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OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS
 9 Months Ended
Sep. 30, 2025
Investments, All Other Investments [Abstract]  
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS
As of September 30, 2025 and December 31, 2024, the Company’s other real estate related investments, inclusive of accrued interest, consisted of the following (dollars in thousands):
Facility Count and Type
As of September 30, 2025
Loans Receivable, at Fair Value:SNFCampusALFILF
Principal Balance as of September 30, 2025
Fair Value as of September 30, 2025(1)
Principal Balance as of December 31, 2024
Fair Value as of December 31, 2024(1)
Weighted Average Contractual Interest Rate(2), (3)
Maturity Date
Mortgage secured loans receivable(4)
604182$669,164 $677,562 $658,400 $660,392 8.8 %12/12/2025 - 9/30/2039
Mezzanine loans receivable(4)
4142— 88,676 87,889 82,287 80,612 12.8 %7/25/2027 - 12/31/2034
Total$757,840 $765,451 $740,687 $741,004 
Facility Count and Type
As of September 30, 2025
Loan Receivable, at Amortized Cost:U.K. Care Home
Principal Balance as of September 30, 2025
Book Value as of September 30, 2025(5)
Principal Balance as of December 31, 2024
Book Value as of December 31, 2024
Weighted Average Effective Interest RateMaturity Date
Mortgage secured loan receivable1$20,839 $21,350 $— $— 6.1 %9/21/2026
$20,839 $21,350 $— $— 
As of September 30, 2025
Principal Balance as of September 30, 2025
Book Value as of September 30, 2025
Principal Balance as of December 31, 2024
Book Value as of December 31, 2024
Weighted Average Contractual Interest RateMaturity Date
Preferred equity$83,782 $84,494 $53,782 $54,199 11.5 %N/A
Total$83,782 $84,494 $53,782 $54,199 
Facility Count and Type
As of September 30, 2025
Financing Receivable, at Fair Value:SNFCampusALFILF
Principal Balance as of September 30, 2025
Fair Value as of September 30, 2025(6)
Principal Balance as of December 31, 2024
Fair Value as of December 31, 2024(6)
Weighted Average Effective Interest Rate(7)
Maturity Date
Financing Receivable39— 52$95,723 $98,054 $95,723 $96,004 12.0 %11/30/2039
Total$95,723 $98,054 $95,723 $96,004 
(1)Fair value of mortgage secured loans receivable includes $3.4 million of accrued interest as of both September 30, 2025 and December 31, 2024. Fair value of mezzanine loans receivable includes $0.9 million of accrued interest as of both September 30, 2025 and December 31, 2024.
(2)Rates are net of subservicing fee, if applicable.
(3)Two mortgage secured loans receivable and two mezzanine loans receivable use term secured overnight financing rate (“SOFR”), which are subject to a floor for certain of the loans. Term SOFR used as of September 30, 2025 was 4.13%.
(4)If the Company also has extended mezzanine financing to an affiliate of the borrower under a mortgage loan receivable, the applicable facility counts are included in both respective totals.
(5)Book value of loan receivable, at amortized cost, includes $0.5 million of loan costs as of September 30, 2025.
(6)Fair value of financing receivable includes $2.3 million and $0.3 million of accrued interest as of September 30, 2025 and December 31, 2024, respectively.
(7)The Company leased these facilities back to the seller under a 15-year contract, with two five-year renewal options. The agreement provides for an initial contractual cash yield of 11.0% for the first three years, with annual CPI-based escalators beginning in year four, subject to a 3% cap. The agreement provides for deferred payments equal to 2.0% of the contractual cash yield in the first year and 0.5% of the contractual cash yield in the second year. The agreement also provides for purchase options. At the time the seller-lessee exercises its purchase options, option proceeds will be used to repay any outstanding deferred payments as well as additional payments such that the Company receives a contractual cash yield of 12.5% on its gross investment in the applicable properties through the option exercise date. If any deferred amounts remain unpaid, beginning in year eight, the deferred amounts are to be repaid in 24 equal monthly payments. The Company has not received notice of exercise for the purchase option period currently open.
The following table summarizes the Company’s other real estate related investments activity for the nine months ended September 30, 2025 and 2024 (dollars in thousands):
Nine Months Ended September 30,
2025
2024
Origination of other real estate related investments$78,164 $556,951 
Accrued interest, net372 4,099 
Unrealized gain (loss) on other real estate related investments, net6,858 (689)
Payments of other real estate related investments(9,302)— 
Net change in other real estate related investments$76,092 $560,361 
2025 Other Real Estate Related Investment Transactions
On January 10, 2025, the Company advanced the second installment of a mezzanine loan for one SNF secured by a pledge of membership interests in an up-tier holding company of the borrower group for $6.4 million. The loan bears interest at a rate of 13%, with annual CPI-based escalators. The mezzanine loan is set to mature on December 31, 2034. The mezzanine loan may not be prepaid in whole or in part prior to maturity. The Company elected the fair value option for the mezzanine loan.
In February 2025, the Company received a partial prepayment on one mortgage loan in the amount of $4.4 million in connection with the borrower’s election to release one skilled nursing facility from the loan. In April 2025, the remaining outstanding balance of $2.9 million was paid off.
In April 2025, one mortgage loan with a principal balance of $2.0 million was paid off.
In April 2025, the Company funded a $9.0 million earnout on an existing $165.0 million mortgage loan.
On June 1, 2025 and July 1, 2025, the Company extended a mortgage loan through installments of $6.1 million and $5.0 million, respectively, to a skilled nursing real estate owner. The mortgage loan is secured by one SNF and 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 the 12th month following the loan closing, for an exit fee ranging from 0% to 2% of the loan plus unpaid interest payments. The Company elected the fair value option for the mortgage loan.
On September 22, 2025, the Company extended a mortgage loan of £15.5 million, to an existing operator. The mortgage loan is secured by one U.K. Care Home and bears interest at a rate of 8.5%. The mortgage loan is set to mature on September 21, 2026, and includes a put and call option, subject to certain conditions, to purchase the real estate. Upon receipt by the existing operator of certain regulatory approvals, the Company intends to exercise its option to accelerate the mortgage loan, acquire the underlying real estate securing the mortgage loan, and enter into a new long-term lease with the existing operator. This mortgage loan is reflected at amortized cost on the condensed consolidated balance sheets. The amortized cost of a loan receivable is the outstanding unpaid principal balance, net of unamortized costs and fees directly associated with the origination of the loan. Direct loan origination costs are amortized over the term of the loan as an adjustment to interest income.
2024 Other Real Estate Related Investment Transactions
On January 1, 2024, the Company closed on the sale of one ALF. In connection with the sale, the Company provided affiliates of the purchaser of the property with a $1.0 million mortgage loan which bears interest at a rate of 9.0%. The mortgage loan is secured by the ALF and is set to mature on January 1, 2027. The mortgage loan may be prepaid in whole before the maturity date. The Company elected the fair value option for the mortgage loan.
On January 25, 2024, the Company extended a $9.8 million mezzanine loan for a portfolio of ten SNFs located in Missouri secured by a pledge of membership interests in an up-tier holding company of the borrower group. The Company participated in the loan alongside a co-lender pursuant to a participation agreement entered into between the Company and the co-lender. Pursuant to such agreement, the Company provided $9.8 million in mezzanine loan proceeds and the co-lender provided the remaining $10.2 million of loan proceeds. As a participant in the loan, and subject to limited exceptions, the Company is entitled to receive its proportionate share of loan payments made by the borrower with each co-lender’s proportionate share being given equal weight. The loan bears interest at term SOFR plus 8.75%, with a term SOFR floor of 6%, payable monthly and net of a 0.75% subservicing fee. Commencing on February 1, 2026, monthly principal payments shall be due. The mezzanine loan is set to mature on July 25, 2027, with two six-month extension options and may (subject to certain restrictions) be prepaid in whole before the maturity date for an exit fee ranging from 1% to 2% of the loan plus unpaid interest payments equal to 24 months (less the amount of monthly interest payments made by the borrower through the date of prepayment). The Company elected the fair value option for the mezzanine loan.
On February 1, 2024, the Company extended a $7.4 million mezzanine loan for one SNF located in California secured by a pledge of membership interests in an up-tier holding company of the borrower group. The loan bears interest at 11.5%, payable monthly. The mezzanine loan is set to mature on January 31, 2029, and may not (subject to certain limited exceptions) be prepaid prior to the date that is 18 months following the loan closing. The Company elected the fair value option for the mezzanine loan.
On February 2, 2024, the Company extended a $35.0 million mezzanine loan for a portfolio of 15 SNFs located in Virginia secured by a pledge of membership interests in an up-tier holding company of the borrower group. The Company participated in the loan alongside a co-lender pursuant to a participation agreement entered into between the Company and the co-lender. Pursuant to such agreement, the Company provided $35.0 million in mezzanine loan proceeds and the co-lender provided the remaining $50.0 million of loan proceeds. As a participant in the loan, and subject to limited exceptions, the Company is entitled to receive its proportionate share of loan payments made by the borrower with each co-lender’s proportionate share being given equal weight. The loan bears interest at term SOFR plus 8.75%, with a term SOFR floor of 6%, payable monthly and net of a 0.75% subservicing fee. Commencing on February 2, 2026, monthly principal payments shall be due. The mezzanine loan is set to mature on August 1, 2027, with two six-month extension options and may (subject to certain restrictions) be prepaid in whole before the maturity date for an exit fee ranging from 1% to 2% of the loan plus unpaid interest payments equal to 18 months (less the amount of monthly interest payments made by the borrower through the date of prepayment). The Company elected the fair value option for the mezzanine loan.
On May 1, 2024, the Company extended a $26.7 million mortgage loan to a skilled nursing real estate owner. The mortgage loan is secured by two SNFs and bears interest at a rate of 9.1%, payable monthly. The mortgage loan is set to mature on May 1, 2031 and includes a one year extension option. The mortgage loan may not be prepaid prior to July 31, 2029, subject to certain limited exceptions. The mortgage loan includes a purchase option with an exercise window that opens during the initial 90-day period of each of the 4th, 5th and 6th loan years, with the purchase option price for the facilities being calculated by dividing the amount of the then annual base rent by an agreed upon lease yield. The Company elected the fair value option for the mortgage loan.
On June 3, 2024, the Company extended a $165.0 million mortgage loan to a regional health care real estate owner. The mortgage loan is secured by eight SNFs located in North Carolina and bears interest at a rate of SOFR plus 4.25%, with a term SOFR floor of 5.15%, payable monthly and net of a 0.25% subservicing fee. Commencing on June 1, 2027, monthly principal payments will be due. The mortgage loan is set to mature on June 1, 2029, and includes two six-month extension options. The mortgage loan may not be prepaid prior to June 1, 2026, subject to certain limited exceptions. The Company elected the fair value option for the mortgage loan. Concurrently with closing, KeyBank National Association purchased a $75.0 million participation in the mortgage loan from the Company. On July 30, 2024, the Company exercised the call option on the $75.0 million secured borrowing at a call purchase price equal to the principal amount plus accrued and unpaid interest and an exit fee of $0.4 million.
On August 1, 2024, the Company extended a $260.0 million mortgage loan to a skilled nursing real estate owner. The loan is secured by a first priority mortgage lien on a real estate portfolio of 37 SNFs, ALFs and multi-service campuses located in various states and bears interest at a fixed rate of 8.4%, payable monthly. The mortgage loan is set to mature on August 1, 2029 and has a 24-month lockout period on prepayment subject to certain exceptions. The mortgage loan may otherwise be prepaid in part or in whole after the 24-month lockout period with agreed upon exit fees, as applicable.
Preferred Equity Investments
On June 5, 2025, the Company funded a $30.0 million preferred equity investment in a skilled nursing real estate owner. The Company’s initial contractual yield on its preferred equity investment is 12%. Prepayment of the preferred equity investment is restricted, subject to certain conditions.
On August 1, 2024, the Company funded a $43.0 million preferred equity investment in an uptier holding company of the borrower under an existing $260.0 million mortgage loan. The Company's initial contractual yield on its preferred equity investment is 11%.
On June 3, 2024, the Company funded a $9.0 million preferred equity investment in an uptier parent entity of the borrower under an existing $165.0 million mortgage loan. The Company's initial contractual yield on its preferred equity investment is 11%. Prepayment of the preferred equity investment is restricted, subject to certain carveouts, prior to the senior mortgage loan being paid off in full.
Financing Receivable
On December 5, 2024, the Company invested $95.7 million, exclusive of transaction costs, to acquire a portfolio of 46 properties in Illinois in a sale and leaseback transaction with a skilled nursing operator. In connection with the transaction, the Company entered into a new triple-net master lease with the skilled nursing operator and provided the operator with options to repurchase the properties, structured over multiple tranches, with various option window start dates, beginning December 1, 2024, and open through the remainder of the 15-year term. As such, the Company determined that the sale and leaseback transaction met the accounting criteria to be presented as a financing receivable on its condensed consolidated balance sheets and recorded interest income from financing receivable on its condensed consolidated income statements. Interest income is based on an imputed interest rate over the term of the applicable financing arrangement and as a result the interest recognized in any particular period will not equal the cash payments from the agreement in that period. Cash received from the financing receivable was $2.2 million and $6.6 million during the three and nine months ended September 30, 2025, respectively. The Company elected the fair value option for the financing receivable.
Other Loans Receivables
As of September 30, 2025 and December 31, 2024, the Company’s other loans receivable, included in prepaid expenses and other assets, net on the Company’s condensed consolidated balance sheets, consisted of the following (dollars in thousands):
As of September 30, 2025
Investment
Principal Balance as of September 30, 2025
Book Value as of September 30, 2025
Book Value as of December 31, 2024
Weighted Average Contractual Interest RateMaturity Date
Other loans receivable$28,291 $28,811 $22,010 8.5 %6/1/2026 - 12/31/2030
Expected credit loss— (6,994)(6,994)
Total$28,291 $21,817 $15,016 
The following table summarizes the Company’s other loans receivable activity for the nine months ended September 30, 2025 and 2024 (dollars in thousands):
Nine Months Ended September 30,
2025
2024
Origination of other loans receivable$226 $985 
Assumption of other loans receivable in connection with the Acquisition(1)
6,974 — 
Principal payments(889)(100)
Accrued interest, net490 5 
Net change in other loans receivable$6,801 $890 
(1) In connection with the Acquisition, the Company assumed other loans receivable, including one for $6.7 million related to the development of a U.K. Care Home. Upon certain conditions being met, a put option by the operator or a call option by the Company may each be exercised providing for the Company’s acquisition of the development for an additional $5.0 million. If these options are not exercised the loan becomes repayable in June 2026.
Expected credit losses and recoveries are recorded in provision for loan losses, net in the condensed consolidated income statements. During both the nine months ended September 30, 2025 and 2024, the Company had no additional expected credit loss and did not consider any loans receivable investment to be impaired.
The following table summarizes the interest and other income recognized from the Company’s loans receivable and other investments during the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
Investment2025202420252024
Mortgage secured loans receivable$15,009 $12,054 $43,909 $21,370 
Mezzanine loans receivable2,904 2,522 8,598 6,911 
Preferred equity investment2,403 1,110 5,811 1,322 
Other loans receivable790 354 1,529 1,023 
Financing receivable2,908 — 8,601 — 
Other(1)
4,165 4,188 11,142 12,654 
Total$28,179 $20,228 $79,590 $43,280 
(1) Other income is comprised of interest income on money market funds and escrow deposits.