Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-42129 | |
Entity Registrant Name | SILA REALTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-1854011 | |
Entity Address, Address Line One | 1001 Water Street, | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Tampa, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33602 | |
City Area Code | (813) | |
Local Phone Number | 287-0101 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | SILA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 55,018,168 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001567925 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Real estate: | |||
Land | $ 166,130 | $ 157,821 | |
Buildings and improvements, less accumulated depreciation of $251,413 and $227,156, respectively | 1,556,570 | 1,470,831 | |
Total real estate, net | 1,722,700 | 1,628,652 | |
Cash and cash equivalents | 86,971 | 202,019 | |
Intangible assets, less accumulated amortization of $112,069 and $102,456, respectively | 133,071 | 134,999 | |
Goodwill | 17,700 | 17,700 | |
Right-of-use assets | 36,027 | 36,384 | |
Other assets | 85,128 | 79,825 | |
Total assets | 2,081,597 | 2,099,579 | |
Liabilities: | |||
Credit facility, net of deferred financing costs of $3,699 and $1,847, respectively | 521,301 | 523,153 | |
Accounts payable and other liabilities | 38,742 | 30,381 | |
Intangible liabilities, less accumulated amortization of $8,131 and $7,417, respectively | 7,699 | 10,452 | |
Lease liabilities | 40,944 | 41,158 | |
Total liabilities | 608,686 | 605,144 | |
Stockholders’ equity: | |||
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value per share, 510,000,000 shares authorized; 61,670,830 and 61,154,404(1) shares issued, respectively; 57,216,478 and 56,983,564(1) shares outstanding, respectively | [1] | 572 | 570 |
Additional paid-in capital | 2,048,406 | 2,044,450 | |
Distributions in excess of accumulated earnings | (593,423) | (567,188) | |
Accumulated other comprehensive income | 17,356 | 16,603 | |
Total stockholders’ equity | 1,472,911 | 1,494,435 | |
Total liabilities and stockholders’ equity | $ 2,081,597 | $ 2,099,579 | |
[1]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information). |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Statement of Financial Position [Abstract] | |||
Buildings and improvements, accumulated depreciation | $ 251,413 | $ 227,156 | |
Intangible assets, accumulated amortization | 112,069 | 102,456 | |
Credit facility, deferred financing costs | 3,699 | 1,847 | |
Intangible liabilities, accumulated amortization | $ 8,131 | $ 7,417 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 510,000,000 | 510,000,000 | |
Common stock, shares issued (in shares) | [1] | 61,670,830 | 61,154,404 |
Common stock, shares outstanding (in shares) | [1] | 57,216,478 | 56,983,564 |
[1]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information). |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Revenue: | |||||
Rental revenue | $ 43,554 | $ 44,965 | $ 94,193 | $ 94,609 | |
Expenses: | |||||
Rental expenses | 5,849 | 4,873 | 11,403 | 9,723 | |
Listing-related expenses | 2,924 | 0 | 2,980 | 0 | |
General and administrative expenses | 5,347 | 5,547 | 13,521 | 11,650 | |
Depreciation and amortization | 20,246 | 18,803 | 39,144 | 37,355 | |
Impairment losses | 418 | 6,364 | 418 | 6,708 | |
Total operating expenses | 34,784 | 35,587 | 67,466 | 65,436 | |
Gain on real estate dispositions | 0 | 0 | 76 | 21 | |
Interest and other income | 1,051 | 141 | 3,292 | 147 | |
Interest expense | 5,193 | 5,664 | 10,487 | 11,286 | |
Net income attributable to common stockholders | 4,628 | 3,855 | 19,608 | 18,055 | |
Other comprehensive (loss) income - unrealized (loss) gain on interest rate swaps, net | (2,115) | 7,382 | 753 | (882) | |
Comprehensive income attributable to common stockholders | $ 2,513 | $ 11,237 | $ 20,361 | $ 17,173 | |
Weighted average number of common shares outstanding: | |||||
Basic (in shares) | [1] | 57,230,472 | 56,744,341 | 57,171,756 | 56,692,674 |
Diluted (in shares) | [1] | 57,601,204 | 57,208,783 | 57,574,634 | 57,155,224 |
Net income per common share attributable to common stockholders: | |||||
Basic (in dollars per share) | [1] | $ 0.08 | $ 0.07 | $ 0.34 | $ 0.32 |
Diluted (in dollars per share) | [1] | 0.08 | 0.07 | 0.34 | 0.32 |
Distributions declared per common share (in dollars per share) | [1] | $ 0.40 | $ 0.40 | $ 0.80 | $ 0.80 |
[1]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information). |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | ||||
Balance, (in shares) at Dec. 31, 2022 | [1] | 56,563,992 | |||||||
Balance beginning at Dec. 31, 2022 | $ 1,555,095 | $ 566 | [1] | $ 2,025,873 | [1] | $ (499,334) | $ 27,990 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under the distribution reinvestment plan (in shares) | [1] | 379,229 | |||||||
Issuance of common stock under the distribution reinvestment plan | 12,450 | $ 4 | [1] | 12,446 | [1] | ||||
Vesting of restricted stock (in shares) | [1] | 24,863 | |||||||
Stock-based compensation | [1] | $ 0 | 2,493 | ||||||
Other offering costs | (6) | (6) | [1] | ||||||
Repurchase of common stock (in shares) | [1] | (182,298) | |||||||
Repurchase of common stock | (5,994) | $ (2) | [1] | (5,992) | [1] | ||||
Distributions to common stockholders | (45,348) | (45,348) | |||||||
Other comprehensive income (loss) | (882) | (882) | |||||||
Net income | 18,055 | 18,055 | |||||||
Balance, (in shares) at Jun. 30, 2023 | [1] | 56,785,786 | |||||||
Balance ending at Jun. 30, 2023 | 1,535,863 | $ 568 | [1] | 2,034,814 | [1] | (526,627) | 27,108 | ||
Balance, (in shares) at Mar. 31, 2023 | [1] | 56,670,035 | |||||||
Balance beginning at Mar. 31, 2023 | 1,542,411 | $ 567 | [1] | 2,029,779 | [1] | (507,661) | 19,726 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under the distribution reinvestment plan (in shares) | [1] | 191,531 | |||||||
Issuance of common stock under the distribution reinvestment plan | 6,277 | $ 2 | [1] | 6,275 | [1] | ||||
Stock-based compensation | [1] | 1,251 | |||||||
Repurchase of common stock (in shares) | [1] | (75,780) | |||||||
Repurchase of common stock | (2,492) | $ (1) | [1] | (2,491) | [1] | ||||
Distributions to common stockholders | (22,821) | (22,821) | |||||||
Other comprehensive income (loss) | 7,382 | 7,382 | |||||||
Net income | 3,855 | 3,855 | |||||||
Balance, (in shares) at Jun. 30, 2023 | [1] | 56,785,786 | |||||||
Balance ending at Jun. 30, 2023 | $ 1,535,863 | $ 568 | [1] | 2,034,814 | [1] | (526,627) | 27,108 | ||
Balance, (in shares) at Dec. 31, 2023 | 56,983,564 | [2] | 56,983,564 | [3] | |||||
Balance beginning at Dec. 31, 2023 | $ 1,494,435 | $ 570 | [3] | 2,044,450 | [3] | (567,188) | 16,603 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under the distribution reinvestment plan (in shares) | [3] | 333,402 | |||||||
Issuance of common stock under the distribution reinvestment plan | 9,979 | $ 3 | [3] | 9,976 | [3] | ||||
Vesting of restricted stock (in shares) | [3] | 183,024 | |||||||
Stock-based compensation | 2,487 | $ 2 | [3] | 2,485 | [3] | ||||
Other offering costs | (26) | (26) | [3] | ||||||
Repurchase of common stock (in shares) | [3] | (283,512) | |||||||
Repurchase of common stock | (8,482) | $ (3) | [3] | (8,479) | [3] | ||||
Distributions to common stockholders | (45,843) | (45,843) | |||||||
Other comprehensive income (loss) | 753 | 753 | |||||||
Net income | $ 19,608 | 19,608 | |||||||
Balance, (in shares) at Jun. 30, 2024 | 57,216,478 | [2] | 57,216,478 | [3] | |||||
Balance ending at Jun. 30, 2024 | $ 1,472,911 | $ 572 | [3] | 2,048,406 | [3] | (593,423) | 17,356 | ||
Balance, (in shares) at Mar. 31, 2024 | [3] | 57,223,648 | |||||||
Balance beginning at Mar. 31, 2024 | 1,492,507 | $ 572 | [3] | 2,047,457 | [3] | (574,993) | 19,471 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under the distribution reinvestment plan (in shares) | [3] | 133,059 | |||||||
Issuance of common stock under the distribution reinvestment plan | 3,982 | $ 1 | [3] | 3,981 | [3] | ||||
Stock-based compensation | [3] | 1,163 | |||||||
Repurchase of common stock (in shares) | [3] | (140,229) | |||||||
Repurchase of common stock | (4,196) | $ (1) | [3] | (4,195) | [3] | ||||
Distributions to common stockholders | (23,058) | (23,058) | |||||||
Other comprehensive income (loss) | (2,115) | (2,115) | |||||||
Net income | $ 4,628 | 4,628 | |||||||
Balance, (in shares) at Jun. 30, 2024 | 57,216,478 | [2] | 57,216,478 | [3] | |||||
Balance ending at Jun. 30, 2024 | $ 1,472,911 | $ 572 | [3] | $ 2,048,406 | [3] | $ (593,423) | $ 17,356 | ||
[1]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).[2]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).[3]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information). |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income attributable to common stockholders | $ 19,608 | $ 18,055 |
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities: | ||
Depreciation and amortization | 39,144 | 37,355 |
Amortization of deferred financing costs | 1,029 | 825 |
Amortization of above- and below-market leases, net | 947 | 504 |
Other amortization expenses | 366 | 399 |
Gain on real estate dispositions | (76) | (21) |
Loss on extinguishment of debt | 228 | 0 |
Impairment losses | 418 | 6,708 |
Straight-line rent adjustments, net of write-offs | (2,473) | (1,273) |
Stock-based compensation | 2,487 | 2,493 |
Changes in operating assets and liabilities: | ||
Accounts payable and other liabilities | 9,406 | (1,670) |
Other assets | (2,872) | 831 |
Net cash provided by operating activities | 68,212 | 64,206 |
Cash flows from investing activities: | ||
Investments in real estate | (135,681) | (9,920) |
Proceeds from real estate dispositions | 1,439 | 12,241 |
Capital expenditures and other costs | (863) | (962) |
Payments of deposits for investments in real estate | (250) | 0 |
Net cash (used in) provided by investing activities | (135,355) | 1,359 |
Cash flows from financing activities: | ||
Proceeds from credit facility | 250,000 | 0 |
Payments on credit facility | (250,000) | (18,000) |
Payments of deferred financing costs | (2,577) | (12) |
Repurchase of common stock | (8,482) | (5,994) |
Offering costs on issuance of common stock | (61) | (10) |
Distributions to common stockholders | (36,785) | (32,969) |
Net cash used in financing activities | (47,905) | (56,985) |
Net change in cash, cash equivalents and restricted cash | (115,048) | 8,580 |
Cash, cash equivalents and restricted cash - Beginning of period | 202,185 | 13,083 |
Cash, cash equivalents and restricted cash - End of period | 87,137 | 21,663 |
Supplemental cash flow disclosure: | ||
Interest paid | 9,383 | 10,779 |
Supplemental disclosure of non-cash transactions: | ||
Common stock issued through distribution reinvestment plan | 9,979 | 12,450 |
Change in accrued distributions to common stockholders | (921) | (71) |
Change in accounts payable and other liabilities related to investing activities | 466 | 87 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 28 | $ 0 |
Organization and Business Opera
Organization and Business Operations | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Sila Realty Trust, Inc., or the Company, is a Maryland corporation, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. The Company is primarily focused on investing in high quality healthcare facilities across the continuum of care, which the Company believes typically generate predictable, durable and growing income streams. The Company may also make other real estate-related investments, which may include equity or debt interests in other real estate entities. Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership and directly and indirectly owns 100% of the Operating Partnership. Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries. New York Stock Exchange Listing and Reverse Stock Split On June 13, 2024, the Company's common stock, par value $0.01 per share, or the Common Stock, was listed and began trading on the New York Stock Exchange, or the NYSE, under the ticker symbol "SILA", or the Listing. Upon the Listing, all outstanding shares of Class I Common Stock and Class T Common Stock were automatically converted into shares of Class A Common Stock on a one-for-one basis and authorized but unissued shares of Class I Common Stock, Class T Common Stock and Class T2 Common Stock were reclassified into additional shares of Class A Common Stock. Class A Common Stock was then immediately renamed “Common Stock” and is the sole class of stock traded on the NYSE. On April 8, 2024, in anticipation of the Listing, the Company amended its charter to effect a one-for-four reverse stock split, or the Reverse Stock Split, of each issued and outstanding share of each class of Common Stock of the Company, effective May 1, 2024, and the Company also amended its charter to decrease the par value of each issued and outstanding share of the Company's Common Stock from $0.04 par value per share to $0.01 par value per share immediately after the Reverse Stock Split. In addition, equitable adjustments were made to the maximum number of shares of the Company's Common Stock that may be issued pursuant to the Company’s Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, and the maximum number of shares of the Company's Common Stock that may be granted under incentive stock awards under the A&R Incentive Plan, in each case, to reflect the Reverse Stock Split. The number of shares of the Company's Common Stock subject to outstanding awards under the A&R Incentive Plan were also equitably adjusted to reflect the Reverse Stock Split. The Reverse Stock Split affected all record holders of the Company’s Common Stock uniformly and did not affect any record holder’s percentage ownership interest. The Reverse Stock Split did not affect the number of the Company’s authorized shares of Common Stock. All references made to share or per share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted as though the Reverse Stock Split had been effected prior to all periods presented. "Dutch Auction" Tender Offer |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2023, and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the SEC on March 6, 2024. In the opinion of management, all adjustments, consisting of a normal and recurring nature considered for a fair presentation, have been included. Operating results for the three and six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash Cash consists of demand deposits at commercial banks. Cash equivalents consist of highly liquid investments in money market funds with original maturities of three months or less at the time of purchase. Restricted cash consists of cash held in an escrow account in accordance with a tenant's lease agreement. Restricted cash is reported in other assets in the accompanying condensed consolidated balance sheets. The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands): Six Months Ended 2024 2023 Beginning of period: Cash and cash equivalents $ 202,019 $ 12,917 Restricted cash 166 166 Cash, cash equivalents and restricted cash $ 202,185 $ 13,083 End of period: Cash and cash equivalents $ 86,971 $ 21,497 Restricted cash 166 166 Cash, cash equivalents and restricted cash $ 87,137 $ 21,663 Recently Issued Accounting Pronouncements Segment Reporting In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures , or ASU 2023-07, to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption of ASU 2023-07 is permitted. The Company is evaluating the disclosure requirements of ASU 2023-07 and does not anticipate that this update will have a material impact on its condensed consolidated financial statements. |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Acquisitions During the six months ended June 30, 2024, the Company purchased seven real estate properties in three separate transactions, which were determined to be asset acquisitions. The Company allocated the purchase price to tangible assets, consisting of land, building and improvements, tenant improvements; intangible assets, consisting of in-place leases and right-of-use assets; and lease liabilities, based on the relative fair value method of allocating all accumulated costs. The following table summarizes the consideration transferred, including acquisition costs, and the purchase price allocation for acquisitions during the six months ended June 30, 2024 (amounts in thousands): Property Description Date Acquired Ownership Percentage Consideration Transferred Brownsburg Healthcare Facility 02/26/2024 100% $ 39,115 Cave Creek Healthcare Facility 03/20/2024 100% 19,355 Marana Healthcare Facility 03/20/2024 100% 16,156 Surprise Healthcare Facility 03/20/2024 100% 18,602 Tucson Healthcare Facility V 03/20/2024 100% 15,994 Weslaco Healthcare Facility 03/20/2024 100% 15,713 Reading Healthcare Facility 05/21/2024 100% 10,754 Total $ 135,689 Total Land $ 8,821 Building and improvements 91,987 Tenant improvements 18,441 In-place leases 16,291 Right-of-use assets 177 Total assets acquired 135,717 Lease liabilities (28) Total liabilities acquired (28) Net assets acquired $ 135,689 The Company capitalized acquisition costs of $603,000, which are included in the allocation of the real estate acquisitions presented above. Dispositions On January 31, 2024, the Company sold one property for a sales price of $1,500,000, generating net proceeds of $1,439,000. The property was leased to a tenant under the common control of Vibra Healthcare, LLC, or Vibra. The Company was recognizing revenue from Vibra on a cash basis due to payment uncertainty. As a result of the property sale and lease termination, rental revenue from Vibra for the six months ended June 30, 2024, included $4,098,000 of lease termination income received from the former tenant, in addition to deferred rent from prior periods. Investment Risk Concentrations As of June 30, 2024, the Company did not have exposure to geographic concentration that accounted for at least 10.0% of rental revenue for the six months ended June 30, 2024. As of June 30, 2024, the Company had one exposure to tenant concentration that accounted for at least 10.0% of rental revenue for the six months ended June 30, 2024. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 14.5% of rental revenue for the six months ended June 30, 2024. Impairment Losses The Company recorded impairment losses on real estate of $418,000 for both the three and six months ended June 30, 2024, as a result of triggering events that occurred at certain properties. The fair values of these properties were determined based on the guidance in Accounting Standards Codification, or ASC, 820, Fair Value Measurement . These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land and buildings and improvements. During the three months ended June 30, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $2,564,000, $2,667,000, and $1,025,000, respectively, as a result of lease terminations and amendments. During the six months ended June 30, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $4,646,000, $2,825,000, and $2,038,000, respectively, as a result of lease terminations and amendments. The Company recorded impairment losses on real estate of $6,364,000 and $6,708,000 (including goodwill impairments of $1,238,000 and $1,582,000), for the three and six months ended June 30, 2023, respectively, as a result of tenant related triggering events that occurred at certain properties. The fair values of these properties were determined based on the guidance in ASC 820, Fair Value Measurement . These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related intangible assets. In addition, during both the three and six months ended June 30, 2023, the Company recorded an impairment of in-place lease and above-market lease intangible assets of $592,000 and $260,000, respectively. Impairment losses on real estate and goodwill impairments, if any, are recorded as impairment losses |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2024 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net Intangible assets, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts): June 30, 2024 December 31, 2023 In-place leases, net of accumulated amortization of $105,036 and $95,325, respectively (with a weighted average remaining life of 7.6 years and 7.8 years, respectively) $ 126,960 $ 125,188 Above-market leases, net of accumulated amortization of $7,033 and $7,131, respectively (with a weighted average remaining life of 6.2 years and 6.7 years, respectively) 6,111 9,811 $ 133,071 $ 134,999 The aggregate weighted average remaining life of the intangible assets was 7.6 years and 7.7 years as of June 30, 2024 and December 31, 2023, respectively. Amortization of intangible assets was $10,594,000 and $6,466,000 for the three months ended June 30, 2024 and 2023, respectively, and $18,072,000 and $12,206,000 for the six months ended June 30, 2024 and 2023, respectively. Amortization of in-place leases is included in depreciation and amortization, and amortization of above-market leases is recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income. |
Intangible Liabilities, Net
Intangible Liabilities, Net | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Lease Liabilities, Net [Abstract] | |
Intangible Liabilities, Net | Intangible Liabilities, Net Intangible liabilities, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts): June 30, 2024 December 31, 2023 Below-market leases, net of accumulated amortization of $8,131 and $7,417, respectively (with a weighted average remaining life of 6.6 years and 7.4 years, respectively) $ 7,699 $ 10,452 Amortization of below-market leases was $1,366,000 and $373,000 for the three months ended June 30, 2024 and 2023, respectively, and $2,753,000 and $747,000 for the six months ended June 30, 2024 and 2023, respectively. Amortization of below-market leases is recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessor The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants. Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands): June 30, 2024 (1) Period ending December 31, 2024 $ 90,410 2025 178,582 2026 173,345 2027 170,250 2028 166,030 Thereafter 865,393 Total $ 1,644,010 (1) The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of June 30, 2024. Lessee The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office. The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases. The effects of the Company's operating leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets. As of June 30, 2024, the Company's weighted average IBR for its operating leases was 5.5%. The weighted average remaining lease term for the Company's operating leases was 35.9 years as of June 30, 2024. The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): June 30, 2024 Period ending December 31, 2024 $ 1,367 2025 2,769 2026 2,716 2027 2,682 2028 2,694 Thereafter 104,865 Total undiscounted rental payments 117,093 Less imputed interest (76,149) Total lease liabilities $ 40,944 The following table provides details of the Company's total lease costs for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Three Months Ended Six Months Ended Location in Condensed Consolidated Statements of Comprehensive Income 2024 2023 2024 2023 Operating lease costs: Ground lease costs (1) Rental expenses $ 681 $ 681 $ 1,363 $ 1,363 Corporate operating lease costs General and administrative expenses 187 189 376 376 Supplemental disclosure of cash flows information: Operating cash outflows for operating leases (2) $ 176 $ 165 $ 419 $ 398 Right-of-use assets obtained in exchange for new lease liabilities $ 28 $ — $ 28 $ — (1) The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income. (2) Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases. |
Leases | Leases Lessor The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants. Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands): June 30, 2024 (1) Period ending December 31, 2024 $ 90,410 2025 178,582 2026 173,345 2027 170,250 2028 166,030 Thereafter 865,393 Total $ 1,644,010 (1) The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of June 30, 2024. Lessee The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office. The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases. The effects of the Company's operating leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets. As of June 30, 2024, the Company's weighted average IBR for its operating leases was 5.5%. The weighted average remaining lease term for the Company's operating leases was 35.9 years as of June 30, 2024. The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): June 30, 2024 Period ending December 31, 2024 $ 1,367 2025 2,769 2026 2,716 2027 2,682 2028 2,694 Thereafter 104,865 Total undiscounted rental payments 117,093 Less imputed interest (76,149) Total lease liabilities $ 40,944 The following table provides details of the Company's total lease costs for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Three Months Ended Six Months Ended Location in Condensed Consolidated Statements of Comprehensive Income 2024 2023 2024 2023 Operating lease costs: Ground lease costs (1) Rental expenses $ 681 $ 681 $ 1,363 $ 1,363 Corporate operating lease costs General and administrative expenses 187 189 376 376 Supplemental disclosure of cash flows information: Operating cash outflows for operating leases (2) $ 176 $ 165 $ 419 $ 398 Right-of-use assets obtained in exchange for new lease liabilities $ 28 $ — $ 28 $ — (1) The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income. (2) Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,452 and $1,917, respectively $ 1,738 $ 2,271 Leasing commissions, net of accumulated amortization of $236 and $191, respectively 1,822 593 Restricted cash 166 166 Tenant receivables 2,655 2,398 Straight-line rent receivable 55,548 53,248 Real estate deposits 250 — Prepaid and other assets 5,593 4,089 Derivative assets 17,356 17,060 $ 85,128 $ 79,825 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Liabilities | Accounts Payable and Other Liabilities Accounts payable and other liabilities consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Accounts payable and accrued expenses $ 8,274 $ 3,906 Accrued interest expense 1,590 1,714 Accrued property taxes 4,684 3,687 Accrued personnel costs 3,722 4,425 Distributions payable to stockholders 7,663 7,782 Performance DSUs distributions payable 338 1,140 Tenant deposits 1,789 877 Deferred rental income 10,682 6,393 Derivative liabilities — 457 $ 38,742 $ 30,381 |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company's outstanding credit facility as of June 30, 2024 and December 31, 2023 consisted of the following (amounts in thousands): June 30, 2024 December 31, 2023 2024 Variable rate term loan fixed through interest rate swaps $ — $ 250,000 2027 Variable rate term loan fixed through interest rate swaps 250,000 — 2028 Variable rate term loan fixed through interest rate swaps 275,000 275,000 Total credit facility, principal amount outstanding 525,000 525,000 Unamortized deferred financing costs related to credit facility term loans (3,699) (1,847) Total credit facility, net of deferred financing costs $ 521,301 $ 523,153 Significant activities regarding the credit facility during the six months ended June 30, 2024 include: • On March 20, 2024 the Company, the Operating Partnership, and certain of the Company's subsidiaries, entered into a senior unsecured amended and restated term loan agreement, or the 2027 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments of $250,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000. The maturity date for the 2027 Term Loan is March 20, 2027 and, at the Company's election, may be extended for a period of one year on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee. The 2027 Term Loan Agreement was entered into to replace the Company's prior term loan agreement, which was paid off in its entirety upon closing of the 2027 Term Loan Agreement. • In connection with the pay-off of our prior term loan agreement and entering into the 2027 Term Loan Agreement, the Company recognized a loss on extinguishment of debt of $228,000 during the six months ended June 30, 2024. The loss on extinguishment of debt was recognized in interest expense in the accompanying condensed consolidated statements of comprehensive income. The principal payments due on the credit facility as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Amount Period ending December 31, 2024 $ — 2025 — 2026 — 2027 250,000 2028 275,000 Thereafter — $ 525,000 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Cash and cash equivalents, restricted cash, tenant receivables, prepaid and other assets, accounts payable and other liabilities —The Company considers the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization. Credit facility —The outstanding principal of the credit facility was $525,000,000 and $525,000,000, which approximated its fair value due to the variable nature of the terms as of June 30, 2024 and December 31, 2023, respectively. The fair value of the Company's credit facility is estimated based on the interest rates currently offered to the Company by its financial institutions. Derivative instruments —The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company determined that the inputs used to value its interest rate swaps, with the exception of the credit valuation adjustment, fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of June 30, 2024, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy. Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or be liable for on disposition of the financial assets and liabilities. The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 17,356 $ — $ 17,356 Total assets at fair value $ — $ 17,356 $ — $ 17,356 December 31, 2023 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 17,060 $ — $ 17,060 Total assets at fair value $ — $ 17,060 $ — $ 17,060 Liabilities: Derivative liabilities $ — $ 457 $ — $ 457 Total liabilities at fair value $ — $ 457 $ — $ 457 Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities Real Estate Assets — As of June 30, 2024, two real estate assets were measured at an aggregate fair value of $15,500,000 and resulted in the recognition of an impairment loss of $418,000 for the six months ended June 30, 2024. The fair value was measured based on a third-party purchase offer for the assets, which resides within Level 2 of the fair value hierarchy. As of December 31, 2023, six real estate assets were measured at an aggregate fair value of $37,600,000 and resulted in the recognition of an impairment loss of $20,758,000 for the year ended December 31, 2023. The fair value of three real estate assets of $21,400,000 were measured based on third-party purchase offers for the assets, which reside within Level 2 of the fair value hierarchy. One of the real estate assets was sold in 2024. The fair value of three real estate assets of $16,200,000 were measured using a direct capitalization method or comparable sales information, which reside within Level 3 of the fair value hierarchy. The significant unobservable inputs for the Level 3 measurements include: Significant Unobservable Inputs December 31, 2023 Overall capitalization rate 8.5% Market rent per square foot $45.00 Range of comparable sale price per square foot $ 60.86 $ 98.04 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. For derivatives designated and qualifying as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $10,944,000 will be reclassified from accumulated other comprehensive income as a reduction to interest expense. The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity June 30, 2024 December 31, 2023 Outstanding Fair Value of Outstanding Fair Value of Assets (Liabilities) Assets (Liabilities) Interest rate swaps (1) 05/01/2022 to 12/31/2024 to $ 525,000 $ 17,356 $ — $ 525,000 $ 17,060 $ (457) (1) Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively. The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks. The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Derivatives in Cash Flow Amount of Income Recognized Location of Income Amount of Income Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income Three Months Ended June 30, 2024 Interest rate swaps $ 2,393 Interest expense $ 4,508 $ 5,193 Three Months Ended June 30, 2023 Interest rate swaps $ 11,464 Interest expense $ 4,082 $ 5,664 Six Months Ended June 30, 2024 Interest rate swaps $ 9,786 Interest expense $ 9,033 $ 10,487 Six Months Ended June 30, 2023 Interest rate swaps $ 6,770 Interest expense $ 7,652 $ 11,286 Credit Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of both June 30, 2024 and December 31, 2023, the Company had no derivatives with fair value in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of both June 30, 2024 and December 31, 2023, there were no termination events or events of default related to the interest rate swaps. Tabular Disclosure Offsetting Derivatives The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of June 30, 2024 and December 31, 2023 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net June 30, 2024 $ 17,356 $ — $ 17,356 $ — $ — $ 17,356 December 31, 2023 $ 17,060 $ — $ 17,060 $ (457) $ — $ 16,603 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net June 30, 2024 $ — $ — $ — $ — $ — $ — December 31, 2023 $ 457 $ — $ 457 $ (457) $ — $ — |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity On April 8, 2024, the Company amended its charter to effect a one-for-four reverse stock split, effective May 1, 2024. On June 13, 2024, authorized but unissued shares of Class I Common Stock, Class T Common Stock and Class T2 Common Stock were reclassified into additional shares of Class A Common Stock. Class A Common Stock was then immediately renamed “Common Stock” and is the sole class of stock traded on the NYSE. See Note 1—"Organization and Business Operations" for further details. Distributions Payable As of June 30, 2024, the Company had distributions payable of $7,663,000, which were paid in cash on July 15, 2024. On April 5, 2024, the board of directors, or the Board, approved the termination of the distribution reinvestment plan, effective May 1, 2024. Share Repurchases The Company’s Amended and Restated Share Repurchase Program, or the SRP, allowed for repurchases of shares of the Company’s Common Stock upon meeting certain criteria. On April 5, 2024, the Board approved the suspension of the SRP, effective immediately, and the termination of the SRP, effective upon the Listing. During the six months ended June 30, 2024, the Company repurchased 283,512 Class A shares, Class I shares and Class T shares of Common Stock, after giving effect to the Reverse Stock Split (246,024 Class A shares, 7,574 Class I shares and 29,914 Class T shares), for an aggregate purchase price of $8,482,000 (an average of $29.92 per share). During the six months ended June 30, 2023, the Company repurchased 182,298 Class A shares, Class I shares and Class T shares of Common Stock, after giving effect to the Reverse Stock Split (140,021 Class A shares, 10,986 Class I shares and 31,291 Class T shares), for an aggregate purchase price of $5,994,000 (an average of $32.88 per share). Accumulated Other Comprehensive Income The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the six months ended June 30, 2024 and 2023 (amounts in thousands): Unrealized Income Balance as of December 31, 2023 $ 16,603 Other comprehensive income before reclassification 9,786 Amount of income reclassified from accumulated other comprehensive income to net income (9,033) Other comprehensive income 753 Balance as of June 30, 2024 $ 17,356 Unrealized Loss on Derivative Instruments Balance as of December 31, 2022 $ 27,990 Other comprehensive income before reclassification 6,770 Amount of income reclassified from accumulated other comprehensive income to net income (7,652) Other comprehensive loss (882) Balance as of June 30, 2023 $ 27,108 The following table presents reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2024 and 2023 (amounts in thousands): Details about Accumulated Other Income Amounts Reclassified from Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income Six Months Ended 2024 2023 Interest rate swap contracts $ (9,033) $ (7,652) Interest expense |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its Common Stock outstanding for that period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities, which include non-vested shares of restricted Common Stock and performance-based deferred stock unit awards, or Performance DSUs. The non-vested shares of restricted Common Stock contain non-forfeitable dividend distribution rights. The Performance DSUs also have dividend distribution rights which are paid to the grantee only in the event that the applicable performance criteria is achieved and the Performance DSUs vest. For the three and six months ended June 30, 2024, diluted earnings per share reflected the effect of 371,000 and 403,000, respectively, of non-vested shares of restricted Common Stock and Performance DSUs that were outstanding after giving effect to the Reverse Stock Split. For the three and six months ended June 30, 2023, diluted earnings per share reflected the effect of 464,000 and 463,000, respectively, of non-vested shares of restricted Common Stock and Performance DSUs that were outstanding after giving effect to the Reverse Stock Split. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation On March 6, 2020, the Board approved the A&R Incentive Plan pursuant to which the Company has the authority and power to grant awards of restricted shares of its Common Stock to its directors, executive officers, and employees. The Company recognized no accelerated stock-based compensation expense for the three months ended June 30, 2024. The Company recognized accelerated stock-based compensation expense of $863,000 for the six months ended June 30, 2024, as a result of the acceleration of awards pursuant to severance agreements with two departed executive officers. The Company recognized total stock-based compensation expense of $1,163,000 and $1,251,000, respectively, for the three months ended June 30, 2024 and 2023, and $2,487,000 and $2,493,000, respectively, for the six months ended June 30, 2024 and 2023. Stock-based compensation expense is reported in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income, and forfeitures are recorded as they occur. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In the ordinary course of business, the Company may become subject to litigation or claims. As of June 30, 2024, there were, and currently there are, no material pending legal proceedings to which the Company is a party. While the resolution of a lawsuit or proceeding may have an impact to the Company's financial results for the period in which it is resolved, the Company believes that the final resolution of the lawsuits or proceedings in which it is currently involved, either individually or in the aggregate, will not have a material adverse effect on its financial position, results of operations or liquidity. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid to Stockholders On July 15, 2024, the Company paid cash distributions of $7,663,000 to the Company's stockholders of record as of the close of business on July 1, 2024. Distributions Authorized On July 16, 2024, the Board approved and authorized a distribution payable on August 15, 2024, to the Company's stockholders of record as of the close of business on July 31, 2024. The distribution will be equal to $0.1333 per share of Common Stock, representing an annualized amount of $1.60 per share. "Dutch Auction" Tender Offer On June 13, 2024, in conjunction with the Listing, the Company commenced the Tender Offer to purchase shares of its Common Stock for cash at a price per share of not greater than $24.00 nor less than $22.60, net to the seller in cash, less any applicable withholding taxes and without interest, for a maximum aggregate purchase price of no more than $50,000,000. The Tender Offer expired on July 19, 2024. As a result of the Tender Offer, the Company accepted for purchase 2,212,389 shares of Common Stock (which represented approximately 3.9% of the total number of shares of Common Stock outstanding as of July 19, 2024) at a purchase price of $22.60 per share, for an aggregate purchase price of approximately $50,000,000, excluding related fees and expenses. The Company funded the Tender Offer, and will fund all related costs, with its available cash. Acquisition of Fort Smith Healthcare Facility On July 25, 2024, the Company purchased 100% of the ownership interests in a healthcare property in Fort Smith, Arkansas, or the Fort Smith Healthcare Facility, for a contract purchase price of $28,250,000. Draw on Credit Facility On July 24, 2024, the Company borrowed $20,000,000 on its revolving line of credit to fund the acquisition of the Fort Smith Healthcare Facility. Time-Based Vesting Restricted Share Grant to Employees |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 4,628 | $ 3,855 | $ 19,608 | $ 18,055 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Segment Reporting In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures , or ASU 2023-07, to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption of ASU 2023-07 is permitted. The Company is evaluating the disclosure requirements of ASU 2023-07 and does not anticipate that this update will have a material impact on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands): Six Months Ended 2024 2023 Beginning of period: Cash and cash equivalents $ 202,019 $ 12,917 Restricted cash 166 166 Cash, cash equivalents and restricted cash $ 202,185 $ 13,083 End of period: Cash and cash equivalents $ 86,971 $ 21,497 Restricted cash 166 166 Cash, cash equivalents and restricted cash $ 87,137 $ 21,663 |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule of Consideration Transferred for Properties Acquired | The following table summarizes the consideration transferred, including acquisition costs, and the purchase price allocation for acquisitions during the six months ended June 30, 2024 (amounts in thousands): Property Description Date Acquired Ownership Percentage Consideration Transferred Brownsburg Healthcare Facility 02/26/2024 100% $ 39,115 Cave Creek Healthcare Facility 03/20/2024 100% 19,355 Marana Healthcare Facility 03/20/2024 100% 16,156 Surprise Healthcare Facility 03/20/2024 100% 18,602 Tucson Healthcare Facility V 03/20/2024 100% 15,994 Weslaco Healthcare Facility 03/20/2024 100% 15,713 Reading Healthcare Facility 05/21/2024 100% 10,754 Total $ 135,689 |
Schedule of Allocation of Acquisitions | Total Land $ 8,821 Building and improvements 91,987 Tenant improvements 18,441 In-place leases 16,291 Right-of-use assets 177 Total assets acquired 135,717 Lease liabilities (28) Total liabilities acquired (28) Net assets acquired $ 135,689 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts): June 30, 2024 December 31, 2023 In-place leases, net of accumulated amortization of $105,036 and $95,325, respectively (with a weighted average remaining life of 7.6 years and 7.8 years, respectively) $ 126,960 $ 125,188 Above-market leases, net of accumulated amortization of $7,033 and $7,131, respectively (with a weighted average remaining life of 6.2 years and 6.7 years, respectively) 6,111 9,811 $ 133,071 $ 134,999 |
Intangible Liabilities, Net (Ta
Intangible Liabilities, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Lease Liabilities, Net [Abstract] | |
Schedule of Intangible Liabilities, Net | Intangible liabilities, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts): June 30, 2024 December 31, 2023 Below-market leases, net of accumulated amortization of $8,131 and $7,417, respectively (with a weighted average remaining life of 6.6 years and 7.4 years, respectively) $ 7,699 $ 10,452 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Future Minimum Rent to Lessor from Operating Leases | Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands): June 30, 2024 (1) Period ending December 31, 2024 $ 90,410 2025 178,582 2026 173,345 2027 170,250 2028 166,030 Thereafter 865,393 Total $ 1,644,010 (1) The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of June 30, 2024. |
Schedule of Future Minimum Rent from Lessee for Operating Leases | The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): June 30, 2024 Period ending December 31, 2024 $ 1,367 2025 2,769 2026 2,716 2027 2,682 2028 2,694 Thereafter 104,865 Total undiscounted rental payments 117,093 Less imputed interest (76,149) Total lease liabilities $ 40,944 |
Schedule of Lease Cost | The following table provides details of the Company's total lease costs for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Three Months Ended Six Months Ended Location in Condensed Consolidated Statements of Comprehensive Income 2024 2023 2024 2023 Operating lease costs: Ground lease costs (1) Rental expenses $ 681 $ 681 $ 1,363 $ 1,363 Corporate operating lease costs General and administrative expenses 187 189 376 376 Supplemental disclosure of cash flows information: Operating cash outflows for operating leases (2) $ 176 $ 165 $ 419 $ 398 Right-of-use assets obtained in exchange for new lease liabilities $ 28 $ — $ 28 $ — (1) The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income. (2) Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases. |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,452 and $1,917, respectively $ 1,738 $ 2,271 Leasing commissions, net of accumulated amortization of $236 and $191, respectively 1,822 593 Restricted cash 166 166 Tenant receivables 2,655 2,398 Straight-line rent receivable 55,548 53,248 Real estate deposits 250 — Prepaid and other assets 5,593 4,089 Derivative assets 17,356 17,060 $ 85,128 $ 79,825 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Accounts payable and accrued expenses $ 8,274 $ 3,906 Accrued interest expense 1,590 1,714 Accrued property taxes 4,684 3,687 Accrued personnel costs 3,722 4,425 Distributions payable to stockholders 7,663 7,782 Performance DSUs distributions payable 338 1,140 Tenant deposits 1,789 877 Deferred rental income 10,682 6,393 Derivative liabilities — 457 $ 38,742 $ 30,381 |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facility | The Company's outstanding credit facility as of June 30, 2024 and December 31, 2023 consisted of the following (amounts in thousands): June 30, 2024 December 31, 2023 2024 Variable rate term loan fixed through interest rate swaps $ — $ 250,000 2027 Variable rate term loan fixed through interest rate swaps 250,000 — 2028 Variable rate term loan fixed through interest rate swaps 275,000 275,000 Total credit facility, principal amount outstanding 525,000 525,000 Unamortized deferred financing costs related to credit facility term loans (3,699) (1,847) Total credit facility, net of deferred financing costs $ 521,301 $ 523,153 |
Schedule of Future Principal Payments Due on Debt | The principal payments due on the credit facility as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Amount Period ending December 31, 2024 $ — 2025 — 2026 — 2027 250,000 2028 275,000 Thereafter — $ 525,000 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 17,356 $ — $ 17,356 Total assets at fair value $ — $ 17,356 $ — $ 17,356 December 31, 2023 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 17,060 $ — $ 17,060 Total assets at fair value $ — $ 17,060 $ — $ 17,060 Liabilities: Derivative liabilities $ — $ 457 $ — $ 457 Total liabilities at fair value $ — $ 457 $ — $ 457 |
Summary of Significant Unobservable Inputs | The significant unobservable inputs for the Level 3 measurements include: Significant Unobservable Inputs December 31, 2023 Overall capitalization rate 8.5% Market rent per square foot $45.00 Range of comparable sale price per square foot $ 60.86 $ 98.04 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Notional Amount and Fair Value of Derivative Instruments | The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity June 30, 2024 December 31, 2023 Outstanding Fair Value of Outstanding Fair Value of Assets (Liabilities) Assets (Liabilities) Interest rate swaps (1) 05/01/2022 to 12/31/2024 to $ 525,000 $ 17,356 $ — $ 525,000 $ 17,060 $ (457) (1) Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively. |
Schedule of Income and Losses Recognized on Derivative Instruments | The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Derivatives in Cash Flow Amount of Income Recognized Location of Income Amount of Income Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income Three Months Ended June 30, 2024 Interest rate swaps $ 2,393 Interest expense $ 4,508 $ 5,193 Three Months Ended June 30, 2023 Interest rate swaps $ 11,464 Interest expense $ 4,082 $ 5,664 Six Months Ended June 30, 2024 Interest rate swaps $ 9,786 Interest expense $ 9,033 $ 10,487 Six Months Ended June 30, 2023 Interest rate swaps $ 6,770 Interest expense $ 7,652 $ 11,286 |
Schedule of Offsetting of Derivative Assets | The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of June 30, 2024 and December 31, 2023 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net June 30, 2024 $ 17,356 $ — $ 17,356 $ — $ — $ 17,356 December 31, 2023 $ 17,060 $ — $ 17,060 $ (457) $ — $ 16,603 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net June 30, 2024 $ — $ — $ — $ — $ — $ — December 31, 2023 $ 457 $ — $ 457 $ (457) $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the six months ended June 30, 2024 and 2023 (amounts in thousands): Unrealized Income Balance as of December 31, 2023 $ 16,603 Other comprehensive income before reclassification 9,786 Amount of income reclassified from accumulated other comprehensive income to net income (9,033) Other comprehensive income 753 Balance as of June 30, 2024 $ 17,356 Unrealized Loss on Derivative Instruments Balance as of December 31, 2022 $ 27,990 Other comprehensive income before reclassification 6,770 Amount of income reclassified from accumulated other comprehensive income to net income (7,652) Other comprehensive loss (882) Balance as of June 30, 2023 $ 27,108 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table presents reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2024 and 2023 (amounts in thousands): Details about Accumulated Other Income Amounts Reclassified from Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income Six Months Ended 2024 2023 Interest rate swap contracts $ (9,033) $ (7,652) Interest expense |
Organization and Business Ope_2
Organization and Business Operations (Details) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 13, 2024 USD ($) $ / shares | Apr. 08, 2024 | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) | May 01, 2024 $ / shares | Apr. 30, 2024 $ / shares | Dec. 31, 2023 $ / shares | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.04 | $ 0.01 | |||
Repurchase of common stock | $ | $ 4,196,000 | $ 2,492,000 | $ 8,482,000 | $ 5,994,000 | |||||
Reverse stock split, conversion ratio | 0.25 | ||||||||
Dutch Auction | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Incurred deferred costs | $ | $ 1,863,000 | $ 1,863,000 | |||||||
Maximum | Dutch Auction | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Repurchase of common stock | $ | $ 50,000,000 | ||||||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 24 | ||||||||
Minimum | Dutch Auction | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 22.60 | ||||||||
Operating Partnership | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Ownership interest (as a percentage) | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 86,971 | $ 202,019 | $ 21,497 | $ 12,917 |
Restricted cash | 166 | 166 | 166 | 166 |
Cash, cash equivalents and restricted cash | $ 87,137 | $ 202,185 | $ 21,663 | $ 13,083 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2024 USD ($) property | Jun. 30, 2024 USD ($) tenant | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) acquisition property tenant | Jun. 30, 2023 USD ($) | |
Real Estate [Line Items] | |||||
Number of real estate properties acquired | property | 7 | ||||
Number of transactions | acquisition | 3 | ||||
Capitalized acquisition costs | $ 603 | ||||
Proceeds from real estate dispositions | 1,439 | $ 12,241 | |||
Impairment loss | $ 418 | $ 6,364 | $ 418 | $ 6,708 | |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment loss | Impairment loss | |||
Impairment of lease liabilities | 1,025 | $ 2,038 | |||
Impairment loss on goodwill | 1,238 | $ 1,582 | |||
In-place leases | |||||
Real Estate [Line Items] | |||||
Impairment of intangible assets | 2,564 | $ 592 | 4,646 | ||
Above-market leases | |||||
Real Estate [Line Items] | |||||
Impairment of intangible assets | $ 2,667 | $ 2,825 | $ 260 | ||
Revenue | Customer Concentration Risk | One Tenant | |||||
Real Estate [Line Items] | |||||
Number of major tenants | tenant | 1 | 1 | |||
Revenue | Customer Concentration Risk | Post Acute Medical LLC and affiliates | |||||
Real Estate [Line Items] | |||||
Concentration risk, percentage | 14.50% | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Real Estate [Line Items] | |||||
Number of real estate properties | property | 1 | ||||
Aggregate sales price | $ 1,500 | ||||
Proceeds from real estate dispositions | $ 1,439 | ||||
Termination lease income | $ 4,098 |
Real Estate - Schedule of Consi
Real Estate - Schedule of Consideration Transferred for Properties Acquired (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
May 21, 2024 | Mar. 20, 2024 | Feb. 26, 2024 | Jun. 30, 2024 | |
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 135,689 | |||
Brownsburg Healthcare Facility | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 39,115 | |||
Cave Creek Healthcare Facility | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 19,355 | |||
Marana Healthcare Facility | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 16,156 | |||
Surprise Healthcare Facility | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 18,602 | |||
Tucson Healthcare Facility V | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 15,994 | |||
Weslaco Healthcare Facility | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 15,713 | |||
Reading Healthcare Facility | ||||
Business Acquisition [Line Items] | ||||
Ownership Percentage | 100% | |||
Consideration transferred | $ 10,754 |
Real Estate - Schedule of Alloc
Real Estate - Schedule of Allocation of Acquisitions (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Real Estate [Abstract] | |
Land | $ 8,821 |
Building and improvements | 91,987 |
Tenant improvements | 18,441 |
In-place leases | 16,291 |
Right-of-use assets | 177 |
Total assets acquired | 135,717 |
Lease liabilities | (28) |
Total liabilities acquired | (28) |
Net assets acquired | $ 135,689 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ 112,069 | $ 102,456 |
Weighted average remaining useful life of intangible assets (in years) | 7 years 7 months 6 days | 7 years 8 months 12 days |
Intangible assets, net of accumulated amortization | $ 133,071 | $ 134,999 |
In-place leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ 105,036 | $ 95,325 |
Weighted average remaining useful life of intangible assets (in years) | 7 years 7 months 6 days | 7 years 9 months 18 days |
Intangible assets, net of accumulated amortization | $ 126,960 | $ 125,188 |
Above-market leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ 7,033 | $ 7,131 |
Weighted average remaining useful life of intangible assets (in years) | 6 years 2 months 12 days | 6 years 8 months 12 days |
Intangible assets, net of accumulated amortization | $ 6,111 | $ 9,811 |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted average remaining useful life of intangible assets (in years) | 7 years 7 months 6 days | 7 years 8 months 12 days | |||
Amortization of intangible assets | $ 10,594 | $ 6,466 | $ 18,072 | $ 12,206 |
Intangible Liabilities, Net - S
Intangible Liabilities, Net - Schedule of Intangible Liabilities, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Intangible Lease Liabilities, Net [Abstract] | ||
Accumulated amortization of below-market leases | $ 8,131 | $ 7,417 |
Weighted average remaining life of below-market leases | 6 years 7 months 6 days | 7 years 4 months 24 days |
Below-market leases, net of accumulated amortization | $ 7,699 | $ 10,452 |
Intangible Liabilities, Net - N
Intangible Liabilities, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Intangible Lease Liabilities, Net [Abstract] | ||||
Amortization of below-market leases | $ 1,366 | $ 373 | $ 2,753 | $ 747 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rent to Lessor from Operating Leases (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Period ending December 31, 2024 | $ 90,410 |
2025 | 178,582 |
2026 | 173,345 |
2027 | 170,250 |
2028 | 166,030 |
Thereafter | 865,393 |
Total | $ 1,644,010 |
Leases - Schedule of Rent Payme
Leases - Schedule of Rent Payments from Lessee (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Period ending December 31, 2024 | $ 1,367 | |
2025 | 2,769 | |
2026 | 2,716 | |
2027 | 2,682 | |
2028 | 2,694 | |
Thereafter | 104,865 | |
Total undiscounted rental payments | 117,093 | |
Less imputed interest | (76,149) | |
Total lease liabilities | $ 40,944 | $ 41,158 |
Weighted average IBR | 5.50% | |
Weighted average remaining lease term | 35 years 10 months 24 days |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental disclosure of cash flows information: | ||||
Operating cash outflows for operating leases | $ 176 | $ 165 | $ 419 | $ 398 |
Right-of-use assets obtained in exchange for new lease liabilities | 28 | 0 | 28 | 0 |
Rental expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | 681 | 681 | 1,363 | 1,363 |
General and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | $ 187 | $ 189 | $ 376 | $ 376 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,452 and $1,917, respectively | $ 1,738 | $ 2,271 |
Leasing commissions, net of accumulated amortization of $236 and $191, respectively | 1,822 | 593 |
Restricted cash | 166 | 166 |
Tenant receivables | 2,655 | 2,398 |
Straight-line rent receivable | 55,548 | 53,248 |
Real estate deposits | 250 | 0 |
Prepaid and other assets | 5,593 | 4,089 |
Derivative assets | 17,356 | 17,060 |
Total other assets | 85,128 | 79,825 |
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization | 2,452 | 1,917 |
Leasing commissions, accumulated amortization | $ 236 | $ 191 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 8,274 | $ 3,906 |
Accrued interest expense | 1,590 | 1,714 |
Accrued property taxes | 4,684 | 3,687 |
Accrued personnel costs | 3,722 | 4,425 |
Distributions payable to stockholders | 7,663 | 7,782 |
Performance DSUs distributions payable | 338 | 1,140 |
Tenant deposits | 1,789 | 877 |
Deferred rental income | 10,682 | 6,393 |
Derivative liabilities | 0 | 457 |
Total accounts payable and other liabilities | $ 38,742 | $ 30,381 |
Credit Facility - Schedule of C
Credit Facility - Schedule of Credit Facility (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Total credit facility, principal amount outstanding | $ 525,000 | $ 525,000 |
Unamortized deferred financing costs related to credit facility term loans | (3,699) | (1,847) |
Total credit facility, net of deferred financing costs | 521,301 | 523,153 |
Term Loan | 2024 Variable rate term loan fixed through interest rate swaps | ||
Line of Credit Facility [Line Items] | ||
Total credit facility, principal amount outstanding | 0 | 250,000 |
Term Loan | 2027 Variable rate term loan fixed through interest rate swaps | ||
Line of Credit Facility [Line Items] | ||
Total credit facility, principal amount outstanding | 250,000 | 0 |
Term Loan | 2028 Variable rate term loan fixed through interest rate swaps | ||
Line of Credit Facility [Line Items] | ||
Total credit facility, principal amount outstanding | $ 275,000 | $ 275,000 |
Credit Facility - Narrative (De
Credit Facility - Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 USD ($) extension | Jun. 30, 2023 USD ($) | Mar. 20, 2024 USD ($) | |
Line of Credit Facility [Line Items] | |||
2027 term loan, extension period | 1 year | ||
Number of extensions | extension | 2 | ||
Loss on extinguishment of debt | $ 228 | $ 0 | |
2027 Term Loan | Term Loan | |||
Line of Credit Facility [Line Items] | |||
Commitments available | $ 250,000 | ||
Maximum borrowing capacity | $ 500,000 |
Credit Facility - Schedule of P
Credit Facility - Schedule of Principal Payments Due on Credit Facility (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Period ending December 31, 2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 250,000 |
2028 | 275,000 |
Thereafter | 0 |
Total | $ 525,000 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total credit facility, principal amount outstanding | $ 525,000 | $ 525,000 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other liabilities | Accounts payable and other liabilities |
Real estate assets | $ 1,722,700 | $ 1,628,652 |
Impairment loss on real estate | 418 | 20,758 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate assets | 37,600 | |
Significant Other Observable Inputs (Level 2) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate assets | $ 15,500 | 21,400 |
Significant Unobservable Inputs (Level 3) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate assets | $ 16,200 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Derivative assets | $ 17,356 | $ 17,060 |
Liabilities: | ||
Derivative liabilities | 0 | 457 |
Recurring basis | ||
Assets: | ||
Derivative assets | 17,356 | 17,060 |
Total assets at fair value | 17,356 | 17,060 |
Liabilities: | ||
Derivative liabilities | 457 | |
Total liabilities at fair value | 457 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | |
Total liabilities at fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Assets: | ||
Derivative assets | 17,356 | 17,060 |
Total assets at fair value | 17,356 | 17,060 |
Liabilities: | ||
Derivative liabilities | 457 | |
Total liabilities at fair value | 457 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | $ 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | |
Total liabilities at fair value | $ 0 |
Fair Value - Schedule of Signif
Fair Value - Schedule of Significant Unobservable Inputs (Details) - Significant Unobservable Inputs (Level 3) | Dec. 31, 2023 $ / sqft |
Overall capitalization rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Real estate assets, measurement input | 0.085 |
Market rent per square foot | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Real estate assets, measurement input | 45 |
Range of comparable sale price per square foot | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Real estate assets, measurement input | 60.86 |
Range of comparable sale price per square foot | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Real estate assets, measurement input | 98.04 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Additional gain expected to be reclassified from AOCI into earnings during next twelve months | $ 10,944 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of the Notional Amount and Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 17,356 | $ 17,060 |
Fair Value of Liability | 0 | (457) |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional Amount | 525,000 | 525,000 |
Interest rate swaps | Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | 17,356 | 17,060 |
Interest rate swaps | Designated as Hedging Instrument | Accounts Payable and Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Liability | $ 0 | $ (457) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Income and Losses Recognized on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income | $ 5,193 | $ 5,664 | $ 10,487 | $ 11,286 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income Recognized in Other Comprehensive Income (Loss) on Derivatives | 2,393 | 11,464 | 9,786 | 6,770 |
Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income Reclassified From Accumulated Other Comprehensive Income to Net Income | $ 4,508 | $ 4,082 | $ 9,033 | $ 7,652 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 17,356 | $ 17,060 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 17,356 | 17,060 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | (457) |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | 0 |
Net Amount | $ 17,356 | $ 16,603 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 0 | $ 457 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 0 | 457 |
Financial Instruments Collateral | 0 | (457) |
Cash Collateral | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Apr. 08, 2024 | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | |||||
Class of Stock [Line Items] | ||||||||||
Reverse stock split, conversion ratio | 0.25 | |||||||||
Distributions payable to stockholders | $ | $ 7,663 | $ 7,663 | $ 7,782 | |||||||
Repurchase of common stock | $ | $ 4,196 | $ 2,492 | $ 8,482 | $ 5,994 | ||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock (in shares) | 140,229 | [1] | 75,780 | [2] | 283,512 | [1] | 182,298 | [2] | ||
Repurchase of common stock | $ | $ 1 | [1] | $ 1 | [2] | $ 3 | [1] | $ 2 | [2] | ||
Class A, I and T Shares | Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock (in shares) | 283,512 | 182,298 | ||||||||
Repurchase of common stock | $ | $ 8,482 | $ 5,994 | ||||||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 29.92 | $ 32.88 | ||||||||
Common Class A | Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock (in shares) | 246,024 | 140,021 | ||||||||
Common Class I | Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock (in shares) | 7,574 | 10,986 | ||||||||
Common Class T | Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common stock (in shares) | 29,914 | 31,291 | ||||||||
[1]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).[2]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information). |
Stockholders' Equity - Amounts
Stockholders' Equity - Amounts Recognized in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning | $ 1,492,507 | $ 1,542,411 | $ 1,494,435 | $ 1,555,095 |
Other comprehensive income (loss) | (2,115) | 7,382 | 753 | (882) |
Balance ending | 1,472,911 | 1,535,863 | 1,472,911 | 1,535,863 |
Unrealized Income (Loss) on Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning | 16,603 | 27,990 | ||
Other comprehensive income before reclassification | 9,786 | 6,770 | ||
Amount of income reclassified from accumulated other comprehensive income to net income | (9,033) | (7,652) | ||
Other comprehensive income (loss) | 753 | (882) | ||
Balance ending | $ 17,356 | $ 27,108 | $ 17,356 | $ 27,108 |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest rate swap contracts | $ (4,628) | $ (3,855) | $ (19,608) | $ (18,055) |
Interest rate swaps | Income Amounts Reclassified from Accumulated Other Comprehensive Income to Net Income | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest rate swap contracts | $ (9,033) | $ (7,652) |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Diluted earnings per share outstanding adjustment (in shares) | 371 | 464 | 403 | 463 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Accelerated stock-based compensation | $ 0 | $ 863,000 | ||
Stock-based compensation | $ 1,163,000 | $ 1,251,000 | $ 2,487,000 | $ 2,493,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2024 legal_proceeding |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending legal proceedings to which the company is a party | 0 |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended | 6 Months Ended | |||||||||||
Jul. 25, 2024 USD ($) | Jul. 24, 2024 USD ($) | Jul. 19, 2024 USD ($) $ / shares shares | Jul. 16, 2024 $ / shares | Jul. 15, 2024 USD ($) | Jul. 02, 2024 USD ($) shares | Jun. 13, 2024 $ / shares | Jun. 30, 2024 $ / shares shares | Jun. 30, 2023 $ / shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2023 shares | ||
Subsequent Event [Line Items] | |||||||||||||
Distributions declared per common share (in dollars per share) | $ / shares | [1] | $ 0.40 | $ 0.40 | $ 0.80 | $ 0.80 | ||||||||
Common stock, shares outstanding (in shares) | shares | [2] | 57,216,478 | 57,216,478 | 56,983,564 | |||||||||
Repurchase of common stock | $ 8,482,000 | $ 5,994,000 | |||||||||||
Proceeds from credit facility | $ 250,000,000 | $ 0 | |||||||||||
Maximum | Dutch Auction | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 24 | ||||||||||||
Minimum | Dutch Auction | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 22.60 | ||||||||||||
Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Distributions paid | $ 7,663,000 | ||||||||||||
Distributions declared per common share (in dollars per share) | $ / shares | $ 0.1333 | ||||||||||||
Annualized distribution per share (in dollars per share) | $ / shares | $ 1.60 | ||||||||||||
Subsequent Event | Restricted Stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Awards granted (in shares) | shares | 87,269 | ||||||||||||
Award vesting under plan, percentage per annum | 25% | ||||||||||||
Unrecognized stock-based compensation expense | $ 1,802,000 | ||||||||||||
Subsequent Event | Dutch Auction | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock redeemed or called during period, percentage of shares oustanding | 0.039 | ||||||||||||
Repurchase of common stock | $ 50,000,000 | ||||||||||||
Repurchase of common stock (in shares) | shares | 2,212,389 | ||||||||||||
Subsequent Event | Fort Smith Healthcare Facility | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Ownership interests (as a percentage) | 100% | ||||||||||||
Cash paid in transaction | $ 28,250,000 | ||||||||||||
Proceeds from credit facility | $ 20,000,000 | ||||||||||||
Subsequent Event | Dutch Auction | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 22.60 | ||||||||||||
[1]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).[2]Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information). |