Note 8 - Long-term Leases

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

Note 8 – Long-Term Leases

Operating Leases

At September 30, 2024, we lease from NHI the real property of 28 skilled nursing facilities, five assisted living centers and three independent living centers under one lease agreement. As part of the lease agreement, we sublease four Florida skilled nursing facilities to a third-party operator. The lease includes base rent plus a percentage rent. The annual base rent is $32,625,000 in 2024, $32,225,000 in 2025, and $31,975,000 in 2026 with the lease term expiring in December 2026. The percentage rent is based on a quarterly calculation of revenue increases and is payable on a quarterly basis. Total facility rent expense to NHI was $10,085,000 and $9,300,000 for the three months ended September 30, 2024 and 2023, respectively. Total facility rent expense to NHI was $29,371,000 and $27,719,000 for the nine months ended September 30, 2024 and 2023, respectively.

Minimum Lease Payments

The following table summarizes the maturity of our operating lease liabilities as of September 30, 2024 (in thousands):

	Operating Leases
2025	$	35,858
2026		35,183
2027		10,471
2028		1,702
2029		1,424
Thereafter		11,768
Total minimum lease payments		96,406
Less: amounts representing interest		(11,961	)
Present value of future minimum lease payments		84,445
Less: current portion		(31,366	)
Noncurrent lease liabilities	$	53,079