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Concentration of Credit Risk
6 Months Ended
Jun. 30, 2017
Concentration of Credit Risk [Abstract]  
Concentration of Credit Risk
16. Concentration of Credit Risk
Financial instruments that potentially subject us to a concentration of credit risk are primarily cash and cash equivalents, accounts and other receivables, restricted cash and real estate deposits. 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 June 30, 2017 and December 31, 2016, 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. In general, 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 June 30, 2017, three states in the United States accounted for 10.0% or more of our annualized base rent of our total property portfolio. Our properties located in Nevada, Alabama and California accounted for approximately 19.0%, 16.1% and 13.5%, respectively, of the annualized base rent of our total property portfolio. Accordingly, there is a geographic concentration of risk subject to fluctuations in each state’s economy.
As of June 30, 2017, we had two tenants that accounted for 10.0% or more of our annualized base rent, as follows:
Tenant
 
Annualized
Base Rent(1)
 
Percentage of
Annualized Base Rent
 
Acquisition
 
Reportable Segment
 
GLA
(Sq Ft)
 
Lease Expiration
Date
Colonial Oaks Master Tenant, LLC
 
$
4,108,000

 
16.3%
 
Lafayette Assisted Living Portfolio and Northern California Senior Housing Portfolio
 
Senior Housing
 
215,000

 
Multiple
Prime Healthcare Services – Reno
 
$
3,933,000

 
15.6%
 
Reno MOB
 
Medical Office
 
152,000

 
Multiple
___________
(1)
Annualized base rent is based on contractual base rent from the leases in effect as of June 30, 2017. The loss of these tenants or their inability to pay rent could have a material adverse effect on our business and results of operations.