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Note 7 - Long-term Leases

6 Months Ended

Jun. 30, 2024

Lessee, Operating and Finance Leases [Text Block]

Note 7 – Long-Term Leases

Operating Leases

At June 30, 2024, we lease from NHI the real property of 28 skilled nursing facilities, five assisted living centers and three independent living centers under one lease agreement. As part of the lease agreement, we sublease four Florida skilled nursing facilities to a third-party operator. The lease includes base rent plus a percentage rent. The annual base rent is $32,625,000 in 2024, $32,225,000 in 2025, and $31,975,000 in 2026 with the lease term expiring in December 2026. The percentage rent is based on a quarterly calculation of revenue increases and is payable on a quarterly basis. Total facility rent expense to NHI was $9,814,000 and $9,124,000 for the three months ended June 30, 2024 and 2023, respectively. Total facility rent expense to NHI was $19,286,000 and $18,419,000 for the six months ended June 30, 2024 and 2023, respectively.

Minimum Lease Payments

The following table summarizes the maturity of our operating lease liabilities as of June 30, 2024 (in thousands):

	Operating Leases
2025	$	34,407
2026		33,695
2027		16,985
2028		524
2029		219
Thereafter		87
Total minimum lease payments		85,917
Less: amounts representing interest		(6,652	)
Present value of future minimum lease payments		79,265
Less: current portion		(30,233	)
Noncurrent lease liabilities	$	49,032