LTC Properties, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues increased to $115.2 million for the three months ended September 30, 2026, from $69.3 million in the same period in 2025.
• Net income available to common stockholders increased to $346.4 million for the quarter ended September 30, 2026, compared to a loss of $20.1 million in 2025.
• Diluted earnings per common share were $6.39 for the quarter ended September 30, 2026, versus a loss of $0.44 in 2025.
• Nareit FFO available to common stockholders was $40.1 million for the quarter ended September 30, 2026, compared to a loss of $10.4 million in 2025.
• Diluted Nareit FFO per share was $0.74 for the quarter ended September 30, 2026, versus a loss of $0.23 in 2025.
• Core FFO available to common stockholders was $38.7 million for the quarter ended September 30, 2026, compared to $32.0 million in 2025.
• Diluted Core FFO per share increased to $0.71 for the quarter ended September 30, 2026, from $0.69 in 2025.
• Funds available for distribution (FAD) were $40.9 million for the quarter ended September 30, 2026, compared to $35.7 million in 2025.
• Diluted FAD per share was $0.75 for the quarter ended September 30, 2026, versus $0.77 in 2025.
• Core FAD was $39.5 million for the quarter ended September 30, 2026, compared to $33.6 million in 2025.
• Diluted Core FAD per share increased to $0.73 for the quarter ended September 30, 2026, from $0.72 in 2025.
• Net operating income (NOI) for the quarter ended September 30, 2026, was $62.5 million, compared to $49.8 million in 2025.
• SHOP NOI for the quarter ended September 30, 2026, was $19.7 million, compared to $4.8 million in 2025.
• Total assets were $2.76 billion as of September 30, 2026, compared to $2.06 billion as of December 31, 2025.
• Cash and cash equivalents were $183.0 million as of September 30, 2026, compared to $14.4 million as of December 31, 2025.
• Revolving line of credit outstanding was $430 million as of September 30, 2026, compared to $253 million as of December 31, 2025.
• Total liabilities were $1.05 billion as of September 30, 2026, compared to $900 million as of December 31, 2025.
• Total equity was $1.71 billion as of September 30, 2026, compared to $1.16 billion as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $106.4 million, compared to $98.0 million in 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $218.8 million, compared to $317.1 million in 2025.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $280.9 million, compared to $227.6 million in 2025.

Guidance and Future Outlook:

• 2026 SHOP investment mid-point guidance increased to $1 billion from $900 million.
• 2026 SHOP NOI guidance narrowed to a range of $73.5 million to $76.4 million, from $71.2 million to $79.9 million.
• 2026 full-year diluted earnings per common share guidance reaffirmed at $8.08 to $8.10.
• 2026 full-year diluted Core FFO per share guidance reaffirmed at $2.76 to $2.78.
• 2026 full-year diluted Core FAD per share guidance reaffirmed at $2.83 to $2.85.
• Core 27-property SHOP portfolio NOI guidance narrowed to a range of $53.5 million to $55.5 million (mid-point $54.5 million).
• Proforma NOI growth for the core SHOP portfolio is expected to be approximately 13.0% over 2025 proforma NOI.
• Occupancy growth for the core SHOP portfolio is expected to be approximately 70 basis points from 2025 proforma average occupancy of approximately 89.7%.
• Projected increases in average revenue per occupied room per month (RevPOR) are approximately 5.1%.
• Projected increases in average expense per occupied room per month (ExPOR) are approximately 2.8%.
• SHOP FAD capital expenditures are estimated to decrease to a range of $3.8 million to $4.2 million.
• SHOP non-FAD capital expenditures are estimated to increase to $14.1 million.
• General and administrative costs are estimated to narrow to a range of $33.1 million to $33.9 million.
• Transaction costs are expected to be in the range of $3.6 million to $3.8 million for the full year.
• Gross investment estimates increased by $100 million at the mid-point to $1.0 billion.
• Asset sales and loan payoffs projections are $730 million, including $550.2 million to date and $179.8 million expected in the fourth quarter.

Business Segments and Product Lines:

• The Seniors Housing Operating Portfolio (SHOP) now represents 45% of the company's annualized net operating income.
• SHOP acquisitions reached nearly $950 million through October 2026, surpassing the 2026 mid-point acquisition target.
• SHOP portfolio consists of 50 communities managed by 14 operators as of November 3, 2026.
• 12 of the 14 SHOP operators are new LTC relationships.
• SHOP acquisitions total $1.3 billion, representing 53% of gross investments.
• Average property vintage for the SHOP portfolio is 9 years.
• 60% of SHOP properties are located in primary markets designated by the National Investment Center for Seniors Housing & Care (NIC).
• Third quarter SHOP acquisitions included 12 communities across seven states with 1,218 independent living, assisted living, and memory care units.
• Third quarter SHOP acquisitions had an average year-one cap rate of approximately 6.9%.
• Third quarter SHOP acquisitions had an average anticipated unlevered IRR in the low- to mid-teens.
• Fourth quarter SHOP acquisitions include four communities across four states with 512 independent living, assisted living, and memory care units.
• Fourth quarter SHOP acquisitions have an average year-one cap rate of approximately 6.6%.
• Fourth quarter SHOP acquisitions have an average anticipated unlevered IRR in the low- to mid-teens.
• Asset sales in the third quarter included 17 skilled nursing centers across three states for $304 million, generating a $195 million gain on sale.
• Asset sales in the third quarter included 17 seniors housing communities across four states for $160 million, generating a $129 million gain on sale.

Market and Competitive Landscape:

• The company specializes in seniors housing and health care properties, with nearly 170 properties throughout the United States.
• Based on gross real estate investments, 80% of the company's assets are seniors housing communities, with the remainder being skilled nursing centers.
• The SHOP strategy is transforming the portfolio and building a scalable operating platform to capitalize on new growth opportunities.

Risks and Challenges:

• Operational and legal risks and liabilities under the new SHOP segment.
• Dependence on third-party independent operators to successfully manage and operate SHOP communities.
• Dependence on operators for revenue and cash flow.
• Government regulation of the health care industry and changes in federal, state, or local laws limiting REIT investments.
• Federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid.
• Required regulatory approvals for operation of health care facilities.
• Failure to comply with applicable law or regulations for the operation of health care facilities.
• Adequacy of insurance coverage maintained by the company's operators.
• Reliance on a few major operators and ability to find suitable replacement operators.
• Ability to renew leases or enter into favorable terms of renewals or new leases.
• Impact of inflation.
• Operator financial or legal difficulties.
• Sufficiency of collateral securing mortgage loans.
• Impairment of real estate investments.
• Relative illiquidity of real estate investments.
• Ability to develop and complete construction projects.
• Ability to invest cash proceeds for health care properties.
• Failure to qualify as a REIT.
• Ability to grow if access to capital is limited.
• Failure to maintain or increase the dividend.

Management Commentary and Tone:

• Clint Malin, Co-CEO, stated that the SHOP strategy is delivering and reshaping LTC's future by transforming the portfolio, building a scalable operating platform, and strengthening the ability to capitalize on new growth opportunities.
• Malin noted that SHOP acquisitions have surpassed the 2026 mid-point target, increasing earnings power and extending the runway for growth.
• Malin expressed confidence in LTC's ability to further differentiate itself as a growth-oriented seniors housing REIT.
• Pam Kessler, Co-CEO, stated that the progress achieved reflects the strength of the vision and the team's ability to execute.
• Kessler noted that while goals were ambitious, the company has successfully built a scalable platform generating considerable momentum.
• Kessler believes LTC is better positioned to drive sustainable earnings growth, increase portfolio resilience, and build ongoing shareholder value.

Other Key Points:

• Entered into a new $500 million equity distribution agreement in the third quarter to replace the existing $400 million agreement.
• Total proforma liquidity was $903 million as of the third quarter.
• Cash on hand was $11 million.
• $490 million was available under the unsecured revolving line of credit with $410 million outstanding.
• $402 million was available under the Company's ATM.
• A lease termination fee was received in the third quarter related to the sale of leased properties.
• A prior year non-cash write-off of straight-line effective interest impacted the current year's results.
• An impairment charge was recorded in the third quarter of 2026.
• Conference call scheduled for November 4, 2026, at 8:00 a.m. Pacific / 11:00 a.m. Eastern.