Summary of components of our rental income


	Year Ended December 31,
Rental Income		2024			2023			2022
Contractual cash rental income	$	118,198	⁽¹⁾	$	116,702	⁽²⁾	$	115,230
Variable cash rental income		12,951	⁽³⁾		13,525	⁽³⁾		15,516	⁽³⁾
Straight-line rent		2,268	⁽⁴⁾		(2,078)	⁽⁵⁾		(1,369)
Adjustment of lease incentives and rental income		(321)	⁽⁶⁾		(26)	⁽⁶⁾		(256)	⁽⁶⁾
Amortization of lease incentives		(818)			(773)			(877)
Total	$	132,278		$	127,350		$	128,244

(1)	Increased primarily due to $2,377 repayment of rent credit in connection with the sale of our interest in a consolidated JV, rental income from 2023 acquisitions, annual rent escalations, partially offset by portfolio transitions and property sales.

(2)	Increased primarily due to rental income from acquisitions, annual rent escalations, repayment of deferred rent, and fair market rent resets, partially offset by property sales.

(3)	The variable cash rental income for the years ended December 31, 2024, 2023 and 2022 primarily includes reimbursement of real estate taxes by our lessees.

(4)	Increased primarily due to a one-time additional straight-line rental income related to restoring accrual basis accounting for two master leases.

(5)	Decreased primarily due to deferred rent repayment and normal amortization.

(6)	Represents straight-line rent receivable and lease incentives write-offs.

Schedule of impairment loss


		Type	Number	Number
		of	of	of	Impairment
Year	State	Properties	Properties	Beds/Units	Loss
2024	Ohio	ALF	1	39	$	780	⁽¹⁾
	Oklahoma	ALF	1	29		153	⁽²⁾
	Texas	ALF	1	56		6,020	⁽¹⁾
			3	124	$	6,953

2023	Florida	ALF	1	70	$	434	⁽³⁾
	Florida	ALF	1	60		7,522
	Mississippi	ALF	1	67		4,554	⁽⁴⁾
	Texas	ALF	7	248		3,265
			10	445	$	15,775

2022	Florida	ALF	1	70	$	1,222	⁽³⁾
	Kentucky	ALF	1	60		1,286	⁽⁵⁾
	Colorado	ALF	1	—		914	⁽⁶⁾
			3	130	$	3,422

(1)	In conjunction with the anticipated closure, we recorded an impairment loss on the carrying value of these properties.

(2)	Subsequent to December 31, 2024, this community was sold. See Properties Held-for-Sale below for more information regarding this community.

(3)

In conjunction with the ongoing negotiations to sell this community, we recorded a $434 impairment loss during the three months ended March 31, 2023, and a $1,222 impairment loss during the fourth quarter of 2022. This community was sold during the second quarter of 2023 for $4,850 and we recorded a net gain on sale of $64 as a result of this transaction.

(4)	This community was sold during the fourth quarter of 2023 for $1,650 and we recorded a net loss on sale of $219 as a result of this transaction.

(5)	This community was classified as held-for sale at December 31, 2022 and sold during the first quarter of 2023 for $11,000. We recorded a net gain on sale of $57 as a result of this transaction.

(6)	This community was closed during 2022.

Summary of acquisitions

Acquisitions. The following table summarizes our acquisitions for the years ended December 31, 2024 through 2022 (dollar amounts in thousands):


		Cash					Non-						Number	Number
		Paid at		Assumed			Controlling	Transaction			Assets		of	of
Year	Type of Property	Acquisition		Liabilities			Interest	Costs			Acquired		Properties	Beds/Units
2024	OTH ⁽¹⁾	$	300	$	—	$	—	$	19	$	319		—	—
2023	ALF ⁽²⁾	$	43,759	$	9,767	$	9,133	$	363	$	63,022	⁽³⁾	1	242
2022	SNF ⁽⁴⁾	$	51,817	$	—	$		$	—	$	51,817		4	339

(1)	We acquired a parcel of land in Kansas adjacent to an existing community operated by Brookdale Senior Living Communities (“Brookdale”). Rent was increased by 8.0% of our total cost of the investment.

(2)

We entered into a $54,134 JV and contributed $45,000 into the JV that purchased an ILF/ALF/MC in Ohio. 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 Senior Living (“Encore”) under a 10-year term with an initial yield of 8.25% on LTC’s allocation of the JV investment. LTC committed to fund $2,100 of lease incentives under the Encore lease.

(3)	Includes $8,309 tax abatement intangible included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets.

(4)

The properties are located in Texas and are leased to an affiliate of an existing operator under a 10-year lease with two 5-year renewal options. Additionally, the lease provides either an earn-out payment or purchase option but not both. If neither option is elected within the timeframe defined in the lease, both elections are terminated. The earn-out payment is available, contingent on achieving certain thresholds per the lease, beginning at the end of the second lease year through the end of the fifth lease year. The purchase option is available beginning in the sixth lease year through the end of the seventh lease year. The initial cash yield is 8% for the first year, increasing to 8.25% for the second year, then increases annually by 2.0% to 4.0% based on the change in the Medicare Market Basket Rate.

Schedule of future amortization expenses related to the intangible assets

The following table provides future amortization expenses related to the intangible assets at December 31, 2024 (in thousands):


	Total		2025		2026		2027		2028		2029		Thereafter
In-place leases ⁽¹⁾	$	4,289	$	872	$	696	$	633	$	519	$	493	$	1,076
Tax abatement intangible ⁽²⁾		7,212		692		692		692		692		692		3,752
	$	11,501	$	1,564	$	1,388	$	1,325	$	1,211	$	1,185	$	4,828

(1)	Recorded as depreciation expense included in the Depreciation and amortization line item on our Consolidated Statements of Income.

(2)	Recorded as Property tax expense on our Consolidated Statements of Income.

Schedule of property sold

The following table summarizes property sales during the years ended December 31, 2024, 2023 and 2022 (dollar amounts in thousands):


		Type	Number	Number
		of	of	of		Sales			Carrying		Net
Year	State	Properties	Properties	Beds/Units		Price			Value		(Loss) Gain ⁽²⁾
2024 ⁽¹⁾	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⁾
Total			11	458	$	40,002		$	30,817	$	7,979

2023	Florida	ALF	5	246	$	23,600		$	9,084	$	13,327
	Kentucky	ALF	1	60		11,000			10,720		57
	Mississippi	ALF	1	67		1,650			1,639		(220)
	New Jersey	ALF	1	39		2,000			1,552		266
	New Mexico	SNF	2	235		21,250			5,523		15,287
	Nebraska	ALF	3	117		2,984			2,934		—
	Oklahoma	ALF	1	37		800			777		11
	Pennsylvania	ALF	2	130		11,128			6,054		4,860
	South Carolina	ALF	3	128		8,409			4,446		3,708
Total			19	1,059	$	82,821		$	42,729	$	37,296

2022	California	ALF	2	232	$	43,715		$	17,832	$	25,867
	California	SNF	1	121		13,250			1,846		10,846
	Texas	SNF	1	—		485			697		(441)
	Virginia	ALF	1	74		16,895			15,549		1,344	⁽⁶⁾
	n/a	n/a	—	—		—			—		214	⁽⁷⁾
Total			5	427	$	74,345		$	35,924	$	37,830

(1)

Subsequent to December 31, 2024, we sold a 29-unit assisted living community in Oklahoma for $670. Upon sale, the property was removed from a master lease covering five ALFs in Oklahoma and rent under the master lease was not reduced as a result of the sale. 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.

(6)	In connection with this sale, the former operator paid us a lease termination fee of $1,181 which is not included in the gain on sale.

(7)	We recognized additional gain due to the reassessment adjustment of the holdbacks related to properties sold during 2020 and 2019, under the expected value model per ASC Topic 606, Contracts with Customers.

Summary of investments in mortgage loans secured by first mortgages

The following table summarizes our investments in mortgage loans secured by first mortgages at December 31, 2024 (dollar amounts in thousands):


						Type	Percentage		Number of				Investment
			Gross			of	of				SNF	ALF	per
Interest Rate	Maturity	State	Investment			Property	Investment		Loans ⁽²⁾	Properties ⁽³⁾	Beds	Units	Bed/Unit
8.8%	2025	FL	$	4,000		ALF	1.3	%	1	2	—	92	$	43.48
7.8%	2025	FL		16,706		ALF	5.3	%	1	1	—	112	$	149.16
7.3%	2025	NC		10,750		ALF	3.4	%	1	1	—	45	$	238.89
8.8%	2026	MI		12,753		ALF	4.1	%	1	1	—	85	$	150.04
8.8%	2028	IL		16,500		SNF	5.2	%	1	1	150	—	$	110.00
11.1% ⁽⁴⁾	2043	MI		180,700		SNF	57.2	%	1	14	1,749	—	$	103.32
10.0% ⁽⁴⁾	2045	MI		39,800		SNF	12.6	%	1	4	480	—	$	82.92
10.3% ⁽⁴⁾	2045	MI		19,700		SNF	6.2	%	1	2	201	—	$	98.01
10.5% ⁽⁴⁾	2045	MI		14,825		SNF	4.7	%	1	1	146	—	$	101.54
Total			$	315,734	⁽¹⁾		100.0	%	9	27	2,726	334	$	103.18

(1)	Excludes the impact of credit loss reserve.

(2)	Some loans contain certain guarantees and/or provide for certain facility fees.

(3)

Our mortgage loans are secured by properties located in four states with six borrowers. 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. The loan term is approximately six years at a current rate of 9.0% and an IRR of 9.5%.

(4)	Mortgage loans provide for 2.25% annual increases in the interest rate after a certain time period.

Scheduled principal payments on mortgage loan receivables

Scheduled principal payments on mortgage loan receivables are as follows (in thousands):


	Scheduled
	Principal
2025	$	32,136
2026		13,434
2027		680
2028		17,180
2029		680
Thereafter		251,624
Total	$	315,734