Real Estate Investments, Net

12 Months Ended

Dec. 31, 2025

Property Acquisitions

The Company invests in healthcare-related facilities, primarily SHOPs and OMFs, which expand and diversify its portfolio and revenue base. During the year ended December 31, 2025, the Company did not acquire any significant assets. During the year ended December 31, 2024, the Company acquired four single-tenant OMFs for an aggregate contract purchase price of $12.6 million. The acquisitions were accounted for as asset acquisitions.

The following table presents the allocation of the assets acquired and liabilities assumed during the year ended December 31, 2024 (dollars in thousands):


	Year ended December 31, 2024

Real estate investments, at cost:
Land	$	1,266
Buildings, fixtures and improvements	9,302

Total tangible assets	10,568
Acquired intangibles:
In-place leases and other intangible assets (1)	2,388
Market lease and other intangible assets (1)	150

Total intangible assets and liabilities	2,538
Mortgage notes payable assumed, net	(7,500)

Cash paid for real estate investments, including acquisitions	$	5,606

__________

(1)Weighted-average remaining amortization periods for in-place leases and above-market leases acquired were both 13.6 years as of December 31, 2024.

Significant Tenants

As of December 31, 2025, 2024 and 2023, the Company had one tenant (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or greater of total annualized rental income on a straight-line basis for the portfolio. Annualized rental income consists of: (i) for the OMF segment, annualized December 2025 rental income on a straight-line basis for the leases in place as of December 31, 2025, which includes tenant concessions such as free rent, as applicable, and (ii) for the SHOP segment, annualized gross revenue for the fourth quarter of 2025. The following table lists the states where the Company had concentrations of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of December 31, 2025, 2024 and 2023:


	December 31,
State	2025	2024	2023
Florida	22.3%	21.2%	19.9%
Pennsylvania	11.2%	11.6%	10.6%
Iowa	11.0%	*	*
Georgia	10.6%	10.4%	*

__________

* Not greater than 10%.

Intangible Assets and Liabilities

Acquired intangible assets and liabilities consisted of the following as of the periods presented (dollars in thousands):


	December 31, 2025							December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization Period
Intangible assets:
In-place lease intangible assets	$	228,208	$	194,822	$	33,386	5.1 years	$	260,534	$	214,961	$	45,573	5.3 years
Above-market lease intangible assets	11,235		10,250		985		4.5 years	14,446		12,819		1,627		5.0 years
Other intangible assets	7,101		1,087		6,014		63.8 years	9,467		1,293		8,174		66.3 years
Total acquired intangible assets	$	246,544	$	206,159	$	40,385	6.7 years	$	284,447	$	229,073	$	55,374	7.3 years
Intangible liabilities:
Below-market lease intangible liabilities	$	19,626	$	14,775	$	4,851	6.4 years	$	22,789	$	16,664	$	6,125	6.9 years

The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place lease intangible and other intangible assets, amortization and accretion of above- and below-market lease intangible assets and liabilities, net and the amortization of above- and below-market ground leases, for the periods presented (dollars in thousands):


	Year ended December 31,
	2025		2024		2023
Amortization of in-place lease intangible and other intangible assets (1)	$	8,940	$	12,258	$	13,080
Accretion of above- and below-market lease intangibles, net (2)	(582)		(1,420)		(1,050)
Amortization of above- and below-market ground leases, net (3)	2,473		176		159

__________

(1)Reflected within depreciation and amortization expense.

(2)Reflected within revenue from tenants.

(3)Reflected within property operating and maintenance expense.

The following table provides the projected amortization and adjustments to revenue from tenants for the next five years (dollars in thousands):


	2026		2027		2028		2029		2030
In-place lease intangible assets	$	7,295	$	5,009	$	3,701	$	3,256	$	2,605
Other intangible assets	1		1		1		1		—
Total to be added to amortization expense	$	7,296	$	5,010	$	3,702	$	3,257	$	2,605

Above-market lease intangible assets	$	(239)	$	(176)	$	(138)	$	(73)	$	(69)
Below-market lease intangible liabilities	925		650		586		545		419
Total to be added to revenue from tenants	$	686	$	474	$	448	$	472	$	350

Dispositions

Year Ended December 31, 2025

During the year ended December 31, 2025, the Company disposed of seven SHOPs and 18 OMFs for an aggregate contract sales price of $202.5 million, which resulted in an aggregate net gain on sale of $27.8 million.

Year Ended December 31, 2024

During the year ended December 31, 2024, the Company disposed of two SHOPs, 12 OMFs and one land parcel for an aggregate contract sales price of $118.1 million, which resulted in an aggregate net gain on sale of $9.3 million.

Year Ended December 31, 2023

During the year ended December 31, 2023, the Company disposed of four SHOPs and one OMF for an aggregate contract sales price of $13.8 million, which resulted in an aggregate net loss on sale of $0.3 million.

Impairment Charges

The following table presents impairment charges by segment for the periods presented (dollars in thousands):


	Year ended December 31,
	2025		2024		2023
SHOP	$	37,882	$	13,643	$	2,122
OMF	7,032		11,238		2,554
Total impairment charges	$	44,914	$	24,881	$	4,676

For the year ended December 31, 2025, the $44.9 million impairment consisted of: (i) $33.7 million impairment charges on properties that were impaired to their contractual sales price as determined by purchase and sale agreements or estimated fair value prior to being sold and (ii) $11.2 million impairment charges on properties that were impaired to their estimated fair value due to a change in their expected future cash flows.

For the year ended December 31, 2024, the impairment charges relate to properties that were impaired to their contractual sales price as determined by purchase and sale agreements prior to being sold.

For the year ended December 31, 2023, the impairment charges relate to properties that were actively marketed for sale and impaired to their estimated fair values.