On November 5, 2024, the Company entered into two mezzanine loans for the development of an inpatient rehabilitation facility and a behavioral healthcare facility in Lynchburg, Virginia, or the Mezzanine Loans. The Mezzanine Loans have total loan amounts of $12,543,000 and $5,000,000, respectively, and a maturity date of November 5, 2029, or the Maturity Date. The Mezzanine Loans bear interest at a rate of 13% per annum for the period commencing November 5, 2024 through November 4, 2027, and 15% per annum for the period commencing November 5, 2027 through the Maturity Date. The Company received an upfront fee of 2% of the total loan amount of the Mezzanine Loans, and will receive an additional 1% fee if the Mezzanine Loans have not been paid in full before November 5, 2027 and another 1% fee if the Mezzanine Loans have not been paid in full before November 5, 2028. The Mezzanine Loans include purchase options for the Company for both the inpatient rehabilitation facility and the behavioral healthcare facility upon completion of construction.


	Principal Balance		Fees		Carrying Value
Real estate related notes receivable, as of December 31, 2025	$	17,543	$	(257)	$	17,286


Amortization of fees	—		35		35
Real estate related notes receivable, as of March 31, 2026	$	17,543	$	(222)	$	17,321
CECL reserve					(205)
Real estate related notes receivable, net, as of March 31, 2026					$	17,116

During the three months ended March 31, 2026, the Company recognized interest income related to the real estate related notes receivable of $605,000, including $35,000 related to the amortization of fees which is included in real estate related notes receivable interest income in the accompanying condensed consolidated statements of comprehensive income. The Company did not recognize any interest income related to the real estate related notes receivable during the three months ended March 31, 2025.

The Company determines the current expected credit loss, or CECL, reserve quarterly by using a probability of default/loss given default method. The Company considers historical loss data, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan when developing the CECL reserve. Additionally, the Company considers credit quality when developing the CECL reserve, including the borrower credit rating and the underlying collateral and progress of developments, if applicable, among other considerations. The Company considers the Mezzanine Loans as a pool when developing the CECL reserve.

Pursuant to ASC 326, Financial Instruments - Credit Losses, the Company has made an accounting policy election not to measure the CECL reserve for accrued interest receivables, as these will be written off, if deemed uncollectible, in a timely manner. The Company generally suspends the income accrual for loans at the earlier of the date at which payments become 90 days past due or when, in the Company's opinion, recovery of income and principal becomes doubtful.

The Company's CECL reserve balance was $205,000 and $180,000 as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026 and 2025, the Company recorded an increase to the CECL reserve of $25,000 and $171,000, respectively.