Owned Real Properties

3 Months Ended

Mar. 31, 2026

Owned Real Properties

Owned Real Properties

3.	Owned Real Properties

Our owned real properties include 96 properties within our Triple-Net Portfolio leased to 18 different operators and 30 properties within our SHOP segment managed on our behalf by eight independent operators under separate management agreements. The following tables summarize our investments in owned properties at March 31, 2026 (dollar amounts in thousands):


		NNN								SHOP								Total
					Percentage			Number					Percentage			Number					Percentage			Number
		Gross			of			of		Gross			of			of		Gross			of			of
Type of Property		Investment			Investment			Properties ⁽¹⁾		Investment			Investment			Properties ⁽¹⁾		Investment			Investment			Properties ⁽¹⁾
Seniors Housing		$	479,641		27.9	%		52		$	701,612		40.7	%		30		$	1,181,253		68.6	%		82
Skilled Nursing			528,302		30.7	%		43			—		—	%		—			528,302		30.7	%		43
Other⁽²⁾			12,005		0.7	%		1			—		—	%		—			12,005		0.7	%		1
Total		$	1,019,948		59.3	%		96		$	701,612		40.7	%		30		$	1,721,560		100.0	%		126


									Average
					Number of				Investment
		Gross			SNF		SH		per
Type of Property		Investment			Beds		Units		Bed/Unit
Seniors Housing-NNN		$	479,641		—		3,130		$	153.24
Seniors Housing-SHOP			701,612		—		2,555		$	274.60
Seniors Housing			1,181,253		—		5,685		$	207.78
Skilled Nursing			528,302		5,217		236		$	96.88
Other ⁽²⁾			12,005		118		—			n/a
Total		$	1,721,560		5,335		5,921

(1)	We own properties in 23 states.

(2)	Includes three parcels of land held-for-use, and one behavioral health care hospital.

Owned Real Properties–SHOP

During the second quarter of 2025, we began utilizing the RIDEA structure and established a SHOP segment. Following the establishment of our SHOP segment, during the second through fourth quarter of 2025, we acquired 11 seniors housing communities within the SHOP segment. Additionally, we terminated triple-net master leases with three operators and converted 15 seniors housing communities covered under the master leases into our SHOP segment. Upon conversion into the SHOP segment, two of these communities are operating and accounted for as one community.

During the three months ended March 31, 2026, we continued to expand our SHOP segment. Accordingly, we terminated an additional triple-net master lease and converted the two seniors housing communities covered under the master lease into our SHOP segment. Upon conversion, we entered into a management agreement with an operator new to us. The communities are located in Texas with a total of 88-units and an aggregate gross book value of $26,285,000. Additionally, we acquired a portfolio of three seniors housing communities in Georgia. See Acquisitions below for more information. As of March 31, 2026, our SHOP segment represented 28.8% of our gross portfolio investments and comprised of 30 seniors housing communities that are managed on our behalf by eight independent operators pursuant to separate management agreements.

The following table presents information related to our SHOP segment as of March 31, 2026 (dollar amounts in thousands):


									Average
					Number		Number		Investment
			Gross		of		of		per
State		Investment			Properties		Beds/Units		Unit
Wisconsin		$	248,549		7		742		$	334.97
Georgia			131,630		4		482		$	273.09
Illinois			58,331		4		264		$	220.95
California			49,007		2		133		$	368.47
Colorado			41,847		4		228		$	183.54
Kentucky			39,778		2		158		$	251.76
Oregon			33,203		1		186		$	178.51
Tennessee			31,399		1		100		$	313.99
Kansas			26,439		2		114		$	231.92
Texas			26,285		2		88		$	298.69
Ohio			15,144		1		60		$	252.40
Total		$	701,612	⁽¹⁾	30		2,555		$	274.60

(1)

Subsequent to March 31, 2026, we acquired a community within our SHOP segment for $9,205. The community is located in Illinois with a total of 61 units. In conjunction with the acquisition, we entered into a management agreement with an operator new to us. Additionally, we terminated a triple-net master lease and converted two seniors housing communities covered under the master lease to our SHOP segment. Upon conversion, we entered into a management agreement with another operator also new to us. The communities are located in Georgia and South Carolina with a total of 159 units and an aggregate gross book value of $32,361.

Acquisitions

The following table summarizes acquisitions within our SHOP segment during the three months ended March 31, 2026:

Total

Number

Number

Purchase

Transaction

Acquisition

of

of

State ⁽¹⁾

Type of Property

Price ⁽¹⁾

Costs

Costs ⁽¹⁾

Properties⁽¹⁾

Beds/Units ⁽¹⁾

Georgia ⁽²⁾

SH

$

108,000

$

129

$

108,129

⁽³⁾

3

394

(1)	Subsequent to March 31, 2026, we acquired a 61-unit seniors housing community within our SHOP segment in Illinois for $9,205. In conjunction with the acquisition, we entered into a management agreement with an operator new to us.

(2)	In conjunction with this acquisition, we entered into a management agreement with another operator new to us.

(3)	Excludes $100 of additional costs incurred related to 2025 acquisitions. Additionally, at acquisition, we received property tax proration credits of $76.

The total acquisition costs allocated to SHOP assets acquired were as follows:


		Amount
Land		$	8,576
Buildings and improvements			99,553
Total acquisition costs		$	108,129

Capital Improvement Projects

During the three months ended March 31, 2026, we funded capital improvement projects of $2,012,000 within our SHOP segment.

Owned Real Properties–Triple-Net Portfolio

Our Triple-Net Portfolio includes owned properties that are leased pursuant to non-cancelable triple-net operating leases. Triple-net leases require the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities. The majority of our triple-net leases contain provisions for specified annual increases over the rents of the prior year.

Lease Extensions

Many of the triple-net leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater than that currently being paid. The following table provides information related to our triple-net lease extensions during the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):

Number

Number

Gross

of

of

Original

Extended

Year

Type of Property

Investment

Properties

Beds/Units

State

Maturity

Maturity

2026

SH

$

9,052

4

155

OK

October 31, 2026

October 31, 2030

2025

SNF

$

5,275

2

141

TN

December 31, 2025

⁽¹⁾

December 31, 2026

(1)	During the third quarter of 2025, the operator provided an election notice to exercise its purchase option. See Purchase Options below for more information.

Lease Terminations

During the three months ended March 31, 2026, we terminated a triple-net master lease and converted two seniors housing communities covered under the master lease into our SHOP segment. Upon conversion, we entered into a management agreement with an operator new to us. The communities are located in Texas with a total of 88 units and an aggregate gross book value of $26,285,000.

Subsequent to March 31, 2026, we terminated an additional triple-net master lease and converted two seniors housing communities covered under the master lease into our SHOP segment. Upon conversion, we entered into a management agreement with another operator also new to us. The communities are located in Georgia and South Carolina with a total of 159 units and an aggregate gross book value of $32,361,000.

During the three months ended March 31, 2025, we terminated two existing leases with the same operator, and combined them into a single master lease. The new master lease had a five-year term with one 1-year extension option and four 5-year extension options. In connection with the termination of these leases, we wrote-off straight-line rent receivable and lease incentive balances of $243,000 and $249,000, respectively. During the fourth quarter of 2025, we terminated the new master lease and converted the communities covered under the master lease into our SHOP segment.

Components of Rental Income

The following table summarizes components of our rental income for the three months ended March 31, 2026 and 2025 (in thousands):


		Three Months Ended
		March 31,
Rental Income			2026			2025
Contractual cash rental income		$	24,536	⁽¹⁾	$	29,623	⁽¹⁾
Variable cash rental income ⁽²⁾			2,268			3,090
Straight-line rent adjustment			(334)			(578)
Adjustment of lease incentives and rental income			—			(492)	⁽³⁾
Amortization of lease incentives			(131)			(199)
Total		$	26,339		$	31,444

(1)	Decreased primarily due to the conversion of communities from NNN to the SHOP segment and lower rent from property sales, partially offset by rent increases from fair-market rent resets, escalations and capital improvements.

(2)	The variable cash rental income for the three months ended March 31, 2026 and 2025 includes reimbursement of real estate taxes by our lessees. Decreased due to the conversion of communities from NNN to SHOP and property sales.

(3)	In connection with the termination of two existing leases with the same operator, and combining them into a single master lease, we wrote-off a straight-line rent receivable of $243 and a lease incentive balance of $249.

We monitor the collectability of our receivable balances, including deferred rent receivable balances, on an ongoing basis. For leases where we have concluded it is not probable that we will collect substantially all the lease payments under those leases, recognition of rental income is limited to the lesser of the amount of cash collected or rental income reflected on a straight-line basis. We write-off uncollectible operator receivable balances, including straight-line rent receivable and lease incentives balances, as a reduction to rental income in the period such balances are no longer probable of being collected. During the three months ended March 31, 2026, we did not record any write-offs of straight-line rent receivable or lease incentive balances. During the three months ended March 31, 2025, we wrote-off straight-line rent receivable and lease incentive balances of $243,000 and $249,000, respectively, in connection with the termination of two existing leases with the same operator, and combining them into a master lease as discussed above.

We continue to take into account the current financial conditions of our operators, in our estimation of uncollectible accounts and deferred rents receivable and closely monitor the collectability of such rents, adjusting future estimates as necessary.

Purchase Options

Some of our triple-net lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements as of March 31, 2026 (dollar amounts in thousands):


				Type		Number
Option				of		of			Gross			Net Book
Window		State		Property		Properties			Investments ⁽¹⁾			Value
2026		South Carolina		SH		1		$	11,719		$	7,319
2027-2029		Oklahoma		SH		4			9,052			2,938
2027-2029	⁽²⁾	Texas		SNF		4			52,726			47,220
2029		Colorado/Kansas/Ohio/Texas		SH		17			65,599			27,980
2029		North Carolina		SH		5			15,239			6,720
		Total				31	⁽³⁾	$	154,335	⁽³⁾	$	92,177	⁽³⁾

(1)	Gross investments include previously recorded impairment losses, if any.

(2)	The operator may elect to either receive an earn-out payment or exercise its purchase option. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the earn-out see Note 14. Commitments and Contingencies.

(3)

Excludes a purchase option with an expiration date of December 31, 2025. The operator provided notice of the election to exercise the purchase option during the third quarter of 2025. Subsequent to March 31, 2026, we entered into a purchase and sale agreement with the operator. The purchase option relates to a master lease covering two SNFs in Tennessee with a total of 141 beds and an aggregate gross book value of $5,275. As of March 31, 2026, we do not believe these centers meet the criteria to be classified as held-for-sale.

See Note-4 Financing Receivables for purchase options included in our financing receivable agreements.

Improvement Projects

During the three months ended March 31, 2026 and 2025, we invested in the following capital improvement projects within our Triple-Net Portfolio (dollar amounts in thousands):


		Three Months Ended March 31,
Type of Property		2026			2025
Seniors Housing Communities		$	273		$	966
Skilled Nursing Centers			380			360
Total		$	653		$	1,326

Properties Sold

During the three months ended March 31, 2026 and 2025, we recognized a net loss on sale of real estate of $10,000 and a net gain on sale of real estate of $171,000, respectively. The following table summarizes property sales during the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):


				Type		Number		Number
				of		of		of			Sales			Carrying			Net
Year		State		Properties		Properties		Beds/Units			Price			Value			(Loss) Gain ⁽¹⁾
2026		n/a		n/a		—		—		$	—		$	—		$	(10)	⁽²⁾

2025		Ohio		SH		1		39			1,000			670			267
		Oklahoma		SH		1		29			670			670			(96)
Total						2		68		$	1,670		$	1,340		$	171

(

(1)	Calculation of net (loss) gain includes cost of sales and write-off of straight-line receivable and lease incentives, when applicable.

(2)	We recognized a loss due to additional costs incurred related to properties sold during 2025.