SILA REALTY TRUST, INC., 10-Q filed on 11/12/2024
Quarterly Report
v3.24.3
Cover - shares
 9 Months Ended
Sep. 30, 2024
Nov. 07, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-42129  
Entity Registrant Name SILA REALTY TRUST, INC.  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 46-1854011  
Entity Address, Address Line One 1001 Water Street,  
Entity Address, Address Line Two Suite 800  
Entity Address, City or Town Tampa,  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33602  
City Area Code (813)  
Local Phone Number 287-0101  
Title of 12(b) Security Common stock, $0.01 par value per share  
Trading Symbol SILA  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   55,018,442
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001567925  
Current Fiscal Year End Date --12-31  
v3.24.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Real estate:    
Land $ 160,984 $ 157,821
Buildings and improvements, less accumulated depreciation of $264,224 and $227,156, respectively 1,559,654 1,470,831
Total real estate, net 1,720,638 1,628,652
Cash and cash equivalents 28,606 202,019
Intangible assets, less accumulated amortization of $117,336 and $102,456, respectively 130,982 134,999
Goodwill 17,700 17,700
Right-of-use assets 36,219 36,384
Other assets 73,288 79,825
Total assets 2,007,433 2,099,579
Liabilities:    
Credit facility, net of deferred financing costs of $3,389 and $1,847, respectively 521,611 523,153
Accounts payable and other liabilities 36,734 30,381
Intangible liabilities, less accumulated amortization of $8,446 and $7,417, respectively 7,384 10,452
Lease liabilities 41,229 41,158
Total liabilities 606,958 605,144
Stockholders’ equity:    
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding 0 0
Common stock, $0.01 par value per share, 510,000,000 shares authorized; 61,685,365 and 61,154,404 shares issued, respectively; 55,018,442 and 56,983,564 shares outstanding, respectively [1] 550 570
Additional paid-in capital 1,997,642 2,044,450
Distributions in excess of accumulated earnings (603,703) (567,188)
Accumulated other comprehensive income 5,986 16,603
Total stockholders’ equity 1,400,475 1,494,435
Total liabilities and stockholders’ equity $ 2,007,433 $ 2,099,579
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Buildings and improvements, accumulated depreciation $ 264,224 $ 227,156
Intangible assets, accumulated amortization 117,336 102,456
Credit facility, deferred financing costs 3,389 1,847
Intangible liabilities, accumulated amortization $ 8,446 $ 7,417
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 510,000,000 510,000,000
Common stock, shares issued (in shares) [1] 61,685,365 61,154,404
Common stock, shares outstanding (in shares) [1] 55,018,442 56,983,564
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue:        
Rental revenue $ 46,118 $ 48,542 $ 140,311 $ 143,151
Expenses:        
Rental expenses 5,823 5,005 17,226 14,728
Listing-related expenses 32 0 3,012 0
General and administrative expenses 4,800 4,828 18,321 16,478
Depreciation and amortization 17,865 18,097 57,009 55,452
Impairment and disposition losses 792 0 1,210 6,708
Total operating expenses 29,312 27,930 96,778 93,366
Other (expense) income:        
Gain on dispositions of real estate 0 1 76 22
Interest and other income 597 23 3,889 170
Interest expense (5,468) (5,653) (15,955) (16,939)
Total other (expense) income (4,871) (5,629) (11,990) (16,747)
Net income attributable to common stockholders 11,935 14,983 31,543 33,038
Other comprehensive (loss) income - unrealized (loss) gain on interest rate swaps, net (11,370) 2,315 (10,617) 1,433
Comprehensive income attributable to common stockholders $ 565 $ 17,298 $ 20,926 $ 34,471
Weighted average number of common shares outstanding:        
Basic (in shares) [1] 55,571,298 56,859,076 56,634,376 56,748,751
Diluted (in shares) [1] 56,081,618 57,320,665 57,094,737 57,210,977
Net income per common share attributable to common stockholders:        
Basic (in dollars per share) [1] $ 0.21 $ 0.26 $ 0.55 $ 0.58
Diluted (in dollars per share) [1] 0.21 0.26 0.55 0.58
Distributions declared per common share (in dollars per share) [1] $ 0.40 $ 0.40 $ 1.20 $ 1.20
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Repurchase of common stock
Tender offer repurchase of common stock
Common Stock
Common Stock
Repurchase of common stock
Common Stock
Tender offer repurchase of common stock
Additional Paid-in Capital
Additional Paid-in Capital
Repurchase of common stock
 [3]
Additional Paid-in Capital
Tender offer repurchase of common stock
 [3]
Distributions in Excess of Accumulated Earnings
Accumulated Other Comprehensive Income
Balance, (in shares) at Dec. 31, 2022 [1]       56,563,992              
Balance beginning at Dec. 31, 2022 $ 1,555,095     $ 566 [1]     $ 2,025,873 [1]     $ (499,334) $ 27,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock under the distribution reinvestment plan (in shares) [1]       571,163              
Issuance of common stock under the distribution reinvestment plan 18,675     $ 6 [1]     18,669 [1]        
Vesting of restricted stock (in shares) [1]       40,113              
Stock-based compensation 3,721           3,721 [1]        
Other offering costs (6)           (6) [1]        
Repurchase of common stock and tender offer (in shares) [1]       (286,268)              
Repurchase of common stock and tender offer (9,376)     $ (3) [1]     (9,373) [1]        
Distributions to common stockholders (68,464)                 (68,464)  
Other comprehensive (loss) income 1,433                   1,433
Net income 33,038                 33,038  
Balance, (in shares) at Sep. 30, 2023 [1]       56,889,000              
Balance ending at Sep. 30, 2023 1,534,116     $ 569 [1]     2,038,884 [1]     (534,760) 29,423
Balance, (in shares) at Jun. 30, 2023 [1]       56,785,786              
Balance beginning at Jun. 30, 2023 1,535,863     $ 568 [1]     2,034,814 [1]     (526,627) 27,108
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock under the distribution reinvestment plan (in shares) [1]       191,934              
Issuance of common stock under the distribution reinvestment plan 6,225     $ 2 [1]     6,223 [1]        
Vesting of restricted stock (in shares) [1]       15,250              
Stock-based compensation 1,228           1,228 [1]        
Repurchase of common stock and tender offer (in shares) [1]       (103,970)              
Repurchase of common stock and tender offer (3,382)     $ (1) [1]     (3,381) [1]        
Distributions to common stockholders (23,116)                 (23,116)  
Other comprehensive (loss) income 2,315                   2,315
Net income 14,983                 14,983  
Balance, (in shares) at Sep. 30, 2023 [1]       56,889,000              
Balance ending at Sep. 30, 2023 $ 1,534,116     $ 569 [1]     2,038,884 [1]     (534,760) 29,423
Balance, (in shares) at Dec. 31, 2023 56,983,564 [2]     56,983,564 [3]              
Balance beginning at Dec. 31, 2023 $ 1,494,435     $ 570 [3]     2,044,450 [3]     (567,188) 16,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock under the distribution reinvestment plan (in shares) [3]       333,402              
Issuance of common stock under the distribution reinvestment plan 9,979     $ 3 [3]     9,976 [3]        
Vesting of restricted stock (in shares) [3]       197,559              
Stock-based compensation 3,798     $ 2 [3]     3,796 [3]        
Other offering costs (26)           (26) [3]        
Repurchase of common stock and tender offer (in shares)     (2,212,389)   (283,694) [3] (2,212,389) [3]          
Repurchase of common stock and tender offer   $ (8,486) $ (52,093)   $ (3) [3] $ (22) [3]   $ (8,483) $ (52,071)    
Distributions to common stockholders (68,058)                 (68,058)  
Other comprehensive (loss) income (10,617)                   (10,617)
Net income $ 31,543                 31,543  
Balance, (in shares) at Sep. 30, 2024 55,018,442 [2]     55,018,442 [3]              
Balance ending at Sep. 30, 2024 $ 1,400,475     $ 550 [3]     1,997,642 [3]     (603,703) 5,986
Balance, (in shares) at Jun. 30, 2024 [3]       57,216,478              
Balance beginning at Jun. 30, 2024 1,472,911     $ 572 [3]     2,048,406 [3]     (593,423) 17,356
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Vesting of restricted stock (in shares) [3]       14,535              
Stock-based compensation 1,311           1,311 [3]        
Repurchase of common stock and tender offer (in shares) [3]         (182) (2,212,389)          
Repurchase of common stock and tender offer   $ (4) $ (52,093)     $ (22) [3]   $ (4) $ (52,071)    
Distributions to common stockholders (22,215)                 (22,215)  
Other comprehensive (loss) income (11,370)                   (11,370)
Net income $ 11,935                 11,935  
Balance, (in shares) at Sep. 30, 2024 55,018,442 [2]     55,018,442 [3]              
Balance ending at Sep. 30, 2024 $ 1,400,475     $ 550 [3]     $ 1,997,642 [3]     $ (603,703) $ 5,986
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[2] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[3] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities:    
Net income attributable to common stockholders $ 31,543,000 $ 33,038,000
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities:    
Depreciation and amortization 57,009,000 55,452,000
Amortization of deferred financing costs 1,607,000 1,240,000
Amortization of above- and below-market leases, net 978,000 619,000
Other amortization expenses 550,000 598,000
Gain on dispositions of real estate (76,000) (22,000)
Loss on extinguishment of debt 228,000 0
Impairment and disposition losses 1,210,000 6,708,000
Straight-line rent adjustments, net of write-offs (3,767,000) (2,490,000)
Stock-based compensation 3,798,000 3,721,000
Changes in operating assets and liabilities:    
Accounts payable and other liabilities 5,463,000 (1,063,000)
Other assets (1,276,000) 40,000
Net cash provided by operating activities 97,267,000 97,841,000
Cash flows from investing activities:    
Investments in real estate (164,044,000) (69,821,000)
Proceeds from real estate dispositions 16,120,000 12,388,000
Capital expenditures and other costs (1,100,000) (1,590,000)
Net cash used in investing activities (149,024,000) (59,023,000)
Cash flows from financing activities:    
Proceeds from credit facility 270,000,000 50,000,000
Payments on credit facility (270,000,000) (28,000,000)
Payments of deferred financing costs (2,578,000) (12,000)
Offering costs on issuance of common stock (61,000) (10,000)
Distributions to common stockholders (59,217,000) (49,774,000)
Net cash used in financing activities (121,822,000) (37,172,000)
Net change in cash, cash equivalents and restricted cash (173,579,000) 1,646,000
Cash, cash equivalents and restricted cash - Beginning of period 202,185,000 13,083,000
Cash, cash equivalents and restricted cash - End of period 28,606,000 14,729,000
Supplemental cash flow disclosure:    
Interest paid 14,509,000 15,751,000
Supplemental disclosure of non-cash transactions:    
Common stock issued through distribution reinvestment plan 9,979,000 18,675,000
Change in accrued distributions to common stockholders (1,138,000) 15,000
Change in accrued capital expenditures and other costs 1,321,000 243,000
Change in accrued acquisition costs related to investments in real estate 9,000 1,000
Change in accrued costs and fees related to the tender offer 613,000 0
Right-of-use assets obtained in exchange for new lease liabilities 433,000 0
Repurchase of common stock    
Cash flows from financing activities:    
Repurchase of common stock (8,486,000) (9,376,000)
Tender offer repurchase of common stock    
Cash flows from financing activities:    
Repurchase of common stock $ (51,480,000) $ 0
v3.24.3
Organization and Business Operations
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Operations Organization and Business Operations
Sila Realty Trust, Inc., or the Company, is a Maryland corporation, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. The Company is primarily focused on investing in high quality healthcare facilities across the continuum of care, which the Company believes typically generate predictable, durable and growing income streams. The Company may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.
Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership and directly and indirectly owns 100% of the Operating Partnership. Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries.
New York Stock Exchange Listing and Reverse Stock Split
On June 13, 2024, the Company's common stock, par value $0.01 per share, or the Common Stock, was listed and began trading on the New York Stock Exchange, or the NYSE, under the ticker symbol "SILA", or the Listing. Upon the Listing, all outstanding shares of Class I Common Stock and Class T Common Stock were automatically converted into shares of Class A Common Stock on a one-for-one basis and authorized but unissued shares of Class I Common Stock, Class T Common Stock and Class T2 Common Stock were reclassified into additional shares of Class A Common Stock. Class A Common Stock was then immediately renamed “Common Stock” and is the sole class of stock traded on the NYSE.
On April 8, 2024, in anticipation of the Listing, the Company amended its charter to effect a one-for-four reverse stock split, or the Reverse Stock Split, of each issued and outstanding share of each class of Common Stock of the Company, effective May 1, 2024, and the Company also amended its charter to decrease the par value of each issued and outstanding share of the Company's Common Stock from $0.04 par value per share to $0.01 par value per share immediately after the Reverse Stock Split. In addition, equitable adjustments were made to the maximum number of shares of the Company's Common Stock that may be issued pursuant to the Company’s Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, and the maximum number of shares of the Company's Common Stock that may be granted under incentive stock awards under the A&R Incentive Plan, in each case, to reflect the Reverse Stock Split. The number of shares of the Company's Common Stock subject to outstanding awards under the A&R Incentive Plan were also equitably adjusted to reflect the Reverse Stock Split. The Reverse Stock Split affected all record holders of the Company’s Common Stock uniformly and did not affect any record holder’s percentage ownership interest. The Reverse Stock Split did not affect the number of the Company’s authorized shares of Common Stock. All references made to share or per share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted as though the Reverse Stock Split had been effected prior to all periods presented.
"Dutch Auction" Tender Offer
On June 13, 2024, in conjunction with the Listing, the Company commenced a modified "Dutch Auction" tender offer, or the Tender Offer, to purchase shares of its Common Stock for cash at a price per share of not greater than $24.00 nor less than $22.60, net to the seller in cash, less any applicable withholding taxes and without interest, for a maximum aggregate purchase price of no more than $50,000,000. The Tender Offer expired on July 19, 2024. As a result of the Tender Offer, the Company accepted for purchase 2,212,389 shares of Common Stock (which represented approximately 3.9% of the total number of shares of Common Stock outstanding as of July 19, 2024) at a purchase price of $22.60 per share, for an aggregate purchase price of approximately $50,000,000, excluding all related costs and fees. The Company incurred $2,093,000 of costs and fees related to the Tender Offer which are recorded as a reduction in equity on the accompanying condensed consolidated financial statements. The Company funded the Tender Offer and related costs and fees with its available cash.
v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction
with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2023, and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the SEC on March 6, 2024. In the opinion of management, all adjustments, consisting of a normal and recurring nature considered for a fair presentation, have been included. Operating results for the three and nine months ended September 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
Principles of Consolidation and Basis of Presentation
The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Cash consists of demand deposits at commercial banks. Cash equivalents consist of highly liquid money market funds with original maturities of three months or less at the time of purchase. Restricted cash consists of cash held in an escrow account in accordance with a tenant's lease agreement. Restricted cash is reported in other assets in the accompanying condensed consolidated balance sheets.
The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands):
Nine Months Ended
September 30,
20242023
Beginning of period:
Cash and cash equivalents$202,019 $12,917 
Restricted cash166 166 
Cash, cash equivalents and restricted cash$202,185 $13,083 
End of period:
Cash and cash equivalents$28,606 $14,563 
Restricted cash— 

166 
Cash, cash equivalents and restricted cash$28,606 $14,729 
Recently Issued Accounting Pronouncements
Segment Reporting
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, or ASU 2023-07, to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption of ASU 2023-07 is permitted. The Company does not expect that the adoption of ASU 2023-07 will have a material impact on its consolidated financial statements. The Company operates under a single reportable segment and compliance with these new disclosure requirements will begin with the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
v3.24.3
Real Estate
 9 Months Ended
Sep. 30, 2024
Real Estate [Abstract]  
Real Estate Real Estate
Acquisitions
During the nine months ended September 30, 2024, the Company purchased eight real estate properties in four separate transactions, which were determined to be asset acquisitions. The Company allocated the purchase price to tangible assets, consisting of land, building and improvements, and tenant improvements; intangible assets, consisting of in-place leases and right-of-use assets; and lease liabilities, based on the relative fair value method of allocating all accumulated costs.
The following table summarizes the cash consideration transferred, including acquisition costs, and the purchase price allocation for acquisitions during the nine months ended September 30, 2024 (amounts in thousands):
Property Description Date AcquiredOwnership Percentage
Cash Consideration Transferred
(amount in thousands)
Brownsburg Healthcare Facility 02/26/2024100%$39,115 
Cave Creek Healthcare Facility03/20/2024100%19,355 
Marana Healthcare Facility03/20/2024100%16,156 
Surprise Healthcare Facility03/20/2024100%18,602 
Tucson Healthcare Facility V03/20/2024100%15,994 
Weslaco Healthcare Facility03/20/2024100%15,713 
Reading Healthcare Facility05/21/2024100%10,754 
Fort Smith Healthcare Facility07/25/2024100%28,364 
Total $164,053 
Total
Land$8,821 
Building and improvements113,365 
Tenant improvements22,194 
In-place leases19,468 
Right-of-use assets638 
Total assets acquired164,486 
Lease liabilities(433)
Total liabilities acquired(433)
Net assets acquired$164,053 
The Company capitalized acquisition costs of $717,000, which are included in the allocation of the real estate acquisitions presented above.
Dispositions
On September 25, 2024, the Company sold the Fort Myers Healthcare Facility I and the Fort Myers Healthcare Facility II, or the Fort Myers Healthcare Facilities, for a sales price of $15,500,000, generating net proceeds of $14,681,000, excluding real estate tax pro-rations. The Fort Myers Healthcare Facilities were not previously held for sale, and the Company recognized a loss on disposition of $792,000, which represents the cost to sell, and is presented in impairment and disposition losses in the condensed consolidated statements of comprehensive income. The Fort Myers Healthcare Facilities were formerly leased to a tenant that was owned and sponsored by GenesisCare USA, Inc. and its affiliates, or GenesisCare.
On January 31, 2024, the Company sold one property for a sales price of $1,500,000, generating net proceeds of $1,439,000. The Company recognized a gain on sale of $76,000, which is presented in gain on dispositions of real estate in the condensed consolidated statements of comprehensive income. The property was leased to a tenant under the common control of Vibra Healthcare, LLC, or Vibra. The Company was recognizing revenue from Vibra on a cash basis due to payment uncertainty. As a result of the property sale and lease termination, rental revenue from Vibra for the nine months ended September 30, 2024, included $4,098,000 of lease termination income received from the former tenant which is presented in rental revenue in the condensed consolidated statements of comprehensive income, in addition to $902,000 of deferred rent from prior periods.
Investment Risk Concentrations
As of September 30, 2024, the Company did not have exposure to geographic concentration that accounted for at least 10.0% of rental revenue for the nine months ended September 30, 2024.
As of September 30, 2024, the Company had one exposure to tenant concentration that accounted for at least 10.0% of rental revenue for the nine months ended September 30, 2024. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 14.7% of rental revenue for the nine months ended September 30, 2024.
Impairment Losses
The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate assets may not be recoverable, the Company assesses the recoverability of the asset group by estimating undiscounted future cash flows, including eventual disposition. Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the asset group, an impairment charge will be recorded to the extent that the carrying value exceeds the estimated fair value of the asset group. When testing goodwill for impairment, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment loss for the amount by which the carrying value, including goodwill, exceeds the reporting unit’s fair value. The fair values are determined based on the guidance in ASC 820, Fair Value Measurements and Disclosures, or ASC 820.
GenesisCare
As disclosed in the Current Report on Form 8-K that the Company filed with the SEC on June 5, 2023, GenesisCare, the sponsor and owner of the tenant in certain of the Company's real estate properties announced that it filed for Chapter 11 bankruptcy protection under the United States Bankruptcy Code on June 1, 2023. During the bankruptcy proceedings, GenesisCare sought U.S. bankruptcy court approval to reject certain unexpired real property leases. GenesisCare's lease obligations with the Company were not included in any motions. On March 27, 2024, the Company entered into a second amendment to the second amended and restated master lease, or the GenesisCare Amended Master Lease, with GenesisCare in connection with its emergence from bankruptcy on February 16, 2024. Prior to the GenesisCare Amended Master Lease, GenesisCare was a tenant at 17 of the Company's real estate properties pursuant to a first amendment to the second amended and restated master lease, or the GenesisCare Master Lease. The GenesisCare Amended Master Lease removed 10 of the Company's properties from the GenesisCare Master Lease, or the Severed Properties. The seven properties remaining under the GenesisCare Amended Master Lease will continue to be leased to GenesisCare and had no material changes in lease terms pursuant to the GenesisCare Master Lease. As a result of the GenesisCare Amended Master Lease, the Company entered into lease agreements with new tenants at six of the Severed Properties during the nine months ended September 30, 2024. The Fort Myers Healthcare Facilities, which were sold on September 25, 2024, represented two of the Severed Properties. The Company is currently in the process of negotiating a lease with a new tenant at one of the Severed Properties. Additionally, on October 24, 2024, the Company entered into a contract for sale with a buyer for one of the Severed Properties. In exchange for the Severed Properties, the Company received a $2,000,000 severance fee from GenesisCare, or the GenesisCare Severance Fee, on March 27, 2024. The Company will recognize the GenesisCare Severance Fee in rental revenue on a straight-line basis over the remaining GenesisCare Amended Master Lease term. During the three and nine months ended September 30, 2024, the Company recognized $57,000 and $117,000, respectively, of amortization of the GenesisCare Severance Fee in rental revenue in the accompanying condensed consolidated statements of comprehensive income.
During the nine months ended September 30, 2024, the Company recorded impairment losses on real estate of $418,000 attributable to the Fort Myers Healthcare Facilities, following a reduction in the expected sales price that occurred during the three months ended June 30, 2024. The fair value of the Fort Myers Healthcare Facilities was measured based on a third-party purchase offer for the assets, which resides within Level 2 of the fair value hierarchy. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land and buildings and improvements. Additionally, during the three and nine months ended September 30, 2024, the Company recognized a $792,000 loss on disposition from the Fort Myers Healthcare Facilities related to costs to sell.
During the nine months ended September 30, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $4,646,000, $2,667,000, and $2,038,000, respectively, as a result of the GenesisCare Amended Master Lease.
During the nine months ended September 30, 2023, the Company recorded impairment losses on real estate of $6,364,000 (including goodwill impairments of $1,238,000) as a result of GenesisCare announcing it had filed bankruptcy. In addition, during the nine months ended September 30, 2023, the Company recorded an impairment of in-place lease and above-market lease intangible assets on certain real estate properties formerly leased to GenesisCare of $592,000 and $260,000, respectively. The fair value of the real estate assets, which included the Fort Myers Healthcare Facilities, was measured based on third-party
purchase offers for the assets and resides within Level 2 of the fair value hierarchy. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related intangible assets.
Other Impairment Losses and Accelerated Amortization of Intangible Assets
In addition to the impairments and accelerated amortization of intangible assets disclosed above, the Company recorded the following additional impairments and accelerated amortization of intangible assets. During the nine months ended September 30, 2024, the Company recorded accelerated amortization of above-market lease intangible assets of $158,000, as a result of lease amendments. During the nine months ended September 30, 2023, the Company recorded goodwill impairment losses on real estate of $344,000, as a result of a lease termination at a multi-tenant property.
Impairment losses on real estate, goodwill impairments and disposition losses, if any, are recorded as impairment and disposition losses in the accompanying condensed consolidated statements of comprehensive income. Impairments and accelerated amortization of in-place leases are included in depreciation and amortization in the accompanying condensed consolidated statements of comprehensive income. Impairments and accelerated amortization of above-market leases are recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income. Impairments and accelerated amortization of below-market leases are recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.3
Intangible Assets, Net
 9 Months Ended
Sep. 30, 2024
Finite-Lived Intangible Assets, Net [Abstract]  
Intangible Assets, Net Intangible Assets, Net
Intangible assets, net, consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
 September 30, 2024December 31, 2023
In-place leases, net of accumulated amortization of $109,958 and $95,325, respectively (with a weighted average remaining life of 7.5 years and 7.8 years, respectively)
$125,216 $125,188 
Above-market leases, net of accumulated amortization of $7,378 and $7,131, respectively (with a weighted average remaining life of 6.0 years and 6.7 years, respectively)
5,766 9,811 
$130,982 $134,999 
The aggregate weighted average remaining life of the intangible assets was 7.4 years and 7.7 years as of September 30, 2024 and December 31, 2023, respectively.
Amortization of intangible assets was $5,266,000 and $5,424,000 for the three months ended September 30, 2024 and 2023, respectively, and $23,338,000 and $17,630,000 for the nine months ended September 30, 2024 and 2023, respectively. Amortization of in-place leases is included in depreciation and amortization, and amortization of above-market leases is recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.3
Intangible Liabilities, Net
 9 Months Ended
Sep. 30, 2024
Intangible Lease Liabilities, Net [Abstract]  
Intangible Liabilities, Net Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
September 30, 2024December 31, 2023
Below-market leases, net of accumulated amortization of $8,446 and $7,417, respectively (with a weighted average remaining life of 6.3 years and 7.4 years, respectively)
$7,384 $10,452 
Amortization of below-market leases was $315,000 and $373,000 for the three months ended September 30, 2024 and 2023, respectively, and $3,068,000 and $1,120,000 for the nine months ended September 30, 2024 and 2023, respectively. Amortization of below-market leases is recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases Leases
Lessor
The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.
Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

September 30, 2024(1)
Period ending December 31, 2024$41,341 
2025165,579 
2026162,301 
2027159,053 
2028154,680 
Thereafter837,475 
Total$1,520,429 
(1)The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of September 30, 2024.
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office.
The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.
The effects of the Company's operating leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets.
As of September 30, 2024, the Company's weighted average IBR for its operating leases was 5.5%. The weighted average remaining lease term for the Company's operating leases was 35.7 years as of September 30, 2024.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2024
Period ending December 31, 2024$685 
20252,791 
20262,739 
20272,705 
20282,716 
Thereafter106,039 
Total undiscounted rental payments117,675 
Less imputed interest(76,446)
Total lease liabilities$41,229 
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
Location in Condensed Consolidated Statements of Comprehensive Income2024202320242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$690 $682 $2,053 $2,045 
Corporate operating lease costsGeneral and administrative expenses185 175 561 551 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$205 $166 $624 $564 
Right-of-use assets obtained in exchange for new lease liabilities$405 $— $433 $— 
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
Leases Leases
Lessor
The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.
Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

September 30, 2024(1)
Period ending December 31, 2024$41,341 
2025165,579 
2026162,301 
2027159,053 
2028154,680 
Thereafter837,475 
Total$1,520,429 
(1)The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of September 30, 2024.
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office.
The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.
The effects of the Company's operating leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets.
As of September 30, 2024, the Company's weighted average IBR for its operating leases was 5.5%. The weighted average remaining lease term for the Company's operating leases was 35.7 years as of September 30, 2024.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2024
Period ending December 31, 2024$685 
20252,791 
20262,739 
20272,705 
20282,716 
Thereafter106,039 
Total undiscounted rental payments117,675 
Less imputed interest(76,446)
Total lease liabilities$41,229 
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
Location in Condensed Consolidated Statements of Comprehensive Income2024202320242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$690 $682 $2,053 $2,045 
Corporate operating lease costsGeneral and administrative expenses185 175 561 551 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$205 $166 $624 $564 
Right-of-use assets obtained in exchange for new lease liabilities$405 $— $433 $— 
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
v3.24.3
Other Assets
 9 Months Ended
Sep. 30, 2024
Other Assets [Abstract]  
Other Assets Other Assets
Other assets consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
 September 30, 2024December 31, 2023
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,720 and $1,917, respectively
$1,471 $2,271 
Leasing commissions, net of accumulated amortization of $263 and $191, respectively
1,796 593 
Restricted cash— 166 
Tenant receivables3,140 2,398 
Straight-line rent receivable56,730 53,248 
Prepaid and other assets3,412 4,089 
Derivative assets - interest rate swaps6,739 17,060 
$73,288 $79,825 
v3.24.3
Accounts Payable and Other Liabilities
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
Accounts Payable and Other Liabilities Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
 September 30, 2024December 31, 2023
Accounts payable and accrued expenses$7,154 $3,906 
Accrued interest expense1,340 1,714 
Accrued property taxes3,817 3,687 
Accrued personnel costs4,180 4,425 
Distributions payable to stockholders7,383 7,782 
Performance DSUs distributions payable401 1,140 
Tenant deposits1,789 877 
Deferred rental income9,917 6,393 
Derivative liabilities - interest rate swaps753 457 
$36,734 $30,381 
v3.24.3
Credit Facility
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Credit Facility Credit Facility
The Company's outstanding credit facility as of September 30, 2024 and December 31, 2023 consisted of the following (amounts in thousands):
Weighted
Average Contractual Rate(1)
September 30, 2024December 31, 2023
2026 Variable rate revolving line of credit—%$— $— 
2024 Variable rate term loan fixed through interest rate swaps—%— 250,000 
2027 Variable rate term loan fixed through interest rate swaps(2)
2.28%250,000 — 
2028 Variable rate term loan fixed through interest rate swaps(3)
4.18%275,000 275,000 
Total credit facility, principal amount outstanding3.28%525,000 525,000 
Unamortized deferred financing costs related to credit facility term loans(3,389)(1,847)
Total credit facility, net of deferred financing costs$521,611 $523,153 
(1)Weighted average contractual rate is as of September 30, 2024.
(2)Fixed through five interest rate swaps that mature on December 31, 2024.
(3)Fixed through six interest rate swaps that mature on January 31, 2028.
Significant activities regarding the credit facility during the nine months ended September 30, 2024 include:
•On March 20, 2024 the Company, the Operating Partnership, and certain of the Company's subsidiaries, entered into a senior unsecured amended and restated term loan agreement, or the 2027 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments of $250,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000. The maturity date for the 2027 Term Loan is March 20, 2027 and, at the Company's election, may be extended for a period of one year on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee. The 2027 Term Loan Agreement was entered into to replace the Company's prior term loan agreement, which was paid off in its entirety upon closing of the 2027 Term Loan Agreement.
•In connection with the pay-off of our prior term loan agreement and entering into the 2027 Term Loan Agreement, the Company recognized a loss on extinguishment of debt of $228,000 during the nine months ended September 30, 2024. The loss on extinguishment of debt was recognized in interest expense in the accompanying condensed consolidated statements of comprehensive income.
•On July 24, 2024, the Company borrowed $20,000,000 on its revolving line of credit to fund an acquisition.
•On September 10, 2024, the Company paid down $5,000,000 on its revolving line of credit with cash flows from operations.
•On September 30, 2024, the Company paid down $15,000,000 on its revolving line of credit with proceeds from dispositions.
The principal payments due on the credit facility as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Amount
Period ending December 31, 2024
$— 
2025— 
2026— 
2027250,000 
2028275,000 
Thereafter— 
$525,000 
v3.24.3
Fair Value
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Cash and cash equivalents, restricted cash, tenant receivables, prepaid and other assets, accounts payable and other liabilities—The Company considers the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization.
Credit facility—The outstanding principal of the credit facility was $525,000,000 and $525,000,000, which approximated its fair value due to the variable nature of the terms as of September 30, 2024 and December 31, 2023, respectively.
The fair value of the Company's credit facility is estimated based on the interest rates currently offered to the Company by its financial institutions.
Derivative instruments—The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company determined that the inputs used to value its interest rate swaps, with the exception of the credit valuation adjustment, fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of September 30, 2024, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.
Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or be liable for on disposition of the financial assets and liabilities.
The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 (amounts in thousands):
 September 30, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $6,739 $— $6,739 
Total assets at fair value$— $6,739 $— $6,739 
Liabilities:
Derivative liabilities - interest rate swaps$— $753 $— $753 
Total liabilities at fair value$— $753 $— $753 
 December 31, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $17,060 $— $17,060 
Total assets at fair value$— $17,060 $— $17,060 
Liabilities:
Derivative liabilities - interest rate swaps$— $457 $— $457 
Total liabilities at fair value$— $457 $— $457 
Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
Real Estate Assets— As of September 30, 2024, there were no real estate assets measured at fair value on a non-recurring basis. As of June 30, 2024, two real estate assets were measured at an aggregate fair value of $15,500,000 and resulted in the recognition of an impairment loss of $418,000 for the nine months ended September 30, 2024. The fair value was measured based on a third-party purchase offer for the assets, which resides within Level 2 of the fair value hierarchy. The two real estate assets were sold during the three months ended September 30, 2024.
As of December 31, 2023, six real estate assets were measured at an aggregate fair value of $37,600,000 and resulted in the recognition of an impairment loss of $20,758,000 for the year ended December 31, 2023. The fair value of three real estate assets of $21,400,000 were measured based on third-party purchase offers for the assets, which reside within Level 2 of the fair value hierarchy, and were sold in 2024. The fair value of three real estate assets of $16,200,000 were measured using a direct capitalization method or comparable sales information, which reside within Level 3 of the fair value hierarchy.
The significant unobservable inputs for the Level 3 measurements include:
Significant Unobservable InputsDecember 31, 2023
Overall capitalization rate8.5%
Market rent per square foot$45.00
Range of comparable sale price per square foot$60.86 $98.04 
v3.24.3
Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.
For derivatives designated and qualifying as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $4,889,000 will be reclassified from accumulated other comprehensive income as a reduction to interest expense.
The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):
Derivatives
Designated as
Hedging
Instruments		Weighted Average Fixed Interest RateEffective
Dates		Maturity
Dates		September 30, 2024December 31, 2023
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)
0.93%05/01/2022 to
05/02/2022		12/31/2024$250,000 $2,307 $— $250,000 $9,172 $— 
Interest rate swaps(1)
2.83%05/02/2022 to 05/01/20231/31/2028275,000 4,432 (753)275,000 7,888 (457)
$525,000 $6,739 $(753)$525,000 $17,060 $(457)
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks.
The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of (Loss) Income Recognized
in Other Comprehensive (Loss) Income on Derivatives		Location of (Loss) Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended September 30, 2024
Interest rate swaps$(6,843)Interest expense$4,527 $(5,468)
Three Months Ended September 30, 2023
Interest rate swaps$6,780 Interest expense$4,465 $(5,653)
Nine Months Ended September 30, 2024
Interest rate swaps$2,943 Interest expense$13,560 $(15,955)
Nine Months Ended September 30, 2023
Interest rate swaps$13,550 Interest expense$12,117 $(16,939)
Credit Risk-Related Contingent Features
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of both September 30, 2024 and December 31, 2023, the Company had no derivatives with fair value in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of both September 30, 2024 and December 31, 2023, there were no termination events or events of default related to the interest rate swaps.
Tabular Disclosure Offsetting Derivatives
The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of September 30, 2024 and December 31, 2023 (amounts in thousands):
Offsetting of Derivative Assets    
    Gross Amounts Not Offset in the Balance Sheet 
 Gross
Amounts of
Recognized
Assets		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Assets Presented in
the Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
September 30, 2024$6,739 $— $6,739 $(753)$— $5,986 
December 31, 2023$17,060 $— $17,060 $(457)$— $16,603 
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
September 30, 2024$753 $— $753 $(753)$— $— 
December 31, 2023$457 $— $457 $(457)$— $— 
v3.24.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
On April 8, 2024, the Company amended its charter to effect a one-for-four reverse stock split, effective May 1, 2024. On June 13, 2024, authorized but unissued shares of Class I Common Stock, Class T Common Stock and Class T2 Common Stock were reclassified into additional shares of Class A Common Stock. Class A Common Stock was then immediately renamed “Common Stock” and is the sole class of stock traded on the NYSE. See Note 1—"Organization and Business Operations" for further details.
Distributions Payable
As of September 30, 2024, the Company had distributions payable of $7,383,000, which were paid in cash on October 15, 2024.
On April 5, 2024, the board of directors, or the Board, approved the termination of the distribution reinvestment plan, effective May 1, 2024.
Share Repurchases
During the nine months ended September 30, 2024, the Company repurchased 283,694 Class A shares, Class I shares and Class T shares of Common Stock, after giving effect to the Reverse Stock Split (246,206 Class A shares, 7,574 Class I shares and 29,914 Class T shares), for an aggregate purchase price of $8,486,000 (an average of $29.92 per share). Additionally, during the nine months ended September 30, 2024, the Company purchased 2,212,389 shares of Common Stock as a result of the Tender Offer described below. During the nine months ended September 30, 2023, the Company repurchased 286,268 Class A shares, Class I shares and Class T shares of Common Stock, after giving effect to the Reverse Stock Split (219,965 Class A shares, 25,643 Class I shares and 40,660 Class T shares), for an aggregate purchase price of $9,376,000 (an average of $32.75 per share).
Share Repurchase Program
On August 16, 2024, the Company's Board authorized a share repurchase program of up to the lesser of 1,500,000 shares of the Company's outstanding Common Stock, or $25,000,000 in gross purchase proceeds for a period of 12 months from August 16, 2024, or the Share Repurchase Program. Repurchases of Common Stock under the Share Repurchase Program may be made from time to time in the open market, in privately negotiated purchases, in accelerated share repurchase programs or by any other lawful means. The number of shares of Common Stock purchased and the timing of any purchases will depend on a number of factors, including the price and availability of Common Stock and general market conditions. The Company did not repurchase any shares under the Share Repurchase Program during the three months ended September 30, 2024. Therefore, as of September 30, 2024, up to $25,000,000 of the Company's Common Stock remained available for repurchase under the Share Repurchase Program.
Terminated Share Repurchase Program
The Company’s Amended and Restated Share Repurchase Program, or the Terminated SRP, allowed for repurchases of shares of the Company’s Common Stock upon meeting certain criteria. On April 5, 2024, the Board approved the suspension of the Terminated SRP, effective immediately, and the termination of the Terminated SRP, effective upon the Listing.
"Dutch Auction" Tender Offer
On June 13, 2024, in conjunction with the Listing, the Company commenced the Tender Offer to purchase shares of its Common Stock for cash at a price per share of not greater than $24.00 nor less than $22.60, net to the seller in cash, less any applicable withholding taxes and without interest, for a maximum aggregate purchase price of no more than $50,000,000. The Tender Offer expired on July 19, 2024. As a result of the Tender Offer, the Company accepted for purchase 2,212,389 shares of Common Stock (which represented approximately 3.9% of the total number of shares of Common Stock outstanding as of July 19, 2024) at a purchase price of $22.60 per share, for an aggregate purchase price of approximately $50,000,000, excluding all related costs and fees. The Company incurred $2,093,000 of costs and fees related to the Tender Offer which are recorded as a reduction in equity on the accompanying condensed financial statements. The Company funded the Tender Offer and related costs and fees with its available cash.
Accumulated Other Comprehensive Income
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the nine months ended September 30, 2024 and 2023 (amounts in thousands):
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2023$16,603 
Other comprehensive income before reclassification2,943 
Amount of income reclassified from accumulated other comprehensive income to net income(13,560)
Other comprehensive loss(10,617)
Balance as of September 30, 2024$5,986 
Unrealized Income
 on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive income before reclassification13,550 
Amount of income reclassified from accumulated other comprehensive income to net income(12,117)
Other comprehensive income1,433 
Balance as of September 30, 2023$29,423 
The following table presents reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2024 and 2023 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Nine Months Ended
September 30,
20242023
Interest rate swap contracts$(13,560)

$(12,117)Interest expense
v3.24.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The Company calculates basic and diluted earnings per share using the two-class method. Basic earnings per share is computed based on the weighted average shares of the Company's Common Stock outstanding for the period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities, which include non-vested shares of restricted Common Stock and performance-based deferred stock unit awards, or Performance DSUs. The non-vested shares of restricted Common Stock contain non-forfeitable dividend distribution rights and are considered participating securities. The Performance DSUs are also entitled to dividend equivalents which are paid to the grantee only in the event that the applicable performance criteria is achieved and the Performance DSUs vest.
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method (amounts in thousands, except share data and per share amounts):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Earnings:
Net income attributable to common stockholders
$11,935 $14,983 $31,543 $33,038 
Less: Income allocated to participating securities
(80)(74)(171)(163)
Net income used in basic earnings per share
11,855 14,909 31,372 32,875 
Add back: Income allocated to participating securities
80 74 171 163 
Net income used in diluted earnings per share
$11,935 $14,983 $31,543 $33,038 
Weighted Average Shares:
Basic weighted average number of common shares outstanding(1)
55,571,298 56,859,076 56,634,376 56,748,751 
Dilutive effect of weighted average shares of non-vested restricted common stock(1)
373,047 280,369 308,968 281,006 
Dilutive effect of weighted average shares of Performance DSUs(1)
137,273 181,220 151,393 181,220 
Diluted weighted average number of common shares outstanding(1)
56,081,618 57,320,665 57,094,737 57,210,977 
Net income per share attributable to common stockholders:
Basic(1)
$0.21 $0.26 $0.55 $0.58 
Diluted(1)
$0.21 $0.26 $0.55 $0.58 
(1)     Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
Stock-based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
On March 6, 2020, the Board approved the A&R Incentive Plan pursuant to which the Company has the authority and power to grant awards of restricted shares of its Common Stock to its directors, executive officers, and employees.
During the three months ended September 30, 2024, the Company granted its employees, excluding its executive officers, an aggregate of 89,373 time-based vesting restricted shares of Common Stock, which, subject to each employee's continuous employment through the applicable vesting dates, will vest 25% annually, commencing on July 2, 2025. As of September 30, 2024, there was $1,646,000 of total unrecognized stock-based compensation expense related to these awards, which will be recognized over the vesting period. These awards were granted under and subject to the terms of the A&R Incentive Plan and an award agreement.
Additionally, during the three months ended September 30, 2024, the Company granted an aggregate of 24,245 shares of restricted Common Stock to our five independent directors in connection with their annual compensation. Each independent director received 4,849 shares of restricted Common Stock that will vest on July 2, 2025. These awards were granted under and subject to the terms of our Amended and Restated 2014 Restricted Share Plan and an award agreement.
The Company recognized accelerated stock-based compensation expense of $12,000 for the three months ended September 30, 2024. The Company recognized accelerated stock-based compensation expense of $875,000 for the nine months
ended September 30, 2024, primarily as a result of the acceleration of awards pursuant to severance agreements with two departed executive officers. The Company recognized total stock-based compensation expense of $1,311,000 and $1,228,000, respectively, for the three months ended September 30, 2024 and 2023, and $3,798,000 and $3,721,000, respectively, for the nine months ended September 30, 2024 and 2023. Stock-based compensation expense is reported in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income, and forfeitures are recorded as they occur.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
In the ordinary course of business, the Company may become subject to litigation or claims. As of September 30, 2024, there were, and currently there are, no material pending legal proceedings to which the Company is a party. While the resolution of a lawsuit or proceeding may have an impact to the Company's financial results for the period in which it is resolved, the Company believes that the final resolution of the lawsuits or proceedings in which it is currently involved, either individually or in the aggregate, will not have a material adverse effect on its financial position, results of operations or liquidity.
v3.24.3
Subsequent Events
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Distributions Paid to Stockholders
On October 15, 2024, the Company paid cash distributions of $7,383,000 to the Company's stockholders of record as of the close of business on September 30, 2024.
Distributions Authorized
On October 18, 2024, the Board approved and authorized a distribution payable on November 15, 2024, to the Company's stockholders of record as of the close of business on October 31, 2024. The distribution will be equal to $0.1333 per share of Common Stock, representing an annualized amount of $1.60 per share.
Change in Distribution Frequency
On October 18, 2024, the Board approved a change in the frequency of the Company's distributions to its stockholders from monthly distributions to quarterly distributions, effective in 2025, with the first quarterly distribution to be paid in the Company's first fiscal quarter of 2025. Accordingly, the Company expects to announce the amount, record date, and payment date of any such distributions at a later date.
Mezzanine Loans
On November 5, 2024, the Company entered into two mezzanine loans for the development of an inpatient rehabilitation facility and a behavioral healthcare facility in Lynchburg, Virginia, or the Mezzanine Loans. The Mezzanine Loans have total loan amounts of $12,543,000 and $5,000,000, respectively, and a maturity date of November 5, 2029. The Mezzanine Loans include purchase options for the Company for both the inpatient rehabilitation facility and the behavioral healthcare facility upon completion of construction.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 11,935 $ 14,983 $ 31,543 $ 33,038
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Principles of Consolidation and Basis of Presentation
Principles of Consolidation and Basis of Presentation
The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Cash consists of demand deposits at commercial banks. Cash equivalents consist of highly liquid money market funds with original maturities of three months or less at the time of purchase. Restricted cash consists of cash held in an escrow account in accordance with a tenant's lease agreement. Restricted cash is reported in other assets in the accompanying condensed consolidated balance sheets.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
Segment Reporting
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, or ASU 2023-07, to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption of ASU 2023-07 is permitted. The Company does not expect that the adoption of ASU 2023-07 will have a material impact on its consolidated financial statements. The Company operates under a single reportable segment and compliance with these new disclosure requirements will begin with the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
v3.24.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands):
Nine Months Ended
September 30,
20242023
Beginning of period:
Cash and cash equivalents$202,019 $12,917 
Restricted cash166 166 
Cash, cash equivalents and restricted cash$202,185 $13,083 
End of period:
Cash and cash equivalents$28,606 $14,563 
Restricted cash— 

166 
Cash, cash equivalents and restricted cash$28,606 $14,729 
Schedule of Restrictions on Cash and Cash Equivalents
The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands):
Nine Months Ended
September 30,
20242023
Beginning of period:
Cash and cash equivalents$202,019 $12,917 
Restricted cash166 166 
Cash, cash equivalents and restricted cash$202,185 $13,083 
End of period:
Cash and cash equivalents$28,606 $14,563 
Restricted cash— 

166 
Cash, cash equivalents and restricted cash$28,606 $14,729 
v3.24.3
Real Estate (Tables)
 9 Months Ended
Sep. 30, 2024
Real Estate [Abstract]  
Schedule of Consideration Transferred for Properties Acquired
The following table summarizes the cash consideration transferred, including acquisition costs, and the purchase price allocation for acquisitions during the nine months ended September 30, 2024 (amounts in thousands):
Property Description Date AcquiredOwnership Percentage
Cash Consideration Transferred
(amount in thousands)
Brownsburg Healthcare Facility 02/26/2024100%$39,115 
Cave Creek Healthcare Facility03/20/2024100%19,355 
Marana Healthcare Facility03/20/2024100%16,156 
Surprise Healthcare Facility03/20/2024100%18,602 
Tucson Healthcare Facility V03/20/2024100%15,994 
Weslaco Healthcare Facility03/20/2024100%15,713 
Reading Healthcare Facility05/21/2024100%10,754 
Fort Smith Healthcare Facility07/25/2024100%28,364 
Total $164,053 
Schedule of Allocation of Acquisitions
Total
Land$8,821 
Building and improvements113,365 
Tenant improvements22,194 
In-place leases19,468 
Right-of-use assets638 
Total assets acquired164,486 
Lease liabilities(433)
Total liabilities acquired(433)
Net assets acquired$164,053 
v3.24.3
Intangible Assets, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Finite-Lived Intangible Assets, Net [Abstract]  
Schedule of Intangible Assets, Net
Intangible assets, net, consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
 September 30, 2024December 31, 2023
In-place leases, net of accumulated amortization of $109,958 and $95,325, respectively (with a weighted average remaining life of 7.5 years and 7.8 years, respectively)
$125,216 $125,188 
Above-market leases, net of accumulated amortization of $7,378 and $7,131, respectively (with a weighted average remaining life of 6.0 years and 6.7 years, respectively)
5,766 9,811 
$130,982 $134,999 
v3.24.3
Intangible Liabilities, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Intangible Lease Liabilities, Net [Abstract]  
Schedule of Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
September 30, 2024December 31, 2023
Below-market leases, net of accumulated amortization of $8,446 and $7,417, respectively (with a weighted average remaining life of 6.3 years and 7.4 years, respectively)
$7,384 $10,452 
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Schedule of Future Minimum Rent to Lessor from Operating Leases
Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

September 30, 2024(1)
Period ending December 31, 2024$41,341 
2025165,579 
2026162,301 
2027159,053 
2028154,680 
Thereafter837,475 
Total$1,520,429 
(1)The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of September 30, 2024.
Schedule of Future Minimum Rent from Lessee for Operating Leases
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2024
Period ending December 31, 2024$685 
20252,791 
20262,739 
20272,705 
20282,716 
Thereafter106,039 
Total undiscounted rental payments117,675 
Less imputed interest(76,446)
Total lease liabilities$41,229 
Schedule of Lease Cost
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
Location in Condensed Consolidated Statements of Comprehensive Income2024202320242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$690 $682 $2,053 $2,045 
Corporate operating lease costsGeneral and administrative expenses185 175 561 551 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$205 $166 $624 $564 
Right-of-use assets obtained in exchange for new lease liabilities$405 $— $433 $— 
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
v3.24.3
Other Assets (Tables)
 9 Months Ended
Sep. 30, 2024
Other Assets [Abstract]  
Schedule of Other Assets
Other assets consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
 September 30, 2024December 31, 2023
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,720 and $1,917, respectively
$1,471 $2,271 
Leasing commissions, net of accumulated amortization of $263 and $191, respectively
1,796 593 
Restricted cash— 166 
Tenant receivables3,140 2,398 
Straight-line rent receivable56,730 53,248 
Prepaid and other assets3,412 4,089 
Derivative assets - interest rate swaps6,739 17,060 
$73,288 $79,825 
v3.24.3
Accounts Payable and Other Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
 September 30, 2024December 31, 2023
Accounts payable and accrued expenses$7,154 $3,906 
Accrued interest expense1,340 1,714 
Accrued property taxes3,817 3,687 
Accrued personnel costs4,180 4,425 
Distributions payable to stockholders7,383 7,782 
Performance DSUs distributions payable401 1,140 
Tenant deposits1,789 877 
Deferred rental income9,917 6,393 
Derivative liabilities - interest rate swaps753 457 
$36,734 $30,381 
v3.24.3
Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Credit Facility
The Company's outstanding credit facility as of September 30, 2024 and December 31, 2023 consisted of the following (amounts in thousands):
Weighted
Average Contractual Rate(1)
September 30, 2024December 31, 2023
2026 Variable rate revolving line of credit—%$— $— 
2024 Variable rate term loan fixed through interest rate swaps—%— 250,000 
2027 Variable rate term loan fixed through interest rate swaps(2)
2.28%250,000 — 
2028 Variable rate term loan fixed through interest rate swaps(3)
4.18%275,000 275,000 
Total credit facility, principal amount outstanding3.28%525,000 525,000 
Unamortized deferred financing costs related to credit facility term loans(3,389)(1,847)
Total credit facility, net of deferred financing costs$521,611 $523,153 
(1)Weighted average contractual rate is as of September 30, 2024.
(2)Fixed through five interest rate swaps that mature on December 31, 2024.
(3)Fixed through six interest rate swaps that mature on January 31, 2028.
Schedule of Future Principal Payments Due on Debt
The principal payments due on the credit facility as of September 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Amount
Period ending December 31, 2024
$— 
2025— 
2026— 
2027250,000 
2028275,000 
Thereafter— 
$525,000 
v3.24.3
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 (amounts in thousands):
 September 30, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $6,739 $— $6,739 
Total assets at fair value$— $6,739 $— $6,739 
Liabilities:
Derivative liabilities - interest rate swaps$— $753 $— $753 
Total liabilities at fair value$— $753 $— $753 
 December 31, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $17,060 $— $17,060 
Total assets at fair value$— $17,060 $— $17,060 
Liabilities:
Derivative liabilities - interest rate swaps$— $457 $— $457 
Total liabilities at fair value$— $457 $— $457 
Schedule of Significant Unobservable Inputs
The significant unobservable inputs for the Level 3 measurements include:
Significant Unobservable InputsDecember 31, 2023
Overall capitalization rate8.5%
Market rent per square foot$45.00
Range of comparable sale price per square foot$60.86 $98.04 
v3.24.3
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the Notional Amount and Fair Value of Derivative Instruments
The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):
Derivatives
Designated as
Hedging
Instruments		Weighted Average Fixed Interest RateEffective
Dates		Maturity
Dates		September 30, 2024December 31, 2023
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)
0.93%05/01/2022 to
05/02/2022		12/31/2024$250,000 $2,307 $— $250,000 $9,172 $— 
Interest rate swaps(1)
2.83%05/02/2022 to 05/01/20231/31/2028275,000 4,432 (753)275,000 7,888 (457)
$525,000 $6,739 $(753)$525,000 $17,060 $(457)
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
Schedule of Income and Losses Recognized on Derivative Instruments
The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of (Loss) Income Recognized
in Other Comprehensive (Loss) Income on Derivatives		Location of (Loss) Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended September 30, 2024
Interest rate swaps$(6,843)Interest expense$4,527 $(5,468)
Three Months Ended September 30, 2023
Interest rate swaps$6,780 Interest expense$4,465 $(5,653)
Nine Months Ended September 30, 2024
Interest rate swaps$2,943 Interest expense$13,560 $(15,955)
Nine Months Ended September 30, 2023
Interest rate swaps$13,550 Interest expense$12,117 $(16,939)
Schedule of Offsetting of Derivative Assets The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of September 30, 2024 and December 31, 2023 (amounts in thousands):
Offsetting of Derivative Assets    
    Gross Amounts Not Offset in the Balance Sheet 
 Gross
Amounts of
Recognized
Assets		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Assets Presented in
the Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
September 30, 2024$6,739 $— $6,739 $(753)$— $5,986 
December 31, 2023$17,060 $— $17,060 $(457)$— $16,603 
Schedule of Offsetting of Derivative Liabilities
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
September 30, 2024$753 $— $753 $(753)$— $— 
December 31, 2023$457 $— $457 $(457)$— $— 
v3.24.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the nine months ended September 30, 2024 and 2023 (amounts in thousands):
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2023$16,603 
Other comprehensive income before reclassification2,943 
Amount of income reclassified from accumulated other comprehensive income to net income(13,560)
Other comprehensive loss(10,617)
Balance as of September 30, 2024$5,986 
Unrealized Income
 on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive income before reclassification13,550 
Amount of income reclassified from accumulated other comprehensive income to net income(12,117)
Other comprehensive income1,433 
Balance as of September 30, 2023$29,423 
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The following table presents reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2024 and 2023 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Nine Months Ended
September 30,
20242023
Interest rate swap contracts$(13,560)

$(12,117)Interest expense
v3.24.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per share using the two-class method (amounts in thousands, except share data and per share amounts):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Earnings:
Net income attributable to common stockholders
$11,935 $14,983 $31,543 $33,038 
Less: Income allocated to participating securities
(80)(74)(171)(163)
Net income used in basic earnings per share
11,855 14,909 31,372 32,875 
Add back: Income allocated to participating securities
80 74 171 163 
Net income used in diluted earnings per share
$11,935 $14,983 $31,543 $33,038 
Weighted Average Shares:
Basic weighted average number of common shares outstanding(1)
55,571,298 56,859,076 56,634,376 56,748,751 
Dilutive effect of weighted average shares of non-vested restricted common stock(1)
373,047 280,369 308,968 281,006 
Dilutive effect of weighted average shares of Performance DSUs(1)
137,273 181,220 151,393 181,220 
Diluted weighted average number of common shares outstanding(1)
56,081,618 57,320,665 57,094,737 57,210,977 
Net income per share attributable to common stockholders:
Basic(1)
$0.21 $0.26 $0.55 $0.58 
Diluted(1)
$0.21 $0.26 $0.55 $0.58 
(1)     Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
Organization and Business Operations (Details)
 9 Months Ended
Jul. 19, 2024
USD ($)
$ / shares
Jun. 13, 2024
USD ($)
$ / shares
shares
Apr. 08, 2024
Sep. 30, 2024
USD ($)
$ / shares
shares
Sep. 30, 2023
USD ($)
Aug. 16, 2024
USD ($)
May 01, 2024
$ / shares
Apr. 30, 2024
$ / shares
Dec. 31, 2023
$ / shares
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Common stock, par value (in dollars per share) | $ / shares   $ 0.01   $ 0.01     $ 0.01 $ 0.04 $ 0.01
Reverse stock split, conversion ratio     0.25            
Share repurchase program, authorized amount           $ 25,000,000      
Repurchase of common stock (in shares) | shares   2,212,389              
Common stock outstanding percentage 0.039                
Repurchase of common stock $ 50,000,000                
Tender offer repurchase of common stock                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Share repurchase program, authorized amount   $ 50,000,000              
Repurchase of common stock (in shares) | shares       2,212,389          
Purchase price (in dollars per share) | $ / shares $ 22.60                
Repurchase of common stock       $ 51,480,000 $ 0        
Tender offer repurchase cost $ 2,093,000                
Maximum | Tender offer repurchase of common stock                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Repurchase of common stock, average price per share (in dollars per share) | $ / shares   $ 24.00              
Minimum | Tender offer repurchase of common stock                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Repurchase of common stock, average price per share (in dollars per share) | $ / shares   $ 22.60              
Operating Partnership                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Ownership interest (as a percentage)       100.00%          
v3.24.3
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 28,606 $ 202,019 $ 14,563 $ 12,917
Restricted cash 0 166 166 166
Cash, cash equivalents and restricted cash $ 28,606 $ 202,185 $ 14,729 $ 13,083
v3.24.3
Real Estate - Narrative (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 25, 2024
USD ($)
property
Mar. 27, 2024
USD ($)
property
Mar. 26, 2024
property
Jan. 31, 2024
USD ($)
property
Sep. 30, 2024
USD ($)
tenant
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
tenant
property
acquisition
Sep. 30, 2023
USD ($)
Real Estate [Line Items]                
Number of real estate properties acquired | property             8  
Number of transactions | acquisition             4  
Capitalized acquisition costs             $ 717  
Proceeds from real estate dispositions             16,120 $ 12,388
(Loss) gain on real estate disposition         $ 0 $ 1 76 22
Impairment and disposition losses         792 $ 0 1,210 6,708
Offering cost             26 $ 6
Impairment of intangible assets             $ 158  
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]             Impairment and disposition losses Impairment and disposition losses
Impairment loss on goodwill               $ 344
Fort Myers Healthcare Facilities                
Real Estate [Line Items]                
(Loss) gain on real estate disposition         $ 792   $ 792  
Impairment loss             $ 418  
One Tenant | Revenue | Customer Concentration Risk                
Real Estate [Line Items]                
Number of major tenants | tenant         1   1  
Post Acute Medical LLC and affiliates | Revenue | Customer Concentration Risk                
Real Estate [Line Items]                
Concentration risk, percentage             14.70%  
GenesisCare Master Lease                
Real Estate [Line Items]                
Number of tenant properties | property     17       6  
Number of tenant properties removed | property   10            
Number of remaining tenant properties | property   7            
Straight line basis rental revenue         $ 57   $ 117  
Impairment loss               6,364
Impairment of lease liabilities             2,038  
Impairment loss on goodwill               1,238
Severance fees   $ 2,000            
GenesisCare Master Lease | In-place leases                
Real Estate [Line Items]                
Impairment of intangible assets             4,646 592
GenesisCare Master Lease | Above-market leases                
Real Estate [Line Items]                
Impairment of intangible assets             2,667 $ 260
GenesisCare Master Lease | Fort Myers Healthcare Facilities                
Real Estate [Line Items]                
Number of real estate properties | property 2              
Disposal Group, Disposed of by Sale, Not Discontinued Operations                
Real Estate [Line Items]                
Aggregate sales price $ 15,500     $ 1,500        
Proceeds from real estate dispositions 14,681     1,439        
(Loss) gain on real estate disposition       $ 76        
Lease income, deferred rent             902  
Number of real estate properties | property       1        
Termination lease income (losses)             $ 4,098  
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Fort Myers Healthcare Facilities                
Real Estate [Line Items]                
(Loss) gain on real estate disposition $ 792              
v3.24.3
Real Estate - Schedule of Consideration Transferred for Properties Acquired (Details) - USD ($)
$ in Thousands
 9 Months Ended
Jul. 25, 2024
May 21, 2024
Mar. 20, 2024
Feb. 26, 2024
Sep. 30, 2024
Business Acquisition [Line Items]          
Cash Consideration transferred         $ 164,053
Brownsburg Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage       100.00%  
Cash Consideration transferred       $ 39,115  
Cave Creek Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage     100.00%    
Cash Consideration transferred     $ 19,355    
Marana Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage     100.00%    
Cash Consideration transferred     $ 16,156    
Surprise Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage     100.00%    
Cash Consideration transferred     $ 18,602    
Tucson Healthcare Facility V          
Business Acquisition [Line Items]          
Ownership Percentage     100.00%    
Cash Consideration transferred     $ 15,994    
Weslaco Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage     100.00%    
Cash Consideration transferred     $ 15,713    
Reading Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage   100.00%      
Cash Consideration transferred   $ 10,754      
Fort Smith Healthcare Facility          
Business Acquisition [Line Items]          
Ownership Percentage 100.00%        
Cash Consideration transferred $ 28,364        
v3.24.3
Real Estate - Schedule of Allocation of Acquisitions (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Real Estate [Abstract]  
Land $ 8,821
Building and improvements 113,365
Tenant improvements 22,194
In-place leases 19,468
Right-of-use assets 638
Total assets acquired 164,486
Lease liabilities (433)
Total liabilities acquired (433)
Net assets acquired $ 164,053
v3.24.3
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 117,336 $ 102,456
Weighted average remaining useful life of intangible assets (in years) 7 years 4 months 24 days 7 years 8 months 12 days
Intangible assets, net of accumulated amortization $ 130,982 $ 134,999
In-place leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 109,958 $ 95,325
Weighted average remaining useful life of intangible assets (in years) 7 years 6 months 7 years 9 months 18 days
Intangible assets, net of accumulated amortization $ 125,216 $ 125,188
Above-market leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 7,378 $ 7,131
Weighted average remaining useful life of intangible assets (in years) 6 years 6 years 8 months 12 days
Intangible assets, net of accumulated amortization $ 5,766 $ 9,811
v3.24.3
Intangible Assets, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Finite-Lived Intangible Assets, Net [Abstract]          
Weighted average remaining useful life of intangible assets (in years)     7 years 4 months 24 days   7 years 8 months 12 days
Amortization of intangible assets $ 5,266 $ 5,424 $ 23,338 $ 17,630  
v3.24.3
Intangible Liabilities, Net - Schedule of Intangible Liabilities, Net (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Intangible Lease Liabilities, Net [Abstract]    
Accumulated amortization of below-market leases $ 8,446 $ 7,417
Weighted average remaining life of below-market leases 6 years 3 months 18 days 7 years 4 months 24 days
Below-market leases, net of accumulated amortization $ 7,384 $ 10,452
v3.24.3
Intangible Liabilities, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Intangible Lease Liabilities, Net [Abstract]        
Amortization of below-market leases $ 315 $ 373 $ 3,068 $ 1,120
v3.24.3
Leases - Schedule of Future Minimum Rent to Lessor from Operating Leases (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Leases [Abstract]  
Period ending December 31, 2024 $ 41,341
2025 165,579
2026 162,301
2027 159,053
2028 154,680
Thereafter 837,475
Total $ 1,520,429
v3.24.3
Leases - Narrative (Details)
Sep. 30, 2024
Leases [Abstract]  
Weighted average IBR 5.50%
Weighted average remaining lease term 35 years 8 months 12 days
v3.24.3
Leases - Schedule of Rent Payments from Lessee (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
Period ending December 31, 2024 $ 685  
2025 2,791  
2026 2,739  
2027 2,705  
2028 2,716  
Thereafter 106,039  
Total undiscounted rental payments 117,675  
Less imputed interest (76,446)  
Total lease liabilities $ 41,229 $ 41,158
Weighted average IBR 5.50%  
Weighted average remaining lease term 35 years 8 months 12 days  
v3.24.3
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Supplemental disclosure of cash flows information:        
Operating cash outflows for operating leases $ 205 $ 166 $ 624 $ 564
Right-of-use assets obtained in exchange for new lease liabilities 405 0 433 0
Rental expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs 690 682 2,053 2,045
General and administrative expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs $ 185 $ 175 $ 561 $ 551
v3.24.3
Other Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Other Assets [Abstract]    
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,720 and $1,917, respectively $ 1,471 $ 2,271
Leasing commissions, net of accumulated amortization of $263 and $191, respectively 1,796 593
Restricted cash 0 166
Tenant receivables 3,140 2,398
Straight-line rent receivable 56,730 53,248
Prepaid and other assets 3,412 4,089
Derivative assets - interest rate swaps 6,739 17,060
Total other assets 73,288 79,825
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization 2,720 1,917
Leasing commissions, accumulated amortization $ 263 $ 191
v3.24.3
Accounts Payable and Other Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accounts payable and accrued expenses $ 7,154 $ 3,906
Accrued interest expense 1,340 1,714
Accrued property taxes 3,817 3,687
Accrued personnel costs 4,180 4,425
Distributions payable to stockholders 7,383 7,782
Performance DSUs distributions payable 401 1,140
Tenant deposits 1,789 877
Deferred rental income 9,917 6,393
Derivative liabilities - interest rate swaps 753 457
Total accounts payable and other liabilities $ 36,734 $ 30,381
v3.24.3
Credit Facility - Schedule of Credit Facility (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
swap
Dec. 31, 2023
USD ($)
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 3.28%  
Total credit facility, principal amount outstanding $ 525,000 $ 525,000
Unamortized deferred financing costs related to credit facility term loans (3,389) (1,847)
Total credit facility, net of deferred financing costs $ 521,611 523,153
Revolving Line of Credit | 2026 Variable rate revolving line of credit    
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 0.00%  
Total credit facility, principal amount outstanding $ 0 0
Term Loan | 2024 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 0.00%  
Total credit facility, principal amount outstanding $ 0 250,000
Term Loan | 2027 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 2.28%  
Total credit facility, principal amount outstanding $ 250,000 0
Number of interest rates swaps | swap 5  
Term Loan | 2028 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 4.18%  
Total credit facility, principal amount outstanding $ 275,000 $ 275,000
Number of interest rates swaps | swap 6  
v3.24.3
Credit Facility - Narrative (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 10, 2024
USD ($)
Jul. 24, 2024
USD ($)
Sep. 30, 2024
USD ($)
extension
Sep. 30, 2023
USD ($)
Mar. 20, 2024
USD ($)
Line of Credit Facility [Line Items]            
2027 term loan, extension period       1 year    
Number of extensions | extension       2    
Loss on extinguishment of debt       $ 228 $ 0  
Proceeds from credit facility     $ 20,000 270,000 50,000  
Paydown on credit facility $ 15,000 $ 5,000   $ 270,000 $ 28,000  
2027 Term Loan | Term Loan            
Line of Credit Facility [Line Items]            
Commitments available           $ 250,000
Maximum borrowing capacity           $ 500,000
v3.24.3
Credit Facility - Schedule of Principal Payments Due on Credit Facility (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Debt Disclosure [Abstract]  
Period ending December 31, 2024 $ 0
2025 0
2026 0
2027 250,000
2028 275,000
Thereafter 0
Total $ 525,000
v3.24.3
Fair Value - Narrative (Details)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2024
USD ($)
property
Dec. 31, 2023
USD ($)
property
Jun. 30, 2024
USD ($)
property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total credit facility, principal amount outstanding $ 525,000 $ 525,000  
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accounts payable and other liabilities Accounts payable and other liabilities  
Real estate assets $ 1,720,638 $ 1,628,652  
Impairment loss on real estate $ 418 20,758  
Number of real estates assets | property     2
Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Real estate assets   $ 37,600  
Number of real estates assets | property 0 6 2
Significant Other Observable Inputs (Level 2) | Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Real estate assets   $ 21,400 $ 15,500
Number of real estates assets | property   3  
Significant Unobservable Inputs (Level 3) | Nonrecurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Real estate assets   $ 16,200  
Number of real estates assets | property   3  
v3.24.3
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Assets:    
Derivative assets - interest rate swaps $ 6,739 $ 17,060
Liabilities:    
Derivative liabilities - interest rate swaps 753 457
Recurring basis    
Assets:    
Total assets at fair value 6,739 17,060
Liabilities:    
Total liabilities at fair value 753 457
Recurring basis | Interest rate swaps    
Assets:    
Derivative assets - interest rate swaps 6,739 17,060
Liabilities:    
Derivative liabilities - interest rate swaps 753 457
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis    
Assets:    
Total assets at fair value 0 0
Liabilities:    
Total liabilities at fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | Interest rate swaps    
Assets:    
Derivative assets - interest rate swaps 0 0
Liabilities:    
Derivative liabilities - interest rate swaps 0 0
Significant Other Observable Inputs (Level 2) | Recurring basis    
Assets:    
Total assets at fair value 6,739 17,060
Liabilities:    
Total liabilities at fair value 753 457
Significant Other Observable Inputs (Level 2) | Recurring basis | Interest rate swaps    
Assets:    
Derivative assets - interest rate swaps 6,739 17,060
Liabilities:    
Derivative liabilities - interest rate swaps 753 457
Significant Unobservable Inputs (Level 3) | Recurring basis    
Assets:    
Total assets at fair value 0 0
Liabilities:    
Total liabilities at fair value 0 0
Significant Unobservable Inputs (Level 3) | Recurring basis | Interest rate swaps    
Assets:    
Derivative assets - interest rate swaps 0 0
Liabilities:    
Derivative liabilities - interest rate swaps $ 0 $ 0
v3.24.3
Fair Value - Schedule of Significant Unobservable Inputs (Details) - Significant Unobservable Inputs (Level 3)
Dec. 31, 2023
$ / sqft
Overall capitalization rate  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 0.085
Market rent per square foot  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 45.00
Range of comparable sale price per square foot | Minimum  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 60.86
Range of comparable sale price per square foot | Maximum  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 98.04
v3.24.3
Derivative Instruments and Hedging Activities - Narrative (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Derivative [Line Items]  
Additional gain expected to be reclassified from AOCI into earnings during next twelve months $ 4,889
v3.24.3
Derivative Instruments and Hedging Activities - Schedule of the Notional Amount and Fair Value of Derivative Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Weighted Average Fixed Interest Rate 3.28%  
Fair Value of Assets $ 6,739 $ 17,060
Fair Value of Liabilities (753) (457)
Interest rate swaps | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Outstanding Notional Amount 525,000 525,000
Interest rate swaps | Assets | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Assets 6,739 17,060
Interest rate swaps | Liabilities | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Liabilities $ (753) (457)
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing December 31, 2024    
Derivatives, Fair Value [Line Items]    
Weighted Average Fixed Interest Rate 0.93%  
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing December 31, 2024 | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Outstanding Notional Amount $ 250,000 250,000
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing December 31, 2024 | Assets | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Assets 2,307 9,172
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing December 31, 2024 | Liabilities | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Liabilities $ 0 0
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing January 31, 2028    
Derivatives, Fair Value [Line Items]    
Weighted Average Fixed Interest Rate 2.83%  
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing January 31, 2028 | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Outstanding Notional Amount $ 275,000 275,000
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing January 31, 2028 | Assets | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Assets 4,432 7,888
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing January 31, 2028 | Liabilities | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Liabilities $ (753) $ (457)
v3.24.3
Derivative Instruments and Hedging Activities - Schedule of Income and Losses Recognized on Derivative Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]        
Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income $ (5,468) $ (5,653) $ (15,955) $ (16,939)
Interest rate swaps        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of (Loss) Income Recognized in Other Comprehensive (Loss) Income on Derivatives (6,843) 6,780 2,943 13,550
Interest rate swaps | Interest expense        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Income Reclassified From Accumulated Other Comprehensive Income to Net Income $ 4,527 $ 4,465 $ 13,560 $ 12,117
v3.24.3
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 6,739 $ 17,060
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Assets Presented in the Balance Sheet 6,739 17,060
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral (753) (457)
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral 0 0
Net Amount $ 5,986 $ 16,603
v3.24.3
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Liabilities $ 753 $ 457
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Liabilities Presented in the Balance Sheet 753 457
Financial Instruments Collateral (753) (457)
Cash Collateral 0 0
Net Amount $ 0 $ 0
v3.24.3
Stockholders' Equity - Narrative (Details)
 3 Months Ended 9 Months Ended
Jul. 19, 2024
USD ($)
Jun. 13, 2024
USD ($)
$ / shares
shares
Apr. 08, 2024
Sep. 30, 2024
USD ($)
shares
Sep. 30, 2023
USD ($)
shares
Sep. 30, 2024
USD ($)
$ / shares
shares
Sep. 30, 2023
USD ($)
$ / shares
shares
Aug. 16, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
Class of Stock [Line Items]                  
Reverse stock split, conversion ratio     0.25            
Distributions payable to stockholders       $ 7,383,000   $ 7,383,000     $ 7,782,000
Repurchase of common stock (in shares) | shares   2,212,389              
Repurchase of common stock         $ 3,382,000   $ 9,376,000    
Share repurchase program, authorized shares (in shares) | shares               1,500,000  
Share repurchase program, authorized amount               $ 25,000,000  
Share repurchase program, authorized remaining amount       25,000,000   $ 25,000,000      
Common stock outstanding percentage 0.039                
Repurchase of common stock $ 50,000,000                
Tender offer repurchase of common stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares           2,212,389      
Repurchase of common stock $ 2,093,000     $ 52,093,000   $ 52,093,000      
Share repurchase program, authorized amount   $ 50,000,000              
Repurchase of common stock           $ 51,480,000 $ 0    
Maximum | Tender offer repurchase of common stock                  
Class of Stock [Line Items]                  
Repurchase of common stock, average price per share (in dollars per share) | $ / shares   $ 24.00              
Minimum | Tender offer repurchase of common stock                  
Class of Stock [Line Items]                  
Repurchase of common stock, average price per share (in dollars per share) | $ / shares   $ 22.60              
Common Stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares [1]         103,970   286,268    
Repurchase of common stock [1]         $ 1,000   $ 3,000    
Common Stock | Tender offer repurchase of common stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares [2]       2,212,389   2,212,389      
Repurchase of common stock [2]       $ 22,000   $ 22,000      
Class A, I and T Shares | Common Stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares           283,694 286,268    
Repurchase of common stock           $ 8,486,000 $ 9,376,000    
Repurchase of common stock, average price per share (in dollars per share) | $ / shares           $ 29.92 $ 32.75    
Common Class A | Common Stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares           246,206 219,965    
Common Class I | Common Stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares           7,574 25,643    
Common Class T | Common Stock                  
Class of Stock [Line Items]                  
Repurchase of common stock (in shares) | shares           29,914 40,660    
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[2] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
Stockholders' Equity - Amounts Recognized in AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance beginning $ 1,472,911 $ 1,535,863 $ 1,494,435 $ 1,555,095
Other comprehensive (loss) income (11,370) 2,315 (10,617) 1,433
Balance ending 1,400,475 1,534,116 1,400,475 1,534,116
Unrealized Income (Loss) on Derivative Instruments        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance beginning     16,603 27,990
Other comprehensive income before reclassification     2,943 13,550
Amount of income reclassified from accumulated other comprehensive income to net income     (13,560) (12,117)
Other comprehensive (loss) income     (10,617) 1,433
Balance ending $ 5,986 $ 29,423 $ 5,986 $ 29,423
v3.24.3
Stockholders' Equity - Reclassifications Out of AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate swap contracts $ (11,935) $ (14,983) $ (31,543) $ (33,038)
Interest rate swaps | Income Amounts Reclassified from Accumulated Other Comprehensive Income to Net Income | Reclassification out of Accumulated Other Comprehensive Income (Loss)        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate swap contracts     $ (13,560) $ (12,117)
v3.24.3
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Earnings:        
Net income attributable to common stockholders $ 11,935 $ 14,983 $ 31,543 $ 33,038
Less: Income allocated to participating securities (80) (74) (171) (163)
Net income used in basic earnings per share 11,855 14,909 31,372 32,875
Add back: Income allocated to participating securities 80 74 171 163
Net income used in diluted earnings per share $ 11,935 $ 14,983 $ 31,543 $ 33,038
Weighted Average Shares:        
Basic weighted average number of common shares outstanding (in shares) [1] 55,571,298 56,859,076 56,634,376 56,748,751
Diluted weighted average number of common shares outstanding (in shares) [1] 56,081,618 57,320,665 57,094,737 57,210,977
Net income per share attributable to common stockholders:        
Basic (in dollars per share) [1] $ 0.21 $ 0.26 $ 0.55 $ 0.58
Diluted (in dollars per share) [1] $ 0.21 $ 0.26 $ 0.55 $ 0.58
Restricted Stock        
Weighted Average Shares:        
Dilutive effect of weighted average shares (in shares) 373,047 280,369 308,968 281,006
Performance DSUs        
Weighted Average Shares:        
Dilutive effect of weighted average shares (in shares) 137,273 181,220 151,393 181,220
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.3
Stock-based Compensation (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
director
shares
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
director
Sep. 30, 2023
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Accelerated stock-based compensation | $ $ 12   $ 875  
Stock-based compensation | $ $ 1,311 $ 1,228 3,798 $ 3,721
Restricted Stock, Time-Based        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Awards granted (in shares) | shares 89,373      
Award vesting under plan, percentage per annum 25.00%      
Unrecognized stock-based compensation expense | $ $ 1,646   $ 1,646  
Restricted Stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Awards granted (in shares) | shares 24,245      
Number of independent directors | director 5   5  
Restricted Stock | Director        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Awards granted (in shares) | shares 4,849      
v3.24.3
Commitments and Contingencies (Details)
Sep. 30, 2024
legal_proceeding
Commitments and Contingencies Disclosure [Abstract]  
Number of pending legal proceedings to which the company is a party 0
v3.24.3
Subsequent Events (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 18, 2024
$ / shares
Oct. 15, 2024
USD ($)
Sep. 30, 2024
$ / shares
Sep. 30, 2023
$ / shares
Sep. 30, 2024
$ / shares
Sep. 30, 2023
$ / shares
Nov. 05, 2024
USD ($)
loan
Subsequent Event [Line Items]              
Distributions declared per common share (in dollars per share) | $ / shares [1]     $ 0.40 $ 0.40 $ 1.20 $ 1.20  
Subsequent Event              
Subsequent Event [Line Items]              
Distributions paid | $   $ 7,383          
Distributions declared per common share (in dollars per share) | $ / shares $ 0.1333            
Annualized distribution per share (in dollars per share) | $ / shares $ 1.60            
Number of mezzanine loans | loan             2
Subsequent Event | Unfunded Loan Commitment | Inpatient Rehabilitation Facility              
Subsequent Event [Line Items]              
Mezzanine loans | $             $ 12,543
Subsequent Event | Unfunded Loan Commitment | Behavioral Healthcare Facility              
Subsequent Event [Line Items]              
Mezzanine loans | $             $ 5,000
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).