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Real Estate Investments (Tables)
 12 Months Ended
Dec. 31, 2017
Real Estate Investments  
Schedule of future minimum base rents receivable

Future minimum base rents receivable under the remaining non‑cancelable terms of operating leases excluding the effects of straight‑line rent, amortization of lease inducement and renewal options are as follows (in thousands):

 

 

 

 

 

 

    

Annual Cash

 

 

 

Rent (1)

 

2018

 

$

129,873

 

2019

 

 

129,641

 

2020

 

 

131,948

 

2021

 

 

117,646

 

2022

 

 

104,016

 

Thereafter

 

 

674,779

 

(1)

Represents contractual annual cash rent, except for one master lease which is based on an agreed upon cash rent. See below for more information.

 

Summary of investments acquired

Acquisitions. The following table summarizes our acquisitions for the twelve months ended December 31, 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)

 

$

81,018

 

$

569

 

$

81,587

 

 5

 

400

Land(3)

 

 

800

 

 

18

 

 

818

 

 —

 

 —

Totals

 

$

81,818

 

$

587

 

$

82,405

 

 5

 

400

(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 our construction in progress. We expense the cost related to terminated transactions, and transaction costs related to the prior year due to timing.

 

(2)

We acquired a 107-unit ALF and a 73-unit MC for an aggregate purchase price of $38,813, a 60-unit MC for $15,650 and a 73-unit ALF/MC community for $16,555. Furthermore, we entered into a partnership agreement and acquired an 87-unit ALF/MC community for $10,000. See Note 9. Equity for further discussion related to our partnerships and non-controlling interest.

 

(3)

We entered into a partnership agreement for the acquisition of land and development of a 110-unit ILF/ALF/MC community in Wisconsin. The commitment totals approximately $22,471, including the land purchase. See Note 9. Equity for further discussion related to our partnerships and non-controlling interest.

The following table summarizes our acquisitions for the twelve months ended December 31, 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

 

 

423

 

 

53,973

 

 4

 

250

Land(4)

 

 

6,891

 

 

108

 

 

6,999

 

 —

 

 —

Totals

 

$

76,441

 

$

576

 

$

77,017

 

 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 our construction in progress. We expense the cost related to terminated transactions, and transaction costs related to the prior year due to timing.

 

(2)

We acquired a newly constructed 126-bed SNF in Texas.

 

(3)

We acquired a newly constructed MC in Kentucky for $14,250 which includes a $2,000 holdback, a newly constructed ALF and MC in Georgia for $14,300 and two MCs in Kansas for an aggregate purchase price of $25,000.

 

(4)

We acquired a parcel of land and improvement 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 SNF in Kentucky. Also, we purchased a parcel of land in Illinois and entered into a development commitment to construct a MC. The commitment totals approximately $14,500, including the land purchase.

 

The following table summarizes our acquisitions for the twelve months ended December 31, 2015 (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)

 

$

36,946

 

$

87

 

$

37,033

 

 3

 

360

 

Assisted Living(3)

 

 

156,097

 

 

590

 

 

156,687

 

11

 

951

 

Other (4)

 

 

9,250

 

 

42

 

 

9,292

 

 1

 

118

 

Land(5)

 

 

16,333

 

 

352

 

 

16,685

 

 —

 

 —

 

Totals

 

$

218,626

 

$

1,071

 

$

219,697

 

15

 

1,429

 

 

(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 our construction in progress. We expense the cost related to terminated transactions, and transaction costs related to the prior year due to timing.

 

(2)

We purchased a property in Wisconsin by exercising our purchase option under a $10,600 mortgage and construction loan and equipped the property for $3,346. Also, we acquired two SNFs in Texas totaling 254 beds for an aggregate purchase price of $23,000.

 

(3)

Includes acquisition of a newly constructed 60-unit MC community for $14,250 including a $2,000 working capital reserve which was recorded similarly to an earn-out and valued at $1,847 using a discounted cash flow analysis. As a result, our basis in the property was recorded at $14,132 which includes capitalized transaction costs. Also includes acquisition of a portfolio comprised of 10 ILFs, ALFs and MCs for $142,000. 

 

(4)

We purchased a behavioral health care hospital in Nevada comprised of 116 medical hospital beds and 2 skilled nursing beds for $9,300.

 

(5)

We acquired five parcels of land and entered into development commitments up to an aggregate total of $70,298, including the land purchases, for the development of three MC communities totaling 198 units, a 108-unit IL community and an 89-unit ALF and MC community. We also purchased a parcel of land we previously leased pursuant to a ground lease. Additionally, we acquired land and existing improvements on a 56-unit MC community and entered a development commitment up to a total of $13,524, including the land purchase, to complete the development of the MC community.
Schedule of investment in development and improvement projects

Developments and Improvements. The following table summarizes our investment in development and improvement projects for the years 2017, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Developments

 

Improvements

 

    

2017

    

2016

 

 

2015

    

2017

    

 

2016

 

2015

Assisted Living Communities

 

$

17,667

 

$

41,859

 

$

24,099

 

$

1,152

 

$

3,034

 

$

3,950

Skilled Nursing Centers

 

 

5,234

 

 

483

 

 

1,830

 

 

1,356

 

 

3,758

 

 

3,584

Other

 

 

 —

 

 

 —

 

 

 —

 

 

391

 

 

 -

 

 

 -

Totals

 

$

22,901

 

$

42,342

 

$

25,929

 

$

2,899

 

$

6,792

 

$

7,534

 

Schedule of completed projects

Completed Projects. The following table summarizes our completed projects during the year ended December 31, 2017 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Number

    

 

    

Number

    

 

    

 

 

    

 

 

 

 

 

of

 

Type of

 

of

 

 

 

 

 

 

 

 

 

Type of Project

 

Properties

 

Property

 

Beds/Units

 

State

 

2017 Funding

 

Total Funding

 

Development

 

1

 

MC

 

66

 

Illinois

 

$

7,753

 

$

13,498

 

 

The following table summarizes our completed projects during the year ended December 31, 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Number

    

 

    

Number

    

 

    

 

 

    

 

 

 

 

 

of

 

Type of

 

of

 

 

 

 

 

 

 

 

 

Type of Project

 

Properties

 

Property

 

Beds/Units

 

State

 

2016 Funding

 

Total Funding

 

Development

 

1

 

MC

 

66

 

Illinois

 

$

2,980

 

$

12,248

 

Development

 

1

 

MC

 

56

 

Texas

 

 

1,110

 

 

11,776

 

Development

 

1

 

MC

 

66

 

Illinois

 

 

7,331

 

 

11,962

 

Development

 

1

 

MC

 

66

 

California

 

 

7,716

 

 

12,400

 

Development

 

1

 

ALF/MC

 

89

 

South Carolina

 

 

9,170

 

 

15,080

 

Development

 

1

 

ILF

 

108

 

Kansas

 

 

11,235

 

 

13,423

 

Improvement

 

1

 

SNF

 

160

 

Arizona

 

 

3,432

 

 

4,672

 

 

 

7

 

 

 

611

 

 

 

$

42,974

 

$

81,561

 

The following table summarizes our completed projects during the year ended December 31, 2015 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Number

    

 

    

Number

    

 

    

 

 

    

 

 

 

 

 

of

 

Type of

 

of

 

 

 

 

 

 

 

 

 

Type of Project

 

Properties

 

Property

 

Beds/Units

 

State

 

2015 Funding

 

Total Funding

 

Development

 

1

 

MC

 

60

 

Colorado

 

$

1,522

 

$

10,703

 

Improvement

 

1

 

SNF

 

121

 

California

 

 

1,481

 

 

1,481

 

Improvement

 

1

 

SNF

 

196

 

Texas

 

 

522

 

 

522

 

Improvement

 

2

 

SNF

 

141

 

Tennessee

 

 

39

 

 

2,200

 

 

 

5

 

 

 

518

 

 

 

$

3,564

 

$

14,906

 

 

Schedule of mortgage loan activity

The following table summarizes our mortgage loan activity for the years ended December 31, 2017, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

    

2017

 

2016

    

2015

 

Originations and funding under mortgage loans receivable

 

$

11,913

 

$

20,685

 

$

67,134

 

Pay-offs received

 

 

(16,665)

 

 

(6,036)

 

 

(2,487)

 

Scheduled principal payments received

 

 

(1,202)

 

 

(2,242)

 

 

(2,321)

 

Net (decrease) increase in mortgage loans receivable

 

$

(5,954)

 

$

12,407

 

$

62,326

 

 

Scheduled principal payments on mortgage loan receivables

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

 

 

 

 

 

 

    

Scheduled

 

 

 

Principal

 

2018

 

$

1,077

 

2019

 

 

2,124

 

2020

 

 

8,815

 

2021

 

 

1,065

 

2022

 

 

1,065

 

Thereafter

 

 

212,016

 

Total

 

$

226,162

 

 

Schedule of early mortgage loan payoffs

The following table summarizes our early mortgage loan payoffs during the years 2017, 2016 and 2015 (dollar amounts in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early

 

Number

 

 

 

 

 

 

Principal

 

of

 

 

 

 

 

 

Payoff

 

Loans

 

State

 

2017

 

$

10,795

 
4

 

AZ/MI/TX

 

2016

 

$

6,036

 
9

 

MI/TX/WA

 

2015

 

$

2,487

 
2

 

CA/TX