Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events

Subsequent Events

12. Subsequent Events

Subsequent to June 30, 2021 the following events occurred:

Real Estate Investments: We sold a skilled nursing center in Washington for $7,700,000. We received net proceeds of approximately $7,200,000 and expect to recognize a gain on sale for this disposition. Also, we transitioned an assisted living community in Wisconsin, previously leased to Senior Lifestyle, to a regionally based operator new to our portfolio. The lease has a 10-year term with three 5-year renewal terms. Cash rent under the new lease is $920,000 in the first lease year, $1,200,000 in the second lease year, $1,300,000 in the third lease year, escalating 2% annually thereafter. Additionally, we entered into the following two lease agreements covering a total of six communities in the Senior Lifestyle portfolio:

● three assisted living communities to an existing operator. Two properties are located in Pennsylvania, and one in New Jersey. The lease has a 2-year term with zero cash rent for the first three months then cash rent will be based on mutually agreed fair market rent.

● three assisted living communities in Nebraska to an existing operator. The lease has a 2-year term with zero cash rent for the first three months then cash rent will be based on mutually agreed fair market rent.

Debt: We had a net borrowing of $19,000,000 under our unsecured revolving line of credit. Accordingly, we have $84,900,000 outstanding and $515,100,000 available for borrowing under our unsecured revolving line of credit at July 29, 2021. Additionally, we paid $25,160,000 in regular principal payments under our senior unsecured notes. Accordingly, we have $527,399,000 under our senior unsecured notes, net of debt issue costs, at July 29, 2021.

Equity: We declared a monthly cash dividend of $0.19 per share on our common stock for the months of July, August and September 2021, payable on July 30, August 31, and September 30, 2021, respectively to stockholders of record on July 22, August 23, and September 22, 2021, respectively.