Summarized Condensed Consolidating Information (Tables)

9 Months Ended

Sep. 30, 2016

Summarized Condensed Consolidating Information [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

SEPTEMBER 30, 2016

(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	$	—		$	434,803	$	335,485	$	38,833		$	—		$	809,121
Other real estate investments	—			—		13,595		—			—			13,595
Cash and cash equivalents	—			11,878		—		—			—			11,878
Accounts receivable	—			2,801		2,609		256			—			5,666
Prepaid expenses and other assets	—			1,752		3		—			—			1,755
Deferred financing costs, net	—			3,074		—		—			—			3,074
Investment in subsidiaries	372,648			392,158		—		—			(764,806		)	—
Intercompany	—			—		88,351		—			(88,351		)	—
Total assets	$	372,648		$	846,466	$	440,043	$	39,089		$	(853,157	)	$	845,089
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	255,028	$	—	$	—		$	—		$	255,028
Senior unsecured term loan, net	—			99,398		—		—			—			99,398
Unsecured revolving credit facility	—			103,000		—		—			—			103,000
Accounts payable and accrued liabilities	—			11,615		3,144		256			—			15,015
Dividends payable	9,873			—		—		—			—			9,873
Intercompany	—			4,777		—		83,574			(88,351		)	—
Total liabilities	9,873			473,818		3,144		83,830			(88,351		)	482,314
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 57,741,888 shares issued and outstanding as of September 30, 2016	577			—		—		—			—			577
Additional paid-in capital	519,204			347,340		374,660		(52,899		)	(669,101		)	519,204
Cumulative distributions in excess of earnings	(157,006		)	25,308		62,239		8,158			(95,705		)	(157,006		)
Total equity	362,775			372,648		436,899		(44,741		)	(764,806		)	362,775
Total liabilities and equity	$	372,648		$	846,466	$	440,043	$	39,089		$	(853,157	)	$	845,089

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
Unsecured revolving credit facility	—			45,000		—		—			—			45,000
Mortgage notes payable, net	—			—		—		94,676			—			94,676
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 Income Statements

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

(in thousands)

	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	10,063	$	11,368	$	2,748	$	—		$	24,179
Tenant reimbursements	—		875		1,091		123		—			2,089
Independent living facilities	—		—		766		—		—			766
Interest and other income	—		—		72		—		—			72
Total revenues	—		10,938		13,297		2,871		—			27,106
Expenses:
Depreciation and amortization	—		3,194		4,356		698		—			8,248
Interest expense	—		5,742		—		1		—			5,743
Property taxes	—		875		1,091		123		—			2,089
Independent living facilities	—		—		708		—		—			708
Acquisition costs	—		203		—		—		—			203
General and administrative	410		1,873		—		—		—			2,283
Total expenses	410		11,887		6,155		822		—			19,274
Income in Subsidiary	8,242		9,191		—		—		(17,433		)	—
Net income	$	7,832	$	8,242	$	7,142	$	2,049	$	(17,433	)	$	7,832

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands)

	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	1,778	$	11,275	$	2,725	$	—		$	15,778
Tenant reimbursements	—		91		1,112		117		—			1,320
Independent living facilities	—		—		626		—		—			626
Interest and other income	—		19		242		—		—			261
Total revenues	—		1,888		13,255		2,842		—			17,985
Expenses:
Depreciation and amortization	—		600		4,483		732		—			5,815
Interest expense	—		5,807		2		1,412		—			7,221
Property taxes	—		91		1,112		117		—			1,320
Independent living facilities	—		—		610		—		—			610
General and administrative	435		1,855		2		—		—			2,292
Total expenses	435		8,353		6,209		2,261		—			17,258
Income in Subsidiary	1,162		7,627		—		—		(8,789		)	—
Net income	$	727	$	1,162	$	7,046	$	581	$	(8,789	)	$	727

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

(in thousands)

	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	25,702	$	33,949	$	8,206	$	—		$	67,857
Tenant reimbursements	—		2,138		3,290		387		—			5,815
Independent living facilities	—		—		2,177		—		—			2,177
Interest and other income	—		—		587		—		—			587
Total revenues	—		27,840		40,003		8,593		—			76,436
Expenses:
Depreciation and amortization	—		8,118		13,197		2,118		—			23,433
Interest expense	—		16,548		—		822		—			17,370
Property taxes	—		2,138		3,290		387		—			5,815
Independent living facilities	—		—		1,926		—		—			1,926
Acquisition costs	—		203		—		—		—			203
General and administrative	1,281		5,377		49		17		—			6,724
Total expenses	1,281		32,384		18,462		3,344		—			55,471
Income in Subsidiary	22,246		26,790		—		—		(49,036		)	—
Net income	$	20,965	$	22,246	$	21,541	$	5,249	$	(49,036	)	$	20,965

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands)

	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	3,869	$	33,825	$	8,175	$	—		$	45,869
Tenant reimbursements	—		220		3,297		349		—			3,866
Independent living facilities	—		—		1,868		—		—			1,868
Interest and other income	—		19		697		—		—			716
Total revenues	—		4,108		39,687		8,524		—			52,319
Expenses:
Depreciation and amortization	—		1,308		13,546		2,239		—			17,093
Interest expense	—		14,872		18		4,221		—			19,111
Property taxes	—		220		3,297		349		—			3,866
Independent living facilities	—		—		1,778		—		—			1,778
General and administrative	744		4,572		97		27		—			5,440
Total expenses	744		20,972		18,736		6,836		—			47,288
Income in Subsidiary	5,775		22,639		—		—		(28,414		)	—
Net income	$	5,031	$	5,775	$	20,951	$	1,688	$	(28,414	)	$	5,031

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

(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	$	(73	)	$	8,332		$	33,993		$	7,261		$	—		$	49,513
Cash flows from investing activities:
Acquisitions of real estate	—			(185,284		)	—			—			—			(185,284		)
Improvements to real estate	—			(56		)	(202		)	—			—			(258		)
Purchases of equipment, furniture and fixtures	—			(70		)	(69		)	—			—			(139		)
Preferred equity investments	—			—			(4,531		)	—			—			(4,531		)
Escrow deposit for acquisition of real estate	—			(1,000		)	—			—			—			(1,000		)
Distribution from subsidiary	27,396			—			—			—			(27,396		)	—
Intercompany financing	(107,807		)	(58,570		)	—			—			166,377			—
Net cash used in investing activities	(80,411		)	(244,980		)	(4,802		)	—			138,981			(191,212		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	108,395			—			—			—			—			108,395
Proceeds from the issuance of senior unsecured term loan	—			100,000			—			—			—			100,000
Borrowings under unsecured revolving credit facility	—			150,000			—			—			—			150,000
Payments on unsecured revolving credit facility	—			(92,000		)	—			—			—			(92,000		)
Payments on the mortgage notes payable	—			—			—			(95,022		)	—			(95,022		)
Payments of deferred financing costs	—			(1,352		)	—			—			—			(1,352		)
Net-settle adjustment on restricted stock	(515		)	—			—			—			—			(515		)
Dividends paid on common stock	(27,396		)	—			—			—			—			(27,396		)
Distribution to Parent	—			(27,396		)	—			—			27,396			—
Intercompany financing	—			107,807			(29,191		)	87,761			(166,377		)	—
Net cash provided by (used in) financing activities	80,484			237,059			(29,191		)	(7,261		)	(138,981		)	142,110
Net increase in cash and cash equivalents	—			411			—			—			—			411
Cash and cash equivalents beginning of period	—			11,467			—			—			—			11,467
Cash and cash equivalents end of period	$	—		$	11,878		$	—		$	—		$	—		$	11,878

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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	$	(239	)	$	(7,997	)	$	33,181		$	4,090		$	—		$	29,035
Cash flows from investing activities:
Acquisition of real estate	—			(231,501		)	—			—			—			(231,501		)
Improvements to real estate	—			(20		)	(123		)	—			—			(143		)
Purchases of equipment, furniture and fixtures	—			(186		)	(70		)	—			—			(256		)
Net proceeds from sale of vacant land	—			—			30			—			—			30
Distribution from subsidiary	14,086			—			—			—			(14,086		)	—
Intercompany financing	(163,082		)	34,599			—			—			128,483			—
Net cash used in investing activities	(148,996		)	(197,108		)	(163		)	—			114,397			(231,870		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	163,466			—			—			—			—			163,466
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		)	(1,951		)	—			(2,509		)
Payments of deferred financing costs	—			(2,113		)	—			—			—			(2,113		)
Net-settle adjustment on restricted stock	(145		)	—			—			—			—			(145		)
Dividends paid on common stock	(14,086		)	—			—			—			—			(14,086		)
Distribution to Parent	—			(14,086		)	—			—			14,086			—
Intercompany financing	—			163,082			(32,460		)	(2,139		)	(128,483		)	—
Net cash provided by (used in) financing activities	149,235			191,883			(33,018		)	(4,090		)	(114,397		)	189,613
Net decrease in cash and cash equivalents	—			(13,222		)	—			—			—			(13,222		)
Cash and cash equivalents beginning of period	—			25,320			—			—			—			25,320
Cash and cash equivalents end of period	$	—		$	12,098		$	—		$	—		$	—		$	12,098