Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'gahr | ' |
Entity Registrant Name | 'Griffin-American Healthcare REIT II, Inc. | ' |
Entity Central Index Key | '0001455271 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 293,399,469 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Real estate investments, net | $2,609,444 | $2,523,699 |
Real estate notes receivable, net | 25,087 | 18,888 |
Cash and cash equivalents | 28,331 | 37,955 |
Accounts and other receivables, net | 6,905 | 6,906 |
Restricted cash | 14,572 | 12,972 |
Real estate and escrow deposits | 1,750 | 4,701 |
Identified intangible assets, net | 279,061 | 285,667 |
Other assets, net | 44,635 | 37,938 |
Total assets | 3,009,785 | 2,928,726 |
Liabilities: | ' | ' |
Mortgage loans payable, net | 327,435 | 329,476 |
Line of credit | 158,100 | 68,000 |
Accounts payable and accrued liabilities | 42,855 | 42,717 |
Accounts payable due to affiliates | 3,030 | 2,407 |
Derivative financial instruments | 19,089 | 16,940 |
Identified intangible liabilities, net | 11,356 | 11,693 |
Security deposits, prepaid rent and other liabilities | 72,605 | 72,262 |
Total liabilities | 634,470 | 543,495 |
Commitments and contingencies (Note 11) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 292,701,473 and 290,003,240 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 2,926 | 2,900 |
Additional paid-in capital | 2,660,810 | 2,635,175 |
Accumulated deficit | -316,666 | -277,826 |
Accumulated other comprehensive income | 26,071 | 22,776 |
Total stockholders' equity | 2,373,141 | 2,383,025 |
Noncontrolling interests (Note 13) | 2,174 | 2,206 |
Total equity | 2,375,315 | 2,385,231 |
Total liabilities and equity | $3,009,785 | $2,928,726 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, issued | 292,701,473 | 290,003,240 |
Common stock, shares outstanding | 292,701,473 | 290,003,240 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues: | ' | ' |
Real estate revenue | $72,268,000 | $40,218,000 |
Resident fees and services | 19,188,000 | 0 |
Total revenues | 91,456,000 | 40,218,000 |
Expenses: | ' | ' |
Rental expenses | 31,311,000 | 8,240,000 |
General and administrative | 8,186,000 | 4,070,000 |
Acquisition related expenses | 1,642,000 | 3,605,000 |
Depreciation and amortization | 33,601,000 | 14,818,000 |
Total expenses | 74,740,000 | 30,733,000 |
Income from operations | 16,716,000 | 9,485,000 |
Interest expense (including amortization of deferred financing costs and debt discount/premium): | ' | ' |
Interest expense | -5,093,000 | -4,077,000 |
Gain in fair value of derivative financial instruments | 50,000 | 89,000 |
Foreign currency and derivative loss | -2,222,000 | 0 |
Interest income | 3,000 | 3,000 |
Income before income taxes | 9,454,000 | 5,500,000 |
Income tax benefit | 632,000 | 0 |
Net income | 10,086,000 | 5,500,000 |
Less: net income attributable to noncontrolling interests | -13,000 | -4,000 |
Net income attributable to controlling interest | 10,073,000 | 5,496,000 |
Net income per common share attributable to controlling interest b basic and diluted | $0.03 | $0.04 |
Weighted average number of common shares outstanding b basic and diluted | 291,633,921 | 124,240,955 |
Distributions declared per common share | $0.17 | $0.17 |
Other comprehensive Income: | ' | ' |
Gains on intra-entity foreign currency transactions that are of a long-term investment nature | 3,194,000 | 0 |
Foreign currency translation adjustments | 104,000 | 0 |
Total other comprehensive income | 3,298,000 | 0 |
Comprehensive income | 13,384,000 | 5,500,000 |
Less: comprehensive income attributable to noncontrolling interests | -16,000 | -4,000 |
Comprehensive income attributable to controlling interest | $13,368,000 | $5,496,000 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Total Stockholders' Equity [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2012 | $860,746,000 | $860,307,000 | $1,132,000 | $1,010,152,000 | ($150,977,000) | ' | $439,000 |
Beginning balance, Shares at Dec. 31, 2012 | ' | ' | 113,199,988 | ' | ' | ' | ' |
Stock issued during period, shares, new issues | ' | ' | 19,457,984 | ' | ' | ' | ' |
Stock issued during period, value, new issues | 198,468,000 | 198,468,000 | 195,000 | 198,273,000 | ' | ' | ' |
Offering costs b common stock | -20,255,000 | -20,255,000 | ' | -20,255,000 | ' | ' | ' |
Issuance of common stock under the DRIP | 10,129,000 | 10,129,000 | 10,000 | 10,119,000 | ' | ' | ' |
Issuance of common stock under the DRIP, shares | 1,043,214 | ' | 1,043,214 | ' | ' | ' | ' |
Repurchase of common stock | -2,700,000 | -2,700,000 | -3,000 | -2,697,000 | ' | ' | ' |
Repurchase of common stock, shares | ' | ' | -279,992 | ' | ' | ' | ' |
Amortization of nonvested common stock compensation | 26,000 | 26,000 | ' | 26,000 | ' | ' | ' |
Issuance of limited partnership units | 87,000 | 4,000 | ' | 4,000 | ' | ' | 83,000 |
Offering costs b limited partnership units | -9,000 | -9,000 | ' | -9,000 | ' | ' | ' |
Distributions to noncontrolling interests | -10,000 | ' | ' | ' | ' | ' | -10,000 |
Distributions declared | -20,843,000 | -20,843,000 | ' | ' | -20,843,000 | ' | ' |
Net income | 5,500,000 | 5,496,000 | ' | ' | 5,496,000 | ' | 4,000 |
Other comprehensive income | 0 | ' | ' | ' | ' | ' | ' |
Ending balance at Mar. 31, 2013 | 1,031,139,000 | 1,030,623,000 | 1,334,000 | 1,195,613,000 | -166,324,000 | 0 | 516,000 |
Ending balance, Shares at Mar. 31, 2013 | ' | ' | 133,421,194 | ' | ' | ' | ' |
Beginning balance at Dec. 31, 2013 | 2,385,231,000 | 2,383,025,000 | 2,900,000 | 2,635,175,000 | -277,826,000 | 22,776,000 | 2,206,000 |
Beginning balance, Shares at Dec. 31, 2013 | ' | ' | 290,003,240 | ' | ' | ' | ' |
Stock issued during period, value, acquisitions | 157,000 | 157,000 | 0 | 157,000 | ' | ' | ' |
Stock issued during period, shares, acquisitions | ' | ' | 17,066 | ' | ' | ' | ' |
Offering costs b common stock | -3,000 | -3,000 | ' | -3,000 | ' | ' | ' |
Issuance of vested and nonvested restricted common stock | 167,000 | 167,000 | ' | 167,000 | ' | ' | ' |
Issuance of vested and nonvested restricted common stock, shares | ' | ' | 81,540 | ' | ' | ' | ' |
Issuance of common stock under the DRIP | 27,411,000 | 27,411,000 | 28,000 | 27,383,000 | ' | ' | ' |
Issuance of common stock under the DRIP, shares | 2,823,040 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | -2,130,000 | -2,130,000 | -2,000 | -2,128,000 | ' | ' | ' |
Repurchase of common stock, shares | ' | ' | -223,413 | ' | ' | ' | ' |
Amortization of nonvested common stock compensation | 59,000 | 59,000 | ' | 59,000 | ' | ' | ' |
Distributions to noncontrolling interests | -48,000 | ' | ' | ' | ' | ' | -48,000 |
Distributions declared | -48,913,000 | -48,913,000 | ' | ' | -48,913,000 | ' | ' |
Net income | 10,086,000 | 10,073,000 | ' | ' | 10,073,000 | ' | 13,000 |
Other comprehensive income | 3,298,000 | 3,295,000 | ' | ' | ' | 3,295,000 | 3,000 |
Ending balance at Mar. 31, 2014 | $2,375,315,000 | $2,373,141,000 | $2,926,000 | $2,660,810,000 | ($316,666,000) | $26,071,000 | $2,174,000 |
Ending balance, Shares at Mar. 31, 2014 | ' | ' | 292,701,473 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $10,086,000 | $5,500,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization (including deferred financing costs, above/below market leases, leasehold interests, above market leasehold interests, debt discount/premium, closing costs and origination fees) | 34,246,000 | 15,386,000 |
Deferred rent | -5,973,000 | -2,694,000 |
Stock based compensation | 226,000 | 26,000 |
Acquisition fees paid in stock | 67,000 | 139,000 |
Bad debt expense, net | -112,000 | 105,000 |
Unrealized foreign currency loss | 93,000 | 0 |
Change in fair value of contingent consideration | -38,000 | 458,000 |
Changes in fair value of derivative financial instruments | 2,149,000 | -89,000 |
Gain on property insurance settlement | -3,000 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts and other receivables | 114,000 | -166,000 |
Other assets | -1,519,000 | -536,000 |
Accounts payable and accrued liabilities | 1,041,000 | -47,000 |
Accounts payable due to affiliates | 639,000 | -32,000 |
Security deposits, prepaid rent and other liabilities | -688,000 | -6,000 |
Net cash provided by operating activities | 40,328,000 | 18,044,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Acquisition of real estate operating properties | -107,987,000 | -86,179,000 |
Advances on real estate notes receivable | -6,216,000 | -3,385,000 |
Closing costs and origination fees on real estate notes receivable, net | 64,000 | -84,000 |
Capital expenditures | -1,689,000 | -425,000 |
Restricted cash | -1,600,000 | -748,000 |
Real estate and escrow deposits | 2,951,000 | -601,000 |
Proceeds from property insurance settlement | 8,000 | 0 |
Net cash used in investing activities | -114,469,000 | -91,422,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Payments on mortgage loans payable | -1,446,000 | -1,135,000 |
Borrowings under the line of credit | 123,500,000 | 77,900,000 |
Payments under the line of credit | -33,400,000 | -244,000,000 |
Proceeds from issuance of common stock | 0 | 199,409,000 |
Deferred financing costs | -5,000 | -69,000 |
Contingent consideration related to acquisition of real estate | -351,000 | -1,047,000 |
Repurchase of common stock | -2,130,000 | -2,700,000 |
Distributions to noncontrolling interests | -48,000 | -7,000 |
Purchase of noncontrolling interest | -6,000 | 0 |
Security deposits | -6,000 | -1,979,000 |
Payment of offering costs b common stock | -35,000 | -20,517,000 |
Payment of offering costs b limited partnership units | 0 | -70,000 |
Distributions paid | -21,344,000 | -9,543,000 |
Net cash provided by (used in) financing activities | 64,729,000 | -3,758,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -9,412,000 | -77,136,000 |
EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH AND CASH EQUIVALENTS | -212,000 | 0 |
CASH AND CASH EQUIVALENTS - Beginning of period | 37,955,000 | 94,683,000 |
CASH AND CASH EQUIVALENTS - End of period | 28,331,000 | 17,547,000 |
Cash paid for: | ' | ' |
Interest | 4,825,000 | 3,911,000 |
Income taxes | 555,000 | 0 |
Investing Activities: | ' | ' |
Accrued capital expenditures | 1,861,000 | 1,096,000 |
Tenant improvement overage | 664,000 | 0 |
The following represents the increase in certain assets and liabilities in connection with our acquisitions of operating properties: | ' | ' |
Other assets | 62,000 | 124,000 |
Mortgage loans payable, net | 0 | 7,088,000 |
Accounts payable and accrued liabilities | 254,000 | 476,000 |
Security deposits, prepaid rent and other liabilities | 443,000 | 332,000 |
Financing Activities: | ' | ' |
Issuance of common stock under the DRIP | 27,411,000 | 10,129,000 |
Issuance of common stock for acquisitions | 90,000 | 0 |
Distributions declared but not paid b common stock | 16,902,000 | 7,562,000 |
Distributions declared but not paid b limited partnership units | 16,000 | 3,000 |
Issuance of limited partnership units | 0 | 87,000 |
Accrued offering costs b common stock | 0 | 142,000 |
Accrued offering costs b limited partnership units | 0 | 3,000 |
Receivable from transfer agent | 0 | 2,345,000 |
Accrued deferred financing costs | $2,000 | $27,000 |
Organization_and_Description_o
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Description of Business | ' |
Organization and Description of Business | |
Griffin-American Healthcare REIT II, Inc., a Maryland corporation, was incorporated on January 7, 2009 and therefore we consider that our date of inception. We were initially capitalized on February 4, 2009. We invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings and healthcare-related facilities. We may also originate and acquire secured loans and real estate-related investments. We also operate healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a "RIDEA" structure (the provisions of the Internal Revenue Code of 1986, as amended, or the Code, authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We generally seek investments that produce current income. We qualified to be taxed as a real estate investment trust, or REIT, under the Code for federal income tax purposes beginning with our taxable year ended December 31, 2010 and we intend to continue to be taxed as a REIT. | |
As of February 14, 2013, the termination date of our initial public offering, or our initial offering, we had received and accepted subscriptions in our initial offering for 123,179,064 shares of our common stock, or $1,233,333,000, and a total of $40,167,000 in distributions were reinvested and 4,205,920 shares of our common stock were issued pursuant to the distribution reinvestment plan, or the DRIP. | |
As of October 30, 2013, the termination date of our follow-on public offering, or our follow-on offering, we had received and accepted subscriptions in our follow-on offering for 157,622,743 shares of our common stock, or $1,604,996,000, and a total of $42,713,000 in distributions were reinvested and 4,398,862 shares of our common stock were issued pursuant to the DRIP. | |
We conduct substantially all of our operations through Griffin-American Healthcare REIT II Holdings, LP, or our operating partnership. Until January 6, 2012, we were externally advised by Grubb & Ellis Healthcare REIT II Advisor, LLC, or our former advisor, pursuant to an advisory agreement, as amended and restated, between us and our former advisor. Effective January 7, 2012, we are externally advised by Griffin-American Healthcare REIT Advisor, LLC, or Griffin-American Advisor, or our advisor, pursuant to an advisory agreement, or the Advisory Agreement, between us and our advisor. The Advisory Agreement had an initial one-year term, but was subject to successive one year renewals upon mutual consent of the parties. On January 6, 2014, the Advisory Agreement was renewed pursuant to the mutual consent of the parties for a term of six months and expires on July 6, 2014. Our advisor delegates advisory duties to Griffin-American Healthcare REIT Sub-Advisor, LLC, or Griffin-American Sub-Advisor, or our sub-advisor. Griffin-American Sub-Advisor is jointly owned by American Healthcare Investors LLC, or American Healthcare Investors, and Griffin Capital Corporation, or Griffin Capital, or our co-sponsors. Our advisor, through our sub-advisor, uses its best efforts, subject to the oversight, review and approval of our board of directors, to, among other things, research, identify, review and make investments in and dispositions of properties, real estate-related investments and securities on our behalf consistent with our investment policies and objectives. Our advisor also provides marketing, sales and client services on our behalf. Our advisor performs its duties and responsibilities under the Advisory Agreement as our fiduciary. Our sub-advisor performs its duties and responsibilities pursuant to a sub-advisory agreement with our advisor and also acts as our fiduciary. Collectively, we refer to our advisor and our sub-advisor as our advisor entities. Griffin Capital Securities, Inc., or Griffin Securities, or our dealer manager, an affiliate of Griffin Capital, served as our dealer manager in our initial offering effective as of January 7, 2012 and in our follow-on offering. We are not affiliated with Griffin Capital, Griffin-American Advisor or Griffin Securities; however, we are affiliated with Griffin-American Sub-Advisor and American Healthcare Investors. | |
We currently operate through five reportable business segments — medical office buildings, hospitals, skilled nursing facilities, senior housing and senior housing–RIDEA. As of March 31, 2014, we had completed 73 acquisitions comprising 286 buildings and approximately 11,111,000 square feet of gross leasable area, or GLA, for an aggregate purchase price of $2,890,361,000. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
The summary of significant accounting policies presented below is designed to assist in understanding our condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, in all material respects, and have been consistently applied in preparing our accompanying condensed consolidated financial statements. | |
Basis of Presentation | |
Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership, the wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries and any variable interest entities, or VIEs, as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810, which we have concluded should be consolidated pursuant to ASC Topic 810. | |
We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the properties acquired on our behalf. We are the sole general partner of our operating partnership and as of March 31, 2014 and December 31, 2013, we owned greater than a 99.90% general partnership interest therein. On January 4, 2012, our advisor contributed $2,000 to acquire 200 limited partnership units of our operating partnership and as such, as of March 31, 2014 and December 31, 2013, owns less than a 0.01% noncontrolling limited partnership interest in our operating partnership. Between December 31, 2012 and July 16, 2013, 12 investors contributed their interests in 15 buildings in exchange for 281,600 limited partnership units in our operating partnership. As of March 31, 2014 and December 31, 2013, these investors collectively owned less than a 0.10% noncontrolling limited partnership interest in our operating partnership. Because we are the sole general partner and a limited partner of our operating partnership and have unilateral control over its management and major operating decisions, the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All significant intercompany accounts and transactions are eliminated in consolidation. | |
Interim Unaudited Financial Data | |
Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments, which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. | |
In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2013 Annual Report on Form 10-K/A, as filed with the SEC on March 21, 2014. | |
Use of Estimates | |
The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. | |
Allowance for Uncollectible Accounts | |
Tenant receivables and unbilled deferred rent receivables are carried net of an allowance for uncollectible amounts. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. We maintain an allowance for deferred rent receivables arising from the straight line recognition of rents. Such allowance is charged to bad debt expense which is included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income. Our determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant's financial condition, security deposits, letters of credit, lease guarantees and current economic conditions and other relevant factors. | |
As of March 31, 2014 and December 31, 2013, we had $210,000 and $323,000, respectively, in allowance for uncollectible accounts which was determined necessary to reduce receivables to our estimate of the amount recoverable. For the three months ended March 31, 2014 and 2013, $0 and $91,000, respectively, of our receivables were directly written off to bad debt expense. As of March 31, 2014 and December 31, 2013, we did not have an allowance for uncollectible accounts for deferred rent receivables. For the three months ended March 31, 2014 and 2013, $1,000 and $11,000, respectively, of our deferred rent receivables were directly written off to bad debt expense. | |
Income Taxes | |
We qualified and elected to be taxed as a REIT under the Code beginning with our taxable year ended December 31, 2010. To maintain our qualification as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90.0% of our annual taxable income, excluding net capital gains, to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. | |
If we fail to maintain our qualification as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service, or the IRS, grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. | |
We may be subject to certain state and local income taxes on our income, property or net worth in some jurisdictions, and in certain circumstances we may also be subject to federal excise taxes on undistributed income. In addition, certain activities that we undertake are conducted by subsidiaries which we elected to be treated as taxable REIT subsidiaries, or TRSs, to allow us to provide services that would otherwise be considered impermissible for REITs. Also, we have real estate investments in the United Kingdom, which does not recognize REITs and does not accord REIT status under its tax laws. Accordingly, we recognize income tax benefit (expense) for the federal, state and local income taxes incurred by our TRSs and foreign income taxes for our real estate investments in the United Kingdom. | |
We follow ASC Topic 740, Income Taxes, to recognize, measure, present and disclose in our condensed consolidated financial statements uncertain tax positions that we have taken or expect to take on a tax return. We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would be sustained (including the impact of appeals, as applicable), assuming the applicable taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of March 31, 2014 and 2013, we did not have any tax benefits or liabilities for uncertain tax positions that we believe should be recognized in our condensed consolidated financial statements. | |
We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes us to change our judgment about the realizability of the related deferred tax asset, is also included in income tax benefit (expense) in our accompanying condensed consolidated statements of operations and comprehensive income when such changes occur. Deferred tax assets, net of valuation allowances are included in other assets in our accompanying condensed consolidated balance sheets. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes us to change our judgment about expected future tax consequences of events, is recorded in income tax benefit (expense) in our accompanying condensed consolidated statements of operations and comprehensive income when such changes occur. Deferred tax liabilities are included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets. | |
See Note 15, Income Taxes, for a further discussion. | |
Recently Issued Accounting Pronouncement | |
In April 2014, the FASB issued Accounting Standards Update, or ASU, 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08, which amends the definition of a discontinued operation to raise the threshold for disposals to qualify as discontinued operations and requires additional disclosures about disposal transactions. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component or group of components either (i) has been disposed of or (ii) is classified as held for sale. In addition, ASU 2014-08 requires additional disclosures about both (i) a disposal transaction that meets the definition of a discontinued operation and (ii) an individually significant component of an entity that is disposed of or held for sale that does not qualify for discontinued operations presentation in the financial statements. We anticipate that the majority of our property dispositions will not be classified as discontinued operations. ASU 2014-08 is effective prospectively for interim and annual reporting periods beginning after December 15, 2014 with early adoption permitted. We early adopted ASU 2014-08 on January 1, 2014, which did not have an impact on our condensed consolidated financial statements. |
Real_Estate_Investments_Net
Real Estate Investments, Net | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||
Real Estate Investments, Net | ' | ||||||||||||||||||
Real Estate Investments, Net | |||||||||||||||||||
Our real estate investments, net consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Building and improvements | $ | 2,280,810,000 | $ | 2,189,345,000 | |||||||||||||||
Land | 428,642,000 | 414,179,000 | |||||||||||||||||
Furniture, fixtures and equipment | 6,420,000 | 6,410,000 | |||||||||||||||||
2,715,872,000 | 2,609,934,000 | ||||||||||||||||||
Less: accumulated depreciation | (106,428,000 | ) | (86,235,000 | ) | |||||||||||||||
$ | 2,609,444,000 | $ | 2,523,699,000 | ||||||||||||||||
Depreciation expense for the three months ended March 31, 2014 and 2013 was $20,647,000 and $9,901,000, respectively. In addition to the acquisitions discussed below, for the three months ended March 31, 2014 and 2013, we had capital expenditures of $2,610,000 and $455,000, respectively, on our medical office buildings, $81,000 and $0, respectively, on our skilled nursing facilities, $0 and $3,000, respectively, on our senior housing facilities and $10,000 and $0, respectively, on our senior housing–RIDEA facilities. We did not have any capital expenditures on our hospitals for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||
We reimburse our advisor entities or their affiliates for acquisition expenses related to selecting, evaluating, acquiring and investing in properties. The reimbursement of acquisition expenses, acquisition fees and real estate commissions and other fees paid to unaffiliated parties will not exceed, in the aggregate, 6.0% of the contract purchase price or total development costs, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors. For the three months ended March 31, 2014 and 2013, such fees and expenses did not exceed 6.0% of the contract purchase price of our acquisitions. | |||||||||||||||||||
Acquisitions in 2014 | |||||||||||||||||||
For the three months ended March 31, 2014, we completed four property acquisitions comprising seven buildings from unaffiliated parties. The aggregate purchase price of these properties was $104,650,000 and we incurred $2,721,000 to our advisor entities and their affiliates in acquisition fees in connection with these property acquisitions. The following is a summary of our property acquisitions for the three months ended March 31, 2014: | |||||||||||||||||||
Acquisition(1) | Location | Type | Date Acquired | Purchase | Line of | Acquisition Fee(3) | |||||||||||||
Price | Credit(2) | ||||||||||||||||||
Dux MOB Portfolio(4) | Chillicothe, OH | Medical Office | 1/9/14 | $ | 25,150,000 | $ | 23,500,000 | $ | 654,000 | ||||||||||
North Carolina ALF Portfolio(5) | Durham, NC | Senior Housing | 2/6/14 | 21,000,000 | 21,600,000 | 546,000 | |||||||||||||
Pennsylvania SNF Portfolio(6) | Royersford, PA | Skilled Nursing | 3/6/14 | 39,000,000 | 40,530,000 | 1,014,000 | |||||||||||||
Eagle Carson City MOB | Carson City, NV | Medical Office | 3/19/14 | 19,500,000 | 11,000,000 | 507,000 | |||||||||||||
Total | $ | 104,650,000 | $ | 96,630,000 | $ | 2,721,000 | |||||||||||||
___________ | |||||||||||||||||||
-1 | We own 100% of our properties acquired in 2014. | ||||||||||||||||||
-2 | Represents borrowings under our unsecured revolving line of credit, as defined in Note 9, Line of Credit, at the time of acquisition. We periodically advance funds and pay down our unsecured revolving line of credit as needed. See Note 9, Line of Credit, for a further discussion. | ||||||||||||||||||
-3 | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. | ||||||||||||||||||
-4 | On January 9, 2014, we added one additional building to our existing Dux MOB Portfolio. The other 14 buildings were purchased in December 2013. | ||||||||||||||||||
-5 | On February 6, 2014, we added one additional building to our existing North Carolina ALF Portfolio. The other five buildings were purchased in December 2012. | ||||||||||||||||||
-6 | On March 6, 2014, we added four additional buildings to our existing Pennsylvania SNF Portfolio. The other two buildings were purchased in April 2013. |
Real_Estate_Note_Receivable_Ne
Real Estate Note Receivable, Net | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Real Estate Notes Receivable [Abstract] | ' | ||||||||||||||||||||||
Real Estate Notes Receivable, Net | ' | ||||||||||||||||||||||
Real Estate Notes Receivable, Net | |||||||||||||||||||||||
Real estate notes receivable, net consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||
Outstanding Balance(2) | |||||||||||||||||||||||
Notes Receivable | Origination Date | Maturity Date | Contractual Interest Rate(1) | Maximum Advances Available | March 31, 2014 | December 31, 2013 | Acquisition Fee(3) | ||||||||||||||||
Location of Related Property or Collateral | |||||||||||||||||||||||
UK Development Facility(4) | |||||||||||||||||||||||
United Kingdom | 9/11/13 | various | 7.50% | $ | 111,133,000 | $ | 18,288,000 | $ | 16,593,000 | $ | 353,000 | ||||||||||||
Kissito Note | |||||||||||||||||||||||
Roanoke, VA | 9/20/13 | 3/19/15 | 7.25% | $ | 4,400,000 | 2,845,000 | 2,002,000 | 57,000 | |||||||||||||||
Landmark Naples Note | |||||||||||||||||||||||
Naples, FL | 3/28/14 | 3/28/16 | 6.00% | $ | 18,900,000 | 3,801,000 | — | 76,000 | |||||||||||||||
24,934,000 | 18,595,000 | $ | 486,000 | ||||||||||||||||||||
Unamortized closing costs and origination fees, net | 153,000 | 293,000 | |||||||||||||||||||||
Real estate notes receivable, net | $ | 25,087,000 | $ | 18,888,000 | |||||||||||||||||||
___________ | |||||||||||||||||||||||
-1 | Represents the per annum interest rate in effect as of March 31, 2014. | ||||||||||||||||||||||
-2 | Outstanding balance represents the original principal balance, increased by any subsequent advances and decreased by any subsequent principal paydowns, and only requires monthly interest payments. The UK Development Facility is subject to certain prepayment restrictions if repaid on or before the maturity date. | ||||||||||||||||||||||
-3 | Our sub-advisor was paid, as compensation for services in connection with real estate-related investments, an acquisition fee of 2.00% of the total amount advanced through March 31, 2014. | ||||||||||||||||||||||
-4 | We entered into the UK Development Facility agreement on July 6, 2013, which was effective upon the acquisition of UK Senior Housing Portfolio on September 11, 2013. There are various maturity dates depending upon the timing of advances; however, the maturity date will be no later than March 10, 2022. Based on the currency exchange rate as of March 31, 2014, the maximum amount of advances available was £66,691,000, or approximately $111,133,000, and the outstanding balance as of March 31, 2014 was £10,974,000, or approximately $18,288,000. | ||||||||||||||||||||||
Pursuant to certain terms and conditions which may or may not be satisfied, we have the option to purchase the properties securing the UK Development Facility, Kissito Note and Landmark Naples Note. | |||||||||||||||||||||||
The following shows the change in the carrying amount of real estate notes receivable, net for the three months ended March 31, 2014 and 2013: | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Beginning balance | $ | 18,888,000 | $ | 5,182,000 | |||||||||||||||||||
Additions: | |||||||||||||||||||||||
Advances on real estate notes receivable | 6,216,000 | 3,385,000 | |||||||||||||||||||||
Closing costs and origination fees, net | (64,000 | ) | 68,000 | ||||||||||||||||||||
Unrealized foreign currency gain from remeasurement | 123,000 | — | |||||||||||||||||||||
Deductions: | |||||||||||||||||||||||
Amortization of closing costs and origination fees | (76,000 | ) | (25,000 | ) | |||||||||||||||||||
Ending balance | $ | 25,087,000 | $ | 8,610,000 | |||||||||||||||||||
Amortization expense on closing costs and origination fees for the three months ended March 31, 2014 and 2013 was recorded against real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income. |
Identified_Intangible_Assets_N
Identified Intangible Assets, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | |||||||
Identified Intangible Assets, Net | ' | |||||||
Identified Intangible Assets, Net | ||||||||
Identified intangible assets, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Tenant relationships, net of accumulated amortization of $14,480,000 and $11,128,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 17.6 years and 17.8 years as of March 31, 2014 and December 31, 2013, respectively) | $ | 132,476,000 | $ | 131,816,000 | ||||
In-place leases, net of accumulated amortization of $31,048,000 and $23,364,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 8.1 years as of March 31, 2014 and December 31, 2013) | 116,592,000 | 123,780,000 | ||||||
Leasehold interests, net of accumulated amortization of $729,000 and $658,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 63.6 years and 63.8 years as of March 31, 2014 and December 31, 2013, respectively) | 16,006,000 | 16,077,000 | ||||||
Above market leases, net of accumulated amortization of $3,931,000 and $3,466,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 6.4 years and 6.6 years as of March 31, 2014 and December 31, 2013, respectively) | 13,396,000 | 13,400,000 | ||||||
Defeasible interest, net of accumulated amortization of $32,000 and $29,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 39.5 years and 39.8 years as of March 31, 2014 and December 31, 2013, respectively) | 591,000 | 594,000 | ||||||
$ | 279,061,000 | $ | 285,667,000 | |||||
Amortization expense for the three months ended March 31, 2014 and 2013 was $13,635,000 and $5,500,000, respectively, which included $743,000 and $558,000, respectively, of amortization recorded against real estate revenue for above market leases and $71,000 and $70,000, respectively, of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||
The aggregate weighted average remaining life of the identified intangible assets is 15.8 and 15.7 years as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, estimated amortization expense on the identified intangible assets for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | ||||||||
Year | Amount | |||||||
2014 | $ | 38,874,000 | ||||||
2015 | 25,794,000 | |||||||
2016 | 23,583,000 | |||||||
2017 | 21,517,000 | |||||||
2018 | 19,721,000 | |||||||
Thereafter | 149,572,000 | |||||||
$ | 279,061,000 | |||||||
Other_Assets_Net
Other Assets, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Assets [Abstract] | ' | |||||||
Other Assets, Net | ' | |||||||
Other Assets, Net | ||||||||
Other assets, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deferred rent receivables | $ | 30,491,000 | $ | 24,494,000 | ||||
Deferred financing costs, net of accumulated amortization of $4,379,000 and $3,627,000 as of March 31, 2014 and December 31, 2013, respectively | 5,534,000 | 6,282,000 | ||||||
Prepaid expenses and deposits | 3,196,000 | 2,485,000 | ||||||
Lease commissions, net of accumulated amortization of $517,000 and $393,000 as of March 31, 2014 and December 31, 2013, respectively | 5,414,000 | 4,677,000 | ||||||
$ | 44,635,000 | $ | 37,938,000 | |||||
Amortization expense on lease commissions for the three months ended March 31, 2014 and 2013 was $133,000 and $45,000, respectively. Amortization expense on deferred financing costs for the three months ended March 31, 2014 and 2013 was $752,000 and $459,000, respectively. Amortization expense on deferred financing costs is recorded to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||
Estimated amortization expense on deferred financing costs and lease commissions as of March 31, 2014 for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | ||||||||
Year | Amount | |||||||
2014 | $ | 2,685,000 | ||||||
2015 | 2,124,000 | |||||||
2016 | 979,000 | |||||||
2017 | 807,000 | |||||||
2018 | 714,000 | |||||||
Thereafter | 3,639,000 | |||||||
$ | 10,948,000 | |||||||
Mortgage_Loans_Payable_Net
Mortgage Loans Payable, Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
Mortgage Loans Payable, Net | ' | ||||||||
Mortgage Loans Payable, Net | |||||||||
Mortgage loans payable were $314,276,000 ($327,435,000, net of discount and premium) and $315,722,000 ($329,476,000, net of discount and premium) as of March 31, 2014 and December 31, 2013, respectively. | |||||||||
As of March 31, 2014, we had 42 fixed rate and three variable rate mortgage loans payable with effective interest rates ranging from 1.26% to 6.60% per annum and a weighted average effective interest rate of 4.87% per annum based on interest rates in effect as of March 31, 2014. The mortgage loans payable as of March 31, 2014 had maturity dates ranging from July 1, 2014 to September 1, 2047. As of March 31, 2014, we had $298,385,000 ($311,749,000, net of discount and premium) of fixed rate debt, or 94.9% of mortgage loans payable, at a weighted average effective interest rate of 5.00% per annum, and $15,891,000 ($15,686,000, net of discount) of variable rate debt, or 5.1% of mortgage loans payable, at a weighted average effective interest rate of 2.56% per annum. | |||||||||
As of December 31, 2013, we had 42 fixed rate and three variable rate mortgage loans payable with effective interest rates ranging from 1.27% to 6.60% per annum and a weighted average effective interest rate of 4.87% per annum based on interest rates in effect as of December 31, 2013. The mortgage loans payable as of December 31, 2013 had maturity dates ranging from March 1, 2014 to September 1, 2047. As of December 31, 2013, we had $299,680,000 ($313,646,000, net of discount and premium) of fixed rate debt, or 94.9% of mortgage loans payable, at a weighted average effective interest rate of 5.00% per annum, and $16,042,000 ($15,830,000, net of discount) of variable rate debt, or 5.1% of mortgage loans payable, at a weighted average effective interest rate of 2.57% per annum. | |||||||||
We are required by the terms of certain loan documents to meet certain covenants, such as occupancy ratios, leverage ratios, net worth ratios, debt service coverage ratio, liquidity ratios, operating cash flow to fixed charges ratios, distribution ratios and reporting requirements. As of March 31, 2014 and December 31, 2013, we were in compliance with all such covenants and requirements. | |||||||||
Mortgage loans payable, net consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Total fixed rate debt | $ | 298,385,000 | $ | 299,680,000 | |||||
Total variable rate debt | 15,891,000 | 16,042,000 | |||||||
314,276,000 | 315,722,000 | ||||||||
Less: discount | (208,000 | ) | (216,000 | ) | |||||
Add: premium | 13,367,000 | 13,970,000 | |||||||
Mortgage loans payable, net | $ | 327,435,000 | $ | 329,476,000 | |||||
The following shows the change in the carrying amount of mortgage loans payable, net for the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 329,476,000 | $ | 291,052,000 | |||||
Additions: | |||||||||
Assumption of mortgage loans payable, net | — | 7,088,000 | |||||||
Deductions: | |||||||||
Scheduled principal payments on mortgage loans payable | (1,446,000 | ) | (1,136,000 | ) | |||||
Amortization of premium/discount on mortgage loans payable | (595,000 | ) | (384,000 | ) | |||||
Ending balance | $ | 327,435,000 | $ | 296,620,000 | |||||
As of March 31, 2014, the principal payments due on our mortgage loans payable for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | |||||||||
Year | Amount | ||||||||
2014 | $ | 13,930,000 | |||||||
2015 | 41,968,000 | ||||||||
2016 | 50,318,000 | ||||||||
2017 | 24,779,000 | ||||||||
2018 | 40,064,000 | ||||||||
Thereafter | 143,217,000 | ||||||||
$ | 314,276,000 | ||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||
Derivative Financial Instruments | ||||||||||||||||
ASC Topic 815 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. We utilize derivatives such as fixed interest rate swaps to add stability to interest expense and to manage our exposure to interest rate movements. We also use derivative instruments, such as foreign currency forward contracts, to mitigate the effects of the foreign currency fluctuations on future cash flows. Consistent with ASC Topic 815, we record derivative financial instruments in our accompanying condensed consolidated balance sheets as either an asset or a liability measured at fair value. ASC Topic 815 permits special hedge accounting if certain requirements are met. Hedge accounting allows for gains and losses on derivatives designated as hedges to be offset by the change in value of the hedged item or items or to be deferred in other comprehensive income. | ||||||||||||||||
As of March 31, 2014, no derivatives were designated as hedges. Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and foreign currency fluctuations, but do not meet the strict hedge accounting requirements of ASC Topic 815. Changes in the fair value of interest rate derivative financial instruments are recorded as a component of interest expense in gain (loss) in fair value of derivative financial instruments in our accompanying condensed consolidated statements of operations and comprehensive income. Changes in the fair value of foreign currency derivative financial instruments are recorded in foreign currency and derivative loss in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||||||||||
See Note 14, Fair Value Measurements, for a further discussion of the fair value of our derivative financial instruments. | ||||||||||||||||
Interest Rate Swaps | ||||||||||||||||
For the three months ended March 31, 2014 and 2013, we recorded $50,000 and $89,000, respectively, as a decrease to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income related to the change in the fair value of our interest rate swaps. | ||||||||||||||||
The following table lists the interest rate swap contracts held by us as of March 31, 2014: | ||||||||||||||||
Notional Amount | Index | Interest Rate | Fair Value | Instrument | Maturity Date | |||||||||||
$ | 2,418,000 | one month LIBOR | 6 | % | $ | (298,000 | ) | Swap | 8/15/21 | |||||||
6,718,000 | one month LIBOR | 4.28 | % | (10,000 | ) | Swap | 5/1/14 | |||||||||
6,755,000 | one month LIBOR | 4.11 | % | (93,000 | ) | Swap | 10/1/15 | |||||||||
$ | 15,891,000 | $ | (401,000 | ) | ||||||||||||
The following table lists the interest rate swap contracts held by us as of December 31, 2013: | ||||||||||||||||
Notional Amount | Index | Interest Rate | Fair Value | Instrument | Maturity Date | |||||||||||
$ | 2,483,000 | one month LIBOR | 6 | % | $ | (309,000 | ) | Swap | 8/15/21 | |||||||
6,798,000 | one month LIBOR | 4.41 | % | — | Swap | 1/1/14 | ||||||||||
6,761,000 | one month LIBOR | 4.28 | % | (39,000 | ) | Swap | 5/1/14 | |||||||||
6,784,000 | one month LIBOR | 4.11 | % | (103,000 | ) | Swap | 10/1/15 | |||||||||
$ | 22,826,000 | $ | (451,000 | ) | ||||||||||||
Foreign Currency Forward Contract | ||||||||||||||||
On September 9, 2013, we entered into a foreign currency forward contract to sell £180,000,000 at the fixed foreign currency exchange rate of 1.5606 on September 10, 2014. For the three months ended March 31, 2014, we recorded an unrealized loss of $2,199,000 to foreign currency and derivative loss in our accompanying condensed consolidated statements of operations and comprehensive income related to the change in the fair value of our foreign currency forward contract. As of March 31, 2014 and December 31, 2013, the fair value of our foreign currency forward contract was $(18,688,000) and $(16,489,000), which is included in derivative financial instruments in our accompanying condensed consolidated balance sheets. For the three months ended March 31, 2013, we did not enter into any foreign currency forward contracts. |
Line_of_Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
Line of Credit | |
Unsecured Revolving Line of Credit | |
On June 5, 2012, we, our operating partnership and certain of our subsidiaries, or the subsidiary guarantors, entered into a credit agreement, or the Credit Agreement, with Bank of America, N.A., or Bank of America, as administrative agent, swingline lender and issuer of letters of credit; KeyBank National Association, or KeyBank, as syndication agent; Merrill Lynch, Pierce, Fenner & Smith Incorporated and KeyBanc Capital Markets as joint lead arrangers and joint book managers; and the lenders named therein, to obtain an unsecured revolving line of credit, with an aggregate maximum principal amount of $200,000,000, or our unsecured line of credit. The proceeds of loans made under our unsecured line of credit may be used for working capital, capital expenditures and other general corporate purposes (including, without limitation, property acquisitions and repayment of debt). Our operating partnership may obtain up to 10.0% of the maximum principal amount in the form of standby letters of credit and up to 15.0% of the maximum principal amount in the form of swingline loans. | |
On May 24, 2013, we entered into a Second Amendment to the Credit Agreement, or the Amendment, which increased the aggregate maximum principal amount of our unsecured line of credit to $450,000,000, with Bank of America, KeyBank, RBS Citizens, N.A., and Comerica Bank, as existing lenders, and Barclays Bank PLC, Fifth Third Bank, Wells Fargo Bank, N.A., Credit Agricole Corporate and Investment Bank, and Sumitomo Mitsui Banking Corporation, as new lenders. The Amendment also revised the amount that may be obtained by our operating partnership in the form of swingline loans from up to 15.0% of the maximum principal amount to up to $50,000,000. | |
The maximum principal amount of the Credit Agreement, as amended, may be increased by up to $200,000,000, for a total principal amount of $650,000,000, subject to (a) the terms of the Credit Agreement, as amended, and (b) such additional financing amount being offered and provided by current lenders or additional lenders under the Credit Agreement, as amended. | |
At our option, loans under the Credit Agreement, as amended, bear interest at per annum rates equal to (a) (i) the Eurodollar Rate plus (ii) a margin ranging from 2.00% to 3.00% based on our consolidated leverage ratio, or (b) (i) the greater of: (x) the prime rate publicly announced by Bank of America, (y) the Federal Funds Rate (as defined in the Credit Agreement, as amended) plus 0.50% and (z) the one-month Eurodollar Rate (as defined in the Credit Agreement, as amended) plus 1.00%, plus (ii) a margin ranging from 1.00% to 2.00% based on our consolidated leverage ratio. Accrued interest under the Credit Agreement, as amended, is payable monthly. Our unsecured line of credit matures on June 5, 2015, and may be extended by one 12-month period subject to satisfaction of certain conditions, including payment of an extension fee. | |
We are required to pay a fee on the unused portion of the lenders' commitments under the Credit Agreement, as amended, at a per annum rate equal to 0.25% if the average daily used amount is greater than 50.0% of the commitments and 0.35% if the average daily used amount is less than 50.0% of the commitments. | |
The Credit Agreement, as amended, contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by our operating partnership and its subsidiaries and limitations on secured recourse indebtedness. The Credit Agreement, as amended, imposes the following financial covenants, which are specifically defined in the Credit Agreement, as amended: (a) a maximum consolidated leverage ratio; (b) a maximum consolidated secured leverage ratio; (c) a minimum consolidated tangible net worth covenant; (d) a minimum consolidated fixed charge coverage ratio; (e) a maximum dividend payout ratio; (f) a maximum consolidated unencumbered leverage ratio; and (g) a minimum consolidated unencumbered interest coverage ratio. As of March 31, 2014 and December 31, 2013, we were in compliance with all such covenants and requirements. | |
The Credit Agreement, as amended, requires us to add additional subsidiaries as guarantors in the event the value of the assets owned by the subsidiary guarantors falls below a certain threshold as set forth in the Credit Agreement, as amended. In the event of default, the lenders have the right to terminate its obligations under the Credit Agreement, as amended, including the funding of future loans, and to accelerate the payment on any unpaid principal amount of all outstanding loans and interest thereon. | |
The actual amount of credit available under our unsecured line of credit at any given time is a function of, and is subject to, loan to value and debt service coverage ratios based on net operating income as contained in the Credit Agreement, as amended. Based on the value of our borrowing base properties, as such term is used in the Credit Agreement, as amended, our aggregate borrowing capacity under our unsecured line of credit was $450,000,000 as of March 31, 2014 and December 31, 2013. As of March 31, 2014 and December 31, 2013, borrowings outstanding under our unsecured line of credit totaled $158,100,000 and $68,000,000, respectively, and $291,900,000 and $382,000,000, respectively, remained available thereunder. The weighted average interest rate on borrowings outstanding as of March 31, 2014 and December 31, 2013 was 2.20% and 2.32%, respectively, per annum. |
Identified_Intangible_Liabilit
Identified Intangible Liabilities, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Intangible Liabilities [Abstract] | ' | |||||||
Identified Intangible Liabilities, Net | ' | |||||||
Identified Intangible Liabilities, Net | ||||||||
Identified intangible liabilities, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Below market leases, net of accumulated amortization of $1,077,000 and $887,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 7.6 years and 7.8 years as of March 31, 2014 and December 31, 2013, respectively) | $ | 6,573,000 | $ | 6,884,000 | ||||
Above market leasehold interests, net of accumulated amortization of $110,000 and $83,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 69.9 years and 70.0 years as of March 31, 2014 and December 31, 2013, respectively) | 4,783,000 | 4,809,000 | ||||||
$ | 11,356,000 | $ | 11,693,000 | |||||
Amortization expense on below market leases for the three months ended March 31, 2014 and 2013 was $375,000 and $147,000, respectively. Amortization expense on below market leases is recorded to real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||
Amortization expense on above market leasehold interests for the three months ended March 31, 2014 and 2013 was $27,000 and $12,000, respectively. Amortization expense on above market leasehold interests is recorded against rental expenses in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||
The aggregate weighted average remaining life of the identified intangible liabilities is 33.8 and 33.4 years as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, estimated amortization expense on below market leases and above market leasehold interests for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | ||||||||
Year | Amount | |||||||
2014 | $ | 947,000 | ||||||
2015 | 1,191,000 | |||||||
2016 | 1,121,000 | |||||||
2017 | 965,000 | |||||||
2018 | 856,000 | |||||||
Thereafter | 6,276,000 | |||||||
$ | 11,356,000 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows. | |
Environmental Matters | |
We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our condensed consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. | |
Other | |
Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business, which include calls/puts to sell/acquire properties. In our view, these matters are not expected to have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Related Party Transactions | ' | |||||||||
Related Party Transactions | ||||||||||
Fees and Expenses Paid to Affiliates | ||||||||||
All of our executive officers and our non-independent directors are also executive officers and employees and/or holders of a direct or indirect interest in our sub-advisor, one of our co-sponsors or other affiliated entities. We are affiliated with Griffin-American Sub-Advisor and American Healthcare Investors; however, we are not affiliated with Griffin Capital, Griffin-American Advisor or Griffin Securities. In the aggregate, for the three months ended March 31, 2014 and 2013, we incurred $10,973,000 and $7,145,000, respectively, in fees and expenses to our affiliates as detailed below. Our advisor, which is not our affiliate, delegates certain advisory duties pursuant to a sub-advisory agreement to our sub-advisor, which is our affiliate. Therefore, although certain obligations under the Advisory Agreement are contractually performed by or for our advisor, only such obligations pursuant to the sub-advisory agreement that are performed by or for our sub-advisor or its affiliates are disclosed in this related party transactions note. | ||||||||||
Offering Stage | ||||||||||
Other Organizational and Offering Expenses | ||||||||||
Other organizational expenses were expensed as incurred and offering expenses were charged to stockholders' equity as such amounts were paid from the gross proceeds of our offerings. | ||||||||||
Initial Offering | ||||||||||
Through the termination of our initial offering on February 14, 2013, our other organizational and offering expenses were paid by our sub-advisor or its affiliates on our behalf. Our sub-advisor or its affiliates were reimbursed for actual expenses incurred up to 1.0% of the gross offering proceeds from the sale of shares of our common stock in our initial offering other than shares of our common stock sold pursuant to the DRIP. For the three months ended March 31, 2013, we incurred $115,000 in offering expenses to our sub-advisor in connection with our initial offering. | ||||||||||
Follow-On Offering | ||||||||||
Pursuant to our follow-on offering, which commenced February 14, 2013 and terminated on October 30, 2013, our other organizational and offering expenses were paid by our sub-advisor or its affiliates on our behalf. Our sub-advisor or its affiliates were reimbursed for actual expenses incurred up to 1.0% of the gross offering proceeds from the sale of shares of our common stock in our follow-on offering other than shares of our common stock sold pursuant to the DRIP. For the three months ended March 31, 2013, we incurred $658,000 in offering expenses to our sub-advisor in connection with our follow-on offering. | ||||||||||
Acquisition and Development Stage | ||||||||||
Acquisition Fee | ||||||||||
Our sub-advisor or its affiliates receive an acquisition fee of up to 2.60% of the contract purchase price for each property we acquire or 2.0% of the origination or acquisition price for any real estate-related investment we originate or acquire. The acquisition fee for property acquisitions is paid as follows: (i) in shares of common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our offerings, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. Our sub-advisor or its affiliates are entitled to receive these acquisition fees for properties and real estate-related investments we acquire with funds raised in our offerings including acquisitions completed after the termination of the Advisory Agreement, or funded with net proceeds from the sale of a property or real estate-related investment, subject to certain conditions. For the three months ended March 31, 2014 and 2013, we incurred $2,846,000 and $2,485,000, respectively, in acquisition fees to our sub-advisor and its affiliates, which included 17,066 shares and 15,157 shares of common stock, respectively. | ||||||||||
Acquisition fees in connection with the acquisition of properties are (i) expensed as incurred when they relate to the purchase of a business in accordance with ASC Topic 805 and are included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income, or (ii) are capitalized when they relate to the purchase of an asset and included in real estate investments, net, in our accompanying condensed consolidated balance sheets, as applicable. Acquisition fees in connection with the acquisition of real estate-related investments are capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. | ||||||||||
Development Fee | ||||||||||
Our sub-advisor or its affiliates receive, in the event our sub-advisor or its affiliates provide development-related services, a development fee in an amount that is usual and customary for comparable services rendered for similar projects in the geographic market where the services are provided; however, we will not pay a development fee to our sub-advisor or its affiliates if our sub-advisor or its affiliates elect to receive an acquisition fee based on the cost of such development. For the three months ended March 31, 2014 and 2013, we did not incur any development fees to our sub-advisor or its affiliates. | ||||||||||
Reimbursement of Acquisition Expenses | ||||||||||
Our sub-advisor or its affiliates are reimbursed for acquisition expenses related to selecting, evaluating and acquiring assets, which is reimbursed regardless of whether an asset is acquired. For the three months ended March 31, 2014 and 2013, we did not incur any acquisition expenses to our sub-advisor or its affiliates. | ||||||||||
Reimbursements of acquisition expenses related to real estate investments are (i) expensed as incurred when they relate to the purchase of a business in accordance with ASC Topic 805 and are included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income, or (ii) are capitalized when they relate to the purchase of an asset and included in real estate investments, net, in our accompanying condensed consolidated balance sheets, as applicable. Reimbursements of acquisition expenses in connection with the acquisition of real estate-related investments are capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. | ||||||||||
The reimbursement of acquisition expenses, acquisition fees and real estate commissions and other fees paid to unaffiliated parties will not exceed, in the aggregate, 6.0% of the purchase price or total development costs, unless fees in excess of such limits are approved by a majority of our disinterested directors, including a majority of our independent directors, not otherwise interested in the transaction. For the three months ended March 31, 2014 and 2013, such fees and expenses did not exceed 6.0% of the purchase price of our acquisitions. | ||||||||||
Operational Stage | ||||||||||
Asset Management Fee | ||||||||||
Our sub-advisor or its affiliates are paid a monthly fee for services rendered in connection with the management of our assets equal to one-twelfth of 0.85% of average invested assets existing as of January 6, 2012 and one-twelfth of 0.75% of the average invested assets acquired after January 6, 2012, subject to our stockholders receiving distributions in an amount equal to 5.0% per annum, cumulative, non-compounded, of average invested capital. For such purposes, average invested assets means the average of the aggregate book value of our assets invested in real estate properties and real estate-related investments, before deducting depreciation, amortization, bad debt and other similar non-cash reserves, computed by taking the average of such values at the end of each month during the period of calculation; and average invested capital means, for a specified period, the aggregate issue price of shares of our common stock purchased by our stockholders, reduced by distributions of net sales proceeds by us to our stockholders and by any amounts paid by us to repurchase shares of our common stock pursuant to our share repurchase plan. For the three months ended March 31, 2014 and 2013, we incurred $5,590,000 and $2,718,000, respectively, in asset management fees to our sub-advisor. | ||||||||||
Asset management fees are included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||||
Property Management Fee | ||||||||||
Our sub-advisor or its affiliates are paid a monthly property management fee of up to 4.0% of the gross monthly cash receipts from each property managed by our sub-advisor or its affiliates. Our sub-advisor or its affiliates may sub-contract its duties to any third-party, including for fees less than the property management fees payable to our sub-advisor or its affiliates. In addition to the above property management fee, for each property managed directly by entities other than our sub-advisor or its affiliates, we pay our sub-advisor or its affiliates a monthly oversight fee of up to 1.0% of the gross cash receipts from the property; provided however, that in no event will we pay both a property management fee and an oversight fee to our sub-advisor or its affiliates with respect to the same property. For the three months ended March 31, 2014 and 2013, we incurred $1,610,000 and $825,000, respectively, in property management fees and oversight fees to our sub-advisor or its affiliates. | ||||||||||
Property management fees and oversight fees are included in rental expenses in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||||
Lease Fees | ||||||||||
We pay our sub-advisor or its affiliates a separate fee for any leasing activities in an amount not to exceed the fee customarily charged in arm's-length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area. Such fee is generally expected to range from 3.0% to 8.0% of the gross revenues generated during the initial term of the lease. For the three months ended March 31, 2014 and 2013, we incurred $860,000 and $305,000, respectively, in lease fees to our sub-advisor or its affiliates. | ||||||||||
Lease fees are capitalized as lease commissions and included in other assets, net in our accompanying condensed consolidated balance sheets. | ||||||||||
Construction Management Fee | ||||||||||
In the event that our sub-advisor or its affiliates assist with planning and coordinating the construction of any capital or tenant improvements, our sub-advisor or its affiliates are paid a construction management fee of up to 5.0% of the cost of such improvements. For the three months ended March 31, 2014 and 2013, we incurred $67,000 and $39,000, respectively, in construction management fees to our sub-advisor or its affiliates. | ||||||||||
Construction management fees are capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets or expensed and included in our accompanying condensed consolidated statements of operations and comprehensive income, as applicable. | ||||||||||
Operating Expenses | ||||||||||
We reimburse our sub-advisor or its affiliates for operating expenses incurred in rendering services to us, subject to certain limitations. However, we cannot reimburse our sub-advisor or its affiliates at the end of any fiscal quarter for total operating expenses that, in the four consecutive fiscal quarters then ended, exceed the greater of: (i) 2.0% of our average invested assets, as defined in the Advisory Agreement, or (ii) 25.0% of our net income, as defined in the Advisory Agreement, unless our independent directors determined that such excess expenses were justified based on unusual and nonrecurring factors. | ||||||||||
For the 12 months ended March 31, 2014, our operating expenses did not exceed this limitation. Our operating expenses as a percentage of average invested assets and as a percentage of net income were 1.0% and 20.6%, respectively, for the 12 months ended March 31, 2014. For the three months ended March 31, 2014 and 2013, our sub-advisor or its affiliates did not incur any operating expenses on our behalf. | ||||||||||
Operating expense reimbursements are included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||||
Compensation for Additional Services | ||||||||||
Our sub-advisor and its affiliates are paid for services performed for us other than those required to be rendered by our sub-advisor or its affiliates under the Advisory Agreement. The rate of compensation for these services has to be approved by a majority of our board of directors, including a majority of our independent directors, and cannot exceed an amount that would be paid to unaffiliated parties for similar services. For the three months ended March 31, 2014 and 2013, our sub-advisor and its affiliates were not compensated for any additional services. | ||||||||||
Liquidity Stage | ||||||||||
Disposition Fees | ||||||||||
For services relating to the sale of one or more properties, our sub-advisor or its affiliates are paid a disposition fee up to the lesser of 2.0% of the contract sales price or 50.0% of a customary competitive real estate commission given the circumstances surrounding the sale, in each case as determined by our board of directors, including a majority of our independent directors, upon the provision of a substantial amount of the services in the sales effort. The amount of disposition fees paid, when added to the real estate commissions paid to unaffiliated parties, will not exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. For the three months ended March 31, 2014 and 2013, we did not incur any disposition fees to our sub-advisor or its affiliates. | ||||||||||
Subordinated Participation Interest | ||||||||||
Subordinated Distribution of Net Sales Proceeds | ||||||||||
In the event of liquidation, our sub-advisor will be paid a subordinated distribution of net sales proceeds. The distribution will be equal to 15.0% of the net proceeds from the sales of properties, subject to certain reductions relating to properties acquired prior to Griffin-American Advisor's appointment as our advisor, as set forth in the operating partnership agreement, after distributions to our stockholders, in the aggregate, of (i) a full return of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) plus (ii) an annual 8.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock, as adjusted for distributions of net sale proceeds. Actual amounts to be received depend on the sale prices of properties upon liquidation. For the three months ended March 31, 2014 and 2013, we did not incur any such distributions to our sub-advisor. | ||||||||||
Subordinated Distribution upon Listing | ||||||||||
Upon the listing of shares of our common stock on a national securities exchange, our sub-advisor will be paid a distribution equal to 15.0% of the amount by which (i) the market value of our outstanding common stock at listing plus distributions paid prior to listing exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the amount of cash that, if distributed to stockholders as of the date of listing, would have provided them an annual 8.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the date of listing, subject to certain reductions relating to properties acquired prior to Griffin-American Advisor's appointment as our advisor, as set forth in the operating partnership agreement. Actual amounts to be received depend upon the market value of our outstanding stock at the time of listing among other factors. For the three months ended March 31, 2014 and 2013, we did not incur any such distributions to our sub-advisor. | ||||||||||
Subordinated Distribution Upon Termination | ||||||||||
Upon termination or non-renewal of the Advisory Agreement, our sub-advisor will be entitled to a subordinated distribution from our operating partnership equal to 15.0% of the amount, if any, by which (i) the appraised value of our assets on the termination date, less any indebtedness secured by such assets, plus total distributions paid through the termination date, exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the total amount of cash that, if distributed to them as of the termination date, will provide them an annual 8.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the termination date, subject to certain reductions relating to properties acquired prior to Griffin-American Advisor's appointment as our advisor. | ||||||||||
As of March 31, 2014 and 2013, we had not recorded any charges to earnings related to the subordinated distribution upon termination. | ||||||||||
Executive Stock Purchase Plans | ||||||||||
Effective January 1, 2013, our Chairman of the Board of Directors and Chief Executive Officer, Jeffrey T. Hanson, our President and Chief Operating Officer, Danny Prosky, and our Executive Vice President, General Counsel, Mathieu B. Streiff, each executed a stock purchase plan, or the Executive Stock Purchase Plans, whereby they each irrevocably agreed to invest 100%, 50.0% and 50.0%, respectively, of their net after-tax base salary and cash bonus compensation earned as employees of American Healthcare Investors directly into our company by purchasing shares of our common stock. In addition, our Chief Financial Officer, Shannon K S Johnson, our Senior Vice President of Acquisitions, Stefan K.L. Oh, and our Secretary, Cora Lo, each executed similar Executive Stock Purchase Plans whereby each executive irrevocably agreed to invest 15.0%, 15.0% and 10.0%, respectively, of their net after-tax base salary earned as employees of American Healthcare Investors directly into our company by purchasing shares of our common stock. The Executive Stock Purchase Plans each were to terminate on the earlier of (i) December 31, 2013, (ii) the termination of our offerings, (iii) any suspension of our offerings by our board of directors or a regulatory body, or (iv) the date upon which the number of shares of our common stock owned by such person, when combined with all their other investments in our common stock, exceeds the ownership limits set forth in our charter. In connection with the termination of our follow-on offering on October 30, 2013, the Executive Stock Purchase Plans also terminated. | ||||||||||
For the three months ended March 31, 2013, our executive officers invested the following amounts and we issued the following shares of our common stock pursuant to the applicable stock purchase plan: | ||||||||||
Three Months Ended | ||||||||||
March 31, 2013 | ||||||||||
Officer's Name | Title | Amount | Shares | |||||||
Jeffrey T. Hanson | Chairman of the Board of Directors and Chief Executive Officer | $ | 20,000 | 2,169 | ||||||
Danny Prosky | President and Chief Operating Officer | 14,000 | 1,565 | |||||||
Mathieu B. Streiff | Executive Vice President, General Counsel | 13,000 | 1,391 | |||||||
Shannon K S Johnson | Chief Financial Officer | 5,000 | 548 | |||||||
Stefan K.L. Oh | Senior Vice President of Acquisitions | 3,000 | 341 | |||||||
Cora Lo | Secretary | 3,000 | 309 | |||||||
$ | 58,000 | 6,323 | ||||||||
Accounts Payable Due to Affiliates | ||||||||||
The following amounts were outstanding to our affiliates as of March 31, 2014 and December 31, 2013: | ||||||||||
March 31, | December 31, | |||||||||
Fee | 2014 | 2013 | ||||||||
Asset and property management fees | $ | 2,568,000 | $ | 2,201,000 | ||||||
Lease commissions | 353,000 | 83,000 | ||||||||
Construction management fees | 106,000 | 94,000 | ||||||||
Offering costs | — | 28,000 | ||||||||
Operating expenses | 3,000 | 1,000 | ||||||||
$ | 3,030,000 | $ | 2,407,000 | |||||||
Equity
Equity | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Equity | ' | |||||||||||
Equity | ||||||||||||
Preferred Stock | ||||||||||||
Our charter authorizes us to issue 200,000,000 shares of our preferred stock, par value $0.01 per share. As of March 31, 2014 and December 31, 2013, no shares of preferred stock were issued and outstanding. | ||||||||||||
Common Stock | ||||||||||||
Our charter authorizes us to issue 1,000,000,000 shares of our common stock. Until November 6, 2012, we offered to the public up to $3,000,000,000 of shares of our common stock for $10.00 per share in our primary offering and $285,000,000 of shares of our common stock pursuant to our DRIP for $9.50 per share. On November 7, 2012, we began selling shares of our common stock in our initial offering at $10.22 per share in our primary offering and issuing shares pursuant to the DRIP for $9.71 per share. On February 14, 2013, we terminated our initial offering. | ||||||||||||
On February 14, 2013, we commenced our follow-on offering of up to $1,650,000,000 of shares of our common stock, in which we initially offered to the public up to $1,500,000,000 of shares of our common stock for $10.22 per share in our primary offering and up to $150,000,000 of shares of our common stock for $9.71 per share pursuant to the DRIP. We reserved the right to reallocate the shares of common stock we offered in our follow-on offering between the primary offering and the DRIP. As such, during our follow-on offering, we reallocated an aggregate of $107,200,000 of shares from the DRIP to the primary offering. Accordingly, we offered to the public $1,607,200,000 in our primary offering and $42,800,000 of shares of our common stock pursuant to the DRIP. On October 30, 2013, we terminated our follow-on offering. | ||||||||||||
On September 9, 2013, we filed a Registration Statement on Form S-3 under the Securities Act of 1933, as amended, to register $100,000,000 of additional shares of our common stock pursuant to our distribution reinvestment plan, or the Secondary DRIP. The Registration Statement on Form S-3 was automatically effective with the SEC upon its filing; however, we did not commence offering shares pursuant to the Secondary DRIP until October 30, 2013 following the termination of our follow-on offering. On March 28, 2014, our board of directors suspended the Secondary DRIP effective with the distributions declared for the month of April 2014, which were payable in May 2014, and all future distributions declared will be paid in cash to our stockholders. | ||||||||||||
On January 4, 2012, Griffin-American Advisor acquired 22,222 shares of our common stock for $200,000. | ||||||||||||
Through March 31, 2014, we granted an aggregate of 149,040 shares of our restricted common stock to our independent directors. Through March 31, 2014, we had issued 280,801,806 shares of our common stock in connection with our offerings, 13,327,714 shares of our common stock pursuant to the DRIP and the Secondary DRIP and 105,337 shares of our common stock for property acquisition fees that were issued after the termination of our follow-on offering. We had also repurchased 1,704,646 shares of our common stock under our share repurchase plan through March 31, 2014. As of March 31, 2014 and December 31, 2013, we had 292,701,473 and 290,003,240 shares of our common stock issued and outstanding, respectively. | ||||||||||||
Offering Costs | ||||||||||||
Selling Commissions | ||||||||||||
Initial Offering | ||||||||||||
Through the termination of our initial offering on February 14, 2013, our dealer manager received selling commissions of up to 7.0% of the gross offering proceeds from the sale of shares of our common stock in our initial offering other than shares of our common stock sold pursuant to the DRIP. Our dealer manager could have re-allowed all or a portion of these fees to participating broker-dealers. For the three months ended March 31, 2013, we incurred $9,102,000 in selling commissions to our dealer manager. Such commissions were charged to stockholders' equity as such amounts were paid to our dealer manager from the gross proceeds of our initial offering. | ||||||||||||
Follow-On Offering | ||||||||||||
Pursuant to our follow-on offering, which commenced February 14, 2013 and terminated on October 30, 2013, our dealer manager received selling commissions of up to 7.0% of the gross offering proceeds from the sale of shares of our common stock other than shares of our common stock sold pursuant to the DRIP. Our dealer manager could have re-allowed all or a portion of these fees to participating broker-dealers. For the three months ended March 31, 2013, we incurred $4,437,000 in selling commissions to our dealer manager. Such selling commissions were charged to stockholders’ equity as such amounts were reimbursed to our dealer manager from the gross proceeds of our follow-on offering. | ||||||||||||
Dealer Manager Fee | ||||||||||||
Initial Offering | ||||||||||||
Through the termination of our initial offering on February 14, 2013, our dealer manager received a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of shares of our common stock in our initial offering other than shares of our common stock sold pursuant to the DRIP. Our dealer manager could have re-allowed all or a portion of these fees to participating broker-dealers. For the three months ended March 31, 2013, we incurred $3,981,000 in dealer manager fees to our dealer manager. Such fees were charged to stockholders' equity as such amounts were paid to our dealer manager from the gross proceeds of our initial offering. | ||||||||||||
Follow-On Offering | ||||||||||||
Pursuant to our follow-on offering, which commenced February 14, 2013 and terminated on October 30, 2013, our dealer manager received a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of shares of our common stock other than shares of our common stock sold pursuant to the DRIP. Our dealer manager could have re-allowed all or a portion of the dealer manager fee to participating broker-dealers. For the three months ended March 31, 2013, we incurred $1,962,000 in dealer manager fees to our dealer manager. Such fees were charged to stockholders' equity as such amounts were paid to our dealer manager from the gross proceeds of our follow-on offering. | ||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
For the three months ended March 31, 2013, we did not have other comprehensive income. The changes in accumulated other comprehensive income net of noncontrolling interests by component consisted of the following for the three months ended March 31, 2014: | ||||||||||||
Gains on Intra-Entity Foreign Currency Transactions That Are of a Long-Term Investment Nature | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance — December 31, 2013 | $ | 22,037,000 | $ | 739,000 | $ | 22,776,000 | ||||||
Net change in current period | 3,191,000 | 104,000 | 3,295,000 | |||||||||
Balance — March 31, 2014 | $ | 25,228,000 | $ | 843,000 | $ | 26,071,000 | ||||||
Noncontrolling Interests | ||||||||||||
On February 4, 2009, our former advisor made an initial capital contribution of $2,000 to our operating partnership in exchange for 200 limited partnership units. On January 4, 2012, Griffin-American Advisor contributed $2,000 to acquire 200 limited partnership units of our operating partnership. On September 14, 2012, we entered into an agreement whereby we purchased all of the limited partnership interests held by our former advisor in our operating partnership. Between December 31, 2012 and July 16, 2013, 12 investors contributed their interests in 15 buildings in exchange for 281,600 limited partnership units in our operating partnership at an offering price per unit of $9.50. Pursuant to the operating partnership agreement, each limited partnership unit may be exchanged, at any time on or after the first anniversary date of the issuance, on a one-for-one basis for shares of our common stock, or, at our option, cash equal to the value of an equivalent number of shares of our common stock, or any combination of both. Each limited partnership unit is also entitled to distributions in an amount equal to the per share distributions declared on shares of our common stock. | ||||||||||||
As of March 31, 2014 and 2013, we owned greater than a 99.90% and 99.96%, respectively, general partnership interest in our operating partnership and our limited partners owned less than a 0.10% and 0.04%, respectively, limited partnership interest in our operating partnership. As such, less than 0.10% and 0.04%, respectively, of the earnings of our operating partnership for the three months ended March 31, 2014 and 2013 were allocated to noncontrolling interests, subject to certain limitations. | ||||||||||||
Until December 31, 2013, we owned a 98.75% interest in the consolidated limited liability company that owns Pocatello East Medical Office Building, or the Pocatello East MOB property. As such, for the three months ended March 31, 2013, 1.25% of the earnings of the Pocatello East MOB property were allocated to noncontrolling interests. | ||||||||||||
On December 31, 2013, we purchased the remaining 1.25% noncontrolling interest in the consolidated limited liability company that owns the Pocatello East MOB property that was purchased on July 27, 2010. | ||||||||||||
Distribution Reinvestment Plan | ||||||||||||
We adopted the DRIP that allowed stockholders to purchase additional shares of our common stock through the reinvestment of distributions at an offering price equal to 95.0% of the primary offering price of our offerings, subject to certain conditions. On September 9, 2013, we filed a Registration Statement on Form S-3 under the Securities Act to register a maximum of $100,000,000 of additional shares of our common stock pursuant to the Secondary DRIP. We commenced offering shares under the Secondary DRIP on October 30, 2013 following the termination of our follow-on offering. On March 28, 2014, our board of directors suspended the Secondary DRIP effective with the distributions declared for the month of April 2014, which were payable in May 2014, and all future distributions declared will be paid in cash to our stockholders. | ||||||||||||
For the three months ended March 31, 2014 and 2013, $27,411,000 and $10,129,000, respectively, in distributions were reinvested and 2,823,040 and 1,043,214 shares of our common stock, respectively, were issued pursuant to the Secondary DRIP and the DRIP, respectively. As of March 31, 2014 and December 31, 2013, a total of $128,740,000 and $101,329,000, respectively, in distributions were reinvested and 13,327,714 and 10,504,674 shares of our common stock, respectively, were issued pursuant to the DRIP and the Secondary DRIP. | ||||||||||||
Share Repurchase Plan | ||||||||||||
Our board of directors approved a share repurchase plan that allowed for repurchases of shares of our common stock by us when certain criteria were met. Share repurchases were made at the sole discretion of our board of directors. All repurchases were subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or “qualifying disability,” as defined in our share repurchase plan. Subject to the availability of the funds for share repurchases, we limited the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year; provided, however, that shares subject to a repurchase requested upon the death of a stockholder were not subject to this cap. Funds for the repurchase of shares of our common stock came exclusively from the cumulative proceeds we received from the sale of shares of our common stock pursuant to the DRIP and the Secondary DRIP. | ||||||||||||
On November 6, 2012, our board of directors approved an Amended and Restated Share Repurchase Plan, whereby all shares repurchased on or after December 7, 2012 would be repurchased following a one year holding period at 92.5% to 100% of each stockholder's repurchase amount depending on the period of time their shares have been held. Pursuant to the Amended and Restated Share Repurchase Plan, at any time we were engaged in an offering of shares of our common stock, the repurchase amount for shares repurchased under our share repurchase plan would always be equal to or lower than the applicable per share offering price. However, if shares of our common stock were to be repurchased in connection with a stockholder's death or qualifying disability, the repurchase price would be no less than 100% of the price paid to acquire the shares of our common stock from us. Furthermore, our share repurchase plan provided that if there were insufficient funds to honor all repurchase requests, pending requests would be honored among all requests for repurchase in any given repurchase period, as followed: first, pro rata as to repurchases sought upon a stockholder's death; next, pro rata as to repurchases sought by stockholders with a qualifying disability; and, finally, pro rata as to other repurchase requests. On March 28, 2014, our board of directors suspended our share repurchase plan, and no stockholder repurchase requests submitted will be fulfilled beginning with requests with respect to the second quarter of 2014. | ||||||||||||
For the three months ended March 31, 2014 and 2013, we received share repurchase requests and repurchased 223,413 and 279,992 shares of our common stock, respectively, for an aggregate of $2,130,000 and $2,700,000, respectively, at an average repurchase price of $9.54 and $9.64 per share, respectively. All shares were repurchased using proceeds we received from the sale of shares of our common stock pursuant to the DRIP and the Secondary DRIP. | ||||||||||||
As of March 31, 2014 and December 31, 2013, we had received share repurchase requests and had repurchased 1,704,646 shares of our common stock for an aggregate of $16,429,000 at an average price of $9.64 per share and 1,481,233 shares of our common stock for an aggregate of $14,299,000 at an average price of $9.65, respectively, using proceeds we received from the sale of shares of our common stock pursuant to the DRIP and the Secondary DRIP. | ||||||||||||
2009 Incentive Plan | ||||||||||||
We adopted our incentive plan, pursuant to which our board of directors or a committee of our independent directors may make grants of options, restricted shares of common stock, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our incentive plan is 2,000,000. | ||||||||||||
Through March 31, 2014, we granted an aggregate of 60,000 shares of our restricted common stock, as defined in our incentive plan, to our independent directors in connection with their initial election or re-election to our board of directors, of which 20.0% vested on the grant date and 20.0% will vest on each of the first four anniversaries of the date of grant. In addition, on November 7, 2012 and January 20, 2014, we granted an aggregate of 7,500 and 81,540 shares, respectively, of restricted common stock, as defined in our incentive plan, to our independent directors in consideration of the directors' determination of market compensation for independent directors of similar publicly registered real estate investment trusts and for their past services rendered, respectively. These shares of restricted common stock vest under the same period described above. The fair value of each share at the date of grant was estimated at $10.00 or $10.22 per share, as applicable, the then most recent price paid to acquire a share of our common stock in our offerings; and with respect to the initial 20.0% of shares of our restricted common stock that vested on the date of grant, expensed as compensation immediately, and with respect to the remaining shares of our restricted common stock, amortized on a straight-line basis over the vesting period. Shares of our restricted common stock may not be sold, transferred, exchanged, assigned, pledged, hypothecated or otherwise encumbered. Such restrictions expire upon vesting. Shares of our restricted common stock have full voting rights and rights to distributions. For the three months ended March 31, 2014 and 2013, we recognized compensation expense of $226,000 and $26,000, respectively, related to the restricted common stock grants ultimately expected to vest. ASC Topic 718, Compensation — Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For the three months ended March 31, 2014 and 2013, we did not assume any forfeitures. Stock compensation expense is included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||||||
As of March 31, 2014 and December 31, 2013, there was $888,000 and $280,000, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to nonvested shares of our restricted common stock. This expense is expected to be recognized over a remaining weighted average period of 3.49 years. | ||||||||||||
As of March 31, 2014 and December 31, 2013, the weighted average grant date fair value of the nonvested shares of our restricted common stock was $972,000 and $306,000, respectively. A summary of the status of the nonvested shares of our restricted common stock as of March 31, 2014 and December 31, 2013, and the changes for the three months ended March 31, 2014, is presented below: | ||||||||||||
Number of Nonvested | Weighted | |||||||||||
Shares of our | Average Grant | |||||||||||
Restricted Common Stock | Date Fair Value | |||||||||||
Balance — December 31, 2013 | 30,000 | $ | 10.19 | |||||||||
Granted | 81,540 | $ | 10.22 | |||||||||
Vested | (16,308 | ) | $ | 10.22 | ||||||||
Forfeited | — | $ | — | |||||||||
Balance — March 31, 2014 | 95,232 | $ | 10.21 | |||||||||
Expected to vest — March 31, 2014 | 95,232 | $ | 10.21 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Assets and Liabilities Reported at Fair Value | ||||||||||||||||
The table below presents our assets and liabilities measured at fair value on a recurring basis as of March 31, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall. | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
and Liabilities | (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | — | 401,000 | $ | — | $ | 401,000 | |||||||||
Foreign currency forward contract | — | 18,688,000 | — | 18,688,000 | ||||||||||||
Contingent consideration obligations | — | — | 4,386,000 | 4,386,000 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 19,089,000 | $ | 4,386,000 | $ | 23,475,000 | ||||||||
The table below presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall. | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
and Liabilities | (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | — | $ | 451,000 | $ | — | $ | 451,000 | ||||||||
Foreign currency forward contract | — | 16,489,000 | — | 16,489,000 | ||||||||||||
Contingent consideration obligations | — | — | 4,675,000 | 4,675,000 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 16,940,000 | $ | 4,675,000 | $ | 21,615,000 | ||||||||
There were no transfers into and out of fair value measurement levels during the three months ended March 31, 2014 and 2013. | ||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||
We use interest rate swaps to manage interest rate risk associated with floating rate debt and foreign currency forward contracts to mitigate the effects of foreign currency fluctuations. The valuation of these instruments is determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, spot and forward rates, as well as option volatility. The fair values of interest rate swaps and foreign currency forward contracts are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates or foreign currency exchange rates (forward curves) derived from observable market interest rate curves and foreign currency exchange rates curves, as applicable. | ||||||||||||||||
To comply with the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC Topic 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. | ||||||||||||||||
Although we have determined that the majority of the inputs used to value our interest rate swaps and foreign currency forward contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparty. However, as of March 31, 2014 and December 31, 2013, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our interest rate swaps and foreign currency forward contracts. As a result, we have determined that our interest rate swaps and foreign currency forward contracts valuations in their entirety are classified in Level 2 of the fair value hierarchy. | ||||||||||||||||
Contingent Consideration | ||||||||||||||||
Obligations | ||||||||||||||||
In connection with our property acquisitions, we have accrued $4,386,000 and $4,675,000 as contingent consideration obligations as of March 31, 2014 and December 31, 2013, respectively. Such consideration will be paid upon various conditions being met including our tenants achieving certain rent coverage ratios, completing renovation projects or sellers' leasing of unoccupied space. Of the amount accrued as of March 31, 2014, $3,026,000 relates to our acquisition of Pacific Northwest Senior Care Portfolio on August 24, 2012 and $1,360,000 relates to various other property acquisitions. Of the amount accrued as of December 31, 2013, $3,208,000 relates to our acquisition of Pacific Northwest Senior Care Portfolio and $1,467,000 relates to various other property acquisitions. | ||||||||||||||||
We could be required to pay up to $6,525,000 in contingent consideration with respect to our acquisition of Pacific Northwest Senior Care Portfolio. The first $4,700,000 of such contingent consideration can be paid immediately upon notification that improvements up to such dollar amount have been completed by the tenant. The remaining portion of up to $1,825,000 could be paid within three years from the acquisition date provided that (i) the tenant has achieved a certain specified rent coverage ratio computed in the aggregate for the six most recent calendar months and (ii) the tenant has completed additional improvements in an amount up to $1,825,000. The range of payment is between $0 and up to a maximum of $6,525,000; however, such payment will result in an increase in the monthly rent charged to the tenant and additional rental revenue to us. We have assumed that the tenant will use and request the first $4,700,000 for the improvements and that the tenant will achieve the required rent coverage ratios for six consecutive months to qualify for the additional $1,825,000. As of March 31, 2014, we have made payments of $3,499,000 towards this obligation. | ||||||||||||||||
Unobservable Inputs and Reconciliation | ||||||||||||||||
The fair value of the contingent consideration is determined based on the facts and circumstances existing at each reporting date and the likelihood of the counterparty achieving the necessary conditions based on a probability weighted discounted cash flow analysis based, in part, on significant inputs which are not observable in the market. As a result, we have determined that our contingent consideration valuations are classified in Level 3 of the fair value hierarchy. Our contingent consideration obligations are included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets and any changes in their fair value subsequent to their acquisition date valuations are charged to earnings. Gains and losses recognized on contingent consideration obligations are included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income. | ||||||||||||||||
The following table shows quantitative information about unobservable inputs related to Level 3 fair value measurements used as of March 31, 2014 and December 31, 2013 for our most significant contingent consideration obligation: | ||||||||||||||||
Property | Fair Value as of March 31, 2014 | Fair Value as of December 31, 2013 | Unobservable Inputs | Range of Inputs/Inputs | ||||||||||||
Pacific Northwest Senior Care Portfolio | $ | 3,026,000 | $ | 3,208,000 | Achieve Required Lease Coverage Ratios | Yes | ||||||||||
Total Estimated Cost of Tenant Improvements | $6,525,000 | |||||||||||||||
Percentage of Eligible Payment Requested | 100% | |||||||||||||||
___________ | ||||||||||||||||
Significant increases or decreases in any of the unobservable inputs in isolation in the aggregate would result in a significantly higher or lower fair value measurement to each contingent consideration obligation as of March 31, 2014 and December 31, 2013. Lastly, if the counterparty requests something less than 100% of the eligible payment, which they have the right to do, then the fair value would decrease. If the lease coverage ratio is not met for Pacific Northwest Senior Care Portfolio, then the fair value would decrease to $1,201,000 and $1,383,000 as of March 31, 2014 and December 31, 2013, respectively. A decrease in the total cost of the tenant improvements would decrease the fair value of the tenant improvement allowance. An increase in the total cost of the tenant improvements would have no impact on the payment. | ||||||||||||||||
The following is a reconciliation of the beginning and ending balances of our contingent consideration assets and obligations for the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Contingent Consideration Obligations: | ||||||||||||||||
Beginning balance | $ | 4,675,000 | $ | 60,204,000 | ||||||||||||
Additions to contingent consideration obligations | 100,000 | — | ||||||||||||||
Realized/unrealized (gains) losses recognized in earnings | (38,000 | ) | 458,000 | |||||||||||||
Settlements of obligations | (351,000 | ) | (1,047,000 | ) | ||||||||||||
Ending balance | $ | 4,386,000 | $ | 59,615,000 | ||||||||||||
Amount of total (gains) losses included in earnings attributable to the change in unrealized (gains) losses related to obligations still held | $ | (38,000 | ) | $ | 458,000 | |||||||||||
Financial Instruments Disclosed at Fair Value | ||||||||||||||||
ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments, whether or not recognized on the face of the balance sheet. Fair value is defined under ASC Topic 820. | ||||||||||||||||
Our accompanying condensed consolidated balance sheets include the following financial instruments: real estate notes receivable, net, cash and cash equivalents, accounts and other receivables, net, restricted cash, real estate and escrow deposits, accounts payable and accrued liabilities, accounts payable due to affiliates, mortgage loans payable, net and borrowings under our unsecured line of credit. | ||||||||||||||||
We consider the carrying values of real estate notes receivable, net, cash and cash equivalents, accounts and other receivables, net, restricted cash, real estate and escrow deposits, accounts payable and accrued liabilities to approximate the fair value for these financial instruments because of the short period of time since origination or the short period of time between origination of the instruments and their expected realization. The fair value of accounts payable due to affiliates is not determinable due to the related party nature of the accounts payable. | ||||||||||||||||
The fair value of the mortgage loans payable and our unsecured line of credit is estimated using a discounted cash flow analysis using borrowing rates available to us for debt instruments with similar terms and maturities. As of March 31, 2014 and December 31, 2013, the fair value of the mortgage loans payable was $327,863,000 and $324,930,000, respectively, compared to the carrying value of $327,435,000 and $329,476,000, respectively. The fair value of our unsecured line of credit as of March 31, 2014 and December 31, 2013 was $158,575,000 and $68,243,000, respectively, compared to the carrying value of $158,100,000 and $68,000,000, respectively. We have determined that the mortgage loans payable and our unsecured line of credit valuations are classified as Level 2 within the fair value hierarchy. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. We have elected to treat certain of our consolidated subsidiaries as TRSs pursuant to the Code. TRSs may participate in services that would otherwise be considered impermissible for REITs and are subject to federal and state income tax at regular corporate tax rates. | ||||||||
We did not incur income taxes for the three months ended March 31, 2013. Components of income (loss) before taxes for the three months ended March 31, 2014 was as follows: | ||||||||
Amount | ||||||||
Domestic | $ | 10,323,000 | ||||||
Foreign | (869,000 | ) | ||||||
Income before income taxes | $ | 9,454,000 | ||||||
The components of income tax expense (benefit) for the three months ended March 31, 2014 was as follows: | ||||||||
Amount | ||||||||
Federal deferred | $ | (2,745,000 | ) | |||||
State deferred | (271,000 | ) | ||||||
Foreign current | 161,000 | |||||||
Foreign deferred | (745,000 | ) | ||||||
Valuation allowances | 2,968,000 | |||||||
Total income tax (benefit) | $ | (632,000 | ) | |||||
Current Income Tax | ||||||||
Federal and state income taxes are generally a function of the level of income recognized by our TRSs. Foreign income taxes are generally a function of our income on our real estate investments located in the United Kingdom. | ||||||||
Deferred Taxes | ||||||||
Deferred income tax is generally a function of the period’s temporary differences (principally basis differences between tax and financial reporting for real estate assets and equity investments) and generation of tax net operating losses that may be realized in future periods depending on sufficient taxable income. | ||||||||
We apply the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes, for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, we will initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on our estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A valuation allowance is established if we believe it is more likely than not that all or a portion of the deferred tax assets are not realizable. As of March 31, 2014, our valuation allowance fully reserves the net deferred tax asset due to inherent uncertainty of future income. We will continue to monitor industry and economic conditions, and our ability to generate taxable income based on our business plan and available tax planning strategies, which would allow us to utilize the tax benefits of the net deferred tax assets and thereby allow us to reverse all, or a portion of, our valuation allowance in the future. | ||||||||
For foreign income tax purposes, the UK Senior Housing Portfolio acquisition has been treated as a tax-free transaction resulting in a carry-over basis in assets and liabilities. In accordance with GAAP, we record all of the acquired assets and liabilities at the estimated fair values and recognize the deferred income tax liabilities that represent the tax effect of the difference between the tax basis carried over and the fair value of the assets at the date of acquisition. If taxable income is generated in these subsidiaries, we recognize a deferred income tax benefit in earnings as a result of the reversal of the deferred income tax liability previously recorded at the acquisition date and we record current income tax expense representing the entire current income tax liability. | ||||||||
Any increases or decreases to the deferred income tax assets or liabilities are reflected in income tax benefit in our condensed consolidated statements of operations and comprehensive income. The components of deferred tax assets and liabilities as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deferred income tax assets: | ||||||||
Net operating loss | $ | 2,968,000 | $ | — | ||||
Valuation allowances | (2,968,000 | ) | — | |||||
Total deferred income tax assets | $ | — | $ | — | ||||
Deferred income tax liabilities: | ||||||||
Foreign – built-in-gains, real estate properties | $ | 47,165,000 | $ | 47,635,000 | ||||
Other – temporary differences | 2,727,000 | 2,730,000 | ||||||
Total deferred income tax liabilities | $ | 49,892,000 | $ | 50,365,000 | ||||
Business_Combinations
Business Combinations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combination Disclosure | ' | ||||||||
Business Combinations | |||||||||
2014 | |||||||||
For the three months ended March 31, 2014, we completed two property acquisitions comprising two buildings, which have been accounted for as business combinations. The aggregate purchase price was $44,650,000, plus closing costs and acquisition fees of $1,281,000, which are included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income. See Note 3, Real Estate Investments, Net for a listing of the properties acquired, acquisition dates and the amount of financing initially incurred or assumed in connection with such acquisitions. Based on quantitative and qualitative considerations, the business combinations we completed during 2014 are not material individually or in the aggregate. | |||||||||
2013 | |||||||||
For the three months ended March 31, 2013, we completed six property acquisitions comprising 10 buildings, which have been accounted for as business combinations. The aggregate purchase price was $92,940,000, plus closing costs and acquisition fees of $3,041,000, which are included in acquisition related expenses in our accompanying condensed consolidated statements of operations and comprehensive income. See Note 3, Real Estate Investments, Net for a listing of the properties acquired, acquisition dates and the amount of financing initially incurred or assumed in connection with such acquisitions. | |||||||||
Results of operations for the property acquisitions are reflected in our accompanying condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2013 for the period subsequent to the acquisition date of each property through March 31, 2013. For the period from the acquisition date through March 31, 2013, we recognized the following amounts of revenue and net income for the property acquisitions: | |||||||||
Acquisition | Revenue | Net Income | |||||||
2013 Acquisitions | $ | 601,000 | $ | 291,000 | |||||
The following summarizes the fair value of our 2013 property acquisitions at the time of acquisition: | |||||||||
2013 Acquisitions | |||||||||
Building and improvements | $ | 69,067,000 | |||||||
Land | 8,327,000 | ||||||||
In-place leases | 5,990,000 | ||||||||
Tenant relationships | 9,371,000 | ||||||||
Above market leases | 1,663,000 | ||||||||
Total assets acquired | 94,418,000 | ||||||||
Mortgage loans payable, net | (7,088,000 | ) | |||||||
Below market leases | (1,234,000 | ) | |||||||
Total liabilities assumed | (8,322,000 | ) | |||||||
Net assets acquired | $ | 86,096,000 | |||||||
Assuming the property acquisitions in 2013 discussed above had occurred on January 1, 2012, for the three months ended March 31, 2013 and 2012, pro forma revenue, net (loss) income, net (loss) income attributable to controlling interest and net (loss) income per common share attributable to controlling interest — basic and diluted would have been as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 42,459,000 | $ | 21,603,000 | |||||
Net income (loss) | $ | 8,992,000 | $ | (2,772,000 | ) | ||||
Net income (loss) attributable to controlling interest | $ | 8,988,000 | $ | (2,772,000 | ) | ||||
Net income (loss) per common share attributable to controlling interest — basic and diluted | $ | 0.07 | $ | (0.05 | ) | ||||
The pro forma adjustments assume that the debt proceeds and the offering proceeds, at a price of $10.00 per share, net of offering costs were raised as of January 1, 2012. In addition, as acquisition related expenses related to the acquisitions are not expected to have a continuing impact, they have been excluded from the pro forma results. The pro forma results are not necessarily indicative of the operating results that would have been obtained had the acquisitions occurred at the beginning of the periods presented, nor are they necessarily indicative of future operating results. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||
ASC Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about a public entity's reportable segments. As of March 31, 2014, we evaluated our business and made resource allocations based on five reportable business segments—medical office buildings, hospitals, skilled nursing facilities, senior housing and senior housing–RIDEA. Our medical office buildings are typically leased to multiple tenants under separate leases in each building, thus requiring active management and responsibility for many of the associated operating expenses (although many of these are, or can effectively be, passed through to the tenants). Our hospital investments are primarily single tenant properties which lease the facilities to unaffiliated tenants under “triple-net” and generally “master” leases that transfer the obligation for all facility operating costs (including maintenance, repairs, taxes, insurance and capital expenditures) to the tenant. Our skilled nursing facilities and senior housing facilities are acquired and similarly structured as our hospital investments. Our senior housing–RIDEA properties include senior housing facilities that are owned and operated utilizing a RIDEA structure. | ||||||||||||||||||||||||
We evaluate performance based upon net operating income of the combined properties in each segment. We define net operating income, a non-GAAP financial measure, as total revenues, less rental expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses, interest expense, foreign currency and derivative loss, interest income and income tax benefit. We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment net operating income serves as a useful supplement to net income (loss) because it allows investors and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. Segment net operating income should not be considered as an alternative to net income (loss) determined in accordance with GAAP as an indicator of our financial performance, and, accordingly, we believe that in order to facilitate a clear understanding of our consolidated historical operating results, segment operating income should be examined in conjunction with net income (loss) as presented in our accompanying condensed consolidated financial statements. | ||||||||||||||||||||||||
Interest expense, depreciation and amortization and other expenses not attributable to individual properties are not allocated to individual segments for purposes of assessing segment performance. | ||||||||||||||||||||||||
Non-segment assets primarily consist of corporate assets including cash and cash equivalents, real estate and escrow deposits, deferred financing costs, other receivables and other assets not attributable to individual properties. | ||||||||||||||||||||||||
Summary information for the reportable segments during the three months ended March 31, 2014 and 2013 was as follows: | ||||||||||||||||||||||||
Medical Office Buildings | Skilled Nursing Facilities | Hospitals | Senior Housing | Senior Housing–RIDEA | Three Months Ended | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Real estate revenue | $ | 39,266,000 | $ | 13,205,000 | $ | 6,250,000 | $ | 13,547,000 | $ | — | $ | 72,268,000 | ||||||||||||
Resident fees and services | — | — | — | — | 19,188,000 | 19,188,000 | ||||||||||||||||||
Total revenues | 39,266,000 | 13,205,000 | 6,250,000 | 13,547,000 | 19,188,000 | 91,456,000 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Rental expenses | 12,588,000 | 3,134,000 | 850,000 | 554,000 | 14,185,000 | 31,311,000 | ||||||||||||||||||
Segment net operating income | $ | 26,678,000 | $ | 10,071,000 | $ | 5,400,000 | $ | 12,993,000 | $ | 5,003,000 | $ | 60,145,000 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
General and administrative | 8,186,000 | |||||||||||||||||||||||
Acquisition related expenses | 1,642,000 | |||||||||||||||||||||||
Depreciation and amortization | 33,601,000 | |||||||||||||||||||||||
Income from operations | 16,716,000 | |||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium): | ||||||||||||||||||||||||
Interest expense | (5,093,000 | ) | ||||||||||||||||||||||
Gain in fair value of derivative financial instruments | 50,000 | |||||||||||||||||||||||
Foreign currency and derivative loss | (2,222,000 | ) | ||||||||||||||||||||||
Interest income | 3,000 | |||||||||||||||||||||||
Income before income taxes | $ | 9,454,000 | ||||||||||||||||||||||
Medical Office Buildings | Skilled Nursing Facilities | Hospitals | Senior Housing | Senior Housing–RIDEA | Three Months Ended | |||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Real estate revenue | $ | 21,454,000 | $ | 10,750,000 | $ | 5,651,000 | $ | 2,363,000 | $ | — | $ | 40,218,000 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Rental expenses | 6,633,000 | 796,000 | 655,000 | 156,000 | — | 8,240,000 | ||||||||||||||||||
Segment net operating income | $ | 14,821,000 | $ | 9,954,000 | $ | 4,996,000 | $ | 2,207,000 | $ | — | $ | 31,978,000 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
General and administrative | 4,070,000 | |||||||||||||||||||||||
Acquisition related expenses | 3,605,000 | |||||||||||||||||||||||
Depreciation and amortization | 14,818,000 | |||||||||||||||||||||||
Income from operations | 9,485,000 | |||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium): | ||||||||||||||||||||||||
Interest expense | (4,077,000 | ) | ||||||||||||||||||||||
Gain in fair value of derivative financial instruments | 89,000 | |||||||||||||||||||||||
Interest income | 3,000 | |||||||||||||||||||||||
Income before income taxes | $ | 5,500,000 | ||||||||||||||||||||||
Assets by reportable segment as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Medical office buildings | $ | 1,331,072,000 | $ | 1,296,336,000 | ||||||||||||||||||||
Senior housing | 718,388,000 | 699,420,000 | ||||||||||||||||||||||
Skilled nursing facilities | 446,262,000 | 405,774,000 | ||||||||||||||||||||||
Senior housing–RIDEA | 310,126,000 | 313,279,000 | ||||||||||||||||||||||
Hospitals | 197,459,000 | 194,847,000 | ||||||||||||||||||||||
All other | 6,478,000 | 19,070,000 | ||||||||||||||||||||||
Total assets | $ | 3,009,785,000 | $ | 2,928,726,000 | ||||||||||||||||||||
Our portfolio of properties and other investments are located in the United States and the United Kingdom. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for our operations for the periods presented: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
United States | $ | 80,525,000 | $ | 40,218,000 | ||||||||||||||||||||
United Kingdom | 10,931,000 | — | ||||||||||||||||||||||
Total revenues | $ | 91,456,000 | $ | 40,218,000 | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Real estate investments, net: | ||||||||||||||||||||||||
United States | $ | 2,050,319,000 | $ | 1,965,110,000 | ||||||||||||||||||||
United Kingdom | 559,125,000 | 558,589,000 | ||||||||||||||||||||||
Total real estate investments, net | $ | 2,609,444,000 | $ | 2,523,699,000 | ||||||||||||||||||||
Concentration_of_Credit_Risk
Concentration of Credit Risk | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to a concentration of credit risk are primarily real estate notes receivable, cash and cash equivalents, accounts and other receivable, restricted cash and escrow deposits. We are exposed to credit risk with respect to the real estate notes receivable but we believe collection of the outstanding amount is probable and that the risk is further mitigated as the real estate notes receivable are secured by property and there is a guarantee of completion agreement executed between the parent company of the borrowers and us. Cash is generally invested in investment-grade, short-term instruments with a maturity of three months or less when purchased. We have cash in financial institutions that is insured by the Federal Deposit Insurance Corporation, or FDIC. As of March 31, 2014 and December 31, 2013, we had cash and cash equivalents, restricted cash accounts and escrow deposits in excess of FDIC insured limits. We believe this risk is not significant. Concentration of credit risk with respect to accounts receivable from tenants is limited. We perform credit evaluations of prospective tenants, and security deposits are obtained upon lease execution. | |||||||||||||||||
Based on leases in effect as of March 31, 2014, no one state in the United States accounted for 10.0% or more of our annualized base rent. However, we own UK Senior Housing Portfolio located in the United Kingdom, which accounted for 14.7% of our annualized base rent as of March 31, 2014. Accordingly, there is a geographic concentration of risk subject to fluctuations in the United Kingdom's economy. | |||||||||||||||||
Based on leases in effect as of March 31, 2014, our five reportable business segments, medical office buildings, skilled nursing facilities, senior housing, senior housing–RIDEA and hospitals, accounted for 46.3%, 19.0%, 18.3%, 8.5% and 7.9%, respectively, of our annualized base rent. As of March 31, 2014, rental payments by one of our tenants at our properties accounted for 10.0% or more of our annualized base rent, as follows: | |||||||||||||||||
Tenant | 2014 Annualized | Percentage of | Property | Reportable Segment | GLA | Lease Expiration | |||||||||||
Base Rent(1) | Annualized | (Sq Ft) | Date(2) | ||||||||||||||
Base Rent | |||||||||||||||||
Myriad Healthcare Limited(3) | £ | 21,610,000 | 14.7 | % | UK Senior Housing Portfolio | Senior Housing | 962,000 | 9/10/48 | |||||||||
__________ | |||||||||||||||||
-1 | Annualized base rent is based on contractual base rent from leases in effect as of March 31, 2014 and was approximately $36,011,000 based on the currency exchange rate as of March 31, 2014. The loss of this tenant or its inability to pay rent could have a material adverse effect on our business and results of operations. | ||||||||||||||||
-2 | UK Senior Housing Portfolio is leased to one tenant under a 35-year absolute net lease with lease termination options on October 1, 2028 and October 1, 2038. | ||||||||||||||||
-3 | As of March 31, 2014, we had advanced £10,974,000, or approximately $18,288,000 based on the currency exchange rate as of March 31, 2014, under real estate notes receivable, to affiliates of Myriad Healthcare Limited. See Note 4, Real Estate Notes Receivable, Net, for a further discussion. |
Per_Share_Data
Per Share Data | 3 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
Per Share Data | ' |
Per Share Data | |
We report earnings (loss) per share pursuant to ASC Topic 260, Earnings per Share. Basic earnings (loss) per share for all periods presented are computed by dividing net income (loss) allocated to controlling interest by the weighted average number of shares of our common stock outstanding during the period. Net income (loss) allocated to controlling interest is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of$61,000 and $13,000, respectively, for the three months ended March 31, 2014 and 2013. Diluted earnings (loss) per share are computed based on the weighted average number of shares of our common stock and all potentially dilutive securities, if any. Nonvested shares of our restricted common stock and exchangeable limited partnership units of our operating partnership are participating securities and give rise to potentially dilutive shares of our common stock. As of March 31, 2014 and 2013, there were 95,232 and 28,500 nonvested shares, respectively, of our restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during these periods. As of March 31, 2014 and 2013, there were 281,800 and 51,900 units, respectively, of exchangeable limited partnership units of our operating partnership outstanding, but such units were also excluded from the computation of diluted earnings per share because such units were anti-dilutive during these periods. |
Subsequent_Events
Subsequent Events | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Subsequent Events [Abstract] | ' | ||||||||||||||||||
Subsequent Events | ' | ||||||||||||||||||
Subsequent Events | |||||||||||||||||||
Share Repurchases | |||||||||||||||||||
In April 2014, we repurchased 280,031 shares of our common stock, for an aggregate amount of $2,730,000, under our share repurchase plan. | |||||||||||||||||||
Property Acquisition | |||||||||||||||||||
Subsequent to March 31, 2014, we completed the acquisition of one building from an unaffiliated party. The aggregate purchase price of this property was $13,700,000 and we paid $356,000 in acquisition fees to our sub-advisor in connection with this acquisition. We have not yet measured the fair value of the tangible and identified intangible assets and liabilities of the acquisition. The following is a summary of our property acquisition subsequent to March 31, 2014: | |||||||||||||||||||
Acquisition(1) | Location | Type | Date | Purchase | Line of | Acquisition Fee(3) | |||||||||||||
Acquired | Price | Credit(2) | |||||||||||||||||
Surgical Hospital of Humble(4) | Humble, TX | Medical Office | 4/1/14 | $ | 13,700,000 | $ | 13,650,000 | $ | 356,000 | ||||||||||
______________ | |||||||||||||||||||
-1 | We own 100% of our property acquired subsequent to March 31, 2014. | ||||||||||||||||||
-2 | Represents borrowings under our unsecured line of credit at the time of acquisition. We periodically advance funds and pay down our unsecured line of credit as needed. | ||||||||||||||||||
-3 | Our advisor entities and their affiliates were paid in cash, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.60% of the contract purchase price. | ||||||||||||||||||
-4 | On April 1, 2014, we added one additional building to our existing Surgical Hospital of Humble Portfolio. The other building was purchased in December 2010. | ||||||||||||||||||
Related Party Transaction | |||||||||||||||||||
On April 10, 2014, American Healthcare Investors, acting as managing member of our sub-advisor and Griffin-American Healthcare REIT III Advisor, LLC, the advisor of Griffin-American Healthcare REIT III, Inc., or GA Healthcare REIT III, another publicly registered non-traded healthcare REIT also co-sponsored by American Healthcare Investors, adopted an asset allocation policy that would apply until June 30, 2014 to allocate property acquisitions among us and GA Healthcare REIT III. Pursuant to the asset allocation policy, American Healthcare Investors will allocate potential investment opportunities to us and GA Healthcare REIT III based on the consideration of certain factors for each company such as investment objectives; the availability of cash and/or financing to acquire the investment; financial impact; strategic advantages; concentration and/or diversification; and income tax effects. | |||||||||||||||||||
After consideration and analysis of such factors, if American Healthcare Investors determines that the investment opportunity is suitable for both companies, then: (i) we will have priority for (a) investment opportunities of $100,000,000 or greater and (b) international investments, until such time as we reach 30% portfolio leverage (calculated by dividing debt by contract purchase price and based on equity existing as of January 1, 2014); and (ii) GA Healthcare REIT III will have priority for investment opportunities of $20,000,000 or less, until such time as GA Healthcare REIT III reaches $500,000,000 in aggregate assets (based on contract purchase price). In the event all acquisition allocation factors have been exhausted and an investment opportunity remains equally suitable for us and GA Healthcare REIT III, the investment opportunity will be offered to the company that has had the longest period of time elapse since it was offered an investment opportunity. | |||||||||||||||||||
Amendment to Our Operating Partnership Agreement | |||||||||||||||||||
On April 26, 2014, we amended and restated our operating partnership’s agreement of limited partnership. The material terms of the amended and restated agreement of limited partnership, among other things, amended certain provisions in the agreement of limited partnership with respect to the calculation of certain distributions that are payable to our advisor upon (i) a distribution of net sales proceeds (as determined by us in our sole discretion in our capacity as general partner), (ii) a listing of shares of our common stock on a national securities exchange, (iii) a termination or expiration of our advisor’s services pursuant to the Advisory Agreement, and (iv) certain other liquidity events, (including a merger). The amended and restated agreement of limited partnership also provides for a distribution that would be payable to our advisor upon a termination of the Advisory Agreement in connection with a merger or any other transaction of ours or our operating partnership with another entity where all of our stockholders receive cash and/or shares of such entity's (or such entity’s affiliate’s) common stock and/or other securities, in each case that are traded on a national securities exchange, in exchange for their shares of our capital stock or interests in our operating partnership. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership, the wholly owned subsidiaries of our operating partnership and all non-wholly owned subsidiaries and any variable interest entities, or VIEs, as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810, which we have concluded should be consolidated pursuant to ASC Topic 810. | |
We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the properties acquired on our behalf. We are the sole general partner of our operating partnership and as of March 31, 2014 and December 31, 2013, we owned greater than a 99.90% general partnership interest therein. On January 4, 2012, our advisor contributed $2,000 to acquire 200 limited partnership units of our operating partnership and as such, as of March 31, 2014 and December 31, 2013, owns less than a 0.01% noncontrolling limited partnership interest in our operating partnership. Between December 31, 2012 and July 16, 2013, 12 investors contributed their interests in 15 buildings in exchange for 281,600 limited partnership units in our operating partnership. As of March 31, 2014 and December 31, 2013, these investors collectively owned less than a 0.10% noncontrolling limited partnership interest in our operating partnership. Because we are the sole general partner and a limited partner of our operating partnership and have unilateral control over its management and major operating decisions, the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All significant intercompany accounts and transactions are eliminated in consolidation. | |
Interim Unaudited Financial Data | ' |
Interim Unaudited Financial Data | |
Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments, which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. | |
In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2013 Annual Report on Form 10-K/A, as filed with the SEC on March 21, 2014. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. | |
Tenant Receivables and Allowance for Uncollectible Accounts | ' |
Allowance for Uncollectible Accounts | |
Tenant receivables and unbilled deferred rent receivables are carried net of an allowance for uncollectible amounts. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. We maintain an allowance for deferred rent receivables arising from the straight line recognition of rents. Such allowance is charged to bad debt expense which is included in general and administrative in our accompanying condensed consolidated statements of operations and comprehensive income. Our determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant's financial condition, security deposits, letters of credit, lease guarantees and current economic conditions and other relevant factors. | |
As of March 31, 2014 and December 31, 2013, we had $210,000 and $323,000, respectively, in allowance for uncollectible accounts which was determined necessary to reduce receivables to our estimate of the amount recoverable. For the three months ended March 31, 2014 and 2013, $0 and $91,000, respectively, of our receivables were directly written off to bad debt expense. As of March 31, 2014 and December 31, 2013, we did not have an allowance for uncollectible accounts for deferred rent receivables. For the three months ended March 31, 2014 and 2013, $1,000 and $11,000, respectively, of our deferred rent receivables were directly written off to bad debt expense. | |
Income Taxes | ' |
Income Taxes | |
We qualified and elected to be taxed as a REIT under the Code beginning with our taxable year ended December 31, 2010. To maintain our qualification as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90.0% of our annual taxable income, excluding net capital gains, to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. | |
If we fail to maintain our qualification as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service, or the IRS, grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. | |
We may be subject to certain state and local income taxes on our income, property or net worth in some jurisdictions, and in certain circumstances we may also be subject to federal excise taxes on undistributed income. In addition, certain activities that we undertake are conducted by subsidiaries which we elected to be treated as taxable REIT subsidiaries, or TRSs, to allow us to provide services that would otherwise be considered impermissible for REITs. Also, we have real estate investments in the United Kingdom, which does not recognize REITs and does not accord REIT status under its tax laws. Accordingly, we recognize income tax benefit (expense) for the federal, state and local income taxes incurred by our TRSs and foreign income taxes for our real estate investments in the United Kingdom. | |
We follow ASC Topic 740, Income Taxes, to recognize, measure, present and disclose in our condensed consolidated financial statements uncertain tax positions that we have taken or expect to take on a tax return. We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would be sustained (including the impact of appeals, as applicable), assuming the applicable taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of March 31, 2014 and 2013, we did not have any tax benefits or liabilities for uncertain tax positions that we believe should be recognized in our condensed consolidated financial statements. | |
We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes us to change our judgment about the realizability of the related deferred tax asset, is also included in income tax benefit (expense) in our accompanying condensed consolidated statements of operations and comprehensive income when such changes occur. Deferred tax assets, net of valuation allowances are included in other assets in our accompanying condensed consolidated balance sheets. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes us to change our judgment about expected future tax consequences of events, is recorded in income tax benefit (expense) in our accompanying condensed consolidated statements of operations and comprehensive income when such changes occur. Deferred tax liabilities are included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets. | |
See Note 15, Income Taxes, for a further discussion. | |
Recently Issued Accounting Pronouncement | ' |
Recently Issued Accounting Pronouncement | |
In April 2014, the FASB issued Accounting Standards Update, or ASU, 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08, which amends the definition of a discontinued operation to raise the threshold for disposals to qualify as discontinued operations and requires additional disclosures about disposal transactions. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component or group of components either (i) has been disposed of or (ii) is classified as held for sale. In addition, ASU 2014-08 requires additional disclosures about both (i) a disposal transaction that meets the definition of a discontinued operation and (ii) an individually significant component of an entity that is disposed of or held for sale that does not qualify for discontinued operations presentation in the financial statements. We anticipate that the majority of our property dispositions will not be classified as discontinued operations. ASU 2014-08 is effective prospectively for interim and annual reporting periods beginning after December 15, 2014 with early adoption permitted. We early adopted ASU 2014-08 on January 1, 2014, which did not have an impact on our condensed consolidated financial statements. |
Real_Estate_Investments_Net_Ta
Real Estate Investments, Net (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||
Investments in Consolidated Properties | ' | ||||||||||||||||||
Our real estate investments, net consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Building and improvements | $ | 2,280,810,000 | $ | 2,189,345,000 | |||||||||||||||
Land | 428,642,000 | 414,179,000 | |||||||||||||||||
Furniture, fixtures and equipment | 6,420,000 | 6,410,000 | |||||||||||||||||
2,715,872,000 | 2,609,934,000 | ||||||||||||||||||
Less: accumulated depreciation | (106,428,000 | ) | (86,235,000 | ) | |||||||||||||||
$ | 2,609,444,000 | $ | 2,523,699,000 | ||||||||||||||||
Summary of acquisitions | ' | ||||||||||||||||||
Acquisitions in 2014 | |||||||||||||||||||
For the three months ended March 31, 2014, we completed four property acquisitions comprising seven buildings from unaffiliated parties. The aggregate purchase price of these properties was $104,650,000 and we incurred $2,721,000 to our advisor entities and their affiliates in acquisition fees in connection with these property acquisitions. The following is a summary of our property acquisitions for the three months ended March 31, 2014: | |||||||||||||||||||
Acquisition(1) | Location | Type | Date Acquired | Purchase | Line of | Acquisition Fee(3) | |||||||||||||
Price | Credit(2) | ||||||||||||||||||
Dux MOB Portfolio(4) | Chillicothe, OH | Medical Office | 1/9/14 | $ | 25,150,000 | $ | 23,500,000 | $ | 654,000 | ||||||||||
North Carolina ALF Portfolio(5) | Durham, NC | Senior Housing | 2/6/14 | 21,000,000 | 21,600,000 | 546,000 | |||||||||||||
Pennsylvania SNF Portfolio(6) | Royersford, PA | Skilled Nursing | 3/6/14 | 39,000,000 | 40,530,000 | 1,014,000 | |||||||||||||
Eagle Carson City MOB | Carson City, NV | Medical Office | 3/19/14 | 19,500,000 | 11,000,000 | 507,000 | |||||||||||||
Total | $ | 104,650,000 | $ | 96,630,000 | $ | 2,721,000 | |||||||||||||
___________ | |||||||||||||||||||
-1 | We own 100% of our properties acquired in 2014. | ||||||||||||||||||
-2 | Represents borrowings under our unsecured revolving line of credit, as defined in Note 9, Line of Credit, at the time of acquisition. We periodically advance funds and pay down our unsecured revolving line of credit as needed. See Note 9, Line of Credit, for a further discussion. | ||||||||||||||||||
-3 | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. | ||||||||||||||||||
-4 | On January 9, 2014, we added one additional building to our existing Dux MOB Portfolio. The other 14 buildings were purchased in December 2013. | ||||||||||||||||||
-5 | On February 6, 2014, we added one additional building to our existing North Carolina ALF Portfolio. The other five buildings were purchased in December 2012. | ||||||||||||||||||
-6 | On March 6, 2014, we added four additional buildings to our existing Pennsylvania SNF Portfolio. The other two buildings were purchased in April 2013. |
Real_Estate_Notes_Receivable_T
Real Estate Notes Receivable (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Real Estate Notes Receivable | ' | ||||||||||||||||||||||
Real Estate Notes Receivable, Net | ' | ||||||||||||||||||||||
Real estate notes receivable, net consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||
Outstanding Balance(2) | |||||||||||||||||||||||
Notes Receivable | Origination Date | Maturity Date | Contractual Interest Rate(1) | Maximum Advances Available | March 31, 2014 | December 31, 2013 | Acquisition Fee(3) | ||||||||||||||||
Location of Related Property or Collateral | |||||||||||||||||||||||
UK Development Facility(4) | |||||||||||||||||||||||
United Kingdom | 9/11/13 | various | 7.50% | $ | 111,133,000 | $ | 18,288,000 | $ | 16,593,000 | $ | 353,000 | ||||||||||||
Kissito Note | |||||||||||||||||||||||
Roanoke, VA | 9/20/13 | 3/19/15 | 7.25% | $ | 4,400,000 | 2,845,000 | 2,002,000 | 57,000 | |||||||||||||||
Landmark Naples Note | |||||||||||||||||||||||
Naples, FL | 3/28/14 | 3/28/16 | 6.00% | $ | 18,900,000 | 3,801,000 | — | 76,000 | |||||||||||||||
24,934,000 | 18,595,000 | $ | 486,000 | ||||||||||||||||||||
Unamortized closing costs and origination fees, net | 153,000 | 293,000 | |||||||||||||||||||||
Real estate notes receivable, net | $ | 25,087,000 | $ | 18,888,000 | |||||||||||||||||||
___________ | |||||||||||||||||||||||
-1 | Represents the per annum interest rate in effect as of March 31, 2014. | ||||||||||||||||||||||
-2 | Outstanding balance represents the original principal balance, increased by any subsequent advances and decreased by any subsequent principal paydowns, and only requires monthly interest payments. The UK Development Facility is subject to certain prepayment restrictions if repaid on or before the maturity date. | ||||||||||||||||||||||
-3 | Our sub-advisor was paid, as compensation for services in connection with real estate-related investments, an acquisition fee of 2.00% of the total amount advanced through March 31, 2014. | ||||||||||||||||||||||
-4 | We entered into the UK Development Facility agreement on July 6, 2013, which was effective upon the acquisition of UK Senior Housing Portfolio on September 11, 2013. There are various maturity dates depending upon the timing of advances; however, the maturity date will be no later than March 10, 2022. Based on the currency exchange rate as of March 31, 2014, the maximum amount of advances available was £66,691,000, or approximately $111,133,000, and the outstanding balance as of March 31, 2014 was £10,974,000, or approximately $18,288,000. | ||||||||||||||||||||||
Changes in Carrying Amount of Real Estate Notes Receivable | ' | ||||||||||||||||||||||
The following shows the change in the carrying amount of real estate notes receivable, net for the three months ended March 31, 2014 and 2013: | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Beginning balance | $ | 18,888,000 | $ | 5,182,000 | |||||||||||||||||||
Additions: | |||||||||||||||||||||||
Advances on real estate notes receivable | 6,216,000 | 3,385,000 | |||||||||||||||||||||
Closing costs and origination fees, net | (64,000 | ) | 68,000 | ||||||||||||||||||||
Unrealized foreign currency gain from remeasurement | 123,000 | — | |||||||||||||||||||||
Deductions: | |||||||||||||||||||||||
Amortization of closing costs and origination fees | (76,000 | ) | (25,000 | ) | |||||||||||||||||||
Ending balance | $ | 25,087,000 | $ | 8,610,000 | |||||||||||||||||||
Identified_Intangible_Assets_N1
Identified Intangible Assets, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | |||||||
Identified intangible assets, net | ' | |||||||
Identified intangible assets, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Tenant relationships, net of accumulated amortization of $14,480,000 and $11,128,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 17.6 years and 17.8 years as of March 31, 2014 and December 31, 2013, respectively) | $ | 132,476,000 | $ | 131,816,000 | ||||
In-place leases, net of accumulated amortization of $31,048,000 and $23,364,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 8.1 years as of March 31, 2014 and December 31, 2013) | 116,592,000 | 123,780,000 | ||||||
Leasehold interests, net of accumulated amortization of $729,000 and $658,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 63.6 years and 63.8 years as of March 31, 2014 and December 31, 2013, respectively) | 16,006,000 | 16,077,000 | ||||||
Above market leases, net of accumulated amortization of $3,931,000 and $3,466,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 6.4 years and 6.6 years as of March 31, 2014 and December 31, 2013, respectively) | 13,396,000 | 13,400,000 | ||||||
Defeasible interest, net of accumulated amortization of $32,000 and $29,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 39.5 years and 39.8 years as of March 31, 2014 and December 31, 2013, respectively) | 591,000 | 594,000 | ||||||
$ | 279,061,000 | $ | 285,667,000 | |||||
Amortization expense on identified intangible assets | ' | |||||||
As of March 31, 2014, estimated amortization expense on the identified intangible assets for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | ||||||||
Year | Amount | |||||||
2014 | $ | 38,874,000 | ||||||
2015 | 25,794,000 | |||||||
2016 | 23,583,000 | |||||||
2017 | 21,517,000 | |||||||
2018 | 19,721,000 | |||||||
Thereafter | 149,572,000 | |||||||
$ | 279,061,000 | |||||||
Other_Assets_Net_Tables
Other Assets, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Assets [Abstract] | ' | |||||||
Other Assets, Net | ' | |||||||
Other assets, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deferred rent receivables | $ | 30,491,000 | $ | 24,494,000 | ||||
Deferred financing costs, net of accumulated amortization of $4,379,000 and $3,627,000 as of March 31, 2014 and December 31, 2013, respectively | 5,534,000 | 6,282,000 | ||||||
Prepaid expenses and deposits | 3,196,000 | 2,485,000 | ||||||
Lease commissions, net of accumulated amortization of $517,000 and $393,000 as of March 31, 2014 and December 31, 2013, respectively | 5,414,000 | 4,677,000 | ||||||
$ | 44,635,000 | $ | 37,938,000 | |||||
Estimated Amortization Expense on Deferred Financing Costs and Lease Commissions | ' | |||||||
Estimated amortization expense on deferred financing costs and lease commissions as of March 31, 2014 for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | ||||||||
Year | Amount | |||||||
2014 | $ | 2,685,000 | ||||||
2015 | 2,124,000 | |||||||
2016 | 979,000 | |||||||
2017 | 807,000 | |||||||
2018 | 714,000 | |||||||
Thereafter | 3,639,000 | |||||||
$ | 10,948,000 | |||||||
Mortgage_Loans_Payable_Net_Tab
Mortgage Loans Payable, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
Mortgage Loans Payable | ' | ||||||||
Mortgage loans payable, net consisted of the following as of March 31, 2014 and December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Total fixed rate debt | $ | 298,385,000 | $ | 299,680,000 | |||||
Total variable rate debt | 15,891,000 | 16,042,000 | |||||||
314,276,000 | 315,722,000 | ||||||||
Less: discount | (208,000 | ) | (216,000 | ) | |||||
Add: premium | 13,367,000 | 13,970,000 | |||||||
Mortgage loans payable, net | $ | 327,435,000 | $ | 329,476,000 | |||||
Change in Carrying Amount of Mortgage Loans Payable, Net | ' | ||||||||
The following shows the change in the carrying amount of mortgage loans payable, net for the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 329,476,000 | $ | 291,052,000 | |||||
Additions: | |||||||||
Assumption of mortgage loans payable, net | — | 7,088,000 | |||||||
Deductions: | |||||||||
Scheduled principal payments on mortgage loans payable | (1,446,000 | ) | (1,136,000 | ) | |||||
Amortization of premium/discount on mortgage loans payable | (595,000 | ) | (384,000 | ) | |||||
Ending balance | $ | 327,435,000 | $ | 296,620,000 | |||||
Principal Payments Due on Mortgage Loans Payable | ' | ||||||||
As of March 31, 2014, the principal payments due on our mortgage loans payable for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | |||||||||
Year | Amount | ||||||||
2014 | $ | 13,930,000 | |||||||
2015 | 41,968,000 | ||||||||
2016 | 50,318,000 | ||||||||
2017 | 24,779,000 | ||||||||
2018 | 40,064,000 | ||||||||
Thereafter | 143,217,000 | ||||||||
$ | 314,276,000 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Financial Instruments Held | ' | |||||||||||||||
The following table lists the interest rate swap contracts held by us as of March 31, 2014: | ||||||||||||||||
Notional Amount | Index | Interest Rate | Fair Value | Instrument | Maturity Date | |||||||||||
$ | 2,418,000 | one month LIBOR | 6 | % | $ | (298,000 | ) | Swap | 8/15/21 | |||||||
6,718,000 | one month LIBOR | 4.28 | % | (10,000 | ) | Swap | 5/1/14 | |||||||||
6,755,000 | one month LIBOR | 4.11 | % | (93,000 | ) | Swap | 10/1/15 | |||||||||
$ | 15,891,000 | $ | (401,000 | ) | ||||||||||||
The following table lists the interest rate swap contracts held by us as of December 31, 2013: | ||||||||||||||||
Notional Amount | Index | Interest Rate | Fair Value | Instrument | Maturity Date | |||||||||||
$ | 2,483,000 | one month LIBOR | 6 | % | $ | (309,000 | ) | Swap | 8/15/21 | |||||||
6,798,000 | one month LIBOR | 4.41 | % | — | Swap | 1/1/14 | ||||||||||
6,761,000 | one month LIBOR | 4.28 | % | (39,000 | ) | Swap | 5/1/14 | |||||||||
6,784,000 | one month LIBOR | 4.11 | % | (103,000 | ) | Swap | 10/1/15 | |||||||||
$ | 22,826,000 | $ | (451,000 | ) | ||||||||||||
Identified_Intangible_Liabilit1
Identified Intangible Liabilities, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Intangible Liabilities [Abstract] | ' | |||||||
Summary of Identified Intangibles, Net | ' | |||||||
Identified intangible liabilities, net consisted of the following as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Below market leases, net of accumulated amortization of $1,077,000 and $887,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 7.6 years and 7.8 years as of March 31, 2014 and December 31, 2013, respectively) | $ | 6,573,000 | $ | 6,884,000 | ||||
Above market leasehold interests, net of accumulated amortization of $110,000 and $83,000 as of March 31, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 69.9 years and 70.0 years as of March 31, 2014 and December 31, 2013, respectively) | 4,783,000 | 4,809,000 | ||||||
$ | 11,356,000 | $ | 11,693,000 | |||||
Summary of Amortization Expense on Below Market Leases and Above Market Leasehold Interest | ' | |||||||
As of March 31, 2014, estimated amortization expense on below market leases and above market leasehold interests for the nine months ending December 31, 2014 and for each of the next four years ending December 31 and thereafter was as follows: | ||||||||
Year | Amount | |||||||
2014 | $ | 947,000 | ||||||
2015 | 1,191,000 | |||||||
2016 | 1,121,000 | |||||||
2017 | 965,000 | |||||||
2018 | 856,000 | |||||||
Thereafter | 6,276,000 | |||||||
$ | 11,356,000 | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Amounts Invested and Shares of Common Stock Issued Pursuant to the Executive Stock Purchase Plan | ' | |||||||||
For the three months ended March 31, 2013, our executive officers invested the following amounts and we issued the following shares of our common stock pursuant to the applicable stock purchase plan: | ||||||||||
Three Months Ended | ||||||||||
March 31, 2013 | ||||||||||
Officer's Name | Title | Amount | Shares | |||||||
Jeffrey T. Hanson | Chairman of the Board of Directors and Chief Executive Officer | $ | 20,000 | 2,169 | ||||||
Danny Prosky | President and Chief Operating Officer | 14,000 | 1,565 | |||||||
Mathieu B. Streiff | Executive Vice President, General Counsel | 13,000 | 1,391 | |||||||
Shannon K S Johnson | Chief Financial Officer | 5,000 | 548 | |||||||
Stefan K.L. Oh | Senior Vice President of Acquisitions | 3,000 | 341 | |||||||
Cora Lo | Secretary | 3,000 | 309 | |||||||
$ | 58,000 | 6,323 | ||||||||
Schedule of Amount Outstanding to Affiliates | ' | |||||||||
The following amounts were outstanding to our affiliates as of March 31, 2014 and December 31, 2013: | ||||||||||
March 31, | December 31, | |||||||||
Fee | 2014 | 2013 | ||||||||
Asset and property management fees | $ | 2,568,000 | $ | 2,201,000 | ||||||
Lease commissions | 353,000 | 83,000 | ||||||||
Construction management fees | 106,000 | 94,000 | ||||||||
Offering costs | — | 28,000 | ||||||||
Operating expenses | 3,000 | 1,000 | ||||||||
$ | 3,030,000 | $ | 2,407,000 | |||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income | ' | |||||||||||
For the three months ended March 31, 2013, we did not have other comprehensive income. The changes in accumulated other comprehensive income net of noncontrolling interests by component consisted of the following for the three months ended March 31, 2014: | ||||||||||||
Gains on Intra-Entity Foreign Currency Transactions That Are of a Long-Term Investment Nature | Foreign Currency Translation Adjustments | Total | ||||||||||
Balance — December 31, 2013 | $ | 22,037,000 | $ | 739,000 | $ | 22,776,000 | ||||||
Net change in current period | 3,191,000 | 104,000 | 3,295,000 | |||||||||
Balance — March 31, 2014 | $ | 25,228,000 | $ | 843,000 | $ | 26,071,000 | ||||||
Status and Changes of Nonvested Shares of Restricted Common Stock | ' | |||||||||||
A summary of the status of the nonvested shares of our restricted common stock as of March 31, 2014 and December 31, 2013, and the changes for the three months ended March 31, 2014, is presented below: | ||||||||||||
Number of Nonvested | Weighted | |||||||||||
Shares of our | Average Grant | |||||||||||
Restricted Common Stock | Date Fair Value | |||||||||||
Balance — December 31, 2013 | 30,000 | $ | 10.19 | |||||||||
Granted | 81,540 | $ | 10.22 | |||||||||
Vested | (16,308 | ) | $ | 10.22 | ||||||||
Forfeited | — | $ | — | |||||||||
Balance — March 31, 2014 | 95,232 | $ | 10.21 | |||||||||
Expected to vest — March 31, 2014 | 95,232 | $ | 10.21 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||
The table below presents our assets and liabilities measured at fair value on a recurring basis as of March 31, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall. | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
and Liabilities | (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | — | 401,000 | $ | — | $ | 401,000 | |||||||||
Foreign currency forward contract | — | 18,688,000 | — | 18,688,000 | ||||||||||||
Contingent consideration obligations | — | — | 4,386,000 | 4,386,000 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 19,089,000 | $ | 4,386,000 | $ | 23,475,000 | ||||||||
The table below presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall. | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
and Liabilities | (Level 3) | |||||||||||||||
(Level 1) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | — | $ | 451,000 | $ | — | $ | 451,000 | ||||||||
Foreign currency forward contract | — | 16,489,000 | — | 16,489,000 | ||||||||||||
Contingent consideration obligations | — | — | 4,675,000 | 4,675,000 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 16,940,000 | $ | 4,675,000 | $ | 21,615,000 | ||||||||
Fair Value Unobservable Inputs | ' | |||||||||||||||
The following table shows quantitative information about unobservable inputs related to Level 3 fair value measurements used as of March 31, 2014 and December 31, 2013 for our most significant contingent consideration obligation: | ||||||||||||||||
Property | Fair Value as of March 31, 2014 | Fair Value as of December 31, 2013 | Unobservable Inputs | Range of Inputs/Inputs | ||||||||||||
Pacific Northwest Senior Care Portfolio | $ | 3,026,000 | $ | 3,208,000 | Achieve Required Lease Coverage Ratios | Yes | ||||||||||
Total Estimated Cost of Tenant Improvements | $6,525,000 | |||||||||||||||
Percentage of Eligible Payment Requested | 100% | |||||||||||||||
___________ | ||||||||||||||||
Significant increases or decreases in any of the unobservable inputs in isolation in the aggregate would result in a significantly higher or lower fair value measurement to each contingent consideration obligation as of March 31, 2014 and December 31, 2013. Lastly, if the counterparty requests something less than 100% of the eligible payment, which they have the right to do, then the fair value would decrease. If the lease coverage ratio is not met for Pacific Northwest Senior Care Portfolio, then the fair value would decrease to $1,201,000 and $1,383,000 as of March 31, 2014 and December 31, 2013, respectively. A decrease in the total cost of the tenant improvements would decrease the fair value of the tenant improvement allowance. An increase in the total cost of the tenant improvements would have no impact on the payment. | ||||||||||||||||
The following is a reconciliation of the beginning and ending balances of our contingent consideration assets and obligations for the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Contingent Consideration Obligations: | ||||||||||||||||
Beginning balance | $ | 4,675,000 | $ | 60,204,000 | ||||||||||||
Additions to contingent consideration obligations | 100,000 | — | ||||||||||||||
Realized/unrealized (gains) losses recognized in earnings | (38,000 | ) | 458,000 | |||||||||||||
Settlements of obligations | (351,000 | ) | (1,047,000 | ) | ||||||||||||
Ending balance | $ | 4,386,000 | $ | 59,615,000 | ||||||||||||
Amount of total (gains) losses included in earnings attributable to the change in unrealized (gains) losses related to obligations still held | $ | (38,000 | ) | $ | 458,000 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | |||||||
Components of income (loss) before taxes for the three months ended March 31, 2014 was as follows: | ||||||||
Amount | ||||||||
Domestic | $ | 10,323,000 | ||||||
Foreign | (869,000 | ) | ||||||
Income before income taxes | $ | 9,454,000 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||
The components of income tax expense (benefit) for the three months ended March 31, 2014 was as follows: | ||||||||
Amount | ||||||||
Federal deferred | $ | (2,745,000 | ) | |||||
State deferred | (271,000 | ) | ||||||
Foreign current | 161,000 | |||||||
Foreign deferred | (745,000 | ) | ||||||
Valuation allowances | 2,968,000 | |||||||
Total income tax (benefit) | $ | (632,000 | ) | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||
The components of deferred tax assets and liabilities as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Deferred income tax assets: | ||||||||
Net operating loss | $ | 2,968,000 | $ | — | ||||
Valuation allowances | (2,968,000 | ) | — | |||||
Total deferred income tax assets | $ | — | $ | — | ||||
Deferred income tax liabilities: | ||||||||
Foreign – built-in-gains, real estate properties | $ | 47,165,000 | $ | 47,635,000 | ||||
Other – temporary differences | 2,727,000 | 2,730,000 | ||||||
Total deferred income tax liabilities | $ | 49,892,000 | $ | 50,365,000 | ||||
Business_Combinations_Tables
Business Combinations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Schedule of Revenues and Net Income (Loss) of Properties Acquired | ' | ||||||||
For the period from the acquisition date through March 31, 2013, we recognized the following amounts of revenue and net income for the property acquisitions: | |||||||||
Acquisition | Revenue | Net Income | |||||||
2013 Acquisitions | $ | 601,000 | $ | 291,000 | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||||||
The following summarizes the fair value of our 2013 property acquisitions at the time of acquisition: | |||||||||
2013 Acquisitions | |||||||||
Building and improvements | $ | 69,067,000 | |||||||
Land | 8,327,000 | ||||||||
In-place leases | 5,990,000 | ||||||||
Tenant relationships | 9,371,000 | ||||||||
Above market leases | 1,663,000 | ||||||||
Total assets acquired | 94,418,000 | ||||||||
Mortgage loans payable, net | (7,088,000 | ) | |||||||
Below market leases | (1,234,000 | ) | |||||||
Total liabilities assumed | (8,322,000 | ) | |||||||
Net assets acquired | $ | 86,096,000 | |||||||
Business Acquisition Pro Forma Information | ' | ||||||||
Assuming the property acquisitions in 2013 discussed above had occurred on January 1, 2012, for the three months ended March 31, 2013 and 2012, pro forma revenue, net (loss) income, net (loss) income attributable to controlling interest and net (loss) income per common share attributable to controlling interest — basic and diluted would have been as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 42,459,000 | $ | 21,603,000 | |||||
Net income (loss) | $ | 8,992,000 | $ | (2,772,000 | ) | ||||
Net income (loss) attributable to controlling interest | $ | 8,988,000 | $ | (2,772,000 | ) | ||||
Net income (loss) per common share attributable to controlling interest — basic and diluted | $ | 0.07 | $ | (0.05 | ) | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Summary Information for Reportable Segments | ' | |||||||||||||||||||||||
Summary information for the reportable segments during the three months ended March 31, 2014 and 2013 was as follows: | ||||||||||||||||||||||||
Medical Office Buildings | Skilled Nursing Facilities | Hospitals | Senior Housing | Senior Housing–RIDEA | Three Months Ended | |||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Real estate revenue | $ | 39,266,000 | $ | 13,205,000 | $ | 6,250,000 | $ | 13,547,000 | $ | — | $ | 72,268,000 | ||||||||||||
Resident fees and services | — | — | — | — | 19,188,000 | 19,188,000 | ||||||||||||||||||
Total revenues | 39,266,000 | 13,205,000 | 6,250,000 | 13,547,000 | 19,188,000 | 91,456,000 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Rental expenses | 12,588,000 | 3,134,000 | 850,000 | 554,000 | 14,185,000 | 31,311,000 | ||||||||||||||||||
Segment net operating income | $ | 26,678,000 | $ | 10,071,000 | $ | 5,400,000 | $ | 12,993,000 | $ | 5,003,000 | $ | 60,145,000 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
General and administrative | 8,186,000 | |||||||||||||||||||||||
Acquisition related expenses | 1,642,000 | |||||||||||||||||||||||
Depreciation and amortization | 33,601,000 | |||||||||||||||||||||||
Income from operations | 16,716,000 | |||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium): | ||||||||||||||||||||||||
Interest expense | (5,093,000 | ) | ||||||||||||||||||||||
Gain in fair value of derivative financial instruments | 50,000 | |||||||||||||||||||||||
Foreign currency and derivative loss | (2,222,000 | ) | ||||||||||||||||||||||
Interest income | 3,000 | |||||||||||||||||||||||
Income before income taxes | $ | 9,454,000 | ||||||||||||||||||||||
Medical Office Buildings | Skilled Nursing Facilities | Hospitals | Senior Housing | Senior Housing–RIDEA | Three Months Ended | |||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Real estate revenue | $ | 21,454,000 | $ | 10,750,000 | $ | 5,651,000 | $ | 2,363,000 | $ | — | $ | 40,218,000 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Rental expenses | 6,633,000 | 796,000 | 655,000 | 156,000 | — | 8,240,000 | ||||||||||||||||||
Segment net operating income | $ | 14,821,000 | $ | 9,954,000 | $ | 4,996,000 | $ | 2,207,000 | $ | — | $ | 31,978,000 | ||||||||||||
Expenses: | ||||||||||||||||||||||||
General and administrative | 4,070,000 | |||||||||||||||||||||||
Acquisition related expenses | 3,605,000 | |||||||||||||||||||||||
Depreciation and amortization | 14,818,000 | |||||||||||||||||||||||
Income from operations | 9,485,000 | |||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense (including amortization of deferred financing costs and debt discount/premium): | ||||||||||||||||||||||||
Interest expense | (4,077,000 | ) | ||||||||||||||||||||||
Gain in fair value of derivative financial instruments | 89,000 | |||||||||||||||||||||||
Interest income | 3,000 | |||||||||||||||||||||||
Income before income taxes | $ | 5,500,000 | ||||||||||||||||||||||
Assets by reportable segment as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Medical office buildings | $ | 1,331,072,000 | $ | 1,296,336,000 | ||||||||||||||||||||
Senior housing | 718,388,000 | 699,420,000 | ||||||||||||||||||||||
Skilled nursing facilities | 446,262,000 | 405,774,000 | ||||||||||||||||||||||
Senior housing–RIDEA | 310,126,000 | 313,279,000 | ||||||||||||||||||||||
Hospitals | 197,459,000 | 194,847,000 | ||||||||||||||||||||||
All other | 6,478,000 | 19,070,000 | ||||||||||||||||||||||
Total assets | $ | 3,009,785,000 | $ | 2,928,726,000 | ||||||||||||||||||||
Our portfolio of properties and other investments are located in the United States and the United Kingdom. Revenues and assets are attributed to the country in which the property is physically located. The following is a summary of geographic information for our operations for the periods presented: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
United States | $ | 80,525,000 | $ | 40,218,000 | ||||||||||||||||||||
United Kingdom | 10,931,000 | — | ||||||||||||||||||||||
Total revenues | $ | 91,456,000 | $ | 40,218,000 | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Real estate investments, net: | ||||||||||||||||||||||||
United States | $ | 2,050,319,000 | $ | 1,965,110,000 | ||||||||||||||||||||
United Kingdom | 559,125,000 | 558,589,000 | ||||||||||||||||||||||
Total real estate investments, net | $ | 2,609,444,000 | $ | 2,523,699,000 | ||||||||||||||||||||
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||
Schedule of Annualized Base Rent from Tenants at Consolidated Properties | ' | ||||||||||||||||
As of March 31, 2014, rental payments by one of our tenants at our properties accounted for 10.0% or more of our annualized base rent, as follows: | |||||||||||||||||
Tenant | 2014 Annualized | Percentage of | Property | Reportable Segment | GLA | Lease Expiration | |||||||||||
Base Rent(1) | Annualized | (Sq Ft) | Date(2) | ||||||||||||||
Base Rent | |||||||||||||||||
Myriad Healthcare Limited(3) | £ | 21,610,000 | 14.7 | % | UK Senior Housing Portfolio | Senior Housing | 962,000 | 9/10/48 | |||||||||
__________ | |||||||||||||||||
-1 | Annualized base rent is based on contractual base rent from leases in effect as of March 31, 2014 and was approximately $36,011,000 based on the currency exchange rate as of March 31, 2014. The loss of this tenant or its inability to pay rent could have a material adverse effect on our business and results of operations. | ||||||||||||||||
-2 | UK Senior Housing Portfolio is leased to one tenant under a 35-year absolute net lease with lease termination options on October 1, 2028 and October 1, 2038. | ||||||||||||||||
-3 | As of March 31, 2014, we had advanced £10,974,000, or approximately $18,288,000 based on the currency exchange rate as of March 31, 2014, under real estate notes receivable, to affiliates of Myriad Healthcare Limited. See Note 4, Real Estate Notes Receivable, Net, for a further discussion. |
Subsequent_Events_Tables
Subsequent Events (Tables) | 3 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | 13-May-14 | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ||||||||||||||||||||||||||||||||||||
Summary of acquisitions | ' | ' | ||||||||||||||||||||||||||||||||||||
Acquisitions in 2014 | The following is a summary of our property acquisition subsequent to March 31, 2014: | |||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014, we completed four property acquisitions comprising seven buildings from unaffiliated parties. The aggregate purchase price of these properties was $104,650,000 and we incurred $2,721,000 to our advisor entities and their affiliates in acquisition fees in connection with these property acquisitions. The following is a summary of our property acquisitions for the three months ended March 31, 2014: | ||||||||||||||||||||||||||||||||||||||
Acquisition(1) | Location | Type | Date | Purchase | Line of | Acquisition Fee(3) | ||||||||||||||||||||||||||||||||
Acquisition(1) | Location | Type | Date Acquired | Purchase | Line of | Acquisition Fee(3) | Acquired | Price | Credit(2) | |||||||||||||||||||||||||||||
Price | Credit(2) | Surgical Hospital of Humble(4) | Humble, TX | Medical Office | 4/1/14 | $ | 13,700,000 | $ | 13,650,000 | $ | 356,000 | |||||||||||||||||||||||||||
Dux MOB Portfolio(4) | Chillicothe, OH | Medical Office | 1/9/14 | $ | 25,150,000 | $ | 23,500,000 | $ | 654,000 | |||||||||||||||||||||||||||||
______________ | ||||||||||||||||||||||||||||||||||||||
North Carolina ALF Portfolio(5) | Durham, NC | Senior Housing | 2/6/14 | 21,000,000 | 21,600,000 | 546,000 | ||||||||||||||||||||||||||||||||
-1 | We own 100% of our property acquired subsequent to March 31, 2014. | |||||||||||||||||||||||||||||||||||||
Pennsylvania SNF Portfolio(6) | Royersford, PA | Skilled Nursing | 3/6/14 | 39,000,000 | 40,530,000 | 1,014,000 | ||||||||||||||||||||||||||||||||
-2 | Represents borrowings under our unsecured line of credit at the time of acquisition. We periodically advance funds and pay down our unsecured line of credit as needed. | |||||||||||||||||||||||||||||||||||||
Eagle Carson City MOB | Carson City, NV | Medical Office | 3/19/14 | 19,500,000 | 11,000,000 | 507,000 | ||||||||||||||||||||||||||||||||
-3 | Our advisor entities and their affiliates were paid in cash, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.60% of the contract purchase price. | |||||||||||||||||||||||||||||||||||||
Total | $ | 104,650,000 | $ | 96,630,000 | $ | 2,721,000 | ||||||||||||||||||||||||||||||||
-4 | On April 1, 2014, we added one additional building to our existing Surgical Hospital of Humble Portfolio. The other building was purchased in December 2010. | |||||||||||||||||||||||||||||||||||||
___________ | ||||||||||||||||||||||||||||||||||||||
-1 | We own 100% of our properties acquired in 2014. | |||||||||||||||||||||||||||||||||||||
-2 | Represents borrowings under our unsecured revolving line of credit, as defined in Note 9, Line of Credit, at the time of acquisition. We periodically advance funds and pay down our unsecured revolving line of credit as needed. See Note 9, Line of Credit, for a further discussion. | |||||||||||||||||||||||||||||||||||||
-3 | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. | |||||||||||||||||||||||||||||||||||||
-4 | On January 9, 2014, we added one additional building to our existing Dux MOB Portfolio. The other 14 buildings were purchased in December 2013. | |||||||||||||||||||||||||||||||||||||
-5 | On February 6, 2014, we added one additional building to our existing North Carolina ALF Portfolio. The other five buildings were purchased in December 2012. | |||||||||||||||||||||||||||||||||||||
-6 | On March 6, 2014, we added four additional buildings to our existing Pennsylvania SNF Portfolio. The other two buildings were purchased in April 2013. |
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Detail) (USD $) | 3 Months Ended | 60 Months Ended | 63 Months Ended | 1 Months Ended | 49 Months Ended | 63 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | 13-May-14 | Feb. 14, 2013 | Mar. 31, 2014 | Oct. 30, 2013 | Oct. 30, 2013 | ||
Acquisition | Building | Subsequent Event [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Follow On Public Offering [Member] | Follow On Public Offering [Member] | ||||
Building | Acquisition | Building | Common Stock [Member] | |||||||
segment | sqft | |||||||||
sqft | ||||||||||
Date of inception | ' | ' | ' | 7-Jan-09 | ' | ' | ' | ' | ' | |
Date of capitalization | ' | ' | ' | 4-Feb-09 | ' | ' | ' | ' | ' | |
Subscriptions in offering of common stock received and accepted, shares | ' | ' | ' | ' | ' | 123,179,064 | 280,801,806 | ' | 157,622,743 | |
Subscriptions in offering of common stock received and accepted, value | ' | ' | ' | ' | ' | $1,233,333,000 | ' | ' | $1,604,996,000 | |
Stock issued during period, value, dividend reinvestment plan | 27,411,000 | 10,129,000 | 101,329,000 | 128,740,000 | ' | 40,167,000 | ' | 42,713,000 | ' | |
Issuance of common stock under the DRIP, shares | 2,823,040 | 1,043,214 | 10,504,674 | 13,327,714 | ' | 4,205,920 | ' | 4,398,862 | ' | |
Reportable business segments | 5 | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of acquisitions completed from unaffiliated parties | 4 | ' | ' | 73 | ' | ' | ' | ' | ' | |
Number of buildings acquired from unaffiliated parties | 7 | ' | ' | 286 | 1 | ' | ' | ' | ' | |
Area of acquired property, GLA | 11,111,000 | ' | ' | 11,111,000 | ' | ' | ' | ' | ' | |
Aggregate purchase price of acquisitions | $104,650,000 | [1] | ' | ' | $2,890,361,000 | $13,700,000 | ' | ' | ' | ' |
[1] | We own 100% of our properties acquired in 2014. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 6 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jan. 04, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Jul. 16, 2013 | |
Advisor [Member] | Advisor [Member] | Advisor [Member] | Noncontrolling Interests [Member] | ||||
Investor | |||||||
Property | |||||||
General partnership interest | 99.90% | 99.96% | 99.90% | ' | ' | ' | ' |
Advisor contributed to acquire limited partnership units | ' | ' | ' | $2,000 | ' | ' | ' |
Limited partnership units issued | ' | ' | ' | 200 | ' | ' | ' |
Noncontrolling limited partnership interest in operating partnership | 0.10% | 0.04% | 0.10% | ' | 0.01% | 0.01% | ' |
Number of investors | ' | ' | ' | ' | ' | ' | 12 |
Number of properties exchanged for limited partnership units | ' | ' | ' | ' | ' | ' | 15 |
Number of limited partnership units acquired by non controlling, through exchange | ' | ' | ' | ' | ' | ' | 281,600 |
Allowance for uncollectible accounts | 210,000 | ' | 323,000 | ' | ' | ' | ' |
Direct write-off to accounts receivable | 0 | 91,000 | ' | ' | ' | ' | ' |
Direct write offs of deferred rent receivables | $1,000 | $11,000 | ' | ' | ' | ' | ' |
Percentage of income required to be distributed as dividends | 90.00% | ' | ' | ' | ' | ' | ' |
Real_Estate_Investments_Net_In
Real Estate Investments, Net - Investments in Consolidated Properties (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ' | ' |
Real estate investments, at cost | $2,715,872 | $2,609,934 |
Less: accumulated depreciation | -106,428 | -86,235 |
Real estate investments, net | 2,609,444 | 2,523,699 |
Building and Improvements [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Real estate investments, at cost | 2,280,810 | 2,189,345 |
Land [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Real estate investments, at cost | 428,642 | 414,179 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Real estate investments, at cost | $6,420 | $6,410 |
Real_Estate_Investments_Net_Ad
Real Estate Investments, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 63 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | ||
Building | Building | |||
Acquisition | Acquisition | |||
Real Estate Properties [Line Items] | ' | ' | ' | |
Acquisition fee of contract purchase price | 2.60% | ' | ' | |
Depreciation expense | $20,647,000 | $9,901,000 | ' | |
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | ' | |
Number of acquisitions completed from unaffiliated parties | 4 | ' | 73 | |
Number of buildings acquired from unaffiliated parties | 7 | ' | 286 | |
Aggregate purchase price of acquisitions | 104,650,000 | [1] | ' | 2,890,361,000 |
Acquisition fee | 2,721,000 | [1],[2] | ' | ' |
Medical Office Buildings [Member] | ' | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | ' | |
Capital expenditures Incurred | 2,610,000 | 455,000 | ' | |
Skilled Nursing Facilities [Member] | ' | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | ' | |
Capital expenditures Incurred | 81,000 | 0 | ' | |
Senior Housing [Member] | ' | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | ' | |
Capital expenditures Incurred | 0 | 3,000 | ' | |
Senior Housing-RIDEA [Member] | ' | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | ' | |
Capital expenditures Incurred | $10,000 | $0 | ' | |
[1] | We own 100% of our properties acquired in 2014. | |||
[2] | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. |
Real_Estate_Investments_Net_Su
Real Estate Investments, Net - Summary of Acquisitions (Detail) (USD $) | 3 Months Ended | 63 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2014 | ||
Acquisition | Acquisition | ||
Real Estate Properties [Line Items] | ' | ' | |
Number of acquisitions completed from unaffiliated parties | 4 | 73 | |
Aggregate purchase price of acquisitions | $104,650,000 | [1] | $2,890,361,000 |
Line of credit | 96,630,000 | [1],[2] | ' |
Acquisition fee | 2,721,000 | [1],[3] | ' |
Property ownership percentage | 100.00% | ' | |
Acquisition fee of contract purchase price | 2.60% | ' | |
Percentage of acquisition fee of contract purchase price for properties acquired paid in shares | 0.15% | ' | |
Per share amount of shares of common stock in which payment was made | $9.20 | $9.20 | |
Percentage of contract purchase price paid acquisition fee, in cash | 2.45% | ' | |
Dux MOB Portfolio [Member] | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
Type | 'Medical Office | [1] | ' |
Date of acquisition of property | '1/9/2014 | [1] | ' |
Aggregate purchase price of acquisitions | 25,150,000 | [1],[4] | ' |
Line of credit | 23,500,000 | [1],[2] | ' |
Acquisition fee | 654,000 | [1],[3] | ' |
North Carolina ALF Portfolio [Member] | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
Type | 'Senior Housing | [1] | ' |
Date of acquisition of property | '02/06/14 | [1] | ' |
Aggregate purchase price of acquisitions | 21,000,000 | [1],[5] | ' |
Line of credit | 21,600,000 | [1],[2] | ' |
Acquisition fee | 546,000 | [1],[3] | ' |
Pennsylvania SNF Portfolio [Member] | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
Type | 'Skilled Nursing | [1] | ' |
Date of acquisition of property | '3/6/2014 | [1] | ' |
Aggregate purchase price of acquisitions | 39,000,000 | [1],[6] | ' |
Line of credit | 40,530,000 | [1],[2] | ' |
Acquisition fee | 1,014,000 | [1],[3] | ' |
Eagle Carson City MOB [Member] | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
Type | 'Medical Office | ' | |
Date of acquisition of property | '3/19/2014 | [1] | ' |
Aggregate purchase price of acquisitions | 19,500,000 | [1] | ' |
Line of credit | 11,000,000 | [1],[2] | ' |
Acquisition fee | $507,000 | [1],[3] | ' |
[1] | We own 100% of our properties acquired in 2014. | ||
[2] | Represents borrowings under our unsecured revolving line of credit, as defined in Note 9, Line of Credit, at the time of acquisition. We periodically advance funds and pay down our unsecured revolving line of credit as needed. See Note 9, Line of Credit, for a further discussion. | ||
[3] | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. | ||
[4] | On JanuaryB 9, 2014, we added one additional building to our existing Dux MOB Portfolio. The other 14 buildings were purchased in December 2013. | ||
[5] | On February 6, 2014, we added one additional building to our existing North Carolina ALF Portfolio. The other five buildings were purchased in December 2012. | ||
[6] | On March 6, 2014, we added four additional buildings to our existing Pennsylvania SNF Portfolio. The other two buildings were purchased in April 2013. |
Real_Estate_Investments_Net_Su1
Real Estate Investments, Net - Summary of Acquisitions (Parenthetical) (Detail) (USD $) | 3 Months Ended | 63 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | |
Building | Building | Pennsylvania SNF Portfolio [Member] | Pennsylvania SNF Portfolio [Member] | Dux MOB Portfolio [Member] | Dux MOB Portfolio [Member] | North Carolina ALF Portfolio [Member] | North Carolina ALF Portfolio [Member] | ||
Building | Building | Building | Building | Building | Building | ||||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property ownership percentage | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition fee of contract purchase price | 2.60% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of buildings acquired from unaffiliated parties | 7 | ' | 286 | 4 | 2 | 1 | 14 | 1 | 5 |
Percentage of acquisition fee of contract purchase price for properties acquired paid in shares | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' |
Per share amount of shares of common stock in which payment was made | $9.20 | ' | $9.20 | ' | ' | ' | ' | ' | ' |
Percentage of contract purchase price paid acquisition fee, in cash | 2.45% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' |
Real_Estate_Notes_Receivable_D
Real Estate Notes Receivable (Details) | 3 Months Ended | 63 Months Ended | 3 Months Ended | 63 Months Ended | 3 Months Ended | 63 Months Ended | 3 Months Ended | 63 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | Kissito Roanoke [Member] | Kissito Roanoke [Member] | Kissito Roanoke [Member] | Landmark Naples [Member] | Landmark Naples [Member] | Landmark Naples [Member] | ||||||||||||||
USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||
Real Estate Notes Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Contractual interest rate | ' | ' | ' | ' | 7.50% | [1] | 7.50% | [1] | ' | ' | 7.25% | [1] | ' | ' | 6.00% | [1] | ' | ' | |||||||||
Unamortized closing costs and origination fees, net | $153 | ' | $153 | $293 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Maximum advances available | ' | ' | ' | ' | 111,133 | [2] | 66,691 | 111,133 | [2] | ' | 4,400 | 4,400 | ' | 18,900 | 18,900 | ' | |||||||||||
Total advances outstanding | 24,934 | [3] | ' | 24,934 | [3] | 18,595 | [3] | 18,288 | [2],[3] | 10,974 | 18,288 | [2],[3] | 16,593 | [2],[3] | 2,845 | [3] | 2,845 | [3] | 2,002 | [3] | 3,801 | [3] | 3,801 | [3] | 0 | [3] | |
Related parties transactions acquisition fees expense | ' | ' | 486 | [4] | ' | ' | ' | 353 | [4] | ' | ' | 57 | [4] | ' | ' | 76 | [4] | ' | |||||||||
Real estate notes receivable, net | 25,087 | 8,610 | 25,087 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Real Estate Loans Receivable [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Real estate note receivable, net | 18,888 | 5,182 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Advances on real estate notes receivable | 6,216 | 3,385 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Closing costs and origination fees, net | -64 | 68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Unrealized foreign currency gain (loss) from remeasurement | 123 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Amortization of closing costs and origination fees | -76 | -25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Real estate note receivable, net | $25,087 | $8,610 | $25,087 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
[1] | Represents the per annum interest rate in effect as of MarchB 31, 2014. | ||||||||||||||||||||||||||
[2] | We entered into the UK Development Facility agreement on July 6, 2013, which was effective upon the acquisition of UK Senior Housing Portfolio on September 11, 2013. There are various maturity dates depending upon the timing of advances; however, the maturity date will be no later than March 10, 2022. Based on the currency exchange rate as of MarchB 31, 2014, the maximum amount of advances available was £66,691,000, or approximately $111,133,000, and the outstanding balance as of MarchB 31, 2014 was £10,974,000, or approximately $18,288,000. | ||||||||||||||||||||||||||
[3] | Outstanding balance represents the original principal balance, increased by any subsequent advances and decreased by any subsequent principal paydowns, and only requires monthly interest payments. The UK Development Facility is subject to certain prepayment restrictions if repaid on or before the maturity date. | ||||||||||||||||||||||||||
[4] | Our sub-advisor was paid, as compensation for services in connection with real estate-related investments, an acquisition fee of 2.00% of the total amount advanced through MarchB 31, 2014. |
Real_Estate_Notes_Receivable_A
Real Estate Notes Receivable - Additional Information (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||||
In Thousands, unless otherwise specified | USD ($) | USD ($) | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | ||||
USD ($) | GBP (£) | USD ($) | |||||||
Real Estate Notes Receivable | ' | ' | ' | ' | ' | ||||
Maximum advances available | ' | ' | $111,133 | [1] | £ 66,691 | ' | |||
Acquistion fee percentage | 2.00% | ' | ' | ' | ' | ||||
Total advances outstanding | $24,934 | [2] | $18,595 | [2] | $18,288 | [1],[2] | £ 10,974 | $16,593 | [1],[2] |
[1] | We entered into the UK Development Facility agreement on July 6, 2013, which was effective upon the acquisition of UK Senior Housing Portfolio on September 11, 2013. There are various maturity dates depending upon the timing of advances; however, the maturity date will be no later than March 10, 2022. Based on the currency exchange rate as of MarchB 31, 2014, the maximum amount of advances available was £66,691,000, or approximately $111,133,000, and the outstanding balance as of MarchB 31, 2014 was £10,974,000, or approximately $18,288,000. | ||||||||
[2] | Outstanding balance represents the original principal balance, increased by any subsequent advances and decreased by any subsequent principal paydowns, and only requires monthly interest payments. The UK Development Facility is subject to certain prepayment restrictions if repaid on or before the maturity date. |
Identified_Intangible_Assets_N2
Identified Intangible Assets, Net - Summary of Identified Intangibles, Net (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | $279,061 | $285,667 |
Tenant Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | 132,476 | 131,816 |
In-Place Leases [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | 116,592 | 123,780 |
Leasehold Interests [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | 16,006 | 16,077 |
Above Market Leases [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | 13,396 | 13,400 |
Defeasible Interest [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | $591 | $594 |
Identified_Intangible_Assets_N3
Identified Intangible Assets, Net - Summary of Identified Intangibles, Net (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average remaining life | '15 years 9 months 18 days | ' | '15 years 8 months 12 days |
Amortization expense | $13,635 | $5,500 | ' |
Tenant Relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net of accumulated amortization | 14,480 | ' | 11,128 |
Weighted average remaining life | '17 years 7 months 6 days | ' | '17 years 9 months 18 days |
In-Place Leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net of accumulated amortization | 31,048 | ' | 23,364 |
Weighted average remaining life | '8 years 1 month 6 days | ' | '8 years 1 month 6 days |
Leasehold Interests [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net of accumulated amortization | 729 | ' | 658 |
Weighted average remaining life | '63 years 7 months 6 days | ' | '63 years 9 months 18 days |
Above Market Leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net of accumulated amortization | 3,931 | ' | 3,466 |
Weighted average remaining life | '6 years 4 months 24 days | ' | '6 years 7 months 6 days |
Defeasible Interest [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net of accumulated amortization | 32 | ' | 29 |
Weighted average remaining life | '39 years 6 months 0 days | ' | '39 years 9 months 18 days |
Leasehold Interests [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | 71 | 70 | ' |
Above Market Leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | $743 | $558 | ' |
Identified_Intangible_Assets_N4
Identified Intangible Assets, Net - Summary of Amortization Expense on Identified Intangible Assets, Net (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
2014 | $38,874,000 | ' |
2015 | 25,794,000 | ' |
2016 | 23,583,000 | ' |
2017 | 21,517,000 | ' |
2018 | 19,721,000 | ' |
Thereafter | 149,572,000 | ' |
Identified intangible assets, net | $279,061,000 | $285,667,000 |
Other_Assets_Net_Other_Assets_
Other Assets, Net - Other Assets, Net (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Other Assets [Abstract] | ' | ' |
Deferred rent receivables | $30,491,000 | $24,494,000 |
Deferred financing costs, net of accumulated amortization of $4,379,000 and $3,627,000 as of March 31, 2014 and December 31, 2013, respectively | 5,534,000 | 6,282,000 |
Prepaid expenses and deposits | 3,196,000 | 2,485,000 |
Lease commissions, net of accumulated amortization of $517,000 and $393,000 as of March 31, 2014 and December 31, 2013, respectively | 5,414,000 | 4,677,000 |
Other assets, net | 44,635,000 | 37,938,000 |
Accumulated amortization, deferred financing cost | 4,379,000 | 3,627,000 |
Accumulated amortization on lease commissions | $517,000 | $393,000 |
Other_Assets_Net_Additional_In
Other Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Amortization expense on deferred financing costs | $752 | $459 |
Amortization expense on lease commissions | $133 | $45 |
Other_Assets_Net_Estimated_Amo
Other Assets, Net - Estimated Amortization Expense on Deferred Financing Costs and Lease Commissions (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Other Assets [Abstract] | ' | ' |
Accumulated amortization, deferred financing cost | $4,379,000 | $3,627,000 |
2014 | 2,685,000 | ' |
2015 | 2,124,000 | ' |
2016 | 979,000 | ' |
2017 | 807,000 | ' |
2018 | 714,000 | ' |
Thereafter | 3,639,000 | ' |
Total | $10,948,000 | ' |
Mortgage_Loans_Payable_Net_Add
Mortgage Loans Payable, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
MortgageLoan | MortgageLoan | |||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' |
Mortgage loans payable, net | $327,435,000 | $329,476,000 | $296,620,000 | $291,052,000 |
Mortgage loans payable, gross | 314,276,000 | 315,722,000 | ' | ' |
Number of fixed rate mortgage loans payable | 42 | 42 | ' | ' |
Variable rate mortgage loans payable | 3 | 3 | ' | ' |
Mortgage loans payable with effective interest rates minimum | 1.26% | 1.27% | ' | ' |
Mortgage loans payable with effective interest rates maximum | 6.60% | 6.60% | ' | ' |
Weighted average effective interest rate | 4.87% | 4.87% | ' | ' |
Percentage of fixed rate mortgage loan payables | 94.90% | 94.90% | ' | ' |
Weighted average effective fixed rate | 5.00% | 5.00% | ' | ' |
Percentage of variable rate mortgage loan payables | 5.10% | 5.10% | ' | ' |
Weighted average effective variable Rate | 2.56% | 2.57% | ' | ' |
Fixed Rate Debt [Member] | ' | ' | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' |
Mortgage loans payable, net | 311,749,000 | 313,646,000 | ' | ' |
Mortgage loans payable, gross | 298,385,000 | 299,680,000 | ' | ' |
Variable Rate Debt [Member] | ' | ' | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' |
Mortgage loans payable, net | 15,686,000 | 15,830,000 | ' | ' |
Mortgage loans payable, gross | $15,891,000 | $16,042,000 | ' | ' |
Mortgage_Loans_Payable_Net_Mor
Mortgage Loans Payable, Net - Mortgage Loans Payable (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Mortgage loans payable, gross | $314,276,000 | ' | $315,722,000 |
Less: discount | -208,000 | ' | -216,000 |
Add: premium | 13,367,000 | ' | 13,970,000 |
Mortgage loans payable, net | 327,435,000 | 296,620,000 | ' |
Mortgage Loan Activities [Roll Forward] | ' | ' | ' |
Mortgage loans payable, net | 329,476,000 | 291,052,000 | ' |
Assumption of mortgage loans payable, net | 0 | 7,088,000 | ' |
Scheduled principal payments on mortgage loans payable | -1,446,000 | -1,136,000 | ' |
Amortization of premium/discount on mortgage loans payable | -595,000 | -384,000 | ' |
Mortgage loans payable, net | 327,435,000 | 296,620,000 | ' |
Fixed Rate Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Mortgage loans payable, gross | 298,385,000 | ' | 299,680,000 |
Mortgage loans payable, net | 311,749,000 | ' | 313,646,000 |
Mortgage Loan Activities [Roll Forward] | ' | ' | ' |
Mortgage loans payable, net | ' | ' | 313,646,000 |
Mortgage loans payable, net | 311,749,000 | ' | 313,646,000 |
Variable Rate Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Mortgage loans payable, gross | 15,891,000 | ' | 16,042,000 |
Mortgage loans payable, net | 15,686,000 | ' | 15,830,000 |
Mortgage Loan Activities [Roll Forward] | ' | ' | ' |
Mortgage loans payable, net | ' | ' | 15,830,000 |
Mortgage loans payable, net | $15,686,000 | ' | $15,830,000 |
Mortgage_Loans_Payable_Net_Pri
Mortgage Loans Payable, Net - Principal Payments Due on Mortgage Loans Payable (Detail) (USD $) | Mar. 31, 2014 |
Mortgage Loans on Real Estate [Abstract] | ' |
2014 | $13,930,000 |
2015 | 41,968,000 |
2016 | 50,318,000 |
2017 | 24,779,000 |
2018 | 40,064,000 |
Thereafter | 143,217,000 |
Long-term Debt, Total | $314,276,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Details) | 3 Months Ended | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Sep. 10, 2014 | Dec. 31, 2013 | Sep. 09, 2013 |
USD ($) | USD ($) | USD ($) | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | |
USD ($) | USD ($) | USD ($) | Rate | USD ($) | GBP (£) | ||||
Derivative, notional amount | $15,891 | ' | $22,826 | ' | ' | ' | ' | ' | £ 180,000 |
Derivative assets (liabilities), at fair value, net | -401 | ' | -451 | ' | ' | -18,688 | ' | -16,489 | ' |
Derivative, forward exchange rate | ' | ' | ' | ' | ' | ' | 1.5606 | ' | ' |
Gain (loss) in fair value of derivative financial instruments | ($2,149) | $89 | ' | $50 | $89 | ($2,199) | ' | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | $15,891 | $22,826 |
Derivative assets (liabilities), at fair value, net | -401 | -451 |
Swap One [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | 2,418 | 2,483 |
Index | 'oneB monthB LIBOR | 'oneB monthB LIBOR |
Interest rate | 6.00% | 6.00% |
Derivative assets (liabilities), at fair value, net | -298 | -309 |
Instrument | 'Swap | 'Swap |
Maturity date | 15-Aug-21 | 15-Aug-21 |
Swap Two [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | 6,718 | 6,798 |
Index | 'one month LIBOR | 'one month LIBOR |
Interest rate | 4.28% | 4.41% |
Derivative assets (liabilities), at fair value, net | -10 | 0 |
Instrument | 'Swap | 'Swap |
Maturity date | 1-May-14 | 1-Jan-14 |
Swap Three [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | 6,755 | 6,761 |
Index | 'one month LIBOR | 'one month LIBOR |
Interest rate | 4.11% | 4.28% |
Derivative assets (liabilities), at fair value, net | -93 | -39 |
Instrument | 'Swap | 'Swap |
Maturity date | 1-Oct-15 | 1-May-14 |
Swap Four [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | ' | 6,784 |
Index | ' | 'one month LIBOR |
Interest rate | ' | 4.11% |
Derivative assets (liabilities), at fair value, net | ' | ($103) |
Instrument | ' | 'Swap |
Maturity date | ' | 1-Oct-15 |
Line_of_Credit_Detail
Line of Credit (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | 24-May-13 | Jun. 05, 2012 | |
Extension | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Weighted average interest rate of borrowings | 4.87% | 4.87% | ' | ' |
Unsecured Revolving Line Of Credit [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Increase in aggregate maximum principal amount | ' | ' | ' | $200,000,000 |
Aggregate borrowing capacity | 450,000,000 | 450,000,000 | ' | ' |
Borrowings outstanding | 158,100,000 | 68,000,000 | ' | ' |
Borrowings remained available | 291,900,000 | 382,000,000 | ' | ' |
Percentage of standby letters of credit | ' | ' | ' | 10.00% |
Percentage of swingline loans | ' | ' | 15.00% | 15.00% |
Line of credit facility,swing line maximum borrownig capacity | ' | ' | 50,000,000 | ' |
Line of credit facility, maximum borrownig capacity -amended | ' | ' | 450,000,000 | ' |
Increased maximum principal amount of the Credit Agreement | ' | ' | 200,000,000 | ' |
Total principal amount | ' | ' | $650,000,000 | ' |
Percentage of margin in addition to eurodollar rate condition one | 1.00% | ' | ' | ' |
Credit agreement percentage of margin in addition to federal funds rate | 0.50% | ' | ' | ' |
Number of extensions | ' | ' | 1 | ' |
Commitment fee percentage condition one | 0.25% | ' | ' | ' |
Average daily used amount condition one | 50.00% | ' | ' | ' |
Commitment fee percentage condition two | 0.35% | ' | ' | ' |
Average daily used amount condition two | 50.00% | ' | ' | ' |
Weighted average interest rate of borrowings | 2.20% | 2.32% | ' | ' |
Unsecured Revolving Line Of Credit [Member] | Minimum [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Percentage of margin in addition to eurodollar rate condition one | 2.00% | ' | ' | ' |
Percentage of margin in addition to eurodollar rate condition two | 1.00% | ' | ' | ' |
Unsecured Revolving Line Of Credit [Member] | Maximum [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Percentage of margin in addition to eurodollar rate condition one | 3.00% | ' | ' | ' |
Percentage of margin in addition to eurodollar rate condition two | 2.00% | ' | ' | ' |
Identified_Intangible_Liabilit2
Identified Intangible Liabilities, Net - Summary of Identified Intangibles, Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Finite Lived Intangible Liabilities [Line Items] | ' | ' | ' |
Identified intangible liabilities, net | $11,356 | ' | $11,693 |
Weighted average remaining life | '33 years 9 months 18 days | ' | '33 years 4 months 24 days |
Below Market Lease [Member] | ' | ' | ' |
Finite Lived Intangible Liabilities [Line Items] | ' | ' | ' |
Identified intangible liabilities, net | 6,573 | ' | 6,884 |
Amortization expense on below market leases | 375 | 147 | ' |
Finite lived intangible liabilities accumulated amortization | 1,077 | ' | 887 |
Weighted average remaining life | '7 years 7 months 6 days | ' | '7 years 9 months 18 days |
Above Market Leasehold Interests [Member] | ' | ' | ' |
Finite Lived Intangible Liabilities [Line Items] | ' | ' | ' |
Identified intangible liabilities, net | 4,783 | ' | 4,809 |
Amortization of above market leasehold interests | 27 | 12 | ' |
Finite lived intangible liabilities accumulated amortization | $110 | ' | $83 |
Weighted average remaining life | '69 years 10 months 24 days | ' | '70 years |
Identified_Intangible_Liabilit3
Identified Intangible Liabilities, Net - Summary of Amortization Expense on Below Market Leases and Above Market Leasehold Interests (Detail) (USD $) | Mar. 31, 2014 |
Intangible Liabilities [Abstract] | ' |
2014 | $947,000 |
2015 | 1,191,000 |
2016 | 1,121,000 |
2017 | 965,000 |
2018 | 856,000 |
Thereafter | 6,276,000 |
Total | $11,356,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Related Party Transaction [Line Items] | ' | ' | |
Dealer manager fee as percentage of gross offering proceeds | ' | 3.00% | |
Acquisition price for any real estate-related investment we originate or acquire | 2.00% | ' | |
Percentage of acquisition fee of contract purchase price for properties acquired paid in shares | 0.15% | ' | |
Per share amount of shares of common stock in which payment was made | $9.20 | ' | |
Percentage of contract purchase price paid acquisition fee, in cash | 2.45% | ' | |
Acquisition fee | $2,721,000 | [1],[2] | ' |
Maximum percentage of fees and expenses associated with the acquisition | 6.00% | 6.00% | |
Percentage of operating expenses of average invested assets | 1.00% | ' | |
Percentage of operating expenses of net income | 20.60% | ' | |
Current Advisor [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Fees and expenses paid to affiliates | 10,973,000 | 7,145,000 | |
Acquisition fee of contract purchase price | 2.60% | ' | |
Acquisition price for any real estate-related investment we originate or acquire | 2.00% | ' | |
Percentage of acquisition fee of contract purchase price for properties acquired paid in shares | 0.15% | ' | |
Percentage of contract purchase price paid acquisition fee, in cash | 2.45% | ' | |
Acquisition fee | 2,846,000 | 2,485,000 | |
Shares issued for acquisition fees | 17,066 | 15,157 | |
Monthly fee for asset management for existing assets | 0.85% | ' | |
Monthly fee for asset management for newly acquired assets | 0.75% | ' | |
Subordinated asset management fee subject to stockholders receiving distributions, percentage | 5.00% | ' | |
Related parties transactions asset management fee | 5,590,000 | 2,718,000 | |
Percentage of monthly property management fee | 4.00% | ' | |
Percentage of monthly oversight fee | 1.00% | ' | |
Related parties transactions property management fee and oversight fee | 1,610,000 | 825,000 | |
Minimum percentage of lease fee | 3.00% | ' | |
Maximum percentage of lease fee | 8.00% | ' | |
Lease fees to advisor or its affiliates | 860,000 | 305,000 | |
Maximum percentage of construction management fee | 5.00% | ' | |
Related parties transactions construction management fee expenses | 67,000 | 39,000 | |
Percentage of operating expenses of average invested assets | 2.00% | ' | |
Percentage of operating expenses of net income | 25.00% | ' | |
Disposition Fees as percentage of contract sales price | 2.00% | ' | |
Disposition Fees as percentage of customary competitive real estate commission | 50.00% | ' | |
Maximum percentage of disposition fee | 6.00% | ' | |
Subordinated Distribution of Net Sales Proceeds [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Percentage of distribution of net proceeds from sales of properties | 15.00% | ' | |
Annual cumulative non compounded return on gross proceeds from sale of shares | 8.00% | ' | |
Subordinated Distribution Upon Listing [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Percentage of distribution of net proceeds from sales of properties | 15.00% | ' | |
Annual cumulative non compounded return upon listing of shares | 8.00% | ' | |
Subordinated Distribution Upon Termination [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Annual cumulative non compounded return on gross proceeds from sale of shares | 8.00% | ' | |
Distribution rate of partnership amount to sub advisor | 15.00% | ' | |
Chairman of the Board of Directors and Chief Executive Officer [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Investment rate by officer | ' | 100.00% | |
President and Chief Operating Officer [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Investment rate by officer | ' | 50.00% | |
Executive Vice President, General Counsel [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Investment rate by officer | ' | 50.00% | |
Chief Financial Officer [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Investment rate by officer | ' | 15.00% | |
Senior Vice President [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Investment rate by officer | ' | 15.00% | |
Secretary [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Investment rate by officer | ' | 10.00% | |
Follow On Public Offering [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Other organizational and offering expense percentage | ' | 1.00% | |
Initial Public Offering [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Other organizational and offering expense percentage | ' | 1.00% | |
Initial Public Offering [Member] | Current Advisor [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Offering expenses | ' | 115,000 | |
Follow On Public Offering [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Dealer manager fee as percentage of gross offering proceeds | ' | 3.00% | |
Follow On Public Offering [Member] | Current Advisor [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Offering expenses | ' | 658,000 | |
[1] | We own 100% of our properties acquired in 2014. | ||
[2] | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. |
Related_Party_Transactions_Rel
Related Party Transactions - Related Party Description (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2013 |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | $198,468 |
Chairman of the Board of Directors and Chief Executive Officer [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | 20 |
Shares purchased, shares | 2,169 |
President and Chief Operating Officer [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | 14 |
Shares purchased, shares | 1,565 |
Executive Vice President, General Counsel [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | 13 |
Shares purchased, shares | 1,391 |
Chief Financial Officer [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | 5 |
Shares purchased, shares | 548 |
Senior Vice President of Acquisitions [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | 3 |
Shares purchased, shares | 341 |
Secretary [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | 3 |
Shares purchased, shares | 309 |
Executive Officer [Member] | ' |
Related Party Transaction [Line Items] | ' |
Value of stock purchased | $58 |
Shares purchased, shares | 6,323 |
Related_Party_Transactions_Sch
Related Party Transactions - Schedule of Amount Outstanding to Affiliates (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Due to affiliate | $3,030 | $2,407 |
Asset and property management fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to affiliate | 2,568 | 2,201 |
Lease commissions [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to affiliate | 353 | 83 |
Offering costs [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to affiliate | 0 | 28 |
Construction management fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to affiliate | 106 | 94 |
Operating expenses [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to affiliate | $3 | $1 |
Equity_Accumulated_Other_Compr
Equity Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Total accumulated other comprehensive income (loss), net of tax and noncontrolling interest | $3,295,000 | ' |
Accumulated other comprehensive income | 26,071,000 | 22,776,000 |
Currency Gain (loss) Long Term Nature - Net of Tax [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Total accumulated other comprehensive income (loss), net of tax and noncontrolling interest | 3,191,000 | ' |
Accumulated other comprehensive income | 25,228,000 | 22,037,000 |
Foreign Currency Translation Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Total accumulated other comprehensive income (loss), net of tax and noncontrolling interest | 104,000 | ' |
Accumulated other comprehensive income | $843,000 | $739,000 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 60 Months Ended | 63 Months Ended | 49 Months Ended | 63 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 63 Months Ended | 1 Months Ended | 6 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 30, 2013 | Dec. 31, 2012 | Dec. 07, 2012 | Jan. 07, 2012 | Feb. 14, 2013 | Mar. 31, 2014 | Nov. 07, 2012 | Nov. 06, 2012 | Oct. 30, 2013 | Feb. 14, 2013 | Feb. 04, 2009 | Jan. 04, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 20, 2014 | Nov. 07, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Oct. 21, 2009 | 13-May-14 | Jul. 16, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Nov. 06, 2012 | Oct. 30, 2013 | Feb. 14, 2013 | Mar. 31, 2013 | Feb. 14, 2013 | Nov. 07, 2012 | Nov. 06, 2012 | Oct. 30, 2013 | Feb. 14, 2013 | Sep. 09, 2013 | Mar. 31, 2013 | |
Initial Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Follow On Public Offering [Member] | Follow On Public Offering [Member] | Former Advisor [Member] | Advisor [Member] | Advisor [Member] | Advisor [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | Subsequent Event [Member] | Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member] | Condition One [Member] | Condition Two [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Follow On Public Offering [Member] | Follow On Public Offering [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Initial Public Offering [Member] | |||||||||
Independent Directors [Member] | Independent Directors [Member] | Common Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Property | 2009 Incentive Plan [Member] | 2009 Incentive Plan [Member] | Initial Public Offering [Member] | Follow On Public Offering [Member] | Follow On Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Follow On Public Offering [Member] | Follow On Public Offering [Member] | DRIP S-3 Public Offering [Member] | |||||||||||||||||||||||||
Independent Directors [Member] | Independent Directors [Member] | Investor | Restricted Stock [Member] | Restricted Stock [Member] | |||||||||||||||||||||||||||||||||||||||
Independent Directors [Member] | Independent Directors [Member] | ||||||||||||||||||||||||||||||||||||||||||
Aggregate maximum offering amount - reallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,607,200,000 | ' | ' | ' | ' | ' | $42,800,000 | ' | ' | ' |
Number of shares of preferred stock, authorized to be issued | 200,000,000 | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value of preferred stock, authorized to be issued | $0.01 | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum dollar amount of common stock issuable under public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,650,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | ' | 1,500,000,000 | ' | ' | ' | 285,000,000 | ' | 150,000,000 | 100,000,000 | ' |
Par value of common stock to be offered and sold to the public | $0.01 | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | $10.22 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.22 | ' | ' | $9.71 | $9.50 | ' | $9.71 | ' | ' |
Amount of common stock reallocated from DRIP to primary offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of offering price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' |
Number of shares of common stock, authorized to be issued | 1,000,000,000 | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,222 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of vested and nonvested restricted common stock, shares | ' | ' | ' | 149,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,540 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 280,031 | ' | 223,413 | 279,992 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | 81,540 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,540 | 7,500 | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscriptions in offering of common stock received and accepted, shares | ' | ' | ' | ' | ' | ' | ' | ' | 123,179,064 | 280,801,806 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 157,622,743 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock under the DRIP, shares | 2,823,040 | 1,043,214 | 10,504,674 | 13,327,714 | ' | ' | ' | ' | 4,205,920 | ' | ' | ' | 4,398,862 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,043,214 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for acquisition fees subsequent to our offerings | ' | ' | ' | 105,337 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased under the share repurchase plan, shares | 223,413 | 279,992 | 1,481,233 | 1,704,646 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares, issued | 292,701,473 | ' | 290,003,240 | 292,701,473 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 292,701,473 | ' | 290,003,240 | 292,701,473 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of gross offering receives as a selling commission by dealer manager | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' |
Selling commissions expenses | ' | 9,102,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,437,000 | ' | ' | ' | ' | ' | ' | ' |
Dealer manager fee percentage | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' |
Dealer manager fee expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,962,000 | ' | ' | ' | ' | ' | ' | 3,981,000 |
Advisor contributed to acquire limited partnership units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited partnership units issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | 200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in operating partnership by parent | 99.90% | 99.96% | 99.90% | 99.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling ownership interest in operating partnership | 0.10% | 0.04% | 0.10% | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.01% | 0.01% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of interest in ownership of consolidated limited liability | ' | ' | 98.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of earnings of Pocatello East MOB property allocated to non controlling interest | ' | ' | 1.25% | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, value, dividend reinvestment plan | 27,411,000 | 10,129,000 | 101,329,000 | 128,740,000 | ' | ' | ' | ' | 40,167,000 | ' | ' | ' | 42,713,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of common stock repurchased during the period | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase plan holding period condition one | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase plan percentage of price per share condition one | ' | ' | ' | ' | ' | ' | 92.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase plan percentage of price per share condition two | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased under the share repurchase plan, value | 2,130,000 | 2,700,000 | 14,299,000 | 16,429,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average cost of common stock repurchased | $9.54 | $9.64 | $9.65 | $9.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation arrangement by share based payment award equity instruments other than options vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation arrangement by share based payment award equity instruments other than options vesting percentage on anniversary of grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of stocks at grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $10.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 226,000 | 26,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 888,000 | ' | 280,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated share based unrecognized compensation expense net of estimated forfeitures weighted average remaining period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 5 months 26 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the nonvested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $972,000 | ' | $306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties exchanged for limited partnership units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of limited partnership units acquired by non controlling, through exchange | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 281,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Status_and_Changes_of_N
Equity - Status and Changes of Nonvested Shares of Restricted Common Stock (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Beginning balance (in shares) | 30,000 |
Granted (in shares) | 81,540 |
Vested (in shares) | -16,308 |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 95,232 |
Beginning balance (in dollars per share) | $10.19 |
Granted (in dollars per share) | $10.22 |
Vested (in dollars per share) | $10.22 |
Forfeited (in dollars per share) | $0 |
Ending balance (in dollars per share) | $10.21 |
Expecting to vest (in dollars per share) | $10.21 |
Expected to vest (in shares) | 95,232 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Liabilities: | ' | ' |
Derivative financial instruments | $19,089,000 | $16,940,000 |
Business combination, contingent consideration, liability | 4,386,000 | 4,675,000 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Business combination, contingent consideration, liability | 4,386,000 | 4,675,000 |
Total liabilities at fair value | 23,475,000 | 21,615,000 |
Fair Value, Inputs, (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | ' | 0 |
Business combination, contingent consideration, liability | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Business combination, contingent consideration, liability | 0 | 0 |
Total liabilities at fair value | 19,089,000 | 16,940,000 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | 0 |
Business combination, contingent consideration, liability | 4,386,000 | 4,675,000 |
Total liabilities at fair value | 4,386,000 | 4,675,000 |
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 18,688,000 | 16,489,000 |
Foreign Exchange Forward [Member] | Fair Value, Inputs, (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | ' |
Foreign Exchange Forward [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 18,688,000 | 16,489,000 |
Foreign Exchange Forward [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | ' |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 401,000 | 451,000 |
Interest Rate Swap [Member] | Fair Value, Inputs, (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | ' |
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Liabilities: | ' | ' |
Derivative financial instruments | $401,000 | $451,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Philadelphia SNF Portfolio [Member] | Pacific Northwest Senior Care Portfolio [Member] | Pacific Northwest Senior Care Portfolio [Member] | Pacific Northwest Senior Care Portfolio [Member] | Various Property Acquistions [Member] | Various Property Acquistions [Member] | Significant Unobservable Inputs (Level 3) [Member] | Unsecured Revolving Line Of Credit [Member] | Unsecured Revolving Line Of Credit [Member] | |||||
Contingent Consideration Obligation [Member] | Contingent Consideration Obligation [Member] | Minimum [Member] | Maximum [Member] | Contingent Consideration Obligation [Member] | Contingent Consideration Obligation [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination, contingent consideration, liability | $4,386,000 | $4,675,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of eligible payment requested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Fair value of the mortgage loans payable | 327,863,000 | 324,930,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans payable, net | 327,435,000 | 329,476,000 | 296,620,000 | 291,052,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the lines of credit | 158,575,000 | 68,243,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of the lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 158,100,000 | 68,000,000 |
Accrued amount of contingent consideration obligation in purchase of properties | ' | ' | ' | ' | 3,208,000 | 3,026,000 | ' | ' | 1,360,000 | 1,467,000 | ' | ' | ' |
Improvements and renovation | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' | ' | ' | ' |
Payment required | ' | ' | ' | ' | ' | ' | 0 | 6,525,000 | ' | ' | ' | ' | ' |
Contingent payment on meeting the criteria | ' | ' | ' | ' | ' | 3,499,000 | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration obligation payment period | ' | ' | ' | ' | ' | 'within three years from the acquisition date | ' | ' | ' | ' | ' | ' | ' |
Additional improvements | ' | ' | ' | ' | ' | ' | ' | $1,825,000 | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Unobse
Fair Value Measurements - Unobservable Inputs (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative financial instruments | $19,089,000 | $16,940,000 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Percentage of eligible payment requested | 100.00% | ' |
Pacific Northwest Senior Care Portfolio [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value if required lease coverage ratio not met | 1,201,000 | 1,383,000 |
Fair Value at year end | 3,026,000 | 3,208,000 |
Estimated cost of tenant improvements | 6,525,000 | ' |
Percentage of eligible payment requested | 100.00% | ' |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative financial instruments | 401,000 | 451,000 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative financial instruments | $401,000 | $451,000 |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Contingent Consideration Asset and Obligations (Detail) (Contingent Consideration Obligation [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Contingent Consideration Obligation [Member] | ' | ' |
Contingent Consideration Obligations: | ' | ' |
Beginning balance | $4,675 | $60,204 |
Additions to contingent consideration obligations | 100 | 0 |
Realized/unrealized (gains) losses recognized in earnings | -38 | 458 |
Settlements of obligations | -351 | -1,047 |
Ending balance | 4,386 | 59,615 |
Amount of total (gains) losses included in earnings attributable to the change in unrealized (gains) losses relating to obligations still held | ($38) | $458 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Examination [Line Items] | ' | ' |
Income (loss) from continuing operations before income taxes, domestic | $10,323,000 | ' |
Income (loss) from continuing operations before income taxes, foreign | -869,000 | ' |
Income before income taxes | 9,454,000 | 5,500,000 |
Deferred federal income tax expense (benefit) | -2,745,000 | ' |
Deferred state and local income tax expense (benefit) | -271,000 | ' |
Current foreign tax expense (benefit) | 161,000 | ' |
Deferred foreign income tax expense (benefit) | -745,000 | ' |
Valuation allowance, deferred tax asset, change in amount | 2,968,000 | ' |
Income tax benefit | ($632,000) | $0 |
Income_Taxes_Deferred_Taxes_De
Income Taxes - Deferred Taxes (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Income Tax Examination [Line Items] | ' | ' |
Deferred tax assets - net operating loss | $2,968,000 | ' |
Deferred tax assets - valuation allowance | -2,968,000 | ' |
Deferred tax assets, net | 0 | ' |
Deferred tax liabilities - foreign | 47,165,000 | 47,635,000 |
Deferred tax liabilities, other | 2,727,000 | 2,730,000 |
Deferred tax liabilities, net | $49,892,000 | $50,365,000 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 3 Months Ended | 63 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | |
Aggregate purchase price of acquisitions | $104,650,000 | [1] | ' | $2,890,361,000 | ' |
Total closing costs and acquisition fees | 1,642,000 | 3,605,000 | ' | ' | |
Share price | ' | ' | ' | $10 | |
Two Thousand Fourteen Acquisitions [Member] | ' | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | ' | |
Number of acquisitions acquired in business combinations | 2 | ' | ' | ' | |
Number of buildings acquired in business combinations | 2 | ' | ' | ' | |
Aggregate purchase price of acquisitions | 44,650,000 | ' | ' | ' | |
Total closing costs and acquisition fees | 1,281,000 | ' | ' | ' | |
Two Thousand Thirteen Acquisitions [Member] | ' | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | ' | |
Number of acquisitions acquired in business combinations | ' | 6 | ' | ' | |
Number of buildings acquired in business combinations | ' | 10 | ' | ' | |
Aggregate purchase price of acquisitions | ' | 92,940,000 | ' | ' | |
Total closing costs and acquisition fees | ' | $3,041,000 | ' | ' | |
[1] | We own 100% of our properties acquired in 2014. |
Business_Combinations_Schedule
Business Combinations - Schedule of Revenues and Net Income (Loss) of Properties Acquired (Detail) (Other Two Thousand Thirteen Acquisitions [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2013 |
Other Two Thousand Thirteen Acquisitions [Member] | ' |
Business Acquisition [Line Items] | ' |
Revenues | $601 |
Net income (loss) | $291 |
Business_Combinations_Fair_Val
Business Combinations - Fair Value of Acquisitions (Detail) (Other Two Thousand Thirteen Acquisitions [Member], USD $) | Mar. 31, 2013 |
Business Acquisition [Line Items] | ' |
Business combination, recognized Identifiable assets acquired and liabilities assumed, land | $8,327,000 |
Business combination, recognized identifiable assets acquired and liabilities assumed, assets | 94,418,000 |
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities, mortgage loans payable, net | -7,088,000 |
Liabilities assumed | -8,322,000 |
Net assets acquired | 86,096,000 |
Building and Improvements [Member] | ' |
Business Acquisition [Line Items] | ' |
Business combination, recognized identifiable assets acquired and liabilities assumed, property, plant, and equipment | 69,067,000 |
In-Place Leases [Member] | ' |
Business Acquisition [Line Items] | ' |
Business combination, recognized identifiable assets acquired and liabilities assumed, intangible assets, other than goodwill | 5,990,000 |
Tenant Relationships [Member] | ' |
Business Acquisition [Line Items] | ' |
Business combination, recognized identifiable assets acquired and liabilities assumed, intangible assets, other than goodwill | 9,371,000 |
Above Market Leases [Member] | ' |
Business Acquisition [Line Items] | ' |
Business combination, recognized identifiable assets acquired and liabilities assumed, intangible assets, other than goodwill | 1,663,000 |
Below Market Lease [Member] | ' |
Business Acquisition [Line Items] | ' |
Business combination, recognized liabilities assumed | $1,234,000 |
Business_Combinations_Fair_Val1
Business Combinations - Fair Value of Acquisitions (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Business combination, contingent consideration, liability | $4,386,000 | $4,675,000 |
Business_Combinations_Business
Business Combinations - Business Acquisition Pro Forma Information (Detail) (Two Thousand Thirteen Acquisitions [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2012 |
Two Thousand Thirteen Acquisitions [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Revenues | $42,459 | $21,603 |
Net (loss) income | 8,992 | -2,772 |
Net (loss) income attributable to controlling interest | $8,988 | ($2,772) |
Net (loss) income per common share attributable to controlling interest - basic and diluted | $0.07 | ($0.05) |
Segment_Reporting_Summary_Info
Segment Reporting - Summary Information for Reportable Segments (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Reportable business segments | 5 | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate revenue, net | $91,456,000 | $40,218,000 | ' |
Real estate investments, net | 2,609,444,000 | ' | 2,523,699,000 |
Revenues: | ' | ' | ' |
Real estate revenue | 72,268,000 | 40,218,000 | ' |
Resident fees and services | 19,188,000 | 0 | ' |
Total revenues | 91,456,000 | 40,218,000 | ' |
Expenses: | ' | ' | ' |
Rental expenses | 31,311,000 | 8,240,000 | ' |
Segment net operating income | 60,145,000 | 31,978,000 | ' |
Expenses: | ' | ' | ' |
General and administrative | 8,186,000 | 4,070,000 | ' |
Acquisition related expenses | 1,642,000 | 3,605,000 | ' |
Depreciation and amortization | 33,601,000 | 14,818,000 | ' |
Income from operations | 16,716,000 | 9,485,000 | ' |
Other income (expense): | ' | ' | ' |
Interest expense | -5,093,000 | -4,077,000 | ' |
Gain in fair value of derivative financial instruments | 50,000 | 89,000 | ' |
Foreign currency and derivative loss | -2,222,000 | 0 | ' |
Interest income | 3,000 | 3,000 | ' |
Income before income taxes | 9,454,000 | 5,500,000 | ' |
Total assets | 3,009,785,000 | ' | 2,928,726,000 |
Medical Office Buildings [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Real estate revenue | 39,266,000 | 21,454,000 | ' |
Resident fees and services | 0 | ' | ' |
Total revenues | 39,266,000 | ' | ' |
Expenses: | ' | ' | ' |
Rental expenses | 12,588,000 | 6,633,000 | ' |
Segment net operating income | 26,678,000 | 14,821,000 | ' |
Other income (expense): | ' | ' | ' |
Total assets | 1,331,072,000 | ' | 1,296,336,000 |
Skilled Nursing Facilities [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Real estate revenue | 13,205,000 | 10,750,000 | ' |
Resident fees and services | 0 | ' | ' |
Total revenues | 13,205,000 | ' | ' |
Expenses: | ' | ' | ' |
Rental expenses | 3,134,000 | 796,000 | ' |
Segment net operating income | 10,071,000 | 9,954,000 | ' |
Other income (expense): | ' | ' | ' |
Total assets | 446,262,000 | ' | 405,774,000 |
Hospitals [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Real estate revenue | 6,250,000 | 5,651,000 | ' |
Resident fees and services | 0 | ' | ' |
Total revenues | 6,250,000 | ' | ' |
Expenses: | ' | ' | ' |
Rental expenses | 850,000 | 655,000 | ' |
Segment net operating income | 5,400,000 | 4,996,000 | ' |
Other income (expense): | ' | ' | ' |
Total assets | 197,459,000 | ' | 194,847,000 |
Senior Housing [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Real estate revenue | 13,547,000 | 2,363,000 | ' |
Resident fees and services | 0 | ' | ' |
Total revenues | 13,547,000 | ' | ' |
Expenses: | ' | ' | ' |
Rental expenses | 554,000 | 156,000 | ' |
Segment net operating income | 12,993,000 | 2,207,000 | ' |
Other income (expense): | ' | ' | ' |
Total assets | 718,388,000 | ' | 699,420,000 |
Senior Housing-RIDEA [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Real estate revenue | 0 | 0 | ' |
Resident fees and services | 19,188,000 | ' | ' |
Total revenues | 19,188,000 | ' | ' |
Expenses: | ' | ' | ' |
Rental expenses | 14,185,000 | 0 | ' |
Segment net operating income | 5,003,000 | 0 | ' |
Other income (expense): | ' | ' | ' |
Total assets | 310,126,000 | ' | 313,279,000 |
All other [Member] | ' | ' | ' |
Other income (expense): | ' | ' | ' |
Total assets | 6,478,000 | ' | 19,070,000 |
UNITED STATES | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate revenue, net | 80,525,000 | 40,218,000 | ' |
Real estate investments, net | 2,050,319,000 | ' | 1,965,110,000 |
UNITED KINGDOM | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Real estate revenue, net | 10,931,000 | 0 | ' |
Real estate investments, net | $559,125,000 | ' | $558,589,000 |
Concentration_of_Credit_Risk_A
Concentration of Credit Risk - Additional Information (Detail) | 3 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |||||
USD ($) | USD ($) | Medical Office Buildings [Member] | Skilled Nursing Facilities [Member] | Senior Housing [Member] | Senior Housing-RIDEA [Member] | Hospitals [Member] | UNITED KINGDOM | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | ||||||
segment | USD ($) | GBP (£) | USD ($) | |||||||||||||
Person | ||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Minimum percent share of annualized base rent that company accounted | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Reportable business segments | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Percentage of annualized base rent | ' | ' | 46.30% | 19.00% | 18.30% | 8.50% | 7.90% | 14.70% | 14.70% | 14.70% | ' | |||||
Number of tenants accounting for 10% or more base rent | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Minimum percent share of annualized base rent accounted by tenants | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Annual base rent | ' | ' | ' | ' | ' | ' | ' | ' | $36,011 | £ 21,610 | [1],[2] | ' | ||||
Total advances outstanding | $24,934 | [3] | $18,595 | [3] | ' | ' | ' | ' | ' | ' | $18,288 | [3],[4] | £ 10,974 | $16,593 | [3],[4] | |
[1] | As of MarchB 31, 2014, we had advanced £10,974,000, or approximately $18,288,000 based on the currency exchange rate as of MarchB 31, 2014, under real estate notes receivable, to affiliates of Myriad Healthcare Limited. See Note 4, Real Estate Notes Receivable, Net, for a further discussion. | |||||||||||||||
[2] | Annualized base rent is based on contractual base rent from leases in effect as of MarchB 31, 2014 and was approximately $36,011,000 based on the currency exchange rate as of MarchB 31, 2014. The loss of this tenant or its inability to pay rent could have a material adverse effect on our business and results of operations. | |||||||||||||||
[3] | Outstanding balance represents the original principal balance, increased by any subsequent advances and decreased by any subsequent principal paydowns, and only requires monthly interest payments. The UK Development Facility is subject to certain prepayment restrictions if repaid on or before the maturity date. | |||||||||||||||
[4] | We entered into the UK Development Facility agreement on July 6, 2013, which was effective upon the acquisition of UK Senior Housing Portfolio on September 11, 2013. There are various maturity dates depending upon the timing of advances; however, the maturity date will be no later than March 10, 2022. Based on the currency exchange rate as of MarchB 31, 2014, the maximum amount of advances available was £66,691,000, or approximately $111,133,000, and the outstanding balance as of MarchB 31, 2014 was £10,974,000, or approximately $18,288,000. |
Concentration_of_Credit_Risk_S
Concentration of Credit Risk - Schedule of Annualized Base Rent from Tenants at Consolidated Properties (Detail) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | sqft | Myriad Healthcare Limited (MHL) Group [Member] | Myriad Healthcare Limited (MHL) Group [Member] | ||
USD ($) | GBP (£) | ||||
sqft | |||||
Annualized Base Rent From Tenants At Consolidated Properties [Line Items] | ' | ' | ' | ||
Annual base rent | ' | $36,011 | £ 21,610 | [1],[2] | |
Percentage of annualized base rent | ' | 14.70% | 14.70% | ||
GLA (Sq Ft) | 11,111,000 | 962,000 | 962,000 | ||
Lease expiration date | ' | 10-Sep-48 | [3] | 10-Sep-48 | [3] |
Length of lease in years | ' | 35 | 35 | ||
[1] | As of MarchB 31, 2014, we had advanced £10,974,000, or approximately $18,288,000 based on the currency exchange rate as of MarchB 31, 2014, under real estate notes receivable, to affiliates of Myriad Healthcare Limited. See Note 4, Real Estate Notes Receivable, Net, for a further discussion. | ||||
[2] | Annualized base rent is based on contractual base rent from leases in effect as of MarchB 31, 2014 and was approximately $36,011,000 based on the currency exchange rate as of MarchB 31, 2014. The loss of this tenant or its inability to pay rent could have a material adverse effect on our business and results of operations. | ||||
[3] | UK Senior Housing Portfolio is leased to one tenant under a 35-year absolute net lease with lease termination options on October 1, 2028 and October 1, 2038. |
Per_Share_Data_Additional_Info
Per Share Data - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Participating securities, distributed and undistributed earnings | $61,000 | $13,000 |
Restricted Common Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 95,232 | 28,500 |
Exchangeable Limited Partnership Units [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 281,800 | 51,900 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 63 Months Ended | 3 Months Ended | 1 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | 13-May-14 | Apr. 10, 2014 | |||
Building | Building | Current Advisor [Member] | Current Advisor [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
Building | Current Advisor [Member] | ||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | 280,031 | ' | ||
Repurchase of common stock | $2,130,000 | $2,700,000 | ' | ' | ' | $2,730,000 | ' | ||
Number of buildings acquired from unaffiliated parties | 7 | ' | 286 | ' | ' | 1 | ' | ||
Aggregate purchase price of acquisitions | 104,650,000 | [1] | ' | 2,890,361,000 | ' | ' | 13,700,000 | ' | |
Acquisition fee | 2,721,000 | [1],[2] | ' | ' | 2,846,000 | 2,485,000 | 356,000 | [3],[4] | ' |
Investment criteria - aggregate assets | ' | ' | ' | ' | ' | ' | 500,000,000 | ||
Investment criteria - purchase price option two | ' | ' | ' | ' | ' | ' | 100,000,000 | ||
Investment criteria - leverage ratio | ' | ' | ' | ' | ' | ' | 30.00% | ||
Investment criteria - purchase price option one | ' | ' | ' | ' | ' | ' | $20,000,000 | ||
[1] | We own 100% of our properties acquired in 2014. | ||||||||
[2] | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. | ||||||||
[3] | Our advisor entities and their affiliates were paid in cash, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.60% of the contract purchase price | ||||||||
[4] | We own 100% of our property acquired subsequent to MarchB 31, 2014. |
Subsequent_Events_Summary_of_A
Subsequent Events - Summary of Acquisitions of Properties (Detail) (USD $) | 3 Months Ended | 63 Months Ended | 1 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2014 | 13-May-14 | 13-May-14 | ||||
Subsequent Event [Member] | Surgical Hospital of Humble [Member] | ||||||
Subsequent Event [Member] | |||||||
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ' | ' | ' | ' | |||
Type | ' | ' | ' | 'Medical Office | [1] | ||
Date acquired | ' | ' | ' | 1-Apr-14 | [1] | ||
Aggregate purchase price of acquisitions | $104,650,000 | [2] | $2,890,361,000 | $13,700,000 | $13,700,000 | [1],[3] | |
Line of credit | 96,630,000 | [2],[4] | ' | ' | 13,650,000 | [1],[5] | |
Acquisition fee | $2,721,000 | [2],[6] | ' | $356,000 | [1],[7] | $356,000 | [1],[7] |
[1] | We own 100% of our property acquired subsequent to MarchB 31, 2014. | ||||||
[2] | We own 100% of our properties acquired in 2014. | ||||||
[3] | On April 1, 2014, we added one additional building to our existing Surgical Hospital of Humble Portfolio. The other building was purchased in December 2010. | ||||||
[4] | Represents borrowings under our unsecured revolving line of credit, as defined in Note 9, Line of Credit, at the time of acquisition. We periodically advance funds and pay down our unsecured revolving line of credit as needed. See Note 9, Line of Credit, for a further discussion. | ||||||
[5] | Represents borrowings under our unsecured line of credit at the time of acquisition. We periodically advance funds and pay down our unsecured line of credit as needed. | ||||||
[6] | Our sub-advisor and its affiliates were paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, an acquisition fee of 2.60% of the contract purchase price which was paid as follows: (i) in shares of our common stock in an amount equal to 0.15% of the contract purchase price, at $9.20 per share, the price paid to acquire a share of our common stock in our follow-on offering, net of selling commissions and dealer manager fees, and (ii) the remainder in cash equal to 2.45% of the contract purchase price. | ||||||
[7] | Our advisor entities and their affiliates were paid in cash, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, an acquisition fee of 2.60% of the contract purchase price |
Subsequent_Events_Summary_of_A1
Subsequent Events - Summary of Acquisitions of Properties (Parenthetical) (Detail) | 3 Months Ended | 63 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2014 | 13-May-14 | Mar. 31, 2014 | 13-May-14 | 13-May-14 | |
Building | Building | Subsequent Event [Member] | Current Advisor [Member] | Current Advisor [Member] | Surgical Hospital of Humble [Member] | |
Building | Subsequent Event [Member] | Subsequent Event [Member] | ||||
Building | ||||||
Schedule Of Summary Of Acquisitions Of Properties [Line Items] | ' | ' | ' | ' | ' | ' |
Property ownership percentage | 100.00% | ' | 100.00% | ' | ' | ' |
Acquisition fee of contract purchase price | ' | ' | ' | 2.60% | 2.60% | ' |
Number of buildings acquired from unaffiliated parties | 7 | 286 | 1 | ' | ' | 1 |