Concentration of Risk

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

Concentration of Risk

CONCENTRATION OF RISK

Major operator concentrations – As of September 30, 2019, Ensign leased 93 skilled nursing, multi-service campuses, assisted living and independent living facilities which had a total of 9,975 operational beds and are located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Texas, Utah and Washington. The four states in which Ensign leases the highest concentration of properties are California, Texas, Utah and Arizona as of September 30, 2019. During each of the three and nine months ended September 30, 2019, Ensign represented 50% and 40%, respectively, of the Company’s rental income, exclusive of operating expense reimbursements. During each of the three and nine months ended September 30, 2018, Ensign represented 42% of the Company’s rental income, exclusive of operating expense reimbursements. On October 1, 2019, Ensign completed the Pennant Spin. See Note 13, Subsequent Events for additional information regarding the Company’s facilities leased to Ensign subsequent to the Pennant Spin.

Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at http://www.sec.gov. The Company has not verified this information through an independent investigation or otherwise.