Unconsolidated Variable Interest Entities

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Unconsolidated Variable Interest Entities

Unconsolidated Variable Interest EntitiesThe Company’s unconsolidated VIEs are summarized below by date of initial involvement. For further discussion of the nature of the relationships, including the sources of exposure to these VIEs, see the notes to our condensed consolidated financial statements cross-referenced below ($ in thousands).

Date	Name	Source of Exposure	Carrying Amount		Maximum Exposure to Loss		Note Reference
2014	Senior Living	Notes and straight-line receivable	$	90,059	$	93,809	Notes 3, 4
2016	Senior Living Management	Notes	$	24,500	$	24,500	—
2018	Bickford	Notes and funding commitment	$	17,105	$	29,912	Notes 3, 4
2019	Encore Senior Living	Various1	$	49,582	$	56,166	—
2020	Timber Ridge OpCo	Various2	$	2,605	$	7,605	Notes 6, 7
2020	Watermark Retirement	Notes and straight-line receivable	$	8,754	$	11,278	—
2021	Montecito Medical Real Estate	Notes and funding commitment	$	20,372	$	50,117	Note 4
2021	Vizion Health	Notes and straight-line receivable	$	18,994	$	18,994	—
2021	Navion Senior Solutions	Various3	$	8,820	$	8,820	—
2023	Kindcare Senior Living	Notes	$	704	$	704	—

1 Notes, straight-line rent receivables, and lease receivables

2 Loan commitment, equity method investment, straight-line rent receivables and unamortized lease incentive

3 Notes, loan commitments, straight-line rent receivables, and unamortized lease incentive

We are not obligated to provide support beyond our stated commitments to these tenants and borrowers whom we classify as VIEs, and accordingly, our maximum exposure to loss as a result of these relationships is limited to the amount of our commitments, as shown above and discussed in the notes. Economic loss on a lease, in excess of what is presented in the table above, if any, would be limited to that resulting from any period of non-payment of rent before we are able to take effective remedial action, as well as costs incurred in transitioning the lease to a new tenant. The potential extent of such loss would be dependent upon individual facts and circumstances, and is therefore not included in the table above.

In the future, NHI may be deemed the primary beneficiary of the operations if the tenants or borrowers do not have adequate liquidity to accept the risks and rewards as the tenants and operators of the properties and NHI may be required to consolidate the financial position and results of operations of the tenants or borrowers into our condensed consolidated financial statements.