Summarized Financial Information of Equity Affiliates (Tables)

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Limited Liability Companies Accounted for Under Equity Method

The following property table represents the four LLCs/LPs in which we owned a non-controlling interest and were accounted for under the equity method as of March 31, 2024:

Name of LLC/LP	Ownership			Property Owned by LLC/LP
Suburban Properties		33	%	St. Matthews Medical Plaza II
Brunswick Associates (a.)(b.)		74	%	Mid Coast Hospital MOB
FTX MOB Phase II (c.)		95	%	Forney Medical Plaza II
Grayson Properties II (d.)(e.)		95	%	Texoma Medical Plaza II

(a.)This LLC has a third-party term loan of $8.4 million, which is non-recourse to us, outstanding as of March 31, 2024.

(b.)We are the lessee with a third party on a ground lease for land.

(c.)During the first quarter of 2021, this LP paid off its $4.7 million mortgage loan upon maturity, utilizing pro rata equity contributions from the limited partners as well as a $3.5 million member loan from us to the LP which was funded utilizing borrowings from our revolving credit agreement. During the first quarter of 2023, the LP repaid $175,000 of the member loan and the remaining $3.3 million member loan balance was converted to an equity investment in the LP.

(d.)This LP constructed, owns and operates the Texoma Medical Plaza II, on which construction substantially completed in December 2020. The MOB is located in Denison, Texas, on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $10.2 million in equity and debt financing, $7.6 million of which has been funded as of March 31, 2024. This LP entered into a third-party construction loan commitment, which is non-recourse to us, which had an outstanding balance of $7.0 million as of March 31, 2024. Monthly principal and interest payments on this loan commenced on January 1, 2023. During the first quarter of 2024, $5.7 million of the third-party construction loan was repaid utilizing pro rata equity contributions from the partners. The third-party partner's share of the pro rata equity contributions was partially funded with a six-month, $128,000 partner loan from us. Our share of the pro rata equity contributions, as well as the third-party partner loan, were funded utilizing borrowings from our revolving credit agreement. As a result of the repayment of a portion of the construction loan, an associated $3.1 million letter of credit was terminated.

(e.)We are the lessee with a UHS-related party for the land related to this property.

Condensed Combined Statements of Income (Unaudited) for LLCs/LPs Accounted Under Equity Method

Below are the condensed combined statements of income (unaudited) for the four LLCs/LPs accounted for under the equity method at March 31, 2024 and 2023:

	Three Months Ended March 31,
	2024		2023
	(amounts in thousands)
Revenues	$	2,250	$	2,226
Operating expenses		898		905
Depreciation and amortization		474		455
Interest, net		159		241
Net income	$	719	$	625
Our share of net income	$	384	$	371

Condensed Combined Balance Sheets (Unaudited) for LLCs/LPs Accounted Under Equity Method

Below are the condensed combined balance sheets (unaudited) for the four above-mentioned LLCs/LPs that were accounted for under the equity method as of March 31, 2024 and December 31, 2023:

	March 31, 2024			December 31, 2023
	(amounts in thousands)
Net property, including construction in progress	$	28,096		$	28,488
Other assets (a.)		4,556			4,667
Total assets	$	32,652		$	33,155
Other liabilities (a.)	$	2,115		$	2,074
Mortgage notes payable, non-recourse to us		15,395			21,206
Equity		15,142			9,875
Total liabilities and equity	$	32,652		$	33,155
Investments in and advances to LLCs before amounts included in
accrued expenses and other liabilities	$	14,632		$	9,102
Amounts included in accrued expenses and other liabilities		(1,738	)		(1,729	)
Our share of equity in LLCs, net	$	12,894		$	7,373

(a.)Other assets and other liabilities as of March 31, 2024 and December 31, 2023 include approximately $652,000 and $651,000, respectively, of right-of-use land assets and right-of-use land liabilities related to ground leases whereby the LLC/LP is the lessee, with third party lessors, including subsidiaries of UHS.

Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLC's/LPs Accounted Under Equity Method

As of March 31, 2024, and December 31, 2023, aggregate principal amounts due on mortgage notes payable by unconsolidated LLCs/LPs, which are accounted for under the equity method and are non-recourse to us, are as follows (amounts in thousands):

	Mortgage Loan Balance (a.)
Name of LLC/LP	3/31/2024		12/31/2023		Maturity Date
Brunswick Associates (2.80% fixed rate mortgage loan)	$	8,384	$	8,453	December, 2030
Grayson Properties II (3.70% fixed rate construction loan) (b.)		7,011		12,753	March, 2026
	$	15,395	$	21,206

(a.)All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity.

(b.)This construction loan required interest on the outstanding principal balance to be paid on a monthly basis through December 1, 2022. On January 1, 2023, monthly principal and interest payments on this loan commenced. During the first quarter of 2024, $5.7 million of the third-party construction loan was repaid utilizing pro-rate equity contributions from the partners, as discussed above. As a result of the repayment of a portion of the construction loan, an associated $3.1 million letter of credit was terminated.