Summarized Condensed Consolidating and Combining Information (Tables)

12 Months Ended

Dec. 31, 2015

Summarized Condensed Consolidating And Combining Information [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 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	$	—		$	256,209	$	348,454	$	40,951		$	—		$	645,614
Other real estate investments	—			—		8,477		—			—			8,477
Cash and cash equivalents	—			11,467		—		—			—			11,467
Accounts receivable	—			519		1,695		128			—			2,342
Prepaid expenses and other assets	—			2,079		4		—			—			2,083
Deferred financing costs, net	—			3,183		—		—			—			3,183
Investment in subsidiaries	269,992			365,368		—		—			(635,360		)	—
Intercompany	—			—		59,160		4,186			(63,346		)	—
Total assets	$	269,992		$	638,825	$	417,790	$	45,265		$	(698,706	)	$	673,166
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	254,229	$	—	$	—		$	—		$	254,229
Mortgage notes payable, net	—			—		—		94,676			—			94,676
Unsecured revolving credit facility	—			45,000		—		—			—			45,000
Accounts payable and accrued liabilities	—			6,258		2,433		578			—			9,269
Dividends payable	7,704			—		—		—			—			7,704
Intercompany	—			63,346		—		—			(63,346		)	—
Total liabilities	7,704			368,833		2,433		95,254			(63,346		)	410,878
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 47,664,742 shares issued and outstanding as of December 31, 2015	477			—		—		—			—			477
Additional paid-in capital	410,217			266,929		374,660		(52,899		)	(588,690		)	410,217
Cumulative distributions in excess of earnings	(148,406		)	3,063		40,697		2,910			(46,670		)	(148,406		)
Total equity	262,288			269,992		415,357		(49,989		)	(635,360		)	262,288
Total liabilities and equity	$	269,992		$	638,825	$	417,790	$	45,265		$	(698,706	)	$	673,166

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	—			2,973			—		—			—			2,973
Investment in subsidiaries	117,408			335,020			—		—			(452,428		)	—
Intercompany	—			—			15,262		1,323			(16,585		)	—
Total assets	$	117,408		$	390,225		$	391,164	$	45,356		$	(469,013	)	$	475,140
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	253,165		$	—	$	—		$	—		$	253,165
Mortgage notes payable, net	—			—			557		97,051			—			97,608
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			272,817			3,865		97,635			(16,585		)	361,678
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		$	390,225		$	391,164	$	45,356		$	(469,013	)	$	475,140

Condensed Consolidating and Combining Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	9,979	$	45,100	$	10,900	$	—		$	65,979
Tenant reimbursements	—		655		4,375		467		—			5,497
Independent living facilities	—		—		2,510		—		—			2,510
Interest and other income	—		19		946		—		—			965
Total revenues	—		10,653		52,931		11,367		—			74,951
Expenses:
Depreciation and amortization	—		3,165		18,007		2,961		—			24,133
Interest expense	—		19,616		18		5,622		—			25,256
Property taxes	—		655		4,375		467		—			5,497
Independent living facilities	—		—		2,376		—		—			2,376
General and administrative	1,171		6,360		97		27		—			7,655
Total expenses	1,171		29,796		24,873		9,077		—			64,917
Income in Subsidiary	11,205		30,348		—		—		(41,553		)	—
Net income	$	10,034	$	11,205	$	28,058	$	2,290	$	(41,553	)	$	10,034

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2014

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	139		$	42,337	$	8,891	$	—		$	51,367
Tenant reimbursements	—			11			4,460		485		—			4,956
Independent living facilities	—			—			2,519		—		—			2,519
Interest and other income	—			23			32		—		—			55
Total revenues	—			173			49,348		9,376		—			58,897
Expenses:
Depreciation and amortization	—			34			19,577		3,389		—			23,000
Interest expense	—			10,425			6,315		4,882		—			21,622
Loss on extinguishment of debt	—			—			4,067		—		—			4,067
Property taxes	—			11			4,460		485		—			4,956
Acquisition costs	—			—			47		—		—			47
Independent living facilities	—			—			2,243		—		—			2,243
General and administrative	—			11,105			—		—		—			11,105
Total expenses	—			21,575			36,709		8,756		—			67,040
(Loss) income in Subsidiary	(8,143		)	13,259			—		—		(5,116		)	—
Net (loss) income	(8,143		)	(8,143		)	12,639		620		(5,116		)	(8,143		)
Other comprehensive income:
Unrealized gain on interest rate swap	—			—			167		—		—			167
Reclassification adjustment on interest rate swap	—			—			1,661		—		—			1,661
Comprehensive (loss) income	$	(8,143	)	$	(8,143	)	$	14,467	$	620	$	(5,116	)	$	(6,315	)

CONDENSED COMBINING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2013

(in thousands)



	Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Combined
Revenues:
Rental income	$	35,730	$	5,512		$	41,242
Tenant reimbursements	4,602		566			5,168
Independent living facilities	2,386		—			2,386
Total revenues	42,718		6,078			48,796
Expenses:
Depreciation and amortization	20,031		3,387			23,418
Interest expense	8,898		3,749			12,647
Property taxes	4,602		566			5,168
Acquisition costs	255		—			255
Independent living facilities	2,007		131			2,138
General and administrative	5,442		—			5,442
Total expenses	41,235		7,833			49,068
Income (loss) before provision for income taxes	1,483		(1,755		)	(272		)
Provision for income taxes	109		14			123
Net income (loss)	1,374		(1,769		)	(395		)
Other comprehensive income:
Unrealized gain on interest rate swap	1,038		—			1,038
Comprehensive income (loss)	$	2,412	$	(1,769	)	$	643

Condensed Consolidating and Combining Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	(15	)	$	(9,894	)	$	44,675		$	5,488		$	—		$	40,254
Cash flows from investing activities:
Acquisition of real estate	—			(232,466		)	—			—			—			(232,466		)
Improvements to real estate	—			(19		)	(168		)	—			—			(187		)
Purchases of equipment, furniture, and fixtures	—			(195		)	(81		)	—			—			(276		)
Escrow deposits for acquisition of real estate	—			(1,750		)	—			—			—			(1,750		)
Net proceeds from sale of vacant land	—			—			30			—			—			30
Distribution from subsidiary	21,790			—			—			—			(21,790		)	—
Intercompany financing	(162,803		)	46,761			—			—			116,042			—
Net cash used in investing activities	(141,013		)	(187,669		)	(219		)	—			94,252			(234,649		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	162,963			—			—			—			—			162,963
Borrowings under unsecured revolving credit facility	—			45,000			—			—			—			45,000
Borrowings under senior secured revolving credit facility	—			35,000			—			—			—			35,000
Repayments of borrowings under senior secured revolving credit facility	—			(35,000		)	—			—			—			(35,000		)
Payments on the mortgage notes payable	—			—			(558		)	(2,625		)	—			(3,183		)
Net-settle adjustment on restricted stock	(145		)	—			—			—			—			(145		)
Payments of deferred financing costs	—			(2,303		)	—			—			—			(2,303		)
Dividends paid on common stock	(21,790		)	—			—			—			—			(21,790		)
Distribution to Parent	—			(21,790		)	—			—			21,790			—
Intercompany financing	—			162,803			(43,898		)	(2,863		)	(116,042		)	—
Net cash provided by (used in) financing activities	141,028			183,710			(44,456		)	(5,488		)	(94,252		)	180,542
Net decrease in cash and cash equivalents	—			(13,853		)	—			—			—			(13,853		)
Cash and cash equivalents, beginning of period	—			25,320			—			—			—			25,320
Cash and cash equivalents, end of period of period	$	—		$	11,467		$	—		$	—		$	—		$	11,467

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2014

(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	$	—		$	(21,185	)	$	38,955		$	4,136		$	—		$	21,906
Cash flows from investing activities:
Acquisition of real estate	—			(25,742		)	—			—			—			(25,742		)
Improvements to real estate	—			—			(579		)	—			—			(579		)
Purchases of equipment, furniture and fixtures	—			(95		)	(14,819		)	(4,361		)	—			(19,275		)
Preferred equity investment	—			—			(7,500		)	—			—			(7,500		)
Escrow deposit for acquisition of real estate	—			(500		)	—			—			—			(500		)
Distribution from subsidiary	33,001			—			—			—			(33,001		)	—
Intercompany financing	—			(141,231		)	—			—			141,231			—
Net cash provided by (used in) investing activities	33,001			(167,568		)	(22,898		)	(4,361		)	108,230			(53,596		)
Cash flows from financing activities:
Proceeds from the issuance of senior unsecured notes payable	—			260,000			—			—			—			260,000
Proceeds from the senior secured revolving credit facility	—			—			10,000			—			—			10,000
Proceeds from the issuance of mortgage notes payable	—			—			—			50,676			—			50,676
Payments on the senior secured revolving credit facility	—			—			(88,701		)	—			—			(88,701		)
Payments on the mortgage notes payable	—			—			(66,905		)	(1,250		)	—			(68,155		)
Payments on the senior secured term loan	—			—			(65,624		)	—			—			(65,624		)
Payments of deferred financing costs	—			(12,926		)	—			(510		)	—			(13,436		)
Net contribution from Ensign	—			—			52,385			(48,029		)	—			4,356
Dividends paid on common stock	(33,001		)	—			—			—			—			(33,001		)
Distribution to Parent	—			(33,001		)	—			—			33,001			—
Intercompany financing	—			—			141,893			(662		)	(141,231		)	—
Net cash (used in) provided by financing activities	(33,001		)	214,073			(16,952		)	225			(108,230		)	56,115
Net increase (decrease) in cash and cash equivalents	—			25,320			(895		)	—			—			24,425
Cash and cash equivalents, beginning of period	—			—			895			—			—			895
Cash and cash equivalents, end of period	$	—		$	25,320		$	—		$	—		$	—		$	25,320

CONDENSED COMBINING STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2013

(in thousands)



	Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Combined
Cash flows from operating activities:
Net cash provided by operating activities	$	24,793		$	1,839		$	26,632
Cash flows from investing activities:
Acquisition of real estate	(35,656		)	—			(35,656		)
Purchases of equipment, furniture and fixtures	(15,728		)	(4,203		)	(19,931		)
Cash proceeds from the sale of equipment, furniture and fixtures	854			—			854
Net cash used in investing activities	(50,530		)	(4,203		)	(54,733		)
Cash flows from financing activities:
Proceeds from the senior secured revolving credit facility	58,700			—			58,700
Payments on the mortgage notes payable	(2,249		)	(1,208		)	(3,457		)
Payments on the senior secured term loan	(3,750		)	—			(3,750		)
Payments of deferred financing costs	(730		)	—			(730		)
Net (distribution to) contribution from Ensign	(26,074		)	3,572			(22,502		)
Net cash provided by financing activities	25,897			2,364			28,261
Net increase in cash and cash equivalents	160			—			160
Cash and cash equivalents, beginning of period	735			—			735
Cash and cash equivalents, end of period	$	895		$	—		$	895