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Subsequent Events
 3 Months Ended
Mar. 31, 2022
Subsequent Events  
Subsequent Events

12.

Subsequent Events

Subsequent to March 31, 2022 the following events occurred:

Real Estate Investments: We acquired four skilled nursing centers for $51,534,000. The properties, which are located in Texas, have a combined total of 339 beds primarily in private rooms and will be operated by an existing operator under a 10-year lease with two 5-year renewal options. Additionally, the lease provides either an earn-out payment or purchase option but not both. If neither option is elected within the timeframe defined in the lease, both elections are terminated. The earn-out payment is available, contingent on achieving certain thresholds per the lease, beginning at the end of the second lease year through the end of the fifth lease year. The purchase option is available beginning at the end of the fifth lease year through the end of the seventh lease year. The initial cash yield is 8% for the first year, increasing to 8.25% for the second year, then increases annually by 2.0% to 4.0% based on the change in the Medicare Market Basket Rate. In conjunction with the transaction, we provided the lessee a working

capital loan for up to $2,000,000, of which $1,867,000 has been funded, at the same yields and maturity as the lease.

Real Estate Dispositions: We sold a 74-unit assisted living community in Virginia for $16,895,000. The community had a gross book value of $16,895,000 and a book value of $15,549,000 at March 31, 2022. We anticipate recognizing a gain on sale of approximately $1,300,000 in the second quarter of 2022. In connection with the sale, the current operator paid us a lease termination fee of approximately $1,200,000.

Debt: We borrowed $52,000,000 and repaid $18,000,000 under our revolving line of credit. Accordingly, we have $191,900,000 outstanding and $208,100,000 available for borrowing under our revolving line of credit.

Equity: We declared a monthly cash dividend of $0.19 per share on our common stock for the months of April, May and June 2022, payable on April 29, May 31, and June 30, 2022, respectively to stockholders of record on April 21, May 23, and June 22, 2022, respectively.