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REAL ESTATE INVESTMENTS, NET (Tables)
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022 (dollars in thousands):
September 30, 2023December 31, 2022
Land$270,806 $238,738 
Buildings and improvements1,589,195 1,483,133 
Integral equipment, furniture and fixtures97,957 97,199 
Identified intangible assets2,832 2,832 
Real estate investments1,960,790 1,821,902 
Accumulated depreciation and amortization(424,742)(400,492)
Real estate investments, net$1,536,048 $1,421,410 
Schedule of Total Future Contractual Minimum Rental Income As of September 30, 2023, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements, assets held for sale and assets being repurposed, was as follows (dollars in thousands):
YearAmount
2023 (three months)$49,490 
2024195,754 
2025196,908 
2026197,245 
2027194,079 
2028191,825 
Thereafter960,555 
Total$1,985,856 
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)
PropertiesLease Expiration
Option Period Open Date(2)
Option Type(3)
Current Cash Rent(4)
SNF1March 20294/1/2022
(5)
A / B(7)
832 
SNF / Campus2
(8)
October 20321/1/2024
(6)
A1,097 
SNF4November 203412/1/2024
(5)
A3,891 
(1) Excludes a purchase option on an 11 building SNF portfolio classified as held for sale as of September 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 September 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 September 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 September 30,
For the Nine Months Ended September 30,
Rental Income2023202220232022
Contractual rent due(1)
$51,225 $47,015 $145,147 $140,794 
Straight-line rent(7)3 (21)14 
Adjustment for collectibility(2)
— — — (977)
Total$51,218 $47,018 $145,126 $139,831 
(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 September 30, 2023 and 2022 were $2.0 million and $0.7 million, respectively. Tenant operating expense reimbursements for the nine months ended September 30, 2023 and 2022 were $3.9 million and $2.0 million, respectively.
(2) During the nine months ended September 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 nine months ended September 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 nine months ended September 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(4)
$133,970 $11,722 8 1,058 
Multi-service campuses25,276 1,916 1 168 
Assisted living39,319 3,495 4 241 
Total$198,565 $17,133 13 1,467 
(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.
(4) Includes one SNF held through a joint venture. See Note 11, Variable Interest Entities, for additional information. The SNF is currently leased under a short-term lease and a new long-term lease has been entered into with one of the Company’s existing operators and it is expected that this lease will become effective once regulatory approval is obtained. Initial annual cash rent does not consider a rent deferral of $420,000 in the first year upon commencement of the long-term lease to be repaid in 15 installments beginning in year 2.