Real Estate Investments, Net (Tables)

3 Months Ended

Mar. 31, 2020

Real Estate Investments, Net [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table presents the allocation of real estate assets acquired and liabilities assumed, as well as capitalized construction in progress, during the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
(In thousands)	2020			2019
Real estate investments, at cost:
Land	$	6,900		$	2,827
Buildings, fixtures and improvements	86,687			26,022
Development costs	—			2,261
Total tangible assets	93,587			31,110
Acquired intangibles:
In-place leases and other intangible assets (1)	9,385			2,768
Market lease and other intangible assets (1)	472			31
Market lease liabilities (1)	(362		)	(821		)
Total intangible assets and liabilities	9,495			1,978
Mortgage notes payable, net	(13,883		)	—
Other assets acquired and liabilities assumed in the Asset Acquisition, net	1,786			—
Cash paid for real estate investments, including acquisitions	$	90,985		$	33,088
Number of properties purchased	8			3

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⁽¹⁾ 

Weighted-average remaining amortization periods for in-place leases, an above-market lease and a below-market lease liability acquired were 3.0 years and 5.6 years as of March 31, 2020 and 2019, respectively.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table lists the states where the Company had concentrations of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of March 31, 2020 and 2019:

	March 31,
State	2020	2019
Florida (1)	25.6%	23.1%
Michigan (2)	10.0%	10.9%

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* State’s annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the date specified.

⁽¹⁾ As of March 31, 2020, the Company had commenced marketing three assets in Florida including the recently completed development project in Jupiter, Florida and its two skilled nursing facilities in Lutz, Florida and Wellington, Florida. The company started marketing these assets in the quarter ended March 31, 2020. There can be no assurance these properties will be sold on favorable terms, or at all. See “Assets Held for Use and Related Impairments” in this note for more information.

⁽²⁾ As of March 31, 2020, the Company had 11 SHOP assets located in Michigan that are under contract to be sold pursuant to a definitive purchase and sale agreement (“PSA”). See “Assets Held for Sale and Related Impairments” in this note for more information.

Schedule of Finite-Lived Intangible Assets

The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place leases and other intangible assets, amortization and accretion of above-and below-market lease assets and liabilities, net and the amortization and accretion of above-and below-market ground leases, for the periods presented:

	Three Months Ended March 31,
(In thousands)	2020			2019
Amortization of in-place leases and other intangible assets (1)	$	4,009		$	4,062
(Accretion) and Amortization of above-and below-market leases, net (2)	$	(21	)	$	(110	)
Amortization of above-and below-market ground leases, net (3)	$	39		$	21

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⁽¹⁾ Reflected within depreciation and amortization expense.

⁽²⁾   Reflected within rental income.

⁽³⁾

Reflected within property operating and maintenance expense

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following table provides the projected amortization expense and adjustments to revenues for the next five years:

(In thousands)	2020 (remainder)			2021			2022			2023			2024
In-place lease assets	$	9,487		$	10,710		$	8,704		$	6,830		$	6,070
Other intangible assets	261			414			414			414			414
Total to be added to amortization expense	$	9,748		$	11,124		$	9,118		$	7,244		$	6,484
Above-market lease assets	$	(1,216	)	$	(993	)	$	(645	)	$	(307	)	$	(260	)
Below-market lease liabilities	1,434			1,269			1,208			1,095			955
Total to be added to revenue from tenants	$	218		$	276		$	563		$	788		$	695

Real Estate Sales

e

The following table details the major classes of assets associated with the properties that are classified as held for sale as of March 31, 2020 and December 31, 2018:

The following table presents impairments recorded during the three months ended March 31, 2020. There were no impairments recorded for the three months ended March 31,2019.

	Three Months Ended March 31,
(In thousands)	2020		2019
Assets held for sale	$	18,038	$	—
Assets held for use			—
Total	$	18,038	$	—