Concentration of Risk

6 Months Ended

Jun. 30, 2020

Risks and Uncertainties [Abstract]

Concentration of Risk

CONCENTRATION OF RISKMajor operator concentrations – As of June 30, 2020, Ensign leased 85 skilled nursing, multi-service campuses, assisted living and independent living facilities which had a total of 8,882 beds and units 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 by rental revenues as of June 30, 2020 are California, Texas, Arizona and Utah. During both the three and six months ended June 30, 2020 Ensign represented 32% of the Company’s rental income, exclusive of operating

expense reimbursements. During the three and six months ended June 30, 2019 Ensign represented 34% and 37%, respectively, of the Company’s rental income, exclusive of operating expense reimbursements.

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.

As of June 30, 2020, Priority Management Group (“PMG”) leased 15 skilled nursing and campus facilities which had a total of 2,145 beds and units, and are located in Louisiana and Texas. During both the three and six months ended June 30, 2020, PMG represented 17% of the Company’s rental income, exclusive of operating expense reimbursements. During the three and six months ended June 30, 2019 PMG represented 15% and 12%, respectively, of the Company’s rental income, exclusive of operating expense reimbursements.