x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2018 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Maryland | 46-1749436 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
18191 Von Karman Avenue, Suite 300, Irvine, California | 92612 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ¨ | |
Non-accelerated filer | x | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
Page | |
September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Real estate investments, net | $ | 2,210,766,000 | $ | 2,163,258,000 | |||
Real estate notes receivable and debt security investment, net | 99,813,000 | 97,988,000 | |||||
Cash and cash equivalents | 34,925,000 | 33,656,000 | |||||
Accounts and other receivables, net | 121,181,000 | 117,188,000 | |||||
Restricted cash | 36,369,000 | 30,487,000 | |||||
Real estate deposits | 2,904,000 | 3,261,000 | |||||
Identified intangible assets, net | 180,317,000 | 180,308,000 | |||||
Goodwill | 75,309,000 | 75,309,000 | |||||
Other assets, net | 110,970,000 | 99,020,000 | |||||
Total assets | $ | 2,872,554,000 | $ | 2,800,475,000 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Liabilities: | |||||||
Mortgage loans payable, net(1) | $ | 686,954,000 | $ | 613,558,000 | |||
Lines of credit and term loans(1) | 698,073,000 | 624,125,000 | |||||
Accounts payable and accrued liabilities(1) | 136,821,000 | 124,503,000 | |||||
Accounts payable due to affiliates(1) | 1,994,000 | 2,057,000 | |||||
Identified intangible liabilities, net | 1,192,000 | 1,568,000 | |||||
Capital lease obligations(1) | 16,057,000 | 16,193,000 | |||||
Security deposits, prepaid rent and other liabilities(1) | 37,597,000 | 39,461,000 | |||||
Total liabilities | 1,578,688,000 | 1,421,465,000 | |||||
Commitments and contingencies (Note 11) | |||||||
Redeemable noncontrolling interests (Note 12) | 33,397,000 | 32,435,000 | |||||
Equity: | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding | — | — | |||||
Common stock, $0.01 par value per share; 1,000,000,000 shares authorized; 198,503,045 and 199,343,234 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 1,985,000 | 1,993,000 | |||||
Additional paid-in capital | 1,778,084,000 | 1,785,872,000 | |||||
Accumulated deficit | (676,166,000 | ) | (598,044,000 | ) | |||
Accumulated other comprehensive loss | (2,345,000 | ) | (1,971,000 | ) | |||
Total stockholders’ equity | 1,101,558,000 | 1,187,850,000 | |||||
Noncontrolling interests (Note 13) | 158,911,000 | 158,725,000 | |||||
Total equity | 1,260,469,000 | 1,346,575,000 | |||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 2,872,554,000 | $ | 2,800,475,000 |
(1) | Such liabilities of Griffin-American Healthcare REIT III, Inc. as of September 30, 2018 and December 31, 2017 represented liabilities of Griffin-American Healthcare REIT III Holdings, LP or its consolidated subsidiaries. Griffin-American Healthcare REIT III Holdings, LP is a variable interest entity and a consolidated subsidiary of Griffin-American Healthcare REIT III, Inc. The creditors of Griffin-American Healthcare REIT III Holdings, LP or its consolidated subsidiaries do not have recourse against Griffin-American Healthcare REIT III, Inc., except for the 2016 Corporate Line of Credit, as defined in Note 8, held by Griffin-American Healthcare REIT III Holdings, LP in the amount of $523,500,000 and $444,000,000 as of September 30, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT III, Inc. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Resident fees and services | $ | 251,884,000 | $ | 230,768,000 | $ | 744,859,000 | $ | 682,300,000 | |||||||
Real estate revenue | 32,295,000 | 31,980,000 | 97,475,000 | 95,422,000 | |||||||||||
Total revenues | 284,179,000 | 262,748,000 | 842,334,000 | 777,722,000 | |||||||||||
Expenses: | |||||||||||||||
Property operating expenses | 223,665,000 | 199,047,000 | 659,295,000 | 596,099,000 | |||||||||||
Rental expenses | 8,577,000 | 8,299,000 | 26,264,000 | 24,925,000 | |||||||||||
General and administrative | 6,900,000 | 9,270,000 | 19,910,000 | 24,642,000 | |||||||||||
Acquisition related expenses | (1,102,000 | ) | 71,000 | (1,657,000 | ) | 532,000 | |||||||||
Depreciation and amortization | 23,816,000 | 27,579,000 | 70,190,000 | 88,442,000 | |||||||||||
Total expenses | 261,856,000 | 244,266,000 | 774,002,000 | 734,640,000 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense: | |||||||||||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (16,538,000 | ) | (14,773,000 | ) | (48,369,000 | ) | (45,356,000 | ) | |||||||
(Loss) gain in fair value of derivative financial instruments | (750,000 | ) | (59,000 | ) | (1,127,000 | ) | 44,000 | ||||||||
(Loss) gain on dispositions of real estate investments | — | (9,000 | ) | — | 3,370,000 | ||||||||||
Impairment of real estate investments | — | — | (2,542,000 | ) | (4,883,000 | ) | |||||||||
Loss from unconsolidated entity | (1,137,000 | ) | (1,494,000 | ) | (3,672,000 | ) | (3,668,000 | ) | |||||||
Foreign currency (loss) gain | (619,000 | ) | 1,384,000 | (1,652,000 | ) | 3,697,000 | |||||||||
Other income | 501,000 | 210,000 | 1,020,000 | 673,000 | |||||||||||
Income (loss) before income taxes | 3,780,000 | 3,741,000 | 11,990,000 | (3,041,000 | ) | ||||||||||
Income tax benefit | 44,000 | 720,000 | 941,000 | 1,498,000 | |||||||||||
Net income (loss) | 3,824,000 | 4,461,000 | 12,931,000 | (1,543,000 | ) | ||||||||||
Less: net (income) loss attributable to noncontrolling interests | (212,000 | ) | 176,000 | (1,224,000 | ) | 6,051,000 | |||||||||
Net income attributable to controlling interest | $ | 3,612,000 | $ | 4,637,000 | $ | 11,707,000 | $ | 4,508,000 | |||||||
Net income per common share attributable to controlling interest — basic and diluted | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.02 | |||||||
Weighted average number of common shares outstanding — basic and diluted | 199,818,444 | 198,733,528 | 200,120,637 | 197,832,280 | |||||||||||
Distributions declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.45 | |||||||
Net income (loss) | $ | 3,824,000 | $ | 4,461,000 | $ | 12,931,000 | $ | (1,543,000 | ) | ||||||
Other comprehensive (loss) income: | |||||||||||||||
Foreign currency translation adjustments | (136,000 | ) | 355,000 | (374,000 | ) | 977,000 | |||||||||
Total other comprehensive (loss) income | (136,000 | ) | 355,000 | (374,000 | ) | 977,000 | |||||||||
Comprehensive income (loss) | 3,688,000 | 4,816,000 | 12,557,000 | (566,000 | ) | ||||||||||
Less: comprehensive (income) loss attributable to noncontrolling interests | (212,000 | ) | 176,000 | (1,224,000 | ) | 6,051,000 | |||||||||
Comprehensive income attributable to controlling interest | $ | 3,476,000 | $ | 4,992,000 | $ | 11,333,000 | $ | 5,485,000 |
Stockholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
BALANCE — December 31, 2017 | 199,343,234 | $ | 1,993,000 | $ | 1,785,872,000 | $ | (598,044,000 | ) | $ | (1,971,000 | ) | $ | 1,187,850,000 | $ | 158,725,000 | $ | 1,346,575,000 | ||||||||||||||
Offering costs — common stock | — | — | (6,000 | ) | — | — | (6,000 | ) | — | (6,000 | ) | ||||||||||||||||||||
Issuance of vested and nonvested restricted common stock | 22,500 | — | 41,000 | — | — | 41,000 | — | 41,000 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | 4,902,237 | 49,000 | 45,395,000 | — | — | 45,444,000 | — | 45,444,000 | |||||||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 130,000 | — | — | 130,000 | — | 130,000 | |||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 585,000 | 585,000 | |||||||||||||||||||||||
Repurchase of common stock | (5,764,926 | ) | (57,000 | ) | (53,042,000 | ) | — | — | (53,099,000 | ) | — | (53,099,000 | ) | ||||||||||||||||||
Contribution from noncontrolling interest | — | — | — | — | — | — | 4,470,000 | 4,470,000 | |||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (5,246,000 | ) | (5,246,000 | ) | |||||||||||||||||||||
Reclassification of noncontrolling interests to mezzanine equity | — | — | — | — | — | — | (585,000 | ) | (585,000 | ) | |||||||||||||||||||||
Fair value adjustment to redeemable noncontrolling interests | — | — | (306,000 | ) | — | — | (306,000 | ) | (131,000 | ) | (437,000 | ) | |||||||||||||||||||
Distributions declared | — | — | — | (89,829,000 | ) | — | (89,829,000 | ) | — | (89,829,000 | ) | ||||||||||||||||||||
Net income | — | — | — | 11,707,000 | — | 11,707,000 | 1,093,000 | (1 | ) | 12,800,000 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (374,000 | ) | (374,000 | ) | — | (374,000 | ) | ||||||||||||||||||||
BALANCE — September 30, 2018 | 198,503,045 | $ | 1,985,000 | $ | 1,778,084,000 | $ | (676,166,000 | ) | $ | (2,345,000 | ) | $ | 1,101,558,000 | $ | 158,911,000 | $ | 1,260,469,000 |
Stockholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
BALANCE — December 31, 2016 | 195,780,039 | $ | 1,957,000 | $ | 1,754,160,000 | $ | (490,298,000 | ) | $ | (3,029,000 | ) | $ | 1,262,790,000 | $ | 155,763,000 | $ | 1,418,553,000 | ||||||||||||||
Offering costs — common stock | — | — | (10,000 | ) | — | — | (10,000 | ) | — | (10,000 | ) | ||||||||||||||||||||
Issuance of vested and nonvested restricted common stock | 22,500 | — | 40,000 | — | — | 40,000 | — | 40,000 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | 5,266,636 | 53,000 | 47,400,000 | — | — | 47,453,000 | — | 47,453,000 | |||||||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 131,000 | — | — | 131,000 | — | 131,000 | |||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 390,000 | 390,000 | |||||||||||||||||||||||
Repurchase of common stock | (2,699,995 | ) | (27,000 | ) | (23,995,000 | ) | — | — | (24,022,000 | ) | — | (24,022,000 | ) | ||||||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | — | — | 8,304,000 | 8,304,000 | |||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (464,000 | ) | (464,000 | ) | |||||||||||||||||||||
Reclassification of noncontrolling interests to mezzanine equity | — | — | — | — | — | — | (585,000 | ) | (585,000 | ) | |||||||||||||||||||||
Fair value adjustment to redeemable noncontrolling interests | — | — | (939,000 | ) | — | — | (939,000 | ) | (402,000 | ) | (1,341,000 | ) | |||||||||||||||||||
Distributions declared | — | — | — | (88,800,000 | ) | — | (88,800,000 | ) | — | (88,800,000 | ) | ||||||||||||||||||||
Net income (loss) | — | — | — | 4,508,000 | — | 4,508,000 | (5,438,000 | ) | (1 | ) | (930,000 | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 977,000 | 977,000 | — | 977,000 | |||||||||||||||||||||||
BALANCE — September 30, 2017 | 198,369,180 | $ | 1,983,000 | $ | 1,776,787,000 | $ | (574,590,000 | ) | $ | (2,052,000 | ) | $ | 1,202,128,000 | $ | 157,568,000 | $ | 1,359,696,000 |
(1) | For the nine months ended September 30, 2018 and 2017, amounts exclude $131,000 and $(613,000), respectively, of net income (loss) attributable to redeemable noncontrolling interests. See Note 12, Redeemable Noncontrolling Interests, for a further discussion. |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | 12,931,000 | $ | (1,543,000 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 70,190,000 | 88,442,000 | |||||
Other amortization (including deferred financing costs, above/below-market leases, leasehold interests, debt discount/premium, real estate notes receivable loan costs and debt security investment accretion and closing costs) | 3,871,000 | 4,056,000 | |||||
Deferred rent | (4,650,000 | ) | (3,913,000 | ) | |||
Stock based compensation | 585,000 | 390,000 | |||||
Stock based compensation — nonvested restricted common stock | 171,000 | 171,000 | |||||
Loss from unconsolidated entity | 3,672,000 | 3,668,000 | |||||
Bad debt expense, net | 331,000 | 5,220,000 | |||||
Gain on real estate dispositions | — | (3,370,000 | ) | ||||
Foreign currency loss (gain) | 1,619,000 | (3,678,000 | ) | ||||
Loss on extinguishment of mortgage loan payable | — | 1,432,000 | |||||
Change in fair value of contingent consideration | (1,609,000 | ) | (57,000 | ) | |||
Change in fair value of derivative financial instruments | 1,127,000 | (44,000 | ) | ||||
Impairment of real estate investments | 2,542,000 | 4,883,000 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts and other receivables | (5,325,000 | ) | (9,979,000 | ) | |||
Other assets | (12,072,000 | ) | (6,501,000 | ) | |||
Accounts payable and accrued liabilities | 3,390,000 | 8,832,000 | |||||
Accounts payable due to affiliates | 13,000 | (79,000 | ) | ||||
Security deposits, prepaid rent and other liabilities | (489,000 | ) | 610,000 | ||||
Net cash provided by operating activities | 76,297,000 | 88,540,000 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Acquisitions of real estate investments | (63,984,000 | ) | (102,241,000 | ) | |||
Proceeds from real estate dispositions | 1,000,000 | 15,993,000 | |||||
Principal repayments on real estate notes receivable | — | 26,752,000 | |||||
Investment in unconsolidated entity | (2,000,000 | ) | (1,250,000 | ) | |||
Capital expenditures | (41,753,000 | ) | (25,804,000 | ) | |||
Real estate and other deposits | (2,815,000 | ) | (876,000 | ) | |||
Proceeds from insurance settlements | — | 85,000 | |||||
Net cash used in investing activities | (109,552,000 | ) | (87,341,000 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Borrowings under mortgage loans payable | 177,637,000 | 230,452,000 | |||||
Payments on mortgage loans payable | (7,539,000 | ) | (6,110,000 | ) | |||
Settlements of mortgage loans payable | (94,449,000 | ) | (100,775,000 | ) | |||
Borrowings under the lines of credit and term loans | 206,664,000 | 269,473,000 | |||||
Payments on the lines of credit and term loans | (132,716,000 | ) | (325,756,000 | ) | |||
Deferred financing costs | (4,130,000 | ) | (5,485,000 | ) | |||
Mortgage loan payable extinguishment costs | — | (493,000 | ) | ||||
Other obligations | (1,000,000 | ) | 9,487,000 | ||||
Repurchase of common stock | (53,027,000 | ) | (24,022,000 | ) |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Repurchase of stock warrants and redeemable noncontrolling interests | $ | (306,000 | ) | $ | (204,000 | ) | |
Payments under capital leases | (5,329,000 | ) | (4,995,000 | ) | |||
Contributions from noncontrolling interest | 4,470,000 | 8,304,000 | |||||
Distributions to noncontrolling interests | (5,243,000 | ) | (460,000 | ) | |||
Contributions from redeemable noncontrolling interests | 535,000 | 975,000 | |||||
Distributions to redeemable noncontrolling interests | (497,000 | ) | (384,000 | ) | |||
Security deposits | 97,000 | 131,000 | |||||
Payment of offering costs | (6,000 | ) | (10,000 | ) | |||
Distributions paid | (44,702,000 | ) | (41,526,000 | ) | |||
Net cash provided by financing activities | 40,459,000 | 8,602,000 | |||||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ | 7,204,000 | $ | 9,801,000 | |||
EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (53,000 | ) | 132,000 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 64,143,000 | 55,677,000 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | $ | 71,294,000 | $ | 65,610,000 | |||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Cash and cash equivalents at beginning of period | $ | 33,656,000 | $ | 29,123,000 | |||
Restricted cash at beginning of period | 30,487,000 | 26,554,000 | |||||
Cash, cash equivalents and restricted cash at beginning of period | $ | 64,143,000 | $ | 55,677,000 | |||
Cash and cash equivalents at end of period | $ | 34,925,000 | $ | 35,876,000 | |||
Restricted cash at end of period | 36,369,000 | 29,734,000 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 71,294,000 | $ | 65,610,000 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid for: | |||||||
Interest (including interest on capital leases) | $ | 43,016,000 | $ | 46,117,000 | |||
Income taxes | $ | 764,000 | $ | 432,000 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES | |||||||
Investing Activities: | |||||||
Accrued capital expenditures | $ | 15,162,000 | $ | 6,163,000 | |||
Capital expenditures from capital leases | $ | 5,194,000 | $ | 5,039,000 | |||
Settlement of receivable for investment in unconsolidated entity | $ | — | $ | 1,000,000 | |||
Tenant improvement overage | $ | 1,014,000 | $ | 257,000 | |||
Exercise purchase options — attributable to intangible asset | $ | — | $ | 11,454,000 | |||
Disposition of real estate investment | $ | — | $ | 2,400,000 | |||
Reduction of capital lease obligations, net | $ | — | $ | 27,483,000 | |||
The following represents the increase (decrease) in certain assets and liabilities in connection with our acquisitions and dispositions of real estate investments: | |||||||
Other receivables | $ | — | $ | 3,155,000 | |||
Other assets, net | $ | (1,587,000 | ) | $ | 1,972,000 | ||
Accounts payable and accrued liabilities | $ | 47,000 | $ | 1,967,000 | |||
Prepaid rent and other liabilities | $ | 223,000 | $ | 2,257,000 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Financing Activities: | |||||||
Issuance of common stock under the DRIP | $ | 45,444,000 | $ | 47,453,000 | |||
Distributions declared but not paid | $ | 9,875,000 | $ | 9,830,000 | |||
Payable to transfer agent | $ | 72,000 | $ | — | |||
Reclassification of noncontrolling interests to mezzanine equity | $ | 585,000 | $ | 585,000 | |||
Accrued deferred financing costs | $ | — | $ | 87,000 | |||
Settlement of mortgage loan payable | $ | — | $ | 2,040,000 |
• | Medicare: Certain healthcare services are paid at prospectively determined rates based on cost-reimbursement methodologies subject to certain limits. |
• | Medicaid: Reimbursements for Medicaid services are generally paid at prospectively determined rates. In the state of Indiana, we participate in an Upper Payment Limit program, or IGT, with various county hospital partners, which provides supplemental Medicaid payments to skilled nursing facilities that are licensed to non-state, government-owned entities such as county hospital districts. We have operational responsibility through management agreements for facilities retained by the county hospital districts including this IGT. |
• | Other: Payment agreements with certain commercial insurance carriers, health maintenance organizations and preferred provider organizations provide for payment using prospectively determined rates per discharge, discounts from established charges and prospectively determined periodic rates. |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
As Reported | Balances Without Adoption of ASC Topic 606 | Effect of Change (Lower)/Higher | As Reported | Balances Without Adoption of ASC Topic 606 | Effect of Change Lower | |||||||||||||||||||
Resident fees and services | $ | 251,884,000 | $ | 253,397,000 | $ | (1,513,000 | ) | $ | 744,859,000 | $ | 749,860,000 | $ | (5,001,000 | ) | ||||||||||
Property operating expenses | $ | 223,665,000 | $ | 223,586,000 | $ | 79,000 | $ | 659,295,000 | $ | 659,395,000 | $ | (100,000 | ) | |||||||||||
General and administrative | $ | 6,900,000 | $ | 8,533,000 | $ | (1,633,000 | ) | $ | 19,910,000 | $ | 24,761,000 | $ | (4,851,000 | ) | ||||||||||
Net income | $ | 3,824,000 | $ | 3,783,000 | $ | 41,000 | $ | 12,931,000 | $ | 12,981,000 | $ | (50,000 | ) |
As Reported | Balances Without Adoption of ASC Topic 606 | Effect of Change Higher/(Lower) | ||||||||||
Assets | ||||||||||||
Other assets, net | $ | 110,970,000 | $ | 110,870,000 | $ | 100,000 | ||||||
Liabilities | ||||||||||||
Accounts payable and accrued liabilities | $ | 136,821,000 | $ | 136,671,000 | $ | 150,000 | ||||||
Equity | ||||||||||||
Accumulated deficit | $ | (676,166,000 | ) | $ | (676,116,000 | ) | $ | (50,000 | ) |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Point in Time | Over Time | Total | Point in Time | Over Time | Total | |||||||||||||||||||
Integrated senior health campuses | $ | 46,525,000 | $ | 189,080,000 | $ | 235,605,000 | $ | 136,347,000 | $ | 559,840,000 | $ | 696,187,000 | ||||||||||||
Senior housing — RIDEA(1) | 835,000 | 15,444,000 | 16,279,000 | 2,332,000 | 46,340,000 | 48,672,000 | ||||||||||||||||||
Total resident fees and services | $ | 47,360,000 | $ | 204,524,000 | $ | 251,884,000 | $ | 138,679,000 | $ | 606,180,000 | $ | 744,859,000 |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Integrated Senior Health Campuses | Senior Housing — RIDEA(1) | Total | Integrated Senior Health Campuses | Senior Housing — RIDEA(1) | Total | |||||||||||||||||||
Medicare | $ | 75,530,000 | $ | — | $ | 75,530,000 | $ | 208,524,000 | $ | — | $ | 208,524,000 | ||||||||||||
Medicaid | 43,101,000 | 11,000 | 43,112,000 | 124,320,000 | 14,000 | 124,334,000 | ||||||||||||||||||
Private and other payors | 116,974,000 | 16,268,000 | 133,242,000 | 363,343,000 | 48,658,000 | 412,001,000 | ||||||||||||||||||
Total resident fees and services | $ | 235,605,000 | $ | 16,279,000 | $ | 251,884,000 | $ | 696,187,000 | $ | 48,672,000 | $ | 744,859,000 |
(1) | This includes fees for basic housing and assisted living care. We record revenue when services are rendered on the date services are provided at amounts billable to individual residents. Residency agreements are generally for a term of 30 days, with resident fees billed monthly in advance. For patients under reimbursement arrangements with Medicaid, revenue is recorded based on contractually agreed-upon amounts or rates on a per resident, daily basis or as services are rendered. |
Medicare | Medicaid | Private and Other Payors | Total | |||||||||||||
Beginning balance — January 1, 2018 | $ | 29,979,000 | $ | 15,640,000 | $ | 35,706,000 | $ | 81,325,000 | ||||||||
Ending balance — September 30, 2018 | 31,501,000 | 15,257,000 | 42,346,000 | 89,104,000 | ||||||||||||
Increase/(decrease) | $ | 1,522,000 | $ | (383,000 | ) | $ | 6,640,000 | $ | 7,779,000 |
Total | ||||
Beginning balance — January 1, 2018 | $ | 9,801,000 | ||
Ending balance — September 30, 2018 | 10,765,000 | |||
Increase | $ | 964,000 |
September 30, 2018 | December 31, 2017 | ||||||
Building, improvements and construction in process | $ | 2,139,126,000 | $ | 2,058,312,000 | |||
Land and improvements | 185,902,000 | 177,999,000 | |||||
Furniture, fixtures and equipment | 119,447,000 | 99,897,000 | |||||
2,444,475,000 | 2,336,208,000 | ||||||
Less: accumulated depreciation | (233,709,000 | ) | (172,950,000 | ) | |||
$ | 2,210,766,000 | $ | 2,163,258,000 |
Acquisition(1) | Location | Type | Date Acquired | Contract Purchase Price | Lines of Credit and Term Loans(2) | Acquisition Fee(3) | ||||||||||||
North Carolina ALF Portfolio | Matthews, NC | Senior Housing | 08/30/18 | $ | 15,000,000 | $ | 13,500,000 | $ | 338,000 |
(1) | We own 100% of our property acquired in 2018. |
(2) | Represents a borrowing under the 2016 Corporate Line of Credit, as defined in Note 8, Lines of Credit and Term Loans, at the time of acquisition. |
(3) | Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.25% of the contract purchase price of such property. |
Locations | Date Acquired | Contract Purchase Price | Mortgage Loan Payable(1) | Acquisition Fee(2) | ||||||||||
Lexington, KY; Novi and Romeo, MI; and Fremont, OH | 07/20/18 | $ | 47,455,000 | $ | 47,500,000 | $ | 723,000 |
(1) | Represents the principal balance of the mortgage loan payable placed on the properties at the time of acquisition. |
(2) | Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.25% of the portion of the contract purchase price of the properties attributed to our ownership interest of approximately 67.7% in the Trilogy subsidiary that acquired the properties. |
2018 Property Acquisitions | ||||
Building and improvements | $ | 49,759,000 | ||
Land | 7,725,000 | |||
In-place leases | 6,894,000 | |||
Certificates of need | 1,313,000 | |||
Total assets acquired | $ | 65,691,000 |
Balance | |||||||||||||||||
Origination Date | Maturity Date | Contractual Interest Rate(1) | Maximum Advances Available | September 30, 2018 | December 31, 2017 | ||||||||||||
Mezzanine Fixed Rate Notes(2)(3) | 02/04/15 | 12/09/19 | 6.75% | $ | 28,650,000 | $ | 28,650,000 | $ | 28,650,000 | ||||||||
Mezzanine Floating Rate Notes(2)(3) | 02/04/15 | 12/09/18 | 8.39% | $ | 31,567,000 | 1,799,000 | 1,799,000 | ||||||||||
Debt security investment(4) | 10/15/15 | 08/25/25 | 4.24% | N/A | 67,648,000 | 65,638,000 | |||||||||||
98,097,000 | 96,087,000 | ||||||||||||||||
Unamortized loan and closing costs, net | 1,716,000 | 1,901,000 | |||||||||||||||
$ | 99,813,000 | $ | 97,988,000 |
(1) | Represents the per annum interest rate in effect as of September 30, 2018. |
(2) | The Mezzanine Fixed Rate Notes and the Mezzanine Floating Rate Notes, or collectively, the Mezzanine Notes, evidence interests in a portion of a mezzanine loan that is secured by pledges of equity interests in the owners of a portfolio of domestic healthcare properties, which such owners are themselves owned indirectly by a non-wholly owned subsidiary of Colony Capital. In November 2018, the borrower repaid the Mezzanine Floating Rate Notes in full. |
(3) | Balance represents the original principal balance, decreased by any subsequent principal paydowns. The Mezzanine Notes only require monthly interest payments and are subject to certain prepayment restrictions if repaid before the respective maturity dates. |
(4) | The commercial mortgage-backed debt security, or debt security, bears an interest rate on the stated principal amount thereof equal to 4.24% per annum, the terms of which security provide for monthly interest-only payments. The debt security matures on August 25, 2025 at a stated amount of $93,433,000, resulting in an anticipated yield-to-maturity of 10.0% per annum. The debt security was issued by an unaffiliated mortgage trust and represents a 10.0% beneficial ownership interest in such mortgage trust. The debt security is subordinate to all other interests in the mortgage trust and is not guaranteed by a government-sponsored entity. As of September 30, 2018 and December 31, 2017, the net carrying amount with accretion was $69,198,000 and $67,275,000, respectively. We classify our debt security investment as held-to-maturity and we have not recorded any unrealized holding gains or losses on such investment. |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 97,988,000 | $ | 101,117,000 | |||
Additions: | |||||||
Accretion on debt security | 2,010,000 | 1,821,000 | |||||
Deductions: | |||||||
Principal repayments on real estate notes receivable | — | (2,641,000 | ) | ||||
Amortization of loan and closing costs | (185,000 | ) | (164,000 | ) | |||
Ending balance | $ | 99,813,000 | $ | 100,133,000 |
September 30, 2018 | December 31, 2017 | ||||||
Amortized intangible assets: | |||||||
In-place leases, net of accumulated amortization of $22,544,000 and $25,967,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 9.6 years and 10.2 years as of September 30, 2018 and December 31, 2017, respectively) | $ | 49,131,000 | $ | 50,520,000 | |||
Leasehold interests, net of accumulated amortization of $512,000 and $407,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 53.9 years and 54.6 years as of September 30, 2018 and December 31, 2017, respectively) | 7,382,000 | 7,487,000 | |||||
Customer relationships, net of accumulated amortization of $149,000 and $37,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 19.0 years and 19.8 years as of September 30, 2018 and December 31, 2017, respectively) | 2,691,000 | 2,803,000 | |||||
Above-market leases, net of accumulated amortization of $2,807,000 and $3,335,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 5.2 years as of both September 30, 2018 and December 31, 2017) | 2,259,000 | 3,026,000 | |||||
Internally developed technology and software, net of accumulated amortization of $94,000 and $23,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 4.0 years and 4.8 years as of September 30, 2018 and December 31, 2017, respectively) | 376,000 | 447,000 | |||||
Unamortized intangible assets: | |||||||
Certificates of need | 85,773,000 | 83,320,000 | |||||
Trade names | 30,787,000 | 30,787,000 | |||||
Purchase option asset(1) | 1,918,000 | 1,918,000 | |||||
$ | 180,317,000 | $ | 180,308,000 |
(1) | Under one of our integrated senior health campus leases, in which we are the lessee, we have the right to acquire the property at a date in the future and at our option. We estimated the fair value of this purchase option asset by discounting the difference between the property’s acquisition date fair value and an estimate of its future option price. We do not amortize the resulting intangible asset over the term of the lease, but rather adjust the recognized value of the asset upon purchase. |
Year | Amount | |||
2018 | $ | 3,500,000 | ||
2019 | 10,211,000 | |||
2020 | 6,142,000 | |||
2021 | 5,569,000 | |||
2022 | 4,849,000 | |||
Thereafter | 31,568,000 | |||
$ | 61,839,000 |
September 30, 2018 | December 31, 2017 | ||||||
Prepaid expenses, deposits and other assets | $ | 31,908,000 | $ | 21,796,000 | |||
Deferred rent receivables | 22,418,000 | 17,458,000 | |||||
Inventory | 16,790,000 | 19,311,000 | |||||
Investment in unconsolidated entity(1) | 15,586,000 | 17,259,000 | |||||
Deferred tax assets, net(2) | 8,594,000 | 6,882,000 | |||||
Lease commissions, net of accumulated amortization of $1,080,000 and $606,000 as of September 30, 2018 and December 31, 2017, respectively | 8,110,000 | 5,426,000 | |||||
Lease inducement, net of accumulated amortization of $702,000 and $439,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 12.3 years and 13.0 years as of September 30, 2018 and December 31, 2017, respectively) | 4,298,000 | 4,561,000 | |||||
Deferred financing costs, net of accumulated amortization of $11,428,000 and $7,850,000 as of September 30, 2018 and December 31, 2017, respectively(3) | 3,266,000 | 6,327,000 | |||||
$ | 110,970,000 | $ | 99,020,000 |
(1) | Represents our investment in RHS Partners, LLC, or RHS, a privately-held company that operates 16 integrated senior health campuses. Our effective ownership of RHS is 33.8% as of both September 30, 2018 and December 31, 2017. |
(2) | See Note 16, Income Taxes, for a further discussion. |
(3) | In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, or ASU 2015-03, and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, or ASU 2015-15, deferred financing costs, net only include costs related to our lines of credit and term loans. |
September 30, 2018 | December 31, 2017 | |||||||
Balance Sheet Data: | ||||||||
Total assets | $ | 47,473,000 | $ | 48,176,000 | ||||
Total liabilities | $ | 24,037,000 | $ | 21,395,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Statement of Operations Data: | |||||||||||||||
Revenues | $ | 32,346,000 | $ | 32,305,000 | $ | 96,516,000 | $ | 96,018,000 | |||||||
Expenses | 34,622,000 | 35,292,000 | 103,861,000 | 103,353,000 | |||||||||||
Net loss | $ | (2,276,000 | ) | $ | (2,987,000 | ) | $ | (7,345,000 | ) | $ | (7,335,000 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Total fixed-rate debt | $ | 626,628,000 | $ | 526,503,000 | |||
Total variable-rate debt | 85,350,000 | 109,826,000 | |||||
Total fixed- and variable-rate debt | 711,978,000 | 636,329,000 | |||||
Less: deferred financing costs, net(1) | (8,908,000 | ) | (6,290,000 | ) | |||
Add: premium | 752,000 | 1,176,000 | |||||
Less: discount | (16,868,000 | ) | (17,657,000 | ) | |||
Mortgage loans payable, net | $ | 686,954,000 | $ | 613,558,000 |
(1) | In accordance with ASU 2015-03 and ASU 2015-15, deferred financing costs, net only include costs related to our mortgage loans payable. |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 613,558,000 | $ | 495,717,000 | |||
Additions: | |||||||
Borrowings on mortgage loans payable | 177,637,000 | 230,452,000 | |||||
Amortization of deferred financing costs | 995,000 | 2,060,000 | |||||
Amortization of discount/premium on mortgage loans payable | 365,000 | 858,000 | |||||
Deductions: | |||||||
Scheduled principal payments on mortgage loans payable | (7,539,000 | ) | (6,110,000 | ) | |||
Settlements of mortgage loans payable | (94,449,000 | ) | (102,815,000 | ) | |||
Deferred financing costs | (3,613,000 | ) | (4,816,000 | ) | |||
Ending balance | $ | 686,954,000 | $ | 615,346,000 |
Year | Amount | |||
2018 | $ | 2,793,000 | ||
2019 | 11,611,000 | |||
2020 | 82,849,000 | |||
2021 | 37,387,000 | |||
2022 | 61,083,000 | |||
Thereafter | 516,255,000 | |||
$ | 711,978,000 |
Fair Value | ||||||||||||||||||
Instrument | Notional Amount | Index | Interest Rate | Maturity Date | September 30, 2018 | December 31, 2017 | ||||||||||||
Swap | $ | 140,000,000 | one month LIBOR | 0.82% | 02/03/19 | $ | 746,000 | $ | 1,486,000 | |||||||||
Swap | 60,000,000 | one month LIBOR | 0.78% | 02/03/19 | 327,000 | 661,000 | ||||||||||||
Swap | 50,000,000 | one month LIBOR | 1.39% | 02/03/19 | 166,000 | 219,000 | ||||||||||||
$ | 250,000,000 | $ | 1,239,000 | $ | 2,366,000 |
Year | Amount | |||
2018 | $ | 106,000 | ||
2019 | 392,000 | |||
2020 | 263,000 | |||
2021 | 146,000 | |||
2022 | 97,000 | |||
Thereafter | 188,000 | |||
$ | 1,192,000 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 32,435,000 | $ | 31,507,000 | |||
Additions | 535,000 | 975,000 | |||||
Reclassification from equity | 585,000 | 585,000 | |||||
Distributions | (497,000 | ) | (384,000 | ) | |||
Repurchase of redeemable noncontrolling interest | (229,000 | ) | (59,000 | ) | |||
Fair value adjustment to redemption value | 437,000 | 1,341,000 | |||||
Net income (loss) attributable to redeemable noncontrolling interests | 131,000 | (613,000 | ) | ||||
Ending balance | $ | 33,397,000 | $ | 33,352,000 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Beginning balance — foreign currency translation adjustments | $ | (1,971,000 | ) | $ | (3,029,000 | ) | |
Net change in current period | (374,000 | ) | 977,000 | ||||
Ending balance — foreign currency translation adjustments | $ | (2,345,000 | ) | $ | (2,052,000 | ) |
Fee | September 30, 2018 | December 31, 2017 | ||||||
Asset and property management fees | $ | 1,833,000 | $ | 1,783,000 | ||||
Acquisition fees | 79,000 | 115,000 | ||||||
Construction management fees | 38,000 | 14,000 | ||||||
Lease commissions | 34,000 | 31,000 | ||||||
Operating expenses | 10,000 | 10,000 | ||||||
Development fees | — | 104,000 | ||||||
$ | 1,994,000 | $ | 2,057,000 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | $ | — | $ | 1,239,000 | $ | — | $ | 1,239,000 | |||||||
Contingent consideration receivable | — | — | — | — | |||||||||||
Total assets at fair value | $ | — | $ | 1,239,000 | $ | — | $ | 1,239,000 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration obligations | $ | — | $ | — | $ | 3,498,000 | $ | 3,498,000 | |||||||
Warrants | — | — | 1,078,000 | 1,078,000 | |||||||||||
Total liabilities at fair value | $ | — | $ | — | $ | 4,576,000 | $ | 4,576,000 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | $ | — | $ | 2,366,000 | $ | — | $ | 2,366,000 | |||||||
Contingent consideration receivable | — | — | — | — | |||||||||||
Total assets at fair value | $ | — | $ | 2,366,000 | $ | — | $ | 2,366,000 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration obligations | $ | — | $ | — | $ | 5,107,000 | $ | 5,107,000 | |||||||
Warrants | — | — | 1,155,000 | 1,155,000 | |||||||||||
Total liabilities at fair value | $ | — | $ | — | $ | 6,262,000 | $ | 6,262,000 |
September 30, 2018 | December 31, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial Assets: | |||||||||||||||
Real estate notes receivable | $ | 30,615,000 | $ | 30,615,000 | $ | 30,713,000 | $ | 31,414,000 | |||||||
Debt security investment | $ | 69,198,000 | $ | 93,396,000 | $ | 67,275,000 | $ | 94,202,000 | |||||||
Financial Liabilities: | |||||||||||||||
Mortgage loans payable | $ | 686,954,000 | $ | 617,388,000 | $ | 613,558,000 | $ | 570,918,000 | |||||||
Lines of credit and term loans | $ | 694,807,000 | $ | 697,953,000 | $ | 617,798,000 | $ | 624,102,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Domestic | $ | 3,926,000 | $ | 3,875,000 | $ | 12,248,000 | $ | (2,318,000 | ) | ||||||
Foreign | (146,000 | ) | (134,000 | ) | (258,000 | ) | (723,000 | ) | |||||||
Income (loss) before income taxes | $ | 3,780,000 | $ | 3,741,000 | $ | 11,990,000 | $ | (3,041,000 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Federal deferred | $ | (1,291,000 | ) | $ | (1,996,000 | ) | $ | (3,769,000 | ) | $ | (5,478,000 | ) | |||
State deferred | (270,000 | ) | (200,000 | ) | (773,000 | ) | (549,000 | ) | |||||||
State current | 4,000 | — | 4,000 | — | |||||||||||
Foreign deferred | — | — | — | (61,000 | ) | ||||||||||
Foreign current | 387,000 | 90,000 | 568,000 | 239,000 | |||||||||||
Valuation allowances | 1,126,000 | 1,386,000 | 3,029,000 | 4,351,000 | |||||||||||
$ | (44,000 | ) | $ | (720,000 | ) | $ | (941,000 | ) | $ | (1,498,000 | ) |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Three Months Ended September 30, 2018 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 235,605,000 | $ | 16,279,000 | $ | — | $ | — | $ | — | $ | — | $ | 251,884,000 | ||||||||||||||
Real estate revenue | — | — | 20,029,000 | 5,472,000 | 3,716,000 | 3,078,000 | 32,295,000 | |||||||||||||||||||||
Total revenues | 235,605,000 | 16,279,000 | 20,029,000 | 5,472,000 | 3,716,000 | 3,078,000 | 284,179,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 212,519,000 | 11,146,000 | — | — | — | — | 223,665,000 | |||||||||||||||||||||
Rental expenses | — | — | 7,577,000 | 211,000 | 391,000 | 398,000 | 8,577,000 | |||||||||||||||||||||
Segment net operating income | $ | 23,086,000 | $ | 5,133,000 | $ | 12,452,000 | $ | 5,261,000 | $ | 3,325,000 | $ | 2,680,000 | $ | 51,937,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 6,900,000 | ||||||||||||||||||||||||||
Acquisition related expenses | (1,102,000 | ) | ||||||||||||||||||||||||||
Depreciation and amortization | 23,816,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium) | (16,538,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (750,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entity | (1,137,000 | ) | ||||||||||||||||||||||||||
Foreign currency loss | (619,000 | ) | ||||||||||||||||||||||||||
Other income | 501,000 | |||||||||||||||||||||||||||
Income before income taxes | 3,780,000 | |||||||||||||||||||||||||||
Income tax benefit | 44,000 | |||||||||||||||||||||||||||
Net income | $ | 3,824,000 |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Three Months Ended September 30, 2017 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 214,555,000 | $ | 16,213,000 | $ | — | $ | — | $ | — | $ | — | $ | 230,768,000 | ||||||||||||||
Real estate revenue | — | — | 19,971,000 | 5,270,000 | 3,775,000 | 2,964,000 | 31,980,000 | |||||||||||||||||||||
Total revenues | 214,555,000 | 16,213,000 | 19,971,000 | 5,270,000 | 3,775,000 | 2,964,000 | 262,748,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 188,224,000 | 10,823,000 | — | — | — | — | 199,047,000 | |||||||||||||||||||||
Rental expenses | — | — | 7,343,000 | 166,000 | 415,000 | 375,000 | 8,299,000 | |||||||||||||||||||||
Segment net operating income | $ | 26,331,000 | $ | 5,390,000 | $ | 12,628,000 | $ | 5,104,000 | $ | 3,360,000 | $ | 2,589,000 | $ | 55,402,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 9,270,000 | ||||||||||||||||||||||||||
Acquisition related expenses | 71,000 | |||||||||||||||||||||||||||
Depreciation and amortization | 27,579,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (14,773,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (59,000 | ) | ||||||||||||||||||||||||||
Loss on dispositions of real estate investments | (9,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entity | (1,494,000 | ) | ||||||||||||||||||||||||||
Foreign currency gain | 1,384,000 | |||||||||||||||||||||||||||
Other income | 210,000 | |||||||||||||||||||||||||||
Income before income taxes | 3,741,000 | |||||||||||||||||||||||||||
Income tax benefit | 720,000 | |||||||||||||||||||||||||||
Net income | $ | 4,461,000 |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 696,187,000 | $ | 48,672,000 | $ | — | $ | — | $ | — | $ | — | $ | 744,859,000 | ||||||||||||||
Real estate revenue | — | — | 60,316,000 | 16,265,000 | 11,183,000 | 9,711,000 | 97,475,000 | |||||||||||||||||||||
Total revenues | 696,187,000 | 48,672,000 | 60,316,000 | 16,265,000 | 11,183,000 | 9,711,000 | 842,334,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 626,091,000 | 33,204,000 | — | — | — | — | 659,295,000 | |||||||||||||||||||||
Rental expenses | — | — | 23,255,000 | 583,000 | 1,207,000 | 1,219,000 | 26,264,000 | |||||||||||||||||||||
Segment net operating income | $ | 70,096,000 | $ | 15,468,000 | $ | 37,061,000 | $ | 15,682,000 | $ | 9,976,000 | $ | 8,492,000 | $ | 156,775,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 19,910,000 | ||||||||||||||||||||||||||
Acquisition related expenses | (1,657,000 | ) | ||||||||||||||||||||||||||
Depreciation and amortization | 70,190,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium) | (48,369,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (1,127,000 | ) | ||||||||||||||||||||||||||
Impairment of real estate investments | (2,542,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entity | (3,672,000 | ) | ||||||||||||||||||||||||||
Foreign currency loss | (1,652,000 | ) | ||||||||||||||||||||||||||
Other income | 1,020,000 | |||||||||||||||||||||||||||
Income before income taxes | 11,990,000 | |||||||||||||||||||||||||||
Income tax benefit | 941,000 | |||||||||||||||||||||||||||
Net income | $ | 12,931,000 |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 634,252,000 | $ | 48,048,000 | $ | — | $ | — | $ | — | $ | — | $ | 682,300,000 | ||||||||||||||
Real estate revenue | — | — | 58,879,000 | 15,598,000 | 11,228,000 | 9,717,000 | 95,422,000 | |||||||||||||||||||||
Total revenues | 634,252,000 | 48,048,000 | 58,879,000 | 15,598,000 | 11,228,000 | 9,717,000 | 777,722,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 563,592,000 | 32,507,000 | — | — | — | — | 596,099,000 | |||||||||||||||||||||
Rental expenses | — | — | 22,068,000 | 501,000 | 1,204,000 | 1,152,000 | 24,925,000 | |||||||||||||||||||||
Segment net operating income | $ | 70,660,000 | $ | 15,541,000 | $ | 36,811,000 | $ | 15,097,000 | $ | 10,024,000 | $ | 8,565,000 | $ | 156,698,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 24,642,000 | ||||||||||||||||||||||||||
Acquisition related expenses | 532,000 | |||||||||||||||||||||||||||
Depreciation and amortization | 88,442,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (45,356,000 | ) | ||||||||||||||||||||||||||
Gain in fair value of derivative financial instruments | 44,000 | |||||||||||||||||||||||||||
Gain on dispositions of real estate investments | 3,370,000 | |||||||||||||||||||||||||||
Impairment of real estate investments | (4,883,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entity | (3,668,000 | ) | ||||||||||||||||||||||||||
Foreign currency gain | 3,697,000 | |||||||||||||||||||||||||||
Other income | 673,000 | |||||||||||||||||||||||||||
Loss before income taxes | (3,041,000 | ) | ||||||||||||||||||||||||||
Income tax benefit | 1,498,000 | |||||||||||||||||||||||||||
Net loss | $ | (1,543,000 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Integrated senior health campuses | $ | 1,447,243,000 | $ | 1,366,245,000 | |||
Medical office buildings | 653,967,000 | 662,959,000 | |||||
Senior housing — RIDEA | 273,893,000 | 279,388,000 | |||||
Senior housing | 244,497,000 | 231,559,000 | |||||
Skilled nursing facilities | 128,882,000 | 129,359,000 | |||||
Hospitals | 119,632,000 | 123,431,000 | |||||
Other | 4,440,000 | 7,534,000 | |||||
$ | 2,872,554,000 | $ | 2,800,475,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 282,977,000 | $ | 261,551,000 | $ | 838,603,000 | $ | 774,230,000 | ||||||||
International | 1,202,000 | 1,197,000 | 3,731,000 | 3,492,000 | ||||||||||||
$ | 284,179,000 | $ | 262,748,000 | $ | 842,334,000 | $ | 777,722,000 |
September 30, 2018 | December 31, 2017 | ||||||
Real estate investments, net: | |||||||
United States | $ | 2,160,641,000 | $ | 2,110,280,000 | |||
International | 50,125,000 | 52,978,000 | |||||
$ | 2,210,766,000 | $ | 2,163,258,000 |
• | Medicare: Certain healthcare services are paid at prospectively determined rates based on cost-reimbursement methodologies subject to certain limits. |
• | Medicaid: Reimbursements for Medicaid services are generally paid at prospectively determined rates. In the state of Indiana, we participate in an Upper Payment Limit program, or IGT, with various county hospital partners, which provides supplemental Medicaid payments to skilled nursing facilities that are licensed to non-state, government-owned entities such as county hospital districts. We have operational responsibility through management agreements for facilities retained by the county hospital districts including this IGT. |
• | Other: Payment agreements with certain commercial insurance carriers, health maintenance organizations and preferred provider organizations provide for payment using prospectively determined rates per discharge, discounts from established charges and prospectively determined periodic rates. |
September 30, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Number of Buildings/ Campuses | Aggregate Contract Purchase Price | Leased % | Number of Buildings/ Campuses | Aggregate Contract Purchase Price | Leased % | ||||||||||||||
Integrated senior health campuses | 111 | $ | 1,493,028,000 | (1 | ) | 107 | $ | 1,417,074,000 | (1 | ) | |||||||||
Medical office buildings | 64 | 664,135,000 | 89.3 | % | 63 | 659,095,000 | 92.3 | % | |||||||||||
Senior housing | 15 | 188,391,000 | 100 | % | 14 | 173,391,000 | 100 | % | |||||||||||
Senior housing — RIDEA | 13 | 320,035,000 | (2 | ) | 13 | 320,035,000 | (2 | ) | |||||||||||
Skilled nursing facilities | 7 | 128,000,000 | 100 | % | 7 | 128,000,000 | 100 | % | |||||||||||
Hospitals | 2 | 139,780,000 | 100 | % | 2 | 139,780,000 | 100 | % | |||||||||||
Total/weighted average(3) | 212 | $ | 2,933,369,000 | 92.5 | % | 206 | $ | 2,837,375,000 | 94.6 | % |
(1) | For the three and nine months ended September 30, 2018, the leased percentage for the resident units of our integrated senior health campuses was 83.8% and 84.2%, respectively. For both the three and nine months ended September 30, 2017, the leased percentage for the resident units of our integrated senior health campuses was 85.5%. |
(2) | For the three and nine months ended September 30, 2018, the leased percentage for the resident units of our senior housing — RIDEA facilities was 84.5% and 84.8%, respectively. For the three and nine months ended September 30, 2017, the leased percentage for the resident units of our senior housing — RIDEA facilities was 85.5% and 84.7%, respectively. |
(3) | Leased percentage excludes our senior housing — RIDEA facilities and integrated senior health campuses. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Resident Fees and Services | |||||||||||||||
Integrated senior health campuses | $ | 235,605,000 | $ | 214,555,000 | $ | 696,187,000 | $ | 634,252,000 | |||||||
Senior housing — RIDEA | 16,279,000 | 16,213,000 | 48,672,000 | 48,048,000 | |||||||||||
Total resident fees and services | 251,884,000 | 230,768,000 | 744,859,000 | 682,300,000 | |||||||||||
Real Estate Revenue | |||||||||||||||
Medical office buildings | 20,029,000 | 19,971,000 | 60,316,000 | 58,879,000 | |||||||||||
Senior housing | 5,472,000 | 5,270,000 | 16,265,000 | 15,598,000 | |||||||||||
Skilled nursing facilities | 3,716,000 | 3,775,000 | 11,183,000 | 11,228,000 | |||||||||||
Hospitals | 3,078,000 | 2,964,000 | 9,711,000 | 9,717,000 | |||||||||||
Total real estate revenue | 32,295,000 | 31,980,000 | 97,475,000 | 95,422,000 | |||||||||||
Total revenues | $ | 284,179,000 | $ | 262,748,000 | $ | 842,334,000 | $ | 777,722,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Property Operating Expenses | |||||||||||||||||||||||||||
Integrated senior health campuses | $ | 212,519,000 | 90.2 | % | $ | 188,224,000 | 87.7 | % | $ | 626,091,000 | 89.9 | % | $ | 563,592,000 | 88.9 | % | |||||||||||
Senior housing — RIDEA | 11,146,000 | 68.5 | % | 10,823,000 | 66.8 | % | 33,204,000 | 68.2 | % | 32,507,000 | 67.7 | % | |||||||||||||||
Total property operating expenses | $ | 223,665,000 | 88.8 | % | $ | 199,047,000 | 86.3 | % | $ | 659,295,000 | 88.5 | % | $ | 596,099,000 | 87.4 | % | |||||||||||
Rental Expenses | |||||||||||||||||||||||||||
Medical office buildings | $ | 7,577,000 | 37.8 | % | $ | 7,343,000 | 36.8 | % | $ | 23,255,000 | 38.6 | % | $ | 22,068,000 | 37.5 | % | |||||||||||
Hospitals | 398,000 | 12.9 | % | 375,000 | 12.7 | % | 1,219,000 | 12.6 | % | 1,152,000 | 11.9 | % | |||||||||||||||
Skilled nursing facilities | 391,000 | 10.5 | % | 415,000 | 11.0 | % | 1,207,000 | 10.8 | % | 1,204,000 | 10.7 | % | |||||||||||||||
Senior housing | 211,000 | 3.9 | % | 166,000 | 3.1 | % | 583,000 | 3.6 | % | 501,000 | 3.2 | % | |||||||||||||||
Total rental expenses | $ | 8,577,000 | 26.6 | % | $ | 8,299,000 | 26.0 | % | $ | 26,264,000 | 26.9 | % | $ | 24,925,000 | 26.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Asset management fees — affiliates | $ | 4,873,000 | $ | 4,713,000 | $ | 14,438,000 | $ | 14,054,000 | |||||||
Professional and legal fees | 1,030,000 | 992,000 | 1,963,000 | 2,077,000 | |||||||||||
Transfer agent services | 305,000 | 306,000 | 928,000 | 997,000 | |||||||||||
Stock compensation expense | 195,000 | 195,000 | 585,000 | 390,000 | |||||||||||
Bank charges | 113,000 | 104,000 | 331,000 | 301,000 | |||||||||||
Franchise taxes | 101,000 | 241,000 | 348,000 | 400,000 | |||||||||||
Directors’ and officers’ liability insurance | 78,000 | 80,000 | 236,000 | 241,000 | |||||||||||
Board of directors fees | 72,000 | 61,000 | 190,000 | 182,000 | |||||||||||
Restricted stock compensation | 72,000 | 71,000 | 171,000 | 171,000 | |||||||||||
Bad debt expense | 48,000 | 2,313,000 | 331,000 | 5,220,000 | |||||||||||
Other | 13,000 | 194,000 | 389,000 | 609,000 | |||||||||||
Total | $ | 6,900,000 | $ | 9,270,000 | $ | 19,910,000 | $ | 24,642,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest expense — mortgage loans payable | $ | 7,186,000 | $ | 7,109,000 | $ | 21,448,000 | $ | 19,450,000 | |||||||
Interest expense — lines of credit and term loans and derivative financial instruments | 7,646,000 | 5,976,000 | 21,117,000 | 18,795,000 | |||||||||||
Amortization of deferred financing costs — lines of credit and term loans | 981,000 | 978,000 | 3,578,000 | 2,828,000 | |||||||||||
Amortization of deferred financing costs — mortgage loans payable | 346,000 | 296,000 | 995,000 | 1,120,000 | |||||||||||
Amortization of debt discount/premium, net | 88,000 | 142,000 | 365,000 | 858,000 | |||||||||||
Loss (gain) in fair value of derivative financial instruments | 750,000 | 59,000 | 1,127,000 | (44,000 | ) | ||||||||||
Loss on extinguishment of mortgage loan payable | — | — | — | 1,432,000 | |||||||||||
Interest expense on other liabilities | 291,000 | 272,000 | 866,000 | 873,000 | |||||||||||
Total | $ | 17,288,000 | $ | 14,832,000 | $ | 49,496,000 | $ | 45,312,000 |
Nine Months Ended September 30, | ||||||||
2018 | 2017 | |||||||
Cash, cash equivalents and restricted cash — beginning of period | $ | 64,143,000 | $ | 55,677,000 | ||||
Net cash provided by operating activities | 76,297,000 | 88,540,000 | ||||||
Net cash used in investing activities | (109,552,000 | ) | (87,341,000 | ) | ||||
Net cash provided by financing activities | 40,459,000 | 8,602,000 | ||||||
Effect of foreign currency translation on cash, cash equivalents and restricted cash | (53,000 | ) | 132,000 | |||||
Cash, cash equivalents and restricted cash — end of period | $ | 71,294,000 | $ | 65,610,000 |
Nine Months Ended September 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Distributions paid in cash | $ | 44,702,000 | $ | 41,526,000 | |||||||||
Distributions reinvested | 45,444,000 | 47,453,000 | |||||||||||
$ | 90,146,000 | $ | 88,979,000 | ||||||||||
Sources of distributions: | |||||||||||||
Cash flows from operations | $ | 76,297,000 | 84.6 | % | $ | 88,540,000 | 99.5 | % | |||||
Proceeds from borrowings | 13,849,000 | 15.4 | 439,000 | 0.5 | |||||||||
$ | 90,146,000 | 100 | % | $ | 88,979,000 | 100 | % |
Nine Months Ended September 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Distributions paid in cash | $ | 44,702,000 | $ | 41,526,000 | |||||||||
Distributions reinvested | 45,444,000 | 47,453,000 | |||||||||||
$ | 90,146,000 | $ | 88,979,000 | ||||||||||
Sources of distributions: | |||||||||||||
FFO attributable to controlling interest | $ | 74,015,000 | 82.1 | % | $ | 78,175,000 | 87.9 | % | |||||
Proceeds from borrowings | 16,131,000 | 17.9 | 10,804,000 | 12.1 | |||||||||
$ | 90,146,000 | 100 | % | $ | 88,979,000 | 100 | % |
Payments Due by Period | |||||||||||||||||||
2018 | 2019-2020 | 2021-2022 | Thereafter | Total | |||||||||||||||
Principal payments — fixed-rate debt | $ | 2,778,000 | $ | 34,354,000 | $ | 73,241,000 | $ | 516,255,000 | $ | 626,628,000 | |||||||||
Interest payments — fixed-rate debt | 5,797,000 | 45,231,000 | 42,258,000 | 297,636,000 | 390,922,000 | ||||||||||||||
Principal payments — variable-rate debt | 15,000 | 743,124,000 | 40,284,000 | — | 783,423,000 | ||||||||||||||
Interest payments — variable-rate debt (based on rates in effect as of September 30, 2018) | 9,351,000 | 23,061,000 | 1,081,000 | — | 33,493,000 | ||||||||||||||
Ground and other lease obligations | 4,579,000 | 37,591,000 | 39,569,000 | 189,315,000 | 271,054,000 | ||||||||||||||
Capital leases | 1,932,000 | 11,129,000 | 4,347,000 | 277,000 | 17,685,000 | ||||||||||||||
Other liabilities | 25,000 | 1,049,000 | — | — | 1,074,000 | ||||||||||||||
Total | $ | 24,477,000 | $ | 895,539,000 | $ | 200,780,000 | $ | 1,003,483,000 | $ | 2,124,279,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 3,824,000 | $ | 4,461,000 | $ | 12,931,000 | $ | (1,543,000 | ) | ||||||
Add: | |||||||||||||||
Depreciation and amortization — consolidated properties | 23,816,000 | 27,579,000 | 70,190,000 | 88,442,000 | |||||||||||
Depreciation and amortization — unconsolidated properties | 270,000 | 270,000 | 847,000 | 795,000 | |||||||||||
Impairment of real estate investments | — | — | 2,542,000 | 4,883,000 | |||||||||||
Net (income) loss attributable to redeemable noncontrolling interests and noncontrolling interests | (212,000 | ) | 176,000 | (1,224,000 | ) | 6,051,000 | |||||||||
Less: | |||||||||||||||
Loss (gain) on dispositions of real estate investments | — | 9,000 | — | (3,370,000 | ) | ||||||||||
Depreciation, amortization, impairments and (gain) loss on dispositions related to redeemable noncontrolling interests and noncontrolling interests | (3,902,000 | ) | (4,792,000 | ) | (11,271,000 | ) | (17,083,000 | ) | |||||||
FFO attributable to controlling interest | $ | 23,796,000 | $ | 27,703,000 | $ | 74,015,000 | $ | 78,175,000 | |||||||
Acquisition related expenses(1) | $ | (1,102,000 | ) | $ | 71,000 | $ | (1,657,000 | ) | $ | 532,000 | |||||
Amortization of above- and below-market leases(2) | 103,000 | 183,000 | 390,000 | 538,000 | |||||||||||
Amortization of loan and closing costs(3) | 64,000 | 57,000 | 185,000 | 164,000 | |||||||||||
Change in deferred rent(4) | (1,896,000 | ) | (1,110,000 | ) | (4,650,000 | ) | (3,913,000 | ) | |||||||
Loss on extinguishment of mortgage loan payable(5) | — | — | — | 1,432,000 | |||||||||||
Loss (gain) in fair value of derivative financial instruments(6) | 750,000 | 59,000 | 1,127,000 | (44,000 | ) | ||||||||||
Foreign currency loss (gain)(7) | 619,000 | (1,384,000 | ) | 1,652,000 | (3,697,000 | ) | |||||||||
Adjustments for unconsolidated properties(8) | 402,000 | 582,000 | 1,257,000 | 1,520,000 | |||||||||||
Adjustments for redeemable noncontrolling interests and noncontrolling interests(8) | (146,000 | ) | (495,000 | ) | (966,000 | ) | (1,659,000 | ) | |||||||
MFFO attributable to controlling interest | $ | 22,590,000 | $ | 25,666,000 | $ | 71,353,000 | $ | 73,048,000 | |||||||
Weighted average common shares outstanding — basic and diluted | 199,818,444 | 198,733,528 | 200,120,637 | 197,832,280 | |||||||||||
Net income (loss) per common share — basic and diluted | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | (0.01 | ) | ||||||
FFO attributable to controlling interest per common share — basic and diluted | $ | 0.12 | $ | 0.14 | $ | 0.37 | $ | 0.40 | |||||||
MFFO attributable to controlling interest per common share — basic and diluted | $ | 0.11 | $ | 0.13 | $ | 0.36 | $ | 0.37 |
(1) | In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition related expenses, we believe MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or its affiliates and third parties. Certain acquisition related expenses under GAAP, such as expenses incurred in connection with property acquisitions accounted for as business combinations, are considered operating expenses and as expenses included in the determination of net |
(2) | Under GAAP, above- and below-market leases are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate-related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, we believe that by excluding charges relating to the amortization of above- and below-market leases, MFFO may provide useful supplemental information on the performance of the real estate. |
(3) | Under GAAP, direct loan and closing costs are amortized over the term of our notes receivable and debt security investment as an adjustment to the yield on our notes receivable or debt security investment. This may result in income recognition that is different than the contractual cash flows under our notes receivable and debt security investment. By adjusting for the amortization of the loan and closing costs related to our real estate notes receivable and debt security investment, MFFO may provide useful supplemental information on the realized economic impact of our notes receivable and debt security investment terms, providing insight on the expected contractual cash flows of such notes receivable and debt security investment, and aligns results with our analysis of operating performance. |
(4) | Under GAAP, rental revenue or rental expense is recognized on a straight-line basis over the terms of the related lease (including rent holidays). This may result in income or expense recognition that is significantly different than the underlying contract terms. By adjusting for the change in deferred rent, MFFO may provide useful supplemental information on the realized economic impact of lease terms, providing insight on the expected contractual cash flows of such lease terms, and aligns results with our analysis of operating performance. |
(5) | The loss associated with the early extinguishment of debt includes the write-off of unamortized deferred financing fees, as well as expenses, penalties or other fees incurred. We believe that adjusting for such non-recurring losses provides useful supplemental information because such charges (or losses) may not be reflective of on-going transactions and operations and is consistent with management’s analysis of our operating performance. |
(6) | Under GAAP, we are required to record our derivative financial instruments at fair value at each reporting period. We believe that adjusting for the change in fair value of our derivative financial instruments is appropriate because such adjustments may not be reflective of on-going operations and reflect unrealized impacts on value based only on then current market conditions, although they may be based upon general market conditions. The need to reflect the change in fair value of our derivative financial instruments is a continuous process and is analyzed on a quarterly basis in accordance with GAAP. |
(7) | We believe that adjusting for the change in foreign currency exchange rates provides useful information because such adjustments may not be reflective of on-going operations. |
(8) | Includes all adjustments to eliminate the unconsolidated properties’ share or redeemable noncontrolling interests and noncontrolling interests’ share, as applicable, of the adjustments described in notes (1) – (7) above to convert our FFO to MFFO. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 3,824,000 | $ | 4,461,000 | $ | 12,931,000 | $ | (1,543,000 | ) | ||||||
General and administrative | 6,900,000 | 9,270,000 | 19,910,000 | 24,642,000 | |||||||||||
Acquisition related expenses | (1,102,000 | ) | 71,000 | (1,657,000 | ) | 532,000 | |||||||||
Depreciation and amortization | 23,816,000 | 27,579,000 | 70,190,000 | 88,442,000 | |||||||||||
Interest expense | 17,288,000 | 14,832,000 | 49,496,000 | 45,312,000 | |||||||||||
Loss (gain) on dispositions of real estate investments | — | 9,000 | — | (3,370,000 | ) | ||||||||||
Impairment of real estate investments | — | — | 2,542,000 | 4,883,000 | |||||||||||
Loss from unconsolidated entity | 1,137,000 | 1,494,000 | 3,672,000 | 3,668,000 | |||||||||||
Foreign currency loss (gain) | 619,000 | (1,384,000 | ) | 1,652,000 | (3,697,000 | ) | |||||||||
Other income | (501,000 | ) | (210,000 | ) | (1,020,000 | ) | (673,000 | ) | |||||||
Income tax benefit | (44,000 | ) | (720,000 | ) | (941,000 | ) | (1,498,000 | ) | |||||||
Net operating income | $ | 51,937,000 | $ | 55,402,000 | $ | 156,775,000 | $ | 156,698,000 |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Fixed-rate notes receivable — principal payments | $ | — | $ | 28,650,000 | $ | — | $ | — | $ | — | $ | — | $ | 28,650,000 | $ | 28,816,000 | |||||||||||||||
Weighted average interest rate on maturing fixed-rate notes receivable | — | % | 6.75 | % | — | % | — | % | — | % | — | % | 6.75 | % | — | ||||||||||||||||
Variable-rate notes receivable — principal payments | $ | 1,799,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,799,000 | $ | 1,799,000 | |||||||||||||||
Weighted average interest rate on maturing variable-rate notes receivable (based on rates in effect as of September 30, 2018) | 8.39 | % | — | % | — | % | — | % | — | % | — | % | 8.39 | % | — | ||||||||||||||||
Debt security held-to-maturity | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 93,433,000 | $ | 93,433,000 | $ | 93,396,000 | |||||||||||||||
Weighted average interest rate on maturing fixed-rate debt security | — | % | — | % | — | % | — | % | — | % | 4.24 | % | 4.24 | % | — | ||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed-rate debt — principal payments | $ | 2,778,000 | $ | 11,551,000 | $ | 22,803,000 | $ | 12,158,000 | $ | 61,083,000 | $ | 516,255,000 | $ | 626,628,000 | $ | 530,243,000 | |||||||||||||||
Weighted average interest rate on maturing fixed-rate debt | 3.71 | % | 3.72 | % | 4.84 | % | 3.67 | % | 4.15 | % | 3.64 | % | 3.73 | % | — | ||||||||||||||||
Variable-rate debt — principal payments | $ | 15,000 | $ | 683,078,000 | $ | 60,046,000 | $ | 40,284,000 | $ | — | $ | — | $ | 783,423,000 | $ | 785,098,000 | |||||||||||||||
Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of September 30, 2018) | 6.60 | % | 4.57 | % | 5.70 | % | 4.79 | % | — | % | — | % | 4.66 | % | — |
Nine Months Ended September 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Distributions paid in cash | $ | 44,702,000 | $ | 41,526,000 | |||||||||
Distributions reinvested | 45,444,000 | 47,453,000 | |||||||||||
$ | 90,146,000 | $ | 88,979,000 | ||||||||||
Sources of distributions: | |||||||||||||
Cash flows from operations | $ | 76,297,000 | 84.6 | % | $ | 88,540,000 | 99.5 | % | |||||
Proceeds from borrowings | 13,849,000 | 15.4 | 439,000 | 0.5 | |||||||||
$ | 90,146,000 | 100 | % | $ | 88,979,000 | 100 | % |
Nine Months Ended September 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Distributions paid in cash | $ | 44,702,000 | $ | 41,526,000 | |||||||||
Distributions reinvested | 45,444,000 | 47,453,000 | |||||||||||
$ | 90,146,000 | $ | 88,979,000 | ||||||||||
Sources of distributions: | |||||||||||||
FFO attributable to controlling interest | $ | 74,015,000 | 82.1 | % | $ | 78,175,000 | 87.9 | % | |||||
Proceeds from borrowings | 16,131,000 | 17.9 | 10,804,000 | 12.1 | |||||||||
$ | 90,146,000 | 100 | % | $ | 88,979,000 | 100 | % |
• | a stockholder would be able to resell his or her shares at our updated estimated per share NAV; |
• | a stockholder would ultimately realize distributions per share equal to our updated estimated per share NAV upon liquidation of our assets and settlement of our liabilities or a sale of the company; |
• | our shares of common stock would trade at our updated estimated per share NAV on a national securities exchange; |
• | an independent third-party appraiser or other third-party valuation firm, other than the third-party valuation firm engaged by the board to assist in its determination of the updated estimated per share NAV, would agree with our estimated per share NAV; or |
• | the methodology used to estimate our updated per share NAV would be acceptable to FINRA or comply with the Employee Retirement Income Security Act of 1974, or ERISA, reporting requirements. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased As Part of Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 1, 2018 to July 31, 2018 | — | $ | — | — | (1 | ) | |||||||
August 1, 2018 to August 31, 2018 | — | $ | — | — | (1 | ) | |||||||
September 1, 2018 to September 30, 2018 | 2,000,654 | $ | 9.23 | 2,000,654 | (1 | ) | |||||||
Total | 2,000,654 | $ | 9.23 | 2,000,654 |
(1) | Subject to funds being available, we will limit the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year; provided however, shares of our common stock subject to a repurchase requested upon the death of a stockholder will not be subject to this cap. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed herewith. |
** | Furnished herewith. In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
Griffin-American Healthcare REIT III, Inc. (Registrant) | ||||||
November 14, 2018 | By: | /s/ JEFFREY T. HANSON | ||||
Date | Jeffrey T. Hanson | |||||
Chief Executive Officer and Chairman of the Board of Directors | ||||||
(Principal Executive Officer) | ||||||
November 14, 2018 | By: | /s/ BRIAN S. PEAY | ||||
Date | Brian S. Peay | |||||
Chief Financial Officer | ||||||
(Principal Financial Officer and Principal Accounting Officer) |
TABLE OF CONTENTS | ||||
Page | ||||
ARTICLE ONE DEFINITIONS AND INTERPRETATION | 2 | |||
ARTICLE TWO ORGANIZATION | 2 | |||
2.01 | Formation and Continuation | 2 | ||
2.02 | Name | 2 | ||
2.03 | Place of Business; Registered Office | 2 | ||
2.04 | Purpose; Powers | 3 | ||
2.05 | Structure | 3 | ||
2.06 | Term | 3 | ||
2.07 | Qualification in Other Jurisdictions | 3 | ||
2.08 | No State-Law Partnership; Tax Treatment | 3 | ||
2.09 | REIT Status | 4 | ||
ARTICLE THREE MEMBERS AND CAPITAL | 5 | |||
3.01 | Members | 5 | ||
3.02 | Capital Contributions | 6 | ||
3.03 | Additional Capital Contributions – Mandatory Contributions | 6 | ||
3.04 | Additional Capital Contributions – Discretionary Contributions | 8 | ||
3.05 | Fair Market Value Determination | 9 | ||
3.06 | Right to Assign Additional Capital Contribution Obligation/Right | 10 | ||
3.07 | Liability of Members | 10 | ||
3.08 | Member Loans | 10 | ||
3.09 | Withdrawal | 10 | ||
3.10 | No Right of Partition | 11 | ||
3.11 | Title to Assets | 11 | ||
ARTICLE FOUR DISTRIBUTIONS | 11 | |||
4.01 | Timing of Distributions | 11 | ||
4.02 | Distributions of Available Cash | 11 | ||
4.03 | Limitation on Distributions | 11 | ||
ARTICLE FIVE MANAGEMENT OF THE COMPANY | 11 | |||
5.01 | Generally | 11 | ||
5.02 | Major Decisions/Deadlock | 13 | ||
5.03 | Officers and Directors | 14 | ||
5.04 | Liability for Certain Acts and Indemnification | 16 | ||
5.05 | Manager, Member and Affiliate Compensation | 17 | ||
5.06 | Business Plan | 17 | ||
5.07 | Resignation/Removal of the Manager | 17 | ||
ARTICLE SIX TRANSFER OF MEMBERSHIP INTERESTS | 20 | |||
6.01 | Transfers | 20 | ||
6.02 | Additional Restrictions on Transfers | 22 | ||
6.03 | Admission and Withdrawals | 23 |
6.04 | Enforcement | 23 | ||
6.05 | Transfers During a Fiscal Year | 24 | ||
6.06 | Right of First Offer | 24 | ||
6.07 | Drag-Along Right | 26 | ||
6.08 | Tag-Along Right | 28 | ||
6.09 | Initial Public Offering | 29 | ||
ARTICLE SEVEN INVESTMENT REPRESENTATIONS | 29 | |||
7.01 | Investment Intent | 29 | ||
7.02 | Business Experience | 29 | ||
7.03 | No Registration of Units | 30 | ||
7.04 | Restricted Securities | 30 | ||
7.05 | No Obligations to Register | 30 | ||
7.06 | No Disposition in Violation of Law | 30 | ||
7.07 | Investment Risk | 30 | ||
7.08 | Restrictions on Transferability | 30 | ||
7.09 | Information Reviewed | 30 | ||
7.10 | No Advertising | 30 | ||
7.11 | “Accredited Investor” Qualification | 31 | ||
ARTICLE EIGHT DISSOLUTION AND LIQUIDATION OF THE COMPANY | 31 | |||
8.01 | Dissolution | 31 | ||
8.02 | Liquidation | 32 | ||
ARTICLE NINE AMENDMENTS | 33 | |||
9.01 | Amendments | 33 | ||
ARTICLE TEN FINANCIAL, REPORTING AND TAX MATTERS | 33 | |||
10.01 | Records and Accounting | 33 | ||
10.02 | Annual Reports | 34 | ||
10.03 | Management Agreement | 34 | ||
10.04 | Tax Information | 34 | ||
10.05 | Tax Matters Member | 34 | ||
10.06 | Capital Accounts, Allocations and Elections | 35 | ||
10.07 | Tax Advances | 35 | ||
ARTICLE ELEVEN CONFIDENTIALITY | 36 | |||
11.01 | Disclosure of Confidential Information | 36 | ||
11.02 | Certain Exceptions | 36 | ||
11.03 | Permitted Disclosure to Representatives | 36 | ||
11.04 | Disclosure to Non-Representatives | 36 | ||
11.05 | Remedies | 36 | ||
ARTICLE TWELVE MISCELLANEOUS | 37 | |||
12.01 | Notices | 37 | ||
12.02 | Governing Law | 37 | ||
12.03 | Arbitration | 37 |
12.04 | Entire Agreement | 38 | ||
12.05 | Headings | 38 | ||
12.06 | Binding Provisions | 38 | ||
12.07 | No Waiver | 38 | ||
12.08 | Counterparts | 38 | ||
12.09 | Costs | 38 | ||
12.10 | No Third Party Rights | 38 | ||
12.11 | Severability | 38 | ||
ARTICLE THIRTENN FORCED SALE PROVISION | 39 | |||
13.01 | Forced Sale Triggers | 39 | ||
13.02 | Forced Sale Election | 39 | ||
13.03 | Marketing of the Company | 40 | ||
13.04 | Closing | 40 | ||
ARTICLE FOURTEEN BUY/SELL PROVISIONS | 41 | |||
14.01 | Exercise of Buy/Sell Rights | 41 | ||
14.02 | Terms of Buy/Sell | 42 | ||
14.03 | Termination of Obligations | 43 | ||
14.04 | Escrow and Closing of Buy/Sell | 43 | ||
14.05 | Default | 44 | ||
14.06 | Release of Seller | 45 |
By: | /s/ Mathieu Streiff |
Name: | Mathieu Streiff |
Title: | Executive Vice President and General Counsel |
By: | /s/ Robert C. Gatenio |
Name: | Robert C. Gatenio |
Title: |
By: | /s/ Danny Prosky |
Name: | Danny Prosky |
Title: | President and Chief Operating Officer |
Name | Address | Capital Contributions | Units | Percentage Interests |
GAHC3 Trilogy JV, LLC | c/o Griffin-American REIT III Holdings, LP 18191 Von Karman Avenue Suite 300 Irvine, CA 92612 Attn : Mathieu Streiff (Tel) (949) 270-9203 (Email) mstreiff@ahinvestors.com | $544,344,047.90 | 544,344 | 70% |
Trilogy Holdings NT-HCI, LLC | c/o Colony Capital, Inc. 590 Madison Avenue New York, NY 10222 Attn : Robert Gatenio And Legal Department (Tel) (212) 547-2600 (Email): gatenio@clny.com legal@clny.com | $186,632,244.99 | 186,632 | 24% |
GAHC4 Trilogy JV, LLC | c/o Griffin-American REIT IV Holdings, LP 18191 Von Karman Avenue Suite 300 Irvine, CA 92612 Attn : Mathieu Streiff (Tel) (949) 270-9203 (Email) mstreiff@ahinvestors.com | $48,000,000 | 46,658 | 6% |
2016 | 2017 | 2018 | Total | |||||||||
On-Balance Sheet Developments | ||||||||||||
Number of Openings | 1 | 2 | 8 | 11 | ||||||||
Cost | $22.7 | $26.2 | $39.7 | $88.5 | ||||||||
FF&E Cost | 2.0 | 3.4 | 10.8 | $16.2 | ||||||||
Third Party Financing | 15.9 | 18.3 | 27.8 | 62.0 | ||||||||
Equity Requirement | 6.8 | 7.9 | 11.9 | 26.6 | ||||||||
Off-Balance Sheet Developments | ||||||||||||
Number of Openings | 6 | 3 | - | 9 | ||||||||
FF&E Cost | $10.6 | 5.1 | - | $15.7 | ||||||||
Equity Requirement | - | - | - | - |
2016 | 2017 | 2018 | Total | |||||
Property Expansions | ||||||||
Number of Openings | 2 | - | - | 2 | ||||
Cost | - | - | - | - | ||||
FF&E Cost | $0.4 | - | - | $0.4 | ||||
Third Party Financing | - | - | - | - | ||||
Equity Requirement | - | - | - | - | ||||
IL Expansions | ||||||||
Number of Openings | 8 | 3 | - | 11 | ||||
Cost | $7.1 | - | - | $7.1 | ||||
FF&E Cost | 2.1 | - | - | 2.1 | ||||
Third Party Financing | 5.0 | - | - | 5.0 | ||||
Equity Requirement | 2.1 | - | - | 2.1 | ||||
2016 | 2017 | 2018 | Total | |||||||||
Purchase Options | ||||||||||||
Number of Properties | 8 | 5 | 6 | 19 | ||||||||
Purchase Option Cost | $78.5 | $52.7 | $76.5 | $207.7 | ||||||||
Third Party Financing | 78.5 | 52.7 | 76.5 | 207.7 | ||||||||
Equity Requirement | - | - | - | - |
2016 | 2017 | 2018 | Total | |||||||
Equity Requirements | ||||||||||
On-Balance Sheet Developments | 6.8 | 7.9 | 11.9 | 26.6 | ||||||
Off-Balance Sheet Developments | - | - | - | - | ||||||
Property Expansions | - | - | - | - | ||||||
IL Expansions | 2.1 | - | - | 2.1 | ||||||
Purchase Options | - | - | - | - | ||||||
Total | 8.9 | 7.9 | 11.9 | 28.7 | ||||||
Debt Financing | ||||||||||
On-Balance Sheet Developments | $15.9 | $18.3 | $27.8 | 62.0 | ||||||
Off-Balance Sheet Developments | - | - | - | - | ||||||
Property Expansions | - | - | - | - | ||||||
IL Expansions | 5.0 | - | - | 5.0 | ||||||
Purchase Options | 78.5 | 52.7 | 76.5 | 207.7 | ||||||
FF&E / Working Capital / Other Debt | 26.9 | 8.9 | - | 35.7 | ||||||
Total | 126.2 | 79.9 | 104.3 | 310.4 |
a. | extend the Term in accordance with Section 2 of the Management Agreement; |
b. | consent to change or alter the Applicable Use of the campus facilities existing as of the date hereof pursuant to Section 3.18 of the Management Agreement that would result in a change of more than 5% in the relative percentages of skilled nursing, assisted living, memory care and independent living units of such facilities in the aggregate over any three year period (and excluding any potential future expansion developments of such facilities); |
c. | consent to the execution or material modification of any new agreement (including any renewal of an existing agreement unless on substantially similar terms) requiring OpCo consent under Section 3.9.3 of the Management Agreement if (i) such agreement is entered into outside of the ordinary course of business and the payments under such agreement (and any related agreements) are in excess of Five Million Dollars ($5,000,000) (5-Year CPI Adjusted) in the aggregate in any Fiscal Year (and not otherwise related to a campus development permitted in accordance with the Approved Business Plan); or (ii) such agreement is in the nature of a collective bargaining or labor agreement; |
d. | increase the aggregate Management Fees by more than $1,500,000 more than the base management fee set forth in the Agreement; |
e. | determine to waive, or elect not to pursue any rights or remedies, upon notice of any Event of Default under the Management Agreement; |
f. | any election not to terminate the Manager or pursue any remedial measures in accordance with Section 14.4 of the Management Agreement; and |
g. | exercise any rights under Section 16.4 (Key Principals) of Management Agreement. |
a. | approve any of the following that would cause, individually or in the aggregate, the budgeted net operating income for such portfolio of properties to decrease by 5% or more from the previous year's actual results: (i) a decrease the aggregate budgeted occupancy rate for such properties by more than 3%; (ii) a reduction in the aggregate budgeted average daily rates for assisted living or independent living units by more than 4%; (iii) a decrease in Payor Mix by more than 5% or (iv) an increase aggregate budgeted labor expenses by more than 10%; or |
b. | cause or permit total capital expenditures for such properties to increase by more than 20% from the amounts contemplated in the Approved Business |
REPORTING REQUIREMENTS | |||||||
Reporting Entity | |||||||
Item # | Requirement | Format | Due to NS | Consolidated | Lower Tier Entity (1) | Distribution | Comments |
1 | Income Statement and Balance Sheet | Excel | 15 business days after month end | Monthly | Upon Request | #All | To include computation of management fee. US GAAP basis |
2 | Trial Balance with Financial Statement Mapping | Excel | 15 business days after month end | Monthly | Upon Request | # Accounting | US GAAP basis |
3 | General Ledger | Excel | 15 business days after month end | Upon Request | Upon Request | # Accounting | |
4 | Bank Statements and Reconciliations | PDF | 15 business days after month end | Upon Request | Upon Request | # Accounting | |
5 | Other Balance Sheet Account Reconciliations | Excel/PDF | 15 business days after month end | Upon Request | Upon Request | # Accounting | Balance sheet reconciliations in support of TB to be provided on a quarterly basis upon request |
6 | Aged Receivable Report | Excel/PDF | 15 business days after month end | NA | Upon Request | # Accounting | Monthly or quarterly format upon request |
7 | Aged Payable Report | Excel/PDF | 15 business days after month end | Upon Request | Upon Request | # Accounting | Monthly or quarterly format upon request |
8 | Allowance for Doubtful Accounts | PDF | 15 business days after month end | NA | Upon Request | # Accounting | Quarterly upon request |
9 | Supporting Schedules | Excel | 15 business days after month end | Upon Request | Upon Request | # Accounting | For example, depreciation/amortization, s/l rent, deferred costs, prepaid expenses, below/above market leases, capital expenditure spend-down and any other supporting schedules that may be reasonably required from time-to-time |
10 | Rent Roll or Rent Roll Equivalent Report | PDF | 15 business days after month end | NA | Upon Request | # Accounting | To include room and care charges by unit and by resident. Also to include anniversary dates for contracted rate increases. |
11 | Loan Statements | PDF | 15 business days after month end or when available | NA | Upon Request | # Accounting | Within 15 business day or as soon as available from the lender |
12 | Loan Covenant Tests | Excel/PDF | 30 calendar days before month end | NA | Monthly | #All | Quarterly |
13 | Loan Compliance Package | PDF | Once Certified | NA | Quarterly | #All | |
14 | JV Equity Accounts Rollforward | Excel | 20 business days after month end | Quarterly | NA | #All | |
15 | Distribution Analysis and Capital Call analysis | Excel/PDF | 15 business days after month end | Quarterly | NA | #All | Or more often, if applicable |
16 | Income Statement and Balance Sheet | Excel | 15 business days after month end | Quarterly | Upon Request | #All | QTD income statement and balance sheet and trial balance in format consistent with monthly plus capital expenditures. |
17 | Officers Certificate | PDF | 15 business days after month end | NA | Quarterly | #All | Certificate from the EIK, substantially in the form provided. Certificate of Manager certifying that (i) it is not aware of any defaults under this Agreement, (ii) it has delivered all documents required to be delivered under this Agreement and (iii) to the best of such officer's knowledge (which includes reasonable reliance upon any information and/or certification delivered by the EIK under the Management Agreement), the financial statements delivered herewith (a) fairly present the financial condition and operating performance of the Company and its Subsidiaries on a consolidated basis as of the dates of such financial statements in all material respects and (b) have been prepared in accordance with U.S. generally accepted accounting |
18 | Quarterly Budget to Actual Analytics | Excel | 20 business days after month end | Quarterly | Upon Request | #All | Presented on a quarterly basis & with comments including capital expenditure actual vs. budget (on a standalone or consolidated property basis) |
19 | Quarterly Quarter over Quarter and Year over Year Actual Analytics | Excel | 20 business days after month end | Quarterly | Upon Request | #All | Presented on a quarterly basis & with comments including capital expenditure, payor mix, if available, and occupancy information |
20 | Income Statement and Balance Sheet | Excel | 15 business days after month end | Annually | Upon Request | #All | YTD income statement and balance sheet and trial balance in format consistent with monthly. |
21 | Final unaudited YE Financials | Excel | 45 days after FY end | Annually | Upon Request | #All | |
22 | Audited Final YE Financials | PDF | 75 days after FY end (or such short time if required by lender) | Annually | Upon Request | #All | Navigator REIT level |
23 | Capital and Operating Budgets | Excel | 60 days prior to FY end | NA | Annually | #All | per agreement with EIK |
24 | K-1 | PDF | 15-Jul | Annually | NA | # Accounting | |
25 | REIT Tests | Excel | See comments | Quarterly | NA | # Accounting | 25 days after quarter end and 30 days after year end |
26 | Additional reasonable requests at our discretion | Excel/PDF | As Requested | Upon Request | Upon Request | #All | e.g. tax/insurance and other property invoices, supporting schedules etc. |
Distribution List #All | Email | Phone |
# Accounting (NYC/Lux) | ||
1. Frank V Saracino | fsaracino@nsamgroup.com | 212.287.2119 |
2. Matt Brandwein | mbrandwein@nsamgroup.com | 212.547.2675 |
3. Elijah Kanevskiy | ekanevskiy@nsamgroup.eu | 352.269.466.457 |
4. TBD | ||
# Asset Management (Bethesda) | ||
1. Jason Simmers | jsimmers@nsamgroup.com | 240.479.7128 |
2. Stephanie Tapiero | stapiero@nsamgroup.com | 240.479.7132 |
3. Lauren O'Neil | loneil@nsamgroup.com | 240.479.7124 |
November 14, 2018 | By: | /s/ JEFFREY T. HANSON | ||
Date | Jeffrey T. Hanson | |||
Chief Executive Officer and Chairman of the Board of Directors | ||||
(Principal Executive Officer) |
November 14, 2018 | By: | /s/ BRIAN S. PEAY | ||
Date | Brian S. Peay | |||
Chief Financial Officer | ||||
(Principal Financial Officer and Principal Accounting Officer) |
November 14, 2018 | By: | /s/ JEFFREY T. HANSON | ||
Date | Jeffrey T. Hanson | |||
Chief Executive Officer and Chairman of the Board of Directors | ||||
(Principal Executive Officer) |
November 14, 2018 | By: | /s/ BRIAN S. PEAY | ||
Date | Brian S. Peay | |||
Chief Financial Officer | ||||
(Principal Financial Officer and Principal Accounting Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 09, 2018 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | gahr3 | |
Entity Registrant Name | Griffin-American Healthcare REIT III, Inc. | |
Entity Central Index Key | 0001566912 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 199,553,183 |
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
ASSETS | |||||
Real estate investments, net | $ 2,210,766 | $ 2,163,258 | |||
Real estate notes receivable and debt security investment, net | 99,813 | 97,988 | |||
Cash and cash equivalents | 34,925 | 33,656 | |||
Accounts and other receivables, net | 121,181 | 117,188 | |||
Restricted Cash | 36,369 | 30,487 | |||
Real estate deposits | 2,904 | 3,261 | |||
Identified intangible assets, net | 180,317 | 180,308 | |||
Goodwill | 75,309 | 75,309 | |||
Other assets, net | 110,970 | 99,020 | |||
Total assets | 2,872,554 | 2,800,475 | |||
Liabilities: | |||||
Mortgage loans payable, net | [1] | 686,954 | 613,558 | ||
Lines of credit and term loans | [1] | 698,073 | 624,125 | ||
Accounts payable and accrued liabilities | [1] | 136,821 | 124,503 | ||
Accounts payable due to affiliates | [1] | 1,994 | 2,057 | ||
Identified intangible liabilities, net | 1,192 | 1,568 | |||
Capital lease obligations | [1] | 16,057 | 16,193 | ||
Security deposits, prepaid rent and other liabilities | [1] | 37,597 | 39,461 | ||
Total liabilities | 1,578,688 | 1,421,465 | |||
Commitments and contingencies (Note 11) | |||||
Redeemable noncontrolling interests (Note 12) | 33,397 | 32,435 | |||
Stockholders’ equity: | |||||
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding | 0 | 0 | |||
Common stock, $0.01 par value per share; 1,000,000,000 shares authorized; 198,503,045 and 199,343,234 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 1,985 | 1,993 | |||
Additional paid-in capital | 1,778,084 | 1,785,872 | |||
Accumulated deficit | (676,166) | (598,044) | |||
Accumulated other comprehensive loss | (2,345) | (1,971) | |||
Total stockholders’ equity | 1,101,558 | 1,187,850 | |||
Noncontrolling interests (Note 13) | 158,911 | 158,725 | |||
Total equity | 1,260,469 | 1,346,575 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ 2,872,554 | $ 2,800,475 | |||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Lines of credit and term loans | [1] | $ 698,073 | $ 624,125 | |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares, issued | 198,503,045 | 199,343,234 | ||
Common stock, shares outstanding | 198,503,045 | 199,343,234 | ||
2016 Corporate Line Of Credit [Member] | Line of Credit [Member] | ||||
Lines of credit and term loans | $ 523,500 | $ 444,000 | ||
|
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||
Net income (loss) attributable to redeemable noncontrolling interests | $ 131 | $ (613) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 12,931,000 | $ (1,543,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 70,190,000 | 88,442,000 |
Other amortization (including deferred financing costs, above/below-market leases, leasehold interests, debt discount/premium, real estate notes receivable loan costs and debt security investment accretion and closing costs) | 3,871,000 | 4,056,000 |
Deferred rent | (4,650,000) | (3,913,000) |
Stock based compensation | 585,000 | 390,000 |
Stock based compensation — nonvested restricted common stock | 171,000 | 171,000 |
Loss from unconsolidated entity | 3,672,000 | 3,668,000 |
Bad debt expense, net | 331,000 | 5,220,000 |
Gain on real estate dispositions | 0 | (3,370,000) |
Foreign currency loss (gain) | 1,619,000 | (3,678,000) |
Loss on extinguishment of mortgage loan payable | 0 | 1,432,000 |
Change in fair value of contingent consideration | (1,609,000) | (57,000) |
Change in fair value of derivative financial instruments | 1,127,000 | (44,000) |
Impairment of real estate investments | 2,542,000 | 4,883,000 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (5,325,000) | (9,979,000) |
Other assets | (12,072,000) | (6,501,000) |
Accounts payable and accrued liabilities | 3,390,000 | 8,832,000 |
Accounts payable due to affiliates | 13,000 | (79,000) |
Security deposits, prepaid rent and other liabilities | (489,000) | 610,000 |
Net cash provided by operating activities | 76,297,000 | 88,540,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisitions of real estate investments | (63,984,000) | (102,241,000) |
Proceeds from real estate dispositions | 1,000,000 | 15,993,000 |
Principal repayments on real estate notes receivable | 0 | 26,752,000 |
Investment in unconsolidated entity | (2,000,000) | (1,250,000) |
Capital expenditures | (41,753,000) | (25,804,000) |
Real estate and other deposits | (2,815,000) | (876,000) |
Proceeds from insurance settlements | 0 | 85,000 |
Net cash used in investing activities | (109,552,000) | (87,341,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings under mortgage loans payable | 177,637,000 | 230,452,000 |
Payments on mortgage loans payable | (7,539,000) | (6,110,000) |
Settlements of mortgage loans payable | (94,449,000) | (100,775,000) |
Borrowings under the lines of credit and term loans | 206,664,000 | 269,473,000 |
Payments on the lines of credit and term loans | (132,716,000) | (325,756,000) |
Deferred financing costs | (4,130,000) | (5,485,000) |
Mortgage loan payable extinguishment costs | 0 | (493,000) |
Other obligations | (1,000,000) | 9,487,000 |
Repurchase of common stock | (53,027,000) | (24,022,000) |
Repurchase of stock warrants and redeemable noncontrolling interests | (306,000) | (204,000) |
Payments under capital leases | (5,329,000) | (4,995,000) |
Contributions from noncontrolling interest | 4,470,000 | 8,304,000 |
Distributions to noncontrolling interests | (5,243,000) | (460,000) |
Contributions from redeemable noncontrolling interests | 535,000 | 975,000 |
Distributions to redeemable noncontrolling interests | (497,000) | (384,000) |
Security deposits | 97,000 | 131,000 |
Payment of offering costs | (6,000) | (10,000) |
Distributions paid | (44,702,000) | (41,526,000) |
Net cash provided by financing activities | 40,459,000 | 8,602,000 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 7,204,000 | 9,801,000 |
EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (53,000) | 132,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 64,143,000 | 55,677,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | 71,294,000 | 65,610,000 |
Cash and cash equivalents at beginning of period | 33,656,000 | 29,123,000 |
Restricted cash at beginning of period | 30,487,000 | 26,554,000 |
Cash and cash equivalents at end of period | 34,925,000 | 35,876,000 |
Restricted cash at end of period | 36,369,000 | 29,734,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for: Interest (including interest on capital leases) | 43,016,000 | 46,117,000 |
Cash paid for: Income taxes | 764,000 | 432,000 |
Investing Activities: | ||
Accrued capital expenditures | 15,162,000 | 6,163,000 |
Capital expenditures from capital leases | 5,194,000 | 5,039,000 |
Settlement of receivable for investment in unconsolidated entity | 0 | 1,000,000 |
Tenant improvement overage | 1,014,000 | 257,000 |
Exercise purchase options — attributable to intangible asset | 0 | 11,454,000 |
Disposition of real estate investment | 0 | 2,400,000 |
Reduction of capital lease obligations, net | 0 | 27,483,000 |
The following represents the increase (decrease) in certain assets and liabilities in connection with our acquisitions and dispositions of real estate investments: | ||
Other receivables | 0 | 3,155,000 |
Other assets, net | (1,587,000) | 1,972,000 |
Accounts payable and accrued liabilities | 47,000 | 1,967,000 |
Prepaid rent and other liabilities | 223,000 | 2,257,000 |
Financing Activities: | ||
Issuance of common stock under the DRIP | 45,444,000 | 47,453,000 |
Distributions declared but not paid | 9,875,000 | 9,830,000 |
Payable to transfer agent | 72,000 | 0 |
Reclassification of noncontrolling interests to mezzanine equity | 585,000 | 585,000 |
Accrued deferred financing costs | 0 | 87,000 |
Settlement of mortgage loan payable | $ 0 | $ 2,040,000 |
Organization and Description of Business |
9 Months Ended |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Griffin-American Healthcare REIT III, Inc., a Maryland corporation, was incorporated on January 11, 2013 and therefore, we consider that our date of inception. We were initially capitalized on January 15, 2013. We invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. We also operate healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a “RIDEA” structure (the provisions of the Internal Revenue Code of 1986, as amended, or the Code, authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We also originate and acquire secured loans and real estate-related investments on an infrequent and opportunistic basis. We generally seek investments that produce current income. We qualified to be taxed as a real estate investment trust, or REIT, under the Code for federal income tax purposes beginning with our taxable year ended December 31, 2014, and we intend to continue to qualify to be taxed as a REIT. On February 26, 2014, we commenced a best efforts initial public offering, or our initial offering, in which we offered to the public up to $1,900,000,000 in shares of our common stock. As of April 22, 2015, the deregistration date of our initial offering, we had received and accepted subscriptions in our initial offering for 184,930,598 shares of our common stock, or $1,842,618,000, excluding shares of our common stock issued pursuant to our distribution reinvestment plan, or the DRIP. As of April 22, 2015, a total of $18,511,000 in distributions were reinvested that resulted in 1,948,563 shares of our common stock being issued pursuant to the DRIP portion of our initial offering. On March 25, 2015, we filed a Registration Statement on Form S-3 under the Securities Act of 1933, as amended, or the Securities Act, to register a maximum of $250,000,000 of additional shares of our common stock pursuant to the DRIP, or the Secondary DRIP Offering. The Registration Statement on Form S-3 was automatically effective with the United States Securities and Exchange Commission, or SEC, upon its filing; however, we did not commence offering shares pursuant to the Secondary DRIP Offering until April 22, 2015, following the deregistration of our initial offering. Effective October 5, 2016, we amended and restated the DRIP, or the Amended and Restated DRIP, to amend the price at which shares of our common stock are issued pursuant to the Secondary DRIP Offering. See Note 13, Equity — Distribution Reinvestment Plan, for a further discussion. As of September 30, 2018, a total of $216,614,000 in distributions were reinvested and 23,309,252 shares of our common stock were issued pursuant to the Secondary DRIP Offering. We conduct substantially all of our operations through Griffin-American Healthcare REIT III Holdings, LP, or our operating partnership. We are externally advised by Griffin-American Healthcare REIT III Advisor, LLC, or Griffin-American Advisor, or our advisor, pursuant to an advisory agreement, or the Advisory Agreement, between us and our advisor. The Advisory Agreement was effective as of February 26, 2014 and had a one-year term, subject to successive one-year renewals upon the mutual consent of the parties. The Advisory Agreement was last renewed pursuant to the mutual consent of the parties on February 14, 2018 and expires on February 26, 2019. Our advisor uses its best efforts, subject to the oversight, review and approval of our board of directors, or our board, to, among other things, research, identify, review and make investments in and dispositions of properties and securities on our behalf consistent with our investment policies and objectives. Our advisor performs its duties and responsibilities under the Advisory Agreement as our fiduciary. Our advisor is 75.0% owned and managed by American Healthcare Investors, LLC, or American Healthcare Investors, and 25.0% owned by a wholly owned subsidiary of Griffin Capital Company, LLC, or Griffin Capital, or collectively, our co-sponsors. American Healthcare Investors is 47.1% owned by AHI Group Holdings, LLC, or AHI Group Holdings, 45.1% indirectly owned by Colony Capital, Inc. (NYSE: CLNY), or Colony Capital, and 7.8% owned by James F. Flaherty III, a former partner of Colony Capital. We are not affiliated with Griffin Capital, Griffin Capital Securities, LLC, the dealer manager for our initial offering, or our dealer manager, Colony Capital or Mr. Flaherty; however, we are affiliated with Griffin-American Advisor, American Healthcare Investors and AHI Group Holdings. We currently operate through six reportable business segments: medical office buildings, hospitals, skilled nursing facilities, senior housing, senior housing — RIDEA and integrated senior health campuses. As of September 30, 2018, we owned and/or operated 97 properties, comprising 101 buildings, and 111 integrated senior health campuses including completed development projects, or approximately 13,132,000 square feet of gross leasable area, or GLA, for an aggregate contract purchase price of $2,933,369,000. In addition, as of September 30, 2018, we had invested $90,878,000 in real estate-related investments, net of principal repayments. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding our accompanying condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States, or GAAP, in all material respects, and have been consistently applied in preparing our accompanying condensed consolidated financial statements. Basis of Presentation Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership, the wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries in which we have control, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810. We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries of which we have control, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership, and as of September 30, 2018 and December 31, 2017, we owned greater than a 99.99% general partnership interest therein. As of September 30, 2018 and December 31, 2017, our advisor owned less than a 0.01% limited partnership interest in our operating partnership. Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our accompanying condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation. Interim Unaudited Financial Data Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 16, 2018. Use of Estimates The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. Revenue Recognition Resident fees and services Prior to January 1, 2018, we recognized resident fees and services revenue in accordance with ASC Topic 605, Revenue Recognition, or ASC Topic 605. ASC Topic 605 requires that all four of the following basic criteria be met before revenue is realized or realizable and earned: (i) there is persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the seller’s price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. On January 1, 2018, we adopted ASC Topic 606, Revenue from Contracts with Customers, or ASC Topic 606, applying the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The adoption of ASC Topic 606 did not have a material impact on the measurement nor on the recognition of resident fees and services revenue as of January 1, 2018; therefore, no cumulative adjustment has been made to the opening balance of retained earnings at the beginning of 2018. A significant portion of resident fees and services revenue represents healthcare service revenue that is reported at the amount that reflects the consideration to which we expect to be entitled in exchange for providing patient care. These amounts are due from patients, third-party payors (including health insurers and government programs), other healthcare facilities, and others and includes variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations. Generally, we bill the patients, third-party payors and other healthcare facilities several days after the services are performed. Revenue is recognized as performance obligations are satisfied. Performance obligations are determined based on the nature of the services provided by us. Revenue for performance obligations satisfied over time is recognized based on actual charges incurred in relation to total expected (or actual) charges. This method provides a depiction of the transfer of services over the term of the performance obligation based on the inputs needed to satisfy the obligation. Generally, performance obligations satisfied over time relate to patients in our integrated senior health campuses receiving long-term healthcare services, including rehabilitation services. We measure the performance obligation from admission into the integrated senior health campus to the point when we are no longer required to provide services to that patient. Revenue for performance obligations satisfied at a point in time is recognized when goods or services are provided and we do not believe it is required to provide additional goods or services to the patient. Generally, performance obligations satisfied at a point in time relate to sales of our pharmaceuticals business or to sales of ancillary supplies. Because all of its performance obligations relate to contracts with a duration of less than one year, we have elected to apply the optional exemption provided in FASB ASC 606-10-50-14(a) and, therefore, are not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The performance obligations for these contracts are generally completed within months of the end of the reporting period. We determine the transaction price based on standard charges for goods and services provided, reduced, where applicable, by contractual adjustments provided to third-party payors, implicit price concessions provided to uninsured patients, and estimates of goods to be returned. We also determine the estimates of contractual adjustments based on Medicare and Medicaid pricing tables and historical experience. We determine the estimate of implicit price concessions based on the historical collection experience with each class of payor. Agreements with third-party payors typically provide for payments at amounts less than established charges. A summary of the payment arrangements with major third-party payors follows:
Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. As a result of investigations by governmental agencies, various healthcare organizations have received requests for information and notices regarding alleged noncompliance with those laws and regulations, which, in some instances, have resulted in organizations entering into significant settlement agreements. Compliance with such laws and regulations may also be subject to future government review and interpretation as well as significant regulatory action, including fines, penalties and potential exclusion from the related programs. There can be no assurance that regulatory authorities will not challenge our compliance with these laws and regulations, and it is not possible to determine the impact (if any) such claims or penalties would have upon us. Settlements with third-party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. These settlements are estimated based on the terms of the payment agreement with the payor, correspondence from the payor and our historical settlement activity, including an assessment to ensure that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the retroactive adjustment is subsequently resolved. Estimated settlements are adjusted in future periods as adjustments become known (that is, new information becomes available), or as years are settled or are no longer subject to such audits, reviews and investigations. Adjustments arising from a change in the transaction price were not significant for the three and nine months ended September 30, 2018. In accordance with the disclosure requirements of the new revenue standard, the impact of the adoption of ASC Topic 606 on our condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 were as follows:
In accordance with the disclosure requirements of the new revenue standard, the impact of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of September 30, 2018 was as follows:
The change in reported balances is primarily based on the fact that substantially all of the amounts recorded to bad debt expense pursuant to our previous accounting policy in accordance with ASC Topic 605 are now recorded as direct reductions of resident fees and services revenue as contractual adjustments provided to third-party payors or implicit price concessions pursuant to the new revenue standard, ASC Topic 606. Disaggregation of Resident Fees and Services Revenue We disaggregate revenue from contracts with customers according to lines of business and payor classes. The transfer of goods and services may occur at a point in time or over time; in other words, revenue may be recognized over the course of the underlying contract, or may occur at a single point in time based upon a single transfer of control. This distinction is discussed in further detail below. We determine that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table disaggregates our resident fees and services revenue by line of business, according to whether such revenue is recognized at a point in time or over time:
The following table disaggregates our resident fees and services revenue by payor class:
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Accounts Receivable, Net — Resident Fees and Services The beginning and ending balances of accounts receivable, net — resident fees and services are as follows:
Deferred Revenue — Resident Fees and Services The beginning and ending balances of deferred revenue — resident fees and services, all of which relates to private and other payors, are as follows:
All amounts included in the beginning balance of deferred revenue — resident fees and services at January 1, 2018 were recognized as revenue during the nine months ended September 30, 2018. Financing Component We have elected the practical expedient allowed under FASB ASC 606-10-32-18 and, therefore, we do not adjust the promised amount of consideration from patients and third-party payors for the effects of a significant financing component due to our expectation that the period between the time the service is provided to a patient and the time that the patient or a third-party payor pays for that service will be one year or less. Contract Costs We have applied the practical expedient provided by FASB ASC 340-40-25-4 and, therefore, all incremental customer contract acquisition costs are expensed as they are incurred since the amortization period of the asset that we otherwise would have recognized is one year or less in duration. Accounts Payable and Accrued Liabilities As of September 30, 2018 and December 31, 2017, accounts payable and accrued liabilities primarily includes insurance payables of $29,651,000 and $27,208,000, respectively, reimbursement of payroll related costs to the managers of our senior housing — RIDEA facilities and integrated senior health campuses of $25,940,000 and $23,737,000, respectively, accrued property taxes of $16,962,000 and $13,406,000, respectively, accrued capital expenditures to unaffiliated third parties of $15,124,000 and $5,988,000, respectively, and accrued distributions of $9,875,000 and $10,192,000, respectively. Statement of Cash Flows For the nine months ended September 30, 2017, amounts totaling $495,102,000 have been removed from borrowings under the lines of credit and term loans and payments on the lines of credit and term loans compared to amounts previously presented. There was no net change in previously disclosed net cash provided by financing activities. Recently Issued or Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update, or ASU, 2016-02, Leases, or ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606. In addition, ASU 2016-02 provides a practical expedient that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We plan to elect this practical expedient. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, or ASU 2018-10, and ASU 2018-11, Leases (Topic 842) Targeted Improvements, or ASU 2018-11, which update the guidance on accounting for leases under ASU 2016-02. ASU 2018-10 was issued to increase stockholders’ awareness of narrow aspects of the guidance issued in the amendments and to expedite the improvements under ASU 2016-02. ASU 2018-11 provides (a) an alternative transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the modified retrospective transition method prescribed by ASU 2016-02, which requires application of the new leases standard at the beginning of the earliest period presented in the financial statements for comparative purposes; and (b) a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. We plan to elect this practical expedient and transition method. We completed a preliminary assessment of predominance for our medical office buildings, senior housing, skilled nursing facilities and hospitals segments and, effective upon the adoption of ASU 2016-02 (codified under ASC Topic 842), we expect to recognize revenue from these segments under ASC Topic 842. We are still in the process of completing our preliminary assessment related to senior housing — RIDEA. We plan to finalize our assessment for all segments during the fourth quarter of 2018. ASU 2016-02, ASU 2018-10 and ASU 2018-11 are effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. As a result of the adoption of the new leases standard on January 1, 2019, we: (i) will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets; and (ii) may be required to increase our revenue and expense for the amount of real estate taxes and insurance paid by our tenants under triple-net leases; however, we are still evaluating the complete impact of the adoption of the new leases standard and its related expedients, in addition to the transition method, on January 1, 2019 to our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, or ASU 2018-02, which amends the reclassification requirements from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017, or the Tax Act. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2018-02 on January 1, 2019 to have a material impact on our consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, Amendments to the SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, or ASU 2018-05, which updates the income tax accounting in GAAP to reflect the SEC’s interpretive guidance with regards to the Tax Act. We adopted ASU 2018-05 in March 2018, which did not have a material impact on our consolidated financial statements. See Note 16, Income Taxes, for a further discussion. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13, which modifies the disclosure requirements in ASC Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We are currently evaluating this guidance to determine the impact of ASU 2018-13 on our disclosures. |
Real Estate Investments, Net |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments, Net | 3. Real Estate Investments, Net Our real estate investments, net consisted of the following as of September 30, 2018 and December 31, 2017:
Depreciation expense for the three months ended September 30, 2018 and 2017 was $20,636,000 and $20,611,000, respectively. Depreciation expense for the nine months ended September 30, 2018 and 2017 was $61,323,000 and $61,453,000, respectively. No impairment charges were recognized for the three months ended September 30, 2018 and 2017, respectively. For the nine months ended September 30, 2018, we determined that one of our medical office buildings was impaired and recognized an impairment charge of $2,542,000, which reduced the total carrying value of such investment to $7,387,000. The fair value of such medical office building was based upon a discounted cash flow analysis where the most significant inputs were market rents, lease absorption rate, capitalization rate and discount rate, and such inputs were considered Level 3 measurements within the fair value hierarchy. For the nine months ended September 30, 2017, we recognized an aggregate impairment charge of $4,883,000 related to two integrated senior health campuses, which reduced the total carrying value of such investments to $990,000. In July 2017, we disposed of one such integrated senior health campus and, as of September 30, 2017, the fair value of the other integrated senior health campus was based on its projected sales price, which was considered a Level 2 measurement within the fair value hierarchy. For the three months ended September 30, 2018, we incurred capital expenditures of $20,416,000 on our integrated senior health campuses, $2,047,000 on our medical office buildings, $768,000 on our senior housing — RIDEA facilities, and $10,000 on our hospitals. We did not incur any capital expenditures on our senior housing facilities or skilled nursing facilities for the three months ended September 30, 2018. For the nine months ended September 30, 2018, we incurred capital expenditures of $48,282,000 on our integrated senior health campuses, $5,590,000 on our medical office buildings, $1,283,000 on our senior housing — RIDEA facilities, $459,000 on our skilled nursing facilities and $57,000 on our hospitals. We did not incur any capital expenditures on our senior housing facilities for the nine months ended September 30, 2018. Acquisitions of Real Estate Investments 2018 Acquisitions of Real Estate Investments For the nine months ended September 30, 2018, using cash on hand and debt financing, we completed the acquisition of one building from an unaffiliated third party, which we added to our existing North Carolina ALF Portfolio. The other five buildings in North Carolina ALF Portfolio were acquired in January 2015, June 2015 and January 2017. The following is a summary of our property acquisition for the nine months ended September 30, 2018:
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In addition to the property acquisition discussed above, on April 17, 2018, we purchased land as part of our existing Southern Illinois MOB Portfolio for a contract purchase price of $300,000 and paid a 2.25% acquisition fee to our advisor of approximately $7,000, plus closing costs. 2018 Acquisition of Previously Leased Real Estate Investments For the nine months ended September 30, 2018, we, through a majority-owned subsidiary of Trilogy Investors, LLC, or Trilogy, acquired a portfolio of four previously leased real estate investments located in Kentucky, Michigan and Ohio. The following is a summary of such acquisition for the nine months ended September 30, 2018, which is included in our integrated senior health campuses segment:
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For the nine months ended September 30, 2018, we accounted for our property acquisitions, including our acquisition of previously leased real estate investments, as asset acquisitions. We incurred closing costs and direct acquisition related expenses of $2,936,000 for such property acquisitions, which were capitalized in accordance with ASU 2017-01, Clarifying the Definition of a Business, or ASU 2017-01. The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our property acquisitions in 2018 based on their relative fair values:
Completed Developments and/or Expansions in 2018 For the nine months ended September 30, 2018, we incurred $3,834,000 to expand our integrated senior health campuses, which is included in real estate investments, net, in our accompanying condensed consolidated balance sheets. |
Real Estate Notes Receivable and Debt Security Investment, Net |
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Real Estate Notes Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Notes Receivable and Investment, Net | 4. Real Estate Notes Receivable and Debt Security Investment, Net The following is a summary of our notes receivable and debt security investment, including unamortized loan and closing costs, net as of September 30, 2018 and December 31, 2017:
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The following table reflects the changes in the carrying amount of real estate notes receivable and debt security investment, net for the nine months ended September 30, 2018 and 2017:
For the three and nine months ended September 30, 2018 and 2017, we did not record any impairment losses on our real estate notes receivable and debt security investment. Amortization expense of loan and closing costs for the three months ended September 30, 2018 and 2017 was $64,000 and $57,000, respectively, and for the nine months ended September 30, 2018 and 2017, was $185,000 and $164,000, respectively, which was recorded against real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income (loss). |
Identified Intangible Assets, Net |
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Identified Intangible Assets, Net | 5. Identified Intangible Assets, Net Identified intangible assets, net consisted of the following as of September 30, 2018 and December 31, 2017:
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Amortization expense for the three months ended September 30, 2018 and 2017 was $3,227,000 and $7,205,000, respectively, which included $210,000 and $329,000, respectively, of amortization recorded against real estate revenue for above-market leases and $34,000 and $35,000, respectively, of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Amortization expense for the nine months ended September 30, 2018 and 2017 was $9,204,000 and $27,761,000, respectively, which included $766,000 and $1,056,000, respectively, of amortization recorded against real estate revenue for above-market leases and $105,000 and $106,000, respectively, of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The aggregate weighted average remaining life of the identified intangible assets was 15.1 years and 15.5 years as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, estimated amortization expense of the identified intangible assets for the three months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:
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Other Assets, Net |
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Other Assets, Net | 6. Other Assets, Net Other assets, net consisted of the following as of September 30, 2018 and December 31, 2017:
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Amortization expense of lease commissions for the three months ended September 30, 2018 and 2017 was $197,000 and $127,000, respectively, and for the nine months ended September 30, 2018 and 2017 was $534,000 and $306,000, respectively. Amortization expense of lease inducement for both the three months ended September 30, 2018 and 2017 was $88,000 and for both the nine months ended September 30, 2018 and 2017 was $263,000. Amortization expense of lease inducement is recorded against real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Amortization expense of deferred financing costs of our lines of credit and term loans for the three months ended September 30, 2018 and 2017 was $981,000 and $978,000, respectively, and for the nine months ended September 30, 2018 and 2017 was $3,578,000 and $2,828,000, respectively. Amortization expense of deferred financing costs related to our lines of credit and term loans is recorded to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income (loss). As of September 30, 2018, we had a receivable of $2,705,000 due from RHS, which is included in other assets, net, in our accompanying condensed consolidated balance sheet. The following is summarized financial information of RHS:
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Mortgage Loans Payable, Net |
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SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Payable, Net | 7. Mortgage Loans Payable, Net Mortgage loans payable were $711,978,000 ($686,954,000, including discount/premium and deferred financing costs, net) and $636,329,000 ($613,558,000, including discount/premium and deferred financing costs, net) as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, we had 57 fixed-rate and five variable-rate mortgage loans payable with effective interest rates ranging from 2.45% to 8.07% per annum based on interest rates in effect as of September 30, 2018 and a weighted average effective interest rate of 3.94%. As of December 31, 2017, we had 47 fixed-rate and four variable-rate mortgage loans payable with effective interest rates ranging from 2.45% to 7.57% per annum based on interest rates in effect as of December 31, 2017 and a weighted average effective interest rate of 4.02%. We are required by the terms of certain loan documents to meet certain covenants, such as net worth ratios, fixed charge coverage ratio, leverage ratio and reporting requirements. Mortgage loans payable, net consisted of the following as of September 30, 2018 and December 31, 2017:
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The following table reflects the changes in the carrying amount of mortgage loans payable, net for the nine months ended September 30, 2018 and 2017:
As of September 30, 2018, the principal payments due on our mortgage loans payable for the three months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter were as follows:
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Lines of Credit and Term Loans |
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Line of Credit Facility [Abstract] | |
Lines Of Credit | 8. Lines of Credit and Term Loans 2016 Corporate Line of Credit On February 3, 2016, we, through certain of our subsidiaries, or the subsidiary guarantors, entered into a credit agreement, or the 2016 Corporate Credit Agreement, with Bank of America, N.A., or Bank of America, as administrative agent, a swing line lender and a letter of credit issuer; KeyBank, National Association, or KeyBank, as syndication agent, a swing line lender and a letter of credit issuer; and a syndicate of other banks, as lenders, to obtain a revolving line of credit with an aggregate maximum principal amount of $300,000,000, or the 2016 Corporate Revolving Credit Facility, and a term loan credit facility in the amount of $200,000,000, or the 2016 Corporate Term Loan Facility, and together with the 2016 Corporate Revolving Credit Facility, the 2016 Corporate Line of Credit. Pursuant to the terms of the 2016 Corporate Credit Agreement, we may borrow up to $25,000,000 in the form of standby letters of credit and up to $25,000,000 in the form of swing line loans. The 2016 Corporate Line of Credit matures on February 3, 2019, and we have the right to extend the maturity date for one 12-month period during the term of the 2016 Corporate Credit Agreement, subject to satisfaction of certain conditions, including payment of an extension fee. On February 3, 2016, we also entered into separate revolving notes, or the 2016 Corporate Revolving Notes, and separate term notes, or the Term Notes, with each of Bank of America, KeyBank and a syndicate of other banks. The maximum principal amount of the 2016 Corporate Line of Credit can be increased by up to $500,000,000, for a total principal amount of $1,000,000,000, subject to: (i) the terms of the 2016 Corporate Credit Agreement; and (ii) such additional financing being offered and provided by existing lenders or new lenders under the 2016 Corporate Credit Agreement. On August 3, 2017, we entered into a First Amendment, Waiver and Commitment Increase Agreement, or the Amendment, with Bank of America, KeyBank, and the lenders named therein, to amend the 2016 Corporate Credit Agreement. The material terms of the Amendment provide for: (i) an increase in the 2016 Corporate Term Loan Facility in an amount equal to $50,000,000; (ii) the establishment of an additional capitalization rate of 8.75% for any Real Property Asset, as defined in the 2016 Corporate Credit Agreement, with mixed uses consisting of both assisted living and independent living properties and skilled nursing facilities, but specifically excluding medical office buildings and life science buildings; (iii) a revision to the definition of Term Loan Commitment, as defined in the 2016 Corporate Credit Agreement, to reflect the increase in the 2016 Corporate Term Loan Facility and specify that the aggregate principal amount of the Term Loan Commitments of all of the Term Loan Lenders, as defined in the 2016 Corporate Credit Agreement, as in effect on the effective date of the Amendment is $250,000,000; (iv) an agreement by each Term Loan Lender severally, but not jointly, to fund its pro rata share of the Initial Term Loan, as defined in the Amendment, and Incremental Term Loan, as defined in the Amendment, subject to the terms and conditions set forth in the Amendment; (v) the obligation of the Credit Parties, as defined in the 2016 Corporate Credit Agreement, to cause the Consolidated Secured Leverage Ratio, as defined in the 2016 Corporate Credit Agreement, as of the end of any fiscal quarter, to be equal to or less than 40.0%; (vi) the Lenders’ waiver of the notice requirement regarding the change in name and form of organization of certain subsidiary guarantors, as set forth in the Amendment; and (vii) the addition of Bank of the West, or New Lender, as a party to the 2016 Corporate Credit Agreement and a Term Loan Lender and Lender, as defined in the 2016 Corporate Credit Agreement, and New Lender’s agreement to be bound by all terms, provisions and conditions applicable to Lenders contained in the 2016 Corporate Credit Agreement. As a result of the Amendment, our aggregate borrowing capacity under the 2016 Corporate Line of Credit was increased to $550,000,000. Until such time as we or our operating partnership have obtained two investment grade ratings from any of Moody’s Investors Service, Inc., Standard & Poor’s Ratings Services and/or Fitch Ratings, loans under the 2016 Corporate Line of Credit bear interest at per annum rates equal to, at our option, either: (i)(a) the Eurodollar Rate, as defined in the 2016 Corporate Credit Agreement, as amended, plus (b) in the case of revolving loans, a margin ranging from 1.55% to 2.20% per annum based on our and our consolidated subsidiaries’ consolidated leverage ratio and in the case of term loans, a margin ranging from 1.50% to 2.10% per annum based on our and our consolidated subsidiaries’ consolidated leverage ratio; or (ii)(a) the greatest of: (1) the prime rate publicly announced by Bank of America, (2) the Federal Funds Rate (as defined in the 2016 Corporate Credit Agreement, as amended) plus 0.50% per annum, (3) the one-month Eurodollar Rate (as defined in the 2016 Corporate Credit Agreement, as amended) plus 1.00% per annum and (4) 0.00%, plus (b) in the case of revolving loans, a margin ranging from 0.55% to 1.20% per annum based on our consolidated leverage ratio and in the case of term loans, a margin ranging from 0.50% to 1.10% per annum based on our consolidated leverage ratio. After such time as we or our operating partnership have obtained two investment grade ratings from any of Moody’s Investors Service, Inc., Standard & Poor’s Rating Services and/or Fitch Ratings and submitted a written election to the administrative agent, loans under the 2016 Corporate Line of Credit shall bear interest at per annum rates equal to, at the option of our operating partnership, either: (i)(a) the Eurodollar Rate, as defined in the 2016 Corporate Credit Agreement, as amended, plus (b) in the case of revolving loans, a margin ranging from 0.925% to 1.70% per annum based on our or our operating partnership’s debt ratings and in the case of term loans, a margin ranging from 1.00% to 1.95% per annum based on our or our operating partnership’s debt ratings; or (ii)(a) the greatest of: (1) the prime rate publicly announced by Bank of America, (2) the Federal Funds Rate (as defined in the 2016 Corporate Credit Agreement, as amended) plus 0.50% per annum, (3) the one-month Eurodollar Rate (as defined in the 2016 Corporate Credit Agreement, as amended) plus 1.00% per annum and (4) 0.00%, plus (b) in the case of revolving loans, a margin ranging from 0.00% to 0.70% per annum based on our or our operating partnership’s debt ratings and in the case of term loans, a margin ranging from 0.00% to 0.95% per annum based on our or our operating partnership’s debt ratings. Accrued interest under the 2016 Corporate Credit Agreement, as amended, is payable monthly. We are required to pay a fee on the unused portion of the lenders’ commitments under the 2016 Corporate Revolving Credit Facility in an amount equal to 0.30% per annum on the actual average daily unused portion of the available commitments if the average daily amount of actual usage is less than 50.0% and in an amount equal to 0.20% per annum on the actual average daily unused portion of the available commitments if the actual average daily usage is greater than 50.0%. Such fee is payable quarterly in arrears. We are also required to pay a fee on the unused portion of the lenders’ commitments under the 2016 Corporate Term Loan Facility in an amount equal to: (i) 0.25% per annum multiplied by (ii) the actual daily amount of the unused Term Loan Commitments, as defined in the 2016 Corporate Credit Agreement, as amended, during the period for which payment is made. The unused fee on the 2016 Corporate Term Loan Facility is payable quarterly in arrears. The 2016 Corporate Credit Agreement, as amended, contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by our operating partnership and its subsidiaries and limitations on secured recourse indebtedness. As of September 30, 2018 and December 31, 2017, our aggregate borrowing capacity under the 2016 Corporate Line of Credit was $550,000,000. As of September 30, 2018 and December 31, 2017, borrowings outstanding under the 2016 Corporate Line of Credit totaled $523,500,000 and $444,000,000, respectively, and the weighted average interest rate on such borrowings outstanding was 4.08% and 3.23% per annum, respectively. Trilogy PropCo Line of Credit On December 1, 2015, in connection with the acquisition of Trilogy, our majority-owned subsidiary, we, through Trilogy PropCo Finance, LLC, a Delaware limited liability company and an indirect subsidiary of Trilogy, or Trilogy PropCo Parent, and certain of its subsidiaries, or the Trilogy PropCo Co-Borrowers, and, together with Trilogy PropCo Parent, the Trilogy PropCo Borrowers, entered into a loan agreement, or the Trilogy PropCo Credit Agreement, with KeyBank, as administrative agent; Regions Bank, as syndication agent; and a syndicate of other banks, as lenders, to obtain a line of credit with an aggregate maximum principal amount of $300,000,000, or the Trilogy PropCo Line of Credit. On December 1, 2015, we also entered into separate revolving notes with each of KeyBank and Regions Bank, whereby we promised to pay the principal amount of each revolving loan and accrued interest to the respective lender or its registered assigns, in accordance with the terms and conditions of the Trilogy PropCo Credit Agreement. The proceeds of the loans made under the Trilogy PropCo Line of Credit may be used for working capital, capital expenditures, acquisition of properties and fee interests in leasehold properties and general corporate purposes. The Trilogy PropCo Line of Credit has a four-year term, maturing on December 1, 2019, unless extended for a one-year period subject to satisfaction of certain conditions, including payment of an extension fee, or otherwise terminated in accordance with the terms thereunder. Availability of the total commitment under the Trilogy PropCo Line of Credit is subject to a borrowing base based on, among other things, the appraised value of certain real estate and villa units constructed on such real estate. In addition to paying interest on the outstanding principal under the Trilogy PropCo Line of Credit, the Trilogy PropCo Borrowers are required to pay an unused fee to the lenders in respect of the unutilized commitments at a rate equal to an initial rate of 0.25% per annum, subject to adjustment depending on usage. Outstanding amounts under the Trilogy PropCo Line of Credit may be prepaid, in whole or in part, at any time, without penalty or premium, subject to customary breakage costs. The Trilogy PropCo Credit Agreement contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including incurrence of debt and limitations on secured recourse indebtedness. Provided that no default or event of default has occurred and subject to certain terms and conditions set forth in the Trilogy PropCo Credit Agreement, the Trilogy PropCo Borrowers had the option, at any time and from time to time, before the maturity date, to request an increase of the total maximum principal amount by $100,000,000 to $400,000,000. On October 27, 2017, we entered into an amendment to the Trilogy PropCo Credit Agreement, or the Trilogy PropCo Amendment, with KeyBank, as administrative agent, and a syndicate of other banks, as lenders, to amend the terms of the Trilogy PropCo Credit Agreement. The material terms of the Trilogy PropCo Amendment provide for: (i) a reduction of the total commitment under the Trilogy PropCo Line of Credit from $300,000,000 to $250,000,000; (ii) a revision to the definition of applicable margin, pursuant to which the Trilogy PropCo Line of Credit bears interest at a floating rate based on an adjusted London Interbank Offered Rate, or LIBOR, plus an applicable margin of 4.00% per annum or an alternate base rate plus an applicable margin of 3.00% per annum, at the Trilogy PropCo Borrowers’ option; and (iii) the Trilogy PropCo Borrowers’ obligation to pay to KeyBank the unused fee that has accrued with respect to the portion of the total commitment being reduced. Our aggregate borrowing capacity under the Trilogy PropCo Line of Credit was $250,000,000 as of September 30, 2018 and December 31, 2017. As of September 30, 2018 and December 31, 2017, borrowings outstanding under the Trilogy PropCo Line of Credit totaled $159,518,000 and $179,376,000, respectively, and the weighted average interest rate on such borrowings outstanding was 6.16% and 5.39% per annum, respectively. Trilogy OpCo Line of Credit On March 21, 2016, we, through Trilogy Healthcare Holdings, Inc., a Delaware corporation and a direct subsidiary of Trilogy, and certain of its subsidiaries, or the Trilogy OpCo Borrowers, entered into a credit agreement, or the Trilogy OpCo Credit Agreement, with Wells Fargo Bank, National Association, or Wells Fargo, N.A., as administrative agent and lender; and a syndicate of other banks, as lenders, to obtain a $42,000,000 secured revolving credit facility, or the Trilogy OpCo Line of Credit. The Trilogy OpCo Line of Credit is secured primarily by residents’ receivables of the Trilogy OpCo Borrowers. The terms of the Trilogy OpCo Credit Agreement provided for a one-time increase during the term of the agreement by up to $18,000,000, for a maximum principal amount of $60,000,000, subject to certain conditions. In April 2016, we entered into an amendment to the Trilogy OpCo Credit Agreement to increase the aggregate maximum principal amount of the Trilogy OpCo Line of Credit to $60,000,000. In April 2018, we further amended the Trilogy OpCo Credit Agreement, or the Trilogy OpCo Amendment. The material terms of the Trilogy OpCo Amendment provide for: (i) a reduction in the aggregate maximum principal amount from $60,000,000 to $25,000,000; (ii) a reduced floating interest rate based on LIBOR, plus an applicable margin of 2.75% per annum, for LIBOR Rate Loans, as defined in the agreement, or an alternate base rate plus an applicable margin of 1.75% per annum, for Base Rate Loans, as defined in the agreement, at the Trilogy OpCo Borrowers’ option; (iii) a reduced letter of credit fee of 2.75% per annum times the undrawn amount of outstanding letters of credit; and (iv) an updated maturity date of April 27, 2021. Accrued interest under the Trilogy OpCo Line of Credit is payable monthly. In addition to paying interest on the outstanding principal under the Trilogy OpCo Line of Credit, the Trilogy OpCo Borrowers are required to pay an unused fee in an amount equal to 0.50% per annum times the average monthly unutilized commitment. The unused fee is payable monthly in arrears, commencing on the first day of each month from and after the closing date up to the first day of the month prior to the date on which the obligations are paid in full. If the commitment is terminated prior to the second anniversary of the closing date, a prepayment premium of 1.00% of the total commitment applies. The Trilogy OpCo Credit Agreement, as amended, contains customary events of default, covenants and other terms, including, among other things, restrictions on the payment of dividends and other distributions, incurrence of indebtedness, creation of liens and transactions with affiliates. Availability of the total commitment under the Trilogy OpCo Line of Credit is subject to a borrowing base based on, among other things, the eligible accounts receivable outstanding of the Trilogy OpCo Borrowers. As of September 30, 2018 and December 31, 2017, our aggregate borrowing capacity under the Trilogy OpCo Line of Credit was $25,000,000 and $60,000,000, respectively, subject to certain terms and conditions. As of September 30, 2018 and December 31, 2017, borrowings outstanding under the Trilogy OpCo Line of Credit totaled $15,055,000 and $749,000, respectively, and the weighted average interest rate on such borrowings outstanding was 4.89% and 5.84% per annum, respectively. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | 9. Derivative Financial Instruments Consistent with ASC Topic 815, Derivatives and Hedging, or ASC Topic 815, we record derivative financial instruments in our accompanying condensed consolidated balance sheets as either an asset or a liability measured at fair value. ASC Topic 815 permits special hedge accounting if certain requirements are met. Hedge accounting allows for gains and losses on derivatives designated as hedges to be offset by the change in value of the hedged item or items or to be deferred in other comprehensive income (loss). The following table lists the derivative financial instruments held by us as of September 30, 2018 and December 31, 2017:
As of September 30, 2018 and December 31, 2017, none of our derivative financial instruments were designated as hedges. Derivative financial instruments not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements of ASC Topic 815. Changes in the fair value of derivative financial instruments are recorded as a component of interest expense in gain (loss) in fair value of derivative financial instruments in our accompanying condensed consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2018 and 2017, we recorded $(750,000) and $(59,000), respectively, and for the nine months ended September 30, 2018 and 2017, we recorded $(1,127,000) and $44,000, respectively, as an (increase) decrease to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income (loss) related to the change in the fair value of our derivative financial instruments. See Note 15, Fair Value Measurements, for a further discussion of the fair value of our derivative financial instruments. |
Identified Intangible Liabilities, Net |
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Identified Intangible Liabilities, Net | 10. Identified Intangible Liabilities, Net As of September 30, 2018 and December 31, 2017, identified intangible liabilities consisted of below-market leases of $1,192,000 and $1,568,000, respectively, net of accumulated amortization of $1,142,000 and $1,135,000, respectively. Amortization expense of below-market leases for the three months ended September 30, 2018 and 2017 was $107,000 and $146,000, respectively, and for the nine months ended September 30, 2018 and 2017 was $376,000 and $518,000, respectively. Amortization expense of below-market leases is recorded to real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The weighted average remaining life of below-market leases was 4.6 years and 4.8 years as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, estimated amortization expense of below-market leases for the three months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Litigation We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Matters We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. Other Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business, which include calls/puts to sell/acquire properties. In our view, these matters are not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Redeemable Noncontrolling Interest |
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Redeemable Noncontrolling Interest | 12. Redeemable Noncontrolling Interests On January 15, 2013, our advisor made an initial capital contribution of $2,000 to our operating partnership in exchange for 222 limited partnership units. Upon the effectiveness of the Advisory Agreement on February 26, 2014, Griffin-American Advisor became our advisor. As of September 30, 2018 and December 31, 2017, we owned greater than a 99.99% general partnership interest in our operating partnership, and our advisor owned less than a 0.01% limited partnership interest in our operating partnership. As our advisor, Griffin-American Advisor is entitled to special redemption rights of its limited partnership units. The noncontrolling interest of our advisor in our operating partnership that has redemption features outside of our control is accounted for as a redeemable noncontrolling interest and is presented outside of permanent equity in our accompanying condensed consolidated balance sheets. See Note 14, Related Party Transactions — Liquidity Stage — Subordinated Participation Interest — Subordinated Distribution Upon Listing and Note 14, Related Party Transactions — Subordinated Distribution Upon Termination, for a further discussion of the redemption features of the limited partnership units. On December 1, 2015, we, through Trilogy REIT Holdings, LLC, or Trilogy REIT Holdings, in which we indirectly hold a 70.0% ownership interest, pursuant to an equity purchase agreement with Trilogy and other seller parties thereto, completed the acquisition of approximately 96.7% of the outstanding equity interests of Trilogy. Pursuant to the equity purchase agreement, at the closing of the acquisition, certain members of Trilogy’s pre-closing management retained a portion of the outstanding equity interests of Trilogy held by such members of Trilogy’s pre-closing management, representing in the aggregate approximately 3.3% of the outstanding equity interests of Trilogy. The noncontrolling interests held by Trilogy’s pre-closing management have redemption features outside of our control and are accounted for as redeemable noncontrolling interests in our accompanying condensed consolidated balance sheets. As of September 30, 2018, Trilogy REIT Holdings and certain members of Trilogy’s pre-closing management owned approximately 96.7% and 3.3% of Trilogy, respectively. We record the carrying amount of redeemable noncontrolling interests at the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions or (ii) the redemption value. The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the nine months ended September 30, 2018 and 2017:
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Equity |
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Equity | 13. Equity Preferred Stock Our charter authorizes us to issue 200,000,000 shares of our preferred stock, par value $0.01 per share. As of September 30, 2018 and December 31, 2017, no shares of preferred stock were issued and outstanding. Common Stock Our charter authorizes us to issue 1,000,000,000 shares of our common stock, par value $0.01 per share. On January 15, 2013, our advisor acquired 22,222 shares of our common stock for total cash consideration of $200,000 and was admitted as our initial stockholder. We used the proceeds from the sale of shares of our common stock to our advisor to make an initial capital contribution to our operating partnership. On March 12, 2015, we terminated the primary portion of our initial offering. We continued to offer shares of our common stock in our initial offering pursuant to the DRIP, until the termination of the DRIP portion of our initial offering and deregistration of our initial offering on April 22, 2015. On March 25, 2015, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $250,000,000 of additional shares of our common stock pursuant to the Secondary DRIP Offering. The Registration Statement on Form S-3 was automatically effective with the SEC upon its filing; however, we did not commence offering shares pursuant to the Secondary DRIP Offering until April 22, 2015, following the deregistration of our initial offering. Through September 30, 2018, we had issued 184,930,598 shares of our common stock in connection with the primary portion of our initial offering and 25,257,815 shares of our common stock pursuant to the DRIP and the Secondary DRIP Offering. We also repurchased 11,812,590 shares of our common stock under our share repurchase plan and granted an aggregate of 105,000 shares of our restricted common stock to our independent directors through September 30, 2018. As of September 30, 2018 and December 31, 2017, we had 198,503,045 and 199,343,234 shares of our common stock issued and outstanding, respectively. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of noncontrolling interests, by component consisted of the following for the nine months ended September 30, 2018 and 2017:
Noncontrolling Interests As of September 30, 2018 and December 31, 2017, Trilogy REIT Holdings owned approximately 96.7% of Trilogy. We are the indirect owner of a 70.0% interest in Trilogy REIT Holdings pursuant to a joint venture agreement, or the Trilogy JV Agreement, with an indirect, wholly-owned subsidiary of NorthStar Healthcare Income, Inc., or NHI. We serve as the sole manager of Trilogy REIT Holdings. Prior to October 1, 2018, NHI was the indirect owner of the remaining 30.0% interest in Trilogy REIT Holdings. On October 1, 2018, we entered into an amended and restated joint venture agreement, or the Amended Trilogy JV Agreement, with the other members of Trilogy REIT Holdings. See Note 20, Subsequent Event, for a further discussion. As of September 30, 2018 and December 31, 2017, 30.0% of the net earnings of Trilogy REIT Holdings were allocated to noncontrolling interests. In connection with the acquisition and operation of Trilogy, profit interest units in Trilogy, or the Profit Interests, were issued to Trilogy Management Services, LLC and an independent director of Trilogy, both unaffiliated third parties that manage or direct the day-to-day operations of Trilogy. The Profit Interests consist of time-based or performance-based commitments. The time-based Profit Interests were measured at their grant date fair value and vest in increments of 20.0% on each anniversary of the respective grant date over a five-year period. We amortize the time-based Profit Interests on a straight-line basis over the vesting periods, which are recorded to general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The performance-based Profit Interests are subject to a performance commitment and vest upon liquidity events as defined in the Profit Interests agreements. The performance-based Profit Interests were measured at their grant date fair value and immediately expensed. The performance-based Profit Interests are subject to fair value measurements until vesting occurs with changes to fair value recorded to general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Stock compensation expense related to Profit Interests for both the three months ended September 30, 2018 and 2017 was $195,000 and for the nine months ended September 30, 2018 and 2017, was $585,000 and $390,000, respectively. There were no canceled, expired or exercised Profit Interests during the nine months ended September 30, 2018 and 2017. The nonvested awards are presented as noncontrolling interests and are re-classified to redeemable noncontrolling interests upon vesting as they have redemption features outside of our control similar to the common stock units held by Trilogy’s pre-closing management once vested. See Note 12, Redeemable Noncontrolling Interests, for a further discussion. On January 6, 2016, one of our consolidated subsidiaries issued non-voting preferred shares of beneficial interests to qualified investors for total proceeds of $125,000. These preferred shares of beneficial interests are entitled to receive cumulative preferential cash dividends at the rate of 12.5% per annum. In accordance with ASC Topic 810, we classify the value of the subsidiary’s preferred shares of beneficial interests as noncontrolling interests in our accompanying condensed consolidated balance sheets and the dividends of the preferred shares of beneficial interests as net loss attributable to noncontrolling interests in our accompanying condensed consolidated statements of operations and comprehensive income (loss). In addition, as of September 30, 2018 and December 31, 2017, we owned an 86.0% interest in a consolidated limited liability company that owns Lakeview IN Medical Plaza, which we acquired on January 21, 2016. As such, 14.0% of the net earnings of Lakeview IN Medical Plaza were allocated to noncontrolling interests for the three and nine months ended September 30, 2018 and 2017. Distribution Reinvestment Plan We adopted the DRIP that allowed stockholders to purchase additional shares of our common stock through the reinvestment of distributions at an offering price equal to 95.0% of the primary offering price of our initial offering, subject to certain conditions. We had registered and reserved $35,000,000 in shares of our common stock for sale pursuant to the DRIP in our initial offering at an offering price of $9.50 per share, which we terminated on April 22, 2015. On March 25, 2015, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $250,000,000 of additional shares of our common stock pursuant to the Secondary DRIP Offering. The Registration Statement on Form S-3 was automatically effective with the SEC upon its filing; however, we did not commence offering shares pursuant to the Secondary DRIP Offering until April 22, 2015, following the deregistration of our initial offering. Effective October 5, 2016, the Amended and Restated DRIP amended the price at which shares of our common stock are issued pursuant to the Secondary DRIP Offering. Pursuant to the Amended and Restated DRIP, shares are issued at a price equal to the most recently estimated value of one share of our common stock, as approved and established by our board. The Amended and Restated DRIP became effective with the distribution payment to stockholders paid in the month of November 2016. In all other material respects, the terms of the Secondary DRIP Offering remain unchanged by the Amended and Restated DRIP. On October 4, 2017, our board approved and established an updated estimated per share NAV of our common stock of $9.27. Accordingly, commencing with the distribution payment to stockholders paid in the month of November 2017, shares of our common stock issued pursuant to the Amended and Restated DRIP were issued at $9.27 per share. On October 3, 2018, our board approved and established an updated estimated per share NAV of our common stock of $9.37. Accordingly, commencing with the distribution payment to stockholders paid in the month of November 2018, shares of our common stock issued pursuant to the Amended and Restated DRIP were or will be issued at $9.37 per share until such time as our board determines a new estimated per share NAV. For the three months ended September 30, 2018 and 2017, $14,995,000 and $15,826,000, respectively, in distributions were reinvested that resulted in 1,617,584 and 1,756,466 shares of our common stock, respectively, being issued pursuant to the Secondary DRIP Offering. For the nine months ended September 30, 2018 and 2017, $45,444,000 and $47,453,000, respectively, in distributions were reinvested that resulted in 4,902,237 and 5,266,636 shares of our common stock, respectively, being issued pursuant to the Secondary DRIP Offering. As of September 30, 2018 and December 31, 2017, a total of $235,125,000 and $189,681,000, respectively, in distributions were reinvested that resulted in 25,257,815 and 20,355,578 shares of our common stock, respectively, being issued pursuant to the DRIP portion of our initial offering and the Secondary DRIP Offering. Share Repurchase Plan Our board has approved a share repurchase plan. Our share repurchase plan allows for repurchases of shares of our common stock by us when certain criteria are met. Share repurchases will be made at the sole discretion of our board. Subject to the availability of the funds for share repurchases, we will limit the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year; provided, however, that shares subject to a repurchase requested upon the death of a stockholder will not be subject to this cap. Funds for the repurchase of shares of our common stock will come exclusively from the cumulative proceeds we receive from the sale of shares of our common stock pursuant to the DRIP portion of our initial offering and the Secondary DRIP Offering. Furthermore, our share repurchase plan provides that if there are insufficient funds to honor all repurchase requests, pending requests will be honored among all requests for repurchase in any given repurchase period as follows: first, pro rata as to repurchases sought upon a stockholder’s death; next, pro rata as to repurchases sought by stockholders with a qualifying disability; and, finally, pro rata as to other repurchase requests. All repurchases will be subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or “qualifying disability,” as defined in our share repurchase plan. Further, all share repurchases will be repurchased following a one-year holding period at a price between 92.5% and 100% of each stockholder’s repurchase amount, depending on the period of time their shares have been held. Until October 4, 2016, the repurchase amount for shares repurchased under our share repurchase plan was equal to the lesser of the amount a stockholder paid for their shares of our common stock or the most recent per share offering price. However, if shares of our common stock were repurchased in connection with a stockholder’s death or qualifying disability, the repurchase price was no less than 100% of the price paid to acquire the shares of our common stock from us. Effective with respect to share repurchase requests submitted during the fourth quarter 2016, the Repurchase Amount, as such term is defined in our share repurchase plan, as amended, is equal to the lesser of (i) the amount per share that a stockholder paid for their shares of our common stock, or (ii) the most recent estimated value of one share of our common stock, as determined by our board. Accordingly, commencing with the share repurchase requests submitted during the fourth quarter 2016, we repurchase shares as follows: (a) for stockholders who have continuously held their shares of our common stock for at least one year, the price will be 92.5% of the Repurchase Amount; (b) for stockholders who have continuously held their shares of our common stock for at least two years, the price will be 95.0% of the Repurchase Amount; (c) for stockholders who have continuously held their shares of our common stock for at least three years, the price will be 97.5% of the Repurchase Amount; (d) for stockholders who have held their shares of our common stock for at least four years, the price will be 100% of the Repurchase Amount; and (e) for requests submitted pursuant to a death or a qualifying disability, the price will be 100% of the amount per share the stockholder paid for their shares of common stock (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock). On October 4, 2017, our board approved and established an updated estimated per share NAV of our common stock of $9.27. Accordingly, commencing with share repurchase requests submitted during the fourth quarter of 2017, the updated estimated per share NAV of $9.27 served as the Repurchase Amount for stockholders who purchased their shares at a price equal to or greater than $9.27 per share in our initial offering. On October 3, 2018, our board approved and established an updated estimated per share NAV of our common stock of $9.37. Accordingly, commencing with share repurchase requests submitted during the fourth quarter of 2018, the updated estimated per share NAV of $9.37 served or will serve as the Repurchase Amount for stockholders who purchased their shares at a price equal to or greater than $9.37 per share in our initial offering, until such time as our board determines a new estimated per share NAV. For the three months ended September 30, 2018 and 2017, we received share repurchase requests and repurchased 1,994,354 and 1,039,450 shares of our common stock, respectively, for an aggregate of $18,399,000 and $9,317,000, respectively, at an average repurchase price of $9.23 and $8.96 per share, respectively. For the nine months ended September 30, 2018 and 2017, we received share repurchase requests and repurchased 5,764,926 and 2,699,995 shares of our common stock, respectively, for an aggregate of $53,099,000 and $24,022,000, respectively, at an average repurchase price of $9.21 and $8.90 per share, respectively. As of September 30, 2018 and December 31, 2017, we received share repurchase requests and repurchased 11,812,590 and 6,047,664 shares of our common stock, respectively, for an aggregate of $108,457,000 and $55,358,000, respectively, at an average repurchase price of $9.18 and $9.15 per share, respectively. All shares were repurchased using proceeds we received from the sale of shares of our common stock pursuant to the DRIP portion of our initial offering and the Secondary DRIP Offering. 2013 Incentive Plan We adopted the 2013 Incentive Plan, or our incentive plan, pursuant to which our board or a committee of our independent directors may make grants of options, shares of our common stock, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our incentive plan is 2,000,000 shares. For the three and nine months ended September 30, 2018, we granted an aggregate of 15,000 and 22,500 shares, respectively, of our restricted common stock, at a weighted average grant date fair value of $9.27 per share, to our independent directors in connection with their re-election to our board or in consideration for their past services rendered. Such shares vest as to 20.0% of the shares on the date of grant and on each of the first four anniversaries of the grant date. For the three months ended September 30, 2018 and 2017, we recognized stock compensation expense related to the director grants of $72,000 and $71,000, respectively, and for both the nine months ended September 30, 2018 and 2017, we recognized stock compensation expense related to the director grants of $171,000. Such stock compensation expense is included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). |
Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | 14. Related Party Transactions Fees and Expenses Paid to Affiliates All of our executive officers and our non-independent directors are also executive officers and employees and/or holders of a direct or indirect interest in our advisor, one of our co-sponsors or other affiliated entities. We are affiliated with our advisor, American Healthcare Investors and AHI Group Holdings; however, we are not affiliated with Griffin Capital, our dealer manager, Colony Capital or Mr. Flaherty. We entered into the Advisory Agreement, which entitles our advisor and its affiliates to specified compensation for certain services, as well as reimbursement of certain expenses. Our board, including a majority of our independent directors, has reviewed the material transactions between our affiliates and us during the three and nine months ended September 30, 2018. Set forth below is a description of the transactions with affiliates. We believe that we have executed all of the transactions set forth below on terms that are fair and reasonable to us and on terms no less favorable to us than those available from unaffiliated third parties. In the aggregate, for the three months ended September 30, 2018 and 2017, we incurred $6,705,000 and $5,544,000, respectively, and for the nine months ended September 30, 2018 and 2017, we incurred $18,357,000 and $17,931,000, respectively, in fees and expenses to our affiliates as detailed below. Acquisition and Development Stage Acquisition Fee We pay our advisor or its affiliates an acquisition fee of up to 2.25% of the contract purchase price, including any contingent or earn-out payments that may be paid, for each property we acquire or 2.00% of the origination or acquisition price, including any contingent or earn-out payments that may be paid, for any real estate-related investment we originate or acquire. Since January 31, 2015, acquisition fees are and have been paid in cash. Our advisor or its affiliates are entitled to receive these acquisition fees for properties and real estate-related investments we acquire with funds raised in our initial offering including acquisitions completed after the termination of the Advisory Agreement, or funded with net proceeds from the sale of a property or real estate-related investment, subject to certain conditions. For the three months ended September 30, 2018 and 2017, we incurred $1,069,000 and $67,000, respectively, and for the nine months ended September 30, 2018 and 2017, we incurred $1,076,000 and $1,700,000, respectively, in acquisition fees to our advisor. Acquisition fees in connection with the acquisition of properties accounted for as business combinations in accordance with ASC Topic 805, Business Combinations, or ASC Topic 805, are expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Acquisition fees in connection with the acquisition of properties accounted for as asset acquisitions in accordance with ASU 2017-01 or the acquisition of real estate-related investments are capitalized as part of the associated investments in our accompanying condensed consolidated balance sheets. Development Fee In the event our advisor or its affiliates provide development-related services, our advisor or its affiliates receive a development fee in an amount that is usual and customary for comparable services rendered for similar projects in the geographic market where the services are provided; however, we will not pay a development fee to our advisor or its affiliates if our advisor or its affiliates elect to receive an acquisition fee based on the cost of such development. For the three and nine months ended September 30, 2018, we incurred $24,000 and $69,000, respectively, in development fees to our advisor or its affiliates. For the three and nine months ended September 30, 2017, we did not incur any development fees to our advisor or its affiliates. Reimbursement of Acquisition Expenses We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets, which are reimbursed regardless of whether an asset is acquired. The reimbursement of acquisition expenses, acquisition fees, total development costs, real estate commissions or other fees paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price or real estate-related investments, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors, not otherwise interested in the transaction. For the three and nine months ended September 30, 2018 and 2017, such fees and expenses noted above did not exceed 6.0% of the contract purchase price of our property acquisitions or real estate-related investments. For the three and nine months ended September 30, 2018 and 2017, we did not incur any acquisition expenses to our advisor or its affiliates. Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as business combinations in accordance with ASC Topic 805 are expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as asset acquisitions in accordance with ASU 2017-01 or the acquisition of real estate-related investments are capitalized as part of the associated investments in our accompanying condensed consolidated balance sheets. Operational Stage Asset Management Fee We pay our advisor or its affiliates a monthly fee for services rendered in connection with the management of our assets equal to one-twelfth of 0.75% of average invested assets, subject to our stockholders receiving distributions in an amount equal to 5.0% per annum, cumulative, non-compounded, of invested capital. For such purposes, average invested assets means the average of the aggregate book value of our assets invested in real estate properties and real estate-related investments, before deducting depreciation, amortization, bad debt and other similar non-cash reserves, computed by taking the average of such values at the end of each month during the period of calculation; and invested capital means, for a specified period, the aggregate issue price of shares of our common stock purchased by our stockholders, reduced by distributions of net sales proceeds by us to our stockholders and by any amounts paid by us to repurchase shares of our common stock pursuant to our share repurchase plan. For the three months ended September 30, 2018 and 2017, we incurred $4,873,000 and $4,713,000, respectively, and for the nine months ended September 30, 2018 and 2017, we incurred $14,438,000 and $14,054,000, respectively, in asset management fees to our advisor or its affiliates. Asset management fees are included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Property Management Fee Our advisor or its affiliates may directly serve as property manager of our properties or may sub-contract their property management duties to any third party and provide oversight of such third-party property manager. We pay our advisor or its affiliates a monthly management fee equal to a percentage of the gross monthly cash receipts of such property as follows: (i) a property management oversight fee of 1.0% of the gross monthly cash receipts of any stand-alone, single-tenant, net leased property; (ii) a property management oversight fee of 1.5% of the gross monthly cash receipts of any property that is not a stand-alone, single-tenant, net leased property and for which our advisor or its affiliates provide oversight of a third party that performs the duties of a property manager with respect to such property; or (iii) a fair and reasonable property management fee that is approved by a majority of our directors, including a majority of our independent directors, that is not less favorable to us than terms available from unaffiliated third parties for any property that is not a stand-alone, single-tenant, net leased property and for which our advisor or its affiliates will directly serve as the property manager without sub-contracting such duties to a third party. For the three months ended September 30, 2018 and 2017, we incurred $617,000 and $589,000, respectively, and for the nine months ended September 30, 2018 and 2017, we incurred $1,811,000 and $1,761,000, respectively, in property management fees to our advisor or its affiliates. Property management fees are included in property operating expenses and rental expenses in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Lease Fees We pay our advisor or its affiliates a separate fee for any leasing activities in an amount not to exceed the fee customarily charged in arm’s-length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area. Such fee is generally expected to range from 3.0% to 6.0% of the gross revenues generated during the initial term of the lease. For the three months ended September 30, 2018 and 2017, we incurred $36,000 and $102,000, respectively, and for the nine months ended September 30, 2018 and 2017, we incurred $764,000 and $222,000, respectively, in lease fees to our advisor or its affiliates. Lease fees are capitalized as lease commissions and included in other assets, net in our accompanying condensed consolidated balance sheets. Construction Management Fee In the event that our advisor or its affiliates assist with planning and coordinating the construction of any capital or tenant improvements, our advisor or its affiliates are paid a construction management fee of up to 5.0% of the cost of such improvements. For the three months ended September 30, 2018 and 2017, we incurred $38,000 and $20,000, respectively, and for the nine months ended September 30, 2018 and 2017, we incurred $52,000 and $38,000, respectively, in construction management fees to our advisor or its affiliates. Construction management fees are capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets or are expensed and included in our accompanying condensed consolidated statements of operations and comprehensive income (loss), as applicable. Operating Expenses We reimburse our advisor or its affiliates for operating expenses incurred in rendering services to us, subject to certain limitations. However, we cannot reimburse our advisor or its affiliates at the end of any fiscal quarter for total operating expenses that, in the four consecutive fiscal quarters then ended, exceed the greater of: (i) 2.0% of our average invested assets, as defined in the Advisory Agreement; or (ii) 25.0% of our net income, as defined in the Advisory Agreement, unless our independent directors determined that such excess expenses were justified based on unusual and nonrecurring factors which they deem sufficient. Our operating expenses as a percentage of average invested assets and as a percentage of net income were 0.9% and 18.4%, respectively, for the 12 months ended September 30, 2018; therefore, our operating expenses did not exceed the aforementioned limitation. For the three months ended September 30, 2018 and 2017, our advisor or its affiliates incurred operating expenses on our behalf of $48,000 and $53,000, respectively, and for the nine months ended September 30, 2018 and 2017, incurred $147,000 and $156,000, respectively. Operating expenses are generally included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Compensation for Additional Services We pay our advisor and its affiliates for services performed for us other than those required to be rendered by our advisor or its affiliates under the Advisory Agreement. The rate of compensation for these services has to be approved by a majority of our board, including a majority of our independent directors, and cannot exceed an amount that would be paid to unaffiliated third parties for similar services. For the three and nine months ended September 30, 2018 and 2017, our advisor and its affiliates were not compensated for any additional services. Liquidity Stage Disposition Fees For services relating to the sale of one or more properties, we pay our advisor or its affiliates a disposition fee of up to the lesser of 2.0% of the contract sales price or 50.0% of a customary competitive real estate commission given the circumstances surrounding the sale, in each case as determined by our board, including a majority of our independent directors, upon the provision of a substantial amount of the services in the sales effort. The amount of disposition fees paid, when added to the real estate commissions paid to unaffiliated third parties, will not exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. For the three and nine months ended September 30, 2018, we did not incur any disposition fees to our advisor or its affiliates. For the three months ended September 30, 2017, we disposed of one integrated senior health campus. For the nine months ended September 30, 2017, we disposed of two integrated senior health campuses and one land parcel within our integrated senior health campus segment. Our advisor agreed to waive the disposition fees related to such dispositions during 2017 that may otherwise have been due to our advisor pursuant to the Advisory Agreement. Our advisor did not receive any additional securities, shares of our stock or any other form of consideration or any repayment as a result of the waiver of such disposition fee. Subordinated Participation Interest Subordinated Distribution of Net Sales Proceeds In the event of liquidation, we will pay our advisor a subordinated distribution of net sales proceeds. The distribution will be equal to 15.0% of the remaining net proceeds from the sales of properties, after distributions to our stockholders, in the aggregate, of: (i) a full return of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan); plus (ii) an annual 7.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock, as adjusted for distributions of net sales proceeds. Actual amounts to be received depend on the sale prices of properties upon liquidation. For the three and nine months ended September 30, 2018 and 2017, we did not pay any such distributions to our advisor. Subordinated Distribution Upon Listing Upon the listing of shares of our common stock on a national securities exchange, in redemption of our advisor’s limited partnership units, we will pay our advisor a distribution equal to 15.0% of the amount by which: (i) the market value of our outstanding common stock at listing plus distributions paid prior to listing exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the amount of cash that, if distributed to stockholders as of the date of listing, would have provided them an annual 7.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the date of listing. Actual amounts to be paid depend upon the market value of our outstanding stock at the time of listing, among other factors. For the three and nine months ended September 30, 2018 and 2017, we did not pay any such distributions to our advisor. Subordinated Distribution Upon Termination Pursuant to the Agreement of Limited Partnership, as amended, of our operating partnership, upon termination or non-renewal of the Advisory Agreement, our advisor will also be entitled to a subordinated distribution in redemption of its limited partnership units from our operating partnership equal to 15.0% of the amount, if any, by which: (i) the appraised value of our assets on the termination date, less any indebtedness secured by such assets, plus total distributions paid through the termination date, exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the total amount of cash equal to an annual 7.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the termination date. In addition, our advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing or other liquidity event, including a liquidation, sale of substantially all of our assets or merger in which our stockholders receive in exchange for their shares of our common stock, shares of a company that are traded on a national securities exchange. As of September 30, 2018 and 2017, we did not have any liability related to the subordinated distribution upon termination. Accounts Payable Due to Affiliates The following amounts were outstanding to our affiliates as of September 30, 2018 and December 31, 2017:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 15. Fair Value Measurements Assets and Liabilities Reported at Fair Value The table below presents our assets and liabilities measured at fair value on a recurring basis as of September 30, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:
The table below presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:
There were no transfers into or out of fair value measurement levels during the nine months ended September 30, 2018 and 2017. Derivative Financial Instruments We use interest rate swaps and interest rate caps to manage interest rate risk associated with variable-rate debt. The valuation of these instruments is determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, as well as option volatility. The fair values of interest rate swaps are determined by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates derived from observable market interest rate curves. To comply with the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC Topic 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although we have determined that the majority of the inputs used to value our derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparty. However, as of September 30, 2018, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Contingent Consideration Asset As of September 30, 2018, we have not recorded any contingent consideration receivables. In connection with our acquisition of Mt. Juliet TN MOB in March 2015, there was a contingent consideration receivable in the range of $0 up to a maximum of $634,000 as of the acquisition date. We would have received payment of contingent consideration in the event that a tenant occupying 6,611 square feet of GLA terminated their lease prior to March 31, 2018, and to the extent there was a shortfall in rent from such tenant. As of March 31, 2018, such tenant was current on all rental payments and the lease expired with no amounts due to us. In addition, we were to receive payment of contingent consideration in the event a replacement tenant was not found as of the expiration of the lease of the above mentioned tenant prior to March 31, 2018. As of March 31, 2018, a replacement tenant was not found and, as such, we received consideration of $45,000 in May 2018. Liabilities As of September 30, 2018 and December 31, 2017, we have accrued $3,498,000 and $5,107,000, respectively, of contingent consideration obligations in connection with our acquisitions of two senior housing facilities within North Carolina ALF Portfolio in January and June 2015. Such obligations are included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets and are paid upon various conditions being met, including our tenants achieving certain operating performance metrics. In particular, the amounts will be paid based upon the computation in the lease agreement and receipt of notification within three years after the applicable acquisition date that the tenant has increased its earnings before interest, taxes, depreciation and rent cost, or EBITDAR, as defined in the lease agreement, for the preceding three months. Effective January 2018, the lease agreement was amended to extend the contingent consideration payout period to four years from the original three years for the two facilities with other terms of the amendment remaining consistent with the original lease agreement. There is no minimum required payment, but the total maximum payment is capped at $20,318,000 for the two senior housing facilities and is also limited by the tenant’s ability to increase its EBITDAR. Any payment made will result in an increase in the monthly rent charged to the tenant and additional rental revenue to us. As of September 30, 2018, we estimate that we will pay the contingent consideration of $3,498,000 for these two facilities within North Carolina ALF Portfolio. Warrants As of September 30, 2018 and December 31, 2017, we have recorded $1,078,000 and $1,155,000, respectively, related to warrants in Trilogy common units held by certain members of Trilogy’s pre-closing management, which is included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets. Once exercised, these warrants have redemption features similar to the common units held by members of Trilogy’s pre-closing management. See Note 12, Redeemable Noncontrolling Interests, for a further discussion. As of September 30, 2018 and December 31, 2017, the carrying value is a reasonable estimate of fair value. Financial Instruments Disclosed at Fair Value ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments, whether or not recognized on the face of the balance sheet. Fair value is defined under ASC Topic 820. Our accompanying condensed consolidated balance sheets include the following financial instruments: real estate notes receivable, debt security investment, cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits, accounts payable and accrued liabilities, accounts payable due to affiliates, mortgage loans payable and borrowings under our lines of credit and term loans. We consider the carrying values of cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits and accounts payable and accrued liabilities to approximate the fair value for these financial instruments based upon an evaluation of the underlying characteristics, market data and because of the short period of time between origination of the instruments and their expected realization. The fair value of cash and cash equivalents is classified in Level 1 of the fair value hierarchy. The fair value of accounts payable due to affiliates is not determinable due to the related party nature of the accounts payable. The fair values of the other financial instruments are classified in Level 2 of the fair value hierarchy. The fair value of our real estate notes receivable and debt security investment are estimated using a discounted cash flow analysis using interest rates available to us for investments with similar terms and maturities. The fair value of our mortgage loans payable and our lines of credit and term loans are estimated using a discounted cash flow analysis using borrowing rates available to us for debt instruments with similar terms and maturities. We have determined that the valuations of our real estate notes receivable, debt security investment, mortgage loans payable and lines of credit and term loans are classified in Level 2 within the fair value hierarchy. The carrying amounts and estimated fair values of such financial instruments as of September 30, 2018 and December 31, 2017 were as follows:
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Income Taxes |
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Income Taxes | 16. Income Taxes As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. We have elected to treat certain of our consolidated subsidiaries as taxable REIT subsidiaries, or TRSs, pursuant to the Code. TRSs may participate in services that would otherwise be considered impermissible for REITs and are subject to federal and state income tax at regular corporate tax rates. On December 22, 2017, the U.S. government enacted comprehensive tax legislation pursuant to the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate tax rate from 35.0% to 21.0%, eliminating the corporate alternative minimum tax and changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. We adopted ASU 2018-05 which allows us to record provisional amounts during the period of enactment. Any change to the provisional amounts will be recorded as an adjustment to the provision for income taxes in the period the amounts are determined. The measurement period ends when we have obtained, prepared and analyzed the information necessary to finalize the provision, but cannot extend beyond one year of the enactment date. The components of income (loss) before taxes for the three and nine months ended September 30, 2018 and 2017 were as follows:
The components of income tax benefit for the three and nine months ended September 30, 2018 and 2017 were as follows:
Current Income Tax Federal and state income taxes are generally a function of the level of income recognized by our TRSs. Foreign income taxes are generally a function of our income on our real estate and real estate-related investments located in the United Kingdom, or UK, and Isle of Man. Deferred Taxes Deferred income tax is generally a function of the period’s temporary differences (primarily basis differences between tax and financial reporting for real estate assets and equity investments) and generation of tax net operating losses that may be realized in future periods depending on sufficient taxable income. We apply the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes, for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, we will initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on our estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. As of September 30, 2018 and December 31, 2017, we did not have any tax benefits or liabilities for uncertain tax positions that we believe should be recognized in our accompanying condensed consolidated financial statements. We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A valuation allowance is established if we believe it is more likely than not that all or a portion of the deferred tax assets are not realizable. As of September 30, 2018 and December 31, 2017, our valuation allowance substantially reserves the net deferred tax assets due to inherent uncertainty of future income. We will continue to monitor industry and economic conditions, and our ability to generate taxable income based on our business plan and available tax planning strategies, which would allow us to utilize the tax benefits of the net deferred tax assets and thereby allow us to reverse all, or a portion of, our valuation allowance in the future. |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure | 17. Segment Reporting ASC Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2014; senior housing facility in September 2014; hospital in December 2014; senior housing — RIDEA portfolio in May 2015; skilled nursing facilities in October 2015; and integrated senior health campuses in December 2015, we established a new reportable business segment at such time. As of September 30, 2018, we evaluated our business and made resource allocations based on six reportable business segments: medical office buildings, hospitals, skilled nursing facilities, senior housing, senior housing — RIDEA and integrated senior health campuses. Our medical office buildings are typically leased to multiple tenants under separate leases in each building, thus requiring active management and responsibility for many of the associated operating expenses (although many of these are, or can effectively be, passed through to the tenants). In addition, our medical office buildings segment includes the Mezzanine Notes. Our hospital investments are primarily single-tenant properties that lease the facilities to unaffiliated tenants under triple-net and generally master leases that transfer the obligation for all facility operating costs (including maintenance, repairs, taxes, insurance and capital expenditures) to the tenant. Our skilled nursing facilities and senior housing facilities are similarly structured as our hospital investments. In addition, our senior housing segment includes our debt security investment. Our senior housing — RIDEA properties include senior housing facilities that are owned and operated utilizing a RIDEA structure. Our integrated senior health campuses include a range of assisted living, memory care, independent living, skilled nursing services and certain ancillary businesses. We evaluate performance based upon segment net operating income. We define segment net operating income as total revenues, less property operating expenses and rental expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses, interest expense, gain (loss) on disposition of real estate investments, impairment of real estate investments, foreign currency gain (loss), other income (expense), loss from unconsolidated entity and income tax benefit (expense) for each segment. We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment net operating income serves as an appropriate supplemental performance measure to net income (loss) because it allows investors and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. Interest expense, depreciation and amortization and other expenses not attributable to individual properties are not allocated to individual segments for purposes of assessing segment performance. Non-segment assets primarily consist of corporate assets including cash and cash equivalents, other receivables, deferred financing costs, interest rate swap assets and other assets not attributable to individual properties. Summary information for the reportable segments during the three and nine months ended September 30, 2018 and 2017 was as follows:
Total assets by reportable segment as of September 30, 2018 and December 31, 2017 were as follows:
As of both September 30, 2018 and December 31, 2017, goodwill of $75,309,000 was allocated to integrated senior health campuses and no other segments had goodwill. Our portfolio of properties and other investments are located in the United States, Isle of Man and the UK. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for our operations for the periods presented:
The following is a summary of real estate investments, net by geographic regions as of September 30, 2018 and December 31, 2017:
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Concentration of Credit Risk |
9 Months Ended |
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Sep. 30, 2018 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk | 18. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk are primarily real estate notes receivable and debt security investment, cash and cash equivalents, accounts and other receivables, restricted cash and real estate deposits. We are exposed to credit risk with respect to the real estate notes receivable and debt security investment, but we believe collection of the outstanding amount is probable. We believe that the risk is further mitigated as the real estate notes receivable are secured by property and there is a guarantee of completion agreement executed between the parent company of the borrowers and us. Cash and cash equivalents are generally invested in investment-grade, short-term instruments with a maturity of three months or less when purchased. We have cash and cash equivalents in financial institutions that are insured by the Federal Deposit Insurance Corporation, or FDIC. As of September 30, 2018 and December 31, 2017, we had cash and cash equivalents in excess of FDIC insured limits. We believe this risk is not significant. Concentration of credit risk with respect to accounts receivable from tenants is limited. We perform credit evaluations of prospective tenants and security deposits are obtained at the time of property acquisition and upon lease execution. Based on leases in effect as of September 30, 2018, properties in one state in the United States accounted for 10.0% or more of our total property portfolio’s annualized base rent or annualized net operating income. Properties located in Indiana accounted for 35.3% of our total property portfolio’s annualized base rent or annualized net operating income. Accordingly, there is a geographic concentration of risk subject to fluctuations in such state’s economy. Based on leases in effect as of September 30, 2018, our six reportable business segments, integrated senior health campuses, medical office buildings, senior housing — RIDEA, senior housing, skilled nursing facilities and hospitals accounted for 46.3%, 27.8%, 9.9%, 6.5%, 5.6% and 3.9%, respectively, of our total property portfolio’s annualized base rent or annualized net operating income. As of September 30, 2018, none of our tenants at our properties accounted for 10.0% or more of our total property portfolio’s annualized base rent or annualized net operating income, which is based on contractual base rent from leases in effect inclusive of our senior housing — RIDEA facilities and integrated senior health campuses operations as of September 30, 2018. |
Per Share Data |
9 Months Ended |
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Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Per Share Data | 19. Per Share Data We report earnings (loss) per share pursuant to ASC Topic 260, Earnings per Share. Basic earnings (loss) per share for all periods presented are computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of our common stock outstanding during the period. Net income (loss) applicable to common stock is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of $7,000 for both the three months ended September 30, 2018 and 2017, and $20,000 and $19,000, respectively, for the nine months ended September 30, 2018 and 2017. Diluted earnings (loss) per share are computed based on the weighted average number of shares of our common stock and all potentially dilutive securities, if any. Nonvested shares of our restricted common stock and redeemable limited partnership units of our operating partnership are participating securities and give rise to potentially dilutive shares of our common stock. As of September 30, 2018 and 2017, there were 47,500 and 46,000 nonvested shares, respectively, of our restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during these periods. As of September 30, 2018 and 2017, there were 222 units of redeemable limited partnership units of our operating partnership outstanding, but such units were also excluded from the computation of diluted earnings per share because such units were anti-dilutive during these periods. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Event Amended Trilogy JV Agreement On October 1, 2018, we entered into the Amended Trilogy JV Agreement as a result of the purchase by an indirect, wholly-owned subsidiary of the operating partnership of Griffin-American Healthcare REIT IV, Inc., or GAHR IV JV Member, of 6.0% of the total membership interests in Trilogy REIT Holdings from a wholly-owned subsidiary of NHI. Both Griffin-American Healthcare REIT IV, Inc. and us are sponsored by American Healthcare Investors. Therefore, effective October 1, 2018, NHI and GAHR IV JV Member indirectly own a 24.0% and 6.0% membership interest, respectively, in Trilogy REIT Holdings. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership, the wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries in which we have control, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810. We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries of which we have control, will own substantially all of the interests in properties acquired on our behalf. Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our accompanying condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation. |
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Interim Unaudited Financial Data | Interim Unaudited Financial Data Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 16, 2018. |
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Use of Estimates | Use of Estimates The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. |
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Revenue Recognition | Revenue Recognition Resident fees and services Prior to January 1, 2018, we recognized resident fees and services revenue in accordance with ASC Topic 605, Revenue Recognition, or ASC Topic 605. ASC Topic 605 requires that all four of the following basic criteria be met before revenue is realized or realizable and earned: (i) there is persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the seller’s price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. On January 1, 2018, we adopted ASC Topic 606, Revenue from Contracts with Customers, or ASC Topic 606, applying the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The adoption of ASC Topic 606 did not have a material impact on the measurement nor on the recognition of resident fees and services revenue as of January 1, 2018; therefore, no cumulative adjustment has been made to the opening balance of retained earnings at the beginning of 2018. A significant portion of resident fees and services revenue represents healthcare service revenue that is reported at the amount that reflects the consideration to which we expect to be entitled in exchange for providing patient care. These amounts are due from patients, third-party payors (including health insurers and government programs), other healthcare facilities, and others and includes variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations. Generally, we bill the patients, third-party payors and other healthcare facilities several days after the services are performed. Revenue is recognized as performance obligations are satisfied. Performance obligations are determined based on the nature of the services provided by us. Revenue for performance obligations satisfied over time is recognized based on actual charges incurred in relation to total expected (or actual) charges. This method provides a depiction of the transfer of services over the term of the performance obligation based on the inputs needed to satisfy the obligation. Generally, performance obligations satisfied over time relate to patients in our integrated senior health campuses receiving long-term healthcare services, including rehabilitation services. We measure the performance obligation from admission into the integrated senior health campus to the point when we are no longer required to provide services to that patient. Revenue for performance obligations satisfied at a point in time is recognized when goods or services are provided and we do not believe it is required to provide additional goods or services to the patient. Generally, performance obligations satisfied at a point in time relate to sales of our pharmaceuticals business or to sales of ancillary supplies. Because all of its performance obligations relate to contracts with a duration of less than one year, we have elected to apply the optional exemption provided in FASB ASC 606-10-50-14(a) and, therefore, are not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The performance obligations for these contracts are generally completed within months of the end of the reporting period. We determine the transaction price based on standard charges for goods and services provided, reduced, where applicable, by contractual adjustments provided to third-party payors, implicit price concessions provided to uninsured patients, and estimates of goods to be returned. We also determine the estimates of contractual adjustments based on Medicare and Medicaid pricing tables and historical experience. We determine the estimate of implicit price concessions based on the historical collection experience with each class of payor. Agreements with third-party payors typically provide for payments at amounts less than established charges. A summary of the payment arrangements with major third-party payors follows:
Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. As a result of investigations by governmental agencies, various healthcare organizations have received requests for information and notices regarding alleged noncompliance with those laws and regulations, which, in some instances, have resulted in organizations entering into significant settlement agreements. Compliance with such laws and regulations may also be subject to future government review and interpretation as well as significant regulatory action, including fines, penalties and potential exclusion from the related programs. There can be no assurance that regulatory authorities will not challenge our compliance with these laws and regulations, and it is not possible to determine the impact (if any) such claims or penalties would have upon us. Settlements with third-party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. These settlements are estimated based on the terms of the payment agreement with the payor, correspondence from the payor and our historical settlement activity, including an assessment to ensure that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the retroactive adjustment is subsequently resolved. Estimated settlements are adjusted in future periods as adjustments become known (that is, new information becomes available), or as years are settled or are no longer subject to such audits, reviews and investigations. Adjustments arising from a change in the transaction price were not significant for the three and nine months ended September 30, 2018. In accordance with the disclosure requirements of the new revenue standard, the impact of the adoption of ASC Topic 606 on our condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 were as follows:
In accordance with the disclosure requirements of the new revenue standard, the impact of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of September 30, 2018 was as follows:
The change in reported balances is primarily based on the fact that substantially all of the amounts recorded to bad debt expense pursuant to our previous accounting policy in accordance with ASC Topic 605 are now recorded as direct reductions of resident fees and services revenue as contractual adjustments provided to third-party payors or implicit price concessions pursuant to the new revenue standard, ASC Topic 606. Disaggregation of Resident Fees and Services Revenue We disaggregate revenue from contracts with customers according to lines of business and payor classes. The transfer of goods and services may occur at a point in time or over time; in other words, revenue may be recognized over the course of the underlying contract, or may occur at a single point in time based upon a single transfer of control. This distinction is discussed in further detail below. We determine that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table disaggregates our resident fees and services revenue by line of business, according to whether such revenue is recognized at a point in time or over time:
The following table disaggregates our resident fees and services revenue by payor class:
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Accounts Receivable, Net — Resident Fees and Services The beginning and ending balances of accounts receivable, net — resident fees and services are as follows:
Deferred Revenue — Resident Fees and Services The beginning and ending balances of deferred revenue — resident fees and services, all of which relates to private and other payors, are as follows:
All amounts included in the beginning balance of deferred revenue — resident fees and services at January 1, 2018 were recognized as revenue during the nine months ended September 30, 2018. Financing Component We have elected the practical expedient allowed under FASB ASC 606-10-32-18 and, therefore, we do not adjust the promised amount of consideration from patients and third-party payors for the effects of a significant financing component due to our expectation that the period between the time the service is provided to a patient and the time that the patient or a third-party payor pays for that service will be one year or less. Contract Costs We have applied the practical expedient provided by FASB ASC 340-40-25-4 and, therefore, all incremental customer contract acquisition costs are expensed as they are incurred since the amortization period of the asset that we otherwise would have recognized is one year or less in duration. |
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Recently Issued or Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update, or ASU, 2016-02, Leases, or ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606. In addition, ASU 2016-02 provides a practical expedient that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We plan to elect this practical expedient. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, or ASU 2018-10, and ASU 2018-11, Leases (Topic 842) Targeted Improvements, or ASU 2018-11, which update the guidance on accounting for leases under ASU 2016-02. ASU 2018-10 was issued to increase stockholders’ awareness of narrow aspects of the guidance issued in the amendments and to expedite the improvements under ASU 2016-02. ASU 2018-11 provides (a) an alternative transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the modified retrospective transition method prescribed by ASU 2016-02, which requires application of the new leases standard at the beginning of the earliest period presented in the financial statements for comparative purposes; and (b) a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. We plan to elect this practical expedient and transition method. We completed a preliminary assessment of predominance for our medical office buildings, senior housing, skilled nursing facilities and hospitals segments and, effective upon the adoption of ASU 2016-02 (codified under ASC Topic 842), we expect to recognize revenue from these segments under ASC Topic 842. We are still in the process of completing our preliminary assessment related to senior housing — RIDEA. We plan to finalize our assessment for all segments during the fourth quarter of 2018. ASU 2016-02, ASU 2018-10 and ASU 2018-11 are effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. As a result of the adoption of the new leases standard on January 1, 2019, we: (i) will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets; and (ii) may be required to increase our revenue and expense for the amount of real estate taxes and insurance paid by our tenants under triple-net leases; however, we are still evaluating the complete impact of the adoption of the new leases standard and its related expedients, in addition to the transition method, on January 1, 2019 to our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, or ASU 2018-02, which amends the reclassification requirements from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017, or the Tax Act. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2018-02 on January 1, 2019 to have a material impact on our consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, Amendments to the SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, or ASU 2018-05, which updates the income tax accounting in GAAP to reflect the SEC’s interpretive guidance with regards to the Tax Act. We adopted ASU 2018-05 in March 2018, which did not have a material impact on our consolidated financial statements. See Note 16, Income Taxes, for a further discussion. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13, which modifies the disclosure requirements in ASC Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We are currently evaluating this guidance to determine the impact of ASU 2018-13 on our disclosures. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impact of Adoption of New Accounting Pronouncement | In accordance with the disclosure requirements of the new revenue standard, the impact of the adoption of ASC Topic 606 on our condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 were as follows:
In accordance with the disclosure requirements of the new revenue standard, the impact of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of September 30, 2018 was as follows:
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Schedule of Disaggregation of Revenue | The following table disaggregates our resident fees and services revenue by line of business, according to whether such revenue is recognized at a point in time or over time:
The following table disaggregates our resident fees and services revenue by payor class:
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Schedule of Receivables and Deferred Revenue - Resident Fees and Services | Accounts Receivable, Net — Resident Fees and Services The beginning and ending balances of accounts receivable, net — resident fees and services are as follows:
Deferred Revenue — Resident Fees and Services The beginning and ending balances of deferred revenue — resident fees and services, all of which relates to private and other payors, are as follows:
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Real Estate Investments, Net (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments, Net | Our real estate investments, net consisted of the following as of September 30, 2018 and December 31, 2017:
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Summary Of Acquisitions | The following is a summary of our property acquisition for the nine months ended September 30, 2018:
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Summary of Acquisitions of Previously Leased Real Estate Investments | The following is a summary of such acquisition for the nine months ended September 30, 2018, which is included in our integrated senior health campuses segment:
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Schedule of Asset Acquisitions, by Acquisition | The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our property acquisitions in 2018 based on their relative fair values:
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Real Estate Notes Receivable and Debt Security Investment, Net (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Notes Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Notes Receivable, Net | The following is a summary of our notes receivable and debt security investment, including unamortized loan and closing costs, net as of September 30, 2018 and December 31, 2017:
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Changes in Carrying Amount of Real Estate Notes Receivable | The following table reflects the changes in the carrying amount of real estate notes receivable and debt security investment, net for the nine months ended September 30, 2018 and 2017:
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Identified Intangible Assets, Net (Tables) |
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Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Identified intangible assets, net | Identified intangible assets, net consisted of the following as of September 30, 2018 and December 31, 2017:
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Amortization expense on identified intangible assets | As of September 30, 2018, estimated amortization expense of the identified intangible assets for the three months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:
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Other Assets, Net (Tables) |
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Net | Other assets, net consisted of the following as of September 30, 2018 and December 31, 2017:
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Summarized Financial Information of Unconsolidated Entity | The following is summarized financial information of RHS:
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Mortgage Loans Payable, Net (Tables) |
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SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Payable, Net | Mortgage loans payable, net consisted of the following as of September 30, 2018 and December 31, 2017:
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Schedule of Activity Related to Mortgage Loans Payable | The following table reflects the changes in the carrying amount of mortgage loans payable, net for the nine months ended September 30, 2018 and 2017:
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Principal Payments Due on Mortgage Loans Payable | As of September 30, 2018, the principal payments due on our mortgage loans payable for the three months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter were as follows:
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Derivative Financial Instruments (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table lists the derivative financial instruments held by us as of September 30, 2018 and December 31, 2017:
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Identified Intangible Liabilities, Net (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Identified Intangible Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortization Expense on Below Market Leases | As of September 30, 2018, estimated amortization expense of below-market leases for the three months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:
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Redeemable Noncontrolling Interest (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the nine months ended September 30, 2018 and 2017:
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Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss, net of noncontrolling interests, by component consisted of the following for the nine months ended September 30, 2018 and 2017:
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Amounts Outstanding To Affiliates Table | The following amounts were outstanding to our affiliates as of September 30, 2018 and December 31, 2017:
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents our assets and liabilities measured at fair value on a recurring basis as of September 30, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:
The table below presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:
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Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of such financial instruments as of September 30, 2018 and December 31, 2017 were as follows:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loss before Income Tax, Domestic and Foreign | The components of income (loss) before taxes for the three and nine months ended September 30, 2018 and 2017 were as follows:
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Schedule of Components of Income Tax Expense (Benefit) | The components of income tax benefit for the three and nine months ended September 30, 2018 and 2017 were as follows:
|
Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information by Reportable Segment | Summary information for the reportable segments during the three and nine months ended September 30, 2018 and 2017 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets by Reportable Segment | ssets by reportable segment as of September 30, 2018 and December 31, 2017 were as follows:
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Revenue and Real Estate Investments by Geographical Areas | The following is a summary of geographic information for our operations for the periods presented:
The following is a summary of real estate investments, net by geographic regions as of September 30, 2018 and December 31, 2017:
|
Organization and Description of Business (Detail) ft² in Thousands |
9 Months Ended | 14 Months Ended | 41 Months Ended | 46 Months Ended | 55 Months Ended | 69 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
ft²
segment
|
Feb. 26, 2014
USD ($)
|
Sep. 30, 2018
USD ($)
ft²
segment
|
Sep. 30, 2017
USD ($)
|
Apr. 21, 2015
USD ($)
shares
|
Sep. 30, 2018
USD ($)
ft²
shares
|
Dec. 31, 2017
USD ($)
shares
|
Sep. 30, 2018
USD ($)
ft²
shares
|
Sep. 30, 2018
USD ($)
ft²
Building
Property
Campus
|
Sep. 30, 2018
ft²
|
Mar. 25, 2015
USD ($)
|
|
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Date of inception | Jan. 11, 2013 | ||||||||||
Date of capitalization | Jan. 15, 2013 | ||||||||||
Maximum dollar amount of common stock issuable under public offering | $ 1,900,000,000 | ||||||||||
Issuance of common stock under the DRIP | $ 45,444,000 | $ 47,453,000 | $ 189,681,000 | $ 235,125,000 | |||||||
Issuance of common stock under the DRIP, shares | shares | 20,355,578 | 25,257,815 | |||||||||
Advisory agreement term | 1 year | ||||||||||
Advisory agreement renewal term | 1 year | ||||||||||
Number of reportable segments | segment | 6 | 6 | |||||||||
Number of properties acquired from unaffiliated parties | Property | 97 | ||||||||||
Number of buildings acquired from unaffiliated parties | Building | 101 | ||||||||||
Number of integrated senior health campuses acquired from unaffiliated parties | Campus | 111 | ||||||||||
GLA (Sq Ft) | ft² | 13,132 | 13,132 | 13,132 | 13,132 | 13,132 | 13,132 | |||||
Acquisition aggregate cost of acquired properties purchase price, net of dispositions | $ 2,933,369,000 | ||||||||||
Acquisition aggregate cost of acquired real estate related investments purchase price, net of principal repayments | $ 90,878,000 | ||||||||||
American Healthcare Investors [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Ownership percentage in affiliate | 47.10% | 47.10% | 47.10% | 47.10% | 47.10% | 47.10% | |||||
Colony Capital, Inc. [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Ownership percentage in affiliate | 45.10% | 45.10% | 45.10% | 45.10% | 45.10% | 45.10% | |||||
James F. Flaherty III [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Ownership percentage in affiliate | 7.80% | 7.80% | 7.80% | 7.80% | 7.80% | 7.80% | |||||
American Healthcare Investors [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Ownership percentage in affiliate | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | |||||
Griffin Capital Corporation [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Ownership percentage in affiliate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||||
Common Stock | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Subscriptions in offering of common stock received and accepted shares | shares | 184,930,598 | ||||||||||
Subscriptions in offering of common stock received and accepted value | $ 1,842,618,000 | ||||||||||
DRIP [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Subscriptions in offering of common stock received and accepted shares | shares | 1,948,563 | ||||||||||
Subscriptions in offering of common stock received and accepted value | $ 18,511,000 | ||||||||||
DRIP S-3 Public Offering [Member] | |||||||||||
Schedule of Capitalization, Equity [Line Items] | |||||||||||
Maximum dollar amount of common stock issuable under public offering | $ 250,000,000 | ||||||||||
Issuance of common stock under the DRIP | $ 216,614,000 | ||||||||||
Issuance of common stock under the DRIP, shares | shares | 23,309,252 |
Summary of Significant Accounting Policies (Detail) - USD ($) |
9 Months Ended | 60 Months Ended | 69 Months Ended | |
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Sep. 30, 2018 |
|
Percentage of ownership in operating partnership | 99.99% | 99.99% | ||
Percentage of limited partnership interest | 0.01% | 0.01% | ||
Insurance payable | $ 29,651,000 | $ 27,208,000 | $ 29,651,000 | |
Payroll related costs | 25,940,000 | 23,737,000 | 25,940,000 | |
Accrued property taxes | 16,962,000 | 13,406,000 | 16,962,000 | |
Accrued capital expenditures | 15,124,000 | 5,988,000 | 15,124,000 | |
Accrued distributions | 9,875,000 | $ 9,830,000 | $ 10,192,000 | $ 9,875,000 |
Borrowings under the lines of credit and term loans | 206,664,000 | 269,473,000 | ||
Payments on the lines of credit and term loans | $ (132,716,000) | (325,756,000) | ||
Removed from statement of cash flows [Member] | ||||
Borrowings under the lines of credit and term loans | (495,102,000) | |||
Payments on the lines of credit and term loans | $ 495,102,000 |
Summary of Significant Accounting Policies - Impact of Adoption of New Accounting Pronouncement (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Resident fees and services | $ 251,884 | $ 230,768 | $ 744,859 | $ 682,300 | |||
Property operating expenses | 223,665 | 199,047 | 659,295 | 596,099 | |||
General and administrative | 6,900 | 9,270 | 19,910 | 24,642 | |||
Net income | 3,824 | $ 4,461 | 12,931 | $ (1,543) | |||
Assets | |||||||
Other assets, net | 110,970 | 110,970 | $ 99,020 | ||||
Liabilities | |||||||
Accounts payable and accrued liabilities | [1] | 136,821 | 136,821 | 124,503 | |||
Equity | |||||||
Accumulated deficit | (676,166) | (676,166) | $ (598,044) | ||||
Accounting Standards Update 2014-09 [Member] | Balances Without Adoption of ASC Topic 606 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Resident fees and services | 253,397 | 749,860 | |||||
Property operating expenses | 223,586 | 659,395 | |||||
General and administrative | 8,533 | 24,761 | |||||
Net income | 3,783 | 12,981 | |||||
Assets | |||||||
Other assets, net | 110,870 | 110,870 | |||||
Liabilities | |||||||
Accounts payable and accrued liabilities | 136,671 | 136,671 | |||||
Equity | |||||||
Accumulated deficit | (676,116) | (676,116) | |||||
Accounting Standards Update 2014-09 [Member] | Effect of Change (Lower)/Higher | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Resident fees and services | (1,513) | (5,001) | |||||
Property operating expenses | 79 | (100) | |||||
General and administrative | (1,633) | (4,851) | |||||
Net income | 41 | (50) | |||||
Assets | |||||||
Other assets, net | 100 | 100 | |||||
Liabilities | |||||||
Accounts payable and accrued liabilities | 150 | 150 | |||||
Equity | |||||||
Accumulated deficit | $ (50) | $ (50) | |||||
|
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | $ 251,884 | $ 230,768 | $ 744,859 | $ 682,300 |
Integrated Senior Health Campuses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 235,605 | 214,555 | 696,187 | 634,252 |
Senior Housing-RIDEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 16,279 | $ 16,213 | 48,672 | $ 48,048 |
Resident Fees and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 251,884 | 744,859 | ||
Resident Fees and Services [Member] | Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 47,360 | 138,679 | ||
Resident Fees and Services [Member] | Over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 204,524 | 606,180 | ||
Resident Fees and Services [Member] | Medicare [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 75,530 | 208,524 | ||
Resident Fees and Services [Member] | Medicaid [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 43,112 | 124,334 | ||
Resident Fees and Services [Member] | Private and Other Payors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 133,242 | 412,001 | ||
Resident Fees and Services [Member] | Integrated Senior Health Campuses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 235,605 | 696,187 | ||
Resident Fees and Services [Member] | Integrated Senior Health Campuses [Member] | Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 46,525 | 136,347 | ||
Resident Fees and Services [Member] | Integrated Senior Health Campuses [Member] | Over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 189,080 | 559,840 | ||
Resident Fees and Services [Member] | Integrated Senior Health Campuses [Member] | Medicare [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 75,530 | 208,524 | ||
Resident Fees and Services [Member] | Integrated Senior Health Campuses [Member] | Medicaid [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 43,101 | 124,320 | ||
Resident Fees and Services [Member] | Integrated Senior Health Campuses [Member] | Private and Other Payors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 116,974 | 363,343 | ||
Resident Fees and Services [Member] | Senior Housing-RIDEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 16,279 | 48,672 | ||
Resident Fees and Services [Member] | Senior Housing-RIDEA [Member] | Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 835 | 2,332 | ||
Resident Fees and Services [Member] | Senior Housing-RIDEA [Member] | Over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 15,444 | 46,340 | ||
Resident Fees and Services [Member] | Senior Housing-RIDEA [Member] | Medicare [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 0 | 0 | ||
Resident Fees and Services [Member] | Senior Housing-RIDEA [Member] | Medicaid [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | 11 | 14 | ||
Resident Fees and Services [Member] | Senior Housing-RIDEA [Member] | Private and Other Payors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Resident fees and services | $ 16,268 | $ 48,658 |
Summary of Significant Accounting Policies - Accounts Receivable and Deferred Revenue (Details) - Resident Fees and Services [Member] - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Jan. 01, 2018 |
|
Accounts Receivable, Net - Resident Fees and Services | ||
Accounts Receivable, Net - Resident Fees and Services | $ 89,104 | $ 81,325 |
Increase/(decrease) | 7,779 | |
Deferred Revenue - Resident fees and Services | ||
Deferred Revenue | 10,765 | 9,801 |
Increase | 964 | |
Medicare [Member] | ||
Accounts Receivable, Net - Resident Fees and Services | ||
Accounts Receivable, Net - Resident Fees and Services | 31,501 | 29,979 |
Increase/(decrease) | 1,522 | |
Medicaid [Member] | ||
Accounts Receivable, Net - Resident Fees and Services | ||
Accounts Receivable, Net - Resident Fees and Services | 15,257 | 15,640 |
Increase/(decrease) | (383) | |
Private and Other Payors [Member] | ||
Accounts Receivable, Net - Resident Fees and Services | ||
Accounts Receivable, Net - Resident Fees and Services | 42,346 | $ 35,706 |
Increase/(decrease) | $ 6,640 |
Real Estate Investments, Net - Investments in Consolidated Properties (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | $ 2,444,475 | $ 2,336,208 |
Less: accumulated depreciation | (233,709) | (172,950) |
Real estate investments, net | 2,210,766 | 2,163,258 |
Building, improvements and construction in process [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | 2,139,126 | 2,058,312 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | 185,902 | 177,999 |
Furniture, fixtures and equipment [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | $ 119,447 | $ 99,897 |
Real Estate Investments, Net - Additional Information (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
Property
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
Property
|
Sep. 30, 2017
USD ($)
Property
|
|
Real Estate Properties [Line Items] | ||||
Depreciation | $ 20,636 | $ 20,611 | $ 61,323 | $ 61,453 |
Impairment of real estate investments | 0 | $ 0 | 2,542 | $ 4,883 |
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | ||
Integrated Senior Health Campuses [Member] | ||||
Real Estate Properties [Line Items] | ||||
Capital expenditures incurred | 20,416 | 48,282 | ||
Medical Office Building [Member] | ||||
Real Estate Properties [Line Items] | ||||
Capital expenditures incurred | 2,047 | 5,590 | ||
Senior Housing-RIDEA [Member] | ||||
Real Estate Properties [Line Items] | ||||
Capital expenditures incurred | 768 | 1,283 | ||
Hospitals [Member] | ||||
Real Estate Properties [Line Items] | ||||
Capital expenditures incurred | 10 | 57 | ||
Senior Housing [Member] | ||||
Real Estate Properties [Line Items] | ||||
Capital expenditures incurred | 0 | 0 | ||
Skilled Nursing Facilities [Member] | ||||
Real Estate Properties [Line Items] | ||||
Capital expenditures incurred | $ 0 | $ 459 | ||
Medical Office Building [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of properties impaired | Property | 0 | 1 | ||
Impairment of real estate investments | $ 0 | $ 2,542 | ||
Carrying value of investment | $ 7,387 | $ 7,387 | ||
Integrated Senior Health Campus [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of properties impaired | Property | 2 | |||
Impairment of real estate investments | $ 4,883 | |||
Carrying value of investment | $ 990 | $ 990 |
Real Estate Investments, Net - Acquisitions (Detail) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Aug. 30, 2018 |
Jul. 20, 2018 |
Apr. 17, 2018 |
Sep. 30, 2018 |
|
2018 Acquisitions [Member] | North Carolina ALF Portfolio - Matthews [Member] | ||||
Real Estate Properties [Line Items] | ||||
Type | Senior Housing | |||
Date Acquired | Aug. 30, 2018 | |||
Contract Purchase Price | $ 15,000 | |||
Lines of Credit and Term Loans | 13,500 | |||
Acquisition Fees | $ 338 | |||
Ownership percentage | 100.00% | |||
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% | |||
2018 Acquisitions [Member] | Land [Member] | ||||
Real Estate Properties [Line Items] | ||||
Contract Purchase Price | $ 300 | |||
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% | |||
Acquisition fees paid | $ 7 | |||
2018 Acquisitions, Previously Leased [Member] [Member] | Lexington, KY; Novi and Romeo, MI; and Fremont, OH [Member] | ||||
Real Estate Properties [Line Items] | ||||
Date Acquired | Jul. 20, 2018 | |||
Contract Purchase Price | $ 47,455 | |||
Mortgage Loan Payable | 47,500 | |||
Acquisition Fees | 723 | |||
Ownership percentage | 67.70% | |||
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% | |||
Integrated Senior Health Campuses [Member] | ||||
Real Estate Properties [Line Items] | ||||
Total completed development cost | $ 3,834 |
Real Estate Investments, Net - Assets and Liabilities Acquired (Details) - 2018 Acquisitions [Member] $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Real Estate Properties [Line Items] | |
Closing costs and direct acquisition related expenses capitalized | $ 2,936 |
Building and improvements | 49,759 |
Land | 7,725 |
In-place leases | 6,894 |
Certificates of need | 1,313 |
Total assets acquired | $ 65,691 |
Real Estate Notes Receivable and Debt Security Investment, Net - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Oct. 15, 2015 |
|
Real Estate Notes Receivable and Investment, Net | ||||||
Investment | $ 69,198,000 | $ 69,198,000 | $ 67,275,000 | |||
Impairment of real estate notes receivable and investment | 0 | $ 0 | 0 | $ 0 | ||
Amortization of deferred loan origination fees, net | $ 64,000 | $ 57,000 | $ 185,000 | $ 164,000 | ||
Debt security investment [Member] | ||||||
Real Estate Notes Receivable and Investment, Net | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.24% | |||||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | $ 93,433,000 | |||||
Yield to Maturity Interest Rate | 10.00% | |||||
Beneficial ownership interest in Mortgage Trust | 10.00% | 10.00% |
Real Estate Notes Receivable and Debt Security Investment, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Real Estate Notes Receivable and Investment, Net | |||||
Real Estate Notes Receivable And Investment | $ 98,097 | $ 98,097 | $ 96,087 | ||
Unamortized loan and closing costs, net | 1,716 | 1,716 | 1,901 | ||
Real Estate Loans Receivable [Roll Forward] | |||||
Beginning balance | 97,988 | $ 101,117 | |||
Accretion on debt security | 2,010 | 1,821 | |||
Principal repayments on real estate notes receivable | 0 | (2,641) | |||
Amortization of loan and closing costs | (64) | $ (57) | (185) | (164) | |
Ending balance | 99,813 | $ 100,133 | $ 99,813 | $ 100,133 | |
Mezzanine Fixed Rate Notes [Member] | |||||
Real Estate Notes Receivable and Investment, Net | |||||
Origination Date | Feb. 04, 2015 | ||||
Maturity date | Dec. 09, 2019 | ||||
Contractual Interest Rate | 6.75% | ||||
Maximum Advances Available | 28,650 | $ 28,650 | |||
Real Estate Notes Receivable And Investment | 28,650 | $ 28,650 | 28,650 | ||
Mezzanine Floating Rate Notes [Member] | |||||
Real Estate Notes Receivable and Investment, Net | |||||
Origination Date | Feb. 04, 2015 | ||||
Maturity date | Dec. 09, 2018 | ||||
Contractual Interest Rate | 8.39% | ||||
Maximum Advances Available | 31,567 | $ 31,567 | |||
Real Estate Notes Receivable And Investment | 1,799 | $ 1,799 | 1,799 | ||
Debt security investment [Member] | |||||
Real Estate Notes Receivable and Investment, Net | |||||
Origination Date | Oct. 15, 2015 | ||||
Maturity date | Aug. 25, 2025 | ||||
Contractual Interest Rate | 4.24% | ||||
Real Estate Notes Receivable And Investment | $ 67,648 | $ 67,648 | $ 65,638 |
Identified Intangible Assets, Net - Summary of Identified Intangibles, Net (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 61,839 | |
Identified intangible assets, net | $ 180,317 | $ 180,308 |
Weighted average remaining life | 15 years 1 month 6 days | 15 years 6 months 18 days |
Certificates Of Need [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | $ 85,773 | $ 83,320 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 30,787 | 30,787 |
Purchase Option Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 1,918 | 1,918 |
In-Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | 49,131 | 50,520 |
Accumulated amortization | $ 22,544 | $ 25,967 |
Weighted average remaining life | 9 years 7 months 6 days | 10 years 2 months 12 days |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 7,382 | $ 7,487 |
Accumulated amortization | $ 512 | $ 407 |
Weighted average remaining life | 53 years 10 months 24 days | 54 years 7 months 6 days |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 2,691 | $ 2,803 |
Accumulated amortization | $ 149 | $ 37 |
Weighted average remaining life | 19 years | 19 years 9 months 18 days |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 2,259 | $ 3,026 |
Accumulated amortization | $ 2,807 | $ 3,335 |
Weighted average remaining life | 5 years 2 months 12 days | 5 years 2 months 12 days |
Internally Developed Technology and Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 376 | $ 447 |
Accumulated amortization | $ 94 | $ 23 |
Weighted average remaining life | 4 years | 4 years 9 months 18 days |
Identified Intangible Assets, Net - Summary of Identified Intangibles, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 3,227 | $ 7,205 | $ 9,204 | $ 27,761 |
Above Market Leases [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 210 | 329 | 766 | 1,056 |
Leasehold Interests [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 34 | $ 35 | $ 105 | $ 106 |
Identified Intangible Assets, Net - Summary of Amortization Expense on Identified Intangible Assets, Net (Detail) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
2018 | $ 3,500 |
2019 | 10,211 |
2020 | 6,142 |
2021 | 5,569 |
2022 | 4,849 |
Thereafter | 31,568 |
Amortized intangible assets | $ 61,839 |
Other Assets, Net - Other Assets, Net (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Other Assets [Abstract] | ||
Prepaid expenses, deposits and other assets | $ 31,908 | $ 21,796 |
Deferred rent receivables | 22,418 | 17,458 |
Inventory | 16,790 | 19,311 |
Investment in unconsolidated entity(1) | 15,586 | 17,259 |
Deferred tax asset, net | 8,594 | 6,882 |
Lease commissions, net of accumulated amortization of $1,080,000 and $606,000 as of September 30, 2018 and December 31, 2017, respectively | 8,110 | 5,426 |
Lease inducement, net of accumulated amortization of $702,000 and $439,000 as of September 30, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 12.3 years and 13.0 years as of September 30, 2018 and December 31, 2017, respectively) | 4,298 | 4,561 |
Deferred financing costs, net of accumulated amortization of $11,428,000 and $7,850,000 as of September 30, 2018 and December 31, 2017, respectively(3) | 3,266 | 6,327 |
Other assets, net | 110,970 | 99,020 |
Accumulated amortization of lease commissions | 1,080 | 606 |
Accumulated amortization of lease inducements | 702 | 439 |
Accumulated amortization of deferred financing costs | $ 11,428 | $ 7,850 |
Weighted average remaining life of lease inducements | 12 years 3 months 18 days | 13 years |
Other Assets, Net - Additional Information (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
Campus
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
Campus
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017 |
|
Other Assets [Abstract] | |||||
Number of senior health campuses | Campus | 16 | 16 | |||
Amortization expense on lease commissions | $ 197 | $ 127 | $ 534 | $ 306 | |
Amortization of deferred lease inducements | 88 | 88 | 263 | 263 | |
Amortization expense on deferred financing costs | $ 981 | $ 978 | $ 3,578 | $ 2,828 | |
Unconsolidated Entity | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage in affiliate | 33.80% | 33.80% | 33.80% | ||
Due from unconsolidated entity | $ 2,705 | $ 2,705 |
Other Assets, Net - Unconsolidated Entity Financial Information (Details) - Unconsolidated Entity - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Balance Sheet Data: | |||||
Total assets | $ 47,473,000 | $ 47,473,000 | $ 48,176,000 | ||
Total liabilities | 24,037,000 | 24,037,000 | $ 21,395,000 | ||
Statement of Operations Data: | |||||
Revenues | 32,346,000 | $ 32,305,000 | 96,516,000 | $ 96,018,000 | |
Expenses | 34,622,000 | 35,292,000 | 103,861,000 | 103,353,000 | |
Net loss | $ (2,276,000) | $ (2,987,000) | $ (7,345,000) | $ (7,335,000) |
Mortgage Loans Payable, Net - Additional Information (Detail) $ in Thousands |
Sep. 30, 2018
USD ($)
MortgageLoan
|
Dec. 31, 2017
USD ($)
MortgageLoan
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
||||
---|---|---|---|---|---|---|---|---|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans payable, gross | $ | $ 711,978 | $ 636,329 | ||||||
Mortgage loans payable, net | $ | $ 686,954 | [1] | $ 613,558 | [1] | $ 615,346 | $ 495,717 | ||
Number of fixed rate mortgage loans payable | MortgageLoan | 57 | 47 | ||||||
Number Of Variable Rate Mortgage Loans Payable | MortgageLoan | 5 | 4 | ||||||
Mortgage Loans Payable, Net | ||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt, weighted average interest rate | 3.94% | 4.02% | ||||||
Minimum [Member] | ||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.45% | 2.45% | ||||||
Maximum [Member] | ||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.07% | 7.57% | ||||||
Revolving Credit Facility [Member] | Trilogy Propco Line Of Credit [Member] | ||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt, weighted average interest rate | 6.16% | 5.39% | ||||||
|
Mortgage Loans Payable, Net - Mortgage Loans Payable (Detail) - USD ($) $ in Thousands |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||
Debt Instrument: | ||||||
Total debt | $ 711,978 | $ 636,329 | ||||
Deferred finance costs, net | (3,266) | (6,327) | ||||
Add: premium | 752 | 1,176 | ||||
Less: discount | (16,868) | (17,657) | ||||
Change in Carrying Amount of Mortgage Loans Payable [Roll Forward] | ||||||
Beginning balance | 613,558 | [1] | $ 495,717 | |||
Borrowings under mortgage loans payable | 177,637 | 230,452 | ||||
Amortization of deferred financing costs | 995 | 2,060 | ||||
Amortization of discount/premium on mortgage loans payable | 365 | 858 | ||||
Scheduled principal payments on mortgage loans payable | (7,539) | (6,110) | ||||
Settlements of mortgage loans payable | (94,449) | (102,815) | ||||
Deferred financing costs | (3,613) | (4,816) | ||||
Ending balance | 686,954 | [1] | $ 615,346 | |||
Fixed Rate Debt | ||||||
Debt Instrument: | ||||||
Total debt | 626,628 | 526,503 | ||||
Variable Rate Debt | ||||||
Debt Instrument: | ||||||
Total debt | 85,350 | 109,826 | ||||
Mortgage Loans Payable, Net | ||||||
Debt Instrument: | ||||||
Deferred finance costs, net | $ (8,908) | $ (6,290) | ||||
|
Mortgage Loans Payable - Principal Payments Due on Mortgage Loans Payable (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||
2018 | $ 2,793 | |
2019 | 11,611 | |
2020 | 82,849 | |
2021 | 37,387 | |
2022 | 61,083 | |
Thereafter | 516,255 | |
Total | $ 711,978 | $ 636,329 |
Lines of Credit and Term Loans (Detail) |
Apr. 27, 2018
USD ($)
|
Oct. 27, 2017
USD ($)
|
Aug. 03, 2017
USD ($)
|
Mar. 21, 2016
USD ($)
Extension
|
Feb. 03, 2016
USD ($)
Extension
|
Feb. 02, 2016 |
Dec. 01, 2015
USD ($)
|
Sep. 30, 2018
USD ($)
|
Apr. 26, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Oct. 26, 2017
USD ($)
|
Apr. 01, 2016
USD ($)
|
||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||||||||||||
Number of investment ratings Moody | 2 | |||||||||||||
Lines of credit and term loans | [1] | $ 698,073,000 | $ 624,125,000 | |||||||||||
2016 Corporate Term Loan Facility [Member] | Term Loan [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | |||||||||||||
2016 Corporate Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | |||||||||||||
Commitment fee percentage condition one | 0.30% | |||||||||||||
Line Of Credit Facility Average Daily Used Amount Percentage Condition One | 50.00% | |||||||||||||
Commitment fee percentage condition two | 0.20% | |||||||||||||
Line Of Credit Facility Average Daily Used Amount Percentage Condition Two | 50.00% | |||||||||||||
2016 Corporate Line Of Credit [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line Of Credit Facility, Potential Maximum Borrowing Capacity | $ 1,000,000,000 | |||||||||||||
Increase in borrowing capacity | $ 50,000,000 | |||||||||||||
Capitalization rate for any Real Property Asset (percent) | 8.75% | |||||||||||||
Debt Instrument, Maturity Date | Feb. 03, 2019 | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 550,000,000 | $ 550,000,000 | $ 550,000,000 | |||||||||||
Debt Instrument, Leverage Ratio | 40.00% | |||||||||||||
Line Of Credit Facility, Number Of Potential Extensions | Extension | 1 | |||||||||||||
Line Of Credit Facility, Potential Extension Term | 12 months | |||||||||||||
Line Of Credit Facility, Maximum Borrowing Capacity Increase | $ 500,000,000 | |||||||||||||
2016 Corporate Line Of Credit [Member] | Base Rate [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt Instrument, Base Rate, Percent | 0.00% | 0.00% | ||||||||||||
2016 Corporate Line Of Credit [Member] | Federal Funds Rate [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 0.50% | 0.50% | ||||||||||||
2016 Corporate Line Of Credit [Member] | One-Month Eurodollar [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 1.00% | 1.00% | ||||||||||||
2016 Corporate Line Of Credit [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt, weighted average interest rate | 4.08% | 3.23% | ||||||||||||
Current borrowing capacity | $ 250,000,000 | |||||||||||||
Lines of credit and term loans | $ 523,500,000 | $ 444,000,000 | ||||||||||||
2016 Corporate Line Of Credit [Member] | Standby Letters of Credit [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | |||||||||||||
2016 Corporate Line Of Credit [Member] | Swing Line Loan [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | |||||||||||||
Trilogy Propco Line Of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt, weighted average interest rate | 6.16% | 5.39% | ||||||||||||
Line Of Credit Facility, Increase Amount To Borrowing Capacity | $ 100,000,000 | |||||||||||||
Line Of Credit Facility, Potential Maximum Borrowing Capacity | $ 400,000,000 | |||||||||||||
Debt Instrument, Term | 4 years | |||||||||||||
Line of credit extension term | 1 year | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | $ 300,000,000 | $ 250,000,000 | $ 250,000,000 | $ 300,000,000 | |||||||||
Lines of credit and term loans | $ 159,518,000 | $ 179,376,000 | ||||||||||||
Trilogy Propco Line Of Credit [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 3.00% | |||||||||||||
Trilogy Propco Line Of Credit [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 4.00% | |||||||||||||
Trilogy OpCo Line Of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt, weighted average interest rate | 4.89% | 5.84% | ||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 2.75% | |||||||||||||
Debt Instrument, Maturity Date | Apr. 27, 2021 | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | $ 60,000,000 | $ 60,000,000 | ||||||||||
Lines of credit and term loans | $ 15,055,000 | $ 749,000 | ||||||||||||
Trilogy OpCo Line Of Credit [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line Of Credit Facility, Increase Amount To Borrowing Capacity | $ 18,000,000 | |||||||||||||
Line Of Credit Facility, Potential Maximum Borrowing Capacity | $ 60,000,000 | |||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||||||||
Line Of Credit Facility, Prepayment Fee, Percent | 1.00% | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 42,000,000 | |||||||||||||
Line Of Credit Facility, Number Of Potential Extensions | Extension | 1 | |||||||||||||
Increased line of credit facility maximum borrowing capacity | $ 60,000,000 | |||||||||||||
Trilogy OpCo Line Of Credit [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 1.75% | |||||||||||||
Trilogy OpCo Line Of Credit [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 2.75% | |||||||||||||
2016 Corporate Revolving Notes [Member] | Minimum [Member] | Eurodollar [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 0.925% | 1.55% | ||||||||||||
2016 Corporate Revolving Notes [Member] | Minimum [Member] | Base Rate [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 0.00% | 0.55% | ||||||||||||
2016 Corporate Revolving Notes [Member] | Maximum [Member] | Eurodollar [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 1.70% | 2.20% | ||||||||||||
2016 Corporate Revolving Notes [Member] | Maximum [Member] | Base Rate [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 0.70% | 1.20% | ||||||||||||
Term Notes [Member] | Minimum [Member] | Eurodollar [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 1.00% | 1.50% | ||||||||||||
Term Notes [Member] | Minimum [Member] | Base Rate [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 0.00% | 0.50% | ||||||||||||
Term Notes [Member] | Maximum [Member] | Eurodollar [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 1.95% | 2.10% | ||||||||||||
Term Notes [Member] | Maximum [Member] | Base Rate [Member] | Line of Credit [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Variable rate | 0.95% | 1.10% | ||||||||||||
Trilogy Borrowers [Member] | Trilogy Propco Line Of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||||||||||
|
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
(Loss) gain in fair value of derivative financial instruments | $ (750) | $ (59) | $ (1,127) | $ 44 |
Derivative Financial Instruments (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Derivative [Line Items] | ||
Notional Amount | $ 250,000 | |
Fair Value | 1,239 | $ 2,366 |
Swap, .82% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 140,000 | |
Index | one month LIBOR | |
Interest Rate | 0.82% | |
Maturity Date | Feb. 03, 2019 | |
Fair Value | $ 746 | 1,486 |
Swap, .78% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 60,000 | |
Index | one month LIBOR | |
Interest Rate | 0.78% | |
Maturity Date | Feb. 03, 2019 | |
Fair Value | $ 327 | 661 |
Swap, 1.39% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 50,000 | |
Index | one month LIBOR | |
Interest Rate | 1.39% | |
Maturity Date | Feb. 03, 2019 | |
Fair Value | $ 166 | $ 219 |
Identified Intangible Liabilities, Net - Summary of Identified Intangibles, Net (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Finite Lived Intangible Liabilities [Line Items] | |||||
Identified intangible liabilities, net | $ 1,192 | $ 1,192 | $ 1,568 | ||
Below Market Lease [Member] | |||||
Finite Lived Intangible Liabilities [Line Items] | |||||
Identified intangible liabilities, net | 1,192 | 1,192 | 1,568 | ||
Net of accumulated amortization | 1,142 | 1,142 | $ 1,135 | ||
Amortization expense | $ 107 | $ 146 | $ 376 | $ 518 | |
Weighted average remaining life | 4 years 6 months 52 days | 4 years 9 months 6 days |
Identified Intangible Liabilities, Net - Summary of Amortization Expense on Below Market Leases (Detail) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Intangible Liabilities [Abstract] | |
2018 | $ 106 |
2019 | 392 |
2020 | 263 |
2021 | 146 |
2022 | 97 |
Thereafter | 188 |
Finite Lived Intangible Liabilities Net | $ 1,192 |
Redeemable Noncontrolling Interest (Details) - USD ($) |
9 Months Ended | 60 Months Ended | 69 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 15, 2013 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Sep. 30, 2018 |
Dec. 01, 2015 |
|
Redeemable Noncontrolling Interest [Line Items] | ||||||
Contributions from noncontrolling interest | $ 2,000 | $ 4,470,000 | $ 8,304,000 | |||
Number of limited partnership units issued to non controlling | 222 | |||||
Percentage of ownership in operating partnership | 99.99% | 99.99% | ||||
Percentage of limited partnership interest | 0.01% | 0.01% | ||||
Changes in the carrying amount of redeemable noncontrolling interest [Roll Forward] | ||||||
Beginning balance | 32,435,000 | 31,507,000 | ||||
Additions | 535,000 | 975,000 | ||||
Reclassification from equity | 585,000 | 585,000 | ||||
Distributions | (497,000) | (384,000) | ||||
Repurchase of redeemable noncontrolling interest | (229,000) | (59,000) | ||||
Fair value adjustment to redemption value | 437,000 | 1,341,000 | ||||
Net income (loss) attributable to redeemable noncontrolling interests | 131,000 | (613,000) | ||||
Ending balance | $ 33,397,000 | $ 33,352,000 | $ 32,435,000 | $ 33,397,000 | ||
Trilogy Joint Venture [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Joint venture ownership interest | 70.00% | 70.00% | 70.00% | |||
Trilogy Investors, LLC [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Ownership percentage equity interest | 96.70% | 96.70% | 96.70% | 96.70% | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 3.30% | 3.30% | 3.30% |
Equity Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance Stockholders' Equity | $ 1,346,575 | $ 1,418,553 | ||
Net change in current period | $ (136) | $ 355 | (374) | 977 |
Ending balance Stockholders' Equity | 1,260,469 | 1,359,696 | 1,260,469 | 1,359,696 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance Stockholders' Equity | (1,971) | (3,029) | ||
Ending balance Stockholders' Equity | $ (2,345) | $ (2,052) | $ (2,345) | $ (2,052) |
Equity (Detail) |
3 Months Ended | 9 Months Ended | 14 Months Ended | 25 Months Ended | 34 Months Ended | 41 Months Ended | 46 Months Ended | 55 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 01, 2015 |
Feb. 26, 2014
USD ($)
$ / shares
|
Jan. 15, 2013
USD ($)
shares
|
Sep. 30, 2018
USD ($)
Anniversary
$ / shares
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2018
USD ($)
Anniversary
$ / shares
Rate
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Apr. 21, 2015
shares
|
Dec. 31, 2017
$ / shares
shares
|
Sep. 30, 2018
Anniversary
$ / shares
shares
|
Sep. 30, 2018
USD ($)
Anniversary
$ / shares
shares
|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2018
USD ($)
Anniversary
$ / shares
shares
|
Oct. 03, 2018
$ / shares
|
Oct. 04, 2017
$ / shares
|
Dec. 31, 2016
shares
|
Jan. 06, 2016
USD ($)
|
Mar. 25, 2015
USD ($)
|
|
Related party transaction, expenses from transactions with related party | $ | $ 6,705,000 | $ 5,544,000 | $ 18,357,000 | $ 17,931,000 | ||||||||||||||
Number of limited partnership units issued to non controlling | 222 | |||||||||||||||||
Net earning of joint venture allocated to noncontrolling interest | 30.00% | 30.00% | ||||||||||||||||
Contributions from noncontrolling interest | $ | $ 2,000 | $ 4,470,000 | $ 8,304,000 | |||||||||||||||
Share repurchase plan percentage of price per-share condition two | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 95.00% | |||||||||||
Issuance of common stock under the DRIP, shares | 20,355,578 | 25,257,815 | ||||||||||||||||
Granted (in shares) | 105,000 | |||||||||||||||||
Maximum percentage of common stock repurchased during period | 5.00% | |||||||||||||||||
Common stock repuchased during period under share repurchase plan, shares | 1,994,354 | 1,039,450 | 5,764,926 | 2,699,995 | 6,047,664 | 11,812,590 | ||||||||||||
Stock repuchased during period value under the share repurchase plan, value | $ | $ 18,399,000 | $ 9,317,000 | $ 53,099,000 | $ 24,022,000 | $ 55,358,000 | $ 108,457,000 | ||||||||||||
Stock acquired average cost per share | $ / shares | $ 9.23 | $ 8.96 | $ 9.21 | $ 8.90 | $ 9.15 | $ 9.18 | ||||||||||||
Number of shares of preferred stock, authorized to be issued | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||
Par value of preferred stock, authorized to be issued | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||
Par value of common stock to be offered and sold to the public | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||
Issuance of common stock under the DRIP | $ | $ 45,444,000 | $ 47,453,000 | $ 189,681,000 | $ 235,125,000 | ||||||||||||||
Number of shares of common stock, authorized to be issued | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||
Maximum dollar amount of common stock issuable under public offering | $ | $ 1,900,000,000 | |||||||||||||||||
Common stock, shares outstanding | 198,503,045 | 198,503,045 | 199,343,234 | 198,503,045 | 198,503,045 | 199,343,234 | 198,503,045 | |||||||||||
Share repurchase plan holding period | 1 year | 1 year | ||||||||||||||||
Share Repurchase Plan Percentage of Price per-Share Condition One | 92.50% | 92.50% | ||||||||||||||||
Stock based compensation | $ | $ 171,000 | 171,000 | ||||||||||||||||
Preferred Stock, Value, Subscriptions | $ | $ 125,000 | |||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | Rate | 12.50% | |||||||||||||||||
Common stock, shares, issued | 198,503,045 | 198,503,045 | 199,343,234 | 198,503,045 | 198,503,045 | 199,343,234 | 198,503,045 | |||||||||||
Share Repurchase Plan Percentage of Price per-Share Condition Three | 97.50% | |||||||||||||||||
Share Repurchase Plan Percentage of Price per-Share Condition Four | 100.00% | |||||||||||||||||
Two Thousand Thirteen Incentive Plan [Member] | Common Stock | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | |||||||||||||
Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||
Stock based compensation | $ | $ 72,000 | $ 71,000 | $ 171,000 | 171,000 | ||||||||||||||
Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | Re-elected or Newly Elected Independent Directors [Member] | ||||||||||||||||||
Vesting percentage | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||
Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | Independent Director [Member] | ||||||||||||||||||
Number of vesting anniversaries | Anniversary | 4 | 4 | 4 | 4 | 4 | |||||||||||||
Granted (in shares) | 15,000 | 22,500 | ||||||||||||||||
DRIP [Member] | ||||||||||||||||||
Subscriptions in offering of common stock received and accepted shares | 1,948,563 | |||||||||||||||||
Percentage of offering price | 95.00% | |||||||||||||||||
Maximum amount of common stock issuable under public offering | $ | $ 35,000,000 | |||||||||||||||||
Share price | $ / shares | $ 9.50 | $ 9.27 | ||||||||||||||||
DRIP S-3 Public Offering [Member] | ||||||||||||||||||
Issuance of common stock under the DRIP, shares | 23,309,252 | |||||||||||||||||
Issuance of common stock under the DRIP | $ | $ 216,614,000 | |||||||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ | $ 250,000,000 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Subscriptions in offering of common stock received and accepted shares | 184,930,598 | |||||||||||||||||
Total Stockholders' Equity | ||||||||||||||||||
Issuance of common stock under the DRIP | $ | $ 14,995,000 | $ 15,826,000 | $ 45,444,000 | $ 47,453,000 | ||||||||||||||
Common Stock | ||||||||||||||||||
Issuance of common stock under the DRIP, shares | 1,617,584 | 1,756,466 | 4,902,237 | 5,266,636 | ||||||||||||||
Issuance of common stock under the DRIP | $ | $ 49,000 | $ 53,000 | ||||||||||||||||
Shares, Issued | 198,503,045 | 198,369,180 | 198,503,045 | 198,369,180 | 199,343,234 | 198,503,045 | 198,503,045 | 199,343,234 | 198,503,045 | 195,780,039 | ||||||||
Trilogy Investors, LLC [Member] | ||||||||||||||||||
Ownership percentage equity interest | 96.70% | 96.70% | 96.70% | 96.70% | 96.70% | 96.70% | 96.70% | 96.70% | ||||||||||
Trilogy Joint Venture [Member] | ||||||||||||||||||
Joint venture ownership interest | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | 70.00% | ||||||||||||
Lakeview IN Medical Plaza [Member] | ||||||||||||||||||
Joint venture ownership interest | 86.00% | 86.00% | 86.00% | 86.00% | 86.00% | 86.00% | 86.00% | |||||||||||
Joint venture earnings percentage allocation | 14.00% | 14.00% | 14.00% | 14.00% | 14.00% | 14.00% | 14.00% | |||||||||||
Trilogy Joint Venture [Member] | Profits Interests [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||||||||||
Stock based compensation | $ | $ 195,000 | $ 195,000 | $ 585,000 | $ 390,000 | ||||||||||||||
Griffin American Advisor [Member] | ||||||||||||||||||
Stock purchased | 22,222 | |||||||||||||||||
Value of stock purchased | $ | $ 200,000 | |||||||||||||||||
Subsequent Event [Member] | DRIP [Member] | ||||||||||||||||||
Share price | $ / shares | $ 9.37 |
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended | 55 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
Anniversary
shares
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
Anniversary
shares
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
Anniversary
shares
|
|
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Granted (in shares) | 105,000 | ||||
Stock based compensation | $ | $ 171 | $ 171 | |||
Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | |||||
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Stock based compensation | $ | $ 72 | $ 71 | $ 171 | $ 171 | |
Common Stock | Two Thousand Thirteen Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | ||
Re-elected or Newly Elected Independent Directors [Member] | Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | |||||
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Vesting percentage | 20.00% | 20.00% | 20.00% | ||
Independent Director [Member] | Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | |||||
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Granted (in shares) | 15,000 | 22,500 | |||
Number of vesting anniversaries | Anniversary | 4 | 4 | 4 |
Related Party Transactions - Additional Information (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | 44 Months Ended | 55 Months Ended | ||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Related Party Transaction [Line Items] | |||||||
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | |||||
Related party transaction, expenses from transactions with related party | $ 6,705,000 | $ 5,544,000 | $ 18,357,000 | $ 17,931,000 | |||
Advisor [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% | ||||||
Acquisition price for any real estate-related investment we originate or acquire | 2.00% | ||||||
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||
Asset Management Fee Percent | 0.75% | ||||||
Subordinated asset management fee subject to stockholders receiving distributions, percentage | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||
Percentage Of Property Oversight Fees | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ||
Percentage Of Property Oversight Fees - Multiple Tenants | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | ||
Minimum percentage of lease fee | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | ||
Maximum percentage of lease fee | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||
Maximum percentage of construction management fee | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||
Percentage Of Operating Expenses Of Average Invested Asset | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||
Percentage Of Operating Expense Of Net Income | 25.00% | ||||||
Disposition fees as percentage of contract sales price | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||
Disposition fees as percentage of customary competitive real estate commission | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||
Maximum percentage of disposition fee | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||
Acquistion Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | $ 1,069,000 | $ 67,000 | $ 1,076,000 | $ 1,700,000 | |||
Development Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | 24,000 | 0 | 69,000 | 0 | |||
Asset Management [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | 4,873,000 | 4,713,000 | 14,438,000 | 14,054,000 | |||
Property Management Fee [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | 617,000 | 589,000 | 1,811,000 | 1,761,000 | |||
Lease Commissions [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | 36,000 | 102,000 | 764,000 | 222,000 | |||
Construction Management Fee [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | 38,000 | 20,000 | 52,000 | 38,000 | |||
Operating Expense [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, expenses from transactions with related party | $ 48,000 | $ 53,000 | $ 147,000 | $ 156,000 | |||
Percentage of operating expenses of average invested assets | 0.90% | ||||||
Percentage of operating expenses of net income | 18.40% | ||||||
Subordinated distribution of net sales proceeds [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of distribution of net proceeds from sales of properties | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Annual cumulative non compounded return on gross proceeds from sale of shares | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | ||
Subordinated Distribution Upon Listing [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of distribution of net proceeds from sales of properties | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Annual cumulative non compounded return upon listing of shares | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | ||
Subordinated Distribution Upon Termination [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Distribution rate of partnership amount to sub advisor | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Annual cumulative non compounded return on gross proceeds from sale of shares | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
Related Party Transactions - Schedule of Amount Outstanding to Affiliates (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 1,994 | $ 2,057 |
Asset And Property Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 1,833 | 1,783 |
Acquistion Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 79 | 115 |
Construction Management Fee [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 38 | 14 |
Lease Commissions [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 34 | 31 |
Operating Expense [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 10 | 10 |
Development Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 0 | $ 104 |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Liabilities: | ||
Contingent consideration obligations | $ 3,498 | $ 5,107 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 1,239 | 2,366 |
Contingent consideration receivable | 0 | 0 |
Total assets at fair value | 1,239 | 2,366 |
Liabilities: | ||
Contingent consideration obligations | 3,498 | 5,107 |
Warrants | 1,078 | 1,155 |
Total liabilities at fair value | 4,576 | 6,262 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration receivable | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Contingent consideration obligations | 0 | 0 |
Warrants | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 1,239 | 2,366 |
Contingent consideration receivable | 0 | 0 |
Total assets at fair value | 1,239 | 2,366 |
Liabilities: | ||
Contingent consideration obligations | 0 | 0 |
Warrants | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration receivable | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Contingent consideration obligations | 3,498 | 5,107 |
Warrants | 1,078 | 1,155 |
Total liabilities at fair value | $ 4,576 | $ 6,262 |
Fair Value Measurements - Additional Information (Detail) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
May 31, 2018
USD ($)
|
Jan. 31, 2018
USD ($)
facility
|
Mar. 31, 2018
ft²
|
Sep. 30, 2018
USD ($)
facility
|
Dec. 31, 2017
USD ($)
|
Mar. 17, 2015
USD ($)
|
|
Business Acquisitions [Line Items] | ||||||
Contingent consideration obligations | $ 3,498,000 | $ 5,107,000 | ||||
North Carolina ALF Portfolio - Moorseville and Clemmons [Member] | ||||||
Business Acquisitions [Line Items] | ||||||
Number of Facilities | facility | 2 | |||||
North Carolina ALF Portfolio - Moorseville and Clemmons [Member] | Contingent Consideration Obligation [Member] | ||||||
Business Acquisitions [Line Items] | ||||||
Business combination, contingent consideration arrangements, range of outcomes, value, high | $ 20,318,000 | |||||
Number of Facilities | facility | 2 | |||||
North Carolina ALF Portfolio [Member] | Contingent Consideration Obligation [Member] | ||||||
Business Acquisitions [Line Items] | ||||||
Contingent consideration period earnout payment is based on | 3 months | |||||
Contingent Consideration Obligation Payment Period | 4 years | 3 years | ||||
Fair Value, Measurements, Recurring [Member] | ||||||
Business Acquisitions [Line Items] | ||||||
Contingent consideration obligations | $ 3,498,000 | 5,107,000 | ||||
Warrants | 1,078,000 | 1,155,000 | ||||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Business Acquisitions [Line Items] | ||||||
Contingent consideration obligations | 3,498,000 | 5,107,000 | ||||
Warrants | $ 1,078,000 | $ 1,155,000 | ||||
Contingent Consideration Asset [Member] | Mt. Juliet TN MOB [Member] [Member] | ||||||
Business Acquisitions [Line Items] | ||||||
Business combination, contingent consideration arrangements, range of outcomes, value, high | $ 634,000 | |||||
Business combination, contingent consideration arrangements, range of outcomes, value, low | $ 0 | |||||
Seller square feet lease criteria | ft² | 6,611 | |||||
Consideration received | $ 45,000 |
Fair Value Measurements Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
||||
---|---|---|---|---|---|---|---|---|
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||
Real estate notes receivable | $ 30,615 | $ 30,713 | ||||||
Real estate notes receivable, fair value | 30,615 | 31,414 | ||||||
Investment | 69,198 | 67,275 | ||||||
Investment, fair value | 93,396 | 94,202 | ||||||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||||||||
Mortgage loans payable, net | 686,954 | [1] | 613,558 | [1] | $ 615,346 | $ 495,717 | ||
Mortgage loans payable, net fair value | 617,388 | 570,918 | ||||||
Lines of credit and term loan, net | 694,807 | 617,798 | ||||||
Line of credit and term loan, net fair value | $ 697,953 | $ 624,102 | ||||||
|
Income Taxes -Income (loss) before income tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Domestic | $ 3,926 | $ 3,875 | $ 12,248 | $ (2,318) |
Foreign | (146) | (134) | (258) | (723) |
Income (loss) before income taxes | $ 3,780 | $ 3,741 | $ 11,990 | $ (3,041) |
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Federal deferred | $ (1,291) | $ (1,996) | $ (3,769) | $ (5,478) |
State deferred | (270) | (200) | (773) | (549) |
State current | 4 | 0 | 4 | 0 |
Foreign deferred | 0 | 0 | 0 | (61) |
Foreign current | 387 | 90 | 568 | 239 |
Valuation allowances | 1,126 | 1,386 | 3,029 | 4,351 |
Total income tax expense | $ (44) | $ (720) | $ (941) | $ (1,498) |
Segment Reporting - Summary Information for Reportable Segments (Detail) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
segment
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
segment
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 6 | 6 | ||||
Revenues: | ||||||
Resident fees and services | $ 251,884,000 | $ 230,768,000 | $ 744,859,000 | $ 682,300,000 | ||
Real estate revenue | 32,295,000 | 31,980,000 | 97,475,000 | 95,422,000 | ||
Total revenues | 284,179,000 | 262,748,000 | 842,334,000 | 777,722,000 | ||
Expenses: | ||||||
Property operating expenses | 223,665,000 | 199,047,000 | 659,295,000 | 596,099,000 | ||
Rental expenses | 8,577,000 | 8,299,000 | 26,264,000 | 24,925,000 | ||
Segment net operating income | 51,937,000 | 55,402,000 | 156,775,000 | 156,698,000 | ||
Operating Expenses | ||||||
General and administrative | 6,900,000 | 9,270,000 | 19,910,000 | 24,642,000 | ||
Acquisition related expenses | (1,102,000) | 71,000 | (1,657,000) | 532,000 | ||
Depreciation and amortization | 23,816,000 | 27,579,000 | 70,190,000 | 88,442,000 | ||
Other income (expense): | ||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium) | (16,538,000) | (14,773,000) | (48,369,000) | (45,356,000) | ||
(Loss) gain in fair value of derivative financial instruments | (750,000) | (59,000) | (1,127,000) | 44,000 | ||
(Loss) gain on dispositions of real estate investments | 0 | (9,000) | 0 | 3,370,000 | ||
Impairment of real estate investments | 0 | 0 | (2,542,000) | (4,883,000) | ||
Loss from unconsolidated entity | (1,137,000) | (1,494,000) | (3,672,000) | (3,668,000) | ||
Foreign currency (loss) gain | (619,000) | 1,384,000 | (1,652,000) | 3,697,000 | ||
Other income | 501,000 | 210,000 | 1,020,000 | 673,000 | ||
Income (loss) before income taxes | 3,780,000 | 3,741,000 | 11,990,000 | (3,041,000) | ||
Income tax benefit | 44,000 | 720,000 | 941,000 | 1,498,000 | ||
Net income (loss) | 3,824,000 | 4,461,000 | 12,931,000 | (1,543,000) | ||
Assets by Reportable Segment | ||||||
Total assets | $ 2,872,554,000 | 2,872,554,000 | 2,872,554,000 | $ 2,800,475,000 | ||
Goodwill | 75,309,000 | 75,309,000 | 75,309,000 | 75,309,000 | ||
Segments, Geographical Areas | ||||||
Real estate investments, net | 2,210,766,000 | 2,210,766,000 | 2,210,766,000 | 2,163,258,000 | ||
United States [Member] | ||||||
Revenues: | ||||||
Total revenues | 282,977,000 | 261,551,000 | 838,603,000 | 774,230,000 | ||
Segments, Geographical Areas | ||||||
Real estate investments, net | 2,160,641,000 | 2,160,641,000 | 2,160,641,000 | 2,110,280,000 | ||
International [Member] | ||||||
Revenues: | ||||||
Total revenues | 1,202,000 | 1,197,000 | 3,731,000 | 3,492,000 | ||
Segments, Geographical Areas | ||||||
Real estate investments, net | 50,125,000 | 50,125,000 | 50,125,000 | 52,978,000 | ||
Integrated Senior Health Campuses [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 235,605,000 | 214,555,000 | 696,187,000 | 634,252,000 | ||
Real estate revenue | 0 | 0 | 0 | 0 | ||
Total revenues | 235,605,000 | 214,555,000 | 696,187,000 | 634,252,000 | ||
Expenses: | ||||||
Property operating expenses | 212,519,000 | 188,224,000 | 626,091,000 | 563,592,000 | ||
Rental expenses | 0 | 0 | 0 | 0 | ||
Segment net operating income | 23,086,000 | 26,331,000 | 70,096,000 | 70,660,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 1,447,243,000 | 1,447,243,000 | 1,447,243,000 | 1,366,245,000 | ||
Goodwill | 75,309,000 | 75,309,000 | 75,309,000 | 75,309,000 | ||
Senior Housing-RIDEA [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 16,279,000 | 16,213,000 | 48,672,000 | 48,048,000 | ||
Real estate revenue | 0 | 0 | 0 | 0 | ||
Total revenues | 16,279,000 | 16,213,000 | 48,672,000 | 48,048,000 | ||
Expenses: | ||||||
Property operating expenses | 11,146,000 | 10,823,000 | 33,204,000 | 32,507,000 | ||
Rental expenses | 0 | 0 | 0 | 0 | ||
Segment net operating income | 5,133,000 | 5,390,000 | 15,468,000 | 15,541,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 273,893,000 | 273,893,000 | 273,893,000 | 279,388,000 | ||
Medical Office Building [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 20,029,000 | 19,971,000 | 60,316,000 | 58,879,000 | ||
Total revenues | 20,029,000 | 19,971,000 | 60,316,000 | 58,879,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 7,577,000 | 7,343,000 | 23,255,000 | 22,068,000 | ||
Segment net operating income | 12,452,000 | 12,628,000 | 37,061,000 | 36,811,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 653,967,000 | 653,967,000 | 653,967,000 | 662,959,000 | ||
Senior Housing [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 5,472,000 | 5,270,000 | 16,265,000 | 15,598,000 | ||
Total revenues | 5,472,000 | 5,270,000 | 16,265,000 | 15,598,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 211,000 | 166,000 | 583,000 | 501,000 | ||
Segment net operating income | 5,261,000 | 5,104,000 | 15,682,000 | 15,097,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 244,497,000 | 244,497,000 | 244,497,000 | 231,559,000 | ||
Skilled Nursing Facilities [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 3,716,000 | 3,775,000 | 11,183,000 | 11,228,000 | ||
Total revenues | 3,716,000 | 3,775,000 | 11,183,000 | 11,228,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 391,000 | 415,000 | 1,207,000 | 1,204,000 | ||
Segment net operating income | 3,325,000 | 3,360,000 | 9,976,000 | 10,024,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 128,882,000 | 128,882,000 | 128,882,000 | 129,359,000 | ||
Hospitals [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 3,078,000 | 2,964,000 | 9,711,000 | 9,717,000 | ||
Total revenues | 3,078,000 | 2,964,000 | 9,711,000 | 9,717,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 398,000 | 375,000 | 1,219,000 | 1,152,000 | ||
Segment net operating income | 2,680,000 | $ 2,589,000 | 8,492,000 | $ 8,565,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 119,632,000 | 119,632,000 | 119,632,000 | 123,431,000 | ||
Other Segments [Member] | ||||||
Assets by Reportable Segment | ||||||
Total assets | $ 4,440,000 | $ 4,440,000 | $ 4,440,000 | $ 7,534,000 |
Concentration of Credit Risk - Additional Information (Detail) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
segment
State
|
Sep. 30, 2018
segment
State
|
|
Concentration of Credit Risk | ||
Number of states accounted for ten percent | State | 1 | 1 |
Minimum percent share of each state annualized base rent that company owned | 10.00% | 10.00% |
Number of reportable segments | segment | 6 | 6 |
Minimum percent share of annualized base rent accounted by tenants | 10.00% | 10.00% |
Integrated Senior Health Campuses [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 46.30% | 46.30% |
Medical Office Building [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 27.80% | 27.80% |
Senior Housing-RIDEA [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 9.90% | 9.90% |
Senior Housing [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 6.50% | 6.50% |
Skilled Nursing Facilities [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 5.60% | 5.60% |
Hospitals [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 3.90% | 3.90% |
Indiana [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 35.30% | 35.30% |
Per Share Data (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Participating securities, distributed and undistributed earnings (loss), basic | $ 7 | $ 7 | $ 20 | $ 19 |
Restricted Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 47,500 | 46,000 | ||
Redeemable Limited Partnership Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 222 | 222 |
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Trilogy Joint Venture [Member] |
Oct. 01, 2018 |
---|---|
NorthStar Healthcare Income, Inc. [Member] | |
Subsequent Events [Line Items] | |
Ownership percentage equity interest | 24.00% |
Griffin-American Healthcare REIT IV, Inc. [Member] | |
Subsequent Events [Line Items] | |
Ownership interest acquired | 6.00% |
Ownership percentage equity interest | 6.00% |
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