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VARIABLE INTEREST ENTITIES
 12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES
VIEs for Which the Company is the Primary Beneficiary
Noncontrolling Interests—The Company has entered into ventures with unrelated third parties to own and operate 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, 2025 (dollars in thousands):
Gross Investment
Investment YearStateProperty TypeNumber of PropertiesCTRENoncontrolling InterestsTotal
2023CASkilled nursing1$25,459 $653 $26,112 
2023CASkilled nursing234,269 879 35,148 
2024CASenior housing110,760 276 11,036 
2024CASenior housing228,076 720 28,796 
2024CASkilled nursing124,503 628 25,131 
2024 / 2025
(1)
TN, ALSkilled nursing28442,327 19,156 461,483 
2024 / 2025CASkilled nursing133,810 86734,677 
2025
(1)
WA, OR, IDSkilled nursing10140,610 5478146,088 
2025CASkilled nursing18,893 2289,121 
2025CASkilled nursing128,496 73129,227 
2025
(2)
TXSenior housing340,998 860 41,858 
Total51$818,201 $30,476 $848,677 
(1) The noncontrolling interest is classified as a redeemable noncontrolling interest on the consolidated balance sheets.
(2) This investment transaction includes multiple joint venture agreements.
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, when applicable, 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. Not all joint venture transactions include a preferred equity component.
Total assets and total liabilities on the Company’s consolidated balance sheets include VIE assets and liabilities as follows (in thousands):
December 31, 2025
December 31, 2024
Assets:
Real estate investments, net$822,457 $565,959 
Cash and cash equivalents12,806 6,506 
Accounts and other receivables, net78 — 
Prepaid and other assets5,961 8,317 
Total assets841,302 580,782 
Liabilities:
Accounts payable, accrued liabilities and deferred rent liabilities4,856 10,332 
Total liabilities$4,856 $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 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 December 31, 2025 was £15.5 million. The Company’s maximum exposure to loss from the unconsolidated VIE was £15.5 million at December 31, 2025.