Real Estate Investments, Net (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Investment in Owned Properties

The following table summarizes the Company’s investment in owned properties as of September 30, 2020 and December 31, 2019 (dollars in thousands):


	September 30, 2020		December 31, 2019
Land	$	209,280	$	204,154
Buildings and improvements	1,441,949		1,400,927
Integral equipment, furniture and fixtures	95,392		93,005
Identified intangible assets	1,650		1,650

Real estate investments	1,748,271		1,699,736
Accumulated depreciation and amortization	(325,033)		(285,536)

Real estate investments, net	$	1,423,238	$	1,414,200

Schedule of Total Future Minimum Rental Revenues

As of September 30, 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 (three months)	$	42,533
2021	170,186
2022	170,284
2023	169,980
2024	170,080
2025	170,183
Thereafter	973,638
Total	$	1,866,884

Schedule of Rental Income

The following table summarizes components of the Company’s rental revenue (dollars in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Rental Income	2020		2019		2020		2019
Contractual rent due(1)	$	42,866	$	43,109	$	127,789	$	124,642
Straight-line rent	17		546		65		1,483
Adjustment for collectibility(2)	—		(12,078)		—		(12,078)
Recovery of previously reversed rent(3)	1,047		—		1,047		—
Lease termination revenue(4)	1,106		—		1,106		—
Total	$	45,036	$	31,577	$	130,007	$	114,047

(1) Includes initial cash rent and tenant operating expense reimbursements, as adjusted for applicable rental escalators and rent increases due to capital expenditures funded by the Company. For tenants on a cash basis, this represents the lesser of the amount that would be recognized on a straight-line basis or cash that has been received.

(2) During the three and nine months ended September 30, 2019, and in accordance with ASC 842, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from five operators through maturity. As such, the Company reversed $7.8 million of contractual rent, $3.5 million of straight-line rent and $0.8 million of property taxes during the three and nine months ended September 30, 2019. If lease payments are subsequently deemed probable of collection, the Company increases rental income for such recoveries.

(3) During the three and nine months ended September 30, 2020, the Company recovered $1.0 million in rental revenue related to one operator that was previously written off.

(4) During the three and nine months ended September 30, 2020, in connection with the agreement to terminate its lease agreements with affiliates of Metron Integrated Health Systems (“Metron”) and to sell the facilities to a third-party, the Company received $1.1 million from Metron affiliates.

Schedule of Real Estate Acquisitions

The following table summarizes the Company’s acquisitions for the nine months ended September 30, 2020 (dollars in thousands):


Type of Property	Purchase Price(1)		Initial Annual Cash Rent		Number of Properties	Number of Beds/Units(2)
Skilled nursing	$	34,845	$	3,219	3	249

Assisted living	7,396		590		1	62
Total	$	42,241	$	3,809	4	311

(1) Purchase price includes capitalized acquisition costs.

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