LTC Announces Operating Results for the Three and Six Months Ended June 30, 2008

WESTLAKE VILLAGE, Calif.--(Business Wire)--
LTC Properties, Inc. (NYSE:LTC) released results of operations for
the three and six months ended June 30, 2008 and announced that net
income available to common stockholders for the second quarter was
$7.5 million or $0.33 per diluted share. For the same period in 2007,
net income available to common stockholders was $8.6 million or $0.36
per diluted share. Net income from continuing operations net of
preferred stock dividends was $7.5 million or $0.33 per diluted share
for the three months ended June 30, 2008 as compared to $8.6 million
or $0.36 per diluted share during the same period last year. Revenues
for the three months ended June 30, 2008, were $17.9 million versus
$19.8 million for the same period last year.

The Company announced that during the second quarter of 2008 it
invested approximately $6.8 million in a mortgage loan secured by six
assisted living properties specializing in dementia care with a total
of 108 units located in Texas. This loan has an initial interest rate
of 9.5% and matures in June 2018.

For the six months ended June 30, 2008, net income available to
common stockholders was $15.8 million or $0.69 per diluted share. For
the same period in 2007, net income available to common stockholders
was $16.8 million or $0.71 per diluted share. Net income from
continuing operations net of preferred stock buyback and preferred
stock dividends was $15.7 million or $0.68 per diluted share during
the six months ended June 30, 2008 as compared to $16.6 million or
$0.70 per diluted share during the same period last year. Revenues for
the six months ended June 30, 2008, were $35.7 million versus $38.5
million for the same period last year.

The Company has scheduled a conference call on Friday, August 1,
2008, beginning at 12:00 p.m. Pacific time, in order to comment on the
Company's performance and operating results for the three and six
months ended June 30, 2008. The conference call is accessible by
dialing 888-241-0558. The international number is 647-427-3417. The
earnings release and any additional financial information that may be
discussed on the conference call will also be available on our
website. An audio replay of the conference call will be available from
August 1, 2008 through August 15, 2008. Callers can access the replay
by dialing 800-695-9459 or 402-220-0609 and entering encore passcode
number 53254403.

At June 30, 2008, LTC had investments in 106 skilled nursing
properties, 101 assisted living properties and two schools. These
properties are located in 29 states. The Company is a
self-administered real estate investment trust that primarily invests
in long-term care and other health care related facilities through
mortgage loans, facility lease transactions and other investments. For
more information on LTC Properties, Inc., visit the Company's website
at www.ltcproperties.com.

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

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

Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2008 2007 2008 2007
--------- -------- -------- --------
Revenues:
Rental income $ 14,625 $14,430 $29,259 $28,815
Interest income from mortgage
loans 2,577 3,785 5,235 7,254
Interest and other income 649 1,578 1,204 2,453
--------- -------- -------- --------
Total revenues 17,851 19,793 35,698 38,522
--------- -------- -------- --------

Expenses:
Interest expense 1,085 1,235 2,261 2,483
Depreciation and amortization 3,730 3,562 7,422 7,090
Legal expenses 73 116 98 145
Operating and other expenses 1,509 1,938 3,320 3,527
--------- -------- -------- --------
Total expenses 6,397 6,851 13,101 13,245
--------- -------- -------- --------
Income before non-operating
income and minority interest 11,454 12,942 22,597 25,277

Minority interest 77 86 154 172
--------- -------- -------- --------
Income from continuing operations 11,377 12,856 22,443 25,105
Discontinued operations:
Loss from discontinued
operations -- (13) -- (26)
Gain on sale of assets, net -- -- 92 149
--------- -------- -------- --------
Net (loss) income from
discontinued operations -- (13) 92 123
--------- -------- -------- --------
Net income 11,377 12,843 22,535 25,228
Preferred stock buyback -- -- 989 --
Preferred stock dividends (3,847) (4,234) (7,705) (8,473)
--------- -------- -------- --------
Net income available to common
stockholders $ 7,530 $ 8,609 $15,819 $16,755
========= ======== ======== ========

Net Income per Common Share from
Continuing Operations net of
Preferred Stock Buyback and
Preferred Stock Dividends:
Basic $ 0.33 $ 0.37 $ 0.69 $ 0.71
========= ======== ======== ========
Diluted $ 0.33 $ 0.36 $ 0.68 $ 0.70
========= ======== ======== ========
Net Income per Common Share from
Discontinued Operations:
Basic $ -- $ -- $ -- $ 0.01
========= ======== ======== ========
Diluted $ -- $ -- $ -- $ 0.01
========= ======== ======== ========
Net Income per Common Share
Available to Common
Stockholders:
Basic $ 0.33 $ 0.37 $ 0.69 $ 0.71
========= ======== ======== ========
Diluted $ 0.33 $ 0.36 $ 0.69 $ 0.71
========= ======== ======== ========

Basic weighted average shares
outstanding 22,969 23,529 22,916 23,505
========= ======== ======== ========

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

FFO is a useful supplemental measure of our operating performance
that is not defined by accounting principles generally accepted in the
United States. Historical cost accounting for real estate assets in
accordance with US GAAP implicitly assumes that the value of real
estate assets diminishes predictably over time as evidenced by the
provision for depreciation. However, since real estate values have
historically risen or fallen with market conditions, many industry
investors and analysts have considered presentation of operating
results for real estate companies that use historical cost accounting
to be insufficient. In response, National Association of Real Estate
Investment Trusts (or NAREIT) created FFO as a supplemental measure of
operating performance for REITs that exclude historical cost
depreciation from net income. We define FFO as net income available to
common stockholders adjusted to exclude the gains or losses on the
sale of assets and adjusted to add back impairment charges, real
estate depreciation and other non-cash charges. Other REITs may not
use this definition of FFO and therefore, caution should be exercised
when comparing our company's FFO to that of other REITs. FFO is used
in the REIT industry as a supplemental measure of operating
performance, but is not a substitute for net income per share
available to common stockholders determined in accordance with
accounting principles generally accepted in the United States.

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

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Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2008 2007 2008 2007
--------- -------- -------- --------

Net income available to common
stockholders $ 7,530 $ 8,609 $15,819 $16,755
Add: Real estate depreciation 3,730 3,575 7,422 7,116
Add: Non-cash compensation
charges 306 635 617 979
Less (gain)/add loss on sale of
assets, net -- -- (92) (149)
--------- -------- -------- --------
FFO available to common
stockholders $ 11,566 $12,819 $23,766 $24,701
========= ======== ======== ========

Less: Non-cash compensation
charges (306) (635) (617) (979)
--------- -------- -------- --------
FFO including preferred stock
buyback and non-cash
compensation charges $ 11,260 $12,184 $23,149 $23,722
========= ======== ======== ========

Basic FFO available to common
stockholders per share $ 0.50 $ 0.55 $ 1.04 $ 1.05
========= ======== ======== ========
Diluted FFO available to common
stockholders per share $ 0.49 $ 0.53 $ 1.01 $ 1.02
========= ======== ======== ========

Basic FFO including preferred
stock buyback and non-cash
compensation charges per share $ 0.49 $ 0.52 $ 1.01 $ 1.01
========= ======== ======== ========
Diluted FFO including preferred
stock buyback and non-cash
compensation charges per share $ 0.48 $ 0.50 $ 0.99 $ 0.98
========= ======== ======== ========
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LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)

June 30, 2008 December 31, 2007
------------- -----------------
(unaudited)
ASSETS
Real Estate Investments:
Buildings and improvements, net of
accumulated depreciation and
amortization: 2008 -- $123,045;
2007 -- $115,766 $ 338,430 $ 342,222
Land 34,639 34,429
Properties held for sale, net of
accumulated depreciation and
amortization: 2008 -- $0; 2007 --
$0 -- 463
Mortgage loans receivable, net of
allowance for doubtful accounts:
2008 -- $880; 2007 -- $890 90,160 91,278
------------- -----------------
Real estate investments, net 463,229 468,392
Other Assets:
Cash and cash equivalents 13,909 42,631
Debt issue costs, net 188 326
Interest receivable 2,366 2,553
Prepaid expenses and other assets 21,725 20,447
Notes receivable 3,337 3,292
Marketable securities 6,466 6,464
------------- -----------------
Total Assets $ 511,220 $ 544,105
============= =================

LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $ -- $ --
Mortgage loans payable 32,432 47,165
Bonds payable 4,690 5,130
Accrued interest 257 349
Accrued expenses and other liabilities 5,406 5,381
Distributions payable 3,030 3,406
------------- -----------------
Total Liabilities 45,815 61,431

Minority interest 3,134 3,518
Stockholders' equity:
Preferred stock $0.01 par value;
15,000 shares authorized; shares
issued and outstanding: 2008 --
8,056; 2007 -- 8,802 189,901 208,553
Common stock: $0.01 par value; 45,000
shares authorized; shares issued and
outstanding: 2008 -- 23,091; 2007 --
22,872 231 229
Capital in excess of par value 320,611 316,609
Cumulative net income 513,123 490,588
Other 876 956
Cumulative distributions (562,471) (537,779)
------------- -----------------
Total Stockholders' Equity 462,271 479,156
------------- -----------------
Total Liabilities and
Stockholders' Equity $ 511,220 $ 544,105
============= =================
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LTC Properties, Inc.
Wendy L. Simpson, CEO & President
Pam Kessler, SVP & CFO
805-981-8655

Copyright Business Wire 2008