v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We evaluate our business and make resource allocations on our two operating segments: Real Estate Investments and SHOP. In our Real Estate Investments segment, we invest in senior housing and healthcare real estate assets through acquisition and financing of primarily single-tenant properties. Properties acquired are leased primarily under triple-net leases and we are not involved in the management of the properties. Our Real Estate Investments segment includes leases, mortgage and other note investments in ILFs, ALFs, EFCs, SLCs, SNFs and HOSPs. Our SHOP segment includes multi-tenant ILFs. The SHOP properties and related operations are controlled by us and operated by property managers in exchange for a management fee. Reference Note 5 for additional information on our SHOP segment activities.

Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (“CODM”). Our CODM reviews financial and other performance information quarterly based upon segment net operating income (“NOI”). We define NOI as total revenues, less tenant reimbursements and property operating expenses. Our CODM evaluates NOI to make decisions about resource allocations and to assess our property level performance. For both segments, the CODM considers revenue and operating expenses on a comparative basis, both sequentially and year-over-year, and evaluates budget to actual variances on a quarterly basis when making decisions regarding allocations of resources to the segments. In addition, for the SHOP segment, the CODM reviews key performance indicators, including revenues and operating expenses per occupied unit or available unit and revenues and related functional expenses by resident. There were no intersegment transactions during the six months ended June 30, 2025 and 2024. Capital expenditures for the six months ended June 30, 2025 and 2024 were $141.8 million and $35.0 million, respectively, for our Real Estate Investments segment and $2.5 million and $3.7 million, respectively, for our SHOP segment.
Non-segment revenue consists primarily of other income. Non-segment assets primarily consist of corporate assets, including cash and cash equivalents and corporate offices and equipment, among others. Non-property specific revenues and expenses are not allocated to our operating segments in determining NOI.

The accounting policies of our segments are the same as those described in the significant accounting policies included in Note 2 in these condensed consolidated financial statements and in Note 2 to the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024. The results of operations of our acquisitions, as described in Note 3, are included in our condensed consolidated statements of income beginning on the respective acquisition date and are included in the applicable operating segment on the same basis. In the tables below, we recasted prior period segment disclosures to conform with the current period presentation to reflect our segment expense disclosures in greater detail as required by ASU 2023-07 - Segment Reporting (TOPIC 280): Improvements to Reportable Segment Disclosures, which we adopted effective December 31, 2024.

Information related to our reportable segments is presented in the tables below ($ in thousands):

Three Months Ended June 30, 2025
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$70,270 $— $— $70,270 
Resident fees and services— 14,217 — 14,217 
Interest income and other6,140 — 35 6,175 
Total revenues76,410 14,217 35 90,662 
Other senior housing operating expenses1
— 2,615 — 2,615 
Utilities— 940 — 940 
Dietary— 1,104 — 1,104 
Labor— 4,324 — 4,324 
Taxes and insurance2,914 1,413 — 4,327 
NOI 73,496 3,821 35 77,352 
Depreciation17,095 2,811 12 19,918 
Interest180 — 14,821 15,001 
Legal — — 1,095 1,095 
Franchise, excise and other taxes— — 243 243 
General and administrative— — 6,125 6,125 
Proxy contest and related expenses— — 1,308 1,308 
Loan and realty gains, net(1,393)— — (1,393)
Gains on sales of real estate properties, net(110)— — (110)
Gains from equity method investment(1,524)— — (1,524)
Net income (loss)$59,248 $1,010 $(23,569)$36,689 
June 30, 2025
Total assets$2,415,832 $267,778 $12,349 $2,695,959 

1    Includes management fees, general and administrative costs and marketing expenses.
Three Months Ended June 30, 2024
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$65,760 $— $— $65,760 
Resident fees and services— 13,390 — 13,390 
Interest income and other5,744 — 76 5,820 
Total revenues71,504 13,390 76 84,970 
Other senior housing operating expenses1
— 2,567 — 2,567 
Utilities— 913 — 913 
Dietary— 1,075 — 1,075 
Labor— 4,200 — 4,200 
Taxes and insurance2,802 1,682 — 4,484 
 NOI 68,702 2,953 76 71,731 
Depreciation14,992 2,490 8 17,490 
Interest761 — 14,093 14,854 
Legal — — 165 165 
Franchise, excise and other taxes— — 47 47 
General and administrative— — 4,870 4,870 
Loan and realty losses, net1,106 — — 1,106 
Gains on sales of real estate properties, net(1,517)— — (1,517)
Gains from equity method investment(236)— — (236)
Net income (loss)$53,596 $463 $(19,107)$34,952 
June 30, 2024
Total assets$2,197,656 $268,187 $11,069 $2,476,912 
Six Months Ended June 30, 2025
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$139,136 $— $— $139,136 
Resident fees and services— 28,156 — 28,156 
Interest income and other12,589 — 77 12,666 
Total revenues151,725 28,156 77 179,958 
Other senior housing operating expenses1
— 5,489 — 5,489 
Utilities— 2,037 — 2,037 
Dietary— 2,149 — 2,149 
Labor— 8,623 — 8,623 
Taxes and insurance5,801 2,951 — 8,752 
 NOI 145,924 6,907 77 152,908 
Depreciation33,483 5,569 23 39,075 
Interest929 — 28,409 29,338 
Legal — — 2,521 2,521 
Franchise, excise and other taxes— — 512 512 
General and administrative— — 12,954 12,954 
Proxy contest and related expenses— — 1,572 1,572 
Loan and realty gains, net(1,407)— — (1,407)
Gains on sales of real estate properties, net(224)— — (224)
Gains from equity method investment(1,939)— — (1,939)
Net income (loss)$115,082 $1,338 $(45,914)$70,506 

1 Includes management fees, general and administrative costs and marketing expenses.
Six Months Ended June 30, 2024
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$127,947 $— $— $127,947 
Resident fees and services— 26,645 — 26,645 
Interest income and other11,685 — 205 11,890 
Total revenues139,632 26,645 205 166,482 
Other senior housing operating expenses1
— 5,168 — 5,168 
Utilities— 1,846 — 1,846 
Dietary— 2,078 — 2,078 
Labor— 8,427 — 8,427 
Taxes and insurance 5,535 3,232 — 8,767 
NOI 134,097 5,894 205 140,196 
Depreciation30,050 4,927 18 34,995 
Interest1,524 — 28,199 29,723 
Legal — — 400 400 
Franchise, excise and other taxes— — (139)(139)
General and administrative— — 10,510 10,510 
Loan and realty losses, net1,116 — — 1,116 
Gains on sales of real estate properties, net(1,617)— — (1,617)
Gains from equity method investment(402)— — (402)
Net income (loss)$103,426 $967 $(38,783)$65,610 

1    Includes management fees, general and administrative costs and marketing expenses.