v3.25.3
Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has two operating and reportable business segments: OMFs and SHOPs. The disclosures below for the three months ended September 30, 2025 and 2024 are presented for the Company’s two reportable business segments for management and internal financial reporting purposes.
The Company’s CODM is provided financial data on a periodic basis which includes net operating income (“NOI”) for each of the reportable business segments. This serves as the profit or loss measure used by the CODM for performance assessment and resource allocation.
The Company’s CODM is its Chief Executive Officer. The Company, through its CODM, evaluates performance and makes resource allocations based on its two business segments. The OMF segment primarily consists of facilities leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses as well as seniors housing properties, hospitals and inpatient rehabilitation facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses. The SHOP segment consists of direct investments in seniors housing properties, primarily providing assisted living, independent living and memory care services, which are operated through engaging independent third-party operators.
Net Operating Income
The Company evaluates the performance of the combined properties in each segment using NOI, which is defined as total revenues from tenants, less property operating costs. As such, this excludes all other items of expense and income included in the consolidated financial statements in calculating consolidated income (loss) before income taxes. The Company uses NOI to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that NOI is useful as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from consolidated income (loss) before income taxes.
NOI excludes certain components from consolidated income (loss) before income taxes in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently.
The following table presents the operating financial information for the Company’s two business segments for the three months ended September 30, 2025 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
OMFs(1):
Revenue from tenants$29,022 $34,303 $88,908 $103,573 
Less: Property operating and maintenance8,391 10,656 28,219 30,083 
NOI$20,631 $23,647 $60,689 $73,490 
SHOPs:
Revenue from tenants$57,004 $54,637 $168,893 $162,483 
Less: Property operating and maintenance
Compensation related expenses(2)
27,022 27,565 80,871 83,413 
Other property operating and maintenance(3)
18,432 18,186 56,790 53,061 
NOI$11,550 $8,886 $31,232 $26,009 
(1) The CODM uses NOI to evaluate performance of the OMF segment as a large portion of the property-level operating expenses is recovered from tenants.
(2) Includes costs incurred for salaries, benefits and other labor related costs.
(3) Includes costs incurred for supplies, management fees, taxes, insurance and overhead.
Reconciliation to Consolidated Financial Information
A reconciliation of the total reportable segments’ NOI to consolidated net loss attributable to common stockholders is presented below:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Net loss attributable to common stockholders:
Net Operating Income:
OMFs$20,631 23,647 $60,689 73,490 
SHOPs11,550 8,886 31,232 26,009 
Total NOI
32,181 32,533 91,921 99,499 
Impairment charges(6,641)(8,829)(33,752)(11,498)
Operating fees to related parties
— (6,391)— (19,181)
Termination fees to related parties
— (8,409)— (106,650)
Acquisition and transaction related(91)(5,187)(639)(5,686)
General and administrative(5,671)(5,502)(15,642)(16,938)
Depreciation and amortization(18,029)(20,720)(60,274)(63,386)
Gain (loss) on sale of real estate investment
626 1,579 28,267 1,354 
Interest expense(15,060)(18,007)(45,425)(52,142)
Interest and other income
294 548 512 1,077 
Gain on extinguishment of debt
— — 257 — 
Gain on non-designated derivatives
(77)(2,384)(46)449 
Loss before income taxes
(12,468)(40,769)(34,821)(173,102)
Income tax expense (benefit)
(66)— (60)(135)
Net loss
(12,534)(40,769)(34,881)(173,237)
Net loss (gain) attributable to non-controlling interests
(21)77 (44)529 
Preferred stock distributions
(3,326)(3,450)(10,162)(10,350)
Net loss attributable to common stockholders$(15,881)$(44,142)$(45,087)$(183,058)
The following table reconciles investments in real estate, net by segment to consolidated total assets as of the periods presented:
(In thousands)September 30, 2025December 31, 2024
ASSETS
Investments in real estate, net:
OMF Segment$834,441 $1,010,323 
SHOP Segment705,832 758,643 
Total investments in real estate, net1,540,273 1,768,966 
Assets held-for-sale
6,215 — 
Cash and cash equivalents47,059 21,652 
Restricted cash55,477 52,443 
Derivative assets, at fair value8,415 19,206 
Straight-line rent receivable, net21,069 22,841 
Operating lease right-of-use assets7,280 7,480 
Prepaid expenses and other assets24,972 26,316 
Deferred costs, net18,055 21,269 
Accounts receivable, net
10,242 5,850 
Total assets$1,739,057 $1,946,023