Dispositions of Real Estate

6 Months Ended

Jun. 30, 2026

Discontinued Operations and Disposal Groups [Abstract]

2026 Dispositions of Real Estate

During the three months ended March 31, 2026, the Company sold (i) four lab buildings for $68 million, (ii) two outpatient medical buildings for $15 million, and (iii) nine suites within an outpatient medical building in Atlanta, Georgia for $7 million, resulting in total gain on sales of $51 million.

During the three months ended June 30, 2026, the Company sold (i) two outpatient medical buildings for $34 million and (ii) one senior housing community for $23 million, resulting in total gain on sales of $10 million.

Brookfield JV

In July 2026, the Company formed a JV with affiliates of Brookfield Asset Management (“Brookfield”). The Company contributed 86 outpatient medical buildings which are diversified across 11 states. Brookfield purchased a non-controlling 49% equity interest in the JV at a gross valuation of approximately $2.1 billion, generating proceeds of approximately $1.025 billion. Under the terms of the agreement, the Company will maintain day-to-day control and management of the assets and will retain a call right for a finite period beginning after year seven to repurchase Brookfield’s interest at a price sufficient to provide Brookfield with a 6.5% net annual rate of return excluding initial transaction expenses.

2025 Dispositions of Real Estate

During the three months ended June 30, 2025, the Company sold one outpatient medical land parcel for $4 million, resulting in gain on sale of $3 million.

During the year ended December 31, 2025, the Company also sold (i) nine outpatient medical buildings for $160 million and (ii) a portfolio of 16 outpatient medical buildings for $182 million, resulting in total gain on sales of $69 million.

Held for Sale

As of June 30, 2026, two lab buildings and one outpatient medical building were classified as held for sale, with a carrying value of $37 million, primarily comprised of net real estate assets. As of June 30, 2026, liabilities related to the assets held for sale were $1 million, primarily comprised of deferred revenue. As of December 31, 2025, six lab buildings and two outpatient medical buildings were classified as held for sale, with a carrying value of $81 million, primarily comprised of net real estate assets of $73 million and right-of-use assets of $7 million. As of December 31, 2025, liabilities related to the assets held for sale were $12 million, primarily comprised of lease liabilities of $9 million and deferred revenue of $3 million. Four of these lab buildings were sold during the three months ended March 31, 2026 and one of these outpatient medical buildings was sold during the three months ended June 30, 2026.

Impairments of Real Estate

During the three and six months ended June 30, 2026 and 2025, the Company did not recognize any impairment charges on its consolidated real estate assets.