Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Healthcare Trust, Inc. | |
Entity Central Index Key | 1,561,032 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 87,204,088 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Real estate investments, at cost: | ||
Land | $ 192,790 | $ 192,790 |
Buildings, fixtures and improvements | 1,887,134 | 1,885,713 |
Construction in progress | 27,180 | 21,309 |
Acquired intangible assets | 241,459 | 241,459 |
Total real estate investments, at cost | 2,348,563 | 2,341,271 |
Less: accumulated depreciation and amortization | (171,672) | (146,669) |
Total real estate investments, net | 2,176,891 | 2,194,602 |
Cash and cash equivalents | 36,509 | 24,474 |
Restricted cash | 4,299 | 4,647 |
Investment securities, at fair value | 1,070 | 1,078 |
Straight-line rent receivable, net | 13,927 | 11,470 |
Prepaid expenses and other assets | 22,237 | 21,707 |
Deferred costs, net | 11,094 | 11,864 |
Total assets | 2,266,027 | 2,269,842 |
LIABILITIES AND EQUITY | ||
Mortgage notes payable | 152,803 | 157,305 |
Mortgage premiums, net | 1,889 | 2,403 |
Credit facility | 460,000 | 430,000 |
Market lease intangible liabilities, net | 22,355 | 22,994 |
Accounts payable and accrued expenses (including $1,152 and $970 due to related parties as of September 30, 2015 and December 31, 2014, respectively) | 29,303 | 38,449 |
Deferred rent | 4,740 | 4,356 |
Distributions payable | 12,521 | 12,518 |
Total liabilities | 683,611 | 668,025 |
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of September 30, 2015 and December 31, 2014 | 0 | 0 |
Common stock, $0.01 par value, 300,000,000 shares authorized, 85,818,405 and 83,718,853 shares of common stock issued and outstanding as of September 30, 2015 and December 31, 2014, respectively | 869 | 861 |
Additional paid-in capital | 1,926,513 | 1,907,549 |
Accumulated other comprehensive income (loss) | (13) | (6) |
Accumulated deficit | (354,472) | (316,284) |
Total stockholders' equity | 1,572,897 | 1,592,120 |
Non-controlling interests | 9,519 | 9,697 |
Total equity | 1,582,416 | 1,601,817 |
Total liabilities and equity | $ 2,266,027 | $ 2,269,842 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Due to affiliates | $ 781 | $ 536 |
Preferred stock, par value (in usd 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 usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 86,933,798 | 86,135,411 |
Common stock, shares outstanding (in shares) | 86,933,798 | 86,135,411 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Rental income | $ 26,592 | $ 20,856 |
Operating expense reimbursement | 3,709 | 3,130 |
Resident services and fee income | 45,202 | 33,135 |
Contingent purchase price consideration | 6 | 0 |
Total revenues | 75,509 | 57,121 |
Expenses: | ||
Property operating | 38,792 | 27,477 |
Operating fees to related parties | 5,155 | 0 |
Acquisition and transaction related | 42 | 1,999 |
General and administrative | 3,987 | 2,599 |
Depreciation and amortization | 24,615 | 29,448 |
Total expenses | 72,591 | 61,523 |
Operating loss | 2,918 | (4,402) |
Other income (expense): | ||
Interest expense | (4,984) | (1,373) |
Income from investment securities and interest income | 22 | 273 |
Gain on sale of investment securities | 0 | 286 |
Total other expense | (4,962) | (814) |
Loss before income tax and non-controlling interests | (2,044) | (5,216) |
Income tax benefit | 483 | (29) |
Net loss | (1,561) | (5,245) |
Net loss attributable to non-controlling interests | 6 | 25 |
Net loss attributable to stockholders | (1,555) | (5,220) |
Other comprehensive loss: | ||
Unrealized loss on investment securities, net | (7) | 45 |
Comprehensive loss | $ (1,562) | $ (5,175) |
Basic and diluted weighted-average shares outstanding (in shares) | 86,658,678 | 84,250,503 |
Basic and diluted net loss per share (in usd per share) | $ (0.02) | $ (0.06) |
Distributions declared per share (in usd per share) | $ 0.42 | $ 0.42 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2015 | 86,135,411 | ||||||
Beginning balance at Dec. 31, 2015 | $ 1,601,817 | $ 1,592,120 | $ 861 | $ 1,907,549 | $ (6) | $ (316,284) | $ 9,697 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued through distribution reinvestment plan (in shares) | 800,000 | 805,047 | |||||
Common stock issued through distribution reinvestment plan | $ 19,120 | 19,120 | $ 8 | 19,112 | |||
Common stock repurchases (in shares) | (6,660) | ||||||
Common stock repurchases | (163) | (163) | (163) | ||||
Equity-based compensation | 15 | 15 | 15 | ||||
Distributions declared | (36,633) | (36,633) | (36,633) | ||||
Distributions to non-controlling interest holders | (172) | (172) | |||||
Unrealized loss on investments | (7) | (7) | (7) | ||||
Net loss | (1,561) | (1,555) | (1,555) | (6) | |||
Ending Balance (in shares) at Mar. 31, 2016 | 86,933,798 | ||||||
Ending balance at Mar. 31, 2016 | $ 1,582,416 | $ 1,572,897 | $ 869 | $ 1,926,513 | $ (13) | $ (354,472) | $ 9,519 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (1,561) | $ (5,245) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 24,615 | 29,448 |
Amortization of deferred financing costs | 1,139 | 480 |
Amortization of mortgage premiums | (514) | (332) |
Accretion of below-market lease liability and amortization of above-market lease assets, net | 27 | 17 |
Bad debt expense | 386 | 667 |
Equity-based compensation | 15 | 1 |
Gain on sale of investment securities | 0 | (286) |
Changes in assets and liabilities: | ||
Straight-line rent receivable | (3,161) | (2,409) |
Prepaid expenses and other assets | 1,699 | (1,430) |
Accounts payable and accrued expenses | 2,707 | 2,796 |
Deferred rent and other liabilities | 384 | 1,032 |
Restricted cash | 348 | (208) |
Net cash used in operating activities | 26,084 | 24,531 |
Cash flows from investing activities: | ||
Investment in real estate and other assets | (5,872) | (90,553) |
Deposits paid for real estate acquisitions | (2,000) | (2,025) |
Capital expenditures | (1,813) | (1,088) |
Purchase of investment securities | 0 | (49) |
Proceeds from sales of investment securities | 0 | 4,207 |
Net cash used in investing activities | (9,685) | (89,508) |
Cash flows from financing activities: | ||
Proceeds from credit facility | 30,000 | 0 |
Payments of mortgage notes payable | (4,664) | (286) |
Payments of deferred financing costs | (3) | (594) |
Proceeds from issuance of common stock | 0 | 6 |
Common stock repurchases | (12,015) | (1,292) |
Payments of offering costs and fees related to common stock issuances | 0 | (629) |
Distributions paid | (17,510) | (16,009) |
Distributions to non-controlling interest holders | (172) | (178) |
Net cash provided by financing activities | (4,364) | (18,982) |
Net change in cash | 12,035 | (83,959) |
Cash and cash equivalents, beginning of period | 24,474 | 182,617 |
Cash and cash equivalents, end of period | 36,509 | 98,658 |
Supplemental Disclosures: | ||
Cash paid for interest | 4,543 | 1,229 |
Cash paid for taxes | 0 | 44 |
Non-Cash Financing Activities: | ||
Unfulfilled repurchase requests included in accounts payable, accrued expenses and other liabilities | 163 | 1,678 |
Assumption of mortgage notes payable used to acquire investments in real estate | 0 | 31,536 |
Premiums on assumed mortgage notes payable | 0 | 2,536 |
Common stock issued through distribution reinvestment plan | $ 19,120 | $ 19,235 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Healthcare Trust, Inc. (including, as required by context, Healthcare Trust Operating Partnership, LP (the "OP") and its subsidiaries, the "Company") invests in healthcare real estate, such as seniors housing and medical office buildings ("MOB"), located in the United States for investment purposes. As of March 31, 2016 , the Company owned 166 properties located in 29 states and comprised of 8.5 million rentable square feet. The Company, which was incorporated on October 15, 2012, is a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through the OP. In February 2013, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to $1.7 billion of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The Company closed its IPO in November 2014. As of March 31, 2016 , the Company had received $2.2 billion from its IPO including proceeds received under the distribution reinvestment plan ("DRIP"). In 2015, the Company’s board of directors determined that it was in the Company’s best interest to evaluate strategic alternatives, including a listing on a national securities exchange. The Company's board of directors, led by its independent directors, announced in April 2016 that it had initiated a strategic review process to identify, examine, and consider a range of strategic alternatives available to the Company with the objective of maximizing shareholder value. See Note 16 — Subsequent Events — Review of Strategic Alternatives. On April 11, 2016 (the "NAV Pricing Date"), the Company's board of directors approved an estimate of per share net asset value ("NAV"). Subsequent valuations will occur periodically, at the discretion of the Company's board of directors, provided that such calculations will be made at least annually. Pursuant to the DRIP, the Company's stockholders can elect to reinvest distributions by purchasing shares of the Company's common stock. Prior to the NAV Pricing Date, the Company offered shares pursuant to the DRIP at $23.75 per share, which was 95% of the initial offering price of shares of common stock in the IPO. Effective April 11, 2016, the Company began offering shares pursuant to the DRIP at the then-current NAV approved by the Company's board of directors (see Note 8 — Common Stock ). The Company has no employees. Healthcare Trust Advisors, LLC (the "Advisor") has been retained by the Company to manage the Company's affairs on a day-to-day basis. The Company has retained Healthcare Trust Properties, LLC (the "Property Manager") to serve as the Company's property manager. The Advisor and Property Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of the Company's sponsor, American Realty Capital VII, LLC (the "Sponsor"), as a result of which they are related parties, and each have received or will receive compensation, fees and expense reimbursements from the Company for services related to managing its business. The Advisor, Healthcare Trust Special Limited Partnership, LLC (the "Special Limited Partner") and Property Manager also have received or will receive compensation, fees and expense reimbursements related to the investment and management of the Company's assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results for the entire year or any subsequent interim period. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2015 , which are included in the Company's Annual Report on Form 10-K filed with the SEC on March 11, 2016 . There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2016 other than the updates described below. Reclassifications Certain prior year amounts within rental income, resident services and fee income, cash flows from operating activities and cash flows from financing activities have been reclassified to conform with the current year presentation. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company are presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance. In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption was permitted provided that the guidance was applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations and cash flows. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of this new guidance on its consolidated financial statements and has determined that the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company’s partnership interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, this standard did not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance resulted in the reclassification of $2.0 million and $2.2 million of deferred financing costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable, net of deferred financing costs in the Company's consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively. In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance. In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016 and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate Investments, Net [Abstract] | |
Real Estate Investments | Real Estate Investments The Company owned 166 properties as of March 31, 2016 . The Company invests in medical office buildings ("MOB"), seniors housing communities and other healthcare-related facilities primarily to expand and diversify its portfolio and revenue base. The following table presents the allocation of the assets acquired during the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, (Dollar amounts in thousands) 2016 2015 Real estate investments, at cost: Land $ — $ 15,892 Buildings, fixtures and improvements — 102,168 Construction in progress 5,872 — Total tangible assets 5,872 118,060 Acquired intangibles: In-place leases — 14,286 Market lease liabilities — (4,722 ) Total assets and liabilities acquired, net 5,872 127,624 Mortgage notes payable assumed to acquire real estate investments — (31,536 ) Premiums on mortgages assumed — (2,535 ) Deposits for real estate acquisitions — (3,000 ) Cash paid for acquired real estate investments $ 5,872 $ 90,553 Number of properties purchased — 10 Acquired intangible assets and liabilities consisted of the following as of the periods presented: March 31, 2016 December 31, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: In-place leases $ 202,608 $ 91,868 $ 110,740 $ 202,608 $ 82,390 $ 120,218 Intangible market lease assets 28,262 4,013 24,249 28,262 3,393 24,869 Other intangible assets 10,589 375 10,214 10,589 309 10,280 Total acquired intangible assets $ 241,459 $ 96,256 $ 145,203 $ 241,459 $ 86,092 $ 155,367 Intangible market lease liabilities $ 25,613 $ 3,258 $ 22,355 $ 25,613 $ 2,619 $ 22,994 For the three months ended March 31, 2016 and 2015 , amortization of in-place leases and other intangible assets of $9.5 million and $18.3 million , respectively, is included in depreciation and amortization expense on the consolidated statements of operations and comprehensive loss. For the three months ended March 31, 2016 and 2015 , net amortization of intangible market lease assets and liabilities relating to assumed tenant leases of $0.1 million and approximately $38,000 , respectively, is deducted from rental income on the consolidated statements of operations and comprehensive loss. For the three months ended March 31, 2016 and 2015 , net amortization of intangible market lease assets and liabilities related to assumed leasehold interests of approximately $43,000 and $0.1 million , respectively, is included in property operating and maintenance expense on the consolidated statements of operations and comprehensive loss. The following table provides the projected amortization expense and adjustments to revenues for the next five years: (In thousands) April 1, 2016 — December 31, 2016 2017 2018 2019 2020 In-place lease assets $ 25,037 $ 16,322 $ 14,031 $ 11,465 $ 9,106 Other intangible assets 199 265 265 265 265 Total to be added to amortization expense $ 25,236 $ 16,587 $ 14,296 $ 11,730 $ 9,371 Above-market lease assets $ (1,642 ) $ (1,888 ) $ (1,367 ) $ (1,079 ) $ (737 ) Below-market lease liabilities 1,801 2,115 1,886 1,605 1,450 Total to be added to rental income $ 159 $ 227 $ 519 $ 526 $ 713 Below-market ground lease assets $ 159 $ 212 $ 212 $ 212 $ 212 Above-market ground lease liabilities (30 ) (39 ) (39 ) (39 ) (39 ) Total to be added to property operating and maintenance expense $ 129 $ 173 $ 173 $ 173 $ 173 The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of March 31, 2016 . These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items. (In thousands) Future Minimum April 1, 2016 — December 31, 2016 $ 71,180 2017 94,720 2018 89,971 2019 83,871 2020 77,696 Thereafter 511,921 Total $ 929,359 As of March 31, 2016 and 2015 , the Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or greater of total annualized rental income for the portfolio on a straight-line basis. The following table lists the states where the Company had concentrations of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of March 31, 2016 and 2015 : March 31, State 2016 2015 Florida 18.7% 23.6% Iowa 10.1% 13.0% Pennsylvania 11.7% 14.3% |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities As of March 31, 2016 and December 31, 2015 , the Company had investment securities with an aggregate fair value of $1.1 million . These investments are considered available-for-sale securities and, therefore, increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income as a component of equity on the consolidated balance sheets unless the securities are considered to be other than temporarily impaired, at which time the losses would be reclassified to expense. The following table details the unrealized gains and losses on investment securities as of March 31, 2016 and December 31, 2015 : (In thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2016 Equity securities $ 1,084 $ 11 $ (25 ) $ 1,070 December 31, 2015 Equity securities $ 1,084 $ 19 $ (25 ) $ 1,078 The Company's investments in preferred stock have not been in a continuous unrealized loss position during the last twelve months. The Company believes that the decline in fair value is a factor of current market conditions and, as such, considers the unrealized losses as of March 31, 2016 to be temporary. Therefore no impairment was recorded during the three months ended March 31, 2016 . During the three months ended March 31, 2015 , the Company sold certain of its investments in preferred stock and its investment in a senior note with a cost of $3.9 million for $4.2 million which resulted in a realized gain on sale of investment of $0.3 million . No investment securities were sold by the Company during the three months ended March 31, 2016 . The Company's preferred stock investments, with an aggregate fair value of $1.1 million as of March 31, 2016 , are redeemable at the respective issuer's option five years after issuance. |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On March 21, 2014, the Company entered into a senior secured credit facility in the amount of $50.0 million (the "Credit Facility"). On April 15, 2014 the amount available under the Credit Facility was increased to $200.0 million . On June 26, 2015, the Company entered into an amendment to the Credit Facility which, among other things, allowed for borrowings of up to $500.0 million . On July 31, 2015, the available borrowings were increased to $565.0 million . The Credit Facility also contains a subfacility for letters of credit of up to $25.0 million . The Credit Facility contains an "accordion" feature to allow the Company, under certain circumstances, to increase the aggregate borrowings under the Credit Facility to a maximum of $750.0 million . The Company has the option, based upon its leverage, to have the Credit Facility priced at either: (a) LIBOR, plus an applicable margin that ranges from 1.60% to 2.20% ; or (b) the Base Rate, plus an applicable margin that ranges from 0.35% to 0.95% . Base Rate is defined in the Credit Facility as the greater of (i) the fluctuating annual rate of interest announced from time to time by the lender as its “prime rate,” (ii) 0.5% above the federal funds effective rate or (iii) the applicable one-month LIBOR plus 1.0% . The Credit Facility provides for monthly interest payments for each Base Rate loan and periodic payments for each LIBOR loan, based upon the applicable LIBOR loan period, with all principal outstanding being due on the maturity date of March 21, 2019. The Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty (subject to standard breakage costs). In the event of a default, the lender has the right to terminate its obligations under the Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. As of March 31, 2016 , the balance outstanding under the Credit Facility was $460.0 million , with an effective interest rate of 2.7% . The Company's unused borrowing capacity was $105.0 million , based on assets assigned to the Credit Facility as of March 31, 2016 . Availability of borrowings is based on a pool of eligible unencumbered real estate assets. There was $430.0 million in advances outstanding as of December 31, 2015 . The Credit Facility requires the Company to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of March 31, 2016 , the Company was in compliance with the financial covenants under the Credit Facility. |
Mortgage Notes Payable
Mortgage Notes Payable | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable | Mortgage Notes Payable The following table reflects the Company's mortgage notes payable as of March 31, 2016 and 2015 : Outstanding Loan Amount as of Effective Interest Rate Portfolio Encumbered Properties March 31, 2016 December 31, 2015 Interest Rate Maturity (In thousands) (In thousands) Bowie Gateway Medical Center - Bowie, MD 1 $ 5,946 $ 5,969 6.18 % Fixed Sep. 2016 Medical Center of New Windsor - New Windsor, NY 1 8,691 8,720 6.39 % Fixed Sep. 2017 Plank Medical Center - Clifton Park, NY 1 3,449 3,461 6.39 % Fixed Sep. 2017 Cushing Center - Schenectady, NY — — 4,184 5.71 % Fixed Feb. 2016 Countryside Medical Arts - Safety Harbor, FL 1 5,970 5,992 6.07 % Fixed (1) Apr. 2019 St. Andrews Medical Park - Venice, FL 3 6,599 6,623 6.07 % Fixed (1) Apr. 2019 Campus at Crooks & Auburn Building C - Rochester Hills, MI 1 3,537 3,555 5.91 % Fixed Apr. 2016 Slingerlands Crossing Phase I - Bethlehem, NY 1 6,657 6,680 6.39 % Fixed Sep. 2017 Slingerlands Crossing Phase II - Bethlehem, NY 1 7,751 7,777 6.39 % Fixed Sep. 2017 Benedictine Cancer Center - Kingston, NY 1 6,788 6,811 6.39 % Fixed Sep. 2017 Aurora Healthcare Center Portfolio - WI 6 31,157 31,257 6.55 % Fixed Jan. 2018 Palm Valley Medical Plaza - Goodyear, AZ 1 3,501 3,525 4.21 % Fixed Jun. 2023 Medical Center V - Peoria, AZ 1 3,212 3,232 4.75 % Fixed Sep. 2023 Courtyard Fountains - Gresham, OR 1 24,999 24,999 3.82 % Fixed (2) Jan. 2020 Fox Ridge Bryant - Bryant, AR 1 7,794 7,825 3.98 % Fixed May 2047 Fox Ridge Chenal - Little Rock, AR 1 17,735 17,800 3.98 % Fixed May 2049 Fox Ridge North Little Rock - North Little Rock, AR 1 11,005 11,045 3.98 % Fixed May 2047 Gross mortgage notes payable 23 154,791 159,455 5.31 % (3) Deferred financing costs, net of accumulated amortization (1,988 ) (2,150 ) Mortgage notes payable, net of deferred financing costs $ 152,803 $ 157,305 _______________ (1) Fixed interest rate through May 10, 2017. Interest rate changes to variable rate starting in June 2017. (2) Interest only payments through July 1, 2016. Principal and interest payments starting in August 2016. (3) Calculated on a weighted average basis for all mortgages outstanding as of March 31, 2016 . As of March 31, 2016 , the Company had pledged $279.3 million in real estate as collateral for these mortgage notes payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable on the properties. Except as noted above, the Company makes payments of principal and interest on all of its mortgage notes payable on a monthly basis. The following table summarizes the scheduled aggregate principal payments on mortgage notes payable for the five years subsequent to March 31, 2016 : (In thousands) Future Principal Payments April 1, 2016 — December 31, 2016 $ 10,986 2017 34,832 2018 31,893 2019 13,324 2020 24,279 Thereafter 39,477 Total $ 154,791 Some of the Company's mortgage note agreements require the compliance with certain property-level financial covenants including debt service coverage ratios. As of March 31, 2016 , the Company was in compliance with the financial covenants under its mortgage note agreements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 — Unobservable inputs that reflect the entity's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. The Company has or had investments in common stock, redeemable preferred stock, real estate income funds and a senior note that are traded in active markets and therefore, due to the availability of quoted market prices in active markets, the Company has classified these investments as Level 1 in the fair value hierarchy. The following table presents information about the Company's assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those instruments fall. (In thousands) Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total March 31, 2016 Investment securities $ 1,070 $ — $ — $ 1,070 December 31, 2015 Investment securities $ 1,078 $ — $ — $ 1,078 The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, receivable for sale of common stock, straight-line rent receivable, prepaid expenses and other assets, deferred costs, net, accounts payable and accrued expenses, deferred rent and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below: Carrying Amount (1) at Fair Value at Carrying Amount (1) at Fair Value at (In thousands) Level March 31, March 31, December 31, December 31, Mortgage notes payable 3 $ 156,680 $ 159,802 $ 161,858 $ 162,654 Credit Facility 3 $ 460,000 $ 460,000 $ 430,000 $ 430,000 _______________________________ (1) Carrying value includes gross mortgage notes payable of $154.8 million and $159.5 million and mortgage premiums and discounts, net of $1.9 million and $2.4 million as of March 31, 2016 and December 31, 2015 , respectively. The fair value of the mortgage notes payable is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of borrowing arrangements. Advances under the Credit Facility are considered to be reported at fair value, because the Credit Facility's interest rate varies with changes in LIBOR. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Common Stock | Common Stock As of March 31, 2016 and December 31, 2015 , the Company had 86.9 million and 86.1 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP and had received total proceeds of $2.2 billion and $2.1 billion , respectively, including proceeds from shares issued pursuant to the DRIP. In April 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on a daily basis at a rate equal to $0.0046575343 per day, which is equivalent to $1.70 per annum, per share of common stock, which began in May 2013. In March 2016, the Company's board of directors ratified the existing distribution amount equivalent to $1.70 per annum, and, for calendar year 2016, affirmed a change to the daily distribution payable to stockholders of record each day during the applicable period to $0.0046448087 per day per share of common stock to accurately reflect that 2016 is a leap year. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The Company's board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured. Share Repurchase Program The Company's board of directors has adopted a Share Repurchase Program (as amended, the "SRP") which enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below. Prior to the time that the Company’s shares are listed on a national securities exchange and until the NAV Pricing Date (other than with respect to a repurchase request that is made in connection with a stockholder's death or disability), the repurchase price per share depends on the length of time investors have held such shares, as follows: after one year from the purchase date — the lower of $23.13 or 92.5% of the amount they actually paid for each share; after two years from the purchase date — the lower of $23.75 or 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.38 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 or 100.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations). In cases of requests for death and disability, the repurchase price will be equal to the price actually paid for each share. In accordance with the SRP Amendment (described below) and beginning with the NAV Pricing Date, the price per share that the Company will pay to repurchase its shares will be equal to its NAV multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95.0% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100.0% , if the person seeking repurchase has held his or her shares for a period greater than four years. In cases of requests for death and disability, the repurchase prices will be equal to NAV at the time of repurchase. Subject to limited exceptions, stockholders who redeem their shares of our common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received. Repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors. Until the SRP Amendment (described below), the Company limited the number of shares repurchased during any calendar year to 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, the Company was only authorized to repurchase shares in a given quarter up to the amount of proceeds received from its DRIP in that same quarter. On January 26, 2016, the Company's board of directors approved and amended the SRP (the "SRP Amendment") to supersede and replace the existing SRP. Under the SRP Amendment, repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the Company's board of directors and generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. In addition, the Company is only authorized to repurchase shares in a given fiscal semester up to the amount of proceeds received from its DRIP in that same fiscal semester. If the NAV Pricing Date occurs during any fiscal semester, any repurchase requests received during such fiscal semester will be paid at the applicable NAV then in effect. When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP will have the status of authorized but unissued shares. The following table reflects the number of shares repurchased cumulatively through March 31, 2016 : Number of Shares Repurchased Average Price per Share Cumulative repurchases as of December 31, 2015 (1) 968,370 $ 23.72 Three months ended March 31, 2016 (2) 6,660 24.36 Cumulative repurchases as of March 31, 2016 (1)(2) 975,030 $ 23.73 _____________________________ (1) Excludes rejected repurchases of 201,367 shares for $4.6 million at an average price per share of $23.04 were unfulfilled. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to March 31, 2016 . (2) Includes additional accrued repurchases consisting of 6,660 shares for $0.2 million at an average repurchase price per share of $24.36 , which were completed in April and May 2016 . The accrual for these repurchases is reflected in the accounts payable and accrued expenses line of the accompanying consolidated balance sheets. The additional shares will be deducted from the applicable limits of the SRP Amendment when processing share repurchases for the first fiscal semester of 2016. Distribution Reinvestment Plan Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased under the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from reinvestment pursuant to the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days' notice to participants. Shares issued under the DRIP are recorded as equity in the accompanying consolidated balance sheet in the period distributions are declared. During the three months ended March 31, 2016 and 2015 , the Company issued 0.8 million shares of common stock pursuant to the DRIP, generating aggregate proceeds of $19.1 million and $19.2 million , respectively. |
Related Party Transactions and
Related Party Transactions and Arrangements | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Related Party Transactions and Arrangements As of March 31, 2016 and December 31, 2015 , the Special Limited Partner owned 8,888 shares of the Company's outstanding common stock. The Advisor and its affiliates may incur and pay costs and fees on behalf of the Company. Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the IPO. American National Stock Transfer, LLC ("ANST"), a subsidiary of the parent company of the Former Dealer Manager, provided other general professional services through January 2016. RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's Sponsor. On January 14, 2015, the Company purchased the Acuity Specialty Hospital portfolio from American Realty Capital Healthcare Trust, Inc. ("HCT") for a contract purchase price of $39.4 million . At the time of such purchase, the Sponsor and Advisor and the sponsor and advisor of HCT were under common control. The limited partnership agreement of the OP provides for a special allocation, solely for tax purposes, of excess depreciation deductions of up to $10.0 million to the Company's Advisor, a limited partner of the OP. In connection with this special allocation, the Company's Advisor has agreed to restore a deficit balance in its capital account in the event of a liquidation of the OP and has agreed to provide a guaranty or indemnity of indebtedness of the OP. Fees Paid in Connection with the IPO The Former Dealer Manager was paid fees in connection with the sale of the Company's common stock in the IPO. The Company paid the Former Dealer Manager a selling commission of up to 7.0% of the per share purchase price of offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Company paid the Former Dealer Manager up to 3.0% of the gross proceeds from the sale of shares, before reallowance to participating broker-dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to participating broker-dealers. A participating broker-dealer could elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares by such participating broker-dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option had been elected, the dealer manager fee would have been reduced to 2.5% of gross proceeds. During the three months ended March 31, 2015 , the Company received approximately $2,000 from the Former Dealer Manager for a unconsummated share transaction. The Company did not incur any commissions or fees in connection with the sale of the Company's common stock in the IPO from the Former Dealer Manager during the three months ended March 31, 2016 . The Company did not have any amounts outstanding to the Former Dealer Manager for fees in connection with the sale of the Company's common stock in the IPO as of March 31, 2016 or December 31, 2015 . The Advisor and its affiliates received compensation and reimbursement for services relating to the IPO, including transfer agent services provided by an affiliate of the Former Dealer Manager. All offering costs incurred by the Company or its affiliated entities on behalf of the Company were charged to additional paid-in capital on the accompanying balance sheet during the IPO. The Company did not incur any charges or reimbursements for services relating to the IPO from the Advisor or any of its affiliates during the three months ended March 31, 2016 or 2015 . The Company did not have any amounts outstanding to the Advisor or any of its affiliates for charges or reimbursements for services relating to the IPO as of March 31, 2016 or December 31, 2015 . The Company was responsible for paying offering and related costs from the IPO, excluding commissions and dealer manager fees, up to a maximum of 2.0% of gross proceeds received from the IPO, measured at the end of the IPO. Offering costs, excluding selling commissions and dealer manager fees, in excess of the 2.0% cap as of the end of the IPO were to be the Advisor's responsibility. As of the end of the IPO, offering and related costs, excluding selling commissions and dealer manager fees, did not exceed 2.0% of gross proceeds received from the IPO. In aggregate, offering costs including selling commissions and dealer manager fees were the Company's responsibility up to a maximum of 12.0% of the gross proceeds received from the IPO as determined at the end of the IPO. As of the end of the IPO in November 2014, offering costs were less than 12.0% of the gross proceeds received in the IPO. Fees Paid in Connection With the Operations of the Company The Advisor is paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. The Advisor is also reimbursed for services provided for which it incurs investment-related expenses, or insourced expenses. The amount reimbursed for insourced expenses may not exceed 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company reimburses the Advisor for third party acquisition expenses. The aggregate amount of acquisition fees and financing coordination fees (as described below) may not exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. In no event will the total of all acquisition fees, acquisition expenses and any financing coordination fees payable with respect to the Company's portfolio of investments or reinvestments exceed 4.5% of the contract purchase price of the Company's portfolio to be measured at the close of the acquisition phase or 4.5% of the amount advanced for all loans or other investments. If the Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations. Until March 31, 2015, for its asset management services, the Company issued the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units were intended to be profit interests and vest, and are no longer subject to forfeiture, at such time as: (x) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); (y) any one of the following occurs: (1) a listing; (2) an other liquidity event or (3) the termination of the advisory agreement by an affirmative vote of a majority of the Company's independent directors without cause; and (z) the Advisor is still providing advisory services to the Company (the "performance condition"). Unvested Class B Units will be forfeited immediately if: (a) the advisory agreement is terminated for any reason other than a termination without cause; or (b) the advisory agreement is terminated by an affirmative vote of a majority of the Company's independent directors without cause before the economic hurdle has been met. When approved by the board of directors, the Class B Units were issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter was equal to: (i) the excess of (A) the product of (y) the cost of assets multiplied by (z) 0.1875% over (B) any amounts payable as an oversight fee (as described below) for such calendar quarter; divided by (ii) the value of one share of common stock as of the last day of such calendar quarter, which is equal initially to $22.50 (the IPO price minus the selling commissions and dealer manager fees). The value of issued Class B Units will be determined and expensed when the Company deems the achievement of the performance condition to be probable. As of March 31, 2016 , the Company cannot determine the probability of achieving the performance condition. The Advisor receives distributions on vested and unvested Class B Units equal to the distribution rate received on the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the consolidated statement of operations and comprehensive loss until the performance condition is considered probable to occur. As of March 31, 2016 , the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. On May 12, 2015, the Company, the OP and the Advisor entered into an amendment (the “Amendment”) to the advisory agreement, which, among other things, provides that the Company will cease causing the OP to issue Class B Units in the OP to the Advisor or its assignees related to any period ending after March 31, 2015. Effective April 1, 2015, the Company began paying an asset management fee to the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets. The asset management fee is payable on the first business day of each month in the amount of 0.0625% multiplied by the cost of assets for the preceding monthly period. The asset management fee is payable to the Advisor or its assignees in cash, in shares, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. For the purposes of the payment of any fees in shares (a) prior to the NAV Pricing Date, each share will be valued at $22.50 , (b) after the NAV Pricing Date and prior to any listing on a national securities exchange, if it occurs, each share will be valued at the then-current NAV per share and (c) at all other times, each share shall be valued by the board of directors in good faith at the fair market value. Unless the Company contracts with a third party, the Company pays the Property Manager a property management fee of 1.5% of gross revenues from the Company's stand-alone single-tenant net leased properties and 2.5% of gross revenues from all other types of properties, respectively. The Company also reimburses the Property Manager for property level expenses. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and will pay the Property Manager an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event will the Company pay the Property Manager or any affiliate of the Property Manager both a property management fee and an oversight fee with respect to any particular property. Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. Strategic advisory fees were amortized over the estimated remaining term of the IPO and, as such, have been fully amortized as of December 31, 2014. The Former Dealer Manager and its affiliates also previously provided transfer agency services, as well as transaction management and other professional services. These fees were included in general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss. The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented: Three Months Ended March 31, Payable (Receivable) as of 2016 2015 March 31, December 31, (In thousands) Incurred Forgiven Incurred Forgiven 2016 2015 One-time fees and reimbursements: Acquisition fees $ — $ — $ 857 $ — $ — $ — Acquisition cost reimbursements — — 429 — — — Financing coordination fees — — 236 — — — Ongoing fees: Asset management fees (1) 4,384 — — — — (5 ) Property management fees 771 — — 589 (5 ) (10 ) Professional fees and reimbursements 1,003 — 857 — 786 499 Distributions on Class B Units 152 — 45 — — 52 Total related party operation fees and reimbursements $ 6,310 $ — $ 2,424 $ 589 $ 781 $ 536 _______________ (1) Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the board of directors) to the Advisor restricted performance based Class B Units for asset management services. As of March 31, 2016 , the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, in connection with the Amendment, the Company will pay an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and will no longer issue any Class B Units. The Company reimburses the Advisor's costs of providing administrative services, subject to the limitation that the Company did not reimburse the Advisor for any amount by which the Company's operating expenses at the end of the four preceding fiscal quarters exceeded the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash expenses and excluding any gain from the sale of assets for that period (the "2%/25% Limitation"), unless the Company's independent directors determined that such excess was justified based on unusual and nonrecurring factors which they deemed sufficient, in which case the excess amount could be reimbursed to the Advisor in subsequent periods. Additionally, the Company reimburses the Advisor for personnel costs; however, the Company may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions or for persons serving as executive officers of the Company. The 2%/25% Limitation was removed from the advisory agreement in connection with the amendment and restatement of to the advisory agreement in June 2015. In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive and absorb certain fees. Because the Advisor may forgive or absorb certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that are forgiven are not deferrals and, accordingly, will not be paid to the Advisor in the future. During the three months ended March 31, 2015 , the Advisor elected to forgive $0.6 million in fees. There were no such fees forgiven during the three months ended March 31, 2016 . In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's property operating and general and administrative costs, which the Company will not repay. No such fees were absorbed during the three months ended March 31, 2016 or 2015 . The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory. The Company was also party to a transfer agency agreement with ANST, a subsidiary of the parent company of the Former Dealer Manager, pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by DST Systems, Inc., a third-party transfer agent ("DST"). AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services). Fees and Participations Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets Fees Incurred in Connection with a Listing In 2015, the Company’s board of directors determined that it was in the Company’s best interest to evaluate strategic alternatives, including a listing on a national securities exchange. Accordingly, in March 2015, the Company formally engaged KeyBanc Capital Markets Inc. ("KeyBanc") and RCS Capital ("RCS Capital"), the investment banking and capital markets division of the Former Dealer Manager, and in May 2015, the Company formally engaged BMO Capital Markets Corp. ("BMO"), as financial advisors. Pursuant to the agreements with KeyBanc, BMO and RCS Capital, they each would have received a listing advisory fee equal to $1.5 million if the Company's shares were listed on a national securities exchange. In the event of a sale or acquisition transaction, KeyBanc, BMO and RCS Capital each would have received a proposed transaction fee equal to 0.25% of the value of the transaction. The agreements with KeyBanc, RCS Capital and BMO were terminated in January 2016. No fees were incurred in connection with these agreements during the three months ended March 31, 2016 or 2015 . The Company’s board of directors, led by its independent directors, announced in April 2016 that it had initiated a strategic review process to identify, examine and consider a range of strategic alternatives available to the Company with the objective of maximizing shareholder value. See Note 16 — Subsequent Events — Review of Strategic Alternatives. Other Liquidation Related Fees and Participations The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of the Company's total return to stockholders, payable annually in arrears, such that for any year in which the Company's total return on stockholders' capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return but not to exceed 10.0% of the aggregate total return for such year. This fee will be paid only upon the sale of assets, distributions or other event which results in the return on stockholders' capital exceeding 6.0% per annum. No subordinated performance fees were incurred during the three months ended March 31, 2016 or 2015 . The Company will pay the Advisor a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and 50.0% of the total brokerage commission paid if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such fees were incurred during the three months ended March 31, 2016 or 2015 . The Special Limited Partner will be entitled to receive a subordinated participation in the net sales proceeds of the sale of real estate assets from the OP equal to 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 6.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors. The Special Limited Partner will not be entitled to the subordinated participation in net sale proceeds unless the Company's investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such participation in net sales proceeds became due and payable during the three months ended March 31, 2016 or 2015 . If the common stock of the Company is listed on a national exchange, the Special Limited Partner will be entitled to receive a subordinated incentive listing distribution from the OP equal to 15.0% of the amount by which the adjusted market value of real estate assets plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax non-compounded annual return to investors. The Special Limited Partner will not be entitled to the subordinated incentive listing distribution unless investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such distribution was incurred during the three months ended March 31, 2016 or 2015 . Neither the Special Limited Partner nor any of its affiliates can earn both the subordinated participation in the net sales proceeds and the subordinated incentive listing distribution. Upon termination or non-renewal of the advisory agreement with the Advisor, with or without cause, the Special Limited Partner will be entitled to receive distributions from the OP equal to 15.0% of the amount by which the sum of the Company's market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, pre-tax, non-compounded annual return to investors. The Special Limited Partner may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs. |
Economic Dependency
Economic Dependency | 3 Months Ended |
Mar. 31, 2016 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company and asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting services and investor relations. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that the Advisor and its affiliates are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation Restricted Share Plan The Company has an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further approval by the Company's board of directors or the stockholders, after initial election to the board of directors and after each annual stockholder meeting, with such shares vesting annually beginning with the one year anniversary of initial election to the board of directors and the date of the next annual meeting, respectively. Restricted stock issued to independent directors will vest over a five -year period in increments of 20.0% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The total number of common shares granted under the RSP may not exceed 5.0% of the Company's outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events). Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to July 1, 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. For restricted share awards granted on or after July 1, 2015, such awards provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock shall be subject to the same restrictions as the underlying restricted shares. The following table reflects restricted share award activity for the period presented: Number of Common Shares Weighted-Average Issue Price Unvested, December 31, 2015 11,731 $ 22.50 Granted — — Vested (800 ) 22.50 Forfeitures — — Unvested, March 31, 2016 10,931 $ 22.50 As of March 31, 2016 , the Company had $0.2 million of unrecognized compensation cost related to unvested restricted share awards granted under the Company's RSP. That cost is expected to be recognized over a weighted-average period of 3.5 years . Compensation expense related to restricted stock was approximately $15,000 and $1,000 during the three months ended March 31, 2016 and 2015 , respectively. Compensation expense related to restricted stock is recorded as general and administrative expense in the accompanying consolidated statement of operations and comprehensive loss. Other Share-Based Compensation The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at the respective director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. No such shares were issued during the three months ended March 31, 2016 or 2015 . |
Non-controlling Interests
Non-controlling Interests | 3 Months Ended |
Mar. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Non-controlling Interests The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP ("OP Units"). As of March 31, 2016 and 2015 , the Advisor held 90 OP Units, which represents a nominal percentage of the aggregate OP ownership. In November 2014, the Company partially funded the purchase of an MOB with the issuance of 405,908 OP Units, with a value of $10.1 million or $25.00 per unit, from an unaffiliated third party. A holder of OP Units has the right to distributions and has the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP, provided, however, that such OP Units must have been outstanding for at least one year. The remaining rights of the limited partners in the OP are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets. During the three months ended March 31, 2016 and 2015 , non-controlling interest holders were paid distributions of $0.2 million . The Company has an investment arrangement with an unaffiliated third party whereby such investor receives an ownership interest in certain of the Company's property-owning subsidiaries and is entitled to receive a proportionate share of the net operating cash flow derived from the subsidiaries' property. Upon disposition of a property subject to non-controlling interest, the investor will receive a proportionate share of the net proceeds from the sale of the property. The investor has no recourse to any other assets of the Company. Due to the nature of the Company's involvement with the arrangement and the significance of its investment in relation to the investment of the third party, the Company has determined that it controls each entity in this arrangement and therefore the entities related to this arrangement are consolidated within the Company's financial statements. A non-controlling interest is recorded for the investor's ownership interest in the properties. The following table summarizes the activity related to investment arrangements with the unaffiliated third party: As of March 31, 2016 As of December 31, 2015 Distributions for the Three Months Ended March, 31 Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of March 31, 2016 Non-Controlling Ownership Percentage as of March 31, 2016 Net Real Estate Assets Subject to Investment Arrangement Mortgage Notes Payable Subject to Investment Arrangement Net Real Estate Assets Subject to Investment Arrangement Mortgage Notes Payable Subject to Investment Arrangement 2016 2015 Plaza Del Rio Medical Office Campus Portfolio - Peoria, AZ May 2015 $ 500 4.1 % $ 10,577 $ — $ 10,561 $ — $ — $ — |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following is a summary of the basic and diluted net loss per share computation for the years ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Net loss attributable to stockholders (in thousands) $ (1,555 ) $ (5,220 ) Basic and diluted weighted-average shares outstanding 86,658,678 84,250,503 Basic and diluted net loss per share $ (0.02 ) $ (0.06 ) The Company had the following potentially dilutive securities as of March 31, 2016 and 2015 , which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive: March 31, 2016 2015 Unvested restricted stock 10,931 5,599 OP Units 405,998 405,998 Class B units 359,250 107,885 Total common share equivalents 776,179 519,482 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting During the three months ended March 31, 2016 and 2015 , the Company operated in three reportable business segments for management and internal financial reporting purposes: medical office buildings, triple-net leased healthcare facilities, and seniors housing — operating properties ("SHOP"). These operating segments are the segments of the Company for which separate financial information is available and for which segment results are evaluated by the Company's executive officers in deciding how to allocate resources and in assessing performance. The medical office building segment primarily consists of MOBs leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses. The triple-net leased healthcare facilities segment primarily consists of investments in seniors housing communities, hospitals, inpatient rehabilitation facilities and skilled nursing facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses. The SHOP segment consists of direct investments in seniors housing communities, primarily providing assisted living, independent living and memory care services, which are operated through engaging independent third-party managers. The Company evaluates the performance of the combined properties in each segment based on net operating income. Net operating income is defined as total revenues less property operating and maintenance expenses. There are no intersegment sales or transfers. The Company uses net operating income to evaluate the operating performance of real estate investments and to make decisions concerning the operation of the properties. The Company believes that net operating income is useful to investors in understanding the value of income-producing real estate. Net income (loss) is the GAAP measure that is most directly comparable to net operating income; however, net operating income should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes certain items such as operating fees to the Advisor, acquisition and transaction related expenses, general and administrative expenses, depreciation and amortization expense, interest expense, interest and other income, gain on sale of investment securities, and income tax expense. Additionally, net operating income as defined by the Company may not be comparable to net operating income as defined by other REITs or companies. The following tables reconcile the segment activity to consolidated net loss for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 16,603 $ 9,989 $ — $ 26,592 Operating expense reimbursements 3,677 32 — 3,709 Resident services and fee income — — 45,202 45,202 Contingent purchase price consideration 6 — — 6 Total revenues 20,286 10,021 45,202 75,509 Property operating and maintenance 5,771 636 32,385 38,792 Net operating income $ 14,515 $ 9,385 $ 12,817 36,717 Operating fees to related parties (5,155 ) Acquisition and transaction related (42 ) General and administrative (3,987 ) Depreciation and amortization (24,615 ) Interest expense (4,984 ) Interest and other income 22 Income tax benefit (expense) 483 Net loss attributable to non-controlling interests 6 Net loss attributable to stockholders $ (1,555 ) Three Months Ended March 31, 2015 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 11,480 $ 9,376 $ — $ 20,856 Operating expense reimbursements 3,098 32 — 3,130 Resident services and fee income — — 33,135 33,135 Total revenues 14,578 9,408 33,135 57,121 Property operating and maintenance 4,849 72 22,556 27,477 Net operating income $ 9,729 $ 9,336 $ 10,579 29,644 Acquisition and transaction related (1,999 ) General and administrative (2,599 ) Depreciation and amortization (29,448 ) Interest expense (1,373 ) Interest and other income 273 Gain on sale of investment securities 286 Income tax benefit (expense) (29 ) Net loss attributable to non-controlling interests 25 Net loss attributable to stockholders $ (5,220 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: March 31, December 31, (In thousands) 2016 2015 ASSETS Investments in real estate, net: Medical office buildings $ 829,928 $ 839,041 Triple-net leased healthcare facilities 443,888 447,893 Construction in progress 37,180 31,309 Seniors housing — operating properties 865,895 876,359 Total investments in real estate, net 2,176,891 2,194,602 Cash and cash equivalents 36,509 24,474 Restricted cash 4,299 4,647 Investment securities, at fair value 1,070 1,078 Straight-line rent receivable, net 13,927 11,470 Prepaid expenses and other assets 22,237 21,707 Deferred costs, net 11,094 11,864 Total assets $ 2,266,027 $ 2,269,842 The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented: Three Months Ended March 31, (In thousands) 2016 2015 Medical office buildings $ 664 $ 445 Triple-net leased healthcare facilities 99 60 Seniors housing — operating properties 1,050 162 Total capital expenditures $ 1,813 $ 667 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has entered into operating and capital lease agreements related to certain acquisitions under leasehold interests arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter under these arrangements, including the present value of the net minimum payment due under capital leases. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items. Future Minimum Base Rent Payments (In thousands) Operating Leases Capital Leases April 1, 2016 — December 31, 2016 $ 497 $ 56 2017 664 76 2018 668 78 2019 673 80 2020 671 82 Thereafter 79,997 7,847 Total minimum lease payments $ 83,170 8,219 Less: amounts representing interest (3,414 ) Total present value of minimum lease payments $ 4,805 Total rental expense from operating leases was $0.2 million and $0.1 million during the three months ended March 31, 2016 and 2015 , respectively. During the three months ended March 31, 2016 and 2015 , interest expense related to capital leases was approximately $21,000 . Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company or its properties. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. As of March 31, 2016 , the Company had not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations. Development Project Funding In August 2015, the Company entered into an asset purchase agreement and development agreement to acquire land and construction in progress, and subsequently fund the remaining construction, of a skilled nursing facility in Jupiter, Florida for $82.0 million . As of March 31, 2016 , the Company had funded $10.0 million and $27.2 million for the land and construction in progress, respectively. Concurrent with the acquisition, the Company entered into a loan agreement and lease agreement with an affiliate of the project developer. The loan agreement is intended to provide working capital to the tenant during the initial operating period of the facility and allows for borrowings of up to $2.7 million from the Company on a non-revolving basis. Any outstanding principal balances under the loan will bear interest at 7.0% per year, payable on the first day of each fiscal quarter. As of March 31, 2016 , there were no amounts outstanding due to the Company pursuant to the loan agreement. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q , and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following: Net Asset Value On April 11, 2016, the Company's board of directors approved an estimate of per share NAV. As of this date, the Company began offering shares pursuant to the DRIP at the then-current NAV approved by the Company's board of directors. Review of Strategic Alternatives The Company's board of directors, led by its independent directors, announced on April 22, 2016 that it had initiated a strategic review process to identify, examine, and consider a range of strategic alternatives available to the Company with the objective of maximizing shareholder value. In connection with such process, the Company's board of directors has, among other things, (i) formed a special committee to address conflicts of interest; (ii) engaged financial advisors; and (iii) retained Gibson, Dunn & Crutcher LLP as special legal counsel for the process. The board of directors has not made a decision to enter into any transaction at this time, and there are no assurances that the consideration of strategic alternatives will result in any transaction. The Company does not intend to comment on or disclose developments regarding the process unless it deems further disclosure is appropriate or required. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior year amounts within rental income, resident services and fee income, cash flows from operating activities and cash flows from financing activities have been reclassified to conform with the current year presentation. |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company are presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. |
Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company are presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance. In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption was permitted provided that the guidance was applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations and cash flows. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of this new guidance on its consolidated financial statements and has determined that the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company’s partnership interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, this standard did not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance resulted in the reclassification of $2.0 million and $2.2 million of deferred financing costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable, net of deferred financing costs in the Company's consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively. In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance. In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016 and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate Investments, Net [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table presents the allocation of the assets acquired during the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, (Dollar amounts in thousands) 2016 2015 Real estate investments, at cost: Land $ — $ 15,892 Buildings, fixtures and improvements — 102,168 Construction in progress 5,872 — Total tangible assets 5,872 118,060 Acquired intangibles: In-place leases — 14,286 Market lease liabilities — (4,722 ) Total assets and liabilities acquired, net 5,872 127,624 Mortgage notes payable assumed to acquire real estate investments — (31,536 ) Premiums on mortgages assumed — (2,535 ) Deposits for real estate acquisitions — (3,000 ) Cash paid for acquired real estate investments $ 5,872 $ 90,553 Number of properties purchased — 10 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Acquired intangible assets and liabilities consisted of the following as of the periods presented: March 31, 2016 December 31, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: In-place leases $ 202,608 $ 91,868 $ 110,740 $ 202,608 $ 82,390 $ 120,218 Intangible market lease assets 28,262 4,013 24,249 28,262 3,393 24,869 Other intangible assets 10,589 375 10,214 10,589 309 10,280 Total acquired intangible assets $ 241,459 $ 96,256 $ 145,203 $ 241,459 $ 86,092 $ 155,367 Intangible market lease liabilities $ 25,613 $ 3,258 $ 22,355 $ 25,613 $ 2,619 $ 22,994 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table provides the projected amortization expense and adjustments to revenues for the next five years: (In thousands) April 1, 2016 — December 31, 2016 2017 2018 2019 2020 In-place lease assets $ 25,037 $ 16,322 $ 14,031 $ 11,465 $ 9,106 Other intangible assets 199 265 265 265 265 Total to be added to amortization expense $ 25,236 $ 16,587 $ 14,296 $ 11,730 $ 9,371 Above-market lease assets $ (1,642 ) $ (1,888 ) $ (1,367 ) $ (1,079 ) $ (737 ) Below-market lease liabilities 1,801 2,115 1,886 1,605 1,450 Total to be added to rental income $ 159 $ 227 $ 519 $ 526 $ 713 Below-market ground lease assets $ 159 $ 212 $ 212 $ 212 $ 212 Above-market ground lease liabilities (30 ) (39 ) (39 ) (39 ) (39 ) Total to be added to property operating and maintenance expense $ 129 $ 173 $ 173 $ 173 $ 173 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of March 31, 2016 . These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items. (In thousands) Future Minimum April 1, 2016 — December 31, 2016 $ 71,180 2017 94,720 2018 89,971 2019 83,871 2020 77,696 Thereafter 511,921 Total $ 929,359 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table lists the states where the Company had concentrations of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of March 31, 2016 and 2015 : March 31, State 2016 2015 Florida 18.7% 23.6% Iowa 10.1% 13.0% Pennsylvania 11.7% 14.3% |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following table details the unrealized gains and losses on investment securities as of March 31, 2016 and December 31, 2015 : (In thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2016 Equity securities $ 1,084 $ 11 $ (25 ) $ 1,070 December 31, 2015 Equity securities $ 1,084 $ 19 $ (25 ) $ 1,078 |
Mortgage Notes Payable (Tables)
Mortgage Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table reflects the Company's mortgage notes payable as of March 31, 2016 and 2015 : Outstanding Loan Amount as of Effective Interest Rate Portfolio Encumbered Properties March 31, 2016 December 31, 2015 Interest Rate Maturity (In thousands) (In thousands) Bowie Gateway Medical Center - Bowie, MD 1 $ 5,946 $ 5,969 6.18 % Fixed Sep. 2016 Medical Center of New Windsor - New Windsor, NY 1 8,691 8,720 6.39 % Fixed Sep. 2017 Plank Medical Center - Clifton Park, NY 1 3,449 3,461 6.39 % Fixed Sep. 2017 Cushing Center - Schenectady, NY — — 4,184 5.71 % Fixed Feb. 2016 Countryside Medical Arts - Safety Harbor, FL 1 5,970 5,992 6.07 % Fixed (1) Apr. 2019 St. Andrews Medical Park - Venice, FL 3 6,599 6,623 6.07 % Fixed (1) Apr. 2019 Campus at Crooks & Auburn Building C - Rochester Hills, MI 1 3,537 3,555 5.91 % Fixed Apr. 2016 Slingerlands Crossing Phase I - Bethlehem, NY 1 6,657 6,680 6.39 % Fixed Sep. 2017 Slingerlands Crossing Phase II - Bethlehem, NY 1 7,751 7,777 6.39 % Fixed Sep. 2017 Benedictine Cancer Center - Kingston, NY 1 6,788 6,811 6.39 % Fixed Sep. 2017 Aurora Healthcare Center Portfolio - WI 6 31,157 31,257 6.55 % Fixed Jan. 2018 Palm Valley Medical Plaza - Goodyear, AZ 1 3,501 3,525 4.21 % Fixed Jun. 2023 Medical Center V - Peoria, AZ 1 3,212 3,232 4.75 % Fixed Sep. 2023 Courtyard Fountains - Gresham, OR 1 24,999 24,999 3.82 % Fixed (2) Jan. 2020 Fox Ridge Bryant - Bryant, AR 1 7,794 7,825 3.98 % Fixed May 2047 Fox Ridge Chenal - Little Rock, AR 1 17,735 17,800 3.98 % Fixed May 2049 Fox Ridge North Little Rock - North Little Rock, AR 1 11,005 11,045 3.98 % Fixed May 2047 Gross mortgage notes payable 23 154,791 159,455 5.31 % (3) Deferred financing costs, net of accumulated amortization (1,988 ) (2,150 ) Mortgage notes payable, net of deferred financing costs $ 152,803 $ 157,305 _______________ (1) Fixed interest rate through May 10, 2017. Interest rate changes to variable rate starting in June 2017. (2) Interest only payments through July 1, 2016. Principal and interest payments starting in August 2016. (3) Calculated on a weighted average basis for all mortgages outstanding as of March 31, 2016 . |
Schedule of Maturities of Long-term Debt | The following table summarizes the scheduled aggregate principal payments on mortgage notes payable for the five years subsequent to March 31, 2016 : (In thousands) Future Principal Payments April 1, 2016 — December 31, 2016 $ 10,986 2017 34,832 2018 31,893 2019 13,324 2020 24,279 Thereafter 39,477 Total $ 154,791 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents information about the Company's assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 , aggregated by the level in the fair value hierarchy within which those instruments fall. (In thousands) Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total March 31, 2016 Investment securities $ 1,070 $ — $ — $ 1,070 December 31, 2015 Investment securities $ 1,078 $ — $ — $ 1,078 |
Fair Value, by Balance Sheet Grouping | The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below: Carrying Amount (1) at Fair Value at Carrying Amount (1) at Fair Value at (In thousands) Level March 31, March 31, December 31, December 31, Mortgage notes payable 3 $ 156,680 $ 159,802 $ 161,858 $ 162,654 Credit Facility 3 $ 460,000 $ 460,000 $ 430,000 $ 430,000 _______________________________ (1) Carrying value includes gross mortgage notes payable of $154.8 million and $159.5 million and mortgage premiums and discounts, net of $1.9 million and $2.4 million as of March 31, 2016 and December 31, 2015 , respectively. |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table reflects the number of shares repurchased cumulatively through March 31, 2016 : Number of Shares Repurchased Average Price per Share Cumulative repurchases as of December 31, 2015 (1) 968,370 $ 23.72 Three months ended March 31, 2016 (2) 6,660 24.36 Cumulative repurchases as of March 31, 2016 (1)(2) 975,030 $ 23.73 _____________________________ (1) Excludes rejected repurchases of 201,367 shares for $4.6 million at an average price per share of $23.04 were unfulfilled. There were no other unfulfilled share repurchases for the period from October 15, 2012 (date of inception) to March 31, 2016 . (2) Includes additional accrued repurchases consisting of 6,660 shares for $0.2 million at an average repurchase price per share of $24.36 , which were completed in April and May 2016 . The accrual for these repurchases is reflected in the accounts payable and accrued expenses line of the accompanying consolidated balance sheets. |
Related Party Transactions an29
Related Party Transactions and Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services | The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented: Three Months Ended March 31, Payable (Receivable) as of 2016 2015 March 31, December 31, (In thousands) Incurred Forgiven Incurred Forgiven 2016 2015 One-time fees and reimbursements: Acquisition fees $ — $ — $ 857 $ — $ — $ — Acquisition cost reimbursements — — 429 — — — Financing coordination fees — — 236 — — — Ongoing fees: Asset management fees (1) 4,384 — — — — (5 ) Property management fees 771 — — 589 (5 ) (10 ) Professional fees and reimbursements 1,003 — 857 — 786 499 Distributions on Class B Units 152 — 45 — — 52 Total related party operation fees and reimbursements $ 6,310 $ — $ 2,424 $ 589 $ 781 $ 536 _______________ (1) Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the board of directors) to the Advisor restricted performance based Class B Units for asset management services. As of March 31, 2016 , the Company's board of directors had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, in connection with the Amendment, the Company will pay an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and will no longer issue any Class B Units. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table reflects restricted share award activity for the period presented: Number of Common Shares Weighted-Average Issue Price Unvested, December 31, 2015 11,731 $ 22.50 Granted — — Vested (800 ) 22.50 Forfeitures — — Unvested, March 31, 2016 10,931 $ 22.50 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the basic and diluted net loss per share computation for the years ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Net loss attributable to stockholders (in thousands) $ (1,555 ) $ (5,220 ) Basic and diluted weighted-average shares outstanding 86,658,678 84,250,503 Basic and diluted net loss per share $ (0.02 ) $ (0.06 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company had the following potentially dilutive securities as of March 31, 2016 and 2015 , which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive: March 31, 2016 2015 Unvested restricted stock 10,931 5,599 OP Units 405,998 405,998 Class B units 359,250 107,885 Total common share equivalents 776,179 519,482 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables reconcile the segment activity to consolidated net loss for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 16,603 $ 9,989 $ — $ 26,592 Operating expense reimbursements 3,677 32 — 3,709 Resident services and fee income — — 45,202 45,202 Contingent purchase price consideration 6 — — 6 Total revenues 20,286 10,021 45,202 75,509 Property operating and maintenance 5,771 636 32,385 38,792 Net operating income $ 14,515 $ 9,385 $ 12,817 36,717 Operating fees to related parties (5,155 ) Acquisition and transaction related (42 ) General and administrative (3,987 ) Depreciation and amortization (24,615 ) Interest expense (4,984 ) Interest and other income 22 Income tax benefit (expense) 483 Net loss attributable to non-controlling interests 6 Net loss attributable to stockholders $ (1,555 ) Three Months Ended March 31, 2015 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 11,480 $ 9,376 $ — $ 20,856 Operating expense reimbursements 3,098 32 — 3,130 Resident services and fee income — — 33,135 33,135 Total revenues 14,578 9,408 33,135 57,121 Property operating and maintenance 4,849 72 22,556 27,477 Net operating income $ 9,729 $ 9,336 $ 10,579 29,644 Acquisition and transaction related (1,999 ) General and administrative (2,599 ) Depreciation and amortization (29,448 ) Interest expense (1,373 ) Interest and other income 273 Gain on sale of investment securities 286 Income tax benefit (expense) (29 ) Net loss attributable to non-controlling interests 25 Net loss attributable to stockholders $ (5,220 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: March 31, December 31, (In thousands) 2016 2015 ASSETS Investments in real estate, net: Medical office buildings $ 829,928 $ 839,041 Triple-net leased healthcare facilities 443,888 447,893 Construction in progress 37,180 31,309 Seniors housing — operating properties 865,895 876,359 Total investments in real estate, net 2,176,891 2,194,602 Cash and cash equivalents 36,509 24,474 Restricted cash 4,299 4,647 Investment securities, at fair value 1,070 1,078 Straight-line rent receivable, net 13,927 11,470 Prepaid expenses and other assets 22,237 21,707 Deferred costs, net 11,094 11,864 Total assets $ 2,266,027 $ 2,269,842 The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented: Three Months Ended March 31, (In thousands) 2016 2015 Medical office buildings $ 664 $ 445 Triple-net leased healthcare facilities 99 60 Seniors housing — operating properties 1,050 162 Total capital expenditures $ 1,813 $ 667 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Future Minimum Base Rent Payments (In thousands) Operating Leases Capital Leases April 1, 2016 — December 31, 2016 $ 497 $ 56 2017 664 76 2018 668 78 2019 673 80 2020 671 82 Thereafter 79,997 7,847 Total minimum lease payments $ 83,170 8,219 Less: amounts representing interest (3,414 ) Total present value of minimum lease payments $ 4,805 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) $ / shares in Units, ft² in Millions | 3 Months Ended | 39 Months Ended | 42 Months Ended | ||
Mar. 31, 2016USD ($)ft²propertystate$ / shares | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)$ / shares | Mar. 31, 2016USD ($)ft²propertystate$ / shares | Feb. 28, 2013USD ($)$ / shares | |
Class of Stock [Line Items] | |||||
Number of Properties | property | 166 | 166 | |||
Number of states properties are located in | state | 29 | 29 | |||
Rentable square feet | ft² | 8.5 | 8.5 | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Proceeds from issuance of common stock | $ | $ 0 | $ 6,000 | $ 2,100,000,000 | $ 2,200,000,000 | |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Share Price (in usd per share) | $ 25 | ||||
Share price, dividend reinvestment plan (in usd per share) | $ 23.75 | $ 23.75 | |||
Share price percentage of IPO | 95.00% | 95.00% | |||
IPO | |||||
Class of Stock [Line Items] | |||||
Stock available for issuance, IPO (in shares) | $ | $ 1,700,000,000 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Narrative) (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage notes payable | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred finance costs | $ 2 | $ 2.2 |
Deferred costs, net | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred finance costs | $ (2) | $ (2.2) |
Real Estate Investments (Narrat
Real Estate Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)property | Mar. 31, 2015USD ($) | |
Business Acquisition [Line Items] | ||
Number of Properties | property | 166 | |
In-place leases | ||
Business Acquisition [Line Items] | ||
Amortization | $ 9,500 | $ 18,300 |
Intangible market lease assets | ||
Business Acquisition [Line Items] | ||
Amortization | 100 | 38 |
Intangible Market Lease Assets and Liabilities | ||
Business Acquisition [Line Items] | ||
Amortization | $ 43 | $ 100 |
Real Estate Investments (Acquir
Real Estate Investments (Acquired Assets) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)property | Mar. 31, 2015USD ($)property | |
Real estate investments | ||
Deposits for real estate acquisitions | $ (2,000) | $ (2,025) |
Cash paid for acquired real estate investments | 5,872 | 90,553 |
Properties Acquired During Current Year | ||
Real estate investments | ||
Land | 0 | |
Buildings, fixtures and improvements | 0 | |
Construction in progress | 5,872 | |
Total tangible assets | 5,872 | |
Total assets and liabilities acquired, net | 5,872 | |
Mortgage notes payable assumed to acquire real estate investments | 0 | |
Premiums on mortgages assumed | 0 | |
Deposits for real estate acquisitions | 0 | |
Cash paid for acquired real estate investments | $ 5,872 | |
Number of properties purchased | property | 0 | |
Properties Acquired During Current Year | In-place leases | ||
Real estate investments | ||
Acquired intangibles | $ 0 | |
Properties Acquired During Current Year | Market lease liabilities | ||
Real estate investments | ||
Market lease liabilities | $ 0 | |
Properties Acquired During Prior Year | ||
Real estate investments | ||
Land | 15,892 | |
Buildings, fixtures and improvements | 102,168 | |
Construction in progress | 0 | |
Total tangible assets | 118,060 | |
Total assets and liabilities acquired, net | 127,624 | |
Mortgage notes payable assumed to acquire real estate investments | (31,536) | |
Premiums on mortgages assumed | (2,535) | |
Deposits for real estate acquisitions | (3,000) | |
Cash paid for acquired real estate investments | $ 90,553 | |
Number of properties purchased | property | 10 | |
Properties Acquired During Prior Year | In-place leases | ||
Real estate investments | ||
Acquired intangibles | $ 14,286 | |
Properties Acquired During Prior Year | Market lease liabilities | ||
Real estate investments | ||
Market lease liabilities | $ (4,722) |
Real Estate Investments (Summar
Real Estate Investments (Summary of Intangible Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Intangible assets: | ||
Gross Carrying Amount | $ 241,459 | $ 241,459 |
Accumulated Amortization | 96,256 | 86,092 |
Net Carrying Amount | 145,203 | 155,367 |
Intangible market lease liabilities | ||
Gross Carrying Amount | 25,613 | 25,613 |
Accumulated Amortization | 3,258 | 2,619 |
Net Carrying Amount | 22,355 | 22,994 |
In-place leases | ||
Intangible assets: | ||
Gross Carrying Amount | 202,608 | 202,608 |
Accumulated Amortization | 91,868 | 82,390 |
Net Carrying Amount | 110,740 | 120,218 |
Intangible market lease assets | ||
Intangible assets: | ||
Gross Carrying Amount | 28,262 | 28,262 |
Accumulated Amortization | 4,013 | 3,393 |
Net Carrying Amount | 24,249 | 24,869 |
Other intangible assets | ||
Intangible assets: | ||
Gross Carrying Amount | 10,589 | 10,589 |
Accumulated Amortization | 375 | 309 |
Net Carrying Amount | $ 10,214 | $ 10,280 |
Real Estate Investments (Summ39
Real Estate Investments (Summary of Intangible Assets and Liabilities Future Amortization Expense) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, amortization expense, April 1, 2016 - December 31, 2016 | $ 129 |
Finite-lived intangible assets, amortization expense, 2017 | 173 |
Finite-lived intangible assets, amortization expense, 2018 | 173 |
Finite-lived intangible assets, amortization expense, 2019 | 173 |
Finite-lived intangible assets, amortization expense, 2020 | 173 |
Amortization Expense | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, amortization expense, April 1, 2016 - December 31, 2016 | 25,236 |
Finite-lived intangible assets, amortization expense, 2017 | 16,587 |
Finite-lived intangible assets, amortization expense, 2018 | 14,296 |
Finite-lived intangible assets, amortization expense, 2019 | 11,730 |
Finite-lived intangible assets, amortization expense, 2020 | 9,371 |
Rental Income | |
Finite-Lived Intangible Assets [Line Items] | |
Below market leases, amortization income, April 1, 2016 - December 31, 2016 | 159 |
Below market leases, amortization income, 2017 | 227 |
Below market leases, amortization income, 2018 | 519 |
Below market leases, amortization income, 2019 | 526 |
Below market leases, amortization income, 2020 | 713 |
In-place leases | Amortization Expense | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, amortization expense, April 1, 2016 - December 31, 2016 | 25,037 |
Finite-lived intangible assets, amortization expense, 2017 | 16,322 |
Finite-lived intangible assets, amortization expense, 2018 | 14,031 |
Finite-lived intangible assets, amortization expense, 2019 | 11,465 |
Finite-lived intangible assets, amortization expense, 2020 | 9,106 |
Other intangible assets | Amortization Expense | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, amortization expense, April 1, 2016 - December 31, 2016 | 199 |
Finite-lived intangible assets, amortization expense, 2017 | 265 |
Finite-lived intangible assets, amortization expense, 2018 | 265 |
Finite-lived intangible assets, amortization expense, 2019 | 265 |
Finite-lived intangible assets, amortization expense, 2020 | 265 |
Above-market lease assets | Rental Income | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, amortization expense, April 1, 2016 - December 31, 2016 | (1,642) |
Finite-lived intangible assets, amortization expense, 2017 | (1,888) |
Finite-lived intangible assets, amortization expense, 2018 | (1,367) |
Finite-lived intangible assets, amortization expense, 2019 | (1,079) |
Finite-lived intangible assets, amortization expense, 2020 | (737) |
Below-market lease liabilities | Rental Income | |
Finite-Lived Intangible Assets [Line Items] | |
Below market leases, amortization income, April 1, 2016 - December 31, 2016 | 1,801 |
Below market leases, amortization income, 2017 | 2,115 |
Below market leases, amortization income, 2018 | 1,886 |
Below market leases, amortization income, 2019 | 1,605 |
Below market leases, amortization income, 2020 | 1,450 |
Below-market ground lease assets | Property Operating and Maintenance Expense | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, amortization expense, April 1, 2016 - December 31, 2016 | 159 |
Finite-lived intangible assets, amortization expense, 2017 | 212 |
Finite-lived intangible assets, amortization expense, 2018 | 212 |
Finite-lived intangible assets, amortization expense, 2019 | 212 |
Finite-lived intangible assets, amortization expense, 2020 | 212 |
Above-market ground lease liabilities | Property Operating and Maintenance Expense | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible liability, amortization income, April 1, 2016 - December 31, 2016 | (30) |
Finite-lived intangible liability, amortization income, 2017 | (39) |
Finite-lived intangible liability, amortization income, 2018 | (39) |
Finite-lived intangible liability, amortization income, 2019 | (39) |
Finite-lived intangible liability, amortization income, 2020 | $ (39) |
Real Estate Investments (Future
Real Estate Investments (Future Minimum Payments) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Real Estate Investments, Net [Abstract] | |
April 1, 2016 — December 31, 2016 | $ 71,180 |
2,017 | 94,720 |
2,018 | 89,971 |
2,019 | 83,871 |
2,020 | 77,696 |
Thereafter | 511,921 |
Total | $ 929,359 |
Real Estate Investments (Geogra
Real Estate Investments (Geographic Concentrations) (Details) - Sales Revenue, Net - Geographic Concentration Risk | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Florida | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.70% | 23.60% |
Iowa | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.10% | 13.00% |
Pennsylvania | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.70% | 14.30% |
Investment Securities (Schedule
Investment Securities (Schedule of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 1,084 | |
Gross Unrealized Gains | 19 | |
Gross Unrealized Losses | (25) | |
Investment securities, at fair value | $ 1,070 | $ 1,078 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,084 | |
Gross Unrealized Gains | 11 | |
Gross Unrealized Losses | (25) | |
Investment securities, at fair value | $ 1,070 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities, at fair value | $ 1,070 | $ 1,078 | |
Amortized cost | $ 1,084 | ||
Proceeds from sales of investment securities | 0 | $ 4,207 | |
Gain on sale of investment securities | 0 | 286 | |
Preferred Stock, Common Stock, and Real Estate Income Funds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | 3,900 | ||
Proceeds from sales of investment securities | 4,200 | ||
Gain on sale of investment securities | $ 300 | ||
Preferred Stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities, at fair value | $ 1,100 | ||
Period from issuance when investments become redeemable | 5 years |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | Jun. 26, 2015 | Apr. 15, 2014 | Mar. 21, 2014 | |
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 565,000,000 | |||||
Outstanding balance | $ 460,000,000 | $ 430,000,000 | ||||
Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 500,000,000 | $ 50,000,000 | ||||
Maximum borrowing capacity under accordion feature | $ 750,000,000 | $ 200,000,000 | ||||
Outstanding balance | $ 460,000,000 | $ 430,000,000 | ||||
Effective Interest Rate | 2.70% | |||||
Unused borrowing capacity | $ 105,000,000 | |||||
Federal Funds Effective Rate | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 0.50% | |||||
One-Month LIBOR | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 1.00% | |||||
Minimum | London Interbank Offered Rate (LIBOR) | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 1.60% | |||||
Minimum | Base Rate | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 0.35% | |||||
Maximum | London Interbank Offered Rate (LIBOR) | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 2.20% | |||||
Maximum | Base Rate | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 0.95% |
Mortgage Notes Payable (Mortgag
Mortgage Notes Payable (Mortgage Notes) (Details) $ in Thousands | Mar. 31, 2016USD ($)property | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||
Real estate investment, at cost relating to notes payable | $ 279,300 | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 23 | |
Outstanding loan amount | $ 154,791 | $ 159,455 |
Effective Interest Rate | 5.31% | |
Deferred financing costs, net of accumulated amortization | $ (1,988) | (2,150) |
Mortgage notes payable, net of deferred financing costs | $ 152,803 | 157,305 |
Bowie Gateway Medical Center - Bowie, MD | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 5,946 | 5,969 |
Effective Interest Rate | 6.18% | |
Medical Center of New Windsor - New Windsor, NY | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 8,691 | 8,720 |
Effective Interest Rate | 6.39% | |
Plank Medical Center - Clifton Park, NY | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 3,449 | 3,461 |
Effective Interest Rate | 6.39% | |
Cushing Center - Schenectady, NY | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 0 | |
Outstanding loan amount | $ 0 | 4,184 |
Effective Interest Rate | 5.71% | |
Countryside Medical Arts - Safety Harbor, FL | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 5,970 | 5,992 |
Effective Interest Rate | 6.07% | |
St. Andrews Medical Park, Venice, FL | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 3 | |
Outstanding loan amount | $ 6,599 | 6,623 |
Effective Interest Rate | 6.07% | |
Campus at Crooks & Auburn Building C - Rochester Hills | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 3,537 | 3,555 |
Effective Interest Rate | 5.91% | |
Slingerlands Crossing Phase I - Bethlehem, NY | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 6,657 | 6,680 |
Effective Interest Rate | 6.39% | |
Slingerlands Crossing Phase II - Bethlehem, NY | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 7,751 | 7,777 |
Effective Interest Rate | 6.39% | |
Benedictine Cancer Center - Kingston | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 6,788 | 6,811 |
Effective Interest Rate | 6.39% | |
Aurora Healthcare Center Portfolio - WI | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 6 | |
Outstanding loan amount | $ 31,157 | 31,257 |
Effective Interest Rate | 6.55% | |
Palm Valley Medical Plaza - Goodyear, AZ | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 3,501 | 3,525 |
Effective Interest Rate | 4.21% | |
Medical Center V - Peoria, AZ | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 3,212 | 3,232 |
Effective Interest Rate | 4.75% | |
Courtyard Fountains - Gresham, OR | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 24,999 | 24,999 |
Effective Interest Rate | 3.82% | |
Fox Ridge Senior Living at Bryant - Bryant | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 7,794 | 7,825 |
Effective Interest Rate | 3.98% | |
Fox Ridge Senior Living at Chenal - Little Rock | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 17,735 | 17,800 |
Effective Interest Rate | 3.98% | |
Fox Ridge Senior Living at Parkstone - North Little Rock | Mortgages | ||
Debt Instrument [Line Items] | ||
Encumbered Properties | property | 1 | |
Outstanding loan amount | $ 11,005 | $ 11,045 |
Effective Interest Rate | 3.98% |
Mortgage Notes Payable (Mortg46
Mortgage Notes Payable (Mortgage Principal Payments) (Details) - Mortgages - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
April 1, 2016 — December 31, 2016 | $ 10,986 | |
2,017 | 34,832 | |
2,018 | 31,893 | |
2,019 | 13,324 | |
2,020 | 24,279 | |
Thereafter | 39,477 | |
Total | $ 154,791 | $ 159,455 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments (Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | $ 1,070 | $ 1,078 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | 1,070 | 1,078 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | 1,070 | 1,078 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable | $ 152,803 | $ 157,305 |
Mortgage premiums, net | (1,889) | (2,403) |
Mortgages | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable | 154,800 | 159,500 |
Mortgage premiums, net | 1,900 | 2,400 |
Significant Unobservable Inputs Level 3 | Mortgages | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 156,680 | 161,858 |
Significant Unobservable Inputs Level 3 | Mortgages | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 159,802 | 162,654 |
Significant Unobservable Inputs Level 3 | Credit Facility | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 460,000 | 430,000 |
Significant Unobservable Inputs Level 3 | Credit Facility | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 460,000 | $ 430,000 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock by Class) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 09, 2013 | Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Jan. 26, 2016 |
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 86,933,798 | 86,933,798 | 86,135,411 | 86,933,798 | |||
Proceeds from issuance of common stock | $ 0 | $ 6 | $ 2,100,000 | $ 2,200,000 | |||
Dividends declared per day (in usd per share) | $ 0.0046575343 | $ 0.0046448087 | |||||
Common stock dividends (in usd per share) | $ 1.70 | $ 1.70 | $ 0.42 | $ 0.42 | |||
Short Term Trading Fee Percentage | 2.00% | ||||||
Annual authorized amount as a percentage | 5.00% | 5.00% | 5.00% | ||||
Common stock issued through distribution reinvestment plan (in shares) | 800,000 | 800,000 | |||||
Common stock issued through distribution reinvestment plan | $ 19,120 | $ 19,235 | |||||
Share Repurchase Program, Shares Authorized, Percent of Weighted Average Outstanding Stock, For Fiscal Semester | 2.50% | ||||||
Share Repurchase Program, Shares Authorized, Percent of Weighted Average Outstanding Stock, For Fiscal Year | 5.00% | ||||||
One Year | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price percent | 92.50% | 92.50% | 92.50% | ||||
One Year | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price (in usd per share) | $ 23.13 | $ 23.13 | $ 23.13 | ||||
Share repurchase price percent | 92.50% | 92.50% | 92.50% | ||||
Two Years | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price percent | 95.00% | 95.00% | 95.00% | ||||
Two Years | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price (in usd per share) | $ 23.75 | $ 23.75 | $ 23.75 | ||||
Share repurchase price percent | 95.00% | 95.00% | 95.00% | ||||
Three Years | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price percent | 97.50% | 97.50% | 97.50% | ||||
Three Years | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price (in usd per share) | $ 24.38 | $ 24.38 | $ 24.38 | ||||
Share repurchase price percent | 97.50% | 97.50% | 97.50% | ||||
Four Years | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price percent | 100.00% | 100.00% | 100.00% | ||||
Four Years | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase price (in usd per share) | $ 25 | $ 25 | $ 25 | ||||
Share repurchase price percent | 100.00% | 100.00% | 100.00% |
Common Stock (Cumulative Share
Common Stock (Cumulative Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 39 Months Ended | 42 Months Ended |
May. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||||
Number of Shares Repurchased (in shares) | 6,660 | 968,370 | 975,030 | |
Average Price per Share (in usd per share) | $ 24.36 | $ 23.72 | $ 23.73 | |
Remaining number of shares authorized (in shares) | 201,367 | 201,367 | ||
Stock Repurchased During Period, Unfulfilled Repurchases, Value | $ 4,600 | |||
Common stock repurchases | $ 163 | |||
Unfulfilled treasury stock (in usd per share) | $ 23.04 | |||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Remaining number of shares authorized (in shares) | 6,660 | |||
Common stock repurchases | $ 200 | |||
Unfulfilled treasury stock (in usd per share) | $ 24.36 |
Related Party Transactions an51
Related Party Transactions and Arrangements (Details) - USD ($) $ in Millions | Jan. 14, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | |||
Common stock, shares outstanding (in shares) | 86,933,798 | 86,135,411 | |
Tax Depreciation Deduction | Advisor | |||
Related Party Transaction [Line Items] | |||
Excess depreciation deductions maximum | $ 10 | ||
Acuity Specialty Hospital | Sponsor and Advisor Under Common Control of Purchasing Entity | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Purchase price | $ 39.4 | ||
American Realty Capital Healthcare II Special Limited Partnership, LLC | Special Limited Partner | |||
Related Party Transaction [Line Items] | |||
Common stock, shares outstanding (in shares) | 8,888 | 8,888 |
Related Party Transactions an52
Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Maximum | ||
Related Party Transaction [Line Items] | ||
Offering costs excluding selling commissions and dealer manager fees | 2.00% | |
REIT liability, as a percentage of gross common stock proceeds | 12.00% | |
Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum | Former Dealer Manager | ||
Related Party Transaction [Line Items] | ||
Sales commissions as a percentage of benchmark | 7.00% | |
Option One | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum | Former Dealer Manager | ||
Related Party Transaction [Line Items] | ||
Dealer manager fee earned by related party | 3.00% | |
Gross Proceeds, Common Stock | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer | ||
Related Party Transaction [Line Items] | ||
Brokerage fee as a percentage of benchmark | 7.50% | |
Sales Commissions | Selling Commission Fee Paid Upfront | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer | ||
Related Party Transaction [Line Items] | ||
Brokerage fee as a percentage of benchmark | 2.50% | |
Sales Commissions | Fee Paid at Anniversary of Sale | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer | ||
Related Party Transaction [Line Items] | ||
Brokerage fee as a percentage of benchmark | 1.00% | |
Dealer Manager Fees | Option Two | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Former Dealer Manager | ||
Related Party Transaction [Line Items] | ||
Sales commissions as a percentage of benchmark | 2.50% | |
Sales Commissions and Dealer Manager Fees | Realty Capital Securities, LLC | Former Dealer Manager | ||
Related Party Transaction [Line Items] | ||
Expenses incurred | $ 0 | $ (2,000) |
Related Party Transactions an53
Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | May. 12, 2015 | Apr. 01, 2015 | |
Related Party Transaction [Line Items] | ||||
Equity instruments, net of selling commissions (in usd per share) | $ 22.50 | $ 22.50 | ||
Expenses forgiven | $ 0 | $ 600,000 | ||
Advisor | ||||
Related Party Transaction [Line Items] | ||||
Shares approved for issuance (in shares) | 359,250 | |||
American Realty Capital Healthcare Advisors, LLC | Contract Purchase Price | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fees as a percentage of benchmark | 1.00% | |||
Reimbursed fees to related party, percentage of benchmark | 0.50% | |||
Related party transaction, total one-time operating fees earned by related party, percentage of benchmark, fee cap | 4.50% | |||
Quarterly asset management earned by related party, percentage of benchmark | 0.1875% | |||
American Realty Capital Healthcare Advisors, LLC | Advance on Loan or Other Investment | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fees as a percentage of benchmark | 1.00% | |||
Reimbursed fees to related party, percentage of benchmark | 0.50% | |||
Related party transaction, total one-time operating fees earned by related party, percentage of benchmark, fee cap | 4.50% | |||
American Realty Capital Healthcare Advisors, LLC | Contract Purchase Price, All Assets Acquired | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fees and financing coordination fees, fee cap earned by related party, percentage of benchmark | 1.50% | |||
American Realty Capital Healthcare Advisors, LLC | Amount Available or Outstanding Under Financing Arrangement | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Financing coordination fees | 0.75% | |||
American Realty Capital Healthcare Advisors, LLC | Pre-tax Non-compounded Return on Capital Contribution | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Cumulative capital investment return to investors as a percentage of benchmark | 6.00% | |||
American Realty Capital Healthcare Advisors, LLC | Gross Revenue, Stand-alone Single-tenant Net Leased Properties | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Property management fees | 1.50% | |||
American Realty Capital Healthcare Advisors, LLC | Gross Revenue, Excluding Stand-alone Single-tenant Net Leased Properties | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Property management fees | 2.50% | |||
Maximum | American Realty Capital Healthcare Advisors, LLC | Average Invested Assets | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses as a percentage of benchmark | 2.00% | |||
Maximum | American Realty Capital Healthcare Advisors, LLC | Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses as a percentage of benchmark | 25.00% | |||
Maximum | American Realty Capital Healthcare Advisors, LLC | Gross Revenue, Managed Properties | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Oversight fees earned by related party | 1.00% | |||
American Realty Capital Healthcare Advisors, LLC | Cost of Assets | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Asset management fees earned, percentage of benchmark | 0.0625% |
Related Party Transactions an54
Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Incurred, Forgiven and Payable) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Expenses forgiven | $ 0 | $ 600,000 | |
Total related party operation fees and reimbursements | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 6,310,000 | 2,424,000 | |
Expenses forgiven | 0 | 589,000 | |
Payable (Receivable) | 781,000 | $ 536,000 | |
Nonrecurring Fees | Acquisition fees and related cost reimbursements | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 0 | 857,000 | |
Expenses forgiven | 0 | 0 | |
Payable (Receivable) | 0 | 0 | |
Nonrecurring Fees | Acquisition cost reimbursements | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 0 | 429,000 | |
Expenses forgiven | 0 | 0 | |
Payable (Receivable) | 0 | 0 | |
Nonrecurring Fees | Financing coordination fees | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 0 | 236,000 | |
Expenses forgiven | 0 | 0 | |
Payable (Receivable) | 0 | 0 | |
Recurring Fees | Asset management Fees | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 4,384,000 | 0 | |
Expenses forgiven | 0 | 0 | |
Payable (Receivable) | 0 | (5,000) | |
Recurring Fees | Property management and leasing fees | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 771,000 | 0 | |
Expenses forgiven | 0 | 589,000 | |
Payable (Receivable) | (5,000) | (10,000) | |
Recurring Fees | Transfer agent and other professional services | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 1,003,000 | 857,000 | |
Expenses forgiven | 0 | 0 | |
Payable (Receivable) | 786,000 | 499,000 | |
Recurring Fees | Distributions on Class B Units | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 152,000 | 45,000 | |
Expenses forgiven | 0 | $ 0 | |
Payable (Receivable) | $ 0 | $ 52,000 |
Related Party Transactions an55
Related Party Transactions and Arrangements (Fees Paid in Connection with the Liquidation or Listing of the Company's Real Estate Assets) (Details) - USD ($) $ in Millions | Mar. 17, 2015 | Mar. 31, 2016 |
American Realty Capital Healthcare Advisors, LLC | Pre-tax Non-compounded Return on Capital Contribution | Advisor | ||
Related Party Transaction [Line Items] | ||
Cumulative capital investment return to investors as a percentage of benchmark | 6.00% | |
Subordinated performance fee as a percentage of benchmark | 15.00% | |
Healthcare Trust Special Limited Partnership, LLC | Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return | Special Limited Partner | ||
Related Party Transaction [Line Items] | ||
Subordinated performance fee as a percentage of benchmark | 15.00% | |
Healthcare Trust Special Limited Partnership, LLC | Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capital | Special Limited Partner | ||
Related Party Transaction [Line Items] | ||
Subordinated participation fees as a percentage of benchmark | 15.00% | |
Distribution upon nonrenewal of advisory agreement | 15.00% | |
Maximum | American Realty Capital Healthcare Advisors, LLC | Aggregate Total Return of Year Fee is Incurred | Advisor | ||
Related Party Transaction [Line Items] | ||
Subordinated performance fee earned by related party, fee cap | 10.00% | |
Brokerage Commission Fees | Option One | Maximum | American Realty Capital Healthcare Advisors, LLC | Contract Sales Price | Advisor | ||
Related Party Transaction [Line Items] | ||
Real estate commissions as a percentage of benchmark | 2.00% | |
Brokerage Commission Fees | Option Two | Maximum | American Realty Capital Healthcare Advisors, LLC | Contract Sales Price | Advisor | ||
Related Party Transaction [Line Items] | ||
Real estate commissions as a percentage of benchmark | 50.00% | |
Real Estate Commissions | Maximum | American Realty Capital Healthcare Advisors, LLC | Contract Sales Price | Advisor | ||
Related Party Transaction [Line Items] | ||
Real estate commissions as a percentage of benchmark | 6.00% | |
Annual Targeted Investor Return | Healthcare Trust Special Limited Partnership, LLC | Pre-tax Non-compounded Return on Capital Contribution | Special Limited Partner | ||
Related Party Transaction [Line Items] | ||
Cumulative capital investment return to investors as a percentage of benchmark | 6.00% | |
RCS Capital, KeyBanc and Investment Banking and Capital Markets Division of Dealer Manager | Listing Fee | ||
Related Party Transaction [Line Items] | ||
Listing fee earned for listing on national securities exchange | $ 1.5 | |
RCS Capital, KeyBanc and Investment Banking and Capital Markets Division of Dealer Manager | Transaction Advisory Fee | ||
Related Party Transaction [Line Items] | ||
Transaction fee as percent of sale transaction | 0.25% |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation | $ 15,000 | $ 1,000 |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock issued during period, issued for services (in shares) | 0 | 0 |
Restricted Share Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted automatically upon election to board of directors, in shares | 1,333 | |
Restricted share vesting period | 5 years | |
Periodic vesting percentage | 20.00% | |
Maximum authorized amount as a percentage of shares authorized | 5.00% | |
Number of shares authorized, in shares | 3,400,000 | |
Nonvested awards, compensation cost not yet recognized | $ 200,000 | |
Nonvested awards, compensation cost not yet recognized, period for recognition | 3 years 6 months | |
Equity-based compensation | $ 15,000 | $ 1,000 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of Activity) (Details) - Restricted Share Plan - Restricted Stock | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance, Unvested (in shares) | shares | 11,731 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (800) |
Forfeitures (in shares) | shares | 0 |
Ending Balance, Unvested (in shares) | shares | 10,931 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Unvested, Weighted-Average Issue Price (in usd per share) | $ / shares | $ 22.50 |
Granted, Weighted-Average Issue Price (in usd per share) | $ / shares | 0 |
Vested, Weighted-Average Issue Price (in usd per share) | $ / shares | 22.50 |
Forfeitures, Weighted-Average Issued (in usd per share) | $ / shares | 0 |
Ending Balance, Unvested, Weighted-Average Issue Price (in usd per share) | $ / shares | $ 22.50 |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Nov. 30, 2014 | |
Noncontrolling Interest [Line Items] | ||||
Limited partner units (in units) | 90 | 90 | ||
Distributions to non-controlling interest holders | $ 172 | $ 178 | ||
Non-controlling interests | 9,519 | $ 9,697 | ||
Non-controlling Interests | ||||
Noncontrolling Interest [Line Items] | ||||
Limited partner units (in units) | 405,908 | |||
Units issued to purchase building | $ 10,100 | |||
Units issued to fund purchase of A Building (in usd per share) | $ 25 | |||
Plaza Del Rio Medical Office Campus - Portfolio, AZ | Non-controlling Interests | ||||
Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 500 | |||
Non-controlling ownership percentage | 4.10% |
Non-controlling Interests (Summ
Non-controlling Interests (Summary of Non-controlling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Non-controlling interests | $ 9,519 | $ 9,697 | |
Net Real Estate Assets Subject to Investment Arrangement | 2,176,891 | 2,194,602 | |
Mortgage Notes Payable Subject to Investment Arrangement | 152,803 | 157,305 | |
Distributions | 172 | ||
Non-controlling Interests | |||
Noncontrolling Interest [Line Items] | |||
Distributions | 172 | ||
Plaza Del Rio Medical Office Campus - Portfolio, AZ | Non-controlling Interests | |||
Noncontrolling Interest [Line Items] | |||
Non-controlling interests | $ 500 | ||
Non-controlling ownership percentage | 4.10% | ||
Net Real Estate Assets Subject to Investment Arrangement | $ 10,577 | 10,561 | |
Mortgage Notes Payable Subject to Investment Arrangement | 0 | $ 0 | |
Distributions | $ 0 | $ 0 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net loss attributable to stockholders | $ (1,555) | $ (5,220) |
Basic and diluted weighted-average shares outstanding (in shares) | 86,658,678 | 84,250,503 |
Basic and diluted net loss per share (in usd per share) | $ (0.02) | $ (0.06) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 776,179 | 519,482 |
Restricted Stock | ||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10,931 | 5,599 |
OP Units | ||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 405,998 | 405,998 |
Class B Units | ||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 359,250 | 107,885 |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation of Segment Activity) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($)segment | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | 3 |
Rental income | $ 26,592 | $ 20,856 |
Operating expense reimbursement | 3,709 | 3,130 |
Resident services and fee income | 45,202 | 33,135 |
Contingent purchase price consideration | 6 | 0 |
Total revenues | 75,509 | 57,121 |
Property operating | 38,792 | 27,477 |
Net operating income | 36,717 | 29,644 |
Operating fees to affiliate | (5,155) | 0 |
Acquisition and transaction related | (42) | (1,999) |
General and administrative | (3,987) | (2,599) |
Depreciation and amortization | (24,615) | (29,448) |
Interest expense | (4,984) | (1,373) |
Income from investment securities and other income | 22 | 273 |
Gain on sale of investment securities | 286 | |
Income tax benefit | 483 | (29) |
Net loss attributable to non-controlling interests | 6 | 25 |
Net loss attributable to stockholders | (1,555) | (5,220) |
Operating Segments | Medical Office Buildings | ||
Segment Reporting Information [Line Items] | ||
Rental income | 16,603 | 11,480 |
Operating expense reimbursement | 3,677 | 3,098 |
Resident services and fee income | 0 | 0 |
Contingent purchase price consideration | 6 | |
Total revenues | 20,286 | 14,578 |
Property operating | 5,771 | 4,849 |
Net operating income | 14,515 | 9,729 |
Operating Segments | Triple-Net Leased Healthcare Facilities | ||
Segment Reporting Information [Line Items] | ||
Rental income | 9,989 | 9,376 |
Operating expense reimbursement | 32 | 32 |
Resident services and fee income | 0 | 0 |
Contingent purchase price consideration | 0 | |
Total revenues | 10,021 | 9,408 |
Property operating | 636 | 72 |
Net operating income | 9,385 | 9,336 |
Operating Segments | Seniors Housing Communities | ||
Segment Reporting Information [Line Items] | ||
Rental income | 0 | 0 |
Operating expense reimbursement | 0 | 0 |
Resident services and fee income | 45,202 | 33,135 |
Contingent purchase price consideration | 0 | |
Total revenues | 45,202 | 33,135 |
Property operating | 32,385 | 22,556 |
Net operating income | $ 12,817 | $ 10,579 |
Segment Reporting (Reconcilia62
Segment Reporting (Reconciliation of Segment Activity to Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Investments in real estate: | $ 2,176,891 | $ 2,194,602 | ||
Construction in progress | 27,180 | 21,309 | ||
Cash and cash equivalents | 36,509 | 24,474 | $ 98,658 | $ 182,617 |
Restricted cash | 4,299 | 4,647 | ||
Investment securities, at fair value | 1,070 | 1,078 | ||
Straight-line rent receivable, net | 13,927 | 11,470 | ||
Prepaid expenses and other assets | 22,237 | 21,707 | ||
Deferred costs, net | 11,094 | 11,864 | ||
Total assets | 2,266,027 | 2,269,842 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Construction in progress | 37,180 | 31,309 | ||
Operating Segments | Medical Office Buildings | ||||
Segment Reporting Information [Line Items] | ||||
Investments in real estate: | 829,928 | 839,041 | ||
Operating Segments | Triple-Net Leased Healthcare Facilities | ||||
Segment Reporting Information [Line Items] | ||||
Investments in real estate: | 443,888 | 447,893 | ||
Operating Segments | Seniors Housing Communities | ||||
Segment Reporting Information [Line Items] | ||||
Investments in real estate: | $ 865,895 | $ 876,359 |
Segment Reporting (Reconcilia63
Segment Reporting (Reconciliation of Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 1,813 | $ 1,088 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 1,813 | 667 |
Operating Segments | Medical Office Buildings | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 664 | 445 |
Operating Segments | Triple-Net Leased Healthcare Facilities | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 99 | 60 |
Operating Segments | Seniors Housing Communities | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 1,050 | $ 162 |
Commitments and Contingencies64
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 200 | $ 100 |
Interest expense | $ 21 | $ 21 |
Commitments and Contingencies65
Commitments and Contingencies (Schedule of Future Minimum Rental Payments) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Operating Leases | |
April 1, 2016 — December 31, 2016 | $ 497 |
2017, Operating Leases | 664 |
2018, Operating Leases | 668 |
2019, Operating Leases | 673 |
2020, Operating Leases | 671 |
Thereafter, Operating Leases | 79,997 |
Total, Operating Leases | 83,170 |
Capital Leases | |
April 1, 2016 — December 31, 2016 | 56 |
2017, Capital Leases | 76 |
2018, Capital Leases | 78 |
2019, Capital Leases | 80 |
2020, Capital Leases | 82 |
Thereafter, Capital Leases | 7,847 |
Total, Capital Leases | 8,219 |
Interest, Capital Leases | (3,414) |
Total present value of minimum lease payments | $ 4,805 |
Commitments and Contingencies66
Commitments and Contingencies (Development Project Funding) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2015 | Jul. 31, 2015 |
Long-term Purchase Commitment [Line Items] | ||||
Asset purchase and development agreement | $ 82,000 | |||
Construction in progress | $ 27,180 | $ 21,309 | ||
Maximum borrowing capacity | $ 565,000 | |||
Land | ||||
Long-term Purchase Commitment [Line Items] | ||||
Construction in progress | 10,000 | |||
Construction in Progress | ||||
Long-term Purchase Commitment [Line Items] | ||||
Construction in progress | $ 27,200 | |||
Credit Facility | ||||
Long-term Purchase Commitment [Line Items] | ||||
Maximum borrowing capacity | $ 2,700 | |||
Stated rate | 7.00% |