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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2014
Commitments and Contingencies  
Commitments and Contingencies

6.                                    Commitments and Contingencies

 

As part of an acquisition in 2011, we committed to provide a contingent payment if certain operational thresholds are met.  The contingent payment was recorded at fair value, which was estimated using a discounted cash flow analysis, and we were accreting the contingent liability to the settlement amount as of the payment date. During the third quarter of 2013, we paid $7,000,000 related to the contingent liability. Accordingly, we have no remaining contingent liability as of March 31, 2014. During the three months ended March 31, 2013, we recorded non-cash interest expense of $110,000 related to the contingent liability.

 

At March 31, 2014, we had outstanding commitments totaling $80,806,000 to develop, re-develop, renovate or expand senior housing and long-term health care properties.  As of March 31, 2014, we have funded $36,535,000 under these commitments and we have a remaining commitment of $44,271,000. In April 2014, we funded $2,438,000 under investment commitments. Accordingly, we have a remaining commitment of $41,833,000. We also have a commitment to provide, under certain conditions, up to $5,000,000 per year through December 2014 to an existing operator for expansion of the 37 properties they lease from us.   See Note 2. Real Estate Investments for further discussion of these commitments.

 

Additionally at March 31, 2014, we had a $10,600,000 mortgage and construction commitment. As of March 31, 2014, we funded $10,159,000 under this commitment and we have a remaining commitment of $441,000. We have also committed to provide an existing borrower an additional $12,000,000 for capital improvements and additional loan proceeds of up to $40,000,000, under certain conditions and based on certain operating metrics and valuation thresholds. At March 31, 2014, no amounts have been funded under these commitments. In April 2014, we funded $344,000 in capital improvements.  Accordingly, we have $11,656,000 remaining under this capital improvement commitment.

 

At March 31, 2014, we committed to provide $2,750,000 in loans and line of credit agreements. As of March 31, 2014, we had funded $595,000 under these commitments and we have a remaining commitment of $2,155,000. See Note 3. Notes Receivable for further discussion of these commitments.