Summarized Condensed Consolidating Information (Tables)

6 Months Ended

Jun. 30, 2017

Summarized Condensed Consolidating Information [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

JUNE 30, 2017

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	617,036	$	355,796	$	—		$	972,832
Other real estate investments	—			—		5,192		—			5,192
Cash and cash equivalents	—			35,066		—		—			35,066
Accounts and other receivables	—			7,470		1,955		—			9,425
Prepaid expenses and other assets	—			5,280		2		—			5,282
Deferred financing costs, net	—			2,260		—		—			2,260
Investment in subsidiaries	622,024			424,123		—		(1,046,147		)	—
Intercompany	—			—		63,365		(63,365		)	—
Total assets	$	622,024		$	1,091,235	$	426,310	$	(1,109,512	)	$	1,030,057
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	294,043	$	—	$	—		$	294,043
Senior unsecured term loan, net	—			99,469		—		—			99,469
Unsecured revolving credit facility	—			—		—		—			—
Accounts payable and accrued liabilities	—			12,334		2,187		—			14,521
Dividends payable	14,048			—		—		—			14,048
Intercompany	—			63,365		—		(63,365		)	—
Total liabilities	14,048			469,211		2,187		(63,365		)	422,081
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 75,466,982 issued and outstanding as of June 30, 2017	755			—		—		—			755
Additional paid-in capital	782,073			574,384		321,761		(896,145		)	782,073
Cumulative distributions in excess of earnings	(174,852		)	47,640		102,362		(150,002		)	(174,852		)
Total equity	607,976			622,024		424,123		(1,046,147		)	607,976
Total liabilities and equity	$	622,024		$	1,091,235	$	426,310	$	(1,109,512	)	$	1,030,057

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2016

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	527,639	$	366,279	$	—		$	893,918
Other real estate investments	—			—		13,872		—			13,872
Cash and cash equivalents	—			7,500		—		—			7,500
Accounts and other receivables	—			3,743		2,153		—			5,896
Prepaid expenses and other assets	—			1,366		3		—			1,369
Deferred financing costs, net	—			2,803		—		—			2,803
Investment in subsidiaries	463,505			401,328		—		(864,833		)	—
Intercompany	—			—		21,445		(21,445		)	—
Total assets	$	463,505		$	944,379	$	403,752	$	(886,278	)	$	925,358
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	255,294	$	—	$	—		$	255,294
Unsecured revolving credit facility	—			95,000		—		—			95,000
Senior unsecured term loan, net	—			99,422		—		—			99,422
Accounts payable and accrued liabilities	—			9,713		2,424		—			12,137
Dividends payable	11,075			—		—		—			11,075
Intercompany	—			21,445		—		(21,445		)	—
Total liabilities	11,075			480,874		2,424		(21,445		)	472,928
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 64,816,350 shares issued and outstanding as of December 31, 2016	648			—		—		—			648
Additional paid-in capital	611,475			429,453		321,761		(751,214		)	611,475
Cumulative distributions in excess of earnings	(159,693		)	34,052		79,567		(113,619		)	(159,693		)
Total equity	452,430			463,505		401,328		(864,833		)	452,430
Total liabilities and equity	$	463,505		$	944,379	$	403,752	$	(886,278	)	$	925,358

Condensed Consolidating Income Statements

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2017

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	14,294	$	14,217	$	—		$	28,511
Tenant reimbursements	—		1,158		1,231		—			2,389
Independent living facilities	—		—		789		—			789
Interest and other income	—		—		1,140		—			1,140
Total revenues	—		15,452		17,377		—			32,829
Expenses:
Depreciation and amortization	—		4,529		4,806		—			9,335
Interest expense	—		6,219		—		—			6,219
Loss on the extinguishment of debt	—		11,883		—		—			11,883
Property taxes	—		1,158		1,231		—			2,389
Independent living facilities	—		—		644		—			644
Impairment of real estate investment	—		—		890		—			890
General and administrative	728		2,187		62		—			2,977
Total expenses	728		25,976		7,633		—			34,337
Gain on disposition of other real estate investment	—		—		3,538		—			3,538
Income in Subsidiary	2,758		13,282		—		(16,040		)	—
Net income	$	2,030	$	2,758	$	13,282	$	(16,040	)	$	2,030

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2016

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	8,742	$	14,039	$	—		$	22,781
Tenant reimbursements	—		697		1,232		—			1,929
Independent living facilities	—		—		730		—			730
Interest and other income	—		—		261		—			261
Total revenues	—		9,439		16,262		—			25,701
Expenses:
Depreciation and amortization	—		2,778		5,114		—			7,892
Interest expense	—		5,434		6		—			5,440
Property taxes	—		697		1,232		—			1,929
Independent living facilities	—		—		598		—			598
General and administrative	438		1,773		—		—			2,211
Total expenses	438		10,682		6,950		—			18,070
Income in Subsidiary	8,069		9,312		—		(17,381		)	—
Net income	$	7,631	$	8,069	$	9,312	$	(17,381	)	$	7,631

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2017

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	27,517	$	28,333	$	—		$	55,850
Tenant reimbursements	—		2,236		2,474		—			4,710
Independent living facilities	—		—		1,582		—			1,582
Interest and other income	—		—		1,295		—			1,295
Total revenues	—		29,753		33,684		—			63,437
Expenses:
Depreciation and amortization	—		8,715		9,696		—			18,411
Interest expense	—		12,098		—		—			12,098
Loss on the extinguishment of debt	—		11,883		—		—			11,883
Property taxes	—		2,236		2,474		—			4,710
Independent living facilities	—		—		1,305		—			1,305
Impairment of real estate investment	—		—		890		—			890
General and administrative	1,277		4,028		62		—			5,367
Total expenses	1,277		38,960		14,427		—			54,664
Gain on disposition of other real estate investment	—		—		3,538		—			3,538
Income in Subsidiary	13,588		22,795		—		(36,383		)	—
Net income	$	12,311	$	13,588	$	22,795	$	(36,383	)	$	12,311

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2016

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	15,639	$	28,039	$	—		$	43,678
Tenant reimbursements	—		1,263		2,463		—			3,726
Independent living facilities	—		—		1,411		—			1,411
Interest and other income	—		—		515		—			515
Total revenues	—		16,902		32,428		—			49,330
Expenses:
Depreciation and amortization	—		4,924		10,261		—			15,185
Interest expense	—		10,806		495		—			11,301
Loss on extinguishment of debt	—		—		326		—			326
Property taxes	—		1,263		2,463		—			3,726
Independent living facilities	—		—		1,218		—			1,218
General and administrative	871		3,504		66		—			4,441
Total expenses	871		20,497		14,829		—			36,197
Income in Subsidiary	14,004		17,599		—		(31,603		)	—
Net income	$	13,133	$	14,004	$	17,599	$	(31,603	)	$	13,133

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2017

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(141	)	$	10,517		$	34,525		$	—		$	44,901
Cash flows from investing activities:
Acquisitions of real estate	—			(96,641		)	—			—			(96,641		)
Improvements to real estate	—			(556		)	(42		)	—			(598		)
Purchases of equipment, furniture and fixtures	—			(169		)	(64		)	—			(233		)
Escrow deposit for acquisition of real estate	—			(4,335		)	—			—			(4,335		)
Sale of other real estate investment	—			—			7,500			—			7,500
Distribution from subsidiary	24,497			—			—			(24,497		)	—
Intercompany financing	(169,478		)	41,919			—			127,559			—
Net cash (used in) provided by investing activities	(144,981		)	(59,782		)	7,394			103,062			(94,307		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	170,485			—			—			—			170,485
Proceeds from the issuance of senior unsecured notes payable	—			300,000			—			—			300,000
Borrowings under unsecured revolving credit facility	—			63,000			—			—			63,000
Payments on senior unsecured notes payable	—			(267,639		)	—			—			(267,639		)
Payments on unsecured revolving credit facility	—			(158,000		)	—			—			(158,000		)
Payments of deferred financing costs	—			(5,511		)	—			—			(5,511		)
Net-settle adjustment on restricted stock	(866		)	—			—			—			(866		)
Dividends paid on common stock	(24,497		)	—			—			—			(24,497		)
Distribution to Parent	—			(24,497		)	—			24,497			—
Intercompany financing	—			169,478			(41,919		)	(127,559		)	—
Net cash provided by (used in) financing activities	145,122			76,831			(41,919		)	(103,062		)	76,972
Net increase in cash and cash equivalents	—			27,566			—			—			27,566
Cash and cash equivalents beginning of period	—			7,500			—			—			7,500
Cash and cash equivalents end of period	$	—		$	35,066		$	—		$	—		$	35,066

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2016

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Elimination			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	466		$	396		$	27,251		$	—		$	28,113
Cash flows from investing activities:
Acquisitions of real estate	—			(144,149		)	—			—			(144,149		)
Improvements to real estate	—			(56		)	(114		)	—			(170		)
Purchases of equipment, furniture and fixtures	—			(31		)	(58		)	—			(89		)
Distribution from subsidiary	17,548			—			—			(17,548		)	—
Intercompany financing	(105,840		)	(67,943		)	—			173,783			—
Net cash used in investing activities	(88,292		)	(212,179		)	(172		)	156,235			(144,408		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	105,889			—			—			—			105,889
Proceeds from the issuance of senior unsecured term loan	—			100,000			—			—			100,000
Borrowings under unsecured revolving credit facility	—			115,000			—			—			115,000
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	—			(1,332		)	—			—			(1,332		)
Net-settle adjustment on restricted stock	(515		)	—			—			—			(515		)
Dividends paid on common stock	(17,548		)	—			—			—			(17,548		)
Distribution to Parent	—			(17,548		)	—			17,548			—
Intercompany financing	—			105,840			67,943			(173,783		)	—
Net cash provided by (used in) financing activities	87,826			209,960			(27,079		)	(156,235		)	114,472
Net decrease in cash and cash equivalents	—			(1,823		)	—			—			(1,823		)
Cash and cash equivalents beginning of period	—			11,467			—			—			11,467
Cash and cash equivalents end of period	$	—		$	9,644		$	—		$	—		$	9,644