INVESTMENT IN REAL ESTATE PROPERTIES

9 Months Ended

Sep. 30, 2025

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

As of September 30, 2025


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	217	24,518	$	2,874,678	$	(635,062)	$	2,239,616
Senior Housing - Leased	32	2,668	377,287		(88,351)		288,936
Senior Housing - Managed	83	8,282	1,888,163		(343,656)		1,544,507
Behavioral Health	16	1,138	476,355		(89,853)		386,502
Specialty Hospitals and Other	15	392	225,498		(56,936)		168,562
	363	36,998	5,841,981		(1,213,858)		4,628,123
Corporate Level			2,799		(1,080)		1,719
			$	5,844,780	$	(1,214,938)	$	4,629,842

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


	September 30, 2025		December 31, 2024
Building and improvements	$	5,049,667	$	4,853,151
Furniture and equipment	217,990		207,265
Land improvements	12,174		11,813
Land	564,949		543,535
Total real estate at cost	5,844,780		5,615,764
Accumulated depreciation	(1,214,938)		(1,102,030)
Total real estate investments, net	$	4,629,842	$	4,513,734

Capital and Other Expenditures

As of September 30, 2025, the Company’s aggregate commitment for future capital and other expenditures associated with facilities leased under triple-net operating leases was approximately $18 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 $1.2 million and $3.5 million for the three and nine months ended September 30, 2025, respectively, and $1.1 million and $2.7 million for the three and nine months ended September 30, 2024, respectively.

The Company received property insurance proceeds related to a fire that occurred at one of the Company’s Senior Housing - Managed communities in 2022 and recorded a $0.2 million gain and a $1.3 million gain related to the property damage which is included in other (expense) income on the accompanying consolidated statements of income during the three and nine months ended September 30, 2025, respectively. Additionally, the Company received business interruption insurance proceeds of $0.4 million during each of the three and nine months ended September 30, 2025, and $0.1 million and $1.4 million during the three and nine months ended September 30, 2024, respectively. The Company recorded business interruption income, which is included in other (expense) income on the accompanying consolidated statements of income, of $0.4 million during each of the three and nine months ended September 30, 2025, and $0.9 million during the nine months ended September 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. No business interruption income was recognized during the three months ended September 30, 2024.

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, 2025	Ownership as of September 30, 2025 (1)		Book Value
					September 30, 2025		December 31, 2024
Sienna Joint Venture	Senior Housing - Managed	12	50	%	$	108,983	$	107,732
Marlin Spring Joint Venture	Senior Housing - Managed	4	85	%	8,873		14,071
					$	117,856	$	121,803

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