LTC PROPERTIES INC Commitments Disclosure
16. Commitments and Contingencies
At December 31, 2025, we had commitments as follows (in thousands):
Total | ||||||||||||
Investment | 2025 | Commitment | Remaining | |||||||||
Commitment | Funding | Funded | Commitment | |||||||||
Triple-Net Portfolio | $ | 5,256 | (1) | $ | 2,264 | $ | 3,839 | $ | 1,417 | |||
SHOP | 5,206 | 317 | 317 | 4,889 | ||||||||
Subtotal: owned real estate properties (Note 5. Owned Real Property Investments) | 10,462 | 2,581 | 4,156 | 6,306 | ||||||||
Financing receivables (Note 6.Financing Receivables) | 2,250 | 1,664 | 1,664 | 586 | ||||||||
Accrued incentives and earn-out liabilities | 4,500 | (2) | — | — | 4,500 | |||||||
Mortgage loans (Note 7. Mortgage Loan Receivables) | 69,770 | (3) | 14,322 | 29,076 | 40,694 | |||||||
Joint venture investments (Note 8. Investments in Unconsolidated Joint Ventures) | 1,438 | (4) | 1,262 | 1,262 | 176 | |||||||
Notes receivable (Note 9. Notes Receivable) | 560 | (5) | 25 | 25 | 535 | |||||||
Total | $ | 88,980 | $ | 19,854 | $ | 36,183 | $ | 52,797 | ||||
| (1) | Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties. |
| (2) | Includes an earn-out payment of up to $3,000 to an operator under a master lease on four SNFs in Texas. The master lease allows either an earn-out payment up to $3,000 or a purchase option. The earn-out payment is available, contingent on achieving certain thresholds per the lease, beginning in April 2024 through March 2027. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the purchase option see Note 5. Owned Real Properties. |
| (3) | Represents $45,620 related to two construction loans, $19,950 of contingent commitments available upon the borrower achieving certain coverage rations, and $4,200 of other commitments. |
| (4) | Represents expenditure reserve of $1,438 related to a mortgage loan secured by a SNF in Texas. The loan is accounted for an unconsolidated JV in accordance with GAAP. For more information regarding this loan see Note. 8 Investment in Unconsolidated Joint Ventures. |
| (5) | Represents working capital loan commitments. |
Additionally, some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. See Note 5. Owned Real Properties and Note 6. Financing Receivables for tables summarizing information about our purchase options.
From time to time, we are a party to various claims and lawsuits asserted against our company and our properties and against our third-party SHOP operators, lessees and borrowers. None of such claims or lawsuits singularly or in aggregate, in our management’s opinion, are material to our business, results of operations or financial condition. These claims and lawsuits may include matters involving general or professional liability attributable to our third-party SHOP operators, lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable management agreements, leases or mortgages. However, regardless of the merits of particular claims or lawsuits, we may be forced to expend significant financial resources to defend and resolve these matters.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 22, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.