RECENT REAL ESTATE ACQUISITIONS (Notes)

3 Months Ended

Mar. 31, 2014

RECENT REAL ESTATE ACQUISITIONS [Abstract]

Recent Real Estate Acquisitions

RECENT REAL ESTATE ACQUISITIONS

During the three months ended March 31, 2014, the Company acquired six skilled nursing facilities and two senior housing facilities for consideration totaling $117.7 million. The consideration was allocated as follows (in thousands):

				Intangibles
Land		Building and Improvements		Tenant Origination and Absorption Costs		Tenant Relationship		Total Consideration
$	9,640	$	105,741	$	1,741	$	586	$	117,708

As of March 31, 2014, the purchase price allocations for acquisitions completed during the three months ended March 31, 2014 are preliminary pending the receipt of information necessary to complete the valuation of certain tangible and intangible assets and liabilities and therefore are subject to change.

The tenant origination and absorption costs intangible assets and tenant relationship intangible assets acquired in connection with these acquisitions have weighted-average amortization periods as of the date of acquisition of 11 years and 21 years, respectively.

For the three months ended March 31, 2014, the Company recognized $1.2 million and $0.5 million of total revenues and net income attributable to common stockholders, respectively, from these properties.

Acquisition Earn-Out

In connection with its acquisition of four skilled nursing facilities and two senior housing facilities (the “Nye Portfolio”) for $90.0 million, the Company may pay an earn-out based on incremental portfolio value created through the improvement of current operations as well as through expansion and conversion projects associated with these facilities. The earn-out amount will be determined based on portfolio performance following the third anniversary of the master lease. The Company estimated a contingent consideration liability of $3.2 million at the time of purchase. As of March 31, 2014, based on the performance of the Nye Portfolio, the contingent consideration liability remains at $3.2 million and is included in accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheet.