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What changed in LTC PROPERTIES INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of LTC PROPERTIES INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+219 added−376 removedSource: 10-K (2025-02-24) vs 10-K (2024-02-15)

Top changes in LTC PROPERTIES INC's 2024 10-K

219 paragraphs added · 376 removed · 61 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

15 edited+2 added−2 removed9 unchanged
Biggest changeOur long-term leases and loans typically contain provisions, such as rent escalators, designed to mitigate the adverse impact of inflation. If the contractual or actual increases in rental income we receive from our operators do not keep pace with a rise in inflation, our financial condition and our results of operations could be adversely impacted.
Biggest changeIf the contractual or actual increases in income we receive from our lessees and borrowers do not keep pace with a rise in inflation, our results of operations could be adversely impacted. We may be unable to renew leases, or the terms of renewals or new leases could be less favorable than current leases.
Federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid could adversely affect us and the ability of our operators to make payments to us. The ability of our borrowers and lessees to generate revenue and profit determines the underlying value of that property to us.
Federal and state health care cost containment measures including reductions in reimbursement from third-party payors such as Medicare and Medicaid could adversely affect us and the ability of our operators to make payments to us. The ability of our lessees to generate revenue and profit determines the underlying value of that property to us.
Over the past three years, some of our operators have had or continue to have financial or legal difficulties resulting in non-payment of rent or bankruptcy. See
Over the past three years, some of our operators have had or continue to have financial or legal difficulties resulting in non-payment of rent. See
Revenues of our borrowers and skilled nursing center lessees are generally derived from payments for patient care. Sources of such payments include the federal Medicare program, state Medicaid programs, private insurance carriers, health care service plans, health maintenance organizations, preferred provider arrangements, self-insured employers, as well as the patients themselves .
Revenues of our skilled nursing center lessees are generally derived from payments for patient care. Sources of such payments include the federal Medicare program, state Medicaid programs, private insurance carriers, health care service plans, health maintenance organizations, preferred provider arrangements, self-insured employers, as well as the patients themselves .
Additionally, to retain current or attract new operators, we could be asked to provide rent concessions or undertake capital expenditures to improve properties. 19 ​ Table of Contents Operator financial or legal difficulties could delay or prevent collection of rent.
Additionally, to retain current or attract new operators, we could be asked to provide rent concessions or undertake capital expenditures to improve properties. 18 ​ Table of Contents Operator financial or legal difficulties could delay or prevent collection of rent.
If an uninsured loss occurs or a loss exceeds policy limits, we could lose both invested capital and anticipated revenue from a property. We rely on a few major operators. During the year ended December 31, 2023, approximately 28.9% of our revenues from leases and interest income from real estate investments were generated from three operators.
If an uninsured loss occurs or a loss exceeds policy limits, we could lose both invested capital and anticipated revenue from a property. We rely on a few major operators. During the year ended December 31, 2024, approximately 31.3% of our revenues from leases and interest income from real estate investments were generated from three operators.
Inflation, both real or anticipated as well as any resulting governmental policies, could adversely affect the economy and the costs of labor, goods and services to our tenants. Because tenants are typically required to pay all property operating expenses, increases in property-level expenses at our leased and mortgaged properties generally do not directly affect us.
Inflation, both real or anticipated as well as any related governmental policies, could adversely affect the economy and the costs of labor, goods and services to our operators. Because lessees and borrowers are typically required to pay all property operating expenses, increases in property-level expenses at our leased and mortgaged properties generally do not directly affect us.
Increased operating costs could have an adverse impact on our tenants and borrowers, if increases in their operating expenses exceed increases in their revenue, which may adversely affect our tenants’ and borrowers’ ability to pay rent and interest owed to us.
However, increased operating costs could have an adverse impact on our lessees and borrowers if increases in their operating expenses exceed increases in their revenue, which may adversely affect their ability to pay rent and interest owed to us.
Operators of health care facilities may become subject to claims that their services have resulted in injury or other adverse effects. As a non-possessory landlord, we contend we are not generally responsible for what takes place at properties we do not possess.
Insurance coverage maintained by our operators could be inadequate to protect against contingencies. Operators of health care facilities may become subject to claims that their services have resulted in injury or other adverse effects. As a non-possessory landlord, we contend we are not generally responsible for what takes place at properties we do not possess.
The failure, inability, or unwillingness of any of these operators to meet their obligations to us could materially reduce our cash flow as well as our results of operations. Inflation could adversely impact the operating expenses of our tenants.
The failure, inability, or unwillingness of any of these operators to meet their obligations to us could materially reduce our cash flow as well as our results of operations. The extent and pace of inflation could adversely impact our operators’ net income and our results of operations.
Delays in an operator receiving regulatory approvals from the applicable federal, state, or local government agencies, or the inability of an operator to receive such approvals, could prolong the period during which we are unable to receive lease or loan payments. We also could incur expenses in connection with any licensing, certification, or change-of-ownership proceedings.
Delays in an operator receiving regulatory approvals from the applicable federal, state, or local government agencies, or the inability of an operator to receive such approvals, could prolong the period during which we are unable to receive lease or loan payments.
The loss or imposition of restrictions on any required license, registration, certificate of need, provider agreement or certification would prevent a facility from operating in the manner intended by the operator.
The loss or imposition of restrictions on any required license, registration, certificate of need, provider agreement or certification would prevent a facility from operating in the manner intended by the operator. Additionally, failure by any of our operators to comply with applicable laws and regulations could result in adverse publicity and reputational harm, and therefore could harm our business.
There can be no assurance that a lessee will operate its lease through expiration or that a lessee will exercise an option to renew its lease upon expiration.
Approximately 63.0% of our revenue for the year ended December 31, 2024, was derived from operating lease rentals. There can be no assurance that a lessee will operate its lease through expiration or that a lessee will exercise an option to renew its lease upon expiration.
Failure to comply with federal, state, or local regulations could prohibit operation of health care facilities.
We also could incur expenses in connection with any licensing, certification, or change-of-ownership proceedings. 17 ​ Table of Contents Failure to comply with federal, state, or local regulations could prohibit operation of health care facilities.
An increase in our tenants’ and borrowers’ expenses and a failure of their revenues to increase at least with inflation could adversely impact our tenants’, borrowers’ and our financial condition and our results of operations. Inflation could rise at rates that outpace contractual or actual increases in rental income.
An increase in our lessees’ and borrowers’ expenses and a failure of their revenues to increase at least with inflation could adversely impact their net operating income and our results of operations. In addition, our long-term leases and loans typically contain provisions, such as rent escalators, designed to mitigate the adverse impact of inflation.
Removed
Additionally, failure by any of our operators to comply with applicable laws and regulations could result in adverse publicity and reputational harm, and therefore could harm our business. 18 ​ Table of Contents Insurance coverage maintained by our operators could be inadequate to protect against contingencies.
Added
Further, the ability of our operators to comply with applicable regulations, including minimum staffing requirements, could be adversely impacted by shifts in the labor market and increases in inflation.
Removed
We may be unable to renew leases, or the terms of renewals or new leases could be less favorable than current leases. Approximately 64.6% of our revenue for the year ended December 31, 2023, was derived from operating lease rentals.
Added
Additionally, changes in federal, state, or local laws limiting REIT investment in the health care industry, reducing health care related benefits for REITs, or requiring additional approvals for health care entities to do business with REITs, could have a material adverse effect on our financial condition and operations.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

23 edited+8 added−167 removed21 unchanged
Biggest changeThe master lease is for six years at an initial annual rent of $3,300. ​ 27 ​ Table of Contents ​ The following chart represents the 10 states with the highest percentage of gross investment for our owned properties as of December 31, 2023: The following table sets forth certain information regarding our lease expirations for our owned properties as of December 31, 2023 (dollars amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Annualized % of Annualized ​ ​ No. of ​ No. of ​ No. of ​ No. of ​ No. of ​ Rental ​ Rental Income Year ​ SNFs ​ ALFs ​ Others ​ Beds/Units ​ Operators ​ Income (1) ​ Expiring 2023 — 22 — 948 1 (2) ​ $ 13,362 11.7 % 2024 ​ 11 ​ 11 ​ — ​ 1,995 ​ 3 ​ ​ 7,786 ​ 6.8 % 2025 6 10 1 1,447 5 ​ ​ 8,836 7.8 % 2026 15 5 — 2,073 4 ​ ​ 19,393 17.0 % 2027 — 9 — 611 3 ​ ​ 11,340 10.0 % 2028 3 1 — 404 3 ​ ​ 4,125 3.6 % 2029 5 4 — 1,269 5 ​ ​ 9,428 8.3 % 2030 1 1 — 168 2 ​ ​ 3,386 3.0 % 2031 — 17 — 1,146 3 ​ ​ 15,430 13.5 % 2032 5 — — 429 1 ​ ​ 6,079 5.3 % 2033 4 1 — 816 2 ​ ​ 14,861 13.0 % TOTAL 50 ​ 81 (3) ​ 1 11,306 (3) ​ ​ ​ $ 114,026 ​ 100.0 % (1) Represents annualized contractual Generally Accepted Accounting Principles (“GAAP”) rent for leased properties, excluding variable rental income from lessee reimbursement of our real estate taxes for investments as of December 31, 2023. ​ (2) Represents a master lease with Brookdale covering 22 ALFs.
Biggest changeCarolina 2 2 ​ — ​ 387 ​ — ​ 16 ​ 41,902 ​ ​ Tennessee — 2 ​ — ​ 141 ​ — ​ 12 ​ 5,275 ​ ​ Texas 9 20 ​ — ​ 2,910 ​ — ​ 54 ​ 306,871 ​ ​ Virginia — 4 ​ — ​ 500 ​ — ​ 13 ​ 30,209 ​ ​ Wisconsin 6 1 ​ — ​ 580 ​ — ​ 73 ​ 93,844 ​ ​ TOTAL 72 50 ​ 1 ​ 10,827 ​ $ — ​ 53 ​ $ 1,333,078 ​ ​ (1) Weighted average remaining months in lease term as of December 31, 2024. ​ (2) Includes three parcels of land held-for-use. ​ ​ 26 ​ Table of Contents ​ The following chart represents the 10 states with the highest percentage of gross investment for our owned properties as of December 31, 2024: The following table sets forth certain information regarding our lease expirations for our owned properties as of December 31, 2024 (dollars amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Annualized % of Annualized ​ ​ No. of ​ No. of ​ No. of ​ No. of ​ No. of ​ Rental ​ Rental Income Year ​ ALFs ​ SNFs ​ Others ​ Beds/Units ​ Operators ​ Income (1) ​ Expiring 2025 ​ 13 ​ 2 ​ — ​ 948 ​ 5 ​ $ 4,406 ​ 3.9 % 2026 7 15 — 2,216 6 ​ ​ 18,694 16.4 % 2027 10 — — 704 3 ​ ​ 11,271 9.9 % 2028 1 14 — 1,848 4 ​ ​ 13,125 11.5 % 2029 17 5 — 1,657 3 ​ ​ 14,392 12.6 % 2030 6 5 1 1,063 4 ​ ​ 15,427 13.5 % 2031 17 — — 1,146 3 ​ ​ 15,588 13.7 % 2032 — 5 — 429 1 ​ ​ 6,168 5.5 % 2033 1 4 — 816 2 ​ ​ 14,862 13.0 % TOTAL 72 ​ 50 ​ 1 10,827 ​ ​ ​ $ 113,933 ​ 100.0 % (1) Represents annualized contractual GAAP rent for leased properties, excluding variable rental income from lessee reimbursement of our real estate taxes, for the month of December 2024 for investments as of December 31, 2024. ​ ​ 27 ​ Table of Contents Financing Receivables.
We annually retain a third-party vendor to test our information systems security and we annually review information systems security protocols of our vendors that interact with our financial data. We maintain insurance coverage that may, subject to policy terms and conditions, including deductibles, cover particular aspects of cybersecurity risk, such as social engineering and computer system fraud.
We annually retain a third-party vendor to test our information systems security and we annually review information systems security protocols of our vendors that interact with our financial data. We maintain insurance coverage that may, subject to policy terms and conditions, including deductibles, cover particular aspects of cybersecurity risk, such as data breaches, ransomware, social engineering and computer system fraud.
Issuer Purchases of Equity Securities None. ​ 30 ​ Table of Contents Stock Performance Graph The National Association of Real Estate Investment Trusts (“NAREIT”), an organization representing U.S. REITs and publicly traded real estate companies, classifies a company with 50% or more of assets directly or indirectly in the equity ownership of real estate as an equity REIT.
Issuer Purchases of Equity Securities None. ​ 29 ​ Table of Contents Stock Performance Graph The National Association of Real Estate Investment Trusts (“NAREIT”), an organization representing U.S. REITs and publicly traded real estate companies, classifies a company with 50% or more of assets directly or indirectly in the equity ownership of real estate as an equity REIT.
Dividend We declared and paid total cash distributions on common stock as set forth below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Declared ​ Paid ​ ​ 2023 ​ 2022 ​ 2023 ​ 2022 First quarter $ 0.57 $ 0.57 $ 0.57 $ 0.57 ​ Second quarter ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ Third quarter ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ Fourth quarter ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ ​ ​ $ 2.28 ​ $ 2.28 ​ $ 2.28 ​ $ 2.28 ​ We intend to distribute to our stockholders an amount at least sufficient to satisfy the distribution requirements of a REIT.
Dividend We declared and paid total cash distributions on common stock as set forth below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Declared ​ Paid ​ ​ 2024 ​ 2023 ​ 2024 ​ 2023 First quarter $ 0.57 $ 0.57 $ 0.57 $ 0.57 ​ Second quarter ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ Third quarter ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ Fourth quarter ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ $ 0.57 ​ ​ ​ $ 2.28 ​ $ 2.28 ​ $ 2.28 ​ $ 2.28 ​ We intend to distribute to our stockholders an amount at least sufficient to satisfy the distribution requirements of a REIT.
The following graph summarizes our gross investments as of December 31, 2023: Substantially all of our revenues and sources of cash flows from operations are derived from operating lease rentals, interest earned on outstanding loans receivable and income from investments in unconsolidated joint ventures.
The following graph summarizes our gross investments as of December 31, 2024: Substantially all of our revenues and sources of cash flows from operations are derived from operating lease rentals, interest earned on outstanding loans receivable and income from investments in unconsolidated joint ventures.
We are not aware of any material losses to our business or results of operations in the past three years due to information technology systems failures, data breaches, or other cybersecurity incidents. 26 ​ Table of Contents Item 2.
We are not aware of any material losses to our business or results of operations in the past three years due to information technology systems failures, data breaches, or other cybersecurity incidents. 25 ​ Table of Contents Item 2.
We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims and lawsuits. Item 4. MINE SAFETY DISCLOSURE S Not applicable PART II Item 5.
We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims and lawsuits. Item 4. MINE SAFETY DISCLOSURE S Not applicable 28 ​ Table of Contents PART II Item 5.
Because such “DTC participants” are brokers and other institutions holding shares of our common stock 29 ​ Table of Contents on behalf of their customers, we do not know the actual number of unique stockholders represented by these record holders.
Because such “DTC participants” are brokers and other institutions holding shares of our common stock on behalf of their customers, we do not know the actual number of unique stockholders represented by these record holders.
Accordingly, LTC is considered an equity REIT. This graph compares the cumulative total stockholder return on our common stock from December 31, 2018 to December 31, 2023 with the cumulative stockholder total return of (1) the Standard & Poor’s 500 Stock Index and (2) the NAREIT Equity REIT Index.
Accordingly, LTC is considered an equity REIT. This graph compares the cumulative total stockholder return on our common stock from December 31, 2019 to December 31, 2024 with the cumulative stockholder total return of (1) the Standard & Poor’s 500 Stock Index and (2) the NAREIT Equity REIT Index.
The stock performance graph shall not be deemed incorporated by reference into any filing by us under the Securities Act of 1933 or the Securities Exchange Act of 1934 except to the extent that we specifically incorporate such information by reference and shall not otherwise be deemed filed under such Acts. ​ Item 6.
The stock performance graph shall not be deemed incorporated by reference into any filing by us under the Securities Act of 1933 or the Securities Exchange Act of 1934 except to the extent that we specifically incorporate such information by reference and shall not otherwise be deemed filed under such Acts. ​ Item 6. [Reserved ] ​ ​ 30 ​ Table of Contents Item 7.
MARKE T FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is listed on the NYSE under the symbol “LTC”.
MARKE T FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “LTC”.
Holders As of February 8, 2024, we had approximately 396 holders of our common stock, as determined by counting our record holders and the number of participants reflected in a security position listing provided to us by the Depository Trust Company.
Holders As of February 18, 2025, we had approximately 393 holders of our common stock, as determined by counting our record holders and the number of participants reflected in a security position listing provided to us by the Depository Trust Company.
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.
To the extent that the operators experience 31 ​ Table of Contents 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.
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 and internally generated cash flows. Our investments generate internal cash from rent and interest receipts and principal payments on mortgage loans receivable.
New investments are generally funded from cash on hand, temporary borrowings under our unsecured revolving line of credit and internally generated cash flows. Our investments generate internal cash from rent and interest receipts and principal payments on mortgage loans receivable.
The following table sets forth certain information regarding our owned properties as of December 31, 2023 ( dollars amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ No. of ​ No. of ​ No. of ​ No. of ​ ​ ​ ​ Lease ​ Gross ​ Location ​ ALFs ​ SNFs ​ Others ​ Beds/Units ​ Encumbrances ​ Term (1) ​ Investments ​ Alabama — 1 ​ — ​ 174 ​ $ — ​ 28 ​ $ 9,910 ​ ​ Arizona — 3 ​ — ​ 613 ​ — ​ 68 ​ 28,496 ​ ​ California 3 1 ​ — ​ 402 ​ — ​ 58 ​ 69,717 ​ ​ Colorado 13 — ​ — ​ 657 ​ — ​ 46 ​ 105,420 ​ ​ Florida 1 4 ​ — ​ 516 ​ — ​ 41 ​ 40,545 ​ ​ Georgia 1 — ​ — ​ 70 ​ — ​ 6 ​ 14,556 ​ ​ Illinois 5 — ​ — ​ 418 ​ — ​ 65 ​ 88,896 ​ ​ Kansas 8 — ​ — ​ 431 ​ — ​ 60 ​ 58,153 ​ ​ Kentucky — 2 ​ — ​ 286 ​ — ​ 120 ​ 48,716 ​ ​ Michigan 2 — ​ — (2) ​ 156 ​ — ​ 16 ​ 22,387 ​ ​ Missouri ​ 1 ​ 2 ​ — ​ 253 ​ ​ — ​ 78 ​ ​ 52,952 ​ ​ Nevada ​ — ​ — ​ 1 ​ 118 ​ ​ — ​ 14 ​ ​ 11,062 ​ ​ New Jersey 3 — ​ — ​ 166 ​ — ​ 48 ​ 59,059 ​ ​ New Mexico — 5 ​ — ​ 608 ​ — ​ 28 ​ 42,581 ​ ​ N.
The following table sets forth certain information regarding our owned properties as of December 31, 2024 ( dollars amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ No. of ​ No. of ​ No. of ​ No. of ​ ​ ​ ​ Lease ​ Gross ​ Location ​ ALFs ​ SNFs ​ Others ​ Beds/Units ​ Encumbrances ​ Term (1) ​ Investments ​ Alabama — 1 ​ — ​ 174 ​ $ — ​ 16 ​ $ 10,419 ​ ​ Arizona — 3 ​ — ​ 613 ​ — ​ 56 ​ 28,496 ​ ​ California 3 1 ​ — ​ 402 ​ — ​ 33 ​ 69,717 ​ ​ Colorado 12 — ​ — ​ 657 ​ — ​ 62 ​ 102,381 ​ ​ Florida — 4 ​ — ​ 456 ​ — ​ 22 ​ 32,865 ​ ​ Georgia 1 — ​ — ​ 70 ​ — ​ 12 ​ 15,098 ​ ​ Illinois 5 — ​ — ​ 418 ​ — ​ 52 ​ 89,662 ​ ​ Kansas 8 — ​ — ​ 431 ​ — ​ 57 ​ 60,279 ​ ​ Kentucky — 2 ​ — ​ 286 ​ — ​ 108 ​ 48,716 ​ ​ Michigan 2 — ​ — (2) ​ 156 ​ — ​ 5 ​ 22,671 ​ ​ Missouri ​ 1 ​ 2 ​ — ​ 253 ​ ​ — ​ 66 ​ ​ 52,952 ​ ​ Nevada ​ — ​ — ​ 1 ​ 118 ​ ​ — ​ 62 ​ ​ 11,062 ​ ​ New Jersey 3 — ​ — ​ 166 ​ — ​ 36 ​ 59,059 ​ ​ New Mexico — 5 ​ — ​ 608 ​ — ​ 16 ​ 42,920 ​ ​ N.
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. 32 ​ Table of Contents In addition to our monitoring and research efforts, we also structure our investments to help mitigate payment risk.
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.
Some operating leases, financing 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.
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. Depending upon the availability and cost of external capital, we anticipate making additional investments in health care related properties.
The following table sets forth certain information regarding our financing receivables as of December 31, 2023 (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ Number ​ Initial ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Annualized Interest ​ ​ ​ of ​ of ​ of ​ Contractual ​ ​ Months ​ ​ Gross ​ ​ LTC ​ ​ Income from State ​ ​ Properties ​ Properties ​ Beds/Units ​ Cash Yield ​ ​ to Maturity ​ ​ Investments ​ ​ Contributions ​ ​ Financing Rec NC ​ ​ ALF/MC ​ 11 ​ 523 ​ 7.25 % ​ 109 ​ $ 121,321 ​ $ 117,490 ​ $ 9,706 FL ​ ​ SNF ​ 3 ​ 299 ​ 7.25 % ​ 104 ​ ​ 76,691 ​ ​ 61,661 ​ ​ 5,615 ​ ​ ​ ​ ​ 14 ​ 822 ​ ​ ​ ​ ​ ​ $ 198,012 ​ $ 179,151 ​ $ 15,321 Mortgage Loans.
The following table sets forth certain information regarding our financing receivables as of December 31, 2024 (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ Number ​ Initial ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Annualized Interest ​ ​ ​ of ​ of ​ of ​ Contractual ​ ​ Months ​ ​ Gross ​ ​ LTC ​ ​ Income from State ​ ​ Properties ​ Properties ​ Beds/Units ​ Cash Yield ​ ​ to Maturity ​ ​ Investments ​ ​ Contributions ​ ​ Financing Rec FL ​ ​ SNF ​ 3 ​ 299 ​ 7.25 % ​ 93 ​ $ 76,603 ​ $ 62,278 ​ $ 5,608 NC ​ ​ ALF/MC ​ 11 ​ 523 ​ 7.25 % ​ 97 ​ ​ 121,419 ​ ​ 117,588 ​ ​ 9,714 NC/SC ​ ​ ILF/ALF/MC ​ 13 ​ 523 ​ 7.25 % ​ 114 ​ ​ 122,460 ​ ​ 64,450 ​ ​ 9,502 NC ​ ​ ALF ​ 4 ​ 217 ​ 7.25 % ​ 114 ​ ​ 41,000 ​ ​ 37,985 ​ ​ 3,181 ​ ​ ​ ​ ​ 31 ​ 1,562 ​ ​ ​ ​ ​ ​ $ 361,482 ​ $ 282,301 ​ $ 28,005 Mortgage Loans.
The comparison assumes $100 was invested on December 31, 2018 in our common stock and in each of the foregoing indices and assumes the reinvestment of dividends. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period Ending Index ​ 12/31/18 ​ 12/31/19 ​ 12/31/20 ​ 12/31/21 ​ 12/31/22 ​ 12/31/23 LTC Properties, Inc. $ 100.00 $ 112.79 $ 104.27 $ 97.21 $ 107.44 $ 103.95 ​ NAREIT Equity $ 100.00 $ 126.00 $ 115.92 $ 166.04 $ 125.58 $ 142.83 ​ S&P 500 $ 100.00 $ 131.49 $ 155.68 $ 200.37 $ 164.08 $ 207.21 ​ The stock performance depicted in the above graph is not necessarily indicative of future performance.
The comparison assumes $100 was invested on December 31, 2019 in our common stock and in each of the foregoing indices and assumes the reinvestment of dividends. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period Ending Index ​ 12/31/19 ​ 12/31/20 ​ 12/31/21 ​ 12/31/22 ​ 12/31/23 ​ 12/31/24 LTC Properties, Inc. $ 100.00 $ 92.44 $ 86.19 $ 95.26 $ 92.16 $ 105.93 ​ NAREIT Equity $ 100.00 $ 92.00 $ 131.78 $ 99.67 $ 113.35 $ 123.25 ​ S&P 500 $ 100.00 $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 ​ The stock performance depicted in the above graph is not necessarily indicative of future performance.
Item 1C. CYBERSECURITY Cybersecurity is an integral part of risk management at our company. Cybersecurity is overseen by LTC’s Board of Directors (the “Board”) and the Audit Committee of the Board (the “Audit Committee”), along with subject matter experts serving our company including our information technology director.
Item 1C. CYBERSECURITY Cybersecurity is an integral part of risk management at our company. We have engaged a third-party cybersecurity firm along with our information technology director to monitor the cybersecurity risk facing our company and provide quarterly update to the Board of Directors (the “Board”).
Traditionally, we have taken a conservative approach to managing our business, choosing to maintain liquidity and exercise patience until favorable investment opportunities arise. 33 ​ Table of Contents Portfolio Overview The following tables summarize our real estate investment portfolio as of December 31, 2023 ( dollar amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twelve Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ ​ ​ ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ Gross ​ of ​ ​ Rental ​ ​ of Total ​ ​ Owned Properties ​ Properties (1) ​ Beds (2) ​ Units (2) ​ Investments ​ Investments ​ ​ Revenue ​ ​ Revenues ​ ​ Assisted Living ​ 83 ​ — ​ 4,839 ​ $ 770,509 ​ 36.0 % ​ $ 50,837 ​ ​ 28.3 % ​ Skilled Nursing ​ 50 ​ 6,113 ​ 236 ​ ​ 596,818 ​ 27.9 % ​ ​ 58,989 ​ ​ 32.8 % ​ Other (3) ​ 1 ​ 118 ​ — ​ ​ 12,005 ​ 0.6 % ​ ​ 998 ​ ​ 0.6 % ​ Total Owned Properties ​ 134 ​ 6,231 ​ 5,075 ​ ​ 1,379,332 ​ 64.5 % ​ ​ 110,824 (5) ​ ​ 61.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Interest Income ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross ​ of ​ ​ from Financing ​ ​ of Total ​ ​ Financing Receivables ​ Properties (1) ​ Beds ​ Units ​ ​ Investments ​ Investments ​ ​ Receivable ​ ​ Revenues ​ ​ Assisted Living ​ 11 ​ — ​ 523 ​ ​ 121,321 ​ 5.7 % ​ ​ 9,625 ​ ​ 5.4 % ​ Skilled Nursing ​ 3 ​ 299 ​ — ​ ​ 76,691 ​ 3.6 % ​ ​ 5,618 ​ ​ 3.1 % ​ Total Financing Receivables ​ 14 ​ 299 ​ 523 ​ ​ 198,012 ​ 9.3 % ​ ​ 15,243 ​ ​ 8.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Interest Income ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross ​ of ​ ​ from Mortgage ​ ​ of Total ​ ​ Mortgage Loans ​ Properties (1) ​ Beds ​ Units ​ ​ Investments ​ Investments ​ ​ Loans ​ ​ Revenues ​ ​ Assisted Living ​ 22 ​ — ​ 1,192 ​ ​ 174,941 ​ 8.2 % ​ ​ 12,827 ​ ​ 7.1 % ​ Skilled Nursing ​ 24 ​ 3,041 ​ — ​ ​ 304,314 ​ 14.2 % ​ ​ 34,686 ​ ​ 19.3 % ​ Other (4) ​ — ​ — ​ — ​ ​ 2,825 ​ 0.1 % ​ ​ 212 ​ ​ 0.1 % ​ Total Mortgage Loans ​ 46 ​ 3,041 ​ 1,192 ​ ​ 482,080 ​ 22.5 % ​ ​ 47,725 ​ ​ 26.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Interest ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross ​ of ​ ​ and other ​ ​ of Total ​ ​ Notes Receivable ​ Properties (1) ​ Beds ​ Units ​ ​ Investments ​ Investments ​ ​ Income ​ ​ Revenues ​ ​ Assisted Living ​ 6 ​ — ​ 751 ​ ​ 47,432 ​ 2.2 % ​ ​ 3,926 ​ ​ 2.2 % ​ Skilled Nursing ​ — ​ — ​ — ​ ​ 13,669 ​ 0.6 % ​ ​ 558 ​ ​ 0.3 % ​ Total Notes Receivable ​ 6 ​ — ​ 751 ​ ​ 61,101 ​ 2.8 % ​ ​ 4,484 (6) ​ ​ 2.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Income from ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross of ​ ​ Unconsolidated ​ ​ of Total ​ ​ Unconsolidated Joint Ventures ​ Properties (1) ​ Beds ​ Units ​ ​ Investments Investments ​ ​ Joint Ventures ​ ​ Revenues ​ ​ Assisted Living ​ 2 ​ — ​ 362 ​ ​ 19,340 ​ 0.9 % ​ ​ 1,504 ​ ​ 0.8 % ​ Total Unconsolidated Joint Ventures ​ 2 ​ — ​ 362 ​ ​ 19,340 ​ 0.9 % ​ ​ 1,504 ​ ​ 0.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Portfolio ​ 202 ​ 9,571 ​ 7,903 ​ $ 2,139,865 ​ 100.0 % ​ $ 179,780 ​ ​ 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Number of ​ ​ ​ ​ Percentage ​ ​ ​ ​ of ​ SNF ​ ALF ​ Gross ​ of ​ ​ Summary of Properties by Type ​ Properties (1) ​ Beds (2) ​ Units (2) ​ Investments ​ Investments ​ ​ Assisted Living ​ 124 ​ — ​ 7,667 ​ $ 1,133,543 ​ 53.0 % ​ Skilled Nursing ​ 77 ​ 9,453 ​ 236 ​ ​ 991,492 ​ 46.3 % ​ Other (3) (4) ​ 1 ​ 118 ​ — ​ ​ 14,830 ​ 0.7 % ​ Total Portfolio ​ 202 ​ 9,571 ​ 7,903 ​ $ 2,139,865 ​ 100.0 % ​ (1) We have investments in owned properties, properties we own accounted for as financing receivables, mortgage loans, notes receivable and unconsolidated joint ventures in 26 states to 30 different operators. ​ (2) See Item 2.
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. 32 ​ Table of Contents Portfolio Overview The following tables summarize our real estate investment portfolio as of December 31, 2024 ( dollar amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twelve Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ ​ ​ ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ Gross ​ of ​ ​ Rental ​ ​ of Total ​ ​ Owned Properties ​ Properties (1) ​ Beds (2) ​ Units (2) ​ Investments ​ Investments ​ ​ Revenue ​ ​ Revenues ​ ​ Assisted Living ​ 72 ​ — ​ 4,360 ​ $ 723,010 ​ 34.6 % ​ $ 51,537 ​ ​ 28.3 % ​ Skilled Nursing ​ 50 ​ 6,113 ​ 236 ​ ​ 598,063 ​ 28.6 % ​ ​ 63,479 ​ ​ 34.9 % ​ Other (3) ​ 1 ​ 118 ​ — ​ ​ 12,005 ​ 0.6 % ​ ​ 1,124 ​ ​ 0.6 % ​ Total Owned Properties ​ 123 ​ 6,231 ​ 4,596 ​ ​ 1,333,078 ​ 63.8 % ​ ​ 116,140 (4) ​ ​ 63.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Interest Income ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross ​ of ​ ​ from Financing ​ ​ of Total ​ ​ Financing Receivables ​ Properties (1) ​ Beds ​ Units ​ ​ Investments ​ Investments ​ ​ Receivable ​ ​ Revenues ​ ​ Assisted Living ​ 28 ​ — ​ 1,263 ​ ​ 284,879 ​ 13.6 % ​ ​ 16,052 ​ ​ 8.8 % ​ Skilled Nursing ​ 3 ​ 299 ​ — ​ ​ 76,603 ​ 3.7 % ​ ​ 5,611 ​ ​ 3.1 % ​ Total Financing Receivables ​ 31 ​ 299 ​ 1,263 ​ ​ 361,482 ​ 17.3 % ​ ​ 21,663 ​ ​ 11.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Interest Income ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross ​ of ​ ​ from Mortgage ​ ​ of Total ​ ​ Mortgage Loans ​ Properties (1) ​ Beds ​ Units ​ ​ Investments ​ Investments ​ ​ Loans ​ ​ Revenues ​ ​ Assisted Living ​ 5 ​ — ​ 334 ​ ​ 44,209 ​ 2.1 % ​ ​ 3,540 ​ ​ 1.9 % ​ Skilled Nursing ​ 22 ​ 2,726 ​ — ​ ​ 271,525 ​ 13.0 % ​ ​ 33,021 ​ ​ 18.1 % ​ Total Mortgage Loans ​ 27 ​ 2,726 ​ 334 ​ ​ 315,734 ​ 15.1 % ​ ​ 36,561 (5) ​ ​ 20.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Interest ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross ​ of ​ ​ and other ​ ​ of Total ​ ​ Notes Receivable ​ Properties (1) ​ Beds ​ Units ​ ​ Investments ​ Investments ​ ​ Income ​ ​ Revenues ​ ​ Assisted Living ​ 6 ​ — ​ 765 ​ ​ 46,150 ​ 2.2 % ​ ​ 4,911 ​ ​ 2.7 % ​ Skilled Nursing ​ — ​ — ​ — ​ ​ 1,567 ​ 0.1 % ​ ​ 353 ​ ​ 0.2 % ​ Total Notes Receivable ​ 6 ​ — ​ 765 ​ ​ 47,717 ​ 2.3 % ​ ​ 5,264 (5) ​ ​ 2.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Percentage ​ ​ Income from ​ ​ Percentage ​ ​ ​ ​ Number of ​ SNF ​ ALF ​ ​ Gross of ​ ​ Unconsolidated ​ ​ of Total ​ ​ Unconsolidated Joint Ventures ​ Properties (1) ​ Beds ​ Units ​ ​ Investments Investments ​ ​ Joint Ventures ​ ​ Revenues ​ ​ Assisted Living ​ 2 ​ — ​ 376 ​ ​ 19,340 ​ 1.0 % ​ ​ 1,558 ​ ​ 0.9 % ​ Skilled Nursing ​ 1 ​ 104 ​ — ​ ​ 11,262 ​ 0.5 % ​ ​ 884 ​ ​ 0.5 ​ ​ Total Unconsolidated Joint Ventures ​ 3 ​ 104 ​ 376 ​ ​ 30,602 ​ 1.5 % ​ ​ 2,442 ​ ​ 1.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Portfolio ​ 190 ​ 9,360 ​ 7,334 ​ $ 2,088,613 ​ 100.0 % ​ $ 182,070 ​ ​ 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Number of ​ ​ ​ ​ Percentage ​ ​ ​ ​ of ​ SNF ​ ALF ​ Gross ​ of ​ ​ Summary of Properties by Type ​ Properties (1) ​ Beds (2) ​ Units (2) ​ Investments ​ Investments ​ ​ Assisted Living ​ 113 ​ — ​ 7,098 ​ $ 1,117,588 ​ 53.5 % ​ Skilled Nursing ​ 76 ​ 9,242 ​ 236 ​ ​ 959,020 ​ 45.9 % ​ Other (3) ​ 1 ​ 118 ​ — ​ ​ 12,005 ​ 0.6 % ​ Total Portfolio ​ 190 ​ 9,360 ​ 7,334 ​ $ 2,088,613 ​ 100.0 % ​ (1) We have investments in owned properties, properties we own accounted for as financing receivables, mortgage loans, notes receivable and unconsolidated joint ventures in 25 states to 30 different operators. ​ (2) See
Carolina 5 — ​ — ​ 210 ​ — ​ — (3) ​ 14,339 ​ ​ Ohio 8 2 ​ — ​ 822 ​ — ​ 92 ​ 142,669 ​ ​ Oklahoma 5 — ​ — ​ 184 ​ — ​ 34 ​ 11,202 ​ ​ Oregon 2 1 ​ — ​ 266 ​ — ​ 65 ​ 38,279 ​ ​ S.
Carolina 5 — ​ — ​ 210 ​ — ​ 61 ​ 14,980 ​ ​ Ohio 8 2 ​ — ​ 822 ​ — ​ 81 ​ 144,353 ​ ​ Oklahoma 5 — ​ — ​ 184 ​ — ​ 22 ​ 11,068 ​ ​ Oregon 2 1 ​ — ​ 285 ​ — ​ 53 ​ 38,279 ​ ​ S.
The following table sets forth certain information regarding our mortgage loans as of December 31, 2023 ( dollars amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Original ​ ​ Current ​ ​ No. of ​ No. of ​ No. of ​ No. of ​ Interest ​ Months to ​ Face Amount ​ Gross ​ Annual Debt Location ​ SNFs (1) ​ ALFs (1) ​ OTHs (1) ​ Beds/ Units ​ Rate ​ Maturity ​ of Mortgage Loans ​ Investments ​ Service (2) Florida ​ — ​ 3 ​ — ​ 204 ​ 7.8%-8.8% ​ 21 ​ $ 30,456 ​ $ 20,706 ​ $ 1,667 ​ Georgia ​ — ​ 1 ​ — ​ 203 ​ 7.5% ​ 9 ​ ​ 51,111 ​ ​ 51,111 ​ ​ 3,886 ​ Illinois ​ 1 ​ — ​ — ​ 150 ​ 8.8% ​ 53 ​ ​ 16,500 ​ ​ 16,500 ​ ​ 1,464 ​ Louisiana 1 — — 189 7.5% 9 ​ 29,346 ​ 29,346 ​ 2,232 ​ Michigan 22 — — 2,702 9.8%-10.8% ​ 244 ​ ​ 265,443 ​ ​ 258,468 ​ ​ 27,294 ​ Missouri ​ — ​ — ​ — ​ — ​ 7.5% ​ 3 ​ ​ 1,999 ​ ​ 1,999 ​ ​ 152 ​ North Carolina (3) ​ — ​ 17 ​ — ​ 740 ​ 7.25% ​ 24 ​ ​ 99,005 ​ ​ 99,005 ​ ​ 7,284 ​ South Carolina (3) ​ — ​ 1 ​ — ​ 45 ​ 7.25% ​ 23 ​ ​ 4,945 ​ ​ 4,945 ​ ​ 369 ​ TOTAL 24 22 — 4,233 ​ ​ ​ 140 ​ $ 498,805 ​ $ 482,080 ​ $ 44,348 ​ (1) Consists of fourteen mortgage loans in eight states with eight borrowers. ​ (2) Includes principal and interest payments. ​ (3) Represents a single mortgage loan secured by 13 ALFs.
The following table sets forth certain information regarding our mortgage loans as of December 31, 2024 ( dollars amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Original ​ ​ Current ​ ​ No. of ​ No. of ​ No. of ​ Interest ​ Months to ​ Face Amount ​ Gross ​ Annual Debt Location ​ SNFs (1) ​ ALFs (1) ​ Beds/ Units ​ Rate ​ Maturity ​ of Mortgage Loans ​ Investments ​ Service (2) Florida ​ — ​ 3 ​ 204 ​ 7.8%-8.8% ​ 9 ​ $ 20,706 ​ $ 20,706 ​ $ 1,667 ​ Illinois ​ 1 ​ — ​ 150 ​ 8.8% ​ 41 ​ ​ 16,500 ​ ​ 16,500 ​ ​ 1,464 ​ Michigan 21 1 2,661 8.8%-11.1% ​ 222 ​ ​ 278,197 ​ ​ 267,778 ​ ​ 28,955 ​ North Carolina ​ — ​ 1 ​ 45 ​ 7.25% ​ — ​ ​ 10,750 ​ ​ 10,750 ​ ​ 790 ​ TOTAL 22 5 3,060 ​ ​ ​ 191 ​ $ 326,153 ​ $ 315,734 ​ $ 32,876 ​ (1) Consists of nine mortgage loans in four states with six borrowers.
Removed
Carolina 2 2 ​ — ​ 387 ​ — ​ 24 ​ 41,604 ​ ​ Tennessee — 2 ​ — ​ 141 ​ — ​ 24 ​ 5,275 ​ ​ Texas 17 20 ​ — ​ 3,238 ​ — ​ 24 ​ 328,467 ​ ​ Virginia — 4 ​ — ​ 500 ​ — ​ 25 ​ 30,209 ​ ​ Wisconsin 7 1 ​ — ​ 690 ​ — ​ 74 ​ 114,838 ​ ​ TOTAL 83 50 ​ 1 ​ 11,306 ​ $ — ​ 51 ​ $ 1,379,332 ​ ​ (1) Weighted average remaining months in lease term as of December 31, 2023. ​ (2) Includes three parcels of land held-for-use. ​ (3) Subsequent to December 31, 2023, we transferred these communities, previously operated by Brookdale Senior Living Communities, Inc.
Added
Cybersecurity is overseen by the Board and the Audit Committee of the Board (the “Audit Committee”).
Removed
Subsequent to December 31, 2023, 17 of these ALFs with a total of 738 units were re-leased to Brookdale under a new six-year master lease with an initial annual rent of $9,325. The new master lease commenced in January 2024. The remaining five ALFs were transitioned to an operator new to LTC.
Added
Additionally, during 2024, we committed to fund a $26,120 mortgage loan for the construction of a 116-unit independent living, assisted living and memory care community in Illinois. The borrower contributed $12,300 of equity which will initially fund the construction. Once all of the borrower’s equity has been drawn, we will begin funding the commitment.
Removed
These ALFs are located in North Carolina with a total of 210 units. The new six-year master lease commenced in January 2024 at an initial annual rent of $3,300. ​ (3) Excludes two closed ALFs located in Colorado and Texas. 28 ​ Table of Contents Financing Receivables.
Added
The loan term is approximately six years at a current rate of 9.0% and an IRR of 9.5%. ​ (2) Includes principal and interest payments. ​ Item 3.
Removed
The mortgage loan was allocated by state for reporting purposes only. Item 3.
Added
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.
Removed
Reserved ​ ​ 31 ​ Table of Contents Item 7.
Added
In 2025, we are evaluating and anticipating entering into structures provided in 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.
Removed
Properties for discussion of bed/unit count. ​ (3) Includes three parcels of land held-for-use and one behavioral health care hospital. ​ (4) Includes one parcel of land in Missouri securing a first mortgage held for future development of a post-acute SNF and one parcel of land in North Carolina securing a first mortgage held for future development of a seniors housing community. ​ (5) Excludes $13,469 variable rental income from lessee reimbursement of our real estate taxes and $3,057 rental income from sold properties. ​ (6) Excludes $1,723 interest income from paid-off mezzanine loans and working capital notes.
Added
Under a typical RIDEA structure, we would have certain oversight approval rights and the right to review operational and financial reporting information, but our operators will ultimately control the day-to-day business of the property. Offering RIDEA structures will be a further aspect of our traditional strategy of investing through vehicles such as triple-net leases, mortgage loans, and structured finance.
Removed
As of December 31, 2023, we had $1.7 billion in carrying value of net investments, consisting of $1.0 billion or 56.7% invested in owned and leased properties, $196.0 million or 11.3% invested in properties we own accounted for as 34 ​ Table of Contents financing receivables, $477.3 million or 27.4% invested in mortgage loans secured by first mortgages, $60.5 million or 3.5% in notes receivable and $19.3 million or 1.1% in unconsolidated joint ventures.
Added
We believe that RIDEA structures will provide us with additional investment opportunities. We also have identified several opportunities to cooperatively convert existing triple-net leases into RIDEA structures. To develop and implement RIDEA structures, we may need to commit financial and operational resources.
Removed
Rental income, income from financing receivables and interest income from mortgage loans represented 64.6%, 7.7% and 24.2%, respectively, of Total revenues on the Consolidated Statements of Income for the year ended December 31, 2023.
Added
While we anticipate that adding RIDEA transactions will be positive for our business model, our ability to succeed in this new focus will be determined by numerous factors, including our ability to identify suitable investments and our relationship with operators of RIDEA structures.
Removed
In most instances, our lease structure, which pertains to owned properties and those properties we own accounted for as financing receivables, contains fixed annual rental escalations and/or annual rental escalations that are contingent upon changes in the Consumer Price Index. Certain leases have annual rental escalations that are contingent upon changes in the gross operating revenues of the property.
Removed
This revenue is not recognized until the appropriate contingencies have been resolved. For the year ended December 31, 2023, we recognized a $2.1 million straight-line rental adjustment reflecting higher cash rent received than recorded as rental income and $0.8 million in amortization and write-off of lease incentives.
Removed
For the remaining leases in place at December 31, 2023, assuming no modification or replacement of existing leases and no new leased investments are added to our portfolio, except for the potential subsequent lease extensions and the leases reported below under Update on Certain Operators , we currently expect that the non-cash straight-line rent portion of rental income will increase from negative $2.1 million in 2023 to negative $2.5 million for projected annual 2024.
Removed
The negative non-cash straight-line portion of rental income represents higher cash rent projected to be received than recorded as rental income. Our cash rental income is projected to increase from $130.2 million in 2023 to $131.7 million for projected annual 2024. At December 31, 2023, the straight-line rent receivable balance on the consolidated balance sheet was $19.6 million.
Removed
Many of our existing leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater or less than that currently being paid. Terminated Lease During 2023, Brookdale Senior Living Communities, Inc. (“Brookdale”) elected not to exercise its renewal option under a master lease that matured on December 31, 2023.
Removed
See Update on Certain Operators below for discussion regarding the Brookdale portfolio. Lease Renewals and Extensions (a) a master lease covering two skilled nursing centers that was scheduled to mature in 2023 was renewed at the contractual rate for another five years extending the maturity to November 2028.
Removed
The centers have a total of 216 beds and are located in Florida. (b) a master lease covering two skilled nursing centers that was scheduled to mature in 2023 was renewed for another two years extending the maturity to December 2025. The master lease was renewed at the contractual annual cash rent of $1.8 million increasing 2.5% per year.
Removed
As amended, this master lease provides the lessee with a purchase option available through December 31, 2024. The centers have a total of 141 beds and are located in Tennessee.
Removed
(c) a master lease covering three skilled nursing centers that was scheduled to mature in 2024 was renewed at the contractual rate for another five years extending the maturity to August 2029. The centers have a total of 613 beds and are located in Arizona.
Removed
Subsequent to December 31, 2023, a master lease covering 11 skilled nursing centers that was scheduled to mature in January 2024 was renewed for seven months extending the maturity to August 2024. The master lease was renewed at the current annualized rent of $8.0 million, or $4.7 million for seven months in 2024.
Removed
The centers have a total of 1,444 beds and are located in Texas. Transitioned Portfolios During 2023, we transitioned a portfolio of eight assisted living communities with 500 units in Illinois, Ohio 35 ​ Table of Contents and Michigan to Encore Senior Living (“Encore”).
Removed
We agreed to provide assistance in the second quarter of 2023 to the former operator of this portfolio and as part of transition, we received repayment of $1.2 million of deferred rent which represents $0.9 million of April and May 2023 deferred rent and $0.3 million of unrecorded deferred rent provided in 2022.
Removed
Cash rent under the new two-year lease with Encore is based on mutually agreed upon fair market rent. Subsequent to December 31, 2023, we transitioned two assisted living communities, which are located in Georgia and South Carolina with a total of 159 units, to an operator new to LTC.
Removed
The new two-year master lease commenced on January 1, 2024, and provides two one-year extension periods. Cash rent is zero for the first six months. Thereafter, cash rent is based on mutually agreed upon fair market rent. Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. See Item 8.
Removed
FINANCIAL STATEMENTS— Note 5. Real Estate Investments. Owned Properties for a table that includes information about purchase options included in our lease agreements. Update on Certain Operators Anthem Memory Care Anthem Memory Care (“Anthem”) operates 11 memory care communities under a master lease and was placed in default in 2017 resulting from Anthem’s partial payment of its minimum rent.
Removed
However, we did not enforce our rights and remedies pertaining to the event of default, under the stipulation that Anthem achieves sufficient performance and pays agreed upon rent. Anthem increased their rent payment every year between 2017 and 2021. During the second and third quarter of 2022, we agreed to a certain temporary rent reduction totaling $1.5 million.
Removed
During the fourth quarter of 2022, we received payment of Anthem’s $1.5 million temporary rent reduction and a return to Anthem’s previously agreed upon rent of $0.9 million per month. Anthem paid us the agreed upon annual cash rent of $10.8 million in 2022 and 2023.
Removed
During the fourth quarter of 2023, the Anthem master lease was amended to set 2024 rent at $10.8 million. During the first quarter of 2023, we transitioned a 60-unit memory care community located in Ohio to Anthem under a new two-year lease.
Removed
Under the new two-year lease, no rent was paid through May 2023 after which cash rent is based on mutually agreed upon fair market rent. We received $105,000 from Anthem under this lease and expect to receive $240,000 during 2024.
Removed
Brookdale Senior Living Communities, Inc As discussed above, Brookdale elected not to exercise its renewal option under a master lease that matured on December 31, 2023. The 35-property assisted living portfolio was apportioned as follows: ● We re-leased 17 communities with a total of 738 units to Brookdale under a new master lease.
Removed
This new master lease includes six properties in Colorado, six properties in Texas, four in Kansas and one in Ohio. The new master lease, which commenced in January 2024, is for six years at an initial annual rent of $9.3 million, escalating by approximately 2% annually. The lease includes a purchase option that can be exercised in 2029.
Removed
We also agreed to fund $7.2 million for capital expenditures for the first two and a half years of the lease at an initial rate of 8.0%, escalating by approximately 2.0% annually thereafter; ​ ● Five communities in Oklahoma, with a total of 184 units, were transferred and are now being operated by an existing LTC operator.
Removed
The new master lease, which commenced in November 2023, is for three years, with one four-year extension, at an initial annual rent of $960,000, increasing to $984,000 in the second year, and $1.2 million in the third year.
Removed
Additionally, the new master lease includes a purchase option that can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option; ​ ● Five communities in North Carolina, with a total of 210 units, were transferred and are now being operated by an operator new to us.
Removed
The new master lease, which commenced in January 2024, is for six years at an initial annual rent of $3.3 million, escalating 3.0% annually thereafter; and ​ ● Eight communities across three states including four in Florida, three in South Carolina and one in Oklahoma with a total of 341 units, were sold for $28.0 million.
Removed
We received proceeds of $23.2 million, net of transaction costs and seller financing. We provided seller financing collateralized by two of the Florida properties, with a 36 ​ Table of Contents total of 92 units. The $4.0 million seller-financed mortgage loan is two years, with a one-year extension, at an interest rate of 8.75%.
Removed
Prestige Healthcare Prestige Healthcare (“Prestige”) operates 22 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 16.6% of our total revenues and 14.3% of our total assets as of December 31, 2023.
Removed
During the second quarter of 2023, we agreed to defer up to $1.5 million, or up to $0.3 million per month for May through September 2023, in interest payments due on one of Prestige’s mortgage loans secured by 15 skilled nursing centers in Michigan.
Removed
We deferred $0.6 million and $0.9 million in interest payments during the second and third quarter of 2023, respectively. During the fourth quarter of 2023, we amended the mortgage loan with Prestige which was subject to the previously agreed upon interest deferral.
Removed
Effective January 1, 2024, the minimum mortgage interest payment due to us is based on an annual current pay rate of 8.5% on the outstanding loan balance of $183.3 million. The current contractual interest rate on the loan of 10.8% remains unchanged.
Removed
The amendment also provides us the right to draw on Prestige’s security to pay the difference between the contractual rate and current pay rate. We received all 2023 contractual interest of $19.5 million due from Prestige after applying $3.4 million of its security.
Removed
Full contractual interest has been paid on the loan through February 2024 and we expect to receive full contractual cash interest through 2025. Subsequent to December 31, 2023, Prestige increased the security from its receipt of retro-active Medicaid funds. Accordingly, we currently hold security of $4.0 million.
Removed
Additional retro-active Medicaid payments received by Prestige in 2024 will be remitted to us as security. Other Operators During the year ended December 31, 2023, we provided $2.6 million of abated rent to the same operator for which we have been providing assistance.
Removed
During 2023, we received $0.3 million of rental income and expect to receive the same $0.3 million in 2024. During the third quarter of 2022, a portfolio of 12 assisted living communities was temporarily transitioned to an existing operator under a two-year master lease.
Removed
The temporary transition allowed us to find a more permanent solution for the portfolio as follows: ● Two of the properties located in Mississippi and Florida were sold during 2023; ● One community located in Texas is being negotiated for transition to another operator new to LTC; ● Five communities located in Texas are expected to be sold for $1.6 million under an agreement signed subsequent to December 31, 2023; ● Two communities located in Texas are being considered for sale for alternative uses.
Removed
One of these properties is closed and the other is expected to be closed; and ● Two of the communities located in Georgia and South Carolina were transitioned to an operator new to us subsequent to December 31, 2023. The lease term is two years with two one-year extension options.
Removed
The initial rent for the first six months is zero, after which rent will be based on mutually agreed upon fair market rent. The master lease includes a purchase option than can be exercised in 2027 if the two one-year extensions are exercised.
Removed
In conjunction with the ongoing negotiations related to this portfolio, during the fourth quarter of 2023, we wrote-off a $3.6 million note receivable related to this master lease. Further, we recorded an impairment loss of $3.3 million to reduce the carrying value of seven of the Texas communities which were being negotiated for sale.
Removed
As of December 31, 2023, these communities did not meet the criteria to be classified as held-for-sale. ​ ​ 37 ​ Table of Contents 2023 Transactions Overview The following tables summarizes our transactions in 2023 (dollar amounts in thousand): Investment in Owned Properties During 2023, we entered into a $54.1 million joint venture (“JV”) and contributed $45.0 million into the JV that purchased an independent living, assisted living and memory care campus in Ohio.
Removed
Under the JV agreement, the seller, our JV partner, has the option to purchase the campus between the third and fourth lease years for LTC’s allocation of the JV investment plus an IRR of 9.75%. The campus was leased to Encore under a 10-year term with an initial yield of 8.25% on LTC’s allocation of the JV investment.
Removed
We committed to fund $2.1 million of lease incentives under the Encore lease of which $1.5 million was funded during 2023.

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Item 2. Properties

Properties — owned and leased real estate

4 edited+148 added−145 removed0 unchanged
Biggest changeThe JV provided the seller-lessee with a purchase option to buy up to 50% of the properties at the beginning of the third lease year and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit Internal Rate of Return (“IRR”) of 9.0%.
Biggest changeThe properties were recorded at fair value, and the fair value of the properties was determined using the income approach. The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0%.
Our leases that contain fixed annual rental escalations and/or have annual rental escalations that are contingent upon changes in the Consumer Price Index or the Medicare Market Basket Rate, are generally recognized on a straight-line basis over the minimum lease period. Certain leases have annual rental escalations that are contingent upon changes in the gross operating revenues of the property.
In most instances, our lease structure, which pertains to owned properties and those properties we own accounted for as financing receivables, contains fixed annual rental escalations and/or annual rental escalations that are contingent upon changes in the Consumer Price Index. Certain leases have annual rental escalations that are contingent upon changes in the gross operating revenues of the property.
Upon origination we recorded $1.2 million Provision for credit losses equal to 1% of the financing receivable balance related to this investment. ​ (2) The JV leased the centers back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option, exercisable at the beginning of the fourth year through the end of the fifth year. 7 ​ Table of Contents Mortgage Loans.
The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0%.
We determined that each of these sale and leaseback transactions meet the accounting criteria to be presented as Financing receivables on our Consolidated Balance Sheets and recorded the rental revenue from these properties as Interest income from financing receivables on our Consolidated Statements of Income . See Note 2.
All of our investments with ALG are now cross-defaulted and cross-collateralized, providing us with added security. We determined that these joint venture transactions meet the criteria to be presented as financing receivables and that we exercise power over and receive benefits from each of these joint ventures, thus consolidated them as Financing Receivables on our Consolidated Balance Sheets .
Removed
Item 2. Properties for discussion of bed/unit count. ​ (3) Includes three parcels of land held-for-use and one behavioral health care hospital. Owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 2 to 15 years. Many of the leases contain renewal options.
Added
Properties for discussion of bed/unit count. ​ (3) Includes three parcels of land held-for-use and one behavioral health care hospital. ​ (4) Excludes $12,951 variable rental income from lessee reimbursement of our real estate taxes, $3,508 rental income from properties sold and the straight-line rent receivable write-off of $321 related to converting a lease to fair market rent. ​ (5) Exclude interest income from mortgage and notes receivable loans of $8,655 and $2, respectively, that have been paid off.
Removed
Each lease is a triple net lease which requires the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities. Many of the leases contain renewal options and provide for fixed minimum base rent during the initial and renewal periods.
Added
As of December 31, 2024, we had $1.7 billion in carrying value of net investments, consisting of $925.8 million or 55.3% invested in owned and leased properties, $357.9 million or 21.4% invested in properties we own accounted for as financing receivables, $312.6 million or 18.7% invested in mortgage loans secured by first mortgages, $47.2 million or 2.8% in notes receivable and $30.6 million or 1.8% in unconsolidated joint ventures. 33 ​ Table of Contents Rental income, income from financing receivables and interest income from mortgage loans represented 63.0%, 10.3% and 21.5%, respectively, of Total revenues on the Consolidated Statements of Income for the year ended December 31, 2024.
Removed
The majority of our leases contain provisions for specified annual increases over the rents of the prior year and that increase is generally computed in one of four ways depending on specific provisions of each lease: (i) a specified percentage increase over the prior year’s rent, generally between 2.0% and 3.0%; (ii) a calculation based on the Consumer Price Index or Medicare Market Basket Rate; (iii) as a percentage of facility revenues in excess of base amounts; or (iv) specific dollar increases.
Added
This revenue is not recognized until the appropriate contingencies have been resolved. For the year ended December 31, 2024, we recognized $2.3 million straight-line rental income and $0.8 million in amortization and write-off of lease incentives.
Removed
This revenue is not recognized until the appropriate contingencies have been resolved. Generally, our leases provide for one or more of the following: security deposits, property tax impounds, repair and maintenance, escrows and credit enhancements such as corporate or personal guarantees or letters of credit.
Added
For the remaining leases in place at December 31, 2024, assuming no modification or replacement of existing leases and no new leased investments are added to our portfolio, except for the potential subsequent lease extensions and the leases reported below under Update on Certain Operators , we currently expect that the non-cash straight-line rent portion of rental income will decrease from $2.3 million in 2024, which includes $3.2 million of one-time additional straight-line rental income related to restoring accrual basis accounting for two master leases, to a negative $2.9 million for projected annual 2025 representing an adjustment from higher cash rental income to lower GAAP rental income.
Removed
In addition, our leases are typically structured as master leases and multiple master leases with one operator, and are generally cross defaulted. 6 ​ Table of Contents The following table summarizes the concentration of our top ten operators of owned properties for 2023 and percentage of rental revenue, excluding rental income from properties sold, variable rental income due to lessee reimbursement of our real estate taxes, and adjustment for collectability of rental income for those operators for 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ Rental Revenue Lessee ​ Property Type 2023 2022 Brookdale Senior Living Communities, Inc. ​ ALF/MC ​ 11.9 % 13.5 % Carespring Healthcare Management, LLC ​ SNF ​ 10.1 % 10.2 % Anthem Memory Care, LLC ​ MC ​ 9.8 % 9.8 % HMG Healthcare, LLC ​ SNF ​ 9.1 % 7.2 % Genesis Healthcare, Inc. ​ ALF/SNF ​ 8.1 % 7.9 % Ark Post Acute Network ​ ILF/ALF/SNF ​ 7.5 % 7.5 % Ignite Medical Resorts ​ SNF ​ 7.0 % 4.9 % Fundamental Long Term Care Company ​ SNF/OTH ​ 6.3 % 7.7 % Juniper Communities, LLC ​ ALF/MC ​ 6.1 % 5.9 % Encore Senior Living ​ ALF ​ 5.0 % 3.0 % Financing Receivables.
Added
Our cash rental income is projected to decrease from $131.1 million in 2024 to $130.7 million for projected annual 2025 due to properties sold. In place cash rents are expected to increase by 3.2%. At December 31, 2024, the straight-line rent receivable balance on the consolidated balance sheet was $21.5 million.
Removed
During 2023 and 2022, we entered into two joint ventures (“JV”) and contributed into the JVs for the purchase of properties through sale and leaseback transactions. Concurrently, each of these JVs leased the purchased properties back to an affiliate of the seller and provided the seller-lessee with purchase options.
Added
Many of our existing leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater or less than that currently being paid.
Removed
Summary of Significant Accounting Policies within our consolidated financial statements for more information.
Added
During 2024, an operator notified us of its election not to exercise the renewal option on a master lease covering seven skilled nursing centers in California (1), Florida (2), and Virgina (4). The master lease matures in January 2026 and provides two 5-year renewal options.
Removed
The following tables provide information regarding our investments in financing receivables during the years ended December 31, 2023 and 2022 ( dollar amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ Number ​ ​ ​ ​ ​ ​ Investment ​ ​ ​ of ​ of ​ of ​ ​ Gross ​ ​ LTC Year ​ State ​ Properties ​ Properties ​ Beds/Units ​ ​ Investments ​ ​ Contributions 2023 ​ NC ​ ALF/MC ​ 11 ​ 523 ​ $ 121,321 ​ $ 117,490 2022 ​ FL ​ SNF ​ 3 ​ 299 ​ ​ 76,691 ​ ​ 61,661 ​ ​ ​ ​ ​ ​ 14 ​ 822 ​ $ 198,012 ​ $ 179,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Initial ​ Interest Income from Financing Receivables Lease ​ ​ of ​ Contractual ​ During Maturity ​ ​ Properties ​ Cash Yield ​ ​ 2023 ​ ​ 2022 2033 (1) ​ ​ ALF/MC ​ 7.25 % ​ $ 9,625 ​ $ — 2032 (2) ​ ​ SNF ​ 7.25 % ​ ​ 5,618 ​ ​ 1,762 ​ ​ ​ ​ ​ ​ ​ ​ $ 15,243 ​ $ 1,762 ​ (1) The JV leased these communities back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options.
Added
The operator is obligated to pay rent on the portfolio through maturity and is current on rent obligations through February 2025. Subsequent to December 31, 2024, we engaged a broker to sell or re-lease some or all of the properties in the portfolio.
Removed
The contractual initial cash yield of 7.25% increases to 7.5% in year three then escalates thereafter based on CPI subject to a floor of 2.0% and a ceiling of 4.0%.
Added
Lease Renewals and Extensions during 2024: (a) A master lease covering 11 skilled nursing centers located in Texas with a total of 1,444 beds was amended to extend the lease term to December 31, 2028, with two five-year renewal options. The annual rent increased from $8.0 million to $9.0 million for 2024.
Removed
As part of our strategy of making investments in properties used in the provision of long-term health care services, we provide mortgage financing on such properties based on our established investment underwriting criteria. We have also provided construction loans that by their terms convert into purchase/lease transactions or permanent financing mortgage loans upon completion of construction.
Added
Rent will increase to $9.5 million in 2025, and $10.0 million in 2026, escalating 3.1% annually thereafter. As a condition of the amended master lease, the operator paid $12.1 million during 2024, towards its $13.5 million working capital note. The remaining $1.4 million balance of the working capital note is interest-free and will be repaid in installments through 2028.
Removed
The following table summarizes our investments in mortgage loans secured by first mortgages at December 31, 2023 (dollar amounts in thousands) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Percentage ​ Number of ​ Investment ​ ​ ​ ​ ​ ​ Gross ​ of ​ of ​ ​ ​ ​ ​ SNF ​ ALF ​ per Interest Rate ​ Maturity ​ State ​ Investment ​ Property ​ Investment ​ Loans (1) ​ Properties (2) ​ Beds ​ Units ​ Bed/Unit 7.5% ​ 2024 ​ MO ​ $ 1,999 ​ OTH ​ 0.4 % 1 ​ — (3) ​ — ​ — ​ $ n/a 7.5% ​ 2024 ​ LA ​ ​ 29,346 ​ SNF ​ 6.1 % 1 ​ 1 ​ 189 ​ — ​ $ 155.27 7.5% ​ 2024 ​ GA ​ ​ 51,111 ​ ALF ​ 10.6 % 1 ​ 1 ​ — ​ 203 ​ $ 251.78 8.8% ​ 2025 ​ FL ​ ​ 4,000 ​ ALF ​ 0.8 % 1 ​ 2 ​ — ​ 92 ​ $ 43.48 7.8% ​ 2025 ​ FL ​ ​ 16,706 ​ ALF ​ 3.4 % 1 ​ 1 ​ — ​ 112 ​ $ 149.16 7.3% ​ 2025 ​ NC ​ ​ 10,750 ​ ALF ​ 2.2 % 1 ​ 1 ​ — ​ 45 ​ $ 238.89 7.3% (4) ​ 2025 ​ NC/SC ​ ​ 58,331 ​ ALF ​ 12.1 % 1 ​ 13 ​ — ​ 523 ​ $ 111.53 7.3% (4) ​ 2026 ​ NC ​ ​ 34,043 ​ ALF ​ 7.1 % 1 ​ 4 ​ — ​ 217 ​ $ 156.88 7.3% (4) ​ 2026 ​ NC ​ ​ 826 ​ OTH ​ 0.2 % 1 ​ — (5) ​ — ​ — ​ $ — 8.8% ​ 2028 ​ IL ​ ​ 16,500 ​ SNF ​ 3.4 % 1 ​ 1 ​ 150 ​ — ​ $ 110.00 10.8% (6) ​ 2043 ​ MI ​ ​ 183,968 ​ SNF ​ 38.2 % 1 ​ 15 ​ 1,875 ​ — ​ $ 98.12 9.8% (6) ​ 2045 ​ MI ​ ​ 39,950 ​ SNF ​ 8.3 % 1 ​ 4 ​ 480 — ​ $ 83.23 10.1% (6) ​ 2045 ​ MI ​ 19,700 ​ SNF ​ 4.1 % 1 ​ 2 ​ 201 — ​ $ 98.01 10.3% (6) ​ 2045 ​ MI ​ ​ 14,850 ​ SNF ​ 3.1 % 1 ​ 1 ​ 146 ​ — ​ $ 101.71 Total ​ ​ ​ ​ ​ $ 482,080 ​ ​ ​ 100.0 % 14 ​ 46 ​ 3,041 1,192 ​ $ 113.89 ​ (1) Some loans contain certain guarantees and/or provide for certain facility fees. ​ (2) Our mortgage loans are secured by properties located in eight states with eight borrowers. ​ (3) Represents a mortgage loan secured by a parcel of land for the future development of a 91-bed post-acute SNF. ​ (4) Represents the initial rate.
Added
(b) Another operator exercised its renewal option under its master lease for five years, from March 2025 through February 2030. Annual cash rent for 2024 was $8.0 million escalating 2.5% annually.
Removed
This loan has an IRR of 8%. ​ (5) Represents a mortgage loan secured by a parcel of land in North Carolina held for future development of a seniors housing community. ​ (6) Mortgage loans provide for 2.25% annual increases in the interest rate after a certain time period. ​ In general, the mortgage loans may not be prepaid except in the event of the sale of the collateral property to a third-party that is not affiliated with the borrower, although partial prepayments (including any prepayment premium) are often permitted where a mortgage loan is secured by more than one property upon a sale of one or more, but not all, of the collateral properties to a third-party which is not an affiliate of the borrower.
Added
The master lease covers 666 beds across four skilled nursing centers, three in Texas and one in Wisconsin, and a behavioral health care hospital in Nevada. 34 ​ Table of Contents Update on Certain Operators ALG Senior Living During the third quarter of 2022, a portfolio of 12 assisted living communities was temporarily transitioned to ALG Senior Living (“ALG”) under a two-year master lease.
Removed
The terms of the mortgage loans generally impose a premium upon prepayment of the loans depending upon the period in which the prepayment occurs, whether such prepayment was permitted or required, and certain other conditions such as upon the sale of the property under a pre-existing purchase option, destruction or condemnation, or other circumstances as approved by us.
Added
The temporary transition allowed us to find a more permanent solution for the portfolio as follows (dollar amounts in thousands) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ ​ Number ​ ​ ​ ​ ​ ​ ​ Lease ​ ​ ​ of ​ of ​ ​ of ​ ​ Lease ​ ​ ​ ​ Commencement ​ State ​ Property ​ Properties ​ ​ Beds/Units ​ ​ Term ​ ​ ​ ​ January 2024 ​ GA, SC ​ ALF ​ 2 ​ ​ 159 ​ ​ Two years ​ ​ ​ ​ April 2024 ​ TX ​ ALF ​ 1 ​ ​ 56 ​ ​ Two years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3 ​ ​ 215 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ ​ of ​ ​ Sales ​ ​ Net ​ Year sold ​ State ​ Property ​ Properties ​ ​ Beds/Units ​ ​ Price ​ ​ Proceeds ​ 2023 ​ FL ​ ALF ​ 1 ​ ​ 70 ​ $ 4,850 ​ $ 4,147 ​ 2023 ​ MS ​ ALF ​ 1 ​ ​ 67 ​ ​ 1,650 ​ ​ 1,419 ​ 2024 ​ TX ​ ALF ​ 5 ​ ​ 208 ​ ​ 1,600 ​ ​ 892 ​ 2024 ​ TX ​ ALF ​ 2 ​ ​ — ​ ​ 500 ​ ​ 389 ​ ​ ​ ​ ​ ​ ​ 9 ​ ​ 345 ​ $ 8,600 ​ $ 6,847 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ 12 ​ ​ 560 ​ ​ ​ ​ ​ ​ ​ ​ During the second quarter of 2024, we funded an additional $5.5 million under a mortgage loan receivable due from an ALG affiliate secured by 13 independent living, assisted living and memory care communities located in North Carolina (12) and South Carolina (1).
Removed
The prepayment premium is based on a yield maintenance formula. In addition to a lien on the mortgaged property, the loans are generally secured by certain non-real estate assets of the properties and contain certain other security provisions in the form of letters of credit and/or security deposits. 8 ​ Table of Contents Notes Receivable.
Added
We then entered into a newly formed $122.5 million joint venture with ALG, whereby we exchanged our $64.5 million mortgage loan receivable for a 53% controlling interest in the JV. Concurrently, ALG contributed these properties to the joint venture for a 47% non-controlling interest.
Removed
Our investment in notes receivable consists of mezzanine loans and other loan arrangements.
Added
The properties were recorded at fair value, and the fair value of certain properties was determined using the income approach. The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0%.
Removed
The following table summarizes our investments in notes receivable at December 31, 2023 ( dollar amounts in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ Type of ​ Gross ​ ​ ​ ​ Type of ​ Rate ​ IRR ​ ​ Maturity ​ Loan ​ Investment ​ ​ # of loans ​ Property ​ 4.0% ​ — ​ ​ 2024 ​ Working capital ​ $ 13,531 ​ ​ 1 ​ SNF 5.0% ​ — ​ ​ 2025 ​ Working capital ​ ​ 732 ​ ​ 1 ​ ALF ​ 7.5% ​ — ​ ​ 2027 ​ Working capital ​ ​ 550 ​ ​ 1 ​ ALF ​ 8.0% ​ 11.0 % ​ 2027 ​ Mezzanine ​ ​ 25,000 ​ ​ 1 ​ ALF ​ 8.8% ​ 12.0 % ​ 2028 ​ Mezzanine ​ ​ 17,000 ​ ​ 1 ​ ALF ​ 6.5% ​ — ​ ​ 2030 ​ Working capital ​ ​ 138 ​ ​ 1 ​ SNF ​ 7.3% ​ — ​ ​ 2030 ​ Working capital ​ ​ 500 ​ ​ 1 ​ ALF ​ 7.3% ​ — ​ ​ 2030 ​ Working capital ​ ​ 957 ​ ​ 1 ​ ALF ​ 7.0% ​ — ​ ​ 2031 ​ Working capital ​ ​ 2,693 ​ ​ 1 ​ ALF ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 61,101 (1) ​ ​ 9 ​ ​ ​ (1) Excludes the impact of credit loss reserve.
Added
During the second quarter of 2024, we also funded an additional $2.8 million under a mortgage loan receivable due from an ALG affiliate secured by four assisted living communities located in North Carolina.
Removed
Unconsolidated Joint Ventures. From time to time, we provide funding to third-party operators for the acquisition, development and construction (“ADC”) of a property. If the ADC arrangement characteristics are more similar to a jointly-owned investment or partnership, we account for the ADC arrangement as an investment in an unconsolidated joint venture under the equity method of accounting.
Added
We then entered into another newly formed $41.0 million joint venture with ALG, whereby we exchanged $38.0 million of mortgage loan receivables for a 93% controlling interest in the JV. Concurrently, ALG contributed these properties and a parcel of land to the joint venture for a 7.0% non-controlling interest.
Removed
The following table summarizes our investment in unconsolidated joint ventures at December 31, 2023 (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Contractual ​ ​ ​ Type ​ Number ​ ​ ​ ​ ​ Preferred ​ Cash ​ ​ ​ of ​ of ​ Carrying ​ Type of Return ​ Portion ​ State ​ Investment ​ Beds/Units ​ Value ​ Property 12% ​ ​ 7% ​ ​ WA ​ Preferred Equity ​ 95 ​ $ 6,340 (1) ​ ALF/MC 14% ​ ​ 8% ​ ​ WA ​ Preferred Equity ​ 267 ​ ​ 13,000 (2) ​ ILF/ALF ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 362 ​ $ 19,340 ​ ​ (1) Represents a preferred equity interest in an entity that developed and owns a 95-unit ALF and MC in Washington.
Added
Additionally, we have a controlling interest in a separate consolidated JV with ALG. These communities are located in North Carolina and are accounted for as financing receivables. During the second quarter of 2024, we deferred a portion of consolidated JV income totaling $3.0 million for May through December 2024.
Removed
Our investment represents 15.5% of the total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the internal rate of return (“IRR”) is 8%. After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging between 12% to 14%, depending upon timing of redemption.
Added
We also agreed to reduce rent from a lease on an assisted living community in South Carolina operated by ALG to $0 for May through December 2024, with quarterly market-based rent resets thereafter. We wrote-off $321,000 of straight-line rent receivable related to this lease during the three months ended June 30, 2024.
Removed
We have the option to require the JV partner to purchase our preferred equity interest at any time between August 17, 2031 and December 31, 2036. ​ (2) Represents a preferred equity interest in an entity that developed and owns a 267-unit ILF and ALF in Washington. Our investment represents 11.0% of the estimated total investment.
Added
During the fourth quarter of 2024, the property was transitioned to an operator new to us under a two-year lease, with a one-year extension option. The initial rent for the first three 35 ​ Table of Contents months is zero, with quarterly market-based resets.
Removed
The preferred equity investment earns an initial cash rate of 8% with an IRR of 14%. The JV partner has the option to buy out our investment at any time after August 31, 2023 at the IRR rate.
Added
The new lease includes a purchase option that can be exercised between September and November of 2026. 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.
Removed
Also, we have the option to require the JV partner to purchase our preferred equity interest at any time between August 31, 2027 and, upon project completion and leasing the property, prior to the end of the first renewal term of the lease.
Added
Prestige is our largest operator based upon revenues and assets representing 15.6% of our total revenues and 14.6% of our total assets as of December 31, 2024. During the fourth quarter of 2023, we amended the mortgage loan with Prestige which was subject to the previously agreed upon interest deferral.
Removed
Investment Policies and Strategies Our investment policy is to invest primarily in seniors housing and health care properties. Over the past three years, we have underwritten investments in seniors housing communities and health care centers for a total of approximately $547.7 million.
Added
Effective January 1, 2024, the minimum mortgage interest payment due to us is based on an annual current pay rate of 8.5% on the outstanding loan balance. The contractual interest rate on the loan, at the time of the amendment of 10.8% remained unchanged.
Removed
Additionally, during the past three years, we have disposed of properties for a total sales price of $202.8 million. Prior to finalizing an investment, we conduct a comprehensive financial due diligence review and property site review to assess the property’s general physical condition.
Added
The amendment also provides us the right to draw on Prestige’s security to pay the difference between the contractual rate and current pay rate. During the year ended December 31, 2024, Prestige increased the security by $6.9 million from its receipt of retroactive Medicaid funds.
Removed
Historically our investments have consisted of: ● fee ownership of seniors housing and skilled nursing properties that are leased to operators; ● mortgage loans secured by seniors housing and skilled nursing properties; or 9 ​ Table of Contents ● participation in such investments indirectly through investments in mezzanine loans and real estate partnerships or other entities that themselves make direct investments in such loans or properties.
Added
We received full contractual interest through December 2024 from payments received from Prestige after applying $4.3 million of its security. We expect to receive full contractual cash interest through at least 2025.
Removed
In evaluating potential investments, we consider factors such as: ● type of property; ● location; ● competition within the local market and evaluation of the impact resulting from any potential new development projects in construction or anticipated to be approved by local authorities; ● construction quality, condition and design of the property; ● current and anticipated cash flow of the property and its adequacy to meet operational needs and lease obligations or debt service obligations; ● experience, reputation and solvency of the operating companies providing services; ● payor mix of private, managed care, Medicare and Medicaid patients; ● growth, tax and regulatory environments of the communities in which the properties are located; ● occupancy and demand for similar properties in the area surrounding the property; ● Medicaid reimbursement policies and plans of the state in which the property is located; ● third-party environmental reports, land surveys and market studies (if applicable); ● energy, water and waste efficiency management practices; and ● health, safety and wellness practices (air filtration systems, hazardous waste disposal, UV sanitation, etc).
Added
Other Operators During 2024, an operator notified us of its election not to exercise the renewal option on a master lease covering seven skilled nursing centers in California (1), Florida (2), and Virgina (4). The master lease matures in January 2026 and provides two 5-year renewal options.
Removed
We seek to diversify our portfolio by operator, by property type, and by geography. Our business development team boasts a seasoned roster with decades of collective experience and deep industry relationships. We strive to remain visible and relevant by supporting trade associations, attending and hosting industry conferences and events, speaking on panels and participating in media interviews.
Added
The operator is obligated to pay rent on the portfolio through maturity and is current on rent obligations through February 2025. Subsequent to December 31, 2024, we engaged a broker to sell or re-lease some or all of the properties in the portfolio.
Removed
We believe these efforts, coupled with relationships will continue to provide investment opportunities in 2024 and beyond. Our marketing and business development efforts focus on sourcing relationships with regionally based operators and intermediaries to execute on single property or small portfolio transactions that are not broadly marketed by third-party intermediaries.
Added
Furthermore, subsequent to December 31, 2024, a master lease covering two skilled nursing centers in Tennessee that was scheduled to mature in December 2025, was amended extending the maturity to December 31, 2026 and the master lease purchase option window which expired on December 31, 2024, was extended for another year to December 31, 2025. ​ ​ 36 ​ Table of Contents 2024 Transactions Overview The following tables summarize our transactions in 2024 (dollar amounts in thousand): Investment in Improvement Projects ​ ​ ​ ​ ​ ​ Amount Assisted Living Communities ​ $ 12,431 Skilled Nursing Centers ​ ​ 1,246 Total ​ $ 13,677 Properties Sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ of ​ ​ Sales ​ ​ Carrying ​ ​ Net ​ State ​ Properties ​ Properties ​ Beds/Units ​ ​ Price ​ ​ Value ​ ​ (Loss) Gain (2) ​ Colorado ​ ALF ​ 1 ​ — ​ $ 5,250 ​ $ 4,058 ​ $ 1,097 ​ Florida ​ ALF ​ 1 ​ 60 ​ ​ 4,500 ​ ​ 4,579 ​ ​ (289) ​ Texas ​ ALF ​ 5 ​ 208 ​ ​ 1,600 ​ ​ 1,282 ​ ​ (390) ​ Texas ​ ALF ​ 2 ​ — ​ ​ 500 ​ ​ 389 ​ ​ — ​ Texas ​ ALF ​ 1 ​ 80 ​ ​ 7,959 (3) ​ ​ 4,314 ​ ​ 3,635 ​ Wisconsin ​ ALF ​ 1 ​ 110 ​ ​ 20,193 (4) ​ ​ 16,195 ​ ​ 3,986 ​ n/a ​ n/a ​ — ​ — ​ ​ — ​ ​ — ​ ​ (60) (5) ​ ​ ​ ​ ​ 11 (1) ​ 458 ​ $ 40,002 ​ $ 30,817 ​ $ 7,979 ​ (1) Subsequent to December 31, 2024, we sold a 29-unit assisted living community in Oklahoma for $670.
Removed
We take this approach because competition for larger, fully marketed portfolios generally results in increased pricing that produces yields below our investment hurdles. This strategy allows us to invest in properties priced at yields that are accretive to our stockholders.
Added
Upon sale, the property was removed from a master lease covering five assisted living communities in Oklahoma and rent under the master lease was not reduced as a result of the sale.
Removed
It is our current policy, and we intend to continue this policy, that all borrowers of funds from us and lessees of any of our properties secure adequate comprehensive property and general and professional liability insurance that covers us as well as the borrower and/or lessee.
Added
At December 31, 2024, the community was classified as held-for-sale. ​ (2) Calculation of net gain (loss) includes cost of sales and write-off of straight-line rent receivable and lease incentives, when applicable. ​ (3) As part of the negotiated sale, we received an additional $441 representing rental income through lease maturity in January 2025. ​ (4) Represents the price to sell our portion of interest in a JV, net of the JV partner’s $2,305 contributions in the joint venture. ​ (5) We recognized additional loss due to additional incurred costs related to properties sold during 2023. ​ Investment in Financing Receivables ​ ​ ​ ​ ​ ​ ​ 2024 ​ Investment and funding under financing receivables ​ $ 163,557 (1) ​ Amortization of capital costs ​ ​ (87) ​ Provision for loan loss reserve ​ ​ (1,635) (1) ​ ​ ​ $ 161,835 ​ (1) During the second quarter of 2024, we entered into a newly formed $122,460 JV with ALG, whereby we exchanged our $64,450 mortgage loan receivable due from an ALG affiliate for a 53% controlling interest in the JV.
Removed
Although we actively monitor and seek to ensure compliance with our policies, we may be subject to loss for any number of reasons, such as, noncompliance on the part of our lessees/borrowers, losses that exceed covered limits or that are not covered, inability of lessees/borrowers to obtain insurance on commercially reasonable terms, bankruptcy of a carrier, or insufficient tail coverage.
Added
This mortgage loan was secured by 13 ALFs and MCs located in North Carolina (12) and South Carolina (1). Concurrently, ALG contributed these properties to the joint venture for a 47% non-controlling interest. The properties were recorded at fair value, and the fair value of certain properties was determined using the income approach.
Removed
For investments in which we own fee simple title to the property and lease it to a third-party tenant, we are a non-possessory landlord and are not responsible for what takes place on such property.
Added
During the second quarter of 2024, we also entered into another newly formed $41,000 JV with ALG, whereby we exchanged $37,985 mortgage loan receivables due from an ALG affiliate for a 93% controlling interest in the JV. This mortgage loan was secured by four ALFs located in North Carolina.
Removed
Nonetheless, claims including those pertaining to general and professional liability may be asserted against us which may result in costs and exposure for which insurance is not available. 10 ​ Table of Contents Competition In the health care industry, we compete for real property investments with health care providers, other health care related REITs, real estate partnerships, banks, private equity funds, venture capital funds and other investors.
Added
Concurrently, ALG contributed these properties and a parcel of land to the joint venture for a 7% non-controlling interest. The properties were recorded at fair value, and the fair value of the properties was determined using the income approach.
Removed
Many of our competitors are significantly larger and have greater financial resources and lower cost of capital than we have available to us.
Added
The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0%. ​ (2) We recorded an aggregate provision for credit losses of $1,635 equal to 1.0% of the combined balance of joint venture investments as explained above. ​ ​ 37 ​ Table of Contents ​ Investment in Mortgage Loans ​ ​ ​ ​ ​ ​ ​ Amount ​ Originations and funding under mortgage loans receivable ​ $ 21,833 (1) ​ Exchange of mortgage loans for controlling interests in joint ventures accounted for as financing receivables ​ ​ (102,435) (2) ​ Pay-offs received ​ ​ (85,204) (3) ​ Application of interest reserve ​ ​ 169 ​ Scheduled principal payments received ​ ​ (701) ​ Mortgage loan premium amortization ​ ​ (8) ​ Recovery of loan loss reserve ​ ​ 1,663 ​ Net decrease in mortgage loans receivable ​ $ (164,683) ​ (1) The following funding occurred during 2024: ​ (a) $12,753 under a $19,500 mortgage loan commitment for the construction of an 85-unit ALF and MC in Michigan.
Removed
Our ability to compete successfully for real property investments will be determined by numerous factors, including our ability to identify suitable acquisition targets, our ability to negotiate acceptable terms for any such acquisition and the availability and our cost of capital.
Added
The borrower contributed $12,100 of equity upon origination in July 2023, which was used to initially fund the construction. Our remaining commitment is $6,747.
Removed
The lessees and borrowers of our properties compete on a local, regional and, in some instances, national basis with other health care providers.
Added
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; ​ (b) $5,546 of additional funding under a mortgage loan receivable agreement with an ALG affiliate secured by 13 ALFs and MCs in North Carolina (12) and South Carolina (1).
Removed
The ability of the lessee or borrower to compete successfully for patients or residents at our properties depends upon several factors, including the levels of care and services provided by the lessees or borrowers, the reputation of the providers, physician referral patterns, physical appearances of the properties, family preferences, financial condition of the operator and other competitive systems of health care delivery within the community, population and demographics.
Added
During the three months ended June 30, 2024, we exchanged this $64,450 mortgage loan receivable for a controlling interest in a JV investment with an ALG affiliate. See Financing Receivables above for more information; ​ (c) $2,766 of additional funding under a mortgage loan receivable agreement with an ALG affiliate secured by four ALFs in North Carolina.
Removed
REIT Tax Status We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, or the Code.
Added
During the three months ended June 30, 2024, we exchanged this $37,985 mortgage loan receivable for a controlling interest in a JV investment with an ALG affiliate.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

19 edited+0 added−1 removed71 unchanged
Biggest changeInformation system threats, failures breaches, or incidents also could result in the loss or release of personally identifiable information. A privacy or cybersecurity failure or breach could cause a loss of business, regulatory enforcement, substantial legal liability, and reputational harm. Where the failure or breach affects an operator, this could jeopardize the operator’s ability to fulfill its obligations to us.
Biggest changeFurther, new technologies such as artificial intelligence may be more capable at evading safeguards. Information system threats, failures breaches, or incidents also could result in the loss or release of personally identifiable information. A privacy or cybersecurity failure or breach could cause a loss of business, regulatory enforcement, substantial legal liability, and reputational harm.
Construction and development projects involve risks such as the following: ● development of a project could be abandoned after expending significant resources resulting in the loss of deposits or failure to recover expenses already incurred; 20 ​ Table of Contents ● development and construction costs of a project could exceed original estimates due to increased interest rates and higher materials, transportation, labor, leasing, or other costs, which could make completion less profitable; ● financing for a project could be unavailable on favorable terms or at all; ● project delays could result in increases in construction costs and debt service expenses as a result of a variety of factors that are beyond our control, including natural disasters, labor conditions, material shortages, and regulatory hurdles; and ● occupancy rates and rents at a newly completed property could fail to meet expected levels and could be insufficient to make the property profitable.
Construction and development projects involve risks such as the following: ● development of a project could be abandoned after expending significant resources resulting in the loss of deposits or failure to recover expenses already incurred; 19 ​ Table of Contents ● development and construction costs of a project could exceed original estimates due to increased interest rates and higher materials, transportation, labor, leasing, or other costs, which could make completion less profitable; ● financing for a project could be unavailable on favorable terms or at all; ● project delays could result in increases in construction costs and debt service expenses as a result of a variety of factors that are beyond our control, including natural disasters, labor conditions, material shortages, and regulatory hurdles; and ● occupancy rates and rents at a newly completed property could fail to meet expected levels and could be insufficient to make the property profitable.
We and our operators also rely on numerous third-party providers for information technology services, and we and our operators face similar risks relating to these providers. We cannot be certain that their information system and cybersecurity protocols are sufficient to withstand a data breach or cybersecurity incident.
We and our operators rely on information technology and on numerous third-party providers for information technology services, and we and our operators face similar risks relating to these providers. We cannot be certain that their information system and cybersecurity protocols are sufficient to withstand a data breach or cybersecurity incident.
General Risk Factors We are dependent on key personnel. Our three executive officers and other senior officers have a significant role in our success. Our ability to retain our management group or to attract suitable replacements should any member of the management group leave is dependent on the competitive nature of the employment market.
General Risk Factors We are dependent on key personnel. Our four executive officers and other senior officers have a significant role in our success. Our ability to retain our management group or to attract suitable replacements should any member of the management group leave is dependent on the competitive nature of the employment market.
As information system and cybersecurity risks continue to evolve, we may be required to expend additional resources to continue to enhance our information system and cybersecurity measures and to investigate and remediate any information system and cybersecurity vulnerabilities. 25 ​ Table of Contents Data privacy security failures or breaches could expose us to regulatory and other liability.
As information system and cybersecurity risks continue to evolve, we may be required to expend additional resources to continue to enhance our information system and cybersecurity measures and to investigate and remediate any information system and cybersecurity vulnerabilities. 24 ​ Table of Contents Data privacy security failures or breaches could expose us to regulatory and other liability.
If market interest rates increase, so could our interest costs. This could make the financing of any acquisition 22 ​ Table of Contents more costly. Rising interest rates could limit our ability to refinance existing debt when it matures or cause us to pay higher interest rates upon refinancing.
If market interest rates increase, so could our interest costs. This could make the financing of any acquisition 21 ​ Table of Contents more costly. Rising interest rates could limit our ability to refinance existing debt when it matures or cause us to pay higher interest rates upon refinancing.
If we lose our REIT status, our net earnings available for investment or 21 ​ Table of Contents distribution to stockholders would be significantly reduced for each of the years involved. In addition, we would no longer be required to make distributions to stockholders.
If we lose our REIT status, our net earnings available for investment or 20 ​ Table of Contents distribution to stockholders would be significantly reduced for each of the years involved. In addition, we would no longer be required to make distributions to stockholders.
A downturn in the health care property sector also could adversely impact the ability of our operators to 24 ​ Table of Contents meet their obligations to us and maintain residents and occupancy rates.
A downturn in the health care property sector also could adversely impact the ability of our operators to 23 ​ Table of Contents meet their obligations to us and maintain residents and occupancy rates.
The terms of one or more classes or series of preferred stock could dilute the voting power or reduce the value of our common stock. ​ 23 ​ Table of Contents Provisions in our charter limit ownership of shares of our stock.
The terms of one or more classes or series of preferred stock could dilute the voting power or reduce the value of our common stock. ​ 22 ​ Table of Contents Provisions in our charter limit ownership of shares of our stock.
Risks Related to Our Status as a REIT Our failure to qualify as a REIT would have serious adverse consequences to our stockholders. We intend to operate so as to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or the Code.
Risks Related to Our Status as a REIT Our failure to qualify as a REIT would have serious adverse consequences to our stockholders. We intend to operate so as to qualify as a REIT under the Internal Revenue Code of 1986, as amended (“the Code”).
We also have the ability to access the capital markets through the issuance of $76.0 million of common stock under our equity distribution agreements and an indeterminate amount through the issuance of debt and/or equity securities under an automatic shelf registration statement.
We also have the ability to access the capital markets through the issuance of $390.3 million of common stock under our equity distribution agreements and an indeterminate amount through the issuance of debt and/or equity securities under an automatic shelf registration statement.
We operate with a policy of incurring debt when it is advisable in the opinion of our Board of Directors. As of December 31, 2023, our indebtedness represented approximately 39.5% of our gross assets.
We operate with a policy of incurring debt when it is advisable in the opinion of our Board of Directors. As of December 31, 2024, our indebtedness represented approximately 31.1% of our gross assets.
As of December 31, 2023, we had eight active joint ventures with a total LTC equity investment of $305.6 million.
As of December 31, 2024, we had eight active joint ventures with a total LTC equity investment of $378.6 million.
As a REIT, we are required to distribute at least 90% of our taxable income. Our growth therefore is generally through the investment of new capital in real estate assets. As of December 31, 2023, we had $20.3 million of cash on hand and $97.8 million available under our unsecured revolving line of credit.
As a REIT, we are required to distribute at least 90% of our taxable income. Our growth therefore is generally through the investment of new capital in real estate assets. As of December 31, 2024, we had $9.4 million of cash on hand and $280.7 million available under our unsecured revolving line of credit.
The United States capital markets could experience significant price volatility, dislocations, and liquidity disruptions, due to global economic impact and infectious disease outbreaks. This has caused market prices of many securities, including our common stock, to fluctuate substantially.
The United States capital markets could experience significant price volatility, dislocations, and liquidity disruptions, due to global trade disputes and tariffs, international geopolitical events, and infectious disease outbreaks. This could cause market prices of many securities, including our common stock, to fluctuate substantially.
Further, the adoption of new privacy and cybersecurity laws at the federal and state level could require us and our operators to incur significant compliance costs. Item 1B. UNRESOLVED STAFF COMMENT S None.
Where the failure or breach affects an operator, this could jeopardize the operator’s ability to fulfill its obligations to us. Further, the adoption of new privacy and cybersecurity laws at the federal and state level could require us and our operators to incur significant compliance costs. Item 1B. UNRESOLVED STAFF COMMENT S None.
Further, an information system or cybersecurity threat, failure, data breach, or incident on an operator could impact their operations and ability to perform under the terms of their lease with us.
The rapid evolution and increasing prevalence of artificial intelligence technologies may also increase our and our operators’ risks of information system failures, data breaches, or cybersecurity incidents. Further, an information system or cybersecurity threat, failure, data breach, or incident on an operator could impact their operations and ability to perform under the terms of their lease with us.
However, information systems are vulnerable to threats, failures, breaches, or incidents due to improper functioning and unauthorized access from physical or electronic break-ins, computer viruses, and similar disruptions, including by hackers, foreign governments, and cyber terrorists . This risk has increased since the outbreak of the COVID-19 pandemic as we and our operators have increased reliance on information technology.
However, information systems are vulnerable to threats, failures, breaches, or incidents due to improper functioning and unauthorized access from physical or electronic break-ins, computer viruses, and similar disruptions, including by hackers, foreign governments, and cyber terrorists .
If an operator is unable to comply with the terms of its leases, we could be asked to defer rent or be forced to modify the leases in ways that are unfavorable to us.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Overview—Portfolio Overview—Update on Certain Operators for further discussion. If an operator is unable to comply with the terms of its leases, we could be asked to defer rent or be forced to modify the leases in ways that are unfavorable to us.
Removed
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Overview—Portfolio Overview—Update on Certain Operators for further discussion. Additionally, the COVID-19 pandemic could continue to cause, financial and legal difficulties for certain of our lessees.

Other LTC 10-K year-over-year comparisons