Impairments of Real Estate

12 Months Ended

Dec. 31, 2025

Impairment Charges

During the year ended December 31, 2025, the Company did not recognize any impairment charges on its consolidated real estate assets. See Note 9 for discussion of the Company’s other-than-temporary impairment charges related to certain unconsolidated joint ventures.

During the year ended December 31, 2024, the Company recognized an impairment charge of $13 million, which is reported in impairments and loan loss reserves (recoveries), net on the Consolidated Statements of Operations, related to one outpatient medical building that met the held for sale criteria. Upon classifying the asset as held for sale, the Company recognized an impairment charge to write down the building’s carrying value of $21 million to its fair value, less estimated costs to sell, of $8 million.

The fair value of the impaired asset was based on the forecasted sales price which is considered to be a Level 3 measurement within the fair value hierarchy. The Company’s fair value estimates primarily relied on a market approach, which utilized comparable market transactions and negotiations with prospective buyers.

During the year ended December 31, 2023, the Company did not recognize any impairment charges.

Casualty-Related Charges

During the years ended December 31, 2025, 2024, and 2023, the Company recognized $1 million, $29 million, and $(3) million, respectively, of net casualty-related charges (recoveries), which are recorded in other income (expense), net, on the Consolidated Statements of Operations. During the year ended December 31, 2025, such charges were primarily related to mitigation and other charges incurred related to prior claims for Hurricane Milton, partially offset by recoveries. During the year ended December 31, 2024, such charges were primarily related to damages as a result of Hurricane Milton, partially offset by recoveries from proceeds received for water damage at an outpatient medical building during the year then ended. During the year ended December 31, 2023, such recoveries were primarily attributable to proceeds received for water damage at an outpatient medical building. Also during the years ended December 31, 2025, 2024, and 2023, the Company collected business interruption proceeds of $0.3 million, $0.7 million and $4 million, respectively, which are recognized in rental and related revenues and resident fees and services on the Consolidated Statements of Operations.

Other Losses

See Note 8 for information related to the Company’s reserve for loan losses.