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Real Estate Investments (Tables)
 6 Months Ended
Jun. 30, 2015
Summary of investments in owned properties

The following table summarizes our investments in owned properties at June 30, 2015 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

Percentage

 

Number

 

Number of

 

Investment

 

 

 

Gross

 

of

 

of

 

SNF

 

ALF

 

per

 

Type of Property

    

Investments

    

Investments

    

Properties(1)

    

Beds

    

Units

    

Bed/Unit

 

Skilled Nursing

 

$
500,152

 
50.6

%  
69

 
8,513

 

 —

 

$
58.75

 

Assisted Living

 

 
416,817

 
42.1

% 
85

 

 —

 
4,236

 

$
98.40

 

Range of Care

 

 
43,907

 
4.4

% 
7

 
634

 
274

 

$
48.36

 

Under Development(2)

 

 
17,404

 
1.8

% 

 —

 

 —

 

 —

 

 

 —

 

Other(3)

 

 
10,883

 
1.1

% 
1

 

 —

 

 —

 

 

 —

 

Totals

 

$
989,163

 
100.0

% 
162

 
9,147

 
4,510

 

 

 

 

(1)

We own properties in 27 states that are leased to 29 different operators.

 

(2)

Represents five development projects consisting of three MC properties with a total of 188 units, a 108-unit independent living property and an 89-unit combination ALF and MC property.

 

Represents one school property and five parcels of land held-for-use.

Summary of investments acquired

During the six months ended June 30, 2015, we acquired the following investments (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Total

    

Number

    

Number

 

 

Purchase

 

Transaction

 

Acquisition

 

of

 

of

Type of Property

 

Price

 

Costs

 

Costs

 

Properties

 

Beds/Units

Skilled Nursing(1)

 

$
13,946

 

$

 —

 

$
13,946

 
1

 
106

Land(2)

 

 
11,011

 

 
78

 

 
11,089

 

 —

 

 —

Totals

 

$
24,957

 

$
78

 

$
25,035

 
1

 
106

(1)

We purchased and equipped the property by exercising our purchase option under a $10,600 mortgage and construction loan. The property was added to an existing master lease at a lease rate equivalent to the interest rate in effect on the loan at the time the purchase option was exercised. Additionally, we paid the lessee a $1,054 lease inducement which will be amortized as a yield adjustment over the life of the lease term. See Mortgage Loans below for further discussion of the loan agreement.

 

(2)

We acquired parcels of land and entered into three development commitments in an amount not to exceed $42,922, including the land purchases, for the development of a 66-unit MC property, a 108-unit IL property and an 89-unit combination AL and MC property. Additionally, we acquired land and existing improvements on a 56-unit MC property and entered a development commitment up to $12,182 to complete the development of the MC property.
Schedule of commitments

At June 30, 2015, we had additional commitments as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment

 

2015

 

Commitment

 

Remaining

 

 

    

Commitment

    

Funding

    

Funded

    

Commitment

 

Real estate properties (See Note 2)

 

$
78,152

(1)

$
15,698

 

$
17,785

 

$
60,367

 

Mortgage loans (See Note 2)

 

 
33,990

(1)

 
3,347

 

 
6,685

 

 
27,305

 

Notes receivable (See Note 4)

 

 
3,288

(2)

 
367

 

 
1,255

 

 
2,033

 

Totals

 

$
115,430

 

$
19,412

 

$
25,725

 

$
89,705

 

(1)

Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand senior housing and long term care properties.

 

Represents loan and line of credit commitments.

Schedule of development, redevelopment, renovation, and expansion activity

Our construction in progress (or CIP) activity during the six months ended June 30, 2015 for our development, redevelopment, renovation, and expansion projects is as follows (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

CIP

    

 

 

    

 

 

    

 

 

    

CIP

 

 

 

Balance at

 

 

 

 

Capitalized

 

Conversions

 

Balance at

 

Type of Property

 

12/31/2014

 

Funded(1)

 

Interest

 

out of CIP

 

6/30/2015

 

Skilled nursing

 

$

 —

 

$
404

 

$

 —

 

$
(397)

 

$
7

 

Assisted living

 

 
8,671

 

 
12,075

 

 
297

 

 
(9,503)

 

 
11,540

 

Total

 

$
8,671

 

$
12,479

 

$
297

 

$
(9,900)

 

$
11,547

 

Excludes $7,907 of funding directly capitalized into building and includes the previously discussed acquisition of the existing improvements of the 56-unit MC property for $6,315 and a reclass of a $316 pre-development loan.

Schedule of additional loan commitments and amounts funded under the mortgage loans

The following table summarizes our additional loan commitments as of June 30, 2015, and amounts funded under these mortgage loans (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Additional

    

 

 

    

 

 

    

 

 

    

Number

    

Number

 

 

 

Loan

 

2015

 

Commitment

 

Remaining

 

of

 

of

 

Type of Property

 

Commitment

 

Funding

 

Funded

 

Commitment

 

Properties

 

Beds/Units

 

Skilled Nursing

 

$
33,500

 

$
3,117

 

$
6,455

 

$
27,045

 
16

 
2,215

 

Assisted Living

 

 
490

 

 
230

 

 
230

 

 
260

 
1

 
100

 

Totals

 

$
33,990

 

$
3,347

 

$
6,685

 

$
27,305

 
17

 
2,315

 

 

Summary of investments in mortgage loans secured by first mortgages

The following table summarizes our investments in mortgage loans secured by first mortgages at June 30, 2015 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage

 

Number

 

Number

 

Number of

 

Investment

 

 

 

Gross

 

of

 

of

 

of

 

SNF

 

ALF

 

per

 

Type of Property

 

Investments

 

Investments

 

Loans

 

Properties(1)

 

Beds

 

Units

 

Bed/Unit

 

Skilled Nursing

    

$
191,983

    
93.2

%  
14

    
28

    
3,621

    

 —

    

$
53.02

 

Assisted Living

 

 
14,109

 
6.8

%  
3

 
8

 

 —

 
270

 

$
52.26

 

Totals

 

$
206,092

 
100.0

%  
17

 
36

 
3,621

 
270

 

 

 

 

We have investments in properties located in 7 states that include mortgages to 10 different operators.

Real Estate Properties Commitments [Member]  
Schedule of commitments

The following table summarizes our on-going investment commitments as of June 30, 2015, and amounts funded exclusively under these projects (excludes capitalized interest, dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Number

    

Number

 

 

 

Investment

 

2015

 

Commitment

 

Remaining

 

of

 

of

 

Type of Property

 

Commitment

 

Funding(3)

 

Funded

 

Commitment

 

Properties

 

Beds/Units

 

Skilled Nursing(1)

 

$
6,000

 

$
7

 

$
7

 

$
5,993

 
2

 
314

 

Assisted Living(2)

 

 
72,152

 

 
15,691

 

 
17,778

 

 
54,374

 
29

 
1,414

 

Totals

 

$
78,152

 

$
15,698

 

$
17,785

 

$
60,367

 
31

 
1,728

 

(1)

Includes two commitments for renovation projects.

 

(2)

Includes the development for an IL property for $14,500,  three MC properties for a total commitment of $36,316 and one ALF/MC property for a total commitment of $16,536. Also, includes three commitments for renovation projects on 24 ALFs totaling $4,800. 

 

(3)

Includes $11,011 from the acquisition of land and improvements, as previously discussed, and a reclass of a $316 pre-development loan. See Note 7. Notes Receivable for further discussion of the pre-development loan. Excludes $9,384 of funding on completed development and improvement projects.