CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 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 Annual Report 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.

Our consolidated properties were located in 48 states, the District of Columbia, seven Canadian provinces and the United Kingdom as of December 31, 2025, with properties in one state (California) accounting for more than 10% of our total revenues and NOI for each of the years ended December 31, 2025, 2024 and 2023.

The following table summarizes certain information about our credit risk concentration for our NNN and OM&R segments:

	For the Years Ended December 31,
	2025		2024		2023
Contribution as a Percentage of Total Revenues:
Brookdale (1)	2.6	%	3.1	%	3.3	%
Ardent	2.6		3.1		3.3
Kindred	2.4		2.8		2.9
Contribution as a Percentage of Total NOI:
Brookdale (1)	6.2	%	7.2	%	7.7	%
Ardent	6.4		7.3		7.6
Kindred	5.8		6.7		6.9

______________________________

(1)For all periods presented, includes 121 senior housing properties in our NNN segment leased to Brookdale, including 56 properties for which the lease expired on or before December 31, 2025 (the “Brookdale Conversion and Sale Communities”). In connection therewith, (i) 42 of the Brookdale Conversion and Sale Communities were converted to our SHOP segment during 2025, with the revenues and NOI for those properties included in the above table through the date of conversion, (ii) 3 of the Brookdale Conversion and Sale Communities were converted to our SHOP segment on January 1, 2026, (iii) 2 of the Brookdale Conversion and Sale Communities were sold during 2025, with the revenues and NOI for those properties included in the above table through the date of sale and (iv) 9 of the Brookdale Conversion and Sale Communities were held for sale as of December 31, 2025. As a result of foregoing, Brookdale is not expected to constitute a significant percentage of our total revenues or total NOI in 2026 and thereafter.

All of our Brookdale and Kindred rent and substantially all of our Ardent rent are guaranteed by their respective corporate parents.

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. Substantially all of the resident fees and services earned from our SHOP segment represent fixed income from operating leases and have not been included in the table below.

The following table summarizes rental income from our NNN and OM&R operating leases (dollars in thousands):

	For the Years Ended December 31,
	2025		2024		2023
Fixed income from operating leases	$	1,239,098	$	1,251,042	$	1,241,075
Variable income from operating leases	257,569		245,898		245,326

Future Contractual Rents    

The following table sets forth the minimum lease payments under the existing lease for all of our consolidated triple-net and outpatient medical and research building leases as of December 31, 2025 (excluding properties classified as held for sale as of December 31, 2025, dollars in thousands):

	Ardent		Kindred		Other		Total
2026	$	155,868	$	134,460	$	812,119	$	1,102,447
2027	154,720		134,460		744,314		1,033,494
2028	154,720		116,245		642,566		913,531
2029	154,720		107,137		554,340		816,197
2030	154,720		47,962		474,358		677,040
Thereafter	704,638		68,902		1,750,382		2,523,922
Total	$	1,479,386	$	609,166	$	4,978,079	$	7,066,631