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Investments in Unconsolidated Ventures
3 Months Ended
Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Ventures
Investments in Unconsolidated Ventures
All investments in unconsolidated ventures are accounted for under the equity method. The following tables present the Company’s investments in unconsolidated ventures as of March 31, 2019 and December 31, 2018 and activity for the three months ended March 31, 2019 and 2018 (dollars in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
Properties as of March 31, 2019
Portfolio
 
Partner
 
Acquisition Date
 
Ownership
 
Purchase Price(1)
 
Equity Investment(2)
 
Senior Housing Facilities
 
MOB
 
SNF
 
Hospitals
 
Total
Eclipse
 
Colony Capital/Formation Capital, LLC
 
May-2014
 
5.6
%
 
$
1,048,000

 
$
23,400

 
44

 

 
32

 

 
76

Griffin-American
 
Colony Capital
 
Dec-2014
 
14.3
%
 
3,238,547

 
206,143

 
92

 
108

 
41

 
14

 
255

Espresso
 
Formation Capital, LLC/Safanad Management Limited
 
Jul-2015
 
36.7
%
 
870,000

 
55,146

 
6

 

 
150

 

 
156

Trilogy
 
Griffin-American Healthcare REIT III & IV /Management Team of Trilogy Investors, LLC
 
Dec-2015
 
23.2
%
 
1,162,613

 
189,032

 
9

 

 
68

 

 
77

Subtotal
 
 
 
 
 
 
 
$
6,319,160

 
$
473,721

 
151

 
108

 
291

 
14

 
564

Operator Platform(3)
 
Jul-2017
 
20.0
%
 
2

 
2

 

 

 

 

 

Total
 
 
 
 
 
 
 
$
6,319,162

 
$
473,723

 
151

 
108

 
291

 
14

 
564

_______________________________________
(1)
Purchase price represents 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 March 31, 2019. During the three months ended March 31, 2019, the Company funded an additional capital contribution of $2.4 million into the Trilogy joint venture. The additional funding related to certain business initiatives, including the development of additional senior housing and SNFs. In October 2018, the Company sold 20.0% of our ownership interest in the Trilogy joint venture, which reduced its ownership interest in the joint venture from approximately 29% to 23%.
(3)
Represents the Company’s investment in Solstice Senior Living, LLC (“Solstice”), the manager of the Winterfell portfolio. Solstice is a joint venture between affiliates of Integral Senior Living, LLC (“ISL”), a leading management company of ILF, ALF and MCF founded in 2000, which owns 80.0%, and the Company, which owns 20.0%.
 
 
Three Months Ended March 31, 2019
 
Three Months Ended March 31, 2018
 
Carrying Value(2)
 
 
 
 
Select Revenues and Expenses, net(1)
 
 
 
 
 
Select Revenues and Expenses, net(1)
 
 
 
 
 
 
Portfolio
 
Equity in Earnings (Losses)
 
 
Cash Distributions
 
Equity in Earnings (Losses)
 
 
Cash Distributions
 
March 31, 2019 (Unaudited)
 
December 31, 2018
Eclipse
 
$
(100
)
 
$
(530
)
 
$
79

 
$
5

 
$
(400
)
 
$
254

 
$
11,586

 
$
11,765

Envoy(3)
 
96

 
(810
)
 
4,301

 
(2
)
 
(1
)
 

 
512

 
4,717

Griffin-American
 
(595
)
 
(3,583
)
 
1,116

 
(44
)
 
(3,686
)
 
716

 
112,472

 
113,982

Espresso(4)
 
(596
)
 
(1,833
)
 

 
(8,904
)
 
(9,892
)
 

 

 

Trilogy(5)
 
995

 
(3,328
)
 
1,451

 
258

 
(3,806
)
 
1,915

 
135,708

 
133,764

Subtotal
 
$
(200
)
 
$
(10,084
)
 
$
6,947

 
$
(8,687
)
 
$
(17,785
)
 
$
2,885

 
$
260,278

 
$
264,228

Operator Platform(6)
 
(24
)
 

 

 
61

 

 

 
67

 
91

Total
 
$
(224
)
 
$
(10,084
)
 
$
6,947

 
$
(8,626
)
 
$
(17,785
)
 
$
2,885

 
$
260,345

 
$
264,319


_______________________________________
(1)
Represents the net amount of the Company’s proportionate share of the following revenues and expenses: straight-line rental income (expense), (above)/below market lease and in-place lease amortization, (above)/below market debt and deferred financing costs amortization, depreciation and amortization expense, acquisition fees and transaction costs, loan loss reserves, liability extinguishment gains, impairment, as well as unrealized and realized gain (loss) from sales of real estate and investments.
(2)
Includes $1.3 million, $13.4 million, $7.6 million, and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse, Griffin-American, Espresso and Trilogy joint ventures, respectively.
(3)
In March 2019, the Envoy joint venture completed the sale of its remaining 11 properties, for a sales price of $118.0 million.
(4)
As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its Espresso unconsolidated investment was reduced to zero as of March 31, 2019. The Company has recorded the excess equity in losses related to its unconsolidated venture as a reduction to the carrying value of its mezzanine loan, which was originated to a subsidiary of the Espresso joint venture.
(5)
In October 2018, the Company sold 20.0% of its ownership interest in the Trilogy joint venture, which generated gross proceeds of $48.0 million and reduced the Company’s ownership interest in the joint venture from approximately 29% to 23%.
(6)
Represents the Company’s investment in Solstice.