Other Assets, net |
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| Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Assets, net | OTHER ASSETS, NET Other assets, net on the Company's Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 are detailed in the table below.
The Company's notes and mortgage note receivable included the following at March 31, 2026 and December 31, 2025: •At March 31, 2026 and December 31, 2025, notes receivable included a $17.0 million term loan and a $2.7 million revolving credit facility secured by assets and ownership interests of six geriatric behavioral hospitals and affiliated companies all of which are co-borrowers on the loans. At March 31, 2026, the Company had an unfunded commitment of $5.8 million on the revolving credit facility. The term loan bears interest at 9% per annum, with quarterly principal payments beginning June 30, 2026 through the facility maturity on December 31, 2032. The revolving credit facility, as amended, bears interest at 9% per annum and matures on June 30, 2026. The term loan and revolving credit facility include a 3% per annum non-cash interest charge that is payable upon the earlier of the repayment or maturity of each note. In 2024, the Company determined that the collectability of the term loan and revolver loan was not reasonably assured. The Company prepared a valuation of the notes based on the estimated fair value of the underlying collateral, requiring management to determine certain assumptions used for the estimation of fair value, including the determination of adjusted EBITDA and the selected EBITDA multiple range. As a result,the Company recorded an $11.0 million credit loss reserve on the notes receivable and has placed the notes on non-accrual status and reserved approximately $1.4 million of interest receivables. In 2025, the tenant entered into a letter of intent with a potential buyer for the sale of its business. Based on the terms in the letter of intent, the Company determined that the collectability of the remaining outstanding note and interest receivable balances were not reasonably assured, and the Company recognized an additional credit loss reserve for the remaining balances of the notes, totaling approximately $8.7 million and reserved the remaining outstanding interest receivables on these notes. •At March 31, 2026 and December 31, 2025, notes receivable also included a $1.7 million and $1.8 million, respectively, revolving credit facility with a borrower. The outstanding balance of the revolving credit facility will be repaid in monthly installments of $50,000 through the maturity date of April 1, 2027 with a balloon payment due at maturity. The revolving credit facility bears interest at 9% per annum, as well as a 3% per annum non-cash interest charge that is due and payable upon the earlier of the repayment or maturity of the note. •At March 31, 2026 and December 31, 2025, the Company had a $2.0 million mortgage note receivable with a developer which is secured by the land, improvements, and personal property. The mortgage loan, which bears interest at 10% per annum, will be interest only until the principal is due at the earlier of the sale of the property, or August 15, 2027. The Company identified the borrowers of these notes as variable interest entities ("VIEs"), but management determined that the Company was not the primary beneficiary of the VIEs because we lack either directly or through related parties any material decision-making rights or control of the entities that impact the borrowers' economic performance. We are not obligated to provide support beyond our stated commitment to the borrowers, and accordingly our maximum exposure to loss as a result of this relationship is limited to the amount of our outstanding notes receivable. The VIEs that we have identified at March 31, 2026 are summarized in the table below.
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