Summarized Condensed Consolidating and Combining Information (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

MARCH 31, 2015

(in thousands, except share and per share amounts)

	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	43,880		$	361,808	$	43,153		$	—		$	448,841
Other real estate investments		—			—			7,755		—			—			7,755
Cash and cash equivalents		—			13,594			—		—			—			13,594
Accounts receivable		—			57			1,718		236			—			2,011
Prepaid expenses and other assets		—			709			4		—			—			713
Deferred financing costs, net		—			9,338			—		534			—			9,872
Investment in subsidiaries		115,866			342,563			—		—			(458,429	)		—
Intercompany		—			—			25,622		2,045			(27,667	)		—
Total assets	$	115,866		$	410,141		$	396,907	$	45,968		$	(486,096	)	$	482,786
Liabilities and Equity:
Senior unsecured notes payable	$	—		$	260,000		$	—	$	—		$	—		$	260,000
Mortgage notes payable		—			—			533		96,987			—			97,520
Accounts payable and accrued liabilities		—			6,608			2,096		696			—			9,400
Dividends payable		5,050			—			—		—			—			5,050
Intercompany		—			27,667			—		—			(27,667	)		—
Total liabilities		5,050			294,275			2,629		97,683			(27,667	)		371,970
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 31,341,277 shares issued and outstanding as of March 31, 2015		314			—			—		—			—			314
Additional paid-in capital		246,406			121,971			374,660		(52,899	)		(443,732	)		246,406
Cumulative distributions in excess of earnings		(135,904	)		(6,105	)		19,618		1,184			(14,697	)		(135,904	)
Total equity		110,816			115,866			394,278		(51,715	)		(458,429	)		110,816
Total liabilities and equity	$	115,866		$	410,141		$	396,907	$	45,968		$	(486,096	)	$	482,786

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2014

(in thousands, except share and per share amounts)

	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	26,104		$	366,199	$	43,912		$	—		$	436,215
Other real estate investments		—			—			7,532		—			—			7,532
Cash and cash equivalents		—			25,320			—		—			—			25,320
Accounts receivable		—			—			2,170		121			—			2,291
Prepaid expenses and other assets		—			808			1		—			—			809
Deferred financing costs, net		—			9,808			—		597			—			10,405
Investment in subsidiaries		117,408			335,020			—		—			(452,428	)		—
Intercompany		—			—			15,262		1,323			(16,585	)		—
Total assets	$	117,408		$	397,060		$	391,164	$	45,953		$	(469,013	)	$	482,572
Liabilities and Equity:
Senior unsecured notes payable	$	—		$	260,000		$	—	$	—		$	—		$	260,000
Mortgage notes payable		—			—			557		97,648			—			98,205
Accounts payable and accrued liabilities		—			3,067			3,308		584			—			6,959
Dividends payable		3,946			—			—		—			—			3,946
Intercompany		—			16,585			—		—			(16,585	)		—
Total liabilities		3,946			279,652			3,865		98,232			(16,585	)		369,110
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 31,251,157 shares issued and outstanding as of December 31, 2014		313			—			—		—			—			313
Additional paid-in capital		246,041			125,551			374,660		(52,899	)		(447,312	)		246,041
Cumulative distributions in excess of earnings		(132,892	)		(8,143	)		12,639		620			(5,116	)		(132,892	)
Total equity		113,462			117,408			387,299		(52,279	)		(452,428	)		113,462
Total liabilities and equity	$	117,408		$	397,060		$	391,164	$	45,953		$	(469,013	)	$	482,572

Condensed Consolidating and Combining Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(in thousands)

	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	842	$	11,275	$	2,725	$	—		$	14,842
Tenant reimbursement		—		52		1,090		116		—			1,258
Independent living facilities		—		—		635		—		—			635
Interest and other income		—		—		223		—		—			223
Total revenues		—		894		13,223		2,841		—			16,958
Expenses:
Depreciation and amortization		—		295		4,544		760		—			5,599
Interest expense		—		4,492		8		1,401		—			5,901
Property taxes		—		52		1,090		116		—			1,258
Independent living facilities		—		—		602		—		—			602
General and administrative		—		1,560		—		—		—			1,560
Total expenses		—		6,399		6,244		2,277		—			14,920
Income in Subsidiary		2,038		7,543		—		—		(9,581	)		—
Net income	$	2,038	$	2,038	$	6,979	$	564	$	(9,581	)	$	2,038

CONDENSED COMBINING STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2014

(in thousands)

	Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Combined
Revenues:
Rental income	$	9,535		$	1,488		$	11,023
Tenant reimbursement		1,134			128			1,262
Independent living facilities		587			—			587
Total revenues		11,256			1,616			12,872
Expenses:
Depreciation and amortization		5,271			928			6,199
Interest expense		2,416			911			3,327
Property taxes		1,134			128			1,262
Independent living facilities		543			—			543
General and administrative		1,904			—			1,904
Total expenses		11,268			1,967			13,235
Income (loss) before provision for income taxes		(12	)		(351	)		(363	)
Provision for income taxes		31			6			37
Net income (loss)		(43	)		(357	)		(400	)
Other comprehensive income:
Unrealized gain on interest rate swap		197			—			197
Comprehensive income (loss)	$	154		$	(357	)	$	(203	)

Condensed Consolidating and Combining Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(in thousands)

	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	—		$	(824	)	$	10,496		$	1,383		$	—		$	11,055
Cash flows from investing activities:
Acquisition of real estate		—			(17,499	)		—			—			—			(17,499	)
Improvements to real estate		—			(19	)		(55	)		—			—			(74	)
Purchases of equipment, furniture, and fixtures		—			(7	)		(56	)		—			—			(63	)
Escrow deposit for acquisition of real estate		—			(500	)		—			—			—			(500	)
Distribution from subsidiary		3,946			—			—			—			(3,946	)		—
Intercompany financing		—			11,083			—			—			(11,083	)		—
Net cash provided by (used in) investing activities		3,946			(6,942	)		(111	)		—			(15,029	)		(18,136	)
Cash flows from financing activities:
Payments on the mortgage notes payable		—			—			(25	)		(660	)		—			(685	)
Payments of deferred financing costs		—			(14	)		—			—			—			(14	)
Dividends paid on common stock		(3,946	)		—			—			—			—			(3,946	)
Distribution to Parent		—			(3,946	)		—			—			3,946			—
Intercompany financing		—			—			(10,360	)		(723	)		11,083			—
Net cash used in financing activities		(3,946	)		(3,960	)		(10,385	)		(1,383	)		15,029			(4,645	)
Net decrease in cash and cash equivalents		—			(11,726	)		—			—			—			(11,726	)
Cash and cash equivalents beginning of period		—			25,320			—			—			—			25,320
Cash and cash equivalents end of period of period	$	—		$	13,594		$	—		$	—		$	—		$	13,594

CONDENSED COMBINING STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2014

	Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Combined
Cash flows from operating activities:
Net cash provided by operating activities	$	4,051		$	266		$	4,317
Cash flows from investing activities:
Purchases of equipment, furniture, and fixtures		(9,664	)		(3,011	)		(12,675	)
Net cash used in investing activities		(9,664	)		(3,011	)		(12,675	)
Cash flows from financing activities:
Payments on the mortgage notes payable		(1,521	)		(328	)		(1,849	)
Net contribution from Ensign		7,166			3,073			10,239
Net cash provided by financing activities		5,645			2,745			8,390
Net increase in cash and cash equivalents		32			—			32
Cash and cash equivalents, beginning of period		895			—			895
Cash and cash equivalents, end of period	$	927		$	—		$	927