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Real Estate and Other Investments
 9 Months Ended
Sep. 30, 2025
Real Estate [Abstract]  
Real Estate and Other Investments Real Estate and Other Investments
As of September 30, 2025, we owned 335 properties located in 34 states and Washington, D.C., including 50 properties classified as held for sale, and we owned an equity interest in each of two unconsolidated joint ventures that own medical office and life science properties located in five states.
Dispositions:
The table below represents the sale prices, excluding closing costs, of our dispositions for the nine months ended September 30, 2025. We do not believe these sales represent a strategic shift in our business. As a result, the results of
operations for these properties are included in continuing operations through the date of sale of such properties in our condensed consolidated statements of comprehensive income (loss).
Date of SaleStateType of PropertyNumber of PropertiesSales PriceGain (Loss) on Sale
January 2025DelawareSenior Living (SHOP)1$2,900 $1,263 
January 2025California
Life Science (1)
3159,025 9,723 
February 2025ArizonaLife Science116,800 65 
February 2025Various
Senior Living (1)
18135,000 97,560 
March 2025Connecticut
Medical Office (1)
17,100 1,529 
May 2025TennesseeSenior Living (SHOP)111,150 (5,261)
May 2025MissouriMedical Office15,250 (2,168)
July 2025WisconsinMedical Office1500 (34)
July 2025MontanaMedical Office14,300 31 
July 2025New JerseyAll Other14,000 1,554 
August 2025PennsylvaniaMedical Office11,800 (19)
September 2025GeorgiaSenior Living (SHOP)11,600 (218)
September 2025MarylandMedical Office14,250 (54)
32$353,675 $103,971 
(1)We used aggregate net proceeds of $299,158 from the sales of these properties to partially redeem our outstanding senior secured notes due 2026.

As of September 30, 2025, we had 50 properties classified as held for sale in our condensed consolidated balance sheet as follows:
SegmentNumber of PropertiesReal Estate Properties, Net
SHOP29$94,778 
Medical Office and Life Science21139,609 
50$234,387 
Subsequent to September 30, 2025, we sold 12 properties for an aggregate sales price of $42,130, excluding closing costs. In October 2025, we used net proceeds of $10,249 from the sale of one of these properties to partially redeem our outstanding senior secured notes due 2026. As of November 3, 2025, we had 38 properties under agreements or letters of intent to sell for an aggregate sales price of $237,219, excluding closing costs. The net proceeds from the sales of 12 of these properties, which have an expected aggregate sales price of $90,529, excluding closing costs, are required to be used to partially redeem our outstanding senior secured notes due 2026, if the sales of such properties are completed. We may not complete the sales of any or all of the properties we currently plan to sell. Also, we may sell some or all of these properties at amounts that are less than currently expected and/or less than the carrying values of such properties, and we may incur losses on any such sales as a result.
Impairment:
We regularly evaluate our assets for indicators of impairment. Impairment indicators may include declining tenant or resident occupancy, weak or declining profitability from the property, decreasing tenant cash flows or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of an asset. If indicators of impairment are present, we evaluate the carrying value of the affected assets by comparing it to the expected future undiscounted cash flows to be generated from those assets. The future cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. If the
sum of these expected future cash flows is less than the carrying value, we reduce the net carrying value of the asset to its estimated fair value.
During the nine months ended September 30, 2025, we recorded impairment charges of $109,597 to adjust the carrying value of 18 medical office and life science properties to their estimated fair values. We sold five of these properties during the nine months ended September 30, 2025. The remaining 13 properties were classified as held for sale in our condensed consolidated balance sheet as of September 30, 2025. During the nine months ended September 30, 2025, we also recorded impairment charges of $53,111 to adjust the carrying value of 25 senior living communities in our senior housing operating portfolio, or SHOP, to their estimated fair values. We sold one of these communities during the nine months ended September 30, 2025. The remaining 24 communities were classified as held for sale in our condensed consolidated balance sheet as of September 30, 2025.
Investments and Capital Expenditures:
The following is a summary of capital expenditures, development, redevelopment and other activities for the periods presented:
Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
SHOP fixed assets and capital improvements$33,306 $27,923 $78,704 $59,637 
Medical Office and Life Science Portfolio capital expenditures:
   Lease related costs (1)
4,961 3,504 12,336 15,942 
   Building improvements (2)
2,295 1,359 5,337 4,130 
Recurring capital expenditures - Medical Office and Life Science Portfolio7,256 4,863 17,673 20,072 
Wellness centers lease related costs (1)
— 5,488 — 17,002 
Total recurring capital expenditures$40,562 $38,274 $96,377 $96,711 
Development, redevelopment and other activities - SHOP (3)
$1,865 $11,714 $12,093 $18,608 
Development, redevelopment and other activities - Medical Office and Life Science Portfolio (3)
175 537 175 2,362 
Total development, redevelopment and other activities$2,040 $12,251 $12,268 $20,970 
Capital expenditures by segment:
SHOP$35,171 $39,637 $90,797 $78,245 
Medical Office and Life Science Portfolio7,431 5,400 17,848 22,434 
All Other - wellness centers
— 5,488 — 17,002 
Total capital expenditures$42,602 $50,525 $108,645 $117,681 
(1)Includes capital expenditures to improve tenants' space or amounts paid directly to tenants to improve their space and other leasing related costs, such as brokerage commissions and tenant inducements.
(2)Includes capital expenditures to replace obsolete building components that extend the useful life of existing assets or other improvements to increase the marketability of the property.
(3)Includes capital expenditures that reposition a property or result in change of use or new sources of revenue.
Equity Method Investments in Unconsolidated Joint Ventures:
As of September 30, 2025, we had equity investments in unconsolidated joint ventures as follows:
Equity Method Investments in Joint VentureDHC Ownership
DHC Carrying Value of Investment at September 30, 2025
Number of PropertiesStateSquare Feet
Seaport Innovation LLC10%$67,060 1MA1,134,479 
The LSMD Fund REIT LLC20%45,709 10CA, MA, NY, TX, WA1,068,763 
$112,769 112,203,242 
The following table provides a summary of the mortgage debts of these joint ventures as of September 30, 2025:
Joint VentureCoupon RateMaturity Date
Principal Balance (1)
Mortgage Notes Payable (secured by one property in Massachusetts) (2) (3)
5.60%9/1/2030$1,000,000 
Mortgage Notes Payable (secured by nine properties in five states) (4)
3.46%2/11/2032189,800 
Mortgage Notes Payable (secured by one property in California) (4) (5)
6.14%2/9/2026266,825 
5.40%$1,456,625 
(1)Amounts are not adjusted for our minority equity interest.
(2)We provide certain limited recourse guaranties on this debt, with our liability limited to $100,000.
(3)Reflects August 2025 refinancing of the previous mortgage loan with an original principal balance of $620,000.
(4)The debt securing these properties is non-recourse to us.
(5)The joint venture has one remaining one-year extension option for the maturity date of this mortgage loan, subject to satisfaction of certain conditions, and this mortgage loan requires that interest be paid at an annual rate of the one-month term secured overnight financing rate, or SOFR, plus a premium of 1.90%. The joint venture has purchased an interest rate cap through February 2026 with a SOFR strike rate equal to 5.74%.

We account for the unconsolidated joint venture for 10 medical office and life science properties in which we own a 20% equity interest, or the LSMD JV, and the unconsolidated joint venture for a life science property located in Boston, Massachusetts in which we own a 10% equity interest, or the Seaport JV, using the equity method of accounting under the fair value option. We recognized changes in the fair value of our investments in our unconsolidated joint ventures of $1,869 and $1,707 during the three months ended September 30, 2025 and 2024, respectively, and $5,661 and $(18,173) during the nine months ended September 30, 2025 and 2024, respectively. These amounts are included in equity in net earnings (losses) of investees in our condensed consolidated statements of comprehensive income (loss). On August 21, 2025, the Seaport JV paid an aggregate cash distribution of $280,000 to its investors in connection with the refinancing of its prior mortgage loan in August 2025. Our pro rata share of this cash distribution was $28,000 and our basis in the equity method investment in the Seaport JV was reduced by such amount. See Note 6 for further information regarding the valuation of our investment in these joint ventures.
Equity Method Investment in AlerisLife:
As of September 30, 2025, we owned approximately 34.0% of the outstanding common shares of AlerisLife Inc., or AlerisLife. We do not control the activities that are most significant to AlerisLife and, as a result, we account for our non-controlling interest in AlerisLife using the equity method of accounting.
As of September 30, 2025, our investment in AlerisLife had a carrying value of $8,240. The cost basis of our investment in AlerisLife exceeded our proportionate share of AlerisLife's total stockholders' equity book value on the date of acquisition of our initial interest in AlerisLife, which was February 16, 2024, by an aggregate of $29,500. As required under GAAP, we are amortizing this difference to equity in earnings of an investee over 21 years, the weighted average remaining useful life of the real estate assets owned by AlerisLife and the intangible contract asset with us as of the date of acquisition. We recorded amortization of the basis difference of $351 and $351 for the three months ended September 30, 2025 and 2024, respectively, and $1,053 and $877 for the nine months ended September 30, 2025 and 2024, respectively. We recognized income of $2,863 and $(1,531) related to our investment in AlerisLife for the three months ended September 30, 2025 and 2024, respectively, and $2,938 and $7,414 for the nine months ended September 30, 2025 and 2024, respectively. These amounts are included in equity
in net earnings (losses) of investees in our condensed consolidated statements of comprehensive income (loss). On February 14, 2025, AlerisLife paid an aggregate cash dividend of $50,000 to its stockholders. Our pro rata share of this cash dividend was $17,000 and our basis in the equity method investment in AlerisLife was reduced by such amount. On July 15, 2025, AlerisLife paid an aggregate cash dividend of $10,000 to its stockholders. Our pro rata share of this cash dividend was $3,400 and our basis in the equity method investment in AlerisLife was reduced by such amount. See Note 11 for further information regarding our investment in AlerisLife.
Other:
In September 2022, certain of our managed senior living communities located in Florida experienced hurricane related damage. We carry comprehensive property, casualty, flood and business interruption insurances which covered our losses at these senior living communities, subject to a deductible. During the nine months ended September 30, 2025, we recognized a gain on insurance recoveries of $7,522 as a result of insurance proceeds received for these damaged senior living communities and the closing of the associated claim.