XML 31 R20.htm IDEA: XBRL DOCUMENT

Real Estate Investments (Tables)

6 Months Ended

Jun. 30, 2021

Summary of investments in owned properties

The following table summarizes our investments in owned properties at June 30, 2021 (dollar amounts in thousands):


								Average
			Percentage		Number	Number of		Investment
	Gross		of		of	SNF	ALF	per
Type of Property	Investment		Investment		Properties ⁽¹⁾	Beds	Units	Bed/Unit
Assisted Living	$	840,502	59.5	%	102	—	5,799	$	144.94
Skilled Nursing		560,467	39.7	%	51	6,277	212	$	86.37
Other ⁽²⁾		11,360	0.8	%	1	118	—		—
Total	$	1,412,329	100.0	%	154	6,395	6,011

(1)	We own properties in 27 states that are leased to 31 different operators.

(2)	Includes three parcels of land held-for-use, and one behavioral health care hospital.

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 receivable, amortization of lease incentives and renewal options are as follows (in thousands):


	Cash
	Rent ⁽¹⁾
July-December 2021	$	62,347
2022		132,240
2023		117,928
2024		119,292
2025		102,843
Thereafter		412,942

(1)	Represents contractual cash rent, except for certain master leases which are based on estimated cash payments and the Senior Lifestyle Corporation master lease.

Summary of components of our rental income

The following table summarizes components of our rental income for the three and six months ended June 30, 2021 and 2020 (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
Rental Income		2021			2020			2021			2020
Base cash rental income	$	26,410	⁽¹⁾	$	33,336		$	55,033	⁽¹⁾	$	66,351
Variable cash rental income		3,529	⁽²⁾		4,155	⁽²⁾		7,067	⁽²⁾		8,437	⁽²⁾
Straight-line rent		(19)	⁽³⁾		634	⁽³⁾		663	⁽³⁾		1,473	⁽³⁾
Adjustment for collectability of rental income and lease incentives		—			(17,742)	⁽⁴⁾		(758)	⁽⁴⁾		(17,742)	⁽⁴⁾
Amortization of lease incentives		(116)			(108)			(228)			(209)
Total	$	29,804		$	20,275		$	61,777		$	58,310

(1)

Decreased primarily due to non-payment of rent collected from Senior Lifestyle Corporation (“Senior Lifestyle”), Senior Care Centers, LLC (“Senior Care”) and Abri Health Services, LLC (“Abri Health”) unpaid lease obligations and abated and deferred rent partially offset by increased rent from completion of development projects and contractual rent increases.

(2)

The variable rental income for the three and six months ended June 30, 2021, includes reimbursement of real estate taxes by our lessees of $3,529 and $7,067, respectively. The variable rental income for the three and six months ended June 30, 2020 includes contingent rental income of $44 and $104, respectively and reimbursement of real estate taxes by our lessees of $4,111 and $8,333, respectively.

(3)	Decreased due to more leases accounted for on a cash basis and normal amortization.

(4)	Represents straight-line rent receivable and lease incentives write-offs.

Summary of information about purchase options included in our lease agreements

Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements (dollar amount in thousands):


	Type	Number
	of	of		Gross		Carrying	Option
State	Property	Properties		Investments		Value	Window
California	ALF/MC	2	$	38,895	$	35,130	2024-2029
California	ALF	2		31,577		17,323	2021-TBD	⁽¹⁾
Colorado	ALF	1		6,764		5,418	2022-2026
Florida	MC	1		15,173		13,153	2028-2029
Kentucky and Ohio	MC	2		30,342		26,918	2028-2029
Texas	MC	2		25,265		23,405	2021-2027
South Carolina	ALF/MC	1		11,680		9,922	2028-2029
Total			$	159,696	$	131,269

(1)	The option window ending date will be either 24 months or 48 months after the option window commences, based on certain contingencies.

Summary of acquisitions

Acquisitions and Developments: The following table summarizes our acquisitions for the six months ended June 30, 2021 and 2020 (dollar amounts in thousands):


						Total		Number	Number
		Purchase		Transaction		Acquisition		of	of
Year	Type of Property	Price		Costs		Costs		Properties	Beds/Units
2021	n/a	$	—	$	—	$	—	—	—

2020	Skilled Nursing ⁽¹⁾	$	13,500	$	81	$	13,581	1	140

(1)	We acquired a SNF located in Texas.

Schedule of development and improvement projects

During the six months ended June 30, 2021 and 2020, we invested the following in development and improvement projects (in thousands):


	Six Months Ended June 30,
	2021				2020
Type of Property	Developments		Improvements		Developments		Improvements
Assisted Living Communities	$	—	$	2,046	$	4,487	$	3,039
Skilled Nursing Centers		—		—		5,861		14
Total	$	—	$	2,046	$	10,348	$	3,053

Schedule of completed developments

Completed Developments. We had no completed developments during the six months ended June 30, 2021. The following table summarized our completed developments during the six months ended June 30, 2020 (dollar amounts in thousands):

Number

Type

Number

Total

Year

Type of Project

Properties

Property

Beds/Units

State

Investment

2020

Development

ALF/MC

Oregon

18,443

Schedule of property sold

Properties Sold. The following table summarizes property sales during the six months ended June 30, 2021 and 2020 (dollar amounts in thousands):


		Type		Number	Number
		of		of	of		Sales		Carrying		Net
Year	State ⁽¹⁾	Properties		Properties	Beds/Units		Price		Value		(Loss) gain⁽²⁾
2021	n/a	n/a		—	—	$	—	$	—	$	159	^{(3) (4)}
	Florida	ALF		1	—		2,000		2,625		(858)
	Nebraska	ALF		1	40		900		1,079		(205)
	Wisconsin	ALF		3	263		35,000		28,295		5,594
Total 2021				5	303	$	37,900	$	31,999	$	4,690

2020	n/a	n/a		—	—	$	—	$	—	$	102	^{(3) (4)}
	Arizona	SNF		1	194		12,550		2,229		10,292
	Colorado	SNF		3	275		15,000		4,271		10,364
	Iowa	SNF	⁽⁴⁾	7	544		14,500		4,886		9,005
	Kansas	SNF		3	250		9,750		7,438		1,993
	Texas	SNF		7	1,148		23,000		10,260		12,287
Total 2020				21	2,411	$	74,800	$	29,084	$	44,043

(

(1)	Subsequent to June 30, 2021, we sold a 123-bed SNF in Washington for $7,700. We received proceeds of $7,200 and expect to recognize a gain on sale of $2,600.

(2)	Calculation of net (loss) gain includes cost of sales.

(3)	We recognized additional gain due to the reassessment adjustment of the holdbacks related to properties sold during 2019 and 2020, under the expected value model per ASC Topic 606, Contracts with Customers (“ASC 606”).

(4)

One of the transactions includes a holdback of $838 which is held in an interest-bearing account with an escrow holder on behalf of the buyer for potential specific losses. During 2020, we received $150 of the holdback. The remaining holdback expires in March 2022. Using the expected value model per ASC 606, we estimated and recorded the holdback value of $471 at closing.

Summary of properties held-for-sale

Properties held-for-sale. The following table summarizes our properties held-for-sale at June 30, 2021 and December 31, 2020 (dollar amounts in thousands):


		Type	Number	Number
		of	of	of		Gross		Accumulated
	State	Property	Properties	Beds/units		Investment		Depreciation
2021 ⁽¹⁾	WA	SNF	1	123	$	8,024	$	3,512

2020	n/a	n/a	—	—	$	—	$	—

(1)	Subsequent to June 30, 2021, we sold this SNF for $7,700. We received proceeds of $7,200 and expect to recognize a gain on sale of $2,600.

Summary of investments in mortgage loans secured by first mortgages

Mortgage Loans. The following table summarizes our investments in mortgage loans secured by first mortgages at June 30, 2021 (dollar amounts in thousands):


				Type	Percentage		Number of			Investment
		Gross		of	of				SNF	per
Interest Rate ⁽¹⁾	Maturity	Investment		Property	Investment		Loans ⁽²⁾	Properties ⁽³⁾	Beds	Bed/Unit
10.1%	2043	$	185,861	SNF	71.6	%	1	15	1,887	$	98.50
9.3%	2045		39,130	SNF	15.1	%	1	4	501	$	78.10
9.6%	2045		19,750	SNF	7.6	%	1	2	205	$	96.34
9.6%	2045		14,900	SNF	5.7	%	1	1	146	$	102.05
Total		$	259,641		100.0	%	4	22	2,739	$	94.79

(1)	The majority of the mortgage loans provide for annual increases in the interest rate after a certain time period increasing by 2.25%.

(2)	Some loans contain certain guarantees, provide for certain facility fees and the majority of the mortgage loans have a 30-year term.

(3)	The properties securing these mortgage loans are located in one state and are operated by one operator.

Schedule of mortgage loan activity

The following table summarizes our mortgage loan activity for the six months ended June 30, 2021 and 2020 (in thousands):


	Six Months Ended June 30,
	2021		2020
Originations and funding under mortgage loans receivable	$	426	$	2,557
Scheduled principal payments received		(625)		(565)
Mortgage loan premium amortization		(3)		(2)
Provision for loan loss reserve		2		(20)
Net (decrease) increase in mortgage loans receivable	$	(200)	$	1,970