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Note 7 - Long-term Leases

3 Months Ended

Mar. 31, 2025

Lessee, Operating and Finance Leases [Text Block]

Note 7 – Long-Term Leases

Operating Leases

At March 31, 2025, 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 $32,225,000 in 2025 and $31,975,000 in 2026 with the lease term expiring in 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 $9,911,000 and $9,472,000 for the three months ended March 31, 2025 and 2024, respectively.

Minimum Lease Payments

The following table summarizes the maturity of our operating lease liabilities as of March 31, 2025 (in thousands):

	Operating Leases
2026	$	35,718
2027		27,047
2028		2,193
2029		1,748
2030		1,539
Thereafter		11,416
Total minimum lease payments		79,661
Less: amounts representing interest		(10,740	)
Present value of future minimum lease payments		68,921
Less: current portion		(32,109	)
Noncurrent lease liabilities	$	36,812