(Mark One)

x

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

For the quarterly period ended March 31, 2003

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)

22917 Pacific Coast Highway, Suite 350

Malibu, California  90265

(Address of principal executive offices)

(805) 981-8655

(Registrant’s telephone number, including area code)

Yes   x

No   o

Yes   x

No   o

Page

PART I — Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheets

3

Consolidated Statements of Income

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

15

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

18

Item 4.   Controls and Procedures

18

PART II — Other Information

Item 6.   Exhibits and Reports on Form 8-K

19

March 31, 2003

December 31, 2002

(Unaudited)

ASSETS

Real Estate Investments:

Buildings and improvements, net of accumulated depreciation and amortization: 2003 - $67,512; 2002 - $64,316

$

375,898

$

379,228

Land

26,112

26,112

Mortgage loans receivable, net of allowance for doubtful accounts:  2003 - $1,280; 2002 - $1,280

82,297

82,675

REMIC Certificates

64,122

64,419

Real estate investments, net

548,429

552,434

Other Assets:

Cash and cash equivalents

8,888

8,001

Debt issue costs, net

4,670

5,309

Interest receivable

3,665

3,781

Prepaid expenses and other assets

2,778

2,069

Notes receivable (includes $3,095 due from CLC Healthcare, Inc. in 2003 and 2002)

15,575

15,622

Marketable debt securities

8,127

7,968

Line of credit due from CLC Healthcare, Inc.

4,745

4,741

48,448

47,491

Total Assets

$

596,877

$

599,925

LIABILITIES AND STOCKHOLDERS’ EQUITY

Bank borrowings

$

48,421

$

48,421

Mortgage loans and notes payable

136,384

136,971

Bonds payable and capital lease obligations

14,930

15,361

Senior mortgage participation payable

29,455

29,667

Accrued interest

1,117

1,293

Accrued expenses and other liabilities

5,646

6,419

Distributions payable

1,799

981

Total Liabilities

237,752

239,113

Minority interest

13,155

13,399

Stockholders’ equity:

Preferred stock $0.01 par value: 10,000 shares authorized; shares issued and outstanding: 2003 - 7,052; 2002 - 7,062

164,986

165,183

Common stock: $0.01 par value; 40,000 shares authorized; shares issued and outstanding: 2003 – 17,876; 2002 – 18,055

179

181

Capital in excess of par value

251,801

253,050

Cumulative net income

254,513

250,629

Other

(4,414

)

(6,112

)

Cumulative distributions

(321,095

)

(315,518

)

Total Stockholders’ Equity

345,970

347,413

Total Liabilities and Stockholders’ Equity

$

596,877

$

599,925

Three Months Ended
March 31

2003

2002

Revenues:

Rental income

$

9,965

$

10,634

Interest income from mortgage loans and notes receivable

2,507

2,593

Interest income from REMIC Certificates

2,786

3,267

Interest and other income

832

745

Total revenues

16,090

17,239

Expenses:

Interest expense

5,192

5,426

Depreciation and amortization

3,232

3,575

Impairment charge

1,260

—  

Operating and other expenses

2,201

1,638

Total expenses

11,885

10,639

Income before minority interest

4,205

6,600

Minority interest

(321

)

(321

)

Income from continuing operations

3,884

6,279

Discontinued Operations:

Loss from discontinued operations

—  

(26

)

Loss on sale of assets, net

—  

(72

)

Net loss from discontinued operations

—  

(98

)

Net income

3,884

6,181

Preferred stock dividends

(3,761

)

(3,758

)

Net income available to common stockholders

$

123

$

2,423

Net Income per Common Share from Continuing Operations Net of Preferred Stock Dividends:

Basic

$

0.01

$

0.14

Diluted

$

0.01

$

0.14

Loss per Common Share from Discontinued Operations:

Basic

—  

$

(0.01

)

Diluted

—  

$

(0.01

)

Net Income per Common Share Available to Common Stockholders:

Basic

$

0.01

$

0.13

Diluted

$

0.01

$

0.13

Comprehensive Income

Net income available to common stockholders

$

123

$

2,423

Unrealized gain on available for-sale securities

—  

28

Reclassification adjustment

1,303

—  

Total comprehensive income

$

1,426

$

2,451

Three Months Ended
March 31,

2003

2002

OPERATING ACTIVITIES:

Net income

$

3,884

$

6,181

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,232

3,713

Impairment charge

1,260

—  

Other non-cash charges

977

1,094

Loss on sale of real estate investments, net

—  

72

Decrease in accrued interest

(176

)

(108

)

Net change in other assets and liabilities

(1,753

)

(1,889

)

Net cash provided by operating activities

7,424

9,063

INVESTING ACTIVITIES:

Investment in real estate properties and capital improvements, net

(86

)

(653

)

Proceeds from sale of real estate investments and other assets, net

220

(458

)

Principal payments on mortgage loans receivable

347

4,009

Advances under line of credit to CLC Healthcare, Inc.

(950

)

(704

)

Payments from CLC Healthcare, Inc. on line of credit

946

611

Other

72

1,587

Net cash provided by investing activities

549

4,392

FINANCING ACTIVITIES:

Repayments of bank borrowings under line of credit

—  

(7,000

)