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Subsequent Events
 9 Months Ended
Sep. 30, 2012
Subsequent Events  
Subsequent Events

12.                            Subsequent Events

 

Subsequent to September 30, 2012 the following events occurred.

 

We declared a monthly cash dividend of $0.155 per share on our common stock for the months of October, November and December 2012, payable on October 31, November 30, and December 31, 2012, respectively, to stockholders of record on October 23, November 21, and December 21, 2012, respectively.

 

We purchased vacant land in Kansas for $730,000. Simultaneous with the purchase, we entered into a lease agreement and development commitment in an amount not to exceed $9,855,000 to fund the construction of a 77-unit assisted living and memory care property. Concurrently with the purchase, we funded $492,000 under the development commitment. Rent under the lease will begin upon the earlier of project completion or the fifteenth month following the effective date of lease.  Initial rent at the rate of 9.25% will be calculated based on the land purchase price and construction costs funded plus 9.0% compounded on each advance under the commitment from the disbursement date until the earlier of project completion or the improvement deadline.  The lease has a 10-year initial term, two 5-year renewal options and annual escalations of 2.5%.

 

We repaid $6,000,000 under our Unsecured Credit Agreement.  Accordingly, we had $29,500,000 outstanding under our Unsecured Credit Agreement with $210,500,000 available for borrowing.

 

We funded the following capital improvement commitments and investments (dollar amounts in thousands):

 

Commitment

 

Expiration
Date

 

Funded in
October 2012

 

Used
Commitment

 

Open
Commitment

 

Initial Cash
Yield

 

 

Property
Type

 

Properties

 

$  1,700

 

 

3/31/13

 

 

$    219

 

 

$    711

 

 

$    989

 

 

9.00%

 

(1)

 

SNF

 

2

 

 8,250

 

 

10/11/13

 

 

426

 

 

918

 

 

7,332

 

 

9.00%

 

(1)

 

UDP(3)

 

—

 

7,935

 

 

12/1/13

 

 

847

 

 

2,285

 

 

5,650

 

 

9.25%

 

(1)

 

UDP(4)

 

—

 

9,855

 

 

10/23/14

 

 

492

 

 

492

 

 

9,363

 

 

9.25%

 

(1)

 

UDP(5)

 

—

 

30

 

 

8/31/15

 

 

30

 

 

30

 

 

—

 

 

 

 

(2)

 

EDU

 

1

 

$27,770

 

 

 

 

 

$2,014

 

 

$4,436

 

 

$23,334

 

 

 

 

 

 

 

 

 

 

 

 

(1)          Minimum rent will increase upon final funding and project completion or in some cases, the improvement deadline as defined in each lease agreement.

 

(2)          The yield is included in the initial lease rate.

 

(3)          This commitment is to construct a 120-bed skilled nursing property in Texas which will replace an existing 90-bed skilled nursing property we own.

 

(4)          This commitment is to construct a 60-unit free-standing memory care property on a vacant parcel of land in Colorado.

 

(5)         This commitment is to construct a 77-unit assisted living and memory care property, as previously discussed above.

 

We funded and received the following under our loan commitments and investments (dollar amounts in thousands):

 

 

Commitment

 

Expiration
Date

 

(Received)/
Funded in
October
2012

 

Used
Commitment

 

 

Open
Commitment

 

 

Initial
Cash
Yield

 

$250

 

 

11/30/12

 

$(50) 

 

$150 

 

 

$100 

 

 

9.00%

 

667

 (1)

 

12/31/12

 

177 

 

370 

 

 

297 

 

 

9.00%

 

$917

 

 

 

 

$127 

 

$520 

 

 

$397 

 

 

 

 

 

 

(1)          This commitment is a construction and term loan for capital improvements at a skilled nursing property we own and lease to the borrower. Upon the earlier of the full funding of the commitment or December 31, 2012, construction distribution under this loan will cease and this loan will fully amortize to maturity in May 2018.