LTC PROPERTIES INC (LTC)

CIK: 0000887905. SIC: 6798 Real Estate Investment Trusts. Latest 10-K as of: 2026-02-24.

SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts

SEC company page: https://www.sec.gov/edgar/browse/?CIK=887905. Latest filing source: 0001104659-26-019178.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000887905.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000887905.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001104659-26-056329.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-06. Report date: 2026-03-31.

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

​

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act 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,” “could,” “would,” “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, operational and legal risks and liabilities under our new SHOP segment; our dependence on the ability of our third-party independent operators to successfully manage and operate our SHOP communities; our dependence on our operators for revenue and cash flow; government regulation of the health care industry; changes in federal, state, or local laws limiting real estate investment trust (“REIT”) investments in the health care sector; 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; a failure to comply with applicable law or regulations for the operation of health care facilities; the adequacy of insurance coverage maintained by our operators; our reliance on a few major operators; our ability to find suitable replacement operators for our SHOP communities; our ability to renew leases or enter into favorable terms of renewals or new leases; the impact of inflation; operator financial or legal difficulties; the sufficiency of collateral securing mortgage loans; an impairment of our real estate investments; the relative illiquidity of our real estate investments; our ability to develop and complete construction projects; our ability to invest cash proceeds for health care properties; a failure to qualify as a REIT; our ability to grow if access to capital is limited; and a failure to maintain or increase our dividend. 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” contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 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. Although our 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 may differ materially from any forward-looking statements due to the risks and uncertainties of such statements.

Executive Overview

Company Overview

We are a health care real estate investment trust (“REIT”) that invests in seniors housing and health care properties through our owned seniors housing operating portfolio (“SHOP”), triple-net leases and joint ventures. We have been operating since August 1992.

Our primary seniors housing and health care property classifications include skilled nursing centers (“SNF”), assisted living communities (“ALF”), independent living communities (“ILF”), memory care communities (“MC”) and combinations thereof. We also have investments in other (“OTH”) types of

34

Table of Contents

properties, such as land parcels, projects under development (“UDP”) and a behavioral health care hospital. For purposes of this quarterly report and other presentations, we generally include ILF, ALF, MC, and combinations thereof in the seniors housing communities classification (“SH”).

Substantially all of our revenues and sources of cash flows from operations are derived from rents from operating leases, resident fees and services, interest earned on financing receivables, interest earned on outstanding loans receivable and income from investments in unconsolidated joint ventures. Income from our investments represent our primary source of liquidity to fund distributions and are dependent upon the performance of our SHOP communities and operators on their lease and loan obligations and the rates earned thereon. To the extent that the operators experience operating difficulties and are unable to generate sufficient cash to make payments to us, there could be a material adverse impact on our consolidated results of operations, liquidity and/or financial condition. To mitigate this risk, we monitor our investments through a variety of methods determined by investment type, property type and operator. Our monitoring process includes periodic review of financial statements for each facility, periodic review of operator credit, scheduled property inspections and review of covenant compliance.

In addition to our monitoring and research efforts, we also structure our investments to help mitigate payment risk. Some operating leases and loans are credit enhanced by guaranties and/or letters of credit. In addition, operating leases are typically structured as master leases and loans are generally cross-defaulted and cross-collateralized with other loans, operating leases or agreements between us and the operator and its affiliates.

We conduct and manage our business as two operating segments, for reporting and decision-making purposes: i) real estate investments (“Real Estate Investments”) segment which consists of owned real properties subject to non-cancelable triple-net leases (“NNN” or “Triple-Net Portfolio”), financing receivables, mortgage loans, notes receivable and unconsolidated joint ventures and ii) SHOP segment.

Business and Investment Strategy

Since commencing operations in August 1992, our objective has been 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 goal is to invest in properties that provide opportunity for additional value and current returns to our stockholders and diversify our investment portfolio by geographic location and operator.

During the second quarter of 2025, we began utilizing the structure authorized by the REIT Investment Diversification and Empowerment Act of 2007 (Commonly referred to as “RIDEA”) as permitted by the Housing and Economic Recovery Act of 2008. Under RIDEA, we are permitted to participate directly in the cash flow of qualified healthcare properties (compared to receiving solely contractual rental income) and have certain oversight approval rights and the right to review operational and financial reporting information. However, our independent third-party operators ultimately control the day-to-day operations of the property, pursuant to the terms of our management agreements. Offering RIDEA structures represents a further aspect of our traditional strategy of investing through vehicles such as non-cancelable triple-net operating leases, mortgage loans, and structured finance. We believe that RIDEA structures provide us with additional investment and higher growth opportunities.

We also have identified opportunities to convert existing triple-net leases into our new SHOP segment, and in certain instances have completed these conversions. To develop and implement RIDEA structures, we may need to continue to commit financial and operational resources. While we anticipate that adding RIDEA transactions will be positive for our business model, our ability to succeed in this new segment will be determined by numerous factors, including our ability to identify suitable investments

35

Table of Contents

and our relationship with operators of our SHOP communities. We rely on the SHOP operator’s personnel, expertise, resources, good faith, and judgement to manage our SHOP communities efficiently and effectively. We also rely on the SHOP operators to set appropriate resident fees, provide accurate property-level financial results for our properties in a timely manner, and otherwise operate our SHOP communities in compliance with the terms of our management agreements and all applicable laws and regulations.

Depending upon the availability and cost of external capital, we anticipate making additional investments in seniors housing communities. New investments are generally funded from cash on hand, proceeds from periodic asset sales, temporary borrowings under our unsecured revolving line of credit and internally generated cash flows. Our investments generate internal cash from rent, resident fees and services, interest from financing receivables and interest receipts and principal payments on loan receivables and income from unconsolidated joint ventures. Permanent financing for future investments, which replaces funds drawn under our unsecured revolving line of credit, may be provided through a combination of public and private offerings of debt and equity securities and secured and unsecured debt financing. The timing, source and amount of cash flows provided by financing activities and used in investing activities are sensitive to the capital markets’ environment, especially to changes in interest rates. Changes in the capital markets’ environment may impact the availability of cost-effective capital.

We believe our business model has enabled and will continue to enable us to maintain the integrity of our property investments, including in response to financial difficulties that may be experienced by operators and the variability of cash flow from our SHOP segment. Traditionally, we have taken a conservative approach to managing our business, choosing to maintain liquidity and exercise patience until favorable investment opportunities arise.

​

36

Table of Contents

Real Estate Portfolio Overview

The following tables summarize our real estate investment portfolio as of March 31, 2026 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2026

​

​

​

​

​

Number of 

​

​

​

​

Percentage

​

​

Rental Income

​

​

Percentage

​

​

​

​

Number of

​

SNF

​

SH

​

Gross

​

of 

​

​

and Resident

​

​

of Total

​

​

Owned Properties

​

Properties (1)

​

Beds

​

Units

​

Investments

​

Investments

​

​

Fees and Services

​

​

Revenues

​

​

Triple-Net Portfolio:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Seniors Housing

​

52

​

—

​

3,130

​

$

479,641

​

19.6

%

​

$

9,755

​

​

10.8

%

​

Skilled Nursing

​

43

​

5,217

​

236

​

​

528,302

​

21.7

%

​

​

14,018

​

​

15.5

%

​

Other (2)

​

1

​

118

​

—

​

​

12,005

​

0.5

%

​

​

298

​

​

0.3

%

​

Subtotal: Triple-Net Portfolio

​

96

​

5,335

​

3,366

​

​

1,019,948

​

41.8

%

​

​

24,071

(4)​

​

26.6

%

​

SHOP:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Seniors Housing

​

30

​

—

​

2,555

​

​

701,612

​

28.8

%

​

​

49,585

(5)​

​

54.8

%

​

Total Owned Properties

​

12

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-24. Report date: 2025-12-31.

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Executive Overview

Business and Investment Strategy

We are a real estate investment trust (“REIT”) that invests in seniors housing and health care properties through sale-leasebacks, financing leases, mortgage financing, joint ventures and structured finance solutions including preferred equity and mezzanine lending. Additionally, during the second quarter of 2025, we began utilizing the structure authorized by the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”) as permitted by the Housing and Economic Recovery Act of 2008 and established a seniors housing operating portfolio (“SHOP”).

Under a typical RIDEA structure, we have certain oversight approval rights and the right to review operational and financial reporting information, but our independent third-party operators ultimately control the day-to-day operations of the property, pursuant to the terms of our management agreements. Offering RIDEA structures represent a further aspect of our traditional strategy of investing through vehicles such as non-cancelable triple-net operating leases, mortgage loans, and structured finance. We believe that RIDEA structures provide us with additional investment opportunities. We also have identified opportunities to cooperatively convert existing triple-net leases into our new SHOP segment, and in certain instances have completed these conversions. To develop and implement RIDEA structures, we may need to continue to commit financial and operational resources. While we anticipate that adding RIDEA transactions will be positive for our business model, our ability to succeed in this new segment will be determined by numerous factors, including our ability to identify suitable investments and our relationship with operators of our SHOP communities. We rely on the SHOP operator’s personnel, expertise, resources, good faith, and judgement to manage our SHOP communities efficiently and effectively. We also rely on the SHOP operators to set appropriate resident fees, provide accurate property-level financial results for our properties in a timely manner, and otherwise operate our SHOP communities in compliance with the terms of our management agreements and all applicable laws and regulations.

We seek 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 classifications include skilled nursing facilities (“SNF”), assisted living facilities (“ALF”), independent living facilities (“ILF”), memory care communities (“MC”) and combinations thereof. We also invest in other (“OTH”) types of properties, such as land parcels, projects under development (“UDP”) and behavioral health care hospitals. 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 classification and form of investment.

We conduct and manage our business as two operating segments for internal reporting and internal decision-making purposes: real estate investments (“Real Estate Investments”) segment which consists of our portfolio of owned real properties subject to non-cancelable triple-net leases (“NNN” or “Triple-Net Portfolio”), financing receivables, mortgage loan receivables, notes receivable and unconsolidated joint ventures, and our SHOP segment consists of seniors housing communities that are managed on our behalf by independent operators pursuant to the terms of separate management agreements. For purposes of this Annual Report on Form 10-K and other presentations, we generally include ALF, ILF, and MC in the seniors housing communities (“SH”) property classification. We have been operating since August 1992.

35

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Table of Contents

The following graph summarizes our gross investments as of December 31, 2025:

Substantially all of our revenues and sources of cash flows from operations are derived from operating lease rentals, resident fees and services, interest earned on financing receivables, interest earned on outstanding mortgage loans receivable, interest earned on outstanding notes receivable and income from investments in unconsolidated joint ventures. Our investments in owned real properties, financing leases, mortgage loans, mezzanine loans and preferred equity investments represent our primary source of liquidity to fund distributions and are dependent upon the performance of the operators on their lease and loan obligations and the rates earned thereon. To the extent that the operators experience operating difficulties and are unable to generate sufficient cash to make payments to us, there could be a material adverse impact on our consolidated results of operations, liquidity and/or financial condition. To mitigate this risk, we monitor our investments through a variety of methods determined by property type and operator. Our monitoring process includes periodic review of financial income statements for each facility, periodic review of operator credit, scheduled property inspections and review of covenant compliance.

In addition to our monitoring and research efforts, we also structure our investments to help mitigate payment risk. Some operating leases, financing leases and loans are credit-enhanced by guaranties, security deposits and/or letters of credit. Furthermore, operating leases are typically structured as master leases and loans are generally cross-defaulted and cross-collateralized with other loans, operating leases or agreements between us and the operator and its affiliates.

Depending upon the availability and cost of external capital, we anticipate making additional investments in health care related properties. New investments are generally funded from cash on hand, temporary borrowings under our unsecured revolving line of credit, asset sales and internally generated cash flows. Our investments generate internal cash from rent and interest receipts and principal payments on mortgage loans receivable. Permanent financing for future investments, which replaces funds drawn under our unsecured revolving line of credit, is expected to be provided through a combination of public and private offerings of debt and equity securities and secured and unsecured debt financing. The timing, source and amount of cash flows provided by financing activities and used in investing activities are sensitive to the capital markets’ environment, especially to changes in interest rates. Changes in the capital markets’ environment may impact the availability of cost-effective capital.

We believe our business model has enabled and will continue to enable us to maintain the integrity of our property investments, including in response to financial difficulties that may be experienced by operators. We have traditionally taken and will continue to take a conservative approach to managing our business, choosing to maintain liquidity and exercise patience until favorable investment opportunities arise.

​

36

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Table of Contents

Investment Portfolio Overview

The following tables summarize our real estate investment portfolio as of December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Twelve Months Ended

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

​

​

​

Number of 

​

​

​

​

Percentage

​

​

Rental Income

​

​

Percentage

​

​

​

​

Number of

​

SNF

​

SH

​

Gross

​

of 

​

​

and Resident

​

​

of Total

​

​

Owned Properties

​

Properties (1)

​

Beds (2)

​

Units (2)

​

Investments

​

Investments

​

​

Fees and Services

​

​

Revenues

​

​

Triple-Net Portfolio:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Seniors Housing

​

54

​

—

​

3,218

​

$

505,473

​

21.1

%

​

$

38,040

​

​

16.2

%

​

Skilled Nursing

​

43

​

5,217

​

236

​

​

527,922

​

22.0

%

​

​

54,718

​

​

23.3

%

​

Other (3)

​

1

​

118

​

—

​

​

12,005

​

0.5

%

​

​

1,189

​

​

0.5

%

​

Subtotal: Triple-Net Portfolio

​

98

​

5,335

​

3,454

​

​

1,045,400

​

43.6

%

​

​

93,947

(5)​

​

40.0

%

​

SHOP:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Seniors Housing

​

25

​

—

​

2,073

​

​

565,265

​

23.6

%

​

​

72,116

(6)​

​

30.7

%

​

Total Owned Properties

​

123

​

5,335

​

5,527

​

​

1,610,665

​

67.2

%

​

​

166,063

​

​

70.7

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Number of 

​

​

​

​

Percentage

​

​

Interest Income

​

​

Percentage

​

​

​

​

Number of

​

SNF

​

SH

​

​

Gross

​

of 

​

​

from Financing

​

​

of Total

​

​

Financing Receivables

​

Properties (1)

​

Beds (2)

​

Units (2)

​

​

Investments

​

Investments

​

​

Receivable

​

​

Revenues

​

​

Seniors Housing

​

28

​

—

​

1,263

​

​

286,543

​

12.0

%

​

​

22,430

​

​

9.6

%

​

Skilled Nursing

​

3

​

299

​

—

​

​

76,545

​

3.2

%

​

​

5,885

​

​

2.5

%

​

Total Financing Receivables

​

31

​

299

​

1,263

​

​

363,088

​

15.2

%

​

​

28,315

​

​

12.1

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Number of 

​

​

​

​

Percentage

​

​

Interest Income

​

​

Percentage

​

​

​

​

Number of

​

SNF

​

SH

​

​

Gross

​

of 

​

​

from Mortgage

​

​

of Total

​

​

Mortgage Loans

​

Properties (1)

​

Beds (2)

​

Units (2)

​

​

Investments

​

Investments

​

​

Loans

​

​

Revenues

​

​

Seniors Housing

​

5

​

—

​

551

​

​

123,732

​

5.2

%

​

​

6,193

​

​

2.6

%

​

Skilled Nursing

​

21

​

2,576

​

—

​

​

253,985

​

10.6

%

​

​

30,144

​

​

12.9

%

​

Under Development (4)

​

—

​

—

​

—

​

​

7,794

​

0.3

%

​

​

131

​

​

0.1

%

​

Total Mortgage Loans

​

26

​

2,576

​

551

​

​

385,511

​

16.1

%

​

​

36,468

(7)​

​

15.6

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Number of 

​

​

​

​

Percentage

​

​

Interest

​

​

Percentage

​

​

​

​

Number of

​

SNF

​

SH

​

​

Gross

​

of 

​

​

and other

​

​

of Total

​

​

Notes Receivable

​

Properties (1)

​

Beds (2)

​

Units (2)

​

​

Investments

​

Investments

​

​

Income

​

​

Revenues

​

​

Seniors Housing

​

5

​

—

​

621

​

​

25,025

​

1.0

%

​

​

2,555

​

​

1.1

%

​

Skilled Nursing

​

—

​

—

​

—

​

​

849

​

0.0

%

​

​

—

​

​

0.0

%

​

Total Notes Receivable

​

5

​

—

​

621

​

​

25,874

​

1.0

%

​

​

2,555

(8)​

​

1.1

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Number of 

​

​

​

​

Percentage

​

​

Income from

​

​

Percentage

​

​

​

​

Number of

​

SNF

​

SH

​

​

Gross

of 

​

​

Unconsolidated

​

​

of Total

​

​

Unconsolidated Joint Ventures

​

Properties (1)

​

Beds (2)

​

Units (2)

​

​

Investments

Investments

​

​

Joint Ventures

​

​

Revenues

​

​

Skilled Nursing

​

1

​

104

​

—

​

​

12,524

​

0.5

%

​

​

1,178

​

​

0.5

%

​

Total Unconsolidated Joint Ventures

​

1

​

104

​

—

​

​

12,524

​

0.5

%

​

​

1,178

(9)​

​

0.5

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Portfolio

​

186

​

8,314

​

7,962

​

$

2,397,662

​

100.0

%

​

$

234,579

​

​

100.0

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Number

​

Number of

​

​

​

​

Percentage

​

​

​

​

of

​

SNF

​

SH

​

Gross

​

of

​

​

Summary of Properties by Type

​

Properties (1)

​

Beds (2)

​

Units (2)

​

Investments

​

Investments

​

​

Seniors Housing

​

117

​

—

​

7,726

​

$

1,506,038

​

62.9

%

​

Skilled Nursing

​

68

​

8,196

​

236

​

​

871,825

​

36.3

%

​

Other (3)

​

1

​

118

​

—

​

​

12,005

​

0.5

%

​

Under Development (4)

​

—

​

—

​

—

​

​

7,794

​

0.3

%

​

Total Portfolio

​

186

​

8,314

​

7,962

​

$

2,397,662

​

100.0

%

​

(1)

We have investments in owned properties, including NNN and SHOP, properties we own accounted for as financing receivables, mortgage loans, notes receivable and unconsolidated joint ventures in 23 states to 30 different operators.

​

(2)

See Item 2. Properties for discussion of bed/unit count.

​

(3)

Includes three parcels of land held-for-use and one behavioral health care hospital.

​

(4)

We funded $7,794 under a $26,120 mortgage loan commitment for the construction of a 116-unit SH located in Illinois. The loan bears interest at a current rate of 9.0% and an IRR of 9.5%.

​

(5)

Excludes $10,781 variable rental income from lessee reimbursement of our real estate taxes, $12,957 rental income from properties converted to SHOP and the straight-line rent receivable write-off of $1,514.

​

37

​

Table of Contents

(6)

Resident fees and services include all amounts earned from residents, based on individual resident agreements, at our SHOP communities.

​

(7)

Excludes $2,555 of interest income related to mortgage loans receivable that have been paid off.

​

(8)

Included in the Interest and other income line item of our Consolidated Statements of Income. Excludes $2,739 interest income from loans that have been paid off.

​

(9)

Excludes $5,578 income from the redemption of our preferred equity investments in two joint ventures. Subsequent to December 31, 2025, the operator provided notice of its intent to pay off this mortgage loan.

​

As of December 31, 2025, we had $2.0 billion in net carrying value of investments as follows (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Percentage

​

​

Carrying

​

of

​

​

Value

​

Investments

Triple-Net Portfolio

​

$

693,409

​

35.0

%

SHOP

​

​

508,350

​

25.7

%

Financing receivables

​

​

359,457

​

18.1

%

Mortgage loans

​

​

381,662

​

19.3

%

Notes receivable

​

​

25,615

​

1.3

%

Unconsolidated joint ventures

​

​

12,524

​

0.6

%

​

​

$

1,981,017

​

100.0

%

​

​

38

​

Table of Contents

The following table provides details on the components of revenues and related net operating income (“NOI”) across our portfolio for the year ended December 31, 2025 (in thousands):

​

​

​

​

​

​

Amount

Real Estate Investment segment:

​

​

​

Triple-Net Portfolio

​

​

​

Contractual cash rental income

​

$

109,471

Variable cash rental income

​

​

10,781

Straight-line rent adjustment (1)

​

​

(1,631)

Adjustment of lease incentives and rental income

​

​

(1,514)

Amortization of lease incentives

​

​

(936)

Rental income

​

​

116,171

Financing Receivables:

​

​

​

Cash interest income from financing receivables

​

​

26,912

Effective interest income (2)

​

​

1,403

Interest income from financing receivables

​

​

28,315

Mortgage loans receivable:

​

​

​

Cash interest received

​

​

36,352

Effective interest income (3)

​

​

2,671

Interest income from mortgage loans

​

​

39,023

Other notes receivable:

​

​

​

Interest income-other notes

​

​

6,464

Effective interest adjustment (4)

​

​

(1,170)

Interest income from notes receivable

​

​

5,294

Unconsolidated joint ventures

​

​

​

Income from unconsolidated joint ventures

​

​

6,757

​

​

​

​

Total revenue-Real Estate Investments segment

​

​

195,560

​

​

​

​

Property level expenses-real estate investments

​

​

(10,795)

NOI-Real Estate Investment Segment (5)

​

$

184,765

​

​

​

​

SHOP segment:

​

​

​

Resident fees and services:

​

$

72,116

Property level expenses-SHOP

​

​

(54,088)

NOI-SHOP Segment (5)

​

$

18,028

(1)

At December 31, 2025, the Straight-line rent receivable balance on our Consolidated Balance Sheets was $17,949.

​

(2)

At December 31, 2025, the financing receivables effective interest receivable balance which is included in the Interest receivable line item on our Consolidated Balance Sheets was $6,899.

​

(3)

At December 31, 2025, the mortgage loans receivable effective interest receivable balance which is included in the Interest receivable line item on our Consolidated Balance Sheets was $14,052.

​

(4)

At December 31, 2025, the other notes receivable effective interest receivable balance which is included in the Interest receivable line item on our Consolidated Balance Sheets was $74.

​

(5)

See Non-GAAP Financial Measures below for additional information and reconciliation.

Update on Certain Operators

ALG Senior Living

We hold controlling interest in three joint ventures with ALG Senior Living (“ALG”). The joint ventures own 28 assisted living and memory care communities in North Carolina (27) and South Carolina (1) with a total of 1,263 units. The joint ventures lease these communities to affiliates of ALG under three 10-year master leases and have provided the lessee with the option to purchase these communities. In accordance with generally accepted accounting principles (“GAAP”), the communities are recorded as Financing Receivables on our Consolidated Balance Sheets. Additionally, ALG operates a 45-unit assisted living and memory care community in North Carolina under a mortgage loan maturing in May 2026. ALG has paid their contractual rent and interest obligations through February 2026.

39

​

Table of Contents

Anthem Memory Care

Anthem operated 12 memory care communities located in California, Colorado, Kansas, Illinois and Ohio under triple-net master leases. During the second quarter of 2025, we terminated the Anthem triple-net master leases and converted the 12 memory care communities covered under the master leases into our new SHOP segment. In conjunction with the conversion, we wrote-off Anthem’s working capital note of $2.7 million and the related interest receivable of $0.4 million during the second quarter of 2025.

Genesis Healthcare, Inc.

During the second quarter of 2025, we received written notice from Genesis Healthcare Inc. (“Genesis”) of its exercise of a 5-year extension option, which would extend the term of the lease to April 30, 2031. During the third quarter of 2025, Genesis filed for Chapter 11 bankruptcy. Accordingly, we wrote-off straight-line rent receivable balance of $1.3 million related to Genesis’ master lease. Subsequent to December 31, 2025, a federal bankruptcy judge approved the sale of Genesis’ assets to a newly formed investment group. Affiliates of Genesis lease six skilled nursing centers in New Mexico (five) and Alabama (one) with a total of 782 beds under a master lease with LTC. Genesis has paid its contractual rent through February 2026. We will continue to monitor the status of Genesis’ bankruptcy-related developments.

Prestige Healthcare

Prestige Healthcare (“Prestige”) operates 21 skilled nursing centers located in Michigan secured under four mortgage loans and two skilled nursing centers located in South Carolina under a master lease. Prestige is our largest operator based upon revenues and assets representing 11.9% of our total revenues and 12.6% of our total assets as of December 31, 2025.

Prior to an amendment in July 2025, under Prestige’s $179.9 million mortgage loan secured by 14 properties, the minimum mortgage interest payment due to us was based on an annual current pay rate of 8.5% on the outstanding loan balance. The difference between the contractual interest rate and the current pay interest rate on the outstanding loan balance remained an obligation of Prestige and was payable through the application of security deposits we hold on behalf of Prestige or was payable at maturity. At December 31, 2025, Prestige’s security totaled $6.1 million.

During the third quarter of 2025, Prestige’s $179.9 million mortgage loan was modified to increase the current interest paid by Prestige from 8.5% to the full contractual interest rate of 11.14%, escalating annually. The modification was effective July 1, 2025. Additionally, the modification provides Prestige an option to prepay this mortgage loan at par and without penalty within a 12-month window beginning in July 2026. Prestige is required to provide us with at least a 90-day notice of its intention to exercise the option and the ability for Prestige to exercise the pre-payment option is contingent on several factors including Prestige being current and in good standing on all its mortgage loans with LTC and obtaining replacement financing. In conjunction with the loan amendment that provided the borrower with a penalty-free early payoff option, we wrote-off $41.5 million of interest receivable previously accrued related to this loan during the third quarter of 2025. Subsequent to December 31, 2025, Prestige provided notice of its intent to repay its $179.9 million mortgage loan and we expect them to repay the loan in 2026. Prestige is current on their contractual loan obligations through February 2026.

Other Operators

We had a JV that owned two assisted living communities with a total of 186 units in Oregon. The communities were leased under two separate leases with the same operator, who was the non-controlling member of the JV. During 2025, we acquired the operator’s $4.0 million non-controlling interest in the JV for $1.2 million and terminated the two existing leases. In connection with the termination of these leases, we wrote-off $0.2 million straight-line rent receivable and $0.3 million lease incentive. Concurrently, we entered into a new combined master lease with the same operator. The new combined master lease had a five-year term with one 1-year extension option and four 5-year extension options. During the fourth quarter of 2025, we terminated the new master lease and converted the senior housing communities covered by the master lease into our SHOP segment. Upon conversion into SHOP, the communities are operating and accounted for as one community. In connection with the conversion, we wrote-off the related working capital note of

40

​

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$1.0 million during the fourth quarter of 2025.

Subsequent to December 31, 2025, we terminated a triple-net master lease and converted two seniors housing communities covered under the master lease to our SHOP segment. Upon conversion, we entered into a management agreement with an operator new to us. The communities have a total of 88 units and a gross book value of $25.9 million and are located in Texas.

​

41

​

Table of Contents

2025 Transactions Overview

The following tables summarize our transactions during the year ended December 31, 2025 (dollar amounts in thousand):

SHOP Segment

During the second quarter of 2025, we began utilizing the RIDEA structure and established a SHOP segment. Following the establishment of SHOP, we terminated triple-net master leases with three operators and converted 15 communities covered under these master leases into our SHOP segment. Upon conversion into the SHOP segment, two of these communities are operating and accounted for as one community. Additionally, we acquired 11 communities within our SHOP segment. As of December 31, 2025, our SHOP segment included 25 seniors housing communities that are managed on our behalf by seven independent operators pursuant to separate management agreements. At December 31, 2025, our SHOP segment represented 23.6% of our gross portfolio investments.

The following table presents information related to our SHOP segment as of December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Average

​

​

​

​

Number

​

Number

​

Investment

​

​

​

Gross

​

of

​

of

​

per

State

​

Investment

​

Properties

​

Beds/Units

​

Unit

Wisconsin

​

$

248,183

​

7

​

742

​

$

334.48

Illinois

​

​

58,022

​

4

​

264

​

$

219.78

California

​

​

48,743

​

2

​

133

​

$

366.49

Colorado

​

​

41,801

​

4

​

228

​

$

183.34

Kentucky

​

​

39,763

​

2

​

158

​

$

251.66

Oregon

​

​

33,139

​

1

​

186

​

$

178.17

Tennessee

​

​

31,334

​

1

​

100

​

$

313.34

Kansas

​

​

26,241

​

2

​

114

​

$

230.18

Georgia

​

​

23,015

​

1

​

88

​

$

261.53

Ohio

​

​

15,024

​

1

​

60

​

$

250.40

Total

​

$

565,265

(1)​

25

​

2,073

​

$

272.68

(1)

Subsequent to December 31, 2025, we acquired three seniors housing communities within our SHOP segment for $108,000. The communities are located in Georgia with a total of 394 units. In conjunction with the acquisition, we entered into a management agreement with an existing operator. Additionally, we terminated a triple-net master lease and converted two SHs covered under the master lease to our SHOP segment. Upon conversion, we entered into a management agreement with an operator new to us. The communities have a total of 88 units and a gross book value of $25,981.

SHOP Acquisitions and Improvement Projects. The following table summarizes our acquisitions within our SHOP segment during the year ended December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

Number

​

Number

​

​

​

​

Purchase

​

Transaction

​

Acquisition

​

of

​

of

State

​

Type of Property

​

Price

​

Costs

​

Costs

​

Properties

​

Beds/Units

California

​

SH

​

$

35,200

​

$

283

​

$

35,483

​

1

​

67

​

Georgia

​

SH

​

​

22,900

​

​

98

​

​

22,998

​

1

​

88

​

Kentucky

​

SH

​

​

39,500

​

​

259

​

​

39,759

​

2

​

158

​

Tennessee

​

SH

​

​

31,250

​

​

81

​

​

31,331

​

1

​

100

​

Wisconsin

​

SH

​

​

194,050

​

​

470

​

​

194,520

​

5

​

520

​

Wisconsin

​

SH

​

​

30,000

​

​

612

​

​

30,612

​

1

​

122

​

​

​

​

​

$

352,900

(1)​

$

1,803

​

$

354,703

(2)​

11

​

1,055

​

(1)

Subsequent to December 31, 2025, we acquired three seniors housing communities in Georgia within our SHOP segment for $108,000. In conjunction with the acquisition, we entered into a management agreement with an existing operator.

​

(2)

At acquisition, we received property tax prorations credits of $1,116.

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​

Table of Contents

During the year ended December 31, 2025, we funded capital improvement projects of $2.7 million within our SHOP segment.

Triple-Net Portfolio

Lease Extensions. Many of our triple-net operating leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater than that currently being paid. The following table outlines information related to our Triple-Net lease extensions during the year ended December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Number

​

Number

​

​

​

​

​

​

​

​

​

Gross

​

of

​

of

​

​

​

Original

​

Extended

Type of Property

​

​

Investment

​

Properties

​

Beds/Units

​

State

​

Maturity

​

Maturity

SH

​

$

68,767

​

7

​

461

​

IL, MI, OH

​

May 31, 2025

​

May 31, 2026

SNF

​

​

53,339

​

6

​

782

​

AL, NM

​

April 30, 2026

(1)​

April 30, 2031

SH

​

​

32,361

​

2

​

159

​

GA, SC

​

December 31, 2025

​

December 31, 2026

SH

​

​

25,891

​

2

​

88

​

TX

​

February 28, 2025

​

February 28, 2026

SNF

​

​

13,053

​

2

​

211

​

SC

​

February 28, 2026

​

February 28, 2031

SNF

​

​

5,275

​

2

​

141

​

TN

​

December 31, 2025

(2)​

December 31, 2026

​

​

$

198,686

​

21

​

1,842

​

​

​

​

​

​

(1)

During the third quarter of 2025, Genesis filed for Chapter 11 bankruptcy. Subsequent to December 31, 2025, a federal bankruptcy judge approved the sale of Genesis’ assets to a newly formed investment group. Genesis has paid its contractual rent through February 2026. We will continue to monitor the status of the bankruptcy-related developments.

​

(2)

The purchase option window provided in the master lease which expired on December 31, 2024, was extended for another year to December 31, 2025. During the third quarter of 2025, the operator provided an election notice to exercise its purchase option.

Lease Terminations. During 2025, we terminated two existing leases with the same operator and combined them into a single master lease with the same operator. The new master lease had a five-year term. In connection with the termination of these leases, we wrote-off $0.2 million of straight-line rent receivable and $0.3 million of lease incentive balances during the year ended December 31, 2025. During the fourth quarter of 2025, we terminated the new master lease and converted the senior housing communities covered by the master lease into our SHOP segment. The communities are located in Oregon with a total of 186 units. Upon conversion into SHOP, the communities are operating and accounted for as one community. In connection with the conversion, we wrote-off the related working capital note of $1.0 million during the fourth quarter of 2025.

​

Additionally, during 2025, we terminated the Anthem Memory Care, LLC (“Anthem”) triple-net master leases and converted the communities covered under the master leases into our SHOP segment. In conjunction with the conversion, during 2025, we wrote-off Anthem’s working capital note of $2.7 million and the related interest receivable of $0.4 million. Also, we terminated the New Perspective Senior Living, LLC (“New Perspective”) triple-net lease and converted the community covered under the lease into our SHOP segment. In connection with the conversion, we paid New Perspective $6.0 million lease termination fee.

43

​

Table of Contents

Triple-Net Portfolio Sales. During the year ended December 31, 2025, we recorded a net gain on sale of real estate of $77.8 million. The following table summarizes property sales during the year ended December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Type

​

Number

​

Number

​

​

​

​

​

​

​

​

​

​

​

​

of

​

of

​

of

​

​

Sales

​

​

Carrying

​

​

Net

​

State

​

Properties

​

Properties

​

Beds/Units

​

​

Price

​

​

Value

​

​

Gain (Loss) (1)

​

California

​

SNF

​

1

​

156

​

$

29,000

​

$

12,010

​

$

16,578

​

Florida

​

SNF

​

2

​

240

​

​

43,000

​

​

16,148

​

​

25,907

​

Ohio

​

SH

​

1

​

39

​

​

1,000

​

​

670

​

​

236

​

Ohio (2)

​

N/A

​

—

​

—

​

​

1,800

​

​

1,342

​

​

340

​

Oklahoma

​

SH

​

1

​

29

​

​

670

​

​

670

​

​

(96)

​

Texas

​

N/A

​

1

​

—

​

​

2,880

​

​

3,266

​

​

(690)

​

Virginia

​

SNF

​

4

​

500

​

​

51,000

​

​

14,772

​

​

35,547

​

​

​

​

​

10

​

964

​

$

129,350

​

$

48,878

​

$

77,822

​

(1)

Calculation of net gain (loss) includes cost of sales and write-off of straight-line rent receivable and lease incentives, when applicable.

​

(2)

We sold a parcel of land adjacent to a memory care community within our portfolio.

Triple-Net Portfolio Improvement Projects. During the year ended December 31, 2025, we invested in improvement projects within our Triple-Net Portfolio as follows (in thousands):

​

​

​

​

​

Type of Property

​

NNN

​

Seniors Housing Communities

​

$

2,967

​

Skilled Nursing Centers

​

​

1,600

​

Total

​

$

4,567

​

44

​

Table of Contents

Mortgage Loans Receivable

The following table summarizes our mortgage loans receivable activity for the year ended December 31, 2025 (in thousands):

​

​

​

​

​

​

​

Amount

​

Originations and funding under mortgage loans receivable

​

$

105,845

(1)​

Payoffs received

​

​

(37,237)

(2)​

Application of interest reserve

​

​

2,177

​

Scheduled principal payments received

​

​

(1,000)

​

Mortgage loan premium amortization

​

​

(9)

​

Provision for loan loss reserve

​

​

(697)

​

Net increase in mortgage loans receivable

​

$

69,079

​

(1)

Funded the following mortgage loans during 2025:

​

(a)

$55,350 under a $57,550 mortgage loan commitment secured by two SH with a total of 171 units in California. The loan term is five years at a rate of 8.3%;

​

(b)

$38,351 under a $42,300 mortgage loan commitment secured by a 250-unit SH in Florida. The loan term is five years at a fixed rate of 8.5%;

​

(c)

$4,350 under a $19,500 mortgage loan commitment for the construction of an 85-unit SH in Michigan. The borrower contributed $12,100 of equity upon origination in July 2023, which was used to initially fund the construction. Our remaining commitment is $2,396. The interest-only loan term is approximately three years at a rate of 8.75%, and includes two one-year extensions, each of which is contingent on certain coverage thresholds; and

​

(d)

$7,794 under a $26,120 mortgage loan commitment for the construction of a 116-unit SH located in Illinois. The borrower contributed $12,300 of equity which was used to initially fund the construction. During the third quarter of 2025, we began funding this commitment. Our remaining commitment is $18,326. The loan bears interest at a current rate of 9.0% and an IRR of 9.5%.

​

(2)

Received the following payoffs and paydown during 2025:

​

(a)

$16,706 from a mortgage loan payoff secured by a 112-unit SH in Florida;

​

(b)

$16,500 from a mortgage loan payoff secured by a 150-bed SNF in Illinois;

​

(c)

$4,000 from a mortgage loan payoff secured by two SH with a total of 92 units in Florida; and

​

(d)

$31 of partial principal paydown.

Unconsolidated Joint Ventures

We had preferred equity investments in joint ventures that met the accounting criteria to be considered a variable interest entity (“VIE”). During the year ended December 31, 2025, we received $16.0 million, which includes a 13% exit IRR of $3.0 million, from the redemption of a preferred equity investment in a joint venture that owns a 267-unit seniors housing in Washington. Additionally, during the year ended December 31, 2025, we received $8.1 million, which includes a 12% exit IRR of $1.8 million, from the redemption of a preferred equity investment in a joint venture that owns a 109-unit seniors housing community in Washington.

45

​

Table of Contents

Notes Receivable

The following table summarizes our notes receivable activity for the year ended December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

Amount

​

​

Advances under notes receivable

  ​ ​ ​

$

25

​

Principal payments received under notes receivable

​

​

(18,218)

(1)​

​

Write-off of notes receivable

​

​

(3,650)

(2)​

​

Recovery of credit losses

​

​

218

​

​

Net decrease in notes receivable

​

$

(21,625)

​

​

(1)

Received the following payoffs and paydown during 2025:

​

(a)

$17,000 from the early payoff of a mezzanine loan. In conjunction with the mezzanine loan payoff, we received 12% exit IRR income of $2,599 recognized as Interest and other income in our Consolidated Statements of Income. The exit IRR income was partially offset by $1,624 of effective interest previously recognized over the term of the mezzanine loan through payoff;

​

(b)

$639 from the payoff of three working capital loans; and

​

(c)

$579 from the paydown of a working capital loan.

​

(2)

Represents the write-off of the Anthem working capital note in connection with terminating Anthem’s master lease and converting the communities covered under the master lease to SHOP.

​

Key Performance Indicators, Trends and Uncertainties

We utilize several key performance indicators to evaluate the various aspects of our business. These indicators are discussed below and relate to concentration risk and credit strength. Management uses these key performance indicators to facilitate internal and external comparisons to our historical operating results in making operating decisions and for budget planning purposes.

Concentration Risk. We evaluate by gross real estate investment our concentration risk in terms of asset mix, real estate investment mix, operator mix and geographic mix. Concentration risk is valuable to understand what portion of our real estate investments could be at risk if certain sectors were to experience downturns. Asset mix measures the portion of our real estate investments that are real property or mortgage loans. Investment mix measures the portion of our investments that relate to our various property types. Operator mix measures the portion of our real estate investments that relate to our top five operators. Geographic mix measures the portion of our real estate investment that relate to our top five states.

​

46

​

Table of Contents

The following table reflects our recent historical trends of concentration risk (gross investment, in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

12/31/25

​

9/30/25

​

6/30/25

​

3/31/25

​

12/31/24

Asset mix:

​

​

  ​ ​ ​

​

​

​

​

​

  ​ ​ ​

​

​

  ​ ​ ​

​

​

  ​ ​ ​

​

Triple-Net Portfolio

​

$

1,045,400

​

$

1,149,924

​

$

1,154,836

​

$

1,329,856

​

$

1,333,078

​

SHOP

​

​

565,265

​

​

446,527

​

​

174,847

​

​

—

​

​

—

​

Financing receivables

​

​

363,088

​

​

362,201

​

​

361,438

​

​

361,460

​

​

361,482

​

Mortgage loan receivables

​

​

385,511

​

​

393,587

​

​

356,815

​

​

317,527

​

​

315,734

​

Notes receivable

​

​

25,874

​

​

27,010

​

​

44,135

​

​

44,786

​

​

47,717

​

Unconsolidated joint ventures

​

​

12,524

​

​

18,342

​

​

17,793

​

​

17,602

​

​

30,602

​

Real estate investment mix:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Senior housing communities

​

$

1,506,038

​

$

1,440,634

​

$

1,138,799

​

$

1,100,232

​

$

1,117,588

​

Skilled nursing centers

​

​

871,825

​

​

943,775

​

​

959,060

​

​

958,994

​

​

959,020

​

Other (1)

​

​

12,005

​

​

12,005

​

​

12,005

​

​

12,005

​

​

12,005

​

Under development

​

7,794

​

​

1,177

​

​

—

​

​

—

​

​

—

​

Operator/credit mix:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

ALG Senior Living

​

$

297,292

​

$

296,405

​

$

295,628

​

$

295,629

​

$

295,629

​

Prestige Healthcare (1)

​

​

267,982

​

​

268,534

​

​

268,567

​

​

268,896

​

​

269,022

​

Encore Senior Living

​

​

206,429

​

​

199,187

​

​

196,735

​

​

195,355

​

​

195,276

​

HMG Healthcare, LLC

​

​

167,737

​

​

167,917

​

​

167,202

​

​

166,976

​

​

166,716

​

Anthem Memory Care, LLC (2)

​

​

—

​

​

—

​

​

—

​

​

153,714

​

​

156,407

​

Carespring Health Care Management, LLC

​

​

102,940

​

​

102,940

​

​

102,940

​

​

102,940

​

​

102,940

​

Remaining operators

​

​

790,017

​

​

916,081

​

​

903,945

​

​

887,721

​

​

902,623

​

SHOP operators (2) (3)

​

​

565,265

​

​

446,527

​

​

174,847

​

​

—

​

​

—

​

Geographic mix:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Wisconsin

​

$

319,951

​

$

288,933

​

$

94,051

​

$

93,849

​

$

93,844

​

Texas

​

​

314,987

​

​

314,232

​

​

319,423

​

​

318,584

​

​

318,133

​

North Carolina

​

​

303,391

​

​

302,504

​

​

301,727

​

​

301,650

​

​

301,468

​

Michigan

​

​

293,954

​

​

293,889

​

​

293,189

​

​

292,396

​

​

290,450

​

California (4)

​

​

143,906

​

​

160,780

​

​

69,717

​

​

69,717

​

​

69,717

​

Remaining states (4)

​

​

1,021,473

​

​

1,037,253

​

​

1,031,757

​

​

995,035

​

​

1,015,001

​

(1)

As of December 31, 2025, we have three parcels of land. These parcels are located adjacent to properties securing the Prestige Healthcare mortgage loan and are managed by Prestige. Subsequent to December 31, 2025, Prestige provided notice of its intent to repay its $179,885 mortgage loan and we expect them to repay the loan in 2026.

​

(2)

During the second quarter of 2025, we terminated our Anthem triple-net master leases and converted the communities covered under the master leases into our SHOP segment. Accordingly, our “Anthem Memory Care, LLC” were included with “SHOP operators” classification for the third and fourth quarters of 2025.

​

(3)

Our communities within our SHOP segment operated by independent operators on our behalf are classified as “SHOP operators”. Our SHOP segment is not subject to operator/credit concentration risk.

​

(4)

During the three months ended December 31, 2025, we sold two SNFs in Florida with a gross book value of $23,902 for a sales price of $43,000. As a result of this transaction, Florida is no longer a top five state under our geographic mix and is replaced by California. Accordingly, our “California” properties were reclassified from “Remaining states” and our “Florida” properties were reclassified to “Remaining states” for all periods presented.

Credit Strength. We measure our credit strength both in terms of leverage ratios and coverage ratios. Our leverage ratios include debt to gross asset value and debt to market capitalization. The leverage ratios indicate how much of our Consolidated Balance Sheets capitalization is related to long-term obligations. Our coverage ratios include interest coverage ratio and fixed charge coverage ratio. The coverage ratios indicate our ability to service interest and fixed charges (interest). The coverage ratios are based on earnings before interest, taxes, depreciation and amortization for real estate (“EBITDAre”) as defined by National Association of Real Estate Investment Trusts (“Nareit”). EBITDAre is calculated as net income available to common stockholders (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense, (iii) real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate, (v) gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated partnerships and joint ventures. Adjusted EBITDAre is calculated as EBITDAre adjusted for non-recurring items. Leverage ratios and coverage ratios are widely used by investors, analysts and rating agencies in the valuation, comparison, rating and investment recommendations of companies. The following table reflects the recent historical

47

​

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trends for our credit strength measures:

Balance Sheet Metrics

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended

​

Quarter Ended

​

​

​

12/31/25

​

12/31/25

​

​

9/30/25

​

​

6/30/25

​

​

3/31/25

​

​

12/31/24

​

Debt to gross asset value

​

34.0

% 

34

%

(1)​

38.1

%

(4)​

31.3

%

​

31.1

%

​

31.1

%

Debt to market capitalization ratio

​

33.6

% 

33.6

%

(2)​

35.1

%

(5)​

30.4

%

(7)​

29.5

%

(8)​

30.3

%

Interest coverage ratio (10)

​

4.8

x

4.4

x

(3) ​

4.8

x

(6 )​

5.1

x

​

5.0

x

(9)​

4.7

x

Fixed charge coverage ratio (10)

​

4.8

x

4.4

x

(3) ​

4.8

x

(6 )​

5.1

x

​

5.0

x

(9)​

4.7

x

(1)

Decreased due to decrease in outstanding debt.

​

(2)

Decreased due to decrease in outstanding debt partially offset by decrease in market capitalization resulting from lower stock price.

​

(3)

Decreased due to increase in interest expense partially offset by increase in net operating income from our SHOP segment.

​

(4)

Increased due to increase in outstanding debt partially offset by increase in gross asset value.

​

(5)

Increased due to increase in outstanding debt partially offset by increase in market capitalization resulting from the sale of common stock under our Equity Distribution Agreement as well as increase in stock price.

​

(6)

Decreased due to increase in interest expense and decrease in rental income partially offset by increase in revenue from resident fees and services and interest and other income.

​

(7)

Increased due to increase in outstanding debt and decrease in market capitalization from lower stock price.

​

(8)

Decreased due to increase in market capitalization due to increase in stock price.

​

(9)

Increased due to decrease in interest expense.

​

(10)

In calculating our interest coverage and fixed charge coverage ratios above, we use EBITDAre, which is a financial measure not derived in accordance with GAAP (non-GAAP financial measure). EBITDAre and Adjusted EBITDAre are not alternatives to net income, operating income or cash flows from operating activities as calculated and presented in accordance with GAAP. You should not rely on EBITDAre and Adjusted EBITDAre as a substitute for any such GAAP financial measures or consider it in isolation, for the purpose of analyzing our financial performance, financial position or cash flows. Net income is the most directly comparable GAAP measure to EBITDAre and Adjusted EBITDAre.

We evaluate our key performance indicators in conjunction with current expectations to determine if historical trends are indicative of future results. Our expected results may not be achieved and actual results may differ materially from our expectations. This may be a result of various factors, including, but not limited to:

●

the status of the economy;

●

the status of capital markets, including prevailing interest rates;

●

compliance with and changes to regulations and payment policies within the health care industry;

●

changes in financing terms;

●

competition within the health care and seniors housing industries;

●

changes in federal, state and local legislation; and

●

the duration, spread and severity of a public health crises such as a pandemic.

Management regularly monitors the economic and other factors listed above. We develop strategic and tactical plans designed to improve performance and maximize our competitive position. Our ability to achieve our financial objectives is dependent upon our ability to effectively execute these plans and to appropriately respond to emerging economic, health care and company-specific trends.

​

48

​

Table of Contents

Operating Results

Year ended December 31, 2025 compared to year ended December 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

​

​

​

2025

​

2024

​

Difference

​

Revenues:

​

​

​

​

​

​

​

​

​

​

Rental income

​

$

116,171

​

$

132,278

​

$

(16,107)

(1)​

Resident fees and services

​

​

72,116

​

​

—

​

​

72,116

(2)​

Interest income from financing receivables

​

​

28,315

​

​

21,663

​

​

6,652

(3)​

Interest income from mortgage loans

​

​

39,023

​

​

45,216

​

​

(6,193)

(4)​

Interest and other income

​

​

7,229

​

​

10,690

​

​

(3,461)

(5)​

Total revenues

​

​

262,854

​

​

209,847

​

​

53,007

​

​

​

​

​

​

​

​

​

​

​

​

Expenses:

​

​

​

​

​

​

​

​

​

​

Interest expense

​

​

35,306

​

​

40,336

​

​

5,030

(6)​

Depreciation and amortization

​

​

37,874

​

​

36,367

​

​

(1,507)

(7)​

Seniors housing operating expenses

​

​

54,088

​

​

—

​

​

(54,088)

(8)​

Impairment loss

​

​

—

​

​

6,953

(9)​

​

6,953

​

Write-off of effective interest receivable

​

​

41,455

​

​

—

​

​

(41,455)

(10)​

Provision for credit losses

​

​

4,515

​

​

741

​

​

(3,774)

(11)​

Transaction costs

​

​

8,221

​

​

819

​

​

(7,402)

(12)​

Triple-net lease property tax expense

​

​

10,795

​

​

12,930

​

​

2,135

​

General and administrative expenses

​

​

31,120

​

​

27,243

​

​

(3,877)

(13)​

Total expenses

​

​

223,374

​

​

125,389

​

​

(97,985)

​

​

​

​

​

​

​

​

​

​

​

​

Income before unconsolidated joint ventures, real estate dispositions and other items

​

​

39,480

​

​

84,458

​

​

(44,978)

​

​

​

​

​

​

​

​

​

​

​

​

Gain on sale of real estate, net

​

​

77,822

(14)​

​

7,979

(15)​

​

69,843

​

Income from unconsolidated joint ventures

​

​

6,757

​

​

2,442

​

​

4,315

(16)​

Income tax provision

​

​

(179)

​

​

—

​

​

(179)

​

Net income

​

​

123,880

​

​

94,879

​

​

29,001

​

Income allocated to non-controlling interests

​

​

(5,908)

​

​

(3,839)

​

​

(2,069)

(3)​

Net income attributable to LTC Properties, Inc.

​

​

117,972

​

​

91,040

​

​

26,932

​

Income allocated to participating securities

​

​

(696)

​

​

(682)

​

​

(14)

​

Net income available to common stockholders

​

$

117,276

​

$

90,358

​

$

26,918

​

(1)

Decreased primarily due to conversion of 15 communities from triple-net to our SHOP segment, lower rent from property sales and the turnaround impact of a one-time revenue received in 2024 related to the repayment of a $2,377 rent credit, write-off of a straight-line rent receivable balance due to an operator filing for bankruptcy and the write-off of a straight-line rent receivable and lease incentive balance in connection with the termination of two existing leases with the same operator, and combining them into a single master lease. The decreases were partially offset by rent increases from fair-market rent resets, annual escalations and amendments.

​

(2)

Resident fees and services include all amounts earned from residents, based on individual resident agreements, at our SHOP communities.

​

(3)

Increased primarily due to the exchange of two mortgage loan receivables near the end of the second quarter of 2024 for controlling interests in two newly formed JVs that are accounted for as financing receivables.

​

(4)

Decreased primarily due to explanation (3) above, decrease in Prestige effective interest previously accrued, and payoffs partially offset by additional mortgage loan funding.

​

(5)

Decreased due to aggregate one-time income of $4,052 received from two former operators and receipt of insurance proceeds in 2024 compared to one-time income of $600 received from a former operator in 2025.

​

(6)

Decreased due to lower average outstanding balance on our revolving line of credit, scheduled principal paydowns on our senior unsecured notes and lower interest rates.

​

(7)

Increased due to acquisitions within our SHOP segment partially offset by properties sold.

​

(8)

Represents operating expenses related to our new SHOP segment.

​

(9)

Represents the impairment loss in connection with the anticipated closure of two SH communities totaling 95 units in Ohio and Texas and the subsequent sale of a 29-unit SH community located in Oklahoma.

​

49

​

Table of Contents

(10)

In conjunction with the Prestige mortgage loan modification that provided Prestige a penalty-free early payoff option, we wrote-off interest receivable previously accrued related to this mortgage loan.

​

(11)

Increased due to the write-off of working capital notes and interest receivable in connection with the transition of triple-net leases covering 15 properties to RIDEA.

​

(12)

Increased primarily due to $5,971 lease termination fee paid to New Perspective upon conversion of the community covered under a triple-net lease into our SHOP segment and additional costs associated with the startup of our new RIDEA platform.

​

(13)

Increased primarily due to one-time expenses related to an employee’s retirement and increase in incentive compensation expenses and other corporate expenses.

​

(14)

Represents the gain on sale related to the sale of seven SNFs with a total of 896 units located in California (one), Florida (two) and Virginia (four), one SH and a parcel of land adjacent to an SH within our portfolio located in Ohio partially offset by a net loss on sale related to a closed facility in Texas.

​

(15)

Represents the gain on sale of an 80-unit SH in Texas, a 110-unit community in Wisconsin and three closed properties located in Texas (two) and Colorado (one), partially offset by the aggregate loss on sale of six SHs located in Texas (five) and Florida (one).

​

(16)

Increased due to the aggregate exit IRR of $4,762 received in connection with the redemption of our preferred equity investments in two JVs.

​

​

50

​

Table of Contents

​

Year ended December 31, 2024 compared to year ended December 31, 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

​

​

​

​

2024

​

2023

​

Difference

 ​

Revenues:

  ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

  ​ ​ ​

​

  ​ ​ ​

​

Rental income

​

$

132,278

​

$

127,350

​

$

4,928

(1)​

Interest Income from financing receivables

​

​

21,663

​

​

15,243

​

​

6,420

(2)​

Interest income from mortgage loans

​

45,216

​

47,725

​

(2,509)

(3)​

Interest and other income

​

10,690

​

6,926

​

3,764

(4)​

Total revenues

​

209,847

​

197,244

​

12,603

​

​

​

​

​

​

​

​

​

​

​

​

Expenses:

​

​

​

​

​

​

​

​

​

​

Interest expense

​

40,336

​

47,014

​

6,678

(5)​

Depreciation and amortization

​

36,367

​

37,416

​

1,049

(6)​

Impairment loss

​

6,953

(7)​

15,775

(8)​

8,822

​

Provision for credit losses

​

​

741

​

​

5,678

​

​

4,937

(9)​

Transaction costs

​

​

819

​

​

1,144

​

​

325

​

Property tax expense

​

​

12,930

​

​

13,269

​

​

339

​

General and administrative expenses

​

27,243

​

24,286

​

(2,957)

(10)​

Total expenses

​

125,389

​

144,582

​

19,193

​

​

​

​

​

​

​

​

​

​

​

​

Income before unconsolidated joint ventures, real estate dispositions and other items

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gain on sale of real estate, net

​

​

7,979

(11)​

​

37,296

(12)​

​

(29,317)

​

Income from unconsolidated joint ventures

​

​

2,442

​

​

1,504

​

​

938

(13)​

Net income

​

94,879

​

91,462

​

3,417

​

Income allocated to non-controlling interests

​

(3,839)

​

(1,727)

​

(2,112)

(2)​

Net income attributable to LTC Properties, Inc.

​

91,040

​

89,735

​

1,305

​

Income allocated to participating securities

​

(682)

​

(587)

​

(95)

​

Net income available to common stockholders

​

$

90,358

​

$

89,148

​

$

1,210

​

(1)

Increased due to $3,158 one-time additional straight-line rental income related to restoring accrual basis accounting for two master leases, $2,377 repayment of rent credit in connection with the sale of our interest in a consolidated JV, rental income from acquisitions, annual rent escalations, partially offset by portfolio transitions and property sales.

​

(2)

Increased primarily due to exchange of two mortgage loan receivables during the second quarter of 2024 for controlling interests in two newly formed JVs that are accounted for as financing receivables.

​

(3)

Decreased primarily due to explanation (2) above and payoffs, partially offset by mortgage loan originations.

​

(4)

Increased primarily due to aggregate one-time income of $4,052 received from two former operators, partially offset by working capital note payoffs.

​

(5)

Decreased due to lower outstanding balance on our revolving line of credit and scheduled principal paydowns on our senior unsecured notes.

​

(6)

Decreased due to properties sold.

​

(7)

Represents the impairment loss in connection with the anticipated closure of SH totaling 95 units in Ohio and Texas and the subsequent sale of a 29-unit SH located in Oklahoma.

​

(8)

Represents the impairment loss in connection with the negotiations to sell seven SH totaling 248 units in Texas and the impairment loss related to three SH totaling 197 units in Florida and Mississippi due to entering into purchase and sale agreements with sales prices lower than the communities’ carrying values. These properties were sold during 2023 and 2024.

​

(9)

Decreased primarily due to the $3,561 write-off of an uncollectible working capital loan in 2023 and loan and note payoffs, offset by explanation (2) above.

​

(10)

Increased due to higher costs related to properties transitioned to new operators, incentive compensation charges, public company costs and the timing of certain expenditures.

​

(11)

Represents the gain on sale of an 80-unit SH in Texas, a 110-unit community in Wisconsin and three closed properties located in Texas (two) and Colorado (one), partially offset by the aggregate loss on sale of six SHs located in Texas (five) and Florida (one).

​

51

​

Table of Contents

(12)

Represents the aggregate net gain on sale related to 19 SHs located in Florida (five), Kentucky (one), Mississippi (one), Nebraska (three), New Jersey (one), Oklahoma (one), Pennsylvania (two) and South Carolina (three) and two SNFs in New Mexico during 2023.

​

(13)

Increased due to additional income from origination of a $12,700 mortgage loan receivable secured by a SNF in Texas. In accordance with GAAP, this mortgage loan receivable was determined to be an acquisition, development and construction (“ADC”) loan and is accounted for as an unconsolidated JV.

Other

Non-GAAP Financial Measures

A non-GAAP financial measure is defined as a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes or includes amounts that are not excluded from or included in the most directly comparable measure calculated and presented in accordance with GAAP. We consider Funds from Operations (“FFO”), NOI and EBITDAre to be useful supplemental measures of our financial or operating performance.

Funds From Operations

FFO attributable to common stockholders, basic FFO attributable to common stockholders per share and diluted FFO attributable to common stockholders per share are supplemental measures of a REIT’s financial performance that are not defined by GAAP. 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 facilitates comparisons of operating performance between periods.

We use FFO as a supplemental performance measurement of our cash flow generated by operations. FFO does not represent cash generated from operating activities in accordance with GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.

We calculate and report FFO in accordance with the definition and interpretive guidelines issued by Nareit. FFO, as defined by 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. Our calculation 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 that have a different interpretation of the current Nareit definition from us; therefore, caution should be exercised when comparing our FFO to that of other REITs.

52

​

Table of Contents

The following table reconciles net income available to common stockholders to FFO attributable to common stockholders (unaudited, amounts in thousands, except per share amounts):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended December 31,

​

​

2025

​

2024

​

2023

GAAP net income available to common stockholders

​

$

117,276

  ​ ​ ​

$

90,358

  ​ ​ ​

$

89,148

​

Add: Depreciation and amortization

​

37,874

​

36,367

​

37,416

​

Add: Impairment loss

​

​

—

​

​

6,953

​

​

15,775

​

Less: Gain on sale of real estate, net

​

(77,822)

​

(7,979)

​

(37,296)

​

Nareit FFO attributable to common stockholders

​

$

77,328

​

$

125,699

​

$

105,043

​

Nareit FFO attributable to common stockholders per share:

​

​

​

​

​

​

​

​

​

​

Effect of dilutive securities:

​

​

​

​

​

​

​

​

​

​

Add: Participating securities

​

​

—

​

​

682

​

​

587

​

Diluted Nareit FFO attributable to common stockholders

​

$

77,328

​

$

126,381

​

$

105,630

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average shares used to calculate Nareit FFO per share:

​

​

​

​

​

​

​

​

​

​

Shares for basic net income per share

​

​

46,230

​

​

43,743

​

​

41,272

​

Effect of dilutive securities:

​

​

​

​

​

​

​

​

​

​

Performance-based stock units

​

​

330

​

​

498

​

​

86

​

Participating securities

​

​

—

​

​

296

​

​

256

​

Total effect of dilutive securities

​

​

330

​

​

794

​

​

342

​

Shares for diluted FFO per share

​

​

46,560

​

​

44,537

​

​

41,614

​

​

Net Operating Income

Net operating income or NOI is a non-GAAP financial measure that is calculated as net income (loss) (computed in accordance with GAAP) before (i) general and administrative expenses, (ii) transaction costs, (iii) write-off of effective interest, (iv) provision for credit losses, (v) impairment loss, (vi) depreciation and amortization, (vii) interest expense,(viii) gain or loss on sale of real estate and (ix) income tax benefit or expense. We use NOI to reflect the operating performance of our portfolio because NOI excludes certain items that are not associated with the operations of our properties.

NOI is not equivalent to our net income (loss) as determined under GAAP. Additionally, our use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. Therefore, caution should be exercised when comparing our NOI to that of other REITs.

The following is a reconciliation of net income or loss, which is the most directly comparable GAAP financial measure to NOI for the years ended December 31, 2025, 2024 and 2023 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

​

2025

​

2024

​

2023

Net income

​

​

$

123,880

​

$

94,879

​

$

91,462

Add: Income tax provision

​

​

​

179

​

​

—

​

​

—

Less : Gain on sale of real estate, net

​

​

​

(77,822)

​

​

(7,979)

​

​

(37,296)

Add: General and administrative expense

​

​

​

31,120

​

​

27,243

​

​

24,286

Add: Transaction costs

​

​

​

8,221

​

​

819

​

​

1,144

Add: Write-off of effective interest

​

​

​

41,455

​

​

—

​

​

—

Add: Provision for credit losses

​

​

​

4,515

​

​

741

​

​

5,678

Add: Impairment loss

​

​

​

—

​

​

6,953

​

​

15,775

Add: Depreciation and amortization

​

​

​

37,874

​

​

36,367

​

​

37,416

Add: Interest expense

​

​

​

35,306

​

​

40,336

​

​

47,014

NOI

​

​

$

204,728

​

$

199,359

​

$

185,479

​

​

​

53

​

Table of Contents

Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate

Earnings before interest, taxes, depreciation and amortization for real estate or EBITDAre is calculated as net income available to common stockholders (computed in accordance with GAAP) excluding (i) interest expense, (ii) income tax expense, (iii) real estate depreciation and amortization, (iv) impairment write-downs of depreciable real estate, (v) gains or losses on the sale of depreciable real estate, and (vi) adjustments for unconsolidated partnerships and joint ventures.

EBITDAre is not an alternative to net income, operating income or cash flows from operating activities as calculated and presented in accordance with GAAP. You should not rely on EBITDAre as a substitute for any such GAAP financial measures or consider it in isolation, for the purpose of analyzing our financial performance, financial position or cash flows. Net income is the most directly comparable GAAP measure to EBITDAre.

54

​

Table of Contents

The following is a reconciliation of net income or loss, which is the most directly comparable GAAP financial measure to EBITDAre for the periods presented below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year to Date

​

Three Months Ended

​

​

​

12/31/25

​

12/31/25

​

​

9/30/25

​

6/30/25

​

3/31/25

​

12/31/24

​

Net income (loss)

​

$

123,880

​

$

103,651

​

$

(18,540)

​

$

16,548

​

$

22,221

​

$

19,590

​

Less/Add: (Gain)/loss on sale

​

​

(77,822)

​

​

(78,057)

​

​

738

​

​

(332)

​

​

(171)

​

​

(1,097)

​

Add/Less: Income tax provision (benefit)

​

​

179

​

​

218

​

​

42

​

​

(81)

​

​

—

​

​

—

​

Add: Impairment loss

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

6,953

​

Add: Interest expense

​

​

35,306

​

​

10,588

​

​

8,791

​

​

8,014

​

​

7,913

​

​

8,365

​

Add: Depreciation and amortization

​

​

37,874

​

​

10,949

​

​

8,987

​

​

8,776

​

​

9,162

​

​

9,194

​

EBITDAre

​

​

119,417

​

​

47,349

​

​

18

​

​

32,925

​

​

39,125

​

​

43,005

​

Add/(Less): Non-recurring one-time items

​

​

49,783

(1)​

​

(1,051)

(2)​

​

42,418

(3)​

​

8,011

(4)​

​

405

(5)​

​

(3,379)

(6)​

Adjusted EBITDAre

​

$

169,200

​

$

46,298

​

$

42,436

​

$

40,936

​

$

39,530

​

$

39,626

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense

​

$

35,306

​

$

10,588

​

$

8,791

​

$

8,014

​

$

7,913

​

$

8,365

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest coverage ratio

​

​

4.8

x

​

4.4

x

​

4.8

x

​

5.1

x

​

5.0

x

​

4.7

x

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense

​

$

35,306

​

$

10,588

​

$

8,791

​

$

8,014

​

$

7,913

​

$

8,365

​

Total fixed charges

​

$

35,306

​

$

10,588

​

$

8,791

​

$

8,014

​

$

7,913

​

$

8,365

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fixed charge coverage ratio

​

​

4.8

x

​

4.4

x

​

4.8

x

​

5.1

x

​

5.0

x

​

4.7

x

(1)

See (2) through (5) below.

​

(2)

Includes $1,800 received in connection with the redemption of our preferred equity investment in a joint venture and $600 of one-time income received from a former operator partially offset by $957 write-off of a working capital note and $392 of one-time transaction costs in connection with the transition to RIDEA.

​

(3)

Includes $41,455 effective interest write-off related to a mortgage loan amendment that permits penalty-free early payoff window within an allowable window, $1,271 straight-line rent receivable write-off due to an operator’s bankruptcy filing, $554 provision for credit losses related to mortgage loan originations and $488 of one-time transaction costs in connection with the transition to RIDEA partially offset by the exit IRR of $975 received in connection with an early payoff of a mezzanine loan and recovery of credit losses of $375 related to loan payoffs.

​

(4)

Includes $5,971termination fee paid to New Perspective, $1,136 one-time costs associated with an employee’s retirement, $520 of one-time RIDEA transaction costs and $384 provision for credit losses related to a mortgage loan origination.

​

(5)

Includes $2,693 write-off of a working capital note, $371 of related interest receivable, and $303 of one-time transaction costs, all in connection with the transition to RIDEA, partially offset by the 13% exit IRR of $2,962 received in connection with the redemption of our preferred equity investment in a JV.

​

(6)

Includes a one-time additional straight-line income of $3,158 related to restoring accrual basis accounting for two master leases, recovery of credit losses of $511 related to a mortgage loan receivable write-off, partially offset by a $290 provision for credit losses related to the write-off of an uncollectible loan receivable.

Critical Accounting Policies and Estimates

Our accounting policies are more fully described under Item 8. FINANCIAL STATEMENTS—Footnote 2. Summary of Significant Accounting Policies. As discussed in Footnote 2, the preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Listed below are those policies and estimates that we believe are critical and require the use of significant judgement in their application.

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​

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Impairment of Long-Lived Assets

Assets that are classified as held-for-use are periodically evaluated for impairment when events or changes in circumstances indicate that the asset may be impaired or the carrying amount of the asset may not be recoverable through future undiscounted cash flows. Where indicators of impairment exist, the estimation required in the undiscounted future cash flow assumption includes management’s probability-weighting of various scenarios such as modifying the lease with the existing operator, identifying a replacement operator or sale of the real property investment. In addition, the undiscounted future cash flows include management’s assumptions of rental revenues, net operating income, capitalization rates and expected hold periods. In determining fair value, we use current appraisals or other third-party opinions of value and other estimates of fair value such as estimated discounted future cash flows.

Collectability of operator obligations

We assess the collectability of substantially all our lease, financing receivables and mortgage loan payments through maturity. If collectability is not probable, all or a portion of our straight-line rent receivable, effective interest receivable and other lease receivables may be written-off. In order to assess our payments for collectability, we make assumptions that include evaluating operator’s payment history, the financial strength of the operator, projected future market conditions and contractual amounts and timing of expected payments. Our ability to accurately predict collectability of substantially all of the payments due to us impacts the timing of straight-line rent, effective interest and other lease receivable write-offs, if any. While we believe our assumptions are reasonable, changes in these assumptions may have a material impact on our consolidated financial statements.

Purchase Price Allocation

We evaluate each purchase transaction to determine whether the acquired assets meet the definition of an asset acquisition or a business combination. Transaction costs related to acquisitions that are not deemed to be business combinations are included in the cost basis of the acquired assets, while transaction costs related to acquisitions that are deemed to be business combinations are expensed as incurred.

We make estimates as part of our allocation of the purchase price for asset acquisitions to the various components of the acquisition based upon the relative fair value of each component. The most significant components of our purchase allocations are typically the allocation of fair value to land and building.  Our estimates of the fair value of land and building acquired were determined using the sales comparison approach and the income approach, respectively, and include assumptions of comparable land sales, direct capitalization rates and property net operating income.

​

In the case of the fair value of buildings and the allocation of value to land and other intangibles, the estimates of the values of these components will affect the amount of depreciation and amortization we record over the estimated useful life of the property acquired or the remaining lease term.

Liquidity and Capital Resources

Sources and Uses of Cash

As of December 31, 2025, we had $650.0 million in liquidity as follows (amounts in thousands):

​

​

​

​

​

At December 31, 2025

​

Cash and cash equivalents

$

14,387

​

Available under unsecured revolving line of credit

​

347,137

(1)​

Available under Equity Distribution Agreement

​

288,509

(2)​

Total Liquidity

$

650,033

(3)​

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​

Table of Contents

(1)

Subsequent to December 31, 2025, we borrowed $107,000 under our unsecured revolving line of credit. Accordingly, we have $359,863 outstanding with $240,137 available for borrowing.

​

(2)

Subsequent to December 31, 2025, we sold 71,059 shares of common stock under our Equity Distribution Agreement. Accordingly, we had $285,970 available under the Equity Distribution Agreement.

​

(3)

Subsequent to December 31, 2025, we had $540,494 in Liquidity. See (1) and (2) above.

We believe that our current cash balance, cash flow from operations available for distribution or reinvestment, our borrowing capacity and our potential ability to access the capital markets are sufficient to provide for payment of our current operating costs, meet debt obligations and pay common dividends at least sufficient to maintain our REIT status and repay borrowings at, or prior to, their maturity. The timing, source and amount of cash flows used by financing and investing activities are sensitive to the capital markets’ environment, especially to changes in interest rates. In addition, inflation has adversely affected our operators’ business, results of operations, cash flows and financial condition which could, in turn, adversely affect our financial position.

The operating results of the properties will be impacted by various factors over which the operators may have no control. Those factors include, without limitation, the health of the economy, inflation pressures, employee availability and cost, changes in supply of or demand for competing seniors housing and health care facilities, ability to hire and maintain qualified staff, ability to control other rising operating costs, the potential for significant reforms in the health care industry, and related occupancy challenges that could be faced by our industry or in the markets where our properties are located. In addition, our future growth in net income and cash flow may be adversely impacted by various proposals for changes in the governmental regulations and financing of the health care industry or the impact of any other infectious disease and epidemic outbreaks. We cannot presently predict what impact these potential events may have, if any. We believe that adequate provisions have been made for the possibility of loans and financing receivables proving uncollectible but we will continually evaluate the financial status of the operations of our seniors housing and health care properties. In addition, we will monitor our borrowers and the underlying collateral for mortgage loans and financing receivables and will make future revisions to the provision, if considered necessary.

Depending on our borrowing capacity, compliance with financial covenants, ability to access the capital markets, and the payment of dividends may be negatively impacted. We continuously evaluate the availability of cost-effective capital and believe we have sufficient liquidity for our current dividend, corporate expenses and additional capital investments in 2026.

Our investments, principally our investments in owned real properties, financing leases and mortgage loans, are subject to the possibility of loss of their carrying values as a result of changes in market prices, interest rates and inflationary expectations. The effects on interest rates may affect our costs of financing our operations and the fair market value of our financial assets. Generally, our leases have agreed upon annual increases and our loans have predetermined increases in interest rates. Inasmuch as we may initially fund some of our investments with variable interest rate debt, we would be at risk of net interest margin deterioration if medium and long-term rates were to increase.

Our primary sources of cash include rent and interest receipts, borrowings under our unsecured credit facility, public and private issuance of debt and equity securities, proceeds from investment dispositions and principal payments on loans receivable. Our primary uses of cash include property operating expenses and recurring capital expenditures within our SHOP segment, dividend distributions, debt service payments (including principal and interest), real property investments (including acquisitions, renovations and other capital improvements and construction advances), loan advances and general and administrative expenses. These sources and uses of cash are reflected in our Consolidated Statements of Cash Flows as summarized below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

Change

​

Net cash provided by (used in):

​

2025

​

2024

​

​

$

​

Operating activities

​

$

135,977

​

$

125,875

​

$

10,102

​

Investing activities

​

​

(269,944)

​

​

90,680

​

​

(360,624)

​

Financing activities

​

​

138,940

​

​

(227,427)

​

​

366,367

​

Increase (decrease) in cash and cash equivalents

​

​

4,973

​

​

(10,872)

​

​

15,845

​

Cash and cash equivalents, beginning of period

​

​

9,414

​

​

20,286

​

​

(10,872)

​

Cash and cash equivalents, end of period

​

$

14,387

​

$

9,414

​

$

4,973

​

57

​

Table of Contents

Debt Obligations

Unsecured Credit Facility. We had an unsecured credit agreement that provided for an aggregate commitment of the lenders of up to $525.0 million comprising of a $425.0 million revolving credit facility and two $50.0 million term loans (the “Original Term Loans”). The Original Term Loans had maturities of November 19, 2025 and November 19, 2026. The revolving credit facility had a maturity date of November 19, 2026. The unsecured credit agreement permitted us to request increases to the revolving credit facility and term loans commitments up to a total of $1.0 billion. During the third quarter of 2025, we entered into a new four-year unsecured credit agreement (the “New Credit Agreement”) maturing in July 2029, to replace our previous credit agreement. The New Credit Agreement increased the aggregate commitment on our revolving credit facility from $425.0 million to $600.0 million (the “Revolving Line of Credit”) and provides for the opportunity to increase the total commitment to an aggregate $1.2 billion (the “Accordion”). The New Credit Agreement provides for a one-year extension option, subject to customary conditions. Material terms of the New Credit Agreement remain unchanged. In connection with the New Credit Agreement, the Original Term loans were rolled into the Revolving Line of Credit. During the fourth quarter of 2025, we amended our New Credit Agreement to increase the aggregate commitment of the lenders by $200.0 million to a total of $800.0 million through the exercise of the Accordion and established term loans totaling $200.0 million (the “Term Loans”). The Term Loans consist of $50.0 million, $55.0 million, $55.0 million and $40.0 million borrowings, with contractual maturities of three, four, five and seven years, respectively.

Based on our leverage at December 31, 2025, the Revolving Line of Credit provides for interest annually at Adjusted SOFR plus 110 basis points and a facility fee of 15 basis points and the Term Loans provide for interest annually at SOFR plus 115 basis points for the three, four and five year borrowings and 150 basis points for seven year borrowings.

Interest Rate Swap Agreement. In connection with entering into the Original Term Loans as discussed above, we entered into two receive variable/pay fixed interest rate swap agreements with maturities of November 19, 2025 and November 19, 2026, respectively, that effectively locked-in the forecasted interest payments on the Original Term Loan borrowings over the four and five year terms of the loans. Additionally, during the fourth quarter of 2025, we entered into interest rate swaps with maturities of three, four, five and seven years, respectively (the “Interest Rate Swaps”) to effectively lock-in the forecasted interest payments on the Term Loans. Our interest rate swaps are considered cash flow hedges and are recorded on our Consolidated Balance Sheets at fair value, with changes in the fair value of these instruments recognized in Accumulated other comprehensive income (loss) on our Consolidated Balance Sheets. During the year ended December 31, 2025, we recorded $3.3 million decrease in fair value of interest rate swaps.

The following table sets forth information regarding our interest rate swaps at December 31, 2025 (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Notional

​

Fair Value at

​

Date Entered

​

Maturity Date

​

Swap Rate

​

​

Rate Index

​

Amount

​

December 31, 2025

​

November 2021

​

November 19, 2025

​

N/A

%

(1)​

1-month SOFR

​

$

N/A

(1)​

$

—

(1)​

November 2021

​

November 19, 2026

​

2.46

%

​

1-month SOFR

​

​

50,000

(2)​

​

938

​

December 2025

​

December 12, 2028

​

4.61

%

​

SOFR with 5-day lookback

​

​

25,000

​

​

(52)

​

December 2025

​

December 12, 2028

​

4.61

%

​

SOFR with 5-day lookback

​

​

25,000

​

​

(55)

​

December 2025

​

December 12, 2029

​

4.65

%

​

SOFR with 5-day lookback

​

​

55,000

​

​

(136)

​

December 2025

​

December 12, 2030

​

4.68

%

​

SOFR with 5-day lookback

​

​

30,000

​

​

(45)

​

December 2025

​

December 12, 2030

​

4.72

%

​

SOFR with 5-day lookback

​

​

25,000

​

​

(74)

​

December 2025

​

December 12, 2032

​

5.21

%

​

SOFR with 5-day lookback

​

​

27,500

​

​

(45)

​

December 2025

​

December 12, 2032

​

5.25

%

​

SOFR with 5-day lookback

​

​

12,500

​

​

(49)

​

​

​

​

​

​

​

​

​

​

$

250,000

​

$

482

​

(1)

The interest rate swap, which had a notional amount of $50,000, matured on November 19, 2025. Accordingly, the fair value of the interest rate swap was $0 at December 31, 2025.

​

(2)

During the third quarter of 2025, the interest rate swap was rolled into the Revolving Line of Credit.

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​

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Senior Unsecured Notes. We have senior unsecured notes held by institutional investors with interest rates ranging from 3.66% to 4.5%. The senior unsecured notes mature between 2026 and 2033.

The debt obligations by component as of December 31, 2025 are as follows (dollar amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

Applicable

​

​

​

​

Available

​

​

Interest

​

Outstanding

​

for

Debt Obligations

​

Rate (1)

​

Balance

​

Borrowing

Revolving line of credit (2)

​

4.40%

​

$

252,863

​

$

347,137

Term loans, net of debt issue costs

​

4.77%

​

​

198,213

​

​

—

Senior unsecured notes, net of debt issue costs (3)

​

4.12%

​

​

391,105

​

​

—

Total

​

4.36%

​

$

842,181

​

$

347,137

(1)

Represents weighted average of interest rate as of December 31, 2025.

​

(2)

Subsequent to December 31, 2025, we borrowed $107,000 under our unsecured revolving line of credit. Accordingly, we have $359,863 outstanding and $240,137 available for borrowing under our unsecured revolving line of credit.

​

(3)

Subsequent to December 31, 2025, we repaid $5,000 in scheduled principal paydowns on our senior unsecured notes. Accordingly, we have $386,105 outstanding under our senior unsecured notes, net of debt issue costs.

Our debt borrowings and repayments during the year ended December 31, 2025, are as follows (in thousands):

​

​

​

​

​

​

​

​

Debt Obligations

​

​

Borrowings

​

​

Repayments

​

Revolving line of credit

​

$

486,500

(1)​

$

(377,987)

​

Term loans

​

​

200,000

​

​

(100,000)

​

Senior unsecured notes

​

​

—

​

​

(49,500)

(2)​

Total

​

$

686,500

​

$

(527,487)

​

(1)

Subsequent to December 31, 2025, we borrowed $107,000 under our unsecured revolving line of credit. Accordingly, we have $359,863 outstanding and $240,137 available for borrowing under our unsecured revolving line of credit.

​

(2)

Subsequent to December 31, 2025, we repaid $5,000 in scheduled principal paydowns on our senior unsecured notes. Accordingly, we have $386,105 outstanding under our senior unsecured notes, net of debt issue costs.

Equity

At December 31, 2025, we had 48,481,892 shares of common stock outstanding, equity on our balance sheet totaled $1.2 billion and our equity securities had a market value of $1.7 billion. During the year ended December 31, 2025, we declared and paid $107.4 million cash dividends.

Non-controlling Interests. We have entered into partnerships to develop and/or own real estate. Given that our limited members do not have substantive kick-out rights, liquidation rights, or participation rights, we have concluded that the partnerships are VIEs. Since we exercise power over and receive benefits from the VIEs, we are considered the primary beneficiary. Accordingly, we consolidate the VIEs and record the non-controlling interests at cost. As of December 31, 2025, we have the following consolidated VIEs (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

​

​

​

Investment

​

​

​

Property

​

​

​

​

Consolidated

​

​

Non-Controlling

​

Year

​

Purpose

​

Type

​

State

​

​

Assets (1)

​

​

Interests

​

2024

​

Own real estate

​

SH

​

NC/SC

​

$

122,460

​

$

58,010

​

2024

​

Own real estate

​

SH

​

NC

​

​

41,000

​

​

3,015

​

2023

​

Own real estate

​

SH

​

OH

​

​

54,942

​

​

9,134

​

2023

​

Own real estate

​

SH

​

NC

​

​

123,082

​

​

2,916

​

2022

​

Own real estate

​

SNF

​

FL

​

​

76,545

(2)​

​

14,325

​

Total

​

​

​

​

​

​

​

$

418,029

​

$

87,400

​

(1)

Includes the total real estate investments and excludes intangible assets.

​

(2)

During the fourth quarter of 2025, the lessee provided notice of intent to exercise the purchase option available with an exit IRR of 8.5%.

​

During the year ended December 31, 2025, we acquired our joint venture partner’s non-controlling interests in

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​

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the joint ventures that own two seniors housing communities in Oregon with a total of 186 units for $1.2 million. Accordingly, we obtained full ownership and control of these communities. As a result these joint ventures are not listed in the table above.

Common Stock. We have an equity distribution agreement (the “Equity Distribution Agreement”) to offer and sell, from time to time, up to $400.0 million in aggregate offering price of shares of our common stock. The Equity Distribution Agreement provides for sales of common shares to be made by means of ordinary brokers’ transactions, which may include block trades, or transactions that are deemed to be “at the market” offerings.

During the year ended December 31, 2025, we sold 2,804,200 shares of our common stock for $100.6 million in net proceeds under the Equity Distribution Agreement. Accordingly, at December 31, 2025, we had $288.6 million available under the Equity Distribution Agreement. In conjunction with the sale of common stock, we incurred $0.4 million of costs associated with the Equity Distribution Agreement which have been recorded in additional paid in capital as a reduction of proceeds received. Subsequent to December 31, 2025, we sold 71,059 shares of common stock for $2.5 million in net proceeds under our Equity Distribution Agreement.

During 2025, we acquired 151,018 shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations. Subsequent to December 31, 2025, we declared a monthly cash dividend of $0.19 per share on our common stock for the months of January, February and March 2026, payable on January 30, February 27 and March 31, 2026, respectively, to stockholders of record on January 22, February 20, and March 23, 2026, respectively.

Stock Based Compensation Plans. During 2021, we adopted, and our stockholders approved the 2021 Equity Participation Plan (the “2021 Plan”) which replaced the 2015 Equity Participation Plan (the “2015 Plan”). Under the 2021 Plan, 1,900,000 shares of common stock have been authorized and reserved for awards, less one share for every one share that was subject to an award granted under the 2015 Plan after December 31, 2020 and prior to adoption. In addition, any shares that were not issued under outstanding awards under the 2015 Plan because the shares were forfeited or cancelled after December 31, 2020 were added to and available for awards under the 2021 Plan. Under the 2021 Plan, the shares were authorized and reserved for awards to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2021 Plan are set by our compensation committee at its discretion. As of December 31, 2025, we had 1,327,393 shares of common stock reserved for awards under the 2021 Plan.

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​

Table of Contents

Restricted Stock and Performance-based Stock Units. During 2025, we granted 236,242 shares of restricted common stock and performance-based stock units under the 2021 Plan as follows:

​

​

​

​

​

​

​

​

No. of

​

Price per

​

​

​

​

Shares

​

Share

​

Award Type

​

Vesting Period

113,790

​

$

34.88

​

Restricted stock

​

ratably over 3 years

5,626

​

$

35.55

​

Restricted stock

​

April 30, 2028

15,625

​

$

35.20

​

Restricted stock

​

(1)​

52,666

​

$

34.88

​

Performance-based stock units

​

TSR targets (2)

48,535

​

$

34.88

​

Performance-based stock units

​

TSR targets (3)

236,242

​

​

​

​

​

​

​

(1)

The vesting date is the earlier of the one-year anniversary of the award date and the date of the next annual meeting of the stockholders of LTC following the award date.

​

(2)

Vesting is based on achieving certain total shareholder return (“TSR”) targets in 3 years.

​

(3)

Vesting is based on achieving certain TSR targets relative to the TSR of predefined peer group in 3 years.

​

At December 31, 2025, the remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows (dollar amounts in thousands):

​

​

​

​

​

​

​

Remaining

​

​

Compensation

Vesting Date

​

Expense

2026

​

$

5,887

2027

​

​

2,899

2028

​

​

322

Total

​

$

9,108

​

Stock Options. We did not issue any stock options during the year ended December 31, 2025. At December 31, 2025, we had no stock options outstanding and exercisable.

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​

Table of Contents

Material Cash Requirements

We monitor our contractual obligations and commitments described above to ensure funds are available to meet obligations when due. The following table represents our long-term contractual obligations (scheduled principal payments and amounts due at maturity) as of December 31, 2025, excluding the effects of interest and debt issue costs (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

2026

​

2027

​

2028

​

2029

​

2030

​

Thereafter

Revolving line of credit

​

$

252,863

(1)​

$

—

​

$

—

​

$

252,863

​

$

—

​

$

—

​

$

—

​

Term loans

​

​

200,000

​

​

—

​

​

—

​

​

50,000

​

​

55,000

​

​

55,000

​

​

40,000

​

Senior unsecured notes

​

392,000

(2)​

51,500

(2)​

54,500

​

55,000

​

63,000

​

​

67,000

​

101,000

​

​

​

$

844,863

​

$

51,500

​

$

54,500

​

$

357,863

​

$

118,000

​

$

122,000

​

$

141,000

​

(1)

Subsequent to December 31, 2025, we borrowed $107,000 under our unsecured revolving line of credit. Accordingly, we have $359,863 outstanding and $240,137 available for borrowing under our unsecured revolving line of credit.

​

(2)

Subsequent to December 31, 2025, we repaid $5,000 in scheduled principal paydowns on our senior unsecured notes. Accordingly, we have $386,105 outstanding under our senior unsecured notes.

The following table represents our projected interest expense based on current interest rates as of year-end, excluding capitalized interest, amortization of debt issue costs and bank fees, as of December 31, 2025 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​

Total

  ​

2026

  ​

2027

  ​

2028

  ​

2029

  ​

2030

  ​

Thereafter

Revolving line of credit

​

$

41,110

​

$

12,351

​

$

11,251

​

$

11,282

​

$

6,226

​

$

—

​

$

—

​

Term loans

​

​

44,824

​

​

9,671

​

​

9,671

​

​

9,569

​

​

7,191

​

​

4,595

​

​

4,127

​

Senior unsecured notes

​

56,228

​

15,218

​

13,154

​

10,306

​

7,995

​

5,751

​

3,804

​

​

​

$

142,162

​

$

37,240

​

$

34,076

​

$

31,157

​

$

21,412

​

$

10,346

​

$

7,931

​

Also, see Item 8. FINANCIAL STATEMENTS— Note 16. Commitments and Contingencies within our consolidated financial statements for additional information regarding our contractual commitments.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that we expect would materially affect our liquidity and capital resources.

​