v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
As of March 31, 2026, the Company had two operating and reportable business segments: SHOP and OMF.
The SHOP segment consists of direct investments in senior housing properties, primarily providing assisted living, independent living and memory care services, which are operated through engaging independent third-party operators. The OMF segment primarily consists of facilities leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses as well as senior housing properties, hospitals, inpatient rehabilitation facilities and skilled nursing facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses.
The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM evaluates performance of the combined properties in each reportable business segment using net operating income (“NOI”), which is defined as total revenues from tenants, less property operating and maintenance expense. The CODM uses NOI to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that NOI is useful as a performance measure because, when compared across periods, NOI reflects the impact on operations
from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from consolidated income (loss) before income taxes.
NOI excludes certain components from consolidated income (loss) before income taxes in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently.
Total assets by reportable business segment is not disclosed as the CODM does not review such information to evaluate business performance and allocate resources.

Reconciliation to Consolidated Financial Information
Summary information by reportable business segment is presented below (dollars in thousands):
Three months ended March 31, 2026
SHOPOMFTotal
Revenue from tenants$57,631 $28,654 $86,285 
Less:
Compensation related expenses (1)
26,485 — 26,485 
Other segment expenses (2)
18,383 8,050 26,433 
Property operating and maintenance44,868 8,050 52,918 
NOI$12,763 $20,604 33,367 
Acquisition and transaction related(53)
General and administrative(5,467)
Depreciation and amortization(17,738)
Loss on sale of real estate investments(2)
Interest expense(14,671)
Interest and other income, net171 
Gain on non-designated derivatives189 
Loss before income taxes(4,204)
Income tax expense(77)
Net loss(4,281)
Net income attributable to non-controlling interests(28)
Allocation for preferred stock(3,294)
Net loss attributable to common stockholders$(7,603)
__________
(1)     For the SHOP segment, compensation related expenses include costs incurred for salaries, benefits and other labor related costs.
(2)     For the SHOP segment, other segment expenses include costs incurred for supplies, management fees and overhead. The expense details for the OMF segment provided to the CODM primarily consist of reimbursable expenses which are largely recoverable from tenants. As such, the CODM focuses on monitoring NOI to evaluate performance as a significant portion of the property-level operating expenses is recovered from tenants.
Three months ended March 31, 2025
SHOPOMFTotal
Revenue from tenants$55,808 $30,635 $86,443 
Less:
Compensation related expenses (1)
27,003 — 27,003 
Other segment expenses (2)
19,368 11,485 30,853 
Property operating and maintenance (3)
46,371 11,485 57,856 
NOI$9,437 $19,150 28,587 
Impairment charges(11,899)
Acquisition and transaction related(51)
General and administrative (3)
(4,896)
Depreciation and amortization(23,706)
Gain on sale of real estate investments24,989 
Interest expense(14,529)
Interest and other expense, net(15)
Loss on non-designated derivatives(1)
Loss before income taxes(1,521)
Income tax benefit6 
Net loss(1,515)
Net income attributable to non-controlling interests(54)
Allocation for preferred stock(3,450)
Net loss attributable to common stockholders$(5,019)
__________
(1)     For the SHOP segment, compensation related expenses include costs incurred for salaries, benefits and other labor related costs.
(2)     For the SHOP segment, other segment expenses include costs incurred for supplies, management fees and overhead. The expense details for the OMF segment provided to the CODM primarily consist of reimbursable expenses which are largely recoverable from tenants. As such, the CODM focuses on monitoring NOI to evaluate performance as a significant portion of the property-level operating expenses is recovered from tenants.
(3)     Certain 2025 amounts have been reclassified from general and administrative to property operating and maintenance to align with the current period presentation.