Item 2. Properties
Item 2. Properties
The following table presents certain additional information about the properties we owned as of December 31, 2023:
Portfolio Number
of Properties Rentable
Square Feet Percent Leased (1)
Weighted Average Remaining Lease Term (2)
Gross Asset Value (3)
(In thousands)
Medical Office and Other Healthcare Related Buildings 156 5,153,419 90.6% 4.7 $ 1,468,401
Seniors Housing — Operating Properties 48 (4) 3,857,652 74.1% (5) N/A 1,133,238
Total Portfolio 204 9,011,071 $ 2,601,639
__________
(1) Inclusive of leases signed but not yet commenced as of December 31, 2023.
(2) Weighted-average remaining lease term in years is calculated based on square feet as of December 31, 2023.
(3) Gross asset value represents total real estate investments, at cost ($2.6 billion total as of December 31, 2023), net of gross market lease intangible liabilities ($23.5 million total as of December 31, 2023). Impairment charges are already reflected within gross asset value.
(4) Includes two parcels of land with a total gross asset value of $3.7 million.
(5) Weighted by unit count as of December 31, 2023. As of December 31, 2023, we had 4,164 rentable units in our SHOP segment.
N/A Not applicable.
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The following table details the geographic distribution, by state, of our portfolio as of December 31, 2023:
State Number of Properties (1)
Annualized Rental Income (2)
Annualized Rental Income % Rentable Square Feet Rentable Square Feet % Rentable Units in SHOP Segment
(In thousands)
Alabama 1 $ 176 0.1 % 5,564 0.1 % —
Arizona 14 10,140 3.2 % 509,806 5.7 % —
Arkansas 3 16,274 5.1 % 248,783 2.8 % 299
California 8 20,645 6.4 % 446,723 5.0 % 247
Colorado 3 1,754 0.5 % 67,016 0.7 % —
Florida 23 63,883 19.9 % 1,099,729 12.2 % 812
Georgia 16 29,596 9.2 % 802,691 8.9 % 624
Idaho 1 3,480 1.1 % 55,846 0.6 % 95
Illinois 23 22,792 7.1 % 879,289 9.8 % 356
Indiana 8 4,672 1.5 % 208,672 2.3 % —
Iowa 12 26,946 8.4 % 505,781 5.6 % 583
Kansas 1 4,695 1.5 % 49,360 0.5 % 71
Louisiana 1 656 0.2 % 17,830 0.2 % —
Maryland 1 1,046 0.3 % 36,260 0.4 % —
Massachusetts 3 846 0.3 % 36,563 0.4 % —
Michigan 11 16,027 5.0 % 420,298 4.7 % 311
Minnesota 1 1,098 0.3 % 36,375 0.4 % —
Mississippi 3 1,124 0.4 % 73,859 0.8 % —
Missouri 2 8,594 2.7 % 96,016 1.1 % 146
Nevada 2 3,279 1.0 % 86,342 1.0 % —
New Jersey 1 734 0.2 % 25,164 0.3 % —
New York 5 2,881 0.9 % 136,982 1.5 % —
North Carolina 3 1,656 0.5 % 90,650 1.0 % —
Ohio 5 7,890 2.5 % 172,085 1.9 % —
Oklahoma 2 1,094 0.3 % 47,407 0.5 % —
Oregon 6 8,856 2.8 % 322,354 3.6 % 252
Pennsylvania 16 33,926 10.6 % 1,413,595 15.7 % 289
South Carolina 2 1,103 0.3 % 52,527 0.6 % —
Tennessee 3 3,445 1.1 % 175,669 1.9 % —
Texas 9 6,629 2.1 % 403,369 4.5 % —
Virginia 1 1,633 0.3 % 62,165 0.7 % —
Washington 1 2,031 0.6 % 52,900 0.6 % —
Wisconsin 13 11,122 3.5 % 373,401 4.1 % 79
Total 204 $ 320,723 100 % 9,011,071 100 % 4,164
__________
(1) Includes two land parcels located in Florida and Iowa.
(2) Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2023, which includes tenant concessions such as free rent, as applicable, as well as annualized gross revenue from our SHOPs based off the fourth quarter of 2023.
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Future Minimum Lease Payments
The following table presents future minimum base rental cash payments due to us (excluding our SHOP segment) over the next ten years and thereafter as of December 31, 2023. The SHOP segment is excluded as the leased units with residents are generally for annual periods or month-to-month. These amounts exclude tenant reimbursements and contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to performance thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.
(In thousands) Future Minimum
Base Rent Payments
2024 $ 109,451
2025 100,230
2026 91,862
2027 72,815
2028 53,918
2029 43,422
2030 38,804
2031 33,371
2032 26,554
2033 15,722
Thereafter 36,460
$ 622,609
Future Lease Expirations Table
The following is a summary of lease expirations for the next ten years at the properties we owned (excluding our SHOP segment) as of December 31, 2023:
Year of Expiration
Number of Leases Expiring
Annualized Rental Income (1)
Annualized Rental Income as a Percentage of the Total Portfolio
Leased Rentable Square Feet
Percent of Portfolio Rentable Square Feet Expiring
(In thousands)
2024 99 $ 8,842 8.0% 393,361 8.4%
2025 75 9,034 8.2% 367,191 7.9%
2026 98 18,659 16.9% 1,042,517 22.3%
2027 103 16,884 15.3% 863,913 18.5%
2028 64 13,349 12.1% 502,452 10.8%
2029 35 5,759 5.2% 240,317 5.1%
2030 28 4,896 4.4% 198,068 4.2%
2031 16 4,820 4.4% 184,357 3.9%
2032 30 13,336 12.0% 449,248 9.6%
2033 13 3,377 3.1% 128,488 2.8%
Total 561 $ 98,956 89.6% 4,369,912 93.5%
__________
(1) Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2023, which includes tenant concessions such as free rent, as applicable.
Tenant Concentration
As of December 31, 2023, we did not have any tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of total annualized rental income on a straight-line basis for our portfolio.
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Significant Portfolio Properties
As of December 31, 2023, the rentable square feet or annualized rental income on a straight-line basis of one property represented 5% or more of our total portfolio’s rentable square feet or annualized rental income on a straight-line basis:
Wellington at Hershey’s Mill - West Chester, PA
In December 2014, we purchased Wellington at Hershey’s Mill, a seniors housing property located in West Chester, Pennsylvania. Wellington at Hershey’s Mill, which is leased to our TRS and operated and managed on our behalf by a third-party operator in our SHOP segment, contains 491,710 rentable square feet and consists of 289 rentable units (193 units dedicated to independent living patients, 64 units dedicated to assisted living patients and 32 units dedicated to memory care patients). As of December 31, 2023, this property represented 5.5% of our total rentable square feet and 5.4% of our total annualized rental income on a straight-line basis.
Property Financings
See Note 4 — Mortgage Notes Payable, Net and Note 5 — Credit Facilities to our consolidated financial statements in this Annual Report on Form 10-K for property financings as of December 31, 2023 and 2022.
Item 3. Legal Proceedings.
We are not a party to, and none of our properties are subject to, any material pending legal proceedings.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II