| June 30, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | |||||||||||
ASSETS | |||||||||||
Real estate properties: | |||||||||||
Land and land improvements | $ | 163,506 | $ | 154,673 | |||||||
Buildings, improvements, and lease intangibles | 1,077,295 | 1,047,743 | |||||||||
Personal property | 814 | 813 | |||||||||
Total real estate properties | 1,241,615 | 1,203,229 | |||||||||
Less accumulated depreciation | (301,593) | (280,316) | |||||||||
Total real estate properties, net | 940,022 | 922,913 | |||||||||
Cash and cash equivalents | 2,673 | 3,340 | |||||||||
| Assets held for sale | — | 5,265 | |||||||||
Other assets, net | 60,900 | 59,239 | |||||||||
Total assets | $ | 1,003,595 | $ | 990,757 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Liabilities | |||||||||||
Debt, net | $ | 559,321 | $ | 532,199 | |||||||
Accounts payable and accrued liabilities | 17,691 | 14,925 | |||||||||
Other liabilities, net | 12,341 | 14,246 | |||||||||
Total liabilities | 589,353 | 561,370 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' Equity | |||||||||||
Preferred stock, $0.01 par value; 50,000 shares authorized; none issued and outstanding | — | — | |||||||||
Common stock, $0.01 par value; 450,000 shares authorized; 28,655 and 28,471 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | 287 | 285 | |||||||||
Additional paid-in capital | 722,454 | 717,450 | |||||||||
Cumulative net income | 95,689 | 90,777 | |||||||||
Accumulated other comprehensive gain | 9,047 | 6,691 | |||||||||
Cumulative dividends | (413,235) | (385,816) | |||||||||
Total stockholders’ equity | 414,242 | 429,387 | |||||||||
Total liabilities and stockholders' equity | $ | 1,003,595 | $ | 990,757 | |||||||
| The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Rental income | $ | 30,971 | $ | 30,128 | $ | 62,240 | $ | 59,858 | |||||||||||||||
| Other operating interest | 253 | (1,043) | 508 | (695) | |||||||||||||||||||
| 31,224 | 29,085 | 62,748 | 59,163 | ||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Property operating | 5,865 | 5,585 | 12,234 | 11,680 | |||||||||||||||||||
General and administrative(1) | 4,890 | 10,559 | 9,998 | 15,659 | |||||||||||||||||||
| Depreciation and amortization | 10,738 | 10,879 | 21,395 | 21,822 | |||||||||||||||||||
| 21,493 | 27,023 | 43,627 | 49,161 | ||||||||||||||||||||
| OTHER (EXPENSE) INCOME | |||||||||||||||||||||||
| Net gains on sale, net of impairment of real estate assets | 46 | 640 | — | 640 | |||||||||||||||||||
| Interest expense | (7,428) | (6,592) | (14,227) | (12,944) | |||||||||||||||||||
| Credit loss reserve | — | (8,672) | — | (8,672) | |||||||||||||||||||
| Deferred income tax benefit | 12 | — | 12 | — | |||||||||||||||||||
| Interest and other income, net | 3 | 5 | 6 | 8 | |||||||||||||||||||
| (7,367) | (14,619) | (14,209) | (20,968) | ||||||||||||||||||||
| NET INCOME (LOSS) | $ | 2,364 | $ | (12,557) | $ | 4,912 | $ | (10,966) | |||||||||||||||
| Net income (loss) per common share - Basic & Diluted | $ | 0.06 | $ | (0.50) | $ | 0.12 | $ | (0.47) | |||||||||||||||
| Weighted Average Common Shares Outstanding-basic & Diluted | 27,016 | 26,803 | 27,004 | 26,768 | |||||||||||||||||||
(1) General and administrative expenses for the three and six months ended June 30, 2025, included severance and transition-related expenses totaling $1.3 million related to a termination in 2025. Non-cash stock-based compensation expense for the three and six months ended June 30, 2026 totaled $2.8 million and $5.5 million. respectively. Non-cash stock-based compensation expense for the three and six months ended June 30, 2025 included accelerated amortization of $4.6 million related to the termination in 2025. Non-cash stock-based compensation expense for the three and six months ended June 30, 2025 totaled $7.1 million and $9.8 million, respectively. | |||||||||||||||||||||||
| The Consolidated Statements of Operations do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | ||
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 2,364 | $ | (12,557) | |||||||
| Real estate depreciation and amortization | 10,900 | 10,861 | |||||||||
| Net gains on sale, net of impairment of real estate assets | (46) | (640) | |||||||||
Credit loss reserve(2) | — | 8,672 | |||||||||
| Total adjustments | 10,854 | 18,893 | |||||||||
FFO (1)(2)(3) | $ | 13,218 | $ | 6,336 | |||||||
| Straight-line rent | (591) | (1,184) | |||||||||
| Stock-based compensation | 2,778 | 2,531 | |||||||||
Accelerated amortization of stock-based compensation(4) | — | 4,591 | |||||||||
Severance and transition related expenses(4) | — | 1,311 | |||||||||
AFFO (1)(2)(3) | $ | 15,405 | $ | 13,585 | |||||||
FFO per Common Share-Diluted (1)(2) | $ | 0.48 | $ | 0.23 | |||||||
AFFO per Common Share-Diluted (1)(2) | $ | 0.56 | $ | 0.50 | |||||||
Weighted Average Common Shares Outstanding-Diluted (5) | 27,752 | 27,011 | |||||||||
| (1) | Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers funds from operations ("FFO") and adjusted funds from operations ("AFFO") to be appropriate measures of operating performance of an equity real estate investment trust ("REIT"). In particular, the Company believes that AFFO is useful because it allows investors, analysts and Company management to compare the Company's operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences caused by unanticipated items and other events. The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of FFO. FFO is an operating performance measure adopted by NAREIT. NAREIT defines FFO as the most commonly accepted and reported measure of a REIT’s operating performance equal to net income (calculated in accordance with GAAP), excluding gains or losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, plus depreciation and amortization related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT also provides REITs with an option to exclude gains, losses and impairments of assets that are incidental to the main business of the REIT from the calculation of FFO. In addition to FFO, the Company presents AFFO and AFFO per share. The Company defines AFFO as FFO, excluding certain expenses related to closing costs of properties acquired accounted for as business combinations and mortgages funded, excluding straight-line rent and the amortization of stock-based compensation, and including or excluding other non-cash items from time to time. AFFO presented herein may not be comparable to similar measures presented by other real estate companies due to the fact that not all real estate companies use the same definition. FFO and AFFO should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company's financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and AFFO should be examined in conjunction with net income as presented elsewhere herein. | ||||
| (2) | During the three months ended June 30, 2025, the Company recorded a credit loss reserve on its notes related to a geriatric behavioral hospital tenant totaling approximately $8.7 million. Because these notes are incidental to the Company's main business, the Company added back these reserves in its calculations of FFO and AFFO. | ||||
| (3) | During the three months ended June 30, 2025, the Company reversed interest related to a geriatric behavioral hospital tenant totaling approximately $1.7 million, resulting in a reduction of FFO and AFFO per diluted share of approximately $0.06. | ||||
| (4) | During the three months ended June 30, 2025, the Company recorded severance and transition-related charges totaling approximately $5.9 million, including non-cash accelerated amortization of stock-based compensation of approximately $4.6 million which reduced FFO per diluted common share by approximately $0.22. | ||||
| (5) | Diluted weighted average common shares outstanding for FFO and AFFO are calculated based on the treasury method, rather than the 2-class method used to calculate earnings per share. Restricted stock awards and time-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are dilutive. Performance-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are in-the-money as of the end of the reporting period and are dilutive. | ||||