QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation | (I.R.S. Employer Identification No.) | |||||||
or organization) |
(Address of principal executive offices) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class: | Trading Symbol: | Name of each exchange on which registered: | ||||||||||||
Large accelerated filer | ☐ | ☒ | |||||||||
Smaller reporting company | Non-accelerated filer | ☐ | |||||||||
Emerging growth company |
PAGE | ||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
(Unaudited) | (Note) | ||||||||||
Assets | |||||||||||
Real estate investments: | |||||||||||
Land | $ | $ | |||||||||
Buildings, improvements and other | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Net real estate property | |||||||||||
Acquired lease and other intangible assets | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Net real estate intangibles | |||||||||||
Net real estate investments | |||||||||||
Cash and cash equivalents | |||||||||||
Receivables and other assets, net | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities, Redeemable Preferred Stock and Equity | |||||||||||
Liabilities | |||||||||||
Debt, net | $ | $ | |||||||||
Accrued expenses and other liabilities | |||||||||||
Total Liabilities | |||||||||||
Commitments and contingencies (Note 15) | |||||||||||
Redeemable preferred stock, par value $ | |||||||||||
Equity | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Equity | |||||||||||
Total Liabilities, Redeemable Preferred Stock and Equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenues | |||||||||||
Resident fees and services | $ | $ | |||||||||
Rental revenue | |||||||||||
Total revenues | |||||||||||
Expenses | |||||||||||
Property operating expense | |||||||||||
Depreciation and amortization | |||||||||||
Interest expense | |||||||||||
General and administrative expense | |||||||||||
Acquisition, transaction and integration expense | |||||||||||
Loss on extinguishment of debt | |||||||||||
Other expense (income) | ( | ||||||||||
Total expenses | |||||||||||
Loss before income taxes | ( | ( | |||||||||
Income tax expense | |||||||||||
Loss from continuing operations | ( | ( | |||||||||
Discontinued Operations: | |||||||||||
Gain on sale of real estate | |||||||||||
Loss from discontinued operations | ( | ||||||||||
Discontinued operations, net | |||||||||||
Net income (loss) | ( | ||||||||||
Deemed dividend on redeemable preferred stock | ( | ( | |||||||||
Net income (loss) attributable to common stockholders | $ | ( | $ | ||||||||
Basic and diluted earnings per common share: (A) | |||||||||||
Loss from continuing operations attributable to common stockholders | $ | ( | $ | ( | |||||||
Discontinued operations, net | |||||||||||
Net income (loss) attributable to common stockholders (B) | $ | ( | $ | ||||||||
Weighted average number of shares of common stock outstanding | |||||||||||
Basic and diluted (C) | |||||||||||
Dividends declared and paid per share of common stock | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Other comprehensive income (loss): | |||||||||||
Unrealized gain (loss) on cash flow hedge | ( | ||||||||||
Total other comprehensive income (loss) | ( | ||||||||||
Total comprehensive income (loss) | $ | ( | $ | ( |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Deficit | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Equity at December 31, 2020 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Equity awards vested | — | — | — | |||||||||||||||||||||||||||||||||||
Shares repurchased and retired to satisfy tax withholding upon vesting | ( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Amortization of equity-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Option exercise | — | ( | — | |||||||||||||||||||||||||||||||||||
Dividends declared - common stock ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends declared - equity awards ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Deemed dividend on redeemable preferred stock | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends declared on redeemable preferred stock | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net loss | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Equity at March 31, 2021 | $ | $ | ( | $ | $ | ( | $ |
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Deficit | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Equity at December 31, 2019 | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Equity awards vested | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares repurchased and retired to satisfy tax withholding upon vesting | ( | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Amortization of equity-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends declared - common stock ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends declared - equity awards ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Deemed dividend on redeemable preferred stock | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends declared on redeemable preferred stock | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity at March 31, 2020 | $ | $ | ( | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation of tangible assets and amortization of intangible assets | |||||||||||
Amortization of deferred financing costs | |||||||||||
Amortization of deferred revenue, net | ( | ( | |||||||||
Non-cash straight-line rental revenue | ( | ( | |||||||||
Loss on extinguishment of debt | |||||||||||
Amortization of equity-based compensation | |||||||||||
Gain on sale of real estate | ( | ||||||||||
Other non-cash expense | |||||||||||
Changes in: | |||||||||||
Receivables and other assets, net | ( | ( | |||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Net cash provided by (used in) operating activities - continuing operations | ( | ( | |||||||||
Net cash provided by (used in) operating activities - discontinued operations | ( | ||||||||||
Net cash provided by (used in) operating activities | ( | ( | |||||||||
Cash Flows From Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Insurance proceeds, net | |||||||||||
Net cash provided by (used in) investing activities - continuing operations | ( | ( | |||||||||
Net cash provided by (used in) investing activities - discontinued operations (A) | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash Flows From Financing Activities | |||||||||||
Principal payments of mortgage notes payable and capital lease obligations | ( | ( | |||||||||
Proceeds from mortgage notes payable | |||||||||||
Proceeds from borrowings on the revolving credit facility | |||||||||||
Repayments of mortgage notes payable and capital lease obligations | ( | ||||||||||
Payment of exit fee on extinguishment of debt | ( | ||||||||||
Payment of deferred financing costs | ( | ||||||||||
Purchase of interest rate caps | ( | ||||||||||
Taxes paid for net settlement of equity-based compensation awards | ( | ( | |||||||||
Payment of common stock dividend | ( | ( | |||||||||
Payment of redeemable preferred stock dividend | ( | ( | |||||||||
Payment of restricted stock dividend | ( | ( | |||||||||
Net cash provided by (used in) financing activities - continuing operations | ( | ( | |||||||||
Net cash provided by (used in) financing activities - discontinued operations (B) | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ( | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid during the period for interest expense | $ | $ | |||||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||||||
Capital lease obligations | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (A) | |||||||||||
Total, beginning of period | $ | $ | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (A) | |||||||||||
Total, end of period | $ | $ |
Three Months Ended March 31, 2020 | |||||
Revenues | |||||
Resident fees and services | $ | ||||
Total revenues | |||||
Expenses | |||||
Property operating expenses | |||||
Interest expense | |||||
Acquisition, transaction, and integration expense | |||||
General and administrative expense | |||||
Loss on extinguishment of debt | |||||
Other income | ( | ||||
Total expenses | |||||
Loss before income taxes | ( | ||||
Income tax benefit | ( | ||||
Loss from discontinued operations | $ | ( |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Depreciation | Net Carrying Value | Gross Carrying Amount | Accumulated Depreciation | Net Carrying Value | ||||||||||||||||||||||||||||||
Land | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Building and improvements | ( | ( | |||||||||||||||||||||||||||||||||
Furniture, fixtures and equipment | ( | ( | |||||||||||||||||||||||||||||||||
Total real estate investments | $ | $ | ( | $ | $ | $ | ( | $ |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Remaining Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Remaining Amortization Period | ||||||||||||||||||||||||||||||||||||||||
Intangible lease assets | $ | $ | ( | $ | $ | $ | ( | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Escrows held by lenders (A) | $ | $ | |||||||||
Straight-line rent receivable | |||||||||||
Prepaid expenses | |||||||||||
Security deposits | |||||||||||
Resident receivables, net | |||||||||||
Derivative asset | |||||||||||
Other assets and receivables | |||||||||||
Total receivables and other assets | $ | $ |
2021 (nine months) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total future minimum rents | $ |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value (A) | Maturity Date | Stated Interest Rate | Weighted Average Maturity (Years) | Outstanding Face Amount | Carrying Value (A) | |||||||||||||||||||||||||||||||||||
Floating Rate (B)(C) | $ | $ | Mar 2022- Mar 2030 | 1M LIBOR + 1M LIBOR + | $ | $ | |||||||||||||||||||||||||||||||||||
Fixed Rate | Sep 2025 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Accounts payable | $ | $ | |||||||||
Security deposits payable | |||||||||||
Due to property managers | |||||||||||
Mortgage interest payable | |||||||||||
Deferred community fees, net | |||||||||||
Rent collected in advance | |||||||||||
Property tax payable | |||||||||||
Derivative liability | |||||||||||
Other liabilities | |||||||||||
Total accrued expenses and other liabilities | $ | $ |
Fair Value Hierarchy | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents (A) | 1 | $ | $ | $ | $ | ||||||||||||||||||||||||
Restricted cash (A) | 1 | ||||||||||||||||||||||||||||
Interest rate swap (B) | 2 | ||||||||||||||||||||||||||||
Interest rate caps (B) | 2 | ||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Mortgage debt (C) | 3 | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest rate swap (B) | 2 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Current | |||||||||||
Federal | $ | $ | |||||||||
State and local | |||||||||||
Total current provision | |||||||||||
Deferred | |||||||||||
Federal | |||||||||||
State and local | |||||||||||
Total deferred provision | |||||||||||
Total provision for income taxes | $ | $ |
Balance as of December 31, 2020 | $ | ||||
Accrued dividend | |||||
Paid dividend | ( | ||||
Balance as of March 31, 2021 | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Numerator | |||||||||||
Loss from continuing operations attributable to common stockholders | $ | ( | $ | ( | |||||||
Discontinued operations, net | |||||||||||
Net income (loss) attributable to common stockholders | ( | ||||||||||
Less: Non-forfeitable dividends allocated to participating RSUs | ( | ( | |||||||||
Net income (loss) available to common shares outstanding | $ | ( | $ | ||||||||
Denominator | |||||||||||
Basic weighted average common shares outstanding (A) | |||||||||||
Dilutive common shares - equity awards and options (B) | |||||||||||
Diluted weighted average common shares outstanding | |||||||||||
Basic earnings per common share: | |||||||||||
Loss from continuing operations attributable to common stockholders | $ | ( | $ | ( | |||||||
Discontinued operations, net | |||||||||||
Net income (loss) attributable to common stockholders (C) | $ | ( | $ | ||||||||
Diluted earnings per common share: | |||||||||||
Loss from continuing operations attributable to common stockholders | $ | ( | $ | ( | |||||||
Discontinued operations, net | |||||||||||
Net income (loss) attributable to common stockholders (C) | $ | ( | $ |
Year | Operating Leases | ||||
2021 (nine months) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total future minimum lease payments | |||||
Less imputed interest | ( | ||||
Total operating lease liability | $ |
Three Months Ended March 31, | Increase (Decrease) | ||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | Amount | Percentage | |||||||||||||||||||
Resident fees and services | $ | 78,113 | $ | 85,007 | $ | (6,894) | (8.1) | % | |||||||||||||||
Rental revenue | 1,583 | 1,583 | — | — | % | ||||||||||||||||||
Less: Property operating expense | 49,448 | 51,065 | (1,617) | (3.2) | % | ||||||||||||||||||
Total NOI | 30,248 | 35,525 | (5,277) | (14.9) | % | ||||||||||||||||||
Straight-line rental revenue | (95) | (134) | 39 | (29.1) | % | ||||||||||||||||||
Amortization of deferred community fees and other | (696) | (304) | (392) | 128.9 | % | ||||||||||||||||||
Cash NOI | 29,457 | 35,087 | (5,630) | (16.0) | % | ||||||||||||||||||
Addback adjustments (A) | 791 | 438 | 353 | 80.6 | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Depreciation and amortization | 15,889 | 17,536 | (1,647) | (9.4) | % | ||||||||||||||||||
Interest expense | 14,353 | 17,219 | (2,866) | (16.6) | % | ||||||||||||||||||
General and administrative expense | 6,275 | 5,846 | 429 | 7.3 | % | ||||||||||||||||||
Acquisition, transaction and integration expense | 393 | 133 | 260 | 195.5 | % | ||||||||||||||||||
Loss on extinguishment of debt | — | 5,884 | (5,884) | NM | |||||||||||||||||||
Other expense (income) | 615 | (105) | 720 | NM | |||||||||||||||||||
Total expenses | 37,525 | 46,513 | (8,988) | (19.3) | % | ||||||||||||||||||
Loss before income taxes | (7,277) | (10,988) | 3,711 | 33.8 | % | ||||||||||||||||||
Income tax expense | 34 | 60 | (26) | (43.3) | % | ||||||||||||||||||
Loss from continuing operations | (7,311) | (11,048) | 3,737 | 33.8 | % | ||||||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||
Gain on sale of real estate | — | 19,992 | (19,992) | NM | |||||||||||||||||||
Loss from discontinued operations | — | (3,107) | 3,107 | NM | |||||||||||||||||||
Discontinued operations, net | — | 16,885 | (16,885) | NM | |||||||||||||||||||
Net income (loss) | (7,311) | 5,837 | (13,148) | NM | |||||||||||||||||||
Deemed dividend on redeemable preferred stock | (296) | (598) | 302 | (50.5) | % | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (7,607) | $ | 5,239 | $ | (12,846) | NM | ||||||||||||||||
Total properties as of the period ended | 103 | 103 | |||||||||||||||||||||
Average available beds | 12,438 | 12,439 |
Three Months Ended March 31, | Increase (Decrease) | ||||||||||||||||
(dollars in thousands) | 2021 | 2020 | Amount | ||||||||||||||
Net cash provided by (used in) | |||||||||||||||||
Operating activities | $ | (432) | $ | (4,241) | $ | 3,809 | |||||||||||
Investing activities | (2,463) | 371,018 | (373,481) | ||||||||||||||
Financing activities | (8,766) | (282,173) | 273,407 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (11,661) | 84,604 | (96,265) | ||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 53,795 | 63,829 | (10,034) | ||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 42,134 | $ | 148,433 | $ | (106,299) |
Period from April 1, 2021 to December 31, 2021 | 2022 (D) | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Principal payments | $ | 7,135 | $ | 19,125 | $ | 19,841 | $ | 24,186 | $ | 21,518 | $ | 22,777 | $ | 114,582 | |||||||||||||||||||||||||||
Balloon payments | — | 48,419 | — | — | 1,098,238 | 238,759 | 1,385,416 | ||||||||||||||||||||||||||||||||||
Subtotal | 7,135 | 67,544 | 19,841 | 24,186 | 1,119,756 | 261,536 | 1,499,998 | ||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 20,000 | — | — | — | — | — | 20,000 | ||||||||||||||||||||||||||||||||||
Interest & redeemable preferred stock dividend (A)(B) | 34,930 | 43,712 | 42,611 | 42,046 | 35,230 | 24,153 | 222,682 | ||||||||||||||||||||||||||||||||||
Leases | 484 | 515 | 472 | 240 | 8 | 305 | 2,024 | ||||||||||||||||||||||||||||||||||
Total obligations (C) | $ | 62,549 | $ | 111,771 | $ | 62,924 | $ | 66,472 | $ | 1,154,994 | $ | 285,994 | $ | 1,744,704 |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2021 | 2020 | |||||||||
Net income (loss) attributable to common stockholders | $ | (7,607) | $ | 5,239 | |||||||
Depreciation and amortization | 15,889 | 17,536 | |||||||||
Gain on sale of real estate | — | (19,992) | |||||||||
FFO | 8,282 | 2,783 | |||||||||
Acquisition, transaction and integration expense | 393 | 1,170 | |||||||||
Loss on extinguishment of debt | — | 9,486 | |||||||||
Compensation expense related to transition awards | 325 | 390 | |||||||||
Other expense (income) (A) | 615 | (294) | |||||||||
Normalized FFO | 9,615 | 13,535 | |||||||||
Straight line rental revenue | (95) | (134) | |||||||||
Amortization of equity-based compensation expense | 1,760 | 1,106 | |||||||||
Amortization of deferred financing costs | 957 | 906 | |||||||||
Amortization of deferred community fees and other | (696) | (1,314) | |||||||||
Adjusted FFO | $ | 11,541 | $ | 14,099 |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2021 | 2020 | |||||||||
Net income (loss) attributable to common stockholders | $ | (7,607) | $ | 5,239 | |||||||
Depreciation and amortization | 15,889 | 17,536 | |||||||||
Deemed dividend on redeemable preferred stock | 296 | 598 | |||||||||
Gain on sale of real estate | — | (19,992) | |||||||||
Acquisition, transaction and integration expense | 393 | 1,170 | |||||||||
Loss on extinguishment of debt | — | 9,486 | |||||||||
Compensation expense related to transition awards | 325 | 390 | |||||||||
Other expense (income) (A) | 615 | (294) | |||||||||
Amortization of equity-based compensation expense | 1,760 | 1,106 | |||||||||
Interest expense | 14,353 | 18,580 | |||||||||
Income tax expense | 34 | 59 | |||||||||
Adjusted EBITDA | $ | 26,058 | $ | 33,878 |
Outstanding Face Amount | |||||||||||
(dollars in thousands) | March 31, 2021 | December 31, 2020 | |||||||||
Floating Rate | $ | 419,137 | $ | 419,316 | |||||||
Fixed Rate | 1,080,861 | 1,082,808 | |||||||||
Total | $ | 1,499,998 | $ | 1,502,124 |
Exhibits filed with this Form 10-Q: | |||||
101.INS | Interactive Data File formatted in Inline XBRL | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
NEW SENIOR INVESTMENT GROUP INC. | ||||||||
By: | /s/ Bhairav Patel | |||||||
Bhairav Patel | ||||||||
Executive Vice President of Finance and Accounting and Interim Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | ||||||||
May 5, 2021 |
1. | I have reviewed this quarterly report on Form 10-Q of New Senior Investment Group Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 5, 2021 | /s/ Susan Givens | ||||
Susan Givens | |||||
Director and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of New Senior Investment Group Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 5, 2021 | /s/ Bhairav Patel | ||||
Bhairav Patel | |||||
Executive Vice President of Finance and Accounting and Interim Chief Financial Officer |
May 5, 2021 | /s/ Susan Givens | ||||
Susan Givens | |||||
Director and Chief Executive Officer |
May 5, 2021 | /s/ Bhairav Patel | ||||
Bhairav Patel | |||||
Executive Vice President of Finance and Accounting and Interim Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |||||||
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Revenues | ||||||||
Total revenues | $ 79,696 | $ 86,590 | ||||||
Expenses | ||||||||
Property operating expense | 49,448 | 51,065 | ||||||
Depreciation and amortization | 15,889 | 17,536 | ||||||
Interest expense | 14,353 | 17,219 | ||||||
General and administrative expense | 6,275 | 5,846 | ||||||
Acquisition, transaction and integration expense | 393 | 133 | ||||||
Loss on extinguishment of debt | 0 | 5,884 | ||||||
Other expense (income) | 615 | (105) | ||||||
Total expenses | 86,973 | 97,578 | ||||||
Loss before income taxes | (7,277) | (10,988) | ||||||
Income tax expense | 34 | 60 | ||||||
Loss from continuing operations | (7,311) | (11,048) | ||||||
Discontinued Operations: | ||||||||
Gain on sale of real estate | 0 | 19,992 | ||||||
Loss from discontinued operations | 0 | (3,107) | ||||||
Discontinued operations, net | 0 | 16,885 | ||||||
Net income (loss) | (7,311) | 5,837 | ||||||
Deemed dividend on redeemable preferred stock | (296) | (598) | ||||||
Net income (loss) attributable to common stockholders | $ (7,607) | $ 5,239 | ||||||
Basic and diluted earnings per common share: | ||||||||
Loss from continuing operations attributable to common stockholders, per basic share (in dollars per share) | [1] | $ (0.09) | $ (0.14) | |||||
Loss from continuing operations attributable to common stockholders, per diluted share (in dollars per share) | [1] | (0.09) | (0.14) | |||||
Discontinued operations, net (in dollars per share) | [1] | 0 | 0.20 | |||||
Discontinued operations, net (in dollars per share) | [1] | 0 | 0.20 | |||||
Net income (loss) attributable to common stockholders, basic (in dollars per share) | [1],[2] | (0.09) | 0.06 | |||||
Net income (loss) attributable to common stockholders, diluted (in dollars per share) | [1],[2] | $ (0.09) | $ 0.06 | |||||
Weighted average number of shares of common stock outstanding | ||||||||
Weighted average number of shares of common stock outstanding, Basic (in shares) | [3] | 82,815,790 | 82,386,622 | |||||
Weighted average number of shares of common stock outstanding, Diluted (in shares) | [3] | 82,815,790 | 82,386,622 | |||||
Dividends declared and paid per share of common stock (in dollars per share) | $ 0.07 | $ 0.13 | ||||||
Resident fees and services | ||||||||
Revenues | ||||||||
Total revenues | $ 78,113 | $ 85,007 | ||||||
Rental revenue | ||||||||
Revenues | ||||||||
Total revenues | $ 1,583 | $ 1,583 | ||||||
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (7,311) | $ 5,837 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on cash flow hedge | 7,170 | (8,718) |
Total other comprehensive income (loss) | 7,170 | (8,718) |
Total comprehensive income (loss) | $ (141) | $ (2,881) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Dividends declared (in dollars per share) | $ 0.065 | $ 0.13 |
Equity awards, dividends, per share, declared | $ 0.065 | $ 0.13 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (Unaudited) - shares |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Income Statement [Abstract] | ||
Restricted stock excluded from basic weighted average share calculation | 266,139 | 493,599 |
ORGANIZATION |
3 Months Ended |
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Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION New Senior Investment Group Inc. (“New Senior,” “we,” “us” or “our”) is a Real Estate Investment Trust (“REIT”) primarily focused on investing in private pay senior housing properties. As of March 31, 2021, we owned a geographically diversified portfolio of 103 primarily private pay senior housing properties consisting of 102 independent living (“IL”) properties and one continuing care retirement community (“CCRC”), located across 36 states. We are listed on the New York Stock Exchange (“NYSE”) under the symbol “SNR” and are headquartered in New York, New York. We operate in one reportable segment: Senior Housing Properties. Our 102 IL properties are managed by Holiday Retirement (“Holiday”), a company that is majority owned by private equity funds managed by an affiliate of FIG LLC (the “Former Manager”), a subsidiary of Fortress Investment Group LLC (“Fortress”), subsidiaries of Merrill Gardens LLC (“Merrill Gardens”), a former affiliate of our Former Manager, and Grace Management, Inc. (“Grace”) (collectively, the “Property Managers”), under Property Management Agreements (collectively, the “Property Management Agreements”). Under the Property Management Agreements, the Property Managers are responsible for the day-to-day operations of our senior housing properties and are entitled to a management fee in accordance with the terms of the Property Management Agreements. Our Property Management Agreements have initial five-year or ten-year terms, with successive, automatic -year renewal periods. We pay property management fees of 4.5% to 5.0% of effective gross income pursuant to our Property Management Agreements and, in some cases, the Property Managers are eligible to earn an incentive fee based on operating performance. Our CCRC is leased to Watermark Retirement Communities, Inc. (“Watermark”), a healthcare operating company, under a triple net lease agreement. In a triple net lease arrangement, the lessee agrees to operate and maintain the property at its own expense, including maintenance, utilities, taxes, insurance, repairs, capital improvements and the payroll expense of property-level employees. Our triple net lease agreement has an initial term of 15 years and includes a renewal option and annual rent increases ranging from 2.75% to 3.25%. We were formed as a Delaware limited liability company on May 17, 2012 as a wholly owned subsidiary of Drive Shack Inc., formerly Newcastle Investment Corp. (“Drive Shack”). On November 6, 2014, we were spun-off from Drive Shack and our shares of common stock were publicly listed on the NYSE. Coronavirus (COVID-19) global pandemic The novel coronavirus (COVID-19) global pandemic is causing significant disruptions to the U.S. and global economies and has contributed to volatility and negative pressure in financial markets. During the three months ended March 31, 2021 and 2020, we incurred $0.3 million and $0.5 million of COVID-19 related costs, respectively, which were recorded in “Property operating expense” in our Consolidated Statements of Operations. These costs mainly consist of personal protective equipment (“PPE”) and other supplies such as packaging necessary for in-room meal deliveries to our residents and to a lesser extent testing kits for residents and staff, temperature screening machines, additional cleaning equipment, or protocols related to the properties. During the three months ended March 31, 2021, we saw these costs continue, but they have been largely offset by variable expense savings associated with lower occupancy and strong expense management from our property managers. Depending upon how the pandemic continues to evolve, there may be other future operating expenses that we may be required to bear. As of March 31, 2021, almost all of our properties had hosted clinics to administer the COVID-19 vaccine to residents and employees, however it is too early to determine whether vaccination levels or availability will influence demand and occupancy at our properties. The full extent to which the pandemic will directly or indirectly impact our business including revenues, expenses, value of our real estate, collectability of receivables and operating cash flows is highly uncertain and difficult to predict. If the economic downturn resulting from COVID-19 and measures taken to contain it persists over a long period of time, it could have a prolonged negative impact on our financial condition and results of operations. As the extent and duration of the increasingly broad effects of COVID-19 on the U.S. economy remains unclear, it is difficult for us to assess and estimate its impact on our results of operations at this time. We have evaluated the impacts of COVID-19 on our business operations to date and have incorporated information concerning the impact of COVID-19 in our assessment of the business. We will continue to monitor the COVID-19 pandemic and adjust our assessment based on the latest information available.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP’’) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. The consolidated financial statements include the accounts of New Senior and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. We consolidate those entities in which we have control over significant operating, financial and investing decisions of the entity. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC. Certain prior period amounts have been reclassified to conform to the current period’s presentation. Significant Accounting Policies Refer to our significant accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020 for other significant accounting policies. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes. The ASU simplifies accounting for income taxes by eliminating certain exceptions to the general approach in ASC 740, Income Taxes, and clarifies certain aspects of the guidance for more consistent application. The simplifications relate to intraperiod tax allocations when there is a loss in continuing operations and a gain outside of continuing operations, accounting for tax law or tax rate changes and year-to-date losses in interim periods, recognition of deferred tax liability for outside basis difference when investment ownership changes, and accounting for franchise taxes that are partially based on income. Transition is generally prospective, other than the provision related to outside basis difference which is on a modified retrospective basis with the cumulative effect adjusted to retained earnings at the beginning of the period adopted, and franchise tax provision which is either full or modified retrospective. We adopted ASU 2019-12 on January 1, 2021, and the adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Rate (“LIBOR”) or another rate that is expected to be discontinued. Companies can adopt ASU 2020-04 anytime during the effective period of March 12, 2020 through December 31, 2022. We are currently assessing the provisions of ASU 2020-04 and have not made any hedge accounting elections as of March 31, 2021. If an election is made at a later date, we will apply the provisions of this guidance. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of the discontinuation of the use of LIBOR as a benchmark interest rate due to reference rate reform. We are currently evaluating the impact of this guidance.
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DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On February 10, 2020, we sold a portfolio of 28 assisted living/memory care (“AL/MC”) properties for a gross sale price of $385.0 million (the “AL/MC Portfolio Disposition”) to affiliates of ReNew REIT LLC. The portfolio represented a separate reportable segment at the time and the sale represented a strategic shift that would have a major effect on our operations and financial results. As a result, we classified the assets and liabilities associated with the operations of the 28 AL/MC properties as discontinued operations in our consolidated financial statements for the three months ended March 31, 2020. Refer to “Note 4 - Dispositions” for details. For the three months ended March 31, 2020, the results of operations associated with discontinued operations are as follows:
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DISPOSITIONS |
3 Months Ended |
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Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITIONS | DISPOSITIONS 2021 Activity We did not have any dispositions during the three months ended March 31, 2021. 2020 Activity On February 10, 2020, we completed the AL/MC Portfolio Disposition for a gross sale price of $385.0 million and recognized a gain on sale of $20.0 million, which is recorded in “Gain on sale of real estate” within “Discontinued operations, net” in our Consolidated Statements of Operations for the three months ended March 31, 2020. In conjunction with the sale, we repaid $260.2 million of debt specifically attributable to the properties included in the AL/MC Portfolio Disposition and recognized a loss on extinguishment of debt of $3.6 million, comprised of $2.5 million in prepayment penalties and $1.1 million in the write-off of unamortized deferred financing costs, which is included in “Loss from discontinued operations” in our Consolidated Statements of Operations for the three months ended March 31, 2020.
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SEGMENT REPORTING |
3 Months Ended |
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Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTINGOur primary business is investing in senior housing properties. We currently operate and report results in one reportable segment, Senior Housing Properties. Prior to the fourth quarter of 2020, we had two reportable segments (Managed IL Properties and Other Properties). Due to the AL/MC Disposition which resulted in the sale of all but one of the assets in the Other Properties segment, we changed the composition of our reportable segments to be in line with the financial information reviewed and used by the chief operating decision maker to make operating decisions, assess performance, develop strategy and allocate capital resources. Accordingly, all prior period segment information has been reclassified to conform to the current period presentation. |
REAL ESTATE INVESTMENTS |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE INVESTMENTS | REAL ESTATE INVESTMENTS The following table summarizes our real estate investments:
Depreciation expense was $15.8 million and $17.4 million for the three months ended March 31, 2021 and 2020, respectively. The following table summarizes our real estate intangibles:
Amortization expense was $0.1 million for both the three months ended March 31, 2021 and 2020. We evaluate long-lived assets, primarily consisting of our real estate investments, for impairment indicators. In performing this evaluation, market conditions and our current intentions with respect to holding or disposing of the asset are considered. Where indicators of impairment are present, we evaluate whether the sum of the expected future undiscounted cash flows is less than book value. Based on our assessment, no charges were necessary for the three months ended March 31, 2021 and 2020. Impact of Texas Winter Storm During the three months ended March 31, 2021, we recognized $0.3 million related to damage remediation and other incremental costs for 21 properties impacted by a significant winter storm in Texas in February 2021, which are included in “Other expense” in our Consolidated Statements of Operations. We do not expect additional remediation costs related to the winter storm in subsequent periods to be material.
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RECEIVABLES AND OTHER ASSETS, NET |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES AND OTHER ASSETS, NET | RECEIVABLES AND OTHER ASSETS, NET The following table summarizes our receivables and other assets, net:
(A)Represents amounts held by lenders in tax, insurance, replacement reserve and other escrow accounts that are related to mortgage notes collateralized by our properties. Straight-line Rent Receivable Rental revenue from our triple net lease property is recognized on a straight-line basis over the applicable term of the lease when collectability of substantially all rents is probable. Recognizing rental revenue on a straight-line basis typically results in recognizing revenue in excess of cash amounts contractually due from our tenant during the first half of the lease term, creating a straight-line rent receivable. We assess the collectability of straight-line rent receivables on an ongoing basis. This assessment is based on several qualitative and quantitative factors, including and as appropriate, the payment history of the triple net lease tenant, the tenant’s ability to satisfy its lease obligations, the value of the underlying collateral or deposit, if any, and current economic conditions. If our evaluation of these factors indicates it is not probable that we will collect substantially all rents, any lease income is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. The following table sets forth future contracted minimum rents from the tenant of our triple net lease property, excluding contingent payment escalations, as of March 31, 2021:
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DEBT, NET |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT, NET | DEBT, NET
(A)The totals are reported net of deferred financing costs of $15.0 million and $16.0 million as of March 31, 2021 and December 31, 2020, respectively. (B)Substantially all of these loans have LIBOR caps that range between 3.38% and 3.75% as of March 31, 2021. (C)As of March 31, 2021, $620.0 million of total floating rate debt has been hedged using interest rate swaps, which are carried at fair value. See “Note 9 - Derivative Instruments” for more information. The carrying value of the collateral relating to the floating rate and fixed rate debt was $1.2 billion and $0.5 billion, respectively, as of both March 31, 2021, and December 31, 2020. Mortgage Debt In February 2020, in conjunction with the AL/MC Portfolio Disposition, we obtained mortgage financing in the aggregate amount of $270.0 million from KeyBank and assigned to Federal Home Loan Mortgage Corporation (the “2020 Freddie Financing”). The 2020 Freddie Financing is secured by 14 of our senior housing properties, matures on March 1, 2030, and bears interest at an adjustable rate, adjusted monthly, equal to the sum of the one month LIBOR index rate plus 2.12%. Concurrently on the same date, we used the funds from the 2020 Freddie Financing and proceeds from the AL/MC Portfolio Disposition to prepay an aggregate of $368.1 million of secured loans. We recognized a loss on extinguishment of debt of $5.9 million, comprised of $4.5 million in prepayment penalties and $1.4 million in the write-off of unamortized deferred financing costs, which is included in “Loss on extinguishment of debt” on our Consolidated Statements of Operations for the three months ended March 31, 2020. We incurred a total of $3.3 million in deferred financing costs, which have been capitalized and are being amortized over the life of the loan and the related amortization is included in “Interest expense” in our Consolidated Statements of Operations three months ended March 31, 2020. Revolving Credit Facility In February 2020, in connection with the AL/MC Portfolio Disposition, we also amended our secured revolving credit facility in the amount of $125.0 million (the “Revolver”), and extended its maturity from December 2021 to February 9, 2024. The amendment allows the Revolver to be increased with lender consent to a maximum aggregate amount of $500.0 million, of which (i) up to 10% may be used for the issuance of letters of credit, and (ii) up to 10% may be drawn by us in the form of swing loans. The Revolver bears an interest rate of, at our option, (i) the sum of LIBOR plus 2.0% or, in the case of a swing line loan, (ii) the greater of (a) the fluctuating annual rate of interest announced from time to time by KeyBank as its “prime rate,” plus 1.0% (b) 1.5% above the effective federal funds rate and (c) the sum of LIBOR for a one-month interest period plus 2.0%. The Revolver is secured by nine of our senior housing properties and the pledge of the equity interests of certain of our wholly owned subsidiaries. As of March 31, 2021, there were no borrowings outstanding under the Revolver. We continue to pay a fee for unused amounts of the Revolver under certain circumstances, which was $0.1 million for the three months ended March 31, 2021 and included in “Interest expense” in our Consolidated Statements of Operations. Our fee for unused amounts was not material for the three months ended March 31, 2020. Our debt agreements contain various customary financial and other covenants, in some cases including a debt service coverage ratio and project yield, as defined in the agreements. We are in compliance with the covenants in our debt agreements as of March 31, 2021.
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DERIVATIVE INSTRUMENTS |
3 Months Ended |
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Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. Derivatives Designated as Hedging Instruments Interest rate swap In August 2020, we entered into a $270.0 million notional interest rate swap with a maturity in September 2025. In May 2019, we entered into a $350.0 million notional interest rate swap with a maturity of May 2022. Both swaps effectively convert LIBOR-based floating rate debt to fixed rate debt, thus reducing the impact of interest-rate changes on future interest expense. These interest rate swaps were designated and qualified as cash flow hedged with the change in fair value included in the assessment of hedge effectiveness deferred as a component of other comprehensive income (“OCI”), and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of March 31, 2021 and December 31, 2020, our interest rate swap liability of $8.7 million and $11.7 million, respectively, was recorded in “Accrued expenses and other liabilities” in our Consolidated Balance Sheets. As of March 31, 2021, our interest rate swap asset of $4.2 million was recorded in “Receivables and other assets, net” in our Consolidated Balance Sheets. For the three months ended March 31, 2021 and 2020, $2.1 million and $0.5 million of loss was reclassified from accumulated other comprehensive income (loss) into earnings and was recorded in “Interest expense” in our Consolidated Statements of Operations, respectively. As of March 31, 2021, approximately $8.0 million of our interest rate swap liability, which is included in accumulated other comprehensive income (loss), is expected to be reclassified into earnings in the next 12 months. Derivatives Not Designated as Hedging Instruments Interest rate caps As of March 31, 2021 and December 31, 2020, our interest rate cap assets were recorded in “Receivables and other assets, net” in our Consolidated Balance Sheets. Fair value losses recognized for the three months ended March 31, 2021 and 2020 were not material. These amounts are included in “Other expense” in our Consolidated Statements of Operations and “Other non-cash expense” in our Consolidated Statements of Cash Flows.
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ACCRUED EXPENSES AND OTHER LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES The following table summarizes our accrued expenses and other liabilities (excluding properties classified as discontinued operations):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying amounts and fair values of our financial instruments were as follows:
(A)The carrying amount approximates fair value. (B)Fair value based on pricing models that consider inputs including forward yield curves, cap strike rates, cap volatility and discount rates. (C)Fair value based on a discounted cash flow valuation model. Significant inputs in the model include amounts and timing of expected future cash flows and market yields which are constructed based on inputs implied from similar debt offerings. Our mortgage debt is not measured at fair value in our Consolidated Balance Sheets.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES New Senior is organized and conducts its operations to qualify as a REIT under the requirements of the Internal Revenue Code of 1986, as amended (the “Code”). However, certain of our activities are conducted through our taxable REIT subsidiary (“TRS”) and therefore are subject to federal and state income taxes at regular corporate tax rates. The following table presents the provision (benefit) for income taxes (excluding discontinued operations):
In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income by the TRS during the periods in which temporary differences become deductible before the net operating loss carryforward expires. Management believes that it is more likely than not that our net deferred tax assets will not be realized. As a result, we recorded valuation allowances against our deferred tax asset of $7.5 million and $7.6 million as of March 31, 2021 and December 31, 2020, respectively. However, the amount of the deferred tax asset considered realizable could be adjusted if (i) estimates of future taxable income during the carryforward period are reduced or increased or (ii) objective negative evidence in the form of cumulative losses is no longer present. As of March 31, 2021, our TRS had a loss carryforward of approximately $28.0 million for federal income tax purposes and $30.3 million for state income tax purposes. The federal net operating losses will begin to expire at the end of 2034. The net operating loss carryforward can generally be used to offset future taxable income, if and when it arises.
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STOCK-BASED COMPENSATION |
3 Months Ended |
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Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Amended and Restated Stock Options and Incentive Award Plans On January 1, 2019, our board of directors adopted an Amended and Restated Nonqualified Stock Option and Incentive Award Plan (the “Plan”) providing for the grant of equity-based awards, including restricted stock awards (RSAs), restricted stock units (RSUs), stock options, stock appreciation rights, performance awards and other equity-based and non-equity based awards, in each case to our directors, officers, employees, service providers, consultants and advisors. We have reserved 27,922,570 shares of our common stock for issuance under the Plan. Vesting periods for these awards generally range from to three years. Options expire ten years from the date of grant. Stock-based compensation expense totaled $2.1 million and $1.4 million for the three months ended March 31, 2021 and 2020, respectively. In March 2021, the Former Manager exercised an aggregate of 1,422,248 options and were issued an aggregate of 784,123 shares of New Senior’s common stock in a cashless exercise.
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REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE | REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE Redeemable Preferred Stock On December 31, 2018, we issued 400,000 shares of our Series A Redeemable Preferred Stock, of which 200,000 shares are outstanding as of March 31, 2021, to the private equity firm that formerly externally managed us (the “Former Manager”). The Redeemable Preferred Stock are non-voting and have a $100 liquidation preference. Holders of the Redeemable Preferred Stock are entitled to cumulative cash dividends at a rate per annum of 6.00% on the liquidation preference amount plus all accumulated and unpaid dividends. The Redeemable Preferred Stock is subject to certain terms and conditions. We may redeem, at any time, all but not less than all of the shares of Redeemable Preferred Stock for cash at a price equal to the liquidation preference amount of the Redeemable Preferred Stock plus all accumulated and unpaid dividends thereon (the “Redemption Price”). On or after December 31, 2021, the holders of a majority of the then outstanding shares of Redeemable Preferred Stock will have the right to require us to redeem all or any portion of the outstanding shares of Redeemable Preferred Stock, in each case, for cash at the Redemption Price. Due to the ability of the holders to require us to redeem the outstanding shares, the Redeemable Preferred Stock, which was initially recorded at a fair value of $40 million, is excluded from Equity and presented separately on the face of our Consolidated Balance Sheets. The carrying value of the Redeemable Preferred Stock is increased by the accumulated and unpaid dividends, and reduced by redemptions and dividend payments. Accrued dividends are treated as deductions in the calculation of net income (loss) applicable to common stockholders. The following table is a rollforward of our Redeemable Preferred Stock for the three months ended March 31, 2021:
Equity and Dividends Return of Capital Adjustment In January 2021, strike prices for outstanding options as of December 31, 2020 were reduced by $0.33 (the “2020 ROC Adjustment”), reflecting the portion of our 2020 dividends which were deemed return of capital pursuant to the terms of the Plan. In addition, 20,289 additional options were issued to the Former Manager, in order to maintain the intrinsic value of an option grant with a strike price below the 2020 ROC Adjustment. At-the-Market Equity Program On February 26, 2021, we established an at-the-market equity offering program through which we may issue and sell, from time to time, up to an aggregate of $100 million of our common stock. Sales of our common stock, if any, may be offered and sold in accordance with the Company’s instructions pursuant to a Distribution Agreement, dated February 26, 2021, between New Senior and a consortium of banks acting as sales agents. During the three months ended March 31, 2021, we did not issue any shares under the Distribution Agreement. Earnings per Common Share Basic EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. Our common stock equivalents are our outstanding stock options and equity-based compensation awards. We have certain equity awards that contain non-forfeitable rights to dividends, which are considered participating securities for the purposes of computing EPS pursuant to the two-class method, and therefore we apply the two-class method in our computation of EPS. The two-class method is an earnings allocation methodology that determines EPS for common shares and participating securities according to dividends declared or accumulated and participating rights in undistributed earnings. During periods of loss, there is no allocation required under the two-class method since the participating securities do not have a contractual obligation to fund losses. For the three months ended March 31, 2021 and 2020, basic and diluted net income (loss) per share was computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. The following table sets forth the computation of basic and diluted income (loss) per share of common stock for the three months ended March 31, 2021 and 2020:
(A)The outstanding shares used to calculate the weighted average basic shares outstanding exclude 266,139 and 493,599 restricted stock awards as of March 31, 2021 and 2020 net of forfeitures, respectively, as those shares were issued but were not vested and therefore, not considered outstanding for purposes of computing basic income (loss) per common share for the three and three months ended March 31, 2021. (B)During the three months ended March 31, 2021 and 2020, 2,572,711 and 1,527,646 dilutive share equivalents and options, respectively, were excluded as their inclusion would have been anti-dilutive given our loss position. (C)Amounts may not sum due to rounding.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As of March 31, 2021, management believes there are no material contingencies that would affect our results of operations, cash flows or financial position. Certain Obligations, Liabilities and Litigation We are and may become subject to various obligations, liabilities, investigations, inquiries and litigation assumed in connection with or arising from our on-going business, as well as acquisitions, sales, leasing and other activities. These obligations and liabilities (including the costs associated with investigations, inquiries and litigation) may be greater than expected or may not be known in advance. Any such obligations or liabilities could have a material adverse effect on our financial position, cash flows and results of operations, particularly if we are not entitled to indemnification, or if a responsible third party fails to indemnify us. Certain Tax-Related Covenants If we are treated as a successor to Drive Shack under applicable U.S. federal income tax rules, and if Drive Shack failed to qualify as a REIT for a taxable year ending on or before December 31, 2015, we could be prohibited from electing to be a REIT. Accordingly, in the separation and distribution agreement regarding our spin-off from Drive Shack, Drive Shack (i) represented that it had no knowledge of any fact or circumstance that would cause us to fail to qualify as a REIT, (ii) covenanted to use commercially reasonable efforts to cooperate with New Senior as necessary to enable us to qualify for taxation as a REIT and receive customary legal opinions concerning REIT status, including providing information and representations to us and our tax counsel with respect to the composition of Drive Shack’s income and assets, the composition of its stockholders and its operation as a REIT, and (iii) covenanted to use its reasonable best efforts to maintain its REIT status for each of Drive Shack’s taxable years ending on or before December 31, 2015 (unless Drive Shack obtains an opinion from a nationally recognized tax counsel or a private letter ruling from the Internal Revenue Service (“IRS”) to the effect that Drive Shack’s failure to maintain its REIT status will not cause us to fail to qualify as a REIT under the successor REIT rule referred to above). To date, Drive Shack has not informed us of any challenge to its REIT status for the applicable time period. Proceedings Indemnified and Defended by Third Parties From time to time, we are party to certain legal actions, regulatory investigations and claims for which third parties are contractually obligated to indemnify, defend and hold us harmless. While we are presently not being defended by any tenant and other obligated third parties in these types of matters, there is no assurance that our tenant, their affiliates or other obligated third parties will continue to defend us in these matters, or that such parties will have sufficient assets, income and access to financing to enable them to satisfy their defense and indemnification obligations to us. In addition, although we and our property managers maintain insurance programs against certain risks, including commercial general liability, property, casualty and directors’ and officers’ liability, we cannot provide assurance that such policies will be sufficient to mitigate the financial impact of any individual or group of legal actions, regulatory investigations or claims. Environmental Costs As a commercial real estate owner, we are subject to potential environmental costs. As of March 31, 2021, management is not aware of any environmental concerns that would have a material adverse effect on our financial position or results of operations. Capital Improvement and Repair Commitments We have agreed to make $1.0 million available for capital improvements during the 15 year lease period, which ends in 2030, to our triple net lease property under Watermark, none of which has been funded as of March 31, 2021. Upon funding these capital improvements, we will be entitled to a rent increase. Leases We currently lease our corporate office space located in New York, New York under an operating lease agreement. The lease requires fixed monthly rent payments, expires on June 30, 2024 and does not have any renewal option. We also currently lease equipment (e.g., dishwashers, copy machines and buses) used at certain of our managed properties under operating lease agreements. Our leases have remaining lease terms ranging from four months to 66.0 years. We do not include any renewal options in our lease terms for calculating our lease liability because as of March 31, 2021, we were not reasonably certain if we will exercise these renewal options at this time. As of March 31, 2021, our future minimum lease payments under our operating leases are as follows:
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSEffective May 3, 2021, our board of directors declared a cash dividend on our common stock of $0.065 per share for the quarter ended March 31, 2021. The dividend is payable on June 18, 2021 to stockholders of record on June 4, 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP’’) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. The consolidated financial statements include the accounts of New Senior and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. We consolidate those entities in which we have control over significant operating, financial and investing decisions of the entity. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC.
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Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP’’) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. The consolidated financial statements include the accounts of New Senior and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. We consolidate those entities in which we have control over significant operating, financial and investing decisions of the entity. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC.
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Reclassifications | Certain prior period amounts have been reclassified to conform to the current period’s presentation. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes. The ASU simplifies accounting for income taxes by eliminating certain exceptions to the general approach in ASC 740, Income Taxes, and clarifies certain aspects of the guidance for more consistent application. The simplifications relate to intraperiod tax allocations when there is a loss in continuing operations and a gain outside of continuing operations, accounting for tax law or tax rate changes and year-to-date losses in interim periods, recognition of deferred tax liability for outside basis difference when investment ownership changes, and accounting for franchise taxes that are partially based on income. Transition is generally prospective, other than the provision related to outside basis difference which is on a modified retrospective basis with the cumulative effect adjusted to retained earnings at the beginning of the period adopted, and franchise tax provision which is either full or modified retrospective. We adopted ASU 2019-12 on January 1, 2021, and the adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Rate (“LIBOR”) or another rate that is expected to be discontinued. Companies can adopt ASU 2020-04 anytime during the effective period of March 12, 2020 through December 31, 2022. We are currently assessing the provisions of ASU 2020-04 and have not made any hedge accounting elections as of March 31, 2021. If an election is made at a later date, we will apply the provisions of this guidance. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of the discontinuation of the use of LIBOR as a benchmark interest rate due to reference rate reform. We are currently evaluating the impact of this guidance.
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DISCONTINUED OPERATIONS (Tables) |
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Discontinued Operations | For the three months ended March 31, 2020, the results of operations associated with discontinued operations are as follows:
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REAL ESTATE INVESTMENTS (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments | The following table summarizes our real estate investments:
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Real Estate Intangibles | The following table summarizes our real estate intangibles:
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RECEIVABLES AND OTHER ASSETS, NET (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables and Other Assets, Net | The following table summarizes our receivables and other assets, net:
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Schedule of Future Minimum Rental Payments for Operating Leases | The following table sets forth future contracted minimum rents from the tenant of our triple net lease property, excluding contingent payment escalations, as of March 31, 2021:
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DEBT, NET (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Notes Payable, Net |
(A)The totals are reported net of deferred financing costs of $15.0 million and $16.0 million as of March 31, 2021 and December 31, 2020, respectively. (B)Substantially all of these loans have LIBOR caps that range between 3.38% and 3.75% as of March 31, 2021. (C)As of March 31, 2021, $620.0 million of total floating rate debt has been hedged using interest rate swaps, which are carried at fair value. See “Note 9 - Derivative Instruments” for more information.
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ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities | The following table summarizes our accrued expenses and other liabilities (excluding properties classified as discontinued operations):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of our financial instruments were as follows:
(A)The carrying amount approximates fair value. (B)Fair value based on pricing models that consider inputs including forward yield curves, cap strike rates, cap volatility and discount rates. (C)Fair value based on a discounted cash flow valuation model. Significant inputs in the model include amounts and timing of expected future cash flows and market yields which are constructed based on inputs implied from similar debt offerings. Our mortgage debt is not measured at fair value in our Consolidated Balance Sheets.
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INCOME TAXES (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes | The following table presents the provision (benefit) for income taxes (excluding discontinued operations):
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REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of Redeemable Preferred Stock | The following table is a rollforward of our Redeemable Preferred Stock for the three months ended March 31, 2021:
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Computation of Basic and Diluted Loss Per Share | The following table sets forth the computation of basic and diluted income (loss) per share of common stock for the three months ended March 31, 2021 and 2020:
(A)The outstanding shares used to calculate the weighted average basic shares outstanding exclude 266,139 and 493,599 restricted stock awards as of March 31, 2021 and 2020 net of forfeitures, respectively, as those shares were issued but were not vested and therefore, not considered outstanding for purposes of computing basic income (loss) per common share for the three and three months ended March 31, 2021. (B)During the three months ended March 31, 2021 and 2020, 2,572,711 and 1,527,646 dilutive share equivalents and options, respectively, were excluded as their inclusion would have been anti-dilutive given our loss position. (C)Amounts may not sum due to rounding.
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments | As of March 31, 2021, our future minimum lease payments under our operating leases are as follows:
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ORGANIZATION - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2021
USD ($)
Property
segment
state
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Mar. 31, 2020
USD ($)
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Sep. 30, 2020
segment
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Real Estate Properties [Line Items] | |||
Number of real estate properties | 103 | ||
Number of states in which properties are located | state | 36 | ||
Number of reportable segments | segment | 1 | 2 | |
COVID-19 related costs | $ | $ 0.3 | $ 0.5 | |
Managed Independent Living Properties | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 102 | ||
Extension period after initial term of property management agreements | 1 year | ||
Managed Independent Living Properties | Minimum | |||
Real Estate Properties [Line Items] | |||
Initial term of property management agreements | 5 years | ||
Percentage of property's effective gross revenues paid as property management fees | 4.50% | ||
Managed Independent Living Properties | Maximum | |||
Real Estate Properties [Line Items] | |||
Initial term of property management agreements | 10 years | ||
Percentage of property's effective gross revenues paid as property management fees | 5.00% | ||
Continuing Care Retirement Community | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties | 1 | ||
Continuing Care Retirement Community | Minimum | |||
Real Estate Properties [Line Items] | |||
Term of lease agreements | 15 years | ||
Rent increase percentage in lease agreements | 2.75% | ||
Continuing Care Retirement Community | Maximum | |||
Real Estate Properties [Line Items] | |||
Rent increase percentage in lease agreements | 3.25% |
DISCONTINUED OPERATIONS - Narrative (Details) - Discontinued Operations - Assisted Living and Memory Care Properties $ in Millions |
Feb. 10, 2020
USD ($)
Property
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of senior housing properties sold (property) | Property | 28 |
Sale price | $ | $ 385.0 |
DISCONTINUED OPERATIONS - Summary of the Loss from Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
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Expenses | ||
Discontinued operations, net | $ 0 | $ 16,885 |
Discontinued Operations | ||
Revenues | ||
Resident fees and services | 14,024 | |
Total revenues | 14,024 | |
Expenses | ||
Property operating expenses | 11,328 | |
Interest expense | 1,361 | |
Acquisition, transaction, and integration expense | 1,037 | |
General and administrative expense | 8 | |
Loss on extinguishment of debt | 3,602 | |
Other income | (204) | |
Total expenses | 17,132 | |
Loss before income taxes | (3,108) | |
Income tax benefit | (1) | |
Discontinued operations, net | $ (3,107) |
DISPOSITIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Feb. 10, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of real estate | $ 20,000 | $ 0 | $ 19,992 |
Loss on extinguishment of debt | 0 | 5,884 | |
Prepayment penalties | $ 0 | $ 4,504 | |
Secured Debt | Term Loan | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Repayments of debt | 260,200 | ||
Loss on extinguishment of debt | 3,600 | ||
Prepayment penalties | 2,500 | ||
Write off of deferred financing costs | 1,100 | ||
Discontinued Operations | Assisted Living and Memory Care Properties | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale price | $ 385,000 |
SEGMENT REPORTING - Narrative (Details) - segment |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2021 |
Sep. 30, 2020 |
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Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | 2 |
REAL ESTATE INVESTMENTS, Real Estate Assets and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
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Real Estate Investments, Net [Abstract] | ||
Gross Carrying Amount | $ 2,120,291 | $ 2,118,006 |
Accumulated depreciation | (433,249) | (417,455) |
Net real estate property | 1,687,042 | 1,700,551 |
Real Estate Intangibles [Abstract] | ||
Gross Carrying Amount | 7,642 | 7,642 |
Accumulated amortization | (2,684) | (2,595) |
Net real estate intangibles | 4,958 | 5,047 |
Land | ||
Real Estate Investments, Net [Abstract] | ||
Gross Carrying Amount | 134,643 | 134,643 |
Accumulated depreciation | 0 | 0 |
Net real estate property | 134,643 | 134,643 |
Building and improvements | ||
Real Estate Investments, Net [Abstract] | ||
Gross Carrying Amount | 1,874,723 | 1,873,132 |
Accumulated depreciation | (334,834) | (321,025) |
Net real estate property | 1,539,889 | 1,552,107 |
Furniture, fixtures and equipment | ||
Real Estate Investments, Net [Abstract] | ||
Gross Carrying Amount | 110,925 | 110,231 |
Accumulated depreciation | (98,415) | (96,430) |
Net real estate property | 12,510 | 13,801 |
Intangible lease assets | ||
Real Estate Intangibles [Abstract] | ||
Gross Carrying Amount | 7,642 | 7,642 |
Accumulated amortization | (2,684) | (2,595) |
Net real estate intangibles | $ 4,958 | $ 5,047 |
Weighted Average Remaining Amortization Period | 44 years 6 months | 44 years 1 month 6 days |
REAL ESTATE INVESTMENTS - Narrative (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
property
|
Mar. 31, 2020
USD ($)
|
|
Real Estate [Abstract] | ||
Depreciation expense | $ 15.8 | $ 17.4 |
Amortization expense | 0.1 | $ 0.1 |
Loss from catastrophes | $ 0.3 | |
Number of real estate properties impacted by winter storm | property | 21 |
RECEIVABLES AND OTHER ASSETS, NET (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Escrows held by lenders | $ 14,396 | $ 17,694 |
Straight-line rent receivable | 4,610 | 4,515 |
Prepaid expenses | 6,803 | 3,923 |
Security deposits | 2,989 | 3,037 |
Resident receivables, net | 985 | 1,151 |
Derivative asset | 4,208 | 0 |
Other assets and receivables | 6,032 | 4,572 |
Total receivables and other assets | $ 40,023 | $ 34,892 |
RECEIVABLES AND OTHER ASSETS, NET - Future Minimum Lease Payments (Details) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2021 (nine months) | $ 4,577 |
2022 | 6,233 |
2023 | 6,405 |
2024 | 6,581 |
2025 | 6,762 |
Thereafter | 32,126 |
Total future minimum rents | $ 62,684 |
DEBT, NET - Schedule of Debt, Net (Details) - Mortgage debt - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Mortgage Notes Payable [Abstract] | ||
Outstanding Face Amount | $ 1,499,998,000 | $ 1,502,124,000 |
Carrying value | $ 1,484,996,000 | 1,486,164,000 |
Weighted average maturity (years) | 5 years 1 month 6 days | |
Deferred financing costs | $ 15,000,000.0 | 16,000,000.0 |
LIBOR | Minimum | ||
Mortgage Notes Payable [Abstract] | ||
Basis spread on variable rate | 3.38% | |
LIBOR | Maximum | ||
Mortgage Notes Payable [Abstract] | ||
Basis spread on variable rate | 3.75% | |
Floating Rate | ||
Mortgage Notes Payable [Abstract] | ||
Outstanding Face Amount | $ 1,039,137,000 | 1,039,316,000 |
Carrying value | $ 1,025,792,000 | 1,025,110,000 |
Weighted average maturity (years) | 5 years 4 months 24 days | |
Floating Rate | LIBOR | Minimum | ||
Mortgage Notes Payable [Abstract] | ||
Basis spread on variable rate | 2.12% | |
Floating Rate | LIBOR | Maximum | ||
Mortgage Notes Payable [Abstract] | ||
Basis spread on variable rate | 2.75% | |
Fixed Rate | ||
Mortgage Notes Payable [Abstract] | ||
Outstanding Face Amount | $ 460,861,000 | 462,808,000 |
Carrying value | $ 459,204,000 | $ 461,054,000 |
Stated Interest Rate | 4.25% | |
Weighted average maturity (years) | 4 years 3 months 18 days | |
Designated as Hedging Instrument | Interest Rate Swap | Floating Rate | ||
Mortgage Notes Payable [Abstract] | ||
Outstanding Face Amount | $ 620,000,000.0 |
DEBT, NET - Narrative (Details) |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Feb. 29, 2020
USD ($)
Property
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 0 | $ 5,884,000 | ||
Prepayment penalties | 0 | 4,504,000 | ||
2020 Freddie Financing | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 270,000,000.0 | |||
Repayments of debt | 368,100,000 | |||
Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs | 15,000,000.0 | $ 16,000,000.0 | ||
Mortgage debt | Floating Rate | ||||
Debt Instrument [Line Items] | ||||
Carrying value of collateral | 1,200,000,000 | 1,200,000,000 | ||
Mortgage debt | Fixed Rate | ||||
Debt Instrument [Line Items] | ||||
Carrying value of collateral | 500,000,000 | $ 500,000,000 | ||
Secured Debt | 2020 Freddie Financing | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | 5,900,000 | |||
Prepayment penalties | 4,500,000 | |||
Write off of deferred financing costs | 1,400,000 | |||
Deferred financing costs | $ 3,300,000 | |||
Secured Debt | 2020 Freddie Financing | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.12% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Unused borrowing capacity fee | $ 100,000 | $ 0 | ||
Revolving Credit Facility | Amended and Restated Revolver | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 125,000,000.0 | |||
Line of credit facility, increase limit | $ 500,000,000.0 | |||
Threshold percentage that may be used for the issuance of letters of credit | 10.00% | |||
Threshold percentage that may be drawn as swing line loans | 10.00% | |||
Revolving Credit Facility | Amended and Restated Revolver | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Revolving Credit Facility | Amended and Restated Revolver | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Revolving Credit Facility | Amended and Restated Revolver | Fed Funds Effective Rate Overnight Index Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Independent Living Properties | 2020 Freddie Financing | ||||
Debt Instrument [Line Items] | ||||
Number of properties secured in debt agreement | Property | 14 |
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Aug. 31, 2020 |
May 31, 2019 |
|
Derivative [Line Items] | |||||
Derivative liability | $ 8,744,000 | $ 11,687,000 | |||
Derivative asset | 4,208,000 | 0 | |||
Interest rate cash flow hedge loss to be reclassified during the next twelve month | 8,000,000.0 | ||||
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | |||||
Derivative [Line Items] | |||||
Cash flow hedge, loss reclassified from accumulated other comprehensive income (loss) into earnings | 2,100,000 | $ (500,000) | |||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 270,000,000.0 | $ 350,000,000.0 | |||
Derivative liability | 8,700,000 | $ 11,700,000 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | Receivables and Other Assets, Net | |||||
Derivative [Line Items] | |||||
Derivative asset | $ 4,200,000 |
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accounts payable | $ 12,774 | $ 15,067 |
Security deposits payable | 2,263 | 2,303 |
Due to property managers | 6,083 | 9,782 |
Mortgage interest payable | 3,881 | 3,874 |
Deferred community fees, net | 4,882 | 5,201 |
Rent collected in advance | 1,808 | 1,735 |
Property tax payable | 4,816 | 5,754 |
Operating lease liability | 1,627 | 1,745 |
Derivative liability | 8,744 | 11,687 |
Other liabilities | 6,018 | 6,738 |
Accrued expenses and other liabilities | $ 52,896 | $ 63,886 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap | $ 4,208 | $ 0 |
Interest rate swap | 8,744 | 11,687 |
Fair Value, Inputs, Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 24,749 | 33,046 |
Restricted cash | 17,385 | 20,749 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 24,749 | 33,046 |
Restricted cash | 17,385 | 20,749 |
Fair Value, Inputs, Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap | 4,208 | 0 |
Interest rate caps | 28 | 10 |
Interest rate swap | 8,018 | 10,980 |
Fair Value, Inputs, Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap | 4,208 | 0 |
Interest rate caps | 28 | 10 |
Interest rate swap | 8,018 | 10,980 |
Fair Value, Inputs, Level 3 | Carrying Value | Mortgage debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage debt | 1,484,996 | 1,486,164 |
Fair Value, Inputs, Level 3 | Fair Value | Mortgage debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage debt | $ 1,548,241 | $ 1,524,210 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Current | ||
Federal | $ 0 | $ 0 |
State and local | 34 | 60 |
Total current provision | 34 | 60 |
Deferred | ||
Federal | 0 | 0 |
State and local | 0 | 0 |
Total deferred provision | 0 | 0 |
Total provision for income taxes | $ 34 | $ 60 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 7.5 | $ 7.6 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 28.0 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 30.3 |
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares reserved for future issuance (shares) | 27,922,570 | 27,922,570 | |
Expiration period | 10 years | ||
Share-based payment arrangement, expense | $ 2.1 | $ 1.4 | |
Options exercised (in shares) | 784,123 | ||
Former Manager | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised (in shares) | 1,422,248 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2021 |
Mar. 31, 2021 |
Feb. 26, 2021 |
Dec. 31, 2020 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | |||||
Redeemable preferred stock, shares issued (in shares) | 200,000 | 200,000 | 400,000 | ||
Redeemable preferred stock, shares outstanding (in shares) | 200,000 | 200,000 | |||
Preferred stock, liquidation preference, value | $ 100 | ||||
Preferred stock, dividend rate, percentage | 6.00% | ||||
Redeemable preferred stock, liquidation preference | $ 40,000,000 | ||||
Reduction in strike price (in dollars per share) | $ 0.33 | ||||
Equity offering program, authorized offering amount | $ 100,000,000 | ||||
Former Manager | |||||
Related Party Transaction [Line Items] | |||||
Grants in period (in shares) | 20,289 |
REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE - Rollforward of Redeemable Preferred Stock (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance as of December 31, 2020 | $ 20,253 | |
Accrued dividend | 296 | |
Paid dividend | (302) | $ (604) |
Balance as of March 31, 2021 | $ 20,247 |
REDEEMABLE PREFERRED STOCK, EQUITY AND EARNINGS PER COMMON SHARE - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|||||||
Numerator | ||||||||
Loss from continuing operations attributable to common stockholders | $ (7,607) | $ (11,646) | ||||||
Discontinued operations, net | 0 | 16,885 | ||||||
Net income (loss) attributable to common stockholders | (7,607) | 5,239 | ||||||
Less: Non-forfeitable dividends allocated to participating RSUs | (43) | (30) | ||||||
Net income (loss) available to common shares outstanding | $ (7,650) | $ 5,209 | ||||||
Denominator | ||||||||
Weighted average number of shares of common stock outstanding, Basic (in shares) | [1] | 82,815,790 | 82,386,622 | |||||
Dilutive common shares - equity awards and option (in shares) | 0 | 0 | ||||||
Weighted average number of shares of common stock outstanding, Diluted (in shares) | [1] | 82,815,790 | 82,386,622 | |||||
Basic earnings per common share: | ||||||||
Loss from continuing operations attributable to common stockholders, per basic share (in dollars per share) | [2] | $ (0.09) | $ (0.14) | |||||
Discontinued operations, net (in dollars per share) | 0 | 0.20 | ||||||
Net income (loss) attributable to common stockholders, basic (in dollars per share) | [2],[3] | (0.09) | 0.06 | |||||
Diluted earnings per common share: | ||||||||
Loss from continuing operations attributable to common stockholders, per diluted share (in dollars per share) | [2] | (0.09) | (0.14) | |||||
Discontinued operations, net (in dollars per share) | 0 | 0.20 | ||||||
Net income (loss) attributable to common stockholders, diluted (in dollars per share) | [2],[3] | $ (0.09) | $ 0.06 | |||||
Restricted stock excluded from basic weighted average share calculation | 266,139 | 493,599 | ||||||
Equity Option | ||||||||
Diluted earnings per common share: | ||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,572,711 | 1,527,646 | ||||||
|
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Watermark | |
Long-term Purchase Commitment [Line Items] | |
Lease period | 15 years |
Watermark | Additional Capital Improvements | |
Long-term Purchase Commitment [Line Items] | |
Capital improvements | $ 1.0 |
Minimum | |
Long-term Purchase Commitment [Line Items] | |
Remaining lease term | 4 months |
Maximum | |
Long-term Purchase Commitment [Line Items] | |
Remaining lease term | 66 years |
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Obligations under Operating Leases (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
2021 (nine months) | $ 484 | |
2022 | 515 | |
2023 | 472 | |
2024 | 240 | |
2025 | 8 | |
Thereafter | 305 | |
Total future minimum lease payments | 2,024 | |
Less imputed interest | (397) | |
Total operating lease liability | $ 1,627 | $ 1,745 |
SUBSEQUENT EVENTS (Details) - $ / shares |
3 Months Ended | ||
---|---|---|---|
May 03, 2021 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.065 | $ 0.13 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.065 |
Label | Element | Value | ||
---|---|---|---|---|
Restricted Cash | us-gaap_RestrictedCash | $ 20,749,000 | ||
Restricted Cash | us-gaap_RestrictedCash | 24,215,000 | ||
Restricted Cash | us-gaap_RestrictedCash | 13,330,000 | ||
Restricted Cash | us-gaap_RestrictedCash | $ 17,385,000 | ||
|
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