LTC Properties, Inc., incorporated on May 12, 1992, a health care real estate investment trust (REIT). The Company invests primarily in senior housing and long term care properties through property lease transactions, mortgage loans and other investments. Its primary senior housing and long term healthcare property types include skilled nursing properties (SNF), assisted living properties (ALF), independent living properties (ILF) and combinations thereof. During 2011, it leased a private school property to a non-for-profit corporation providing therapeutic support and intensive home, school and center-based behavioral therapy for children, youth and families affected by Autism Spectrum Disorders. The Company, during 2011, acquired a 196-bed skilled nursing property. It purchased a 140-bed skilled nursing property located in Texas during 2011. During December 31, 2011, it acquired a vacant parcel of land in Texas. The Company, on March 26, 2012, acquired a skilled nursing property with 144 licensed beds. In May 2012, the Company acquired a 3.16 acre vacant parcel of land in Colorado. In July 2012, the Company acquired a skilled nursing property with 90 licensed beds. In August 2012, it acquired two skilled nursing facilities with a total of 288 licensed beds. In January 2013, the Company purchased two parcels of land.

As of 2011, it has investments in 12 states that include mortgages to 14 different operators. Skilled nursing facilities provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient's family, private health insurance, or through the federal Medicare or state Medicaid programs.

Assisted living facilities serve elderly persons who require assistance with activities of daily living, but do not require the constant supervision skilled nursing facilities provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs.

Independent living facilities, also known as retirement communities or senior apartments, offer a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers.

One of the properties in the Company’s real estate investment portfolio is a charter school. Charter schools provide an alternative to the traditional public school. Charter schools are autonomous entities authorized by the state or locality to conduct operations independent from the surrounding public school district. Laws vary by state, but generally charters are granted by state boards of education either directly or in conjunction with local school districts or public universities. Operators are granted charters to establish and operate schools based on the goals and objectives set forth in the charter. Upon receipt of a charter, schools receive an annuity from the state for each student enrolled. The other school in the Company’s investment portfolio is a private school and is closed and classified as held-for-sale.

As of 2011, the Company had investments in 25 states leased to 30 different operators. The Company’s owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 10 to 15 years. Many of the leases contain renewal options and one contains limited period options that permit the operator to purchase the property. The leases provide for fixed minimum base rent during the initial and renewal periods. The majority of the Company’s leases contain provisions for specified annual increases over the rents.