REAL ESTATE INVESTMENTS, NET (Tables)

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Schedule of Investment in Owned Properties

The following table summarizes the Company’s investment in owned properties held for use at June 30, 2023 and December 31, 2022 (dollars in thousands):

	June 30, 2023		December 31, 2022
Land	$	266,010	$	238,738
Buildings and improvements	1,575,661		1,483,133
Integral equipment, furniture and fixtures	97,755		97,199
Identified intangible assets	2,832		2,832
Real estate investments	1,942,258		1,821,902
Accumulated depreciation and amortization	(414,024)		(400,492)
Real estate investments, net	$	1,528,234	$	1,421,410

Schedule of Total Future Contractual Minimum Rental Income

As of June 30, 2023, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements and assets held for sale, was as follows (dollars in thousands):

Year	Amount
2023 (six months)	$	98,155
2024	197,155
2025	198,310
2026	198,853
2027	195,687
2028	193,433
Thereafter	941,966
Total	$	2,023,559

Schedule Of Tenant Purchase Options

Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands):

Asset Type(1)	Properties		Lease Expiration	Option Period Open Date(2)		Option Type(3)	Current Cash Rent(4)
SNF	1		March 2029	4/1/2022	(5)	A / B(7)	832
SNF / Campus	2	(8)	October 2032	1/1/2024	(6)	A	1,097
SNF	4		November 2034	12/1/2024	(5)	A	3,891

(1) Excludes a purchase option on an 11 building SNF portfolio classified as held for sale as of June 30, 2023 and representing $5.1 million of current cash rent. Tenant is currently not eligible to elect the option.

(2) The Company has not received notice of exercise for the option periods that are currently open.

(3) Option type includes:

A - Fixed base price.

B - Fixed capitalization rate on lease revenue.

(4) Based on annualized cash revenue for contracts in place as of June 30, 2023.

(5) Option window is open until the expiration of the lease term.

(6) Option window is open for six months from the option period open date.

(7) Purchase option reflects two option types.

(8) Includes one property classified as held for sale as of June 30, 2023.

Schedule Of Rental Income

The following table summarizes components of the Company’s rental income (dollars in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Rental Income	2023		2022		2023		2022
Contractual rent due(1)	$	47,752	$	46,801	$	93,922	$	93,779
Straight-line rent	(7)		5		(14)		11
Adjustment for collectibility(2)	—		—		—		(977)
Total	$	47,745	$	46,806	$	93,908	$	92,813

(1)    Includes initial cash rent and tenant operating expense reimbursements, as adjusted for applicable rental escalators and rent increases due to capital expenditures funded by the Company. For tenants on a cash basis, this represents the lesser of the amount that would be recognized on a straight-line basis or cash that has been received. Tenant operating expense reimbursements for the three months ended June 30, 2023 and 2022 were $1.2 million and $0.7 million, respectively. Tenant operating expense reimbursements for the six months ended June 30, 2023 and 2022 were $1.9 million and $1.3 million, respectively.

(2)    During the six months ended June 30, 2022, and in accordance with Accounting Standards Codification 842, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from four existing and former operators. As such, the Company reversed $0.7 million of operating expense reimbursements, $0.2 million of contractual rent and $0.1 million of straight-line rent during the six months ended June 30, 2022. If lease payments are subsequently deemed probable of collection, the Company will reestablish the receivable which will result in an increase in rental income for such recoveries.

Schedule of Recent Real Estate Acquisitions

The following table summarizes the Company’s acquisitions for the six months ended June 30, 2023 (dollars in thousands):

Type of Property	Purchase Price(1)		Initial Annual Cash Rent(2)		Number of Properties	Number of Beds/Units(3)
Skilled nursing	$	107,858	$	9,085	7	871
Multi-service campuses	25,276		1,916		1	168
Assisted living	39,319		3,495		4	241
Total	$	172,453	$	14,496	12	1,280

(1) Purchase price includes capitalized acquisition costs.

(2) Initial annual cash rent represents initial cash rent for the first twelve months excluding the impact of rent abatement in the first one to three months, if applicable.

(3) The number of beds/units includes operating beds at the acquisition date.