Real Estate Investments (Tables)

3 Months Ended

Mar. 31, 2016

Summary of investments in owned properties

The following table summarizes our investments in owned properties at March 31, 2016 (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
Assisted Living	$	582,362	47.4	%	96	—	5,205	$	111.89
Skilled Nursing		540,240	43.9	%	71	8,781	—	$	61.52
Range of Care		43,907	3.6	%	7	634	274	$	48.36
Under Development(2)		43,761	3.6	%	—	—	—		—
Other(3)		19,486	1.5	%	2	118	—		—
Totals	$	1,229,756	100.0	%	176	9,533	5,479

⁽¹⁾

We own properties in 28 states that are leased to 29 different operators.

⁽²⁾

Represents six development projects consisting of four MC communities with a total of 254 units, a 108-unit independent living community and an 89-unit combination ALF and MC community.

⁽³⁾

Includes one school, three parcels of land held-for-use, and one behavioral health care hospital. The behavioral health care hospital has two skilled nursing beds and 116 medical hospital beds which represents a $78.39 investment per bed.

Summary of investments acquired

The following table summarizes our investment for the three months ended March 31, 2016 (dollar amounts in thousands):

Total

Number

Purchase

Transaction

Acquisition

Type of Property

Price

Costs(1)

Costs

Properties

Beds/Units

Skilled Nursing(2)

16,000

16,040

126

⁽¹⁾

Represents cost associated with our acquisition; 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 construction in progress. Additionally, transaction costs in the table above may differ from the acquisition costs included in the general and administrative expenses line item in our consolidated statements of income ($90) due to the timing and recognition of costs associated with pending, completed and terminated transactions.

⁽²⁾

We acquired a newly constructed 126-bed skilled nursing center in Texas. The property was added to an existing master lease agreement at an incremental rate of 8.5%.

Schedule of completed development, improvement and construction projects

The following table summarizes the development project completed during the three months ended March 31, 2016 and total amounts funded under the development project (dollar amounts in thousands):

Number

Type of

Type of Project

Properties

Property

Beds/Units

State

Total Funding

Development

ALF

Illinois

11,808

Schedule of commitments

At March 31, 2016, we had commitments as follows (in thousands):


						Total
	Investment			2016		Commitment		Remaining
	Commitment			Funding		Funded		Commitment
Real estate properties (See Note 2)	$	98,402	(1)	$	14,001	$	47,124	$	51,278
Accrued incentives and earn-out liabilities		16,300			299		1,104		15,196
Lease incentives		3,952			191		646		3,306
Mortgage loans (See Note 2)		46,990	(1)		1,099		11,362		35,628
Joint venture investments (See Note 3)		25,650			—		20,143		5,507
Notes receivable (See Note 4)		2,600			93		376		2,224
Totals	$	193,894		$	15,683	$	80,755	$	113,139

⁽¹⁾

Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand senior housing and health care properties.

Schedule of development, redevelopment, renovation, and expansion activity

Our construction in progress (or CIP) activity during the three months ended March 31, 2016 for our development, redevelopment, renovation, and expansion projects is as follows (dollar amounts in thousands):


	CIP								CIP
	Balance at				Capitalized		Conversions		Balance at
Type of Property	12/31/2015		Funded(1)		Interest		out of CIP		3/31/2016
Skilled nursing	$	1,252	$	2,117	$	—	$	(13)	$	3,356
Assisted living		30,713		13,409		686		(10,352)		34,456
Total	$	31,965	$	15,526	$	686	$	(10,365)	$	37,812

⁽¹⁾

Excludes $1,165 of funding directly capitalized into building.

Summary of investments in mortgage loans secured by first mortgages

The following table summarizes our investments in mortgage loans secured by first mortgages at March 31, 2016 (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(2)	Units(2)	Bed/Unit
Skilled Nursing	$	210,423	93.4	%	13	28	3,676	—	$	57.24
Assisted Living		13,667	6.1	%	3	8	—	270	$	50.62
Other(3)		1,209	0.5	%	1	—	—	—		—
Totals	$	225,299	100.0	%	17	36	3,676	270

⁽¹⁾

We have investments in properties located in eight states that include mortgages to 11 different operators.

⁽²⁾

See Item 2. Properties for discussion of bed/unit count.

⁽³⁾

Includes a parcel of land secured under a short-term mortgage loan.

Schedule of additional loan commitments and amounts funded under the mortgage loans

A summary of our mortgage loan funding for the three months ended March 31, 2016 and 2015 is as follows (in thousands):


	Three months ended March 31,
	2016 Funding		2015 Funding
Skilled Nursing Centers	$	6,599	$	11,358

Development and Improvement Projects

Schedule of commitments

A summary of our funding for development and improvement projects for the three months ended March 31, 2016 and 2015 is as follows (in thousands):


	Three months ended March 31, 2016				Three months ended March 31, 2015
			Expansion,				Expansion,
			Renovation and				Renovation and
	Development		Improvements		Development		Improvements
Assisted Living Communities	$	13,439	$	1,135	$	3,278	$	3,093
Skilled Nursing Centers		—		2,118		1,763		1,835
	$	13,439	$	3,253	$	5,041	$	4,928