What changed in Strawberry Fields REIT, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of Strawberry Fields REIT, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+151 added−157 removedSource: 10-K (2026-03-19) vs 10-K (2025-03-13)
Top changes in Strawberry Fields REIT, Inc.'s 2025 10-K
151 paragraphs added · 157 removed · 119 edited across 7 sections
- Item 7. Management's Discussion & Analysis+70 / −78 · 46 edited
- Item 1. Business+55 / −57 · 55 edited
- Item 3. Legal Proceedings+9 / −5 · 3 edited
- Item 5. Market for Registrant's Common Equity+8 / −8 · 6 edited
- Item 2. Properties+5 / −5 · 5 edited
Item 1. Business
Business — how the company describes what it does
55 edited+0 added−2 removed185 unchanged
Item 1. Business
Business — how the company describes what it does
55 edited+0 added−2 removed185 unchanged
2024 filing
2025 filing
Biggest changeWayne IN SNF 77 2029 31,500 100 % 691,113 0.5 % 21.94 548 South 100 West LLC The Waters of Hartford City SNF, LLC Hartford City IN SNF 65 2029 22,400 100 % 583,407 0.4 % 26.04 2901 West 37th Avenue LLC The Waters of Hobart SNF, LLC Hobart IN SNF 110 2029 43,854 100 % 987,305 0.7 % 22.51 1500 Grant Street LLC The Waters of Huntington SNF, LLC Huntington IN SNF 85 2029 44,957 100 % 762,917 0.6 % 16.97 787 North Detroit Street LLC The Waters of LaGrange SNF, LLC Lagrange IN SNF 100 2029 31,133 100 % 897,550 0.7 % 28.83 981 Beechwood Avenue LLC The Waters of Middletown SNF, LLC Middletown IN SNF 60 2029 18,500 100 % 538,530 0.4 % 29.11 317 Blair Pike LLC The Waters of Peru SNF, LLC Peru IN SNF 130 2029 60,230 100 % 1,166,815 0.9 % 19.37 815 West Washington Street LLC The Waters of Rockport SNF Rockport IN SNF 60 2029 25,000 100 % 538,530 0.4 % 21.54 612 East 11th Street LLC The Waters of Rushville SNF Rushville IN SNF 98 2029 16,572 100 % 879,599 0.7 % 53.08 505 West Wolfe Street LLC The Waters of Sullivan SNF Sullivan IN SNF 93 2029 15,600 100 % 834,721 0.6 % 53.51 500 East Pickwick Drive LLC The Waters of Syracuse SNF Syracuse IN SNF 66 2029 26,000 100 % 592,383 0.4 % 22.78 300 Fairgrounds Road LLC The Waters of Tipton SNF Tipton IN SNF 150 2029 30,970 100 % 1,346,325 1.0 % 43.47 1900 Alber Street LLC The Waters of Wabash SNF East Wabash IN SNF 84 2029 29,762 100 % 753,942 0.6 % 25.33 1720 Alber Street LLC The Waters of Wabash SNF West Wabash IN SNF 44 2029 12,956 100 % 394,922 0.3 % 30.48 300 North Washington Street LLC The Waters of Wakarusa SNF Wakarusa IN SNF 133 2029 48,000 100 % 1,193,741 0.9 % 24.87 8400 Clearvista Place LLC The Waters of Castleton ALF, LLC Indianapolis IN ALF 54 2029 43,900 100 % 484,677 0.4 % 11.04 787 North Detroit Street LLC The Waters of LaGrange ALF, LLC Lagrange IN ALF 17 2029 20,756 100 % 152,583 0.1 % 7.35 612 East 11th Street LLC The Waters of Rushville ALF, LLC Rushville IN ALF 29 2029 11,048 100 % 260,289 0.2 % 23.56 505 West Wolfe Street LLC The Waters of Sullivan ALF, LLC Sullivan IN ALF 32 2029 10,400 100 % 287,216 0.2 % 27.62 300 North Washington Street LLC The Waters of Wakarusa ALF, LLC Wakarusa IN ALF 61 2029 48,630 100 % 547,505 0.4 % 11.26 Master Lease Texas 1 1621 Coit Road Realty, LLC Landmark of Plano Nursing and Rehab Plano TX SNF 160 2033 74,718 100 % 723,520 0.5 % 9.68 5601 Plum Creek Drive Realty, LLC Landmark of Amarillo Nursing and Rehab Amarillo TX SNF 99 2033 90,046 100 % 447,678 0.3 % 4.97 2301 North Oregon Realty, LLC Grace Point Wellness Center El Paso TX SNF 182 2033 19,895 100 % 823,004 0.6 % 41.37 Master Lease Texas 2 2001 Avenue E, LLC Community Care Center of Hondo Hondo TX SNF 75 2034 18,572 100 % 516,213 0.4 % 27.80 1213 Water Street, LLC Waterside Nursing and Rehabilitation Kerrville TX SNF 179 2034 37,012 100 % 1,232,029 0.9 % 33.29 Master Lease Missouri 11515 Troost Avenue LLC Bridgewood Health Care Center Kansas City MO SNF 166 2033 75,045 100 % 1,501,056 1.1 % 20.00 902 Manor Drive LLC Chariton Park Healthcare Center Salisbury MO SNF 120 2033 33,675 100 % 1,085,101 0.8 % 32.22 11400 Mehl Avenue LLC Crestwood Health Care Center Florissant MO SNF 150 2033 39,346 100 % 1,356,376 1.0 % 34.47 1622 East 28th Street LLC Eastview Manor Care Center Trenton MO SNF 90 2033 24,667 100 % 813,826 0.6 % 32.99 2800 Hwy TT LLC Four Seasons Living Center Sedalia MO SNF 239 2033 112,191 100 % 2,161,160 1.6 % 19.26 52435 Infirmary Road LLC Milan Healthcare Center Milan MO SNF 100 2033 27,425 100 % 904,251 0.7 % 32.97 2041 Silva Lane LLC North Village Park Moberly MO SNF 183 2033 22,500 100 % 1,654,779 1.2 % 73.55 649 South Walnut LLC St.
Biggest changeWayne IN SNF 77 2034 31,500 100 % 691,113 0.5 % 21.94 548 South 100 West LLC The Waters of Hartford City SNF, LLC Hartford City IN SNF 65 2034 22,400 100 % 583,407 0.4 % 26.04 2901 West 37th Avenue LLC The Waters of Hobart SNF, LLC Hobart IN SNF 110 2034 43,854 100 % 987,305 0.7 % 22.51 1500 Grant Street LLC The Waters of Huntington SNF, LLC Huntington IN SNF 85 2034 44,957 100 % 762,917 0.5 % 16.97 787 North Detroit Street LLC The Waters of LaGrange SNF, LLC Lagrange IN SNF 100 2034 31,133 100 % 897,550 0.6 % 28.83 981 Beechwood Avenue LLC The Waters of Middletown SNF, LLC Middletown IN SNF 60 2034 18,500 100 % 538,530 0.4 % 29.11 14 Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF 317 Blair Pike LLC The Waters of Peru SNF, LLC Peru IN SNF 130 2034 60,230 100 % 1,166,815 0.8 % 19.37 815 West Washington Street LLC The Waters of Rockport SNF Rockport IN SNF 60 2034 25,000 100 % 538,530 0.4 % 21.54 612 East 11th Street LLC The Waters of Rushville SNF Rushville IN SNF 98 2034 16,572 100 % 879,599 0.6 % 53.08 505 West Wolfe Street LLC The Waters of Sullivan SNF Sullivan IN SNF 93 2034 15,600 100 % 834,721 0.6 % 53.51 500 East Pickwick Drive LLC The Waters of Syracuse SNF Syracuse IN SNF 66 2034 26,000 100 % 592,383 0.4 % 22.78 300 Fairgrounds Road LLC The Waters of Tipton SNF Tipton IN SNF 150 2034 30,970 100 % 1,346,325 0.9 % 43.47 1900 Alber Street LLC The Waters of Wabash SNF East Wabash IN SNF 84 2034 29,762 100 % 753,942 0.5 % 25.33 1720 Alber Street LLC The Waters of Wabash SNF West Wabash IN SNF 44 2034 12,956 100 % 394,922 0.3 % 30.48 300 North Washington Street LLC The Waters of Wakarusa SNF Wakarusa IN SNF 133 2034 48,000 100 % 1,193,741 0.8 % 24.87 8400 Clearvista Place LLC The Waters of Castleton ALF, LLC Indianapolis IN ALF 54 2034 43,900 100 % 484,677 0.3 % 11.04 787 North Detroit Street LLC The Waters of LaGrange ALF, LLC Lagrange IN ALF 17 2034 20,756 100 % 152,583 0.1 % 7.35 612 East 11th Street LLC The Waters of Rushville ALF, LLC Rushville IN ALF 29 2034 11,048 100 % 260,289 0.2 % 23.56 505 West Wolfe Street LLC The Waters of Sullivan ALF, LLC Sullivan IN ALF 32 2034 10,400 100 % 287,216 0.2 % 27.62 300 North Washington Street LLC The Waters of Wakarusa ALF, LLC Wakarusa IN ALF 61 2034 48,630 100 % 547,505 0.4 % 11.26 Master Lease Texas 1 1621 Coit Road Realty, LLC Landmark of Plano Nursing and Rehab Plano TX SNF 160 2033 74,718 100 % 723,520 0.5 % 9.68 5601 Plum Creek Drive Realty, LLC Landmark of Amarillo Nursing and Rehab Amarillo TX SNF 99 2033 90,046 100 % 447,678 0.3 % 4.97 2301 North Oregon Realty, LLC Grace Point Wellness Center El Paso TX SNF 182 2033 19,895 100 % 823,004 0.6 % 41.37 Master Lease Tide Group 2001 Avenue E, LLC Community Care Center of Hondo Hondo TX SNF 75 2035 18,572 100 % 719,642 0.5 % 38.75 1213 Water Street, LLC Waterside Nursing and Rehabilitation Kerrville TX SNF 179 2035 37,012 100 % 1,717,544 1.2 % 46.41 2808 Stoney Brook Drive, LLC Oasis at Galleria Houston TX SNF 112 2035 29,550 100 % 1,074,665 0.8 % 36.37 202 East Mill Street, LLC Big Spring Care Center for Rehab and Healthcare Humansville MO SNF 60 2035 20,111 100 % 575,713 0.4 % 28.63 631 West Main Street, LLC Buffalo Prairie Center for Rehab and Healthcare Buffalo MO SNF 60 2035 21,587 100 % 575,713 0.4 % 26.67 18540 State Highway 16, LLC Country Aire Retirement Center Lewistown MO SNF 60 2035 24,222 100 % 575,713 0.4 % 23.77 1 Georgian Gardens Drive, LLC Georgian Gardens Center for Rehab and Healthcare Potosi MO SNF 120 2035 38,973 100 % 1,151,426 0.8 % 29.54 2001 Jefferson Parkway, LLC Golden Years Center for Rehab and Healthcare Harrisonville MO SNF 132 2035 41,407 100 % 1,266,569 0.9 % 30.59 800 South White Oak, LLC Marshfield Care Center for Rehab and Healthcare Marshfield MO SNF 74 2035 23,905 100 % 710,046 0.5 % 29.70 15 Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF 501 S Monroe St, LLC Oregon Care Center Oregon MO SNF 60 2035 19,966 100 % 575,713 0.4 % 28.83 1531 Nebraska St, LLC Tiffany Heights Mound City MO SNF 60 2035 19,947 100 % 575,713 0.4 % 28.86 Master Lease Missouri 11515 Troost Avenue LLC Bridgewood Health Care Center Kansas City MO SNF 166 2040 75,045 100 % 1,453,833 1.0 % 19.37 902 Manor Drive LLC Chariton Park Healthcare Center Salisbury MO SNF 120 2040 33,675 100 % 1,050,963 0.7 % 31.21 11400 Mehl Avenue LLC Crestwood Health Care Center Florissant MO SNF 150 2040 39,346 100 % 1,313,704 0.9 % 33.39 1622 East 28th Street LLC Eastview Manor Care Center Trenton MO SNF 90 2040 24,667 100 % 788,222 0.6 % 31.95 2800 Hwy TT LLC Four Seasons Living Center Sedalia MO SNF 239 2040 112,191 100 % 2,093,169 1.5 % 18.66 52435 Infirmary Road LLC Milan Healthcare Center Milan MO SNF 100 2040 27,425 100 % 875,803 0.6 % 31.93 2041 Silva Lane LLC North Village Park Moberly MO SNF 183 2040 22,500 100 % 1,602,719 1.1 % 71.23 649 South Walnut LLC St.
Key factors that we consider in the underwriting process include the following: ● the current, historical and projected cash flow and operating margins of each tenant and at each facility; ● the ratio of our tenants’ operating earnings both to facility rent and to facility rent plus other fixed costs, including debt costs; ● the quality and experience of the tenant and its management team; ● construction quality, condition, design and projected capital needs of the facility and property condition assessments; ● competitive landscape; ● drivers of healthcare-related needs; ● the location of the facility; ● local economic and demographic factors and the competitive landscape of the market; ● licensure and accreditation; ● the effect of evolving healthcare legislation and other existing and future regulations and compliance with such regulations on our tenants’ profitability and liquidity; and ● the payor mix of private, Medicare and Medicaid patients at the facility. 20 We also require tenants to furnish property and operator-level financials, among other data, on a monthly basis; we evaluate individual and portfolio property performance, liquidity metrics, lease and debt coverage, occupancy, planned capital expenditures, and other measures; and we conduct in- person visits to each facility in the portfolio at least two times per year.
Key factors that we consider in the underwriting process include the following: ● the current, historical and projected cash flow and operating margins of each tenant and at each facility; ● the ratio of our tenants’ operating earnings both to facility rent and to facility rent plus other fixed costs, including debt costs; ● the quality and experience of the tenant and its management team; ● construction quality, condition, design and projected capital needs of the facility and property condition assessments; ● competitive landscape; ● drivers of healthcare-related needs; ● the location of the facility; ● local economic and demographic factors and the competitive landscape of the market; ● licensure and accreditation; ● the effect of evolving healthcare legislation and other existing and future regulations and compliance with such regulations on our tenants’ profitability and liquidity; and ● the payor mix of private, Medicare and Medicaid patients at the facility. 23 We also require tenants to furnish property and operator-level financials, among other data, on a monthly basis; we evaluate individual and portfolio property performance, liquidity metrics, lease and debt coverage, occupancy, planned capital expenditures, and other measures; and we conduct in- person visits to each facility in the portfolio at least two times per year.
As we continue to grow and expand our portfolio, we intend to develop new relationships with unrelated party tenants and operators in order to diversify our tenant base and reduce our dependence on related party and operators. 14 The following table contains information regarding tenant/operators that are related parties of the Company as March 13, 2025: Manager/Tenant/Operators that are Related Parties Lessor/Company Subsidiary Manager/Tenant/Operator Beneficial Owner Percentage in Tenant/Operator by Related Party Moishe Gubin/Gubin Enterprises LP Michael Blisko/Blisko Enterprises LP Master Lease Indiana 1 1020 West Vine Street Realty, LLC The Waters of Princeton II LLC 49.49 % 50.1 % 12803 Lenover Street Realty LLC The Waters of Dillsboro – Ross Manor II LLC 49.49 % 50.51 % 1350 North Todd Drive Realty, LLC The Waters of Scottsburg II LLC 49.49 % 50.1 % 1600 East Liberty Street Realty LLC The Waters of Covington II, LLC 49.49 % 50.51 % 1601 Hospital Drive Realty LLC The Waters of Greencastle II LLC 49.49 % 50.51 % 1712 Leland Drive Realty, LLC The Waters of Huntingburg II LLC 49.49 % 50.1 % 2055 Heritage Drive Realty LLC The Waters of Martinsville II LLC 49.49 % 50.51 % 3895 South Keystone Avenue Realty LLC The Waters of Indianapolis II LLC 49.49 % 50.51 % 405 Rio Vista Lane Realty LLC The Waters of Rising Sun II LLC 49.49 % 50.51 % 950 Cross Avenue Realty LLC The Waters of Clifty Falls II LLC 49.49 % 50.51 % 958 East Highway 46 Realty LLC The Water of Batesville II LLC 49.24 % 50.51 % 2400 Chateau Drive Realty, LLC The Waters of Muncie II LLC 49.49 % 50.51 % The Big H2O, LLC The Waters of New Castle II LLC 49.49 % 50.51 % 1316 North Tibbs Avenue Realty LLC Westpark A Waters Community, LLC 50.00 % 50.00 % 1002 Sister Barbara Way, LLC The Waters of Georgetown LLC 49.49 % 50.51 % 2640 Cold Spring Road Realty, LLC Alpha, A Waters Community, LLC 49.49 % 50.51 % Master Lease Tennessee 1 115 Woodlawn Drive, LLC Lakebridge, a Waters Community, LLC 50.00 % 50.00 % 146 Buck Creek Road, LLC The Waters of Roan Highlands, LLC 50.00 % 50.00 % 704 5 TH Avenue East, LLC The Waters of Springfield, LLC 50.00 % 50.00 % 2501 River Road, LLC The Waters of Cheatham, LLC 50.00 % 50.00 % 202 Enon Springs Road East, LLC The Waters of Smyrna, LLC 50.00 % 50.00 % 140 Technology Lane, LLC The Waters of Johnson City, LLC 50.00 % 50.00 % 835 Union Street, LLC The Waters of Shelbyville, LLC 50.00 % 50.00 % 1340 North Grundy Quarles Highway, LLC Waters of Gainesboro, LLC 50.00 % 50.00 % 100 Netherland Lane, LLC Waters of Kingsport, LLC 50.00 % 50.00 % 2648 Sevierville Road, LLC Waters of Maryville, LLC 50.00 % 50.00 % Master Lease Tennessee 2 505 North Roan Street, LLC Agape Rehabilitation & Nursing Center, A Water’s Community, LLC 50.00 % 50.00 % 14510 Highway 79, LLC Waters of McKenzie, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % 6500 Kirby Gate Boulevard, LLC Waters of Memphis, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % 978 Highway 11 South, LLC Waters of Sweetwater, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % 2830 Highway 394, LLC Waters of Bristol, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % Master Lease Indiana 2 8400 Clearvista Place LLC The Waters of Castleton SNF, LLC 50.00 % 50.00 % 524 Anderson Road LLC The Waters of Chesterfield SNF, LLC 50.00 % 50.00 % 640 West Ellsworth Street LLC The Waters of Columbia City SNF, LLC 50.00 % 50.00 % 11563 West 300 South LLC The Waters of Dunkirk SNF, LLC 50.00 % 50.00 % 5544 East State Boulevard LLC The Waters of Fort Wayne SNF, LLC 50.00 % 50.00 % 548 South 100 West LLC The Waters of Hartford City SNF, LLC 50.00 % 50.00 % 2901 West 37th Avenue LLC The Waters of Hobart SNF, LLC 50.00 % 50.00 % 1500 Grant Street LLC The Waters of Huntington SNF, LLC 50.00 % 50.00 % 787 North Detroit Street LLC The Waters of LaGrange SNF, LLC 50.00 % 50.00 % 981 Beechwood Avenue LLC The Waters of Middletown SNF, LLC 50.00 % 50.00 % 317 Blair Pike LLC The Waters of Peru SNF, LLC 50.00 % 50.00 % 815 West Washington Street LLC The Waters of Rockport SNF 50.00 % 50.00 % 612 East 11th Street LLC The Waters of Rushville SNF 50.00 % 50.00 % 505 West Wolfe Street LLC The Waters of Sullivan SNF 50.00 % 50.00 % 500 East Pickwick Drive LLC The Waters of Syracuse SNF 50.00 % 50.00 % 300 Fairgrounds Road LLC The Waters of Tipton SNF 50.00 % 50.00 % 1900 Alber Street LLC The Waters of Wabash SNF East 50.00 % 50.00 % 1720 Alber Street LLC The Waters of Wabash SNF West 50.00 % 50.00 % 300 North Washington Street LLC The Waters of Wakarusa SNF 50.00 % 50.00 % 8400 Clearvista Place LLC The Waters of Castleton ALF, LLC 50.00 % 50.00 % 787 North Detroit Street LLC The Waters of LaGrange ALF, LLC 50.00 % 50.00 % 612 East 11th Street LLC The Waters of Rushville ALF, LLC 50.00 % 50.00 % 505 West Wolfe Street LLC The Waters of Sullivan ALF, LLC 50.00 % 50.00 % 300 North Washington Street LLC The Waters of Wakarusa ALF, LLC 50.00 % 50.00 % Individual Leases Ambassador Nursing Realty, LLC Ambassador Nursing and Rehabilitation Center II, LLC 40.00 % 40.00 % Momence Meadows Realty, LLC Momence Meadows Nursing and Rehabilitation Center, LLC 50.00 % 50.00 % Lincoln Park Holdings, LLC Lakeview Rehabilitation and Nursing Center, LLC 40.00 % 40.00 % Continental Nursing Realty, LLC Continental Nursing and Rehabilitation Center, LLC 40.00 % 40.00 % Westshire Nursing Realty, LLC City View Multicare Center LLC 50.00 % 50.00 % Belhaven Realty, LLC Belhaven Nursing and Rehabilitation Center, LLC 50.00 % 50.00 % West Suburban Nursing Realty, LLC West Suburban Nursing and Rehabilitation Center, LLC 40.00 % 40.00 % Niles Nursing Realty LLC Niles Nursing & Rehabilitation Center, LLC 50.00 % 50.00 % Midway Neurological and Rehabilitation Realty, LLC Midway Neurological and Rehabilitation Center, LLC 50.00 % 50.00 % 516 West Frech Street, LLC Parker Rehab & Nursing Center, LLC 50.00 % 50.00 % 1585 Perry Worth Road LLC The Waters of Lebanon LLC 50.00 % 50.00 % 15 We monitor the creditworthiness of our tenants by evaluating the ability of the tenants to meet their lease obligations to us based on the tenants’ financial performance, including the evaluation of any guarantees of tenant lease obligations.
As we continue to grow and expand our portfolio, we intend to develop new relationships with unrelated party tenants and operators in order to diversify our tenant base and reduce our dependence on related party and operators. 17 The following table contains information regarding tenant/operators that are related parties of the Company as December 31, 2025: Manager/Tenant/Operators that are Related Parties Lessor/Company Subsidiary Manager/Tenant/Operator Beneficial Owner Percentage in Tenant/Operator by Related Party Moishe Gubin/Gubin Enterprises LP Michael Blisko/Blisko Enterprises LP Master Lease Indiana 1 1020 West Vine Street Realty, LLC The Waters of Princeton II LLC 49.49 % 50.51 % 12803 Lenover Street Realty LLC The Waters of Dillsboro – Ross Manor II LLC 49.49 % 50.51 % 1350 North Todd Drive Realty, LLC The Waters of Scottsburg II LLC 49.49 % 50.1 % 1600 East Liberty Street Realty LLC The Waters of Covington II, LLC 49.49 % 50.51 % 1601 Hospital Drive Realty LLC The Waters of Greencastle II LLC 49.49 % 50.51 % 1712 Leland Drive Realty, LLC The Waters of Huntingburg II LLC 49.49 % 50.51 % 2055 Heritage Drive Realty LLC The Waters of Martinsville II LLC 49.49 % 50.51 % 3895 South Keystone Avenue Realty LLC The Waters of Indianapolis II LLC 49.49 % 50.51 % 405 Rio Vista Lane Realty LLC The Waters of Rising Sun II LLC 49.49 % 50.51 % 950 Cross Avenue Realty LLC The Waters of Clifty Falls II LLC 49.49 % 50.51 % 958 East Highway 46 Realty LLC The Water of Batesville II LLC 49.24 % 50.51 % 2400 Chateau Drive Realty, LLC The Waters of Muncie II LLC 49.49 % 50.51 % The Big H2O, LLC The Waters of New Castle II LLC 49.49 % 50.51 % 1316 North Tibbs Avenue Realty LLC Westpark A Waters Community, LLC 50.00 % 50.00 % 1002 Sister Barbara Way, LLC The Waters of Georgetown LLC 49.49 % 50.51 % 2640 Cold Spring Road Realty, LLC Alpha, A Waters Community, LLC 49.49 % 50.51 % Master Lease Tennessee 1 115 Woodlawn Drive, LLC Lakebridge, a Waters Community, LLC 50.00 % 50.00 % 146 Buck Creek Road, LLC The Waters of Roan Highlands, LLC 50.00 % 50.00 % 704 5 TH Avenue East, LLC The Waters of Springfield, LLC 50.00 % 50.00 % 2501 River Road, LLC The Waters of Cheatham, LLC 50.00 % 50.00 % 202 Enon Springs Road East, LLC The Waters of Smyrna, LLC 50.00 % 50.00 % 140 Technology Lane, LLC The Waters of Johnson City, LLC 50.00 % 50.00 % 835 Union Street, LLC The Waters of Shelbyville, LLC 50.00 % 50.00 % 1340 North Grundy Quarles Highway, LLC Waters of Gainesboro, LLC 50.00 % 50.00 % 100 Netherland Lane, LLC Waters of Kingsport, LLC 50.00 % 50.00 % 2648 Sevierville Road, LLC Waters of Maryville, LLC 50.00 % 50.00 % Master Lease Tennessee 2 505 North Roan Street, LLC Agape Rehabilitation & Nursing Center, A Water’s Community, LLC 50.00 % 50.00 % 14510 Highway 79, LLC Waters of McKenzie, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % 6500 Kirby Gate Boulevard, LLC Waters of Memphis, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % 978 Highway 11 South, LLC Waters of Sweetwater, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % 2830 Highway 394, LLC Waters of Bristol, A Rehabilitation & Nursing Center, LLC 50.00 % 50.00 % Master Lease Indiana 2 8400 Clearvista Place LLC The Waters of Castleton SNF, LLC 50.00 % 50.00 % 524 Anderson Road LLC The Waters of Chesterfield SNF, LLC 50.00 % 50.00 % 640 West Ellsworth Street LLC The Waters of Columbia City SNF, LLC 50.00 % 50.00 % 11563 West 300 South LLC The Waters of Dunkirk SNF, LLC 50.00 % 50.00 % 5544 East State Boulevard LLC The Waters of Fort Wayne SNF, LLC 50.00 % 50.00 % 548 South 100 West LLC The Waters of Hartford City SNF, LLC 50.00 % 50.00 % 2901 West 37th Avenue LLC The Waters of Hobart SNF, LLC 50.00 % 50.00 % 1500 Grant Street LLC The Waters of Huntington SNF, LLC 50.00 % 50.00 % 787 North Detroit Street LLC The Waters of LaGrange SNF, LLC 50.00 % 50.00 % 981 Beechwood Avenue LLC The Waters of Middletown SNF, LLC 50.00 % 50.00 % 317 Blair Pike LLC The Waters of Peru SNF, LLC 50.00 % 50.00 % 815 West Washington Street LLC The Waters of Rockport SNF 50.00 % 50.00 % 612 East 11th Street LLC The Waters of Rushville SNF 50.00 % 50.00 % 505 West Wolfe Street LLC The Waters of Sullivan SNF 50.00 % 50.00 % 500 East Pickwick Drive LLC The Waters of Syracuse SNF 50.00 % 50.00 % 300 Fairgrounds Road LLC The Waters of Tipton SNF 50.00 % 50.00 % 1900 Alber Street LLC The Waters of Wabash SNF East 50.00 % 50.00 % 1720 Alber Street LLC The Waters of Wabash SNF West 50.00 % 50.00 % 300 North Washington Street LLC The Waters of Wakarusa SNF 50.00 % 50.00 % 8400 Clearvista Place LLC The Waters of Castleton ALF, LLC 50.00 % 50.00 % 787 North Detroit Street LLC The Waters of LaGrange ALF, LLC 50.00 % 50.00 % 612 East 11th Street LLC The Waters of Rushville ALF, LLC 50.00 % 50.00 % 505 West Wolfe Street LLC The Waters of Sullivan ALF, LLC 50.00 % 50.00 % 300 North Washington Street LLC The Waters of Wakarusa ALF, LLC 50.00 % 50.00 % Individual Leases Ambassador Nursing Realty, LLC Ambassador Nursing and Rehabilitation Center II, LLC 40.00 % 40.00 % Momence Meadows Realty, LLC Momence Meadows Nursing and Rehabilitation Center, LLC 50.00 % 50.00 % Lincoln Park Holdings, LLC Lakeview Rehabilitation and Nursing Center, LLC 40.00 % 40.00 % Continental Nursing Realty, LLC Continental Nursing and Rehabilitation Center, LLC 40.00 % 40.00 % Westshire Nursing Realty, LLC City View Multicare Center LLC 50.00 % 50.00 % Belhaven Realty, LLC Belhaven Nursing and Rehabilitation Center, LLC 50.00 % 50.00 % West Suburban Nursing Realty, LLC West Suburban Nursing and Rehabilitation Center, LLC 40.00 % 40.00 % Niles Nursing Realty LLC Niles Nursing & Rehabilitation Center, LLC 50.00 % 50.00 % Midway Neurological and Rehabilitation Realty, LLC Midway Neurological and Rehabilitation Center, LLC 50.00 % 50.00 % 516 West Frech Street, LLC Parker Rehab & Nursing Center, LLC 50.00 % 50.00 % 1585 Perry Worth Road LLC The Waters of Lebanon LLC 50.00 % 50.00 % 18 We monitor the creditworthiness of our tenants by evaluating the ability of the tenants to meet their lease obligations to us based on the tenants’ financial performance, including the evaluation of any guarantees of tenant lease obligations.
In the final rule issued in January, 2013, HHS modified the standard for determining whether a breach has occurred by creating a presumption that any non-permitted acquisition, access, use or disclosure of protected health information is a breach unless the covered entity or business associate can demonstrate that there is a low probability that the information has been compromised, based on a risk assessment. 27 Covered entities and business associates are subject to civil penalties for violations of HIPAA of up to $1.5 million per year for violations of the same requirement.
In the final rule issued in January, 2013, HHS modified the standard for determining whether a breach has occurred by creating a presumption that any non-permitted acquisition, access, use or disclosure of protected health information is a breach unless the covered entity or business associate can demonstrate that there is a low probability that the information has been compromised, based on a risk assessment. 30 Covered entities and business associates are subject to civil penalties for violations of HIPAA of up to $1.5 million per year for violations of the same requirement.
If a defendant is found liable under the False Claims Act, the defendant may be required to pay three times the actual damages sustained by the government, additional civil penalties of up to $10,000 per false claim, plus reimbursement of the fees of counsel for the whistleblower. 26 Many states have enacted similar statutes preventing the presentation of a false claim to a state government, and we expect more to do so because the Social Security Act provides a financial incentive for states to enact statutes establishing state level liability.
If a defendant is found liable under the False Claims Act, the defendant may be required to pay three times the actual damages sustained by the government, additional civil penalties of up to $10,000 per false claim, plus reimbursement of the fees of counsel for the whistleblower. 29 Many states have enacted similar statutes preventing the presentation of a false claim to a state government, and we expect more to do so because the Social Security Act provides a financial incentive for states to enact statutes establishing state level liability.
In addition, the presence of such substances, or the failure to properly dispose of or remediate such substances, may adversely affect the owner’s ability to sell or rent such property or to borrow using such property as collateral which, in turn, could reduce our revenues. 29 Prior to closing any property acquisition or loan, we ordinarily obtain Phase I environmental assessments in order to attempt to identify potential environmental concerns at the facilities.
In addition, the presence of such substances, or the failure to properly dispose of or remediate such substances, may adversely affect the owner’s ability to sell or rent such property or to borrow using such property as collateral which, in turn, could reduce our revenues. 32 Prior to closing any property acquisition or loan, we ordinarily obtain Phase I environmental assessments in order to attempt to identify potential environmental concerns at the facilities.
Failure to refund amounts received pursuant to a prohibited referral may also constitute a false claim and result in additional penalties under the False Claims Act, which is discussed in greater detail below. 25 There are exceptions to the self-referral prohibition for many of the customary financial arrangements between physicians and providers, including employment contracts, leases and recruitment agreements.
Failure to refund amounts received pursuant to a prohibited referral may also constitute a false claim and result in additional penalties under the False Claims Act, which is discussed in greater detail below. 28 There are exceptions to the self-referral prohibition for many of the customary financial arrangements between physicians and providers, including employment contracts, leases and recruitment agreements.
As of December 31, 2024, 100% of the gross leasable area of our facilities was leased with an average remaining lease term of 7.2 years. Our leases generally have an initial term of 10 years with two five-year extensions, and annual rent escalators of 1% to 3% per year, which provides us with a steady and growing cash rental stream.
As of December 31, 2025, 100% of the gross leasable area of our facilities was leased with an average remaining lease term of 7.2 years. Our leases generally have an initial term of 10 years with two five-year extensions, and annual rent escalators of 1% to 3% per year, which provides us with a steady and growing cash rental stream.
Gubin worked as an operator of skilled nursing facilities and built a strong operational knowledge base that has been incorporated into the day-to-day management of our current portfolio. Additionally, Mr. Gubin has significant acquisition experience having completed over 140 healthcare-related facilities with an aggregate investment amount of over $1.5 billion since 2003. Mr.
Gubin worked as an operator of skilled nursing facilities and built a strong operational knowledge base that has been incorporated into the day-to-day management of our current portfolio. Additionally, Mr. Gubin has significant acquisition experience having completed over 140 healthcare-related facilities with an aggregate investment amount of over $1.6 billion since 2003. Mr.
In addition to enforcement by Federal and State agencies, in an effort to control health care costs, private payors such as employee welfare benefit plans administered by or for employers or unions have become increasing aggressive in bringing actions against providers alleging violations of antitrust laws. 28 Healthcare Industry Investigations .
In addition to enforcement by Federal and State agencies, in an effort to control health care costs, private payors such as employee welfare benefit plans administered by or for employers or unions have become increasing aggressive in bringing actions against providers alleging violations of antitrust laws. 31 Healthcare Industry Investigations .
Pursuant to the terms of our leases, our tenants are required to provide us with certain periodic financial statements and operating data. 19 Utilize Targeted Leverage in Our Investing Activities. We seek to utilize a targeted level of leverage that is appropriate in light of market conditions, future cash flows, the creditworthiness of tenants and future rental rates.
Pursuant to the terms of our leases, our tenants are required to provide us with certain periodic financial statements and operating data. 22 Utilize Targeted Leverage in Our Investing Activities. We seek to utilize a targeted level of leverage that is appropriate in light of market conditions, future cash flows, the creditworthiness of tenants and future rental rates.
This diversification limits our exposure for any single tenant that encounters financial or operational difficulties. Protected Markets . In nine of the eleven states in which we operate, we benefit from CON laws that require state approval for the construction and expansion of certain types of healthcare facilities.
This diversification limits our exposure for any single tenant that encounters financial or operational difficulties. Protected Markets . In nine of the ten states in which we operate, we benefit from CON laws that require state approval for the construction and expansion of certain types of healthcare facilities.
We believe that the diverse operational and financial background and expertise of our management team gives us the ability to successfully manage our portfolio and sustain our growth. 18 Our Business and Growth Strategies Our objective is to generate attractive returns for our stockholders over the long term through dividends and capital appreciation.
We believe that the diverse operational and financial background and expertise of our management team gives us the ability to successfully manage our portfolio and sustain our growth. 21 Our Business and Growth Strategies Our objective is to generate attractive returns for our stockholders over the long term through dividends and capital appreciation.
If we acquire underperforming properties, we would expect to lease them to tenants and operators that have significant turnaround experience and support from experienced consultants. 17 Experienced and Adept Operators. We have strong and long-standing relationships with operators and their principals who have significant experience in operating successful skilled nursing facilities.
If we acquire underperforming properties, we would expect to lease them to tenants and operators that have significant turnaround experience and support from experienced consultants. 20 Experienced and Adept Operators. We have strong and long-standing relationships with operators and their principals who have significant experience in operating successful skilled nursing facilities.
CMS annually establishes payment rates for the PPS for each applicable facility type and level of care provided. 23 Amounts received under Medicare and Medicaid programs are generally significantly less than established facility gross charges for the services provided and may not reflect the provider’s costs.
CMS annually establishes payment rates for the PPS for each applicable facility type and level of care provided. 26 Amounts received under Medicare and Medicaid programs are generally significantly less than established facility gross charges for the services provided and may not reflect the provider’s costs.
The operators at our properties primarily use one of nine principal consulting firms, including three firms that are part of Infinity Healthcare, a healthcare consulting business that is owned by the Moishe Gubin, who is our Chairman and Chief Executive Officer and Michael Blisko, who is one of our directors.
The operators at our properties primarily use one of 15 principal consulting firms, including three firms that are part of Infinity Healthcare, a healthcare consulting business that is owned by the Moishe Gubin, who is our Chairman and Chief Executive Officer and Michael Blisko, who is one of our directors.
We also face competition in leasing or subleasing available facilities to prospective tenants. 22 Regulation Healthcare Regulatory Matters The following discussion describes certain material healthcare laws and regulations that may affect our operations and those of our tenants/operators.
We also face competition in leasing or subleasing available facilities to prospective tenants. 25 Regulation Healthcare Regulatory Matters The following discussion describes certain material healthcare laws and regulations that may affect our operations and those of our tenants/operators.
Healthcare provider operating margins may continue to be under significant pressure due to the deterioration in pricing flexibility and payor mix, as well as increases in operating expenses that exceed increases in payments under the Medicare and Medicaid programs. 24 Anti-Kickback Statute .
Healthcare provider operating margins may continue to be under significant pressure due to the deterioration in pricing flexibility and payor mix, as well as increases in operating expenses that exceed increases in payments under the Medicare and Medicaid programs. 27 Anti-Kickback Statute .
The information found on, or otherwise accessible through, our website is not incorporated by reference into, nor does it form a part of, this report or any other document that we file with the SEC. 30
The information found on, or otherwise accessible through, our website is not incorporated by reference into, nor does it form a part of, this report or any other document that we file with the SEC. 33
Gubin also has significant experience accessing debt capital markets to fund growth, having raised over $350 million of publicly traded bonds that are listed on the Tel Aviv Stock Exchange.
Gubin also has significant experience accessing debt capital markets to fund growth, having raised over $500 million of publicly traded bonds that are listed on the Tel Aviv Stock Exchange.
In addition, our management team has extensive experience as operators of, and healthcare consultants to, skilled nursing facilities, having managed and operated over 90 skilled nursing facilities, including 67 of our current tenants.
In addition, our management team has extensive experience as operators of, and healthcare consultants to, skilled nursing facilities, having managed and operated over 90 skilled nursing facilities, including 66 of our current tenants.
These acquisitions are expected to generate initial annual cash revenues of approximately $17.7 million. 7 Our management team has extensive experience in acquiring, owning, financing, operating and leasing skilled nursing facilities and other types of healthcare properties.
These acquisitions are expected to generate initial annual cash revenues of approximately $12.1 million. 7 Our management team has extensive experience in acquiring, owning, financing, operating and leasing skilled nursing facilities and other types of healthcare properties.
Leverage Existing and Develop New Operator Relationships. relationships in the healthcare industry through which we have sourced our existing portfolio, and we intend to continue to expand our portfolio by leveraging these existing relationships. Sixty-seven of our properties are leased to related parties.
Leverage Existing and Develop New Operator Relationships. The Company has cultivated relationships in the healthcare industry through which we have sourced our existing portfolio, and we intend to continue to expand our portfolio by leveraging these existing relationships. Sixty-seven of our properties are leased to related parties.
We generate substantially all of our revenues by leasing our properties to tenants under long-term leases primarily on a triple-net basis, under which the tenant pays the cost of real estate taxes, insurance and other operating costs of the facility and capital expenditures. Our properties are currently leased to 130 tenants under 31 lease agreements.
We generate substantially all of our revenues by leasing our properties to tenants under long-term leases primarily on a triple-net basis, under which the tenant pays the cost of real estate taxes, insurance and other operating costs of the facility and capital expenditures. Our properties are currently leased to 143 tenants under 32 lease agreements.
Changes to the policy do not require stockholder approval. Our management does not have a fixed policy relating to the sale of properties. Accordingly, each potential sale opportunity will be examined on its merits in view of the business opportunity involved. Our Leases As of March 13, 2025, all of our healthcare properties were subject to lease agreements.
Changes to the policy do not require stockholder approval. Our management does not have a fixed policy relating to the sale of properties. Accordingly, each potential sale opportunity will be examined on its merits in view of the business opportunity involved. Our Leases As of December 31, 2025, all of our healthcare properties were subject to lease agreements.
We believe that our geographic diversification limits the potential impact of any regulatory, reimbursement, competitive dynamic or other changes in any single market on the overall performance of our portfolio. We lease our properties to 130 tenants, with no single tenant accounting for more than 4.2% of our annualized base rent.
We believe that our geographic diversification limits the potential impact of any regulatory, reimbursement, competitive dynamic or other changes in any single market on the overall performance of our portfolio. We lease our properties to 143 tenants, with no single tenant accounting for more than 4.0% of our annualized base rent.
While these tenants and operators have been successful, we expect to seek opportunities to diversify our tenant/operator mix through future acquisitions that will be leased to new operators. 10 The following table contains information regarding our healthcare facility portfolio by tenant, as of March 13, 2025.
While these tenants and operators have been successful, we expect to seek opportunities to diversify our tenant/operator mix through future acquisitions that will be leased to new operators. 10 The following table contains information regarding our healthcare facility portfolio by tenant, as of December 31, 2025.
Lessor/Company Subsidiary Manager/ Tenant/ Operator City State Property type Number of licensed beds Tenant Lease Expiration Year (1) Rentable square feet Percent leased Annualized Lease Income (in $) % of total Annualized Lease Income Annualized lease income per SQF (in $) Master Lease Indiana 1 1020 West Vine St, LLC The Waters of Princeton II, LLC Princeton IN SNF 95 2034 32,571 100 % 1,224,215 0.9 % 37.59 12803 Lenover Street Realty, LLC The Waters of Dillsboro - Ross II, LLC Dillsboro IN SNF 123 2034 67,851 100 % 1,585,037 1.2 % 23.36 1350 North Todd St, LLC The Waters of Scottsburg II, LLC Scottsburg IN SNF 99 2034 28,050 100 % 1,275,761 0.9 % 45.48 1600 East Liberty Street Realty, LLC The Waters of Covington II, LLC Covington IN SNF 119 2034 40,821 100 % 1,533,491 1.1 % 37.57 1601 Hospital Dr Realty, LLC The Waters of Greencastle II, LLC Greencastle IN SNF 100 2034 31,245 100 % 1,288,648 1.0 % 41.24 1712 Leland Drive Realty, LLC The Waters of Huntingburg II, LLC Huntingburg IN SNF 95 2034 45,156 100 % 1,224,215 0.9 % 27.11 2055 Heritage Dr Realty, LLC The Waters of Martinsville II, LLC Martinsville IN SNF 103 2034 30,060 100 % 1,327,307 1.0 % 44.16 3895 Keystone Ave Realty, LLC The Waters of Indianapolis II, LLC Indianapolis IN SNF 81 2034 25,469 100 % 1,043,805 0.8 % 40.98 405 Rio Vista Lane Realty, LLC The Waters of Rising Sun II, LLC Rising Sun IN SNF 58 2034 16,140 100 % 747,416 0.6 % 46.31 950 Cross Ave Realty, LLC The Waters of Clifty Falls II, LLC Madison IN SNF 138 2034 39,438 100 % 1,778,334 1.3 % 45.09 958 East Highway 46 Realty, LLC The Water of Batesville II, LLC Batesville IN SNF 86 2034 59,582 100 % 1,108,237 0.8 % 18.6 2400 Chateau Drive Realty LLC The Waters of Muncie II, LLC Muncie IN SNF 72 2034 22,350 100 % 927,826 0.7 % 41.51 Big H2O The Waters of Newcastle II, LLC (2) New Castle IN SNF 66 2034 24,860 100 % 850,507 0.6 % 34.21 1316 North Tibbs Avenue Realty LLC West Park a water community Indianapolis IN SNF 89 2034 26,572 100 % 1,146,896 0.9 % 43.16 0.7 % 1002 SISTER BARBARA WAY, LLC Waters of Georgetown Georgetown IN SNF 78 2034 50,948 100 % 1,005,145 0.8 % 19.73 2640 Cold Spring Road Realty, LLC Alpha A Waters Community, LLC Indianapolis IN SNF 86 2034 37,054 100 % 1,108,237 0.9 % 29.91 Master Lease Illinois 1 253 Bradington Drive, LLC Bria of Columbia Columbia IL SNF 119 2032 43,189 100 % 410,821 0.3 % 9.51 3523 Wickenhauser, LLC Bria of Alton Alton IL SNF 181 2032 44,840 100 % 624,862 0.5 % 13.94 727 North 17th St, LLC Bria of Belleville Belleville IL SNF 180 2032 50,650 100 % 621,410 0.5 % 12.27 Master Lease Illinois 2 1623 West Delmar Ave, LLC Bria of Godfrey Godfrey IL SNF 68 2032 15,740 100 % 234,755 0.2 % 14.91 393 Edwardsville Road LLC Bria of Wood River Wood River IL SNF 106 2032 29,491 100 % 365,941 0.3 % 12.41 Master Lease Landmark 8200 National Ave Realty, LLC Landmark of Midwest City Nursing and Rehab Midwest City OK SNF 106 2032 39,789 100 % 550,631 0.4 % 13.84 8200 National Ave Realty, LLC Landmark of Midwest City Hospital Midwest City OK LTACH 31 2032 49,319 100 % 161,034 0.1 % 3.27 911 South 3rd St Realty LLC Chalet Of Niles Niles MI SNF 100 2032 31,895 100 % 519,463 0.4 % 16.29 Oak Lawn Nursing Realty, LLC Oak Lawn Respiratory and Rehab center, LLC Oak Lawn IL SNF 143 2028 37,854 100 % 742,833 0.6 % 19.62 Forest View Nursing Realty, LLC Forest View Rehab and Nursing center, LLC Itasca IL SNF 144 2024 34,152 100 % 748,027 0.6 % 21.90 Parkshore Estates Nursing Realty, LLC Parkshore Estates Nursing & Rehab Center, LLC Chicago IL SNF 318 2024 94,018 100 % 1,651,893 1.2 % 17.57 Master Lease Kentucky 1015 Magazine Street, LLC Landmark of River City Rehabilitation and Nursing Center Louisville KY SNF 92 2032 36,050 100 % 2,060,536 1.5 % 57.16 900 Gagel Avenue, LLC Landmark of Iroquois Park Rehabilitation and Nursing Center Louisville KY SNF 120 2032 36,374 100 % 2,687,656 2.0 % 73.89 308 West Maple Avenue, LLC Landmark of Lancaster Rehabilitation and Nursing Center Lancaster KY SNF 96 2032 42,438 100 % 2,150,125 1.6 % 50.67 1155 Eastern Parkway, LLC Landmark of Louisville Rehabilitation and Nursing Center Louisville KY SNF 252 2032 106,250 100 % 5,644,077 4.2 % 53.12 203 Bruce Court, LLC Landmark of Danville Rehabilitation and Nursing Center Danville KY SNF 90 2032 26,000 100 % 2,015,742 1.5 % 77.53 203 Bruce Court, LLC Goldenrod Village Assisted Living Center Danville KY ALF 16 2032 19,500 100 % 358,354 0.3 % 18.38 203 Bruce Court, LLC Hillside Suites Independent Living Center Danville KY Independent Living 0 2032 1,000 - 0.0 % 120 Life Care Way, LLC Landmark of Bardstown Rehabilitation and Nursing Center Bardstown KY SNF 100 2032 36,295 100 % 2,239,713 1.7 % 61.71 1033 North Highway 11, LLC Landmark of Laurel Creek Rehabilitation and Nursing Center Manchester KY SNF 106 2032 32,793 100 % 2,374,096 1.8 % 72.40 945 West Russell Street, LLC Landmark of Elkhorn City Rehabilitation and Nursing Center Elkhorn City KY SNF 106 2032 31,637 100 % 2,374,096 1.8 % 75.04 420 Jett Drive, LLC Landmark of Breathitt County Rehabilitation and Nursing Center, LLC Jackson KY SNF 120 2032 32,581 100 % 2,687,656 2.0 % 82.49 1253 Lake Barkley Drive, LLC Landmark of Kuttawa, A Rehabilitation & Nursing Center Kuttawa KY SNF 65 2032 37,892 100 % 1,455,813 1.1 % 38.42 11 Lessor/Company Subsidiary Manager/ Tenant/ Operator City State Property type Number of licensed beds Tenant Lease Expiration Year (1) Rentable square feet Percent leased Annualized Lease Income (in $) % of total Annualized Lease Income Annualized lease income per SQF (in $) Master Lease Ohio - 3090 Five Points Hartford Realty, LLC Continent Healthcare Co - Hartford Fowler OH SNF 54 2025 15,504 100 % 196,012 0.1 % 12.64 3121 Glanzman Rd Realty, LLC Continent Healthcare Co - Toledo Toledo OH SNF 84 2025 24,087 100 % 304,908 0.2 % 12.66 620 West Strub Rd Realty, LLC Continent Healthcare Co - Sandusky Sandusky OH SNF 50 2025 18,984 100 % 181,493 0.1 % 9.56 4250 Sodom Hutchings Road Realty, LLC Continent Healthcare Co - Cortland Cortland OH SNF 50 2025 14,736 100 % 181,493 0.1 % 12.32 Master Lease Tennessee 1 115 Woodlawn Drive, LLC Lakebridge a Waters Community, LLC Johnson City TN SNF 109 2031 37,734 100 % 1,263,854 0.9 % 33.49 146 Buck Creek Road, LLC Waters of Roan Highlands, LLC Roan Mountain TN SNF 80 2031 30,139 100 % 927,600 0.7 % 30.78 704 5th Avenue East, LLC Waters of Springfield, LLC Springfield TN SNF 66 2031 19,900 100 % 765,270 0.6 % 38.46 2501 River Road, LLC Waters of Cheatham, LLC Ashland City TN SNF 80 2031 37,953 100 % 927,600 0.7 % 24.44 202 Enon Springs East, LLC Waters of Smyrna, LLC Smyrna TN SNF 91 2031 34,070 100 % 1,055,145 0.8 % 30.97 140 Technology Lane, LLC Waters of Johnson City, LLC Johnson City TN SNF 84 2031 34,814 100 % 973,980 0.7 % 27.98 835 Union Street, LLC Waters of Shelbyville, LLC Shelbyville TN SNF 96 2031 44,327 100 % 1,113,120 0.8 % 25.11 1340 North Grundy Quarles Highway, LLC Waters of Gainesboro, LLC Gainesboro TN SNF 83 2031 254,585 100 % 962,385 0.7 % 3.78 1340 North Grundy Quarles Highway, LLC Waters of Gainesboro, LLC Gainesboro TN ALF 25 2031 80,315 100 % 289,875 0.2 % 3.61 100 Netherland Lane, LLC Waters of Kingsport Kingsport TN SNF 67 2031 28,140 100 % 776,865 0.6 % 27.61 2648 Sevierville Road, LLC Waters of Maryville Maryville TN SNF 181 2031 49,810 100 % 302,646 0.2 % 6.08 Master Lease Tennessee 2 505 North Roan Street, LLC Agape Rehabilitation & Nursing Center, A Water’s Community Johnson City TN SNF 84 2031 27,100 100 % 1,628,910 1.2 % 60.11 14510 Highway 79, LLC Waters of McKenzie, A Rehabilitation & Nursing Center McKenzie TN SNF 66 2031 22,454 100 % 1,279,858 0.9 % 57.00 6500 Kirby Gate Boulevard, LLC Waters of Memphis, A Rehabilitation & Nursing Center Memphis TN SNF 90 2031 51,565 100 % 1,745,261 1.3 % 33.85 978 Highway 11 South, LLC Waters of Sweetwater, A Rehabilitation & Nursing Center Sweetwater TN SNF 90 2031 30,312 100 % 1,745,261 1.3 % 57.58 2830 Highway 394, LLC Waters of Bristol, A Rehabilitation & Nursing Center Bristol TN SNF 120 2031 53,913 100 % 2,327,014 1.7 % 43.16 Master Lease Arkansas 1 5301 Wheeler Avenue, LLC The Blossoms at Fort Smith Fort Smith AR SNF 117 2028 41,490 100 % 821,950 0.6 % 19.81 414 Massey Avenue, LLC The Blossoms at Mountain View Assisted Living Mountain View AR ALF 32 2028 12,548 100 % 224,807 0.2 % 17.92 706 Oak Grove Street, LLC The Blossoms at Mountain View Mountain View AR SNF 97 2028 31,586 100 % 681,445 0.5 % 21.57 8701 Riley Drive, LLC The Blossoms at Woodland Hills Little Rock AR SNF 140 2028 61,543 100 % 983,530 0.7 % 15.98 1516 Cumberland Street, LLC The Blossoms at Cumberland Little Rock AR SNF 120 2028 82,328 100 % 843,025 0.6 % 10.24 5720 West Markham Street, LLC The Blossoms at Midtown Little Rock AR SNF 154 2028 56,176 100 % 1,081,883 0.8 % 19.26 2501 John Ashley Drive, LLC The Blossoms at North Little Rock Little Rock AR SNF 140 2028 65,149 100 % 983,530 0.7 % 15.10 1513 South Dixieland Road, LLC The Blossoms at Rogers Rogers AR SNF 110 2028 32,962 100 % 772,773 0.6 % 23.44 826 North Street, LLC The Blossoms at Stamps Stamps AR SNF 94 2028 30,924 100 % 660,370 0.5 % 21.35 12 Lessor/Company Subsidiary Manager/ Tenant/ Operator City State Property type Number of licensed beds Tenant Lease Expiration Year (1) Rentable square feet Percent leased Annualized Lease Income (in $) % of total Annualized Lease Income Annualized lease income per SQF (in $) Master Lease Arkasnas 2 326 Lindley Lane, LLC The Blossoms at Newport Newport AR SNF 120 2029 49,675 100 % 850,639 0.6 % 17.12 2821 West Dixon Road, LLC The Blossoms at West Dixon Little Rock AR SNF 140 2029 42,825 100 % 992,412 0.7 % 23.17 2821 West Dixon Road, LLC The Blossoms at West Dixon Assisted Living Little Rock AR ALF 32 2029 7,557 100 % 226,837 0.2 % 30.02 552 Golf Links Road, LLC The Blossoms at Hot Springs Hot Springs AR SNF 152 2029 30,372 100 % 1,077,476 0.8 % 35.48 Master Lease Indiana 2 8400 Clearvista Place LLC The Waters of Castleton SNF, LLC Indianapolis IN SNF 114 2029 41,400 100 % 1,023,207 0.8 % 24.72 524 Anderson Road LLC The Waters of Chesterfield SNF, LLC Chesterfield IN SNF 60 2029 21,900 100 % 538,530 0.4 % 24.59 640 West Ellsworth Street LLC The Waters of Columbia City SNF, LLC Columbia City IN SNF 84 2029 30,462 100 % 753,942 0.6 % 24.75 11563 West 300 South LLC The Waters of Dunkirk SNF, LLC Dunkirk IN SNF 46 2029 19,800 100 % 412,873 0.3 % 20.85 5544 East State Boulevard LLC The Waters of Fort Wayne SNF, LLC Ft.
Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF Master Lease Indiana 1 1020 West Vine St, LLC The Waters of Princeton II, LLC Princeton IN SNF 95 2034 32,571 100 % 1,224,215 0.9 % 37.59 12803 Lenover Street Realty, LLC The Waters of Dillsboro - Ross II, LLC Dillsboro IN SNF 123 2034 67,851 100 % 1,585,037 1.1 % 23.36 1350 North Todd St, LLC The Waters of Scottsburg II, LLC Scottsburg IN SNF 99 2034 28,050 100 % 1,275,761 0.9 % 45.48 1600 East Liberty Street Realty, LLC The Waters of Covington II, LLC Covington IN SNF 119 2034 40,821 100 % 1,533,491 1.1 % 37.57 1601 Hospital Dr Realty, LLC The Waters of Greencastle II, LLC Greencastle IN SNF 100 2034 31,245 100 % 1,288,648 0.9 % 41.24 1712 Leland Drive Realty, LLC The Waters of Huntingburg II, LLC Huntingburg IN SNF 95 2034 45,156 100 % 1,224,215 0.9 % 27.11 2055 Heritage Dr Realty, LLC The Waters of Martinsville II, LLC Martinsville IN SNF 103 2034 30,060 100 % 1,327,307 0.9 % 44.16 3895 Keystone Ave Realty, LLC The Waters of Indianapolis II, LLC Indianapolis IN SNF 81 2034 25,469 100 % 1,043,805 0.7 % 40.98 405 Rio Vista Lane Realty, LLC The Waters of Rising Sun II, LLC Rising Sun IN SNF 58 2034 16,140 100 % 747,416 0.5 % 46.31 950 Cross Ave Realty, LLC The Waters of Clifty Falls II, LLC Madison IN SNF 138 2034 39,438 100 % 1,778,334 1.2 % 45.09 958 East Highway 46 Realty, LLC The Water of Batesville II, LLC Batesville IN SNF 86 2034 59,582 100 % 1,108,237 0.8 % 18.60 2400 Chateau Drive Realty LLC The Waters of Muncie II, LLC Muncie IN SNF 72 2034 22,350 100 % 927,826 0.7 % 41.51 Big H2O The Waters of Newcastle II, LLC (2) New Castle IN SNF 66 2034 24,860 100 % 850,507 0.6 % 34.21 1316 North Tibbs Avenue Realty LLC West Park a water community Indianapolis IN SNF 89 2034 26,572 100 % 1,146,896 0.8 % 43.16 1002 SISTER BARBARA WAY, LLC Waters of Georgetown Georgetown IN SNF 78 2034 50,948 100 % 1,005,145 0.7 % 19.73 2640 Cold Spring Road Realty, LLC Alpha A Waters Community, LLC Indianapolis IN SNF 86 2034 37,054 100 % 1,108,237 0.8 % 29.91 Master Lease Illinois 1 253 Bradington Drive, LLC Bria of Columbia Columbia IL SNF 119 2032 43,189 100 % 410,821 0.3 % 9.51 3523 Wickenhauser, LLC Bria of Alton Alton IL SNF 181 2032 44,840 100 % 624,862 0.4 % 13.94 727 North 17th St, LLC Bria of Belleville Belleville IL SNF 180 2032 50,650 100 % 621,410 0.4 % 12.27 Master Lease Illinois 2 1623 West Delmar Ave, LLC Bria of Godfrey Godfrey IL SNF 68 2032 15,740 100 % 234,755 0.2 % 14.91 393 Edwardsville Road LLC Bria of Wood River Wood River IL SNF 106 2032 29,491 100 % 365,941 0.3 % 12.41 11 Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF Master Lease Landmark 8200 National Ave Realty, LLC Landmark of Midwest City Hospital Midwest City OK LTACH 31 2032 49,319 100 % 149,088 0.1 % 3.02 Oak Lawn Nursing Realty, LLC Oak Lawn Respiratory and Rehab center, LLC Oak Lawn IL SNF 143 2028 37,854 100 % 687,731 0.5 % 18.17 Forest View Nursing Realty, LLC Forest View Rehab and Nursing center, LLC Itasca IL SNF 144 2024 34,152 100 % 692,540 0.5 % 20.28 Parkshore Estates Nursing Realty, LLC Parkshore Estates Nursing & Rehab Center, LLC Chicago IL SNF 318 2024 94,018 100 % 1,529,359 1.1 % 16.27 Hill Valley Master Lease 1015 Magazine Street, LLC Landmark of River City Rehabilitation and Nursing Center Louisville KY SNF 92 2032 36,050 100 % 2,060,536 1.4 % 57.16 900 Gagel Avenue, LLC Landmark of Iroquois Park Rehabilitation and Nursing Center Louisville KY SNF 120 2032 36,374 100 % 2,687,656 1.9 % 73.89 308 West Maple Avenue, LLC Landmark of Lancaster Rehabilitation and Nursing Center Lancaster KY SNF 96 2032 42,438 100 % 2,150,125 1.5 % 50.67 1155 Eastern Parkway, LLC Landmark of Louisville Rehabilitation and Nursing Center Louisville KY SNF 252 2032 106,250 100 % 5,644,077 4.0 % 53.12 203 Bruce Court, LLC Landmark of Danville Rehabilitation and Nursing Center Danville KY SNF 90 2032 26,000 100 % 2,015,742 1.4 % 77.53 203 Bruce Court, LLC Goldenrod Village Assisted Living Center Danville KY ALF 16 2032 19,500 100 % 358,354 0.3 % 18.38 203 Bruce Court, LLC Hillside Suites Independent Living Center Danville KY Independent Living 0 2032 1,000 - 0.0 % 120 Life Care Way, LLC Landmark of Bardstown Rehabilitation and Nursing Center Bardstown KY SNF 100 2032 36,295 100 % 2,239,713 1.6 % 61.71 1033 North Highway 11, LLC Landmark of Laurel Creek Rehabilitation and Nursing Center Manchester KY SNF 106 2032 32,793 100 % 2,374,096 1.7 % 72.40 945 West Russell Street, LLC Landmark of Elkhorn City Rehabilitation and Nursing Center Elkhorn City KY SNF 106 2032 31,637 100 % 2,374,096 1.7 % 75.04 420 Jett Drive, LLC Landmark of Breathitt County Rehabilitation and Nursing Center, LLC Jackson KY SNF 120 2032 32,581 100 % 2,687,656 1.9 % 82.49 1253 Lake Barkley Drive, LLC Landmark of Kuttawa, A Rehabilitation & Nursing Center Kuttawa KY SNF 65 2032 37,892 100 % 1,455,813 1.0 % 38.42 12 Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF Master Lease Ohio - 3090 Five Points Hartford Realty, LLC Continent Healthcare Co - Hartford Fowler OH SNF 54 2025 15,504 100 % 196,012 0.1 % 12.64 3121 Glanzman Rd Realty, LLC Continent Healthcare Co - Toledo Toledo OH SNF 84 2025 24,087 100 % 304,908 0.2 % 12.66 620 West Strub Rd Realty, LLC Continent Healthcare Co - Sandusky Sandusky OH SNF 50 2025 18,984 100 % 181,493 0.1 % 9.56 4250 Sodom Hutchings Road Realty, LLC Continent Healthcare Co - Cortland Cortland OH SNF 50 2025 14,736 100 % 181,493 0.1 % 12.32 Master Lease Tennessee 1 115 Woodlawn Drive, LLC Lakebridge a Waters Community, LLC Johnson City TN SNF 109 2031 37,734 100 % 1,026,061 0.7 % 27.19 146 Buck Creek Road, LLC Waters of Roan Highlands, LLC Roan Mountain TN SNF 80 2031 30,139 100 % 753,072 0.5 % 24.99 704 5th Avenue East, LLC Waters of Springfield, LLC Springfield TN SNF 66 2031 19,900 100 % 621,284 0.4 % 31.22 2501 River Road, LLC Waters of Cheatham, LLC Ashland City TN SNF 80 2031 37,953 100 % 753,072 0.5 % 19.84 202 Enon Springs East, LLC Waters of Smyrna, LLC Smyrna TN SNF 91 2031 34,070 100 % 856,619 0.6 % 25.14 140 Technology Lane, LLC Waters of Johnson City, LLC Johnson City TN SNF 84 2031 34,814 100 % 790,726 0.6 % 22.71 835 Union Street, LLC Waters of Shelbyville, LLC Shelbyville TN SNF 96 2031 44,327 100 % 903,686 0.6 % 20.39 1340 North Grundy Quarles Highway, LLC Waters of Gainesboro, LLC Gainesboro TN SNF 83 2031 20,866 100 % 781,312 0.5 % 37.44 1340 North Grundy Quarles Highway, LLC Waters of Gainesboro, LLC Gainesboro TN ALF 25 2031 10,277 100 % 235,335 0.2 % 22.90 100 Netherland Lane, LLC Waters of Kingsport Kingsport TN SNF 67 2031 28,140 100 % 630,698 0.4 % 22.41 2648 Sevierville Road, LLC Waters of Maryville Maryville TN SNF 181 2031 49,810 100 % 1,703,825 1.2 % 34.21 Master Lease Tennessee 2 505 North Roan Street, LLC Agape Rehabilitation & Nursing Center, A Water’s Community Johnson City TN SNF 84 2031 27,100 100 % 1,628,910 1.1 % 60.11 14510 Highway 79, LLC Waters of McKenzie, A Rehabilitation & Nursing Center McKenzie TN SNF 66 2031 22,454 100 % 1,279,858 0.9 % 57.00 6500 Kirby Gate Boulevard, LLC Waters of Memphis, A Rehabilitation & Nursing Center Memphis TN SNF 90 2031 51,565 100 % 1,745,261 1.2 % 33.85 978 Highway 11 South, LLC Waters of Sweetwater, A Rehabilitation & Nursing Center Sweetwater TN SNF 90 2031 30,312 100 % 1,745,261 1.2 % 57.58 13 Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF 2830 Highway 394, LLC Waters of Bristol, A Rehabilitation & Nursing Center Bristol TN SNF 120 2031 53,913 100 % 2,327,014 1.6 % 43.16 Master Lease Arkansas 1 5301 Wheeler Avenue, LLC The Blossoms at Fort Smith Fort Smith AR SNF 117 2028 41,490 100 % 821,950 0.6 % 19.81 414 Massey Avenue, LLC The Blossoms at Mountain View Assisted Living Mountain View AR ALF 32 2028 12,548 100 % 224,807 0.2 % 17.92 706 Oak Grove Street, LLC The Blossoms at Mountain View Mountain View AR SNF 97 2028 31,586 100 % 681,445 0.5 % 21.57 8701 Riley Drive, LLC The Blossoms at Woodland Hills Little Rock AR SNF 140 2028 61,543 100 % 983,530 0.7 % 15.98 1516 Cumberland Street, LLC The Blossoms at Cumberland Little Rock AR SNF 120 2028 82,328 100 % 843,025 0.6 % 10.24 5720 West Markham Street, LLC The Blossoms at Midtown Little Rock AR SNF 154 2028 56,176 100 % 1,081,883 0.8 % 19.26 2501 John Ashley Drive, LLC The Blossoms at North Little Rock Little Rock AR SNF 140 2028 65,149 100 % 983,530 0.7 % 15.10 1513 South Dixieland Road, LLC The Blossoms at Rogers Rogers AR SNF 110 2028 32,962 100 % 772,773 0.5 % 23.44 826 North Street, LLC The Blossoms at Stamps Stamps AR SNF 94 2028 30,924 100 % 660,370 0.5 % 21.35 Master Lease Arkasnas 2 326 Lindley Lane, LLC The Blossoms at Newport Newport AR SNF 120 2029 49,675 100 % 850,639 0.6 % 17.12 2821 West Dixon Road, LLC The Blossoms at West Dixon Little Rock AR SNF 140 2029 42,825 100 % 992,412 0.7 % 23.17 2821 West Dixon Road, LLC The Blossoms at West Dixon Assisted Living Little Rock AR ALF 32 2029 7,557 100 % 226,837 0.2 % 30.02 552 Golf Links Road, LLC The Blossoms at Hot Springs Hot Springs AR SNF 152 2029 30,372 100 % 1,077,476 0.8 % 35.48 Master Lease Indiana 2 8400 Clearvista Place LLC The Waters of Castleton SNF, LLC Indianapolis IN SNF 114 2034 41,400 100 % 1,023,207 0.7 % 24.72 524 Anderson Road LLC The Waters of Chesterfield SNF, LLC Chesterfield IN SNF 60 2034 21,900 100 % 538,530 0.4 % 24.59 640 West Ellsworth Street LLC The Waters of Columbia City SNF, LLC Columbia City IN SNF 84 2034 30,462 100 % 753,942 0.5 % 24.75 11563 West 300 South LLC The Waters of Dunkirk SNF, LLC Dunkirk IN SNF 46 2034 19,800 100 % 412,873 0.3 % 20.85 5544 East State Boulevard LLC The Waters of Fort Wayne SNF, LLC Ft.
Our leases have a weighted-average annualized lease income per leased square foot of $25.39, and a weighted-average remaining lease term of approximately 7.2 years. To our knowledge, except as noted below, none of our current tenants are in default under any of the leases.
Our leases have a weighted-average annualized lease income per leased square foot of $26.78, and a weighted-average remaining lease term of approximately 7.2 years. To our knowledge, except as noted below, none of our current tenants are in default under any of the leases.
These properties are operated by affiliates of Infinity Healthcare Management (“Infinity Healthcare”), a healthcare consulting business, beneficially owned by Mr. Gubin and Mr. Blisko/. Infinity Healthcare and its affiliates are one of the largest groups of operators of skilled nursing facilities in the Midwest with over 9,000 beds.
These properties are operated by affiliates of Infinity Healthcare Management (“Infinity Healthcare”), a healthcare consulting business, beneficially owned by Mr. Gubin and Mr. Blisko/. Infinity Healthcare and its affiliates are one of the largest groups of operators of skilled nursing facilities in the Midwest with over 8,500 beds.
Each of our properties is leased under a separate lease agreement, although 15 groups of properties, covering a total of 114 facilities, are subject to 15 master lease agreements. Each master lease agreement provides that the tenants under the master lease are jointly and severally liable for the obligations of all of the other tenants under such master lease.
Each of our properties is leased under a separate lease agreement, although 16 groups of properties, covering a total of 127 facilities, are subject to 16 master lease agreements. Each master lease agreement provides that the tenants under the master lease are jointly and severally liable for the obligations of all of the other tenants under such master lease.
Rental income from leases with these related party tenants represented 55.2% of all rental income for the year ended December 31, 2024. We believe these affiliated relationships provide a strong alignment of interests between us and our tenants and offers us increased operating flexibility with regards to potentially replacing underperforming tenants or evaluating acquisitions in new states.
Rental income from leases with these related party tenants represented 48.5% of all rental income for the year ended December 31, 2025. We believe these affiliated relationships provide a strong alignment of interests between us and our tenants and offers us increased operating flexibility with regards to potentially replacing underperforming tenants or evaluating acquisitions in new states.
Gubin began his career working at a skilled nursing operator in 1998 and developed in-depth knowledge of the business before purchasing his first skilled nursing facility in 2003. Mr. Gubin has successfully raised equity and debt capital to facilitate over 140 real estate related/healthcare related acquisitions totaling over $1.5 billion in gross investment.
Gubin began his career working as a skilled nursing operator in 1998 and developed in-depth knowledge of the business before purchasing his first skilled nursing facility in 2003. Mr. Gubin has successfully raised equity and debt capital to facilitate over 160 real estate related/healthcare related acquisitions totaling over $1.6 billion in gross investment.
Additionally, our leases are structured to provide us with key credit support and have credit enhancement provisions that may include non-refundable security deposits of up to 6 months, personal and corporate guarantees and cross-default provisions under our master leases. Approximately 84.1% of our total annualized rental revenue is generated through our 15 master leases that have cross-default and cross-collateralization provisions.
Additionally, our leases are structured to provide us with key credit support and have credit enhancement provisions that may include non-refundable security deposits of up to 6 months, personal and corporate guarantees and cross-default provisions under our master leases. Approximately 89.4% of our total annualized rental revenue is generated through our 16 master leases that have cross-default and cross-collateralization provisions.
(2) The expiration dates do not reflect the exercise of any renewable options. Related Party Tenants As of March 13, 2025, we leased 67 of our facilities to tenants that are affiliates of: (i) Moishe Gubin who serves as Chairman of the Board and our Chief Executive Officer and (ii) Michael Blisko, who serves as one of our directors.
(2) The expiration dates do not reflect the exercise of any renewable options. Related Party Tenants As of December 31, 2025, we leased 66 of our facilities to tenants that are affiliates of: (i) Moishe Gubin who serves as Chairman of the Board and our Chief Executive Officer and (ii) Michael Blisko, who serves as one of our directors.
Human Capital Resource Management As of December 31, 2024, we had 9 full-time employees. Our employees are primarily located at our corporate office in Chicago. Our employees are not members of any labor union, and we consider our relations with our employees to be satisfactory.
Human Capital Resource Management As of December 31, 2025, we had 9 full-time employees. Our employees are primarily located at our corporate offices in Chicago and Florida. Our employees are not members of any labor union, and we consider our relations with our employees to be satisfactory.
Our leases include 15 master lease agreements that cover 114 facilities leased to 114 tenants, with the remaining 16 leases each covering a single facility leased to one tenant. 67 of our tenants are related parties. Each property is operated as a healthcare facility by a licensed operator, which may be the tenant or a separate operator.
Our leases include 16 master lease agreements that cover 127 facilities leased to 126 tenants, with the remaining 16 leases each covering a single facility leased to one tenant. 66 of our tenants are related parties. Each property is operated as a healthcare facility by a licensed operator, which may be the tenant or a separate operator.
See “Item 1. Business — Our Leases.” 21 The following table summarizes information concerning the lease agreements that are not subject to a master lease agreement as of March 13, 2025 (dollars in thousands): Individual Leases Lessor State Facility Type Rentable Sq. Ft.
See “Item 1. Business — Our Leases.” 24 The following table summarizes information concerning the lease agreements that are not subject to a master lease agreement as of December 31, 2025 (dollars in thousands): Individual Leases Lessor State Facility Type Rentable Sq. Ft.
As of March 13, 2025, approximately 55.2% of our annualized base rent is received from such related-party tenants. The failure of these tenants to fulfill their obligations under their leases or renew their leases upon expiration could have a material adverse effect on our business, financial condition and results of operations.
As of December 31, 2025, approximately 48.5% of our annualized base rent is received from such related-party tenants. The failure of these tenants to fulfill their obligations under their leases or renew their leases upon expiration could have a material adverse effect on our business, financial condition and results of operations.
We hold fee title to 119 of these properties and hold one property under a long-term lease. These properties are located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas. Our 120 properties comprise 130 healthcare facilities, consisting of 118 skilled nursing facilities, 10 assisted living facilities and 2 long-term acute care hospitals.
We hold fee title to 132 of these properties and hold one property under a long-term lease. These properties are located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. Our 133 properties comprise 143 healthcare facilities, consisting of 131 skilled nursing facilities, 10 assisted living facilities and 2 long-term acute care hospitals.
Annualized Average Base Rent ($000s) % of Total Annualized Average Base Rent Ambassador Nursing Realty, LLC Illinois SNF 37,100 $ 1,005 0.7 % Momence Meadows Realty, LLC Illinois SNF 37,139 $ 1,038 0.8 % Lincoln Park Holdings, LLC Illinois SNF 34,362 $ 1,260 0.9 % Continental Nursing Realty, LLC Illinois SNF 53,653 $ 1,575 1.2 % Westshire Nursing Realty, LLC Illinois SNF 124,020 $ 1,788 1.3 % Belhaven Realty, LLC Illinois SNF 60,000 $ 2,135 1.5 % West Suburban Nursing Realty, LLC Illinois SNF 70,314 $ 1,962 1.5 % Niles Nursing Realty LLC Illinois SNF 46,480 $ 2,410 1.8 % Midway Neurological and Rehabilitation Realty, LLC Illinois SNF 120,000 $ 2,548 1.9 % 516 West Frech Street, LLC Illinois SNF 24,979 $ 498 0.4 % 4343 Kennedy Drive, LLC Illinois SNF 104,000 $ 479 0.4 % 1585 Perry Worth Rd, LLC Indiana SNF 32,650 $ 117 0.1 % 9300 Ballard Rd Realty, LLC Illinois SNF 70,556 $ 1,302 1.0 % 2301 North Oregon Realty, LLC Texas LTACH 24,660 $ 1,050 0.8 % 9209 Dollarway Road, LLC Arkansas SNF 45,771 $ 843 0.6 % 103 Har-Ber Road, LLC Oklahoma SNF 31,691 574 0.4 % Total (16) 917,375 $ 20,584 15.3 % Investment and Financing Policies Our properties are located in 11 states and we intend to continue to acquire properties in other states throughout the United States.
Annualized Average Base Rent ($000s) % of Total Annualized Average Base Rent Ambassador Nursing Realty, LLC Illinois SNF 37,100 $ 1,005 0.7 % Momence Meadows Realty, LLC Illinois SNF 37,139 $ 1,038 0.7 % Lincoln Park Holdings, LLC Illinois SNF 34,362 $ 1,260 0.9 % Continental Nursing Realty, LLC Illinois SNF 53,653 $ 1,575 1.1 % Westshire Nursing Realty, LLC Illinois SNF 124,020 $ 1,082 0.8 % Belhaven Realty, LLC Illinois SNF 60,000 $ 2,135 1.5 % West Suburban Nursing Realty, LLC Illinois SNF 70,314 $ 1,962 1.4 % Niles Nursing Realty LLC Illinois SNF 46,480 $ 2,410 1.7 % Midway Neurological and Rehabilitation Realty, LLC Illinois SNF 120,000 $ 2,548 1.8 % 516 West Frech Street, LLC Illinois SNF 24,979 $ 498 0.4 % 4343 Kennedy Drive, LLC Illinois SNF 104,000 $ 479 0.3 % 1585 Perry Worth Rd, LLC Indiana SNF 32,650 $ 117 0.1 % 9300 Ballard Rd Realty, LLC Illinois SNF 70,556 $ 1,302 0.9 % 2301 North Oregon Realty, LLC Texas LTACH 24,660 $ - - % 9209 Dollarway Road, LLC Arkansas SNF 45,771 $ 843 0.6 % 8200 National Ave Realty, LLC Oklahoma SNF 39,789 $ 510 0.4 % Total (16) 925,473 $ 18,764 13.3 % Investment and Financing Policies Our properties are located in 10 states and we intend to continue to acquire properties in other states throughout the United States.
Approximately 87.7% of our properties are held under a master lease which provides for cross default provisions, cross collateralization and diversification of risk. As of the date of this Form 10-K, our average remaining initial lease term is 7.2 years with average annual rent escalators of 2.8%. Most of our leases include two 5-year renewal options to extend the term.
Approximately 89.4% of our properties are held under a master lease which provides for cross default provisions, cross collateralization and diversification of risk. As of December 31, 2025, our average remaining initial lease term is 7.2 years with average annual rent escalators of 2.8%. Most of our leases include two 5-year renewal options to extend the term.
Elizabeth MO SNF 63 2033 20,927 100 % 569,678 0.4 % 27.22 Master Lease Kansas 520 E Morse Avenue LLC Advena Living of Bonner Springs Bonner Springs KS SNF 45 2034 13,456 100 % 349,745 0.3 % 25.99 440 N 4th Street LLC Clearwater Assisted and Independent Living Clearwater KS SNF 46 2034 20,260 100 % 357,518 0.3 % 17.65 620 Wood Avenue LLC Advena Living of Clearwater Clearwater KS ALF 55 2034 25,577 100 % 427,467 0.3 % 16.71 601 N Rose Hill Road LLC Advena Living of Fountainview Rose Hill KS SNF 68 2034 33,360 100 % 528,504 0.4 % 15.84 2015 SE 10th Avenue LLC Advena Living on 10th Topeka KS SNF 60 2034 22,877 100 % 466,327 0.3 % 20.38 1600 S Woodlawn Boulevard LLC Advena Living of Woodlawn Wichita KS SNF 80 2034 29,164 100 % 621,770 0.5 % 21.32 13 Lessor/Company Subsidiary Manager/ Tenant/ Operator City State Property type Number of licensed beds Tenant Lease Expiration Year (1) Rentable square feet Percent leased Annualized Lease Income (in $) % of total Annualized Lease Income Annualized lease income per SQF (in $) Individual Leases Ambassador Nursing Realty, LLC Ambassador Nursing and Rehab, LLC Chicago IL SNF 190 2026 37,100 100 % 1,005,313 0.7 % 27.10 Momence Meadows Realty, LLC Momence Meadows Nursing & Rehab Center, LLC Momence IL SNF 140 2025 37,139 100 % 1,038,000 0.8 % 27.95 Lincoln Park Holdings, LLC Lakeview Rehab and Nursing center, LLC Chicago IL SNF 178 2031 34,362 100 % 1,260,000 0.9 % 36.67 Continental Realty, LLC Continental Nursing and Rehab, LLC Chicago IL SNF 208 2031 53,653 100 % 1,575,348 1.2 % 29.36 Westshire Realty, LLC City View Multi care Center LLC Cicero IL SNF 485 2025 124,020 100 % 1,788,365 1.3 % 14.42 Belhaven Realty, LLC Belhaven Nursing and Rehab, LLC Chicago IL SNF 221 2026 60,000 100 % 2,134,570 1.6 % 35.58 West Suburban Nursing Realty, LLC West Suburban Nursing & Rehab Center, LLC Bloomingdale IL SNF 259 2027 70,314 100 % 1,961,604 1.5 % 27.90 Niles Nursing Realty, LLC Niles Nursing & Rehab, LLC Niles IL SNF 304 2026 46,480 100 % 2,409,998 1.8 % 51.85 Midway Neurological and Rehab Realty, LLC Midway Neurological and Rehab Center, LLC Bridgeview IL SNF 404 2026 120,000 100 % 2,547,713 1.9 % 21.23 516 West Frech St, LLC Parker Nursing and Rehab, LLC Streator IL SNF 102 2031 24,979 100 % 498,351 0.4 % 19.95 4343 Kennedy Drive, LLC Hope Creek Nursing and Rehabilitation Center, LLC East Moline IL SNF 245 2030 104,000 100 % 478,959 0.4 % 4.61 1585 Perry Worth Rd, LLC Waters of Lebanon LLC Lebanon IN SNF 64 2027 32,650 100 % 116,678 0.1 % 3.57 2301 North Oregon Realty, LLC Specialty Hospital Management El Paso TX LTACH 32 2029 24,660 100 % 1,050,853 0.8 % 42.61 9209 Dollarway Road, LLC The Blossoms at White Hall White Hall AR SNF 120 2029 45,771 100 % 843,022 0.6 % 18.42 9300 Ballard Rd Realty, LLC Zahav of Des Plaines Des Plaines IL SNF 231 2033 70,556 100 % 1,302,479 1.0 % 18.46 103 Har-Ber Road LLC Grand Lake Villa Grove OK SNF 100 2034 31,691 100 % 573,809 0.4 % 18.11 Total/Average 14,540 2032 5,307,309 100 % 134,751,524 100.0 % 25.39 (1) The tenant and the operator are the same for each facility other than the 32 SNF’s leased under the two Indiana master lease agreements and five SNF’s leased in Texas.
Elizabeth MO SNF 63 2040 20,927 100 % 551,756 0.4 % 26.37 1300 County Farm Road, LLC Cassville Health Center for Rehab and Healthcare Cassville MO SNF 60 2040 21,000 100 % 525,482 0.4 % 25.02 2350 Kanell Bouldevard, LLC Cedargate Healthcare Poplar Bluff MO SNF 124 2040 31,536 100 % 1,085,995 0.8 % 34.44 Master Lease Kansas 520 E Morse Avenue LLC Advena Living of Bonner Springs Bonner Springs KS SNF 45 2034 13,456 100 % 349,745 0.2 % 25.99 440 N 4th Street LLC Clearwater Assisted and Independent Living Clearwater KS SNF 46 2034 20,260 100 % 357,518 0.3 % 17.65 620 Wood Avenue LLC Advena Living of Clearwater Clearwater KS ALF 55 2034 25,577 100 % 427,467 0.3 % 16.71 601 N Rose Hill Road LLC Advena Living of Fountainview Rose Hill KS SNF 68 2034 33,360 100 % 528,504 0.4 % 15.84 2015 SE 10th Avenue LLC Advena Living on 10th Topeka KS SNF 60 2034 22,877 100 % 466,327 0.3 % 20.38 1600 S Woodlawn Boulevard LLC Advena Living of Woodlawn Wichita KS SNF 80 2034 29,164 100 % 621,770 0.4 % 21.32 Master Lease Oklahoma 103 Har-Ber Road LLC Grand Lake Villa Grove OK SNF 100 2035 31,691 100 % 675,357 0.5 % 21.31 2400 Whites Meadow Drive, LLC Harrah Nursing Center Harrah OK SNF 100 2035 37,136 100 % 675,357 0.5 % 18.19 701 S. 8th St, LLC McLoud Nursing McLoud OK SNF 80 2035 11,370 100 % 540,286 0.4 % 47.52 1400 South Main Street, LLC Betty Ann Nursing Grove OK SNF 60 2035 15,340 100 % 405,214 0.3 % 26.42 Individual Leases Ambassador Nursing Realty, LLC Ambassador Nursing and Rehab, LLC Chicago IL SNF 190 2031 37,100 100 % 1,005,313 0.7 % 27.10 Momence Meadows Realty, LLC Momence Meadows Nursing & Rehab Center, LLC Momence IL SNF 140 2025 37,139 100 % 1,038,000 0.7 % 27.95 Lincoln Park Holdings, LLC Lakeview Rehab and Nursing center, LLC Chicago IL SNF 178 2031 34,362 100 % 1,260,000 0.9 % 36.67 Continental Realty, LLC Continental Nursing and Rehab, LLC Chicago IL SNF 208 2031 53,653 100 % 1,575,348 1.1 % 29.36 16 Lessor/Company Subsidiary Manager/ Tenant/ Operator (1) City State Property type Number of licensed beds Tenant Lease Expiration Year (2) Rentable square feet Percent leased Annualized Lease Income % of total Annualized Lease Income Annualized lease income per SQF Westshire Realty, LLC City View Multi care Center LLC Cicero IL SNF 485 2025 124,020 100 % 1,082,928 0.8 % 8.73 Belhaven Realty, LLC Belhaven Nursing and Rehab, LLC Chicago IL SNF 221 2031 60,000 100 % 2,134,570 1.5 % 35.58 West Suburban Nursing Realty, LLC West Suburban Nursing & Rehab Center, LLC Bloomingdale IL SNF 259 2027 70,314 100 % 1,961,604 1.4 % 27.90 Niles Nursing Realty, LLC Niles Nursing & Rehab, LLC Niles IL SNF 304 2031 46,480 100 % 2,409,998 1.7 % 51.85 Midway Neurological and Rehab Realty, LLC Midway Neurological and Rehab Center, LLC Bridgeview IL SNF 404 2031 120,000 100 % 2,547,713 1.7 % 21.23 516 West Frech St, LLC Parker Nursing and Rehab, LLC Streator IL SNF 102 2031 24,979 100 % 498,351 0.3 % 19.95 4343 Kennedy Drive, LLC Hope Creek Nursing and Rehabilitation Center, LLC East Moline IL SNF 245 2030 104,000 100 % 478,959 0.3 % 4.61 1585 Perry Worth Rd, LLC Waters of Lebanon LLC Lebanon IN SNF 64 2027 32,650 100 % 116,678 0.1 % 3.57 2301 North Oregon Realty, LLC Specialty Hospital Management El Paso TX LTACH 32 2029 24,660 100 % - 0.0 % - 9209 Dollarway Road, LLC The Blossoms at White Hall White Hall AR SNF 120 2029 45,771 100 % 843,022 0.6 % 18.42 9300 Ballard Rd Realty, LLC Zahav of Des Plaines Des Plaines IL SNF 231 2033 70,556 100 % 1,302,479 0.9 % 18.46 8200 National Ave Realty, LLC Midwest City Post Acute and Rehab Midwest City OK SNF 106 2032 39,789 100 % 510,000 0.3 % 12.82 Total/Average 15,602 2032 5,327,707 100 % 142,675,460 100.0 % 29.11 (1) The tenant and the operator are the same for each facility other than the 40 SNF’s leased under the two Indiana master lease agreements and six SNF’s leased in Texas.
We have a portfolio that is diversified in terms of both geography and tenant composition. As of March 13, 2025, our portfolio is comprised of 120 healthcare-related properties with a total of 14,540 licensed beds located throughout Arkansas, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas.
We have a portfolio that is diversified in terms of both geography and tenant composition. As of December 31, 2025, our portfolio is comprised of 133 healthcare-related properties with a total of 15,602 licensed beds located throughout Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas.
We are entitled to monthly rent paid by the tenants and we do not receive any income or bear any expenses from the operation of such facilities. As of the date of this Form 10-K, the aggregate annualized average base rent for the expected life of the leases for our properties was approximately $134.8 million.
We are entitled to monthly rent paid by the tenants and we do not receive any income or bear any expenses from the operation of such facilities. As of December 31, 2025, the aggregate annualized average base rent for the expected life of the leases for our properties was approximately $142.7 million.
According to the Centers for Medicare & Medicaid Services, nursing home care facilities and continuing care retirement expenditures are projected to grow from approximately $196.8 billion in 2020, which includes federal expenditures in response to the COVID-19 pandemic, to approximately $266 billion in 2028.
According to the Centers for Medicare & Medicaid Services, nursing home care facilities and continuing care retirement expenditures are projected to grow from approximately $196.8 billion in 2020, which includes federal expenditures in response to the COVID-19 pandemic, to approximately $266 billion in 2028. 9 Tenants and Operators Our properties are currently leased to 143 tenants under 32 lease agreements.
ITEM 1. Business We are a self-managed and self-administered real estate company that specializes in the acquisition, ownership and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. As of the date of this Form 10-K, our portfolio consisted of 120 healthcare properties with an aggregate of 14,540 licensed beds.
ITEM 1. Business We are a self-managed and self-administered real estate company that specializes in the acquisition, ownership and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. As of December 31, 2025, our portfolio consisted of 133 healthcare properties with an aggregate of 15,602 licensed beds.
We are the general partner of the Operating Partnership and as of December 31, 2024 we own approximately 21.7% of the outstanding OP units.
We are the general partner of the Operating Partnership and as of December 31, 2025 we own approximately 24.0% of the outstanding OP units.
The following table summarizes information concerning the master lease agreements as of March 13, 2025 (dollars in thousands): Master Lease Agreements Master Lease Name States Facilities Count GLA Annualized Average Base Rent ($000s) % of Total Annualized Average Base Rent Master Lease Indiana 1 (1) IN 16 578,167 $ 19,175 14.2 % Master Lease Indiana 2 (1) IN 24 705,730 $ 16,623 12.3 % Master Lease Central Illinois 1 IL 3 138,678 $ 1,657 1.2 % Master Lease Central Illinois 2 IL 2 45,231 $ 601 0.5 % Master Lease Landmark TX/OK/ MI/IL 6 287,028 $ 4,374 3.3 % Master Lease Ohio OH 4 73,311 $ 864 0.6 % Master Lease Tennessee 1 (1) TN 11 348,030 $ 9,358 6.9 % Master Lease Tennessee 2 (1) TN 5 185,344 $ 8,726 6.5 % Master Lease Arkansas 1 AR 9 414,706 $ 7,053 5.2 % Master Lease Arkansas 2 AR 4 130,429 $ 3,147 2.3 % Master Lease Kentucky KY 11 438,810 $ 26,048 19.3 % Master Lease Missouri MO 8 355,776 $ 10,046 7.5 % Master Lease Kansas KS 6 144,694 $ 2,752 2.1 % Master Lease Texas 1 TX 3 55,584 $ 1,994 1.5 % Master Lease Texas 2 TX 2 184,659 $ 1,748 1.3 % Total (15) 114 4,086,177 $ 114,166 84.7 % (1) The tenants under the two master leases in Indiana and the two Tennessee master leases are affiliated with Moishe Gubin, who is our Chairman and Chief Executive Officer and Michael Blisko, who is one of our directors.
The following table summarizes information concerning the master lease agreements as of December 31, 2025 (dollars in thousands): Master Lease Agreements Master Lease Name States Facilities Count GLA Annualized Average Base Rent ($000s) % of Total Annualized Average Base Rent Master Lease Indiana 1 (1) IN 16 578,167 $ 19,175 13.4 % Master Lease Indiana 2 (1) IN 24 705,730 $ 16,623 11.7 % Master Lease Central Illinois 1 IL 3 138,678 $ 1,657 1.2 % Master Lease Central Illinois 2 IL 2 45,231 $ 601 0.4 % Master Lease Landmark TX/OK/IL 4 215,343 $ 3,051 2.1 % Master Lease Ohio OH 4 73,311 $ 864 0.6 % Master Lease Tennessee 1 (1) TN 11 348,030 $ 9,056 6.3 % Master Lease Tennessee 2 (1) TN 5 185,344 $ 8,726 6.1 % Master Lease Arkansas 1 AR 9 414,706 $ 7,053 4.9 % Master Lease Arkansas 2 AR 4 130,429 $ 3,147 2.2 % Master Lease Kentucky KY 11 438,810 $ 26,048 18.3 % Master Lease Missouri MO 10 408,312 $ 11,342 7.9 % Master Lease Kansas KS 6 144,694 $ 2,752 1.9 % Master Lease Texas TX 3 55,584 $ 1,994 1.4 % Master Lease Tide Group MO/TX 11 408,312 $ 9,518 6.7 % Master Lease Oklahoma OK 4 95,537 2,296 1.6 % Total (16) 127 4,386,218 123,903 86.7 % (1) The tenants under the two master leases in Indiana and the two Tennessee master leases are affiliated with Moishe Gubin, who is our Chairman and Chief Executive Officer and Michael Blisko, who is one of our directors.
Since January 2019 we have grown significantly through acquisitions, having purchased 59 properties, with an aggregate purchase price of approximately $414.0 million and weighted average lease yield of 15.6%. The weighted average lease yield is calculated as the annualized average annual base rent for the expected life of the leases divided by total purchase price.
Since January 2020 we have grown significantly through acquisitions, having purchased 72 facilities, with an aggregate purchase price of approximately $439.8 million and weighted average lease yield of 13.9%. The weighted average lease yield is calculated as the annualized average annual base rent for the expected life of the leases divided by total purchase price.
Geographic Diversification As of March 13, 2025, our portfolio of 120 properties is broadly diversified by geographic location across eleven U.S. states, comprising Arkansas, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas.
Geographic Diversification As of December 31, 2025, our portfolio of 143 facilities is broadly diversified by geographic location across ten U.S. states, comprising Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas.
The following table contains information regarding our healthcare facility portfolio by geography, as of March 13, 2025: State Number of Properties Facility Type Licensed Bed Count Annualized Average Base Rent (Amounts in $000s) % of Total Annualized Average Base Rent Indiana 36 36 SNFs 5 ALFs 3,404 $ 35,914 26.65 % Illinois 20 20 SNFs 4,226 23,401 17.37 % Tennessee 15 14 SNFs 1 ALF 1,412 18,085 13.42 % Arkansas 13 12 SNFs 2 ALFs 1,568 11,044 8.20 % Kentucky 10 10 SNFs 1 ALF 1,163 26,048 19.33 % Missouri 8 8 SNFs 1,111 10,046 7.46 % Kansas 6 5 SNFs 1 ALF 354 2,751 2.04 % Texas 5 5 SNFs 1 LTACH 727 4,793 3.56 % Oklahoma 2 2 SNFs 1 LTACH 237 1,286 0.95 % Ohio 4 4 SNFs 238 864 0.64 % Michigan 1 1 SNF 100 519 0.39 % Totals 120 117 SNFs 10 ALFs 2 LTACHs 14,540 $ 134,751 100.0 % 16 Competitive Strengths We believe that the following competitive strengths provide a solid foundation for the sustained growth of our business and successful execution of our business strategies: Diversified Portfolio.
The following table contains information regarding our healthcare facility portfolio by geography, as of December 31, 2025: State Number of Properties Facility Type Licensed Bed Count Annualized Average Base Rent (Amounts in $000s) % of Total Annualized Average Base Rent Indiana 36 36 SNFs 5 ALFs 3,404 $ 35,914 25.2 % Kentucky 10 10 SNFs 1 ALF 1,163 26,048 18.3 % Illinois 20 20 SNFs 4,226 22,463 15.7 % Tennessee 15 15 SNFs 1 ALF 1,412 17,782 12.5 % Missouri 18 18 SNFs 1,921 17,348 12.2 % Arkansas 13 12 SNFs 2 ALFs 1,568 11,044 7.7 % Texas 6 5 SNFs 1 LTACH 839 5,506 3.9 % Oklahoma 5 5 SNFs 1 LTACH 477 2,955 2.1 % Kansas 6 5 SNFs 1 ALF 354 2,751 1.9 % Ohio 4 4 SNFs 238 864 0.6 % Totals 133 131 SNFs 10 ALFs 2 LTACHs 15,602 $ 142,675 100.0 % 19 Competitive Strengths We believe that the following competitive strengths provide a solid foundation for the sustained growth of our business and successful execution of our business strategies: Diversified Portfolio.
As of the date of this Form 10-K, 67 facilities representing 52.9% of our annualized base rent are leased to and operated by related parties that are affiliates of Moishe Gubin, who is our Chairman and Chief Executive Officer and Michael Blisko, who is one of our directors.
As of December 31, 2025, 66 facilities representing 48.5% of our annualized base rent are leased to and operated by related parties that are affiliates of Moishe Gubin, who is our Chairman and Chief Executive Officer and Michael Blisko, who is one of our directors.
From January 1, 2024, through March 13, 2025, we acquired 21 skilled nursing and 2 assisted living facilities for a total cost of $154.3 million (including leasehold improvements), which includes capitalized acquisition costs.
During that period, we expanded our geographic footprint from nine states to ten states. From January 1, 2025, through December 31, 2025, we acquired 19 skilled nursing and 1 assisted living facilities for a total cost of $112.1 million (including leasehold improvements), which includes capitalized acquisition costs.
Since 2019, our aggregate annualized average base rent for the expected life of the leases for our properties has grown at an approximate 13.1% CAGR from $72.8 million in fiscal year 2019 to $134.8 million as of the date of this Form 10-K.
Since 2020, our aggregate annualized average base rent for the expected life of the leases for our properties has grown at an approximate 13.4% CAGR from $75.3 million in fiscal year 2019 to $142.7 million as of December 31, 2025. In addition, our Adjusted EBITDA and FFO from 2020 to 2025 grew at an approximate 13.5% and 13.3% CAGR, respectively.
Removed
In addition, our Adjusted EBITDA and FFO from 2019 to 2024 grew at an approximate 8.4% and 12.8% CAGR, respectively. During that period, we expanded our geographic footprint from nine states to eleven states.
Removed
Although skilled nursing and seniors housing occupancy rates have declined during the COVID-19 pandemic, we believe that these trends in population will support an increasing demand for skilled nursing services in the long-term, which in turn will likely support an increasing demand for the services provided within our properties. 9 Tenants and Operators Our properties are currently leased to 130 tenants under 31 lease agreements.
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
1 edited+0 added−0 removed6 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
1 edited+0 added−0 removed6 unchanged
2024 filing
2025 filing
Biggest changeTo date, cybersecurity incidents and risks have not materially affected us, including our business strategy, results of operations, or financial condition.
Biggest changeTo date, cybersecurity incidents and risks have no t materially affected us, including our business strategy, results of operations, or financial condition.
Item 2. Properties
Properties — owned and leased real estate
5 edited+0 added−0 removed0 unchanged
Item 2. Properties
Properties — owned and leased real estate
5 edited+0 added−0 removed0 unchanged
2024 filing
2025 filing
Biggest changeFt. 2025 6 234,470 4.84 % 3,690,270 2.74 % $ 15.74 2026 4 263,580 5.44 % 8,097,593 6.00 % $ 30.72 2027 2 102,964 2.12 % 2,078,281 1.54 % $ 20.18 2028 9 414,706 8.55 % 7,053,312 5.23 % $ 17.01 2029 6 200,860 4.14 % 5,041,239 3.74 % $ 25.10 Thereafter 97 3,632,583 74.91 % 108,790,821 80.73 % $ 29.95 Total 124 4,849,163 100.0 % $ 134,751,516 100.0 % $ 23.12 (1) The year of each lease expiration is based on current contract terms. 31
Biggest changeFt. 2026 1 37,139 0.7 % 1,038,000 0.7 % $ 27.94 2027 2 102,964 1.9 % 2,078,281 1.5 % $ 20.18 2028 9 414,706 7.8 % 7,053,312 4.9 % $ 17.01 2029 6 200,860 3.8 % 3,990,387 2.8 % $ 19.87 2030 9 440,891 8.3 % 9,440,457 6.6 % $ 21.41 Thereafter 116 4,131,147 77.5 % 119,075,022 83.5 % $ 28.82 Total 143 5,327,707 100.0 % $ 142,675,459 100.0 % $ 26.80 (1) The year of each lease expiration is based on current contract terms. 34
The following table displays the expiration of the annualized contractual cash rental income under our lease agreements as of December 31, 2024: Lease Expirations Year of Lease Expiration (1) Number of Leases Facilities GLA of Leases Expiring Percent of Portfolio GLA Annualized Base Rent Percentage of Total Annualized Base Rent Annualized Base Rent Per Sq.
The following table displays the expiration of the annualized contractual cash rental income under our lease agreements as of December 31, 2025: Lease Expirations Year of Lease Expiration (1) Number of Leases Facilities GLA of Leases Expiring Percent of Portfolio GLA Annualized Base Rent Percentage of Total Annualized Base Rent Annualized Base Rent Per Sq.
Real Estate and Accumulated Depreciation” of this Annual Report on Form 10-K. As of December 31, 2024, almost all of our properties are leased under long-term, triple-net leases.
Real Estate and Accumulated Depreciation” of this Annual Report on Form 10-K. As of December 31, 2025, almost all of our properties are leased under long-term, triple-net leases.
ITEM 2. Properties As of the date of this Report, we hold fee title to 119 of these properties and hold one property under a long-term lease. These properties are located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas.
ITEM 2. Properties As of the date of this Report, we hold fee title to 132 of these properties and hold one property under a long-term lease. These properties are located across Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas.
Our 120 properties comprise 130 healthcare facilities, consisting of the following: ● 118 stand-alone skilled nursing facilities; ● two dual-purpose facilities used as both skilled nursing facilities and long-term acute care hospitals; and ● 10 assisted living facilities. Information regarding our properties as of December 31, 2024, are included in Item 15. “Exhibits and Financial Statement Schedules—Schedule III.
Our 133 properties comprise 143 healthcare facilities, consisting of the following: ● 131 stand-alone skilled nursing facilities; ● two dual-purpose facilities used as both skilled nursing facilities and long-term acute care hospitals; and ● 10 assisted living facilities. Information regarding our properties as of December 31, 2025, are included in Item 15. “Exhibits and Financial Statement Schedules—Schedule III.
Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
3 edited+6 added−2 removed14 unchanged
Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
3 edited+6 added−2 removed14 unchanged
2024 filing
2025 filing
Biggest changeWe have potential direct exposure for these claims because the subsidiaries of the Predecessor Company that were named as defendants are now subsidiaries of the Operating Partnership.
Biggest changeIn each of these complaints, the plaintiffs asserted claims for fraud, breach of contract and rescission arising out of the defendants' alleged failure to perform certain post-closing obligations under the purchase contracts. We had potential direct exposure for these claims because the subsidiaries of the Predecessor Company that were named as defendants are now subsidiaries of the Operating Partnership.
Additionally, the Operating Partnership is potentially liable for the claims made against Moishe Gubin, Michael Blisko and the Predecessor Company pursuant to the provisions of the contribution agreement, under which the Operating Partnership assumed all of the liabilities of the Predecessor Company and agreed to indemnify the Predecessor Company and its affiliates for such liabilities.
Additionally, the Operating Partnership was potentially liable for the claims made against Moishe Gubin, Michael Blisko and the Predecessor Company pursuant to the provisions of the contribution agreement, under which the Operating Partnership assumed all the liabilities of the Predecessor Company and agreed to indemnify the Predecessor Company and its affiliates for such liabilities.
We believe this matter will be resolved without a material adverse effect to the Company. As noted above, the March 2020 and January 2021 complaints also related to the Predecessor Company’s planned acquisition of five properties located in Massachusetts.
As noted above, the March 2020 and January 2021 complaints also related to the Predecessor Company’s planned acquisition of five properties located in Massachusetts.
Removed
The dismissal was granted, but has been appealed to the Illinois Appellate Court, with no substantive movement on the matter to date. In each of these complaints, the plaintiffs asserted claims for fraud, breach of contract and rescission arising out of the defendants alleged failure to perform certain post-closing obligations under the purchase contracts.
Added
The dismissal was granted, but has been appealed to the Illinois Appellate Court, with no substantive movement on the matter to date. In April of 2024, Joseph Schwartz, Rosie Schwartz and several companies controlled by them filed a fourth complaint in the Circuit Court in Pulaski County, Arkansas.
Removed
We and the named defendants believe that the claims set forth in the complaints are without merit. The named defendants intend to vigorously defend the litigation and to assert counterclaims against the plaintiffs based on their failure to fulfill their obligations under the purchase contracts, interim management agreement, and operations transfer agreements.
Added
This fourth complaint had nearly identical claims as the federal case and the Illinois state court matter. In November 2024, the court dismissed all rescission claims, finding plaintiffs had an adequate remedy at law in the form of monetary damages, ordered dissolution of a lis pendens plaintiffs had filed against certain properties, and identified additional pleading deficiencies in the complaint.
Added
The court granted plaintiffs leave to amend, and plaintiffs filed a second amended complaint. On March 10, 2026, the court dismissed the second amended complaint with prejudice as to all defendants, finding that plaintiffs failed to cure the previously identified deficiencies.
Added
The court also denied plaintiffs' motion for a temporary and permanent restraining order, finding no irreparable harm, an adequate remedy at law, and no likelihood of success on the merits. The dismissal with prejudice bars plaintiffs from refiling these claims, subject to any appeal. As of the date of this filing, no appeal has been filed.
Added
As described above, the federal action was dismissed for lack of subject matter jurisdiction, the first Arkansas action was dismissed without prejudice, the Illinois state court action has been dismissed, and the second Arkansas action (filed April 2024) was dismissed with prejudice on March 10, 2026.
Added
The plaintiffs have 30 days from March 10, 2026 (the date the court entered the dismissal order) to file a notice of appeal. As of the date of this filing, no notice of appeal has been filed.
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
6 edited+2 added−2 removed7 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
6 edited+2 added−2 removed7 unchanged
2024 filing
2025 filing
Biggest changePeriod Number of Shares Average Price Paid Per Share Cumulative Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs Beginning Balance Jan 1, 2024 5,953 $ 7.84 5,953 $ 4,954,000 Q1 2024 19,348 7.96 25,301 4,800,000 Q2 2024 54,057 9.42 79,358 4,291,000 Q3 2024 32,568 10.66 111,926 3,944,000 Q4 2024 143,022 10.23 254,948 2,481,000 Total 254,948 $ 9.93 254,948 $ 2,481,000 Securities Authorized for Issuance under Equity Compensation Plans The information required by Item 5 is incorporated by reference to our Definitive Proxy Statement for our 2024 annual stockholders’ meeting.
Biggest changePeriod Number of Shares Average Price Paid Per Share Cumulative Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs Beginning Balance Jan 1, 2025 254,948 $ 9.93 254,948 $ 2,481,000 Q1 2025 - - 254,948 2,481,000 Q2 2025 64,636 10.09 319,584 1,827,000 Q3 2025 - - 319,584 1,827,000 Q4 2025 - - 319,584 1,827,000 Total 319,584 $ 9.93 319,584 $ 1,827,000 Securities Authorized for Issuance under Equity Compensation Plans The information required by Item 5 is incorporated by reference to our Definitive Proxy Statement for our 2025 annual stockholders’ meeting.
In addition, as of March 13, 2025, the Operating Partnership had 43,310,875 outstanding OP Units held by 7 limited partners other than the Company. No public trading market exists for the OP Units. To maintain REIT status, we are required each year to distribute to stockholders at least 90% of our annual REIT taxable income after certain adjustments.
In addition, as of March 19, 2026, the Operating Partnership had 42,462,059 outstanding OP Units held by seven limited partners other than the Company. No public trading market exists for the OP Units. To maintain REIT status, we are required each year to distribute to stockholders at least 90% of our annual REIT taxable income after certain adjustments.
Following is the characterization of our annual cash dividends on common stock for 2024: (dollars in thousands) Ordinary dividend $ 3,457 Non-dividend distributions $ 524 Capital Gain Distribution $ 54 Total taxable distribution $ 4,035 Purchases and Sale of Equity Securities by the Issuer and Affiliated Purchasers On July 12, 2024, the Company filed a Registration Statement on Form S-3 with the Securities and Exchange Commission (“SEC”).
Following is the characterization of our annual cash dividends on common stock for 2025: (dollars in thousands) Ordinary dividend $ 6,386 Non-dividend distributions $ 1,206 Capital Gain Distribution $ 42 Total taxable distribution $ 7,634 Purchases and Sale of Equity Securities by the Issuer and Affiliated Purchasers (ATM Program) On July 12, 2024, the Company filed a Registration Statement on Form S-3 with the Securities and Exchange Commission (“SEC”).
As of December 31, 2024 the Company had purchased 254,948 shares in aggregate of common stock at an average price per share of $9.93 and an aggregate repurchase price of $2.5 million dollars.
As of December 31, 2025, the Company had purchased 319,584 shares in aggregate of common stock at an average price per share of $9.93 and an aggregate repurchase price of $3.2 million dollars.
During 2024, the Company purchased and retired 248,995 shares of our common stock in the open market at an average price per share of $9.93 and an aggregate repurchase cost of $2.5 million The following table sets forth information regarding the Company’s quarterly repurchase of shares of its outstanding common stock during as of December 31, 2024.
During 2025, the Company purchased and retired 64,636 shares of our common stock in the open market at an average price per share of $10.09 and an aggregate repurchase cost of $0.7 million The following table sets forth information regarding the Company’s quarterly repurchase of shares of its outstanding common stock during as of December 31, 2025.
During 2024, the Company converted 1,947,078 OP Units into shares of common stock. On November 9, 2023 the Board of Directors authorized the repurchase of up to $5 million of the Company’s common stock.
The company during this time also converted 176,899 OP Units for cash. The average cost was $11.45 per share. On November 9, 2023 the Board of Directors authorized the repurchase of up to $5 million of the Company’s common stock.
Removed
The following table sets forth, for the periods indicated, the high and low sales prices for our common stock as reported for each quarter of 2024. This information reflects inter-dealer prices, without retail mark-up, markdown or commission and may not represent actual transactions.
Added
As of March 19th, 2026, approximately 5,462 stockholders of record owned 13,257,425 issued and outstanding shares of common stock.
Removed
High Low Quarter Ended March 31, 2024 $ 7.95 $ 7.70 Quarter Ended June 30, 2024 $ 11.41 $ 7.95 Quarter Ended September 30, 2024 $ 12.84 $ 9.57 Quarter Ended December 31, 2024 $ 12.81 $ 9.40 As of March 13, 2025, 4,041 stockholders of record owned 12,217,351 issued and outstanding shares of common stock.
Added
During 2025 the company issued 197,102 shares in the ATM program at an average price of $11.79 per share netting the company $2.3 million dollars. During 2024, the Company converted 1,947,078 OP Units into shares of common stock. During 2025, the Company converted 1,056,200 OP Units into shares of common stock.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
46 edited+24 added−32 removed73 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
46 edited+24 added−32 removed73 unchanged
2024 filing
2025 filing
Biggest changeResults of Operations Operating Results Year Ended December 31, 2024 Compared to Year Ended December 31, 2023: Year Ended December 31, Increase / Percentage (dollars in thousands) 2024 2023 (Decrease) Difference Rental revenues $ 117,058 $ 99,805 $ 17,253 17.3 % Expenses: Depreciation 29,031 26,207 2,824 10.8 % Amortization 4,657 3,028 1,629 53.8 % Loss on real estate investment impairment - 2,451 (2,451 ) 100.0 % General and administrative expenses 6,851 5,662 1,189 21.0 % Property and other taxes 14,489 14,459 30 0.2 % Facility rent expenses 727 559 168 30.1 % Total Expenses 55,755 52,366 3,389 6.5 % Interest expense, net 32,603 24,443 8,160 33.4 % Amortization of interest expense 657 560 97 17.3 % Mortgage Insurance Premium 1,548 1,671 (123 ) (7.9 )% Total Interest Expenses 34,808 26,674 8,134 30.5 % Other income (loss) Other income (loss) 10 (983 ) (973 ) 99 % Foreign currency transaction gain - 462 (462 ) 100 % Net Income 26,505 20,244 6,261 30.9 % Net income attributable to non-controlling interest (22,410 ) (17,748 ) (4,662 ) 26.3 % Net Income attributable to common stockholders 4,095 2,496 1,599 64.1 % Basic and diluted income per common share $ 0.57 $ 0.39 0.18 46.2 % 35 Rental revenues: Rental revenues during 2024 increased by $17.2 million or 17.3% compared to fiscal year 2023, The additional rental income arising from the renegotiation of certain leases and the receipt of rent from the acquisition of 15 properties and additional property taxes being reimbursed by the tenants.
Biggest changeResults of Operations Operating Results Year Ended December 31, 2025 Compared to Year Ended December 31, 2024: Year Ended December 31, Increase / Percentage (dollars in thousands) 2025 2024 (Decrease) Difference Rental revenues $ 154,999 $ 117,058 $ 37,941 32 % Expenses: Depreciation 35,774 29,031 6,743 23 % Amortization 10,475 4,657 5,818 125 % General and administrative expenses 8,608 6,851 1,757 26 % Property and other taxes 15,247 14,489 758 5 % Facility rent expenses 609 727 (118 ) (16 )% Total Expenses 70,713 55,755 14,958 27 % Interest expense, net 48,612 32,603 16,009 49 % Amortization of interest expense 804 657 147 22 % Mortgage Insurance Premium 1,536 1,548 (12 ) (1 )% Total Interest Expenses 50,952 34,808 16,144 46 % Other (loss) income Other (loss) income (28 ) 10 (38 ) (380 )% Net Income 33,306 26,505 6,801 26 % Net income attributable to non-controlling interest (25,731 ) (22,410 ) (3,321 ) (15 )% Net Income attributable to common stockholders 7,575 4,095 3,480 85 % Basic and diluted income per common share $ 0.60 $ 0.57 0.03 5 % 39 Rental revenues: Rental revenues increased $37.9 million, or 32.4%, compared to fiscal year 2024.
Accordingly, we actively monitor certain key factors, including changes in those factors that we believe may provide early indications of conditions that may affect the level of risk in our lease portfolio. 43 Key factors that we consider in underwriting prospective tenants and borrowers and in monitoring the performance of existing tenants include, but are not limited to, the following: ● the current, historical and projected cash flow and operating margins of each tenant and at each facility; ● the ratio of our tenants’ operating earnings both to facility rent and to facility rent plus other fixed costs, including debt costs; ● the quality and experience of the tenant and its management team; ● construction quality, condition, design and projected capital needs of the facility; ● the location of the facility; ● local economic and demographic factors and the competitive landscape of the market; ● the effect of evolving healthcare legislation and other regulations on our tenants’ profitability and liquidity; ● the payor mix of private, Medicare and Medicaid patients at the facility; and ● whether such tenants are related parties.
Accordingly, we actively monitor certain key factors, including changes in those factors that we believe may provide early indications of conditions that may affect the level of risk in our lease portfolio. 47 Key factors that we consider in underwriting prospective tenants and borrowers and in monitoring the performance of existing tenants include, but are not limited to, the following: ● the current, historical and projected cash flow and operating margins of each tenant and at each facility; ● the ratio of our tenants’ operating earnings both to facility rent and to facility rent plus other fixed costs, including debt costs; ● the quality and experience of the tenant and its management team; ● construction quality, condition, design and projected capital needs of the facility; ● the location of the facility; ● local economic and demographic factors and the competitive landscape of the market; ● the effect of evolving healthcare legislation and other regulations on our tenants’ profitability and liquidity; ● the payor mix of private, Medicare and Medicaid patients at the facility; and ● whether such tenants are related parties.
Certain business factors, in addition to those described above that directly affect our tenants, which in turn will likely materially influence our future results of operations: ● the financial and operational performance of our tenants; ● trends in the cost and availability of capital, including market interest rates, which our prospective tenants may use for their working capital financing; ● reductions in reimbursements from Medicare, state healthcare programs and commercial insurance providers that may reduce our tenants’ profitability and our lease rates; and ● competition from other financing sources. 44 Inflation We are exposed to inflation risk as income from long-term leases are a main source of our cash flows from operations.
Certain business factors, in addition to those described above that directly affect our tenants, which in turn will likely materially influence our future results of operations: ● the financial and operational performance of our tenants; ● trends in the cost and availability of capital, including market interest rates, which our prospective tenants may use for their working capital financing; ● reductions in reimbursements from Medicare, state healthcare programs and commercial insurance providers that may reduce our tenants’ profitability and our lease rates; and ● competition from other financing sources. 48 Inflation We are exposed to inflation risk as income from long-term leases are a main source of our cash flows from operations.
In December 2024, the Inc company issued an additional NIS 145.6 million ($38.1 million) in Series A Bonds. Exchange of Series D Bonds for Series A Bonds In September 2024 the Company made an exchange tender offer of outstanding Series D Bonds for Series A Bonds. The interest rate on Series D Bonds is 9.1% per annum.
In December 2024, the Company issued an additional NIS 145.6 million ($38.1 million) in Series A Bonds. Exchange of Series D Bonds for Series A Bonds In September 2024 the Company made an exchange tender offer of outstanding Series D Bonds for Series A Bonds. The interest rate on Series D Bonds is 9.1% per annum.
Since the Company was recently formed and just completed the formation transactions, certain of these critical accounting policies contain discussion of judgments and estimates that have not yet been required by management but that it believes may be reasonably required of it to make in the future. 41 Principles of Consolidation The consolidated financial statements include the accounts of our Operating Partnership and its wholly owned subsidiaries, and all material intercompany transactions and balances are eliminated in consolidation.
Since the Company was recently formed and just completed the formation transactions, certain of these critical accounting policies contain discussion of judgments and estimates that have not yet been required by management but that it believes may be reasonably required of it to make in the future. 45 Principles of Consolidation The consolidated financial statements include the accounts of our Operating Partnership and its wholly owned subsidiaries, and all material intercompany transactions and balances are eliminated in consolidation.
However, Moishe Gubin, our Chairman and Chief Executive Officer, and Michael Blisko, one of our directors, as the controlling members of 67 of our tenants and related operators, have the ability to obtain information regarding these tenants and related operators and cause the tenants and operators to take actions, including with respect to occupancy.
However, Moishe Gubin, our Chairman and Chief Executive Officer, and Michael Blisko, one of our directors, as the controlling members of 66 of our tenants and related operators, have the ability to obtain information regarding these tenants and related operators and cause the tenants and operators to take actions, including with respect to occupancy.
As of December 31, 2024 and 2023 we determined that no allowance was necessary to cover the potential loss of rent from our tenants. 42 Real Estate Investments We make estimates as part of our allocation of the purchase price of acquisitions (whether an asset acquisition acquired via purchase/leaseback or a business combination via an asset acquired from the current lessor) to the various components of the acquisition based upon the relative fair value of each component for asset acquisitions and at fair value of each component for business combinations.
As of December 31, 2025 and 2024 we determined that no allowance was necessary to cover the potential loss of rent from our tenants. 46 Real Estate Investments We make estimates as part of our allocation of the purchase price of acquisitions (whether an asset acquisition acquired via purchase/leaseback or a business combination via an asset acquired from the current lessor) to the various components of the acquisition based upon the relative fair value of each component for asset acquisitions and at fair value of each component for business combinations.
As a result, the overall average interest rate paid with respect to the HUD guaranteed loans as of December 31, 2024, was 3.91% per annum (including the mortgage insurance payments).
As a result, the overall average interest rate paid with respect to the HUD guaranteed loans as of December 31, 2025, was 3.91% per annum (including the mortgage insurance payments).
During February 2023, the BVI Company issued additional Series C Bonds in the face amount of NIS 40.0 million ($11.2 million) and raised a net amount of NIS 38.1 million ($10.7 million). These Series C Bonds were issued at a price of 95.25%.
The Series C Bonds were issued at par. During February 2023, the BVI Company issued additional Series C Bonds in the face amount of NIS 40.0 million ($11.3 million) and raised a net amount of NIS 38.1 million ($10.7 million). These Series C Bonds were issued at a price of 95.25%.
The facility provides for monthly payments of principal and interest based on a 20-year amortization with a balloon payment due in March 2027. The rate is based on the one-month Secured Overnight Financing Rate (“SOFR”) plus a margin of 3.5% and a floor 4% (as of the December 31, 2024 the rate was 7.99%).
The facility provides for monthly payments of principal and interest based on a 20-year amortization with a balloon payment due in March 2027. The rate is based on the one-month Secured Overnight Financing Rate (“SOFR”) plus a margin of 3.5% and a floor 4% (as of the December 31, 2025 the rate was 7.37%).
As of the date of this report, the aggregate annualized average base rent under the leases for our properties was approximately $134.8 million. We elect to be taxed as a REIT for U.S. federal income tax purposes commencing with our taxable year ending December 31, 2022.
As of the date of this report, the aggregate annualized average base rent under the leases for our properties was approximately $142.7 million. We elect to be taxed as a REIT for U.S. federal income tax purposes commencing with our taxable year ending December 31, 2022.
We monitor the liquidity and creditworthiness of our tenants and operators on a continuous basis to determine the need for an allowance for doubtful accounts, including an allowance for operating lease straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments.
We monitor the liquidity and creditworthiness of our tenants and operators on a continuous basis to determine the need for an allowance for credit loss, including an allowance for operating lease straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments.
We hold fee title to 119 of these properties and hold one property under a long-term lease. These properties are located in Arkansas, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas.
We hold fee title to 132 of these properties and hold one property under a long-term lease. These properties are located in Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas.
The loans have an average maturity of 22 years. 38 Commercial Bank Term Loans On March 21, 2022, the Company closed a mortgage loan facility with a commercial bank pursuant to which the Company borrowed approximately $105 million.
The loans have an average maturity of 21 years. 42 Commercial Bank Term Loans On March 21, 2022, the Company closed a mortgage loan facility with a commercial bank pursuant to which the Company borrowed approximately $105 million.
As of December 31, 2024, the Company was in compliance with the loan covenants. Outstanding Bond Debt As of December 31, 2024, the Company had outstanding Series A, Series C Bonds and Series D Bonds.
As of December 31, 2025, the Company was in compliance with the loan covenants. Outstanding Bond Debt As of December 31, 2025, the Company had outstanding Series A, Series B, Series C Bonds and Series D Bonds.
The rate and interest is based on the one-month Secured Overnight Financing Rate SOFR plus a margin of 3.0% and a floor of 4% (as of the December 31, 2024, the rate was 7.49%). As of December 31, 2024, total outstanding principal amount was $59 million. This loan is collateralized by 8 properties owned by the Company.
The rate and interest is based on the one-month Secured Overnight Financing Rate SOFR plus a margin of 3.0% and a floor of 4% (as of the December 31, 2025, the rate was 6.87%). As of December 31, 2025, total outstanding principal amount was $59 million. This loan is collateralized by 8 properties owned by the Company.
Accordingly, we intend to make, but are not contractually bound to make, regular quarterly dividends to common stockholders from cash flow from operating activities. All such dividends are at the discretion of our board of directors. As of December 31, 2024, we had cash and cash equivalents and restricted cash and equivalents of $93.7 million.
Accordingly, we intend to make, but are not contractually bound to make, regular quarterly dividends to common stockholders from cash flow from operating activities. All such dividends are at the discretion of our board of directors. As of December 31, 2025, we had cash and cash equivalents and restricted cash and equivalents of $66.8 million.
As of December 31, 2024, total outstanding principal amount was $95.1 million. This loan is collateralized by 21 properties owned by the Company. The loan proceeds were used to repay the Series B Bonds and prepay commercial loans not secured by HUD guarantees.
As of December 31, 2025, total outstanding principal amount was $61.2 million. This loan is collateralized by 21 properties owned by the Company. The loan proceeds were used to repay the Series B Bonds and prepay commercial loans not secured by HUD guarantees.
The rate is based on the one-month SOFR plus a margin of 3.5% and a floor of 4% (as of the December 31, 2024, the rate was 7.99%). As of December 31, 2024, total outstanding principal amount was $41.6 million. This loan is collateralized by 19 properties owned by the Company.
The rate is based on the one-month SOFR plus a margin of 3.5% and a floor of 4% (as of the December 31, 2024, the rate was 7.37%). As of December 31, 2025, total outstanding principal amount was $40.3 million. This loan is collateralized by 19 properties owned by the Company.
As of December 31, 2024, the Company was in compliance with the loan covenants.
As of December 31, 2025, the Company was in compliance with the loan covenants.
The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds. As a result of this offer, 47,245,161 NIS Series D Bonds ($12.7 million) were exchanged for 50,550,621 NIS Series A Bonds ($13.6 million).
The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds. As a result of this offer, NIS 47.3 million Series D Bonds ($12.7 million) were exchanged for NIS 50.6 million Series A Bonds ($13.6 million).
Net Income: The increase in net income from $20.2 million during the year ended December 31, 2023 to $26.5 million in the year ended December 31, 2024 is primarily due to increases in rental revenue (net of increase in real estate taxes), lower losses on real estate and other losses, offset by higher depreciation, amortization, general and administrative and interest expenses.
Net Income: The increase in net income from $26.5 million during the year ended December 31, 2024 to $33.3 million in the year ended December 31, 2025 is primarily due to increases in rental revenue (net of increase in real estate taxes), and is offset by higher depreciation, amortization, property taxes, general and administrative and interest expenses.
In October 2024, the BVI company issued an additional NIS 62.0 million ($16.6 million) in Series C Bonds. The bonds were issued at 99.3%. 39 As of December 31, 2023, the outstanding principal amount of the Series C Bonds was NIS 267.5 million ($73.3 million). The Series C Bonds are traded on the TASE.
In October 2024, the BVI company issued an additional NIS 62.0 million ($16.6 million) in Series C Bonds. The bonds were issued at 99.3%. 43 As of December 31, 2025, the outstanding principal amount of the Series C Bonds was NIS 247.9 million ($77.7 million). The Series C Bonds are traded on the TASE.
Series D Bonds In June 2023, the BVI Company completed an initial offering of Series D Bonds with a par value of NIS 82.9 million ($22.9 million). The Series D Bonds were issued at par.
Series D Bonds In June 2023, the BVI Company completed an initial offering of Series D Bonds with a par value of NIS 82.9 million ($22.9 million). The Series D Bonds were issued at par. During August 2023, the BVI Company issued additional Series D Bonds in the face amount of NIS 70.0 million ($19.2 million).
The Company expects to generate sufficient positive cash flow from operations to meet its ongoing debt service obligations and the distribution requirements for maintaining REIT status. 37 Cash Flows The following table presents selected data from our consolidated statements of cash flows: Years Ended December 31, 2024 2023 (dollars in thousands) Net cash provided by operating activities $ 59,330 $ 54,944 Net cash used in investing activities (136,776 ) (106,348 ) Net cash provided by financing activities 133,344 43,458 Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents 55,898 (7,946 ) Cash and cash equivalents, and restricted cash and cash equivalents beginning of year 37,758 45,704 Cash and cash equivalents and restricted cash and cash equivalents, end of year $ 93,656 $ 37,758 Net cash provided by operating activities increased $4.4 million for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily due to an increase of $6.3 million in net income and $4.5 million increase in depreciation and amortization, offset by a smaller increase in accounts payable and an increase in receivables.
The Company expects to generate sufficient positive cash flow from operations to meet its ongoing debt service obligations and the distribution requirements for maintaining REIT status. 41 Cash Flows The following table presents selected data from our consolidated statements of cash flows: Years Ended December 31, 2025 2024 (dollars in thousands) Net cash provided by operating activities $ 90,037 $ 59,330 Net cash used in investing activities (111,872 ) (136,776 ) Net cash (used in) provided by financing activities (5,063 ) 133,344 Net (decrease) increase in cash and cash equivalents and restricted cash and equivalents (26,898 ) 55,898 Cash and cash equivalents, and restricted cash and equivalents beginning of year 93,656 37,758 Cash and cash equivalents and restricted cash and equivalents, end of year $ 66,758 $ 93,656 Net cash provided by operating activities increased $30.7 million for the year ended December 31, 2025 compared to the year ended December 31, 2024, primarily due to an increase of $12.6 million increase in depreciation and amortization, a $8.7 million increase in accounts payable and accrued liabilities and other liabilities and a $6.8 million increase in net income.
These Series D Bonds were issued at a price of 106.3%. Exchange of Series D Bonds for Series A Bonds In September 2024 the Company made an exchange tender offer of outstanding Series D Bonds for Series A Bonds. The interest rate on Series D Bonds is 9.1% per annum.
Exchange of Series D Bonds for Series A Bonds In September 2024 the Company made an exchange tender offer of outstanding Series D Bonds for Series A Bonds. The interest rate on Series D Bonds is 9.1% per annum. The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds.
Summary of fixed and variable loans: December 31, 2024 2023 (Amounts in $000s) Fixed rate loans $ 475,494 $ 374,335 Variable rate loans 198,441 164,810 Gross Notes Payable and other Debt $ 673,935 $ 539,145 Funds From Operations (“FFO”) The Company believes that net income as defined by GAAP is the most appropriate earnings measure.
Summary of fixed and variable loans: December 31, 2025 2024 (Amounts in $000s) Fixed rate loans $ 634,168 $ 475,494 Variable rate loans 160,484 198,441 Gross Note Payable and other Debt $ 794,652 $ 673,935 Funds From Operations (“FFO”) The Company believes that net income as defined by GAAP is the most appropriate earnings measure.
Overview Strawberry Fields REIT, Inc. (the “Company”) is engaged in the ownership, acquisition, financing and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. As of the date of this Form 10-K, our portfolio consists of 130 healthcare facilities with an aggregate of 14,540 licensed beds.
Overview Strawberry Fields REIT, Inc. (the “Company”) is engaged in the ownership, acquisition, financing and triple-net leasing of skilled nursing facilities and other post-acute healthcare properties. As of December 31, 2025, our portfolio consists of 143 healthcare facilities with an aggregate of 15,602 licensed beds.
We also had the ability to offer additional Series A Bonds from the current outstanding of $88.5 million up to $150.8 million.
We also had the ability to offer additional Series A Bonds from the current outstanding of $94.7 million up to $172.4 million.
Through 2027 there are six balloon payment obligations consisting of three payments of $83.0 million, $68.2 million and $48.4 million due under the Series A Bonds, Series C Bonds and Series D bonds in 2026, respectively, and payments of $86.1 million, $36.6 million and $52.5 million due under our three commercial bank term loans due in 2027, 2028, and 2029.
Through 2029 there are balloon payment obligations consisting of three payments of $94.7 million, $77.7 million, and $55.1 million, due under the Series A Bonds, Series C Bonds, and Series D bonds in 2026, and $94.3 million due under Bond B in 2029, respectively, and payments of $56.1 million, $36.6 million and $52.3 million due under our three commercial bank term loans due in 2027, 2028, and 2029, respectively.
Series C Bonds In July 2021, the BVI Company completed an initial offering of Series C Bonds with a par value of NIS 208.0 million ($64.7 million). The Series C Bonds were issued at par.
In December 2025, the Company issued an additional NIS 30.0 million ($9.4 million) in Series B Bonds. At December 31, 2025, the outstanding balance of Series B Bonds was $107.2 million. Series C Bonds In July 2021, the BVI Company completed an initial offering of Series C Bonds with a par value of NIS 208.0 million ($64.4 million).
The exchange offer rate was 1.069964 Series A Bonds per Series D Bonds. As a result of this offer, 47,245,161 NIS Series D Bonds ($12.7 million) were exchanged for 50,550,621 NIS Series A Bonds ($13.6 million). As of December 31 2024, the Series D Bonds had an outstanding principal balance of approximately NIS 187.2 ($51.5 million).
As a result of this offer, 47.3 million NIS Series D Bonds ($12.7 million) were exchanged for 50.6 million NIS Series A Bonds ($13.6 million). As of December 31, 2025, the Series D Bonds had an outstanding principal balance of approximately NIS 175.8 ($55.1 million).
Cash used in investing activities increased by $30.4 million for the year ended December 31, 2024 primarily due to a $29.8 million increase in cash used for property acquisitions in real estate and lease rights. Notes receivable decrease was also $0.6 million lower than 2023.
Cash used in investing activities decreased by $24.9 million for the year ended December 31, 2025 compared December 31, 2024, primarily due to a $27.9 million decrease in cash used for property acquisitions in real estate and lease rights. This difference was offset by a net $3.0 million increase in notes receivable balances.
During August 2023, the BVI Company issued additional Series D Bonds in the face amount of NIS 70.0 million ($19.2 million) and raised a net amount of NIS 152.9 million ($42.1 million). These Series D Bonds were issued at a price of 99.7%. On February 8, 2024, the BVI Company issued additional NIS 98.2 million ($25.7 million) Series D Bonds.
These Series D Bonds were issued at a price of 99.7%. On February 8, 2024, the BVI Company issued additional NIS 98.2 million ($25.7 million) Series D Bonds. These Series D Bonds were issued at a price of 106.3%.
Series C Bonds from the current outstanding of $73.3 up to $172.7 million and the ability to offer additional Series D Bonds from the current outstanding of $51.5 million up to $123.4 million is subject to compliance with covenants and market conditions. 36 Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain our assets and operations, make distributions to our stockholders and other general business needs.
Bond B does not have a ceiling for additional issuances; however, the series is subject to compliance with covenants and market conditions. 40 Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain our assets and operations, make distributions to our stockholders and other general business needs.
We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful.
AFFO is defined as FFO excluding the impact of straight-line rent, above-/below-market leases, non-cash compensation and certain non-recurring items. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful.
As of December 31, 2024, on a consolidated basis, we had total indebtedness of approximately $673.9 million, consisting of $262.2 million in HUD guaranteed debt, $213.3 million in gross Series A, C, and D bonds outstanding and $198.4 million in commercial mortgages.
As of December 31, 2025, on a consolidated basis, we had total indebtedness of approximately $794.5 million, consisting of $254.1 million in HUD guaranteed debt, $334.7 million in gross Series A, B, C, and D bonds outstanding and $163.1 million in commercial mortgages. We also have a Note Payable with an outstanding balance of $42.6 million.
Indebtedness Mortgage Loans Guaranteed by HUD As of December 31, 2024, we had non-recourse mortgage loans of $262.2 million from third party lenders that were guaranteed by HUD. Each loan is secured by first mortgages on certain specified properties, interests in the leases for these properties and second liens on the operator’s assets.
Each loan is secured by first mortgages on certain specified properties, interests in the leases for these properties and second liens on the operator’s assets.
Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than we do. 40 The following table reconciles our calculations of FFO and AFFO for the years ended December 31, 2024 and 2023, to net income, the most directly comparable GAAP financial measure (in thousands): FFO and AFFO : Year Ended December 31, 2024 2023 Net income $ 26,505 $ 20,244 Depreciation and amortization 33,688 29,235 Funds from Operations 60,193 49,479 Adjustments to FFO : Straight-line rent (4,368 ) (30 ) Straight-line rent receivable write-off (1) - 230 Contact cancellation expense for proposed financing (2) - 1,000 Loss on real estate impairment (3) - 2,451 Foreign currency transaction gain - (462 ) Funds from Operations, as Adjusted $ 55,825 $ 52,668 (1) In 2023 the Company recognized a loss of $0.2 million due to the write-off of straight-line rent receivables related to the Southern Illinois facilities.
Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than we do. 44 The following table reconciles our calculations of FFO and AFFO for the years ended December 31, 2025 and 2024, to net income, the most directly comparable GAAP financial measure (in thousands): FFO and AFFO : Year Ended December 31, 2025 2024 Net income $ 33,306 $ 26,505 Loss from real estate disposition 12 Depreciation and amortization 46,249 33,688 Funds from Operations 79,567 60,193 Adjustments to FFO : Straight-line rent (7,102 ) (4,368 ) Funds from Operations, as Adjusted $ 72,465 $ 55,825 Dividend Plans We are required to pay dividends in order to maintain our REIT status and we expect to make quarterly dividend payments in cash with the annual dividend amount no less than 90% of our annual REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains.
As of December 31, 2024 the outstanding balance of the Series A Bonds was NIS 322.8 million ($88.5 million), given the August 2024 issuance, the September 2024 exchange of Series D bonds for Series A bonds, as well as the additional bond issuance in December 2024. The Series A Bonds are traded on the TASE.
As of December 31, 2025, the outstanding balance of Series A Bonds was NIS 302.2 million ($94.7 million) The Series A Bonds are traded on the TASE.
We are the general partner of the Operating Partnership and as of the date of the report own approximately 22.1% of the outstanding OP units. 34 Recent Developments On March 25, 2024, the Company entered into a purchase agreement for a property comprised of a 68-bed skilled nursing facility and 10 bed assisted living facility near Georgetown, Indiana.
We are the general partner of the Operating Partnership and as of the date of the report own approximately 24.0% of the outstanding OP units. 37 Significant Events in 2025 On January 1, 2025, the Company entered into a new master lease for 10 Kentucky properties formally part of the Landmark Master Lease.
The bonds are unsecured, were issued at par and have a fixed interest rate of 6.97%. Repayment of the bond principal, at 6% of the principal, was paid in 2024 and will be paid in 2025, with the remaining 88% due in 2026.
Repayment of the bond principal, at 4% of the principal, will be paid in the years 2026 through 2028, with the remaining 88% due in June 2029. Interest payments will be due semi-annually on June 30th and December 30th of the years 2025 through maturity in 2029.
The properties are leased in the Texas Master Lease 2, which includes an annual base rent of $1.5 million dollars with 3% annual rent increases and an initial term of 10 years with two options of 5 year extensions.
Base rent is $23.3 million a year and is subject to an increase based on CPI with a minimum increase of 2.50%. The initial lease term is 10 years with four 5-year extension options.
Depreciation and Amortization: Increase in depreciation of $2.8 million or 10.8% from fiscal year 2023 to fiscal year 2024 is primarily due to year over year depreciation from the Indiana 2 Master Lease and $119.8 million of new real estate investments in 2024. This was offset by other fully depreciated assets in 2024.
The increase also reflects additional reimbursed property taxes from tenants. Depreciation and Amortization: Depreciation expense increased $6.7 million, or 23.2%, compared to fiscal year 2024. The results were driven by year-over-year depreciation from new real estate investments placed into service during the 2024 and 2025. These increases were partially offset by assets that became fully depreciated in 2025.
General and Administrative Expense: The decrease in general and administrative expenses of $1.2 million or 21.0% during fiscal year 2024 compared to fiscal year 2023 is primarily the result of higher insurance, higher legal, higher corporate salaries and other expenses.
General and Administrative Expense: General and administrative expenses increased $1.8 million compared to fiscal year 2024, or 25.6%, primarily due to $1.7 million of higher payroll expenses driven by increased executive compensation and employee bonus costs. Property and Other Taxes: Property expenses increased $0.8 million year over year.
Interest expense, net: The increase in interest expense of $8.1 million or 33.4% from fiscal year 2023 to fiscal year 2024 is primarily related to larger bond balances and a second commercial bank loan facility obtained in connection with the acquisition of the Indiana Facilities.
The increase was primarily driven by $9.3 million of higher bond interest expense associated with the issuance of a new bond series, $4.5 million of additional interest expense related to a new note payable entered into during 2025, and $1.5 million of increased mortgage interest expense from a third commercial bank loan facility used to finance the acquisition of the Missouri facilities.
Removed
The Company closed on the property on May 31, 2024, for $5.83 million in an all cash transaction. The facility was leased to Infinity, a related party operator. On June 1 st , 2024, the facility was added to the IN Master Lease in the second amendment to the master lease.
Added
Also, as part of the negotiation of the new Kentucky Master Lease, the Company entered into a 5 year note payable with the parent of the Landmark tenant for $50.9 million dollars, included in Note Payable in the accompanying consolidated balance sheets. On January 2, 2025, the Company acquired 6 facilities consisting of 354 beds in Kansas.
Removed
On April 1, 2024, the Company renewed the IN Master Lease (original expiration date July 31, 2025) for 10 years with two 5 years options and added to the lease one more entity that was not part of the original lease. The base rent for the first year is $15.5 million with 3% annual escalations.
Added
The acquisition was $24.0 million and the Company funded the acquisition utilizing cash from the consolidated balance sheets. The Company formed a new master lease for an initial 10-year period that included two 5-year extension options on a triple-net basis. Additionally, the lease will increase the Company’s annual rents by $2.4 million and is subject to 3% annual increases.
Removed
On June 1, 2024, a second amendment was filed with this Master Lease to include the new property purchased in Georgetown, Indiana. On April 30, 2024, the company sold a property 107 South Lincoln Street to The Village of Smithton, a municipality in Illinois and paid off the existing mortgage. The building was sold to the municipality for $1.
Added
On March 31, 2025, the Company acquired a skilled nursing facility with 100 licensed beds near Oklahoma City, Oklahoma. The acquisition was $5.0 million and was funded utilizing cash from the consolidated balance sheets. The initial term of the lease is 10 years and includes two 5-year extension options.
Removed
The Company paid $1.2 million in related debt and closing fees for this transaction. On July 12, 2024, the Company filed a Registration Statement on Form S-3 with the Securities and Exchange Commission (“SEC”). On August 1, 2024, the SEC declared the Registration Statement effective.
Added
Base rent for the property is $0.5 million dollars annually and is subject to 3% annual increases. On April 4, 2025, the Company completed the acquisition for a skilled nursing facility with 112 licensed beds near Houston, Texas. The acquisition was for $11.5 million and was funded utilizing cash from the consolidated balance sheets.
Removed
In connection with the Registration Statement the Company established an at-the-market equity program (the “ATM Program”). The ATM Program will allow the Company to issue and sell to the public from time to time, at the Company’s discretion, newly issued shares of common stock.
Added
The Company funded the acquisition utilizing cash from the consolidated balance sheets. The facility was leased to an existing third party operator and added to their Master Lease (Texas Master Lease 2). The initial annual base rents are $1.3 million dollars and subject to 3% annual rent increases.
Removed
The ATM Program is expected to provide the Company with additional financing flexibility and intends to use the net proceeds from the ATM Program to increase stock liquidity and facilitate growth. On August 5, 2024, the Company issued 145.6 million NIS in Series A Bonds on the Tel Aviv stock exchange (“TASE”), which is approximately $37.1 million.
Added
On June 24, 2025, the Company issued 312.0 million NIS in Series B Bonds on the TASE, which is approximately $89.5 million. The bonds are unsecured, were issued at par and have a fixed interest rate of 6.70%.
Removed
Interest payments will be due concurrent with the principal payments on September 30th of the years 2024, 2025 and 2026. In addition, the investors in Series D bond were offered to exchange their holdings with certificates of Series A bonds at a conversion rate of 1.069964 bond A for each certificate of bond D.
Added
On July 1, 2025, the Company completed the acquisition of nine skilled nursing facilities, comprised of 686 beds, located in Missouri. The acquisition was for $59 million and the Company funded the acquisition utilizing cash from the consolidated balance sheets.
Removed
In September 2024, 47.2 million NIS ($12.7 million USD) Series D bonds have been exchanged for 50.6 million NIS ($13.6 million) Series A bonds. On August 30, 2024, the Company completed the acquisition for two skilled nursing facilities with 254 licensed beds near San Antonio, Texas. The acquisition was for $15.25 million.
Added
Eight of the facilities were leased to the Tide Group and were added to the master lease the Company entered into in August 2024. This acquisition increased Tide Group’s annual rents by $5.5 million. These properties are subject to an annual rent increase of 3% and the initial term is 10 years.
Removed
The Company funded the acquisition utilizing cash from the balance sheet. The facilities are leased to the Tide Health Group, a 3 rd party operator.
Added
The ninth facility was leased to an affiliate of Reliant Care Group L.L.C. The facility was added to the master lease the Company assumed in December 2024 and increased Reliant Care Group’s annual rents by $0.6 million.
Removed
On September 25, 2024, the Company completed the acquisition of a property comprised of an 83-bed skilled nursing facility and 25 bed assisted living facility near Nashville, Tennessee.
Added
On July 1, 2025, the Company sold Chalet of Niles, a property in Michigan that was formally part of the Landmark Master Lease, to a third-party purchaser. The property sold for $2.7 million dollars. A loss of $0.01 million dollars resulted from this sale. The buyer received financing from the Company for the acquisition.
Removed
The acquisition was for $6.7 million and the Company funded the acquisition by assuming $2.8 million of existing debt on the facilities, $3.1 million in common stock to the seller, and transferring $0.8 million of other assets to the seller. The property was leased to Infinity, a related party operator.
Added
The financing was $2.4 million for three years and is interest only, with an annual interest rate of 10%. The financing has a balloon payment at the end of year three. On August 5, 2025, the Company completed the acquisition for a skilled nursing facility with 80 licensed beds near McLoud, Oklahoma. The acquisition was for $4.25 million.
Removed
The property annual rent is $670 thousand dollars and the property was added to the Tennessee Master Lease 1. On October 8, 2024, the Company entered into a Purchase and Sale Agreement with an unaffiliated seller with respect to eight healthcare facilities located in Missouri. The purchase price for the facilities was $87,500,000, payable at the closing.
Added
The Company funded the acquisition utilizing cash from the consolidated balance sheets. The initial annual base rents are $0.4 million dollars and subject to 3% annual rent increases. The initial term is 10 years and includes two 5-year extension options.
Removed
The facilities are currently leased under a master lease agreement to a group of third-party tenants. Under the master lease, the tenants currently pay annual rent on a triple net basis. The eight facilities are comprised of 1,111 licensed beds. The Company purchased the facilities utilizing cash from the balance sheet and funds provided by a third-party lender.
Added
On August 29, 2025, the Company completed the acquisition for a healthcare facility comprised of 108 skilled nursing beds and 16 assisted living beds near Poplar Bluff, Missouri. The acquisition was for $5.3 million. The Company funded the acquisition utilizing cash from the consolidated balance sheets.
Removed
The Company closed the acquisition on December 20, 2024. On October 11, 2024 the Company acquired an 86-bed skilled nursing facility in Indianapolis, Indiana. The acquisition was for $6.0 million and the Company funded the acquisition utilizing cash from its balance sheet. The facility was added to an existing master lease with Infinity of Indiana.
Added
The initial annual base rents are $0.5 million dollars and subject to 3% annual rent increases. The property was assumed by the Reliant Care master lease and is subject to the terms of the master lease. 38 On November 4, 2025, the Company completed the acquisition for a skilled nursing facility with 60 licensed beds near Grove, Oklahoma.
Removed
On October 14, 2024, the BVI Company issued additional Series C bonds with a par value of NIS 62.0 million ($16.6 million). The bonds were issued at a price of 99.3% to par.
Added
The acquisition was for $3.0 million. The Company funded the acquisition utilizing cash from the consolidated balance sheet. The initial annual base rents are $0.3 million dollars and subject to 3% annual rent increases.
Removed
On December 5, 2024, priced an underwritten public offering of 3,333,334 shares of its common stock for total gross proceeds (before underwriters’ discounts and commissions and offering expenses) of approximately $35 million. On December 20, 2024, the Company entered into an Asset Purchase Agreement with an unaffiliated seller for the purchase of six healthcare Facilities located in Kansas.
Added
The year-over-year growth was primarily driven by $13.1 million in additional revenue associated with the re-tenanting of the Landmark and Kentucky Master Lease, as well as contributions from recent property acquisitions completed in 2024 and 2025. These acquisitions included the Missouri lease ($10.3 million), the Tide Group Master Lease ($5.5 million), and the Kansas Master Lease ($2.4 million).
Removed
The purchase price for the Facilities was $24,000,000, payable at the closing. The Facilities will be leased under a new 10-year master lease agreement to a group of third-party tenants. Under the master lease, (i) the tenants will be on a triple net basis (ii) the tenants have 2 five-year options to extend the lease.
Added
Amortization expense increased $5.8 million, or 124.9%, primarily due to the amortization of an asset associated with the note payable related to the re-tenanting of the properties under the Kentucky Master Lease.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
3 edited+0 added−0 removed5 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
3 edited+0 added−0 removed5 unchanged
2024 filing
2025 filing
Biggest changeAs of December 31, 2024, we had $88.5 million in Series A Bonds which bear interest at a fixed rate of 6.97%, $73.3 million outstanding under our Series C Bonds, which bear interest at a fixed rate of 5.7% per annum, $51.5 million outstanding under our Series D Bonds, which bear interest at a fixed rate of 9.1% per annum, and $460.6 million in senior debt notes, of which $195.7 million (29.03% of total debt) bear interest at variable rate equal to one month SOFR plus a margin.
Biggest changeAs of December 31, 2025, we had $94.7 million in Series A Bonds which bear interest at a fixed rate of 6.97%, $107.2 million in Series B Bonds which bear interest at a fixed rate of 6.70%, $77.7 million outstanding under our Series C Bonds, which bear interest at a fixed rate of 5.7% per annum, $55.1 million outstanding under our Series D Bonds, which bear interest at a fixed rate of 9.1% per annum, and $417.3 million in senior debt notes, of which $160.5 million (20.20% of total debt) bear interest at variable rate equal to one month SOFR plus a margin.
Financial Statements and Supplementary Data See the Index to Consolidated Financial Statements on page F-1 of this report. 45 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures None.
Financial Statements and Supplementary Data See the Index to Consolidated Financial Statements on page F-1 of this report. 49 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures None.
At December 31, 2024, one month SOFR was 4.49%. Assuming no increase in the amount of our variable interest rate debt, if one-month SOFR increased 100 basis points, our annual cash flow would decrease by approximately $2.0 million.
At December 31, 2025, one month SOFR was 3.87%. Assuming no increase in the amount of our variable interest rate debt, if one-month SOFR increased 100 basis points, our annual cash flow would decrease by approximately $1.6 million.