Loans Receivable

12 Months Ended

Dec. 31, 2025

The following table summarizes the Company’s loans receivable (in thousands):


	December 31,
	2025		2024
Secured loans(1)	$	583,460	$	638,482

Mezzanine loans	47,690		50,314
Unamortized discounts and fees	(13,785)		(22,380)
Reserve for loan losses	(11,345)		(10,499)


Loans receivable, net	$	606,020	$	655,917

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(1)At December 31, 2025, the Company had $99 million of remaining commitments to fund additional principal on loans for outpatient medical and lab capital expenditure projects. At December 31, 2024, the Company had $85 million of remaining commitments to fund additional principal on loans for outpatient medical capital expenditure projects.

During the years ended December 31, 2025, 2024, and 2023, the Company recognized $56 million, $40 million, and $22 million, respectively, of interest income related to loans receivable in interest income and other on the Consolidated Statements of Operations.

The Merger

On March 1, 2024, upon the consummation of the Merger, the Company acquired nine secured loans with an aggregate outstanding principal balance of $89 million and 10 mezzanine loans with an aggregate outstanding principal balance of $36 million, for a total of $124 million. Typically, each secured loan is secured by a mortgage on a related outpatient medical building, each construction loan (included in secured loans above) is secured by a mortgage on the land and improvements as constructed, generally with guarantees from the borrowers, and each mezzanine loan is collateralized by an ownership interest in the respective borrower. As of the Closing Date, the secured loans had maturities ranging from June 2024 to July 2027 and stated fixed interest rates ranging from 7.00% to 10.00%. The mezzanine loans had maturities ranging from June 2024 to June 2027 and stated fixed interest rates ranging from 8.00% to 10.00%.

As of December 31, 2025, unamortized net discounts on the secured loans and mezzanine loans acquired were $0.5 million and $0.6 million, respectively. As of December 31, 2024, unamortized net discounts on the secured loans and mezzanine loans acquired were $1 million and $2 million, respectively. These discounts are recognized in interest income and other on the Consolidated Statements of Operations using the effective interest rate method over the remaining term of the loans.

Sunrise Senior Housing Portfolio Seller Financing

In conjunction with the sale of a portfolio of Senior Housing Operating Property (“SHOP”) facilities in January 2021, the Company provided the buyer with financing secured by the buyer’s equity ownership in each property. In February 2024, this secured loan was refinanced with the Company. In connection with the refinance, the Company received a partial principal repayment of $69 million and the maturity date was extended to August 2027. In May 2024, the Company received a partial principal repayment of $5 million in conjunction with the disposition of the underlying collateral. At December 31, 2024, this secured loan had an outstanding principal balance of $58 million. In August 2025, the Company received full repayment of the outstanding balance of this seller financing.

Other SHOP Seller Financing

In conjunction with another SHOP portfolio sale in January 2021, the Company provided the buyer with financing secured by the buyer’s equity ownership in each property. During the year ended December 31, 2023, the borrower made a partial principal repayment of $102 million. At December 31, 2024, this secured loan had an outstanding principal balance of $48 million. This secured loan matured in January 2025, at which time the Company received full repayment of the outstanding balance of this seller financing.

Outpatient Medical Seller Financing

In conjunction with the sale of 59 outpatient medical buildings for $674 million in July 2024 and the two outpatient medical buildings for $23 million in November 2024 (see Note 5), the Company provided the buyer with a mortgage loan secured by the real estate sold for $405 million and $14 million, respectively. The remainder of the sales price was received in cash at the time of sales. The seller financing has an initial term that matures in July 2026 and includes two 12-month extension options. The interest rate on the seller financing is fixed at 6.0% for the initial term and increases to 6.5% during the optional extension periods. The Company also received a $1 million loan origination fee in connection with the loan, which is being recognized in interest income over the remaining term of the loan. In connection with this seller financing, the Company reduced the gain on sales of real estate and recognized a mark-to-market discount of $21 million during the year ended December 31, 2024. This discount is based on the difference between the stated interest rate and the corresponding prevailing market rate as of the transaction date. The discount is recognized as interest income over the term of the discounted loan using the effective interest rate method. During the year ended December 31, 2025 and 2024, the Company recognized $6 million and $3 million, respectively, of non-cash interest income related to the amortization of this mark-to-market discount. As of December 31, 2025 and 2024, the unamortized mark-to-market discount was $12 million and $18 million, respectively.

Loans Receivable Activity

The following is a summary of the Company’s loans receivable activity for the periods presented (in thousands):


	Secured Loans		Mezzanine Loans
Loans receivable as of December 31, 2022	$	350,837	$	—
Add: Advances on and acquisitions of loans receivable	10,925		—
Less: Receipts on loans receivable and other reductions	(183,084)		—
Loans receivable as of December 31, 2023	178,678		—
Add: Advances on and acquisitions of loans receivable(1)	537,520		52,667
Less: Receipts on loans receivable and other reductions	(77,716)		(2,353)
Loans receivable as of December 31, 2024	638,482		50,314
Add: Advances on and acquisitions of loans receivable	87,648		4,756
Less: Receipts on loans receivable and other reductions	(142,670)		(7,380)
Loans receivable as of December 31, 2025	$	583,460	$	47,690

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(1)Includes loans acquired as part of the Merger and the Outpatient Medical Seller Financing discussed above.

In January 2026, the Company entered into and funded a $10 million loan secured by a land parcel and received full repayment of the outstanding balance of one $5 million mezzanine loan.

Loans Receivable Internal Ratings

Refer to Note 2 for a discussion of the Company’s quarterly review process over its loans receivable and the related internal ratings process. The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and reserves for loan losses, as of December 31, 2025 (in thousands):


Investment Type	Year of Origination(1)												Total
	2025		2024		2023		2022		2021		Prior
Secured loans
Risk rating:
Performing loans	$	44,052	$	450,352	$	39,771	$	31,545	$	—	$	—	$	565,720
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total secured loans	$	44,052	$	450,352	$	39,771	$	31,545	$	—	$	—	$	565,720
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Mezzanine loans
Risk rating:
Performing loans	$	4,217	$	12,890	$	—	$	3,194	$	7,782	$	12,217	$	40,300
Watch list loans	—		—		—		—		—		—		—
Workout loans	—		—		—		—		—		—		—
Total mezzanine loans	$	4,217	$	12,890	$	—	$	3,194	$	7,782	$	12,217	$	40,300
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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(1)Additional fundings under existing loans are included in the year of origination of the initial loan.

Reserve for Loan Losses

Refer to Note 2 for a discussion of the Company’s assessment of current expected credit losses for loans receivable and unfunded loan commitments. The following table summarizes the Company’s reserve for loan losses (in thousands):


	December 31,
	2025						2024						2023
	Secured Loans		Mezzanine Loans		Total		Secured Loans		Mezzanine Loans		Total		Secured Loans		Mezzanine Loans		Total
Reserve for loan losses, beginning of period	$	5,574	$	4,925	$	10,499	$	2,830	$	—	$	2,830	$	8,280	$	—	$	8,280


Provision for expected loan losses on funded loans receivable	908		2,215		3,123		2,744		4,925		7,669		2,088		—		2,088
Expected loan losses (recoveries) related to loans sold or repaid	(1,732)		(545)		(2,277)		—		—		—		(7,538)		—		(7,538)


Reserve for loan losses, end of period	$	4,750	$	6,595	$	11,345	$	5,574	$	4,925	$	10,499	$	2,830	$	—	$	2,830

Additionally, at December 31, 2025 and 2024, a liability of $1.1 million and $2.9 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.

The change in the reserve for expected loan losses during the year ended December 31, 2025 is primarily due to reserves recognized on new and amended loans during the year then ended, partially offset by recoveries related to loans repaid during the same period.