VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2025

The following table summarizes the Company’s investments in variable interest entities as of December 31, 2025 (dollars in thousands):


					Gross Investment
Investment Year		State	Property Type	Number of Properties	CTRE		Noncontrolling Interests		Total
2023		CA	Skilled nursing	1	$	25,459	$	653	$	26,112
2023		CA	Skilled nursing	2	34,269		879		35,148
2024		CA	Senior housing	1	10,760		276		11,036
2024		CA	Senior housing	2	28,076		720		28,796
2024		CA	Skilled nursing	1	24,503		628		25,131
2024 / 2025	(1)	TN, AL	Skilled nursing	28	442,327		19,156		461,483
2024 / 2025		CA	Skilled nursing	1	33,810		867		34,677
2025	(1)	WA, OR, ID	Skilled nursing	10	140,610		5478		146,088
2025		CA	Skilled nursing	1	8,893		228		9,121
2025		CA	Skilled nursing	1	28,496		731		29,227
2025	(2)	TX	Senior housing	3	40,998		860		41,858
Total				51	$	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.

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 equivalents	12,806		6,506
Accounts and other receivables, net	78		—
Prepaid and other assets	5,961		8,317
Total assets	841,302		580,782

Liabilities:
Accounts payable, accrued liabilities and deferred rent liabilities	4,856		10,332
Total liabilities	$	4,856	$	10,332

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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