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DATE

Wednesday, Feb. 25, 2026 at 11 a.m. ET

CALL PARTICIPANTS

  • Executive Vice President, Chief Financial Officer, and Corporate Secretary — Pamela J. Shelley-Kessler
  • Executive Vice President and Chief Investment Officer — J. Gibson Satterwhite
  • Executive Vice President, Chief Portfolio Officer — David Boitano
  • Chief Financial Officer — Caroline L. Chikhale
  • President, Chief Operating Officer, and Board Member — Clint B. Malin

TAKEAWAYS

  • SHOP acquisition guidance -- $600 million for 2026, up nearly 70% from 2025 SHOP acquisitions.
  • Closed and imminent SHOP deals -- $100 million in SHOP assets acquired and $160 million scheduled to close in Q2, totaling $260 million and nearly halfway to full-year investment goal.
  • Portfolio transformation -- SHOP expected to grow to 45% of investment portfolio and 40% of NOI by year-end, up from 25% and a lower NOI share at end of 2025.
  • Loan and SNF reduction -- Post-prepayment of $180 million Prestige loan and $90 million in loan payoffs and SNF asset sales, loans are projected to be less than 10% and skilled nursing investments less than 30% of portfolio by December 2026.
  • SHOP NOI performance -- The original 13 SHOP-converted properties grew NOI by 22% over 2024 pro forma levels, reaching $16.2 million of combined rent and NOI versus $12.3 million in rent in 2024.
  • 2026 SHOP NOI growth guidance -- 14% midpoint projected same-property NOI growth for 27 SHOP properties (13 converted plus 14 acquired), with projected occupancy increases of 100-150 basis points and RevPOR growth around 5%.
  • SHOP expense growth -- Projected at 2.5% for the 27-property SHOP subset, below anticipated RevPOR growth.
  • Balance sheet and liquidity -- Credit facility expanded to $800 million; pro forma liquidity at $810 million factoring in $270 million in expected asset sale and loan repayment proceeds.
  • Leverage metrics -- Year-end debt to annualized adjusted EBITDA for real estate at 4.5x and fixed charge coverage ratio at 4.4x, both within the 4x-5x stated target range.
  • Core per share performance -- Core FFO per share increased $0.05 to $0.70, and core FAD per share increased $0.07 to $0.73, representing 8% and 11% respective growth.
  • 2026 earnings guidance -- Core FFO per share projected at $2.75-$2.79 and core FAD per share at $2.82-$2.86; Q1 core FFO per share guidance is $0.66-$0.68 and core FAD $0.68-$0.70.
  • SHOP acquisition pipeline -- Over $500 million in SHOP transactions under review or under LOI, supporting continued portfolio shift.
  • CapEx guidance -- 2026 guidance anticipates FAD CapEx of approximately $5 million, based on a weighted average of $1,500 per unit and a portfolio average age of nine years.
  • SHOP unlevered returns -- Management expects to achieve low to mid-teens unlevered IRRs on SHOP investments and disclosed completed or committed 2026 deals are projecting a year-one yield of over 7.5%.
  • Dispositions cap rate -- Skilled nursing property sales are occurring at an approximate 8.2% cap rate with 2%-2.5% rent escalators.
  • Operator relationships -- The company will have 10 SHOP operator relationships in the portfolio following Q2, six of which are new since mid-2025.

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RISKS

  • Clint B. Malin said, "it has stroke-of-the-pen risk, and things tend to happen when you least expect it," citing potential volatility due to cap rates and policy changes.
  • Significant portfolio exposure to a single operator (Prestige Healthcare) previously led to disruption due to state-specific reimbursement changes, acknowledged by Satterwhite as a de-risking driver for asset sales and loan payoffs.

SUMMARY

LTC Properties (LTC +0.57%) outlined a nearly complete strategic transformation toward a SHOP-focused REIT, targeting 45% of the portfolio and 40% of NOI from SHOP assets by year-end. Management reported a 14% 2026 same-store NOI growth midpoint for 27 SHOP properties and confirmed $260 million in closed or imminent SHOP acquisitions, rapidly progressing toward $600 million full-year guidance. Portfolio risk is being actively reduced through $180 million in anticipated loan prepayments and $90 million in skilled nursing divestitures. Leverage remained stable with significant liquidity as the company integrated $360 million in 2025 and is advancing a $500 million SHOP pipeline. Core FFO per share guidance for 2026 is $2.75-$2.79, driven by expansion in SHOP asset performance and continued discipline in acquisitions and expense control.

  • Management stated, "organic NOI growth will double by the end of this year compared with our pre-transformation to SHOP," indicating accelerating internal growth potential beyond current reported results.
  • The company expects to hold $90 million in Prestige Healthcare loans after July, reducing operator concentration and risk profile.
  • Operator relationships are expanding, with follow-on deals contributing to deal flow and providing access to non-auctioned, off-market, or relationship-driven SHOP transactions.
  • Management confirmed no fixed SHOP portfolio target after 2026, stating future exposure will depend on comparative returns, signaling flexible allocation aligned to shareholder value optimization.
  • Recent SHOP acquisitions are newer properties averaging nine years in age, supporting lower CapEx and positioning for future competitive supply cycles.
  • Limited new supply is reported in current SHOP markets, with management describing construction activity as "very light."

INDUSTRY GLOSSARY

  • SHOP: Seniors Housing Operating Portfolio, a business model where a REIT owns and operates seniors housing assets directly, rather than via triple-net leases.
  • SNF: Skilled Nursing Facility, referring to licensed healthcare facilities providing intensive medical and rehabilitative care.
  • RIDEA: REIT Investment Diversification and Empowerment Act, a structure allowing REITs to participate in operating income from healthcare properties through management agreements.
  • RevPOR: Revenue per Occupied Room, a metric for hospitality and seniors housing operators measuring average income per occupied unit.
  • Cap rate: Capitalization rate, annual net operating income divided by property value, a measure of yield and pricing in real estate investments.
  • FAD: Funds Available for Distribution, a REIT performance metric reflecting cash generated that is available to be distributed to shareholders.
  • Core FFO: Core Funds From Operations, a non-GAAP REIT earnings metric adjusted for nonrecurring and noncash items to reflect ongoing operating performance.
  • ATM program: At-the-Market program, a facility allowing companies to issue equity shares incrementally for raising capital directly in the public market.

Full Conference Call Transcript

Pamela J. Shelley-Kessler: Good morning, and thank you for joining us. Eight months after launching our SHOP initiative, we are almost halfway through our transformation from a lower-growth triple-net REIT into a faster-growing SHOP-focused REIT, a transformation that will lead to higher multiyear internal and external SHOP and earnings growth and to superior shareholder return. This transformation has included substantial investment in people, systems, and technology, which will continue to be a focus to support our aggressive growth plans. We have made great progress growing our seniors housing portfolio through SHOP, reflecting successful execution across every aspect of the business. Today, we are guiding to $600 million in acquisitions at the midpoint for 2026, all of which we anticipate will be in SHOP.

This acquisition guidance is nearly 70% higher than SHOP acquisitions in 2025. 2026 started off strong with $100 million in SHOP acquisitions already completed and $160 million on schedule to close in the second quarter, which takes us nearly halfway to our $600 million midpoint investment guidance for the year. Throughout our transformation, we have continued to maintain a strong balance sheet with well-laddered debt maturities and an FAD payout ratio below 80%. Since launching SHOP last May, we grew it to 25% of our investment portfolio by year-end.

Based on our 2026 acquisition guidance, we expect to end this year with SHOP growing to 45% of our investment portfolio and 40% of our NOI, capitalizing on LTC Properties, Inc.’s ability to accelerate our growth through acquisitions. By launching SHOP as a small-cap REIT, we are leveraging the denominator effect to our advantage. LTC’s smaller initial footprint provides the power to capture outsized growth where even modest investments have a meaningful and visible impact. Additionally, after the prepayment of the $180 million Prestige loan expected later this year, loans should be reduced to less than 10% of our portfolio and skilled nursing investments will represent less than 30% by the end of 2026.

This strategic portfolio transformation reflects our SHOP launch and rapid growth within a targeted 18-month period. With our transformation complete at the end of 2026, we see the opportunity for continued accelerated internal and external growth powered by SHOP in 2027. I will now turn the call over to J. Gibson Satterwhite to discuss our portfolio and strong SHOP performance.

J. Gibson Satterwhite: Thank you, Pam. We have undertaken the transformation to increase the organic growth and new investment growth profile of our portfolio and maximize risk-adjusted returns for our shareholders. To that end, we have focused over the last year and a half to develop and enhance our platform to position LTC and our operators for success, and we will continue to make further investments going forward to position LTC for profitable growth. In addition to adding accounting, FP&A and data analytics resources, we recently welcomed two Vice Presidents to our asset management team, both with extensive experience in systems development and seniors housing asset management. Our SHOP portfolio results support our 2025 strategy by outperforming expectations.

The original 13 properties converted to SHOP grew NOI over 2024 pro forma NOI by 22% and produced $16.2 million of combined rent and NOI in 2025, compared to $12.3 million of rent in 2024. The remainder of the SHOP portfolio exceeded expectations in the fourth quarter by contributing $5.9 million of NOI, about $700,000 above the midpoint of guidance. Our 2026 SHOP NOI guidance includes 13 properties we originally converted and 14 properties acquired to date. Our guidance for these 27 properties assumes 14% NOI growth at the midpoint for full year 2026 over pro forma 2025.

This subset of properties realized occupancy of 89.7% in 2025, which we are projecting will grow by about 100 to 150 basis points in 2026. We further project that RevPOR will grow by approximately 5% and that expenses will grow by 2.5%. We do want to note that the 2025 results for the 14 properties we have acquired include occupancy and performance as reported by the prior owners, adjusted for the current management fee structure. We will continue changing the mix of our portfolio in 2026. Prestige Healthcare has delivered notice of their intent to prepay on or about July 1 the $180 million loan, which is currently yielding approximately 11%.

Additionally, we expect to sell five skilled nursing properties and have certain loan payoffs totaling $90 million in the next 60 days. These transactions, together with our external growth through SHOP, will meaningfully reduce our skilled nursing and loan exposure. With that, I will turn things over to David for an update on our growth strategy.

David Boitano: Thank you, Gibson. In 2025, we put $360 million to work through SHOP acquisitions. By the end of the second quarter of this year, we will have added an additional $270 million, moving us rapidly towards our $600 million midpoint acquisition guidance and making 2026 our most active investment year yet. As we accelerate our growth towards an increasingly SHOP-weighted portfolio, LTC’s relationship-focused culture is the foundation of our success. In 2025, we closed two follow-on transactions with existing operating partners. Our momentum is continuing in 2026 with another follow-on deal completed and two more in the $160 million we expect to close shortly.

At the same time, we are in active conversations with operating partners new to LTC and are evaluating acquisitions to kick off those relationships. In a competitive senior housing acquisitions environment, our smaller asset base and personal relationship-driven strategy are competitive advantages. We find opportunities in both single and multi-property investments and do not need to chase overpriced large on-market transactions. We are keenly focused on every deal and every LTC operator relationship, each of which directly contributes to our growth and furthers our transformation into a SHOP growth engine. Existing and prospective operators desiring to grow their portfolios or retain assets when an investor wishes to exit seek LTC because we listen, we collaborate, and we engage.

The evidence of this success can be seen in our accelerating year-to-date growth that, in addition to the $160 million previously mentioned, includes an acquisition pipeline of over $500 million in deals under review and consists entirely of SHOP. Our acquisition strategy is to partner with experienced, regionally focused operating teams and add newer communities with lower CapEx requirements. These are stabilized assets, but that does not equate to low growth. We are buying assets with strong pricing power, high incremental margins, and durable contributions to earnings growth. Our expanding SHOP platform is positioned to perform over time, and we expect to achieve unlevered IRRs in the low to mid-teens.

I will now pass the call to Caroline for a review of our financial results.

Caroline L. Chikhale: Thank you, Dave. For the end of the year, we bolstered our growth capacity by expanding our credit facility to $800 million, including $200 million of term loans. We anticipate receiving nearly $270 million in asset sales and loan payoffs in 2026, which will be used to fund future investments. Using multiple levers, including proceeds from our ATM program, borrowings under our revolving line of credit, and asset sales where attractive pricing provides a better cost of capital, we feel very confident in our financial strength will support our ability to fuel our growth. With the $270 million of expected proceeds, our liquidity stands at $810 million on a pro forma basis.

We have minimal near-term debt maturities, giving us virtually no refinance risk. At year-end, our debt to annualized adjusted EBITDA for real estate was 4.5x, and our annualized adjusted fixed charge coverage ratio was 4.4x. While we are well within our stated leverage target of 4x to 5x, we believe we can reduce that further over time. Compared with the same quarter last year, core FFO per share improved $0.05 to $0.70, and core FAD per share improved $0.07 to $0.73. These results represent core FFO per share and core FAD per share growth of 8% and 11%, respectively.

The increases were primarily due to new SHOP acquisitions and triple-net conversions to SHOP, partially offset by an increase in interest expense and decreased rent related to asset sales. Our 2026 guidance for core FFO per share is projected to be in the range of $2.75 to $2.79 and core FAD per share in the range of $2.82 to $2.86. For the first quarter, we expect core FFO per share in the range of $0.66 to $0.68 and core FAD in the range of $0.68 to $0.70. Our 2026 guidance includes $400 million to $800 million of SHOP acquisitions with SHOP NOI in the range of $65 million to $77 million and FAD CapEx of approximately $5 million.

Additionally, our guidance includes the $270 million of proceeds from asset sales and loan payoffs. Other assumptions underpinning this guidance are detailed in yesterday’s earnings press release and supplemental, which are posted on our website. Now, I will turn the call over to Clint for some closing comments.

Clint B. Malin: Thanks, Caroline. 2026 will complete LTC’s transformation from a triple-net skilled nursing and seniors housing REIT fueling our growth through RIDEA to become a larger SHOP-focused REIT. Increased NOI growth will come organically through our existing portfolio and through new SHOP acquisitions. With our investment guidance of $600 million at the midpoint in 2026, SHOP will exceed $1 billion of assets and represent 45% of our portfolio by year-end. Including the SHOP acquisitions under contract, the average age of our SHOP portfolio will be nine years, reflecting our strategy of investing in newer SHOP communities that are best positioned to compete against future new developments.

We will drive strong organic SHOP NOI and per share growth through aligned operator relationships and the quality of the assets. In fact, we believe that organic NOI growth will double by the end of this year compared with our pre-transformation to SHOP. We have made rapid progress in executing our SHOP strategy. Most importantly, on behalf of the entire LTC team, we want to extend a sincere thank you to the operators who have placed their trust in us, helping us establish and grow our SHOP platform. We have eight SHOP operator relationships in our portfolio, six new to LTC since our launch, and in Q2, we will be adding two more.

Each one of these operator relationships represents a huge opportunity to continue driving LTC SHOP growth through management agreements that align interests to deepen our relationships. We have a simplified and compelling investment thesis, which we are executing upon with speed, determination, and conviction to power future growth by optimizing risk-adjusted returns to our shareholders, while increasing our organic and investment growth profile. This success is made possible by a talented group of tenured employees and new professionals recently joining our team, all coalescing around a transforming LTC that is standing out in the industry as well positioned for tremendous growth.

J. Gibson Satterwhite: With that, we are ready to take your questions. Thank you. We will now be conducting a question and answer session. Star one. Our first question today is coming from John Kilichowski from Wells Fargo. Your line is now live.

John Kilichowski: Hi, good morning. Thanks for taking my question. You know, this pivot is happening relatively quickly, and it sounds like messaging has been it is not if but when something happens to the SNF funding landscape. I am curious in your mind, what are the nearest one or two greatest threats that exist today that could cause some sort of rerating the market is not expecting?

Clint B. Malin: From a SNF perspective, John, I would say that there is a tremendous amount of private capital, I think, that is driving prices in skilled nursing. So that is one element that could have a change. And then just as we have generally seen over the years, skilled nursing, at cap rates that it has, it has stroke-of-the-pen risk, and things tend to happen when you least expect it. And we just see much more organic growth from investing in newer assets with a better growth profile. So that is really our thesis and why we are aggressively growing into SHOP.

John Kilichowski: Okay. Well, and the 14% same-store growth is a great starting point. I am curious, is this sort of a three- to four-year run rate as the business remains likely immune to supply shocks and demand is relatively known? Or do you forecast that moderating slightly as occupancy fully stabilizes at these assets?

J. Gibson Satterwhite: It is a fair question. Hi, John. This is Gibson. It is a fair question. This is a relatively new portfolio for us, and so we are comfortable with the guidance. I think the way to think about this is that pro forma occupancy that I gave in my prepared remarks, 89.7%, that is pretty close to stabilized levels. So we are encouraged to see that this year our expectations are in that mid-teens growth rate. We really just do not want to get into the out-years right now.

John Kilichowski: Thank you.

Clint B. Malin: Thank you.

Operator: Next question is coming from Austin Todd Wurschmidt from KeyBanc Capital Markets. Your line is now live.

Austin Todd Wurschmidt: Yes. Just going back to SHOP for a minute. Gibson, you had highlighted that the 13 original assets grew NOI by 22% last year on a pro forma basis versus 2024. Can you give us a sense how the 14% on the 27 assets compares, how that trended in 2025 or just versus the fourth quarter?

J. Gibson Satterwhite: Let me see if I can answer this in another way and see if that scratches your itch, Austin. If you look at our projections for 2025 over 2024 and you pull out that original 13, our growth rate of 14% is not going to materially change.

Austin Todd Wurschmidt: Got it. That is helpful. And then maybe just going back to John’s question a little bit differently here. You mentioned the 89% is nearing stabilization, but this portfolio does continue to evolve as you layer on additional acquisitions. Are your latest thoughts for the portfolio today as to where stabilized occupancy levels are? And what is the right feeling on where you can set in-place rent increases or drive RevPOR in the coming years?

David Boitano: Thanks. And this is Dave. You know, for stabilized occupancy, given the lack of supply that we see over the next few years, we feel occupancy can climb into the 90s. We did not project that in our 2026 guidance, but it is possible. And it is always a fine balance between occupancy and rate growth, and we feel that this portfolio has the opportunity for both.

Clint B. Malin: And this also is a key of what we are focused on, what we are investing in. It is newer assets; we have emphasized that in our comments about the average age. We feel those are going to be best positioned to compete against new development. That will happen. And we think in the interim, they will have pricing power to be able to drive growth. And we have done that by design, with intention, looking long term, to have assets that can effectively compete in the future.

Austin Todd Wurschmidt: And then what was the in-place rent increase tempo for this year?

J. Gibson Satterwhite: Well, the RevPAR guidance we gave is around 5%, and so that ranges across the portfolio from 4.5% up to 7%. A lot of the hay is in the barn with respect to year-end increases or increases that went into effect in January, but then we have some more that increase on anniversary, and then we have to see what happens with the street rate. So I think we are comfortable with our all-in RevPOR assumption in that 5% range.

Austin Todd Wurschmidt: Very helpful. Thanks, everyone.

Operator: Thank you. Next question is coming from Juan Sanabria from BMO Capital. Your line is now live.

Juan Sanabria: Good morning. Just hoping you could talk a little bit about the pipeline of investments and the year-one yields you are underwriting for SHOP. And then on the flip side, how we should be thinking about the disposition yields for some of the SNFs that you are selling, and you already have given us the loan piece for it. Thank you for that.

David Boitano: Juan, this is Dave. I will take the first half and I think Gibson will take the second half. So from an acquisition pipeline perspective, you saw in our remarks that we have $160 million under LOI and in process. We are looking at generally what we looked at last year, in terms of going-in year-one yield, about 7% or so, with good growth as we went beyond that.

Clint B. Malin: Also, one thing to think about on what we are looking at for deals, and this, as Pam mentioned in her prepared remarks, the size of LTC really we are using to our advantage to be able to grow because we can look at smaller transactions which have better price points to be able to drive initial yields. So we think that is a huge opportunity for us as we are growing this portfolio and are projecting our gross book to be 45% SHOP by the end of the year since we launched this midyear in 2025.

J. Gibson Satterwhite: Then, Juan, this is Gibson. The dispositions, I think the Prestige loan is a unique case where we had a heavy concentration with one operator in one state that caused some disruption a couple years back because of that state’s specific reimbursement program. And so that was a strategic decision to de-risk the portfolio and reduce operator concentration. We still have exposure to Prestige, and it is not a Prestige thing; it is just an overall operator concentration thing. On the rest, if you blend it together, we are selling at about an 8.2% cap.

And so there, if you think about that in terms of swapping out of older skilled nursing assets, as we have been doing on an opportunistic basis over the last year and a half or so—an 8.2% with 2% to 2.5% escalators—and we can recycle that into newer seniors housing assets that are really built and will be competitive over the long term. We feel like that is a good risk-reward trade for our shareholders.

Juan Sanabria: Thanks. And then I just wanted to ask about ALG. There was previously some discussion about some change in that portfolio going forward and some options they had. Just curious how we should be thinking about that piece of your exposure longer term.

Clint B. Malin: I think for ALG, they do have the purchase option we talked previously about. It is really more interest-rate sensitive for them to look at probably bond financing to take this out. So we look at this probably would be in 2027. We have three to four different investments with them. There can be a small—one of the small portfolios could trade maybe towards the end of this year possibly, but I would really think of it more as a 2027 event.

Juan Sanabria: And then if I could just be greedy, one more question. For the incremental financing, if you hit the top end of your acquisition guidance, how should we think about that? It sounds like you said leverage could go down. I am not sure if that is a product of EBITDA growing, or if we should assume that maybe the goal would be to over-equitize positions over and above the dispositions you have laid out or loan repayments. Just curious on the funding for the pipeline—at the midpoint or the high end in particular. Thanks.

Pamela J. Shelley-Kessler: Yes. Thanks, Juan. It is Pam. I think you are thinking about it right. The beauty of a higher-growing portfolio is that your deleveraging happens naturally a lot faster through EBITDA growth. But we would also look to over-equitize acquisitions if the pricing is right.

Clint B. Malin: Thank you.

Operator: Thank you. Our next question is coming from Michael Albert Carroll from RBC Capital Markets. Your line is now live.

Michael Albert Carroll: Yes, thanks. Clint or Dave, can you provide some more color on the competitive landscape for seniors housing deals right now? How difficult is it for you to find deals that you want to own that meet your underwriting? Then when you do find those transactions, where have cap rates trended? I know you have been talking about that 7% range for some time. Are we starting to see that tick a little bit lower? Is it hard to find yield at that 7% yield?

David Boitano: So this is Dave. Clint hit on this nicely in terms of the importance of our deal to LTC and how our scale works for us. We do a good job of finding transactions that are probably in that “one-z, two-z” time frame. In our size, and our customers or sellers know that they are important to us. One great benefit here: it has been sort of in fashion to have buyer interviews, so I can bring our C-suite, bring my CEOs onto those calls to underscore how important the deal is. And as you know, with any seller, certainly the execution matters an awful lot. So we can give a transaction a lot of attention and hyper-focus.

We have continued to see a pretty good stream of opportunities and, generally, in that first year, underwriting around 7% or so. It does not mean that there is not pressure, but our whole world is looking at a lot of transactions to find a few that are worthy of underwriting and progressing through the process. So we are seeing a good flow of potential opportunities, and we feel good that we will find the right ones for LTC out of that stream.

Clint B. Malin: And so with that backdrop, we have guided to $600 million at the midpoint for investments for 2026. And with deals closed and under contract, we are almost halfway through that. So although it is a competitive landscape, we feel that we have been able to be at the table on transactions. And a lot of the deals that we have, as Dave mentioned previously, are operators bringing us into transactions. We are having, and will soon have, 10 operator relationships in our portfolio. We think this can help drive continued access to deals, and when we are looking at them on one-z, two-z transactions, it can be helpful.

And another thing that we are seeing also on one of the transactions we are working on is a seller looking at a tax-efficient transaction. So we are looking at a down-REIT structure. When you look at financing transactions and utilizing equity, pricing through a down-REIT structure can be an attractive option for us.

Michael Albert Carroll: So then in this type of environment, if you look at the 7% yields, do you foresee by the end of this year that you might have to go below that, or is there enough transaction volume at that level that you think at least through this year you can still hit that 7% target?

David Boitano: As Clint mentioned, we have $270 million in the door. Those are set. So we have got another $300 million plus to go. Nothing is easy if you are going to do it well. We will be working hard to find the right deals all year long. But we are steadfast in working to maintain that kind of year-one yield of 7%. Definitely, there will be pressure in the industry. A lot of people are discovering senior housing and showing up at the table. We still feel like we have got a good opportunity, given our relationship focus and our style of execution, to find the deals that make sense for LTC.

Pamela J. Shelley-Kessler: And Mike, I have one more thing to add to that. Last year when we talked about our projected underwriting and being at 7%, we were very conservative. Our 2026 guidance is already at a year one of over 7.5%, like 7.7%. So we are already beating that. So we have created value there just in a few short months and expect to create more.

Michael Albert Carroll: Okay, great. That is helpful. And then just last for me, related to Prestige, on the remaining loans that LTC is holding after they potentially pay them off in July, or half of them, is there a desire to have them pay off those loans too? Or should we think about that as a longer-term hold that LTC plans to continue to maintain?

Clint B. Malin: You should think of it as a long-term hold. Right now, after the payoff of $180 million, we will have $90 million remaining with them. So that will be reducing concentrations, as Gibson spoke about, and they will probably fall outside of our top five operator relationships.

Michael Albert Carroll: And they do not have an option to prepay those?

Clint B. Malin: Correct.

Operator: Next question is coming from Richard Anderson from Cantor Fitzgerald. Your line is now live.

Richard Anderson: Thanks. Good morning. So I just want to make this sort of crystal clear. Is your expectation on a go-forward basis, 2027 and beyond, for your SHOP business to be producing low- to mid-teens type of same-store NOI growth? Is that the target you are going after, or is it something lower than that?

J. Gibson Satterwhite: We are going to see how this year plays out. We are excited about what we are seeing as we go into this year, and as we get into later in the year, Rich, we will update that. A few calls ago, we said that we were targeting going in at 7% and targeting low-teens IRR, and so that is basically telling you we expect mid-single-digit growth over the long term. But I think as we work through the process—we just acquired a lot of this, getting to really understand the portfolio—we are excited. And as Pam mentioned, in our projections, we are assuming higher yields on this initial purchase price than we did at acquisition.

So I think we are excited about the opportunity in 2026, and we hope that continues on, but we will update you as we get to the end of the year or throughout the year.

Richard Anderson: But the 22% NOI in the 13, that is really apples to oranges from a previous net lease structure, correct? Just so I understand that.

J. Gibson Satterwhite: Yes, that is fair.

Clint B. Malin: Just to give visibility in regard to what we had under our rent structure and what we had to store comparable metrics so it looked like under SHOP. That was why we broke that out separate.

J. Gibson Satterwhite: That is right. And that was—you know, we were in the structure able to capture the upside in those properties. That was something, strategically, as we thought about entering RIDEA—really started talking about seriously 18 months ago—how to go about doing that. We are just really excited that we are able to do that and capture the upside, and do so in a way that aligns our interests with our operators to incentivize them to drive performance. But yes, your comment that we are comparing that increase in NOI over the triple-net structure is fair.

But I will say that as we did that, we were able to capture the upside because the covers on that Anthem portfolio were pretty close to where the rents we were collecting.

Richard Anderson: Understood. Got that. Okay. In terms of the CapEx, I see your guidance is a little less than $5 million a year on whatever you own, weighted-average-wise for the year. $5 million just feels low to me for a $1 billion portfolio. Is that a function of its age? I wonder what you think the CapEx burden might be for LTC going forward when you are kind of fully built out at $1 billion or so of assets?

J. Gibson Satterwhite: That is a fair question. I will answer it this way. We have assumed basically about $1,500 a unit. For the portfolio that we currently have—the 30 properties—we did go through those recurring CapEx budgets and we feel pretty comfortable with those given the age of the assets. We did not feel like we were really stretching or deferring anything; we felt like that was what was requisite to keep the buildings competitive. We will have to see how that evolves. I will say the overall number includes an assumption—kind of a weighted average—so that $1,500 a unit for acquisitions going forward.

Pamela J. Shelley-Kessler: And I do not think you can compare our CapEx budget to our peers just because the makeup of our SHOP portfolio is so different. With an average age of nine years, those are really young, really new buildings that do not have a lot of CapEx requirements.

Clint B. Malin: And that, again, was strategic on our part because as we were introducing this portfolio, to simplify the integration of this and have assets that can compete against potential new development, we do see that over time that will increase. But for the interim and short-term period, that is why you are seeing a lower spend.

Richard Anderson: Okay. Young does become old, unfortunately, over time.

J. Gibson Satterwhite: We all age, Rich. But I will say as we worked through the budgets, we are not deferring things, so we are not targeting a number. We are committed to invest in the portfolio to keep it competitive. If that number drifts up to drive NOI growth, that is what we will do. But we did try to look at this from a holistic perspective, and we certainly were not looking to trim a number out of those maintenance CapEx budgets going forward.

Richard Anderson: Okay. Last for me. You call yourself done at the end of 2026 with this transformation—45% essentially SHOP. Is that your version of the efficient frontier, or will you expect the SHOP exposure to trickle up from that point forward? Or is a 50% exposure to SHOP your sweet spot?

Pamela J. Shelley-Kessler: We do not have a target on it, Rich. Transformation versus evolution. Transformation is something that we have done quickly—to Clint’s prepared remarks point, 18 months. That is really, really fast to change the complexion of a company. After this year, it is an evolution. We will continue to invest where we see the best return for our shareholders, which in our crystal ball looks like it will continue to be SHOP. But if it is not, we will pivot to the investment that drives shareholder value the best. For right now, it will be an evolution more towards SHOP than a transformation after this year.

Richard Anderson: Understood. Thanks very much, everyone.

Operator: Next question is coming from Omotayo Tejumade Okusanya from Deutsche Bank. Your line is now live.

Omotayo Tejumade Okusanya: Hey guys, thanks for taking the question. Given the RevPOR-expense spread you guys saw in the quarter, how confident are you that the SHOP portfolio can deliver the growth you are guiding to? And can you walk us through the key operational levers that you have relied on to get you there?

J. Gibson Satterwhite: I think the key levers are laid out in the supplemental on our guidance page. If you zoom out, with occupancy growth, our expense expectations are just slightly below what people would expect for inflation. I do not think that is a particularly aggressive assumption. Some may point to the top-line occupancy growth of 150 bps as maybe a little conservative. We are really trying to—this is a 30-property portfolio, the 27 that we guided to, which are the 13 we converted and then everything that we have acquired to date—so everything is at or near stabilization.

It is really hard with a portfolio of that size to zoom in more than the detail that we have given you on operational levers. We feel good about the RevPOR assumptions going forward. We think it is achievable. We do not think it is a layup. Expenses, same thing. We try to put the Goldilocks level of guidance out there that stretches our operators, but is achievable.

Omotayo Tejumade Okusanya: That makes sense. The second question I have is, I know you have talked about supply—supply has not really been an issue, but has anything around that changed at all?

Clint B. Malin: I would say not really supply. We have not seen that. What you do see more is that operators that have a track record in development are talking more about gearing up for development. I think that is where you are hearing more talk. It is not so much shovels in the ground; it is more that they see that there is going to be a need for supply in the future. They have experience doing it, and they are trying to prepare to participate in that when the time does come.

J. Gibson Satterwhite: Specifically within our SHOP portfolio, construction activity is very light. There may be one under construction, one under consideration, and some expansions here and there around the edges, but it is very light.

Omotayo Tejumade Okusanya: Makes sense. I appreciate the time, guys. Thank you.

Operator: We have reached the end of our question and answer session. Before I turn the call back to management, please note that today’s comments, including the question and answer session, may have included forward-looking statements subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in LTC Properties, Inc.’s filings with the Securities and Exchange Commission from time to time, including the company’s most recent 10-K dated 12/31/2025. LTC Properties, Inc. undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation.

I would now like to turn the floor back over to management for any further or closing comments.

Pamela J. Shelley-Kessler: Thank you, operator, and thanks to everyone for your thoughtful questions. We appreciate your continued interest, and we look forward to updating you on our progress next quarter.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.