Real Estate Investments (Tables)

9 Months Ended

Sep. 30, 2017

Real Estate Investments

Summary of investments in owned properties

Owned Properties. The following table summarizes our investments in owned properties at September 30, 2017 (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	$	743,015	54.6	%	103	—	5,772	$	128.73
Skilled Nursing(2)		579,758	42.6	%	76	9,276	274	$	60.71
Under Development(3)		26,597	2.0	%	—	—	—		—
Other(4)		10,216	0.8	%	1	118	—		—
Totals	$	1,359,586	100.0	%	180	9,394	6,046

⁽¹⁾ We own properties in 27 states that are leased to 27 different operators.

⁽²⁾ Includes seven communities previously classified as ROC with ALF units.

⁽³⁾ Represents three development projects consisting of two MC with a total of 132 units and a 143-bed SNF.

⁽⁴⁾ Includes three parcels of land held-for-use, and one behavioral health care hospital.

Summary of investments acquired

Acquisitions and Developments: The following table summarizes our acquisitions for the nine months ended September 30, 2017 (dollar amounts in thousands):

					Total		Number	Number
	Purchase		Transaction		Acquisition		of	of
Type of Property	Price		Costs(1)		Costs		Properties	Beds/Units
Assisted Living(2)	$	54,463	$	341	$	54,804	3	240

⁽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, we expense transaction costs related to the prior year due to timing and terminated transactions.

⁽²⁾ We acquired a 107-unit assisted living community and a 73-unit memory care community for an aggregate purchase price of $38,813. Additionally, we acquired a 60-unit memory care community for $15,650.

Subsequent to September 30, 2017, we acquired a newly constructed 73-unit assisted living and memory care community in Missouri for $16,555,000. The property was added to an existing master lease agreement at an initial cash yield of 7%.

The following table summarizes our acquisitions for the nine months ended September 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		411		53,961	4	250
Land(4)		5,425		63		5,488	—	—
Totals	$	74,975	$	519	$	75,494	5	376

⁽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, we expense transaction 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.

⁽⁴⁾ We acquired a parcel of land and improvements and entered into a development commitment of up to $24,325, including the land and bed rights purchase, for the development of a 143-bed skilled nursing center in Kentucky.

Schedule of development, improvement and construction projects

During the nine months ended September 30, 2017 and 2016, we invested the following in development and improvement projects (in thousands):

	Nine months ended September 30, 2017				Nine months ended September 30, 2016
	Development		Improvements		Development		Improvements
Assisted Living Communities	$	10,366	$	951	$	35,623	$	2,134
Skilled Nursing Centers		3,573		1,357		-		3,432
	$	13,939	$	2,308	$	35,623	$	5,566

Summary of investments in mortgage loans secured by first mortgages

The following table summarizes our investments in mortgage loans secured by first mortgages at September 30, 2017 (dollar amounts in thousands):

			Number of			Investment
	Gross				SNF	per
Type of Property	Investments		Loans	Properties(1)	Beds	Bed/Unit
Skilled Nursing	$	224,095	5	21	2,764	$	81.08

⁽¹⁾ We have investments in properties located in two states that include mortgages to two operators.

Schedule of mortgage loan activity

The following table summarizes our mortgage loan activity for the nine months ended September 30, 2017 and 2016 (in thousands):

	Nine months ended September 30,
	2017		2016
	Origination/Funding		Origination/Funding
Originations and fundings under mortgage loans receivable	$	9,333	$	19,113
Pay-offs received		(16,665)		(746)
Scheduled principal payments received		(686)		(1,371)
Net (decrease) increase in mortgage loans receivable	$	(8,018)	$	16,996