DISPOSITIONS AND IMPAIRMENTS

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND IMPAIRMENTS

NOTE 5—DISPOSITIONS, ASSETS HELD FOR SALE AND IMPAIRMENTS

Dispositions

During the nine months ended September 30, 2025, we sold one senior housing community in our SHOP segment, four properties in our OM&R segment and 10 properties in our NNN segment for aggregate consideration of $168.8 million and recognized a $14.4 million gain on real estate disposition.

In June 2025, an existing tenant exercised a legally binding and non-cancellable option to purchase 12 OM&R properties in June 2026. This transaction is accounted for as a lease modification resulting in a sales-type lease receivable of $38.5 million and a $20.8 million gain on real estate disposition. Interest income from the sales-type lease receivable will be recognized over the remaining lease term.

Assets Held for Sale

The table below summarizes our real estate assets and liabilities classified as held for sale reported on our Consolidated Balance Sheets (dollars in thousands):

	As of September 30, 2025					As of December 31, 2024
	Segment Properties Held for Sale	Assets Held for Sale		Liabilities Related to Assets Held for Sale		Segment Properties Held for Sale	Assets Held for Sale		Liabilities Related to Assets Held for Sale
SHOP	4	$	44,936	$	2,996	2	$	18,612	$	2,158
OM&R	1	2,782		338		—	13		568
NNN	13	22,368		374		—	—		—
Total	18	$	70,086	$	3,708	2	$	18,625	$	2,726

Real Estate Impairments

For the three months ended September 30, 2025, we recognized impairments of $28.3 million comprising $0.7 million, $24.3 million and $3.2 million in our SHOP, OM&R and NNN segments, respectively. For the nine months ended September 30, 2025, we recognized impairments of $85.4 million comprising $26.7 million, $55.4 million and $3.3 million in our SHOP, OM&R and NNN segments, respectively. For the three months ended September 30, 2024, we recognized impairments of $17.3 million comprising $17.0 million and $0.3 million in our SHOP and OM&R segments, respectively. For the nine months ended September 30, 2024, we recognized impairments of $67.6 million comprising $41.7 million, $1.3 million and $24.6 million in our SHOP, OM&R and NNN segments, respectively. The impairments are recorded primarily as a component of Depreciation and amortization in our Consolidated Statements of Income. The impairments recorded were primarily a result of a change in our intent to hold or a change in the expected future cash flows of the impaired assets.