Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q4 2024 to $30.9 million in Q4 2025, representing a 5.6% annual growth [11] - FFO in Q4 2025 was $13.3 million, a 4.6% increase year-over-year compared to $12.7 million in Q4 2024 [13] - AFFO totaled $14.9 million in Q4 2025, a 2.1% increase year-over-year compared to $14.6 million in Q4 2024 [14] - Interest expense decreased slightly to $7 million in Q4 2025, primarily due to recent FOMC interest rate cuts [12] Business Line Data and Key Metrics Changes - Occupancy increased from 90.1% to 90.6% during the quarter [6] - Weighted average lease term increased from 6.7 to 7 years [6] - The company sold an inpatient rehab facility at a 7.9% cap rate, resulting in a gain of approximately $11.5 million [7] Market Data and Key Metrics Changes - The company acquired three properties totaling 113,000 sq ft for an aggregate purchase price of $64.5 million, which were 100% leased [8] - The company signed definitive purchase and sale agreements for five properties with an expected investment of $122.5 million [9] Company Strategy and Development Direction - The company aims to maintain modest leverage levels while evaluating the best uses of capital [9] - The company is focused on capital recycling and selective acquisitions, with plans to use 1031 like-kind exchanges for reinvestment [9][23] - The company anticipates significant growth from redevelopment projects expected to come online in mid-2026 and late 2026 [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the transaction with the geriatric behavioral hospital operator is expected to occur all at once, with no plans for a staged closing [20] - Management expressed confidence in the leasing activity and expects leased occupancy to remain stable in the low nineties for the next couple of quarters, with potential growth in the second half of the year [32] - Management indicated that there are still great opportunities in the market, with a focus on maintaining relationships with brokers to identify potential acquisitions [34] Other Important Information - The company declared a dividend of $0.4775 per common share for Q4 2025, raising it to an annualized dividend of $1.91 per share [10] - The company did not issue any shares under its ATM last quarter, anticipating sufficient capital from asset sales to fund near-term acquisitions [9] Q&A Session Summary Question: Update on the Geriatric Behavioral Hospital operator transaction - Management indicated that the transaction is expected to happen all at once, with significant progress in the first quarter [20] Question: Balancing transactions and potential leverage increase - Management aims to sequence dispositions and acquisitions to avoid adding leverage, confident in capital recycling efforts [23] Question: Changes in cap rates for acquisitions or dispositions - Management noted a high level of demand for assets and expects similar pricing on other dispositions, with opportunities in the 9%-10% cap rate range [26] Question: Future occupancy expectations - Management expects occupancy to remain stable in the low nineties for the next couple of quarters, with potential growth in the second half of the year [32] Question: Investment pipeline and opportunities - Management confirmed that opportunities still exist, with a focus on supporting clients and potential acquisitions when stock prices allow [34] Question: Status of the dialysis term sheet pipeline - Management stated that the relationship is on the back burner, with no current focus on executing transactions under that deal [36]

Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q4 2024 to $30.9 million in Q4 2025, representing a 5.6% annual growth [11] - FFO in Q4 2025 was $13.3 million, a 4.6% increase year-over-year compared to $12.7 million in Q4 2024 [13] - AFFO totaled $14.9 million in Q4 2025, a 2.1% increase year-over-year from $14.6 million in Q4 2024 [14] - The company declared a dividend of $0.4775 per common share for Q4 2025, raising the annualized dividend to $1.91 per share [10] Business Line Data and Key Metrics Changes - Occupancy increased from 90.1% to 90.6% during the quarter [6] - The weighted average lease term increased from 6.7 years to 7 years [6] - The company sold an inpatient rehab facility at a 7.9% cap rate, resulting in a gain of approximately $11.5 million [7] Market Data and Key Metrics Changes - The company acquired three properties totaling 113,000 sq ft for $64.5 million, which were 100% leased [8] - The expected return on new investments ranges from 9.1% to 9.75% [9] - The indicative cap rate for the sale of the inpatient rehab facility was 7.9%, with expectations for similar pricing on other dispositions [26] Company Strategy and Development Direction - The company is focused on capital recycling and selective acquisitions, maintaining modest leverage levels [9][23] - There are ongoing redevelopment projects expected to come online in mid-2026 and late 2026, which are anticipated to provide growth [27] - The company aims to execute transactions without adding meaningful leverage to the balance sheet [24] Management's Comments on Operating Environment and Future Outlook - Management noted that the transaction with the behavioral hospital operator is progressing, with expectations for a simultaneous closing of all six hospitals [20] - Leasing activity is strong, and management expects occupancy to remain stable in the low nineties for the next couple of quarters, with potential growth in the second half of the year [32] - The company sees a high level of demand for its assets and is optimistic about future acquisition opportunities [26][34] Other Important Information - The company has signed definitive purchase and sale agreements for five properties expected to be acquired after completion and occupancy [9] - The company did not issue any shares under its ATM last quarter, indicating a focus on using capital from asset sales for acquisitions [9] Q&A Session Summary Question: Update on the JRF Behavioral Hospital operator transaction - Management indicated that the transaction is expected to occur all at once, with no plans for a staged closing [20] Question: Balancing transactions and potential leverage increases - Management emphasized the goal of sequencing dispositions and acquisitions to maintain leverage levels [23] Question: Changes in cap rates for acquisitions or dispositions - Management noted a high demand for assets and expected similar pricing on other dispositions [26] Question: Future occupancy expectations - Management anticipates occupancy to remain stable in the low nineties for the next couple of quarters, with potential increases in the second half of the year [32] Question: Investment pipeline and opportunities - Management confirmed that opportunities still exist, and they are in touch with brokers to identify potential acquisitions [34] Question: Status of the dialysis term sheet pipeline - Management stated that the relationship is on the back burner, with no immediate focus on executing transactions [36]

Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q4 2024 to $30.9 million in Q4 2025, representing a 5.6% annual growth [11] - FFO in Q4 2025 was $13.3 million, a 4.6% increase year-over-year compared to $12.7 million in Q4 2024 [13] - AFFO totaled $14.9 million in Q4 2025, a 2.1% increase year-over-year from $14.6 million in Q4 2024 [14] - Interest expense decreased slightly to $7 million in Q4 2025, primarily due to recent FOMC interest rate cuts [12] Business Line Data and Key Metrics Changes - Occupancy increased from 90.1% to 90.6% during the quarter, with a weighted average lease term rising from 6.7 to 7 years [6] - The company sold an inpatient rehab facility at a 7.9% cap rate, resulting in a gain of approximately $11.5 million [7] - Acquired three properties totaling 113,000 sq ft for $64.5 million, all 100% leased with anticipated annual returns of 9.3%-9.5% [8] Market Data and Key Metrics Changes - The company received a 7.9% cap rate on the sale of the inpatient rehab facility and expects similar pricing on other dispositions [27] - Opportunities on the buy side are seen in the 9%-10% cap rate range [27] Company Strategy and Development Direction - The company is focused on capital recycling and selective acquisitions, with plans to maintain modest leverage levels [9] - Future acquisitions are expected to be funded through selected asset sales and revolver capacity [9] - The company anticipates significant growth from redevelopment projects expected to come online in mid-2026 and late 2026 [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the transaction with the behavioral hospital operator is expected to occur all at once, with no plans for a staged closing [20] - The company expects leased occupancy to remain stable in the low nineties for the next couple of quarters, with potential growth in the second half of the year [33] - Management remains optimistic about the investment pipeline, indicating that opportunities still exist despite recent challenges [36] Other Important Information - The company declared a dividend of $0.4775 per common share for Q4 2025, marking a continuous increase since the IPO [10] - The company has signed definitive purchase and sale agreements for five properties expected to close between 2026 and 2027 [9] Q&A Session Summary Question: Update on the JRF Behavioral Hospital operator transaction - Management indicated that the transaction is expected to happen all at once, with significant progress anticipated in the first quarter [20] Question: Balancing transactions and potential increase in debt levels - Management aims to sequence dispositions and acquisitions effectively, maintaining current leverage levels without adding more [22][24] Question: Changes in cap rates for acquisitions or dispositions - Management noted a high demand for assets and expects similar cap rates for future dispositions, with opportunities in the 9%-10% range for acquisitions [27] Question: Expectations for occupancy rates - Management expects occupancy to remain stable in the low nineties for the next couple of quarters, with potential increases in the second half of the year [33] Question: Investment pipeline and opportunities - Management confirmed that opportunities still exist in the market, with a focus on both client business and brokered deals [36]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $29.1 million, but excluding a $1.7 million reversal of interest receivable, total revenues would have been approximately $30.7 million, representing a 2.2% growth quarter over quarter compared to $30.1 million in Q1 2025 [14][15] - Funds from operations (FFO) on a diluted common share basis was $0.23, reduced by $0.28 due to one-time items, while adjusted funds from operations (AFFO) totaled $13.6 million, or $0.50 per diluted common share, also reduced by $0.06 from one-time items [15] Business Line Data and Key Metrics Changes - The occupancy rate slightly decreased from 90.9% to 90.7% during the quarter, although there was good leasing activity in the portfolio [8] - The company received $260,000 from the geriatric behavioral hospital tenant during the quarter, compared to $165,000 in the prior quarter [8] Market Data and Key Metrics Changes - The company acquired an inpatient rehabilitation facility for $26.5 million with an anticipated annual return of approximately 9.4% [10] - Six properties are under definitive purchase and sale agreements for an aggregate expected investment of $146 million, with expected returns ranging from 9.1% to 9.75% [10] Company Strategy and Development Direction - The company is focused on capital recycling opportunities to fund near-term acquisitions without over-leveraging the balance sheet [11][50] - The management is optimistic about the acquisition pipeline and is committed to closing these transactions while maintaining modest leverage levels [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing negotiations with the buyer of the geriatric behavioral hospital tenant, highlighting the buyer's experience and resources [21][44] - The company anticipates being able to increase occupancy by 100 basis points or more into 2026, driven by a focus on improving core portfolio performance [53] Other Important Information - The company declared a dividend of $47.25 per common share for Q2 2025, equating to an annualized dividend of $1.89 per share [12] - The company recorded a $1.7 million reversal of interest receivables and an $8.7 million credit loss reserve related to the geriatric behavioral hospital tenant [13] Q&A Session Summary Question: Was the recent acquisition part of the 100 pipeline? - Yes, it accounted for the reduction from seven assets to six [18] Question: How will the remaining 25% acquisition be funded? - The company is focused on capital recycling rather than relying solely on the revolver [19][20] Question: Are there plans for other options with the geriatric facilities? - The company is committed to ensuring the transaction closes and has other interested bidders if needed [21][23] Question: Will there be significant capital needed for deferred maintenance? - Any required work on the buildings is expected to be relatively minor [26] Question: What is the expected run rate for G&A expenses? - The adjusted G&A expense, excluding one-time charges, was $4.7 million, which may serve as a good run rate [27] Question: What is the leverage metric being monitored? - The company is comfortable with current leverage levels and plans to maintain them while managing acquisitions [31] Question: How are the remaining notes receivable performing? - The two remaining notes are in good standing, and the watch list remains consistent with no new top tenants added [38][39] Question: What is the status of the new operator for the geriatric facilities? - The operator has significant experience and resources, and lease terms are still under negotiation [44][46] Question: What is the expected cap rate for dispositions compared to acquisition yields? - Expected cap rates for dispositions are in the 7.5% to 8% range [51] Question: What is the expectation for core occupancy in the coming quarters? - The company aims to increase occupancy by 100 basis points or more into 2026 [53]