LEASES (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Schedule of Operating Lease Expenses

The components of operating lease expense are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Rent - cost of services(1)	$	38,907	$	35,623	$	111,897	$	103,534
General and administrative expense	33		23		79		64
Depreciation and amortization(2)	289		289		866		869
Variable lease costs(3)	4,121		3,582		13,256		10,719
	$	43,350	$	39,517	$	126,098	$	115,186

(1)Rent- cost of services includes deferred rent expense adjustments of $111 and $351 for the three and nine months ended September 30, 2022, respectively and $125 and $346 for the three and nine months ended September 30, 2021, respectively. Additionally, rent- cost of services includes other variable lease costs such as CPI increases and short-term leases of $1,758 and $3,997 for the three and nine months ended September 30, 2022, respectively, and $1,127 and $2,543 for the three and nine months ended September 30, 2021, respectively.

(2)Depreciation and amortization is related to the amortization of favorable and direct lease costs.

(3)Variable lease costs, including property taxes and insurance, are classified in cost of services in the Company's condensed consolidated statements of income.

Schedule of Future Minimum Lease Payments

Future minimum lease payments for all leases as of September 30, 2022 are as follows:

Year	Amount
2022 (remainder)	$	37,045
2023	147,092
2024	146,501
2025	146,393
2026	146,288
2027	145,770
Thereafter	1,330,030
TOTAL LEASE PAYMENTS	2,099,119
Less: present value adjustment	(778,451)
PRESENT VALUE OF TOTAL LEASE LIABILITIES	1,320,668
Less: current lease liabilities	(60,951)
LONG-TERM OPERATING LEASE LIABILITIES	$	1,259,717

Schedule of Rental Income from Third-Party Sources

Total rental income from all third-party sources for the three and nine months ended September 30, 2022 and 2021 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Pennant(1)	$	3,664	$	3,468	$	11,169	$	10,396
Other third-party	458		465		1,381		1,441
	$	4,122	$	3,933	$	12,550	$	11,837

(1) Pennant rental income includes variable rent such as property taxes of $331 and $988 during the three and nine months ended September 30, 2022 and $301 and $881 for the three and nine months ended September 30, 2021.

Schedule of Annual Rental Income

Future annual rental income for all leases as of September 30, 2022 were as follows:

Year	Amount(1)
2022 (remainder)	$	4,146
2023	16,234
2024	15,737
2025	15,391
2026	15,166
2027	15,166
Thereafter	79,171
TOTAL	$	161,011

(1) Annual rental income includes base rents and variable rental income pursuant to existing leases as of September 30, 2022.