| 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 June 30, 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 | | $ | 179,875 | | SNF | | 45.4 | % | 1 | | 14 | | 1,749 | | — | | $ | 102.84 | | 8.3% | | 2030 | | CA | | | 56,379 | | SH | | 14.2 | % | 1 | | 2 | | — | | 171 | | $ | 329.70 | | 8.5% | | 2030 | | FL | | | 40,528 | | SH | | 10.2 | % | 1 | | 1 | | — | | 250 | | $ | 162.11 | | 10.3% | (3) | 2045 | | MI | | | 39,550 | | SNF | | 10.0 | % | 1 | | 4 | | 480 | | — | | $ | 82.40 | | 10.8% | (3) | 2045 | | MI | | | 19,600 | | SNF | | 5.0 | % | 1 | | 2 | | 201 | | — | | $ | 97.51 | | 8.8% | | 2027 | | MI | | | 17,983 | | SH | | 4.6 | % | 1 | | 1 | | — | | 85 | | $ | 211.56 | | 11.0% | (3) | 2045 | | MI | | | 14,775 | | SNF | | 3.7 | % | 1 | | 1 | | 146 | | — | | $ | 101.20 | | 7.3% | | 2027 | | NC | | | 11,016 | | SH | | 2.8 | % | 1 | | 1 | | — | | 45 | | $ | 244.80 | | 9.0% | (4) | 2030 | | IL | | | 16,386 | | UDP | | 4.1 | % | 1 | | — | | — | | — | | $ | — | | Total | | | | | | $ | 396,092 | (1) | | | 100.0 | % | 9 | | 26 | | 2,576 | | 551 | | $ | 126.67 | |
| (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 provide Prestige an option to prepay their mortgage loan at par without penalty within a 12-month window beginning in July 2026. The modification was effective July 1, 2025. 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 $179,875 mortgage loan. Prestige is current on their contractual loan obligations through August 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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| Scheduled principal payments on mortgage loan receivables |
The following table summarizes our mortgage loan activity for the six months ended June 30, 2026 and 2025 (in thousands): | | | | | | | | | | Six Months Ended June 30, | | | | 2026 | | 2025 | | Originations and funding under mortgage loans receivable | | $ | 9,472 | (1) | $ | 41,535 | (2) | Application of interest reserve | | | 1,294 | | | — | | Scheduled principal payments received | | | (180) | | | (451) | | Mortgage loan premium amortization | | | (5) | | | (3) | | Provision for credit losses | | | (106) | | | (411) | | Net increase in mortgage loans receivable | | $ | 10,475 | | $ | 40,670 | |
| (1) | We funded the following: |
| (a) | $8,592 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 $9,734. The loan bears interest at a current rate of 9.0% and an IRR of 9.5%; and |
| (b) | $880 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 $1,517. The 8.8% interest-only loan matures in March 2027 and includes two one-year extension options, each of which is contingent on certain coverage thresholds. |
| (2) | We funded the following: |
| (a) | $38,495 under a $42,300 mortgage loan commitment secured by a 250-unit SH in Florida. The loan term is five years at a fixed rate of 8.5%; and |
| (b) | $3,040 under our $19,500 mortgage loan commitment discussed in (1) (b) above. |
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