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Loans Receivable | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loans Receivable | Loans Receivable The following table summarizes the Company’s loans receivable (in thousands):
| September 30, 2025 |  | December 31, 2024
Secured loans(1) | $ | 580,912 |  |  | $ | 638,482 |
CCRC resident loans | 66,549 |  |  | 61,273 |
Mezzanine loans | 53,120 |  |  | 50,314 |
Unamortized discounts and fees | (15,477) |  |  | (22,380) |
Reserve for loan losses | (11,602) |  |  | (10,499) |
Loans receivable, net | $ | 673,502 |  |  | $ | 717,190 |
_______________________________________ (1)At September 30, 2025, the Company had $121 million of remaining commitments to fund additional principal on loans for outpatient medical and lab capital expenditure projects. At December 31, 2024, the Company had $85 million of remaining commitments to fund additional principal on loans for outpatient medical capital expenditure projects. The Merger On March 1, 2024, upon the consummation of the Merger, the Company acquired nine secured loans with an aggregate outstanding principal balance of $89 million and 10 mezzanine loans with an aggregate outstanding principal balance of $36 million, for a total of $124 million. Typically, each secured loan is secured by a mortgage on a related outpatient medical building, each construction loan (included in secured loans above) is secured by a mortgage on the land and improvements as constructed, generally with guarantees from the borrowers, and each mezzanine loan is collateralized by an ownership interest in the respective borrower. As of the Closing Date, the secured loans had maturities ranging from June 2024 to July 2027 and stated fixed interest rates ranging from 7.00% to 10.00%. The mezzanine loans had maturities ranging from June 2024 to June 2027 and stated fixed interest rates ranging from 8.00% to 10.00%. As of September 30, 2025, unamortized net discounts on the secured loans and mezzanine loans acquired were $0.3 million and $1 million, respectively. As of December 31, 2024, unamortized net discounts on the secured loans and mezzanine loans acquired were $1 million and $2 million, respectively. These discounts are recognized in interest income and other on the Consolidated Statements of Operations using the effective interest rate method over the remaining term of the loans. Sunrise Senior Housing Portfolio Seller Financing In conjunction with the sale of a portfolio of senior housing operating properties (“SHOP”) facilities in January 2021, the Company provided the buyer with financing secured by the buyer’s equity ownership in each property. In February 2024, this secured loan was refinanced with the Company. In connection with the refinance, the Company received a partial principal repayment of $69 million and the maturity date was extended to August 2027. In May 2024, the Company received a partial principal repayment of $5 million in conjunction with the disposition of underlying collateral. At December 31, 2024, this secured loan had an outstanding principal balance of $58 million. In August 2025, the Company received full repayment of the outstanding balance of this seller financing. Other SHOP Seller Financing In conjunction with another SHOP portfolio sale in January 2021, the Company provided the buyer with financing secured by the buyer’s equity ownership in each property. This secured loan was most recently refinanced with the Company in January 2024 at which time the maturity date was extended to January 2025. At December 31, 2024, this secured loan had an outstanding principal balance of $48 million. In January 2025, the Company received full repayment of the outstanding balance of this seller financing. Outpatient Medical Seller Financing In conjunction with the sale of 59 outpatient medical buildings for $674 million in July 2024 and the two outpatient medical buildings for $23 million in November 2024 (see Note 5), 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 has an initial term that matures in July 2026 and includes two 12-month extension options. The interest rate on the seller financing is fixed at 6.0% for the initial term and increases to 6.5% during the optional extension periods. 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. 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. During each of the three and nine months ended September 30, 2024, the Company recognized $1 million of non-cash interest income related to the amortization of this mark-to-market discount. As of September 30, 2025 and December 31, 2024, the unamortized mark-to-market discount was $13 million and $18 million, respectively. 2025 Other Loans Receivable Transactions During the nine months ended September 30, 2025, the Company: (i) entered into one secured loan to provide up to $75 million to fund a portion of the acquisition and redevelopment of a lab building, $28 million of which was funded upon closing of the loan, (ii) entered into an agreement to provide aggregate financing of $41 million to fund the development of an outpatient medical building, $4 million of which was funded upon closing of the loan, (iii) entered into and funded a $4 million loan secured by a land parcel, (iv) entered into and funded a $4 million mezzanine loan to one of its unconsolidated joint ventures, and (v) funded $27 million of principal on its existing secured loans. During the nine months ended September 30, 2025, the Company received full repayment of: (i) the outstanding balance of one $15 million secured loan and (ii) the outstanding balance of one $1 million mezzanine loan. During the nine months ended September 30, 2025, the Company also received partial repayments of $3 million on one secured loan. 2024 Other Loans Receivable Transactions During the year ended December 31, 2024, the Company entered into one construction loan agreement to provide up to $36 million to fund a portion of the construction of an outpatient medical building, none of which was funded upon closing of the loan. Also during the year ended December 31, 2024, the Company entered into and funded one $15 million mezzanine loan. CCRC Resident Loans For certain residents that qualify, CCRCs may offer to lend residents the necessary funds to satisfy the entrance fee requirements so that they are able to move into a community while still continuing the process of selling their previous home. The loans are due upon sale of the resident’s previous home. At September 30, 2025 and December 31, 2024, the Company held $67 million and $61 million, respectively, of such notes receivable. Loans Receivable Internal Ratings 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 that are deemed Performing meet all present contractual obligations, and collection and timing of all amounts owed is reasonably assured. Watch List Loans are defined as loans that do not meet the definition of Performing or Workout. Workout Loans are defined as loans 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. The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and reserves for loan losses, as of September 30, 2025 (in thousands):
Investment Type |  | Year of Origination(1) |  | Total
| 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |
Secured loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing loans |  | $ | 36,445 |  |  | $ | 441,192 |  |  | $ | 53,216 |  |  | $ | 30,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 561,155 |
Watch list loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Workout loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total secured loans |  | $ | 36,445 |  |  | $ | 441,192 |  |  | $ | 53,216 |  |  | $ | 30,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 561,155 |
Current period gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period net write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Mezzanine loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing loans |  | $ | 4,245 |  |  | $ | 13,406 |  |  | $ | 5,139 |  |  | $ | 4,651 |  |  | $ | 7,158 |  |  | $ | 11,199 |  |  | $ | 45,798 |
Watch list loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Workout loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total mezzanine loans |  | $ | 4,245 |  |  | $ | 13,406 |  |  | $ | 5,139 |  |  | $ | 4,651 |  |  | $ | 7,158 |  |  | $ | 11,199 |  |  | $ | 45,798 |
Current period gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period net write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
CCRC resident loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing loans |  | $ | 55,461 |  |  | $ | 10,878 |  |  | $ | 175 |  |  | $ | 35 |  |  | $ | — |  |  | $ | — |  |  | $ | 66,549 |
Watch list loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Workout loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total CCRC resident loans |  | $ | 55,461 |  |  | $ | 10,878 |  |  | $ | 175 |  |  | $ | 35 |  |  | $ | — |  |  | $ | — |  |  | $ | 66,549 |
Current period gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period net write-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
_______________________________________ (1)Additional fundings under existing loans are included in the year of origination of the initial loan. Reserve for Loan Losses 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 rates, capital expenditures, and EBITDA (defined as earnings before interest, tax, and depreciation and amortization), along with other liquidity measures. The Company evaluates, on a monthly basis or immediately upon a significant change in circumstance, its borrowers’ ability to service their obligations with the Company. The following table summarizes the Company’s reserve for loan losses (in thousands):
| September 30, 2025 |  | December 31, 2024
| Secured Loans |  | Mezzanine Loans and Other(1) |  |  |  | Total |  | Secured Loans |  | Mezzanine Loans and Other(1) |  |  |  | Total
Reserve for loan losses, beginning of period | $ | 5,574 |  |  | $ | 4,925 |  |  |  |  | $ | 10,499 |  |  | $ | 2,830 |  |  | $ | — |  |  |  |  | $ | 2,830 |
Provision for expected loan losses (recoveries) on funded loans receivable | 1,153 |  |  | 1,581 |  |  |  |  | 2,734 |  |  | 2,744 |  |  | 4,925 |  |  |  |  | 7,669 |
Expected loan losses (recoveries) related to loans sold or repaid | (1,460) |  |  | (171) |  |  |  |  | (1,631) |  |  | — |  |  | — |  |  |  |  | — |
Reserve for loan losses, end of period | $ | 5,267 |  |  | $ | 6,335 |  |  |  |  | $ | 11,602 |  |  | $ | 5,574 |  |  | $ | 4,925 |  |  |  |  | $ | 10,499 |
_______________________________________ (1)Includes CCRC resident loans. Additionally, at September 30, 2025 and December 31, 2024, a liability of $1.6 million and $2.9 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities. The change in the reserve for expected loan losses during the nine months ended September 30, 2025 is primarily due to reserves recognized on new and amended loans during the nine months then ended, partially offset by recoveries related to loans repaid during the same period.

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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