LTC Announces Development Commitments and Exclusive Pipeline Agreement

  LTC Announces Development Commitments and Exclusive Pipeline Agreement

Business Wire

WESTLAKE VILLAGE, Calif. -- October 8, 2013

LTC Properties, Inc. (NYSE:LTC) announced today that it entered into
development commitments totaling $19.6 million with an existing operator,
Anthem Memory Care (“Anthem”), to fund the construction of two free-standing
private-pay memory care communities in Colorado (Denver MSA), one with
60-units and the other with 56-units. In conjunction with such commitments,
LTC closed on two parcels of land for an aggregate purchase price of $2.1
million which were simultaneously added to LTC’s existing master lease
agreement with Anthem. Rent at an initial annual rate of 9.25% will commence
upon the respective project’s completion date (but in no event later than
December 31, 2014) and be calculated based on the land purchase price and
construction costs funded for each property to include compounded, carried
interest thereon of 9.0%.

Additionally, LTC announced that it entered into a pipeline agreement with
Anthem whereby LTC will be afforded the exclusive opportunity to finance any
seniors housing development projects or acquisition opportunities originated
by Anthem through May 2018 (unless earlier terminated as provided for therein)
with provisions limiting, among other things, to five the number of
development projects Anthem may have under construction at any time. Any such
projects or opportunities financed by LTC pursuant to the agreement will be
added to the parties’ master lease with the then remaining term extended by 10
years at initial lease rates estimated to range from 9.0% to 10.5% with annual
escalations of 2.5%.

Wendy Simpson, LTC’s Chairman, CEO and President commented, “LTC is excited to
expand its memory care development initiative with Anthem and to jointly
pursue further opportunities through our pipeline agreement. Our first memory
care development project with Anthem opened earlier this year with great
success, and we look to replicate that success in these new developments. In
addition to adding new properties to our portfolio at attractive investment
yields, our memory care development initiative enhances the quality mix of our
portfolio’s underlying payor source.”

LTC is a self-administered real estate investment trust that primarily invests
in senior housing and long-term care properties through triple-net lease
transactions, mortgage loans and other investments. For more information on
LTC Properties, Inc., visit the Company’s website at

Forward Looking Statements

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. Please see our most recent Annual Report on Form
10-K, our subsequent Quarterly Reports on Form 10-Q, and in our other publicly
available filings with the Securities and Exchange Commission for a discussion
of these and other risks and uncertainties. All forward looking statements
included in this press release are based on information available to the
Company on the date hereof, and the Company assumes no obligation to update
such forward looking statements. Although the Company’s management believes
that the assumptions and expectations reflected in such forward looking
statements are reasonable, no assurance can be given that such expectations
will prove to have been correct. The actual results achieved by the Company
may differ materially from any forward looking statements due to the risks and
uncertainties of such statements.


LTC Properties, Inc.
Wendy L. Simpson
Pam Kessler
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