v3.26.1
Real Estate and Other Activities (Tables)
 6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Net Assets Acquired

We acquired or invested in the following net assets (in thousands):

 

 

 

For the Six Months
Ended June 30,

 

 

 

2026

 

 

2025

 

Land and land improvements

 

$

25,028

 

 

$

19,905

 

Buildings and other

 

 

148,095

 

 

 

19,409

 

Intangible lease assets — subject to amortization
   (weighted-average useful life of 20.3 years in 2026)

 

 

21,699

 

 

 

—

 

Investments in unconsolidated real estate joint ventures

 

 

—

 

 

 

63,015

 

Total net assets acquired

 

$

194,822

 

 

$

102,329

 
Summary of Status on Current Development and Capital Additions Projects

See table below for a status summary of our current development and capital addition projects (in thousands):

 

Property

 

Commitment (1)

 

 

Costs
Paid as of
June 30, 2026

 

 

Cost Remaining

 

IMED Hospitales ("IMED") (Spain)

 

$

65,310

 

 

$

55,674

 

 

$

9,636

 

IMED (Spain)

 

 

44,791

 

 

 

44,612

 

 

 

179

 

HSA (Florida)

 

 

43,500

 

 

 

7,171

 

 

 

36,329

 

NOR (California)

 

 

24,333

 

 

 

1,411

 

 

 

22,922

 

HSA (Louisiana)

 

 

19,000

 

 

 

740

 

 

 

18,260

 

 

 

$

196,934

 

 

$

109,608

 

 

$

87,326

 
(1)
Includes major projects currently in process.
Components of Total Investment in Financing Leases The components of our total investment in financing leases consisted of the following (in thousands):

 

 

 

As of June 30,
   2026

 

 

As of December 31,
   2025

 

Minimum lease payments receivable

 

$

559,416

 

 

$

570,150

 

Estimated unguaranteed residual values

 

 

203,818

 

 

 

203,818

 

Less: Unearned income and allowance for credit loss

 

 

(511,562

)

 

 

(523,746

)

Net investment in direct financing leases

 

 

251,672

 

 

 

250,222

 

Other financing leases (net of allowance for credit loss)

 

 

131,314

 

 

 

171,462

 

Total investment in financing leases

 

$

382,986

 

 

$

421,684

 
Summary of Investments in Unconsolidated Operating Entities

The following is a summary of our investments in unconsolidated real estate joint ventures by operator (amounts in thousands):

 

Operator

 

Ownership Percentage

As of June 30,
   2026

 

 

As of December 31,
   2025

 

Swiss Medical Network

 

70%

$

607,639

 

 

$

611,347

 

MEDIAN

 

50%

 

463,901

 

 

 

486,695

 

CommonSpirit (Utah partnership)

 

25%

 

170,952

 

 

 

162,278

 

Policlinico di Monza

 

50%

 

78,835

 

 

 

86,091

 

HM Hospitales

 

45%

 

50,330

 

 

 

53,366

 

Total

 

 

$

1,371,657

 

 

$

1,399,777

 

The following is a summary of our investments in unconsolidated operating entities (amounts in thousands):

 

Operator

 

As of June 30,
   2026

 

 

As of December 31,
   2025

 

Swiss Medical Network

 

$

193,666

 

 

$

197,497

 

Aevis Victoria SA ("Aevis")

 

 

58,831

 

 

 

64,859

 

Priory Group ("Priory")

 

 

45,316

 

 

 

43,913

 

Aspris Children's Services ("Aspris")

 

 

15,890

 

 

 

15,910

 

Total

 

$

313,703

 

 

$

322,179

 
Summary of Activity in Credit Loss reserves

The following table summarizes the activity in our credit loss reserves (in thousands):

 

 

 

For the Three Months
Ended June 30,

 

 

 

 

2026

 

 

2025

 

 

Balance at beginning of the period

 

$

42,772

 

 

$

577,455

 

 

Provision for credit loss, net (1)

 

 

23,903

 

 

 

(12,659

)

 

Expected credit loss reserve written off or related to financial
     instruments sold, repaid, or satisfied

 

 

(411

)

 

 

—

 

 

Balance at end of the period

 

$

66,264

 

 

$

564,796

 

 

 

 

 

 

For the Six Months
Ended June 30,

 

 

 

 

2026

 

 

2025

 

 

Balance at beginning of the year

 

$

553,297

 

 

$

511,473

 

 

Provision for credit loss, net (1)

 

 

38,457

 

 

 

53,323

 

 

Expected credit loss reserve written off or related to financial
     instruments sold, repaid, or satisfied (2)

 

 

(525,490

)

 

 

—

 

 

Balance at end of the period

 

$

66,264

 

 

$

564,796

 

 
(1)
The amount in 2026 is primarily related to loans to Tenor and Insight, whereas, the amount in 2025 is primarily related to Prospect. See "Leasing Operations (Lessor)" in this Note 3 for further discussion.
(2)
The amount in 2026 is primarily related to write-offs of previously reserved Prospect mortgages and other financing leases. See "Leasing Operations (Lessor)" in this Note 3 for further discussion.
Schedule of Concentrations of Credit Risk See below for our concentration details (dollars in thousands):

Total Assets by Operator

 

 

 

As of June 30, 2026

 

 

As of December 31, 2025

 

Operators

 

Total Assets (1)

 

 

Percentage of
Total Assets

 

 

Total Assets (1)

 

 

Percentage of
Total Assets

 

Circle Health Ltd ("Circle")

 

$

2,060,659

 

 

 

14.0

%

 

$

2,121,848

 

 

 

14.1

%

Priory

 

 

1,269,486

 

 

 

8.6

%

 

 

1,301,888

 

 

 

8.7

%

HSA

 

 

1,258,884

 

 

 

8.5

%

 

 

1,200,996

 

 

 

8.0

%

Swiss Medical Network

 

 

860,136

 

 

 

5.8

%

 

 

873,703

 

 

 

5.8

%

Lifepoint Behavioral

 

 

797,333

 

 

 

5.4

%

 

 

809,492

 

 

 

5.4

%

Other operators

 

 

6,639,704

 

 

 

45.1

%

 

 

6,688,287

 

 

 

44.6

%

Other assets

 

 

1,861,538

 

 

 

12.6

%

 

 

2,005,561

 

 

 

13.4

%

Total

 

$

14,747,740

 

 

 

100.0

%

 

$

15,001,775

 

 

 

100.0

%
(1)
Total assets by operator are generally comprised of real estate assets, mortgage loans, investments in unconsolidated real estate joint ventures, investments in unconsolidated operating entities, and other loans.

 

Total Assets by U.S. State and Country (1)

 

 

As of June 30, 2026

 

 

As of December 31, 2025

 

U.S. States and Other Countries

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

Texas

 

$

1,379,139

 

 

 

9.4

%

 

$

1,427,391

 

 

 

9.5

%

California

 

 

1,025,370

 

 

 

7.0

%

 

 

977,890

 

 

 

6.5

%

Florida

 

 

903,251

 

 

 

6.1

%

 

 

834,940

 

 

 

5.6

%

Arizona

 

 

325,519

 

 

 

2.2

%

 

 

328,873

 

 

 

2.2

%

Ohio

 

 

303,695

 

 

 

2.1

%

 

 

330,189

 

 

 

2.2

%

All other states

 

 

2,467,712

 

 

 

16.7

%

 

 

2,480,182

 

 

 

16.5

%

Other domestic assets

 

 

962,378

 

 

 

6.5

%

 

 

1,072,900

 

 

 

7.2

%

Total U.S.

 

$

7,367,064

 

 

 

50.0

%

 

$

7,452,365

 

 

 

49.7

%

United Kingdom

 

$

4,069,802

 

 

 

27.6

%

 

$

4,184,188

 

 

 

27.9

%

Switzerland

 

 

860,136

 

 

 

5.8

%

 

 

873,703

 

 

 

5.8

%

Germany

 

 

745,882

 

 

 

5.1

%

 

 

751,806

 

 

 

5.0

%

Spain

 

 

309,269

 

 

 

2.1

%

 

 

302,323

 

 

 

2.0

%

All other countries

 

 

496,427

 

 

 

3.3

%

 

 

504,729

 

 

 

3.4

%

Other international assets

 

 

899,160

 

 

 

6.1

%

 

 

932,661

 

 

 

6.2

%

Total international

 

$

7,380,676

 

 

 

50.0

%

 

$

7,549,410

 

 

 

50.3

%

Grand total

 

$

14,747,740

 

 

 

100.0

%

 

$

15,001,775

 

 

 

100.0

%

 

Total Assets by Facility Type (1)

 

 

As of June 30, 2026

 

 

As of December 31, 2025

 

Facility Types

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

General acute care hospitals

 

$

8,745,376

 

 

 

59.3

%

 

$

8,769,909

 

 

 

58.5

%

Behavioral health facilities

 

 

2,393,777

 

 

 

16.2

%

 

 

2,445,418

 

 

 

16.3

%

Post acute care facilities

 

 

1,651,316

 

 

 

11.2

%

 

 

1,671,616

 

 

 

11.1

%

Freestanding ER/urgent care facilities

 

 

95,733

 

 

 

0.7

%

 

 

109,271

 

 

 

0.7

%

Other assets

 

 

1,861,538

 

 

 

12.6

%

 

 

2,005,561

 

 

 

13.4

%

Total

 

$

14,747,740

 

 

 

100.0

%

 

$

15,001,775

 

 

 

100.0

%
(1)
For geographic and facility type concentration metrics in the tables above, we allocate our investments in unconsolidated operating entities pro rata based on the gross book value of the real estate. Such pro rata allocations are subject to change from period to period.

On an individual property basis, our largest investment in any single property was less than 2% of our total assets as of June 30, 2026.

On a revenue basis, concentration in 2026 compared to the same periods of 2025 is as follows:

Total Revenues by Geographic Location

 

 

 

For the Three Months Ended June 30,

 

 

 

2026

 

 

2025

 

Geographic Location

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Total U.S.

 

$

142,846

 

 

 

55.1

%

 

$

126,067

 

 

 

52.4

%

United Kingdom

 

 

95,943

 

 

 

37.0

%

 

 

93,924

 

 

 

39.1

%

All other countries

 

 

20,494

 

 

 

7.9

%

 

 

20,368

 

 

 

8.5

%

Grand total

 

$

259,283

 

 

 

100.0

%

 

$

240,359

 

 

 

100.0

%

Total Revenues by Facility Type

 

 

 

For the Three Months Ended June 30,

 

 

 

2026

 

 

2025

 

Facility Types

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

General acute care hospitals

 

$

162,523

 

 

 

62.7

%

 

$

147,648

 

 

 

61.4

%

Behavioral health facilities

 

 

55,090

 

 

 

21.2

%

 

 

53,545

 

 

 

22.3

%

Post acute care facilities

 

 

39,359

 

 

 

15.2

%

 

 

37,176

 

 

 

15.5

%

Freestanding ER/urgent care facilities

 

 

2,311

 

 

 

0.9

%

 

 

1,990

 

 

 

0.8

%

Total

 

$

259,283

 

 

 

100.0

%

 

$

240,359

 

 

 

100.0

%

The following shows those tenants that represented 10% or more of our total revenues for the three and six months ended June 30, 2026 and 2025:

 

 

For the Three Months Ended June 30,

 

 

 

2026

 

 

2025

 

Operators

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Circle

 

$

54,699

 

 

 

21.1

%

 

$

53,725

 

 

 

22.4

%

Priory

 

 

27,369

 

 

 

10.6

%

 

 

26,456

 

 

 

11.0

%

Other operators

 

 

177,215

 

 

 

68.3

%

 

 

160,178

 

 

 

66.6

%

Total

 

$

259,283

 

 

 

100.0

%

 

$

240,359

 

 

 

100.0

%

 

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

Operators

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Circle

 

$

109,660

 

 

 

21.4

%

 

$

104,436

 

 

 

22.5

%

Priory

 

 

54,865

 

 

 

10.7

%

 

 

51,397

 

 

 

11.1

%

Other operators

 

 

346,823

 

 

 

67.9

%

 

 

308,325

 

 

 

66.4

%

Total

 

$

511,348

 

 

 

100.0

%

 

$

464,158

 

 

 

100.0

%