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Investment Activity (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Business Acquisitions, by Acquisition

Since January 1, 2023, we have completed the following real estate investments ($ in thousands):


Operator	Date	Properties	Asset Class	Land		Building and Improvements		Total
Silverado Senior Living	Q1 2023	2	ALF	$	3,894	$	33,599	$	37,493
Bickford	Q1 2023	1	ALF	1,746		15,542		17,288
				$	5,640	$	49,141	$	54,781

Schedule of Asset Disposition

During the nine months ended September 30, 2023, we completed the following dispositions of real estate properties within our Real Estate Investments portfolio as described below ($ in thousands):


Operator	Date	Properties	Asset Class	Net Proceeds		Net Real Estate Investment		Gain		Impairment2
BAKA Enterprises, LLC1,3	Q1 2023	1	ALF	$	7,478	$	7,505	$	—	$	(27)
Bickford1	Q1 2023	1	ALF	2,553		1,421		1,132		—
Chancellor Senior Living1,3	Q2 2023	1	ALF	2,355		1,977		378		—
Milestone Retirement1,3,4	Q2 2023	2	ALF	3,803		3,934		—		(131)
Chancellor Senior Living1,3	Q2 2023	1	ALF	7,633		6,140		1,493		—
Milestone Retirement1,3,4	Q2 2023	1	ALF	1,602		1,452		150		—
Chancellor Senior Living	Q2 2023	1	ALF	23,724		14,476		9,248		—
Chancellor Senior Living1,3	Q3 2023	1	ALF	2,923		2,292		631		—
				$	52,071	$	39,197	$	13,032	$	(158)

1 Assets were previously classified as “Assets held for sale” in the Consolidated Balance Sheet at December 31, 2022.

2 Impairments are included in “Loan and realty losses” in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023.

3 Total impairment charges previously recognized on these properties were $16.4 million in the aggregate.

4 The Company provided aggregate financing of approximately $0.7 million, net of discounts, on these transactions in the form of notes receivable.

Disclosure of Long-Lived Assets Held-for-sale

The following is a summary of our assets held for sale ($ in thousands):


	As of	As of
	September 30, 2023	December 31, 2022
Number of properties	4	13
Real estate, net	$10,875	$43,302

Schedule of Tenant Concentrations

The following table contains information regarding concentration in our Real Estate Investments portfolio of tenants or affiliates of tenants, that exceed 10% of total revenues for the nine months ended September 30, 2023 and 2022, excluding $2.6 million for our corporate office, a credit loss reserve of $15.8 million and $344.4 million in real estate assets in the SHOP segment ($ in thousands):


	as of September 30, 2023					Revenues1
	Asset	Gross Real		Notes		Nine Months Ended September 30,
	Class	Estate		Receivable		2023			2022

Senior Living Communities, LLC (“Senior Living”)	EFC	$	573,631	$	48,950	$	38,466	16%	$	38,325	18%
Bickford2	ALF	429,043		16,827		29,280		12%	N/A		N/A
National HealthCare Corporation (“NHC”)	SNF	133,770		—		28,159		12%	27,875		13%
All others, net	Various	1,293,210		192,991		99,867		41%	109,766		53%
Escrow funds received from tenants
for property operating expenses	Various	—		—		8,738		4%	7,553		4%
		$	2,429,654	$	258,768	204,510			183,519
Resident fees and services3						35,860		15%	24,005		12%
						$	240,370		$	207,524

1 Includes interest income on notes receivable and rental income from properties classified as held for sale.

2 Revenues for the nine months ended September 30, 2022 are included in “All others, net” since they are less than 10% for that period.

3 There is no tenant concentration in “Resident fees and services” because these agreements are with individual residents.

Schedule of Future Minimum Base Rent

Future minimum lease payments to be received by us under our operating leases at September 30, 2023, are as follows ($ in thousands):


Remainder of 2023	$	57,301
2024	237,531
2025	241,391
2026	246,792
2027	201,627
2028	195,138
Thereafter	679,952
	$	1,859,732

Schedule of Fixed and Variable Lease Payments

The table below indicates the rental income recognized as a result of fixed and variable lease escalators ($ in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Lease payments based on fixed escalators	$	57,200	$	53,394	$	169,675	$	172,767
Lease payments based on variable escalators	1,830		1,224		5,879		2,452
Straight-line rent, net of write-offs	1,040		2,476		6,011		(11,360)
Escrow funds received from tenants for property operating expenses	2,908		2,358		8,738		7,553
Amortization and write-off of lease incentives	(723)		(58)		(1,798)		(7,477)
Rental income	$	62,255	$	59,394	$	188,505	$	163,935