v3.26.1
CONCENTRATION OF CREDIT RISK
 6 Months Ended
Jun. 30, 2026
Risks and Uncertainties [Abstract]  
CONCENTRATION OF CREDIT RISK
NOTE 3—CONCENTRATION OF CREDIT RISK

We use total revenues and total NOI in assessing our concentration of credit risk. See “Non-GAAP Financial Measures” included elsewhere in this Quarterly Report on Form 10-Q for additional disclosure and a reconciliation of Net income attributable to common stockholders, as computed in accordance with GAAP, to total NOI.

We are exposed to the credit risk of our tenants in our NNN and OM&R segments because those tenants are obligated to pay us rent and, in certain instances, pay or reimburse us for some or all property-related expenses, including utilities, real estate taxes, insurance, repairs and maintenance, cleaning, roads and grounds expense and other expenses. We also have credit risk exposure with certain tenants to whom we have extended loans. Because we engage independent managers to manage the properties in our SHOP segment in exchange for a management fee, we are not directly exposed to their credit risk in the same manner or to the same extent as the tenants in our NNN and OM&R segments.
The following table summarizes certain information about our credit risk concentration related to certain NNN and OM&R tenants, including any loans made to those tenants:

 
For the Three Months Ended June 30,
For the Six Months Ended June 30,
 
2026
2025
2026
2025
Contribution as a Percentage of Total Revenues:
 
 
Ardent
2.3 
%
2.7 
%
2.3%
2.8%
Kindred Healthcare, LLC (“Kindred”)
2.0 
2.5 
2.0
2.6
Contribution as a Percentage of Total NOI:
Ardent
5.7 
%
6.5 
%
5.9%
6.6%
Kindred
5.1 
5.9 
5.2
6.1

All of the rent and loans due to us from Kindred and substantially all of the rent due to us from Ardent is guaranteed by their respective corporate parents.

Lease Income

Rental income from our NNN and OM&R operating leases consists of fixed and variable lease payments. The variable payments primarily represent (i) amounts that certain tenants pay to reimburse us for property-level operating expenses that we pay on their behalf and (ii) percentage rent, which is a rental charge typically based on certain tenants' gross revenue. Substantially all of the resident fees and services earned from our SHOP segment represent fixed income from operating leases and have not been included in the table below.

In June 2026, we amended the existing leases for all long-term acute care hospital properties leased to Kindred to, among other things, extend the term for all properties to April 30, 2039 at the existing cash base rent and substantially the same cash base rent annual escalation of 2.75% and include all Kindred-operated properties into one amended master lease (the “Kindred Master Lease”).

The following table summarizes rental income from our NNN and OM&R operating leases (dollars in thousands):

For the Three Months Ended June 30,
For the Six Months Ended June 30,
2026
2025
2026
2025
Fixed income from operating leases
$
287,313 
$
309,828 
$
572,241 
$
625,937 
Variable income from operating leases
66,148 
63,688 
134,395 
125,011