LTC Properties : Climate Related Disclosure

LTC PROPERTIES, INC.

CLIMATE-RELATED DISCLOSURE

April 2024

LTC Properties, Inc. recognizes the importance of understanding and documenting how climate change impacts our properties and we remain committed to proactively assessing and managing climate risks that could impact critical business functions and decisions going forward.

While the substantially triple net lease (NNN) structure(1) and diversity of LTC's portfolio mitigates our direct material exposure, LTC has taken various strategic steps to identify physical climate risks and exposure. Beginning in 2022, we have expanded our existing risk management processes to include specific analysis for heat, fire, storm, drought, and flood stress. Additionally, we continue to monitor evolving regulatory and investor impacts such as the proposed SEC rule on climate disclosure.

Managing Climate Risk

LTC maintains a diversified portfolio with 82% of properties located outside of extreme high-risk areas(2). By conducting climate assessments at the individual asset level, we can identify which properties are potentially at higher risk of severe weather events caused by climate change.

Our goal is to help our tenants and borrowers proactively determine how they can prevent and mitigate property damage and loss before extreme weather events occur. Such recommendations range from simple maintenance and landscaping best practices, to more extensive energy efficient, water conservation, and sustainable opportunities, to emergency planning and preparedness. Ultimately, this allows us to better manage exposure, identify, and support more efficient resiliency measures and practices.

Enterprise-Wide Climate Change Scenario Analysis

We utilize ClimateCheck® Enterprise Risk Application to perform both current and longer-term climate change analysis to help us identify and measure the potential climate risk exposure of our tenants and borrowers which could ultimately impact our real estate exposure. We review current to longer-term risk under multiple scenarios including Representative Concentration Pathways (RCPs)(3) 4.5 and RCP 8.5. As of December 31,2022, we identified ClimateCheck® risk ratings on 202 properties plus our headquarters in Westlake Village, California (see results in graphics below). Additionally, climate risk analysis has been fully integrated into our

underwriting criteria for new business opportunities. In cases of extreme risk, we reevaluate the opportunity to explore mitigation options or may possibly rule the property out completely, depending on the circumstances and risk factors.

Below is an overview of LTC's portfolio as of December 31, 2023. Also included is a comprehensive report of LTC's headquarters identifying risks and including mitigation recommendations. This report is representative of all property level reports.

1. A triple net lease (NNN) is a type of commercial lease agreement in which the tenant agrees to pay for all or a portion of the property's operating expenses, in addition to the base rent. These operating expenses can include property taxes, insurance, and maintenance costs, among others. The NNN structure typically places most of the financial responsibilities on the tenant, which frees the landlord from many of the property management duties.
2. Extreme high-risk areas defined as the top 20% highest risk exposure compared to the overall continental US, based on the average of the total individual Heat, Precipitation, Drought, Fire, and Flood risk (see Exhibit A)
3. Representative Concentration Pathways (RCPs) are scenarios that include time series of emissions and concentrations of the full suite of greenhouse gases (GHGs) and aerosols and chemically active gases, as well as land use/land cover. (Source: Intergovernmental Panel on Climate Change:www.ipcc-data.org)

Exhibit A: LTC Properties Total Portfolio

About these ratings:

ClimateCheck® ratings reflect hazard risk at a property relative to the rest of the contiguous United States. Ratings are based on projected 2050 risk and the change from historical risk. A rating of 1 represents the lowest risk; 100 is the highest.

Exhibit B: LTC Properties Headquarters - Example of full report

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LOCATIONRISK RATINGS

	3011 Townsgate Rd, Westlake Village, CA 91361	1-86	/100
	REPORT CONTENTS		1990	2050
Page 3	Drought	Water Stress				85%
	68%				86
	Extreme risk
6	Fire		Fire Weather
	Days 9	13	59
	High risk
11	Precipitation	Rain in	14
Extremes
			14	39
	Signi	cant risk	(in.)
14	Heat		Extremely
	Hot Days				29	36
	Signi	cant risk		7
17	Wind		Gale Force
	Winds							22
	Signi	cant risk		3	2
20	Flood			There is	ooding risk within
		about 100m of this property.	1

Relatively Low risk	See Flood section for details.

Supplemental Data

1. National Risk Index
2. Emissions Scenarios
   Landslides: there is no recorded landslide within about 30km of this property.

Prepared on May 14, 2024

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3011 Townsgate Rd, Westlake Village, CA 91361

Selected Geometry

Address

3011 Townsgate Rd, Westlake Village, CA 91361

Coordinates

-118.821306º, 34.152358º

Boundaries

Rating Information

Our ratings re ect hazard risk at a property relative to the rest of our data coverage area. Ratings are based on historical risk and projected 2050 risk. A rating of 1 represents the least risk (but not necessarily none).

100

Extreme

Very High

High

Signi cant

Relatively Low 0

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86 Drought	3011 Townsgate Rd, Westlake Village, CA 91361
Extreme Risk

Projected Water Stress

Risk Rating: 86/100. Compared to the contiguous U.S., this property has extreme risk of water stress due to climate change.

In this location, historically, average water stress is about 67.72%. In 2050, based on projected climate change and water demand, the average water stress is about 85.06%.

SCENARIO*		RCP8.5										RCP4.5
			2015	2030	2045	2060	2015	2030	2045	2060
	Property67.7%	72.3%	75.2%	78.8%	67.7%	72.3%	75.2%	78.8%
			48.3%	52.0%	54.3%	57.3%	48.3%	52.0%	54.3%	57.3%
	Region**†
	U.S.**	4.9%	4.8%	4.8%	4.9%	4.9%	4.8%	4.8%	4.9%
0.9									0.9
0.8									0.8
0.7									0.7
0.6									0.6
0.5									0.5
0.4									0.4
0.3									0.3
0.2									0.2
0.1									0.1
0.0									0.0

2015 2030 2045 2060 2015 2030 2045 2060

* See emissions scenario data in Supplemental Data section.

** Colored area represents 25th-75th percentile estimate for population. Table shows 50th percentile.

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86 Drought

Extreme Risk

3011 Townsgate Rd, Westlake Village, CA 91361

Risk Ratings for Drought in California

The numbers of people with each Drought Risk level in California, and their approximate locations, are shown below. Larger circles represent a greater number of people.

Population

21k

150k

550k

1.6M

Risk

Extreme

Very High

High

Signi cant

Relatively Low

Drought Risk Ratings by Population in CA

Risk Level Population	Total	%
90-100								2.1M	7%
80-90								9.0M	30%
70-80								4.8M	16%
60-70								2.7M	9%
51-60								230k	1%
41-51								2.8M	9%
31-41								4.2M	14%
21-31								2.7M	9%
11-21								1.2M	4%
1-11								510k	2%

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86 Drought

Extreme Risk

3011 Townsgate Rd, Westlake Village, CA 91361

Data and Methodology

Climatecheck's drought risk rating in the U.S. represents the risk a property faces of experiencing signi cant water stress with climate change. We measure water stress by calculating the average ratio of water demand to water supply within a watershed region. Projections are based on trends in the climate, demographics, and uses such as irrigation and thermoelectric power. Our analysis is based on data using an ensemble of 20 climate models to estimate water supply and demand across the United States. This dataset includes interbasin transfers (places where water sourced from one area is used in another). Water Stress for your property is measured within your local HUC8 watershed. This watershed does not necessarily account for a water provider's strategies to overcome water stress such as through aqueducts and other infrastructure. For further detail, please check with your local water utility to understand the sources of your water supply.

Data Sources:

Duan, Kai & Caldwell, Peter & Sun, Ge & Mcnulty, Steven & Zhang, Yang & Shster, Erik & Liu, Bingjun & Bolstad, Paul. (2019). Understanding the role of regional water connectivity in mitigating climate change impacts on surface water supply stress in the United States. Journal of Hydrology. 570. 10.1016/j.jhydrol.2019.01.011.

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