(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2002

OR

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from ____ to ____

Commission file number 1-11314

LTC PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)

Maryland

71-0720518

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No)

300 Esplanade Drive, Suite 1860
Oxnard, California 93030

(Address of principal executive offices)

(805) 981-8655

(Registrant’s telephone number, including area code)

Yes

x

No

o

Page

PART I -- Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheets

3

Consolidated Statements of Operations

4

Consolidated Statements of Cash Flows

5

Notes to Consolidated Financial Statements

6

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

22

Item 4.  Controls and Procedures

22

PART II -- Other Information

Item 5.  Other Information

23

Item 6.  Exhibits and Reports on Form 8-K

23

September 30, 2002

December 31, 2001

(Unaudited)

ASSETS

Real Estate Investments:

Buildings and improvements, net of accumulated depreciation and amortization:  2002 - $64,289;   2001 - $56,844

$

390,933

$

409,611

Land

27,164

26,393

Properties held for sale, net of accumulated depreciation and amortization:  2002 - $0;  2001 - $1,739

—  

1,537

Mortgage loans receivable, net of allowance for doubtful accounts:  2002 - $1,280;  2001 - $1,250

83,011

93,611

REMIC Certificates

68,545

73,154

Real estate investments, net

569,653

604,306

Other Assets:

Cash and cash equivalents

22,968

6,322

Debt issue costs, net

2,932

3,578

Interest receivable

3,543

3,258

Prepaid expenses and other assets

2,672

2,423

Notes receivable (includes $3,095 due from CLC Healthcare, Inc. in 2002 and 2001)

15,358

14,584

Marketable debt securities

8,871

8,755

Line of credit due from CLC Healthcare, Inc.

5,341

5,342

61,685

44,262

Total Assets

$

631,338

$

648,568

LIABILITIES AND STOCKHOLDERS’ EQUITY

Convertible subordinated debentures

$

—  

$

2,408

Bank borrowings

74,390

104,000

Mortgage loans and notes payable

137,527

162,232

Bonds payable and capital lease obligations

15,446

15,994

Senior mortgage participation payable

29,873

—  

Accrued interest

1,421

1,210

Accrued expenses and other liabilities

7,024

7,024

Liabilities related to properties held for sale

—  

114

Distributions payable

981

1,803

Total Liabilities

266,662

294,785

Minority interest

13,155

13,404

Stockholders’ equity:

Preferred stock $0.01 par value: 10,000 shares authorized; shares issued and outstanding: 2002 - 7,062;   2001 - 7,062

165,183

165,183

Common stock: $0.01 par value; 40,000 shares authorized;  shares issued and outstanding: 2002 – 18,393;   2001 – 18,393

184

185

Capital in excess of par value

255,311

254,930

Cumulative net income

245,923

218,826

Notes receivable from stockholders

(7,712

)

(8,042

)

Deferred compensation

(163

)

—  

Accumulated comprehensive income

2,741

2,437

Cumulative distributions

(309,946

)

(293,140

)

Total Stockholders’ Equity

351,521

340,379

Total Liabilities and Stockholders’ Equity

$

631,338

$

648,568

Three Months Ended
September 30,

Nine Months Ended
September 30,

2002

2001

2002

2001

Revenues:

Rental income

$

10,716

$

9,768

$

32,314

$

30,081

Interest income from mortgage loans and notes receivable

2,928

3,022

8,046

9,630

Interest income from REMIC Certificates

3,137

3,620

9,623

11,656

Interest and other income

951

647

2,462

2,049

Total revenues

17,732

17,057

52,445

53,416

Expenses:

Interest expense

5,417

5,116

16,153

16,631

Depreciation and amortization

3,535

3,404

10,904

10,344

Minority interest

322

254

978

724

Impairment charge

925

—  

5,807

18,829

Operating and other expenses

1,652

1,761

5,168

5,375

Total expenses

11,851

10,535

39,010

51,903

Income from continuing operations

5,881

6,522

13,435

1,513

Discontinued Operations:

Net loss from discontinued operations

(146

)

(176

)

(277

)

(4,577

)

Gain (loss) on sale of assets, net

819

(279

)

13,939

1,565

Net income (loss) from discontinued operations

673

(455

)

13,662

(3,012

)

Net income (loss)

6,554

6,067

27,097

(1,499

)

Less: Preferred dividends

3,762

3,772

11,281

11,315

Net income (loss) available to common stockholders

$

2,792

$

2,295

$

15,816

$

(12,814

)

Net Income (Loss) per Common Share from Continuing Operations Net of Preferred Dividends:

Basic

$

0.11

$

0.11

$

0.12

$

(0.39

)

Diluted

$

0.11

$

0.11

$

0.11

$

(0.39

)

Net Income (Loss) per Common Share from Discontinued Operations:

Basic

$

0.04

$

(0.02

 )

$

0.74

$

(0.12

)

Diluted

$

0.04

$

(0.02

 )

$

0.74

$

(0.12

)

Net Income (Loss) per Common Share Available to Common Stockholders: