LTC Reports 2016 Third Quarter Results And Announces New Investments

LTC Properties, Inc. (NYSE: LTC), a real estate investment trust that primarily invests in seniors housing and health care properties, today announced operating results for its third quarter ended September 30, 2016 and recent investment activity.

Net income available to common stockholders was $22.3 million, or $0.57 per diluted share, for the 2016 third quarter, compared with $18.7 million, or $0.52 per diluted share, for the same period in 2015. Funds from Operations ("FFO") increased 13.9% to $29.7 million for the 2016 third quarter, up from $26.1 million for the comparable 2015 period. FFO per diluted common share was $0.76 and $0.72 for the quarters ended September 30, 2016 and 2015, respectively, which represents a 5.6% per share increase. Normalized FFO increased 11.6% to $29.7 million for the 2016 third quarter, up from $26.6 million for the same period in 2015. The increase in net income, FFO and normalized FFO was primarily due to higher revenues from recent acquisitions, mortgage loan originations and completed development projects, partially offset by higher interest expense resulting from the sale of senior unsecured notes and increased utilization of LTC's line of credit, as well as additional general and administrative expenditures related to increased investment activity.

LTC completed the following transactions during the third quarter of 2016:
  • Purchased a parcel of land and improvements in Kentucky for $5.4 million and entered into a development commitment to construct a 143-bed skilled nursing center. The commitment totals $24.3 million, including the land and improvements purchase. The property was added to an existing master lease agreement. Rent on the property will commence upon completion of construction at an initial lease rate of 8.5%;
  • Completed construction of a 66-unit memory care community in California, a 66-unit memory care community in Illinois and an 89-unit combination assisted living and memory care community in South Carolina;
  • Originated a $1.4 million mezzanine loan, funding $1.2 million at closing, with a commitment to fund an additional $0.2 million. This mezzanine loan has a five-year term and a rate of 15%;
  • Sold an assisted living community in Florida for $5.1 million, resulting in a net gain on sale of $2.0 million;
  • Sold a school in New Jersey for $3.9 million, resulting in a net loss of $0.2 million;
  • Sold $40.0 million of 3.99% senior unsecured notes due July 20, 2031 to an insurance company; and
  • Sold 152,623 shares of its common stock for $7.7 million in net proceeds under its equity distribution agreement.

Subsequent to September 30, 2016, LTC completed the following:
  • Increased its monthly cash dividend for the fourth quarter of 2016 by 5.6% from $0.18 per share to $0.19 per share, as previously announced; and
  • Purchased a parcel of land in Illinois for $1.6 million and entered into a development commitment to construct a 66-unit memory care community. The commitment totals $14.5 million, including the land purchase.

Conference Call Information

LTC will conduct a conference call on Thursday, November 3, 2016, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time), to provide commentary on its performance and operating results for the quarter ended September 30, 2016. The conference call is accessible by telephone and the internet. Telephone access will be available by dialing 877-510-2862 (domestically) or 412-902-4134 (internationally). To participate in the webcast, go to LTC's website at www.LTCreit.com 15 minutes before the call to download the necessary software.

An audio replay of the conference call will be available from November 3 through November 17, 2016, and may be accessed by dialing 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering conference number 10092617. Additionally, an audio archive will be available on LTC's website on the "Presentations" page of the "Investor Information" section, which is under the "Investors" tab. LTC's earnings release and supplemental information package for the current period will be available on its website on the "Press Releases" and "Presentations" pages, respectively, of the "Investor Information" section which is under the "Investors" tab.

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