Note 8 - Long-term Leases |
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| 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 independent living centers under one lease agreement. As part of the lease agreement, we sublease 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):
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