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Note 7 - Long-term Leases

6 Months Ended

Jun. 30, 2025

Lessee, Operating and Finance Leases [Text Block]

Note 7 – Long-Term Leases

Operating Leases

At June 30, 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 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 $9,903,000 and $9,814,000 for the three months ended June 30, 2025 and 2024, respectively. Total facility rent expense to NHI was $19,814,000 and $19,286,000 for the six months ended June 30, 2025 and 2024, respectively.

Minimum Lease Payments

The following table summarizes the maturity of our operating lease liabilities as of June 30, 2025 (in thousands):

	Operating Leases
2026	$	35,736
2027		19,031
2028		2,155
2029		1,777
2030		1,575
Thereafter		11,061
Total minimum lease payments		71,335
Less: amounts representing interest		(8,722	)
Present value of future minimum lease payments		62,613
Less: current portion		(32,729	)
Noncurrent lease liabilities	$	29,884