RECENT REAL ESTATE ACQUISITIONS

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

RECENT REAL ESTATE ACQUISITIONS

RECENT REAL ESTATE ACQUISITIONS

During the nine months ended September 30, 2015, the Company acquired three skilled nursing/transitional care facilities and 19 senior housing facilities. During the nine months ended September 30, 2014, the Company acquired six skilled nursing/transitional care facilities and 27 senior housing facilities. The consideration was allocated as follows (in thousands):

	Nine Months Ended September 30,
	2015		2014
Land	$	26,855	$	54,387
Building and Improvements	372,031		625,536
Tenant Origination and Absorption Costs	5,481		7,924
Tenant Relationship	1,881		2,991
Total Consideration	$	406,248	$	690,838

As of September 30, 2015, the purchase price allocations for the nine senior housing facilities acquired during the three months ended September 30, 2015 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 respective date of acquisition of 12 years and 22 years, respectively.

For the three and nine months ended September 30, 2015, the Company recognized $7.4 million and $8.1 million, respectively, of total revenues and $4.6 million and $(0.2) million, respectively, of net income (loss) attributable to common stockholders from the properties acquired during the three and nine months ended September 30, 2015. These amounts include acquisition pursuit costs of $0.5 million and $5.7 million, respectively.

On June 11, 2015, the Company acquired nine senior housing facilities with a total of 865 units located in British Columbia and Ontario, Canada (the “Canadian Portfolio”) for a purchase price of CAD $170.5 million (U.S. $138.8 million). Concurrently with the acquisition, the Company entered into a triple-net master lease agreement with an affiliate of Senior Lifestyle Corporation. The master lease has an initial term of 10 years with twofive-year renewal options with annual rent increases of 4.0% in years two and three and the greater of 3.0% or the Canadian Consumer Price Index ("CPI") during the remainder of the lease term. The master lease is expected to generate annual lease revenues determined in accordance with GAAP of CAD $11.9 million. In connection with the acquisition of the Canadian Portfolio, the Company assumed three existing mortgage loans with then outstanding principal amounts totaling CAD $24.2 million.

On June 30, 2015, the Company acquired three skilled nursing facilities that specialize in transitional care and medically complex post-surgical, ventilator and dialysis patients with a total of 472 licensed beds located in Maryland (collectively, the "NMS Portfolio") for a purchase price of $175.2 million. Concurrently with the acquisition, the Company entered into a triple-net master lease agreement with the current operator (“NMS Operator”). The master lease has an initial term of 15 years with two10-year renewal options and annual rent escalators equal to the greater of 2.50% or CPI, but not to exceed 2.75%. The lease is expected to generate annual lease revenues determined in accordance with GAAP of $18.3 million. Also on June 30, 2015, the Company entered into a purchase and sale agreement with the seller of the NMS Portfolio to acquire a fourth skilled nursing facility that also specializes in transitional care and medically complex post-surgical, ventilator and dialysis patients with a total of 206 licensed beds located in Maryland for $58.8 million. The transaction is expected to close during the fourth quarter of 2015, subject to customary closing conditions, including the assumption of an existing $10.8 million U.S. Department of Housing and Urban Development ("HUD") loan having an annual interest rate of 5.60%. Upon closing, the facility will be operated by the NMS Operator under a separate lease agreement with similar terms.