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Borrowings
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Borrowings
Borrowings
The following table presents the Company’s borrowings as of March 31, 2019 and December 31, 2018 (dollars in thousands):
 
 
 
 
 
 
 
March 31, 2019 (Unaudited)
 
December 31, 2018
 
Recourse vs. Non-Recourse
 
Final
Maturity
 
Contractual
Interest Rate(1)
 
Principal
Amount(2)
 
Carrying
Value(2)
 
Principal
Amount
(2)
 
Carrying
Value
(2)
Mortgage notes payable, net
 
 
 
 
 
 
 
 
 
 
 
 
 
Peregrine Portfolio(3)
 
 
 
 
 
 
 
 
 
 
 
 
 
Various locations
Non-recourse
 
Dec-19
 
LIBOR + 3.50%
 
$
16,435

 
$
16,196

 
$
16,545

 
$
16,277

Watermark Aqua Portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
Denver, CO
Non-recourse
 
Feb-21
 
LIBOR + 2.92%
 
20,786

 
20,705

 
20,866

 
20,774

Frisco, TX
Non-recourse
 
Mar-21
 
LIBOR + 3.04%
 
19,387

 
19,314

 
19,460

 
19,377

Milford, OH
Non-recourse
 
Sep-26
 
LIBOR + 2.68%
 
18,760

 
18,305

 
18,760

 
18,288

Rochester Portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
Rochester, NY
Non-recourse
 
Feb-25
 
4.25%
 
20,696

 
20,583

 
20,849

 
20,734

Rochester, NY(4)
Non-recourse
 
Aug-27
 
LIBOR + 2.34%
 
101,224

 
100,187

 
101,224

 
100,162

Arbors Portfolio(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
Various locations
Non-recourse
 
Feb-25
 
3.99%
 
90,314

 
89,131

 
90,751

 
89,508

Watermark Fountains Portfolio(6)
 
 
 
 
 
 
 
 
 
 
 
 
Various locations
Non-recourse
 
Jun-22
 
3.92%
 
397,500

 
395,141

 
399,023

 
396,421

Various locations
Non-recourse
 
Jun-22
 
5.56%
 
74,918

 
74,301

 
75,401

 
74,776

Winterfell Portfolio(7)
 
 
 
 
 
 
 
 
 
 
 
 
 
Various locations
Non-recourse
 
Jun-25
 
4.17%
 
640,173

 
620,294

 
642,954

 
622,329

Avamere Portfolio(8)
 
 
 
 
 
 
 
 
 
 
 
 
 
Various locations
Non-recourse
 
Feb-27
 
4.66%
 
72,271

 
71,672

 
72,466

 
71,848

Subtotal mortgage notes payable, net
 
 
 
 
 
1,472,464


1,445,829


1,478,299


1,450,494

Other notes payable
 
 
 
 
 
 
 
 
 
 
 
 
 
Oak Cottage
 
 
 
 
 
 
 
 
 
 
 
 
 
Santa Barbara, CA
Non-recourse
 
Feb-22
 
6.00%
 
3,693

 
3,693

 
3,500

 
3,500

Rochester Portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
Rochester, NY
Non-recourse
 
Aug-19
 
6.00%
 
12,355

 
12,355

 
12,355

 
12,355

Subtotal other notes payable, net
 
 
 
 
 
16,048

 
16,048

 
15,855

 
15,855

Total mortgage and other notes payable, net
 
 
 
 
 
$
1,488,512

 
$
1,461,877

 
$
1,494,154

 
$
1,466,349

_______________________________________
(1)
Floating rate borrowings are comprised of $160.2 million principal amount at one-month London Interbank Offered Rate (“LIBOR”) and $16.4 million principal amount at three-month LIBOR.
(2)
The difference between principal amount and carrying value of mortgage notes payable is attributable to deferred financing costs, net for all borrowings other than the Winterfell portfolio which is attributable to below market debt intangibles.
(3)
Mortgage note arrangement is secured and collateralized by three healthcare real estate properties.
(4)
Comprised of seven individual mortgage notes payable secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default.
(5)
Comprised of four individual mortgage notes payable secured by four healthcare real estate properties, cross-collateralized and subject to cross-default.
(6)
Includes $397.5 million principal amount of fixed rate borrowings, secured by 14 healthcare real estate properties, cross-collateralized and subject to cross-default as well as a supplemental financing totaling $74.9 million of principal, secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default.
(7)
Comprised of 32 individual mortgage notes payable secured by 32 healthcare real estate properties, cross-collateralized and subject to cross-default.
(8)
Comprised of five individual mortgage notes payable secured by five healthcare real estate properties, cross-collateralized and subject to cross-default.
The following table presents scheduled principal payments on borrowings based on final maturity as of March 31, 2019 (dollars in thousands):
   April 1 to December 31, 2019
 
$
46,186

   Years Ending December 31:
 
 
2020
 
24,296

2021
 
64,010

2022
 
465,140

2023
 
18,820

Thereafter
 
870,060

Total
 
$
1,488,512


During the three months ended March 31, 2019, an operator for the Company’s Peregrine portfolio failed to remit rental payments in a timely manner, which resulted in a cross-default under the mortgage note agreement as of March 31, 2019.
Colony Capital Line of Credit
In October 2017, the Company obtained a revolving line of credit from an affiliate of Colony Capital, the Sponsor, for up to $15.0 million at an interest rate of 3.5% plus LIBOR (the “Sponsor Line”). The Sponsor Line had an initial one year term, with an extension option of six months. In November 2017, the borrowing capacity under the Sponsor Line was increased to $35.0 million. During 2017, the Company had drawn and fully repaid $25.0 million under the Sponsor Line. In March 2018, the Sponsor Line maturity was extended through December 2020. The Company did not utilize the Sponsor Line during the three months ended March 31, 2019.
Corporate Credit Facility
In December 2017, the Company executed a corporate credit facility with Key Bank (the “Corporate Facility”), for up to $25.0 million. The Corporate Facility has a three year term at interest rates ranging between 2.5% and 3.5% plus LIBOR and has not been utilized. As of March 31, 2019, the Company did not have the ability to draw upon the Corporate Facility as a result of not achieving certain continuing financial covenant conditions. In April 2019, the Company terminated the Corporate Facility.