Summarized Condensed Consolidating Information (Tables)

9 Months Ended

Sep. 30, 2017

Summarized Condensed Consolidating Information [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

SEPTEMBER 30, 2017

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	738,013	$	351,076	$	—		$	1,089,089
Other real estate investments	—			—		5,368		—			5,368
Cash and cash equivalents	—			14,808		—		—			14,808
Accounts and other receivables	—			10,114		2,847		—			12,961
Prepaid expenses and other assets	—			1,801		2		—			1,803
Deferred financing costs, net	—			1,989		—		—			1,989
Investment in subsidiaries	619,922			434,113		—		(1,054,035		)	—
Intercompany	—			—		77,972		(77,972		)	—
Total assets	$	619,922		$	1,200,838	$	437,265	$	(1,132,007	)	$	1,126,018
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	294,221	$	—	$	—		$	294,221
Senior unsecured term loan, net	—			99,493		—		—			99,493
Unsecured revolving credit facility	—			95,000		—		—			95,000
Accounts payable and accrued liabilities	—			14,230		3,152		—			17,382
Dividends payable	14,046			—		—		—			14,046
Intercompany	—			77,972		—		(77,972		)	—
Total liabilities	14,046			580,916		3,152		(77,972		)	520,142
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 75,472,682 shares issued and outstanding as of September 30, 2017	755			—		—		—			755
Additional paid-in capital	782,707			560,299		321,761		(882,060		)	782,707
Cumulative distributions in excess of earnings	(177,586		)	59,623		112,352		(171,975		)	(177,586		)
Total equity	605,876			619,922		434,113		(1,054,035		)	605,876
Total liabilities and equity	$	619,922		$	1,200,838	$	437,265	$	(1,132,007	)	$	1,126,018

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
Senior unsecured term loan, net	—			99,422		—		—			99,422
Unsecured revolving credit facility	—			95,000		—		—			95,000
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 SEPTEMBER 30, 2017

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	14,987	$	14,417	$	—		$	29,404
Tenant reimbursements	—		1,341		1,202		—			2,543
Independent living facilities	—		—		825		—			825
Interest and other income	—		—		176		—			176
Total revenues	—		16,328		16,620		—			32,948
Expenses:
Depreciation and amortization	—		5,014		4,731		—			9,745
Interest expense	—		5,592		—		—			5,592
Property taxes	—		1,341		1,202		—			2,543
Independent living facilities	—		—		698		—			698
General and administrative	671		2,388		—		—			3,059
Total expenses	671		14,335		6,631		—			21,637
Income in Subsidiary	11,982		9,989		—		(21,971		)	—
Net income	$	11,311	$	11,982	$	9,989	$	(21,971	)	$	11,311

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	10,063	$	14,116	$	—		$	24,179
Tenant reimbursements	—		875		1,214		—			2,089
Independent living facilities	—		—		766		—			766
Interest and other income	—		—		72		—			72
Total revenues	—		10,938		16,168		—			27,106
Expenses:
Depreciation and amortization	—		3,194		5,054		—			8,248
Interest expense	—		5,742		1		—			5,743
Property taxes	—		875		1,214		—			2,089
Independent living facilities	—		—		708		—			708
Acquisition costs	—		203		—		—			203
General and administrative	410		1,873		—		—			2,283
Total expenses	410		11,887		6,977		—			19,274
Income in Subsidiary	8,242		9,191		—		(17,433		)	—
Net income	$	7,832	$	8,242	$	9,191	$	(17,433	)	$	7,832

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	42,503	$	42,751	$	—		$	85,254
Tenant reimbursements	—		3,577		3,676		—			7,253
Independent living facilities	—		—		2,407		—			2,407
Interest and other income	—		—		1,471		—			1,471
Total revenues	—		46,080		50,305		—			96,385
Expenses:
Depreciation and amortization	—		13,730		14,426		—			28,156
Interest expense	—		17,690		—		—			17,690
Loss on the extinguishment of debt	—		11,883		—		—			11,883
Property taxes	—		3,577		3,676		—			7,253
Independent living facilities	—		—		2,003		—			2,003
Impairment of real estate investment	—		—		890		—			890
General and administrative	1,948		6,416		62		—			8,426
Total expenses	1,948		53,296		21,057		—			76,301
Gain on disposition of other real estate investment	—		—		3,538		—			3,538
Income in Subsidiary	25,570		32,786		—		(58,356		)	—
Net income	$	23,622	$	25,570	$	32,786	$	(58,356	)	$	23,622

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	25,702	$	42,155	$	—		$	67,857
Tenant reimbursements	—		2,138		3,677		—			5,815
Independent living facilities	—		—		2,177		—			2,177
Interest and other income	—		—		587		—			587
Total revenues	—		27,840		48,596		—			76,436
Expenses:
Depreciation and amortization	—		8,118		15,315		—			23,433
Interest expense	—		16,548		496		—			17,044
Loss on the extinguishment of debt	—		—		326		—			326
Property taxes	—		2,138		3,677		—			5,815
Acquisition costs	—		203		—		—			203
Independent living facilities	—		—		1,926		—			1,926
General and administrative	1,281		5,377		66		—			6,724
Total expenses	1,281		32,384		21,806		—			55,471
Income in Subsidiary	22,246		26,790		—		(49,036		)	—
Net income	$	20,965	$	22,246	$	26,790	$	(49,036	)	$	20,965

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 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	$	(157	)	$	17,946		$	49,144		$	—		$	66,933
Cash flows from investing activities:
Acquisitions of real estate	—			(222,463		)	—			—			(222,463		)
Improvements to real estate	—			(571		)	(50		)	—			(621		)
Purchases of equipment, furniture and fixtures	—			(292		)	(67		)	—			(359		)
Escrow deposit for acquisition of real estate	—			(1,000		)	—			—			(1,000		)
Sale of other real estate investment	—			—			7,500			—			7,500
Distribution from subsidiary	38,544			—			—			(38,544		)	—
Intercompany financing	(169,391		)	56,527			—			112,864			—
Net cash (used in) provided by investing activities	(130,847		)	(167,799		)	7,383			74,320			(216,943		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	170,414			—			—			—			170,414
Proceeds from the issuance of senior unsecured notes payable	—			300,000			—			—			300,000
Borrowings under unsecured revolving credit facility	—			158,000			—			—			158,000
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	—			(6,047		)	—			—			(6,047		)
Net-settle adjustment on restricted stock	(866		)	—			—			—			(866		)
Dividends paid on common stock	(38,544		)	—			—			—			(38,544		)
Distribution to Parent	—			(38,544		)	—			38,544			—
Intercompany financing	—			169,391			(56,527		)	(112,864		)	—
Net cash provided by (used in) financing activities	131,004			157,161			(56,527		)	(74,320		)	157,318
Net increase in cash and cash equivalents	—			7,308			—			—			7,308
Cash and cash equivalents beginning of period	—			7,500			—			—			7,500
Cash and cash equivalents end of period	$	—		$	14,808		$	—		$	—		$	14,808

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities:	$	(73	)	$	8,332		$	41,254		$	—		$	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			58,570			(166,377		)	—
Net cash provided by (used in) financing activities	80,484			237,059			(36,452		)	(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