VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2025

VIEs for Which the Company is the Primary Beneficiary

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 contributions to joint ventures that are consolidated variable interest entities through September 30, 2025 (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 / 2025	(1)	TN, AL	SNF	28	442,327		19,156		461,483
2024 / 2025		CA	SNF Campus	1	33,810		867		34,677
2025	(1)	WA, OR, ID	SNF	10	140,610		5,478		146,088
2025		CA	SNF Campus	1	8,893		228		9,121
Total				47	$	748,707	$	28,885	$	777,592

(1) The noncontrolling interest is classified as a redeemable noncontrolling interest on the condensed consolidated balance sheets.

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

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


	September 30, 2025		December 31, 2024
Assets:






Real estate investments, net	$	758,831	$	565,959
Cash and cash equivalents	9,630		6,506
Accounts and other receivables	26		—
Prepaid and other assets	5,859		8,317
Total assets	774,346		580,782
Liabilities:
Accounts payable, accrued liabilities and deferred rent liabilities	3,289		10,332
Total liabilities	$	3,289	$	10,332

VIE for Which the Company is not the Primary Beneficiary

The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not exercise power over and/or does not have potentially significant economic exposure from the VIE. The Company’s investment in the unconsolidated VIE is carried in other real estate related investments on the condensed consolidated balance sheets and includes one mortgage secured loan issued by the VIE.

The fair value of the Company’s investment in the unconsolidated VIE at September 30, 2025 was £15.5 million. The Company’s maximum exposure to loss from the unconsolidated VIE was £15.5 million at September 30, 2025.