LTC Properties : Q2 2020 Supplemental Operating and Financial Data

Weatherly Court

Medford, OR

SUPPLEMENTAL OPERATING and FINANCIAL DATA

SECOND QUARTER 2020

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, 2019 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 EBITDAre, adjusted EBITDAre, FFO, FFO excluding non-recurring items, FAD, FAD excluding non-recurring items, adjusted interest coverage ratio, and adjusted fixed charges coverage ratio. A reconciliation of this non-GAAP information is provided on pages 22, 25 and 26 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.

SUPPLEMENTAL INFORMATION 2Q 2020

TABLE OF CONTENTS

2

Founded in 1992, LTC Properties, Inc. (NYSE: LTC) is a self-administered real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including preferred equity and mezzanine lending. LTC's portfolio encompasses Skilled Nursing Facilities (SNF), Assisted Living Communities (ALF), Independent Living Communities (ILF), Memory Care Communities (MC) and combinations thereof. Our main objective is to build and grow a diversified portfolio that creates and sustains shareholder value while providing our stockholders current distribution income. To meet this objective, we seek properties operated by regional

LEADERSHIP

operators, ideally offering upside and portfolio diversification (geographic, operator, property type and investment vehicle). For more information, visit www.LTCreit.com.

BOARD OF DIRECTORS

ANALYSTS

Wendy Simpson

Chairman and

Chief Executive Officer

Cece Chikhale

Executive Vice President,

Chief Accounting Officer,

and Treasurer

Peter Lyew

Vice President,

Director of Taxes

Pam Kessler

Co-President,

CFO and Secretary

Doug Korey

Executive Vice President,

Managing Director of

Business Development

Mandi Hogan

Vice President,

Marketing &

Investor Relations

Clint Malin

Co-President and

Chief Investment Officer

Gibson Satterwhite

Senior Vice President,

Asset Management

Mike Bowden

Vice President,

Investments

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.

SUPPLEMENTAL INFORMATION 2Q 2020

LTC PROPERTIES, INC.	TRANSFER AGENT
2829 Townsgate Road	American Stock Transfer
Suite 350	and Trust Company
Westlake Village, CA 91361	6201 15th Avenue
805-981-8655	Brooklyn, NY 11219
www.LTCreit.com	866-708-5586

3

EXECUTION OF GROWTH STRATEGY

$1.5 Billion in Total Investments Underwritten

$450											$414
$375
$300					$245
$225							$185
$150													$142
	$94	$109											$103
																$80			$81
$75									$25	$112										$16
					$68	$44
									$39			$28
$0			$9			$12			$22			$17
2010	2011	2012	2013	2014	2015	2016	2017	2018			2019		YTD 2020
				Development/Expansions/Renovations				Total LTC Investment
														(excludes non-controlling partners' contributions)

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

4

REAL ESTATE ACTIVITIES - ACQUISITIONS AND LOAN ORIGINATIONS

(DOLLAR AMOUNTS IN THOUSANDS)

ACQUISITIONS

1. 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 Quarterly Report on Form 10-Q.
2. We entered into a JV to purchase an existing operational 74-unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,976 in cash. LTC's economic interest in the real estate JV is approximately 95%. We account for the JV on a consolidated basis. See page 6 for joint venture contributions.
3. We acquired a 90-bedpost-acute skilled nursing center in Kansas City, MO. We also acquired a parcel of land and committed to develop a 90-bedpost-acute skilled nursing center in Independence, MO.
4. See page 7 for development activities.
5. Escalated by 2% in December 2019 and annually thereafter.
6. Capital improvement commitment is available to both properties for a total of $2,285.

LOAN ORIGINATIONS

1. We funded additional loan proceeds of $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41%, fixed for two years, and escalating annually by 2.25% thereafter.
2. We funded additional loan proceeds of $2,000 under an existing mortgage loan. The incremental funding bears interest at 8.89%, escalating annually by 2.25% thereafter.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

5

REAL ESTATE ACTIVITIES -JOINT VENTURES

(DOLLAR AMOUNTS IN THOUSANDS)

CONSOLIDATED JOINT VENTURES

1. Certificate of occupancy was received on March 18, 2020, and license was received on May 29, 2020. Due to COVID-19 pandemic, opening has been delayed and is currently expected to occur in Fall of 2020. This project was completed under budget.
2. Represents a single joint venture with ownership in two properties.

Hamilton House

Cedarburg, WI

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

6

REAL ESTATE ACTIVITIES - DE NOVO DEVELOPMENT & RENOVATIONS

(DOLLAR AMOUNTS IN THOUSANDS)

CONSTRUCTION IN PROGRESS

1. Includes purchase of land and development commitment.
2. Remaining Commitment is calculated as follows: "Investment Commitment" less "Total Project Basis" plus "Total Capitalized Interest/Other."
3. In August 2019, we acquired a parcel of land for $2,622 and committed to develop a 90-bedpost-acute skilled nursing center.

RENOVATIONS: MORTGAGE LOANS

1. Commitment is secured by two properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding.
2. Commitment is part of the total loan commitment secured by four properties in Michigan operated by Prestige Healthcare. Interest payment increases upon each funding.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

7

REAL ESTATE ACTIVITIES - LEASE-UP

(DOLLAR AMOUNTS IN THOUSANDS)

1. Represents date of Certificate of Occupancy.
2. Total Investment includes land acquisition, closing costs and total development funding and excludes capitalized interest.
3. Certificate of occupancy was received in February 2019, however licensure was not received until April 2019.
4. Certificate of occupancy was received on March 18, 2020, and license was received on May 29, 2020. Due to COVID-19 pandemic, opening has been delayed and is currently expected to occur in Fall of 2020.

Weatherly Court

Medford, OR

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

8

REAL ESTATE ACTIVITIES - LEASE-UP HISTORY

1. Represents date of Certificate of Occupancy.
2. Property meets the definition of stabilized by being open for 24 months but has not yet achieved the occupancy threshold requirement of 90% for ALF. The occupancy at June 30, 2020 was 56%.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

9

REAL ESTATE ACTIVITIES - CAPITAL RECYCLING

On average, LTC has sold approximately $20.7 million(1) annually

			Since 2000: •	Total Sales Price of $434.2 million
			• Total Gain of $183.6 million
$115
$95
$75
$55
$35
$15
($5)
2000	2003	2006	2009	2012	2015	2018	YTD
			Sales		Gain/(Loss)		2020

1. Reflects total sales price.

SUPPLEMENTAL INFORMATION 2Q 2020

INVESTMENTS

10

PORTFOLIO OVERVIEW

(DOLLAR AMOUNTS IN THOUSANDS)

1. Includes "cash rent," "straight-line rent" and "amortization of lease incentives" and excludes real estate taxes reimbursement, straight-line rent write-off and rental income from properties sold during the twelve months ended June 30, 2020.
2. Includes "interest income from mortgage loans" and excludes interest income from mortgage loans that paid off during the twelve months ended June 30, 2020.
3. Includes a development project consisting of a 90-bed SNF center in Missouri.
4. Includes three parcels of land held-for use and one behavioral health care hospital.

Gross Real Property

84.8% $1.4B

29	27	180 Properties
Operators
States
	1 Development project
		3 Land parcels

Loans Receivable

15.2% $0.3B

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

11

PORTFOLIO METRICS

(TRAILING TWELVE MONTHS THROUGH MARCH 31, 2020 AND DECEMBER 31, 2019)

SAME PROPERTY PORTFOLIO STATISTICS (1)(2)

ASSISTED LIVING

2.00									100.0%
1.50									95.0%
1.40	1.39		90.0%
1.00
	1.18		1.17			85.0%
0.50			85.8%			85.8%			80.0%
0.00
								75.0%
		4Q19		1Q20
	Normalized EBITDAR	Normalized EBITDARM			Occupancy

Excluding Senior Lifestyle, normalized EBITDAR and EBITDARM coverage was 1.26 and 1.49, respectively and occupancy was 85.9%.

SKILLED NURSING

2.00									100.0%
	1.79	1.76
1.50			90.0%
1.00		1.34		1.31			80.0%
0.50		79.6%			79.7%			70.0%
0.00									60.0%
		4Q19		1Q20
	Normalized EBITDAR	Normalized EBITDARM			Occupancy

STABILIZED PROPERTY PORTFOLIO (1)(2)

	TOTAL PORTFOLIO PAYOR SOURCE		SNF PORTFOLIO PAYOR SOURCE
70.0%				60.0%
60.0%				50.0%
57.8%		58.4%
50.0%		40.0%		46.9%	48.3%
40.0%
			30.0%
30.0%				31.4%	30.0%
	29.3%	29.1%	20.0%
20.0%
	21.7%		21.7%
			10.0%
10.0%
12.9%		12.5%
0.0%		0.0%
4Q19		1Q20	4Q19		1Q20
	Private Pay	Medicare	Medicaid		Private Pay	Medicare	Medicaid

1. Information is from property level operator financial statements which are unaudited and have not been independently verified by LTC.
2. The coverage and occupancy levels at our properties will be adversely affected if COVID-19 or another pandemic results in infections on a large scale at our properties, early resident move-outs, our operators delay accepting new residents due to quarantines, and/or potential occupants postpone moving to a senior housing facility.

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

12

PORTFOLIO DIVERSIFICATION - GEOGRAPHY

(AS OF JUNE 30, 2020)

States in which we have some of the highest concentration of properties are states with the highest projected increases in the 80+ population cohort over the next

WA

1

MT

1

ORID

2

WY

1

CA	NV	UT	CO

ND
	MN	WI
SD		1
NE	4	IA
KS		MO

10

5

						ME
22	2			NY
MI
		PA	2			4
	OH		NJ
	7
	2
IN	WV	VA

2 5

13

8	1	1
1

IL

		4	1
2	1
KY		NC

AZ

NM

3

7

	OK
		6
		AR
TX
17	17	LA

MS

1

TN	2		5
	SC
			27 STATES
AL		GA	2 5
						SNF (72)
	1		1
						ALF (107)
								OTH* (1)
			FL					UDP(1)
			4					Land (3)
			7	* Behavioral health
							care hospital

Represents 10 states with the highest projected increases in the 80+ population cohort from year 2020 to year 2030 Source: The American Senior Housing Association, Winter 2018, Population Growth Forecast by State

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

13

PORTFOLIO DIVERSIFICATION - GEOGRAPHY

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

1. Due to master leases with properties in 27 states, revenue by state is not available.
2. Includes one behavioral health care hospital and three parcels of land.

GROSS PORTFOLIO BY MSA (1)

AVERAGE PORTFOLIO AGE (1)

60.0%
	49.0%
40.0%
	19.0%	22.0%
20.0%
				7.5%	2.5%
0.0%
	MSAs 1-31 MSAs 32-100 MSAs > 100 Cities in Micro-		Cities not in
								SA		MSA or Micro-

40

30

20

10

0

23 years

13 years

SA

1. The MSA rank by population as of July 1, 2019, as estimated by the United States Census Bureau. Approximately 68% of our properties are in the top 100 MSAs.

SUPPLEMENTAL INFORMATION 2Q 2020

Skilled Nursing

Assisted Living

1. As calculated from construction date or major renovation/expansion date. Includes owned portfolio and mortgage loans secured by 22 SNF properties in Michigan.

PORTFOLIO 14

PORTFOLIO DIVERSIFICATION - 29 OPERATORS

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

(1)

(2)	(2)
(3)	(3)
(4)	(4)

1. Represents annualized income for the month of June 2020 for leased properties, except for Anthem and Senior Lifestyle as noted below, and annualized interest income from mortgage loans outstanding as of June 30, 2020.
2. Given the uncertainties caused by COVID-19, we agreed to extend the lease maturity date by one year to December 31, 2021. In consideration for the one-year extension, Brookdale agreed to consolidate the previous four separate lease agreements into a single consolidated master lease effective July 1, 2020. This new master lease provides three renewal options consisting of a four-year renewal option, a five-year renewal option and a 10-year renewal option. The notice period for the first renewal option is January 1, 2021 to April 30, 2021. The economic terms of rent remain the same as the consolidated rent terms under the previous four separate lease agreements. In addition, we have extended a $4,000 capital commitment which is available through December 31, 2021 at a 7% yield.
3. Assumes monthly payments of $900, the approximate amount of portfolio EBITDAR reported in June. An affiliate of Senior Lifestyle ("Senior Lifestyle") was provided deferred rent in the amount of $394 in April. Against a monthly contractual rent amount of $1,520, Senior Lifestyle paid $130 in May, $409 in June and $1,081 in July. As of June 30, 2020, the remaining outstanding balance of $2,755 is covered by a letter of credit and security deposit totaling $3,608. During 2Q20, we wrote off a total of $17,742 of straight-line rent receivable and lease incentives related to this master lease and will account for Senior Lifestyle on a cash basis effective July 2020. We are evaluating our options for the portfolio which may include re-leasing some or all of the properties and selling some of the properties.
4. Anthem is currently being accounted for on a cash basis. As a result of Anthem's default under its master lease in 2017, they are on a cash basis. We anticipate that Anthem will pay annual cash rent of $9,900 million through 2020. However, the COVID-19 pandemic may adversely impact Anthem's operating cashflow and ability to pay rent. We receive regular financial performance updates from Anthem and continue to monitor Anthem's performance obligations under the master lease agreement.

Privately Held	SNF/ALF/ILF	78 Properties	5 States
Other Rehab
Privately Held	SNF/ALF	22 Properties	1 State
NYSE: BKD	ILF/ALF/MC	741 Properties	45 States
Continuing Care
Privately Held	ALF/ILF/MC/SNF	181 Properties	27 States
Short Term Stays
Privately Held	Exclusively MC	11 Properties	4 States

Privately Held	SNF/ALF/ILF	13 Properties	2 States
Transitional Care
Privately Held	SNF/MC	84 Properties	10 States
Hospitals & Other Rehab
Privately Held	SNF/ALF/ILF	25 Properties	5 States
NYSE: GEN	SNF/ALF	Nearly 400	25 States
Senior Living	Properties
Privately Held	ALF/ILF/MC/SNF	22 Properties	3 States

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

15

PORTFOLIO DIVERSIFICATION - OPERATORS

(DOLLAR AMOUNTS IN THOUSANDS)

OPERATOR UPDATE

COVID-19 UPDATE

"We commend our operators for working tirelessly to provide care where it is needed the most, and have confidence that they will continue to meet this new normal with diligence, strength and grace."

- Wendy Simpson

Our rent deferral agreements generally require the deferred rent to be paid within 6 to 24 months.

LTC evaluated deferral requests with close attention to ongoing operations, rent coverage, corporate financial health and liquidity of the operator.

See page 15 for detailed operator rent disclosures.

SUPPLEMENTAL INFORMATION 2Q 2020

92%	2Q rent collected
99%	2Q rent collected excluding
Senior Lifestyle
	See page 15 for the Senior Lifestyle disclosure.
	2Q deferred and delinquent rent covered
95%	by cash security deposits/letter of
credit/guarantee
	* 90% covered by cash/letter of credit
	DEFERRED RENT BY PROPERTY TYPE

ALF/MC	89%
11%
SNF

• Of the $930 2Q rent deferred, approximately 89% relates to ALF/MC and 11% relates to SNF.
• Of the $930 2Q rent deferred, we subsequently received the repayment of $277 in 2Q and an additional $70 in July.
• Of the $653 2Q rent deferred outstanding, $339 is backed by security deposits/letter of credits.

PORTFOLIO 16

PORTFOLIO MATURITY

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

Near Term Lease Maturities:

• Four in 2021 with an annualized GAAP rent totaling $18.0 million (2)

• One in 2022 with an annualized GAAP rent totaling $0.8 million

As of June 30, 2020, approximately 93% of owned properties are covered under master leases and approximately 95% of rental revenues come from master leases or cross- default leases.

100.0%
80.0%				Leases			Loans
60.0%				(As a % of Total Annual Income)(1)
40.0%																		40.5%
																	19.5%
20.0%		11.2%												10.3%
									3.2%	5.7%	7.0%
		0.0%	0.5%		2.1%
0.0%		0.0%	0.0%			0.0%	0.0%	0.0%	0.0%
2021	2022	2023			2024	2025	2026	2027		Thereafter

1. Includes annualized GAAP rent for leased properties, except for Anthem and Senior Lifestyle, and annualized interest income from mortgage loans outstanding as of June 30, 2020.
2. Includes Brookdale. See page 15 for Brookdale disclosure.

SUPPLEMENTAL INFORMATION 2Q 2020

PORTFOLIO

17

ENTERPRISE VALUE

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS AND NUMBER OF SHARES)

		JUNE 30, 2020	CAPITALIZATION
DEBT
Bank borrowings - weighted average rate 2.2%	$	89,900
Senior unsecured notes, net of debt issue costs - weighted average rate 4.4% (1)		599,565
Total debt - weighted average rate 4.1%		689,465		31.8%

EQUITY		6/30/20
	No. of shares	Closing Price
Common stock	39,242,732	$ 37.67 (2)

Total Market Value

TOTAL VALUE

Add: Non-controlling interest

Less: Cash and cash equivalents

ENTERPRISE VALUE

Debt to Enterprise Value

Debt to Annualized Adjusted EBITDAre (3)

Net Debt to Annualized Adjusted EBITDAre (3)

1. Represents outstanding balance of $600,300, net of debt issue costs of $735.
2. Closing price of our common stock as reported by the NYSE on June 30, 2020.
3. See page 22 for reconciliation of annualized adjusted EBITDAre.

CAPITALIZATION

	1,478,274	68.2%	Common Stock
	1,478,274			68.2%
$	2,167,739	100.0%
	8,411			Total Debt
	(50,370)
			31.8%
$	2,125,780
	32.4%
	4.6x
	4.3x

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

18

DEBT METRICS

(DOLLAR AMOUNTS IN THOUSANDS)

LINE OF CREDIT LIQUIDITY

$600,000

$510,100	$506,100	$488,000	$503,500
$500,000
$400,000
$300,000
$200,000
$100,000
	$93,900	$112,000	$96,500
$89,900
$-
2Q20	2019	2018	2017
		Balance	Available

			LEVERAGE RATIOS						COVERAGE RATIOS
50.0%							8.0
37.4%	37.2%		37.6%
40.0%	35.2%			6.0
			32.4%	28.0% 28.0% 28.0%	4.3x	4.5x	4.3x	4.4x	4.9x	4.9x	4.7x	4.9x
30.0%
					4.0
20.0%
						2.0
10.0%
						0.0
0.0%
							Net Debt to	Adjusted EBITDAre/
Debt to Gross Asset Value	Debt to Total Enterprise Value
		Adjusted EBITDAre		Fixed Charges
	2Q20		2019	2018	2017		2Q20 Annualized	2019	2018		2017
	SUPPLEMENTAL INFORMATION 2Q 2020									FINANCIAL	19

DEBT MATURITY

(AS OF JUNE 30, 2020, DOLLAR AMOUNTS IN THOUSANDS)

DEBT STRUCTURE

Unsecured Line of Credit

13.0%

Senior Unsecured Notes

87.0%

$600,000
$500,000							Unsecured Line	Senior Unsecured Notes
$400,000
$300,000																							$211,000
$200,000					$89,900
$100,000																$51,500	$54,500
		$40,160	$47,160	$48,160		$49,160	$0 $49,160	$49,500
	$0	$0		$0			$0		$0		$0		$0
$-
2020		2021		2022				2023			2024			2025		2026		2027		Thereafter

1. Reflects scheduled principal payments.
2. Includes debt issue costs which are excluded in the senior unsecured notes balance on our Consolidated Balance Sheets shown on page 24.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

20

FINANCIAL DATA SUMMARY

(DOLLAR AMOUNTS IN THOUSANDS)

NON-CASH REVENUE COMPONENTS

		2Q20				3Q20(1)				4Q20(1)			1Q21(1)			2Q21(1)
Straight-line rent	$	634	(2)(3)(4)	$	216	(2)	$	(38)	(2)	$	(37)	(2)	$	(769)	(2)(3)
Amortization of lease incentives		(293)	(4)		(104)				(104)				(104)				(104)
Effective interest		1,555				1,564				1,491				1,442				1,437
Net	$	1,896			$	1,676			$	1,349			$	1,301			$	564

1. Includes outstanding gross bank borrowings and senior unsecured notes, net of debt issue costs.

1. For leases and loans in place at June 30, 2020, assuming no renewals, modifications or replacements and no new investments are added to our portfolio.
2. Change from prior quarter relates to COVID-19 deferred rent and repayments. See page 16 for disclosures.
3. Includes repayment of other deferred rent per the lease agreement.
4. Includes a one-time lease incentive write-off related to Senior Lifestyle. See page 15 for disclosure.

COMPONENTS OF RENTAL INCOME

SUPPLEMENTAL INFORMATION 2Q 2020

1. Decrease due to the sale of Preferred Care portfolio, partially offset by rent increases from acquisitions.
2. Decrease due to Senior Lifestyle straight-line rent receivable write-off and normal amortization. See page 15 for disclosure.
3. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20. See page 15 for disclosure.
4. Represents the write-off of straight-line rent receivable due to a lease termination and transition of two senior housing communities to a new operator.

FINANCIAL 21

FINANCIAL DATA SUMMARY

(DOLLAR AMOUNTS IN THOUSANDS)

RECONCILIATION OF ANNUALIZED ADJUSTED EBITDAre AND FIXED CHARGES

	THREE MONTHS ENDED						FOR THE YEAR ENDED
		6/30/20				12/31/2019				12/31/2018			12/31/2017
Net income	$	1,952		$	80,872		$	155,076		$	87,340
Less: Gain on sale of real estate, net		(189)				(2,106)					(70,682)			(3,814)
Add: Loss on unconsolidated joint ventures		620	(1)			-					-		-
Add: Impairment charges		-				5,500	(1)				-		1,880	(2)
Add: Interest expense		7,546				30,582					30,196			29,949
Add: Depreciation and amortization		9,797				39,216					37,555			37,610
EBITDAre		19,726				154,064					152,145			152,965
Add/(less): Non-recurringone-time items		17,742	(3)			(1,535) (4)				(3,074) (5)			(842) (5)
Adjusted EBITDAre
$	37,468			$	152,529			$	149,071		$	152,123
Interest expense	$	7,546		$	30,582		$	30,196		$	29,949
Add: Capitalized interest		86				608					1,248			908
Fixed charges (6)	$	7,632		$	31,190		$	31,444		$	30,857
Annualized Adjusted EBITDAre	$	149,872
Annualized Fixed Charges	$	30,528
Debt (net of debt issue costs)	$	689,465		$	693,388		$	645,029		$	667,502
Net Debt (debt less cash)	$	639,095		$	689,144		$	642,373		$	662,289
Debt to Adjusted EBITDAre		4.6x	*			4.5x					4.3x		4.4x
Net Debt to Adjusted EBITDAre		4.3x	*			4.5x					4.3x		4.4x
Adjusted EBITDAre to Fixed Charges		4.9x	*			4.9x					4.7x		4.9x

• Represents annualized 2Q20 results except for gain on sale of real estate, loss on unconsolidated joint ventures and non-recurring items.

1. In 4Q19, we wrote down our investment in an unconsolidated joint venture ("JV") to its estimated fair value as a result of the JV entering into a contract to sell the properties comprising the JV. In 2Q20, the JV sold the properties and we incurred an additional loss of $620.
2. Represents net write-off of $1,880 of straight-line rent and other receivables related to two properties in Overland Park and Wichita, KS.
3. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20. See page 15 for disclosure.
4. Represents $2,111 gain from property insurance proceeds related to a property in Texas and $1,350 deferred rent repayment from an operator offset by $1,926 write-off of straight-line rent due to a lease termination and transition of two seniors housing communities to a new operator.
5. Represents net write-off of earn-out liabilities and the related lease incentives.
6. Given we do not have preferred stock, our fixed-charge coverage ratio and interest coverage ratio are the same.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

22

INCOME STATEMENT DATA

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

THREE MONTHS ENDED

JUNE 30,

2020 2019

SIX MONTHS ENDED

JUNE 30,

2020 2019

		(unaudited)				(audited)
Revenues
Rental income	$	20,275	$	38,277	$	58,310	$	75,901
Interest income from mortgage loans		7,820			7,351			15,597			14,662
Interest and other income		386			638			984			1,159
Total revenues		28,481			46,266			74,891			91,722
Expenses
Interest expense		7,546			7,710			15,256			15,177
Depreciation and amortization		9,797			9,860			19,466			19,467
Provision for doubtful accounts		-			84			1			167
Transaction costs		64			200			134			200
Property tax expense		4,111			3,910			8,334			8,296
General and administrative expenses		4,580			4,596			9,680			9,167
Total expenses		26,098			26,360			52,871			52,474
Other Operating Income
Gain on sale of real estate, net		189			500			44,043			500
Operating Income		2,572			20,406			66,063			39,748
Loss on unconsolidated joint ventures		(620)			-			(620)			-
Income from unconsolidated joint ventures		-			128			231			1,213
Net Income		1,952			20,534			65,674			40,961
Income allocated to non-controlling interests		(82)			(88)			(171)			(169)
Net income attributable to LTC Properties, Inc.		1,870			20,446			65,503			40,792
Income allocated to participating securities		(97)			(94)			(278)			(186)
Net income available to common stockholders	$	1,773	$	20,352	$	65,225	$	40,606
Earnings per common share:
Basic		$0.05			$0.51			$1.66			$1.03
Diluted		$0.05			$0.51			$1.66			$1.02
Weighted average shares used to calculate earnings per common share:
Basic		39,055			39,577			39,298			39,555
Diluted		39,137			39,769			39,380			39,747
Dividends declared and paid per common share		$0.57			$0.57			$1.14			$1.14

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

23

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

		JUNE 30, 2020		DECEMBE R 31, 2019
ASS E TS		(unaudited)			(audited)
Investments:
Land	$	127,774	$	126,703
Buildings and improvements		1,317,917			1,295,899
Accumulated depreciation and amortization		(330,098)			(312,642)
Operating real estate property, net		1,115,593			1,109,960
Properties held-for-sale, net of accumulated depreciation: 2020-$0;2019-$35,113		-			26,856
Real property investments, net		1,115,593			1,136,816
Mortgage loans receivable, net of loan loss reserve: 2020-$2,580;2019-$2,560		256,069			254,099
Real estate investments, net		1,371,662			1,390,915
Notes receivable, net of loan loss reserve: 2020-$163;2019-$181		16,093			17,927
Investments in unconsolidated joint ventures		1,023			19,003
Investments, net		1,388,778			1,427,845
Other assets:
Cash and cash equivalents		50,370			4,244
Debt issue costs related to bank borrowings		1,766			2,164
Interest receivable		29,701			26,586
Straight-line rent receivable		29,619			45,703
Lease incentives		2,471			2,552
Prepaid expenses and other assets		7,467			5,115
Total assets	$	1,510,172		$	1,514,209
LIABILITIE S
Bank borrowings	$	89,900	$	93,900
Senior unsecured notes, net of debt issue costs: 2020-$735;2019-$812		599,565			599,488
Accrued interest		4,587			4,983
Accrued expenses and other liabilities		28,815			30,412
Total liabilities		722,867			728,783
EQUITY
Stockholders' equity:
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2020-39,243;2019-39,752		392			398
Capital in excess of par value		849,326			867,346
Cumulative net income		1,358,985			1,293,482
Cumulative distributions		(1,429,809)			(1,384,283)
Total LTC Properties, Inc. stockholders' equity		778,894			776,943
Non-controlling interests		8,411			8,483
Total equity		787,305			785,426
Total liabilities and equity	$	1,510,172		$	1,514,209

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

24

FUNDS FROM OPERATIONS

(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

RECONCILIATION OF FFO AND FAD

		THREE MONTHS ENDED			SIX MONTHS ENDED
		JUNE 30,				JUNE 30,
		2020		2019			2020		2019
GAAP net income available to common stockholders	$	1,773	$	20,352	$	65,225	$	40,606
Add: Depreciation and amortization		9,797		9,860			19,466		19,467
Less: Gain on sale of real estate, net		(189)		(500)			(44,043)		(500)
Add: Loss on unconsolidated joint ventures		620		-			620		-
NAREIT FFO attributable to common stockholders		12,001		29,712			41,268		59,573
Add: Non-recurring items		17,742	(1)	-			17,742	(1)	576	(2)
FFO attributable to common stockholders excluding non-recurring income	$	29,743	$	29,712		$	59,010	$	60,149
NAREIT FFO attributable to common stockholders	$	12,001	$	29,712	$	41,268	$	59,573
Non-cash income:
Less: Straight-line rental income		(634)		(1,275)			(1,473)		(2,513)
Add: Amortization of lease costs		293	(1)	94			394	(1)	181
Add: Other non-cash contra revenue		17,557	(1)	-			17,557	(1)	1,926	(3)
Less: Effective interest income from mortgage loans		(1,555)		(1,418)			(3,078)		(2,833)
Less: Deferred income from unconsolidated joint ventures		-		(6)			-		(13)
Net non-cash income		15,661		(2,605)			13,400		(3,252)
Non-cash expense:
Add: Non-cash compensation charges		1,762		1,623			3,539		3,312
Less: Capitalized interest		(86)		(73)			(277)		(333)
Net non-cash expense		1,676		1,550			3,262		2,979
Funds available for distribution (FAD)
	29,338		28,657			57,930		59,300
Less: Non-recurring income		-		-			-		(1,350) (4)
Funds available for distribution (FAD) excluding non-recurring income	$	29,338	$	28,657	$	57,930	$	57,950
NAREIT Diluted FFO attributable to common stockholders per share		$0.31		$0.75			$1.05		$1.50

1. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20. See page 15 for disclosure.
2. Represents $1,926 write-off of straight-line rent due to a lease termination and the properties were transitioned to another lease and $1,350 of deferred rent repayment from an operator.
3. Represents $1,926 write-off of straight-line rent due to a lease termination and the properties were transitioned to another lease.
4. Represents $1,350 deferred rent repayment from an operator.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

25

FUNDS FROM OPERATIONS

(UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

RECONCILIATION OF FFO PER SHARE

FOR THE THREE MONTHS ENDED JUNE 30,

FFO/FAD attributable to common stockholders Non-recurringone-time items

FFO/FAD attributable to common stockholders excluding non-recurring income

Effect of dilutive securities:

Participating securities

Diluted FFO/FAD assuming conversion

			FFO				FAD
	2020			2019		2020		2019
$	12,001		$	29,712	$	29,338	$	28,657
	17,742	(1)		-		-		-
	29,743			29,712		29,338		28,657
	97			94		97		94
$	29,840		$	29,806	$	29,435	$	28,751

Shares for basic FFO/FAD per share	39,055	39,577	39,055	39,577
Effect of dilutive securities:
Stock options	-	5	-	5
Performance-based stock units	82	187	82	187
Participating securities	172	165	172	165
Shares for diluted FFO/FAD per share	39,309	39,934	39,309	39,934

FOR THE SIX MONTHS ENDED JUNE 30,

FFO/FAD attributable to common stockholders Non-recurringone-time items

FFO/FAD attributable to common stockholders excluding non-recurring income

Effect of dilutive securities:

Participating securities

Diluted FFO/FAD assuming conversion

Shares for basic FFO/FAD per share

Effect of dilutive securities:

Stock options

Performance based stock units

Participating securities

Shares for diluted FFO/FAD per share

			FFO					FAD
	2020			2019			2020		2019
$	41,268		$	59,573		$	57,930	$	59,300
	17,742	(1)		576	(2)		-		(1,350) (3)
	59,010			60,149			57,930		57,950
	-			186			-		186
$	59,010		$	60,335		$	57,930	$	58,136
	39,298			39,555			39,298		39,555
	-			5			-		5
	82			187			82		187
	-			161			-		161
	39,380			39,908			39,380		39,908

1. Represents $17,557 write-off of straight-line rent receivable and $185 write-off of lease incentives relating to Senior Lifestyle's master lease as a result of Senior Lifestyle's failure to pay full rent during 2Q20.
2. Represents $1,350 deferred rent repayment from an operator and $1,926 write-off of straight-line rent due to a lease termination and transition of two senior housing communities to a new operator.
3. Represents $1,350 deferred rent repayment from an operator.

SUPPLEMENTAL INFORMATION 2Q 2020

FINANCIAL

26

GLOSSARY

Assisted Living Communities ("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 seniors housing properties serving elderly persons who require assistance with activities of daily living, but do not require the constant supervision skilled nursing properties provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs.

Contractual Lease Rent: Rental revenue as defined by the lease agreement between us and the operator for the lease year.

Earnings Before Interest, Tax, Depreciation and Amortization for Real Estate ("EBITDAre"): As defined by the National Association of Real Estate Investment Trusts ("NAREIT"), EBITDAre is calculated as net income (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense,

1. real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate,

1. gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated partnerships and joint ventures.

Funds Available for Distribution ("FAD"): FFO excluding the effects of straight-line rent, amortization of lease costs, effective interest income, deferred income from unconsolidated joint ventures, non-cash compensation charges, capitalized interest and non-cash interest charges.

Funds From Operations ("FFO"): As defined by NAREIT, net income available to common stockholders (computed in accordance with U.S. GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

GAAP Lease Yield: GAAP rent divided by the sum of the purchase price and transaction costs.

GAAP Rent: Total rent we will receive as a fixed amount over the initial term of the lease and recognized 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 depreciation deductions. Gross Investment is commonly referred to as undepreciated book value.

Independent Living Communities ("ILF"): Seniors housing properties offering a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers. ILFs are also known as retirement communities or seniors apartments.

Interest Income: Represents interest income from mortgage loans and other notes.

Licensed Beds/Units: The number of beds and/or units that an operator is authorized to operate at seniors housing and long-term care properties. Licensed beds and/or units may differ from the number of beds and/or units in service at any given time.

Memory Care Communities ("MC"): Seniors housing properties offering specialized options for seniors with Alzheimer's disease and other forms of dementia. These facilities offer dedicated care and specialized programming for various conditions relating to memory loss in a secured environment that is typically smaller in scale and more residential in nature than traditional assisted living facilities. These facilities have staff available 24 hours a day to respond to the unique needs of their residents.

Metropolitan Statistical Areas ("MSA"): Based on the U.S. Census Bureau, MSA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A metro area contains a core urban area of 50,000 or more population. MSAs 1 to 31 have a population of 20.3M - 2.1M. MSAs 32 to 100 have a population of 2.1M - 0.6M. MSAs less than 100 have a population of 0.5M - 55K. Cities in a Micro-SA have a population of 216K - 13K. Cities not in a MSA has population of less than 100K.

Mezzanine: In certain circumstances, the Company strategically allocates a portion of its capital deployment toward mezzanine loans to grow relationships 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 return 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/corporate guarantees. Mezzanine loans can be recorded for GAAP purposes as either a loan or joint venture depending upon specifics of the loan terms and related credit enhancements.

SUPPLEMENTAL INFORMATION 2Q 2020

GLOSSARY

27

GLOSSARY

Micropolitan Statistical Areas ("Micro-SA"): Based on the U.S. Census Bureau, Micro-SA is a geographic entity defined by the Office of Management and Budget (OMB) for use by Federal statistical agencies in collecting, tabulating, and publishing Federal statistics. A micro area contains an urban core of at least 10,000 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 service reserves. When possible, LTC attempts to negotiate a purchase option to acquire the property at a future time and lease the property back to the borrower.

Net Real Estate Assets: Gross real estate investment less accumulated depreciation. Net Real Estate Asset is commonly referred to as Net Book Value ("NBV").

Non-cashRental Income: Straight-line rental income and amortization of lease inducement.

Non-cashCompensation Charges: Vesting expense relating to stock options and restricted stock.

Normalized EBITDAR Coverage: The trailing twelve month's earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, and rent divided by the operator's contractual lease rent. Management fees are imputed at 5% of revenues.

Normalized EBITDARM Coverage: The trailing twelve month's earnings from the operator financial statements adjusted for non-recurring, infrequent, or unusual items and before interest, taxes, depreciation, amortization, rent, and management fees divided by the operator's contractual lease rent.

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: Property 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 percentage is calculated from property level operator financial 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).

Rental Income: Represents GAAP rent net of amortized lease inducement cost.

Same Property Portfolio ("SPP"): Same property statistics allow for the comparative evaluation of performance across a consistent population of LTC's leased property portfolio and the Prestige Healthcare mortgage loan portfolio. Our SPP is comprised of stabilized properties occupied and operated throughout the duration of the quarter-over-quarter comparison periods presented (excluding assets sold and assets held-for-sale). Accordingly, a property must be occupied and stabilized for a minimum of 15 months to be included in our SPP.

Skilled Nursing Properties ("SNF"): Seniors housing properties providing restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many SNFs provide ancillary services that include occupational, 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 stabilized upon the earlier of achieving certain occupancy thresholds (e.g. 80% for SNFs and 90% for ALFs) and, as applicable, 12 months from the date of acquisition/lease transition 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, or properties acquired in lease-up.

Under Development Properties ("UDP"): Development projects to construct seniors housing properties.

SUPPLEMENTAL INFORMATION 2Q 2020

GLOSSARY

28