VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2024

Noncontrolling Interests—The Company has entered into multiple ventures with unrelated third parties to own real estate and has concluded that such ventures are VIEs. As the Company exercises power over and receives economic benefits from the VIEs, the Company is considered the primary beneficiary and consolidates the VIEs. Pursuant to the Company’s joint ventures (“JVs”), the Company typically contributes 97.5% of the JV’s total investment amount and the Company receives 100% of the preferred equity interest in the JV in exchange for 95% of that total investment and a 50% common equity interest in the JV in exchange for the remaining 2.5% of that investment. The JV partner contributes the remaining 2.5% of the JV’s total investment amount in exchange for a 50% common ownership interest in the JV. As of June 30, 2024, the Company held three SNFs, two multi-service campuses and one ALF in multiple VIEs.

On January 3, 2024, the Company entered into a JV, pursuant to which the Company contributed $10.8 million into the JV that purchased one ALF located in California for $11.0 million. The JV partner contributed the remaining $0.2 million of the total investment.

On April 1, 2024, the Company entered into a JV, pursuant to which the Company contributed $28.1 million into the JV that purchased two multi-service campuses located in California for $28.8 million. The JV partner contributed the remaining $0.7 million of the total investment.

Total assets and total liabilities include VIE assets and liabilities as follows (dollars in thousands):


	June 30, 2024		December 31, 2023
Assets:






Real estate investments, net	$	106,439	$	68,106
Cash and cash equivalents	1,013		—
Accounts and other receivables	246		—
Prepaid and other assets	—		2,800
Total assets	107,698		70,906
Liabilities:
Accounts payable, accrued liabilities and deferred rent liabilities	6,775		7,239
Total liabilities	$	6,775	$	7,239