LTC PROPERTIES INC — Call Transcript 2026

Welcome to the LTC Properties, Inc. fourth quarter 2025 earnings conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It's now my pleasure to introduce Pam Kessler, Co-President and Co-CEO. Pam, please go ahead. Good morning, and thank you for joining us. Eight months after launching our SHOP initiative, we are almost halfway through our transformation from a lower growth triple net REIT into a faster growing, SHOP-focused REIT, a transformation that will lead to higher multi-year internal and external SHOP and earnings growth, to superior shareholder returns. This transformation has included substantial investment in people, systems, and technology, which will continue to be a focus to support our aggressive growth plans. We have made great progress growing our seniors housing portfolio through SHOP, reflecting successful execution across every aspect of the business. Today, we are guiding to $600 million in acquisitions at the midpoint for 2026, all of which we anticipate will be in SHOP. This acquisition guidance is nearly 70% higher than SHOP acquisitions in 2025. 2026 started off strong, with $108 million in SHOP acquisitions already completed and another $160 million on schedule to close in the second quarter, which takes us nearly halfway to our $600 million midpoint investment guidance for the year. Throughout our transformation, we have continued to maintain a strong balance sheet with well-laddered debt maturities and a FAD payout ratio below 80%. Since launching SHOP last May, we grew it to 25% of our investment portfolio by year-end. Based on our 2026 acquisition guidance, we expect to end this year with SHOP growing to 45% of our investment portfolio and 40% of our NOI, capitalizing on LTC's ability to accelerate our growth through acquisitions. By launching SHOP as a small cap REIT, we are leveraging the denominator effect to our advantage. LTC's smaller initial footprint provides the power to capture outsized growth, where even modest investments have a meaningful and visible impact. Additionally, after the prepayment of the $180 million Prestige loan expected later this year, loans should be reduced to less than 10% of our portfolio, and skilled nursing investments will represent less than 30% by the end of 2026. This strategic portfolio transformation reflects our SHOP launch and rapid growth within a targeted 18-month period. With our transformation complete at the end of 2026, we see the opportunity for continued accelerated internal and external growth powered by SHOP in 2027. Now I'll turn the call over to Gibson to discuss our portfolio and strong SHOP performance. Thank you, Pam. We've undertaken the transformation to increase the organic growth and new investment growth profile of our portfolio and maximize risk-adjusted returns for our shareholders. To that end, we have focused over the last year and a half to develop and enhance our platform to position LTC and our operators for success, and we'll continue to make further investments going forward to position LTC for profitable growth. In addition to adding accounting, FP&A, and data analytics resources, we recently welcomed two vice presidents to our asset management team, both with extensive experience in systems development and seniors housing asset management. Our SHOP portfolio results supported our 2025 strategy by outperforming expectations. The original 13 properties converted to SHOP grew NOI over 2024 pro forma NOI by 22% and produced $16.2 million of combined rent and NOI in 2025, compared to $12.3 million of rent in 2024. The remainder of the SHOP portfolio outperformed expectations in the fourth quarter by contributing $5.9 million of NOI, about $700,000 above the midpoint of guidance. Our 2026 SHOP NOI guidance includes 13 properties we originally converted and 14 properties acquired to date. Our guidance for these 27 properties assumes 14% NOI growth at the midpoint for full year 2026 over pro forma 2025. This subset of properties realized occupancy of 89.7% in 2025, which we are projecting will grow by about 150 basis points in 2026. We further project that RevPAR will grow by approximately 5% and that FFO will grow by 2.5%. We do want to note that the 2025 results for the 14 properties we have acquired include occupancy and performance as reported by the prior owners, adjusted for the current management fee structure. We will continue changing the mix of our portfolio in 2026. Prestige Healthcare has delivered notice of their intent to prepay on or about July 1st, the $180 million loan, which is currently yielding approximately 11%. Additionally, we expect to sell 5 skilled nursing properties and have certain loan payoffs totaling $90 million in the next 60 days. These transactions, together with our external growth through SHOP, will meaningfully reduce our skilled nursing and loan exposure. With that, I'll turn things over to Dave for an update on our growth strategy. Thank you, Gibson. In 2025, we put $360 million to work through SHOP acquisitions. By the end of the second quarter of this year, we will have added an additional $270 million, moving us rapidly towards our $600 million midpoint acquisition guidance and making 2026 our most active investment year yet, as we accelerate our growth towards an increasingly SHOP-weighted portfolio. LTC's relationship-focused culture is the foundation of our success. In 2025, we closed two follow-on transactions with existing operating partners. Our momentum is continuing in 2026, with another follow-on deal completed and two more in the $160 million we expect to close shortly. At the same time, we are in active conversations with operating partners new to LTC and are evaluating acquisitions to kick off those relationships. In a competitive senior housing acquisitions environment, our smaller asset base and personal relationship-driven strategy are competitive advantages. We find opportunities in both single and multi-property investments and do not need to chase overpriced, large on-market transaction. We are keenly focused on every deal and every LTC operator relationship, each of which directly contributes to our growth and furthers our transformation into a SHOP growth engine. Existing and prospective operators desiring to grow their portfolios or retain assets when an investor wishes to exit, seek LTC because we listen, we collaborate, and we engage. The evidence of this success can be seen in our accelerating year-to-date external growth that, in addition to the $160 million previously mentioned, includes an acquisition pipeline of over $500 million in deals under review and consists entirely of SHOP. Our acquisition strategy is to partner with experienced, regionally focused operating teams and add newer communities with lower CapEx requirements. These are stabilized assets. That does not equate to low growth. We are buying assets with strong pricing power, high incremental margins, and durable contributions to earnings growth. Our expanding SHOP platform is positioned to perform over time. We expect to achieve unlevered IRRs in the low to mid-teens. I'll now pass the call to Cece for a review of our financial results. Thank you, Dave. Towards the end of the year, we bolstered our growth capacity by expanding our credit facility to $800 million, including $200 million of term loans. We anticipate receiving nearly $270 million in asset sales and loan payoffs in 2026, which will be used to fund future investments. Using multiple levers, including proceeds from our ATM program, borrowings under our revolving line of credit, and asset sales where attractive pricing provides a better cost of capital, we feel very confident in our financial strength, which will support our ability to fuel our SHOP growth. With the $270 million of expected proceeds, our liquidity stands at $810 million on a pro forma basis. We have minimal near-term debt maturities, giving us virtually no refinancing risk. At year-end, our debt to annualized adjusted EBITDA for real estate was 4.5x, and our annualized adjusted Fixed Charge Coverage Ratio was 4.4x. While we are well within our stated leverage target of 4-5x, we believe we can reduce that further over time. Compared with the same quarter last year, Core FFO per share improved $0.05-$0.70, and Core FAD per share improved $0.07-$0.73. These results represent Core FFO per share and Core FAD per share growth of 8% and 11%, respectively. The increases were primarily due to new SHOP acquisitions and triple net conversions to SHOP, partially offset by an increase in interest expense and decreased rent related to asset sales. Our 2026 guidance for Core FFO per share is projected to be in the range of $2.75-$2.79, and Core FAD per share in the range of $2.82-$2.86. For the first quarter, we expect Core FFO per share in the range of $0.66-$0.68 and Core FAD in the range of $0.68-$0.70. Our 2026 guidance includes $400 million-$800 million of SHOP acquisitions, with SHOP NOI in the range of $65 million-$77 million and FAD CapEx of approximately $5 million. Our guidance includes the $270 million of proceeds from asset sales and loan payoffs. Other assumptions underpinning this guidance are detailed in yesterday's earnings press release and supplemental, which are posted on our website. I'll turn the call over to Clint for some closing comments. Thanks, Cece. 2026 will complete LTC's transformation from a triple net skilled nursing and seniors housing REIT, fueling our growth through RIDEA to become a larger SHOP-focused REIT. Increased NOI growth will come organically through our existing portfolio and through new SHOP acquisitions. With our investment guidance of $600 million at the midpoint in 2026, SHOP will exceed $1 billion of assets and represent 45% of our portfolio by year-end. Including the SHOP acquisitions under contract, the average age of our SHOP portfolio will be nine years, reflecting our strategy of investing in newer SHOP communities that are best positioned to compete against future new development. We will drive strong organic SHOP NOI and per share growth through aligned operator relationships and the quality of the assets. In fact, we believe that organic NOI growth will double by the end of this year compared with our pre-transformation to SHOP. Most importantly, on behalf of the entire LTC team, I want to extend a sincere thank you to the operators who have placed their trust in us, helping us establish and grow our SHOP platform. We have eight SHOP operator relationships in our portfolio, six new to LTC since our launch, and in Q2, we will be adding two more. Each one of these operator relationships represents a huge opportunity to continue driving LTC SHOP growth through management agreements that align interests to deepen our relationships. We have a simplified and compelling investment thesis, which we are executing upon speed, determination, and conviction to power future growth by optimizing risk-adjusted returns to our shareholders while increasing our organic and investment growth profile. This success is made possible by a talented group of tenured employees and new professionals recently joining our team, all coalescing around a transforming LTC that is standing out in the industry and is well positioned for tremendous growth. We are ready to take your questions. Thank you. We'll now be conducting a question-and-answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to move your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment, please, while we poll for questions. Our first question today is coming from John Kilichowski from Wells Fargo. Your line is now live. Hi, good morning. Thanks for taking my question. You know, this pivot is happening relatively quickly, and it sounds like messaging has been, it's not if, but when, you know, something happens to the SNF funding landscape. I'm curious, in your minds, like, what are the nearest one or two greatest threats to SNFs today that could cause some sort of rerating that the market isn't expecting? From a SNF perspective, John, I would say. Correct. There's a tremendous amount of private capital, I think, that's driving prices in skilled nursing, so that's one element that could have a change. Just as we've generally seen over the years, I mean, skilled nursing at, you know, cap rates that it has, it has stroke-of-the-pen risk, and things tend to happen when you least expect it. We just see much more organic growth from investing in newer assets with better growth profiles. That's really our thesis and why we're aggressively growing into SHOP. Okay. Well, the 14% same-store growth is a great starting point. I'm curious, is this sort of a, like, a 3-4 year run rate as the business remains immune, likely immune to supply shocks and demand is relatively known? Or do you forecast that moderating slightly as occupancy fully stabilizes at these assets? It's a fair question. Hi, John, this is Gibson. It's a fair question. you know, we're, this is a relatively new portfolio for us, and so, you know, we're comfortable with the guidance. I think the way to think about this is that, you know, that pro forma occupancy that I gave in my prepared remarks, 89.7, that's pretty close to stabilized levels. We're encouraged to see that, you know, this year, our expectations are in that mid-teens, growth rate. We really just don't want to get into the out years right now. Thank you. Thank you. Next question is coming from Austin Wurschmidt from KeyBanc Capital Markets. Your line is now live. Yeah, just going back to SHOP for a minute. Gibson, you had highlighted that the 13 original assets grew NOI by 22% last year on a, you know, pro forma basis versus 24. Can you give us a sense how the 14% on the 27 assets compares to how that trended in 2025 or just versus the fourth quarter? I Let me see if I can answer this in another way and see if that, if that scratches your itch, Austin Wurschmidt. If you look at our projections, 25 over 24, and you pull out that original 13, our growth rate of 14% isn't gonna materially change. That's helpful. Then maybe just going back to John's question a little bit differently here. I mean, you know, you mentioned the 89% is nearing stabilization, but this portfolio does continue to evolve as you know, layer on additional acquisitions. I mean, what are your latest thoughts for the portfolio today as to where stabilized occupancy levels are? You know, what sort of, you know, the right feeling on where you can kind of send out, you know, in place rent increases or drive RevPOR in the coming years? Thanks. This is Pam. You know, for stabilized occupancy, given the lack of supply that we see over the next few years, you know, we feel occupancy can climb into the 90s. We did not project that in our 2026 guidance, but it is possible. And, you know, it's always a fine balance between occupancy and rate growth, and we feel that this portfolio has the opportunity for both. This also, this is a key of what we're focused on, what we're investing in. It's newer assets, and we've emphasized that in our comments about the average age. We feel those are going to be best positioned to compete against new development. That will happen, and we think in the interim, they'll have pricing power to be able to drive growth. We've done that by design, on intention, looking long term, to have assets that can effectively compete in the future. What was the in-place rent increases to now for this year? Well, either the RevPOR guidance we gave is around the 5%. That ranges, you know, across the portfolio from, you know, 4.5 up to 7. But, you know, a lot of the hay is in the barn with respect to year, you know, the year-end increases or increases that went into effect in January. We have some more that increase on anniversary, and then we have to see what happens with the street rate. I think, you know, we're comfortable with our all-in, like, a RevPOR assumption of that 5% range. Very helpful. Thanks, everyone. Thank you. Thank you. Next question is coming from Juan Sanabria from BMO Capital Markets. Your line is now live. Good morning. Just hoping you could talk a little bit about the pipeline of investments and kind of the year one yields you're underwriting for SHOP. On the flip side, how we should be thinking about the disposition yields for some of the SNF that you're selling. You've already given us the loan piece for it, so thank you for that. Hi, Juan, this is Dave. I'll take the first half, and I think Gibson will take the second half. From a acquisition pipeline perspective, we saw in our remarks that we have $160 million under LOI and in process. We are looking at generally what we looked at last year in terms of sort of going in year one yields, about 7% or so, with good growth headroom beyond that. Also, Juan, one, you know, one thing to think about on what we're looking at for deals, as Pam mentioned in her prepared remarks, I mean, the size of LTC, really, we're using to our advantage to be able to grow because we can look at, you know, smaller transactions, which have better price points, to be able to drive those initial yields. We think that's a huge opportunity for us as we're growing this portfolio and are projecting on gross book to be at 45% SHOP by the end of the year since we launched this midyear in 2025. Juan, this is Gibson on the dispositions. I think the Prestige loan is a unique case where that, you know, we had a heavy concentration with one operator in one state, you know, that caused some disruption a couple years back because of that state's specific reimbursement program. You know, that was a strategic decision to de-risk the portfolio and reduce operator concentration. We still have investments with Prestige, and it's not a Prestige thing, it's just an overall operator concentration thing. On the rest, if you blend it together, we're selling at about an 8.2 cap. There, if you think about that in terms of, you know, swapping out of older skilled nursing assets, as we've been doing on an opportunistic basis over the last year and a half or so, an 8.2% with anywhere from 2%-2.5% escalators, and we can recycle that into newer seniors housing assets that are really built and will be competitive over the long term. We feel like that's a good risk-reward trade for our shareholders. Thanks. Then, I just wanted to ask, ALG, you know, there was previously some discussion about some change in that portfolio going forward and some options they had. Just curious how we should be thinking about piece of your exposure, longer term? I think for ALG, well, I think that, you know, they do have the purchase options we talked previously about. It's really more interest rate sensitive for them to look at probably bond financing to take this out. We look at this probably would be into 2027. We have 3 different to 4 different investments with them. There could be one of the small portfolios could trade maybe towards the end of this year, possibly, but I would really think of it more as a 2027 event. All right. If I could just be greedy, one more question. For the incremental financing, like if you hit the top end of your acquisition guidance, how should we think about that? It sounds like you said leverage could go down. I'm not sure if that's a product of EBITDA growing, or if we should assume that maybe the goal would be to over-equitize positions over and above kind of the dispositions you'd laid out or loan repayments. Just curious on the funding for the pipeline at kind of the different, either the midpoint or the high end in particular. Thanks. Thanks, Juan. It's Pam. I think you're thinking about it right. I mean, the beauty of a higher growing portfolio is that your deleveraging happens naturally, a lot faster through EBITDA growth. We would also look to over-equitize acquisitions if the pricing's right. Thank you. Thank you. As a reminder, that's star one to be placed into question queue. Our next question is coming from Michael Carroll from RBC Capital Markets. Your line is now live. Thanks. Clint or Dave, can you guys provide some more color on the competitive landscape for seniors housing deals right now? I mean, how difficult is it for you to find deals that you wanna own, that meets your underwriting? When you do find those transactions, I guess, where have cap rates trended? I know you've been talking about that 7% range for some time. I mean, are we starting to see that tick a little bit lower? Is it hard to find yields at that 7 yield? This is Dave. Clint, hit on this nicely in terms of the importance of a deal to LTC and how our scale works for us. We do a good job of finding transactions are probably in that onesie, twosie timeframe and our size and our customers or sellers know that they're important to us. One great benefit here. It's been sort of in fashion to have buyer interviews, so I can bring a C-suite, bring my CEOs onto those calls to sort of underscore how important the deal is. As you know, with any seller, certainty of execution matters an awful lot. We can give a transaction a lot of attention and hyperfocus. We've continued to see a pretty good stream of opportunities, and generally in that first year, underwriting of around seven or so. It doesn't mean that there's not pressure, our whole world is looking at a lot of transactions to find a few that are worthy of underwriting and progressing through the process. We're seeing a good flow of potential opportunities, and we feel good that we'll find the right ones for LTC out of that stream. With that, with that backdrop, you know, we've guided to $600 million at the midpoint for investments for 2026, and with deals closed under contract, we're almost halfway through that. Although it's a competitive landscape, we feel that we've been able to be at the table on transactions. A lot of the deals that we have, as Dave mentioned previously, are operators bringing us into transactions, which with having soon to have 10 operative relationships in our portfolio, we think that's gonna help drive continued access to deals. When we're looking at them on, you know, onesie, twosie transactions, it can be helpful. Another thing that we're seeing also, on one of the transactions we're working on is, the seller is looking at a tax-efficient transaction, we're looking at a DownREIT structure. When you look at financing transactions and utilizing equity pricing through a DownREIT structure, it can be an attractive option for us. In this type of environment, if you look at the 7 yields, I mean, do you foresee, like, if you kind of get back to the end of this year, that you might have to go below that? Is there enough transactions at that level that you think at least through this year, you can still achieve that 7% target? As Clint mentioned, right, we have $270 in the door, right? Those are set. We've got another $300 million to go. Nothing's easy if you're gonna do it well, so we'll be working hard to find the right deals all year long. We are steadfast in working to maintain that kind of year-one yield of seven. Ed, definitely there will be pressure in the industry. A lot of people are discovering senior housing or people showing up at the table. We still feel like we've got a good opportunity, kind of, given our relationship focus and our style of execution, to find the deals that make sense for LTC. Mike, I have one more thing to add to that. You know, last year, when we talked about our projected underwriting, and being at 7, very conservative, our 2026 guidance is already a year 1 over 7.5%. It's like 7.7%. We're already beating that. We've created value there just in a few, you know, short months, and expect to create more. Okay, great. No, that's helpful. Just last for me, related to Prestige on the remaining loans that LTC is holding, after they potentially pay them off in July or half of them, I mean, is there a desire to have them pay off those loans, too, or should we think about that as a longer-term hold that LTC plans to continue to maintain? You should think of it as a long-term hold. You know, right now, we, after the payoff of $180 million, we'll have $90 million remaining with them. They will be reducing concentration, as Gibson spoke about, and they will probably fall outside of our top five operator relationships. They don't have an option to prepay those. Okay, great. Thank you. Thank you. Next question is coming from Richard Anderson from Cantor Fitzgerald. Your line is now live. Thanks, good morning. I just wanna make this sort of crystal clear. Is your expectation on a go-forward basis, 2027 and beyond, for your SHOP business to be producing, you know, sort of low, mid-teens type of same-store NOI growth? Is that the target you're going after, or is it something lower than that? We're gonna see how this year plays out. We're excited about what we're seeing as we go into this year and as we get into later in the year, Rich, we'll update that. I mean, I think going in a few calls ago, you know, we said that we were going in at 7 and targeted low teens IRRs. That, you know, that's basically telling you, we expect mid-single-digit growth over the long term. I think as we work through the process, you know, we just acquired a lot of this, getting to really understand the portfolio. We're excited, and as Pam mentioned, in our projections, we're assuming higher yields on this initial purchase price than we did at acquisition. I think we're excited about the opportunity in 2026, and we hope that continues on, but we'll update you as we get to the end of the year or. Yeah, the twenty- Throughout the year. The 22% NOI and the 13%, that's really apples to oranges from a previous net lease structure, correct? Just so I understand that correctly. Yeah, that's fair. Yes. That was intended just to give visibility into regard to what we had under a rent structure and what we had just for comparable metrics, what it looked like under SHOP. That was why we broke that out separate. That's right. Understood. Sorry, go ahead. Go ahead. No, you're good. I was just gonna say, yeah, but I mean, that was, you know, we were in the structure, able to capture the upside in those properties. ...you know, that was something strategically, as we thought about entering RIDEA, really started talking about seriously 18 months ago, how to go about doing that. You know, we're just really excited that we're able to do that and be able to capture the upside, and do so in a way that aligns our interests with our operators, you know, to incentivize them to drive performance. Yeah, your comment that we're comparing that increase in NOI or the triple net structure is fair. I will say that, you know, as we did that, we were able to capture the upside, because the coverage on that Anthem portfolio was pretty close to where the rents we were collecting. Right. Understood. Got that. Okay, in terms of the CapEx, I see your guidance is, $0.10, a little less than $5 million a year on whatever you own, you know, average, you know, weighted average-wise for the year. I don't know, $5 million just feels low to me, for a billion-dollar portfolio. Is that a, is that a function of its age? You know, I wonder, you know, what you think the CapEx burden might be for LTC going forward when you're kind of fully built out and, you know, $1 billion or so of assets? Yeah, that's a fair question. I guess I'll answer it this way: we've assumed basically about $1,500 a unit. For the portfolio that we currently have, the 30 properties, you know, we did go through those recurring CapEx budgets, and we feel pretty comfortable with those given the age of the assets. We didn't feel like we were really stretching or deferring anything and going, and felt like that was what was requisite to keep the buildings competitive. We'll have to see how that evolves. I'll say the overall number includes, you know, assumption, kind of a weighted average, so that $1,500 a unit for acquisitions going forward. I don't think you can compare our CapEx budget to our peers just because the makeup of our SHOP portfolio is so different. I mean, with an average age of nine years, that's really young, really new buildings that don't have a lot of CapEx requirements. Right. That, again, that was strategic on our part, because as we were introducing this portfolio, you know, to simplify the integration of this and have assets that can compete against potential new development, I mean, we do see that over time, that will increase. Yeah. For the interim and short-term period, that's why you're seeing a lower spend. Yep. Okay. Yeah, I was gonna say, young does become old, unfortunately, over time. We'll see. We all age, Rich. We all age. Rich, I will say, as we work through the budgets, we're not deferring things, so we're not targeting a number. We're committed to invest in the portfolio to keep it competitive. If that number drifts up to drive NOI growth, that's what we'll do. We did try to look at this from a holistic perspective, and we certainly weren't looking to trim number out of those maintenance CapEx budgets going forward. Last for me. You call yourself done at the end of 2026 with this transformation, 45%, essentially, SHOP. Is that your version of the efficient frontier, or will you expect this SHOP exposure to sort of trickle up from that point forward? Or is like a 50% exposure to SHOP sort of your kind of your sweet spot? Thanks. No, we don't have a target on it, Rich. It really, you know, transformation versus evolution. I mean, transformation, this is something that we've done quickly, and to Clint's. Yeah ... you know, prepared remark point, 18 months. That's really, really fast to change the complexion of a company. After this year, it's an evolution. We will continue to invest where we see the best return for our shareholders, which in our crystal ball, looks like it will continue to be SHOP. But if it's not, we'll pivot to the investment that, you know, drives shareholder value the best. But for right now, it'll be an evolution more towards SHOP than a transformation after this year. Understood. Thanks very much, everyone. Thank you. Next question is coming from Omotayo Okusanya from Deutsche Bank, your line is now live. Hey, guys, thanks for giving me time. Given the RevPOR export spread you guys saw in the quarter, how confident are you that the SHOP portfolio can deliver the growth you're guiding to? Can you walk us through kind of the key operational levers that you kind of are relying on to get you guys there? I think the key levers are laid out there in the supplemental on our guidance page. I think that if you zoom out and with occupancy growth, you know, our export expectations are just slightly below what people would expect for inflation. I don't think that that's a particularly aggressive assumption. You know, I think some may point to the top-line occupancy growth of 150 basis points is maybe a little conservative. We're really trying to, you know, it's a 30-property portfolio, the 27 that we guided to, which the 27 being 13 we converted and then everything that we've acquired since. Everything's kind of at or near stabilization. You know, it's really hard to, with a portfolio that size, really zoom in more than the detail that we've given you on the, on the operational levers. I mean, we feel like that's appropriate. You know, just with 29 or sorry, with 27 properties, you're gonna have more variance than you would in a 500-property portfolio. You know, I think, again, we feel good about the RevPOR assumptions going forward. We think it's achievable. We don't think it's a layup.... export, same thing. We, you know, we try to put the Goldilocks level of guidance out there, you know, that stretches our operators but is achievable. Right. That makes sense. I guess, the second question I have is, I know you guys have talked about, and we all know, like, you know, supply hasn't really been an issue, but has anything around that changed at all? I would say not really supply. No, we haven't seen... What you do see, though, more is that operators that have a track record in development are talking more about gearing up for development. I think that's where you're hearing more talk. It's not so much shovels in the ground. It's more of they see that there's going to be a need for supply in the future, and they have experience doing it, and they're trying to prepare to be, to participate in that when the time does come. I think what specifically within our SHOP portfolio, construction activity is very light. You know, there may be one under construction, one under consideration, you know, and some expansions here and there around the edges, but it's very light. Makes sense. I appreciate the time, guys. Thank you. We've reached the end of our question and answer session. Before I turn the call back to management, please note that today's comments, including the question and answer session, may have included forward-looking statements subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in the LTC Properties filings with the Securities and Exchange Commission from time to time, including the company's most recent Form 10-K, dated December 31st, 2025. LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. I'd now like to turn the floor back over to management for any further closing comments. Thank you, operator, and thanks to everyone for your thoughtful questions. We appreciate your continued interest, and we look forward to updating you on our progress next quarter. Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

Speaker 10: Welcome to the LTC Properties, Inc. fourth quarter 2025 earnings conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It's now my pleasure to introduce Pam Kessler, Co-President and Co-CEO. Pam, please go ahead. Welcome to the LTC Properties, Inc. fourth quarter 2025 earnings conference call and webcast. welcome to the ltc properties inc fourth quarter 2025 earnings conference call and webcast At this time, all participants are in listen-only mode. at this time all participants are in listen-only mode A question and answer session will follow the formal presentation. a question and answer session will follow the formal presentation You may be placed in the question queue at any time by pressing star one on your telephone keypad. you may be placed in the question queue at any time by pressing star one on your telephone keypad As a reminder, this conference is being recorded. as a reminder this conference is being recorded If anyone should require operator assistance, please press star zero. if anyone should require operator assistance please press star zero It's now my pleasure to introduce Pam Kessler, Co-President and Co-CEO. it's now my pleasure to introduce pam kessler co-president and co-ceo Pam, please go ahead. pam please go ahead

Speaker 11: Good morning, and thank you for joining us. Eight months after launching our SHOP initiative, we are almost halfway through our transformation from a lower growth triple net REIT into a faster growing, SHOP-focused REIT, a transformation that will lead to higher multi-year internal and external SHOP and earnings growth, to superior shareholder returns. This transformation has included substantial investment in people, systems, and technology, which will continue to be a focus to support our aggressive growth plans. We have made great progress growing our seniors housing portfolio through SHOP, reflecting successful execution across every aspect of the business. Today, we are guiding to $600 million in acquisitions at the midpoint for 2026, all of which we anticipate will be in SHOP. This acquisition guidance is nearly 70% higher than SHOP acquisitions in 2025. Good morning, and thank you for joining us. good morning and thank you for joining us Eight months after launching our SHOP initiative, we are almost halfway through our transformation from a lower growth triple net REIT into a faster growing, SHOP-focused REIT, a transformation that will lead to higher multi-year internal and external SHOP and earnings growth, to superior shareholder returns. eight months after launching our shop initiative we are almost halfway through our transformation from a lower growth triple net reit into a faster growing shop-focused reit a transformation that will lead to higher multi-year internal and external shop and earnings growth to superior shareholder returns This transformation has included substantial investment in people, systems, and technology, which will continue to be a focus to support our aggressive growth plans. this transformation has included substantial investment in people systems and technology which will continue to be a focus to support our aggressive growth plans We have made great progress growing our seniors housing portfolio through SHOP, reflecting successful execution across every aspect of the business. we have made great progress growing our seniors housing portfolio through shop reflecting successful execution across every aspect of the business Today, we are guiding to $600 million in acquisitions at the midpoint for 2026, all of which we anticipate will be in SHOP. today we are guiding to $600 million in acquisitions at the midpoint for 2026 all of which we anticipate will be in shop This acquisition guidance is nearly 70% higher than SHOP acquisitions in 2025. this acquisition guidance is nearly 70% higher than shop acquisitions in 2025 2026 started off strong, with $108 million in SHOP acquisitions already completed and another $160 million on schedule to close in the second quarter, which takes us nearly halfway to our $600 million midpoint investment guidance for the year. Throughout our transformation, we have continued to maintain a strong balance sheet with well-laddered debt maturities and a FAD payout ratio below 80%. Since launching SHOP last May, we grew it to 25% of our investment portfolio by year-end. Based on our 2026 acquisition guidance, we expect to end this year with SHOP growing to 45% of our investment portfolio and 40% of our NOI, capitalizing on LTC's ability to accelerate our growth through acquisitions. By launching SHOP as a small cap REIT, we are leveraging the denominator effect to our advantage. 2026 started off strong, with $108 million in SHOP acquisitions already completed and another $160 million on schedule to close in the second quarter, which takes us nearly halfway to our $600 million midpoint investment guidance for the year. 2026 started off strong with $108 million in shop acquisitions already completed and another $160 million on schedule to close in the second quarter which takes us nearly halfway to our $600 million midpoint investment guidance for the year Throughout our transformation, we have continued to maintain a strong balance sheet with well-laddered debt maturities and a FAD payout ratio below 80%. throughout our transformation we have continued to maintain a strong balance sheet with well-laddered debt maturities and a fad payout ratio below 80% Since launching SHOP last May, we grew it to 25% of our investment portfolio by year-end. since launching shop last may we grew it to 25% of our investment portfolio by year-end Based on our 2026 acquisition guidance, we expect to end this year with SHOP growing to 45% of our investment portfolio and 40% of our NOI, capitalizing on LTC's ability to accelerate our growth through acquisitions. based on our 2026 acquisition guidance we expect to end this year with shop growing to 45% of our investment portfolio and 40% of our noi capitalizing on ltc's ability to accelerate our growth through acquisitions By launching SHOP as a small cap REIT, we are leveraging the denominator effect to our advantage. by launching shop as a small cap reit we are leveraging the denominator effect to our advantage LTC's smaller initial footprint provides the power to capture outsized growth, where even modest investments have a meaningful and visible impact. Additionally, after the prepayment of the $180 million Prestige loan expected later this year, loans should be reduced to less than 10% of our portfolio, and skilled nursing investments will represent less than 30% by the end of 2026. This strategic portfolio transformation reflects our SHOP launch and rapid growth within a targeted 18-month period. With our transformation complete at the end of 2026, we see the opportunity for continued accelerated internal and external growth powered by SHOP in 2027. Now I'll turn the call over to Gibson to discuss our portfolio and strong SHOP performance. LTC's smaller initial footprint provides the power to capture outsized growth, where even modest investments have a meaningful and visible impact. ltc's smaller initial footprint provides the power to capture outsized growth where even modest investments have a meaningful and visible impact Additionally, after the prepayment of the $180 million Prestige loan expected later this year, loans should be reduced to less than 10% of our portfolio, and skilled nursing investments will represent less than 30% by the end of 2026. additionally after the prepayment of the $180 million prestige loan expected later this year loans should be reduced to less than 10% of our portfolio and skilled nursing investments will represent less than 30% by the end of 2026 This strategic portfolio transformation reflects our SHOP launch and rapid growth within a targeted 18-month period. this strategic portfolio transformation reflects our shop launch and rapid growth within a targeted 18-month period With our transformation complete at the end of 2026, we see the opportunity for continued accelerated internal and external growth powered by SHOP in 2027. with our transformation complete at the end of 2026 we see the opportunity for continued accelerated internal and external growth powered by shop in 2027 Now I'll turn the call over to Gibson to discuss our portfolio and strong SHOP performance. now i'll turn the call over to gibson to discuss our portfolio and strong shop performance

Speaker 5: Thank you, Pam. We've undertaken the transformation to increase the organic growth and new investment growth profile of our portfolio and maximize risk-adjusted returns for our shareholders. To that end, we have focused over the last year and a half to develop and enhance our platform to position LTC and our operators for success, and we'll continue to make further investments going forward to position LTC for profitable growth. In addition to adding accounting, FP&A, and data analytics resources, we recently welcomed two vice presidents to our asset management team, both with extensive experience in systems development and seniors housing asset management. Our SHOP portfolio results supported our 2025 strategy by outperforming expectations. Thank you, Pam. thank you pam We've undertaken the transformation to increase the organic growth and new investment growth profile of our portfolio and maximize risk-adjusted returns for our shareholders. we've undertaken the transformation to increase the organic growth and new investment growth profile of our portfolio and maximize risk-adjusted returns for our shareholders To that end, we have focused over the last year and a half to develop and enhance our platform to position LTC and our operators for success, and we'll continue to make further investments going forward to position LTC for profitable growth. to that end we have focused over the last year and a half to develop and enhance our platform to position ltc and our operators for success and we'll continue to make further investments going forward to position ltc for profitable growth In addition to adding accounting, FP&A, and data analytics resources, we recently welcomed two vice presidents to our asset management team, both with extensive experience in systems development and seniors housing asset management. in addition to adding accounting fp&a and data analytics resources we recently welcomed two vice presidents to our asset management team both with extensive experience in systems development and seniors housing asset management Our SHOP portfolio results supported our 2025 strategy by outperforming expectations. our shop portfolio results supported our 2025 strategy by outperforming expectations The original 13 properties converted to SHOP grew NOI over 2024 pro forma NOI by 22% and produced $16.2 million of combined rent and NOI in 2025, compared to $12.3 million of rent in 2024. The remainder of the SHOP portfolio outperformed expectations in the fourth quarter by contributing $5.9 million of NOI, about $700,000 above the midpoint of guidance. Our 2026 SHOP NOI guidance includes 13 properties we originally converted and 14 properties acquired to date. Our guidance for these 27 properties assumes 14% NOI growth at the midpoint for full year 2026 over pro forma 2025. The original 13 properties converted to SHOP grew NOI over 2024 pro forma NOI by 22% and produced $16.2 million of combined rent and NOI in 2025, compared to $12.3 million of rent in 2024. the original 13 properties converted to shop grew noi over 2024 pro forma noi by 22% and produced $16.2 million of combined rent and noi in 2025 compared to $12.3 million of rent in 2024 The remainder of the SHOP portfolio outperformed expectations in the fourth quarter by contributing $5.9 million of NOI, about $700,000 above the midpoint of guidance. the remainder of the shop portfolio outperformed expectations in the fourth quarter by contributing $5.9 million of noi about $700,000 above the midpoint of guidance Our 2026 SHOP NOI guidance includes 13 properties we originally converted and 14 properties acquired to date. our 2026 shop noi guidance includes 13 properties we originally converted and 14 properties acquired to date Our guidance for these 27 properties assumes 14% NOI growth at the midpoint for full year 2026 over pro forma 2025. our guidance for these 27 properties assumes 14% noi growth at the midpoint for full year 2026 over pro forma 2025 This subset of properties realized occupancy of 89.7% in 2025, which we are projecting will grow by about 150 basis points in 2026. We further project that RevPAR will grow by approximately 5% and that FFO will grow by 2.5%. We do want to note that the 2025 results for the 14 properties we have acquired include occupancy and performance as reported by the prior owners, adjusted for the current management fee structure. We will continue changing the mix of our portfolio in 2026. Prestige Healthcare has delivered notice of their intent to prepay on or about July 1st, the $180 million loan, which is currently yielding approximately 11%. This subset of properties realized occupancy of 89.7% in 2025, which we are projecting will grow by about 150 basis points in 2026. this subset of properties realized occupancy of 89.7% in 2025 which we are projecting will grow by about 150 basis points in 2026 We further project that RevPAR will grow by approximately 5% and that FFO will grow by 2.5%. we further project that revpar will grow by approximately 5% and that ffo will grow by 2.5% We do want to note that the 2025 results for the 14 properties we have acquired include occupancy and performance as reported by the prior owners, adjusted for the current management fee structure. we do want to note that the 2025 results for the 14 properties we have acquired include occupancy and performance as reported by the prior owners adjusted for the current management fee structure We will continue changing the mix of our portfolio in 2026. we will continue changing the mix of our portfolio in 2026 Prestige Healthcare has delivered notice of their intent to prepay on or about July 1st, the $180 million loan, which is currently yielding approximately 11%. prestige healthcare has delivered notice of their intent to prepay on or about july 1st the $180 million loan which is currently yielding approximately 11% Additionally, we expect to sell 5 skilled nursing properties and have certain loan payoffs totaling $90 million in the next 60 days. These transactions, together with our external growth through SHOP, will meaningfully reduce our skilled nursing and loan exposure. With that, I'll turn things over to Dave for an update on our growth strategy. Additionally, we expect to sell 5 skilled nursing properties and have certain loan payoffs totaling $90 million in the next 60 days. additionally we expect to sell 5 skilled nursing properties and have certain loan payoffs totaling $90 million in the next 60 days These transactions, together with our external growth through SHOP, will meaningfully reduce our skilled nursing and loan exposure. these transactions together with our external growth through shop will meaningfully reduce our skilled nursing and loan exposure With that, I'll turn things over to Dave for an update on our growth strategy. with that i'll turn things over to dave for an update on our growth strategy

Speaker 4: Thank you, Gibson. In 2025, we put $360 million to work through SHOP acquisitions. Thank you, Gibson. thank you gibson In 2025, we put $360 million to work through SHOP acquisitions. in 2025 we put $360 million to work through shop acquisitions By the end of the second quarter of this year, we will have added an additional $270 million, moving us rapidly towards our $600 million midpoint acquisition guidance and making 2026 our most active investment year yet, as we accelerate our growth towards an increasingly SHOP-weighted portfolio. LTC's relationship-focused culture is the foundation of our success. In 2025, we closed two follow-on transactions with existing operating partners. Our momentum is continuing in 2026, with another follow-on deal completed and two more in the $160 million we expect to close shortly. At the same time, we are in active conversations with operating partners new to LTC and are evaluating acquisitions to kick off those relationships. In a competitive senior housing acquisitions environment, our smaller asset base and personal relationship-driven strategy are competitive advantages. By the end of the second quarter of this year, we will have added an additional $270 million, moving us rapidly towards our $600 million midpoint acquisition guidance and making 2026 our most active investment year yet, as we accelerate our growth towards an increasingly SHOP-weighted portfolio. by the end of the second quarter of this year we will have added an additional $270 million moving us rapidly towards our $600 million midpoint acquisition guidance and making 2026 our most active investment year yet as we accelerate our growth towards an increasingly shop-weighted portfolio LTC's relationship-focused culture is the foundation of our success. ltc's relationship-focused culture is the foundation of our success In 2025, we closed two follow-on transactions with existing operating partners. in 2025 we closed two follow-on transactions with existing operating partners Our momentum is continuing in 2026, with another follow-on deal completed and two more in the $160 million we expect to close shortly. our momentum is continuing in 2026 with another follow-on deal completed and two more in the $160 million we expect to close shortly At the same time, we are in active conversations with operating partners new to LTC and are evaluating acquisitions to kick off those relationships. at the same time we are in active conversations with operating partners new to ltc and are evaluating acquisitions to kick off those relationships In a competitive senior housing acquisitions environment, our smaller asset base and personal relationship-driven strategy are competitive advantages. in a competitive senior housing acquisitions environment our smaller asset base and personal relationship-driven strategy are competitive advantages We find opportunities in both single and multi-property investments and do not need to chase overpriced, large on-market transaction. We are keenly focused on every deal and every LTC operator relationship, each of which directly contributes to our growth and furthers our transformation into a SHOP growth engine. Existing and prospective operators desiring to grow their portfolios or retain assets when an investor wishes to exit, seek LTC because we listen, we collaborate, and we engage. The evidence of this success can be seen in our accelerating year-to-date external growth that, in addition to the $160 million previously mentioned, includes an acquisition pipeline of over $500 million in deals under review and consists entirely of SHOP. Our acquisition strategy is to partner with experienced, regionally focused operating teams and add newer communities with lower CapEx requirements. We find opportunities in both single and multi-property investments and do not need to chase overpriced, large on-market transaction. we find opportunities in both single and multi-property investments and do not need to chase overpriced large on-market transaction We are keenly focused on every deal and every LTC operator relationship, each of which directly contributes to our growth and furthers our transformation into a SHOP growth engine. we are keenly focused on every deal and every ltc operator relationship each of which directly contributes to our growth and furthers our transformation into a shop growth engine Existing and prospective operators desiring to grow their portfolios or retain assets when an investor wishes to exit, seek LTC because we listen, we collaborate, and we engage. existing and prospective operators desiring to grow their portfolios or retain assets when an investor wishes to exit seek ltc because we listen we collaborate and we engage The evidence of this success can be seen in our accelerating year-to-date external growth that, in addition to the $160 million previously mentioned, includes an acquisition pipeline of over $500 million in deals under review and consists entirely of SHOP. the evidence of this success can be seen in our accelerating year-to-date external growth that in addition to the $160 million previously mentioned includes an acquisition pipeline of over $500 million in deals under review and consists entirely of shop Our acquisition strategy is to partner with experienced, regionally focused operating teams and add newer communities with lower CapEx requirements. our acquisition strategy is to partner with experienced regionally focused operating teams and add newer communities with lower capex requirements These are stabilized assets. That does not equate to low growth. We are buying assets with strong pricing power, high incremental margins, and durable contributions to earnings growth. Our expanding SHOP platform is positioned to perform over time. We expect to achieve unlevered IRRs in the low to mid-teens. I'll now pass the call to Cece for a review of our financial results. These are stabilized assets. these are stabilized assets That does not equate to low growth. that does not equate to low growth We are buying assets with strong pricing power, high incremental margins, and durable contributions to earnings growth. we are buying assets with strong pricing power high incremental margins and durable contributions to earnings growth Our expanding SHOP platform is positioned to perform over time. our expanding shop platform is positioned to perform over time We expect to achieve unlevered IRRs in the low to mid-teens. we expect to achieve unlevered irrs in the low to mid-teens I'll now pass the call to Cece for a review of our financial results. i'll now pass the call to cece for a review of our financial results

Speaker 2: Thank you, Dave. Towards the end of the year, we bolstered our growth capacity by expanding our credit facility to $800 million, including $200 million of term loans. We anticipate receiving nearly $270 million in asset sales and loan payoffs in 2026, which will be used to fund future investments. Using multiple levers, including proceeds from our ATM program, borrowings under our revolving line of credit, and asset sales where attractive pricing provides a better cost of capital, we feel very confident in our financial strength, which will support our ability to fuel our SHOP growth. With the $270 million of expected proceeds, our liquidity stands at $810 million on a pro forma basis. We have minimal near-term debt maturities, giving us virtually no refinancing risk. Thank you, Dave. thank you dave Towards the end of the year, we bolstered our growth capacity by expanding our credit facility to $800 million, including $200 million of term loans. towards the end of the year we bolstered our growth capacity by expanding our credit facility to $800 million including $200 million of term loans We anticipate receiving nearly $270 million in asset sales and loan payoffs in 2026, which will be used to fund future investments. we anticipate receiving nearly $270 million in asset sales and loan payoffs in 2026 which will be used to fund future investments Using multiple levers, including proceeds from our ATM program, borrowings under our revolving line of credit, and asset sales where attractive pricing provides a better cost of capital, we feel very confident in our financial strength, which will support our ability to fuel our SHOP growth. using multiple levers including proceeds from our atm program borrowings under our revolving line of credit and asset sales where attractive pricing provides a better cost of capital we feel very confident in our financial strength which will support our ability to fuel our shop growth With the $270 million of expected proceeds, our liquidity stands at $810 million on a pro forma basis. with the $270 million of expected proceeds our liquidity stands at $810 million on a pro forma basis We have minimal near-term debt maturities, giving us virtually no refinancing risk. we have minimal near-term debt maturities giving us virtually no refinancing risk At year-end, our debt to annualized adjusted EBITDA for real estate was 4.5x, and our annualized adjusted Fixed Charge Coverage Ratio was 4.4x. While we are well within our stated leverage target of 4-5x, we believe we can reduce that further over time. Compared with the same quarter last year, Core FFO per share improved $0.05-$0.70, and Core FAD per share improved $0.07-$0.73. These results represent Core FFO per share and Core FAD per share growth of 8% and 11%, respectively. The increases were primarily due to new SHOP acquisitions and triple net conversions to SHOP, partially offset by an increase in interest expense and decreased rent related to asset sales. At year-end, our debt to annualized adjusted EBITDA for real estate was 4.5x, and our annualized adjusted Fixed Charge Coverage Ratio was 4.4x. at year-end our debt to annualized adjusted ebitda for real estate was 4.5x and our annualized adjusted fixed charge coverage ratio was 4.4x While we are well within our stated leverage target of 4-5x, we believe we can reduce that further over time. while we are well within our stated leverage target of 4-5x we believe we can reduce that further over time Compared with the same quarter last year, Core FFO per share improved $0.05- $0.70, and Core FAD per share improved $0.07- $0.73. compared with the same quarter last year core ffo per share improved $0.05- $0.70 and core fad per share improved $0.07- $0.73 These results represent Core FFO per share and Core FAD per share growth of 8% and 11%, respectively. these results represent core ffo per share and core fad per share growth of 8% and 11% respectively The increases were primarily due to new SHOP acquisitions and triple net conversions to SHOP, partially offset by an increase in interest expense and decreased rent related to asset sales. the increases were primarily due to new shop acquisitions and triple net conversions to shop partially offset by an increase in interest expense and decreased rent related to asset sales Our 2026 guidance for Core FFO per share is projected to be in the range of $2.75-$2.79, and Core FAD per share in the range of $2.82-$2.86. For the first quarter, we expect Core FFO per share in the range of $0.66-$0.68 and Core FAD in the range of $0.68-$0.70. Our 2026 guidance includes $400 million-$800 million of SHOP acquisitions, with SHOP NOI in the range of $65 million-$77 million and FAD CapEx of approximately $5 million. Our guidance includes the $270 million of proceeds from asset sales and loan payoffs. Other assumptions underpinning this guidance are detailed in yesterday's earnings press release and supplemental, which are posted on our website. I'll turn the call over to Clint for some closing comments. Our 2026 guidance for Core FFO per share is projected to be in the range of $2.75-$2.79, and Core FAD per share in the range of $2.82-$2.86. our 2026 guidance for core ffo per share is projected to be in the range of $2.75-$2.79 and core fad per share in the range of $2.82-$2.86 For the first quarter, we expect Core FFO per share in the range of $0.66-$0.68 and Core FAD in the range of $0.68-$0.70. for the first quarter we expect core ffo per share in the range of $0.66-$0.68 and core fad in the range of $0.68-$0.70 Our 2026 guidance includes $400 million-$800 million of SHOP acquisitions, with SHOP NOI in the range of $65 million-$77 million and FAD CapEx of approximately $5 million. our 2026 guidance includes $400 million-$800 million of shop acquisitions with shop noi in the range of $65 million-$77 million and fad capex of approximately $5 million Our guidance includes the $270 million of proceeds from asset sales and loan payoffs. our guidance includes the $270 million of proceeds from asset sales and loan payoffs Other assumptions underpinning this guidance are detailed in yesterday's earnings press release and supplemental, which are posted on our website. other assumptions underpinning this guidance are detailed in yesterday's earnings press release and supplemental which are posted on our website I'll turn the call over to Clint for some closing comments. i'll turn the call over to clint for some closing comments

Speaker 3: Thanks, Cece. 2026 will complete LTC's transformation from a triple net skilled nursing and seniors housing REIT, fueling our growth through RIDEA to become a larger SHOP-focused REIT. Increased NOI growth will come organically through our existing portfolio and through new SHOP acquisitions. With our investment guidance of $600 million at the midpoint in 2026, SHOP will exceed $1 billion of assets and represent 45% of our portfolio by year-end. Including the SHOP acquisitions under contract, the average age of our SHOP portfolio will be nine years, reflecting our strategy of investing in newer SHOP communities that are best positioned to compete against future new development. We will drive strong organic SHOP NOI and per share growth through aligned operator relationships and the quality of the assets. Thanks, Cece. 2026 will complete LTC's transformation from a triple net skilled nursing and seniors housing REIT, fueling our growth through RIDEA to become a larger SHOP-focused REIT. thanks cece 2026 will complete ltc's transformation from a triple net skilled nursing and seniors housing reit fueling our growth through ridea to become a larger shop-focused reit Increased NOI growth will come organically through our existing portfolio and through new SHOP acquisitions. increased noi growth will come organically through our existing portfolio and through new shop acquisitions With our investment guidance of $600 million at the midpoint in 2026, SHOP will exceed $1 billion of assets and represent 45% of our portfolio by year-end. with our investment guidance of $600 million at the midpoint in 2026 shop will exceed $1 billion of assets and represent 45% of our portfolio by year-end Including the SHOP acquisitions under contract, the average age of our SHOP portfolio will be nine years, reflecting our strategy of investing in newer SHOP communities that are best positioned to compete against future new development. including the shop acquisitions under contract the average age of our shop portfolio will be nine years reflecting our strategy of investing in newer shop communities that are best positioned to compete against future new development We will drive strong organic SHOP NOI and per share growth through aligned operator relationships and the quality of the assets. we will drive strong organic shop noi and per share growth through aligned operator relationships and the quality of the assets In fact, we believe that organic NOI growth will double by the end of this year compared with our pre-transformation to SHOP. Most importantly, on behalf of the entire LTC team, I want to extend a sincere thank you to the operators who have placed their trust in us, helping us establish and grow our SHOP platform. We have eight SHOP operator relationships in our portfolio, six new to LTC since our launch, and in Q2, we will be adding two more. Each one of these operator relationships represents a huge opportunity to continue driving LTC SHOP growth through management agreements that align interests to deepen our relationships. In fact, we believe that organic NOI growth will double by the end of this year compared with our pre-transformation to SHOP. in fact we believe that organic noi growth will double by the end of this year compared with our pre-transformation to shop Most importantly, on behalf of the entire LTC team, I want to extend a sincere thank you to the operators who have placed their trust in us, helping us establish and grow our SHOP platform. most importantly on behalf of the entire ltc team i want to extend a sincere thank you to the operators who have placed their trust in us helping us establish and grow our shop platform We have eight SHOP operator relationships in our portfolio, six new to LTC since our launch, and in Q2, we will be adding two more. we have eight shop operator relationships in our portfolio six new to ltc since our launch and in q2 we will be adding two more Each one of these operator relationships represents a huge opportunity to continue driving LTC SHOP growth through management agreements that align interests to deepen our relationships. each one of these operator relationships represents a huge opportunity to continue driving ltc shop growth through management agreements that align interests to deepen our relationships We have a simplified and compelling investment thesis, which we are executing upon speed, determination, and conviction to power future growth by optimizing risk-adjusted returns to our shareholders while increasing our organic and investment growth profile. This success is made possible by a talented group of tenured employees and new professionals recently joining our team, all coalescing around a transforming LTC that is standing out in the industry and is well positioned for tremendous growth. We are ready to take your questions. We have a simplified and compelling investment thesis, which we are executing upon speed, determination, and conviction to power future growth by optimizing risk-adjusted returns to our shareholders while increasing our organic and investment growth profile. we have a simplified and compelling investment thesis which we are executing upon speed determination and conviction to power future growth by optimizing risk-adjusted returns to our shareholders while increasing our organic and investment growth profile This success is made possible by a talented group of tenured employees and new professionals recently joining our team, all coalescing around a transforming LTC that is standing out in the industry and is well positioned for tremendous growth. this success is made possible by a talented group of tenured employees and new professionals recently joining our team all coalescing around a transforming ltc that is standing out in the industry and is well positioned for tremendous growth We are ready to take your questions. we are ready to take your questions

Speaker 10: Thank you. We'll now be conducting a question-and-answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to move your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment, please, while we poll for questions. Our first question today is coming from John Kilichowski from Wells Fargo. Your line is now live. Thank you. thank you We'll now be conducting a question-and-answer session. we'll now be conducting a question-and-answer session If you'd like to be placed in the question queue, please press star one on your telephone keypad. if you'd like to be placed in the question queue please press star one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star two if you'd like to move your question from the queue. you may press star two if you'd like to move your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. for participants using speaker equipment it may be necessary to pick up your handset before pressing star one One moment, please, while we poll for questions. one moment please while we poll for questions Our first question today is coming from John Kilichowski from Wells Fargo. our first question today is coming from john kilichowski from wells fargo Your line is now live. your line is now live

Speaker 6: Hi, good morning. Thanks for taking my question. You know, this pivot is happening relatively quickly, and it sounds like messaging has been, it's not if, but when, you know, something happens to the SNF funding landscape. I'm curious, in your minds, like, what are the nearest one or two greatest threats to SNFs today that could cause some sort of rerating that the market isn't expecting? Hi, good morning. hi good morning Thanks for taking my question. thanks for taking my question You know, this pivot is happening relatively quickly, and it sounds like messaging has been, it's not if, but when, you know, something happens to the SNF funding landscape. you know this pivot is happening relatively quickly and it sounds like messaging has been it's not if but when you know something happens to the snf funding landscape I'm curious, in your minds, like, what are the nearest one or two greatest threats to SNFs today that could cause some sort of rerating that the market isn't expecting? i'm curious in your minds like what are the nearest one or two greatest threats to snfs today that could cause some sort of rerating that the market isn't expecting

Speaker 3: From a SNF perspective, John, I would say. From a SNF perspective, John, I would say. from a snf perspective john i would say

Speaker 6: Correct. Correct. correct

Speaker 3: There's a tremendous amount of private capital, I think, that's driving prices in skilled nursing, so that's one element that could have a change. Just as we've generally seen over the years, I mean, skilled nursing at, you know, cap rates that it has, it has stroke-of-the-pen risk, and things tend to happen when you least expect it. We just see much more organic growth from investing in newer assets with better growth profiles. That's really our thesis and why we're aggressively growing into SHOP. There's a tremendous amount of private capital, I think, that's driving prices in skilled nursing, so that's one element that could have a change. there's a tremendous amount of private capital i think that's driving prices in skilled nursing so that's one element that could have a change Just as we've generally seen over the years, I mean, skilled nursing at, you know, cap rates that it has, it has stroke-of-the-pen risk, and things tend to happen when you least expect it. just as we've generally seen over the years i mean skilled nursing at you know cap rates that it has it has stroke-of-the-pen risk and things tend to happen when you least expect it We just see much more organic growth from investing in newer assets with better growth profiles. we just see much more organic growth from investing in newer assets with better growth profiles That's really our thesis and why we're aggressively growing into SHOP. that's really our thesis and why we're aggressively growing into shop

Speaker 6: Okay. Well, the 14% same-store growth is a great starting point. I'm curious, is this sort of a, like, a 3-4 year run rate as the business remains immune, likely immune to supply shocks and demand is relatively known? Or do you forecast that moderating slightly as occupancy fully stabilizes at these assets? Okay. okay Well, the 14% same-store growth is a great starting point. well the 14% same-store growth is a great starting point I'm curious, is this sort of a, like, a 3-4 year run rate as the business remains immune, likely immune to supply shocks and demand is relatively known? i'm curious is this sort of a like a 3-4 year run rate as the business remains immune likely immune to supply shocks and demand is relatively known Or do you forecast that moderating slightly as occupancy fully stabilizes at these assets? or do you forecast that moderating slightly as occupancy fully stabilizes at these assets

Speaker 5: It's a fair question. Hi, John, this is Gibson. It's a fair question. you know, we're, this is a relatively new portfolio for us, and so, you know, we're comfortable with the guidance. I think the way to think about this is that, you know, that pro forma occupancy that I gave in my prepared remarks, 89.7, that's pretty close to stabilized levels. We're encouraged to see that, you know, this year, our expectations are in that mid-teens, growth rate. We really just don't want to get into the out years right now. It's a fair question. it's a fair question Hi, John, this is Gibson. hi john this is gibson It's a fair question. you know, we're, this is a relatively new portfolio for us, and so, you know, we're comfortable with the guidance. it's a fair question you know we're this is a relatively new portfolio for us and so you know we're comfortable with the guidance I think the way to think about this is that, you know, that pro forma occupancy that I gave in my prepared remarks, 89.7, that's pretty close to stabilized levels. i think the way to think about this is that you know that pro forma occupancy that i gave in my prepared remarks 89.7 that's pretty close to stabilized levels We're encouraged to see that, you know, this year, our expectations are in that mid-teens, growth rate. we're encouraged to see that you know this year our expectations are in that mid-teens growth rate We really just don't want to get into the out years right now. we really just don't want to get into the out years right now

Speaker 6: Thank you. Thank you. thank you

Speaker 10: Thank you. Next question is coming from Austin Wurschmidt from KeyBanc Capital Markets. Your line is now live. Thank you. thank you Next question is coming from Austin Wurschmidt from KeyBanc Capital Markets. next question is coming from austin wurschmidt from keybanc capital markets Your line is now live. your line is now live

Speaker 1: Yeah, just going back to SHOP for a minute. Gibson, you had highlighted that the 13 original assets grew NOI by 22% last year on a, you know, pro forma basis versus 24. Can you give us a sense how the 14% on the 27 assets compares to how that trended in 2025 or just versus the fourth quarter? Yeah, just going back to SHOP for a minute. yeah just going back to shop for a minute Gibson, you had highlighted that the 13 original assets grew NOI by 22% last year on a, you know, pro forma basis versus 24. gibson you had highlighted that the 13 original assets grew noi by 22% last year on a you know pro forma basis versus 24 Can you give us a sense how the 14% on the 27 assets compares to how that trended in 2025 or just versus the fourth quarter? can you give us a sense how the 14% on the 27 assets compares to how that trended in 2025 or just versus the fourth quarter

Speaker 5: I Let me see if I can answer this in another way and see if that, if that scratches your itch, Austin Wurschmidt. If you look at our projections, 25 over 24, and you pull out that original 13, our growth rate of 14% isn't gonna materially change. I Let me see if I can answer this in another way and see if that, if that scratches your itch, Austin Wurschmidt. i let me see if i can answer this in another way and see if that if that scratches your itch austin wurschmidt If you look at our projections, 25 over 24, and you pull out that original 13, our growth rate of 14% isn't gonna materially change. if you look at our projections 25 over 24 and you pull out that original 13 our growth rate of 14% isn't gonna materially change

Speaker 1: That's helpful. Then maybe just going back to John's question a little bit differently here. I mean, you know, you mentioned the 89% is nearing stabilization, but this portfolio does continue to evolve as you know, layer on additional acquisitions. I mean, what are your latest thoughts for the portfolio today as to where stabilized occupancy levels are? You know, what sort of, you know, the right feeling on where you can kind of send out, you know, in place rent increases or drive RevPOR in the coming years? Thanks. That's helpful. that's helpful Then maybe just going back to John's question a little bit differently here. then maybe just going back to john's question a little bit differently here I mean, you know, you mentioned the 89% is nearing stabilization, but this portfolio does continue to evolve as you know, layer on additional acquisitions. i mean you know you mentioned the 89% is nearing stabilization but this portfolio does continue to evolve as you know layer on additional acquisitions I mean, what are your latest thoughts for the portfolio today as to where stabilized occupancy levels are? i mean what are your latest thoughts for the portfolio today as to where stabilized occupancy levels are You know, what sort of, you know, the right feeling on where you can kind of send out, you know, in place rent increases or drive RevPOR in the coming years? you know what sort of you know the right feeling on where you can kind of send out you know in place rent increases or drive revpor in the coming years Thanks. thanks

Speaker 11: This is Pam. You know, for stabilized occupancy, given the lack of supply that we see over the next few years, you know, we feel occupancy can climb into the 90s. We did not project that in our 2026 guidance, but it is possible. And, you know, it's always a fine balance between occupancy and rate growth, and we feel that this portfolio has the opportunity for both. This is Pam. this is pam You know, for stabilized occupancy, given the lack of supply that we see over the next few years, you know, we feel occupancy can climb into the 90s. you know for stabilized occupancy given the lack of supply that we see over the next few years you know we feel occupancy can climb into the 90s We did not project that in our 2026 guidance, but it is possible. we did not project that in our 2026 guidance but it is possible And, you know, it's always a fine balance between occupancy and rate growth, and we feel that this portfolio has the opportunity for both. and you know it's always a fine balance between occupancy and rate growth and we feel that this portfolio has the opportunity for both This also, this is a key of what we're focused on, what we're investing in. It's newer assets, and we've emphasized that in our comments about the average age. We feel those are going to be best positioned to compete against new development. That will happen, and we think in the interim, they'll have pricing power to be able to drive growth. We've done that by design, on intention, looking long term, to have assets that can effectively compete in the future. What was the in-place rent increases to now for this year? This also, this is a key of what we're focused on, what we're investing in. this also this is a key of what we're focused on what we're investing in It's newer assets, and we've emphasized that in our comments about the average age. it's newer assets and we've emphasized that in our comments about the average age We feel those are going to be best positioned to compete against new development. we feel those are going to be best positioned to compete against new development That will happen, and we think in the interim, they'll have pricing power to be able to drive growth. that will happen and we think in the interim they'll have pricing power to be able to drive growth We've done that by design, on intention, looking long term, to have assets that can effectively compete in the future. we've done that by design on intention looking long term to have assets that can effectively compete in the future What was the in-place rent increases to now for this year? what was the in-place rent increases to now for this year

Speaker 5: Well, either the RevPOR guidance we gave is around the 5%. That ranges, you know, across the portfolio from, you know, 4.5 up to 7. But, you know, a lot of the hay is in the barn with respect to year, you know, the year-end increases or increases that went into effect in January. We have some more that increase on anniversary, and then we have to see what happens with the street rate. I think, you know, we're comfortable with our all-in, like, a RevPOR assumption of that 5% range. Well, either the RevPOR guidance we gave is around the 5%. well either the revpor guidance we gave is around the 5% That ranges, you know, across the portfolio from, you know, 4.5 up to 7. that ranges you know across the portfolio from you know 4.5 up to 7 But, you know, a lot of the hay is in the barn with respect to year, you know, the year-end increases or increases that went into effect in January. but you know a lot of the hay is in the barn with respect to year you know the year-end increases or increases that went into effect in january We have some more that increase on anniversary, and then we have to see what happens with the street rate. we have some more that increase on anniversary and then we have to see what happens with the street rate I think, you know, we're comfortable with our all-in, like, a RevPOR assumption of that 5% range. i think you know we're comfortable with our all-in like a revpor assumption of that 5% range

Speaker 1: Very helpful. Thanks, everyone. Very helpful. very helpful Thanks, everyone. thanks everyone

Speaker 5: Thank you. Thank you. thank you

Speaker 10: Thank you. Next question is coming from Juan Sanabria from BMO Capital Markets. Your line is now live. Thank you. thank you Next question is coming from Juan Sanabria from BMO Capital Markets. next question is coming from juan sanabria from bmo capital markets Your line is now live. your line is now live

Speaker 7: Good morning. Just hoping you could talk a little bit about the pipeline of investments and kind of the year one yields you're underwriting for SHOP. On the flip side, how we should be thinking about the disposition yields for some of the SNF that you're selling. You've already given us the loan piece for it, so thank you for that. Good morning. good morning Just hoping you could talk a little bit about the pipeline of investments and kind of the year one yields you're underwriting for SHOP. just hoping you could talk a little bit about the pipeline of investments and kind of the year one yields you're underwriting for shop On the flip side, how we should be thinking about the disposition yields for some of the SNF that you're selling. on the flip side how we should be thinking about the disposition yields for some of the snf that you're selling You've already given us the loan piece for it, so thank you for that. you've already given us the loan piece for it so thank you for that

Speaker 4: Hi, Juan, this is Dave. I'll take the first half, and I think Gibson will take the second half. From a acquisition pipeline perspective, we saw in our remarks that we have $160 million under LOI and in process. We are looking at generally what we looked at last year in terms of sort of going in year one yields, about 7% or so, with good growth headroom beyond that. Hi, Juan, this is Dave. hi juan this is dave I'll take the first half, and I think Gibson will take the second half. i'll take the first half and i think gibson will take the second half From a acquisition pipeline perspective, we saw in our remarks that we have $160 million under LOI and in process. from a acquisition pipeline perspective we saw in our remarks that we have $160 million under loi and in process We are looking at generally what we looked at last year in terms of sort of going in year one yields, about 7% or so, with good growth headroom beyond that. we are looking at generally what we looked at last year in terms of sort of going in year one yields about 7% or so with good growth headroom beyond that Also, Juan, one, you know, one thing to think about on what we're looking at for deals, as Pam mentioned in her prepared remarks, I mean, the size of LTC, really, we're using to our advantage to be able to grow because we can look at, you know, smaller transactions, which have better price points, to be able to drive those initial yields. We think that's a huge opportunity for us as we're growing this portfolio and are projecting on gross book to be at 45% SHOP by the end of the year since we launched this midyear in 2025. Also, Juan, one, you know, one thing to think about on what we're looking at for deals, as Pam mentioned in her prepared remarks, I mean, the size of LTC, really, we're using to our advantage to be able to grow because we can look at, you know, smaller transactions, which have better price points, to be able to drive those initial yields. also juan one you know one thing to think about on what we're looking at for deals as pam mentioned in her prepared remarks i mean the size of ltc really we're using to our advantage to be able to grow because we can look at you know smaller transactions which have better price points to be able to drive those initial yields We think that's a huge opportunity for us as we're growing this portfolio and are projecting on gross book to be at 45% SHOP by the end of the year since we launched this midyear in 2025. we think that's a huge opportunity for us as we're growing this portfolio and are projecting on gross book to be at 45% shop by the end of the year since we launched this midyear in 2025

Speaker 5: Juan, this is Gibson on the dispositions. I think the Prestige loan is a unique case where that, you know, we had a heavy concentration with one operator in one state, you know, that caused some disruption a couple years back because of that state's specific reimbursement program. You know, that was a strategic decision to de-risk the portfolio and reduce operator concentration. We still have investments with Prestige, and it's not a Prestige thing, it's just an overall operator concentration thing. On the rest, if you blend it together, we're selling at about an 8.2 cap. Juan, this is Gibson on the dispositions. juan this is gibson on the dispositions I think the Prestige loan is a unique case where that, you know, we had a heavy concentration with one operator in one state, you know, that caused some disruption a couple years back because of that state's specific reimbursement program. i think the prestige loan is a unique case where that you know we had a heavy concentration with one operator in one state you know that caused some disruption a couple years back because of that state's specific reimbursement program You know, that was a strategic decision to de-risk the portfolio and reduce operator concentration. you know that was a strategic decision to de-risk the portfolio and reduce operator concentration We still have investments with Prestige, and it's not a Prestige thing, it's just an overall operator concentration thing. we still have investments with prestige and it's not a prestige thing it's just an overall operator concentration thing On the rest, if you blend it together, we're selling at about an 8.2 cap. on the rest if you blend it together we're selling at about an 8.2 cap There, if you think about that in terms of, you know, swapping out of older skilled nursing assets, as we've been doing on an opportunistic basis over the last year and a half or so, an 8.2% with anywhere from 2%-2.5% escalators, and we can recycle that into newer seniors housing assets that are really built and will be competitive over the long term. We feel like that's a good risk-reward trade for our shareholders. There, if you think about that in terms of, you know, swapping out of older skilled nursing assets, as we've been doing on an opportunistic basis over the last year and a half or so, an 8.2% with anywhere from 2%-2.5% escalators, and we can recycle that into newer seniors housing assets that are really built and will be competitive over the long term. there if you think about that in terms of you know swapping out of older skilled nursing assets as we've been doing on an opportunistic basis over the last year and a half or so an 8.2% with anywhere from 2%-2.5% escalators and we can recycle that into newer seniors housing assets that are really built and will be competitive over the long term We feel like that's a good risk-reward trade for our shareholders. we feel like that's a good risk-reward trade for our shareholders

Speaker 7: Thanks. Then, I just wanted to ask, ALG, you know, there was previously some discussion about some change in that portfolio going forward and some options they had. Just curious how we should be thinking about piece of your exposure, longer term? Thanks. thanks Then, I just wanted to ask, ALG, you know, there was previously some discussion about some change in that portfolio going forward and some options they had. then i just wanted to ask alg you know there was previously some discussion about some change in that portfolio going forward and some options they had Just curious how we should be thinking about piece of your exposure, longer term? just curious how we should be thinking about piece of your exposure longer term

Speaker 4: I think for ALG, well, I think that, you know, they do have the purchase options we talked previously about. It's really more interest rate sensitive for them to look at probably bond financing to take this out. We look at this probably would be into 2027. We have 3 different to 4 different investments with them. There could be one of the small portfolios could trade maybe towards the end of this year, possibly, but I would really think of it more as a 2027 event. I think for ALG, well, I think that, you know, they do have the purchase options we talked previously about. i think for alg well i think that you know they do have the purchase options we talked previously about It's really more interest rate sensitive for them to look at probably bond financing to take this out. it's really more interest rate sensitive for them to look at probably bond financing to take this out We look at this probably would be into 2027. we look at this probably would be into 2027 We have 3 different to 4 different investments with them. we have 3 different to 4 different investments with them There could be one of the small portfolios could trade maybe towards the end of this year, possibly, but I would really think of it more as a 2027 event. there could be one of the small portfolios could trade maybe towards the end of this year possibly but i would really think of it more as a 2027 event

Speaker 7: All right. If I could just be greedy, one more question. For the incremental financing, like if you hit the top end of your acquisition guidance, how should we think about that? It sounds like you said leverage could go down. I'm not sure if that's a product of EBITDA growing, or if we should assume that maybe the goal would be to over-equitize positions over and above kind of the dispositions you'd laid out or loan repayments. Just curious on the funding for the pipeline at kind of the different, either the midpoint or the high end in particular. Thanks. All right. all right If I could just be greedy, one more question. if i could just be greedy one more question For the incremental financing, like if you hit the top end of your acquisition guidance, how should we think about that? for the incremental financing like if you hit the top end of your acquisition guidance how should we think about that It sounds like you said leverage could go down. it sounds like you said leverage could go down I'm not sure if that's a product of EBITDA growing, or if we should assume that maybe the goal would be to over-equitize positions over and above kind of the dispositions you'd laid out or loan repayments. i'm not sure if that's a product of ebitda growing or if we should assume that maybe the goal would be to over-equitize positions over and above kind of the dispositions you'd laid out or loan repayments Just curious on the funding for the pipeline at kind of the different, either the midpoint or the high end in particular. just curious on the funding for the pipeline at kind of the different either the midpoint or the high end in particular Thanks. thanks

Speaker 11: Thanks, Juan. It's Pam. I think you're thinking about it right. I mean, the beauty of a higher growing portfolio is that your deleveraging happens naturally, a lot faster through EBITDA growth. We would also look to over-equitize acquisitions if the pricing's right. Thanks, Juan. thanks juan It's Pam. it's pam I think you're thinking about it right. i think you're thinking about it right I mean, the beauty of a higher growing portfolio is that your deleveraging happens naturally, a lot faster through EBITDA growth. i mean the beauty of a higher growing portfolio is that your deleveraging happens naturally a lot faster through ebitda growth We would also look to over-equitize acquisitions if the pricing's right. we would also look to over-equitize acquisitions if the pricing's right

Speaker 7: Thank you. Thank you. thank you

Speaker 10: Thank you. As a reminder, that's star one to be placed into question queue. Our next question is coming from Michael Carroll from RBC Capital Markets. Your line is now live. Thank you. thank you As a reminder, that's star one to be placed into question queue. as a reminder that's star one to be placed into question queue Our next question is coming from Michael Carroll from RBC Capital Markets. our next question is coming from michael carroll from rbc capital markets Your line is now live. your line is now live

Speaker 8: Thanks. Clint or Dave, can you guys provide some more color on the competitive landscape for seniors housing deals right now? I mean, how difficult is it for you to find deals that you wanna own, that meets your underwriting? When you do find those transactions, I guess, where have cap rates trended? I know you've been talking about that 7% range for some time. I mean, are we starting to see that tick a little bit lower? Is it hard to find yields at that 7 yield? Thanks. thanks Clint or Dave, can you guys provide some more color on the competitive landscape for seniors housing deals right now? clint or dave can you guys provide some more color on the competitive landscape for seniors housing deals right now I mean, how difficult is it for you to find deals that you wanna own, that meets your underwriting? i mean how difficult is it for you to find deals that you wanna own that meets your underwriting When you do find those transactions, I guess, where have cap rates trended? when you do find those transactions i guess where have cap rates trended I know you've been talking about that 7% range for some time. i know you've been talking about that 7% range for some time I mean, are we starting to see that tick a little bit lower? i mean are we starting to see that tick a little bit lower Is it hard to find yields at that 7 yield? is it hard to find yields at that 7 yield

Speaker 4: This is Dave. Clint, hit on this nicely in terms of the importance of a deal to LTC and how our scale works for us. We do a good job of finding transactions are probably in that onesie, twosie timeframe and our size and our customers or sellers know that they're important to us. One great benefit here. It's been sort of in fashion to have buyer interviews, so I can bring a C-suite, bring my CEOs onto those calls to sort of underscore how important the deal is. As you know, with any seller, certainty of execution matters an awful lot. We can give a transaction a lot of attention and hyperfocus. We've continued to see a pretty good stream of opportunities, and generally in that first year, underwriting of around seven or so. This is Dave. this is dave Clint, hit on this nicely in terms of the importance of a deal to LTC and how our scale works for us. clint hit on this nicely in terms of the importance of a deal to ltc and how our scale works for us We do a good job of finding transactions are probably in that onesie, twosie timeframe and our size and our customers or sellers know that they're important to us. we do a good job of finding transactions are probably in that onesie twosie timeframe and our size and our customers or sellers know that they're important to us One great benefit here. one great benefit here It's been sort of in fashion to have buyer interviews, so I can bring a C-suite, bring my CEOs onto those calls to sort of underscore how important the deal is. it's been sort of in fashion to have buyer interviews so i can bring a c-suite bring my ceos onto those calls to sort of underscore how important the deal is As you know, with any seller, certainty of execution matters an awful lot. as you know with any seller certainty of execution matters an awful lot We can give a transaction a lot of attention and hyperfocus. we can give a transaction a lot of attention and hyperfocus We've continued to see a pretty good stream of opportunities, and generally in that first year, underwriting of around seven or so. we've continued to see a pretty good stream of opportunities and generally in that first year underwriting of around seven or so It doesn't mean that there's not pressure, our whole world is looking at a lot of transactions to find a few that are worthy of underwriting and progressing through the process. We're seeing a good flow of potential opportunities, and we feel good that we'll find the right ones for LTC out of that stream. It doesn't mean that there's not pressure, our whole world is looking at a lot of transactions to find a few that are worthy of underwriting and progressing through the process. it doesn't mean that there's not pressure our whole world is looking at a lot of transactions to find a few that are worthy of underwriting and progressing through the process We're seeing a good flow of potential opportunities, and we feel good that we'll find the right ones for LTC out of that stream. we're seeing a good flow of potential opportunities and we feel good that we'll find the right ones for ltc out of that stream

Speaker 3: With that, with that backdrop, you know, we've guided to $600 million at the midpoint for investments for 2026, and with deals closed under contract, we're almost halfway through that. Although it's a competitive landscape, we feel that we've been able to be at the table on transactions. A lot of the deals that we have, as Dave mentioned previously, are operators bringing us into transactions, which with having soon to have 10 operative relationships in our portfolio, we think that's gonna help drive continued access to deals. When we're looking at them on, you know, onesie, twosie transactions, it can be helpful. With that, with that backdrop, you know, we've guided to $600 million at the midpoint for investments for 2026, and with deals closed under contract, we're almost halfway through that. with that with that backdrop you know we've guided to $600 million at the midpoint for investments for 2026 and with deals closed under contract we're almost halfway through that Although it's a competitive landscape, we feel that we've been able to be at the table on transactions. although it's a competitive landscape we feel that we've been able to be at the table on transactions A lot of the deals that we have, as Dave mentioned previously, are operators bringing us into transactions, which with having soon to have 10 operative relationships in our portfolio, we think that's gonna help drive continued access to deals. a lot of the deals that we have as dave mentioned previously are operators bringing us into transactions which with having soon to have 10 operative relationships in our portfolio we think that's gonna help drive continued access to deals When we're looking at them on, you know, onesie, twosie transactions, it can be helpful. when we're looking at them on you know onesie twosie transactions it can be helpful Another thing that we're seeing also, on one of the transactions we're working on is, the seller is looking at a tax-efficient transaction, we're looking at a DownREIT structure. When you look at financing transactions and utilizing equity pricing through a DownREIT structure, it can be an attractive option for us. Another thing that we're seeing also, on one of the transactions we're working on is, the seller is looking at a tax-efficient transaction, we're looking at a DownREIT structure. another thing that we're seeing also on one of the transactions we're working on is the seller is looking at a tax-efficient transaction we're looking at a downreit structure When you look at financing transactions and utilizing equity pricing through a DownREIT structure, it can be an attractive option for us. when you look at financing transactions and utilizing equity pricing through a downreit structure it can be an attractive option for us

Speaker 8: In this type of environment, if you look at the 7 yields, I mean, do you foresee, like, if you kind of get back to the end of this year, that you might have to go below that? Is there enough transactions at that level that you think at least through this year, you can still achieve that 7% target? In this type of environment, if you look at the 7 yields, I mean, do you foresee, like, if you kind of get back to the end of this year, that you might have to go below that? in this type of environment if you look at the 7 yields i mean do you foresee like if you kind of get back to the end of this year that you might have to go below that Is there enough transactions at that level that you think at least through this year, you can still achieve that 7% target? is there enough transactions at that level that you think at least through this year you can still achieve that 7% target

Speaker 4: As Clint mentioned, right, we have $270 in the door, right? Those are set. We've got another $300 million to go. Nothing's easy if you're gonna do it well, so we'll be working hard to find the right deals all year long. We are steadfast in working to maintain that kind of year-one yield of seven. Ed, definitely there will be pressure in the industry. A lot of people are discovering senior housing or people showing up at the table. We still feel like we've got a good opportunity, kind of, given our relationship focus and our style of execution, to find the deals that make sense for LTC. As Clint mentioned, right, we have $270 in the door, right? as clint mentioned right we have $270 in the door right Those are set. those are set We've got another $300 million to go. we've got another $300 million to go Nothing's easy if you're gonna do it well, so we'll be working hard to find the right deals all year long. nothing's easy if you're gonna do it well so we'll be working hard to find the right deals all year long We are steadfast in working to maintain that kind of year-one yield of seven. we are steadfast in working to maintain that kind of year-one yield of seven Ed, definitely there will be pressure in the industry. ed definitely there will be pressure in the industry A lot of people are discovering senior housing or people showing up at the table. a lot of people are discovering senior housing or people showing up at the table We still feel like we've got a good opportunity, kind of, given our relationship focus and our style of execution, to find the deals that make sense for LTC. we still feel like we've got a good opportunity kind of given our relationship focus and our style of execution to find the deals that make sense for ltc

Speaker 11: Mike, I have one more thing to add to that. You know, last year, when we talked about our projected underwriting, and being at 7, very conservative, our 2026 guidance is already a year 1 over 7.5%. It's like 7.7%. We're already beating that. We've created value there just in a few, you know, short months, and expect to create more. Mike, I have one more thing to add to that. mike i have one more thing to add to that You know, last year, when we talked about our projected underwriting, and being at 7, very conservative, our 2026 guidance is already a year 1 over 7.5%. you know last year when we talked about our projected underwriting and being at 7 very conservative our 2026 guidance is already a year 1 over 7.5% It's like 7.7%. it's like 7.7% We're already beating that. we're already beating that We've created value there just in a few, you know, short months, and expect to create more. we've created value there just in a few you know short months and expect to create more

Speaker 8: Okay, great. No, that's helpful. Just last for me, related to Prestige on the remaining loans that LTC is holding, after they potentially pay them off in July or half of them, I mean, is there a desire to have them pay off those loans, too, or should we think about that as a longer-term hold that LTC plans to continue to maintain? Okay, great. okay great No, that's helpful. no that's helpful Just last for me, related to Prestige on the remaining loans that LTC is holding, after they potentially pay them off in July or half of them, I mean, is there a desire to have them pay off those loans, too, or should we think about that as a longer-term hold that LTC plans to continue to maintain? just last for me related to prestige on the remaining loans that ltc is holding after they potentially pay them off in july or half of them i mean is there a desire to have them pay off those loans too or should we think about that as a longer-term hold that ltc plans to continue to maintain

Speaker 13: You should think of it as a long-term hold. You know, right now, we, after the payoff of $180 million, we'll have $90 million remaining with them. They will be reducing concentration, as Gibson spoke about, and they will probably fall outside of our top five operator relationships. You should think of it as a long-term hold. you should think of it as a long-term hold You know, right now, we, after the payoff of $180 million, we'll have $90 million remaining with them. you know right now we after the payoff of $180 million we'll have $90 million remaining with them They will be reducing concentration, as Gibson spoke about, and they will probably fall outside of our top five operator relationships. they will be reducing concentration as gibson spoke about and they will probably fall outside of our top five operator relationships

Speaker 11: They don't have an option to prepay those. They don't have an option to prepay those. they don't have an option to prepay those

Speaker 8: Okay, great. Thank you. Okay, great. okay great Thank you. thank you

Speaker 10: Thank you. Next question is coming from Richard Anderson from Cantor Fitzgerald. Your line is now live. Thank you. thank you Next question is coming from Richard Anderson from Cantor Fitzgerald. next question is coming from richard anderson from cantor fitzgerald your Your line is now live. your line is now live

Speaker 12: Thanks, good morning. I just wanna make this sort of crystal clear. Is your expectation on a go-forward basis, 2027 and beyond, for your SHOP business to be producing, you know, sort of low, mid-teens type of same-store NOI growth? Is that the target you're going after, or is it something lower than that? Thanks, good morning. thanks good morning I just wanna make this sort of crystal clear. i just wanna make this sort of crystal clear Is your expectation on a go-forward basis, 2027 and beyond, for your SHOP business to be producing, you know, sort of low, mid-teens type of same-store NOI growth? is your expectation on a go-forward basis 2027 and beyond for your shop business to be producing you know sort of low mid-teens type of same-store noi growth Is that the target you're going after, or is it something lower than that? is that the target you're going after or is it something lower than that

Speaker 5: We're gonna see how this year plays out. We're excited about what we're seeing as we go into this year and as we get into later in the year, Rich, we'll update that. I mean, I think going in a few calls ago, you know, we said that we were going in at 7 and targeted low teens IRRs. That, you know, that's basically telling you, we expect mid-single-digit growth over the long term. I think as we work through the process, you know, we just acquired a lot of this, getting to really understand the portfolio. We're excited, and as Pam mentioned, in our projections, we're assuming higher yields on this initial purchase price than we did at acquisition. We're gonna see how this year plays out. we're gonna see how this year plays out We're excited about what we're seeing as we go into this year and as we get into later in the year, Rich, we'll update that. we're excited about what we're seeing as we go into this year and as we get into later in the year rich we'll update that I mean, I think going in a few calls ago, you know, we said that we were going in at 7 and targeted low teens IRRs. i mean i think going in a few calls ago you know we said that we were going in at 7 and targeted low teens irrs That, you know, that's basically telling you, we expect mid-single-digit growth over the long term. that you know that's basically telling you we expect mid-single-digit growth over the long term I think as we work through the process, you know, we just acquired a lot of this, getting to really understand the portfolio. i think as we work through the process you know we just acquired a lot of this getting to really understand the portfolio We're excited, and as Pam mentioned, in our projections, we're assuming higher yields on this initial purchase price than we did at acquisition. we're excited and as pam mentioned in our projections we're assuming higher yields on this initial purchase price than we did at acquisition I think we're excited about the opportunity in 2026, and we hope that continues on, but we'll update you as we get to the end of the year or. I think we're excited about the opportunity in 2026, and we hope that continues on, but we'll update you as we get to the end of the year or. i think we're excited about the opportunity in 2026 and we hope that continues on but we'll update you as we get to the end of the year or Yeah, the twenty- Yeah, the twenty- yeah the twenty-

Speaker 3: Throughout the year. Throughout the year. throughout the year

Speaker 12: The 22% NOI and the 13%, that's really apples to oranges from a previous net lease structure, correct? Just so I understand that correctly. The 22% NOI and the 13%, that's really apples to oranges from a previous net lease structure, correct? the 22% noi and the 13% that's really apples to oranges from a previous net lease structure correct Just so I understand that correctly. just so i understand that correctly

Speaker 3: Yeah, that's fair. Yes. Yeah, that's fair. yeah that's fair Yes. yes

Speaker 5: That was intended just to give visibility into regard to what we had under a rent structure and what we had just for comparable metrics, what it looked like under SHOP. That was why we broke that out separate. That was intended just to give visibility into regard to what we had under a rent structure and what we had just for comparable metrics, what it looked like under SHOP. that was intended just to give visibility into regard to what we had under a rent structure and what we had just for comparable metrics what it looked like under shop That was why we broke that out separate. that was why we broke that out separate

Speaker 3: That's right. That's right. that's right

Speaker 12: Understood. Understood. understood

Speaker 5: Sorry, go ahead. Sorry, go ahead. sorry go ahead

Speaker 12: Go ahead. No, you're good. Go ahead. go ahead No, you're good. no you're good

Speaker 5: I was just gonna say, yeah, but I mean, that was, you know, we were in the structure, able to capture the upside in those properties. I was just gonna say, yeah, but I mean, that was, you know, we were in the structure, able to capture the upside in those properties. i was just gonna say yeah but i mean that was you know we were in the structure able to capture the upside in those properties ...you know, that was something strategically, as we thought about entering RIDEA, really started talking about seriously 18 months ago, how to go about doing that. You know, we're just really excited that we're able to do that and be able to capture the upside, and do so in a way that aligns our interests with our operators, you know, to incentivize them to drive performance. Yeah, your comment that we're comparing that increase in NOI or the triple net structure is fair. I will say that, you know, as we did that, we were able to capture the upside, because the coverage on that Anthem portfolio was pretty close to where the rents we were collecting. ...you know, that was something strategically, as we thought about entering RIDEA, really started talking about seriously 18 months ago, how to go about doing that. ...you know that was something strategically as we thought about entering ridea really started talking about seriously 18 months ago how to go about doing that You know, we're just really excited that we're able to do that and be able to capture the upside, and do so in a way that aligns our interests with our operators, you know, to incentivize them to drive performance. you know we're just really excited that we're able to do that and be able to capture the upside and do so in a way that aligns our interests with our operators you know to incentivize them to drive performance Yeah, your comment that we're comparing that increase in NOI or the triple net structure is fair. yeah your comment that we're comparing that increase in noi or the triple net structure is fair I will say that, you know, as we did that, we were able to capture the upside, because the coverage on that Anthem portfolio was pretty close to where the rents we were collecting. i will say that you know as we did that we were able to capture the upside because the coverage on that anthem portfolio was pretty close to where the rents we were collecting

Speaker 12: Right. Understood. Got that. Okay, in terms of the CapEx, I see your guidance is, $0.10, a little less than $5 million a year on whatever you own, you know, average, you know, weighted average-wise for the year. I don't know, $5 million just feels low to me, for a billion-dollar portfolio. Is that a, is that a function of its age? You know, I wonder, you know, what you think the CapEx burden might be for LTC going forward when you're kind of fully built out and, you know, $1 billion or so of assets? Right. right Understood. understood Got that. got that Okay, in terms of the CapEx, I see your guidance is, $0.10, a little less than $5 million a year on whatever you own, you know, average, you know, weighted average-wise for the year. okay in terms of the capex i see your guidance is $0.10 a little less than $5 million a year on whatever you own you know average you know weighted average-wise for the year I don't know, $5 million just feels low to me, for a billion-dollar portfolio. i don't know $5 million just feels low to me for a billion-dollar portfolio Is that a, is that a function of its age? is that a is that a function of its age You know, I wonder, you know, what you think the CapEx burden might be for LTC going forward when you're kind of fully built out and, you know, $1 billion or so of assets? you know i wonder you know what you think the capex burden might be for ltc going forward when you're kind of fully built out and you know $1 billion or so of assets

Speaker 5: Yeah, that's a fair question. I guess I'll answer it this way: we've assumed basically about $1,500 a unit. For the portfolio that we currently have, the 30 properties, you know, we did go through those recurring CapEx budgets, and we feel pretty comfortable with those given the age of the assets. We didn't feel like we were really stretching or deferring anything and going, and felt like that was what was requisite to keep the buildings competitive. We'll have to see how that evolves. I'll say the overall number includes, you know, assumption, kind of a weighted average, so that $1,500 a unit for acquisitions going forward. Yeah, that's a fair question. yeah that's a fair question I guess I'll answer it this way: we've assumed basically about $1,500 a unit. i guess i'll answer it this way we've assumed basically about $1,500 a unit For the portfolio that we currently have, the 30 properties, you know, we did go through those recurring CapEx budgets, and we feel pretty comfortable with those given the age of the assets. for the portfolio that we currently have the 30 properties you know we did go through those recurring capex budgets and we feel pretty comfortable with those given the age of the assets We didn't feel like we were really stretching or deferring anything and going, and felt like that was what was requisite to keep the buildings competitive. we didn't feel like we were really stretching or deferring anything and going and felt like that was what was requisite to keep the buildings competitive We'll have to see how that evolves. we'll have to see how that evolves I'll say the overall number includes, you know, assumption, kind of a weighted average, so that $1,500 a unit for acquisitions going forward. i'll say the overall number includes you know assumption kind of a weighted average so that $1,500 a unit for acquisitions going forward

Speaker 11: I don't think you can compare our CapEx budget to our peers just because the makeup of our SHOP portfolio is so different. I mean, with an average age of nine years, that's really young, really new buildings that don't have a lot of CapEx requirements. I don't think you can compare our CapEx budget to our peers just because the makeup of our SHOP portfolio is so different. i don't think you can compare our capex budget to our peers just because the makeup of our shop portfolio is so different I mean, with an average age of nine years, that's really young, really new buildings that don't have a lot of CapEx requirements. i mean with an average age of nine years that's really young really new buildings that don't have a lot of capex requirements

Speaker 12: Right. Right. right

Speaker 3: That, again, that was strategic on our part, because as we were introducing this portfolio, you know, to simplify the integration of this and have assets that can compete against potential new development, I mean, we do see that over time, that will increase. That, again, that was strategic on our part, because as we were introducing this portfolio, you know, to simplify the integration of this and have assets that can compete against potential new development, I mean, we do see that over time, that will increase. that again that was strategic on our part because as we were introducing this portfolio you know to simplify the integration of this and have assets that can compete against potential new development i mean we do see that over time that will increase

Speaker 12: Yeah. Yeah. yeah

Speaker 3: For the interim and short-term period, that's why you're seeing a lower spend. For the interim and short-term period, that's why you're seeing a lower spend. for the interim and short-term period that's why you're seeing a lower spend

Speaker 12: Yep. Okay. Yeah, I was gonna say, young does become old, unfortunately, over time. Yep. yep Okay. okay Yeah, I was gonna say, young does become old, unfortunately, over time. yeah i was gonna say young does become old unfortunately over time

Speaker 3: We'll see. We'll see. we'll see

Speaker 11: We all age, Rich. We all age. We all age, Rich. we all age rich We all age. we all age

Speaker 5: Rich, I will say, as we work through the budgets, we're not deferring things, so we're not targeting a number. We're committed to invest in the portfolio to keep it competitive. If that number drifts up to drive NOI growth, that's what we'll do. We did try to look at this from a holistic perspective, and we certainly weren't looking to trim number out of those maintenance CapEx budgets going forward. Rich, I will say, as we work through the budgets, we're not deferring things, so we're not targeting a number. rich i will say as we work through the budgets we're not deferring things so we're not targeting a number We're committed to invest in the portfolio to keep it competitive. we're committed to invest in the portfolio to keep it competitive If that number drifts up to drive NOI growth, that's what we'll do. if that number drifts up to drive noi growth that's what we'll do We did try to look at this from a holistic perspective, and we certainly weren't looking to trim number out of those maintenance CapEx budgets going forward. we did try to look at this from a holistic perspective and we certainly weren't looking to trim number out of those maintenance capex budgets going forward

Speaker 12: Last for me. You call yourself done at the end of 2026 with this transformation, 45%, essentially, SHOP. Is that your version of the efficient frontier, or will you expect this SHOP exposure to sort of trickle up from that point forward? Or is like a 50% exposure to SHOP sort of your kind of your sweet spot? Thanks. Last for me. last for me You call yourself done at the end of 2026 with this transformation, 45%, essentially, SHOP. you call yourself done at the end of 2026 with this transformation 45% essentially shop Is that your version of the efficient frontier, or will you expect this SHOP exposure to sort of trickle up from that point forward? is that your version of the efficient frontier or will you expect this shop exposure to sort of trickle up from that point forward Or is like a 50% exposure to SHOP sort of your kind of your sweet spot? or is like a 50% exposure to shop sort of your kind of your sweet spot Thanks. thanks

Speaker 11: No, we don't have a target on it, Rich. It really, you know, transformation versus evolution. I mean, transformation, this is something that we've done quickly, and to Clint's. No, we don't have a target on it, Rich. no we don't have a target on it rich It really, you know, transformation versus evolution. it really you know transformation versus evolution I mean, transformation, this is something that we've done quickly, and to Clint's. i mean transformation this is something that we've done quickly and to clint's

Speaker 12: Yeah Yeah yeah

Speaker 11: ... you know, prepared remark point, 18 months. That's really, really fast to change the complexion of a company. After this year, it's an evolution. We will continue to invest where we see the best return for our shareholders, which in our crystal ball, looks like it will continue to be SHOP. But if it's not, we'll pivot to the investment that, you know, drives shareholder value the best. But for right now, it'll be an evolution more towards SHOP than a transformation after this year. ... you know, prepared remark point, 18 months. you know prepared remark point 18 months That's really, really fast to change the complexion of a company. that's really really fast to change the complexion of a company After this year, it's an evolution. after this year it's an evolution We will continue to invest where we see the best return for our shareholders, which in our crystal ball, looks like it will continue to be SHOP. we will continue to invest where we see the best return for our shareholders which in our crystal ball looks like it will continue to be shop But if it's not, we'll pivot to the investment that, you know, drives shareholder value the best. but if it's not we'll pivot to the investment that you know drives shareholder value the best But for right now, it'll be an evolution more towards SHOP than a transformation after this year. but for right now it'll be an evolution more towards shop than a transformation after this year

Speaker 12: Understood. Thanks very much, everyone. Understood. understood Thanks very much, everyone. thanks very much everyone

Speaker 10: Thank you. Next question is coming from Omotayo Okusanya from Deutsche Bank, your line is now live. Thank you. thank you Next question is coming from Omotayo Okusanya from Deutsche Bank, your line is now live. next question is coming from omotayo okusanya from deutsche bank your line is now live

Speaker 9: Hey, guys, thanks for giving me time. Given the RevPOR export spread you guys saw in the quarter, how confident are you that the SHOP portfolio can deliver the growth you're guiding to? Can you walk us through kind of the key operational levers that you kind of are relying on to get you guys there? Hey, guys, thanks for giving me time. hey guys thanks for giving me time Given the RevPOR export spread you guys saw in the quarter, how confident are you that the SHOP portfolio can deliver the growth you're guiding to? given the revpor export spread you guys saw in the quarter how confident are you that the shop portfolio can deliver the growth you're guiding to Can you walk us through kind of the key operational levers that you kind of are relying on to get you guys there? can you walk us through kind of the key operational levers that you kind of are relying on to get you guys there

Speaker 5: I think the key levers are laid out there in the supplemental on our guidance page. I think that if you zoom out and with occupancy growth, you know, our export expectations are just slightly below what people would expect for inflation. I don't think that that's a particularly aggressive assumption. You know, I think some may point to the top-line occupancy growth of 150 basis points is maybe a little conservative. We're really trying to, you know, it's a 30-property portfolio, the 27 that we guided to, which the 27 being 13 we converted and then everything that we've acquired since. Everything's kind of at or near stabilization. I think the key levers are laid out there in the supplemental on our guidance page. i think the key levers are laid out there in the supplemental on our guidance page I think that if you zoom out and with occupancy growth, you know, our export expectations are just slightly below what people would expect for inflation. i think that if you zoom out and with occupancy growth you know our export expectations are just slightly below what people would expect for inflation I don't think that that's a particularly aggressive assumption. i don't think that that's a particularly aggressive assumption You know, I think some may point to the top-line occupancy growth of 150 basis points is maybe a little conservative. you know i think some may point to the top-line occupancy growth of 150 basis points is maybe a little conservative We're really trying to, you know, it's a 30-property portfolio, the 27 that we guided to, which the 27 being 13 we converted and then everything that we've acquired since. we're really trying to you know it's a 30-property portfolio the 27 that we guided to which the 27 being 13 we converted and then everything that we've acquired since Everything's kind of at or near stabilization. everything's kind of at or near stabilization You know, it's really hard to, with a portfolio that size, really zoom in more than the detail that we've given you on the, on the operational levers. I mean, we feel like that's appropriate. You know, just with 29 or sorry, with 27 properties, you're gonna have more variance than you would in a 500-property portfolio. You know, I think, again, we feel good about the RevPOR assumptions going forward. We think it's achievable. We don't think it's a layup.... export, same thing. We, you know, we try to put the Goldilocks level of guidance out there, you know, that stretches our operators but is achievable. You know, it's really hard to, with a portfolio that size, really zoom in more than the detail that we've given you on the, on the operational levers. you know it's really hard to with a portfolio that size really zoom in more than the detail that we've given you on the on the operational levers I mean, we feel like that's appropriate. i mean we feel like that's appropriate You know, just with 29 or sorry, with 27 properties, you're gonna have more variance than you would in a 500-property portfolio. you know just with 29 or sorry with 27 properties you're gonna have more variance than you would in a 500-property portfolio You know, I think, again, we feel good about the RevPOR assumptions going forward. you know i think again we feel good about the revpor assumptions going forward We think it's achievable. we think it's achievable We don't think it's a layup.... export, same thing. we don't think it's a layup export same thing We, you know, we try to put the Goldilocks level of guidance out there, you know, that stretches our operators but is achievable. we you know we try to put the goldilocks level of guidance out there you know that stretches our operators but is achievable

Speaker 9: Right. That makes sense. I guess, the second question I have is, I know you guys have talked about, and we all know, like, you know, supply hasn't really been an issue, but has anything around that changed at all? Right. right That makes sense. that makes sense I guess, the second question I have is, I know you guys have talked about, and we all know, like, you know, supply hasn't really been an issue, but has anything around that changed at all? i guess the second question i have is i know you guys have talked about and we all know like you know supply hasn't really been an issue but has anything around that changed at all

Speaker 3: I would say not really supply. No, we haven't seen... What you do see, though, more is that operators that have a track record in development are talking more about gearing up for development. I think that's where you're hearing more talk. It's not so much shovels in the ground. It's more of they see that there's going to be a need for supply in the future, and they have experience doing it, and they're trying to prepare to be, to participate in that when the time does come. I would say not really supply. i would say not really supply No, we haven't seen... no we haven't seen What you do see, though, more is that operators that have a track record in development are talking more about gearing up for development. what you do see though more is that operators that have a track record in development are talking more about gearing up for development I think that's where you're hearing more talk. i think that's where you're hearing more talk It's not so much shovels in the ground. it's not so much shovels in the ground It's more of they see that there's going to be a need for supply in the future, and they have experience doing it, and they're trying to prepare to be, to participate in that when the time does come. it's more of they see that there's going to be a need for supply in the future and they have experience doing it and they're trying to prepare to be to participate in that when the time does come

Speaker 5: I think what specifically within our SHOP portfolio, construction activity is very light. You know, there may be one under construction, one under consideration, you know, and some expansions here and there around the edges, but it's very light. I think what specifically within our SHOP portfolio, construction activity is very light. i think what specifically within our shop portfolio construction activity is very light You know, there may be one under construction, one under consideration, you know, and some expansions here and there around the edges, but it's very light. you know there may be one under construction one under consideration you know and some expansions here and there around the edges but it's very light

Speaker 9: Makes sense. I appreciate the time, guys. Makes sense. makes sense I appreciate the time, guys. i appreciate the time guys

Speaker 10: Thank you. We've reached the end of our question and answer session. Before I turn the call back to management, please note that today's comments, including the question and answer session, may have included forward-looking statements subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in the LTC Properties filings with the Securities and Exchange Commission from time to time, including the company's most recent Form 10-K, dated December 31st, 2025. LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. I'd now like to turn the floor back over to management for any further closing comments. Thank you. thank you We've reached the end of our question and answer session. we've reached the end of our question and answer session Before I turn the call back to management, please note that today's comments, including the question and answer session, may have included forward-looking statements subject to risks and uncertainties that may cause actual results and events to differ materially. before i turn the call back to management please note that today's comments including the question and answer session may have included forward-looking statements subject to risks and uncertainties that may cause actual results and events to differ materially These risks and uncertainties are detailed in the LTC Properties filings with the Securities and Exchange Commission from time to time, including the company's most recent Form 10-K, dated December 31st, 2025. these risks and uncertainties are detailed in the ltc properties filings with the securities and exchange commission from time to time including the company's most recent form 10-k dated december 31st 2025 LTC undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. ltc undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation I'd now like to turn the floor back over to management for any further closing comments. i'd now like to turn the floor back over to management for any further closing comments

Speaker 11: Thank you, operator, and thanks to everyone for your thoughtful questions. We appreciate your continued interest, and we look forward to updating you on our progress next quarter. Thank you, operator, and thanks to everyone for your thoughtful questions. thank you operator and thanks to everyone for your thoughtful questions We appreciate your continued interest, and we look forward to updating you on our progress next quarter. we appreciate your continued interest and we look forward to updating you on our progress next quarter

Speaker 10: Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today. Thank you. thank you That does conclude today's teleconference and webcast. that does conclude today's teleconference and webcast You may disconnect your lines at this time, and have a wonderful day. you may disconnect your lines at this time and have a wonderful day We thank you for your participation today. we thank you for your participation today