Our tenant leases are typically structured as triple-net leases on single-tenant properties and have initial lease terms of 10 years to 15 years with one or more five-year extension options. Most of our tenant leases contain annual rent escalators, which may be fixed or variable. Lease payments that are subject to a variable rent escalator are typically determined annually and calculated using a variable index, such as the consumer price index, or an index that is dependent on a future date and indeterminable at the inception of the lease.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Lease payments based on fixed rent escalators	$	64,272	$	64,286	$	128,519	$	125,976
Lease payments based on variable rent escalators	4,619		2,761		10,720		6,365
Straight-line rent revenue adjustments	597		1,034		1,320		2,444
Escrow funds received from tenants for
property operating expenses	2,742		2,914		5,546		5,801
Amortization of lease incentives	(840)		(725)		(1,565)		(1,450)
Total rental income	$	71,390	$	70,270	$	144,540	$	139,136

As of June 30, 2026, we leased 35 properties to NHC pursuant to a triple-net master lease maturing in December 2026. As previously discussed, these properties were classified as assets held for sale on our condensed consolidated balance sheet as of June 30, 2026 and subsequently sold to an affiliate of NHC on July 1, 2026.

Contemporaneously with the closing of the sale of the NHC leased portfolio, we executed a partial master lease termination and partial assignment and assumption of the master lease agreement terminating our master lease agreement with NHC with respect to all properties, except four subleased properties located in Florida. We assigned to the NHC Purchaser, and the NHC Purchaser assumed from us, the master lease for the subleased properties. In July 2026, we recognized a reversal of deferred income of $0.5 million related to the lease termination as part of the gain on the sale of these properties. Reference the “NHC Leased Portfolio Disposition” section in Note 3 for information on the sale of the NHC properties.


	June 30, 2026				Six Months Ended June 30,
	Real		Mortgage		2026				2025
	Estate		and Other				% of				% of
	Properties1		Notes2		Revenues3		Total		Revenues3		Total

Senior Living	$	633,053	$	—	$	28,469	12.0	%	$	27,447	15.3	%
Bickford4	426,275		15,899		N/A		N/A		21,318		11.8	%

Escrow funds received from tenants for
property operating expenses	—		—		5,546		2.3	%	5,801		3.2	%
Other	1,365,732		208,638		120,595		51.1	%	97,236		54.1	%
Total tenant concentrations	$	2,425,060	$	224,537	154,610		65.4	%	151,802		84.4	%
Resident fees and services5					81,839		34.6	%	28,156		15.6	%
Total revenues					$	236,449	100.0	%	$	179,958	100.0	%

1 Real estate properties have been stated at their gross carrying amounts. Total real estate properties, as presented in the table above, excludes $3.0 million related to our corporate office buildings, $161.5 million related to properties classified as assets held for sale and $854.8 million related to the properties in our SHOP segment.

2 Mortgage and other notes receivable have been stated at their gross carrying amounts. Total mortgage and other notes receivable, as presented in the table above, excludes $15.3 million of credit loss reserves.

3 Revenues related to properties that have been sold and revenues related to properties classified as assets held for sale as of June 30, 2026 have been included in other revenues for both periods in the table above.

4 Bickford’s revenues for the six months ended June 30, 2026 have been included in other revenues because they were less than 10% of total revenues during this period.

5 There are no concentrations in revenues from resident fees and services because the resident agreements at the SHOs in our SHOP segment are between us and the individual residents.

During the six months ended June 30, 2026 and 2025, rental income from the NHC leased portfolio was $22.1 million, or 9.3% of total revenues, and $20.6 million, or 11.4% of total revenues, respectively, which included contingent rental income of $5.7 million and $4.2 million, respectively. A final settlement of contingent rental income for the period from January 1, 2026 through July 1, 2026 will be recognized in the third quarter of 2026.

As of June 30, 2026 and December 31, 2025, our real estate properties located in South Carolina were 12.2% and 12.0%, respectively, of the gross carrying amounts of our total real estate properties on our condensed consolidated balance sheets. We did not include three properties located in South Carolina that were classified as assets held for sale as of June 30, 2026 in our calculation. There were no other states where our geographical concentration in real estate properties was 10% or greater as of June 30, 2026 and December 31, 2025.

As of June 30, 2026, we leased 11 SHOs with a combined total of 2,499 units to Senior Living. During the six months ended June 30, 2026 and 2025, we recognized straight-line rent revenue of $(0.8) million and $(0.4) million, respectively, related to these leases.

As of June 30, 2026, we leased 37 SHOs with a combined total of 2,068 units to Bickford pursuant to four master leases which mature in 2028 through 2035. In April 2026, the Bickford master lease agreements were amended increasing the combined annual base rent for the Bickford portfolio to $38.4 million with annual rent escalators ranging between 2.0% and 3.0%. Pursuant to these amendments, Bickford is also required to pay us contingent rent based on a percentage of the combined monthly revenues for all of the properties leased to Bickford that exceeds a base amount. Bickford has been a cash basis tenant since 2022 when we received financial information from Bickford raising substantial doubt about its ability to continue as a going concern. As of June 30, 2026, these concerns had not been alleviated.

Additionally, we have an agreement with Bickford to fund up to $8.0 million of capital improvements on various properties in the Bickford portfolio. Pursuant to the terms of this agreement, rental income increases at an annual lease rate of 8.0% applied to the amount expended. In connection with the master lease amendments discussed above, we also extended the available funding period of this agreement through June 2027. As of June 30, 2026, we had $6.1 million funded under this agreement.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Bickford	$	10,924	$	9,993	$	21,129	$	19,977
Other	1,518		1,482		3,033		2,962
Total lease payments from cash basis tenants	$	12,442	$	11,475	$	24,162	$	22,939

Certain of our tenant leases at inception provide the tenant with an option to purchase the applicable property at a fixed base price, a fixed base price plus a specified share in any appreciation of the property or a price based on a specified fixed minimum internal rate of return on our investment. As of June 30, 2026, we had three properties with an aggregate net carrying value of $71.2 million that were subject to tenant purchase options with exercise dates between 2029 and 2031. During each of the six months ended June 30, 2026 and 2025, the aggregate rental income from these properties was $4.7 million. As of June 30, 2026, we cannot reasonably estimate the probability that any of these tenant purchase options will be exercised in the future.