CONCENTRATION OF CREDIT RISK

6 Months Ended

Jun. 30, 2025

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK

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 utilities, real estate taxes, insurance, repairs and maintenance, cleaning, roads and grounds expense and other expenses. 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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Contribution as a Percentage of Total Revenues:
Brookdale (1)(2)	2.8	%	3.1	%	2.9	%	3.1	%
Ardent (3)	2.7		3.1		2.8		3.1
Kindred	2.5		2.8		2.6		2.8
Contribution as a Percentage of Total NOI:
Brookdale (1)(2)	6.8	%	7.2	%	6.9	%	7.3	%
Ardent (3)	6.5		7.3		6.6		7.3
Kindred	5.9		6.6		6.1		6.6

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(1)Excludes nine and 10 senior housing communities which are included in our SHOP segment as of June 30, 2025 and 2024, respectively.

(2)For the three months ended June 30, 2025 and 2024, includes $6.6 million and $10.7 million, respectively, of amortization of up-front consideration received in 2020 from a revised master lease agreement with Brookdale. For the six months ended June 30, 2025 and 2024, includes $13.2 million and $21.3 million, respectively, of amortization of up-front consideration received in 2020 from a revised master lease agreement with Brookdale.

(3)Includes 11 properties in our NNN segment and 19 outpatient medical buildings leased in whole or in part to Ardent.

All of our Brookdale and Kindred rent and substantially all of our Ardent rent is guaranteed by a corporate parent.

Lease Income

Rental income from our NNN and OM&R operating leases consists of fixed and variable lease payments. The variable payments primarily represent (i) amounts that certain tenants pay to reimburse us for property-level operating expenses that we pay on their behalf and (ii) percentage rent, which is a rental charge typically based on certain tenants' gross revenue. The following table summarizes rental income from our NNN and OM&R operating leases (dollars in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Fixed income from operating leases	$	309,828	$	317,696	$	625,937	$	635,549
Variable income from operating leases	63,688		55,091		125,011		111,483