XML 33 R24.htm IDEA: XBRL DOCUMENT

Real Estate and Other Activities (Tables)

9 Months Ended

Sep. 30, 2026

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


	For the Nine Months Ended September 30,
	2026		2025
Land and land improvements	$	25,028	$	23,375
Buildings and other		148,095		23,699
Intangible lease assets — subject to amortization (weighted-average useful life of 20.3 years in 2026)		21,699		—
Investments in unconsolidated real estate joint ventures		—		63,015
Total net assets acquired	$	194,822	$	110,089

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	Capital Commitment (1)		Costs Paid as of September 30, 2026		Cost Remaining
NOR (California)	$	84,249	$	3,952	$	80,297
HSA (Florida)		69,463		10,378		59,085
IMED Hospitales ("IMED") (Spain)		64,784		61,267		3,517
HSA (Louisiana)		18,609		1,404		17,205
Ernest Health (South Carolina)		11,000		13		10,987
	$	248,105	$	77,014	$	171,091

(1)

Includes major projects currently in process for which we will earn additional revenue once the projects are completed.

Components of Total Investment in Financing Leases

The components of our total investment in financing leases consisted of the following (in thousands):


	As of September 30, 2026			As of December 31, 2025
Minimum lease payments receivable	$	554,050		$	570,150
Estimated unguaranteed residual values		203,818			203,818
Less: Unearned income and allowance for credit loss		(505,413	)		(523,746	)
Net investment in direct financing leases		252,455			250,222
Other financing leases (net of allowance for credit loss)		131,964			171,462
Total investment in financing leases	$	384,419		$	421,684

Summary of Investments in Unconsolidated Operating Entities

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


Operator	Current Ownership Percentage	As of September 30, 2026		As of December 31, 2025
MEDIAN	50%	$	460,511	$	486,695
Swiss Medical Network (Infracore)	48.5%		458,227		611,347
Policlinico di Monza	50%		77,526		86,091
HM Hospitales	45%		49,211		53,366
CommonSpirit (Utah partnership)	0%		—		162,278
Total		$	1,045,475	$	1,399,777

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


Operator	As of September 30, 2026		As of December 31, 2025
Swiss Medical Network	$	187,346	$	197,497
Aevis Victoria SA ("Aevis")		72,571		64,859
Priory Group ("Priory")		44,943		43,913
Aspris Children's Services ("Aspris")		15,880		15,910
Total	$	320,740	$	322,179

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 September 30,
	2026		2025
Balance at beginning of the period	$	66,264	$	564,796
Provision for credit loss, net (1)		8,696		85,111
Expected credit loss reserve written off or related to financial instruments sold, repaid, or satisfied		—		—
Balance at end of the period	$	74,960	$	649,907


	For the Nine Months Ended September 30,
	2026			2025
Balance at beginning of the year	$	553,297		$	511,473
Provision for credit loss, net (1)		47,153			138,434
Expected credit loss reserve written off or related to financial instruments sold, repaid, or satisfied (2)		(525,490	)		—
Balance at end of the period	$	74,960		$	649,907

(1)

The amount in 2026 is primarily related to loans to Tenor and Insight, whereas, the amount in 2025 is primarily related to Prospect. See "Leasing Operations (Lessor)" in this Note 3 for further discussion.

(2)

The amount in 2026 is primarily related to write-offs of previously reserved Prospect mortgages and other financing leases. 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 September 30, 2026					As of December 31, 2025
Operators	Total Assets (1)		Percentage of Total Assets			Total Assets (1)		Percentage of Total Assets
Circle Health Ltd ("Circle")	$	2,047,298		14.2	%	$	2,121,848		14.1	%
HSA		1,268,331		8.8	%		1,200,996		8.0	%
Priory		1,267,706		8.8	%		1,301,888		8.7	%
Lifepoint Behavioral Health		783,455		5.5	%		809,492		5.4	%
Lifepoint Health		752,041		5.2	%		458,055		3.1	%
Other operators		6,198,965		43.1	%		7,103,935		47.3	%
Other assets		2,075,900		14.4	%		2,005,561		13.4	%
Total	$	14,393,696		100.0	%	$	15,001,775		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.

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


	As of September 30, 2026					As of December 31, 2025
U.S. States and Other Countries	Total Assets		Percentage of Total Assets			Total Assets		Percentage of Total Assets
Texas	$	1,342,420		9.3	%	$	1,427,391		9.5	%
California		1,019,239		7.1	%		977,890		6.5	%
Florida		938,178		6.5	%		834,940		5.6	%
Arizona		323,495		2.3	%		328,873		2.2	%
Ohio		298,358		2.1	%		330,189		2.2	%
All other states		2,091,815		14.5	%		2,480,182		16.5	%
Other domestic assets		1,130,082		7.8	%		1,072,900		7.2	%
Total U.S.	$	7,143,587		49.6	%	$	7,452,365		49.7	%
United Kingdom	$	4,050,310		28.1	%	$	4,184,188		27.9	%
Germany		738,266		5.1	%		751,806		5.0	%
Switzerland		718,144		5.0	%		873,703		5.8	%
Spain		309,424		2.2	%		302,323		2.0	%
All other countries		488,147		3.4	%		504,729		3.4	%
Other international assets		945,818		6.6	%		932,661		6.2	%
Total international	$	7,250,109		50.4	%	$	7,549,410		50.3	%
Grand total	$	14,393,696		100.0	%	$	15,001,775		100.0	%

Total Assets by Facility Type (1)


	As of September 30, 2026					As of December 31, 2025
Facility Types	Total Assets		Percentage of Total Assets			Total Assets		Percentage of Total Assets
General acute care hospitals	$	8,197,967		57.0	%	$	8,769,909		58.5	%
Behavioral health facilities		2,383,953		16.5	%		2,445,418		16.3	%
Post acute care facilities		1,640,825		11.4	%		1,671,616		11.1	%
Freestanding ER/urgent care facilities		95,051		0.7	%		109,271		0.7	%
Other assets		2,075,900		14.4	%		2,005,561		13.4	%
Total	$	14,393,696		100.0	%	$	15,001,775		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 September 30, 2026.

On a revenue basis, concentration in 2026 compared to the same periods of 2025 is as follows:

Total Revenues by Geographic Location


	For the Three Months Ended September 30,
	2026					2025
Geographic Location	Total Revenues		Percentage of Total Revenues			Total Revenues		Percentage of Total Revenues
Total U.S.	$	131,603		52.6	%	$	120,650		50.8	%
United Kingdom		97,063		38.8	%		95,713		40.3	%
All other countries		21,474		8.6	%		21,159		8.9	%
Grand total	$	250,140		100.0	%	$	237,522		100.0	%

Total Revenues by Facility Type


	For the Three Months Ended September 30,
	2026					2025
Facility Types	Total Revenues		Percentage of Total Revenues			Total Revenues		Percentage of Total Revenues
General acute care hospitals	$	157,580		63.0	%	$	144,760		60.9	%
Behavioral health facilities		54,565		21.8	%		54,726		23.1	%
Post acute care facilities		35,930		14.4	%		36,097		15.2	%
Freestanding ER/urgent care facilities		2,065		0.8	%		1,939		0.8	%
Total	$	250,140		100.0	%	$	237,522		100.0	%

The following shows those tenants that represented 10% or more of our total revenues for the three and nine months ended September 30, 2026 and 2025:


	For the Three Months Ended September 30,
	2026					2025
Operators	Total Revenues		Percentage of Total Revenues			Total Revenues		Percentage of Total Revenues
Circle	$	54,807		21.9	%	$	54,228		22.8	%
Priory		28,279		11.3	%		27,481		11.6	%
Other operators		167,054		66.8	%		155,813		65.6	%
Total	$	250,140		100.0	%	$	237,522		100.0	%


	For the Nine Months Ended September 30,
	2026					2025
Operators	Total Revenues		Percentage of Total Revenues			Total Revenues		Percentage of Total Revenues
Circle	$	164,467		21.6	%	$	158,664		22.6	%
Priory		83,144		10.9	%		78,878		11.2	%
Other operators		513,877		67.5	%		464,138		66.2	%
Total	$	761,488		100.0	%	$	701,680		100.0	%

- Definition

Tabular disclosure of business combination. Includes, but is not limited to, recognized asset and liability.

+ References + Details