Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 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 | 001-36181 | |
Entity Registrant Name | CareTrust REIT, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-3999490 | |
Entity Address, Address Line One | 905 Calle Amanecer | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | San Clemente | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92673 | |
City Area Code | 949 | |
Local Phone Number | 542-3130 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CTRE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 154,209,269 | |
Entity Central Index Key | 0001590717 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Real estate investments, net | $ 1,706,231 | $ 1,567,119 |
Other real estate related investments (including accrued interest of $3,540 as of June 30, 2024 and $1,727 as of December 31, 2023) | 433,532 | 180,368 |
Assets held for sale | 28,753 | 15,011 |
Cash and cash equivalents | 495,134 | 294,448 |
Accounts and other receivables | 1,096 | 395 |
Prepaid expenses and other assets, net | 30,502 | 23,337 |
Deferred financing costs, net | 3,506 | 4,160 |
Total assets | 2,698,754 | 2,084,838 |
Liabilities and Equity: | ||
Senior unsecured notes payable, net | 396,483 | 396,039 |
Senior unsecured term loan, net | 199,665 | 199,559 |
Secured borrowing | 75,000 | 0 |
Accounts payable, accrued liabilities and deferred rent liabilities | 37,112 | 33,992 |
Dividends payable | 44,721 | 36,531 |
Total liabilities | 752,981 | 666,121 |
Commitments and contingencies (Note 12) | ||
Equity: | ||
Preferred stock, $0.01 par value; 100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 153,881,933 and 129,992,796 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 1,539 | 1,300 |
Additional paid-in capital | 2,456,187 | 1,883,147 |
Cumulative distributions in excess of earnings | (514,037) | (467,628) |
Total stockholders’ equity | 1,943,689 | 1,416,819 |
Noncontrolling interests | 2,084 | 1,898 |
Total equity | 1,945,773 | 1,418,717 |
Total liabilities and equity | $ 2,698,754 | $ 2,084,838 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Other real estate related investments, accrued interest | $ 3,540 | $ 1,727 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 153,881,933 | 129,992,796 |
Common stock, outstanding (in shares) | 153,881,933 | 129,992,796 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Rental income | $ 55,407 | $ 47,745 | $ 108,909 | $ 93,908 |
Interest and other income | 13,484 | 3,808 | 23,052 | 8,251 |
Total revenues | 68,891 | 51,553 | 131,961 | 102,159 |
Expenses: | ||||
Depreciation and amortization | 13,860 | 12,716 | 27,308 | 24,954 |
Interest expense | 8,679 | 11,040 | 16,907 | 20,867 |
Property taxes | 1,976 | 1,390 | 3,777 | 2,270 |
Impairment of real estate investments | 25,711 | 21,392 | 28,455 | 23,278 |
Property operating expenses | 255 | 658 | 915 | 1,621 |
General and administrative | 6,136 | 4,718 | 12,974 | 9,779 |
Total expenses | 56,617 | 51,914 | 90,336 | 82,769 |
Other loss: | ||||
Gain on sale of real estate, net | 21 | 2,028 | 32 | 1,958 |
Unrealized loss on other real estate related investments, net | (1,877) | (2,151) | (2,489) | (2,605) |
Total other loss | (1,856) | (123) | (2,457) | (647) |
Net income (loss) | 10,418 | (484) | 39,168 | 18,743 |
Net loss attributable to noncontrolling interests | (340) | 0 | (336) | 0 |
Net income (loss) attributable to CareTrust REIT, Inc. | $ 10,758 | $ (484) | $ 39,504 | $ 18,743 |
Earnings (loss) per common share attributable to CareTrust REIT, Inc: | ||||
Basic (in usd per share) | $ 0.07 | $ (0.01) | $ 0.28 | $ 0.19 |
Diluted (in usd per share) | $ 0.07 | $ (0.01) | $ 0.28 | $ 0.19 |
Weighted-average number of common shares: | ||||
Basic (in shares) | 144,895 | 99,117 | 138,866 | 99,090 |
Diluted (in shares) | 145,258 | 99,117 | 139,230 | 99,194 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2022 | 99,010,112 | |||||
Beginning balance at Dec. 31, 2022 | $ 849,373 | $ 849,373 | $ 990 | $ 1,245,337 | $ (396,954) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock-based compensation awards, net of shares withheld for employee taxes (in shares) | 87,978 | |||||
Vesting of stock-based compensation awards, net of shares withheld for employee taxes | (1,479) | (1,479) | $ 1 | (1,480) | ||
Amortization of stock-based compensation | 936 | 936 | 936 | |||
Common dividends | (27,738) | (27,738) | (27,738) | |||
Net income (loss) | 19,227 | 19,227 | 19,227 | |||
Ending balance (in shares) at Mar. 31, 2023 | 99,098,090 | |||||
Ending balance at Mar. 31, 2023 | 840,319 | 840,319 | $ 991 | 1,244,793 | (405,465) | 0 |
Beginning balance (in shares) at Dec. 31, 2022 | 99,010,112 | |||||
Beginning balance at Dec. 31, 2022 | 849,373 | 849,373 | $ 990 | 1,245,337 | (396,954) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 18,743 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 99,124,082 | |||||
Ending balance at Jun. 30, 2023 | 813,022 | 813,022 | $ 991 | 1,245,717 | (433,686) | 0 |
Beginning balance (in shares) at Mar. 31, 2023 | 99,098,090 | |||||
Beginning balance at Mar. 31, 2023 | 840,319 | 840,319 | $ 991 | 1,244,793 | (405,465) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of stock-based compensation awards, net of shares withheld for employee taxes (in shares) | 25,992 | |||||
Amortization of stock-based compensation | 924 | 924 | 924 | |||
Common dividends | (27,737) | (27,737) | (27,737) | |||
Net income (loss) | (484) | (484) | (484) | |||
Ending balance (in shares) at Jun. 30, 2023 | 99,124,082 | |||||
Ending balance at Jun. 30, 2023 | $ 813,022 | 813,022 | $ 991 | 1,245,717 | (433,686) | 0 |
Beginning balance (in shares) at Dec. 31, 2023 | 129,992,796 | 129,992,796 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,418,717 | 1,416,819 | $ 1,300 | 1,883,147 | (467,628) | 1,898 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net (in shares) | 11,600,000 | |||||
Issuance of common stock, net | 269,787 | 269,787 | $ 116 | 269,671 | ||
Vesting of stock-based compensation awards, net of shares withheld for employee taxes (in shares) | 119,369 | |||||
Vesting of stock-based compensation awards, net of shares withheld for employee taxes | (2,483) | (2,483) | $ 1 | (2,484) | ||
Amortization of stock-based compensation | 2,120 | 2,120 | 2,120 | |||
Common dividends | (41,192) | (41,192) | (41,192) | |||
Distributions to noncontrolling interests | (47) | (47) | ||||
Contributions from noncontrolling interests | 444 | 444 | ||||
Net income (loss) | 28,750 | 28,746 | 28,746 | 4 | ||
Ending balance (in shares) at Mar. 31, 2024 | 141,712,165 | |||||
Ending balance at Mar. 31, 2024 | $ 1,676,096 | 1,673,797 | $ 1,417 | 2,152,454 | (480,074) | 2,299 |
Beginning balance (in shares) at Dec. 31, 2023 | 129,992,796 | 129,992,796 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,418,717 | 1,416,819 | $ 1,300 | 1,883,147 | (467,628) | 1,898 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 39,168 | |||||
Ending balance (in shares) at Jun. 30, 2024 | 153,881,933 | 153,881,933 | ||||
Ending balance at Jun. 30, 2024 | $ 1,945,773 | 1,943,689 | $ 1,539 | 2,456,187 | (514,037) | 2,084 |
Beginning balance (in shares) at Mar. 31, 2024 | 141,712,165 | |||||
Beginning balance at Mar. 31, 2024 | 1,676,096 | 1,673,797 | $ 1,417 | 2,152,454 | (480,074) | 2,299 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net (in shares) | 12,145,000 | |||||
Issuance of common stock, net | 302,449 | 302,449 | $ 122 | 302,327 | ||
Vesting of stock-based compensation awards, net of shares withheld for employee taxes (in shares) | 24,768 | |||||
Amortization of stock-based compensation | 1,406 | 1,406 | 1,406 | |||
Common dividends | (44,721) | (44,721) | (44,721) | |||
Distributions to noncontrolling interests | (7) | (7) | ||||
Contributions from noncontrolling interests | 132 | 132 | ||||
Net income (loss) | $ 10,418 | 10,758 | 10,758 | (340) | ||
Ending balance (in shares) at Jun. 30, 2024 | 153,881,933 | 153,881,933 | ||||
Ending balance at Jun. 30, 2024 | $ 1,945,773 | $ 1,943,689 | $ 1,539 | $ 2,456,187 | $ (514,037) | $ 2,084 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common dividends (in usd per share) | $ 0.29 | $ 0.29 | $ 0.28 | $ 0.28 |
CONDENSED CONSOLIDATED STATEM_4
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 | $ 39,168 | $ 18,743 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including below-market ground leases) | 27,337 | 24,983 |
Amortization of deferred financing costs | 1,228 | 1,217 |
Unrealized loss on other real estate related investments, net | 2,489 | 2,605 |
Amortization of stock-based compensation | 3,526 | 1,860 |
Straight-line rental income | 14 | 14 |
Amortization of lease incentive | 4 | 0 |
Amortization of below market rent | (1,150) | 0 |
Noncash interest income | (1,813) | 184 |
Gain on sale of real estate, net | (32) | (1,958) |
Impairment of real estate investments | 28,455 | 23,278 |
Change in operating assets and liabilities: | ||
Accounts and other receivables | (719) | 14 |
Prepaid expenses and other assets, net | (983) | (330) |
Accounts payable, accrued liabilities and deferred rent liabilities | 4,271 | (3,624) |
Net cash provided by operating activities | 101,795 | 66,986 |
Cash flows from investing activities: | ||
Acquisitions of real estate, net of deposits applied | (204,554) | (172,453) |
Purchases of equipment, furniture and fixtures and improvements to real estate | (1,323) | (6,380) |
Preferred equity investments | (9,000) | 0 |
Investment in real estate related investments and other loans receivable | (244,825) | (27,262) |
Principal payments received on real estate related investments and other loans receivable | 0 | 15,287 |
Escrow deposits for potential acquisitions of real estate | (9,075) | (300) |
Net proceeds from sales of real estate | 140 | 14,464 |
Net cash used in investing activities | (468,637) | (176,644) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock, net | 572,236 | (629) |
Proceeds from the secured borrowing | 75,000 | 0 |
Borrowings under unsecured revolving credit facility | 0 | 155,000 |
Payments of deferred financing costs | (24) | (21) |
Net-settle adjustment on restricted stock | (2,483) | (1,479) |
Dividends paid on common stock | (77,723) | (55,246) |
Contributions from noncontrolling interests | 576 | 0 |
Distributions to noncontrolling interests | (54) | 0 |
Net cash provided by financing activities | 567,528 | 97,625 |
Net increase (decrease) in cash and cash equivalents | 200,686 | (12,033) |
Cash and cash equivalents as of the beginning of period | 294,448 | 13,178 |
Cash and cash equivalents as of the end of period | 495,134 | 1,145 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 15,289 | 21,000 |
Supplemental schedule of noncash investing and financing activities: | ||
Increase in dividends payable | 8,190 | 294 |
Right-of-use asset obtained in exchange for new operating lease obligation | 0 | 369 |
Transfer of pre-acquisition costs to acquired assets | 58 | 0 |
Sale of real estate settled with note receivable | $ 1,000 | $ 2,000 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Description of Business— |
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 Basis of Presentation —The accompanying condensed consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the disclosures required by GAAP for a complete set of annual audited financial statements. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. In the opinion of management, all adjustments which are of a normal and recurring nature and considered necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for the interim periods are not necessarily indicative of results for the full year. The accompanying consolidated financial statements of the Company include the accounts of CareTrust REIT, its wholly-owned subsidiaries, and variable interest entities (“VIEs”) over which the Company exercises control. All intercompany transactions and account balances within the Company have been eliminated, and net earnings are reduced by the portion of net earnings attributable to noncontrolling interests. Transfers of financial assets |
REAL ESTATE INVESTMENTS, NET
REAL ESTATE INVESTMENTS, NET | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS, NET | REAL ESTATE INVESTMENTS, NET The following table summarizes the Company’s investment in owned properties, and properties held in consolidated joint ventures, held for use as of June 30, 2024 and December 31, 2023 (dollars in thousands): June 30, 2024 December 31, 2023 Land $ 326,089 $ 279,276 Buildings and improvements 1,734,970 1,620,014 Integral equipment, furniture and fixtures 102,876 100,504 Identified intangible assets 5,283 5,283 Real estate investments 2,169,218 2,005,077 Accumulated depreciation and amortization (462,987) (437,958) Real estate investments, net $ 1,706,231 $ 1,567,119 As of June 30, 2024, all of the Company’s owned and held for investment facilities were leased to various operators under triple-net leases. During the second and third quarters of 2022, the Company entered into triple-net lease agreements for two of the Company’s facilities which are being repurposed to behavioral health facilities. All of the triple-net leases contain annual escalators based on the percentage change in the Consumer Price Index (“CPI”) (but not less than zero), some of which are subject to a cap, or fixed rent escalators. As of June 30, 2024, 20 facilities were held for sale. See Note 4, Impairment of Real Estate Investments, Assets Held for Sale and Asset Sales, for additional information. As of June 30, 2024, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements, assets held for sale and assets being repurposed, was as follows (dollars in thousands): Year Amount 2024 (six months) $ 110,578 2025 223,997 2026 224,609 2027 220,960 2028 218,885 2029 214,524 Thereafter 980,405 Total $ 2,193,958 Tenant Purchase Options Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands): Asset Type (1) Properties Lease Expiration Option Period Open Date (2) Option Type (3) Current Cash Rent (4) SNF 1 March 2029 4/1/2022 (5) A / B (7) $ 858 SNF 4 November 2034 12/1/2024 (5) A 3,988 SNF / Campus 2 October 2032 11/1/2026 (6) B 3,314 (8) SNF / Campus 1 May 2034 6/1/2027 (9) B 1,293 (10) SNF / Campus 1 May 2034 6/1/2028 (9) B 1,293 (10) (1) Excludes a purchase option on an 11 building SNF portfolio classified as held for sale as of June 30, 2024 and representing $5.1 million of current cash rent. The tenant is currently not eligible to elect the option. (2) The Company has not received notice of exercise for the option periods that are currently open. (3) Option type includes: A - Fixed base price. B - Fixed capitalization rate on lease revenue. (4) Based on annualized cash revenue for contracts in place as of June 30, 2024. (5) Option window is open until the expiration of the lease term. (6) Option window is open for six months from the option period open date. (7) Purchase option reflects two option types. (8) Purchase option provides for purchase of two of three facilities. The current cash rent shown is an average of the range of $3.2 million to $3.4 million. (9) Purchase option window is open for nine months from the option period open date. (10) Purchase option provides for purchase of one of five facilities. The current cash rent shown is an average of the range of $1.0 million to $1.6 million. If the operator exercises its option to extend the term of the master lease, beginning on June 1, 2036 and ending nine months thereafter, the operator will have a purchase option for all facilities then remaining in the master lease. Rental Income The following table summarizes components of the Company’s rental income (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, Rental Income 2024 2023 2024 2023 Contractual rent due (1) $ 54,843 $ 47,752 $ 107,777 $ 93,922 Straight-line rent (7) (7) (14) (14) Amortization of lease incentive (4) — (4) — Amortization of below-market lease intangible 575 — 1,150 — Total $ 55,407 $ 47,745 $ 108,909 $ 93,908 (1) Includes initial cash rent and tenant operating expense reimbursements, as adjusted for applicable rental escalators and rent increases due to capital expenditures funded by the Company. For tenants on a cash basis, this represents the lesser of the amount that would be recognized on a straight-line basis or cash that has been received. Tenant operating expense reimbursements for the three months ended June 30, 2024 and 2023 were $1.9 million and $1.2 million, respectively. Tenant operating expense reimbursements for the six months ended June 30, 2024 and 2023 were $3.4 million and $1.9 million, respectively. Recent Real Estate Acquisitions The following table summarizes the Company’s acquisitions for the six months ended June 30, 2024 (dollars in thousands): Type of Property Purchase Price (1) Initial Annual Cash Rent (2) Number of Properties Number of Beds/Units (3) Skilled nursing $ 119,222 $ 10,331 7 638 Multi-service campuses (4) 78,154 6,268 4 575 Assisted living (5) 11,036 1,022 1 86 Total $ 208,412 $ 17,621 12 1,299 (1) Purchase price includes capitalized acquisition costs. (2) Initial annual cash rent represents initial cash rent for the first twelve months. (3) The number of beds/units includes operating beds at the acquisition date. (4) Includes two multi-service campuses held through a joint venture. See Note 11, Variable Interest Entities , for additional information. (5) Includes one ALF held through a joint venture. See Note 11, Variable Interest Entities , for additional information. Lease Amendments and Terminations New Bayshire Lease. On April 1, 2024, a new master lease with affiliates of Bayshire, LLC (“Bayshire”) commenced to lease one SNF that was previously under a short-term master lease until Bayshire received regulatory approval. The short-term master lease was terminated. The Bayshire master lease had a term of approximately 15 years at the date of the lease, with two five-year renewal options and 3% fixed rent escalators. Initial annual cash rent under the new Bayshire master lease was $2.6 million. The Bayshire lease provides for a rent deferral of $0.4 million in the first year to be repaid in 15 installments beginning in year two. Amended Eduro Lease and Amended Ensign Lease. On March 1, 2024, operations of two SNFs in Colorado operated by affiliates of Eduro Healthcare, LLC (“Eduro”) were transferred to subsidiaries of The Ensign Group, Inc. (“Ensign”). In connection with the transfer, the Company partially terminated the Eduro master lease and amended one existing triple-net master lease with Ensign to include the two SNFs and extended the initial lease term by 15 years. The applicable Ensign master lease, as amended, had a remaining term at the date of amendment of approximately 20 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent under the applicable Ensign master lease, as amended, increased by approximately $2.1 million and annual cash rent under the Eduro master lease, as amended, decreased by the same amount. New Embassy Lease and Hillstone Lease Termination. On December 31, 2023, the Company terminated its master lease with affiliates of Hillstone Healthcare, Inc. (“Hillstone”). Effective January 1, 2024, in connection with the December 31, 2023 lease termination, one SNF was removed from the Hillstone master lease, was classified as held for sale as of March 31, 2024 and was sold during the three months ended June 30, 2024. See Note 4, Impairment of Real Estate Investments, Assets Held for Sale and Asset Sales , for additional information. In connection with the lease termination, the Company entered into a new triple-net master lease with a subsidiary of Embassy Healthcare Holdings, Inc. (“Embassy”) with respect to one multi-service campus. The Embassy lease has an initial term of approximately 10 years with two five-year renewal options and CPI-based rent escalators. Initial annual cash rent under the lease is approximately $0.6 million and the master lease provides Embassy with a partial rent abatement until required authorizations with respect to the ALF portion of the facility are obtained and occupancy levels reach a certain percentage. Noble VA Lease Termination and New Pennant Lease. Effective March 16, 2023, two ALFs in Wisconsin were removed from a master lease with affiliates of Noble VA Holdings (“Noble VA”) and the Company terminated the applicable Noble VA master lease. Annual cash rent under the applicable Noble VA master lease prior to lease termination was approximately $2.3 million. In connection with the lease termination, the Company entered into a new lease (the “New Pennant Lease”) with the Pennant Group, Inc. (“Pennant”) with respect to the two ALFs. The New Pennant Lease had an initial term at the date of the lease of approximately 15 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent under the new lease was approximately $0.8 million and the master lease provides Pennant with three months deferred rent to be repaid before the expiration or termination of the lease. |
IMPAIRMENT OF REAL ESTATE INVES
IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES | IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE AND ASSET SALES Impairment of Real Estate Investments Held for Sale During the three and six months ended June 30, 2024, the Company recognized aggregate impairment charges of $25.7 million and $28.5 million, respectively, related to properties held for sale, which is reported in impairment of real estate investments in the condensed consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recognized aggregate impairment charges of $21.4 million and $23.3 million, respectively, related to properties held for sale, which is reported in impairment of real estate investments in the condensed consolidated statements of operations. As of June 30, 2024, there were 20 facilities classified as held for sale, all of which have been marked down to fair value less estimated costs to sell. The fair values of the assets held for sale were based on estimated sales prices, which are considered to be Level 3 measurements within the fair value hierarchy. Estimated sales prices were determined using a market approach (comparable sales model), which relies on certain assumptions by management, including: (i) comparable market transactions, (ii) estimated prices per unit, and (iii) binding agreements for sales and non-binding offers to purchase from unrelated third-parties. There are inherent uncertainties in making these assumptions. For the Company’s impairment calculations during the six months ended June 30, 2024, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $11,000 to $46,000, with a weighted average price per unit of $24,000. One property, with no bed rights, was reclassified to held for sale during the three months ended March 31, 2024. The Company disposed of this facility during the three months ended June 30, 2024 and recorded a gain on sale of approximately $21,000. For the Company’s impairment calculations during the six months ended June 30, 2023, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $18,000 to $35,000, with a weighted average price per unit of $21,000. Asset Sales and Held for Sale Reclassifications The following table summarizes the Company’s dispositions for the three and six months ended June 30, 2024 and 2023 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Number of facilities 1 3 3 4 Net sales proceeds (1) $ 94 $ 13,234 $ 1,140 $ 16,464 Net carrying value 73 11,206 1,108 14,506 Net gain on sale $ 21 $ 2,028 $ 32 $ 1,958 (1) Net sales proceeds for the six months ended June 30, 2024 includes $1.0 million of seller financing in connection with the sale of one ALF in January 2024. Net sales proceeds for the three and six months ended June 30, 2023 includes $2.0 million of seller financing in connection with the sale of one ALF in June 2023. The following table summarizes the Company’s assets held for sale activity for the periods presented (dollars in thousands): Net Carrying Value Number of Facilities December 31, 2023 $ 15,011 14 Additions to assets held for sale 43,305 9 Assets sold (1,108) (3) Impairment of real estate held for sale (28,455) — June 30, 2024 $ 28,753 20 December 31, 2022 $ 12,291 5 Additions to assets held for sale 47,047 14 Assets sold (14,506) (4) Impairment of real estate held for sale (23,278) — June 30, 2023 $ 21,554 15 |
OTHER REAL ESTATE RELATED AND O
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS | OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS As of June 30, 2024 and December 31, 2023, the Company’s other real estate related investments consisted of the following (dollar amounts in thousands): Facility Count and Type As of June 30, 2024 Loans Receivable, at Fair Value: SNF Campus ALF ILF Principal Balance as of June 30, 2024 Fair Value as of June 30, 2024 Fair Value as of December 31, 2023 Weighted Average Contractual Interest Rate (1), (2) Maturity Date Mortgage secured loans receivable 38 4 4 1 $ 357,872 $ 348,552 $ 156,769 9.1 % 5/31/2025 - 6/29/2033 Mezzanine loans receivable 40 3 2 — 77,165 74,099 21,799 12.8 % 7/25/2027 - 6/30/2032 $ 435,037 $ 422,651 $ 178,568 (1) Rates are net of subservicing fee, if applicable. (2) Three mortgage secured loans receivable and two mezzanine loans receivable use term secured overnight financing rate (“SOFR”), which are subject to a floor for certain of the loans. Term SOFR used as of June 30, 2024 was 5.34%. Facility Count and Type As of June 30, 2024 Other Investments: SNF Campus ALF ILF Principal Balance as of June 30, 2024 Book Value as of June 30, 2024 Book Value as of December 31, 2023 Weighted Average Contractual Interest Rate Maturity Date Preferred equity 8 3 — — 10,782 10,881 1,801 11.7 % N/A Total $ 10,782 $ 10,881 $ 1,801 The following table summarizes the Company’s other real estate related investments activity for the six months ended June 30, 2024 and 2023 (dollars in thousands): Six Months Ended June 30, 2024 2023 Origination of other real estate related investments $ 253,840 $ 28,243 Accrued interest, net 1,813 (184) Unrealized loss on other real estate related investments, net (2,489) (2,605) Prepayments of other real estate related investments — (15,000) Net change in other real estate related investments $ 253,164 $ 10,454 2024 Other Real Estate Related Investment Transactions On January 1, 2024, the Company closed on the sale of one ALF. In connection with the sale, the Company provided affiliates of the purchaser of the property with a $1.0 million mortgage loan which bears interest at a rate of 9.0%. The mortgage loan is s ecured by the ALF and is set to mature on January 1, 2027. The mortgage loan may be prepaid in whole before the maturity date. The Company elected the fair value option for the mortgage loan. On January 25, 2024, the Company extended a $9.8 million mezzanine loan for a portfolio of ten SNFs located in Missouri secured by a pledge of membership interests in an up-tier holding company of the borrower group. The Company participated in the loan alongside a co-lender pursuant to a participation agreement entered into between the Company and the co-lender. Pursuant to such agreement, the Company provided $9.8 million in mezzanine loan proceeds and the co-lender provided the remaining $10.2 million of loan proceeds. As a participant in the loan, and subject to limited exceptions, the Company is entitled to receive its proportionate share of loan payments made by the borrower with each co-lender’s proportionate share being given equal weight. The loan bears interest at term SOFR plus 8.75%, with a term SOFR floor of 6%, payable monthly and net of a 0.75% subservicing fee. Commencing on February 1, 2026, monthly principal payments shall be due. The mezzanine loan is set to mature on July 25, 2027, with two six-month extension options and may (subject to certain restrictions) be prepaid in whole before the maturity date for an exit fee ranging from 1% to 2% of the loan plus unpaid interest payments equal to 24 months (less the amount of monthly interest payments made by the borrower through the date of prepayment). The Company elected the fair value option for the mezzanine loan. On February 1, 2024, the Company extended a $7.4 million mezzanine loan for one SNF located in California secured by a pledge of membership interests in an up-tier holding company of the borrower group. The loan bears interest at 11.5%, payable monthly. The mezzanine loan is set to mature on January 31, 2029, and may not (subject to certain limited exceptions) be prepaid prior to the date that is 18 months following the loan closing. The Company elected the fair value option for the mezzanine loan. On February 2, 2024, the Company extended a $35.0 million mezzanine loan for a portfolio of 15 SNFs located in Virginia secured by a pledge of membership interests in an up-tier holding company of the borrower group. The Company participated in the loan alongside a co-lender pursuant to a participation agreement entered into between the Company and the co-lender. Pursuant to such agreement, the Company provided $35.0 million in mezzanine loan proceeds and the co-lender provided the remaining $50.0 million of loan proceeds. As a participant in the loan, and subject to limited exceptions, the Company is entitled to receive its proportionate share of loan payments made by the borrower with each co-lender’s proportionate share being given equal weight. The loan bears interest at term SOFR plus 8.75%, with a term SOFR floor of 6%, payable monthly and net of a 0.75% subservicing fee. Commencing on February 2, 2026, monthly principal payments shall be due. The mezzanine loan is set to mature on August 1, 2027, with two six-month extension options and may (subject to certain restrictions) be prepaid in whole before the maturity date for an exit fee ranging from 1% to 2% of the loan plus unpaid interest payments equal to 18 months (less the amount of monthly interest payments made by the borrower through the date of prepayment). The Company elected the fair value option for the mezzanine loan. On May 1, 2024, the Company extended a $26.7 million mortgage loan to a skilled nursing real estate owner. The mortgage loan is secured by two SNFs and bears interest at a rate of 9.1%, payable monthly. The mortgage loan is set to mature on May 1, 2031 and includes a one year extension option. The mortgage loan may not be prepaid prior to July 31, 2029, subject to certain limited exceptions. The mortgage loan includes a purchase option with an exercise window that opens during the initial 90-day period of each of the 4th, 5th and 6th loan years, with the purchase option price for the facilities being calculated by dividing the amount of the then annual base rent by an agreed upon lease yield. The Company elected the fair value option for the mortgage loan. On June 3, 2024, the Company extended a $165.0 million mortgage loan to a regional health care real estate owner. The mortgage loan is secured by eight SNFs located in North Carolina and bears interest at a rate of SOFR plus 4.25%, with a term SOFR floor of 5.15%, payable monthly and net of a 0.25% subservicing fee. Commencing on June 1, 2027, monthly principal payments will be due. The mortgage loan is set to mature on June 1, 2029, and includes two six-month extension options. The mortgage loan may not be prepaid prior to June 1, 2026, subject to certain limited exceptions. The Company elected the fair value option for the mortgage loan. Concurrently with closing, KeyBank National Association purchased a $75.0 million participation in the mortgage loan from the Company. See Note 7, Debt , for additional information. In addition, on June 3, 2024, the Company funded a $9.0 million preferred equity investment in an uptier parent entity of the borrower under the $165.0 million mortgage loan described above. The Company's initial contractual yield on its preferred equity investment is 11%. Prepayment of the preferred equity investment is restricted, subject to certain carveouts, prior to the senior mortgage loan being paid off in full. Other Loans Receivables As of June 30, 2024 and December 31, 2023, the Company’s other loans receivable, included in prepaid expenses and other assets, net on the Company’s condensed consolidated balance sheets, consisted of the following (dollars in thousands): As of June 30, 2024 Investment Principal Balance as of June 30, 2024 Book Value as of June 30, 2024 Book Value as of December 31, 2023 Weighted Average Contractual Interest Rate Maturity Date Other loans receivable $ 18,079 $ 18,145 $ 17,156 8.8 % 6/30/2024 - 4/26/2027 Expected credit loss — (2,094) (2,094) Total $ 18,079 $ 16,051 $ 15,062 The following table summarizes the Company’s other loans receivable activity for the six months ended June 30, 2024 and 2023 (dollars in thousands): Six Months Ended June 30, 2024 2023 Origination of loans receivable $ 985 $ 1,019 Principal payments — (287) Accrued interest, net 4 1 Net change in other loans receivable $ 989 $ 733 Expected credit losses and recoveries are recorded in provision for loan losses, net in the condensed consolidated statements of operations. During both the six months ended June 30, 2024 and 2023, the Company had no additional expected credit loss and did not consider any loan receivable investments to be impaired. The following table summarizes the interest and other income recognized from the Company’s loans receivable and other investments during the three and six months ended June 30, 2024 and 2023 (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, Investment 2024 2023 2024 2023 Mortgage secured loans receivable $ 5,544 $ 2,762 $ 9,316 $ 5,466 Mezzanine loans receivable 2,494 695 4,389 2,278 Preferred equity investment 144 — 212 — Other loans receivable 338 160 669 316 Other (1) 4,964 191 8,466 191 Total $ 13,484 $ 3,808 $ 23,052 $ 8,251 (1) Other income is comprised of interest income on money market funds. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. GAAP guidance defines three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 – Unobservable inputs reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and, depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. Changes in the type of inputs may result in a reclassification for certain assets. The Company does not expect that changes in classifications between levels will be frequent. Items Measured at Fair Value on a Recurring Basis The following table presents information about the Company’s assets measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those instruments fall (dollars in thousands): Level 1 Level 2 Level 3 Balance as of June 30, 2024 Assets: Mortgage secured loans receivable $ — $ — $ 348,552 $ 348,552 Mezzanine loans receivable — — 74,099 74,099 Total $ — $ — $ 422,651 $ 422,651 Level 1 Level 2 Level 3 Balance as of December 31, 2023 Assets: Mortgage secured loans receivable $ — $ — $ 156,769 $ 156,769 Mezzanine loans receivable — — 21,799 21,799 Total $ — $ — $ 178,568 $ 178,568 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs (dollars in thousands): Investments in Real Estate Secured Loans Investments in Mezzanine Loans Balance at December 31, 2023 $ 156,769 $ 21,799 Loan originations 192,675 52,165 Accrued interest, net 1,147 585 Unrealized loss on other real estate related investments, net (2,039) (450) Balance as of June 30, 2024 $ 348,552 $ 74,099 Real estate secured and mezzanine loans receivable: The fair values of the secured and mezzanine loans receivables were estimated using an internal valuation model that considered the expected future cash flows of the investment, the underlying collateral value, market interest rates and other credit enhancements. As such, the Company classifies each instrument as Level 3 due to the significant unobservable inputs used in determining market interest rates for investments with similar terms. During the three and six months ended June 30, 2024, the Company recorded an unrealized loss of $2.4 million and $3.2 million, respectively, on the Company’s secured and mezzanine loans receivable due to rising interest rates, partially offset by unrealized gains of $0.5 million and $0.7 million, respectively, due to increases in expected cash flows on floating rate loans. Future changes in market interest rates or collateral value could materially impact the estimated discounted cash flows that are used to determine the fair value of the secured and mezzanine loans receivable. As of June 30, 2024 and December 31, 2023, the Company did not have any loans that were 90 days or more past due. The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in secured and mezzanine loans receivables as of June 30, 2024: Type Book Value as of June 30, 2024 Valuation Technique Unobservable Inputs Range Mortgage secured loans receivable $ 348,552 Discounted cash flow Discount Rate 9% - 16% Mezzanine loans receivable 74,099 Discounted cash flow Discount Rate 12% - 16% For the six months ended June 30, 2024, there were no classification changes in assets and liabilities with Level 3 inputs in the fair value hierarchy. Items Disclosed at Fair Value Considerable judgment is necessary to estimate the fair value disclosure of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the face value, carrying amount and fair value of the Company’s preferred equity investments and the Notes (as defined in Note 7, Debt, below) as of June 30, 2024 and December 31, 2023 is as follows (dollars in thousands): June 30, 2024 December 31, 2023 Level Face Carrying Fair Face Carrying Fair Financial assets: Preferred equity investments 3 $ 10,782 $ 10,881 $ 10,881 $ 1,782 $ 1,801 $ 1,801 Financial liabilities: Senior unsecured notes payable 2 $ 400,000 $ 396,483 $ 367,840 $ 400,000 $ 396,039 $ 362,500 Cash and cash equivalents, accounts and other receivables, accounts payable, and accrued liabilities: The carrying values for these instruments approximate their fair values due to the short-term nature of these instruments. Preferred equity investments: The fair value of the preferred equity investments was estimated using an internal valuation model that considered the expected future cash flows of the investment, the underlying collateral value, market interest rates and other credit enhancements. The Company utilized discount rates of 11% to 15% in its fair value calculation. As such, the Company classifies these instruments as Level 3. Senior unsecured notes payable: The fair value of the Notes was determined using third-party quotes derived from orderly trades. Unsecured revolving credit facility and senior unsecured term loan: The fair values approximate their carrying values as the interest rates are variable and approximate prevailing market interest rates and spreads for similar debt arrangements. Secured borrowing: The fair value approximates the carrying value as the interest rates are variable and approximate prevailing market interest rates and spreads for similar debt arrangements. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes the balance of the Company’s indebtedness as of June 30, 2024 and December 31, 2023 (dollars in thousands): June 30, 2024 December 31, 2023 Principal Amount Deferred Loan Fees Carrying Amount Principal Amount Deferred Loan Fees Carrying Amount Senior unsecured notes payable $ 400,000 $ (3,517) $ 396,483 $ 400,000 $ (3,961) $ 396,039 Senior unsecured term loan 200,000 (335) 199,665 200,000 (441) 199,559 Unsecured revolving credit facility (1) — — — — — — Secured borrowing (2) 75,000 — 75,000 — — — $ 675,000 $ (3,852) $ 671,148 $ 600,000 $ (4,402) $ 595,598 (1) Deferred financing fees are included in deferred financing costs, net on the balance sheet, and not reflected as a reduction to the unsecured revolving credit facility. (2) See Note 5, Other Real Estate Related and Other Investments , for more information on the secured borrowing. Senior Unsecured Notes Payable 2028 Senior Notes. On June 17, 2021, the Company’s wholly owned subsidiary, CTR Partnership, L.P. (the “Operating Partnership”), and its wholly owned subsidiary, CareTrust Capital Corp. (together with the Operating Partnership, the “Issuers”), completed a private offering of $400.0 million aggregate principal amount of 3.875% Senior Notes due 2028 (the “Notes”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended. The Notes were issued at par, resulting in gross proceeds of $400.0 million and net proceeds of approximately $393.8 million after deducting underwriting fees and other offering expenses. The Notes mature on June 30, 2028. The Notes accrue interest at a rate of 3.875% per annum payable semiannually in arrears on June 30 and December 30 of each year, commencing on December 30, 2021. The Issuers may redeem some or all of the Notes at any time prior to March 30, 2028 at a price equal to 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest on the Notes, if any, to, but not including, the redemption date, plus a “make-whole” premium. At any time on or after March 30, 2028, the Issuers may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed plus accrued interest on the Notes, if any, to, but not including, the redemption date. If certain changes of control of the Company occur, the Issuers will be required to make an offer to holders of the Notes to repurchase their Notes at a price of 101% of their principal amount plus accrued and unpaid interest, if any, to, but not including, the repurchase date. The obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by the Company and all of CareTrust’s existing and future subsidiaries (other than the Issuers) that guarantee obligations under the Amended Credit Facility (as defined below); provided, however, that such guarantees are subject to automatic release under certain customary circumstances. The indenture governing the Notes contains customary covenants such as limiting the ability of the Company and its restricted subsidiaries to: incur or guarantee additional indebtedness; incur or guarantee secured indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock; make certain investments or other restricted payments; sell assets; enter into transactions with affiliates; merge or consolidate or sell all or substantially all of their assets; and create restrictions on the ability of the Issuers and their restricted subsidiaries to pay dividends or other amounts to the Issuers. The indenture governing the Notes also requires the Company and its restricted subsidiaries to maintain a specified ratio of unencumbered assets to unsecured indebtedness. These covenants are subject to a number of important and significant limitations, qualifications and exceptions. The indenture governing the Notes also contains customary events of default. As of June 30, 2024, the Company was in compliance with all applicable financial covenants under the indenture governing the Notes. Unsecured Revolving Credit Facility and Term Loan On December 16, 2022, the Operating Partnership, as the borrower, the Company, as guarantor, CareTrust GP, LLC, and certain of the Operating Partnership’s wholly owned subsidiaries, entered into a second amended and restated credit and guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender (as amended from time to time, the “Second Amended Credit Agreement”). The Second Amended Credit Agreement, which amends and restates the Company’s amended and restated credit and guaranty agreement, dated as of February 8, 2019 (as amended, the “Prior Credit Agreement”) provides for: (i) an unsecured revolving credit facility (the “Revolving Facility”) with revolving commitments in an aggregate principal amount of $600.0 million, including a letter of credit subfacility for 10% of the then available revolving commitments and a swingline loan subfacility for 10% of the then available revolving commitments and (ii) the continuation of the unsecured term loan credit facility which was previously extended under the Prior Credit Agreement (the “Term Loan” and together with the Revolving Facility, the “Second Amended Credit Facility”) in an aggregate principal amount of $200.0 million. Future borrowings under the Second Amended Credit Facility will be used for working capital purposes, for capital expenditures, to fund acquisitions and for general corporate purposes. On October 10, 2023, the Operating Partnership, the Company, CareTrust GP, LLC, certain of the Operating Partnership’s wholly owned subsidiaries and KeyBank National Association entered into the First Amendment to the Second Amended Credit Agreement (the “First Amendment”). The First Amendment restates the definition of Consolidated Total Asset Value to include net proceeds from at-the-market forward commitments executed but not yet closed as of the relevant date as if such proceeds had actually been received. The interest rates applicable to loans under the Revolving Facility are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.10% to 0.55% per annum or Adjusted Term SOFR or Adjusted Daily Simple SOFR (each as defined in the Second Amended Credit Agreement) plus a margin ranging from 1.10% to 1.55% per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt). The interest rates applicable to loans under the Term Loan are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.50% to 1.20% per annum or Adjusted Term SOFR or Adjusted Daily Simple SOFR plus a margin ranging from 1.50% to 2.20% per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt). In addition, the Operating Partnership will pay a facility fee on the revolving commitments under the Revolving Facility ranging from 0.15% to 0.35% per annum, based on the debt to asset value ratio of the Company and its consolidated subsidiaries (unless the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt and the Operating Partnership elects to decrease the applicable margin as described above, in which case the Operating Partnership will pay a facility fee on the revolving commitments ranging from 0.125% to 0.30% per annum based on the credit ratings of the Company’s senior long-term unsecured debt). As of June 30, 2024, the Operating Partnership had $200.0 million of borrowings outstanding under the Term Loan and no borrowings outstanding under the Revolving Facility. The Revolving Facility has a maturity date of February 9, 2027, and includes, at the sole discretion of the Operating Partnership, two six-month extension options. The Term Loan has a maturity date of February 8, 2026. The Second Amended Credit Facility is guaranteed, jointly and severally, by the Company and its wholly owned subsidiaries that are party to the Second Amended Credit Agreement (other than the Operating Partnership). The Second Amended Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend organizational documents and pay certain dividends and other restricted payments. The Second Amended Credit Agreement requires the Company to comply with financial maintenance covenants to be tested quarterly, consisting of a maximum debt to asset value ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, a maximum cash distributions to operating income ratio, a maximum secured debt to asset value ratio, a maximum secured recourse debt to asset value ratio, a maximum unsecured debt to unencumbered properties asset value ratio, a minimum unsecured interest coverage ratio and a minimum rent coverage ratio. The Second Amended Credit Agreement also contains certain customary events of default, including the failure to make timely payments under the Second Amended Credit Facility or other material indebtedness, the failure to satisfy certain covenants (including the financial maintenance covenants), the occurrence of change of control and specified events of bankruptcy and insolvency. As of June 30, 2024, the Company was in compliance with all applicable financial covenants under the Second Amended Credit Agreement. Secured Borrowing On June 3, 2024, KeyBank National Association purchased a $75.0 million undivided participation interest in a $165.0 million mortgage loan from the Company (see Note 5, Other Real Estate Related and Other Investments , for additional information), which bears interest at a rate of SOFR, with a term SOFR floor of 3.00%, plus 2.5% or 2.25%, depending on the debt yield of the loan, and payable monthly. As the transaction did not qualify as a sale in accordance with GAAP, the Company recorded the participation interest as a secured borrowing in the amount of $75.0 million in the condensed consolidated balance sheet. The participating interest may be prepaid in whole before the maturity date for an exit fee of up to 0.50% of the loan plus unpaid interest . The participation interest provides for a put option, subject to certain restrictions, and a call option for the then-outstanding loan amount plus accrued and unpaid interest. As of June 30, 2024, the interest rate in effect for the secured borrowing was 7.83%. On July 30, 2024, the Company exercised the call option on the $75.0 million secured borrowing. See Note 14, Subsequent Events , for additional information. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock At-The-Market Offering —On May 6, 2024, the Company entered into a new equity distribution agreement to issue and sell, from time to time, up to $500.0 million in aggregate offering price of its common stock through an “at-the-market” equity offering program (the “New ATM Program”) and terminated its previous $500.0 million “at-the-market” equity offering program (the “Previous ATM Program” and together with the New ATM Program, the “ATM Program”). In addition to the issuance and sale of shares of its common stock, the ATM Program also provides for the ability to enter into one or more forward sales agreements (each, an “ATM forward contract”) with sales agents for the sale of the Company’s shares of common stock under the ATM Program. In the event the Company enters into an ATM forward contract to sell shares of common stock pursuant to the ATM Program, the Company would expect to fully physically settle forward equity sales by delivery of shares of common stock to the forward purchaser and receive cash proceeds upon one or more settlement dates, which are typically a one-year term, at the Company’s discretion, prior to the final settlement date, at which time the Company would expect to receive aggregate net cash proceeds at settlement equal to the number of shares sold on a forward basis multiplied by the relevant forward price per share. The weighted average forward sale price that the Company would expect to receive upon physical settlement would be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends through the settlement. The following table summarizes the ATM Program activity for the three and six months ended June 30, 2024 (in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2024 Number of shares 12,145 23,745 Average sales price per share $ 25.24 $ 24.42 Gross proceeds (1) $ 306,534 $ 579,767 (1) Total gross proceeds is before $3.8 million and $7.2 million of commissions paid to the sales agents during the three and six months ended June 30, 2024, respectively, under the ATM Program. During the three and six months ended June 30, 2023, the Company executed forward equity sales under the ATM Program with a financial institution acting as a forward purchaser to sell 6,736,089 shares of common stock at a weighted average sales price of $19.71 per share before commissions and offering expenses. The Company did not receive any proceeds from the sales of its shares of common stock by the forward sellers. As of June 30, 2023, the Company had not settled any portion of these forward equity sales. No forward equity sales were executed or settled under the ATM Program during the three and six months ended June 30, 2024, and there were no outstanding ATM forward contracts that had not settled as of June 30, 2024. As of June 30, 2024, the Company had $193.5 million available for future issuances under the New ATM Program. Dividends on Common Stock —The following table summarizes the cash dividends per share of common stock declared by the Company’s board of directors for the first six months of 2024 (dollars in thousands, except per share amounts): For the Three Months Ended March 31, 2024 June 30, 2024 Dividends declared per share $ 0.29 $ 0.29 Dividends payment date April 15, 2024 July 15, 2024 Dividends payable as of record date $ 41,192 $ 44,721 Dividends record date March 28, 2024 June 28, 2024 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION All stock-based awards are subject to the terms of the CareTrust REIT, Inc. and CTR Partnership, L.P. Incentive Award Plan (the “Plan”). The Plan provides for the granting of stock-based compensation, including stock options, restricted stock, performance awards, restricted stock units, relative total stockholder return based stock awards and other incentive awards to officers, employees and directors in connection with their employment with or services provided to the Company. Under the Plan, 5,000,000 shares have been authorized for awards. Under the Plan, restricted stock awards (“RSAs”) vest in equal annual installments over a three year period for the RSAs granted after 2020 and a four year period for the RSAs granted in 2020. RSAs granted to non-employee members of the board of directors (“Board Awards”) vest in full on the earlier to occur of the Company’s next Annual Meeting of Stockholders or one year. Performance stock awards (“PSAs”) granted were subject to both time and performance based conditions and vested over a one one The following table summarizes the status of the restricted stock award and performance award activity for the six months ended June 30, 2024: Shares Weighted Average Share Price Unvested balance at December 31, 2023 510,596 $ 21.01 Granted: Board Awards 21,712 23.95 Vested (169,811) 20.67 Forfeited (35,161) 20.48 Unvested balance at June 30, 2024 327,336 $ 21.43 As of June 30, 2024, the weighted-average remaining vesting period of such awards w as 1.7 years. The following table summarizes the stock-based compensation expense recognized for the periods presented (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Stock-based compensation expense $ 1,406 $ 924 $ 3,526 $ 1,860 For the three and six months ended June 30, 2023, approximately $0.6 million of previously recognized stock-based compensation expense related to the PSAs was reversed as the awards were not expected to meet the performance conditions. For the six months ended June 30, 2023, approximately $0.9 million of previously recognized stock-based compensation expense was reversed due to forfeitures of stock awards. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE The following table presents the calculation of basic and diluted earnings (loss) per common share attributable to CareTrust REIT, Inc. (“EPS”) for the Company’s common stock for the three and six months ended June 30, 2024 and 2023, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income (loss) attributable to CareTrust REIT, Inc. $ 10,758 $ (484) $ 39,504 $ 18,743 Less: Net income allocated to participating securities (95) (89) (191) (178) Numerator for basic and diluted earnings available to common stockholders $ 10,663 $ (573) $ 39,313 $ 18,565 Denominator: Weighted-average basic common shares outstanding 144,895 99,117 138,866 99,090 Dilutive potential common shares - TSR Units 363 — 364 90 Dilutive potential common shares - forward equity agreements — — — 14 Weighted-average diluted common shares outstanding 145,258 99,117 139,230 99,194 Earnings (loss) per common share attributable to CareTrust REIT, Inc., basic $ 0.07 $ (0.01) $ 0.28 $ 0.19 Earnings (loss) per common share attributable to CareTrust REIT, Inc., diluted $ 0.07 $ (0.01) $ 0.28 $ 0.19 Antidilutive unvested RSAs, TSR Units and PSAs excluded from the computation (1) 327 500 327 316 (1) For the three and six months ended June 30, 2024, RSAs are antidilutive. For the three months ended June 30, 2023, RSAs and TSR Units are antidilutive. For the six months ended June 30, 2023, certain TSR Units and RSAs are antidilutive. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Noncontrolling Interests —The Company has entered into multiple ventures with unrelated third parties to own real estate and has concluded that such ventures are VIEs. As the Company exercises power over and receives economic benefits from the VIEs, the Company is considered the primary beneficiary and consolidates the VIEs. Pursuant to the Company’s joint ventures (“JVs”), the Company typically contributes 97.5% of the JV’s total investment amount and the Company receives 100% of the preferred equity interest in the JV in exchange for 95% of that total investment and a 50% common equity interest in the JV in exchange for the remaining 2.5% of that investment. The JV partner contributes the remaining 2.5% of the JV’s total investment amount in exchange for a 50% common ownership interest in the JV. As of June 30, 2024, the Company held three SNFs, two multi-service campuses and one ALF in multiple VIEs. On January 3, 2024, the Company entered into a JV, pursuant to which the Company contributed $10.8 million into the JV that purchased one ALF located in California for $11.0 million. The JV partner contributed the remaining $0.2 million of the total investment. On April 1, 2024, the Company entered into a JV, pursuant to which the Company contributed $28.1 million into the JV that purchased two multi-service campuses located in California for $28.8 million. The JV partner contributed the remaining $0.7 million of the total investment. Total assets and total liabilities include VIE assets and liabilities as follows (dollars in thousands): June 30, 2024 December 31, 2023 Assets: Real estate investments, net $ 106,439 $ 68,106 Cash and cash equivalents 1,013 — Accounts and other receivables 246 — Prepaid and other assets — 2,800 Total assets 107,698 70,906 Liabilities: Accounts payable, accrued liabilities and deferred rent liabilities 6,775 7,239 Total liabilities $ 6,775 $ 7,239 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company and its subsidiaries are and may become from time to time a party to various claims and lawsuits arising in the ordinary course of business, which are not individually or in the aggregate anticipated to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Claims and lawsuits may include matters involving general or professional liability asserted against the Company’s tenants, which are the responsibility of the Company’s tenants and for which the Company is entitled to be indemnified by its tenants under the insurance and indemnification provisions in the applicable leases. In the normal course of business, the Company enters into various commitments, typically consisting of funding of capital expenditures and short-term working capital loans to existing tenants while they await licensure and certification or are conducting turnaround work in one or more of the Company’s properties. Capital expenditures for each property leased under the Company’s triple-net leases are generally the responsibility of the tenant, except for the facilities leased under certain master lease agreements, with subsidiaries of Ensign and Pennant, under which the tenant will have an option to require the Company to finance certain capital expenditures up to an aggregate of 20% of the Company’s initial investment in such property, subject to a corresponding rent increase at the time of funding. For the Company’s other triple-net master leases, the tenants also have the option to request capital expenditure funding that would generally be subject to a corresponding rent increase at the time of funding, which are subject to tenant compliance with the conditions to the Company’s approval and funding of their requests. The Company has also provided select tenants with strategic capital for facility upkeep and modernization. The Company’s Tenant Code of Conduct and Corporate Responsibility policy (the “Tenant ESG Program”) provides eligible triple-net tenants of the Company with monetary inducements to make sustainable improvements to the Company’s properties. Incentive options include a wide variety of opportunities for tenants to upgrade everything from energy and environmental systems to water-saving landscaping and more. The Company’s board of directors has authorized annual allocations of up to $500,000 to fund the Tenant ESG Program. The table below summarizes the Company’s existing, known commitments and contingencies as of June 30, 2024 (in thousands): Remaining Commitment Capital expenditures (1) $ 14,302 Mortgage loans (2) 4,700 Other loans receivable (3) 415 $ 19,417 (1) As of June 30, 2024, the Company had committed to fund expansions, construction, capital improvements and ESG incentives at certain triple-net leased facilities totaling $14.3 million, of which $6.5 million is subject to rent increase at the time of funding. (2) One mortgage loan includes an earnout advance upon satisfaction of certain conditions. (3) Represents working capital loan commitments. |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISK | CONCENTRATION OF RISK Concentrations of credit risk arise when one or more tenants, operators, or obligors related to the Company’s investments are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. Major operator concentration – The Company has operators from which it derived 10% or more of its revenue for the three and six months ended June 30, 2024 and 2023. The following table sets forth information regarding the Company’s major operators as of June 30, 2024 and 2023: Number of Facilities Number of Beds/Units Percentage of Total Revenue Operator SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended Six Months Ended June 30, 2024 (1) Ensign (3) 87 8 7 9,290 997 661 29 % 29 % Priority Management Group 13 2 — 1,742 402 — 13 % 13 % June 30, 2023 (2) Ensign (3) 83 8 7 8,741 997 661 36 % 36 % Priority Management Group 13 2 — 1,742 402 — 16 % 16 % (1) The Company’s rental income and interest income on other real estate related investments, exclusive of operating expense reimbursements and adjustments for collectibility. (2) The Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility. (3) Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at http://www.sec.gov. The Company has not verified this information through an independent investigation or otherwise. Major geographic concentration – The following table provides information regarding the Company’s concentrations with respect to certain states, from which the Company derived 10% or more of its revenue for the three and six months ended June 30, 2024 and 2023: Number of Facilities Number of Beds/Units Percentage of Total Revenue State SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended Six Months Ended June 30, 2024 (1) CA 42 12 9 5,000 2,008 734 30 % 30 % TX 41 4 2 5,193 630 212 20 % 20 % June 30, 2023 (2) CA 29 9 5 3,307 1,527 437 28 % 28 % TX 40 3 2 5,126 536 212 23 % 23 % (1) Based on the Company’s rental income and interest income on other real estate related investments, exclusive of operating expense reimbursements and adjustments for collectibility. (2) Based on the Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluates subsequent events in accordance with ASC 855, Subsequent Events . The Company evaluates subsequent events up until the date the condensed consolidated financial statements are issued. Recent Investments On August 1, 2024, the Company extended a $260.0 million mortgage loan to a skilled nursing real estate owner. The loan is secured by a first priority mortgage lien on a real estate portfolio of 37 SNFs, ALFs and multi-service campuses located in various states and bears interest at a fixed rate of 8.40%, payable monthly. The mortgage loan is set to mature on August 1, 2029 and has a 24-month lockout period on prepayment subject to certain exceptions. The mortgage loan may otherwise be prepaid in part or in whole after the 24-month lockout period with agreed upon exit fees, as applicable. In addition, on August 1, 2024, the Company funded a $43.0 million preferred equity investment in an uptier holding company of the 37-property skilled nursing and assisted living portfolio. The Company's initial contractual yield on its preferred equity investment is 11%. Secured Borrowing On July 30, 2024, the Company exercised the call option on the $75.0 million secured borrowing at a call purchase price equal to the principal amount plus accrued and unpaid interest and a prepayment penalty of $0.4 million. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The accompanying condensed consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the disclosures required by GAAP for a complete set of annual audited financial statements. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. In the opinion of management, all adjustments which are of a normal and recurring nature and considered necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for the interim periods are not necessarily indicative of results for the full year. The accompanying consolidated financial statements of the Company include the accounts of CareTrust REIT, its wholly-owned subsidiaries, and variable interest entities (“VIEs”) over which the Company exercises control. All intercompany transactions and account balances within the Company have been eliminated, and net earnings are reduced by the portion of net earnings attributable to noncontrolling interests. |
Transfers of Financial Assets | Transfers of financial assets |
Fair Value Measurements | The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. GAAP guidance defines three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 – Unobservable inputs reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and, depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. Changes in the type of inputs may result in a reclassification for certain assets. The Company does not expect that changes in classifications between levels will be frequent. |
REAL ESTATE INVESTMENTS, NET (T
REAL ESTATE INVESTMENTS, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule of Investment in Owned Properties | The following table summarizes the Company’s investment in owned properties, and properties held in consolidated joint ventures, held for use as of June 30, 2024 and December 31, 2023 (dollars in thousands): June 30, 2024 December 31, 2023 Land $ 326,089 $ 279,276 Buildings and improvements 1,734,970 1,620,014 Integral equipment, furniture and fixtures 102,876 100,504 Identified intangible assets 5,283 5,283 Real estate investments 2,169,218 2,005,077 Accumulated depreciation and amortization (462,987) (437,958) Real estate investments, net $ 1,706,231 $ 1,567,119 |
Schedule of Total Future Contractual Minimum Rental Income | As of June 30, 2024, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements, assets held for sale and assets being repurposed, was as follows (dollars in thousands): Year Amount 2024 (six months) $ 110,578 2025 223,997 2026 224,609 2027 220,960 2028 218,885 2029 214,524 Thereafter 980,405 Total $ 2,193,958 |
Schedule of Tenant Purchase Options | Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands): Asset Type (1) Properties Lease Expiration Option Period Open Date (2) Option Type (3) Current Cash Rent (4) SNF 1 March 2029 4/1/2022 (5) A / B (7) $ 858 SNF 4 November 2034 12/1/2024 (5) A 3,988 SNF / Campus 2 October 2032 11/1/2026 (6) B 3,314 (8) SNF / Campus 1 May 2034 6/1/2027 (9) B 1,293 (10) SNF / Campus 1 May 2034 6/1/2028 (9) B 1,293 (10) (1) Excludes a purchase option on an 11 building SNF portfolio classified as held for sale as of June 30, 2024 and representing $5.1 million of current cash rent. The tenant is currently not eligible to elect the option. (2) The Company has not received notice of exercise for the option periods that are currently open. (3) Option type includes: A - Fixed base price. B - Fixed capitalization rate on lease revenue. (4) Based on annualized cash revenue for contracts in place as of June 30, 2024. (5) Option window is open until the expiration of the lease term. (6) Option window is open for six months from the option period open date. (7) Purchase option reflects two option types. (8) Purchase option provides for purchase of two of three facilities. The current cash rent shown is an average of the range of $3.2 million to $3.4 million. (9) Purchase option window is open for nine months from the option period open date. |
Schedule of Rental Income | The following table summarizes components of the Company’s rental income (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, Rental Income 2024 2023 2024 2023 Contractual rent due (1) $ 54,843 $ 47,752 $ 107,777 $ 93,922 Straight-line rent (7) (7) (14) (14) Amortization of lease incentive (4) — (4) — Amortization of below-market lease intangible 575 — 1,150 — Total $ 55,407 $ 47,745 $ 108,909 $ 93,908 |
Schedule of Recent Real Estate Acquisitions | The following table summarizes the Company’s acquisitions for the six months ended June 30, 2024 (dollars in thousands): Type of Property Purchase Price (1) Initial Annual Cash Rent (2) Number of Properties Number of Beds/Units (3) Skilled nursing $ 119,222 $ 10,331 7 638 Multi-service campuses (4) 78,154 6,268 4 575 Assisted living (5) 11,036 1,022 1 86 Total $ 208,412 $ 17,621 12 1,299 (1) Purchase price includes capitalized acquisition costs. (2) Initial annual cash rent represents initial cash rent for the first twelve months. (3) The number of beds/units includes operating beds at the acquisition date. (4) Includes two multi-service campuses held through a joint venture. See Note 11, Variable Interest Entities , for additional information. (5) Includes one ALF held through a joint venture. See Note 11, Variable Interest Entities |
IMPAIRMENT OF REAL ESTATE INV_2
IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES - (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Asset Sales and Held for Sale Reclassifications | The following table summarizes the Company’s dispositions for the three and six months ended June 30, 2024 and 2023 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Number of facilities 1 3 3 4 Net sales proceeds (1) $ 94 $ 13,234 $ 1,140 $ 16,464 Net carrying value 73 11,206 1,108 14,506 Net gain on sale $ 21 $ 2,028 $ 32 $ 1,958 (1) Net sales proceeds for the six months ended June 30, 2024 includes $1.0 million of seller financing in connection with the sale of one ALF in January 2024. Net sales proceeds for the three and six months ended June 30, 2023 includes $2.0 million of seller financing in connection with the sale of one ALF in June 2023. The following table summarizes the Company’s assets held for sale activity for the periods presented (dollars in thousands): Net Carrying Value Number of Facilities December 31, 2023 $ 15,011 14 Additions to assets held for sale 43,305 9 Assets sold (1,108) (3) Impairment of real estate held for sale (28,455) — June 30, 2024 $ 28,753 20 December 31, 2022 $ 12,291 5 Additions to assets held for sale 47,047 14 Assets sold (14,506) (4) Impairment of real estate held for sale (23,278) — June 30, 2023 $ 21,554 15 |
OTHER REAL ESTATE RELATED AND_2
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
Schedule of Other Real Estate Related Investments, at Fair Value | As of June 30, 2024 and December 31, 2023, the Company’s other real estate related investments consisted of the following (dollar amounts in thousands): Facility Count and Type As of June 30, 2024 Loans Receivable, at Fair Value: SNF Campus ALF ILF Principal Balance as of June 30, 2024 Fair Value as of June 30, 2024 Fair Value as of December 31, 2023 Weighted Average Contractual Interest Rate (1), (2) Maturity Date Mortgage secured loans receivable 38 4 4 1 $ 357,872 $ 348,552 $ 156,769 9.1 % 5/31/2025 - 6/29/2033 Mezzanine loans receivable 40 3 2 — 77,165 74,099 21,799 12.8 % 7/25/2027 - 6/30/2032 $ 435,037 $ 422,651 $ 178,568 (1) Rates are net of subservicing fee, if applicable. (2) Three mortgage secured loans receivable and two mezzanine loans receivable use term secured overnight financing rate (“SOFR”), which are subject to a floor for certain of the loans. Term SOFR used as of June 30, 2024 was 5.34%. Facility Count and Type As of June 30, 2024 Other Investments: SNF Campus ALF ILF Principal Balance as of June 30, 2024 Book Value as of June 30, 2024 Book Value as of December 31, 2023 Weighted Average Contractual Interest Rate Maturity Date Preferred equity 8 3 — — 10,782 10,881 1,801 11.7 % N/A Total $ 10,782 $ 10,881 $ 1,801 |
Schedule of Other Real Estate Related Investment Activity | The following table summarizes the Company’s other real estate related investments activity for the six months ended June 30, 2024 and 2023 (dollars in thousands): Six Months Ended June 30, 2024 2023 Origination of other real estate related investments $ 253,840 $ 28,243 Accrued interest, net 1,813 (184) Unrealized loss on other real estate related investments, net (2,489) (2,605) Prepayments of other real estate related investments — (15,000) Net change in other real estate related investments $ 253,164 $ 10,454 As of June 30, 2024 and December 31, 2023, the Company’s other loans receivable, included in prepaid expenses and other assets, net on the Company’s condensed consolidated balance sheets, consisted of the following (dollars in thousands): As of June 30, 2024 Investment Principal Balance as of June 30, 2024 Book Value as of June 30, 2024 Book Value as of December 31, 2023 Weighted Average Contractual Interest Rate Maturity Date Other loans receivable $ 18,079 $ 18,145 $ 17,156 8.8 % 6/30/2024 - 4/26/2027 Expected credit loss — (2,094) (2,094) Total $ 18,079 $ 16,051 $ 15,062 |
Schedule of Loan Receivable Activity | The following table summarizes the Company’s other loans receivable activity for the six months ended June 30, 2024 and 2023 (dollars in thousands): Six Months Ended June 30, 2024 2023 Origination of loans receivable $ 985 $ 1,019 Principal payments — (287) Accrued interest, net 4 1 Net change in other loans receivable $ 989 $ 733 |
Schedule of Interest and Other Income | The following table summarizes the interest and other income recognized from the Company’s loans receivable and other investments during the three and six months ended June 30, 2024 and 2023 (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, Investment 2024 2023 2024 2023 Mortgage secured loans receivable $ 5,544 $ 2,762 $ 9,316 $ 5,466 Mezzanine loans receivable 2,494 695 4,389 2,278 Preferred equity investment 144 — 212 — Other loans receivable 338 160 669 316 Other (1) 4,964 191 8,466 191 Total $ 13,484 $ 3,808 $ 23,052 $ 8,251 (1) Other income is comprised of interest income on money market funds. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Items Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s assets measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those instruments fall (dollars in thousands): Level 1 Level 2 Level 3 Balance as of June 30, 2024 Assets: Mortgage secured loans receivable $ — $ — $ 348,552 $ 348,552 Mezzanine loans receivable — — 74,099 74,099 Total $ — $ — $ 422,651 $ 422,651 Level 1 Level 2 Level 3 Balance as of December 31, 2023 Assets: Mortgage secured loans receivable $ — $ — $ 156,769 $ 156,769 Mezzanine loans receivable — — 21,799 21,799 Total $ — $ — $ 178,568 $ 178,568 |
Schedule of Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs (dollars in thousands): Investments in Real Estate Secured Loans Investments in Mezzanine Loans Balance at December 31, 2023 $ 156,769 $ 21,799 Loan originations 192,675 52,165 Accrued interest, net 1,147 585 Unrealized loss on other real estate related investments, net (2,039) (450) Balance as of June 30, 2024 $ 348,552 $ 74,099 |
Schedule of Quantitative Information About Unobservable Inputs Related To Level 3 Fair Value Measurements | The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in secured and mezzanine loans receivables as of June 30, 2024: Type Book Value as of June 30, 2024 Valuation Technique Unobservable Inputs Range Mortgage secured loans receivable $ 348,552 Discounted cash flow Discount Rate 9% - 16% Mezzanine loans receivable 74,099 Discounted cash flow Discount Rate 12% - 16% |
Schedule of Face Value, Carrying Amount and Fair Value of Financial Instruments | A summary of the face value, carrying amount and fair value of the Company’s preferred equity investments and the Notes (as defined in Note 7, Debt, below) as of June 30, 2024 and December 31, 2023 is as follows (dollars in thousands): June 30, 2024 December 31, 2023 Level Face Carrying Fair Face Carrying Fair Financial assets: Preferred equity investments 3 $ 10,782 $ 10,881 $ 10,881 $ 1,782 $ 1,801 $ 1,801 Financial liabilities: Senior unsecured notes payable 2 $ 400,000 $ 396,483 $ 367,840 $ 400,000 $ 396,039 $ 362,500 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | The following table summarizes the balance of the Company’s indebtedness as of June 30, 2024 and December 31, 2023 (dollars in thousands): June 30, 2024 December 31, 2023 Principal Amount Deferred Loan Fees Carrying Amount Principal Amount Deferred Loan Fees Carrying Amount Senior unsecured notes payable $ 400,000 $ (3,517) $ 396,483 $ 400,000 $ (3,961) $ 396,039 Senior unsecured term loan 200,000 (335) 199,665 200,000 (441) 199,559 Unsecured revolving credit facility (1) — — — — — — Secured borrowing (2) 75,000 — 75,000 — — — $ 675,000 $ (3,852) $ 671,148 $ 600,000 $ (4,402) $ 595,598 (1) Deferred financing fees are included in deferred financing costs, net on the balance sheet, and not reflected as a reduction to the unsecured revolving credit facility. (2) See Note 5, Other Real Estate Related and Other Investments , for more information on the secured borrowing. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of At-The-Market Offering Program | The following table summarizes the ATM Program activity for the three and six months ended June 30, 2024 (in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2024 Number of shares 12,145 23,745 Average sales price per share $ 25.24 $ 24.42 Gross proceeds (1) $ 306,534 $ 579,767 |
Schedule of Dividends on Common Stock | The following table summarizes the cash dividends per share of common stock declared by the Company’s board of directors for the first six months of 2024 (dollars in thousands, except per share amounts): For the Three Months Ended March 31, 2024 June 30, 2024 Dividends declared per share $ 0.29 $ 0.29 Dividends payment date April 15, 2024 July 15, 2024 Dividends payable as of record date $ 41,192 $ 44,721 Dividends record date March 28, 2024 June 28, 2024 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Award and Performance Award Activity | The following table summarizes the status of the restricted stock award and performance award activity for the six months ended June 30, 2024: Shares Weighted Average Share Price Unvested balance at December 31, 2023 510,596 $ 21.01 Granted: Board Awards 21,712 23.95 Vested (169,811) 20.67 Forfeited (35,161) 20.48 Unvested balance at June 30, 2024 327,336 $ 21.43 |
Schedule of Stock-Based Compensation Expense | The following table summarizes the stock-based compensation expense recognized for the periods presented (dollars in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Stock-based compensation expense $ 1,406 $ 924 $ 3,526 $ 1,860 |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Weighted-Average Common Shares Outstanding Used in Calculation of Basic EPS to Diluted EPS | The following table presents the calculation of basic and diluted earnings (loss) per common share attributable to CareTrust REIT, Inc. (“EPS”) for the Company’s common stock for the three and six months ended June 30, 2024 and 2023, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net income (loss) attributable to CareTrust REIT, Inc. $ 10,758 $ (484) $ 39,504 $ 18,743 Less: Net income allocated to participating securities (95) (89) (191) (178) Numerator for basic and diluted earnings available to common stockholders $ 10,663 $ (573) $ 39,313 $ 18,565 Denominator: Weighted-average basic common shares outstanding 144,895 99,117 138,866 99,090 Dilutive potential common shares - TSR Units 363 — 364 90 Dilutive potential common shares - forward equity agreements — — — 14 Weighted-average diluted common shares outstanding 145,258 99,117 139,230 99,194 Earnings (loss) per common share attributable to CareTrust REIT, Inc., basic $ 0.07 $ (0.01) $ 0.28 $ 0.19 Earnings (loss) per common share attributable to CareTrust REIT, Inc., diluted $ 0.07 $ (0.01) $ 0.28 $ 0.19 Antidilutive unvested RSAs, TSR Units and PSAs excluded from the computation (1) 327 500 327 316 (1) For the three and six months ended June 30, 2024, RSAs are antidilutive. For the three months ended June 30, 2023, RSAs and TSR Units are antidilutive. For the six months ended June 30, 2023, certain TSR Units and RSAs are antidilutive. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Schedule of Variable Interest Entities | Total assets and total liabilities include VIE assets and liabilities as follows (dollars in thousands): June 30, 2024 December 31, 2023 Assets: Real estate investments, net $ 106,439 $ 68,106 Cash and cash equivalents 1,013 — Accounts and other receivables 246 — Prepaid and other assets — 2,800 Total assets 107,698 70,906 Liabilities: Accounts payable, accrued liabilities and deferred rent liabilities 6,775 7,239 Total liabilities $ 6,775 $ 7,239 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The table below summarizes the Company’s existing, known commitments and contingencies as of June 30, 2024 (in thousands): Remaining Commitment Capital expenditures (1) $ 14,302 Mortgage loans (2) 4,700 Other loans receivable (3) 415 $ 19,417 (1) As of June 30, 2024, the Company had committed to fund expansions, construction, capital improvements and ESG incentives at certain triple-net leased facilities totaling $14.3 million, of which $6.5 million is subject to rent increase at the time of funding. (2) One mortgage loan includes an earnout advance upon satisfaction of certain conditions. (3) Represents working capital loan commitments. |
CONCENTRATION OF RISK (Tables)
CONCENTRATION OF RISK (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk | Major operator concentration – The Company has operators from which it derived 10% or more of its revenue for the three and six months ended June 30, 2024 and 2023. The following table sets forth information regarding the Company’s major operators as of June 30, 2024 and 2023: Number of Facilities Number of Beds/Units Percentage of Total Revenue Operator SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended Six Months Ended June 30, 2024 (1) Ensign (3) 87 8 7 9,290 997 661 29 % 29 % Priority Management Group 13 2 — 1,742 402 — 13 % 13 % June 30, 2023 (2) Ensign (3) 83 8 7 8,741 997 661 36 % 36 % Priority Management Group 13 2 — 1,742 402 — 16 % 16 % (1) The Company’s rental income and interest income on other real estate related investments, exclusive of operating expense reimbursements and adjustments for collectibility. (2) The Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility. (3) Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at http://www.sec.gov. The Company has not verified this information through an independent investigation or otherwise. Major geographic concentration – The following table provides information regarding the Company’s concentrations with respect to certain states, from which the Company derived 10% or more of its revenue for the three and six months ended June 30, 2024 and 2023: Number of Facilities Number of Beds/Units Percentage of Total Revenue State SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended Six Months Ended June 30, 2024 (1) CA 42 12 9 5,000 2,008 734 30 % 30 % TX 41 4 2 5,193 630 212 20 % 20 % June 30, 2023 (2) CA 29 9 5 3,307 1,527 437 28 % 28 % TX 40 3 2 5,126 536 212 23 % 23 % (1) Based on the Company’s rental income and interest income on other real estate related investments, exclusive of operating expense reimbursements and adjustments for collectibility. (2) Based on the Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility. |
ORGANIZATION (Details)
ORGANIZATION (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) state investment loan facility bed | Dec. 31, 2023 USD ($) | |
Real Estate Properties [Line Items] | ||
Number of states with properties | state | 30 | |
Number of preferred equity investments | investment | 2 | |
Aggregate carrying value | $ | $ 433,532 | $ 180,368 |
Mortgage secured loans receivable | ||
Real Estate Properties [Line Items] | ||
Number of loans | 11 | |
Mezzanine loans receivable | ||
Real Estate Properties [Line Items] | ||
Number of loans | 4 | |
Skilled Nursing, Multi Service Campuses, Assisted Living, and Independent Living Facilities | ||
Real Estate Properties [Line Items] | ||
Number of facilities | facility | 235 | |
Number of operational beds and units in facilities | bed | 25,058 |
REAL ESTATE INVESTMENTS, NET -
REAL ESTATE INVESTMENTS, NET - Schedule of Investment in Owned Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate [Abstract] | ||
Land | $ 326,089 | $ 279,276 |
Buildings and improvements | 1,734,970 | 1,620,014 |
Integral equipment, furniture and fixtures | 102,876 | 100,504 |
Identified intangible assets | 5,283 | 5,283 |
Real estate investments | 2,169,218 | 2,005,077 |
Accumulated depreciation and amortization | (462,987) | (437,958) |
Real estate investments, net | $ 1,706,231 | $ 1,567,119 |
REAL ESTATE INVESTMENTS, NET _2
REAL ESTATE INVESTMENTS, NET - Narrative (Details) - Skilled Nursing, Multi-Service Campuses, Assisted living and Independent Living Facilities - facility | Jun. 30, 2024 | Sep. 30, 2022 | Jun. 30, 2022 |
Real Estate [Line Items] | |||
Number of facilities | 235 | ||
Triple-Net Leases | |||
Real Estate [Line Items] | |||
Number of facilities | 2 | 2 | |
Held for Sale | |||
Real Estate [Line Items] | |||
Number of facilities | 20 |
REAL ESTATE INVESTMENTS, NET _3
REAL ESTATE INVESTMENTS, NET - Schedule of Total Future Contractual Minimum Rental Income (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Future Contractual Minimum Rental Income | |
2024 (six months) | $ 110,578 |
2025 | 223,997 |
2026 | 224,609 |
2027 | 220,960 |
2028 | 218,885 |
2029 | 214,524 |
Thereafter | 980,405 |
Total | $ 2,193,958 |
REAL ESTATE INVESTMENTS, NET _4
REAL ESTATE INVESTMENTS, NET - Schedule of Tenant Purchase Options (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) property facility | |
Lessor, Lease, Description [Line Items] | |
Period of option window | 6 months |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Current Cash Rent | $ 3,200 |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Current Cash Rent | 3,400 |
Lease Expiration, Next option 2028 | Minimum | |
Lessor, Lease, Description [Line Items] | |
Current Cash Rent | 1,000 |
Lease Expiration, Next option 2028 | Maximum | |
Lessor, Lease, Description [Line Items] | |
Current Cash Rent | $ 1,600 |
SNF | Lease Expiration March 2029, Next option 2022 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 1 |
Current Cash Rent | $ 858 |
SNF | Lease Expiration November 2034, Next option 2024 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 4 |
Current Cash Rent | $ 3,988 |
SNF | Properties With Purchase Option, Current Cash Rent | |
Lessor, Lease, Description [Line Items] | |
Properties | facility | 11 |
Current Cash Rent | $ 5,100 |
SNF / Campus | Lease Expiration, Next option 2026 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 2 |
Current Cash Rent | $ 3,314 |
Purchase option, number of properties | facility | 3 |
SNF / Campus | Lease Expiration, Next option 2027 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 1 |
Current Cash Rent | $ 1,293 |
SNF / Campus | Lease Expiration, Next option 2028 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 1 |
Current Cash Rent | $ 1,293 |
Purchase option, number of properties | facility | 5 |
REAL ESTATE INVESTMENTS, NET _5
REAL ESTATE INVESTMENTS, NET - Schedule of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Real Estate [Abstract] | ||||
Contractual rent due | $ 54,843 | $ 47,752 | $ 107,777 | $ 93,922 |
Straight-line rent | (7) | (7) | (14) | (14) |
Amortization of lease incentive | (4) | 0 | (4) | 0 |
Amortization of below-market lease intangible | 575 | 0 | 1,150 | 0 |
Total | 55,407 | 47,745 | 108,909 | 93,908 |
Tenant operating expense reimbursement | $ 1,900 | $ 1,200 | $ 3,400 | $ 1,900 |
REAL ESTATE INVESTMENTS, NET _6
REAL ESTATE INVESTMENTS, NET - Schedule of Real Estate Acquisitions (Details) $ in Thousands | 6 Months Ended | |
Mar. 01, 2024 facility | Jun. 30, 2024 USD ($) facility property bed | |
Business Acquisition [Line Items] | ||
Purchase Price | $ 208,412 | |
Initial Annual Cash Rent | $ 17,621 | |
Number of Properties | property | 12 | |
Number of Beds/Units | bed | 1,299 | |
Skilled nursing | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 119,222 | |
Initial Annual Cash Rent | $ 10,331 | |
Number of Properties | 2 | 7 |
Number of Beds/Units | bed | 638 | |
Multi-service campuses | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 78,154 | |
Initial Annual Cash Rent | $ 6,268 | |
Number of Properties | property | 4 | |
Number of Beds/Units | bed | 575 | |
Assisted living | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 11,036 | |
Initial Annual Cash Rent | $ 1,022 | |
Number of Properties | property | 1 | |
Number of Beds/Units | bed | 86 | |
Assisted living | Joint Venture | ||
Business Acquisition [Line Items] | ||
Number of Properties | facility | 1 |
REAL ESTATE INVESTMENTS, NET _7
REAL ESTATE INVESTMENTS, NET - Lease Amendments and Terminations Narrative (Details) $ in Millions | 6 Months Ended | |||||
Apr. 01, 2024 USD ($) facility renewalOption installment | Mar. 16, 2023 USD ($) facility renewal_option | Jun. 30, 2024 property facility | Mar. 01, 2024 USD ($) facility lease renewal_option | Jan. 01, 2024 USD ($) facility renewal_option | Mar. 15, 2023 USD ($) | |
Real Estate [Line Items] | ||||||
Number of properties | property | 12 | |||||
SNF | ||||||
Real Estate [Line Items] | ||||||
Number of facilities acquired | 3 | |||||
SNF | Ensign | ||||||
Real Estate [Line Items] | ||||||
Initial lease term (in years) | 15 years | |||||
Number of properties with right to operate | 2 | |||||
Multi-service campuses | ||||||
Real Estate [Line Items] | ||||||
Number of facilities acquired | 2 | 2 | ||||
Number of properties | property | 4 | |||||
Assisted living | ||||||
Real Estate [Line Items] | ||||||
Number of properties | property | 1 | |||||
New Embassy Lease Agreement | ||||||
Real Estate [Line Items] | ||||||
Initial lease term (in years) | 10 years | |||||
Number of renewal options | renewal_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Annual cash rent | $ | $ 0.6 | |||||
New Embassy Lease Agreement | SNF | ||||||
Real Estate [Line Items] | ||||||
Number of facilities | 1 | |||||
New Embassy Lease Agreement | Multi-service campuses | ||||||
Real Estate [Line Items] | ||||||
Number of facilities | 1 | |||||
Ensign Amended Triple-Net Master Lease | ||||||
Real Estate [Line Items] | ||||||
Initial lease term (in years) | 20 years | |||||
Number of renewal options | renewal_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Number of leases amended | lease | 1 | |||||
Eduro Amended Triple-Net Master Lease | ||||||
Real Estate [Line Items] | ||||||
Annual cash rent increase under amended lease | $ | $ 2.1 | |||||
New Bayshire Lease | ||||||
Real Estate [Line Items] | ||||||
Initial lease term (in years) | 15 years | |||||
Number of renewal options | renewalOption | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Annual cash rent | $ | $ 2.6 | |||||
Lease amendment, deferral of unpaid rent | $ | $ 0.4 | |||||
Number of Installments | installment | 15 | |||||
New Bayshire Lease | SNF | ||||||
Real Estate [Line Items] | ||||||
Number of facilities acquired | 1 | |||||
New Bayshire Lease | Assisted living | ||||||
Real Estate [Line Items] | ||||||
Percentage of fixed rent escalator | 3% | |||||
Noble VA Lease Termination and New Pennant Lease | ||||||
Real Estate [Line Items] | ||||||
Initial lease term (in years) | 15 years | |||||
Number of renewal options | renewal_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Annual cash rent under amended lease | $ | $ 0.8 | $ 2.3 | ||||
Period of deferred rent to be repaid | 3 months | |||||
Noble VA Lease Termination and New Pennant Lease | Assisted living | ||||||
Real Estate [Line Items] | ||||||
Leases with terminated operations | 2 | |||||
Number of properties included or entered into lease | 2 |
IMPAIRMENT OF REAL ESTATE INV_3
IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | |
Real Estate [Line Items] | ||||
Gain on sale of real estate, net | $ 21 | $ 2,028 | $ 32 | $ 1,958 |
Facilities Held For Sale | ||||
Real Estate [Line Items] | ||||
Number of facilities | facility | 20 | 20 | ||
Level 3 | ||||
Real Estate [Line Items] | ||||
Gain on sale of real estate, net | $ 21 | |||
Level 3 | Facilities Held For Sale | ||||
Real Estate [Line Items] | ||||
Number of facilities | facility | 1 | 1 | ||
Minimum | Level 3 | Valuation, Market Approach | ||||
Real Estate [Line Items] | ||||
Prices per unit input | $ 11 | 18 | $ 11 | 18 |
Maximum | Level 3 | Valuation, Market Approach | ||||
Real Estate [Line Items] | ||||
Prices per unit input | 46 | 35 | 46 | 35 |
Weighted Average | Level 3 | Valuation, Market Approach | ||||
Real Estate [Line Items] | ||||
Prices per unit input | 24 | 21 | 24 | 21 |
Held for Sale | ||||
Real Estate [Line Items] | ||||
Impairment of real estate | $ 25,700 | $ 21,400 | $ 28,500 | $ 23,300 |
IMPAIRMENT OF REAL ESTATE INV_4
IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES - Schedule of Company's Dispositions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) facility | Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) facility | Jan. 31, 2024 USD ($) facility | Dec. 31, 2023 facility | Dec. 31, 2022 facility | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net sales proceeds | $ 140 | $ 14,464 | |||||
Net gain on sale | $ 21 | $ 2,028 | $ 32 | $ 1,958 | |||
Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of facilities | facility | 1 | 3 | 3 | 4 | |||
Net sales proceeds | $ 94 | $ 13,234 | $ 1,140 | $ 16,464 | |||
Net carrying value | 73 | 11,206 | 1,108 | 14,506 | |||
Net gain on sale | $ 21 | $ 2,028 | $ 32 | $ 1,958 | |||
Disposed of by Sale | ALF | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of facilities | facility | 1 | 1 | 1 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of facilities | facility | 20 | 15 | 20 | 15 | 14 | 5 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | ALF | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Principal amount | $ 2,000 | $ 2,000 | $ 1,000 |
IMPAIRMENT OF REAL ESTATE INV_5
IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES - Schedule of Company's Assets Held for Sale Activity (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) facility | |
Increase Decrease in Assets Held for Sale [Roll Forward] | ||
Beginning balance, at cost | $ 2,005,077 | |
Ending balance, at cost | 2,169,218 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Increase Decrease in Assets Held for Sale [Roll Forward] | ||
Beginning balance, at cost | 15,011 | $ 12,291 |
Additions to assets held for sale | 43,305 | 47,047 |
Assets sold | (1,108) | (14,506) |
Impairment of real estate held for sale | (28,455) | (23,278) |
Ending balance, at cost | $ 28,753 | $ 21,554 |
Number of facilities at beginning | facility | 14 | 5 |
Number of facilities, Additions to assets held for sale | facility | 9 | 14 |
Number of facilities, Assets sold | facility | (3) | (4) |
Number of facilities, Impairment of real estate held for sale | facility | 0 | 0 |
Number of facilities at end | facility | 20 | 15 |
OTHER REAL ESTATE RELATED AND_3
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS - Schedule of Other Real Estate Related Investments, at Fair Value (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) facility | Dec. 31, 2023 USD ($) | |
Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Principal amount | $ | $ 435,037 | |
Fair Value | $ | 422,651 | $ 178,568 |
Other Investments | ||
Real Estate Properties [Line Items] | ||
Principal amount | $ | 10,782 | |
Fair Value | $ | $ 10,881 | 1,801 |
Mortgage Secured and Mezzanine Loans Receivable | ||
Real Estate Properties [Line Items] | ||
Basis spread on variable rate (percent) | 5.34% | |
Mortgage secured loans receivable | ||
Real Estate Properties [Line Items] | ||
Number of facilities | 3 | |
Mortgage secured loans receivable | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Principal amount | $ | $ 357,872 | |
Fair Value | $ | $ 348,552 | 156,769 |
Weighted Average Contractual Interest Rate | 9.10% | |
Mortgage secured loans receivable | SNF | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 38 | |
Mortgage secured loans receivable | Campus | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 4 | |
Mortgage secured loans receivable | ALF | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 4 | |
Mortgage secured loans receivable | ILF | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 1 | |
Mezzanine loans receivable | ||
Real Estate Properties [Line Items] | ||
Number of facilities | 2 | |
Mezzanine loans receivable | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Principal amount | $ | $ 77,165 | |
Fair Value | $ | $ 74,099 | 21,799 |
Weighted Average Contractual Interest Rate | 12.80% | |
Mezzanine loans receivable | SNF | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 40 | |
Mezzanine loans receivable | Campus | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 3 | |
Mezzanine loans receivable | ALF | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 2 | |
Mezzanine loans receivable | ILF | Other loans receivable | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 0 | |
Preferred equity | Other Investments | ||
Real Estate Properties [Line Items] | ||
Principal amount | $ | $ 10,782 | |
Fair Value | $ | $ 10,881 | $ 1,801 |
Weighted Average Contractual Interest Rate | 11.70% | |
Preferred equity | SNF | Other Investments | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 8 | |
Preferred equity | Campus | Other Investments | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 3 | |
Preferred equity | ALF | Other Investments | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 0 | |
Preferred equity | ILF | Other Investments | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | 0 |
OTHER REAL ESTATE RELATED AND_4
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS - Schedule of Other Real Estate Related Investment Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Net change in other loans receivable | $ 989 | $ 733 | |
Other Real Estate Related Investments | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Origination of other real estate related investments | 253,840 | 28,243 | |
Accrued interest, net | 1,813 | (184) | |
Unrealized loss on other real estate related investments, net | (2,489) | (2,605) | |
Prepayments of other real estate related investments | 0 | (15,000) | |
Net change in other loans receivable | 253,164 | $ 10,454 | |
Other loans receivable | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Origination of other real estate related investments | 18,079 | ||
Mortgage loan receivable | $ 18,145 | $ 17,156 | |
Weighted average interest rate | 8.80% | ||
Expected credit loss | $ (2,094) | (2,094) | |
Principal Balance | 18,079 | ||
Net change in other real estate related investments | $ 16,051 | $ 15,062 |
OTHER REAL ESTATE RELATED AND_5
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS - Narrative (Details) | 6 Months Ended | |||||||
Jun. 03, 2024 USD ($) extension_option facility | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | May 01, 2024 USD ($) facility | Feb. 02, 2024 USD ($) extension_option facility | Feb. 01, 2024 USD ($) facility | Jan. 25, 2024 USD ($) facility extension_option | Jan. 01, 2024 USD ($) facility | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Investment interest rate (percentage) | 7.83% | |||||||
Participating mortgage loans, amount | $ 75,000,000 | |||||||
Preferred equity investments | $ 9,000,000 | $ 9,000,000 | $ 0 | |||||
Preferred equity investment, interest rate (percentage) | 0.11 | |||||||
Mortgage secured loan receivable | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities | facility | 1 | |||||||
Mortgage secured loan receivable | ALF | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 1,000,000 | |||||||
Investment interest rate (percentage) | 9% | |||||||
Mezzanine Loan | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 50,000,000 | $ 10,200,000 | ||||||
Investment interest rate (percentage) | 11.50% | |||||||
Number of renewal options | extension_option | 2 | 2 | ||||||
Lease renewal term (in years) | 6 months | 6 months | ||||||
Mezzanine Loan | Secured Overnight Financing Rate (SOFR) | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Investment interest rate (percentage) | 8.75% | 8.75% | ||||||
Subservicing fee percentage | 0.75% | 0.75% | ||||||
Mezzanine Loan | Secured Overnight Financing Rate (SOFR) Floor | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Investment interest rate (percentage) | 6% | 6% | ||||||
Mezzanine Loan | SNF | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities | facility | 15 | 1 | 10 | |||||
Principal amount | $ 35,000,000 | $ 7,400,000 | $ 9,800,000 | |||||
Period of unpaid interest payments due upon prepayment | 18 months | 18 months | 24 months | |||||
Mezzanine Loan | SNF | Minimum | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 1% | 1% | ||||||
Mezzanine Loan | SNF | Maximum | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 2% | 2% | ||||||
Other Loan Receivable | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | 18,079,000 | |||||||
Provision for loan losses, net | $ 0 | $ 0 | ||||||
Mortgage Loan | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Investment interest rate (percentage) | 9.10% | |||||||
Number of renewal options | extension_option | 2 | |||||||
Lease renewal term (in years) | 6 months | 1 year | ||||||
Mortgage Loan | Secured Overnight Financing Rate (SOFR) Floor | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Investment interest rate (percentage) | 5.15% | |||||||
Subservicing fee percentage | 0.25% | |||||||
Mortgage Loan | SNF | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities | facility | 2 | |||||||
Principal amount | $ 26,700,000 | |||||||
Mortgage Loan | Regional Healthcare Facility | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities | facility | 8 | |||||||
Principal amount | $ 165,000,000 | |||||||
Mortgage Loan | Regional Healthcare Facility | Secured Overnight Financing Rate (SOFR) | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Investment interest rate (percentage) | 4.25% |
OTHER REAL ESTATE RELATED AND_6
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS - Schedule of Loan Receivable Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | ||
Origination of loans receivable | $ 985 | $ 1,019 |
Principal payments | 0 | (287) |
Accrued interest, net | 4 | 1 |
Net change in other loans receivable | $ 989 | $ 733 |
OTHER REAL ESTATE RELATED AND_7
OTHER REAL ESTATE RELATED AND OTHER INVESTMENTS - Schedule of Interest and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Real Estate Properties [Line Items] | ||||
Interest and other income | $ 13,484 | $ 3,808 | $ 23,052 | $ 8,251 |
Mortgage secured loans receivable | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | 5,544 | 2,762 | 9,316 | 5,466 |
Mezzanine loans receivable | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | 2,494 | 695 | 4,389 | 2,278 |
Preferred equity investment | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | 144 | 0 | 212 | 0 |
Other loans receivable | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | 338 | 160 | 669 | 316 |
Other | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | $ 4,964 | $ 191 | $ 8,466 | $ 191 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Mortgage Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | $ 422,651 | $ 178,568 |
Recurring | Mortgage secured loans receivable | ||
Assets: | ||
Loan receivable | 348,552 | 156,769 |
Recurring | Mezzanine loans receivable | ||
Assets: | ||
Loan receivable | 74,099 | 21,799 |
Recurring | Level 1 | Mortgage Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 1 | Mortgage secured loans receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 1 | Mezzanine loans receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 2 | Mortgage Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 2 | Mortgage secured loans receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 2 | Mezzanine loans receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 3 | Mortgage Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | 422,651 | 178,568 |
Recurring | Level 3 | Mortgage secured loans receivable | ||
Assets: | ||
Loan receivable | 348,552 | 156,769 |
Recurring | Level 3 | Mezzanine loans receivable | ||
Assets: | ||
Loan receivable | $ 74,099 | $ 21,799 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Assets Measured at Fair Value on a Recurring Basis Using Level 3 Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Unrealized loss on other real estate related investments, net | $ (1,877) | $ (2,151) | $ (2,489) | $ (2,605) |
Investments in Real Estate Secured Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 156,769 | |||
Loan originations | 192,675 | |||
Accrued interest, net | 1,147 | |||
Unrealized loss on other real estate related investments, net | (2,039) | |||
Balance at end of period | 348,552 | 348,552 | ||
Investments in Mezzanine Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | 21,799 | |||
Loan originations | 52,165 | |||
Accrued interest, net | 585 | |||
Unrealized loss on other real estate related investments, net | (450) | |||
Balance at end of period | $ 74,099 | $ 74,099 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||||
Unrealized loss on other real estate related investments, net | $ 1,877,000 | $ 2,151,000 | $ 2,489,000 | $ 2,605,000 | |
Maximum | Level 3 | |||||
Financing Receivable, Past Due [Line Items] | |||||
Measurement input | 0.15 | 0.15 | |||
Minimum | Level 3 | |||||
Financing Receivable, Past Due [Line Items] | |||||
Measurement input | 0.11 | 0.11 | |||
Greater than 90 Days Past Due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Mortgage loan receivable | $ 0 | $ 0 | $ 0 | ||
Secured and Mezzanine Loans Receivable | |||||
Financing Receivable, Past Due [Line Items] | |||||
Unrealized loss on other real estate related investments, net | 2,400,000 | 3,200,000 | |||
Floating Rate Loans Receivable | |||||
Financing Receivable, Past Due [Line Items] | |||||
Unrealized loss on other real estate related investments, net | $ (500,000) | $ (700,000) |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Quantitative Information About Unobservable Inputs Related To Level 3 Fair Value Measurements (Details) - Level 3 - Discount Rate - Discounted cash flow $ in Thousands | Jun. 30, 2024 USD ($) |
Mortgage secured loans receivable | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, book value | $ 348,552 |
Mortgage secured loans receivable | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.09 |
Mortgage secured loans receivable | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.16 |
Mezzanine loans receivable | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, book value | $ 74,099 |
Mezzanine loans receivable | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.12 |
Mezzanine loans receivable | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.16 |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Face Value, Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Level 3 | Preferred equity investments | ||
Financial liabilities: | ||
Face Value | $ 10,782 | $ 1,782 |
Level 2 | Senior unsecured notes payable | ||
Financial liabilities: | ||
Face Value | 400,000 | 400,000 |
Carrying Amount | Level 3 | Preferred equity investments | ||
Financial liabilities: | ||
Preferred equity investments, fair value disclosure | 10,881 | 1,801 |
Carrying Amount | Level 2 | Senior unsecured notes payable | ||
Financial liabilities: | ||
Notes payable, fair value disclosure | 396,483 | 396,039 |
Fair Value | Level 3 | Preferred equity investments | ||
Financial liabilities: | ||
Preferred equity investments, fair value disclosure | 10,881 | 1,801 |
Fair Value | Level 2 | Senior unsecured notes payable | ||
Financial liabilities: | ||
Notes payable, fair value disclosure | $ 367,840 | $ 362,500 |
DEBT - Schedule of Debt Instrum
DEBT - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 675,000 | $ 600,000 |
Deferred Loan Fees | (3,852) | (4,402) |
Carrying Amount | 671,148 | 595,598 |
Secured borrowings | ||
Debt Instrument [Line Items] | ||
Principal Amount | 75,000 | 0 |
Deferred Loan Fees | 0 | 0 |
Carrying Amount | 75,000 | 0 |
Unsecured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Principal Amount | 0 | 0 |
Deferred Loan Fees | 0 | 0 |
Carrying Amount | 0 | 0 |
Notes payable | Senior unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Principal Amount | 400,000 | 400,000 |
Deferred Loan Fees | (3,517) | (3,961) |
Carrying Amount | 396,483 | 396,039 |
Term loan | Senior unsecured term loan | ||
Debt Instrument [Line Items] | ||
Principal Amount | 200,000 | 200,000 |
Deferred Loan Fees | (335) | (441) |
Carrying Amount | $ 199,665 | $ 199,559 |
DEBT - Senior Unsecured Notes P
DEBT - Senior Unsecured Notes Payable Narrative (Details) - Notes Payable - 2028 Senior Notes | Jun. 17, 2021 USD ($) |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 400,000,000 |
Interest rate (as percent) | 3.875% |
Gross proceeds from issuance | $ 400,000,000 |
Net proceeds from issuance | $ 393,800,000 |
Redemption price, percentage upon change of control (as percent) | 101% |
Period prior to March 30 2028 | |
Debt Instrument [Line Items] | |
Redemption price of notes (as percent) | 100% |
Period after March 30 2028 | |
Debt Instrument [Line Items] | |
Redemption price of notes (as percent) | 100% |
DEBT - Unsecured Revolving Cred
DEBT - Unsecured Revolving Credit Facility and Secured Borrowing Narrative (Details) | Jul. 30, 2024 USD ($) | Jun. 03, 2024 USD ($) | Feb. 08, 2019 USD ($) extension_option | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |||||
Outstanding amounts | $ 675,000,000 | $ 600,000,000 | |||
Participating mortgage loans, amount | $ 75,000,000 | ||||
Investment interest rate (percentage) | 7.83% | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility borrowing capacity | $ 600,000,000 | ||||
Outstanding amounts | $ 0 | 0 | |||
Borrowings outstanding | 0 | ||||
Number of extension options | extension_option | 2 | ||||
Extension option term (in months) | 6 months | ||||
Revolving Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Facility fee on revolving commitment fees (as percent) | 0.15% | ||||
Facility fee on revolving commitment fee based on investment grade ratings (as percent) | 0.125% | ||||
Revolving Credit Facility | Minimum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 0.10% | ||||
Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 1.10% | ||||
Revolving Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Facility fee on revolving commitment fees (as percent) | 0.35% | ||||
Facility fee on revolving commitment fee based on investment grade ratings (as percent) | 0.30% | ||||
Revolving Credit Facility | Maximum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 0.55% | ||||
Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 1.55% | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Subfacility capacity as percentage of available revolving commitments (as percent) | 10% | ||||
Swingline Loan | |||||
Line of Credit Facility [Line Items] | |||||
Subfacility capacity as percentage of available revolving commitments (as percent) | 10% | ||||
Secured borrowings | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding amounts | 75,000,000 | 0 | |||
Principal amount | $ 165,000,000 | ||||
Secured borrowings | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of secured debt | $ 75,000,000 | ||||
Secured borrowings | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 2.25% | ||||
Secured borrowings | Secured Overnight Financing Rate (SOFR) Floor | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 3% | ||||
Secured borrowings | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Exit fee (percentage) | 0.0050 | ||||
Secured borrowings | Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 2.50% | ||||
Term Loan | Senior Unsecured Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument face amount | $ 200,000,000 | ||||
Outstanding amounts | $ 200,000,000 | $ 200,000,000 | |||
Term Loan | Senior Unsecured Term Loan | Minimum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 0.50% | ||||
Term Loan | Senior Unsecured Term Loan | Minimum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 1.50% | ||||
Term Loan | Senior Unsecured Term Loan | Maximum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 1.20% | ||||
Term Loan | Senior Unsecured Term Loan | Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (as percent) | 2.20% |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 06, 2024 | May 05, 2024 | |
Class of Stock [Line Items] | |||||
Average sales price (in usd per share) | $ 19.71 | $ 19.71 | |||
ATM Program | |||||
Class of Stock [Line Items] | |||||
Authorized aggregate offering price of common stock | $ 500,000,000 | $ 500,000,000 | |||
Expected term | 1 year | ||||
Settlement of shares outstanding (in shares) | 6,736,089 | 6,736,089 | |||
Remaining offering amount available | $ 193,500,000 |
EQUITY - Schedule of At-The-Mar
EQUITY - Schedule of At-The-Market Offering Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | |||
Gross proceeds | $ 572,236 | $ (629) | |
ATM Program | |||
Class of Stock [Line Items] | |||
Number of shares (in shares) | 12,145 | 23,745 | |
Average sales price per share (in usd per share) | $ 25.24 | $ 24.42 | |
Gross proceeds | $ 306,534 | $ 579,767 | |
Commissions paid on stock issuance | $ 3,800 | $ 7,200 |
EQUITY - Schedule of Dividends
EQUITY - Schedule of Dividends on Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Dividends on common stock | ||||
Dividends declared per share (in usd per share) | $ 0.29 | $ 0.29 | $ 0.28 | $ 0.28 |
Dividends payment date | Jul. 15, 2024 | Apr. 15, 2024 | ||
Dividends payable as of record date | $ 44,721 | $ 41,192 | ||
Dividends record date | Jun. 28, 2024 | Mar. 28, 2024 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for awards (in shares) | 5,000,000 | |||||
Value of forfeited stock awards | $ 0.9 | |||||
Unamortized stock-based compensation expense | $ 7.4 | |||||
RSAs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | 4 years | ||||
RSAs | Board of Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Performance Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Value of forfeited stock awards | $ 0.6 | $ 0.6 | ||||
Performance Stock Awards | Minimum | Vesting Period One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Performance Stock Awards | Minimum | Vesting Period Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 1 year | |||||
Performance Stock Awards | Maximum | Vesting Period One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Performance Stock Awards | Maximum | Vesting Period Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 4 years | |||||
Performance Shares T S R Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | 3 years | ||||
Performance Shares T S R Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of original awards granted, TSR | 0% | |||||
Performance Shares T S R Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of original awards granted, TSR | 200% | |||||
RSAs and PSAs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average remaining vesting period (in years) | 1 year 8 months 12 days |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Award and Performance Award Activity (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 510,596 |
Vested (in shares) | shares | (169,811) |
Forfeited (in shares) | shares | (35,161) |
Unvested, ending balance (in shares) | shares | 327,336 |
Weighted Average Share Price | |
Unvested, beginning balance (in usd per share) | $ / shares | $ 21.01 |
Vested (in usd per share) | $ / shares | 20.67 |
Forfeited (in usd per share) | $ / shares | 20.48 |
Unvested, ending balance (in usd per share) | $ / shares | $ 21.43 |
Board Awards | |
Shares | |
Granted (in shares) | shares | 21,712 |
Weighted Average Share Price | |
Granted (in usd per share) | $ / shares | $ 23.95 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 1,406 | $ 924 | $ 3,526 | $ 1,860 |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net income (loss) attributable to CareTrust REIT, Inc. | $ 10,758 | $ (484) | $ 39,504 | $ 18,743 |
Less: Net income allocated to participating securities | (95) | (89) | (191) | (178) |
Numerator for basic earnings available to common stockholders | 10,663 | (573) | 39,313 | 18,565 |
Numerator for diluted earnings available to common stockholders | $ 10,663 | $ (573) | $ 39,313 | $ 18,565 |
Denominator: | ||||
Weighted-average basic common shares outstanding (in shares) | 144,895 | 99,117 | 138,866 | 99,090 |
Weighted-average diluted common shares outstanding (in shares) | 145,258 | 99,117 | 139,230 | 99,194 |
Earnings (loss) per common share attributable to CareTrust REIT, Inc., basic (in usd per share) | $ 0.07 | $ (0.01) | $ 0.28 | $ 0.19 |
Earnings (loss) per common share attributable to CareTrust REIT, Inc., diluted (in usd per share) | $ 0.07 | $ (0.01) | $ 0.28 | $ 0.19 |
Antidilutive unvested RSAs, TSR Units and PSAs excluded from the computation (in shares) | 327 | 500 | 327 | 316 |
PSAs and TSR Units | ||||
Denominator: | ||||
Dilutive potential common shares (in shares) | 363 | 0 | 364 | 90 |
Forward Equity Agreements | ||||
Denominator: | ||||
Dilutive potential common shares (in shares) | 0 | 0 | 0 | 14 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Millions | 6 Months Ended | ||
Apr. 01, 2024 USD ($) facility | Jan. 03, 2024 USD ($) facility | Jun. 30, 2024 facility | |
Jv Partner | |||
Noncontrolling Interest [Line Items] | |||
Preferred ownership (percentage) | 100% | ||
Equity ownership percentage (percentage) | 50% | ||
JV Partner 97.5% | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage held by noncontrolling interest (percentage) | 97.50% | ||
JV Partner 95% | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage held by noncontrolling interest (percentage) | 95% | ||
Jv Partner | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage held by noncontrolling interest (percentage) | 2.50% | ||
SNF | |||
Noncontrolling Interest [Line Items] | |||
Number of facilities acquired | facility | 3 | ||
ALF | |||
Noncontrolling Interest [Line Items] | |||
Number of facilities acquired | facility | 1 | 1 | |
Contributed to JV | $ 10.8 | ||
Real estate property acquired | 11 | ||
ALF | Jv Partner | |||
Noncontrolling Interest [Line Items] | |||
Contributed to JV | $ 0.2 | ||
Multi-service campuses | |||
Noncontrolling Interest [Line Items] | |||
Number of facilities acquired | facility | 2 | 2 | |
Contributed to JV | $ 28.1 | ||
Real estate property acquired | 28.8 | ||
Multi-service campuses | Jv Partner | |||
Noncontrolling Interest [Line Items] | |||
Contributed to JV | $ 0.7 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Real estate investments, net | $ 1,706,231 | $ 1,567,119 |
Cash and cash equivalents | 495,134 | 294,448 |
Accounts and other receivables | 1,096 | 395 |
Prepaid and other assets | 30,502 | 23,337 |
Total assets | 2,698,754 | 2,084,838 |
Liabilities: | ||
Total liabilities | 752,981 | 666,121 |
Variable Interest Entity, Primary Beneficiary | ||
Assets: | ||
Real estate investments, net | 106,439 | 68,106 |
Cash and cash equivalents | 1,013 | 0 |
Accounts and other receivables | 246 | 0 |
Prepaid and other assets | 0 | 2,800 |
Total assets | 107,698 | 70,906 |
Liabilities: | ||
Accounts payable, accrued liabilities and deferred rent liabilities | 6,775 | 7,239 |
Total liabilities | $ 6,775 | $ 7,239 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Ensign and Pennant | |
Other Commitments [Line Items] | |
Aggregate required financing of capital expenditures as percentage of initial investment in property (as percent) | 20% |
Tenant ESG Program | |
Other Commitments [Line Items] | |
Authorized annual fund | $ 500 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Commitments [Line Items] | ||
Commitments and contingencies | ||
Remaining Commitment | ||
Other Commitments [Line Items] | ||
Commitments and contingencies | 19,417 | |
Capital expenditures | Remaining Commitment | ||
Other Commitments [Line Items] | ||
Commitments and contingencies | 14,302 | |
Mortgage loans | Remaining Commitment | ||
Other Commitments [Line Items] | ||
Commitments and contingencies | 4,700 | |
Other loans receivable | Remaining Commitment | ||
Other Commitments [Line Items] | ||
Commitments and contingencies | 415 | |
Certain Capital Improvements at Triple-Net Leased Facilities | ||
Other Commitments [Line Items] | ||
Funding commitment | 14,300 | |
Portion of funding commitment subject to rent increase at time of funding | $ 6,500 |
CONCENTRATION OF RISK (Details)
CONCENTRATION OF RISK (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 unit_bed facility | Jun. 30, 2023 facility unit_bed | Jun. 30, 2024 unit_bed facility | Jun. 30, 2023 facility unit_bed | |
CA | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 42 | 29 | 42 | 29 |
Number of Beds/Units | unit_bed | 5,000 | 3,307 | 5,000 | 3,307 |
CA | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 12 | 9 | 12 | 9 |
Number of Beds/Units | unit_bed | 2,008 | 1,527 | 2,008 | 1,527 |
CA | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 9 | 5 | 9 | 5 |
Number of Beds/Units | unit_bed | 734 | 437 | 734 | 437 |
CA | Rental Revenue | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 30% | 28% | 30% | 28% |
TX | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 41 | 40 | 41 | 40 |
Number of Beds/Units | unit_bed | 5,193 | 5,126 | 5,193 | 5,126 |
TX | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 4 | 3 | 4 | 3 |
Number of Beds/Units | unit_bed | 630 | 536 | 630 | 536 |
TX | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 2 | 2 | 2 | 2 |
Number of Beds/Units | unit_bed | 212 | 212 | 212 | 212 |
TX | Rental Revenue | Geographic Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 20% | 23% | 20% | 23% |
Ensign | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 87 | 83 | 87 | 83 |
Number of Beds/Units | unit_bed | 9,290 | 8,741 | 9,290 | 8,741 |
Ensign | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 8 | 8 | 8 | 8 |
Number of Beds/Units | unit_bed | 997 | 997 | 997 | 997 |
Ensign | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 7 | 7 | 7 | 7 |
Number of Beds/Units | unit_bed | 661 | 661 | 661 | 661 |
Ensign | Rental Revenue | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 29% | 36% | 29% | 36% |
Priority Management Group | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 13 | 13 | 13 | 13 |
Number of Beds/Units | unit_bed | 1,742 | 1,742 | 1,742 | 1,742 |
Priority Management Group | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 2 | 2 | 2 | 2 |
Number of Beds/Units | unit_bed | 402 | 402 | 402 | 402 |
Priority Management Group | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | facility | 0 | 0 | 0 | 0 |
Number of Beds/Units | unit_bed | 0 | 0 | 0 | 0 |
Priority Management Group | Rental Revenue | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 13% | 16% | 13% | 16% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2024 USD ($) facility | Jul. 30, 2024 USD ($) | Jun. 03, 2024 USD ($) | Sep. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Subsequent Event [Line Items] | ||||||
Investment interest rate (percentage) | 7.83% | |||||
Preferred equity investments | $ 9,000 | $ 9,000 | $ 0 | |||
Preferred equity investment, interest rate (percentage) | 0.11 | |||||
Secured borrowings | ||||||
Subsequent Event [Line Items] | ||||||
Principal amount | $ 165,000 | |||||
Subsequent Event | Secured borrowings | ||||||
Subsequent Event [Line Items] | ||||||
Repayments of secured debt | $ 75,000 | |||||
Subsequent Event | Secured borrowings | Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Loss on extinguishment of debt | $ 400 | |||||
Subsequent Event | SNF | Secured borrowings | ||||||
Subsequent Event [Line Items] | ||||||
Principal amount | $ 260,000 | |||||
Number of facilities | facility | 37 | |||||
Investment interest rate (percentage) | 8.40% | |||||
Lockout period | 24 months | |||||
Preferred equity investments | $ 43,000 | |||||
Preferred equity investment, interest rate (percentage) | 0.11 |