In conjunction with the sale of 59 outpatient medical buildings for $674 million in July 2024 and two outpatient medical buildings for $23 million in November 2024, the Company provided the buyer with a mortgage loan secured by the real estate sold for $405 million and $14 million, respectively. The remainder of the sales price was received in cash at the time of sales. The seller financing had an initial maturity date of July 2026 plus two 12-month extension options. The Company also received a $1 million loan origination fee in connection with the loan, which is being recognized in interest income over the remaining term of the loan. In connection with this seller financing, the Company reduced the gain on sales of real estate and recognized a mark-to-market discount of $21 million during the year ended December 31, 2024. This discount is based on the difference between the stated interest rate and the corresponding prevailing market rate as of the transaction date. The discount is recognized as interest income over the term of the discounted loan using the effective interest rate method.

In June 2026, the Company received a $399 million partial principal repayment. In connection with this repayment, the Company accelerated recognition of $9 million of non-cash interest income related to the mark-to-market discount and loan fees. Also in June 2026, the borrower elected the first of its two 12-month extension options, extending the maturity date of the remaining outstanding balance. The interest rate on the seller financing increased from 6.0% for the initial term to 6.5% during the optional extension period. Subsequent to the repayment, as of September 30, 2026, the outstanding principal balance was $20 million and was collateralized by eight outpatient medical buildings.

During the three and nine months ended September 30, 2026, the Company recognized $57 thousand and $12 million, respectively, of non-cash interest income related to the amortization of this mark-to-market discount, which includes the accelerated recognition discussed above for the nine months ended September 30, 2026. During the three and nine months ended September 30, 2025, the Company recognized $2 million and $5 million, respectively, of non-cash interest income related to the amortization of this mark-to-market discount. As of September 30, 2026 and December 31, 2025, the unamortized mark-to-market discount was $360 thousand and $12 million, respectively.


	Secured Loans		Mezzanine Loans
Loans receivable as of December 31, 2024	$	638,482	$	50,314
Add: Advances on and acquisitions of loans receivable	87,648		4,756
Less: Receipts on loans receivable and other reductions(1)	(142,670)		(7,380)
Loans receivable as of December 31, 2025	583,460		47,690
Add: Advances on and acquisitions of loans receivable	56,502		9,342
Less: Receipts on loans receivable and other reductions	(398,999)		(4,840)
Loans receivable as of September 30, 2026	$	240,963	$	52,192

(1)Includes the following: (i) the full early repayment in August 2025 of the $58 million outstanding balance of seller financing provided to the buyer of a portfolio of Senior Housing Operating Property (“SHOP”) facilities in January 2021 and (ii) the full repayment upon maturity in January 2025 of the $48 million outstanding balance of seller financing provided to the buyer of another SHOP portfolio in January 2021. Both of these loans receivable were secured by the buyer’s equity ownership in the properties.

In connection with the Company’s quarterly review process or upon the occurrence of a significant event, loans receivable are reviewed and assigned an internal rating of Performing, Watch List, or Workout. Loans receivable that are deemed Performing meet material contractual obligations, and collection and timing, of all amounts owed is reasonably assured. Watch List loans receivable are defined as loans receivable that do not meet the definition of Performing or Workout. Workout loans receivable are defined as loans receivable in which the Company has determined, based on current information and events, that: (i) it is probable it will be unable to collect all amounts due according to the contractual terms of the agreement, (ii) the borrower is delinquent on making payments under the contractual terms of the agreement, and (iii) the Company has commenced action or anticipates pursuing action in the near term to seek recovery of its investment.


Investment Type	Year of Origination(1)												Total
	2026		2025		2024		2023		2022		Prior
Secured loans
Risk rating:
Performing loans	$	10,540	$	67,324	$	80,605	$	42,756	$	34,319	$	—	$	235,544
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	10,540	$	67,324	$	80,605	$	42,756	$	34,319	$	—	$	235,544
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Mezzanine loans
Risk rating:
Performing loans	$	8,953	$	4,290	$	14,413	$	—	$	4,096	$	16,907	$	48,659
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total mezzanine loans	$	8,953	$	4,290	$	14,413	$	—	$	4,096	$	16,907	$	48,659
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers payment history and current credit status, industry conditions, current economic conditions, forecasted economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. Future economic conditions are based primarily on near-term economic forecasts from the Federal Reserve and reasonable assumptions for long-term economic trends. The determination of loan losses also considers concentration of credit risk associated with the senior housing, outpatient medical, and lab industries to which its loans receivable relate. The Company’s borrowers furnish property, portfolio, and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis; the Company utilizes this financial information to calculate the debt service coverages in its assessment of internal ratings that it uses as a primary credit quality indicator. Debt service coverage information is evaluated together with other property, portfolio, and operator performance information, including revenue, expense, net operating income, occupancy, rental rate, reimbursement trends, capital expenditures, and EBITDA (defined as earnings before interest, tax, and depreciation and amortization), underlying collateral value (as applicable), along with other liquidity measures. The Company evaluates, on a quarterly basis or immediately upon a significant change in circumstance, its borrowers’ ability to service their obligations with the Company.


	September 30, 2026				December 31, 2025
	Secured Loans		Mezzanine Loans		Total		Secured Loans		Mezzanine Loans		Total
Reserve for loan losses, beginning of period	$	4,750	$	6,595	$	11,345	$	5,574	$	4,925	$	10,499

Provision for expected loan losses on funded loans receivable	83		(3,228)		(3,145)		908		2,215		3,123
Expected loan losses (recoveries) related to loans sold or repaid in full	—		(164)		(164)		(1,732)		(545)		(2,277)



Reserve for loan losses, end of period	$	4,833	$	3,203	$	8,036	$	4,750	$	6,595	$	11,345

The change in the reserve for expected loan losses during the nine months ended September 30, 2026 is primarily due to (i) changes in operating performance and fair values of the underlying collateral of the Company’s loans receivable and (ii) recoveries related to loan repayments during the nine months ended September 30, 2026, partially offset by reserves recognized on a new and extended secured loan executed during the nine months ended September 30, 2026.