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Real Estate and Other Activities (Tables)
 6 Months Ended
Jun. 30, 2025
Real Estate [Abstract]  
Net Assets Acquired

We acquired or invested in the following net assets (in thousands):

 

 

 

For the Six Months
Ended June 30,

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

Land and land improvements

 

$

19,905

 

 

$

—

 

Buildings

 

 

19,409

 

 

 

—

 

Investments in unconsolidated real estate joint ventures

 

 

63,015

 

 

 

107,908

 

Liabilities assumed

 

 

—

 

 

 

(2,290

)

Total net assets acquired

 

$

102,329

 

 

$

105,618

 
Summary of Status on Current Development and Capital Additions Projects

See table below for a status summary of our current development and capital addition projects (in thousands):

 

Property

 

Commitment

 

 

Costs
Paid as of
June 30, 2025

 

 

Cost Remaining

 

IMED Hospitales ("IMED") (Spain)

 

$

56,498

 

 

$

29,877

 

 

$

26,621

 

IMED (Spain)

 

 

41,211

 

 

 

35,654

 

 

 

5,557

 

Lifepoint Behavioral (Kansas)

 

 

20,183

 

 

 

16,761

 

 

 

3,422

 

Surgery Partners (Idaho)

 

 

15,993

 

 

 

13,345

 

 

 

2,648

 

Lifepoint Behavioral (Arizona)

 

 

10,659

 

 

 

5,320

 

 

 

5,339

 

Other (Various)

 

 

554

 

 

 

210

 

 

 

344

 

 

 

$

145,098

 

 

$

101,167

 

 

$

43,931

 
Components of Total Investment in Financing Leases The components of our total investment in financing leases consisted of the following (in thousands):

 

 

 

As of June 30,
   2025

 

 

As of December 31,
   2024

 

Minimum lease payments receivable

 

$

580,646

 

 

$

591,142

 

Estimated unguaranteed residual values

 

 

203,818

 

 

 

203,818

 

Less: Unearned income and allowance for credit loss

 

 

(535,744

)

 

 

(547,770

)

Net investment in direct financing leases

 

 

248,720

 

 

 

247,190

 

Other financing leases (net of allowance for credit loss)

 

 

774,695

 

 

 

810,580

 

Total investment in financing leases

 

$

1,023,415

 

 

$

1,057,770

 

 
Summary of Investments in Unconsolidated Operating Entities

The following is a summary of our investments in unconsolidated real estate joint ventures by operator (amounts in thousands):

 

Operator

 

Ownership Percentage

As of June 30,
   2025

 

 

As of December 31,
   2024

 

Swiss Medical Network

 

70%

$

602,321

 

 

$

483,770

 

Median Kliniken S.á.r.l ("MEDIAN")

 

50%

 

486,653

 

 

 

431,964

 

CommonSpirit (Utah partnership)

 

25%

 

134,439

 

 

 

113,202

 

Policlinico di Monza

 

50%

 

84,080

 

 

 

77,592

 

HM Hospitales

 

45%

 

52,658

 

 

 

49,869

 

Total

 

 

$

1,360,151

 

 

$

1,156,397

 

The following is a summary of our investments in unconsolidated operating entities (amounts in thousands):

 

Operator

 

As of June 30,
   2025

 

 

As of December 31,
   2024

 

Swiss Medical Network

 

$

197,413

 

 

$

172,453

 

Aevis Victoria SA ("Aevis")

 

 

63,609

 

 

 

63,409

 

Priory Group ("Priory")

 

 

44,084

 

 

 

38,739

 

Aspris Children's Services ("Aspris")

 

 

15,929

 

 

 

15,950

 

PHP Holdings

 

 

2,348

 

 

 

149,027

 

Total

 

$

323,383

 

 

$

439,578

 
Summary of Activity in Credit Loss reserves

The following table summarizes the activity in our credit loss reserves (in thousands):

 

 

 

For the Three Months
Ended June 30,

 

 

 

2025

 

 

2024

 

Balance at beginning of the period

 

$

577,455

 

 

$

456,592

 

(Recovery) provision for credit loss, net (1)

 

 

(12,659

)

 

 

81,942

 

Expected credit loss reserve written off or related to financial
     instruments sold, repaid, or satisfied

 

 

—

 

 

 

—

 

Balance at end of the period

 

$

564,796

 

 

$

538,534

 

 

 

 

 

For the Six Months
Ended June 30,

 

 

 

2025

 

 

2024

 

Balance at beginning of the year

 

$

511,473

 

 

$

96,001

 

Provision for credit loss, net (1)

 

 

53,323

 

 

 

442,533

 

Expected credit loss reserve written off or related to financial
     instruments sold, repaid, or satisfied

 

 

—

 

 

 

—

 

Balance at end of the period

 

$

564,796

 

 

$

538,534

 

 

(1)
The amount in 2025 is primarily related to Prospect; whereas, the amount in 2024 is primarily related to loans involving Steward. See "Leasing Operations (Lessor)" in this Note 3 for further discussion.
Schedule of Concentrations of Credit Risk See below for our concentration details (dollars in thousands):

Total Assets by Operator

 

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

Operators

 

Total Assets (1)

 

 

Percentage of
Total Assets

 

 

Total Assets (1)

 

 

Percentage of
Total Assets

 

Circle Health Ltd ("Circle")

 

$

2,195,038

 

 

 

14.5

%

 

$

2,026,778

 

 

 

14.2

%

Priory

 

 

1,340,466

 

 

 

8.8

%

 

 

1,233,462

 

 

 

8.6

%

Healthcare Systems of America

 

 

1,204,109

 

 

 

7.9

%

 

 

1,187,006

 

 

 

8.3

%

Swiss Medical Network

 

 

863,343

 

 

 

5.7

%

 

 

719,632

 

 

 

5.1

%

Lifepoint Behavioral

 

 

816,943

 

 

 

5.4

%

 

 

813,584

 

 

 

5.7

%

Other operators

 

 

6,850,257

 

 

 

45.3

%

 

 

6,624,256

 

 

 

46.3

%

Other assets (2)

 

 

1,880,272

 

 

 

12.4

%

 

 

1,689,876

 

 

 

11.8

%

Total

 

$

15,150,428

 

 

 

100.0

%

 

$

14,294,594

 

 

 

100.0

%
(1)
Total assets by operator are generally comprised of real estate assets, mortgage loans, investments in unconsolidated real estate joint ventures, investments in unconsolidated operating entities, and other loans.
(2)
Includes our investment in PHP Holdings of approximately $2 million and $150 million as of June 30, 2025, and December 31, 2024, respectively - see tenant update described previously in this same Note 3.

 

Total Assets by U.S. State and Country (1)

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

U.S. States and Other Countries

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

Texas

 

$

1,415,603

 

 

 

9.3

%

 

$

1,394,296

 

 

 

9.8

%

California

 

 

943,646

 

 

 

6.3

%

 

 

935,470

 

 

 

6.4

%

Florida

 

 

845,268

 

 

 

5.6

%

 

 

840,876

 

 

 

5.9

%

Arizona

 

 

384,310

 

 

 

2.5

%

 

 

379,801

 

 

 

2.7

%

Ohio

 

 

332,337

 

 

 

2.2

%

 

 

327,577

 

 

 

2.3

%

All other states

 

 

2,621,863

 

 

 

17.3

%

 

 

2,636,587

 

 

 

18.5

%

Other domestic assets

 

 

1,031,221

 

 

 

6.8

%

 

 

951,486

 

 

 

6.6

%

Total U.S.

 

$

7,574,248

 

 

 

50.0

%

 

$

7,466,093

 

 

 

52.2

%

United Kingdom

 

$

4,319,502

 

 

 

28.5

%

 

$

3,985,672

 

 

 

27.9

%

Switzerland

 

 

863,343

 

 

 

5.7

%

 

 

719,632

 

 

 

5.0

%

Germany

 

 

756,490

 

 

 

5.0

%

 

 

672,343

 

 

 

4.7

%

Spain

 

 

285,895

 

 

 

1.9

%

 

 

247,996

 

 

 

1.7

%

All other countries

 

 

501,899

 

 

 

3.3

%

 

 

464,468

 

 

 

3.3

%

Other international assets

 

 

849,051

 

 

 

5.6

%

 

 

738,390

 

 

 

5.2

%

Total international

 

$

7,576,180

 

 

 

50.0

%

 

$

6,828,501

 

 

 

47.8

%

Grand total

 

$

15,150,428

 

 

 

100.0

%

 

$

14,294,594

 

 

 

100.0

%

 

Total Assets by Facility Type (1)

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

Facility Types

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

General acute care hospitals

 

$

8,992,213

 

 

 

59.4

%

 

$

8,493,331

 

 

 

59.4

%

Behavioral health facilities

 

 

2,506,704

 

 

 

16.5

%

 

 

2,376,460

 

 

 

16.7

%

Post acute care facilities

 

 

1,655,572

 

 

 

10.9

%

 

 

1,617,596

 

 

 

11.3

%

Freestanding ER/urgent care facilities

 

 

115,667

 

 

 

0.8

%

 

 

117,331

 

 

 

0.8

%

Other assets

 

 

1,880,272

 

 

 

12.4

%

 

 

1,689,876

 

 

 

11.8

%

Total

 

$

15,150,428

 

 

 

100.0

%

 

$

14,294,594

 

 

 

100.0

%
(1)
For geographic and facility type concentration metrics in the tables above, we allocate our investments in unconsolidated operating entities pro rata based on the gross book value of the real estate. Such pro rata allocations are subject to change from period to period.

On an individual property basis, our largest investment in any single property was less than 2% of our total assets as of June 30, 2025.

On a revenue basis, concentration in 2025 compared to the same periods of 2024 is as follows:

Total Revenues by Geographic Location

 

 

 

For the Three Months Ended June 30,

 

 

 

2025

 

 

2024

 

Geographic Location

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Total U.S.

 

$

126,067

 

 

 

52.4

%

 

$

160,461

 

 

 

60.2

%

United Kingdom

 

 

93,924

 

 

 

39.1

%

 

 

88,164

 

 

 

33.1

%

All other countries

 

 

20,368

 

 

 

8.5

%

 

 

17,935

 

 

 

6.7

%

Grand total

 

$

240,359

 

 

 

100.0

%

 

$

266,560

 

 

 

100.0

%

Total Revenues by Facility Type

 

 

 

For the Three Months Ended June 30,

 

 

 

2025

 

 

2024

 

Facility Types

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

General acute care hospitals

 

$

147,648

 

 

 

61.4

%

 

$

173,133

 

 

 

65.0

%

Behavioral health facilities

 

 

53,545

 

 

 

22.3

%

 

 

52,957

 

 

 

19.9

%

Post acute care facilities

 

 

37,176

 

 

 

15.5

%

 

 

34,493

 

 

 

12.9

%

Freestanding ER/urgent care facilities

 

 

1,990

 

 

 

0.8

%

 

 

5,977

 

 

 

2.2

%

Total

 

$

240,359

 

 

 

100.0

%

 

$

266,560

 

 

 

100.0

%

The following shows those tenants that represented 10% or more of our total revenues for the three and six months ended June 30, 2025 and 2024:

 

 

 

For the Three Months Ended June 30,

 

 

 

2025

 

 

2024

 

Operators

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Circle

 

$

53,725

 

 

 

22.4

%

 

$

50,555

 

 

 

19.0

%

Priory

 

 

26,456

 

 

 

11.0

%

 

 

24,633

 

 

 

9.2

%

Other operators

 

 

160,178

 

 

 

66.6

%

 

 

191,372

 

 

 

71.8

%

Total

 

$

240,359

 

 

 

100.0

%

 

$

266,560

 

 

 

100.0

%

 

 

 

For the Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

Operators

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Circle

 

$

104,436

 

 

 

22.5

%

 

$

101,567

 

 

 

18.9

%

Priory

 

 

51,397

 

 

 

11.1

%

 

 

50,515

 

 

 

9.4

%

Other operators

 

 

308,325

 

 

 

66.4

%

 

 

385,794

 

 

 

71.7

%

Total

 

$

464,158

 

 

 

100.0

%

 

$

537,876

 

 

 

100.0

%