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.
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