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Real Estate Investments (Tables)
 12 Months Ended
Dec. 31, 2016
Real Estate Investments  
Summary of acquisitions

Acquisitions and Developments. The following table summarizes our acquisitions for the twelve months ended December 31, 2016 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Total

    

Number

    

Number

 

 

Purchase

 

Transaction

 

Acquisition

 

of

 

of

Type of Property

 

Price

 

Costs(1)

 

Costs

 

Properties

 

Beds/Units

Skilled Nursing(2)

 

$
16,000

 

$
45

 

$
16,045

 
1

 
126

Assisted Living(3)

 

 
53,550

 

 
423

 

 
53,973

 
4

 
250

Land(4)

 

 
6,891

 

 
108

 

 
6,999

 

 —

 

 —

Totals

 

$
76,441

 

$
576

 

$
77,017

 
5

 
376

(1)

Represents cost associated with our acquisitions; 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 our construction in progress. Additionally, transaction costs may include costs related to the prior year due to timing and may include costs related to terminated transactions.

 

(2)

We acquired a newly constructed 126-bed skilled nursing center in Texas.

 

(3)

We acquired a newly constructed memory care community in Kentucky for $14,250 which includes a $2,000 holdback, a newly constructed assisted living and memory care community in Georgia for $14,300 and two memory care communities in Kansas for an aggregate purchase price of $25,000.

 

(4)

We acquired a parcel of land and improvement and entered into a development commitment of up to $24,325, including the land and bed rights purchase, for the development of a 143-bed skilled nursing center in Kentucky. Also, we purchased a parcel of land in Illinois and entered into a development commitment to construct a memory care community. The commitment totals approximately $14,500, including the land purchase.

The following table summarizes our acquisitions for the twelve months ended December 31, 2015 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Total

    

Number

    

Number

 

 

Purchase

 

Transaction

 

Acquisition

 

of

 

of

Type of Property

 

Price

 

Costs(1)

 

Costs

 

Properties

 

Beds/Units

Skilled Nursing(2)

 

$
36,946

 

$
87

 

$
37,033

 
3

 
360

Assisted Living(3)

 

 
156,097

 

 
590

 

 
156,687

 
11

 
951

Other(4)

 

 
9,250

 

 
42

 

 
9,292

 
1

 
118

Land(5)

 

 
16,333

 

 
352

 

 
16,685

 

 —

 

 —

Totals

 

$
218,626

 

$
1,071

 

$
219,697

 
15

 
1,429

(1)

Represents cost associated with our acquisitions; 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 our construction in progress. Additionally, transaction costs may include costs related to the prior year due to timing and may include costs related to terminated transactions.

 

(2)

We purchased a property in Wisconsin by exercising our purchase option under a $10,600 mortgage and construction loan and equipped the property for $3,346. Also, we acquired two skilled nursing centers in Texas totaling 254 beds for an aggregate purchase price of $23,000. 

 

(3)

Includes acquisition of a newly constructed 60-unit MC community for $14,250 including a $2,000 working capital reserve which was recorded similarly to an earn-out and valued at $1,847 using a discounted cash flow analysis. As a result, our basis in the property was recorded at $14,132 which includes capitalized transaction costs. Also includes acquisition of a portfolio comprised of 10 independent, assisted living and memory care communities for $142,000. 

 

 

(4)

We purchased a behavioral health care hospital in Nevada comprised of 116 medical hospital beds and 2 skilled nursing beds for $9,300.  

 

(5)

We acquired five parcels of land and entered into development commitments up to an aggregate total of $70,298, including the land purchases, for the development of three MC communities totaling 198 units, a 108-unit IL community and an 89-unit combination AL and MC community. We also purchased a parcel of land we previously leased pursuant to a ground lease. Additionally, we acquired land and existing improvements on a 56-unit MC community and entered a development commitment up to a total of $13,524, including the land purchase, to complete the development of the MC community.
Schedule of investment in development and improvement projects

The following table summarizes our investment in development and improvement projects for the years ended December 31, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2016

 

Year ended December 31, 2015

 

    

Development

    

Improvements

    

Development

    

Improvements

ALF/ILF/MC

 

$
41,859

 

$
3,034

 

$
24,099

 

$
3,950

SNF

 

 
483

 

 
3,758

 

 
1,830

 

 
3,584

 

 

$
42,342

 

$
6,792

 

$
25,929

 

$
7,534

 

Schedule of completed development, improvement and construction projects

During the twelve months ended December 31, 2016, 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

 

2016 Funding

 

Total Funding

 

Development

 

1

 

MC

 

66

 

Illinois

 

$
2,980

 

$
12,248

 

Development

 

1

 

MC

 

56

 

Texas

 

 
1,110

 

 
11,776

 

Development

 

1

 

MC

 

66

 

Illinois

 

 
7,331

 

 
11,962

 

Development

 

1

 

MC

 

66

 

California

 

 
7,716

 

 
12,400

 

Development

 

1

 

ALF/MC

 

89

 

South Carolina

 

 
9,170

 

 
15,080

 

Development

 

1

 

ILF

 

108

 

Kansas

 

 
11,235

 

 
13,423

 

Improvement

 

1

 

SNF

 

160

 

Arizona

 

 
3,432

 

 
4,672

 

 

 

7

 

 

 

611

 

 

 

$
42,974

 

$
81,561

 

 

The following table summarizes our completed projects during the twelve months ended December 31, 2015 (dollar amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Number

    

 

    

Number

    

 

    

 

 

    

 

 

 

 

 

of

 

Type of

 

of

 

 

 

 

 

 

 

 

 

Type of Project

 

Properties

 

Property

 

Beds/Units

 

State

 

2015 Funding

 

Total Funding

 

Development

 

1

 

MC

 

60

 

Colorado

 

$
1,522

 

$
10,703

 

Improvements

 

1

 

SNF

 

121

 

California

 

 
1,481

 

 
1,481

 

Improvements

 

1

 

SNF

 

196

 

Texas

 

 
522

 

 
522

 

Improvements

 

2

 

SNF

 

141

 

Tennessee

 

 
39

 

 
2,200

 

 

 

5

 

 

 

518

 

 

 

$
3,564

 

$
14,906

 

 

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

 

2017

 

$
133,296

 

2018

 

 
133,873

 

2019

 

 
129,482

 

2020

 

 
131,377

 

2021

 

 
117,298

 

Thereafter

 

 
797,716

 

 

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

The following table summarizes our mortgage loan activity for the twelve months ended December 31, 2016 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

    

2016

    

2015

 

Origination/Funding 

 

$
20,685

 

$
67,134

 

Pay-offs

 

 
6,036

 

 
2,487

 

Scheduled principal payments received

 

 
2,242

 

 
2,321

 

 

Scheduled of principal payments on mortgage loan receivables

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

 

 

 

 

 

 

    

Scheduled

 

 

 

Principal

 

2017

 

$
7,674

 

2018

 

 
8,297

 

2019

 

 
5,092

 

2020

 

 
8,815

 

2021

 

 
1,065

 

Thereafter

 

 
201,173

 

Total

 

$
232,116