We are the controlling equity partner in certain entities that we have deemed to be VIEs. For each of these partnerships, we determined whether either the members as a group lack the characteristics of a controlling financial interest or the total equity at risk in the individual partnership is insufficient to finance the activities of the partnership without additional subordinated financial support. We are deemed the primary beneficiary of these VIEs because we have the ability to direct the activities that most significantly impact the economic performance of these partnerships and also have the obligation to absorb the losses of the partnership or have the right to receive benefits arising from the partnership, subject to limited protective rights extended to our partners for specified business decisions.

We acquired three portfolios of real estate properties during the six months ended June 30, 2026. Each of these acquisitions was structured as a reverse exchange transaction under Section 1031 of the Internal Revenue Code using special purpose entities ("SPE") that were owned by a qualified intermediary. The reverse exchange transactions related to these acquisitions were completed on July 1, 2026 when the NHC properties were sold. We determined the SPEs are VIEs due to the insufficiency of the equity at risk and deemed that we are the primary beneficiary of these VIEs as we retain both the economic and legal benefits and obligations related to these entities. As a result, we recognize the SPEs on a consolidated basis in our financial statements.


	June 30,		December 31,
	2026		2025
Real Estate Investments segment:
Real estate properties, net	$	128,289	$	112,717
Cash and cash equivalents	1,051		1,020
Straight-line rents receivable	318		554
Other assets, net	1,481		2,751

SHOP segment:
Real estate properties, net	492,675		290,691
Cash and cash equivalents	10,690		8,121
Other assets, net	4,969		1,457
Accounts payable and other liabilities	8,497		5,473

In our Real Estate Investments segment, we have concluded that we are not the primary beneficiary for certain investments where we lack either directly or through related parties the power to direct the activities that most significantly impact the economic performance of these entities. We do not have any unconsolidated VIEs in our SHOP segment.


Year			Net		Maximum
of Initial		Source of	Carrying		Exposure		Note
Involvement	Name	Exposure	Amounts		to Loss		References
2014	Senior Living	Various1	$	38,319	$	54,819	Notes 4, 5
2016	Senior Living Management	Note	12,000		12,000		Note 4
2018	Bickford	Notes	15,997		27,540		Note 4
2019	Encore Senior Living	Various2	52,045		63,569		N/A
2020	Timber Ridge OpCo	Various3	(5,712)		(712)		Notes 6, 7
2020	Senior Living Hospitality Group	Various1	13,249		13,773		N/A
2021	Montecito Medical Real Estate	Notes	6,629		6,629		N/A
2021	Vizion Health	Various1	17,970		17,970		N/A
2021	Navion Senior Solutions	Various4	7,038		9,188		N/A
2024	Mainstay Healthcare	Note	9,064		9,064		N/A
2026	Senior Residential Realty LP	Note	5,537		5,537		N/A

We are not obligated to provide support beyond our stated commitments to these tenants and borrowers whom we classify as VIEs and accordingly, our maximum exposure to loss as a result of these relationships is limited to the amounts of our commitments. Our risk of economic loss on a tenant lease in excess of what is presented in the table above is limited to any future non-payments of rent before we are able to take effective remedial action, as well as any costs incurred to secure a new lease at the property. The potential extent of such losses at a future date would depend upon facts and circumstances unique to each tenant and the related lease and therefore are not included in the table above.

In the future, we may be deemed the primary beneficiary of the operations if the tenants or borrowers do not have adequate liquidity to accept the risks and rewards as the tenants and operators of the properties, and we may be required to consolidate the financial position and results of operations of the tenants or borrowers.