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Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We evaluate our business and make resource allocations based on two operating segments: Real Estate Investments and SHOP. The Real Estate Investments segment consists of our investments in acquiring senior housing and medical facility properties and providing financing to our tenants, operators or other third parties primarily for construction, renovation and expansion projects, funding of working capital or other corporate needs and the acquisition of real estate properties. We lease these properties primarily under triple-net leases and do not have involvement in the operations at the properties. The types of properties we acquire or finance include ILFs, ALFs, EFCs, SLCs, SNFs and HOSPs. Our SHOP segment consists of senior housing communities we own, which are operated on our behalf by third-party managers in exchange for a management fee. Reference Note 5 for additional information on our SHOP operations. Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (“CODM”). Our CODM reviews financial and other performance information quarterly based upon segment NOI. We define NOI as total revenues, less tenant reimbursements and property operating expenses. Our CODM evaluates NOI to make decisions about resource allocations to the segments and to assess our property level performance. The CODM evaluates revenue and operating expenses on a comparative basis for each segment, both sequentially and year-over-year, and also evaluates budget-to-actual variances on a quarterly basis. For our SHOP segment, the CODM reviews additional key performance indicators based on the revenues and operating expenses per occupied or available resident unit and based on revenues and functional expenses by resident. Our non-segment / corporate revenue primarily consists of other income. We do not allocate non-property specific revenues and expenses to our operating segments in determining NOI. Our non-segment / corporate assets primarily include cash and cash equivalents, the corporate office and certain equipment. On August 1, 2025, we entered into a series of concurrent transactions that included the transition of seven properties from the Real Estate Investment segment to the SHOP segment. The operating results of these properties have been reflected in the Real Estate Investment segment prior to August 1, 2025 and in the SHOP segment from August 1, 2025 through September 30, 2025. There were no real estate property transitions in the three and nine months ended September 30, 2024. We do not have any other inter-segment transactions. Reference the “Discovery Transitions” section in Note 3 for additional information on the transitioned properties. On December 31, 2024, we adopted ASU 2023-07, Segment Reporting (TOPIC 280): Improvements to Reportable Segment Disclosures, which required presentation of segment expenses in greater detail. As a result, the segment tables below for the three and nine months ended September 30, 2024 has been recasted to conform with the presentation in the current year tables. The following tables provide information on our operating segments ($ in thousands):
| Three Months Ended September 30, 2025
| Real Estate |  |  |  | Non-Segment / |  |
| Investments |  | SHOP |  | Corporate |  | Total
Rental income | $ | 62,178 |  |  | $ | — |  |  | $ | — |  |  | $ | 62,178 |
Resident fees and services | — |  |  | 21,177 |  |  | — |  |  | 21,177 |
Interest income and other | 6,454 |  |  | — |  |  | 38 |  |  | 6,492 |
Total revenues | 68,632 |  |  | 21,177 |  |  | 38 |  |  | 89,847 |
Utilities | — |  |  | 1,567 |  |  | — |  |  | 1,567 |
Dietary | — |  |  | 1,483 |  |  | — |  |  | 1,483 |
Labor | — |  |  | 7,168 |  |  | — |  |  | 7,168 |
Taxes and insurance | 2,610 |  |  | 2,217 |  |  | — |  |  | 4,827 |
Other senior housing operating expenses 1 | — |  |  | 3,818 |  |  | — |  |  | 3,818 |
NOI | 66,022 |  |  | 4,924 |  |  | 38 |  |  | 70,984 |
Depreciation | 16,470 |  |  | 3,733 |  |  | 13 |  |  | 20,216 |
Interest | — |  |  | — |  |  | 13,766 |  |  | 13,766 |
Legal | — |  |  | — |  |  | 134 |  |  | 134 |
Franchise, excise and other taxes, net | — |  |  | — |  |  | 244 |  |  | 244 |
General and administrative | — |  |  | — |  |  | 6,311 |  |  | 6,311 |
Loan and realty gains, net | (1,979) |  |  | — |  |  | — |  |  | (1,979) |
Gains on sales of real estate properties, net | (113) |  |  | — |  |  | — |  |  | (113) |
Gains from equity method investment | (73) |  |  | — |  |  | — |  |  | (73) |
Net income (loss) | $ | 51,717 |  |  | $ | 1,191 |  |  | $ | (20,430) |  |  | $ | 32,478 |
1 Amount includes management fees, general and administrative costs and marketing expenses.
| Three Months Ended September 30, 2024
| Real Estate |  |  |  | Non-Segment / |  |
| Investments |  | SHOP |  | Corporate |  | Total
Rental income | $ | 63,318 |  |  | $ | — |  |  | $ | — |  |  | $ | 63,318 |
Resident fees and services | — |  |  | 13,771 |  |  | — |  |  | 13,771 |
Interest income and other | 5,743 |  |  | — |  |  | 112 |  |  | 5,855 |
Total revenues | 69,061 |  |  | 13,771 |  |  | 112 |  |  | 82,944 |
Utilities | — |  |  | 1,071 |  |  | — |  |  | 1,071 |
Dietary | — |  |  | 1,118 |  |  | — |  |  | 1,118 |
Labor | — |  |  | 4,304 |  |  | — |  |  | 4,304 |
Taxes and insurance | 2,786 |  |  | 1,611 |  |  | — |  |  | 4,397 |
Other senior housing operating expenses 1 | — |  |  | 2,640 |  |  | — |  |  | 2,640 |
NOI | 66,275 |  |  | 3,027 |  |  | 112 |  |  | 69,414 |
Depreciation | 15,168 |  |  | 2,591 |  |  | 9 |  |  | 17,768 |
Interest | 768 |  |  | — |  |  | 14,171 |  |  | 14,939 |
Legal | — |  |  | — |  |  | 240 |  |  | 240 |
Franchise, excise and other taxes, net | — |  |  | — |  |  | 83 |  |  | 83 |
General and administrative | — |  |  | — |  |  | 4,810 |  |  | 4,810 |
Loan and realty losses, net | 3,434 |  |  | — |  |  | — |  |  | 3,434 |
Gains on sales of real estate properties, net | (102) |  |  | — |  |  | — |  |  | (102) |
Net income (loss) | $ | 47,007 |  |  | $ | 436 |  |  | $ | (19,201) |  |  | $ | 28,242 |
1 Amount includes management fees, general and administrative costs and marketing expenses.
| Nine Months Ended September 30, 2025
| Real Estate |  |  |  | Non-Segment / |  |
| Investments |  | SHOP |  | Corporate |  | Total
Rental income | $ | 201,314 |  |  | $ | — |  |  | $ | — |  |  | $ | 201,314 |
Resident fees and services | — |  |  | 49,333 |  |  | — |  |  | 49,333 |
Interest income and other | 19,043 |  |  | — |  |  | 115 |  |  | 19,158 |
Total revenues | 220,357 |  |  | 49,333 |  |  | 115 |  |  | 269,805 |
Utilities | — |  |  | 3,604 |  |  | — |  |  | 3,604 |
Dietary | — |  |  | 3,632 |  |  | — |  |  | 3,632 |
Labor | — |  |  | 15,791 |  |  | — |  |  | 15,791 |
Taxes and insurance | 8,411 |  |  | 5,168 |  |  | — |  |  | 13,579 |
Other senior housing operating expenses 1 | — |  |  | 9,307 |  |  | — |  |  | 9,307 |
NOI | 211,946 |  |  | 11,831 |  |  | 115 |  |  | 223,892 |
Depreciation | 49,953 |  |  | 9,302 |  |  | 36 |  |  | 59,291 |
Interest | 929 |  |  | — |  |  | 42,175 |  |  | 43,104 |
Legal | — |  |  | — |  |  | 2,655 |  |  | 2,655 |
Franchise, excise and other taxes, net | — |  |  | — |  |  | 756 |  |  | 756 |
General and administrative | — |  |  | — |  |  | 19,265 |  |  | 19,265 |
Proxy contest and related expenses | — |  |  | — |  |  | 1,572 |  |  | 1,572 |
Loan and realty gains, net | (3,386) |  |  | — |  |  | — |  |  | (3,386) |
Gains on sales of real estate properties, net | (337) |  |  | — |  |  | — |  |  | (337) |
Gains from equity method investment | (2,012) |  |  | — |  |  | — |  |  | (2,012) |
Net income (loss) | $ | 166,799 |  |  | $ | 2,529 |  |  | $ | (66,344) |  |  | $ | 102,984 |
Capital expenditures 2 | $ | 145,630 |  |  | $ | 5,070 |  |  | $ | 36 |  |  | $ | 150,736 |
1 Amount includes management fees, general and administrative costs and marketing expenses. 2 Amounts include investments in acquiring, renovating and expanding real estate properties and purchases of equipment.
| Nine Months Ended September 30, 2024
| Real Estate |  |  |  | Non-Segment / |  |
| Investments |  | SHOP |  | Corporate |  | Total
Rental income | $ | 191,265 |  |  | $ | — |  |  | $ | — |  |  | $ | 191,265 |
Resident fees and services | — |  |  | 40,416 |  |  | — |  |  | 40,416 |
Interest income and other | 17,428 |  |  | — |  |  | 317 |  |  | 17,745 |
Total revenues | 208,693 |  |  | 40,416 |  |  | 317 |  |  | 249,426 |
Utilities | — |  |  | 2,917 |  |  | — |  |  | 2,917 |
Dietary | — |  |  | 3,196 |  |  | — |  |  | 3,196 |
Labor | — |  |  | 12,730 |  |  | — |  |  | 12,730 |
Taxes and insurance | 8,321 |  |  | 4,844 |  |  | — |  |  | 13,165 |
Other senior housing operating expenses 1 | — |  |  | 7,807 |  |  | — |  |  | 7,807 |
NOI | 200,372 |  |  | 8,922 |  |  | 317 |  |  | 209,611 |
Depreciation | 45,218 |  |  | 7,517 |  |  | 28 |  |  | 52,763 |
Interest | 2,292 |  |  | — |  |  | 42,371 |  |  | 44,663 |
Legal | — |  |  | — |  |  | 641 |  |  | 641 |
Franchise, excise and other taxes, net | — |  |  | — |  |  | (56) |  |  | (56) |
General and administrative | — |  |  | — |  |  | 15,318 |  |  | 15,318 |
Loan and realty losses, net | 4,550 |  |  | — |  |  | — |  |  | 4,550 |
Gains on sales of real estate properties, net | (1,718) |  |  | — |  |  | — |  |  | (1,718) |
Gains from equity method investment | (402) |  |  | — |  |  | — |  |  | (402) |
Net income (loss) | $ | 150,432 |  |  | $ | 1,405 |  |  | $ | (57,985) |  |  | $ | 93,852 |
Capital expenditures 2 | $ | 39,580 |  |  | $ | 7,512 |  |  | $ | — |  |  | $ | 47,092 |
1 Amount includes management fees, general and administrative costs and marketing expenses. 2 Amounts include investments in acquiring, renovating and expanding real estate properties and purchases of equipment. The following table provides a summary of our total assets by segment ($ in thousands):
| September 30, |  | December 31,
| 2025 |  | 2024
Real Estate Investments segment | $ | 2,190,592 |  |  | $ | 2,325,269 |
SHOP segment | 423,490 |  |  | 270,273 |
Non-segment / corporate | 75,982 |  |  | 18,829 |
Total assets | $ | 2,690,064 |  |  | $ | 2,614,371 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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