Note 5 – Other Revenues

Other revenues are outlined in the table below. Revenues from rental income include health care real estate properties owned by us and leased to third party operators. Revenues from management and accounting services include fees provided to manage and provide accounting services to other healthcare operators. Revenues from insurance services include premiums for workers’ compensation and professional liability insurance policies that our wholly owned insurance subsidiaries have written for certain healthcare operators to which we provide management or accounting services. "Other" revenues include miscellaneous health care related earnings (in thousands).

Rental Income

The Company leases real estate assets consisting of skilled nursing facilities and assisted living facilities to third party operators. Additionally, we sublease four Florida skilled nursing facilities included in our lease from National Health Investors (“NHI”) as noted in Note 8 – Long Term Leases. See Note 18 - Subsequent Events for further discussion regarding our lease with NHI.

Management Fees from National Health Corporation

Before the acquisition of the five skilled nursing facilities from National on June 1, 2026, we managed the five skilled nursing facilities. We recognized management fees and interest on management fees from these facilities of $944,000 and $1,376,000 for the three months ended June 30, 2026 and 2025, respectively. We recognized management fees and interest on management fees of $2,351,000 and $2,784,000 from these facilities for the six months ended June 30, 2026 and 2025, respectively. 

During the second quarter of 2026, we also recognized management fees of $18,325,000 previously earned for management services prior to 2025, but these management fees were not previously recognized as such revenues. These revenues did not previously meet the recognition criteria of ASC Topic 606, Revenue from Contracts with Customers, because the underlying consideration was constrained. Upon the acquisition of the five skilled nursing facilities from National Health Corporation on June 1, 2026, and as noted in Note 3 - Acquisition of Five Skilled Nursing Facilities, the revenue recognition criteria was met and the management fees were paid and recognized in the current period.

Insurance Services

For workers’ compensation insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three months ended June 30, 2026 and 2025 were $485,000 and $541,000, respectively. The premium revenues reflected in the interim condensed consolidated statements of operations for the six months ended June 30, 2026 and 2025 were $969,000 and $1,066,000, respectively. Associated losses and expenses including those for self-insurance are included in the interim condensed consolidated statements of operations as "Salaries, wages and benefits."

For professional liability insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three months ended June 30, 2026 and 2025 were $203,000 and $289,000, respectively. The premium revenues reflected in the interim condensed consolidated statements of operations for the six months ended June 30, 2026 and 2025 were $506,000 and $579,000 respectively. Associated losses and expenses including those for self–insurance are included in the interim condensed consolidated statements of operations as "Other operating costs and expenses".