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Real Estate Investments | 6 Months Ended
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Jun. 30, 2025
Real Estate Investments |
Real Estate Investments |
3. | Real Estate Investments
Independent living communities, assisted living communities, memory care communities and combinations thereof are included in the seniors housing communities classification (“SH”). Any reference to the number of properties or facilities, number of units, number of beds, number of operators and yield on investments in real estate are unaudited and outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board. Owned Properties Our owned property investments include 108 properties leased to 20 different operators under Triple-Net leases, and 13 properties operated on our behalf by two independent operators pursuant to separate management agreements. The following tables summarize our investments in owned properties at June 30, 2025 (dollar amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Average |
​ | ​ | ​ | ​ | ​ | Percentage | ​ | ​ | Number | ​ | Number of | ​ | Investment |
​ | ​ | Gross | ​ | of | ​ | ​ | of | ​ | SNF | ​ | SH | ​ | per |
Type of Property | ​ | Investment | ​ | Investment | ​ | ​ | Properties (1) | ​ | Beds | ​ | Units | ​ | Bed/Unit |
Seniors Housing-NNN | ​ | $ | 544,031 | ​ | 40.9 | % | ​ | 57 | ​ | — | ​ | 3,404 | ​ | $ | 159.82 | ​
Seniors Housing-SHOP | ​ | ​ | 174,847 | ​ | 13.2 | % | ​ | 13 | ​ | — | ​ | 832 | ​ | $ | 210.15 | ​
Seniors Housing | ​ | ​ | 718,878 | ​ | 54.1 | % | ​ | 70 | ​ | — | ​ | 4,236 | ​ | $ | 169.71 | ​
Skilled Nursing | ​ | ​ | 598,800 | ​ | 45.0 | % | ​ | 50 | ​ | 6,113 | ​ | 236 | ​ | $ | 94.31 | ​
Other (2) | ​ | ​ | 12,005 | ​ | 0.9 | % | ​ | 1 | ​ | 118 | ​ | — | ​ | $ | — | ​
Total | ​ | $ | 1,329,683 | ​ | 100.0 | % | ​ | 121 | ​ | 6,231 | ​ | 4,472 | ​ | ​ | ​ | ​
(1) | We own properties in 23 states.
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(2) | Includes three parcels of land held-for-use, and one behavioral health care hospital.
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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | NNN | ​ | SHOP | ​ | Total
​ | ​ | ​ | ​ | Percentage | ​ | Number | ​ | ​ | ​ | Percentage | ​ | Number | ​ | ​ | ​ | Percentage | ​ | Number
​ | ​ | Gross | ​ | of | ​ | of | ​ | Gross | ​ | of | ​ | of | ​ | Gross | ​ | of | ​ | of
Type of Property | ​ | Investment | ​ | Investment | ​ | Properties | ​ | Investment | ​ | Investment | ​ | Properties | ​ | Investment | ​ | Investment | ​ | Properties
Seniors Housing | ​ | $ | 544,031 | ​ | 40.9 | % | ​ | 57 | ​ | $ | 174,847 | ​ | 13.2 | % | ​ | 13 | ​ | $ | 718,878 | ​ | 54.1 | % | ​ | 70
Skilled Nursing | ​ | ​ | 598,800 | ​ | 45.0 | % | ​ | 50 | ​ | ​ | — | ​ | — | % | ​ | — | ​ | ​ | 598,800 | ​ | 45.0 | % | ​ | 50
Other | ​ | ​ | 12,005 | ​ | 0.9 | % | ​ | 1 | ​ | ​ | — | ​ | — | % | ​ | — | ​ | ​ | 12,005 | ​ | 0.9 | % | ​ | 1
Total | ​ | $ | 1,154,836 | ​ | 86.8 | % | ​ | 108 | ​ | $ | 174,847 | ​ | 13.2 | % | ​ | 13 | ​ | $ | 1,329,683 | ​ | 100.0 | % | ​ | 121
​ During the six months ended June 30, 2025 and 2024, we invested in the following capital improvement projects in our owned properties (dollar amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended June 30, | ​
Type of Property | ​ | 2025 | ​ | 2024 | ​
​ | ​ | NNN | ​ | SHOP | ​ | NNN | ​ | SHOP | ​
Seniors Housing Communities | ​ | $ | 1,668 | ​ | $ | 91 | ​ | $ | 2,787 | ​ | $ | — | ​
Skilled Nursing Centers | ​ | ​ | 736 | ​ | ​ | — | ​ | ​ | 848 | ​ | ​ | — | ​
Total | ​ | $ | 2,404 | ​ | $ | 91 | ​ | $ | 3,635 | ​ | $ | — | ​
​ Owned Properties- Triple-Net Our Triple-Net leases require the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities. Many of the leases contain renewal options. The majority of our leases contain provisions for specified annual increases over the rents of the prior year. Many of our existing leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater than that currently being paid. The following table outlines information related to our Triple-Net lease extensions during the six months ended June 30, 2025:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Number | ​ | Number | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Gross | ​ | of | ​ | of | ​ | ​ | ​ | Original | ​ | Extended
Type of Property | ​ | ​ | Investment | ​ | Properties | ​ | Beds/Units | ​ | State | ​ | Maturity | ​ | Maturity
SH | ​ | $ | 68,353 | ​ | 7 | ​ | 461 | ​ | IL, MI, OH | ​ | May 31, 2025 | ​ | May 31, 2026
SNF | ​ | ​ | 53,339 | ​ | 6 | ​ | 782 | ​ | AL, NM | ​ | April 30, 2026 | (1) | April 30, 2031
SH | ​ | ​ | 32,361 | ​ | 2 | ​ | 159 | ​ | GA, SC | ​ | December 31, 2025 | ​ | December 31, 2026
SH | ​ | ​ | 25,704 | ​ | 2 | ​ | 88 | ​ | TX | ​ | February 28, 2025 | ​ | February 28, 2026
SNF | ​ | ​ | 13,054 | ​ | 2 | ​ | 211 | ​ | SC | ​ | February 28, 2026 | ​ | February 28, 2031
SNF | ​ | ​ | 5,275 | ​ | 2 | ​ | 141 | ​ | TN | ​ | December 31, 2025 | (2) | December 31, 2026
​ | ​ | $ | 198,086 | ​ | 21 | ​ | 1,842 | ​ | ​ | ​ | ​ | ​ | ​
(1) | Subsequent to June 30, 2025, Genesis Healthcare, Inc. (“Genesis”) filed for Chapter 11 bankruptcy. Genesis has paid their contractual rent through August 2025.
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(2) | The purchase option window provided in the master lease, which expired on December 31, 2024, was extended for another year to December 31, 2025.
Additionally, during the six months ended June 30, 2025, we terminated two existing leases with the same operator and combined them into a single master lease. The new master lease has a five-year term with one 1-year extension option and four 5-year extension options. Annual cash rent is $2,547,000 for the first lease year, escalating by 2% annually thereafter. In connection with the termination of these leases, we wrote-off straight-line rent receivable and lease incentive balances of $243,000 and $249,000, respectively. Also, during the six months ended June 30, 2025, we terminated our Anthem Triple-Net master leases and converted the communities covered under the master leases into our SHOP segment. In conjunction with the conversion, we wrote-off Anthem’s working capital note of $2,693,000 and the related interest receivable of $371,000 during the six months ended June 30, 2025. In addition, we terminated our New Perspective Triple-Net lease and converted the community covered under the lease into our SHOP segment. In connection with the conversion, we paid New Perspective a $5,971,000 lease termination fee. For more information regarding these communities, see Owned Properties-SHOP below. We monitor the collectability of our receivable balances, including deferred rent receivable balances, on an ongoing basis. We write-off uncollectible operator receivable balances, including straight- line rent receivable and lease incentives balances, as a reduction to rental income in the period such balances are no longer probable of being collected. Therefore, recognition of rental income is limited to the lesser of the amount of cash collected or rental income reflected on a “straight-line” basis for those customer receivable balances deemed uncollectible. During the six months ended June 30, 2025, we wrote-off straight-line rent receivable and lease incentive balances of $243,000 and $249,000, respectively, in connection with the termination of two existing leases with the same operator, and combining them into a master lease as discussed above. During the six months ended June 30, 2024, we wrote-off a straight-line rent receivable balance of $321,000 as a result of converting a lease to fair-market rent resets and a lease incentive balance of $190,000 as a result of property sales. We continue to take into account the current financial condition of our operators in our estimation of uncollectible accounts at June 30, 2025. We are closely monitoring the collectability of such rents and will adjust future estimations as appropriate as further information becomes known. ​ The following table summarizes components of our rental income for the three and six months ended June 30, 2025 and 2024 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, | ​ | June 30, | ​
Rental Income | ​ | ​ | 2025 | ​ | ​ | 2024 | ​ | ​ | 2025 | ​ | ​ | 2024 | ​
Contractual cash rental income | ​ | $ | 28,079 | (1) | $ | 28,976 | (1) | $ | 57,702 | (2) | $ | 59,927 | (2)
Variable cash rental income (3) | ​ | ​ | 2,777 | ​ | ​ | 3,255 | ​ | ​ | 5,866 | ​ | ​ | 6,636 | ​
Straight-line rent adjustment | ​ | ​ | (497) | ​ | ​ | (48) | ​ | ​ | (1,075) | (4) | ​ | (598) | (4)
Adjustment of lease incentives and rental income | ​ | ​ | — | ​ | ​ | (321) | ​ | ​ | (492) | (5) | ​ | (321) | (6)
Amortization of lease incentives | ​ | ​ | (182) | ​ | ​ | (205) | ​ | ​ | (380) | ​ | ​ | (438) | ​
Total | ​ | $ | 30,177 | ​ | $ | 31,657 | ​ | $ | 61,621 | ​ | $ | 65,206 | ​
(1) | Decreased primarily due to the conversion of 13 communities from Triple-Net to our new SHOP segment, partially offset by rent increases from fair-market rent resets.
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(2) | Decreased primarily due to turnaround impact of one-time revenue received in 2024 related to the repayment of $2,377 in rent credit, lower rent from property sales, and (1) above, partially offset by higher rent from escalations.
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(3) | The variable rental income includes reimbursement of real estate taxes by our lessees. Decrease primarily due to conversion of 13 communities from Triple-Net to our new SHOP segment and property sales.
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(4) | Straight-line rental income decreased primarily due to scheduled annual escalations.
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(5) | In connection with the termination of two existing leases with the same operator, and combining them into a single master lease, we wrote-off a straight-line rent receivable of $243 and a lease incentive balance of $249.
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(6) | Represents a lease incentive balance write-off as a result of converting a lease to fair-market rent resets.
Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements (dollar amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Type | ​ | Number | ​ | ​ | ​ | ​ | ​ | ​ | ​
Option | ​ | ​ | ​ | of | ​ | of | ​ | ​ | Gross | ​ | ​ | Net Book | ​
Window | ​ | State | ​ | Property | ​ | Properties | ​ | ​ | Investments (1) | ​ | ​ | Value | ​
2024-2028 | (2) | North Carolina | ​ | SH | ​ | 4 | ​ | $ | 41,000 | ​ | $ | 41,000 | ​
2024-2028 | (2) | North Carolina/ South Carolina | ​ | SH | ​ | 13 | ​ | ​ | 122,460 | ​ | ​ | 122,460 | ​
2025 | (3) | Tennessee | ​ | SNF | ​ | 2 | ​ | ​ | 5,275 | ​ | ​ | 2,051 | ​
2025-2027 | (4) | Florida | ​ | SNF | ​ | 3 | ​ | ​ | 76,560 | ​ | ​ | 76,560 | ​
2025-2029 | (5) | North Carolina | ​ | SH | ​ | 11 | ​ | ​ | 121,419 | ​ | ​ | 121,419 | ​
2026 | ​ | South Carolina | ​ | SH | ​ | 1 | ​ | ​ | 11,680 | ​ | ​ | 7,657 | ​
2027 | ​ | Georgia/South Carolina | ​ | SH | ​ | 2 | ​ | ​ | 32,361 | ​ | ​ | 24,484 | ​
2027-2029 | (6) | Oklahoma | ​ | SH | ​ | 4 | ​ | ​ | 9,052 | ​ | ​ | 3,134 | ​
2027-2029 | (7) | Texas | ​ | SNF | ​ | 4 | ​ | ​ | 52,726 | ​ | ​ | 48,276 | ​
2029 | ​ | Colorado/Kansas/Ohio/Texas | ​ | SH | ​ | 17 | ​ | ​ | 65,403 | ​ | ​ | 29,784 | ​
2029 | ​ | North Carolina | ​ | ALF | ​ | 5 | ​ | ​ | 15,239 | ​ | ​ | 7,096 | ​
​ | ​ | Total | ​ | ​ | ​ | 66 | ​ | $ | 553,175 | ​ | $ | 483,921 | ​
(1) | Gross investments include previously recorded impairment losses, if any.
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(2) | The purchase option can be exercised through 2028, with an exit Internal Rate of Return (“IRR”) of 8.0%. These assets are accounted for as financing receivables. For more information see Financing Receivables below.
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(3) | The purchase option window which expired on December 31, 2024, was extended for another year to December 31, 2025.
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(4) | These assets are accounted for as financing receivables. For more information see Financing Receivables below.
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(5) | The operator 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. These assets are accounted for as financing receivables. For more information see Financing Receivables below.
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(6) | The purchase option can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option under the master lease.
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(7) | The operator may elect to either receive an earn-out payment or exercise its purchase option. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the earn-out see Note 12. Commitments and Contingencies.
Properties Held -for-Sale. The following summarizes our held-for-sale properties as of June 30, 2025 and December 31, 2024 (dollar amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Type | ​ | Number | ​ | Number | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | of | ​ | of | ​ | of | ​ | ​ | Gross | ​ | ​ | Accumulated | ​
​ | ​ | State | ​ | Property | ​ | Properties | ​ | Beds/units | ​ | ​ | Investment | ​ | ​ | Depreciation | ​
At June 30, 2025 | ​ | CA/FL/VA | ​ | SNF | (1) | 7 | ​ | 896 | ​ | $ | 71,742 | ​ | $ | (29,284) | ​
At December 31, 2024 | ​ | OK | ​ | SH | (2) | 1 | ​ | 29 | ​ | $ | 2,016 | ​ | $ | (1,346) | ​
(1) | During 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 June 30, 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 July 2025.
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(2) | This community was sold during the first quarter of 2025. Upon sale, the community was removed from a master lease covering five SHs in Oklahoma and rent under the master lease was not reduced as a result of the sale.
​ Acquisitions. The following table summarizes our acquisitions for the six months ended June 30, 2025 and 2024 (dollar amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Cash | ​ | ​ | ​ | ​ | ​ | ​ | Number | ​ | Number
​ | ​ | ​ | ​ | Paid at | ​ | Transaction | ​ | ​ | Assets | ​ | of | ​ | of
Year | ​ | Type of Property | ​ | Acquisition | ​ | Costs | ​ | ​ | Acquired | ​ | Properties | ​ | Beds/Units
2025 | ​ | n/a | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | n/a | ​ | n/a
2024 | ​ | OTH (1) | ​ | ​ | 300 | ​ | ​ | 19 | ​ | ​ | 319 | ​ | — | ​ | —
(1) | During the six months ended June 30, 2024, we acquired a parcel of land in Kansas adjacent to an existing community operated by Brookdale. Rent was increased by 8.0% of our total cost of the investment.
Intangible Assets. We make estimates as part of our allocation of the purchase price of acquisitions to various components of acquisition based upon the fair value of each component. In determining fair value, we use current appraisals or other third-party opinions of value. The most significant components of our allocations are typically the allocation of fair value to land and buildings, and for certain of our acquisitions, in-place leases and other intangible assets. In the case of the value of in-place leases, we make the best estimates based on the evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during the hypothetical expected lease-up periods, market conditions and costs to execute similar leases. The following is a summary of the carrying amount of intangible assets as of June 30, 2025 and December 31, 2024 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2025 | ​ | December 31, 2024
​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​
Assets | ​ | ​ | Cost | ​ | ​ | ​ | Amortization | ​ | ​ | ​ | Net | ​ | ​ | Cost | ​ | ​ | ​ | Amortization | ​ | ​ | ​ | Net
In-place leases | ​ | $ | 11,047 | (1) | ​ | $ | (7,169) | (2) | ​ | $ | 3,878 | ​ | $ | 11,047 | (1) | ​ | $ | (6,758) | (2) | ​ | $ | 4,289
Tax abatement intangible | ​ | $ | 8,309 | (3) | ​ | $ | (1,443) | (3) | ​ | $ | 6,866 | ​ | $ | 8,309 | (3) | ​ | $ | (1,097) | (3) | ​ | $ | 7,212
(1) | Included in the Buildings and improvements line item in our Consolidated Balance Sheets.
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(2) | Included in the Accumulated depreciation and amortization line item in our Consolidated Balance Sheets.
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(3) | Included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets.
​ Properties Sold. During the six months ended June 30, 2025 and 2024 we recorded a net gain on sale of real estate of $503,000 and $3,219,000, respectively. The following table summarizes property sales during the six months ended June 30, 2025 and 2024 (dollar amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Type | ​ | Number | ​ | Number | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | of | ​ | of | ​ | of | ​ | ​ | Sales | ​ | ​ | Carrying | ​ | ​ | Net | ​
Year | ​ | State | ​ | Properties | ​ | Properties | ​ | Beds/Units | ​ | ​ | Price | ​ | ​ | Value | ​ | ​ | (Loss) Gain (1) | ​
2025 | ​ | Ohio | ​ | SH | ​ | 1 | ​ | 39 | ​ | $ | 1,000 | ​ | $ | 670 | ​ | $ | 259 | ​
​ | ​ | Ohio (2) | ​ | n/a | ​ | — | ​ | — | ​ | ​ | 1,800 | ​ | ​ | 1,342 | ​ | ​ | 340 | ​
​ | ​ | Oklahoma | ​ | SH | ​ | 1 | ​ | 29 | ​ | ​ | 670 | ​ | ​ | 670 | ​ | ​ | (96) | ​
Total | ​ | ​ | ​ | ​ | ​ | 2 | ​ | 68 | ​ | $ | 3,470 | ​ | $ | 2,682 | ​ | $ | 503 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2024 | ​ | Florida | ​ | SH | ​ | 1 | ​ | 60 | ​ | $ | 4,500 | ​ | $ | 4,579 | ​ | $ | (335) | ​
​ | ​ | Texas | ​ | SH | ​ | 5 | ​ | 208 | ​ | ​ | 1,600 | ​ | ​ | 1,282 | ​ | ​ | (380) | ​
​ | ​ | Texas | ​ | SH | ​ | 2 | ​ | — | ​ | ​ | 500 | ​ | ​ | 389 | ​ | ​ | 8 | ​
​ | ​ | Wisconsin | ​ | SH | ​ | 1 | ​ | 110 | ​ | ​ | 20,193 | (3) | ​ | 16,195 | (3) | ​ | 3,986 | ​
​ | ​ | n/a | ​ | n/a | ​ | — | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (60) | (4)
Total | ​ | ​ | ​ | ​ | ​ | 9 | ​ | 378 | ​ | $ | 26,793 | ​ | $ | 22,445 | ​ | $ | 3,219 | ​
(
(1) | Calculation of net gain includes cost of sales and write-off of straight-line receivable and lease incentives, when applicable.
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(2) | We sold a parcel of land adjacent to a memory care community within our portfolio.
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(3) | Represents the price to sell our portion of interest in a JV, net of the JV partner’s $2,305 contributions in the joint venture.
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(4) | We recognized additional loss due to additional incurred costs related to properties sold during 2023.
Owned Properties-SHOP As discussed above, during the second quarter of 2025, we terminated our Anthem and New Perspective Triple-Net master leases and converted the communities covered under the master leases into our new SHOP segment. At June 30, 2025, our SHOP included operations of 13 communities managed on our behalf by two independent operators pursuant to separate management agreements. The following table provides information regarding our SHOP (dollar amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Seniors | ​ | Average | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Resident | ​ | Housing | ​ | Investment | ​ | Number | ​ | Number | ​ | ​
​ | ​ | ​ | Gross | ​ | Fees and | ​ | Operating | ​ | per | ​ | of | ​ | of | ​ | ​
Type of Property | ​ | Investment | ​ | Services (1) | ​ | Expenses | ​ | Unit | ​ | Properties | ​ | Beds/Units | ​ | State
SH | ​ | $ | 152,462 | ​ | $ | 11,755 | (2) | $ | 9,302 | (2) | $ | 208.28 | ​ | 12 | ​ | 732 | ​ | CA, CO, KS, IL, OH
SH | ​ | ​ | 22,385 | ​ | ​ | 195 | (2) | ​ | 117 | (2) | $ | 223.85 | ​ | 1 | ​ | 100 | ​ | WI
Total | ​ | $ | 174,847 | ​ | $ | 11,950 | ​ | $ | 9,419 | ​ | $ | 210.15 | ​ | 13 | ​ | 832 | ​ | ​
(1) | Resident fees and services include all amounts earned from residents, based on individual resident agreements, at our SHOP communities. The individual resident agreements typically vary in duration. Resident fees and services are primarily service-based and are recognized in accordance with ASC 606 once performance obligations are satisfied.
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(2) | These communities were converted from NNN to SHOP during the second quarter of 2025. Accordingly, revenues and expenses do not reflect a full quarter of operations.
Subsequent to June 30, 2025, we acquired a 67-unit assisted living and memory care community in California within our SHOP segment for $35,200,000. In connection with the acquisition, we entered into a management agreement with an operator new to us. ​ Financing Receivables As part of our acquisitions, we may invest in sale and leaseback transactions. In accordance with the accounting guidance, we must determine whether each sale and leaseback transaction qualifies as a sale. Generally, an option for the seller-lessee to repurchase a real estate asset precludes accounting for the transfer of the asset as a sale and the purchased assets should be presented as financing receivables. We have entered into joint venture agreements and contributed into these JVs for the purchase of properties through sale and leaseback transactions. Concurrently, each of these JVs leased the purchased properties back to an affiliate of the seller and provided the seller-lessee with purchase options. Accordingly, these sale and leaseback transactions meet the accounting criteria to be presented as financing receivables. Furthermore, we determined that we exercise power over and receive benefits from each of these joint ventures. Therefore, we consolidated the joint ventures as Financing Receivables on our Consolidated Balance Sheets and recorded the rental revenue from these joint ventures as Interest income from financing receivables on our Consolidated Statements of Income. 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 | ​ | $ | 76,559 | ​ | $ | 62,234 | ​ | SNF | ​ | 3 | ​ | 299 | ​ | $ | 256.05
7.25% | (2) | 2023 | ​ | 2033 | ​ | NC | ​ | ​ | 121,419 | ​ | ​ | 118,503 | ​ | SH | ​ | 11 | ​ | 523 | ​ | $ | 232.16
7.25% | (3) | 2024 | ​ | 2034 | ​ | NC/SC | ​ | ​ | 122,460 | ​ | ​ | 64,450 | ​ | SH | ​ | 13 | ​ | 523 | ​ | $ | 234.15
7.25% | (4) | 2024 | ​ | 2034 | ​ | NC | ​ | ​ | 41,000 | ​ | ​ | 37,985 | ​ | SH | ​ | 4 | ​ | 217 | ​ | $ | 188.94
Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 361,438 | ​ | $ | 283,172 | ​ | ​ | ​ | 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).
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(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%.
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(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%.
​ Mortgage Loans The following table sets forth information regarding our investments in mortgage loans secured by first mortgages at June 30, 2025 (dollar amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Type | ​ | Percentage | ​ | Number of | ​ | Investment
​ | ​ | ​ | ​ | ​ | ​ | Gross | ​ | of | ​ | of | ​ | ​ | ​ | ​ | ​ | SNF | ​ | SH | ​ | per
Interest Rate | ​ | Maturity | ​ | State | ​ | Investment | ​ | Property | ​ | Investment | ​ | Loans (2) | ​ | Properties (3) | ​ | Beds | ​ | Units | ​ | Bed/Unit
8.8% | ​ | 2025 | ​ | FL | ​ | $ | 4,000 | ​ | SH | ​ | 1.1 | % | 1 | ​ | 2 | ​ | — | ​ | 92 | ​ | $ | 43.48
7.8% | ​ | 2025 | ​ | FL | ​ | ​ | 16,706 | ​ | SH | ​ | 4.7 | % | 1 | ​ | 1 | ​ | — | ​ | 112 | ​ | $ | 149.16
7.3% | ​ | 2025 | ​ | NC | ​ | ​ | 10,750 | ​ | SH | ​ | 3.0 | % | 1 | ​ | 1 | ​ | — | ​ | 45 | ​ | $ | 238.89
8.8% | ​ | 2026 | ​ | MI | ​ | ​ | 15,793 | ​ | SH | ​ | 4.4 | % | 1 | ​ | 1 | ​ | — | ​ | 85 | ​ | $ | 185.80
8.8% | ​ | 2028 | ​ | IL | ​ | ​ | 16,500 | ​ | SNF | ​ | 4.6 | % | 1 | ​ | 1 | ​ | 150 | ​ | — | ​ | $ | 110.00
8.5% | ​ | 2030 | ​ | FL | ​ | ​ | 38,495 | ​ | SH | ​ | 10.8 | % | 1 | ​ | 1 | ​ | — | ​ | 250 | ​ | $ | 153.98
11.1% (4) | ​ | 2043 | ​ | MI | ​ | ​ | 180,421 | ​ | SNF | ​ | 50.6 | % | 1 | ​ | 14 | ​ | 1,749 | ​ | — | ​ | $ | 103.16
10.0% (5) | ​ | 2045 | ​ | MI | ​ | ​ | 39,700 | ​ | SNF | ​ | 11.1 | % | 1 | ​ | 4 | ​ | 480 |  | — | ​ | $ | 82.71
10.5% (5) | ​ | 2045 | ​ | MI | ​ |  | 19,650 | ​ | SNF | ​ | 5.5 | % | 1 | ​ | 2 | ​ | 201 |  | — | ​ | $ | 97.76
10.8% (5) | ​ | 2045 | ​ | MI | ​ | ​ | 14,800 | ​ | SNF | ​ | 4.2 | % | 1 | ​ | 1 | ​ | 146 | ​ | — | ​ | $ | 101.37
Total | ​ | ​ | ​ | ​ | ​ | $ | 356,815 | (1) | ​ | ​ | 100.0 | % | 10 | ​ | 28 | ​ | 2,726 |  | 584 | ​ | $ | 107.80
(1) | Excludes the impact of the credit loss reserve.
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(2) | Some loans contain certain guarantees and provide for certain facility fees.
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(3) | Our mortgage loans are secured by properties located in four states with seven borrowers. Additionally, during 2024, we committed to fund a $26,120 mortgage loan for the construction of a 116-unit ILF, ALF and MC located in Illinois. The borrower contributed $12,300 of equity which will initially fund the construction. Once all of the borrower’s equity has been drawn, we will begin funding the commitment. The loan term is approximately six years at a current rate of 9.0% and an IRR of 9.5%.
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(4) | Minimum interest payable is based on an annual current pay interest rate of 8.5% on the outstanding loan balance. The difference between the contractual interest rate and the current pay interest rate on the outstanding loan balance remains an obligation of the borrower and is payable through the application of security deposits held by LTC on behalf of Prestige Healthcare (“Prestige”), the borrower, or payable upon maturity. Prestige paid full contractual interest through July 2025 and none of Prestige’s security was used to pay the difference between the contractual interest rate and the current pay interest rate. As of June 30, 2025, we hold $6,077 in security on behalf of Prestige. The loan provides for 2.25% annual interest rate increases. During July 2025, we amended the mortgage loan to eliminate the current pay rate and revert monthly interest payments to the full contractual interest rate of 11.14%, effective July 1, 2025. Additionally, the amendment provides Prestige an option to prepay their mortgage loan at par and without penalty within a 12-month window beginning in July 2026. Prestige will have to provide us with a 90-day notice of its intention to exercise the option, and the ability for Prestige to exercise the pre-payment option is contingent on several factors including Prestige being current and in good standing on all its mortgage loans with LTC and obtaining replacement financing. As of June 30, 2025, we have $41,455 of accrued effective interest related to this loan, which is expected to be recovered through payments collected through the contractual maturity of the loan. If Prestige exercises its contingent prepayment option, we will no longer be able to collect our remaining accrued effective interest as of such date.
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(5) | Mortgage loans provide for 2.25% annual increases in the interest rate.
​ The following table summarizes our mortgage loan activity for the six months ended June 30, 2025 and 2024 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended June 30, | ​
​ | ​ | 2025 | ​ | 2024 | ​
Originations and funding under mortgage loans receivable | ​ | $ | 41,535 | (1) | $ | 15,957 | (2)
Exchange of mortgage loans for controlling interests in joint ventures accounted for as financing receivables | ​ | ​ | — | ​ | ​ | (102,435) | (3)
Pay-offs received | ​ | ​ | — | ​ | ​ | (2,013) | ​
Application of interest reserve | ​ | ​ | — | ​ | ​ | 169 | ​
Scheduled principal payments received | ​ | ​ | (451) | ​ | ​ | (380) | ​
Mortgage loan premium amortization | ​ | ​ | (3) | ​ | ​ | (3) | ​
(Provision) recovery for loan loss reserve | ​ | ​ | (411) | ​ | ​ | 887 | ​
Net increase (decrease) in mortgage loans receivable | ​ | $ | 40,670 | ​ | $ | (87,818) | ​
(1) | Includes the following:
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| (a) | $38,495 under our $42,300 mortgage loan commitment secured by a 250-unit ILF, ALF and MC in Florida. The loan term is five years at a fixed rate of 8.5%; and
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| (b) | $3,040 under our $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 $3,706. 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.
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(2) | Includes the following:
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| (a) | $6,878 under our $19,500 mortgage loan commitment. For an explanation of the terms and other relevant information related to this mortgage loan see (1) (a) above;
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| (b) | $5,546 of additional funding under a mortgage loan receivable agreement with an ALG affiliate secured by 13 ALFs and MCs in North Carolina (12) and South Carolina (1). During the three months ended June 30, 2024, we exchanged this $64,450 mortgage loan receivable for a controlling interest in a JV investment with an ALG affiliate. See Financing Receivables above for more information;
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| (c) | $2,766 of additional funding under a mortgage loan receivable agreement with an ALG affiliate secured by four ALFs in North Carolina. During the three months ended June 30, 2024, we exchanged this $37,985 mortgage loan receivable for a controlling interest in a JV investment with an ALG affiliate. See Financing Receivables above for more information; and
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| (d) | $767 of additional funding.
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(3) | Includes the following:
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| (a) | $64,450 mortgage loan receivable due from an ALG affiliate was exchanged for a controlling interest in a JV. See (2)(b) above for more information;
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| (b) | $37,985 mortgage loan receivable due from an ALG affiliate was exchanged for a controlling interest in a JV. See (2)(c) above for more information;

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- Definition The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481990/310-10-45-3 + Details
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