x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2017 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Maryland | 47-2887436 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
18191 Von Karman Avenue, Suite 300, Irvine, California | 92612 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | o | |
Non-accelerated filer | x | Smaller reporting company | o | |
Emerging growth company | x |
Page | |
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Real estate investments, net | $ | 318,942,000 | $ | 117,942,000 | |||
Cash and cash equivalents | 4,397,000 | 2,237,000 | |||||
Accounts and other receivables, net | 1,359,000 | 1,299,000 | |||||
Restricted cash | 16,000 | — | |||||
Real estate deposits | 5,021,000 | 200,000 | |||||
Identified intangible assets, net | 37,635,000 | 19,673,000 | |||||
Other assets, net | 4,142,000 | 1,407,000 | |||||
Total assets | $ | 371,512,000 | $ | 142,758,000 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Mortgage loans payable, net(1) | $ | 11,639,000 | $ | 3,965,000 | |||
Line of Credit(1) | 26,000,000 | 33,900,000 | |||||
Accounts payable and accrued liabilities(1) | 17,053,000 | 5,426,000 | |||||
Accounts payable due to affiliates(1) | 8,065,000 | 5,531,000 | |||||
Identified intangible liabilities, net | 1,822,000 | 1,063,000 | |||||
Security deposits, prepaid rent and other liabilities(1) | 786,000 | 616,000 | |||||
Total liabilities | 65,365,000 | 50,501,000 | |||||
Commitments and contingencies (Note 9) | |||||||
Redeemable noncontrolling interest (Note 10) | 2,000 | 2,000 | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding | — | — | |||||
Class T common stock, $0.01 par value per share; 900,000,000 shares authorized; 34,346,388 and 11,000,433 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 343,000 | 110,000 | |||||
Class I common stock, $0.01 par value per share; 100,000,000 shares authorized; 1,884,007 and 377,006 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 19,000 | 4,000 | |||||
Additional paid-in capital | 322,549,000 | 99,492,000 | |||||
Accumulated deficit | (16,766,000 | ) | (7,351,000 | ) | |||
Total stockholders’ equity | 306,145,000 | 92,255,000 | |||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ | 371,512,000 | $ | 142,758,000 |
(1) | Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of September 30, 2017 and December 31, 2016 represented liabilities of Griffin-American Healthcare REIT IV Holdings, LP, a variable interest entity and consolidated subsidiary of Griffin-American Healthcare REIT IV, Inc. The creditors of Griffin-American Healthcare REIT IV Holdings, LP do not have recourse against Griffin-American Healthcare REIT IV, Inc., except for the Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $26,000,000 and $33,900,000 as of September 30, 2017 and December 31, 2016, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Real estate revenue | $ | 8,488,000 | $ | 312,000 | $ | 18,738,000 | $ | 338,000 | |||||||
Expenses: | |||||||||||||||
Rental expenses | 2,095,000 | 98,000 | 4,893,000 | 121,000 | |||||||||||
General and administrative | 1,296,000 | 329,000 | 2,996,000 | 725,000 | |||||||||||
Acquisition related expenses | 121,000 | 1,857,000 | 334,000 | 2,227,000 | |||||||||||
Depreciation and amortization | 3,442,000 | 64,000 | 7,619,000 | 64,000 | |||||||||||
Total expenses | 6,954,000 | 2,348,000 | 15,842,000 | 3,137,000 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense (including amortization of deferred financing costs and debt premium) | (780,000 | ) | (56,000 | ) | (1,607,000 | ) | (56,000 | ) | |||||||
Interest income | — | — | 1,000 | — | |||||||||||
Net income (loss) | 754,000 | (2,092,000 | ) | 1,290,000 | (2,855,000 | ) | |||||||||
Less: net income (loss) attributable to redeemable noncontrolling interest | — | — | — | — | |||||||||||
Net income (loss) attributable to controlling interest | $ | 754,000 | $ | (2,092,000 | ) | $ | 1,290,000 | $ | (2,855,000 | ) | |||||
Net income (loss) per Class T and Class I common share attributable to controlling interest — basic and diluted | $ | 0.02 | $ | (0.62 | ) | $ | 0.05 | $ | (2.12 | ) | |||||
Weighted average number of Class T and Class I common shares outstanding — basic and diluted | 32,593,321 | 3,357,979 | 23,827,175 | 1,345,578 | |||||||||||
Distributions declared per Class T and Class I common share | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.25 |
Class T and Class I Common Stock | ||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||
BALANCE — December 31, 2016 | 11,377,439 | $ | 114,000 | $ | 99,492,000 | $ | (7,351,000 | ) | $ | 92,255,000 | ||||||||
Issuance of common stock | 24,264,521 | 242,000 | 241,193,000 | — | 241,435,000 | |||||||||||||
Offering costs — common stock | — | — | (23,544,000 | ) | — | (23,544,000 | ) | |||||||||||
Issuance of common stock under the DRIP | 584,318 | 6,000 | 5,486,000 | — | 5,492,000 | |||||||||||||
Issuance of vested and nonvested restricted common stock | 22,500 | — | 45,000 | — | 45,000 | |||||||||||||
Amortization of nonvested common stock compensation | — | — | 55,000 | — | 55,000 | |||||||||||||
Repurchase of common stock | (18,383 | ) | — | (178,000 | ) | — | (178,000 | ) | ||||||||||
Distributions declared | — | — | — | (10,705,000 | ) | (10,705,000 | ) | |||||||||||
Net income | — | — | — | 1,290,000 | 1,290,000 | |||||||||||||
BALANCE — September 30, 2017 | 36,230,395 | $ | 362,000 | $ | 322,549,000 | $ | (16,766,000 | ) | $ | 306,145,000 |
Stockholders’ Equity | ||||||||||||||||||||||||||
Class T and Class I Common Stock | ||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||
BALANCE — December 31, 2015 | 20,833 | $ | — | $ | 200,000 | $ | — | $ | 200,000 | $ | 2,000 | $ | 202,000 | |||||||||||||
Issuance of common stock | 5,374,861 | 54,000 | 53,449,000 | — | 53,503,000 | — | 53,503,000 | |||||||||||||||||||
Offering costs — common stock | — | — | (7,584,000 | ) | — | (7,584,000 | ) | — | (7,584,000 | ) | ||||||||||||||||
Issuance of common stock under the DRIP | 23,379 | — | 222,000 | — | 222,000 | — | 222,000 | |||||||||||||||||||
Issuance of vested and nonvested restricted common stock | 15,000 | — | 30,000 | — | 30,000 | — | 30,000 | |||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 36,000 | — | 36,000 | — | 36,000 | |||||||||||||||||||
Reclassification of noncontrolling interest to mezzanine equity | — | — | — | — | — | (2,000 | ) | (2,000 | ) | |||||||||||||||||
Distributions declared | — | — | — | (598,000 | ) | (598,000 | ) | — | (598,000 | ) | ||||||||||||||||
Net loss | — | — | — | (2,855,000 | ) | (2,855,000 | ) | — | (2,855,000 | ) | ||||||||||||||||
BALANCE — September 30, 2016 | 5,434,073 | $ | 54,000 | $ | 46,353,000 | $ | (3,453,000 | ) | $ | 42,954,000 | $ | — | $ | 42,954,000 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | 1,290,000 | $ | (2,855,000 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 7,619,000 | 64,000 | |||||
Other amortization (including deferred financing costs, above/below-market leases, leasehold interests, above-market leasehold interests and debt premium) | 251,000 | 27,000 | |||||
Deferred rent | (1,124,000 | ) | (33,000 | ) | |||
Stock based compensation | 100,000 | 66,000 | |||||
Share discounts | 3,000 | 49,000 | |||||
Bad debt expense | 94,000 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts and other receivables | (362,000 | ) | (80,000 | ) | |||
Other assets | (305,000 | ) | (105,000 | ) | |||
Accounts payable and accrued liabilities | 1,394,000 | 449,000 | |||||
Accounts payable due to affiliates | 169,000 | 33,000 | |||||
Security deposits, prepaid rent and other liabilities | (280,000 | ) | (6,000 | ) | |||
Net cash provided by (used in) operating activities | 8,849,000 | (2,391,000 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Acquisition of real estate investments | (215,738,000 | ) | (55,619,000 | ) | |||
Capital expenditures | (845,000 | ) | (18,000 | ) | |||
Restricted cash | (16,000 | ) | — | ||||
Real estate deposits | (4,821,000 | ) | (1,000,000 | ) | |||
Pre-acquisition expenses | (698,000 | ) | — | ||||
Net cash used in investing activities | (222,118,000 | ) | (56,637,000 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Payments on mortgage loan payable | (189,000 | ) | (19,000 | ) | |||
Borrowings under the Line of Credit | 192,600,000 | 12,000,000 | |||||
Payments on the Line of Credit | (200,500,000 | ) | — | ||||
Proceeds from issuance of common stock | 241,647,000 | 52,484,000 | |||||
Deferred financing costs | (175,000 | ) | (1,027,000 | ) | |||
Repurchase of common stock | (178,000 | ) | — | ||||
Payment of offering costs | (13,673,000 | ) | (1,889,000 | ) | |||
Security deposits | (97,000 | ) | — | ||||
Distributions paid | (4,006,000 | ) | (148,000 | ) | |||
Net cash provided by financing activities | 215,429,000 | 61,401,000 | |||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 2,160,000 | 2,373,000 | |||||
CASH AND CASH EQUIVALENTS — Beginning of period | 2,237,000 | 202,000 | |||||
CASH AND CASH EQUIVALENTS — End of period | $ | 4,397,000 | $ | 2,575,000 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid for: | |||||||
Interest | $ | 1,356,000 | $ | 1,000 | |||
Income taxes | $ | 7,000 | $ | — |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES | |||||||
Investing Activities: | |||||||
Accrued capital expenditures | $ | 931,000 | $ | — | |||
Accrued pre-acquisition expenses | $ | 601,000 | $ | — | |||
The following represents the increase in certain assets and liabilities in connection with our acquisitions of real estate investments: | |||||||
Other assets | $ | 213,000 | $ | 144,000 | |||
Mortgage loans payable | $ | 8,000,000 | $ | 3,968,000 | |||
Accounts payable and accrued liabilities | $ | 803,000 | $ | 75,000 | |||
Security deposits and prepaid rent | $ | 545,000 | $ | 106,000 | |||
Financing Activities: | |||||||
Issuance of common stock under the DRIP | $ | 5,492,000 | $ | 222,000 | |||
Distributions declared but not paid | $ | 1,739,000 | $ | 228,000 | |||
Accrued Contingent Advisor Payment | $ | 7,759,000 | $ | 3,802,000 | |||
Accrued stockholder servicing fee | $ | 11,496,000 | $ | 1,847,000 | |||
Reclassification of noncontrolling interest to mezzanine equity | $ | — | $ | 2,000 | |||
Accrued deferred financing costs | $ | 22,000 | $ | 72,000 | |||
Receivable from transfer agent | $ | 807,000 | $ | 926,000 |
September 30, 2017 | December 31, 2016 | ||||||
Building and improvements | $ | 285,481,000 | $ | 106,442,000 | |||
Land | 39,386,000 | 12,322,000 | |||||
324,867,000 | 118,764,000 | ||||||
Less: accumulated depreciation | (5,925,000 | ) | (822,000 | ) | |||
$ | 318,942,000 | $ | 117,942,000 |
Acquisition(1) | Location | Type | Date Acquired | Contract Purchase Price | Mortgage Loan Payable(2) | Line of Credit(3) | Total Acquisition Fee(4) | |||||||||||||||
Battle Creek MOB | Battle Creek, MI | Medical Office | 03/10/17 | $ | 7,300,000 | $ | — | $ | — | $ | 328,000 | |||||||||||
Reno MOB | Reno, NV | Medical Office | 03/13/17 | 66,250,000 | — | 60,000,000 | 2,982,000 | |||||||||||||||
Athens MOB Portfolio | Athens, GA | Medical Office | 05/18/17 | 16,800,000 | — | 7,800,000 | 756,000 | |||||||||||||||
SW Illinois Senior Housing Portfolio | Columbia, Millstadt, Red Bud and Waterloo, IL | Senior Housing | 05/22/17 | 31,800,000 | — | 31,700,000 | 1,431,000 | |||||||||||||||
Lawrenceville MOB | Lawrenceville, GA | Medical Office | 06/12/17 | 11,275,000 | 8,000,000 | 3,000,000 | 507,000 | |||||||||||||||
Northern California Senior Housing Portfolio | Belmont, Fairfield, Menlo Park and Sacramento, CA | Senior Housing | 06/28/17 | 45,800,000 | — | 21,600,000 | 2,061,000 | |||||||||||||||
Roseburg MOB | Roseburg, OR | Medical Office | 06/29/17 | 23,200,000 | — | 23,000,000 | 1,044,000 | |||||||||||||||
Fairfield County MOB Portfolio | Stratford and Trumbull, CT | Medical Office | 09/29/17 | 15,395,000 | — | 15,500,000 | 693,000 | |||||||||||||||
Total | $ | 217,820,000 | $ | 8,000,000 | $ | 162,600,000 | $ | 9,802,000 |
(1) | We own 100% of our properties acquired in 2017. |
(2) | Represents the principal balance of the mortgage loan payable assumed by us at the time of acquisition. |
(3) | Represents a borrowing under the Line of Credit, as defined in Note 7, Line of Credit, at the time of acquisition. |
(4) | Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, a base acquisition fee of 2.25% of the aggregate contract purchase price upon the closing of the acquisition. In addition, the total acquisition fee includes a Contingent Advisor Payment, as defined in Note 12, Related Party Transactions, in the amount of 2.25% of the aggregate contract purchase price of the property acquired, which shall be paid by us to our advisor, subject to the satisfaction of certain conditions. See Note 12, Related Party Transactions — Acquisition and Development Stage — Acquisition Fee, for a further discussion. |
2017 Acquisitions | ||||
Building and improvements | $ | 177,270,000 | ||
Land | 27,064,000 | |||
In-place leases | 20,518,000 | |||
Above-market leases | 127,000 | |||
Total assets acquired | 224,979,000 | |||
Mortgage loan payable | (8,000,000 | ) | ||
Below-market leases | (571,000 | ) | ||
Above-market leasehold interests | (395,000 | ) | ||
Total liabilities assumed | (8,966,000 | ) | ||
Net assets acquired | $ | 216,013,000 |
September 30, 2017 | December 31, 2016 | ||||||
In-place leases, net of accumulated amortization of $2,936,000 and $430,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 9.3 years and 8.1 years as of September 30, 2017 and December 31, 2016, respectively) | $ | 30,517,000 | $ | 12,504,000 | |||
Leasehold interests, net of accumulated amortization of $95,000 and $22,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 70.8 years and 71.5 years as of September 30, 2017 and December 31, 2016, respectively) | 6,317,000 | 6,390,000 | |||||
Above-market leases, net of accumulated amortization of $135,000 and $31,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 5.8 years and 6.3 years as of September 30, 2017 and December 31, 2016, respectively) | 801,000 | 779,000 | |||||
$ | 37,635,000 | $ | 19,673,000 |
Year | Amount | |||
2017 | $ | 1,310,000 | ||
2018 | 4,863,000 | |||
2019 | 4,400,000 | |||
2020 | 3,862,000 | |||
2021 | 3,466,000 | |||
Thereafter | 19,734,000 | |||
$ | 37,635,000 |
September 30, 2017 | December 31, 2016 | ||||||
Prepaid expenses and deposits | $ | 1,968,000 | $ | 257,000 | |||
Deferred rent receivables | 1,330,000 | 207,000 | |||||
Deferred financing costs, net of accumulated amortization of $379,000 and $112,000 as of September 30, 2017 and December 31, 2016, respectively(1) | 710,000 | 943,000 | |||||
Lease commissions, net of accumulated amortization of $3,000 and $0 as of September 30, 2017 and December 31, 2016, respectively | 134,000 | — | |||||
$ | 4,142,000 | $ | 1,407,000 |
(1) | In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, or ASU 2015-03, and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, or ASU 2015-15, deferred financing costs only include costs related to the Line of Credit, as defined in Note 7, Line of Credit. |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Beginning balance | $ | 3,965,000 | $ | — | |||
Additions: | |||||||
Assumptions of mortgage loans payable | 8,000,000 | 3,968,000 | |||||
Amortization of deferred financing costs(1) | 23,000 | — | |||||
Deductions: | |||||||
Deferred financing costs(1) | (151,000 | ) | (102,000 | ) | |||
Scheduled principal payments on mortgage loan payable | (189,000 | ) | (19,000 | ) | |||
Amortization of premium on mortgage loan payable | (9,000 | ) | — | ||||
Ending balance | $ | 11,639,000 | $ | 3,847,000 |
(1) | In accordance with ASU 2015-03 and ASU 2015-15, deferred financing costs only include costs related to our mortgage loans payable. |
Year | Amount | |||
2017 | $ | 84,000 | ||
2018 | 386,000 | |||
2019 | 407,000 | |||
2020 | 8,035,000 | |||
2021 | 314,000 | |||
Thereafter | 2,492,000 | |||
$ | 11,718,000 |
September 30, 2017 | December 31, 2016 | ||||||
Below-market leases, net of accumulated amortization of $263,000 and $60,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 6.6 years and 5.4 years as of September 30, 2017 and December 31, 2016, respectively) | $ | 1,431,000 | $ | 1,063,000 | |||
Above-market leasehold interests, net of accumulated amortization of $4,000 and $0 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 52.4 years and 0 years as of September 30, 2017 and December 31, 2016, respectively) | 391,000 | — | |||||
$ | 1,822,000 | $ | 1,063,000 |
Year | Amount | |||
2017 | $ | 85,000 | ||
2018 | 338,000 | |||
2019 | 310,000 | |||
2020 | 147,000 | |||
2021 | 125,000 | |||
Thereafter | 817,000 | |||
$ | 1,822,000 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Beginning balance | $ | 2,000 | $ | — | ||||
Reclassification from equity | — | 2,000 | ||||||
Net income (loss) attributable to redeemable noncontrolling interest | — | — | ||||||
Ending balance | $ | 2,000 | $ | 2,000 |
Number of Nonvested Shares of Our Restricted Common Stock | Weighted Average Grant Date Fair Value | |||||
Balance — December 31, 2016 | 12,000 | $ | 10.00 | |||
Granted | 22,500 | $ | 10.00 | |||
Vested | (7,500 | ) | $ | 10.00 | ||
Forfeited | — | $ | — | |||
Balance — September 30, 2017 | 27,000 | $ | 10.00 | |||
Expected to vest — September 30, 2017 | 27,000 | $ | 10.00 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||
Officer’s Name | Title | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | |||||||||||||||||||||
Jeffrey T. Hanson | Chief Executive Officer and Chairman of the Board of Directors | $ | 70,000 | 7,553 | $ | 64,000 | 6,653 | $ | 193,000 | 20,910 | $ | 115,000 | 11,936 | |||||||||||||||||
Danny Prosky | President and Chief Operating Officer | 72,000 | 7,825 | 72,000 | 7,463 | 199,000 | 21,571 | 133,000 | 13,810 | |||||||||||||||||||||
Mathieu B. Streiff | Executive Vice President and General Counsel | 67,000 | 7,293 | 69,000 | 7,194 | 194,000 | 21,065 | 127,000 | 13,259 | |||||||||||||||||||||
Stefan K.L. Oh | Executive Vice President of Acquisitions | 8,000 | 857 | 8,000 | 875 | 24,000 | 2,558 | 15,000 | 1,605 | |||||||||||||||||||||
Christopher M. Belford | Vice President of Asset Management | 6,000 | 653 | 6,000 | 642 | 59,000 | 6,361 | 11,000 | 1,194 | |||||||||||||||||||||
Wendie Newman | Vice President of Asset Management | 2,000 | 221 | — | — | 6,000 | 607 | — | — | |||||||||||||||||||||
$ | 225,000 | 24,402 | $ | 219,000 | 22,827 | $ | 675,000 | 73,072 | $ | 401,000 | 41,804 |
Fee | September 30, 2017 | December 31, 2016 | ||||||
Contingent Advisor Payment | $ | 7,759,000 | $ | 5,404,000 | ||||
Asset management fees | 237,000 | 83,000 | ||||||
Property management fees | 37,000 | 24,000 | ||||||
Operating expenses | 22,000 | 20,000 | ||||||
Lease commissions | 10,000 | — | ||||||
$ | 8,065,000 | $ | 5,531,000 |
Acquisition | Revenue | Net Income | ||||||
Auburn MOB | $ | 239,000 | $ | 74,000 | ||||
Pottsville MOB | $ | 42,000 | $ | 33,000 | ||||
Charlottesville MOB | $ | 47,000 | $ | 37,000 | ||||
Rochester Hills MOB | $ | 6,000 | $ | 4,000 | ||||
Cullman MOB III | $ | 4,000 | $ | 4,000 |
Auburn MOB | Pottsville MOB | Charlottesville MOB | Rochester Hills MOB | Cullman MOB III | |||||||||||||||
Building and improvements | $ | 4,600,000 | $ | 7,050,000 | $ | 13,330,000 | $ | 5,640,000 | $ | 13,989,000 | |||||||||
Land | 406,000 | 1,493,000 | 4,768,000 | 1,702,000 | — | ||||||||||||||
In-place leases | 386,000 | 740,000 | 2,030,000 | 1,073,000 | 1,249,000 | ||||||||||||||
Leasehold interests | — | — | — | — | 1,412,000 | ||||||||||||||
Total assets acquired | 5,392,000 | 9,283,000 | 20,128,000 | 8,415,000 | 16,650,000 | ||||||||||||||
Mortgage loan payable | — | — | — | 3,968,000 | — | ||||||||||||||
Below-market leases | — | 133,000 | — | 115,000 | — | ||||||||||||||
Total liabilities assumed | — | 133,000 | — | 4,083,000 | — | ||||||||||||||
Net assets acquired | $ | 5,392,000 | $ | 9,150,000 | $ | 20,128,000 | $ | 4,332,000 | $ | 16,650,000 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||
Revenue | $ | 1,632,000 | $ | 4,849,000 | |||
Net income | $ | 45,000 | $ | 536,000 | |||
Net income attributable to controlling interest | $ | 45,000 | $ | 536,000 | |||
Net income per Class T and Class I common share attributable to controlling interest — basic and diluted | $ | — | $ | 0.07 |
Medical Office Buildings | Senior Housing | Three Months Ended September 30, 2017 | ||||||||||
Revenue: | ||||||||||||
Real estate revenue | $ | 6,330,000 | $ | 2,158,000 | $ | 8,488,000 | ||||||
Expenses: | ||||||||||||
Rental expenses | 1,857,000 | 238,000 | 2,095,000 | |||||||||
Segment net operating income | $ | 4,473,000 | $ | 1,920,000 | $ | 6,393,000 | ||||||
Expenses: | ||||||||||||
General and administrative | $ | 1,296,000 | ||||||||||
Acquisition related expenses | 121,000 | |||||||||||
Depreciation and amortization | 3,442,000 | |||||||||||
Other income (expense): | ||||||||||||
Interest expense (including amortization of deferred financing costs and debt premium) | (780,000 | ) | ||||||||||
Net income | $ | 754,000 |
Medical Office Buildings | Senior Housing | Three Months Ended September 30, 2016 | ||||||||||
Revenue: | ||||||||||||
Real estate revenue | $ | 312,000 | $ | — | $ | 312,000 | ||||||
Expenses: | ||||||||||||
Rental expenses | 98,000 | — | 98,000 | |||||||||
Segment net operating income | $ | 214,000 | $ | — | $ | 214,000 | ||||||
Expenses: | ||||||||||||
General and administrative | $ | 329,000 | ||||||||||
Acquisition related expenses | 1,857,000 | |||||||||||
Depreciation and amortization | 64,000 | |||||||||||
Other income (expense): | ||||||||||||
Interest expense (including amortization of deferred financing costs) | (56,000 | ) | ||||||||||
Net loss | $ | (2,092,000 | ) |
Medical Office Buildings | Senior Housing | Nine Months Ended September 30, 2017 | ||||||||||
Revenue: | ||||||||||||
Real estate revenue | $ | 15,456,000 | $ | 3,282,000 | $ | 18,738,000 | ||||||
Expenses: | ||||||||||||
Rental expenses | 4,543,000 | 350,000 | 4,893,000 | |||||||||
Segment net operating income | $ | 10,913,000 | $ | 2,932,000 | $ | 13,845,000 | ||||||
Expenses: | ||||||||||||
General and administrative | $ | 2,996,000 | ||||||||||
Acquisition related expenses | 334,000 | |||||||||||
Depreciation and amortization | 7,619,000 | |||||||||||
Other income (expense): | ||||||||||||
Interest expense (including amortization of deferred financing costs and debt premium) | (1,607,000 | ) | ||||||||||
Interest income | 1,000 | |||||||||||
Net income | $ | 1,290,000 |
Medical Office Buildings | Senior Housing | Nine Months Ended September 30, 2016 | ||||||||||
Revenue: | ||||||||||||
Real estate revenue | $ | 338,000 | $ | — | $ | 338,000 | ||||||
Expenses: | ||||||||||||
Rental expenses | 121,000 | — | 121,000 | |||||||||
Segment net operating income | $ | 217,000 | $ | — | $ | 217,000 | ||||||
Expenses: | ||||||||||||
General and administrative | $ | 725,000 | ||||||||||
Acquisition related expenses | 2,227,000 | |||||||||||
Depreciation and amortization | 64,000 | |||||||||||
Other income (expense): | ||||||||||||
Interest expense (including amortization of deferred financing costs) | (56,000 | ) | ||||||||||
Net loss | $ | (2,855,000 | ) |
September 30, 2017 | December 31, 2016 | ||||||
Medical office buildings | $ | 263,970,000 | $ | 123,223,000 | |||
Senior housing | 98,836,000 | 16,758,000 | |||||
Other | 8,706,000 | 2,777,000 | |||||
Total assets | $ | 371,512,000 | $ | 142,758,000 |
Tenant | Annualized Base Rent(1) | Percentage of Annualized Base Rent | Acquisition | Reportable Segment | GLA (Sq Ft) | Lease Expiration Date | |||||||||
Colonial Oaks Master Tenant, LLC | $ | 4,108,000 | 15.1% | Lafayette Assisted Living Portfolio and Northern California Senior Housing Portfolio | Senior Housing | 215,000 | 06/30/32 | ||||||||
Prime Healthcare Services – Reno | $ | 3,817,000 | 14.0% | Reno MOB | Medical Office | 146,000 | Multiple |
(1) | Annualized base rent is based on contractual base rent from the leases in effect as of September 30, 2017. The loss of these tenants or their inability to pay rent could have a material adverse effect on our business and results of operations. |
Acquisition(1) | Location | Type | Date Acquired | Contract Purchase Price | Line of Credit(2) | Total Acquisition Fee(3) | ||||||||||||
Central Florida Senior Housing Portfolio | Bradenton, Brooksville, Lake Placid, Lakeland, Pinellas Park, Sanford, Spring Hill and Winter Haven, FL | Senior Housing — RIDEA | 11/01/17 | $ | 109,500,000 | $ | 112,000,000 | $ | 4,882,000 |
(1) | On November 1, 2017, we completed the acquisition of Central Florida Senior Housing Portfolio, pursuant to a joint venture with an affiliate of Meridian Senior Living, LLC, an unaffiliated third party. Our effective ownership of the joint venture is approximately 98.0%. |
(2) | Represents borrowings under the Line of Credit, as amended, at the time of acquisition. |
(3) | Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of Central Florida Senior Housing Portfolio, a base acquisition fee upon the closing of the acquisition of 2.25% of the portion of the aggregate contract purchase price paid by us. In addition, the total acquisition fee includes a Contingent Advisor Payment in the amount of 2.25% of the portion of the aggregate contract purchase price paid by us, which shall be paid by us to our advisor, subject to the satisfaction of certain conditions. See Note 12, Related Party Transactions — Acquisition and Development Stage — Acquisition Fee, for a further discussion. |
September 30, | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
Number of Buildings | Aggregate Contract Purchase Price | Leased % | Number of Buildings | Aggregate Contract Purchase Price | Leased % | ||||||||||||||
Medical office buildings | 18 | $ | 262,290,000 | 94.0 | % | 5 | $ | 59,670,000 | 100 | % | |||||||||
Senior housing | 12 | 94,350,000 | 100 | % | — | — | — | % | |||||||||||
Total/weighted average | 30 | $ | 356,640,000 | 95.7 | % | 5 | $ | 59,670,000 | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Medical office buildings | $ | 6,330,000 | $ | 312,000 | $ | 15,456,000 | $ | 338,000 | |||||||
Senior housing | 2,158,000 | — | 3,282,000 | — | |||||||||||
Total | $ | 8,488,000 | $ | 312,000 | $ | 18,738,000 | $ | 338,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Real estate taxes | $ | 651,000 | $ | 24,000 | $ | 1,278,000 | $ | 39,000 | |||||||
Utilities | 552,000 | 29,000 | 1,267,000 | 36,000 | |||||||||||
Building maintenance | 467,000 | 28,000 | 1,327,000 | 28,000 | |||||||||||
Property management fees — third party | 127,000 | 6,000 | 320,000 | 6,000 | |||||||||||
Property management fees — affiliates | 103,000 | 5,000 | 249,000 | 5,000 | |||||||||||
Administration | 91,000 | — | 212,000 | — | |||||||||||
Insurance | 23,000 | — | 56,000 | — | |||||||||||
Amortization of leasehold interests | 22,000 | — | 69,000 | — | |||||||||||
Other | 59,000 | 6,000 | 115,000 | 7,000 | |||||||||||
Total | $ | 2,095,000 | $ | 98,000 | $ | 4,893,000 | $ | 121,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
Medical office buildings | $ | 1,857,000 | 29.3 | % | $ | 98,000 | 31.4 | % | $ | 4,543,000 | 29.4 | % | $ | 121,000 | 35.8 | % | |||||||||||
Senior housing | 238,000 | 11.0 | % | — | — | % | 350,000 | 10.7 | % | — | — | % | |||||||||||||||
Total/weighted average | $ | 2,095,000 | 24.7 | % | $ | 98,000 | 31.4 | % | $ | 4,893,000 | 26.1 | % | $ | 121,000 | 35.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Asset management fees — affiliates | $ | 700,000 | $ | — | $ | 1,505,000 | $ | — | |||||||
Professional and legal fees | 310,000 | 141,000 | 646,000 | 260,000 | |||||||||||
Restricted stock compensation | 61,000 | 14,000 | 100,000 | 66,000 | |||||||||||
Transfer agent services | 57,000 | 40,000 | 141,000 | 42,000 | |||||||||||
Board of directors fees | 53,000 | 58,000 | 163,000 | 141,000 | |||||||||||
Directors’ and officers’ liability insurance | 53,000 | 59,000 | 161,000 | 147,000 | |||||||||||
Franchise taxes | 31,000 | — | 121,000 | — | |||||||||||
Bad debt expense | 25,000 | — | 94,000 | — | |||||||||||
Other | 6,000 | 17,000 | 65,000 | 69,000 | |||||||||||
Total | $ | 1,296,000 | $ | 329,000 | $ | 2,996,000 | $ | 725,000 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash and cash equivalents — beginning of period | $ | 2,237,000 | $ | 202,000 | |||
Net cash provided by (used in) operating activities | 8,849,000 | (2,391,000 | ) | ||||
Net cash used in investing activities | (222,118,000 | ) | (56,637,000 | ) | |||
Net cash provided by financing activities | 215,429,000 | 61,401,000 | |||||
Cash and cash equivalents — end of period | $ | 4,397,000 | $ | 2,575,000 |
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Distributions paid in cash | $ | 4,006,000 | $ | 148,000 | |||||||||
Distributions reinvested | 5,492,000 | 222,000 | |||||||||||
$ | 9,498,000 | $ | 370,000 | ||||||||||
Sources of distributions: | |||||||||||||
Cash flows from operations | $ | 8,849,000 | 93.2 | % | $ | — | — | % | |||||
Offering proceeds | 649,000 | 6.8 | 370,000 | 100 | |||||||||
$ | 9,498,000 | 100 | % | $ | 370,000 | 100 | % |
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Distributions paid in cash | $ | 4,006,000 | $ | 148,000 | |||||||||
Distributions reinvested | 5,492,000 | 222,000 | |||||||||||
$ | 9,498,000 | $ | 370,000 | ||||||||||
Sources of distributions: | |||||||||||||
FFO attributable to controlling interest | $ | 8,909,000 | 93.8 | % | $ | — | — | % | |||||
Offering proceeds | 589,000 | 6.2 | 370,000 | 100 | |||||||||
$ | 9,498,000 | 100 | % | $ | 370,000 | 100 | % |
Payments Due by Period | |||||||||||||||||||
2017 | 2018-2019 | 2020-2021 | Thereafter | Total | |||||||||||||||
Principal payments — fixed-rate debt | $ | 84,000 | $ | 793,000 | $ | 8,349,000 | $ | 2,492,000 | $ | 11,718,000 | |||||||||
Interest payments — fixed-rate debt | 145,000 | 1,117,000 | 421,000 | 455,000 | 2,138,000 | ||||||||||||||
Principal payments — variable-rate debt | — | 26,000,000 | — | — | 26,000,000 | ||||||||||||||
Interest payments — variable-rate debt (based on rates in effect as of September 30, 2017) | 243,000 | 1,621,000 | — | — | 1,864,000 | ||||||||||||||
Ground and other lease obligations | 24,000 | 491,000 | 492,000 | 11,466,000 | 12,473,000 | ||||||||||||||
Total | $ | 496,000 | $ | 30,022,000 | $ | 9,262,000 | $ | 14,413,000 | $ | 54,193,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 754,000 | $ | (2,092,000 | ) | $ | 1,290,000 | $ | (2,855,000 | ) | |||||
Add: | |||||||||||||||
Depreciation and amortization — consolidated properties | 3,442,000 | 64,000 | 7,619,000 | 64,000 | |||||||||||
Less: | |||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interest | — | — | — | — | |||||||||||
FFO attributable to controlling interest | $ | 4,196,000 | $ | (2,028,000 | ) | $ | 8,909,000 | $ | (2,791,000 | ) | |||||
Acquisition related expenses(1) | $ | 121,000 | $ | 1,857,000 | $ | 334,000 | $ | 2,227,000 | |||||||
Amortization of above- and below-market leases(2) | (30,000 | ) | (33,000 | ) | (99,000 | ) | (33,000 | ) | |||||||
Change in deferred rent receivables(3) | (569,000 | ) | — | (1,124,000 | ) | — | |||||||||
Adjustments for redeemable noncontrolling interest(4) | — | — | — | — | |||||||||||
MFFO attributable to controlling interest | $ | 3,718,000 | $ | (204,000 | ) | $ | 8,020,000 | $ | (597,000 | ) | |||||
Weighted average Class T and Class I common shares outstanding — basic and diluted | 32,593,321 | 3,357,979 | 23,827,175 | 1,345,578 | |||||||||||
Net income (loss) per Class T and Class I common share — basic and diluted | $ | 0.02 | $ | (0.62 | ) | $ | 0.05 | $ | (2.12 | ) | |||||
FFO attributable to controlling interest per Class T and Class I common share — basic and diluted | $ | 0.13 | $ | (0.60 | ) | $ | 0.37 | $ | (2.07 | ) | |||||
MFFO attributable to controlling interest per Class T and Class I common share — basic and diluted | $ | 0.11 | $ | (0.06 | ) | $ | 0.34 | $ | (0.44 | ) |
(1) | In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition related expenses, we believe MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or its affiliates and third parties. Certain acquisition related expenses under GAAP, such as expenses incurred in connection with property acquisitions accounted for as business combinations, are considered operating expenses and as expenses included in the determination of net income (loss), which is a performance measure under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. |
(2) | Under GAAP, above- and below-market leases are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate-related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, we believe that by excluding charges relating to the amortization of above- and below-market leases, MFFO may provide useful supplemental information on the performance of the real estate. |
(3) | Under GAAP, rental revenue or rental expense is recognized on a straight-line basis over the terms of the related lease (including rent holidays). This may result in income or expense recognition that is significantly different than the underlying contract terms. By adjusting for the change in deferred rent receivables, MFFO may provide useful supplemental information on the realized economic impact of lease terms, providing insight on the expected contractual cash flows of such lease terms, and aligns results with our analysis of operating performance. |
(4) | Includes all adjustments to eliminate the redeemable noncontrolling interest’s share of the adjustments described in notes (1) – (3) above to convert our FFO to MFFO. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 754,000 | $ | (2,092,000 | ) | $ | 1,290,000 | $ | (2,855,000 | ) | |||||
General and administrative | 1,296,000 | 329,000 | 2,996,000 | 725,000 | |||||||||||
Acquisition related expenses | 121,000 | 1,857,000 | 334,000 | 2,227,000 | |||||||||||
Depreciation and amortization | 3,442,000 | 64,000 | 7,619,000 | 64,000 | |||||||||||
Interest expense | 780,000 | 56,000 | 1,607,000 | 56,000 | |||||||||||
Interest income | — | — | (1,000 | ) | — | ||||||||||
Net operating income | $ | 6,393,000 | $ | 214,000 | $ | 13,845,000 | $ | 217,000 |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Fixed-rate debt — principal payments | $ | 84,000 | $ | 386,000 | $ | 407,000 | $ | 8,035,000 | $ | 314,000 | $ | 2,492,000 | $ | 11,718,000 | $ | 11,950,000 | |||||||||||||||
Weighted average interest rate on maturing fixed-rate debt | 5.14 | % | 5.10 | % | 5.10 | % | 4.79 | % | 5.25 | % | 5.25 | % | 4.92 | % | — | ||||||||||||||||
Variable-rate debt — principal payments | $ | — | $ | — | $ | 26,000,000 | $ | — | $ | — | $ | — | $ | 26,000,000 | $ | 25,998,000 | |||||||||||||||
Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of September 30, 2017) | — | % | — | % | 3.72 | % | — | % | — | % | — | % | 3.72 | % | — |
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Distributions paid in cash | $ | 4,006,000 | $ | 148,000 | |||||||||
Distributions reinvested | 5,492,000 | 222,000 | |||||||||||
$ | 9,498,000 | $ | 370,000 | ||||||||||
Sources of distributions: | |||||||||||||
Cash flows from operations | $ | 8,849,000 | 93.2 | % | $ | — | — | % | |||||
Offering proceeds | 649,000 | 6.8 | 370,000 | 100 | |||||||||
$ | 9,498,000 | 100 | % | $ | 370,000 | 100 | % |
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Distributions paid in cash | $ | 4,006,000 | $ | 148,000 | |||||||||
Distributions reinvested | 5,492,000 | 222,000 | |||||||||||
$ | 9,498,000 | $ | 370,000 | ||||||||||
Sources of distributions: | |||||||||||||
FFO attributable to controlling interest | $ | 8,909,000 | 93.8 | % | $ | — | — | % | |||||
Offering proceeds | 589,000 | 6.2 | 370,000 | 100 | |||||||||
$ | 9,498,000 | 100 | % | $ | 370,000 | 100 | % |
• | an obligation to refund amounts previously paid to us, our future tenants or our operators pursuant to the Medicare or Medicaid programs or from private payors, in amounts that could be material to our business; |
• | state or federal agencies imposing fines, penalties and other sanctions on us, our tenants or our operators; |
• | loss of our right, our tenants’ right or our operators’ right to participate in the Medicare or Medicaid programs or one or more private payor networks; |
• | an increase in private litigation against us, our tenants or our operators; and |
• | damage to our reputation in various markets. |
Amount | |||
Gross offering proceeds — Class T and Class I common stock | $ | 353,510,000 | |
Gross offering proceeds from Class T and Class I shares issued pursuant to the DRIP | 6,288,000 | ||
Total gross offering proceeds | 359,798,000 | ||
Less public offering expenses: | |||
Selling commissions | 9,807,000 | ||
Dealer manager fees | 10,380,000 | ||
Advisor funding of dealer manager fees | (6,963,000 | ) | |
Other organizational and offering expenses | 4,343,000 | ||
Advisor funding of other organizational and offering expenses | (4,343,000 | ) | |
Net proceeds from our offering | $ | 346,574,000 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased As Part of Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 1, 2017 to July 31, 2017 | — | $ | — | — | (1 | ) | |||||||
August 1, 2017 to August 31, 2017 | — | $ | — | — | (1 | ) | |||||||
September 1, 2017 to September 30, 2017 | 11,209 | $ | 9.69 | 11,209 | (1 | ) | |||||||
Total | 11,209 | $ | 9.69 | 11,209 |
(1) | Subject to funds being available, we will limit the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year; provided however, shares of our common stock subject to a repurchase requested upon the death of a stockholder will not be subject to this cap. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed herewith. |
** | Furnished herewith. In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
Griffin-American Healthcare REIT IV, Inc. (Registrant) | ||||||
November 9, 2017 | By: | /s/ JEFFREY T. HANSON | ||||
Date | Jeffrey T. Hanson | |||||
Chief Executive Officer and Chairman of the Board of Directors | ||||||
(Principal Executive Officer) | ||||||
November 9, 2017 | By: | /s/ BRIAN S. PEAY | ||||
Date | Brian S. Peay | |||||
Chief Financial Officer | ||||||
(Principal Financial Officer and Principal Accounting Officer) |
ARTICLE I DEFINED TERMS | 1 | |||
ARTICLE II PURCHASE AND SALE & PURCHASE PRICE | 1 | |||
2.1 | Purchase and Sale | 1 | ||
2.2 | Purchase Price | 2 | ||
2.3 | Escrow Provisions | 3 | ||
ARTICLE III PURCHASER DILIGENCE/PROPERTY CONTRACTS | 4 | |||
3.1 | Seller Deliveries | 4 | ||
ARTICLE IV DUE DILIGENCE; TITLE | 5 | |||
4.1 | Inspection of the Property | 5 | ||
4.2 | Title Documents | 7 | ||
4.3 | Permitted Exceptions | 7 | ||
4.4 | Existing Security Documents/Monetary Liens | 8 | ||
4.5 | Title Review and Objection; Subsequently Disclosed Exceptions | 8 | ||
4.6 | Occupancy Rates | 9 | ||
ARTICLE V CLOSING | 10 | |||
5.1 | Closing Date | 10 | ||
5.2 | Seller and Existing Operator Closing Deliveries | 10 | ||
5.3 | Purchaser Closing Deliveries | 12 | ||
5.4 | Originals; Document Delivery | 13 | ||
5.5 | Closing Prorations and Adjustments | 13 | ||
5.6 | Post-Closing Adjustments | 17 | ||
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER | 18 |
6.1 | Seller’s Representations | 18 | ||
6.2 | Representations and Warranties of Purchaser | 30 | ||
ARTICLE VII ADDITIONAL COVENANTS/AGREEMENTS OF SELLER AND PURCHASER | 32 | |||
7.1 | Interim Operations | 32 | ||
7.2 | Healthcare Approvals | 32 | ||
7.3 | Other Consents and Satisfaction of Conditions | 33 | ||
7.4 | Taxes. | 33 | ||
7.5 | MSA. | 34 | ||
7.6 | No Shop. | 34 | ||
7.7 | No Disposition of Property. | 34 | ||
7.8 | Financial Information. | 34 | ||
7.9 | Reserved. | 34 | ||
7.10 | Reserved. | 34 | ||
7.11 | Resident Records. | 34 | ||
7.12 | Recoupment Claims. | 35 | ||
7.13 | Surveys; Resolution of Audit Deficiencies; Cooperation. | 35 | ||
7.14 | Medicaid Provider Agreements. | 35 | ||
7.15 | Residents Rents; Accounts Receivable. | 36 | ||
7.16 | Reserved. | 37 | ||
7.17 | Reserved. | 37 | ||
7.18 | Pre-Closing Access. | 38 | ||
7.19 | Reserved. | 38 | ||
7.20 | Approvals and Consents. | 38 | ||
7.21 | Reserved. | 38 |
7.22 | Information Systems, Records in Electronic Form, Software and Data | 38 | ||
7.23 | Changes in Representations and Warranties. | 38 | ||
7.24 | Further Documentation. | 39 | ||
7.25 | Operations Transfer. | 39 | ||
ARTICLE VIII CONDITIONS PRECEDENT TO CLOSING | 39 | |||
8.1 | Purchaser’s Conditions to Closing | 39 | ||
8.2 | Seller’s Conditions to Closing | 41 | ||
ARTICLE IX INDEMNIFICATION & SURVIVAL PROVISIONS | 42 | |||
9.1 | Effective Date; Survival | 42 | ||
9.2 | Indemnification by Seller | 43 | ||
9.3 | Indemnification by Purchaser | 43 | ||
9.4 | Limitations on Indemnification | 44 | ||
9.5 | Indemnification Procedures | 44 | ||
9.6 | Tax Treatment | 47 | ||
9.7 | Exclusive Remedy | 47 | ||
9.8 | Manner of Payment | 48 | ||
9.9 | Brokerage | 48 | ||
ARTICLE X DEFAULT AND REMEDIES | 48 | |||
10.1 | Purchaser Default | 48 | ||
10.2 | Seller Default | 49 | ||
10.4 | Post-Closing Default | 50 | ||
ARTICLE XI CASUALTY; EMINENT DOMAIN | 50 | |||
11.1 | Damage | 50 | ||
11.2 | Closing | 51 | ||
11.3 | Repairs | 51 |
11.4 | Eminent Domain | 51 | ||
ARTICLE XII MISCELLANEOUS | 52 | |||
12.1 | Binding Effect of Agreement | 52 | ||
12.2 | Exhibits; Schedules; Annexes | 52 | ||
12.3 | Assignability | 52 | ||
12.4 | Captions | 52 | ||
12.5 | Number and Gender of Words | 52 | ||
12.6 | Notices | 52 | ||
12.7 | Governing Law and Venue | 54 | ||
12.8 | Entire Agreement | 54 | ||
12.9 | Amendments | 54 | ||
12.10 | Severability | 54 | ||
12.11 | Multiple Counterparts/Facsimile Signatures | 54 | ||
12.12 | Construction | 55 | ||
12.13 | Confidentiality/Press Releases | 55 | ||
12.14 | Time of the Essence | 56 | ||
12.15 | Waiver | 56 | ||
12.16 | Time Periods | 56 | ||
12.17 | No Personal Liability of Officers, Trustees or Directors | 56 | ||
12.18 | No Recording | 56 | ||
12.19 | Relationship of Parties | 56 | ||
12.20 | Reserved | 56 | ||
12.21 | Multiple Parties | 56 | ||
12.22 | WAIVER OF JURY TRIAL | 57 | ||
12.23 | Appointment of Seller’ Agent | 57 |
12.24 | Attorneys’ Fees | 58 | ||
12.3 | Reserved | 58 | ||
12.3 | Bulk Transfer Tax Clearance | 58 | ||
12.3 | Audit 58 |
Exhibit A | Legal Description |
Exhibit B | Form of Indemnity Escrow Agreement |
Exhibit C | Reserved |
Exhibit D | Form of Bill of Sale |
Exhibit E | Form of General Assignment and Assumption |
Exhibit F | Form of Assignment and Assumption of Resident Agreements |
Exhibit G | Form of Certification of Non-Foreign Status |
Exhibit H | Reserved |
Exhibit I | Form of Guaranty |
Exhibit J | Form of Resident Notification |
Exhibit K | Form of Access Agreement |
Exhibit L | Property Contracts List |
Exhibit M | Bring-Down Certificate |
Exhibit N | Assigned Contracts |
Exhibit O | Third-Party Reports |
Exhibit P | Management Agreements |
Exhibit Q | Other Seller Deliveries |
Exhibit R | Non-Compete Agreement |
Schedule I | Seller; Purchaser; Facility Names and Addresses |
Schedule II | Separate Facilities |
Schedule 5.6 | Current Assessed Values |
Schedule 6.1.3 | Condemnation; Proceedings |
Schedule 6.1.7(b) | Notices of Violations |
Schedule 6.1.8(b) | Leased Personal Property |
Schedule 6.1.8(k) | Commercial Leases |
Schedule 6.1.11 | Required Consents |
Schedule 6.1.12(a) | Permits and Operating Licenses |
Schedule 6.1.12(b) | Third Party Payor Programs |
Schedule 6.1.12(d) | Deficiencies or Violations |
Schedule 6.1.12(g) | Corporate Integrity Agreements |
Schedule 6.1.14 | Property Statements |
Schedule 6.1.15(a) | Regulated Quantities of Hazardous Substances |
Schedule 6.1.15(b) | Litigation Regarding Hazardous Substances |
Schedule 6.1.15(c) | Notices Regarding Hazardous Substances |
Schedule 6.1.15(d) | Noncompliance with Environmental Laws |
Schedule 6.1.15(e) | Discharge of Hazardous Substances |
Schedule 6.1.15(f) | Environmental Reports |
Schedule 6.1.15(h) | Underground Storage Tanks |
Schedule 6.1.24 | Licensed Beds |
Schedule 6.1.25 | Intellectual Property |
Schedule 6.1.29 | List of Insurance Policies |
Schedule 12.13-A | Form of Representations Letter |
Schedule 12.27-B | Form of Audit Letter |
Attachment 1.1 | Healthcare Approvals |
Annex 1 | Defined Terms |
To Purchaser: | c/o Griffin-American Healthcare REIT IV, Inc. 18191 Von Karman Avenue, Suite 300 Irvine, CA 92612 Attention: Brooks Barton Email: bbarton@ahinvestors.com |
with a copy to: | Arnall Golden Gregory LLP 171 17th Street, NW, Suite 2100 Atlanta, GA 30363 Attn.: Steven A. Kaye, Esq. Fax No.: 404-873-8101 Email: steven.kaye@agg.com |
To Seller and Existing Operator: | c/o Fortress Investment Group LLC 1345 Avenue of the Americas New York, New York 10105 Attn: Max Luce Facsimile: 917-639-9638 Email: mluce@fortress.com |
with a copy to: | c/o Fortress Investment Group LLC 1345 Avenue of the Americas New York, New York 10105 Attn: Ivy Hernandez Facsimile: 917-639-9638 Email: ihernandez@fortress.com |
with a copy to: | Williams Mullen 200 South 10th Street, Suite 1600 Richmond, Virginia 23219 Attention: Robert C. Dewar Email: rdewar@williamsmullen.com |
First American Title Insurance Company 777 South Figueroa Street, 4th Floor Los Angeles, CA 90017 Attention: Brian M. Serikaku Email: bmserikaku@firstam.com |
NIC 5 SPRING HAVEN OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 5 LAKE MORTON PLAZA OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 5 RENAISSANCE RETIREMENT OWNER | |
LLC, a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 5 FOREST OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 5 SPRING HAVEN LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 LAKE MORTON PLAZA LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 RENAISSANCE RETIREMENT LEASING | |
LLC, a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 FOREST OAKS LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
GAHC4 CENTRAL FL SENIOR HOUSING | |
PORTFOLIO, LLC, a Delaware limited liability | |
company | |
By: | /s/ Brian S. Peay |
Name: | Brian S. Peay |
Title | Authorized Signatory |
First American Title Insurance Company | |
By: | /s/ Brian M. Serikaku |
Name: | Brian M. Serikaku |
Title | Escrow Officer |
ARTICLE I DEFINED TERMS | 1 | |||
ARTICLE II PURCHASE AND SALE & PURCHASE PRICE | 1 | |||
2.1 | Purchase and Sale | 1 | ||
2.2 | Purchase Price | 2 | ||
2.3 | Escrow Provisions | 3 | ||
ARTICLE III PURCHASER DILIGENCE/PROPERTY CONTRACTS | 4 | |||
3.1 | Seller Deliveries | 4 | ||
ARTICLE IV DUE DILIGENCE; TITLE | 5 | |||
4.1 | Inspection of the Property | 5 | ||
4.2 | Title Documents | 7 | ||
4.3 | Permitted Exceptions | 7 | ||
4.4 | Existing Security Documents/Monetary Liens | 8 | ||
4.5 | Title Review and Objection; Subsequently Disclosed Exceptions | 8 | ||
4.6 | Occupancy Rates | 9 | ||
ARTICLE V CLOSING | 10 | |||
5.1 | Closing Date | 10 | ||
5.2 | Seller and Existing Operator Closing Deliveries | 10 | ||
5.3 | Purchaser Closing Deliveries | 12 | ||
5.4 | Originals; Document Delivery | 13 | ||
5.5 | Closing Prorations and Adjustments | 13 | ||
5.6 | Post-Closing Adjustments | 17 | ||
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER | 18 |
6.1 | Seller’s Representations | 18 | ||
6.2 | Representations and Warranties of Purchaser | 30 | ||
ARTICLE VII ADDITIONAL COVENANTS/AGREEMENTS OF SELLER AND PURCHASER | 32 | |||
7.1 | Interim Operations | 32 | ||
7.2 | Healthcare Approvals | 32 | ||
7.3 | Other Consents and Satisfaction of Conditions | 33 | ||
7.4 | Taxes. | 33 | ||
7.5 | MSA. | 33 | ||
7.6 | No Shop. | 34 | ||
7.7 | No Disposition of Property. | 34 | ||
7.8 | Financial Information. | 34 | ||
7.9 | Reserved. | 34 | ||
7.10 | Reserved. | 34 | ||
7.11 | Resident Records. | 34 | ||
7.12 | Recoupment Claims. | 35 | ||
7.13 | Surveys; Resolution of Audit Deficiencies; Cooperation. | 35 | ||
7.14 | Medicaid Provider Agreements. | 35 | ||
7.15 | Residents Rents; Accounts Receivable. | 36 | ||
7.16 | Reserved. | 37 | ||
7.17 | Reserved. | 37 | ||
7.18 | Pre-Closing Access. | 37 | ||
7.19 | Reserved. | 38 | ||
7.20 | Approvals and Consents. | 38 | ||
7.21 | Reserved. | 38 |
7.22 | Information Systems, Records in Electronic Form, Software and Data | 38 | ||
7.23 | Changes in Representations and Warranties. | 38 | ||
7.24 | Further Documentation. | 39 | ||
7.25 | Operations Transfer. | 39 | ||
ARTICLE VIII CONDITIONS PRECEDENT TO CLOSING | 39 | |||
8.1 | Purchaser’s Conditions to Closing | 39 | ||
8.2 | Seller’s Conditions to Closing | 41 | ||
ARTICLE IX INDEMNIFICATION & SURVIVAL PROVISIONS | 42 | |||
9.1 | Effective Date; Survival | 42 | ||
9.2 | Indemnification by Seller | 43 | ||
9.3 | Indemnification by Purchaser | 43 | ||
9.4 | Limitations on Indemnification | 44 | ||
9.5 | Indemnification Procedures | 44 | ||
9.6 | Tax Treatment | 47 | ||
9.7 | Exclusive Remedy | 47 | ||
9.8 | Manner of Payment | 48 | ||
9.9 | Brokerage | 48 | ||
ARTICLE X DEFAULT AND REMEDIES | 48 | |||
10.1 | Purchaser Default | 48 | ||
10.2 | Seller Default | 49 | ||
10.4 | Post-Closing Default | 50 | ||
ARTICLE XI CASUALTY; EMINENT DOMAIN | 50 | |||
11.1 | Damage | 50 | ||
11.2 | Closing | 51 | ||
11.3 | Repairs | 51 |
11.4 | Eminent Domain | 51 | ||
ARTICLE XII MISCELLANEOUS | 52 | |||
12.1 | Binding Effect of Agreement | 52 | ||
12.2 | Exhibits; Schedules; Annexes | 52 | ||
12.3 | Assignability | 52 | ||
12.4 | Captions | 52 | ||
12.5 | Number and Gender of Words | 52 | ||
12.6 | Notices | 52 | ||
12.7 | Governing Law and Venue | 54 | ||
12.8 | Entire Agreement | 54 | ||
12.9 | Amendments | 54 | ||
12.10 | Severability | 54 | ||
12.11 | Multiple Counterparts/Facsimile Signatures | 54 | ||
12.12 | Construction | 54 | ||
12.13 | Confidentiality/Press Releases | 55 | ||
12.14 | Time of the Essence | 56 | ||
12.15 | Waiver | 56 | ||
12.16 | Time Periods | 56 | ||
12.17 | No Personal Liability of Officers, Trustees or Directors | 56 | ||
12.18 | No Recording | 56 | ||
12.19 | Relationship of Parties | 56 | ||
12.20 | Reserved | 56 | ||
12.21 | Multiple Parties | 56 | ||
12.22 | WAIVER OF JURY TRIAL | 57 | ||
12.23 | Appointment of Seller’ Agent | 57 |
12.24 | Attorneys’ Fees | 58 | ||
12.3 | Reserved | 58 | ||
12.3 | Bulk Transfer Tax Clearance | 58 | ||
12.3 | Audit 58 |
Exhibit A | Legal Description |
Exhibit B | Form of Indemnity Escrow Agreement |
Exhibit C | Reserved |
Exhibit D | Form of Bill of Sale |
Exhibit E | Form of General Assignment and Assumption |
Exhibit F | Form of Assignment and Assumption of Resident Agreements |
Exhibit G | Form of Certification of Non-Foreign Status |
Exhibit H | Reserved |
Exhibit I | Form of Guaranty |
Exhibit J | Form of Resident Notification |
Exhibit K | Reserved |
Exhibit L | Property Contracts List |
Exhibit M | Bring-Down Certificate |
Exhibit N | Assigned Contracts |
Exhibit O | Third-Party Reports |
Exhibit P | Management Agreements |
Exhibit Q | Other Seller Deliveries |
Exhibit R | Non-Compete Agreement |
Schedule I | Seller; Purchaser; Facility Names and Addresses |
Schedule II | Separate Facilities |
Schedule 5.6 | Current Assessed Values |
Schedule 6.1.3 | Condemnation; Proceedings |
Schedule 6.1.7(b) | Notices of Violations |
Schedule 6.1.8(b) | Leased Personal Property |
Schedule 6.1.8(k) | Commercial Leases |
Schedule 6.1.11 | Required Consents |
Schedule 6.1.12(a) | Permits and Operating Licenses |
Schedule 6.1.12(b) | Third Party Payor Programs |
Schedule 6.1.12(d) | Deficiencies or Violations |
Schedule 6.1.12(g) | Corporate Integrity Agreements |
Schedule 6.1.14 | Property Statements |
Schedule 6.1.15(a) | Regulated Quantities of Hazardous Substances |
Schedule 6.1.15(b) | Litigation Regarding Hazardous Substances |
Schedule 6.1.15(c) | Notices Regarding Hazardous Substances |
Schedule 6.1.15(d) | Noncompliance with Environmental Laws |
Schedule 6.1.15(e) | Discharge of Hazardous Substances |
Schedule 6.1.15(f) | Environmental Reports |
Schedule 6.1.15(h) | Underground Storage Tanks |
Schedule 6.1.24 | Licensed Beds |
Schedule 6.1.25 | Intellectual Property |
Schedule 6.1.29 | List of Insurance Policies |
Schedule 12.13-A | Form of Representations Letter |
Schedule 12.27-B | Form of Audit Letter |
Attachment 1.1 | Healthcare Approvals |
Annex 1 | Defined Terms |
To Purchaser: | c/o Griffin-American Healthcare REIT IV, Inc. 18191 Von Karman Avenue, Suite 300 Irvine, CA 92612 Attention: Brooks Barton Email: bbarton@ahinvestors.com |
with a copy to: | Arnall Golden Gregory LLP 171 17th Street, NW, Suite 2100 Atlanta, GA 30363 Attn.: Steven A. Kaye, Esq. Fax No.: 404-873-8101 Email: steven.kaye@agg.com |
To Seller and Existing Operator: | c/o Fortress Investment Group LLC 1345 Avenue of the Americas New York, New York 10105 Attn: Max Luce Facsimile: 917-639-9638 Email: mluce@fortress.com |
with a copy to: | c/o Fortress Investment Group LLC 1345 Avenue of the Americas New York, New York 10105 Attn: Ivy Hernandez Facsimile: 917-639-9638 Email: ihernandez@fortress.com |
with a copy to: | Williams Mullen 200 South 10th Street, Suite 1600 Richmond, Virginia 23219 Attention: Robert C. Dewar Email: rdewar@williamsmullen.com |
First American Title Insurance Company 777 South Figueroa Street, 4th Floor Los Angeles, CA 90017 Attention: Brian M. Serikaku Email: bmserikaku@firstam.com |
NIC 4 BAYSIDE TERRACE OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 4 BALMORAL OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 4 BRADENTON OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 4 THE GRANDE OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 4 SPRING OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Jane Ryu |
Name: | Jane Ryu |
Title | Chief Executive Officer |
NIC 4 BAYSIDE TERRACE LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BALMORAL LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BRADENTON OAKS LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 THE GRANDE LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 SPRING OAKS LEASING LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
GAHC4 CENTRAL FL SENIOR HOUSING | |
PORTFOLIO, LLC, a Delaware limited liability | |
company | |
By: | /s/ Brian S. Peay |
Name: | Brian S. Peay |
Title | Authorized Signatory |
First American Title Insurance Company | |
By: | /s/ Brian M. Serikaku |
Name: | Brian M. Serikaku |
Title | Escrow Officer |
NIC 5 SPRING HAVEN OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 LAKE MORTON PLAZA OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 RENAISSANCE RETIREMENT OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 FOREST OAKS OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 SPRING HAVEN LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 LAKE MORTON PLAZA LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 RENAISSANCE RETIREMENT LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 FOREST OAKS LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC, | |
a Delaware limited liability company | |
By: | /s/ Stefan Oh |
Name: | Stefan Oh |
Title: | Executive Vice President, Acquisitions |
NIC 4 BAYSIDE TERRACE OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BALMORAL OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BRADENTON OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 THE GRANDE OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 SPRING OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BAYSIDE TERRACE LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BALMORAL LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BRADENTON OAKS LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 THE GRANDE LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 SPRING OAKS LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC, | |
a Delaware limited liability company | |
By: | /s/ Stefan Oh |
Name: | Stefan Oh |
Title: | Executive Vice President, Acquisitions |
NIC 5 SPRING HAVEN OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 LAKE MORTON PLAZA OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 RENAISSANCE RETIREMENT OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 FOREST OAKS OWNER, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 SPRING HAVEN LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 LAKE MORTON PLAZA LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 RENAISSANCE RETIREMENT LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 5 FOREST OAKS LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC, | |
a Delaware limited liability company | |
By: | /s/ Stefan Oh |
Name: | Stefan K.L. Oh |
Title: | Authorized Signatory |
NIC 4 BAYSIDE TERRACE OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BALMORAL OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BRADENTON OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 THE GRANDE OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 SPRING OAKS OWNER LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BAYSIDE TERRACE LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BALMORAL LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 BRADENTON OAKS LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 THE GRANDE LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
NIC 4 SPRING OAKS LEASING, LLC, | |
a Delaware limited liability company | |
By: | /s/ Ivy Hernandez |
Name: | Ivy Hernandez |
Title | Vice President |
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC, | |
a Delaware limited liability company | |
By: | /s/ Stefan Oh |
Name: | Stefan K.L. Oh |
Title: | Authorized Signatory |
November 9, 2017 | By: | /s/ JEFFREY T. HANSON | ||
Date | Jeffrey T. Hanson | |||
Chief Executive Officer and Chairman of the Board of Directors | ||||
(Principal Executive Officer) |
November 9, 2017 | By: | /s/ BRIAN S. PEAY | ||
Date | Brian S. Peay | |||
Chief Financial Officer | ||||
(Principal Financial Officer and Principal Accounting Officer) |
November 9, 2017 | By: | /s/ JEFFREY T. HANSON | ||
Date | Jeffrey T. Hanson | |||
Chief Executive Officer and Chairman of the Board of Directors | ||||
(Principal Executive Officer) |
November 9, 2017 | By: | /s/ BRIAN S. PEAY | ||
Date | Brian S. Peay | |||
Chief Financial Officer | ||||
(Principal Financial Officer and Principal Accounting Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Nov. 03, 2017 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | gahr4 | |
Entity Registrant Name | Griffin-American Healthcare REIT IV, Inc. | |
Entity Central Index Key | 0001632970 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Common Class T [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 36,675,850 | |
Common Class I [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,028,989 |
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
ASSETS | |||||
Real estate investments, net | $ 318,942,000 | $ 117,942,000 | |||
Cash and cash equivalents | 4,397,000 | 2,237,000 | |||
Accounts and other receivables, net | 1,359,000 | 1,299,000 | |||
Restricted cash | 16,000 | 0 | |||
Real estate deposits | 5,021,000 | 200,000 | |||
Identified intangible assets, net | 37,635,000 | 19,673,000 | |||
Other assets, net | 4,142,000 | 1,407,000 | |||
Total assets | 371,512,000 | 142,758,000 | |||
Liabilities: | |||||
Mortgage loans payable, net | [1] | 11,639,000 | 3,965,000 | ||
Line of Credit | [1] | 26,000,000 | 33,900,000 | ||
Accounts payable and accrued liabilities | [1] | 17,053,000 | 5,426,000 | ||
Accounts payable due to affiliates | [1] | 8,065,000 | 5,531,000 | ||
Identified intangible liabilities, net | 1,822,000 | 1,063,000 | |||
Security deposits, prepaid rent and other liabilities | [1] | 786,000 | 616,000 | ||
Total liabilities | 65,365,000 | 50,501,000 | |||
Commitments and contingencies (Note 9) | |||||
Redeemable noncontrolling interest (Note 10) | 2,000 | 2,000 | |||
Stockholders’ equity: | |||||
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding | 0 | 0 | |||
Additional paid-in capital | 322,549,000 | 99,492,000 | |||
Accumulated deficit | (16,766,000) | (7,351,000) | |||
Total stockholders’ equity | 306,145,000 | 92,255,000 | |||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 371,512,000 | 142,758,000 | |||
Common Class T [Member] | |||||
Stockholders’ equity: | |||||
Common stock, $0.01 par value per share | 343,000 | 110,000 | |||
Common Class I [Member] | |||||
Stockholders’ equity: | |||||
Common stock, $0.01 par value per share | $ 19,000 | $ 4,000 | |||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Line of Credit | [1] | $ 26,000,000 | $ 33,900,000 | |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common Class T [Member] | ||||
Common stock, par value (usd per share) | $ 0 | $ 0 | ||
Common stock, shares authorized | 900,000,000 | 900,000,000 | ||
Common stock, shares, issued | 34,346,388 | 11,000,433 | ||
Common stock, shares outstanding | 34,346,388 | 11,000,433 | ||
Common Class I [Member] | ||||
Common stock, par value (usd per share) | $ 0 | $ 0 | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||
Common stock, shares, issued | 1,884,007 | 377,006 | ||
Common stock, shares outstanding | 1,884,007 | 377,006 | ||
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Organization and Description of Business |
9 Months Ended |
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Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Griffin-American Healthcare REIT IV, Inc., a Maryland corporation, was incorporated on January 23, 2015 and therefore we consider that our date of inception. We were initially capitalized on February 6, 2015. We invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. We may also originate and acquire secured loans and real estate-related investments on an infrequent and opportunistic basis. We generally seek investments that produce current income. We qualified to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes beginning with our taxable year ended December 31, 2016, and we intend to continue to qualify to be taxed as a REIT. On February 16, 2016, we commenced our initial public offering, or our offering, in which we were offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to our distribution reinvestment plan, as amended, or the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of Class T common stock being offered and began offering shares of Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP, aggregating up to $3,150,000,000. The shares of our Class T common stock in our primary offering are being offered at a price of $10.00 per share. The shares of our Class I common stock in our primary offering were being offered at a price of $9.30 per share prior to March 1, 2017, and are being offered at a price of $9.21 per share for all shares issued effective March 1, 2017. The shares of our Class T and Class I common stock issued pursuant to the DRIP were sold at a price of $9.50 per share prior to January 1, 2017, and are sold at a price of $9.40 per share for all shares issued pursuant to the DRIP effective January 1, 2017. After our board of directors determines an estimated net asset value, or NAV, per share of our common stock, share prices are expected to be adjusted to reflect the estimated NAV per share and, in the case of shares offered pursuant to our primary offering, up-front selling commissions and dealer manager fees other than those funded by Griffin-American Healthcare REIT IV Advisor, LLC, or Griffin-American Healthcare REIT IV Advisor, or our advisor. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock. As of September 30, 2017, we had received and accepted subscriptions in our offering for 35,522,410 aggregate shares of our Class T and Class I common stock, or approximately $353,510,000, excluding shares of our common stock issued pursuant to the DRIP. We conduct substantially all of our operations through Griffin-American Healthcare REIT IV Holdings, LP, or our operating partnership. We are externally advised by our advisor pursuant to an advisory agreement, or the Advisory Agreement, between us and our advisor. The Advisory Agreement was effective as of February 16, 2016 and had a one-year term, subject to successive one-year renewals upon the mutual consent of the parties. The Advisory Agreement was renewed pursuant to the mutual consent of the parties on February 13, 2017 and expires on February 16, 2018. Our advisor uses its best efforts, subject to the oversight and review of our board of directors, to, among other things, research, identify, review and make investments in and dispositions of properties and securities on our behalf consistent with our investment policies and objectives. Our advisor performs its duties and responsibilities under the Advisory Agreement as our fiduciary. Our advisor is 75.0% owned and managed by American Healthcare Investors, LLC, or American Healthcare Investors, and 25.0% owned by a wholly owned subsidiary of Griffin Capital Company, LLC, or Griffin Capital (formerly known as Griffin Capital Corporation), or collectively, our co-sponsors. American Healthcare Investors is 47.1% owned by AHI Group Holdings, LLC, or AHI Group Holdings, 45.1% indirectly owned by Colony NorthStar, Inc. (NYSE: CLNS), or Colony NorthStar (formerly known as NorthStar Asset Management Group Inc. prior to its merger with Colony Capital, Inc. and NorthStar Realty Finance Corp. on January 10, 2017), and 7.8% owned by James F. Flaherty III, a former partner of Colony NorthStar. We are not affiliated with Griffin Capital, Griffin Capital Securities, LLC, or our dealer manager, Colony NorthStar or Mr. Flaherty; however, we are affiliated with Griffin-American Healthcare REIT IV Advisor, American Healthcare Investors and AHI Group Holdings. We currently operate through two reportable business segments — medical office buildings and senior housing. As of September 30, 2017, we had completed 17 real estate acquisitions whereby we owned 29 properties, comprising 30 buildings, or approximately 1,418,000 square feet of gross leasable area, or GLA, for an aggregate contract purchase price of $356,640,000. |
Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding our condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, in all material respects, and have been consistently applied in preparing our accompanying condensed consolidated financial statements. Basis of Presentation Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership and the wholly owned subsidiaries of our operating partnership, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810. We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership, and as of September 30, 2017 and December 31, 2016, we owned greater than a 99.99% general partnership interest therein. Our advisor is a limited partner, and as of September 30, 2017 and December 31, 2016, owned less than a 0.01% noncontrolling limited partnership interest in our operating partnership. Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation. Interim Unaudited Financial Data Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2016 Annual Report on Form 10-K, as filed with the SEC on March 1, 2017. Use of Estimates The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. Allowance for Uncollectible Accounts Tenant receivables and unbilled deferred rent receivables are carried net of an allowance for uncollectible amounts. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. We also maintain an allowance for deferred rent receivables arising from the straight line recognition of rents. Such allowances are charged to bad debt expense, which is included in general and administrative in our accompanying condensed consolidated statements of operations. Our determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. As of September 30, 2017 and December 31, 2016, we had $94,000 and $0, respectively, in allowance for uncollectible accounts, which was determined necessary to reduce receivables to our estimate of the amount recoverable. For the three and nine months ended September 30, 2017 and 2016, we did not write off any of our receivables directly to bad debt expense. For the three and nine months ended September 30, 2017 and 2016, we did not write off any receivables against the allowance for uncollectible accounts. As of September 30, 2017 and December 31, 2016, we did not have any allowance for uncollectible accounts for deferred rent receivables. For the three and nine months ended September 30, 2017, $0 and $2,000, respectively, of our deferred rent receivables were directly written off to bad debt expense. For the three and nine months ended September 30, 2016, we did not write off any of our deferred rent receivables directly to bad debt expense. Property Acquisitions In accordance with ASC Topic 805, Business Combinations, and Accounting Standards Update, or ASU, 2017-01, Clarifying the Definition of a Business, or ASU 2017-01, we determine whether a transaction is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired and liabilities assumed are not a business, we account for the transaction as an asset acquisition. Under both methods, we recognize the identifiable assets acquired and liabilities assumed; however, for a transaction accounted for as an asset acquisition, we allocate the purchase price to the identifiable assets acquired and liabilities assumed based on their relative fair values. We immediately expense acquisition related expenses associated with a business combination and capitalize acquisition related expenses directly associated with an asset acquisition. As a result of our early adoption of ASU 2017-01 on January 1, 2017, we accounted for the eight property acquisitions we completed for the nine months ended September 30, 2017 as asset acquisitions rather than business combinations. See Note 3, Real Estate Investments, Net, for a further discussion. For the nine months ended September 30, 2016, we completed five property acquisitions, which we accounted for as business combinations. See Note 14, Business Combinations, for a further discussion. Real Estate Deposits Real estate deposits include refundable and non-refundable funds held by escrow agents and others to be applied towards the acquisition of real estate investments, and such future investments are subject to substantial conditions to closing. As of September 30, 2017, we had $5,000,000 of non-refundable real estate deposits held in escrow to be applied towards the acquisition of a senior housing portfolio from unaffiliated third parties. The acquisition of such senior housing portfolio was completed on November 1, 2017 and the real estate deposits held in escrow were applied towards the purchase price. See Note 18, Subsequent Events — Property Acquisition, for a further discussion. Recently Issued or Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as codified in ASC Topic 606, which replaces the existing accounting standards for revenue recognition. ASC Topic 606 provides a five-step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. ASC Topic 606 is effective for interim and annual reporting periods beginning after December 15, 2017. Currently, our primary source of revenue is generated through leasing arrangements, which are excluded from ASC Topic 606; however, we expect that the adoption of ASC Topic 606 on January 1, 2018 will impact the recognition of common area maintenance from our current leasing arrangements and certain elements of resident fees (including revenues that are ancillary to the contractual rights of residents) for any healthcare-related facilities we may acquire and operate in the future utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a “RIDEA” structure (the provisions of the Code authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We will not apply the principles of ASC Topic 606 to our common area maintenance revenues and certain elements of resident fees to the extent they qualified as lease revenues until January 1, 2019, when we adopt ASU 2016-02, Leases, or ASU 2016-02. We have not yet selected a transition method and we expect to complete our evaluation of the impact of the adoption of ASC Topic 606 and its amendments on our consolidated financial statements during the fourth quarter of 2017. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01, which amends the classification and measurement of financial instruments. ASU 2016-01 revises the accounting related to: (i) the classification and measurement of investments in equity securities; and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, with respect to only certain of the amendments in ASU 2016-01, for financial statements that have not yet been made available for issuance. ASU 2016-01 requires the application of the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with certain exceptions. We do not expect the adoption of ASU 2016-01 on January 1, 2018 to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASC Topic 606. The disaggregated disclosure of lease and executory non-lease components (e.g., maintenance) will be required upon the adoption of ASU 2016-02. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with a few optional practical expedients. As a result of the adoption of ASU 2016-02 on January 1, 2019, we will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets and will capitalize fewer legal costs related to the drafting and execution of our lease agreements. We are still evaluating the transition method including the practical expedient offered in ASU 2016-02. We are also evaluating the complete impact of the adoption of ASU 2016-02 on January 1, 2019 to our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, or ASU 2016-15, which intends to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of ASU 2016-15 on January 1, 2018 to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, or ASU 2016-16, which removes the prohibition in ASC 740, Income Taxes, against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of ASU 2016-16 on January 1, 2018 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, or ASU 2017-04, which eliminates Step 2 from the goodwill impairment test and allows an entity to perform its goodwill impairment test by comparing the fair value of a reporting segment with its carrying amount. ASU 2017-04 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. We early adopted ASU 2017-04 on January 1, 2017, which did not have an impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, or ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Modification accounting is only applied if the value, the vesting conditions or the classification of the award (or equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 on January 1, 2018 to have a material impact on our consolidated financial statements. |
Real Estate Investments, Net |
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Real Estate Investments, Net | 3. Real Estate Investments, Net Our real estate investments, net consisted of the following as of September 30, 2017 and December 31, 2016:
Depreciation expense for the three and nine months ended September 30, 2017 was $2,305,000 and $5,110,000, respectively. Depreciation expense for the three and nine months ended September 30, 2016 was $40,000. For the three months ended September 30, 2017, we incurred capital expenditures of $324,000 on our medical office buildings and $700,000 on our senior housing facilities. In addition to the acquisitions discussed below, for the nine months ended September 30, 2017, we incurred capital expenditures of $1,076,000 on our medical office buildings and $700,000 on our senior housing facilities. We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets. The reimbursement of acquisition expenses, acquisition fees, total development costs and real estate commissions and other fees paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price of our property acquisitions, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors. For the three and nine months ended September 30, 2017 and 2016, such fees and expenses paid did not exceed 6.0% of the contract purchase price of our property acquisitions, except with respect to our acquisitions of Auburn MOB, Pottsville MOB and Lafayette Assisted Living Portfolio. Our directors, including a majority of our independent directors, not otherwise interested in the transactions, approved the reimbursement of fees and expenses to our advisor or its affiliates for the acquisitions of Auburn MOB, Pottsville MOB and Lafayette Assisted Living Portfolio in excess of the 6.0% limit and determined that such fees and expenses were commercially fair and reasonable to us. Acquisitions in 2017 For the nine months ended September 30, 2017, using net proceeds from our offering and debt financing, we completed eight property acquisitions comprising 18 buildings from unaffiliated third parties. The aggregate contract purchase price of these properties was $217,820,000 and we incurred $9,802,000 in total acquisition fees to our advisor in connection with these property acquisitions. The following is a summary of our property acquisitions for the nine months ended September 30, 2017:
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We accounted for the eight property acquisitions we completed for the nine months ended September 30, 2017 as asset acquisitions. We incurred base acquisition fees and direct acquisition related expenses of $6,999,000, which were capitalized in accordance with our early adoption of ASU 2017-01. In addition, we incurred Contingent Advisor Payments of $4,901,000 to our advisor for these property acquisitions. The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our eight property acquisitions in 2017 based on their relative fair values:
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Identified Intangible Assets, Net |
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Identified Intangible Assets, Net | 4. Identified Intangible Assets, Net Identified intangible assets, net consisted of the following as of September 30, 2017 and December 31, 2016:
Amortization expense on identified intangible assets for the three and nine months ended September 30, 2017 was $1,196,000 and $2,683,000, respectively, which included $38,000 and $104,000, respectively, of amortization recorded against real estate revenue for above-market leases and $24,000 and $73,000, respectively, of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations. Amortization expense on identified intangible assets for the three and nine months ended September 30, 2016 was $24,000, which related to in-place leases. The aggregate weighted average remaining life of the identified intangible assets was 19.6 years and 28.6 years as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, estimated amortization expense on the identified intangible assets for the three months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter was as follows:
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Other Assets, Net |
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Other Assets, Net | 5. Other Assets, Net Other assets, net consisted of the following as of September 30, 2017 and December 31, 2016:
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Amortization expense on deferred financing costs of the Line of Credit for the three and nine months ended September 30, 2017 was $90,000 and $267,000, respectively. Amortization expense on deferred financing costs of the Line of Credit for the three and nine months ended September 30, 2016 was $27,000. Amortization expense on deferred financing costs of the Line of Credit is recorded to interest expense in our accompanying condensed consolidated statements of operations. Amortization expense on lease commissions for the three and nine months ended September 30, 2017 was $3,000. For the three and nine months ended September 30, 2016, we did not incur any amortization expense on lease commissions. |
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Mortgage Loans Payable, Net | 6. Mortgage Loans Payable, Net Mortgage loans payable were $11,718,000 ($11,639,000, including premium and deferred financing costs, net) and $3,908,000 ($3,965,000, including premium and deferred financing costs, net) as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, we had two fixed-rate mortgage loans with interest rates ranging from 4.77% to 5.25% per annum, maturity dates ranging from April 1, 2020 to August 1, 2029 and a weighted average effective interest rate of 4.92%. As of December 31, 2016, we had one fixed-rate mortgage loan with an interest rate of 5.25% per annum and a maturity date of August 1, 2029. The changes in the carrying amount of mortgage loans payable, net consisted of the following for the nine months ended September 30, 2017 and 2016:
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As of September 30, 2017, the principal payments due on our mortgage loans payable for the three months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter were as follows:
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Line of Credit |
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Sep. 30, 2017 | |
Line of Credit Facility [Abstract] | |
Lines Of Credit | 7. Line of Credit On August 25, 2016, we, through our operating partnership, as borrower, and certain of our subsidiaries, or the subsidiary guarantors, and us, collectively as guarantors, entered into a credit agreement, or the Credit Agreement, with Bank of America, N.A., or Bank of America, as administrative agent, swing line lender and letters of credit issuer; and KeyBank, National Association, or KeyBank, as syndication agent and letters of credit issuer, to obtain a revolving line of credit with an aggregate maximum principal amount of $100,000,000, or the Line of Credit, subject to certain terms and conditions. On August 25, 2016, we also entered into separate revolving notes, or the Revolving Notes, with each of Bank of America and KeyBank, whereby we promised to pay the principal amount of each revolving loan and accrued interest to the respective lender or its registered assigns, in accordance with the terms and conditions of the Credit Agreement. The proceeds of loans made under the Line of Credit may be used for general working capital (including acquisitions), capital expenditures and other general corporate purposes not inconsistent with obligations under the Credit Agreement. We may obtain up to $20,000,000 in the form of standby letters of credit and up to $25,000,000 in the form of swing line loans. The Line of Credit matures on August 25, 2019, and may be extended for one 12-month period during the term of the Credit Agreement subject to satisfaction of certain conditions, including payment of an extension fee. The maximum principal amount of the Credit Agreement may be increased by up to $100,000,000, for a total principal amount of $200,000,000, subject to: (i) the terms of the Credit Agreement; and (ii) at least five business days’ prior written notice to Bank of America. On October 31, 2017, we increased the aggregate maximum principal amount of the Line of Credit to $200,000,000. See Note 18, Subsequent Events — Amendment to the Credit Agreement with Bank of America and KeyBank, for a further discussion. At our option, the Line of Credit bears interest at per annum rates equal to (a) (i) the Eurodollar Rate (as defined in the Credit Agreement) plus (ii) a margin ranging from 1.75% to 2.25% based on our Consolidated Leverage Ratio (as defined in the Credit Agreement), or (b) (i) the greater of: (1) the prime rate publicly announced by Bank of America, (2) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.50%, (3) the one-month Eurodollar Rate plus 1.00%, and (4) 0.00%, plus (ii) a margin ranging from 0.55% to 1.05% based on our Consolidated Leverage Ratio. Accrued interest on the Line of Credit is payable monthly. The loans may be repaid in whole or in part without prepayment premium or penalty, subject to certain conditions. We are required to pay a fee on the unused portion of the lenders’ commitments under the Credit Agreement at a per annum rate equal to 0.20% if the average daily used amount is greater than 50.0% of the commitments and 0.25% if the average daily used amount is less than or equal to 50.0% of the commitments, which fee shall be measured and payable on a quarterly basis. The Credit Agreement contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by our operating partnership and its subsidiaries. The Credit Agreement also imposes certain financial covenants based on the following criteria, which are specifically defined in the Credit Agreement: (a) Consolidated Leverage Ratio; (b) Consolidated Secured Leverage Ratio; (c) Consolidated Tangible Net Worth; (d) Consolidated Fixed Charge Coverage Ratio; (e) Unencumbered Indebtedness Yield; (f) Consolidated Unencumbered Leverage Ratio; (g) Consolidated Unencumbered Interest Coverage Ratio; (h) Secured Recourse Indebtedness; and (i) Consolidated Unsecured Indebtedness. The Credit Agreement permits us to add additional subsidiaries as guarantors. In the event of default, Bank of America has the right to terminate its obligations under the Credit Agreement, including the funding of future loans, and to accelerate the payment on any unpaid principal amount of all outstanding loans and interest thereon. Additionally, in connection with the Credit Agreement, we also entered into a Pledge Agreement on August 25, 2016, pursuant to which we pledged the capital stock of our subsidiaries which own the real property to be included in the Unencumbered Property Pool, as such term is defined in the Credit Agreement. The pledged collateral will be released upon achieving a consolidated total asset value of at least $750,000,000. As of September 30, 2017 and December 31, 2016, our aggregate borrowing capacity under the Line of Credit was $100,000,000. As of September 30, 2017 and December 31, 2016, borrowings outstanding totaled $26,000,000 and $33,900,000, respectively, and $74,000,000 and $66,100,000, respectively, remained available under the Line of Credit. As of September 30, 2017 and December 31, 2016, the weighted average interest rate on borrowings outstanding was 3.72% and 4.30% per annum, respectively. |
Identified Intangible Liabilities, Net |
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Identified Intangible Liabilities Net | 8. Identified Intangible Liabilities, Net Identified intangible liabilities, net consisted of the following as of September 30, 2017 and December 31, 2016:
Amortization expense on identified intangible liabilities for the three and nine months ended September 30, 2017 was $70,000 and $207,000, respectively, which included $68,000 and $203,000, respectively, of amortization recorded to real estate revenue for below-market leases and $2,000 and $4,000, respectively, of amortization recorded against rental expenses for above-market leasehold interests in our accompanying condensed consolidated statements of operations. We did not incur any amortization expense on identified intangible liabilities for the three and nine months ended September 30, 2016. The aggregate weighted average remaining life of the identified intangible liabilities was 16.4 years and 5.4 years as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, estimated amortization expense on identified intangible liabilities for the three months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter was as follows:
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Commitments and Contingencies |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Matters We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. Other Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business, which include calls/puts to sell/acquire properties. In our view, these matters are not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Redeemable Noncontrolling Interest |
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Redeemable Noncontrolling Interest | 10. Redeemable Noncontrolling Interest As of September 30, 2017 and December 31, 2016, we owned greater than a 99.99% general partnership interest in our operating partnership, and our advisor owned less than a 0.01% limited partnership interest in our operating partnership. The noncontrolling interest of our advisor in our operating partnership, which has redemption features outside of our control, is accounted for as a redeemable noncontrolling interest and is presented outside of permanent equity in our accompanying condensed consolidated balance sheets. See Note 11, Equity — Noncontrolling Interest of Limited Partner in Operating Partnership, for a further discussion. In addition, see Note 12, Related Party Transactions — Liquidity Stage — Subordinated Participation Interest — Subordinated Distribution Upon Listing, and Note 12, Related Party Transactions — Subordinated Distribution Upon Termination, for a further discussion of the redemption features of the limited partnership units. We record the carrying amount of redeemable noncontrolling interest at the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interest’s share of net income or loss and distributions; or (ii) the redemption value. The changes in the carrying amount of redeemable noncontrolling interest consisted of the following for the nine months ended September 30, 2017 and 2016:
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Equity |
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Equity | 11. Equity Preferred Stock Our charter authorizes us to issue 200,000,000 shares of our preferred stock, par value $0.01 per share. As of September 30, 2017 and December 31, 2016, no shares of preferred stock were issued and outstanding. Common Stock Our charter authorizes us to issue 1,000,000,000 shares of our common stock, par value $0.01 per share. We commenced our public offering of shares of our common stock on February 16, 2016, and as of such date we were offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of our Class T common stock being offered and began offering shares of our Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP. Subsequent to the reallocation, of the 1,000,000,000 shares of common stock authorized, 900,000,000 shares are classified as Class T common stock and 100,000,000 shares are classified as Class I common stock. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock. The shares of our Class T common stock in the primary offering are being offered at a price of $10.00 per share. The shares of our Class I common stock in the primary offering were being offered at a price of $9.30 per share prior to March 1, 2017, and are being offered at a price of $9.21 per share for all shares issued effective March 1, 2017. The shares of our Class T and Class I common stock issued pursuant to the DRIP were sold at a price of $9.50 per share prior to January 1, 2017, and are sold at a price of $9.40 per share for all shares issued pursuant to the DRIP effective January 1, 2017. After our board of directors determines an estimated NAV per share of our common stock, share prices are expected to be adjusted to reflect the estimated NAV per share and, in the case of shares offered pursuant to our primary offering, up-front selling commissions and dealer manager fees other than those funded by our advisor. Each share of our common stock, regardless of class, will be entitled to one vote per share on matters presented to the common stockholders for approval; provided, however, that stockholders of one share class shall have exclusive voting rights on any amendment to our charter that would alter only the contract rights of that share class, and no stockholders of another share class shall be entitled to vote thereon. On February 6, 2015, our advisor acquired shares of our Class T common stock for total cash consideration of $200,000 and was admitted as our initial stockholder. We used the proceeds from the sale of shares of our Class T common stock to our advisor to make an initial capital contribution to our operating partnership. As of September 30, 2017 and December 31, 2016, our advisor owned 20,833 shares of our Class T common stock. Through September 30, 2017, we had issued 35,522,410 aggregate shares of our Class T and Class I common stock in connection with the primary portion of our offering and 668,035 aggregate shares of our Class T and Class I common stock pursuant to the DRIP. We also granted an aggregate of 37,500 shares of our restricted Class T common stock to our independent directors and repurchased 18,383 shares of our common stock under our share repurchase plan through September 30, 2017. As of September 30, 2017 and December 31, 2016, we had 36,230,395 and 11,377,439 aggregate shares of our Class T and Class I common stock, respectively, issued and outstanding. As of September 30, 2017, we had a receivable of $807,000 for offering proceeds, net of selling commissions and dealer manager fees, from our transfer agent, which was received in October 2017. Distribution Reinvestment Plan We have registered and reserved $150,000,000 in shares of our common stock for sale pursuant to the DRIP in our offering. The DRIP allows stockholders to purchase additional Class T shares and Class I shares of our common stock through the reinvestment of distributions during our offering. Prior to January 1, 2017, we issued both Class T shares and Class I shares pursuant to the DRIP at a price of $9.50 per share. Effective January 1, 2017, shares of both Class T shares and Class I shares issued pursuant to the DRIP are issued at a price of $9.40 per share until our board of directors determines an estimated NAV per share of our common stock. After our board of directors determines an estimated NAV per share of our common stock, participants in the DRIP will receive Class T shares and Class I shares, as applicable, at the most recently published estimated NAV per share of our common stock. Pursuant to the DRIP, distributions with respect to Class T shares are reinvested in Class T shares and distributions with respect to Class I shares are reinvested in Class I shares. For the three and nine months ended September 30, 2017, $2,618,000 and $5,492,000, respectively, in distributions were reinvested and 278,520 and 584,318 shares of our common stock, respectively, were issued pursuant to the DRIP. For the three and nine months ended September 30, 2016, $203,000 and $222,000, respectively, in distributions were reinvested and 21,376 and 23,379 shares of our common stock, respectively, were issued pursuant to the DRIP. As of September 30, 2017 and December 31, 2016, a total of $6,288,000 and $796,000, respectively, in distributions were reinvested that resulted in 668,035 and 83,717 shares of our common stock, respectively, being issued pursuant to the DRIP. Share Repurchase Plan In February 2016, our board of directors approved a share repurchase plan. The share repurchase plan allows for repurchases of shares of our common stock by us when certain criteria are met. Share repurchases will be made at the sole discretion of our board of directors. Subject to the availability of the funds for share repurchases, we will limit the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year; provided, however, that shares subject to a repurchase requested upon the death of a stockholder will not be subject to this cap. Funds for the repurchase of shares of our common stock will come exclusively from the cumulative proceeds we receive from the sale of shares of our common stock pursuant to the DRIP. All repurchases will be subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or “qualifying disability,” as defined in our share repurchase plan. Further, all share repurchases will be repurchased following a one-year holding period at a price between 92.5% to 100% of each stockholder’s repurchase amount depending on the period of time their shares have been held. During our offering, the repurchase amount for shares repurchased under our share repurchase plan shall be equal to the lesser of (i) the amount per share that a stockholder paid for their shares of our common stock, or (ii) the per share offering price in our offering. If we are no longer engaged in an offering, the repurchase amount for shares repurchased under our share repurchase plan will be determined by our board of directors. However, if shares of our common stock are repurchased in connection with a stockholder’s death or qualifying disability, the repurchase price will be no less than 100% of the price paid to acquire the shares of our common stock from us. Furthermore, our share repurchase plan provides that if there are insufficient funds to honor all repurchase requests, pending requests will be honored among all requests for repurchase in any given repurchase period, as follows: first, pro rata as to repurchases sought upon a stockholder’s death; next, pro rata as to repurchases sought by stockholders with a qualifying disability; and, finally, pro rata as to other repurchase requests. For the three and nine months ended September 30, 2017, we received share repurchase requests and repurchased 11,209 and 18,383 shares of our common stock, respectively, for an aggregate of $109,000 and $178,000, respectively, at an average repurchase price of $9.69 and $9.68 per share, respectively. No share repurchases were requested or made for the three and nine months ended September 30, 2016. As of September 30, 2017, we received share repurchase requests and repurchased 18,383 shares of our common stock for an aggregate of $178,000 at an average repurchase price of $9.68 per share. All shares were repurchased using proceeds we received from the sale of shares of our common stock pursuant to the DRIP. As of December 31, 2016, no share repurchases were requested or made. 2015 Incentive Plan In February 2016, we adopted our incentive plan, pursuant to which our board of directors or a committee of our independent directors may make grants of options, restricted shares of common stock, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our incentive plan is 4,000,000 shares. Through September 30, 2017, we granted an aggregate of 22,500 shares of our restricted Class T common stock, as defined in our incentive plan, to our independent directors in connection with their initial election or re-election to our board of directors, of which 20.0% immediately vested on the grant date and 20.0% will vest on each of the first four anniversaries of the grant date. In addition, through September 30, 2017, we granted an aggregate of 15,000 shares of our restricted Class T common stock to our independent directors in consideration for their past services rendered. These shares of restricted Class T common stock vest under the same period described above. Shares of our restricted common stock may not be sold, transferred, exchanged, assigned, pledged, hypothecated or otherwise encumbered. Such restrictions expire upon vesting. Shares of our restricted common stock will have full voting rights and rights to distributions. From the applicable service inception dates to the applicable grant dates, we recognized compensation expense related to the shares of our restricted Class T common stock based on the reporting date fair value, which was estimated at $10.00 per share, the price paid to acquire one share of Class T common stock in our offering. Beginning on the applicable grant dates, compensation cost related to the shares of our restricted Class T common stock is measured based on the applicable grant date fair value, which was estimated at $10.00 per share, the price paid to acquire one share of Class T common stock in our offering. Stock compensation expense is recognized from the applicable service inception date to the applicable vesting date for each vesting tranche (i.e., on a tranche-by-tranche basis) using the accelerated attribution method. ASC Topic 718, Compensation — Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For the three and nine months ended September 30, 2017 and 2016, we did not assume any forfeitures. For the three months ended September 30, 2017 and 2016, we recognized compensation expense of $61,000 and $14,000, respectively, and for the nine months ended September 30, 2017 and 2016, we recognized stock compensation expense of $100,000 and $66,000, respectively, which is included in general and administrative in our accompanying condensed consolidated statements of operations. As of September 30, 2017 and December 31, 2016, there was $195,000 and $70,000, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to nonvested shares of our restricted Class T common stock. As of September 30, 2017, this expense is expected to be recognized over a remaining weighted average period of 2.00 years. As of September 30, 2017 and December 31, 2016, the weighted average grant date fair value of the nonvested shares of our restricted Class T common stock was $270,000 and $120,000, respectively. A summary of the status of the nonvested shares of our restricted Class T common stock as of September 30, 2017 and December 31, 2016 and the changes for the nine months ended September 30, 2017 is presented below:
Offering Costs Selling Commissions Generally, we pay our dealer manager selling commissions of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering. To the extent that selling commissions are less than 3.0% of the gross offering proceeds for any Class T shares sold, such reduction in selling commissions will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No selling commissions are payable on Class I shares or shares of our common stock sold pursuant to the DRIP. Our dealer manager may re-allow all or a portion of these fees to participating broker-dealers. For the three months ended September 30, 2017 and 2016, we incurred $2,059,000 and $1,012,000, respectively, in selling commissions to our dealer manager. For the nine months ended September 30, 2017 and 2016, we incurred $6,763,000 and $1,392,000, respectively, in selling commissions to our dealer manager. Such commissions were charged to stockholders’ equity as such amounts were paid to our dealer manager from the gross proceeds of our offering. Dealer Manager Fee With respect to shares of our Class T common stock, our dealer manager generally receives a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds is funded by us and up to an amount equal to 2.0% of the gross offering proceeds is funded by our advisor. With respect to shares of our Class I common stock, prior to March 1, 2017, our dealer manager generally received a dealer manager fee up to 3.0% of the gross offering proceeds from the sale of Class I shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds was funded by us and an amount equal to 2.0% of the gross offering proceeds was funded by our advisor. Effective March 1, 2017, our dealer manager generally receives a dealer manager fee up to an amount equal to 1.5% of the gross offering proceeds from the sale of Class I shares pursuant to our primary offering, all of which is funded by our advisor. Our dealer manager may enter into participating dealer agreements with participating dealers that provide for a reduction or waiver of dealer manager fees. To the extent that the dealer manager fee is less than 3.0% of the gross offering proceeds for any Class T shares sold and less than 1.5% of the gross offering proceeds for any Class I shares sold, such reduction will be applied first to the portion of the dealer manager fee funded by our advisor. To the extent that any reduction in dealer manager fee exceeds the portion of the dealer manager fee funded by our advisor, such excess reduction will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. Our dealer manager may re-allow all or a portion of these fees to participating broker-dealers. For the three months ended September 30, 2017 and 2016, we incurred $689,000 and $370,000, respectively, in dealer manager fees to our dealer manager. For the nine months ended September 30, 2017 and 2016, we incurred $2,311,000 and $521,000, respectively, in dealer manager fees to our dealer manager. Such fees were charged to stockholders’ equity as such amounts were paid to our dealer manager or its affiliates from the gross proceeds of our offering. See Note 12, Related Party Transactions — Offering Stage — Dealer Manager Fee, for a further discussion of the dealer manager fee funded by our advisor. Stockholder Servicing Fee We pay our dealer manager a quarterly stockholder servicing fee with respect to our Class T shares sold as additional compensation to the dealer manager and participating broker-dealers. No stockholder servicing fee shall be paid with respect to Class I shares or shares of our common stock sold pursuant to the DRIP. The stockholder servicing fee accrues daily in an amount equal to 1/365th of 1.0% of the purchase price per share of our Class T shares sold in our primary offering and, in the aggregate will not exceed an amount equal to 4.0% of the gross proceeds from the sale of Class T shares in our primary offering. We will cease paying the stockholder servicing fee with respect to our Class T shares sold in our offering upon the occurrence of certain defined events. Our dealer manager may re-allow to participating broker-dealers all or a portion of the stockholder servicing fee for services that such participating broker-dealers perform in connection with the shares of our Class T common stock. By agreement with participating broker-dealers, such stockholder servicing fee may be reduced or limited. For the three months ended September 30, 2017 and 2016, we incurred $2,430,000 and $1,349,000, respectively, in stockholder servicing fees to our dealer manager. For the nine months ended September 30, 2017 and 2016, we incurred $8,568,000 and $1,856,000, respectively, in stockholder servicing fees to our dealer manager. As of September 30, 2017 and December 31, 2016, we accrued $11,496,000 and $3,973,000, respectively, in connection with the stockholder servicing fee payable, which is included in accounts payable and accrued liabilities with a corresponding offset to stockholders’ equity in our accompanying condensed consolidated balance sheets. Noncontrolling Interest of Limited Partner in Operating Partnership On February 6, 2015, our advisor made an initial capital contribution of $2,000 to our operating partnership in exchange for Class T partnership units. Upon the effectiveness of the Advisory Agreement on February 16, 2016, Griffin-American Healthcare REIT IV Advisor became our advisor. As our advisor, Griffin-American Healthcare REIT IV Advisor is entitled to redemption rights of its limited partnership units. Therefore, as of February 16, 2016, such limited partnership units no longer meet the criteria for classification within the equity section of our accompanying condensed consolidated balance sheets, and as such, were reclassified outside of permanent equity, as a mezzanine item, in our accompanying condensed consolidated balance sheets. See Note 10, Redeemable Noncontrolling Interest, for a further discussion. As of September 30, 2017 and December 31, 2016, our advisor owned all of our 208 Class T partnership units outstanding. |
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Related Party Transactions | 12. Related Party Transactions Fees and Expenses Paid to Affiliates All of our executive officers and one of our non-independent directors are also executive officers and employees and/or holders of a direct or indirect interest in our advisor, one of our co-sponsors or other affiliated entities. We are affiliated with our advisor, American Healthcare Investors and AHI Group Holdings; however, we are not affiliated with Griffin Capital, our dealer manager, Colony NorthStar or Mr. Flaherty. We entered into the Advisory Agreement, which entitles our advisor and its affiliates to specified compensation for certain services, as well as reimbursement of certain expenses. For the three months ended September 30, 2017 and 2016, we incurred $2,856,000 and $2,331,000, respectively, and for the nine months ended September 30, 2017 and 2016, we incurred $12,633,000 and $5,500,000, respectively, in fees and expenses to our affiliates as detailed below. Offering Stage Dealer Manager Fee With respect to shares of our Class T common stock, our dealer manager generally receives a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds is funded by us and up to an amount equal to 2.0% of the gross offering proceeds is funded by our advisor. With respect to shares of our Class I common stock, prior to March 1, 2017, our dealer manager generally received a dealer manager fee up to 3.0% of the gross offering proceeds from the sale of Class I shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds was funded by us and an amount equal to 2.0% of the gross offering proceeds was funded by our advisor. Effective March 1, 2017, our dealer manager generally receives a dealer manager fee up to an amount equal to 1.5% of the gross offering proceeds from the sale of Class I shares pursuant to our primary offering, all of which is funded by our advisor. Our dealer manager may enter into participating dealer agreements with participating dealers that provide for a reduction or waiver of dealer manager fees. To the extent that the dealer manager fee is less than 3.0% of the gross offering proceeds for any Class T shares sold and less than 1.5% of the gross offering proceeds for any Class I shares sold, such reduction will be applied first to the portion of the dealer manager fee funded by our advisor. To the extent that any reduction in dealer manager fee exceeds the portion of the dealer manager fee funded by our advisor, such excess reduction will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. Our advisor intends to recoup the portion of the dealer manager fee it funds through the receipt of the Contingent Advisor Payment from us, as described below, through the payment of acquisition fees. For the three months ended September 30, 2017 and 2016, we incurred $1,414,000 and $741,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the dealer manager fee that our advisor had incurred. For the nine months ended September 30, 2017 and 2016, we incurred $4,751,000 and $1,043,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the dealer manager fee that our advisor had incurred. Such fee was charged to stockholders' equity as incurred with a corresponding offset to accounts payable due to affiliates in our accompanying condensed consolidated balance sheets. See Note 11, Equity — Offering Costs — Dealer Manager Fee, for a further discussion of the dealer manager fee funded by us. Other Organizational and Offering Expenses Our other organizational and offering expenses in connection with our offering (other than selling commissions, the dealer manager fee and the stockholder servicing fee) are funded by our advisor. Our advisor intends to recoup such expenses it funds through the receipt of the Contingent Advisor Payment from us, as described below, through the payment of acquisition fees. We anticipate that our other organizational and offering expenses will not exceed 1.0% of the gross offering proceeds for shares of our common stock sold pursuant to our primary offering. No other organizational and offering expenses will be paid with respect to shares of our common stock sold pursuant to the DRIP. For the three months ended September 30, 2017 and 2016, we incurred $259,000 and $344,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the other organizational and offering expenses that our advisor had incurred. For the nine months ended September 30, 2017 and 2016, we incurred $1,151,000 and $2,759,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the other organizational and offering expenses that our advisor had incurred. Such expenses were charged to stockholders' equity as incurred with a corresponding offset to accounts payable due to affiliates in our accompanying condensed consolidated balance sheets. Acquisition and Development Stage Acquisition Fee We pay our advisor an acquisition fee of up to 4.50% of the contract purchase price, including any contingent or earn-out payments that may be paid, of each property we acquire or, with respect to any real estate-related investment we originate or acquire, up to 4.25% of the origination or acquisition price, including any contingent or earn-out payments that may be paid. The 4.50% or 4.25% acquisition fees consist of a 2.25% or 2.00% base acquisition fee, or the base acquisition fee, for real estate and real estate-related acquisitions, respectively, and an additional 2.25% contingent advisor payment, or the Contingent Advisor Payment. The Contingent Advisor Payment allows our advisor to recoup the portion of the dealer manager fee and other organizational and offering expenses funded by our advisor. Therefore, the amount of the Contingent Advisor Payment paid upon the closing of an acquisition shall not exceed the then outstanding amounts paid by our advisor for dealer manager fees and other organizational and offering expenses at the time of such closing. For these purposes, the amounts paid by our advisor and considered as “outstanding” are reduced by the amount of the Contingent Advisor Payment previously paid. Notwithstanding the foregoing, the initial $7,500,000 of amounts paid by our advisor to fund the dealer manager fee and other organizational and offering expenses, or the Contingent Advisor Payment Holdback, shall be retained by us until the later of the termination of our last public offering or the third anniversary of the commencement date of our initial public offering, at which time such amount shall be paid to our advisor or its affiliates. In connection with any subsequent public offering of shares of our common stock, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such subsequent public offering and the amount sold in prior offerings. Our advisor or its affiliates will be entitled to receive these acquisition fees for properties and real estate-related investments acquired with funds raised in our offering, including acquisitions completed after the termination of the Advisory Agreement (including imputed leverage of 50.0% on funds raised in our offering), or funded with net proceeds from the sale of a property or real estate-related investment, subject to certain conditions. Our advisor may waive or defer all or a portion of the acquisition fee at any time and from time to time, in our advisor’s sole discretion. The base acquisition fee in connection with the acquisition of properties accounted for as business combinations is expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations. The base acquisition fee in connection with the acquisition of properties accounted for as asset acquisitions or the acquisition of real estate-related investments is capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. For the three months ended September 30, 2017 and 2016, we paid base acquisition fees of $347,000 and $1,220,000, respectively, to our advisor. For the nine months ended September 30, 2017 and 2016, we paid base acquisition fees of $4,901,000 and $1,343,000, respectively, to our advisor. As of September 30, 2017 and December 31, 2016, we recorded $7,759,000 and $5,404,000, respectively, as part of the Contingent Advisor Payment, which is included in accounts payable due to affiliates with a corresponding offset to stockholders’ equity in our accompanying condensed consolidated balance sheets. As of September 30, 2017, we have paid $3,548,000 in Contingent Advisor Payments to our advisor. For a further discussion of amounts paid in connection with the Contingent Advisor Payment, see Dealer Manager Fee and Other Organizational and Offering Expenses, above. In addition, see Note 3, Real Estate Investments, Net, for a further discussion. Development Fee In the event our advisor or its affiliates provide development-related services, we pay our advisor or its affiliates a development fee in an amount that is usual and customary for comparable services rendered for similar projects in the geographic market where the services are provided; however, we will not pay a development fee to our advisor or its affiliates if our advisor or its affiliates elect to receive an acquisition fee based on the cost of such development. For the three and nine months ended September 30, 2017 and 2016, we did not incur any development fees to our advisor or its affiliates. Reimbursement of Acquisition Expenses We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets, which are reimbursed regardless of whether an asset is acquired. The reimbursement of acquisition expenses, acquisition fees, total development costs and real estate commissions paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price of the property or real estate-related investments, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors, not otherwise interested in the transaction. For the three and nine months ended September 30, 2017 and 2016, such fees and expenses paid did not exceed 6.0% of the contract purchase price of our property acquisitions, except with respect to our acquisitions of Auburn MOB, Pottsville MOB and Lafayette Assisted Living Portfolio. For a further discussion, see Note 3, Real Estate Investments, Net. Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as business combinations are expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations. Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as asset acquisitions or the acquisition of real estate-related investments are capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. For the three and nine months ended September 30, 2017, we incurred $0 and $2,000, respectively, in acquisition expenses to our advisor or its affiliates. We did not incur any acquisition expenses to our advisor or its affiliates for the three and nine months ended September 30, 2016. Operational Stage Asset Management Fee We pay our advisor or its affiliates a monthly fee for services rendered in connection with the management of our assets equal to one-twelfth of 0.80% of average invested assets. For such purposes, average invested assets means the average of the aggregate book value of our assets invested in real estate properties and real estate-related investments, before deducting depreciation, amortization, bad debt and other similar non-cash reserves, computed by taking the average of such values at the end of each month during the period of calculation. For the three and nine months ended September 30, 2017, we incurred $700,000 and $1,505,000, respectively, in asset management fees to our advisor. We did not incur any asset management fees to our advisor or its affiliates for the three and nine months ended September 30, 2016 as a result of our advisor waiving $29,000 and $31,000, respectively, in asset management fees. Our advisor agreed to waive certain asset management fees that may otherwise have been due to our advisor pursuant to the Advisory Agreement until such time as the amount of such waived asset management fees was equal to the amount of distributions payable to our stockholders for the period beginning on May 1, 2016 and ending on the date of the acquisition of our first property or real estate-related investment, as such terms are defined in the Advisory Agreement. We purchased our first property in June 2016. As such, the asset management fees of $31,000 that would have been incurred through September 2016 were waived by our advisor and an additional $49,000 in asset management fees was waived during the remainder for 2016. Our advisor did not receive any additional securities, shares of our stock, or any other form of consideration or any repayment as a result of the waiver of such asset management fees. Asset management fees are included in general and administrative in our accompanying condensed consolidated statements of operations. Property Management Fee American Healthcare Investors or its designated personnel may provide property management services with respect to our properties or may sub-contract these duties to any third party and provide oversight of such third-party property manager. We pay American Healthcare Investors a monthly management fee equal to a percentage of the gross monthly cash receipts of such property as follows: (i) a property management oversight fee of 1.0% of the gross monthly cash receipts of any stand-alone, single-tenant, net leased property, except for such properties operated utilizing a RIDEA structure, for which we pay a property management oversight fee of 1.5% of the gross monthly cash receipts with respect to such property; (ii) a property management oversight fee of 1.5% of the gross monthly cash receipts of any property that is not a stand-alone, single-tenant, net leased property and for which American Healthcare Investors or its designated personnel provide oversight of a third party that performs the duties of a property manager with respect to such property; or (iii) a fair and reasonable property management fee that is approved by a majority of our directors, including a majority of our independent directors, that is not less favorable to us than terms available from unaffiliated third parties for any property that is not a stand-alone, single-tenant, net leased property and for which American Healthcare Investors or its designated personnel directly serve as the property manager without sub-contracting such duties to a third party. Property management fees are included in rental expenses in our accompanying condensed consolidated statements of operations. For the three months ended September 30, 2017 and 2016, we incurred property management fees of $103,000 and $5,000, respectively, to American Healthcare Investors. For the nine months ended September 30, 2017 and 2016, we incurred property management fees of $249,000 and $5,000, respectively, to American Healthcare Investors. Lease Fees We may pay our advisor or its affiliates a separate fee for any leasing activities in an amount not to exceed the fee customarily charged in arm’s-length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area. Such fee is generally expected to range from 3.0% to 6.0% of the gross revenues generated during the initial term of the lease. Lease fees are capitalized as lease commissions, which are included in other assets, net in our accompanying condensed consolidated balance sheets, and amortized over the term of the lease. For the three and nine months ended September 30, 2017, we incurred lease fees of $12,000. For the three and nine months ended September 30, 2016, we did not incur any lease fees to our advisor or its affiliates. Construction Management Fee In the event that our advisor or its affiliates assist with planning and coordinating the construction of any capital or tenant improvements, we pay our advisor or its affiliates a construction management fee of up to 5.0% of the cost of such improvements. Construction management fees are capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets or are expensed and included in our accompanying condensed consolidated statements of operations, as applicable. For the three and nine months ended September 30, 2017 and 2016, we did not incur any construction management fees to our advisor or its affiliates. Operating Expenses We reimburse our advisor or its affiliates for operating expenses incurred in rendering services to us, subject to certain limitations. However, we will not reimburse our advisor or its affiliates at the end of any fiscal quarter for total operating expenses that, in the four consecutive fiscal quarters then ended, exceed the greater of: (i) 2.0% of our average invested assets, as defined in the Advisory Agreement; or (ii) 25.0% of our net income, as defined in the Advisory Agreement, unless our independent directors determined that such excess expenses were justified based on unusual and nonrecurring factors which they deem sufficient. Our operating expenses as a percentage of average invested assets and as a percentage of net income were 1.4% and 40.9%, respectively, for the 12 months ended September 30, 2017; however, we did not exceed the aforementioned limitation as 2.0% of our average invested assets was greater than 25.0% of our net income. For the three months ended September 30, 2017 and 2016, our advisor incurred operating expenses on our behalf of $21,000, and for the nine months ended September 30, 2017 and 2016, our advisor incurred operating expenses on our behalf of $62,000 and $350,000, respectively. Operating expenses are generally included in general and administrative in our accompanying condensed consolidated statements of operations. Compensation for Additional Services We pay our advisor and its affiliates for services performed for us other than those required to be rendered by our advisor or its affiliates under the Advisory Agreement. The rate of compensation for these services has to be approved by a majority of our board of directors, including a majority of our independent directors, and cannot exceed an amount that would be paid to unaffiliated third parties for similar services. For the three and nine months ended September 30, 2017 and 2016, our advisor and its affiliates were not compensated for any additional services. Liquidity Stage Disposition Fees For services relating to the sale of one or more properties, we pay our advisor or its affiliates a disposition fee up to the lesser of 2.0% of the contract sales price or 50.0% of a customary competitive real estate commission given the circumstances surrounding the sale, in each case as determined by our board of directors, including a majority of our independent directors, upon the provision of a substantial amount of the services in the sales effort. The amount of disposition fees paid, when added to the real estate commissions paid to unaffiliated third parties, will not exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. For the three and nine months ended September 30, 2017 and 2016, we did not incur any disposition fees to our advisor or its affiliates. Subordinated Participation Interest Subordinated Distribution of Net Sales Proceeds In the event of liquidation, we will pay our advisor a subordinated distribution of net sales proceeds. The distribution will be equal to 15.0% of the remaining net proceeds from the sales of properties, after distributions to our stockholders, in the aggregate, of: (i) a full return of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan); plus (ii) an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock, as adjusted for distributions of net sales proceeds. Actual amounts to be received depend on the sale prices of properties upon liquidation. For the three and nine months ended September 30, 2017 and 2016, we did not pay any such distributions to our advisor. Subordinated Distribution Upon Listing Upon the listing of shares of our common stock on a national securities exchange, in redemption of our advisor’s limited partnership units, we will pay our advisor a distribution equal to 15.0% of the amount by which: (i) the market value of our outstanding common stock at listing plus distributions paid prior to listing exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the amount of cash that, if distributed to stockholders as of the date of listing, would have provided them an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the date of listing. Actual amounts to be received depend upon the market value of our outstanding stock at the time of listing, among other factors. For the three and nine months ended September 30, 2017 and 2016, we did not pay any such distributions to our advisor. Subordinated Distribution Upon Termination Pursuant to the Agreement of Limited Partnership, as amended, of our operating partnership upon termination or non-renewal of the Advisory Agreement, our advisor will also be entitled to a subordinated distribution in redemption of its limited partnership units from our operating partnership equal to 15.0% of the amount, if any, by which: (i) the appraised value of our assets on the termination date, less any indebtedness secured by such assets, plus total distributions paid through the termination date, exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the total amount of cash equal to an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the termination date. In addition, our advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing or other liquidity event, including a liquidation, sale of substantially all of our assets or merger in which our stockholders receive in exchange for their shares of our common stock, shares of a company that are traded on a national securities exchange. As of September 30, 2017 and December 31, 2016, we had not recorded any charges to earnings related to the subordinated distribution upon termination. Stock Purchase Plans On February 29, 2016, our Chief Executive Officer and Chairman of the Board of Directors, Jeffrey T. Hanson, our President and Chief Operating Officer, Danny Prosky, and our Executive Vice President and General Counsel, Mathieu B. Streiff, each executed stock purchase plans, or the 2016 Stock Purchase Plans, whereby they each irrevocably agreed to invest 100% of their net after-tax base salary and cash bonus compensation earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class T common stock. In addition, on February 29, 2016, three Executive Vice Presidents of American Healthcare Investors during 2016, including our Executive Vice President of Acquisitions, Stefan K.L. Oh, each executed similar 2016 Stock Purchase Plans whereby they each irrevocably agreed to invest a portion of their net after-tax base salary or a portion of their net after-tax base salary and cash bonus compensation, ranging from 10.0% to 15.0%, earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class T common stock. The 2016 Stock Purchase Plans terminated on December 31, 2016. Purchases of shares of our Class T common stock pursuant to the 2016 Stock Purchase Plans commenced after the initial release from escrow of the minimum offering amount, beginning with the officers’ regularly scheduled payroll payment on April 13, 2016. The shares of Class T common stock were purchased at a price of $9.60 per share, reflecting the purchase price of the Class T shares in our offering, exclusive of selling commissions and the portion of the dealer manager fee funded by us. On December 30, 2016, Messrs. Hanson, Prosky and Streiff each executed stock purchase plans for the purchase of shares of our Class I common stock, or the 2017 Stock Purchase Plans, on terms similar to their 2016 Stock Purchase Plans. In addition, on December 30, 2016, Mr. Oh, as well as Wendie Newman and Christopher M. Belford, both of whom were appointed as our Vice Presidents of Asset Management as of June 2017, each executed similar 2017 Stock Purchase Plans whereby they each irrevocably agreed to invest a portion of their net after-tax base salary or a portion of their net after-tax base salary and cash bonus compensation, ranging from 5.0% to 15.0%, earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class I common stock. The 2017 Stock Purchase Plans terminate on December 31, 2017 or earlier upon the occurrence of certain events, such as any earlier termination of our public offering of securities, unless otherwise renewed or extended. Purchases of shares of our Class I common stock pursuant to the 2017 Stock Purchase Plans commenced beginning with the officers’ regularly scheduled payroll payment on January 23, 2017. The shares of Class I common stock are purchased pursuant to the 2017 Stock Purchase Plans at a price of $9.21 per share, reflecting the purchase price of the Class I shares in our offering. No selling commissions, dealer manager fees (including the portion of such dealer manager fees funded by our advisor) or stockholder servicing fees will be paid with respect to such sales of our Class I common stock. For the three and nine months ended September 30, 2017 and 2016, our officers invested the following amounts and we issued the following shares of our Class T and Class I common stock pursuant to the applicable stock purchase plan:
Accounts Payable Due to Affiliates The following amounts were outstanding to our affiliates as of September 30, 2017 and December 31, 2016:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements Financial Instruments Disclosed at Fair Value ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments, whether or not recognized on the face of the balance sheet. Fair value is defined under ASC Topic 820, Fair Value Measurements and Disclosures. Our accompanying condensed consolidated balance sheets include the following financial instruments: cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits, accounts payable and accrued liabilities, accounts payable due to affiliates, mortgage loans payable and borrowings under the Line of Credit. We consider the carrying values of cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits and accounts payable and accrued liabilities to approximate the fair values for these financial instruments based upon an evaluation of the underlying characteristics, market data and because of the short period of time between origination of the instruments and their expected realization. The fair value of cash and cash equivalents is classified in Level 1 of the fair value hierarchy. The fair value of accounts payable due to affiliates is not determinable due to the related party nature of the accounts payable. The fair value of the other financial instruments is classified in Level 2 of the fair value hierarchy. The fair value of our mortgage loans payable and the Line of Credit is estimated using a discounted cash flow analysis using borrowing rates available to us for debt instruments with similar terms and maturities. As of September 30, 2017 and December 31, 2016, the fair value of our mortgage loans payable was $11,950,000 and $4,131,000, respectively, compared to the carrying value of $11,639,000 and $3,965,000, respectively. As of September 30, 2017 and December 31, 2016, the fair value of the Line of Credit was $25,998,000 and $33,899,000, respectively, compared to the carrying value of $25,290,000 and $32,957,000, respectively. We have determined that our mortgage loans payable and the Line of Credit are classified in Level 2 within the fair value hierarchy. |
Business Combinations |
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Business Combinations | 14. Business Combinations For the nine months ended September 30, 2017, none of our property acquisitions were accounted for as business combinations. See Note 3, Real Estate Investments, Net, for a discussion of our 2017 property acquisitions accounted for as asset acquisitions. For the nine months ended September 30, 2016, using net proceeds from our offering and debt financing, we completed five property acquisitions comprising five buildings, which were accounted for as business combinations. The aggregate contract purchase price for these property acquisitions was $59,670,000, plus closing costs and base acquisition fees of $2,005,000, which are included in acquisition related expenses in our accompanying condensed consolidated statements of operations. In addition, we incurred Contingent Advisor Payments of $1,342,000 to our advisor for these property acquisitions. See See Note 12, Related Party Transactions, for a further discussion of the Contingent Advisor Payment. Results of operations for these property acquisitions during the nine months ended September 30, 2016 are reflected in our accompanying condensed consolidated statements of operations for the period from the date of acquisition of each property through September 30, 2016. For the period from the acquisition date through September 30, 2016, we recognized the following amounts of revenue and net income for the property acquisitions:
The following table summarizes the acquisition date fair values of our five property acquisitions in 2016:
Assuming the property acquisitions in 2016 discussed above had occurred on January 23, 2015 (Date of Inception), for the three and nine months ended September 30, 2016, unaudited pro forma revenue, net income, net income attributable to controlling interest and net income per Class T and Class I common share attributable to controlling interest — basic and diluted would have been as follows:
The unaudited pro forma adjustments assume that the offering proceeds, at a price of $10.00 per share, net of offering costs, were raised as of January 23, 2015 (Date of Inception). In addition, acquisition related expenses associated with our five property acquisitions have been excluded from the pro forma results in 2016. The pro forma results are not necessarily indicative of the operating results that would have been obtained had the acquisitions occurred at the beginning of the periods presented, nor are they necessarily indicative of future operating results. |
Segment Reporting |
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Segment Reporting | 15. Segment Reporting ASC Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016 and senior housing facility in December 2016, we established a new reportable segment at each such time. As of September 30, 2017, we evaluated our business and made resource allocations based on two reportable business segments — medical office buildings and senior housing. Our medical office buildings are typically leased to multiple tenants under separate leases in each building, thus requiring active management and responsibility for many of the associated operating expenses (although many of these are, or can effectively be, passed through to the tenants). Our senior housing facilities are primarily single-tenant properties for which we lease the facilities to unaffiliated tenants under “triple-net” and generally “master” leases that transfer the obligation for all facility operating costs (including maintenance, repairs, taxes, insurance and capital expenditures) to the tenant. We evaluate performance based upon segment net operating income. We define segment net operating income as total revenues, less rental expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses, interest expense and interest income for each segment. We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment net operating income serves as an appropriate supplemental performance measure to net income (loss) because it allows investors and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. Interest expense, depreciation and amortization and other expenses not attributable to individual properties are not allocated to individual segments for purposes of assessing segment performance. Non-segment assets primarily consist of corporate assets including cash and cash equivalents, other receivables, real estate deposits and other assets not attributable to individual properties. Summary information for the reportable segments during the three and nine months ended September 30, 2017 and 2016 was as follows:
Assets by reportable segment as of September 30, 2017 and December 31, 2016 were as follows:
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Concentration of Credit Risk |
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Concentration of Credit Risk | 16. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk are primarily cash and cash equivalents, accounts and other receivables, restricted cash and real estate deposits. Cash and cash equivalents are generally invested in investment-grade, short-term instruments with a maturity of three months or less when purchased. We have cash and cash equivalents in financial institutions that are insured by the Federal Deposit Insurance Corporation, or FDIC. As of September 30, 2017 and December 31, 2016, we had cash and cash equivalents in excess of FDIC insured limits. We believe this risk is not significant. Concentration of credit risk with respect to accounts receivable from tenants is limited. In general, we perform credit evaluations of prospective tenants and security deposits are obtained at the time of property acquisition and upon lease execution. Based on leases in effect as of September 30, 2017, three states in the United States accounted for 10.0% or more of our annualized base rent of our total property portfolio. Our properties located in Nevada, Alabama and California accounted for approximately 17.2%, 15.3% and 12.6%, respectively, of the annualized base rent of our total property portfolio. Accordingly, there is a geographic concentration of risk subject to fluctuations in each state’s economy. As of September 30, 2017, we had two tenants that accounted for 10.0% or more of our annualized base rent, as follows:
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Earnings Per Share [Abstract] | |
Per Share Data | 17. Per Share Data We report earnings (loss) per share pursuant to ASC Topic 260, Earnings per Share. Basic earnings (loss) per share for all periods presented are computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of our common stock outstanding during the period. Net income (loss) applicable to common stock is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of $4,000 and $2,000 for the three months ended September 30, 2017 and 2016, respectively. Net income (loss) applicable to common stock is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of $8,000 and $3,000 for the nine months ended September 30, 2017 and 2016, respectively. Diluted earnings (loss) per share are computed based on the weighted average number of shares of our common stock and all potentially dilutive securities, if any. Nonvested shares of our restricted common stock and redeemable limited partnership units of our operating partnership are participating securities and give rise to potentially dilutive shares of our common stock. As of September 30, 2017 and 2016, there were 27,000 and 12,000 nonvested shares, respectively, of our restricted Class T common stock outstanding, but such shares were excluded from the computation of diluted earnings (loss) per share because such shares were anti-dilutive during these periods. As of September 30, 2017 and 2016, there were 208 units of redeemable limited partnership units of our operating partnership outstanding, but such units were excluded from the computation of diluted earnings per share because such units were anti-dilutive during these periods. |
Subsequent Events |
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Subsequent Events | 18. Subsequent Events Status of Our Offering As of November 3, 2017, we had received and accepted subscriptions in our offering for 37,774,078 aggregate shares of our Class T and Class I common stock, or $375,913,000, excluding shares of our common stock issued pursuant to the DRIP. Amendment to the Credit Agreement with Bank of America and KeyBank On October 31, 2017, we entered into an amendment to the Credit Agreement, or the Amendment, with Bank of America, as administrative agent, and the subsidiary guarantors and lenders named therein. The material terms of the Amendment provide for: (i) a $50,000,000 increase in the Line of Credit from an aggregate principal amount of $100,000,000 to $150,000,000; (ii) a term loan with an aggregate maximum principal amount of $50,000,000, or the Term Loan Credit Facility, that matures on August 25, 2019, and may be extended for one 12-month period during the term of the Credit Agreement subject to satisfaction of certain conditions, including payment of an extension fee; (iii) our right, upon at least five business days’ prior written notice to Bank of America, to increase the Line of Credit or Term Loan Credit Facility, provided that the aggregate principal amount of all such increases and additions shall not exceed $300,000,000; (iv) a revision to the definition of Threshold Amount, as defined in the Credit Agreement, to reflect an increase in such amount for any Recourse Indebtedness, as defined in the Credit Agreement, to $20,000,000, and an increase in such amount for any Non-Recourse Indebtedness, as defined in the Credit Agreement, to $50,000,000; (v) the revision of certain Unencumbered Property Pool Criteria, as defined and set forth in the Credit Agreement; and (vii) an increase in the maximum Consolidated Secured Leverage Ratio, as defined in the Credit Agreement, to be equal to or less than 40.0%. The aggregate borrowing capacity under the credit facilities was $200,000,000 as of October 31, 2017. Property Acquisition Subsequent to September 30, 2017, we completed one property acquisition comprising ten buildings from unaffiliated third parties and established a new reportable segment, senior housing — RIDEA, at such time. The following is a summary of our property acquisition subsequent to September 30, 2017:
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership and the wholly owned subsidiaries of our operating partnership, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810. We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership, Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation. |
Interim Unaudited Financial Data | Interim Unaudited Financial Data Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2016 Annual Report on Form 10-K, as filed with the SEC on March 1, 2017. |
Use of Estimates | Use of Estimates The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts Tenant receivables and unbilled deferred rent receivables are carried net of an allowance for uncollectible amounts. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. We also maintain an allowance for deferred rent receivables arising from the straight line recognition of rents. Such allowances are charged to bad debt expense, which is included in general and administrative in our accompanying condensed consolidated statements of operations. Our determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. |
Property Acquisitions | Property Acquisitions In accordance with ASC Topic 805, Business Combinations, and Accounting Standards Update, or ASU, 2017-01, Clarifying the Definition of a Business, or ASU 2017-01, we determine whether a transaction is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired and liabilities assumed are not a business, we account for the transaction as an asset acquisition. Under both methods, we recognize the identifiable assets acquired and liabilities assumed; however, for a transaction accounted for as an asset acquisition, we allocate the purchase price to the identifiable assets acquired and liabilities assumed based on their relative fair values. We immediately expense acquisition related expenses associated with a business combination and capitalize acquisition related expenses directly associated with an asset acquisition. |
Real Estate Deposits | Real Estate Deposits Real estate deposits include refundable and non-refundable funds held by escrow agents and others to be applied towards the acquisition of real estate investments, and such future investments are subject to substantial conditions to closing. |
Recently Issued Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as codified in ASC Topic 606, which replaces the existing accounting standards for revenue recognition. ASC Topic 606 provides a five-step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. ASC Topic 606 is effective for interim and annual reporting periods beginning after December 15, 2017. Currently, our primary source of revenue is generated through leasing arrangements, which are excluded from ASC Topic 606; however, we expect that the adoption of ASC Topic 606 on January 1, 2018 will impact the recognition of common area maintenance from our current leasing arrangements and certain elements of resident fees (including revenues that are ancillary to the contractual rights of residents) for any healthcare-related facilities we may acquire and operate in the future utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a “RIDEA” structure (the provisions of the Code authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We will not apply the principles of ASC Topic 606 to our common area maintenance revenues and certain elements of resident fees to the extent they qualified as lease revenues until January 1, 2019, when we adopt ASU 2016-02, Leases, or ASU 2016-02. We have not yet selected a transition method and we expect to complete our evaluation of the impact of the adoption of ASC Topic 606 and its amendments on our consolidated financial statements during the fourth quarter of 2017. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01, which amends the classification and measurement of financial instruments. ASU 2016-01 revises the accounting related to: (i) the classification and measurement of investments in equity securities; and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, with respect to only certain of the amendments in ASU 2016-01, for financial statements that have not yet been made available for issuance. ASU 2016-01 requires the application of the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with certain exceptions. We do not expect the adoption of ASU 2016-01 on January 1, 2018 to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASC Topic 606. The disaggregated disclosure of lease and executory non-lease components (e.g., maintenance) will be required upon the adoption of ASU 2016-02. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with a few optional practical expedients. As a result of the adoption of ASU 2016-02 on January 1, 2019, we will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets and will capitalize fewer legal costs related to the drafting and execution of our lease agreements. We are still evaluating the transition method including the practical expedient offered in ASU 2016-02. We are also evaluating the complete impact of the adoption of ASU 2016-02 on January 1, 2019 to our consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, or ASU 2016-15, which intends to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of ASU 2016-15 on January 1, 2018 to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, or ASU 2016-16, which removes the prohibition in ASC 740, Income Taxes, against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. We do not expect the adoption of ASU 2016-16 on January 1, 2018 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, or ASU 2017-04, which eliminates Step 2 from the goodwill impairment test and allows an entity to perform its goodwill impairment test by comparing the fair value of a reporting segment with its carrying amount. ASU 2017-04 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. We early adopted ASU 2017-04 on January 1, 2017, which did not have an impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, or ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Modification accounting is only applied if the value, the vesting conditions or the classification of the award (or equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 is effective for fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 on January 1, 2018 to have a material impact on our consolidated financial statements. |
Real Estate Investments, Net (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Real Estate Investments Table | Our real estate investments, net consisted of the following as of September 30, 2017 and December 31, 2016:
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Schedule Of Acquisitions Of Properties Table | Acquisitions in 2017 For the nine months ended September 30, 2017, using net proceeds from our offering and debt financing, we completed eight property acquisitions comprising 18 buildings from unaffiliated third parties. The aggregate contract purchase price of these properties was $217,820,000 and we incurred $9,802,000 in total acquisition fees to our advisor in connection with these property acquisitions. The following is a summary of our property acquisitions for the nine months ended September 30, 2017:
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Subsequent to September 30, 2017, we completed one property acquisition comprising ten buildings from unaffiliated third parties and established a new reportable segment, senior housing — RIDEA, at such time. The following is a summary of our property acquisition subsequent to September 30, 2017:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our eight property acquisitions in 2017 based on their relative fair values:
The following table summarizes the acquisition date fair values of our five property acquisitions in 2016:
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Identified Intangible Assets, Net (Tables) |
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Identified intangible assets, net consisted of the following as of September 30, 2017 and December 31, 2016:
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Amortization expense on identified intangible assets | As of September 30, 2017, estimated amortization expense on the identified intangible assets for the three months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter was as follows:
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Other Assets, Net (Tables) |
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Other Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets, net consisted of the following as of September 30, 2017 and December 31, 2016:
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Mortgage Loans Payable, Net (Tables) |
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Mortgage Loans Payable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity Related to Notes Payable | The changes in the carrying amount of mortgage loans payable, net consisted of the following for the nine months ended September 30, 2017 and 2016:
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Schedule of Maturities of Long-term Debt | As of September 30, 2017, the principal payments due on our mortgage loans payable for the three months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter were as follows:
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Identified Intangible Liabilities, Net (Tables) |
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Identified Intangible Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Liabilities, Net | Identified intangible liabilities, net consisted of the following as of September 30, 2017 and December 31, 2016:
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Schedule Of Expected Amortization Expense Intangible Liabilities Table | As of September 30, 2017, estimated amortization expense on identified intangible liabilities for the three months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter was as follows:
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Redeemable Noncontrolling Interest (Tables) |
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Temporary Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The changes in the carrying amount of redeemable noncontrolling interest consisted of the following for the nine months ended September 30, 2017 and 2016:
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Equity (Tables) |
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Share-Based Compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the status of the nonvested shares of our restricted Class T common stock as of September 30, 2017 and December 31, 2016 and the changes for the nine months ended September 30, 2017 is presented below:
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Related Party Transactions (Tables) |
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Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | For the three and nine months ended September 30, 2017 and 2016, our officers invested the following amounts and we issued the following shares of our Class T and Class I common stock pursuant to the applicable stock purchase plan:
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Schedule Of Amount Outstanding To Affiliates Table | Accounts Payable Due to Affiliates The following amounts were outstanding to our affiliates as of September 30, 2017 and December 31, 2016:
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Business Combinations (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Revenue and Net income/Loss [Table Text Block] | For the period from the acquisition date through September 30, 2016, we recognized the following amounts of revenue and net income for the property acquisitions:
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our eight property acquisitions in 2017 based on their relative fair values:
The following table summarizes the acquisition date fair values of our five property acquisitions in 2016:
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Business Acquisition, Pro Forma Information [Table Text Block] | Assuming the property acquisitions in 2016 discussed above had occurred on January 23, 2015 (Date of Inception), for the three and nine months ended September 30, 2016, unaudited pro forma revenue, net income, net income attributable to controlling interest and net income per Class T and Class I common share attributable to controlling interest — basic and diluted would have been as follows:
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Segment Reporting (Tables) |
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Segment Reporting Information Line Items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Summary information for the reportable segments during the three and nine months ended September 30, 2017 and 2016 was as follows:
|
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Reconciliation of Assets from Segment to Consolidated | Assets by reportable segment as of September 30, 2017 and December 31, 2016 were as follows:
|
Concentration of Credit Risk (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor | As of September 30, 2017, we had two tenants that accounted for 10.0% or more of our annualized base rent, as follows:
|
Subsequent Events (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Acquisitions Of Properties Table | Acquisitions in 2017 For the nine months ended September 30, 2017, using net proceeds from our offering and debt financing, we completed eight property acquisitions comprising 18 buildings from unaffiliated third parties. The aggregate contract purchase price of these properties was $217,820,000 and we incurred $9,802,000 in total acquisition fees to our advisor in connection with these property acquisitions. The following is a summary of our property acquisitions for the nine months ended September 30, 2017:
___________
Subsequent to September 30, 2017, we completed one property acquisition comprising ten buildings from unaffiliated third parties and established a new reportable segment, senior housing — RIDEA, at such time. The following is a summary of our property acquisition subsequent to September 30, 2017:
___________
|
Summary of Significant Accounting Policies Summary of Accounting Policies (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | 20 Months Ended |
---|---|---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
Acquisition
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Acquisition
|
|
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 8 | 17 | ||
Real estate deposits | $ 5,021,000 | $ 5,021,000 | $ 200,000 | $ 5,021,000 |
Allowance for Doubtful Accounts Receivable | 94,000 | 94,000 | $ 0 | 94,000 |
Direct Write Offs Of Deferred Rent Receivable | 0 | $ 2,000 | ||
Percentage of ownership in operating partnership | 99.99% | 99.99% | ||
Percentage of limited partnership interest | 0.01% | 0.01% | ||
2017 Acquisitions [Member] | ||||
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 8 | |||
Non-refundable real estate deposits [Member] | ||||
Real estate deposits | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
Summary of Significant Accounting Policies Summary of Accounting Policies Phantom (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Summary of Accounting Policies Phantom [Abstract] | ||
Percentage of ownership in operating partnership | 99.99% | 99.99% |
Percentage of limited partnership interest | 0.01% | 0.01% |
Real Estate Investments, Net - Investments in Consolidated Properties (Detail) - USD ($) |
9 Months Ended | 20 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Real Estate Properties [Line Items] | |||
Real estate investment, at cost | $ 324,867,000 | $ 324,867,000 | $ 118,764,000 |
Less: accumulated depreciation | (5,925,000) | (5,925,000) | (822,000) |
Real estate investments, net | 318,942,000 | 318,942,000 | 117,942,000 |
Building and Building Improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate investment, at cost | 285,481,000 | 285,481,000 | 106,442,000 |
Land [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate investment, at cost | $ 39,386,000 | $ 39,386,000 | $ 12,322,000 |
Advisor [Member] | |||
Real Estate Properties [Line Items] | |||
Contingent Advisor Payment Fee | 2.25% | 2.25% | |
Base Acquisition Fee For Property Acquired | 2.25% | 2.25% |
Real Estate Investments, Net - Assets and Liabilities Acquired (Details) - 2017 Acquisitions [Member] |
Sep. 30, 2017
USD ($)
|
---|---|
Building and Improvements | $ 177,270,000 |
Land | 27,064,000 |
Total assets acquired | 224,979,000 |
Total liabilities assumed | 8,966,000 |
Net assets acquired | 216,013,000 |
In-Place Leases [Member] | |
In-place leases | 20,518,000 |
Above Market Leases [Member] | |
Above-market leases | 127,000 |
Mortgage Loans Payable, Net [Member] | |
Mortgage loan payable | 8,000,000 |
Below Market Lease [Member] | |
Below-market Leases | 571,000 |
Above-market leasehold interest [Member] | |
Above-market leasehold interests | $ 395,000 |
Identified Intangible Assets - Summary of Identified Intangibles (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, net | $ 37,635,000 | $ 19,673,000 |
In-Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 30,517,000 | 12,504,000 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | 6,317,000 | 6,390,000 |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | $ 801,000 | $ 779,000 |
Identified Intangible Assets - Summary of Amortization Expense on Identified Intangible Assets, Net (Detail) |
Sep. 30, 2017
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
2017 | $ 1,310,000 |
2018 | 4,863,000 |
2019 | 4,400,000 |
2020 | 3,862,000 |
2021 | 3,466,000 |
Thereafter | 19,734,000 |
Identified intangible assets, net | $ 37,635,000 |
Other Assets, Net - Other Assets, Net (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Assets [Abstract] | ||
Prepaid expense and deposits | $ 1,968,000 | $ 257,000 |
Deferred rent receivables | 1,330,000 | 207,000 |
Deferred financing costs, net of accumulated amortization of $379,000 and $112,000 as of September 30, 2017 and December 31, 2016, respectively(1) | 710,000 | 943,000 |
Lease commissions, net of accumulated amortization | 134,000 | 0 |
Other assets, net | $ 4,142,000 | $ 1,407,000 |
Other Assets, Net - Additional Information (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Assets [Abstract] | ||||
Amortization of Debt Issuance Costs | $ 90,000 | $ 27,000 | $ 267,000 | $ 27,000 |
Amortization Expense On Lease Commissions | $ 3,000 | $ 0 | $ 3,000 | $ 0 |
Other Assets, Net Other Assets, Net (Phantom) (Details) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Assets, Net (Phantom) [Abstract] | ||
Accumulated Amortization, Debt Issuance Costs | $ 379,000 | $ 112,000 |
Accumulated Amortization, Lease Inducements | $ 3,000 | $ 0 |
Mortgage Loans Payable, Net - Additional Information (Detail) |
Sep. 30, 2017
USD ($)
MortgageLoan
|
Dec. 31, 2016
USD ($)
MortgageLoan
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
||||
---|---|---|---|---|---|---|---|---|
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans payable, gross | $ 11,718,000 | $ 3,908,000 | ||||||
Mortgage loans payable, net | $ 11,639,000 | [1] | $ 3,965,000 | [1] | $ 3,847,000 | $ 0 | ||
Number Of Fixed Rate Mortgage Loans Payable | MortgageLoan | 2 | 1 | ||||||
Minimum [Member] | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.77% | 5.25% | ||||||
Maximum [Member] | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.25% | |||||||
Mortgage Loans Payable, Net [Member] | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Debt, Weighted Average Interest Rate | 4.92% | |||||||
|
Mortgage Loans Payable, Net - Mortgage Loans Payable (Detail) - USD ($) |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
||||
Change in Carrying Amount of Mortgage Loans Payable [Roll Forward] | |||||
Beginning balance | $ 3,965,000 | [1] | $ 0 | ||
Borrowings and assumptions on mortgage loans payable, net | 8,000,000 | 3,968,000 | |||
Amortization of deferred financing costs related to mortgage | 23,000 | 0 | |||
Capitalized deferred financing costs for mortgages | (151,000) | (102,000) | |||
Payments on mortgage loan payable | (189,000) | (19,000) | |||
Amortization of Debt Discount (Premium) | (9,000) | 0 | |||
Ending balance | $ 11,639,000 | [1] | $ 3,847,000 | ||
|
Mortgage Loans Payable - Principal Payments Due on Mortgage Loans Payable (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Mortgage Loans on Real Estate [Abstract] | ||
2017 | $ 84,000 | |
2018 | 386,000 | |
2019 | 407,000 | |
2020 | 8,035,000 | |
2021 | 314,000 | |
Thereafter | 2,492,000 | |
Total | $ 11,718,000 | $ 3,908,000 |
Mortgage Loans Payable, Net Mortgage Loan Payable Phantom (Details) |
Sep. 30, 2017
USD ($)
MortgageLoan
|
Dec. 31, 2016
USD ($)
MortgageLoan
|
---|---|---|
Mortgage loans payable, gross | $ | $ 11,718,000 | $ 3,908,000 |
Number Of Fixed Rate Mortgage Loans Payable | MortgageLoan | 2 | 1 |
Minimum [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.77% | 5.25% |
Identified Intangible Liabilities, Net - Summary of Identified Intangibles, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite Lived Intangible Liabilities [Line Items] | ||
Identified intangible liabilities, net | $ 1,822 | $ 1,063 |
Below Market Lease [Member] | ||
Finite Lived Intangible Liabilities [Line Items] | ||
Identified intangible liabilities, net | 1,431 | 1,063 |
Above-market leasehold interest [Member] | ||
Finite Lived Intangible Liabilities [Line Items] | ||
Identified intangible liabilities, net | $ 391 | $ 0 |
Identified Intangible Liabilities, Net - Summary of Amortization Expense on Below Market Leases (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Intangible Liabilities [Abstract] | ||
2017 | $ 85,000 | |
2018 | 338,000 | |
2019 | 310,000 | |
2020 | 147,000 | |
2021 | 125,000 | |
Thereafter | 817,000 | |
Identified intangible liabilities, net | $ 1,822,000 | $ 1,063,000 |
Identified Intangible Liabilities, Net Identified Intangible Liabilities, Net (Phantom) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Amortization of Identified Intangible Liabilities | $ 70,000 | $ 0 | $ 207,000 | $ 0 | |
Finite Lived Intangible Liabilities Useful Life | 16 years 4 months 24 days | 5 years 4 months 24 days | |||
Below Market Lease [Member] | |||||
Amortization of above and below Market Leases | 68,000 | $ 203,000 | |||
Finite Lived Intangible Liabilities Accumulated Amortization | 263,000 | $ 263,000 | $ 60,000 | ||
Finite Lived Intangible Liabilities Useful Life | 6 years 7 months 6 days | 5 years 4 months 24 days | |||
Above-market leasehold interest [Member] | |||||
Finite Lived Intangible Liabilities Accumulated Amortization | 4,000 | $ 4,000 | $ 0 | ||
Finite Lived Intangible Liabilities Useful Life | 52 years 4 months 24 days | 0 days | |||
Amortization of above market leasehold interest | $ 2,000 | $ 4,000 |
Redeemable Noncontrolling Interest (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Redeemable Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 99.99% | 99.99% | 99.99% | ||
Noncontrolling limited partnership interest in operating partnership | 0.01% | 0.01% | 0.01% | ||
Changes in the carrying amount of redeemable noncontrolling interest [Roll Forward] | |||||
Beginning balance | $ 2,000 | $ 0 | |||
Reclassification from equity | 0 | 2,000 | |||
Net income (loss) attributable to redeemable noncontrolling interest | $ 0 | $ 0 | 0 | 0 | |
Ending balance | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,000 |
Redeemable Noncontrolling Interest Redeemable Noncontrolling Interest (Phantom) (Details) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Noncontrolling Interest Phantom [Abstract] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 99.99% | 99.99% |
Noncontrolling limited partnership interest in operating partnership | 0.01% | 0.01% |
Equity (Detail) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | 13 Months Ended | 18 Months Ended | 20 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Oct. 22, 2015
shares
|
Nov. 03, 2017
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Feb. 28, 2017 |
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Mar. 01, 2017
$ / shares
|
Jan. 23, 2017
$ / shares
|
Jun. 17, 2016
USD ($)
$ / shares
|
Apr. 13, 2016 |
Feb. 16, 2016
USD ($)
$ / shares
|
Feb. 12, 2016
shares
|
Dec. 31, 2015
shares
|
Feb. 06, 2015
USD ($)
|
|
Net Income (Loss) Attributable to Parent | $ | $ 754,000 | $ (2,092,000) | $ 1,290,000 | $ (2,855,000) | ||||||||||||||||
Preferred Stock, Shares Authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Number of shares of common stock, authorized to be issued | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Par value of common stock to be offered and sold to the public | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Aggregate Maximum Amount Of Common Stock Issuable Under Public Offering | $ | $ 3,150,000,000 | |||||||||||||||||||
Maximum percentage of common stock repurchased during period | 5.00% | |||||||||||||||||||
Share repurchase plan holding period | 1 year | |||||||||||||||||||
Share repurchase plan percentage of price per-share condition one | 92.50% | 92.50% | 92.50% | 92.50% | 92.50% | |||||||||||||||
Share repurchase plan percentage of price per-share condition two | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||||||||||||
Issuance of common stock under the DRIP | $ | $ 2,618,000 | $ 5,492,000 | 222,000 | |||||||||||||||||
Stock based compensation | $ | $ 100,000 | 66,000 | ||||||||||||||||||
Issuance of vested and nonvested restricted common stock, shares | shares | 22,500 | 37,500 | ||||||||||||||||||
Common Stock Repuchased During Period Under Share Repurchase Plan Shares | shares | 11,209 | 18,383 | 18,383 | |||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 668,035 | 83,717 | 668,035 | |||||||||||||||||
Proceeds from Issuance of Common Stock, Dividend Reinvestment Plan | $ | $ 6,288,000 | $ 796,000 | ||||||||||||||||||
Selling commissions percentage | 3.00% | |||||||||||||||||||
Selling Commissions Expenses | $ | $ 2,059,000 | 1,012,000 | $ 6,763,000 | 1,392,000 | ||||||||||||||||
Maximum percentage of dealer manager fee | 3.00% | 3.00% | ||||||||||||||||||
Percentage Of Dealer Manager Fee | 1.00% | 1.00% | 1.00% | |||||||||||||||||
Dealer Manager Fees | $ | 689,000 | 370,000 | $ 2,311,000 | 521,000 | ||||||||||||||||
Stockholder daily servicing fee percentage | 1.00% | |||||||||||||||||||
Maximum percentage of stockholder servicing fee | 4.00% | |||||||||||||||||||
Stockholder Servicing Fee Incurred | $ | 2,430,000 | 1,349,000 | $ 8,568,000 | 1,856,000 | ||||||||||||||||
Stockholder Servicing Fee Payable | $ | $ 11,496,000 | 11,496,000 | 11,496,000 | $ 3,973,000 | $ 3,973,000 | $ 11,496,000 | $ 11,496,000 | |||||||||||||
Stock Repuchased During Period Value Under the Share Repurchase Plan Value | $ | $ 109,000 | $ 178,000 | $ 178,000 | |||||||||||||||||
Stock Acquired Average Cost Per Share | $ / shares | $ 9.69 | $ 9.68 | $ 9.68 | |||||||||||||||||
Common Class T [Member] | ||||||||||||||||||||
Number of shares of common stock, authorized to be issued | shares | 900,000,000 | 900,000,000 | 900,000,000 | 900,000,000 | 900,000,000 | 900,000,000 | 900,000,000 | |||||||||||||
Par value of common stock to be offered and sold to the public | $ / shares | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Reallocated Maximum Amount Of Common Stock Issuable Under Primary Public Offering | $ | $ 2,800,000,000 | |||||||||||||||||||
Share price | $ / shares | $ 10.00 | $ 10.00 | ||||||||||||||||||
Subscriptions in offering of common stock received and accepted shares | shares | 35,522,410 | |||||||||||||||||||
Common stock, shares, issued | shares | 34,346,388 | 34,346,388 | 34,346,388 | 11,000,433 | 11,000,433 | 34,346,388 | 34,346,388 | |||||||||||||
Common stock, shares outstanding | shares | 34,346,388 | 34,346,388 | 34,346,388 | 11,000,433 | 11,000,433 | 34,346,388 | 34,346,388 | |||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ | $ 3,000,000,000 | |||||||||||||||||||
Shares, Issued | shares | 20,833 | 20,833 | 20,833 | 20,833 | 20,833 | 20,833 | 20,833 | |||||||||||||
Distribution Reinvestment Plan [Member] | ||||||||||||||||||||
Share price | $ / shares | $ 9.40 | $ 9.50 | ||||||||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ | $ 150,000,000 | |||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 278,520 | 584,318 | ||||||||||||||||||
Common Class I [Member] | ||||||||||||||||||||
Number of shares of common stock, authorized to be issued | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||
Par value of common stock to be offered and sold to the public | $ / shares | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Reallocated Maximum Amount Of Common Stock Issuable Under Primary Public Offering | $ | $ 200,000,000 | |||||||||||||||||||
Share price | $ / shares | $ 9.21 | $ 9.21 | $ 9.30 | |||||||||||||||||
Common stock, shares, issued | shares | 1,884,007 | 1,884,007 | 1,884,007 | 377,006 | 377,006 | 1,884,007 | 1,884,007 | |||||||||||||
Common stock, shares outstanding | shares | 1,884,007 | 1,884,007 | 1,884,007 | 377,006 | 377,006 | 1,884,007 | 1,884,007 | |||||||||||||
Maximum percentage of dealer manager fee | 1.50% | |||||||||||||||||||
Griffin American Advisor [Member] | Common Class T [Member] | ||||||||||||||||||||
Value of stock purchased | $ | $ 200,000 | |||||||||||||||||||
Advisor [Member] | ||||||||||||||||||||
Percentage Of Dealer Manager Fee | 2.00% | 2.00% | ||||||||||||||||||
Two Thousand Fifteen Incentive Plan [Member] | Common Stock [Member] | ||||||||||||||||||||
Share price | $ / shares | $ 10.00 | |||||||||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | shares | 4,000,000 | |||||||||||||||||||
Two Thousand Fifteen Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||||
Allocated Share-based Compensation Expense | $ | $ 61,000 | 14,000 | $ 100,000 | 66,000 | ||||||||||||||||
Total unrecognized compensation expense | $ | $ 195,000 | 195,000 | 195,000 | $ 70,000 | $ 70,000 | $ 195,000 | $ 195,000 | |||||||||||||
Allocated share based unrecognized compensation expense net of estimated forfeitures weighted average remaining period | 2 years | |||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Fair Value | $ | $ 270,000 | $ 270,000 | 270,000 | $ 120,000 | $ 120,000 | $ 270,000 | $ 270,000 | |||||||||||||
Two Thousand Fifteen Incentive Plan [Member] | Restricted Stock [Member] | Re-elected or Newly Elected Independent Directors [Member] | ||||||||||||||||||||
Issuance of vested and nonvested restricted common stock, shares | shares | 22,500 | |||||||||||||||||||
Share based compensation arrangement by share based payment award equity instruments other than options vesting percentage | 20.00% | |||||||||||||||||||
Share based compensation arrangement by share based payment award equity instruments other than options vesting percentage on anniversary of grant date | 20.00% | |||||||||||||||||||
Number of anniversaries of grant date to vest | 4 | |||||||||||||||||||
Two Thousand Fifteen Incentive Plan [Member] | Restricted Stock [Member] | Independent Director [Member] | ||||||||||||||||||||
Issuance of vested and nonvested restricted common stock, shares | shares | 15,000 | |||||||||||||||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||||||||||||||
Subscriptions in offering of common stock received and accepted shares | shares | 37,774,078 | |||||||||||||||||||
Limited Partner [Member] | ||||||||||||||||||||
Stockholders equity attributable to noncontrolling interest | $ | $ 2,000 | |||||||||||||||||||
Stock Issued During Period, Shares, Stock Splits | shares | 208 | |||||||||||||||||||
Parent [Member] | ||||||||||||||||||||
Net Income (Loss) Attributable to Parent | $ | (2,855,000) | |||||||||||||||||||
Issuance of common stock under the DRIP | $ | $ 203,000 | 5,492,000 | $ 222,000 | |||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||
Issuance of common stock under the DRIP | $ | $ 6,000 | |||||||||||||||||||
Issuance of common stock, shares | shares | 24,264,521 | 5,374,861 | ||||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 21,376 | 584,318 | 23,379 | |||||||||||||||||
Shares, Issued | shares | 36,230,395 | 36,230,395 | 5,434,073 | 36,230,395 | 5,434,073 | 11,377,439 | 11,377,439 | 36,230,395 | 36,230,395 | 20,833 |
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock (Detail) |
9 Months Ended | 18 Months Ended |
---|---|---|
Sep. 30, 2017
$ / shares
shares
|
Sep. 30, 2017
$ / shares
shares
|
|
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | ||
Balance - December 31, 2016 (in shares) | shares | 12,000 | |
Granted (in shares) | shares | 22,500 | 37,500 |
Vested (in shares) | shares | (7,500) | |
Forfeited (in shares) | shares | 0 | |
Balance - June 30, 2017 (in shares) | shares | 27,000 | 27,000 |
Expected to vest (in shares) | shares | 27,000 | 27,000 |
Balance - December 31, 2016 (in dollars per share) | $ / shares | $ 10.00 | |
Granted (in dollars per share) | $ / shares | 10.00 | |
Vested (in dollars per share) | $ / shares | 10.00 | |
Forfeited (in dollars per share) | $ / shares | 0.00 | |
Balance - June 30, 2017 (in dollars per share) | $ / shares | 10.00 | $ 10.00 |
Expected to vest (in dollars per share) | $ / shares | $ 10.00 | $ 10.00 |
Equity Equity Phantom (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Selling Commissions Expenses | $ 2,059 | $ 1,012 | $ 6,763 | $ 1,392 | ||
Common Class T [Member] | ||||||
Common Stock, Shares Authorized | 900,000,000 | 900,000,000 | 900,000,000 | |||
Common stock, par value (usd per share) | $ 0 | $ 0 | $ 0 | |||
Shares, Issued | 20,833 | 20,833 | 20,833 | |||
Two Thousand Fifteen Incentive Plan [Member] | Restricted Stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Fair Value | $ 270 | $ 270 | $ 120 | |||
Common Stock [Member] | ||||||
Shares, Issued | 36,230,395 | 5,434,073 | 36,230,395 | 5,434,073 | 11,377,439 | 20,833 |
Related Party Transactions - Additional Information (Detail) |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | 13 Months Ended | 20 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 03, 2017 |
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Feb. 28, 2017 |
Sep. 30, 2017
USD ($)
Quarter
|
Mar. 01, 2017
$ / shares
|
Jan. 23, 2017
$ / shares
|
Dec. 30, 2016 |
Jun. 17, 2016
$ / shares
|
Feb. 29, 2016
$ / shares
|
Feb. 16, 2016
USD ($)
|
|
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 2,856,000 | $ 2,331,000 | $ 12,633,000 | $ 5,500,000 | |||||||||||||
Condition Two: Percentage Of Operating Expense Of Net Income | 25.00% | ||||||||||||||||
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||
Maximum percentage of dealer manager fee | 3.00% | 3.00% | |||||||||||||||
Percentage Of Dealer Manager Fee | 1.00% | 1.00% | 1.00% | ||||||||||||||
Asset Management Fees | $ 700,000 | $ 0 | $ 1,505,000 | $ 0 | |||||||||||||
Asset management fees waived by advisor | 29,000 | $ 49,000 | 31,000 | $ 31,000 | |||||||||||||
Minimum Investment Rate By Officer EVP | 5.00% | 10.00% | |||||||||||||||
Maximum Investment Rate By Officer EVP | 15.00% | 15.00% | |||||||||||||||
Officer purchase share price | $ / shares | $ 9.60 | ||||||||||||||||
Due to Affiliate | 8,065,000 | 5,531,000 | 8,065,000 | $ 5,531,000 | $ 8,065,000 | 5,531,000 | $ 8,065,000 | ||||||||||
Contingent Advisor Payment Incurred [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 3,548,000 | ||||||||||||||||
Due to Affiliate | 7,759,000 | 5,404,000 | 7,759,000 | 5,404,000 | 7,759,000 | 5,404,000 | 7,759,000 | ||||||||||
Base Acquisition Fee Paid [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 347,000 | 1,220,000 | 4,901,000 | 1,343,000 | |||||||||||||
Operating Expense [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 21,000 | 21,000 | 62,000 | 350,000 | |||||||||||||
Due to Affiliate | 22,000 | 20,000 | $ 22,000 | 20,000 | $ 22,000 | 20,000 | $ 22,000 | ||||||||||
Subordinated Distribution Of Net Sales Proceeds [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of distribution of net proceeds from sale of properties | 15.00% | ||||||||||||||||
Annual cumulative non compounded return on gross proceeds from sale of shares of our common stock | 6.00% | ||||||||||||||||
Subordinated DistributionUpon Listing [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Distribution rate of common stock capital to advisor | 15.00% | ||||||||||||||||
Annual cumulative non compounded return upon listing from sale of shares of common stock | 6.00% | ||||||||||||||||
Subordinated Distribution Upon Termination [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Distribution rate of partnership amount to advisor | 15.00% | ||||||||||||||||
Annual cumulative non compounded return upon termination from sale of shares of our common stock | 6.00% | ||||||||||||||||
Advisor [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Maximum Percentage Of Construction Management Fees | 5.00% | ||||||||||||||||
Number Of Consecutive Fiscal Quarter For Reimbursement Measurement | Quarter | 4 | ||||||||||||||||
Condition One: Percentage Of Operating Expenses Of Average Invested Asset | 2.00% | ||||||||||||||||
Condition Two: Percentage Of Operating Expense Of Net Income | 25.00% | ||||||||||||||||
Percentage Of Dealer Manager Fee | 2.00% | 2.00% | |||||||||||||||
Maximum percentage of other organizational and offering expense | 1.00% | ||||||||||||||||
Maximum acquisition fee of contract purchase price for property we acquire | 4.50% | ||||||||||||||||
Maximum acquisition fee of real estate-related investment purchase price we originate or acquire | 4.25% | ||||||||||||||||
Base Acquisition Fee For Property Acquired | 2.25% | 2.25% | |||||||||||||||
Base acquisition fee for real estate related investment we acquire | 2.00% | ||||||||||||||||
Contingent Advisor Payment Fee | 2.25% | 2.25% | |||||||||||||||
Contingent Advisor Payment Holdback | $ 7,500,000 | ||||||||||||||||
Imputed leverage on equity raise percentage as basis of acquisition fee | 50.00% | ||||||||||||||||
Asset management fee percentage | 0.80% | ||||||||||||||||
Percentage of property management oversight fee | 1.00% | ||||||||||||||||
Percentage of property management oversight fee - gross monthly cash receipts | 1.50% | ||||||||||||||||
Percentage of property management oversight fee - multiple tenants | 1.50% | ||||||||||||||||
Minimum percentage of lease fee | 3.00% | ||||||||||||||||
Maximum percentage of lease fee | 6.00% | ||||||||||||||||
Disposition fees as percentage of contract sales price | 2.00% | ||||||||||||||||
Disposition fees as percentage of customary competitive real estate commission | 50.00% | ||||||||||||||||
Maximum percentage of disposition fee | 6.00% | ||||||||||||||||
Operating Expense [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage Of Operating Expenses Of Average Invested Assets | 1.40% | ||||||||||||||||
Percentage Of Operating Expense Of Net Income | 40.90% | ||||||||||||||||
Lease Commissions [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 12,000 | 0 | $ 12,000 | 0 | |||||||||||||
Property Management Fee [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 103,000 | 5,000 | 249,000 | 5,000 | |||||||||||||
Reimbursement of acquisition expenses [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 0 | 2,000 | 0 | |||||||||||||
Jeffrey T. Hanson, Danny Prosky, and Mathieu B. Streiff [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Investment Rate By Officer | 100.00% | ||||||||||||||||
Dealer manager fees [Member] | Contingent Advisor Payment Incurred [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Amounts of Transaction | 1,414,000 | 741,000 | 4,751,000 | 1,043,000 | |||||||||||||
Other organizational and offering expenses [Member] | Contingent Advisor Payment Incurred [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction, Amounts of Transaction | 259,000 | $ 344,000 | 1,151,000 | $ 2,759,000 | |||||||||||||
Due to Affiliate | $ 7,759,000 | $ 5,404,000 | $ 7,759,000 | $ 5,404,000 | $ 7,759,000 | $ 5,404,000 | $ 7,759,000 | ||||||||||
Common Class I [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Maximum percentage of dealer manager fee | 1.50% | ||||||||||||||||
Share price | $ / shares | $ 9.21 | $ 9.21 | $ 9.30 | ||||||||||||||
Subsequent Event [Member] | Advisor [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Base Acquisition Fee For Property Acquired | 2.25% | ||||||||||||||||
Contingent Advisor Payment Fee | 2.25% |
Related Party Transactions - Related Party Description (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 241,435 | $ 53,503 | ||
Board of Directors Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 70 | $ 64 | $ 193 | $ 115 |
Issuance of common stock, shares | 7,553 | 6,653 | 20,910 | 11,936 |
President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 72 | $ 72 | $ 199 | $ 133 |
Issuance of common stock, shares | 7,825 | 7,463 | 21,571 | 13,810 |
Executive Vice President [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 67 | $ 69 | $ 194 | $ 127 |
Issuance of common stock, shares | 7,293 | 7,194 | 21,065 | 13,259 |
Executive Vice President, Acquisitions [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 8 | $ 8 | $ 24 | $ 15 |
Issuance of common stock, shares | 857 | 875 | 2,558 | 1,605 |
Executive Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 225 | $ 219 | $ 675 | $ 401 |
Issuance of common stock, shares | 24,402 | 22,827 | 73,072 | 41,804 |
Christopher M. Belford [Member] | Vice President, Asset Management [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 6 | $ 6 | $ 59 | $ 11 |
Issuance of common stock, shares | 653 | 642 | 6,361 | 1,194 |
Wendie Newman [Member] | Vice President, Asset Management [Member] | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock | $ 2 | $ 0 | $ 6 | $ 0 |
Issuance of common stock, shares | 221 | 0 | 607 | 0 |
Related Party Transactions - Schedule of Amount Outstanding to Affiliates (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Related Party Transaction [Line Items] | ||
Due to Affiliate | $ 8,065,000 | $ 5,531,000 |
Contingent Advisor Payment Incurred [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate | 7,759,000 | 5,404,000 |
Asset And Property Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate | 237,000 | 83,000 |
Operating Expense [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate | 22,000 | 20,000 |
Property Management Fee [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate | 37,000 | 24,000 |
Lease Commissions [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate | $ 10,000 | $ 0 |
Related Party Transactions Related Party Transactions (Phantom) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Related Party Transaction, Expenses from Transactions with Related Party | $ 2,856,000 | $ 2,331,000 | $ 12,633,000 | $ 5,500,000 |
Asset Management Fees | 700,000 | 0 | 1,505,000 | 0 |
Contingent Advisor Payment Incurred [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 3,548,000 | |||
Base Acquisition Fee Paid [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 347,000 | 1,220,000 | 4,901,000 | 1,343,000 |
Dealer manager fees [Member] | Contingent Advisor Payment Incurred [Member] | ||||
Related Party Transaction, Amounts of Transaction | 1,414,000 | 741,000 | 4,751,000 | 1,043,000 |
Other organizational and offering expenses [Member] | Contingent Advisor Payment Incurred [Member] | ||||
Related Party Transaction, Amounts of Transaction | 259,000 | 344,000 | 1,151,000 | 2,759,000 |
Reimbursement of acquisition expenses [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 0 | 2,000 | 0 |
Property Management Fee [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 103,000 | $ 5,000 | $ 249,000 | $ 5,000 |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2015 |
||||
---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Mortgage Loan Payable, Fair Value Disclosure | $ 11,950,000 | $ 4,131,000 | ||||||
Mortgage loans payable, net | 11,639,000 | [1] | 3,965,000 | [1] | $ 3,847,000 | $ 0 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 25,998,000 | 33,899,000 | ||||||
Line of credit, carrying value | $ 25,290,000 | $ 32,957,000 | ||||||
|
Business Combinations Business Combinations- Additional Information (Details) |
3 Months Ended | 9 Months Ended | 20 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Acquisition
Building
|
Sep. 30, 2016
USD ($)
Acquisition
Building
|
Sep. 30, 2017
USD ($)
Acquisition
Building
|
|
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 8 | 17 | |||
Number of buildings acquired from unaffiliated parties | Building | 30 | ||||
Contract purchase price | $ 356,640,000 | ||||
2017 Acquisitions [Member] | |||||
Total assets acquired | $ 0 | $ 0 | |||
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 8 | ||||
Number of buildings acquired from unaffiliated parties | Building | 18 | ||||
Contract purchase price | $ 217,820,000 | ||||
Acquisition fee | 9,802,000 | ||||
2016 Acquisitions [Member] | |||||
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 5 | ||||
Number of buildings acquired from unaffiliated parties | Building | 5 | ||||
Auburn MOB [Member] | |||||
Total assets acquired | 5,392,000 | $ 5,392,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 239,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 74,000 | ||||
Pottsville MOB [Member] | |||||
Total assets acquired | 9,283,000 | 9,283,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 42,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 33,000 | ||||
Charlottesville MOB [Member] | |||||
Total assets acquired | 20,128,000 | 20,128,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 47,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 37,000 | ||||
Rochester Hills MOB [Member] | |||||
Total assets acquired | 8,415,000 | 8,415,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 6,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 4,000 | ||||
Cullman MOB [Member] | |||||
Total assets acquired | 16,650,000 | 16,650,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 4,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 4,000 | ||||
2016 Acquisitions [Member] | |||||
Contract purchase price | 59,670,000 | ||||
Acquisition fee | 2,005,000 | ||||
Contingent Advisor Payment Incurred [Member] | Other organizational and offering expenses [Member] | |||||
Related Party Transaction, Amounts of Transaction | $ 259,000 | $ 344,000 | $ 1,151,000 | 2,759,000 | |
Contingent Advisor Payment Incurred [Member] | Other organizational and offering expenses [Member] | 2016 Acquisitions [Member] | |||||
Related Party Transaction, Amounts of Transaction | $ 1,342,000 |
Business Combinations Business Combinations - Fair Value of Acquisitions (Details) |
Sep. 30, 2016
USD ($)
|
---|---|
Auburn MOB [Member] | |
Building and improvements | $ 4,600,000 |
Land | 406,000 |
Total assets acquired | 5,392,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 |
Total liabilities assumed | 0 |
Net assets acquired | 5,392,000 |
Pottsville MOB [Member] | |
Building and improvements | 7,050,000 |
Land | 1,493,000 |
Total assets acquired | 9,283,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 |
Total liabilities assumed | 133,000 |
Net assets acquired | 9,150,000 |
Charlottesville MOB [Member] | |
Building and improvements | 13,330,000 |
Land | 4,768,000 |
Total assets acquired | 20,128,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 |
Total liabilities assumed | 0 |
Net assets acquired | 20,128,000 |
Rochester Hills MOB [Member] | |
Building and improvements | 5,640,000 |
Land | 1,702,000 |
Total assets acquired | 8,415,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 3,968,000 |
Total liabilities assumed | 4,083,000 |
Net assets acquired | 4,332,000 |
Cullman MOB [Member] | |
Building and improvements | 13,989,000 |
Land | 0 |
Total assets acquired | 16,650,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 |
Total liabilities assumed | 0 |
Net assets acquired | 16,650,000 |
In-Place Leases [Member] | Auburn MOB [Member] | |
In-place leases | 386,000 |
In-Place Leases [Member] | Pottsville MOB [Member] | |
In-place leases | 740,000 |
In-Place Leases [Member] | Charlottesville MOB [Member] | |
In-place leases | 2,030,000 |
In-Place Leases [Member] | Rochester Hills MOB [Member] | |
In-place leases | 1,073,000 |
In-Place Leases [Member] | Cullman MOB [Member] | |
In-place leases | 1,249,000 |
Leasehold Interest [Member] | Auburn MOB [Member] | |
In-place leases | 0 |
Leasehold Interest [Member] | Pottsville MOB [Member] | |
In-place leases | 0 |
Leasehold Interest [Member] | Charlottesville MOB [Member] | |
In-place leases | 0 |
Leasehold Interest [Member] | Rochester Hills MOB [Member] | |
In-place leases | 0 |
Leasehold Interest [Member] | Cullman MOB [Member] | |
In-place leases | 1,412,000 |
Below Market Lease [Member] | Auburn MOB [Member] | |
Total liabilities assumed | 0 |
Below Market Lease [Member] | Pottsville MOB [Member] | |
Total liabilities assumed | 133,000 |
Below Market Lease [Member] | Charlottesville MOB [Member] | |
Total liabilities assumed | 0 |
Below Market Lease [Member] | Rochester Hills MOB [Member] | |
Total liabilities assumed | 115,000 |
Below Market Lease [Member] | Cullman MOB [Member] | |
Total liabilities assumed | $ 0 |
Business Combinations Business Combinations- Business Acquisition Pro Forma Information (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 20 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
$ / shares
|
Sep. 30, 2017
USD ($)
Acquisition
$ / shares
|
Sep. 30, 2016
USD ($)
Acquisition
$ / shares
|
Sep. 30, 2017
Acquisition
|
Jan. 01, 2015
$ / shares
|
|
Net Income (Loss) Attributable to Parent | $ 754 | $ (2,092) | $ 1,290 | $ (2,855) | ||
Net income (loss) per Class T and Class I common share attributable to controlling interest — basic and diluted | $ / shares | $ 0.02 | $ (0.62) | $ 0.05 | $ (2.12) | ||
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 8 | 17 | ||||
Two Thousand Sixteen Acquisitions [Member] | ||||||
Share price | $ / shares | $ 10.00 | |||||
Business Acquisition, Pro Forma Revenue | $ 1,632 | $ 4,849 | ||||
Business Acquisition, Pro Forma Net Income (Loss) | 45 | 536 | ||||
Pro Forma Net Income Loss Attributable To Controlling Interest | $ 45 | $ 536 | ||||
Business Acquisition Pro Forma Net Earnings Per Share Attributable To Controlling Interest Basic And Diluted | $ / shares | $ 0.00 | $ 0.07 | ||||
2016 Acquisitions [Member] | ||||||
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition | 5 |
Segment Reporting - Summary Information for Reportable Segments (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Assets by Reportable Segment | |||||
Total assets | $ 371,512,000 | $ 371,512,000 | $ 142,758,000 | ||
Revenue: | |||||
Real estate revenue | 8,488,000 | $ 312,000 | 18,738,000 | $ 338,000 | |
Expenses: | |||||
Property operating expenses | 2,095,000 | 98,000 | 4,893,000 | 121,000 | |
Segment net operating income (loss) | 6,393,000 | 214,000 | 13,845,000 | 217,000 | |
Operating Expenses | |||||
General and administrative | 1,296,000 | 329,000 | 2,996,000 | 725,000 | |
Acquisition related expenses | 121,000 | 1,857,000 | 334,000 | 2,227,000 | |
Depreciation and amortization | 3,442,000 | 64,000 | 7,619,000 | 64,000 | |
Other income (expense): | |||||
Interest expense (including amortization of deferred financing costs and debt discount/premium) | (780,000) | (56,000) | (1,607,000) | (56,000) | |
Interest income | 0 | 0 | 1,000 | 0 | |
Net income (loss) | 754,000 | (2,092,000) | 1,290,000 | (2,855,000) | |
Medical Office Building [Member] | |||||
Assets by Reportable Segment | |||||
Total assets | 263,970,000 | 263,970,000 | 123,223,000 | ||
Revenue: | |||||
Real estate revenue | 6,330,000 | 312,000 | 15,456,000 | 338,000 | |
Expenses: | |||||
Property operating expenses | 1,857,000 | 98,000 | 4,543,000 | 121,000 | |
Segment net operating income (loss) | 4,473,000 | 214,000 | 10,913,000 | 217,000 | |
Senior Housing [Member] | |||||
Assets by Reportable Segment | |||||
Total assets | 98,836,000 | 98,836,000 | 16,758,000 | ||
Revenue: | |||||
Real estate revenue | 2,158,000 | 0 | 3,282,000 | 0 | |
Expenses: | |||||
Property operating expenses | 238,000 | 0 | 350,000 | 0 | |
Segment net operating income (loss) | 1,920,000 | $ 0 | 2,932,000 | $ 0 | |
Other Segments [Member] | |||||
Assets by Reportable Segment | |||||
Total assets | $ 8,706,000 | $ 8,706,000 | $ 2,777,000 |
Concentration of Credit Risk - Additional Information (Detail) |
Sep. 30, 2017
State
|
---|---|
Concentration of Credit Risk | |
Minimum Percent Share Of Each State Annualized Base Rent That Company Owned | 10.00% |
Number of states with more than ten percent of tenant annual base rent | 3 |
Number of tenants with more than ten percent of annual base rent | 2 |
Minimum percent share of annualized base rent accounted by tenants | 10.00% |
NEVADA | |
Concentration of Credit Risk | |
Percentage of annual base rent | 17.20% |
ALABAMA | |
Concentration of Credit Risk | |
Percentage of annual base rent | 15.30% |
CALIFORNIA | |
Concentration of Credit Risk | |
Percentage of annual base rent | 12.60% |
Concentration of Credit Risk - Schedule of Annualized Base Rent from Tenants at Consolidated Properties (Detail) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
ft²
| |
Annualized Base Rent From Tenants At Consolidated Properties [Line Items] | |
GLA (Sq Ft) | 1,418,000 |
Colonial Oaks Master Tenant, LLC [Member] | |
Annualized Base Rent From Tenants At Consolidated Properties [Line Items] | |
Type Of Property Acquired | Senior Housing |
GLA (Sq Ft) | 215,000 |
Lease Expiration Date | Jun. 30, 2032 |
Annual Base Rent | $ | $ 4,108 |
Percentage of annual base rent | 15.10% |
Prime Healthcare Services - Reno [Member] | |
Annualized Base Rent From Tenants At Consolidated Properties [Line Items] | |
Type Of Property Acquired | Medical Office |
GLA (Sq Ft) | 146,000 |
Annual Base Rent | $ | $ 3,817 |
Percentage of annual base rent | 14.01% |
Per Share Data (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | $ 4,000 | $ 2,000 | $ 8,000 | $ 3,000 |
Restricted Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 27,000 | 12,000 | ||
Redeemable Limited Partnership Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 208 | 208 |
Subsequent Events - Summary of Acquisitions of Properties (Details) - USD ($) |
1 Months Ended | 9 Months Ended | 20 Months Ended | ||
---|---|---|---|---|---|
Nov. 03, 2017 |
Sep. 30, 2017 |
Sep. 30, 2017 |
Oct. 31, 2017 |
Aug. 25, 2016 |
|
Ownership Percentage, Properties | 100.00% | ||||
Contract purchase price | $ 356,640,000 | ||||
Mortgage Loans Payable Related To Acquisition Of Properties | $ 8,000,000 | ||||
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity | $ 100,000,000 | ||||
Line Of Credit Facility, Potential Maximum Borrowing Capacity | 200,000,000 | ||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | |||
Subsequent Event [Member] | |||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||||
Common Stock [Member] | Subsequent Event [Member] | |||||
Subscriptions in offering of common stock received and accepted shares | 37,774,078 | ||||
Subscriptions in offering of common stock received and accepted value | $ 375,913,000 | ||||
Central Florida Senior Housing Portfolio [Member] | Subsequent Event [Member] | |||||
Date acquired | Nov. 01, 2017 | ||||
Ownership Percentage, Properties | 98.00% | ||||
Contract purchase price | $ 109,500,000 | ||||
Mortgage Loans Payable Related To Acquisition Of Properties | 112,000,000 | ||||
Related Parties Transactions Acquisition Fees Expenses | $ 4,882,000 | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity | 50,000,000 | ||||
Line of Credit [Member] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Line of Credit [Member] | Subsequent Event [Member] | |||||
Line of credit facility, maximum borrowing capacity | 150,000,000 | ||||
Term Loan [Member] | Subsequent Event [Member] | |||||
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity | 50,000,000 | ||||
Non-recourse Indebtedness [Member] | Subsequent Event [Member] | |||||
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity | 50,000,000 | ||||
Recourse Indebtedness [Member] | Subsequent Event [Member] | |||||
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity | 20,000,000 | ||||
Aggregate Revolving Commitments [Member] | Subsequent Event [Member] | |||||
Line Of Credit Facility, Potential Maximum Borrowing Capacity | $ 300,000,000 | ||||
Credit Agreement [Member] | Subsequent Event [Member] | |||||
Debt Instrument, Leverage Ratio | 40.00% | ||||
Advisor [Member] | |||||
Base Acquisition Fee For Property Acquired | 2.25% | 2.25% | |||
Contingent Advisor Payment Fee | 2.25% | 2.25% | |||
Advisor [Member] | Subsequent Event [Member] | |||||
Base Acquisition Fee For Property Acquired | 2.25% | ||||
Contingent Advisor Payment Fee | 2.25% |
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