Equity Method Investments |
The following tables present the Company’s investments in unconsolidated ventures as of June 30, 2017 and December 31, 2016 and activity for the three and six months ended June 30, 2017 and 2016 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Properties as of June 30, 2017(1) | Portfolio | | Partner(2) | | Acquisition Date | | Ownership | | Purchase Price(3) | | Equity Investment(4) | | Senior Housing Facilities | | MOB | | SNF | | Hospitals | | Total | Eclipse | | Colony NorthStar/Formation Capital, LLC | | May-2014 | | 5.6 | % | | $ | 1,048,000 |
| | $ | 23,400 |
| | 44 |
| | — |
| | 35 |
| | — |
| | 79 |
| Envoy | | Formation Capital, LLC/Safanad Management Limited | | Sep-2014 | | 11.4 | % | | 145,000 |
| | 5,000 |
| | — |
| | — |
| | 14 |
| | — |
| | 14 |
| Griffin - American | | Colony NorthStar | | Dec-2014 | | 14.3 | % | | 3,238,547 |
| | 200,600 |
| | 90 |
| | 108 |
| | 41 |
| | 14 |
| | 253 |
| Espresso | | Formation Capital, LLC/Safanad Management Limited | | Jul-2015 | | 36.7 | % | | 870,000 |
| | 55,000 |
| | 6 |
| | — |
| | 152 |
| | — |
| | 158 |
| Trilogy | | Griffin-American Healthcare REIT III, Inc./Management Team of Trilogy Investors, LLC | | Dec-2015 | | 29.0 | % | | 1,162,613 |
| | 225,800 |
| | 8 |
| | — |
| | 67 |
| | — |
| | 75 |
| Total | | | | | | | | $ | 6,464,160 |
| | $ | 509,800 |
| | 148 |
| | 108 |
| | 309 |
| | 14 |
| | 579 |
|
_______________________________________ | | (1) | Excludes properties held for sale as of June 30, 2017. |
| | (2) | During January 2017, NorthStar Realty completed its previously announced merger with Colony and NSAM, with Colony NorthStar surviving the mergers. |
| | (3) | Purchase price represent the actual or implied gross purchase price for the joint venture on the acquisition date. Purchase price is not adjusted for subsequent acquisitions or dispositions of interest. |
| | (4) | Represents initial and subsequent contributions to the underlying joint venture through June 30, 2017. In January 2017, the Company funded an additional capital contribution of $5.3 million into the Trilogy joint venture. The additional funding related to certain business initiatives, including the acquisition of additional senior housing and skilled nursing facilities and repayment of certain outstanding obligations. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2017 | | Three Months Ended June 30, 2016 | | Carrying Value | | | | | Depreciation, Amortization Expense & Transaction Costs | | | | | | Depreciation, Amortization Expense & Transaction Costs | | | | | | | Portfolio | | Equity in Earnings (Losses) | | | Cash Distributions | | Equity in Earnings (Losses) | | | Cash Distributions | | June 30, 2017 (Unaudited)(1) | | December 31, 2016(2) | Eclipse | | $ | (558 | ) | | $ | (441 | ) | | $ | 116 |
| | $ | 170 |
| | $ | (447 | ) | | $ | 494 |
| | $ | 15,118 |
| | $ | 15,932 |
| Envoy | | (5 | ) | | — |
| | — |
| | 133 |
| | 179 |
| | — |
| | 6,391 |
| | 6,398 |
| Griffin - American | | (2,417 | ) | | (3,579 | ) | | 4,219 |
| | (3,337 | ) | | (4,837 | ) | | 2,719 |
| | 136,214 |
| | 144,629 |
| Espresso | | (2,402 | ) | | (1,261 | ) | | 1,334 |
| | (1,899 | ) | | (621 | ) | | 1,541 |
| | 23,395 |
| | 29,353 |
| Trilogy | | (1,673 | ) | | (5,590 | ) | | — |
| | (12,499 | ) | | (16,075 | ) | | — |
| | 164,777 |
| | 164,222 |
| Total | | $ | (7,055 | ) | | $ | (10,871 | ) | | $ | 5,669 |
| | $ | (17,432 | ) | | $ | (21,801 | ) | | $ | 4,754 |
| | $ | 345,895 |
| | $ | 360,534 |
|
_______________________________________ | | (1) | Includes $1.3 million, $0.4 million, $13.4 million, $7.6 million and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse, Envoy, Griffin-American, Espresso and Trilogy joint ventures, respectively. |
| | (2) | Includes $1.3 million, $0.4 million, $13.4 million, $7.6 million and $9.3 million of capitalized acquisition costs for the Company’s investments in the Eclipse, Envoy, Griffin-American, Espresso and Trilogy joint ventures, respectively. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2017 | | Six Months Ended June 30, 2016 | | | | | Depreciation, Amortization Expense & Transaction Costs | | | | | | Depreciation, Amortization Expense & Transaction Costs | | | Portfolio | | Equity in Earnings (Losses) | | | Cash Distributions | | Equity in Earnings (Losses) | | | Cash Distributions | Eclipse | | $ | (410 | ) | | $ | (895 | ) | | $ | 404 |
| | $ | 295 |
| | $ | (897 | ) | | $ | 982 |
| Envoy | | 172 |
| | — |
| | 179 |
| | (309 | ) | | 178 |
| | — |
| Griffin - American | | (4,534 | ) | | (7,184 | ) | | 5,697 |
| | (6,215 | ) | | (9,578 | ) | | 5,580 |
| Winterfell(1) | | — |
| | — |
| | — |
| | 1,423 |
| | — |
| | 591 |
| Espresso | | (2,649 | ) | | (2,388 | ) | | 3,307 |
| | (1,385 | ) | | (1,753 | ) | | 3,240 |
| Trilogy | | (5,256 | ) | | (10,690 | ) | | — |
| | (25,278 | ) | | (31,920 | ) | | — |
| Total | | $ | (12,677 | ) | | $ | (21,157 | ) | | $ | 9,587 |
| | $ | (31,469 | ) | | $ | (43,970 | ) | | $ | 10,393 |
|
_______________________________________ | | (1) | In March 2016, the Company acquired NorthStar Realty’s 60.0% interest in the Winterfell JV. The transaction was approved by the Company’s board of directors, including all of its independent directors, and the purchase price was supported by an independent third-party appraisal for the Winterfell portfolio. The Company originally acquired a 40.0% equity interest in the Winterfell JV in May 2015. The Company accordingly now owns 100.0% of the equity in the Winterfell portfolio as of March 1, 2016 and consolidates the portfolio. |
The below table indicates the Company’s investments for which Colony NorthStar is also an equity partner in the joint venture. Each investment was approved by the Company’s board of directors, including all of its independent directors. Refer to Note 4, “Investments in Unconsolidated Ventures” for further discussion of these investments (dollars in thousands): | | | | | | | | | | | | | | | | Portfolio | | Partner(s) | | Acquisition Date | | Ownership | | Purchase Price(1) | | Equity Investment(2) | Eclipse | | Colony NorthStar/Formation Capital, LLC | | May-2014 | | 5.6% | | $ | 59,097 |
| | $ | 23,400 |
| Griffin-American | | Colony NorthStar | | Dec-2014 | | 14.3% | | 463,436 |
| | 200,600 |
|
_______________________________________ | | (1) | Purchase price represents the Company’s proportionate share of the actual or implied gross purchase price for the joint venture on the acquisition date. Purchase price is not adjusted for subsequent acquisitions or dispositions of interest. |
| | (2) | Represents initial and subsequent contributions to the underlying joint venture through June 30, 2017. |
|