Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of investments in financing receivables

The following tables provide information regarding our investments in financing receivables at March 31, 2026 (dollar amounts in thousands):


									Type	Number	Number	Purchase		Investment
Interest		Investment	Lease		Gross		LTC		of	of	of	Option		per
Rate		Year	Maturity	State	Investments		Investment		Properties	Properties	Beds/Units	Window		Bed/Unit
7.50%	⁽¹⁾	2023	2033	NC	$	123,397	$	120,481	SH	11	523	2025-2029	$	235.94
7.25%	⁽²⁾	2024	2034	NC/SC		122,460		64,450	SH	13	523	2024-2028	$	234.15
7.25%	⁽²⁾	2024	2034	NC		41,000		37,985	SH	4	217	2024-2028	$	188.94
Total					$	286,857	$	222,916		28	1,263

(1)	The seller-lessee has the option to buy the properties in multiple tranches and in serial closings approved by LTC with an exit IRR of 9.0% on any portion of the properties being purchased.

(2)	The seller-lessee has a purchase option exercisable with an exit IRR of 8.0%.

Summary of financing receivables activities

The following table summarizes our financing receivable activity for the three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,
	2026			2025
Investment and funding under financing receivables	$	314		$	—
Sale of properties accounted for as a financing receivable		(62,220)	⁽¹⁾		—
Distribution paid to non-controlling interest related to sale of properties accounted for as a financing receivable		(14,325)	⁽¹⁾		—
Amortization of capital costs		—			(22)
Recovery of credit losses		762			—
Net decrease in financing receivables	$	(75,469)		$	(22)

(1)

During 2022, we entered into a JV that purchased three skilled nursing centers with a total of 299 beds located in Florida. The JV leased the centers back to an affiliate of the seller and provided the seller-lessee with a purchase option. Our JV partner contributed $14,325 of equity into the joint venture. Accordingly, we consolidated the joint venture as Financing receivable and recorded the JV partner contribution as Non-controlling interest on our Consolidated Balance Sheets. During the three months ended March 31, 2026, the lessee exercised its purchase option to acquire the skilled nursing centers underlying the joint venture. In conjunction with this transaction, we received exit IRR income of $1,812. Additionally, we wrote-off $198 effective interest receivable previously recognized over the term of the financing receivable through payoff.