CONCENTRATION OF RISK

3 Months Ended

Mar. 31, 2024

Concentrations of credit risk arise when one or more tenants, operators, or obligors related to the Company’s investments are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions.

Major operator concentration - The Company has operators from which it derived 10% or more of its revenue for the three months ended March 31, 2024 and 2023. The following table sets forth information regarding the Company’s major operators as of March 31, 2024 and 2023:


	Number of Facilities			Number of Beds/Units			Percentage of Total Revenue
Operator	SNF	Campus	ALF/ILF	SNF	Campus	ALF/ILF	Three Months Ended
March 31, 2024(1)
Ensign(3)	85	8	7	9,024	997	661	30	%
Priority Management Group	13	2	—	1,742	402	—	13	%

March 31, 2023(2)
Ensign(3)	83	8	7	8,741	997	661	36	%
Priority Management Group	13	2	—	1,742	402	—	17	%

(1) The Company’s rental income and interest income on other real estate related investments, exclusive of operating expense reimbursements and adjustments for collectibility.

(2) The Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility.

(3) Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at http://www.sec.gov. The Company has not verified this information through an independent investigation or otherwise.

Major geographic concentration – The following table provides information regarding the Company’s concentrations with respect to certain states, from which the Company derived 10% or more of its revenue for the three months ended March 31, 2024 and 2023:


	Number of Facilities			Number of Beds/Units			Percentage of Total Revenue
State	SNF	Campus	ALF/ILF	SNF	Campus	ALF/ILF	Three Months Ended
March 31, 2024(1)
CA	42	9	9	5,000	1,527	723	31	%
TX	41	4	2	5,193	630	212	20	%

March 31, 2023(2)
CA	27	8	5	3,048	1,359	437	28	%
TX	38	3	3	4,849	536	242	23	%

(1) Based on the Company’s rental income and interest income on other real estate related investments, exclusive of operating expense reimbursements and adjustments for collectibility.

(2) Based on the Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility.