Real Estate Investments, Net

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

Real Estate Investments, Net

REAL ESTATE INVESTMENTS, NET

The following table summarizes the Company’s investment in owned properties as of March 31, 2020 and December 31, 2019 (dollars in thousands):

	March 31, 2020		December 31, 2019
Land	$	208,230	$	204,154
Buildings and improvements	1,423,769		1,400,927
Integral equipment, furniture and fixtures	94,576		93,005
Identified intangible assets	1,650		1,650
Real estate investments	1,728,225		1,699,736
Accumulated depreciation and amortization	(298,700)		(285,536)
Real estate investments, net	$	1,429,525	$	1,414,200

As of March 31, 2020, the Company’s 212 facilities were leased to various operators under triple-net leases. All of these leases contain annual escalators based on CPI, some of which are subject to a cap, or fixed rent escalators.

As of March 31, 2020, the Company has one independent living facility that the Company owns and operates.

As of March 31, 2020, the Company’s total future minimum rental revenues for all of its tenants, excluding operating expense reimbursements, were (dollars in thousands): 

Year	Amount
2020 (nine months)	$	125,502
2021	167,942
2022	168,039
2023	167,735
2024	167,836
2025	167,938
Thereafter	963,401
	$	1,928,393

Recent Real Estate Acquisitions

The following table summarizes the Company’s acquisitions for the three months ended March 31, 2020 (dollars in thousands):

Type of Property	Purchase Price(1)		Initial Annual Cash Rent		Number of Properties	Number of Beds/Units(2)
Skilled nursing	$	18,675	$	1,669	1	99
Multi-service campuses	—		—		—	—
Assisted living	7,396		590		1	62
Total	$	26,071	$	2,259	2	161

        (1) Purchase price includes capitalized acquisition costs.

        (2) The number of beds/units includes operating beds at acquisition date.

Sale of Real Estate 

On February 14, 2020, the Company closed on the sale of six skilled nursing facilities formerly operated by affiliates of Metron Integrated Health Systems (“Metron”). In connection with the sale for $36.0 million, the Company received $3.5 million in cash and provided subsidiaries of Cascade Capital Group, LLC (“Cascade”), the purchaser of the properties, with a short-term mortgage loan secured by these properties for $32.4 million.  The mortgage loan bore interest at 7.5% and initially had a maturity date of March 31, 2020. In connection with the sale, the Company recognized a loss of approximately $0.1 million. In April 2020, the mortgage loan was settled with $18.9 million in cash and a new mortgage loan for $13.9 million. See Note 12, Subsequent Events, and Note 4, Other Real Estate Investments, Net, for further detail.