALF/ILF/MC Transitional Care & Rehab SNF/ALF/ILF Specialty Care 68 Properties 171 Properties Approx 1,123 Properties 108 Properties 112 Properties 7 States 27 States 47 States 2 States 12 States

Portfolio Maturity (as of March 31, 2016, dollar amounts in thousands) Page 17 Includes annualized GAAP rent for leased properties and interest income from mortgage loans excluding rental income from properties sold and interest income from loans that paid off during the twelve months ended March 31, 2016. (As a % of Total Annual Income)(1) 0.0% 1.0% 6.2% 1.0% 9.1% 12.1% 0.5% 1.6% 52.6% 0.3% 0.5% 0.6% 0.3% 0.0% 0.0% 0.0% 0.0% 14.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Leases Loans % of Total % of Total Annual Income (1) % of Total 2016 - - 423 1.8% 423 0.3% 2017 1,677 1.3% 692 2.9% 2,369 1.5% 2018 9,452 7.4% 904 3.8% 10,356 6.8% 2019 1,571 1.2% 379 1.5% 1,950 1.3% 2020 13,826 10.8% - - 13,826 9.1% 2021 18,438 14.3% - - 18,438 12.1% 2022 771 0.6% - - 771 0.5% 2023 2,539 2.0% - - 2,539 1.6% 80,184 62.4% 21,602 90.0% 101,786 66.8% Total 128,458 $ 100.0% 24,000 $ 100.0% 152,458 $ 100.0% Year Rental Income (1) Interest Income (1) Thereafter

Enterprise Value (amounts in thousands, except per share amounts and number of shares) Page 18 Capitalization Total Debt Common Stock Total commitment under our unsecured revolving line of credit is $600,000 which matures in October 2018, with a one-year extension option. Subsequent to March 31, 2016, we borrowed an additional $37,000 under our unsecured revolving line of credit. Accordingly, we have $198,000 outstanding under our unsecured revolving line of credit with $402,000 remaining for borrowing. Represents outstanding balance of $448,300, net of debt issue costs of $1,044. Rate includes amortization of debt issue cost. Closing price of our common stock as reported by the NYSE on March 31, 2016. See page 21 for reconciliation of annualized normalized EBITDA for the twelve months ended March 31, 2016. Sunrise of Worthington Worthington, OH 73.8% 26.2% Capitalization Bank borrowings - weighted average rate 2.1% (1) 161,000 $ Senior unsecured notes -weighted average rate 4.6% (2) 447,256 Total debt - weighted average rate 4.0% 608,256 26.2% 3/31/16 No. of shares Common stock 37,915,120 45.24 $ (3) 1,715,280 73.8% 2,323,536 $ 100% Less: Cash and cash equivalents (24,280) 2,299,256 $ Debt to Enterprise Value 26.5% Debt to Annualized Normalized EBITDA (4) 4.4x Enterprise Value At March 31, 2016 Debt Equity Closing Price Total Market Value

Debt Maturity (as of March 31, 2016, dollar amounts in thousands) Page 19 Debt Structure Unsecured Line Senior Unsecured Notes Total commitment under our unsecured revolving line of credit is $600,000 which matures in October 2018, with a one-year extension option. Subsequent to March 31, 2016, we borrowed an additional $37,000 under our unsecured revolving line of credit. Accordingly, we have $198,000 outstanding under our unsecured revolving line of credit with $402,000 remaining for borrowing. Reflects scheduled principal payments. Excludes debt issue costs which are included in the balance sheet amounts shown on page 18. $0 $0 $161,000 $0 $0 $0 $0 $0 $22,500 $31,167 $34,167 $32,666 $37,160 $37,160 $38,160 $215,320 $- $50,000 $100,000 $150,000 $200,000 $250,000 2016 2017 2018 2019 2020 2021 2022 Thereafter Unsecured Line Senior Unsecured Notes 73.6% 26.4% $ - $ 22,500 $ 22,500 3.7% - 31,167 31,167 5.1% 161,000 34,167 195,167 32.0% - 32,666 32,666 5.4% - 37,160 37,160 6.1% - 37,160 37,160 6.1% - 38,160 38,160 6.3% - 215,320 215,320 35.3% $ 161,000 $ 448,300 $ 609,300 (3) 100.0% Year Unsecured Line of Credit (1) Total Senior Unsecured Notes (2) % of Total 2016 2017 2018 2019 2020 2021 2022 Thereafter Total

Financial Data Summary (dollar amounts in thousands) Page 20 Represents outstanding balance of gross bank borrowings and senior unsecured notes, net of debt issue costs. Balance Sheet, Leverage Ratios and Coverage Ratios 1Q16 4Q15 4Q14 4Q13 Balance Sheet Gross real estate assets $1,455,055 $1,418,405 $1,117,167 $1,104,732 Net real estate assets 1,193,572 1,164,950 892,179 884,361 Gross asset value 1,580,333 1,528,879 1,189,758 1,150,676 Total debt (1) 608,256 571,872 280,584 277,730 Total liabilities 646,160 616,222 304,649 297,867 Preferred stock - - 38,500 38,500 Total equity 672,690 659,202 660,121 632,438 Leverage Ratios Debt to gross asset value 38.5% 37.4% 23.6% 24.1% Debt & preferred stock to gross asset value 38.5% 37.4% 26.8% 27.5% Debt to total enterprise value 26.5% 26.2% 15.4% 18.0% Debt & preferred stock to total enterprise value 26.5% 26.2% 17.5% 20.5% Coverage Ratios Debt to annualized normalized EBITDA 4.4x 4.3x 2.3x 2.9x Annualized normalized EBITDA / interest incurred 5.1x 5.7x 7.6x 7.9x Annualized normalized EBITDA / fixed charges 5.1x 5.7x 6.3x 6.2x Annualized

Financial Data Summary (dollar amounts in thousands) Page 21 Reconciliation of Annualized Normalized EBITDA and Fixed Charges Non-Cash Revenue Components For leases and loans in place at March 31, 2016, assuming no renewals, modification or replacement, and no new investments are added to our portfolio, except for announced acquisitions, as previously discussed on page 6. In 4Q15, we agreed to sell a 48-unit assisted living community, which was sold in 1Q16, and we recorded an impairment charge of $2,250 to write the property down to the sale price. Gain on sale of real estate and impairment on real estate for sale were not annualized. Represents gain on sale of 16 properties to Enlivant. Gain on sale of real estate was not annualized. 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. Non-recurring one-time items were not annualized. 2,835 $ 3,446 $ 2,784 $ 2,323 $ 1,559 $ (518) (439) (441) (440) (441) 1,261 1,294 1,291 1,292 1,285 3,578 $ 4,301 $ 3,634 $ 3,175 $ 2,403 $ 1Q17 (1) Straight-line rent Amort of lease inducement Net Effective Interest 1Q16 2Q16 (1) 3Q16 (1) 4Q16 (1) 1Q16 4Q15 4Q14 4Q13 Net income 79,432 $ 76,808 $ 84,000 $ 58,600 $ Less: Gain on sale of real estate, net - (586) (1) (3,819) (2) - Add: Impairment on real estate for sale - 2,250 (1) - - Add: Interest expense 24,000 22,324 14,732 11,408 Add: Depreciation and amortization 34,244 33,240 26,376 24,948 Adjusted EBITDA 137,676 134,036 121,289 94,956 Add back/(deduct): Non-recurring one-time items - - - 1,980 (3) Normalized EBITDA 137,676 $ 134,036 $ 121,289 $ 96,936 $ Interest expense: 24,000 $ 22,324 $ 14,732 $ 11,408 $ Add: Capitalized interest 2,744 1,384 1,160 856 Interest incurred 26,744 23,708 15,892 12,264 Interest incurred 26,744 23,708 15,892 12,264 Preferred stock dividend - - 3,276 3,276 Fixed Charges 26,744 $ 23,708 $ 19,168 $ 15,540 $ Annualized

Income Statement Data (amounts in thousands, except per share amounts) Page 22 Bella Vista Oshkosh, WI 2016 2015 Revenues Rental income 31,880 $ 26,678 $ Interest income from mortgage loans 6,578 4,607 Interest and other income 146 195 Total revenues 38,604 31,480 Expenses Interest expense 6,000 3,766 Depreciation and amortization 8,561 6,779 Provision for doubtful accounts 84 3 Acquisition costs 90 48 General and administrative expenses 4,283 3,448 Total expenses 19,018 14,044 Operating Income 19,586 17,436 Income from unconsolidated joint ventures 272 116 Net Income 19,858 17,552 Income allocated to participating securities (101) (123) Income allocated to preferred stockholders - (818) Net income available to common stockholders 19,757 $ 16,611 $ Earnings per common share: Basic $0.53 $0.47 Diluted $0.53 $0.47 Weighted average shares used to calculate earnings per common share: Basic 37,446 35,277 Diluted 37,459 37,292 Dividends declared and paid per common share $0.54 $0.51 (unaudited) Three Months Ended March 31,

Consolidated Balance Sheets (amounts in thousands, except per share amounts) Page 23 (unaudited) (audited) (unaudited) (audited) ASSETS Investments: LIABILITIES Land 108,867 $ 106,841 $ Buildings and improvements 1,120,889 1,091,845 Bank borrowings 161,000 $ 120,500 $ Accumulated depreciation and amortization (259,237) (251,265) Senior unsecured notes, net of debt issue Real property investments, net 970,519 947,421 costs: 2016 - $1,044; 2015 - $1,095 447,256 451,372 Mortgage loans receivable, net of loan loss Accrued interest 2,852 3,974 reserves: 2016 - $2,246; 2015 - $2,190 223,053 217,529 Accrued incentives and earn-outs 12,572 12,722 Real estate investments, net 1,193,572 1,164,950 Accrued expenses and other liabilities 22,480 27,654 Investment in unconsolidated joint ventures 24,042 24,042 Total liabilities 646,160 616,222 Investments, net 1,217,614 1,188,992 Other assets: EQUITY Cash and cash equivalents 24,280 12,942 Stockholders' equity: Debt issue costs related to bank borrowing 2,605 2,865 Common stock (1) 379 375 Interest receivable 5,815 4,536 Capital in excess of par value 772,677 758,676 Straight-line rent receivable, net of allowance for Cumulative net income 948,186 928,328 doubtful accounts: 2016 - $861; 2015 - $833 45,492 42,685 Accumulated other comprehensive income 18 47 Prepaid expenses and other assets 21,020 21,443 Cumulative distributions (1,048,570) (1,028,224) Notes receivable 2,024 1,961 Total equity 672,690 659,202 Total assets 1,318,850 $ 1,275,424 $ Total liabilities and equity 1,318,850 $ 1,275,424 $ (1) Common stock $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2016 - 37,915; 2015 - 37,548 March 31, 2016 March 31, 2016 December 31, 2015 December 31, 2015

Funds from Operations (unaudited, amounts in thousands, except per share amounts) Page 24 Reconciliation of FFO, AFFO, and FAD 2016 2015 GAAP net income available to common stockholders 19,757 $ 16,611 $ Add: Depreciation and amortization 8,561 6,779 NAREIT FFO attributable to common stockholders 28,318 23,390 Add: Non-recurring one-time items - - Normalized FFO attributable to common stockholders 28,318 23,390 Less: Non-cash rental income (2,317) (1,923) Less: Effective interest income from mortgage loans (1,262) (551) Less: Deferred income from unconsolidated joint ventures - (77) Normalized adjusted FFO (AFFO) 24,739 20,839 Add: Non-cash compensation charges 990 982 Add: Non-cash interest related to contingent liabilities 149 54 Less: Capitalized interest (686) (147) Normalized funds available for distribution (FAD) 25,192 $ 21,728 $ $0.76 $0.65 $0.76 $0.65 $0.66 $0.58 $0.67 $0.60 Diluted normalized FFO attributable to common stockholders per share Diluted normalized AFFO per share Diluted normalized FAD per share March 31, Three Months Ended NAREIT Diluted FFO attributable to common stockholders per share

Funds from Operations (unaudited, amounts in thousands, except per share amounts) Page 25 Reconciliation of FFO Per Share Pavilion at Glacier Valley Slinger, WI Pavilion at Glacier Valley Slinger, WI For the three months ended March 31, 2015 2015 2015 Normalized FFO/AFFO/FAD attributable to common stockholders 28,318 $ 23,390 $ 24,739 $ 20,839 $ 25,192 $ 21,728 $ Effect of dilutive securities: Participating securities 101 123 101 123 101 123 Series C cumulative preferred - 818 - 818 - 818 Diluted normalized FFO/AFFO/FAD assuming conversion 28,419 $ 24,331 $ 24,840 $ 21,780 $ 25,293 $ 22,669 $ 37,446 35,277 37,446 35,277 37,446 35,277 Effect of dilutive securities: Stock options 13 15 13 15 13 15 Participating securities 181 237 181 237 181 237 Series C cumulative preferred - 2,000 - 2,000 - 2,000 Shares for diluted normalized FFO/AFFO/FAD per share 37,640 37,529 37,640 37,529 37,640 37,529 0.76 $ 0.65 $ 0.66 $ 0.58 $ 0.67 $ 0.60 $ Diluted normalized FFO/AFFO/FAD per share 2016 FFO AFFO FAD 2016 2016 Shares for basic FFO/AFFO/FAD per share

Glossary Page 26 Adjusted Funds From Operations (“AFFO”): FFO excluding the effects of straight - line rent , amortization of lease inducement , effective interest income and deferred income from unconsolidated joint ventures. Assisted Living Communities (“ALF”) : The ALF portfolio consists of assisted living, independent living, and/or memory care c ommunities . (See Independent Living and Memory Care) Assisted living communities are s enior housing properties serving elderly persons who require assistance with activities of daily living, but do not require the constant supervision skilled nursing centers provide. Services are usually available 24 hours a day and include personal supervision and a ssistance with eating , bathing, grooming and administering medication. The communities 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 . EBITDA: Earnings before interest, taxes, depreciation and amortization . Funds Available for Distribution (“FAD”): A FFO excluding the effects of n on - cash compensation charges , capitalized interest and non - cash interest 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 accordan ce 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 sum of the p urchase p rice and transaction costs. GAAP Rent: Total rent we will receive as a fixed amount over the initial term of the lease and recognize d evenly over that term . 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: The carrying amount of total assets after adding back accumulated depreciation and loan loss reserves , as reported in the company’s consolidated financial statements . Gross Investment: Original price paid for an asset plus capital improvements funded by LTC , without any deprec i ation deductions. Gross Investment is commonly referred to as undepreciated book value. Independent Living Communities (“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, fit ness 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.

Glossary (cont.) Page 27 Licensed Beds/Units: The number of beds and/or units tha t an operator is authorized to operate at senior housing and long - term care propert ies . Licensed b eds and/or u nits may differ from the number of beds and/or units in service at any given time. Memory Care Communities (“MC”): Senior housing properties offering specialized options for seniors with Alzheimer’s disease and other forms of dementia. These communities offer dedicated care and specialized programming for various conditions relating to memory loss in a secured environment that is typically smal ler in scale and more residential in nature than traditional assisted living communities . These communities 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. 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 Federa l statistics. A micro area contains an urban core of at least 10,000 (but less than 50,000) population. Net Real Estate Assets: G ross real estate investment less accumulated depreciation. Net Real Estate Asset is commonly referred to as Net Book Value (“NBV”). Non - cash Rental I ncome: Straight - line rental income and amortization of lease inducement. Non - cash C ompens ation C harges: Vesting expense relating to stock option s and restricted stock. Normalized AFFO: A FFO adjusted for non - recurring, infrequent or unusual items. 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. Manag ement 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: FAD adjusted for non - recurring, infrequent or unusual items . Normalized FFO: FFO adjusted for non - recurring, infrequent or unusual items. Occupancy: Th e 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 gi ven time. Operator Financial Statements: Property level operator financial statements which are unaudited and have not been independently verified by us.

Glossary (cont.) Page 28 Glossary Payor Source : LTC revenue by operator underlying payor source for the period 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 c alculated from property level operator fina ncial statements which 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 measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets; it is not a forced transaction (for example, a forced liquidation or distress sale). Range of Care (“ROC”): Range of care communities 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 . Same Property Portfolio (“SPP”): S ame property statistics allow for the comparative evaluation of performance across a consistent population of LTC’s leased property portfolio. Our SPP is comprised of s tabilized properties owned and operated throughout the duration of the quarter - over - quarter comparison periods presented (excluding assets sold and assets held - for - sale). Accordingly, a leased property must be owned and stabilized for a mi nimum of 1 5 months if it is an acquired property, or 27 months if it is a development project, to be included in our SSP. School: An institution for educatin g students which include s a charter school. Charter schools provide an alternative to the traditional public school and are generally autonomous entities authorized by the state or locality to conduct operations independent from the surrounding public school district. Laws vary by s tate, 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 s et forth in the charter. Upon receipt of a charter, schools receive an annuity from the state for each student enrolled. Skilled Nursing Centers (“SNF”): Skilled nursing centers pr ovid e 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 occupational, speech, physical, respiratory and IV therapies, as well as sub - acute care services which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. Stabilized: Properties are generally considered sta bilized upon the earlier of achieving certain occupancy thresholds (e.g. 80% for SNF s and 90% for ALFs) and, as applicable, 12 months from the date of acquisition or, in the event of a de novo development, redevelopment , major renovations or addition, 24 months from the date the property is first placed in or returned to servi ce. Under Development Properties (“UDP”): Development project s to construct senior housing communities and/or skilled nursing centers.

LTC Properties, Inc. Company Founded in 1992, LTC Properties, Inc. ("LTC") is a self-administered real estate investment trust that primarily invests in senior housing and health care properties through facility lease transactions, mortgage loans, and other investments. Our primary objectives are to create, sustain and enhance stockholder equity value and provide current income for distribution to stockholders through real estate investments in senior housing and health care properties managed by experienced operators. Our primary senior housing and health care property types include skilled nursing centers (or SNF), assisted living communities (or ALF), independent living communities (or ILF), memory care communities (or MC), and combinations thereof. 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, property type and form of investment. For more information on LTC, visit the Company’s website at www.LTCreit.com. 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, 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, 2015 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 adjusted EBITDA, normalized EBITDA, FFO, normalized FFO, normalized AFFO, normalized FAD, 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. Page 29