Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36181 | |
Entity Registrant Name | CareTrust REIT, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-3999490 | |
Entity Address, Address Line One | 905 Calle Amanecer | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | San Clemente | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92673 | |
City Area Code | 949 | |
Local Phone Number | 542-3130 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CTRE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 97,028,742 | |
Entity Central Index Key | 0001590717 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Real estate investments, net | $ 1,384,166 | $ 1,589,971 |
Other real estate related investments, at fair value (including accrued interest of $1,218 as of September 30, 2022 and $155 as of December 31, 2021) | 158,662 | 15,155 |
Assets held for sale, net | 77,708 | 4,835 |
Cash and cash equivalents | 4,861 | 19,895 |
Accounts and other receivables | 808 | 2,418 |
Prepaid expenses and other assets, net | 19,046 | 7,512 |
Deferred financing costs, net | 327 | 1,062 |
Total assets | 1,645,578 | 1,640,848 |
Liabilities and Equity: | ||
Senior unsecured notes payable, net | 394,928 | 394,262 |
Senior unsecured term loan, net | 199,295 | 199,136 |
Unsecured revolving credit facility | 180,000 | 80,000 |
Accounts payable, accrued liabilities and deferred rent liabilities | 30,851 | 25,408 |
Dividends payable | 26,827 | 26,285 |
Total liabilities | 831,901 | 725,091 |
Commitments and contingencies (Note 11) | ||
Equity: | ||
Preferred stock, $0.01 par value; 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 96,605,112 and 96,296,673 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 966 | 963 |
Additional paid-in capital | 1,196,662 | 1,196,839 |
Cumulative distributions in excess of earnings | (383,951) | (282,045) |
Total equity | 813,677 | 915,757 |
Total liabilities and equity | $ 1,645,578 | $ 1,640,848 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Other real estate related investments, accrued interest | $ 1,218 | $ 155 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (shares) | 0 | 0 |
Preferred stock, outstanding (shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, issued (shares) | 96,605,112 | 96,296,673 |
Common stock, outstanding (shares) | 96,605,112 | 96,296,673 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Rental income | $ 47,018 | $ 48,087 | $ 139,831 | $ 141,077 |
Interest and other income | 3,275 | 518 | 4,491 | 1,537 |
Total revenues | 50,293 | 48,605 | 144,322 | 142,614 |
Expenses: | ||||
Depreciation and amortization | 12,256 | 13,968 | 38,390 | 41,284 |
Interest expense | 8,355 | 5,692 | 20,400 | 17,988 |
Property taxes | 691 | 1,004 | 3,365 | 2,466 |
Impairment of real estate investments | 12,322 | 0 | 73,706 | 0 |
Provision for loan losses, net | 0 | 0 | 3,844 | 0 |
Property operating expenses | 3,808 | 0 | 4,344 | 0 |
General and administrative | 5,159 | 5,196 | 15,352 | 16,136 |
Total expenses | 42,591 | 25,860 | 159,401 | 77,874 |
Other loss: | ||||
Loss on extinguishment of debt | 0 | (10,827) | 0 | (10,827) |
Loss on sale of real estate, net | (2,287) | 0 | (2,101) | (192) |
Unrealized loss on other real estate related investments | (4,706) | 0 | (4,706) | 0 |
Total other loss | (6,993) | (10,827) | (6,807) | (11,019) |
Net income (loss) | $ 709 | $ 11,918 | $ (21,886) | $ 53,721 |
Earnings (loss) per common share: | ||||
Basic (in usd per share) | $ 0.01 | $ 0.12 | $ (0.23) | $ 0.56 |
Diluted (in usd per share) | $ 0.01 | $ 0.12 | $ (0.23) | $ 0.56 |
Weighted-average number of common shares: | ||||
Basic (in shares) | 96,605 | 96,297 | 96,527 | 95,922 |
Diluted (in shares) | 96,625 | 96,297 | 96,527 | 95,937 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings |
Beginning balance (in shares) at Dec. 31, 2020 | 95,215,797 | |||
Beginning balance at Dec. 31, 2020 | $ 914,142 | $ 952 | $ 1,164,402 | $ (251,212) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net, (in shares) | 702,000 | |||
Issuance of common stock, net | 16,191 | $ 7 | 16,184 | |
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 63,265 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | (1,330) | $ 1 | (1,331) | |
Amortization of stock-based compensation | 1,585 | 1,585 | ||
Common dividends | (25,633) | (25,633) | ||
Net (loss) income | 20,486 | 20,486 | ||
Ending balance (in shares) at Mar. 31, 2021 | 95,981,062 | |||
Ending balance at Mar. 31, 2021 | 925,441 | $ 960 | 1,180,840 | (256,359) |
Beginning balance (in shares) at Dec. 31, 2020 | 95,215,797 | |||
Beginning balance at Dec. 31, 2020 | 914,142 | $ 952 | 1,164,402 | (251,212) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | 53,721 | |||
Ending balance (in shares) at Sep. 30, 2021 | 96,296,673 | |||
Ending balance at Sep. 30, 2021 | 917,615 | $ 963 | 1,191,204 | (274,552) |
Beginning balance (in shares) at Mar. 31, 2021 | 95,981,062 | |||
Beginning balance at Mar. 31, 2021 | 925,441 | $ 960 | 1,180,840 | (256,359) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net, (in shares) | 288,000 | |||
Issuance of common stock, net | 6,755 | $ 3 | 6,752 | |
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 27,611 | |||
Amortization of stock-based compensation | 1,810 | 1,810 | ||
Common dividends | (25,714) | (25,714) | ||
Net (loss) income | 21,317 | 21,317 | ||
Ending balance (in shares) at Jun. 30, 2021 | 96,296,673 | |||
Ending balance at Jun. 30, 2021 | 929,609 | $ 963 | 1,189,402 | (260,756) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Amortization of stock-based compensation | 1,802 | 1,802 | ||
Common dividends | (25,714) | (25,714) | ||
Net (loss) income | 11,918 | 11,918 | ||
Ending balance (in shares) at Sep. 30, 2021 | 96,296,673 | |||
Ending balance at Sep. 30, 2021 | $ 917,615 | $ 963 | 1,191,204 | (274,552) |
Beginning balance (in shares) at Dec. 31, 2021 | 96,296,673 | 96,296,673 | ||
Beginning balance at Dec. 31, 2021 | $ 915,757 | $ 963 | 1,196,839 | (282,045) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 190,393 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | (2,772) | $ 2 | (2,774) | |
Amortization of stock-based compensation | 1,521 | 1,521 | ||
Common dividends | (26,659) | (26,659) | ||
Net (loss) income | (43,264) | (43,264) | ||
Ending balance (in shares) at Mar. 31, 2022 | 96,487,066 | |||
Ending balance at Mar. 31, 2022 | $ 844,583 | $ 965 | 1,195,586 | (351,968) |
Beginning balance (in shares) at Dec. 31, 2021 | 96,296,673 | 96,296,673 | ||
Beginning balance at Dec. 31, 2021 | $ 915,757 | $ 963 | 1,196,839 | (282,045) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | $ (21,886) | |||
Ending balance (in shares) at Sep. 30, 2022 | 96,605,112 | 96,605,112 | ||
Ending balance at Sep. 30, 2022 | $ 813,677 | $ 966 | 1,196,662 | (383,951) |
Beginning balance (in shares) at Mar. 31, 2022 | 96,487,066 | |||
Beginning balance at Mar. 31, 2022 | 844,583 | $ 965 | 1,195,586 | (351,968) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 118,046 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | (1,697) | $ 1 | (1,698) | |
Amortization of stock-based compensation | 1,394 | 1,394 | ||
Common dividends | (26,681) | (26,681) | ||
Net (loss) income | 20,669 | 20,669 | ||
Ending balance (in shares) at Jun. 30, 2022 | 96,605,112 | |||
Ending balance at Jun. 30, 2022 | 838,268 | $ 966 | 1,195,282 | (357,980) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Amortization of stock-based compensation | 1,380 | 1,380 | ||
Common dividends | (26,680) | (26,680) | ||
Net (loss) income | $ 709 | 709 | ||
Ending balance (in shares) at Sep. 30, 2022 | 96,605,112 | 96,605,112 | ||
Ending balance at Sep. 30, 2022 | $ 813,677 | $ 966 | $ 1,196,662 | $ (383,951) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common dividends (in usd per share) | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.265 | $ 0.265 | $ 0.265 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||||
Net (loss) income | $ 709 | $ 11,918 | $ (21,886) | $ 53,721 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation and amortization (including below-market ground leases) | 38,437 | 41,328 | ||
Amortization of deferred financing costs | 1,560 | 1,531 | ||
Loss on extinguishment of debt | 0 | 10,827 | 0 | 10,827 |
Unrealized loss on other real estate related investments | 4,706 | 0 | 4,706 | 0 |
Amortization of stock-based compensation | 1,380 | 1,802 | 4,295 | 5,197 |
Straight-line rental income | (3) | (6) | (14) | (26) |
Adjustment for collectibility of rental income | 977 | 0 | ||
Noncash interest income | (1,063) | 0 | ||
Loss on sale of real estate, net | 2,287 | 0 | 2,101 | 192 |
Impairment of real estate investments | 12,322 | 0 | 73,706 | 0 |
Provision for loan losses, net | 0 | 0 | 3,844 | 0 |
Change in operating assets and liabilities: | ||||
Accounts and other receivables | 648 | (1,775) | ||
Prepaid expenses and other assets, net | (2,082) | (20) | ||
Accounts payable, accrued liabilities and deferred rent liabilities | 5,443 | 7,388 | ||
Net cash provided by operating activities | 110,672 | 118,363 | ||
Cash flows from investing activities: | ||||
Acquisitions of real estate, net of deposits applied | (21,915) | (180,323) | ||
Purchases of equipment, furniture and fixtures and improvements to real estate | (5,475) | (4,826) | ||
Investment in real estate related investments and other loans receivable | (149,650) | (700) | ||
Principal payments received on other loans receivable | 1,166 | 172 | ||
Escrow deposits for potential acquisitions of real estate | 0 | (3,100) | ||
Net proceeds from sales of real estate | 34,115 | 6,814 | ||
Net cash used in investing activities | (141,759) | (181,963) | ||
Cash flows from financing activities: | ||||
Proceeds from the issuance of common stock, net | 0 | 22,946 | ||
Proceeds from the issuance of senior unsecured notes payable | 0 | 400,000 | ||
Borrowings under unsecured revolving credit facility | 145,000 | 220,000 | ||
Payments on senior unsecured notes payable | 0 | (300,000) | ||
Payments on unsecured revolving credit facility | (45,000) | (190,000) | ||
Payments on debt extinguishment and deferred financing costs | 0 | (14,070) | ||
Net-settle adjustment on restricted stock | (4,469) | (1,331) | ||
Dividends paid on common stock | (79,478) | (75,148) | ||
Net cash provided by financing activities | 16,053 | 62,397 | ||
Net decrease in cash and cash equivalents | (15,034) | (1,203) | ||
Cash and cash equivalents as of the beginning of period | 19,895 | 18,919 | ||
Cash and cash equivalents as of the end of period | $ 4,861 | $ 17,716 | 4,861 | 17,716 |
Supplemental disclosures of cash flow information: | ||||
Interest paid | 14,898 | 13,267 | ||
Supplemental schedule of noncash investing and financing activities: | ||||
Increase in dividends payable | 542 | 1,913 | ||
Transfer of pre-acquisition costs to acquired assets | 7 | 358 | ||
Sale of real estate settled with notes receivable | $ 12,000 | $ 0 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Description of Business— CareTrust REIT, Inc.’s (“CareTrust REIT” or the “Company”) primary business consists of acquiring, financing, developing and owning real property to be leased to third-party tenants in the healthcare sector. As of September 30, 2022, the Company owned and leased to independent ope rators , 221 skilled nursing facilities (“SNFs”), multi-service campuses, assisted living facilities (“ALFs”) and independent living facilities (“ILFs”) consisting of 23,135 operational beds and un its located in 29 st ates with the highest concentration of properties by rental income located in California, Texas, Louisiana, Idaho and Arizona. As of September 30, 2022, the Company also had other real estate related inves tments consisting of three real estate secured loans receivable and two mezzanine loans receivable with an aggregate carrying value of $158.7 million. COVID-19— The COVID-19 pandemic has had and may continue to have an adverse impact on the economy generally and the Company’s business, results of operations and financial condition. The duration and extent of the COVID-19 pandemic’s effect on the Company’s operational and financial performance, and the operational and financial performance of the Company’s tenants, will depend on future developments, which are highly uncertain and cannot be predicted at this time, including the rate of public acceptance and usage of vaccines and the effectiveness of vaccines in limiting the spread of COVID-19 and its variants, resurgences of COVID-19 and, in particular, new and more contagious and/or vaccine resistant variants, actions taken to contain the spread of COVID-19 and how quickly and to what extent normal economic and operating conditions can resume. The adverse impact of the COVID-19 pandemic on the Company’s business, results of operations and financial condition could be material. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —The accompanying condensed consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the disclosures required by GAAP for a complete set of annual audited financial statements. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. In the opinion of management, all adjustments which are of a normal and recurring nature and considered necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for the interim periods are not necessarily indicative of results for the full year. All intercompany transactions and account balances within the Company have been eliminated. Recent Accounting Pronouncements —In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional relief to applying reference rate reform to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”). For U.S. Dollar LIBOR, the overnight, one-month, three-month, six-mo nth and one-year LIBOR rates will be discontinued in June 2023, while other U.S. Dollar LIBOR rates were discontinued at the end of 2021. The amendments in this update are effective immediately and may be applied through December 31, 2022. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. |
Real Estate Investments, Net
Real Estate Investments, Net | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate Investments, Net | REAL ESTATE INVESTMENTS, NET The following table summarizes the Company’s real estate properties held for investment at September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Land $ 236,298 $ 251,787 Buildings and improvements 1,437,292 1,622,019 Integral equipment, furniture and fixtures 96,306 104,722 Identified intangible assets 2,832 1,257 Real estate investments 1,772,728 1,979,785 Accumulated depreciation and amortization (388,562) (389,814) Real estate investments, net $ 1,384,166 $ 1,589,971 As of September 30, 2022, 217 of the Company ’s 221 fac ilities wer e leased to various operators under triple-net leases. All of these leases contain annual escalators based on the percentage change in the Consumer Price Index (“CPI”) (but not less than zero), some of which are subject to a cap, or fixed rent escalators. During the second and third quarters of 2022, the Company entered into triple-net lease agreements for two of the Company’s 221 f acilities which are being repurposed to behavioral health facilities with rent commencing 12 to 18 months following lease commencement. Two of the Company’s 221 facilities are non-operational and are leased under a short term lease with an expected term of less than one year as of September 30, 2022. As of September 30, 2022, 19 facilities were held for sale. See Note 4, Impairment of Real Estate Investments, Assets Held for Sale, Net and Asset Sales for additional information. As of September 30, 2022, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements, was as follows (dollars in thousands): Year Amount 2022 (three months) $ 48,193 2023 192,638 2024 192,396 2025 192,555 2026 192,661 2027 189,653 Thereafter 1,001,323 Total $ 2,009,419 Tenant Purchase Options Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands): Asset Type Properties Lease Expiration Next Option Open Date Option Type (1) Current Cash Rent (2) ALF 5 (6) October 2034 1/1/2023 (3) A $ 2,287 SNF 11 November 2030 1/1/2023 (3) C 5,092 SNF 1 March 2029 4/1/2022 (4) B / C (5) 805 SNF / Campus 2 October 2032 1/1/2023 (3) B 1,065 SNF 4 November 2034 12/1/2024 (4) B 3,796 ALF 2 (6) October 2034 1/1/2026 (3) A 1,598 (1) Option type includes: A - Fixed base price plus a specified share on any appreciation. B - Fixed base price. C - Fixed capitalization rate on lease revenue. (2) Based on annualized cash revenue for contracts in place as of September 30, 2022. (3) Option window is open for six months. (4) Option window is open until the expiration of the lease term. (5) Purchase option reflects two option types. (6) Includes properties classified as held for sale as of September 30, 2022. Rental Income The following table summarizes components of the Company’s rental income (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, Rental Income 2022 2021 2022 2021 Contractual rent due (1) $ 47,015 $ 48,081 $ 140,794 $ 140,988 Straight-line rent 3 6 14 26 Adjustment for collectibility (2) — — (977) — Lease termination revenue (3) — — — 63 Total $ 47,018 $ 48,087 $ 139,831 $ 141,077 (1) Includes initial contractual cash rent and tenant operating expense reimbursements, as adjusted for applicable rental escalators and rent increases due to capital expenditures funded by the Company. For tenants on a cash basis, this represents the lesser of the amount that would be recognized on a straight-line basis or cash that has been received. Tenant operating expense reimbursements for the three months ended September 30, 2022 and 2021 were $0.7 million and $1.0 million, respectively. Tenant operating expense reimbursements for the nine months ended September 30, 2022 and 2021 were $2.0 million and $2.5 million, respectively. ( 2) During the nine months ended September 30, 2022, and in accordance with Accounting Standards Codification 842, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from four existing and former operators. As such, the Company reversed $0.7 million of operating expense reimbursements, $0.2 million of contractual rent and $0.1 million of straight-line rent during the nine months ended September 30, 2022. If lease payments are subsequently deemed probable of collection, the Company will increase rental income for such recoveries. (3) During the nine months ended September 30, 2021, in connection with the agreement to terminate its lease agreements with Metron Integrated Health Systems (“Metron”) and to sell the facilities to a third party, the Company received approximately $0.1 million from Metron affiliates. Recent Real Estate Acquisitions The following table summarizes the Company’s acquisitions for the nine months ended September 30, 2022 (dollars in thousands): Type of Property Purchase Price (1) Initial Annual Cash Rent Number of Properties Number of Beds/Units (2) Skilled nursing $ 8,918 $ 815 1 135 Multi-service campuses 13,003 1,235 1 130 Total $ 21,921 $ 2,050 2 265 (1) Purchase price includes capitalized acquisition costs. (2) The number of beds/units includes operating beds at the acquisition date. Lease Amendments Noble Partial Lease Termination and New Landmark Leases. On August 29, 2022, one ALF in Maryland was removed from a master lease with affiliates of Noble Senior Services (“Noble”) and the Company amended the applicable Noble master lease to reflect the removal of the ALF. Annual cash rent under the applicable Noble master lease decreased by approximate ly $0.5 million. In connection with the partial lease terminatio n, the Company entered into a lease with Landmark Recovery of Maryland, LLC (“Landmark Maryland”) to repurpose the facility to a be havioral health treatment center. Rent under the lease will commence 18 months following commencement of the lease term or, if earlier, upon Landmark Maryland obtaining all licensure, permits, and other required regulatory authorizations with respect to operating the facility. The lease will expire on the 20th anniversary of the rent commencement date and contains one 10-year renewal option and CPI-based rent escalators. On June 16, 2022, one ALF in Florida was removed from a master lease with affiliates of Noble and the Company amended the applicable Noble master lease to reflect the removal of the ALF. Annual cash rent under the applicable Noble master lease decreased by approximately $0.6 million. In connection with the partial lease termination, the Company entered into a lease with Landmark Recovery of Florida, LLC (“Landmark Florida”) to repurpose the facility to a behavioral health treatment center. Rent under the lease will commence one year following commencement of the lease term or, if earlier, upon Landmark Florida obtaining all licensure, permits, and other required regulatory authorizations with respect to operating the facility. The lease will expire on the 20th anniversary of the rent commencement date and contains one 10-year renewal option and CPI-based rent escalators. Pennant Partial Lease Termination and Amended Ensign Master Leases. On April 1, 2022, operations at two ALFs in California and Washington operated by affiliates of The Pennant Group, Inc. (“Pennant”) were transferred to affiliates of The Ensign Group, Inc. (“Ensign”). In connection with the transfers, the Company amended the Pennant master lease to reflect the removal of the two ALFs and amended two existing triple-net master leases with Ensign to include the two ALFs. The applicable Ensign master leases, as amended, had a remaining term at the date of amendment of approximately five years and 16 years, respectively, both with three five-year renewal options and CPI-based rent escalators. Annual cash rent under each of the two applicable Ensign master leases, as amended, increased by approximately $0.4 million and annual cash rent under the Pennant master lease, as amended, decreased by $0.8 million. On March 1, 2022, operations at one ALF in Arizona operated by affiliates of Pennant were transferred to affiliates of Ensign. In connection with the transfer, the Company amended the Pennant master lease to reflect the removal of the ALF and amended an existing triple-net master lease with Ensign to include the one ALF. The applicable Ensign master lease, as amended, had a remaining term at the date of amendment of approximately 11 years, with two five-year renewal options and CPI-based rent escalators. Annual cash rent under the applicable Ensign master lease, as amended, increased by approximately $0.3 million and annual cash rent under the Pennant master lease, as amended, decreased by the same amount. Amended Eduro Master Lease. On February 1, 2022, the Company acquired one SNF. In conjunction with the acquisition, the Company amended its existing triple-net master lease with affiliates of Eduro Healthcare, LLC (“Eduro”) to include the one SNF and extended the initial lease term. The Eduro master lease, as amended, had a remaining term at the date of amendment of approximately 12 years, wit h two five-year re newal options and CPI-based rent escalators. Annual cash rent under the Eduro master lease, as amended, increased by approximately $0.8 million. Amended WLC Master Lease. On March 1, 2022, the Company acquired one multi-service campus. In conjunction with the acquisition, the Company amended its existing triple-net master lease with affiliates of WLC Management Firm, LLC (“WLC”) to include the one multi-service campus. The WLC master lease, as amended, had a remaining term at the date of amendment of approximately 12 years, with two five-year renewal options and CPI-based rent escalators. Annual cash rent under the WLC master lease, as amended, increased by approximately $1.2 million. |
Impairment of Real Estate Inves
Impairment of Real Estate Investments, Assets Held for Sale, Net and Asset Sales | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Impairment of Real Estate Investments, Assets Held for Sale, Net and Asset Sales | IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES In connection with the Company’s ongoing review and monitoring of its investment portfolio and the performance of its tenants, during the first quarter of 2022, the Company determined to pursue the sale of 27 properties and the repurposing of three properties representing an aggregate of approximately 10% of contractual cash rent as of March 31, 2022. A s of March 31, 2022, the Company determined that these 27 properties met the criteria to be classified as assets held for sale and, in connection with this determination, the Company recognized an aggregate impairment charge of $59.7 million related to 20 of the 27 held for sale properties, which is reported in impairment of real estate investments in the condensed consolidated statements of operations for the nine months ended September 30, 2022. The impairment charge was recognized to write down the properties’ aggregate carrying value to their aggregate fair value, less estimated costs to sell. Following the asset sales and held for sale reclassifications discussed below, 19 properties continued to meet the criteria to be classified as held for sale as of September 30, 2022. During the third quarter of 2022, the Company recognized an additional aggregate impairment charge of $12.3 million related to 16 of the 19 held for sale properties to reduce their carrying value to estimated fair value less costs to sell. As of September 30, 2022, the real estate comprising the remaining 19 properties classified as held for sale had an aggregate carrying value of $77.7 million. The fair value of the assets held for sale was based on estimated sales prices, which are considered to be Level 3 measurements within the fair value hierarchy. Estimated sales prices were determined using a market approach (comparable sales model), which relies on certain assumptions by management, including: (i) comparable market transactions, (ii) estimated prices per unit, and (iii) binding agreements for sales and non-binding offers to purchase from unrelated third-parties. There are inherent uncertainties in making these assumptions. For the Company’s impairment calculations, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit ranging from $35,000 to $145,000, with a weighted average price per unit of $80,000. During the second quarter of 2022, the Company recognized an impairment charge of $1.7 million related to one SNF. The Company wrote down its carrying value of $2.8 million to its estimated fair value of $1.1 million, which is included in real estate investments, net on the Company’s condensed consolidated balance sheets. The fair value of the asset was based on comparable market transactions. For the Company’s impairment calculation, the Company’s fair value estimates primarily relied on a market approach and utilized prices per unit of $20,000. Asset Sales and Held for Sale Reclassifications During the first quarter of 2022, the Company determined that one ALF that was classified as held for sale at December 31, 2021 no longer met the held for sale criteria. The Company reclassified this ALF’s carrying value of $4.8 million out of assets held for sale and recorded catch-up depreciation of approximately $0.1 million during the nine months ended September 30, 2022. On February 22, 2022, the Company closed on the sale of one SNF, operated by affiliates of Cascadia Healthcare, LLC (“Cascadia”), consisting of 83 beds located in Washington with a carrying value of $0.8 million, for net sales proceeds of $1.0 million. During the nine months ended September 30, 2022, the Company recorded a gain of $0.2 million in connection with the sale. There was no rent reduction under the Cascadia master lease in connection with the sale. On September 29, 2022, the Company closed on the sale of six SNFs and one multi-service campus, operated by affiliates of Trio Healthcare Holdings, LLC (“Trio”), consisting of 708 beds located in Ohio for net proceeds of $32.8 million. In connection with the sale, the Company provided affiliates of the purchaser of the properties with a $7.0 million term loan that bears interest at 8.5% and has a maturity date of September 30, 2025. The Company also provided a $5.0 million bridge loan to four individuals that bears interest at 8.5% and has a maturity date of November 29, 2022. The seven properties were classified as held for sale at June 30, 2022 with a carrying value of $46.9 million |
Other Real Estate Related Inves
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable | 9 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable | OTHER REAL ESTATE RELATED INVESTMENTS, AT FAIR VALUE, AND OTHER LOANS RECEIVABLE As of September 30, 2022 and December 31, 2021, the Company’s other real estate related investments, at fair value, consisted of the following (dollars in thousands): As of September 30, 2022 Investment Facility Count and Type Principal Balance as of September 30, 2022 Book Value as of September 30, 2022 Book Value as of December 31, 2021 Weighted Average Contractual Interest Rate Maturity Date Senior secured loan receivable 18 SNF/Campus $ 75,000 $ 72,525 $ — 8.4 % [1] 6/30/2027 Secured loan receivable 5 SNF 22,250 22,423 — 9.6 % [2] 8/1/2025 Secured loan receivable 4 SNF 24,900 25,043 — 9.0 % [2] 9/8/2025 Mezzanine loan receivable 9 SNF 15,000 14,667 15,155 12.0 % 11/30/2025 Mezzanine loan receivable 18 SNF/Campus 25,000 24,004 — 11.0 % 6/30/2032 $ 162,150 $ 158,662 $ 15,155 [1] Rate is net of subservicing fee. [2] Term secured overnight financing rate (“SOFR”) used as of September 30, 2022 was 3.02%. Rates are net of subservicing fees. The following table summarizes the Company’s other real estate related investments activity for the nine months ended September 30, 2022 and 2021 (dollars in thousands): Nine Months Ended September 30, 2022 2021 Origination of other real estate related investments $ 147,150 $ — Accrued interest, net 1,063 150 Unrealized loss on other real estate related investments (4,706) — Net increase in other real estate related investments, at fair value $ 143,507 $ 150 In September 2022, the Company extended a $24.9 million term loan as part of a larger, multi-tranche real estate secured term loan facility to a skilled nursing real estate owner. The secured term loan was structured with an “A” and a “B” tranche (with the payments on the “B” tranche being subordinate to the “A” tranche pursuant to the terms of a written agreement between the lenders). The Company’s $24.9 million secured term loan constituted the entirety of the “B” tranche with its payments subordinated accordingly. The secured term loan is primarily secured by four skilled nursing faciliti es operated by an operator in the Southeast. The “B” tranche secured term loan is set to mature on September 8, 2025, with two one-year extension options and ma y (subject to certain restrictions) be prepaid in whole or in part before the maturity date for an exit fee ranging from 1% to 3% of the loan plus unpaid interest payments; provided, however, that no exit fee is payable in connection with portions of the loan being refinanced pursuant to a loan (or loans) provided by or insured by the United States Department of Housing and Urban Development, Federal Housing Administration, or a similar governmental authority. The “B” tranche secured term loan provides for an earnout advance of $4.7 million if certain conditions are met. The "B" tranche secured term loan bears interest at a rate based on term SOFR, calculated as a fraction, with the numerator being the difference between (i) the monthly payment of interest of term SOFR plus a 4.50% spread and (ii) the amount of such monthly payment of interest of term SOFR plus a 2.85% spread, and with the denominator being the average daily balance of the outstanding principal amount during the applicable month, with such fraction expressed as a percentage and annualized, with a term SOFR floor of 1.0% and less a subservicing fee of 100% over 9.00%. The “B” tranche secured term loan requires monthly interest payments. The Company elected the fair value option for the “B” tranche secured term loan. In August 2022, the Company extended a $22.3 million term loan as part of a larger, multi-tranche real estate secured term loan facility to a skilled nursing real estate owner. The secured term loan was structured with an “A” and a “B” tranche (with the payments on the “B” tranche being subordinate to the “A” tranche pursuant to the terms of a written agreement between the lenders). The Company’s $22.3 million secured term loan constituted the entirety of the “B” tranche with its payments subordinated accordingly. The secured term loan is primarily secured by five skilled nursing facilities, four of which will be operated by an existing operator and one of which will be operate d by a large, regional skilled nursing operator. The “B” tranche secured term loan is set to mature on August 1, 2025, with two one-year extension options and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date for an ex it fee ranging from 2% to 3% of the loan plus unpaid interest payments; provided, however, that no exit fee is payable in connection with portions of the loan being refinanced pursuant to a loan (or loans) provided by or insured by the United States Department of Housing and Urban Development, Federal Housing Administration, or a similar governmental authority. The "B" tranche secured term loan bears interest at a rate based on term secured overnight financing rate, calculated as a fraction, with the numerator being the difference between (i) the monthly payment of interest of term SOFR plus a 4.25% spread and (ii) the amount of such monthly payment of interest of term SOFR plus a 2.75% spread, and with the denominator being the average daily balance of the outstanding principal amount during the applicable month, with such fraction expressed as a percentage and annualized, with a term SOFR floor of 1.0% and less a subservicing fee of 50% over 8.25%. The “B” tranche secured term loan requires monthly interest payments. The Company elected the fair value option for the “B” tranche secured term loan. In June 2022, the Company extended a $75.0 million term loan to a skilled nursing real estate owner as part of a larger, multi-tranche, senior secured term loan facility. The senior secured term loan was structured with an “A” tranche, a “B” tranche, and a “C” tranche (with the “C” tranche being the most subordinate). The Company’s $75.0 million term loan constituted the entirety of the “C” tranche with its payments subordinated accordingly. The senior secured term loan facility is secured by an 18-facility skilled nursing portfolio in the Mid-Atlantic region, operated by a large, regional skilled nursing operator. In connection with the senior secured term loan facility and the borrower’s acquisition of the skilled nursing portfolio, the Company also extended to the borrower group a $25.0 million mezzanine loan. The “C” tranche of the senior secured term loan bears interest at 8.5%, less a servicing fee equal to the positive difference, if any, between the lesser of the contractual interest payment and actual payment of interest made by the borrower and a hypothetical interest payment at a rate of 8.25%, resulting in an effective interest rate of 8.375%. The “C” tranche senior secured term loan is set to mature on June 30, 2027 and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date for an exit fee ranging from 1% to 3% of the loan plus unpaid interest payments through the end of the month of prepayment; provided, however, that no exit fee is payable in connection with portions of the loan being refinanced pursuant to a loan (or loans) provided by or insured by the United States Department of Housing and Urban Development, Federal Housing Administration, or a similar governmental authority. The mezzanine loan bears interest at 11% and is secured by a pledge of membership interests in an up-tier affiliate of the borrower group. The mezzanine loan is set to mature on June 30, 2032, and may (subject to certain restrictions) be prepaid in whole or in part before the maturity date, commencing on June 30, 2029, for an exit fee ranging from 1% to 3% of the loan plus unpaid interest payments through the date of prepayment. The “C” tranche senior secured term loan and mezzanine loan both require monthly interest payments. The Company elected the fair value option for both the “C” tranche term loan and the mezzanine loan. The fair value option is elected on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. The Company’s primary purpose in electing the fair value option for these instruments was to align with management’s view of the underlying economics of the loans and the manner in which they are managed. As of September 30, 2022 and December 31, 2021, the Company’s other loans receivable, included in prepaid expenses and other assets, net on the Company’s condensed consolidated balance sheets, consisted of the following (dollars in thousands): As of September 30, 2022 Investment Principal Balance as of September 30, 2022 Book Value as of September 30, 2022 Book Value as of December 31, 2021 Weighted Average Contractual Interest Rate Maturity Date Other loans receivable $ 14,738 $ 14,742 $ 3,161 8.5 % 11/29/2022 - 9/30/2025 Expected credit loss (2,094) (2,094) — Total $ 12,644 $ 12,648 $ 3,161 The following table summarizes the Company’s other loans receivable activity for the nine months ended September 30, 2022 and 2021 (dollars in thousands): Nine Months Ended September 30, 2022 2021 Origination of loans receivable $ 14,500 $ 700 Principal payments (416) (172) Accrued interest, net (3) 39 Expected credit loss (5,344) — Loan loss recovery 750 — Net increase in other loans receivable $ 9,487 $ 567 Expected credit losses and recoveries are recorded in provision for loan losses, net in the condensed consolidated statements of operations. During the nine months ended September 30, 2022, the Company recorded a $4.6 million expected credit loss related to two other loans receivable that were placed on non-accrual status, net of a loan loss recovery of $0.8 million related to a loan previously written-off. During the three months ended September 30, 2022, the Company wrote-off $2.5 million, related to one other loan receivable that was previously fully reserved, in connection with the sale of six SNFs and one multi-service campus. As of December 31, 2021, the Company had no expected credit loss and did not consider any loan receivable investments to be impaired. The following table summarizes the interest and other income recognized from the Company’s loans receivable and other investments during the three and nine months ended September 30, 2022 and 2021 (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, Investment 2022 2021 2022 2021 Secured loans receivable $ 2,098 $ — $ 2,115 $ — Mezzanine loans receivable 1,163 460 2,326 1,365 Other 14 58 50 172 Total $ 3,275 $ 518 $ 4,491 $ 1,537 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. GAAP guidance defines three levels of inputs that may be used to measure fair value: 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 or liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 – Unobservable inputs reflect the entity’s own assumptions about the 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. Changes in the type of inputs may result in a reclassification for certain assets. The Company does not expect that changes in classifications between levels will be frequent. Items Measured at Fair Value on a Recurring Basis The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those instruments fall (dollars in thousands): Level 1 Level 2 Level 3 Balance as of September 30, 2022 Assets: Secured loans receivable $ — $ — $ 119,991 $ 119,991 Mezzanine loans receivable — — 38,671 38,671 Total $ — $ — $ 158,662 $ 158,662 Level 1 Level 2 Level 3 Balance as of December 31, 2021 Assets: Mezzanine loan receivable $ — $ — $ 15,155 $ 15,155 The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs (dollars in thousands): Investments in Real Estate Secured Loans Investments in Mezzanine Loans Balance at December 31, 2021 $ — $ 15,155 Loan originations 122,150 25,000 Accrued interest, net 839 224 Unrealized loss on other real estate related investments (2,998) (1,708) Balance as of September 30, 2022 $ 119,991 $ 38,671 Real estate secured and mezzanine loans receivables: The fair value of the secured and mezzanine loans receivables were estimated using an internal valuation model that considered the expected future cash flows of the investment, the underlying collateral value, market interest rates and other credit enhancements. As such, the Company classifies each instrument as Level 3 due to the significant unobservable inputs used in determining market interest rates for investments with similar terms. During the three months ended September 30, 2022, the Company recorded an unrealized loss of $4.7 million on the Company’s secured and mezzanine loans receivable due to rising interest rates. Future changes in market interest rates could materially impact the estimated discounted cash flows that are used to determine the fair value of the secured and mezzanine loans receivable. As of September 30, 2022 and December 31, 2021, the Company did not have any loans measured at fair value that were 90 days or more past due. The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in secured and mezzanine loans receivables as of September 30, 2022 : Type Book Value as of September 30, 2022 Valuation Technique Unobservable Inputs Range Secured loans receivable $ 119,991 Discounted cash flow Discount Rate 9% - 13% Mezzanine loans receivable 38,671 Discounted cash flow Discount Rate 12% - 14% For the three and nine months ended September 30, 2022, there were no classification changes in assets and liabilities with Level 3 inputs in the fair value hierarchy. Items Disclosed at Fair Value Considerable judgment is necessary to estimate the fair value disclosure of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the face value, carrying amount and fair value of the Notes (as defined in Note 7, Debt, below) as of September 30, 2022 and December 31, 2021 using Level 2 inputs is as follows (dollars in thousands): September 30, 2022 December 31, 2021 Level Face Carrying Fair Face Carrying Fair Financial liabilities: Senior unsecured notes payable 2 $ 400,000 $ 394,928 $ 331,000 $ 400,000 $ 394,262 $ 410,500 Cash and cash equivalents, accounts and other receivables, accounts payable, and accrued liabilities: The carrying values for these instruments approximate their fair values due to the short-term nature of these instruments. Senior unsecured notes payable: The fair value of the Notes was determined using third-party quotes derived from orderly trades. Unsecured revolving credit facility and senior unsecured term loan: The fair values approximate their carrying values as the interest rates are variable and approximate prevailing market interest rates for similar debt arrangements. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes the balance of the Company’s indebtedness as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Principal Amount Deferred Loan Fees Carrying Value Principal Amount Deferred Loan Fees Carrying Value Senior unsecured notes payable $ 400,000 $ (5,072) $ 394,928 $ 400,000 $ (5,738) $ 394,262 Senior unsecured term loan 200,000 (705) 199,295 200,000 (864) 199,136 Unsecured revolving credit facility 180,000 — 180,000 80,000 — 80,000 $ 780,000 $ (5,777) $ 774,223 $ 680,000 $ (6,602) $ 673,398 Senior Unsecured Notes Payable 2028 Senior Notes. On June 17, 2021, the Company’s wholly owned subsidiary, CTR Partnership, L.P. (the “Operating Partnership”), and its wholly owned subsidiary, CareTrust Capital Corp. (together with the Operating Partnership, the “Issuers”), completed a private offering of $400.0 million aggregate principal amount of 3.875% Senior Notes due 2028 (the “Notes”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended. The Notes were issued at par, resulting in gross proceeds of $400.0 million and net proceeds of approximately $393.8 million after deducting underwriting fees and other offering expenses. The Notes mature on June 30, 2028. The Notes accrue interest at a rate of 3.875% per annum payable semiannually in arrears on June 30 and December 30 of each year, commencing on December 30, 2021. The Issuers may redeem some or all of the Notes at any time prior to March 30, 2028 at a price equal to 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest on the Notes, if any, to, but not including, the redemption date, plus a “make-whole” premium. At any time on or after March 30, 2028, the Issuers may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed plus accrued interest on the Notes, if any, to, but not including, the redemption date. In addition, at any time on or prior to June 30, 2024, up to 40% of the aggregate principal amount of the Notes may be redeemed with the net proceeds of certain equity offerings at a redemption price of 103.875% of the aggregate principal amount of Notes to be redeemed plus accrued and unpaid interest on the Notes, if any, to, but not including, the redemption date. If certain changes of control of the Company occur, the Issuers will be required to make an offer to holders of the Notes to repurchase their Notes at a price of 101% of their principal amount plus accrued and unpaid interest, if any, to, but not including, the repurchase date. The obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by the Company and all of CareTrust’s existing and future subsidiaries (other than the Issuers) that guarantee obligations under the Amended Credit Facility (as defined below); provided, however, that such guarantees are subject to automatic release under certain customary circumstances. The indenture governing the Notes contains customary covenants such as limiting the ability of the Company and its restricted subsidiaries to: incur or guarantee additional indebtedness; incur or guarantee secured indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock; make certain investments or other restricted payments; sell assets; enter into transactions with affiliates; merge or consolidate or sell all or substantially all of their assets; and create restrictions on the ability of the Issuers and their restricted subsidiaries to pay dividends or other amounts to the Issuers. The indenture governing the Notes also requires the Company and its restricted subsidiaries to maintain a specified ratio of unencumbered assets to unsecured indebtedness. These covenants are subject to a number of important and significant limitations, qualifications and exceptions. The indenture governing the Notes also contains customary events of default. As of September 30, 2022, the Company was in compliance with all applicable financial covenants under the indenture governing the Notes. Unsecured Revolving Credit Facility and Term Loan On February 8, 2019, the Operating Partnership, as the borrower, the Company, as guarantor, CareTrust GP, LLC, and certain of the Operating Partnership’s wholly owned subsidiaries entered into an amended and restated credit and guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender, and the lenders party thereto (the “Amended Credit Agreement”). The Amended Credit Agreement, which amended and restated the Company’s prior credit agreement, provides for: (i) an unsecured revolving credit facility (the “Revolving Facility”) with revolving commitments in an aggregate principal amount of $600.0 million, including a letter of credit subfacility for 10% of the then available revolving commitments and a swingline loan subfacility for 10% of the then available revolving commitments and (ii) an unsecured term loan credit facility (the “Term Loan” and, together with the Revolving Facility, the “Amended Credit Facility”) in an aggregate principal amount of $200.0 million. Borrowing availability under the Revolving Facility is subject to no default or event of default under the Amended Credit Agreement having occurred at the time of borrowing. Future borrowings under the Amended Credit Facility will be used for working capital purposes, for capital expenditures, to fund acquisitions and for general corporate purposes. The interest rates applicable to loans under the Revolving Facility are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.10% to 0.55% per annum or LIBOR plus a margin ranging from 1.10% to 1.55% per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt). The interest rates applicable to loans under the Term Loan are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.50% to 1.20% per annum or LIBOR plus a margin ranging from 1.50% to 2.20% per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt). In addition, the Operating Partnership will pay a facility fee on the revolving commitments under the Revolving Facility ranging from 0.15% to 0.35% per annum, based on the debt to asset value ratio of the Company and its consolidated subsidiaries (unless the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt and the Operating Partnership elects to decrease the applicable margin as described above, in which case the Operating Partnership will pay a facility fee on the revolving commitments ranging from 0.125% to 0.30% per annum based on the credit ratings of the Company’s senior long-term unsecured debt). As of September 30, 2022, the Operating Partnership had $200.0 million of borrowings outstanding under the Term Loan and $180.0 million outstanding under the Revolving Facility. The Revolving Facility has a maturity date of February 8, 2023, and includes, at the sole discretion of the Operating Partnership, two, six-month extension options. The Term Loan has a maturity date of February 8, 2026. The Amended Credit Facility is guaranteed, jointly and severally, by the Company and its wholly owned subsidiaries that are party to the Amended Credit Agreement (other than the Operating Partnership). The Amended Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend organizational documents and pay certain dividends and other restricted payments. The Amended Credit Agreement requires the Company to comply with financial maintenance covenants to be tested quarterly, consisting of a maximum debt to asset value ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, a maximum cash distributions to operating income ratio, a maximum secured debt to asset value ratio, a maximum secured recourse debt to asset value ratio, a maximum unsecured debt to unencumbered properties asset value ratio, a minimum unsecured interest coverage ratio and a minimum rent coverage ratio. The Amended Credit Agreement also contains certain customary events of default, including the failure to make timely payments under the Amended Credit Facility or other material indebtedness, the failure to satisfy certain covenants (including the financial maintenance covenants), the occurrence of change of control and specified events of bankruptcy and insolvency. As of September 30, 2022, the Company was in compliance with all applicable financial covenants under the Amended Credit Agreement. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | EQUITY Common Stock At-The-Market Offering —On March 10, 2020, the Company entered into a new equity distribution agreement to issue and sell, from time to time, up to $500.0 million in aggregate offering price of its common stock through an “at-the-market” equity offering program (the “ATM Program”). There was no ATM Program activity for the three and nine months ended September 30, 2022 and the three months ended September 30, 2021. The following table summarizes the ATM Program activity for the nine months ended September 30, 2021 (in thousands, except per share amounts). For the Nine Months Ended September 30, 2021 Number of shares 990 Average sales price per share $ 23.74 Gross proceeds (1) $ 23,505 (1) Total gross proceeds is before $0.3 million of commissions paid to the sales agents during the nine months ended September 30, 2021 under the ATM Program. As of September 30, 2022, the Company had $476.5 million available for future issuances under the ATM Program. Share Repurchase Program —On March 20, 2020, the Company’s Board of Directors authorized a share repurchase program for up to $150.0 million of outstanding shares of the Company’s common stock (the “Repurchase Program”). Repurchases under the Repurchase Program, which expires on March 31, 2023, may be made through open market purchases, privately negotiated transactions, structured or derivative transactions, including accelerated share repurchase transactions, or other methods of acquiring shares, in each case subject to market conditions and at such times as shall be permitted by applicable securities laws and determined by management. Repurchases under the Repurchase Program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended. The Company expects to finance any share repurchases under the Repurchase Program using available cash and may also use short-term borrowings under the Revolving Facility. Through September 30, 2022, t he Company has not repurchased any shares of common stock under the Repurchase Program. As of September 30, 2022 , $150.0 million remained available under the Repurchase Program. The Repurchase Program may be modified, discontinued or suspended at any time. Dividends on Common Stock —The following table summarizes the cash dividends per share of common stock declared by the Company’s Board of Directors for the first nine months of 2022 (dollars in thousands, except per share amounts): For the Three Months Ended March 31, 2022 June 30, 2022 September 30, 2022 Dividends declared per share $ 0.275 $ 0.275 $ 0.275 Dividends payment date April 15, 2022 July 15, 2022 October 14, 2022 Dividends payable as of record date (1) $ 26,691 $ 26,683 $ 26,683 Dividends record date March 31, 2022 June 30, 2022 September 30, 2022 (1) Dividends payable includes dividends on performance stock awards that will be paid if and when the shares subject to such awards vest. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION All stock-based awards are subject to the terms of the CareTrust REIT, Inc. and CTR Partnership, L.P. Incentive Award Plan (the “Plan”). The Plan provides for the granting of stock-based compensation, including stock options, restricted stock, performance awards, restricted stock units, relative total stockholder return based stock awards (“TSR Awards”) and other incentive awards to officers, employees and directors in connection with their employment with or services provided to the Company. Under the Plan, 5,000,000 shares have been authorized for awards. Under the Plan, restricted stock awards (“RSAs”) granted in fiscal 2022 to employees vest in equal annual installments beginning on the first anniversary of the grant date over a three year period. RSAs granted to non-employee members of the Board of Directors (“Board Awards”) vest in full on the earlier to occur of the Company’s next annual meeting of stockholders or the first anniversary of the grant date. Performance stock awards (“PSA”) granted to employees are subject to both time and performance based conditions and vest over a one one The following table summarizes the RSAs and PSAs activity for the nine months ended September 30, 2022: Shares Weighted Average Share Price Unvested balance at December 31, 2021 891,333 $ 20.91 Granted: RSAs 9,684 17.56 Board Awards 25,992 16.93 Vested (501,479) 20.60 Forfeited (1,900) 21.50 Unvested balance at September 30, 2022 423,630 $ 20.96 As of September 30, 2022, the weighted-average remaining vesting period of such awards w as 1.6 years. The following table summarizes the stock-based compensation expense recognized for the periods presented (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Stock-based compensation expense $ 1,380 $ 1,802 $ 4,295 $ 5,197 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | EARNINGS (LOSS) PER COMMON SHARE The following table presents the calculation of basic and diluted earnings (loss) per common share (“EPS”) for the Company’s common stock for the three and nine months ended September 30, 2022 and 2021, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 709 $ 11,918 $ (21,886) $ 53,721 Less: Net income allocated to participating securities (94) (116) (305) (350) Numerator for basic and diluted earnings available to common stockholders $ 615 $ 11,802 $ (22,191) $ 53,371 Denominator: Weighted-average basic common shares outstanding 96,605 96,297 96,527 95,922 Dilutive performance stock awards 20 — — 15 Weighted-average diluted common shares outstanding 96,625 96,297 96,527 95,937 Earnings (loss) per common share, basic $ 0.01 $ 0.12 $ (0.23) $ 0.56 Earnings (loss) per common share, diluted $ 0.01 $ 0.12 $ (0.23) $ 0.56 Antidilutive unvested RSAs, PSAs and TSR Awards excluded from the computation 341 535 478 436 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company and its subsidiaries are and may become from time to time a party to various claims and lawsuits arising in the ordinary course of business, which are not individually or in the aggregate anticipated to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Claims and lawsuits may include matters involving general or professional liability asserted against the Company’s tenants, which are the responsibility of the Company’s tenants and for which the Company is entitled to be indemnified by its tenants under the insurance and indemnification provisions in the applicable leases. Capital expenditures for each property leased under the Company’s triple-net leases are generally the responsibility of the tenant, except that, for the facilities leased to subsidiaries of Ensign and Pennant, the tenant will have an option to require the Company to finance certain capital expenditures up to an aggregate of 20% of the Company’s initial investment in such property, subject to a corresponding rent increase at the time of funding. For the Company’s other triple-net master leases, the tenants also have the option to request capital expenditure funding that would generally be subject to a corresponding rent increase at the time of funding, which are subject to tenant compliance with the conditions to the Company’s approval and funding of their requests. As of September 30, 2022, the Company had committed to fund expansions, construction and capital improvements at certain triple-net leased facilities totali ng $16.1 million, of which $3.9 million is subject to rent increase at the time of funding. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | CONCENTRATION OF RISKConcentrations of credit risk arise when one or more tenants, operators, or obligors related to the Company’s investments are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. Major operator concentration - The Company has operators from which it derived 10% or more of its rental revenue for the three and nine months ended September 30, 2022 and 2021. The following table sets forth information regarding the Company’s major operators as of September 30, 2022 and 2021: Number of Facilities Number of Beds/Units Percentage of Total Revenue (1) Operator SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended Nine Months Ended September 30, 2022 Ensign (2) 83 8 7 8,741 997 661 36 % 35 % Priority Management Group 13 2 — 1,742 402 — 16 % 16 % September 30, 2021 Ensign (2) 83 8 4 8,756 997 395 33 % 32 % Priority Management Group 13 2 — 1,742 402 — 15 % 15 % (1) The Company’s rental income, exclusive of operating expense reimbursements. (2) Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at http://www.sec.gov. The Company has not verified this information through an independent investigation or otherwise. Major geographic concentration – The following table provides information regarding the Company’s concentrations with respect to certain states, from which the Company derived 10% or more of its rental revenue for the three and nine months ended September 30, 2022: Number of Facilities Number of Beds/Units Percentage of Total Revenue (1) State SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 CA 27 8 5 3,048 1,359 437 27 % 27 % TX 38 3 3 4,849 536 242 22 % 22 % (1) The Company’s rental income, exclusive of operating expense reimbursements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The accompanying condensed consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the disclosures required by GAAP for a complete set of annual audited financial statements. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. In the opinion of management, all adjustments which are of a normal and recurring nature and considered necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for the interim periods are not necessarily indicative of results for the full year. All intercompany transactions and account balances within the Company have been eliminated. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements —In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional relief to applying reference rate reform to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”). For U.S. Dollar LIBOR, the overnight, one-month, three-month, six-mo nth and one-year LIBOR rates will be discontinued in June 2023, while other U.S. Dollar LIBOR rates were discontinued at the end of 2021. The amendments in this update are effective immediately and may be applied through December 31, 2022. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements | The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. GAAP guidance defines three levels of inputs that may be used to measure fair value: 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 or liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 – Unobservable inputs reflect the entity’s own assumptions about the 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. Changes in the type of inputs may result in a reclassification for certain assets. The Company does not expect that changes in classifications between levels will be frequent. |
Real Estate Investments, Net (T
Real Estate Investments, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Summary of Investment in Owned Properties | The following table summarizes the Company’s real estate properties held for investment at September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Land $ 236,298 $ 251,787 Buildings and improvements 1,437,292 1,622,019 Integral equipment, furniture and fixtures 96,306 104,722 Identified intangible assets 2,832 1,257 Real estate investments 1,772,728 1,979,785 Accumulated depreciation and amortization (388,562) (389,814) Real estate investments, net $ 1,384,166 $ 1,589,971 |
Schedule of Total Future Contractual Minimum Rental Income | As of September 30, 2022, the Company’s total future contractual minimum rental income for all of its tenants, excluding operating expense reimbursements, was as follows (dollars in thousands): Year Amount 2022 (three months) $ 48,193 2023 192,638 2024 192,396 2025 192,555 2026 192,661 2027 189,653 Thereafter 1,001,323 Total $ 2,009,419 |
Schedule Of Tenant Purchase Options | Certain of the Company’s operators hold purchase options allowing them to acquire properties they currently lease from the Company. A summary of these purchase options is presented below (dollars in thousands): Asset Type Properties Lease Expiration Next Option Open Date Option Type (1) Current Cash Rent (2) ALF 5 (6) October 2034 1/1/2023 (3) A $ 2,287 SNF 11 November 2030 1/1/2023 (3) C 5,092 SNF 1 March 2029 4/1/2022 (4) B / C (5) 805 SNF / Campus 2 October 2032 1/1/2023 (3) B 1,065 SNF 4 November 2034 12/1/2024 (4) B 3,796 ALF 2 (6) October 2034 1/1/2026 (3) A 1,598 (1) Option type includes: A - Fixed base price plus a specified share on any appreciation. B - Fixed base price. C - Fixed capitalization rate on lease revenue. (2) Based on annualized cash revenue for contracts in place as of September 30, 2022. (3) Option window is open for six months. (4) Option window is open until the expiration of the lease term. (5) Purchase option reflects two option types. (6) Includes properties classified as held for sale as of September 30, 2022. |
Schedule of Rental Income | The following table summarizes components of the Company’s rental income (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, Rental Income 2022 2021 2022 2021 Contractual rent due (1) $ 47,015 $ 48,081 $ 140,794 $ 140,988 Straight-line rent 3 6 14 26 Adjustment for collectibility (2) — — (977) — Lease termination revenue (3) — — — 63 Total $ 47,018 $ 48,087 $ 139,831 $ 141,077 (1) Includes initial contractual cash rent and tenant operating expense reimbursements, as adjusted for applicable rental escalators and rent increases due to capital expenditures funded by the Company. For tenants on a cash basis, this represents the lesser of the amount that would be recognized on a straight-line basis or cash that has been received. Tenant operating expense reimbursements for the three months ended September 30, 2022 and 2021 were $0.7 million and $1.0 million, respectively. Tenant operating expense reimbursements for the nine months ended September 30, 2022 and 2021 were $2.0 million and $2.5 million, respectively. ( 2) During the nine months ended September 30, 2022, and in accordance with Accounting Standards Codification 842, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from four existing and former operators. As such, the Company reversed $0.7 million of operating expense reimbursements, $0.2 million of contractual rent and $0.1 million of straight-line rent during the nine months ended September 30, 2022. If lease payments are subsequently deemed probable of collection, the Company will increase rental income for such recoveries. (3) During the nine months ended |
Schedule of Real Estate Acquisitions | The following table summarizes the Company’s acquisitions for the nine months ended September 30, 2022 (dollars in thousands): Type of Property Purchase Price (1) Initial Annual Cash Rent Number of Properties Number of Beds/Units (2) Skilled nursing $ 8,918 $ 815 1 135 Multi-service campuses 13,003 1,235 1 130 Total $ 21,921 $ 2,050 2 265 (1) Purchase price includes capitalized acquisition costs. |
Other Real Estate Related Inv_2
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Other Real Estate Related Investments, At Fair Value | As of September 30, 2022 and December 31, 2021, the Company’s other real estate related investments, at fair value, consisted of the following (dollars in thousands): As of September 30, 2022 Investment Facility Count and Type Principal Balance as of September 30, 2022 Book Value as of September 30, 2022 Book Value as of December 31, 2021 Weighted Average Contractual Interest Rate Maturity Date Senior secured loan receivable 18 SNF/Campus $ 75,000 $ 72,525 $ — 8.4 % [1] 6/30/2027 Secured loan receivable 5 SNF 22,250 22,423 — 9.6 % [2] 8/1/2025 Secured loan receivable 4 SNF 24,900 25,043 — 9.0 % [2] 9/8/2025 Mezzanine loan receivable 9 SNF 15,000 14,667 15,155 12.0 % 11/30/2025 Mezzanine loan receivable 18 SNF/Campus 25,000 24,004 — 11.0 % 6/30/2032 $ 162,150 $ 158,662 $ 15,155 [1] Rate is net of subservicing fee. [2] Term secured overnight financing rate (“SOFR”) used as of September 30, 2022 was 3.02%. Rates are net of subservicing fees. |
Schedule of Other Real Estate Related Investment Activity | The following table summarizes the Company’s other real estate related investments activity for the nine months ended September 30, 2022 and 2021 (dollars in thousands): Nine Months Ended September 30, 2022 2021 Origination of other real estate related investments $ 147,150 $ — Accrued interest, net 1,063 150 Unrealized loss on other real estate related investments (4,706) — Net increase in other real estate related investments, at fair value $ 143,507 $ 150 As of September 30, 2022 and December 31, 2021, the Company’s other loans receivable, included in prepaid expenses and other assets, net on the Company’s condensed consolidated balance sheets, consisted of the following (dollars in thousands): As of September 30, 2022 Investment Principal Balance as of September 30, 2022 Book Value as of September 30, 2022 Book Value as of December 31, 2021 Weighted Average Contractual Interest Rate Maturity Date Other loans receivable $ 14,738 $ 14,742 $ 3,161 8.5 % 11/29/2022 - 9/30/2025 Expected credit loss (2,094) (2,094) — Total $ 12,644 $ 12,648 $ 3,161 |
Schedule of Loan Receivable Activity | The following table summarizes the Company’s other loans receivable activity for the nine months ended September 30, 2022 and 2021 (dollars in thousands): Nine Months Ended September 30, 2022 2021 Origination of loans receivable $ 14,500 $ 700 Principal payments (416) (172) Accrued interest, net (3) 39 Expected credit loss (5,344) — Loan loss recovery 750 — Net increase in other loans receivable $ 9,487 $ 567 |
Schedule of Interest and Other Income | The following table summarizes the interest and other income recognized from the Company’s loans receivable and other investments during the three and nine months ended September 30, 2022 and 2021 (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, Investment 2022 2021 2022 2021 Secured loans receivable $ 2,098 $ — $ 2,115 $ — Mezzanine loans receivable 1,163 460 2,326 1,365 Other 14 58 50 172 Total $ 3,275 $ 518 $ 4,491 $ 1,537 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Items Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those instruments fall (dollars in thousands): Level 1 Level 2 Level 3 Balance as of September 30, 2022 Assets: Secured loans receivable $ — $ — $ 119,991 $ 119,991 Mezzanine loans receivable — — 38,671 38,671 Total $ — $ — $ 158,662 $ 158,662 Level 1 Level 2 Level 3 Balance as of December 31, 2021 Assets: Mezzanine loan receivable $ — $ — $ 15,155 $ 15,155 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table details the Company’s assets measured at fair value on a recurring basis using Level 3 inputs (dollars in thousands): Investments in Real Estate Secured Loans Investments in Mezzanine Loans Balance at December 31, 2021 $ — $ 15,155 Loan originations 122,150 25,000 Accrued interest, net 839 224 Unrealized loss on other real estate related investments (2,998) (1,708) Balance as of September 30, 2022 $ 119,991 $ 38,671 |
Schedule of Quantitative Information About Unobservable Inputs Related To Level 3 Fair Value Measurements | The following table shows the quantitative information about unobservable inputs related to the Level 3 fair value measurements comprising the investments in secured and mezzanine loans receivables as of September 30, 2022 : Type Book Value as of September 30, 2022 Valuation Technique Unobservable Inputs Range Secured loans receivable $ 119,991 Discounted cash flow Discount Rate 9% - 13% Mezzanine loans receivable 38,671 Discounted cash flow Discount Rate 12% - 14% |
Summary of Face Value, Carrying Amount and Fair Value of Financial Instruments | A summary of the face value, carrying amount and fair value of the Notes (as defined in Note 7, Debt, below) as of September 30, 2022 and December 31, 2021 using Level 2 inputs is as follows (dollars in thousands): September 30, 2022 December 31, 2021 Level Face Carrying Fair Face Carrying Fair Financial liabilities: Senior unsecured notes payable 2 $ 400,000 $ 394,928 $ 331,000 $ 400,000 $ 394,262 $ 410,500 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | The following table summarizes the balance of the Company’s indebtedness as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Principal Amount Deferred Loan Fees Carrying Value Principal Amount Deferred Loan Fees Carrying Value Senior unsecured notes payable $ 400,000 $ (5,072) $ 394,928 $ 400,000 $ (5,738) $ 394,262 Senior unsecured term loan 200,000 (705) 199,295 200,000 (864) 199,136 Unsecured revolving credit facility 180,000 — 180,000 80,000 — 80,000 $ 780,000 $ (5,777) $ 774,223 $ 680,000 $ (6,602) $ 673,398 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of the At-The-Market Offering Program | The following table summarizes the ATM Program activity for the nine months ended September 30, 2021 (in thousands, except per share amounts). For the Nine Months Ended September 30, 2021 Number of shares 990 Average sales price per share $ 23.74 Gross proceeds (1) $ 23,505 |
Schedule of Dividends on Common Stock | The following table summarizes the cash dividends per share of common stock declared by the Company’s Board of Directors for the first nine months of 2022 (dollars in thousands, except per share amounts): For the Three Months Ended March 31, 2022 June 30, 2022 September 30, 2022 Dividends declared per share $ 0.275 $ 0.275 $ 0.275 Dividends payment date April 15, 2022 July 15, 2022 October 14, 2022 Dividends payable as of record date (1) $ 26,691 $ 26,683 $ 26,683 Dividends record date March 31, 2022 June 30, 2022 September 30, 2022 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Award and Performance Award Activity | The following table summarizes the RSAs and PSAs activity for the nine months ended September 30, 2022: Shares Weighted Average Share Price Unvested balance at December 31, 2021 891,333 $ 20.91 Granted: RSAs 9,684 17.56 Board Awards 25,992 16.93 Vested (501,479) 20.60 Forfeited (1,900) 21.50 Unvested balance at September 30, 2022 423,630 $ 20.96 |
Schedule of Stock-Based Compensation Expense | The following table summarizes the stock-based compensation expense recognized for the periods presented (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Stock-based compensation expense $ 1,380 $ 1,802 $ 4,295 $ 5,197 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Common Shares Outstanding Used in Calculation of Basic EPS to Diluted EPS | The following table presents the calculation of basic and diluted earnings (loss) per common share (“EPS”) for the Company’s common stock for the three and nine months ended September 30, 2022 and 2021, and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 709 $ 11,918 $ (21,886) $ 53,721 Less: Net income allocated to participating securities (94) (116) (305) (350) Numerator for basic and diluted earnings available to common stockholders $ 615 $ 11,802 $ (22,191) $ 53,371 Denominator: Weighted-average basic common shares outstanding 96,605 96,297 96,527 95,922 Dilutive performance stock awards 20 — — 15 Weighted-average diluted common shares outstanding 96,625 96,297 96,527 95,937 Earnings (loss) per common share, basic $ 0.01 $ 0.12 $ (0.23) $ 0.56 Earnings (loss) per common share, diluted $ 0.01 $ 0.12 $ (0.23) $ 0.56 Antidilutive unvested RSAs, PSAs and TSR Awards excluded from the computation 341 535 478 436 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk | Major operator concentration - The Company has operators from which it derived 10% or more of its rental revenue for the three and nine months ended September 30, 2022 and 2021. The following table sets forth information regarding the Company’s major operators as of September 30, 2022 and 2021: Number of Facilities Number of Beds/Units Percentage of Total Revenue (1) Operator SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended Nine Months Ended September 30, 2022 Ensign (2) 83 8 7 8,741 997 661 36 % 35 % Priority Management Group 13 2 — 1,742 402 — 16 % 16 % September 30, 2021 Ensign (2) 83 8 4 8,756 997 395 33 % 32 % Priority Management Group 13 2 — 1,742 402 — 15 % 15 % (1) The Company’s rental income, exclusive of operating expense reimbursements. (2) Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at http://www.sec.gov. The Company has not verified this information through an independent investigation or otherwise. Major geographic concentration – The following table provides information regarding the Company’s concentrations with respect to certain states, from which the Company derived 10% or more of its rental revenue for the three and nine months ended September 30, 2022: Number of Facilities Number of Beds/Units Percentage of Total Revenue (1) State SNF Campus ALF/ILF SNF Campus ALF/ILF Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 CA 27 8 5 3,048 1,359 437 27 % 27 % TX 38 3 3 4,849 536 242 22 % 22 % (1) The Company’s rental income, exclusive of operating expense reimbursements. |
Organization (Details)
Organization (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 USD ($) loan bed | Sep. 30, 2022 state | Sep. 30, 2022 facility | Dec. 31, 2021 USD ($) | |
Real Estate Properties [Line Items] | ||||
Number of facilities | 19 | 19 | ||
Number of states with properties | state | 29 | |||
Aggregate carrying value | $ | $ 158,662 | $ 15,155 | ||
Secured Loan Receivable | ||||
Real Estate Properties [Line Items] | ||||
Number of loans | 3 | |||
Mezzanine loan receivable | ||||
Real Estate Properties [Line Items] | ||||
Number of loans | 2 | |||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | ||||
Real Estate Properties [Line Items] | ||||
Number of facilities | facility | 221 | |||
Number of operational beds and units in facilities | bed | 23,135 |
Real Estate Investments, Net -
Real Estate Investments, Net - Real Estate Properties Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 236,298 | $ 251,787 |
Buildings and improvements | 1,437,292 | 1,622,019 |
Integral equipment, furniture and fixtures | 96,306 | 104,722 |
Identified intangible assets | 2,832 | 1,257 |
Real estate investments | 1,772,728 | 1,979,785 |
Accumulated depreciation and amortization | (388,562) | (389,814) |
Real estate investments, net | $ 1,384,166 | $ 1,589,971 |
Real Estate Investments, Net _2
Real Estate Investments, Net - Narrative (Details) | 9 Months Ended | ||||
Sep. 30, 2022 facility | Sep. 30, 2022 lease | Sep. 30, 2022 state | Jun. 30, 2022 lease | Mar. 31, 2022 facility | |
Real Estate [Line Items] | |||||
Number of facilities | 19 | 19 | |||
Held for sale | |||||
Real Estate [Line Items] | |||||
Number of facilities | 16 | 27 | |||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | |||||
Real Estate [Line Items] | |||||
Number of facilities | 221 | ||||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | Minimum | |||||
Real Estate [Line Items] | |||||
Term of rent commencement (months) | 12 months | ||||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | Maximum | |||||
Real Estate [Line Items] | |||||
Term of rent commencement (months) | 18 months | ||||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | Held for sale | |||||
Real Estate [Line Items] | |||||
Number of facilities | 19 | ||||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | Short-term lease | |||||
Real Estate [Line Items] | |||||
Number of facilities | 2 | ||||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | Triple-net leases | Rent Commencing 12 to 18 months | |||||
Real Estate [Line Items] | |||||
Number of facilities | lease | 2 | 2 | |||
Skilled nursing, multi-service campuses, assisted living and independent living facilities | Triple-net leases | Various other operators | |||||
Real Estate [Line Items] | |||||
Number of facilities | 217 |
Real Estate Investments, Net _3
Real Estate Investments, Net - Future Contractual Minimum Rental Income (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Future Contractual Minimum Rental Income | |
2022 (three months) | $ 48,193 |
2023 | 192,638 |
2024 | 192,396 |
2025 | 192,555 |
2026 | 192,661 |
2027 | 189,653 |
Thereafter | 1,001,323 |
Total | $ 2,009,419 |
Real Estate Investments, Net _4
Real Estate Investments, Net - Tenant Purchase Options (Details) $ in Thousands | Sep. 30, 2022 USD ($) property |
ALF | Lease Expiration October 2034, Next option 2023 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 5 |
Current Cash Rent | $ | $ 2,287 |
ALF | Lease Expiration October 2034, Next option 2026 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 2 |
Current Cash Rent | $ | $ 1,598 |
SNF | Lease Expiration November 2030, Next option 2023 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 11 |
Current Cash Rent | $ | $ 5,092 |
SNF | Lease Expiration March 2029, Next option 2022 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 1 |
Current Cash Rent | $ | $ 805 |
SNF | Lease Expiration November 2034, Next option 2024 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 4 |
Current Cash Rent | $ | $ 3,796 |
SNF / Campus | Lease Expiration October 2032, Next option 2023 | |
Lessor, Lease, Description [Line Items] | |
Properties | property | 2 |
Current Cash Rent | $ | $ 1,065 |
Real Estate Investments, Net _5
Real Estate Investments, Net - Rental Income (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) operator | Sep. 30, 2021 USD ($) | |
Rental Income | ||||
Contractual rent due | $ 47,015 | $ 48,081 | $ 140,794 | $ 140,988 |
Straight-line rent | 3 | 6 | 14 | 26 |
Adjustments for collectibility | 0 | 0 | (977) | 0 |
Lease termination revenue | 0 | 0 | 0 | 63 |
Total | 47,018 | 48,087 | 139,831 | 141,077 |
Tenant operating expense reimbursement | $ 700 | $ 1,000 | $ 2,000 | 2,500 |
Number of existing and former operators with doubtful collectability | operator | 4 | |||
Metron | ||||
Rental Income | ||||
Lease termination revenue | $ 100 | |||
Operating expense reimbursements | ||||
Rental Income | ||||
Adjustments for collectability, reversed | $ 700 | |||
Contractual rent | ||||
Rental Income | ||||
Adjustments for collectability, reversed | 200 | |||
Straight-line rent | ||||
Rental Income | ||||
Adjustments for collectability, reversed | $ 100 |
Real Estate Investments, Net _6
Real Estate Investments, Net - Recent Real Estate Acquisitions (Details) $ in Thousands | 9 Months Ended | |
Mar. 01, 2022 facility | Sep. 30, 2022 USD ($) unit_bed property | |
Business Acquisition [Line Items] | ||
Purchase Price | $ 21,921 | |
Initial Annual Cash Rent | $ 2,050 | |
Number of Properties | property | 2 | |
Number of Beds/Units | unit_bed | 265 | |
Skilled nursing | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 8,918 | |
Initial Annual Cash Rent | $ 815 | |
Number of Properties | property | 1 | |
Number of Beds/Units | unit_bed | 135 | |
Multi-service campuses | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 13,003 | |
Initial Annual Cash Rent | $ 1,235 | |
Number of Properties | 1 | 1 |
Number of Beds/Units | unit_bed | 130 |
Real Estate Investments, Net _7
Real Estate Investments, Net - Lease Amendments Narrative (Details) $ in Millions | 9 Months Ended | |||||
Aug. 29, 2022 USD ($) extension_option facility | Mar. 01, 2022 USD ($) facility extension_option | Feb. 01, 2022 USD ($) facility extension_option | Sep. 30, 2022 property | Jun. 16, 2022 USD ($) extension_option facility | Apr. 01, 2022 USD ($) extension_option state facility | |
Real Estate [Line Items] | ||||||
Number of properties acquired | property | 2 | |||||
Landmark Maryland | ||||||
Real Estate [Line Items] | ||||||
Annual cash rent decrease under amended lease | $ | $ 0.5 | |||||
Term of lease commencement (in months) | 18 months | |||||
Number of renewal options | extension_option | 1 | |||||
Lease renewal term (in years) | 10 years | |||||
Landmark Florida | ||||||
Real Estate [Line Items] | ||||||
Annual cash rent decrease under amended lease | $ | $ 0.6 | |||||
Number of renewal options | extension_option | 1 | |||||
Lease renewal term (in years) | 10 years | |||||
Ensign Amended Triple-net Master Lease Combined | ||||||
Real Estate [Line Items] | ||||||
Number of renewal options | extension_option | 3 | |||||
Lease renewal term (in years) | 5 years | |||||
Ensign amended triple-net master lease | ||||||
Real Estate [Line Items] | ||||||
Annual cash rent decrease under amended lease | $ | $ 0.8 | |||||
Number of renewal options | extension_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Initial lease term (in years) | 11 years | 5 years | ||||
Annual cash rent increase under amended lease | $ | $ 0.3 | $ 0.4 | ||||
Ensign amended triple-net master lease 2 | ||||||
Real Estate [Line Items] | ||||||
Initial lease term (in years) | 16 years | |||||
Eduro amended triple-net master lease | ||||||
Real Estate [Line Items] | ||||||
Number of renewal options | extension_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Initial lease term (in years) | 12 years | |||||
Annual cash rent increase under amended lease | $ | $ 0.8 | |||||
WLC amended triple-net master lease | ||||||
Real Estate [Line Items] | ||||||
Number of renewal options | extension_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Initial lease term (in years) | 12 years | |||||
Annual cash rent increase under amended lease | $ | $ 1.2 | |||||
Assisted living | ||||||
Real Estate [Line Items] | ||||||
Leases with terminated operations | facility | 1 | 1 | ||||
Skilled nursing facility | ||||||
Real Estate [Line Items] | ||||||
Number of properties acquired | facility | 1 | |||||
Multi-service campuses | ||||||
Real Estate [Line Items] | ||||||
Number of properties acquired | 1 | 1 | ||||
Ensign | Assisted living | ||||||
Real Estate [Line Items] | ||||||
Number of properties transferred | facility | 1 | 2 | ||||
Number of properties removed | state | 2 | |||||
Number of properties included | state | 2 | |||||
Ensign | Triple-net leases | ||||||
Real Estate [Line Items] | ||||||
Number of properties amended | state | 2 |
Impairment of Real Estate Inv_2
Impairment of Real Estate Investments, Assets Held for Sale, Net and Asset Sales (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 29, 2022 USD ($) bed facility | Feb. 22, 2022 USD ($) bed facility | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) state facility | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 facility | Sep. 30, 2022 state | Mar. 31, 2022 facility | Dec. 31, 2021 USD ($) | |
Real Estate [Line Items] | |||||||||||
Number of properties | 19 | 19 | |||||||||
Number of properties to be repurposed | facility | 3 | ||||||||||
Contractual cash rent attributable to properties held for sale and repurposed (percent) | 10% | ||||||||||
Assets held for sale, net | $ 77,708 | $ 77,708 | $ 4,835 | ||||||||
Real estate investment property, at cost | 1,772,728 | 1,772,728 | 1,979,785 | ||||||||
Real estate investments, net | 1,384,166 | 1,384,166 | $ 1,589,971 | ||||||||
Amount transferred out of assets held-for-sale | 4,800 | ||||||||||
Catch-up depreciation | 100 | ||||||||||
Proceeds from sale | 34,115 | $ 6,814 | |||||||||
Gain (loss) on sale of real estate | (2,287) | $ 0 | (2,101) | $ (192) | |||||||
Term loan | Term Loan with 3 Years Maturity Term | |||||||||||
Real Estate [Line Items] | |||||||||||
Debt instrument face amount | $ 7,000 | ||||||||||
Interest rate (percent) | 8.50% | ||||||||||
Term loan | Term Loan Maturity Date of November 29, 2022 | |||||||||||
Real Estate [Line Items] | |||||||||||
Debt instrument face amount | $ 5,000 | ||||||||||
Interest rate (percent) | 8.50% | ||||||||||
ALF | |||||||||||
Real Estate [Line Items] | |||||||||||
Amount transferred out of assets held-for-sale | 4,900 | ||||||||||
Valuation, market approach | Level 3 | Skilled nursing facility | |||||||||||
Real Estate [Line Items] | |||||||||||
Prices per unit input | $ 20 | ||||||||||
Valuation, market approach | Level 3 | ALF | |||||||||||
Real Estate [Line Items] | |||||||||||
Prices per unit input | 125 | 125 | |||||||||
Valuation, market approach | Level 3 | Minimum | |||||||||||
Real Estate [Line Items] | |||||||||||
Prices per unit input | 35 | 35 | |||||||||
Valuation, market approach | Level 3 | Maximum | |||||||||||
Real Estate [Line Items] | |||||||||||
Prices per unit input | 145 | 145 | |||||||||
Valuation, market approach | Level 3 | Weighted average | |||||||||||
Real Estate [Line Items] | |||||||||||
Prices per unit input | 80 | 80 | |||||||||
Held for sale | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | facility | 16 | 27 | |||||||||
Impairment expense to reduce carrying value to fair value less costs to sell | 12,300 | 59,700 | |||||||||
Number of properties impaired | facility | 20 | ||||||||||
Held for sale | Skilled nursing facility | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | state | 1 | ||||||||||
Impairment expense to reduce carrying value to fair value less costs to sell | $ 1,700 | ||||||||||
Real estate investment property, at cost | 2,800 | ||||||||||
Real estate investments, net | $ 1,100 | ||||||||||
Held for sale | ALF | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | facility | 1 | 1 | |||||||||
Held for sale | Trio Healthcare Holdings, LLC | Skilled nursing | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | facility | 6 | ||||||||||
Held for sale | Trio Healthcare Holdings, LLC | Multi-service campuses | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | facility | 1 | ||||||||||
Disposed of by sale | Skilled nursing facility | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | facility | 1 | ||||||||||
Real estate investment property, at cost | $ 800 | ||||||||||
Number of operational beds | bed | 83 | ||||||||||
Proceeds from sale | $ 1,000 | ||||||||||
Gain (loss) on sale of real estate | $ 200 | ||||||||||
Disposed of by sale | Trio Healthcare Holdings, LLC | |||||||||||
Real Estate [Line Items] | |||||||||||
Number of properties | facility | 7 | ||||||||||
Real estate investment property, at cost | $ 46,900 | ||||||||||
Number of operational beds | bed | 708 | ||||||||||
Proceeds from sale | $ 32,800 | ||||||||||
Gain (loss) on sale of real estate | $ 2,100 |
Other Real Estate Related Inv_3
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable - Other Real Estate Related Investments, At Fair Value (Details) | 9 Months Ended | |
Sep. 30, 2022 USD ($) facility | Dec. 31, 2021 USD ($) facility | |
Real Estate Properties [Line Items] | ||
Principal Amount | $ 162,150,000 | |
Book value | 158,662,000 | $ 15,155,000 |
Expected credit loss | 0 | |
Senior secured loan receivable | ||
Real Estate Properties [Line Items] | ||
Principal Amount | 75,000,000 | |
Book value | $ 72,525,000 | $ 0 |
Weighted Average Contractual Interest Rate | 8.40% | |
Senior secured loan receivable | Skilled nursing and campus facilities | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | facility | 18 | 18 |
Secured loan receivable | ||
Real Estate Properties [Line Items] | ||
Principal Amount | $ 22,250,000 | |
Book value | $ 22,423,000 | $ 0 |
Weighted Average Contractual Interest Rate | 9.60% | |
Secured loan receivable | SOFR | ||
Real Estate Properties [Line Items] | ||
Basis spread on variable rate (percent) | 3.02% | |
Secured loan receivable | Skilled nursing facility | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | facility | 5 | 5 |
Secured loan receivable | ||
Real Estate Properties [Line Items] | ||
Principal Amount | $ 24,900,000 | |
Book value | $ 25,043,000 | $ 0 |
Weighted Average Contractual Interest Rate | 9% | |
Secured loan receivable | Skilled nursing facility | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | facility | 4 | 4 |
Mezzanine loan receivable | ||
Real Estate Properties [Line Items] | ||
Principal Amount | $ 15,000,000 | |
Book value | $ 14,667,000 | $ 15,155,000 |
Weighted Average Contractual Interest Rate | 12% | |
Mezzanine loan receivable | Skilled nursing facility | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | facility | 9 | 9 |
Mezzanine loan receivable | ||
Real Estate Properties [Line Items] | ||
Principal Amount | $ 25,000,000 | |
Book value | $ 24,004,000 | $ 0 |
Weighted Average Contractual Interest Rate | 11% | |
Mezzanine loan receivable | Skilled nursing and campus facilities | ||
Real Estate Properties [Line Items] | ||
Facility Count and Type | facility | 18 | 18 |
Other | ||
Real Estate Properties [Line Items] | ||
Principal Amount | $ 14,738,000 | |
Book value | 14,742,000 | $ 3,161,000 |
Expected credit loss | (2,094,000) | 0 |
Principal amount after allowance for credit loss | 12,644,000 | |
Net increase in other real estate related investments, at fair value | $ 12,648,000 | $ 3,161,000 |
Weighted Average Contractual Interest Rate | 8.50% |
Other Real Estate Related Inv_4
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable - Other Real Estate Related Investment Activity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Origination of other real estate related investments | $ 162,150 | |
Other Real Estate Related Investments | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Origination of other real estate related investments | 147,150 | $ 0 |
Accrued interest, net | 1,063 | 150 |
Unrealized loss on other real estate related investments | (4,706) | 0 |
Net increase in other real estate related investments, at fair value | $ 143,507 | $ 150 |
Other Real Estate Related Inv_5
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) facility extension_option | Aug. 31, 2022 USD ($) facility operator extension_option | Jun. 30, 2022 USD ($) facility | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 162,150,000 | $ 162,150,000 | $ 162,150,000 | |||||
Number operated by existing operator | operator | 4 | |||||||
Number operated by large, regional operator | operator | 1 | |||||||
Expected credit loss | 0 | $ 0 | 3,844,000 | $ 0 | ||||
Expected credit loss | $ 0 | |||||||
Skilled nursing facility | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities acquired | facility | 4 | |||||||
Skilled nursing facility | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities acquired | facility | 18 | |||||||
Secured Loan Receivable | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 24,900,000 | $ 22,300,000 | 24,900,000 | 24,900,000 | ||||
Number of extension option | extension_option | 2 | 2 | ||||||
Extension option, term (year) | 1 year | 1 year | ||||||
Earnout advance | $ 4,700,000 | $ 4,700,000 | $ 4,700,000 | |||||
Subservicing fee percentage | 100% | 50% | 100% | 100% | ||||
Secured Loan Receivable | SOFR | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Monthly payment interest rate | 4.50% | 4.25% | ||||||
Secured Loan Receivable | SOFR Floor | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Floor rate | 1% | 1% | ||||||
Secured Loan Receivable | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 75,000,000 | |||||||
Loan receivable interest rate | 8.50% | |||||||
Servicing fee threshold | 8.25% | |||||||
Effective rate | 8.375% | |||||||
Secured Loan Receivable | Minimum | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 1% | 2% | 1% | 1% | ||||
Subservicing fee percentage | 9% | 8.25% | 9% | 9% | ||||
Secured Loan Receivable | Minimum | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 1% | |||||||
Secured Loan Receivable | Maximum | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 3% | 3% | 3% | 3% | ||||
Secured Loan Receivable | Maximum | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 3% | |||||||
Secured Loan Receivable | Weighted average | SOFR | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Monthly payment interest rate | 2.85% | 2.75% | ||||||
Mezzanine loan receivable | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | |||||
Mezzanine loan receivable | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | $ 25,000,000 | |||||||
Loan receivable interest rate | 11% | |||||||
Mezzanine loan receivable | Minimum | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 1% | |||||||
Mezzanine loan receivable | Maximum | Next WV Realty, LLC | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Early termination fee | 3% | |||||||
Other | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Principal amount | 14,738,000 | $ 14,738,000 | 14,738,000 | |||||
Expected credit loss | $ 4,600,000 | |||||||
Number of loans receivable with provision | loan | 1 | 2 | ||||||
Write-off | $ 2,500,000 | |||||||
Loan loss recovery | $ 800,000 | |||||||
Expected credit loss | $ 2,094,000 | $ 2,094,000 | $ 2,094,000 | $ 0 | ||||
B Tranche Mortgage Loan | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Number of facilities acquired by borrower | facility | 5 |
Other Real Estate Related Inv_6
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable - Loan Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | ||
Origination of loans receivable | $ 14,500 | $ 700 |
Principal payments | (416) | (172) |
Accrued interest, net | (3) | 39 |
Expected credit loss | (5,344) | 0 |
Loan loss recovery | 750 | 0 |
Net increase in other loans receivable | $ 9,487 | $ 567 |
Other Real Estate Related Inv_7
Other Real Estate Related Investments, At Fair Value, And Other Loans Receivable - Interest and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Real Estate Properties [Line Items] | ||||
Interest and other income | $ 3,275 | $ 518 | $ 4,491 | $ 1,537 |
Secured Loan Receivable | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | 2,098 | 0 | 2,115 | 0 |
Mezzanine loan receivable | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | 1,163 | 460 | 2,326 | 1,365 |
Other | ||||
Real Estate Properties [Line Items] | ||||
Interest and other income | $ 14 | $ 58 | $ 50 | $ 172 |
Fair Value Measurements - Items
Fair Value Measurements - Items Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Senior Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | $ 158,662 | |
Recurring | Secured Loan Receivable | ||
Assets: | ||
Loan receivable | 119,991 | |
Recurring | Mezzanine loan receivable | ||
Assets: | ||
Loan receivable | 38,671 | $ 15,155 |
Recurring | Level 1 | Senior Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | 0 | |
Recurring | Level 1 | Secured Loan Receivable | ||
Assets: | ||
Loan receivable | 0 | |
Recurring | Level 1 | Mezzanine loan receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 2 | Senior Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | 0 | |
Recurring | Level 2 | Secured Loan Receivable | ||
Assets: | ||
Loan receivable | 0 | |
Recurring | Level 2 | Mezzanine loan receivable | ||
Assets: | ||
Loan receivable | 0 | 0 |
Recurring | Level 3 | Senior Secured and Mezzanine Loans Receivable | ||
Assets: | ||
Loan receivable | 158,662 | |
Recurring | Level 3 | Secured Loan Receivable | ||
Assets: | ||
Loan receivable | 119,991 | |
Recurring | Level 3 | Mezzanine loan receivable | ||
Assets: | ||
Loan receivable | $ 38,671 | $ 15,155 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Measured Using Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Unrealized loss on other real estate related investments | $ 4,706 | $ 0 | $ 4,706 | $ 0 |
Investments in Real Estate Secured Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at December 31, 2021 | 0 | |||
Loan originations | 122,150 | |||
Accrued interest, net | 839 | |||
Unrealized loss on other real estate related investments | (2,998) | |||
Balance as of September 30, 2022 | 119,991 | 119,991 | ||
Investments in Mezzanine Loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at December 31, 2021 | 15,155 | |||
Loan originations | 25,000 | |||
Accrued interest, net | 224 | |||
Unrealized loss on other real estate related investments | (1,708) | |||
Balance as of September 30, 2022 | $ 38,671 | $ 38,671 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | |||||
Unrealized loss on other real estate related investments | $ (4,706,000) | $ 0 | $ (4,706,000) | $ 0 | |
Mortgage loan receivable | 158,662,000 | 158,662,000 | $ 15,155,000 | ||
Secured And Mezzanine Loans Receivable | |||||
Financing Receivable, Past Due [Line Items] | |||||
Unrealized loss on other real estate related investments | (4,700,000) | ||||
Greater than 90 days past due | |||||
Financing Receivable, Past Due [Line Items] | |||||
Mortgage loan receivable | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Unobservable Inputs Related To Level 3 Fair Value Measurements (Details) - Level 3 - Measurement Input, Discount Rate - Valuation Technique, Discounted Cash Flow $ in Thousands | Sep. 30, 2022 USD ($) |
Secured Loan Receivable | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, book value | $ 119,991 |
Secured Loan Receivable | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.09 |
Secured Loan Receivable | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.13 |
Mezzanine loan receivable | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, book value | $ 38,671 |
Mezzanine loan receivable | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.12 |
Mezzanine loan receivable | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, measurement input | 0.14 |
Fair Value Measurements - Face
Fair Value Measurements - Face Value, Carrying Amount and Fair Value of Financial Instruments (Details) - Level 2 - Senior unsecured notes payable - Senior unsecured notes payable - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial liabilities: | ||
Face Value | $ 400,000 | $ 400,000 |
Carrying Amount | ||
Financial liabilities: | ||
Notes payable, fair value disclosure | 394,928 | 394,262 |
Fair Value | ||
Financial liabilities: | ||
Notes payable, fair value disclosure | $ 331,000 | $ 410,500 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 780,000 | $ 680,000 |
Deferred Loan Fees | (5,777) | (6,602) |
Carrying Value | 774,223 | 673,398 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Principal Amount | 180,000 | 80,000 |
Deferred Loan Fees | 0 | 0 |
Carrying Value | 180,000 | 80,000 |
Notes payable | Senior unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Principal Amount | 400,000 | 400,000 |
Deferred Loan Fees | (5,072) | (5,738) |
Carrying Value | 394,928 | 394,262 |
Term loan | Senior unsecured term loan | ||
Debt Instrument [Line Items] | ||
Principal Amount | 200,000 | 200,000 |
Deferred Loan Fees | (705) | (864) |
Carrying Value | $ 199,295 | $ 199,136 |
Debt - Senior Unsecured Notes P
Debt - Senior Unsecured Notes Payable Narrative (Details) - USD ($) | 9 Months Ended | ||
Jun. 17, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Gross proceeds from issuance | $ 0 | $ 400,000,000 | |
Notes payable | 2028 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 400,000,000 | ||
Interest rate (percent) | 3.875% | ||
Gross proceeds from issuance | $ 400,000,000 | ||
Net proceeds from issuance | $ 393,800,000 | ||
Redemption price, percentage upon change of control (percent) | 101% | ||
Notes payable | 2028 Senior Notes | Period prior to March 30 2028 | |||
Debt Instrument [Line Items] | |||
Redemption price of notes (percent) | 100% | ||
Notes payable | 2028 Senior Notes | Period after March 30 2028 | |||
Debt Instrument [Line Items] | |||
Redemption price of notes (percent) | 100% | ||
Notes payable | 2028 Senior Notes | Period prior to June 30 2024 | |||
Debt Instrument [Line Items] | |||
Redemption price of notes (percent) | 103.875% | ||
Percentage of principal amount (percent) | 40% |
Debt - Unsecured Revolving Cred
Debt - Unsecured Revolving Credit Facility and Term Loan Narrative (Details) | Feb. 08, 2019 USD ($) extension_option | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Line of Credit Facility [Line Items] | |||
Outstanding amounts | $ 780,000,000 | $ 680,000,000 | |
Borrowings outstanding | 180,000,000 | 80,000,000 | |
Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Credit facility borrowing capacity | $ 600,000,000 | ||
Outstanding amounts | 180,000,000 | 80,000,000 | |
Borrowings outstanding | 180,000,000 | ||
Number of extension options | extension_option | 2 | ||
Extension option term (in months) | 6 months | ||
Revolving credit facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Facility fee on revolving commitment fees (percent) | 0.15% | ||
Facility fee on revolving commitment fee based on investment grade ratings (percent) | 0.125% | ||
Revolving credit facility | Minimum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 0.10% | ||
Revolving credit facility | Minimum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 1.10% | ||
Revolving credit facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Facility fee on revolving commitment fees (percent) | 0.35% | ||
Facility fee on revolving commitment fee based on investment grade ratings (percent) | 0.30% | ||
Revolving credit facility | Maximum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 0.55% | ||
Revolving credit facility | Maximum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 1.55% | ||
Letter of credit | |||
Line of Credit Facility [Line Items] | |||
Subfacility capacity as percentage of available revolving commitments (percent) | 10% | ||
Swingline loan | |||
Line of Credit Facility [Line Items] | |||
Subfacility capacity as percentage of available revolving commitments (percent) | 10% | ||
Term loan | Senior unsecured term loan | |||
Line of Credit Facility [Line Items] | |||
Debt instrument face amount | $ 200,000,000 | ||
Outstanding amounts | $ 200,000,000 | $ 200,000,000 | |
Term loan | Senior unsecured term loan | Minimum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 0.50% | ||
Term loan | Senior unsecured term loan | Minimum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 1.50% | ||
Term loan | Senior unsecured term loan | Maximum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 1.20% | ||
Term loan | Senior unsecured term loan | Maximum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percent) | 2.20% |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 20, 2020 | Mar. 10, 2020 | |
Class of Stock [Line Items] | |||||||
Share repurchase program authorization | $ 150,000,000 | ||||||
Shares repurchased (in shares) | 0 | ||||||
Remaining available authorization | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | ||||
ATM Program | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock, net, (in shares) | 0 | 0 | 0 | 990,000 | |||
Remaining offering amount available | $ 476,500,000 | $ 476,500,000 | $ 476,500,000 | ||||
ATM Program | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Authorized aggregate offering price of common stock | $ 500,000,000 |
Equity - At-The-Market Offering
Equity - At-The-Market Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Class of Stock [Line Items] | ||||
Gross proceeds | $ 0 | $ 22,946 | ||
ATM Program | ||||
Class of Stock [Line Items] | ||||
Number of shares | 0 | 0 | 0 | 990,000 |
Average sales price per share (in usd per share) | $ 23.74 | |||
Gross proceeds | $ 23,505 | |||
Commissions paid on stock issuance | $ 300 |
Equity - Dividends on Common St
Equity - Dividends on Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Dividends on common stock | ||||||
Dividends declared per share | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.265 | $ 0.265 | $ 0.265 |
Dividends payment date | Oct. 14, 2022 | Jul. 15, 2022 | Apr. 15, 2022 | |||
Dividends payable as of record date | $ 26,683 | $ 26,683 | $ 26,691 | |||
Dividends record date | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for awards | shares | 5,000,000 |
Unamortized stock-based compensation expense | $ | $ 7.6 |
RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Performance Stock Awards | Minimum | Vesting Period Range One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 1 year |
Performance Stock Awards | Minimum | Vesting Period Range Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 1 year |
Performance Stock Awards | Maximum | Vesting Period Range One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Performance Stock Awards | Maximum | Vesting Period Range Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 4 years |
RSAs and PSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average remaining vesting period (in years) | 1 year 7 months 6 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Performance Awards Activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 891,333 |
Vested (in shares) | shares | (501,479) |
Forfeited (in shares) | shares | (1,900) |
Unvested, ending balance (in shares) | shares | 423,630 |
Weighted Average Share Price | |
Unvested, beginning balance (in usd per share) | $ / shares | $ 20.91 |
Vested (in usd per share) | $ / shares | 20.60 |
Forfeited (in usd per share) | $ / shares | 21.50 |
Unvested, ending balance (in usd per share) | $ / shares | $ 20.96 |
RSAs | |
Shares | |
Granted (in shares) | shares | 9,684 |
Weighted Average Share Price | |
Granted (in usd per share) | $ / shares | $ 17.56 |
Board Awards | |
Shares | |
Granted (in shares) | shares | 25,992 |
Weighted Average Share Price | |
Granted (in usd per share) | $ / shares | $ 16.93 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 1,380 | $ 1,802 | $ 4,295 | $ 5,197 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||||||
Net income (loss) | $ 709 | $ 20,669 | $ (43,264) | $ 11,918 | $ 21,317 | $ 20,486 | $ (21,886) | $ 53,721 |
Less: Net income allocated to participating securities | (94) | (116) | (305) | (350) | ||||
Numerator for basic earnings available to common stockholders | 615 | 11,802 | (22,191) | 53,371 | ||||
Numerator for diluted earnings available to common stockholders | $ 615 | $ 11,802 | $ (22,191) | $ 53,371 | ||||
Denominator: | ||||||||
Weighted-average basic common shares outstanding (in shares) | 96,605 | 96,297 | 96,527 | 95,922 | ||||
Dilutive performance stock awards (in shares) | 20 | 0 | 0 | 15 | ||||
Weighted-average diluted common shares outstanding (in shares) | 96,625 | 96,297 | 96,527 | 95,937 | ||||
Earnings (loss) per common share, basic (in usd per share) | $ 0.01 | $ 0.12 | $ (0.23) | $ 0.56 | ||||
Earnings (loss) per common share, diluted (in usd per share) | $ 0.01 | $ 0.12 | $ (0.23) | $ 0.56 | ||||
Antidilutive unvested RSAs, PSAs and TSR Awards excluded from the computation (in shares) | 341 | 535 | 478 | 436 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Certain capital improvements at triple-net leased facilities | |
Other Commitments [Line Items] | |
Funding commitment | $ 16.1 |
Portion of funding commitment subject to rent increase at time of funding | $ 3.9 |
Ensign and Pennant | |
Other Commitments [Line Items] | |
Aggregate required financing of capital expenditures as percentage of initial investment in property (percent) | 20% |
Concentration of Risk (Details)
Concentration of Risk (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 facility bed unit_bed | Sep. 30, 2021 bed facility | Sep. 30, 2022 facility bed unit_bed | Sep. 30, 2021 bed facility | |
CA | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 27 | 27 | ||
Number of Beds/Units | unit_bed | 3,048 | 3,048 | ||
CA | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 8 | 8 | ||
Number of Beds/Units | unit_bed | 1,359 | 1,359 | ||
CA | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 5 | 5 | ||
Number of Beds/Units | unit_bed | 437 | 437 | ||
CA | Rental revenue | Geographic concentration risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 27% | 27% | ||
TX | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 38 | 38 | ||
Number of Beds/Units | unit_bed | 4,849 | 4,849 | ||
TX | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 3 | 3 | ||
Number of Beds/Units | unit_bed | 536 | 536 | ||
TX | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 3 | 3 | ||
Number of Beds/Units | unit_bed | 242 | 242 | ||
TX | Rental revenue | Geographic concentration risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 22% | 22% | ||
Ensign | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 83 | 83 | 83 | 83 |
Number of Beds/Units | bed | 8,741 | 8,756 | 8,741 | 8,756 |
Ensign | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 8 | 8 | 8 | 8 |
Number of Beds/Units | bed | 997 | 997 | 997 | 997 |
Ensign | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 7 | 4 | 7 | 4 |
Number of Beds/Units | bed | 661 | 395 | 661 | 395 |
Ensign | Rental revenue | Customer concentration risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 36% | 33% | 35% | 32% |
Priority Management Group | SNF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 13 | 13 | 13 | 13 |
Number of Beds/Units | bed | 1,742 | 1,742 | 1,742 | 1,742 |
Priority Management Group | Campus | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 2 | 2 | 2 | 2 |
Number of Beds/Units | bed | 402 | 402 | 402 | 402 |
Priority Management Group | ALF/ILF | ||||
Concentration Risk [Line Items] | ||||
Number of Facilities | 0 | 0 | 0 | 0 |
Number of Beds/Units | bed | 0 | 0 | 0 | 0 |
Priority Management Group | Rental revenue | Customer concentration risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Revenue | 16% | 15% | 16% | 15% |