VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2025

Variable Interest Entities [Abstract]

NOTE 10 – VARIABLE INTEREST ENTITIES

We hold variable interests in several VIEs through our investing and financing activities, which are not consolidated, as we have concluded that we are not the primary beneficiary of these entities as we do not have the power to direct activities that most significantly impact the VIE’s economic performance and/or the variable interest we hold does not obligate us to absorb losses or provide us with the right to receive benefits from the VIE which could potentially be significant.

Below is a summary of our assets, liabilities, collateral and maximum exposure to loss associated with these unconsolidated VIEs as of December 31, 2025 and 2024:


	December 31,		December 31,
	2025		2024

	(in thousands)
Assets
Real estate assets – net	$	1,010,790	$	1,250,131
Assets held for sale		4,000		—
Real estate loans receivable – net		600,543		534,048
Investments in unconsolidated entities		346,034		9,754
Non-real estate loans receivable – net		20,742		38,463
Contractual receivables – net		1,068		994
Other assets		—		1,539
Total assets		1,983,177		1,834,929

Liabilities
Accrued expenses and other liabilities		(40,579)		(52,692)
Total liabilities		(40,579)		(52,692)

Collateral
Personal guarantee		(8,000)		(48,000)
Other collateral⁽¹⁾		(1,270,795)		(1,422,096)
Total collateral		(1,278,795)		(1,470,096)

Maximum exposure to loss	$	663,803	$	312,141

(1)	The decrease in the balance from December 31, 2024 to December 31, 2025 primarily relates to the transition of facilities from LaVie to Avardis during the second quarter of 2025, as discussed further in Note 5 – Contractual Receivables and Other Receivables and Lease Inducements.

In determining our maximum exposure to loss from these VIEs, we considered the underlying carrying value of the real estate subject to leases with these entities and other collateral, if any, supporting our other investments, which may include accounts receivable, security deposits, letters of credit or personal guarantees, if any, as well as other liabilities recognized with respect to these entities.

The table below reflects our total revenues from the entities that are considered unconsolidated VIEs, following the date they were determined to be VIEs, for the years ended December 31, 2025, 2024 and 2023:


	Year Ended December 31,
	2025		2024			2023

	(in thousands)
Revenue
Rental income	$	118,746	$	106,911	$	81,900
Interest income		31,519		16,414		5,512
Total	$	150,265	$	123,325	$	87,412

Consolidated VIEs

The Company consolidates Omega OP, a VIE in which the Company is considered the primary beneficiary. The Company, as general partner, has the power to direct the activities of Omega OP that most significantly affect Omega OP’s performance, and through its interest in Omega OP, has both the right to receive benefits from and the obligation to absorb losses of Omega OP.

Additionally, we own a partial equity interest in a JV that we have determined is a VIE. We have consolidated this VIE because we have concluded that we are the primary beneficiary of this VIE based on a combination of our ability to direct the activities that most significantly impact the JV’s economic performance and our rights to receive residual returns and obligation to absorb losses arising from the JV. Omega is not required to make any additional capital contributions to the JV. As of December 31, 2025 and 2024, this JV has $23.2 million and $24.3 million, respectively, of total assets and $20.9 million and $20.8 million, respectively, of total liabilities, which are included in our Consolidated Balance Sheets.