XML 37 R22.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Reporting
 9 Months Ended
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 EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$62,178 $— $— $62,178 
Resident fees and services— 21,177 — 21,177 
Interest income and other6,454 — 38 6,492 
Total revenues68,632 21,177 38 89,847 
Utilities— 1,567 — 1,567 
Dietary— 1,483 — 1,483 
Labor— 7,168 — 7,168 
Taxes and insurance2,610 2,217 — 4,827 
Other senior housing operating expenses1
— 3,818 — 3,818 
NOI 66,022 4,924 38 70,984 
Depreciation16,470 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 EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$63,318 $— $— $63,318 
Resident fees and services— 13,771 — 13,771 
Interest income and other5,743 — 112 5,855 
Total revenues69,061 13,771 112 82,944 
Utilities— 1,071 — 1,071 
Dietary— 1,118 — 1,118 
Labor— 4,304 — 4,304 
Taxes and insurance2,786 1,611 — 4,397 
Other senior housing operating expenses1
— 2,640 — 2,640 
 NOI 66,275 3,027 112 69,414 
Depreciation15,168 2,591 9 17,768 
Interest768 — 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, net3,434 — — 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 EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$201,314 $— $— $201,314 
Resident fees and services— 49,333 — 49,333 
Interest income and other19,043 — 115 19,158 
Total revenues220,357 49,333 115 269,805 
Utilities— 3,604 — 3,604 
Dietary— 3,632 — 3,632 
Labor— 15,791 — 15,791 
Taxes and insurance8,411 5,168 — 13,579 
Other senior housing operating expenses1
— 9,307 — 9,307 
 NOI 211,946 11,831 115 223,892 
Depreciation49,953 9,302 36 59,291 
Interest929 — 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 expenditures2
$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 EstateNon-Segment /
InvestmentsSHOPCorporateTotal
Rental income$191,265 $— $— $191,265 
Resident fees and services— 40,416 — 40,416 
Interest income and other17,428 — 317 17,745 
Total revenues208,693 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 expenses1
— 7,807 — 7,807 
NOI 200,372 8,922 317 209,611 
Depreciation45,218 7,517 28 52,763 
Interest2,292 — 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, net4,550 — — 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 expenditures2
$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,
20252024
Real Estate Investments segment$2,190,592 $2,325,269 
SHOP segment423,490 270,273 
Non-segment / corporate75,982 18,829 
Total assets$2,690,064 $2,614,371