INVESTMENT IN REAL ESTATE PROPERTIES

9 Months Ended

Sep. 30, 2024

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

As of September 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	233	26,330	$	2,992,712	$	(586,817)	$	2,405,895
Senior Housing - Leased	39	3,319	512,037		(102,191)		409,846
Senior Housing - Managed	68	6,588	1,487,337		(307,545)		1,179,792
Behavioral Health	18	1,164	479,189		(76,518)		402,671
Specialty Hospitals and Other	15	392	225,498		(51,517)		173,981
	373	37,793	5,696,773		(1,124,588)		4,572,185
Corporate Level			2,965		(882)		2,083
			$	5,699,738	$	(1,125,470)	$	4,574,268

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


	September 30, 2024		December 31, 2023
Building and improvements	$	4,897,747	$	4,843,258
Furniture and equipment	243,226		238,185
Land improvements	10,919		10,306
Land	547,846		546,598
Total real estate at cost	5,699,738		5,638,347
Accumulated depreciation	(1,125,470)		(1,021,086)
Total real estate investments, net	$	4,574,268	$	4,617,261

During the three and nine months ended September 30, 2023, the Company received $6.2 million of insurance proceeds related to a vacant facility owned by the Company that suffered damages as a result of vandalism and theft and recorded a $3.7 million gain related to the property damage which is included in other income on the accompanying consolidated statements of income (loss).

Capital and Other Expenditures

As of September 30, 2024, the Company’s aggregate commitment for future capital and other expenditures associated with facilities leased under triple-net operating leases was approximately $15 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 $1.1 million and $2.7 million for the three and nine months ended September 30, 2024, respectively, and $0.4 million and $1.4 million for the three and nine months ended September 30, 2023, respectively.

The Company received insurance proceeds related to a fire that occurred at one of the Company’s Senior Housing - Managed communities of $0.1 million and $1.4 million during the three and nine months ended September 30, 2024, respectively, and $1.1 million during the three and nine months ended September 30, 2023. The Company recorded business interruption income, which is included in other income on the accompanying consolidated statements of income (loss), of $0.9 million during the nine months ended September 30, 2024, and $0.5 million during the three and nine months ended September 30, 2023. No business interruption income was recorded during the three months ended September 30, 2024. The remaining proceeds were recorded as expense reimbursements in Senior Housing - Managed portfolio operating expenses on the accompanying consolidated statements of income (loss).

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 September 30, 2024	Ownership as of September 30, 2024 (1)		Book Value
					September 30, 2024		December 31, 2023
Sienna Joint Venture	Senior Housing - Managed	12	50	%	$	115,299	$	119,724
Marlin Spring Joint Venture	Senior Housing - Managed	4	85	%	15,512		17,119
					$	130,811	$	136,843

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