v3.26.1
Note 8 - Long-term Leases
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Lessee, Operating and Finance Leases [Text Block]

Note 8 Long-Term Leases

 

Operating Leases

 

At June 30, 2026, we lease from NHI the real property of 32 skilled nursing facilities and three independent living centers under one lease agreement. As part of the lease agreement, we sublease four Florida skilled nursing facilities to a third-party operator. See Note 18 – Subsequent Event for further discussion of the lease and our purchase of the NHI real estate.

 

The lease includes base rent plus a percentage rent. The annual base rent is $31,975,000 in 2026. The percentage rent is based on a quarterly calculation of revenue increases and is payable on a quarterly basis. Total facility rent expense to NHI was $9,988,000 and $9,903,000 for the three months ended June 30, 2026 and 2025, respectively. Total facility rent expense to NHI was $20,091,000 and $19,814,000 for the six months ended June 30, 2026 and 2025, respectively.

 

Minimum Lease Payments

 

The following table summarizes the maturity of our operating lease liabilities as of June 30, 2026 (in thousands):

 

  

Operating

Leases

 

2027

 $19,474 

2028

  2,610 

2029

  2,146 

2030

  1,884 

2031

  1,570 

Thereafter

  9,656 

Total minimum lease payments

  37,340 

Less: amounts representing interest

  (5,931)

Present value of future minimum lease payments

  31,409 

Less: current portion

  (18,291)

Noncurrent lease liabilities

 $13,118