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SUBSEQUENT EVENTS
 6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
The Company evaluates subsequent events in accordance with ASC 855, Subsequent Events. The Company evaluates subsequent events up until the date the condensed consolidated financial statements are issued.
Recent Acquisitions and Investments
On July 1, 2025, the Company purchased one multi-service campus for $9.1 million, inclusive of transaction costs, through a JV. The Company contributed $8.9 million to the JV. In exchange, the Company holds 100% of the preferred equity interests in the JV and 50% of the common equity interest in the JV. The JV partner contributed the remaining $0.2 million of the total investment in exchange for 50% of the common equity interest in the JV. In connection with the acquisition of the facility, subsidiaries of the JV entered into a new master lease with a skilled nursing and seniors housing operator. The master lease has an initial term of approximately 10 years, with two ten-year renewal options. Annual cash rent under the lease is $0.9 million, with fixed annual escalators.
On August 1, 2025, the Company funded approximately $12.2 million (exclusive of transaction costs) in connection with the assignment and termination of several lease agreements between the Company and affiliates of Covenant Care California, LLC and pertaining to certain of the Company's owned facilities located in the State of California. In connection with the transaction, the Company entered into new long-term leases (or in some instances, amended existing leases with current tenants of the Company) with replacement tenants to continue operating the facilities. As a result of the subject transaction, the Company expects to receive approximately $3.9 million in additional annual rent.
Asset Exchange
On July 31, 2025, the Company completed an asset swap pursuant to which it transferred ownership of 10 U.K. Care Homes to the counterparty in exchange for six U.K. Care Homes and $2.9 million in cash before selling costs. The 10 U.K. Care Homes were classified as held for sale as of June 30, 2025. The annual rent did not significantly change as a result of the asset swap.
Mortgage Loan Origination
On July 1, 2025, the Company advanced the second installment of a mortgage loan of $5.0 million to a skilled nursing real estate owner. The loan bears interest at a rate of 8.5%, payable monthly. The mortgage loan is set to mature on May 31, 2035 and includes a one year extension option. The mortgage loan may be prepaid in whole, after June 1, 2026, for an exit fee ranging from 0% to 2% of the loan plus unpaid interest payments.
Financing Activity
On July 8, 2025, the Company paid off the entire outstanding balance of the secured notes payable. On July 31, 2025, the Company paid off and terminated the secured revolving credit facilities. In connection with the payoff of the secured revolving credit facilities, the Company settled the outstanding interest rate caps. See Note 7, Fair Value Measurements, and Note 8, Debt, for additional information. The Company did not record a material gain or loss in connection with the debt extinguishment. The Company funded the payoffs with cash on hand and $65.0 million in net borrowings under the Third Amended Revolving Facility.
On July 10, 2025, the Company entered into two interest rate swaps, with a notional amount of $250.0 million each, to hedge the variable cash flows associated with the Term Loan Facility. The interest rate swaps convert the Term Loan Facility’s Term SOFR rate to an effective fixed interest rate of 3.5%. The Company’s objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the term of the agreements without exchange of the underlying notional amount.