INVESTMENT IN REAL ESTATE PROPERTIES

6 Months Ended

Jun. 30, 2024

The Company’s real estate properties held for investment consisted of the following (dollars in thousands):

As of June 30, 2024


Property Type	Number of Properties	Number of Beds/Units	Total Real Estate at Cost		Accumulated Depreciation		Total Real Estate Investments, Net
Skilled Nursing/Transitional Care	236	26,538	$	3,039,127	$	(574,720)	$	2,464,407
Senior Housing - Leased	39	3,319	511,809		(98,539)		413,270
Senior Housing - Managed	66	6,341	1,399,996		(295,238)		1,104,758
Behavioral Health	18	1,159	479,188		(73,131)		406,057
Specialty Hospitals and Other	15	392	225,498		(50,163)		175,335
	374	37,749	5,655,618		(1,091,791)		4,563,827
Corporate Level			3,122		(790)		2,332
			$	5,658,740	$	(1,092,581)	$	4,566,159

As of December 31, 2023


Property Type	Number of Properties	Number of Beds/Units	Total Real Estate at Cost		Accumulated Depreciation		Total Real Estate Investments, Net
Skilled Nursing/Transitional Care	241	26,769	$	3,050,861	$	(535,653)	$	2,515,208
Senior Housing - Leased	43	3,473	573,274		(109,601)		463,673
Senior Housing - Managed	61	6,041	1,289,485		(255,803)		1,033,682
Behavioral Health	18	1,159	496,737		(71,943)		424,794
Specialty Hospitals and Other	15	392	225,443		(47,454)		177,989
	378	37,834	5,635,800		(1,020,454)		4,615,346
Corporate Level			2,547		(632)		1,915
			$	5,638,347	$	(1,021,086)	$	4,617,261


	June 30, 2024		December 31, 2023
Building and improvements	$	4,864,328	$	4,843,258
Furniture and equipment	239,384		238,185
Land improvements	10,812		10,306
Land	544,216		546,598
Total real estate at cost	5,658,740		5,638,347
Accumulated depreciation	(1,092,581)		(1,021,086)
Total real estate investments, net	$	4,566,159	$	4,617,261

Capital and Other Expenditures

As of June 30, 2024, the Company’s aggregate commitment for future capital and other expenditures associated with facilities leased under triple-net operating leases was approximately $17 million. These commitments are principally for improvements to its facilities.

Senior Housing - Managed Communities

The Company’s Senior Housing - Managed communities offer residents certain ancillary services that are not contemplated in the lease with each resident (i.e., housekeeping, laundry, guest meals, etc.). These services are provided and paid for in addition to the standard services included in each resident lease (i.e., room and board, standard meals, etc.). The Company bills residents for ancillary services one month in arrears and recognizes revenue as the services are provided, as the Company has no continuing performance obligation related to those services. Resident fees and services include ancillary service revenue of $0.9 million and $1.6 million for the three and six months ended June 30, 2024, respectively, and $0.4 million and $0.9 million for the three and six months ended June 30, 2023, respectively.

During the three and six months ended June 30, 2024, the Company received $0.1 million and $1.3 million, respectively, of insurance proceeds related to a fire that occurred at one of the Company’s Senior Housing - Managed communities, and recorded $0.9 million of business interruption insurance income during the six months ended June 30, 2024 which is included in other income on the accompanying consolidated statements of income. No such income was recorded during the three months ended June 30, 2024, and the remaining proceeds were recorded as expense reimbursements in Senior Housing - Managed portfolio operating expenses on the accompanying consolidated statements of income.

Investment in Unconsolidated Joint Ventures

The following is a summary of the Company’s investment in unconsolidated joint ventures (dollars in thousands):


	Property Type	Number of Properties as of June 30, 2024	Ownership as of June 30, 2024 (1)		Book Value
					June 30, 2024		December 31, 2023
Sienna Joint Venture	Senior Housing - Managed	12	50	%	$	114,164	$	119,724
Marlin Spring Joint Venture	Senior Housing - Managed	4	85	%	15,609		17,119
					$	129,773	$	136,843

(1) These investments are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.