RECENT REAL ESTATE ACQUISITIONS (Notes)

6 Months Ended

Jun. 30, 2014

RECENT REAL ESTATE ACQUISITIONS [Abstract]

Recent Real Estate Acquisitions

RECENT REAL ESTATE ACQUISITIONS

During the six months ended June 30, 2014, the Company acquired six skilled nursing facilities and three senior housing facilities for consideration totaling $141.5 million. The consideration was allocated as follows (in thousands):

				Intangibles
Land		Building and Improvements		Tenant Origination and Absorption Costs		Tenant Relationship		Total Consideration
$	11,939	$	126,855	$	2,075	$	677	$	141,546

As of June 30, 2014, the purchase price allocations for the acquisition completed during the three months ended June 30, 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 12 years and 21 years, respectively.

For the three and six months ended June 30, 2014, the Company recognized $3.1 million and $4.3 million, respectively, of total revenues and $1.9 million and $2.3 million, respectively, of net income attributable to common stockholders from these properties.

Acquisition Earn-Out

On February 14, 2014, the Company acquired 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. To determine value of the contingent consideration, the Company used significant inputs not observable in the market to estimate the earn-out, made assumptions regarding the probability of the portfolio achieving the incremental value and then applied an appropriate discount rate. The Company estimated a contingent consideration liability of $3.2 million at the time of purchase. As of June 30, 2014, based on the potential future performance of the Nye Portfolio, the contingent consideration liability is estimated at $3.3 million and is included in accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheet. During the three and six months ended June 30, 2014, the Company recorded an adjustment to the contingent consideration liability of $0.1 million and included this amount in Other (expense) income on the accompanying condensed consolidated statements of income (loss).