Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-55190 | ||
Entity Registrant Name | NORTHSTAR HEALTHCARE INCOME, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-3663988 | ||
Entity Address, Address Line One | 16 East 34th Street, | ||
Entity Address, Address Line Two | 18th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10016 | ||
City Area Code | 929 | ||
Local Phone Number | 777-3125 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 195,421,665 | ||
Entity Central Index Key | 0001503707 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 248 |
Cover
Cover | 12 Months Ended |
Dec. 31, 2022 | |
Cover [Abstract] | |
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain portions of the definitive proxy statement related to the registrant’s 2023 Annual Meeting of Stockholders to be filed hereafter are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this Annual Report on Form 10-K |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and cash equivalents | $ 103,926 | $ 200,473 | |
Restricted cash | 11,734 | 10,465 | |
Operating real estate, net | 933,002 | 972,599 | |
Investments in unconsolidated ventures | 176,502 | 212,309 | |
Receivables, net | 2,815 | 3,666 | |
Intangible assets, net | 2,253 | 2,590 | |
Other assets | 7,603 | 10,771 | |
Total assets | [1] | 1,237,835 | 1,412,873 |
Liabilities | |||
Mortgage and other notes payable, net | 912,248 | 929,811 | |
Due to related party | 469 | 7,338 | |
Escrow deposits payable | 993 | 1,171 | |
Accounts payable and accrued expenses | 21,034 | 24,671 | |
Other liabilities | 2,019 | 3,064 | |
Total liabilities | [1] | 936,763 | 966,055 |
Commitments and contingencies (Note 12) | |||
NorthStar Healthcare Income, Inc. Stockholders’ Equity | |||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding as of December 31, 2022 and December 31, 2021 | 0 | 0 | |
Common stock, $0.01 par value, 400,000,000 shares authorized, 195,421,665 and 193,120,940 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 1,954 | 1,930 | |
Additional paid-in capital | 1,729,589 | 1,720,719 | |
Retained earnings (accumulated deficit) | (1,428,840) | (1,277,688) | |
Accumulated other comprehensive income (loss) | (3,679) | (486) | |
Total NorthStar Healthcare Income, Inc. stockholders’ equity | 299,024 | 444,475 | |
Non-controlling interests | 2,048 | 2,343 | |
Total equity | 301,072 | 446,818 | |
Total liabilities and equity | $ 1,237,835 | $ 1,412,873 | |
[1]Represents the consolidated assets and liabilities of NorthStar Healthcare Income Operating Partnership, LP (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which NorthStar Healthcare Income, Inc. (together with its consolidated subsidiaries, the “Company”) is the sole general partner and owns approximately 99.99%. As of December 31, 2022, the Operating Partnership includes $220.9 million and $178.8 million of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. Refer to Note 2, “Summary of Significant Accounting Policies.” |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 195,421,665 | 193,120,940 | |
Common stock, shares outstanding (in shares) | 195,421,665 | 193,120,940 | |
Assets | [1] | $ 1,237,835 | $ 1,412,873 |
Liabilities | [1] | $ 936,763 | $ 966,055 |
Primary Beneficiary | |||
Ownership interest in operating partnership | 99.99% | ||
Primary Beneficiary | Northstar Healthcare Income Operating Partnership, LP | |||
Ownership interest in operating partnership | 99.99% | ||
Northstar Healthcare Income Operating Partnership, LP | Primary Beneficiary | |||
Assets | $ 220,900 | ||
Liabilities | $ 178,800 | ||
[1]Represents the consolidated assets and liabilities of NorthStar Healthcare Income Operating Partnership, LP (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which NorthStar Healthcare Income, Inc. (together with its consolidated subsidiaries, the “Company”) is the sole general partner and owns approximately 99.99%. As of December 31, 2022, the Operating Partnership includes $220.9 million and $178.8 million of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. Refer to Note 2, “Summary of Significant Accounting Policies.” |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Property and other revenues | ||||
Resident fee income | $ 44,274 | $ 105,955 | $ 118,126 | |
Rental income | 139,841 | 137,322 | 157,024 | |
Other revenue | 1,021 | 0 | 198 | |
Total property and other revenues | 185,136 | 243,277 | 275,348 | |
Interest income | ||||
Interest income on debt investments | 0 | 4,667 | 7,674 | |
Expenses | ||||
Property operating expenses | 137,578 | 177,936 | 184,178 | |
Interest expense | 43,278 | 61,620 | 65,991 | |
Transaction costs | 1,569 | 54 | 65 | |
Asset management fees - related party | 8,058 | 11,105 | 17,170 | |
General and administrative expenses | 13,938 | 12,691 | 16,505 | |
Depreciation and amortization | 38,587 | 54,836 | 65,006 | |
Impairment loss | 45,299 | 5,386 | 165,968 | |
Total expenses | 288,307 | 323,628 | 514,883 | |
Other income (loss) | ||||
Other income, net | 77 | 7,278 | 1,840 | |
Realized gain (loss) on investments and other | 1,029 | 79,477 | 302 | |
Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax expense | (102,065) | 11,071 | (229,719) | |
Equity in earnings (losses) of unconsolidated ventures | 47,625 | 15,843 | (34,466) | |
Income tax expense | (61) | (99) | (53) | |
Net income (loss) | (54,501) | 26,815 | (264,238) | |
Net (income) loss attributable to non-controlling interests | 401 | (1,748) | 2,780 | |
Net income (loss) attributable to NorthStar Healthcare Income, Inc. common stockholders | (54,100) | 25,067 | (261,458) | |
Net income (loss) attributable to NorthStar Healthcare Income, Inc. common stockholders | $ (54,100) | $ 25,067 | $ (261,458) | |
Net income (loss) per share of common stock, basic (in dollars per share) | [1] | $ (0.28) | $ 0.13 | $ (1.38) |
Net income (loss) per share of common stock, diluted (in dollars per share) | [1] | $ (0.28) | $ 0.13 | $ (1.38) |
Weighted average number of shares of common stock outstanding, basic (in shares) | [1] | 194,343,635 | 191,629,613 | 189,573,204 |
Weighted average number of shares of common stock outstanding, diluted (in shares) | [1] | 194,343,635 | 191,629,613 | 189,573,204 |
Distributions declared per share of common stock (in dollars per share) | $ 0.50 | $ 0 | $ 0 | |
[1]The Company issued 49,872 and 66,840 restricted stock units during the years ended December 31, 2022 and 2021, respectively. The impact of the restricted stock units on the diluted earnings per share calculation is de minimis for the years ended December 31, 2022 and 2021. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Number of shares granted to independent directors (in shares) | 49,872 | 66,840 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (54,501) | $ 26,815 | $ (264,238) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments related to investment in unconsolidated venture | (3,193) | (953) | 937 |
Total other comprehensive income (loss) | (3,193) | (953) | 937 |
Comprehensive income (loss) | (57,694) | 25,862 | (263,301) |
Comprehensive (income) loss attributable to non-controlling interests | 401 | (1,748) | 2,780 |
Comprehensive income (loss) attributable to NorthStar Healthcare Income, Inc. common stockholders | $ (57,293) | $ 24,114 | $ (260,521) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Parent | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | Noncontrolling Interest |
Beginning Balance (in shares) at Dec. 31, 2019 | 189,111,000 | ||||||
Beginning Balance at Dec. 31, 2019 | $ 667,504 | $ 662,384 | $ 1,891 | $ 1,702,260 | $ (1,041,297) | $ (470) | $ 5,120 |
Increase (Decrease) in Stockholder's Equity | |||||||
Share-based payment of advisor assets management fees (in shares) | 1,600,000 | ||||||
Share-based payment of advisor asset management fees | 9,685 | 9,685 | $ 16 | 9,669 | |||
Amortization of equity-based compensation (in shares) | 29,000 | ||||||
Issuance and amortization of equity-based compensation | 169 | 169 | 169 | ||||
Non-controlling interests - contributions | 234 | 234 | |||||
Non-controlling interests - distributions | (151) | (151) | |||||
Shares redeemed for cash (in shares) | (331,000) | ||||||
Stock redeemed or called during period, (in value) | (2,078) | (2,078) | $ (3) | (2,075) | |||
Other comprehensive income (loss) | 937 | 937 | 937 | ||||
Net income (loss) | (264,238) | (261,458) | (261,458) | (2,780) | |||
Ending Balance (in shares) at Dec. 31, 2020 | 190,409,000 | ||||||
Ending Balance at Dec. 31, 2020 | 412,062 | 409,639 | $ 1,904 | 1,710,023 | (1,302,755) | 467 | 2,423 |
Increase (Decrease) in Stockholder's Equity | |||||||
Share-based payment of advisor assets management fees (in shares) | 2,712,000 | ||||||
Share-based payment of advisor asset management fees | 10,557 | 10,557 | $ 26 | 10,531 | |||
Issuance and amortization of equity-based compensation | 165 | 165 | 165 | ||||
Non-controlling interests - contributions | 724 | 724 | |||||
Non-controlling interests - distributions | (2,552) | (2,552) | |||||
Other comprehensive income (loss) | (953) | (953) | (953) | ||||
Net income (loss) | $ 26,815 | 25,067 | 25,067 | 1,748 | |||
Ending Balance (in shares) at Dec. 31, 2021 | 193,120,940 | 193,121,000 | |||||
Ending Balance at Dec. 31, 2021 | $ 446,818 | 444,475 | $ 1,930 | 1,720,719 | (1,277,688) | (486) | 2,343 |
Increase (Decrease) in Stockholder's Equity | |||||||
Share-based payment of advisor assets management fees (in shares) | 2,300,000 | 2,301,000 | |||||
Share-based payment of advisor asset management fees | $ 8,866 | 8,866 | $ 24 | 8,842 | |||
Issuance and amortization of equity-based compensation | 28 | 28 | 28 | ||||
Non-controlling interests - contributions | 330 | 330 | |||||
Non-controlling interests - distributions | (224) | (224) | |||||
Distributions declared | (97,052) | (97,052) | (97,052) | ||||
Other comprehensive income (loss) | (3,193) | (3,193) | (3,193) | ||||
Net income (loss) | $ (54,501) | (54,100) | (54,100) | (401) | |||
Ending Balance (in shares) at Dec. 31, 2022 | 195,421,665 | 195,422,000 | |||||
Ending Balance at Dec. 31, 2022 | $ 301,072 | $ 299,024 | $ 1,954 | $ 1,729,589 | $ (1,428,840) | $ (3,679) | $ 2,048 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (54,501) | $ 26,815 | $ (264,238) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||
Equity in (earnings) losses of unconsolidated ventures | (47,625) | (15,843) | 34,466 |
Depreciation and amortization | 38,587 | 54,836 | 65,006 |
Impairment loss | 45,299 | 5,386 | 165,968 |
Capitalized interest for mortgage and other notes payable | 0 | 0 | 222 |
Amortization of below market debt | 3,247 | 3,169 | 3,090 |
Straight-line rental (income) loss, net | 0 | 7,803 | 441 |
Amortization of discount/accretion of premium on investments | 0 | (697) | (125) |
Amortization of deferred financing costs | 637 | 1,662 | 1,887 |
Amortization of equity-based compensation | 207 | 165 | 169 |
Paid-in-kind interest on real estate debt investment | 0 | (194) | 0 |
Realized (gain) loss on investments and other | (1,029) | (79,477) | (302) |
Change in allowance for uncollectible accounts | 519 | 176 | 2,371 |
Issuance of common stock as payment for asset management fees | 8,058 | 10,557 | 9,685 |
Distributions from unconsolidated ventures | 22,291 | 0 | 0 |
Changes in assets and liabilities: | |||
Receivables | 332 | 1,756 | (4,233) |
Other assets | 3,644 | (1,287) | 4,859 |
Due to related party | (5,928) | (985) | 2,853 |
Escrow deposits payable | (90) | (2,680) | 559 |
Accounts payable and accrued expenses | (5,222) | (17,346) | 8,479 |
Other liabilities | (602) | (254) | (139) |
Net cash provided by (used in) provided by operating activities | 7,824 | (6,438) | 31,018 |
Cash flows from investing activities: | |||
Capital expenditures for operating real estate | (29,304) | (27,773) | (15,214) |
Sales of operating real estate | 0 | 596,414 | 927 |
Repayment of real estate debt investment | 0 | 74,376 | 0 |
Investments in unconsolidated ventures | 0 | (400) | 0 |
Distributions from unconsolidated ventures | 44,842 | 18,110 | 5,923 |
Real estate debt investment modification fee | 0 | 686 | 0 |
Other assets | 0 | 413 | (51) |
Net cash provided by (used in) investing activities | 15,538 | 661,826 | (8,415) |
Cash flows from financing activities: | |||
Borrowings from mortgage notes | 0 | 26,000 | 0 |
Repayments of mortgage notes | (21,212) | (517,618) | (20,250) |
Borrowings from line of credit - related party | 0 | 0 | 35,000 |
Repayment of borrowings from line of credit - related party | 0 | (35,000) | 0 |
Payment of deferred financing costs | (36) | (708) | 0 |
Debt extinguishment costs | 0 | (8,288) | 0 |
Payments under finance leases | (480) | (578) | (608) |
Shares redeemed for cash | 0 | 0 | (2,078) |
Distributions paid on common stock | (97,018) | 0 | 0 |
Contributions from non-controlling interests | 330 | 724 | 234 |
Distributions to non-controlling interests | (224) | (2,552) | (151) |
Net cash (used in) provided by financing activities | (118,640) | (538,020) | 12,147 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (95,278) | 117,368 | 34,750 |
Cash, cash equivalents and restricted cash-beginning of period | 210,938 | 93,570 | 58,820 |
Cash, cash equivalents and restricted cash-end of period | 115,660 | 210,938 | 93,570 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 38,836 | 65,828 | 53,140 |
Cash paid for income taxes | 53 | 100 | 10 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accrued capital expenditures | 1,227 | 3,624 | 1,779 |
Assets acquired under finance leases | 0 | 144 | 112 |
Assets acquired under operating leases | 0 | 100 | 0 |
Reclassification of assets held for sale | $ 0 | $ 0 | $ 5,000 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization NorthStar Healthcare Income, Inc., together with its consolidated subsidiaries (the “Company”), owns a diversified portfolio of seniors housing properties, including independent living facilities (“ILF”), assisted living (“ALF”) and memory care facilities (“MCF”) located throughout the United States. In addition, the Company also has made investments through non-controlling interests in joint ventures in a broader spectrum of healthcare real estate, including seniors housing properties, as well as continuing care retirement communities (“CCRC”), skilled nursing (“SNF”), medical office buildings (“MOB”), specialty hospitals and ancillary services businesses, across the United States and United Kingdom. The Company was formed in October 2010 as a Maryland corporation and commenced operations in February 2013. The Company elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), commencing with the taxable year ended December 31, 2013. The Company has conducted its operations, and intends to do so in the future, so as to continue to qualify as a REIT for U.S. federal income tax purposes. Substantially all of the Company’s business is conducted through NorthStar Healthcare Income Operating Partnership, LP (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. The limited partners of the Operating Partnership are NorthStar Healthcare Income Advisor, LLC and NorthStar Healthcare Income OP Holdings, LLC (the “Special Unit Holder”). NorthStar Healthcare Income Advisor, LLC invested $1,000 in the Operating Partnership in exchange for common units and the Special Unit Holder invested $1,000 in the Operating Partnership and was issued a separate class of limited partnership units (the “Special Units”), which are collectively recorded as non-controlling interests on the accompanying consolidated balance sheets as of December 31, 2022 and December 31, 2021. As the Company issued shares, it contributed substantially all of the proceeds from its continuous, public offerings to the Operating Partnership as a capital contribution. As of December 31, 2022, the Company’s limited partnership interest in the Operating Partnership was 99.99%. The Company’s charter authorizes the issuance of up to 400.0 million shares of common stock with a par value of $0.01 per share and up to 50.0 million shares of preferred stock with a par value of $0.01 per share. The board of directors of the Company is authorized to amend its charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. From inception through December 31, 2022, the Company raised $2.0 billion in total gross proceeds from the sale of shares of common stock in its continuous, public offerings (the “Offering”), including $232.6 million pursuant to its distribution reinvestment plan (the “DRP”). The Internalization From inception through October 21, 2022, the Company was externally managed by CNI NSHC Advisors, LLC or its predecessor (the “Former Advisor”), an affiliate of NRF Holdco, LLC (the “Former Sponsor”). The Former Advisor was responsible for managing the Company’s operations, subject to the supervision of the Company’s board of directors, pursuant to an advisory agreement. On October 21, 2022, the Company completed the internalization of the Company’s management function (the “Internalization”). In connection with the Internalization, the Company agreed with the Former Advisor to terminate the advisory agreement and arranged for the Former Advisor to continue to provide certain services for a transition period. Going forward, the Company will be self-managed under the leadership of Kendall Young, who was appointed by the board of directors as Chief Executive Officer and President concurrent with the Internalization. Impact of COVID-19 The Company's healthcare real estate business and investments have been challenged by suboptimal occupancy levels, lower labor force participation rates, which has driven increased labor costs, and inflationary pressures on other operating expenses. These lasting effects from the response to the coronavirus 2019 (“COVID-19”) pandemic will continue to impact Company’s operational and financial performance. An extended recovery period increases the risk of a prolonged negative impact on the Company’s financial condition and results of operations. While the Company has the ability to meet its near term liquidity needs, general market concerns over credit and liquidity continue, and the effects of COVID-19 may also lead to heightened risk of litigation, with an ensuing increase in litigation and related costs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Accounting The accompanying consolidated financial statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Operating Partnership and their consolidated subsidiaries. The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity (“VIE”) for which the Company is deemed to be the primary beneficiary or if the Company has the power to control an entity through majority voting interest or other arrangements. All significant intercompany balances are eliminated in consolidation. Variable Interest Entities A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The determination of whether an entity is a VIE includes both a qualitative and quantitative analysis. The Company bases its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and relevant financial agreements and the quantitative analysis on the forecasted cash flow of the entity. The Company reassesses its initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events. A VIE must be consolidated only by its primary beneficiary, which is defined as the party who, along with its affiliates and agents, has both the: (i) power to direct the activities that most significantly impact the VIE’s economic performance; and (ii) obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of its investment; the obligation or likelihood for the Company or other interests to provide financial support; consideration of the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders and the similarity with and significance to the business activities of the Company and the other interests. The Company reassesses its determination of whether it is the primary beneficiary of a VIE each reporting period. Judgments related to these determinations include estimates about the current and future fair value and performance of investments held by these VIEs and general market conditions. The Company evaluates its investments and financings, including investments in unconsolidated ventures and securitization financing transactions to determine whether each investment or financing is a VIE. The Company analyzes new investments and financings, as well as reconsideration events for existing investments and financings, which vary depending on type of investment or financing. As of December 31, 2022, the Company has identified certain consolidated and unconsolidated VIEs. Assets of each of the VIEs, other than the Operating Partnership, may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company. Consolidated VIEs The most significant consolidated VIEs are the Operating Partnership and certain properties that have non-controlling interests. These entities are VIEs because the non-controlling interests do not have substantive kick-out or participating rights. The Operating Partnership consolidates certain properties that have non-controlling interests. Included in operating real estate, net on the Company’s consolidated balance sheet as of December 31, 2022 is $213.3 million related to such consolidated VIEs. Included in mortgage and other notes payable, net on the Company’s consolidated balance sheet as of December 31, 2022 is $173.2 million, collateralized by the real estate assets of the related consolidated VIEs. Unconsolidated VIEs As of December 31, 2022, the Company identified unconsolidated VIEs related to its investments in unconsolidated ventures with a carrying value of $176.5 million. The Company’s maximum exposure to loss as of December 31, 2022 would not exceed the carrying value of its investment in the VIEs. Based on management’s analysis, the Company determined that it is not the primary beneficiary of these VIEs and, accordingly, they are not consolidated in the Company’s financial statements as of December 31, 2022. The Company did not provide financial support to its unconsolidated VIEs during the year ended December 31, 2022. As of December 31, 2022, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to its unconsolidated VIEs. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. Investments in Unconsolidated Ventures A non-controlling, unconsolidated ownership interest in an entity may be accounted for using the equity method or the Company may elect the fair value option. The Company will account for an investment under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does not have a controlling financial interest. Under the equity method, the investment is adjusted each period for capital contributions and distributions and its share of the entity’s net income (loss). Capital contributions, distributions and net income (loss) of such entities are recorded in accordance with the terms of the governing documents. An allocation of net income (loss) may differ from the stated ownership percentage interest in such entity as a result of preferred returns and allocation formulas, if any, as described in such governing documents. Equity method investments are recognized using a cost accumulation model, in which the investment is recognized based on the cost to the investor, which includes acquisition fees. The Company records as an expense certain acquisition costs and fees associated with consolidated investments deemed to be business combinations and capitalizes these costs for investments deemed to be acquisitions of an asset, including an equity method investment. Non-controlling Interests A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company. A non-controlling interest is required to be presented as a separate component of equity on the consolidated balance sheets and presented separately as net income (loss) and comprehensive income (loss) attributable to controlling and non-controlling interests. An allocation to a non-controlling interest may differ from the stated ownership percentage interest in such entity as a result of a preferred return and allocation formula, if any, as described in such governing documents. Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions. Any estimates of the effects of the COVID-19 pandemic, inflation, rising interest rates, risk of recession and other economic conditions as reflected and/or discussed in these financial statements are based upon the Company's best estimates using information known to the Company as of the date of this Annual Report on Form 10-K. Such estimates may change and the impact of which could be material. Cash, Cash Equivalents and Restricted Cash The Company considers all highly-liquid investments with an original maturity date of three months or less to be cash equivalents. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution. The Company mitigates credit risk by placing cash and cash equivalents with major financial institutions. To date, the Company has not experienced any losses on cash and cash equivalents. Restricted cash consists of amounts related to operating real estate (escrows for taxes, insurance, capital expenditures, security deposits received from residents and payments required under certain lease agreements) and other escrows required by lenders of the Company’s borrowings. The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported on the consolidated balance sheets to the total of such amounts as reported on the consolidated statements of cash flows (dollars in thousands): December 31, 2022 2021 2020 Cash and cash equivalents $ 103,926 $ 200,473 $ 65,995 Restricted cash 11,734 10,465 27,575 Total cash, cash equivalents and restricted cash $ 115,660 $ 210,938 $ 93,570 Operating Real Estate Operating real estate is carried at historical cost less accumulated depreciation. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their useful life. Ordinary repairs and maintenance are expensed as incurred. Operating real estate is depreciated using the straight-line method over the estimated useful life of the assets, summarized as follows: Category: Term: Building 30 to 50 years Building improvements Lesser of the useful life or remaining life of the building Land improvements 9 to 15 years Tenant improvements Lesser of the useful life or remaining term of the lease Furniture, fixtures and equipment 5 to 14 years Construction costs incurred in connection with the Company’s investments are capitalized and included in operating real estate, net on the consolidated balance sheets. Construction in progress is not depreciated until the asset is available for its intended use. Lessee Accounting A leasing arrangement, a right to control the use of an identified asset for a period of time in exchange for consideration, is classified by the lessee either as a finance lease, which represents a financed purchase of the leased asset, or as an operating lease. For leases with terms greater than 12 months, a lease asset and a lease liability are recognized on the balance sheet at commencement date based on the present value of lease payments over the lease term. Lease renewal or termination options are included in the lease asset and lease liability only if it is reasonably certain that the option to extend would be exercised or the option to terminate would not be exercised. As the implicit rate in most leases are not readily determinable, the Company’s incremental borrowing rate for each lease at commencement date is used to determine the present value of lease payments. Consideration is given to the Company’s recent debt financing transactions, as well as publicly available data for instruments with similar characteristics, adjusted for the respective lease term, when estimating incremental borrowing rates. Lease expense is recognized over the lease term based on an effective interest method for finance leases and on a straight-line basis for operating leases. Right of Use (“ROU”) - Finance Assets The Company has entered into finance leases for equipment which are included in operating real estate, net million. The leased equipment is amortized on a straight-line basis. Payments for finance leases totaled $0.5 million and $0.7 million for the years ended December 31, 2022 and 2021, respectively, including assets that were disposed of through portfolio sales. The following table presents the future minimum lease payments under finance leases and the present value of the minimum lease payments, which are included in other liabilities Years Ending December 31: 2023 $ 97 2024 60 2025 29 2026 24 2027 18 Thereafter 10 Total minimum lease payments $ 238 Less: Amount representing interest (29) Present value of minimum lease payments $ 209 The weighted average interest rate related to the finance lease obligations is 7.5% with a weighted average lease term of 3.4 years. As of December 31, 2022, there were no leases that had yet to commence which would create significant rights and obligations to the Company as lessee. Intangible Assets and Deferred Costs Deferred Costs Deferred costs primarily include deferred financing costs and deferred leasing costs. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. These costs are recorded against the carrying value of such financing and are amortized to interest expense over the term of the financing using the effective interest method. Unamortized deferred financing costs are expensed to realized gain (loss) on investments and other, when the associated borrowing is repaid before maturity. Costs incurred in seeking financing transactions which do not close are expensed in the period in which it is determined that the financing will not occur. Deferred lease costs consist of fees incurred to initiate and renew operating leases, which are amortized on a straight-line basis over the remaining lease term and are recorded to depreciation and amortization in the consolidated statements of operations. Identified Intangibles The Company records acquired identified intangibles, such as the value of in-place leases and other intangibles, based on estimated fair value at the acquisition date. The value allocated to the identified intangibles is amortized over the remaining lease term. In-place leases are amortized into depreciation and amortization expense. Impairment analysis for identified intangible assets is performed in connection with the impairment assessment of the related operating real estate. An impairment establishes a new basis for the identified intangible asset and any impairment loss recognized is not subject to subsequent reversal. Refer to “—Impairment on Operating Real Estate and Investments in Unconsolidated Ventures” for additional information. Identified intangible assets are recorded in intangible assets, net on the consolidated balance sheets. Intangible assets relate to the Company’s in-place lease values for the Company’s four net lease properties. The following table presents intangible assets, net (dollars in thousands): December 31, 2022 December 31, 2021 In-place lease value $ 120,149 $ 120,149 Less: Accumulated amortization (117,896) (117,559) Intangible assets, net $ 2,253 $ 2,590 The Company recorded $0.3 million and $1.4 million of amortization expense for in-place leases for the years ended December 31, 2022 and 2021, respectively. The following table presents future amortization of in-place lease value (dollars in thousands): Years Ending December 31: 2023 $ 337 2024 337 2025 337 2026 337 2027 337 Thereafter 568 Total $ 2,253 Derivative Instruments The Company uses derivative instruments to manage its interest rate risk. The Company’s derivative instruments are recorded at fair value. The accounting for changes in fair value of derivatives depends upon whether or not the Company has elected to designate the derivative in a hedging relationship and the derivative qualifies for hedge accounting. Under hedge accounting, changes in fair value for derivatives are recorded through other comprehensive income. When hedge accounting is not elected, changes in fair value for derivatives are recorded through the income statement. The Company has interest rate caps that have not been designated for hedge accounting. The fair value of the Company's interest rate caps totaled $0.7 million and $0.1 million as of December 31, 2022 and 2021, respectively, and are included in other assets on the consolidated balance sheets. Changes in fair value of derivatives Revenue Recognition Operating Real Estate Rental income from operating real estate is derived from leasing of space to operators and residents, including rent received from the Company’s net lease properties and rent, ancillary service fees and other related revenue earned from ILF residents. Rental income recognition commences when the operator takes legal possession of the leased space and the leased space is substantially ready for its intended use. The leases are for fixed terms of varying length and generally provide for rentals and expense reimbursements to be paid in monthly installments. Rental income from leases, which includes community and move-in fees, is recognized over the term of the respective leases. ILF resident agreements are generally short-term in nature and may allow for termination with 30 days’ notice. The Company also generates revenue from operating healthcare properties. Revenue related to operating healthcare properties includes resident room and care charges, ancillary fees and other resident service charges. Rent is charged and revenue is recognized when such services are provided, generally defined per the resident agreement as of the date upon which a resident occupies a room or uses the services. Resident agreements are generally short-term in nature and may allow for termination with 30 days’ notice. Revenue derived from our ALFs, MCFs and CCRCs is recorded in resident fee income in the consolidated statements of operations. Revenue from operators and residents is recognized at lease commencement only to the extent collection is expected to be probable. This assessment is based on several qualitative and quantitative factors, including and as appropriate, the payment history, ability to satisfy its lease obligations, the value of the underlying collateral or deposit, if any, and current economic conditions. If collection is assessed to not be probable thereafter, lease income recognized is limited to amounts collected, with the reversal of any revenue recognized to date in excess of amounts received. If collection is subsequently reassessed to be probable, revenue is adjusted to reflect the amount that would have been recognized had collection always been assessed as probable. The operator of the Company’s four net lease properties failed to remit contractual monthly rent obligations and the Company deemed it not probable that these obligations will be satisfied in the foreseeable future. For the year ended December 31, 2022, the Company recorded rental income to the extent rental payments were received. For the years ended December 31, 2022 and 2021, total property and other revenue includes variable lease revenue of $11.2 million and $13.1 million, respectively. Variable lease revenue includes ancillary services provided to operator/residents, as well as non-recurring services and fees at the Company’s operating facilities. The Company did not receive or recognize any grant income from the Provider Relief Fund administered by the U.S. Department of Health and Human Services during the year ended December 31, 2022. During the year ended December 31, 2021, the Company recognized $7.7 million of grant income. The grant income is classified as other income, net in the consolidated statements of operations. These grants are intended to mitigate the negative financial impact of the COVID-19 pandemic as reimbursements for expenses incurred to prevent, prepare for and respond to COVID-19 and lost revenues attributable to COVID-19. Provided that the Company attests to and complies with certain terms and conditions of the grants, the Company will not be required to repay these grants in the future. Real Estate Debt Investments Interest income is recognized on an accrual basis and any related premium, discount, origination costs and fees are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income in the consolidated statements of operations. The amortization of a premium or accretion of a discount is discontinued if such investment is reclassified to held for sale. The Company had one debt investment, which was repaid in full in August 2021. Impairment on Operating Real Estate and Investments in Unconsolidated Ventures At this time, it is difficult for the Company to assess and estimate the continuing impact of the COVID-19 pandemic, inflation, rising interest rates, risk of recession and other economic conditions. The future economic effects will depend on many factors beyond the Company’s control and knowledge. The resulting effect on impairment of the Company's real estate held for investment and held for sale and investments in unconsolidated ventures may materially differ from the Company's current expectations and further impairment charges may be recorded in future periods. Operating Real Estate The Company’s real estate portfolio is reviewed on a quarterly basis, or more frequently as necessary, to assess whether there are any indicators that the value of its operating real estate may be impaired or that its carrying value may not be recoverable. A property’s value is considered impaired if the Company’s estimate of the aggregate expected future undiscounted cash flow generated by the property is less than the carrying value. In conducting this review, the Company considers U.S. macroeconomic factors, real estate and healthcare sector conditions, together with asset specific and other factors. To the extent an impairment has occurred, the loss is measured as the excess of the carrying value of the property over the estimated fair value and recorded in impairment loss in the consolidated statements of operations. Real estate held for sale is stated at the lower of its carrying amount or estimated fair value less disposal cost, with any write-down to disposal cost recorded as an impairment loss. For any increase in fair value less disposal cost subsequent to classification as held for sale, the impairment may be reversed, but only up to the amount of cumulative loss previously recognized. The Company considered the potential impact of the lasting effects of the COVID-19 pandemic, inflation, rising interest rates, risk of recession and other economic conditions on the future net operating income of its healthcare real estate held for investment as an indicator of impairment. Fair values were estimated based upon the income capitalization approach, using net operating income for each property and applying indicative capitalization rates. During the year ended December 31, 2022, the Company recorded impairment losses on its operating real estate totaling $31.9 million. The Company recorded impairment losses of $18.5 million, $8.5 million and $3.9 million for facilities in its Arbors, Winterfell and Rochester portfolios, respectively, as a result of declining operating margins and lower projected future cash flows. In addition, the Company recorded impairment losses totaling $0.8 million and $0.2 million for property damage sustained by facilities in its Winterfell portfolio and a facility in our Avamere portfolio, respectively. During the year ended December 31, 2021, the Company recorded impairment losses totaling $5.4 million, consisting of $4.6 million recognized for one independent living facility within its Winterfell portfolio and $0.8 million for its Smyrna net lease property, which was sold in May 2021. Investments in Unconsolidated Ventures The Company reviews its investments in unconsolidated ventures for which the Company did not elect the fair value option on a quarterly basis, or more frequently as necessary, to assess whether there are any indicators that the value may be impaired or that its carrying value may not be recoverable. An investment is considered impaired if the projected net recoverable amount over the expected holding period is less than the carrying value. In conducting this review, the Company considers global macroeconomic factors, including real estate sector conditions, together with investment specific and other factors. To the extent an impairment has occurred on the Company’s investment in unconsolidated ventures, and is considered to be other than temporary, the loss is measured as the excess of the carrying value of the investment over the estimated fair value and recorded in impairment loss in the consolidated statements of operations. The Company recorded impairment on its investment in the Diversified US/UK joint venture, which totaled $13.4 million and reduced the carrying value of its investment in the Diversified US/UK joint venture to $28.4 million as of December 31, 2022. The Company’s assessment for the recoverability of its investment took into consideration the joint venture’s post-COVID-19 underperformance, rising interest rates and the joint venture’s ability to continue to service debt collateralized by substantially all of its domestically-located healthcare real estate. In addition, during the years ended December 31, 2022 and 2021, the underlying joint ventures recorded impairments and reserves on properties in their respective portfolios, which the Company recognized through equity in earnings (losses), of which the Company’s proportionate share was $25.1 million and $1.8 million, respectively. Credit Losses on Receivables The current expected credit loss model, in estimating expected credit losses over the life of a financial instrument at the time of origination or acquisition, considers historical loss experiences, current conditions and the effects of reasonable and supportable expectations of changes in future macroeconomic conditions. The Company assesses the estimate of expected credit losses on a quarterly basis or more frequently as necessary. The Company considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company measures expected credit losses of receivables on a collective basis when similar risk characteristics exist. If the Company determines that a particular receivable does not share risk characteristics with its other receivables, the Company evaluates the receivable for expected credit losses on an individual basis. When developing an estimate of expected credit losses on receivables, the Company considers available information relevant to assessing the collectability of cash flows. This information may include internal information, external information, or a combination of both relating to past events, current conditions, and reasonable and supportable forecasts. The Company considers relevant qualitative and quantitative factors that relate to the environment in which the Company operates and are specific to the borrower. Further, the fair value of the collateral, less estimated costs to sell, may be used when determining the allowance for credit losses for a receivable for which the repayment is expected to be provided substantially through the sale of the collateral when the borrower is experiencing financial difficulty. As of December 31, 2022, the Company has not recorded an allowance for credit losses on its receivables. Acquisition Fees and Expenses The Company recorded an expense for certain acquisition costs and fees associated with transactions deemed to be business combinations in which it consolidated the asset and capitalized these costs for transactions deemed to be acquisitions of an asset, including an equity investment. Effective January 1, 2018, the Former Advisor no longer received an acquisition fee in connection with the Company’s acquisitions of real estate properties or debt investments. Equity-Based Compensation The Company accounts for equity-based compensation awards using the fair value method, which requires an estimate of fair value of the award at the time of grant. All fixed equity-based awards to directors, which have no vesting conditions other than time of service, are amortized to compensation expense over the awards’ vesting period on a straight-line basis. Equity-based compensation is classified within general and administrative expenses in the consolidated statements of operations. Income Taxes The Company elected to be taxed as a REIT and to comply with the related provisions of the Internal Revenue Code beginning in its taxable year ended December 31, 2013. Accordingly, the Company will generally not be subject to U.S. federal income tax to the extent of its distributions to stockholders as long as certain asset, gross income and share ownership tests are met. To maintain its qualification as a REIT, the Company must annually distribute dividends equal to at least 90.0% of its REIT taxable income (with certain adjustments) to its stockholders and meet certain other requirements. The Company believes that all of the criteria to maintain the Company’s REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax and potential interest and penalties, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company’s accounting policy with respect to interest and penalties is to classify these amounts as a component of income tax expense, where applicable. The Company has assessed its tax positions for all open tax years, which include 2018 to 2022, and concluded there were no material uncertainties to be recognized. The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on its undistributed taxable income. The Company made a joint election to treat certain subsidiaries as taxable REIT subsidiaries (“TRS”) which may be subject to U.S. federal, state and local income taxes. In general, a TRS of the Company may perform services for managers/operators/residents of the Company, hold assets that the Company cannot hold directly and may engage in any real estate or non-real estate related business. Certain subsidiaries of the Company are subject to taxation by federal and state authorities for the periods presented. Income taxes are accounted for by the asset/liability approach in accordance with U.S. GAAP. Deferred taxes, if any, represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. Such amounts arise from differences between the financial reporting and tax bases of assets and liabilities and are adjusted for changes in tax laws and tax rates in the period which such changes are enacted. A provision for income tax represents the total of income taxes paid or payable for the current period, plus the change in deferred taxes. Current and deferred taxes are provided on the portion of earnings (losses) recognized by the Company with respect to its interest in the TRS. Deferred income tax assets and liabilities are calculated based on temporary differences between the Company’s U.S. GAAP consolidated financial statements and the federal and state income tax basis of assets and liabilities as of the consolidated balance sheet date. The Company evaluates the realizabilit |
Operating Real Estate
Operating Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Operating Real Estate | Operating Real Estate The following table presents operating real estate, net (dollars in thousands): December 31, 2022 December 31, 2021 Land $ 121,518 $ 121,518 Land improvements 18,945 17,798 Buildings and improvements 957,924 965,630 Tenant improvements 372 — Construction in progress 6,736 8,141 Furniture, fixtures and equipment 91,058 84,813 Subtotal $ 1,196,553 $ 1,197,900 Less: Accumulated depreciation (263,551) (225,301) Operating real estate, net $ 933,002 $ 972,599 For the years ended December 31, 2022, 2021 and 2020, depreciation expense was $38.3 million, $53.5 million and $63.1 million, respectively. Within the table above, buildings and improvements have been reduced by accumulated impairment losses of $181.5 million and $149.7 million as of December 31, 2022 and December 31, 2021, respectively. Operating real estate impairment losses totaled $31.9 million and $5.4 million for the years ended December 31, 2022 and 2021, respectively. Refer to Note 2, “Summary of Significant Accounting Policies” for further discussion. Net Lease Rental Income Net lease properties owned as of December 31, 2022 have current lease expirations of 2029, with certain operator renewal rights. These net lease arrangements require the operator to pay rent and substantially all the expenses of the leased property including maintenance, taxes, utilities and insurance. The Company’s net lease agreements provide for periodic rental increases based on the greater of certain percentages or increase in the consumer price index. Beginning in February 2021, the operator of the Company’s net lease properties failed to remit contractual monthly rent obligations and the Company deemed it not probable that these obligations will be satisfied in the future. As a result, during the year ended December 31, 2022, the Company recorded rental income to the extent rental payments were received. The following table presents the future contractual rent obligations for the operator of the Company’s net lease properties over the next five years and thereafter as of December 31, 2022 (dollars in thousands): Years Ending December 31: (1) 2023 $ 10,919 2024 11,192 2025 11,472 2026 11,759 2027 12,053 Thereafter 21,792 Total $ 79,187 _______________________________________ (1) Excludes rental income from residents at ILFs that are subject to short-term leases. |
Investments in Unconsolidated V
Investments in Unconsolidated Ventures | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Ventures | Investments in Unconsolidated Ventures All investments in unconsolidated ventures are accounted for under the equity method. The following table presents the Company’s investments in unconsolidated ventures (dollars in thousands): Carrying Value (1) Portfolio Acquisition Date Ownership December 31, 2022 December 31, 2021 Trilogy Dec-2015 23.2 % $ 128,884 $ 126,366 Diversified US/UK Dec-2014 14.3 % 28,442 80,766 Espresso (2) Jul-2015 36.7 % 18,019 — Eclipse May-2014 5.6 % 834 4,856 Subtotal $ 176,179 $ 211,988 Solstice (3) Jul-2017 20.0 % 323 321 Total $ 176,502 $ 212,309 _______________________________________ (1) Includes $1.3 million and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse and Trilogy joint ventures, respectively. (2) As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its investment in Espresso was reduced to zero in the fourth quarter of 2018. The Company recognized its proportionate share of earnings and losses of the Espresso joint venture through the carrying value of its mezzanine loan debt investment, which was originated to a subsidiary of the Espresso joint venture, through the time of its repayment in August 2021. During the year ended December 31, 2022, the Espresso joint venture recognized gains on sub-portfolio sales, which increased the Company’s carrying value in its investment as of December 31, 2022. (3) Represents investment in Solstice Senior Living, LLC (“Solstice”), the manager of the Winterfell portfolio. Solstice is a joint venture between affiliates of Integral Senior Living, LLC (“ISL”), a management company of ILF, ALF and MCF founded in 2000, which owns 80.0%, and the Company, which owns 20.0%. The following table presents the results of the Company’s investment in unconsolidated ventures (dollars in thousands): Year Ended December 31, 2022 2021 Portfolio Equity in Earnings (Losses) Cash Distribution Equity in Earnings (Losses) Cash Distribution Trilogy $ 11,652 $ 9,134 $ (2,891) $ 4,638 Diversified US/UK (1) (33,280) 2,433 (3,676) 4,257 Espresso (2) 72,427 54,654 19,619 5,500 Eclipse (3,176) 846 2,130 2,898 Envoy — 66 740 817 Subtotal $ 47,623 $ 67,133 $ 15,922 $ 18,110 Solstice 2 — (79) — Total $ 47,625 $ 67,133 $ 15,843 $ 18,110 _______________________________________ (1) The Diversified US/UK joint venture recognized equity in losses during the year ended December 31, 2022 as a result of declining operating performance at the joint venture’s net lease portfolios and the portfolio in the United Kingdom. In addition, the joint venture recorded impairment on its operating and net lease portfolios, of which our proportionate share was $22.9 million. (2) During the year ended December 31, 2022, the Espresso joint venture recognized net gains related to sub-portfolio sales, of which the Company’s proportionate share totaled $70.6 million. The Company was distributed its proportionate share of the net proceeds generated from the sales totaling $49.7 million. Summarized Financial Data The following table presents the Company’s unconsolidated ventures combined balance sheets as of December 31, 2022 and 2021 and combined statements of operations for the year ended December 31, 2022, 2021 and 2020 (dollars in thousands): December 31, 2022 December 31, 2021 Years Ended December 31, 2022 2021 2020 Assets Operating real estate, net $ 3,763,674 $ 4,051,899 Total revenues $ 1,644,894 $ 1,493,341 $ 1,562,284 Other assets 1,015,121 1,273,224 Net income (loss) $ (40,890) $ 59,321 $ (294,501) Total assets $ 4,778,795 $ 5,325,123 Liabilities and equity Total liabilities $ 4,022,608 $ 4,277,887 Equity 756,187 1,047,236 Total liabilities and equity $ 4,778,795 $ 5,325,123 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following table presents the Company’s mortgage and other notes payable (dollars in thousands): December 31, 2022 December 31, 2021 Recourse vs. Non-Recourse Initial Contractual Interest Rate (1) Principal Amount (2) Carrying Value (2) Principal (2) Carrying (2) Mortgage notes payable, net Aqua Portfolio Frisco, TX (3) Non-recourse Feb 2026 3.0% $ 26,000 $ 25,560 $ 26,000 $ 25,431 Milford, OH Non-recourse Sep 2026 LIBOR + 2.68% 18,336 18,126 18,661 18,388 Rochester Portfolio Rochester, NY Non-recourse Feb 2025 4.25% 18,206 18,165 18,911 18,853 Rochester, NY (4) Non-recourse Aug 2027 LIBOR + 2.34% 100,651 100,042 101,224 100,495 Rochester, NY Non-recourse Aug 2023 LIBOR + 2.90% 11,336 11,315 11,732 11,716 Arbors Portfolio (5) Various locations Non-recourse Feb 2025 3.99% 83,423 83,051 85,369 84,799 Winterfell Portfolio (6) Various locations Non-recourse Jun 2025 4.17% 596,408 588,306 608,810 597,460 Avamere Portfolio (7) Various locations Non-recourse Feb 2027 4.66% 67,995 67,683 69,144 68,755 Subtotal mortgage notes payable, net $ 922,355 $ 912,248 $ 939,851 $ 925,897 Other notes payable Oak Cottage Santa Barbara, CA (8) Non-recourse Repaid 6.00% $ — $ — $ 3,914 $ 3,914 Subtotal other notes payable, net $ — $ — $ 3,914 $ 3,914 Total mortgage and other notes payable, net $ 922,355 $ 912,248 $ 943,765 $ 929,811 _______________________________________ (1) Floating-rate borrowings total $130.3 million of principal outstanding and reference one-month LIBOR. (2) The difference between principal amount and carrying value of mortgage notes payable is attributable to deferred financing costs, net for all borrowings, other than the Winterfell portfolio which is attributable to below market debt intangibles. (3) The mortgage note carries a fixed interest rate of 3.0% through February 2024, followed by one-month adjusted SOFR, plus 2.80% through the initial maturity date of February 2026. (4) Composed of seven individual mortgage notes payable secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default. (5) Composed of four individual mortgage notes payable secured by four healthcare real estate properties, cross-collateralized and subject to cross-default. (6) Composed of 32 individual mortgage notes payable secured by 32 healthcare real estate properties, cross-collateralized and subject to cross-default. (7) Composed of five individual mortgage notes payable secured by five healthcare real estate properties, cross-collateralized and subject to cross-default. (8) In June 2022, the Company repaid the outstanding financing on the Oak Cottage portfolio at discounted payoff of $3.7 million. The following table presents future scheduled principal payments on mortgage and other notes payable based on initial maturity (dollars in thousands): Years Ending December 31: 2023 $ 30,256 2024 19,612 2025 669,466 2026 46,876 2027 156,145 Thereafter — Total $ 922,355 As of December 31, 2022, the operator for the Arbors portfolio failed to remit contractual rent and comply with other contractual terms of its lease agreements, which resulted in defaults under the operator’s leases, which in turn, resulted in a non-monetary default under the mortgage notes collateralized by the properties. During the year ended December 31, 2022, the Company remitted contractual debt service and is in compliance with the other contractual terms under the mortgage notes collateralized by the properties. The financial covenant requirements under a mortgage note secured by a property in the Rochester portfolio have been waived by the lender through December 31, 2023. During the year ended December 31, 2022, the Company remitted contractual debt service and is in compliance with the other contractual terms under the mortgage note. As of December 31, 2022, the mortgage note payable had an outstanding principal balance of $18.2 million, which matures in February 2025. The mortgage note payable is not cross collateralized by the other properties in the Rochester portfolio. Line of Credit - Related Party |
Related Party Arrangements
Related Party Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements Former Advisor Prior to the Internalization, the Former Advisor was responsible for managing the Company’s affairs on a day-to-day basis and for identifying, acquiring, originating and asset managing investments on behalf of the Company. For such services, to the extent permitted by law and regulations, the Former Advisor received fees and reimbursements from the Company. Pursuant to the advisory agreement, the Former Advisor could defer or waive fees in its discretion. In connection with the Internalization, the advisory agreement was terminated on October 21, 2022. Fees to Former Advisor Asset Management Fee Prior to the termination of the advisory agreement, the Former Advisor received a monthly asset management fee equal to one-twelfth of 1.5% of the Company’s most recently published aggregate estimated net asset value, as may be subject to adjustments for any special distribution declared by the board of directors in connection with a sale, transfer or other disposition of a substantial portion of the Company’s assets. Effective July 1, 2021, the asset management fee was paid entirely in shares of the Company’s common stock at a price per share equal to the most recently published net asset value per share. From January 1, 2022 through the October 21, 2022 termination of the advisory agreement, the fee was reduced if the Company’s corporate cash balance exceeded $75.0 million, subject to the terms and conditions set forth in the advisory agreement. As of December 31, 2022, there was no outstanding asset management fee due to the Former Advisor as a result of the termination of the advisory agreement. Acquisition Fee Effective January 1, 2018, the Former Advisor no longer received an acquisition fee in connection with the Company’s acquisitions of real estate properties or debt investments. Disposition Fee Effective June 30, 2020, the Former Advisor no longer had the potential to receive a disposition fee in connection with the sale of real estate properties or debt investments. Reimbursements to Former Advisor Operating Costs Under the Company’s new internalized structure, the Company directly incurs and pays all operating costs. Prior to the termination of the advisory agreement, the Former Advisor was entitled to receive reimbursement for direct and indirect operating costs incurred by the Former Advisor in connection with administrative services provided to the Company. The Former Advisor allocated, in good faith, indirect costs to the Company related to the Former Advisor’s and its affiliates’ employees, occupancy and other general and administrative costs and expenses in accordance with the terms of, and subject to the limitations contained in, the advisory agreement with the Former Advisor. The indirect costs included the Company’s allocable share of the Former Advisor’s compensation and benefit costs associated with dedicated or partially dedicated personnel who spent all or a portion of their time managing the Company’s affairs, based upon the percentage of time devoted by such personnel to the Company’s affairs. The indirect costs also included rental and occupancy, technology, office supplies and other general and administrative costs and expenses. However, there was no reimbursement for personnel costs related to executive officers (although reimbursement for certain executive officers of the Former Advisor was permissible) and other personnel involved in activities for which the Former Advisor received an acquisition fee or a disposition fee. The Former Advisor allocated these costs to the Company relative to its and its affiliates’ other managed companies in good faith and reviewed the allocation with the Company’s board of directors, including its independent directors. The Former Advisor updated the board of directors on a quarterly basis of any material changes to the expense allocation and provided a detailed review to the board of directors, at least annually, and as otherwise requested by the board of directors. Total operating costs (including the asset management fee) reimbursable to our Former Advisor were limited based on a calculation for the four preceding fiscal quarters not to exceed the greater of: (i) 2.0% of its average invested assets; or (ii) 25.0% of its net income determined without reduction for any additions to reserves for depreciation, loan losses or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Notwithstanding the above, the Company can incur expenses in excess of this limitation if a majority of the Company’s independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. As of December 31, 2022, the Former Advisor did not have any unreimbursed operating costs which remained eligible to be allocated to the Company. Transition Services In connection with the Internalization, on October 21, 2022, the Company, the Operating Partnership and the Former Advisor entered into a Transition Services Agreement (the “TSA”) to facilitate an orderly transition of the Company’s management of its operations. The TSA, as amended from time to time, provides for, among other things, the Former Advisor to provide certain services, including primarily technology and insurance, for a transition period of up to six months following the Internalization, with legal, treasury and accounts payable services to continue until either party terminates these services in accordance with the TSA. The Company will reimburse the Former Advisor for costs to provide the services, including the allocated cost of employee wages and compensation and incurred out-of-pocket expenses. Summary of Fees and Reimbursements The following table presents the fees and reimbursements incurred and paid to the Former Advisor (dollars in thousands): Type of Fee or Reimbursement Due to Related Party as of December 31, 2021 Year Ended December 31, 2022 Due to Related Party as of December 31, 2022 Financial Statement Location Incurred Paid Fees to Former Advisor Entities Asset management (1) Asset management fees-related party $ 937 $ 8,058 $ (8,995) (1) $ — Reimbursements to Former Advisor Entities Operating costs General and administrative expenses/ Transaction costs 6,401 9,258 (2) (15,190) 469 Total $ 7,338 $ 17,316 $ (24,185) $ 469 _______________________________________ (1) As a result of the termination of the advisory agreement on October 21, 2022, there was no outstanding asset management fees due to the Former Advisor as of December 31, 2022. Asset management fees paid through the year ended December 31, 2022 include a $0.1 million gain recognized on the settlement of the share-based payment. (2) Includes $0.1 million for costs incurred under the TSA during the year ended December 31, 2022. Type of Fee or Reimbursement Due to Related Party as of December 31, 2020 Year Ended December 31, 2021 Due to Related Party as of December 31, 2021 Financial Statement Location Incurred Paid Fees to Former Advisor Entities Asset management (1) Asset management fees-related party $ 923 $ 11,105 $ (11,091) (1) $ 937 Reimbursements to Former Advisor Entities Operating costs General and administrative expenses 7,395 14,035 (15,029) 6,401 Total $ 8,318 $ 25,140 $ (26,120) $ 7,338 _______________________________________ (1) Includes $10.6 million paid in shares of the Company’s common stock. Pursuant to the advisory agreement, for the year ended December 31, 2022, the Company issued 2.3 million shares totaling $8.9 million, based on the estimated value per share on the date of each issuance, to an affiliate of the Former Advisor as part of its asset management fee. As of December 31, 2022, the Former Advisor, the Former Sponsor and their affiliates owned a total of 9.7 million shares, or $28.4 million of the Company’s common stock based on the Company’s most recent estimated value per share. As of December 31, 2022, the Former Advisor, the Former Sponsor and their affiliates owned 4.97% of the total outstanding shares of the Company’s common stock. Incentive Fee The Special Unit Holder, an affiliate of the Former Advisor, is entitled to receive distributions equal to 15.0% of net cash flows of the Company, whether from continuing operations, repayment of loans, disposition of assets or otherwise, but only after stockholders have received, in the aggregate, cumulative distributions equal to their invested capital plus a 6.75% cumulative, non-compounded annual pre-tax return on such invested capital. From inception through December 31, 2022, the Special Unit Holder has not received any incentive fees from the Company. Investments in Joint Ventures Solstice, the manager of the Winterfell portfolio, is a joint venture between affiliates of ISL, which owns 80.0%, and the Company, which owns 20.0%. For the year ended December 31, 2022, the Company recognized property management fee expense of $5.6 million paid to Solstice related to the Winterfell portfolio. The below table indicates the Company’s investments for which the Former Sponsor is also an equity partner in the joint venture. Each investment was approved by the Company’s board of directors, including all of its independent directors. Refer to Note 4, “Investments in Unconsolidated Ventures” for further discussion of these investments: Portfolio Partner(s) Acquisition Date Ownership Eclipse NRF and Partner/ May 2014 5.6% Diversified US/UK NRF and Partner December 2014 14.3% Line of Credit - Related Party |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation The Company adopted a long-term incentive plan, as amended (the “Plan”), which it may use to attract and retain qualified officers, directors, employees and consultants, as well as an independent directors compensation plan, which is a component of the Plan. Under the Plan, 2.0 million shares of restricted common stock were eligible to be issued for any equity-based awards granted under the Plan. Pursuant to the Plan, as of December 31, 2022, the Company’s independent directors were granted a total of 159,932 shares of restricted common stock and 116,712 restricted stock units totaling $1.3 million and $0.5 million, respectively, based on the share price on the date of each grant. The restricted common stock and restricted stock units granted generally vest quarterly over two years in equal installments and will become fully vested on the earlier occurrence of: (i) the termination of the independent director’s service as a director due to his or her death or disability; or (ii) a change in control of the Company. The restricted stock units are convertible, on a one-for-one basis, into shares of the Company’s common stock upon the earlier occurrence of: (i) the termination of the independent director’s service as a director; or (ii) a change in control of the Company. The Company recognized equity-based compensation expense of $206,917, $230,083 and $168,917 for the years ended December 31, 2022, 2021 and 2020, respectively. Equity-based compensation expense is recorded in general and administrative expenses in the consolidated statements of operations. Unrecognized expense related to unvested restricted common stock and restricted stock units totaled $211,250 and $223,167 as of December 31, 2022 and 2021, respectively. The Company had 4,800 shares of restricted common stock that were unvested as of December 31, 2021 and have fully vested as of December 31, 2022. Unvested restricted stock units totaled 54,114 and 50,130 as of December 31, 2022 and 2021, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The Company stopped accepting subscriptions for its Offering on December 17, 2015 and all of the shares initially registered for its Offering were issued on or before January 19, 2016. The Company issued 173.4 million shares of common stock generating gross proceeds of $1.7 billion, excluding proceeds from the DRP. Distribution Reinvestment Plan The Company adopted the DRP through which common stockholders were able to elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. Since inception, the Company issued 25.7 million shares of common stock, generating gross offering proceeds of $232.6 million pursuant to the DRP. No selling commissions or dealer manager fees were paid on shares issued pursuant to the DRP. The board of directors of the Company may amend, suspend or terminate the DRP for any reason upon ten-days’ notice to participants, except that the Company may not amend the DRP to eliminate a participant’s ability to withdraw from the DRP. In April 2022, the Company’s board of directors elected to suspend the DRP, effective April 30, 2022. As a result, all future distributions, if any, will be paid in cash. For the year ended December 31, 2022, the Company has not issued shares of common stock pursuant to the DRP. Distributions Effective February 1, 2019, the Company’s board of directors determined to suspend recurring distributions in order to preserve capital and liquidity. On April 20, 2022, the Company’s board of directors declared and paid a special distribution of $0.50 per share (the “Special Distribution”) for each stockholder of record on May 2, 2022 totaling approximately $97.1 million. In order to continue to qualify as a REIT, the Company must distribute annually dividends equal to at least 90% of its REIT taxable income (with certain adjustments). The Company did not have REIT taxable income for its taxable year ending December 31, 2021, therefore, it was not required to make distributions to its stockholders in 2021 to qualify as a REIT. The Company’s most recently filed tax return is for the year ended December 31, 2021 and includes a net operating loss carry-forward of $226.5 million. Share Repurchase Program The Company adopted the share repurchase program (the “Share Repurchase Program”) that enabled stockholders to sell their shares to the Company in limited circumstances. The Company is not obligated to repurchase shares under the Share Repurchase Program. The Company may amend, suspend or terminate the Share Repurchase Program at its discretion at any time, subject to certain notice requirements. In April 2020, the Company’s board of directors determined to suspend all repurchases under the Share Repurchase Program effective April 30, 2020 in order to preserve capital and liquidity and has not repurchased any shares during the year ended December 31, 2022. |
Non-controlling Interests
Non-controlling Interests | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Non-controlling Interests Operating Partnership Non-controlling interests include the aggregate limited partnership interests in the Operating Partnership held by limited partners, other than the Company. Income (loss) attributable to the non-controlling interests is based on the limited partners’ ownership percentage of the Operating Partnership. Income (loss) allocated to the Operating Partnership non-controlling interests for the years ended December 31, 2022, 2021 and 2020 was de minimis. Other Other non-controlling interests represent third-party equity interests in ventures that are consolidated with the Company’s financial statements. Net loss attributable to the other non-controlling interests was $0.4 million for the year ended December 31, 2022. Net income attributable to the other non-controlling interests was $1.7 million for the year ended December 31, 2021. Net loss attributable to other non-controlling interest was $2.8 million for the year ended December 31, 2020. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurement The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Quoted prices for identical assets or liabilities in an active market. Level 2. Financial assets and liabilities whose values are based on the following: a) Quoted prices for similar assets or liabilities in active markets. b) Quoted prices for identical or similar assets or liabilities in non-active markets. c) Pricing models whose inputs are observable for substantially the full term of the asset or liability. d) Pricing models whose inputs are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability. Level 3. Prices or valuation techniques based on inputs that are both unobservable and significant to the overall fair value measurement. Derivative Instruments Derivative instruments consist of interest rate contracts and foreign exchange contracts that are generally traded over-the-counter, and are valued using a third-party service provider. Quotations on over-the counter derivatives are not adjusted and are generally valued using observable inputs such as contractual cash flows, yield curve, foreign currency rates and credit spreads, and are classified as Level 2 of the fair value hierarchy. Although credit valuation adjustments, such as the risk of default, rely on Level 3 inputs, these inputs are not significant to the overall valuation of its derivatives. As a result, derivative valuations in their entirety are classified as Level 2 of the fair value hierarchy. Fair Value Hierarchy Financial assets recorded at fair value on a recurring basis are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents financial assets that were accounted for at fair value on a recurring basis as of December 31, 2022 and 2021 by level within the fair value hierarchy (dollars in thousands): December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets: Derivative assets - interest rate caps $ — $ 652 $ — $ — $ 105 $ — Fair Value of Financial Instruments U.S. GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value. The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities (dollars in thousands): December 31, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Financial liabilities: (1) Mortgage and other notes payable, net $ 922,355 $ 912,248 $ 882,754 $ 943,765 $ 929,811 $ 889,485 _______________________________________ (1) The fair value of other financial instruments not included in this table is estimated to approximate their carrying value. Disclosure about fair value of financial instruments is based on pertinent information available to management as of the reporting date. Although management is not aware of any factors that would significantly affect fair value, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein. Mortgage and Other Notes Payable The Company primarily uses rates currently available with similar terms and remaining maturities to estimate fair value. These measurements are determined using comparable U.S. Treasury and LIBOR rates as of the end of the reporting period. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy. Nonrecurring Fair Values The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or otherwise, write-down of asset values due to impairment. The following table summarizes the fair value, measured at the time of impairment, of Level 3 assets which have been measured at fair value on a nonrecurring basis during the periods presented and the associated impairment losses (dollars in thousands): Years Ended December 31, 2022 2021 2020 Fair Value Impairment Losses Fair Value Impairment Losses Fair Value Impairment Losses Operating real estate, net (1) $ 80,931 $ 30,900 $ 11,793 $ 5,386 $ 234,650 $ 164,215 Investments in unconsolidated ventures $ 28,442 $ 13,419 — — — — Assets held for sale — — — — 5,000 1,753 _______________________________________ (1) During the year ended December 31, 2022, the Company recorded impairment losses totaling $1.0 million for property damage sustained by facilities in its Winterfell and Avamere portfolios. The fair value and impairment losses of these facilities are excluded from the table as of December 31, 2022. Operating Real Estate, Net Operating real estate that is impaired is carried at fair value at the time of impairment. Impairment was driven by various factors that impacted undiscounted future net cash flows, including declines in operating performance, market growth assumptions, and expected margins to be generated by the properties. Fair value of impaired operating real estate was estimated based upon various approaches including discounted cash flow analysis using terminal capitalization rates ranging from 6.0% to 8.0% and discount rates ranging from 7.0% to 10.5%, third party appraisals and offer prices. Investments in Unconsolidated Ventures The Company recorded impairment on its investment in the Diversified US/UK joint venture, which totaled $13.4 million and reduced the carrying value of its investment in the Diversified US/UK joint venture to $28.4 million as of December 31, 2022. The Company’s assessment for the recoverability of its investment took into consideration the joint venture’s post-COVID-19 underperformance, rising interest rates and the joint venture’s ability to continue to service debt collateralized by substantially all of its domestically-located healthcare real estate. Fair value of the joint venture’s underlying operating real estate was estimated based upon various approaches including discounted cash flow analysis, using terminal capitalization rates ranging from 6.6% to 12.5% and discount rates ranging from 8.8% to 16.0%, and offer prices. Assets Held For Sale Assets held for sale are carried at the lower of amortized cost or fair value. Assets held for sale that were written down to fair value were generally valued using either broker opinions of value, or a combination of market information, including third-party appraisals and indicative sale prices, adjusted as deemed appropriate by management to account for the inherent risk associated with specific properties. In all cases, fair value of real estate held for sale is reduced for estimated selling costs. As of December 31, 2022 and December 31, 2021, the Company did not have any assets classified as held for sale. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company conducts its business through the following segments, which are based on how management reviews and manages its business. • Direct Investments - Operating - Properties operated pursuant to management agreements with healthcare managers. • Direct Investments - Net Lease - Properties operated under net leases with an operator. • Unconsolidated Investments - Joint ventures, including properties operated under net leases with operators or pursuant to management agreements with healthcare managers, in which the Company owns a minority interest. • Corporate - The corporate segment includes corporate level asset management fees - related party and general and administrative expenses. • Debt Investments - Mortgage loans or mezzanine loans to owners of healthcare real estate. The Company’s remaining mezzanine loan was repaid in August 2021. The Company primarily generates rental and resident fee income from its direct investments. Additionally, the Company reports its proportionate interest of revenues and expenses from unconsolidated investments through equity in earnings (losses) of unconsolidated ventures. During the years ended December 31, 2021 and 2020, the Company generated interest income on its real estate debt investment. The following tables present segment reporting (dollars in thousands): Direct Investments Year Ended December 31, 2022 Net Lease Operating Unconsolidated Investments Debt Investment Corporate (1) Total Property and other revenues $ 1,596 $ 182,519 $ — $ — $ 1,021 $ 185,136 Interest income on debt investments — — — — — — Property operating expenses (39) (137,539) — — — (137,578) Interest expense (3,609) (39,669) — — — (43,278) Transaction costs — — — — (1,569) (1,569) Asset management fees - related party — — — — (8,058) (8,058) General and administrative expenses — (31) — — (13,907) (13,938) Depreciation and amortization (3,329) (35,258) — — — (38,587) Impairment loss (18,500) (13,380) (13,419) — — (45,299) Other income, net — 77 — — — 77 Realized gain (loss) on investments and other 88 499 310 — 132 1,029 Equity in earnings (losses) of unconsolidated ventures — — 47,625 — — 47,625 Income tax expense — (61) — — — (61) Net income (loss) $ (23,793) $ (42,843) $ 34,516 $ — $ (22,381) $ (54,501) _______________________________________ (1) Includes unallocated asset management fee-related party and general and administrative expenses. Direct Investments Year Ended December 31, 2021 Net Lease Operating Unconsolidated Investments Debt Investment Corporate (1) Total Property and other revenues $ 14,708 $ 228,569 $ — $ — $ — $ 243,277 Interest income on debt investments — — — 4,667 — 4,667 Property operating expenses (29) (177,907) — — — (177,936) Interest expense (10,900) (49,979) — — (741) (61,620) Transaction costs — (54) — — — (54) Asset management fees - related party — — — — (11,105) (11,105) General and administrative expenses (192) (227) — — (12,272) (12,691) Depreciation and amortization (11,748) (43,088) — — — (54,836) Impairment loss (786) (4,600) — — — (5,386) Other income, net — 7,278 — — — 7,278 Realized gain (loss) on investments and other 10,601 64,618 4,263 — (5) 79,477 Equity in earnings (losses) of unconsolidated ventures — — 15,843 — — 15,843 Income tax benefit (expense) — (99) — — — (99) Net income (loss) $ 1,654 $ 24,511 $ 20,106 $ 4,667 $ (24,123) $ 26,815 _______________________________________ (1) Includes unallocated asset management fee-related party and general and administrative expenses. Direct Investments Year Ended December 31, 2020 Net Lease Operating Unconsolidated Investments Debt Corporate (1) Total Property and other revenues $ 32,899 $ 242,250 $ — $ — $ 199 $ 275,348 Interest income on debt investments — — — 7,674 — 7,674 Property operating expenses (13) (184,165) — — — (184,178) Interest expense (11,832) (53,210) — — (949) (65,991) Transaction costs (58) (7) — — — (65) Asset management fees - related party — — — — (17,170) (17,170) General and administrative expenses (804) (296) — (19) (15,386) (16,505) Depreciation and amortization (14,940) (50,066) — — — (65,006) Impairment loss (722) (165,246) — — — (165,968) Other income, net — 1,840 — — — 1,840 Realized gain (loss) on investments and other — (13) — — 315 302 Equity in earnings (losses) of unconsolidated ventures — — (34,466) — — (34,466) Income tax benefit (expense) — (53) — — — (53) Net income (loss) $ 4,530 $ (208,966) $ (34,466) $ 7,655 $ (32,991) $ (264,238) _______________________________________ (1) Includes unallocated asset management fee-related party and general and administrative expenses. The following table presents total assets by segment (dollars in thousands): Direct Investments Total Assets: Net Lease Operating Unconsolidated Investments Debt Investment Corporate (1) Total December 31, 2022 $ 83,435 $ 884,137 $ 176,502 $ — $ 93,761 $ 1,237,835 December 31, 2021 104,809 908,517 212,309 — 187,238 1,412,873 ______________________________________ (1) Represents primarily corporate cash and cash equivalents balances. The following table presents the operators and managers of the Company’s properties, excluding properties owned through unconsolidated joint ventures (dollars in thousands): As of December 31, 2022 Year Ended December 31, 2022 Operator / Manager Properties Under Management Units Under Management (1) Property and Other Revenues (2) % of Total Property and Other Revenues Solstice Senior Living (3) 32 3,993 $ 112,553 60.8 % Watermark Retirement Communities 14 1,782 45,276 24.3 % Avamere Health Services 5 453 19,778 10.7 % Integral Senior Living 1 40 4,913 2.7 % Arcadia Management (4) 4 572 1,597 0.9 % Other (5) — — 1,019 0.6 % Total 56 6,840 $ 185,136 100.0 % ______________________________________ (1) Represents rooms for ALFs and ILFs and MCFs, based on predominant type. (2) Includes rental income received from the Company’s net lease properties as well as rental income, ancillary service fees and other related revenue earned from ILF residents and resident fee income derived from the Company’s ALFs and MCFs, which includes resident room and care charges, ancillary fees and other resident service charges. (3) Solstice is a joint venture of which affiliates of ISL own 80%. (4) During the year ended December 31, 2022, the Company recorded rental income to the extent payments were received. (5) Consists primarily of interest income earned on corporate-level cash accounts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of December 31, 2022, the Company believes there are no material contingencies that would affect its results of operations, cash flows or financial position. Litigation and Claims The Company may be involved in various litigation matters arising in the ordinary course of its business. Although the Company is unable to predict with certainty the eventual outcome of any litigation, any current legal proceedings are not expected to have a material adverse effect on its financial position or results of operations. The Company’s tenants, operators and managers may be involved in various litigation matters arising in the ordinary course of their business. The unfavorable resolution of any such actions, investigations or claims could, individually or in the aggregate, materially adversely affect such tenants’, operators’ or managers’ liquidity, financial condition or results of operations and their ability to satisfy their respective obligations to the Company, which, in turn, could have a material adverse effect on the Company. The effects of the COVID-19 pandemic may also lead to heightened risk of litigation, with an ensuing increase in litigation-related costs. As of December 31, 2022, the Company recorded a contingency reserve of $0.5 million related to litigation matters against the manager of one of the Company’s direct operating investments, for which the Company has indemnification obligations under the management agreement. Environmental Matters The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its consolidated financial position, results of operations or cash flows. Further, the Company is not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that it believes would require additional disclosure or the recording of a loss contingency. General Uninsured Losses The Company obtains various types of insurance to mitigate the impact of professional liability, property, business interruption, liability, flood, windstorm, earthquake, environmental and terrorism related losses. The Company attempts to obtain appropriate policy terms, conditions, limits and deductibles considering the relative risk of loss, the cost of such coverage and current industry practice. There are, however, certain types of extraordinary losses, such as those due to acts of war or other events, including those that are related to the effects of the COVID-19 pandemic, that may be either uninsurable or not economically insurable. Other |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The following is a discussion of material events which have occurred subsequent to December 31, 2022 through the issuance of the consolidated financial statements. Diversified US/UK Joint Venture In February 2023, due to a variety of factors, subsidiaries of the Diversified US/UK Portfolio terminated the purchase and sale agreement to sell the MOB Sub-Portfolio and all of the MOBs and two specialty hospitals within the Mixed U.S. Sub-Portfolio and the transaction proceeded with the sale of only the MOB Sub-Portfolio for a purchase price of $121.5 million, substantially all of which was used to repay debt on the MOB Sub-Portfolio and pay transaction expenses. As a result of the reduced sale price and terminated purchase and sale agreement, the joint venture recorded additional impairment for the year ended December 31, 2022 which the Company recognized through equity in earnings (losses) on its consolidated statements of operations. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | Initial Cost Gross Amount Carried at Close of Period (2) Location City, State Encumbrances Land Building & Improvements Capitalized Subsequent to Acquisition (1) Land Building & Improvements Total Accumulated Depreciation Net Book Value Date Acquired Life on Which Depreciation is Computed Direct Investments - Operating Milford, OH 18,336 1,160 14,440 3,789 1,160 18,229 19,389 5,011 14,378 Dec-13 40 years Milford, OH — 700 — 5,647 700 5,647 6,347 750 5,597 Jul-17 40 years Frisco, TX 26,000 3,100 35,874 4,281 3,100 40,155 43,255 9,805 33,450 Feb-14 40 years Apple Valley, CA 20,104 1,168 24,625 (4,849) 1,168 19,776 20,944 5,154 15,790 Mar-16 40 years Auburn, CA 22,712 1,694 18,438 1,687 1,694 20,125 21,819 4,905 16,914 Mar-16 40 years Austin, TX 25,008 4,020 19,417 2,801 4,020 22,218 26,238 5,766 20,472 Mar-16 40 years Bakersfield, CA 15,871 1,831 21,006 1,744 1,831 22,750 24,581 5,463 19,118 Mar-16 40 years Bangor, ME 20,240 2,463 23,205 1,743 2,463 24,948 27,411 5,469 21,942 Mar-16 40 years Bellingham, WA 22,474 2,242 18,807 2,021 2,242 20,828 23,070 4,913 18,157 Mar-16 40 years Clovis, CA 17,687 1,821 21,721 1,359 1,821 23,080 24,901 5,204 19,697 Mar-16 40 years Columbia, MO 21,399 1,621 23,521 (6,565) 1,621 16,956 18,577 5,435 13,142 Mar-16 40 years Corpus Christi, TX 17,535 2,263 20,142 (4,499) 2,263 15,643 17,906 4,738 13,168 Mar-16 40 years East Amherst, NY 17,466 2,873 18,279 3,019 2,873 21,298 24,171 4,413 19,758 Mar-16 40 years El Cajon, CA 19,785 2,357 14,733 1,467 2,357 16,200 18,557 3,921 14,636 Mar-16 40 years El Paso, TX 11,510 1,610 14,103 1,734 1,610 15,837 17,447 3,862 13,585 Mar-16 40 years Fairport, NY 15,575 1,452 19,427 2,969 1,452 22,396 23,848 4,413 19,435 Mar-16 40 years Fenton, MO 23,145 2,410 22,216 1,335 2,410 23,551 25,961 5,502 20,459 Mar-16 40 years Grand Junction, CO 18,369 2,525 26,446 3,169 2,525 29,615 32,140 6,024 26,116 Mar-16 40 years Grand Junction, CO 9,412 1,147 12,523 1,213 1,147 13,736 14,883 3,313 11,570 Mar-16 40 years Grapevine, TX 21,054 1,852 18,143 (8,171) 1,852 9,972 11,824 4,029 7,795 Mar-16 40 years Groton, CT 16,588 3,673 21,879 (6,048) 3,673 15,831 19,504 5,098 14,406 Mar-16 40 years Guilford, CT 22,905 6,725 27,488 (19,684) 6,725 7,804 14,529 4,766 9,763 Mar-16 40 years Joliet, IL 14,057 1,473 23,427 (5,957) 1,473 17,470 18,943 4,793 14,150 Mar-16 40 years Kennewick, WA 7,236 1,168 18,933 1,779 1,168 20,712 21,880 4,644 17,236 Mar-16 40 years Las Cruces, NM 10,545 1,568 15,091 1,987 1,568 17,078 18,646 4,169 14,477 Mar-16 40 years Lee’s Summit, MO 25,629 1,263 20,500 2,851 1,263 23,351 24,614 5,233 19,381 Mar-16 40 years Lodi, CA 18,958 2,863 21,152 2,259 2,863 23,411 26,274 5,316 20,958 Mar-16 40 years Normandy Park, WA 15,299 2,031 16,407 (2,844) 2,031 13,563 15,594 4,096 11,498 Mar-16 40 years Palatine, IL 18,957 1,221 26,993 (10,972) 1,221 16,021 17,242 6,149 11,093 Mar-16 40 years Plano, TX 15,168 2,200 14,860 (4,878) 2,200 9,982 12,182 3,917 8,265 Mar-16 40 years Renton, WA 17,954 2,642 20,469 3,058 2,642 23,527 26,169 5,219 20,950 Mar-16 40 years Sandy, UT 14,892 2,810 19,132 (5,631) 2,810 13,501 16,311 4,194 12,117 Mar-16 40 years Santa Rosa, CA 26,342 5,409 26,183 2,627 5,409 28,810 34,219 6,484 27,735 Mar-16 40 years Sun City West, AZ 24,204 2,684 29,056 (4,604) 2,684 24,452 27,136 6,620 20,516 Mar-16 40 years Tacoma, WA 28,328 7,974 32,435 3,575 7,977 36,007 43,984 8,688 35,296 Mar-16 40 years Frisco, TX — 1,130 — 12,648 1,130 12,648 13,778 2,414 11,364 Oct-16 40 years Albany, OR 8,351 958 6,625 (3,490) 758 3,335 4,093 1,449 2,644 Feb-17 40 years Port Townsend, WA 15,966 1,613 21,460 1,259 996 23,336 24,332 4,719 19,613 Feb-17 40 years Roseburg, OR 11,813 699 11,589 844 459 12,673 13,132 2,605 10,527 Feb-17 40 years Sandy, OR 13,474 1,611 16,697 1,040 1,233 18,115 19,348 3,475 15,873 Feb-17 40 years Santa Barbara, CA — 2,408 15,674 531 2,408 16,205 18,613 2,763 15,850 Feb-17 40 years Wenatchee, WA 18,391 2,540 28,971 1,058 1,534 31,035 32,569 5,570 26,999 Feb-17 40 years Churchville, NY 6,538 296 7,712 896 296 8,608 8,904 1,919 6,985 Aug-17 35 years Greece, NY — 534 18,158 (11,063) 533 7,096 7,629 1,729 5,900 Aug-17 49 years Greece, NY 26,681 1,007 31,960 2,400 1,007 34,360 35,367 6,278 29,089 Aug-17 41 years Henrietta, NY 11,814 1,153 16,812 1,592 1,152 18,405 19,557 4,247 15,310 Aug-17 36 years Penfield, NY 12,431 781 20,273 (11,445) 781 8,828 9,609 3,963 5,646 Aug-17 30 years Penfield, NY 10,856 516 9,898 955 515 10,854 11,369 2,368 9,001 Aug-17 35 years Rochester, NY 18,206 2,426 31,861 3,665 2,425 35,527 37,952 6,541 31,411 Aug-17 39 years Rochester, NY 5,311 297 12,484 (8,992) 296 3,493 3,789 2,328 1,461 Aug-17 37 years Initial Cost Gross Amount Carried at Close of Period (2) Location City, State Encumbrances Land Building & Improvements Capitalized Subsequent to Acquisition (1) Land Building & Improvements Total Accumulated Depreciation Net Book Value Date Acquired Life on Which Depreciation is Computed Victor, NY 27,020 1,060 33,246 2,533 1,059 35,780 36,839 6,443 30,396 Aug-17 41 years Victor, NY 11,336 557 13,570 57 555 13,629 14,184 1,916 12,268 Nov-17 41 years Undeveloped Land Rochester, NY — 544 — — 544 — 544 — 544 Aug-17 (3) Penfield, NY — 534 — — 534 — 534 — 534 Aug-17 (3) Direct Investments - Net Lease Bohemia, NY 22,198 4,258 27,805 (3,939) 4,258 23,866 28,124 6,626 21,498 Sep-14 40 years Hauppauge, NY 13,468 2,086 18,495 (149) 2,086 18,346 20,432 5,087 15,345 Sep-14 40 years Islandia, NY 33,094 8,437 37,198 (12,238) 8,437 24,960 33,397 9,046 24,351 Sep-14 40 years Westbury, NY 14,663 2,506 19,163 293 2,506 19,456 21,962 4,589 17,373 Sep-14 40 years Total $ 922,355 $ 123,964 $ 1,120,722 $ (48,133) $ 121,518 $ 1,075,035 $ 1,196,553 $ 263,551 $ 933,002 ______________________________________ (1) Negative amount represents impairment of operating real estate. (2) The aggregate cost for federal income tax purposes is approximately $1.5 million. (3) Depreciation is not recorded on land. The following table presents changes in the Company’s operating real estate portfolio for the years ended December 31, 2022, 2021 and 2020 (dollars in thousands): Year Ended December 31, 2022 2021 2020 Balance at beginning of year $ 1,197,900 $ 1,774,971 $ 1,931,032 Dispositions — (603,082) — Improvements 30,531 31,397 17,036 Impairment (31,878) (5,386) (165,246) Subtotal 1,196,553 1,197,900 1,782,822 Classified as held for sale (1) — — (7,851) Balance at end of year (2) $ 1,196,553 $ 1,197,900 $ 1,774,971 _____________________________ (1) Amounts classified as held for sale during the year and remained as held for sale at the end of the year. (2) The aggregate cost of the properties is approximately $349.4 million higher for federal income tax purposes as of December 31, 2022. The following table presents changes in accumulated depreciation for the years ended December 31, 2022, 2021 and 2020 (dollars in thousands): Year Ended December 31, 2022 2021 2020 Balance at beginning of year $ 225,301 $ 291,041 $ 230,814 Depreciation expense 38,250 53,476 63,078 Property dispositions — (119,216) — Subtotal 263,551 225,301 293,892 Classified as held for sale — — (2,851) Balance at end of year $ 263,551 $ 225,301 $ 291,041 |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | The Company’s mezzanine loan debt investment was repaid in full in August 2021. The following table presents changes in the Company’s real estate debt investments for the years ended December 31, 2022, 2021 and 2010 (dollars in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ — $ 55,864 $ 55,468 Additions: Capitalized payment-in-kind interest — 194 — Loan modification fees — (687) — Deductions: Reclassification (1) — 18,307 271 Repayment of principal — (74,376) — Amortization of acquisition costs, fees, premiums and discounts — 698 125 Balance at end of year $ — $ — $ 55,864 _______________________________________ (1) As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its Espresso unconsolidated investment was reduced to zero as of December 31, 2018. The Company has recorded the excess equity in losses related to its unconsolidated venture as a reduction to the carrying value of its mezzanine loan, which was originated to a subsidiary of the Espresso joint venture and was repaid in full in August 2021. During the year ended December 31, 2021, the Company received distributions from the joint venture greater than the Company’s carrying value of its unconsolidated investment, which resulted in the Company recording a gain on the distribution and a carrying value of zero as of December 31, 2021. |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | The Company’s mezzanine loan debt investment was repaid in full in August 2021. The following table presents changes in the Company’s real estate debt investments for the years ended December 31, 2022, 2021 and 2010 (dollars in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ — $ 55,864 $ 55,468 Additions: Capitalized payment-in-kind interest — 194 — Loan modification fees — (687) — Deductions: Reclassification (1) — 18,307 271 Repayment of principal — (74,376) — Amortization of acquisition costs, fees, premiums and discounts — 698 125 Balance at end of year $ — $ — $ 55,864 _______________________________________ (1) As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its Espresso unconsolidated investment was reduced to zero as of December 31, 2018. The Company has recorded the excess equity in losses related to its unconsolidated venture as a reduction to the carrying value of its mezzanine loan, which was originated to a subsidiary of the Espresso joint venture and was repaid in full in August 2021. During the year ended December 31, 2021, the Company received distributions from the joint venture greater than the Company’s carrying value of its unconsolidated investment, which resulted in the Company recording a gain on the distribution and a carrying value of zero as of December 31, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Operating Partnership and their consolidated subsidiaries. The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity (“VIE”) for which the Company is deemed to be the primary beneficiary or if the Company has the power to control an entity through majority voting interest or other arrangements. All significant intercompany balances are eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The determination of whether an entity is a VIE includes both a qualitative and quantitative analysis. The Company bases its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and relevant financial agreements and the quantitative analysis on the forecasted cash flow of the entity. The Company reassesses its initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events. A VIE must be consolidated only by its primary beneficiary, which is defined as the party who, along with its affiliates and agents, has both the: (i) power to direct the activities that most significantly impact the VIE’s economic performance; and (ii) obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of its investment; the obligation or likelihood for the Company or other interests to provide financial support; consideration of the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders and the similarity with and significance to the business activities of the Company and the other interests. The Company reassesses its determination of whether it is the primary beneficiary of a VIE each reporting period. Judgments related to these determinations include estimates about the current and future fair value and performance of investments held by these VIEs and general market conditions. The Company evaluates its investments and financings, including investments in unconsolidated ventures and securitization financing transactions to determine whether each investment or financing is a VIE. The Company analyzes new investments and financings, as well as reconsideration events for existing investments and financings, which vary depending on type of investment or financing. As of December 31, 2022, the Company has identified certain consolidated and unconsolidated VIEs. Assets of each of the VIEs, other than the Operating Partnership, may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company. Consolidated VIEs The most significant consolidated VIEs are the Operating Partnership and certain properties that have non-controlling interests. These entities are VIEs because the non-controlling interests do not have substantive kick-out or participating rights. The Operating Partnership consolidates certain properties that have non-controlling interests. Included in operating real estate, net on the Company’s consolidated balance sheet as of December 31, 2022 is $213.3 million related to such consolidated VIEs. Included in mortgage and other notes payable, net on the Company’s consolidated balance sheet as of December 31, 2022 is $173.2 million, collateralized by the real estate assets of the related consolidated VIEs. Unconsolidated VIEs |
Voting Interest Entities | Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Investments in Unconsolidated Ventures | Investments in Unconsolidated Ventures A non-controlling, unconsolidated ownership interest in an entity may be accounted for using the equity method or the Company may elect the fair value option. The Company will account for an investment under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does not have a controlling financial interest. Under the equity method, the investment is adjusted each period for capital contributions and distributions and its share of the entity’s net income (loss). Capital contributions, distributions and net income (loss) of such entities are recorded in accordance with the terms of the governing documents. An allocation of net income (loss) may differ from the stated ownership percentage interest in such entity as a result of preferred returns and allocation formulas, if any, as described in such governing documents. Equity method investments are recognized using a cost accumulation model, in which the investment is recognized based on the cost to the investor, which includes acquisition fees. The Company records as an expense certain acquisition costs and fees associated with consolidated investments deemed to be business combinations and capitalizes these costs for investments deemed to be acquisitions of an asset, including an equity method investment. |
Non-controlling Interests | Non-controlling Interests A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company. A non-controlling interest is required to be presented as a separate component of equity on the consolidated balance sheets and presented separately as net income (loss) and comprehensive income (loss) attributable to controlling and non-controlling interests. An allocation to a non-controlling interest may differ from the stated ownership percentage interest in such entity as a result of a preferred return and allocation formula, if any, as described in such governing documents. |
Estimates | Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions. Any estimates of the effects of the COVID-19 pandemic, inflation, rising interest rates, risk of recession and other economic conditions as reflected and/or discussed in these financial statements are based upon the Company's best estimates using information known to the Company as of the date of this Annual Report on Form 10-K. Such estimates may change and the impact of which could be material. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly-liquid investments with an original maturity date of three months or less to be cash equivalents. Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution. The Company mitigates credit risk by placing cash and cash equivalents with major financial institutions. To date, the Company has not experienced any losses on cash and cash equivalents. |
Operating Real Estate | Operating Real Estate Operating real estate is carried at historical cost less accumulated depreciation. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their useful life. Ordinary repairs and maintenance are expensed as incurred. Operating real estate is depreciated using the straight-line method over the estimated useful life of the assets, summarized as follows: Category: Term: Building 30 to 50 years Building improvements Lesser of the useful life or remaining life of the building Land improvements 9 to 15 years Tenant improvements Lesser of the useful life or remaining term of the lease Furniture, fixtures and equipment 5 to 14 years |
Lessee Accounting | Lessee Accounting A leasing arrangement, a right to control the use of an identified asset for a period of time in exchange for consideration, is classified by the lessee either as a finance lease, which represents a financed purchase of the leased asset, or as an operating lease. For leases with terms greater than 12 months, a lease asset and a lease liability are recognized on the balance sheet at commencement date based on the present value of lease payments over the lease term. Lease renewal or termination options are included in the lease asset and lease liability only if it is reasonably certain that the option to extend would be exercised or the option to terminate would not be exercised. As the implicit rate in most leases are not readily determinable, the Company’s incremental borrowing rate for each lease at commencement date is used to determine the present value of lease payments. Consideration is given to the Company’s recent debt financing transactions, as well as publicly available data for instruments with similar characteristics, adjusted for the respective lease term, when estimating incremental borrowing rates. Lease expense is recognized over the lease term based on an effective interest method for finance leases and on a straight-line basis for operating leases. Right of Use (“ROU”) - Finance Assets The Company has entered into finance leases for equipment which are included in operating real estate, net |
Deferred Costs | Deferred Costs Deferred costs primarily include deferred financing costs and deferred leasing costs. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. These costs are recorded against the carrying value of such financing and are amortized to interest expense over the term of the financing using the effective interest method. Unamortized deferred financing costs are expensed to realized gain (loss) on investments and other, when the associated borrowing is repaid before maturity. Costs incurred in seeking financing transactions which do not close are expensed in the period in which it is determined that the financing will not occur. Deferred lease costs consist of fees incurred to initiate and renew operating leases, which are amortized on a straight-line basis over the remaining lease term and are recorded to depreciation and amortization in the consolidated statements of operations. |
Identified Intangibles | Identified Intangibles The Company records acquired identified intangibles, such as the value of in-place leases and other intangibles, based on estimated fair value at the acquisition date. The value allocated to the identified intangibles is amortized over the remaining lease term. In-place leases are amortized into depreciation and amortization expense. Impairment analysis for identified intangible assets is performed in connection with the impairment assessment of the related operating real estate. An impairment establishes a new basis for the identified intangible asset and any impairment loss recognized is not subject to subsequent reversal. Refer to “—Impairment on Operating Real Estate and Investments in Unconsolidated Ventures” for additional information. |
Derivative Instruments | Derivative Instruments |
Revenue Recognition | Revenue Recognition Operating Real Estate Rental income from operating real estate is derived from leasing of space to operators and residents, including rent received from the Company’s net lease properties and rent, ancillary service fees and other related revenue earned from ILF residents. Rental income recognition commences when the operator takes legal possession of the leased space and the leased space is substantially ready for its intended use. The leases are for fixed terms of varying length and generally provide for rentals and expense reimbursements to be paid in monthly installments. Rental income from leases, which includes community and move-in fees, is recognized over the term of the respective leases. ILF resident agreements are generally short-term in nature and may allow for termination with 30 days’ notice. The Company also generates revenue from operating healthcare properties. Revenue related to operating healthcare properties includes resident room and care charges, ancillary fees and other resident service charges. Rent is charged and revenue is recognized when such services are provided, generally defined per the resident agreement as of the date upon which a resident occupies a room or uses the services. Resident agreements are generally short-term in nature and may allow for termination with 30 days’ notice. Revenue derived from our ALFs, MCFs and CCRCs is recorded in resident fee income in the consolidated statements of operations. Revenue from operators and residents is recognized at lease commencement only to the extent collection is expected to be probable. This assessment is based on several qualitative and quantitative factors, including and as appropriate, the payment history, ability to satisfy its lease obligations, the value of the underlying collateral or deposit, if any, and current economic conditions. If collection is assessed to not be probable thereafter, lease income recognized is limited to amounts collected, with the reversal of any revenue recognized to date in excess of amounts received. If collection is subsequently reassessed to be probable, revenue is adjusted to reflect the amount that would have been recognized had collection always been assessed as probable. The operator of the Company’s four net lease properties failed to remit contractual monthly rent obligations and the Company deemed it not probable that these obligations will be satisfied in the foreseeable future. For the year ended December 31, 2022, the Company recorded rental income to the extent rental payments were received. For the years ended December 31, 2022 and 2021, total property and other revenue includes variable lease revenue of $11.2 million and $13.1 million, respectively. Variable lease revenue includes ancillary services provided to operator/residents, as well as non-recurring services and fees at the Company’s operating facilities. The Company did not receive or recognize any grant income from the Provider Relief Fund administered by the U.S. Department of Health and Human Services during the year ended December 31, 2022. During the year ended December 31, 2021, the Company recognized $7.7 million of grant income. The grant income is classified as other income, net in the consolidated statements of operations. These grants are intended to mitigate the negative financial impact of the COVID-19 pandemic as reimbursements for expenses incurred to prevent, prepare for and respond to COVID-19 and lost revenues attributable to COVID-19. Provided that the Company attests to and complies with certain terms and conditions of the grants, the Company will not be required to repay these grants in the future. Real Estate Debt Investments Interest income is recognized on an accrual basis and any related premium, discount, origination costs and fees are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income in the consolidated statements of operations. The amortization of a premium or accretion of a discount is discontinued if such investment is reclassified to held for sale. The Company had one debt investment, which was repaid in full in August 2021. |
Impairment on Operating Real Estate and Investments in Unconsolidated Ventures | Impairment on Operating Real Estate and Investments in Unconsolidated Ventures At this time, it is difficult for the Company to assess and estimate the continuing impact of the COVID-19 pandemic, inflation, rising interest rates, risk of recession and other economic conditions. The future economic effects will depend on many factors beyond the Company’s control and knowledge. The resulting effect on impairment of the Company's real estate held for investment and held for sale and investments in unconsolidated ventures may materially differ from the Company's current expectations and further impairment charges may be recorded in future periods. Operating Real Estate The Company’s real estate portfolio is reviewed on a quarterly basis, or more frequently as necessary, to assess whether there are any indicators that the value of its operating real estate may be impaired or that its carrying value may not be recoverable. A property’s value is considered impaired if the Company’s estimate of the aggregate expected future undiscounted cash flow generated by the property is less than the carrying value. In conducting this review, the Company considers U.S. macroeconomic factors, real estate and healthcare sector conditions, together with asset specific and other factors. To the extent an impairment has occurred, the loss is measured as the excess of the carrying value of the property over the estimated fair value and recorded in impairment loss in the consolidated statements of operations. Real estate held for sale is stated at the lower of its carrying amount or estimated fair value less disposal cost, with any write-down to disposal cost recorded as an impairment loss. For any increase in fair value less disposal cost subsequent to classification as held for sale, the impairment may be reversed, but only up to the amount of cumulative loss previously recognized. The Company considered the potential impact of the lasting effects of the COVID-19 pandemic, inflation, rising interest rates, risk of recession and other economic conditions on the future net operating income of its healthcare real estate held for investment as an indicator of impairment. Fair values were estimated based upon the income capitalization approach, using net operating income for each property and applying indicative capitalization rates. |
Credit Losses on Receivables | Credit Losses on Receivables The current expected credit loss model, in estimating expected credit losses over the life of a financial instrument at the time of origination or acquisition, considers historical loss experiences, current conditions and the effects of reasonable and supportable expectations of changes in future macroeconomic conditions. The Company assesses the estimate of expected credit losses on a quarterly basis or more frequently as necessary. The Company considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company measures expected credit losses of receivables on a collective basis when similar risk characteristics exist. If the Company determines that a particular receivable does not share risk characteristics with its other receivables, the Company evaluates the receivable for expected credit losses on an individual basis. When developing an estimate of expected credit losses on receivables, the Company considers available information relevant to assessing the collectability of cash flows. This information may include internal information, external information, or a combination of both relating to past events, current conditions, and reasonable and supportable forecasts. The Company considers relevant qualitative and quantitative factors that relate to the environment in which the Company operates and are specific to the borrower. |
Acquisition Fees and Expenses | Acquisition Fees and Expenses The Company recorded an expense for certain acquisition costs and fees associated with transactions deemed to be business combinations in which it consolidated the asset and capitalized these costs for transactions deemed to be acquisitions of an asset, |
Equity-Based Compensation | Equity-Based Compensation The Company accounts for equity-based compensation awards using the fair value method, which requires an estimate of fair value of the award at the time of grant. All fixed equity-based awards to directors, which have no vesting conditions other than time of service, are amortized to compensation expense over the awards’ vesting period on a straight-line basis. Equity-based compensation is classified within general and administrative expenses in the consolidated statements of operations. |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT and to comply with the related provisions of the Internal Revenue Code beginning in its taxable year ended December 31, 2013. Accordingly, the Company will generally not be subject to U.S. federal income tax to the extent of its distributions to stockholders as long as certain asset, gross income and share ownership tests are met. To maintain its qualification as a REIT, the Company must annually distribute dividends equal to at least 90.0% of its REIT taxable income (with certain adjustments) to its stockholders and meet certain other requirements. The Company believes that all of the criteria to maintain the Company’s REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax and potential interest and penalties, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company’s accounting policy with respect to interest and penalties is to classify these amounts as a component of income tax expense, where applicable. The Company has assessed its tax positions for all open tax years, which include 2018 to 2022, and concluded there were no material uncertainties to be recognized. The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on its undistributed taxable income. The Company made a joint election to treat certain subsidiaries as taxable REIT subsidiaries (“TRS”) which may be subject to U.S. federal, state and local income taxes. In general, a TRS of the Company may perform services for managers/operators/residents of the Company, hold assets that the Company cannot hold directly and may engage in any real estate or non-real estate related business. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports consolidated comprehensive income (loss) in separate statements following the consolidated statements of operations. Comprehensive income (loss) is defined as the change in equity resulting from net income (loss) and other |
Foreign Currency | Foreign Currency Assets and liabilities denominated in a foreign currency for which the functional currency is a foreign currency are translated using the currency exchange rate in effect at the end of the period presented and the results of operations for such entities are translated into U.S. dollars using the average currency exchange rate in effect during the period. The resulting foreign currency translation adjustment is recorded as a component of accumulated OCI in the consolidated statements of equity. Assets and liabilities denominated in a foreign currency for which the functional currency is the U.S. dollar are remeasured using the currency exchange rate in effect at the end of the period presented and the results of operations for such entities are remeasured into U.S. dollars using the average currency exchange rate in effect during the period. As of December 31, 2022 and 2021, the Company had exposure to foreign currency through an investment in an unconsolidated venture, the effects of which are reflected as a component of accumulated OCI in the consolidated statements of equity and in equity in earnings (losses) in the consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2022 Disclosures by Business Entities about Government Assistance— In November 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10: Disclosures by Business Entities about Government Assistance. The guidance requires expanded disclosure for transactions involving the receipt of government assistance. Required disclosures include a description of the nature of transactions with government entities, accounting policies for such transactions and their impact to the Company’s consolidated financial statements. The Company adopted ASU No. 2021-10 on January 1, 2022, with no transitional impact upon adoption. Certain Leases with Variable Lease Payments —In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments . The guidance in ASU No. 2021-05 amends the lease classification requirements for the lessors under certain leases containing variable payments to align with practice under ASC 840. Under the guidance, the lessor should classify and account for a lease with variable lease payments that does not depend on a reference index or a rate as an operating lease if both of the following criteria are met: 1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in ASC No. 842-10-25-2 through 25-3; and 2) the lessor would have otherwise recognized a day-one loss. The amendments in ASU No. 2021-05 are effective for fiscal years beginning after December 15, 2021. The Company adopted ASU No. 2021-05 on January 1, 2022, with no transitional impact upon adoption. Future Application of Accounting Standards Reference Rate Reform— In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The guidance in ASU No. 2020-04 is optional, the election of which provides temporary relief for the accounting effects on contracts, hedging relationships and other transactions impacted by the transition from interbank offered rates (such as London Interbank Offered Rate (“LIBOR”)) to alternative reference rates (such as Secured Overnight Financing Rate (“SOFR”)). Modification of contractual terms to effect the reference rate reform transition on debt, leases, derivatives and other contracts is eligible for relief from modification accounting and accounted for as a continuation of the existing contract. ASU No. 2020-04 is effective upon issuance through December 31, 2022, and may be applied retrospectively to January 1, 2020. The Company may elect practical expedients or exceptions as applicable over time as reference rate reform activities occur. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope . The guidance amends the scope of the recent reference rate reform guidance issued in ASU No. 2020-04. New optional expedients allow derivative instruments impacted by changes in the interest rate used for margining, discounting, or contract price alignment to qualify for certain optional relief. The guidance was effective immediately and may be applied retrospectively to January 1, 2020. The Company may elect practical expedients or exceptions as applicable over time as reference rate reform activities occur. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The guidance defers the sunset date of ASU No. 2020-04 from December 31, 2022 to December 31, 2024. The |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported on the consolidated balance sheets to the total of such amounts as reported on the consolidated statements of cash flows (dollars in thousands): December 31, 2022 2021 2020 Cash and cash equivalents $ 103,926 $ 200,473 $ 65,995 Restricted cash 11,734 10,465 27,575 Total cash, cash equivalents and restricted cash $ 115,660 $ 210,938 $ 93,570 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported on the consolidated balance sheets to the total of such amounts as reported on the consolidated statements of cash flows (dollars in thousands): December 31, 2022 2021 2020 Cash and cash equivalents $ 103,926 $ 200,473 $ 65,995 Restricted cash 11,734 10,465 27,575 Total cash, cash equivalents and restricted cash $ 115,660 $ 210,938 $ 93,570 |
Schedule of Operating Real Estate Estimated Useful Life | Operating real estate is depreciated using the straight-line method over the estimated useful life of the assets, summarized as follows: Category: Term: Building 30 to 50 years Building improvements Lesser of the useful life or remaining life of the building Land improvements 9 to 15 years Tenant improvements Lesser of the useful life or remaining term of the lease Furniture, fixtures and equipment 5 to 14 years |
Schedule of Future Minimum Lease Payments for Capital Leases | The following table presents the future minimum lease payments under finance leases and the present value of the minimum lease payments, which are included in other liabilities Years Ending December 31: 2023 $ 97 2024 60 2025 29 2026 24 2027 18 Thereafter 10 Total minimum lease payments $ 238 Less: Amount representing interest (29) Present value of minimum lease payments $ 209 |
Schedule of Intangible Assets, Net | The following table presents intangible assets, net (dollars in thousands): December 31, 2022 December 31, 2021 In-place lease value $ 120,149 $ 120,149 Less: Accumulated amortization (117,896) (117,559) Intangible assets, net $ 2,253 $ 2,590 |
Schedule of Deferred Costs and Intangible Assets, Future Amortization Expense | The following table presents future amortization of in-place lease value (dollars in thousands): Years Ending December 31: 2023 $ 337 2024 337 2025 337 2026 337 2027 337 Thereafter 568 Total $ 2,253 |
Operating Real Estate (Tables)
Operating Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Operating Real Estate | The following table presents operating real estate, net (dollars in thousands): December 31, 2022 December 31, 2021 Land $ 121,518 $ 121,518 Land improvements 18,945 17,798 Buildings and improvements 957,924 965,630 Tenant improvements 372 — Construction in progress 6,736 8,141 Furniture, fixtures and equipment 91,058 84,813 Subtotal $ 1,196,553 $ 1,197,900 Less: Accumulated depreciation (263,551) (225,301) Operating real estate, net $ 933,002 $ 972,599 |
Schedule of Future Contractual Rent Obligations | The following table presents the future contractual rent obligations for the operator of the Company’s net lease properties over the next five years and thereafter as of December 31, 2022 (dollars in thousands): Years Ending December 31: (1) 2023 $ 10,919 2024 11,192 2025 11,472 2026 11,759 2027 12,053 Thereafter 21,792 Total $ 79,187 _______________________________________ (1) Excludes rental income from residents at ILFs that are subject to short-term leases. |
Investments in Unconsolidated_2
Investments in Unconsolidated Ventures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | All investments in unconsolidated ventures are accounted for under the equity method. The following table presents the Company’s investments in unconsolidated ventures (dollars in thousands): Carrying Value (1) Portfolio Acquisition Date Ownership December 31, 2022 December 31, 2021 Trilogy Dec-2015 23.2 % $ 128,884 $ 126,366 Diversified US/UK Dec-2014 14.3 % 28,442 80,766 Espresso (2) Jul-2015 36.7 % 18,019 — Eclipse May-2014 5.6 % 834 4,856 Subtotal $ 176,179 $ 211,988 Solstice (3) Jul-2017 20.0 % 323 321 Total $ 176,502 $ 212,309 _______________________________________ (1) Includes $1.3 million and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse and Trilogy joint ventures, respectively. (2) As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its investment in Espresso was reduced to zero in the fourth quarter of 2018. The Company recognized its proportionate share of earnings and losses of the Espresso joint venture through the carrying value of its mezzanine loan debt investment, which was originated to a subsidiary of the Espresso joint venture, through the time of its repayment in August 2021. During the year ended December 31, 2022, the Espresso joint venture recognized gains on sub-portfolio sales, which increased the Company’s carrying value in its investment as of December 31, 2022. (3) Represents investment in Solstice Senior Living, LLC (“Solstice”), the manager of the Winterfell portfolio. Solstice is a joint venture between affiliates of Integral Senior Living, LLC (“ISL”), a management company of ILF, ALF and MCF founded in 2000, which owns 80.0%, and the Company, which owns 20.0%. The following table presents the results of the Company’s investment in unconsolidated ventures (dollars in thousands): Year Ended December 31, 2022 2021 Portfolio Equity in Earnings (Losses) Cash Distribution Equity in Earnings (Losses) Cash Distribution Trilogy $ 11,652 $ 9,134 $ (2,891) $ 4,638 Diversified US/UK (1) (33,280) 2,433 (3,676) 4,257 Espresso (2) 72,427 54,654 19,619 5,500 Eclipse (3,176) 846 2,130 2,898 Envoy — 66 740 817 Subtotal $ 47,623 $ 67,133 $ 15,922 $ 18,110 Solstice 2 — (79) — Total $ 47,625 $ 67,133 $ 15,843 $ 18,110 _______________________________________ (1) The Diversified US/UK joint venture recognized equity in losses during the year ended December 31, 2022 as a result of declining operating performance at the joint venture’s net lease portfolios and the portfolio in the United Kingdom. In addition, the joint venture recorded impairment on its operating and net lease portfolios, of which our proportionate share was $22.9 million. (2) During the year ended December 31, 2022, the Espresso joint venture recognized net gains related to sub-portfolio sales, of which the Company’s proportionate share totaled $70.6 million. The Company was distributed its proportionate share of the net proceeds generated from the sales totaling $49.7 million. Summarized Financial Data The following table presents the Company’s unconsolidated ventures combined balance sheets as of December 31, 2022 and 2021 and combined statements of operations for the year ended December 31, 2022, 2021 and 2020 (dollars in thousands): December 31, 2022 December 31, 2021 Years Ended December 31, 2022 2021 2020 Assets Operating real estate, net $ 3,763,674 $ 4,051,899 Total revenues $ 1,644,894 $ 1,493,341 $ 1,562,284 Other assets 1,015,121 1,273,224 Net income (loss) $ (40,890) $ 59,321 $ (294,501) Total assets $ 4,778,795 $ 5,325,123 Liabilities and equity Total liabilities $ 4,022,608 $ 4,277,887 Equity 756,187 1,047,236 Total liabilities and equity $ 4,778,795 $ 5,325,123 SEC Rule 3-09 of Regulation S-X requires that a company include audited financial statements for equity method investees when such investees are individually significant for a company’s fiscal year. For the year ended December 31, 2022, the income from the Company’s investment in the Trilogy joint venture was determined to be significant. As a result, Trilogy’s audited financial statements for the year ended December 31, 2022 were included as Exhibit 99.1 in this Annual Report on Form 10-K. The below table indicates the Company’s investments for which the Former Sponsor is also an equity partner in the joint venture. Each investment was approved by the Company’s board of directors, including all of its independent directors. Refer to Note 4, “Investments in Unconsolidated Ventures” for further discussion of these investments: Portfolio Partner(s) Acquisition Date Ownership Eclipse NRF and Partner/ May 2014 5.6% Diversified US/UK NRF and Partner December 2014 14.3% |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings | The following table presents the Company’s mortgage and other notes payable (dollars in thousands): December 31, 2022 December 31, 2021 Recourse vs. Non-Recourse Initial Contractual Interest Rate (1) Principal Amount (2) Carrying Value (2) Principal (2) Carrying (2) Mortgage notes payable, net Aqua Portfolio Frisco, TX (3) Non-recourse Feb 2026 3.0% $ 26,000 $ 25,560 $ 26,000 $ 25,431 Milford, OH Non-recourse Sep 2026 LIBOR + 2.68% 18,336 18,126 18,661 18,388 Rochester Portfolio Rochester, NY Non-recourse Feb 2025 4.25% 18,206 18,165 18,911 18,853 Rochester, NY (4) Non-recourse Aug 2027 LIBOR + 2.34% 100,651 100,042 101,224 100,495 Rochester, NY Non-recourse Aug 2023 LIBOR + 2.90% 11,336 11,315 11,732 11,716 Arbors Portfolio (5) Various locations Non-recourse Feb 2025 3.99% 83,423 83,051 85,369 84,799 Winterfell Portfolio (6) Various locations Non-recourse Jun 2025 4.17% 596,408 588,306 608,810 597,460 Avamere Portfolio (7) Various locations Non-recourse Feb 2027 4.66% 67,995 67,683 69,144 68,755 Subtotal mortgage notes payable, net $ 922,355 $ 912,248 $ 939,851 $ 925,897 Other notes payable Oak Cottage Santa Barbara, CA (8) Non-recourse Repaid 6.00% $ — $ — $ 3,914 $ 3,914 Subtotal other notes payable, net $ — $ — $ 3,914 $ 3,914 Total mortgage and other notes payable, net $ 922,355 $ 912,248 $ 943,765 $ 929,811 _______________________________________ (1) Floating-rate borrowings total $130.3 million of principal outstanding and reference one-month LIBOR. (2) The difference between principal amount and carrying value of mortgage notes payable is attributable to deferred financing costs, net for all borrowings, other than the Winterfell portfolio which is attributable to below market debt intangibles. (3) The mortgage note carries a fixed interest rate of 3.0% through February 2024, followed by one-month adjusted SOFR, plus 2.80% through the initial maturity date of February 2026. (4) Composed of seven individual mortgage notes payable secured by seven healthcare real estate properties, cross-collateralized and subject to cross-default. (5) Composed of four individual mortgage notes payable secured by four healthcare real estate properties, cross-collateralized and subject to cross-default. (6) Composed of 32 individual mortgage notes payable secured by 32 healthcare real estate properties, cross-collateralized and subject to cross-default. (7) Composed of five individual mortgage notes payable secured by five healthcare real estate properties, cross-collateralized and subject to cross-default. |
Schedule of Principal on Borrowings based on Final Maturity | The following table presents future scheduled principal payments on mortgage and other notes payable based on initial maturity (dollars in thousands): Years Ending December 31: 2023 $ 30,256 2024 19,612 2025 669,466 2026 46,876 2027 156,145 Thereafter — Total $ 922,355 |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of the Fees and Reimbursements Incurred to the Advisor and Dealer Manager | The following table presents the fees and reimbursements incurred and paid to the Former Advisor (dollars in thousands): Type of Fee or Reimbursement Due to Related Party as of December 31, 2021 Year Ended December 31, 2022 Due to Related Party as of December 31, 2022 Financial Statement Location Incurred Paid Fees to Former Advisor Entities Asset management (1) Asset management fees-related party $ 937 $ 8,058 $ (8,995) (1) $ — Reimbursements to Former Advisor Entities Operating costs General and administrative expenses/ Transaction costs 6,401 9,258 (2) (15,190) 469 Total $ 7,338 $ 17,316 $ (24,185) $ 469 _______________________________________ (1) As a result of the termination of the advisory agreement on October 21, 2022, there was no outstanding asset management fees due to the Former Advisor as of December 31, 2022. Asset management fees paid through the year ended December 31, 2022 include a $0.1 million gain recognized on the settlement of the share-based payment. (2) Includes $0.1 million for costs incurred under the TSA during the year ended December 31, 2022. Type of Fee or Reimbursement Due to Related Party as of December 31, 2020 Year Ended December 31, 2021 Due to Related Party as of December 31, 2021 Financial Statement Location Incurred Paid Fees to Former Advisor Entities Asset management (1) Asset management fees-related party $ 923 $ 11,105 $ (11,091) (1) $ 937 Reimbursements to Former Advisor Entities Operating costs General and administrative expenses 7,395 14,035 (15,029) 6,401 Total $ 8,318 $ 25,140 $ (26,120) $ 7,338 _______________________________________ (1) Includes $10.6 million paid in shares of the Company’s common stock. |
Equity Method Investments | All investments in unconsolidated ventures are accounted for under the equity method. The following table presents the Company’s investments in unconsolidated ventures (dollars in thousands): Carrying Value (1) Portfolio Acquisition Date Ownership December 31, 2022 December 31, 2021 Trilogy Dec-2015 23.2 % $ 128,884 $ 126,366 Diversified US/UK Dec-2014 14.3 % 28,442 80,766 Espresso (2) Jul-2015 36.7 % 18,019 — Eclipse May-2014 5.6 % 834 4,856 Subtotal $ 176,179 $ 211,988 Solstice (3) Jul-2017 20.0 % 323 321 Total $ 176,502 $ 212,309 _______________________________________ (1) Includes $1.3 million and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse and Trilogy joint ventures, respectively. (2) As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its investment in Espresso was reduced to zero in the fourth quarter of 2018. The Company recognized its proportionate share of earnings and losses of the Espresso joint venture through the carrying value of its mezzanine loan debt investment, which was originated to a subsidiary of the Espresso joint venture, through the time of its repayment in August 2021. During the year ended December 31, 2022, the Espresso joint venture recognized gains on sub-portfolio sales, which increased the Company’s carrying value in its investment as of December 31, 2022. (3) Represents investment in Solstice Senior Living, LLC (“Solstice”), the manager of the Winterfell portfolio. Solstice is a joint venture between affiliates of Integral Senior Living, LLC (“ISL”), a management company of ILF, ALF and MCF founded in 2000, which owns 80.0%, and the Company, which owns 20.0%. The following table presents the results of the Company’s investment in unconsolidated ventures (dollars in thousands): Year Ended December 31, 2022 2021 Portfolio Equity in Earnings (Losses) Cash Distribution Equity in Earnings (Losses) Cash Distribution Trilogy $ 11,652 $ 9,134 $ (2,891) $ 4,638 Diversified US/UK (1) (33,280) 2,433 (3,676) 4,257 Espresso (2) 72,427 54,654 19,619 5,500 Eclipse (3,176) 846 2,130 2,898 Envoy — 66 740 817 Subtotal $ 47,623 $ 67,133 $ 15,922 $ 18,110 Solstice 2 — (79) — Total $ 47,625 $ 67,133 $ 15,843 $ 18,110 _______________________________________ (1) The Diversified US/UK joint venture recognized equity in losses during the year ended December 31, 2022 as a result of declining operating performance at the joint venture’s net lease portfolios and the portfolio in the United Kingdom. In addition, the joint venture recorded impairment on its operating and net lease portfolios, of which our proportionate share was $22.9 million. (2) During the year ended December 31, 2022, the Espresso joint venture recognized net gains related to sub-portfolio sales, of which the Company’s proportionate share totaled $70.6 million. The Company was distributed its proportionate share of the net proceeds generated from the sales totaling $49.7 million. Summarized Financial Data The following table presents the Company’s unconsolidated ventures combined balance sheets as of December 31, 2022 and 2021 and combined statements of operations for the year ended December 31, 2022, 2021 and 2020 (dollars in thousands): December 31, 2022 December 31, 2021 Years Ended December 31, 2022 2021 2020 Assets Operating real estate, net $ 3,763,674 $ 4,051,899 Total revenues $ 1,644,894 $ 1,493,341 $ 1,562,284 Other assets 1,015,121 1,273,224 Net income (loss) $ (40,890) $ 59,321 $ (294,501) Total assets $ 4,778,795 $ 5,325,123 Liabilities and equity Total liabilities $ 4,022,608 $ 4,277,887 Equity 756,187 1,047,236 Total liabilities and equity $ 4,778,795 $ 5,325,123 SEC Rule 3-09 of Regulation S-X requires that a company include audited financial statements for equity method investees when such investees are individually significant for a company’s fiscal year. For the year ended December 31, 2022, the income from the Company’s investment in the Trilogy joint venture was determined to be significant. As a result, Trilogy’s audited financial statements for the year ended December 31, 2022 were included as Exhibit 99.1 in this Annual Report on Form 10-K. The below table indicates the Company’s investments for which the Former Sponsor is also an equity partner in the joint venture. Each investment was approved by the Company’s board of directors, including all of its independent directors. Refer to Note 4, “Investments in Unconsolidated Ventures” for further discussion of these investments: Portfolio Partner(s) Acquisition Date Ownership Eclipse NRF and Partner/ May 2014 5.6% Diversified US/UK NRF and Partner December 2014 14.3% |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Principal Amount, Carrying Value and Fair Value of Certain Financial Assets and Liabilities | The following table presents financial assets that were accounted for at fair value on a recurring basis as of December 31, 2022 and 2021 by level within the fair value hierarchy (dollars in thousands): December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets: Derivative assets - interest rate caps $ — $ 652 $ — $ — $ 105 $ — The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities (dollars in thousands): December 31, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Financial liabilities: (1) Mortgage and other notes payable, net $ 922,355 $ 912,248 $ 882,754 $ 943,765 $ 929,811 $ 889,485 _______________________________________ (1) The fair value of other financial instruments not included in this table is estimated to approximate their carrying value. The following table summarizes the fair value, measured at the time of impairment, of Level 3 assets which have been measured at fair value on a nonrecurring basis during the periods presented and the associated impairment losses (dollars in thousands): Years Ended December 31, 2022 2021 2020 Fair Value Impairment Losses Fair Value Impairment Losses Fair Value Impairment Losses Operating real estate, net (1) $ 80,931 $ 30,900 $ 11,793 $ 5,386 $ 234,650 $ 164,215 Investments in unconsolidated ventures $ 28,442 $ 13,419 — — — — Assets held for sale — — — — 5,000 1,753 _______________________________________ |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting | The following tables present segment reporting (dollars in thousands): Direct Investments Year Ended December 31, 2022 Net Lease Operating Unconsolidated Investments Debt Investment Corporate (1) Total Property and other revenues $ 1,596 $ 182,519 $ — $ — $ 1,021 $ 185,136 Interest income on debt investments — — — — — — Property operating expenses (39) (137,539) — — — (137,578) Interest expense (3,609) (39,669) — — — (43,278) Transaction costs — — — — (1,569) (1,569) Asset management fees - related party — — — — (8,058) (8,058) General and administrative expenses — (31) — — (13,907) (13,938) Depreciation and amortization (3,329) (35,258) — — — (38,587) Impairment loss (18,500) (13,380) (13,419) — — (45,299) Other income, net — 77 — — — 77 Realized gain (loss) on investments and other 88 499 310 — 132 1,029 Equity in earnings (losses) of unconsolidated ventures — — 47,625 — — 47,625 Income tax expense — (61) — — — (61) Net income (loss) $ (23,793) $ (42,843) $ 34,516 $ — $ (22,381) $ (54,501) _______________________________________ (1) Includes unallocated asset management fee-related party and general and administrative expenses. Direct Investments Year Ended December 31, 2021 Net Lease Operating Unconsolidated Investments Debt Investment Corporate (1) Total Property and other revenues $ 14,708 $ 228,569 $ — $ — $ — $ 243,277 Interest income on debt investments — — — 4,667 — 4,667 Property operating expenses (29) (177,907) — — — (177,936) Interest expense (10,900) (49,979) — — (741) (61,620) Transaction costs — (54) — — — (54) Asset management fees - related party — — — — (11,105) (11,105) General and administrative expenses (192) (227) — — (12,272) (12,691) Depreciation and amortization (11,748) (43,088) — — — (54,836) Impairment loss (786) (4,600) — — — (5,386) Other income, net — 7,278 — — — 7,278 Realized gain (loss) on investments and other 10,601 64,618 4,263 — (5) 79,477 Equity in earnings (losses) of unconsolidated ventures — — 15,843 — — 15,843 Income tax benefit (expense) — (99) — — — (99) Net income (loss) $ 1,654 $ 24,511 $ 20,106 $ 4,667 $ (24,123) $ 26,815 _______________________________________ (1) Includes unallocated asset management fee-related party and general and administrative expenses. Direct Investments Year Ended December 31, 2020 Net Lease Operating Unconsolidated Investments Debt Corporate (1) Total Property and other revenues $ 32,899 $ 242,250 $ — $ — $ 199 $ 275,348 Interest income on debt investments — — — 7,674 — 7,674 Property operating expenses (13) (184,165) — — — (184,178) Interest expense (11,832) (53,210) — — (949) (65,991) Transaction costs (58) (7) — — — (65) Asset management fees - related party — — — — (17,170) (17,170) General and administrative expenses (804) (296) — (19) (15,386) (16,505) Depreciation and amortization (14,940) (50,066) — — — (65,006) Impairment loss (722) (165,246) — — — (165,968) Other income, net — 1,840 — — — 1,840 Realized gain (loss) on investments and other — (13) — — 315 302 Equity in earnings (losses) of unconsolidated ventures — — (34,466) — — (34,466) Income tax benefit (expense) — (53) — — — (53) Net income (loss) $ 4,530 $ (208,966) $ (34,466) $ 7,655 $ (32,991) $ (264,238) _______________________________________ (1) Includes unallocated asset management fee-related party and general and administrative expenses. |
Summary of Assets by Segment | The following table presents total assets by segment (dollars in thousands): Direct Investments Total Assets: Net Lease Operating Unconsolidated Investments Debt Investment Corporate (1) Total December 31, 2022 $ 83,435 $ 884,137 $ 176,502 $ — $ 93,761 $ 1,237,835 December 31, 2021 104,809 908,517 212,309 — 187,238 1,412,873 ______________________________________ |
Schedule of Real Estate Properties | The following table presents the operators and managers of the Company’s properties, excluding properties owned through unconsolidated joint ventures (dollars in thousands): As of December 31, 2022 Year Ended December 31, 2022 Operator / Manager Properties Under Management Units Under Management (1) Property and Other Revenues (2) % of Total Property and Other Revenues Solstice Senior Living (3) 32 3,993 $ 112,553 60.8 % Watermark Retirement Communities 14 1,782 45,276 24.3 % Avamere Health Services 5 453 19,778 10.7 % Integral Senior Living 1 40 4,913 2.7 % Arcadia Management (4) 4 572 1,597 0.9 % Other (5) — — 1,019 0.6 % Total 56 6,840 $ 185,136 100.0 % ______________________________________ (1) Represents rooms for ALFs and ILFs and MCFs, based on predominant type. (2) Includes rental income received from the Company’s net lease properties as well as rental income, ancillary service fees and other related revenue earned from ILF residents and resident fee income derived from the Company’s ALFs and MCFs, which includes resident room and care charges, ancillary fees and other resident service charges. (3) Solstice is a joint venture of which affiliates of ISL own 80%. (4) During the year ended December 31, 2022, the Company recorded rental income to the extent payments were received. (5) Consists primarily of interest income earned on corporate-level cash accounts. |
Business and Organization (Deta
Business and Organization (Details) - USD ($) | 12 Months Ended | 95 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Net proceeds from issuance of common stock | $ 2,000,000,000 | ||
Dividend Reinvestment Plan | |||
Class of Stock [Line Items] | |||
Net proceeds from issuance of common stock | $ 232,600,000 | ||
Primary Beneficiary | |||
Class of Stock [Line Items] | |||
Limited partnership interest in operating partnership | 99.99% | ||
Advisor | |||
Class of Stock [Line Items] | |||
Non-controlling interest investment in operating partnership | $ 1,000 | ||
Special Unit Holder | |||
Class of Stock [Line Items] | |||
Non-controlling interest investment in operating partnership | $ 1,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) day portfolio | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Variable Interest Entities | |||
Operating real estate, net | $ 933,002 | $ 972,599 | |
Mortgage and other notes payable, net | 912,248 | 929,811 | |
Investments in unconsolidated ventures | $ 176,502 | 212,309 | |
Finance Lease Liability | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating real estate, net | ||
Finance leases for equipment | $ 500 | ||
Payments of finance lease obligations | $ 500 | 700 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||
Weighted average interest rate (percent) | 7.50% | ||
Remaining lease term (years) | 3 years 4 months 24 days | ||
Identified Intangibles | |||
Number of triple net lease portfolios | portfolio | 4 | ||
Amortization expense for in-place leases and deferred costs | $ 300 | 1,400 | |
Derivative | |||
Derivative, gain (loss) on derivative, net | $ (500) | $ 0 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized gain (loss) on investments and other | Realized gain (loss) on investments and other | |
Revenue Recognition | |||
Days notice required for lease termination | day | 30 | ||
Variable lease revenues | $ 11,200 | $ 13,100 | |
Asset Impairment Charges | |||
Impairment loss | 31,900 | ||
Impairment loss | 45,299 | 5,386 | $ 165,968 |
Financing Receivable, after Allowance for Credit Loss | |||
Allowance for credit losses on receivables | 0 | ||
Income Taxes | |||
Deferred tax asset | 15,300 | ||
Income tax expense | 61 | 99 | $ 53 |
Diversified US/UK | |||
Variable Interest Entities | |||
Investments in unconsolidated ventures | 28,442 | 80,766 | |
Asset Impairment Charges | |||
Impairment loss | 13,400 | ||
Interest Rate Cap | |||
Derivative | |||
Derivative asset | 700 | 100 | |
Arbors | |||
Asset Impairment Charges | |||
Impairment loss | 18,500 | ||
Winterfell | |||
Asset Impairment Charges | |||
Impairment loss | 8,500 | 4,600 | |
Impairment loss on property damages | 800 | ||
Rochester, NY | |||
Asset Impairment Charges | |||
Impairment loss | 3,900 | ||
Smyrna | |||
Asset Impairment Charges | |||
Impairment loss | 800 | ||
Avamere Portfolio | |||
Asset Impairment Charges | |||
Impairment loss on property damages | 200 | ||
Other Income | |||
Revenue Recognition | |||
Grant income | 0 | 7,700 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entities | |||
Operating real estate, net | 213,300 | ||
Mortgage and other notes payable, net | 173,200 | ||
Corporate Joint Venture | |||
Investments in Unconsolidated Ventures | |||
Impairment recognized | $ (25,100) | $ (1,800) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 103,926 | $ 200,473 | $ 65,995 | |
Restricted cash | 11,734 | 10,465 | 27,575 | |
Total cash, cash equivalents and restricted cash | $ 115,660 | $ 210,938 | $ 93,570 | $ 58,820 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 30 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 50 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 9 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 15 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 14 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Future Minimum Lease Payments from Capital Leases (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
2023 | $ 97 |
2024 | 60 |
2025 | 29 |
2026 | 24 |
2027 | 18 |
Thereafter | 10 |
Total minimum lease payments | 238 |
Less: Amount representing interest | (29) |
Present value of minimum lease payments | $ 209 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Deferred Costs and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (117,896) | $ (117,559) |
Intangible assets, net | 2,253 | 2,590 |
In-place lease value | ||
Finite-Lived Intangible Assets [Line Items] | ||
In-place lease value | $ 120,149 | $ 120,149 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
2023 | $ 337 |
2024 | 337 |
2025 | 337 |
2026 | 337 |
2027 | 337 |
Thereafter | 568 |
Total | $ 2,253 |
Operating Real Estate - Identif
Operating Real Estate - Identifiable Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 121,518 | $ 121,518 |
Land improvements | 18,945 | 17,798 |
Buildings and improvements | 957,924 | 965,630 |
Tenant improvements | 372 | 0 |
Construction in progress | 6,736 | 8,141 |
Furniture, fixtures and equipment | 91,058 | 84,813 |
Subtotal | 1,196,553 | 1,197,900 |
Less: Accumulated depreciation | (263,551) | (225,301) |
Operating real estate, net | $ 933,002 | $ 972,599 |
Operating Real Estate - Narrati
Operating Real Estate - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate [Line Items] | |||
Depreciation | $ 38,300 | $ 53,500 | $ 63,100 |
Impairment loss | 45,299 | 5,386 | $ 165,968 |
Building and Building Improvements | |||
Real Estate [Line Items] | |||
Accumulated impairment | $ 181,500 | $ 149,700 |
Operating Real Estate - Future
Operating Real Estate - Future Contractual Rent Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Real Estate [Abstract] | |
2023 | $ 10,919 |
2024 | 11,192 |
2025 | 11,472 |
2026 | 11,759 |
2027 | 12,053 |
Thereafter | 21,792 |
Total | $ 79,187 |
Investments in Unconsolidated_3
Investments in Unconsolidated Ventures - Changes in Carrying Value (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | $ 176,502,000 | $ 212,309,000 | ||
Equity in earnings (losses) of unconsolidated ventures | 47,625,000 | 15,843,000 | $ (34,466,000) | |
Cash Distribution | 67,133,000 | 18,110,000 | ||
Eclipse, Envoy, Diversified US/UK, Espresso, Trilogy | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | 176,179,000 | 211,988,000 | ||
Equity in earnings (losses) of unconsolidated ventures | 47,623,000 | 15,922,000 | ||
Cash Distribution | 67,133,000 | 18,110,000 | ||
Trilogy | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capitalized acquisition costs | 9,800,000 | 9,800,000 | ||
Carrying value | $ 128,884,000 | 126,366,000 | ||
Ownership interest (as a percentage) | 23.20% | |||
Equity in earnings (losses) of unconsolidated ventures | $ 11,652,000 | (2,891,000) | ||
Cash Distribution | 9,134,000 | 4,638,000 | ||
Diversified US/UK | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capitalized acquisition costs | 28,400,000 | |||
Carrying value | $ 28,442,000 | 80,766,000 | ||
Ownership interest (as a percentage) | 14.30% | |||
Equity in earnings (losses) of unconsolidated ventures | $ (33,280,000) | (3,676,000) | ||
Cash Distribution | 2,433,000 | 4,257,000 | ||
Gains related to sub portfolio sales | (22,900,000) | |||
Espresso | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | $ 18,019,000 | 0 | $ 0 | |
Ownership interest (as a percentage) | 36.70% | |||
Equity in earnings (losses) of unconsolidated ventures | $ 72,427,000 | 19,619,000 | ||
Cash Distribution | 54,654,000 | 5,500,000 | ||
Gains related to sub portfolio sales | 70,600,000 | |||
Proceeds from sale of building | 49,700,000 | |||
Eclipse | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capitalized acquisition costs | 1,300,000 | 1,300,000 | ||
Carrying value | $ 834,000 | 4,856,000 | ||
Ownership interest (as a percentage) | 5.60% | |||
Equity in earnings (losses) of unconsolidated ventures | $ (3,176,000) | 2,130,000 | ||
Cash Distribution | 846,000 | 2,898,000 | ||
Envoy | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings (losses) of unconsolidated ventures | 0 | 740,000 | ||
Cash Distribution | 66,000 | 817,000 | ||
Solstice | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | $ 323,000 | 321,000 | ||
Ownership interest (as a percentage) | 20% | |||
Equity in earnings (losses) of unconsolidated ventures | $ 2,000 | (79,000) | ||
Cash Distribution | $ 0 | $ 0 | ||
Mezzanine loans | Espresso | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | $ 0 | |||
Solstice | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, ownership percentage by parent (as a percentage) | 80% | |||
Winterfell | Solstice | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percentage) | 20% | |||
Winterfell | Solstice | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, ownership percentage by parent (as a percentage) | 80% |
Investments in Unconsolidated_4
Investments in Unconsolidated Ventures - Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Operating real estate, net | $ 933,002 | $ 972,599 | |||
Other assets | 7,603 | 10,771 | |||
Total assets | [1] | 1,237,835 | 1,412,873 | ||
Total liabilities | [1] | 936,763 | 966,055 | ||
Equity | 301,072 | 446,818 | $ 412,062 | $ 667,504 | |
Total liabilities and equity | 1,237,835 | 1,412,873 | |||
Total revenues | 185,136 | 243,277 | 275,348 | ||
Net income (loss) | (54,501) | 26,815 | (264,238) | ||
Diversified US/UK and Trilogy | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating real estate, net | 3,763,674 | 4,051,899 | |||
Other assets | 1,015,121 | 1,273,224 | |||
Total assets | 4,778,795 | 5,325,123 | |||
Total liabilities | 4,022,608 | 4,277,887 | |||
Equity | 756,187 | 1,047,236 | |||
Total liabilities and equity | 4,778,795 | 5,325,123 | |||
Total revenues | 1,644,894 | 1,493,341 | 1,562,284 | ||
Net income (loss) | $ (40,890) | $ 59,321 | $ (294,501) | ||
[1]Represents the consolidated assets and liabilities of NorthStar Healthcare Income Operating Partnership, LP (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which NorthStar Healthcare Income, Inc. (together with its consolidated subsidiaries, the “Company”) is the sole general partner and owns approximately 99.99%. As of December 31, 2022, the Operating Partnership includes $220.9 million and $178.8 million of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. Refer to Note 2, “Summary of Significant Accounting Policies.” |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) debt_instrument property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||
Carrying Value | $ 922,355 | |||
Repayments of notes payable | $ 21,212 | $ 517,618 | $ 20,250 | |
Winterfell | ||||
Debt Instrument [Line Items] | ||||
Number of healthcare real estate properties | property | 32 | |||
Mortgages and other notes payable | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 922,355 | 943,765 | ||
Carrying Value | 912,248 | 929,811 | ||
Mortgage notes payable, net | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 922,355 | 943,765 | ||
Mortgage notes payable, net | Rochester, NY | ||||
Debt Instrument [Line Items] | ||||
Number of debt instruments | debt_instrument | 7 | |||
Number of healthcare real estate properties | property | 7 | |||
Mortgage notes payable, net | Arbors | ||||
Debt Instrument [Line Items] | ||||
Number of debt instruments | debt_instrument | 4 | |||
Number of healthcare real estate properties | property | 4 | |||
Mortgage notes payable, net | Winterfell | ||||
Debt Instrument [Line Items] | ||||
Number of debt instruments | debt_instrument | 32 | |||
Mortgage notes payable, net | Avamere Portfolio | ||||
Debt Instrument [Line Items] | ||||
Number of debt instruments | debt_instrument | 5 | |||
Number of healthcare real estate properties | property | 5 | |||
Mortgage notes payable, net | Frisco, TX Non-recourse | Frisco, TX | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3% | |||
Principal Amount | $ 26,000 | 26,000 | ||
Carrying Value | $ 25,560 | 25,431 | ||
Mortgage notes payable, net | Frisco, TX Non-recourse | Frisco, TX | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 2.80% | |||
Mortgage notes payable, net | Milford, OH Non-recourse | Milford, OH | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 18,336 | 18,661 | ||
Carrying Value | $ 18,126 | 18,388 | ||
Mortgage notes payable, net | Milford, OH Non-recourse | Milford, OH | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 2.68% | |||
Mortgage notes payable, net | Rochester, NY Non-recourse, February 2025 | Rochester, NY | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 4.25% | |||
Principal Amount | $ 18,206 | 18,911 | ||
Carrying Value | 18,165 | 18,853 | ||
Mortgage notes payable, net | Rochester, NY Non-recourse, August 2027 | Rochester, NY | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 100,651 | 101,224 | ||
Carrying Value | $ 100,042 | 100,495 | ||
Mortgage notes payable, net | Rochester, NY Non-recourse, August 2027 | Rochester, NY | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 2.34% | |||
Mortgage notes payable, net | Rochester NY Nonrecourse August 2022 | Rochester, NY | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 11,336 | 11,732 | ||
Carrying Value | $ 11,315 | 11,716 | ||
Mortgage notes payable, net | Rochester NY Nonrecourse August 2022 | Rochester, NY | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 2.90% | |||
Mortgage notes payable, net | Non-Recourse | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 922,355 | 939,851 | ||
Carrying Value | $ 912,248 | 925,897 | ||
Mortgage notes payable, net | Non-Recourse | Arbors | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3.99% | |||
Principal Amount | $ 83,423 | 85,369 | ||
Carrying Value | $ 83,051 | 84,799 | ||
Mortgage notes payable, net | Non-Recourse | Winterfell | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 4.17% | |||
Principal Amount | $ 596,408 | 608,810 | ||
Carrying Value | $ 588,306 | 597,460 | ||
Mortgage notes payable, net | Non-Recourse | Avamere Portfolio | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 4.66% | |||
Principal Amount | $ 67,995 | 69,144 | ||
Carrying Value | 67,683 | 68,755 | ||
Mortgage notes payable, net | One-Month LIBOR | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 130,300 | |||
Other notes payable | Non-Recourse | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 0 | 3,914 | ||
Carrying Value | $ 0 | 3,914 | ||
Other notes payable | Non-Recourse | Oak Cottage | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 6% | |||
Principal Amount | $ 0 | 3,914 | ||
Carrying Value | $ 0 | $ 3,914 | ||
Repayments of notes payable | $ 3,700 |
Borrowings - Maturity Schedule
Borrowings - Maturity Schedule (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 30,256 |
2024 | 19,612 |
2025 | 669,466 |
2026 | 46,876 |
2027 | 156,145 |
Thereafter | 0 |
Total | $ 922,355 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - Digital Bridge - Line of Credit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Oct. 21, 2022 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 35 | $ 35 |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 3.50% |
Related Party Arrangements - Fe
Related Party Arrangements - Fees to Advisor (Narrative) (Details) - Advisor - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2018 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Monthly asset management fees as a percentage of investment amount | 1.50% | |
Threshold for asset management fee deduction | $ 75 | |
Asset Management Fees | ||
Related Party Transaction [Line Items] | ||
Monthly asset management fees as a percentage of investment amount | 0.125% |
Related Party Arrangements - Re
Related Party Arrangements - Reimbursements to Advisor (Narrative) (Details) - quarter | 12 Months Ended | |
Oct. 21, 2022 | Dec. 31, 2022 | |
Related Party Transition Services Agreement | ||
Related Party Transaction [Line Items] | ||
Related party transaction, term of agreement | 6 months | |
Advisor | Operating Costs | ||
Related Party Transaction [Line Items] | ||
Number of preceding fiscal quarters | 4 | |
Percentage of average invested assets reimbursable as operating costs | 2% | |
Advisor | Operating Costs | Maximum | ||
Related Party Transaction [Line Items] | ||
Percentage of net income, without reduction for any additions to reserves for depreciation, loan losses or other similar non-cash reserves and excluding any gain from the sale of the company's assets | 25% |
Related Party Arrangements - Su
Related Party Arrangements - Summary of Fees and Reimbursements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction, Due to Related Parties [Roll Forward] | |||
Due to related party, beginning balance | $ 7,338 | $ 8,318 | |
Incurred | 17,316 | 25,140 | |
Paid | (24,185) | (26,120) | |
Due to related party, ending balance | 469 | 7,338 | $ 8,318 |
Asset management fees - related party | 8,058 | 11,105 | 17,170 |
Issuance of common stock as payment for asset management fees | 8,900 | 10,600 | |
Operating costs | |||
Related Party Transaction, Due to Related Parties [Roll Forward] | |||
Asset management fees - related party | 100 | ||
Asset management fees-related party | |||
Related Party Transaction, Due to Related Parties [Roll Forward] | |||
Gain recognized on settlement of share-based payment | 100 | ||
Advisor | Asset management | Asset management fees-related party | |||
Related Party Transaction, Due to Related Parties [Roll Forward] | |||
Due to related party, beginning balance | 937 | 923 | |
Incurred | 8,058 | 11,105 | |
Paid | (8,995) | (11,091) | |
Due to related party, ending balance | 0 | 937 | 923 |
Advisor | Operating costs | General and administrative expenses | |||
Related Party Transaction, Due to Related Parties [Roll Forward] | |||
Due to related party, beginning balance | 6,401 | 7,395 | |
Incurred | 9,258 | 14,035 | |
Paid | (15,190) | (15,029) | |
Due to related party, ending balance | $ 469 | $ 6,401 | $ 7,395 |
Related Party Arrangements - Is
Related Party Arrangements - Issuance of Common Stock to the Advisor (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Share-based payment of advisor assets management fees (in shares) | 2,300,000 | |
Issuance of common stock as payment for asset management fees | $ 8,900 | $ 10,600 |
Common stock (in shares) | 195,421,665 | 193,120,940 |
Common stock | $ 1,954 | $ 1,930 |
Former Advisor, Former Sponsor, and Affiliates | Northstar Healthcare Income, Inc. | ||
Related Party Transaction [Line Items] | ||
Ownership percentage by noncontrolling owners | 4.97% | |
The Advisor, the Sponsor, and affiliates | ||
Related Party Transaction [Line Items] | ||
Common stock (in shares) | 9,700,000 | |
Common stock | $ 28,400 |
Related Party Arrangements - In
Related Party Arrangements - Incentive Fee (Narrative) (Details) - Advisor - Incentive Fee | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |
Incentive fee distributions, percent of net cash flows | 15% |
Incentive fee distributions, minimum non-compounded annual pre-tax return on invested capital | 6.75% |
Related Party Arrangements - _2
Related Party Arrangements - Investments in Joint Ventures (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Solstice | |
Related Party Transaction [Line Items] | |
Ownership interest (as a percentage) | 20% |
Solstice | |
Related Party Transaction [Line Items] | |
Noncontrolling interest, ownership percentage by parent (as a percentage) | 80% |
Winterfell | Solstice | |
Related Party Transaction [Line Items] | |
Ownership interest (as a percentage) | 20% |
Winterfell | Solstice | |
Related Party Transaction [Line Items] | |
Noncontrolling interest, ownership percentage by parent (as a percentage) | 80% |
Property management fee expense paid to joint venture | $ 5.6 |
Related Party Arrangements - Sc
Related Party Arrangements - Schedule of Joint Ventures (Details) | Dec. 31, 2022 |
Eclipse | |
Related Party Transaction [Line Items] | |
Ownership interest (as a percentage) | 5.60% |
Diversified US/UK | |
Related Party Transaction [Line Items] | |
Ownership interest (as a percentage) | 14.30% |
NRF and Partner/ Formation Capital, LLC | Eclipse | |
Related Party Transaction [Line Items] | |
Ownership interest (as a percentage) | 5.60% |
NRF and Partner | Diversified US/UK | |
Related Party Transaction [Line Items] | |
Ownership interest (as a percentage) | 14.30% |
Related Party Arrangements - Li
Related Party Arrangements - Line of Credit - Related Party (Narrative) (Details) - Line of Credit - Digital Bridge - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Oct. 21, 2022 | |
Related Party Transaction [Line Items] | ||
Maximum borrowing capacity | $ 35 | $ 35 |
LIBOR | ||
Related Party Transaction [Line Items] | ||
Basis spread on variable interest rate | 3.50% |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity-based compensation | |||
Number of shares granted to independent directors (in shares) | 49,872 | 66,840 | |
Equity-based compensation expense | $ 206,917 | $ 230,083 | $ 168,917 |
Unrecognized equity-based compensation | $ 211,250 | $ 223,167 | |
Restricted stock | |||
Equity-based compensation | |||
Number of shares authorized | 2,000,000 | ||
Restricted common shares grant vesting period | 2 years | ||
Number of vested restricted stock (in shares) | 4,800 | ||
Restricted Stock Units (RSUs) | |||
Equity-based compensation | |||
Restricted common shares grant vesting period | 2 years | ||
Unvested shares (in shares) | 54,114 | 50,130 | |
Independent Directors | Restricted stock | |||
Equity-based compensation | |||
Number of shares granted to independent directors (in shares) | 159,932 | ||
Aggregate value for restricted common shares granted to independent directors | $ 1,300,000 | ||
Independent Directors | Restricted Stock Units (RSUs) | |||
Equity-based compensation | |||
Number of shares granted to independent directors (in shares) | 116,712 | ||
Aggregate value for restricted common shares granted to independent directors | $ 500,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - USD ($) shares in Millions, $ in Billions | 1 Months Ended | 95 Months Ended |
Jan. 19, 2016 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||
Value of common stock issued | $ 2 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued (in shares) | 173.4 | |
Value of common stock issued | $ 1.7 |
Stockholders' Equity - Distribu
Stockholders' Equity - Distribution Reinvestment Plan (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | 84 Months Ended | 95 Months Ended |
Jan. 19, 2016 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||||
Value of common stock issued | $ 2,000,000,000 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares issued (in shares) | 173.4 | |||
Value of common stock issued | $ 1,700,000,000 | |||
Dividend Reinvestment Plan | ||||
Class of Stock [Line Items] | ||||
Selling commissions or dealer manager fees paid | $ 0 | |||
Notice period served by board of directors to amend or terminate DRP (in days) | 10 days | |||
Dividend Reinvestment Plan | Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares issued (in shares) | 25.7 | |||
Value of common stock issued | $ 232,600,000 |
Stockholders' Equity - Distri_2
Stockholders' Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | May 02, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Special distribution (dollars per share) | $ 0.50 | |
Dividends payable | $ 97.1 | |
Operating loss carryforwards | $ 226.5 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Equity [Abstract] | |
Shares repurchased during period (in shares) | 0 |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |||
Net income (loss) attributable to non-controlling interests | $ (401) | $ 1,748 | $ (2,780) |
Fair Value - Schedule of the Pr
Fair Value - Schedule of the Principal Amount, Carrying Value and Fair Value of Certain Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities | ||
Carrying Value | $ 912,248 | $ 929,811 |
Interest Rate Cap | ||
Financial Liabilities | ||
Derivative asset | 700 | 100 |
Level 1 | Interest Rate Cap | ||
Financial Liabilities | ||
Derivative asset | 0 | 0 |
Level 2 | Interest Rate Cap | ||
Financial Liabilities | ||
Derivative asset | 652 | 105 |
Level 3 | Interest Rate Cap | ||
Financial Liabilities | ||
Derivative asset | 0 | 0 |
Mortgage and other notes payable, net | ||
Financial Liabilities | ||
Principal Amount | 922,355 | 943,765 |
Carrying Value | 912,248 | 929,811 |
Fair Value | $ 882,754 | $ 889,485 |
Fair Value - Nonrecurring Fair
Fair Value - Nonrecurring Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating real estate, net | $ 933,002 | $ 972,599 | |
Impairment loss | 31,900 | ||
Tangible asset impairment charges | 1,000 | ||
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Operating real estate, net | 80,931 | 11,793 | $ 234,650 |
Investments in unconsolidated ventures | 28,442 | 0 | 0 |
Assets held for sale | 0 | 0 | 5,000 |
Nonrecurring | Level 3 | Operating Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment loss | 30,900 | 5,386 | 164,215 |
Nonrecurring | Level 3 | Corporate Joint Venture | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment loss | 13,419 | 0 | 0 |
Nonrecurring | Level 3 | Assets Held-For-Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment loss | $ 0 | $ 0 | $ 1,753 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment loss | $ 31.9 |
Diversified US/UK | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment loss | 13.4 |
Capitalized acquisition costs | $ 28.4 |
Discounted cash flow method | Minimum | Real estate investment | Terminal capitalization rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 6% |
Discounted cash flow method | Minimum | Real estate investment | Discount rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 7% |
Discounted cash flow method | Minimum | Corporate Joint Venture | Terminal capitalization rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 6.60% |
Discounted cash flow method | Minimum | Corporate Joint Venture | Discount rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 8.80% |
Discounted cash flow method | Maximum | Real estate investment | Terminal capitalization rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 8% |
Discounted cash flow method | Maximum | Real estate investment | Discount rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 10.50% |
Discounted cash flow method | Maximum | Corporate Joint Venture | Terminal capitalization rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 12.50% |
Discounted cash flow method | Maximum | Corporate Joint Venture | Discount rate | Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input (percentage) | 16% |
Segment Reporting - Segment Sta
Segment Reporting - Segment Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Property and other revenues | $ 185,136 | $ 243,277 | $ 275,348 |
Interest income on debt investments | 0 | 4,667 | 7,674 |
Property operating expenses | (137,578) | (177,936) | (184,178) |
Interest expense | (43,278) | (61,620) | (65,991) |
Transaction costs | (1,569) | (54) | (65) |
Asset management fees - related party | (8,058) | (11,105) | (17,170) |
General and administrative expenses | (13,938) | (12,691) | (16,505) |
Depreciation and amortization | (38,587) | (54,836) | (65,006) |
Impairment loss | (45,299) | (5,386) | (165,968) |
Other income, net | 77 | 7,278 | 1,840 |
Realized gain (loss) on investments and other | 1,029 | 79,477 | 302 |
Equity in earnings (losses) of unconsolidated ventures | 47,625 | 15,843 | (34,466) |
Income tax expense | (61) | (99) | (53) |
Net income (loss) | (54,501) | 26,815 | (264,238) |
Direct Investments - Net Lease Segment | |||
Segment Reporting Information [Line Items] | |||
Property and other revenues | 1,596 | 14,708 | 32,899 |
Interest income on debt investments | 0 | 0 | 0 |
Property operating expenses | (39) | (29) | (13) |
Interest expense | (3,609) | (10,900) | (11,832) |
Transaction costs | 0 | 0 | (58) |
Asset management fees - related party | 0 | 0 | 0 |
General and administrative expenses | 0 | (192) | (804) |
Depreciation and amortization | (3,329) | (11,748) | (14,940) |
Impairment loss | (18,500) | (786) | (722) |
Other income, net | 0 | 0 | 0 |
Realized gain (loss) on investments and other | 88 | 10,601 | 0 |
Equity in earnings (losses) of unconsolidated ventures | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income (loss) | (23,793) | 1,654 | 4,530 |
Direct Investments - Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Property and other revenues | 182,519 | 228,569 | 242,250 |
Interest income on debt investments | 0 | 0 | 0 |
Property operating expenses | (137,539) | (177,907) | (184,165) |
Interest expense | (39,669) | (49,979) | (53,210) |
Transaction costs | 0 | (54) | (7) |
Asset management fees - related party | 0 | 0 | 0 |
General and administrative expenses | (31) | (227) | (296) |
Depreciation and amortization | (35,258) | (43,088) | (50,066) |
Impairment loss | (13,380) | (4,600) | (165,246) |
Other income, net | 77 | 7,278 | 1,840 |
Realized gain (loss) on investments and other | 499 | 64,618 | (13) |
Equity in earnings (losses) of unconsolidated ventures | 0 | 0 | 0 |
Income tax expense | (61) | (99) | (53) |
Net income (loss) | (42,843) | 24,511 | (208,966) |
Unconsolidated Investments | |||
Segment Reporting Information [Line Items] | |||
Property and other revenues | 0 | 0 | 0 |
Interest income on debt investments | 0 | 0 | 0 |
Property operating expenses | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Transaction costs | 0 | 0 | 0 |
Asset management fees - related party | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Impairment loss | (13,419) | 0 | 0 |
Other income, net | 0 | 0 | 0 |
Realized gain (loss) on investments and other | 310 | 4,263 | 0 |
Equity in earnings (losses) of unconsolidated ventures | 47,625 | 15,843 | (34,466) |
Income tax expense | 0 | 0 | 0 |
Net income (loss) | 34,516 | 20,106 | (34,466) |
Debt Investment | |||
Segment Reporting Information [Line Items] | |||
Property and other revenues | 0 | 0 | 0 |
Interest income on debt investments | 0 | 4,667 | 7,674 |
Property operating expenses | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Transaction costs | 0 | 0 | 0 |
Asset management fees - related party | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | (19) |
Depreciation and amortization | 0 | 0 | 0 |
Impairment loss | 0 | 0 | 0 |
Other income, net | 0 | 0 | 0 |
Realized gain (loss) on investments and other | 0 | 0 | 0 |
Equity in earnings (losses) of unconsolidated ventures | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income (loss) | 0 | 4,667 | 7,655 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Property and other revenues | 1,021 | 0 | 199 |
Interest income on debt investments | 0 | 0 | 0 |
Property operating expenses | 0 | 0 | 0 |
Interest expense | 0 | (741) | (949) |
Transaction costs | (1,569) | 0 | 0 |
Asset management fees - related party | (8,058) | (11,105) | (17,170) |
General and administrative expenses | (13,907) | (12,272) | (15,386) |
Depreciation and amortization | 0 | 0 | 0 |
Impairment loss | 0 | 0 | 0 |
Other income, net | 0 | 0 | 0 |
Realized gain (loss) on investments and other | 132 | (5) | 315 |
Equity in earnings (losses) of unconsolidated ventures | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income (loss) | $ (22,381) | $ (24,123) | $ (32,991) |
Segment Reporting - Summary of
Segment Reporting - Summary of Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 1,237,835 | $ 1,412,873 |
Direct Investments - Net Lease Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 83,435 | 104,809 | |
Direct Investments - Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 884,137 | 908,517 | |
Unconsolidated Investments | |||
Segment Reporting Information [Line Items] | |||
Assets | 176,502 | 212,309 | |
Debt Investment | |||
Segment Reporting Information [Line Items] | |||
Assets | 0 | 0 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 93,761 | $ 187,238 | |
[1]Represents the consolidated assets and liabilities of NorthStar Healthcare Income Operating Partnership, LP (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which NorthStar Healthcare Income, Inc. (together with its consolidated subsidiaries, the “Company”) is the sole general partner and owns approximately 99.99%. As of December 31, 2022, the Operating Partnership includes $220.9 million and $178.8 million of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. Refer to Note 2, “Summary of Significant Accounting Policies.” |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Properties (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) unit property property1 | |
Real Estate Properties [Line Items] | |
Properties Under Management | property | 56 |
Units Under Management | unit | 6,840 |
Property and Other Revenues | $ | $ 185,136 |
Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 100% |
Solstice | |
Real Estate Properties [Line Items] | |
Properties Under Management | property | 32 |
Units Under Management | unit | 3,993 |
Property and Other Revenues | $ | $ 112,553 |
Solstice | Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 60.80% |
Watermark Retirement Communities | |
Real Estate Properties [Line Items] | |
Properties Under Management | property | 14 |
Units Under Management | unit | 1,782 |
Property and Other Revenues | $ | $ 45,276 |
Watermark Retirement Communities | Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 24.30% |
Avamere Health Services | |
Real Estate Properties [Line Items] | |
Properties Under Management | property | 5 |
Units Under Management | unit | 453 |
Property and Other Revenues | $ | $ 19,778 |
Avamere Health Services | Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 10.70% |
Integral Senior Living | |
Real Estate Properties [Line Items] | |
Properties Under Management | property | 1 |
Units Under Management | unit | 40 |
Property and Other Revenues | $ | $ 4,913 |
Integral Senior Living | Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 2.70% |
Arcadia Management | |
Real Estate Properties [Line Items] | |
Properties Under Management | property | 4 |
Units Under Management | unit | 572 |
Property and Other Revenues | $ | $ 1,597 |
Arcadia Management | Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 0.90% |
Other | |
Real Estate Properties [Line Items] | |
Properties Under Management | property1 | 0 |
Units Under Management | unit | 0 |
Property and Other Revenues | $ | $ 1,019 |
Other | Revenue | Customer Concentration Risk | |
Real Estate Properties [Line Items] | |
Percentage of Total Property and Other Revenues | 0.60% |
Solstice | |
Real Estate Properties [Line Items] | |
Noncontrolling interest, ownership percentage by parent (as a percentage) | 80% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency accrual | $ 0.5 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | 1 Months Ended | |
Feb. 28, 2023 USD ($) facility | Dec. 31, 2022 property | |
Subsequent Event [Line Items] | ||
Number of operating real estate properties | property | 56 | |
Subsequent event | Diversified US/UK | ||
Subsequent Event [Line Items] | ||
Property, plant, and equipment, purchase price of cancelled transaction | $ | $ 121.5 | |
Subsequent event | Diversified US/UK | Specialty Hosipitals | ||
Subsequent Event [Line Items] | ||
Number of operating real estate properties | facility | 2 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation - Schedule of Real Estate Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Gross amount carried at close of period, total | $ 1,196,553 | $ 1,197,900 | $ 1,774,971 | $ 1,931,032 |
Accumulated depreciation | 263,551 | $ 225,301 | $ 291,041 | $ 230,814 |
Federal income tax basis over cost basis | 1,500 | |||
Direct Investment - Operating Lease And Undeveloped Land | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 922,355 | |||
Initial cost of land | 123,964 | |||
Initial cost of buildings and improvements | 1,120,722 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (48,133) | |||
Gross amount carried at close of period, land | 121,518 | |||
Gross amount carried at close of period, buildings and improvements | 1,075,035 | |||
Gross amount carried at close of period, total | 1,196,553 | |||
Accumulated depreciation | 263,551 | |||
Total | 933,002 | |||
Direct Investments - Operating | Milford, OH | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 18,336 | |||
Initial cost of land | 1,160 | |||
Initial cost of buildings and improvements | 14,440 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 3,789 | |||
Gross amount carried at close of period, land | 1,160 | |||
Gross amount carried at close of period, buildings and improvements | 18,229 | |||
Gross amount carried at close of period, total | 19,389 | |||
Accumulated depreciation | 5,011 | |||
Total | $ 14,378 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Milford, OH | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 0 | |||
Initial cost of land | 700 | |||
Initial cost of buildings and improvements | 0 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 5,647 | |||
Gross amount carried at close of period, land | 700 | |||
Gross amount carried at close of period, buildings and improvements | 5,647 | |||
Gross amount carried at close of period, total | 6,347 | |||
Accumulated depreciation | 750 | |||
Total | $ 5,597 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Frisco, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 26,000 | |||
Initial cost of land | 3,100 | |||
Initial cost of buildings and improvements | 35,874 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 4,281 | |||
Gross amount carried at close of period, land | 3,100 | |||
Gross amount carried at close of period, buildings and improvements | 40,155 | |||
Gross amount carried at close of period, total | 43,255 | |||
Accumulated depreciation | 9,805 | |||
Total | $ 33,450 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Apple Valley, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 20,104 | |||
Initial cost of land | 1,168 | |||
Initial cost of buildings and improvements | 24,625 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (4,849) | |||
Gross amount carried at close of period, land | 1,168 | |||
Gross amount carried at close of period, buildings and improvements | 19,776 | |||
Gross amount carried at close of period, total | 20,944 | |||
Accumulated depreciation | 5,154 | |||
Total | $ 15,790 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Auburn, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 22,712 | |||
Initial cost of land | 1,694 | |||
Initial cost of buildings and improvements | 18,438 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,687 | |||
Gross amount carried at close of period, land | 1,694 | |||
Gross amount carried at close of period, buildings and improvements | 20,125 | |||
Gross amount carried at close of period, total | 21,819 | |||
Accumulated depreciation | 4,905 | |||
Total | $ 16,914 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Austin, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 25,008 | |||
Initial cost of land | 4,020 | |||
Initial cost of buildings and improvements | 19,417 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,801 | |||
Gross amount carried at close of period, land | 4,020 | |||
Gross amount carried at close of period, buildings and improvements | 22,218 | |||
Gross amount carried at close of period, total | 26,238 | |||
Accumulated depreciation | 5,766 | |||
Total | $ 20,472 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Bakersfield, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 15,871 | |||
Initial cost of land | 1,831 | |||
Initial cost of buildings and improvements | 21,006 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,744 | |||
Gross amount carried at close of period, land | 1,831 | |||
Gross amount carried at close of period, buildings and improvements | 22,750 | |||
Gross amount carried at close of period, total | 24,581 | |||
Accumulated depreciation | 5,463 | |||
Total | $ 19,118 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Bangor, ME | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 20,240 | |||
Initial cost of land | 2,463 | |||
Initial cost of buildings and improvements | 23,205 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,743 | |||
Gross amount carried at close of period, land | 2,463 | |||
Gross amount carried at close of period, buildings and improvements | 24,948 | |||
Gross amount carried at close of period, total | 27,411 | |||
Accumulated depreciation | 5,469 | |||
Total | $ 21,942 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Bellingham, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 22,474 | |||
Initial cost of land | 2,242 | |||
Initial cost of buildings and improvements | 18,807 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,021 | |||
Gross amount carried at close of period, land | 2,242 | |||
Gross amount carried at close of period, buildings and improvements | 20,828 | |||
Gross amount carried at close of period, total | 23,070 | |||
Accumulated depreciation | 4,913 | |||
Total | $ 18,157 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Clovis, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 17,687 | |||
Initial cost of land | 1,821 | |||
Initial cost of buildings and improvements | 21,721 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,359 | |||
Gross amount carried at close of period, land | 1,821 | |||
Gross amount carried at close of period, buildings and improvements | 23,080 | |||
Gross amount carried at close of period, total | 24,901 | |||
Accumulated depreciation | 5,204 | |||
Total | $ 19,697 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Columbia, MO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 21,399 | |||
Initial cost of land | 1,621 | |||
Initial cost of buildings and improvements | 23,521 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (6,565) | |||
Gross amount carried at close of period, land | 1,621 | |||
Gross amount carried at close of period, buildings and improvements | 16,956 | |||
Gross amount carried at close of period, total | 18,577 | |||
Accumulated depreciation | 5,435 | |||
Total | $ 13,142 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Corpus Christi, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 17,535 | |||
Initial cost of land | 2,263 | |||
Initial cost of buildings and improvements | 20,142 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (4,499) | |||
Gross amount carried at close of period, land | 2,263 | |||
Gross amount carried at close of period, buildings and improvements | 15,643 | |||
Gross amount carried at close of period, total | 17,906 | |||
Accumulated depreciation | 4,738 | |||
Total | $ 13,168 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | East Amherst, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 17,466 | |||
Initial cost of land | 2,873 | |||
Initial cost of buildings and improvements | 18,279 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 3,019 | |||
Gross amount carried at close of period, land | 2,873 | |||
Gross amount carried at close of period, buildings and improvements | 21,298 | |||
Gross amount carried at close of period, total | 24,171 | |||
Accumulated depreciation | 4,413 | |||
Total | $ 19,758 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | El Cajon, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 19,785 | |||
Initial cost of land | 2,357 | |||
Initial cost of buildings and improvements | 14,733 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,467 | |||
Gross amount carried at close of period, land | 2,357 | |||
Gross amount carried at close of period, buildings and improvements | 16,200 | |||
Gross amount carried at close of period, total | 18,557 | |||
Accumulated depreciation | 3,921 | |||
Total | $ 14,636 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | El Paso, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 11,510 | |||
Initial cost of land | 1,610 | |||
Initial cost of buildings and improvements | 14,103 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,734 | |||
Gross amount carried at close of period, land | 1,610 | |||
Gross amount carried at close of period, buildings and improvements | 15,837 | |||
Gross amount carried at close of period, total | 17,447 | |||
Accumulated depreciation | 3,862 | |||
Total | $ 13,585 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Fairport, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 15,575 | |||
Initial cost of land | 1,452 | |||
Initial cost of buildings and improvements | 19,427 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,969 | |||
Gross amount carried at close of period, land | 1,452 | |||
Gross amount carried at close of period, buildings and improvements | 22,396 | |||
Gross amount carried at close of period, total | 23,848 | |||
Accumulated depreciation | 4,413 | |||
Total | $ 19,435 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Fenton, MO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 23,145 | |||
Initial cost of land | 2,410 | |||
Initial cost of buildings and improvements | 22,216 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,335 | |||
Gross amount carried at close of period, land | 2,410 | |||
Gross amount carried at close of period, buildings and improvements | 23,551 | |||
Gross amount carried at close of period, total | 25,961 | |||
Accumulated depreciation | 5,502 | |||
Total | $ 20,459 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Grand Junction, CO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 18,369 | |||
Initial cost of land | 2,525 | |||
Initial cost of buildings and improvements | 26,446 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 3,169 | |||
Gross amount carried at close of period, land | 2,525 | |||
Gross amount carried at close of period, buildings and improvements | 29,615 | |||
Gross amount carried at close of period, total | 32,140 | |||
Accumulated depreciation | 6,024 | |||
Total | $ 26,116 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Grand Junction, CO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 9,412 | |||
Initial cost of land | 1,147 | |||
Initial cost of buildings and improvements | 12,523 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,213 | |||
Gross amount carried at close of period, land | 1,147 | |||
Gross amount carried at close of period, buildings and improvements | 13,736 | |||
Gross amount carried at close of period, total | 14,883 | |||
Accumulated depreciation | 3,313 | |||
Total | $ 11,570 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Grapevine, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 21,054 | |||
Initial cost of land | 1,852 | |||
Initial cost of buildings and improvements | 18,143 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (8,171) | |||
Gross amount carried at close of period, land | 1,852 | |||
Gross amount carried at close of period, buildings and improvements | 9,972 | |||
Gross amount carried at close of period, total | 11,824 | |||
Accumulated depreciation | 4,029 | |||
Total | $ 7,795 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Groton, CT | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 16,588 | |||
Initial cost of land | 3,673 | |||
Initial cost of buildings and improvements | 21,879 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (6,048) | |||
Gross amount carried at close of period, land | 3,673 | |||
Gross amount carried at close of period, buildings and improvements | 15,831 | |||
Gross amount carried at close of period, total | 19,504 | |||
Accumulated depreciation | 5,098 | |||
Total | $ 14,406 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Guilford, CT | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 22,905 | |||
Initial cost of land | 6,725 | |||
Initial cost of buildings and improvements | 27,488 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (19,684) | |||
Gross amount carried at close of period, land | 6,725 | |||
Gross amount carried at close of period, buildings and improvements | 7,804 | |||
Gross amount carried at close of period, total | 14,529 | |||
Accumulated depreciation | 4,766 | |||
Total | $ 9,763 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Joliet, IL | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 14,057 | |||
Initial cost of land | 1,473 | |||
Initial cost of buildings and improvements | 23,427 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (5,957) | |||
Gross amount carried at close of period, land | 1,473 | |||
Gross amount carried at close of period, buildings and improvements | 17,470 | |||
Gross amount carried at close of period, total | 18,943 | |||
Accumulated depreciation | 4,793 | |||
Total | $ 14,150 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Kennewick, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 7,236 | |||
Initial cost of land | 1,168 | |||
Initial cost of buildings and improvements | 18,933 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,779 | |||
Gross amount carried at close of period, land | 1,168 | |||
Gross amount carried at close of period, buildings and improvements | 20,712 | |||
Gross amount carried at close of period, total | 21,880 | |||
Accumulated depreciation | 4,644 | |||
Total | $ 17,236 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Las Cruces, NM | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 10,545 | |||
Initial cost of land | 1,568 | |||
Initial cost of buildings and improvements | 15,091 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,987 | |||
Gross amount carried at close of period, land | 1,568 | |||
Gross amount carried at close of period, buildings and improvements | 17,078 | |||
Gross amount carried at close of period, total | 18,646 | |||
Accumulated depreciation | 4,169 | |||
Total | $ 14,477 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Lees Summit, MO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 25,629 | |||
Initial cost of land | 1,263 | |||
Initial cost of buildings and improvements | 20,500 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,851 | |||
Gross amount carried at close of period, land | 1,263 | |||
Gross amount carried at close of period, buildings and improvements | 23,351 | |||
Gross amount carried at close of period, total | 24,614 | |||
Accumulated depreciation | 5,233 | |||
Total | $ 19,381 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Lodi, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 18,958 | |||
Initial cost of land | 2,863 | |||
Initial cost of buildings and improvements | 21,152 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,259 | |||
Gross amount carried at close of period, land | 2,863 | |||
Gross amount carried at close of period, buildings and improvements | 23,411 | |||
Gross amount carried at close of period, total | 26,274 | |||
Accumulated depreciation | 5,316 | |||
Total | $ 20,958 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Normandy Park, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 15,299 | |||
Initial cost of land | 2,031 | |||
Initial cost of buildings and improvements | 16,407 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (2,844) | |||
Gross amount carried at close of period, land | 2,031 | |||
Gross amount carried at close of period, buildings and improvements | 13,563 | |||
Gross amount carried at close of period, total | 15,594 | |||
Accumulated depreciation | 4,096 | |||
Total | $ 11,498 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Palatine, IL | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 18,957 | |||
Initial cost of land | 1,221 | |||
Initial cost of buildings and improvements | 26,993 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (10,972) | |||
Gross amount carried at close of period, land | 1,221 | |||
Gross amount carried at close of period, buildings and improvements | 16,021 | |||
Gross amount carried at close of period, total | 17,242 | |||
Accumulated depreciation | 6,149 | |||
Total | $ 11,093 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Plano, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 15,168 | |||
Initial cost of land | 2,200 | |||
Initial cost of buildings and improvements | 14,860 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (4,878) | |||
Gross amount carried at close of period, land | 2,200 | |||
Gross amount carried at close of period, buildings and improvements | 9,982 | |||
Gross amount carried at close of period, total | 12,182 | |||
Accumulated depreciation | 3,917 | |||
Total | $ 8,265 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Renton, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 17,954 | |||
Initial cost of land | 2,642 | |||
Initial cost of buildings and improvements | 20,469 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 3,058 | |||
Gross amount carried at close of period, land | 2,642 | |||
Gross amount carried at close of period, buildings and improvements | 23,527 | |||
Gross amount carried at close of period, total | 26,169 | |||
Accumulated depreciation | 5,219 | |||
Total | $ 20,950 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Sandy, UT | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 14,892 | |||
Initial cost of land | 2,810 | |||
Initial cost of buildings and improvements | 19,132 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (5,631) | |||
Gross amount carried at close of period, land | 2,810 | |||
Gross amount carried at close of period, buildings and improvements | 13,501 | |||
Gross amount carried at close of period, total | 16,311 | |||
Accumulated depreciation | 4,194 | |||
Total | $ 12,117 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Santa Rosa, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 26,342 | |||
Initial cost of land | 5,409 | |||
Initial cost of buildings and improvements | 26,183 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,627 | |||
Gross amount carried at close of period, land | 5,409 | |||
Gross amount carried at close of period, buildings and improvements | 28,810 | |||
Gross amount carried at close of period, total | 34,219 | |||
Accumulated depreciation | 6,484 | |||
Total | $ 27,735 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Sun City West, AZ | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 24,204 | |||
Initial cost of land | 2,684 | |||
Initial cost of buildings and improvements | 29,056 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (4,604) | |||
Gross amount carried at close of period, land | 2,684 | |||
Gross amount carried at close of period, buildings and improvements | 24,452 | |||
Gross amount carried at close of period, total | 27,136 | |||
Accumulated depreciation | 6,620 | |||
Total | $ 20,516 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Tacoma, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 28,328 | |||
Initial cost of land | 7,974 | |||
Initial cost of buildings and improvements | 32,435 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 3,575 | |||
Gross amount carried at close of period, land | 7,977 | |||
Gross amount carried at close of period, buildings and improvements | 36,007 | |||
Gross amount carried at close of period, total | 43,984 | |||
Accumulated depreciation | 8,688 | |||
Total | $ 35,296 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Frisco, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 0 | |||
Initial cost of land | 1,130 | |||
Initial cost of buildings and improvements | 0 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 12,648 | |||
Gross amount carried at close of period, land | 1,130 | |||
Gross amount carried at close of period, buildings and improvements | 12,648 | |||
Gross amount carried at close of period, total | 13,778 | |||
Accumulated depreciation | 2,414 | |||
Total | $ 11,364 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Albany, OR | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 8,351 | |||
Initial cost of land | 958 | |||
Initial cost of buildings and improvements | 6,625 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (3,490) | |||
Gross amount carried at close of period, land | 758 | |||
Gross amount carried at close of period, buildings and improvements | 3,335 | |||
Gross amount carried at close of period, total | 4,093 | |||
Accumulated depreciation | 1,449 | |||
Total | $ 2,644 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Port Townsend, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 15,966 | |||
Initial cost of land | 1,613 | |||
Initial cost of buildings and improvements | 21,460 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,259 | |||
Gross amount carried at close of period, land | 996 | |||
Gross amount carried at close of period, buildings and improvements | 23,336 | |||
Gross amount carried at close of period, total | 24,332 | |||
Accumulated depreciation | 4,719 | |||
Total | $ 19,613 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Roseburg, OR | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 11,813 | |||
Initial cost of land | 699 | |||
Initial cost of buildings and improvements | 11,589 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 844 | |||
Gross amount carried at close of period, land | 459 | |||
Gross amount carried at close of period, buildings and improvements | 12,673 | |||
Gross amount carried at close of period, total | 13,132 | |||
Accumulated depreciation | 2,605 | |||
Total | $ 10,527 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Sandy, OR | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 13,474 | |||
Initial cost of land | 1,611 | |||
Initial cost of buildings and improvements | 16,697 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,040 | |||
Gross amount carried at close of period, land | 1,233 | |||
Gross amount carried at close of period, buildings and improvements | 18,115 | |||
Gross amount carried at close of period, total | 19,348 | |||
Accumulated depreciation | 3,475 | |||
Total | $ 15,873 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Santa Barbara, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 0 | |||
Initial cost of land | 2,408 | |||
Initial cost of buildings and improvements | 15,674 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 531 | |||
Gross amount carried at close of period, land | 2,408 | |||
Gross amount carried at close of period, buildings and improvements | 16,205 | |||
Gross amount carried at close of period, total | 18,613 | |||
Accumulated depreciation | 2,763 | |||
Total | $ 15,850 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Wenatchee, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 18,391 | |||
Initial cost of land | 2,540 | |||
Initial cost of buildings and improvements | 28,971 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,058 | |||
Gross amount carried at close of period, land | 1,534 | |||
Gross amount carried at close of period, buildings and improvements | 31,035 | |||
Gross amount carried at close of period, total | 32,569 | |||
Accumulated depreciation | 5,570 | |||
Total | $ 26,999 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Operating | Churchville, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 6,538 | |||
Initial cost of land | 296 | |||
Initial cost of buildings and improvements | 7,712 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 896 | |||
Gross amount carried at close of period, land | 296 | |||
Gross amount carried at close of period, buildings and improvements | 8,608 | |||
Gross amount carried at close of period, total | 8,904 | |||
Accumulated depreciation | 1,919 | |||
Total | $ 6,985 | |||
Life on which depreciation is computed (in years) | 35 years | |||
Direct Investments - Operating | Greece, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 0 | |||
Initial cost of land | 534 | |||
Initial cost of buildings and improvements | 18,158 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (11,063) | |||
Gross amount carried at close of period, land | 533 | |||
Gross amount carried at close of period, buildings and improvements | 7,096 | |||
Gross amount carried at close of period, total | 7,629 | |||
Accumulated depreciation | 1,729 | |||
Total | $ 5,900 | |||
Life on which depreciation is computed (in years) | 49 years | |||
Direct Investments - Operating | Greece, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 26,681 | |||
Initial cost of land | 1,007 | |||
Initial cost of buildings and improvements | 31,960 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,400 | |||
Gross amount carried at close of period, land | 1,007 | |||
Gross amount carried at close of period, buildings and improvements | 34,360 | |||
Gross amount carried at close of period, total | 35,367 | |||
Accumulated depreciation | 6,278 | |||
Total | $ 29,089 | |||
Life on which depreciation is computed (in years) | 41 years | |||
Direct Investments - Operating | Henrietta, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 11,814 | |||
Initial cost of land | 1,153 | |||
Initial cost of buildings and improvements | 16,812 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 1,592 | |||
Gross amount carried at close of period, land | 1,152 | |||
Gross amount carried at close of period, buildings and improvements | 18,405 | |||
Gross amount carried at close of period, total | 19,557 | |||
Accumulated depreciation | 4,247 | |||
Total | $ 15,310 | |||
Life on which depreciation is computed (in years) | 36 years | |||
Direct Investments - Operating | Penfield, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 12,431 | |||
Initial cost of land | 781 | |||
Initial cost of buildings and improvements | 20,273 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (11,445) | |||
Gross amount carried at close of period, land | 781 | |||
Gross amount carried at close of period, buildings and improvements | 8,828 | |||
Gross amount carried at close of period, total | 9,609 | |||
Accumulated depreciation | 3,963 | |||
Total | $ 5,646 | |||
Life on which depreciation is computed (in years) | 30 years | |||
Direct Investments - Operating | Penfield, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 10,856 | |||
Initial cost of land | 516 | |||
Initial cost of buildings and improvements | 9,898 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 955 | |||
Gross amount carried at close of period, land | 515 | |||
Gross amount carried at close of period, buildings and improvements | 10,854 | |||
Gross amount carried at close of period, total | 11,369 | |||
Accumulated depreciation | 2,368 | |||
Total | $ 9,001 | |||
Life on which depreciation is computed (in years) | 35 years | |||
Direct Investments - Operating | Rochester, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 18,206 | |||
Initial cost of land | 2,426 | |||
Initial cost of buildings and improvements | 31,861 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 3,665 | |||
Gross amount carried at close of period, land | 2,425 | |||
Gross amount carried at close of period, buildings and improvements | 35,527 | |||
Gross amount carried at close of period, total | 37,952 | |||
Accumulated depreciation | 6,541 | |||
Total | $ 31,411 | |||
Life on which depreciation is computed (in years) | 39 years | |||
Direct Investments - Operating | Rochester, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 5,311 | |||
Initial cost of land | 297 | |||
Initial cost of buildings and improvements | 12,484 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (8,992) | |||
Gross amount carried at close of period, land | 296 | |||
Gross amount carried at close of period, buildings and improvements | 3,493 | |||
Gross amount carried at close of period, total | 3,789 | |||
Accumulated depreciation | 2,328 | |||
Total | $ 1,461 | |||
Life on which depreciation is computed (in years) | 37 years | |||
Direct Investments - Operating | Victor, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 27,020 | |||
Initial cost of land | 1,060 | |||
Initial cost of buildings and improvements | 33,246 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 2,533 | |||
Gross amount carried at close of period, land | 1,059 | |||
Gross amount carried at close of period, buildings and improvements | 35,780 | |||
Gross amount carried at close of period, total | 36,839 | |||
Accumulated depreciation | 6,443 | |||
Total | $ 30,396 | |||
Life on which depreciation is computed (in years) | 41 years | |||
Direct Investments - Operating | Victor, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 11,336 | |||
Initial cost of land | 557 | |||
Initial cost of buildings and improvements | 13,570 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 57 | |||
Gross amount carried at close of period, land | 555 | |||
Gross amount carried at close of period, buildings and improvements | 13,629 | |||
Gross amount carried at close of period, total | 14,184 | |||
Accumulated depreciation | 1,916 | |||
Total | $ 12,268 | |||
Life on which depreciation is computed (in years) | 41 years | |||
Undeveloped Land | Rochester, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 0 | |||
Initial cost of land | 544 | |||
Initial cost of buildings and improvements | 0 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 0 | |||
Gross amount carried at close of period, land | 544 | |||
Gross amount carried at close of period, buildings and improvements | 0 | |||
Gross amount carried at close of period, total | 544 | |||
Total | 544 | |||
Undeveloped Land | Penfield, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial cost of land | 534 | |||
Initial cost of buildings and improvements | 0 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 0 | |||
Gross amount carried at close of period, land | 534 | |||
Gross amount carried at close of period, buildings and improvements | 0 | |||
Gross amount carried at close of period, total | 534 | |||
Total | 534 | |||
Direct Investments - Net Lease | Bohemia, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 22,198 | |||
Initial cost of land | 4,258 | |||
Initial cost of buildings and improvements | 27,805 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (3,939) | |||
Gross amount carried at close of period, land | 4,258 | |||
Gross amount carried at close of period, buildings and improvements | 23,866 | |||
Gross amount carried at close of period, total | 28,124 | |||
Accumulated depreciation | 6,626 | |||
Total | $ 21,498 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Net Lease | Hauppauge, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 13,468 | |||
Initial cost of land | 2,086 | |||
Initial cost of buildings and improvements | 18,495 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (149) | |||
Gross amount carried at close of period, land | 2,086 | |||
Gross amount carried at close of period, buildings and improvements | 18,346 | |||
Gross amount carried at close of period, total | 20,432 | |||
Accumulated depreciation | 5,087 | |||
Total | $ 15,345 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Net Lease | Islandia, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 33,094 | |||
Initial cost of land | 8,437 | |||
Initial cost of buildings and improvements | 37,198 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | (12,238) | |||
Gross amount carried at close of period, land | 8,437 | |||
Gross amount carried at close of period, buildings and improvements | 24,960 | |||
Gross amount carried at close of period, total | 33,397 | |||
Accumulated depreciation | 9,046 | |||
Total | $ 24,351 | |||
Life on which depreciation is computed (in years) | 40 years | |||
Direct Investments - Net Lease | Westbury, NY | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 14,663 | |||
Initial cost of land | 2,506 | |||
Initial cost of buildings and improvements | 19,163 | |||
Costs capitalized subsequent to acquisition, land, buildings, and improvements | 293 | |||
Gross amount carried at close of period, land | 2,506 | |||
Gross amount carried at close of period, buildings and improvements | 19,456 | |||
Gross amount carried at close of period, total | 21,962 | |||
Accumulated depreciation | 4,589 | |||
Total | $ 17,373 | |||
Life on which depreciation is computed (in years) | 40 years |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Schedule of Real Estate and Accumulated Depreciation Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 1,197,900 | $ 1,774,971 | $ 1,931,032 |
Dispositions | 0 | (603,082) | 0 |
Improvements | 30,531 | 31,397 | 17,036 |
Impairment | (31,878) | (5,386) | (165,246) |
Subtotal | 1,196,553 | 1,197,900 | 1,782,822 |
Classified as held for sale | 0 | 0 | (7,851) |
Balance at end of year | 1,196,553 | 1,197,900 | 1,774,971 |
Amount of federal income tax basis over cost basis | 349,400 | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | |||
Balance at beginning of year | 225,301 | 291,041 | 230,814 |
Depreciation expense | 38,250 | 53,476 | 63,078 |
Property dispositions | 0 | (119,216) | 0 |
Subtotal | 263,551 | 225,301 | 293,892 |
Classified as held for sale | 0 | 0 | (2,851) |
Balance at end of year | $ 263,551 | $ 225,301 | $ 291,041 |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate - Real Estate Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Balance at beginning of year | $ 0 | $ 55,864 | $ 55,468 | |
Additions to Mortgage Loans on Real Estate [Abstract] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, New Mortgage Loan, Capitalized Payment In-Kind Interest | 0 | 194 | 0 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Loan Modification Fees | 0 | (687) | 0 | |
Deductions: | ||||
Reclassification | 0 | 18,307 | 271 | |
Repayment of principal | 0 | (74,376) | 0 | |
Amortization of acquisition costs, fees, premiums and discounts | 0 | 698 | 125 | |
Balance at end of year | 0 | 0 | $ 55,864 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Carrying value | 176,502 | 212,309 | ||
Espresso | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Carrying value | $ 18,019 | $ 0 | $ 0 |
Schedule IV - Mortgage Loans _4
Schedule IV - Mortgage Loans on Real Estate - Real Estate Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Balance at beginning of year | $ 0 | $ 55,864 | $ 55,468 | |
Additions to Mortgage Loans on Real Estate [Abstract] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, New Mortgage Loan, Capitalized Payment In-Kind Interest | 0 | 194 | 0 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Loan Modification Fees | 0 | (687) | 0 | |
Deductions: | ||||
Reclassification | 0 | 18,307 | 271 | |
Repayment of principal | 0 | (74,376) | 0 | |
Amortization of acquisition costs, fees, premiums and discounts | 0 | 698 | 125 | |
Balance at end of year | 0 | 0 | $ 55,864 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Carrying value | 176,502 | 212,309 | ||
Espresso | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Carrying value | $ 18,019 | $ 0 | $ 0 |