x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2019 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Maryland | 46-1749436 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
18191 Von Karman Avenue, Suite 300, Irvine, California | 92612 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
None | None | None |
Large accelerated filer | ¨ | Accelerated filer | ¨ | |
Non-accelerated filer | x | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
Page | |
September 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Real estate investments, net | $ | 2,249,059,000 | $ | 2,222,681,000 | |||
Real estate notes receivable and debt security investment, net | 71,986,000 | 98,655,000 | |||||
Cash and cash equivalents | 46,709,000 | 35,132,000 | |||||
Accounts and other receivables, net | 128,879,000 | 122,918,000 | |||||
Restricted cash | 37,464,000 | 37,573,000 | |||||
Real estate deposits | 281,000 | 3,077,000 | |||||
Identified intangible assets, net | 161,073,000 | 179,521,000 | |||||
Goodwill | 75,309,000 | 75,309,000 | |||||
Operating lease right-of-use assets | 187,900,000 | — | |||||
Other assets, net | 132,749,000 | 114,226,000 | |||||
Total assets | $ | 3,091,409,000 | $ | 2,889,092,000 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Liabilities: | |||||||
Mortgage loans payable, net(1) | $ | 805,257,000 | $ | 688,262,000 | |||
Lines of credit and term loans(1) | 755,279,000 | 738,048,000 | |||||
Accounts payable and accrued liabilities(1) | 150,502,000 | 139,383,000 | |||||
Accounts payable due to affiliates(1) | 2,147,000 | 2,103,000 | |||||
Identified intangible liabilities, net | 751,000 | 1,051,000 | |||||
Financing obligations(1) | 29,137,000 | 25,947,000 | |||||
Operating lease liabilities(1) | 178,172,000 | — | |||||
Security deposits, prepaid rent and other liabilities(1) | 45,853,000 | 37,418,000 | |||||
Total liabilities | 1,967,098,000 | 1,632,212,000 | |||||
Commitments and contingencies (Note 11) | |||||||
Redeemable noncontrolling interests (Note 12) | 37,811,000 | 38,245,000 | |||||
Equity: | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding | — | — | |||||
Common stock, $0.01 par value per share; 1,000,000,000 shares authorized; 194,389,974 and 197,557,377 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 1,943,000 | 1,975,000 | |||||
Additional paid-in capital | 1,735,527,000 | 1,765,840,000 | |||||
Accumulated deficit | (806,427,000 | ) | (704,748,000 | ) | |||
Accumulated other comprehensive loss | (2,861,000 | ) | (2,560,000 | ) | |||
Total stockholders’ equity | 928,182,000 | 1,060,507,000 | |||||
Noncontrolling interests (Note 13) | 158,318,000 | 158,128,000 | |||||
Total equity | 1,086,500,000 | 1,218,635,000 | |||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 3,091,409,000 | $ | 2,889,092,000 |
(1) | Such liabilities of Griffin-American Healthcare REIT III, Inc. as of September 30, 2019 and December 31, 2018 represented liabilities of Griffin-American Healthcare REIT III Holdings, LP or its consolidated subsidiaries. Griffin-American Healthcare REIT III Holdings, LP is a variable interest entity, or VIE, and a consolidated subsidiary of Griffin-American Healthcare REIT III, Inc. The creditors of Griffin-American Healthcare REIT III Holdings, LP or its consolidated subsidiaries do not have recourse against Griffin-American Healthcare REIT III, Inc., except for the 2019 Corporate Line of Credit and 2016 Corporate Line of Credit, as defined in Note 8, held by Griffin-American Healthcare REIT III Holdings, LP in the amount of $517,500,000 and $548,500,000 as of September 30, 2019 and December 31, 2018, respectively, which is guaranteed by Griffin-American Healthcare REIT III, Inc. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Resident fees and services | $ | 273,800,000 | $ | 251,884,000 | $ | 814,554,000 | $ | 744,859,000 | |||||||
Real estate revenue | 27,962,000 | 32,295,000 | 93,197,000 | 97,475,000 | |||||||||||
Total revenues | 301,762,000 | 284,179,000 | 907,751,000 | 842,334,000 | |||||||||||
Expenses: | |||||||||||||||
Property operating expenses | 241,858,000 | 223,665,000 | 716,700,000 | 659,295,000 | |||||||||||
Rental expenses | 9,188,000 | 8,577,000 | 25,839,000 | 26,264,000 | |||||||||||
General and administrative | 7,675,000 | 6,900,000 | 21,104,000 | 19,910,000 | |||||||||||
Acquisition related expenses | 4,000 | (1,102,000 | ) | (292,000 | ) | (1,657,000 | ) | ||||||||
Depreciation and amortization | 36,778,000 | 23,816,000 | 87,149,000 | 70,190,000 | |||||||||||
Total expenses | 295,503,000 | 261,856,000 | 850,500,000 | 774,002,000 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense: | |||||||||||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (21,046,000 | ) | (16,538,000 | ) | (59,665,000 | ) | (48,369,000 | ) | |||||||
Loss in fair value of derivative financial instruments | (1,169,000 | ) | (750,000 | ) | (5,846,000 | ) | (1,127,000 | ) | |||||||
Impairment of real estate investment | — | — | — | (2,542,000 | ) | ||||||||||
Loss from unconsolidated entities | (766,000 | ) | (1,137,000 | ) | (1,713,000 | ) | (3,672,000 | ) | |||||||
Foreign currency loss | (1,464,000 | ) | (619,000 | ) | (1,654,000 | ) | (1,652,000 | ) | |||||||
Other income | 1,923,000 | 501,000 | 2,377,000 | 1,020,000 | |||||||||||
(Loss) Income before income taxes | (16,263,000 | ) | 3,780,000 | (9,250,000 | ) | 11,990,000 | |||||||||
Income tax (expense) benefit | (840,000 | ) | 44,000 | (1,150,000 | ) | 941,000 | |||||||||
Net (loss) income | (17,103,000 | ) | 3,824,000 | (10,400,000 | ) | 12,931,000 | |||||||||
Less: net income attributable to noncontrolling interests | (201,000 | ) | (212,000 | ) | (2,979,000 | ) | (1,224,000 | ) | |||||||
Net (loss) income attributable to controlling interest | $ | (17,304,000 | ) | $ | 3,612,000 | $ | (13,379,000 | ) | $ | 11,707,000 | |||||
Net (loss) income per common share attributable to controlling interest — basic and diluted | $ | (0.09 | ) | $ | 0.02 | $ | (0.07 | ) | $ | 0.06 | |||||
Weighted average number of common shares outstanding — basic and diluted | 195,669,002 | 199,818,444 | 196,705,085 | 200,120,637 | |||||||||||
Net (loss) income | $ | (17,103,000 | ) | $ | 3,824,000 | $ | (10,400,000 | ) | $ | 12,931,000 | |||||
Other comprehensive loss: | |||||||||||||||
Foreign currency translation adjustments | (281,000 | ) | (136,000 | ) | (301,000 | ) | (374,000 | ) | |||||||
Total other comprehensive loss | (281,000 | ) | (136,000 | ) | (301,000 | ) | (374,000 | ) | |||||||
Comprehensive (loss) income | (17,384,000 | ) | 3,688,000 | (10,701,000 | ) | 12,557,000 | |||||||||
Less: comprehensive income attributable to noncontrolling interests | (201,000 | ) | (212,000 | ) | (2,979,000 | ) | (1,224,000 | ) | |||||||
Comprehensive (loss) income attributable to controlling interest | $ | (17,585,000 | ) | $ | 3,476,000 | $ | (13,680,000 | ) | $ | 11,333,000 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
BALANCE — June 30, 2019 | 194,736,018 | $ | 1,946,000 | $ | 1,739,119,000 | $ | (759,520,000 | ) | $ | (2,580,000 | ) | $ | 978,965,000 | $ | 160,010,000 | $ | 1,138,975,000 | ||||||||||||||
Issuance of vested and nonvested restricted common stock | 15,000 | — | 28,000 | — | — | 28,000 | — | 28,000 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | 1,471,581 | 15,000 | 13,774,000 | — | — | 13,789,000 | — | 13,789,000 | |||||||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 44,000 | — | — | 44,000 | — | 44,000 | |||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 195,000 | 195,000 | |||||||||||||||||||||||
Repurchase of common stock | (1,832,625 | ) | (18,000 | ) | (17,303,000 | ) | — | — | (17,321,000 | ) | — | (17,321,000 | ) | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (1,817,000 | ) | (1,817,000 | ) | |||||||||||||||||||||
Reclassification of noncontrolling interests to mezzanine equity | — | — | — | — | — | — | (195,000 | ) | (195,000 | ) | |||||||||||||||||||||
Fair value adjustment to redeemable noncontrolling interests | — | — | (135,000 | ) | — | — | (135,000 | ) | (59,000 | ) | (194,000 | ) | |||||||||||||||||||
Distributions declared ($0.15 per share) | — | — | — | (29,603,000 | ) | — | (29,603,000 | ) | — | (29,603,000 | ) | ||||||||||||||||||||
Net (loss) income | — | — | — | (17,304,000 | ) | — | (17,304,000 | ) | 184,000 | (1 | ) | (17,120,000 | ) | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | (281,000 | ) | (281,000 | ) | — | (281,000 | ) | ||||||||||||||||||||
BALANCE — September 30, 2019 | 194,389,974 | $ | 1,943,000 | $ | 1,735,527,000 | $ | (806,427,000 | ) | $ | (2,861,000 | ) | $ | 928,182,000 | $ | 158,318,000 | $ | 1,086,500,000 |
Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
BALANCE — June 30, 2018 | 198,864,815 | $ | 1,988,000 | $ | 1,781,514,000 | $ | (649,551,000 | ) | $ | (2,209,000 | ) | $ | 1,131,742,000 | $ | 160,639,000 | $ | 1,292,381,000 | ||||||||||||||
Issuance of vested and nonvested restricted common stock | 15,000 | — | 27,000 | — | — | 27,000 | — | 27,000 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | 1,617,584 | 16,000 | 14,979,000 | — | — | 14,995,000 | — | 14,995,000 | |||||||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 45,000 | — | — | 45,000 | — | 45,000 | |||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 195,000 | 195,000 | |||||||||||||||||||||||
Repurchase of common stock | (1,994,354 | ) | (19,000 | ) | (18,380,000 | ) | — | — | (18,399,000 | ) | — | (18,399,000 | ) | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (1,873,000 | ) | (1,873,000 | ) | |||||||||||||||||||||
Reclassification of noncontrolling interests to mezzanine equity | — | — | — | — | — | — | (195,000 | ) | (195,000 | ) | |||||||||||||||||||||
Fair value adjustment to redeemable noncontrolling interests | — | — | (101,000 | ) | — | — | (101,000 | ) | (43,000 | ) | (144,000 | ) | |||||||||||||||||||
Distributions declared ($0.15 per share) | — | — | — | (30,227,000 | ) | — | (30,227,000 | ) | — | (30,227,000 | ) | ||||||||||||||||||||
Net income | — | — | — | 3,612,000 | — | 3,612,000 | 188,000 | (1 | ) | 3,800,000 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (136,000 | ) | (136,000 | ) | — | (136,000 | ) | ||||||||||||||||||||
BALANCE — September 30, 2018 | 198,503,045 | $ | 1,985,000 | $ | 1,778,084,000 | $ | (676,166,000 | ) | $ | (2,345,000 | ) | $ | 1,101,558,000 | $ | 158,911,000 | $ | 1,260,469,000 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
BALANCE — December 31, 2018 | 197,557,377 | $ | 1,975,000 | $ | 1,765,840,000 | $ | (704,748,000 | ) | $ | (2,560,000 | ) | $ | 1,060,507,000 | $ | 158,128,000 | $ | 1,218,635,000 | ||||||||||||||
Offering costs — common stock | — | — | (84,000 | ) | — | — | (84,000 | ) | — | (84,000 | ) | ||||||||||||||||||||
Issuance of vested and nonvested restricted common stock | 22,500 | — | 42,000 | — | — | 42,000 | — | 42,000 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | 4,493,074 | 45,000 | 42,055,000 | — | — | 42,100,000 | — | 42,100,000 | |||||||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 130,000 | — | — | 130,000 | — | 130,000 | |||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 585,000 | 585,000 | |||||||||||||||||||||||
Repurchase of common stock | (7,682,977 | ) | (77,000 | ) | (72,379,000 | ) | — | — | (72,456,000 | ) | — | (72,456,000 | ) | ||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | 3,000,000 | 3,000,000 | |||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (5,452,000 | ) | (5,452,000 | ) | |||||||||||||||||||||
Reclassification of noncontrolling interests to mezzanine equity | — | — | — | — | — | — | (585,000 | ) | (585,000 | ) | |||||||||||||||||||||
Fair value adjustment to redeemable noncontrolling interests | — | — | (77,000 | ) | — | — | (77,000 | ) | (33,000 | ) | (110,000 | ) | |||||||||||||||||||
Distributions declared ($0.45 per share) | — | — | — | (88,300,000 | ) | — | (88,300,000 | ) | — | (88,300,000 | ) | ||||||||||||||||||||
Net (loss) income | — | — | — | (13,379,000 | ) | — | (13,379,000 | ) | 2,675,000 | (1 | ) | (10,704,000 | ) | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | (301,000 | ) | (301,000 | ) | — | (301,000 | ) | ||||||||||||||||||||
BALANCE — September 30, 2019 | 194,389,974 | $ | 1,943,000 | $ | 1,735,527,000 | $ | (806,427,000 | ) | $ | (2,861,000 | ) | $ | 928,182,000 | $ | 158,318,000 | $ | 1,086,500,000 |
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
BALANCE — December 31, 2017 | 199,343,234 | $ | 1,993,000 | $ | 1,785,872,000 | $ | (598,044,000 | ) | $ | (1,971,000 | ) | $ | 1,187,850,000 | $ | 158,725,000 | $ | 1,346,575,000 | ||||||||||||||
Offering costs — common stock | — | — | (6,000 | ) | — | — | (6,000 | ) | — | (6,000 | ) | ||||||||||||||||||||
Issuance of vested and nonvested restricted common stock | 22,500 | — | 41,000 | — | — | 41,000 | — | 41,000 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | 4,902,237 | 49,000 | 45,395,000 | — | — | 45,444,000 | — | 45,444,000 | |||||||||||||||||||||||
Amortization of nonvested common stock compensation | — | — | 130,000 | — | — | 130,000 | — | 130,000 | |||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | 585,000 | 585,000 | |||||||||||||||||||||||
Repurchase of common stock | (5,764,926 | ) | (57,000 | ) | (53,042,000 | ) | — | — | (53,099,000 | ) | — | (53,099,000 | ) | ||||||||||||||||||
Contribution from noncontrolling interest | — | — | — | — | — | — | 4,470,000 | 4,470,000 | |||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (5,246,000 | ) | (5,246,000 | ) | |||||||||||||||||||||
Reclassification of noncontrolling interests to mezzanine equity | — | — | — | — | — | — | (585,000 | ) | (585,000 | ) | |||||||||||||||||||||
Fair value adjustment to redeemable noncontrolling interests | — | — | (306,000 | ) | — | — | (306,000 | ) | (131,000 | ) | (437,000 | ) | |||||||||||||||||||
Distributions declared ($0.45 per share) | — | — | — | (89,829,000 | ) | — | (89,829,000 | ) | — | (89,829,000 | ) | ||||||||||||||||||||
Net income | — | — | — | 11,707,000 | — | 11,707,000 | 1,093,000 | (1 | ) | 12,800,000 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (374,000 | ) | (374,000 | ) | — | (374,000 | ) | ||||||||||||||||||||
BALANCE — September 30, 2018 | 198,503,045 | $ | 1,985,000 | $ | 1,778,084,000 | $ | (676,166,000 | ) | $ | (2,345,000 | ) | $ | 1,101,558,000 | $ | 158,911,000 | $ | 1,260,469,000 |
(1) | For the three months ended September 30, 2019 and 2018, amounts exclude $17,000 and $24,000, respectively, of the net income attributable to redeemable noncontrolling interests. For the nine months ended September 30, 2019 and 2018, amounts exclude $304,000 and $131,000, respectively, of net income attributable to redeemable noncontrolling interests. See Note 12, Redeemable Noncontrolling Interests, for a further discussion. |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net (loss) income | $ | (10,400,000 | ) | $ | 12,931,000 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 87,149,000 | 70,190,000 | |||||
Other amortization | 22,625,000 | 3,871,000 | |||||
Deferred rent | (1,909,000 | ) | (4,650,000 | ) | |||
Stock based compensation | 585,000 | 585,000 | |||||
Stock based compensation — nonvested restricted common stock | 172,000 | 171,000 | |||||
Loss from unconsolidated entities | 1,713,000 | 3,672,000 | |||||
Bad debt expense | 745,000 | 331,000 | |||||
Foreign currency loss | 1,653,000 | 1,619,000 | |||||
Loss on extinguishment of debt | 2,179,000 | — | |||||
Change in fair value of contingent consideration | (681,000 | ) | (1,609,000 | ) | |||
Change in fair value of derivative financial instruments | 5,846,000 | 1,127,000 | |||||
Impairment of real estate investment | — | 2,542,000 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts and other receivables | (6,708,000 | ) | (5,325,000 | ) | |||
Other assets | (5,193,000 | ) | (12,072,000 | ) | |||
Accounts payable and accrued liabilities | 6,888,000 | 3,390,000 | |||||
Accounts payable due to affiliates | 47,000 | 13,000 | |||||
Security deposits, prepaid rent, operating lease and other liabilities | (12,919,000 | ) | (489,000 | ) | |||
Net cash provided by operating activities | 91,792,000 | 76,297,000 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Acquisitions of real estate investments | (32,793,000 | ) | (63,984,000 | ) | |||
Proceeds from real estate dispositions | — | 1,000,000 | |||||
Principal repayments on real estate notes receivable | 28,650,000 | — | |||||
Investments in unconsolidated entities | (1,520,000 | ) | (2,000,000 | ) | |||
Capital expenditures | (65,740,000 | ) | (41,753,000 | ) | |||
Real estate and other deposits | (652,000 | ) | (2,815,000 | ) | |||
Net cash used in investing activities | (72,055,000 | ) | (109,552,000 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Borrowings under mortgage loans payable | 182,417,000 | 177,637,000 | |||||
Payments on mortgage loans payable | (59,706,000 | ) | (7,539,000 | ) | |||
Payoff of mortgage loans payable | (6,286,000 | ) | (94,449,000 | ) | |||
Borrowings under the lines of credit and term loans | 955,053,000 | 206,664,000 | |||||
Payments on the lines of credit and term loans | (937,822,000 | ) | (132,716,000 | ) | |||
Payments under financing obligations | (6,243,000 | ) | (5,329,000 | ) | |||
Deferred financing costs | (12,486,000 | ) | (4,130,000 | ) | |||
Debt extinguishment costs | (251,000 | ) | — | ||||
Other obligations | — | (1,000,000 | ) | ||||
Repurchase of common stock | (72,200,000 | ) | (53,027,000 | ) | |||
Repurchase of stock warrants and redeemable noncontrolling interest | (475,000 | ) | (306,000 | ) | |||
Contributions from noncontrolling interests | 3,000,000 | 4,470,000 |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Distributions to noncontrolling interests | $ | (5,449,000 | ) | $ | (5,243,000 | ) | |
Contributions from redeemable noncontrolling interests | — | 535,000 | |||||
Distributions to redeemable noncontrolling interests | (1,033,000 | ) | (497,000 | ) | |||
Security deposits and other | 36,000 | 91,000 | |||||
Distributions paid | (46,716,000 | ) | (44,702,000 | ) | |||
Net cash (used in) provided by financing activities | (8,161,000 | ) | 40,459,000 | ||||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ | 11,576,000 | $ | 7,204,000 | |||
EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (108,000 | ) | (53,000 | ) | |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 72,705,000 | 64,143,000 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | $ | 84,173,000 | $ | 71,294,000 | |||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Beginning of period: | |||||||
Cash and cash equivalents | $ | 35,132,000 | $ | 33,656,000 | |||
Restricted cash | 37,573,000 | 30,487,000 | |||||
Cash, cash equivalents and restricted cash | $ | 72,705,000 | $ | 64,143,000 | |||
End of period: | |||||||
Cash and cash equivalents | $ | 46,709,000 | $ | 34,925,000 | |||
Restricted cash | 37,464,000 | 36,369,000 | |||||
Cash, cash equivalents and restricted cash | $ | 84,173,000 | $ | 71,294,000 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid for: | |||||||
Interest | $ | 52,171,000 | $ | 43,016,000 | |||
Income taxes | $ | 634,000 | $ | 764,000 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES | |||||||
Investing Activities: | |||||||
Accrued capital expenditures | $ | 16,440,000 | $ | 15,162,000 | |||
Capital expenditures from financing obligations | $ | 8,434,000 | $ | 5,194,000 | |||
Tenant improvement overage | $ | 1,016,000 | $ | 1,014,000 | |||
Investments in unconsolidated entity | $ | 5,276,000 | $ | — | |||
The following represents the increase (decrease) in certain liabilities in connection with our acquisitions of real estate investments: | |||||||
Other assets, net | $ | — | $ | (1,587,000 | ) | ||
Accounts payable and accrued liabilities | $ | 46,000 | $ | 47,000 | |||
Prepaid rent | $ | 105,000 | $ | 223,000 | |||
Financing Activities: | |||||||
Issuance of common stock under the DRIP | $ | 42,100,000 | $ | 45,444,000 | |||
Distributions declared but not paid | $ | 9,673,000 | $ | 9,875,000 | |||
Payable to transfer agent | $ | 256,000 | $ | 72,000 | |||
Reclassification of noncontrolling interests to mezzanine equity | $ | 585,000 | $ | 585,000 | |||
Accrued deferred financing costs | $ | 77,000 | $ | — |
Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Point in Time | Over Time | Total | Point in Time | Over Time | Total | |||||||||||||||||||
Integrated senior health campuses | $ | 53,215,000 | $ | 203,833,000 | $ | 257,048,000 | $ | 46,525,000 | $ | 189,080,000 | $ | 235,605,000 | ||||||||||||
Senior housing — RIDEA(1) | 737,000 | 16,015,000 | 16,752,000 | 835,000 | 15,444,000 | 16,279,000 | ||||||||||||||||||
Total resident fees and services | $ | 53,952,000 | $ | 219,848,000 | $ | 273,800,000 | $ | 47,360,000 | $ | 204,524,000 | $ | 251,884,000 |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Point in Time | Over Time | Total | Point in Time | Over Time | Total | |||||||||||||||||||
Integrated senior health campuses | $ | 158,948,000 | $ | 605,855,000 | $ | 764,803,000 | $ | 136,347,000 | $ | 559,840,000 | $ | 696,187,000 | ||||||||||||
Senior housing — RIDEA(1) | 2,183,000 | 47,568,000 | 49,751,000 | 2,332,000 | 46,340,000 | 48,672,000 | ||||||||||||||||||
Total resident fees and services | $ | 161,131,000 | $ | 653,423,000 | $ | 814,554,000 | $ | 138,679,000 | $ | 606,180,000 | $ | 744,859,000 |
Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Integrated Senior Health Campuses | Senior Housing — RIDEA(1) | Total | Integrated Senior Health Campuses(2) | Senior Housing — RIDEA(1) | Total | |||||||||||||||||||
Medicare | $ | 81,965,000 | $ | — | $ | 81,965,000 | $ | 75,530,000 | $ | — | $ | 75,530,000 | ||||||||||||
Medicaid | 49,746,000 | 11,000 | 49,757,000 | 43,101,000 | 11,000 | 43,112,000 | ||||||||||||||||||
Private and other payors | 125,337,000 | 16,741,000 | 142,078,000 | 116,974,000 | 16,268,000 | 133,242,000 | ||||||||||||||||||
Total resident fees and services | $ | 257,048,000 | $ | 16,752,000 | $ | 273,800,000 | $ | 235,605,000 | $ | 16,279,000 | $ | 251,884,000 |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Integrated Senior Health Campuses | Senior Housing — RIDEA(1) | Total | Integrated Senior Health Campuses(2) | Senior Housing — RIDEA(1) | Total | |||||||||||||||||||
Medicare | $ | 250,923,000 | $ | — | $ | 250,923,000 | $ | 230,405,000 | $ | — | $ | 230,405,000 | ||||||||||||
Medicaid | 141,425,000 | 45,000 | 141,470,000 | 124,320,000 | 14,000 | 124,334,000 | ||||||||||||||||||
Private and other payors | 372,455,000 | 49,706,000 | 422,161,000 | 341,462,000 | 48,658,000 | 390,120,000 | ||||||||||||||||||
Total resident fees and services | $ | 764,803,000 | $ | 49,751,000 | $ | 814,554,000 | $ | 696,187,000 | $ | 48,672,000 | $ | 744,859,000 |
(1) | This includes fees for basic housing and assisted living care. We record revenue when services are rendered at amounts billable to individual residents. Residency agreements are generally for a term of 30 days, with resident fees billed monthly in advance. For patients under reimbursement arrangements with Medicaid, revenue is recorded based on contractually agreed-upon amounts or rates on a per resident, daily basis or as services are rendered. |
(2) | For the three and nine months ended September 30, 2018, Medicare includes $0 and $21,881,000, respectively, of revenue that was previously disclosed as Private and other payors. There was no net change in previously disclosed total resident fees and services. |
Medicare | Medicaid | Private and Other Payors | Total | |||||||||||||
Beginning balance — January 1, 2019 | $ | 29,160,000 | $ | 18,676,000 | $ | 39,112,000 | $ | 86,948,000 | ||||||||
Ending balance — September 30, 2019 | 28,172,000 | 22,463,000 | 45,139,000 | 95,774,000 | ||||||||||||
(Decrease)/Increase | $ | (988,000 | ) | $ | 3,787,000 | $ | 6,027,000 | $ | 8,826,000 |
Total | ||||
Beginning balance — January 1, 2019 | $ | 12,569,000 | ||
Ending balance — September 30, 2019 | 11,502,000 | |||
Decrease | $ | (1,067,000 | ) |
September 30, 2019 | December 31, 2018 | ||||||
Building, improvements and construction in process | $ | 2,231,745,000 | $ | 2,160,944,000 | |||
Land and improvements | 192,777,000 | 189,446,000 | |||||
Furniture, fixtures and equipment | 140,821,000 | 126,985,000 | |||||
2,565,343,000 | 2,477,375,000 | ||||||
Less: accumulated depreciation | (316,284,000 | ) | (254,694,000 | ) | |||
$ | 2,249,059,000 | $ | 2,222,681,000 |
Acquisition(1) | Location | Type | Date Acquired | Contract Purchase Price | Lines of Credit and Term Loans(2) | Acquisition Fee(3) | ||||||||||||
North Carolina ALF Portfolio | Garner, NC | Senior Housing | 03/27/19 | $ | 15,000,000 | $ | 15,000,000 | $ | 338,000 |
(1) | We own 100% of our property acquired in 2019. |
(2) | Represents a borrowing under the 2019 Corporate Line of Credit, as defined in Note 8, Lines of Credit and Term Loans, at the time of acquisition. |
(3) | Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.25% of the contract purchase price of such property. |
Location | Date Acquired | Contract Purchase Price | Lines of Credit and Term Loans(1) | Acquisition Fee(2) | ||||||||||
Corydon, IN | 09/05/19 | $ | 14,082,000 | $ | 14,114,000 | $ | 215,000 |
(1) | Represents borrowings under the 2019 Trilogy Credit Facility, as defined in Note 8, Lines of Credit and Term Loans, at the time of acquisition. |
(2) | Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.25% of the portion of the contract purchase price of the property attributed to our ownership interest of approximately 67.7% in the Trilogy subsidiary that acquired the property. |
2019 Real Estate Acquisitions | ||||
Building and improvements | $ | 23,191,000 | ||
Land | 6,565,000 | |||
In-place leases | 3,596,000 | |||
Total assets acquired | $ | 33,352,000 |
Balance | |||||||||||||||||
Origination Date | Maturity Date | Contractual Interest Rate | Maximum Advances Available | September 30, 2019 | December 31, 2018 | ||||||||||||
Mezzanine Fixed Rate Notes(1) | 02/04/15 | 12/09/19 | 6.75% | $ | — | $ | — | $ | 28,650,000 | ||||||||
Debt security investment(2) | 10/15/15 | 08/25/25 | 4.24% | N/A | 70,573,000 | 68,355,000 | |||||||||||
70,573,000 | 97,005,000 | ||||||||||||||||
Unamortized loan and closing costs, net | 1,413,000 | 1,650,000 | |||||||||||||||
$ | 71,986,000 | $ | 98,655,000 |
(1) | The Mezzanine Fixed Rate Notes evidence interests in a portion of a mezzanine loan that is secured by pledges of equity interests in the owners of a portfolio of domestic healthcare properties, which such owners are themselves owned indirectly by a non-wholly owned subsidiary of Colony Capital. In June 2019, the Mezzanine Fixed Rate Notes were paid in full by the borrower. |
(2) | The commercial mortgage-backed debt security, or the debt security, bears an interest rate on the stated principal amount thereof equal to 4.24% per annum, the terms of which security provide for monthly interest-only payments. The debt security matures on August 25, 2025 at a stated amount of $93,433,000, resulting in an anticipated yield-to-maturity of 10.0% per annum. The debt security was issued by an unaffiliated mortgage trust and represents a 10.0% beneficial ownership interest in such mortgage trust. The debt security is subordinate to all other interests in the mortgage trust and is not guaranteed by a government-sponsored entity. As of September 30, 2019 and December 31, 2018, the net carrying amount with accretion was $71,986,000 and $69,873,000, respectively. We classify our debt security investment as held-to-maturity and we have not recorded any unrealized holding gains or losses on such investment. |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Beginning balance | $ | 98,655,000 | $ | 97,988,000 | |||
Additions: | |||||||
Accretion on debt security | 2,218,000 | 2,010,000 | |||||
Deductions: | |||||||
Principal repayments on real estate notes receivable | (28,650,000 | ) | — | ||||
Amortization of loan and closing costs | (237,000 | ) | (185,000 | ) | |||
Ending balance | $ | 71,986,000 | $ | 99,813,000 |
September 30, 2019 | December 31, 2018 | ||||||
Amortized intangible assets: | |||||||
In-place leases, net of accumulated amortization of $21,769,000 and $23,497,000 as of September 30, 2019 and December 31, 2018, respectively (with a weighted average remaining life of 9.3 years and 9.8 years as of September 30, 2019 and December 31, 2018, respectively) | $ | 31,947,000 | $ | 45,815,000 | |||
Leasehold interests, net of accumulated amortization of $548,000 as of December 31, 2018 (with a weighted average remaining life of 53.6 years as of December 31, 2018)(1) | — | 7,346,000 | |||||
Customer relationships, net of accumulated amortization of $299,000 and $187,000 as of September 30, 2019 and December 31, 2018, respectively (with a weighted average remaining life of 17.0 years and 18.8 years as of September 30, 2019 and December 31, 2018, respectively) | 2,541,000 | 2,653,000 | |||||
Above-market leases, net of accumulated amortization of $2,180,000 and $2,851,000 as of September 30, 2019 and December 31, 2018, respectively (with a weighted average remaining life of 5.0 years and 5.2 years as of September 30, 2019 and December 31, 2018, respectively) | 1,584,000 | 2,059,000 | |||||
Internally developed technology and software, net of accumulated amortization of $188,000 and $117,000 as of September 30, 2019 and December 31, 2018, respectively (with a weighted average remaining life of 3.0 years and 3.8 years as of September 30, 2019 and December 31, 2018, respectively) | 282,000 | 353,000 | |||||
Unamortized intangible assets: | |||||||
Certificates of need | 93,932,000 | 88,590,000 | |||||
Trade names | 30,787,000 | 30,787,000 | |||||
Purchase option asset(2) | — | 1,918,000 | |||||
$ | 161,073,000 | $ | 179,521,000 |
(1) | Such amount related to our ownership of fee simple interests in the building and improvements of 16 of our buildings that are subject to respective ground leases. Upon our adoption of ASC Topic 842 on January 1, 2019, such amount was reclassed to operating lease right-of-use assets in our accompanying condensed consolidated balance sheet. See Note 2, Summary of Significant Accounting Policies — Leases, and Note 17, Leases, for a further discussion. |
(2) | For the nine months ended September 30, 2019, we exercised our right to acquire a property through our unconsolidated investment in RHS Partners, LLC, or RHS. The value of the purchase option asset utilized was $1,918,000. See Note 6, Other Assets, Net for a further discussion. |
Year | Amount | |||
2019 | $ | 1,915,000 | ||
2020 | 6,377,000 | |||
2021 | 4,727,000 | |||
2022 | 4,014,000 | |||
2023 | 3,241,000 | |||
Thereafter | 16,080,000 | |||
$ | 36,354,000 |
September 30, 2019 | December 31, 2018 | ||||||
Deferred rent receivables | $ | 31,693,000 | $ | 23,334,000 | |||
Prepaid expenses, deposits and other assets | 26,059,000 | 29,803,000 | |||||
Investment in unconsolidated entities | 20,477,000 | 15,432,000 | |||||
Inventory | 19,457,000 | 21,151,000 | |||||
Deferred tax assets, net(1) | 12,023,000 | 9,461,000 | |||||
Lease commissions, net of accumulated amortization of $1,934,000 and $1,274,000 as of September 30, 2019 and December 31, 2018, respectively | 10,403,000 | 8,523,000 | |||||
Deferred financing costs, net of accumulated amortization of $1,356,000 and $12,487,000 as of September 30, 2019 and December 31, 2018, respectively(2) | 8,690,000 | 2,311,000 | |||||
Lease inducement, net of accumulated amortization of $1,053,000 and $789,000 as of September 30, 2019 and December 31, 2018, respectively (with a weighted average remaining life of 11.2 years and 12.0 years as of September 30, 2019 and December 31, 2018, respectively) | 3,947,000 | 4,211,000 | |||||
$ | 132,749,000 | $ | 114,226,000 |
(1) | See Note 16, Income Taxes, for a further discussion. |
(2) | Deferred financing costs only include costs related to our lines of credit and term loans. |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
RHS | Other | Total | RHS | Other | Total | ||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||
Total assets | $ | 280,791,000 | $ | 17,463,000 | $ | 298,254,000 | $ | 48,291,000 | $ | 100,000 | $ | 48,391,000 | |||||||||||
Total liabilities | $ | 253,541,000 | $ | 17,346,000 | $ | 270,887,000 | $ | 25,263,000 | $ | — | $ | 25,263,000 |
Three Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
RHS | Other | Total | RHS | Other | Total | ||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||
Revenues | $ | 35,669,000 | $ | 2,954,000 | $ | 38,623,000 | $ | 32,346,000 | $ | — | $ | 32,346,000 | |||||||||||
Expenses | 36,630,000 | 3,637,000 | 40,267,000 | 34,622,000 | — | 34,622,000 | |||||||||||||||||
Net loss | $ | (961,000 | ) | $ | (683,000 | ) | $ | (1,644,000 | ) | $ | (2,276,000 | ) | $ | — | $ | (2,276,000 | ) |
Nine Months Ended September 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
RHS | Other | Total | RHS | Other | Total | ||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||
Revenues | $ | 106,099,000 | $ | 4,030,000 | $ | 110,129,000 | $ | 96,516,000 | $ | — | $ | 96,516,000 | |||||||||||
Expenses | 108,604,000 | 5,114,000 | 113,718,000 | 103,861,000 | — | 103,861,000 | |||||||||||||||||
Net loss | $ | (2,505,000 | ) | $ | (1,084,000 | ) | $ | (3,589,000 | ) | $ | (7,345,000 | ) | $ | — | $ | (7,345,000 | ) |
September 30, 2019 | December 31, 2018 | ||||||
Total fixed-rate debt | $ | 736,796,000 | $ | 624,616,000 | |||
Total variable-rate debt | 92,660,000 | 88,414,000 | |||||
Total fixed- and variable-rate debt | 829,456,000 | 713,030,000 | |||||
Less: deferred financing costs, net | (9,898,000 | ) | (8,824,000 | ) | |||
Add: premium | 394,000 | 663,000 | |||||
Less: discount | (14,695,000 | ) | (16,607,000 | ) | |||
Mortgage loans payable, net | $ | 805,257,000 | $ | 688,262,000 |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Beginning balance | $ | 688,262,000 | $ | 613,558,000 | |||
Additions: | |||||||
Borrowings on mortgage loans payable | 182,417,000 | 177,637,000 | |||||
Amortization of deferred financing costs | 1,187,000 | 995,000 | |||||
Amortization of discount/premium on mortgage loans payable | 502,000 | 365,000 | |||||
Deductions: | |||||||
Scheduled principal payments on mortgage loans payable | (59,706,000 | ) | (7,539,000 | ) | |||
Payoff of mortgage loans payable | (6,286,000 | ) | (94,449,000 | ) | |||
Deferred financing costs | (1,119,000 | ) | (3,613,000 | ) | |||
Ending balance | $ | 805,257,000 | $ | 686,954,000 |
Year | Amount | |||
2019 | $ | 20,675,000 | ||
2020 | 83,150,000 | |||
2021 | 35,778,000 | |||
2022 | 62,227,000 | |||
2023 | 32,431,000 | |||
Thereafter | 595,195,000 | |||
$ | 829,456,000 |
Fair Value | ||||||||||||||||||
Instrument | Notional Amount | Index | Interest Rate | Maturity Date | September 30, 2019 | December 31, 2018 | ||||||||||||
Swap | $ | 140,000,000 | one month LIBOR | 0.82% | 02/03/19 | $ | — | $ | 221,000 | |||||||||
Swap | 60,000,000 | one month LIBOR | 0.78% | 02/03/19 | — | 97,000 | ||||||||||||
Swap | 50,000,000 | one month LIBOR | 1.39% | 02/03/19 | — | 51,000 | ||||||||||||
Cap | 20,000,000 | one month LIBOR | 3.00% | 09/23/21 | 1,000 | 48,000 | ||||||||||||
Swap | 250,000,000 | one month LIBOR | 2.10% | 01/25/22 | (3,705,000 | ) | — | |||||||||||
Swap | 130,000,000 | one month LIBOR | 1.98% | 01/25/22 | (1,571,000 | ) | — | |||||||||||
$ | (5,275,000 | ) | $ | 417,000 |
Year | Amount | |||
2019 | $ | 88,000 | ||
2020 | 260,000 | |||
2021 | 143,000 | |||
2022 | 93,000 | |||
2023 | 78,000 | |||
Thereafter | 89,000 | |||
$ | 751,000 |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Beginning balance | $ | 38,245,000 | $ | 32,435,000 | |||
Additions | — | 535,000 | |||||
Reclassification from equity | 585,000 | 585,000 | |||||
Distributions | (1,033,000 | ) | (497,000 | ) | |||
Repurchase of redeemable noncontrolling interest | (400,000 | ) | (229,000 | ) | |||
Fair value adjustment to redemption value | 110,000 | 437,000 | |||||
Net income attributable to redeemable noncontrolling interests | 304,000 | 131,000 | |||||
Ending balance | $ | 37,811,000 | $ | 33,397,000 |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Beginning balance — foreign currency translation adjustments | $ | (2,560,000 | ) | $ | (1,971,000 | ) | |
Net change in current period | (301,000 | ) | (374,000 | ) | |||
Ending balance — foreign currency translation adjustments | $ | (2,861,000 | ) | $ | (2,345,000 | ) |
Approval Date by our Board | Estimated Per Share NAV (Unaudited) | |||
10/05/16 | $ | 9.01 | ||
10/04/17 | $ | 9.27 | ||
10/03/18 | $ | 9.37 | ||
10/03/19 | $ | 9.40 |
12 months ended September 30, | |||||
2019 | 2018 | ||||
Operating expenses as a percentage of average invested assets | 0.9 | % | 0.9 | % | |
Operating expenses as a percentage of net income | 20.1 | % | 18.4 | % |
Fee | September 30, 2019 | December 31, 2018 | ||||||
Asset and property management fees | $ | 1,921,000 | $ | 1,856,000 | ||||
Construction management fees | 163,000 | 58,000 | ||||||
Lease commissions | 54,000 | 94,000 | ||||||
Operating expenses | 9,000 | 12,000 | ||||||
Acquisition fees | — | 15,000 | ||||||
Development fees | — | 68,000 | ||||||
$ | 2,147,000 | $ | 2,103,000 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative financial instrument | $ | — | $ | 1,000 | $ | — | $ | 1,000 | |||||||
Total assets at fair value | $ | — | $ | 1,000 | $ | — | $ | 1,000 | |||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | $ | — | $ | 5,276,000 | $ | — | $ | 5,276,000 | |||||||
Warrants | — | — | 1,132,000 | 1,132,000 | |||||||||||
Total liabilities at fair value | $ | — | $ | 5,276,000 | $ | 1,132,000 | $ | 6,408,000 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | $ | — | $ | 417,000 | $ | — | $ | 417,000 | |||||||
Total assets at fair value | $ | — | $ | 417,000 | $ | — | $ | 417,000 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration obligation | $ | — | $ | — | $ | 681,000 | $ | 681,000 | |||||||
Warrants | — | — | 1,207,000 | 1,207,000 | |||||||||||
Total liabilities at fair value | $ | — | $ | — | $ | 1,888,000 | $ | 1,888,000 |
Range of Inputs or Inputs | ||
September 30, 2018 | ||
Unobservable Inputs | ||
Market rent per square foot | $13.75 to $25.00 | |
Capitalization rate | 7.50 | % |
Discount rate | 8.00 | % |
September 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial Assets: | |||||||||||||||
Debt security investment | $ | 71,986,000 | $ | 93,369,000 | $ | 69,873,000 | $ | 94,116,000 | |||||||
Financial Liabilities: | |||||||||||||||
Mortgage loans payable | $ | 805,257,000 | $ | 758,777,000 | $ | 688,262,000 | $ | 618,886,000 | |||||||
Lines of credit and term loans | $ | 746,589,000 | $ | 756,269,000 | $ | 735,737,000 | $ | 737,982,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Domestic | $ | (16,211,000 | ) | $ | 3,926,000 | $ | (8,896,000 | ) | $ | 12,248,000 | |||||
Foreign | (52,000 | ) | (146,000 | ) | (354,000 | ) | (258,000 | ) | |||||||
(Loss) Income before income taxes | $ | (16,263,000 | ) | $ | 3,780,000 | $ | (9,250,000 | ) | $ | 11,990,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Federal deferred | $ | (1,446,000 | ) | $ | (1,291,000 | ) | $ | (2,538,000 | ) | $ | (3,769,000 | ) | |||
State deferred | (242,000 | ) | (270,000 | ) | (381,000 | ) | (773,000 | ) | |||||||
State current | — | 4,000 | — | 4,000 | |||||||||||
Foreign current | 90,000 | 387,000 | 510,000 | 568,000 | |||||||||||
Valuation allowances | 2,438,000 | 1,126,000 | 3,559,000 | 3,029,000 | |||||||||||
Total income tax expense (benefit) | $ | 840,000 | $ | (44,000 | ) | $ | 1,150,000 | $ | (941,000 | ) |
Year | Amount | |||
2019 | $ | 24,160,000 | ||
2020 | 95,008,000 | |||
2021 | 93,183,000 | |||
2022 | 86,812,000 | |||
2023 | 79,402,000 | |||
Thereafter | 588,898,000 | |||
Total | $ | 967,463,000 |
Year | Amount | |||
2019 | $ | 92,888,000 | ||
2020 | 88,536,000 | |||
2021 | 86,362,000 | |||
2022 | 80,233,000 | |||
2023 | 72,535,000 | |||
Thereafter | 559,649,000 | |||
Total | $ | 980,203,000 |
Lease Cost | Classification | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | |||||||
Operating lease cost(1) | Property operating expenses and rental expenses | $ | 7,387,000 | $ | 22,507,000 | |||||
Finance lease cost | ||||||||||
Amortization of leased assets | Depreciation and amortization | 467,000 | 1,520,000 | |||||||
Accretion of lease liabilities | Interest expense | 146,000 | 278,000 | |||||||
Total lease cost | $ | 8,000,000 | $ | 24,305,000 |
(1) | Includes short-term leases and variable lease costs, which are immaterial. |
Supplemental Disclosure of Cash Flows Information | Nine Months Ended September 30, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 16,602,000 | ||
Operating cash flows from finance leases | $ | 277,000 | ||
Financing cash flows from finance leases | $ | 2,490,000 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 166,000 |
Lease Term and Discount Rate | As of September 30, 2019 | ||
Weighted average remaining lease term (in years) | |||
Operating leases | 13.4 | ||
Finance leases | 1.3 | ||
Weighted average discount rate | |||
Operating leases | 6.13 | % | |
Finance leases | 7.35 | % |
Year | Amount | |||
2019 | $ | 5,873,000 | ||
2020 | 21,838,000 | |||
2021 | 22,267,000 | |||
2022 | 22,605,000 | |||
2023 | 21,866,000 | |||
Thereafter | 176,970,000 | |||
Total operating lease payments | 271,419,000 | |||
Less: interest | 93,247,000 | |||
Present value of operating lease liabilities | $ | 178,172,000 |
Year | Amount | |||
2019 | $ | 22,194,000 | ||
2020 | 22,564,000 | |||
2021 | 23,166,000 | |||
2022 | 23,702,000 | |||
2023 | 23,154,000 | |||
Thereafter | 177,927,000 | |||
Total | $ | 292,707,000 |
Year | Amount | |||
2019 | $ | 631,000 | ||
2020 | 1,265,000 | |||
2021 | 130,000 | |||
2022 | — | |||
2023 | — | |||
Total finance lease payments | 2,026,000 | |||
Less: interest | 78,000 | |||
Present value of finance lease liabilities | $ | 1,948,000 |
Year | Amount(1) | |||
2019 | $ | 3,307,000 | ||
2020 | 1,266,000 | |||
2021 | 130,000 | |||
2022 | — | |||
2023 | — | |||
$ | 4,703,000 |
(1) | Amounts above represent principal of $4,438,000 and interest obligations of $265,000 under finance lease. |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Three Months Ended September 30, 2019 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 257,048,000 | $ | 16,752,000 | $ | — | $ | — | $ | — | $ | — | $ | 273,800,000 | ||||||||||||||
Real estate revenue | — | — | 19,890,000 | 2,601,000 | 2,672,000 | 2,799,000 | 27,962,000 | |||||||||||||||||||||
Total revenues | 257,048,000 | 16,752,000 | 19,890,000 | 2,601,000 | 2,672,000 | 2,799,000 | 301,762,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 230,349,000 | 11,509,000 | — | — | — | — | 241,858,000 | |||||||||||||||||||||
Rental expenses | — | — | 8,140,000 | 553,000 | 346,000 | 149,000 | 9,188,000 | |||||||||||||||||||||
Segment net operating income | $ | 26,699,000 | $ | 5,243,000 | $ | 11,750,000 | $ | 2,048,000 | $ | 2,326,000 | $ | 2,650,000 | $ | 50,716,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 7,675,000 | ||||||||||||||||||||||||||
Acquisition related expenses | 4,000 | |||||||||||||||||||||||||||
Depreciation and amortization | 36,778,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (21,046,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (1,169,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entities | (766,000 | ) | ||||||||||||||||||||||||||
Foreign currency loss | (1,464,000 | ) | ||||||||||||||||||||||||||
Other income | 1,923,000 | |||||||||||||||||||||||||||
Loss before income taxes | (16,263,000 | ) | ||||||||||||||||||||||||||
Income tax expense | (840,000 | ) | ||||||||||||||||||||||||||
Net loss | $ | (17,103,000 | ) |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Three Months Ended September 30, 2018 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 235,605,000 | $ | 16,279,000 | $ | — | $ | — | $ | — | $ | — | $ | 251,884,000 | ||||||||||||||
Real estate revenue | — | — | 20,029,000 | 5,472,000 | 3,716,000 | 3,078,000 | 32,295,000 | |||||||||||||||||||||
Total revenues | 235,605,000 | 16,279,000 | 20,029,000 | 5,472,000 | 3,716,000 | 3,078,000 | 284,179,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 212,519,000 | 11,146,000 | — | — | — | — | 223,665,000 | |||||||||||||||||||||
Rental expenses | — | — | 7,577,000 | 211,000 | 391,000 | 398,000 | 8,577,000 | |||||||||||||||||||||
Segment net operating income | $ | 23,086,000 | $ | 5,133,000 | $ | 12,452,000 | $ | 5,261,000 | $ | 3,325,000 | $ | 2,680,000 | $ | 51,937,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 6,900,000 | ||||||||||||||||||||||||||
Acquisition related expenses | (1,102,000 | ) | ||||||||||||||||||||||||||
Depreciation and amortization | 23,816,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium) | (16,538,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (750,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entities | (1,137,000 | ) | ||||||||||||||||||||||||||
Foreign currency loss | (619,000 | ) | ||||||||||||||||||||||||||
Other income | 501,000 | |||||||||||||||||||||||||||
Income before income taxes | 3,780,000 | |||||||||||||||||||||||||||
Income tax benefit | 44,000 | |||||||||||||||||||||||||||
Net income | $ | 3,824,000 |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 764,803,000 | $ | 49,751,000 | $ | — | $ | — | $ | — | $ | — | $ | 814,554,000 | ||||||||||||||
Real estate revenue | — | — | 60,548,000 | 14,184,000 | 9,998,000 | 8,467,000 | 93,197,000 | |||||||||||||||||||||
Total revenues | 764,803,000 | 49,751,000 | 60,548,000 | 14,184,000 | 9,998,000 | 8,467,000 | 907,751,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 681,996,000 | 34,704,000 | — | — | — | — | 716,700,000 | |||||||||||||||||||||
Rental expenses | — | — | 23,553,000 | 776,000 | 1,076,000 | 434,000 | 25,839,000 | |||||||||||||||||||||
Segment net operating income | $ | 82,807,000 | $ | 15,047,000 | $ | 36,995,000 | $ | 13,408,000 | $ | 8,922,000 | $ | 8,033,000 | $ | 165,212,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 21,104,000 | ||||||||||||||||||||||||||
Acquisition related expenses | (292,000 | ) | ||||||||||||||||||||||||||
Depreciation and amortization | 87,149,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (59,665,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (5,846,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entities | (1,713,000 | ) | ||||||||||||||||||||||||||
Foreign currency loss | (1,654,000 | ) | ||||||||||||||||||||||||||
Other income | 2,377,000 | |||||||||||||||||||||||||||
Loss before income taxes | (9,250,000 | ) | ||||||||||||||||||||||||||
Income tax expense | (1,150,000 | ) | ||||||||||||||||||||||||||
Net loss | $ | (10,400,000 | ) |
Integrated Senior Health Campuses | Senior Housing — RIDEA | Medical Office Buildings | Senior Housing | Skilled Nursing Facilities | Hospitals | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Resident fees and services | $ | 696,187,000 | $ | 48,672,000 | $ | — | $ | — | $ | — | $ | — | $ | 744,859,000 | ||||||||||||||
Real estate revenue | — | — | 60,316,000 | 16,265,000 | 11,183,000 | 9,711,000 | 97,475,000 | |||||||||||||||||||||
Total revenues | 696,187,000 | 48,672,000 | 60,316,000 | 16,265,000 | 11,183,000 | 9,711,000 | 842,334,000 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Property operating expenses | 626,091,000 | 33,204,000 | — | — | — | — | 659,295,000 | |||||||||||||||||||||
Rental expenses | — | — | 23,255,000 | 583,000 | 1,207,000 | 1,219,000 | 26,264,000 | |||||||||||||||||||||
Segment net operating income | $ | 70,096,000 | $ | 15,468,000 | $ | 37,061,000 | $ | 15,682,000 | $ | 9,976,000 | $ | 8,492,000 | $ | 156,775,000 | ||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
General and administrative | $ | 19,910,000 | ||||||||||||||||||||||||||
Acquisition related expenses | (1,657,000 | ) | ||||||||||||||||||||||||||
Depreciation and amortization | 70,190,000 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium) | (48,369,000 | ) | ||||||||||||||||||||||||||
Loss in fair value of derivative financial instruments | (1,127,000 | ) | ||||||||||||||||||||||||||
Impairment of real estate investment | (2,542,000 | ) | ||||||||||||||||||||||||||
Loss from unconsolidated entities | (3,672,000 | ) | ||||||||||||||||||||||||||
Foreign currency loss | (1,652,000 | ) | ||||||||||||||||||||||||||
Other income | 1,020,000 | |||||||||||||||||||||||||||
Income before income taxes | 11,990,000 | |||||||||||||||||||||||||||
Income tax benefit | 941,000 | |||||||||||||||||||||||||||
Net income | $ | 12,931,000 |
September 30, 2019 | December 31, 2018 | ||||||
Integrated senior health campuses | $ | 1,714,145,000 | $ | 1,478,147,000 | |||
Medical office buildings | 621,240,000 | 646,784,000 | |||||
Senior housing — RIDEA | 265,572,000 | 271,381,000 | |||||
Senior housing | 242,790,000 | 242,686,000 | |||||
Skilled nursing facilities | 126,664,000 | 127,809,000 | |||||
Hospitals | 115,152,000 | 118,685,000 | |||||
Other | 5,846,000 | 3,600,000 | |||||
Total assets | $ | 3,091,409,000 | $ | 2,889,092,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
United States | $ | 300,609,000 | $ | 282,977,000 | $ | 904,152,000 | $ | 838,603,000 | |||||||
International | 1,153,000 | 1,202,000 | 3,599,000 | 3,731,000 | |||||||||||
$ | 301,762,000 | $ | 284,179,000 | $ | 907,751,000 | $ | 842,334,000 |
September 30, 2019 | December 31, 2018 | ||||||
Real estate investments, net: | |||||||
United States | $ | 2,201,702,000 | $ | 2,173,395,000 | |||
International | 47,357,000 | 49,286,000 | |||||
$ | 2,249,059,000 | $ | 2,222,681,000 |
September 30, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Number of Buildings/ Campuses | Aggregate Contract Purchase Price | Leased % | Number of Buildings/ Campuses | Aggregate Contract Purchase Price | Leased % | ||||||||||||||
Integrated senior health campuses | 113 | $ | 1,528,470,000 | (1 | ) | 111 | $ | 1,493,028,000 | (1 | ) | |||||||||
Medical office buildings | 64 | 664,135,000 | 89.1 | % | 64 | 664,135,000 | 89.3 | % | |||||||||||
Senior housing | 16 | 203,391,000 | 100 | % | 15 | 188,391,000 | 100 | % | |||||||||||
Senior housing — RIDEA | 13 | 320,035,000 | (2 | ) | 13 | 320,035,000 | (2 | ) | |||||||||||
Skilled nursing facilities | 7 | 128,000,000 | 100 | % | 7 | 128,000,000 | 100 | % | |||||||||||
Hospitals | 2 | 139,780,000 | 100 | % | 2 | 139,780,000 | 100 | % | |||||||||||
Total/weighted average(3) | 215 | $ | 2,983,811,000 | 92.4 | % | 212 | $ | 2,933,369,000 | 92.5 | % |
(1) | For the three and nine months ended September 30, 2019, the leased percentage for the resident units of our integrated senior health campuses was 86.9% and 86.1%, respectively. For the three and nine months ended September 30, 2018, the leased percentage for the resident units of our integrated senior health campuses was 83.8% and 84.2%, respectively. |
(2) | For the three and nine months ended September 30, 2019, the leased percentage for the resident units of our senior housing — RIDEA facilities was 82.3% and 82.8%, respectively. For the three and nine months ended September 30, 2018, the leased percentage for the resident units of our senior housing — RIDEA facilities was 84.5% and 84.8%, respectively. |
(3) | Leased percentage excludes our senior housing — RIDEA facilities and integrated senior health campuses. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Resident Fees and Services | |||||||||||||||
Integrated senior health campuses | $ | 257,048,000 | $ | 235,605,000 | $ | 764,803,000 | $ | 696,187,000 | |||||||
Senior housing — RIDEA | 16,752,000 | 16,279,000 | 49,751,000 | 48,672,000 | |||||||||||
Total resident fees and services | 273,800,000 | 251,884,000 | 814,554,000 | 744,859,000 | |||||||||||
Real Estate Revenue | |||||||||||||||
Medical office buildings | 19,890,000 | 20,029,000 | 60,548,000 | 60,316,000 | |||||||||||
Senior housing | 2,601,000 | 5,472,000 | 14,184,000 | 16,265,000 | |||||||||||
Skilled nursing facilities | 2,672,000 | 3,716,000 | 9,998,000 | 11,183,000 | |||||||||||
Hospitals | 2,799,000 | 3,078,000 | 8,467,000 | 9,711,000 | |||||||||||
Total real estate revenue | 27,962,000 | 32,295,000 | 93,197,000 | 97,475,000 | |||||||||||
Total revenues | $ | 301,762,000 | $ | 284,179,000 | $ | 907,751,000 | $ | 842,334,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Property Operating Expenses | |||||||||||||||||||||||||||
Integrated senior health campuses | $ | 230,349,000 | 89.6 | % | $ | 212,519,000 | 90.2 | % | $ | 681,996,000 | 89.2 | % | $ | 626,091,000 | 89.9 | % | |||||||||||
Senior housing — RIDEA | 11,509,000 | 68.7 | % | 11,146,000 | 68.5 | % | 34,704,000 | 69.8 | % | 33,204,000 | 68.2 | % | |||||||||||||||
Total property operating expenses | $ | 241,858,000 | 88.3 | % | $ | 223,665,000 | 88.8 | % | $ | 716,700,000 | 88.0 | % | $ | 659,295,000 | 88.5 | % | |||||||||||
Rental Expenses | |||||||||||||||||||||||||||
Medical office buildings | $ | 8,140,000 | 40.9 | % | $ | 7,577,000 | 37.8 | % | $ | 23,553,000 | 38.9 | % | $ | 23,255,000 | 38.6 | % | |||||||||||
Skilled nursing facilities | 346,000 | 12.9 | % | 391,000 | 10.5 | % | 1,076,000 | 10.8 | % | 1,207,000 | 10.8 | % | |||||||||||||||
Hospitals | 149,000 | 5.3 | % | 398,000 | 12.9 | % | 434,000 | 5.1 | % | 1,219,000 | 12.6 | % | |||||||||||||||
Senior housing | 553,000 | 21.3 | % | 211,000 | 3.9 | % | 776,000 | 5.5 | % | 583,000 | 3.6 | % | |||||||||||||||
Total rental expenses | $ | 9,188,000 | 32.9 | % | $ | 8,577,000 | 26.6 | % | $ | 25,839,000 | 27.7 | % | $ | 26,264,000 | 26.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Asset management fees — affiliates | $ | 5,021,000 | $ | 4,873,000 | $ | 15,018,000 | $ | 14,438,000 | |||||||
Professional and legal fees | 1,226,000 | 1,030,000 | 2,391,000 | 1,963,000 | |||||||||||
Bad debt expense | 473,000 | 48,000 | 745,000 | 331,000 | |||||||||||
Transfer agent services | 348,000 | 305,000 | 1,005,000 | 928,000 | |||||||||||
Stock compensation expense | 195,000 | 195,000 | 585,000 | 585,000 | |||||||||||
Directors’ and officers’ liability insurance | 78,000 | 78,000 | 236,000 | 236,000 | |||||||||||
Restricted stock compensation | 72,000 | 72,000 | 172,000 | 171,000 | |||||||||||
Bank charges | 72,000 | 113,000 | 174,000 | 331,000 | |||||||||||
Board of directors fees | 68,000 | 72,000 | 208,000 | 190,000 | |||||||||||
Franchise taxes | 56,000 | 101,000 | 254,000 | 348,000 | |||||||||||
Other | 66,000 | 13,000 | 316,000 | 389,000 | |||||||||||
Total | $ | 7,675,000 | $ | 6,900,000 | $ | 21,104,000 | $ | 19,910,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest expense — lines of credit and term loans and derivative financial instruments | $ | 8,757,000 | $ | 7,646,000 | $ | 27,975,000 | $ | 21,117,000 | |||||||
Interest expense — mortgage loans payable | 8,383,000 | 7,186,000 | 24,254,000 | 21,448,000 | |||||||||||
Amortization of deferred financing costs — lines of credit and term loans | 882,000 | 981,000 | 2,882,000 | 3,578,000 | |||||||||||
Amortization of deferred financing costs — mortgage loans payable | 483,000 | 346,000 | 1,122,000 | 995,000 | |||||||||||
Amortization of debt discount/premium, net | 164,000 | 88,000 | 502,000 | 365,000 | |||||||||||
Loss in fair value of derivative financial instruments | 1,169,000 | 750,000 | 5,846,000 | 1,127,000 | |||||||||||
Loss on extinguishment of debt | 2,179,000 | — | 2,179,000 | — | |||||||||||
Accretion of finance lease liabilities | 146,000 | — | 277,000 | — | |||||||||||
Interest expense on financing obligations and other liabilities | 52,000 | 291,000 | 474,000 | 866,000 | |||||||||||
Total | $ | 22,215,000 | $ | 17,288,000 | $ | 65,511,000 | $ | 49,496,000 |
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash, cash equivalents and restricted cash — beginning of period | $ | 72,705,000 | $ | 64,143,000 | ||||
Net cash provided by operating activities | 91,792,000 | 76,297,000 | ||||||
Net cash used in investing activities | (72,055,000 | ) | (109,552,000 | ) | ||||
Net cash (used in) provided by financing activities | (8,161,000 | ) | 40,459,000 | |||||
Effect of foreign currency translation on cash, cash equivalents and restricted cash | (108,000 | ) | (53,000 | ) | ||||
Cash, cash equivalents and restricted cash — end of period | $ | 84,173,000 | $ | 71,294,000 |
Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | ||||||||||||
Distributions paid in cash | $ | 46,716,000 | $ | 44,702,000 | |||||||||
Distributions reinvested | 42,100,000 | 45,444,000 | |||||||||||
$ | 88,816,000 | $ | 90,146,000 | ||||||||||
Sources of distributions: | |||||||||||||
Cash flows from operations | $ | 88,816,000 | 100 | % | $ | 76,297,000 | 84.6 | % | |||||
Proceeds from borrowings | — | — | 13,849,000 | 15.4 | |||||||||
$ | 88,816,000 | 100 | % | $ | 90,146,000 | 100 | % |
Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | ||||||||||||
Distributions paid in cash | $ | 46,716,000 | $ | 44,702,000 | |||||||||
Distributions reinvested | 42,100,000 | 45,444,000 | |||||||||||
$ | 88,816,000 | $ | 90,146,000 | ||||||||||
Sources of distributions: | |||||||||||||
FFO attributable to controlling interest | $ | 62,244,000 | 70.1 | % | $ | 74,015,000 | 82.1 | % | |||||
Proceeds from borrowings | 26,572,000 | 29.9 | 16,131,000 | 17.9 | |||||||||
$ | 88,816,000 | 100 | % | $ | 90,146,000 | 100 | % |
Payments Due by Period | |||||||||||||||||||
2019 | 2020-2021 | 2022-2023 | Thereafter | Total | |||||||||||||||
Principal payments — fixed-rate debt | $ | 3,131,000 | $ | 48,793,000 | $ | 91,518,000 | $ | 593,354,000 | $ | 736,796,000 | |||||||||
Interest payments — fixed-rate debt | 6,800,000 | 52,233,000 | 46,493,000 | 284,603,000 | 390,129,000 | ||||||||||||||
Principal payments — variable-rate debt | 17,544,000 | 70,135,000 | 758,419,000 | 1,841,000 | 847,939,000 | ||||||||||||||
Interest payments — variable-rate debt (based on rates in effect as of September 30, 2019) | 9,138,000 | 68,191,000 | 22,268,000 | 42,000 | 99,639,000 | ||||||||||||||
Ground and other lease obligations | 5,873,000 | 44,105,000 | 44,471,000 | 176,970,000 | 271,419,000 | ||||||||||||||
Financing and other obligations | 965,000 | 25,324,000 | 2,007,000 | — | 28,296,000 | ||||||||||||||
Finance leases | 631,000 | 1,395,000 | — | — | 2,026,000 | ||||||||||||||
Total | $ | 44,082,000 | $ | 310,176,000 | $ | 965,176,000 | $ | 1,056,810,000 | $ | 2,376,244,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net (loss) income | $ | (17,103,000 | ) | $ | 3,824,000 | $ | (10,400,000 | ) | $ | 12,931,000 | |||||
Add: | |||||||||||||||
Depreciation and amortization related to real estate — consolidated properties | 36,778,000 | 23,816,000 | 87,149,000 | 70,190,000 | |||||||||||
Depreciation and amortization related to real estate — unconsolidated entities | 367,000 | 270,000 | 819,000 | 847,000 | |||||||||||
Impairment of real estate investment | — | — | — | 2,542,000 | |||||||||||
Less: | |||||||||||||||
Net income attributable to redeemable noncontrolling interests and noncontrolling interests | (201,000 | ) | (212,000 | ) | (2,979,000 | ) | (1,224,000 | ) | |||||||
Depreciation, amortization and impairment related to redeemable noncontrolling interests and noncontrolling interests | (4,106,000 | ) | (3,902,000 | ) | (12,345,000 | ) | (11,271,000 | ) | |||||||
FFO attributable to controlling interest | $ | 15,735,000 | $ | 23,796,000 | $ | 62,244,000 | $ | 74,015,000 | |||||||
Acquisition related expenses(1) | $ | 4,000 | $ | (1,102,000 | ) | $ | (292,000 | ) | $ | (1,657,000 | ) | ||||
Amortization of above- and below-market leases(2) | 40,000 | 103,000 | 175,000 | 390,000 | |||||||||||
Amortization of loan and closing costs(3) | 37,000 | 64,000 | 237,000 | 185,000 | |||||||||||
Change in deferred rent(4) | 2,450,000 | (1,896,000 | ) | 1,136,000 | (4,650,000 | ) | |||||||||
Loss on extinguishment of debt(5) | 2,179,000 | — | 2,179,000 | — | |||||||||||
Loss in fair value of derivative financial instruments(6) | 1,169,000 | 750,000 | 5,846,000 | 1,127,000 | |||||||||||
Foreign currency loss(7) | 1,464,000 | 619,000 | 1,654,000 | 1,652,000 | |||||||||||
Adjustments for unconsolidated entities(8) | 344,000 | 402,000 | 1,099,000 | 1,257,000 | |||||||||||
Adjustments for redeemable noncontrolling interests and noncontrolling interests(8) | (1,110,000 | ) | (146,000 | ) | (2,035,000 | ) | (966,000 | ) | |||||||
MFFO attributable to controlling interest | $ | 22,312,000 | $ | 22,590,000 | $ | 72,243,000 | $ | 71,353,000 | |||||||
Weighted average common shares outstanding — basic and diluted | 195,669,002 | 199,818,444 | 196,705,085 | 200,120,637 | |||||||||||
Net (loss) income per common share — basic and diluted | $ | (0.09 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.06 | |||||
FFO attributable to controlling interest per common share — basic and diluted | $ | 0.08 | $ | 0.12 | $ | 0.32 | $ | 0.37 | |||||||
MFFO attributable to controlling interest per common share — basic and diluted | $ | 0.11 | $ | 0.11 | $ | 0.37 | $ | 0.36 |
(1) | In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition related expenses, we believe MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or its affiliates and third parties. |
(2) | Under GAAP, above- and below-market leases are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate-related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, we believe that by excluding charges relating to the amortization of above- and below-market leases, MFFO may provide useful supplemental information on the performance of the real estate. |
(3) | Under GAAP, direct loan and closing costs are amortized over the term of our notes receivable and debt security investment as an adjustment to the yield on our notes receivable or debt security investment. This may result in income recognition that is different than the contractual cash flows under our notes receivable and debt security investment. By adjusting for the amortization of the loan and closing costs related to our real estate notes receivable and debt security investment, MFFO may provide useful supplemental information on the realized economic impact of our notes receivable and debt security investment terms, providing insight on the expected contractual cash flows of such notes receivable and debt security investment, and aligns results with our analysis of operating performance. |
(4) | Under GAAP, as a lessor, rental revenue is recognized on a straight-line basis over the terms of the related lease (including rent holidays). As a lessee, we record amortization of right-of-use assets and accretion of lease liabilities for our operating leases. This may result in income or expense recognition that is significantly different than the underlying contract terms. By adjusting for the change in deferred rent, MFFO may provide useful supplemental information on the realized economic impact of lease terms, providing insight on the expected contractual cash flows of such lease terms, and aligns results with our analysis of operating performance. |
(5) | The loss associated with the early extinguishment of debt primarily includes the write-off of unamortized deferred financing fees, write-off of unamortized debt discount, penalties or other fees incurred. We believe that adjusting for such non-recurring losses provides useful supplemental information because such charges (or losses) may not be reflective of on-going business transactions and operations and is consistent with management’s analysis of our operating performance. |
(6) | Under GAAP, we are required to include changes in fair value of our derivative financial instruments in the determination of net income or loss. We believe that adjusting for the change in fair value of our derivative financial instruments is appropriate because such adjustments may not be reflective of on-going operations and reflect unrealized impacts on value based only on then current market conditions, although they may be based upon general market conditions. The need to reflect the change in fair value of our derivative financial instruments is a continuous process and is analyzed on a quarterly basis in accordance with GAAP. |
(7) | We believe that adjusting for the change in foreign currency exchange rates provides useful information because such adjustments may not be reflective of on-going operations. |
(8) | Includes all adjustments to eliminate the unconsolidated entities’ share or redeemable noncontrolling interests and noncontrolling interests’ share, as applicable, of the adjustments described in notes (1) – (7) above to convert our FFO to MFFO. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net (loss) income | $ | (17,103,000 | ) | $ | 3,824,000 | $ | (10,400,000 | ) | $ | 12,931,000 | |||||
General and administrative | 7,675,000 | 6,900,000 | 21,104,000 | 19,910,000 | |||||||||||
Acquisition related expenses | 4,000 | (1,102,000 | ) | (292,000 | ) | (1,657,000 | ) | ||||||||
Depreciation and amortization | 36,778,000 | 23,816,000 | 87,149,000 | 70,190,000 | |||||||||||
Interest expense | 22,215,000 | 17,288,000 | 65,511,000 | 49,496,000 | |||||||||||
Impairment of real estate investment | — | — | — | 2,542,000 | |||||||||||
Loss from unconsolidated entities | 766,000 | 1,137,000 | 1,713,000 | 3,672,000 | |||||||||||
Foreign currency loss | 1,464,000 | 619,000 | 1,654,000 | 1,652,000 | |||||||||||
Other income | (1,923,000 | ) | (501,000 | ) | (2,377,000 | ) | (1,020,000 | ) | |||||||
Income tax expense (benefit) | 840,000 | (44,000 | ) | 1,150,000 | (941,000 | ) | |||||||||
Net operating income | $ | 50,716,000 | $ | 51,937,000 | $ | 165,212,000 | $ | 156,775,000 |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Debt security held-to-maturity | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 93,433,000 | $ | 93,433,000 | $ | 93,369,000 | |||||||||||||||
Weighted average interest rate on maturing fixed-rate debt security | — | % | — | % | — | % | — | % | — | % | 4.24 | % | 4.24 | % | — | ||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed-rate debt — principal payments | $ | 3,131,000 | $ | 35,535,000 | $ | 13,258,000 | $ | 62,227,000 | $ | 29,291,000 | $ | 593,354,000 | $ | 736,796,000 | $ | 665,921,000 | |||||||||||||||
Weighted average interest rate on maturing fixed-rate debt | 3.76 | % | 5.11 | % | 3.70 | % | 4.14 | % | 4.14 | % | 3.62 | % | 3.76 | % | — | ||||||||||||||||
Variable-rate debt — principal payments | $ | 17,544,000 | $ | 47,615,000 | $ | 22,520,000 | $ | 517,500,000 | $ | 240,919,000 | $ | 1,841,000 | $ | 847,939,000 | $ | 849,125,000 | |||||||||||||||
Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of September 30, 2019) | 5.85 | % | 5.05 | % | 4.96 | % | 3.91 | % | 4.81 | % | 5.38 | % | 4.31 | % | — |
Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | ||||||||||||
Distributions paid in cash | $ | 46,716,000 | $ | 44,702,000 | |||||||||
Distributions reinvested | 42,100,000 | 45,444,000 | |||||||||||
$ | 88,816,000 | $ | 90,146,000 | ||||||||||
Sources of distributions: | |||||||||||||
Cash flows from operations | $ | 88,816,000 | 100 | % | $ | 76,297,000 | 84.6 | % | |||||
Proceeds from borrowings | — | — | 13,849,000 | 15.4 | |||||||||
$ | 88,816,000 | 100 | % | $ | 90,146,000 | 100 | % |
Nine Months Ended September 30, | |||||||||||||
2019 | 2018 | ||||||||||||
Distributions paid in cash | $ | 46,716,000 | $ | 44,702,000 | |||||||||
Distributions reinvested | 42,100,000 | 45,444,000 | |||||||||||
$ | 88,816,000 | $ | 90,146,000 | ||||||||||
Sources of distributions: | |||||||||||||
FFO attributable to controlling interest | $ | 62,244,000 | 70.1 | % | $ | 74,015,000 | 82.1 | % | |||||
Proceeds from borrowings | 26,572,000 | 29.9 | 16,131,000 | 17.9 | |||||||||
$ | 88,816,000 | 100 | % | $ | 90,146,000 | 100 | % |
• | a stockholder would be able to resell his or her shares at our updated estimated per share NAV; |
• | a stockholder would ultimately realize distributions per share equal to our updated estimated per share NAV upon liquidation of our assets and settlement of our liabilities or a sale of the company; |
• | our shares of common stock would trade at our updated estimated per share NAV on a national securities exchange; |
• | an independent third-party appraiser or other third-party valuation firm, other than the third-party valuation firm engaged by our board to assist in its determination of the updated estimated per share NAV, would agree with our estimated per share NAV; or |
• | the methodology used to estimate our updated per share NAV would be acceptable to FINRA or comply with reporting requirements under the Employee Retirement Income Security Act of 1974, or ERISA, the Code, other applicable law, or the applicable provisions of a retirement plan or individual retirement account, or IRA. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased As Part of Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 1, 2019 to July 31, 2019 | — | $ | — | — | (1 | ) | |||||||
August 1, 2019 to August 31, 2019 | — | $ | — | — | (1 | ) | |||||||
September 1, 2019 to September 30, 2019 | 1,855,118 | $ | 9.45 | 1,855,118 | (1 | ) | |||||||
Total | 1,855,118 | $ | 9.45 | 1,855,118 |
(1) | A description of the maximum number of shares that may be purchased under our share repurchase plan is included in the narrative preceding this table. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed herewith. |
** | Furnished herewith. In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
Griffin-American Healthcare REIT III, Inc. (Registrant) | ||||||
November 14, 2019 | By: | /s/ JEFFREY T. HANSON | ||||
Date | Jeffrey T. Hanson | |||||
Chief Executive Officer and Chairman of the Board of Directors | ||||||
(Principal Executive Officer) | ||||||
November 14, 2019 | By: | /s/ BRIAN S. PEAY | ||||
Date | Brian S. Peay | |||||
Chief Financial Officer | ||||||
(Principal Financial Officer and Principal Accounting Officer) |
November 14, 2019 | By: | /s/ JEFFREY T. HANSON | ||
Date | Jeffrey T. Hanson | |||
Chief Executive Officer and Chairman of the Board of Directors | ||||
(Principal Executive Officer) |
November 14, 2019 | By: | /s/ BRIAN S. PEAY | ||
Date | Brian S. Peay | |||
Chief Financial Officer | ||||
(Principal Financial Officer and Principal Accounting Officer) |
November 14, 2019 | By: | /s/ JEFFREY T. HANSON | ||
Date | Jeffrey T. Hanson | |||
Chief Executive Officer and Chairman of the Board of Directors | ||||
(Principal Executive Officer) |
November 14, 2019 | By: | /s/ BRIAN S. PEAY | ||
Date | Brian S. Peay | |||
Chief Financial Officer | ||||
(Principal Financial Officer and Principal Accounting Officer) |
Real Estate Notes Receivable and Debt Security Investment, Net - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
Oct. 15, 2015 |
|
Real Estate Notes Receivable and Investment, Net | ||||||
Investment | $ 71,986,000 | $ 71,986,000 | $ 69,873,000 | |||
Impairment of real estate notes receivable and investment | 0 | $ 0 | 0 | $ 0 | ||
Amortization of Deferred Loan Origination Fees, Net | $ 37,000 | $ 64,000 | $ 237,000 | $ 185,000 | ||
Debt security investment [Member] | ||||||
Real Estate Notes Receivable and Investment, Net | ||||||
Stated Interest Rate | 4.24% | |||||
Stated amount after maturity | $ 93,433,000 | |||||
Yield to Maturity Interest Rate | 10.00% | |||||
Beneficial ownership interest in Mortgage Trust | 10.00% | 10.00% |
Identified Intangible Assets, Net - Summary of Amortization Expense on Identified Intangible Assets, Net (Detail) $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
2019 | $ 1,915 |
2020 | 6,377 |
2021 | 4,727 |
2022 | 4,014 |
2023 | 3,241 |
Thereafter | 16,080 |
Amortized intangible assets | $ 36,354 |
Related Party Transactions - Schedule of Amount Outstanding to Affiliates (Detail) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 2,147 | $ 2,103 |
Asset And Property Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 1,921 | 1,856 |
Construction Management Fee [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 163 | 58 |
Lease Commissions [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 54 | 94 |
Operating Expense [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 9 | 12 |
Acquistion Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 0 | 15 |
Development Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 0 | $ 68 |
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||
Operating lease cost | $ 7,387 | $ 22,507 |
Amortization of leased assets | 467 | 1,520 |
Accretion of lease liabilities | 146 | 278 |
Total lease cost | $ 8,000 | $ 24,305 |
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Federal deferred | $ (1,446) | $ (1,291) | $ (2,538) | $ (3,769) |
State deferred | (242) | (270) | (381) | (773) |
State current | 0 | 4 | 0 | 4 |
Foreign current | 90 | 387 | 510 | 568 |
Valuation allowances | 2,438 | 1,126 | 3,559 | 3,029 |
Total income tax expense (benefit) | $ 840 | $ (44) | $ 1,150 | $ (941) |
Equity Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance Stockholders' Equity | $ 1,138,975 | $ 1,292,381 | $ 1,218,635 | $ 1,346,575 |
Net change in current period | (281) | (136) | (301) | (374) |
Ending balance Stockholders' Equity | 1,086,500 | 1,260,469 | 1,086,500 | 1,260,469 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance Stockholders' Equity | (2,580) | (2,209) | (2,560) | (1,971) |
Ending balance Stockholders' Equity | $ (2,861) | $ (2,345) | $ (2,861) | $ (2,345) |
Segment Reporting - Summary Information for Reportable Segments (Detail) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2019
USD ($)
segment
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
segment
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 6 | 6 | ||||
Revenues: | ||||||
Resident fees and services | $ 273,800,000 | $ 251,884,000 | $ 814,554,000 | $ 744,859,000 | ||
Real estate revenue | 27,962,000 | 32,295,000 | 93,197,000 | 97,475,000 | ||
Total revenues | 301,762,000 | 284,179,000 | 907,751,000 | 842,334,000 | ||
Expenses: | ||||||
Property operating expenses | 241,858,000 | 223,665,000 | 716,700,000 | 659,295,000 | ||
Rental expenses | 9,188,000 | 8,577,000 | 25,839,000 | 26,264,000 | ||
Segment net operating income | 50,716,000 | 51,937,000 | 165,212,000 | 156,775,000 | ||
Operating Expenses | ||||||
General and administrative | 7,675,000 | 6,900,000 | 21,104,000 | 19,910,000 | ||
Acquisition related expenses | 4,000 | (1,102,000) | (292,000) | (1,657,000) | ||
Depreciation and amortization | 36,778,000 | 23,816,000 | 87,149,000 | 70,190,000 | ||
Other income (expense): | ||||||
Interest expense (including amortization of deferred financing costs, debt discount/premium and loss on debt extinguishment) | (21,046,000) | (16,538,000) | (59,665,000) | (48,369,000) | ||
Loss in fair value of derivative financial instruments | (1,169,000) | (750,000) | (5,846,000) | (1,127,000) | ||
Impairment of real estate investment | 0 | 0 | 0 | (2,542,000) | ||
Loss from unconsolidated entities | (766,000) | (1,137,000) | (1,713,000) | (3,672,000) | ||
Foreign currency loss | (1,464,000) | (619,000) | (1,654,000) | (1,652,000) | ||
Other income | 1,923,000 | 501,000 | 2,377,000 | 1,020,000 | ||
(Loss) Income before income taxes | (16,263,000) | 3,780,000 | (9,250,000) | 11,990,000 | ||
Income tax (expense) benefit | (840,000) | 44,000 | (1,150,000) | 941,000 | ||
Net (loss) income | (17,103,000) | 3,824,000 | (10,400,000) | 12,931,000 | ||
Assets by Reportable Segment | ||||||
Total assets | $ 3,091,409,000 | 3,091,409,000 | 3,091,409,000 | $ 2,889,092,000 | ||
Goodwill | 75,309,000 | 75,309,000 | 75,309,000 | 75,309,000 | ||
Segments, Geographical Areas | ||||||
Real estate investments, net | 2,249,059,000 | 2,249,059,000 | 2,249,059,000 | 2,222,681,000 | ||
United States [Member] | ||||||
Revenues: | ||||||
Total revenues | 300,609,000 | 282,977,000 | 904,152,000 | 838,603,000 | ||
Segments, Geographical Areas | ||||||
Real estate investments, net | 2,201,702,000 | 2,201,702,000 | 2,201,702,000 | 2,173,395,000 | ||
International [Member] | ||||||
Revenues: | ||||||
Total revenues | 1,153,000 | 1,202,000 | 3,599,000 | 3,731,000 | ||
Segments, Geographical Areas | ||||||
Real estate investments, net | 47,357,000 | 47,357,000 | 47,357,000 | 49,286,000 | ||
Integrated Senior Health Campuses [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 257,048,000 | 235,605,000 | 764,803,000 | 696,187,000 | ||
Real estate revenue | 0 | 0 | 0 | 0 | ||
Total revenues | 257,048,000 | 235,605,000 | 764,803,000 | 696,187,000 | ||
Expenses: | ||||||
Property operating expenses | 230,349,000 | 212,519,000 | 681,996,000 | 626,091,000 | ||
Rental expenses | 0 | 0 | 0 | 0 | ||
Segment net operating income | 26,699,000 | 23,086,000 | 82,807,000 | 70,096,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 1,714,145,000 | 1,714,145,000 | 1,714,145,000 | 1,478,147,000 | ||
Goodwill | 75,309,000 | 75,309,000 | 75,309,000 | 75,309,000 | ||
Senior Housing-RIDEA [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 16,752,000 | 16,279,000 | 49,751,000 | 48,672,000 | ||
Real estate revenue | 0 | 0 | 0 | 0 | ||
Total revenues | 16,752,000 | 16,279,000 | 49,751,000 | 48,672,000 | ||
Expenses: | ||||||
Property operating expenses | 11,509,000 | 11,146,000 | 34,704,000 | 33,204,000 | ||
Rental expenses | 0 | 0 | 0 | 0 | ||
Segment net operating income | 5,243,000 | 5,133,000 | 15,047,000 | 15,468,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 265,572,000 | 265,572,000 | 265,572,000 | 271,381,000 | ||
Medical Office Building [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 19,890,000 | 20,029,000 | 60,548,000 | 60,316,000 | ||
Total revenues | 19,890,000 | 20,029,000 | 60,548,000 | 60,316,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 8,140,000 | 7,577,000 | 23,553,000 | 23,255,000 | ||
Segment net operating income | 11,750,000 | 12,452,000 | 36,995,000 | 37,061,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 621,240,000 | 621,240,000 | 621,240,000 | 646,784,000 | ||
Senior Housing [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 2,601,000 | 5,472,000 | 14,184,000 | 16,265,000 | ||
Total revenues | 2,601,000 | 5,472,000 | 14,184,000 | 16,265,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 553,000 | 211,000 | 776,000 | 583,000 | ||
Segment net operating income | 2,048,000 | 5,261,000 | 13,408,000 | 15,682,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 242,790,000 | 242,790,000 | 242,790,000 | 242,686,000 | ||
Skilled Nursing Facilities [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 2,672,000 | 3,716,000 | 9,998,000 | 11,183,000 | ||
Total revenues | 2,672,000 | 3,716,000 | 9,998,000 | 11,183,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 346,000 | 391,000 | 1,076,000 | 1,207,000 | ||
Segment net operating income | 2,326,000 | 3,325,000 | 8,922,000 | 9,976,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 126,664,000 | 126,664,000 | 126,664,000 | 127,809,000 | ||
Hospitals [Member] | ||||||
Revenues: | ||||||
Resident fees and services | 0 | 0 | 0 | 0 | ||
Real estate revenue | 2,799,000 | 3,078,000 | 8,467,000 | 9,711,000 | ||
Total revenues | 2,799,000 | 3,078,000 | 8,467,000 | 9,711,000 | ||
Expenses: | ||||||
Property operating expenses | 0 | 0 | 0 | 0 | ||
Rental expenses | 149,000 | 398,000 | 434,000 | 1,219,000 | ||
Segment net operating income | 2,650,000 | $ 2,680,000 | 8,033,000 | $ 8,492,000 | ||
Assets by Reportable Segment | ||||||
Total assets | 115,152,000 | 115,152,000 | 115,152,000 | 118,685,000 | ||
Other Segments [Member] | ||||||
Assets by Reportable Segment | ||||||
Total assets | $ 5,846,000 | $ 5,846,000 | $ 5,846,000 | $ 3,600,000 |
Redeemable Noncontrolling Interest |
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Redeemable Noncontrolling Interest | 12. Redeemable Noncontrolling Interests On January 15, 2013, our advisor made an initial capital contribution of $2,000 to our operating partnership in exchange for 222 limited partnership units. Upon the effectiveness of the Advisory Agreement on February 26, 2014, Griffin-American Advisor became our advisor. As of September 30, 2019 and December 31, 2018, we owned greater than a 99.99% general partnership interest in our operating partnership, and our advisor owned less than a 0.01% limited partnership interest in our operating partnership. As our advisor, Griffin-American Advisor is entitled to special redemption rights of its limited partnership units. The noncontrolling interest of our advisor in our operating partnership that has redemption features outside of our control is accounted for as a redeemable noncontrolling interest and is presented outside of permanent equity in our accompanying condensed consolidated balance sheets. See Note 14, Related Party Transactions — Liquidity Stage — Subordinated Participation Interest — Subordinated Distribution Upon Listing and Note 14, Related Party Transactions — Subordinated Distribution Upon Termination, for a further discussion of the redemption features of the limited partnership units. On December 1, 2015, we, through Trilogy REIT Holdings, LLC, or Trilogy REIT Holdings, in which we indirectly hold a 70.0% ownership interest, pursuant to an equity purchase agreement with Trilogy and other seller parties thereto, completed the acquisition of approximately 96.7% of the outstanding equity interests of Trilogy. Pursuant to the equity purchase agreement, at the closing of the acquisition, certain members of Trilogy’s pre-closing management retained a portion of the outstanding equity interests of Trilogy held by such members of Trilogy’s pre-closing management, representing in the aggregate approximately 3.3% of the outstanding equity interests of Trilogy. The noncontrolling interests held by Trilogy’s pre-closing management have redemption features outside of our control and are accounted for as redeemable noncontrolling interests in our accompanying condensed consolidated balance sheets. As September 30, 2019 and December 31, 2018, Trilogy REIT Holdings and certain members of Trilogy’s pre-closing management owned approximately 96.8% and 96.7%, respectively, and 3.2% and 3.3%, respectively, of Trilogy. We record the carrying amount of redeemable noncontrolling interests at the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions or (ii) the redemption value. The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the nine months ended September 30, 2019 and 2018:
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Real Estate Notes Receivable and Debt Security Investment, Net |
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Real Estate Notes Receivable and Investment, Net | 4. Real Estate Notes Receivable and Debt Security Investment, Net The following is a summary of our notes receivable and debt security investment, including unamortized loan and closing costs, net as of September 30, 2019 and December 31, 2018:
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The following table reflects the changes in the carrying amount of our real estate notes receivable and debt security investment for the nine months ended September 30, 2019 and 2018:
For the three and nine months ended September 30, 2019 and 2018, we did not record any impairment losses on our real estate notes receivable or debt security investment. Amortization expense on loan and closing costs for the three months ended September 30, 2019 and 2018 was $37,000 and $64,000, respectively, and for the nine months ended September 30, 2019 and 2018, was $237,000 and $185,000, respectively, which was recorded against real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income (loss). |
Lines of Credit and Term Loans |
9 Months Ended |
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Sep. 30, 2019 | |
Line of Credit Facility [Abstract] | |
Lines Of Credit | 8. Lines of Credit and Term Loans 2016 Corporate Line of Credit On February 3, 2016, we, through certain of our subsidiaries, entered into a credit agreement, or the 2016 Corporate Credit Agreement, with Bank of America, N.A., or Bank of America, as administrative agent, a swing line lender and a letter of credit issuer; KeyBank, National Association, or KeyBank, as syndication agent, a swing line lender and a letter of credit issuer; and a syndicate of other banks, as lenders, to obtain a revolving line of credit with an aggregate maximum principal amount of $300,000,000, or the 2016 Corporate Revolving Credit Facility, and a term loan credit facility in the amount of $200,000,000, or the 2016 Corporate Term Loan Facility, and together with the 2016 Corporate Revolving Credit Facility, the 2016 Corporate Line of Credit. On February 3, 2016, we also entered into separate revolving notes, or the 2016 Corporate Revolving Notes, and separate term notes with each of Bank of America, KeyBank and a syndicate of other banks. The 2016 Corporate Line of Credit would have matured on February 3, 2019. On August 3, 2017, we entered into a First Amendment, Waiver and Commitment Increase Agreement, or the Amendment, with Bank of America, KeyBank, and the lenders named therein, to amend the 2016 Corporate Credit Agreement. The material terms of the Amendment included: (i) an increase in the 2016 Corporate Term Loan Facility in an amount equal to $50,000,000; (ii) a revision to the definition of Term Loan Commitment, as defined in the 2016 Corporate Credit Agreement, to reflect the increase in the 2016 Corporate Term Loan Facility and specify that the aggregate principal amount of the Term Loan Commitments of all of the Term Loan Lenders, as defined in the 2016 Corporate Credit Agreement, as in effect on the effective date of the Amendment is $250,000,000; and (iii) the addition of Bank of the West, or New Lender, as a party to the 2016 Corporate Credit Agreement and a Term Loan Lender and Lender, as defined in the 2016 Corporate Credit Agreement, and New Lender’s agreement to be bound by all terms, provisions and conditions applicable to Lenders contained in the 2016 Corporate Credit Agreement. As a result of the Amendment, our aggregate borrowing capacity under the 2016 Corporate Line of Credit was increased to $550,000,000. On December 20, 2018, we entered into a Commitment Increase Agreement with Bank of America. The material terms of the Commitment Increase Agreement provided for an increase in the 2016 Corporate Revolving Credit Facility by an aggregate amount equal to $25,000,000. On December 20, 2018, we also entered into an Amended and Restated Revolving Note with Bank of America, whereby we promised to pay the principal amount and accrued interest of each loan to the respective lender or its registered assigns, in accordance with the terms and conditions of the 2016 Corporate Credit Agreement, as amended. As a result of the Commitment Increase Agreement, our aggregate borrowing capacity under the 2016 Corporate Line Credit was increased to $575,000,000. As of December 31, 2018, our aggregate borrowing capacity under the 2016 Corporate Line of Credit was $575,000,000. As of December 31, 2018, borrowings outstanding under the 2016 Corporate Line of Credit totaled $548,500,000 and the weighted average interest rate on such borrowings outstanding was 4.60% per annum. On January 25, 2019, we terminated the 2016 Corporate Credit Agreement, as amended, and the 2016 Corporate Revolving Notes and entered into the 2019 Corporate Line of Credit as described below. We currently do not have any obligations under the 2016 Corporate Credit Agreement, as amended, or the 2016 Corporate Revolving Notes. 2019 Corporate Line of Credit On January 25, 2019, we, through our operating partnership and certain of our subsidiaries, entered into a credit agreement, or the 2019 Corporate Credit Agreement, with Bank of America as administrative agent, a swing line lender and a letter of credit issuer; KeyBank, as syndication agent, a swing line lender and a letter of credit issuer; Citizens Bank, National Association, as a syndication agent, a swing line lender, a letter of credit issuer, a joint lead arranger and joint bookrunner; and a syndicate of other banks, as lenders, to obtain a credit facility with an aggregate maximum principal amount of $630,000,000, or the 2019 Corporate Line of Credit. The 2019 Corporate Line of Credit consists of a senior unsecured revolving credit facility in the initial aggregate amount of $150,000,000 and a senior unsecured term loan facility in the initial aggregate amount of $480,000,000. We may obtain up to $25,000,000 in the form of standby letters of credit and up to $25,000,000 in the form of swing line loans. The maximum principal amount of the 2019 Corporate Line of Credit may be increased by up to $370,000,000, for a total principal amount of $1,000,000,000, subject to: (i) the terms of the 2019 Corporate Credit Agreement; and (ii) at least five business days’ prior written notice to Bank of America. At our option, the 2019 Corporate Line of Credit bears interest at per annum rates equal to (a) (i) the Eurodollar Rate, as defined in the 2019 Corporate Credit Agreement, plus (ii) a margin ranging from 1.50% to 2.20% based on our Consolidated Leverage Ratio, as defined in the 2019 Corporate Credit Agreement, or (b) (i) the greater of: (1) the prime rate publicly announced by Bank of America, (2) the Federal Funds Rate, as defined in the 2019 Corporate Credit Agreement, plus 0.50%, (3) the one-month Eurodollar Rate plus 1.00%, and (4) 0.00%, plus (ii) a margin ranging from 0.50% to 1.20% based on our Consolidated Leverage Ratio. Accrued interest on the 2019 Corporate Line of Credit is payable monthly. The loans may be repaid in whole or in part without prepayment premium or penalty, subject to certain conditions. We are required to pay a fee on the unused portion of the lenders’ commitments under the 2019 Corporate Credit Agreement at a per annum rate equal to 0.20% if the average daily used amount is greater than 50% of the commitments and 0.25% if the average daily used amount is less than or equal to 50% of the commitments, which fee shall be measured and payable on a quarterly basis. The 2019 Corporate Line of Credit matures on January 25, 2022, and may be extended for one 12-month period during the term of the 2019 Credit Agreement, subject to satisfaction of certain conditions, including payment of an extension fee. The 2019 Corporate Credit Agreement contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by our operating partnership and its subsidiaries and limitations on secured recourse indebtedness. As of September 30, 2019, our aggregate borrowing capacity under the 2019 Corporate Line of Credit was $630,000,000. As of September 30, 2019, borrowings outstanding under the 2019 Corporate Line of Credit totaled $517,500,000 and the weighted average interest rate on such borrowings outstanding was 3.91% per annum. Trilogy PropCo Line of Credit In connection with our acquisition of Trilogy, on December 1, 2015, we, through Trilogy PropCo Finance, LLC, a Delaware limited liability company and an indirect subsidiary of Trilogy, or Trilogy PropCo Parent, and certain of its subsidiaries, or the Trilogy PropCo Co-Borrowers, and, together with Trilogy PropCo Parent, the Trilogy PropCo Borrowers, entered into a loan agreement, or the Trilogy PropCo Credit Agreement, with KeyBank, as administrative agent; Regions Bank, as syndication agent; and a syndicate of other banks, as lenders, to obtain a line of credit with an aggregate maximum principal amount of $300,000,000, or the Trilogy PropCo Line of Credit. On December 1, 2015, we also entered into separate revolving notes with each of KeyBank and Regions Bank, whereby we promised to pay the principal amount of each revolving loan and accrued interest to the respective lender or its registered assigns, in accordance with the terms and conditions of the Trilogy PropCo Credit Agreement. The maturity date of the Trilogy PropCo Line of Credit would have been December 1, 2019. On October 27, 2017, we entered into an amendment to the Trilogy PropCo Credit Agreement, or the Trilogy PropCo Amendment, with KeyBank, as administrative agent, and a syndicate of other banks, as lenders, to amend the terms of the Trilogy PropCo Credit Agreement. The material terms of the Trilogy PropCo Amendment included a reduction of the total commitment under the Trilogy PropCo Line of Credit from $300,000,000 to $250,000,000. On September 5, 2019, we entered into an amendment to the Trilogy PropCo Credit Agreement, or the Trilogy First Amended and Restated Senior Secured Credit Agreement, to replace the terms of the Trilogy PropCo Line of Credit with the 2019 Trilogy Credit Facility, as further discussed below in the “2019 Trilogy Credit Facility” section. Our aggregate borrowing capacity under the Trilogy PropCo Line of Credit was $0 and $250,000,000 as of September 30, 2019 and December 31, 2018. As of September 30, 2019 and December 31, 2018, borrowings outstanding under the Trilogy PropCo Line of Credit totaled $0 and $170,518,000, respectively. As of December 31, 2018, the weighted average interest rate on such borrowing outstanding was 6.45% per annum. Trilogy OpCo Line of Credit On March 21, 2016, we, through Trilogy Healthcare Holdings, Inc., a Delaware corporation and a direct subsidiary of Trilogy, and certain of its subsidiaries, or the Trilogy OpCo Borrowers, entered into a credit agreement, or the Trilogy OpCo Credit Agreement, with Wells Fargo Bank, National Association, or Wells Fargo, N.A., as administrative agent and lender; and a syndicate of other banks, as lenders, to obtain a $42,000,000 secured revolving credit facility, or the Trilogy OpCo Line of Credit. On April 1, 2016, we entered into an amendment to the Trilogy OpCo Credit Agreement to increase the aggregate maximum principal amount of the Trilogy OpCo Line of Credit to $60,000,000. In April 2018, we further amended the Trilogy OpCo Credit Agreement, or the Trilogy OpCo Amendment. The material terms of the Trilogy OpCo Amendment provided for: (i) a reduction in the aggregate maximum principal amount from $60,000,000 to $25,000,000; and (ii) an updated maturity date of April 27, 2021. On September 5, 2019, we terminated the Trilogy OpCo Line of Credit, as amended, and replaced it with the 2019 Trilogy Credit Facility, described below. As a result, we currently do not have any obligations under the Trilogy OpCo Line of Credit. Our aggregate borrowing capacity under the Trilogy OpCo Line of Credit was $0 and $25,000,000 as of September 30, 2019 and December 31, 2018, subject to certain terms and conditions. As of September 30, 2019 and December 31, 2018, borrowings outstanding under the Trilogy OpCo Line of Credit totaled $0 and $19,030,000, respectively. As of December 31, 2018 the weighted average interest rate on such borrowings outstanding was 5.17% per annum. 2019 Trilogy Credit Facility On September 5, 2019, we, through Trilogy RER, LLC and certain subsidiaries of Trilogy OpCo, LLC, Trilogy RER, LLC, and Trilogy Pro Services, LLC, or the 2019 Trilogy Co-Borrowers, entered into a First Amended and Restated Senior Secured Credit Agreement, or the Trilogy First Amended and Restated Credit Agreement, with KeyBank, as administrative agent; CIT Bank, N.A., or CIT Bank, as revolving agent; Regions Bank, as syndication agent; KeyBanc Capital Markets, Inc., or KeyBanc Capital Markets, as co-lead arranger and co-book runner; Regions Capital Markets, as co-lead arranger and co-book runner; Bank of America, N.A., or Bank of America, as co-documentation agent; The Huntington National Bank, as co-documentation agent; and a syndicate of other banks, as lenders named therein, to amend and restate the terms of the Trilogy PropCo Credit Agreement to obtain a senior secured revolving credit facility with an aggregate maximum principal amount of $360,000,000, consisting of (i) a $325,000,000 secured revolver supported by real estate assets and ancillary business cash flow and (ii) a $35,000,000 accounts receivable revolving credit facility supported by eligible accounts receivable, or the 2019 Trilogy Credit Facility. We may obtain up to $35,000,000 in the form of swing line loans and up to $15,000,000 in the form of standby letters of credit. The proceeds of the 2019 Trilogy Credit Facility may be used for acquisitions, debt repayment and general corporate purposes. The maximum principal amount of the 2019 Trilogy Credit Facility may be increased by up to $140,000,000, for a total principal amount of $500,000,000, subject to: (i) the terms of the Trilogy First Amended and Restated Credit Agreement and (ii) at least 10 business days’ prior written notice to KeyBank. At our option, the 2019 Trilogy Credit Facility bears interest at per annum rates equal to (a) LIBOR plus 2.75% for LIBOR Rate Loans, as defined in the Trilogy First Amended and Restated Credit Agreement, and (b) for Base Rate Loans, as defined in the Trilogy First Amended and Restated Credit Agreement, 1.75% plus the greater of: (i) the fluctuating annual rate of interest announced from time to time by KeyBank as its prime rate, (ii) 0.5% above the Federal Funds Effective Rate, as defined in the Trilogy First Amended and Restated Credit Agreement, and (iii) 1.00% above the one-month LIBOR. Accrued interest on the 2019 Trilogy Credit Facility is payable monthly. The loans may be repaid in whole or in part without prepayment fees or penalty, subject to certain conditions. We are required to pay fees on the unused portion of the lenders’ commitments under the 2019 Trilogy Credit Facility, with respect to any day during a calendar quarter, at a per annum rate equal to (a) 0.15% if the sum of the Aggregate Real Estate Revolving Credit Obligations, as defined in the Trilogy First Amended and Restated Credit Agreement, outstanding on such day is greater than 50% of the commitments or 0.20% if the sum of the Aggregate Real Estate Revolving Credit Obligations on such day is less than or equal to 50% of the commitments, and (b) 0.15% if the sum of the Aggregate A/R Revolving Credit Obligations, as defined in the the Trilogy First Amended and Restated Credit Agreement, outstanding on such day is greater than 50% of the commitments or 0.20% if the sum of the Aggregate A/R Revolving Credit Obligations on such day is less than or equal to 50% of the commitments, which fees shall be measured and payable on a quarterly basis. The 2019 Trilogy Credit Facility matures on September 5, 2023 and may be extended for one 12-month period during the term of the Trilogy First Amended and Restated Credit Agreement subject to the satisfaction of certain conditions, including payment of an extension fee. As of September 30, 2019, our aggregate borrowing capacity under the 2019 Trilogy Credit Facility was $360,000,000. As of September 30, 2019, borrowings outstanding under the 2019 Trilogy Credit Facility totaled $237,779,000 and the weighted average interest rate on such borrowings outstanding was 4.81% per annum. |
Identified Intangible Liabilities, Net (Tables) |
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Summary of Amortization Expense on Below Market Leases | As of September 30, 2019, estimated amortization expense on below-market leases for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter was as follows:
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Identified intangible assets, net | Identified intangible assets, net consisted of the following as of September 30, 2019 and December 31, 2018:
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Amortization expense on identified intangible assets | As of September 30, 2019, estimated amortization expense on the identified intangible assets for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter was as follows:
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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands |
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Statement of Stockholders' Equity [Abstract] | ||||
Distribution per share (in usd per share) | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Net income attributable to redeemable noncontrolling interests | $ 17 | $ 24 | $ 304 | $ 131 |
Income Taxes |
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Income Taxes | 16. Income Taxes As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. We have elected to treat certain of our consolidated subsidiaries as taxable REIT subsidiaries, or TRS, pursuant to the Code. TRS may participate in services that would otherwise be considered impermissible for REITs and are subject to federal and state income tax at regular corporate tax rates. On December 22, 2017, the U.S. government enacted comprehensive tax legislation pursuant to the Tax Cuts and Jobs Act of 2017, or the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate tax rate from 35.0% to 21.0%, eliminating the corporate alternative minimum tax and changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The Tax Act is still unclear in some respects and could be subject to potential amendments and technical corrections. The federal income tax rules dealing with U.S. federal income taxation and REITs are constantly under review by persons involved in the legislative process, the IRS and the U.S. Treasury Department, which results in statutory changes as well as frequent revisions to regulations and interpretations. As a result, the long-term impact of the Tax Act on the overall economy, government revenues, our tenants, us, and the real estate industry cannot be reliably predicted at this time. We continue to work with our tax advisors to determine the full impact that the recent tax legislation as a whole will have on us. The components of (loss) income before taxes for the three and nine months ended September 30, 2019 and 2018 were as follows:
The components of income tax expense (benefit) for the three and nine months ended September 30, 2019 and 2018 were as follows:
Current Income Tax Federal and state income taxes are generally a function of the level of income recognized by our TRS. Foreign income taxes are generally a function of our income on our real estate and real estate-related investments located in the United Kingdom, or UK, and Isle of Man. Deferred Taxes Deferred income tax is generally a function of the period’s temporary differences (primarily basis differences between tax and financial reporting for real estate assets and equity investments) and generation of tax net operating losses that may be realized in future periods depending on sufficient taxable income. We recognize the financial statement effects of an uncertain tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on our estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. As of September 30, 2019 and December 31, 2018, we did not have any tax benefits or liabilities for uncertain tax positions that we believe should be recognized in our accompanying condensed consolidated financial statements. We assess the available evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A valuation allowance is established if we believe it is more likely than not that all or a portion of the deferred tax assets are not realizable. As of September 30, 2019 and December 31, 2018, our valuation allowance substantially reserves the net deferred tax assets due to inherent uncertainty of future income. We will continue to monitor industry and economic conditions, and our ability to generate taxable income based on our business plan and available tax planning strategies, which would allow us to utilize the tax benefits of the net deferred tax assets and thereby allow us to reverse all, or a portion of, our valuation allowance in the future. |
Per Share Data |
9 Months Ended |
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Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Per Share Data | 20. Per Share Data Basic earnings (loss) per share for all periods presented are computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of our common stock outstanding during the period. Net income (loss) applicable to common stock is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of $7,000 for both the three months ended September 30, 2019 and 2018, and $21,000 and $20,000, respectively, for the nine months ended September 30, 2019 and 2018. Diluted earnings (loss) per share are computed based on the weighted average number of shares of our common stock and all potentially dilutive securities, if any. Nonvested shares of our restricted common stock and redeemable limited partnership units of our operating partnership are participating securities and give rise to potentially dilutive shares of our common stock. As of September 30, 2019 and 2018, there were 46,500 and 47,500 nonvested shares, respectively, of our restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during these periods. As of both September 30, 2019 and 2018, there were 222 units of redeemable limited partnership units of our operating partnership outstanding, but such units were also excluded from the computation of diluted earnings per share because such units were anti-dilutive during these periods. |
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
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ASSETS | |||||
Real estate investments, net | $ 2,249,059 | $ 2,222,681 | |||
Real estate notes receivable and debt security investment, net | 71,986 | 98,655 | |||
Cash and cash equivalents | 46,709 | 35,132 | |||
Accounts and other receivables, net | 128,879 | 122,918 | |||
Restricted cash | 37,464 | 37,573 | |||
Real estate deposits | 281 | 3,077 | |||
Identified intangible assets, net | 161,073 | 179,521 | |||
Goodwill | 75,309 | 75,309 | |||
Operating lease right-of-use assets | 187,900 | 0 | |||
Other assets, net | 132,749 | 114,226 | |||
Total assets | 3,091,409 | 2,889,092 | |||
Liabilities: | |||||
Mortgage loans payable, net | [1] | 805,257 | 688,262 | ||
Lines of credit and term loans | [1] | 755,279 | 738,048 | ||
Accounts payable and accrued liabilities | [1] | 150,502 | 139,383 | ||
Accounts payable due to affiliates | [1] | 2,147 | 2,103 | ||
Identified intangible liabilities, net | 751 | 1,051 | |||
Financing obligations | [1] | 29,137 | 25,947 | ||
Operating lease liabilities | [1] | 178,172 | 0 | ||
Security deposits, prepaid rent and other liabilities | [1] | 45,853 | 37,418 | ||
Total liabilities | 1,967,098 | 1,632,212 | |||
Commitments and contingencies (Note 11) | |||||
Redeemable noncontrolling interests (Note 12) | 37,811 | 38,245 | |||
Stockholders’ equity: | |||||
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding | 0 | 0 | |||
Common stock, $0.01 par value per share; 1,000,000,000 shares authorized; 194,389,974 and 197,557,377 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 1,943 | 1,975 | |||
Additional paid-in capital | 1,735,527 | 1,765,840 | |||
Accumulated deficit | (806,427) | (704,748) | |||
Accumulated other comprehensive loss | (2,861) | (2,560) | |||
Total stockholders’ equity | 928,182 | 1,060,507 | |||
Noncontrolling interests (Note 13) | 158,318 | 158,128 | |||
Total equity | 1,086,500 | 1,218,635 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ 3,091,409 | $ 2,889,092 | |||
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Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease liabilities | [1] | $ 178,172 | $ 0 | ||
Operating lease right-of-use assets | $ 187,900 | $ 0 | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease liabilities | $ 198,453 | ||||
Operating lease right-of-use assets | $ 211,679 | ||||
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Payments to be Received | The following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for leases in effect for properties we wholly own for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter:
Future minimum base rent contractually due under operating leases, excluding tenant reimbursements of certain costs, as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
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Schedule of Lease Cost | The components of lease costs were as follows:
Other information related to leases was as follows:
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Schedule of Operating Lease Liability | The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities:
Future minimum lease obligations under non-cancelable ground and other lease obligations as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
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Schedule of Finance Lease Liability | The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities:
Future minimum lease payments under finance leases as of December 31, 2018 and for each of the next five years ending December 31 and thereafter was as follows:
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Mortgage Loans Payable, Net - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | ||||||||
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Sep. 30, 2019
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Dec. 31, 2018
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Dec. 31, 2017
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SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||
Mortgage loans payable, gross | $ 829,456,000 | $ 829,456,000 | $ 713,030,000 | |||||||
Mortgage loans payable, net | $ 805,257,000 | [1] | $ 805,257,000 | [1] | $ 688,262,000 | [1] | $ 686,954,000 | $ 613,558,000 | ||
Number of fixed rate mortgage loans payable | MortgageLoan | 62 | 62 | 57 | |||||||
Number Of Variable Rate Mortgage Loans Payable | MortgageLoan | 7 | 7 | 6 | |||||||
Extinguishment of debt | $ 2,179,000 | $ 2,179,000 | ||||||||
Mortgage Loans Payable, Net | ||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||
Debt, weighted average interest rate | 3.92% | 3.92% | 3.98% | |||||||
Minimum [Member] | ||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.45% | 2.45% | 2.45% | |||||||
Maximum [Member] | ||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.60% | 6.60% | 8.46% | |||||||
Revolving Credit Facility [Member] | Trilogy Propco Line Of Credit [Member] | ||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||
Debt, weighted average interest rate | 6.45% | |||||||||
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Derivative Financial Instruments - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2019
USD ($)
instrument
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USD ($)
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Dec. 31, 2018
instrument
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Derivative [Line Items] | |||||
Loss in fair value of derivative financial instruments | $ | $ (1,169) | $ (750) | $ (5,846) | $ (1,127) | |
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Number of derivative financial instruments (in instruments) | instrument | 0 | 0 | 0 |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 15. Fair Value Measurements Assets and Liabilities Reported at Fair Value The table below presents our assets and liabilities measured at fair value on a recurring basis as of September 30, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall:
The table below presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:
There were no transfers into and out of fair value measurement levels during the nine months ended September 30, 2019 and 2018. Derivative Financial Instruments We use interest rate swaps and interest rate caps to manage interest rate risk associated with variable-rate debt. The valuation of these instruments is determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, as well as option volatility. The fair values of interest rate swaps are determined by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates derived from observable market interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although we have determined that the majority of the inputs used to value our derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparty. However, as of September 30, 2019, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Contingent Consideration Liability As of September 30, 2019 and December 31, 2018, we have accrued $0 and $681,000, respectively, of a contingent consideration obligation in connection with our Clemmons facility within North Carolina ALF Portfolio. Such obligation was included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets and would have been paid upon various conditions being met, including our tenants achieving certain operating performance metrics. In particular, the amounts may have been paid based upon the computation in the lease agreement, as amended, and receipt of notification within four years after the applicable acquisition date that the tenant has increased its earnings before interest, taxes, depreciation and rent cost, or EBITDAR, as defined in the lease agreement, for the preceding three months. There was no minimum required payment but the total maximum was capped at $11,000,000 and also limited by the tenant’s ability to increase its EBITDAR. Any payment made would have resulted in an increase in the monthly rent charged to the tenant and additional rental revenue to us. The contingent consideration obligation was not exercised and expired June 28, 2019, and as such, no contingent consideration amounts were due for the Clemmons facility within North Carolina ALF Portfolio as of September 30, 2019. Warrants As of September 30, 2019 and December 31, 2018, we have recorded $1,132,000 and $1,207,000, respectively, related to warrants in Trilogy common units held by certain members of Trilogy’s pre-closing management, which is included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets. Once exercised, these warrants have redemption features similar to the common units held by members of Trilogy’s pre-closing management. See Note 12, Redeemable Noncontrolling Interests, for a further discussion. As of September 30, 2019 and December 31, 2018, the carrying value is a reasonable estimate of fair value. Real Estate Investment No impairment charges were recognized for the three and nine months ended September 30, 2019. No impairment charges were recognized for the three months ended September 30, 2018. For the nine months ended September 30, 2018, we determined that one of our medical office buildings was impaired based upon discounted cash flow analyses where the most significant inputs were market rent, capitalization rate and discount rate. We considered these inputs as Level 3 measurements within the fair value hierarchy. The following table is a summary of the quantitative information related to the non-recurring fair value measurement for the impairment of our real estate investment as of September 30, 2018:
Financial Instruments Disclosed at Fair Value Our accompanying condensed consolidated balance sheets include the following financial instruments: real estate notes receivable, debt security investment, cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits, accounts payable and accrued liabilities, accounts payable due to affiliates, mortgage loans payable and borrowings under our lines of credit and term loans. We consider the carrying values of real estate notes receivable, cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits and accounts payable and accrued liabilities to approximate the fair value for these financial instruments based upon an evaluation of the underlying characteristics, market data and because of the short period of time between origination of the instruments and their expected realization. The fair value of cash and cash equivalents is classified in Level 1 of the fair value hierarchy. The fair value of accounts payable due to affiliates is not determinable due to the related party nature of the accounts payable. The fair values of the other financial instruments are classified in Level 2 of the fair value hierarchy. The fair value of our debt security investment is estimated using a discounted cash flow analysis using interest rates available to us for investments with similar terms and maturities. The fair value of our mortgage loans payable and our lines of credit and term loans are estimated using a discounted cash flow analysis using borrowing rates available to us for debt instruments with similar terms and maturities. We have determined that the valuations of our debt security investment, mortgage loans payable and lines of credit and term loans are classified in Level 2 within the fair value hierarchy. The carrying amounts and estimated fair values of such financial instruments as of September 30, 2019 and December 31, 2018 were as follows:
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Concentration of Credit Risk |
9 Months Ended |
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Sep. 30, 2019 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk | 19. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk are primarily debt security investment, cash and cash equivalents, accounts and other receivables, restricted cash and real estate deposits. We are exposed to credit risk with respect to the debt security investment, but we believe collection of the outstanding amount is probable. Cash and cash equivalents are generally invested in investment-grade, short-term instruments with a maturity of three months or less when purchased. We have cash and cash equivalents in financial institutions that are insured by the Federal Deposit Insurance Corporation, or FDIC. As of September 30, 2019 and December 31, 2018, we had cash and cash equivalents in excess of FDIC insured limits. We believe this risk is not significant. Concentration of credit risk with respect to accounts receivable from tenants is limited. We perform credit evaluations of prospective tenants and security deposits are obtained at the time of property acquisition and upon lease execution. Based on leases in effect as of September 30, 2019, properties in two states in the United States accounted for 10.0% or more of our total property portfolio’s annualized base rent or annualized net operating income. Properties located in Indiana and Ohio accounted for 35.1% and 10.7%, respectively, of our total property portfolio’s annualized base rent or annualized net operating income. Accordingly, there is a geographic concentration of risk subject to fluctuations in each such state’s economy. Based on leases in effect as of September 30, 2019, our six reportable business segments, integrated senior health campuses, medical office buildings, senior housing — RIDEA, senior housing, skilled nursing facilities and hospitals accounted for 49.1%, 26.4%, 8.7%, 6.7%, 5.4% and 3.7%, respectively, of our total property portfolio’s annualized base rent or annualized net operating income. As of September 30, 2019, none of our tenants at our properties accounted for 10.0% or more of our total property portfolio’s annualized base rent or annualized net operating income, which is based on contractual base rent from leases in effect inclusive of our senior housing — RIDEA facilities and integrated senior health campuses operations as of September 30, 2019. |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
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Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares, issued | 194,389,974 | 197,557,377 | ||
Common stock, shares outstanding | 194,389,974 | 197,557,377 | ||
Lines of credit and term loans | [1] | $ 755,279 | $ 738,048 | |
2019 Corporate Line of Credit [Member] | Line of Credit [Member] | ||||
Lines of credit and term loans | $ 517,500 | |||
2016 Corporate Line Of Credit [Member] | Line of Credit [Member] | ||||
Lines of credit and term loans | $ 548,500 | |||
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Segment Reporting (Tables) |
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information by Reportable Segment | Summary information for the reportable segments during the three and nine months ended September 30, 2019 and 2018 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets by Reportable Segment | Total assets by reportable segment as of September 30, 2019 and December 31, 2018 were as follows:
|
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Revenue and Real Estate Investments by Geographical Areas | The following is a summary of geographic information for our operations for the periods presented:
The following is a summary of real estate investments, net by geographic regions as of September 30, 2019 and December 31, 2018:
|
Other Assets, Net - Unconsolidated Entity Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Balance Sheet Data: | |||||
Total assets | $ 298,254 | $ 298,254 | $ 48,391 | ||
Total liabilities | 270,887 | 270,887 | 25,263 | ||
Statement of Operations Data: | |||||
Revenues | 38,623 | $ 32,346 | 110,129 | $ 96,516 | |
Expenses | 40,267 | 34,622 | 113,718 | 103,861 | |
Net loss | (1,644) | (2,276) | (3,589) | (7,345) | |
Unconsolidated Entity | |||||
Balance Sheet Data: | |||||
Total assets | 280,791 | 280,791 | 48,291 | ||
Total liabilities | 253,541 | 253,541 | 25,263 | ||
Statement of Operations Data: | |||||
Revenues | 35,669 | 32,346 | 106,099 | 96,516 | |
Expenses | 36,630 | 34,622 | 108,604 | 103,861 | |
Net loss | (961) | (2,276) | (2,505) | (7,345) | |
Other Subsidiary, Unconsolidated [Member] | |||||
Balance Sheet Data: | |||||
Total assets | 17,463 | 17,463 | 100 | ||
Total liabilities | 17,346 | 17,346 | $ 0 | ||
Statement of Operations Data: | |||||
Revenues | 2,954 | 0 | 4,030 | 0 | |
Expenses | 3,637 | 0 | 5,114 | 0 | |
Net loss | $ (683) | $ 0 | $ (1,084) | $ 0 |
Per Share Data (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Participating securities, distributed and undistributed earnings (loss), basic | $ 7 | $ 7 | $ 21 | $ 20 |
Restricted Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 46,500 | 47,500 | ||
Redeemable Limited Partnership Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 222 | 222 |
Identified Intangible Liabilities, Net - Summary of Amortization Expense on Below Market Leases (Detail) $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Intangible Liabilities [Abstract] | |
2019 | $ 88 |
2020 | 260 |
2021 | 143 |
2022 | 93 |
2023 | 78 |
Thereafter | 89 |
Finite Lived Intangible Liabilities Net | $ 751 |
Real Estate Investments, Net - Assets and Liabilities Acquired (Details) - 2019 Acquisitions $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Real Estate Properties [Line Items] | |
Building and improvements | $ 23,191 |
Land | 6,565 |
In-place leases | 3,596 |
Total assets acquired | $ 33,352 |
Identified Intangible Assets, Net - Summary of Identified Intangibles, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 11,566 | $ 3,227 | $ 18,005 | $ 9,204 | |
In-Place Leases [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 21,769 | 21,769 | $ 23,497 | ||
Leasehold Interests [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 | 548 | ||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 299 | 299 | 187 | ||
Above Market Leases [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 2,180 | 2,180 | 2,851 | ||
Internally Developed Technology and Software [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 188 | 188 | $ 117 | ||
Leasehold Interests [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | 0 | 34 | 0 | 105 | |
Above Market Leases [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 131 | $ 210 | $ 475 | $ 766 |
Concentration of Credit Risk - Additional Information (Detail) |
9 Months Ended | |
---|---|---|
Sep. 30, 2019
segment
State
|
Sep. 30, 2019
segment
State
|
|
Concentration of Credit Risk | ||
Number of states accounted for ten percent | State | 2 | 2 |
Minimum percent share of each state annualized base rent that company owned | 10.00% | 10.00% |
Number of reportable segments | segment | 6 | 6 |
Minimum percent share of annualized base rent accounted by tenants | 10.00% | 10.00% |
Integrated Senior Health Campuses [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 49.10% | 49.10% |
Medical Office Building [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 26.40% | 26.40% |
Senior Housing-RIDEA [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 8.70% | 8.70% |
Senior Housing [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 6.70% | 6.70% |
Skilled Nursing Facilities [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 5.40% | 5.40% |
Hospitals [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 3.70% | 3.70% |
Indiana [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 35.10% | 35.10% |
OHIO [Member] | ||
Concentration of Credit Risk | ||
Percentage of annual base rent | 10.70% | 10.70% |
Income Taxes -Income (loss) before income tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Domestic | $ (16,211) | $ 3,926 | $ (8,896) | $ 12,248 |
Foreign | (52) | (146) | (354) | (258) |
(Loss) Income before income taxes | $ (16,263) | $ 3,780 | $ (9,250) | $ 11,990 |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Liabilities: | ||
Contingent consideration obligations | $ 0 | $ 681 |
Fair Value, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 1 | 417 |
Total assets at fair value | 1 | 417 |
Liabilities: | ||
Fair Value, Concentration of Risk, Derivative Instruments, Liabilities | 5,276 | |
Contingent consideration obligations | 681 | |
Warrants | 1,132 | 1,207 |
Total liabilities at fair value | 6,408 | 1,888 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) [Member] | Fair Value, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Fair Value, Concentration of Risk, Derivative Instruments, Liabilities | 0 | |
Contingent consideration obligations | 0 | |
Warrants | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 1 | 417 |
Total assets at fair value | 1 | 417 |
Liabilities: | ||
Fair Value, Concentration of Risk, Derivative Instruments, Liabilities | 5,276 | |
Contingent consideration obligations | 0 | |
Warrants | 0 | 0 |
Total liabilities at fair value | 5,276 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Fair Value, Concentration of Risk, Derivative Instruments, Liabilities | 0 | |
Contingent consideration obligations | 681 | |
Warrants | 1,132 | 1,207 |
Total liabilities at fair value | $ 1,132 | $ 1,888 |
Leases - Lease Term and Discount Rate (Details) |
Sep. 30, 2019 |
---|---|
Leases [Abstract] | |
Operating leases, weighted-average remaining lease term | 13 years 4 months 24 days |
Finance leases, weighted-average remaining lease term | 1 year 3 months 18 days |
Operating leases, weighted-average discount rate | 6.13% |
Finance leases, weighted-average discount rate | 7.35% |
Leases - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Lessee, Lease, Description [Line Items] | |||
Operating lease revenue | $ 26,668 | $ 88,619 | |
Variable lease payments | 4,649 | 13,739 | |
Principal obligations | $ 4,438 | ||
Interest obligations | $ 265 | ||
Lease not yet commenced | $ 56,945 | $ 56,945 | |
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease not yet commenced, term of contract | 15 years | 15 years |
Equity (Detail) |
3 Months Ended | 6 Months Ended | 9 Months Ended | 14 Months Ended | 37 Months Ended | 47 Months Ended | 58 Months Ended | 67 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2018 |
Dec. 01, 2015 |
Feb. 26, 2014
USD ($)
|
Sep. 30, 2019
USD ($)
Anniversary
$ / shares
shares
|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Sep. 30, 2019
USD ($)
Anniversary
$ / shares
shares
|
Sep. 30, 2019
USD ($)
Anniversary
$ / shares
Rate
shares
|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Apr. 21, 2015
shares
|
Dec. 31, 2018
USD ($)
$ / shares
shares
|
Mar. 29, 2019
USD ($)
shares
|
Dec. 31, 2018
USD ($)
$ / shares
shares
|
Sep. 30, 2019
USD ($)
Anniversary
$ / shares
shares
|
Oct. 03, 2019
$ / shares
|
Jun. 30, 2019
USD ($)
shares
|
Jan. 30, 2019
USD ($)
|
Oct. 03, 2018
$ / shares
|
Jun. 30, 2018
USD ($)
shares
|
Dec. 31, 2017
USD ($)
shares
|
Oct. 04, 2017
$ / shares
|
Oct. 05, 2016
$ / shares
|
Jan. 06, 2016
USD ($)
|
Mar. 25, 2015
USD ($)
|
Jan. 15, 2013
USD ($)
shares
|
|
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,086,500,000 | $ 1,260,469,000 | $ 1,086,500,000 | $ 1,086,500,000 | $ 1,260,469,000 | $ 1,218,635,000 | $ 1,218,635,000 | $ 1,086,500,000 | $ 1,138,975,000 | $ 1,292,381,000 | $ 1,346,575,000 | |||||||||||||
Share repurchase plan percentage of price per-share condition two | 100.00% | 95.00% | 95.00% | 95.00% | 95.00% | |||||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 26,820,010 | 31,313,084 | ||||||||||||||||||||||
Granted (in shares) | shares | 127,500 | |||||||||||||||||||||||
Maximum percentage of common stock repurchased during period | 5.00% | |||||||||||||||||||||||
Cap percentage on repurchases | 5.00% | |||||||||||||||||||||||
Maximum Number of Repurchase Shares Owned, Value | $ 2,500 | |||||||||||||||||||||||
Common Stock Repurchase Requests During Period Under Share Repurchase Plan Shares | shares | 3,260,198 | 1,994,354 | 12,395,976 | 5,764,926 | ||||||||||||||||||||
Common stock repuchased during period under share repurchase plan, shares | shares | 1,832,625 | 1,994,354 | 7,682,977 | 5,764,926 | 14,320,453 | 22,003,430 | ||||||||||||||||||
Stock repuchased during period value under the share repurchase plan, value | $ 17,321,000 | $ 18,399,000 | $ 72,456,000 | $ 53,099,000 | $ 131,935,000 | $ 204,391,000 | ||||||||||||||||||
Stock acquired average cost per share | $ / shares | $ 9.45 | $ 9.23 | $ 9.43 | $ 9.21 | $ 9.21 | $ 9.29 | ||||||||||||||||||
Cumulative common stock repurchase requests (in shares) | shares | 26,716,429 | 26,716,429 | 26,716,429 | 14,320,453 | 14,320,453 | 26,716,429 | ||||||||||||||||||
Number of shares of preferred stock, authorized to be issued | shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||||||||
Par value of preferred stock, authorized to be issued | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Par value of common stock to be offered and sold to the public | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Issuance of common stock under the DRIP | $ 13,789,000 | $ 14,995,000 | $ 42,100,000 | $ 45,444,000 | $ 249,711,000 | $ 291,811,000 | ||||||||||||||||||
Number of shares of common stock, authorized to be issued | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ 1,900,000,000 | |||||||||||||||||||||||
Common stock, shares outstanding | shares | 194,389,974 | 194,389,974 | 194,389,974 | 197,557,377 | 197,557,377 | 194,389,974 | ||||||||||||||||||
Share repurchase plan holding period | 1 year | 1 year | ||||||||||||||||||||||
Share Repurchase Plan Percentage of Price per-Share Condition One | 92.50% | 92.50% | 92.50% | 92.50% | 92.50% | |||||||||||||||||||
Stock based compensation | $ 172,000 | 171,000 | ||||||||||||||||||||||
Preferred Stock, Value, Subscriptions | $ 125,000 | |||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | Rate | 12.50% | |||||||||||||||||||||||
Common stock, shares, issued | shares | 194,389,974 | 194,389,974 | 194,389,974 | 197,557,377 | 197,557,377 | 194,389,974 | ||||||||||||||||||
Share Repurchase Plan Percentage of Price per-Share Condition Three | 97.50% | 97.50% | 97.50% | 97.50% | ||||||||||||||||||||
Share Repurchase Plan Percentage of Price per-Share Condition Four | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
Preferred stock, shares issued (in shares) | shares | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||
Stock based compensation | $ 72,000 | $ 72,000 | $ 172,000 | $ 171,000 | ||||||||||||||||||||
2019 DRIP Offering [Member] | ||||||||||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 1,471,581 | 2,977,976 | ||||||||||||||||||||||
Issuance of common stock under the DRIP | $ 13,789,000 | $ 27,904,000 | ||||||||||||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ 200,000,000 | |||||||||||||||||||||||
2015 DRIP Offering and 2019 DRIP Offering [Member] | ||||||||||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 4,493,074 | |||||||||||||||||||||||
Issuance of common stock under the DRIP | $ 42,100,000 | |||||||||||||||||||||||
DRIP [Member] | ||||||||||||||||||||||||
Subscriptions in offering of common stock received and accepted shares | shares | 1,948,563 | |||||||||||||||||||||||
Percentage of offering price | 95.00% | |||||||||||||||||||||||
Maximum amount of common stock issuable under public offering | $ 35,000,000 | |||||||||||||||||||||||
Share price | $ / shares | $ 9.37 | $ 9.27 | $ 9.01 | |||||||||||||||||||||
DRIP S-3 Public Offering [Member] | ||||||||||||||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ 200,000,000 | |||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Subscriptions in offering of common stock received and accepted shares | shares | 184,930,598 | |||||||||||||||||||||||
2015 DRIP Offering [Member] | ||||||||||||||||||||||||
Issuance of common stock under the DRIP, shares | shares | 1,617,584 | 4,902,237 | 26,386,545 | |||||||||||||||||||||
Issuance of common stock under the DRIP | $ 14,995,000 | $ 45,444,000 | $ 245,396,000 | |||||||||||||||||||||
Maximum dollar amount of common stock issuable under public offering | $ 250,000,000 | |||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (2,861,000) | (2,345,000) | (2,861,000) | (2,861,000) | (2,345,000) | $ (2,560,000) | $ (2,560,000) | $ (2,861,000) | (2,580,000) | (2,209,000) | (1,971,000) | |||||||||||||
Total Stockholders' Equity | ||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 928,182,000 | 1,101,558,000 | 928,182,000 | 928,182,000 | 1,101,558,000 | 1,060,507,000 | 1,060,507,000 | 928,182,000 | 978,965,000 | 1,131,742,000 | 1,187,850,000 | |||||||||||||
Issuance of common stock under the DRIP | 13,789,000 | 14,995,000 | 42,100,000 | 45,444,000 | ||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,943,000 | $ 1,985,000 | $ 1,943,000 | $ 1,943,000 | $ 1,985,000 | $ 1,975,000 | $ 1,975,000 | $ 1,943,000 | $ 1,946,000 | $ 1,988,000 | $ 1,993,000 | |||||||||||||
Issuance of common stock under the DRIP, shares | shares | 1,471,581 | 1,617,584 | 4,493,074 | 4,902,237 | ||||||||||||||||||||
Issuance of common stock under the DRIP | $ 15,000 | $ 16,000 | $ 45,000 | $ 49,000 | ||||||||||||||||||||
Shares, Issued | shares | 194,389,974 | 198,503,045 | 194,389,974 | 194,389,974 | 198,503,045 | 197,557,377 | 197,557,377 | 194,389,974 | 194,736,018 | 198,864,815 | 199,343,234 | |||||||||||||
Trilogy Investors, LLC [Member] | ||||||||||||||||||||||||
Ownership percentage equity interest | 96.70% | 96.80% | 96.80% | 96.80% | 96.70% | 96.70% | 96.80% | |||||||||||||||||
Trilogy Joint Venture [Member] | ||||||||||||||||||||||||
Net earning of joint venture allocated to noncontrolling interest | 30.00% | 30.00% | ||||||||||||||||||||||
Joint venture ownership interest | 70.00% | 70.00% | 70.00% | 70.00% | ||||||||||||||||||||
Lakeview IN Medical Plaza [Member] | ||||||||||||||||||||||||
Joint venture ownership interest | 86.00% | 86.00% | 86.00% | 86.00% | 86.00% | 86.00% | ||||||||||||||||||
Joint venture earnings percentage allocation | 14.00% | 14.00% | 14.00% | 14.00% | 14.00% | 14.00% | ||||||||||||||||||
Trilogy Joint Venture [Member] | Profits Interests [Member] | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||||||||||||||||
Stock based compensation | $ 195,000 | $ 195,000 | $ 585,000 | $ 585,000 | ||||||||||||||||||||
Griffin American Advisor [Member] | ||||||||||||||||||||||||
Stock purchased | shares | 22,222 | |||||||||||||||||||||||
Value of stock purchased | $ 200,000 | |||||||||||||||||||||||
Griffin-American Healthcare REIT IV, Inc. [Member] | Trilogy Joint Venture [Member] | ||||||||||||||||||||||||
Ownership percentage equity interest | 6.00% | |||||||||||||||||||||||
Ownership interest acquired | 6.00% | |||||||||||||||||||||||
NorthStar Healthcare Income, Inc. [Member] | Trilogy Joint Venture [Member] | ||||||||||||||||||||||||
Ownership percentage equity interest | 24.00% | 30.00% | 30.00% | |||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||
Share repurchase plan percentage of price per-share condition two | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
Independent Director [Member] | Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||
Granted (in shares) | shares | 15,000 | 22,500 | ||||||||||||||||||||||
Granted (usd per share) | $ / shares | $ 9.37 | $ 9.37 | $ 9.37 | $ 9.37 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Number Of Vesting Anniversaries | Anniversary | 4 | 4 | 4 | 4 | ||||||||||||||||||||
Re-elected or Newly Elected Independent Directors [Member] | Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vesting Percentage | 20.00% | 20.00% | 20.00% | 20.00% | ||||||||||||||||||||
Subsequent Event [Member] | DRIP [Member] | ||||||||||||||||||||||||
Share price | $ / shares | $ 9.40 |
Real Estate Investments, Net |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments, Net | 3. Real Estate Investments, Net Our real estate investments, net consisted of the following as of September 30, 2019 and December 31, 2018:
Depreciation expense for the three months ended September 30, 2019 and 2018 was $25,062,000 and $20,636,000, respectively. Depreciation expense for the nine months ended September 30, 2019 and 2018 was $68,796,000 and $61,323,000, respectively. No impairment charges were recognized for the three and nine months ended September 30, 2019. No impairment charges were recognized for the three months ended September 30, 2018. For the nine months ended September 30, 2018, we determined that one of our medical office buildings was impaired and recognized an impairment charge of $2,542,000, which reduced the total carrying value of such investment to $7,387,000. The fair value of such medical office building was based upon a discounted cash flow analysis where the most significant inputs were considered Level 3 measurements within the fair value hierarchy. See Note 15, Fair Value Measurements — Assets and Liabilities Reported at Fair Value — Real Estate Investment, for a further discussion. For the three months ended September 30, 2019, we incurred capital expenditures of $24,714,000 for our integrated senior health campuses, $3,999,000 for our medical office buildings, $498,000 for our senior housing — RIDEA facilities and $1,254,000 for our skilled nursing facilities. We did not incur any capital expenditures for our senior housing facilities and hospitals for the three months ended September 30, 2019. For the nine months ended September 30, 2019, we incurred capital expenditures of $61,448,000 for our integrated senior health campuses, $10,717,000 for our medical office buildings, $1,276,000 for our senior housing — RIDEA facilities, $1,414,000 for our skilled nursing facilities and $50,000 for our hospitals. We did not incur any capital expenditures for our senior housing facilities for the nine months ended September 30, 2019. For the nine months ended September 30, 2019, we completed the development of one integrated senior health campus for $10,558,000, which is included in real estate investments, net, in our accompanying condensed consolidated balance sheets. Acquisitions of Real Estate Investments 2019 Acquisitions of Real Estate Investments For the nine months ended September 30, 2019, using cash on hand and debt financing, we completed the acquisition of one building from an unaffiliated third party, which we added to our existing North Carolina ALF Portfolio. The other six buildings in North Carolina ALF Portfolio were acquired between January 2015 and August 2018. The following is a summary of our property acquisition for the nine months ended September 30, 2019:
___________
2019 Acquisition of Previously Leased Real Estate Investments For the nine months ended September 30, 2019, we, through a majority-owned subsidiary of Trilogy Investors, LLC, or Trilogy, of which we own 67.7%, acquired one previously leased real estate investment located in Indiana. The following is a summary of such acquisition for the nine months ended September 30, 2019, which is included in our integrated senior health campuses segment:
___________
For the nine months ended September 30, 2019, we accounted for our property acquisitions, including our acquisition of previously leased real estate investments, as asset acquisitions. We incurred and capitalized closing costs and direct acquisition related expenses of $761,000 for such acquisitions. In addition to the property acquisitions discussed above, for the nine months ended September 30, 2019, we, through a majority-owned subsidiary of Trilogy, acquired land in Michigan and Ohio for an aggregate contract purchase price of $3,056,000 plus closing costs and paid to our advisor an acquisition fee of 2.25% of the portion of the contract purchase price of each land parcel attributed to our ownership interest. The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our acquisitions in 2019 based on their relative fair values:
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Mortgage Loans Payable, Net |
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SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Payable, Net | 7. Mortgage Loans Payable, Net Mortgage loans payable were $829,456,000 ($805,257,000, including discount/premium and deferred financing costs, net) and $713,030,000 ($688,262,000, including discount/premium and deferred financing costs, net) as of September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019, we had 62 fixed-rate mortgage loans payable and seven variable-rate mortgage loans payable with effective interest rates ranging from 2.45% to 6.60% per annum based on interest rates in effect as of September 30, 2019 and a weighted average effective interest rate of 3.92%. As of December 31, 2018, we had 57 fixed-rate mortgage loans payable and six variable-rate mortgage loans payable with effective interest rates ranging from 2.45% to 8.46% per annum based on interest rates in effect as of December 31, 2018 and a weighted average effective interest rate of 3.98%. We are required by the terms of certain loan documents to meet certain covenants, such as net worth ratios, fixed charge coverage ratios, leverage ratios and reporting requirements. For the three and nine months ended September 30, 2019, we incurred a total loss on extinguishment of debt of $2,179,000, which is recorded to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The loss on extinguishment was primarily related to the write-off of unamortized deferred financing fees, unamortized debt discount and a prepayment penalty associated with the payoff of a mortgage loan payable and the Trilogy OpCo Line of Credit, as defined in Note 8, Lines of Credit and Term Loans, that were due to mature in November 2047 and April 2021, respectively. The source of funds for the payoff was from the 2019 Trilogy Credit Facility, as defined in Note 8, Lines of Credit and Term Loans. Mortgage loans payable, net consisted of the following as of September 30, 2019 and December 31, 2018:
The following table reflects the changes in the carrying amount of mortgage loans payable for the nine months ended September 30, 2019 and 2018:
As of September 30, 2019, the principal payments due on our mortgage loans payable for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter were as follows:
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Litigation We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Matters We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. Other Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business, which include calls/puts to sell/acquire properties. In our view, these matters are not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Redeemable Noncontrolling Interest (Tables) |
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Temporary Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the nine months ended September 30, 2019 and 2018:
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Other Assets, Net (Tables) |
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Net | Other assets, net consisted of the following as of September 30, 2019 and December 31, 2018:
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Summarized Financial Information of Unconsolidated Entity | The following is summarized financial information of our investments in unconsolidated entities:
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding our accompanying condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States, or GAAP, in all material respects, and have been consistently applied in preparing our accompanying condensed consolidated financial statements. Basis of Presentation Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership, the wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries in which we have control, as well as any VIEs in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance. We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries of which we have control, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership, and as of September 30, 2019 and December 31, 2018, we owned greater than a 99.99% general partnership interest therein. As of September 30, 2019 and December 31, 2018, our advisor owned less than a 0.01% limited partnership interest in our operating partnership. Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our accompanying condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation. Interim Unaudited Financial Data Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K, as filed with the SEC on March 21, 2019. Use of Estimates The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. Leases On January 1, 2019, we adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC Topic 842. ASC Topic 842 supersedes ASC Topic 840, Leases, or ASC Topic 840. We adopted ASC Topic 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. Therefore, with respect to our leases as both lessees and lessors, information is presented under ASC Topic 842 as of and for the three and nine months ended September 30, 2019 and under ASC Topic 840 as of December 31, 2018 and for the three and nine months ended September 30, 2018. In addition, ASC Topic 842 provides a practical expedient package that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We elected such practical expedient package upon our adoption of ASC Topic 842 on January 1, 2019. We determine if a contract is a lease upon inception of the lease. We maintain a distinction between finance and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Lessee: Pursuant to ASC Topic 842, lessees are required to recognize the following for all leases with terms greater than 12 months at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The lease liability is calculated by using either the implicit rate of the lease or the incremental borrowing rate. As a result of the adoption of ASC Topic 842 on January 1, 2019, we recognized an initial amount of lease liability of $198,453,000 in our condensed consolidated balance sheet for all of our operating leases for which we are the lessee, including facilities leases and ground leases. In addition, we recorded a corresponding right-of-use asset of $211,679,000, which is the lease liability, net of the existing prepaid rent asset and accrued straight-line rent liability balance and adjusted for unamortized above/below market ground lease intangibles. The accretion of lease liability and amortization expense on right-of-use assets for our operating leases are included in rental expenses in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The operating lease liability was calculated using our incremental borrowing rate based on the information available as of our adoption date. The accounting for our existing capital (finance) leases upon adoption of ASC Topic 842 remains substantially unchanged. For our finance leases, the accretion of lease liability is included in interest expense and the amortization expense on right-of-use assets is included in depreciation and amortization in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Further, finance lease assets are included within real estate investments, net and finance lease liabilities are included within financing obligations in our accompanying condensed consolidated balance sheets. Lessor: Pursuant to ASC Topic 842, lessors bifurcate lease revenues into lease components and non-lease components and separately recognize and disclose non-lease components that are executory in nature. Lease components continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606, Revenue from Contracts with Customers, or ASC Topic 606. See “Revenue Recognition” section below. ASC Topic 842 also provides for a practical expedient package that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. Such practical expedient is limited to circumstances in which: (i) the timing and pattern of transfer are the same for the non-lease component and the related lease component; and (ii) the lease component, if accounted for separately, would be classified as an operating lease. In addition, such practical expedient causes an entity to assess whether a contract is predominately lease or service based, and recognize the revenue from the entire contract under the relevant accounting guidance. Effective upon our adoption of ASC Topic 842 on January 1, 2019, we recognize revenue for our medical office buildings, senior housing, skilled nursing facilities and hospitals segments under ASC Topic 842 as real estate revenue. Minimum annual rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). Differences between real estate revenue recognized and cash amounts contractually due from tenants under the lease agreements are recorded to deferred rent receivable. Tenant reimbursement revenue, which comprises additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, are considered non-lease components. We qualified for and elected the practical expedient as outlined above to combine the non-lease component with the lease component, which is the predominant component, and therefore is recognized as part of real estate revenue. In addition as lessors, we exclude certain lessor costs (i.e., property taxes and insurance) paid directly by a lessee to third parties on our behalf from our measurement of variable lease revenue and associated expense (i.e., no gross up of revenue and expense for these costs); and include lessor costs that we paid and are reimbursed by the lessee in our measurement of variable lease revenue and associated expense (i.e., gross up revenue and expense for these costs). Therefore, we no longer record revenue or expense when the lessee pays the property taxes and insurance directly to a third party. Our senior housing — RIDEA facilities offer residents room and board (lease component), standard meals and monthly healthcare services (non-lease component), and certain ancillary services that are not contemplated in the lease with each resident (i.e., laundry, guest meals, etc.). For our senior housing — RIDEA facilities, we recognize revenue under ASC Topic 606 as resident fees and services, based on our predominance assessment from electing the practical expedient outlined above. See “Revenue Recognition” section below. See Note 17, Leases, for a further discussion. Revenue Recognition On January 1, 2018, we adopted ASC Topic 606, applying the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The adoption of ASC Topic 606 did not have a material impact on the measurement nor on the recognition of revenue as of January 1, 2018; therefore, no cumulative adjustment has been made to the opening balance of retained earnings at the beginning of 2018. Real estate revenue Prior to January 1, 2019, minimum annual rental revenue was recognized on a straight-line basis over the term of the related lease (including rent holidays) in accordance with ASC Topic 840. Differences between real estate revenue recognized and cash amounts contractually due from tenants under the lease agreements were recorded to deferred rent receivable or deferred rent liability, as applicable. Tenant reimbursement revenue, which comprises additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, was recognized as revenue in the period in which the related expenses were incurred. Tenant reimbursements were recognized and presented in accordance with ASC Subtopic 606-10-55-36, Revenue Recognition — Principal Versus Agent Consideration, or ASC Subtopic 606. ASC Subtopic 606 requires that these reimbursements be recorded on a gross basis as we are generally primarily responsible to fulfill the promise to provide specified goods and services. We recognized lease termination fees at such time when there was a signed termination letter agreement, all of the conditions of such agreement had been met and the tenant was no longer occupying the property. Effective January 1, 2019, we recognize real estate revenue in accordance with ASC Topic 842. See “Leases” section above. Resident fees and services revenue Disaggregation of Resident Fees and Services Revenue The following tables disaggregate our resident fees and services revenue by line of business, according to whether such revenue is recognized at a point in time or over time:
The following tables disaggregate our resident fees and services revenue by payor class:
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Accounts Receivable, Net — Resident Fees and Services Revenue The beginning and ending balances of accounts receivable, net — resident fees and services are as follows:
Deferred Revenue — Resident Fees and Services Revenue The beginning and ending balances of deferred revenue — resident fees and services, all of which relates to private and other payors, are as follows:
Tenant and Resident Receivables and Allowance for Uncollectible Accounts Resident receivables are carried net of an allowance for uncollectible amounts. An allowance is maintained for estimated losses resulting from the inability of residents and payors to meet the contractual obligations under their lease or service agreements. Upon our adoption of ASC Topic 606, substantially all of such allowances are recorded as direct reductions of resident fees and services revenue as contractual adjustments provided to third-party payors or implicit price concessions in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Our determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the residents’ financial condition, security deposits, cash collection patterns by payor and by state, current economic conditions and other relevant factors. Prior to our adoption of ASC Topic 842, tenant receivables and unbilled deferred rent receivables were reduced for uncollectible amounts. Such amounts were charged to bad debt expense, which was included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Effective upon our adoption of ASC Topic 842 on January 1, 2019, such amounts are recognized as direct reductions of real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Accounts Payable and Accrued Liabilities As of September 30, 2019 and December 31, 2018, accounts payable and accrued liabilities primarily includes insurance payables of $33,846,000 and $32,123,000, respectively, reimbursement of payroll related costs to the managers of our senior housing — RIDEA facilities and integrated senior health campuses of $28,967,000 and $26,428,000, respectively, accrued property taxes of $17,496,000 and $15,121,000, respectively, accrued distributions of $9,673,000 and $10,189,000, respectively, and accrued capital expenditures to unaffiliated third parties of $16,277,000 and $12,490,000, respectively. Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update, or ASU, 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. Subsequently, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, or ASU 2018-19, which amended the scope of ASU 2016-13 to clarify that operating lease receivables should be accounted for under the new leasing standard ASC Topic 842. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, or ASU 2019-04, to increase stakeholders’ awareness of the amendments and to expedite improvements to the Accounting Standards Codification. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief, or ASU 2019-05, to address certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. ASU 2016-13, ASU 2018-19, ASU 2019-04 and ASU 2019-05 are effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of such accounting pronouncements on January 1, 2020 will have a material impact to our consolidated financial statements and disclosures based on our ongoing evaluation. In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13, which modifies the disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We do not expect that the adoption of ASU 2018-13 on January 1, 2020 will have a material impact to our consolidated financial statement disclosures. |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership, the wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries in which we have control, as well as any VIEs in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance. We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries of which we have control, will own substantially all of the interests in properties acquired on our behalf. Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our accompanying condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation. |
Interim Unaudited Financial Data | Interim Unaudited Financial Data Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K, as filed with the SEC on March 21, 2019. |
Use of Estimates | Use of Estimates The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. |
Leases - Lessee | Leases On January 1, 2019, we adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC Topic 842. ASC Topic 842 supersedes ASC Topic 840, Leases, or ASC Topic 840. We adopted ASC Topic 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. Therefore, with respect to our leases as both lessees and lessors, information is presented under ASC Topic 842 as of and for the three and nine months ended September 30, 2019 and under ASC Topic 840 as of December 31, 2018 and for the three and nine months ended September 30, 2018. In addition, ASC Topic 842 provides a practical expedient package that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We elected such practical expedient package upon our adoption of ASC Topic 842 on January 1, 2019. We determine if a contract is a lease upon inception of the lease. We maintain a distinction between finance and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Lessee: Pursuant to ASC Topic 842, lessees are required to recognize the following for all leases with terms greater than 12 months at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The lease liability is calculated by using either the implicit rate of the lease or the incremental borrowing rate. As a result of the adoption of ASC Topic 842 on January 1, 2019, we recognized an initial amount of lease liability of $198,453,000 in our condensed consolidated balance sheet for all of our operating leases for which we are the lessee, including facilities leases and ground leases. In addition, we recorded a corresponding right-of-use asset of $211,679,000, which is the lease liability, net of the existing prepaid rent asset and accrued straight-line rent liability balance and adjusted for unamortized above/below market ground lease intangibles. The accretion of lease liability and amortization expense on right-of-use assets for our operating leases are included in rental expenses in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The operating lease liability was calculated using our incremental borrowing rate based on the information available as of our adoption date. The accounting for our existing capital (finance) leases upon adoption of ASC Topic 842 remains substantially unchanged. For our finance leases, the accretion of lease liability is included in interest expense and the amortization expense on right-of-use assets is included in depreciation and amortization in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Further, finance lease assets are included within real estate investments, net and finance lease liabilities are included within financing obligations in our accompanying condensed consolidated balance sheets. |
Leases - Lessor | Leases On January 1, 2019, we adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC Topic 842. ASC Topic 842 supersedes ASC Topic 840, Leases, or ASC Topic 840. We adopted ASC Topic 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. Therefore, with respect to our leases as both lessees and lessors, information is presented under ASC Topic 842 as of and for the three and nine months ended September 30, 2019 and under ASC Topic 840 as of December 31, 2018 and for the three and nine months ended September 30, 2018. In addition, ASC Topic 842 provides a practical expedient package that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We elected such practical expedient package upon our adoption of ASC Topic 842 on January 1, 2019. We determine if a contract is a lease upon inception of the lease. We maintain a distinction between finance and operating leases, which is substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. Lessor: Pursuant to ASC Topic 842, lessors bifurcate lease revenues into lease components and non-lease components and separately recognize and disclose non-lease components that are executory in nature. Lease components continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606, Revenue from Contracts with Customers, or ASC Topic 606. See “Revenue Recognition” section below. ASC Topic 842 also provides for a practical expedient package that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. Such practical expedient is limited to circumstances in which: (i) the timing and pattern of transfer are the same for the non-lease component and the related lease component; and (ii) the lease component, if accounted for separately, would be classified as an operating lease. In addition, such practical expedient causes an entity to assess whether a contract is predominately lease or service based, and recognize the revenue from the entire contract under the relevant accounting guidance. Effective upon our adoption of ASC Topic 842 on January 1, 2019, we recognize revenue for our medical office buildings, senior housing, skilled nursing facilities and hospitals segments under ASC Topic 842 as real estate revenue. Minimum annual rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). Differences between real estate revenue recognized and cash amounts contractually due from tenants under the lease agreements are recorded to deferred rent receivable. Tenant reimbursement revenue, which comprises additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, are considered non-lease components. We qualified for and elected the practical expedient as outlined above to combine the non-lease component with the lease component, which is the predominant component, and therefore is recognized as part of real estate revenue. In addition as lessors, we exclude certain lessor costs (i.e., property taxes and insurance) paid directly by a lessee to third parties on our behalf from our measurement of variable lease revenue and associated expense (i.e., no gross up of revenue and expense for these costs); and include lessor costs that we paid and are reimbursed by the lessee in our measurement of variable lease revenue and associated expense (i.e., gross up revenue and expense for these costs). Therefore, we no longer record revenue or expense when the lessee pays the property taxes and insurance directly to a third party. Our senior housing — RIDEA facilities offer residents room and board (lease component), standard meals and monthly healthcare services (non-lease component), and certain ancillary services that are not contemplated in the lease with each resident (i.e., laundry, guest meals, etc.). For our senior housing — RIDEA facilities, we recognize revenue under ASC Topic 606 as resident fees and services, based on our predominance assessment from electing the practical expedient outlined above. See “Revenue Recognition” section below. See Note 17, Leases, for a further discussion. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted ASC Topic 606, applying the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The adoption of ASC Topic 606 did not have a material impact on the measurement nor on the recognition of revenue as of January 1, 2018; therefore, no cumulative adjustment has been made to the opening balance of retained earnings at the beginning of 2018. Real estate revenue Prior to January 1, 2019, minimum annual rental revenue was recognized on a straight-line basis over the term of the related lease (including rent holidays) in accordance with ASC Topic 840. Differences between real estate revenue recognized and cash amounts contractually due from tenants under the lease agreements were recorded to deferred rent receivable or deferred rent liability, as applicable. Tenant reimbursement revenue, which comprises additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, was recognized as revenue in the period in which the related expenses were incurred. Tenant reimbursements were recognized and presented in accordance with ASC Subtopic 606-10-55-36, Revenue Recognition — Principal Versus Agent Consideration, or ASC Subtopic 606. ASC Subtopic 606 requires that these reimbursements be recorded on a gross basis as we are generally primarily responsible to fulfill the promise to provide specified goods and services. We recognized lease termination fees at such time when there was a signed termination letter agreement, all of the conditions of such agreement had been met and the tenant was no longer occupying the property. Effective January 1, 2019, we recognize real estate revenue in accordance with ASC Topic 842. See “Leases” section above. |
Tenant and Resident Receivables and Allowance for Uncollectible Accounts | Tenant and Resident Receivables and Allowance for Uncollectible Accounts Resident receivables are carried net of an allowance for uncollectible amounts. An allowance is maintained for estimated losses resulting from the inability of residents and payors to meet the contractual obligations under their lease or service agreements. Upon our adoption of ASC Topic 606, substantially all of such allowances are recorded as direct reductions of resident fees and services revenue as contractual adjustments provided to third-party payors or implicit price concessions in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Our determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the residents’ financial condition, security deposits, cash collection patterns by payor and by state, current economic conditions and other relevant factors. Prior to our adoption of ASC Topic 842, tenant receivables and unbilled deferred rent receivables were reduced for uncollectible amounts. Such amounts were charged to bad debt expense, which was included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Effective upon our adoption of ASC Topic 842 on January 1, 2019, such amounts are recognized as direct reductions of real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income (loss). |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities As of September 30, 2019 and December 31, 2018, accounts payable and accrued liabilities primarily includes insurance payables of $33,846,000 and $32,123,000, respectively, reimbursement of payroll related costs to the managers of our senior housing — RIDEA facilities and integrated senior health campuses of $28,967,000 and $26,428,000, respectively, accrued property taxes of $17,496,000 and $15,121,000, respectively, accrued distributions of $9,673,000 and $10,189,000, respectively, and accrued capital expenditures to unaffiliated third parties of $16,277,000 and $12,490,000, respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update, or ASU, 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. Subsequently, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, or ASU 2018-19, which amended the scope of ASU 2016-13 to clarify that operating lease receivables should be accounted for under the new leasing standard ASC Topic 842. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, or ASU 2019-04, to increase stakeholders’ awareness of the amendments and to expedite improvements to the Accounting Standards Codification. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief, or ASU 2019-05, to address certain stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. ASU 2016-13, ASU 2018-19, ASU 2019-04 and ASU 2019-05 are effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of such accounting pronouncements on January 1, 2020 will have a material impact to our consolidated financial statements and disclosures based on our ongoing evaluation. In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13, which modifies the disclosure requirements in ASC Topic 820, Fair Value Measurements and Disclosures, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. We do not expect that the adoption of ASU 2018-13 on January 1, 2020 will have a material impact to our consolidated financial statement disclosures. |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands |
Total |
Total Stockholders' Equity |
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Noncontrolling Interests |
|||
---|---|---|---|---|---|---|---|---|---|---|
Beginning balance, Shares at Dec. 31, 2017 | 199,343,234 | |||||||||
Beginning balance Stockholders' Equity at Dec. 31, 2017 | $ 1,346,575 | $ 1,187,850 | $ 1,993 | $ 1,785,872 | $ (598,044) | $ (1,971) | $ 158,725 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Offering costs — common stock | (6) | (6) | (6) | |||||||
Issuance of vested and nonvested restricted common stock, Shares | 22,500 | |||||||||
Issuance of vested and nonvested restricted common stock | 41 | 41 | 41 | |||||||
Issuance of common stock under the DRIP, shares | 4,902,237 | |||||||||
Issuance of common stock under the DRIP | 45,444 | 45,444 | $ 49 | 45,395 | ||||||
Amortization of nonvested common stock compensation | 130 | 130 | 130 | |||||||
Stock based compensation | 585 | 585 | ||||||||
Repurchase of common stock, shares | (5,764,926) | |||||||||
Repurchase of common stock | (53,099) | (53,099) | $ (57) | (53,042) | ||||||
Contributions from noncontrolling interests | 4,470 | 4,470 | ||||||||
Distributions to noncontrolling interests | (5,246) | (5,246) | ||||||||
Reclassification of noncontrolling interests to mezzanine equity | (585) | (585) | ||||||||
Fair value adjustment to redeemable noncontrolling interests | (437) | (306) | (306) | (131) | ||||||
Distributions declared | (89,829) | (89,829) | (89,829) | |||||||
Net income (loss) | 12,800 | 11,707 | 11,707 | 1,093 | [1] | |||||
Other comprehensive loss | (374) | (374) | (374) | |||||||
Ending balance, Shares at Sep. 30, 2018 | 198,503,045 | |||||||||
Ending balance Stockholders' Equity at Sep. 30, 2018 | 1,260,469 | 1,101,558 | $ 1,985 | 1,778,084 | (676,166) | (2,345) | 158,911 | |||
Beginning balance, Shares at Jun. 30, 2018 | 198,864,815 | |||||||||
Beginning balance Stockholders' Equity at Jun. 30, 2018 | 1,292,381 | 1,131,742 | $ 1,988 | 1,781,514 | (649,551) | (2,209) | 160,639 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of vested and nonvested restricted common stock, Shares | 15,000 | |||||||||
Issuance of vested and nonvested restricted common stock | 27 | 27 | 27 | |||||||
Issuance of common stock under the DRIP, shares | 1,617,584 | |||||||||
Issuance of common stock under the DRIP | 14,995 | 14,995 | $ 16 | 14,979 | ||||||
Amortization of nonvested common stock compensation | 45 | 45 | 45 | |||||||
Stock based compensation | 195 | 195 | ||||||||
Repurchase of common stock, shares | (1,994,354) | |||||||||
Repurchase of common stock | (18,399) | (18,399) | $ (19) | (18,380) | ||||||
Distributions to noncontrolling interests | (1,873) | (1,873) | ||||||||
Reclassification of noncontrolling interests to mezzanine equity | (195) | (195) | ||||||||
Fair value adjustment to redeemable noncontrolling interests | (144) | (101) | (101) | (43) | ||||||
Distributions declared | (30,227) | (30,227) | (30,227) | |||||||
Net income (loss) | 3,800 | 3,612 | 3,612 | 188 | [1] | |||||
Other comprehensive loss | (136) | (136) | (136) | |||||||
Ending balance, Shares at Sep. 30, 2018 | 198,503,045 | |||||||||
Ending balance Stockholders' Equity at Sep. 30, 2018 | 1,260,469 | 1,101,558 | $ 1,985 | 1,778,084 | (676,166) | (2,345) | 158,911 | |||
Beginning balance, Shares at Dec. 31, 2018 | 197,557,377 | |||||||||
Beginning balance Stockholders' Equity at Dec. 31, 2018 | 1,218,635 | 1,060,507 | $ 1,975 | 1,765,840 | (704,748) | (2,560) | 158,128 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Offering costs — common stock | (84) | (84) | (84) | |||||||
Issuance of vested and nonvested restricted common stock, Shares | 22,500 | |||||||||
Issuance of vested and nonvested restricted common stock | 42 | 42 | 42 | |||||||
Issuance of common stock under the DRIP, shares | 4,493,074 | |||||||||
Issuance of common stock under the DRIP | 42,100 | 42,100 | $ 45 | 42,055 | ||||||
Amortization of nonvested common stock compensation | 130 | 130 | 130 | |||||||
Stock based compensation | 585 | 585 | ||||||||
Repurchase of common stock, shares | (7,682,977) | |||||||||
Repurchase of common stock | (72,456) | (72,456) | $ (77) | (72,379) | ||||||
Contributions from noncontrolling interests | 3,000 | 3,000 | ||||||||
Distributions to noncontrolling interests | (5,452) | (5,452) | ||||||||
Reclassification of noncontrolling interests to mezzanine equity | (585) | (585) | ||||||||
Fair value adjustment to redeemable noncontrolling interests | (110) | (77) | (77) | (33) | ||||||
Distributions declared | (88,300) | (88,300) | (88,300) | |||||||
Net income (loss) | (10,704) | (13,379) | (13,379) | 2,675 | [1] | |||||
Other comprehensive loss | (301) | (301) | (301) | |||||||
Ending balance, Shares at Sep. 30, 2019 | 194,389,974 | |||||||||
Ending balance Stockholders' Equity at Sep. 30, 2019 | 1,086,500 | 928,182 | $ 1,943 | 1,735,527 | (806,427) | (2,861) | 158,318 | |||
Beginning balance, Shares at Jun. 30, 2019 | 194,736,018 | |||||||||
Beginning balance Stockholders' Equity at Jun. 30, 2019 | 1,138,975 | 978,965 | $ 1,946 | 1,739,119 | (759,520) | (2,580) | 160,010 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of vested and nonvested restricted common stock, Shares | 15,000 | |||||||||
Issuance of vested and nonvested restricted common stock | 28 | 28 | 28 | |||||||
Issuance of common stock under the DRIP, shares | 1,471,581 | |||||||||
Issuance of common stock under the DRIP | 13,789 | 13,789 | $ 15 | 13,774 | ||||||
Amortization of nonvested common stock compensation | 44 | 44 | 44 | |||||||
Stock based compensation | 195 | 195 | ||||||||
Repurchase of common stock, shares | (1,832,625) | |||||||||
Repurchase of common stock | (17,321) | (17,321) | $ (18) | (17,303) | ||||||
Distributions to noncontrolling interests | (1,817) | (1,817) | ||||||||
Reclassification of noncontrolling interests to mezzanine equity | (195) | (195) | ||||||||
Fair value adjustment to redeemable noncontrolling interests | (194) | (135) | (135) | (59) | ||||||
Distributions declared | (29,603) | (29,603) | (29,603) | |||||||
Net income (loss) | (17,120) | (17,304) | (17,304) | 184 | [1] | |||||
Other comprehensive loss | (281) | (281) | (281) | |||||||
Ending balance, Shares at Sep. 30, 2019 | 194,389,974 | |||||||||
Ending balance Stockholders' Equity at Sep. 30, 2019 | $ 1,086,500 | $ 928,182 | $ 1,943 | $ 1,735,527 | $ (806,427) | $ (2,861) | $ 158,318 | |||
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Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 13. Equity Preferred Stock Our charter authorizes us to issue 200,000,000 shares of our preferred stock, par value $0.01 per share. As of September 30, 2019 and December 31, 2018, no shares of preferred stock were issued and outstanding. Common Stock Our charter authorizes us to issue 1,000,000,000 shares of our common stock, par value $0.01 per share. On January 15, 2013, our advisor acquired 22,222 shares of our common stock for total cash consideration of $200,000 and was admitted as our initial stockholder. We used the proceeds from the sale of shares of our common stock to our advisor to make an initial capital contribution to our operating partnership. On March 12, 2015, we terminated the primary portion of our initial public offering. We continued to offer shares of our common stock in our initial offering pursuant to the Initial DRIP, until the termination of the DRIP portion of our initial offering and deregistration of our initial offering on April 22, 2015. On March 25, 2015, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $250,000,000 of additional shares of our common stock pursuant to the 2015 DRIP Offering. We did not commence offering shares to the 2015 DRIP Offering until April 22, 2015, following the deregistration of our initial offering. We continued to offer shares of our common stock pursuant to the 2015 DRIP Offering until the termination and deregistration of the 2015 DRIP Offering on March 29, 2019. On January 30, 2019, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $200,000,000 of additional shares of our common stock to be issued pursuant to the 2019 DRIP Offering. The Registration Statement on Form S-3 was automatically effective with the SEC upon its filing; however, we did not commence offering shares pursuant to the 2019 DRIP Offering until April 1, 2019, following the deregistration of the 2015 DRIP Offering. Through September 30, 2019, we had issued 184,930,598 shares of our common stock in connection with the primary portion of our initial public offering and 31,313,084 shares of our common stock pursuant to our DRIP Offerings. We also repurchased 22,003,430 shares of our common stock under our share repurchase plan and granted an aggregate of 127,500 shares of our restricted common stock to our independent directors through September 30, 2019. As of September 30, 2019 and December 31, 2018, we had 194,389,974 and 197,557,377 shares of our common stock issued and outstanding, respectively. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of noncontrolling interests, by component consisted of the following for the nine months ended September 30, 2019 and 2018:
Noncontrolling Interests As of September 30, 2019 and December 31, 2018, Trilogy REIT Holdings owned approximately 96.8% and 96.7% of Trilogy, respectively. We are the indirect owner of a 70.0% interest in Trilogy REIT Holdings pursuant to a joint venture agreement, or the Trilogy JV Agreement, with an indirect, wholly-owned subsidiary of NorthStar Healthcare Income, Inc., or NHI. We serve as the sole manager of Trilogy REIT Holdings. Prior to October 1, 2018, NHI was the indirect owner of the remaining 30.0% interest in Trilogy REIT Holdings. On October 1, 2018, we amended the Trilogy JV Agreement as a result of the purchase by an indirect, wholly-owned subsidiary of the operating partnership of Griffin-American Healthcare REIT IV, Inc., or GAHR IV JV Member, of 6.0% of the total membership interests in Trilogy REIT Holdings from a wholly-owned subsidiary of NHI. Both Griffin-American Healthcare REIT IV, Inc. and us are sponsored by American Healthcare Investors. Effective October 1, 2018, NHI and GAHR IV JV Member indirectly own a 24.0% and 6.0% membership interest, respectively, in Trilogy REIT Holdings. As of September 30, 2019 and December 31, 2018, 30.0% of the net earnings of Trilogy REIT Holdings were allocated to noncontrolling interests. In connection with our acquisition and operation of Trilogy, profit interest units in Trilogy, or the Profit Interests, were issued to Trilogy Management Services, LLC and an independent director of Trilogy, both unaffiliated third parties that manage or direct the day-to-day operations of Trilogy. The Profit Interests consist of time-based or performance-based commitments. The time-based Profit Interests were measured at their grant date fair value and vest in increments of 20.0% on each anniversary of the respective grant date over a five-year period. We amortize the time-based Profit Interests on a straight-line basis over the vesting periods, which are recorded to general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The performance-based Profit Interests are subject to a performance commitment and vest upon liquidity events as defined in the Profit Interests agreements. The performance-based Profit Interests were measured at their grant date fair value and immediately expensed. The performance-based Profit Interests are subject to fair value measurements until vesting occurs with changes to fair value recorded to general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). For both the three months ended September 30, 2019 and 2018, we recognized stock compensation expense related to Profit Interests of $195,000, and for both the nine months ended September 30, 2019 and 2018, we recognized stock compensation expense related to the Profit Interests of $585,000. There were no canceled, expired or exercised Profit Interests during the nine months ended September 30, 2019 and 2018. The nonvested awards are presented as noncontrolling interests and are re-classified to redeemable noncontrolling interests upon vesting as they have redemption features outside of our control similar to the common stock units held by Trilogy’s pre-closing management. See Note 12, Redeemable Noncontrolling Interests, for a further discussion. On January 6, 2016, one of our consolidated subsidiaries issued non-voting preferred shares of beneficial interests to qualified investors for total proceeds of $125,000. These preferred shares of beneficial interests are entitled to receive cumulative preferential cash dividends at the rate of 12.5% per annum. We classify the value of the subsidiary’s preferred shares of beneficial interests as noncontrolling interests in our accompanying condensed consolidated balance sheets and the dividends of the preferred shares of beneficial interests as net income attributable to noncontrolling interests in our accompanying condensed consolidated statements of operations and comprehensive income (loss). In addition, as of September 30, 2019 and December 31, 2018, we owned an 86.0% interest in a consolidated limited liability company that owns Lakeview IN Medical Plaza, which we acquired on January 21, 2016. As such, 14.0% of the net earnings of Lakeview IN Medical Plaza were allocated to noncontrolling interests for the three and nine months ended September 30, 2019 and 2018. Distribution Reinvestment Plan We adopted the Initial DRIP that allowed stockholders to purchase additional shares of our common stock through the reinvestment of distributions at an offering price equal to 95.0% of the primary offering price of our initial offering, subject to certain conditions. We had registered and reserved $35,000,000 in shares of our common stock for sale pursuant to the Initial DRIP in our initial offering, which we deregistered on April 22, 2015. On March 25, 2015, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $250,000,000 of additional shares of our common stock pursuant to the 2015 DRIP Offering. We commenced offering shares pursuant to the 2015 DRIP Offering, following the deregistration of our initial offering on April 22, 2015. We continued to offer shares of our common stock pursuant to the 2015 DRIP Offering until the deregistration of such offering on March 29, 2019. On January 30, 2019, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $200,000,000 of additional shares of our common stock to be issued pursuant to the 2019 DRIP Offering. We commenced offering shares pursuant to the 2019 DRIP Offering on April 1, 2019, following the deregistration of the 2015 DRIP Offering. Effective October 5, 2016, we amended and restated the Initial DRIP to amend the price at which shares of our common stock are issued pursuant to such distribution reinvestment plan. Pursuant to the Amended and Restated DRIP, shares are issued at a price equal to the most recently estimated net asset value, or NAV, of one share of our common stock, as approved and established by our board. The Amended and Restated DRIP became effective with the distribution payment to stockholders paid in the month of November 2016. In all other material respects, the terms of the 2015 DRIP Offering remain unchanged by the Amended and Restated DRIP. Since October 5, 2016, our board has approved and established an estimated per share NAV on at least an annual basis. Commencing with the distribution payment to stockholders paid in the month following such board approval, shares of our common stock issued pursuant to the Amended and Restated DRIP were or will be issued at the current estimated per share NAV until such time as our board determines an updated estimated per share NAV. The following is a summary of our historical and current estimated per share NAV:
For the three and nine months ended September 30, 2019, $13,789,000 and $42,100,000, respectively, in distributions were reinvested and 1,471,581 and 4,493,074 shares of our common stock, respectively, were issued pursuant to the 2015 DRIP Offering and 2019 DRIP Offering. For the three and nine months ended September 30, 2018, $14,995,000 and $45,444,000, respectively, in distributions were reinvested and 1,617,584 and 4,902,237 shares of our common stock, respectively, were issued pursuant to the 2015 DRIP Offering. As of September 30, 2019 and December 31, 2018, a total of $291,811,000 and $249,711,000, respectively, in distributions were reinvested that resulted in 31,313,084 and 26,820,010 shares of our common stock, respectively, being issued pursuant to our DRIP Offerings. Share Repurchase Plan Our board has approved a share repurchase plan, which allows for repurchases of shares of our common stock by us when certain criteria are met. Share repurchases will be made at the sole discretion of our board. Subject to the availability of the funds for share repurchases, we will generally limit the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year. Additionally, effective with respect to share repurchase requests submitted for repurchase during the second quarter 2019, the number of shares that we will repurchase during any fiscal quarter will be limited to an amount equal to the net proceeds that we received from the sale of shares issued pursuant to the DRIP Offerings during the immediately preceding completed fiscal quarter; provided however, that shares subject to a repurchase requested upon the death or “qualifying disability,” as defined in our share repurchase plan, of a stockholder will not be subject to this quarterly cap or to our existing cap on repurchases to 5.0% of the weighted average number of shares outstanding during the calendar year prior to the repurchase date. Funds for the repurchase of shares of our common stock will come from the cumulative proceeds we receive from the sale of shares of our common stock pursuant to our DRIP Offerings. Furthermore, our share repurchase plan, as amended, provides that if there are insufficient funds to honor all repurchase requests, pending requests may be honored among all requests for repurchase in any given repurchase period as follows: first, repurchases in full as to repurchases that would result in a stockholder owning less than $2,500 of shares; and, next, pro rata as to other repurchase requests. All repurchases will be subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or qualifying disability. Further, all share repurchases will be repurchased following a one-year holding period at a price between 92.5% and 100% of each stockholder’s repurchase amount, depending on the period of time their shares have been held. Until October 4, 2016, the repurchase amount for shares repurchased under our share repurchase plan was equal to the lesser of the amount a stockholder paid for their shares of our common stock or the most recent per share offering price. However, if shares of our common stock were repurchased in connection with a stockholder’s death or qualifying disability, the repurchase price was no less than 100% of the price paid to acquire the shares of our common stock from us. Effective with respect to share repurchase requests submitted during the fourth quarter 2016, the Repurchase Amount, as such term is defined in our share repurchase plan, is equal to the lesser of (i) the amount per share that a stockholder paid for their shares of our common stock, or (ii) the most recent estimated value of one share of our common stock, as determined by our board. Accordingly, commencing with the share repurchase requests submitted during the fourth quarter 2016, we repurchase shares as follows: (a) for stockholders who have continuously held their shares of our common stock for at least one year, the price will be 92.5% of the Repurchase Amount; (b) for stockholders who have continuously held their shares of our common stock for at least two years, the price will be 95.0% of the Repurchase Amount; (c) for stockholders who have continuously held their shares of our common stock for at least three years, the price will be 97.5% of the Repurchase Amount; (d) for stockholders who have held their shares of our common stock for at least four years, the price will be 100% of the Repurchase Amount; and (e) for requests submitted pursuant to a death or a qualifying disability, the price will be 100% of the amount per share the stockholder paid for their shares of common stock (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock). Since October 5, 2016, our board has approved and established an estimated per share NAV on at least an annual basis. See summary of our historical and current estimated per share NAV in the “Distribution Reinvestment Plan” section above. Accordingly, commencing with share repurchase requests submitted during the quarter that our board has approved and established an estimated per share NAV, such NAV per share served or will serve as the Repurchase Amount for stockholders who purchased their shares at a price equal to or greater than such NAV per share in our initial offering, until such time as our board determines an updated estimated per share NAV. For the three months ended September 30, 2019 and 2018, we received share repurchase requests of 3,260,198 and 1,994,354 shares of our common stock, respectively, and repurchased 1,832,625 and 1,994,354 shares of our common stock, respectively, for an aggregate of $17,321,000 and $18,399,000, respectively, at an average repurchase price of $9.45 and $9.23 per share, respectively. For the nine months ended September 30, 2019 and 2018, we received share repurchase requests of 12,395,976 and 5,764,926 shares of our common stock, respectively, and repurchased 7,682,977 and 5,764,926 shares of our common stock, respectively, for an aggregate of $72,456,000 and $53,099,000, respectively, at an average repurchase price of $9.43 and $9.21 per share, respectively. As of September 30, 2019 and December 31, 2018, we received cumulative share repurchase requests 26,716,429 and 14,320,453 shares of our common stock, respectively, and repurchased 22,003,430 and 14,320,453 shares of our common stock, respectively, for an aggregate of $204,391,000 and $131,935,000, respectively, at an average repurchase price of $9.29 and $9.21 per share, respectively. Shares were repurchased using proceeds we received from the cumulative sale of shares of our common stock pursuant to our DRIP Offerings. 2013 Incentive Plan We adopted the 2013 Incentive Plan, or our incentive plan, pursuant to which our board or a committee of our independent directors may make grants of options, shares of our common stock, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our incentive plan is 2,000,000 shares. For the three and nine months ended September 30, 2019, we granted an aggregate of 15,000 and 22,500 shares, respectively, of our restricted common stock, at a weighted average grant date fair value of $9.37 per share, to our independent directors in connection with their re-election to our board or in consideration for their past services rendered. Such shares vest as to 20.0% of the shares on the date of grant on each of the first four anniversaries of the grant date. For both the three months ended September 30, 2019 and 2018, we recognized stock compensation expense related to the independent director grants of $72,000, and for the nine months ended September 30, 2019 and 2018, we recognized stock compensation expense related to the director grants of $172,000 and $171,000, respectively. Such stock compensation expense is included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income (loss). |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 17. Leases Lessor We have operating leases with tenants that expire at various dates through 2059. For the three and nine months ended September 30, 2019, we recognized $26,668,000 and $88,619,000, respectively, of revenues related to operating lease payments, of which $4,649,000 and $13,739,000, respectively, was for variable lease payments. The following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for leases in effect for properties we wholly own for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter:
Future minimum base rent contractually due under operating leases, excluding tenant reimbursements of certain costs, as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
Lessee We lease certain land, buildings, furniture, fixtures, campus equipment, office equipment and automobiles. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Most leases include one or more options to renew, with renewal terms that generally can extend at various dates through 2112, excluding extension options. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. As of September 30, 2019, we have additional operating leases that have not yet commenced of $56,945,000. These operating leases will commence between fiscal year 2019 and fiscal year 2020 with lease terms of up to 15 years. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments that are adjusted periodically based on Consumer Price Index, and may also include other variable lease costs (i.e., common area maintenance, property taxes and insurance). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs were as follows:
Other information related to leases was as follows:
Operating Leases The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities:
Future minimum lease obligations under non-cancelable ground and other lease obligations as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
Finance Leases The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities:
Future minimum lease payments under finance leases as of December 31, 2018 and for each of the next five years ending December 31 and thereafter was as follows:
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Leases | 17. Leases Lessor We have operating leases with tenants that expire at various dates through 2059. For the three and nine months ended September 30, 2019, we recognized $26,668,000 and $88,619,000, respectively, of revenues related to operating lease payments, of which $4,649,000 and $13,739,000, respectively, was for variable lease payments. The following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for leases in effect for properties we wholly own for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter:
Future minimum base rent contractually due under operating leases, excluding tenant reimbursements of certain costs, as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
Lessee We lease certain land, buildings, furniture, fixtures, campus equipment, office equipment and automobiles. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Most leases include one or more options to renew, with renewal terms that generally can extend at various dates through 2112, excluding extension options. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. As of September 30, 2019, we have additional operating leases that have not yet commenced of $56,945,000. These operating leases will commence between fiscal year 2019 and fiscal year 2020 with lease terms of up to 15 years. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments that are adjusted periodically based on Consumer Price Index, and may also include other variable lease costs (i.e., common area maintenance, property taxes and insurance). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs were as follows:
Other information related to leases was as follows:
Operating Leases The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities:
Future minimum lease obligations under non-cancelable ground and other lease obligations as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
Finance Leases The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities:
Future minimum lease payments under finance leases as of December 31, 2018 and for each of the next five years ending December 31 and thereafter was as follows:
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Leases | 17. Leases Lessor We have operating leases with tenants that expire at various dates through 2059. For the three and nine months ended September 30, 2019, we recognized $26,668,000 and $88,619,000, respectively, of revenues related to operating lease payments, of which $4,649,000 and $13,739,000, respectively, was for variable lease payments. The following table sets forth the undiscounted cash flows for future minimum base rents due under operating leases for leases in effect for properties we wholly own for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter:
Future minimum base rent contractually due under operating leases, excluding tenant reimbursements of certain costs, as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
Lessee We lease certain land, buildings, furniture, fixtures, campus equipment, office equipment and automobiles. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Most leases include one or more options to renew, with renewal terms that generally can extend at various dates through 2112, excluding extension options. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. As of September 30, 2019, we have additional operating leases that have not yet commenced of $56,945,000. These operating leases will commence between fiscal year 2019 and fiscal year 2020 with lease terms of up to 15 years. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments that are adjusted periodically based on Consumer Price Index, and may also include other variable lease costs (i.e., common area maintenance, property taxes and insurance). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs were as follows:
Other information related to leases was as follows:
Operating Leases The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities:
Future minimum lease obligations under non-cancelable ground and other lease obligations as of December 31, 2018 for each of the next five years ending December 31 and thereafter was as follows:
Finance Leases The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities:
Future minimum lease payments under finance leases as of December 31, 2018 and for each of the next five years ending December 31 and thereafter was as follows:
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Nov. 08, 2019 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Griffin-American Healthcare REIT III, Inc. | |
Entity Central Index Key | 0001566912 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 195,346,045 |
Mortgage Loans Payable, Net - Mortgage Loans Payable (Detail) - USD ($) $ in Thousands |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
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Debt Instrument: | ||||||
Total debt | $ 829,456 | $ 713,030 | ||||
Deferred finance costs, net | (8,690) | (2,311) | ||||
Add: premium | 394 | 663 | ||||
Less: discount | (14,695) | (16,607) | ||||
Change in Carrying Amount of Mortgage Loans Payable [Roll Forward] | ||||||
Beginning balance | 688,262 | [1] | $ 613,558 | |||
Borrowings under mortgage loans payable | 182,417 | 177,637 | ||||
Amortization of deferred financing costs | 1,187 | 995 | ||||
Amortization of discount/premium on mortgage loans payable | 502 | 365 | ||||
Scheduled principal payments on mortgage loans payable | (59,706) | (7,539) | ||||
Payoff of mortgage loans payable | (6,286) | (94,449) | ||||
Deferred financing costs | (1,119) | (3,613) | ||||
Ending balance | 805,257 | [1] | $ 686,954 | |||
Fixed Rate Debt | ||||||
Debt Instrument: | ||||||
Total debt | 736,796 | 624,616 | ||||
Variable Rate Debt | ||||||
Debt Instrument: | ||||||
Total debt | 92,660 | 88,414 | ||||
Mortgage Loans Payable, Net | ||||||
Debt Instrument: | ||||||
Deferred finance costs, net | $ (9,898) | $ (8,824) | ||||
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Derivative Financial Instruments (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
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Derivative [Line Items] | ||
Fair Value | $ (5,275) | $ 417 |
Swap, .82% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Derivative, Notional Amount | $ 140,000 | |
Index | one month LIBOR | |
Interest Rate | 0.82% | |
Maturity Date | Feb. 03, 2019 | |
Fair Value | $ 0 | 221 |
Swap, .78% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Derivative, Notional Amount | $ 60,000 | |
Index | one month LIBOR | |
Interest Rate | 0.78% | |
Maturity Date | Feb. 03, 2019 | |
Fair Value | $ 0 | 97 |
Swap, 1.39% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Derivative, Notional Amount | $ 50,000 | |
Index | one month LIBOR | |
Interest Rate | 1.39% | |
Maturity Date | Feb. 03, 2019 | |
Fair Value | $ 0 | 51 |
Cap [Member] | ||
Derivative [Line Items] | ||
Instrument | Cap | |
Derivative, Notional Amount | $ 20,000 | |
Index | one month LIBOR | |
Interest Rate | 3.00% | |
Maturity Date | Sep. 23, 2021 | |
Fair Value | $ 1 | 48 |
Swap, 2.10% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Derivative, Notional Amount | $ 250,000 | |
Index | one month LIBOR | |
Interest Rate | 2.10% | |
Maturity Date | Jan. 25, 2022 | |
Fair Value | $ (3,705) | 0 |
Swap, 1.98% Interest Rate [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Derivative, Notional Amount | $ 130,000 | |
Index | one month LIBOR | |
Interest Rate | 1.98% | |
Maturity Date | Jan. 25, 2022 | |
Fair Value | $ (1,571) | $ 0 |
Summary of Significant Accounting Policies (Detail) - USD ($) $ in Thousands |
72 Months Ended | 81 Months Ended | |
---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Accounting Policies [Abstract] | |||
Percentage of ownership in operating partnership | 99.99% | 99.99% | |
Percentage of limited partnership interest | 0.01% | 0.01% | |
Insurance payable | $ 32,123 | $ 33,846 | |
Payroll related costs | 26,428 | 28,967 | |
Accrued property taxes | 15,121 | 17,496 | |
Accrued distributions | 10,189 | 9,673 | $ 9,875 |
Accrued capital expenditures | $ 12,490 | $ 16,277 |
Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loss before Income Tax, Domestic and Foreign | The components of (loss) income before taxes for the three and nine months ended September 30, 2019 and 2018 were as follows:
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Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the three and nine months ended September 30, 2019 and 2018 were as follows:
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Real Estate Investments, Net - Investments in Consolidated Properties (Detail) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | $ 2,565,343 | $ 2,477,375 |
Less: accumulated depreciation | (316,284) | (254,694) |
Real estate investments, net | 2,249,059 | 2,222,681 |
Building, improvements and construction in process [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | 2,231,745 | 2,160,944 |
Land and Land Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | 192,777 | 189,446 |
Furniture, fixtures and equipment [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate investment, at cost | $ 140,821 | $ 126,985 |
Fair Value Measurements Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
||||
---|---|---|---|---|---|---|---|---|
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||
Debt security investment | $ 71,986 | $ 69,873 | ||||||
Debt security investment, fair value | 93,369 | 94,116 | ||||||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||||||||
Mortgage loans payable, net | 805,257 | [1] | 688,262 | [1] | $ 686,954 | $ 613,558 | ||
Mortgage loans payable, net fair value | 758,777 | 618,886 | ||||||
Lines of credit and term loan, net | 746,589 | 735,737 | ||||||
Line of credit and term loan, net fair value | $ 756,269 | $ 737,982 | ||||||
|
Leases - Future Minimum Rent Payments, Finance Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Lessee, Finance Lease, Description [Abstract] | ||
2019 | $ 631 | |
2020 | 1,265 | |
2021 | 130 | |
2022 | 0 | |
2023 | 0 | |
Total finance lease payments | 2,026 | |
Less: interest | 78 | |
Present value of finance lease liabilities | $ 1,948 | |
2019 | $ 3,307 | |
2020 | 1,266 | |
2021 | 130 | |
2022 | 0 | |
2023 | 0 | |
Total capital lease payments | $ 4,703 |
Leases - Supplemental Disclosure of Cash Flows Information (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2019
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 16,602 |
Operating cash flows from finance leases | 277 |
Financing cash flows from finance leases | 2,490 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 166 |
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | 56 Months Ended | 67 Months Ended | |||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2019 |
|
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | $ 6,105 | $ 6,705 | $ 18,823 | $ 18,357 | ||||
Advisor [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% | |||||||
Acquisition price for any real estate-related investment we originate or acquire | 2.00% | |||||||
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |||
Asset Management Fee Percent | 0.75% | |||||||
Subordinated asset management fee subject to stockholders receiving distributions, percentage | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||
Percentage Of Property Oversight Fees | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||
Percentage Of Property Oversight Fees - Multiple Tenants | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | |||
Minimum percentage of lease fee | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% | |||
Maximum percentage of lease fee | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |||
Maximum percentage of construction management fee | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||
Percentage Of Operating Expenses Of Average Invested Asset | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |||
Percentage Of Operating Expense Of Net Income | 25.00% | |||||||
Disposition fees as percentage of contract sales price | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |||
Disposition fees as percentage of customary competitive real estate commission | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||
Maximum percentage of disposition fee | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |||
Acquistion Fees [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | $ 277 | $ 1,069 | $ 1,075 | $ 1,076 | ||||
Development Fees [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | 0 | 24 | 163 | 69 | ||||
Asset Management [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | 5,021 | 4,873 | 15,018 | 14,438 | ||||
Property Management Fee [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | 636 | 617 | 1,915 | 1,811 | ||||
Lease Commissions [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | 68 | 36 | 237 | 764 | ||||
Construction Management Fee [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | 56 | 38 | 255 | 52 | ||||
Operating Expense [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, expenses from transactions with related party | $ 47 | $ 48 | $ 160 | $ 147 | ||||
Percentage of operating expenses of average invested assets | 0.90% | 0.90% | ||||||
Percentage of operating expenses of net income | 20.10% | 18.40% | ||||||
Subordinated distribution of net sales proceeds [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of distribution of net proceeds from sales of properties | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Annual cumulative non compounded return on gross proceeds from sale of shares | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||
Subordinated Distribution Upon Listing [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of distribution of net proceeds from sales of properties | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Annual cumulative non compounded return upon listing of shares | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||
Subordinated Distribution Upon Termination [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distribution rate of partnership amount to sub advisor | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Annual cumulative non compounded return on gross proceeds from sale of shares | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
Other Assets, Net - Other Assets, Net (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Other Assets [Abstract] | ||
Deferred rent receivables | $ 31,693 | $ 23,334 |
Prepaid expenses, deposits and other assets | 26,059 | 29,803 |
Investment in unconsolidated entities | 20,477 | 15,432 |
Inventory | 19,457 | 21,151 |
Deferred tax assets, net | 12,023 | 9,461 |
Lease commissions, net of accumulated amortization of $1,934,000 and $1,274,000 as of September 30, 2019 and December 31, 2018, respectively | 10,403 | 8,523 |
Deferred financing costs, net of accumulated amortization of $1,356,000 and $12,487,000 as of September 30, 2019 and December 31, 2018, respectively(2) | 8,690 | 2,311 |
Lease inducement, net of accumulated amortization of $1,053,000 and $789,000 as of September 30, 2019 and December 31, 2018, respectively (with a weighted average remaining life of 11.2 years and 12.0 years as of September 30, 2019 and December 31, 2018, respectively) | 3,947 | 4,211 |
Other assets, net | 132,749 | 114,226 |
Accumulated amortization of lease commissions | 1,934 | 1,274 |
Accumulated amortization of deferred financing costs | 1,356 | 12,487 |
Accumulated amortization of lease inducements | $ 1,053 | $ 789 |
Lease Inducements, Weighted Average Remaining Life | 11 years 2 months 12 days | 12 years |
Real Estate Investments, Net - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | 81 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
Building
Campus
|
Sep. 30, 2018
USD ($)
Building
|
Sep. 30, 2019
USD ($)
Building
|
|
Real Estate Properties [Line Items] | |||||
Number of integrated senior health campuses development completed | Campus | 1 | ||||
Depreciation | $ 25,062,000 | $ 20,636,000 | $ 68,796,000 | $ 61,323,000 | |
Number of medical office buildings impaired (in buildings) | Building | 1 | ||||
Impairment of real estate investment | 0 | 0 | 0 | $ 2,542,000 | |
Number of buildings acquired from unaffiliated parties | Building | 102 | ||||
Integrated Senior Health Campuses [Member] | |||||
Real Estate Properties [Line Items] | |||||
Capital expenditures incurred | 24,714,000 | 61,448,000 | |||
Total completed development cost | 10,558,000 | ||||
Medical Office Building [Member] | |||||
Real Estate Properties [Line Items] | |||||
Capital expenditures incurred | 3,999,000 | 10,717,000 | |||
Senior Housing-RIDEA [Member] | |||||
Real Estate Properties [Line Items] | |||||
Capital expenditures incurred | 498,000 | 1,276,000 | |||
Skilled Nursing Facilities [Member] | |||||
Real Estate Properties [Line Items] | |||||
Capital expenditures incurred | 1,254,000 | 1,414,000 | |||
Senior Housing [Member] | |||||
Real Estate Properties [Line Items] | |||||
Capital expenditures incurred | 0 | 0 | |||
Hospitals [Member] | |||||
Real Estate Properties [Line Items] | |||||
Capital expenditures incurred | 0 | 50,000 | |||
Medical Office Building [Member] | |||||
Real Estate Properties [Line Items] | |||||
Impairment of real estate investment | 2,542,000 | ||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 7,387,000 | $ 7,387,000 | |||
2019 Acquisitions | |||||
Real Estate Properties [Line Items] | |||||
Asset Acquisition, Transaction Costs | $ 761,000 | $ 761,000 | $ 761,000 | ||
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% | ||||
Ownership percentage | 67.70% | ||||
Number of buildings acquired from unaffiliated parties | Building | 1 | ||||
Acquisition contract purchase price of land acquired | $ 3,056,000 | ||||
North Carolina ALF Portfolio [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of buildings acquired from unaffiliated parties | Building | 6 |
Real Estate Notes Receivable and Debt Security Investment, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Real Estate Notes Receivable and Investment, Net | |||||
Real Estate Notes Receivable and Investment | $ 70,573 | $ 70,573 | $ 97,005 | ||
Unamortized loan and closing costs, net | 1,413 | 1,413 | 1,650 | ||
Real Estate Loans Receivable [Roll Forward] | |||||
Beginning balance | 98,655 | $ 97,988 | |||
Accretion on debt security | 2,218 | 2,010 | |||
Principal repayments on real estate notes receivable | (28,650) | 0 | |||
Amortization of loan and closing costs | (37) | $ (64) | (237) | (185) | |
Ending balance | 71,986 | $ 99,813 | $ 71,986 | $ 99,813 | |
Mezzanine Fixed Rate Notes [Member] | |||||
Real Estate Notes Receivable and Investment, Net | |||||
Origination Date | Feb. 04, 2015 | ||||
Maturity date | Dec. 09, 2019 | ||||
Contractual Interest Rate | 6.75% | ||||
Maximum Advances Available | 0 | $ 0 | |||
Real Estate Notes Receivable and Investment | 0 | $ 0 | 28,650 | ||
Debt security investment [Member] | |||||
Real Estate Notes Receivable and Investment, Net | |||||
Origination Date | Oct. 15, 2015 | ||||
Maturity date | Aug. 25, 2025 | ||||
Contractual Interest Rate | 4.24% | ||||
Real Estate Notes Receivable and Investment | $ 70,573 | $ 70,573 | $ 68,355 |
Derivative Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table lists the derivative financial instruments held by us as of September 30, 2019 and December 31, 2018:
|
Real Estate Notes Receivable and Debt Security Investment, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Notes Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Notes Receivable, Net | The following is a summary of our notes receivable and debt security investment, including unamortized loan and closing costs, net as of September 30, 2019 and December 31, 2018:
___________
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Changes in Carrying Amount of Real Estate Notes Receivable | The following table reflects the changes in the carrying amount of our real estate notes receivable and debt security investment for the nine months ended September 30, 2019 and 2018:
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Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of limitation on affiliate reimbursement [Text Block] | The following table reflects our operating expenses as a percentage of average invested assets and as a percentage of net income for the 12 month periods then ended:
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Schedule Of Amounts Outstanding To Affiliates Table | The following amounts were outstanding to our affiliates as of September 30, 2019 and December 31, 2018:
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Identified Intangible Assets, Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Identified Intangible Assets, Net | 5. Identified Intangible Assets, Net Identified intangible assets, net consisted of the following as of September 30, 2019 and December 31, 2018:
___________
Amortization expense for the three months ended September 30, 2019 and 2018 was $11,566,000 and $3,227,000, respectively, which included $131,000 and $210,000, respectively, of amortization recorded against real estate revenue for above-market leases and $0 and $34,000, respectively, of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations and comprehensive income (loss). Amortization expense for the nine months ended September 30, 2019 and 2018 was $18,005,000 and $9,204,000, respectively, which included $475,000 and $766,000, respectively, of amortization recorded against real estate revenue for above-market leases and $0 and $105,000, respectively, of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations and comprehensive income (loss). The aggregate weighted average remaining life of the identified intangible assets was 9.6 years and 15.5 years as of September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019, estimated amortization expense on the identified intangible assets for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter was as follows:
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Derivative Financial Instruments |
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Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | 9. Derivative Financial Instruments We record derivative financial instruments in our accompanying condensed consolidated balance sheets as either an asset or a liability measured at fair value. The following table lists the derivative financial instruments held by us as of September 30, 2019 and December 31, 2018:
ASC Topic 815, Derivatives and Hedging, or ASC Topic 815, permits special hedge accounting if certain requirements are met. Hedge accounting allows for gains and losses on derivatives designated as hedges to be offset by the change in value of the hedged item or items or to be deferred in other comprehensive income (loss). As of September 30, 2019 and December 31, 2018, none of our derivative financial instruments were designated as hedges. Derivative financial instruments not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements of ASC Topic 815. Changes in the fair value of derivative financial instruments are recorded as a component of interest expense in our accompanying condensed consolidated statements of operations and comprehensive income (loss). For the three months ended September 30, 2019 and 2018, we recorded $(1,169,000) and $(750,000), respectively, and for the nine months ended September 30, 2019 and 2018, we recorded $(5,846,000) and $(1,127,000), respectively, as an increase to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income (loss) related to the change in the fair value of our derivative financial instruments. See Note 15, Fair Value Measurements, for a further discussion of the fair value of our derivative financial instruments. |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Business Acquisitions [Line Items] | ||
Contingent consideration obligations | $ 0 | $ 681 |
North Carolina ALF Portfolio - Clemmons [Member] | Contingent Consideration Obligation [Member] | ||
Business Acquisitions [Line Items] | ||
Business combination, contingent consideration arrangements, range of outcomes, value, high | $ 11,000 | |
Contingent consideration period earnout payment is based on | 3 months | |
Fair Value, Recurring [Member] | ||
Business Acquisitions [Line Items] | ||
Contingent consideration obligations | 681 | |
Warrants | $ 1,132 | 1,207 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Business Acquisitions [Line Items] | ||
Contingent consideration obligations | 681 | |
Warrants | $ 1,132 | $ 1,207 |
Leases - Future Minimum Rent Payments, Operating Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|
Lessee, Operating Lease, Description [Abstract] | ||||
2019 | $ 5,873 | |||
2020 | 21,838 | |||
2021 | 22,267 | |||
2022 | 22,605 | |||
2023 | 21,866 | |||
Thereafter | 176,970 | |||
Total operating lease payments | 271,419 | |||
Less: interest | 93,247 | |||
Present value of operating lease liabilities | [1] | $ 178,172 | $ 0 | |
2019 | 22,194 | |||
2020 | 22,564 | |||
2021 | 23,166 | |||
2022 | 23,702 | |||
2023 | 23,154 | |||
Thereafter | 177,927 | |||
Total operating lease payments | $ 292,707 | |||
|
Leases - Lessor, Future Minimum Rents Due (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Future Minimum Rent [Abstract] | ||
2019 | $ 24,160 | |
2020 | 95,008 | |
2021 | 93,183 | |
2022 | 86,812 | |
2023 | 79,402 | |
Thereafter | 588,898 | |
Total | $ 967,463 | |
2019 | $ 92,888 | |
2020 | 88,536 | |
2021 | 86,362 | |
2022 | 80,233 | |
2023 | 72,535 | |
Thereafter | 559,649 | |
Total | $ 980,203 |
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 67 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
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Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Granted (in shares) | 127,500 | ||||
Stock based compensation | $ 172 | $ 171 | |||
Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | |||||
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Stock based compensation | $ 72 | $ 72 | $ 172 | $ 171 | |
Common Stock | Two Thousand Thirteen Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | ||
Independent Director [Member] | Two Thousand Thirteen Incentive Plan [Member] | Restricted Stock [Member] | |||||
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock [Roll Forward] | |||||
Granted (in shares) | 15,000 | 22,500 | |||
Granted (usd per share) | $ 9.37 | $ 9.37 | $ 9.37 |
Real Estate Investments, Net - Acquisitions (Detail) $ in Thousands |
9 Months Ended |
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Sep. 30, 2019
USD ($)
| |
Two Thousand Nineteen Acquisitions, Previously Leased [Member] | Corydon, IN [Member] | |
Real Estate Properties [Line Items] | |
Date Of Acquisition Of Property | Sep. 05, 2019 |
Contract Purchase Price | $ 14,082 |
Mortgage Loans Payable Related To Acquisition Of Properties | 14,114 |
Acquisition Fees | $ 215 |
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% |
2019 Acquisitions | |
Real Estate Properties [Line Items] | |
Ownership percentage | 67.70% |
Acquisition contract purchase price of land acquired | $ 3,056 |
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% |
2019 Acquisitions | North Carolina ALF Portfolio - Garner [Member] | |
Real Estate Properties [Line Items] | |
Type | Senior Housing |
Date Of Acquisition Of Property | Mar. 27, 2019 |
Contract Purchase Price | $ 15,000 |
Lines of Credit and Term Loans | 15,000 |
Acquisition Fees | $ 338 |
Ownership percentage | 100.00% |
Percentage of contract purchase price paid acquisition fee, in cash | 2.25% |
Identified Intangible Assets, Net - Summary of Identified Intangibles, Net (Detail) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019
USD ($)
Building
|
Dec. 31, 2018
USD ($)
|
|
Finite-Lived Intangible Assets [Line Items] | ||
Number of buildings subject to ground leases (in buildings) | Building | 16 | |
Amortized intangible assets | $ 36,354,000 | |
Identified intangible assets, net | $ 161,073,000 | $ 179,521,000 |
Weighted average remaining life | 9 years 7 months 6 days | 15 years 6 months 18 days |
Certificates Of Need [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | $ 93,932,000 | $ 88,590,000 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 30,787,000 | 30,787,000 |
Purchase Option Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unamortized intangible assets | 0 | 1,918,000 |
Purchase option asset utilized | 1,918,000 | |
In-Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 31,947,000 | $ 45,815,000 |
Weighted average remaining life | 9 years 3 months 18 days | 9 years 9 months 18 days |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 0 | $ 7,346,000 |
Weighted average remaining life | 53 years 7 months 6 days | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 2,541,000 | $ 2,653,000 |
Weighted average remaining life | 17 years | 18 years 9 months 18 days |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 1,584,000 | $ 2,059,000 |
Weighted average remaining life | 5 years | 5 years 2 months 12 days |
Internally Developed Technology and Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 282,000 | $ 353,000 |
Weighted average remaining life | 3 years | 3 years 9 months 18 days |
Other Assets, Net - Additional Information (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019
USD ($)
Campus
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2019
USD ($)
Campus
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Other Assets [Abstract] | |||||
Number of senior health campuses | Campus | 13 | 13 | |||
Number of Senior Health Campuses Owned by Joint Venture | Campus | 3 | 3 | |||
Amortization expense on deferred financing costs | $ 882 | $ 981 | $ 2,882 | $ 3,578 | |
Amortization expense on lease commissions | 281 | 197 | 823 | 534 | |
Amortization of deferred lease inducements | $ 88 | $ 88 | $ 264 | $ 263 | |
Unconsolidated Entity | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage in affiliate | 33.90% | 33.90% | 33.80% | ||
Due from unconsolidated entity | $ 3,048 | $ 3,048 | $ 2,507 |
Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss, net of noncontrolling interests, by component consisted of the following for the nine months ended September 30, 2019 and 2018:
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Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | The following is a summary of our historical and current estimated per share NAV:
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Mortgage Loans Payable, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Payable, Net | Mortgage loans payable, net consisted of the following as of September 30, 2019 and December 31, 2018:
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Schedule of Activity Related to Mortgage Loans Payable | The following table reflects the changes in the carrying amount of mortgage loans payable for the nine months ended September 30, 2019 and 2018:
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Principal Payments Due on Mortgage Loans Payable | As of September 30, 2019, the principal payments due on our mortgage loans payable for the three months ending December 31, 2019 and for each of the next four years ending December 31 and thereafter were as follows:
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Real Estate Investments, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments, Net | Our real estate investments, net consisted of the following as of September 30, 2019 and December 31, 2018:
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Summary Of Acquisitions | The following is a summary of our property acquisition for the nine months ended September 30, 2019:
___________
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Summary of Acquisitions of Previously Leased Real Estate Investments [Table Text Block] | The following is a summary of such acquisition for the nine months ended September 30, 2019, which is included in our integrated senior health campuses segment:
___________
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Schedule of Asset Acquisitions, by Acquisition | The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our acquisitions in 2019 based on their relative fair values:
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