| Summary of investments in mortgage loans secured by first mortgages |
The following table sets forth information regarding our investments in mortgage loans secured by first mortgages at March 31, 2026 (dollar amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Type | | Percentage | | Number of | | Investment | | | | | | | | Gross | | of | | of | | | | | | SNF | | SH | | per | | Interest Rate | | Maturity | | State | | Investment | | Property | | Investment | | Loans (1) | | Properties (1) | | Beds | | Units | | Bed/Unit | | 11.3% | (2) | 2043 | | MI | | $ | 179,882 | | SNF | | 45.7 | % | 1 | | 14 | | 1,749 | | — | | $ | 102.85 | | 8.3% | | 2030 | | CA | | | 56,379 | | SH | | 14.3 | % | 1 | | 2 | | — | | 171 | | $ | 329.70 | | 8.5% | | 2030 | | FL | | | 40,350 | | SH | | 10.3 | % | 1 | | 1 | | — | | 250 | | $ | 161.40 | | 10.3% | (3) | 2045 | | MI | | | 39,550 | | SNF | | 10.1 | % | 1 | | 4 | | 480 | | — | | $ | 82.40 | | 10.5% | (3) | 2045 | | MI | | | 19,650 | | SNF | | 5.0 | % | 1 | | 2 | | 201 | | — | | $ | 97.76 | | 8.8% | | 2026 | | MI | | | 17,743 | | SH | | 4.5 | % | 1 | | 1 | | — | | 85 | | $ | 208.74 | | 11.0% | (3) | 2045 | | MI | | | 14,775 | | SNF | | 3.8 | % | 1 | | 1 | | 146 | | — | | $ | 101.20 | | 7.3% | | 2026 | | NC | | | 10,750 | | SH | | 2.7 | % | 1 | | 1 | | — | | 45 | | $ | 238.89 | | 9.0% | (4) | 2030 | | IL | | | 14,310 | | UDP | | 3.6 | % | 1 | | — | | — | | — | | $ | — | | Total | | | | | | $ | 393,389 | (1) | | | 100.0 | % | 9 | | 26 | | 2,576 | | 551 | | $ | 125.80 | |
| (1) | Our mortgage loans are secured by properties located in five states with six borrowers. Additionally, some loans contain certain guarantees and/or provide for certain facility fees. Gross investment shown above excludes the impact of credit loss reserve. |
| (2) | During 2025, we modified the mortgage loan with Prestige, the borrower, to increase the current interest paid by the borrower from 8.5% to the full contractual interest rate of 11.14%, escalating annually. The modification was effective July 1, 2025. Additionally, the modification provides Prestige an option to prepay their mortgage loan at par without penalty within a 12-month window beginning in July 2026. Under the modification, Prestige agreed to provide us with at least a 90-day notice of its intention to exercise the option, and the ability for Prestige to exercise the pre-payment option is contingent on several factors including Prestige being current and in good standing on all its mortgage loans with LTC and obtaining replacement financing. In conjunction with the loan modification and the penalty-free early payoff option, during the third quarter of 2025, we wrote-off $41,455 of effective interest previously accrued related to this mortgage loan. During the three months ended March 31, 2026, Prestige provided notice of its intent to repay its $179,882 mortgage loan. Prestige is current on their contractual loan obligations through May 2026. |
| (3) | Mortgage loans provide for 2.25% annual increases in the interest rate after a certain time period. |
| (4) | During 2024, we committed to fund a $26,120 mortgage loan for the construction of a 116-unit SH located in Illinois. The borrower contributed $12,300 of equity which initially funded the construction. During the third quarter of 2025, we began funding the commitment. The loan bears interest at a current rate of 9.0% and an IRR of 9.5%. |
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| Schedule of mortgage loan activity |
The following table summarizes our mortgage loan activity for the three months ended March 31, 2026 and 2025 (in thousands): | | | | | | | | | | Three Months Ended March 31, | | | | 2026 | | 2025 | | Originations and funding under mortgage loans receivable | | $ | 7,155 | (1) | $ | 1,919 | (2) | Application of interest reserve | | | 850 | | | — | | Scheduled principal payments received | | | (125) | | | (124) | | Mortgage loan premium amortization | | | (2) | | | (2) | | Provision for credit losses | | | (79) | | | (18) | | Net increase in mortgage loans receivable | | $ | 7,799 | | $ | 1,775 | |
| (1) | We funded the following: |
| (a) | $6,515 under a $26,120 mortgage loan commitment for the construction of a 116-unit SH located in Illinois. The borrower contributed $12,300 of equity which was used to initially fund the construction. During the third quarter of 2025, we began funding this commitment. Our remaining commitment is $11,811. The loan bears interest at a current rate of 9.0% and an IRR of 9.5%; and |
| (b) | $640 under a $19,500 mortgage loan commitment for the construction of an 85-unit SH in Michigan. The borrower contributed $12,100 equity upon origination, which was used to initially fund the construction. Our remaining commitment is $1,757. The 8.8% interest-only loan matures in September 2026 and includes two one-year extension, each of which is contingent on certain coverage thresholds. |
| (2) | We funded the following: |
| (a) | $1,919 under our $19,500 mortgage loan commitment. For an explanation of the terms and other relevant information related to this mortgage loan, see (1) (b) above. |
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