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ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2025

Receivables [Abstract]

Schedule of expected credit loss

A rollforward of our allowance for credit losses for the nine months ended September 30, 2025 is as follows:


Rating		Financial Statement Line Item	Allowance for Credit Loss as of December 31, 2024			Provision (Recovery) for Credit Loss for the nine months ended September 30, 2025⁽¹⁾			Write-offs charged against allowance for the nine months ended September 30, 2025			Other reductions to the allowance for the nine months ended September 30, 2025			Allowance for Credit Loss as of September 30, 2025
			(in thousands)
1		Real estate loan receivable	$	312		$	(69)		$	—		$	—		$	243
2		Real estate loans receivable		492			(241)			—			—			251
3		Real estate loans receivable		10,991			(387)			—			—			10,604
4		Real estate loans receivable		22,528			(3,055)			—			—			19,473
5		Real estate loans receivable		25,476			4,396			—			—			29,872
6		Real estate loans receivable		11,450			(832)			—			—			10,618
		Sub-total		71,249			(188)	⁽²⁾		—			—			71,061

5		Investment in direct financing leases		1,605			—			—			(1,605)	⁽³⁾		—
		Sub-total		1,605			—			—			(1,605)			—

2		Non-real estate loans receivable		37			(16)			—			—			21
3		Non-real estate loans receivable		1,868			(624)			—			—			1,244
4		Non-real estate loans receivable		2,268			(1,195)			—			—			1,073
5		Non-real estate loans receivable		43,287			(1,415)			—			—			41,872
6		Non-real estate loans receivable		75,335			3,801			(21,509)	⁽⁴⁾		—			57,627
		Sub-total		122,795			551	⁽²⁾		(21,509)			—			101,837

2		Unfunded real estate loan commitments		1			(1)			—			—			—
3		Unfunded real estate loan commitments		461			(21)			—			—			440
4		Unfunded real estate loan commitments		40			110			—			—			150
5		Unfunded real estate loan commitments		1,767			(1,560)			—			—			207
2		Unfunded non-real estate loan commitments		13			(10)			—			—			3
3		Unfunded non-real estate loan commitments		183			(112)			—			—			71
4		Unfunded non-real estate loan commitments		433			(39)			—			—			394
6		Unfunded non-real estate loan commitments		65			(65)			—			—			—
		Sub-total		2,963			(1,698)			—			—			1,265

		Total	$	198,612		$	(1,335)		$	(21,509)		$	(1,605)		$	174,163

(1)

During the nine months ended September 30, 2025, we received proceeds of $2.0 million from the liquidating trust related to the $25.0 million DIP facility to Gulf Coast Health Care LLC (“Gulf Coast”) and proceeds of $0.3 million related to one other real estate loan, which resulted in a recovery for credit losses of $2.3 million. Both of these loans and related reserves were previously written off, so the $2.3 million aggregate recovery is not included in the rollforward above.

(2)

These amounts include cash recoveries of $4.3 million related to interest payments received on loans that are written down to fair value and are being accounted for under the cost recovery method in which any payments received are applied directly against the principal balance outstanding. This amount also includes $2.1 million related to principal payments received on loans that were fully reserved.

(3)	Represents the allowance for credit losses related to an investment in a direct financing lease that was reclassified to real estate assets in connection with the termination of the lease in the first half of 2025 as discussed further in Note 2 – Real Estate Assets.

(4)

Amount reflects the write-off of the reserves associated with the $10.0 million DIP financing and the $8.3 million term loan to LaVie (which were both previously fully reserved) that were discharged as part of the LaVie plan of reorganization that was made effective on June 1, 2025, along with one other non-real estate loan that was previously fully reserved.

A rollforward of our allowance for credit losses for the nine months ended September 30, 2024 is as follows:


Rating		Financial Statement Line Item	Allowance for Credit Loss at December 31, 2023			Provision (Recovery) for Credit Loss for the nine months ended September 30, 2024⁽¹⁾			Write-offs charged against allowance for the nine months ended September 30, 2024			Allowance for Credit Loss as of September 30, 2024
			(in thousands)
1		Real estate loans receivable	$	1,501		$	(959)		$	—		$	542
2		Real estate loans receivable		291			159			—			450
3		Real estate loans receivable		12,635			(2,025)			—			10,610
4		Real estate loans receivable		65,113			(40,676)	⁽²⁾		—			24,437
5		Real estate loans receivable		—			26,453	⁽²⁾		—			26,453
6		Real estate loans receivable		11,450			—			—			11,450
		Sub-total		90,990			(17,048)			—			73,942

5		Investment in direct financing leases		2,489			(839)			—			1,650
		Sub-total		2,489			(839)			—			1,650

2		Non-real estate loans receivable		1,151			(672)			—			479
3		Non-real estate loans receivable		3,903			(1,945)			—			1,958
4		Non-real estate loans receivable		720			1,074			—			1,794
5		Non-real estate loans receivable		43,404			4,254			—			47,658
6		Non-real estate loans receivable		72,453			9,569			(7,632)			74,390
		Sub-total		121,631			12,280	⁽³⁾		(7,632)			126,279

2		Unfunded real estate loan commitments		10			(10)			—			—
3		Unfunded real estate loan commitments		335			(13)			—			322
4		Unfunded real estate loan commitments		4,314			(4,253)	⁽²⁾		—			61
5		Unfunded real estate loan commitments		—			2,364	⁽²⁾		—			2,364
2		Unfunded non-real estate loan commitments		692			(585)			—			107
3		Unfunded non-real estate loan commitments		46			96			—			142
4		Unfunded non-real estate loan commitments		63			17			—			80
5		Unfunded non-real estate loan commitments		1,594			(1,594)			—			—
6		Unfunded non-real estate loan commitments		—			22			—			22
				7,054			(3,956)			—			3,098

		Total	$	222,164		$	(9,563)		$	(7,632)		$	204,969

(1)

During the nine months ended September 30, 2024, we received proceeds of $5.0 million from the liquidating trust related to the $25.0 million DIP facility to Gulf Coast, which resulted in a recovery for credit losses of $5.0 million that is not included in the rollforward above since we had previously written-off the loan balance and related reserve.

(2)	Amount reflects the movement of reserves associated with the Maplewood Revolver due to an adjustment to the internal risk rating on the loan from 4 to 5 during the first quarter of 2024. See Note 5 – Real Estate Loans Receivable for additional information on the Maplewood Revolver.

(3)

The amount includes cash recoveries of $3.5 million related to interest payments received on loans that are written down to fair value and are being accounted for under the cost recovery method in which any payments received are applied directly against the principal balance outstanding. This amount also includes $0.6 million related to principal payments received on loans that were fully reserved.

Schedule by segment balance by vintage and credit quality indicator

A summary of our amortized cost basis by year of origination and credit quality indicator is as follows:


Rating	Financial Statement Line Item	2025		2024		2023		2022		2021		2020		2019 & older		Revolving Loans		Balance as of September 30, 2025
		(in thousands)
1	Real estate loans receivable	$	—	$	—	$	—	$	20,000	$	—	$	—	$	—	$	—	$	20,000
2	Real estate loans receivable		—		29,700		—		—		—		21,325		—		—		51,025
3	Real estate loans receivable		34,787		246,752		167,318		24,600		72,420		—		—		—		545,877
4	Real estate loans receivable		19,289		80,279		82,688		—		31,730		72,359		307,373		—		593,718
5	Real estate loans receivable		—		—		—		—		—		—		—		263,580		263,580
6	Real estate loans receivable		—		—		—		—		—		—		12,090		—		12,090
	Sub-total		54,076		356,731		250,006		44,600		104,150		93,684		319,463		263,580		1,486,290

2	Non-real estate loans receivable		—		—		—		—		—		—		—		16,439		16,439
3	Non-real estate loans receivable		1,993		3,555		75,323		15,137		—		—		2,752		46,534		145,294
4	Non-real estate loans receivable		11,404		4,411		—		—		—		—		125,736		29,443		170,994
5	Non-real estate loans receivable		500		6,000		—		—		—		—		42,088		1,500		50,088
6	Non-real estate loans receivable		—		6,386		1,500		24,457		—		—		26,362		—		58,705
	Sub-total		13,897		20,352		76,823		39,594		—		—		196,938		93,916		441,520

	Total	$	67,973	$	377,083	$	326,829	$	84,194	$	104,150	$	93,684	$	516,401	$	357,496	$	1,927,810

	Year to date gross write-offs	$	—	$	—	$	(3,658)	$	—	$	(7,851)	$	—	$	—	$	(10,000)	$	(21,509)