XML 22 R11.htm IDEA: XBRL DOCUMENT

ASSETS HELD FOR SALE, DISPOSITIONS AND IMPAIRMENTS

6 Months Ended

Jun. 30, 2025

ASSETS HELD FOR SALE, DISPOSITIONS AND IMPAIRMENTS [Abstract]

ASSETS HELD FOR SALE, DISPOSITIONS AND IMPAIRMENTS

NOTE 3 – ASSETS HELD FOR SALE, DISPOSITIONS AND IMPAIRMENTS

Periodically we sell facilities to reduce our exposure to certain operators, geographies and non-strategic assets or due to the exercise of a tenant purchase option.

The following is a summary of our assets held for sale:


	June 30,		December 31,
	2025		2024
Number of facilities held for sale		2		12
Amount of assets held for sale (in thousands)	$	12,358	$	56,194

During the second quarter of 2025, we reclassified two SNFs to assets held for sale as a result of an operator’s exercise of a purchase option. The net book value of the facilities exceeded the estimated fair value, based on the estimated proceeds from the sale, and as a result, an impairment of $6.3 million was recorded in connection with reclassifying these assets to held for sale.

Asset Sales

During the three and six months ended June 30, 2025, we sold seven facilities (six SNFs and one ALF) and 34 facilities (32 SNFs and two ALFs) for $62.1 million and $183.0 million in net cash proceeds, respectively. As a result of these sales, we recognized a net gain of $22.9 million and $33.0 million, respectively. As part of a 12-facility sale recognized during the six months ended June 30, 2025, Omega may be entitled to additional consideration contingent upon the occurrence of certain future events that are outside of our control. Given these events are not within Omega’s control, the uncertainty surrounding the timing of the events and the probability of collection, we did not recognize any additional contingent consideration as of the legal sale date.

During the three and six months ended June 30, 2024, we sold five SNFs and nine SNFs for approximately $34.8 million and $44.9 million in net cash proceeds, respectively. As a result of these sales, we recognized a net gain of $12.9 million and $11.5 million, respectively.

Sales Not Recognized

As of June 30, 2025 and December 31, 2024, three facility sales had not been recognized due to not meeting the contract criteria under ASC 610-20 at the applicable legal sale date. As of June 30, 2025 and December 31, 2024, we had $19.7 million and $20.1 million, respectively, of real estate assets – net recorded on our Consolidated Balance Sheets related to these unrecognized sales. During the three and six months ended June 30, 2025, we received interest of $1.6 million and $2.7 million, respectively, from seller financing related to unrecognized sales. During the three and six months ended June 30, 2024, we received interest of $0.3 million and $0.6 million, respectively, from seller financing related to unrecognized sales. The interest received from these seller financings was deferred and recorded as a contract liability within accrued expenses and other liabilities on our Consolidated Balance Sheets.

Real Estate Impairments

During the three and six months ended June 30, 2025, we recorded impairments on three and four facilities of $14.2 million and $15.4 million, respectively. Of the $15.4 million, $9.1 million related to two held for use facilities and $6.3 million related to two facilities that were classified as held for sale.

During the three and six months ended June 30, 2024, we recorded impairments on four and seven facilities of $8.2 million and $13.5 million, respectively. Of the $13.5 million, $8.1 million related to five held for use facilities and $5.4 million related to two facilities that were classified as held for sale.

To estimate the fair value of the facilities for the impairments noted above, we utilized a market approach that considered binding sale agreements (a Level 1 input) or non-binding offers from unrelated third parties and/or broker quotes (a Level 3 input).