VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2024

Noncontrolling Interest [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

Noncontrolling Interests—The Company has entered into 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.

The following table summarizes the Company’s investments in variable interest entities as of December 31, 2024 (dollars in thousands):

					Gross Investment
Investment Year		State	Facility Type	Number of Facilities	CTRE		Noncontrolling Interests		Total
2023		CA	SNF	1	$	25,459	$	653	$	26,112
2023		CA	SNF	2	34,269		879		35,148
2024		CA	ALF	1	10,760		276		11,036
2024		CA	Multi-service campuses	2	28,076		720		28,796
2024		CA	SNF	1	24,503		628		25,131
2024	(1)	TN, AL	SNF	27	422,646		18,389		441,035
2024	(2)	-	-	-	1,275		225		1,500
Total				34	$	546,988	$	21,770	$	568,758

(1) The noncontrolling interest is classified as a redeemable noncontrolling interest on the consolidated balance sheets.
(2) The Company entered into a joint venture to acquire real estate. The gross investment amounts represent a deposit.

Pursuant to the Company’s JVs, the Company typically contributes at least 90% of the joint venture’s total investment amount and receives 100% of the preferred equity interest in the joint venture and a 50% common equity interest in the joint venture. The Company’s joint venture partner contributes the remaining total investment amount in exchange for a 50% common ownership interest in the joint venture.

Total assets and total liabilities on the Company’s consolidated balance sheets include VIE assets and liabilities as follows (in thousands):

	December 31, 2024		December 31, 2023
Assets:
Real estate investments, net	$	565,959	$	68,106
Cash and cash equivalents	6,506		—
Prepaid and other assets	8,317		2,800
Total assets	580,782		70,906
Liabilities:
Accounts payable, accrued liabilities and deferred rent liabilities	10,332		7,239
Total liabilities	$	10,332	$	7,239