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Real Estate Investments (Tables)
 6 Months Ended
Jun. 30, 2016
Summary of investments in owned properties

The following table summarizes our investments in owned properties at June 30, 2016 (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

 

Assisted Living

 

$
649,818

 
50.3

% 
101

 

 —

 
5,511

 

$
117.91

 

Skilled Nursing

 

 
534,822

 
41.4

%  
69

 
8,546

 

 —

 

$
62.58

 

Range of Care

 

 
43,907

 
3.4

% 
7

 
634

 
274

 

$
48.36

 

Under Development(2)

 

 
43,353

 
3.4

% 

 —

 

 —

 

 —

 

 

 —

 

Other(3)

 

 
19,486

 
1.5

% 
2

 
118

 

 —

 

 

 —

 

Totals

 

$
1,291,386

 
100.0

% 
179

 
9,298

 
5,785

 

 

 

 

(1)

We own properties in 28 states that are leased to 28 different operators.

 

(2)

Represents five development projects consisting of three memory care communities with a total of 198 units, a 108-unit independent living community and an 89-unit combination assisted living and memory care community.

 

(3)

Includes one school, three parcels of land held-for-use, and one behavioral health care hospital. The behavioral health care hospital has two licensed skilled nursing beds and 116 acute care hospital beds which represents a $78.39 investment per bed.
Summary of investments acquired

The following table summarizes our acquisitions for the six months ended June 30, 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Total

    

Number

    

Number

 

 

Purchase

 

Transaction

 

Acquisition

 

of

 

of

Type of Property

 

Price

 

Costs(1)

 

Costs

 

Properties

 

Beds/Units

Skilled Nursing(2)

 

$
16,000

 

$
45

 

$
16,045

 
1

 
126

Assisted Living(3)

 

 
53,550

 

 
346

 

 
53,896

 
4

 
270

Totals

 

$
69,550

 

$
391

 

$
69,941

 
5

 
396

(1)

Represents cost associated with our acquisitions; however, depending on the accounting treatment of our acquisitions, transaction costs may be capitalized to the properties’ basis and, for our land purchases with forward development commitments, transaction costs are capitalized as part of construction in progress. Additionally, transaction costs may include costs related to the prior year due to timing and terminated transactions.

 

(2)

We acquired a newly constructed 126-bed skilled nursing center in Texas.

 

(3)

We acquired a newly constructed memory care community in Kentucky for $14,250 including a $2,000 holdback, a newly constructed assisted living and memory care community in Georgia for $14,300 and two memory care communities in Kansas for an aggregate purchase price of $25,000.  

 

The following table summarizes our acquisitions for the six months ended June 30, 2015 (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.

 

(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 MC, an ILF and a combination ALF and MC. Additionally, we acquired land and existing improvements on a MC and entered a development commitment up to $12,182 to complete the development of the property.

 

Schedule of completed development, improvement and construction projects

The following table summarizes our completed projects during the six months ended June 30, 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Number

    

 

    

Number

    

 

    

 

 

 

 

 

of

 

Type of

 

of

 

 

 

 

 

 

Type of Project

 

Properties

 

Property

 

Beds/Units

 

State

 

Total Funding

 

Development

 

1

 

ALF

 

66

 

Illinois

 

$
12,178

 

Development

 

1

 

ALF

 

56

 

Texas

 

 
12,712

 

 

 

2

 

 

 

122

 

 

 

$
24,890

 

 

Schedule of commitments

At June 30, 2016, we had commitments as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Total

    

 

 

    

 

 

Investment

 

2016

 

Commitment

 

Remaining

 

 

    

Commitment

    

Funding

    

Funded

    

Commitment

 

Real estate properties (See Note 2)

 

$
99,152

(1)

$
27,400

 

$
60,523

 

$
38,629

 

Accrued incentives and earn-out liabilities (2)

 

 
18,600

 

 
1,434

 

 
2,239

 

 
16,361

 

Lease incentives

 

 
6,202

 

 
593

 

 
1,048

 

 
5,154

 

Mortgage loans (See Note 2)

 

 
63,490

(1)

 
3,879

 

 
14,142

 

 
49,348

 

Joint venture investments (See Note 3)

 

 
25,650

 

 
480

 

 
20,623

 

 
5,027

 

Notes receivable (See Note 4)

 

 
2,525

 

 
122

 

 
297

 

 
2,228

 

Totals

 

$
215,619

 

$
33,908

 

$
98,872

 

$
116,747

 

(1)

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

 

(2)

During the three and six months ended June 30, 2016, we recorded non‑cash interest expense of $315,000 related to these contingent liabilities and the fair value of our contingent payments was $13,717,000 at June 30, 2016.
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, 2016 (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

  

$
220,465

  
93.7

%  
13

  
29

  
3,788

  

 —

  

$
58.20

 

Assisted Living

 

 
13,569

 
5.8

%  
3

 
8

 

 —

 
270

 

$
50.26

 

Other(2)

 

 
1,209

 
0.5

%  
1

 

 —

 

 —

 

 —

 

 

 —

 

Totals

 

$
235,243

 
100.0

%  
17

 
37

 
3,788

 
270

 

 

 

 

(1)

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

 

(2)

Includes a parcel of land secured under a short-term mortgage loan.
Schedule of additional loan commitments and amounts funded under the mortgage loans

The following table summarizes our mortgage loan origination and funding for the six months ended June 30, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 

 

 

    

2016

    

2015

 

 

 

Origination/Funding

 

Origination/Funding

 

Skilled Nursing Centers

 

$
17,128

 

$
52,847

 

 

Development and Improvement Projects  
Schedule of commitments

The following table summarizes our investment in development and improvement projects for the six months ended June 30, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2016

 

Six months ended June 30, 2015

 

 

 

 

Expansion,

 

 

 

Expansion,

 

 

 

 

Renovation and

 

 

 

Renovation and

 

    

Development

    

Improvements

    

Development

    

Improvements

Assisted Living Communities

 

$
26,331

 

$
1,293

 

$
5,976

 

$
3,609

Skilled Nursing Centers

 

 

 —

 

 
2,794

 

 
1,830

 

 
2,340

 

 

$
26,331

 

$
4,087

 

$
7,806

 

$
5,949