Concentration of Credit Risk

6 Months Ended

Jun. 30, 2017

Concentration of Credit Risk.

Concentration of Credit Risk

NOTE 10. Concentration of Credit Risk

Concentrations of credit risk arise when one or more tenants or operators related to the Company’s investments are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. The Company regularly monitors its portfolio to assess potential concentrations of risks.

Assets related to HCRMC represented 90% and 94% of the Company’s total assets as of June 30, 2017 and December 31, 2016, respectively. The Company derived 91% and 92% of its total revenues from the Master Lease with HCRMC for the three and six months ended June 30, 2017, respectively, and 94% of its total revenues from the Master Lease with HCRMC for the three and six months ended June 30, 2016.