Investment in Unconsolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2026

Investment in Unconsolidated Joint Ventures

Summary of the preferred equity investments

The following table provides information regarding our unconsolidated joint venture investments at March 31, 2026 (dollar amounts in thousands):

Type

Total

Contractual

Number

of

Preferred

Cash

of

Carrying

State

Property

Investment

Return

Portion

Beds

Value

Texas

SNF

Senior Loan

⁽¹⁾

9.2

%

9.2

%

104

$

12,558

⁽¹⁾

(1)

Represents a $12,700 mortgage loan, which is comprised of $11,164 funded at origination during the three months ended June 30, 2024, an interest reserve of $750 and a capital expenditure reserve of $786. In accordance with GAAP, this mortgage loan was determined to be an ADC loan and is accounted for as an unconsolidated JV. The five-year mortgage loan is interest-only at a current rate of 9.15%. During the three months ended March 31, 2026, the operator provided notice of its intent to pay off this mortgage loan. Subsequent to March 31, 2026, the mortgage loan was paid off.

Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint ventures

Additionally, we had two preferred equity investments that also met the accounting criteria to be considered a VIE based on the same factors discussed above for the ADC loan. During 2025, both preferred equity investments were redeemed. The following table summarizes income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the three months ended March 31, 2026 and 2025 (in thousands):


	Type
	of		Income			Cash Income			Non-cash
Year	Properties		Recognized			Earned			Income Accrued
2026	SNF	$	295		$	295		$	—

2025	SNF	$	294		$	294		$	—
	SH ⁽¹⁾		145	⁽¹⁾		145	⁽¹⁾		—
	SH ⁽²⁾		3,226	⁽²⁾		3,172	⁽²⁾		54
Total		$	3,665		$	3,611		$	54

(1)	During the fourth quarter of 2025, our preferred equity investment in the JV that owns a 109-unit SH in Washington was redeemed for $8,140, which included a 12.0% exit IRR of $1,800.

(2)	During the first quarter of 2025, our preferred equity investment in the JV that owns a 267-unit SH in Washington was redeemed for $15,962, which included a 13% exit IRR of $2,962.