IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS |
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| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS | IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS Impairment of Real Estate During the six months ended June 30, 2026, the Company recognized real estate impairment of $0.4 million related to one closed facility and one facility that has sold. During the six months ended June 30, 2025, the Company recognized real estate impairment of $4.1 million related to one facility that has sold. To estimate the fair value of the impaired facilities, the Company utilized a market approach which considered binding sale agreements, non-binding offers from unrelated third parties, listing agreements or model-derived valuations with significant unobservable inputs, including comparable sales and other local and national industry market data (Level 3 measurements), as applicable. The Company continues to evaluate additional assets for sale as it looks to further improve its portfolio quality. This could lead to a shorter hold period for such assets and could result in the determination that the full amount of the Company’s investment in such assets is not recoverable, resulting in an impairment charge or loss on sale, which could be material. Dispositions The following table summarizes the Company’s dispositions for the periods presented (dollars in millions):
(1) The Company received $33.5 million of net proceeds on July 1, 2025 related to dispositions that closed on June 30, 2025. Related to these facilities, the Company recognized net income of $38.6 million and $8.6 million during the six months ended June 30, 2026 and 2025, respectively, which includes (i) net gain on sale and (ii) impairment of $0.3 million and $4.1 million for the six months ended June 30, 2026 and 2025, respectively. The sale of the disposition facilities does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to these facilities have remained in continuing operations.
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