Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2014

Summary of investments in owned properties

The following table summarizes our investment in owned properties at December 31, 2014 (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
Skilled Nursing	$	482,036	50.8	%	68	8,407	—	$	57.34
Assisted Living		401,517	42.3	%	84	—	4,176	$	96.15
Range of Care		43,907	4.6	%	7	634	274	$	48.36
Under Development(2)		11,495	1.2	%	—	—	—		—
Other(3)		10,883	1.1	%	1	—	—		—
Totals	$	949,838	100.0	%	160	9,041	4,450

⁽¹⁾

We have investments in 26 states leased to 30 different operators.

⁽²⁾

Includes two MC developments with a total of 126 units.

Includes a school and five parcels of land held-for-use.

Schedule of completed development, improvement and construction projects

During the twelve months ended December 31, 2014, we completed the following development and improvement projects (dollar amounts in thousands):


	Number		Number
	of	Type of	of
Type of Project	Properties	Property	Beds/Units	State	2014 Funding			Total Funding
Development	1	ALF	60	Colorado	$	6,351		$	9,689	(1)
Development	1	ALF	80	Texas		2,300			5,691	(2)
Development	1	SNF	143	Kentucky		10,579			20,904	(3)
Development	1	ALF	48	Colorado		7,257			8,744	(4)
Expansion/Renovation	1	ALF	72	Colorado		6,371			6,376
Expansion/Renovation	2	ALF	123	Colorado		5,091			5,095
Improvements	1	SNF	120	Florida		500			500
Improvements	2	SNF	235	New Mexico		319			1,746
	10		881		$	38,768	(5)	$	58,745	(5)

⁽¹⁾

Completed a memory care property in August 2014. The total funded amount includes acquired land of $1,200.

⁽²⁾

Completed a memory care property in October 2014. The total funded amount includes acquired land of $1,000.

⁽³⁾

Completed in October 2014 and total funded amount includes acquired land of $2,050.

⁽⁴⁾

Completed a memory care property in December 2014. The total funded amount includes acquired land of $850.

⁽⁵⁾

In 2014, we funded $500 to purchase Texas Medicaid bed rights for a 122-bed skilled nursing property under an existing lease. Additionally, during 2014, we funded the final commitment balance of $551 on a newly developed 77-unit assisted living property in Kansas which opened in 2013. In January 2015, we funded an additional $4,711 under these completed projects.

During the twelve months ended December 31, 2013, we completed the following construction projects (dollar amounts in thousands):


		Number
Completed		of
Date	Type of Property	Beds/Units	State	2013 Funding		Total Funding

Jul 2013	Assisted Living(1)	60	Colorado	$	4,316	$	9,850
Jul 2013	Skilled Nursing(2)	120	Texas		5,065		8,635
Oct 2013	Assisted Living	77	Kansas		8,081		9,675	(3)
	Totals	257		$	17,462	$	28,160

⁽¹⁾

Represents a memory care property. The funded amount includes acquired land of $1,882.

⁽²⁾

This new property replaces a skilled nursing property in our existing portfolio. The old skilled nursing property was closed upon completion of the replacement property and subsequently sold in 2014, as previously discussed.

⁽³⁾

The funded amount includes acquired land of $730. In 2014, we funded an additional $551 and completed this commitment.

Schedule of investment commitments

The following table summarizes our investment commitments as of December 31, 2014 and amounts funded on our open development and improvement projects (excludes capitalized interest, dollar amounts in thousands):


											Number	Number
	Investment		2014			Commitment		Remaining			of	of
Type of Property	Commitment		Funding(2)			Funded		Commitment			Properties	Beds/Units
Skilled Nursing	$	2,200	$	1,156		$	2,161	$	39		2	141
Assisted Living(1)		27,751		8,831			11,268		16,483		26	1,194
Totals	$	29,951	$	9,987	(3)	$	13,429	$	16,522	(3)	28	1,335

⁽¹⁾

Includes the development of a 66-unit memory care property for a commitment of $12,248, as previously discussed, a 60-unit memory care property for a total commitment of $10,703 and the improvement of 24 assisted living properties for a total investment commitment of $4,800.

⁽²⁾

Excludes funding for completed development and improvement projects discussed above and includes $1,400 of land acquired for the development of a 66-unit memory care property, as previously discussed, and the reclass of a pre‑development loan with a balance of $304. See Note 7. Notes Receivable for further discussion of the pre‑development loans.

In January 2015, we funded $731 under investment commitments. Accordingly, we have a remaining commitment of $15,791. Additionally, in January 2015, we amended an existing master lease with an operator to provide a commitment not to exceed $600 for the purpose of making capital improvements at a 196-skilled nursing property in Texas. Upon the capital improvement deadline of June 30, 2015 or final funding of the capital improvement commitment, the minimum rent will increase by the product of 9% and the total capital improvement funded.

Schedule of development, redevelopment, renovation, and expansion activity

Our construction in progress (or CIP) activity during the year ended December 31, 2014 for our development, redevelopment, renovation, and expansion projects is as follows (dollar amounts in thousands):


		CIP								CIP
		Balance at				Capitalized		Conversions		Balance at
Properties	Projects	12/31/2013		Funded(1)		Interest		out of CIP		12/31/2014
Development projects:
Assisted living	6	$	6,334	$	23,149	$	769	$	(21,581)	$	8,671
Skilled nursing	1		5,893		10,579		505		(16,977)		—
Subtotal	7		12,227		33,728		1,274		(38,558)		8,671
Redevelopment, renovation and expansion projects:
Assisted living	3		8		11,463		232		(11,703)		—
Skilled nursing	5		2,433		1,661		—		(4,094)		—
Subtotal	8		2,441		13,124		232		(15,797)		—
Total	15	$	14,668	$	46,852	$	1,506	$	(54,355)	$	8,671

Excludes $1,554 of capital improvement commitment funding which was capitalized directly into building and improvements and includes the reclass of a pre‑development loan with a total balance of $304 See Note 7. Notes Receivable for further discussion of pre‑development loans.

Summary of acquisitions

The following table summarizes our acquisitions during 2012 (dollar amounts in thousands):


					Total		Number	Number
	Purchase		Transaction		Acquisition		of	of
Type of Property	Price		Costs		Costs		Properties	Beds/Units
Skilled Nursing(1)	$	79,100	$	275	$	79,375	4	522
Assisted Living(2)		81,987		285		82,272	5	266
Land(3)		5,663		207		5,870	—	—
Totals	$	166,750	$	767	$	167,517	9	788

⁽¹⁾

Includes two skilled nursing properties with a total of 234 beds located in Texas and two skilled nursing properties with a total of 288 beds located in Ohio.

⁽²⁾

Includes two properties with a total of 100 units located in Colorado and three properties with a total of 166 units located in New Jersey.

We purchased four vacant parcels of land in the following states: Colorado, Kansas Kentucky and Texas. Simultaneous with the purchase, we entered into lease agreements and development commitments in an amount not to exceed $49,702 to fund the construction of a memory care property with 60 units and two assisted living properties with a total of 158 units and one skilled nursing property with 143 beds. These construction projects were subsequently completed in 2014 and 2013.

Schedule of future minimum base rents receivable

Major Operators, and excluding the effects of straight‑line rent and renewal options are as follows (in thousands):


	Annual Cash
	Rent
2015	$	98,150
2016		102,113
2017		101,009
2018		97,955
2019		92,658
Thereafter		445,768

Schedule of components of the income from discontinued operations

Set forth in the table below are the components of the income from discontinued operations (in thousands):


	For the year ended
	December 31,
	2014		2013		2012
Rental income	$	—	$	1,123	$	1,551
Total revenues		—		1,123		1,551
Depreciation and amortization		—		(317)		(540)
General and administrative expenses		—		(1)		(6)
Total expenses		—		(318)		(546)
Income from discontinued operations	$	—	$	805	$	1,005

Summary of investments in mortgage loans secured by first mortgages

The following table summarizes our investments in mortgage loans secured by first mortgages at December 31, 2014 (dollar amounts in thousands):


			Percentage		Number	Number	Number of		Investment
	Gross		of		of	of	SNF	ALF	per
Type of Property	Investments		Investments		Loans	Properties(1)	Beds	Units	Bed/Unit
Skilled Nursing(2)	$	151,016	90.3	%	15	29	3,650	—	$	41.37
Assisted Living		14,003	8.3	%	3	8	—	270	$	51.86
Range of Care		2,310	1.4	%	1	1	99	74	$	13.35
Totals	$	167,329	100.0	%	19	38	3,749	344

⁽¹⁾

We have investments in 9 states that include mortgages to 12 different operators.

In January 2015, we received $2,285 plus accrued interest for the payoff of a mortgage loan secured by one range of care property.

Scheduled of principal payments on mortgage loan receivables

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


	Scheduled
	Principal
2015	$	4,642
2016		7,527
2017		7,308
2018		8,425
2019		5,137
Thereafter		134,290
Total	$	167,329