Delaware | 1-10989 | 61-1055020 | ||
(State or Other Jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | Identification No.) |
353 N. Clark Street, Suite 3300, Chicago, Illinois | 60654 | |
(Address of Principal Executive Offices) | (Zip Code) |
Exhibit Number | Description | |
23.1 | Consent of Grant Thornton LLP. | |
99.1 | Unaudited consolidated financial statements of HCT as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013. | |
99.2 | Audited consolidated financial statements of HCT as of December 31, 2013 and 2012 and for each of the three years in the period ended December 31, 2013. | |
99.3 | Unaudited pro forma condensed consolidated financial statements of Ventas as of and for the six months ended June 30, 2014 and for the year ended December 31, 2013. |
VENTAS, INC. | ||
Date: September 16, 2014 | By: | /s/ Kristen M. Benson |
Kristen M. Benson | ||
Senior Vice President, Associate General Counsel and Corporate Secretary |
Exhibit Number | Description | |
23.1 | Consent of Grant Thornton LLP. | |
99.1 | Unaudited consolidated financial statements of HCT as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013. | |
99.2 | Audited consolidated financial statements of HCT as of December 31, 2013 and 2012 and for each of the three years in the period ended December 31, 2013. | |
99.3 | Unaudited pro forma condensed consolidated financial statements of Ventas as of and for the six months ended June 30, 2014 and for the year ended December 31, 2013. |
Page | |
Consolidated Balance Sheets as of June 30, 2014 (Unaudited) and December 31, 2013 | |
Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2014 and 2013 (Unaudited) | |
Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2014 (Unaudited) | |
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2014 and 2013 (Unaudited) | |
Notes to Consolidated Financial Statements (Unaudited) |
June 30, 2014 | December 31, 2013 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Real estate investments, at cost: | |||||||
Land | $ | 143,505 | $ | 107,719 | |||
Buildings, fixtures and improvements | 1,729,130 | 1,363,858 | |||||
Construction in progress | 19,262 | 11,112 | |||||
Acquired intangible lease assets | 228,963 | 181,264 | |||||
Total real estate investments, at cost | 2,120,860 | 1,663,953 | |||||
Less: accumulated depreciation and amortization | (148,543 | ) | (87,350 | ) | |||
Total real estate investments, net | 1,972,317 | 1,576,603 | |||||
Cash and cash equivalents | 28,695 | 103,447 | |||||
Restricted cash | 2,135 | 1,381 | |||||
Investment securities, at fair value | 19,427 | 14,670 | |||||
Preferred equity investment | 8,800 | — | |||||
Prepaid expenses and other assets | 26,080 | 17,431 | |||||
Deferred costs, net | 20,071 | 21,041 | |||||
Total assets | $ | 2,077,525 | $ | 1,734,573 | |||
LIABILITIES AND EQUITY | |||||||
Mortgage notes payable | $ | 304,207 | $ | 259,348 | |||
Mortgage premiums, net | 4,000 | 2,769 | |||||
Credit facility | 507,500 | — | |||||
Below-market lease liabilities, net | 5,146 | 5,543 | |||||
Derivatives, at fair value | 58,490 | 333 | |||||
Accounts payable and accrued expenses | 28,277 | 17,460 | |||||
Deferred rent and other liabilities | 5,261 | 2,949 | |||||
Dividends payable | — | 10,427 | |||||
Total liabilities | 912,881 | 298,829 | |||||
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued or outstanding at June 30, 2014 and December 31, 2013 | — | — | |||||
Common stock, $0.01 par value per share, 300,000,000 authorized, 169,316,257 and 180,463,898 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 1,691 | 1,805 | |||||
Additional paid-in capital | 1,462,108 | 1,591,941 | |||||
Accumulated other comprehensive loss | (987 | ) | (3,243 | ) | |||
Accumulated deficit | (312,655 | ) | (158,378 | ) | |||
Total stockholders' equity | 1,150,157 | 1,432,125 | |||||
Non-controlling interests | 14,487 | 3,619 | |||||
Total equity | 1,164,644 | 1,435,744 | |||||
Total liabilities and equity | $ | 2,077,525 | $ | 1,734,573 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | |||||||||||||||
Rental income | $ | 55,584 | $ | 20,885 | $ | 103,101 | $ | 36,872 | |||||||
Operating expense reimbursements | 4,267 | 2,474 | 8,451 | 4,663 | |||||||||||
Resident services and fee income | 4,918 | 578 | 9,206 | 1,080 | |||||||||||
Total revenues | 64,769 | 23,937 | 120,758 | 42,615 | |||||||||||
Operating expenses: | |||||||||||||||
Property operating and maintenance | 26,238 | 7,444 | 49,717 | 12,636 | |||||||||||
Operating fees to affiliates | 2,352 | — | 2,352 | — | |||||||||||
Acquisition and transaction related | 22,456 | 2,713 | 25,878 | 4,751 | |||||||||||
Vesting of Class B units for asset management services | 12,917 | — | 12,917 | — | |||||||||||
Fair value of listing note | 58,150 | — | 58,150 | — | |||||||||||
General and administrative | 2,674 | 1,240 | 4,592 | 1,481 | |||||||||||
Equity-based compensation | 97 | 10 | 107 | 18 | |||||||||||
Depreciation and amortization | 31,713 | 12,714 | 60,656 | 24,408 | |||||||||||
Total operating expenses | 156,597 | 24,121 | 214,369 | 43,294 | |||||||||||
Operating loss | (91,828 | ) | (184 | ) | (93,611 | ) | (679 | ) | |||||||
Other income (expenses): | |||||||||||||||
Interest expense | (7,108 | ) | (3,315 | ) | (12,651 | ) | (6,404 | ) | |||||||
Income from preferred equity investment and investment securities and interest income | 495 | 255 | 795 | 255 | |||||||||||
Gain on sale of investment securities | 335 | — | 335 | — | |||||||||||
Total other expense | (6,278 | ) | (3,060 | ) | (11,521 | ) | (6,149 | ) | |||||||
Net loss | (98,106 | ) | (3,244 | ) | (105,132 | ) | (6,828 | ) | |||||||
Net loss (income) attributable to non-controlling interests | 817 | (14 | ) | 808 | (36 | ) | |||||||||
Net loss attributable to stockholders | (97,289 | ) | (3,258 | ) | (104,324 | ) | (6,864 | ) | |||||||
Other comprehensive income: | |||||||||||||||
Designated derivatives, fair value adjustment | (26 | ) | 298 | (7 | ) | 343 | |||||||||
Unrealized gain on investment securities, net | 636 | (985 | ) | 2,263 | (985 | ) | |||||||||
Comprehensive loss attributable to stockholders | $ | (96,679 | ) | $ | (3,945 | ) | $ | (102,068 | ) | $ | (7,506 | ) | |||
Basic and diluted weighted average shares outstanding | 175,129,424 | 170,124,871 | 178,357,402 | 123,834,119 | |||||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.56 | ) | $ | (0.02 | ) | $ | (0.58 | ) | $ | (0.06 | ) |
Common Stock | ||||||||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||||||
Balance, December 31, 2013 | 180,463,898 | $ | 1,805 | $ | 1,591,941 | $ | (3,243 | ) | $ | (158,378 | ) | $ | 1,432,125 | $ | 3,619 | $ | 1,435,744 | |||||||||||||
Common stock issued through distribution reinvestment plan | 2,344,631 | 23 | 22,231 | — | — | 22,254 | — | 22,254 | ||||||||||||||||||||||
Common stock repurchases, inclusive of fees and expenses | (13,718,177 | ) | (137 | ) | (151,995 | ) | — | — | (152,132 | ) | — | (152,132 | ) | |||||||||||||||||
Dividends declared | — | — | — | — | (49,953 | ) | (49,953 | ) | — | (49,953 | ) | |||||||||||||||||||
Contributions from non-controlling interest holders | — | — | — | — | — | — | 750 | 750 | ||||||||||||||||||||||
Vesting of Class B units for asset management services | — | — | — | — | — | — | 12,917 | 12,917 | ||||||||||||||||||||||
Equity-based compensation | 225,905 | — | 239 | — | — | 239 | — | 239 | ||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | (299 | ) | (299 | ) | ||||||||||||||||||||
Increase in interest in Reliant Rehabilitation - Dallas, TX | — | — | (308 | ) | — | — | (308 | ) | (1,692 | ) | (2,000 | ) | ||||||||||||||||||
Other comprehensive income | — | — | — | 2,256 | — | 2,256 | — | 2,256 | ||||||||||||||||||||||
Net loss | — | — | — | — | (104,324 | ) | (104,324 | ) | (808 | ) | (105,132 | ) | ||||||||||||||||||
Balance, June 30, 2014 | 169,316,257 | $ | 1,691 | $ | 1,462,108 | $ | (987 | ) | $ | (312,655 | ) | $ | 1,150,157 | $ | 14,487 | $ | 1,164,644 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net loss attributable to stockholders | $ | (104,324 | ) | $ | (6,864 | ) | |
Adjustment to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 36,628 | 17,065 | |||||
Amortization of intangibles | 24,028 | 7,343 | |||||
Amortization of deferred financing costs | 3,190 | 1,253 | |||||
Amortization of mortgage premiums | (648 | ) | (368 | ) | |||
Accretion of below-market lease liabilities and amortization of above-market lease assets, net | 189 | 186 | |||||
Vesting of Class B units for asset management services | 12,917 | — | |||||
Net loss (income) attributable to non-controlling interests | (808 | ) | 36 | ||||
Equity-based compensation | 239 | 33 | |||||
Fair value of listing note | 58,150 | — | |||||
Gain on sale of investment securities | (335 | ) | — | ||||
Changes in assets and liabilities: | |||||||
Prepaid expenses and other assets | (6,097 | ) | (3,045 | ) | |||
Accounts payable and accrued expenses | 10,792 | 3,437 | |||||
Deferred rent and other liabilities | 2,312 | (91 | ) | ||||
Net cash provided by operating activities | 36,233 | 18,985 | |||||
Cash flows from investing activities: | |||||||
Investment in real estate and preferred equity investment | (411,875 | ) | (183,621 | ) | |||
Deposits for real estate | (6,500 | ) | (5,152 | ) | |||
Capital expenditures | (2,302 | ) | (104 | ) | |||
Purchase of investment securities | (3,000 | ) | (18,966 | ) | |||
Proceeds from sale of investment securities | 841 | — | |||||
Net cash used in investing activities | (422,836 | ) | (207,843 | ) | |||
Cash flows from financing activities: | |||||||
Payments of note payable | — | (2,500 | ) | ||||
Payments of mortgage notes payable | (671 | ) | (87 | ) | |||
Proceeds from credit facility | 507,500 | — | |||||
Payments on credit facility | — | (26,000 | ) | ||||
Payments of deferred financing costs | (1,913 | ) | (584 | ) | |||
Proceeds from issuance of common stock | — | 1,196,951 | |||||
Proceeds from the issuance of OP units | 750 | — | |||||
Common stock repurchases, inclusive of fees and expenses | (152,636 | ) | (990 | ) | |||
Payments of offering costs and fees related to stock issuances | — | (122,161 | ) | ||||
Dividends paid | (38,126 | ) | (17,162 | ) | |||
Due from/to affiliate | — | 190 | |||||
Payments to non-controlling interest holders | (2,000 | ) | — | ||||
Distributions to non-controlling interests holders | (299 | ) | (190 | ) | |||
Restricted cash | (754 | ) | (238 | ) | |||
Net cash provided by financing activities | 311,851 | 1,027,229 | |||||
Net change in cash | (74,752 | ) | 838,371 | ||||
Cash, beginning of period | 103,447 | 13,869 | |||||
Cash, end of period | $ | 28,695 | $ | 852,240 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Supplemental Disclosures: | |||||||
Cash paid for interest | $ | 10,096 | $ | 5,508 | |||
Cash paid for income taxes | 1,223 | 84 | |||||
Non-Cash Investing and Financing Activities: | |||||||
Mortgage notes payable assumed or used to acquire investments in real estate | $ | 45,530 | $ | 15,776 | |||
Premiums on assumed mortgage notes payable | 1,879 | 340 | |||||
Common stock issued through distribution reinvestment plan | 22,254 | 17,801 |
Six Months Ended June 30, | ||||||||
(Dollar amounts in thousands) | 2014 | 2013 | ||||||
Real estate investments, at cost: | ||||||||
Land | $ | 34,786 | $ | 11,677 | ||||
Buildings, fixtures and improvements | 363,968 | 167,407 | ||||||
Construction in progress | 8,150 | — | ||||||
Total tangible assets | 406,904 | 179,084 | ||||||
Acquired intangibles: | ||||||||
In-place leases | 47,699 | 19,082 | ||||||
Above-market lease assets | — | 3,163 | ||||||
Below-market lease liabilities | — | (639 | ) | |||||
Total assets acquired, net | 454,603 | 200,690 | ||||||
Preferred equity investment (see Note 5 — Preferred Equity Investment) | 8,800 | — | ||||||
Deposits for real estate | (3,590 | ) | — | |||||
Mortgage notes payable assumed or used to acquire real estate investments | (45,530 | ) | (15,776 | ) | ||||
Premiums on mortgages assumed | (1,879 | ) | (340 | ) | ||||
Other liabilities assumed | (529 | ) | (953 | ) | ||||
Cash paid for acquired real estate and preferred equity investments | $ | 411,875 | $ | 183,621 | ||||
Number of properties purchased | 32 | 20 |
Six Months Ended June 30, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Pro forma revenues | $ | 137,887 | $ | 75,311 | ||||
Pro forma net loss attributable to stockholders | $ | (96,390 | ) | $ | (3,224 | ) |
(In thousands) | Future Minimum Base Rent Payments | |||
July 1, 2014 — December 31, 2014 | $ | 56,300 | ||
2015 | 113,885 | |||
2016 | 114,770 | |||
2017 | 113,880 | |||
2018 | 108,851 | |||
Thereafter | 801,879 | |||
$ | 1,309,565 |
June 30, | ||||
State | 2014 | 2013 | ||
Florida | 10.0% | * | ||
Georgia | 12.8% | 16.7% | ||
Illinois | * | 10.6% | ||
Oregon | * | 16.1% | ||
Texas | 10.5% | 16.8% |
* | State's annualized rental income on a straight-line basis was not 10% or more of total annualized rental income for all portfolio properties as of the date specified. |
(In thousands) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
June 30, 2014 | ||||||||||||||||
Investment securities | $ | 20,075 | $ | 123 | $ | (771 | ) | $ | 19,427 | |||||||
December 31, 2013 | ||||||||||||||||
Investment securities | $ | 17,580 | $ | 202 | $ | (3,112 | ) | $ | 14,670 |
Outstanding Loan Amount as of | |||||||||||||||||
Portfolio | Encumbered Properties | June 30, 2014 | December 31, 2013 | Effective Interest Rate | Interest Rate | Maturity | |||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Texarkana ASC - Texarkana, TX | 1 | $ | 2,119 | $ | 2,143 | 5.58 | % | Fixed | Jun. 2016 | ||||||||
Carson Tahoe Specialty Medical Center - Carson City, NV (1) | 3 | 21,751 | 21,751 | 5.08 | % | Fixed | Sep. 2015 | ||||||||||
Durango Medical Plaza - Las Vegas, NV (1) | 1 | 17,172 | 17,172 | 5.08 | % | Fixed | Sep. 2015 | ||||||||||
CareMeridian Rehabilitation - Phoenix, AZ (1) | 1 | 6,936 | 6,936 | 5.08 | % | Fixed | Sep. 2015 | ||||||||||
Reliant Rehabilitation - Dallas, TX (1) | 1 | 24,850 | 24,850 | 5.15 | % | Fixed | Sep. 2015 | ||||||||||
Select Rehabilitation - San Antonio, TX (1) | 1 | 12,714 | 12,714 | 5.15 | % | Fixed | Sep. 2015 | ||||||||||
Spring Creek Medical Plaza - Tomball, TX (1) | 1 | 7,477 | 7,477 | 5.15 | % | Fixed | Sep. 2015 | ||||||||||
Odessa Regional MOB - Odessa, TX | 1 | 4,047 | 4,047 | 4.09 | % | (2) | Fixed | Dec. 2016 | |||||||||
Methodist North MOB - Peoria, IL | 1 | 13,544 | 13,544 | 3.99 | % | (2) | Fixed | Dec. 2016 | |||||||||
University of Wisconsin Health MOB - Monona, WI | 1 | 5,039 | 5,039 | 4.00 | % | Fixed | Apr. 2017 | ||||||||||
Reliant Rehabilitation - Houston, TX (1) | 1 | 13,437 | 13,437 | 4.98 | % | Fixed | Sep. 2015 | ||||||||||
Village Healthcare Center - Santa Ana (1) | 1 | 1,906 | 1,906 | 4.98 | % | Fixed | Sep. 2015 | ||||||||||
Sisters of Mercy Building - Springfield, MO | 1 | 5,500 | 5,500 | 4.11 | % | Fixed | Sep. 2017 | ||||||||||
East Pointe Medical Plaza - Lehigh Acres, FL | 1 | 5,260 | 5,260 | 4.11 | % | Fixed | Sep. 2017 | ||||||||||
Unitron Hearing Building - Plymouth, MN | 1 | 4,000 | 4,000 | 4.11 | % | Fixed | Sep. 2017 | ||||||||||
Carson Tahoe MOB West - Carson City, NV | 1 | 4,675 | 4,675 | 3.88 | % | (2) | Fixed | Jun. 2017 | |||||||||
Aurora Health Care Portfolio | 3 | 49,600 | 49,600 | 5.60 | % | Fixed | Jan. 2017 | ||||||||||
Princeton Village - Clackamas, OR | 1 | 3,068 | 3,114 | 7.48 | % | Fixed | Jan. 2031 | ||||||||||
Pelican Pointe - Klamath Falls, OR | 1 | 12,365 | 12,460 | 5.16 | % | Fixed | Apr. 2022 | ||||||||||
Fayette MOB - Fayetteville, GA | 1 | 6,902 | 6,986 | 5.18 | % | Fixed | Sep. 2015 | ||||||||||
Garden House - Anderson, SC | 1 | 8,082 | 8,149 | 4.86 | % | Fixed | Dec. 2018 | ||||||||||
Benton House - Covington, GA | 1 | 8,060 | 8,121 | 5.26 | % | Fixed | May 2019 | ||||||||||
Arbor Terrace - Asheville, SC | 1 | 9,433 | 9,497 | 5.58 | % | Fixed | Feb. 2018 | ||||||||||
Arbor Terrace - Decatur, GA | 1 | 10,896 | 10,970 | 5.57 | % | Fixed | Jan. 2018 | ||||||||||
Casa de Santa Fe - Rocklin, CA | 1 | 20,579 | — | 4.71 | % | Fixed | Oct. 2021 | ||||||||||
Bay Medical Plaza - Lynn Haven, FL | 1 | 9,579 | — | 6.61 | % | Fixed | Aug. 2017 | ||||||||||
Bay Medical Center - Panama City, FL | 1 | 9,321 | — | 6.61 | % | Fixed | Aug. 2017 | ||||||||||
Legacy Heart Center - Plano, TX | 1 | 5,895 | — | 5.76 | % | Fixed | Oct. 2015 | ||||||||||
Total | 32 | $ | 304,207 | $ | 259,348 | 5.17 | % | (3) |
(1) | These mortgages, aggregating $106.2 million, represent the first, second and third tranches of a multi-tranche mortgage loan agreement to provide funding for a portfolio of eight properties. The mortgages for each of the properties are cross-collateralized with one another and in the event that the Company defaults on one of the mortgages, the lender may look to the other properties as collateral. |
(2) | Fixed as a result of entering into a swap agreement. |
(3) | Calculated on a weighted average basis for all mortgages outstanding as of June 30, 2014. |
(In thousands) | Future Principal Payments | |||
July 1, 2014 — December 31, 2014 | $ | 769 | ||
2015 | 120,179 | |||
2016 | 20,936 | |||
2017 | 94,353 | |||
2018 | 27,778 | |||
Thereafter | 40,192 | |||
$ | 304,207 |
(In thousands) | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Total | ||||||||||||
June 30, 2014 | ||||||||||||||||
Interest rate swaps | $ | — | $ | (340 | ) | $ | — | $ | (340 | ) | ||||||
Investment securities | $ | 19,427 | $ | — | $ | — | $ | 19,427 | ||||||||
OPP (1) | $ | — | $ | — | $ | (1,350 | ) | $ | (1,350 | ) | ||||||
Listing Note | $ | — | $ | — | $ | (58,150 | ) | $ | (58,150 | ) | ||||||
December 31, 2013 | ||||||||||||||||
Interest rate swaps | $ | — | $ | (333 | ) | $ | — | $ | (333 | ) | ||||||
Investment securities | $ | 14,670 | $ | — | $ | — | $ | 14,670 |
(In thousands) | OPP | Listing Note | ||||||
Beginning balance as of December 31, 2013 | $ | — | $ | — | ||||
Fair value at issuance | 33,200 | 27,400 | ||||||
Fair value adjustments | (31,850 | ) | 30,750 | |||||
Ending balance as of June 30, 2014 | $ | 1,350 | $ | 58,150 |
Financial Instrument | Fair Value at June 30, 2014 | Principal Valuation Technique | Unobservable Inputs | Input Value | ||||||
(In thousands) | ||||||||||
Listing Note | $ | 58,150 | Monte Carlo Simulation | Expected volatility | 17.0% | |||||
Merger Probability | 95.0% | |||||||||
OPP | $ | 1,350 | Monte Carlo Simulation | Expected volatility | 29.0% | |||||
Merger Probability | 95.0% |
(In thousands) | Level | Carrying Amount at June 30, 2014 | Fair Value at June 30, 2014 | Carrying Amount at December 31, 2013 | Fair Value at December 31, 2013 | |||||||||||||
Mortgage notes payable and premiums, net (1) | 3 | $ | 308,207 | $ | 313,932 | $ | 262,117 | $ | 266,242 | |||||||||
Credit facility | 3 | $ | 507,500 | $ | 507,500 | $ | — | $ | — | |||||||||
Preferred equity investment | 3 | $ | 8,800 | $ | 8,800 | $ | — | $ | — |
June 30, 2014 | December 31, 2013 | |||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount | Number of Instruments | Notional Amount | ||||||||
(In thousands) | (In thousands) | |||||||||||
Interest rate swaps | 3 | $ | 22,266 | 3 | $ | 22,266 |
(In thousands) | Balance Sheet Location | June 30, 2014 | December 31, 2013 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest rate swaps | Derivatives, at fair value | $ | (340 | ) | $ | (333 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Amount of income (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion) | $ | (90 | ) | $ | 237 | $ | (134 | ) | $ | 222 | ||||||
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion) | $ | (64 | ) | $ | (61 | ) | $ | (127 | ) | $ | (121 | ) | ||||
Amount of gain (loss) recognized in income on derivative instruments (ineffective portion and amount excluded from effectiveness testing) | $ | — | $ | — | $ | — | $ | — |
Gross Amounts Not Offset on the Balance Sheet | ||||||||||||||||||||||||
Derivatives (In thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset on the Balance Sheet | Net Amounts of Liabilities presented on the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
June 30, 2014 | $ | (340 | ) | $ | — | $ | (340 | ) | $ | — | $ | — | $ | (340 | ) | |||||||||
December 31, 2013 | $ | (333 | ) | $ | — | $ | (333 | ) | $ | — | $ | — | $ | (333 | ) |
Number of Requests | Number of Shares Repurchased | Average Price per Share | ||||||||
Cumulative repurchase requests as of December 31, 2013 | 122 | 386,968 | $ | 9.77 | ||||||
Six months ended June 30, 2014 | 22 | 69,476 | 9.85 | |||||||
Cumulative repurchase requests as of June 30, 2014 | 144 | 456,444 | $ | 9.79 |
(In thousands) | Future Minimum Lease Payments | |||
July 1, 2014 — December 31, 2014 | $ | 335 | ||
2015 | 627 | |||
2016 | 634 | |||
2017 | 641 | |||
2018 | 664 | |||
Thereafter | 23,553 | |||
$ | 26,454 |
Three Months Ended | Six Months Ended | Receivable (1) as of | ||||||||||||||||||||||
June 30, | June 30, | June 30, | December 31, | |||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Total commissions and fees incurred from the Dealer Manager | $ | (19 | ) | $ | 60,913 | $ | — | $ | 117,425 | $ | (18 | ) | $ | (18 | ) |
Three Months Ended | Six Months Ended | Payable as of | ||||||||||||||||||||||
June 30, | June 30, | June 30, | December 31, | |||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Fees and expense reimbursements incurred from the Advisor and Dealer Manager | $ | — | $ | 622 | $ | — | $ | 1,901 | $ | — | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | Payable as of | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | June 30, | December 31, | ||||||||||||||||||||||||||||||||||
(In thousands) | Incurred | Forgiven | Incurred | Forgiven | Incurred | Forgiven | Incurred | Forgiven | 2014 | 2013 | |||||||||||||||||||||||||||||
One-time fees and reimbursements: | |||||||||||||||||||||||||||||||||||||||
Acquisition fees and related cost reimbursements | $ | 2,218 | $ | — | $ | 1,852 | $ | — | $ | 4,533 | $ | — | $ | 2,880 | $ | — | $ | — | $ | — | |||||||||||||||||||
Financing coordination fees | 59 | — | — | — | 361 | — | 158 | — | — | — | |||||||||||||||||||||||||||||
Other expense reimbursements | — | — | 19 | — | — | — | 19 | — | — | — | |||||||||||||||||||||||||||||
Ongoing fees: | |||||||||||||||||||||||||||||||||||||||
Asset management services (1) | 2,352 | — | — | — | 2,352 | — | — | — | 2,352 | — | |||||||||||||||||||||||||||||
Property management and leasing fees | — | 704 | — | 268 | — | 1,311 | — | 491 | — | — | |||||||||||||||||||||||||||||
Transfer agent and other professional fees | 615 | — | 226 | — | 1,197 | — | 226 | — | 377 | 235 | |||||||||||||||||||||||||||||
Strategic advisory fees | — | — | 460 | — | — | — | 920 | — | — | — | |||||||||||||||||||||||||||||
Dividends on Class B Units | 12 | — | 37 | — | 151 | — | 54 | — | — | — | |||||||||||||||||||||||||||||
Total related party operation fees and reimbursements | $ | 5,256 | $ | 704 | $ | 2,594 | $ | 268 | $ | 8,594 | $ | 1,311 | $ | 4,257 | $ | 491 | $ | 2,729 | $ | 235 |
Number of Restricted Shares | Weighted-Average Issue Price | |||||
Unvested, December 31, 2013 | 18,000 | $ | 9.23 | |||
Granted | 225,905 | 9.07 | ||||
Vested (1) | (18,000 | ) | 9.23 | |||
Unvested, June 30, 2014 | 225,905 | $ | 9.07 |
Performance Period | Annual Period | Interim Period | ||||
Absolute Component: 4% of any excess Total Return attained above an absolute hurdle measured from the beginning of such period: | 21% | 7% | 14% | |||
Relative Component: 4% of any excess Total Return attained above the Total Return for the performance period of the Peer Group*, subject to a ratable sliding scale factor as follows based on achievement of cumulative Total Return measured from the beginning of such period: | ||||||
• | 100% will be earned if cumulative Total Return achieved is at least: | 18% | 6% | 12% | ||
• | 50% will be earned if cumulative Total Return achieved is: | —% | —% | —% | ||
• | 0% will be earned if cumulative Total Return achieved is less than: | —% | —% | —% | ||
• | a percentage from 50% to 100% calculated by linear interpolation will be earned if the cumulative Total Return achieved is between: | 0% - 18% | 0% - 6% | 0%- 12% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net loss attributable to stockholders (in thousands) | $ | (97,289 | ) | $ | (3,258 | ) | $ | (104,324 | ) | $ | (6,864 | ) | |||
Basic and diluted weighted average shares outstanding | 175,129,424 | 170,124,871 | 178,357,402 | 123,834,119 | |||||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.56 | ) | $ | (0.02 | ) | $ | (0.58 | ) | $ | (0.06 | ) |
June 30, | ||||
2014 | 2013 | |||
Unvested restricted stock | 225,905 | 22,200 | ||
OP units | 1,443,897 | 202 | ||
Class B units | — | 275,135 | ||
Total common stock equivalents | 1,669,802 | 297,537 |
As of June 30, 2014 | Distributions | ||||||||||||||||||||||||||||||||
Net Investment | Non-Controlling Ownership | Net Real Estate Assets Subject to | Mortgage Payables Subject to | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Property Name (Dollar amounts in thousands) | Investment Date | Amount as of June 30, 2014 | Percentage as of June 30, 2014 | Investment Arrangement | Investment Arrangement | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Reliant Rehabilitation - Dallas, TX | Nov. 2011 | $ | — | — | % | $ | — | $ | — | $ | — | $ | 41 | $ | 40 | $ | 81 | ||||||||||||||||
Odessa Regional MOB - Odessa, TX (1) | Dec. 2011 | — | — | % | — | — | — | 4 | — | 4 | |||||||||||||||||||||||
Methodist North MOB - Peoria, IL (1) | Dec. 2011 | — | — | % | — | — | — | 12 | — | 12 | |||||||||||||||||||||||
University of Wisconsin Health MOB - Monona, WI | Mar. 2012 | 2,300 | 25 | % | 8,118 | 5,039 | 48 | 47 | 93 | 93 | |||||||||||||||||||||||
Total | $ | 2,300 | $ | 8,118 | $ | 5,039 | $ | 48 | $ | 104 | $ | 133 | $ | 190 |
Three Months Ended June 30, 2014 | Six Months ended June 30, 2014 | |||||||||||||||||||||||||||||||
(In thousands) | Medical Office Buildings | Triple-Net Buildings | Seniors Housing Communities | Consolidated | Medical Office Buildings | Triple-Net Buildings | Seniors Housing Communities | Consolidated | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Rental income | $ | 20,753 | $ | 8,738 | $ | 26,093 | $ | 55,584 | $ | 40,721 | $ | 13,372 | $ | 49,008 | $ | 103,101 | ||||||||||||||||
Operating expense reimbursements | 4,192 | 75 | — | 4,267 | 8,218 | 233 | — | 8,451 | ||||||||||||||||||||||||
Resident services and fee income | — | — | 4,918 | 4,918 | — | — | 9,206 | 9,206 | ||||||||||||||||||||||||
Total revenues | 24,945 | 8,813 | 31,011 | 64,769 | 48,939 | 13,605 | 58,214 | 120,758 | ||||||||||||||||||||||||
Property operating and maintenance | 4,916 | 163 | 21,159 | 26,238 | 9,688 | 387 | 39,642 | 49,717 | ||||||||||||||||||||||||
Net operating income | $ | 20,029 | $ | 8,650 | $ | 9,852 | $ | 38,531 | $ | 39,251 | $ | 13,218 | $ | 18,572 | $ | 71,041 | ||||||||||||||||
Operating fees to affiliate | 2,352 | 2,352 | ||||||||||||||||||||||||||||||
Acquisition and transaction related | 22,456 | 25,878 | ||||||||||||||||||||||||||||||
Vesting of Class B units for asset management services | 12,917 | 12,917 | ||||||||||||||||||||||||||||||
Fair value of listing note | 58,150 | 58,150 | ||||||||||||||||||||||||||||||
General and administrative | 2,674 | 4,592 | ||||||||||||||||||||||||||||||
Equity-based compensation | 97 | 107 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 31,713 | 60,656 | ||||||||||||||||||||||||||||||
Interest expense | 7,108 | 12,651 | ||||||||||||||||||||||||||||||
Income from preferred equity investment, investment securities and other income | (495 | ) | (795 | ) | ||||||||||||||||||||||||||||
Gain on sale of investment securities | (335 | ) | (335 | ) | ||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests | (817 | ) | (808 | ) | ||||||||||||||||||||||||||||
Net loss attributable to stockholders | $ | (97,289 | ) | $ | (104,324 | ) |
Three Months Ended June 30, 2013 | Six Months ended June 30, 2013 | |||||||||||||||||||||||||||||||
(In thousands) | Medical Office Buildings | Triple-Net Buildings | Seniors Housing Communities | Consolidated | Medical Office Buildings | Triple-Net Buildings | Seniors Housing Communities | Consolidated | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Rental income | $ | 11,325 | $ | 3,001 | $ | 6,559 | $ | 20,885 | $ | 21,027 | $ | 5,806 | $ | 10,039 | $ | 36,872 | ||||||||||||||||
Operating expense reimbursements | 2,336 | 138 | — | 2,474 | 4,523 | 140 | — | 4,663 | ||||||||||||||||||||||||
Resident services and fee income | — | — | 578 | 578 | — | — | 1,080 | 1,080 | ||||||||||||||||||||||||
Total revenues | 13,661 | 3,139 | 7,137 | 23,937 | 25,550 | 5,946 | 11,119 | 42,615 | ||||||||||||||||||||||||
Property operating and maintenance | 2,649 | 146 | 4,649 | 7,444 | 5,265 | 155 | 7,216 | 12,636 | ||||||||||||||||||||||||
Net operating income | $ | 11,012 | $ | 2,993 | $ | 2,488 | $ | 16,493 | $ | 20,285 | $ | 5,791 | $ | 3,903 | $ | 29,979 | ||||||||||||||||
Operating fees to affiliate | — | — | ||||||||||||||||||||||||||||||
Acquisition and transaction related | 2,713 | 4,751 | ||||||||||||||||||||||||||||||
General and administrative | 1,240 | 1,481 | ||||||||||||||||||||||||||||||
Equity-based compensation | 10 | 18 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 12,714 | 24,408 | ||||||||||||||||||||||||||||||
Interest expense | 3,315 | 6,404 | ||||||||||||||||||||||||||||||
Income from preferred equity investment, investment securities and other income | (255 | ) | (255 | ) | ||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests | 14 | 36 | ||||||||||||||||||||||||||||||
Net loss attributable to stockholders | $ | (3,258 | ) | $ | (6,864 | ) |
June 30, | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Assets | ||||||||
Investments in real estate: | ||||||||
Medical office buildings | $ | 976,264 | $ | 948,122 | ||||
Triple-net buildings | 383,692 | 205,367 | ||||||
Seniors Housing Communities | 612,361 | 423,114 | ||||||
Total reportable segments, net | 1,972,317 | 1,576,603 | ||||||
Cash | 28,695 | 103,447 | ||||||
Restricted cash | 2,135 | 1,381 | ||||||
Investment securities, at fair value | 19,427 | 14,670 | ||||||
Preferred equity investment | 8,800 | — | ||||||
Prepaid expenses and other assets | 26,080 | 17,431 | ||||||
Deferred costs, net | 20,071 | 21,041 | ||||||
Total assets | $ | 2,077,525 | $ | 1,734,573 |
Number of Properties | Rentable Square Feet | ||||
Total portfolio as of June 30, 2014 | 147 | 7,522,338 | |||
Acquisitions | 3 | 331,042 | |||
Total portfolio as of August 12, 2014 | 150 | 7,853,380 |
Page | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets as of December 31, 2013 and 2012 | |
Consolidated Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2013, 2012 and 2011 | |
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2013, 2012 and 2011 | |
Consolidated Statements of Cash Flows for the Years Ended December 31, 2013, 2012 and 2011 | |
Notes to Consolidated Financial Statements | |
Financial Statement Schedules: | |
Schedule III - Real Estate and Accumulated Depreciation |
December 31, | |||||||
2013 | 2012 | ||||||
ASSETS | |||||||
Real estate investments, at cost: | |||||||
Land | $ | 107,719 | $ | 48,409 | |||
Buildings, fixtures and improvements | 1,363,858 | 552,085 | |||||
Construction in progress | 11,112 | — | |||||
Acquired intangible lease assets | 181,264 | 77,095 | |||||
Total real estate investments, at cost | 1,663,953 | 677,589 | |||||
Less: accumulated depreciation and amortization | (87,350 | ) | (21,262 | ) | |||
Total real estate investments, net | 1,576,603 | 656,327 | |||||
Cash and cash equivalents | 103,447 | 13,869 | |||||
Restricted cash | 1,381 | 127 | |||||
Investment securities, at fair value | 14,670 | — | |||||
Receivable for sale of common stock | — | 6,943 | |||||
Prepaid expenses and other assets | 17,431 | 5,826 | |||||
Due from affiliate | — | 190 | |||||
Deferred costs, net | 21,041 | 7,386 | |||||
Total assets | $ | 1,734,573 | $ | 690,668 | |||
LIABILITIES AND EQUITY | |||||||
Mortgage notes payable | $ | 259,348 | $ | 200,095 | |||
Mortgage premium, net | 2,769 | 2,903 | |||||
Credit facility | — | 26,000 | |||||
Note payable | — | 2,500 | |||||
Below-market lease liabilities, net | 5,543 | 1,692 | |||||
Derivatives, at fair value | 333 | 643 | |||||
Accounts payable and accrued expenses | 17,460 | 5,669 | |||||
Deferred rent and other liabilities | 2,949 | 917 | |||||
Distributions payable | 10,427 | 2,962 | |||||
Total liabilities | 298,829 | 243,381 | |||||
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued or outstanding at December 31, 2013 and 2012 | — | — | |||||
Common stock, $0.01 par value per share, 300,000,000 authorized, 180,463,898 and 55,584,641 shares issued and outstanding at December 31, 2013 and 2012, respectively | 1,805 | 556 | |||||
Additional paid-in capital | 1,591,941 | 476,157 | |||||
Accumulated other comprehensive loss | (3,243 | ) | (643 | ) | |||
Accumulated deficit | (158,378 | ) | (32,832 | ) | |||
Total stockholders' equity | 1,432,125 | 443,238 | |||||
Non-controlling interests | 3,619 | 4,049 | |||||
Total equity | 1,435,744 | 447,287 | |||||
Total liabilities and equity | $ | 1,734,573 | $ | 690,668 |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenues: | |||||||||||
Rental income | $ | 107,754 | $ | 30,379 | $ | 2,561 | |||||
Operating expense reimbursements | 11,148 | 5,194 | 753 | ||||||||
Resident services and fee income | 6,451 | 165 | — | ||||||||
Total revenues | 125,353 | 35,738 | 3,314 | ||||||||
Operating expenses: | |||||||||||
Property operating and maintenance | 46,665 | 6,564 | 863 | ||||||||
Operating fees to affiliate | — | 987 | — | ||||||||
Acquisition and transaction related | 13,606 | 9,433 | 3,415 | ||||||||
General and administrative | 4,613 | 905 | 429 | ||||||||
Depreciation and amortization | 67,456 | 19,320 | 1,535 | ||||||||
Total operating expenses | 132,340 | 37,209 | 6,242 | ||||||||
Operating loss | (6,987 | ) | (1,471 | ) | (2,928 | ) | |||||
Other income (expenses): | |||||||||||
Interest expense | (15,843 | ) | (9,184 | ) | (1,191 | ) | |||||
Other income | 89 | 18 | 2 | ||||||||
Income from investment securities | 869 | — | — | ||||||||
Loss on sale of investment securities | (300 | ) | — | — | |||||||
Total other expense | (15,185 | ) | (9,166 | ) | (1,189 | ) | |||||
Net loss | (22,172 | ) | (10,637 | ) | (4,117 | ) | |||||
Net loss (income) attributable to non-controlling interests | (58 | ) | 2 | 32 | |||||||
Net loss attributable to stockholders | (22,230 | ) | (10,635 | ) | (4,085 | ) | |||||
Other comprehensive loss: | |||||||||||
Designated derivatives, fair value adjustment | 310 | (397 | ) | (246 | ) | ||||||
Unrealized loss on investment securities, net | (2,910 | ) | — | — | |||||||
Comprehensive loss attributable to stockholders | $ | (24,830 | ) | $ | (11,032 | ) | $ | (4,331 | ) | ||
Basic and diluted weighted average shares outstanding | 151,683,551 | 25,008,063 | 1,649,649 | ||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.15 | ) | $ | (0.43 | ) | $ | (2.48 | ) |
Common Stock | ||||||||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||||||
Balance, December 31, 2010 | 20,000 | $ | — | $ | 200 | $ | — | $ | (1 | ) | $ | 199 | $ | — | $ | 199 | ||||||||||||||
Issuance of common stock | 6,924,696 | 70 | 68,811 | — | — | 68,881 | — | 68,881 | ||||||||||||||||||||||
Common stock offering costs, commissions and dealer manager fees | — | — | (12,308 | ) | — | — | (12,308 | ) | — | (12,308 | ) | |||||||||||||||||||
Common stock issued through distribution reinvestment plan | 31,438 | — | 299 | — | — | 299 | — | 299 | ||||||||||||||||||||||
Common stock repurchases | (6,241 | ) | — | (62 | ) | — | — | (62 | ) | — | (62 | ) | ||||||||||||||||||
Share-based compensation | 13,556 | — | 57 | — | — | 57 | — | 57 | ||||||||||||||||||||||
Distributions declared | — | — | — | — | (1,022 | ) | (1,022 | ) | — | (1,022 | ) | |||||||||||||||||||
Contributions from non-controlling interest holders | — | — | — | — | — | — | 2,144 | 2,144 | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | (246 | ) | — | (246 | ) | — | (246 | ) | |||||||||||||||||||
Net loss | — | — | — | — | (4,085 | ) | (4,085 | ) | (32 | ) | (4,117 | ) | ||||||||||||||||||
Balance, December 31, 2011 | 6,983,449 | 70 | 56,997 | (246 | ) | (5,108 | ) | 51,713 | 2,112 | 53,825 | ||||||||||||||||||||
Issuance of common stock | 47,997,987 | 480 | 477,532 | — | — | 478,012 | — | 478,012 | ||||||||||||||||||||||
Common stock offering costs, commissions and dealer manager fees | — | — | (63,990 | ) | — | — | (63,990 | ) | — | (63,990 | ) | |||||||||||||||||||
Common stock issued through distribution reinvestment plan | 690,994 | 7 | 6,557 | — | — | 6,564 | — | 6,564 | ||||||||||||||||||||||
Common stock repurchases | (108,361 | ) | (1 | ) | (1,065 | ) | — | — | (1,066 | ) | — | (1,066 | ) | |||||||||||||||||
Share-based compensation | 20,572 | — | 126 | — | — | 126 | — | 126 | ||||||||||||||||||||||
Distributions declared | — | — | — | — | (17,089 | ) | (17,089 | ) | — | (17,089 | ) | |||||||||||||||||||
Contributions from non-controlling interest holders | — | — | — | — | — | — | 2,300 | 2,300 | ||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | (361 | ) | (361 | ) | ||||||||||||||||||||
Other comprehensive loss | — | — | — | (397 | ) | — | (397 | ) | — | (397 | ) | |||||||||||||||||||
Net loss | — | — | — | — | (10,635 | ) | (10,635 | ) | (2 | ) | (10,637 | ) | ||||||||||||||||||
Balance, December 31, 2012 | 55,584,641 | 556 | 476,157 | (643 | ) | (32,832 | ) | 443,238 | 4,049 | 447,287 | ||||||||||||||||||||
Issuance of common stock | 119,784,507 | 1,199 | 1,188,762 | — | — | 1,189,961 | — | 1,189,961 | ||||||||||||||||||||||
Common stock offering costs, commissions and dealer manager fees | — | — | (121,209 | ) | — | — | (121,209 | ) | — | (121,209 | ) | |||||||||||||||||||
Common stock issued through distribution reinvestment plan | 5,353,449 | 53 | 50,804 | — | — | 50,857 | — | 50,857 | ||||||||||||||||||||||
Common stock repurchases | (272,366 | ) | (3 | ) | (2,651 | ) | — | — | (2,654 | ) | — | (2,654 | ) | |||||||||||||||||
Share-based compensation | 13,667 | — | 114 | — | — | 114 | — | 114 | ||||||||||||||||||||||
Distributions declared | — | — | — | — | (103,316 | ) | (103,316 | ) | — | (103,316 | ) | |||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | (380 | ) | (380 | ) | ||||||||||||||||||||
Increase in interest in Odessa Regional MOB and Methodist North MOB | — | — | (36 | ) | — | — | (36 | ) | (108 | ) | (144 | ) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (2,600 | ) | — | (2,600 | ) | — | (2,600 | ) | |||||||||||||||||||
Net income (loss) | — | — | — | — | (22,230 | ) | (22,230 | ) | 58 | (22,172 | ) | |||||||||||||||||||
Balance, December 31, 2013 | 180,463,898 | $ | 1,805 | $ | 1,591,941 | $ | (3,243 | ) | $ | (158,378 | ) | $ | 1,432,125 | $ | 3,619 | $ | 1,435,744 |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss attributable to stockholders | $ | (22,230 | ) | $ | (10,635 | ) | $ | (4,085 | ) | ||
Adjustment to reconcile net loss attributable to stockholders to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | 42,526 | 15,066 | 1,174 | ||||||||
Amortization of intangible assets | 24,930 | 4,254 | 361 | ||||||||
Amortization of deferred financing costs | 3,982 | 1,267 | 122 | ||||||||
Amortization of mortgage premium | (826 | ) | (315 | ) | — | ||||||
Accretion of below-market lease liabilities and amortization of above-market lease assets, net | 444 | 306 | 59 | ||||||||
Net loss attributable to non-controlling interests | 58 | (2 | ) | (32 | ) | ||||||
Bad debt expense | 735 | — | — | ||||||||
Share-based compensation | 114 | 126 | 57 | ||||||||
Loss on sale of investment securities | 300 | — | — | ||||||||
Changes in assets and liabilities: | |||||||||||
Prepaid expenses and other assets | (9,248 | ) | (5,076 | ) | (750 | ) | |||||
Due from affiliate | 190 | — | — | ||||||||
Accounts payable and accrued expenses | 10,004 | 2,046 | 772 | ||||||||
Deferred rent and other liabilities | 2,032 | 756 | 161 | ||||||||
Net cash provided by (used in) operating activities | 53,011 | 7,793 | (2,161 | ) | |||||||
Cash flows from investing activities: | |||||||||||
Investment in real estate and other assets | (920,541 | ) | (452,546 | ) | (53,348 | ) | |||||
Deposits for real estate | (3,590 | ) | — | — | |||||||
Capital expenditures | (707 | ) | — | — | |||||||
Purchase of investment securities | (19,593 | ) | — | — | |||||||
Proceeds from sale of investment securities | 1,713 | — | — | ||||||||
Net cash used in investing activities | (942,718 | ) | (452,546 | ) | (53,348 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from notes payable | — | — | 4,500 | ||||||||
Payments of note payable | (2,500 | ) | — | (2,000 | ) | ||||||
Proceeds from mortgage notes payable | — | 34,777 | — | ||||||||
Payments of mortgage notes payable | (474 | ) | (42 | ) | (20 | ) | |||||
Proceeds from credit facility | — | 65,000 | — | ||||||||
Payments on credit facility | (26,000 | ) | (39,000 | ) | — | ||||||
Payments of deferred financing costs | (17,160 | ) | (5,996 | ) | (2,779 | ) | |||||
Proceeds from issuance of common stock | 1,196,904 | 471,474 | 68,476 | ||||||||
Common stock repurchases | (2,404 | ) | (701 | ) | (37 | ) | |||||
Payments of offering costs and fees related to stock issuances | (122,309 | ) | (63,372 | ) | (11,549 | ) | |||||
Distributions paid | (44,994 | ) | (7,910 | ) | (376 | ) | |||||
Due from/to affiliate | — | (190 | ) | (80 | ) | ||||||
Contributions from non-controlling interest holders | — | — | 4,444 | ||||||||
Payments to non-controlling interest holders | (144 | ) | — | — | |||||||
Distributions to non-controlling interest holders | (380 | ) | (361 | ) | — | ||||||
Restricted cash | (1,254 | ) | (95 | ) | (32 | ) | |||||
Net cash provided by financing activities | 979,285 | 453,584 | 60,547 | ||||||||
Net change in cash | 89,578 | 8,831 | 5,038 | ||||||||
Cash and cash equivalents, beginning of period | 13,869 | 5,038 | — | ||||||||
Cash and cash equivalents, end of period | $ | 103,447 | $ | 13,869 | $ | 5,038 |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Supplemental Disclosures: | |||||||||||
Cash paid for interest | $ | 12,031 | $ | 7,801 | $ | 629 | |||||
Non-Cash Investing and Financing Activities: | |||||||||||
Mortgage notes payable assumed or used to acquire investments in real estate | $ | 59,727 | $ | 54,639 | $ | 110,741 | |||||
Premiums on assumed mortgage notes payable | 692 | 3,218 | — | ||||||||
Liabilities assumed in real estate acquisitions | 2,637 | 968 | 396 | ||||||||
Common stock issued through distribution reinvestment plan | 50,857 | 6,564 | 299 | ||||||||
Reclassification of deferred offering costs | — | — | 844 |
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Intangible assets: | ||||||||
In-place leases, net of accumulated amortization of $28,763 and $4,568 at December 31, 2013 and 2012, respectively | $ | 143,819 | $ | 68,247 | ||||
Above-market leases, net of accumulated amortization of $1,239 and $516 at December 31, 2013 and 2012, respectively | 7,443 | 3,764 | ||||||
Total intangible lease assets, net | $ | 151,262 | $ | 72,011 | ||||
Intangible liabilities: | ||||||||
Below-market leases, net of accumulated accretion of $564 and $143 at December 31, 2013 and 2012, respectively | $ | 5,543 | $ | 1,692 | ||||
Total intangible lease liabilities, net | $ | 5,543 | $ | 1,692 |
(In thousands) | Weighted- Average Amortization Period | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
In-place leases | 8.8 | $ | 32,916 | $ | 14,976 | $ | 14,286 | $ | 13,425 | $ | 11,727 | |||||||||||
Above-market lease assets | 8.6 | $ | (1,171 | ) | $ | (1,127 | ) | $ | (1,063 | ) | $ | (942 | ) | $ | (687 | ) | ||||||
Below-market lease liabilities | 6.9 | 795 | 785 | 752 | 522 | 356 | ||||||||||||||||
Total to be deducted from rental income | $ | (376 | ) | $ | (342 | ) | $ | (311 | ) | $ | (420 | ) | $ | (331 | ) |
Number of Requests | Number of Shares Repurchased | Average Price per Share | ||||||
Year ended December 31, 2011 | 3 | 6,241 | $ | 10.00 | ||||
Year ended December 31, 2012 | 27 | 108,361 | 9.83 | |||||
Year ended December 31, 2013 (1) | 92 | 272,366 | 9.75 | |||||
Cumulative repurchase requests as of December 31, 2013 (1) | 122 | 386,968 | $ | 9.77 |
(1) | Includes 25 unfulfilled repurchase requests consisting of 66,553 shares at an average price per share of $9.62, which were approved for repurchase as of December 31, 2013 and completed in February 2014. This liability is included in accounts payable and accrued expenses on the Company's consolidated balance sheet. |
Year Ended December 31, 2013 | ||||||||
(In thousands) | Expense | Deferred | ||||||
Federal | $ | 296 | $ | 90 | ||||
State | 228 | 20 | ||||||
$ | 524 | $ | 110 |
Year Ended December 31, | ||||||||||||
(Dollar amounts in thousands) | 2013 | 2012 | 2011 | |||||||||
Real estate investments, at cost: | ||||||||||||
Land | $ | 59,310 | $ | 38,193 | $ | 10,216 | ||||||
Buildings, fixtures and improvements | 811,596 | 421,572 | 130,594 | |||||||||
Construction in progress | 11,112 | — | — | |||||||||
Total tangible assets | 882,018 | 459,765 | 140,810 | |||||||||
Acquired intangibles: | ||||||||||||
In-place leases | 100,480 | 52,169 | 20,695 | |||||||||
Above-market lease assets | 5,371 | 744 | 3,536 | |||||||||
Below-market lease liabilities | (4,272 | ) | (1,307 | ) | (556 | ) | ||||||
Total assets acquired, net | 983,597 | 511,371 | 164,485 | |||||||||
Mortgage notes payable assumed or used to acquire real estate investments | (59,727 | ) | (54,639 | ) | (110,741 | ) | ||||||
Premium on mortgages assumed | (692 | ) | (3,218 | ) | — | |||||||
Other liabilities assumed | (2,637 | ) | (968 | ) | (396 | ) | ||||||
Cash paid for acquired real estate investments | $ | 920,541 | $ | 452,546 | $ | 53,348 | ||||||
Number of properties purchased | 64 | 36 | 14 |
Number of Properties | Base Purchase Price | ||||
(In thousands) | |||||
Year ended December 31, 2011 | 14 | $ | 164,485 | ||
Year ended December 31, 2012 | 36 | 508,108 | |||
Year ended December 31, 2013 | 64 | 970,000 | |||
Total portfolio as of December 31, 2013 | 114 | $ | 1,642,593 |
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Pro forma revenues | $ | 208,815 | $ | 169,907 | $ | 51,468 | ||||||
Pro forma net income attributable to stockholders | $ | (6,568 | ) | $ | (14,088 | ) | $ | (20,563 | ) |
(In thousands) | Future Minimum Base Rental Cash Payments | |||
2014 | $ | 92,407 | ||
2015 | 93,373 | |||
2016 | 93,719 | |||
2017 | 92,314 | |||
2018 | 86,782 | |||
Thereafter | 552,618 | |||
$ | 1,011,213 |
December 31, | ||||||
Tenant | 2013 | 2012 | 2011 | |||
UnitedHealth Group Incorporated | 9.9% | * | * | |||
Reliant Rehabilitation | * | 9.6% | 22.9% | |||
Carson Tahoe Regional Healthcare | * | * | 11.4% | |||
Global Rehabilitation Hospital | * | * | 10.1% |
* | Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all tenants as of the period specified. |
December 31, | ||||||
State | 2013 | 2012 | 2011 | |||
Florida | 10.2% | * | * | |||
Georgia | 18.2% | 22.4% | * | |||
Illinois | * | 10.8% | 14.5% | |||
Nevada | * | * | 31.1% | |||
Oregon | 10.3% | * | * | |||
Texas | 14.0% | 21.3% | 45.8% |
* | State's annualized rental income on a straight-line basis was not 10% or more of total annualized rental income for all portfolio properties as of the period specified. |
December 31, 2013 | ||||||||||||||||
(In thousands) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Investment securities | $ | 17,580 | $ | 202 | $ | (3,112 | ) | $ | 14,670 |
Outstanding Loan Amount as of December 31, | Effective | ||||||||||||||||
Portfolio | Encumbered Properties | 2013 | 2012 | Interest Rate | Interest Rate | Maturity | |||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Texarkana ASC - Texarkana, TX | 1 | $ | 2,143 | $ | 2,187 | 5.58 | % | Fixed | Jun. 2016 | ||||||||
Carson Tahoe Specialty Medical Center - Carson City, NV (1) | 3 | 21,751 | 21,751 | 5.08 | % | Fixed | Sep. 2015 | ||||||||||
Durango Medical Plaza - Las Vegas, NV (1) | 1 | 17,172 | 17,172 | 5.08 | % | Fixed | Sep. 2015 | ||||||||||
CareMeridian Rehabilitation - Phoenix, AZ (1) | 1 | 6,936 | 6,936 | 5.08 | % | Fixed | Sep. 2015 | ||||||||||
Reliant Rehabilitation - Dallas, TX (1) | 1 | 24,850 | 24,850 | 5.15 | % | Fixed | Sep. 2015 | ||||||||||
Select Rehabilitation - San Antonio, TX (1) | 1 | 12,714 | 12,714 | 5.15 | % | Fixed | Sep. 2015 | ||||||||||
Spring Creek Medical Plaza - Tomball, TX (1) | 1 | 7,477 | 7,477 | 5.15 | % | Fixed | Sep. 2015 | ||||||||||
Odessa Regional MOB - Odessa, TX | 1 | 4,047 | 4,047 | 4.09 | % | (2) | Fixed | Dec. 2016 | |||||||||
Methodist North MOB - Peoria, IL | 1 | 13,544 | 13,544 | 3.99 | % | (2) | Fixed | Dec. 2016 | |||||||||
University of Wisconsin Health MOB - Monona, WI | 1 | 5,039 | 5,039 | 4.00 | % | Fixed | Apr. 2017 | ||||||||||
Reliant Rehabilitation - Houston, TX (1) | 1 | 13,437 | 13,437 | 4.98 | % | Fixed | Sep. 2015 | ||||||||||
Village Healthcare Center - Santa Ana (1) | 1 | 1,906 | 1,906 | 4.98 | % | Fixed | Sep. 2015 | ||||||||||
Sisters of Mercy Building - Springfield, MO | 1 | 5,500 | 5,500 | 4.11 | % | Fixed | Sep. 2017 | ||||||||||
East Pointe Medical Plaza - Lehigh Acres, FL | 1 | 5,260 | 5,260 | 4.11 | % | Fixed | Sep. 2017 | ||||||||||
Unitron Hearing Building - Plymouth, MN | 1 | 4,000 | 4,000 | 4.11 | % | Fixed | Sep. 2017 | ||||||||||
Carson Tahoe MOB West - Carson City, NV | 1 | 4,675 | 4,675 | 3.88 | % | (2) | Fixed | Jun. 2017 | |||||||||
Aurora Health Care Portfolio | 3 | 49,600 | 49,600 | 5.60 | % | Fixed | Jan. 2017 | ||||||||||
Princeton Village - Clackamas, OR | 1 | 3,114 | — | 7.48 | % | Fixed | Jan. 2031 | ||||||||||
Pelican Pointe - Klamath Falls, OR | 1 | 12,460 | — | 5.16 | % | Fixed | Apr. 2022 | ||||||||||
Fayette MOB - Fayetteville, GA | 1 | 6,986 | — | 5.18 | % | Fixed | Sep. 2015 | ||||||||||
Benton House - Anderson, SC | 1 | 8,149 | — | 4.86 | % | Fixed | Dec. 2018 | ||||||||||
Benton House - Covington, GA | 1 | 8,121 | — | 5.26 | % | Fixed | May 2019 | ||||||||||
Arbor Terrace - Asheville, SC | 1 | 9,497 | — | 5.58 | % | Fixed | Feb. 2018 | ||||||||||
Arbor Terrace - Decatur, GA | 1 | 10,970 | — | 5.57 | % | Fixed | Jan. 2018 | ||||||||||
Total | 28 | $ | 259,348 | $ | 200,095 | 5.09 | % | (3) |
(1) | These mortgages, aggregating $106.2 million, represent the first, second and third tranches of a multi-tranche mortgage loan agreement to provide funding for a portfolio of eight properties. The mortgages for each of the properties are cross-collateralized with one another and in the event that the Company defaults on one of the mortgages, the lender may look to the other properties as collateral. |
(2) | Fixed as a result of entering into a swap agreement. |
(3) | Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2013. |
(In thousands) | Future Principal Payments | |||
2014 | $ | 1,038 | ||
2015 | 113,975 | |||
2016 | 20,545 | |||
2017 | 75,041 | |||
2018 | 27,346 | |||
Thereafter | 21,403 | |||
$ | 259,348 |
(In thousands) | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Total | ||||||||||||
December 31, 2013 | ||||||||||||||||
Interest rate swaps | $ | — | $ | (333 | ) | $ | — | $ | (333 | ) | ||||||
Investment securities | $ | 14,670 | $ | — | $ | — | $ | 14,670 | ||||||||
December 31, 2012 | ||||||||||||||||
Interest rate swaps | $ | — | $ | (643 | ) | $ | — | $ | (643 | ) |
Carrying Amount at | Fair Value at | Carrying Amount at | Fair Value at | |||||||||||||||
(In thousands) | Level | December 31, 2013 | December 31, 2013 | December 31, 2012 | December 31, 2012 | |||||||||||||
Mortgage notes payable and premiums, net | 3 | $ | 262,117 | $ | 266,242 | $ | 202,998 | $ | 209,906 | |||||||||
Credit facility | 3 | $ | — | $ | — | $ | 26,000 | $ | 26,000 | |||||||||
Note payable | 3 | $ | — | $ | — | $ | 2,500 | $ | 2,851 |
December 31, 2013 | December 31, 2012 | |||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount | Number of Instruments | Notional Amount | ||||||||
(In thousands) | (In thousands) | |||||||||||
Interest Rate Swaps | 3 | $ | 22,266 | 3 | $ | 22,266 |
(In thousands) | Balance Sheet Location | December 31, 2013 | December 31, 2012 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest Rate Swaps | Derivatives, at fair value | $ | (333 | ) | $ | (643 | ) |
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Amount of income (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion) | $ | 62 | $ | (624 | ) | $ | (246 | ) | ||||
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion) | $ | (248 | ) | $ | (227 | ) | $ | — | ||||
Amount of gain (loss) recognized in income on derivative instruments (ineffective portion and amount excluded from effectiveness testing) | $ | — | $ | — | $ | — |
Gross Amounts Not Offset on the Balance Sheet | ||||||||||||||||||||||||
Derivatives (In thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset on the Balance Sheet | Net Amounts of Liabilities presented on the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
December 31, 2013 | $ | (333 | ) | $ | — | $ | (333 | ) | $ | — | $ | — | $ | (333 | ) | |||||||||
December 31, 2012 | $ | (643 | ) | $ | — | $ | (643 | ) | $ | — | $ | — | $ | (643 | ) |
(In thousands) | Future Minimum Base Cash Rental Payments Due | |||
2014 | $ | 613 | ||
2015 | 620 | |||
2016 | 626 | |||
2017 | 633 | |||
2018 | 656 | |||
Thereafter | 23,109 | |||
$ | 26,257 |
Year Ended December 31, | Payable as of December 31, | |||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||||||
Total commissions and fees from the Dealer Manager (1) | $ | 117,343 | $ | 47,412 | $ | 6,733 | $ | (18 | ) | $ | 625 |
(1) | Includes reimbursements received for selling commissions and dealer manager fees as a result of share purchase cancellations related to common stock sales prior to the close of the IPO. |
Year Ended December 31, | Payable as of December 31, | |||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||||||
Fees and expense reimbursements from the Advisor and Dealer Manager | $ | 1,901 | $ | 13,717 | $ | 2,997 | $ | — | $ | 73 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | Payable as of December 31, | |||||||||||||||||||||||||||||
(In thousands) | Incurred | Forgiven | Incurred | Forgiven | Incurred | Forgiven | 2013 | 2012 | ||||||||||||||||||||||||
One-time fees and reimbursements: | ||||||||||||||||||||||||||||||||
Acquisition fees and related cost reimbursements, net(1) | $ | 5,909 | $ | — | $ | 7,851 | $ | — | $ | 2,699 | $ | — | $ | — | $ | 143 | ||||||||||||||||
Transaction fee | 306 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Financing coordination fees | 8,166 | — | 2,882 | — | 1,279 | — | — | — | ||||||||||||||||||||||||
Other expense reimbursements | — | — | 149 | — | — | — | — | — | ||||||||||||||||||||||||
Ongoing fees: | ||||||||||||||||||||||||||||||||
Asset management fees(2) | — | — | 987 | 597 | — | 154 | — | — | ||||||||||||||||||||||||
Property management | — | 1,394 | — | 446 | — | 39 | — | — | ||||||||||||||||||||||||
Transfer agent and other professional fees | 1,475 | — | — | — | — | — | 235 | — | ||||||||||||||||||||||||
Strategic advisory fees | 920 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions on Class B Units | 220 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total related party operation fees and reimbursements | $ | 16,996 | $ | 1,394 | $ | 11,869 | $ | 1,043 | $ | 3,978 | $ | 193 | $ | 235 | $ | 143 |
Number of Common Shares | Weighted-Average Issue Price | |||||
Unvested, January 1, 2011 | — | $ | — | |||
Granted | 9,000 | 10.00 | ||||
Unvested, December 31, 2011 | 9,000 | 10.00 | ||||
Granted | 12,000 | 9.25 | ||||
Vested | (1,800 | ) | 10.00 | |||
Forfeitures | (2,400 | ) | 10.00 | |||
Unvested, December 31, 2012 | 16,800 | 9.46 | ||||
Granted | 12,000 | 9.00 | ||||
Vested | (10,800 | ) | 9.28 | |||
Unvested, December 31, 2013 | 18,000 | $ | 9.23 |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Shares issued in lieu of cash | 1,667 | 10,972 | 4,556 | ||||||||
Value of shares issued in lieu of cash (in thousands) | $ | 15 | $ | 99 | $ | 41 |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net loss attributable to stockholders (in thousands) | $ | (22,230 | ) | $ | (10,635 | ) | $ | (4,085 | ) | ||
Basic and diluted weighted average common shares outstanding | 151,683,551 | 25,008,063 | 1,649,649 | ||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.15 | ) | $ | (0.43 | ) | $ | (2.48 | ) |
December 31, | ||||||||
2013 | 2012 | 2011 | ||||||
Unvested restricted stock | 18,000 | 16,800 | 9,000 | |||||
OP Units | 202 | 202 | 202 | |||||
Class B Units | 709,180 | — | — | |||||
Total common share equivalents | 727,382 | 17,002 | 9,202 |
As of December 31, 2013 | As of December 31, 2012 | Distributions | ||||||||||||||||||||||||||||||
Net Investment | Non-Controlling Ownership | Net Real Estate Assets Subject to | Mortgage Payables Subject to | Net Real Estate Assets Subject to | Mortgage Payables Subject to | Year Ended December 31, | ||||||||||||||||||||||||||
Property Name (Dollar amounts in thousands) | Investment Date | Amount as of December 31, 2013 | Percentage as of December 31, 2013 | Investment Arrangement | Investment Arrangement | Investment Arrangement | Investment Arrangement | 2013 | 2012 | |||||||||||||||||||||||
Reliant Rehabilitation - Dallas, TX | Nov. 2011 | $ | 2,000 | 20% | $ | 31,735 | $ | 24,850 | $ | 32,981 | $ | 24,850 | $ | 162 | $ | 166 | ||||||||||||||||
Odessa Regional MOB - Odessa, TX (1) | Dec. 2011 | — | —% | — | — | 7,036 | 4,047 | 7 | — | |||||||||||||||||||||||
Methodist North MOB - Peoria, IL (1) | Dec. 2011 | — | —% | — | — | 23,795 | 13,544 | 24 | — | |||||||||||||||||||||||
University of Wisconsin Health MOB - Monona, WI | Mar. 2012 | 2,300 | 25% | 8,739 | 5,039 | 8,993 | 5,039 | 187 | 195 | |||||||||||||||||||||||
Total | $ | 4,300 | $ | 40,474 | $ | 29,889 | $ | 72,805 | $ | 47,480 | $ | 380 | $ | 361 |
Year Ended December 31, 2013 | ||||||||||||||||
(In thousands) | Medical Office Buildings and Outpatient Facilities | Seniors Housing Communities | Hospitals, Post-Acute Care and Other Facilities | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 45,917 | $ | 41,890 | $ | 19,947 | $ | 107,754 | ||||||||
Operating expense reimbursements | 8,352 | — | 2,796 | 11,148 | ||||||||||||
Resident services and fee income | — | 6,451 | — | 6,451 | ||||||||||||
Total revenues | 54,269 | 48,341 | 22,743 | 125,353 | ||||||||||||
Property operating and maintenance | 10,235 | 33,152 | 3,278 | 46,665 | ||||||||||||
Net operating income | $ | 44,034 | $ | 15,189 | $ | 19,465 | 78,688 | |||||||||
Operating fees to affiliate | — | |||||||||||||||
Acquisition and transaction related | 13,606 | |||||||||||||||
General and administrative | 4,613 | |||||||||||||||
Depreciation and amortization | 67,456 | |||||||||||||||
Interest expense | 15,843 | |||||||||||||||
Income from investments | (869 | ) | ||||||||||||||
Other income | (89 | ) | ||||||||||||||
Loss on sale of investment securities | 300 | |||||||||||||||
Net loss attributable to non-controlling interests | 58 | |||||||||||||||
Net loss attributable to stockholders | $ | (22,230 | ) |
Year Ended December 31, 2012 | ||||||||||||||||
(In thousands) | Medical Office Buildings and Outpatient Facilities | Seniors Housing Communities | Hospitals, Post-Acute Care and Other Facilities | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 15,839 | $ | 1,740 | $ | 12,800 | $ | 30,379 | ||||||||
Operating expense reimbursements | 2,520 | — | 2,674 | 5,194 | ||||||||||||
Resident services and fee income | — | 165 | — | 165 | ||||||||||||
Total revenues | 18,359 | 1,905 | 15,474 | 35,738 | ||||||||||||
Property operating and maintenance | 2,734 | 1,101 | 2,729 | 6,564 | ||||||||||||
Net operating income | $ | 15,625 | $ | 804 | $ | 12,745 | 29,174 | |||||||||
Operating fees to affiliate | 987 | |||||||||||||||
Acquisition and transaction related | 9,433 | |||||||||||||||
General and administrative | 905 | |||||||||||||||
Depreciation and amortization | 19,320 | |||||||||||||||
Interest expense | 9,184 | |||||||||||||||
Income from investments | — | |||||||||||||||
Other income | (18 | ) | ||||||||||||||
Loss on sale of investment securities | — | |||||||||||||||
Net loss attributable to non-controlling interests | (2 | ) | ||||||||||||||
Net loss attributable to stockholders | $ | (10,635 | ) |
Year Ended December 31, 2011 | ||||||||||||||||
(In thousands) | Medical Office Buildings and Outpatient Facilities | Seniors Housing Communities | Hospitals, Post-Acute Care and Other Facilities | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 1,086 | $ | — | $ | 1,475 | $ | 2,561 | ||||||||
Operating expense reimbursements | 173 | — | 580 | 753 | ||||||||||||
Resident services and fee income | — | — | — | — | ||||||||||||
Total revenues | 1,259 | — | 2,055 | 3,314 | ||||||||||||
Property operating and maintenance | 280 | — | 583 | 863 | ||||||||||||
Net operating income | $ | 979 | $ | — | $ | 1,472 | 2,451 | |||||||||
Operating fees to affiliate | — | |||||||||||||||
Acquisition and transaction related | 3,415 | |||||||||||||||
General and administrative | 429 | |||||||||||||||
Depreciation and amortization | 1,535 | |||||||||||||||
Interest expense | 1,191 | |||||||||||||||
Income from investments | — | |||||||||||||||
Other income | (2 | ) | ||||||||||||||
Loss on sale of investment securities | — | |||||||||||||||
Net loss attributable to non-controlling interests | (32 | ) | ||||||||||||||
Net loss attributable to stockholders | $ | (4,085 | ) |
December 31, | December 31, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Assets | ||||||||
Investments in real estate: | ||||||||
Medical office buildings and outpatient facilities | $ | 779,228 | $ | 407,062 | ||||
Seniors housing communities | 442,863 | 85,249 | ||||||
Hospitals, post-acute care and other facilities | 354,512 | 164,016 | ||||||
Total reportable segments, net | 1,576,603 | 656,327 | ||||||
Cash | 103,447 | 13,869 | ||||||
Restricted cash | 1,381 | 127 | ||||||
Investment securities, at fair value | 14,670 | — | ||||||
Receivable for sale of common stock | — | 6,943 | ||||||
Prepaid expenses and other assets | 17,431 | 5,826 | ||||||
Due from affiliate | — | 190 | ||||||
Deferred costs, net | 21,041 | 7,386 | ||||||
Total assets | $ | 1,734,573 | $ | 690,668 |
Quarters Ended | ||||||||||||||||
(In thousands, except for share amounts) | March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||
Total revenues | $ | 18,678 | $ | 23,937 | $ | 34,147 | $ | 48,591 | ||||||||
Net loss attributable to stockholders | $ | (3,606 | ) | $ | (3,258 | ) | $ | (5,475 | ) | $ | (9,891 | ) | ||||
Basic and diluted weighted average common shares outstanding | 77,029,025 | 170,124,871 | 178,231,121 | 179,929,602 | ||||||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) |
Quarters Ended | ||||||||||||||||
(In thousands, except for share amounts) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | ||||||||||||
Total revenues | $ | 4,707 | $ | 6,875 | $ | 10,194 | $ | 13,962 | ||||||||
Net loss attributable to stockholders | $ | (1,424 | ) | $ | (3,456 | ) | $ | (2,061 | ) | $ | (3,694 | ) | ||||
Basic and diluted weighted average common shares outstanding | 9,742,753 | 18,017,661 | 28,039,574 | 43,990,171 | ||||||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.15 | ) | $ | (0.19 | ) | $ | (0.07 | ) | $ | (0.08 | ) |
Quarters Ended | ||||||||||||||||
(In thousands, except for share amounts) | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||
Total revenues | $ | — | $ | 12 | $ | 436 | $ | 2,866 | ||||||||
Net loss attributable to stockholders | $ | (35 | ) | $ | (277 | ) | $ | (1,118 | ) | $ | (2,655 | ) | ||||
Basic and diluted weighted average common shares outstanding | 20,000 | 230,133 | 1,510,422 | 4,787,183 | ||||||||||||
Basic and diluted net loss per share attributable to stockholders | NM | $ | (1.20 | ) | $ | (0.74 | ) | $ | (0.55 | ) |
Number of Properties | Rentable Square Feet | Base Purchase Price (1) | |||||||
(In thousands) | |||||||||
Total portfolio as of December 31, 2013 | 114 | 5,830,271 | $ | 1,642,593 | |||||
Acquisitions | 6 | 393,264 | 129,525 | ||||||
Total portfolio as of February 26, 2014 | 120 | 6,223,535 | $ | 1,772,118 |
Initial Costs | Subsequent to Acquisition | |||||||||||||||||||||||||||
Property | State | Acquisition Date | Encumbrances at December 31, 2013 | Land | Building and Improvements | Building and Improvements | Gross Amount at December 31, 2013 (1) (2) | Accumulated Depreciation (3) (4) | ||||||||||||||||||||
Texarkana ASC - Texarkana | TX | 6/21/2011 | $ | 2,143 | $ | 786 | $ | 3,143 | $ | — | $ | 3,929 | $ | 468 | ||||||||||||||
DaVita Dialysis - Marked Tree | AR | 6/30/2011 | (5) | — | 64 | 1,219 | — | 1,283 | 180 | |||||||||||||||||||
DaVita Dialysis - Rockford | IL | 7/25/2011 | (5) | — | — | 1,797 | — | 1,797 | 204 | |||||||||||||||||||
Carson Tahoe Specialty Medical Center - Carson City | NV | 9/19/2011 | 21,751 | 2,205 | 22,934 | — | 25,139 | 3,349 | ||||||||||||||||||||
Durango Medical Plaza - Las Vegas | NV | 9/19/2011 | 17,172 | 2,389 | 16,065 | 56 | 18,428 | (6) | 2,604 | |||||||||||||||||||
CareMeridian Rehabilitation - Phoenix | AZ | 9/15/2011 | 6,936 | 804 | 7,236 | — | 8,040 | 923 | ||||||||||||||||||||
Reliant Rehabilitation - Dallas | TX | 11/22/2011 | 24,850 | 1,422 | 27,024 | — | 28,446 | 3,190 | ||||||||||||||||||||
Select Rehabilitation - San Antonio | TX | 11/22/2011 | 12,714 | 1,447 | 13,027 | — | 14,474 | 1,538 | ||||||||||||||||||||
Spring Creek Medical Plaza - Tomball | TX | 11/22/2011 | 7,477 | 705 | 7,314 | 1 | 7,490 | (6) | 875 | |||||||||||||||||||
Odessa Regional MOB- Odessa | TX | 12/19/2011 | 4,047 | — | 6,463 | — | 6,463 | 797 | ||||||||||||||||||||
Methodist North MOB - Peoria | IL | 12/19/2011 | 13,544 | — | 21,917 | — | 21,917 | 2,131 | ||||||||||||||||||||
Cooper Health MOB I - Willingboro | NJ | 12/29/2011 | (5) | — | 394 | 2,455 | 62 | 2,911 | 288 | |||||||||||||||||||
Village Healthcare Center - Santa Ana | CA | 1/13/2012 | 1,906 | 1,584 | 2,376 | — | 3,960 | 269 | ||||||||||||||||||||
BioLife Sciences Building - Denton | TX | 1/20/2012 | (5) | — | 1,027 | 4,109 | — | 5,136 | 370 | |||||||||||||||||||
University of Wisconsin Health MOB - Monona | WI | 3/6/2012 | 5,039 | 816 | 7,344 | — | 8,160 | 628 | ||||||||||||||||||||
Carson Tahoe MOB West - Carson City | NV | 3/8/2012 | 4,675 | — | 7,111 | — | 7,111 | 823 | ||||||||||||||||||||
Henry Ford Dialysis Center - Southfield | MI | 3/15/2012 | (5) | — | 126 | 2,402 | — | 2,528 | 207 | |||||||||||||||||||
Sisters of Mercy Building - Springfield | MO | 4/10/2012 | 5,500 | 490 | 9,311 | — | 9,801 | 760 | ||||||||||||||||||||
East Pointe Medical Plaza - Lehigh Acres | FL | 4/18/2012 | 5,260 | 473 | 8,980 | — | 9,453 | 698 | ||||||||||||||||||||
DaVita Dialysis - Paoli | IN | 5/4/2012 | (5) | — | 167 | 1,503 | — | 1,670 | 118 | |||||||||||||||||||
Reliant Rehabilitation - Houston | TX | 5/9/2012 | 13,437 | 1,330 | 25,262 | — | 26,592 | 2,386 | ||||||||||||||||||||
PAPP Clinic - Newnan | GA | 5/14/2012 | (5) | — | 955 | 3,821 | 65 | 4,841 | 297 | |||||||||||||||||||
Unitron Hearing Building - Plymouth | MN | 5/15/2012 | 4,000 | 822 | 7,394 | — | 8,216 | 656 | ||||||||||||||||||||
Cooper Health MOB II - Willingboro | NJ | 5/22/2012 | (5) | — | 158 | 3,923 | — | 4,081 | 368 | |||||||||||||||||||
Fresenius Medical - Metairie | LA | 5/23/2012 | (5) | — | 660 | 2,642 | — | 3,302 | 197 | |||||||||||||||||||
Sunnyvale Medical Plaza - Sunnyvale | TX | 5/31/2012 | (5) | — | 951 | 10,290 | — | 11,241 | 1,053 | |||||||||||||||||||
Texas Clinic at Arlington - Arlington | TX | 5/31/2012 | (5) | — | 2,689 | 16,833 | 143 | 19,665 | 1,559 | |||||||||||||||||||
Pinnacle Health - Harrisburg | PA | 6/12/2012 | (5) | — | 485 | 10,797 | — | 11,282 | 1,028 | |||||||||||||||||||
Cancer Care Partners - Mishawaka | IN | 6/15/2012 | (5) | — | 1,188 | 22,578 | — | 23,766 | 1,668 | |||||||||||||||||||
Aurora Health Care - Hartford | WI | 7/26/2012 | 19,120 | 2,295 | 20,659 | — | 22,954 | 1,366 | ||||||||||||||||||||
Aurora Health Care - Neenah | WI | 7/26/2012 | 7,840 | 470 | 8,932 | — | 9,402 | 591 | ||||||||||||||||||||
Aurora Health Care - Two Rivers | WI | 7/26/2012 | 22,640 | 1,359 | 25,816 | — | 27,175 | 1,707 | ||||||||||||||||||||
Baylor Institute for Rehabilitation - Fort Worth | TX | 8/22/2012 | (5) | — | 1,413 | 12,720 | — | 14,133 | 961 | |||||||||||||||||||
Bronson Lakeview - Paw Paw | MI | 9/27/2012 | (5) | — | 1,362 | 25,871 | — | 27,233 | 1,509 |
Initial Costs | Subsequent to Acquisition | |||||||||||||||||||||||||||
Property | State | Acquisition Date | Encumbrances at December 31, 2013 | Land | Building and Improvements | Building and Improvements | Gross Amount at December 31, 2013 (1) (2) | Accumulated Depreciation (3) (4) | ||||||||||||||||||||
Benton Village - Palm Coast | FL | 11/21/2012 | (5) | — | 1,053 | 15,446 | — | 16,499 | 607 | |||||||||||||||||||
Benton House - Douglasville | GA | 11/21/2012 | (5) | — | 1,201 | 13,104 | — | 14,305 | 519 | |||||||||||||||||||
Benton Village - Stockbridge | GA | 11/21/2012 | (5) | — | 1,770 | 14,303 | 20 | 16,093 | 592 | |||||||||||||||||||
Benton House - Sugar Hill | GA | 11/21/2012 | (5) | — | 1,337 | 14,216 | — | 15,553 | 566 | |||||||||||||||||||
Benton House - Newnan | GA | 12/4/2012 | (5) | — | 1,023 | 18,505 | — | 19,528 | 659 | |||||||||||||||||||
Advocate Beverly Center - Chicago | IL | 11/28/2012 | (5) | — | 1,971 | 12,451 | — | 14,422 | 700 | |||||||||||||||||||
Rush Copley POB I - Aurora | IL | 11/29/2012 | (5) | — | — | 23,236 | — | 23,236 | 1,331 | |||||||||||||||||||
CareMeridian Rehabilitation - La Mesa | CA | 12/14/2012 | (5) | — | 1,313 | 3,938 | — | 5,251 | 242 | |||||||||||||||||||
Wellmont Blue Ridge MOB - Bristol | TN | 12/27/2012 | (5) | — | 218 | 4,143 | — | 4,361 | 193 | |||||||||||||||||||
Albany Medical Center MOB - Albany | NY | 12/28/2012 | (5) | — | 3,693 | 9,534 | — | 13,227 | 507 | |||||||||||||||||||
Michiana Oncology - Mishawaka | IN | 12/28/2012 | (5) | — | 1,794 | 17,137 | — | 18,931 | 810 | |||||||||||||||||||
Metro Health - Wyoming | MI | 12/28/2012 | (5) | — | 826 | 4,682 | — | 5,508 | 218 | |||||||||||||||||||
Rush Copley POB II - Aurora | IL | 12/28/2012 | (5) | — | — | 23,553 | — | 23,553 | 1,398 | |||||||||||||||||||
North Valley Orthopedic Surgery Center - Phoenix | AZ | 12/31/2012 | (5) | — | 1,174 | 6,652 | — | 7,826 | 310 | |||||||||||||||||||
Scott & White Healthcare - Kingsland | TX | 2/21/2013 | (5) | — | 196 | 3,733 | — | 3,929 | 145 | |||||||||||||||||||
Salem Medical - Woodstown | NJ | 3/1/2013 | (5) | — | 162 | 3,086 | — | 3,248 | 120 | |||||||||||||||||||
Northside East Cobb Medical Campus - Marietta | GA | 3/22/2013 | (5) | — | 764 | 16,165 | 196 | 17,125 | 863 | |||||||||||||||||||
Rex Wellness Center - Garner | NC | 3/27/2013 | (5) | — | 790 | 7,110 | — | 7,900 | 249 | |||||||||||||||||||
Princeton Village - Clackamas | OR | 3/28/2013 | 3,114 | 766 | 5,813 | — | 6,579 | 148 | ||||||||||||||||||||
Pelican Pointe - Klamath Falls | OR | 3/28/2013 | 12,460 | 357 | 19,179 | — | 19,536 | 461 | ||||||||||||||||||||
Lakeview Terrace - Lake Havasu | AZ | 4/3/2013 | (5) | — | 369 | 7,009 | — | 7,378 | 260 | |||||||||||||||||||
Crystal Lakes Medical Arts - Crystal Lake | IL | 4/30/2013 | (5) | — | 1,577 | 15,349 | — | 16,926 | 555 | |||||||||||||||||||
St. Francis Cancer Center - Midlothian | VA | 5/2/2013 | (5) | — | — | 16,578 | — | 16,578 | 707 | |||||||||||||||||||
Advocate Good Shepard - Crystal Lake | IL | 5/2/2013 | (5) | — | 471 | 6,628 | — | 7,099 | 410 | |||||||||||||||||||
Dakota Ridge Medical Center - Littleton | CO | 5/2/2013 | (5) | — | 553 | 6,332 | — | 6,885 | 418 | |||||||||||||||||||
Pheasant Pointe - Molalla | OR | 5/3/2013 | (5) | — | 621 | 6,627 | — | 7,248 | 145 | |||||||||||||||||||
Cedar Village - Salem | OR | 5/3/2013 | (5) | — | 617 | 10,148 | — | 10,765 | 210 | |||||||||||||||||||
Ocean Ridge - Coos Bay | OR | 5/3/2013 | (5) | — | 1,621 | 11,127 | 6 | 12,754 | 288 | |||||||||||||||||||
Spectrum Health MOB - Wyoming | MI | 5/15/2013 | (5) | — | 1,504 | 13,538 | — | 15,042 | 421 | |||||||||||||||||||
Memorial Hermann MOB - Houston | TX | 6/4/2013 | (5) | — | 602 | 11,430 | — | 12,032 | 311 | |||||||||||||||||||
UC Davis MOB - Folsom | CA | 6/17/2013 | (5) | — | 707 | 7,553 | 29 | 8,289 | 207 | |||||||||||||||||||
Wyndcrest - Rochester | IL | 7/1/2013 | (5) | — | 276 | 4,587 | — | 4,863 | 76 | |||||||||||||||||||
Fayette MOB - Fayetteville | GA | 7/16/2013 | 6,986 | — | 15,326 | — | 15,326 | 364 | ||||||||||||||||||||
Garden House - Anderson | SC | 7/26/2013 | 8,149 | 520 | 12,187 | — | 12,707 | 170 | ||||||||||||||||||||
Arbor Terrace - Athens | GA | 7/31/2013 | (5) | — | 1,265 | 15,877 | 33 | 17,175 | 196 | |||||||||||||||||||
Arbor Terrace of Cascade - Atlanta | GA | 7/31/2013 | (5) | — | 1,762 | 6,890 | 13 | 8,665 | 120 | |||||||||||||||||||
Arbor Terrace - Decatur (Land) | GA | 7/31/2013 | — | 1,788 | — | — | 1,788 | — | ||||||||||||||||||||
Arbor Terrace - Largo | FL | 7/30/2013 | (5) | — | 1,052 | 6,691 | 2 | 7,745 | 102 |
Initial Costs | Subsequent to Acquisition | |||||||||||||||||||||||||||
Property | State | Acquisition Date | Encumbrances at December 31, 2013 | Land | Building and Improvements | Building and Improvements | Gross Amount at December 31, 2013 (1) (2) | Accumulated Depreciation (3) (4) | ||||||||||||||||||||
Arbor - Terrace of Knoxville | TN | 7/31/2013 | (5) | — | 364 | 16,292 | — | 16,656 | 213 | |||||||||||||||||||
Barrington Terrace - Fort Myers | FL | 7/31/2013 | (5) | — | 1,522 | 14,359 | — | 15,881 | 239 | |||||||||||||||||||
Barrington Terrace - Naples | FL | 7/31/2013 | (5) | — | 1,684 | 20,181 | 24 | 21,889 | 305 | |||||||||||||||||||
Clearwater Springs - Vancouver | WA | 8/1/2013 | (5) | — | 740 | 9,799 | — | 10,539 | 141 | |||||||||||||||||||
Redwood Heights - Salem | OR | 8/1/2013 | (5) | — | 1,070 | 10,077 | — | 11,147 | 145 | |||||||||||||||||||
Ocean Crest - Coos Bay | OR | 8/1/2013 | (5) | — | 235 | 3,453 | — | 3,688 | 56 | |||||||||||||||||||
Benton House - Covington | GA | 8/2/2013 | 8,121 | 1,025 | 12,115 | — | 13,140 | 173 | ||||||||||||||||||||
Via Christi Clinic - Wichita | KS | 8/20/2013 | — | 705 | 6,341 | — | 7,046 | 99 | ||||||||||||||||||||
United Healthcare - Cypress | CA | 9/24/2013 | — | 310 | 47,879 | — | 48,189 | 578 | ||||||||||||||||||||
United Healthcare - Indianapolis | IN | 9/24/2013 | — | 4,160 | 28,037 | — | 32,197 | 338 | ||||||||||||||||||||
United Healthcare - Onlaska | WI | 9/24/2013 | — | 700 | 7,268 | — | 7,968 | 88 | ||||||||||||||||||||
United Healthcare - Wawatosa | WI | 9/24/2013 | — | 4,270 | 15,274 | — | 19,544 | 184 | ||||||||||||||||||||
Athens Medical Complex - Athens | GA | 9/27/2013 | — | 1,476 | 14,402 | — | 15,878 | 214 | ||||||||||||||||||||
Restora Hospital - Sun City | AZ | 9/27/2013 | — | 860 | 16,352 | — | 17,212 | 232 | ||||||||||||||||||||
Restora Hospital - Mesa | AZ | 9/27/2013 | — | 861 | 16,345 | — | 17,206 | 232 | ||||||||||||||||||||
West Valley Medical Center - Buckeye | AZ | 9/27/2013 | — | 1,535 | 6,140 | — | 7,675 | 72 | ||||||||||||||||||||
Lutheran Medical Arts - Ft. Wayne | IN | 9/27/2013 | — | — | 11,165 | — | 11,165 | 162 | ||||||||||||||||||||
DuPont Road MOB - Ft. Wayne | IN | 9/27/2013 | — | — | 8,124 | 46 | 8,170 | 121 | ||||||||||||||||||||
Crozer-Keystone I - Springfield | PA | 9/27/2013 | — | 2,423 | 46,043 | — | 48,466 | 537 | ||||||||||||||||||||
Crozer-Keystone II - Springfield | PA | 9/27/2013 | — | 1,696 | 9,610 | — | 11,306 | 112 | ||||||||||||||||||||
Aventura Medical Plaza - Aventura | FL | 9/27/2013 | — | 667 | 13,875 | — | 14,542 | 273 | ||||||||||||||||||||
Spartanburg Regional MOB - Spartanburg | SC | 9/27/2013 | — | — | 17,824 | — | 17,824 | 231 | ||||||||||||||||||||
Virginia Urology Center - Richmond | VA | 9/27/2013 | — | 1,757 | 15,813 | — | 17,570 | 184 | ||||||||||||||||||||
St. Peter's Recovery Center - Guilderland | NY | 9/27/2013 | — | 404 | 7,682 | — | 8,086 | 97 | ||||||||||||||||||||
Capital Regional MOB - Tallahassee | FL | 9/30/2013 | — | — | 8,210 | — | 8,210 | 172 | ||||||||||||||||||||
Arbor Terrace - Asheville | NC | 10/4/2013 | 9,497 | 832 | 16,080 | 11 | 16,923 | 121 | ||||||||||||||||||||
Arbor Terrace - Decatur | GA | 10/4/2013 | 10,970 | 872 | 20,491 | — | 21,363 | 144 | ||||||||||||||||||||
Gardens at Westlake - Westlake | OH | 10/31/2013 | — | 1,591 | 19,390 | — | 20,981 | 99 | ||||||||||||||||||||
Baylor Orthopedic & Spine - Arlington | TX | 11/5/2013 | — | — | 23,914 | — | 23,914 | 237 | ||||||||||||||||||||
Trinity Health Medical Arts - Minot | ND | 11/6/2013 | — | 572 | 10,867 | — | 11,439 | 85 | ||||||||||||||||||||
TriSun Care Center - San Antonio | TX | 11/21/2013 | — | 1,044 | 9,392 | — | 10,436 | 44 | ||||||||||||||||||||
Allina Health - Elk River | MN | 11/25/2013 | — | 544 | 5,991 | — | 6,535 | 19 | ||||||||||||||||||||
Riverdale MOB - Riverdale | GA | 12/6/2013 | — | 438 | 8,721 | — | 9,159 | 36 | ||||||||||||||||||||
Wellington ALF - Minot | ND | 12/16/2013 | — | 1,480 | 8,388 | — | 9,868 | — | ||||||||||||||||||||
Spartanburg ASC - Spartanburg | SC | 12/24/2013 | — | 600 | 11,398 | — | 11,998 | — | ||||||||||||||||||||
Solana at Cinco Ranch - Katy | TX | 12/30/2013 | — | 2,786 | 65,340 | — | 68,126 | — | ||||||||||||||||||||
Aurora Healthcare - Kenosha | WI | 7/1/2013 | — | 1,747 | — | — | 1,747 | — |
Initial Costs | Subsequent to Acquisition | |||||||||||||||||||||||||||
Property | State | Acquisition Date | Encumbrances at December 31, 2013 | Land | Building and Improvements | Building and Improvements | Gross Amount at December 31, 2013 (1) (2) | Accumulated Depreciation (3) (4) | ||||||||||||||||||||
$ | 259,348 | $ | 107,719 | $ | 1,363,763 | $ | 707 | $ | 1,471,577 | $ | 57,347 |
(1) | Acquired intangible lease assets allocated to individual properties in the amount of $181.3 million are not reflected in the table above. |
(2) | The tax basis of aggregate land, buildings and improvements as of December 31, 2013 is $1.6 billion. |
(3) | The accumulated depreciation column excludes $30.0 million of amortization associated with acquired intangible lease assets. |
(4) | Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements and five years for fixtures. |
(5) | These properties collateralize the credit facility which had no advances outstanding as of December 31, 2013. |
(6) | Gross amount is net of tenant improvement write-offs $0.6 million due to early tenant lease terminations. |
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Real estate investments, at cost: | ||||||||||||
Balance at beginning of year | $ | 600,494 | $ | 140,810 | $ | — | ||||||
Additions - Acquisitions | 871,612 | 459,765 | 140,810 | |||||||||
Disposals | (529 | ) | (81 | ) | — | |||||||
Balance at end of the year | $ | 1,471,577 | $ | 600,494 | $ | 140,810 | ||||||
Accumulated depreciation and amortization: | ||||||||||||
Balance at beginning of year | $ | 16,178 | $ | 1,174 | $ | — | ||||||
Depreciation expense | 41,232 | 15,010 | 1,174 | |||||||||
Disposals | (63 | ) | (6 | ) | — | |||||||
Balance at end of the year | $ | 57,347 | $ | 16,178 | $ | 1,174 |
• | The historical consolidated financial information of Ventas as of and for the six months ended June 30, 2014, derived from Ventas’s unaudited consolidated financial statements, and the historical consolidated statement of income information of Ventas for the year ended December 31, 2013, derived from Ventas’s audited consolidated financial statements; |
• | Pro forma adjustments to give effect to Ventas’s August 2014 acquisition of 29 independent living seniors housing communities located in Canada on Ventas’s consolidated balance sheet as of June 30, 2014, as if the acquisition closed on June 30, 2014; |
• | Pro forma adjustments to give effect to Ventas’s 2014 and 2013 acquisitions and other investments, dispositions and significant debt activity (including the August 2014 acquisition of 29 independent living seniors housing communities located in Canada and the April 2014 issuance and sale of $700 million aggregate principal amount of senior notes) on Ventas’s consolidated statements of income for the six months ended June 30, 2014 and for the year ended December 31, 2013, as if these transactions occurred on January 1, 2013; |
• | The historical consolidated financial information of HCT as of and for the six months ended June 30, 2014, derived from HCT’s unaudited consolidated financial statements, and the historical consolidated statement of income information of HCT for the year ended December 31, 2013, derived from HCT’s audited consolidated financial statements; |
• | Pro forma adjustments to give effect to HCT’s 2014 and 2013 acquisitions and other investments, dispositions and significant debt activity on HCT’s consolidated statements of income for the six months ended June 30, 2014 and for the year ended December 31, 2013, as if these transactions occurred on January 1, 2013; |
• | Pro forma adjustments to give effect to Ventas’s acquisition of HCT on Ventas’s consolidated balance sheet as of June 30, 2014, as if the acquisition closed on June 30, 2014; and |
• | Pro forma adjustments to give effect to Ventas’s acquisition of HCT on Ventas’s consolidated statements of income for the six months ended June 30, 2014 and for the year ended December 31, 2013, as if the acquisition closed on January 1, 2013. |
• | Ventas’s unaudited consolidated financial statements and the related notes thereto as of and for the six months ended June 30, 2014 included in the Company’s Quarterly Report on Form 10-Q for the quarter then ended, filed with the Securities and Exchange Commission (“SEC”) on August 11, 2014; |
• | Ventas’s audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K for the year then ended, filed with the SEC on February 18, 2014, as amended by Amendment No. 1 to the Company’s Annual Report on Form 10-K/A, filed with the SEC on September 4, 2014; |
• | HCT’s unaudited consolidated financial statements and the related notes thereto as of and for the six months ended June 30, 2014 included in HCT’s Quarterly Report on Form 10-Q for the quarter then ended, filed with the SEC on August 12, 2014; and |
• | HCT’s audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2013 included in HCT’s Annual Report on Form 10-K for the year then ended, filed with the SEC on February 26, 2014. |
Ventas Historical | Ventas 2014 Transactions Adjustments (A) | Pro Forma for Ventas 2014 Transactions | HCT Historical (B) | HCT Acquisition Adjustments (C) | Total Pro Forma | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Net real estate investments | $ | 18,389,744 | $ | 1,004,635 | $ | 19,394,379 | $ | 1,972,317 | $ | 738,501 | (D) | $ | 22,105,197 | ||||||||||||
Cash and cash equivalents | 86,635 | 43,669 | 130,304 | 28,695 | — | 158,999 | |||||||||||||||||||
Escrow deposits and restricted cash | 75,514 | — | 75,514 | 2,135 | — | 77,649 | |||||||||||||||||||
Deferred financing costs, net | 63,399 | 4,701 | 68,100 | 19,287 | (19,287 | ) | (E) | 68,100 | |||||||||||||||||
Other assets | 1,175,494 | (36,287 | ) | 1,139,207 | 55,091 | 82,300 | (F) | 1,276,598 | |||||||||||||||||
Total assets | $ | 19,790,786 | $ | 1,016,718 | $ | 20,807,504 | $ | 2,077,525 | $ | 801,514 | $ | 23,686,543 | |||||||||||||
Liabilities and equity | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Senior notes payable and other debt | $ | 9,602,439 | $ | 923,641 | $ | 10,526,080 | $ | 815,707 | $ | 198,783 | (G) | $ | 11,540,570 | ||||||||||||
Accrued interest | 56,722 | — | 56,722 | 1,540 | — | 58,262 | |||||||||||||||||||
Accounts payable and other liabilities | 975,282 | 11,644 | 986,926 | 95,634 | (37,676 | ) | (H) | 1,044,884 | |||||||||||||||||
Deferred income taxes | 256,392 | 107,026 | 363,418 | — | — | 363,418 | |||||||||||||||||||
Total liabilities | 10,890,835 | 1,042,311 | 11,933,146 | 912,881 | 161,107 | 13,007,134 | |||||||||||||||||||
Redeemable OP unitholder and noncontrolling interests | 169,292 | — | 169,292 | — | 79,959 | (I) | 249,251 | ||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||
Total Ventas stockholders' equity | 8,655,110 | (25,593 | ) | 8,629,517 | 1,150,157 | 574,935 | (J) | 10,354,609 | |||||||||||||||||
Noncontrolling interest | 75,549 | — | 75,549 | 14,487 | (14,487 | ) | (K) | 75,549 | |||||||||||||||||
Total equity | 8,730,659 | (25,593 | ) | 8,705,066 | 1,164,644 | 560,448 | 10,430,158 | ||||||||||||||||||
Total liabilities and equity | $ | 19,790,786 | $ | 1,016,718 | $ | 20,807,504 | $ | 2,077,525 | $ | 801,514 | $ | 23,686,543 |
Ventas Historical | Ventas 2014 Transactions Adjustments (L) | Pro Forma for Ventas 2014 Transactions | HCT Historical (B) | HCT 2014 Transactions Adjustments (L) | Pro Forma for HCT 2014 Transactions | HCT Acquisition Adjustments (C) | Total Pro Forma | ||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
Rental income: | |||||||||||||||||||||||||||||||||
Triple-net leased | $ | 480,572 | $ | 4,136 | $ | 484,708 | $ | 13,218 | $ | 4,823 | $ | 18,041 | $ | 131 | (M) | $ | 502,880 | ||||||||||||||||
Medical office buildings | 230,113 | (209 | ) | 229,904 | 48,939 | 964 | 49,903 | (162 | ) | (M) | 279,645 | ||||||||||||||||||||||
710,685 | 3,927 | 714,612 | 62,157 | 5,787 | 67,944 | (31 | ) | 782,525 | |||||||||||||||||||||||||
Resident fees and services | 745,534 | 58,218 | 803,752 | 58,214 | 11,321 | 69,535 | — | 873,287 | |||||||||||||||||||||||||
Medical office building and other services revenue | 10,667 | — | 10,667 | — | — | — | — | 10,667 | |||||||||||||||||||||||||
Income from loans and investments | 25,392 | 2,059 | 27,451 | 1,130 | — | 1,130 | (12 | ) | (N) | 28,569 | |||||||||||||||||||||||
Interest and other income | 446 | — | 446 | — | — | — | — | 446 | |||||||||||||||||||||||||
Total revenues | 1,492,724 | 64,204 | 1,556,928 | 121,501 | 17,108 | 138,609 | (43 | ) | 1,695,494 | ||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Interest | 179,342 | 13,760 | 193,102 | 12,651 | 359 | 13,010 | (1,788 | ) | (O) | 204,324 | |||||||||||||||||||||||
Depreciation and amortization | 384,412 | 29,424 | 413,836 | 60,656 | 7,303 | 67,959 | (18,520 | ) | (P) | 463,275 | |||||||||||||||||||||||
Property-level operating expenses: | |||||||||||||||||||||||||||||||||
Senior living | 497,719 | 28,628 | 526,347 | 41,532 | 7,650 | 49,182 | — | 575,529 | |||||||||||||||||||||||||
Medical office buildings | 78,680 | (39 | ) | 78,641 | 10,150 | 290 | 10,440 | — | 89,081 | ||||||||||||||||||||||||
576,399 | 28,589 | 604,988 | 51,682 | 7,940 | 59,622 | — | 664,610 | ||||||||||||||||||||||||||
Medical office building services costs | 4,997 | — | 4,997 | — | — | — | — | 4,997 | |||||||||||||||||||||||||
General, administrative and professional fees | 64,172 | — | 64,172 | 4,057 | — | 4,057 | — | 68,229 | |||||||||||||||||||||||||
Loss (gain) on extinguishment of debt, net | 2,665 | (243 | ) | 2,422 | — | — | — | — | 2,422 | ||||||||||||||||||||||||
Merger-related expenses and deal costs | 20,359 | (8,398 | ) | 11,961 | 25,878 | (6,428 | ) | 19,450 | — | 31,411 | |||||||||||||||||||||||
Other | 10,092 | — | 10,092 | 71,067 | — | 71,067 | (71,067 | ) | (Q) | 10,092 | |||||||||||||||||||||||
Total expenses | 1,242,438 | 63,132 | 1,305,570 | 225,991 | 9,174 | 235,165 | (91,375 | ) | 1,449,360 | ||||||||||||||||||||||||
Income (loss) before income from unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interest | 250,286 | 1,072 | 251,358 | (104,490 | ) | 7,934 | (96,556 | ) | 91,332 | 246,134 | |||||||||||||||||||||||
Income from unconsolidated entities | 596 | 36 | 632 | — | — | — | — | 632 | |||||||||||||||||||||||||
Income tax expense | (6,707 | ) | — | (6,707 | ) | (642 | ) | — | (642 | ) | — | (7,349 | ) | ||||||||||||||||||||
Income from continuing operations | 244,175 | 1,108 | 245,283 | (105,132 | ) | 7,934 | (97,198 | ) | 91,332 | 239,417 | |||||||||||||||||||||||
Gain (loss) on real estate dispositions, net | 12,889 | (14,771 | ) | (1,882 | ) | — | — | — | — | (1,882 | ) | ||||||||||||||||||||||
Income (loss) from continuing operations, including real estate dispositions | 257,064 | (13,663 | ) | 243,401 | (105,132 | ) | 7,934 | (97,198 | ) | 91,332 | 237,535 | ||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 395 | — | 395 | (808 | ) | — | (808 | ) | 808 | (R) | 395 | ||||||||||||||||||||||
Income (loss) from continuing operations attributable to common stockholders, including real estate dispositions | $ | 256,669 | $ | (13,663 | ) | $ | 243,006 | $ | (104,324 | ) | $ | 7,934 | $ | (96,390 | ) | $ | 90,524 | $ | 237,140 | ||||||||||||||
Income (loss) from continuing operations attributable to common stockholders per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.87 | $ | — | $ | 0.83 | $ | (0.58 | ) | $ | — | $ | (0.54 | ) | N/A | $ | 0.74 | ||||||||||||||||
Diluted | $ | 0.87 | $ | — | $ | 0.82 | $ | (0.58 | ) | $ | — | $ | (0.54 | ) | N/A | $ | 0.73 | ||||||||||||||||
Weighted average shares used in computing earnings per common share: | |||||||||||||||||||||||||||||||||
Basic | 293,932 | — | 293,932 | 178,357 | — | 178,357 | 25,723 | (S) | 319,655 | ||||||||||||||||||||||||
Diluted | 296,369 | — | 296,369 | 178,357 | — | 178,357 | 26,914 | (S) | 323,283 |
Ventas Historical | Ventas 2014 and 2013 Transactions Adjustments (L) | Pro Forma for Ventas 2014 and 2013 Transactions | HCT Historical (B) | HCT 2014 and 2013 Transactions Adjustments (L) | Pro Forma for HCT 2014 and 2013 Transactions | HCT Acquisition Adjustments (C) | Total Pro Forma | ||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
Rental income: | |||||||||||||||||||||||||||||||||
Triple-net leased | $ | 875,877 | $ | 63,404 | $ | 939,281 | $ | 12,880 | $ | 15,600 | $ | 28,480 | $ | 261 | (M) | $ | 968,022 | ||||||||||||||||
Medical office buildings | 450,107 | 5,208 | 455,315 | 64,075 | 31,314 | 95,389 | (258 | ) | (M) | 550,446 | |||||||||||||||||||||||
1,325,984 | 68,612 | 1,394,596 | 76,955 | 46,914 | 123,869 | 3 | 1,518,468 | ||||||||||||||||||||||||||
Resident fees and services | 1,406,005 | 180,806 | 1,586,811 | 47,698 | 67,768 | 115,466 | — | 1,702,277 | |||||||||||||||||||||||||
Medical office building and other services revenue | 17,809 | 596 | 18,405 | — | — | — | — | 18,405 | |||||||||||||||||||||||||
Income from loans and investments | 58,208 | (2,573 | ) | 55,635 | 569 | — | 569 | (13 | ) | (N) | 56,191 | ||||||||||||||||||||||
Interest and other income | 2,047 | 1 | 2,048 | 89 | — | 89 | — | 2,137 | |||||||||||||||||||||||||
Total revenues | 2,810,053 | 247,442 | 3,057,495 | 125,311 | 114,682 | 239,993 | (10 | ) | 3,297,478 | ||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||
Interest | 334,484 | 65,650 | 400,134 | 15,843 | 2,884 | 18,727 | 1,459 | (O) | 420,320 | ||||||||||||||||||||||||
Depreciation and amortization | 721,959 | 108,216 | 830,175 | 67,456 | 60,583 | 128,039 | 4,960 | (P) | 963,174 | ||||||||||||||||||||||||
Property-level operating expenses: | |||||||||||||||||||||||||||||||||
Senior living | 956,684 | 94,666 | 1,051,350 | 33,151 | 42,137 | 75,288 | — | 1,126,638 | |||||||||||||||||||||||||
Medical office buildings | 152,948 | 3,069 | 156,017 | 12,814 | 5,013 | 17,827 | — | 173,844 | |||||||||||||||||||||||||
1,109,632 | 97,735 | 1,207,367 | 45,965 | 47,150 | 93,115 | — | 1,300,482 | ||||||||||||||||||||||||||
Medical office building services costs | 8,315 | — | 8,315 | — | — | — | — | 8,315 | |||||||||||||||||||||||||
General, administrative and professional fees | 115,106 | (5 | ) | 115,101 | 4,089 | — | 4,089 | — | 119,190 | ||||||||||||||||||||||||
Loss on extinguishment of debt, net | 1,201 | 243 | 1,444 | — | — | — | — | 1,444 | |||||||||||||||||||||||||
Merger-related expenses and deal costs | 21,634 | (7,276 | ) | 14,358 | 13,606 | (15,239 | ) | (1,633 | ) | — | 12,725 | ||||||||||||||||||||||
Other | 18,732 | — | 18,732 | — | — | — | — | 18,732 | |||||||||||||||||||||||||
Total expenses | 2,331,063 | 264,563 | 2,595,626 | 146,959 | 95,378 | 242,337 | 6,419 | 2,844,382 | |||||||||||||||||||||||||
Income (loss) before (loss) income from unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interest | 478,990 | (17,121 | ) | 461,869 | (21,648 | ) | 19,304 | (2,344 | ) | (6,429 | ) | 453,096 | |||||||||||||||||||||
(Loss) income from unconsolidated entities | (508 | ) | 493 | (15 | ) | — | — | — | — | (15 | ) | ||||||||||||||||||||||
Income tax benefit (expense) | 11,828 | — | 11,828 | (524 | ) | — | (524 | ) | — | 11,304 | |||||||||||||||||||||||
Income (loss) from continuing operations | 490,310 | (16,628 | ) | 473,682 | (22,172 | ) | 19,304 | (2,868 | ) | (6,429 | ) | 464,385 | |||||||||||||||||||||
Gain on real estate dispositions, net | — | 14,771 | 14,771 | — | — | — | 14,771 | ||||||||||||||||||||||||||
Income (loss) from continuing operations, including real estate dispositions | 490,310 | (1,857 | ) | 488,453 | (22,172 | ) | 19,304 | (2,868 | ) | (6,429 | ) | 479,156 | |||||||||||||||||||||
Net income attributable to noncontrolling interest | 1,380 | 143 | 1,523 | 58 | — | 58 | (58 | ) | (R) | 1,523 | |||||||||||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | $ | 488,930 | $ | (2,000 | ) | $ | 486,930 | $ | (22,230 | ) | $ | 19,304 | $ | (2,926 | ) | $ | (6,371 | ) | $ | 477,633 | |||||||||||||
Income (loss) from continuing operations attributable to common stockholders per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 1.67 | $ | — | $ | 1.66 | $ | (0.15 | ) | $ | — | $ | (0.02 | ) | N/A | $ | 1.50 | ||||||||||||||||
Diluted | $ | 1.66 | $ | — | $ | 1.65 | $ | (0.15 | ) | $ | — | $ | (0.02 | ) | N/A | $ | 1.48 | ||||||||||||||||
Weighted average shares used in computing earnings per common share: | |||||||||||||||||||||||||||||||||
Basic | 292,654 | — | 292,654 | 151,684 | — | 151,684 | 25,723 | (S) | 318,377 | ||||||||||||||||||||||||
Diluted | 295,110 | — | 295,110 | 151,684 | — | 151,684 | 26,914 | (S) | 322,024 |
Equity to be issued (26.9 million shares at $67.13 per share) | $ | 1,806 | |
Cash to be paid (assumed to be funded with borrowings under Ventas’s unsecured revolving credit facility) | 192 | ||
Assumption or repayment of net debt | 930 | ||
Estimated purchase price | $ | 2,928 | |
Land and improvements | $ | 266 | ||
Buildings and improvements | 2,219 | |||
Acquired lease intangibles | 225 | |||
Estimated fair value of net real estate investments | $ | 2,710 | ||
Write-off of HCT’s historical fair value of debt adjustments | $ | (4 | ) | |
Fair value of debt adjustment recorded in connection with the acquisition | 11 | |||
HCT debt anticipated to be repaid at closing | (508 | ) | ||
Anticipated borrowings under Ventas’s unsecured revolving credit facility | 708 | |||
Pro forma adjustment to debt | $ | 207 | ||
For the Six Months Ended June 30, 2014 | For the Year Ended December 31, 2013 | |||||||
Write-off of HCT’s historical fair value of debt adjustments | $ | 1 | $ | 1 | ||||
Fair value of debt adjustment recorded in connection with the acquisition | (2 | ) | (4 | ) | ||||
HCT debt anticipated to be repaid at closing | (3 | ) | (1 | ) | ||||
Anticipated borrowings under Ventas’s unsecured revolving credit facility | 5 | 10 | ||||||
Write-off of HCT’s deferred financing costs | (3 | ) | (4 | ) | ||||
Pro forma adjustment to interest expense | $ | (2 | ) | $ | 2 |
Ventas Historical | Ventas 2014 Transactions Adjustments | Pro Forma for Ventas 2014 Transactions | HCT Historical | HCT 2014 Transactions Adjustments | Pro Forma for HCT 2014 Transactions | HCT Acquisition Adjustments | Total Pro Forma | ||||||||||||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | $ | 256,669 | $ | (13,663 | ) | $ | 243,006 | $ | (104,324 | ) | $ | 7,934 | $ | (96,390 | ) | $ | 90,524 | $ | 237,140 | ||||||||||||
Discontinued operations | 2,776 | (854 | ) | 1,922 | — | — | — | — | 1,922 | ||||||||||||||||||||||
Net income (loss) attributable to common stockholders | 259,445 | (14,517 | ) | 244,928 | (104,324 | ) | 7,934 | (96,390 | ) | 90,524 | 239,062 | ||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 381,262 | 29,424 | 410,686 | 60,523 | 7,303 | 67,826 | (18,520 | ) | 459,992 | ||||||||||||||||||||||
Real estate depreciation related to noncontrolling interest | (5,305 | ) | — | (5,305 | ) | — | — | — | — | (5,305 | ) | ||||||||||||||||||||
Real estate depreciation related to unconsolidated entities | 2,989 | — | 2,989 | — | — | — | — | 2,989 | |||||||||||||||||||||||
(Gain) loss on real estate dispositions, net | (12,889 | ) | 14,771 | 1,882 | — | — | — | — | 1,882 | ||||||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||||||||||
Gain on real estate dispositions, net | (1,483 | ) | 1,058 | (425 | ) | — | — | — | — | (425 | ) | ||||||||||||||||||||
Depreciation on real estate assets | 1,528 | (159 | ) | 1,369 | — | — | — | — | 1,369 | ||||||||||||||||||||||
FFO | 625,547 | 30,577 | 656,124 | (43,801 | ) | 15,237 | (28,564 | ) | 72,004 | 699,564 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Change in fair value of financial instruments | 41 | — | 41 | — | — | — | — | 41 | |||||||||||||||||||||||
Income tax expense | 6,407 | — | 6,407 | — | — | — | — | 6,407 | |||||||||||||||||||||||
Loss on extinguishment of debt, net | 2,114 | (243 | ) | 1,871 | — | — | — | — | 1,871 | ||||||||||||||||||||||
Merger-related expenses and deal costs | 20,363 | (8,398 | ) | 11,965 | 25,878 | (6,428 | ) | 19,450 | — | 31,415 | |||||||||||||||||||||
Amortization of other intangibles | 511 | — | 511 | — | — | — | — | 511 | |||||||||||||||||||||||
Normalized FFO | $ | 654,983 | $ | 21,936 | $ | 676,919 | $ | (17,923 | ) | $ | 8,809 | $ | (9,114 | ) | $ | 72,004 | $ | 739,809 |
Ventas Historical | Total Pro Forma | ||||||
Income from continuing operations attributable to common stockholders | $ | 0.87 | $ | 0.73 | |||
Discontinued operations | 0.01 | 0.01 | |||||
Net income attributable to common stockholders | 0.88 | 0.74 | |||||
Adjustments: | |||||||
Real estate depreciation and amortization | 1.29 | 1.42 | |||||
Real estate depreciation related to noncontrolling interest | (0.02 | ) | (0.02 | ) | |||
Real estate depreciation related to unconsolidated entities | 0.01 | 0.01 | |||||
(Gain) loss on real estate dispositions, net | (0.04 | ) | 0.01 | ||||
Discontinued operations: | |||||||
Gain on real estate dispositions, net | (0.01 | ) | (0.00 | ) | |||
Depreciation on real estate assets | 0.01 | 0.00 | |||||
FFO | 2.11 | 2.16 | |||||
Adjustments: | |||||||
Change in fair value of financial instruments | 0.00 | 0.00 | |||||
Income tax expense | 0.02 | 0.02 | |||||
Loss on extinguishment of debt, net | 0.01 | 0.01 | |||||
Merger-related expenses and deal costs | 0.07 | 0.10 | |||||
Amortization of other intangibles | 0.00 | 0.00 | |||||
Normalized FFO | $ | 2.21 | $ | 2.29 | |||
Dilutive shares outstanding used in computing FFO and normalized FFO per common share | 296,369 | 323,283 |
Ventas Historical | Ventas 2014 and 2013 Transactions Adjustments | Pro Forma for Ventas 2014 and 2013 Transactions | HCT Historical | HCT 2014 and 2013 Transactions Adjustments | Pro Forma for HCT 2014 and 2013 Transactions | HCT Acquisition Adjustments | Total Pro Forma | ||||||||||||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | $ | 488,930 | $ | (2,000 | ) | $ | 486,930 | $ | (22,230 | ) | $ | 19,304 | $ | (2,926 | ) | $ | (6,371 | ) | $ | 477,633 | |||||||||||
Discontinued operations | (35,421 | ) | 2,154 | (33,267 | ) | — | — | — | — | (33,267 | ) | ||||||||||||||||||||
Net income (loss) attributable to common stockholders | 453,509 | 154 | 453,663 | (22,230 | ) | 19,304 | (2,926 | ) | (6,371 | ) | 444,366 | ||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 716,412 | 108,216 | 824,628 | 66,975 | 60,583 | 127,558 | 4,960 | 957,146 | |||||||||||||||||||||||
Real estate depreciation related to noncontrolling interest | (10,512 | ) | — | (10,512 | ) | — | — | — | — | (10,512 | ) | ||||||||||||||||||||
Real estate depreciation related to unconsolidated entities | 6,543 | — | 6,543 | — | — | — | — | 6,543 | |||||||||||||||||||||||
Gain on re-measurement of equity interest upon acquisition, net | (1,241 | ) | — | (1,241 | ) | — | — | — | — | (1,241 | ) | ||||||||||||||||||||
Gain on real estate dispositions, net | — | (14,771 | ) | (14,771 | ) | — | — | — | — | (14,771 | ) | ||||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||||||||||
Gain on real estate dispositions, net | (4,059 | ) | 1,262 | (2,797 | ) | — | — | — | — | (2,797 | ) | ||||||||||||||||||||
Depreciation on real estate assets | 47,806 | (2,892 | ) | 44,914 | — | — | — | — | 44,914 | ||||||||||||||||||||||
FFO | 1,208,458 | 91,969 | 1,300,427 | 44,745 | 79,887 | 124,632 | (1,411 | ) | 1,423,648 | ||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Change in fair value of financial instruments | 449 | — | 449 | — | — | — | — | 449 | |||||||||||||||||||||||
Income tax benefit | (11,828 | ) | — | (11,828 | ) | — | — | — | — | (11,828 | ) | ||||||||||||||||||||
Loss on extinguishment of debt, net | 1,048 | 243 | 1,291 | — | — | — | — | 1,291 | |||||||||||||||||||||||
Merger-related expenses and deal costs | 21,560 | (7,276 | ) | 14,284 | 13,606 | (15,239 | ) | (1,633 | ) | — | 12,651 | ||||||||||||||||||||
Amortization of other intangibles | 1,022 | — | 1,022 | — | — | — | — | 1,022 | |||||||||||||||||||||||
Normalized FFO | $ | 1,220,709 | $ | 84,936 | $ | 1,305,645 | $ | 58,351 | $ | 64,648 | $ | 122,999 | $ | (1,411 | ) | $ | 1,427,233 |
Ventas Historical | Total Pro Forma | ||||||
Income from continuing operations attributable to common stockholders | $ | 1.66 | $ | 1.48 | |||
Discontinued operations | (0.12 | ) | (0.10 | ) | |||
Net income attributable to common stockholders | 1.54 | 1.38 | |||||
Adjustments: | |||||||
Real estate depreciation and amortization | 2.43 | 2.97 | |||||
Real estate depreciation related to noncontrolling interest | (0.04 | ) | (0.03 | ) | |||
Real estate depreciation related to unconsolidated entities | 0.02 | 0.02 | |||||
Gain on re-measurement of equity interest upon acquisition, net | (0.00 | ) | (0.00 | ) | |||
Gain on real estate dispositions, net | — | (0.05 | ) | ||||
Discontinued operations: | |||||||
Gain on real estate dispositions, net | (0.01 | ) | (0.01 | ) | |||
Depreciation on real estate assets | 0.16 | 0.14 | |||||
FFO | 4.09 | 4.42 | |||||
Adjustments: | |||||||
Change in fair value of financial instruments | 0.00 | 0.00 | |||||
Income tax benefit | (0.04 | ) | (0.04 | ) | |||
Loss on extinguishment of debt, net | 0.00 | 0.00 | |||||
Merger-related expenses and deal costs | 0.07 | 0.04 | |||||
Amortization of other intangibles | 0.00 | 0.00 | |||||
Normalized FFO | $ | 4.14 | $ | 4.43 | |||
Dilutive shares outstanding used in computing FFO and normalized FFO per common share | 295,110 | 322,024 |