Our real estate investments, net consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026			December 31, 2025
Building, improvements and construction in process	$	4,674,441		$	4,420,601
Land and improvements		453,642			420,046
Furniture, fixtures and equipment		329,594			305,491
		5,457,677			5,146,138
Less: accumulated depreciation		(1,039,176	)		(962,719	)
Total	$	4,418,501		$	4,183,419

Depreciation expense for the three months ended June 30, 2026 and 2025 was $46,601,000 and $37,284,000, respectively, and for the six months ended June 30, 2026 and 2025 was $91,357,000 and $73,861,000, respectively.

The following is a summary of our capital expenditures by reportable segment for the periods presented below (in thousands):


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
ISHC	$	36,096	$	62,606
SHOP		6,814		11,163
OM		2,614		5,677
Triple-Net Leased Properties		—		248
Total	$	45,524	$	79,694

For the six months ended June 30, 2026, we acquired three land parcels in Kentucky and Ohio for an aggregate contract purchase price of $4,066,000, plus closing costs, for the future development of ISHC and two land parcels in North Carolina and Virginia for an aggregate contract purchase price of $1,550,000, plus closing costs, for the future development of SHOP. For the six months ended June 30, 2026, we also acquired 14 senior housing properties using cash. The following is a summary of such acquisitions (dollars in thousands):


Location	Number of Buildings	Type	Date Acquired	Contract Purchase Price
Blue Springs, Kansas City and Raymore, MO	4	SHOP	02/09/26	$	62,500
San Rafael, CA	1	SHOP	02/25/26		55,000
Lenexa and Olathe, KS	2	SHOP	03/18/26		45,250
Dahlonega, GA and Boiling Springs, Lexington and Little River, SC	6	SHOP	04/01/26		86,417
Plymouth, MN	1	SHOP	06/12/26		40,500
Total	14			$	289,667

We accounted for such acquisitions of land and real estate investments completed during the six months ended June 30, 2026 as asset acquisitions. The following table summarizes the purchase price of such assets acquired at the time of acquisition based on their relative fair values (in thousands):


	2026 Acquisitions
Building and improvements	$	227,366
In-place leases		33,845
Land		31,033
Furniture, fixtures and equipment		4,585
Certificates of need		185
Total assets acquired	$	297,014

Subsequent to June 30, 2026, we acquired 11 senior housing properties included in our SHOP segment for an aggregate contract purchase price of $1,041,000,000.

For the six months ended June 30, 2026, we sold one OM building and one triple-net leased property. We recognized a total net gain on sales of real estate of $1,212,000. The following is a summary of such real estate sales (dollars in thousands):


Location	Number of Buildings	Type	Date Disposed	Contract Sales Price
Middletown, OH	1	OM	04/01/26	$	1,000
West Des Moines, IA	1	Triple-Net Leased Property	04/16/26		7,100
Total	2			$	8,100

On June 1, 2026, we sold one ISHC campus that was leased to an unaffiliated third party for total consideration of $14,150,000. The derecognition of fixed assets, intangible assets and a financing obligation resulted in a gain on disposition of $4,435,000, which is included in gain on dispositions of real estate, net, in our accompanying condensed consolidated statements of operations and comprehensive income.

As we continued to evaluate our properties based on their historical operating performance and our expected holding period, for the three and six months ended June 30, 2026, we recognized an aggregate impairment charge of $1,719,000 and $2,137,000, respectively, for one and two OM buildings, respectively. The fair value of one impaired OM building was determined based on the sales price specified in an executed purchase and sale agreement with a third-party buyer, while the fair value of the other impaired OM building was determined by its projected sales price as indicated in an independent third-party letter of intent, which were considered Level 2 measurements within the fair value hierarchy. For the three and six months ended June 30, 2025, we recognized an aggregate impairment charge of $12,659,000 and $34,365,000, respectively, for five and six OM buildings, respectively. The fair value of each OM building was determined by the sales price of the respective executed purchase and sale agreement with a third-party buyer, which were considered a Level 2 measurement within the fair value hierarchy.