[1]

This LLC has a third-party term loan of $8.2 million, which is non-recourse to us, outstanding as of September 30, 2024.

[2]

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

[3]

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 was 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, of which $7.5 million, net, has been funded as of September 30, 2024. This LP entered into a third-party construction loan commitment, which is non-recourse to us, which had an outstanding balance of $6.9 million as of September 30, 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, which was repaid during July, 2024 with interest. 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.

Below are the condensed combined statements of income (unaudited) for the four LLCs/LPs accounted for under the equity method at September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(amounts in thousands)				(amounts in thousands)
Revenues	$	2,217	$	2,269	$	6,524	$	6,538
Operating expenses		951		967	$	2,675		2,684
Depreciation and amortization		476		478	$	1,422		1,394
Interest, net		142		199	$	443		638
Net income	$	648	$	625	$	1,984	$	1,822
Our share of net income	$	300	$	314	$	956	$	953

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 September 30, 2024 and December 31, 2023:


	September 30, 2024			December 31, 2023
	(amounts in thousands)
Net property, including construction in progress	$	27,391		$	28,488
Other assets (a.)		5,132			4,667
Total assets	$	32,523		$	33,155

Other liabilities (a.)	$	2,628		$	2,074
Mortgage notes payable, non-recourse to us		15,165			21,206
Equity		14,730			9,875
Total liabilities and equity	$	32,523		$	33,155

Investments in and advances to LLCs before amounts included in
accrued expenses and other liabilities	$	14,260		$	9,102
Amounts included in accrued expenses and other liabilities		(1,760	)		(1,729	)
Our share of equity in LLCs, net	$	12,500		$	7,373

(a.)

Other assets and other liabilities as of September 30, 2024 and December 31, 2023 include approximately $649,000 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.

[4]

This LP constructed, owns and operates the Texoma Medical Plaza II, on which construction was 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, of which $7.5 million, net, has been funded as of September 30, 2024. This LP entered into a third-party construction loan commitment, which is non-recourse to us, which had an outstanding balance of $6.9 million as of September 30, 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, which was repaid during July, 2024 with interest. 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.

[5]

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