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Notes Receivable

9 Months Ended

Sep. 30, 2025

Notes Receivable.

Notes Receivable

5.	Notes Receivable

Notes receivable consist of working capital loans and a mezzanine loan. The following table summarizes our investments in notes receivable at September 30, 2025 (dollar amounts in thousands):


Interest							Type of		Gross						Type of
Rate		IRR			Maturity		Loan		Investment				# of loans		Property
9.0%		—			2026		Working capital		$	25			1		SH
8.0%		11.0	%		2027		Mezzanine			25,000			1		SH
0.0%		—			2028		Working capital			1,028			1		SNF
7.6%		—			2030		Working capital			957			1		SH
									$	27,010	⁽¹⁾		4

(1)	Excludes the impact of credit loss reserve.

The following table is a summary of our notes receivable components as of September 30, 2025 and December 31, 2024 (in thousands):


	At September 30, 2025			At December 31, 2024
Mezzanine loans	$	25,000		$	42,000
Working capital loans		2,010			5,717
Notes receivable credit loss reserve		(270)			(477)
Total notes receivable, net of credit loss reserve	$	26,740		$	47,240

The following table summarizes our notes receivable activity for the nine months ended September 30, 2025 and 2024 (in thousands):


	Nine Months Ended September 30,
		2025			2024
Advances under notes receivable	$	25		$	340
Principal payments received under notes receivable		(18,039)	⁽¹⁾		(13,268)	⁽³⁾
Write-off of notes receivable		(2,693)	⁽²⁾		—
Recovery of credit losses		207			129
Net decrease in notes receivable	$	(20,500)		$	(12,799)

(1)	Includes the following:

(a)

$17,000 related to an early payoff of a mezzanine loan. In conjunction with the mezzanine loan payoff, we received exit IRR income of $2,599 recognized as Interest and other income in our Consolidated Statements of Income. The exit IRR income was partially offset by $1,624 of effective interest previously recognized over the term of the mezzanine loan through payoff;

(b)

$639 related to the payoff of three working capital loans; and

(c)

$400 related to the paydown of a working capital loan.

(2)	Represents the write-off of Anthem Memory Care LLC (“Anthem”) working capital note in connection with the conversion of Anthem’s Triple-Net leases to SHOP.

(3)

During 2024, we received $11,986 towards the paydown of a $13,531 working capital note. The remaining $1,545 balance of the working capital note is interest free and will be repaid in installments through 2028. Additionally, we received an aggregate of $1,282 related to the payoff of two working capital notes.