Summary of components of our rental income

The following table summarizes components of our rental income for the three months ended March 31, 2025 and 2024 (in thousands):


	March 31,
Rental Income		2025			2024
Contractual cash rental income	$	29,623	⁽¹⁾	$	30,951
Variable cash rental income ⁽²⁾		3,090			3,381
Straight-line rent		(578)			(550)
Adjustment of lease incentives and rental income		(492)	⁽³⁾		—
Amortization of lease incentives		(199)			(233)
Total	$	31,444		$	33,549

(1)	Decreased primarily due to a one-time revenue received in 2024 related to the repayment of $2,377 in rent credit and lower rent due to property sales, partially offset by rent increases from fair-market rent resets, annual escalations and amendments.

(2)	The variable rental income includes reimbursement of real estate taxes by our lessees.

(3)	In connection with the termination of two existing leases with the same operator, and combing them into a single master lease, we wrote-off a straight-line rent receivable of $243 and a lease incentive balance of $249.

Schedule of properties held-for-sale

The following summarizes our held-for-sale properties as of March 31, 2025 and December 31, 2024 (dollar amounts in thousands):

Type

Number

of

Gross

Accumulated

State

Property

Properties

Beds/units

Investment

Depreciation

At March 31, 2025

CA/FL/VA

SNF

⁽¹⁾

7

896

$

71,742

$

(29,284)

At December 31, 2024

OK

ALF

⁽²⁾

1

29

$

2,016

$

(1,346)

(1)

During the three months ended March 31, 2025, we engaged a broker to sell seven SNFs under a master lease, following the operator’s election not to exercise the renewal option available under the master lease. The master lease covers SNFs in California (1), Florida (2) and Virginia (4) and matures in January 2026. At March 31, 2025, these centers met the criteria under GAAP as held-for-sale. The operator is obligated to pay rent on the portfolio through maturity and is current on rent obligations through May 2025.

(2)	This community was sold during the first quarter of 2025. Upon sale, the community was removed from a master lease covering five ALFs in Oklahoma and rent under the master lease was not reduced as a result of the sale.

Schedule of developments and improvement projects

During the three months ended March 31, 2025 and 2024, we invested in the following capital improvement projects (in thousands):


		Three Months Ended March 31,
Type of Property	2025		2024
Assisted Living Communities	$	966	$	1,133
Skilled Nursing Centers		360		196
Total	$	1,326	$	1,329

Schedule of investments in financing receivables

The following tables provide information regarding our investments in financing receivables (dollar amounts in thousands):


									Type	Number	Number		Investment
Interest		Investment				Gross		LTC	of	of	of		per
Rate		Year	Maturity	State		Investments		Investment	Properties	Properties	Beds/Units		Bed/Unit
7.25%	⁽¹⁾	2022	2032	FL	$	76,581	$	62,256	SNF	3	299	$	256.12
7.25%	⁽²⁾	2023	2033	NC		121,419		118,503	ALF/MC	11	523	$	232.16
7.25%	⁽³⁾	2024	2034	NC/SC		122,460		64,450	ILF/ALF/MC	13	523	$	234.15
7.25%	⁽⁴⁾	2024	2034	NC		41,000		37,985	ALF	4	217	$	188.94
					$	361,460	$	283,194		31	1,562

(1)	A purchase option available to the seller-lessee is exercisable at the beginning of the fourth lease year (2025) through the end of the fifth lease year (2027).

(2)	The seller-lessee has the option to buy the properties in multiple tranches and in serial closings approved by LTC with an exit IRR of 9.0% on any portion of the properties being purchased.

(3)

During the second quarter of 2024, we funded an additional $5,546 under a mortgage loan receivable due from an ALG affiliate secured by 13 ALFs and MCs located in North Carolina (12) and South Carolina (1). We then entered into a newly formed $122,460 JV with ALG, whereby we exchanged our $64,450 mortgage loan receivable for a 53% controlling interest in the JV. Concurrently, ALG contributed these properties to the joint venture for a 47% non-controlling interest. The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0%.

(4)

During the second quarter of 2024, we funded an additional $2,766 under a mortgage loan receivable due from an ALG affiliate secured by four ALFs located in North Carolina. We then entered into a newly formed $41,000 JV with ALG, whereby we exchanged $37,985 mortgage loan receivables for a 93% controlling interest in the JV. Concurrently, ALG contributed these properties and a parcel of land to the joint venture for a 7% non-controlling interest. The JV leased the properties to an ALG affiliate under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option exercisable through 2028, with an exit IRR of 8.0%.

Schedule of mortgage loan activity

The following table summarizes our mortgage loan activity for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended March 31,
	2025			2024
Originations and funding under mortgage loans receivable	$	1,919	⁽¹⁾	$	3,128	⁽²⁾
Application of interest reserve		—			14
Scheduled principal payments received		(124)			(125)
Mortgage loan premium amortization		(2)			(2)
Provision for loan loss reserve		(18)			(31)
Net increase in mortgage loans receivable	$	1,775		$	2,984

(1)

Funding relates to a $19,500 mortgage loan commitment for the construction of an 85-unit ALF and MC in Michigan. The borrower contributed $12,100 of equity upon origination in July 2023, which was used to initially fund the construction. Our remaining commitment is $4,828. The interest-only loan term is approximately three years at a rate of 8.75%, and includes two one-year extensions, each of which is contingent on certain coverage thresholds.

(2)	We funded the following:

(a)

$2,940 under our $19,500 mortgage loan commitment. For an explanation of the terms and other relevant information related to this mortgage loan, see (1) above; and

(b)

$188 of additional funding under other mortgage loan receivables.