8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20459

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report: February 22, 2017

(Date of earliest event reported)

LTC PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)

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

2829 Townsgate Road, Suite 350

Westlake Village, CA  91361

(Address of principal executive offices)

(805) 981-8655

(Registrant’s telephone number, including area code)

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

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

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

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

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

Item 2.02. — Results of Operations and Financial Condition

On February 22, 2017, LTC Properties, Inc. announced the operating results for the three and twelve months ended December 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

99.1	Press Release issued February 22, 2017.
99.2	LTC Properties, Inc. Supplemental Information Package for the period ending December 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: February 22, 2017	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 FOURTH QUARTER RESULTS

AND ANNOUNCES NEW INVESTMENTS

WESTLAKE VILLAGE, CALIFORNIA, February 22, 2017— 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 fourth quarter ended December 31, 2016.

Net income available to common stockholders was $20.6 million, or $0.53 per diluted share, for the 2016 fourth quarter, compared with $17.8 million, or $0.48 per diluted share, for the same period in 2015. The increase in net income available to common stockholders was primarily due to higher revenues from investing activities, and the net reduction in impairment charges, partially offset by higher interest expense resulting from the sale of senior unsecured notes in 2016, gain on sale recognized in 2015, as well as additional general and administrative expenditures related to increased investment activities.

Funds from Operations (“FFO”) increased 10.2% to $30.7 million for the 2016 fourth quarter, up from $27.8 million for the comparable 2015 period. FFO per diluted common share was $0.78 and $0.74 for the quarters ended December 31, 2016 and 2015, respectively, which represents a 5.4% per share increase. The increase in FFO was primarily due to higher investing activities, partially offset by higher interest expense resulting from the sale of senior unsecured notes in 2016, as well as additional general and administrative expenditures related to increased investment activities.

LTC completed the following transactions during the fourth quarter of 2016:

·Purchased a parcel of land in Illinois for $1.6 million and entered into a development commitment to construct a 66-unit memory care community. The commitment totals $14.5 million, including the land purchase;

·Completed construction and opened a 108-unit independent living community in Kansas;

·Purchased a $12.5 million mezzanine loan on a portfolio of 64 skilled nursing centers. The mezzanine loan has a five-year term and a rate of LIBOR plus 11.75%; and

·Entered into a $3.4 million mezzanine loan commitment for the development of a 127-unit senior living community in Florida, which will provide a combination of independent, assisted and memory care services. The mezzanine loan has a seven-year term and a 15% return, a portion of which is paid in cash, subject to minimum payment requirements, and the remaining unpaid portion is deferred and subsequently paid to us at times set forth in the loan agreement.

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

·Amended its shelf agreement with Prudential Investment Management, Inc. (“Prudential”) to increase the shelf commitments to $337.5 million, of which $36.7 million is currently available;

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·Sold 15-year senior unsecured notes in the aggregate amount of $100.0 million to a group of institutional investors, which included Prudential, in a private placement transaction. The notes bear interest at an annual fixed rate of 4.5%, have scheduled principal payments and mature on February 16, 2032. The proceeds were used to repay the outstanding balance of the unsecured line of credit;

·Sold 312,881 shares of its common stock for $14.6 million in net proceeds under its equity distribution agreement; and

·Entered into a contingent agreement to sell a property in Texas, and as a result, recorded a $0.8 million impairment charge during the fourth quarter of 2016.  The property’s net book value, after recording the impairment, is $1.2 million and it generated revenue of approximately $0.2 million in 2016.

Conference Call Information

LTC will conduct a conference call on Thursday, February 23, 2017, 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 December 31, 2016. 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.

An audio replay of the conference call will be available from February 23 through March 9, 2017 and may be accessed by dialing 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering conference number 10099552. 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 primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including mezzanine lending. At December 31, 2016, LTC had 219 investments located in 30 states comprising 112 assisted living communities, 92 skilled nursing centers, 7 range of care communities, 1 behavioral health care hospital, 3 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.

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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 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.

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
	(unaudited)						(audited)
Revenues:
Rental income	$	34,822		$	30,755		$	133,527		$	113,080
Interest income from mortgage loans	6,974			6,342			27,321			22,119
Interest and other income	345			296			735			1,004
Total revenues	42,141			37,393			161,583			136,203
Expenses:
Interest expense	6,856			5,581			26,442			17,497
Depreciation and amortization	9,309			8,310			35,932			29,431
Impairment on real estate for sale	766			2,250			766			2,250
Provision for doubtful accounts	212			156			457			619
Transaction costs	83			112			179			744
General and administrative expenses	4,548			3,892			17,412			14,986
Total expenses	21,774			20,301			81,188			65,527
Operating income	20,367			17,092			80,395			70,676
Income from unconsolidated joint ventures	299			276			1,138			1,819
Gain on sale of real estate, net	—			586			3,582			586
Net income	20,666			17,954			85,115			73,081
Income allocated to participating securities	(89		)	(114		)	(385		)	(484		)
Income allocated to preferred stockholders	—			—			—			(2,454		)
Net income available to common stockholders	$	20,577		$	17,840		$	84,730		$	70,143
Earnings per common share:
Basic	$	0.53		$	0.49		$	2.21		$	1.97
Diluted	$	0.53		$	0.48		$	2.21		$	1.94
Weighted average shares used to calculate earnings per common share:
Basic	39,065			36,433			38,388			35,590
Diluted	39,260			37,358			38,597			37,329
Dividends declared and paid per common share	$	0.57		$	0.54		$	2.19		$	2.07

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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						Twelve Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
GAAP net income available to common stockholders	$	20,577		$	17,840		$	84,730		$	70,143
Add: Depreciation and amortization	9,309			8,310			35,932			29,431
Add: Impairment on real estate for sale	766			2,250			766			2,250
Less: Gain on sale of real estate, net	—			(586		)	(3,582		)	(586		)
NAREIT FFO attributable to common stockholders	30,652			27,814			117,846			101,238
Add: Non-recurring one-time items	—			—			—			937		(1)
Normalized FFO attributable to common stockholders	30,652			27,814			117,846			102,175
Less: Non-cash rental income	(4,777		)	(2,559		)	(11,532		)	(8,456		)
Less: Effective interest income from mortgage loans	(1,349		)	(1,232		)	(5,256		)	(3,912		)
Less: Deferred income from unconsolidated joint ventures	—			—			—			(1,000		)
Normalized adjusted FFO (AFFO)	24,526			24,023			101,058			88,807
Add: Non-cash compensation charges	1,131			913			4,280			4,006
Add: Non-cash interest related to earn-out liabilities	146			204			684			409
Less: Capitalized interest	(215		)	(346		)	(1,408		)	(827		)
Normalized funds available for distribution (FAD)	$	25,588		$	24,794		$	104,614		$	92,395

(1)  Represents $537 of acquisition costs related to the 10-property senior housing portfolio acquired and a $400 provision for loan loss reserve related to additional loan proceeds funded under an existing mortgage loan.

NAREIT Basic FFO attributable to common stockholders per share	$	0.78	$	0.76	$	3.07	$	2.84
NAREIT Diluted FFO attributable to common stockholders per share	$	0.78	$	0.74	$	3.06	$	2.77
NAREIT Diluted FFO attributable to common stockholders	$	30,741	$	27,928	$	118,231	$	104,176
Weighted average shares used to calculate NAREIT diluted FFO per share attributable to common stockholders	39,260		37,577		38,597		37,563
Diluted normalized FFO attributable to common stockholders	$	30,741	$	27,928	$	118,231	$	105,113
Weighted average shares used to calculate diluted normalized FFO per share attributable to common stockholders	39,260		37,577		38,597		37,563
Diluted normalized AFFO	$	24,615	$	24,137	$	101,443	$	91,745
Weighted average shares used to calculate diluted normalized AFFO per share	39,260		37,577		38,597		37,563
Diluted normalized FAD	$	25,667	$	24,908	$	104,999	$	95,333
Weighted average shares used to calculate diluted normalized FAD per share	39,260		37,577		38,597		37,563

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LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except per share)

	December 31, 2016			December 31, 2015
ASSETS
Investments:
Land	$	116,096		$	106,841
Buildings and improvements	1,185,467			1,091,845
Accumulated depreciation and amortization	(275,861		)	(251,265		)
Real property investments, net	1,025,702			947,421
Mortgage loans receivable, net of loan loss reserve: 2016—$2,315; 2015—$2,190	229,801			217,529
Real estate investments, net	1,255,503			1,164,950
Notes receivable, net of loan loss reserve: 2016—$166; 2015—$0	16,427			1,961
Investments in unconsolidated joint ventures	25,221			24,042
Investments, net	1,297,151			1,190,953
Other assets:
Cash and cash equivalents	7,991			12,942
Debt issue costs related to bank borrowings	1,847			2,865
Interest receivable	9,683			4,536
Straight-line rent receivable, net of allowance for doubtful accounts: 2016—$960; 2015—$833	55,276			42,685
Prepaid expenses and other assets	22,948			21,443
Total assets	$	1,394,896		$	1,275,424
LIABILITIES
Bank borrowings	$	107,100		$	120,500
Senior unsecured notes, net of debt issue costs: 2016—$1,009; 2015—$1,095	502,291			451,372
Accrued interest	4,675			3,974
Accrued incentives and earn-outs	12,229			12,722
Accrued expenses and other liabilities	28,553			27,654
Total liabilities	654,848			616,222
EQUITY
Stockholders’ equity:
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2016—39,221; 2015—37,548	392			375
Capital in excess of par value	839,005			758,676
Cumulative net income	1,013,443			928,328
Accumulated other comprehensive income	—			47
Cumulative distributions	(1,112,792		)	(1,028,224		)
Total equity	740,048			659,202
Total liabilities and equity	$	1,394,896		$	1,275,424

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EX-99.2

Exhibit 99.2

Supplemental Operating and Financial Data December 31, 2016 (Unaudited) Thrive at Prince Creek Murrells Inlet, SC

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 Proforma Enterprise Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Debt Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Proforma Debt Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Financial Data Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-23 Income Statement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Funds from Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26-27 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-30 Forward-Looking Statements & Non-GAAP . . . . . . . . . . . . . . . . . . . . . 31 Page 2 Village at Athens Athens, GA Harvester Place Burr Ridge, IL

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 44 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 Cantor Fitzgerald . Joseph France Crowell, Weedon, & Co ... .. D.A. Davidson J.J. B. Hilliard, W.L. Lyons, Inc John Roberts JMP Securities, LLC . Peter Martin KeyBanc Capital Markets, Inc . Jordan Sadler 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 Thrive at Prince Creek Murrells Inlet, SC

Execution of Growth Strategy Page 55 $1.2 Billion in Total Investments Underwritten Millions Oxford Grand $9 $68 $44 $12 $112 $94 $109 $245 $185 $25 $414 $142 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2010 2011 2012 2013 2014 2015 2016 Development/Expansions/Renovations Total Investment $39

Page 6 Gross Real Property $1.3B Loans Receivable $0.2B 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 December 31, 2016. Includes three development projects consisting of two memory care communities with a total of 132 units and a skilled nursing center with 143 beds. Includes one behavioral health care hospital and four parcels of land. Portfolio Overview (dollar amounts in thousands) Oxford Grand Wichita, KS 84.9% 15.1% Type of Property Gross Investments Skilled Nursing 92 $ 753,328 49.2% $ 61,429 $ 25,430 54.6% Assisted Living 112 711,645 46.4% 64,380 1,171 41.2% Range of Care 7 43,140 2.8% 5,774 - 3.6% Under Development (2) - 14,142 0.9% - - - Other (3) 1 11,424 0.7% 865 111 0.6% Total 212 $ 1,533,679 100.0% $ 132,448 $ 26,712 100.0% Trailing Twelve Months Ended December 31, 2016 # of Properties % of Investments Rental Income (1) Interest Income (1) % of Revenues

Real Estate Activities – Acquisitions (dollar amounts in thousands) Page 7 Commitments may include capital improvement or development allowances for approved projects but excludes incentive payments and contingent payments. For a comprehensive list of our commitments, see our Annual Report on Form 10-K. Construction completed in 2016. See page 9 for development activities. Represents purchase of land and initial improvements. Acquisitions # 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 $ 5,329 $ 2/19 1 SNF 106 beds Slinger, WI Fundamental 2014 10.30% 13,946 - 2/20 1 UDP (2) 89 units Murrells Inlet, SC Thrive Senior Living 2015-2016 8.75% 2,490 14,045 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% 142,000 500 9/23 1 UDP (2) 66 units Murrieta, CA Anthem Memory Care 2015-2016 9.00% 2,022 10,584 9/30 1 MC 60 units Jacksonville, FL Clarity Pointe 2015 8.00% 14,250 - 10/19 1 UDP (3) 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 $ 70,988 $ 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 - 4/29 2 MC 120 units Wichita & Overland Park, KS Anthem Memory Care 2011/2013 8.00% 25,000 750 6/14 1 ALF/MC 70 units Athens, GA Thrive Senior Living 2016 8.00% 14,300 - 9/30 1 UDP (3)(4) 143 beds Union, KY Carespring 2016-2018 8.50% 5,300 19,025 10/28 1 UDP (3) 66 units Oak Lawn, IL Anthem Memory Care 2016-2018 9.00% 1,591 12,878 7 316 units/269 beds 76,441 $ 32,653 $ Date Property Type Additional Commitment (1)

Real Estate Activities – Loan Originations and Joint Ventures (dollar amounts in thousands) Page 8 Represents year-to-date mortgage GAAP interest income. Initially, we originated $11,000 which includes a $1,500 construction loan. In 2Q16, we increased the construction loan amount to $5,500. See page 10 for funding activities. Represents the origination of a 4-year mortgage loan for $12,250, funding $7,750 at closing with the remaining commitment of $4,500 available for approved capital improvement projects. Additionally, we committed $8,000 to be funded upon the properties achieving certain predetermined coverage thresholds. Represents a mezzanine loan secured by a second mortgage on two skilled nursing centers in Oregon. Represents a mezzanine loan on a portfolio of 64 skilled nursing centers located in eight states. Loan Originations Currently, 5% is paid in cash and 10% is deferred. Interest during construction was accrued. Subsequent to December 31, 2016, certificate of occupancy and licensure were issued. Commencing February 1, 2017, 10% is paid in cash and 5% is deferred. Conditions of funding have not been satisfied. Once funded, 10% will be paid in cash and 5% will be deferred. Joint Ventures # of Projects Property Type 2015 Peoria & Yuma, AZ 4 ALF/MC/ILF 15.00% (1) 585 units 25,650 $ 21,913 $ 3,737 $ 2015 Ocala, FL 1 UDP-ALF/IL/MC 15.00% (2) 99 units 2,900 2,900 - 2016 Fort Myers, FL 1 UDP-ALF/MC 15.00% (3) 127 units 3,400 - 3,400 811 units 31,950 $ 24,813 $ 7,137 $ Investment to Date Remaining Investment Commitment Commitment Year Location Return Investment Commitment # Beds/ Units # of Properties Property Type # Beds/ Units Location Loan Type Maturity Date Operator Origination 2015 1/30 1 SNF 157 beds Grand Blanc, MI Mortgage Jan-45 Prestige Healthcare 15,000 $ (2) 9,872 $ 1,183 $ 9.4% 6/29 15 SNF 2,058 beds Various cities in MI Mortgage Oct-43 Prestige Healthcare 40,000 40,000 4,934 9.4% 10/30 2 SNF 273 beds Farmington & Howell, MI Mortgage Oct-45 Prestige Healthcare 20,000 15,565 1,750 9.4% 18 75,000 $ 65,437 $ 7,867 $ 2016 4/29 2 SNF 216 beds East Lansing, MI Mortgage Apr-20 Prestige Healthcare 12,250 $ (3) 7,765 $ 497 $ 9.4% 8/31 2 SNF 146 beds Albany & Florence, OR Mezzanine Sep-21 Regency Pacific 1,400 (4) 1,200 61 15.0% 12/22 64 SNF 7,786 beds Various states Mezzanine Nov-21 Genesis 12,500 (5) 12,500 - 68 26,150 $ 21,465 $ 558 $ 8,148 beds Date 2,488 beds Stated Interest Rate 2016 YTD Revenue (1) Funded to Date LIBOR +11.75%

Real Estate Activities – De Novo Development (dollar amounts in thousands) Page 9 Includes purchase of land and initial improvement funding, if applicable, and development commitment. Remaining Commitment is calculated as follows: “Investment Commitment” less “Total Project Basis” plus “Total Capitalized Interest/Other”. Harvester Place Burr Ridge, IL Rendering: Boonespring of Boone County Union, KY Rendering: Boonespring of Boone County Union, KY # of Projects Property Type # Beds/ Units 4Q17 2015 Glenview, IL 1 MC 9.00% 66 units 15,814 $ 1,354 $ 241 $ 5,986 $ 10,069 $ 1Q18 2016 Oak Lawn, IL 1 MC 9.00% 66 units 14,469 2,236 16 2,252 12,233 4Q18 2016 Union, KY 1 SNF 8.50% 143 beds 24,325 354 62 5,904 18,483 Total 3 8.78% 132 units/143beds 54,608 $ 3,944 $ 319 $ 14,142 $ 40,785 $ Remaining Commitment (2) Total Project Basis Total Capitalized Interest/Other Estimated Rent/Interest Inception Date Commitment Year Location Investment Commitment (1) 4Q16 Funding Approximate Initial Cash Yield

Real Estate Activities – Expansions & Renovations (dollar amounts in thousands) Page 10 Rent increases at each six month anniversary on amounts funded during that period. Rent increases upon each funding. 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. Increased investment from $1,500 to $5,500 during 2Q16. Owned Mortgage Loans Medilodge of Richmond Expansion Rendering Richmond, MI Project Type # of Projects Property Type - (3) 2015 Expansion Richmond, MI 1 SNF 10,000 $ 1,215 $ 3,881 $ 6,119 $ - (3) 2015 Expansion Rochester Hills, MI 1 SNF 10,000 35 506 9,494 - (4) 2015 Renovation Farmington & Howell, MI 2 SNF 5,000 307 565 4,435 - (4) 2016 Expansion Grand Blanc, MI 1 SNF 5,500 (5) - 372 5,128 - (4) 2016 Renovation East Lansing, MI 2 SNF 4,500 15 15 4,485 Total 7 35,000 $ 1,572 $ 5,339 $ 29,661 $ Estimated Rent/Interest Inception Date Commitment Year Location Approximate Initial Cash Yield Total Funded to Date Remaining Commitment Investment Commitment 9.41% 9.41% 9.41% 9.41% 4Q16 Funding 9.41% Project Type # of Projects Property Type - (1) 2015 Renovation Las Vegas, NV 1 OTH 3,000 $ - $ - $ 3,000 $ - (2) 2016 Renovation Chesapeake, VA 1 SNF 1,500 326 326 1,174 Total 2 4,500 $ 326 $ 326 $ 4,174 $ Investment Commitment 4Q16 Funding Total Funded to Date Estimated Rent/Interest Inception Date Commitment Year Location Approximate Initial Cash Yield 8.50% 9.00% Remaining Commitment

Real Estate Activities – Lease-Up (dollar amounts in thousands) Page 11 Lease-Up History Lease-Up Represents date of Certificate of Occupancy. Property was newly constructed and purchased following issuance of final certificate of occupancy and licensure. Date Opened (1) Commitment Year Project Type Location # of Projects Property Type Approximate Initial Cash Yield # Beds/Units Feb-15 74% 2013 Development Westminster, CO 1 MC 9.25% 60 units 10,703 $ Sep-15 52% 2015 Acquisition (2) Jacksonville, FL 1 MC 8.00% 60 units 14,250 Feb-16 26% 2014 Development Burr Ridge, IL 1 MC 9.30% 66 units 12,248 Apr-16 67% 2016 Acquisition (2) Louisville, KY 1 MC 8.00% 60 units 14,250 May-16 36% 2015 Development Corpus Christi, TX 1 MC 8.75% 56 units 12,524 May-16 60% 2016 Acquisition (2) Athens, GA 1 ALF/MC 8.00% 70 units 14,300 Jul-16 15% 2015 Development Tinley Park, IL 1 MC 9.25% 66 units 11,887 Aug-16 23% 2015 Development Murrieta, CA 1 MC 9.00% 66 units 12,606 Sep-16 22% 2015 Development Murrells Inlet, SC 1 ALF/MC 8.75% 89 units 16,535 Nov-16 13% 2015 Development Wichita, KS 1 ILF 7.43% 108 units 14,500 10 133,803 $ 701 units Occupancy at 12/31/16 Total Commitment 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 Coldspring Transitional Care Center Cold Spring, KY SNF Development 143 beds Nov 2014 Jun 2016 19

Portfolio Metrics Page 12 Same Property Portfolio Statistics (1) Stabilized Property Portfolio TTM Ended September 30, 2016 31.05% 16.53% 52.42% Medicaid Medicare Private Pay Total Portfolio Payor Source 47.24% 25.43% 27.33% Medicaid Medicare Private Pay SNF Portfolio Payor Source Owned Properties 3Q16 2Q16 3Q16 2Q16 3Q16 2Q16 Assisted Living 85.5% 85.3% 1.50 1.54 1.27 1.32 Skilled Nursing 78.5% 78.8% 2.05 2.04 1.49 1.48 Range of Care 78.7% 85.0% 1.67 1.70 1.23 1.25 (1) Information is for the trailing twelve months through September 30, 2016 and June 30, 2016 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

Page 13 Skilled Nursing (92) Assisted Living (112) Other * (1) Range of Care (7) Under Development (3) Land (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 5 25 1 1 2 3 5 1 2 3 2 2 2 3 1 6 22 3 5 4 7 11 4 8 1 6 1 4 2 13 7 4 1 1 1 1 1 1 2 1 1 20 3 1 2 3 9 1 1 1 1 1 212 Properties 3 Development Projects 4 Land Parcels 30 States 31 Operators Portfolio Diversification – Geography (as of December 31, 2016) * Behavioral health care hospital

Page 14 Approximately 66% of our properties are in the Top 100 MSAs Gross Portfolio by MSA (1) Portfolio Diversification – Geography (as of December 31, 2016, dollar amounts in thousands) The MSA rank by population as of July 1, 2015, as estimated by the United States Census Bureau. Due to master leases with properties in multiple states, revenue by state is not available. Includes one behavioral health care hospital and four parcels of land. 48.2% 18.2% 20.1% 8.8% 4.7% 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 (2) % % Texas 48 216,370 $ 28.7% 55,949 $ 7.9% 2,228 $ 5.2% - $ - - $ - 274,547 $ 17.9% Michigan 20 214,142 28.4% - - - - - - 943 8.3% 215,085 14.0% Wisconsin 10 13,946 1.9% 112,187 15.8% - - - - - - 126,133 8.3% Colorado 16 6,037 0.8% 106,879 15.0% 2,007 4.7% - - - - 114,923 7.5% Ohio 13 54,000 7.2% 45,300 6.4% - - - - - - 99,300 6.5% Florida 12 35,362 4.7% 39,247 5.5% - - - - - - 74,609 4.9% Kansas 11 14,112 1.9% 56,457 7.9% - - - - - - 70,569 4.6% Illinois 3 - - 54,995 7.7% - - 8,238 58.3% - - 63,233 4.1% California 5 22,130 2.9% 40,759 5.7% - - - - - - 62,889 4.1% New Jersey 4 - - 62,042 8.7% - - - - - - 62,042 4.0% All Others 70 177,229 23.5% 137,830 19.4% 38,905 90.1% 5,904 41.7% 10,481 91.7% 370,349 24.1% Total 212 753,328 $ 100.0% 711,645 $ 100.0% 43,140 $ 100.0% 14,142 $ 100.0% 11,424 $ 100.0% 1,533,679 $ 100.0% Gross Investment

Annual Income by Operator 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 December 31, 2016. Portfolio Diversification – Operators (as of December 31, 2016, dollar amounts in thousands) Prestige Healthcare 15.8% Senior Lifestyle 12.0% Brookdale 9.5% Senior Care 9.5% Anthem 7.0% Preferred Care 6.7% Genesis 5.1% Fundamental 5.0% Carespring 4.6% Traditions Sr Mgmt 4.3% All Others 20.5% Operators Annual Income (1) % Gross Investment % Prestige Healthcare 22 26,256 $ 15.8% 227,274 $ 14.8% Senior Lifestyle Corporation 27 19,908 12.0% 201,862 13.2% Brookdale Senior Living 37 15,801 9.5% 126,991 8.3% Senior Care Centers 11 15,756 9.5% 138,109 9.0% Anthem Memory Care 9 11,673 7.0% 111,620 7.3% Preferred Care 27 11,177 6.7% 85,765 5.6% Genesis Healthcare 8 8,434 5.1% 54,864 3.6% Fundamental 7 8,306 5.0% 74,652 4.9% Carespring Health Care Management 3 7,635 4.6% 83,450 5.4% Traditions Senior Management 5 7,167 4.3% 64,609 4.2% All Others 56 34,327 20.5% 364,483 23.7% 212 166,440 $ 100.0% 1,533,679 $ 100.0% # of Properties

Privately Held Privately Held Privately Held NYSE: GEN Privately Held SNF/MC Hospitals & Other Rehab Exclusively MC SNF/ALF/ILF Transitional Care SNF/ALF Senior Living SNF/ALF/ILF 79 Properties 10 Properties 11 Properties Approx 500 Properties 24 Properties 9 States 4 States 2 States 34 States 5 States Portfolio Diversification - Top Ten Operator Profiles (as of December 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 177 Properties Approx 1,077 Properties 108 Properties 111 Properties 7 States 28 States 47 States 2 States 12 States

Page 17 (As a % of Total Annual Income)(1) Portfolio Maturity (as of December 31, 2016, dollar amounts in thousands) 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 December 31, 2016. 0.2% 5.6% 0.9% 8.3% 8.5% 0.5% 1.5% 58.5% 0.3% 0.5% 0.2% 0.3% 0.0% 0.0% 0.0% 14.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2017 2018 2019 2020 2021 2022 2023 Thereafter Leases Loans % of Total % of Total Annual Income (1) % of Total 2017 359 $ 0.3% 488 $ 1.8% 847 $ 0.5% 2018 9,297 6.7% 827 3.1% 10,124 6.1% 2019 1,571 1.0% 376 1.4% 1,947 1.1% 2020 13,826 9.9% 497 1.9% 14,323 8.6% 2021 14,091 10.1% - - 14,091 8.5% 2022 771 0.6% - - 771 0.5% 2023 2,539 1.8% - - 2,539 1.5% 97,274 69.6% 24,524 91.8% 121,798 73.2% Total 139,728 $ 100.0% 26,712 $ 100.0% 166,440 $ 100.0% Thereafter Year Rental Income (1) Interest Income (1)

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. Represents outstanding balance of $503,300, net of debt issue costs of $1,009. Rate includes amortization of debt issue cost. Closing price of our common stock as reported by the NYSE on December 31, 2016. See page 23 for reconciliation of annualized normalized EBITDA. The Pavilion at Glacier Valley Slinger, WI 75.1% 24.9% Capitalization Bank borrowings - weighted average rate 2.2% (1) 107,100 $ Senior unsecured notes -weighted average rate 4.5% (2) 502,291 Total debt - weighted average rate 4.1% 609,391 24.9% 12/31/16 No. of shares Common stock 39,221,370 46.98 $ (3) 1,842,620 75.1% 2,452,011 $ 100% Less: Cash and cash equivalents (7,991) 2,444,020 $ Debt to Enterprise Value 24.9% Debt to Annualized Normalized EBITDA (4) 4.1x Enterprise Value At December 31, 2016 Debt Equity Closing Price Total Market Value

Proforma Enterprise Value(1) (amounts in thousands, except per share amounts and number of shares) Page 19 Capitalization Total Debt Common Stock Proforma includes the sale of $100,000 of senior unsecured notes at a 4.5% rate, scheduled debt principal payments, repayment of borrowings under our line of credit, the sale of 312,881 shares of common stock under our equity distribution agreement, and 51,069 shares relating to restricted common stock grant and vesting. Represents outstanding balance of $599,133, net of debt issue costs of $1,009. Rate includes amortization of debt issue cost. Closing price of our common stock as reported by the NYSE on December 31, 2016. See page 23 for reconciliation of annualized normalized EBITDA. 75.7% 24.3% Capitalization Bank borrowings - weighted average rate - $ Senior unsecured notes -weighted average rate 4.5% (2) 598,124 Total debt - weighted average rate 4.5% 598,124 24.3% 12/31/16 No. of shares Common stock 39,585,320 (1) 46.98 $ (3) 1,859,718 75.7% 2,457,842 $ 100% Less: Cash and cash equivalents (8,043) 2,449,799 $ Debt to Enterprise Value 24.4% Debt to Annualized Normalized EBITDA (4) 4.0x Enterprise Value At December 31, 2016 Debt Equity Closing Price Total Market Value

Debt Maturity (as of December 31, 2016, dollar amounts in thousands) Page 20 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. Reflects scheduled principal payments. Excludes debt issue costs which are included in the senior unsecured notes balance shown on page 18. $0 $107,100 $0 $0 $0 $0 $0 $31,167 $38,167 $33,666 $40,160 $40,160 $41,160 $278,820 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2017 2018 2019 2020 2021 2022 Thereafter Unsecured Line Senior Unsecured Notes 82.5% 17.5% $ - $ 31,167 $ 31,167 5.1% 107,100 38,167 145,267 23.8% - 33,666 33,666 5.5% - 40,160 40,160 6.6% - 40,160 40,160 6.6% - 41,160 41,160 6.7% - 278,820 278,820 45.7% $ 107,100 $ 503,300 $ 610,400 (3) 100.0% 2021 Year Unsecured Line of Credit (1) Senior Unsecured Notes (2) Total % of Total 2017 2018 2019 2020 2022 Thereafter Total

Proforma Debt Maturity(1) (as of December 31, 2016, dollar amounts in thousands) Page 21 Debt Structure Senior Unsecured Notes Proforma includes the sale of $100,000 of senior unsecured notes at a 4.5% rate, scheduled debt principal payments and repayment of borrowings under our line of credit. Total commitment under our unsecured revolving line of credit is $600,000 which matures in October 2018, with a one-year extension option. Reflects scheduled principal payments. Excludes debt issue costs which are included in the senior unsecured notes balance shown on page 19. $0 $0 $0 $0 $0 $0 $0 $27,000 $38,167 $33,666 $40,160 $47,160 $48,160 $364,820 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2017 2018 2019 2020 2021 2022 Thereafter Unsecured Line Senior Unsecured Notes 100.0% $ - $ 27,000 $ 27,000 4.5% - 38,167 38,167 6.4% - 33,666 33,666 5.6% - 40,160 40,160 6.7% - 47,160 47,160 7.9% - 48,160 48,160 8.0% - 364,820 364,820 60.9% $ - $ 599,133 $ 599,133 (4) 100.0% 2022 Thereafter Total 2021 Year Unsecured Line of Credit (2) Senior Unsecured Notes (3) Total % of Total 2017 2018 2019 2020

Financial Data Summary (dollar amounts in thousands) Page 22 Proforma includes the sale of $100,000 of senior unsecured notes at a 4.5% rate, scheduled debt principal payments, repayment of borrowings under our line of credit, the sale of 312,881 shares of common stock under our equity distribution agreement, and 51,069 shares relating to restricted common stock grant and vesting. Represents outstanding balance of gross bank borrowings and senior unsecured notes, net of debt issue costs. Balance Sheet, Leverage Ratios and Coverage Ratios 12/31/16 12/31/15 12/31/14 12/31/13 Balance Sheet Gross real estate assets $1,533,679 $1,533,679 $1,418,405 $1,117,167 $1,104,732 Net real estate assets 1,255,503 1,255,503 1,164,950 892,179 884,361 Gross asset value 1,673,290 1,673,238 1,528,879 1,189,758 1,150,676 Total debt (2) 598,124 609,391 571,872 280,584 277,730 Total liabilities 643,581 654,848 616,222 304,649 297,867 Preferred stock - - - 38,500 38,500 Total equity 751,367 740,048 659,202 660,121 632,438 Leverage Ratios Debt to gross asset value 35.7% 36.4% 37.4% 23.6% 24.1% Debt to total enterprise value 24.4% 24.9% 26.2% 15.4% 18.0% Coverage Ratios Debt to annualized normalized EBITDA 4.0x 4.1x 4.3x 2.3x 2.9x Annualized normalized EBITDA / interest incurred 4.9x 5.3x 5.7x 7.6x 7.9x Annualized normalized EBITDA / fixed charges 4.9x 5.3x 5.7x 6.3x 6.2x 4Q16 Proforma (1)

Financial Data Summary (dollar amounts in thousands) Page 23 Reconciliation of Annualized Normalized EBITDA and Fixed Charges Non-Cash Revenue Components For leases and loans in place at December 31, 2016, assuming no renewals, modification or replacement, and no new investments are added to our portfolio. Proforma includes the sale of $100,000 of senior unsecured notes at a 4.5% rate, scheduled debt principal payments and repayment of borrowings under our line of credit. Subsequent to December 31, 2016, we entered into a contingent purchase and sale agreement to sell an 85-unit ROC community in Texas for $1,200. Accordingly, we recorded an impairment charge of $766 to write the property down to its estimated sale price at December 31, 2016. Impairment on real estate for sale was not annualized. In 1Q16, we sold a 48-unit assisted living community and 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. 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. 5,276 $ 2,868 $ 2,283 $ 1,943 $ 1,667 $ (499) (522) (522) (522) (522) 1,349 1,387 1,390 1,381 1,383 6,126 $ 3,733 $ 3,151 $ 2,802 $ 2,528 $ 4Q17 (1) Straight-line rent Amort of lease inducement Net Effective Interest 4Q16 1Q17 (1) 2Q17 (1) 3Q17 (1) 4Q16 4Q15 4Q14 4Q13 Net income 82,764 $ 84,962 $ 76,808 $ 84,000 $ 58,600 $ Less: Gain on sale of real estate, net - - (586) (3) (3,819) (4) - Add: Impairment on real estate for sale 766 (2) 766 (2) 2,250 (3) - - Add: Interest expense 29,622 27,424 22,324 14,732 11,408 Add: Depreciation and amortization 37,236 37,236 33,240 26,376 24,948 Adjusted EBITDA 150,388 150,388 134,036 121,289 94,956 Add back/(deduct): Non-recurring one-time items - - - - 1,980 (5) Normalized EBITDA 150,388 $ 150,388 $ 134,036 $ 121,289 $ 96,936 $ Interest expense: 29,622 $ 27,424 $ 22,324 $ 14,732 $ 11,408 $ Add: Capitalized interest 860 860 1,384 1,160 856 Interest incurred 30,482 $ 28,284 $ 23,708 $ 15,892 $ 12,264 $ Interest incurred 30,482 $ 28,284 $ 23,708 $ 15,892 $ 12,264 $ Preferred stock dividend - - - 3,276 3,276 Fixed Charges 30,482 $ 28,284 $ 23,708 $ 19,168 $ 15,540 $ 4Q16 Proforma (1) Annualized

Income Statement Data (amounts in thousands, except per share amounts) Page 24 Coldspring of Campbell County Cold Spring, KY 2016 2015 2016 2015 Revenues Rental income 34,822 $ 30,755 $ 133,527 $ 113,080 $ Interest income from mortgage loans 6,974 6,342 27,321 22,119 Interest and other income 345 296 735 1,004 Total revenues 42,141 37,393 161,583 136,203 Expenses Interest expense 6,856 5,581 26,442 17,497 Depreciation and amortization 9,309 8,310 35,932 29,431 Impairment on real estate for sale 766 2,250 766 2,250 Provisions for doubtful accounts 212 156 457 619 Transaction costs 83 112 179 744 General and administrative expenses 4,548 3,892 17,412 14,986 Total expenses 21,774 20,301 81,188 65,527 Operating Income 20,367 17,092 80,395 70,676 Income from unconsolidated joint ventures 299 276 1,138 1,819 Gain on sale of real estate, net - 586 3,582 586 Net Income 20,666 17,954 85,115 73,081 Income allocated to participating securities (89) (114) (385) (484) Income allocated to preferred stockholders - - - (2,454) Net income available to common stockholders 20,577 $ 17,840 $ 84,730 $ 70,143 $ Earnings per common share: Basic $0.53 $0.49 $2.21 $1.97 Diluted $0.53 $0.48 $2.21 $1.94 Weighted average shares used to calculate earnings per common share: Basic 39,065 36,433 38,388 35,590 Diluted 39,260 37,358 38,597 37,329 Dividends declared and paid per common share $0.57 $0.54 $2.19 $2.07 (unaudited) (audited) Three Months Ended Twelve Months Ended December 31, December 31,

Consolidated Balance Sheets (amounts in thousands, except per share amounts) Page 25 (audited) (audited) (audited) (audited) ASSETS Investments: LIABILITIES Land 116,096 $ 106,841 $ Buildings and improvements 1,185,467 1,091,845 Bank borrowings 107,100 $ 120,500 $ Accumulated depreciation and amortization (275,861) (251,265) Senior unsecured notes, net of debt issue Real property investments, net 1,025,702 947,421 costs: 2016 - $1,009; 2015 - $1,095 502,291 451,372 Mortgage loans receivable, net of loan loss Accrued interest 4,675 3,974 reserve: 2016 - $2,315; 2015 - $2,190 229,801 217,529 Accrued incentives and earn-outs 12,229 12,722 Real estate investments, net 1,255,503 1,164,950 Accrued expenses and other liabilities 28,553 27,654 Notes receivable, net of loan loss reserve Total liabilities 654,848 616,222 2016 - $166; 2015 - $0 16,427 1,961 Investments in unconsolidated joint ventures 25,221 24,042 Investments, net 1,297,151 1,190,953 EQUITY Other assets: Cash and cash equivalents 7,991 12,942 Stockholders' equity: Debt issue costs related to bank borrowings 1,847 2,865 Common stock (1) 392 375 Interest receivable 9,683 4,536 Capital in excess of par value 839,005 758,676 Straight-line rent receivable, net of allowance for Cumulative net income 1,013,443 928,328 doubtful accounts: 2016 - $960; 2015 - $833 55,276 42,685 Accumulated other comprehensive income - 47 Prepaid expenses and other assets 22,948 21,443 Cumulative distributions (1,112,792) (1,028,224) Total equity 740,048 659,202 Total assets 1,394,896 $ 1,275,424 $ Total liabilities and equity 1,394,896 $ 1,275,424 $ (1) Common stock $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2016 - 39,221; 2015 - 37,548 December 31, 2016 December 31, 2016 December 31, 2015 December 31, 2015

Funds from Operations (unaudited, amounts in thousands, except per share amounts) Page 26 Reconciliation of FFO, AFFO, and FAD Represents a $537 of acquisition costs related to the 10-property senior housing portfolio acquired and a $400 provision for loan loss reserve related to additional loan proceeds funded under an existing mortgage loan. 2016 2015 2016 2015 GAAP net income available to common stockholders 20,577 $ 17,840 $ 84,730 $ 70,143 $ Add: Depreciation and amortization 9,309 8,310 35,932 29,431 Add: Impairment on real estate for sale 766 2,250 766 2,250 Less: Gain on sale of real estate, net - (586) (3,582) (586) NAREIT FFO attributable to common stockholders 30,652 27,814 117,846 101,238 Add: Non-recurring one-time items - - - 937 (1) Normalized FFO attributable to common stockholders 30,652 27,814 117,846 102,175 Less: Non-cash rental income (4,777) (2,559) (11,532) (8,456) Less: Effective interest income from mortgage loans (1,349) (1,232) (5,256) (3,912) Less: Deferred income from unconsolidated joint ventures - - - (1,000) Normalized adjusted FFO (AFFO) 24,526 24,023 101,058 88,807 Add: Non-cash compensation charges 1,131 913 4,280 4,006 Add: Non-cash interest related to earn-out liabilities 146 204 684 409 Less: Capitalized interest (215) (346) (1,408) (827) Normalized funds available for distribution (FAD) 25,588 $ 24,794 $ 104,614 $ 92,395 $ $0.78 $0.74 $3.06 $2.77 Twelve Months Ended December 31, December 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 27 Reconciliation of FFO Per Share For the three months ended December 31, Normalized FFO/AFFO/FAD attributable to common stockholders 30,652 $ 27,814 $ 24,526 $ 24,023 $ 25,588 $ 24,794 $ Effect of dilutive securities: Participating securities 89 114 89 114 89 114 Series C cumulative preferred - - - - - - Diluted normalized FFO/AFFO/FAD assuming conversion 30,741 $ 27,928 $ 24,615 $ 24,137 $ 25,677 $ 24,908 $ 39,065 36,433 39,065 36,433 39,065 36,433 Effect of dilutive securities: Stock options 11 12 11 12 11 12 Performance based stock units (MSU) 27 - 27 - 27 - Participating securities 157 219 157 219 157 219 Series C cumulative preferred - 913 - 913 - 913 Shares for diluted normalized FFO/AFFO/FAD per share 39,260 37,577 39,260 37,577 39,260 37,577 For the twelve months ended December 31, Normalized FFO/AFFO/FAD attributable to common stockholders 117,846 $ 102,175 $ 101,058 $ 88,807 $ 104,614 $ 92,395 $ Effect of dilutive securities: Participating securities 385 484 385 484 385 484 Series C cumulative preferred - 2,454 - 2,454 - 2,454 Diluted normalized FFO/AFFO/FAD assuming conversion 118,231 $ 105,113 $ 101,443 $ 91,745 $ 104,999 $ 95,333 $ 38,388 35,590 38,388 35,590 38,388 35,590 Effect of dilutive securities: Stock options 13 13 13 13 13 13 Performance based stock units (MSU) 27 - 27 - 27 - Participating securities 169 234 169 234 169 234 Series C cumulative preferred - 1,726 - 1,726 - 1,726 Shares for diluted normalized FFO/AFFO/FAD per share 38,597 37,563 38,597 37,563 38,597 37,563 2016 2015 FFO AFFO FAD 2016 2016 2016 Shares for basic FFO/AFFO/FAD per share 2015 2015 Shares for basic FFO/AFFO/FAD per share FFO AFFO FAD 2015 2015 2015 2016 2016

Glossary Page 28 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 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 s enior s 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 supervis ion 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 . 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 Properties (“ILF”) : Senior s 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 s apartments . Interest Income: Represents interest income from mortgage loans. Licensed Beds/Units: The number of beds and/or units tha t an operator is authorized to operate at senior s 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.

Glossary (cont.) Page 29 Memory Care Propertie s (“MC”) : Senior s 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 secu red environment that is typically smaller in scale and more residential in nature than traditional assisted living facilities. These facilities have staff ava ilable 24 hours a day to respond to the unique needs of their residents. Metropolitan Statistica l Areas ( “ MSA ” ) : Based on the U.S. Census Bureau, MSA is a geographic entity defined by the Office of Manageme nt and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A metro area contains a core urban area of 50,000 or more population. Mezzanine: In 2015 the Company strategically decided to allocate a portion of its capital deployment toward mezzanine loans to grow relatio nships with operating companies that have not typically utilized sale leaseback financing as a component of their capital structure . Mezzanine financing sits between senior debt and common equity in the capital structure, and typically is used to finance development projects or value - add opportunities on existing operational properties. We seek market - based, risk - adjusted rates of r eturn typically between 12 - 18% with the loan term typically between four to eight years. Security for mezzanine loans can include all or a portion of the following credit enhancements; secured second mortgage, pledge of equity interests and personal/corpo rate guarantees. Mezzanine loans can be recorded for GAAP purposes as either a loan or joint venture depending upon specifics of the loan term s and related credit enhancements. Micropolitan Statistical Areas ( “ Micro - SA ” ) : Based on the U.S. Census Bureau, Micro - SA is a geographic entity defined by the Office of Manageme nt 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. Mortgage Loan: Mortgage financing is provided on properties based on our established investment underwriting criteria and secured by a first mortgage . Subject to underwriting , additional credit enhancements may be required including, but not limited to, personal/corporate guarantees and debt servic e reserves. When possible, LTC attempts to negotiate a purchase option to acquire the property at a f uture time and lease the property back to the borrower. Net Real Estate Assets: G ross real esta te 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 ad justed for non - recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, and rent divided by the operator’s contractual lease rent. Man agement fees are imputed at 5% of revenues. Normalized EBITDARM Coverage: The tr ailing twelve month’s earnings from the operator financial statements adjusted for non - recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, rent, and management fees divided by the operator’s contractual lease ren t.

Glossary (cont.) Page 30 Glossary Normalized FAD: FAD adjusted for non - recurring, infrequent or unusual items . Normalized FFO: FFO adjusted for non - recurring, infrequent or unusual items. Occupancy: The weighted average percentage of all beds and/or units that are occupied at a given time. The calculation uses the trailing twelve months and is based on licensed beds and/or units which may differ from the number of beds and/or units in service at any given time. Operator Financial Statements: Proper ty level operator financial statements which are unaudited and have not been independently verified by us. 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 percentag e is calculated 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 ord erly 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 all ow 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 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 . 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. Skilled Nursing Properties (“SNF”) : Senior s 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 occupational, speech, p hysical, 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 fede ral Medicare or state Medicaid programs. Stabilized: Properties are general ly considered sta bilized upon the earlier of achieving certain occupancy thresholds ( e.g. 80% for SNF s and 90% for ALF s ) 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 service. Under Development Properties (“UDP”): Development project s to construct senior s housing propert ies .

LTC Properties, Inc. Company Founded in 1992, LTC Properties, Inc. ("LTC") is a self-administered real estate investment trust that primarily invests in seniors 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 seniors housing and health care properties managed by experienced operators. Our primary seniors 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, 2016 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 23, 26, and 27 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 31