v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Our business consists of two operating segments, Real Estate Investments and SHOP, which are also our reportable segments. In the Real Estate Investments segment, we invest in SHOs and medical facilities and lease these properties to third-party healthcare operators. We do not have involvement in the operations at these properties. In addition to our real estate property investments, we enter into financing arrangements with our tenants, or their affiliates, and other third-party healthcare operators which are primarily used to fund their acquisitions, construction projects and other operating needs. In the SHOP segment, we invest in SHOs and outsource the operations of these properties to third-party managers. We pay a management fee for the services provided by the managers pursuant to the terms of individual management agreements. Each of the units at these properties is subject to a customized agreement between us and the resident which outlines the fees charged for the unit and services agreed to by the resident.

Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (“CODM”). Our CODM reviews financial and other performance information quarterly based upon segment net operating income (“NOI”). We define NOI as total revenues, less tenant reimbursements of property operating expenses and senior housing operating expenses. Our CODM evaluates and uses NOI in making decisions about resource allocations to the segments and in assessing the property-level performance of our investment portfolios. The CODM evaluates revenues and operating expenses on a comparative basis for each segment, both sequentially and year-over-year, and also evaluates budget-to-actual variances of our segments on a quarterly basis. For our SHOP segment, the CODM reviews additional key performance indicators based on the revenues and operating expenses per occupied or available resident unit and based on revenues and functional expenses by resident.
We do not allocate non-property expenses to our operating segments in determining NOI. Our non-segment / corporate assets primarily include cash and cash equivalents and our corporate office buildings.

On August 1, 2025, we entered into a series of concurrent transactions that included the transition of seven properties from the Real Estate Investments segment to the SHOP segment. The operating results of these properties have been reflected in the SHOP segment in the current year periods and in the Real Estate Investments segment in the prior year periods. There were no real estate property transitions between our segments in the three and six months ended June 30, 2026 and 2025. We do not have any other inter-segment transactions.

The following tables provide information on our operating segments ($ in thousands):

Three Months Ended June 30, 2026
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Revenues:
Rental income$71,390 $— $— $71,390 
Resident fees and services— 44,779 — 44,779 
Interest and other income5,150 — — 5,150 
Total revenues76,540 44,779 — 121,319 
Utilities— 2,277 — 2,277 
Dietary— 2,667 — 2,667 
Labor— 18,297 — 18,297 
Taxes and insurance2,742 3,100 — 5,842 
Management fees— 2,172 — 2,172 
Other senior housing operating expenses1
— 5,244 — 5,244 
NOI 73,798 11,022 — 84,820 
Depreciation and amortization16,337 9,192 19 25,548 
Interest expense— — 15,814 15,814 
Legal expense— — 445 445 
Franchise, excise and other taxes— — 213 213 
General and administrative expenses— — 8,823 8,823 
Loan and realty gains, net(59)— — (59)
Gains on dispositions of real estate properties(21,967)— — (21,967)
Other non-operating income— — (86)(86)
Income tax expense— — 732 732 
Net income (loss)$79,487 $1,830 $(25,960)$55,357 

1    Amount includes general and administrative costs and marketing expenses.
Three Months Ended June 30, 2025
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Revenues:
Rental income$70,270 $— $— $70,270 
Resident fees and services— 14,217 — 14,217 
Interest and other income6,175 — — 6,175 
Total revenues76,445 14,217 — 90,662 
Utilities— 940 — 940 
Dietary— 1,104 — 1,104 
Labor— 4,324 — 4,324 
Taxes and insurance2,914 1,413 — 4,327 
Management fees— 710 — 710 
Other senior housing operating expenses1
— 1,905 — 1,905 
 NOI 73,531 3,821 — 77,352 
Depreciation and amortization17,095 2,811 12 19,918 
Interest expense180 — 14,821 15,001 
Legal expense— — 1,095 1,095 
Franchise, excise and other taxes— — 243 243 
General and administrative expenses— — 6,125 6,125 
Proxy contest and related expenses— — 1,308 1,308 
Loan and realty gains, net(1,393)— — (1,393)
Gains on dispositions of real estate properties(110)— — (110)
Gains from equity method investment(1,524)— — (1,524)
Net income (loss)$59,283 $1,010 $(23,604)$36,689 

1    Amount includes general and administrative costs and marketing expenses.
Six Months Ended June 30, 2026
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Revenues:
Rental income$144,540 $— $— $144,540 
Resident fees and services— 81,839 — 81,839 
Interest and other income10,070 — — 10,070 
Total revenues154,610 81,839 — 236,449 
Utilities— 4,749 — 4,749 
Dietary— 4,900 — 4,900 
Labor— 32,996 — 32,996 
Taxes and insurance5,546 5,996 — 11,542 
Management fees— 4,118 — 4,118 
Other senior housing operating expenses1
— 9,167 — 9,167 
NOI 149,064 19,913 — 168,977 
Depreciation and amortization32,899 16,306 34 49,239 
Interest expense— — 30,854 30,854 
Legal expense— — 750 750 
Franchise, excise and other taxes— — 428 428 
General and administrative expenses— — 16,674 16,674 
Loan and realty gains, net(109)— — (109)
Gains on dispositions of real estate properties(24,579)— — (24,579)
Other non-operating income— — (121)(121)
Income tax expense— — 732 732 
Net income (loss)$140,853 $3,607 $(49,351)$95,109 
Capital expenditures$19,453 $221,504 $390 $241,347 

1    Amount includes general and administrative costs and marketing expenses.
Six Months Ended June 30, 2025
Real EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Revenues:
Rental income$139,136 $— $— $139,136 
Resident fees and services— 28,156 — 28,156 
Interest and other income12,666 — — 12,666 
Total revenues151,802 28,156 — 179,958 
Utilities— 2,037 — 2,037 
Dietary— 2,149 — 2,149 
Labor— 8,623 — 8,623 
Taxes and insurance5,801 2,951 — 8,752 
Management fees— 1,401 — 1,401 
Other senior housing operating expenses1
— 4,088 — 4,088 
 NOI 146,001 6,907 — 152,908 
Depreciation and amortization33,483 5,569 23 39,075 
Interest expense929 — 28,409 29,338 
Legal expense— — 2,521 2,521 
Franchise, excise and other taxes— — 512 512 
General and administrative expenses— — 12,954 12,954 
Proxy contest and related expenses— — 1,572 1,572 
Loan and realty gains, net(1,407)— — (1,407)
Gains on dispositions of real estate properties(224)— — (224)
Gains from equity method investment(1,939)— — (1,939)
Net income (loss)$115,159 $1,338 $(45,991)$70,506 
Capital expenditures$141,833 $2,462 $— $144,295 

1    Amount includes general and administrative costs and marketing expenses.
The following table provides a summary of our total assets by segment ($ in thousands):

June 30,December 31,
20262025
Real Estate Investments segment$2,207,329 $2,282,128 
SHOP segment719,135 503,201 
Non-segment / corporate37,738 11,558 
Total assets$2,964,202 $2,796,887