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Investment in Unconsolidated Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2023

Investment in Unconsolidated Joint Ventures

Summary of the preferred equity investments

Type

Type

Total

Contractual

Number

of

of

Preferred

Cash

of

Carrying

State

Properties

Investment

Return

Portion

Beds/ Units

Value

Washington

ALF/MC

Preferred Equity

⁽¹⁾

12

%

7

%

95

$

6,340

⁽¹⁾

Washington

ILF/ALF

Preferred Equity

⁽²⁾

14

%

8

%

267

13,000

⁽²⁾

Total

362

$

19,340

(1)	Represents a preferred equity in an entity that developed and owns a 95-unit ALF and MC in Washington. Our investment

represents 15.5% of the total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the internal rate of return (“IRR”) is 8%. After achieving an 8% IRR, the cash rate drops to 8% until achieving an IRR ranging between 12% to 14%, depending upon timing of redemption. We have the option to require the JV partner to purchase our preferred equity interest at any time between August 17, 2031 and December 31, 2036.

(2)

Represents a preferred equity in an entity that developed and owns a 267-unit ILF and ALF in Washington. The development project was completed during the fourth quarter of 2023. Our investment represents 11.6% of the estimated total investment. The preferred equity investment earns an initial cash rate of 8% with an IRR of 14%. The JV partner has the option to buy out our investment at any time after August 31, 2023 at the IRR rate. Also, we have the option to require the JV partner to purchase our preferred equity interest at any time between August 31, 2027 and, upon project completion and leasing the property, prior to the end of the first renewal term of the lease.

Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint ventures


		Type
		of			Capital			Income			Cash Income			Non-cash
Year		Properties			Contribution			Recognized			Earned			Income Accrued
2023		ALF/MC		$	—		$	450		$	56		$	394
		ILF/ALF ⁽¹⁾			—			1,054			—			1,054
Total				$	—		$	1,504		$	56		$	1,448

2022		ALF/MC		$	—		$	450		$	—		$	450
		UDP ⁽¹⁾			—			1,054			351			703
Total				$	—		$	1,504		$	351		$	1,153

2021		ALF/MC		$	—		$	450		$	—		$	412
		UDP ⁽¹⁾			8,000			967			—			880
Total				$	8,000		$	1,417		$	—		$	1,292

(1)	The JV developed and owns a 267-unit ILF and ALF in Washington. The development project was completed during the fourth quarter of 2023.