Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of investments in financing receivables

The following tables provide information regarding our investments in financing receivables at June 30, 2026 (dollar amounts in thousands):


									Type	Number	Number	Purchase		Investment
Interest		Investment	Lease		Gross		LTC		of	of	of	Option		per
Rate		Year	Maturity	State	Investments		Investment		Properties	Properties	Beds/Units	Window		Bed/Unit
7.50%	⁽¹⁾	2023	2033	NC	$	123,456	$	120,540	SH	11	523	2025-2029	$	236.05
7.25%	⁽²⁾	2024	2034	NC/SC		122,460		64,450	SH	13	523	2024-2028	$	234.15
7.25%	⁽²⁾	2024	2034	NC		41,000		37,985	SH	4	217	2024-2028	$	188.94
Total					$	286,916	$	222,975		28	1,263

(1)	The seller-lessee has the option to buy the properties in multiple tranches and in serial closings approved by LTC with an exit IRR of 9.0% on any portion of the properties being purchased.

(2)	The seller-lessee has a purchase option exercisable with an exit IRR of 8.0%.

Summary of financing receivables activities

The following table summarizes our financing receivable activity for the six months ended June 30, 2026 and 2025 (in thousands):


	Six Months Ended June 30,
	2026			2025
Investment and funding under financing receivables	$	373		$	—
Sale of properties accounted for as a financing receivable		(62,220)	⁽¹⁾		—
Distribution paid to non-controlling interest related to sale of properties accounted for as a financing receivable		(14,325)	^{(1) (2)}		—
Amortization of capital costs		—			(43)
Recovery of credit losses		762			—
Net decrease in financing receivables	$	(75,410)		$	(43)

(1)

During the three months ended March 31, 2026, the lessee exercised its purchase option pursuant to its master lease to acquire three skilled nursing centers in Florida with a total of 299 beds. In conjunction with this transaction, we received exit IRR income of $1,812. Additionally, we wrote-off $198 effective interest receivable previously recognized over the term of the financing receivable through payoff.

(2)	Represents a non-cash distribution made in connection with the payoff discussed in (1) above.