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 |