Leases (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Future Minimum Lease Payments

Future minimum lease payments for the year ended December 31, for each of the next five years and thereafter is as follows:

(Amounts in 000's)	Future rental payments		Accretion of lease liability ⁽¹⁾			Operating lease obligation
2022	$	6,752	$	(342	)	$	6,410
2023		6,851		(814	)		6,037
2024		6,958		(1,273	)		5,685
2025		7,095		(1,741	)		5,354
2026		7,234		(2,192	)		5,042
Thereafter		5,502		(1,971	)		3,531
Total	$	40,392	$	(8,333	)	$	32,059

⁽¹⁾	Weighted average discount rate 7.98%

Schedule of Future Minimum Lease Receivables

Future minimum lease receivables for the year ended of December 31, for each of the next five years and thereafter is as follows:

	(Amounts in 000's)
2022	$	13,025
2023		14,973
2024		14,785
2025		13,178
2026		11,906
Thereafter		19,065
Total	$	86,932

Schedule of Future Minimum Lease Receivables Leases to Third-Parties

The following is a summary of the Company’s leases to third-parties and which comprise the future minimum lease receivables of the Company. The terms of each lease are structured as “triple-net” leases. Other than the lease for the Powder Springs Facility, each lease contains specific rent escalation amounts ranging from 1.0% to 3.0% annually. Further, each lease has one or more renewal options. For those facilities subleased by the Company, the renewal option in the sublease agreement is dependent on the Company’s renewal of its lease agreement.

		Initial Lease Term
		Commencement	Expiration	2022 Cash
Facility Name	Operator Affiliation ⁽¹⁾	Date	Date	Annual Rent
				(Thousands)
Owned
Eaglewood ALF	Aspire	12/1/2018	11/30/2028	$	630
Eaglewood Care Center	Aspire	12/1/2018	11/30/2028		805
H&C of Greenfield	Aspire	12/1/2018	11/30/2023		336
Southland Healthcare	Beacon Health Management	11/1/2014	10/31/2024		1,009
The Pavilion Care Center	Aspire	12/1/2018	11/30/2028		336
Autumn Breeze	C.R. Management	9/30/2015	9/30/2025		939
Coosa Valley Health Care	C.R. Management	12/1/2014	8/31/2030		1,046
Glenvue H&R	C.R. Management	7/1/2015	6/30/2025		1,382
Meadowood ⁽²⁾	C.R. Management	5/1/2017	3/31/2022		—
Georgetown Health	Symmetry Healthcare	4/1/2015	3/31/2030		358
Mountain Trace Rehab	Vero Health Management	3/1/2019	2/28/2029		515
Sumter Valley Nursing	Symmetry Healthcare	4/1/2015	3/31/2030		662
Subtotal Owned Facilities (12)				$	8,018
Leased
Covington Care	Aspire	12/1/2018	11/30/2028	$	805
Lumber City	Beacon Health Management	11/1/2014	8/31/2027		983
LaGrange	C.R. Management	4/1/2015	8/31/2027		1,209
Thomasville N&R	C.R. Management	7/1/2014	8/31/2027		380
Jeffersonville	Peach Health	6/18/2016	8/31/2027		794
Oceanside	Peach Health	7/13/2016	8/31/2027		540
Savannah Beach	Peach Health	7/13/2016	8/31/2027		296
Powder Springs ⁽³⁾	Empire	1/1/2021	8/1/2027		—
Tara ⁽³⁾⁽⁴⁾	Regional Health Properties				—
Subtotal Leased Facilities (9)				$	5,007
Total (21)				$	13,025

⁽¹⁾	^{Represents the number of facilities which are leased or subleased to separate tenants, which tenants are affiliates of the entity named in the table above.}

⁽²⁾	^{On December 14, 2021, CRM and the ADPH entered into two Consent Agreements (one for the ALF and one for the SCALF) pursuant to which CRM will no longer be permitted to operate or manage the Meadowood}

Facility after April 1, 2022. The Company must either find a replacement tenant, operate the facility, or discharge all the residents on or before June 1, 2022.

⁽³⁾	^{Indicates facilities that were leased to affiliates of Wellington until 12:01 a.m. on January 1, 2021. The base rent will equal 80% of the operators Adjusted EBITDAR.}

⁽⁴⁾

^{Effective January 1, 2021, Regional began operating the Tara Facility and entered into the Vero Management Agreement with Vero Health under which Vero Health provided management consulting services for the Tara Facility. On September 21, 2021, the Company notified Vero Health of Regional’s intention to terminate the Vero Management Agreement, effective October 1, 2021. Regional will continue to operate the Tara Facility and has entered into the Peach Management Agreement with Peach, dated as of September 22, 2021 and effective October 1, 2021, to provide management consulting services for the Tara Facility.}