Real Estate Investments, Net

6 Months Ended

Jun. 30, 2025

Real Estate Investments, Net [Abstract]

Property Acquisitions

The Company invests in healthcare-related facilities, primarily OMFs and SHOPs, which expand and diversify its portfolio and revenue base. The Company owned 175 properties (including one land parcel) as of June 30, 2025. No properties were acquired during the six months ended June 30, 2025.

Significant Concentrations

As of June 30, 2025 and 2024, the Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or greater of total annualized rental income for the portfolio on a straight-line basis.

The following table lists the states where the Company had concentrations of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of June 30, 2025 and 2024:


	June 30,
State	2025	2024









Florida	22.4%	20.5%
Georgia	11.1%	*
Pennsylvania	10.7%	10.5%




Iowa	10.3%	*

* Not greater than 10%.

Intangible Assets and Liabilities

The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place leases and other intangible assets, amortization and accretion of above- and below-market lease assets and liabilities, net and the amortization and accretion of above- and below-market ground leases, net, for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Amortization of in-place leases and other intangible assets (1)	$	2,168	$	3,585	$	4,683	$	6,669
Accretion of above- and below-market leases, net (2)	$	(158)	$	(284)	$	(197)	$	(784)
Amortization of above- and below-market ground leases, net (3)	$	32	$	57	$	2,410	$	96

________

(1)Reflected within depreciation and amortization expense.

(2)Reflected within revenue from tenants.

(3)Reflected within property operating and maintenance expense.

The following table provides the projected amortization expense and adjustments to revenues for the next five years:


(In thousands)	2025 (remainder)		2026		2027		2028		2029
In-place lease assets	$	4,042	$	7,298	$	5,013	$	3,704	$	3,259
Other intangible assets	2		4		4		4		3
Total to be added to amortization expense	$	4,044	$	7,302	$	5,017	$	3,708	$	3,262

Above-market lease assets	$	(134)	$	(239)	$	(176)	$	(138)	$	(73)
Below-market lease liabilities	496		925		650		586		545
Total to be added to revenue from tenants	$	362	$	686	$	474	$	448	$	472

Dispositions

Three and Six Months Ended June 30, 2025

The Company disposed of three held-for-use OMFs and three held-for-use SHOPs during the three months ended June 30, 2025 for an aggregate contract sales price of $21.4 million. These dispositions resulted in an aggregate gain on sale of $2.7 million, which is presented in the Company’s consolidated statements of operations and comprehensive loss for the three months ended June 30, 2025.

The Company disposed of 15 held-for-use OMFs and three held-for-use SHOPs during the six months ended June 30, 2025 for an aggregate contract sales price of $189.8 million. These dispositions resulted in an aggregate gain on sale of $27.6 million, which is presented in the Company’s consolidated statements of operations and comprehensive loss for the six months ended June 30, 2025.

Three and Six Months Ended June 30, 2024

The Company disposed of one held-for-use SHOP during the three and six months ended June 30, 2024 for a contract sales price of $3.3 million. The Company recorded a $0.2 million loss on the sale of this SHOP, which is presented in the Company’s consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2024.

Assets Held for Sale

When assets are identified by management as held for sale, the Company reflects them separately on its balance sheet and stops recognizing depreciation and amortization expense on the identified assets and estimates the sales price, net of costs to sell, of those assets. If the carrying amount of the assets classified as held for sale exceeds the estimated net sales price, the Company records an impairment charge equal to the amount by which the carrying amount of the assets exceeds the Company’s estimate of the net sales price of the assets. For held-for-sale properties, the Company predominately uses the contract sales price as fair market value.

There was one SHOP classified as held for sale as of June 30, 2025. There were no properties classified as held for sale as of December 31, 2024.

Assets Held for Use

When circumstances indicate the carrying value of a property classified as held for use may not be recoverable, the Company reviews the property for impairment. For the Company, the most common triggering events are (i) concerns regarding the tenant (i.e., credit or expirations) in the Company’s single-tenant properties or significant vacancy in the Company’s multi-tenant properties and (ii) changes to the Company’s expected holding period as a result of business decisions or non-recourse debt maturities. If a triggering event is identified, the Company considers the projected cash flows due to various performance indicators, and where appropriate, the Company evaluates the impact on its ability to recover the carrying value of the properties based on the expected cash flows on an undiscounted basis over its intended holding period. The Company makes certain assumptions in this approach including, among others, the market and economic conditions, expected cash flow projections, intended holding periods and assessments of terminal values. Where more than one possible scenario exists, the Company uses a probability weighted approach in estimating cash flows. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analysis may not be achieved, and actual losses or impairment may be realized in the future. If the undiscounted cash flows over the expected hold period are less than the carrying value, the Company reflects an impairment charge to write the asset down to its fair value.

Impairment Charges

The following table presents impairment charges by segment recorded during the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024


OMF	$	1,142	$	2,409	$	1,889	$	2,409






SHOP	14,070		—		25,222		260

Total impairment charges(1)	$	15,212	$	2,409	$	27,111	$	2,669

(1)Amounts presented for the six months ended June 30, 2025 primarily relate to two held-for-use SHOPs and two held-for-use OMF. These properties were impaired to their contractual sales price as determined by their purchase and sale agreements and were subsequently sold or expected to be sold.