PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Investment in Leased Real Estate Properties

A summary of our investment in leased real estate properties is as follows:


	December 31,
	2018		2017
	(in thousands)
Buildings	$	6,056,820	$	6,098,119
Land		786,174		795,874
Furniture, fixtures and equipment		447,610		440,737
Site improvements		250,917		227,150
Construction in progress		204,889		94,080
Total real estate investments		7,746,410		7,655,960
Less accumulated depreciation		(1,562,619)		(1,376,828)
Real estate investments - net	$	6,183,791	$	6,279,132

Schedule of future minimum estimated contractual rents due for the remainder of the initial terms of the leases

The future minimum estimated contractual rents due for the remainder of the initial terms of the operating leases are as follows at December 31, 2018:


	(in thousands)
2019	$	680,627
2020		698,719
2021		716,426
2022		715,427
2023		703,167
Thereafter		4,026,317
Total	$	7,540,683

Acquisitions 2018 And Other

Real Estate Properties [Line Items]

Schedule of Significant Acquisitions


	Number of			Total					Building & Site		Furniture		Initial
	Facilities		Country/	Investment(4)			Land		Improvements		& Fixtures		Annual
Period	SNF	ALF/ILF	State	(in millions)									Cash Yield(3)
Q1	—	1	UK	$	4.0	(1)	$	0.9	$	2.9	$	0.2	8.50	%
Q1	—	1	UK		5.7	(2)		1.4		4.1		0.2	8.50	%
Q1	1	—	PA		7.4			1.6		5.4		0.4	9.50	%
Q1	1	—	VA		13.2			2.4		10.5		0.3	9.50	%
Q2	5	—	TX		22.8			0.5		20.4		1.9	9.50	%
Q4	3	1	PA		35.1			4.1		29.2		1.8	9.50	%
Q4	1	—	IN		8.3			1.7		6.0		0.6	9.50	%
Q4	1	—	OH		9.2			0.8		7.9		0.5	9.50	%
Total	12	3		$	105.7		$	13.4	$	86.4	$	5.9

(1)

We recorded a non-cash deferred tax liability of approximately $0.4 million in connection with this acquisition.

(2)

We recorded a non-cash deferred tax liability of approximately $0.2 million in connection with this acquisition.

(3)

The cash yield is based on the purchase price.

(4)

All of the aforementioned acquisitions were accounted for as asset acquisitions.

Acquisitions 2017 And Other

Real Estate Properties [Line Items]

Schedule of Significant Acquisitions


	Number of			Total					Building & Site		Furniture		Initial
	Facilities		Country/	Investment(4)			Land		Improvements		& Fixtures		Annual
Period	SNF	ALF/ILF	State	(in millions)									Cash Yield (2)
Q1	—	1	VA	$	7.6		$	0.5	$	6.8	$	0.3	7.50	%
Q2	1	—	NC		8.6			0.7		7.3		0.6	9.50	%
Q2	—	18	UK		124.2	(1)		34.1		85.1		5.0	8.50	%
Q3	—	1	TX		2.3			0.7		1.5		0.1	9.25	%
Q3	15	—	IN		211.0			18.0		180.2		12.8	9.50	%
Q3	9	—	TX		19.0	(3)		1.7		15.5		1.8	18.60	%
Q4	6	—	TX		40.0			1.0		35.1		3.9	9.25	%
Total	31	20		$	412.7		$	56.7	$	331.5	$	24.5

(1)

We recorded a non-cash deferred tax liability and acquisition costs of approximately $8.2 million and $1.2 million, respectively, in connection with this acquisition.

(2)

The cash yield is based on the purchase price.

(3)

In July 2017, we transitioned nine SNFs formerly subject to a direct financing lease to another operator. As a result of terminating the direct financing lease, we wrote down the facilities to our original cost basis and recorded an impairment on the direct financing lease of approximately $1.8 million. See Note 4 – Direct Financing Leases for additional information.

(4)

All of the aforementioned acquisitions were accounted for as asset acquisitions.

Acquisitions 2016 And Other

Real Estate Properties [Line Items]

Schedule of Significant Acquisitions


	Number of			Total					Building & Site		Furniture		Initial
	Facilities		Country/	Investment(6)			Land		Improvements		& Fixtures		Annual
Period	SNF	ALF/ILF	State	(in millions)									Cash Yield (7)
Q1	—	1	UK	$	8.3		$	1.4	$	6.7	$	0.2	7.00	%
Q1	—	1	UK		6.1			0.6		5.3		0.2	7.00	%
Q1	10	—	OH, VA, MI		169.0	(2)		10.5		152.5		6.0	8.50	%
Q1	—	2	GA		20.2			0.8		18.3		1.1	7.50	%
Q1	3	—	MD		25.0			2.5		19.9		2.6	8.50	%
Q1	21	—	VA, NC		212.5			19.3		181.1		12.1	8.50	%
Q2	—	10	UK		111.9	(3)		24.8		83.9		3.2	7.00	%
Q2	—	3	TX		66.0	(4)		5.8		58.6		1.6	6.80	%
Q2	3	—	CO, MO		31.8			3.1		26.2		2.5	9.00	%
Q3	—	1	FL		4.3			2.3		1.8		0.2	8.00	%
Q3	—	1	GA		2.5			0.2		2.1		0.2	8.00	%
Q3	—	1	FL		16.5			1.8		14.3		0.4	8.00	%
Q3	1	—	SC		10.1			2.7		6.5		0.9	9.00	%
Q3	1	—	OH		9.0	(5)		—		8.6		0.4	9.00	%
Q3	31	—	FL, KY,TN		329.6	(1)		24.6		290.8		14.2	9.00	%
Total	70	20		$	1,022.8		$	100.4	$	876.6	$	45.8

(1)

Our investment includes a purchase option buyout obligation with a fair value of approximately $29.6 million. We also acquired a term loan with a fair value of approximately $37.0 million which is recorded in other investments on our Consolidated Balance Sheets. In August 2017, the purchase option was terminated and the operator used the proceeds to repay certain other investments, refer to Note – 6 Other Investments for details.

(2)

Acquired from a related party. Refer to Note – 2 Summary of Significant Accounting Policies - Related Party Transactions.

(3)

We also recorded a deferred tax asset of approximately $1.9 million in connection with the acquisition.

(4)

We paid $63.0 million in cash at closing to acquire the facilities. We paid an additional $1.5 million in April 2017 and the remaining $1.5 million in April 2018. The additional consideration paid was contractually determined and not contingent on other factors.

(5)

We paid approximately $3.5 million in cash to acquire the facility. The remainder of the purchase price (approximately $5.5 million) was funded with the redemption of an other investment note.

(6)

All of the aforementioned acquisitions were accounted for as business combinations.

(7)

The cash yield is based on the purchase price.