5 unchanged sentences
Operational Risks
−Removed: The Company's revenues depend on the ability of its tenants under its leases to generate sufficient income from their operations to make rental payments to the Company.
−Removed: The Company’s revenues are subject to the financial strength of its tenants and associated health systems.
−Removed: The Company has no operational control over the business of these tenants and associated health systems that face a wide range of economic, competitive, government reimbursement and regulatory pressures and constraints, including the loss of licensure or certification.
−Removed: Any slowdown in the economy, decline in the availability of financing from the capital markets, or changes in healthcare regulations may adversely affect the businesses of the Company’s tenants to varying degrees.
−Removed: Such conditions may further impact such tenants’ abilities to meet their obligations to the Company and, in certain cases, could lead to restructurings, disruptions, or bankruptcies of such tenants.
−Removed: The Company leases to government tenants from time to time that may be subject to annual budget appropriations.
−Removed: If a government tenant fails to receive its annual budget appropriation, it might not be able to make its lease payments to the Company.
−Removed: In addition, defaults under leases with federal government tenants are governed by federal statute and not by state eviction or rent deficiency laws.
−Removed: The conditions described above could adversely affect the Company’s revenues and could increase allowances for losses and result in impairment charges, which could decrease net income attributable to common stockholders and
−Removed: equity and reduce cash flows from operations.
−Removed: For example, Steward leases approximately 580,000 square feet of space from the Company, accounting for approximately 1.6% of the Company’s total in-place annualized base rent.
−Removed: On May 6, 2024, Steward announced that it had filed petitions for relief under Chapter 11 of the U.S.
+Added: The Company's results of operations have been and will continue to be impacted by the Steward Health bankruptcy.
+Added: As previously disclosed, on May 6, 2024, Steward Health announced that it had filed petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of Texas.
−Removed: The bankruptcy filing by Steward has delayed the Company’s efforts to collect past due balances under its leases with Steward and may ultimately preclude collection of these amounts.
−Removed: Further, two of the leases have been rejected in bankruptcy and additional leases could be rejected.
−Removed: Steward owes the Company approximately $3.0 million in prepetition rent.
−Removed: There can be no assurance that Steward will meet its financial obligations to the Company or that the Company will be able to timely re-let spaces for which leases have been rejected.
+Added: Prior to the bankruptcy filing, Steward leased approximately 593,000 square feet of space from the Company, accounting for approximately 2.0% of the Company’s rental revenue.
+Added: Leases for six buildings in Massachusetts totaling approximately 244,000 square feet were assumed in connection with the sale of Steward’s Massachusetts hospitals on or about September 30, 2024.
+Added: In October 2024, the Company received $2.2 million for prior rent owed under these assumed leases.
+Added: On October 25, 2024, leases for approximately 232,000 square feet in buildings in Florida and Massachusetts were rejected by Steward effective as of October 31, 2024, bringing the total leases rejected to 266,000 square feet.
+Added: The total base rent associated with the leases rejected is approximately $0.6 million per month and the Company expects to cover operating expenses of an additional $0.2 million per month.
+Added: There can be no assurances that the Company will be able to re-let this leased space.
+Added: The remaining Steward leases for approximately 83,000 square feet are subject to continuing discussions with Steward and its hospital purchaser.
+Added: While the Company remains actively engaged in these discussions, significant uncertainty remains around whether these leases will be assumed or rejected.
+Added: The Company will pursue claims for outstanding rent of $2.8 million against Steward in the bankruptcy court.
+Added: However, there can be no assurance that the Company will recover unpaid rent from Steward.
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.