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Real Estate Investments (Tables)
 12 Months Ended
Dec. 31, 2018
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)

 

2019

 

$

133,666

 

2020

 

 

140,353

 

2021

 

 

131,284

 

2022

 

 

121,235

 

2023

 

 

124,897

 

Thereafter

 

 

760,163

 

(1)

Represents contractual annual cash rent, except for two master leases which are based on agreed upon cash rents. See below for more information.
Summary of investments acquired

Acquisitions. The following table summarizes our acquisitions for the years ended December 31, 2018 through 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

Number

 

Number

 

 

 

 

Purchase

 

Transaction

 

Acquisition

 

of

 

of

Year

 

Type of Property

 

Price

 

Costs (1)

 

Costs

 

Properties

 

Beds/Units

2018 (2)

 

Assisted Living (3) (4)

 

$

39,600

 

$

65

 

$

39,665

 

 3

 

177

 

 

Land (4)

 

 

695

 

 

48

 

 

743

 

 —

 

 —

Total

 

 

 

$

40,295

 

$

113

 

$

40,408

 

 3

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

Assisted Living (5)

 

$

81,018

 

$

569

 

$

81,587

 

 5

 

400

 

 

Land (6)

 

 

800

 

 

18

 

 

818

 

 —

 

 —

Total

 

 

 

$

81,818

 

$

587

 

$

82,405

 

 5

 

400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

Skilled Nursing (7)

 

$

16,000

 

$

45

 

$

16,045

 

 1

 

126

 

 

Assisted Living (8)

 

 

53,550

 

 

423

 

 

53,973

 

 4

 

250

 

 

Land (9)

 

 

6,891

 

 

108

 

 

6,999

 

 —

 

 —

Total

 

 

 

$

76,441

 

$

576

 

$

77,017

 

 5

 

376

(1)

Represents cost associated with our acquisitions; however, upon adoption of ASU 2017-01, our acquisitions meet the definition of an asset acquisition resulting in capitalization of transaction costs to the properties’ basis. For our land purchases with forward development commitments, transaction costs are capitalized as part of construction in progress. Transaction costs per our consolidated statements of income and comprehensive income represents current and prior year transaction costs due to timing and terminated transactions.

 

(2)

Subsequent to December 31, 2018, we entered into a joint venture (“JV”) to purchase an existing operational 74-unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,950 in cash. Our economic interest in the real estate JV will be approximately 95%.  

 

(3)

We acquired two MC in Texas.

 

(4)

We entered into a JV to develop, purchase and own seniors housing properties. During 2018, the JV purchased land for the development of a 78-unit ALF/MC in Oregon for a total anticipated project cost of $18,108. The non-controlling partner contributed $1,081 of cash and we committed to fund the remaining $17,027 project cost. Additionally, during 2018, in a sale-leaseback transaction, the JV purchased an existing operational 89-unit ILF adjacent to the 78-unit ALF/MC we are developing for $14,400. The non-controlling partner contributed $2,857 of equity and we contributed $11,543 in cash. Upon completion of the development project, our combined economic interest in the JV will be approximately 88%. We account for the JV on a consolidated basis. See Note 10. Equity for further discussion related to our partnerships and non-controlling interests.

 

(5)

We acquired an ALF and a MC in California, a MC in Ohio and an ALF/MC in Missouri. Furthermore, we entered into a JV and acquired an ALF/MC community. See Note 10. Equity for further discussion related to our partnerships and non-controlling interest.

 

(6)

We entered into a JV for the acquisition of land and development of an ALF/MC/ILF community in Wisconsin. See Note 10. Equity for further discussion related to our partnerships and non-controlling interest.

 

(7)

We acquired a newly constructed SNF in Texas.

 

(8)

We acquired a newly constructed MC in Kentucky, a newly constructed ALF/MC in Georgia and two MCs in Kansas.

 

(9)

We acquired a parcel of land and improvement and entered into a development commitment for the development of a SNF. Also, we purchased a parcel of land in Illinois and entered into a development commitment to construct a MC.

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 2018, 2017 and 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

 

2016

 

Type of Property

 

Developments

 

Improvements

 

 

Developments

 

 

Improvements

 

 

 

Developments

 

 

Improvements

 

Assisted Living Communities

 

$

27,505

 

$

2,292

 

 

$

17,667

 

$

1,152

 

 

$

41,859

 

$

3,034

 

Skilled Nursing Centers

 

 

7,774

 

 

500

 

 

 

5,234

 

 

1,356

 

 

 

483

 

 

3,758

 

Other

 

 

 —

 

 

457

 

 

 

 —

 

 

391

 

 

 

 —

 

 

 —

 

Total

 

$

35,279

 

$

3,249

 

 

$

22,901

 

$

2,899

 

 

$

42,342

 

$

6,792

 

 

Schedule of completed projects

Completed Projects. The following table summarizes our completed projects during the years ended December 31, 2018, 2017 and 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

Type

 

Number

 

 

 

 

 

 

 

 

 

 

of

 

of

 

of

 

 

 

 

Total

 

Year

 

Type of Project

 

Properties

 

Property

 

Beds/Units

 

State

 

Investment

 

2018

 

Development

 

1

 

MC

 

66

 

Illinois

 

$

14,998

 

Total

 

 

 

1

 

 

 

66

 

 

 

$

14,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

Development

 

1

 

MC

 

66

 

Illinois

 

$

13,498

 

Total

 

 

 

1

 

 

 

66

 

 

 

$

13,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

Development

 

1

 

MC

 

66

 

Illinois

 

$

12,248

 

 

 

Development

 

1

 

MC

 

56

 

Texas

 

 

11,776

 

 

 

Development

 

1

 

MC

 

66

 

Illinois

 

 

11,962

 

 

 

Development

 

1

 

MC

 

66

 

California

 

 

12,400

 

 

 

Development

 

1

 

ALF/MC

 

89

 

South Carolina

 

 

15,080

 

 

 

Development

 

1

 

ILF

 

108

 

Kansas

 

 

13,423

 

 

 

Improvement

 

1

 

SNF

 

160

 

Arizona

 

 

4,672

 

Total

 

 

 

7

 

 

 

611

 

 

 

$

81,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of properties held-for-sale

Properties held-for-sale.  The following table summarizes our properties held-for-sale at December 31, 2018 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type

 

Number

 

 

 

 

 

 

 

Number

 

 

of

 

of

 

 

Gross

 

 

Accumulated

 

of

State

 

Property

 

Properties

 

 

Investment

 

 

Depreciation

 

Beds/units

Texas

 

ILF

 

 1

 

 

5,746

 

 

1,916

 

140

Totals

 

 

 

 1

 

$

5,746

 

$

1,916

 

140

 

Schedule of real estate investment property sold

Property Sales. The following table summarizes property sales during the years ended December 31, 2018 through 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type

 

Number

 

Number

 

 

 

 

 

 

 

 

Net

 

 

 

 

of

 

of

 

of

 

 

Sales

 

 

Carrying

 

 

Gain

Year

 

State

 

Properties

 

Properties

 

Beds

 

 

Price

 

 

Value

 

 

(Loss)

2018

 

Alabama, Florida and Georgia

 

SNF

 
4

 
454

 

$

27,975

 

$

5,695

 

$

21,987

 

 

Kansas

 

ALF

(1)

 —

 

 —

 

 

350

 

 

346

 

 

 —

 

 

Ohio and Pennsylvania

 

ALF

 
6

 
320

 

 

67,500

 

 

16,352

 

 

48,695

Total 2018

 

 

 

 

 

10

 

774

 

$

95,825

 

$

22,393

 

$

70,682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

Indiana, Iowa and Oregon

 

ALF

 
5

 
211

 

$

15,650

 

$

10,107

 

$

4,985

 

 

Texas

 

SNF

(2)
1

 
85

 

 

 —

 

 

1,170

 

 

(1,171)

Total 2017

 

 

 

 

 
6

 
296

 

$

15,650

 

$

11,277

 

$

3,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

Florida

 

ALF

 
2

 
174

 

$

6,850

 

$

4,869

 

$

1,973

 

 

Texas

 

SNF

 
2

 

235

 

 

6,750

 

 

4,923

 

 

1,802

 

 

New Jersey

 

OTH

 
1

 

 —

 

 

3,850

 

 

3,997

 

 

(193)

Total 2016

 

 

 

 

 
5

 
409

 

$

17,450

 

$

13,789

 

$

3,582

(1)

We sold land adjacent to an existing ALF community in Kansas.

 

We donated a SNF with a carrying value of $1,170 to a nonprofit health care provider.

Schedule of mortgage loan activity

The following table summarizes our mortgage loan activity for the years ended December 31, 2018, 2017 and 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

 

2016

 

Originations and funding under mortgage loans receivable

 

$

21,364

(1)

$

11,913

 

$

20,685

 

Pay-offs received

 

 

(1,086)

 

 

(16,665)

 

 

(6,036)

 

Scheduled principal payments received

 

 

(1,050)

 

 

(1,198)

 

 

(2,242)

 

Mortgage loan (premiums)

 

 

(4)

 

 

(4)

 

 

(10)

 

(Provision for)/ recovery of loan loss reserve

 

 

(192)

 

 

60

 

 

(125)

 

Net increase (decrease) in mortgage loans receivable

 

$

19,032

 

$

(5,894)

 

$

12,272

 

 

Scheduled principal payments on mortgage loan receivables

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

 

 

 

 

 

 

    

Scheduled

 

 

 

Principal

 

2019

 

$

1,065

 

2020

 

 

8,815

 

2021

 

 

1,175

 

2022

 

 

1,175

 

2023

 

 

1,175

 

Thereafter

 

 

231,981

 

Total

 

$

245,386

 

 

Schedule of early mortgage loan payoffs

The following table summarizes our early mortgage loan payoffs during the years 2018, 2017 and 2016 (dollar amounts in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early

 

Number

 

 

 

 

 

 

Principal

 

of

 

 

 

 

 

 

Payoff

 

Loans

 

State

 

2018

 

$

1,086

 
1

 

UT

 

2017

 

$

10,795

 
4

 

AZ/MO/TX

 

2016

 

$

6,036

 
9

 

MO/TX/WA