ACQUISITIONS OF REAL ESTATE

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Acquisition of Real Estate

RECENT REAL ESTATE ACQUISITIONS

During the year ended December 31, 2014, the Company acquired 10 skilled nursing/transitional care facilities and 32 senior housing facilities. During the year ended December 31, 2013, the Company acquired one senior housing facility and one acute care hospital. The consideration was allocated as follows (in thousands):

	Year Ended December 31,
	2014		2013
Land	$	66,688	$	5,563
Building and Improvements	725,822		114,666
Tenant Origination and Absorption Costs	9,546		2,196
Tenant Relationship	3,612		349
Total Consideration	$	805,668	$	122,774

In connection with the acquisitions during the year ended December 31, 2014, the Company assumed a HUD-insured mortgage with an outstanding principal balance of approximately $14.1 million and an annual interest rate of 4.84%.

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 13 years and 23 years, respectively.

For the year ended December 31, 2014, the Company recognized $23.7 million and $12.9 million of total revenues and net income attributable to common stockholders, respectively, from these properties.

Holiday Portfolio

On September 25, 2014, the Company acquired a portfolio of 21 independent living facilities (the “Holiday Portfolio”), located in 15 states, from affiliates of Holiday Acquisition Holdings Corp. (“Holiday”) for a total cash purchase price of $550.0 million. Concurrently with the acquisition, certain wholly owned subsidiaries of the Company entered into a triple-net master lease agreement with certain wholly owned subsidiaries of Holiday AL Holdings LP (collectively, “Holiday Tenant”), an affiliate of Holiday. The master lease has an initial term of 15 years with twofive-year renewal options and provides for base rent in the first year of approximately $30.3 million, with annual rent increases of 4.0% in years two and three and the greater of 3.5% or the change in the Consumer Price Index during the remainder of the lease term. The master lease is expected to generate annual lease revenues determined in accordance with GAAP of $39.3 million.