Real Estate Investments

During the six months ended June 30, 2016, the Company completed the acquisition of one healthcare real estate investment, consisting of five properties, that was determined to be a business combination, or the 2016 Acquisition. The aggregate purchase price of the 2016 Acquisition was $71,000,000, plus closing costs. The Company funded the purchase price of the 2016 Acquisition using cash and its unsecured credit facility.

The following table summarizes the 2016 Acquisition:



Property Description	Date Acquired	Ownership Percentage
Post Acute Medical Portfolio	05/23/2016	100%

Results of operations for the 2016 Acquisition are reflected in the accompanying condensed consolidated statement of comprehensive income for three and six months ended June 30, 2016 for the period subsequent to the acquisition date of each property. For the period from the acquisition date through June 30, 2016, the Company recorded $839,000 in revenues and a net loss of $1,132,000 for the 2016 Acquisition.

In addition, during the six months ended June 30, 2016 and 2015, the Company incurred aggregate charges related to acquisition fees and costs of $1,630,000 and $3,467,000, respectively, in connection with acquisitions determined to be business combinations, which are included in the accompanying condensed consolidated statements of comprehensive income. The total amount of all acquisition fees and costs is limited to 6.0% of the contract purchase price of the property. The contract purchase price is the amount actually paid or allocated in respect of the purchase, development, construction or improvement of a property, exclusive of acquisition fees and acquisition expenses. For the six months ended June 30, 2016 and 2015, acquisition fees and costs did not exceed 6.0% of the purchase price of the Company’s acquisitions during such periods.

The following table summarizes management’s allocation of the fair value of the 2016 Acquisition during the six months ended June 30, 2016 (amounts in thousands):



	Total
Land	$	4,781
Buildings and improvements	53,284
In-place leases	12,935
Total assets acquired	$	71,000

Assuming the 2016 Acquisition described above had occurred on January 1, 2015, pro forma revenues, net income and net income attributable to common stockholders would have been as follows for the periods listed below (amounts in thousands, except per share amounts, unaudited):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Pro forma basis:
Revenues	$	59,943	$	54,667	$	118,210	$	110,409
Net income	$	19,689	$	18,706	$	38,643	$	32,397
Net income attributable to common stockholders	$	18,628	$	17,126	$	36,654	$	29,203
Net income per common share attributable to common stockholders:
Basic	$	0.10	$	0.10	$	0.20	$	0.17
Diluted	$	0.10	$	0.10	$	0.20	$	0.17

The condensed pro forma consolidated financial statements for the three and six months ended June 30, 2016 and 2015 include pro forma adjustments related to the acquisitions during 2016 and 2015. The pro forma information for both the three and six months ended June 30, 2016 was adjusted to exclude approximately $1,630,000 of acquisition fees and costs recorded related to the Company’s real estate investments. The pro forma information may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2015, nor is it necessarily indicative of future operating results.