Real Estate Investments, Net (Tables)

12 Months Ended

Dec. 31, 2020

Real Estate [Abstract]

Summary of Investment in Owned Properties

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

	December 31, 2020		December 31, 2019
Land	$	205,356	$	204,154
Buildings and improvements	1,477,849		1,400,927
Integral equipment, furniture and fixtures	97,836		93,005
Identified intangible assets	2,352		1,650
Real estate investments	1,783,393		1,699,736
Accumulated depreciation and amortization	(335,294)		(285,536)
Real estate investments, net	$	1,448,099	$	1,414,200

Schedule of Total Future Contractual Minimum Rental Income

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

Year	Amount
2021	$	174,400
2022	174,497
2023	174,193
2024	174,294
2025	174,396
Thereafter	1,026,675
	$	1,898,455

Schedule of Tenant Purchase Options

Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands):

Asset Type	Properties	Lease Expiration	1st Option Open Date	Option Type	Current Cash Rent(1)
ALF	7	October 2034	1/1/2021	A	$	3,207
SNF	11	January 2031	1/1/2022	C	$	4,800
SNF	1	March 2030	4/1/2022	B / C(2)	$	766
SNF / Campus	2	October 2032	1/1/2023	B	$	959
SNF	4	November 2034	12/1/2024	B	$	3,789
ALF	2	October 2034	1/1/2026	A	$	1,559

Option Type:

A - Fixed base price plus a specified share on any appreciation.

B - Fixed base price.

C - Fixed capitalization rate on lease revenue.

Notes:

(1) Based on annualized cash revenue for contracts in place at December 31, 2020.

(2) Purchase option reflects two option types.

Schedule of Rental Income

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

	For the Year Ended December 31,
	2020		2019
Rental Income
Contractual rent due(1)	$	171,309	$	166,056
Straight-line rent	77		1,385
Adjustment for collectibility(2)	—		(11,774)
Recovery of previously reversed rent(3)	1,047		—
Lease termination revenue(4)	1,179		—
Total	$	173,612	$	155,667

(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 year ended December 31, 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 $0.5 million of property tax reimbursements during the year ended December 31, 2019. If lease payments are subsequently deemed probable of collection, the Company increases rental income for such recoveries.

(3)During the year ended December 31, 2020, the Company recovered $1.0 million in rental income that was previously written off related to one operator.

(4)During the year ended December 31, 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 $1.2 million from Metron affiliates.

Schedule of Real Estate Acquisitions

The following table summarizes the Company’s acquisitions for the year ended December 31, 2020 (dollar amounts in thousands):

Type of Property	Purchase Price(1)		Initial Annual Cash Rent(2)		Number of Properties	Number of Beds/Units(3)
Skilled nursing	$	75,545	$	6,453	6	715
Multi-service campuses	6,876		555		1	184
Assisted living	7,396		590		1	62
Total	$	89,817	$	7,598	8	961

The following table summarizes the Company’s acquisitions for the year ended December 31, 2019 (dollar amounts in thousands):

Type of Property	Purchase Price(1)		Initial Annual Cash Rent(2)		Number of Properties	Number of Beds/Units(3)
Skilled nursing	$	254,760	$	22,909	17	2,099
Multi-service campuses	59,344		5,203		4	762
Assisted living	12,596		1,031		1	96
Total	$	326,700	$	29,143	22	2,957

The following table summarizes the Company’s acquisitions for the year ended December 31, 2018 (dollar amounts in thousands):

Type of Property	Purchase Price(1)			Initial Annual Cash Rent(2)		Number of Properties	Number of Beds/Units(3)
Skilled nursing	$	85,814		$	7,715	10	926
Multi-service campuses	27,520		(4)	2,240		2	177
Assisted living	—			—		—	—
Total	$	113,334		$	9,955	12	1,103

(1)    Purchase price includes capitalized acquisition costs.

(2)    Initial annual cash rent excludes ground lease income.

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

(4)    The Company committed to fund approximately $1.4 million in revenue-producing capital expenditures over 24 months based on the in-place yield, which was included in the purchase price.