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Summarized Condensed Consolidating Information (Tables)
6 Months Ended
Jun. 30, 2017
Summarized Condensed Consolidating Information [Abstract]  
Condensed Consolidating Balance Sheets
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