Summarized Condensed Consolidating Information (Tables)

9 Months Ended

Sep. 30, 2018

Summarized Condensed Consolidating Information [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

SEPTEMBER 30, 2018

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	856,659	$	332,790	$	—		$	1,189,449
Other real estate investments, net	—			12,337		5,746		—			18,083
Cash and cash equivalents	—			15,745		—		—			15,745
Accounts and other receivables, net	—			9,567		2,817		—			12,384
Prepaid expenses and other assets	—			3,789		3		—			3,792
Deferred financing costs, net	—			904		—		—			904
Investment in subsidiaries	737,296			474,524		—		(1,211,820		)	—
Intercompany	—			—		136,277		(136,277		)	—
Total assets	$	737,296		$	1,373,525	$	477,633	$	(1,348,097	)	$	1,240,357
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	294,963	$	—	$	—		$	294,963
Senior unsecured term loan, net	—			99,588		—		—			99,588
Unsecured revolving credit facility	—			90,000		—		—			90,000
Accounts payable and accrued liabilities	—			15,401		3,109		—			18,510
Dividends payable	17,246			—		—		—			17,246
Intercompany	—			136,277		—		(136,277		)	—
Total liabilities	17,246			636,229		3,109		(136,277		)	520,307
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 83,353,226 shares issued and outstanding as of September 30, 2018	834			—		—		—			834
Additional paid-in capital	915,235			629,525		321,761		(951,286		)	915,235
Cumulative distributions in excess of earnings	(196,019		)	107,771		152,763		(260,534		)	(196,019		)
Total equity	720,050			737,296		474,524		(1,211,820		)	720,050
Total liabilities and equity	$	737,296		$	1,373,525	$	477,633	$	(1,348,097	)	$	1,240,357

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2017

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	805,826	$	346,435	$	—		$	1,152,261
Other real estate investments, net	—			12,399		5,550		—			17,949
Cash and cash equivalents	—			6,909		—		—			6,909
Accounts and other receivables, net	—			2,945		2,309		—			5,254
Prepaid expenses and other assets	—			893		2		—			895
Deferred financing costs, net	—			1,718		—		—			1,718
Investment in subsidiaries	619,075			444,120		—		(1,063,195		)	—
Intercompany	—			—		92,061		(92,061		)	—
Total assets	$	619,075		$	1,274,810	$	446,357	$	(1,155,256	)	$	1,184,986
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	294,395	$	—	$	—		$	294,395
Senior unsecured term loan, net	—			99,517		—		—			99,517
Unsecured revolving credit facility	—			165,000		—		—			165,000
Accounts payable and accrued liabilities	—			15,176		2,237		—			17,413
Dividends payable	14,044			—		—		—			14,044
Intercompany	—			92,061		—		(92,061		)	—
Total liabilities	14,044			666,149		2,237		(92,061		)	590,369
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 75,478,202 shares issued and outstanding as of December 31, 2017	755			—		—		—			755
Additional paid-in capital	783,237			546,097		321,761		(867,858		)	783,237
Cumulative distributions in excess of earnings	(178,961		)	62,564		122,359		(195,337		)	(189,375		)
Total equity	605,031			608,661		444,120		(1,063,195		)	594,617
Total liabilities and equity	$	619,075		$	1,274,810	$	446,357	$	(1,155,256	)	$	1,184,986

Condensed Consolidating Income Statements

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	20,554	$	14,778	$	—		$	35,332
Tenant reimbursements	—		1,804		1,186		—			2,990
Independent living facilities	—		—		871		—			871
Interest and other income	—		317		—		—			317
Total revenues	—		22,675		16,835		—			39,510
Expenses:
Depreciation and amortization	—		6,833		4,518		—			11,351
Interest expense	—		6,805		—		—			6,805
Property taxes	—		1,804		1,186		—			2,990
Independent living facilities	—		—		766		—			766
General and administrative	987		2,101		—		—			3,088
Total expenses	987		17,543		6,470		—			25,000
Income in Subsidiary	15,497		10,365		—		(25,862		)	—
Net income	$	14,510	$	15,497	$	10,365	$	(25,862	)	$	14,510

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 NINE MONTHS ENDED SEPTEMBER 30, 2018

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Elimination			Consolidated
Revenues:
Rental income	$	—	$	60,122	$	43,734	$	—		$	103,856
Tenant reimbursements	—		5,360		3,614		—			8,974
Independent living facilities	—		—		2,515		—			2,515
Interest and other income	—		1,039		196		—			1,235
Total revenues	—		66,521		50,059		—			116,580
Expenses:
Depreciation and amortization	—		20,488		13,739		—			34,227
Interest expense	—		21,182		—		—			21,182
Property taxes	—		5,360		3,614		—			8,974
Independent living facilities	—		—		2,226		—			2,226
General and administrative	2,822		6,740		76		—			9,638
Total expenses	2,822		53,770		19,655		—			76,247
Gain on sale of real estate	—		2,051		—		—			2,051
Income in Subsidiary	45,206		30,404		—		(75,610		)	—
Net income	$	42,384	$	45,206	$	30,404	$	(75,610	)	$	42,384

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 Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(7	)	$	28,087		$	44,310		$	—		$	72,390
Cash flows from investing activities:
Acquisitions of real estate	—			(75,621		)	—			—			(75,621		)
Improvements to real estate	—			(5,376		)	(25		)	—			(5,401		)
Purchases of equipment, furniture and fixtures	—			(1,193		)	(69		)	—			(1,262		)
Investment in real estate mortgage and other loans receivable	—			(2,598		)	—			—			(2,598		)
Principal payments received on real estate mortgage and other loans receivable	—			893			—			—			893
Escrow deposit for acquisitions of real estate	—			(1,000		)	—			—			(1,000		)
Net proceeds from the sale of real estate	—			13,004			—			—			13,004
Distribution from subsidiary	45,827			—			—			(45,827		)	—
Intercompany financing	(129,251		)	44,216			—			85,035			—
Net cash used in investing activities	(83,424		)	(27,675		)	(94		)	39,208			(71,985		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	130,546			—			—			—			130,546
Borrowings under unsecured revolving credit facility	—			60,000			—			—			60,000
Payments on unsecured revolving credit facility	—			(135,000		)	—			—			(135,000		)
Net-settle adjustment on restricted stock	(1,288		)	—			—			—			(1,288		)
Dividends paid on common stock	(45,827		)	—			—			—			(45,827		)
Distribution to Parent	—			(45,827		)	—			45,827			—
Intercompany financing	—			129,251			(44,216		)	(85,035		)	—
Net cash provided by (used in) financing activities	83,431			8,424			(44,216		)	(39,208		)	8,431
Net increase in cash and cash equivalents	—			8,836			—			—			8,836
Cash and cash equivalents beginning of period	—			6,909			—			—			6,909
Cash and cash equivalents end of period	$	—		$	15,745		$	—		$	—		$	15,745

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 acquisitions 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