LTC Announces Operating Results for the Three and Twelve Months Ended December 31, 2007

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--

LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and twelve months ended December 31, 2007 and announced that net income available to common stockholders for the fourth quarter was $6.9 million or $0.30 per diluted share. For the same period in 2006, net income available to common stockholders was $7.7 million or $0.33 per diluted share. Revenues for the three months ended December 31, 2007, were $18.0 million versus $18.4 million for the same period last year.

The Company also announced that for the twelve months ended December 31, 2007, net income available to common stockholders was $30.8 million or $1.32 per diluted share. For the same period in 2006, net income available to common stockholders was $61.6 million or $2.51 per diluted share, which included a gain of $32.6 million from the sale of four assisted living properties and a skilled nursing property and discontinued operations related to properties sold of $0.7 million. Net income from continuing operations was $47.7 million or $1.32 per diluted share for the twelve months ended December 31, 2007 as compared to $45.5 million or $1.21 per diluted share during the same period last year. Revenues for the twelve months ended December 31, 2007, were $74.8 million versus $73.2 million for the same period last year.

The Company announced that during the fourth quarter of 2007 it originated two mortgage loans with the same borrower on two skilled nursing properties in Texas. One loan in the amount of $4.0 million is secured by a first trust deed on a property with 230 licensed beds of which 172 beds are Medicaid licensed. The other loan in the amount of $2.2 million is secured by a first trust deed on a property with 117 licensed beds of which 114 are Medicaid licensed. Both loans have an initial interest rate of 9.75%, increasing 0.15% annually, with a 20-year amortization and mature in 10 years. Additionally, in the fourth quarter of 2007 the Company invested $0.5 million, at an average yield of approximately 10%, under agreements to expand and renovate four properties operated by four different operators. As of December 31, 2007, the total commitment remaining under these agreements was $2.4 million. The Company also invested $1.4 million during the quarter ended December 31, 2007 to repurchase a total of 67,123 shares of LTC's common stock. These purchases were made on the open market at an average cost of $21.58 per share.

The Company has scheduled a conference call for Thursday, February 21, 2008, at 10:00 a.m. Pacific time, in order to comment on the Company's performance and operating results for the quarter ended December 31, 2007. The conference call is accessible by dialing 800-659-2037 passcode 32428620. The international number is 617-614-2713. The earnings release and any additional financial information that may be discussed on the conference call will also be available on our website. An audio replay of the conference call will be available from February 21, 2008 through March 6, 2008. Callers can access the replay by dialing 888-286-8010 or 617-801-6888 and entering conference ID number 91111597.

At December 31, 2007, LTC had investments in 108 skilled nursing properties, 94 assisted living properties and two schools in 29 states. The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through mortgage loans, facility lease transactions and other investments. For more information on LTC Properties, Inc., visit the Company's website at www.ltcproperties.com.

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

                         LTC PROPERTIES, INC.
                  CONSOLIDATED STATEMENTS OF INCOME
           (Amounts in thousands, except per share amounts)

                               Three Months Ended  Twelve Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                  2007      2006     2007      2006
                               ---------- -------- --------- ---------
Revenues:
  Rental income                 $ 14,551  $13,783  $ 57,841  $ 52,342
  Interest income from mortgage
   loans                           2,620    3,509    12,502    15,444
  Interest and other income          851    1,060     4,447     5,377
                               ---------- -------- --------- ---------
          Total revenues          18,022   18,352    74,790    73,163
                               ---------- -------- --------- ---------

Expenses:
  Interest expense                 1,240    1,594     4,957     7,028
  Depreciation and amortization    3,610    3,492    14,305    13,841
  Legal expenses                      21        6       260       236
  Operating and other expenses     1,909    1,731     7,229     6,696
                               ---------- -------- --------- ---------
          Total expenses           6,780    6,823    26,751    27,801
                               ---------- -------- --------- ---------
Income before non-operating
 income and minority interest     11,242   11,529    48,039    45,362
Non-operating income                  --      517        --       517
Minority interest                    (85)     (86)     (343)     (343)
                               ---------- -------- --------- ---------
Income from continuing
 operations                       11,157   11,960    47,696    45,536
Discontinued operations:
  (Loss) income from
   discontinued operations            (8)     (12)      (47)      695
  (Loss) gain on sale of
   assets, net                       (43)      --       106    32,557
                               ---------- -------- --------- ---------
Net (loss) income from
 discontinued operations             (51)     (12)       59    33,252
                               ---------- -------- --------- ---------
Net income                        11,106   11,948    47,755    78,788
Preferred stock dividends         (4,224)  (4,241)  (16,923)  (17,157)
                               ---------- -------- --------- ---------
Net income available to common
 stockholders                   $  6,882  $ 7,707  $ 30,832  $ 61,631
                               ========== ======== ========= =========

Net Income per Common Share
 from Continuing Operations net
 of Preferred Stock Dividends:
  Basic                         $   0.30  $  0.33  $   1.33  $   1.22
                               ========== ======== ========= =========
  Diluted                       $   0.30  $  0.33  $   1.32  $   1.21
                               ========== ======== ========= =========
Net Income per Common Share
 from Discontinued Operations:
  Basic                         $   0.00  $  0.00  $   0.00  $   1.42
                               ========== ======== ========= =========
  Diluted                       $   0.00  $  0.00  $   0.00  $   1.41
                               ========== ======== ========= =========
Net Income per Common Share
 Available to Common
 Stockholders:
  Basic                         $   0.30  $  0.33  $   1.33  $   2.64
                               ========== ======== ========= =========
  Diluted                       $   0.30  $  0.33  $   1.32  $   2.51
                               ========== ======== ========= =========

Basic weighted average shares
 outstanding                      22,754   23,515    23,215    23,366
                               ========== ======== ========= =========

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

Reconciliation of Funds From Operations ("FFO")

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

The following table reconciles net income available to common stockholders to funds from operations available to common stockholders (amounts in thousands, except per share amounts):

                                    Three Months      Twelve Months
                                        Ended              Ended
                                    December 31,       December 31,
                                  ----------------- ------------------
                                    2007     2006     2007     2006
                                  -------- -------- -------- ---------

Net income available to common
 stockholders                     $ 6,882  $ 7,707  $30,832  $ 61,631
Add: Real estate depreciation       3,618    3,504   14,352    13,944
Add: Non-cash compensation charges    631      248    2,242     1,002
Add: IRS settlement                    --       --       --       950
Less (gain)/add loss on sale of
 assets, net                           43       --     (106)  (32,557)
                                  -------- -------- -------- ---------
FFO available to common
 stockholders                     $11,174  $11,459  $47,320  $ 44,970
                                  ======== ======== ======== =========

Less: Non-cash compensation
 charges                             (631)    (248)  (2,242)   (1,002)
Less: IRS Settlement                   --       --       --      (950)
                                  -------- -------- -------- ---------
FFO including IRS settlement and
 non-cash compensation charges    $10,543  $11,211  $45,078  $ 43,018
                                  ======== ======== ======== =========

Basic FFO available to common
 stockholders per share           $  0.49  $  0.49  $  2.04  $   1.93
                                  ======== ======== ======== =========
Diluted FFO available to common
 stockholders per share           $  0.48  $  0.48  $  1.99  $   1.88
                                  ======== ======== ======== =========

Basic FFO including IRS settlement
 and non-cash compensation charges
 per share                        $  0.46  $  0.48  $  1.94  $   1.84
                                  ======== ======== ======== =========
Diluted FFO including non-cash
 compensation charges per share   $  0.46  $  0.47  $  1.90  $   1.80
                                  ======== ======== ======== =========
                         LTC PROPERTIES, INC.
                     CONSOLIDATED BALANCE SHEETS
           (Amounts in thousands, except per share amounts)

                                                 December   December
                                                  31, 2007   31, 2006
                                                 ---------- ----------
ASSETS
Real Estate Investments:
  Buildings and improvements, net of accumulated
   depreciation and
  amortization: 2007 -- $115,766; 2006 --
   $101,783                                      $ 342,222  $ 350,415
  Land                                              34,892     34,998
  Properties held for sale, net of accumulated
   depreciation and
  amortization: 2007 -- $0; 2006 -- $308                --        783
  Mortgage loans receivable, net of allowance for
   doubtful
  accounts: 2007 -- $890; 2006 -- $1,280            91,278    116,992
                                                 ---------- ----------
     Real estate investments, net                  468,392    503,188
Other Assets:
  Cash and cash equivalents                         42,631     29,887
  Debt issue costs, net                                326        548
  Interest receivable                                2,553      3,170
  Prepaid expenses and other assets                 20,447     16,771
  Notes receivable                                   3,292      4,264
  Marketable securities                              6,464      9,939
                                                 ---------- ----------
     Total Assets                                $ 544,105  $ 567,767
                                                 ========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings                                  $      --  $      --
Mortgage loans payable                              47,165     48,266
Bonds payable                                        5,130      5,545
Accrued interest                                       349        358
Accrued expenses and other liabilities               5,381      6,205
Liabilities related to properties held for sale         --         18
Distributions payable                                3,406      3,423
                                                 ---------- ----------
     Total Liabilities                              61,431     63,815

Minority interest                                    3,518      3,518
Stockholders' equity:
Preferred stock $0.01 par value; 15,000 shares
 authorized;
     shares issued and outstanding: 2007 --
      8,802; 2006 -- 8,834                         208,553    209,341
Common stock: $0.01 par value; 45,000 shares
 authorized;
shares issued and outstanding: 2007 -- 22,872;
 2006 -- 23,569                                        229        236
Capital in excess of par value                     316,609    332,149
Cumulative net income                              490,588    442,833
Other                                                  956      1,693
Cumulative distributions                          (537,779)  (485,818)
                                                 ---------- ----------
     Total Stockholders' Equity                    479,156    500,434
                                                 ---------- ----------
     Total Liabilities and Stockholders' Equity  $ 544,105  $ 567,767
                                                 ========== ==========

Source: LTC Properties, Inc.