Subsequent Events Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 11. SUBSEQUENT EVENTS

Acadia

In July 2017, NHI acquired a 10-acre parcel of land (“Property”) for a cash price of $5,000,000. The land is adjacent to NHI’s TrustPoint Hospital in Murfreesboro, which is currently leased to Acadia Healthcare Company (“Acadia”). Terms of the ground lease provide that NHI receive a 7% lease rate from Acadia, which is expanding its operations to include an attached wing primarily situated on the adjacent land. Initially, the lease provides for a term of 10 years with a 2% annual escalator beginning in year 2019. Acadia has a purchase option on the Property during a window opening in 2020 and extending through June 2023. In connection with the ground lease, the window of Acadia’s existing purchase option on the TrustPoint Hospital facility was postponed from 2018 to 2020 and coincides with the option window on the Property.

Evolve

On August 7, 2017, we completed a first mortgage loan of $10,000,000 to Evolve Senior Living (“Evolve”) for the purchase of a 40 unit memory care facility in New Hampshire. The loan provides for annual interest of 8% and a maturity of five years plus renewal terms at the option of the borrower. NHI has the option to purchase the facility at fair market value after year two of the loan.

Credit Facility Modification

See Note 5 for information related to the August 2017 modification of our credit facility.