CONCENTRATION OF CREDIT RISK

9 Months Ended

Sep. 30, 2024

NOTE 3—CONCENTRATION OF CREDIT RISK

We use total revenues and total NOI in assessing our concentration of credit risk. See “Non-GAAP Financial Measures” included elsewhere in this Quarterly Report on Form 10-Q for additional disclosure and a reconciliation of net income attributable to common stockholders, as computed in accordance with GAAP, to total NOI.

We are exposed to the credit risk of our tenants in our NNN and OM&R segments because those tenants are obligated to pay us rent and, in certain instances pay or reimburse us for some or all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures. Because we engage independent managers to manage the properties in our SHOP segment in exchange for a management fee, we are not directly exposed to their credit risk in the same manner or to the same extent as the tenants in our NNN and OM&R segments.

The following table summarizes certain information about our credit risk concentration for our NNN and OM&R segments for the three months ended September 30, 2024:


	For the Three Months Ended September 30,
	2024		2023
Revenues: (1)
Brookdale (2)	3.1	%	3.3	%
Ardent (3)	2.8		2.9
Kindred	2.8		2.9
All others	22.9		25.2
Net operating income (“NOI”):
Brookdale (2)	7.3	%	7.6	%
Ardent (3)	6.7		6.8
Kindred	6.8		6.8
All others	37.5		41.9

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(1)Represents percentage of total revenues which include third party capital management revenues, income from loans and investments and interest and other income.

(2)Results exclude 9 senior housing communities which are included in our SHOP segment.

(3)Results exclude 19 outpatient medical buildings included in “All others.”