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REAL ESTATE INVESTMENTS, NET | 9 Months Ended
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Sep. 30, 2025
Real Estate [Abstract] |
REAL ESTATE INVESTMENTS, NET | REAL ESTATE INVESTMENTS, NET The following table summarizes the Company’s investment in owned properties, and properties held in consolidated joint ventures, held for use as of September 30, 2025 and December 31, 2024 (dollars in thousands):
| September 30, 2025 |  | December 31, 2024
Land | $ | 606,960 |  |  | $ | 367,044 |
Buildings and improvements | 3,036,217 |  |  | 2,220,287 |
Integral equipment, furniture and fixtures | 118,395 |  |  | 113,803 |
Identified intangible assets | 47,046 |  |  | 4,388 |
Real estate investments | 3,808,618 |  |  | 2,705,522 |
Accumulated depreciation and amortization(1) | (536,636) |  |  | (478,782) |
Real estate investments, net | $ | 3,271,982 |  |  | $ | 2,226,740 |
(1) As of September 30, 2025 and December 31, 2024, accumulated depreciation and amortization included $0.9 million and $1.2 million, respectively, of accumulated amortization related to lease intangibles. The lease intangibles are amortized over the term of each related lease. As of September 30, 2025, all of the Company’s owned facilities held for investment were leased to various operators under triple-net leases. All of the triple-net leases contain annual escalators based on the percentage change in the Consumer Price Index (“CPI”) or Retail Price Index (“RPI”) (but not less than zero), some of which are subject to a floor and/or cap, or fixed rent escalators. As of September 30, 2025, eight facilities were held for sale. See Note 5, Impairment of Real Estate Investments, Assets Held for Sale and Asset Sales, for additional information. As of September 30, 2025, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements and assets held for sale, was as follows (dollars in thousands):
Year | Amount
2025 (three months) | $ | 92,895 |
2026 | 375,222 |
2027 | 377,027 |
2028 | 377,695 |
2029 | 380,159 |
2030 | 381,109 |
Thereafter | 3,136,363 |
Total | $ | 5,120,470 |
Tenant Purchase Options Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands):
Asset Type | Properties | Lease Expiration | Option Period Open Date |  | Option Type(1) | Current Cash Rent(2)
SNF | 1 | January 2030 | 02/01/2026 | (3) | A |  | 1,200 |  |
SNF / Campus | 2 | October 2032 | 03/05/2027 | (4) | B |  | 3,367 |  | (8)
SNF / Campus | 2 | May 2034 | 06/01/2026 | (5) | B |  | 3,064 |  | (9)
SNF | 1 | November 2034 | 12/01/2027 | (3) | A |  | 1,100 |  |
SNF | 6 | November 2039 | 12/01/2027 | (6) | B |  | 10,160 |  |
SNF | 1 | August 2040 | 09/01/2028 | (7) | B |  | 741 |  |
(1) Option type includes: A - Fixed base price. B - Fixed capitalization rate on lease revenue. (2) Based on annualized cash revenue for contracts in place as of September 30, 2025. (3) Option window is open until the expiration of the lease term. (4) Option window is open for six months from the option period open date. (5) Option window is open for nine months from the option period open date. (6) Lease agreement provides for the purchase of one to two facilities in each window over four option windows, for a total of six facilities. Each option window opens at the beginning of each of lease years four, five, six, and seven beginning December 1, 2027 and is open for one year. (7) Option window is open for 24 months from the option period open date. (8) Option provides for purchase of any two of the three facilities. The current cash rent shown is an average of the range of $3.2 million to $3.5 million. (9) Option provides for purchase of any one of five facilities in the first option window and another one of five facilities in the second option window beginning June 1, 2027. The current cash rent shown is an average of the range of $2.7 million to $3.5 million. Provided the operator exercises its option to extend the term of the master lease, beginning on June 1, 2035 and ending nine months thereafter, the operator will have an option for all facilities then remaining in the master lease. Rental Income The following table summarizes components of the Company’s rental income (dollars in thousands):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
Rental Income | 2025 |  | 2024 |  | 2025 |  | 2024
Contractual rent due(1) | $ | 96,075 |  |  | $ | 56,356 |  |  | $ | 250,199 |  |  | $ | 164,133 |
Straight-line rent | 3,419 |  |  | (7) |  |  | 5,172 |  |  | (21) |
Amortization of lease incentives | (48) |  |  | (5) |  |  | (145) |  |  | (9) |
Amortization of above and below-market lease intangibles(2) | 4,819 |  |  | 809 |  |  | 6,718 |  |  | 1,959 |
Total | $ | 104,265 |  |  | $ | 57,153 |  |  | $ | 261,944 |  |  | $ | 166,062 |
(1) Includes initial cash rent and tenant operating expense reimbursements, as adjusted for applicable rental escalators and rent increases due to capital expenditures funded by the Company. For tenants on a cash basis, this represents the lesser of the amount that would be recognized on a straight-line basis or cash that has been received. Tenant operating expense reimbursements for the three months ended September 30, 2025 and 2024 were $2.2 million and $1.7 million, respectively. Tenant operating expense reimbursements for the nine months ended September 30, 2025 and 2024 were $6.4 million and $5.1 million, respectively. (2) In connection with lease terminations in August 2025, the Company accelerated the amortization of the remaining below-market lease intangibles of $4.4 million during both the three and nine months ended September 30, 2025. Recent Real Estate Acquisitions The following table summarizes the Company’s real estate acquisitions for the nine months ended September 30, 2025 (dollars in thousands):
Type of Property | Purchase Price(1) |  | Initial Annual Cash Rent(2) |  | Number of Properties |  | Number of Beds/Units(3)
Skilled nursing(4) | $ | 166,537 |  |  | $ | 16,100 |  |  | 11 |  |  | 973 |
U.K. Care Homes(5) | 861,226 |  |  | 65,490 |  |  | 132 |  |  | 7,485 |
Multi-service campuses(6) | 43,783 |  |  | 4,381 |  |  | 2 |  |  | 320 |
Assisted living | 20,637 |  |  | 1,896 |  |  | 1 |  |  | 160 |
Total | $ | 1,092,183 |  |  | $ | 87,867 |  |  | 146 |  |  | 8,938 |
(1) Purchase price includes capitalized acquisition costs. (2) Initial annual cash rent represents initial cash rent for the first twelve months, excluding inflation linked increases. (3) The number of beds/units includes operating beds at the acquisition date. (4) Includes 11 SNFs held through joint ventures. See Note 13, Variable Interest Entities, for additional information. (5) Includes U.K. Care Homes acquired in connection with the Acquisition. See Note 3, Acquisitions, for additional information. On July 31, 2025, the Company swapped 10 U.K. Care Homes for six U.K. Care Homes and received £2.2 million in cash before selling costs. The amounts shown above are inclusive of this asset swap. See Note 5, Impairment of Real Estate Investments, Assets Held for Sale and Asset Sales, for additional information. (6) Includes two multi-service campuses held through joint ventures. See Note 13, Variable Interest Entities, for additional information. Lease Amendments and Terminations New SNF lease and Lease Termination. Effective August 31, 2025, the Company terminated its master lease with a skilled nursing operator and entered into a new triple-net master lease with a new skilled nursing operator with respect to three SNFs and one multi-service campus. The new master lease has an initial term of approximately 15 years with two five-year renewal options and fixed rent escalators. Initial annual cash rent under the new master lease was approximately $3.9 million. Annual cash rent under the terminated master lease was $4.0 million. Covenant Care Lease Transitions. On August 1, 2025, the Company funded approximately $12.3 million (inclusive of transaction costs) in connection with the assignment and termination of multiple lease agreements between the Company and affiliates of Covenant Care California, LLC (“Covenant Care”) and pertaining to eight skilled nursing facilities, two multi-service campuses and one assisted living facility located in California. In connection with the transaction, the Company entered into new long-term leases (or in some instances, amended existing leases with current tenants of the Company) with replacement tenants to continue operating the facilities, as described below. As a result of the subject transaction, annual rent increased approximately $3.9 million. Annual cash rent under the terminated master leases was $13.0 million and, during the three and nine months ended September 30, 2025, the Company accelerated the amortization of the remaining below market lease intangibles of $4.4 million and in-place lease intangibles of $2.4 million. In connection with the transaction, the Company amended one existing triple-net master lease with subsidiaries of The Ensign Group, Inc. (“Ensign”) to add seven skilled nursing, multi-service campus and assisted living properties and extend the lease term. The lease, as amended, has a remaining term of 15 years. Three of the seven facilities will transition upon regulatory approval which is expected to occur in the next twelve months. The applicable Ensign master lease, as amended, includes two five-year renewal options and CPI-based rent escalators. Annual cash rent under the applicable master lease, as amended, increased by approximately $10.0 million. Also in connection with the transaction, the Company, via two consolidated joint ventures, entered into a new triple-net master lease with a skilled nursing operator to include three SNFs. The new master lease commenced August 1, 2025 with an initial term of approximately 10 years, including four five-year renewal options and fixed annual escalators. Initial annual cash rent under the new master lease was $6.4 million. In addition, the Company amended one existing triple-net master lease to add one multi-service campus. Annual cash rent under the applicable master lease, as amended, increased by approximately $0.6 million. Amended Kalesta Lease. On February 28, 2025, the Company acquired one ALF. In connection with the acquisition, the Company amended its existing triple-net master lease with affiliates of Kalesta Healthcare, LLC (“Kalesta”) to include the one ALF and extended the initial lease term. The Kalesta master lease, as amended, had a remaining term at the date of amendment of approximately 15 years. Annual cash rent under the amended Kalesta master lease increased by approximately $1.9 million. Ridgeline Lease Termination and NC Jaybird Lease. Effective December 31, 2024, the Company terminated its master lease with affiliates of Ridgeline Properties, LLC (“Ridgeline”). The Company entered into a new master lease (the “NC Jaybird Lease”) with affiliates of Jaybird Senior Living, Inc. (“Jaybird”) with respect to two ALFs in North Carolina previously leased to Ridgeline. The NC Jaybird Lease commenced on January 1, 2025 with an initial term of approximately 12 years, featuring two five-year renewal options and CPI-based rent escalators. Under the NC Jaybird Lease, Jaybird will receive three months of abated rent, followed by 15 months of rent calculated as a percentage of the tenants’ gross revenue. Subsequently, the next twelve months will have a fixed annual cash rent amount of $0.8 million increasing annually based on CPI. Annual cash rent under the terminated master lease for the two ALFs in North Carolina was $0.8 million. Effective May 1, 2025, two additional ALFs in Michigan and Ohio previously operating under the Ridgeline master lease transferred operations to Jaybird under a separate master lease (“New Jaybird Lease”). The New Jaybird Lease has an initial term of 12 years, featuring two five-year renewal options and CPI-based rent escalators. Under the New Jaybird Lease, Jaybird will receive six months of abated rent, followed by twelve months of rent calculated as a percentage of tenants’ gross revenue, and the following twelve months will have a fixed annual cash rent amount of $1.9 million increasing annually based on CPI. Annual rent under the terminated master lease for the two ALFs was $1.8 million. Four ALFs which were under the Ridgeline master lease are currently held for sale. Amended Eduro Lease and Amended Ensign Lease. On March 1, 2024, operations of two SNFs in Colorado operated by affiliates of Eduro Healthcare, LLC (“Eduro”) were transferred to subsidiaries of Ensign. In connection with the transfer, the Company partially terminated the Eduro master lease and amended one existing triple-net master lease with Ensign to include the two SNFs and extended the initial lease term by 15 years. The applicable Ensign master lease, as amended, had a remaining term at the date of amendment of approximately 20 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent under the applicable Ensign master lease, as amended, increased by approximately $2.1 million and annual cash rent under the Eduro master lease, as amended, decreased by the same amount. New SNF Lease and Lease Termination. On December 31, 2023, the Company terminated its master lease with a skilled nursing operator related to two facilities. Effective January 1, 2024, in connection with the December 31, 2023 lease termination, one SNF was removed from the master lease, was classified as held for sale as of March 31, 2024 and was sold during the three months ended June 30, 2024. See Note 5, Impairment of Real Estate Investments, Assets Held for Sale and Asset Sales, for additional information. In connection with the lease termination, the Company entered into a new triple-net master lease with a new skilled nursing operator with respect to one multi-service campus. The new master lease has an initial term of approximately 10 years with two five-year renewal options and CPI-based rent escalators. Initial annual cash rent under the new master lease was approximately $0.6 million and the master lease provides for partial rent abatement until required authorizations with respect to the ALF portion of the facility are obtained and occupancy levels reach a certain percentage.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
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