INVESTMENT IN REAL ESTATE PROPERTIES

12 Months Ended

Dec. 31, 2024

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

As of December 31, 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	224	25,492	$	2,926,349	$	(588,107)	$	2,338,242
Senior Housing - Leased	39	3,319	508,586		(102,111)		406,475
Senior Housing - Managed	69	6,680	1,474,267		(278,328)		1,195,939
Behavioral Health	17	1,164	478,318		(79,819)		398,499
Specialty Hospitals and Other	15	392	225,498		(52,872)		172,626
	364	37,047	5,613,018		(1,101,237)		4,511,781
Corporate Level			2,746		(793)		1,953
			$	5,615,764	$	(1,102,030)	$	4,513,734

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


	As of December 31,
	2024		2023
Building and improvements	$	4,853,151	$	4,843,258
Furniture and equipment	207,265		238,185
Land improvements	11,813		10,306
Land	543,535		546,598
Total real estate at cost	5,615,764		5,638,347
Accumulated depreciation	(1,102,030)		(1,021,086)
Total real estate investments, net	$	4,513,734	$	4,617,261

During the year ended December 31, 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 (expense) on the accompanying consolidated statements of income (loss).

Capital and Other Expenditures

As of December 31, 2024, the Company’s aggregate commitment for future capital and other expenditures associated with facilities leased under triple-net operating leases was approximately $16 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 includes ancillary service revenue of $3.9 million, $2.0 million and $1.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company received business interruption insurance proceeds related to a fire that occurred at one of the Company’s Senior Housing - Managed communities of $2.1 million and $1.1 million during the years ended December 31, 2024 and 2023, respectively. The Company recorded business interruption insurance income, which is included in other income (expense) on the accompanying consolidated statements of income (loss), of $1.7 million and $0.5 million during the years ended December 31, 2024 and 2023, respectively. The remaining proceeds were recorded as expense reimbursements in Senior Housing - Managed portfolio operating expenses on the accompanying consolidated statements of income (loss). Additionally, during the year ended December 31, 2024, the Company received property insurance proceeds of $2.4 million and recorded a $0.5 million gain related to the property damage which is included in other income (expense) 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 December 31, 2024	Ownership as of December 31, 2024 (1)		Book Value as of December 31,
					2024		2023
Sienna Joint Venture	Senior Housing - Managed	12	50	%	$	107,732	$	119,724
Marlin Spring Joint Venture	Senior Housing - Managed	4	85	%	14,071		17,119
					$	121,803	$	136,843

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

During 2022, the Company concluded that the estimated fair value of its investment in its joint venture with affiliates of TPG Real Estate, the real estate platform of TPG (the “Enlivant Joint Venture”) had declined to zero. This decline was deemed to be other-than-temporary, and the Company recorded an impairment charge totaling $57.8 million during the year ended December 31, 2022 which is included in loss from unconsolidated joint ventures on the accompanying consolidated statements of income (loss). Effective January 1, 2023, the Company discontinued applying the equity method of accounting to the Enlivant Joint Venture, in which it had a 49% equity interest. Effective May 1, 2023, the Company withdrew and resigned its membership in the Enlivant Joint Venture and accordingly, no longer has an equity interest in the Enlivant Joint Venture as of such date.

Summarized Financial Information

The following tables present summarized financial information for the Company’s investments in unconsolidated joint ventures (in thousands):


	As of December 31,
	2024		2023
Total assets	$	313,480	$	353,779
Total liabilities	97,722		106,490
Member’s equity	215,758		247,289


	Year Ended December 31,
	2024		2023		2022 (1)
Total revenues	$	70,615	$	64,446	$	351,073
Operating expenses	49,455		47,811		324,462
Net loss	(5,559)		(9,823)		(66,171)

Company’s share of net loss	$	(397)	$	(2,897)	$	(32,581)
Basis adjustments	—		—		7,673
Other-than-temporary impairment	—		—		57,778
Loss from unconsolidated joint venture	$	(397)	$	(2,897)	$	(98,032)

(1) For the year ended December 31, 2022, for the Enlivant Joint Venture (i) certain amounts in the financial information have been reclassified to conform to Sabra’s presentation, (ii) except for basis adjustments, other-than-temporary impairment and loss from unconsolidated joint venture, the financial information reflects the historical cost basis of the assets which predated the Company’s investment in the joint venture and (iii) the Company’s share of net loss excludes certain equity-like compensation expense and the related income tax impact as such expense is not the responsibility of the Company under the terms of the joint venture agreement. Additionally, TPG caused the Enlivant Joint Venture to fund $25.0 million of payments to Enlivant beyond amounts contractually required under the management agreement. These payments were to support the operations of Enlivant and are reflected as operating expenses. Funding for the support payments did not require capital contributions from Sabra but rather were funded with proceeds received by the Enlivant Joint Venture from TPG for the issuance of senior preferred interests or with cash on hand at the Enlivant Joint Venture.