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Property Portfolio | 12 Months Ended
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Dec. 31, 2025
Property Portfolio |
Property Portfolio | Note 3 – Property Portfolio Summary of Properties Acquired and Sold During the Year Ended December 31, 2025 During the year ended December 31, 2025, the Company completed the acquisition of a five-property portfolio of medical real estate. For this acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, this acquisition represented an asset acquisition. Accordingly, $1.0 million of transaction costs for this acquisition were capitalized. During the year ended December 31, 2025, the Company completed seven dispositions for approximately $23.0 million, realizing an aggregate net gain of approximately $1.5 million. In addition, we recognized impairment losses on the sold assets of $13.0 million. A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2025 is as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Site | ​ | Tenant | ​ | Acquired Lease | ​ | Gross Investment in
​ | ​ ​ | Land | ​ ​ | Building | ​ ​ | Improvements | ​ ​ | Improvements | ​ ​ | Intangible Assets | ​ ​ | Real Estate
Balances as of December 31, 2024 | ​ | $ | 174,300 | ​ | $ | 1,044,019 | ​ | $ | 23,973 | ​ | $ | 69,679 | ​ | $ | 138,945 | ​ | $ | 1,450,916
Facility Acquired – Date Acquired: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Carondelet - 2/7/25 | ​ | ​ | — | ​ | ​ | 13,327 | ​ | ​ | — | ​ | ​ | 1,274 | ​ | ​ | 1,725 | ​ | ​ | 16,326
Silverbell - 2/7/25 | ​ | ​ | — | ​ | ​ | 8,482 | ​ | ​ | — | ​ | ​ | 973 | ​ | ​ | 1,368 | ​ | ​ | 10,823
Slippery Rock - 2/7/25 | ​ | ​ | — | ​ | ​ | 3,511 | ​ | ​ | 455 | ​ | ​ | 593 | ​ | ​ | 572 | ​ | ​ | 5,131
Clive - 4/1/25 | ​ | ​ | — | ​ | ​ | 11,400 | ​ | ​ | 507 | ​ | ​ | 1,595 | ​ | ​ | 2,218 | ​ | ​ | 15,720
Des Moines - 4/1/25 | ​ | ​ | — | ​ | ​ | 18,917 | ​ | ​ | 182 | ​ | ​ | 3,289 | ​ | ​ | 3,519 | ​ | ​ | 25,907
Capitalized costs(1) | ​ |  | — | ​ | ​ | 5,927 | ​ | ​ | 1,226 | ​ | ​ | 5,008 | ​ | ​ | — | ​ |  | 12,161
Total Additions: | ​ | ​ | — | ​ | ​ | 61,564 | ​ | ​ | 2,370 | ​ | ​ | 12,732 | ​ | ​ | 9,402 | ​ | ​ | 86,068
Facility Sold – Date Sold: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derby - 2/18/25 | ​ | ​ | (146) | ​ | ​ | (1,250) | ​ | ​ | (118) | ​ | ​ | (73) | ​ | ​ | (372) | ​ | ​ | (1,959)
Coos Bay - 3/19/25 | ​ | ​ | (861) | ​ | ​ | (5,096) | ​ | ​ | (56) | ​ | ​ | (49) | ​ | ​ | (410) | ​ | ​ | (6,472)
Chipley - 4/30/25 | ​ | ​ | (170) | ​ | ​ | (875) | ​ | ​ | (34) | ​ | ​ | (111) | ​ | ​ | (189) | ​ | ​ | (1,379)
2999 Germantown - 8/7/25 | ​ | ​ | (253) | ​ | ​ | (1,593) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (1,846)
Aurora - 9/4/25 | ​ | ​ | (339) | ​ | ​ | (2,345) | ​ | ​ | (308) | ​ | ​ | (603) | ​ | ​ | (2,680) | ​ | ​ | (6,275)
Memphis Exeter - 11/4/25 | ​ | ​ | (232) | ​ | ​ | (1,912) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (2,144)
Melbourne - 12/30/25 | ​ | ​ | (1,200) | ​ | ​ | (8,556) | ​ | ​ | (86) | ​ | ​ | (1,178) | ​ | ​ | (123) | ​ | ​ | (11,143)
Total Dispositions: | ​ | ​ | (3,201) | ​ | ​ | (21,627) | ​ | ​ | (602) | ​ | ​ | (2,014) | ​ | ​ | (3,774) | ​ | ​ | (31,218)
Impairment of investment properties(2) | ​ | ​ | (1,182) | ​ | ​ | (11,832) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (13,014)
Balances as of December 31, 2025 | ​ | $ | 169,917 | ​ | $ | 1,072,124 | ​ | $ | 25,741 | ​ | $ | 80,397 | ​ | $ | 144,573 | ​ | $ | 1,492,752
(1) | Represents capital projects that were completed and placed in service during the year ended December 31, 2025 related to the Company’s existing facilities.
(2) | In August 2025, the Company entered into an agreement to sell its facility located in Aurora, Illinois, and recognized an impairment loss of $6.3 million to reduce the carrying value of the asset to its estimated fair value. The fair value was determined based on the contractual sales price, less commissions and fees, and the sale was completed in September 2025. In December 2025, the Company entered into an agreement to sell its facility located in Melbourne, Florida, and recognized an impairment loss of $6.7 million to reduce the carrying value of the asset to its estimated fair value. The fair value was determined based on the contractual sales price, less commissions and fees, and the sale was completed in December 2025.
​ Depreciation expense was $44,025, $40,427, and $41,266 for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, the Company had aggregate capital improvement commitments and obligations to improve, expand, and maintain the Company’s existing facilities of approximately $25.7 million. Many of these amounts are subject to contingencies that make it difficult to predict when they will be expended, if at all. In accordance with the terms of the Company’s leases, capital improvement obligations in the next twelve months are expected to total approximately $12.6 million. Summary of Properties Acquired and Sold During the Year Ended December 31, 2024 During the year ended December 31, 2024, the Company completed the acquisition of a 15-property portfolio. For this acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, this acquisition represents an asset acquisition. Accordingly, transaction costs for this acquisition were capitalized. During the year ended December 31, 2024, the Company completed seven dispositions. In June 2024, the Company sold an in-patient rehabilitation facility located in Mishawaka, Indiana receiving gross proceeds of $8.1 million, resulting in a loss of $3.4 million. In July 2024, the Company sold a medical office building located in Panama City, Florida receiving gross proceeds of $11.0 million, resulting in a gain of $1.7 million. In September 2024, the Company sold a medical office building located in Panama City Beach, Florida receiving gross proceeds of $1.1 million, resulting in a gain of $0.1 million. In December 2024, the Company sold two medical office buildings located in Carson City, Nevada receiving gross proceeds of $1.0 million, resulting in a loss of $2.4 million. In December 2024, the Company sold three medical office buildings located in Ellijay, Georgia receiving gross proceeds of $4.3 million, resulting in a gain of $0.7 million. In December 2024, in connection with the formation of the Joint Venture, the Company sold two assets to the Joint Venture consisting of a medical office building located in High Point, North Carolina receiving gross proceeds of $28.0 million resulting in gain of $6.2 million and a medical office building located in Fort Worth, Texas receiving gross proceeds of $7.2 million, resulting in a gain of $1.3 million. A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2024 is as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Site | ​ | Tenant | ​ | Acquired Lease | ​ | Gross Investment in
​ | ​ ​ ​ | Land | ​ ​ ​ | Building | ​ ​ | Improvements | ​ ​ | Improvements | ​ ​ | Intangible Assets | ​ ​ | Real Estate
Balances as of December 31, 2023 | ​ | $ | 164,315 | ​ | $ | 1,035,705 | ​ | $ | 21,974 | ​ | $ | 66,358 | ​ | $ | 138,617 | ​ | $ | 1,426,969
Facility Acquired – Date Acquired: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Minot – 7/11/24 | ​ | ​ | 935 | ​ | ​ | 7,324 | ​ | ​ | 144 | ​ | ​ | 103 | ​ | ​ | 676 | ​ | ​ | 9,182
Clinton – 7/11/24 | ​ | ​ | 938 | ​ | ​ | 4,829 | ​ | ​ | 188 | ​ | ​ | 256 | ​ | ​ | 657 | ​ |  | 6,868
Westland – 7/11/24 | ​ | ​ | 921 | ​ | ​ | 3,630 | ​ | ​ | 157 | ​ | ​ | 99 | ​ | ​ | 540 | ​ | ​ | 5,347
Cerritos – 7/11/24 | ​ | ​ | 3,424 | ​ | ​ | 1,244 | ​ | ​ | 107 | ​ | ​ | 106 | ​ | ​ | 392 | ​ | ​ | 5,273
Spartanburg – 7/11/24 | ​ | ​ | 890 | ​ | ​ | 2,613 | ​ | ​ | 168 | ​ | ​ | 390 | ​ | ​ | 517 | ​ | ​ | 4,578
Conway – 10/2/24 | ​ | ​ | 2,430 | ​ | ​ | 7,415 | ​ | ​ | 188 | ​ | ​ | 372 | ​ | ​ | 897 | ​ | ​ | 11,302
Little Rock – 10/2/24 | ​ | ​ | 1,449 | ​ | ​ | 6,579 | ​ | ​ | 164 | ​ | ​ | 284 | ​ | ​ | 741 | ​ | ​ | 9,217
Russellville – 10/2/24 | ​ | ​ | 1,086 | ​ | ​ | 4,022 | ​ | ​ | 218 | ​ | ​ | 205 | ​ | ​ | 491 | ​ | ​ | 6,022
Sarasota – 10/2/24 | ​ | ​ | 643 | ​ | ​ | 4,133 | ​ | ​ | — | ​ | ​ | 548 | ​ | ​ | 712 | ​ | ​ | 6,036
Venice – 10/2/24 | ​ | ​ | 1,102 | ​ | ​ | 2,830 | ​ | ​ | 123 | ​ | ​ | 187 | ​ | ​ | 426 | ​ | ​ | 4,668
Ruskin – 10/2/24 | ​ | ​ | 242 | ​ | ​ | 1,443 | ​ | ​ | 28 | ​ | ​ | 45 | ​ | ​ | 175 | ​ | ​ | 1,933
6807 Bradenton – 10/2/24 | ​ | ​ | 1,225 | ​ | ​ | 626 | ​ | ​ | 22 | ​ | ​ | 68 | ​ | ​ | 180 | ​ | ​ | 2,121
2101 Bradenton – 10/2/24 | ​ | ​ | 967 | ​ | ​ | 1,372 | ​ | ​ | 52 | ​ | ​ | 64 | ​ | ​ | 235 | ​ | ​ | 2,690
2203 Bradenton – 10/2/24 | ​ | ​ | 408 | ​ | ​ | 913 | ​ | ​ | 35 | ​ | ​ | 37 | ​ | ​ | 132 | ​ | ​ | 1,525
6002 Bradenton – 10/2/24 | ​ | ​ | 1,679 | ​ | ​ | 2,985 | ​ | ​ | 112 | ​ | ​ | 190 | ​ | ​ | 463 | ​ | ​ | 5,429
Capitalized costs(1) | ​ |  | — | ​ | ​ | 5,494 | ​ | ​ | 1,481 | ​ | ​ | 4,828 | ​ | ​ | — | ​ | ​ | 11,803
Total Additions: | ​ | ​ | 18,339 | ​ | ​ | 57,452 | ​ | ​ | 3,187 | ​ | ​ | 7,782 | ​ | ​ | 7,234 | ​ | ​ | 93,994
Facility Sold – Date Sold: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mishawaka – 6/27/24 | ​ | ​ | (1,924) | ​ | ​ | (10,084) | ​ | ​ | (75) | ​ | ​ | (1,798) | ​ | ​ | (2,223) | ​ | ​ | (16,104)
Panama City – 7/12/24 | ​ | ​ | (1,117) | ​ | ​ | (7,201) | ​ | ​ | (165) | ​ | ​ | (841) | ​ | ​ | (1,141) | ​ | ​ | (10,465)
Panama City Beach – 9/19/24 | ​ | ​ | (272) | ​ | ​ | (606) | ​ | ​ | (21) | ​ | ​ | (84) | ​ | ​ | (149) | ​ | ​ | (1,132)
Carson City – 12/6/2024 | ​ | ​ | (760) | ​ | ​ | (3,268) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (4,028)
Ellijay – 12/17/2024 | ​ | ​ | (777) | ​ | ​ | (2,929) | ​ | ​ | (136) | ​ | ​ | (408) | ​ | ​ | (870) | ​ | ​ | (5,120)
High Point – 12/20/2024(2) | ​ | ​ | (1,749) | ​ | ​ | (20,417) | ​ | ​ | (504) | ​ | ​ | (869) | ​ | ​ | (1,656) | ​ | ​ | (25,195)
Fort Worth – 12/20/2024(2) | ​ | ​ | (1,487) | ​ | ​ | (3,333) | ​ | ​ | (251) | ​ | ​ | (445) | ​ | ​ | (787) | ​ | ​ | (6,303)
Total Dispositions: | ​ | ​ | (8,086) | ​ | ​ | (47,838) | ​ | ​ | (1,152) | ​ | ​ | (4,445) | ​ | ​ | (6,826) | ​ | ​ | (68,347)
Impairment of investment properties(3) | ​ | ​ | (268) | ​ | ​ | (1,300) | ​ | ​ | (36) | ​ | ​ | (16) | ​ | ​ | (80) | ​ | ​ | (1,700)
Balances as of December 31, 2024 | ​ | $ | 174,300 | ​ | $ | 1,044,019 | ​ | $ | 23,973 | ​ | $ | 69,679 | ​ | $ | 138,945 | ​ | $ | 1,450,916
(1) | Represents capital projects that were completed and placed in service during the year ended December 31, 2024 related to the Company’s existing facilities.
(2) | These two facilities were sold to the Joint Venture in connection with its formation.
(3) | In December 2024, the Company entered into an agreement to sell its facility located in Derby, Kansas. The Company recognized an impairment loss of $1.7 million during the year ended December 31, 2024 to reduce the carrying value of the asset to its fair value. The fair value was determined to be the contractual sales price less commissions and fees.
Lease Intangible Assets and Liabilities The following is a summary of the carrying amount of lease intangible assets and liabilities:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, 2025
​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​
​ | ​ ​ ​ | Cost | ​ ​ ​ | Amortization | ​ ​ ​ | Net
Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
In-place leases | ​ | $ | 82,590 | ​ | $ | (58,294) | ​ | $ | 24,296
Above market leases | ​ |  | 24,024 | ​ |  | (15,258) | ​ |  | 8,766
Leasing costs | ​ |  | 37,959 | ​ |  | (25,017) | ​ |  | 12,942
​ | ​ | $ | 144,573 | ​ | $ | (98,569) | ​ | $ | 46,004
Liability | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Below market leases | ​ | $ | 17,335 | ​ | $ | (12,391) | ​ | $ | 4,944
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, 2024
​ | ​ ​ ​ | ​ | ​ | ​ ​ ​ | Accumulated | ​ ​ ​ | ​ | ​
​ | ​ | Cost | ​ | Amortization | ​ | Net
Assets |  | ​ | ​ |  | ​ | ​ |  | ​ | ​
In-place leases | ​ | $ | 77,698 | ​ | $ | (50,714) | ​ | $ | 26,984
Above market leases | ​ |  | 24,599 | ​ |  | (13,201) | ​ |  | 11,398
Leasing costs | ​ |  | 36,648 | ​ |  | (21,326) | ​ |  | 15,322
​ | ​ | $ | 138,945 | ​ | $ | (85,241) | ​ | $ | 53,704
Liability | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Below market leases | ​ | $ | 14,073 | ​ | $ | (10,137) | ​ | $ | 3,936
​ The following is a summary of the acquired lease intangible amortization:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024 | ​ ​ ​ | 2023
Amortization expense related to in-place leases | ​ | $ | 9,568 | ​ | $ | 9,942 | ​ | $ | 11,612
Amortization expense related to leasing costs | ​ | $ | 4,449 | ​ | $ | 4,544 | ​ | $ | 5,079
Decrease in rental revenue related to above market leases | ​ | $ | 2,918 | ​ | $ | 3,180 | ​ | $ | 3,384
Increase in rental revenue related to below market leases | ​ | $ | (2,271) | ​ | $ | (2,009) | ​ | $ | (2,332)
​ As of December 31, 2025, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | ​ | ​ ​ ​ | ​ | ​
​ | ​ | Net Decrease | ​ | Net Increase
​ | ​ | in Revenue | ​ | in Expense
2026 | ​ | $ | (477) | ​ | $ | 12,830
2027 | ​ |  | (471) | ​ |  | 9,408
2028 | ​ |  | (779) | ​ |  | 6,695
2029 | ​ |  | (831) | ​ |  | 4,196
2030 | ​ | ​ | (648) | ​ | ​ | 1,785
Thereafter | ​ |  | (615) | ​ |  | 2,324
Total | ​ | $ | (3,821) | ​ | $ | 37,238
​ For the year ended December 31, 2025, the weighted average amortization period for asset lease intangibles and liability lease intangibles are 2.8 years and 2.3 years, respectively. Investment in Unconsolidated Joint Venture As of December 31, 2025, the Company had one investment in an unconsolidated Joint Venture, which as of December 31, 2025 held investments in two properties located in North Carolina and Texas. The Company retains a 12.5% interest in the Joint Venture. The Company’s maximum exposure related to the Joint Venture is limited to the amount of its investment. The Joint Venture had total debt outstanding of $17.6 million as of December 31, 2025, all of which was non-recourse to the Company. For the year ended December 31, 2025, the Company recognized a loss of $150 from its equity interest in the net loss of the Joint Venture.

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