Property, Plant and Equipment Disclosure [Text Block] | Note 3 Property Portfolio Summary of Properties Acquired During the nine months ended September 30, 2017, the Company completed 16 acquisitions. Land Building Site & Tenant Improvements Acquired Lease Intangibles Gross Investment in Real Estate Balances as of January 1, 2017 $ 17,785,001 $ 179,253,398 $ 2,651,287 $ 7,187,041 $ 206,876,727 Facility Acquired Date Acquired: Cape Coral 1/10/17 353,349 7,016,511 - - 7,369,860 Lewisburg 1/12/17 471,184 5,819,137 504,726 504,953 7,300,000 Las Cruces 2/1/17 397,148 4,618,258 - - 5,015,406 Prescott 2/9/17 790,637 3,821,417 - - 4,612,054 Clermont 3/1/17 - 4,361,028 205,922 867,678 5,434,628 Sandusky 3/10/17 409,204 3,997,607 - - 4,406,811 Great Bend 3/31/17 836,929 23,800,758 - - 24,637,687 Oklahoma City 3/31/17 2,086,885 37,713,709 1,876,730 7,822,676 49,500,000 Sandusky 4/21/17 97,804 978,035 - - 1,075,839 Brockport 6/27/17 412,838 6,885,477 491,427 1,294,763 9,084,505 Flower Mound 6/27/17 580,763 2,922,164 381,859 406,757 4,291,543 Sherman facility 6/30/17 1,600,711 25,011,110 - - 26,611,821 Sandusky facility 8/15/17 55,734 1,214,999 - - 1,270,733 Lubbock facility 8/18/17 1,302,651 5,041,964 947,227 908,158 8,200,000 Germantown 8/30/17 2,700,468 8,078,246 656,111 4,505,425 15,940,250 Austin 9/25/17 6,957,821 28,507,662 1,373,336 3,811,181 40,650,000 Total Additions1: 19,054,126 169,788,082 6,437,338 20,121,591 215,401,137 Balances as of September 30, 2017 $ 36,839,127 $ 349,041,480 $ 9,088,625 $ 27,308,632 $ 422,277,864 1 The Lubbock facility acquisition included approximately $ 1,000,000 865,676 213,535,461 Depreciation expense was $ 2,175,668 5,372,308 585,449 1,528,281 A summary description of the four acquisitions that were completed during the three months ended September 30, 2017 is as follows: Austin Facility On September 25, 2017, the Company closed on the acquisition of the Central Texas Rehabilitation Hospital (the “Rehab Hospital”) and approximately 1.27 40.65 Upon the closing of the acquisition of the Austin Facility, the Company assumed the Austin Seller’s interest, as lessor, in the absolute triple-net lease (the “Austin Facility Lease”) with CTRH, LLC. Accounting Treatment The Company accounted for the acquisition of the Austin Facility as a business combination in accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 805 - Business Combinations. Land and site improvements $ 7,222,455 Building and tenant improvements 29,616,364 Above market lease intangible 245,686 In-place leases 1,680,282 Leasing costs 1,885,213 Total purchase price $ 40,650,000 The above allocation is preliminary and subject to revision within the measurement period, not to exceed one year from the date of the acquisition. Germantown Facility On August 30, 2017, the Company purchased a medical office building located in Germantown, Tennessee (the “Germantown Facility”) from Brierbrook Partners, LLC (“Brierbrook”) for a purchase price of $ 15.94 Accounting Treatment The Company accounted for the acquisition of the Germantown Facility as a business combination in accordance with the provisions of ASC Topic 805 - Business Combinations. Land and site improvements $ 3,049,683 Building and tenant improvements 8,385,142 Above market lease intangible 3,284,388 In-place leases 586,812 Leasing costs 634,225 Total purchase price $ 15,940,250 The above allocation is preliminary and subject to revision within the measurement period, not to exceed one year from the date of the acquisition. Lubbock Facility On August 18, 2017, the Company purchased a medical office building located in Lubbock, Texas (the “Lubbock Facility”) from Cardiac Partners Development, LP, for a purchase price of $ 8.2 Accounting Treatment The Company accounted for the acquisition of the Lubbock Facility as a business combination in accordance with the provisions of ASC Topic 805 - Business Combinations. Land and site improvements $ 1,566,487 Building and tenant improvements 5,725,355 In-place leases 414,189 Leasing costs 493,969 Total purchase price $ 8,200,000 The above allocation is preliminary and subject to revision within the measurement period, not to exceed one year from the date of the acquisition. Sandusky Facility (Ballville Property) On August 15, 2017, the Company purchased a medical office building located in Ballville, Ohio (the “Ballville Property”) from NOMS Property, LLC, for a purchase price of $ 1.3 Unaudited Pro Forma Financial Information for the Three and Nine Months Ended September 30, 2017 and September 30, 2016 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (unaudited) (unaudited) Revenue $ 9,425,057 $ 4,909,852 $ 25,736,802 $ 13,808,974 Net income (loss) $ 653,952 $ (2,047,241) $ (1,053,239) $ (4,616,832) Net income (loss) attributable to common stockholders $ 428,546 $ (2,047,241) $ (1,284,133) $ (4,616,832) Income (loss) attributable to common stockholders per share basic and diluted $ 0.02 $ (0.12) $ (0.07) $ (0.71) Weighted average shares outstanding basic and diluted 21,522,251 17,371,743 18,938,367 6,514,230 Intangible Assets and Liabilities As of September 30, 2017 Accumulated Cost Amortization Net Assets In-place leases $ 14,590,650 $ (1,056,983) $ 13,533,667 Above market ground lease 487,978 (3,972) 484,006 Above market leases 4,363,022 (73,911) 4,289,111 Leasing costs 7,866,982 (311,734) 7,555,248 $ 27,308,632 $ (1,446,600) $ 25,862,032 Liabilities Below market leases $ 1,145,030 $ (64,907) $ 1,080,123 The following is a summary of the carrying amount of intangible assets and liabilities as of December 31, 2016: As of December 31, 2016 Accumulated Cost Amortization Net Assets In-place leases $ 5,826,556 $ (34,789) $ 5,791,767 Above market leases 74,096 (443) 73,653 Leasing costs 1,286,389 (7,533) 1,278,856 $ 7,187,041 $ (42,765) $ 7,144,276 Liabilities Below market leases $ 279,354 $ (1,437) $ 277,917 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Amortization expense related to in-place leases $ 388,409 $ 1,022,194 Amortization expense related to leasing costs $ 135,078 $ 304,201 Decrease of rental revenue related to above market ground lease $ 1,702 $ 3,972 Decrease of rental revenue related to above market leases $ 55,757 $ 73,468 Increase of rental revenue related to below market leases $ 32,443 $ 63,470 Net Decrease in Revenue Net Increase in Expenses 2017 $ (113,108) $ 650,590 2018 (452,433) 2,602,359 2019 (452,433) 2,602,359 2020 (452,433) 2,602,359 2021 (455,278) 1,987,746 Thereafter (1,767,309) 10,643,502 Total $ (3,692,994) $ 21,088,915 As of September 30, 2017, the weighted average amortization period for asset lease intangibles and liability lease intangibles were 8.12 8.32 |