Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

8.	Commitments and Contingencies

At March 31, 2022, we had commitments as follows (in thousands):


						Total
	Investment			2022		Commitment		Remaining
	Commitment			Funding		Funded		Commitment
Real estate properties(Footnote 2. Real Estate Investments)	$	13,235	⁽¹⁾	$	948	$	2,587	$	10,648
Accrued incentives and earn-out liabilities (Footnote 5. Lease Incentives) ⁽³⁾		9,000			—		—		9,000
Mortgage loans (Footnote 2. Real Estate Investments)		31,575	⁽²⁾		376		4,172		27,403
Notes receivable (Footnote 4. Notes Receivable)		25,250			9,791		18,892		6,358
Total	$	79,060		$	11,115	$	25,651	$	53,409

(1)	Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties.

(2)	Represents $13,575 of commitments for the expansion, renovation and working capital of the seniors housing and health care properties securing the mortgage loans and $18,000 of commitments which are contingent upon the borrower achieving certain coverage ratios.

(3)

Subsequent to March 31, 2022, we purchased four skilled nursing centers for $51,534 and leased these properties under a 10-year lease with an existing operator. The lease provides either an earn-out payment up to $3,000 or a purchase option but not both. The earn-out payment is available, contingent on achieving certain thresholds per the lease, beginning at the end of the second lease year through the end of the fifth lease year. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the purchase option see Footnote 2.

Also, some of our lease agreements provide purchase options allowing the lessee to purchase the properties they currently lease from us. See Footnote 2. Real Estate Investments for a table summarizing information about our purchase options.

We are a party from time to time to various general and professional liability claims and lawsuits asserted against the lessees or borrowers of our properties, which in our opinion are not singularly or in the aggregate material to our results of operations or financial condition. These types of claims and lawsuits may include matters involving general or professional liability, which we believe under applicable legal principles are not our responsibility as a non-possessory landlord or mortgage holder. We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims.