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Investment Activity (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Business Acquisitions, by Acquisition

Since January 1, 2023, we have completed the following real estate investments ($ in thousands):


Operator	Date	Properties	Asset Class	Land		Building and Improvements		Total
Silverado Senior Living	Q1 2023	2	ALF	$	3,894	$	33,599	$	37,493
Bickford	Q1 2023	1	ALF	1,746		15,542		17,288
				$	5,640	$	49,141	$	54,781

Schedule of Asset Disposition

During the six months ended June 30, 2023, we completed the following dispositions of real estate properties within our Real Estate Investments portfolio as described below ($ in thousands):


Operator	Date	Properties	Asset Class	Net Proceeds		Net Real Estate Investment		Gain		Impairment2
BAKA Enterprises, LLC1,3	Q1 2023	1	ALF	$	7,478	$	7,505	$	—	$	(27)
Bickford1	Q1 2023	1	ALF	2,553		1,421		1,132		—
Chancellor Senior Living1,3	Q2 2023	1	ALF	2,355		1,977		378		—
Milestone Retirement1,3,4	Q2 2023	2	ALF	3,803		3,934		—		(131)
Chancellor Senior Living1,3	Q2 2023	1	ALF	7,633		6,140		1,493		—
Milestone Retirement1,3,4	Q2 2023	1	ALF	1,602		1,452		150		—
Chancellor Senior Living	Q2 2023	1	ALF	23,724		14,476		9,248		—
				$	49,148	$	36,905	$	12,401	$	(158)

1 Assets were previously classified as “Assets held for sale” in the Consolidated Balance Sheet at December 31, 2022.

2 Impairments are included in “Loan and realty losses (gains)” in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023.

3 Total impairment charges previously recognized on these properties were $13.3 million in the aggregate.

4 The Company provided aggregate financing of approximately $0.7 million, net of discounts, on these transactions in the form of notes receivable.

Disclosure of Long-Lived Assets Held-for-sale

The following is a summary of our assets held for sale ($ in thousands):


	As of	As of
	June 30, 2023	December 31, 2022
Number of properties	5	13
Real estate, net	$13,167	$43,302

Schedule of Tenant Concentrations

The following table contains information regarding concentration in our Real Estate Investments portfolio of tenants or affiliates of tenants, that exceed 10% of total revenues for the six months ended June 30, 2023 and 2022, excluding $2.6 million for our corporate office, a credit loss reserve of $15.0 million and $341.0 million in assets for the SHOP segment ($ in thousands):


	as of June 30, 2023					Revenues1
	Asset	Gross Real		Notes		Six Months Ended June 30,
	Class	Estate		Receivable		2023			2022

Senior Living Communities, LLC (“Senior Living”)	EFC	$	573,631	$	48,950	$	25,658	16%	$	25,549	19%
Bickford2	ALF	430,217		16,875		19,977		12%	N/A		N/A
National HealthCare Corporation (“NHC”)	SNF	133,770		—		18,983		12%	18,597		14%
Holiday Retirement3	ILF	—		—		N/A		N/A	16,680		13%
All others, net	Various	1,292,606		173,044		66,323		41%	53,214		41%
Escrow funds received from tenants
for property operating expenses	Various	—		—		5,830		4%	5,195		4%
		$	2,430,224	$	238,869	136,771			119,235
Resident fees and services4						23,493		15%	11,992		9%
						$	160,264		$	131,227

1 Includes interest income on notes receivable and rental income from properties classified as held for sale.

2 Revenues are included in “All others”, net since they are less than 10% for the six months ended June 30, 2022.

3 Revenues for the six months ended June 30, 2022 include an $8.8 million lease deposit recognized in the first quarter of 2022 and $6.9 million in escrow cash received in the second quarter of 2022.

4 There is no tenant concentration in resident fees and services because these agreements are with individual residents.

Schedule of Future Minimum Base Rent

Future minimum lease payments to be received by us under our operating leases at June 30, 2023, are as follows ($ in thousands):


Remainder of 2023	$	112,857
2024	236,575
2025	240,463
2026	246,996
2027	201,486
2028	195,894
Thereafter	658,406
	$	1,892,677

Schedule of Fixed and Variable Lease Payments

The table below indicates the revenue recognized as a result of fixed and variable lease escalators ($ in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Lease payments based on fixed escalators	$	53,538	$	58,648	$	112,827	$	118,115
Lease payments based on variable escalators	2,103		1,258		3,696		2,486
Straight-line rent income, net of write-offs	2,875		(14,915)		4,972		(13,836)
Escrow funds received from tenants for property operating expenses	3,212		2,157		5,830		5,195
Amortization and write-off of lease incentives	(776)		(7,166)		(1,075)		(7,419)
Rental income	$	60,952	$	39,982	$	126,250	$	104,541