What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-02-12 compared with 2025-02-12 · 1289 added, 848 removed, 1212 unchanged (64% of the section changed)

4 unchanged sentences

As of December 31, 2025, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, regarding the effectiveness of our disclosure controls and procedures.

As previously disclosed, on May 8, 2025, we completed the Care REIT Acquisition.

As such, the scope of our assessment of the effectiveness of our disclosure controls and procedures did not include the internal control over financial reporting of Care REIT.

These exclusions are consistent with the SEC Staff’s guidance that an assessment of a recently acquired business may be omitted from the scope of our assessment of the effectiveness of disclosure controls and procedures that are also part of internal control over financial reporting in the 12 months following the acquisition.

Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2025.

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Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

The Company’s assessment of internal control over financial reporting did not include an assessment of the internal control over financial reporting of Care REIT.

The amount of total assets and revenue of Care REIT included in our consolidated financial statements as of and for the year ended December 31, 2025 was $954.5 million and $54.7 million, respectively.

Changes in Internal Control over Financial Reporting

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We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated February 12, 2026, expressed an unqualified opinion on those financial statements.

As described in Management’s Annual Report on Internal Control over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Care REIT plc, which was acquired on May 8, 2025, and whose financial statements constitute 18.5% of total assets and 11.5% of total revenues of the consolidated financial statement amounts as of and for the year ended December 31, 2025.

Accordingly, our audit did not include the internal control over financial reporting at Care REIT plc.

Basis for Opinion

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We have adopted a code of business conduct and ethics that applies to all employees, including employees of our subsidiaries, as well as each member of our Board of Directors.

The code of business conduct and ethics is available at our website at www.caretrustreit.com under the Investors-Governance section.

The code of business conduct and ethics is available at our website at www.caretrustreit.com under the Investor Relations-Governance section.

We intend to satisfy any disclosure requirement under applicable rules of the Securities and Exchange Commission or the New York Stock Exchange regarding an amendment to, or waiver from, a provision of this code of business conduct and ethics by posting such information on our website, at the address specified above.

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(a)(3) Exhibits

Rule 2.7 Announcement, dated March 11, 2025 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed on March 11, 2025).

Articles of Amendment and Restatement of CareTrust REIT, Inc.

3 unchanged sentences

Amended and Restated Bylaws of CareTrust REIT, Inc.

(incorporated by reference to Exhibit 3.1 to CareTrust REIT, Inc.’s Current Report on Form 8-K filed on March 7, 2019).

(incorporated by reference to Exhibit 3.1 to CareTrust REIT, Inc.’s Current Report on Form 8-K filed on October 27, 2025).

Indenture, dated as of June 17, 2021, among CTR Partnership, L.P.

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(incorporated by reference to Exhibit 4.1 to CareTrust REIT, Inc.’s Registration Statement on Form 10, filed on April 15, 2014).

Description of CareTrust REIT, Inc.’s Capital Stock (incorporated by reference to Exhibit 4.5 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 20, 2020).

Description of CareTrust REIT, Inc.’s Capital Stock

Form of Master Lease by and among certain subsidiaries of The Ensign Group, Inc.

3 unchanged sentences

in favor of certain subsidiaries of CareTrust REIT, Inc., as landlords under the Ensign Master Leases (incorporated by reference to Exhibit 10.2 to CareTrust REIT, Inc.’s Current Report on Form 8-K, filed on June 5, 2014).

Tax Matters Agreement, dated as of May 30, 2014, by and between The Ensign Group, Inc.

and CareTrust REIT, Inc.

(incorporated by reference to Exhibit 10.5 to CareTrust REIT, Inc.’s Current Report on Form 8-K, filed on June 5, 2014).

Amended and Restated Partnership Agreement of CTR Partnership, L.P.

(incorporated by reference to Exhibit 3.4 to CareTrust REIT, Inc.’s Registration Statement on Form S-4, filed on August 28, 2014).

Second Amended and Restated Agreement of Limited Partnership of CTR Partnership, L.P., dated as of December 11, 2025.

Form of Indemnification Agreement between CareTrust REIT, Inc.

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Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.14 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 11, 2015).

Form of Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.15 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 11, 2015).

Form of TSR Award Agreement (incorporated by reference to Exhibit 10.10 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 9, 2023)

Form of Performance-Based Restricted Stock Award Grant Notice (incorporated by reference to Exhibit 10.11 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 9, 2023)

Form of Change in Control and Severance Agreement (incorporated by reference to Exhibit 10.1 to CareTrust REIT, Inc’s Current Report on Form 8-K filed on February 11, 2019).

Form of Amendment to Change in Control and Severance Agreement (incorporated by reference to Exhibit 10.1 to CareTrust REIT, Inc.'s Quarterly Report on Form 10-Q, filed on May 10, 2023)

Form of Restricted Stock Unit Agreement (for awards before December 2025) (incorporated by reference to Exhibit 10.15 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 11, 2015).

Form of TSR Award Agreement (for awards before December 2025) (incorporated by reference to Exhibit 10.10 to CareTrust REIT, Inc.’s Annual Report on Form 10-K, filed on February 9, 2023)

Form of Time-Based Restricted Stock Unit Award Agreement

Form of TSR Restricted Stock Unit Award Agreement

Form of Basic LTIP Unit Award Agreement

Form of Performance LTIP Unit Award Agreement (Relative Total Shareholder Return).

Form of Change in Control and Severance Agreement (Executives) .

Third Amended and Restated Credit and Guaranty Agreement, dated as of December 18, 2024, by and among CTR Partnership, L.P., as borrower, CareTrust REIT, Inc., as guarantor, CareTrust GP, LLC and the other guarantors named therein and KeyBank National Association, as administrative agent, an issuing lender and swingline lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to CareTrust REIT.

Inc.’s Current Report on Form 8-K, filed on December 19, 2024).

Asset Purchase Agreement, dated October 21, 2024.

First Amendment to Third Amended and Restated Credit and Guaranty Agreement, dated as of May 30, 2025, by and among CTR Partnership, L.P., as borrower, CareTrust REIT, Inc., as guarantor, CareTrust GP, LLC and the other guarantors named therein and KeyBank National Association, as administrative agent, an issuing lender and swingline lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on June 2, 2025).

Second Amendment to Third Amended and Restated Credit and Guaranty Agreement, dated as of January 14, 2026, by and among CTR Partnership, L.P., as borrower, CareTrust REIT, Inc., as guarantor, CareTrust GP, LLC and the other guarantors named therein and KeyBank National Association, as administrative agent, an issuing lender and swingline lender and the other parties thereto.

Asset Purchase Agreement, dated October 21, 2024 (incorporated by reference to Exhibit 10.14 to CareTrust REIT Inc.’s Annual Report on Form 10-K, filed on February 12, 2025).

Equity Distribution Agreement, dated January 21, 2025, by and among CareTrust REIT, Inc., CTR Partnership, L.P.

and (i) BMO Capital Markets Corp., BofA Securities, Inc., Huntington Securities, Inc., Jefferies LLC, J.P.

Morgan Securities LLC, KeyBanc Capital Markets Inc., M&T Securities, Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, Robert W.

Incorporated and Wells Fargo Securities, LLC and (ii) Bank of Montreal, Bank of America, N.A., Huntington Securities, Inc., Jefferies LLC, JPMorgan Chase Bank, National Association, KeyBanc Capital Markets Inc., Raymond James & Associates, Inc., Royal Bank of Canada, Robert W.

Incorporated and Wells Fargo Bank, National Association, including the form of master forward sale agreement included as Annex A thereto (incorporated by reference to Exhibit 1.1 to the Company's Current Report on Form 8-K, filed on January 21, 2025).

CareTrust REIT, Inc.

Policy on Insider Trading

Policy on Insider Trading (incorporated by reference to Exhibit 19.1 to CareTrust REIT Inc.’s Annual Report on Form 10-K, filed on February 12, 2025).

List of Subsidiaries of CareTrust REIT, Inc.

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SEDGWICK President and Chief Executive Officer (Principal Executive Officer) February 12, 2026

/s/ WILLIAM M.

WAGNER Chief Financial Officer and Treasurer (Principal Financial Officer) February 12, 2025

/s/ DEREK BUNKER Chief Financial Officer and Treasurer (Principal Financial Officer) February 12, 2026

/s/ LAUREN BEALE Chief Accounting Officer (Principal Accounting Officer) February 12, 2026

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Spencer Plumb

/s/ GREGORY K.

STAPLEY Director February 12, 2026

/s/ CAREINA WILLIAMS Director February 12, 2026

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Consolidated Balance Sheets as of December 31, 2025 and 2024

Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022

Consolidated Statements of Equity and Redeemable Noncontrolling Interest for the years ended December 31, 2024, 2023 and 2022

Consolidated Income Statements for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Equity and Redeemable Noncontrolling Interests for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023

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We have audited the accompanying consolidated balance sheets of CareTrust REIT, Inc.

and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, equity and redeemable noncontrolling interest, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated income statements, statements of comprehensive income, equity and redeemable noncontrolling interests, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

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The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment of Real Estate Investments, Assets Held for Sale, Net and Asset Sales — Refer to Notes 2 and 4 to the financial statements

Real Estate Investments, Net, Impairment of Real Estate Investments Held for Investment—Refer to Notes 2, 4, and 5 to the financial statements

Critical Audit Matter Description

The Company classifies its real estate investments as held for sale when the applicable criteria have been met, which includes a formal plan to sell the properties that is expected to be completed within one year, among other criteria.

Upon designation as held for sale, the Company writes down the excess of the carrying value over the estimated fair value less costs to sell, resulting in an impairment of the real estate investments, if necessary.

The fair value of the assets held for sale is based on a market approach using estimated sales prices (comparable sales model), which relies on certain assumptions by management, including:

(i) comparable market transactions, (ii) estimated prices per unit, and (iii) binding agreements for sales and non-binding offers to purchase from unrelated third-parties.

There are inherent uncertainties in making these assumptions.

We identified the impairment of real estate investments held for sale as a critical audit matter because of the significant estimates and assumptions management makes to determine the fair value of real estate investments held for sale.

This required

a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s estimate of fair value.

As of December 31, 2024, the Company had real estate investments held for sale of $57.3 million.

For the year ended December 31, 2024, the Company recognized impairment charges of $37.3 million related to real estate investments held for sale.

The Company evaluates its real estate investments held for investment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

If indicators of impairment are present, the Company evaluates the carrying value of the related real estate investments in relation to the future undiscounted cash flows of the underlying properties.

Provisions for impairment losses related to real estate investments held for investment are recognized when expected future undiscounted cash flows are determined to be less than the carrying values of the assets.

The impairment is measured as the excess of carrying value over fair value.

All impairments are taken as a period cost at that time, and depreciation is adjusted going forward to reflect the new value assigned to the asset.

During the year ended December 31, 2025, the Company recognized an impairment charge of $2.0 million on real estate investments held for investment.

Given the Company’s evaluation of the recoverability of real estate investments held for investment requires management to make significant estimates and assumptions related to projected property level financial results, lease coverage ratios, intended hold periods, and terminal capitalization rates, performing audit procedures to evaluate the reasonableness of management’s

undiscounted future cash flow analysis, including an assessment of expected remaining holding period, required a high degree of auditor judgment and an increased extent of effort.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the significant inputs to the fair value of real estate investments held for sale included the following, among others:

• We tested the effectiveness of controls over management’s determination of fair value for real estate investments held for sale.

• We assessed the reasonableness of the valuation methodology used and the concluded real estate investment fair value by obtaining sales comparison data.

• We used the assistance of our fair value specialists in obtaining relevant market data, where necessary.

• We considered the properties disposed in the period and subsequent period to evaluate if the retrospective review provides any indication of error or bias in the fair value estimates.

• We read and considered terms of executed arrangements and evidence regarding terms for arrangements in the process of negotiation at or near the valuation date.

• We held discussions with management to understand individual real estate investment specific factors that impacted the Company’s fair value determination.

Our audit procedures to evaluate management’s estimated holding period of an asset and to evaluate the assumptions used in undiscounted cash flows included the following, among others:

• We tested the effectiveness of controls over management’s evaluation of impairment of real estate investments, including controls over identification of possible events that could indicate that real estate investments are impaired and evaluation of projected property level financial results, lease coverage ratios, intended hold periods, and terminal capitalization rates.

• We evaluated the reasonableness of management’s conclusions regarding assumptions used in estimating undiscounted cash flows by testing the source information underlying the determination of the projected property level financial results, lease coverage ratios, and terminal capitalization rates, and developing a range of independent estimates based on external market sources and comparing our estimates to the assumptions utilized by management, and testing the mathematical accuracy of the calculations.

• Discussed with management the assumptions used in the Company’s undiscounted cash flow models, including the hold period, and evaluated the consistency of the assumptions used with evidence obtained in other areas of the audit, including Board of Directors meeting minutes.

• We considered the properties disposed in the period and subsequent period to evaluate if the retrospective review provides any indication of error or bias in the estimated hold period.

/s/ Deloitte & Touche LLP

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Real estate investments, net $ 3,709,576 $ 2,226,740

Financing receivable, at fair value (including accrued interest of $ 281 as of December 31, 2024)

Other real estate related investments (including accrued interest of $ 4,725 and $ 1,727 as of December 31, 2024 and 2023, respectively)

Financing receivable, at fair value (including accrued interest of $ 913 and $ 281 as of December 31, 2025 and 2024, respectively)

92,193 96,004

Other real estate related investments, net (including accrued interest of $ 5,759 and $ 4,725 as of December 31, 2025 and 2024, respectively)

899,262 795,203

Assets held for sale, net — 57,261

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Commitments and contingencies (Note 16)

Redeemable noncontrolling interest 18,243 —

Redeemable noncontrolling interests 18,156 18,243

Preferred stock, $ 0.01 par value;

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Cumulative distributions in excess of earnings ( 491,796 ) ( 532,570 )

Accumulated other comprehensive income 5,872 —

Total stockholders' equity 4,035,280 2,908,417

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CARETRUST REIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share amounts)

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Rental income $ 368,194 $ 228,261 $ 198,599

Resident fees and services 1,225 — —

Interest income from financing receivable 11,492 1,009 —

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Interest expense 43,707 30,310 40,883

Property taxes 7,838 6,170 4,333

Property taxes and insurance 8,768 7,838 6,170

Senior housing operating expenses 952 — —

Impairment of real estate investments 2,483 42,225 36,301

Transaction costs 5,329 1,326 —

Provision for loan losses, net 4,900 — 3,844

Property operating expenses 5,714 3,423 5,039

Provision for loan losses — 4,900 —

Property operating (recoveries) expenses ( 138 ) 5,714 3,423

General and administrative 52,465 28,923 21,805

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Other income (loss):

Other income, net 4,350 — —

Loss on extinguishment of debt ( 390 ) ( 657 ) —

(Loss) gain on sale of real estate, net ( 2,208 ) 2,218 ( 3,769 )

Gain (loss) on sale of real estate, net 31,548 ( 2,208 ) 2,218

Unrealized gain (loss) on other real estate related investments, net 15,831 9,045 ( 6,485 )

Gain on foreign currency transactions, net 4,012 — —

Total other income (loss) 55,351 6,180 ( 4,267 )

Net income (loss) 124,399 53,722 ( 7,506 )

Income before income tax expense 325,287 124,399 53,722

Income tax expense ( 5,001 ) — —

Net income 320,286 124,399 53,722

Net loss attributable to noncontrolling interests ( 252 ) ( 681 ) ( 13 )

Net income (loss) attributable to CareTrust REIT, Inc.

Net income attributable to CareTrust REIT, Inc.

$ 320,538 $ 125,080 $ 53,735

Earnings (loss) per common share attributable to CareTrust REIT, Inc:

Earnings per common share attributable to CareTrust REIT, Inc:

Basic $ 1.57 $ 0.81 $ 0.50

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CARETRUST REIT, INC.

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

Year Ended December 31,

2025 2024 2023

Net income $ 320,286 $ 124,399 $ 53,722

Other comprehensive income (loss):

Foreign currency translation 9,092 — —

Cash flow hedges ( 3,220 ) — —

Total other comprehensive income 5,872 — —

Total comprehensive income 326,158 124,399 53,722

Total comprehensive loss attributable to noncontrolling interests ( 252 ) ( 681 ) ( 13 )

Comprehensive income attributable to CareTrust REIT, Inc.

$ 326,410 $ 125,080 $ 53,735

See accompanying notes to consolidated financial statements.

CARETRUST REIT, INC.

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

(in thousands, except share and per share amounts)

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Distributions

of Earnings Total Stockholders’ Equity Noncontrolling Interests Total

Equity Redeemable Noncontrolling Interest

of Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Noncontrolling Interests Total

Equity Redeemable Noncontrolling Interests

Shares Amount

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— — — ( 124,409 ) — ( 124,409 ) — ( 124,409 ) —

Net loss — — — ( 7,506 ) ( 7,506 ) — ( 7,506 ) —

Distributions to noncontrolling interests — — — — — — ( 41 ) ( 41 ) —

Contributions from noncontrolling interests — — — — — — 1,952 1,952 —

Net income (loss) — — — 53,735 — 53,735 ( 13 ) 53,722 —

Balance as of December 31, 2023 129,992,796 1,300 1,883,147 ( 467,628 ) — 1,416,819 1,898 1,418,717 —

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Net income (loss) — — — 320,538 — 320,538 782 321,320 ( 1,034 )

Balance as of December 31, 2024 186,993,010 $ 1,870 $ 3,439,117 $ ( 532,570 ) $ 2,908,417 $ 2,723 $ 2,911,140 $ 18,243

Other comprehensive income — — — — 5,872 5,872 — 5,872 —

Balance at December 31, 2025 222,746,343 $ 2,227 $ 4,518,977 $ ( 491,796 ) $ 5,872 $ 4,035,280 $ 5,532 $ 4,040,812 $ 18,156

See accompanying notes to consolidated financial statements.

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Cash flows from operating activities:

Net income (loss) $ 124,399 $ 53,722 $ ( 7,506 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net income $ 320,286 $ 124,399 $ 53,722

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization (including below-market ground leases) 93,045 56,932 51,257

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Amortization of lease incentives 193 22 —

Amortization of below market leases ( 2,885 ) ( 384 ) —

Adjustment for collectibility of rental income — — 1,417

Amortization of above and below market leases ( 6,798 ) ( 2,885 ) ( 384 )

Noncash interest income ( 1,549 ) ( 3,279 ) ( 407 )

Loss (gain) on sale of real estate, net 2,208 ( 2,218 ) 3,769

(Gain) loss on sale of real estate, net ( 31,548 ) 2,208 ( 2,218 )

Impairment of real estate investments 2,483 42,225 36,301

Provision for loan losses, net 4,900 — 3,844

Provision for loan losses — 4,900 —

Change in operating assets and liabilities:

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Principal payments received on real estate related investments and other loans receivable 75,125 4,512 26,525

Principal payments received on financing receivable 4,443 — —

Escrow deposits for potential acquisitions of real estate ( 144,253 ) ( 5,167 ) ( 3,800 )

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Proceeds from the issuance of common stock, net 1,071,495 1,552,894 634,446

Proceeds from the issuance of senior unsecured term loan 500,000 — —

Proceeds from the secured borrowing — 75,000 —

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Payments on unsecured revolving credit facility ( 650,000 ) — ( 310,000 )

Payments on secured notes payable ( 102,375 ) — —

Payments on secured revolving credit facilities ( 153,803 ) — —

Payments on extinguishment of debt and deferred financing costs ( 4,600 ) ( 9,188 ) ( 68 )

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Distributions to noncontrolling interests ( 5,732 ) ( 69 ) ( 41 )

Net cash provided by (used in) financing activities 1,188,806 394,318 ( 23,732 )

Net cash provided by financing activities 1,051,019 1,188,806 394,318

Effect of foreign currency translation 515 — —

Net (decrease) increase in cash and cash equivalents ( 15,780 ) ( 80,626 ) 281,270

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Right-of-use asset obtained in exchange for new operating lease obligation $ 1,465 $ 1,748 $ 369

Assets held for sale exchanged for real estate investments $ 33,821 $ — $ —

Transfer of pre-acquisition costs to acquired assets $ — $ 58 $ —

Increase in equipment, furniture and fixtures and improvements to real estate payable $ 1,761 $ — $ —

Sale of real estate settled with note receivable $ 36,000 $ 1,000 $ 2,000

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Description of Business— CareTrust REIT, Inc.’s (“CareTrust REIT” or the “Company”) primary business consists of acquiring, financing, developing and owning real property to be leased to third-party tenants in the healthcare sector.

As of December 31, 2024, the Company owned, directly or in consolidated joint ventures, and leased to independent operators, 258 skilled nursing facilities (“SNFs”), multi-service campuses, assisted living facilities (“ALFs”) and independent living facilities (“ILFs”) consisting of 28,088 operational beds and units located in 32 states with the highest concentration of properties by rental income located in California and Texas.

As of December 31, 2024, the Company also had other real estate related investments consisting of three preferred equity investments, 15 real estate secured loans receivable, and five mezzanine loans receivable with a carrying value of $ 795.2 million and one financing receivable with a carrying value of $ 96.0 million.

Description of Business— CareTrust REIT, Inc.’s (“CareTrust REIT”, the “Company”, “we” or “our”) primary business consists of acquiring, financing, developing and owning real property to be leased to third party tenants in the healthcare sector located in the United States (“U.S.”) and the United Kingdom (“U.K.”).

As of December 31, 2025, the Company owned, directly or indirectly in consolidated joint ventures, and leased to independent operators, 407 skilled nursing facilities (each, a “SNF”), senior housing communities and other properties consisting of 37,628 operational beds and units located in 32 states and the U.K.

with the highest concentration of properties by rental income located in California, the U.K., Texas, and Tennessee.

As of December 31, 2025, the Company also had other real estate related investments consisting of four preferred equity investments, 16 real estate secured loans receivable, and five mezzanine loans receivable with a carrying value of $ 899.3 million and one financing receivable with a carrying value of $ 92.2 million.

Additionally, during the fourth quarter of 2025, the Company began utilizing the structure authorized by the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”) as permitted by the Housing and Economic Recovery Act of 2008 in connection with the establishment of a senior housing operating platform (“SHOP”).

As of December 31, 2025, the Company also owned, indirectly in consolidated joint ventures, the properties and operations of three senior housing communities consisting of 270 units located in Texas that are operated on behalf of the Company by independent managers pursuant to the terms of separate management agreements which commenced December 1, 2025.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation —The accompanying consolidated financial statements of the Company reflect, for all periods presented, the historical financial position, results of operations and cash flows of the Company prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).

Dollar (“USD”) is the reporting currency of the Company.

Unless otherwise indicated, all dollar amounts are expressed in USD.

The functional currency for our consolidated subsidiaries operating in the U.K.

is the British Pound (“GBP”).

For the consolidated subsidiaries whose functional currency is not USD, the Company translates the financial statements into USD at the time of consolidation.

Balance sheet accounts are translated at the exchange rate in effect at the balance sheet date.

Gains and losses resulting from translation are included in accumulated other comprehensive income (loss), as a separate component of equity.

Income statement accounts are translated using the average exchange rate for the period.

The Company and certain of its consolidated subsidiaries have intercompany and third party debt that is not denominated in the Company’s functional currency.

When the debt is remeasured to the functional currency of the entity, a gain or loss can result.

The resulting adjustment is reflected in results of operations within gain on foreign currency transactions, net, unless it is intercompany debt that is deemed to be long-term in nature in which case the adjustments are included in accumulated other comprehensive income.

In the statement of cash flows, cash flows denominated in foreign currencies are translated using the exchange rates in effect at the time of the respective cash flows or at average exchange rates for the period, depending on the nature of the cash flow items.

Consolidation —The accompanying consolidated financial statements include the accounts of CareTrust REIT, its wholly-owned subsidiaries, and variable interest entities (“VIEs”) over which the Company exercises control.

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If neither of those criteria are met, the entity is a VIE.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The designation of an entity as a VIE is reassessed upon certain events, including, but not limited to:

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See Note 15, Variable Interest Entities , for additional information.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Noncontrolling Interests —The Company presents the portion of any equity that the Company does not own in entities that the Company controls (and thus consolidates) as noncontrolling interests and classifies those interests as a component of consolidated equity, separate from stockholders' equity, on the Company’s consolidated balance sheets.

For consolidated joint ventures, the Company allocates net income or loss utilizing the hypothetical liquidation at book value method, in which the Company allocates income or loss based on the change in each unitholders’ claim on the net assets of the joint venture partners at period end after adjusting for any distributions or contributions made during such period.

The Company includes net income (loss) attributable to the noncontrolling interests in net income (loss) in the consolidated statements of operations.

Redeemable Noncontrolling Interest —One of the Company’s noncontrolling interest holders has the ability to put its equity interests to the Company during specified option exercise periods, subject to certain conditions.

The put option is payable in cash and subject to changes in redemption value.

Accordingly, the Company records the redeemable noncontrolling interest outside of permanent equity.

The redeemable noncontrolling interest was initially measured at fair value on the date of issuance and is adjusted for additional contributions and distributions and the proportionate share of the net earnings or losses.

When the redemption of the noncontrolling interest becomes probable, the Company will record the redeemable noncontrolling interest at the greater of its carrying amount or redemption value at the end of each reporting period by making an election either to accrete changes in the redemption value of the redeemable noncontrolling interest over the period from the date it is probable of exercise to the earliest redemption date or to recognize the entire adjustment on the date redemption becomes probable.

Redeemable noncontrolling interest adjustments of carrying value to redemption value are reflected in additional paid-in-capital on the Company’s consolidated balance sheets.

The adjustment of carrying value to the redemption value that reflects a redemption in excess of fair value is included as an adjustment to net income available to the Company’s stockholders in the calculation of earnings per share.

Lessor Accounting —The Company recognizes lease revenue in accordance with Accounting Standards Codification (“ASC”) 842, Leases .

The Company’s lease agreements typically contain annual escalators based on the percentage change in the Consumer Price Index which are accounted for as variable lease payments in the period in which the change occurs.

For lease agreements that contain fixed rent escalators, the Company generally recognizes lease revenue on a straight-line basis of accounting.

The Company includes net income (loss) attributable to the noncontrolling interests in net income (loss) in the consolidated income statements.

Redeemable Noncontrolling Interests —Arrangements with noncontrolling interest holders are assessed for appropriate balance sheet classification based on the redemption and other rights held by the noncontrolling interest holder.

Two of the Company’s noncontrolling interest holders have the ability to put their equity interests to the Company during specified option exercise periods, subject to certain conditions.

The put options are payable in cash and subject to changes in redemption value.

Accordingly, the Company records the redeemable noncontrolling interests outside of permanent equity.

The redeemable noncontrolling interests are adjusted for additional contributions and distributions and the proportionate share of the net earnings or losses.

When the redemption of the noncontrolling interests becomes probable, the Company will record the redeemable noncontrolling interests at the greater of their carrying amounts or redemption values at the end of each reporting period by making an election either to accrete changes in the redemption values of the redeemable noncontrolling interests over the period from the date it is probable of exercise to the earliest redemption date or to recognize the entire adjustment on the date redemption becomes probable.

In addition to the rights of the redeemable noncontrolling interest holders, the Company has the ability to call the interests of the noncontrolling interest holders during specified option exercise periods.

Lessor Accounting, Triple-Net —The Company recognizes lease revenue in accordance with Accounting Standards Codification (“ASC”) 842, Leases .

The Company’s lease agreements typically contain annual escalators based on the percentage change in the Consumer Price Index or Retail Price Index, which are accounted for as variable lease payments in the period in which the change occurs.

For lease agreements that contain fixed or minimum rent escalators, the Company generally recognizes lease revenue on a straight-line basis of accounting.

Certain of the Company's leases provide for contingent rents equal to a percentage of the property's revenue in excess of specified base amounts or other thresholds.

Such revenue is recognized when actual results reported by the tenant, or estimates of tenants’ results, exceed the applicable base amount or other threshold.

The Company generates revenues primarily by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements, under which the tenant is solely responsible for the costs related to the property.

Tenant reimbursements related to property taxes and insurance paid by the lessee directly to a third party on behalf of a lessor are required to be excluded from variable payments and from recognition in the lessor’s statements of operations.

Otherwise, tenant recoveries for taxes and insurance are classified as additional rental revenues recognized by the lessor on a gross basis in its statements of operations.

Otherwise, tenant recoveries for taxes and insurance are classified as additional rental revenues recognized by the lessor on a gross basis in its income statements.

As part of the Company’s acquisitions and/or amendments, the Company may commit to provide incentive payments to its lessees.

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Lease incentives are included in prepaid expenses and other assets, net on the Company’s consolidated balance sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s assessment of collectibility of its tenant receivables includes a binary assessment of whether or not substantially all of the amounts due under a tenant’s lease agreement are probable of collection.

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For such leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectibility determination.

Such write-offs and recoveries are recorded as decreases or increases through rental income on the Company’s consolidated statements of operations.

Such write-offs and recoveries are recorded as decreases or increases through rental income on the Company’s consolidated income statements.

For the years ended December 31, 2025, 2024, and 2023, the Company did no t record any recovery adjustments or write-off adjustments to rental income.

For the year ended December 31, 2022, the Company did no t record any recovery adjustments and wrote-off $ 1.4 million of rental income.

See Note 4, Real Estate Investments, Net for further detail.

Lessee Accounting — For operating leases with an initial term greater than 12 months for which the Company is the lessee, such as ground leases, the Company recognizes a right-of-use (“ROU”) asset on its consolidated balance sheets at inception of the lease.

ROU assets represent the Company’s right to use underlying assets for the lease term and are based on the estimated present value of the Company’s minimum lease payments under the agreements.

The discount rate used to determine the lease liabilities is based on the Company’s incremental borrowing rate.

In connection with the Acquisition (as defined in Note 3, Acquisitions ), the Company recorded $ 30.0 million in ROU assets related to below market ground leases included in prepaid expenses and other assets, net on the consolidated balance sheets.

Revenue recognition, SHOP —For the SHOP platform, revenue from resident fees and services is predominantly service-based, and generally is recognized monthly as services are provided.

Agreements with residents generally have varying terms and are cancellable by the resident with 30 days’ notice.

The Company has elected the lessor practical expedient within ASC 842 and recognizes and discloses the revenues for SHOP resident agreements based on the predominant component, generally the non-lease service component, under ASC 606, Revenue from Contracts with Customers .

Within SHOP, the Company also recognizes revenue from residential seniors apartment leases in accordance with ASC 842.

Interest Income —Interest income is recognized as earned over the term of the related other real estate related investment under the effective interest method, or on a straight-line basis if not materially different from the effective interest method.

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If the Company determines that the collection of interest according to the contractual terms of the loan is probable, the Company will resume the accrual of interest.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Estimates and Assumptions —The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods.

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Other intangible assets acquired include amounts for in-place lease values that are based on an evaluation of the specific characteristics of each property and the acquired tenant lease(s).

Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions, and costs to execute similar leases.

Factors considered include

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

estimates of carrying costs during hypothetical expected lease-up periods, market conditions, and costs to execute similar leases.

In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions and expected trends.

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The following table summarizes the Company’s intangible lease liabilities (dollars in thousands):

December 31, 2024 December 31, 2023

Gross intangible lease liability $ 9,858 $ 7,289

As of December 31, 2025

As of December 31, 2024

Balance Weighted Average Remaining Amortization Period in Years Balance Weighted Average Remaining Amortization Period in Years

Intangible assets:

In-place lease (1)

$ 35,733 $ 4,840

Above-market lease intangibles (2)

Total lease intangibles 50,190 4,840

Accumulated amortization ( 1,440 ) ( 1,291 )

Intangible liabilities, net $ 6,589 $ 6,905

Weighted average remaining amortization period in years 1.8 3

Net intangible assets $ 48,750 19.8 $ 3,549 4.6

Intangible liabilities:

Below-market lease intangibles (2)

$ 22,534 $ 9,858

Accumulated amortization ( 597 ) ( 3,269 )

Net intangible liabilities $ 21,937 23.2 $ 6,589 1.8

(1) Amortization of intangibles is recorded in Depreciation and amortization in our consolidated income statements.

(2) Amortization of above- and below-market lease intangibles is recorded as a decrease and an increase to revenues, respectively, in our consolidated

income statements.

Impairment of Long-Lived Assets —At each reporting period, the Company evaluates its real estate investments held for use for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

The judgment regarding the existence of impairment indicators, used to determine if an impairment assessment is necessary, is based on factors such as, but not limited to, market conditions, operator performance and legal structure.

The most significant inputs to the undiscounted cash flows include, but are not limited to, historical and projected facility level financial results, a lease coverage ratio, the intended hold period by the Company, and a terminal capitalization rate.

The most significant inputs to the undiscounted cash flows include, but are not limited to, historical and projected property level financial results, a lease coverage ratio, the intended hold period by the Company, and a terminal capitalization rate.

The analysis is also significantly impacted by determining the lowest level of cash flows, which generally would be at the master lease level of cash flows.

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CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In the event of impairment, the fair value of the real estate investment is based on current market conditions and considers matters such as the forecasted operating cash flows, lease coverage ratios, capitalization rates, comparable sales data, and, where applicable, contracts or the results of negotiations with purchasers or prospective purchasers.

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A real estate investment that is reclassified is measured and recorded individually at the lower of (a) its carrying amount before the real estate investment was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the real estate investment been continuously classified as held for use, or (b) the fair value at the date of the decision not to sell or change in circumstances that led to the real estate investment no longer meeting the criteria of held for sale.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s ability to accurately estimate future cash flows and estimate and allocate fair values impacts the timing and recognition of impairments.

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One of the Company’s investments is accounted for as a financing receivable within the Company’s consolidated balance sheets, since control of the underlying assets did not transfer to the Company due to the existence of options for the seller-lessee to repurchase the real estate assets, which generally preclude accounting for the transfer of real estate assets as a sale.

The Company elected the fair value option for the financing receivable, and thereby, acquisition costs incurred in connection with entering into the financing receivable were expensed and recorded in transaction costs in the consolidated statements of operations.

Instruments for which the fair value option has been elected are measured at fair value on a recurring basis with changes in fair value recognized in other income (loss) on the consolidated statements of operations.

Fair value was estimated using an internal valuation model that considered expected future cash flows of the investment, market interest rates, and the underlying collateral value.

Interest income from financing receivable on the Company’s consolidated statements of operations is recognized under the effective interest method.

Other Real Estate Related Investments —Included in other real estate related investments on the Company’s consolidated balance sheets at December 31, 2024, are three preferred equity investments, 15 real estate secured loans receivable and five mezzanine loans receivable.

The Company elected the fair value option for all secured and mezzanine loans receivable.

Interest income from financing receivable on the Company’s consolidated income statements is recognized under the effective interest method.

Other Real Estate Related Investments —Included in other real estate related investments on the Company’s consolidated balance sheets at December 31, 2025, are four preferred equity investments, 16 real estate secured loans receivable and five mezzanine loans receivable.

The Company elected the fair value option for all but one of its secured and mezzanine loans receivable.

The Company reflects one mortgage loan receivable at amortized cost, net of an allowance for credit loss, on the accompanying consolidated balance sheets.

The amortized cost of a loan receivable is the outstanding unpaid principal balance, net of unamortized discounts, costs and fees directly associated with the origination of the loan.

Direct loan origination costs are amortized over the term of the loan as an adjustment to interest income.

Fair value was estimated using an internal valuation model that considered the expected future cash flows of the investment, the underlying collateral value, market interest rates and other credit enhancements.

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Prepaid expenses and other assets —Prepaid expenses and other assets consist of prepaid expenses, deposits, pre-acquisition costs, and other loans receivable.

During the year ended December 31, 2024, the Company determined that the remaining contractual obligations under one other loan receivable was not collectible and recorded a 4.9 million expected credit loss.

During the year ended December 31, 2022, the Company determined that the remaining contractual obligations under two other loans receivable were not collectible and recorded a $ 4.6 million expected credit loss, net of a loan loss recovery of

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ 0.8 million related to a loan previously written-off.

During the year ended December 31, 2025, the Company did not record an expected credit loss or recovery.

During the year ended December 31, 2024, the Company determined that the remaining contractual obligations under one other loan receivable were not collectible and recorded a $ 4.9 million expected credit loss.

The Company did not record an expected credit loss or recovery during the year ended December 31, 2023.

Expected credit losses and recoveries are recorded in provision for loan losses, net in the consolidated statements of operations.

Expected credit losses and recoveries are recorded in provision for loan losses, net in the consolidated income statements.

The Company’s other loans receivable are reflected at amortized cost, net of an allowance for credit loss, on the accompanying consolidated balance sheets.

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Income Taxes —The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”).

The Company believes it has been organized and has operated, and the Company intends to continue to operate, in a manner to qualify for taxation as a REIT under the Code.

The Company believes it has been organized and has operated, and the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Company intends to continue to operate, in a manner to qualify for taxation as a REIT under the Code.

In addition, the Company has formed a consolidated subsidiary that has elected REIT status.

To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute to its stockholders at least 90% of the Company’s annual REIT taxable income (computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP).

As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes as qualifying dividends all of its REIT taxable income to its stockholders.

If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions.

If the Company or its REIT subsidiary fail to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions.

Prior to 2025, the Company made no provision for income taxes.

Beginning in 2025, as a result of acquisitions, the taxable REIT subsidiary (“TRS”) is subject to federal and state income taxes on its taxable income.

Under the RIDEA provisions, the TRS owns an interest in joint ventures that operate the Company’s SHOP communities through eligible independent contractors as defined under the Internal Revenue Code.

Because these activities constitute operating business income rather than qualifying REIT rental income, they are conducted through the TRS which are subject to tax similar to regular corporations.

Deferred tax assets and liabilities are recognized for temporary differences arising from the TRS’s operations.

As a result of certain investments, certain of the Company’s subsidiaries have elected to be treated as TRSs.

The Company records income tax expense or benefit as those entities are subject to federal income tax similar to regular corporations.

In connection with the Acquisition (as defined in Note 3, Acquisitions ), the Company’s acquired foreign subsidiaries are subject to certain foreign income taxes and withholding tax.

The Company’s foreign subsidiaries in the U.K.

operate as a REIT and generally are subject only to a withholding tax on earnings upon distribution out of the U.K.

All earnings of the Company’s foreign subsidiaries in excess of the amounts required to be distributed are considered to be indefinitely reinvested and accordingly, no provision for applicable income taxes has been provided thereon.

Upon distribution of those earnings, the Company would be subject to withholding taxes payable to the U.K.

See Note 3, Acquisitions , and Note 12, Income Taxes , for additional information.

The expense associated with these taxes is included in income tax expense on the Company’s consolidated income statements.

The Company accounts for deferred income taxes using the asset and liability method and recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s financial statements or tax returns.

Under this method, the Company determines deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes the Company to change its judgment about expected future tax consequences of events, is included in the tax provision when such changes occur.

Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards.

A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized.

Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes the Company to change its judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur.

The Company recognizes and evaluates its tax positions using a two-step process.

First, the Company determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position.

Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions in income tax expense in the consolidated income statements.

Real Estate Depreciation and Amortization —Real estate costs related to the acquisition and improvement of properties are capitalized and amortized over the expected useful life of the asset on a straight-line basis.

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Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life.

The Company anticipates the estimated useful lives of its assets by class to be generally as follows:

The Company anticipates the estimated useful lives

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

of its assets by class to be generally as follows:

Building 25 - 40 years

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For the unsecured revolving credit facility, deferred financing costs are included in assets on the Company’s consolidated balance sheets.

Amortization of deferred financing costs is classified as interest expense in the consolidated statements of operations.

Amortization of deferred financing costs is classified as interest expense in the consolidated income statements.

Accumulated amortization of deferred financing costs was $ 7.4 million and $ 3.3 million at December 31, 2025 and 2024, respectively.

When financings are terminated, unamortized deferred financing costs, as well as charges incurred for the termination, are expensed at the time the termination is made.

Gains and losses from the extinguishment of debt are presented within other income (loss) in the Company’s consolidated statements of operations.

Gains and losses from the extinguishment of debt are presented within other income (loss) in the Company’s consolidated income statements.

During the year ended December 31, 2025, the Company recorded a loss on extinguishment of debt of $ 0.4 million.

During the year ended December 31, 2024, the Company recorded a loss on extinguishment of debt of $ 0.7 million.

See Note 9, Debt, for further detail.

Stock-Based Compensation —The Company accounts for share-based payment awards in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”).

ASC 718 requires all entities to apply a fair value-based measurement

Derivative and Hedging Activities —The Company is exposed to, among other risks, the impact of changes in foreign currency exchange rates as a result of the Company’s investments in the U.K.

and interest rate risk related to its capital structure.

As a matter of policy, the Company does not use derivatives for trading or speculative purposes.

The Company’s risk management program is designed to manage the exposure and volatility arising from these risks, and may utilize foreign currency forward contracts, interest rate swaps, interest rate caps and debt issued in foreign currencies to offset a portion of these risks.

Derivatives are financial arrangements among two or more parties with returns linked to or “derived” from an underlying equity, debt, commodity, other asset, liability, interest rate, foreign exchange rate or another index, or the occurrence or nonoccurrence of a specified event.

The settlement of a derivative is determined by its underlying notional amount specified in the contract.

Derivative contracts may be entered into outright or embedded within a non-derivative host contract, and may be listed, traded on exchanges or privately negotiated directly between two parties.

To qualify for hedge accounting, derivative instruments used for risk management purposes must effectively reduce the risk exposure that they are designed to hedge.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategy for undertaking various hedge transactions.

This process includes designating all derivatives that are part of a hedging relationship to specific forecasted transactions as well as recognized liabilities or assets on the consolidated balance sheets.

In addition, at the inception of a qualifying cash flow hedging relationship, the underlying transaction or transactions, must be, and are expected to remain, probable of occurring in accordance with the Company’s related assertions.

The Company recognizes all derivative instruments, including embedded derivatives required to be bifurcated, as assets or liabilities on the consolidated balance sheets at fair value which is determined using a market approach and Level 2 inputs.

For derivatives designated in qualifying cash flow hedging relationships, the gain or loss on the derivative is recognized in accumulated other comprehensive income as a separate component of equity.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

method in accounting for share-based payment transactions with directors, officers and employees.

If it is determined that a derivative instrument ceases to be highly effective as a hedge, or that it is probable the underlying forecasted transaction will not occur, the Company discontinues its cash flow hedge accounting prospectively and records the appropriate adjustment to earnings based on the current fair value of the derivative instrument.

Derivative Instruments Not Designated As Hedging Instruments —Certain derivative financial instruments, consisting of interest rate cap agreements, were used to manage the Company’s exposure to interest rate movements, but did not meet the accounting requirements to be classified as hedging instruments.

These derivatives were carried at their fair value in prepaid expenses and other assets, net on the Company’s consolidated balance sheets.

The changes in fair value of interest rate derivatives are recognized within interest expense on the Company’s consolidated income statements.

Stock-Based Compensation —The Company accounts for share-based payment awards in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”).

ASC 718 requires all entities to apply a fair value-based measurement method in accounting for share-based payment transactions with directors, officers and employees.

The Company measures and recognizes compensation expense for all share-based payment awards made to directors, officers and employees based on the grant date fair value, amortized over the requisite service period of the award.

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Forfeitures of stock-based awards are recognized as they occur.

Net income (loss) reflects stock-based compensation expense of $ 6.1 million, $ 5.2 million and $ 5.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Net income reflects stock-based compensation expense of $ 11.9 million, $ 6.1 million and $ 5.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Concentration of Credit Risk —The Company is subject to concentrations of credit risk consisting primarily of contractual obligations of operators and borrowers under its lease and lending agreements.

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Diluted EPS reflects the additional dilution for all potentially-dilutive securities.

See Note 10, Earnings (Loss) Per Common Share , for additional information.

Beds, Units, Occupancy and Other Measures —Beds, units, occupancy and other non-financial measures used to describe real estate investments included in these Notes to the consolidated financial statements are presented on an unaudited basis and are not subject to audit by the independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board.

See Note 13, Earnings Per Common Share , for additional information.

Beds, Units, Occupancy and Other Measures —Beds, units, occupancy and other non-financial measures used to describe investments in healthcare-related real estate assets included in these Notes to the consolidated financial statements are presented on an unaudited basis and are not subject to audit by the independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board.

Recent Accounting Pronouncements

Adopted —On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”), to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and the inclusion of a segment reporting footnote.

The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

Adopted —On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023‑09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023‑09”), to enhance the transparency and decision‑usefulness of income tax disclosures.

The amendments primarily require expanded disaggregation within the effective tax rate reconciliation and enhanced disclosures regarding income taxes paid, including additional jurisdictional detail.

The guidance is effective for fiscal years beginning after December 15, 2024 for public business entities, with early adoption permitted.

The Company adopted ASU 2023‑09 during the year ended December 31, 2025.

See Note 11, Segment Reporting, for further detail.

See Note 12, Income Taxes , for further detail.

Not Yet Adopted —On November 4, 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosures of income statement expenses for public business entities.

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The Company is still evaluating its adoption timeline and the impact on its disclosures.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Care REIT plc Asset Acquisition

On May 8, 2025, the Company closed its acquisition (the “Care REIT Acquisition”) of Care REIT plc (“Care REIT” or “Target”).

In connection with this acquisition, on June 30, 2025, the Company also acquired substantially all of the assets of Impact Health Partners LLP, the investment manager of Care REIT (together with the Care REIT Acquisition, the “Acquisition”).

The Company treats these acquisitions as a single transaction as they were entered into in contemplation of one another and were intended to achieve an overall economic effect by acquiring the assets of Care REIT and its associated operations.

The Care REIT Acquisition was implemented by means of a court-sanctioned scheme of arrangement (the “Scheme”) under Part 26 of the United Kingdom Companies Act of 2006.

Under the terms of the Scheme, Care REIT stockholders received 108 pence in cash per share, totaling approximately $ 595.4 million.

At closing, the Company also assumed Care REIT’s liabilities of approximately $ 290.9 million.

In addition, the Company paid the partners of Impact Health Partners LLP approximately $ 6.8 million for substantially all of Impact Health Partners LLP’s assets.

Consideration and Purchase Price Allocation

The Acquisition was accounted for as an asset acquisition in accordance with ASC 805, Business Combinations , which requires that the cost of an acquisition is allocated on a relative fair value basis to the assets acquired and the liabilities assumed.

The following table summarizes the fair value of total consideration transferred in the Acquisition (dollars in thousands):

Cash paid to Target shareholders $ 595,420

Cash paid to Investment Manager 6,786

Transaction costs capitalized 20,706

Total Consideration $ 622,912

The following table summarizes the estimated fair values assigned to the assets acquired and liabilities assumed (dollars in thousands):

Real estate investments $ 851,328

Cash and cash equivalents 8,856

Prepaid expenses and other assets 53,578

Accounts and other receivables 20

Accounts payable, accrued liabilities and deferred rent liabilities ( 37,063 )

Secured notes payable ( 99,788 )

Secured revolving credit facilities ( 154,019 )

Fair value of net assets acquired $ 622,912

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurement

The estimated fair values of assets acquired and liabilities assumed were primarily based on information that was available as of the closing date of the Acquisition.

The methodology used to estimate the fair values to apply purchase accounting are summarized below.

The Company engaged third party valuation specialists to calculate the fair value of the real estate assets acquired by the Company using standard valuation methodologies, including the cost and market approaches.

The average remaining useful lives for real estate assets, excluding land, were reset to the following:

Average Useful Life (years)

Site improvements 15

Above-market leases 22

Below-market leases 23

In-place leases 20

• All of the properties acquired are owned freehold, except for 14 which are held long leasehold for nominal rent.

On the closing date of the Care REIT Acquisition, the Company recorded operating right-of-use assets of $ 30.0 million within prepaid expenses and other assets, net.

The weighted average remaining useful lives of the acquired operating right-of-use assets are 1371 years.

• Other assets and liabilities:

the carrying values of cash, interest rate derivatives, trade and other receivables, trade and other payables, other liabilities, and debt assumed approximate their fair values.

REAL ESTATE INVESTMENTS, NET

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Accumulated depreciation and amortization (1)

( 563,645 ) ( 478,782 )

Real estate investments, net $ 3,709,576 $ 2,226,740

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) As of December 31, 2025 and 2024, accumulated depreciation and amortization included $ 1.5 million and $ 1.2 million, respectively, of accumulated amortization related to lease intangibles.

The lease intangibles are amortized over the term of each related lease.

Significant Master Leases

Ensign — As of December 31, 2024, 97 of the Company’s 258 facilities were leased to subsidiaries of The Ensign Group, Inc.

(“Ensign”) on a triple-net basis under multiple long-term leases (each, an “Ensign Master Lease” and, collectively, the “Ensign Master Leases”) which commenced on June 1, 2014 and were subsequently modified.

The obligations under the Ensign Master Leases are guaranteed by Ensign.

A default by any subsidiary of Ensign with regard to any facility leased pursuant to an Ensign Master Lease will result in a default under all of the Ensign Master Leases.

As of December 31, 2024, annualized contractual rental income from the Ensign Master Leases was $ 68.2 million and is escalated annually, in June, by an amount equal to the product of (1) the lesser of the percentage change in the Consumer Price Index (“CPI”) (but not less than zero ) or 2.5 %, and (2) the prior year’s rent.

Ensign — As of December 31, 2025, the Company leased 113 properties to subsidiaries of The Ensign Group, Inc.

(“Ensign”), including 12,218 operational beds.

A significant number of properties are leased to Ensign on a triple-net basis under eight long-term leases, each with its own pool of properties, that have varying maturities (each an “Ensign Master Lease” and collectively, the “Ensign Master Leases”).

The Ensign Master Leases escalate annually, in June, by an amount equal to the product of (1) the lesser of the percentage change in the Consumer Price Index (“CPI”) (but not less than zero ) or 2.5 %, and (2) the prior year’s rent.

In addition to rent, the subsidiaries of Ensign that are tenants under the Ensign Master Leases are solely responsible for the costs related to the leased properties (including property taxes, insurance, and maintenance and repair costs).

See below under “Lease Amendments and Terminations” for further detail on Ensign lease amendments.

During the year ended December 31, 2020, the Company acquired four additional facilities leased to subsidiaries of Ensign on a triple-net basis under two separate master lease agreements, each of which contains a purchase option.

As of December 31, 2024, annualized contractual rental income from the four additional Ensign facilities was $ 4.1 million and is escalated annually, in December, by an amount equal to the product of (1) the lesser of the percentage change in the CPI (but not less than zero ) or 2.5 %, and (2) the prior year’s rent.

In addition to rent, the subsidiaries of Ensign that are tenants under the four additional facilities are solely responsible for the costs related to the leased properties (including property taxes, insurance, and maintenance and repair costs).

The obligations under the lease agreements for the four additional facilities are guaranteed by Ensign but do not contain cross-default provisions with the Ensign Master Leases.

During December 2024, the Company received written notice that Ensign will exercise the purchase option and as such these four facilities have been classified as held for sale as of December 31, 2024.

See Note 15, Subsequent Events , for additional information.

On December 31, 2024, the Company, through a consolidated joint venture, acquired six additional facilities leased to subsidiaries of Ensign on a triple-net basis under one separate master lease agreement, which commenced January 1, 2025 (the “Ensign TN Master Lease”).

The annualized contractual rental income under the Ensign TN Master Lease is $ 7.1 million and is escalated annually, in January, by an amount equal to the product of (1) the prior year’s rent, and (2) the product of (x) 2 and (y) the annual CPI increase (not to exceed 2.5 %).

Ensign provides a guaranty for eight properties leased to The Pennant Group, Inc.

(“Pennant”) under the Pennant Master Lease (defined below), which represent $ 7.5 million of total annualized contractual rental income as of December 31, 2024.

PACS — As of December 31, 2024, 14 of the Company’s properties were leased to affiliates of PACS Group, Inc.

(“PACS”) on a triple-net basis under one long-term lease (the “PACS Master Lease”), and have a total of 1,827 operational beds.

One of the facilities is included in held for sale as of December 31, 2024.

The PACS Master Lease commenced on October 26, 2017, and provides for an initial term of 15 years, with two five-year renewal options.

During the year ended December 31, 2024, the Company, through a joint venture, acquired 11 facilities, which have a total of 1,186 operational beds, leased to subsidiaries of PACS commencing on December 1, 2024, under a new triple-net master lease agreement (the “PACS TN Master Lease”).

The PACS TN Master Lease has an initial term of 15 years, with two five-year renewal options.

As of December 31, 2024, annualized contractual rental income from the PACS Master Lease was $ 20.0 million (excluding the facility classified as held for sale), and annualized contractual rental income from all PACS leases was $ 37.9 million (excluding $ 0.3 million of rent abatement in the first year of the PACS TN Master Lease), representing 8 % and 15 % of total annualized contractual rental income, respectively.

Rent is escalated annually in November under the PACS Master Lease by an amount equal to the product of (1) the lesser of the percentage change in the CPI (but not less than zero ) or 3 %, and (2) the prior year’s rent.

Rent under the PACS TN Master Lease is escalated annually in December by an amount equal to the product of (1) the percentage change in the CPI and (2) the prior year’s rent (subject to a 2 % floor and a 4 % cap).

The PACS TN Master Lease also provides rent abatement of $ 0.3 million in the first year.

Subsequent to December 31, 2024, the PACS TN Master Lease was amended, see Note 15, Subsequent Events, for additional information.

PMG — As of December 31, 2024, 15 of the Company’s facilities were leased to subsidiaries of Priority Management Group (“PMG”) on a triple-net basis under one long-term lease (the “PMG Master Lease”).

The PMG Master Lease commenced on December 1, 2016, and provides an initial term of fifteen years , with two five-year renewal options.

As of December 31, 2024, annualized contractual rental income from the PMG Master Lease was $ 31.9 million and is escalated annually by an amount equal to the product of (1) the lesser of the percentage change in the CPI (but not less than zero ) or 3.0 %, and (2) the prior year’s rent.

In addition to rent, the subsidiaries of PMG that are tenants under the PMG Master Lease are

The obligations under the Ensign Master Leases are guaranteed by Ensign.

A default by any subsidiary of Ensign with regard to any property leased pursuant to an Ensign Master Lease will result in a default under all of the Ensign Master Leases.

As of December 31, 2025, annualized contractual rental income from the Ensign Master Leases was $ 79.6 million.

As of December 31, 2025, 9 of the 113 properties are leased to Ensign under three separate triple-net master lease agreements (the “Other Ensign Master Leases”), which have a total of 1,024 operational beds.

The obligations under these separate master leases are guaranteed by Ensign.

A default under the Other Ensign Master Lease agreements constitutes a

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

solely responsible for the costs related to the leased properties (including property taxes, insurance, and maintenance and repair costs).

As of December 31, 2024, 103 of the Company’s 258 facilities were leased to various other operators under triple-net leases.

All of these leases contain annual escalators based on the percentage change in the CPI (but not less than zero), some of which are subject to a cap, or fixed rent escalators.

As of December 31, 2024, one of the Company’s 258 facilities was non-operational and was disposed of subsequent to year end.

As of December 31, 2024, 10 facilities were held for sale.

See Note 4, Impairment of Real Estate Investments, Assets Held for Sale, Net and Asset Sales, and Note 15, Subsequent Events, for additional information.

As of December 31, 2024, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements, assets held for sale and non-operational assets, was as follows (dollars in thousands):

default under the Ensign Master Leases, but a default under the Ensign Master Leases does not constitute a default under the Other Ensign Master Leases.

As of December 31, 2025, annualized contractual rental income from the Other Ensign Master Leases was $ 12.5 million.

Ensign provides a guaranty for eight properties leased to The Pennant Group, Inc.

(“Pennant”) under the Pennant Master Lease (defined below), which represents $ 7.6 million of total annualized contractual rental income as of December 31, 2025.

PMG — As of December 31, 2025, 15 of the Company’s properties were leased to subsidiaries of Priority Management Group (“PMG”) on a triple-net basis under one long-term lease (the “PMG Master Lease”), and have a total of 2,144 operational beds.

The PMG Master Lease commenced on December 1, 2016, and provides an initial term of 15 years, with two five-year renewal options.

As of December 31, 2025, annualized contractual rental income from the PMG Master Lease was $ 32.8 million.

Rent is escalated annually by an amount equal to the product of (1) the lesser of the percentage change in the CPI (but not less than zero ) or 3.0 %, and (2) the prior year’s rent.

In addition to rent, the subsidiaries of PMG that are tenants under the PMG Master Lease are solely responsible for the costs related to the leased properties (including property taxes, insurance, and maintenance and repair costs).

As of December 31, 2025, the Company’s remaining properties held for investment were leased to various operators under triple-net leases.

All of the triple-net leases contain annual escalators based on the percentage change in the CPI or Retail Price Index (“RPI”) (but not less than zero), some of which are subject to a floor and/or cap, or fixed rent escalators.

In addition, three properties are managed on behalf of the Company by a third party operator pursuant to a management agreement.

As of December 31, 2025, the Company did not have any properties held for sale.

As of December 31, 2025, the Company’s total future contractual minimum rental income for all of its operating leases, excluding operating expense reimbursements, was as follows (dollars in thousands):

2026 $ 413,055

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Tenant Purchase Options

Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company.

Certain of the Company’s tenants hold purchase options allowing them to acquire properties they currently lease from the Company.

A summary of these purchase options is presented below (dollars in thousands):

Asset Type Properties Lease Expiration Option Period Open Date (1)

Option Type (2)

Asset Type Properties Lease Expiration Option Period Open Date Option Type (1)

Current Cash Rent (2)

SNF 1 March 2029 04/1/2022 (4)

SNF 4 November 2034 12/1/2024 (4)

SNF / Campus 2 October 2032 11/1/2026 (5)

SNF / Campus 1 May 2034 6/1/2026 (8)

SNF / Campus 1 May 2034 6/1/2027 (8)

SNF 1 November 2034 12/1/2027 (4)

SNF 2 November 2039 12/1/2027 (6)

SNF 2 November 2039 12/1/2028 (6)

SNF 2 October 2032 03/05/2027 (4)

SNF 2 May 2034 06/01/2026 (5)

SNF 1 November 2034 12/01/2027 (3)

SNF 6 November 2039 12/01/2027 (6)

(1) The Company has not received notice of exercise for the option periods that are currently open, except as described in footnote (11) below.

SNF 1 August 2040 09/01/2028 (7)

(1) Option type includes:

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(4) Option window is open for six months from the option period open date.

(6) Option window is open for one year from the option period open date.

(7) Purchase option reflects two option types.

(8) Purchase option window is open for nine months from the option period open date.

(9) Purchase option provides for the purchase of two of three facilities.

The current cash rent shown is an average of the range of $ 3.2 million to $ 3.5 million.

(10) Purchase option provides for the purchase of one of five facilities.

The current cash rent shown is an average of the range of $ 1.0 million to $ 1.6 million.

If the operator exercises its option to extend the term of the master lease, beginning on June 1, 2035 and ending nine months thereafter, the operator will have a purchase option for all facilities then remaining in the master lease.

(11) The operator notified the Company of their intent to exercise the purchase option of the four SNFs in December 2024.

The Company classified the four facilities as held for sale as of December 31, 2024 and subsequently sold the facilities in January 2025.

See Note 15, Subsequent Events, for additional information.

(12) Purchase option provides for the purchase of two of six facilities.

(5) Option window is open for nine months from the option period open date.

(6) Lease agreement provides for the purchase of one to two properties in each window over four option windows, for a total of six properties.

Each option window opens at the beginning of each of lease years four, five, six, and seven beginning December 1, 2027 and is open for one year .

(7) Option window is open for 24 months from the option period open date.

(8) Option provides for purchase of any two of three properties.

The current cash rent shown is an average of the range of $ 3.3 million to $ 3.6 million.

(13) Purchase option provides for the purchase of one of six facilities.

(9) Option provides for purchase of any one of five properties in the first option window and another one of five properties in the second option window beginning June 1, 2027.

The current cash rent shown is an average of the range of $ 2.7 million to $ 3.5 million.

Provided the operator exercises its option to extend the term of the master lease, beginning on June 1, 2035 and ending nine months thereafter, the operator will have an option for all properties then remaining in the master lease.

Rental Income

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Amortization of lease incentives ( 193 ) ( 22 ) —

Amortization of below-market lease intangible 2,885 384 —

Adjustment for collectibility (2)

Amortization of above and below-market lease intangibles (2)

6,798 2,885 384

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Tenant operating expense reimbursements for the years ended December 31, 2025, 2024 and 2023 were $ 8.8 million, $ 6.7 million, and $ 5.5 million, respectively.

(2) During the year ended December 31, 2022, and in accordance with ASC 842, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from five existing and former operators.

As such, the Company reversed $ 0.7 million of operating expense reimbursements, $ 0.2 million of contractual rent and $ 0.5 million of straight-line rent during the year ended December 31, 2022.

If lease payments are subsequently deemed probable of collection, the Company will reestablish the receivable which will result in an increase in rental income for such recoveries.

(2) In connection with lease terminations in August 2025, the Company accelerated the amortization of the remaining below-market lease intangibles of $ 4.4 million during the year ended December 31, 2025.

CARETRUST REIT, INC.

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The following table summarizes the Company’s acquisitions for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands):

Type of Property Purchase Price (1)

Initial Annual Cash Rent (2)

Type of Property (1)(2)

Purchase Price (3)

Number of Properties Number of Beds/Units (4)

December 31, 2025

Skilled nursing (4)(6)

$ 712,471 $ 65,924 42 4,508

Multi-service campuses (4)

90,639 7,467 5 683

ALF / ILF (4)

Skilled nursing triple-net $ 616,521 27 3,214

Senior housing triple-net (5)

908,507 135 7,822

SHOP 40,298 3 270

Total $ 1,565,326 165 11,306

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Multi-service campuses 90,639 5 683

25,276 1,916 1 168

ALF / ILF 12,749 2 102

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Skilled nursing (7)

$ 169,181 10 1,256

Multi-service campuses (7)

ALF / ILF 39,318 4 241

Total $ 233,775 15 1,665

(1) During the year ended December 31, 2025, the Company began including ALFs and ILFs within the senior housing triple‑net portfolio and evaluating the underlying financials and primary purpose of each multi‑service campus to determine whether it should be classified as skilled nursing or senior housing.

(2) Includes properties held in consolidated joint ventures as of December 31, 2025, 2024 and 2023, respectively.

See Note 15, Variable Interest Entities , for additional information.

(3) Purchase price includes capitalized acquisition costs.

(2) Initial annual cash rent represents initial cash rent for the first twelve months.

(4) The number of beds/units includes operating beds at acquisition date.

(4) Includes facilities held in consolidated joint ventures.

See Note 12, Variable Interest Entities , for additional information.

(5) One acquisition including three SNFs and one multi-service campus provides for annual fixed increases from $ 6.8 million in year one to $ 7.6 million in year two and $ 8.9 million in year three.

(5) Includes U.K.

Care Homes acquired in connection with the Acquisition.

See Note 3, Acquisitions , for additional information.

On July 31, 2025, the Company swapped 10 U.K.

Care Homes for six U.K.

Care Homes and received £ 2.2 million in cash before selling costs.

The amounts shown above are inclusive of this asset swap.

See Note 5, Impairment of Real Estate Investments, Assets Held for Sale and Asset Sales , for additional information.

(6) Initial annual cash rent for 11 properties does not consider rent abatement of $ 0.3 million.

(7) One acquisition including three SNFs and one multi-service campus provides for annual fixed increases from $ 6.8 million in year one to $ 7.6 million in year two and $ 8.9 million in year three.

Lease Amendments and Terminations

Lease Extension.

Effective December 1, 2025, subsidiaries of Ensign exercised the option to extend the lease term of one Ensign Master Lease by five years from May 31, 2027 to May 31, 2032.

The lease provides for three additional five-year renewal options.

This amendment triggers a base rent adjustment at the commencement of the extension term in 2027, reducing the rent by approximately $ 0.6 million.

Amended Operator Lease.

On October 30, 2025, the Company acquired five skilled nursing facilities in the mid-Atlantic and southeast.

In connection with the acquisition of the facilities, the Company amended an existing master lease with a skilled nursing operator.

The amended master lease has a remaining term of approximately 15 years, with two five-year renewal options and CPI-based rent escalators.

Annual cash rent under the amended lease increased by approximately $ 18.0 million.

New SNF lease and Lease Termination.

Effective August 31, 2025, the Company terminated its master lease with a skilled nursing operator and entered into a new triple-net master lease with a new skilled nursing operator with respect to four skilled nursing facilities.

The new master lease has an initial term of approximately 15 years with two five-year renewal options and fixed rent escalators.

Initial annual cash rent under the new master lease was approximately $ 3.9 million.

Annual cash rent under the terminated master lease was $ 4.0 million.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Covenant Care Lease Transitions.

On August 1, 2025, the Company funded approximately $ 12.3 million (inclusive of transaction costs) in connection with the assignment and termination of multiple lease agreements between the Company and affiliates of Covenant Care California, LLC and pertaining to 10 skilled nursing facilities and one senior housing community located in California.

In connection with the transaction, the Company entered into new long-term leases (or in some instances, amended existing leases with current tenants of the Company) with replacement tenants to continue operating the properties, as described below.

As a result of the subject transaction, annual rent increased approximately $ 3.9 million.

Annual cash rent under the terminated master leases was $ 13.0 million and, during the year ended December 31, 2025, the Company accelerated the amortization of the remaining below market lease intangibles of $ 4.4 million and in-place lease intangibles of $ 2.4 million.

In connection with the transaction, the Company amended one existing triple-net master lease with subsidiaries of Ensign to add six skilled nursing facilities and one senior housing community, and to extend the lease term.

The lease, as amended, has a remaining term of 15 years.

Three of the seven facilities will transition upon regulatory approval which is expected to occur in the next 12 months.

The applicable Ensign master lease, as amended, includes two five-year renewal options and CPI-based rent escalators.

Annual cash rent under the applicable master lease, as amended, increased by approximately $ 10.0 million.

Also in connection with the transaction, the Company, via two consolidated joint ventures, entered into a new triple-net master lease with a skilled nursing operator to include three skilled nursing facilities.

The new master lease commenced August 1, 2025 with an initial term of approximately 10 years, including four five-year renewal options and fixed annual escalators.

Initial annual cash rent under the new master lease was $ 6.4 million.

In addition, the Company amended one existing triple-net master lease to add one multi-service campus.

Annual cash rent under the applicable master lease, as amended, increased by approximately $ 0.6 million.

Amended Kalesta Lease.

On February 28, 2025, the Company acquired one senior housing community.

In connection with the acquisition, the Company amended its existing triple-net master lease with affiliates of Kalesta Healthcare, LLC (“Kalesta”) to include the one senior housing community and extended the initial lease term.

The Kalesta master lease, as amended, had a remaining term at the date of amendment of approximately 15 years.

Annual cash rent under the amended Kalesta master lease increased by approximately $ 1.9 million.

Effective December 5, 2025, the Company sold one senior housing community.

In connection with the disposition, the Company amended its Kalesta master lease to remove the property.

The Kalesta master lease, as amended, had a remaining term at the date of amendment of approximately 14 years.

Annual cash rent under the amended Kalesta master lease decreased by approximately $ 1.6 million.

Ridgeline Lease Termination and NC Jaybird Lease.

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The Company entered into a new master lease (the “NC Jaybird Lease”) with affiliates of Jaybird Senior Living, Inc.

(“Jaybird”) with respect to two ALFs in North Carolina previously leased to Ridgeline.

(“Jaybird”) with respect to two senior housing communities in North Carolina previously leased to Ridgeline.

The NC Jaybird Lease commenced on January 1, 2025 with an initial term of approximately 12 years, featuring two five-year renewal options and CPI-based rent escalators.

Under the NC Jaybird Lease, Jaybird will receive three months of abated rent, followed by 15 months of rent calculated as a percentage of the tenants’ gross revenue.

Subsequently, the next twelve months will have a fixed annual cash rent amount of $ 0.8 million increasing annually based on CPI.

Annual rent under the terminated master lease for the two ALFs in North Carolina was $ 0.8 million.

Four facilities which were under the Ridgeline master lease are currently held for sale and two facilities are in the process of transferring operations.

Subsequently, the next 12 months will have a fixed annual cash rent amount of $ 0.8 million increasing annually based on CPI.

Annual rent under the terminated master lease for the two senior housing communities in North Carolina was $ 0.8 million.

Effective May 1, 2025, two additional senior housing communities in Michigan and Ohio previously operating under the Ridgeline master lease transferred operations to Jaybird under a separate master lease (“New Jaybird Lease”).

The New Jaybird Lease has an initial term of 12 years, featuring two five-year renewal options and CPI-based rent escalators.

Under the New Jaybird Lease, Jaybird will receive six months of abated rent, followed by 12 months of rent calculated as a percentage of tenants’ gross revenue, and the following 12 months will have a fixed annual cash rent amount of $ 1.9 million increasing annually based on CPI.

Annual rent under the terminated master lease for the two senior housing communities was $ 1.8 million.

Four senior housing communities which were under the Ridgeline master lease were sold during the year ended December 31, 2025.

See Note 5, Impairment of Real Estate Investments, Assets Held For Sale, Net And Asset Sales , for additional information.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amended PACS Master Lease .

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Annual cash rent under the applicable Ensign master lease, as amended, increased by approximately $ 0.6 million.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Lease Termination and New Jaybird Lease.

Effective August 1, 2024, two ALFs in Illinois were removed from a master lease with a seniors housing operator and the Company terminated the master lease.

Effective August 1, 2024, two ALFs in Illinois were removed from a master lease with a senior housing operator and the Company terminated the master lease.

In connection with the lease termination, the Company entered into a new master lease (the “Jaybird Lease”) with Jaybird with respect to the two ALFs.

1 unchanged sentence

Under the Jaybird Lease, Jaybird will receive three months of abated rent, followed by 15 months of rent calculated as a percentage of the tenants’ gross revenue.

Subsequently, the next twelve months will have a fixed annual cash rent amount of $ 1.8 million with annual CPI-based rent escalators.

Subsequently, the next 12 months will have a fixed annual cash rent amount of $ 1.8 million with annual CPI-based rent escalators.

Annual rent under the terminated master lease was $ 1.8 million.

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Hillstone paid a lease termination fee of approximately $ 0.8 million to cover unpaid contractual rent.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Noble NJ Lease Termination and New Ridgeline NJ Lease.

9 unchanged sentences

The amended lease provided for $ 0.2 million in rent abatement and a $ 0.2 million rent deferral that was required to be repaid beginning in December 2024.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amended Pennant Lease.

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Annual cash rent under the new lease was approximately $ 0.8 million and the master lease provides Pennant with three months deferred rent to be repaid before the expiration or termination of the lease.

Noble Partial Lease Termination and New Landmark Leases.

In June and August of 2022, one ALF in Florida and one ALF in Maryland were removed from a master lease with affiliates of Noble Senior Services (“Noble”) and the Company amended the applicable Noble master lease to reflect the removal of the two ALFs.

Annual cash rent under the applicable Noble master lease decreased by approximately $ 1.1 million.

In connection with the partial lease termination, the Company entered into a lease with Landmark Recovery of Maryland, LLC and Landmark Recovery of Florida, LLC (collectively “Landmark”) to repurpose the facilities to behavioral health treatment centers.

Rent under the leases will commence 12 - 18 months following commencement of the lease term or, if earlier, upon Landmark obtaining all licensure, permits, and other required regulatory authorizations with respect to operating the facility.

The leases will expire on the 20 th anniversary of the rent commencement date and both contain one 10-year renewal option and CPI-based rent escalators.

Pennant Partial Lease Termination and Amended Ensign Master Leases.

On April 1, 2022, operations at two ALFs in California and Washington operated by Pennant were transferred to Ensign.

In connection with the transfers, the Company amended the Pennant Master Lease to reflect the removal of the two ALFs and amended two existing Ensign Master Leases to include the two ALFs.

The applicable Ensign Master Leases, as amended, had a remaining term at the date of amendment of approximately five years and 16 years, respectively, both with three five-year renewal options and CPI-based rent escalators.

Annual cash rent under each of the two applicable Ensign Master Leases, as amended, increased by approximately $ 0.4 million and annual cash rent under the Pennant Master Lease, as amended, decreased by $ 0.8 million.

On March 1, 2022, operations at one ALF in Arizona operated by affiliates of Pennant were transferred to affiliates of Ensign.

In connection with the transfer, the Company amended the Pennant Master Lease to reflect the removal of the ALF and amended an existing Ensign Master Lease to include the one ALF.

The applicable Ensign Master Lease, as amended, had a remaining term at the date of amendment of approximately 11 years, with two five-year renewal options and CPI-based rent escalators.

Annual cash rent under the applicable Ensign Master Lease, as amended, increased by approximately $ 0.3 million and annual cash rent under the Pennant Master Lease, as amended, decreased by the same amount.

Amended Eduro Master Lease.

On February 1, 2022, the Company acquired one SNF.

In conjunction with the acquisition, the Company amended its existing triple-net master lease with affiliates of Eduro to include the one SNF and extended the initial lease term.

The Eduro master lease, as amended, had a remaining term at the date of amendment of approximately 12 years, with two five-year renewal options and CPI-based rent escalators.

Annual cash rent under the Eduro master lease, as amended, increased by approximately $ 0.8 million.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amended WLC Master Lease.

On March 1, 2022, the Company acquired one multi-service campus.

In conjunction with the acquisition, the Company amended its existing triple-net master lease with affiliates of WLC Management Firm, LLC (“WLC”) to include the one multi-service campus.

The WLC master lease, as amended, had a remaining term at the date of amendment of approximately 12 years, with two five-year renewal options and CPI-based rent escalators.

Annual cash rent under the WLC master lease, as amended, increased by approximately $ 1.2 million.

IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES

During the year ended December 31, 2024, the Company recognized aggregate impairment charges of $ 42.2 million, of which $ 18.8 million related to properties held for sale, $ 9.4 million related to properties held for investment, and $ 14.0 million related to properties that were sold.

During the year ended December 31, 2025, the Company recognized aggregate impairment charges of $ 2.5 million related to properties that were sold.

During the year ended December 31, 2023, the Company recognized aggregate impairment charges of $ 36.3 million, of which $ 26.8 million related to properties held for sale, $ 8.0 million related to properties held for investment, and $ 1.5 million related to properties that were sold.

These charges are reported in impairment of real estate investments in the consolidated statements of operations.

These charges are reported in impairment of real estate investments in the consolidated income statements.

Impairment of Real Estate Investments Held for Sale

As of December 31, 2025, there were no properties classified as held for sale.

As of December 31, 2024, there were 10 facilities classified as held for sale, all of which have been recorded at the lesser of their carrying value or fair value less estimated costs to sell.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The fair values of the assets held for sale were based on estimated sales prices, which are considered to be Level 3 measurements within the fair value hierarchy.

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There are inherent uncertainties in making these assumptions.

For the Company’s impairment calculations on assets held for sale during the twelve months ended December 31, 2024, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $ 7,000 to $ 116,000 , with a weighted average price per unit of $ 60,000 .

For the Company’s impairment calculations on assets held for sale during the twelve months ended December 31, 2023, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $ 8,000 to $ 85,000 , with a weighted average price per unit of $ 20,000 .

For the Company’s impairment calculations on assets held for sale during the twelve months ended December 31, 2022, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $ 20,000 to $ 85,000 , with a weighted average price per unit of $ 55,000 .

For the Company’s impairment calculations on assets held for sale during the year ended December 31, 2025, the Company’s fair value estimates primarily relied on a market approach and utilized a price per unit of $ 181,000 .

For the Company’s impairment calculations on assets held for sale during the year ended December 31, 2024, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $ 7,000 to $ 116,000 , with a weighted average price per unit of $ 60,000 .

For the Company’s impairment calculations on assets held for sale during the year ended December 31, 2023, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $ 8,000 to $ 85,000 , with a weighted average price per unit of $ 20,000 .

Impairment of Real Estate Investments Held for Investment

During the quarter ended December 31, 2024, the Company recognized an impairment charge of $ 5.0 million related to one ALF with a carrying value of $ 5.0 million which was non-operational.

During the year ended December 31, 2025, the Company recognized an impairment charge of $ 2.0 million related to one SNF.

The Company wrote down the carrying value of $ 13.6 million to the estimated fair value of $ 11.6 million.

The SNF was subsequently sold in December 2025.

The fair value of the asset was based on binding agreements for sale and considered Level 3 measurements within the fair value hierarchy.

For the Company’s impairment calculation, the Company utilized a price per unit of $ 93,000 .

During the year ended December 31, 2024, the Company recognized an impairment charge of $ 5.0 million related to one ALF with a carrying value of $ 5.0 million which was non-operational.

In January 2025, the Company deeded the improvements back to the ground lessor for no consideration.

During the third quarter of 2024, the Company determined that two ALFs, with a carrying value of $ 5.0 million, that were classified as held for sale at June 30, 2024 no longer met the held for sale criteria.

During the year ended December 31, 2024, the Company determined that two ALFs, with a carrying value of $ 5.0 million, that were classified as held for sale at June 30, 2024 no longer met the held for sale criteria.

During the second quarter of 2024, the Company recognized $ 4.4 million of impairment charges in connection with the write down of the assets’ carrying values to their estimated fair value less costs to sell.

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the year ended December 31, 2022, the Company recognized an impairment charge of $ 1.7 million related to one SNF.

The Company wrote down its carrying value of $ 2.8 million to its estimated fair value of $ 1.1 million, which is included in real estate investments, net on the Company’s condensed consolidated balance sheets.

The fair value of the asset was based on comparable market transactions and considered Level 3 measurements within the fair value hierarchy.

For the Company’s impairment calculation, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit of $ 20,000 .

During the third quarter of 2022, the Company determined that one ALF, with a carrying value of $ 4.9 million, that was classified as held for sale at June 30, 2022 no longer met the held for sale criteria.

The Company reclassified this ALF out of assets held for sale at its fair value at the date of the decision not to sell of approximately $ 4.9 million, or a weighted average price per unit of $ 125,000 .

During the year ended December 31, 2022, the Company recognized approximately $ 1.4 million in impairment charges related to this one ALF.

During the fourth quarter of 2022, the Company determined that nine ALFs, with a carrying value of $ 50.8 million, that were classified as held for sale at September 30, 2022, no longer met the held for sale criteria.

The Company reclassified the nine ALFs out of assets held for sale at their fair value at the date of the decision not to sell of approximately $ 47.8 million.

During the year ended December 31, 2022, the Company recognized approximately $ 16.6 million in impairment charges related to these nine ALFs.

The fair value of assets reclassified as real estate investments held for use was based on an income approach using current market conditions and considers matters such as the forecasted operating cash flows, lease coverage ratios, capitalization rates, and, where applicable, terms of recent lease agreements or the results of negotiations with prospective tenants, which are considered to be Level 3 measurements within the fair value hierarchy.

There are inherent uncertainties in making these assumptions.

For the Company’s impairment calculations, the Company’s fair value estimates primarily relied on an income approach.

When utilizing an income approach, assumptions include, but are not limited to, terminal capitalization rates ranging from 7.5 % to 8.75 % and discount rates ranging from 8.5 % to 9.75 %.

Asset Sales and Held for Sale Reclassifications

Asset Exchange

On July 31, 2025, the Company completed an asset swap pursuant to which it transferred ownership of 10 U.K.

Care Homes to an existing tenant in exchange for six U.K.

Care Homes and £ 2.2 million in cash before selling costs.

Care Homes had been classified as held for sale as of June 30, 2025.

The annual rent did not significantly change as a result of the asset swap.

The following table summarizes the Company’s dispositions for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands):

Twelve Months Ended December 31,

For the Year Ended December 31,

2025 2024 2023

Number of facilities 17 5 13

Number of properties (1)

Net sales proceeds (2)

1 unchanged sentence

Net carrying value 121,953 19,923 16,095

Net (loss) gain on sale $ ( 2,208 ) $ 2,218 $ ( 3,769 )

(1) Net sales proceeds, net carrying value and net (loss) gain on sale also reflect a land parcel that was sold during the year ended December 31, 2022, which is not included in the number of facilities.

(2) Net sales proceeds includes $ 1.0 million of seller financing in connection with the sale of one ALF in January 2024.

Net sales proceeds includes $ 2.0 million of seller financing in connection with the sale of one ALF in June 2023.

Net sales proceeds includes $ 12.0 million of seller financing in connection with the sale of six SNFs and one multi-service campus in September 2022.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net gain (loss) on sale $ 31,548 $ ( 2,208 ) $ 2,218

(1) One non-operational previously impaired property sold during the year ended December 31, 2025 was not classified as held for sale as of December 31, 2024.

In addition, two properties sold during the year ended December 31, 2025 were not classified as held for sale during the year.

(2) Net sales proceeds for the year ended December 31, 2025 includes non-cash consideration related to an asset exchange and $ 36.0 million of seller financing.

Net sales proceeds for the year ended December 31, 2024 includes $ 1.0 million of seller financing in connection with the sale of one ALF in January 2024.

Net sales proceeds for the year ended December 31, 2023 includes $ 2.0 million of seller financing in connection with the sale of one ALF in June 2023.

The following table summarizes the Company’s assets held for sale activity for the years ended December 31, 2025 and 2024 (dollars in thousands):

Net Carrying Value Number of Facilities

Net Carrying Value Number of Properties

December 31, 2023 $ 15,011 14

2 unchanged sentences

Impairment of real estate held for sale ( 37,266 ) —

Assets reclassified to held for investment ( 5,008 ) ( 2 )

December 31, 2024 57,261 10

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Other Real Estate Related Investments:

Facility Count and Type As of December 31, 2024

Property Count and Type As of December 31, 2025

As of December 31, 2024

Loans Receivable, at Fair Value:

SNF Campus ALF ILF Principal Balance as of December 31, 2024

Skilled nursing

Senior housing Principal Balance as of December 31, 2025

Fair Value as of December 31, 2025 (1)

Principal Balance as of December 31, 2024

Fair Value as of December 31, 2024 (1)

Weighted Average Contractual Interest Rate (2), (3)

Maturity Date

4 unchanged sentences

Total $ 776,290 $ 792,950 $ 740,687 $ 741,004

Property Count and Type As of December 31, 2025

As of December 31, 2024

Loan Receivable, at Amortized Cost:

Principal Balance as of December 31, 2025

Book Value as of December 31, 2025 (5)

Principal Balance as of December 31, 2024

Book Value as of December 31, 2024

Weighted Average Contractual Interest Rate Maturity Date

Weighted Average Effective Interest Rate Weighted Average Effective Interest Rate Maturity Date

Mortgage secured loan receivable 1 $ 20,888 $ 21,728 $ — $ — 6.1 % N/A 9/21/2026

Total $ 20,888 $ 21,728 $ — $ —

As of December 31, 2025

As of December 31, 2024

Preferred Equity Investments:

Principal Balance as of December 31, 2025

Book Value as of December 31, 2025

Principal Balance as of December 31, 2024

Book Value as of December 31, 2024

Weighted Average Effective Interest Rate Weighted Average Effective Interest Rate Maturity Date

Preferred Equity $ 83,782 $ 84,585 $ 53,782 $ 54,199 11.5 % 11.1 % N/A

Total $ 83,782 $ 84,585 $ 53,782 $ 54,199

Facility Count and Type As of December 31, 2024

Property Count and Type As of December 31, 2025

As of December 31, 2024

Financing Receivable, at Fair Value:

SNF Campus ALF ILF Principal Balance as of December 31, 2024

Skilled nursing

Senior housing Principal Balance as of December 31, 2025

Fair Value as of December 31, 2025 (6)

Principal Balance as of December 31, 2024

Fair Value as of December 31, 2024 (6)

Weighted Average Effective Interest Rate (7)

Maturity Date

4 unchanged sentences

(2) Rates are net of subservicing fee, if applicable.

(3) Three mortgage secured loans receivable and two mezzanine loans receivable use term secured overnight financing rate (“SOFR”), which are subject to a floor for certain of the loans.

(3) One mortgage secured loan receivable and one mezzanine loan receivable use term secured overnight financing rate (“SOFR”), which are subject to a floor for certain of the loans.

Term SOFR used as of December 31, 2025 was 3.70 %.

(4) If the Company also has extended mezzanine financing to an affiliate of the borrower under a mortgage loan receivable, the applicable facility counts are included in both respective totals.

(5) Fair value of financing receivable includes $ 0.3 million of accrued interest for the year ended December 31, 2024.

(6) The Company leased these facilities back to the seller under a 15-year contract, with two five-year renewal options.

(4) If the Company also has extended mezzanine financing to an affiliate of the borrower under a mortgage loan receivable, the applicable property counts are included in both respective totals.

(5) Book value of loan receivable, at amortized cost, includes $ 0.4 million of loan costs as of December 31, 2025.

(6) Fair value of financing receivable includes $ 0.9 million and $ 0.3 million of accrued interest as of December 31, 2025 and 2024, respectively.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(7) The Company leased these properties back to the seller under a 15-year contract, with two five-year renewal options.

The agreement provides for an initial contractual cash yield of 11.0 % for the first three years , with annual CPI-based escalators beginning in year four, subject to a 3 % cap.

2 unchanged sentences

If any deferred amounts remain unpaid, beginning in year eight, the deferred amounts are to be repaid in 24 equal monthly payments.

The Company has not received notice of exercise for the purchase option period currently open.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

One purchase option was exercised and closed during the period;

all other purchase option periods remain closed.

See the Financing Receivable discussion below for additional information.

The following table summarizes the Company’s other real estate related investments activity for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

3 unchanged sentences

Unrealized gain (loss) on other real estate related investments, net 15,831 9,045 ( 6,485 )

Amortization of fees ( 117 ) — —

Payments of other real estate related investments ( 73,901 ) ( 4,412 ) ( 25,537 )

Net change in other real estate related investments $ 614,834 $ 22,200 $ 141,213

Net increase in other real estate related investments $ 104,060 $ 614,834 $ 22,200

The fair value option is elected on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected.

1 unchanged sentence

2025 Other Real Estate Related Investment Transactions

On January 10, 2025, the Company advanced the second installment of a mezzanine loan for one SNF secured by a pledge of membership interests in an up-tier holding company of the borrower group for $ 6.4 million.

The loan bears interest at a rate of 13 %, with annual CPI-based escalators.

The mezzanine loan is set to mature on December 31, 2034.

The mezzanine loan may not be prepaid in whole or in part prior to maturity.

The Company elected the fair value option for the mezzanine loan.

In February 2025, the Company received a partial prepayment on one mortgage loan in the amount of $ 4.4 million in connection with the borrower’s election to release one skilled nursing facility from the loan.

In April 2025, the remaining outstanding balance of $ 2.9 million was paid off.

In April 2025, one mortgage loan with a principal balance of $ 2.0 million was paid off and the Company funded a $ 9.0 million earnout on an existing $ 165.0 million mortgage loan.

On June 1, 2025, July 1, 2025 and November 14, 2025, the Company extended a mortgage loan through installments of $ 6.1 million, $ 5.0 million, and $ 14.0 million, respectively, to a skilled nursing real estate owner.

The mortgage loan is secured by two SNFs and bears interest at a rate of 8.5 %, payable monthly.

The mortgage loan is set to mature on May 31, 2035 and includes a one year extension option.

The mortgage loan may be prepaid in whole, after the 12 th month following the loan closing, for an exit fee ranging from 0 % to 2 % of the loan plus unpaid interest payments.

The Company elected the fair value option for the mortgage loan.

On September 22, 2025, the Company extended a mortgage loan of £ 15.5 million, to an existing operator.

The mortgage loan is secured by one U.K.

Care Homes and bears interest at a rate of 8.5 %.

The mortgage loan is set to mature on September 21, 2026, and includes a put and call option, subject to certain conditions, to purchase the real estate.

Upon receipt by the existing operator of certain regulatory approvals, the Company intends to exercise its option to accelerate the mortgage loan, acquire the underlying real estate securing the mortgage loan, and enter into a new long-term lease with the existing operator.

This mortgage loan is reflected at amortized cost on the consolidated balance sheets.

The amortized cost of a loan receivable is the outstanding unpaid principal balance, net of unamortized costs and fees directly associated with the origination of the loan.

Direct loan origination costs are amortized over the term of the loan as an adjustment to interest income.

On October 31, 2025, one mezzanine loan with a principal balance of $ 35.0 million was fully prepaid, including all unpaid accrued interest.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On November 14, 2025, one mortgage loan with a principal balance of $ 29.6 million was fully prepaid, including all unpaid accrued interest.

On November 25, 2025, the Company extended a $ 29.0 million mortgage loan as part of a refinance of a larger, multi-tranche real estate secured loan facility to a skilled nursing real estate owner.

The secured loan was structured with an "A" tranche, a "B" tranche and a "C" tranche (with the "C" tranche being the most subordinate).

The Company's $ 29.0 million loan constituted the entirety of the "B" tranche.

The Company is the lender on the existing $ 75.0 million "C" tranche and $ 25.0 million mezzanine loan.

The loan facility is secured by a portfolio of 18 skilled nursing facilities in the Mid-Atlantic region, operated by a large, regional skilled nursing operator.

The "B" tranche of the loan bears interest at 9.69 %, less a servicing fee of 10 bps ( 0.10 %) per annum of the serviced loan.

The “C” and “B” tranches are scheduled to mature on March 31, 2028, include two one-year extensions options, and may (subject to certain restrictions) be prepaid, in whole or in part, for an exit fee ranging from 0 % to 2 % of the loan plus unpaid interest payments.

On December 4, 2025, the Company extended a mezzanine loan of $ 3.3 million for one SNF located in CA secured by a pledge of membership interests in an up-tier holding company of the borrower group.

The mezzanine loan bears interest at a rate of 12.50 %.

The mezzanine loan is set to mature on November 30, 2030, and has a 12-month lockout period on prepayment subject to certain exceptions.

The mezzanine loan may otherwise be prepaid in whole after the 12‑month lockout period.

On December 5, 2025, the Company closed on the sale of one senior housing community.

In connection with the sale, the Company provided affiliates of the purchaser of the property with a $ 36.8 million mortgage loan which bears interest at a rate of 9.25 %.

The mortgage loan is s ecured by one senior housing community, is set to mature on December 5, 2028 and includes a one‑year extension option.

The loan has a 12-month lockout period on prepayment subject to certain exceptions.

The mortgage loan may otherwise be prepaid in whole after the 12-month lockout period, subject to certain circumstances, for an exit fee ranging from 0 % to 3 % of the loan, as applicable.

2024 Other Real Estate Related Investment Transactions

On January 1, 2024, the Company closed on the sale of one ALF.

3 unchanged sentences

The Company elected the fair value option for the mortgage loan.

On January 25, 2024, the Company extended a $ 9.8 million mezzanine loan for a portfolio of ten SNFs located in Missouri secured by a pledge of membership interests in an up-tier holding company of the borrower group.

On January 25, 2024, the Company extended a $ 9.8 million mezzanine loan for a portfolio of 10 SNFs located in Missouri secured by a pledge of membership interests in an up-tier holding company of the borrower group.

The Company participated in the loan alongside a co-lender pursuant to a participation agreement entered into between the Company and the co-lender.

9 unchanged sentences

The Company elected the fair value option for the mezzanine loan.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On February 2, 2024, the Company extended a $ 35.0 million mezzanine loan for a portfolio of 15 SNFs located in Virginia secured by a pledge of membership interests in an up-tier holding company of the borrower group.

5 unchanged sentences

The mezzanine loan is set to mature on August 1, 2027, with two six-month extension options and may (subject to certain restrictions) be prepaid in whole before the maturity date for an exit fee ranging from 1 % to 2 % of the loan plus unpaid interest payments equal to 18 months (less the amount of monthly interest payments made by the borrower through the date of prepayment).

The Company elected the fair value option for the mezzanine loan.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The mezzanine loan was fully prepaid in 2025, as noted above under “2025 Other Real Estate Related Investment Transactions.” The Company elected the fair value option for the mezzanine loan.

On May 1, 2024, the Company extended a $ 26.7 million mortgage loan to a skilled nursing real estate owner.

32 unchanged sentences

The Company elected the fair value option for the mortgage loan.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On December 20, 2024, the Company extended a $ 5.1 million mezzanine loan for one multi service campus located in Maryland secured by a pledge of membership interests in an up-tier holding company of the borrower group.

8 unchanged sentences

The Company elected the fair value option for the mortgage loan.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2023 Other Real Estate Related Investment Transactions

3 unchanged sentences

The maturity date was subsequently extended to May 31, 2025.

The mortgage loan has a one-year extension option and may be prepaid in whole before the maturity date.

The mortgage loan was fully paid off in 2025 as noted above under “2025 Other Real estate Related Investment Transactions” for more detail.

The Company elected the fair value option for the mortgage loan.

24 unchanged sentences

The $ 15.0 million mezzanine loan was originated in 2020 for nine skilled nursing facilities secured by membership interests in the borrower, with an annual interest rate of 12 %.

2022 Other Real Estate Related Investment Transactions

In June 2022, the Company extended a $ 75.0 million term loan to a skilled nursing real estate owner as part of a larger, multi-tranche, senior secured term loan facility.

The senior secured term loan was structured with an “A” tranche, a “B” tranche, and a “C” tranche (with the “C” tranche being the most subordinate).

The Company’s $ 75.0 million term loan constituted the entirety of the “C” tranche with its payments subordinated accordingly.

The senior secured term loan facility is secured by an 18 -facility skilled nursing portfolio in the Mid-Atlantic region, operated by a large, regional skilled nursing operator.

In connection with the senior secured term loan facility and the borrower’s acquisition of the skilled nursing portfolio, the Company also extended to the borrower group a $ 25.0 million mezzanine loan.

The “C” tranche of the senior secured term loan bears interest at 8.5 %, less a servicing fee equal to the positive difference, if any, between the lesser of the contractual interest payment and actual payment of interest made by the borrower and a hypothetical interest payment at a rate of 8.25 %, resulting in an effective interest rate of 8.375 %.

The “C” tranche senior secured term loan is set to mature on June 30, 2027 and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date for an exit fee ranging from 1 % to

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3 % of the loan plus unpaid interest payments through the end of the month of prepayment;

provided, however, that no exit fee is payable in connection with portions of the loan being refinanced pursuant to a loan (or loans) provided by or insured by HUD, Federal Housing Administration, or a similar governmental authority.

The mezzanine loan bears interest at 11 % and is secured by a pledge of membership interests in an up-tier affiliate of the borrower group.

The mezzanine loan is set to mature on June 30, 2032, and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date, commencing on June 30, 2029, for an exit fee ranging from 1 % to 3 % of the loan plus unpaid interest payments through the date of prepayment.

The “C” tranche senior secured term loan and mezzanine loan both require monthly interest payments.

The Company elected the fair value option for both the “C” tranche term loan and the mezzanine loan.

In August 2022, the Company extended a $ 22.3 million term loan as part of a larger, multi-tranche real estate secured term loan facility to a skilled nursing real estate owner.

The secured term loan was structured with an “A” and a “B” tranche (with the payments on the “B” tranche being subordinate to the “A” tranche pursuant to the terms of a written agreement between the lenders).

The Company’s $ 22.3 million secured term loan constituted the entirety of the “B” tranche with its payments subordinated accordingly.

The secured term loan is primarily secured by five skilled nursing facilities, four of which are operated by an existing operator and one of which is operated by a large, regional skilled nursing operator.

The “B” tranche secured term loan is set to mature on August 1, 2025, with two one-year extension options and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date for an exit fee ranging from 2 % to 3 % of the loan plus unpaid interest payments;

The "B" tranche secured term loan bears interest at a rate based on term secured overnight financing rate, calculated as a fraction, with the numerator being the difference between (i) the monthly payment of interest of term SOFR plus a 4.25 % spread and (ii) the amount of such monthly payment of interest of term SOFR plus a 2.75 % spread, and with the denominator being the average daily balance of the outstanding principal amount during the applicable month, with such fraction expressed as a percentage and annualized, with a term SOFR floor of 1.0 % and less a subservicing fee of 50 % over 8.25 %.

The “B” tranche secured term loan requires monthly interest payments.

The Company elected the fair value option for the “B” tranche secured term loan.

In December 2023, in accordance with the terms and conditions set forth in the loan agreement, the borrower elected to cause one of the skilled nursing facilities to be released from the loan, and in connection with the same, the borrower partially prepaid the loan in the amount of $ 10.5 million and in December 2024, the borrower elected to cause another skilled nursing facility to be released from the loan and partially prepaid the loan in the amount of $ 4.4 million.

In September 2022, the Company extended a $ 24.9 million term loan as part of a larger, multi-tranche real estate secured term loan facility to a skilled nursing real estate owner.

The Company’s $ 24.9 million secured term loan constituted the entirety of the “B” tranche with its payments subordinated accordingly.

The secured term loan is primarily secured by four skilled nursing facilities operated by an operator in the Southeast.

The “B” tranche secured term loan is set to mature on September 8, 2025, with two one-year extension options and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date for an exit fee ranging from 1 % to 3 % of the loan plus unpaid interest payments;

provided, however, that no exit fee is payable in connection with portions of the loan being refinanced pursuant to a loan (or loans) provided by or insured by the United States Department of Housing and Urban Development, Federal Housing Administration, or a similar governmental authority.

The “B” tranche secured term loan provides for an earn-out advance of $ 4.7 million if certain conditions are met.

During the fourth quarter of 2024, the conditions for the earn-out were met and the $ 4.7 million was funded.

The "B" tranche secured term loan bears interest at a rate based on term SOFR, calculated as a fraction, with the numerator being the difference between (i) the monthly payment of interest of term SOFR plus a 4.50 % spread and (ii) the amount of such monthly payment of interest of term SOFR plus a 2.85 % spread, and with the denominator being the average daily balance of the outstanding principal amount during the applicable month, with such fraction expressed as a percentage and annualized, with a term SOFR floor of 1.0 % and less a subservicing fee of 100 % over 9.00 %.

The “B” tranche secured term loan requires monthly interest payments.

The Company elected the fair value option for the “B” tranche secured term loan.

Preferred Equity Investments

On June 5, 2025, the Company funded a $ 30.0 million preferred equity investment in a skilled nursing real estate owner.

The Company’s initial contractual yield on its preferred equity investment is 12 %.

Prepayment of the preferred equity investment is restricted, subject to certain conditions.

On August 1, 2024, the Company funded a $ 43.0 million preferred equity investment in an uptier holding company of the borrowers under the $ 260.0 million mortgage loan described above under “ 2024 Other Real Estate Related Investment Transactions.” The Company's initial contractual yield on its preferred equity investment is 11 %.

On June 3, 2024, the Company funded a $ 9.0 million preferred equity investment in an uptier parent entity of the borrower under the $ 165.0 million mortgage loan described above under “ 2024 Other Real Estate Related Investment Transactions.” The Company's initial contractual yield on its preferred equity investment is 11 %.

Prepayment of the preferred equity investment is restricted, subject to certain carveouts, prior to the senior mortgage loan being paid off in full.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In December 2023, the Company completed a $ 1.8 million preferred equity investment in E3 Acquisition, LLC, which owns the borrowers under the $ 3.6 million mortgage loan noted above under “ 2023 Other Real Estate Related Investment Transactions.” The preferred equity investment yields a return of 15 % calculated on the outstanding carrying value of the investment.

3 unchanged sentences

In connection with the transaction, the Company entered into a new triple-net master lease with Cascade and provided Cascade with options to repurchase the properties, structured over multiple tranches, with various option window start dates, beginning December 1, 2024, and open through the remainder of the 15-year term.

As such, the Company determined that the sale and leaseback transaction met the accounting criteria to be presented as a financing receivable on its consolidated balance sheets and recorded interest income from financing receivable on its consolidated statements of operations.

Interest income is based on an imputed interest rate over the term of the applicable financing arrangement and as a result the interest recognized in any particular period will not equal the cash payments from the agreement in that period.

Cash received from the financing receivable was $ 0.7 million during the year ended December 31, 2024.

In the year ended December 31, 2025, Cascade exercised one of its purchase options with respect to three facilities, reducing the outstanding principal of the financing receivable by approximately $ 4.4 million.

Cash interest received from the financing receivable was $ 10.9 million and $ 0.7 million during the years ended December 31, 2025 and 2024.

The Company elected the fair value option for the financing receivable.

2 unchanged sentences

As of December 31, 2025

As of December 31, 2024

Investment Principal Balance as of December 31, 2025

Book Value as of December 31, 2025

Principal Balance as of December 31, 2024

Book Value as of December 31, 2024

Weighted Average Contractual Interest Rate Maturity Date

Weighted Average Contractual Interest Rate Weighted Average Contractual Interest Rate Maturity Date

Other loans receivable $ 29,509 $ 30,217 $ 21,979 $ 22,010 8.4 % 9.0 % 6/1/2026 - 12/31/2030

1 unchanged sentence

Total $ 29,509 $ 23,223 $ 21,979 $ 15,016

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the Company’s other loans receivable activity for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands):

1 unchanged sentence

Origination of loans receivable $ 1,762 $ 4,985 $ 8,486

Assumption of other loans receivable in connection with the Acquisition (1)

Principal payments ( 1,222 ) ( 100 ) ( 988 )

Accrued interest, net 677 ( 31 ) 58

Provision for loan losses, net ( 4,900 ) — ( 3,844 )

Net (decrease) increase in other loans receivable $ ( 46 ) $ 7,556 $ 4,345

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Expected credit losses and recoveries are recorded in provision for loan losses, net in the consolidated statements of operations.

Provision for loan losses — ( 4,900 ) —

Net increase (decrease) in other loans receivable $ 8,207 $ ( 46 ) $ 7,556

(1) In connection with the Acquisition, the Company assumed other loans receivable, including one for $ 6.7 million related to the development of a U.K.

Upon certain conditions being met, a put option by the operator or a call option by the Company may each be exercised providing for the Company’s acquisition of the development for an additional $ 3.6 million.

If these options are not exercised the loan becomes repayable in June 2026.

Expected credit losses and recoveries are recorded in provision for loan losses in the consolidated income statements.

During the year ended December 31, 2025, the Company had no additional expected credit loss and did not consider any loans receivable investment to be impaired.

During the year ended December 31, 2024, the Company recorded a $ 4.9 million expected credit loss related to one other loan receivable with a principal balance of $ 4.9 million that has been placed on non-accrual status.

During the year ended December 31, 2023, the Company had no additional expected credit loss and did not consider any loan receivable investments to be impaired.

During the year ended December 31, 2022, the Company recorded a $ 4.6 million expected credit loss related to two other loans receivable that have been placed on non-accrual status, including an unfunded loan commitment of $ 0.4 million, net of a loan loss recovery of $ 0.8 million related to a loan previously written-off.

During the year ended December 31, 2022, the Company fully reserved and wrote-off $ 2.5 million, related to one other loan receivable, in connection with the sale of six SNFs and one multi-service campus.

The following table summarizes the interest and other income recognized from the other real estate related investments, other loans receivable, and other investments during the years ended December 31, 2025, 2024 and 2023 ( dollars in thousands):

8 unchanged sentences

Total $ 106,974 $ 68,025 $ 19,171

(1) Other income is comprised primarily of interest income on money market funds.

(1) Other income is comprised of interest income on money market funds and escrow deposits.

DERIVATIVES AND HEDGING

The Company estimates the fair value of derivative instruments, including its interest rate caps, swaps and foreign currency forwards, using the assistance of a third party using inputs that are observable in the market, which include forward yield curves and other relevant information.

In connection with the Acquisition, the Company assumed Care REIT’s two outstanding interest rate caps with an aggregate £ 100.0 million in notional value to mitigate the interest rate risk of the variable rate secured revolving credit facilities.

The interest rate derivatives were not designated as a hedge in qualifying hedging relationships.

In July 2025, the Company paid off its variable rate secured revolving credit facilities and terminated the interest rate cap instruments associated with them.

See Note 9, Debt , for additional information.

The Company recorded a $ 0.2 million net gain in interest expense related to the interest rate caps during the year ended December 31, 2025.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In June 2025, the Company entered into four foreign currency forward contracts with £ 31.0 million in notional value issued at a weighted average GBP-USD exchange rate of 1.34 that are designated as cash flow hedges.

The Company entered into cash flow hedges to hedge the foreign currency risk of intercompany loans denominated in GBP.

On July 10, 2025, the Company entered into two interest rate swaps, with a notional amount of $ 250.0 million each, to hedge the variable cash flows associated with the Term Loan Facility (as defined below).

The interest rate swaps convert the Term Loan Facility’s Term SOFR rate to an effective fixed interest rate of 3.5 %.

The Company’s objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps.

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the term of the agreements without exchange of the underlying notional amount.

The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2025:

Derivative Notional Amount (in thousands)

Maturity or Settlement Date Index Strike Rate Fair Value as of December 31, 2025 (in thousands)

Cash flow hedge £ 7,656 March 2026 GBP-USD exchange rate $ 1.34 ( 67 )

Cash flow hedge £ 7,741 June 2026 GBP-USD exchange rate $ 1.34 ( 67 )

Interest rate swap $ 250,000 June 2028 USD-SOFR 3.5 % ( 1,543 )

The table below presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss) for the year ended December 31, 2025 (dollars in thousands):

Gain (loss) recognized in Other Comprehensive Income (Loss) Gain (loss) reclassified from Accumulated Other Comprehensive Income (Loss) into Income Income Statement Location

For the year ended December 31, 2025

Cash flow hedge $ 276 $ ( 142 ) Gain/loss on foreign currency transaction

Interest rate swap 1,438 1,648 Interest expense

$ 1,714 $ 1,506

The Company estimates that an additional $ 0.7 million will be reclassified from accumulated other comprehensive income as a net increase to interest expense and $ 0.1 million will be reclassified from accumulated other comprehensive income to loss on foreign currency transactions over the next 12 months.

FAIR VALUE MEASUREMENTS

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The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

In instances where the determination of the fair value measurement is based on inputs

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company evaluates its hierarchy disclosures each quarter and, depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

1 unchanged sentence

The Company does not expect that changes in classifications between levels will be frequent.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Items Measured at Fair Value on a Recurring Basis

4 unchanged sentences

Financing receivable — — 92,193 92,193

Total $ — $ — $ 837,008 $ 837,008

Total assets $ — $ — $ 885,143 $ 885,143

Cash flow hedges $ — $ 3,220 $ — $ 3,220

Total liabilities $ — $ 3,220 $ — $ 3,220

Level 1 Level 2 Level 3 Balance as of December 31, 2024

1 unchanged sentence

Mezzanine loans receivable — — 80,612 80,612

Financing receivable — — 96,004 96,004

Total $ — $ — $ 837,008 $ 837,008

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Accrued interest, net 447 ( 285 ) 632

Unrealized gains on other real estate related investments, net 8,154 891 —

Unrealized gain, net 14,721 1,459 —

Payments ( 38,901 ) ( 35,000 ) ( 4,443 )

6 unchanged sentences

Future changes in market interest rates or collateral value could materially impact the estimated discounted cash flows that are used to determine the fair value of the secured and mezzanine loans receivable.

During the year ended December 31, 2023, the Company recorded a net unrealized loss of $ 6.5 million on the Company’s secured and mezzanine loans receivable due to rising interest rates, an origination fee paid, a reversal of a previously recognized unrealized loss related to the repayment of one mezzanine loan receivable, and the partial repayment of one mortgage loan receivable.

During the year ended December 31, 2024, the Company recorded a net unrealized gain of $ 9.0 million on its secured and mezzanine loans receivable, to bring the interest rates in line with market rates.

As of December 31, 2025 and 2024, the Company did not have any loans that were 90 days or more past due.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in secured and mezzanine loans receivables as of December 31, 2025 :

3 unchanged sentences

Mezzanine loan receivable 56,476 Discounted cash flow Discount Rate 10 % - 13 %

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Derivative instruments:

Financing receivable:

The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows.

The discount rate used to value the future cash inflows of the financing receivable at December 31, 2024 was 12.0 %.

For the year ended December 31, 2024, there were no classification changes in assets and liabilities with Level 3 inputs in the fair value hierarchy.

The discount rate used to value the future cash inflows of the financing receivable at both December 31, 2025 and 2024 was 12.0 %.

For the years ended December 31, 2025 and 2024, there were no classification changes in assets and liabilities with Level 3 inputs in the fair value hierarchy.

Items Measured at Fair Value on a Non-Recurring Basis

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The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.

A summary of the face value, carrying amount and fair value of the Company’s preferred equity investments and the Notes (as defined in Note 7, Debt , below) as of December 31, 2024 and 2023 using Level 2 inputs is as follows (dollars in thousands):

A summary of the face value, carrying amount and fair value of the Company’s preferred equity investments and the Notes (as defined in Note 9, Debt , below) as of December 31, 2025 and 2024 is as follows (dollars in thousands):

December 31, 2025 December 31, 2024

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As such, the Company classifies these instruments as Level 3.

Loan receivable, at amortized cost:

The carrying value of the loan receivable at amortized cost approximates fair value due to the short-term nature of this instrument.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Senior unsecured notes payable :

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The fair values approximate their carrying values as the interest rates are variable and approximate prevailing market interest rates and spreads for similar debt arrangements.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the balance of the Company’s indebtedness as of December 31, 2025 and 2024 (dollars in thousands):

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Senior unsecured term loan 500,000 ( 3,596 ) 496,404 — — —

Unsecured revolving credit facility (1)

$ 400,000 $ ( 3,073 ) $ 396,927 $ 600,000 $ ( 4,402 ) $ 595,598

(1) Deferred financing fees are included in deferred financing costs, net on the balance sheet, and not reflected as a reduction to the unsecured revolving credit facility.

Total $ 900,000 $ ( 5,780 ) $ 894,220 $ 400,000 $ ( 3,073 ) $ 396,927

Senior Unsecured Notes Payable

2028 Senior Notes.

On June 17, 2021, the Company’s wholly owned subsidiary, CTR Partnership, L.P.

On June 17, 2021, the Company’s operating subsidiary, CTR Partnership, L.P.

(the “Operating Partnership”), and its wholly owned subsidiary, CareTrust Capital Corp.

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As of December 31, 2025, the Company was in compliance with all applicable financial covenants under the indenture governing the Notes.

Unsecured Revolving Credit Facility and Term Loan

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender (as amended from time to time, the “Third Amended Credit Agreement”).

The Third Amended Credit Agreement, which amends and restates the Second Amended Credit Agreement (as defined below) provides for an upsized unsecured revolving credit facility (the “Third Amended Revolving Facility”) with revolving commitments in an aggregate principal amount of $ 1.2 billion, including a letter of credit subfacility for 10 % of the then available revolving commitments and a swingline loan subfacility for 10 % of the then available revolving commitments.

Unsecured Revolving Credit Facility and Term Loan

On December 18, 2024, the Operating Partnership, as the borrower, the Company, as guarantor, CareTrust GP, LLC, and certain of the Operating Partnership’s wholly owned subsidiaries, entered into a third amended and restated credit and guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender (as amended from time to time, the “Third Amended Credit Agreement”).

The Third Amended Credit Agreement, which amended and restated the Second Amended Credit Agreement (as defined below) provides for an upsized unsecured revolving credit facility (the “Third Amended Revolving Facility”) with revolving commitments in an aggregate principal amount of $ 1.2 billion, including a letter of credit subfacility for 10 % of the then available revolving commitments and a swingline loan subfacility for 10 % of the then available revolving commitments.

Future borrowings under the Third Amended Revolving Facility will be used for working capital purposes, for capital expenditures, to fund acquisitions and for general corporate purposes.

On May 30, 2025, the Operating Partnership entered into a first amendment to the Third Amended Credit Agreement (the “First Amendment to the Third Amended Credit Agreement”).

The First Amendment to the Third Amended Credit Agreement provides for an unsecured term loan facility (the “Term Loan Facility”) with term loan commitments in an aggregate principal amount of $ 500.0 million in addition to the Third Amended Revolving Facility.

On January 14, 2026, the Operating Partnership entered into a second amendment to the Third Amended Credit Agreement (the “Second Amendment to the Third Amended Credit Agreement”).

The Second Amendment to the Third Amended Credit Agreement amended the definition of Permitted Encumbrances to include liens on assets located in the United Kingdom or on equity interests of any person owning such assets, in each case, securing intercompany loans.

On December 16, 2022, the Operating Partnership, as the borrower, the Company, as guarantor, CareTrust GP, LLC, and certain of the Operating Partnership’s wholly owned subsidiaries, entered into a second amended and restated credit and guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender (as amended from time to time, the “Second Amended Credit Agreement”).

The Second Amended Credit Agreement, which amends and restates the Company’s amended and restated credit and guaranty agreement, dated as of February 8, 2019 (as amended, the “Prior Credit Agreement”) provided for:

The Second Amended Credit Agreement, which amended and restated the Company’s amended and restated credit and guaranty agreement, dated as of February 8, 2019 (as amended, the “Prior Credit Agreement”) provided for:

(i) an unsecured revolving credit facility (the “Prior Revolving Facility”) with revolving commitments in an aggregate principal amount of $ 600.0 million, including a letter of credit subfacility for 10 % of the then available revolving commitments and a swingline loan subfacility for 10 % of the then available revolving commitments and (ii) the continuation of the unsecured term loan credit facility which was previously extended under the Prior Credit Agreement (the “Term Loan” and together with the Prior Revolving Facility, the “Second Amended Credit Facility”) in an aggregate principal amount of $ 200.0 million.

Future borrowings under the Second Amended Credit Facility will be used for working capital purposes, for capital expenditures, to fund acquisitions and for general corporate purposes.

On October 10, 2023, the Operating Partnership, the Company, CareTrust GP, LLC, certain of the Operating Partnership’s wholly owned subsidiaries and KeyBank National Association entered into the First Amendment to the Second Amended Credit Agreement (the “First Amendment”).

The First Amendment restates the definition of Consolidated Total Asset Value to include net proceeds from at-the-market forward commitments executed but not yet closed as of the relevant date as if such proceeds had actually been received.

The interest rates applicable to loans under the Third Amended Revolving Facility are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.05 % to 0.55 % per annum or Adjusted Term SOFR or Adjusted Daily Simple SOFR (each as defined in the Third Amended Credit Agreement) plus a margin ranging from 1.05 % to 1.55 % per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt).

The interest rates applicable to loans under the Term Loan were, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.50 % to 1.20 % per annum or Adjusted Term SOFR or Adjusted Daily Simple SOFR plus a margin ranging from 1.50 % to 2.20 % per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt).

In addition, the Operating Partnership will pay a facility fee on the revolving commitments under the Third Amended Revolving Facility ranging from 0.15 % to 0.35 % per annum, based on the debt to asset value ratio of the Company and its consolidated subsidiaries (unless the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt and the Operating Partnership elects to decrease the applicable margin as described above, in which case the Operating Partnership will pay a facility fee on the revolving commitments ranging from 0.125 % to 0.30 % per annum based on the credit ratings of the Company’s senior long-term unsecured debt).

On September 19, 2024 (the “Prepayment Date”), the Company elected to prepay all $ 200.0 million aggregate principal amount of their outstanding Term Loan.

The First Amendment restated the definition of Consolidated Total Asset Value to include net proceeds from at-the-market forward commitments executed but not yet closed as of the relevant date as if such proceeds had actually been received.

The interest rates applicable to loans under the Third Amended Revolving Facility are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.05 % to 0.55 % per annum or Term SOFR or Daily Simple SOFR (each as defined in the Third Amended Credit Agreement) plus a margin ranging from 1.05 % to 1.55 % per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt).

The interest rates applicable to loans under the Term Loan Facility are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.10 % to 0.80 % per annum or Term SOFR or Daily Simple SOFR (each as defined in the Third Amended Credit Agreement) plus a margin ranging from 1.10 % to 1.80 % per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if we obtain certain specified investment grade ratings on its senior long-term unsecured debt).

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

facility fee on the revolving commitments ranging from 0.125 % to 0.30 % per annum based on the credit ratings of the Company’s senior long-term unsecured debt).

On September 19, 2024 (the “Prepayment Date”), the Company elected to prepay all $ 200.0 million aggregate principal amount of the outstanding Term Loan.

The Term Loan was prepaid at the principal amount of the Term Loan, plus accrued and unpaid interest thereon up to, but not including, the Prepayment Date.

During the year ended December 31, 2024, the Company recorded a loss on extinguishment of debt of $ 0.3 million related to the write-off of deferred financing costs associated with the prepayment of the Term Loan.

As of December 31, 2024, the Operating Partnership had no borrowings outstanding under the Third Amended Revolving Facility.

As of December 31, 2025, the Operating Partnership had $ 500.0 million of borrowings outstanding under the Term Loan Facility and no borrowings outstanding under the Third Amended Revolving Facility.

The Third Amended Revolving Facility has a maturity date of February 9, 2029, and includes, at the sole discretion of the Operating Partnership, two six-month extension options.

The Term Loan Facility has a maturity date of May 30, 2030.

The Third Amended Credit Facility is guaranteed, jointly and severally, by the Company and its wholly owned subsidiaries that are party to the Third Amended Credit Agreement (other than the Operating Partnership).

The Third Amended

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend organizational documents and pay certain dividends and other restricted payments.

The Third Amended Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend organizational documents and pay certain dividends and other restricted payments.

The Third Amended Credit Agreement requires the Company to comply with financial maintenance covenants to be tested quarterly, consisting of a maximum debt to asset value ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, a maximum secured debt to asset value ratio, a maximum unsecured debt to unencumbered properties asset value ratio and a minimum unsecured interest coverage ratio.

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On July 30, 2024, the Company exercised the call option on the $ 75.0 million secured borrowing and recorded a loss on extinguishment of debt of $ 0.4 million related to the exit fee.

The exit fee is included in loss on extinguishment of debt in the consolidated statements of operations.

The exit fee is included in loss on extinguishment of debt in the consolidated income statements.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Debt Assumed in Connection with the Acquisition and Subsequently Paid Off

On May 8, 2025, upon consummation of the Acquisition, the Company assumed secured revolving credit facilities and secured notes payable with an outstanding balance of $ 154.0 million and $ 99.8 million, respectively.

The terms of the debt were as follows:

Clydesdale Bank PLC (“Virgin”) HSBC UK Bank Plc (“HSBC”) National Westminster Bank Plc (“NatWest”) Secured notes payable (tranche A) Secured notes payable (tranche B)

Facility Type Revolving credit facility Revolving credit facility Revolving credit facility Private placement Private placement

Maturity date December 2029 April 2026 June 2029 December 2035 June 2035

Base rate SONIA SONIA SONIA N/A N/A

2.00 % 2.00 % 2.00 % N/A N/A

Fixed interest rate N/A N/A N/A 2.93 % 3.00 %

(1) SONIA used at time of prepayment was 4.22 %.

On July 8, 2025, the Company repaid in full the secured notes payable.

The aggregate payoff amount of £ 75.5 million consisted of outstanding principal of £ 75.0 million and accrued and unpaid interest of approximately £ 0.5 million.

On July 31, 2025, the Company repaid in full and terminated the secured revolving credit facilities.

The aggregate payoff amount of £ 116.5 million consisted of outstanding principal of £ 115.8 million, accrued and unpaid interest of approximately £ 0.4 million and a prepayment penalty of £ 0.3 million.

In connection with the payoff of the secured revolving credit facilities, the Company terminated the interest rate caps associated with this variable rate debt.

See Note 7, Derivatives And Hedging , for additional information.

Schedule of Debt Maturities

As of December 31, 2024, the Company’s debt maturities were (dollars in thousands):

EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

Public Offering of Common Stock —On November 1, 2024, the Company completed an underwritten public offering of 15.9 million newly issued shares of its common stock at a price of $ 32.00 , resulting in gross proceeds of $ 507.8 million.

The proceeds were used to fund acquisitions during the fourth quarter of 2024.

At-The-Market Offering —On August 29, 2024, the Company entered into a new equity distribution agreement to issue and sell, from time to time, up to $ 750.0 million in aggregate offering price of its common stock through an “at-the-market” equity offering program (the “New ATM Program”) and terminated its previous $ 500.0 million “at-the-market” equity offering program (together, with all previous at-the-market equity offering programs, the “Previous ATM Programs” and together with the New ATM Program, the “ATM Program”).

In addition to the issuance and sale of shares of its common stock, the ATM Program also provides for the ability to enter into one or more forward sales agreements (each, an “ATM forward contract”) with sales agents for the sale of the Company’s shares of common stock under the ATM Program.

The following is a schedule of maturities for the Company’s outstanding debt as of December 31, 2025 (dollars in thousands):

Year Term Loan Senior Unsecured Notes Total

2026 $ — $ — $ —

2028 — 400,000 400,000

2030 500,000 — 500,000

Thereafter — — —

Total Debt $ 500,000 $ 400,000 $ 900,000

As of December 31, 2025, the weighted average interest rate of the Company’s debt was 4.29 %, inclusive of the effects of interest rate swap agreements.

EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

Public Offering of Common Stock —On August 14, 2025, the Company completed an underwritten public offering of 23.0 million newly issued shares of its common stock at a price per share of $ 32.00 , resulting in gross proceeds of $ 736.0 million.

The Company used a portion of the proceeds to pay down the outstanding revolving credit facility and intends to use the remaining proceeds to fund acquisitions.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company expects to fully physically settle forward equity sales by delivery of shares of common stock to the forward purchaser and receive cash proceeds upon one or more settlement dates, which are typically a one-year term, at the Company’s discretion, prior to the final settlement date, at which time the Company expects to receive aggregate net cash proceeds at settlement equal to the number of shares sold on a forward basis multiplied by the relevant forward price per share.

The weighted average forward sale price that the Company expects to receive upon physical settlement will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends through the settlement.

There were no outstanding ATM forward contracts that had not settled as of December 31, 2024.

At-The-Market Offering —On January 21, 2025, the Company entered into a new equity distribution agreement to issue and sell, from time to time, up to $ 750.0 million in aggregate offering price of its common stock through an “at-the-market” equity offering program (the “New ATM Program”) and terminated its previous $ 750.0 million “at-the-market” equity offering program (together, with all previous at-the-market equity offering programs, the “Previous ATM Programs” and together with the New ATM Program, the “ATM Program”).

In the event the Company enters into an ATM forward contract to sell shares of common stock pursuant to the ATM Program, the Company would expect to fully physically settle forward equity sales by delivery of shares of common stock to the forward purchaser and receive cash proceeds upon one or more settlement dates, which are typically a one-year term, at the Company’s discretion, prior to the final settlement date, at which time the Company would expect to receive aggregate net cash proceeds at settlement equal to the number of shares sold on a forward basis multiplied by the relevant forward price per share.

The weighted average forward sale price that the Company would expect to receive upon physical settlement would be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends through the settlement.

During the year ended December 31, 2025, the Company entered into ATM forward contracts under the ATM Program with a financial institution acting as a forward purchaser to sell 6.5 million shares of common stock at a weighted average initial sales price of $ 37.30 per share, before commissions and offering expenses.

For the shares subject to the ATM forward contracts, the Company will not receive any proceeds from sales of those shares of common stock by the forward sellers until the forward contracts are settled.

The following tables summarize ATM Program activity (or activity under any predecessor at-the-market equity offering programs) for the years ended December 31, 2025, 2024 and 2023 (in thousands, except per share amounts):

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Dividends payable as of record date $ 41,192 $ 44,721 $ 49,721 $ 54,388

$ 27,846 $ 27,853 $ 32,403 $ 36,531

Dividends record date March 28, 2024 June 28, 2024 September 30, 2024 December 31, 2024

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(1) Dividends payable includes dividends on performance stock awards that will be paid if and when the shares subject to such awards vest if deemed probable of meeting their performance condition.

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interests

Arrangements with noncontrolling interest holders are assessed for appropriate balance sheet classification based on the redemption and other rights held by the noncontrolling interest holder.

One of the Company’s noncontrolling interest holders has the ability to put its equity interest to the Company during specified option exercise periods, subject to certain conditions.

The put option is payable in cash and subject to changes in redemption value.

Accordingly, the Company records the redeemable noncontrolling interest outside of permanent equity.

The redeemable noncontrolling interest is adjusted for additional contributions and distributions and the proportionate share of the net earnings or losses.

In addition to the rights of the redeemable noncontrolling interest holder, the Company has the ability to call the interest of the noncontrolling interest holder during specified option exercise periods.

As of December 31, 2024, the redeemable noncontrolling interest did not meet the conditions for redemption.

Two of the Company’s noncontrolling interest holders have the ability to put their equity interests to the Company during specified option exercise periods, subject to certain conditions.

The put options are payable in cash and subject to changes in redemption value.

Accordingly, the Company records the redeemable noncontrolling interests outside of permanent equity.

The redeemable noncontrolling interests are adjusted for additional contributions and distributions and the proportionate share of the net earnings or losses.

As of December 31, 2025, the redeemable noncontrolling interests did not meet the conditions for redemption.

STOCK-BASED COMPENSATION

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under the Plan, restricted stock awards (“RSAs”) vest in equal annual installments over a three year period for the RSAs granted after 2020 and a four year period for the RSAs granted in 2020.

Under the Plan and for the periods presented, restricted stock awards (“RSAs”) typically vest in equal annual installments over a three year period.

The board of directors granted certain RSAs in 2025 (“2025 RSAs”) which vest in one installment over one year .

RSAs granted to non-employee members of the board of directors (“Board Awards”) vest in full on the earlier to occur of the Company’s next Annual Meeting of Stockholders or one year .

Performance stock awards (“PSAs”) granted were subject to both time and performance based conditions and vest over a one -to three year period for PSAs granted in 2021 and over a one -to- four year period for PSAs granted in 2020.

Performance stock awards (“PSAs”) granted were subject to both time and performance based conditions and vest over a one -to three year period for PSAs granted in 2021.

The amount of such PSAs that ultimately vested was dependent on the Company’s Normalized Funds from Operations (“NFFO”) per share, as defined by the Compensation Committee, meeting or exceeding a specified per share amount for the applicable vesting period.

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The amount of such market awards that will ultimately vest is dependent on the Company’s total shareholder return (“TSR”) performance relative to a custom TSR peer group consisting of other publicly traded healthcare REITs and will range from 0 % to 200 % of the TSR Units initially granted.

The RSAs, PSAs, and Board Awards are valued on the date of grant based on the closing price of the Company’s common stock, while the TSR Units are valued on the date of grant using a Monte Carlo valuation model.

The RSAs and Board Awards are valued on the date of grant based on the closing price of the Company’s common stock, while the TSR Units are valued on the date of grant using a Monte Carlo valuation model.

The vesting of certain awards may accelerate, as defined in the grant agreement, upon retirement, a change in control or other events.

The following table summarizes the status of the restricted stock award and performance award activity for the year ended December 31, 2024:

The following table summarizes the status of the restricted stock award activity for the year ended December 31, 2025:

Shares Weighted Average Share Price

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Vested ( 167,663 ) 21.52

Forfeited ( 35,161 ) 20.48

Unvested balance at December 31, 2025 553,979 $ 25.67

As of December 31, 2024, the weighted-average remaining vesting period of such awards was 1.9 years.

As of December 31, 2025, the weighted-average remaining vesting period of such awards was 1.0 year.

The following table summarizes the Company’s RSA and Board Award grants during the year ended December 31, 2025 (dollars in thousands, except per share amounts):

4 unchanged sentences

Board Awards 20,148 28.79 580 21,712 610

(1) The Compensation Committee granted annual awards for 2025 in December 2024.

(1) The Compensation Committee granted annual awards for 2026 in January 2026.

CARETRUST REIT, INC.

16 unchanged sentences

For the Year Ended December 31, 2024

For the Year Ended December 31, 2023 For the Year Ended December 31, 2022

For the Year Ended December 31, 2023

Risk-free interest rate 4.30 % 4.08 %

Expected stock price volatility 24.45 % 26.44 %

Expected service period 3.03 years 3.04 years 3.04 years

Expected service period 3.03 years 3.04 years

Expected dividend yield (assuming full reinvestment) — % — %

Weighted average fair value per share at date of grant $ 34.10 $ 27.41

The total fair value of the TSR Units granted during the years ended December 31, 2024, 2023 and 2022 was $ 4.9 million, $ 2.9 million and $ 2.5 million, respectively.

The total fair value of the TSR Units granted during the years ended December 31, 2024 and 2023 was $ 4.9 million and $ 2.9 million, respectively.

The following table summarizes the stock-based compensation expense recognized (dollars in thousands):

For Year Ended December 31,

For the Year Ended December 31,

2025 2024 2023

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

EARNINGS (LOSS) PER COMMON SHARE

The following table presents the calculation of basic and diluted earnings (loss) per common share attributable to CareTrust REIT, Inc.

The Company elected to be taxed as a REIT for U.S.

federal income tax purposes beginning with the taxable year ended December 31, 2014.

To maintain REIT status, the Company must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gains.

In addition, the Company is required to meet certain asset and income tests.

As a REIT, the Company generally will not be subject to corporate level federal income tax on taxable income that it distributes to its stockholders.

The Company also elected to treat certain of its consolidated subsidiaries as taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes.

In addition, as a result of our investments in the U.K., the Company is subject to income taxes under the laws of the U.K.

Cash distributions paid to common stockholders for federal income tax purposes are as follows for the periods presented:

Year Ended December 31,

Common Stock 2025 2024 2023

Ordinary dividend $ 1.2950 $ 0.8529 $ 0.8218

Non-dividend distributions — 0.2971 0.2932

Total taxable distribution 1.2950 1.1500 1.1150

Distributions allocated from prior tax year (1)

( 0.2900 ) ( 0.2800 ) ( 0.2750 )

Distributions allocated to subsequent tax year (1)

0.3350 0.2900 0.2800

Total distributions declared $ 1.3400 $ 1.1600 $ 1.1200

(1) The dividend distributions made to holders of record as of the end of each year and paid in January of the following year were considered a dividend distribution in the following year for federal income tax purposes.

REITs generally are not subject to U.S.

federal income taxes on that portion of REIT taxable income or capital gain that is distributed to stockholders.

For the tax year ended December 31, 2025, as a result of ownership of investments in a TRS and the U.K., the Company was subject to federal, state and foreign income taxes under the respective tax laws of these jurisdictions.

The following table summarizes pretax income and income tax expense by geography for continuing operations for the period presented (dollars in thousands):

For the Year Ended December 31, 2025

Pretax income

Income tax expense

$ 316,553 $ 19

$ 325,287 $ 5,001

The following table summarizes the Company’s income tax expense (benefit) from continuing operations for the period presented (dollars in thousands):

For the Year Ended December 31, 2025

Income tax expense

Current - Federal

Current - State

Deferred - Federal

Deferred - Foreign

Total income tax expense (benefit) $ 5,001

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation of income taxes, which is computed by applying the federal corporate tax rate for the year ended December 31, 2025, to the income tax expense (benefit) is as follows for the period presented (in thousands):

For Year Ended December 31,

Tax at statutory rate on earnings from continuing operations before, noncontrolling interests and income taxes $ 68,310 21.0 %

Tax at statutory rate on earnings not subject to federal income taxes ( 83,602 ) ( 25.7 ) %

Other differences 20,293 6.2 %

$ 5,001 1.5 %

Each TRS and foreign entity subject to income taxes is a tax paying component for purposes of classifying deferred tax assets and liabilities.

The tax effects of taxable and deductible temporary differences, as well as tax asset and liability attributes, are summarized as follows for the period presented (in thousands):

As of December 31,

Deferred tax assets (liabilities):

Foreign net operating loss carryforward $ 1,395

Investment in partnerships 53

Valuation allowance on deferred tax asset ( 1,395 )

Net deferred tax assets 53

Deferred tax related to investment in foreign subsidiary ( 5,558 )

Net deferred tax liability ( 5,558 )

Net deferred tax assets (liabilities) $ ( 5,505 )

The Company intends to only distribute from its subsidiary UK REIT the minimum amount required to maintain its REIT status in the U.K.

The Company intends to indefinitely reinvest the UK REIT’s remaining undistributed earnings and, accordingly, has not recorded a U.S.

deferred tax liability related to the withholding tax on those earnings.

The Company has recorded valuation allowances totaling $ 1.4 million.

The Company evaluates its deferred tax assets each period to determine if a valuation allowance is required based on whether it is ‘more likely than not’ that some portion of the deferred tax assets would not be realized.

This evaluation requires significant judgment and changes to our assumptions could result in a material change in the valuation allowance.

The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods.

The Company conducts its evaluation by considering, among other things, all available positive and negative evidence, historical operating results and cumulative earnings analysis, forecasts of future profitability, and the duration of statutory carryforward periods.

There were no income tax payments made for the year ended December 31, 2025.

The Company evaluates its tax position using a two-step process.

The Company will then determine the amount of benefit to recognize and record the amount of the benefit that is more likely than not to be realized upon ultimate settlement.

The Company has no unrecognized tax benefits as of December 31, 2025.

With certain exceptions, the tax years 2022 and thereafter remain open to examination by the major taxing jurisdictions with which the Company files tax returns.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

EARNINGS PER COMMON SHARE

The following table presents the calculation of basic and diluted earnings per common share attributable to CareTrust REIT, Inc.

(“EPS”) for the Company’s common stock for the years ended December 31, 2025, 2024 and 2023, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the years ended December 31, 2025, 2024 and 2023 (amounts in thousands, except per share amounts):

1 unchanged sentence

2025 2024 2023

Net income (loss) attributable to CareTrust REIT, Inc.

Net income attributable to CareTrust REIT, Inc.

$ 320,538 $ 125,080 $ 53,735

2 unchanged sentences

Weighted-average basic common shares outstanding 203,642 154,795 105,956

Dilutive potential common shares - performance stock awards 372 164 —

Dilutive potential common shares - TSR Units 442 372 164

Dilutive potential common shares - forward equity agreements 7 — 32

Weighted-average diluted common shares outstanding 204,091 155,167 106,152

Earnings (loss) per common share attributable to CareTrust REIT, Inc., basic $ 0.81 $ 0.50 $ ( 0.08 )

Earnings (loss) per common share attributable to CareTrust REIT, Inc., diluted $ 0.80 $ 0.50 $ ( 0.08 )

Earnings per common share attributable to CareTrust REIT, Inc., basic $ 1.57 $ 0.81 $ 0.50

Earnings per common share attributable to CareTrust REIT, Inc., diluted $ 1.57 $ 0.80 $ 0.50

Antidilutive unvested restricted stock awards, total shareholder units, performance awards, and forward equity shares excluded from the computation 554 553 475

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEGMENT REPORTING

1 unchanged sentence

The Company represents a single reportable segment, based on how its CODM evaluates the business and allocates resources.

The CODM assesses performance for the Company and decides how to allocate resources based on consolidated net income that is also reported on the consolidated statements of operations.

The CODM assesses performance for the Company and decides how to allocate resources based on consolidated net income that is also reported on the consolidated income statements.

The CODM does not review segment assets at a different asset level or category than the amounts disclosed in the consolidated balance sheets.

The CODM uses net income to evaluate the performance of the Company in deciding whether to reinvest profits into the Company.

The CODM evaluates performance based on net income, as follows (in thousands):

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The CODM evaluates performance based on net income, as follows (dollars in thousands):

Year Ended December 31,

1 unchanged sentence

Rental income $ 368,194 $ 228,261 $ 198,599

Interest income from financing receivable 1,009 — —

Resident fees and services 1,225 — —

Interest income from financing receivables 11,492 1,009 —

Interest income from other real estate related investments and other income 95,482 67,016 19,171

3 unchanged sentences

Property taxes 8,768 7,838 6,170

Senior housing operating expenses 952 — —

Impairment of real estate investments 2,483 42,225 36,301

Transaction costs 5,329 1,326 —

Provision for loan losses, net 4,900 — 3,844

Provision for loan losses — 4,900 —

Property operating expenses ( 138 ) 5,714 3,423

General and administrative

Cash Compensation 9,656 6,474 5,636

5 unchanged sentences

4,574 2,816 2,359

Total general and administrative 28,923 21,805 20,165

General and administrative 52,465 28,923 21,805

Total expenses 206,457 178,067 159,781

Other income (loss):

Other income, net 4,350 — —

Loss on extinguishment of debt ( 390 ) ( 657 ) —

(Loss) gain on sale of real estate, net ( 2,208 ) 2,218 ( 3,769 )

Gain (loss) on sale of real estate, net 31,548 ( 2,208 ) 2,218

Unrealized gain (loss) on other real estate related investments, net 15,831 9,045 ( 6,485 )

Gain on foreign currency transactions, net 4,012 — —

Total other income (loss) 55,351 6,180 ( 4,267 )

Net income (loss) 124,399 53,722 ( 7,506 )

Income before income tax expense 325,287 124,399 53,722

Income tax expense ( 5,001 ) — —

Net income 320,286 124,399 53,722

Net loss attributable to noncontrolling interests ( 252 ) ( 681 ) ( 13 )

Net income (loss) attributable to CareTrust REIT, Inc.

Net income attributable to CareTrust REIT, Inc.

$ 320,538 $ 125,080 $ 53,735

1 unchanged sentence

VARIABLE INTEREST ENTITIES

Noncontrolling Interests —The Company has entered into ventures with unrelated third parties to own real estate and has concluded that such ventures are VIEs.

VIEs for Which the Company is the Primary Beneficiary

Noncontrolling Interests —The Company has entered into ventures with unrelated third parties to own and operate real estate and has concluded that such ventures are VIEs.

As the Company exercises power over and receives economic benefits from the VIEs, the Company is considered the primary beneficiary and consolidates the VIEs.

3 unchanged sentences

Gross Investment

Investment Year State Facility Type Number of Facilities CTRE Noncontrolling Interests Total

2023 CA SNF 1 $ 25,459 $ 653 $ 26,112

2023 CA SNF 2 34,269 879 35,148

2024 CA ALF 1 10,760 276 11,036

2024 CA Multi-service campuses 2 28,076 720 28,796

2024 CA SNF 1 24,503 628 25,131

TN, AL SNF 27 422,646 18,389 441,035

Investment Year State Property Type Number of Properties CTRE Noncontrolling Interests Total

2023 CA Skilled nursing 1 $ 25,459 $ 653 $ 26,112

2023 CA Skilled nursing 2 34,269 879 35,148

2024 CA Senior housing 1 10,760 276 11,036

2024 CA Senior housing 2 28,076 720 28,796

2024 CA Skilled nursing 1 24,503 628 25,131

2024 / 2025 (1)

TN, AL Skilled nursing 28 442,327 19,156 461,483

2024 / 2025 CA Skilled nursing 1 33,810 867 34,677

WA, OR, ID Skilled nursing 10 140,610 5478 146,088

2025 CA Skilled nursing 1 8,893 228 9,121

2025 CA Skilled nursing 1 28,496 731 29,227

TX Senior housing 3 40,998 860 41,858

Total 51 $ 818,201 $ 30,476 $ 848,677

(1) The noncontrolling interest is classified as a redeemable noncontrolling interest on the consolidated balance sheets.

(2) The Company entered into a joint venture to acquire real estate.

The gross investment amounts represent a deposit.

Pursuant to the Company’s JVs, the Company typically contributes at least 90 % of the joint venture’s total investment amount and receives 100 % of the preferred equity interest in the joint venture and a 50 % common equity interest in the joint venture.

(2) This investment transaction includes multiple joint venture agreements.

Pursuant to the Company’s JVs, the Company typically contributes at least 90 % of the joint venture’s total investment amount and receives 100 % of the preferred equity interest, when applicable, in the joint venture and a 50 % common equity interest in the joint venture.

The Company’s joint venture partner contributes the remaining total investment amount in exchange for a 50 % common ownership interest in the joint venture.

Not all joint venture transactions include a preferred equity component.

Total assets and total liabilities on the Company’s consolidated balance sheets include VIE assets and liabilities as follows (in thousands):

3 unchanged sentences

Cash and cash equivalents 12,806 6,506

Accounts and other receivables, net 78 —

Prepaid and other assets 5,961 8,317

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

VIE for Which the Company is not the Primary Beneficiary

The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary.

In such cases, the Company does not exercise power over and/or does not have potentially significant economic exposure from the VIE.

The Company’s investment in the unconsolidated VIE is carried in other real estate related investments on the consolidated balance sheets and includes one mortgage secured loan issued by the VIE.

The fair value of the Company’s investment in the unconsolidated VIE at December 31, 2025 was £ 15.5 million.

The Company’s maximum exposure to loss from the unconsolidated VIE was £ 15.5 million at December 31, 2025.

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

In the normal course of business, the Company enters into various commitments, typically consisting of funding of capital expenditures and short-term working capital loans to existing tenants while they await licensure and certification or are conducting turnaround work in one or more of the Company’s properties.

Capital expenditures for each property leased under the Company’s triple-net leases are generally the responsibility of the tenant, except for the facilities leased under certain master lease agreements, with certain subsidiaries of Ensign and Pennant, under which the tenant will have an option to require the Company to finance certain capital expenditures up to an aggregate of 20 % of the Company’s initial investment in such property, subject to a corresponding rent increase at the time of funding.

Capital expenditures for each property leased under the Company’s triple-net leases are generally the responsibility of the tenant, except for the properties leased under certain master lease agreements, with certain subsidiaries of Ensign and Pennant, under which the tenant will have an option to require the Company to finance certain capital expenditures up to an aggregate of 20 % of the Company’s initial investment in such property, subject to a corresponding rent increase at the time of funding.

For the Company’s other triple-net master leases, the tenants also have the option to request capital expenditure funding that would generally be subject to a corresponding rent increase at the time of funding, which are subject to tenant compliance with the conditions to the Company’s approval and funding of their requests.

The Company has also provided select tenants with strategic capital for facility upkeep and modernization.

The Company has also provided select tenants with strategic capital for property upkeep and modernization.

The Company’s Tenant Code of Conduct and Corporate Responsibility policy (the “Tenant ESG Program”) provides eligible triple-net tenants of the Company with monetary inducements to make sustainable improvements to the Company’s properties.

4 unchanged sentences

Capital expenditures (1)

Mortgage loans 3,766

Other loans receivable (2)

Earn-out obligation (3)

(1) As of December 31, 2024, the Company had committed to fund expansions, construction, capital improvements and ESG incentives at certain triple-net leased facilities totaling $ 6.6 million, of which $ 5.7 million is subject to rent increase at the time of funding.

(2) Represents working capital loan commitments.

(3) Includes an earn-out obligation of up to $ 10.0 million under a purchase and sale agreement for one SNF in Virginia, which was acquired during 2024.

The earn-out is available, contingent on the operator achieving certain thresholds per the agreement, beginning in October 2025 through October 2026.

CONCENTRATION OF RISK

Concentrations of credit risk arise when one or more tenants, operators, or obligors related to the Company’s investments are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions.

(1) As of December 31, 2025, the Company had committed to fund expansions, construction, capital improvements and ESG incentives at certain triple-net leased properties totaling $ 6.2 million, of which $ 5.1 million is subject to rent increase at the time of funding.

(2) Represents non-real estate secured loan commitments.

(3) Includes earn‑out obligations of up to $ 42.5 million related to acquisitions completed in 2024 and 2025.

This consists of (i) up to $ 10.0 million under a purchase and sale agreement for one SNF in Virginia acquired in 2024, with the earn‑out payable upon the operator’s achievement of specified performance thresholds from October 2025 through October 2026, and (ii) up to $ 32.5 million under a purchase and sale agreement for five skilled nursing facilities in Virginia, North Carolina, and Maryland acquired in 2025, with the earn‑out payable upon the operator’s achievement of specified performance thresholds from December 2026 through December 2028.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

CONCENTRATION OF RISK

Major operator or borrower concentration – The Company has operators and borrowers from which it derived 10% or more of its revenue for the years ended December 31, 2025, 2024 and 2023.

The following table sets forth information regarding the Company’s major operators as of December 31, 2025, 2024 and 2023:

Number of Facilities Number of Beds/Units Percentage of Total Revenue

SNF Campus ALF/ILF SNF Campus ALF/ILF

Percentage of Total Revenue

Operator/Borrower (1)

December 31, 2025

Ensign 92 8 7 9,708 997 661 26 %

PMG 13 2 — 1,742 402 — 12 %

December 31, 2024

Ensign 83 8 7 8,738 997 661 32 %

PMG 13 2 — 1,742 402 — 14 %

Priority Management Group 12 %

December 31, 2023

Ensign 83 8 7 8,741 997 661 35 %

PMG 13 2 — 1,742 402 — 16 %

Priority Management Group 14 %

(1) Based on the Company’s rental income, resident fees and services, and interest income on other real estate related investments, exclusive of operating expense reimbursements.

(2) See Note 4, Real Estate Investments, Net , for further information regarding Ensign and PMG.

2 unchanged sentences

The Company has not verified this information through an independent investigation or otherwise.

(2) The Company’s rental income and interest income on other real estate related investments and financing receivable, exclusive of operating expense reimbursements and adjustments for collectibility.

(3) The Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility.

Major geographic concentration – The following table provides information regarding the Company’s concentrations with respect to certain states, from which the Company derived 10% or more of its revenue for the years ended December 31, 2025, 2024 and 2023:

Number of Facilities Number of Beds/Units Percentage of Total Revenue

State SNF Campus ALF/ILF SNF Campus ALF/ILF

Percentage of Total Revenue

December 31, 2025

CA 43 12 10 5,104 2,004 872 28 %

TX 38 3 2 4,726 476 212 18 %

December 31, 2024

CA 40 9 8 4,615 1,527 656 28 %

TX 40 3 2 5,123 536 212 21 %

December 31, 2023

CA 27 8 5 3,048 1,359 437 26 %

TX 38 3 3 4,849 536 242 22 %

(1) Based on the Company’s rental income and interest income on other real estate related investments and financing receivable, exclusive of operating expense reimbursements and adjustments for collectibility.

(2) Based on the Company’s rental income, exclusive of operating expense reimbursements and adjustments for collectibility.

(1) Based on the Company’s rental income, resident fees and services, and interest income on other real estate related investments, exclusive of operating expense reimbursements.

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SUBSEQUENT EVENTS

1 unchanged sentence

The Company evaluates subsequent events up until the date the consolidated financial statements are issued.

Recent Investments

On January 1, 2026, the Company acquired six SNFs in the Mid-Atlantic for $ 141.9 million, which includes estimated capitalized acquisition costs.

In connection with the acquisition of the facilities, the Company entered into a new master lease with a skilled nursing operator.

The master lease has a term of 15 years, with two five-year renewal options and CPI-based rent escalators.

Annual cash rent under the lease is $ 12.8 million.

On January 20, 2026, the Company extended a mortgage loan of £ 20.0 million, to an existing operator.

The mortgage loan is secured by one U.K.

Care Home and bears interest at a rate of 8.7 %.

The mortgage loan is set to mature on January 19, 2027, and includes a put and call option, subject to certain conditions, to purchase the real estate.

Upon receipt by the operator of certain regulatory approvals, the Company intends to exercise its option to accelerate the mortgage loan, acquire the underlying real estate securing the mortgage loan, and enter into a new long-term lease with the same operator.

On January 20, 2026, the Company acquired one senior housing community for approximately £ 31.5 million, which excludes estimated acquisition costs In connection with the acquisition of the senior housing community, the Company entered into a new lease with an existing senior housing operator.

The lease has a term of 21 years, with one 10‑year renewal option and RPI‑based rent escalators, subject to a floor of 2 % and a ceiling of 4 %.

Annual cash rent under the lease is £ 2.7 million.

Equity Awards Granted

On December 11, 2025, the Company, as the special limited partner of the Operating Partnership, and CareTrust GP, LLC, as the general partner of the Operating Partnership, entered into the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (the “Amended Operating Partnership Agreement”).

The amendments set forth in the Amended Operating Partnership Agreement established a new general class of units of limited partnership in the Operating Partnership designated as “LTIP Units” and designate four specific sub-classes of LTIP Units, including “Basic LTIP Units” and “Performance LTIP Units”, as defined and further set forth in the Amended Operating Partnership Agreement.

LTIP Units are structured in a manner intended to qualify as “profits interests” for U.S.

federal income tax purposes, which means they cannot have any value on the date of grant were the Operating Partnership to be liquidated on that date.

As profit interests, LTIP Units only have value, other than with respect to the right to receive distributions, if the value of the assets of the Operating Partnership increases between the time of issuance of the LTIP Units and the date of a book-up event for partnership tax purposes.

Subsequent to December 31, 2025, approximately 0.2 million Basic LTIP Units, which are subject to time and service-based vesting requirements, and approximately 0.6 million Performance LTIP Units, which are subject to performance-based vesting requirements as well as time and service-based vesting requirements, were issued to officers, certain other employees and members of the Board of the Company, pursuant to their election to receive LTIP Units in lieu of receiving their equity award in the form of time or performance-based RSUs, as applicable.

The Basic LTIP Units and Performance LTIPs were granted under the Plan and are also subject to the terms and conditions of the Amended Operating Partnership Agreement.

Basic LTIP Units generally vest in equal annual installments over a period of three years or, in the case of Basic LTIP Units awarded to members of the Board, on the first anniversary of their grant date.

Basic LTIP Units are generally entitled to receive distributions at the same time and in the same per-Unit amounts as are paid on Partnership Common Units, subject to certain limitations intended to preserve the U.S.

income tax treatment of such LTIP Units as “profits interests.” The Performance LTIP Units are scheduled to cliff vest at the end of a three-year period subject to a market-based performance condition tied to the Company’s TSR performance relative to a custom peer group consisting of other publicly traded healthcare REITs over the three-year period.

The Performance LTIP Units are granted at the maximum potential payout, inclusive of an estimated portion of distributions expected to be paid during the performance period, and vest 0 to 100 % of the Performance LTIP Units initially granted, and any portion from the original grant that does not vest is forfeited.

Until their “Full Distribution Participation Date” (as defined in the Amended Operating Partnership Agreement) specified in the applicable LTIP Unit award agreement, Performance LTIP Units generally will be entitled to distributions equal to 10 % of the distributions paid on Basic LTIP Units, and following the Full Distribution Participation Date, LTIP Units generally will be entitled to receive the same distributions that are payable with respect to Basic LTIP Units.

Subject to the terms and conditions of the Amended Operating Partnership Agreement, vested LTIP Units that have achieved specified capital account thresholds may be converted into Partnership Common Units, which may thereafter be

CARETRUST REIT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recent Investments and Acquisitions

The loan bears interest at a rate of 13 %, with annual CPI-based escalators.

The mezzanine loan is set to mature on December 31, 2034.

The mezzanine loan may not be prepaid in whole or in part prior to maturity.

On February 1, 2025, the Company contributed $ 19.7 million to a JV that purchased one SNF in Tennessee for $ 20.4 million.

In exchange the Company holds 100 % of the preferred equity interests in the JV and 50 % of the common equity interest in the JV.

The JV partner contributed the remaining $ 0.7 million of the total investment in exchange for 50 % of the common equity interest in the JV.

In connection with the acquisition of the facility, the JV amended the PACS TN Master Lease.

The lease, as amended, has a remaining term of approximately 15 years, with two five-year renewal options.

Annual cash rent under the amended lease increased by approximately $ 2.0 million, with annual CPI-based escalators.

See Note 3, Real Estate Investments, Net , for further information regarding the PACS TN Master Lease.

Subsequent to December 31, 2024, the Company sold or disposed of three SNFs, one SNF Campus and one ALF with an aggregate carrying value of $ 40.5 million.

In connection with the sales, the Company expects to record a gain on sale of real estate of approximately $ 3.9 million.

Recent ATM Program

On January 21, 2025, the Company entered into a new equity distribution agreement to issue and sell, from time to time, up to $ 750.0 million in aggregate offering price of its common stock through an “at-the-market” equity offering program (the “New 2025 ATM Program”) and terminated its previous $ 750.0 million “at-the-market” equity offering program.

In addition to the issuance and sale of shares of its common stock, the New 2025 ATM Program also provides for the ability to enter into one or more forward sales agreements with sales agents for the sale of the Company’s shares of common stock under the ATM Program.

As of February 12, 2025, the Company had $ 750.0 million available for future issuances under the New 2025 ATM Program.

Equity Award Grant

On January 28, 2025, the Compensation Committee of the Company’s Board of Directors granted 137,920 shares of RSA awards to officers and employees.

Each share had a fair market value on the date of grant of $ 27.17 per share based on the closing market price of the Company’s common stock on that date, and the shares vest on January 31, 2026.

redeemed for cash or, at the Company’s election, shares of the Company’s common stock pursuant to the existing redemption provisions of the Amended Operating Partnership Agreement.

At-The-Market Activity

In January 2026, the Company entered into ATM forward contracts under the ATM Program with a financial institution acting as a forward purchaser to sell 3.5 million shares of common stock at a weighted average initial sales price of $ 37.00 per share, before commissions and offering expenses.

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

2 unchanged sentences

Initial Cost to Company Costs Capitalized Since Acquisition Gross Carrying Value

Description Facility Location Encum.

Location Encum.

Land Building

2 unchanged sentences

Skilled Nursing Properties:

Ensign Highland LLC Highland Manor Phoenix, AZ $ — $ 257 $ 976 $ 926 $ 257 $ 1,902 $ 2,159 $ ( 1,597 ) 2013 2000

Meadowbrook Health Associates LLC Sabino Canyon Tucson, AZ — 425 3,716 1,940 425 5,656 6,081 ( 3,895 ) 2012 2000

Terrace Holdings AZ LLC Desert Terrace Phoenix, AZ — 113 504 971 113 1,475 1,588 ( 1,165 ) 2004 2002

Rillito Holdings LLC Catalina Tucson, AZ — 471 2,041 3,055 471 5,096 5,567 ( 4,061 ) 2013 2003

Valley Health Holdings LLC North Mountain Phoenix, AZ — 629 5,154 1,519 629 6,673 7,302 ( 4,847 ) 2009 2004

Cedar Avenue Holdings LLC Upland Upland, CA — 2,812 3,919 1,994 2,812 5,913 8,725 ( 4,234 ) 2011 2005

Granada Investments LLC Camarillo Camarillo, CA — 3,526 2,827 1,522 3,526 4,349 7,875 ( 3,319 ) 2010 2005

Plaza Health Holdings LLC Park Manor Walla Walla, WA — 450 5,566 1,055 450 6,621 7,071 ( 4,890 ) 2009 2006

Mountainview Communitycare LLC Park View Gardens Santa Rosa, CA — 931 2,612 653 931 3,265 4,196 ( 2,549 ) 1963 2006

CM Health Holdings LLC Carmel Mountain San Diego, CA — 3,028 3,119 2,071 3,028 5,190 8,218 ( 3,726 ) 2012 2006

Polk Health Holdings LLC Timberwood Livingston, TX — 60 4,391 1,167 60 5,558 5,618 ( 3,904 ) 2009 2006

Snohomish Health Holdings LLC Emerald Hills Lynnwood, WA — 741 1,663 1,998 741 3,661 4,402 ( 3,091 ) 2009 2006

Cherry Health Holdings LLC Pacific Care Hoquiam, WA — 171 1,828 2,038 171 3,866 4,037 ( 3,348 ) 2010 2006

Golfview Holdings LLC Cambridge SNF Richmond, TX — 1,105 3,110 1,067 1,105 4,177 5,282 ( 2,849 ) 2007 2006

Tenth East Holdings LLC Arlington Hills Salt Lake City, UT — 332 2,426 2,507 332 4,933 5,265 ( 4,111 ) 2013 2006

Trinity Mill Holdings LLC Carrollton Carrollton, TX — 664 2,294 902 664 3,196 3,860 ( 2,781 ) 2007 2006

Cottonwood Health Holdings LLC Holladay Salt Lake City, UT — 965 2,070 958 965 3,028 3,993 ( 2,813 ) 2008 2007

Verde Villa Holdings LLC Lake Village Lewisville, TX — 600 1,890 470 600 2,360 2,960 ( 1,835 ) 2011 2007

Mesquite Health Holdings LLC Willow Bend Mesquite, TX — 470 1,715 8,632 441 10,376 10,817 ( 9,318 ) 2012 2007

Arrow Tree Health Holdings LLC Arbor Glen Glendora, CA — 2,165 1,105 324 2,165 1,429 3,594 ( 1,277 ) 1965 2007

Fort Street Health Holdings LLC Draper Draper, UT — 443 2,394 759 443 3,153 3,596 ( 2,041 ) 2008 2007

Trousdale Health Holdings LLC Brookfield Downey, CA — 1,415 1,841 1,861 1,415 3,702 5,117 ( 2,712 ) 2013 2007

Ensign Bellflower LLC Rose Villa Bellflower, CA — 937 1,168 357 937 1,525 2,462 ( 1,149 ) 2009 2007

RB Heights Health Holdings LLC Osborn Scottsdale, AZ — 2,007 2,793 1,762 2,007 4,555 6,562 ( 3,172 ) 2009 2008

San Corrine Health Holdings LLC Salado Creek San Antonio, TX — 310 2,090 719 310 2,809 3,119 ( 1,708 ) 2005 2008

Temple Health Holdings LLC Wellington Temple, TX — 529 2,207 1,163 529 3,370 3,899 ( 2,281 ) 2008 2008

Anson Health Holdings LLC Northern Oaks Abilene, TX — 369 3,220 1,725 369 4,945 5,314 ( 3,286 ) 2012 2008

Willits Health Holdings LLC Northbrook Willits, CA — 490 1,231 500 490 1,731 2,221 ( 1,135 ) 2011 2008

Lufkin Health Holdings LLC Southland Lufkin, TX — 467 4,644 782 467 5,426 5,893 ( 2,197 ) 1988 2009

Lowell Health Holdings LLC Littleton Littleton, CO — 217 856 1,735 217 2,591 2,808 ( 1,934 ) 2012 2009

Jefferson Ralston Holdings LLC Arvada Arvada, CO — 280 1,230 834 280 2,064 2,344 ( 1,236 ) 2012 2009

Lafayette Health Holdings LLC Julia Temple Englewood, CO — 1,607 4,222 6,195 1,607 10,417 12,024 ( 7,027 ) 2012 2009

Phoenix, AZ $ — $ 257 $ 976 $ 926 $ 257 $ 1,902 $ 2,159 $ ( 1,644 ) 2013 2000

Tucson, AZ — 425 3,716 1,940 425 5,656 6,081 ( 4,089 ) 2012 2000

Phoenix, AZ — 113 504 971 113 1,475 1,588 ( 1,224 ) 2004 2002

Tucson, AZ — 471 2,041 3,055 471 5,096 5,567 ( 4,291 ) 2013 2003

Phoenix, AZ — 629 5,154 1,519 629 6,673 7,302 ( 5,060 ) 2009 2004

Upland, CA — 2,812 3,919 1,994 2,812 5,913 8,725 ( 4,410 ) 2011 2005

Camarillo, CA — 3,526 2,827 1,522 3,526 4,349 7,875 ( 3,436 ) 2010 2005

Walla Walla, WA — 450 5,566 1,055 450 6,621 7,071 ( 5,115 ) 2009 2006

Santa Rosa, CA — 931 2,612 653 931 3,265 4,196 ( 2,659 ) 1963 2006

San Diego, CA — 3,028 3,119 2,071 3,028 5,190 8,218 ( 3,869 ) 2012 2006

Livingston, TX — 60 4,391 1,167 60 5,558 5,618 ( 4,057 ) 2009 2006

Lynnwood, WA — 741 1,663 1,998 741 3,661 4,402 ( 3,186 ) 2009 2006

Hoquiam, WA — 171 1,828 2,038 171 3,866 4,037 ( 3,440 ) 2010 2006

Richmond, TX — 1,105 3,110 1,067 1,105 4,177 5,282 ( 2,989 ) 2007 2006

Salt Lake City, UT — 332 2,426 2,507 332 4,933 5,265 ( 4,349 ) 2013 2006

Carrollton, TX — 664 2,294 902 664 3,196 3,860 ( 2,890 ) 2007 2006

Salt Lake City, UT — 965 2,070 958 965 3,028 3,993 ( 2,915 ) 2008 2007

Lewisville, TX — 600 1,890 470 600 2,360 2,960 ( 1,922 ) 2011 2007

Mesquite, TX — 470 1,715 8,632 441 10,376 10,817 ( 9,821 ) 2012 2007

Glendora, CA — 2,165 1,105 324 2,165 1,429 3,594 ( 1,339 ) 1965 2007

Draper, UT — 443 2,394 759 443 3,153 3,596 ( 2,138 ) 2008 2007

Downey, CA — 1,415 1,841 1,861 1,415 3,702 5,117 ( 2,853 ) 2013 2007

Bellflower, CA — 937 1,168 357 937 1,525 2,462 ( 1,199 ) 2009 2007

Scottsdale, AZ — 2,007 2,793 1,762 2,007 4,555 6,562 ( 3,308 ) 2009 2008

San Antonio, TX — 310 2,090 719 310 2,809 3,119 ( 1,767 ) 2005 2008

Temple, TX — 529 2,207 1,163 529 3,370 3,899 ( 2,376 ) 2008 2008

Abilene, TX — 369 3,220 1,725 369 4,945 5,314 ( 3,464 ) 2012 2008

Willits, CA — 490 1,231 500 490 1,731 2,221 ( 1,190 ) 2011 2008

Lufkin, TX — 467 4,644 782 467 5,426 5,893 ( 2,328 ) 1988 2009

Littleton, CO — 217 856 1,735 217 2,591 2,808 ( 2,053 ) 2012 2009

Arvada, CO — 280 1,230 834 280 2,064 2,344 ( 1,312 ) 2012 2009

Englewood, CO — 1,607 4,222 6,195 1,607 10,417 12,024 ( 7,517 ) 2012 2009

Dallas, TX — 2,133 11,977 1,421 2,133 13,398 15,531 ( 7,906 ) 1984 2009

Price, UT — 193 2,209 849 193 3,058 3,251 ( 1,618 ) 2012 2009

Provo, UT — 2,051 8,362 2,011 2,051 10,373 12,424 ( 4,575 ) 2011 2009

West Jordan, UT — 2,671 4,244 1,507 2,671 5,751 8,422 ( 2,684 ) 2013 2009

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

Hillendahl Health Holdings LLC Golden Acres Dallas, TX — 2,133 11,977 1,421 2,133 13,398 15,531 ( 7,482 ) 1984 2009

Price Health Holdings LLC Pinnacle Price, UT — 193 2,209 849 193 3,058 3,251 ( 1,519 ) 2012 2009

Silver Lake Health Holdings LLC Provo Provo, UT — 2,051 8,362 2,011 2,051 10,373 12,424 ( 4,308 ) 2011 2009

Jordan Health Properties LLC Copper Ridge West Jordan, UT — 2,671 4,244 1,507 2,671 5,751 8,422 ( 2,519 ) 2013 2009

Regal Road Health Holdings LLC Sunview Youngstown, AZ — 767 4,648 155 193 5,377 5,570 ( 2,730 ) 2012 2009

Paredes Health Holdings LLC Alta Vista Brownsville, TX — 373 1,354 190 373 1,544 1,917 ( 630 ) 1969 2009

Expressway Health Holdings LLC Veranda Harlingen, TX — 90 675 430 90 1,105 1,195 ( 627 ) 2011 2009

Rio Grande Health Holdings LLC Grand Terrace McAllen, TX — 642 1,085 870 642 1,955 2,597 ( 1,273 ) 2012 2009

Fifth East Holdings LLC Paramount Salt Lake City, UT — 345 2,464 1,065 345 3,529 3,874 ( 1,836 ) 2011 2009

Emmett Healthcare Holdings LLC River's Edge Emmet, ID — 591 2,383 69 591 2,452 3,043 ( 1,087 ) 1972 2010

Burley Healthcare Holdings LLC Parke View Burley, ID — 250 4,004 424 250 4,428 4,678 ( 2,117 ) 2011 2010

Josey Ranch Healthcare Holdings LLC Heritage Gardens Carrollton, TX — 1,382 2,293 478 1,382 2,771 4,153 ( 1,278 ) 1996 2010

Everglades Health Holdings LLC Victoria Ventura Ventura, CA — 1,847 5,377 682 1,847 6,059 7,906 ( 2,147 ) 1990 2011

Irving Health Holdings LLC Beatrice Manor Beatrice, NE — 60 2,931 245 60 3,176 3,236 ( 1,469 ) 2011 2011

Falls City Health Holdings LLC Careage Estates of Falls City Falls City, NE — 170 2,141 82 170 2,223 2,393 ( 967 ) 1972 2011

Gillette Park Health Holdings LLC Careage of Cherokee Cherokee, IA — 163 1,491 12 163 1,503 1,666 ( 817 ) 1967 2011

Gazebo Park Health Holdings LLC Careage of Clarion Clarion, IA — 80 2,541 97 80 2,638 2,718 ( 1,468 ) 1978 2011

Oleson Park Health Holdings LLC Careage of Ft.

Youngstown, AZ — 767 4,648 155 193 5,377 5,570 ( 2,865 ) 2012 2009

Brownsville, TX — 373 1,354 190 373 1,544 1,917 ( 669 ) 1969 2009

Harlingen, TX — 90 675 430 90 1,105 1,195 ( 655 ) 2011 2009

McAllen, TX — 642 1,085 870 642 1,955 2,597 ( 1,328 ) 2012 2009

Salt Lake City, UT — 345 2,464 1,065 345 3,529 3,874 ( 1,943 ) 2011 2009

Emmet, ID — 591 2,383 69 591 2,452 3,043 ( 1,156 ) 1972 2010

Burley, ID — 250 4,004 424 250 4,428 4,678 ( 2,247 ) 2011 2010

Carrollton, TX — 1,382 2,293 478 1,382 2,771 4,153 ( 1,347 ) 1996 2010

Ventura, CA — 1,847 5,377 682 1,847 6,059 7,906 ( 2,262 ) 1990 2011

Beatrice, NE — 60 2,931 245 60 3,176 3,236 ( 1,565 ) 2011 2011

Falls City, NE — 170 2,141 82 170 2,223 2,393 ( 1,038 ) 1972 2011

Cherokee, IA — 163 1,491 12 163 1,503 1,666 ( 877 ) 1967 2011

Clarion, IA — 80 2,541 97 80 2,638 2,718 ( 1,570 ) 1978 2011

Dodge, IA — 90 2,341 759 90 3,100 3,190 ( 2,353 ) 2012 2011

Arapahoe Health Holdings LLC Oceanview Texas City, TX — 158 4,810 759 128 5,599 5,727 ( 2,850 ) 2012 2011

Dixie Health Holdings LLC Hurricane Hurricane, UT — 487 1,978 98 487 2,076 2,563 ( 749 ) 1978 2011

Memorial Health Holdings LLC Pocatello Pocatello, ID — 537 2,138 698 537 2,836 3,373 ( 1,502 ) 2007 2011

Bogardus Health Holdings LLC Whittier East Whittier, CA — 1,425 5,307 1,079 1,425 6,386 7,811 ( 3,058 ) 2011 2011

South Dora Health Holdings LLC Ukiah Ukiah, CA — 297 2,087 1,621 297 3,708 4,005 ( 2,405 ) 2013 2011

Silverada Health Holdings LLC Rosewood Reno, NV — 1,012 3,282 103 1,012 3,385 4,397 ( 1,159 ) 1970 2011

Orem Health Holdings LLC Orem Orem, UT — 1,689 3,896 3,235 1,689 7,131 8,820 ( 4,062 ) 2011 2011

Wisteria Health Holdings Wisteria Abilene, TX — 746 9,903 290 746 10,193 10,939 ( 3,010 ) 2008 2011

Renee Avenue Health Holdings LLC Monte Vista Pocatello, ID — 180 2,481 966 180 3,447 3,627 ( 1,806 ) 2013 2012

Stillhouse Health Holdings LLC Stillhouse Paris, TX — 129 7,139 6 129 7,145 7,274 ( 1,582 ) 2009 2012

Fig Street Health Holdings LLC Palomar Vista Escondido, CA — 329 2,653 1,094 329 3,747 4,076 ( 1,999 ) 2007 2012

Lowell Lake Health Holdings LLC Owyhee Owyhee, ID — 49 1,554 29 49 1,583 1,632 ( 458 ) 1990 2012

Queensway Health Holdings LLC Atlantic Memorial Long Beach, CA — 999 4,237 2,331 999 6,568 7,567 ( 3,317 ) 2008 2012

Long Beach Health Associates LLC Shoreline Long Beach, CA — 1,285 2,343 2,172 1,285 4,515 5,800 ( 2,570 ) 2013 2012

Kings Court Health Holdings LLC Richland Hills Ft.

Texas City, TX — 158 4,810 759 128 5,599 5,727 ( 3,041 ) 2012 2011

Hurricane, UT — 487 1,978 98 487 2,076 2,563 ( 803 ) 1978 2011

Pocatello, ID — 537 2,138 698 537 2,836 3,373 ( 1,605 ) 2007 2011

Whittier, CA — 1,425 5,307 1,079 1,425 6,386 7,811 ( 3,235 ) 2011 2011

Ukiah, CA — 297 2,087 1,621 297 3,708 4,005 ( 2,476 ) 2013 2011

Reno, NV — 1,012 3,282 103 1,012 3,385 4,397 ( 1,248 ) 1970 2011

Orem, UT — 1,689 3,896 3,235 1,689 7,131 8,820 ( 4,268 ) 2011 2011

Abilene, TX — 746 9,903 290 746 10,193 10,939 ( 3,194 ) 2008 2011

Pocatello, ID — 180 2,481 966 180 3,447 3,627 ( 1,948 ) 2013 2012

Paris, TX — 129 7,139 6 129 7,145 7,274 ( 1,707 ) 2009 2012

Escondido, CA — 329 2,653 1,094 329 3,747 4,076 ( 2,083 ) 2007 2012

Owyhee, ID — 49 1,554 29 49 1,583 1,632 ( 492 ) 1990 2012

Long Beach, CA — 999 4,237 2,331 999 6,568 7,567 ( 3,422 ) 2008 2012

Long Beach, CA — 1,285 2,343 2,172 1,285 4,515 5,800 ( 2,726 ) 2013 2012

Worth, TX — 193 2,311 318 193 2,629 2,822 ( 1,018 ) 1965 2012

51st Avenue Health Holdings LLC Legacy Amarillo, TX — 340 3,925 32 340 3,957 4,297 ( 1,352 ) 1970 2013

Ives Health Holdings LLC San Marcos San Marcos, TX — 371 2,951 274 371 3,225 3,596 ( 1,066 ) 1972 2013

Guadalupe Health Holdings LLC The Courtyard (Victoria East) Victoria, TX — 80 2,391 15 80 2,406 2,486 ( 640 ) 2013 2013

49th Street Health Holdings LLC Omaha Omaha, NE — 129 2,418 24 129 2,442 2,571 ( 957 ) 1960 2013

Willows Health Holdings LLC Cascade Vista Redmond, WA — 1,388 2,982 202 1,388 3,184 4,572 ( 1,348 ) 1970 2013

Tulalip Bay Health Holdings LLC Mountain View Marysville, WA — 1,722 2,642 ( 980 ) 742 2,642 3,384 ( 1,013 ) 1966 2013

Amarillo, TX — 340 3,925 32 340 3,957 4,297 ( 1,466 ) 1970 2013

San Marcos, TX — 371 2,951 274 371 3,225 3,596 ( 1,157 ) 1972 2013

Victoria, TX — 80 2,391 15 80 2,406 2,486 ( 693 ) 2013 2013

Omaha, NE — 129 2,418 24 129 2,442 2,571 ( 1,040 ) 1960 2013

Redmond, WA — 1,388 2,982 202 1,388 3,184 4,572 ( 1,451 ) 1970 2013

Marysville, WA — 1,722 2,642 ( 980 ) 742 2,642 3,384 ( 1,101 ) 1966 2013

Glendale, AZ — 228 1,124 1,380 228 2,504 2,732 ( 2,165 ) 2004 2002

Riverside, CA — 152 357 1,493 152 1,850 2,002 ( 1,701 ) 2012 2009

Lakewood, CO — 1,668 15,375 279 1,668 15,654 17,322 ( 4,227 ) 1989 2015

Mount Vernon, WA — 1,601 7,425 — 1,601 7,425 9,026 ( 1,995 ) 1989 2015

Shoreline, WA — 1,462 5,034 — 1,462 5,034 6,496 ( 1,332 ) 1987 2015

Cincinnati, OH — 833 18,086 792 833 18,878 19,711 ( 4,993 ) 1992 2015

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

Sky Holdings AZ LLC Bella Vita Health and Rehabilitation Center Glendale, AZ — 228 1,124 1,380 228 2,504 2,732 ( 2,094 ) 2004 2002

Lemon River Holdings LLC Plymouth Tower Riverside, CA — 152 357 1,493 152 1,850 2,002 ( 1,610 ) 2012 2009

CTR Partnership, L.P.

Bethany Rehabilitation Center Lakewood, CO — 1,668 15,375 105 1,668 15,480 17,148 ( 3,836 ) 1989 2015

CTR Partnership, L.P.

Mira Vista Care Center Mount Vernon, WA — 1,601 7,425 — 1,601 7,425 9,026 ( 1,810 ) 1989 2015

CTR Partnership, L.P.

Shoreline Health and Rehabilitation Center Shoreline, WA — 1,462 5,034 — 1,462 5,034 6,496 ( 1,206 ) 1987 2015

CTR Partnership, L.P.

Premier Estates of Cincinnati-Riverview Cincinnati, OH — 833 18,086 792 833 18,878 19,711 ( 4,465 ) 1992 2015

CTR Partnership, L.P.

Shaw Mountain at Cascadia Boise, ID — 1,801 6,572 395 1,801 6,967 8,768 ( 1,724 ) 1989 2016

CTR Partnership, L.P.

Arbor Nursing Center Lodi, CA — 768 10,712 58 768 10,770 11,538 ( 2,254 ) 1982 2016

CTR Partnership, L.P.

Broadmoor Medical Lodge Rockwall, TX — 1,232 22,152 — 1,232 22,152 23,384 ( 4,477 ) 1984 2016

CTR Partnership, L.P.

Decatur Medical Lodge Decatur, TX — 990 24,909 — 990 24,909 25,899 ( 5,034 ) 2013 2016

CTR Partnership, L.P.

Royse City Medical Lodge Royse City, TX — 606 14,660 — 606 14,660 15,266 ( 2,962 ) 2009 2016

CTR Partnership, L.P.

Saline Care Nursing & Rehabilitation Center Harrisburg, IL — 1,022 5,713 — 1,022 5,713 6,735 ( 1,119 ) 2009 2017

CTR Partnership, L.P.

Carrier Mills Nursing & Rehabilitation Center Carrier Mills, IL — 775 8,377 — 775 8,377 9,152 ( 1,640 ) 1968 2017

CTR Partnership, L.P.

StoneBridge Nursing & Rehabilitation Center Benton, IL — 439 3,475 — 439 3,475 3,914 ( 681 ) 2014 2017

CTR Partnership, L.P.

DuQuoin Nursing & Rehabilitation Center DuQuoin, IL — 511 3,662 — 511 3,662 4,173 ( 717 ) 2014 2017

CTR Partnership, L.P.

Pinckneyville Nursing & Rehabilitation Center Pinckneyville, IL — 406 3,411 — 406 3,411 3,817 ( 668 ) 2014 2017

CTR Partnership, L.P.

Wellspring Health and Rehabilitation of Cascadia Nampa, ID — 775 5,044 336 775 5,380 6,155 ( 1,028 ) 2011 2017

CTR Partnership, L.P.

The Rio at Fox Hollow Brownsville, TX — 1,178 12,059 — 1,178 12,059 13,237 ( 2,286 ) 2016 2017

CTR Partnership, L.P.

The Rio at Cabezon Albuquerque, NM — 2,055 9,749 — 2,055 9,749 11,804 ( 1,848 ) 2016 2017

CTR Partnership, L.P.

Eldorado Rehab & Healthcare Eldorado, IL — 940 2,093 — 940 2,093 3,033 ( 392 ) 1993 2017

CTR Partnership, L.P.

Secora Health and Rehabilitation of Cascadia Portland, OR — 1,481 2,216 110 1,481 2,326 3,807 ( 436 ) 2012 2017

CTR Partnership, L.P.

Mountain Valley Kellogg, ID — 916 7,874 — 916 7,874 8,790 ( 1,443 ) 1971 2017

CTR Partnership, L.P.

Caldwell Care Caldwell, ID — 906 7,020 516 906 7,536 8,442 ( 1,382 ) 1947 2017

CTR Partnership, L.P.

Canyon West Caldwell, ID — 312 10,410 461 312 10,871 11,183 ( 1,993 ) 1969 2017

CTR Partnership, L.P.

Lewiston Health and Rehabilitation Lewiston, ID — 625 12,087 215 625 12,302 12,927 ( 2,230 ) 1964 2017

CTR Partnership, L.P.

The Orchards Nampa, ID — 785 8,923 272 785 9,195 9,980 ( 1,667 ) 1958 2017

CTR Partnership, L.P.

Weiser Care Weiser, ID — 80 4,419 389 80 4,808 4,888 ( 872 ) 1964 2017

CTR Partnership, L.P.

Aspen Park Moscow, ID — 698 5,092 274 698 5,366 6,064 ( 1,020 ) 1965 2017

CTR Partnership, L.P.

Ridgmar Medical Lodge Fort Worth, TX — 681 6,587 1,256 681 7,843 8,524 ( 1,695 ) 2006 2017

CTR Partnership, L.P.

Mansfield Medical Lodge Mansfield, TX — 607 4,801 1,073 607 5,874 6,481 ( 1,265 ) 2006 2017

CTR Partnership, L.P.

Grapevine Medical Lodge Grapevine, TX — 1,602 4,536 891 1,602 5,427 7,029 ( 1,177 ) 2006 2017

CTR Partnership, L.P.

The Oaks at Lakewood Tacoma, WA — 1,001 1,779 — 1,001 1,779 2,780 ( 322 ) 1989 2017

Boise, ID — 1,801 6,572 395 1,801 6,967 8,768 ( 1,928 ) 1989 2016

Lodi, CA — 768 10,712 68 768 10,780 11,548 ( 2,528 ) 1982 2016

Rockwall, TX — 1,232 22,152 — 1,232 22,152 23,384 ( 5,030 ) 1984 2016

Decatur, TX — 990 24,909 — 990 24,909 25,899 ( 5,657 ) 2013 2016

Royse City, TX — 606 14,660 — 606 14,660 15,266 ( 3,329 ) 2009 2016

Harrisburg, IL — 1,022 5,713 — 1,022 5,713 6,735 ( 1,262 ) 2009 2017

Carrier Mills, IL — 775 8,377 — 775 8,377 9,152 ( 1,850 ) 1968 2017

Benton, IL — 439 3,475 — 439 3,475 3,914 ( 768 ) 2014 2017

DuQuoin, IL — 511 3,662 — 511 3,662 4,173 ( 809 ) 2014 2017

Pinckneyville, IL — 406 3,411 — 406 3,411 3,817 ( 753 ) 2014 2017

Nampa, ID — 775 5,044 336 775 5,380 6,155 ( 1,189 ) 2011 2017

Brownsville, TX — 1,178 12,059 — 1,178 12,059 13,237 ( 2,588 ) 2016 2017

Albuquerque, NM — 2,055 9,749 — 2,055 9,749 11,804 ( 2,092 ) 2016 2017

Eldorado, IL — 940 2,093 — 940 2,093 3,033 ( 445 ) 1993 2017

Portland, OR — 1,481 2,216 110 1,481 2,326 3,807 ( 502 ) 2012 2017

Kellogg, ID — 916 7,874 — 916 7,874 8,790 ( 1,641 ) 1971 2017

Caldwell, ID — 906 7,020 516 906 7,536 8,442 ( 1,609 ) 1947 2017

Caldwell, ID — 312 10,410 461 312 10,871 11,183 ( 2,299 ) 1969 2017

Lewiston, ID — 625 12,087 215 625 12,302 12,927 ( 2,554 ) 1964 2017

Nampa, ID — 785 8,923 272 785 9,195 9,980 ( 1,917 ) 1958 2017

Weiser, ID — 80 4,419 389 80 4,808 4,888 ( 1,021 ) 1964 2017

Moscow, ID — 698 5,092 274 698 5,366 6,064 ( 1,167 ) 1965 2017

Fort Worth, TX — 681 6,587 1,256 681 7,843 8,524 ( 1,944 ) 2006 2017

Mansfield, TX — 607 4,801 1,073 607 5,874 6,481 ( 1,453 ) 2006 2017

Grapevine, TX — 1,602 4,536 891 1,602 5,427 7,029 ( 1,350 ) 2006 2017

Tacoma, WA — 1,001 1,779 — 1,001 1,779 2,780 ( 368 ) 1989 2017

Vancouver, WA — 446 869 — 446 869 1,315 ( 180 ) 1972 2017

San Bernardino, CA — 3,831 19,791 — 3,831 19,791 23,622 ( 4,082 ) 1967 2017

Riverside, CA — 2,897 14,700 345 2,897 15,045 17,942 ( 3,147 ) 1969 2017

Ontario, CA — 4,204 21,880 — 4,204 21,880 26,084 ( 4,513 ) 1980 2017

Greenville, IL — 188 3,972 — 188 3,972 4,160 ( 959 ) 1973 2017

Butte, MT — 220 4,974 39 220 5,013 5,233 ( 1,094 ) 2010 2018

Aberdeen, SD — 1,372 7,491 38 1,372 7,529 8,901 ( 1,548 ) 1965 2018

Fargo, ND — 989 3,275 3,441 989 6,716 7,705 ( 818 ) 1966 2018

Parker, CO — 1,178 17,857 — 1,178 17,857 19,035 ( 3,235 ) 2012 2018

Huntington Park, CA — 3,131 8,876 303 3,131 9,179 12,310 ( 1,744 ) 1955 2019

Oxnard, CA — 1,699 9,004 825 1,699 9,829 11,528 ( 1,657 ) 1962 2019

Downey, CA — 2,502 6,141 — 2,502 6,141 8,643 ( 1,092 ) 1967 2019

Davis, CA — 2,351 9,256 49 2,351 9,305 11,656 ( 1,680 ) 1969 2019

Ruston, LA — 2,688 23,825 — 2,688 23,825 26,513 ( 4,242 ) 2014 2019

Shreveport, LA — 3,758 21,325 17 3,758 21,342 25,100 ( 3,828 ) 1980 2019

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

CTR Partnership, L.P.

The Oaks at Timberline Vancouver, WA — 446 869 — 446 869 1,315 ( 157 ) 1972 2017

CTR Partnership, L.P.

Providence Waterman Nursing Center San Bernardino, CA — 3,831 19,791 — 3,831 19,791 23,622 ( 3,587 ) 1967 2017

CTR Partnership, L.P.

Providence Orange Tree Riverside, CA — 2,897 14,700 345 2,897 15,045 17,942 ( 2,756 ) 1969 2017

CTR Partnership, L.P.

Providence Ontario Ontario, CA — 4,204 21,880 — 4,204 21,880 26,084 ( 3,966 ) 1980 2017

CTR Partnership, L.P.

Greenville Nursing & Rehabilitation Center Greenville, IL — 188 3,972 — 188 3,972 4,160 ( 840 ) 1973 2017

CTR Partnership, L.P.

Copper Ridge Health and Rehabilitation Center Butte, MT — 220 4,974 39 220 5,013 5,233 ( 954 ) 2010 2018

CTR Partnership, L.P.

Prairie Heights Healthcare Center Aberdeen, SD — 1,372 7,491 38 1,372 7,529 8,901 ( 1,340 ) 1965 2018

CTR Partnership, L.P.

The Meadows on University Fargo, ND — 989 3,275 429 989 3,704 4,693 ( 559 ) 1966 2018

CTR Partnership, L.P.

The Suites - Parker Parker, CO — 1,178 17,857 — 1,178 17,857 19,035 ( 2,779 ) 2012 2018

CTR Partnership, L.P.

Huntington Park Nursing Center Huntington Park, CA — 3,131 8,876 302 3,131 9,178 12,309 ( 1,488 ) 1955 2019

CTR Partnership, L.P.

Shoreline Care Center Oxnard, CA — 1,699 9,004 819 1,699 9,823 11,522 ( 1,367 ) 1962 2019

CTR Partnership, L.P.

Downey Care Center Downey, CA — 2,502 6,141 — 2,502 6,141 8,643 ( 934 ) 1967 2019

CTR Partnership, L.P.

Courtyard Healthcare Center Davis, CA — 2,351 9,256 48 2,351 9,304 11,655 ( 1,433 ) 1969 2019

Gulf Coast Buyer 1 LLC Alpine Skilled Nursing and Rehabilitation Ruston, LA — 2,688 23,825 — 2,688 23,825 26,513 ( 3,613 ) 2014 2019

Gulf Coast Buyer 1 LLC The Bradford Skilled Nursing and Rehabilitation Shreveport, LA — 3,758 21,325 17 3,758 21,342 25,100 ( 3,261 ) 1980 2019

Gulf Coast Buyer 1 LLC Colonial Oaks Skilled Nursing and Rehabilitation Bossier City, LA — 1,635 21,180 — 1,635 21,180 22,815 ( 3,136 ) 2013 2019

Gulf Coast Buyer 1 LLC The Guest House Skilled Nursing and Rehabilitation Shreveport, LA — 3,437 20,889 2,845 3,437 23,734 27,171 ( 3,824 ) 2006 2019

Gulf Coast Buyer 1 LLC Pilgrim Manor Skilled Nursing and Rehabilitation Bossier City, LA — 2,979 24,617 1,978 2,979 26,595 29,574 ( 3,921 ) 2008 2019

Gulf Coast Buyer 1 LLC Shreveport Manor Skilled Nursing and Rehabilitation Shreveport, LA — 676 10,238 602 676 10,840 11,516 ( 1,662 ) 2008 2019

Gulf Coast Buyer 1 LLC Booker T.

Washington Skilled Nursing and Rehabilitation Shreveport, LA — 2,452 9,148 113 2,452 9,261 11,713 ( 1,479 ) 2013 2019

Gulf Coast Buyer 1 LLC Legacy West Rehabilitation and Healthcare Corsicana, TX — 120 6,682 436 120 7,118 7,238 ( 1,227 ) 2002 2019

Gulf Coast Buyer 1 LLC Legacy at Jacksonville Jacksonville, TX — 173 7,481 148 173 7,629 7,802 ( 1,246 ) 2006 2019

Gulf Coast Buyer 1 LLC Pecan Tree Rehabilitation and Healthcare Gainesville, TX — 219 10,097 255 219 10,352 10,571 ( 1,648 ) 1990 2019

Lakewest SNF Realty, LLC Lakewest Rehabilitation and Skilled Care Dallas, TX — — 6,905 — — 6,905 6,905 ( 1,094 ) 2011 2019

CTR Partnership, L.P.

Cascadia of Nampa Nampa, ID — 880 14,117 — 880 14,117 14,997 ( 2,094 ) 2017 2019

CTR Partnership, L.P.

Valley Skilled Nursing Modesto, CA — 798 7,671 — 798 7,671 8,469 ( 1,045 ) 2016 2019

CTR Partnership, L.P.

Cascadia of Boise Boise, ID — 1,597 15,692 — 1,597 15,692 17,289 ( 2,059 ) 2018 2020

CTR Partnership, L.P.

Cooney Healthcare and Rehabilitation Helena, MT — 867 7,431 20 867 7,451 8,318 ( 853 ) 1984 2020

Bossier City, LA — 1,635 21,180 — 1,635 21,180 22,815 ( 3,681 ) 2013 2019

Shreveport, LA — 3,437 20,889 2,845 3,437 23,734 27,171 ( 4,656 ) 2006 2019

Bossier City, LA — 2,979 24,617 1,978 2,979 26,595 29,574 ( 4,761 ) 2008 2019

Shreveport, LA — 676 10,238 602 676 10,840 11,516 ( 1,975 ) 2008 2019

Shreveport, LA — 2,452 9,148 113 2,452 9,261 11,713 ( 1,737 ) 2013 2019

Corsicana, TX — 120 6,682 449 120 7,131 7,251 ( 1,449 ) 2002 2019

Jacksonville, TX — 173 7,481 148 173 7,629 7,802 ( 1,466 ) 2006 2019

Gainesville, TX — 219 10,097 255 219 10,352 10,571 ( 1,939 ) 1990 2019

Dallas, TX — — 6,905 — — 6,905 6,905 ( 1,287 ) 2011 2019

Nampa, ID — 880 14,117 — 880 14,117 14,997 ( 2,469 ) 2017 2019

Modesto, CA — 798 7,671 — 798 7,671 8,469 ( 1,243 ) 2016 2019

Boise, ID — 1,597 15,692 — 1,597 15,692 17,289 ( 2,471 ) 2018 2020

Helena, MT — 867 7,431 1,752 867 9,183 10,050 ( 1,051 ) 1984 2020

Clancy, MT — 183 7,380 770 183 8,150 8,333 ( 1,177 ) 1960 2020

Goleta, CA — 7,987 7,237 553 7,987 7,790 15,777 ( 977 ) 1967 2021

El Centro, CA — 1,283 8,133 135 1,283 8,268 9,551 ( 1,050 ) 1962 2021

Austin, TX — 3,282 12,763 — 3,282 12,763 16,045 ( 1,580 ) 2017 2021

Cedar Park, TX — 3,325 11,738 — 3,325 11,738 15,063 ( 1,436 ) 2017 2021

Ennis,TX — 568 8,055 100 568 8,155 8,723 ( 862 ) 1982 2022

Burleson, TX — 1,877 6,616 718 1,877 7,334 9,211 ( 675 ) 1988 2023

Overland Park, KS — 1,301 5,025 — 1,301 5,025 6,326 ( 382 ) 1987 2023

Griffin, GA — 680 11,044 2,675 680 13,719 14,399 ( 978 ) 2022 2023

La Mesa, CA — 5,346 21,528 — 5,346 21,528 26,874 ( 1,423 ) 1968 2023

Paramount, CA — 3,640 15,380 369 3,640 15,749 19,389 ( 1,035 ) 1969 2023

Norwalk, CA — 4,932 14,229 — 4,932 14,229 19,161 ( 957 ) 1964 2023

Vista, CA — 4,882 20,793 — 4,882 20,793 25,675 ( 1,310 ) 1990 2023

Capitola, CA — 5,231 16,321 — 5,231 16,321 21,552 ( 915 ) 1964 2023

Morgan Hill, CA — 3,239 14,418 — 3,239 14,418 17,657 ( 830 ) 2014 2023

Columbia, MO — 1,619 15,678 — 1,619 15,678 17,297 ( 773 ) 2017 2024

Houston, TX — 2,668 17,434 — 2,668 17,434 20,102 ( 876 ) 2022 2024

Bolivia, NC — 551 16,589 — 551 16,589 17,140 ( 764 ) 2009 2024

Fletcher, NC — 1,547 15,316 — 1,547 15,316 16,863 ( 715 ) 2002 2024

Ramseur, NC — 747 15,085 — 747 15,085 15,832 ( 747 ) 2002 2024

Charlotte, NC — 2,217 16,213 — 2,217 16,213 18,430 ( 755 ) 1993 2024

Columbia, SC — 583 10,847 — 583 10,847 11,430 ( 499 ) 1980 2024

Gilroy, CA — 6,539 19,162 — 6,539 19,162 25,701 ( 702 ) 1968 2024

Richmond, VA — — 31,567 — — 31,567 31,567 ( 1,097 ) 2005 2024

Oakland, MD — 1,134 18,227 108 1,134 18,335 19,469 ( 638 ) 2023 2024

Frostburg, MD — 853 20,334 187 853 20,521 21,374 ( 660 ) 1995 2024

Bethel Park, PA — 1,835 12,726 — 1,835 12,726 14,561 ( 403 ) 2021 2024

Canonsburg, PA — 1,651 12,509 — 1,651 12,509 14,160 ( 394 ) 1988 2024

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

CTR Partnership, L.P.

Elkhorn Healthcare and Rehabilitation Clancy, MT — 183 7,380 576 183 7,956 8,139 ( 938 ) 1960 2020

160 North Patterson Avenue, LLC Buena Vista Care Center Goleta, CA — 7,987 7,237 552 7,987 7,789 15,776 ( 735 ) 1967 2021

CTR Partnership, L.P.

El Centro Post-Acute Care El Centro, CA — 1,283 8,133 135 1,283 8,268 9,551 ( 823 ) 1962 2021

CTR Partnership, L.P.

Sedona Trace Health and Wellness Austin, TX — 3,282 12,763 — 3,282 12,763 16,045 ( 1,222 ) 2017 2021

CTR Partnership, L.P.

Cedar Pointe Health and Wellness Suites Cedar Park, TX — 3,325 11,738 — 3,325 11,738 15,063 ( 1,111 ) 2017 2021

CTR Partnership, L.P.

Ennis Care Center Ennis,TX — 568 8,055 100 568 8,155 8,723 ( 641 ) 1982 2022

CTR Partnership, L.P.

Park Bend Rehabilitation and Healthcare Center Burleson, TX — 1,877 6,616 718 1,877 7,334 9,211 ( 406 ) 1988 2023

CTR Partnership, L.P.

Prairie Ridge Health and Rehabiliation Overland Park , KS — 1,301 5,025 — 1,301 5,025 6,326 ( 243 ) 1987 2023

CTR Partnership, L.P.

Spalding Post Acute Griffin , GA — 680 11,044 1,853 680 12,897 13,577 ( 522 ) 2022 2023

CTR Partnership, L.P.

Casa Azul Skilled Nursing and Rehabilitation Katy , TX — 3,413 10,451 — 3,413 10,451 13,864 ( 449 ) 2005 2023

8665 La Mesa Boulevard, LLC Community Convalescent Hospital of La Mesa La Mesa , CA — 5,346 21,528 — 5,346 21,528 26,874 ( 873 ) 1968 2023

7039 Alonda Boulevard, LLC Paramount Meadows Nursing Center Paramount , CA — 3,640 15,380 369 3,640 15,749 19,389 ( 623 ) 1969 2023

10625 Leffingwell Road, LLC Norwalk Meadows Nursing Center Norwalk , CA — 4,932 14,229 — 4,932 14,229 19,161 ( 586 ) 1964 2023

Bobier Drive, LLC La Fuente Post Acute Vista , CA — 4,882 20,793 — 4,882 20,793 25,675 ( 748 ) 1990 2023

Capitola 1935 Realty LLC Pacific Coast Manor Capitola , CA — 5,231 16,321 — 5,231 16,321 21,552 ( 493 ) 1964 2023

Morgan Hills Realty LLC Pacific Hills Manor Morgan Hill , CA — 3,239 14,418 — 3,239 14,418 17,657 ( 447 ) 2014 2023

CTR Partnership, L.P.

Columbia Post Acute Columbia, MO — 1,619 15,678 — 1,619 15,678 17,297 ( 352 ) 2017 2024

CTR Partnership, L.P.

Houston Transitional Care Houston, TX — 2,668 17,434 — 2,668 17,434 20,102 ( 399 ) 2022 2024

1070 Old Ocean Highway, LLC Brunswick Rehabilitation and Healthcare Center Bolivia, NC — 551 16,589 — 551 16,589 17,140 ( 282 ) 2009 2024

86 Old Airport Road, LLC Fletcher Rehabilitation and Healthcare Center Fletcher, NC — 1,547 15,316 — 1,547 15,316 16,863 ( 263 ) 2002 2024

7166 Jordan Road, LLC Ramseur Rehabilitation and Healthcare Center Ramseur, NC — 747 15,085 — 747 15,085 15,832 ( 275 ) 2002 2024

1930 West Sugar Creek Road, LLC Rockwell Park Rehabilitation and Healthcare Center Charlotte, NC — 2,217 16,213 — 2,217 16,213 18,430 ( 278 ) 1993 2024

3514 Sidney Road, LLC Seven Oaks Rehabilitation and Healthcare Center Columbia, SC — 583 10,847 — 583 10,847 11,430 ( 184 ) 1980 2024

8170 Murray Propco, LLC Gilroy Healthcare and Rehabilitation Center Gilroy, CA — 6,539 19,162 — 6,539 19,162 25,701 ( 206 ) 1968 2024

CTR Partnership, L.P.

Glenburnie Nursing & Rehabilitation Center Richmond, VA — — 31,567 — — 31,567 31,567 ( 274 ) 2005 2024

CTR Partnership, L.P.

Dennett Rehab Center Oakland, MD — 1,134 18,227 — 1,134 18,227 19,361 ( 131 ) 2023 2024

CTR Partnership, L.P.

Mountain City Rehab Center Frostburg, MD — 853 20,334 — 853 20,334 21,187 ( 135 ) 1995 2024

CTR Partnership, L.P.

South Hills Post Acute Bethel Park, PA — 1,835 12,726 — 1,835 12,726 14,561 ( 58 ) 2021 2024

CTR Partnership, L.P.

Peters Township Post Acute Canonsburg, PA — 1,651 12,509 — 1,651 12,509 14,160 ( 57 ) 1988 2024

CTR Partnership, L.P.

Monroeville Post Acute Monroeville, PA — 1,182 10,906 — 1,182 10,906 12,088 ( 48 ) 1996 2024

CTR Partnership, L.P.

Whitehall Borough Post Acute Pittsburgh, PA — 1,323 13,119 — 1,323 13,119 14,442 ( 57 ) 1999 2024

704 Dupree Road TN LLC Haywood Post Acute Brownsville, TN — 508 17,027 — 508 17,027 17,535 ( 38 ) 2022 2024

Monroeville, PA — 1,182 10,906 — 1,182 10,906 12,088 ( 331 ) 1996 2024

Pittsburgh, PA — 1,323 13,119 — 1,323 13,119 14,442 ( 398 ) 1999 2024

Brownsville, TN — 508 17,027 — 508 17,027 17,535 ( 496 ) 2022 2024

McKenzie, TN — 1,187 16,873 — 1,187 16,873 18,060 ( 560 ) 2020 2024

Clarksville, TN — 1,785 21,328 — 1,785 21,328 23,113 ( 682 ) 2018 2024

Hohenwald, TN — 826 11,505 — 826 11,505 12,331 ( 370 ) 1996 2024

Cookeville, TN — 1,636 20,941 — 1,636 20,941 22,577 ( 693 ) 2024 2024

Lexington, TN — 551 15,171 — 551 15,171 15,722 ( 436 ) 2024 2024

Selmer, TN — 765 19,394 500 765 19,894 20,659 ( 573 ) 1995 2024

Mount Juliet, TN — 1,719 12,640 — 1,719 12,640 14,359 ( 414 ) 2021 2024

Murfreesboro, TN — 1,607 7,649 — 1,607 7,649 9,256 ( 297 ) 1996 2024

Goodlettsville, TN — 1,324 13,075 — 1,324 13,075 14,399 ( 417 ) 2005 2024

Waverly, TN — 1,071 9,821 — 1,071 9,821 10,892 ( 365 ) 1989 2024

Dyersburg, TN — 1,122 30,135 — 1,122 30,135 31,257 ( 867 ) 1989 2024

Humboldt, TN — 810 10,127 — 810 10,127 10,937 ( 329 ) 2011 2024

Paris, TN — 963 26,215 — 963 26,215 27,178 ( 763 ) 2023 2024

Union City, TN — 885 14,562 — 885 14,562 15,447 ( 411 ) 1996 2024

Huntsville, AL — 1,246 9,659 64 1,246 9,723 10,969 ( 303 ) 2006 2024

Martin, TN — 819 9,771 — 819 9,771 10,590 ( 274 ) 2023 2024

Pulaski, TN — 437 13,488 483 437 13,971 14,408 ( 360 ) 1991 2024

Knoxville, TN — 1,181 15,678 107 1,181 15,785 16,966 ( 411 ) 1972 2024

Knoxville, TN — 1,662 1,188 — 1,662 1,188 2,850 ( 65 ) 2015 2024

Cordova, TN — 482 12,015 — 482 12,015 12,497 ( 318 ) 1997 2024

Memphis, TN — 788 9,153 — 788 9,153 9,941 ( 280 ) 1964 2024

Covington, TN — 794 15,735 — 794 15,735 16,529 ( 449 ) 2023 2024

Jackson, TN — 960 16,359 — 960 16,359 17,319 ( 439 ) 2022 2024

Jackson, TN — 663 17,643 — 663 17,643 18,306 ( 473 ) 1997 2024

Jackson, TN — 1,779 6,929 — 1,779 6,929 8,708 ( 236 ) 2013 2024

Memphis, TN — 1,764 18,429 — 1,764 18,429 20,193 ( 518 ) 2020 2024

Nashville, TN — 3,538 16,439 — 3,538 16,439 19,977 ( 448 ) 1986 2025

Bremerton, WA — 1,313 16,190 16 1,313 16,206 17,519 ( 255 ) 1975 2025

Port Angeles, WA — 519 14,442 31 519 14,473 14,992 ( 222 ) 1993 2025

Bremerton, WA — 1,538 16,855 31 1,538 16,886 18,424 ( 265 ) 1984 2025

Edmonds, WA — 5,670 14,385 180 5,670 14,565 20,235 ( 223 ) 1974 2025

Sequim, WA — 581 16,411 12 581 16,423 17,004 ( 272 ) 2007 2025

Othello, WA — 226 3,686 — 226 3,686 3,912 ( 65 ) 1974 2025

Pullman, WA — 499 5,446 17 499 5,463 5,962 ( 88 ) 1966 2025

Helens, OR — 2,431 21,748 10 2,431 21,758 24,189 ( 344 ) 2008 2025

Coeur d'Alene, ID — 1,587 7,169 — 1,587 7,169 8,756 ( 116 ) 2007 2025

Coeur d'Alene, ID — 1,496 9,262 — 1,496 9,262 10,758 ( 143 ) 2011 2025

Colton, CA — 4,464 24,722 — 4,464 24,722 29,186 ( 224 ) 1990 2025

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

175 Hospital Drive TN LLC Cherrywood Post Acute McKenzie, TN — 1,187 16,873 — 1,187 16,873 18,060 ( 42 ) 2020 2024

900 Professional Park Drive TN LLC Park Meadows Post Acute Clarksville, TN — 1,785 21,328 — 1,785 21,328 23,113 ( 52 ) 2018 2024

119 Kittrell Street TN LLC Lewis Park Post Acute Hohenwald, TN — 826 11,505 — 826 11,505 12,331 ( 28 ) 1996 2024

444 One Eleven Place TN LLC Grandview Post Acute Cookeville, TN — 1,636 20,941 — 1,636 20,941 22,577 ( 53 ) 2024 2024

727 East Church Street TN LLC Lexington Post Acute Lexington, TN — 551 15,171 — 551 15,171 15,722 ( 34 ) 2024 2024

835 East Poplar Avenue TN LLC Selmer Post Acute Selmer, TN — 765 19,394 500 765 19,894 20,659 ( 43 ) 1995 2024

2650 North Mt Juliet Road TN LLC Cedar Creek Post Acute Mount Juliet, TN — 1,719 12,640 — 1,719 12,640 14,359 ( 32 ) 2021 2024

202 East Mtcs Road TN LLC Stone River Post Acute Murfreesboro, TN — 1,607 7,649 — 1,607 7,649 9,256 ( 23 ) 1996 2024

813 S Dickerson Rd TN LLC Alta Heights Post Acute Goodlettsville, TN — 1,324 13,075 — 1,324 13,075 14,399 ( 32 ) 2005 2024

895 Powers Blvd TN LLC Waverly Hills Post Acute Waverly, TN — 1,071 9,821 — 1,071 9,821 10,892 ( 28 ) 1989 2024

1900 Parr Avenue TN LLC Okeena Health and Rehabilitation Center Dyersburg, TN — 1,122 30,135 — 1,122 30,135 31,257 ( 67 ) 1989 2024

2031 Avondale Street TN LLC Avondale Health and Rehabilitation Center Humboldt, TN — 810 10,127 — 810 10,127 10,937 ( 25 ) 2011 2024

800 Volunteer Drive TN LLC Riverbend Health and Rehabilitation Center Paris, TN — 963 26,215 — 963 26,215 27,178 ( 59 ) 2023 2024

1630 E Reelfoot Ave TN LLC Union City Health and Rehabilitation Union City, TN — 885 14,562 — 885 14,562 15,447 — 1996 2024

5275 Millennium Drive AL LLC The Health Center at Research Park Huntsville, AL — 1,246 9,659 64 1,246 9,723 10,969 — 2006 2024

460 Hannings Lane TN LLC VanAyer Senior Living and Rehabilitation Martin, TN — 819 9,771 — 819 9,771 10,590 — 2023 2024

1245 E College St TN LLC Meadowbrook Healthcare and Rehabilitation Center Pulaski, TN — 437 13,488 483 437 13,971 14,408 — 1991 2024

7424 Middlebrook Pike TN LLC Legacy Park Health and Rehabilitation Knoxville, TN — 1,181 15,678 106 1,181 15,784 16,965 — 1972 2024

7512 Middlebrook Pike TN LLC Wellpark Health and Rehabilitation Knoxville, TN — 1,662 1,188 — 1,662 1,188 2,850 — 2015 2024

1536 Appling Care Lane TN LLC Applingwood Post Acute Cordova, TN — 482 12,015 — 482 12,015 12,497 — 1997 2024

5070 Sanderlin Avenue TN LLC Shelby Oaks Post Acute Memphis, TN — 788 9,153 — 788 9,153 9,941 — 1964 2024

765 Bert Johnston Avenue TN LLC Covington Post Acute Covington, TN — 794 15,735 — 794 15,735 16,529 — 2023 2024

45 Forest Cove TN LLC Cypress Grove Post Acute Jackson, TN — 960 16,359 — 960 16,359 17,319 — 2022 2024

121 Physicians Dr TN LLC Northbrooke Post Acute Jackson, TN — 663 17,643 — 663 17,643 18,306 — 1997 2024

597 West Forest Avenue TN LLC West Tennessee Transitional Care Jackson, TN — 1,779 6,929 — 1,779 6,929 8,708 — 2013 2024

1513 N 2nd Street TN LLC Harborview Post Acute Memphis, TN — 1,764 18,429 — 1,764 18,429 20,193 — 2020 2024

Virginia Beach, VA — 2,712 20,527 — 2,712 20,527 23,239 ( 88 ) 1990 2025

Culpeper, VA — 5,769 62,199 — 5,769 62,199 67,968 ( 267 ) 1985 2025

Pulaski, VA — 435 33,350 — 435 33,350 33,785 ( 149 ) 1982 2025

Oxford, NC — 297 41,362 — 297 41,362 41,659 ( 182 ) 1979 2025

Williamsport, MD — 662 38,776 — 662 38,776 39,438 ( 170 ) 2012 2025

Brandon, MS — 2,843 32,010 — 2,843 32,010 34,853 ( 148 ) 2004 2025

Jackson, MS — 1,458 11,429 — 1,458 11,429 12,887 ( 60 ) 1966 2025

Cleveland, MS — 365 15,074 — 365 15,074 15,439 ( 70 ) 1978 2025

Jackson, MS — 1,070 13,600 — 1,070 13,600 14,670 ( 60 ) 1968 2025

Jackson, MS — 1,818 27,568 — 1,818 27,568 29,386 ( 124 ) 1977 2025

McComb, MS — 705 19,549 — 705 19,549 20,254 ( 89 ) 1969 2025

Ruleville, MS — 97 16,698 — 97 16,698 16,795 ( 75 ) 1978 2025

Tupelo, MS — 282 16,963 — 282 16,963 17,245 ( 77 ) 1980 2025

Norwalk, CA — 966 5,082 2,213 966 7,295 8,261 ( 6,572 ) 2011 1999

Salt Lake City, UT — 1,962 11,035 464 1,962 11,499 13,461 ( 4,784 ) 1994 2011

Wayne, NE — 130 3,061 122 130 3,183 3,313 ( 1,500 ) 1978 2011

West Bend, IA — 180 3,352 — 180 3,352 3,532 ( 1,512 ) 2006 2011

Hawarden, IA — 110 3,522 75 110 3,597 3,707 ( 1,525 ) 1974 2011

Randolph, NE — 130 1,571 22 130 1,593 1,723 ( 1,158 ) 2011 2011

Salmon, ID — 168 2,496 — 168 2,496 2,664 ( 837 ) 2012 2012

Willard, OH — 144 11,097 58 144 11,155 11,299 ( 2,889 ) 1985 2015

Middletown, OH — 990 7,484 380 990 7,864 8,854 ( 2,124 ) 1985 2015

Turlock, CA — 1,258 16,526 75 1,258 16,601 17,859 ( 3,897 ) 1986 2016

Bridgeport, TX — 980 27,917 — 980 27,917 28,897 ( 6,340 ) 2014 2016

Saratoga, CA — 8,709 9,736 1,397 8,709 11,133 19,842 ( 2,571 ) 2004 2018

Huntington, WV — 601 6,385 26 601 6,411 7,012 ( 1,188 ) 1924 2018

Carmel, IL — 298 8,393 — 298 8,393 8,691 ( 1,642 ) 2004 2019

Shreveport, LA — 3,217 21,195 2,729 3,217 23,924 27,141 ( 4,960 ) 2008 2019

Corsicana, TX — 143 11,429 498 143 11,927 12,070 ( 2,328 ) 2007 2019

Decatur, IL — 131 12,499 91 131 12,590 12,721 ( 1,354 ) 2003 2022

San Diego, CA — 4,949 20,227 — 4,949 20,227 25,176 ( 1,363 ) 1994 2023

Houston, TX — 2,419 14,525 — 2,419 14,525 16,944 ( 731 ) 2022 2024

Catonsville, MD — 1,622 10,421 — 1,622 10,421 12,043 ( 409 ) 2023 2024

Los Alamitos, CA — 10,420 23,802 — 10,419 23,802 34,221 ( 459 ) 2003 2025

Escondido, CA — 5,230 3,666 — 5,230 3,666 8,896 ( 70 ) 1996 2025

Norwood, OH — 1,316 10,071 1,021 1,316 11,092 12,408 ( 2,898 ) 1991 2016

— 322,839 2,388,121 119,509 321,225 2,509,243 2,830,468 ( 405,985 )

Multi-Service Campus Properties:

Ensign Southland LLC Southland Care Norwalk, CA — 966 5,082 2,213 966 7,295 8,261 ( 6,356 ) 2011 1999

Mission CCRC LLC St.

Joseph's Villa Salt Lake City, UT — 1,962 11,035 464 1,962 11,499 13,461 ( 4,503 ) 1994 2011

Wayne Health Holdings LLC Careage of Wayne Wayne, NE — 130 3,061 122 130 3,183 3,313 ( 1,401 ) 1978 2011

4th Street Holdings LLC West Bend Care Center West Bend, IA — 180 3,352 — 180 3,352 3,532 ( 1,408 ) 2006 2011

Big Sioux River Health Holdings LLC Hillcrest Health Hawarden, IA — 110 3,522 75 110 3,597 3,707 ( 1,421 ) 1974 2011

Prairie Health Holdings LLC Colonial Manor of Randolph Randolph, NE — 130 1,571 22 130 1,593 1,723 ( 1,078 ) 2011 2011

Salmon River Health Holdings LLC Discovery Care Center Salmon, ID — 168 2,496 — 168 2,496 2,664 ( 775 ) 2012 2012

Senior Housing Communities:

Rosenburg, TX — 124 2,301 392 124 2,693 2,817 ( 1,767 ) 2007 2006

Mesa, AZ — 1,893 5,268 1,210 1,893 6,478 8,371 ( 4,480 ) 1986 2007

Englewood, CO — 420 1,160 189 420 1,349 1,769 ( 616 ) 2011 2009

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

CTR Partnership, L.P.

Liberty Nursing Center of Willard Willard, OH — 144 11,097 50 144 11,147 11,291 ( 2,608 ) 1985 2015

CTR Partnership, L.P.

Premier Estates of Middletown/Premier Retirement Estates of Middletown Middletown, OH — 990 7,484 380 990 7,864 8,854 ( 1,900 ) 1985 2015

CTR Partnership, L.P.

Turlock Nursing and Rehabilitation Center Turlock, CA — 1,258 16,526 75 1,258 16,601 17,859 ( 3,477 ) 1986 2016

CTR Partnership, L.P.

Bridgeport Medical Lodge Bridgeport, TX — 980 27,917 — 980 27,917 28,897 ( 5,642 ) 2014 2016

CTR Partnership, L.P.

The Villas at Saratoga Saratoga, CA — 8,709 9,736 1,397 8,709 11,133 19,842 ( 2,180 ) 2004 2018

CTR Partnership, L.P.

Madison Park Healthcare Huntington, WV — 601 6,385 — 601 6,385 6,986 ( 1,022 ) 1924 2018

CTR Partnership, L.P.

Oakview Heights Nursing & Rehabilitation Center Mt.

Carmel, IL — 298 8,393 — 298 8,393 8,691 ( 1,405 ) 2004 2019

Gulf Coast Buyer 1 LLC Spring Lake Skilled Nursing and Rehabilitation Shreveport, LA — 3,217 21,195 2,729 3,217 23,924 27,141 ( 4,136 ) 2008 2019

Gulf Coast Buyer 1 LLC The Village at Heritage Oaks Corsicana, TX — 143 11,429 462 143 11,891 12,034 ( 1,974 ) 2007 2019

CTR Partnership, L.P.

City Creek Post-Acute and Assisted Living Sacramento, CA — 3,980 10,106 1,488 3,980 11,594 15,574 ( 1,913 ) 1990 2019

Northshore Healthcare Holdings LLC San Juan Capistrano Senior Living San Juan Capistrano, CA — 11,176 25,298 350 11,176 25,648 36,824 ( 2,615 ) 1999 2021

Northshore Healthcare Holdings LLC Camarillo Senior Living Camarillo, CA — 7,516 30,552 — 7,516 30,552 38,068 ( 3,014 ) 2000 2021

Northshore Healthcare Holdings LLC Bayshire Carlsbad Carlsbad, CA — 7,398 19,714 — 7,398 19,714 27,112 ( 1,973 ) 1999 2021

Northshore Healthcare Holdings LLC Bayshire Rancho Mirage Rancho Mirage, CA — 4,024 16,790 — 4,024 16,790 20,814 ( 1,715 ) 2000 2021

CTR Partnership, L.P.

Imboden Creek Living Center Decatur, IL — 131 12,499 91 131 12,590 12,721 ( 999 ) 2003 2022

4075 54th Street, LLC Jacob Healthcare Center San Diego , CA — 4,949 20,227 — 4,949 20,227 25,176 ( 835 ) 1994 2023

1740 San Dimas, LLC Bayshire San Dimas San Dimas, CA — 9,592 5,936 — 9,592 5,936 15,528 ( 136 ) 1999 2024

17803 Imperial Hwy, LLC Bayshire Yorba Linda Yorba Linda, CA — 6,493 6,025 — 6,493 6,025 12,518 ( 126 ) 1999 2024

CTR Partnership, L.P.

North Houston Transitional Care Houston, TX — 2,419 14,525 — 2,419 14,525 16,944 ( 332 ) 2022 2024

CTR Partnership, L.P.

Bayshire Torrey Pines San Diego, CA — 19,009 13,079 — 19,009 13,079 32,088 ( 270 ) 1999 2024

CTR Partnership, L.P.

Ridgeway Rehab Center & Ridgeway Village Assisted Living Catonsville, MD — 1,622 10,421 — 1,622 10,421 12,043 ( 84 ) 2023 2024

— 98,295 335,453 9,918 98,295 345,371 443,666 ( 55,298 )

Assisted and Independent Living Properties:

Avenue N Holdings LLC Cambridge ALF Rosenburg, TX — 124 2,301 392 124 2,693 2,817 ( 1,690 ) 2007 2006

Moenium Holdings LLC Grand Court Mesa, AZ — 1,893 5,268 1,210 1,893 6,478 8,371 ( 4,292 ) 1986 2007

Lafayette Health Holdings LLC Chateau Des Mons Englewood, CO — 420 1,160 189 420 1,349 1,769 ( 581 ) 2011 2009

Expo Park Health Holdings LLC Canterbury Gardens Aurora, CO — 570 1,692 248 570 1,940 2,510 ( 1,182 ) 1986 2010

Wisteria Health Holdings LLC Wisteria IND Abilene, TX — 244 3,241 81 244 3,322 3,566 ( 2,229 ) 2008 2011

Everglades Health Holdings LLC Lexington Ventura, CA — 1,542 4,012 113 1,542 4,125 5,667 ( 1,221 ) 1990 2011

Flamingo Health Holdings LLC Desert Springs ALF Las Vegas, NV — 908 4,767 281 908 5,048 5,956 ( 3,509 ) 1986 2011

18th Place Health Holdings LLC Rose Court Phoenix, AZ — 1,011 2,053 490 1,011 2,543 3,554 ( 1,321 ) 1974 2011

Boardwalk Health Holdings LLC Park Place Reno, NV — 367 1,633 52 367 1,685 2,052 ( 732 ) 1993 2012

Willows Health Holdings LLC Cascade Plaza Redmond, WA — 2,835 3,784 395 2,835 4,179 7,014 ( 1,792 ) 2013 2013

Lockwood Health Holdings LLC Santa Maria Santa Maria, CA — 1,792 2,253 585 1,792 2,838 4,630 ( 1,834 ) 1967 2013

Aurora, CO — 570 1,692 248 570 1,940 2,510 ( 1,261 ) 1986 2010

Abilene, TX — 244 3,241 81 244 3,322 3,566 ( 2,413 ) 2008 2011

Ventura, CA — 1,542 4,012 113 1,542 4,125 5,667 ( 1,302 ) 1990 2011

Las Vegas, NV — 908 4,767 281 908 5,048 5,956 ( 3,751 ) 1986 2011

Phoenix, AZ — 1,011 2,053 490 1,011 2,543 3,554 ( 1,404 ) 1974 2011

Reno, NV — 367 1,633 52 367 1,685 2,052 ( 784 ) 1993 2012

Redmond, WA — 2,835 3,784 395 2,835 4,179 7,014 ( 1,937 ) 2013 2013

Santa Maria, CA — 1,792 2,253 585 1,792 2,838 4,630 ( 1,960 ) 1967 2013

Orem, UT — 444 2,265 176 444 2,441 2,885 ( 731 ) 1995 2013

Glendale, AZ — 61 304 372 61 676 737 ( 584 ) 2004 2002

Riverside, CA — 342 802 3,360 342 4,162 4,504 ( 3,828 ) 2012 2009

Salt Lake City, UT — 411 2,312 258 411 2,570 2,981 ( 2,277 ) 1994 2011

New Bern, NC — 312 6,919 155 129 2,946 3,075 ( 149 ) 2010 2016

Pikeville, NC — 131 4,157 — 52 1,674 1,726 ( 84 ) 2011 2016

Lodi, CA — 392 3,605 59 392 3,664 4,056 ( 854 ) 1984 2016

Brookfield, WI — 493 14,002 184 243 6,170 6,413 ( 541 ) 2013 2017

New Berlin, WI — 356 10,812 212 190 5,245 5,435 ( 452 ) 2016 2017

Escondido, CA — 4,362 7,997 — 4,362 7,997 12,359 ( 1,327 ) 2015 2019

Bountiful, UT — 2,480 4,804 15 2,480 4,819 7,299 ( 771 ) 1999 2020

Bartlett, IL — 1,964 5,650 — 1,964 5,650 7,614 ( 423 ) 2017 2023

Elmhurst, IL — 2,852 7,348 — 2,852 7,348 10,200 ( 542 ) 2017 2023

Lansing, MI — 888 9,871 — 888 9,871 10,759 ( 722 ) 2018 2023

Beavercreek, OH — 1,165 8,616 — 1,165 8,616 9,781 ( 622 ) 2018 2023

San Bernardino, CA — 1,631 9,263 — 1,631 9,263 10,894 ( 476 ) 2003 2024

Boonsboro, MD — 1,205 508 — 1,205 508 1,713 ( 16 ) 2022 2024

Concord, CA — 7,088 13,331 — 7,088 13,331 20,419 ( 286 ) 2020 2025

Louis, MO — 3,349 10,335 — 3,349 10,335 13,684 ( 46 ) 2004 2025

Dayton, OH — 976 11,158 — 976 11,158 12,134 ( 53 ) 2022 2025

San Juan Capistrano, CA — 11,176 25,298 350 11,176 25,648 36,824 ( 3,307 ) 1999 2021

Camarillo, CA — 7,516 30,552 — 7,516 30,552 38,068 ( 3,799 ) 2000 2021

Carlsbad, CA — 7,398 19,714 — 7,398 19,714 27,112 ( 2,488 ) 1999 2021

Rancho Mirage, CA — 4,024 16,790 — 4,024 16,790 20,814 ( 2,162 ) 2000 2021

San Dimas, CA — 9,592 5,936 — 9,592 5,936 15,528 ( 318 ) 1999 2024

Yorba Linda, CA — 6,493 6,025 — 6,493 6,025 12,518 ( 293 ) 1999 2024

San Diego,CA — 19,009 13,079 — 19,009 13,079 32,088 ( 631 ) 1999 2024

Newcastle upon Tyne, UK — 993 4,962 — 993 4,962 5,955 ( 89 ) 1990 2025

Cornwall, UK — 878 2,872 305 878 3,177 4,055 ( 61 ) 1930 2025

Wigan, UK — 912 2,070 — 912 2,070 2,982 ( 45 ) 1970 2025

Notts, UK — 500 3,564 — 500 3,564 4,064 ( 59 ) 1990 2025

Cheshire, UK — 1,133 1,378 163 1,133 1,541 2,674 ( 38 ) 1985 2025

Leicester, UK — 1,561 5,848 — 1,561 5,848 7,409 ( 108 ) 1970 2025

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

1 unchanged sentence

(dollars in thousands)

Saratoga Health Holdings LLC Lake Ridge Orem, UT — 444 2,265 176 444 2,441 2,885 ( 681 ) 1995 2013

Sky Holdings AZ LLC Desert Sky Assisted Living Glendale, AZ — 61 304 372 61 676 737 ( 566 ) 2004 2002

Lemon River Holdings LLC The Grove Assisted Living Riverside, CA — 342 802 3,360 342 4,162 4,504 ( 3,623 ) 2012 2009

Mission CCRC LLC St.

Joseph's Villa IND Salt Lake City, UT — 411 2,312 258 411 2,570 2,981 ( 2,111 ) 1994 2011

CTR Partnership, L.P.

Prelude Cottages of Woodbury Woodbury, MN — 430 6,714 289 430 7,003 7,433 ( 1,733 ) 2011 2014

CTR Partnership, L.P.

Lamplight Inn of Baltimore Baltimore, MD — — 3,697 733 — — — — 2014 2016

CTR Partnership, L.P.

Croatan Village New Bern, NC — 312 6,919 155 129 2,946 3,075 ( 30 ) 2010 2016

CTR Partnership, L.P.

Countryside Village Pikeville, NC — 131 4,157 — 52 1,674 1,726 ( 17 ) 2011 2016

CTR Partnership, L.P.

Arbor Place Lodi, CA — 392 3,605 59 392 3,664 4,056 ( 759 ) 1984 2016

CTR Partnership, L.P.

Applewood of Brookfield Brookfield, WI — 493 14,002 105 243 6,091 6,334 ( 357 ) 2013 2017

CTR Partnership, L.P.

Applewood of New Berlin New Berlin, WI — 356 10,812 139 190 5,172 5,362 ( 295 ) 2016 2017

CTR Partnership, L.P.

Memory Care Cottages in White Bear Lake White Bear Lake, MN — 1,611 5,633 — 1,611 5,633 7,244 ( 1,056 ) 2016 2017

CTR Partnership, L.P.

Vista Del Lago Escondido, CA — 4,362 7,997 — 4,362 7,997 12,359 ( 1,117 ) 2015 2019

CTR Partnership, L.P.

Inn at Barton Creek Bountiful, UT — 2,480 4,804 15 2,480 4,819 7,299 ( 640 ) 1999 2020

CTR Partnership, L.P.

Chapters Living of Northwest Chicago Bartlett , IL — 1,964 5,650 — 1,964 5,650 7,614 ( 265 ) 2017 2023

CTR Partnership, L.P.

Chapters Living of Elmhurst Elmhurst , IL — 2,852 7,348 — 2,852 7,348 10,200 ( 339 ) 2017 2023

CTR Partnership, L.P.

The Ridge at Lansing Lansing , MI — 888 9,871 — 888 9,871 10,759 ( 443 ) 2018 2023

CTR Partnership, L.P.

The Ridge at Beavercreek Beavercreek , OH — 1,165 8,616 — 1,165 8,616 9,781 ( 381 ) 2018 2023

Street PropCo, LLC Villas at San Bernardino San Bernardino, CA — 1,631 9,263 — 1,631 9,263 10,894 ( 238 ) 2003 2024

CTR Partnership, L.P.

South Mountain Boonsboro, MD — 1,205 508 — 1,205 508 1,713 — 2022 2024

Northants, UK — — 1,574 1,694 — 3,268 3,268 ( 38 ) 1800 2025

Northants, UK — — 4,880 — — 4,880 4,880 ( 91 ) 2017 2025

Cheshire, UK — 1,610 3,651 85 1,610 3,736 5,346 ( 83 ) 1970 2025

Nottingham, UK — 747 4,795 — 747 4,795 5,542 ( 83 ) 1990 2025

Chester, UK — 1,365 775 — 1,365 775 2,140 ( 18 ) 1970 2025

Witney, UK — — 10,459 — — 10,459 10,459 ( 277 ) 1860 2025

Wigan, UK — 1,149 3,785 — 1,149 3,785 4,934 ( 76 ) 1960 2025

Cheshire, UK — 452 1,435 — 452 1,435 1,887 ( 26 ) 1980 2025

Warrington, UK — 742 2,445 — 742 2,445 3,187 ( 50 ) 1960 2025

Essex, UK — 1,995 6,228 — 1,995 6,228 8,223 ( 108 ) 1998 2025

Wigan, UK — 577 2,382 — 577 2,382 2,959 ( 48 ) 1960 2025

Leigh, UK — 1,199 2,218 — 1,199 2,218 3,417 ( 53 ) 1960 2025

Cheshire, UK — — 1,829 — — 1,829 1,829 ( 37 ) 1974 2025

Smethwick, UK — 742 5,655 — 742 5,655 6,397 ( 97 ) 2000 2025

Higher Ince, UK — 1,147 2,154 — 1,147 2,154 3,301 ( 51 ) 1990 2025

Ely, UK — 7,528 5,303 — 7,528 5,303 12,831 ( 136 ) 1885 2025

Cheshire, UK — 873 4,253 — 873 4,253 5,126 ( 76 ) 1980 2025

Leigh, UK — 615 2,164 — 615 2,164 2,779 ( 42 ) 1968 2025

Suffolk, UK — — 7,018 — — 7,018 7,018 ( 128 ) 2008 2025

Worcestershire, UK — 2,236 1,226 — 2,236 1,226 3,462 ( 25 ) 1850 2025

Staffordshire, UK — 1,456 2,012 — 1,456 2,012 3,468 ( 43 ) 1960 2025

Leics, UK — 1,212 3,197 — 1,212 3,197 4,409 ( 60 ) 2003 2025

Coventry, UK — — 4,059 — — 4,059 4,059 ( 69 ) 1998 2025

Cheshire, UK — 725 867 — 725 867 1,592 ( 19 ) 1980 2025

Cheshire, UK — 1,262 2,626 — 1,262 2,626 3,888 ( 55 ) 1970 2025

Cheshire, UK — 1,469 916 — 1,469 916 2,385 ( 20 ) 1970 2025

Wigan, UK — 1,308 2,223 — 1,308 2,223 3,531 ( 55 ) 1980 2025

Lancashire, UK — 1,734 3,252 — 1,734 3,252 4,986 ( 67 ) 1890 2025

Cheshire, UK — 1,637 5,524 188 1,637 5,712 7,349 ( 112 ) 1980 2025

Malvern, UK — — 3,457 — — 3,457 3,457 ( 61 ) 2009 2025

Wirral, UK — — 8,942 — — 8,942 8,942 ( 148 ) 2010 2025

Wigan, UK — 514 2,040 — 514 2,040 2,554 ( 38 ) 1960 2025

Stourbridge, UK — 1,163 1,602 — 1,163 1,602 2,765 ( 33 ) 1850 2025

Norfolk, UK — 1,820 3,517 5 1,820 3,522 5,342 ( 64 ) 1997 2025

North Yorkshire, UK — 950 4,033 — 950 4,033 4,983 ( 70 ) 2005 2025

North Yorkshire, UK — — 9,791 — — 9,791 9,791 ( 168 ) 2010 2025

North Yorkshire, UK — — 7,834 — — 7,834 7,834 ( 134 ) 2015 2025

Cleveland, UK — 1,149 10,465 — 1,149 10,465 11,614 ( 195 ) 2009 2025

Bristol, UK — 3,266 11,030 128 3,266 11,158 14,424 ( 190 ) 1890 2025

Newcastle upon Tyne, UK — 1,184 5,066 — 1,184 5,066 6,250 ( 88 ) 2005 2025

Newcastle upon Tyne, UK — 296 1,414 — 296 1,414 1,710 ( 25 ) 2005 2025

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2025

(dollars in thousands)

Middlesbrough, UK — 556 5,464 — 556 5,464 6,020 ( 93 ) 2005 2025

Tyne and Wear, UK — 276 3,674 — 276 3,674 3,950 ( 60 ) 2006 2025

Newcastle upon Tyne, UK — 787 5,063 641 787 5,704 6,491 ( 82 ) 2002 2025

Shildon, UK — 373 2,856 — 373 2,856 3,229 ( 48 ) 2005 2025

Glasgow, UK — 854 9,833 — 854 9,833 10,687 ( 171 ) 1996 2025

Glasgow, UK — 276 5,638 — 276 5,638 5,914 ( 97 ) 1992 2025

Harrogate, UK — 2,331 15,893 — 2,331 15,893 18,224 ( 271 ) 2007 2025

Motherwell, UK — 1,427 3,210 — 1,427 3,210 4,637 ( 62 ) 1990 2025

Falkirk, UK — 391 2,656 — 391 2,656 3,047 ( 49 ) 1860 2025

Stirling, UK — 932 6,125 — 932 6,125 7,057 ( 107 ) 2004 2025

Carlisle, UK — — 8,529 — — 8,529 8,529 ( 148 ) 2006 2025

Carlisle, UK — — 3,698 — — 3,698 3,698 ( 64 ) 2006 2025

Carlisle, UK — — 2,863 — — 2,863 2,863 ( 49 ) 2006 2025

York, UK — 1,025 6,779 344 1,025 7,123 8,148 ( 128 ) 1996 2025

Chipping Norton, UK — 10,824 2,237 — 10,824 2,237 13,061 ( 47 ) 1250 2025

Devon, UK — 4,085 2,497 3 4,085 2,500 6,585 ( 59 ) 1920 2025

Ipswich, UK — 1,482 5,765 — 1,482 5,765 7,247 ( 100 ) 1970 2025

Ipswich, UK — 2,451 10,128 — 2,451 10,128 12,579 ( 173 ) 2011 2025

Bristol, UK — 2,291 8,590 81 2,291 8,671 10,962 ( 147 ) 2014 2025

Worcester, UK — 2,563 5,844 — 2,563 5,844 8,407 ( 105 ) 1995 2025

Wakefield, UK — 1,722 2,198 — 1,722 2,198 3,920 ( 41 ) 1994 2025

Bradford, UK — 866 2,908 — 866 2,908 3,774 ( 55 ) 1990 2025

Castleford, UK — 1,257 3,291 — 1,257 3,291 4,548 ( 59 ) 1996 2025

Bradford, UK — 2,200 1,301 — 2,200 1,301 3,501 ( 23 ) 1998 2025

Bradford, UK — 993 2,979 — 993 2,979 3,972 ( 52 ) 1996 2025

Bradford, UK — 1,039 1,519 — 1,039 1,519 2,558 ( 27 ) 2003 2025

Glasgow, UK — 518 2,709 — 518 2,709 3,227 ( 48 ) 2004 2025

Glasgow, UK — 879 7,970 — 879 7,970 8,849 ( 149 ) 2000 2025

Sterlingshire, UK — 2,947 4,671 — 2,947 4,671 7,618 ( 112 ) 1996 2025

Lanarkshire, UK — 828 10,981 — 828 10,981 11,809 ( 197 ) 2005 2025

Renfrewshire, UK — 590 10,086 — 590 10,086 10,676 ( 175 ) 2003 2025

Aberdeen, UK — 337 9,231 — 337 9,231 9,568 ( 157 ) 2008 2025

West Lothian, UK — 1,724 2,087 — 1,724 2,087 3,811 ( 43 ) 1990 2025

Inverclyde, UK — 673 8,816 — 673 8,816 9,489 ( 158 ) 2006 2025

Ayrshire, UK — 343 4,974 — 343 4,974 5,317 ( 87 ) 2001 2025

Carlisle, UK — 703 5,039 — 703 5,039 5,742 ( 92 ) 1990 2025

Bury St Edmonds, UK — 3,951 5,017 — 3,951 5,017 8,968 ( 125 ) 1970 2025

Belfast, UK — — 6,604 — — 6,604 6,604 ( 125 ) 1990 2025

Donaghadee, UK — 1,786 2,125 — 1,786 2,125 3,911 ( 42 ) 1990 2025

Belfast, UK — 663 4,522 — 663 4,522 5,185 ( 81 ) 1990 2025

Hartlepool, UK — 634 11,364 — 634 11,364 11,998 ( 187 ) 2022 2025

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2025

(dollars in thousands)

Wiltshire, UK — 3,015 5,374 — 3,015 5,374 8,389 ( 95 ) 1800 2025

Norwich, UK — 3,655 — — 3,655 — 3,655 — N/A 2025

Suffolk, UK — 1,602 12,431 — 1,602 12,431 14,033 ( 203 ) 1600 2025

East Ayrshire, UK — 391 2,072 — 391 2,072 2,463 ( 36 ) 1840 2025

Cornwall, UK — 5,131 3,435 4 5,131 3,439 8,570 ( 79 ) 1980 2025

Belfast, UK — 749 6,110 — 749 6,110 6,859 ( 107 ) 2001 2025

Larne, UK — 1,107 7,509 — 1,107 7,509 8,616 ( 128 ) 2007 2025

South Molton, UK — 2,678 13,038 — 2,678 13,038 15,716 ( 221 ) 2012 2025

South Molton, UK — 2,512 4,232 — 2,512 4,232 6,744 ( 80 ) 1850 2025

Minehead, UK — 6,137 6,822 — 6,137 6,822 12,959 ( 144 ) 1900 2025

Nottinghamshire, UK — 1,197 11,010 73 1,197 11,083 12,280 ( 192 ) 2014 2025

Mansfield, UK — 620 2,382 58 620 2,440 3,060 ( 47 ) 1883 2025

Glasgow, UK — 708 2,985 — 708 2,985 3,693 ( 56 ) 1996 2025

Glasgow, UK — 352 855 — 352 855 1,207 ( 16 ) 1990 2025

Glasgow, UK — 1,108 2,931 — 1,108 2,931 4,039 ( 56 ) 1996 2025

New Romney, UK — 1,744 5,149 741 1,744 5,890 7,634 ( 93 ) 1997 2025

Kent, UK — 14,230 8,207 — 14,230 8,207 22,437 ( 207 ) 1995 2025

Kirkcaldy, UK — 547 5,733 — 547 5,733 6,280 ( 94 ) 2005 2025

Leven, UK — 447 2,548 — 447 2,548 2,995 ( 45 ) 1980 2025

Cowdenbeath, UK — 452 1,677 — 452 1,677 2,129 ( 33 ) 1990 2025

Auchtertool, UK — 559 2,502 — 559 2,502 3,061 ( 44 ) 1970 2025

Crossgates, UK — 446 3,480 — 446 3,480 3,926 ( 59 ) 2007 2025

Cardenden, UK — 334 2,522 — 334 2,522 2,856 ( 46 ) 1910 2025

Crossgates, UK — 261 1,437 — 261 1,437 1,698 ( 26 ) 1980 2025

Glenrothes, UK — 650 712 — 650 712 1,362 ( 14 ) 1994 2025

Falkland, UK — 584 4,987 — 584 4,987 5,571 ( 83 ) 2013 2025

Glenrothes, UK — 441 6,715 — 441 6,715 7,156 ( 110 ) 2009 2025

Kirkcaldy, UK — 615 3,337 — 615 3,337 3,952 ( 61 ) 1975 2025

Cellardyke, UK — 787 2,438 — 787 2,438 3,225 ( 45 ) 2000 2025

Cheshire, UK — 4,740 5,960 90 4,740 6,050 10,790 ( 142 ) 1900 2025

Shrewsbury, UK — 10,121 10,422 89 10,121 10,511 20,632 ( 275 ) 1905 2025

Wellington, UK — 3,579 10,715 — 3,579 10,715 14,294 ( 214 ) 1875 2025

Bridgnorth, UK — 5,961 7,038 56 5,961 7,094 13,055 ( 160 ) 1850 2025

Shrewsbury, UK — 1,899 9,161 71 1,899 9,232 11,131 ( 155 ) 1990 2025

Church Stretton, UK — 2,804 4,569 — 2,804 4,569 7,373 ( 94 ) 1779 2025

Darlington, UK — 820 2,477 — 820 2,477 3,297 ( 45 ) 1990 2025

Northamptonshire, UK — 2,131 8,199 — 2,131 8,199 10,330 ( 95 ) 1986 2025

Scarborough, UK — 634 2,600 — 634 2,600 3,234 ( 29 ) 2003 2025

Nuneaton, UK — 1,222 4,676 — 1,222 4,676 5,898 ( 51 ) 2000 2025

North Tyneside, UK — 840 7,340 — 840 7,340 8,180 ( 78 ) 1996 2025

Knottingley, UK — 788 3,110 — 788 3,110 3,898 ( 34 ) 1995 2025

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2025

(dollars in thousands)

Jarrow, UK — 906 3,313 — 906 3,313 4,219 ( 37 ) 2000 2025

Darlington UK — 1,760 3,327 — 1,760 3,327 5,087 ( 44 ) 2004 2025

Bilston, UK — 1,328 5,103 — 1,328 5,103 6,431 ( 33 ) 1995 2025

— 308,084 920,781 13,996 307,406 914,371 1,221,777 ( 61,115 )

Senior Housing Managed:

Kyle, TX — 1,697 12,707 — 1,697 12,707 14,404 ( 32 ) 2013 2025

League City, TX — 1,047 12,393 — 1,047 12,393 13,440 ( 27 ) 2013 2025

Manvel, TX — 1,091 9,165 — 1,091 9,165 10,256 ( 21 ) 2014 2025

— 3,835 34,265 — 3,835 34,265 38,100 ( 80 )

— $ 634,758 $ 3,343,167 $ 133,505 $ 632,466 $ 3,457,879 $ 4,090,345 $ ( 467,180 )

(1) The aggregate cost of real estate for federal income tax purposes was $ 4.1 billion.

22 unchanged sentences

Mortgage Secured Loans:

Multiple ( 21 SNF, 15 ALF, 1 ILF)

Multiple ( 21 SNF, 16 Senior housing)

8.4 % 2029 (3)

$ — $ 260,000 $ 267,950 N/A

North Carolina ( 5 SNF, 3 SNF Campus)

North Carolina ( 7 SNF)

— 174,000 182,562 N/A

West Virginia ( 17 SNF, 1 SNF Campus)

West Virginia ( 18 SNF)

8.5 % 2028 (3)

75,000 73,450 N/A

Georgia ( 4 SNF)

California ( 1 Senior housing)

9.3 % 2028 (3)

— 36,750 37,099 N/A

West Virginia ( 18 SNF)

9.7 % 2028 (3)

29,000 29,239 N/A

Tennessee ( 2 SNF)

1 unchanged sentence

— 26,675 27,174 N/A

California ( 1 SNF, 1 ALF & 1 ILF)

California ( 1 SNF, 2 Senior housing)

9.0 % 2033 (3)

— 25,993 26,105 N/A

Maryland ( 1 SNF)

Washington ( 2 SNF)

8.5 % 2035 (3)

— 25,065 25,200 N/A

United Kingdom ( 1 Senior housing)

8.5 % 2026 (3)

— 20,888 21,728 N/A

Maryland ( 1 SNF)

— 19,190 19,400 N/A

Florida ( 2 SNF)

7 unchanged sentences

— 9,800 10,336 N/A

California ( 3 SNF)

7,301 7,245 N/A

California ( 1 ALF)

California ( 1 Senior housing)

9.9 % 2026 (3)

3 unchanged sentences

3,564 3,593 N/A

Indiana ( 1 ALF)

9.0 % 2025 (3)

— 2,000 2,016 N/A

Florida ( 1 ALF)

Florida ( 1 Senior housing)

9.0 % 2027 (3)

1 unchanged sentence

Mezzanine Loans:

Virginia ( 15 SNF)

West Virginia ( 18 SNF)

11.0 % 2032 (3)

25,000 23,575 N/A

West Virginia ( 17 SNF, 1 SNF Campus)

Maryland ( 2 SNF)

11,511 11,740 N/A

Missouri ( 6 SNF, 2 Campus, 2 ALF)

Missouri ( 8 SNF, 2 Senior housing)

9,800 10,390 N/A

2 unchanged sentences

7,365 7,438 N/A

Maryland ( 1 SNF Campus)

Maryland ( 1 SNF)

12.5 % 2030 (3)

5 unchanged sentences

(4) The secured term loan was structured with an “A” tranche, a “B” tranche, and a “C” tranche, with the “C” tranche being the most subordinate.

The Company’s loan constituted the entirety of the “C” tranche.

The Company’s loans constituted the entirety of the “B” and “C” tranches.

The Company also extended a mezzanine loan to the borrower group.

Accordingly, the amounts of the prior liens at December 31, 2025 are estimated.

(5) The secured term loan was structured with an “A” and a “B” tranche, with the “B” tranche being subordinate to the “A” tranche pursuant to the terms of a written agreement between the lenders.

The Company’s loan constituted the entirety of the “B” tranche.

Accordingly, the amounts of the prior liens at December 31, 2024 are estimated.

(5) The first mortgage loans on these properties are not held by the Company.

Accordingly, the amounts of the prior liens at December 31, 2025 are estimated.

(6) Interest is due monthly, and principal begins amortizing during the term of the loan.

MORTGAGE LOANS ON REAL ESTATE

8 unchanged sentences

Interest income added to principal 647 2,600 388

Total additions 131,860 557,803 54,222

Deductions during period:

1 unchanged sentence

Unrealized gain (loss), net 16,181 9,045 ( 6,485 )

Amortized fees ( 117 ) — —

Total deductions ( 57,837 ) 4,633 ( 32,022 )

Change in balance due to foreign currency translation ( 350 ) — —

Balance at end of period $ 814,677 $ 741,004 $ 178,568

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures