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Real Estate Investments (Tables)
 12 Months Ended
Dec. 31, 2013
Real Estate Investments  
Summary of investments in owned properties

The following table summarizes our investment in owned properties at December 31, 2013(dollar amounts in thousands):

 
    
    
    
   Number of    
  
 
    
    
    
   Average
Investment
per
Bed/Unit		  
Type of Property
  Gross
Investments		   Percentage
of
Investments		   Number
of
Properties(1)		   SNF
Beds		   ALF
Units		  

Skilled Nursing

   $ 458,759     48.9 %   68     8,264     —   $ 55.51  

Assisted Living

     399,912     42.7 %   98     —     4,641   $ 86.17  

Range of Care

     43,907     4.7 %   8     634     274   $ 48.36  

Under Development(2)

     21,432     2.3 %   —     —     —     —  

Other(3)

     13,607     1.4 %   2     —     —     —  
                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Totals

   $ 937,617     100.0 %   176     8,898     4,915        
                             
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                             
(1)
We have investments in 27 states leased to 33 different operators.
(2)
Includes three MC developments with a total of 168 units, a combination ALF and MC development with a total of 81 units, and a SNF development with 143 beds.
(3)
Includes two schools properties and four parcels of land held-for-use.
Summary of acquisitions

  The following table summarizes our acquisitions during 2013 (dollar amounts in thousands):

Type of Property
  Purchase
Price		   Transaction
Costs		   Total
Acquisition
Costs		   Number
of
Properties		   Number
of
Beds/Units		  

Skilled Nursing(1)

   $ 14,402   $ 58   $ 14,460     1     120  

Land(2)

     4,638     —     4,638     —     —  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Totals

   $ 19,040   $ 58   $ 19,098     1     120  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       
(1)
A skilled nursing property located in Florida which was added to a master lease at an incremental initial cash yield of 8.75%.
(2)
We purchased three vacant parcels of land in Colorado for a total of $3,475 under a pipeline agreement whereby we have the opportunity to finance any senior housing development project or acquisition originated by an operator through May 2018 (unless earlier terminated as provided for therein). The land was added to an existing master lease and we entered into development commitments in an amount not to exceed $30,256 to fund the construction of three memory care properties, two with 60 units and the other with 48 units. We also purchased four parcels of land held-for-use in Michigan for $1,163.

               The following table summarizes our acquisitions during 2012 (dollar amounts in thousands):

Type of Property
  Purchase
Price		   Transaction
Costs		   Total
Acquisition
Costs		   Number
of
Properties		   Number
of
Beds/Units		  

Skilled Nursing(1)

   $ 79,100   $ 275   $ 79,375     4     522  

Assisted Living(2)

     81,987     285     82,272     5     266  

Land(3)

     5,663     207     5,870     —     —  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Totals

   $ 166,750   $ 767   $ 167,517     9     788  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       
(1)
Includes two skilled nursing properties with a total of 234 beds located in Texas and two skilled nursing properties with a total of 288 beds located in Ohio.
(2)
Includes two properties with a total of 100 units located in Colorado and three properties with a total of 166 units located in New Jersey.
(3)
We purchased four vacant parcels of land in the following states: Colorado, Kansas, Kentucky and Texas. Simultaneous with the purchase, we entered into lease agreements and development commitments in an amount not to exceed $49,702 to fund the construction of a memory care property with 60 units and two assisted living properties with a total of 158 units and one skilled nursing property with 143 beds.

        The following table summarizes our acquisitions during 2011 (dollar amounts in thousands):

Type of Property
  Purchase
Price		   Transaction
Costs		   Total
Acquisition
Costs		   Number
of
Properties		   Number
of
Beds/Units		  

Skilled Nursing(1)(2)

   $ 93,841   $ 330   $ 94,171     7     1,016  

Range of Care(3)

     11,450     34     11,484     2     211  

Land(4)

     844     11     855     —     —  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Totals

   $ 106,135   $ 375   $ 106,510     9     1,227  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       
(1)
Includes two skilled nursing properties with a total of 336 beds located in Texas for $25,500 and a 156-bed skilled nursing property located in California for $17,500.
(2)
We purchased four skilled nursing properties with 524-beds in Texas for $50,841 which consists of $41,000 in cash at closing with the remainder in the form of contingent earn-out payments. The contingent earn-out payment arrangements require us to pay two earn-out payments totaling up to $11,000 upon the properties achieving a sustainable stipulated rent coverage ratio. During 2013 and 2011, we paid $7,000 and $4,000, respectively, related to the contingent earn-out payment. See Note 11. Commitments and Contingencies for further discussion on the contingent earn-out.
(3)
We purchased two senior housing properties located in South Carolina with 118 skilled nursing beds, 40 assisted living units and 53 independent living units for $11,450.
(4)
We acquired a vacant parcel of land in Texas for the purpose of building a replacement skilled nursing property for a purchase price of $844.
Schedule of completed construction projects

    During the twelve months ended December 31, 2013, we completed the following construction projects:

Completed
Date
  Type of Property   Number
of
Beds/Units		   State   Completed Date   2013 Funding   Total Funding  

Jul 2013

   Assisted Living(1)     60     Colorado     Jul 2013   $ 4,316   $ 9,850  

Jul 2013

   Skilled Nursing(2)     120     Texas     Jul 2013     5,065     8,635  

Oct 2013

   Assisted Living(3)     77     Kansas     Oct 2013     8,081     9,675 (3)
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   Totals     257               $ 17,462   $ 28,160  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               
(1)
This new property is a Memory Care property. The funded amount includes acquired land of $1,882.
(2)
This new property replaces a skilled nursing property in our existing portfolio.
(3)
The funded amount includes acquired land of $730.
Schedule of investment commitments

 Excluding the $5,000,000 per year commitment above, the following table summarizes our investment commitments as of December 31, 2013 and year to date funding on our development, redevelopment, renovation, and expansion projects (excludes capitalized interest, dollar amounts in thousands):

Type of Property
  Investment
Commitment		   2013
Funding(2)		   Commitment
Funded		   Remaining
Commitment		   Number
of
Properties		   Number
of
Beds/Units		  

Skilled Nursing

   $ 29,650   $ 7,221   $ 12,757   $ 16,893     6     640  

Assisted Living(1)

     50,656     9,614     10,661     39,995     7     385  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Totals

   $ 80,306   $ 16,835 (3) $ 23,418   $ 56,888 (3)   13     1,025  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           
(1)
Includes the development of three memory care properties for a total of $30,256, one assisted living and memory care combination property for a total of $5,800, and the expansion of three assisted living properties for a total $14,600.
(2)
Excludes funding for completed construction projects shown above and $260 of capital improvement on three completed projects with no remaining commitments. It also includes $6 funded under the commitment as marketing expense, $3,475 of land acquired for development and the reclass of three pre-development loans with a total balance of $479. See Item 7. Notes Receivable for further discussion of the pre-development loans.
(3)
In January 2014, we funded $8,828 under investment commitments. Accordingly, we have a remaining commitment of $48,060.
Schedule of development, redevelopment, renovation, and expansion activity

 Our construction in progress (or CIP) activity during the year ended December 31, 2013 for our development, redevelopment, renovation, and expansion projects is as follows (dollar amounts in thousands):

Properties
  Projects   CIP
Balance at
12/31/2012		   Funded(1)   Capitalized
Interest		   Conversions
out of CIP		   CIP
Balance at
12/31/2013		  

Development projects:

                                      

Assisted living

     6   $ 4,669   $ 18,584   $ 510   $ (17,429 ) $ 6,334  

Skilled nursing

     1     31     5,551     311     —     5,893  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal

     7     4,700     24,135     821     (17,429 )   12,227  

Redevelopment, renovation and expansion projects:

                                      

Other

     1     6     117     —     (123 )   —  

Assisted living

     4     66     21     —     (79 )   8  

Skilled nursing

     5     3,516     6,730     111     (7,924 )   2,433  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal

     10     3,588     6,868     111     (8,126 )   2,441  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     17   $ 8,288   $ 31,003   $ 932   $ (25,555 ) $ 14,668  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           
(1)
Excludes $73 of capital improvement commitment funding which was capitalized directly into building and improvements and includes the reclass of three pre-development loans with a total balance of $479. See Item 7. Notes Receivable for further discussion of the pre-development loans.
Schedule of future minimum base rents receivable

Major Operators, and excluding the effects of straight-line rent and extension options are as follows (in thousands):

 
   Annual Cash
Rent		  

2014

   $ 97,132  

2015

     85,132  

2016

     85,393  

2017

     84,688  

2018

     81,028  

Thereafter

     374,524  
Schedule of components of the income from discontinued operations

 Set forth in the table below are the components of the income from discontinued operations (in thousands):

 
   For the year ended
December 31,		  
 
   2013   2012   2011  

Rental income

   $ 1,123   $ 1,551   $ 1,547  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenues

     1,123     1,551     1,547  

Depreciation and amortization

    
(317
)		  
(540
)		  
(712
)

General and administrative expenses

     (1 )   (6 )   (12 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     (318 )   (546 )   (724 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income from discontinued operations

   $ 805   $ 1,005   $ 823  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
Summary of investments in mortgage loans secured by first mortgages

The following table summarizes our investments in mortgage loans secured by first mortgages at December 31, 2013(dollar amounts in thousands):

 
    
    
    
    
   Number of    
  
Type of Property
  Gross
Investments		   Percentage
of
Investments		   Number
of
Loans		   Number
of
Properties(1)		   SNF
Beds		   ALF
Units		   Investment
per
Bed/Unit		  

Skilled Nursing(2)

   $ 152,401     91.2 %   16     32     3,953     —   $ 38.55  

Assisted Living

     12,112     7.2 %   3     8     —     211   $ 57.40  

Range of Care

     2,602     1.6 %   1     1     99     74   $ 15.04  
                                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Totals

   $ 167,115     100.0 %   20     41     4,052     285        
                                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                 
(1)
We have investments in 9 states that include mortgages to 12 different operators.
(2)
Includes a mortgage and construction loan secured by a currently operating skilled nursing property and parcel of land upon which a 106-bed replacement property is being constructed.
Scheduled of principal payments on mortgage loan receivables

Scheduled principal payments on mortgage loan receivables are as follows (in thousands):

 
   Scheduled
Principal		  

2014

   $ 14,244  

2015

     4,272  

2016

     2,695  

2017

     7,118  

2018

     8,233  

Thereafter

     130,553  
       
​ ​ ​ ​ ​

Total

   $ 167,115  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​