REAL ESTATE INVESTMENTS, NET

The following tables summarize the Company's investment in owned properties at December 31, 2016, and December 31, 2015 (dollars in thousands):



	December 31, 2016			December 31, 2015
Land	$	110,648		$	91,311
Buildings and improvements	875,567			627,453
Integral equipment, furniture and fixtures	64,120			54,388
Identified intangible assets	1,914			—
Real estate investments	1,052,249			773,152
Accumulated depreciation	(158,331		)	(127,538		)
Real estate investments, net	$	893,918		$	645,614

As of December 31, 2016, 93 of the Company’s 154 facilities were leased to subsidiaries of Ensign under the Ensign Master Leases which commenced on June 1, 2014. The obligations under the Ensign Master Leases are guaranteed by Ensign. A default by any subsidiary of Ensign with regard to any facility leased pursuant to an Ensign Master Lease will result in a default under all of the Ensign Master Leases. As of December 31, 2016, annualized revenues from the Ensign Master Leases were $56.5 million and are escalated annually by an amount equal to the product of (1) the lesser of the percentage change in the Consumer Price Index (“CPI”) (but not less than zero) or 2.5%, and (2) the prior year’s rent. In addition to rent, the subsidiaries of Ensign that are tenants under the Ensign Master Leases are solely responsible for the costs related to the leased properties (including property taxes, insurance, and maintenance and repair costs).

As of December 31, 2016, 16 of the Company’s 154 facilities were leased to affiliates of Pristine Senior Living, LLC ("Pristine") under a long-term, triple-net master lease (the “Pristine Master Lease”), which commenced on October 1, 2015. As of December 31, 2016, the annualized revenues from the Pristine Master Lease were $18.6 million and are escalated annually by an amount equal to the product of (1) the lesser of the percentage change in the CPI (but not less than zero) or 3.0%, and (2) the prior year’s rent. The Pristine Master Lease is guaranteed by Pristine and its sole principal.

As of December 31, 2016, 42 of the Company's 154 facilities were leased to various other operators under triple-net leases. All of these leases contain annual escalators based on CPI some of which are subject to a cap, or fixed rent escalators.

The Company's three remaining properties as of December 31, 2016 are the independent living facilities that the Company owns and operates.

The Company has only two identified intangible assets which relate to a below-market ground lease and three acquired operating leases. The ground lease has a remaining term of 81 years.

As of December 31, 2016, total future minimum rental revenues for the Company's tenants were (dollars in thousands):



Year	Amount
2017	$	106,628
2018	106,808
2019	104,903
2020	103,577
2021	103,577
Thereafter	889,367
	$	1,414,860

Recent Real Estate Acquisitions

The following recent real estate acquisitions were accounted for as asset acquisitions:

New Haven Assisted Living of San Angelo, LLC

In February 2016, the Company acquired New Haven of San Angelo, a 30-unit assisted living and memory care facility located in San Angelo, Texas, for $4.9 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company entered into a triple-net master lease with New Haven Assisted Living of San Angelo, LLC. The lease carries an initial term of 12.5 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent is $0.4 million under the lease.

Trillium Healthcare Group, LLC

In February 2016, the Company acquired a nine facility 518-bed skilled nursing portfolio in Iowa for $32.7 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company amended its existing triple-net master lease with certain wholly owned subsidiaries of Trillium Healthcare Group, LLC. The amended lease carries a remaining term of 15 years with two five-year renewal options and CPI-based rent escalators. The base rent under the amended master lease increased by $3.2 million per year following this acquisition. Additionally, in March 2016, the Company acquired Cedar Falls Health Care Center, an 82-bed skilled nursing facility located in Cedar Falls, Iowa, for $5.0 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company further amended the triple-net master lease. Annual cash rent increases by $0.5 million under the amended lease.

Priority Life Care, LLC

In March 2016, the Company acquired three assisted living facilities consisting of 336 units located in Baltimore, Maryland, Fort Wayne, Indiana and West Allis, Wisconsin, for $21.2 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company entered into a triple-net master lease with certain wholly owned subsidiaries of Priority Life Care, LLC. The lease carries an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent is $1.8 million under the lease.

Better Senior Living Consulting, LLC

In March 2016, the Company acquired Lamplight Inn of Fort Myers, a 74-unit assisted living facility located in Fort Myers, Florida, for $5.7 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company amended its triple-net master lease with certain wholly owned subsidiaries of Better Senior Living Consulting, LLC. The amended lease carries a remaining term of 14 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent increases by $0.5 million under the amended lease.

Pristine Senior Living, LLC

In April 2016, the Company acquired Victory Park Nursing Home, a 55-bed skilled nursing facility, and Victoria Retirement Community, a skilled nursing and assisted living campus with 90 skilled nursing beds and 69 assisted living beds, both located in Cincinnati, Ohio, for $14.7 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company amended the Pristine Master Lease. Annual cash rent increases by $1.4 million under the amended lease.

Cascadia Healthcare, LLC

In May 2016, the Company acquired Shaw Mountain at Cascadia, a 98-bed skilled nursing facility located in Boise, Idaho, for $8.9 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company entered into a triple-net master lease with a wholly owned subsidiary of Cascadia Healthcare, LLC. The lease carries an initial term of 15 years with three five-year renewal options and CPI-based rent escalators. Annual cash rent is $0.9 million under the lease.

Twenty/20 Management, Inc.

In May 2016, the Company acquired English Meadows Elks' Home, a 175-unit independent and assisted living campus located in Bedford, Virginia, for $10.1 million which includes capitalized acquisition costs. In connection with the acquisition, the Company amended its triple-net master lease with an affiliate of Twenty/20 Management, Inc. Annual cash rent increases by $0.9 million under the amended lease.

Premier Senior Living, LLC

In May 2016, the Company acquired Croatan Village, a 46-unit assisted living and memory care facility located in New Bern, North Carolina, and Countryside Village, a 21-unit memory care facility located in Pikeville, North Carolina, for $11.8 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company entered into a triple-net master lease with certain wholly owned subsidiaries of Premier Senior Living, LLC. The lease carries an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. The Company anticipates initial annual lease revenues of $1.0 million following this acquisition. Additionally, in June 2016, the Company acquired a four facility 188-bed assisted living and memory care portfolio located in Michigan for $30.7 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company amended the master lease. Annual cash rent increases by $2.5 million under the amended lease.

West Harbor Healthcare, LLC

In August 2016, the Company acquired The Oaks at Petaluma, a 59-bed skilled nursing facility located in Petaluma, California, for $6.8 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company entered into a triple-net master lease with an affiliate of West Harbor Healthcare, LLC. The lease carries an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent is $0.7 million under the lease.

Priority Management Group, LLC

In December 2016, the Company acquired three skilled nursing facilities and one skilled nursing campus in the greater Dallas-Fort Worth area for $95.9 million, which includes capitalized acquisition costs. In connection with the acquisition, the Company entered into a triple-net master lease with affiliates of Priority Management Group, LLC. The lease carries an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. Annual cash rent is $8.6 million under the lease.

The following recent real estate acquisitions were accounted for as business combinations:

Covenant Care, LLC

In August 2016, the Company acquired one skilled nursing, one skilled nursing campus and one assisted living property located in California, for $34.3 million. For the three separate transactions, approximately $0.2 million of transaction costs were expensed. The three properties are triple-net leased to affiliates of Covenant Care, LLC under three leases. Contractual annual cash revenues are $3.1 million following these acquisitions. The leases expire in 2019 and have two five-year renewal options, and have CPI-based rent escalators (with a 3% floor).