Core Viewpoint - Lotus Creek Exploration Inc. has released its January Operational Update to Shareholders and approved the grant of stock options to certain Directors and Officers [1]. Group 1: Operational Update - The January Operational Update to Shareholders has been posted on the Company's website [1]. Group 2: Stock Options - The Board of Directors has approved the grant of 137,700 stock options [1]. - The stock options are exercisable at a price of $3.02 per common share [1]. - The options will vest on March 9, 2029, and expire 30 business days following the date of vesting [1].

Core Insights - Lotus Creek Exploration Inc. reported a transformational year in 2025, focusing on production growth and asset strengthening while maintaining a strong balance sheet [2][12]. Financial Performance - Fourth quarter 2025 production averaged 3,391 boe per day, a significant increase from 1,425 boe per day in the third quarter [12][20]. - Adjusted funds from operations for 2025 were $13.5 million, with the fourth quarter contributing $7.9 million, marking a 307% increase from the previous quarter [20]. - Cash flow from operating activities for the fourth quarter was $5.5 million, down from $6.7 million in the third quarter [12][20]. Production and Operations - The company drilled four Belly River wells in 2025, with three achieving payout within the $15.5 million capital program [8][20]. - The 104/06-26-042-05W5 well produced approximately 1,200 boe per day in February 2026, showcasing the reservoir's quality [9][20]. - January 2026 average production was approximately 585 boe per day, while February 2026 saw an increase to approximately 1,200 boe per day [12][20]. Capital Investments - Lotus Creek invested a total of $43.1 million in 2025, including drilling activities and a new 5,000 boe per day battery facility [20][21]. - A new 44 square mile 3D seismic program was completed, confirming a deep inventory of drilling locations [5][20]. Reserves Evaluation - As of December 31, 2025, the company reported total proved reserves of 7.2 million boe, with a net present value of future revenues before income taxes discounted at 10% estimated at approximately $119.5 million [35][36]. - The reserve life index for total proved reserves is 4.9 years, indicating a solid foundation for future production [34][35]. 2026 Outlook - The company revised its 2026 annual production guidance upward to 3,600-4,000 boe per day, reflecting accelerated drilling and strong performance from 2025 wells [13][21]. - A disciplined capital plan for 2026 was announced, focusing on high-value projects to ensure continued growth and financial resilience [10][21].

Core Insights - The article highlights three S&P 500 dividend stocks that are outperforming the index while providing monthly dividend payments, specifically Realty Income, Healthpeak Properties, and LTC Properties [1] Group 1: Realty Income (O) - Realty Income is a well-known REIT with a diversified portfolio of over 15,500 properties, offering a forward annual dividend yield of 4.8% [1] - Over the past month, Realty Income stock has increased by 8%, while the S&P 500 index has decreased by 1.7% [1] Group 2: Healthpeak Properties (DOC) - Healthpeak Properties is a healthcare-focused REIT that pays monthly dividends, with a forward annual dividend yield of 6.92% [1] - The stock has gained 6% in the past month, outperforming the S&P 500 index [1] Group 3: LTC Properties (LTC) - LTC Properties specializes in senior housing and healthcare properties, offering a forward annual dividend yield of 5.7% [1] - The stock has seen a remarkable increase of 9.5% over the past month, significantly outperforming the S&P 500 index [1]

Core Insights - LTC Properties is undergoing a strategic shift towards a seniors housing operating portfolio (SHOP), aiming to increase growth and reduce exposure to skilled nursing and loans [4][7][19] - By the end of 2026, SHOP is expected to represent 45% of the investment portfolio and 40% of net operating income (NOI) [1][7][19] - The company has a robust acquisition pipeline, with over $500 million in SHOP opportunities under review [2][7] Acquisition Strategy - Management has completed $108 million in SHOP acquisitions and expects an additional $160 million to close in the second quarter of 2026 [2][3] - The midpoint guidance for 2026 acquisitions is set at $600 million, which is nearly 70% higher than 2025 SHOP acquisitions [3][7] - The company is focused on transitioning from lower-growth triple-net REIT to a faster-growing SHOP-focused REIT, with the transformation expected to be largely complete by the end of 2026 [4][19] Financial Performance - The company reported a Core FFO per share increase of $0.05 to $0.70, representing an 8% growth year-over-year, driven by SHOP acquisitions [16] - For 2026, guidance includes Core FFO/share of $2.75–$2.79 and SHOP NOI of $65–$77 million [5][17] - The company expects to maintain leverage around 4.5x debt/EBITDAre, within its target range of 4x–5x [5][15] Portfolio Repositioning - LTC Properties is deliberately reducing its exposure to skilled nursing and loans, with plans to lower loans to under 10% and skilled nursing to under 30% of the portfolio by the end of 2026 [6][12] - The company plans to sell five skilled nursing properties and complete approximately $90 million in loan payoffs in the next 60 days [6][13] - The expected prepayment of a $180 million loan is part of the strategy to reduce operator concentration and reposition the portfolio [13][14] Operational Trends - The original 13 properties converted to SHOP generated a 22% NOI growth compared to 2024 pro forma NOI, producing $16.2 million in combined rent and NOI in 2025 [8] - For 2026, the company anticipates a 14% NOI growth for the SHOP portfolio, with occupancy projected to increase by about 150 basis points [9][10] - The company has established eight SHOP operator relationships, with plans to add two more in the second quarter [19]

Core Insights - The article discusses the author's extensive experience in researching various companies across different sectors, including commodities and technology, highlighting a focus on value investing through a YouTube channel [1]. Group 1: Company Research - The author has researched companies in-depth for over a decade, covering sectors such as oil, natural gas, gold, copper, and technology [1]. - The author has transitioned from writing a blog to creating a value investing-focused YouTube channel, where hundreds of companies have been analyzed [1]. - The preferred focus is on metals and mining stocks, but the author is also knowledgeable in consumer discretionary/staples, REITs, and utilities [1].

Core Insights - The company is undergoing a transformation to become a SHOP-focused REIT, aiming for significant growth in acquisitions and portfolio value by 2026 [3][18] - The acquisition guidance for 2026 is set at $600 million, which is nearly 70% higher than the previous year, with a strong start already achieved [2][12] - The company expects SHOP to represent 45% of its investment portfolio and 40% of its NOI by the end of 2026, indicating a strategic shift towards higher growth assets [1][18] Acquisition Strategy - The company has completed $100 million in SHOP acquisitions and has an additional $160 million scheduled for the second quarter, contributing to the $600 million investment guidance for 2026 [2][10] - The acquisition pipeline includes over $500 million in deals under review, all focused on SHOP properties [12] - The company is leveraging its smaller asset base to pursue smaller transactions that offer better pricing and yield opportunities [11][32] Financial Performance - The company reported a core FFO per share increase of 8% to $0.70 and a core FAD per share increase of 11% to $0.73 compared to the previous year [15] - The 2026 guidance for core FFO per share is projected to be between $2.75 and $2.79, with core FAD per share between $2.82 and $2.86 [16] - The company anticipates a 14% NOI growth for its SHOP portfolio in 2026 compared to pro forma 2025 [6][19] Portfolio Transformation - The transformation from a lower-growth triple-net REIT to a SHOP-focused REIT is expected to be completed by the end of 2026, with continued growth anticipated beyond that [4][18] - The average age of the SHOP portfolio is projected to be nine years, reflecting a strategy focused on newer, competitive assets [18][27] - The company plans to reduce its skilled nursing investments to less than 30% of its portfolio by the end of 2026 [1][8] Operational Metrics - The original 13 properties converted to SHOP saw a 22% increase in NOI over pro forma 2024, with combined rent and NOI of $16.2 million in 2025 [6][19] - Occupancy for the SHOP portfolio was 89.7% in 2025, with expectations for growth of 100 to 150 basis points in 2026 [7][19] - RevPOR is projected to grow by approximately 5%, while expenses are expected to increase by 2.5% [7][19] Strategic Relationships - The company has established eight SHOP operator relationships, with plans to add two more in Q2, enhancing its growth potential [19][20] - The focus on relationship-driven strategies is seen as a competitive advantage in the senior housing acquisitions market [11][39] - The company aims to align interests with operators through management agreements to drive performance and growth [20][39]

Financial Data and Key Metrics Changes - The company reported a Core FFO per share improvement of $0.05 to $0.70, representing an 8% increase year-over-year, and Core FAD per share improved by $0.07 to $0.73, reflecting an 11% increase [17] - The debt to annualized adjusted EBITDA for real estate was 4.5x, with an annualized adjusted Fixed Charge Coverage Ratio of 4.4x, well within the stated leverage target of 4-5x [17] Business Line Data and Key Metrics Changes - The SHOP portfolio grew to 25% of the investment portfolio by year-end 2025, with expectations to reach 45% by the end of 2026 [4] - The original 13 properties converted to SHOP grew NOI by 22% over 2024 pro forma NOI, generating $16.2 million in combined rent and NOI in 2025 [8] - The company anticipates 14% NOI growth at the midpoint for the full year 2026 over pro forma 2025 [8] Market Data and Key Metrics Changes - The company expects occupancy to grow by approximately 150 basis points in 2026, with RevPAR projected to increase by about 5% [9] - The company is in a competitive senior housing acquisitions environment, leveraging its smaller asset base and relationship-driven strategy to find opportunities [12] Company Strategy and Development Direction - The company is transforming from a lower growth triple net REIT into a faster-growing SHOP-focused REIT, with a guidance of $600 million in acquisitions for 2026, nearly 70% higher than 2025 [3] - The strategic portfolio transformation aims to reduce skilled nursing investments to less than 30% by the end of 2026, focusing on SHOP growth [5] - The company plans to continue investing in newer SHOP communities that are best positioned to compete against future developments [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial strength to support SHOP growth, with liquidity standing at $810 million on a pro forma basis [16] - The company anticipates continued accelerated internal and external growth powered by SHOP in 2027, following the completion of its transformation at the end of 2026 [5] - Management highlighted the importance of operator relationships in driving future growth and emphasized the potential for organic NOI growth to double by the end of 2026 compared to pre-transformation levels [20] Other Important Information - The company has an acquisition pipeline of over $500 million in deals under review, all focused on SHOP [13] - The company expects to sell five skilled nursing properties and has certain loan payoffs totaling $90 million in the next 60 days [10] Q&A Session Summary Question: What are the greatest threats to SNFs today? - Management noted that private capital driving prices in skilled nursing could change, and there is inherent risk in the skilled nursing sector [26] Question: Is the 14% same-store growth sustainable? - Management indicated that the pro forma occupancy of 89.7% is close to stabilized levels, and they are comfortable with the guidance for growth [27] Question: What are the year one yields for SHOP investments? - The company is underwriting year one yields at about 7%, with good growth headroom beyond that [40] Question: How competitive is the landscape for seniors housing deals? - Management acknowledged the competitive landscape but emphasized their ability to find transactions that meet their underwriting criteria [51] Question: What is the expected CapEx burden for LTC going forward? - Management stated that the current CapEx guidance is based on a $1,500 per unit assumption, which is appropriate given the age of the assets [75]

Financial Data and Key Metrics Changes - The company reported a Core FFO per share improvement of $0.05 to $0.70, representing an 8% increase year-over-year, and Core FAD per share improved by $0.07 to $0.73, reflecting an 11% growth [17] - The debt to annualized adjusted EBITDA for real estate was 4.5x, with an annualized adjusted Fixed Charge Coverage Ratio of 4.4x, well within the stated leverage target of 4-5x [17] Business Line Data and Key Metrics Changes - The SHOP portfolio grew to 25% of the investment portfolio by year-end 2025, with expectations to reach 45% by the end of 2026 [4][19] - The original 13 properties converted to SHOP grew NOI by 22% over pro forma 2024, generating $16.2 million in combined rent and NOI in 2025 [8] - The company anticipates a 14% NOI growth at the midpoint for the 27 properties in 2026 compared to pro forma 2025 [8] Market Data and Key Metrics Changes - The company expects to complete $600 million in acquisitions for 2026, nearly 70% higher than SHOP acquisitions in 2025 [3] - The occupancy rate for the SHOP portfolio was 89.7% in 2025, projected to grow by about 150 basis points in 2026 [9] Company Strategy and Development Direction - The company is transforming from a lower growth triple net REIT into a faster-growing SHOP-focused REIT, emphasizing substantial investments in people, systems, and technology [3] - The strategy includes leveraging a smaller asset base to capture outsized growth opportunities, focusing on newer assets with strong pricing power and high incremental margins [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the SHOP transformation, indicating that organic NOI growth is expected to double by the end of 2026 compared to pre-transformation levels [19] - The company is optimistic about maintaining a competitive edge in the senior housing market, with a focus on building strong operator relationships [12][19] Other Important Information - The company has expanded its credit facility to $800 million, anticipating nearly $270 million in asset sales and loan payoffs in 2026 to fund future investments [15][16] - The average age of the SHOP portfolio is projected to be nine years, reflecting a strategy of investing in newer communities [19] Q&A Session Summary Question: What are the greatest threats to SNFs today? - Management noted that private capital driving prices in skilled nursing could pose risks, and emphasized the organic growth potential from investing in newer assets [26] Question: Is the 14% same-store growth sustainable? - Management indicated that the pro forma occupancy of 89.7% is close to stabilized levels, and they are comfortable with the guidance for growth rates [27] Question: Can you provide insights on the SHOP investment pipeline? - The company has $160 million under LOI and is targeting year one yields of about 7% for acquisitions, leveraging its smaller size to pursue attractive transactions [40][41] Question: How is the competitive landscape for seniors housing deals? - Management acknowledged the competitive environment but expressed confidence in their ability to find suitable transactions, maintaining a focus on relationship-driven opportunities [50][52] Question: What is the expected CapEx burden for LTC going forward? - Management stated that the current CapEx guidance is based on a $1,500 per unit assumption, which is deemed sufficient given the age of the assets [75][76] Question: Will SHOP exposure increase beyond 45% after 2026? - Management clarified that while the transformation will complete by the end of 2026, future investments will continue to evolve based on shareholder value, with a focus on SHOP [88]

Financial Data and Key Metrics Changes - The company reported a Core FFO per share increase of $0.05 to $0.70, representing an 8% growth year-over-year, and Core FAD per share improved by $0.07 to $0.73, reflecting an 11% increase [15][16] - The debt to annualized adjusted EBITDA for real estate was 4.5x, with an annualized adjusted Fixed Charge Coverage Ratio of 4.4x, indicating a stable financial position within the stated leverage target of 4-5x [14][15] Business Line Data and Key Metrics Changes - The SHOP portfolio grew to 25% of the investment portfolio by year-end 2025, with expectations to reach 45% by the end of 2026, contributing to 40% of NOI [3][4] - The original 13 properties converted to SHOP achieved a 22% increase in NOI over 2024 pro forma NOI, generating $16.2 million in combined rent and NOI in 2025 compared to $12.3 million in 2024 [6][15] Market Data and Key Metrics Changes - The company anticipates $600 million in acquisitions for 2026, nearly 70% higher than SHOP acquisitions in 2025, with $108 million already completed and another $160 million scheduled for the second quarter [2][3] - The occupancy rate for the SHOP portfolio was 89.7% in 2025, projected to grow by approximately 150 basis points in 2026, with RevPAR expected to increase by around 5% [7][30] Company Strategy and Development Direction - The company is transforming from a lower growth triple net REIT to a faster-growing SHOP-focused REIT, emphasizing substantial investments in people, systems, and technology to support aggressive growth plans [2][4] - The strategic portfolio transformation aims to reduce skilled nursing investments to less than 30% by the end of 2026, reflecting a focus on SHOP growth [4][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic NOI growth, projecting it to double by the end of 2026 compared to pre-transformation levels, driven by investments in newer assets with better growth profiles [18][60] - The company highlighted the competitive landscape in senior housing acquisitions, noting that their smaller asset base and relationship-driven strategy provide competitive advantages [11][50] Other Important Information - The company expanded its credit facility to $800 million, enhancing its financial strength to support SHOP growth, with liquidity standing at $810 million on a pro forma basis [14][15] - The company expects to sell five skilled nursing properties and has loan payoffs totaling $90 million in the next 60 days, which will further reduce skilled nursing and loan exposure [9][10] Q&A Session Summary Question: What are the greatest threats to SNFs today? - Management noted that private capital driving prices in skilled nursing could change, and there is inherent risk in the skilled nursing sector due to fluctuating cap rates [21][24] Question: Is the 14% same-store growth sustainable? - Management indicated that while they are comfortable with the guidance, they prefer not to speculate on out-year growth rates at this time [25][26] Question: How does the SHOP portfolio's growth compare to previous years? - Management stated that the growth rate of 14% is expected to remain stable, and they are optimistic about achieving their projections [28][29] Question: What are the expected yields for SHOP investments? - The company is underwriting year-one yields around 7%, with good growth potential beyond that [36][37] Question: How does the competitive landscape affect finding suitable deals? - Management emphasized their ability to find transactions in a competitive environment, leveraging their relationship-focused strategy to access deals [47][50] Question: What is the long-term outlook for the SHOP business? - Management expressed optimism for continued growth in the SHOP business, targeting low to mid-teens same-store NOI growth in the future [59][60]

RENEWAL AND SUPPLEMENTAL OPERATING AND FINANCIAL DATA TRANSITION FOURTH QUARTER 2025 TABLE OF CONTENTS LEADERSHIP WENDY SIMPSON Executive Chairman PAM KESSLER Co-President and Co-CEO CLINT MALIN Co-President and Co-CEO CECE CHIKHALE EVP, Chief Financial Officer, Treasurer and Secretary DAVID BOITANO EVP, Chief Investment Officer GIBSON SATTERWHITE EVP, Asset Management MIKE BOWDEN SVP, Investments MANDI HOGAN SVP, Marketing BOARD OF DIRECTORS | WENDY SIMPSON | Executive Chairman | | --- | --- | | CORNELIA C ...