Investment in Unconsolidated Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2025

Investment in Unconsolidated Joint Ventures

Summary of the preferred equity investments

The following table provides information regarding our unconsolidated joint venture investments at June 30, 2025 (dollar amounts in thousands):

Type

Total

Contractual

Number

of

Preferred

Cash

of

Carrying

State

Properties

Investment

Return

Portion

Beds/ Units

Value

Texas

SNF

Senior Loan

⁽¹⁾

9.2

%

9.2

%

104

$

11,453

⁽¹⁾

Washington

SH

Preferred Equity

⁽²⁾

12.0

%

9.0

%

109

6,340

⁽²⁾

Total

213

$

17,793

(1)

Represents a $12,700 mortgage loan, which is comprised of $11,164 funded at origination during the three months ended June 30, 2024, an interest reserve of $750 and a capital expenditure reserve of $786. In accordance with GAAP, this mortgage loan was determined to be an ADC loan and is accounted for as an unconsolidated JV. The five-year mortgage loan is interest-only at a current rate of 9.15%.

(2)

Our investment represents 15.5% of the total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the IRR is 8%. After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging between 12% to 14%, depending upon timing of redemption. We have the option to require the JV partner to purchase our preferred equity interest at any time between August 17, 2031 and December 31, 2036.

Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint ventures

The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the six months ended June 30, 2025 and 2024 (in thousands):


	Type
	of		Income			Cash Income			Non-cash
Year	Properties		Recognized			Earned			Income Accrued
2025	SNF	$	589		$	589		$	—
	SH		289			289			—
	SH ⁽¹⁾		3,226	⁽¹⁾		3,172	⁽¹⁾		54
Total		$	4,104		$	4,050		$	54

2024	SNF	$	295		$	196		$	—
	SH		225			225			—
	SH ⁽¹⁾		527			—			527
Total		$	1,047		$	421		$	527

(1)	During 2025, our preferred equity investment in a JV that owns a 267-unit ILF and ALF in Washington was redeemed for $15,962, which included a 13% exit IRR of $2,962.