During the three months ended March 31, 2026, the Company purchased one real estate property, which was determined to be an asset acquisition. The Company allocated the purchase price to tangible assets, consisting of land, building and improvements, and tenant improvements; and an intangible asset, consisting of an in-place lease, based on the relative fair value method of allocating all accumulated costs. The Company engaged a third-party real estate services firm to assist in performing the purchase price allocation.

The following tables summarize the cash consideration transferred, including acquisition costs, and the purchase price allocation for the acquisition during the three months ended March 31, 2026 (amounts in thousands):


Property Description	Date Acquired	Ownership Percentage	Cash Consideration Transferred
Oklahoma City Healthcare Facility X	01/15/2026	100%	$	43,300







Total			$	43,300


	Total
Land	$	1,759
Building and improvements	34,569
Tenant improvements	4,090
In-place lease(1)	2,882




Total assets acquired	$	43,300

The Company capitalized acquisition costs of $172,000, which are included in the allocation of the real estate acquisition presented above.

On January 29, 2026, the Company sold the Saginaw Healthcare Facility for a sales price of $14,500,000, generating net proceeds of $14,343,000, after transaction costs. The Company recognized a gain on sale of $1,018,000.

On March 4, 2026, the Company sold the Henderson Healthcare Facility and the Las Vegas Healthcare Facility II for an aggregate sales price of $9,000,000, generating net proceeds of $8,932,000, after transaction costs. The Company recognized a gain on sale of $1,020,000.

On March 30, 2026, the Company sold the Alexandria Healthcare Facility for a sales price of $1,550,000, generating net proceeds of $1,538,000, after transaction costs. The Company recognized a gain on sale of $435,000.

Gain on dispositions of real estate is presented in the accompanying condensed consolidated statements of comprehensive income.

The following table summarizes the rollforward of goodwill for the three months ended March 31, 2026 and the year ended December 31, 2025 (amounts in thousands):


	March 31, 2026						December 31, 2025
	Goodwill		Accumulated Impairment Losses		Total		Goodwill		Accumulated Impairment Losses		Total
Balance at beginning of year	$	20,065	$	(2,430)	$	17,635	$	20,065	$	(2,365)	$	17,700
Goodwill associated with disposed reporting units	(391)		188		(203)		—		—		—
Impairment charges	—		—		—		—		(65)		(65)
Balance at end of year	$	19,674	$	(2,242)	$	17,432	$	20,065	$	(2,430)	$	17,635

As of March 31, 2026, the Company did not have exposure to geographic concentration within a metropolitan statistical area that accounted for at least 10.0% of rental revenue for the three months ended March 31, 2026.

As of March 31, 2026, the Company had one exposure to tenant concentration that accounted for at least 10.0% of rental revenue for the three months ended March 31, 2026. The leases with tenants at properties under the common control of PAM Health and its affiliates accounted for 16.3% of rental revenue for the three months ended March 31, 2026.

During the three months ended March 31, 2026, the Company did not record any impairment losses. During the three months ended March 31, 2025, the Company recorded impairment losses on real estate of $3,531,000. Refer below for further details on the impairment losses recorded.

On May 6, 2024, Steward Health Care System LLC, or Steward, the sponsor and owner of the former tenant at the Stoughton Healthcare Facility, announced that it filed for Chapter 11 bankruptcy protection under the United States Bankruptcy Code. On September 19, 2024, the U.S. Bankruptcy Court for the Southern District of Texas approved Steward’s request to reject the Company’s lease.

On August 4, 2025, the Company committed to a plan to demolish the Stoughton Healthcare Facility. The Company recorded $986,000 in demolition costs related to the Stoughton Healthcare Facility during the three months ended March 31, 2026, which is recorded in demolition costs in the accompanying condensed consolidated statements of comprehensive income. The demolition of the Stoughton Healthcare Facility was completed on April 10, 2026.

During the three months ended March 31, 2025, the Company recorded impairment losses on real estate of $3,531,000 attributable to the Stoughton Healthcare Facility. The fair value of the Stoughton Healthcare Facility was measured based on inputs that are derived principally from observable market data related to the marketing for sale of the asset, which resides within Level 2 of the fair value hierarchy. This impairment was allocated to buildings and improvements.

Impairment losses on real estate are recorded as impairment losses in the accompanying condensed consolidated statements of comprehensive income.