SILA REALTY TRUST, INC., 10-Q filed on 5/9/2025
Quarterly Report
v3.25.1
Cover - shares
 3 Months Ended
Mar. 31, 2025
May 01, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Current Fiscal Year End Date --12-31  
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, $0.01 par value per share  
Trading Symbol SILA  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   55,145,873
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001567925  
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Real estate:    
Land $ 160,743 $ 160,743
Buildings and improvements, less accumulated depreciation of $289,458 and $277,024, respectively 1,561,007 1,546,877
Total real estate, net 1,721,750 1,707,620
Cash and cash equivalents 30,458 39,844
Intangible assets, less accumulated amortization of $127,178 and $122,208, respectively 123,662 125,655
Goodwill 17,700 17,700
Right-of-use assets - operating leases 36,066 36,332
Right-of-use assets - finance lease 1,901 0
Other assets 83,394 79,923
Total assets 2,014,931 2,007,074
Liabilities:    
Credit facility, net of deferred financing costs of $2,885 and $3,079, respectively 554,115 521,921
Accounts payable and other liabilities 30,881 33,405
Intangible liabilities, less accumulated amortization of $9,076 and $8,761, respectively 6,755 7,070
Operating lease liabilities 41,342 41,493
Finance lease liabilities 74 0
Total liabilities 633,167 603,889
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; 61,897,727 and 61,779,631 shares issued, respectively; 55,145,873 and 55,075,006 shares outstanding, respectively 551 551
Additional paid-in capital 1,998,893 1,998,777
Distributions in excess of accumulated earnings (621,898) (607,499)
Accumulated other comprehensive income 4,218 11,356
Total stockholders’ equity 1,381,764 1,403,185
Total liabilities and stockholders’ equity $ 2,014,931 $ 2,007,074
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Buildings and improvements, accumulated depreciation $ 289,458 $ 277,024
Intangible assets, accumulated amortization 127,178 122,208
Credit facility, deferred financing costs 2,885 3,079
Intangible liabilities, accumulated amortization $ 9,076 $ 8,761
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) 61,897,727 61,779,631
Common stock, shares outstanding (in shares) 55,145,873 55,075,006
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue:    
Rental revenue $ 48,256 $ 50,639
Expenses:    
Rental expenses 6,326 5,554
Listing-related expenses 0 56
General and administrative expenses 5,698 8,174
Depreciation and amortization 17,762 18,898
Impairment losses 3,531 0
Total operating expenses 33,317 32,682
Other income (expense):    
Gain on dispositions of real estate 0 76
Interest and other income 455 2,241
Interest expense (7,325) (5,294)
Increase in current expected credit loss reserve (171) 0
Total other expense (7,041) (2,977)
Net income attributable to common stockholders 7,898 14,980
Other comprehensive (loss) income - unrealized (loss) gain on interest rate swaps, net (7,138) 2,868
Comprehensive income attributable to common stockholders $ 760 $ 17,848
Weighted average number of common shares outstanding:    
Basic (in shares) 55,130,665 57,113,041
Diluted (in shares) 55,620,892 57,661,507
Net income per common share attributable to common stockholders:    
Basic (in dollars per share) $ 0.14 $ 0.26
Diluted (in dollars per share) $ 0.14 $ 0.26
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Distributions in Excess of Accumulated Earnings
Accumulated Other Comprehensive Income
Balance, (in shares) at Dec. 31, 2023   56,983,564      
Balance beginning at Dec. 31, 2023 $ 1,494,435 $ 570 $ 2,044,450 $ (567,188) $ 16,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares)   200,343      
Issuance of common stock under the distribution reinvestment plan 5,997 $ 2 5,995    
Vesting and issuance of restricted common stock and performance-based deferred stock unit awards (in shares)   183,024      
Stock-based compensation 1,324 $ 1 1,323    
Other offering costs (26)   (26)    
Repurchase of common stock (in shares)   (143,283)      
Repurchase of common stock (4,286) $ (1) (4,285)    
Distributions to common stockholders (22,785)     (22,785)  
Other comprehensive (loss) income 2,868       2,868
Net income 14,980     14,980  
Balance, (in shares) at Mar. 31, 2024   57,223,648      
Balance ending at Mar. 31, 2024 1,492,507 $ 572 2,047,457 (574,993) 19,471
Balance, (in shares) at Dec. 31, 2023   56,983,564      
Balance beginning at Dec. 31, 2023 $ 1,494,435 $ 570 2,044,450 (567,188) 16,603
Balance, (in shares) at Dec. 31, 2024 55,075,006 55,075,006      
Balance ending at Dec. 31, 2024 $ 1,403,185 $ 551 1,998,777 (607,499) 11,356
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan 0        
Vesting and issuance of restricted common stock and performance-based deferred stock unit awards (in shares)   118,096      
Stock-based compensation 1,261 $ 1 1,260    
Repurchase of common stock (in shares)   (47,229)      
Repurchase of common stock (1,145) $ (1) (1,144)    
Distributions to common stockholders (22,297)     (22,297)  
Other comprehensive (loss) income (7,138)       (7,138)
Net income $ 7,898     7,898  
Balance, (in shares) at Mar. 31, 2025 55,145,873 55,145,873      
Balance ending at Mar. 31, 2025 $ 1,381,764 $ 551 $ 1,998,893 $ (621,898) $ 4,218
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net income attributable to common stockholders $ 7,898 $ 14,980
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities:    
Depreciation and amortization 17,762 18,898
Amortization of deferred financing costs 652 452
Amortization of above- and below-market leases, net (129) (780)
Increase in current expected credit loss reserve 171 0
Other amortization expenses 184 184
Gain on dispositions of real estate 0 (76)
Loss on extinguishment of debt 233 228
Impairment losses 3,531 0
Straight-line rent adjustments, net of write-offs (2,388) (1,176)
Stock-based compensation 1,261 1,324
Changes in operating assets and liabilities:    
Accounts payable and other liabilities (3,604) 2,039
Other assets (1,442) 499
Net cash provided by operating activities 24,129 36,572
Cash flows from investing activities:    
Investments in real estate (35,315) (124,913)
Net proceeds from real estate dispositions 0 1,439
Capital expenditures and other costs (577) (446)
Net payments of deposits for investments in real estate (150) 0
Net cash used in investing activities (36,042) (123,920)
Cash flows from financing activities:    
Proceeds from credit facility 32,000 250,000
Payments on credit facility 0 (250,000)
Payments of deferred financing costs (5,839) (2,460)
Repurchase of common stock (1,145) (4,286)
Offering costs on issuance of common stock 0 (61)
Distributions to common stockholders (22,489) (17,622)
Net cash provided by (used in) financing activities 2,527 (24,429)
Net change in cash, cash equivalents and restricted cash (9,386) (111,777)
Cash, cash equivalents and restricted cash - Beginning of period 39,844 202,185
Cash, cash equivalents and restricted cash - End of period 30,458 90,408
Supplemental cash flow disclosure:    
Interest paid 6,477 5,524
Supplemental disclosure of non-cash transactions:    
Common stock issued through distribution reinvestment plan 0 5,997
Change in accrued distributions to common stockholders (192) (834)
Change in accrued capital expenditures and other costs (527) (479)
Change in accrued acquisition costs related to investments in real estate 5 0
Right-of-use assets obtained in exchange for new finance lease liabilities $ 74 $ 0
v3.25.1
Organization and Business Operations
 3 Months Ended
Mar. 31, 2025
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.
The Company's common stock, par value $0.01 per share, or the Common Stock, is the sole class of stock traded on the New York Stock Exchange, or the NYSE, under the ticker symbol "SILA."
v3.25.1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2025
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, 2024, and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission, or the SEC, on March 3, 2025. 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 months ended March 31, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.
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):
Three Months Ended
March 31,
20252024
Beginning of period:
Cash and cash equivalents$39,844 $202,019 
Restricted cash— 166 
Cash, cash equivalents and restricted cash$39,844 $202,185 
End of period:
Cash and cash equivalents$30,458 $90,242 
Restricted cash— 

166 
Cash, cash equivalents and restricted cash$30,458 $90,408 
Current Expected Credit Losses Reserve
The current expected credit loss, or CECL, reserve required under Accounting Standards Codification, or ASC, 326, Financial Instruments - Credit Losses, or ASC 326, reflects the Company's current estimate of potential credit losses related to the Company's unfunded commitments on mezzanine loans that the Company has entered into. Other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. Pursuant to ASC 326, a CECL reserve should be estimated for off-balance-sheet exposures over the contractual period in which it is exposed to credit risk via a present contractual obligation to extend credit. The CECL reserve should consider the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company determines the CECL reserve quarterly by using a probability of default/loss given default method. ASC 326 details factors the Company should consider when developing the CECL reserve, including historical loss data, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. Additionally, the Company considers credit quality when developing the CECL reserve, including the borrower credit rating and the underlying collateral and progress of developments, if applicable, among other considerations. The Company considers both of the mezzanine loans as a pool when developing the CECL reserve.
Pursuant to ASC 326, the Company has made an accounting policy election not to measure the CECL reserve for accrued interest receivables, as these will be written off, if deemed uncollectible, in a timely manner. The Company generally suspends the income accrual for loans at the earlier of the date at which payments become 90 days past due or when, in the Company's opinion, recovery of income and principal becomes doubtful.
During the three months ended March 31, 2025, the Company recorded an increase to the current expected credit loss reserve of $171,000 in the accompanying condensed consolidated statements of comprehensive income. The current expected credit loss reserve has a balance of $171,000, related to the Company's unfunded commitments on mezzanine loans, reported within accounts payable and other liabilities on the condensed consolidated balance sheets. See Note 16—"Commitments and Contingencies" for additional details regarding the Company's unfunded commitments on mezzanine loans.
Stock-based Compensation
On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or 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, officers and employees. The Company accounts for its stock awards in accordance with ASC 718-10, Compensation—Stock Compensation, or ASC 718-10. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). For performance-based awards, compensation costs are recognized over the service period if it is probable that the performance condition will be satisfied, with changes of the assessment at each reporting period and recording the effect of the change in the compensation cost as a cumulative catch-up adjustment. For market-based awards, compensation costs are recognized over the service period regardless of whether the market performance measures are achieved. The Company's performance-based awards and market-based awards are collectively referred to as "Performance DSUs". The compensation costs for restricted stock are recognized based on the fair value of the restricted stock awards at grant date, which is equal to the market value of the Company's Common Stock on that date of grant. Prior to the Company's listing on the NYSE, the fair value was estimated based on the most recent per share net asset value. The Company recognizes the impact of forfeitures as they occur.
Changes in Presentation
The Company previously presented expenses related to its June 13, 2024 listing on the NYSE within general and administrative expenses. These amounts have been reclassified to listing-related expenses in the accompanying condensed consolidated statements of comprehensive income for the prior period to conform to the current period presentation.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses to improve disclosures about an entity's expenses and to provide detailed information about the types of expenses in commonly presented expense captions. ASU 2024-03 requires disclosures about specific expense categories including purchases of inventory, employee compensation, depreciation, amortization and selling expenses. Additionally, ASU 2024-03 requires a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods for fiscal years beginning after December 15, 2027, and should be applied either prospectively for reporting periods after the effective date of the ASU or retrospectively to all periods presented. Early adoption is permitted. The Company expects the adoption of this standard to expand its annual and interim expense disclosures, but otherwise have no impact on the condensed consolidated financial statements.
v3.25.1
Real Estate
 3 Months Ended
Mar. 31, 2025
Real Estate [Abstract]  
Real Estate Real Estate
Acquisitions
During the three months ended March 31, 2025, the Company purchased one real estate property that was subject to a ground lease, which was determined to be an asset acquisition. The Company allocated the purchase price to tangible assets, consisting of building and improvements, and tenant improvements; intangible assets, consisting of an in-place lease and right-of-use assets - finance lease; and finance lease liabilities, based on the relative fair value method of allocating all accumulated costs. The Company engaged a well-known real estate services firm to assist in performing the purchase price allocation.
The following table summarizes the cash consideration transferred, including acquisition costs, and the purchase price allocation for the acquisition during the three months ended March 31, 2025 (amounts in thousands):
Property Description Date AcquiredOwnership Percentage
Cash Consideration Transferred
(amount in thousands)
Knoxville Healthcare Facility 03/04/2025100%$35,320 
Total $35,320 
Total
Building and improvements$26,515 
Tenant improvements4,001 
In-place leases2,977 
Right-of-use assets - finance lease1,901 
Total assets acquired35,394 
Finance lease liabilities(74)
Total liabilities assumed(74)
Net assets acquired$35,320 
The Company capitalized acquisition costs of $202,000, which are included in the allocation of the real estate acquisition presented above.
Investment Risk Concentrations
As of March 31, 2025, the Company did not have exposure to geographic concentration that accounted for at least 10.0% of rental revenue for the three months ended March 31, 2025.
As of March 31, 2025, the Company had one exposure to tenant concentration that accounted for at least 10.0% of rental revenue for the three months ended March 31, 2025. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 16.2% of rental revenue for the three months ended March 31, 2025.
Steward
On May 6, 2024, Steward Health Care System LLC, or Steward, the sponsor and owner of a tenant at the Stoughton Healthcare Facility, announced that it filed for Chapter 11 bankruptcy protection under the United States Bankruptcy Code. On September 19, 2024, the U.S. Bankruptcy Court for the Southern District of Texas approved Steward's request to reject our lease.
During the three months ended March 31, 2025, the Company recorded impairment losses on real estate of $3,531,000 attributable to the Stoughton Healthcare Facility. The fair value of the Stoughton Healthcare Facility was measured based on inputs that are derived principally from observable market data related to the marketing for sale of the asset, which resides within Level 2 of the fair value hierarchy. This impairment was allocated to buildings and improvements.
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. 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. The Company received a $2,000,000 severance fee from GenesisCare, or the GenesisCare Severance Fee, on March 27, 2024. The Company recognizes the GenesisCare Severance Fee in rental revenue on a straight-line basis over the remaining GenesisCare Amended Master Lease term. During the three months ended March 31, 2025 and 2024, the Company recognized $57,000 and $3,000, respectively, of amortization of the GenesisCare Severance Fee in rental revenue in the accompanying condensed consolidated statements of comprehensive income.
Accelerated Amortization of Intangible Assets
During the three months ended March 31, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $2,082,000, $158,000, and $1,013,000, respectively, primarily due to the GenesisCare Amended Master Lease.
Impairment losses on real estate are recorded as impairment losses in the accompanying condensed consolidated statements of comprehensive income. Accelerated amortization of in-place leases is included in depreciation and amortization in the accompanying condensed consolidated statements of comprehensive income. Accelerated amortization of above-market leases is recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income. Accelerated amortization of below-market leases is recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.25.1
Intangible Assets, Net
 3 Months Ended
Mar. 31, 2025
Finite-Lived Intangible Assets, Net [Abstract]  
Intangible Assets, Net Intangible Assets, Net
Intangible assets, net, consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands, except weighted average remaining life amounts):
 March 31, 2025December 31, 2024
In-place leases, net of accumulated amortization of $119,558 and $114,774, respectively (with a weighted average remaining life of 7.1 years and 7.3 years, respectively)
$118,592 $120,399 
Above-market leases, net of accumulated amortization of $7,620 and $7,434, respectively (with a weighted average remaining life of 7.3 years and 7.6 years, respectively)
5,070 5,256 
$123,662 $125,655 
The aggregate weighted average remaining life of the intangible assets was 7.1 years and 7.3 years as of March 31, 2025 and December 31, 2024, respectively.
Amortization of intangible assets was $4,970,000 and $7,478,000 for the three months ended March 31, 2025 and 2024, 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.
v3.25.1
Intangible Liabilities, Net
 3 Months Ended
Mar. 31, 2025
Intangible Lease Liabilities, Net [Abstract]  
Intangible Liabilities, Net Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands, except weighted average remaining life amounts):
March 31, 2025December 31, 2024
Below-market leases, net of accumulated amortization of $9,076 and $8,761, respectively (with a weighted average remaining life of 5.9 years and 6.1 years, respectively)
$6,755 $7,070 
Amortization of below-market leases was $315,000 and $1,387,000 for the three months ended March 31, 2025 and 2024, respectively. Amortization of below-market leases is recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
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.
The following table summarizes the Company's rental revenue from operating leases for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
March 31,
 20252024
Rental income
$44,097 $46,797 
Variable lease income
4,159 3,842 
Total rental revenue
$48,256 $50,639 
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 March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):
March 31, 2025(1)
Period ending December 31, 2025$126,433 
2026165,651 
2027162,670 
2028158,117 
2029153,400 
Thereafter1,108,823 
Total$1,875,094 
(1)The table includes payments from a tenant who is on the cash basis of accounting for revenue recognition purposes that has continued to make rental payments as of March 31, 2025.
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. Additionally, the Company has one non-cancellable lease agreement that is classified as a finance lease related to a ground lease of a healthcare property.
The Company's operating leases and finance lease do not provide implicit interest rates. In order to calculate the present value of the remaining operating and finance 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 and finance lease.
The effects of the Company's operating leases are recorded in right-of-use assets - operating leases and operating lease liabilities on the condensed consolidated balance sheets. The effects of the Company's finance lease are recorded in right-of-use assets - finance lease and finance lease liabilities on the condensed consolidated balance sheets.
The future rent payments under non-cancellable leases in effect as of March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Operating
Finance
Period ending December 31, 2025$2,052 $9 
20262,811 9 
20272,852 9 
20282,868 9 
20292,603 9 
Thereafter103,513 58 
Total undiscounted rental payments116,699 103 
Less imputed interest(75,357)(29)
Total lease liabilities$41,342 $74 

The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's operating leases are as follows:
 March 31, 2025December 31, 2024
Weighted average IBR5.5 %5.5 %
Weighted average remaining lease term35.1 years35.2 years
The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's finance lease is as follows:
 March 31, 2025December 31, 2024
IBR
5.8 %— %
Remaining lease term
11.3 years— 
The following table provides details of the Company's total lease costs for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
March 31,
Location in Condensed Consolidated Statements of Comprehensive Income20252024
Operating lease costs:
Ground lease costs(1)
Rental expenses$689 $682 
Corporate operating lease costsGeneral and administrative expenses183 189 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$244 $176 
Right-of-use assets obtained in exchange for new finance lease liabilities$74 $— 
(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.
The following table summarizes the Company's rental revenue from operating leases for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
March 31,
 20252024
Rental income
$44,097 $46,797 
Variable lease income
4,159 3,842 
Total rental revenue
$48,256 $50,639 
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 March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):
March 31, 2025(1)
Period ending December 31, 2025$126,433 
2026165,651 
2027162,670 
2028158,117 
2029153,400 
Thereafter1,108,823 
Total$1,875,094 
(1)The table includes payments from a tenant who is on the cash basis of accounting for revenue recognition purposes that has continued to make rental payments as of March 31, 2025.
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. Additionally, the Company has one non-cancellable lease agreement that is classified as a finance lease related to a ground lease of a healthcare property.
The Company's operating leases and finance lease do not provide implicit interest rates. In order to calculate the present value of the remaining operating and finance 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 and finance lease.
The effects of the Company's operating leases are recorded in right-of-use assets - operating leases and operating lease liabilities on the condensed consolidated balance sheets. The effects of the Company's finance lease are recorded in right-of-use assets - finance lease and finance lease liabilities on the condensed consolidated balance sheets.
The future rent payments under non-cancellable leases in effect as of March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Operating
Finance
Period ending December 31, 2025$2,052 $9 
20262,811 9 
20272,852 9 
20282,868 9 
20292,603 9 
Thereafter103,513 58 
Total undiscounted rental payments116,699 103 
Less imputed interest(75,357)(29)
Total lease liabilities$41,342 $74 

The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's operating leases are as follows:
 March 31, 2025December 31, 2024
Weighted average IBR5.5 %5.5 %
Weighted average remaining lease term35.1 years35.2 years
The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's finance lease is as follows:
 March 31, 2025December 31, 2024
IBR
5.8 %— %
Remaining lease term
11.3 years— 
The following table provides details of the Company's total lease costs for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
March 31,
Location in Condensed Consolidated Statements of Comprehensive Income20252024
Operating lease costs:
Ground lease costs(1)
Rental expenses$689 $682 
Corporate operating lease costsGeneral and administrative expenses183 189 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$244 $176 
Right-of-use assets obtained in exchange for new finance lease liabilities$74 $— 
(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.
v3.25.1
Other Assets
 3 Months Ended
Mar. 31, 2025
Other Assets [Abstract]  
Other Assets Other Assets
Other assets consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands):
 March 31, 2025December 31, 2024
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $190 and $2,988, respectively
$6,360 $1,203 
Leasing commissions, net of accumulated amortization of $354 and $306, respectively
2,368 1,941 
Tenant receivables4,960 3,281 
Straight-line rent receivable60,544 58,400 
Real estate deposits500 350 
Prepaid and other assets2,638 3,392 
Derivative assets - interest rate swaps6,024 11,356 
$83,394 $79,923 
v3.25.1
Accounts Payable and Other Liabilities
 3 Months Ended
Mar. 31, 2025
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 March 31, 2025 and December 31, 2024 (amounts in thousands):
 March 31, 2025December 31, 2024
Accounts payable and accrued expenses$7,016 $6,303 
Accrued interest expense2,183 2,187 
Accrued property taxes4,026 3,897 
Accrued personnel costs1,703 6,660 
Performance DSUs distributions payable352 544 
Tenant deposits1,691 1,691 
Deferred rental income11,933 12,123 
Derivative liabilities - interest rate swaps1,806 — 
Current expected credit loss reserve for unfunded loan commitments 171 — 
$30,881 $33,405 
v3.25.1
Credit Facility
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Credit Facility Credit Facility
The Company's outstanding credit facility as of March 31, 2025 and December 31, 2024 consisted of the following (amounts in thousands):
Weighted
Average Contractual Rate(1)
March 31, 2025December 31, 2024
2029 Variable rate revolving line of credit5.58%$32,000 $— 
2027 Variable rate term loan fixed through interest rate swaps(2)
5.11%250,000 250,000 
2028 Variable rate term loan fixed through interest rate swaps(3)
4.18%275,000 275,000 
Total credit facility, principal amount outstanding4.68%557,000 525,000 
Unamortized deferred financing costs related to credit facility term loans(2,885)(3,079)
Total credit facility, net of deferred financing costs$554,115 $521,921 
(1)Weighted average contractual rate is as of March 31, 2025.
(2)Fixed through four interest rate swaps that mature on March 20, 2029.
(3)Fixed through six interest rate swaps that mature on January 31, 2028.
Significant activities regarding the credit facility during the three months ended March 31, 2025 include:
•On February 18, 2025, the Company entered into a senior unsecured revolving credit agreement, or the 2029 Revolving Credit Agreement, with Bank of America, N.A., as Administrative Agent for the lenders, for aggregate commitments available of up to $600,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,500,000,000. The maturity date for the 2029 Revolving Credit Agreement is February 16, 2029, which, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to certain conditions, including a payment of an extension fee. The 2029 Revolving Credit Agreement was entered into to replace the Company's prior $500,000,000 revolving line of credit, which had a maturity date of February 15, 2026, or the 2026 Revolving Credit Agreement, with the option to extend for two six-month periods. The Company did not exercise the option to extend. Upon closing of the 2029 Revolving Credit Agreement, the Company extinguished all commitments associated with the 2026 Revolving Credit Agreement. At the Company’s election, borrowings under the 2029 Revolving Credit Agreement may be made as Base Rate loans or Secured Overnight Financing Rate, or SOFR, loans. The applicable margin for loans that are Base Rate loans is adjustable based on a total leverage ratio, ranging from 0.25% to 0.90%. The applicable margin for loans that are SOFR loans is adjustable based on a total leverage ratio, ranging from 1.25% to 1.90%. In addition to interest, the Company is required to pay a fee on the unused portion of the lenders’ commitments under the 2029 Revolving Credit Agreement at a rate per annum equal to 0.20% if the average daily amount outstanding under the 2029 Revolving Credit Agreement is less than 50% of the aggregate commitments, or 0.15% if the average daily amount outstanding under the 2029 Revolving Credit Agreement is equal to or greater than 50% of the aggregate commitments. The unused fee is payable quarterly in arrears. Additionally, upon closing of the 2029 Revolving Credit Agreement, the Company entered into a First Amendment to the senior unsecured amended and restated term loan agreement with Truist Bank, as Administrative Agent, or the 2027 Term Loan Agreement, and a Second Amendment to the senior unsecured term loan with Truist Bank, as Administrative Agent for the lenders, or the 2028 Term Loan Agreement, to align certain terms and covenants to the 2029 Revolving Credit Agreement.
•In connection with entering into the 2029 Revolving Credit Agreement to replace the 2026 Revolving Credit Agreement, the Company recognized a loss on extinguishment of debt of $233,000 during the three months ended March 31, 2025. The loss on extinguishment of debt was recognized in interest expense in the accompanying condensed consolidated statements of comprehensive income.
The principal payments due on the credit facility as of March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Amount
Period ending December 31, 2025$— 
2026— 
2027250,000 
2028275,000 
202932,000 
Thereafter— 
$557,000 
v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's healthcare properties are aggregated into one operating segment due to their similar economic characteristics. The healthcare operating segment is the Company's only reportable segment.
In the healthcare operating segment, the Company generates income from rental revenue from leases and tenant reimbursements, which include additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses. Additionally, the healthcare operating segment earns interest income from real estate-related investments.
The Company's chief operating decision maker, or CODM, is the chief executive officer, who assesses the performance of the operating segment using net income, which is reported on the condensed consolidated statements of comprehensive income as net income attributable to common stockholders. The CODM assesses net income at least quarterly to review budget-to-actual variances, review quarter-over-quarter actual variances, evaluate the operating performance of the healthcare properties, and allocate resources within the segment. Segment expenses provided to the CODM for budget-to-actual variance review and quarter-over-quarter actual variance review include rental expenses, general and administrative expenses, depreciation and
amortization, impairment and disposition losses and interest expense. Additionally, the CODM considers net income when determining the amount of distributions necessary to maintain the Company's REIT status.
There were no intersegment sales or transfers during the three months ended March 31, 2025 and 2024. Segment assets are reported on the condensed consolidated balance sheets as total assets while capital expenditures for the reportable segment are reported on the condensed consolidated statements of cash flows as capital expenditures and other costs.
v3.25.1
Fair Value
 3 Months Ended
Mar. 31, 2025
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 $557,000,000 and $525,000,000, which approximated its fair value due to the variable nature of the terms as of March 31, 2025 and December 31, 2024, 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 March 31, 2025, 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 March 31, 2025 and December 31, 2024 (amounts in thousands):
 March 31, 2025
 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$— $6,024 $— $6,024 
Total assets at fair value$— $6,024 $— $6,024 
Liabilities:
Derivative liabilities - interest rate swaps$— $1,806 $— $1,806 
Total liabilities at fair value$— $1,806 $— $1,806 
 December 31, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $11,356 $— $11,356 
Total assets at fair value$— $11,356 $— $11,356 
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 March 31, 2025, one real estate asset was measured at fair value of $7,000,000 and resulted in the recognition of an impairment loss of $3,531,000 for the three months ended March 31, 2025. The fair value was measured based on inputs that are derived principally from observable market data related to the marketing for sale of the asset, which resides within Level 2 of the fair value hierarchy.
As of December 31, 2024, there were no real estate assets measured at fair value on a non-recurring basis.
v3.25.1
Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2025
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 $3,327,000 will be reclassified from accumulated other comprehensive income as a reduction to interest expense. As of March 31, 2025, the Company had 10 interest rate swap agreements, of which six mature on January 31, 2028 and four mature on March 20, 2029.
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		March 31, 2025December 31, 2024
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)
2.83%05/02/2022 to 05/01/202301/31/2028275,000 6,024 (267)275,000 9,261 — 
Interest rate swaps(1)
3.76%12/31/202403/20/2029250,000 — (1,539)250,000 2,095 — 
$525,000 $6,024 $(1,806)$525,000 $11,356 $— 
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks.
The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of (Loss) Income Recognized
in Other Comprehensive Income on Derivatives		Location of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2025
Interest rate swaps$(5,745)Interest expense$1,393 $(7,325)
Three Months Ended March 31, 2024
Interest rate swaps$7,393 Interest expense$4,525 $(5,294)
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 March 31, 2025, the fair value of derivatives related to counterparties that were in a net liability position was $1,020,000, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of December 31, 2024, the Company had no counterparties with fair value of derivatives in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of both March 31, 2025 and December 31, 2024, 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 March 31, 2025 and December 31, 2024 (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
March 31, 2025$6,024 $— $6,024 $(766)$— $5,258 
December 31, 2024$11,356 $— $11,356 $— $— $11,356 
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
March 31, 2025$1,806 $— $1,806 $(766)$— $1,040 
December 31, 2024$— $— $— $— $— $— 
v3.25.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2025
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 and outstanding shares of Class I Common Stock and Class T Common Stock were converted into 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.
Distributions Paid and Distributions Payable
The Company paid and declared distributions per share of Common Stock in the amount of $0.40 for each of the three months ended March 31, 2025 and 2024.
On May 6, 2025, the Board approved and authorized a quarterly cash dividend of $0.40 per share of Common Stock payable on June 4, 2025, to the Company's stockholders of record as of the close of business on May 21, 2025.
On April 5, 2024, the Board approved the termination of the distribution reinvestment plan, effective May 1, 2024.
Share Repurchases
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 March 31, 2025, or during the year ended December 31, 2024. Therefore, as of March 31, 2025 and as of December 31, 2024, up to $25,000,000 of the Company's Common Stock remained available for repurchase under the Share Repurchase Program.
Repurchase of Common Stock
During the three months ended March 31, 2025, the Company repurchased 47,229 shares of Common Stock for the net settlement of withholding taxes in connection with the vesting of restricted stock and performance-based deferred stock unit awards, for an aggregate purchase price of $1,145,000 (an average of $24.24 per share). During the three months ended March 31, 2024, the Company repurchased 143,283 Class A shares, Class I shares and Class T shares of Common Stock pursuant to the Terminated Share Repurchase Program (as defined below) and for the net settlement of withholding taxes in connection with the vesting of restricted stock and performance-based deferred stock unit awards (128,492 Class A shares, 3,104 Class I shares and 11,687 Class T shares), for an aggregate purchase price of $4,286,000 (an average of $29.92 per share).
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 Company's listing on the NYSE.
Accumulated Other Comprehensive Income
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2024$11,356 
Other comprehensive loss before reclassification(5,745)
Amount of income reclassified from accumulated other comprehensive income to net income(1,393)
Other comprehensive loss(7,138)
Balance as of March 31, 2025$4,218 

Unrealized Income
 on Derivative
Instruments
Balance as of December 31, 202316,603 
Other comprehensive income before reclassification7,393 
Amount of income reclassified from accumulated other comprehensive income to net income(4,525)
Other comprehensive income2,868 
Balance as of March 31, 2024$19,471 
The following table presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Three Months Ended
March 31,
20252024
Interest rate swap contracts$(1,393)

$(4,525)Interest expense
v3.25.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2025
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 shares of restricted Common Stock and Performance DSUs. The shares of restricted Common Stock contain non-forfeitable dividend distribution rights and are considered participating securities. The Performance DSUs are 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
March 31,
20252024
Earnings:
Net income attributable to common stockholders
$7,898 $14,980 
Less: Income allocated to participating securities
(45)(74)
Net income used in basic earnings per share
7,853 14,906 
Add back: Income allocated to participating securities
45 74 
Net income used in diluted earnings per share
$7,898 $14,980 
Weighted Average Shares:
Basic weighted average number of common shares outstanding
55,130,665 57,113,041 
Dilutive effect of weighted average shares of non-vested restricted common stock
314,110 285,370 
Dilutive effect of weighted average shares of Performance DSUs
176,117 263,096 
Diluted weighted average number of common shares outstanding
55,620,892 57,661,507 
Net income per share attributable to common stockholders:
Basic
$0.14 $0.26 
Diluted
$0.14 $0.26 
v3.25.1
Stock-based Compensation
 3 Months Ended
Mar. 31, 2025
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.
On April 2, 2025, the Board adopted the second amendment to the A&R Incentive Plan, or the Second Amendment, subject to approval by the Company's stockholders at the Company's 2025 annual meeting of stockholders to be held on May 21, 2025. If the Second Amendment is approved by the Company's stockholders, it will, among other things, increase the number of shares authorized for issuance by 1,000,000 shares to 2,250,000 shares.
During the three months ended March 31, 2025, the Company granted time-based awards to its executive officers and certain employees, consisting of 110,141 restricted shares of Common Stock, or the Time-Based 2025 Awards. The Time-Based 2025 Awards will vest 25% annually following the grant date, subject to each executive's and employee's employment through the applicable vesting dates, with certain exceptions. As of March 31, 2025, there was $2,532,000 of total unrecognized stock-based compensation expense related to these awards, which will be recognized over the vesting period.
Additionally, during the three months ended March 31, 2025, the Company's compensation committee granted Performance DSUs to its executive officers, or the Performance-Based 2025 Awards. The Performance-Based 2025 Awards will be measured based on the Company's market performance over a three-year performance period ending on December 31, 2027. Subject to each executive's continuous employment through the applicable vesting dates, with certain exceptions, the Performance-Based 2025 Awards, if any, will be issued following the performance period end date. Market-based awards are valued as of the grant date utilizing a Monte Carlo simulation model that assesses the probability of satisfying certain market-based thresholds over a three-year performance period. The number of shares of Common Stock that vest is based on the Company's total shareholder return, or TSR, relative to that of the MSCI US REIT Index and a Healthcare REIT Peer Group on a percentile basis. As of March 31, 2025, there was $2,432,000 of total unrecognized stock-based compensation expense related to these awards, which will be recognized over the vesting period.
The Time-Based 2025 Awards and the Performance-Based 2025 Awards, or collectively, the 2025 Awards, were granted under and are subject to the terms of the A&R Incentive Plan and award agreements.
The Company recognized total stock-based compensation expense of $1,261,000 and $1,324,000 for the three months ended March 31, 2025 and 2024, respectively. The Company did not recognize accelerated stock-based compensation expense for the three months ended March 31, 2025. The Company recognized accelerated stock-based compensation expense of $863,000 for the three months ended March 31, 2024, primarily as a result of the acceleration of awards pursuant to severance agreements with departed executive officers. 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.
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Tenant Improvements
The Company may provide tenant improvement allowances in new or renewal leases for the purpose of refurbishing or renovating tenant space. The Company may also assume tenant improvement obligations included in leases acquired in its real estate acquisitions. Many of these allowances are subject to contingencies that make it difficult to predict when they will be utilized, if at all.
Unfunded Loan Commitments
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, or the Maturity Date. The Mezzanine Loans bear interest at a rate of 13% per annum for the period commencing November 5, 2024 through November 4, 2027, and 15% per annum for the period commencing November 5, 2027 through the Maturity Date. The Company will receive an upfront fee of 2% of the total loan amount of the Mezzanine Loans due prior to the first disbursement, as well as an additional 1% fee if the Mezzanine Loans have not been paid in full before November 5, 2027 and another 1% fee if the Mezzanine Loans have not been paid in full before November 5, 2028. The Mezzanine Loans include purchase options for the Company for both the inpatient rehabilitation facility and the behavioral healthcare facility upon completion of construction. Unfunded loan commitments include amounts undrawn on the Mezzanine Loans. As of March 31, 2025, no amounts have been drawn on the Mezzanine Loans, and unfunded loan commitments totaled $17,543,000. Prior to making advances on this commitment, the Company will confirm that there has been no material adverse change in the progress of the construction project, financial or otherwise, and there have been no events of default by the borrower and will confirm that the borrower is currently in compliance with the loan terms and conditions. In some cases, the borrower’s access to the full amount of the loan is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds.
Legal Proceedings
In the ordinary course of business, the Company may become subject to litigation or claims. As of March 31, 2025, 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.
v3.25.1
Subsequent Events
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Distributions Authorized
On May 6, 2025, the Board approved and authorized a quarterly cash dividend of $0.40 per share of Common Stock payable on June 4, 2025, to the Company's stockholders of record as of the close of business on May 21, 2025. The quarterly cash dividend of $0.40 per share represents an annualized amount of $1.60 per share.
Acquisition of Dover Healthcare Facility
On April 16, 2025, the Company purchased 100% of the ownership interests in a healthcare property in Dover, Delaware, or the Dover Healthcare Facility, for a contract purchase price of $23,500,000.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net income $ 7,898 $ 14,980
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
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
v3.25.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
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.
Current Expected Credit Losses Reserve
Current Expected Credit Losses Reserve
The current expected credit loss, or CECL, reserve required under Accounting Standards Codification, or ASC, 326, Financial Instruments - Credit Losses, or ASC 326, reflects the Company's current estimate of potential credit losses related to the Company's unfunded commitments on mezzanine loans that the Company has entered into. Other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. Pursuant to ASC 326, a CECL reserve should be estimated for off-balance-sheet exposures over the contractual period in which it is exposed to credit risk via a present contractual obligation to extend credit. The CECL reserve should consider the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company determines the CECL reserve quarterly by using a probability of default/loss given default method. ASC 326 details factors the Company should consider when developing the CECL reserve, including historical loss data, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. Additionally, the Company considers credit quality when developing the CECL reserve, including the borrower credit rating and the underlying collateral and progress of developments, if applicable, among other considerations. The Company considers both of the mezzanine loans as a pool when developing the CECL reserve.
Pursuant to ASC 326, the Company has made an accounting policy election not to measure the CECL reserve for accrued interest receivables, as these will be written off, if deemed uncollectible, in a timely manner. The Company generally suspends the income accrual for loans at the earlier of the date at which payments become 90 days past due or when, in the Company's opinion, recovery of income and principal becomes doubtful.
During the three months ended March 31, 2025, the Company recorded an increase to the current expected credit loss reserve of $171,000 in the accompanying condensed consolidated statements of comprehensive income. The current expected credit loss reserve has a balance of $171,000, related to the Company's unfunded commitments on mezzanine loans, reported within accounts payable and other liabilities on the condensed consolidated balance sheets. See Note 16—"Commitments and Contingencies" for additional details regarding the Company's unfunded commitments on mezzanine loans.
Stock-based Compensation
Stock-based Compensation
On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or 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, officers and employees. The Company accounts for its stock awards in accordance with ASC 718-10, Compensation—Stock Compensation, or ASC 718-10. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). For performance-based awards, compensation costs are recognized over the service period if it is probable that the performance condition will be satisfied, with changes of the assessment at each reporting period and recording the effect of the change in the compensation cost as a cumulative catch-up adjustment. For market-based awards, compensation costs are recognized over the service period regardless of whether the market performance measures are achieved. The Company's performance-based awards and market-based awards are collectively referred to as "Performance DSUs". The compensation costs for restricted stock are recognized based on the fair value of the restricted stock awards at grant date, which is equal to the market value of the Company's Common Stock on that date of grant. Prior to the Company's listing on the NYSE, the fair value was estimated based on the most recent per share net asset value. The Company recognizes the impact of forfeitures as they occur.
Changes in Presentation
Changes in Presentation
The Company previously presented expenses related to its June 13, 2024 listing on the NYSE within general and administrative expenses. These amounts have been reclassified to listing-related expenses in the accompanying condensed consolidated statements of comprehensive income for the prior period to conform to the current period presentation.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses to improve disclosures about an entity's expenses and to provide detailed information about the types of expenses in commonly presented expense captions. ASU 2024-03 requires disclosures about specific expense categories including purchases of inventory, employee compensation, depreciation, amortization and selling expenses. Additionally, ASU 2024-03 requires a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods for fiscal years beginning after December 15, 2027, and should be applied either prospectively for reporting periods after the effective date of the ASU or retrospectively to all periods presented. Early adoption is permitted. The Company expects the adoption of this standard to expand its annual and interim expense disclosures, but otherwise have no impact on the condensed consolidated financial statements.
v3.25.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2025
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):
Three Months Ended
March 31,
20252024
Beginning of period:
Cash and cash equivalents$39,844 $202,019 
Restricted cash— 166 
Cash, cash equivalents and restricted cash$39,844 $202,185 
End of period:
Cash and cash equivalents$30,458 $90,242 
Restricted cash— 

166 
Cash, cash equivalents and restricted cash$30,458 $90,408 
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):
Three Months Ended
March 31,
20252024
Beginning of period:
Cash and cash equivalents$39,844 $202,019 
Restricted cash— 166 
Cash, cash equivalents and restricted cash$39,844 $202,185 
End of period:
Cash and cash equivalents$30,458 $90,242 
Restricted cash— 

166 
Cash, cash equivalents and restricted cash$30,458 $90,408 
v3.25.1
Real Estate (Tables)
 3 Months Ended
Mar. 31, 2025
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 the acquisition during the three months ended March 31, 2025 (amounts in thousands):
Property Description Date AcquiredOwnership Percentage
Cash Consideration Transferred
(amount in thousands)
Knoxville Healthcare Facility 03/04/2025100%$35,320 
Total $35,320 
Schedule of Allocation of Acquisitions
Total
Building and improvements$26,515 
Tenant improvements4,001 
In-place leases2,977 
Right-of-use assets - finance lease1,901 
Total assets acquired35,394 
Finance lease liabilities(74)
Total liabilities assumed(74)
Net assets acquired$35,320 
v3.25.1
Intangible Assets, Net (Tables)
 3 Months Ended
Mar. 31, 2025
Finite-Lived Intangible Assets, Net [Abstract]  
Schedule of Intangible Assets, Net
Intangible assets, net, consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands, except weighted average remaining life amounts):
 March 31, 2025December 31, 2024
In-place leases, net of accumulated amortization of $119,558 and $114,774, respectively (with a weighted average remaining life of 7.1 years and 7.3 years, respectively)
$118,592 $120,399 
Above-market leases, net of accumulated amortization of $7,620 and $7,434, respectively (with a weighted average remaining life of 7.3 years and 7.6 years, respectively)
5,070 5,256 
$123,662 $125,655 
v3.25.1
Intangible Liabilities, Net (Tables)
 3 Months Ended
Mar. 31, 2025
Intangible Lease Liabilities, Net [Abstract]  
Schedule of Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands, except weighted average remaining life amounts):
March 31, 2025December 31, 2024
Below-market leases, net of accumulated amortization of $9,076 and $8,761, respectively (with a weighted average remaining life of 5.9 years and 6.1 years, respectively)
$6,755 $7,070 
v3.25.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Schedule of Rental Revenue from Operating Leases
The following table summarizes the Company's rental revenue from operating leases for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
March 31,
 20252024
Rental income
$44,097 $46,797 
Variable lease income
4,159 3,842 
Total rental revenue
$48,256 $50,639 
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 March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):
March 31, 2025(1)
Period ending December 31, 2025$126,433 
2026165,651 
2027162,670 
2028158,117 
2029153,400 
Thereafter1,108,823 
Total$1,875,094 
(1)The table includes payments from a tenant who is on the cash basis of accounting for revenue recognition purposes that has continued to make rental payments as of March 31, 2025.
Schedule of Future Minimum Rent from Lessee for Operating Leases
The future rent payments under non-cancellable leases in effect as of March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Operating
Finance
Period ending December 31, 2025$2,052 $9 
20262,811 9 
20272,852 9 
20282,868 9 
20292,603 9 
Thereafter103,513 58 
Total undiscounted rental payments116,699 103 
Less imputed interest(75,357)(29)
Total lease liabilities$41,342 $74 

The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's operating leases are as follows:
 March 31, 2025December 31, 2024
Weighted average IBR5.5 %5.5 %
Weighted average remaining lease term35.1 years35.2 years
The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's finance lease is as follows:
 March 31, 2025December 31, 2024
IBR
5.8 %— %
Remaining lease term
11.3 years— 
Finance Lease, Liability, to be Paid, Maturity
The future rent payments under non-cancellable leases in effect as of March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Operating
Finance
Period ending December 31, 2025$2,052 $9 
20262,811 9 
20272,852 9 
20282,868 9 
20292,603 9 
Thereafter103,513 58 
Total undiscounted rental payments116,699 103 
Less imputed interest(75,357)(29)
Total lease liabilities$41,342 $74 

The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's operating leases are as follows:
 March 31, 2025December 31, 2024
Weighted average IBR5.5 %5.5 %
Weighted average remaining lease term35.1 years35.2 years
The weighted average IBR and weighted average remaining lease term as of March 31, 2025 and December 31, 2024 for the Company's finance lease is as follows:
 March 31, 2025December 31, 2024
IBR
5.8 %— %
Remaining lease term
11.3 years— 
Schedule of Lease Cost
The following table provides details of the Company's total lease costs for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Three Months Ended
March 31,
Location in Condensed Consolidated Statements of Comprehensive Income20252024
Operating lease costs:
Ground lease costs(1)
Rental expenses$689 $682 
Corporate operating lease costsGeneral and administrative expenses183 189 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$244 $176 
Right-of-use assets obtained in exchange for new finance lease liabilities$74 $— 
(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.
v3.25.1
Other Assets (Tables)
 3 Months Ended
Mar. 31, 2025
Other Assets [Abstract]  
Schedule of Other Assets
Other assets consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands):
 March 31, 2025December 31, 2024
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $190 and $2,988, respectively
$6,360 $1,203 
Leasing commissions, net of accumulated amortization of $354 and $306, respectively
2,368 1,941 
Tenant receivables4,960 3,281 
Straight-line rent receivable60,544 58,400 
Real estate deposits500 350 
Prepaid and other assets2,638 3,392 
Derivative assets - interest rate swaps6,024 11,356 
$83,394 $79,923 
v3.25.1
Accounts Payable and Other Liabilities (Tables)
 3 Months Ended
Mar. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of March 31, 2025 and December 31, 2024 (amounts in thousands):
 March 31, 2025December 31, 2024
Accounts payable and accrued expenses$7,016 $6,303 
Accrued interest expense2,183 2,187 
Accrued property taxes4,026 3,897 
Accrued personnel costs1,703 6,660 
Performance DSUs distributions payable352 544 
Tenant deposits1,691 1,691 
Deferred rental income11,933 12,123 
Derivative liabilities - interest rate swaps1,806 — 
Current expected credit loss reserve for unfunded loan commitments 171 — 
$30,881 $33,405 
v3.25.1
Credit Facility (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Credit Facility
The Company's outstanding credit facility as of March 31, 2025 and December 31, 2024 consisted of the following (amounts in thousands):
Weighted
Average Contractual Rate(1)
March 31, 2025December 31, 2024
2029 Variable rate revolving line of credit5.58%$32,000 $— 
2027 Variable rate term loan fixed through interest rate swaps(2)
5.11%250,000 250,000 
2028 Variable rate term loan fixed through interest rate swaps(3)
4.18%275,000 275,000 
Total credit facility, principal amount outstanding4.68%557,000 525,000 
Unamortized deferred financing costs related to credit facility term loans(2,885)(3,079)
Total credit facility, net of deferred financing costs$554,115 $521,921 
(1)Weighted average contractual rate is as of March 31, 2025.
(2)Fixed through four interest rate swaps that mature on March 20, 2029.
(3)Fixed through six interest rate swaps that mature on January 31, 2028.
Schedule of Future Principal Payments Due on Debt
The principal payments due on the credit facility as of March 31, 2025, for the period ending December 31, 2025, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Amount
Period ending December 31, 2025$— 
2026— 
2027250,000 
2028275,000 
202932,000 
Thereafter— 
$557,000 
v3.25.1
Fair Value (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 (amounts in thousands):
 March 31, 2025
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $6,024 $— $6,024 
Total assets at fair value$— $6,024 $— $6,024 
Liabilities:
Derivative liabilities - interest rate swaps$— $1,806 $— $1,806 
Total liabilities at fair value$— $1,806 $— $1,806 
 December 31, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets - interest rate swaps$— $11,356 $— $11,356 
Total assets at fair value$— $11,356 $— $11,356 
v3.25.1
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2025
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		March 31, 2025December 31, 2024
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)
2.83%05/02/2022 to 05/01/202301/31/2028275,000 6,024 (267)275,000 9,261 — 
Interest rate swaps(1)
3.76%12/31/202403/20/2029250,000 — (1,539)250,000 2,095 — 
$525,000 $6,024 $(1,806)$525,000 $11,356 $— 
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
Schedule of Income and Losses Recognized on Derivative Instruments
The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of (Loss) Income Recognized
in Other Comprehensive Income on Derivatives		Location of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2025
Interest rate swaps$(5,745)Interest expense$1,393 $(7,325)
Three Months Ended March 31, 2024
Interest rate swaps$7,393 Interest expense$4,525 $(5,294)
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 March 31, 2025 and December 31, 2024 (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
March 31, 2025$6,024 $— $6,024 $(766)$— $5,258 
December 31, 2024$11,356 $— $11,356 $— $— $11,356 
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
March 31, 2025$1,806 $— $1,806 $(766)$— $1,040 
December 31, 2024$— $— $— $— $— $— 
v3.25.1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2025
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 three months ended March 31, 2025 and 2024 (amounts in thousands):
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2024$11,356 
Other comprehensive loss before reclassification(5,745)
Amount of income reclassified from accumulated other comprehensive income to net income(1,393)
Other comprehensive loss(7,138)
Balance as of March 31, 2025$4,218 

Unrealized Income
 on Derivative
Instruments
Balance as of December 31, 202316,603 
Other comprehensive income before reclassification7,393 
Amount of income reclassified from accumulated other comprehensive income to net income(4,525)
Other comprehensive income2,868 
Balance as of March 31, 2024$19,471 
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The following table presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2025 and 2024 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Three Months Ended
March 31,
20252024
Interest rate swap contracts$(1,393)

$(4,525)Interest expense
v3.25.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2025
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
March 31,
20252024
Earnings:
Net income attributable to common stockholders
$7,898 $14,980 
Less: Income allocated to participating securities
(45)(74)
Net income used in basic earnings per share
7,853 14,906 
Add back: Income allocated to participating securities
45 74 
Net income used in diluted earnings per share
$7,898 $14,980 
Weighted Average Shares:
Basic weighted average number of common shares outstanding
55,130,665 57,113,041 
Dilutive effect of weighted average shares of non-vested restricted common stock
314,110 285,370 
Dilutive effect of weighted average shares of Performance DSUs
176,117 263,096 
Diluted weighted average number of common shares outstanding
55,620,892 57,661,507 
Net income per share attributable to common stockholders:
Basic
$0.14 $0.26 
Diluted
$0.14 $0.26 
v3.25.1
Organization and Business Operations (Details) - $ / shares
 3 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Operating Partnership    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Ownership interest (as a percentage) 100.00%  
v3.25.1
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]        
Cash and cash equivalents $ 30,458 $ 39,844 $ 90,242 $ 202,019
Restricted cash 0 0 166 166
Cash, cash equivalents and restricted cash $ 30,458 $ 39,844 $ 90,408 $ 202,185
v3.25.1
Summary of Significant Accounting Policies - Current Expected Credit Losses Reserve (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Accounting Policies [Abstract]      
Increase in current expected credit loss reserve $ 171 $ 0  
Current expected credit loss reserve for unfunded loan commitments $ 171   $ 0
v3.25.1
Real Estate - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 27, 2024
USD ($)
Mar. 31, 2025
USD ($)
property
tenant
Mar. 31, 2024
USD ($)
Real Estate [Line Items]      
Number of real estate properties acquired | property   1  
Capitalized acquisition costs   $ 202  
Impairment losses   $ 3,531 $ 0
Impairment of lease liabilities     1,013
In-place leases      
Real Estate [Line Items]      
Impairment of intangible assets     2,082
Above-market leases      
Real Estate [Line Items]      
Impairment of intangible assets     158
One Tenant | Revenue | Customer Concentration Risk      
Real Estate [Line Items]      
Number of major tenants | tenant   1  
Post Acute Medical LLC and affiliates | Revenue | Customer Concentration Risk      
Real Estate [Line Items]      
Concentration risk, percentage   16.20%  
Steward Health Care System LLC      
Real Estate [Line Items]      
Impairment losses   $ 3,531  
GenesisCare Master Lease      
Real Estate [Line Items]      
Severance fees $ 2,000    
Straight line basis rental revenue   $ 57 $ 3
v3.25.1
Real Estate - Schedule of Consideration Transferred for Properties Acquired (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 04, 2025
Mar. 31, 2025
Business Acquisition [Line Items]    
Cash Consideration transferred   $ 35,320
Knoxville Healthcare Facility    
Business Acquisition [Line Items]    
Ownership Percentage 100.00%  
Cash Consideration transferred $ 35,320  
v3.25.1
Real Estate - Schedule of Allocation of Acquisitions (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Real Estate [Abstract]  
Building and improvements $ 26,515
Tenant improvements 4,001
In-place leases 2,977
Right-of-use assets - finance lease 1,901
Total assets acquired 35,394
Finance lease liabilities (74)
Total liabilities assumed (74)
Net assets acquired $ 35,320
v3.25.1
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 127,178 $ 122,208
Weighted average remaining useful life of intangible assets (in years) 7 years 1 month 6 days 7 years 3 months 18 days
Intangible assets, net of accumulated amortization $ 123,662 $ 125,655
In-place leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 119,558 $ 114,774
Weighted average remaining useful life of intangible assets (in years) 7 years 1 month 6 days 7 years 3 months 18 days
Intangible assets, net of accumulated amortization $ 118,592 $ 120,399
Above-market leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 7,620 $ 7,434
Weighted average remaining useful life of intangible assets (in years) 7 years 3 months 18 days 7 years 7 months 6 days
Intangible assets, net of accumulated amortization $ 5,070 $ 5,256
v3.25.1
Intangible Assets, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Finite-Lived Intangible Assets, Net [Abstract]      
Weighted average remaining useful life of intangible assets (in years) 7 years 1 month 6 days   7 years 3 months 18 days
Amortization of intangible assets $ 4,970 $ 7,478  
v3.25.1
Intangible Liabilities, Net - Schedule of Intangible Liabilities, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Intangible Lease Liabilities, Net [Abstract]    
Accumulated amortization of below-market leases $ 9,076 $ 8,761
Weighted average remaining life of below-market leases 5 years 10 months 24 days 6 years 1 month 6 days
Below-market leases, net of accumulated amortization $ 6,755 $ 7,070
v3.25.1
Intangible Liabilities, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Intangible Lease Liabilities, Net [Abstract]    
Amortization of below-market leases $ 315 $ 1,387
v3.25.1
Leases - Schedule of Rental Revenue from Operating Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Leases [Abstract]    
Rental income $ 44,097 $ 46,797
Variable lease income 4,159 3,842
Total rental revenue $ 48,256 $ 50,639
v3.25.1
Leases - Schedule of Future Minimum Rent to Lessor from Operating Leases (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Leases [Abstract]  
Period ending December 31, 2025 $ 126,433
2026 165,651
2027 162,670
2028 158,117
2029 153,400
Thereafter 1,108,823
Total $ 1,875,094
v3.25.1
Leases - Schedule of Rent Payments (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Period ending December 31, 2025 $ 2,052  
2026 2,811  
2027 2,852  
2028 2,868  
2029 2,603  
Thereafter 103,513  
Total undiscounted rental payments 116,699  
Less imputed interest (75,357)  
Total lease liabilities 41,342 $ 41,493
Period ending December 31, 2025 9  
2026 9  
2027 9  
2028 9  
2029 9  
Thereafter 58  
Total undiscounted rental payments 103  
Less imputed interest (29)  
Total lease liabilities $ 74 $ 0
Weighted average IBR 5.50% 5.50%
Weighted average remaining lease term 35 years 1 month 6 days 35 years 2 months 12 days
IBR - Finance Lease 5.80% 0.00%
Remaining lease term - Finance Lease 11 years 3 months 18 days 0 years
v3.25.1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Supplemental disclosure of cash flows information:    
Operating cash outflows for operating leases $ 244 $ 176
Right-of-use assets obtained in exchange for new finance lease liabilities 74 0
Rental expenses    
Lessee, Lease, Description [Line Items]    
Operating lease costs: 689 682
General and administrative expenses    
Lessee, Lease, Description [Line Items]    
Operating lease costs: $ 183 $ 189
v3.25.1
Leases - Narrative (Details)
Mar. 31, 2025
lease_agreement
Leases [Abstract]  
Number of non cancellable lease agreements 1
v3.25.1
Other Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Other Assets [Abstract]    
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $190 and $2,988, respectively $ 6,360 $ 1,203
Leasing commissions, net of accumulated amortization of $354 and $306, respectively 2,368 1,941
Tenant receivables 4,960 3,281
Straight-line rent receivable 60,544 58,400
Real estate deposits 500 350
Prepaid and other assets 2,638 3,392
Derivative assets - interest rate swaps 6,024 11,356
Total other assets 83,394 79,923
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization 190 2,988
Leasing commissions, accumulated amortization $ 354 $ 306
v3.25.1
Accounts Payable and Other Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accounts payable and accrued expenses $ 7,016 $ 6,303
Accrued interest expense 2,183 2,187
Accrued property taxes 4,026 3,897
Accrued personnel costs 1,703 6,660
Performance DSUs distributions payable 352 544
Tenant deposits 1,691 1,691
Deferred rental income 11,933 12,123
Derivative liabilities - interest rate swaps 1,806 0
Current expected credit loss reserve for unfunded loan commitments 171 0
Total accounts payable and other liabilities $ 30,881 $ 33,405
v3.25.1
Credit Facility - Schedule of Credit Facility (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
swap_agreement
Dec. 31, 2024
USD ($)
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 4.68%  
Total credit facility, principal amount outstanding $ 557,000 $ 525,000
Unamortized deferred financing costs related to credit facility term loans (2,885) (3,079)
Total credit facility, net of deferred financing costs $ 554,115 521,921
Revolving Line of Credit | 2029 Variable Rate Line of Credit    
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 5.58%  
Total credit facility, principal amount outstanding $ 32,000 0
Term Loan | 2027 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Weighted Average Contractual Rate 5.11%  
Total credit facility, principal amount outstanding $ 250,000 250,000
Number of interest rates swaps | swap_agreement 4  
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_agreement 6  
v3.25.1
Credit Facility - Narrative (Details)
 3 Months Ended
Feb. 18, 2025
USD ($)
extension
Mar. 31, 2025
USD ($)
Mar. 31, 2024
USD ($)
Line of Credit Facility [Line Items]      
Loss on extinguishment of debt   $ 233,000 $ 228,000
Revolving Line of Credit      
Line of Credit Facility [Line Items]      
Extension period 6 months    
Number of extensions | extension 2    
Revolving Line of Credit | Minimum      
Line of Credit Facility [Line Items]      
Commitment fee percentage 0.15%    
Revolving Line of Credit | Minimum | Base Rate      
Line of Credit Facility [Line Items]      
Margin range 0.25%    
Revolving Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR)      
Line of Credit Facility [Line Items]      
Margin range 1.25%    
Revolving Line of Credit | Maximum      
Line of Credit Facility [Line Items]      
Commitment fee percentage 0.20%    
Revolving Line of Credit | Maximum | Base Rate      
Line of Credit Facility [Line Items]      
Margin range 0.90%    
Revolving Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR)      
Line of Credit Facility [Line Items]      
Margin range 1.90%    
Revolving Line of Credit | Line of Credit      
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity $ 1,500,000,000    
Revolving Line of Credit | 2029 Variable Rate Line of Credit | Line of Credit      
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity 600,000,000    
Revolving Line of Credit | 2026 Variable Rate Line of Credit | Line of Credit      
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity $ 500,000,000    
v3.25.1
Credit Facility - Schedule of Principal Payments Due on Credit Facility (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Debt Disclosure [Abstract]  
Period ending December 31, 2025 $ 0
2026 0
2027 250,000
2028 275,000
2029 32,000
Thereafter 0
Total $ 557,000
v3.25.1
Segment Reporting (Details)
 3 Months Ended
Mar. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable business segments 1
v3.25.1
Fair Value - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
USD ($)
property
Dec. 31, 2024
USD ($)
property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total credit facility, principal amount outstanding $ 557,000 $ 525,000
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accounts payable and other liabilities Accounts payable and other liabilities
Real estate assets $ 1,721,750 $ 1,707,620
Steward Health Care System LLC    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impairment loss on real estate $ 3,531  
Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Number of real estates assets | property 1 0
Real estate assets $ 7,000  
v3.25.1
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Assets:    
Derivative assets - interest rate swaps $ 6,024 $ 11,356
Liabilities:    
Derivative liabilities - interest rate swaps 1,806 0
Recurring basis    
Assets:    
Total assets at fair value 6,024 11,356
Liabilities:    
Total liabilities at fair value 1,806  
Recurring basis | Interest rate swaps    
Assets:    
Derivative assets - interest rate swaps 6,024 11,356
Liabilities:    
Derivative liabilities - interest rate swaps 1,806  
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  
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  
Significant Other Observable Inputs (Level 2) | Recurring basis    
Assets:    
Total assets at fair value 6,024 11,356
Liabilities:    
Total liabilities at fair value 1,806  
Significant Other Observable Inputs (Level 2) | Recurring basis | Interest rate swaps    
Assets:    
Derivative assets - interest rate swaps 6,024 11,356
Liabilities:    
Derivative liabilities - interest rate swaps 1,806  
Significant Unobservable Inputs (Level 3) | Recurring basis    
Assets:    
Total assets at fair value 0 0
Liabilities:    
Total liabilities at fair value 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  
v3.25.1
Derivative Instruments and Hedging Activities - Narrative (Details)
Mar. 31, 2025
USD ($)
swap_agreement
mature
Dec. 31, 2024
USD ($)
Derivative [Line Items]    
Additional gain expected to be reclassified from AOCI into earnings during next twelve months | $ $ 3,327,000  
Derivative, counterparties in net liability position, aggregate fair value | $ $ 1,020,000 $ 0
Interest rate swaps | Designated as Hedging Instrument    
Derivative [Line Items]    
Number of interest rate swaps | swap_agreement 10  
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing January 31, 2028 | Designated as Hedging Instrument    
Derivative [Line Items]    
Number of interest rate swaps | mature 6  
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing March 20, 2029 | Designated as Hedging Instrument    
Derivative [Line Items]    
Number of interest rate swaps | swap_agreement 4  
v3.25.1
Derivative Instruments and Hedging Activities - Schedule of the Notional Amount and Fair Value of Derivative Instruments (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Derivatives, Fair Value [Line Items]    
Weighted Average Fixed Interest Rate 4.68%  
Fair Value of Assets $ 6,024 $ 11,356
Fair Value of Liabilities (1,806) 0
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 6,024 11,356
Interest rate swaps | Liabilities | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Liabilities $ (1,806) 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 6,024 9,261
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 $ (267) 0
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing March 20, 2029    
Derivatives, Fair Value [Line Items]    
Weighted Average Fixed Interest Rate 3.76%  
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing March 20, 2029 | 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 March 20, 2029 | Assets | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Assets 0 2,095
Interest rate swaps | Variable Rate Term Loan, Subject To Interest Rate Swap, Maturing March 20, 2029 | Liabilities | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Fair Value of Liabilities $ (1,539) $ 0
v3.25.1
Derivative Instruments and Hedging Activities - Schedule of Income and Losses Recognized on Derivative Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Derivative Instruments, Gain (Loss) [Line Items]    
Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income $ (7,325) $ (5,294)
Interest rate swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of (Loss) Income Recognized in Other Comprehensive Income on Derivatives (5,745) 7,393
Interest rate swaps | Interest expense    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Income Reclassified From Accumulated Other Comprehensive Income to Net Income $ 1,393 $ 4,525
v3.25.1
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 6,024 $ 11,356
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Assets Presented in the Balance Sheet 6,024 11,356
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral (766) 0
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral 0 0
Net Amount $ 5,258 $ 11,356
v3.25.1
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Liabilities $ 1,806 $ 0
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Liabilities Presented in the Balance Sheet 1,806 0
Financial Instruments Collateral (766) 0
Cash Collateral 0 0
Net Amount $ 1,040 $ 0
v3.25.1
Stockholders' Equity - Narrative (Details)
 3 Months Ended 12 Months Ended
May 06, 2025
$ / shares
Apr. 08, 2024
Mar. 31, 2025
USD ($)
$ / shares
shares
Mar. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
shares
Aug. 16, 2024
USD ($)
shares
Class of Stock [Line Items]            
Reverse stock split, conversion ratio   0.25        
Distributions paid per common share (in dollars per share) | $ / shares     $ 0.40 $ 0.40    
Distributions declared per common share (in dollars per share) | $ / shares     $ 0.40 $ 0.40    
Share repurchase program, authorized shares (in shares)           1,500,000
Share repurchase program, authorized amount | $           $ 25,000,000
Share repurchase program, authorized remaining amount | $     $ 25,000,000   $ 25,000,000  
Repurchase of common stock | $     $ 1,145,000 $ 4,286,000    
Subsequent Event            
Class of Stock [Line Items]            
Distributions declared per common share (in dollars per share) | $ / shares $ 0.40          
Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)     47,229 143,283    
Repurchase of common stock | $     $ 1,000 $ 1,000    
Repurchase of common stock, average price per share (in dollars per share) | $ / shares     $ 24.24      
Class A, I and T Shares | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       143,283    
Repurchase of common stock | $       $ 4,286,000    
Repurchase of common stock, average price per share (in dollars per share) | $ / shares       $ 29.92    
Common Class A | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       128,492    
Common Class I | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       3,104    
Common Class T | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       11,687    
Share repurchase program [Member]            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)     0   0  
v3.25.1
Stockholders' Equity - Amounts Recognized in AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance beginning $ 1,403,185 $ 1,494,435
Balance ending 1,381,764 1,492,507
Unrealized Income (Loss) on Derivative Instruments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance beginning 11,356 16,603
Other comprehensive income (loss) before reclassification (5,745) 7,393
Amount of income reclassified from accumulated other comprehensive income to net income (1,393) (4,525)
Other comprehensive (loss) income (7,138) 2,868
Balance ending $ 4,218 $ 19,471
v3.25.1
Stockholders' Equity - Reclassifications Out of AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Interest rate swap contracts $ (7,898) $ (14,980)
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 $ (1,393) $ (4,525)
v3.25.1
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings:    
Net income attributable to common stockholders $ 7,898 $ 14,980
Less: Income allocated to participating securities (45) (74)
Net income used in basic earnings per share 7,853 14,906
Add back: Income allocated to participating securities 45 74
Net income used in diluted earnings per share $ 7,898 $ 14,980
Weighted Average Shares:    
Basic weighted average number of common shares outstanding (in shares) 55,130,665 57,113,041
Diluted weighted average number of common shares outstanding (in shares) 55,620,892 57,661,507
Net income per share attributable to common stockholders:    
Basic (in dollars per share) $ 0.14 $ 0.26
Diluted (in dollars per share) $ 0.14 $ 0.26
Restricted Stock    
Weighted Average Shares:    
Dilutive effect of weighted average shares (in shares) 314,110 285,370
Performance DSUs    
Weighted Average Shares:    
Dilutive effect of weighted average shares (in shares) 176,117 263,096
v3.25.1
Stock-based Compensation - Narrative (Details) - USD ($)
 3 Months Ended
Apr. 02, 2025
Mar. 31, 2025
Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation   $ 1,261,000 $ 1,324,000
Accelerated stock-based compensation   $ 0 $ 863,000
Subsequent Event      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Increase in number of shares authorized (in shares) 1,000,000    
Number of shares authorized (in shares) 2,250,000    
Restricted Stock, Time-Based      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Awards granted (in shares)   110,141  
Award vesting under plan, percentage per annum   25.00%  
Unrecognized stock-based compensation expense   $ 2,532,000  
Restricted Stock, Performance-Based      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized stock-based compensation expense   $ 2,432,000  
Share-based compensation arrangement by share-based payment award, performance period   3 years  
v3.25.1
Commitments and Contingencies (Details)
legal_proceeding in Thousands, $ in Thousands
Nov. 05, 2024
USD ($)
loan
Mar. 31, 2025
USD ($)
legal_proceeding
Loss Contingencies [Line Items]    
Number of mezzanine loans | loan 2  
Number of pending legal proceedings to which the company is a party | legal_proceeding   0
Unfunded Loan Commitment    
Loss Contingencies [Line Items]    
Mezzanine loans   $ 17,543
Upfront fee 2.00%  
Unfunded Loan Commitment | Covenant term one    
Loss Contingencies [Line Items]    
Interest rate 13.00%  
Additional fee percentage 1.00%  
Unfunded Loan Commitment | Covenant term two    
Loss Contingencies [Line Items]    
Interest rate 15.00%  
Additional fee percentage 1.00%  
Inpatient Rehabilitation Facility | Unfunded Loan Commitment    
Loss Contingencies [Line Items]    
Mezzanine loans $ 12,543  
Behavioral Healthcare Facility | Unfunded Loan Commitment    
Loss Contingencies [Line Items]    
Mezzanine loans $ 5,000  
v3.25.1
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
May 06, 2025
Apr. 16, 2025
Mar. 31, 2025
Mar. 31, 2024
Subsequent Event [Line Items]        
Distributions declared per common share (in dollars per share)     $ 0.40 $ 0.40
Purchase price     $ 35,320  
Subsequent Event        
Subsequent Event [Line Items]        
Distributions declared per common share (in dollars per share) $ 0.40      
Annualized distribution per share (in dollars per share) $ 1.60      
Dover Healthcare Facility | Subsequent Event        
Subsequent Event [Line Items]        
Ownership Percentage   100.00%    
Purchase price   $ 23,500