LTC Announces Fourth Quarter Operating Results

Business Wire, Feb 25, 2009

WESTLAKE VILLAGE, Calif. -- LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and twelve months ended December 31, 2008 and announced that net income available to common stockholders for the fourth quarter was $6.0 million or $0.26 per diluted share. For the same period in 2007, net income available to common stockholders was $6.9 million or $0.30 per diluted share. This decrease is due primarily to non-payment of rental income and mortgage interest income from affiliates of Sunwest Management, Inc., loan pay-offs and lower invested cash balances at lower interest rates, partially offset by lower interest expense due to debt paid off in 2008. Additionally the Company incurred $0.6 million, or $0.03 per diluted share, of one-time charges in the fourth quarter of 2008 related primarily to lease/loan defaults and terminated transactions. Revenues for the three months ended December 31, 2008, were $16.7 million versus $18.0 million for the same period last year.

The Company announced that during the fourth quarter of 2008 it invested approximately $1.4 million in a mortgage loan on a skilled nursing property with 84 beds located in Utah. This loan has an initial interest rate of 10.0% increasing 0.15% annually, with a 20-year amortization and matures in 11 years.

The Company also announced that for the twelve months ended December 31, 2008, net income available to common stockholders was $28.6 million or $1.24 per diluted share. For the same period in 2007, net income available to common stockholders was $30.8 million or $1.32 per diluted share. Revenues for the twelve months ended December 31, 2008, were $69.4 million compared to $74.8 million for the same period last year.

The Company has scheduled a conference call for Thursday, February 26, 2009, at 10:00 a.m. Pacific time, in order to comment on the Company's performance and operating results for the quarter ended December 31, 2008. The conference call is accessible by dialing 888-241-0558. The international number is 647-427-3417. The earnings release will be available on our website. An audio replay of the conference call will be available from February 26, 2009 through March 12, 2009. Callers can access the replay by dialing 888-567-0341 or 402-220-4372 and entering encore passcode number 81778411.

At December 31, 2008, LTC had investments in 101 skilled nursing properties, 101 assisted living properties and two schools in 30 states. The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through mortgage loans, facility lease transactions and other investments. For more information on LTC Properties, Inc., visit the Company's website at www.ltcproperties.com.

LTC filed its Form 10-K with the Securities and Exchange Commission on February 25, 2009. Shareholders have the ability to receive a hard copy of the complete audited financial statements free of charge upon request by contacting our corporate office or by visiting our website at www.ltcproperties.com.

This press release includes statements that are not purely historical and are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward looking statements. These forward looking statements involve a number of risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such forward looking statements. Although the Company's 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 achieved by the Company may differ materially from any forward looking statements due to the risks and uncertainties of such statements.

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NOTE: Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with the per share amounts for the year. Computations of per share amounts from continuing operations, discontinued operations and net income are made independently. Therefore, the sum of per share amounts from continuing operations and discontinued operations may not agree with the per share amounts from net income available to common stockholders.

Reconciliation of Funds From Operations ("FFO")

FFO is a supplemental measure of a REIT's financial performance that is not defined by accounting principles generally accepted in the United States. We define FFO as net income available to common stockholders adjusted to exclude the gains or losses on the sale of assets and adjusted to add back impairment charges, real estate depreciation and other non-cash charges. Other REITs may not use this definition of FFO and therefore, caution should be exercised when comparing our company's FFO to that of other REITs. FFO is used in the REIT industry as a supplemental measure of financial performance, but is not a substitute for net income per share available to common stockholders determined in accordance with accounting principles generally accepted in the United States.