Item 2. Properties
Item 2. Properties.
As of December 31, 2022, our principal executive offices are located at 18191 Von Karman Avenue, Suite 300, Irvine, California 92612. As of December 31, 2022, we also leased office and building space in Arizona. We believe our existing leased facilities are in good condition and suitable for the conduct of our business.
Real Estate Investments
As of December 31, 2022, we operated through six reportable business segments: integrated senior health campuses, MOBs, SNFs, SHOP, senior housing — leased and hospitals. We own and/or operate 100% of our properties as of December 31, 2022, with the exception of our investments through Trilogy, or Trilogy Portfolio, Lakeview IN Medical Plaza, Southlake TX Hospital, Central Florida Senior Housing Portfolio, Pinnacle Beaumont ALF, Pinnacle Warrenton ALF and Louisiana Senior Housing Portfolio. See Note 13, Redeemable Noncontrolling Interests, and Note 14, Equity — Noncontrolling Interests in Total Equity, to the Consolidated Financial Statements that are part of this Annual Report on Form 10-K, for a further discussion of our noncontrolling interests. The following table presents certain additional information about our real estate investments as of December 31, 2022:
Reportable Segment Number of
Buildings/
Campuses GLA
(Sq Ft) % of
GLA Aggregate
Contract
Purchase Price Annualized
Base
Rent/NOI(1) % of
Annualized
Base Rent/NOI Leased
Percentage(2)
Integrated senior health campuses 120 9,089,000 45.7 % $ 1,898,591,000 $ 152,652,000 46.8 % 84.5 %
MOBs 104 4,964,000 24.9 1,369,596,000 108,862,000 33.4 89.0 %
SHOP 51 3,856,000 19.4 787,797,000 19,535,000 6.0 77.0 %
Senior housing — leased
20 673,000 3.4 179,285,000 12,149,000 3.7 100 %
SNFs 17 1,142,000 5.7 249,200,000 24,009,000 7.3 100 %
Hospitals 2 173,000 0.9 139,780,000 9,181,000 2.8 100 %
Total/weighted average(3) 314 19,897,000 100 % $ 4,624,249,000 $ 326,388,000 100 % 92.2 %
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(1) With the exception of our SHOP and integrated senior health campuses, amount is based on annualized contractual base rent from leases as of December 31, 2022. For our SHOP and integrated senior health campuses, amount is based on annualized NOI, a non-GAAP financial measure, due to the characteristics of the RIDEA structure. See Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations — Net Operating Income, for a further discussion of NOI.
(2) Leased percentage includes all third-party leased space at our non-RIDEA properties (including master leases), and excludes our SHOP and integrated senior health campuses where leased percentage represents resident occupancy on the available units/beds therein.
(3) Total portfolio weighted average leased percentage excludes our SHOP and integrated senior health campuses.
We own fee simple interests in all of our land, buildings and campuses except for 17 MOBs and seven integrated senior health campuses, for which we own fee simple interests in the buildings and other improvements on such properties subject to the respective ground leases and for 21 integrated senior health campuses that were leased to Trilogy Portfolio by third parties.
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The following information generally applies to our properties:
• we believe all of our properties are adequately covered by insurance and are suitable for their intended purposes;
• we have no plans for any material renovations, improvements or development with respect to any of our properties, except in accordance with planned budgets and within our Trilogy Portfolio;
• our properties are located in markets where we are subject to competition for attracting new tenants and residents, as well as retaining current tenants and residents; and
• depreciation is provided on a straight-line basis over the estimated useful lives of the buildings and capital improvements, up to 39 years, over the shorter of the lease term or useful lives of the tenant improvements, up to 34 years, and over the estimated useful life of furniture, fixtures and equipment, up to 28 years.
For additional information regarding our real estate investments, see Schedule III, Real Estate and Accumulated Depreciation, to the Consolidated Financial Statements that are a part of this Annual Report on Form 10-K.
Lease Expirations
Substantially all of our leases with residents at our SHOP and integrated senior health campuses are for a term of one year or less. The following table presents the sensitivity of our annual base rent due to lease expirations for the next 10 years and thereafter at our properties as of December 31, 2022, excluding our SHOP and integrated senior health campuses:
Year Number of
Expiring
Leases Total Square
Feet of Expiring
Leases % of GLA
Represented by
Expiring Leases Annual Base Rent
of Expiring Leases(1) % of Total
Annual Base Rent
Represented by
Expiring Leases
2023 134 497,000 7.7 % $ 12,098,000 6.8 %
2024 93 526,000 8.2 12,301,000 6.9
2025 93 677,000 10.5 17,963,000 10.0
2026 58 263,000 4.1 6,084,000 3.4
2027 67 424,000 6.6 11,408,000 6.4
2028 44 523,000 8.1 15,483,000 8.7
2029 39 385,000 6.0 11,001,000 6.1
2030 33 417,000 6.5 14,106,000 7.9
2031 15 281,000 4.4 6,958,000 3.9
2032 28 649,000 10.1 18,774,000 10.5
Thereafter 48 1,787,000 27.8 52,504,000 29.4
Total 652 6,429,000 100 % $ 178,680,000 100 %
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(1) Amount is based on the total annual contractual base rent expiring in the applicable year, based on leases as of December 31, 2022.
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Geographic Diversification/Concentration Table
The following table lists our property locations and provides certain information regarding our portfolio’s geographic diversification/concentration as of December 31, 2022:
State Number of
Buildings/
Campuses GLA (Sq Ft) % of GLA Annualized Base
Rent/NOI(1) % of Annualized
Base Rent/NOI
Alabama 5 290,000 1.5 % $ 4,948,000 1.5 %
Arizona 1 34,000 0.2 848,000 0.3
Arkansas 1 51,000 0.3 448,000 0.1
California 9 333,000 1.7 3,595,000 1.1
Colorado 6 287,000 1.4 6,673,000 2.0
Connecticut 6 187,000 0.9 3,892,000 1.2
District of Columbia 1 134,000 0.7 4,861,000 1.5
Florida 8 715,000 3.5 907,000 0.3
Georgia 16 494,000 2.5 10,323,000 3.2
Iowa 1 38,000 0.2 584,000 0.2
Illinois 13 411,000 2.1 7,201,000 2.2
Indiana 74 5,208,000 26.2 118,131,000 36.2
Kansas 2 116,000 0.5 3,044,000 0.9
Kentucky 14 1,377,000 6.9 (2,686,000) (0.8)
Louisiana 7 257,000 1.3 1,625,000 0.5
Maryland 1 77,000 0.4 1,687,000 0.5
Massachusetts 7 513,000 2.5 12,999,000 4.0
Michigan 27 1,588,000 8.0 27,995,000 8.6
Minnesota 1 46,000 0.2 1,075,000 0.3
Mississippi 2 76,000 0.4 626,000 0.2
Missouri 12 769,000 3.9 15,710,000 4.8
Nebraska 2 282,000 1.4 1,882,000 0.6
Nevada 1 191,000 1.0 4,819,000 1.6
New Jersey 5 327,000 1.6 8,278,000 2.5
New York 1 91,000 0.5 2,970,000 0.9
North Carolina 8 330,000 1.7 5,279,000 1.6
Ohio 33 2,534,000 12.7 25,045,000 7.7
Oregon 1 62,000 0.3 1,709,000 0.5
Pennsylvania 9 592,000 3.0 13,797,000 4.2
South Carolina 1 59,000 0.3 1,671,000 0.5
Tennessee 1 46,000 0.2 605,000 0.2
Texas 23 1,466,000 7.4 22,323,000 6.8
Utah 1 66,000 0.3 (1,682,000) (0.6)
Virginia 2 284,000 1.4 4,684,000 1.4
Washington 2 77,000 0.4 2,158,000 0.7
Wisconsin 4 334,000 1.7 3,897,000 1.2
Total Domestic 308 19,742,000 99.2 321,921,000 98.6
Isle of Man and UK 6 155,000 0.8 4,467,000 1.4
Total 314 19,897,000 100 % $ 326,388,000 100 %
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(1) Amount is based on contractual base rent from leases as of December 31, 2022, with the exception of our SHOP and integrated senior health campuses, which amount is based on annualized NOI due to the characteristics of the RIDEA structure. See Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations — Net Operating Income, for a further discussion of NOI.
Indebtedness
For a discussion of our indebtedness, see Note 8, Mortgage Loans Payable, Net, and Note 9, Lines of Credit and Term Loans, to the Consolidated Financial Statements that are a part of this Annual Report on Form 10-K.
Item 3. Legal Proceedings.
For a discussion of our legal proceedings, see Note 12, Commitments and Contingencies — Litigation, to the Consolidated Financial Statements that are a part of this Annual Report on Form 10-K.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II