MedEquities Realty Trust 10-K 27 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Feb. 22, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	MRT
Entity Registrant Name	MEDEQUITIES REALTY TRUST, INC.
Entity Central Index Key	1,616,314
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		31,790,607
Entity Public Float			$ 0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Real estate properties
Land	$ 39,584	$ 40,081
Building and improvements	440,927	458,930
Intangible lease assets	11,387	3,441
Furniture, fixtures, and equipment	2,976	2,401
Less accumulated depreciation and amortization	(26,052)	(11,172)
Total real estate properties, net	468,822	493,681
Mortgage notes receivable, net	9,915	9,909
Cash and cash equivalents	9,509	12,474
Other assets, net	31,507	27,603
Total Assets	519,753	543,667
Liabilities
Debt	144,000	247,400
Accounts payable and accrued liabilities	15,244	21,102
Deferred revenue	2,251	3,920
Total liabilities	161,495	272,422
Commitments and contingencies
Equity
Preferred stock, $0.01 par value. Authorized 50,000 shares; 0 and 125 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively		1
Common stock, $0.01 par value. Authorized 400,000 shares; 31,757 and 11,233 issued and outstanding at December 31, 2016 and December 31, 2015, respectively	314	109
Additional paid in capital	372,615	273,740
Dividends declared	(40,951)	(19,876)
Retained earnings	23,774	12,724
Total MedEquities Realty Trust, Inc. stockholders' equity	355,752	266,698
Noncontrolling interest	2,506	4,547
Total equity	358,258	271,245
Total Liabilities and Equity	$ 519,753	$ 543,667

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	125,000
Preferred stock, shares outstanding	0	125,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	31,757,000	11,233,000
Common stock, shares outstanding	31,757,000	11,233,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Revenues
Rental income	$ 4,316	$ 48,330	$ 41,484
Total revenues	5,447	49,296	44,438
Expenses
Depreciation and amortization	1,273	14,323	9,969
Property related	308	1,303	1,205
Acquisition costs	192	488	417
Start-up costs	888
Franchise, excise and other taxes	72	366	338
Bad debt expense		216
General and administrative	2,391	10,596	8,628
Total operating expenses	5,124	27,292	20,557
Operating income	323	22,004	23,881
Other income (expense)
Interest and other income	17	195	12
Interest expense	(317)	(10,883)	(7,163)
Other income (expense)	(300)	(10,688)	(7,151)
Net income	23	11,316	16,730
Less: Preferred stock dividends		(13,760)	(7,835)
Less: Net income attributable to noncontrolling interest		(266)	(4,029)
Net income (loss) attributable to common stockholders	$ 23	$ (2,710)	$ 4,866
Net income (loss) attributable to common stockholders per share
Basic and diluted	$ 0	$ (0.18)	$ 0.42
Weighted average shares outstanding
Basic and diluted	10,918	15,838	10,948
Dividends declared per common share	$ 0.20	$ 0.63	$ 0.85
Mortgage Notes Receivable
Revenues
Interest income	$ 1,078	$ 921	$ 2,717
Notes Receivable
Revenues
Interest income	$ 53	$ 45	$ 237

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Series B Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Dividends Declared	Non-Controlling Interest
Balance at Apr. 23, 2014	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Balance (in shares) at Apr. 23, 2014		0	0
Issuance of stock, net of costs	151,658		$ 109	151,549
Issuance of stock, net of costs (in shares)			11,076
Redemption of stock	(1)			(1)
Redemption of stock (in shares)			(1)
Stock-based compensation	443			443
Net income (loss)	23				23
Dividends to common stockholders	(2,246)					(2,246)
Balance at Dec. 31, 2014	149,877		$ 109	151,991	23	(2,246)
Balance (in shares) at Dec. 31, 2014			11,075
Issuance of stock, net of costs	119,955	$ 1		119,954
Issuance of stock, net of costs (in shares)		125	158
Investment in subsidiary by noncontrolling interest	1,000						1,000
Distributions to noncontrolling interest	(482)						(482)
Stock-based compensation	1,795			1,795
Net income (loss)	16,730				12,701		4,029
Dividends to preferred stockholders	(7,835)					(7,835)
Dividends to common stockholders	(9,795)					(9,795)
Balance at Dec. 31, 2015	271,245	$ 1	$ 109	273,740	12,724	(19,876)	4,547
Balance (in shares) at Dec. 31, 2015		125	11,233
Grants of restricted stock (in shares)			89
Issuance of stock, net of costs	221,649		$ 205	221,444
Issuance of stock, net of costs (in shares)			20,435
Redemption of stock	(125,125)	$ (1)		(125,124)
Redemption of stock (in shares)		(125)
Distributions to noncontrolling interest	(2,307)						(2,307)
Stock-based compensation	2,555			2,555
Net income (loss)	11,316				11,050		266
Dividends to preferred stockholders	(13,760)					(13,760)
Dividends to common stockholders	(7,315)					(7,315)
Balance at Dec. 31, 2016	$ 358,258		$ 314	$ 372,615	$ 23,774	$ (40,951)	$ 2,506
Balance (in shares) at Dec. 31, 2016			31,757

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net income (loss)	$ 23	$ 11,316	$ 16,730
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	1,448	17,921	11,871
Stock-based compensation	443	2,555	1,795
Straight-line rent receivable	(394)	3,447	(9,523)
Straight-line rent liability	47	165	171
Provision for bad debt		216
Write-off of pre-acquisitions costs		252
Write-off of pre-offering costs		89
Changes in operating assets and liabilities
Other assets	(1,997)	(13,055)	(5,222)
Accounts payable and accrued liabilities	1,069	9,062	4,117
Deferred revenues	952	(1,632)	2,968
Net cash provided by operating activities	1,591	30,336	22,907
Investing activities
Acquisitions of real estate	(108,423)	(72)	(317,872)
Funding of mortgage notes receivable, net	(77,720)
Funding of note receivable	(2,481)	(1,662)	(500)
Repayments of notes receivable		1,712
Capitalized pre-acquisition costs, net	(592)	(306)	(749)
Capital expenditures	(47)	(12)	(291)
Net cash used in investing activities	(189,263)	(340)	(319,412)
Financing activities
Proceeds from sale of common shares, net of offering costs	151,657	224,320
Redemption of preferred shares		(125,125)
Net borrowings (repayments) on secured credit facility	50,000	(103,400)	197,400
Dividends paid to preferred stockholders		(14,588)	(7,007)
Dividends paid to common stockholders	(885)	(10,459)	(7,483)
Distributions to noncontrolling interest		(2,307)	(482)
Deferred credit facility fees	(2,381)	(1,402)	(2,406)
Proceeds from sale of preferred shares, net of offering costs			119,955
Contributions by noncontrolling interest			1,000
Capitalized pre-offering costs	(226)		(2,491)
Net cash (used in) provided by financing activities	198,165	(32,961)	298,486
Decrease in cash and cash equivalents	10,493	(2,965)	1,981
Cash and cash equivalents, beginning of period		12,474	10,493
Cash and cash equivalents, end of period	10,493	9,509	12,474
Supplemental Cash Flow Information
Interest paid	135	8,417	5,079
Texas gross margins taxes paid, net of reimbursement		69	7
Accrued initial public offering costs		23
Accrued pre-acquisition costs	1,658	21	131
Accrued deferred credit facility fees	3	8
Accrued capital expenditures		$ 2
Accrued pre-offering costs	$ 1,225		942
Lakeway mortgage note receivable foreclosure			50,000
Amarillo mortgage note conversion			$ 18,000

Organization and Nature of Busi

Organization and Nature of Business	12 Months Ended
	Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Nature of Business	Note 1 - Organization and Nature of Business MedEquities Realty Trust, Inc. (the “Company”), which was incorporated in the state of Maryland on April 23, 2014, is a self-managed and self-administered company that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. As of December 31, 2016, the Company had investments of $478.8 million, net in 24 real estate properties and one mortgage note receivable. The Company owns 100% of all of its properties and investments, other than its investment in an acute care hospital in Lakeway, Texas (“Lakeway Hospital”), in which the Company owns a 51% interest through a consolidated partnership (the “Lakeway Partnership”). On October 4, 2016, the Company completed the initial public offering (the “IPO”) of its common stock in which the Company issued 19,000,000 shares and on October 28, 2016, issued an additional 1,434,567 shares upon the underwriters’ partial exercise of their over-allotment option. The public offering price of the shares sold in the IPO was $12.00 per share, resulting in aggregate net proceeds to the Company of approximately $221.6 million, after deducting the underwriting discount and commissions and offering expenses payable by the Company. These offering expenses include approximately $2.7 million of offering expenses that had been paid prior to 2016. The Company used approximately $131.4 million to redeem all of its outstanding preferred stock and approximately $94.8 million to repay amounts outstanding under its secured credit facility. The Company conducts its business through an umbrella partnership REIT (“UPREIT”) structure, consisting of the Company’s operating partnership, MedEquities Realty Operating Partnership, LP (the “Operating Partnership”), and subsidiaries of the Operating Partnership, including the Company’s taxable REIT subsidiary (“TRS”), MedEquities Realty TRS, LLC. The Company’s wholly owned limited liability company, MedEquities OP GP, LLC, is the sole general partner of the Operating Partnership, and the Company presently owns all of the units of limited partnership interest in the Operating Partnership (“OP units”). In the future, the Company may issue OP units to third parties in connection with healthcare property acquisitions, as compensation or otherwise. As the sole owner of the general partner of the Operating Partnership, the Company has the exclusive power to manage and conduct the Operating Partnership’s business, subject to certain limitations. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal tax purposes. To maintain its qualification as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with U.S. generally accepted accounting principles (“GAAP”)). As a REIT, the Company will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to maintain our qualification as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Even if the Company qualifies for taxation as a REIT, the Company may be subject to state and local taxes on its income and property and federal income and excise taxes on its undistributed income. Taxable income from non-REIT activities managed through the Company’s TRS, if any, is subject to applicable U.S. federal, state and local income taxes. The Company has no activity in its TRS.

Accounting Policies and Related

Accounting Policies and Related Matters	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Accounting Policies and Related Matters	Note 2 - Accounting Policies and Related Matters Use of Estimates : The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the amounts of revenue and expense reported in the period. Significant estimates are made for the valuation of real estate and intangibles and fair value assessments with respect to purchase price allocations. Actual results may differ from those estimates. Reclassifications : Certain reclassifications have been made to the consolidated balance sheet as of December 31, 2015 to conform to the 2016 presentation. Principles of Consolidation : The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries and subsidiaries in which the Company has a controlling interest. All material intercompany transactions and balances have been eliminated in consolidation. There are no material differences between the Company and the Operating Partnership as of December 31, 2016. Noncontrolling Interest : The portion of equity not owned by the Company in entities controlled by the Company, and thus consolidated, is presented as noncontrolling interest and classified as a component of consolidated equity, separate from total stockholders’ equity on the Company’s consolidated balance sheets. The amount recorded will be based on the noncontrolling interest holder’s initial investment in the consolidated entity, adjusted to reflect the noncontrolling interest holder’s share of earnings or losses in the consolidated entity and any distributions received or additional contributions made by the noncontrolling interest holder. The earnings or losses from the entity attributable to noncontrolling interests are reflected in “net income attributable to noncontrolling interest” in the consolidated statements of operations. Segment Reporting : The Company owns, acquires, and finances healthcare-related properties. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making. Therefore, the Company discloses its operating results in a single reportable segment. Cash and Cash Equivalents : Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The majority of the Company’s cash and cash equivalents are held at major commercial banks which at times may exceed the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses to date on invested cash. Restricted Cash : Restricted cash consists of amounts funded by tenants and held by the Company for payment of costs and expenses associated with capital improvements, repairs and replacements to be performed at certain of the Company’s facilities. As of December 31, 2016 and December 31, 2015, the restricted cash balance was approximately $0.3 million and $0.1 million, respectively, and is included in Other Assets on the Company’s consolidated balance sheets. Revenue Recognition: Leases of Real Estate Properties At the inception of a new lease arrangement, including new leases that arise from amendments, the Company assesses the terms and conditions to determine the proper lease classification. Currently, all of the Company’s lease arrangements are classified as operating leases. Rental revenue for operating leases is recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of a leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. The determination of ownership of the tenant improvements is subject to significant judgment. If the Company’s assessment of the owner of the tenant improvements for accounting purposes were different, the timing and amount of revenue recognized would be impacted. The Company maintains an allowance for doubtful accounts, including an allowance for operating lease straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of tenants and operators on a continuous basis. This evaluation considers industry and economic conditions, property performance, credit enhancements and other factors. For straight-line rent amounts, the Company’s assessment is based on income recoverable over the term of the lease. The Company exercises judgment in establishing allowances and considers payment history and current credit status in developing these estimates. These estimates may differ from actual results, which could be material to the consolidated financial statements. At December 31, 2016 and December 31, 2015, the Company had no allowance for doubtful accounts. The Company’s leases are generally “triple-net” leases with terms requiring operating expenses associated with the Company’s facilities, such as taxes, insurance and utilities, to be paid directly by the Company’s tenants. Failure by a tenant to pay such expenses, or to pay late, would result in a violation of the lease agreement, which could lead to an event of default if not cured timely. Leases in the medical office building owned by the Company require tenants to make estimated payments to the Company to cover their proportional share of operating expenses, including, but not limited to, real estate taxes, property insurance, routine maintenance and repairs, utilities, and property management expenses. The Company collects these estimated expenses and is reimbursed by tenants for any actual expense in excess of estimates or reimburses tenants if collected estimates exceed actual operating results. The reimbursements are recorded in rental income as operating expense recoveries, and the expenses are recorded in property-related expenses, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the credit risk. For the years ended December 31, 2016 and December 31, 2015, the Company reported operating expense recoveries, primarily related to its one medical office building, totaling $0.9 million and $0.8 million, respectively, which is included in rental income on the consolidated statement of operations. For the period from April 23, 2014 to December 31, 2014, the Company reported operating expense recoveries totaling approximately $0.2 million. Revenue Recognition: Mortgage Notes and Other Receivables Mortgage notes receivable are classified as held-for-investment based on management’s intent and ability to hold the mortgage notes receivable for the foreseeable future or to maturity. The Company recognizes interest income on mortgage notes receivable, including the amortization of any discounts and premiums, using the interest method applied on a loan-by-loan basis when collectability of the future payments is reasonably assured. Premiums, discounts and related costs are recognized as yield adjustments over the term of the related loans. Mortgage notes receivable are placed on non-accrual status at such time as management determines that collectability of contractual amounts is not reasonably assured. While on non-accrual status, mortgage notes receivable are either accounted for on a cash basis, in which income is recognized only upon receipt of cash, or on a cost-recovery basis, where cash receipts reduce the carrying value of the loan, based on management’s judgment of collectability. No mortgage notes receivable are currently on non-accrual status. Allowances are established for loans based upon an estimate of probable losses on an individual basis if they are determined to be impaired. Loans are impaired when it is deemed probable that the Company will be unable to collect all amounts due on a timely basis in accordance with the contractual terms of the loan. The allowance is based upon management’s assessment of the borrower’s overall financial condition, resources and payment record; the prospects for support from any financially responsible guarantors; and, if appropriate, the net realizable value of any collateral. These estimates consider all available evidence including, as appropriate, the present value of the expected future cash flows discounted at the loan’s effective interest rate, the fair value of collateral, general economic conditions and trends, historical and industry loss experience, and other relevant factors. At December 31, 2016 and December 31, 2015, the Company had no allowance for loan losses. Commitment, origination and other fees from lending activities are recognized as interest income over the life of the loan. Allocation of Purchase Price of Acquired Real Estate : As part of the purchase price allocation process of acquisitions (whether an asset acquisition acquired via purchase/leaseback or a business combination via an asset acquired from the current lessor), management makes estimates based upon the relative fair values of each component for asset acquisitions and at a fair value of each component for business combinations. In making estimates of fair values for purposes of allocating purchase prices of acquired real estate, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. The Company also considers information obtained about each property as a result of the Company’s pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the assets acquired. The Company records above-market and below-market in-place lease values, if any, for its facilities, which are based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease, or, for below-market in-place leases, including any bargain renewal option terms. The Company amortizes any resulting capitalized above-market lease values as a reduction of rental income over the lease term. The Company amortizes any resulting capitalized below-market lease values as an increase to rental income over the lease term. As of December 31, 2016, the Company had one above-market in-place lease with a gross value of $7.6 million. The Company did not have any below-market in-place leases as of December 31, 2016. The Company amortizes the value of in-place leases to amortization expense over the initial term of the respective leases. If a lease is terminated, the unamortized portion of the in-place lease value is charged to amortization expense. Depreciation and amortization of real estate assets and liabilities is provided for on a straight-line basis over the assets estimated useful lives of the assets: Building 25 to 50 years Improvements 2 to 47 years Lease intangibles 2.7 to 15 years Furniture, fixtures, and equipment 5 to 14 years Asset Impairment: Real Estate Properties Real estate asset impairment losses are recorded when events or changes in circumstances indicate the asset is impaired and the estimated undiscounted cash flows to be generated by the asset are less than its carrying amount. Management assesses the impairment of properties individually and impairment losses are calculated as the excess of the carrying amount over the fair value of assets to be held and used, and carrying amount over the fair value less cost to sell in instances where management has determined that the Company will dispose of the property and the criteria are met for the property to be classified as held-for-sale. In determining the fair value, the Company uses current appraisals or other third party opinions of value and other estimates of fair value such as estimated discounted future cash flows. Asset Impairment: Mortgage Notes and Other Receivables The Company evaluates the carrying value of mortgage notes receivable on an individual basis. Management periodically evaluates the realizability of future cash flows from the mortgage note receivable when events or circumstances, such as non-receipt of principal and interest payments and/or significant deterioration of the financial condition of the borrower, indicate that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the mortgage note agreement. An impairment charge is recognized in current period earnings and is calculated as the difference between the carrying amount of the mortgage note receivable and the discounted cash flows expected to be received, or if foreclosure is probable, the fair value of the collateral securing the mortgage. Earnings Per Share : Basic earnings per common share is computed by dividing net income (loss) applicable to common shares by the weighted number of shares of common stock outstanding during the period. Diluted earnings per common share is calculated by including the effect of dilutive securities. Certain of the Company’s unvested restricted stock awards contain non-forfeitable rights to dividends, and accordingly, these awards are deemed to be participating securities. These participating securities are included in the earnings allocation in computing both basic and diluted earnings per common share. Income Taxes : Commencing with its short taxable year ended December 31, 2014, the Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). The Company intends at all times to maintain its qualification as a REIT under Sections 856 through 860 of the Code. The Company has elected that its subsidiary, MedEquities Realty TRS, LLC, be taxed as a TRS under provisions of the Code. A TRS is subject to federal and state income taxes like those applicable to regular corporations. Aside from such income taxes that may be applicable to the taxable income in the Company’s TRS, the Company will not be subject to federal income tax provided that the Company continues to maintain its qualification as a REIT and makes distributions to stockholders equal to or in excess of the Company’s taxable income. The Company’s federal tax returns for the short taxable year ended December 31, 2014 year and for the year ended December 31, 2015 are currently subject to examination by taxing authorities. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Company’s consolidated financial statements as a component of income tax expense. The Company has made no U.S. federal income tax payments. Stock-Based Compensation : The fair value of stock-based awards is calculated on the date of grant. The Company amortizes the stock-based compensation expense on a straight-line basis over the period that the awards are expected to vest, net of any forfeitures. Deferred Costs : Costs incurred prior to the completion of offerings of stock or other capital instruments that directly relate to the offering are deferred and netted against proceeds received from the offering. Fair Value Measurement : Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. In calculating fair value, a company must maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy: • Level 1 - quoted prices for identical instruments in active markets; • Level 2 - quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3 - fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. If quoted market prices or inputs are not available, fair value measurements are based upon valuation models that utilize current market or independently sourced market inputs, such as interest rates, option volatilities, credit spreads and market capitalization rates. Items valued using such internally-generated valuation techniques are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified in either Level 2 or 3 even though there may be some significant inputs that are readily observable. Valuation techniques used by the Company include the use of third-party valuations and internal valuations, which may include discounted cash flow and Monte Carlo valuation models. For the years ended December 31, 2016 and 2015 the Company has recorded all acquisitions and business combinations based on our estimated fair values. The fair values were obtained from third-party appraisals based on comparable properties (using the market approach, which involved Level 3 inputs in the fair value hierarchy). Accumulated Other Comprehensive Income (loss) : Certain items must be included in comprehensive income (loss), including items such as foreign currency translation adjustments, minimum pension liability adjustments, and unrealized gains or losses on available-for-sale securities. Through December 31, 2016, the Company had no items included in other comprehensive income (loss). Recent Accounting Developments : In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” a comprehensive new revenue recognition standard that supersedes most of the existing revenue recognition guidance. This standard’s core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company’s revenues, are not within the scope of the new standard and will continue to be accounted for under existing standards. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of this standard by one year. This standard is effective for public companies beginning after December 15, 2017 and interim periods therein for public companies. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company continues to evaluate this standard. However, the standard is not expected to have a significant impact on the Company’s consolidated financial position, results of operations and cash flows since the Company’s revenues consist primarily of rental income from leasing arrangements, which are specifically excluded from the guidance in ASU 2014-09. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which expands upon the guidance on the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance requires a retrospective application and is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30),” which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The Company adopted these standards on January 1, 2016, which did not have a significant impact on the Company’s consolidated financial position or results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer will be required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Entities will also be required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU were effective for fiscal years beginning January 1, 2016 and require the prospective application for adjustments to provisional amounts that occur after the effective date. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheet and making targeted improvements to lessor accounting. The guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance will be effective beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends the accounting for share-based payment transactions, including income tax effects, equity versus liability classification and classification on the statement of cash flows. The guidance is effective for annual and interim periods of public entities beginning January 1, 2017. Early adoption is permitted in any annual or interim period for which financial statements have not been issued or made available for issuance. The Company adopted this standard on January 1, 2017, which did not have a significant impact on the Company’s consolidated financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard also requires additional disclosures related to significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The amended guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2020 with early adoption permitted for the fiscal years, and interim periods within those fiscal years, beginning January 1, 2019. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows- Restricted Cash,” which required that a statement of cash flows explains the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2018. The adoption of this guidance will change the presentation of restricted cash on our statement of cash flows; however, it will have no impact on our results of operations, financial condition, or liquidity.

Investment Activity

Investment Activity	12 Months Ended
	Dec. 31, 2016
Investment Activity [Abstract]
Investment Activity	Note 3 – Investment Activity Lakeway Hospital Operator Change On September 1, 2016, Baylor Scott & White Health (“BSW Health”) acquired the operations of the Company’s former tenant (“LRMC”) at Lakeway Hospital. In connection with the closing of this transaction, the Company, through the Lakeway Partnership, simultaneously terminated the lease with LRMC and entered into a new triple-net lease with an existing BSW Health hospital entity (the “Baylor Lessee”), which has an initial term of 15 years with two ten-year extension options. The lease is unconditionally guaranteed by Baylor University Medical Center, which is a controlled affiliate of the nonprofit parent corporation Baylor Scott & White Holdings. The initial annual base rent is approximately $12.8 million, payable in equal monthly installments, which is the same as the annual base rent under the lease with LRMC. The base rent will increase by 1.75% on the second anniversary of the lease, 2.0% on the third anniversary and 2.5% on each anniversary thereafter. The lease provides that, commencing after completion of the third year of the lease and subject to certain conditions, the Baylor Lessee has the option to purchase Lakeway Hospital at a price equal to the aggregate base rent payable under the lease for the 12-month period following the date of the written notice from the Baylor Lessee divided by (i) 6.5% if written notice is provided after completion of the third lease year and before completion of the tenth lease year (which would result in a purchase price of not less than approximately $203.6 million) or (ii) 7.0% if written notice is provided any time thereafter. Pursuant to the lease, on September 30, 2016, the Company (through the Lakeway Partnership) paid the Baylor Lessee an approximately $2.3 million tenant allowance for the transition of the hospital, which is included in Other Assets on the consolidated balance sheet at December 31, 2016. Under the terms of the lease with LRMC, contractual base rent increased ratably during the first six months of 2016 by an aggregate of $3.5 million (representing the difference between the reduced monthly base rent of $0.5 million due for the second and third quarters of 2015 and the stabilized monthly rent of $1.1 million, plus interest on the deferred rent) (the “Deferred Payment”). As part of the lease termination agreement with LRMC, the Company agreed to receive $1.5 million in satisfaction of the $1.7 million in the Deferred Payment due as of March 31, 2016, resulting in bad debt expense of $0.2 million, which was recorded during the second quarter of 2016. The remaining $1.8 million of the Deferred Payment was not recognized. The Company also wrote off approximately $7.0 million of the straight-line rent receivable associated with the LRMC lease, which was recorded as a reduction to rental income on the Company’s consolidated statements of operations during the second quarter of 2016. The noncontrolling interest’s proportionate share of this amount was $3.6 million, which is reflected in the net income attributable to noncontrolling interest on the Company’s consolidated statement of operations for the year ended December 31, 2016. Adjustments to Purchase Price Allocations of 2015 Acquisitions The purchase price allocations for the Kearny Mesa skilled nursing facility and Vibra Rehabilitation Hospital of Amarillo acquisitions, both of which closed on October 1, 2015, were preliminary at December 31, 2015 since the valuations for both of the acquisitions were still in progress. The preliminary allocations for these properties were comprised of $4.6 million in land and $39.9 million in building and improvements. The purchase price allocations were updated during the first quarter of 2016, resulting in adjustments to the preliminary purchase price allocations to reflect the new information obtained about the facts and circumstances that existed as of the respective acquisition dates that, if known, would have affected the measurement of the amounts recognized as of those dates. Additionally, the purchase price allocation for Kearny Mesa was updated in the second quarter of 2016 for the elimination of the $10.0 million earn-out as discussed below. The revised allocations for these properties are as follows (dollars in thousands): Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Land $ 2,995 $ 991 $ 3,986 Buildings and improvements 11,760 10,235 21,995 Intangible lease assets — 7,946 7,946 Furniture, fixtures, and equipment 347 227 574 Total real estate properties acquired $ 15,102 $ 19,399 $ 34,501 The Kearny Mesa acquisition was accounted for as an asset acquisition and the Vibra Rehabilitation Hospital of Amarillo acquisition was accounted for as a business combination. The following table shows the impact of amounts recorded in the consolidated statement of operations for the year ended December 31, 2016 due to the change in the estimates of the purchase price allocations that would have been recorded in the consolidated statement of operations in prior periods had the adjustment to the provisional amounts been recognized as of the acquisition date (dollars in thousands). Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Rental income $ — $ (127 ) $ (127 ) Depreciation and amortization 26 (79 ) (53 ) Net income attributable to common stockholders $ (26 ) $ (48 ) $ (74 ) Adjustments to Kearny Mesa In the second quarter of 2016, the Company and Life Generations amended the purchase and sale agreement for Kearny Mesa to eliminate the $10.0 million earn-out provision. This amount was recorded in real estate properties and accounts payable and accrued liabilities on the Company’s consolidated balance sheet at December 31, 2015 and has been eliminated from the Company’s consolidated balance sheet at December 31, 2016. The Company recorded an approximately $0.2 million reduction of depreciation expense on the consolidated statements of operations for the year ended December 31, 2016 for depreciation expense recorded in prior periods associated with the earn-out provision. 2015 Real Estate Acquisitions A summary of the purchase price allocations for the Company’s real estate investment activity for the year ended December 31, 2015 is as follows (dollars in thousands). The purchase price allocations attributable to the Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo acquisitions were preliminary as of December 31, 2015 as the valuations for each of the acquisitions were still in progress. See “Adjustments to Purchase Price Allocations of 2015 Acquisitions” and “Adjustments to Kearny Mesa” above for further information regarding the adjustments made during the year ended December 31, 2016 related to these purchase price allocations. For the year ended December 31, 2015 Land $ 32,975 Building improvements 356,207 Intangible lease assets 103 Furniture, fixtures, and equipment 2,401 Total real estate 391,686 Foreclosed mortgage note receivable (50,000 ) Conversion of mortgage note receivable (18,000 ) Kearny Mesa earn-out (10,000 ) Total cash paid $ 313,686 During the year ended December 31, 2015, the Company completed the following real estate transactions: • On February 3, 2015, the Company acquired Lakeway Hospital, This transaction was accounted for as an asset acquisition and approximately $0.1 million of transaction costs were capitalized. In addition, in connection with the acquisition of Lakeway Hospital, the Company assumed the seller’s rights as lessor under the ground lease for the medical office building that is a part of Lakeway Hospital. The ground lease expires on October 1, 2061, subject to two ten-year extension options, and provides for annual base rent of approximately $0.2 million, which will increase each year by 3.0% of the prior year’s base rent. The Company owns Lakeway Hospital through a consolidated partnership. See Note 9 for further discussion. • On February 20, 2015, the Company acquired Mira Vista Court, a 142-bed skilled nursing facility located in Fort Worth, Texas, for an aggregate purchase price of $16.0 million. The property is 100% leased pursuant to a 12-year initial term triple-net lease that expires in February 2027. This transaction was accounted for as a business combination. • On March 31, 2015, the Company acquired a portfolio of four skilled nursing facilities and one assisted living facility (collectively, together with Kearny Mesa, the “Life Generations Portfolio”) that contains an aggregate of 429 licensed beds and approximately 154,199 square feet located in California for an aggregate purchase price of $80.0 million from Life Generations Healthcare (“Life Generations”), with the option to purchase Kearny Mesa, a 96-bed and approximately 26,950 square-foot skilled nursing facility located in San Diego, California, for $15.0 million plus an earn-out of up to $10.0 million. The Company completed the acquisition of Kearny Mesa on October 1, 2015 and during the second quarter of 2016, the Company and Life Generations amended the purchase and sale agreement to eliminate the $10.0 million earn-out (see further discussion in the “Adjustments to Kearny Mesa” • On March 31, 2015, the Company acquired Mountain’s Edge Hospital, a 72,140 square-foot acute care hospital located in Las Vegas, Nevada, for an aggregate gross purchase price of $35.4 million, which includes a tenant allowance included in Other Assets on the Company’s consolidated balance sheets of $6.0 million, gross ($5.3 million, net at December 31, 2016) that the Company has provided to the tenant for certain furniture, fixtures and equipment at the facility. This property is 100% leased pursuant to a 15-year initial term triple-net lease. This transaction was accounted for as an asset acquisition and less than $0.1 million of transaction costs were capitalized. • On July 30, 2015, the Company completed the acquisition of nine properties in a portfolio of ten skilled nursing facilities located throughout Texas that contained an aggregate 1,142 licensed beds and approximately 339,733 square feet. The aggregate gross purchase price for the nine facilities was $133.4 million. The tenth facility in this portfolio (collectively, the “Texas SNF Portfolio”), which is located in Graham, Texas and has 117 licensed beds and approximately 32,391 square feet, was acquired on October 2, 2015 for $11.6 million, resulting in an aggregate gross purchase price of $145.0 million for the Texas SNF Portfolio. The Company leases the facilities to wholly owned subsidiaries of GruenePointe Holdings, LLC (“GruenePointe”) pursuant to an absolute triple-net master lease with a non-cancelable 15-year term with two five-year extension options. This transaction was accounted for as an asset acquisition and approximately $0.1 million of transaction costs were capitalized. See further discussion regarding this acquisition under the “Texas SNF Portfolio Contingent Consideration and Additional Rent” • On October 1, 2015, the Company completed the acquisition of Vibra Rehabilitation Hospital of Amarillo, a 44-bed inpatient rehabilitation hospital located in Amarillo, Texas, for a purchase price of $19.4 million, pursuant to the exercise of its exclusive right to purchase the property contained in the Company’s $18.0 million mortgage note receivable. The purchase price was determined by dividing the facility’s trailing 12-month earnings before interest, taxes, depreciation, amortization and rent expense (“EBITDAR”) of the facility and a 1.5 times rent coverage at an initial lease rate of 8.75%, which was specified in the purchase option. The $18.0 million in principal outstanding on the mortgage note receivable was applied to the purchase price, resulting in an additional cash expenditure of approximately $1.4 million to acquire the property. Upon conversion of the mortgage note, the Company recognized the remaining origination fee on the mortgage note totaling $0.2 million as mortgage interest income. The facility is 100% leased pursuant to a triple-net lease to a wholly owned subsidiary of Vibra Healthcare with an initial 15-year term and three five-year extension options. This transaction was accounted for as a business combination. 2017 Mortgage Note Receivable Funding On January 30, 2017, the Company invested $12.5 million in an acute care surgical hospital in Houston, Texas in a newly originated interest-only loan at an interest rate of 9.6% and secured by a first mortgage on Advanced Diagnostics Hospital East, a licensed general acute care hospital that consists of 23,300 square feet with four operating rooms, two special procedure rooms, four inpatient rooms and four full-size extended recovery rooms. Texas SNF Portfolio Contingent Consideration and Additional Rent The aggregate gross purchase price for the Texas SNF Portfolio includes $12.0 million of refundable contingent consideration, $3.0 million of which will become fully earned and non-forfeitable on January 1 of each year through 2019, subject to the tenants’ compliance with certain financial covenants under the master lease agreement and other provisions in the purchase and sale agreement on such dates. If any of the refundable contingent consideration has not been earned by January 1, 2019, the tenants will have until January 1, 2020 to achieve compliance with all of the applicable financial covenants and earn such remaining refundable contingent consideration. If the tenants have not achieved such compliance by January 1, 2020, the seller must repay to the Company any refundable contingent consideration that has not been earned, together with interest, at a rate of 3.0% per annum, from the closing date of the acquisition to January 1, 2020. The annual rent will not decrease in the event that GruenePointe is required to repay any portion of the refundable contingent consideration. As of February 27, 2017, none of the $12.0 million of refundable contingent consideration had been earned. In addition to the base rent, commencing in the second year of the lease, the master lease provides for additional rent equal to 20% of the amount by which the aggregate gross patient care revenues (i.e., gross revenues less supplemental management fees) of four of the facilities – located in the cities of Brownwood, Graham, San Antonio, and Kerens, Texas with an aggregate 412 licensed beds – exceed the aggregate gross patient care revenues of such facilities in the first year of the master lease, until the aggregate rent under the master lease for these four facilities equals 10.0% of the portion of the $145.0 million gross purchase price allocated to these facilities, subject to increases pursuant to the annual rent escalator. As of the date the consolidated financial statements were available to be issued, no additional rent had been earned. Leasing Operations The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2031. Leases for the Company’s portfolio, including single-tenant properties, generally require the lessee to pay minimum rent (which generally increases annually on a fixed percentage basis or based on increases in the consumer price index), all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. Minimum cash rental payments due to the Company in future periods under operating leases for the Company’s properties that have non-cancelable terms as of December 31, 2016 are as follows (dollars in thousands): For the year ending December 31: 2017 $ 50,577 2018 49,741 2019 50,241 2020 50,972 2021 51,773 Thereafter 509,139 Total $ 762,443 Concentrations of Credit Risks The following table contains information regarding tenant concentration in the Company’s portfolio, based on the percentage of revenues (rental income and interest on mortgage notes receivable for the years ended December 31, 2016 and 2015, and the period from April 23, 2014 (inception) to December 31, 2014, related to tenants, or affiliated tenants, that exceed 10% of revenues. % of Revenue for the year ended December 31, 2016 2015 2014 GruenePointe Holdings 28.9% 13.0% - Life Generations Healthcare 17.5% 13.1% - Fundamental Healthcare 16.7% 16.4% 28.4% Vibra Healthcare 15.5% 18.2% 60.4% LRMC (2) (1) 34.2% - (1) Total revenue is less than 10%. (2) LRMC was the prior tenant at Lakeway Hospital, in which the Company owns a 51% interest through the Lakeway Partnership. The lease with LRMC was terminated on September 1, 2016. See “Lakeway Hospital Operator Change” above for further discussion. The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of December 31, 2016 and 2015, which includes percentage of rental income for the years ended December 31, 2016 and 2015 (dollars in thousands). Number of properties at December 31, Gross Investment at December 31, % of Total Real Estate Property investments at December 31, % of Rental Income State 2016 2015 2016 2015 2016 2015 For the year ended December 31, 2016 For the year ended December 31, 2015 Texas 14 14 $ 270,725 $ 270,723 54.7% 53.6% 57.6% 59.3% California 7 7 154,727 164,708 31.3% 32.6% 28.7% 26.5% Nevada 2 2 49,422 49,422 10.0% 9.8% 9.7% 9.5% South Carolina 1 1 20,000 20,000 4.0% 4.0% 4.0% 4.7% 24 24 $ 494,874 $ 504,853 100.0% 100.0% 100.0% 100.0%

Real Estate Intangibles

Real Estate Intangibles	12 Months Ended
	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Real Estate Intangibles	Note 4 - Real Estate Intangibles The following is a summary of the carrying amount of real estate intangible assets (dollars in thousands): December 31, 2016 December 31, 2015 Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Life (Years) as of December 31, 2016 Above-market lease intangible $ 7,636 $ (637 ) $ 6,999 $ - $ - $ - 13.8 In-place leases 2,406 (932 ) 1,474 2,096 (512 ) 1,584 9.4 Leasing commissions 1,294 (397 ) 897 1,294 (228 ) 1,066 10.1 Legal/marketing fees 51 (20 ) 31 51 (11 ) 40 9.1 Total $ 11,387 $ (1,986 ) $ 9,401 $ 3,441 $ (751 ) $ 2,690 12.7 The Company recorded amortization expense related to real estate intangible assets of approximately $1.2 million and $0.6 million for the years ended December 31, 2016 and 2015, respectively. The following table represents expected amortization of existing real estate intangible assets at December 31, 2016 (dollars in thousands): For the year ending December 31: 2017 $ 1,078 2018 707 2019 687 2020 687 2021 686 Thereafter 5,556 Total $ 9,401

Debt

Debt	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt	Note 5 – Debt On July 30, 2015, the Company entered into a first amended and restated $375 million secured revolving credit facility which replaced the Company’s prior $200 million facility. Amounts outstanding under the this facility bore interest at LIBOR plus a margin between 2.75% and 3.75% or a base rate plus a margin between 2.00% and 2.50%, in each case depending on the Company’s leverage. The Company incurred fees associated with the first amended and restated credit facility of approximately $2.2 million. The Company expensed in the third quarter of 2015 approximately $0.1 million of unamortized deferred costs related to the prior credit facility. On May 17, 2016, the Company further amended its credit facility to reduce total commitments from $375 million to $300 million and extend the maturity date to November 2017. The Company paid approximately $1.4 million in fees in connection with this amendment. Prior to completion of the IPO, amounts outstanding under the first amended and restated credit agreement bore interest at LIBOR plus a margin between 2.75% and 3.75% or a base rate plus a margin between 1.75% and 2.75%, in each case depending on the Company’s leverage. Effective November 1, 2016, due to the completion of the IPO, amounts outstanding under the first amended and restated credit agreement bore interest at LIBOR plus a margin between 2.00% and 2.50% or a base rate plus a margin between 1.00% and 1.50%, in each case depending on the Company’s leverage. The total amounts of deferred financing costs included in other assets on the consolidated balance sheets at December 31, 2016 and 2015 were $2.5 million, gross ($1.5 million, net) and $3.7 million gross ($2.5 million, net), respectively. The Company recognized amortization expense of deferred financing costs, included in interest expense on the consolidated statements of operations, of $2.5 million and $2.1 million for the years ended December 31, 2016 and 2015, respectively, and $0.2 million for the period ended December 31, 2014. The amortization expense for the year ended December 31, 2016 includes approximately $0.3 million of unamortized deferred financing costs associated with the amendment that was expensed in May 2016. At December 31, 2016 and 2015, the weighted average interest rate under the first amended and restated credit agreement was 2.7% and 3.5%, respectively. The first amended and restated credit agreement included an unused fee of 0.25% for usage greater than 50.0% and 0.35% for usage of 50.0% or less. The amount available for the Company to borrow under the first amended and restated credit agreement was limited according to a borrowing base valuation of certain real estate investments owned by subsidiaries of the Operating Partnership that secure this facility. At December 31, 2016 and 2015, the Company had $144.0 million and $247.4 million outstanding under the first amended and restated credit agreement, respectively. Second Amended and Restated Credit Agreement On February 10, 2017, the Company entered into a second amended and restated $425 million secured credit facility which replaced the Company’s prior $300 million secured revolving credit facility. The second amended and restated credit agreement provides for a $300 million revolving credit facility that matures in February 2021 and a $125 million term loan that matures in February 2022. Amounts outstanding under the amended credit facility bear interest at LIBOR plus a margin between 1.75% and 3.00% or a base rate plus a margin between 0.75% and 2.00%, in each case depending on the Company’s leverage. The second amended and restated credit agreement includes an accordion feature that allows the total borrowing capacity, including the term loan component, to be increased to up to $700 million, subject to certain conditions, including obtaining additional commitments from lenders. The amount available to borrow under the amended credit facility is limited according to a borrowing base valuation of assets owned by subsidiaries of our operating partnership. The amended credit facility is secured by a pledge of our operating partnership’s equity interests in its subsidiaries that own borrowing base assets, which is substantially all of our assets. The revolving credit facility has one 12-month extension option, subject to certain conditions, including the payment of a 0.15% extension fee. The second amended and restated credit agreement will convert to an unsecured credit facility when certain conditions are met, including the Company having $1.0 billion in assets, a minimum borrowing base of $500 million, leverage not exceeding 50%, and continued compliance with the covenants under the credit agreement. The Company incurred fees associated with the second amended and restated credit facility of approximately $2.7 million, of which $1.9 million is associated with the revolving credit facility. These costs, along with the net deferred costs related to the first amended and restated credit agreement will be amortized to interest expense through February 2021, the maturity date of the amended revolving credit facility. Deferred costs of approximately $0.8 million associated with the term loan component will be netted against the balance outstanding on the term loan on the Company’s consolidated balance sheet and will be amortized to interest expense through February 2022, the maturity date of the term loan. The maximum available capacity under the amended credit facility increased to $257.6 million from $221.3 million at December 31, 2016 under the prior credit facility. At February 27, 2017, the Company had $156.5 million in borrowings outstanding under the second amended and restated credit agreement. Of this total, $31.5 million was outstanding on the revolving credit facility with an interest rate of 2.52%. Interest Rate Swap Agreements To mitigate exposure to interest rate risk, on February 10, 2017, the Company entered into interest rate swap agreements, effective April 10, 2017, on the full $125 million on the term loan to fix the variable LIBOR interest rate at 1.84%, plus the LIBOR spread under the amended credit agreement, which was 1.75% at February 27, 2016. Covenants Each of the first amended and restated credit agreement and the second amended and restated credit agreement contain customary financial and operating covenants, including covenants relating to the Company’s total leverage ratio, fixed charge coverage ratio, tangible net worth, maximum distribution/payout ratio and restrictions on recourse debt, secured debt and certain investments. Each of the amended and restated credit agreements also contain customary events of default, in certain cases subject to customary to cure, including among others, nonpayment of principal or interest, material breach of representations and warranties, and failure to comply with covenants. Any event of default, if not cured or waived, could result in the acceleration of any outstanding indebtedness under the credit agreement.

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2016
Other Assets [Abstract]
Other Assets	Note 6 - Other Assets Items included in Other Assets on the Company’s consolidated balance sheets as of December 31, 2016 and December 31, 2015 are detailed in the table below (dollars in thousands): December 31, 2016 December 31, 2015 Surety bond deposit $ 9,412 $ — Tenant allowances and lease incentives, net 8,624 6,913 Straight-line rent receivable 6,470 9,917 Prepaid assets and deposits 3,174 1,009 Deferred financing costs, net 1,465 2,521 Pre-acquisition costs 883 939 Interest and accounts receivable 561 1,729 Note receivable 450 500 Restricted cash 262 146 Corporate property, net 206 270 Capitalized pre-offering costs - 3,659 $ 31,507 $ 27,603 As discussed in Note 8, LRMC deposited approximately $9.4 million with the Company as collateral for the surety bond that is included in other assets on the consolidated balance sheet at December 31, 2016. The Company also recorded a corresponding liability related to this deposit included in accounts payable and accrued liabilities on the consolidated balance sheet at December 31, 2016. Tenant allowances and lease incentives are amortized against revenue on a straight-line basis over the lease term.

Incentive Plan

Incentive Plan	12 Months Ended
	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Incentive Plan	Note 7 - Incentive Plan The Company’s Amended and Restated 2014 Equity Incentive Plan (the “Plan”) provides for the grant of stock options, share awards (including restricted common stock and restricted stock units), stock appreciation rights, dividend equivalent rights, performance awards, annual incentive cash awards and other equity-based awards, including Long Term Incentive Plan (“LTIP”) units, which are convertible on a one-for-one basis into OP units. As of December 31, 2016, the Plan had 1,356,723 shares authorized for issuance with 295,707 shares available for future issuance, subject to certain adjustments set forth in the Plan. Restricted Stock Awards of restricted stock are awards of the Company’s common stock that are subject to restrictions on transferability and other restrictions as established by the Company’s compensation committee on the date of grant that are generally subject to forfeiture if employment terminates prior to vesting. Upon vesting, all restrictions would lapse. Except to the extent restricted under the award agreement, a participant awarded restricted stock will have all of the rights of a stockholder as to those shares, including, without limitation, the right to vote and the right to receive dividends on the shares. The awards generally cliff vest over three years or vest ratably over three years from the date of grant. The value of the awards is determined based on the market value of the Company’s common stock on the date of grant. The Company expenses the cost of restricted stock ratably over the vesting period. Restricted Stock Units The Company’s restricted stock unit (“RSU”) awards represent the right to receive unrestricted shares of common stock based on the achievement of Company performance objectives as determined by the Company’s compensation committee. Grants of RSUs prior to 2016 generally entitle recipients to shares of common stock equal to 0% up to 100% of the number of units granted at the vesting date, based on two independent criteria measured over a three-year period – (i) the Company’s absolute total stockholder return (“TSR”) and (ii) Company’s TSR relative to the MSCI US REIT Index (symbol: RMS). Grants of RSUs in 2016, granted on December 30, 2016, generally entitle recipients to shares of common stock equal to 0% up to 150% of the number of units granted at the vesting date, based on four independent criteria measured over a three-year period – (i) the Company’s growth in gross real estate investments, (ii) the Company’s growth in Adjusted Funds From Operations (“AFFO”) per share, (iii) the Company’s absolute TSR and (iv) the Company’s TSR relative to the FTSE NAREIT Equity Healthcare REIT Index. RSUs are not eligible to vote or subject to receive dividend equivalent prior to vesting. Dividend equivalents are credited to the recipient and are paid only to the extent the applicable criteria are met, and the RSUs vest and the related common stock is issued. The grant date fair value of RSUs subject to vesting based on the Company’s absolute TSR and TSR relative to a REIT index is estimated using a Monte Carlo simulation that utilizes inputs such as expected future volatility of the Company’s common stock, volatilities of certain peer companies included in the applicable indexes upon which the relative TSR performance is measured, estimated risk-free interest rate and the expected service periods of three years. The grant date fair value of RSUs subject to vesting based on the Company’s growth in gross real estate investments and the Company’s growth in AFFO per share is determined based on the market value of the Company’s common stock on the date of grant. The Company assesses the probability of achievement of the growth in gross real estate investments and growth in AFFO per share and records expense for the awards based on the probable achievement of these metrics. The Company recognizes the cost of restricted stock units ratably over the vesting period. The following table summarizes the stock-based award activity for the years ended December 31, 2016 and 2015 and the period ended December 31, 2014: Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Restricted Stock Award RSU Awards Weighted-Average Grant Date Fair Value Per RSU Outstanding as of April 23, 2014 (inception) - $ - - $ - Granted 129,555 15.00 158,927 6.53 Vested - - - - Forfeited - - - - Outstanding as of December 31, 2014 129,555 $ 15.00 158,927 $ 6.53 Granted 158,396 15.86 200,098 9.00 Vested (7,871 ) 15.00 - - Forfeited - - - - Outstanding as of December 31, 2015 280,080 $ 15.49 359,025 $ 7.91 Granted 88,915 11.83 216,750 9.50 Vested (16,202 ) 15.16 - - Forfeited - - - - Outstanding as of December 31, 2016 352,793 $ 14.57 575,775 $ 8.51 All of the shares that vested during the years ended December 31, 2016 and 2015 related to grants of restricted shares to non-employee directors. RSUs are included in the preceding table as if the participants earn shares equal to 100% of the units granted. The table below summarizes compensation expense related to share-based payments, included in general and administrative expenses, for the years ended December 31, 2016 and 2015 and the period ended December 31, 2014 (in thousands): 2016 2015 2014 Restricted stock $ 1,606 $ 1,192 $ 299 Restricted stock units 950 603 144 Stock-based compensation $ 2,556 $ 1,795 $ 443 The remaining unrecognized cost from stock-based awards at December 31, 2016 was approximately $5.6 million and will be recognized over a weighted-average period of 2.1 years. 2017 Grant On January 1, 2017, the Company granted 33,780 restricted shares of common stock to its non-employee directors as part of the annual director compensation, which will vest ratably on each of the first three anniversaries of the date of grant, subject to the director’s continued service on the Company’s board of directors through such dates. The total value of these awards is calculated to be $0.4 million.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8 - Commitments and Contingencies Commitments As of December 31, 2016, the Company was obligated under operating lease agreements consisting primarily of the Company’s corporate office lease, which expires in 2020, and a ground lease related to the medical office building in the Company’s portfolio, which expires in 2081. Annual base rent on the corporate office lease increases approximately 3.0% annually. The Company’s ground lease rent increases 2.0% annually and is included in property-related expense. Rent expense relating to the operating leases for the years ended December 31, 2016 and 2015 and the period ended December 31, 2014 was approximately $0.5 million, $0.5 million, and $0.1 million, respectively. The Company’s future minimum lease payments for its operating leases as of December 31, 2016 were as follows (dollars in thousands): For the year ending: 2017 $ 334 2018 342 2019 351 2020 203 2021 176 Thereafter 19,979 Total $ 21,385 Surety Bond On February 2, 2016, the Company agreed to provide a surety bond of $9.4 million for a litigation judgment against LRMC, which stands behind LRMC in the event it is unable to fund the entire amount of the judgment. On September 1, 2016, LRMC deposited with the Company $9.4 million of the net proceeds from the sale of their operations to BSW Health as collateral to secure the surety bond, which is included in both other assets and accounts payable and accrued liabilities on the consolidated balance sheet at December 31, 2016. The Company recognized a surety bond fee of approximately $0.2 million in interest and other income on the consolidated statement of operations for the year ended December 31, 2016. Contingencies From time to time, the Company or its properties may be subject to claims and suits in the ordinary course of business. The Company’s lessees and borrowers have indemnified, and are obligated to continue to indemnify, the Company against all liabilities arising from the operations of the properties and are further obligated to indemnify it against environmental or title problems affecting the real estate underlying such facilities. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

Equity

Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Equity	Note 9 - Equity Preferred Stock Series B On March 11, 2015 and April 1, 2015, the Company sold an aggregate of 125,000 shares of the Company’s 7.875% Series B Redeemable Cumulative Preferred Stock (“Series B Preferred Stock”), with a liquidation preference of $1,000 per share, to Carter/Validus Operating Partnership, L.P. (“Carter Validus”), for gross proceeds of $125 million. Dividends on the Series B Preferred Stock were paid monthly at an annual rate of 7.875% of the $1,000 liquidation preference plus any accumulated and unpaid dividends. On October 4, 2016, upon completion of the IPO, the Company redeemed the Series B Preferred Stock for $131.3 million, based on the $1,000 liquidation preference and a special redemption dividend equal to 5% of the liquidation preference, plus accrued and unpaid dividends of $0.9 million from September 1, 2016 through the redemption date. Common Stock Dividends During 2016 and 2015, the Company declared common stock dividends aggregating $0.63 and $0.85 per share, respectively. The following table depicts common stock dividends related to 2015 and 2016. Quarter Quarterly Dividend Date of Declaration Date of Record Date Paid 1st Quarter 2015 $ 0.17 March 25, 2015 April 2, 2015 April 14, 2015 2nd Quarter 2015 $ 0.17 August 13, 2015 August 27, 2015 September 9, 2015 3rd Quarter 2015 $ 0.21 September 18, 2015 September 30, 2015 October 13, 2015 4th Quarter 2015 (1) $ 0.30 December 9, 2015 December 31, 2015 January 14, 2016 1st Quarter 2016 $ 0.21 April 28, 2016 May 10, 2016 May 19, 2016 2nd Quarter 2016 $ 0.21 August 3, 2016 August 17, 2016 August 30, 2016 3rd Quarter 2016 $ 0.21 September 15, 2016 September 23, 2016 October 4, 2016 (1) Comprised of a regular dividend of $0.21 per share and an additional special dividend of $0.09 per share. The dividend paid in January 2016 was included in accounts payable and accrued liabilities on the consolidated balance sheets at December 31, 2015. On January 3, 2017, the Company’s board of directors declared a cash dividend of $0.21 per share for the period from October 1, 2016 to December 31, 2016. The dividend was paid on January 31, 2017 to stockholders of record on January 17, 2017. Noncontrolling Interest The Company owns Lakeway Hospital through a consolidated partnership, which, based on a total equity cash contribution of $2.0 million, is owned 51% by the Company and 49% by an entity that is owned indirectly by a physicians group and a non-physician investor. The partnership was formed on March 20, 2015. The Company’s equity contribution to the Lakeway Partnership was $1.0 million, and the Company’s transfer of the original $50.0 million note and $23.0 million of cash to the Lakeway Partnership is structured as an intercompany $73.0 million loan (the “Lakeway Intercompany Mortgage Loan”) to the Lakeway Partnership that is secured by a first mortgage lien on Lakeway Hospital. The Lakeway Intercompany Mortgage Loan has a ten-year term and requires payments of principal and interest at a rate of 8.0% per annum based on a 25-year amortization schedule. The interest rate on the Lakeway Intercompany Mortgage Loan will reset after five years based upon then-current market rates. At December 31, 2016 and 2015, the Lakeway Intercompany Mortgage Loan had an outstanding principal balance of $71.8 million and $72.7 million, respectively. Distributions to the noncontrolling interest holder in the Lakeway Partnership subsequent to December 31, 2016 were approximately $0.5 million.

Distributions (unaudited)

Distributions (unaudited)	12 Months Ended
	Dec. 31, 2016
Distributions [Abstract]
Distributions	Note 10 – Distributions (unaudited) The Company must distribute at least 90% of our taxable income in order to continue to maintain our qualification as a REIT. This distribution requirement can be satisfied by current year distributions or, to a certain extent, by distributions in the following year. For federal income tax purposes, distributions to stockholders are treated as ordinary income, return of capital or a combination thereof. The federal income tax classification of the per share common stock distributions are as follows : Year Ended December 31, 2016 2015 2014 Ordinary taxable distributions $ 0.22 $ 0.68 $ 0.08 Return of capital 0.70 - - Total $ 0.92 $ 0.68 $ 0.08 Pursuant to Internal Revenue Code Section 857(b)(9), dividend distributions made to stockholders on January 14, 2016 with a record date of December 31, 2015 are deemed to have been received by stockholders of record on December 31, 2015. Based on earnings and profits for the taxable year 2015, the Company’s aggregate cash distributions exceeded its earnings and profits for the taxable year 2015. Therefore, a portion of the January 14, 2016 cash distribution was treated as a 2016 distribution for federal income tax purposes and were included as taxable income to the recipient in 2016.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Note 11 - Earnings per Share The Company applies the two-class method for determining earnings per common share as its outstanding restricted common stock with non-forfeitable dividend rights are considered participating securities. The following table sets forth the computation of earnings per common share for the years ended December 31, 2016 and 2015 and the period from July 31, 2014 (when the Company commenced operations, rather than the Company’s date of incorporation) to December 31, 2014 (amounts in thousands, except per share amounts): Numerator: For the year ended December 31, 2016 For the year ended December 31, 2015 For the period from July 31, 2014 to December 31, 2014 Net income $ 11,316 $ 16,730 $ 23 Less: Net income attributable to noncontrolling interest (266 ) (4,029 ) — Less: Dividends on preferred shares (13,760 ) (7,835 ) — Net income (loss) attributable to common stockholders (2,710 ) 4,866 23 Less: Allocation to participating securities (182 ) (216 ) (26 ) Net income (loss) available to common stockholders $ (2,892 ) $ 4,650 $ (3 ) Denominator Weighted-average common shares- basic and diluted 15,838 10,948 10,918 Earnings (loss) per common share- basic and diluted $ (0.18 ) $ 0.42 $ (0.00 ) The effects of restricted shares of common stock and restricted stock units outstanding were excluded from the calculation of diluted income per share for all periods presented because their effects were not dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 12 - Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, receivables and payables are reasonable estimates of their fair value as of December 31, 2016 and December 31, 2015 due to their short-term nature (Level 1). The fair value of the Company’s mortgage and other notes receivable as of December 31, 2016 and December 31, 2015 is estimated by using Level 2 inputs such as discounting the estimated future cash flows using current market rates for similar loans that would be made to borrowers with similar credit ratings and for the same remaining maturities. At December 31, 2016 and December 31, 2015, the Company’s indebtedness was comprised of borrowings under the credit facility that bear interest at LIBOR plus a margin. The fair value of borrowings on the credit facility is considered to be equivalent to their carrying value. Fair value estimates are made at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. Settlement at such fair value amounts may not be possible. As of December 31, 2016 and 2015, the fair value of the Company’s $10.0 million mortgage note receivable was estimated to be approximately $10.0 million and $10.1 million, respectively.

Selected Interim Financial Data

Selected Interim Financial Data (unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Selected Interim Financial Data (unaudited)	Note 13- Selected Interim Financial Data (unaudited) The following is a summary of the unaudited quarterly financial information for the years ended December 31, 2016 and 2015 and for the period from April 23, 2014 (inception) to December 31, 2014 (amounts in thousands, except per share data): Quarter ended March 31 June 30 September 30 December 31 2016 Revenues $ 14,848 $ 6,593 $ 13,845 $ 14,010 Interest expense (3,125 ) (3,226 ) (2,792 ) (1,740 ) Net income (loss) 4,851 (3,645 ) 4,734 5,376 Preferred stock dividends (2,465 ) (2,465 ) (2,464 ) (6,366 ) Net (income) loss attributable to noncontrolling interest (1,355 ) 2,841 (821 ) (931 ) Net income (loss) attributable to common stockholders $ 1,031 $ (3,269 ) $ 1,449 $ (1,921 ) Net income (loss) attributable to common stockholders per share: Basic and diluted $ 0.09 $ (0.30 ) $ 0.12 $ (0.06 ) Quarter ended March 31 June 30 September 30 December 31 2015 Revenues $ 4,939 $ 10,924 $ 13,238 $ 15,337 Interest expense (790 ) (1,026 ) (2,341 ) (3,006 ) Net income 737 5,401 5,228 5,364 Preferred stock dividends (440 ) (2,465 ) (2,465 ) (2,465 ) Net (income) loss attributable to noncontrolling interest 15 (1,332 ) (1,339 ) (1,373 ) Net income attributable to common stockholders $ 312 $ 1,604 $ 1,424 $ 1,526 Net income attributable to common stockholders per share: Basic and diluted $ 0.03 $ 0.14 $ 0.12 $ 0.13 For the period from April 23, 2014 to September 30, 2014 For the three months ended December 31, 2014 2014 Revenues $ 1,975 $ 3,472 Interest expense - (317 ) Net income attributable to common stockholders $ (457 ) $ 480 Net income attributable to common stockholders per share: Basic and diluted $ (0.04 ) $ 0.04 The sum of the basic and diluted earnings per common share for the four quarters in the periods presented may differ from the annual earnings per common share calculation due to the required method of computing the weighted average number of common shares in the respective periods.

Schedule III Real Estate and Ac

Schedule III Real Estate and Accumulated Depreciation	12 Months Ended
	Dec. 31, 2016
Real Estate And Accumulated Depreciation Disclosure [Abstract]
Schedule III Real Estate and Accumulated Depreciation	Schedule III Real Estate and Accumulated Depreciation (dollars in thousands) Initial Cost to Company Gross Amount at Which Carried at Close of Period Property/ Portfolio Name Location Number of Properties Type of Property (3) Encumbrances Land Building and improvements and intangible lease assets Furniture, fixtures, and equipment Cost Capitalized Subsequent to Acquisition Land Building and improvements and intangible lease assets Furniture, fixtures, and equipment Total (1) Accumulated Depreciation (1) (2) Date of Construction Date Acquired Texas SNF Portfolio TX 10 SNF $ - $ 4,325 $ 140,815 $ - $ 2 $ 4,325 $ 140,817 $ - $ 145,142 $ (6,216 ) 1963-2013 2015 Life Generations Portfolio CA 6 SNF/ALF - 18,338 75,592 2,748 19 18,341 75,607 2,749 96,697 (5,626 ) 1966-1992 2015 Lakeway Hospital TX 1 ACH - 5,181 69,875 - - 5,181 69,875 - 75,056 (2,881 ) 2012 2015 Kentfield Rehabilitation & Specialty Hospital CA 1 LTACH - 6,204 51,826 - - 6,204 51,826 - 58,030 (3,510 ) 1962 2014 Mountain's Edge Hospital NV 1 ACH - 2,296 27,116 - - 2,296 27,116 - 29,412 (1,071 ) 2015 2015 Horizon Specialty Hospital of Henderson NV 1 LTACH - 733 19,277 - - 733 19,277 - 20,010 (1,300 ) 2012 2014 Magnolia Place of Spartanburg SC 1 SNF - 170 19,830 - - 170 19,830 - 20,000 (1,284 ) 1989 2014 Vibra Rehabilitation Hospital of Amarillo TX 1 IRF - 991 18,181 227 - 991 18,181 227 19,399 (1,183 ) 1990 2015 Mira Vista Court TX 1 SNF - 1,343 14,657 - - 1,343 14,657 - 16,000 (858 ) 2013 2015 North Brownsville Medical Plaza TX 1 MOB - - 15,128 - - - 15,128 - 15,128 (2,123 ) 2007 2014 Total $ - $ 39,581 $ 452,297 $ 2,975 $ 21 $ 39,584 $ 452,314 $ 2,976 $ 494,874 $ (26,052 ) Reference footnotes on the next page. (1) The changes in total real estate and accumulated depreciation for the years ended December 31, 2016 and 2015 and the period ended December 31, 2014 are as follows: For the year ended December 31, 2016 For the year ended December 31, 2015 For the period from April 23, 2014 (inception) to December 31, 2014 Cost Balance at beginning of period $ 504,853 $ 113,168 $ - Acquisitions - 323,685 113,168 Capitalized costs 21 - - Foreclosure of mortgage note - 50,000 - Conversion of mortgage note - 18,000 - Elimination of earn-out payment (10,000 ) - - Balance at end of period $ 494,874 $ 504,853 $ 113,168 Accumulated Depreciation Balance at beginning of period $ 11,172 $ 1,268 $ - Depreciation 14,880 9,904 1,268 Balance at end of period $ 26,052 $ 11,172 $ 1,268 The unaudited aggregate tax value of real estate assets for federal income tax purposes as of December 31, 2016 is estimated to be $475 million. (2) The cost of building and improvements is depreciated on a straight-line basis over the estimated useful lives of the buildings and improvements, ranging primarily from 2 to 50 years. The cost of intangible lease assets are depreciated on a straight-line basis over the initial term of the related leases, ranging primarily from 2.7 to 15 years. See note 2 to the consolidated financial statements for information on useful lives used for depreciation and amortization. (3) LTACH -- long-term acute care hospital; SNF -- skilled nursing facility; MOB -- medical office building; IRF -- inpatient rehabilitation facility; ACH -- acute care hospital; ALF -- assisted living facility

Schedule IV Mortgage Loans Rece

Schedule IV Mortgage Loans Receivable on Real Estate	12 Months Ended
	Dec. 31, 2016
Mortgage Loans On Real Estate [Abstract]
Schedule IV Mortgage Loans Receivable on Real Estate	Schedule IV Mortgage Loans Receivable on Real Estate (dollars in thousands) Description Interest Rate Final Maturity Date Periodic Payment Terms Prior Liens Face Amount of Mortgages Carrying Amount of Mortgages (2) Principal Amount of Loans Subject to Delinquent Principal or Interest First mortgage relating to 1 property in: Springfield, Massachusetts -- rehabilitation hospital 9.00 % 7/31/2034 (1) - $ 10,000 $ 10,000 - $ 10,000 $ 10,000 (1) Following an initial interest-only five year term, the Springfield, Massachusetts loan will automatically convert to a 15-year amortizing loan requiring payments of principal and interest unless prepaid. The Springfield, Massachusetts loan may be prepaid during the initial five-year term only if Vibra Healthcare, LLC or Vibra Healthcare II, LLC, or one of their respective affiliates, enters into a sale-leaseback transaction with the Company equal to or exceeding $25.0 million in value. (2) Carrying amount of mortgages represents the contractual amount due under the mortgage note as of the date of this schedule IV and excludes any other fees or costs associated with the mortgage notes and their origination. The aggregate cost for federal income tax purposes as of December 31, 2016 is estimated to be $10.0 million. Changes in mortgage loans for the periods ended December 31, 2016, 2015 and 2014 are summarized as follows: For the year ended December 31, 2016 For the year ended December 31, 2015 For the period from April 23, 2014 (inception) to December 31, 2014 Balance at beginning of period $ 10,000 $ 78,000 $ - Additions during year: New mortgage loans - - 78,000 - - 78,000 Deductions during year: Collection of principal - - - Foreclosure of mortgage note - (50,000 ) (3) - Conversion to fee simple ownership - (18,000 ) (4) - - (68,000 ) - Balance at end of period $ 10,000 $ 10,000 $ 78,000 (3) On February 3, 2015, the Company acquired an acute care hospital in Lakeway, Texas ("Lakeway Hospital"), through a negotiated, non-judicial foreclosure and payment of an additional $25.0 million in cash consideration, for a total investment of $75.0 million. The Company originally acquired a mortgage note receivable for $50.0 million on December 29, 2014, which had an outstanding principal balance of approximately $163.9 million and was secured by a first mortgage lien on Lakeway Hospital. The operator of the facility defaulted on debt service payments under the note in 2013, and the U.S. Department of Housing and Urban Development held an auction in December 2014 through which the Company acquired the mortgage note. (4) On October 1, 2015, the Company completed the acquisition of Vibra Rehabilitation of Amarillo for a purchase price of $19.4 million, pursuant to the exercise of its exclusive right to purchase the property contained in the Company's $18.0 million mortgage note receivable. The $18.0 million in principal outstanding on the mortgage note receivable was applied to the purchase price.

Accounting Policies and Relat22

Accounting Policies and Related Matters (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates : The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the amounts of revenue and expense reported in the period. Significant estimates are made for the valuation of real estate and intangibles and fair value assessments with respect to purchase price allocations. Actual results may differ from those estimates.
Reclassifications	Reclassifications : Certain reclassifications have been made to the consolidated balance sheet as of December 31, 2015 to conform to the 2016 presentation.
Principles of Consolidation	Principles of Consolidation : The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries and subsidiaries in which the Company has a controlling interest. All material intercompany transactions and balances have been eliminated in consolidation. There are no material differences between the Company and the Operating Partnership as of December 31, 2016.
Noncontrolling Interest	Noncontrolling Interest : The portion of equity not owned by the Company in entities controlled by the Company, and thus consolidated, is presented as noncontrolling interest and classified as a component of consolidated equity, separate from total stockholders’ equity on the Company’s consolidated balance sheets. The amount recorded will be based on the noncontrolling interest holder’s initial investment in the consolidated entity, adjusted to reflect the noncontrolling interest holder’s share of earnings or losses in the consolidated entity and any distributions received or additional contributions made by the noncontrolling interest holder. The earnings or losses from the entity attributable to noncontrolling interests are reflected in “net income attributable to noncontrolling interest” in the consolidated statements of operations.
Segment Reporting	Segment Reporting : The Company owns, acquires, and finances healthcare-related properties. The Company is managed as one reporting unit, rather than multiple reporting units, for internal reporting purposes and for internal decision-making. Therefore, the Company discloses its operating results in a single reportable segment.
Cash and Cash Equivalents	Cash and Cash Equivalents : Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The majority of the Company’s cash and cash equivalents are held at major commercial banks which at times may exceed the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses to date on invested cash.
Restricted Cash	Restricted Cash : Restricted cash consists of amounts funded by tenants and held by the Company for payment of costs and expenses associated with capital improvements, repairs and replacements to be performed at certain of the Company’s facilities. As of December 31, 2016 and December 31, 2015, the restricted cash balance was approximately $ 0.3 million and $0.1 million, respectively, and is included in Other Assets on the Company’s consolidated balance sheets.
Revenue Recognition	Revenue Recognition: Leases of Real Estate Properties At the inception of a new lease arrangement, including new leases that arise from amendments, the Company assesses the terms and conditions to determine the proper lease classification. Currently, all of the Company’s lease arrangements are classified as operating leases. Rental revenue for operating leases is recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of a leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or by the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. The determination of ownership of the tenant improvements is subject to significant judgment. If the Company’s assessment of the owner of the tenant improvements for accounting purposes were different, the timing and amount of revenue recognized would be impacted. The Company maintains an allowance for doubtful accounts, including an allowance for operating lease straight-line rent receivables, for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of tenants and operators on a continuous basis. This evaluation considers industry and economic conditions, property performance, credit enhancements and other factors. For straight-line rent amounts, the Company’s assessment is based on income recoverable over the term of the lease. The Company exercises judgment in establishing allowances and considers payment history and current credit status in developing these estimates. These estimates may differ from actual results, which could be material to the consolidated financial statements. At December 31, 2016 and December 31, 2015, the Company had no allowance for doubtful accounts. The Company’s leases are generally “triple-net” leases with terms requiring operating expenses associated with the Company’s facilities, such as taxes, insurance and utilities, to be paid directly by the Company’s tenants. Failure by a tenant to pay such expenses, or to pay late, would result in a violation of the lease agreement, which could lead to an event of default if not cured timely. Leases in the medical office building owned by the Company require tenants to make estimated payments to the Company to cover their proportional share of operating expenses, including, but not limited to, real estate taxes, property insurance, routine maintenance and repairs, utilities, and property management expenses. The Company collects these estimated expenses and is reimbursed by tenants for any actual expense in excess of estimates or reimburses tenants if collected estimates exceed actual operating results. The reimbursements are recorded in rental income as operating expense recoveries, and the expenses are recorded in property-related expenses, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the credit risk. For the years ended December 31, 2016 and December 31, 2015, the Company reported operating expense recoveries, primarily related to its one medical office building, totaling $0.9 million and $0.8 million, respectively, which is included in rental income on the consolidated statement of operations. For the period from April 23, 2014 to December 31, 2014, the Company reported operating expense recoveries totaling approximately $0.2 million. Revenue Recognition: Mortgage Notes and Other Receivables Mortgage notes receivable are classified as held-for-investment based on management’s intent and ability to hold the mortgage notes receivable for the foreseeable future or to maturity. The Company recognizes interest income on mortgage notes receivable, including the amortization of any discounts and premiums, using the interest method applied on a loan-by-loan basis when collectability of the future payments is reasonably assured. Premiums, discounts and related costs are recognized as yield adjustments over the term of the related loans. Mortgage notes receivable are placed on non-accrual status at such time as management determines that collectability of contractual amounts is not reasonably assured. While on non-accrual status, mortgage notes receivable are either accounted for on a cash basis, in which income is recognized only upon receipt of cash, or on a cost-recovery basis, where cash receipts reduce the carrying value of the loan, based on management’s judgment of collectability. No mortgage notes receivable are currently on non-accrual status. Allowances are established for loans based upon an estimate of probable losses on an individual basis if they are determined to be impaired. Loans are impaired when it is deemed probable that the Company will be unable to collect all amounts due on a timely basis in accordance with the contractual terms of the loan. The allowance is based upon management’s assessment of the borrower’s overall financial condition, resources and payment record; the prospects for support from any financially responsible guarantors; and, if appropriate, the net realizable value of any collateral. These estimates consider all available evidence including, as appropriate, the present value of the expected future cash flows discounted at the loan’s effective interest rate, the fair value of collateral, general economic conditions and trends, historical and industry loss experience, and other relevant factors. At December 31, 2016 and December 31, 2015, the Company had no allowance for loan losses. Commitment, origination and other fees from lending activities are recognized as interest income over the life of the loan.
Allocation of Purchase Price of Acquired Real Estate	Allocation of Purchase Price of Acquired Real Estate : As part of the purchase price allocation process of acquisitions (whether an asset acquisition acquired via purchase/leaseback or a business combination via an asset acquired from the current lessor), management makes estimates based upon the relative fair values of each component for asset acquisitions and at a fair value of each component for business combinations. In making estimates of fair values for purposes of allocating purchase prices of acquired real estate, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. The Company also considers information obtained about each property as a result of the Company’s pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the assets acquired. The Company records above-market and below-market in-place lease values, if any, for its facilities, which are based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease, or, for below-market in-place leases, including any bargain renewal option terms. The Company amortizes any resulting capitalized above-market lease values as a reduction of rental income over the lease term. The Company amortizes any resulting capitalized below-market lease values as an increase to rental income over the lease term. As of December 31, 2016, the Company had one above-market in-place lease with a gross value of $7.6 million. The Company did not have any below-market in-place leases as of December 31, 2016. The Company amortizes the value of in-place leases to amortization expense over the initial term of the respective leases. If a lease is terminated, the unamortized portion of the in-place lease value is charged to amortization expense. Depreciation and amortization of real estate assets and liabilities is provided for on a straight-line basis over the assets estimated useful lives of the assets: Building 25 to 50 years Improvements 2 to 47 years Lease intangibles 2.7 to 15 years Furniture, fixtures, and equipment 5 to 14 years
Asset Impairment	Asset Impairment: Real Estate Properties Real estate asset impairment losses are recorded when events or changes in circumstances indicate the asset is impaired and the estimated undiscounted cash flows to be generated by the asset are less than its carrying amount. Management assesses the impairment of properties individually and impairment losses are calculated as the excess of the carrying amount over the fair value of assets to be held and used, and carrying amount over the fair value less cost to sell in instances where management has determined that the Company will dispose of the property and the criteria are met for the property to be classified as held-for-sale. In determining the fair value, the Company uses current appraisals or other third party opinions of value and other estimates of fair value such as estimated discounted future cash flows. Asset Impairment: Mortgage Notes and Other Receivables The Company evaluates the carrying value of mortgage notes receivable on an individual basis. Management periodically evaluates the realizability of future cash flows from the mortgage note receivable when events or circumstances, such as non-receipt of principal and interest payments and/or significant deterioration of the financial condition of the borrower, indicate that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the mortgage note agreement. An impairment charge is recognized in current period earnings and is calculated as the difference between the carrying amount of the mortgage note receivable and the discounted cash flows expected to be received, or if foreclosure is probable, the fair value of the collateral securing the mortgage.
Earnings Per Share	Earnings Per Share : Basic earnings per common share is computed by dividing net income (loss) applicable to common shares by the weighted number of shares of common stock outstanding during the period. Diluted earnings per common share is calculated by including the effect of dilutive securities. Certain of the Company’s unvested restricted stock awards contain non-forfeitable rights to dividends, and accordingly, these awards are deemed to be participating securities. These participating securities are included in the earnings allocation in computing both basic and diluted earnings per common share.
Income Taxes	Income Taxes : Commencing with its short taxable year ended December 31, 2014, the Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). The Company intends at all times to maintain its qualification as a REIT under Sections 856 through 860 of the Code. The Company has elected that its subsidiary, MedEquities Realty TRS, LLC, be taxed as a TRS under provisions of the Code. A TRS is subject to federal and state income taxes like those applicable to regular corporations. Aside from such income taxes that may be applicable to the taxable income in the Company’s TRS, the Company will not be subject to federal income tax provided that the Company continues to maintain its qualification as a REIT and makes distributions to stockholders equal to or in excess of the Company’s taxable income. The Company’s federal tax returns for the short taxable year ended December 31, 2014 year and for the year ended December 31, 2015 are currently subject to examination by taxing authorities. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Company’s consolidated financial statements as a component of income tax expense. The Company has made no U.S. federal income tax payments.
Stock-Based Compensation	Stock-Based Compensation : The fair value of stock-based awards is calculated on the date of grant. The Company amortizes the stock-based compensation expense on a straight-line basis over the period that the awards are expected to vest, net of any forfeitures.
Deferred Costs	Deferred Costs : Costs incurred prior to the completion of offerings of stock or other capital instruments that directly relate to the offering are deferred and netted against proceeds received from the offering.
Fair Value Measurement	Fair Value Measurement : Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. In calculating fair value, a company must maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. A hierarchy of valuation techniques is defined to determine whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These inputs have created the following fair value hierarchy: • Level 1 - quoted prices for identical instruments in active markets; • Level 2 - quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3 - fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. If quoted market prices or inputs are not available, fair value measurements are based upon valuation models that utilize current market or independently sourced market inputs, such as interest rates, option volatilities, credit spreads and market capitalization rates. Items valued using such internally-generated valuation techniques are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified in either Level 2 or 3 even though there may be some significant inputs that are readily observable. Valuation techniques used by the Company include the use of third-party valuations and internal valuations, which may include discounted cash flow and Monte Carlo valuation models. For the years ended December 31, 2016 and 2015 the Company has recorded all acquisitions and business combinations based on our estimated fair values. The fair values were obtained from third-party appraisals based on comparable properties (using the market approach, which involved Level 3 inputs in the fair value hierarchy).
Accumulated Other Comprehensive Income (loss)	Accumulated Other Comprehensive Income (loss) : Certain items must be included in comprehensive income (loss), including items such as foreign currency translation adjustments, minimum pension liability adjustments, and unrealized gains or losses on available-for-sale securities. Through December 31, 2016, the Company had no items included in other comprehensive income (loss).
Recent Accounting Developments	Recent Accounting Developments : In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” a comprehensive new revenue recognition standard that supersedes most of the existing revenue recognition guidance. This standard’s core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company’s revenues, are not within the scope of the new standard and will continue to be accounted for under existing standards. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of this standard by one year. This standard is effective for public companies beginning after December 15, 2017 and interim periods therein for public companies. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company continues to evaluate this standard. However, the standard is not expected to have a significant impact on the Company’s consolidated financial position, results of operations and cash flows since the Company’s revenues consist primarily of rental income from leasing arrangements, which are specifically excluded from the guidance in ASU 2014-09. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which expands upon the guidance on the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance requires a retrospective application and is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30),” which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The Company adopted these standards on January 1, 2016, which did not have a significant impact on the Company’s consolidated financial position or results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer will be required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Entities will also be required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU were effective for fiscal years beginning January 1, 2016 and require the prospective application for adjustments to provisional amounts that occur after the effective date. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheet and making targeted improvements to lessor accounting. The guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance will be effective beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends the accounting for share-based payment transactions, including income tax effects, equity versus liability classification and classification on the statement of cash flows. The guidance is effective for annual and interim periods of public entities beginning January 1, 2017. Early adoption is permitted in any annual or interim period for which financial statements have not been issued or made available for issuance. The Company adopted this standard on January 1, 2017, which did not have a significant impact on the Company’s consolidated financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard also requires additional disclosures related to significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The amended guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2020 with early adoption permitted for the fiscal years, and interim periods within those fiscal years, beginning January 1, 2019. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows- Restricted Cash,” which required that a statement of cash flows explains the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2018. The adoption of this guidance will change the presentation of restricted cash on our statement of cash flows; however, it will have no impact on our results of operations, financial condition, or liquidity.

Accounting Policies and Relat23

Accounting Policies and Related Matters (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Estimated Useful Lives of Assets	Depreciation and amortization of real estate assets and liabilities is provided for on a straight-line basis over the assets estimated useful lives of the assets: Building 25 to 50 years Improvements 2 to 47 years Lease intangibles 2.7 to 15 years Furniture, fixtures, and equipment 5 to 14 years

Investment Activity (Tables)

Investment Activity (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Revised Purchase Price Allocation of Properties	The revised allocations for these properties are as follows (dollars in thousands): Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Land $ 2,995 $ 991 $ 3,986 Buildings and improvements 11,760 10,235 21,995 Intangible lease assets — 7,946 7,946 Furniture, fixtures, and equipment 347 227 574 Total real estate properties acquired $ 15,102 $ 19,399 $ 34,501
Schedule of Change in Estimates of Purchase Price Allocation	The following table shows the impact of amounts recorded in the consolidated statement of operations for the year ended December 31, 2016 due to the change in the estimates of the purchase price allocations that would have been recorded in the consolidated statement of operations in prior periods had the adjustment to the provisional amounts been recognized as of the acquisition date (dollars in thousands). Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Rental income $ — $ (127 ) $ (127 ) Depreciation and amortization 26 (79 ) (53 ) Net income attributable to common stockholders $ (26 ) $ (48 ) $ (74 )
Summary of Purchase Price Allocations for Real Estate Investment Activity	A summary of the purchase price allocations for the Company’s real estate investment activity for the year ended December 31, 2015 is as follows (dollars in thousands). For the year ended December 31, 2015 Land $ 32,975 Building improvements 356,207 Intangible lease assets 103 Furniture, fixtures, and equipment 2,401 Total real estate 391,686 Foreclosed mortgage note receivable (50,000 ) Conversion of mortgage note receivable (18,000 ) Kearny Mesa earn-out (10,000 ) Total cash paid $ 313,686
Schedule of Future Minimum Payments for Operating Leases	Minimum cash rental payments due to the Company in future periods under operating leases for the Company’s properties that have non-cancelable terms as of December 31, 2016 are as follows (dollars in thousands): For the year ending December 31: 2017 $ 50,577 2018 49,741 2019 50,241 2020 50,972 2021 51,773 Thereafter 509,139 Total $ 762,443
Credit Concentration Risk | Sales Revenue, Net
Concentrations of Credit Risks	The following table contains information regarding tenant concentration in the Company’s portfolio, based on the percentage of revenues (rental income and interest on mortgage notes receivable for the years ended December 31, 2016 and 2015, and the period from April 23, 2014 (inception) to December 31, 2014, related to tenants, or affiliated tenants, that exceed 10% of revenues. % of Revenue for the year ended December 31, 2016 2015 2014 GruenePointe Holdings 28.9% 13.0% - Life Generations Healthcare 17.5% 13.1% - Fundamental Healthcare 16.7% 16.4% 28.4% Vibra Healthcare 15.5% 18.2% 60.4% LRMC (2) (1) 34.2% -
Geographic Concentration Risk | Sales Revenue, Net
Concentrations of Credit Risks	The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of December 31, 2016 and 2015, which includes percentage of rental income for the years ended December 31, 2016 and 2015 (dollars in thousands). Number of properties at December 31, Gross Investment at December 31, % of Total Real Estate Property investments at December 31, % of Rental Income State 2016 2015 2016 2015 2016 2015 For the year ended December 31, 2016 For the year ended December 31, 2015 Texas 14 14 $ 270,725 $ 270,723 54.7% 53.6% 57.6% 59.3% California 7 7 154,727 164,708 31.3% 32.6% 28.7% 26.5% Nevada 2 2 49,422 49,422 10.0% 9.8% 9.7% 9.5% South Carolina 1 1 20,000 20,000 4.0% 4.0% 4.0% 4.7% 24 24 $ 494,874 $ 504,853 100.0% 100.0% 100.0% 100.0%

Real Estate Intangibles (Tables

Real Estate Intangibles (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Carrying Amount of Real Estate Intangible Assets	The following is a summary of the carrying amount of real estate intangible assets (dollars in thousands): December 31, 2016 December 31, 2015 Gross Intangibles Accumulated Amortization Net Intangibles Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Life (Years) as of December 31, 2016 Above-market lease intangible $ 7,636 $ (637 ) $ 6,999 $ - $ - $ - 13.8 In-place leases 2,406 (932 ) 1,474 2,096 (512 ) 1,584 9.4 Leasing commissions 1,294 (397 ) 897 1,294 (228 ) 1,066 10.1 Legal/marketing fees 51 (20 ) 31 51 (11 ) 40 9.1 Total $ 11,387 $ (1,986 ) $ 9,401 $ 3,441 $ (751 ) $ 2,690 12.7
Expected Amortization of Existing Real Estate Intangible Assets	The following table represents expected amortization of existing real estate intangible assets at December 31, 2016 (dollars in thousands): For the year ending December 31: 2017 $ 1,078 2018 707 2019 687 2020 687 2021 686 Thereafter 5,556 Total $ 9,401

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Other Assets [Abstract]
Schedule of Other Assets on Consolidated Balance Sheet	Items included in Other Assets on the Company’s consolidated balance sheets as of December 31, 2016 and December 31, 2015 are detailed in the table below (dollars in thousands): December 31, 2016 December 31, 2015 Surety bond deposit $ 9,412 $ — Tenant allowances and lease incentives, net 8,624 6,913 Straight-line rent receivable 6,470 9,917 Prepaid assets and deposits 3,174 1,009 Deferred financing costs, net 1,465 2,521 Pre-acquisition costs 883 939 Interest and accounts receivable 561 1,729 Note receivable 450 500 Restricted cash 262 146 Corporate property, net 206 270 Capitalized pre-offering costs - 3,659 $ 31,507 $ 27,603

Incentive Plan (Tables)

Incentive Plan (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Award Activity	The following table summarizes the stock-based award activity for the years ended December 31, 2016 and 2015 and the period ended December 31, 2014: Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Restricted Stock Award RSU Awards Weighted-Average Grant Date Fair Value Per RSU Outstanding as of April 23, 2014 (inception) - $ - - $ - Granted 129,555 15.00 158,927 6.53 Vested - - - - Forfeited - - - - Outstanding as of December 31, 2014 129,555 $ 15.00 158,927 $ 6.53 Granted 158,396 15.86 200,098 9.00 Vested (7,871 ) 15.00 - - Forfeited - - - - Outstanding as of December 31, 2015 280,080 $ 15.49 359,025 $ 7.91 Granted 88,915 11.83 216,750 9.50 Vested (16,202 ) 15.16 - - Forfeited - - - - Outstanding as of December 31, 2016 352,793 $ 14.57 575,775 $ 8.51
Summary of Share Based Compensation Expense	The table below summarizes compensation expense related to share-based payments, included in general and administrative expenses, for the years ended December 31, 2016 and 2015 and the period ended December 31, 2014 (in thousands): 2016 2015 2014 Restricted stock $ 1,606 $ 1,192 $ 299 Restricted stock units 950 603 144 Stock-based compensation $ 2,556 $ 1,795 $ 443

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments for Operating Leases	The Company’s future minimum lease payments for its operating leases as of December 31, 2016 were as follows (dollars in thousands): For the year ending: 2017 $ 334 2018 342 2019 351 2020 203 2021 176 Thereafter 19,979 Total $ 21,385

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of Common Stock Dividend	The following table depicts common stock dividends related to 2015 and 2016. Quarter Quarterly Dividend Date of Declaration Date of Record Date Paid 1st Quarter 2015 $ 0.17 March 25, 2015 April 2, 2015 April 14, 2015 2nd Quarter 2015 $ 0.17 August 13, 2015 August 27, 2015 September 9, 2015 3rd Quarter 2015 $ 0.21 September 18, 2015 September 30, 2015 October 13, 2015 4th Quarter 2015 (1) $ 0.30 December 9, 2015 December 31, 2015 January 14, 2016 1st Quarter 2016 $ 0.21 April 28, 2016 May 10, 2016 May 19, 2016 2nd Quarter 2016 $ 0.21 August 3, 2016 August 17, 2016 August 30, 2016 3rd Quarter 2016 $ 0.21 September 15, 2016 September 23, 2016 October 4, 2016

Distributions (unaudited) (Tabl

Distributions (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Distributions [Abstract]
Federal Income Tax Classification of Per Share Common Stock Distributions	The federal income tax classification of the per share common stock distributions are as follows : Year Ended December 31, 2016 2015 2014 Ordinary taxable distributions $ 0.22 $ 0.68 $ 0.08 Return of capital 0.70 - - Total $ 0.92 $ 0.68 $ 0.08

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Computation of Earnings Per Common Share	The following table sets forth the computation of earnings per common share for the years ended December 31, 2016 and 2015 and the period from July 31, 2014 (when the Company commenced operations, rather than the Company’s date of incorporation) to December 31, 2014 (amounts in thousands, except per share amounts): Numerator: For the year ended December 31, 2016 For the year ended December 31, 2015 For the period from July 31, 2014 to December 31, 2014 Net income $ 11,316 $ 16,730 $ 23 Less: Net income attributable to noncontrolling interest (266 ) (4,029 ) — Less: Dividends on preferred shares (13,760 ) (7,835 ) — Net income (loss) attributable to common stockholders (2,710 ) 4,866 23 Less: Allocation to participating securities (182 ) (216 ) (26 ) Net income (loss) available to common stockholders $ (2,892 ) $ 4,650 $ (3 ) Denominator Weighted-average common shares- basic and diluted 15,838 10,948 10,918 Earnings (loss) per common share- basic and diluted $ (0.18 ) $ 0.42 $ (0.00 )

Selected Interim Financial Da32

Selected Interim Financial Data (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Summary of Unaudited Quarterly Financial Information	The following is a summary of the unaudited quarterly financial information for the years ended December 31, 2016 and 2015 and for the period from April 23, 2014 (inception) to December 31, 2014 (amounts in thousands, except per share data): Quarter ended March 31 June 30 September 30 December 31 2016 Revenues $ 14,848 $ 6,593 $ 13,845 $ 14,010 Interest expense (3,125 ) (3,226 ) (2,792 ) (1,740 ) Net income (loss) 4,851 (3,645 ) 4,734 5,376 Preferred stock dividends (2,465 ) (2,465 ) (2,464 ) (6,366 ) Net (income) loss attributable to noncontrolling interest (1,355 ) 2,841 (821 ) (931 ) Net income (loss) attributable to common stockholders $ 1,031 $ (3,269 ) $ 1,449 $ (1,921 ) Net income (loss) attributable to common stockholders per share: Basic and diluted $ 0.09 $ (0.30 ) $ 0.12 $ (0.06 ) Quarter ended March 31 June 30 September 30 December 31 2015 Revenues $ 4,939 $ 10,924 $ 13,238 $ 15,337 Interest expense (790 ) (1,026 ) (2,341 ) (3,006 ) Net income 737 5,401 5,228 5,364 Preferred stock dividends (440 ) (2,465 ) (2,465 ) (2,465 ) Net (income) loss attributable to noncontrolling interest 15 (1,332 ) (1,339 ) (1,373 ) Net income attributable to common stockholders $ 312 $ 1,604 $ 1,424 $ 1,526 Net income attributable to common stockholders per share: Basic and diluted $ 0.03 $ 0.14 $ 0.12 $ 0.13 For the period from April 23, 2014 to September 30, 2014 For the three months ended December 31, 2014 2014 Revenues $ 1,975 $ 3,472 Interest expense - (317 ) Net income attributable to common stockholders $ (457 ) $ 480 Net income attributable to common stockholders per share: Basic and diluted $ (0.04 ) $ 0.04

Organization and Nature of Bu33

Organization and Nature of Business - Additional Information (Details) $ / shares in Units, $ in Millions	Oct. 28, 2016shares	Oct. 04, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)Property	Dec. 31, 2016USD ($)PropertyMortgage
Organization And Nature Of Business [Line Items]
Investment in real estate properties and mortgage note receivable				$ 478.8
Number of real estate properties | Property			24	24
Number of mortgage notes receivable | Mortgage				1
Ownership interest				100.00%
Percentage of annual taxable income distribute to shareholders.				90.00%
IPO
Organization And Nature Of Business [Line Items]
Common stock issued | shares		19,000,000
Common stock issued, price per share | $ / shares		$ 12
Aggregate net proceeds from offering		$ 221.6
Offering expenses paid			$ 2.7
Preferred stock redemption amount		131.4
Repayment of secured credit facility		$ 94.8
Over-Allotment Option
Organization And Nature Of Business [Line Items]
Common stock issued | shares	1,434,567
Acute Care Hospital
Organization And Nature Of Business [Line Items]
Ownership percentage by parent				51.00%

Accounting Policies and Relat34

Accounting Policies and Related Matters - Additional Information (Details)	8 Months Ended	12 Months Ended
	Dec. 31, 2014USD ($)	Dec. 31, 2016USD ($)Segment	Dec. 31, 2015USD ($)
Accounting Policies And Related Matters [Line Items]
Number of reportable segments | Segment		1
Restricted cash balance		$ 300,000	$ 100,000
Allowance for doubtful accounts		0	0
Operating expense recoveries	$ 200,000
Allowance for loan losses		0	0
Intangible lease assets		11,387,000	3,441,000
Real Estate
Accounting Policies And Related Matters [Line Items]
Intangible lease assets		11,387,000	3,441,000
Above Market Leases | Real Estate
Accounting Policies And Related Matters [Line Items]
Intangible lease assets		7,636,000
Medical Office Building
Accounting Policies And Related Matters [Line Items]
Operating expense recoveries		$ 900,000	$ 800,000

Accounting Policies and Relat35

Accounting Policies and Related Matters - Schedule of Estimated Useful Lives of Assets (Details)	12 Months Ended
	Dec. 31, 2016
Minimum | Lease Intangibles
Property, Plant and Equipment [Line Items]
Estimated useful lives of intangible assets	2 years 8 months 12 days
Minimum | Building
Property, Plant and Equipment [Line Items]
Estimated useful lives	25 years
Minimum | Improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Minimum | Furniture, Fixtures, and Equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Maximum | Lease Intangibles
Property, Plant and Equipment [Line Items]
Estimated useful lives of intangible assets	15 years
Maximum | Building
Property, Plant and Equipment [Line Items]
Estimated useful lives	50 years
Maximum | Improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	47 years
Maximum | Furniture, Fixtures, and Equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives	14 years

Investment Activity - Lakeway H

Investment Activity - Lakeway Hospital Operator Change - Additional Information (Details) - USD ($)	Sep. 01, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2016
Baylor Scott And White Health
Investment Activity [Line Items]
Date of tenant change	Sep. 1, 2016
Initial lease term						15 years
Lease term, description						an initial term of 15 years with two ten-year extension options.
Annual base lease rent	$ 12,800,000
Purchase option, description						The lease provides that, commencing after completion of the third year of the lease and subject to certain conditions, the Baylor Lessee has the option to purchase Lakeway Hospital at a price equal to the aggregate base rent payable under the lease for the 12-month period following the date of the written notice from the Baylor Lessee divided by
Tenant allowances paid	$ 2,300,000
Baylor Scott And White Health | Second Anniversary
Investment Activity [Line Items]
Lease rent increase percentage	1.75%
Baylor Scott And White Health | Third Anniversary
Investment Activity [Line Items]
Lease rent increase percentage	2.00%
Baylor Scott And White Health | Anniversary Thereafter
Investment Activity [Line Items]
Lease rent increase percentage	2.50%
Baylor Scott And White Health | After Completion Of Third Lease Year And Before Completion Of Tenth Lease Year
Investment Activity [Line Items]
Purchase price percentage	6.50%
Baylor Scott And White Health | After Completion Of Third Lease Year And Before Completion Of Tenth Lease Year | Maximum
Investment Activity [Line Items]
Purchase option amount	$ 203,600,000
Baylor Scott And White Health | Anniversary Thereafter
Investment Activity [Line Items]
Purchase price percentage	7.00%
Lakeway Regional Medical Center
Investment Activity [Line Items]
Deferred payment lease base rent		$ 3,500,000	$ 1,700,000
Reduced monthly base rent due				$ 500,000	$ 500,000
Stabilized monthly lease rent		1,100,000
Lease termination receivable			1,500,000
Bad debt expense			$ 200,000
Deferred payment unrecognized						$ 1,800,000
Straight-line rent receivable written off		$ 7,000,000
Lakeway Regional Medical Center | Noncontrolling Interest
Investment Activity [Line Items]
Straight-line rent receivable written off						$ 3,600,000

Investment Activity - Adjustmen

Investment Activity - Adjustments to Purchase Price Allocations of 2015 Acquisitions - Additional Information (Details) - Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Business acquisition, land	$ 3,986	$ 4,600
Business acquisition, buildings and improvements	21,995	$ 39,900
Elimination of earn-out consideration	$ 10,000

Investment Activity - Schedule

Investment Activity - Schedule of Revised Purchase Price Allocation of Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Kearny Mesa
Business Acquisition [Line Items]
Land	$ 2,995
Buildings and improvements	11,760
Furniture, fixtures, and equipment	347
Total real estate properties acquired	15,102
Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Land	991
Buildings and improvements	10,235
Intangible lease assets	7,946
Furniture, fixtures, and equipment	227
Total real estate properties acquired	19,399
Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Land	3,986	$ 4,600
Buildings and improvements	21,995	$ 39,900
Intangible lease assets	7,946
Furniture, fixtures, and equipment	574
Total real estate properties acquired	$ 34,501

Investment Activity - Schedul39

Investment Activity - Schedule of Change in Estimates of Purchase Price Allocation (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Kearny Mesa
Business Acquisition [Line Items]
Depreciation and amortization	$ 26
Net income attributable to common stockholders	(26)
Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Rental income	(127)
Depreciation and amortization	(79)
Net income attributable to common stockholders	(48)
Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Rental income	(127)
Depreciation and amortization	(53)
Net income attributable to common stockholders	$ (74)

Investment Activity - Adjustm40

Investment Activity - Adjustments to Kearny Mesa - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
Kearny Mesa
Business Acquisition [Line Items]
Reduction of depreciation expense related to earn-out assets	$ 0.2

Investment Activity - Summary o

Investment Activity - Summary of Purchase Price Allocations for Real Estate Investment Activity (Details) - 2015 Real Estate Acquisitions $ in Thousands	Dec. 31, 2015USD ($)
Business Acquisition [Line Items]
Land	$ 32,975
Buildings and improvements	356,207
Intangible lease assets	103
Furniture, fixtures, and equipment	2,401
Total real estate properties acquired	391,686
Foreclosed mortgage note receivable	(50,000)
Conversion of mortgage note receivable	(18,000)
Kearny Mesa earn-out	(10,000)
Total cash paid	$ 313,686

Investment Activity - 2015 Real

Investment Activity - 2015 Real Estate Acquisitions - Additional Information (Details) $ in Thousands	Oct. 02, 2015USD ($)	Jul. 30, 2015USD ($)ft²BedFacilityProperty	Mar. 31, 2015USD ($)ft²BedFacility	Feb. 20, 2015USD ($)Bed	Feb. 03, 2015USD ($)ft²	Dec. 31, 2016USD ($)FacilityProperty	Dec. 31, 2015USD ($)Property	Oct. 01, 2015Bed	Dec. 29, 2014USD ($)
Investment Activity [Line Items]
Other assets, net						$ 31,507	$ 27,603
Number of real estate properties | Property						24	24
Mortgage note receivable							$ 18,000
CALIFORNIA
Investment Activity [Line Items]
Number of real estate properties | Property						7	7
Texas SNF Portfolio
Investment Activity [Line Items]
Aggregate purchase price						$ 12,000
Vibra Rehabilitation Hospital of Amarillo
Investment Activity [Line Items]
Aggregate purchase price	$ 19,400
Number of inpatient bed | Bed								44
Mortgage note receivable	$ 18,000
Purchase price determination						The purchase price was determined by dividing the facility’s trailing 12-month earnings before interest, taxes, depreciation, amortization and rent expense (“EBITDAR”) of the facility and a 1.5 times rent coverage at an initial lease rate of 8.75%, which was specified in the purchase option.
Rent coverage on initial lease rate	8.75%
Additional cash expenditure	$ 1,400
Interest income mortgage note	$ 200
Ownership percentage by parent								100.00%
Term on mortgage loan						15-year term and three five-year extension options
Real Estate Investment
Investment Activity [Line Items]
Aggregate purchase price		$ 133,400
Area of real estate property | ft²		339,733
Transaction costs capitalized		$ 100
Initial term of lease		15 years
Number of skilled nursing facilities acquired | Facility		9				10
Number of licensed beds | Bed		1,142
Number of real estate properties | Property		9
Real Estate Investment | Life Generations Portfolio
Investment Activity [Line Items]
Aggregate purchase price			$ 80,000
Area of real estate property | ft²			154,199
Number of skilled nursing facilities acquired | Facility			4
Number of assisted living facility acquired | Facility			1
Number of licensed beds | Bed			429
Real Estate Investment | Lakeway Hospital
Investment Activity [Line Items]
Cash consideration					$ 25,000
Aggregate purchase price					$ 75,000
Area of real estate property | ft²					270,512
Notes receivable acquired									$ 50,000
Outstanding principle balance of notes receivable acquired									$ 163,900
Transaction costs capitalized					$ 100
Ground lease expiration date						Oct. 1, 2061
Ground lease expiration date, extension options						two ten-year extension options
Annual base rent					$ 200
Percentage points added to prior year's base rent					3.00%
Real Estate Investment | Mira Vista Court
Investment Activity [Line Items]
Aggregate purchase price				$ 16,000
Number of bed skilled nursing facility | Bed				142
Percentage of leased property				100.00%
Initial term of lease				12 years
Lease expiration						2027-02
Real Estate Investment | Kearny Mesa | Life Generations Portfolio
Investment Activity [Line Items]
Aggregate purchase price			$ 15,000
Transaction costs capitalized			$ 1,700
Percentage of leased property			100.00%
Initial term of lease			15 years
Number of licensed beds | Bed			96
Earn-out liability			$ 10,000
Real Estate Investment | Kearny Mesa | Life Generations Portfolio | CALIFORNIA
Investment Activity [Line Items]
Area of real estate property | ft²			26,950
Real Estate Investment | Mountains' Edge Hospital
Investment Activity [Line Items]
Aggregate purchase price			$ 35,400
Area of real estate property | ft²			72,140
Transaction costs capitalized			$ 100
Percentage of leased property			100.00%
Initial term of lease			15 years
Other assets, gross			$ 6,000
Other assets, net			$ 5,300
Real Estate Investment | Texas SNF Portfolio
Investment Activity [Line Items]
Cash consideration		$ 11,600
Aggregate purchase price		$ 145,000
Area of real estate property | ft²		32,391
Number of licensed beds | Bed		117
Business acquisition,date		Oct. 2, 2015

Investment Activity - 2017 Mort

Investment Activity - 2017 Mortgage Note Receivable Funding - Additional Information (Details) $ in Thousands	Jan. 30, 2017USD ($)ft²Room	Dec. 31, 2014USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Investment Activity [Line Items]
Investment | $			$ 494,874	$ 504,853
Mortgage loan on real estate, newly originated interest-only loan | $		$ 78,000
Subsequent Event | Acute Care Surgical Hospital
Investment Activity [Line Items]
Investment | $	$ 12,500
Mortgage loan on real estate, newly originated interest-only loan | $	$ 12,500
Interest-only loan interest rate	9.60%
Area of hospital building | ft²	23,300
Number of operating rooms | Room	4
Number of special procedure rooms | Room	2
Number of inpatient rooms | Room	4
Number of full-size extended recovery rooms | Room	4

Investment Activity - Texas SNF

Investment Activity - Texas SNF Portfolio Contingent Consideration and Additional Rent - Additional Information (Details)	Feb. 27, 2017USD ($)	Dec. 31, 2016USD ($)Bed
Texas
Business Acquisition [Line Items]
Aggregate purchase price		$ 145,000,000
Percentage of aggregate lease on rent		20.00%
Number of facilities | Bed		4
Number of licensed beds | Bed		412
Percentage of aggregate lease on rent		10.00%
Texas SNF Portfolio
Business Acquisition [Line Items]
Aggregate purchase price		$ 12,000,000
Refundable contingent consideration		$ 3,000,000
Percentage of refundable contingent consideration		3.00%
Texas SNF Portfolio | Subsequent Event
Business Acquisition [Line Items]
Refundable contingent consideration earned	$ 0

Investment Activity - Schedul45

Investment Activity - Schedule of Future Minimum Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2016USD ($)
Leases Operating [Abstract]
2,017	$ 50,577
2,018	49,741
2,019	50,241
2,020	50,972
2,021	51,773
Thereafter	509,139
Total	$ 762,443

Investment Activity - Schedul46

Investment Activity - Schedule of Tenant Concentration of Revenue (Details) - Credit Concentration Risk - Sales Revenue, Net		8 Months Ended	12 Months Ended
		Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Gruene Pointe Holdings
Concentration Risk [Line Items]
Concentration risk percentage			28.90%	13.00%
Life Generations Healthcare
Concentration Risk [Line Items]
Concentration risk percentage			17.50%	13.10%
Fundamental Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		28.40%	16.70%	16.40%
Vibra Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		60.40%	15.50%	18.20%
LRMC
Concentration Risk [Line Items]
Concentration risk percentage	[1]			34.20%
[1]	LRMC was the prior tenant at Lakeway Hospital, in which the Company owns a 51% interest through the Lakeway Partnership. The lease with LRMC was terminated on September 1, 2016. See “Lakeway Hospital Operator Change” above for further discussion.

Investment Activity - Schedul47

Investment Activity - Schedule of Tenant Concentration of Revenue (Parenthetical) (Details)	Dec. 31, 2016
LRMC
Concentration Risk [Line Items]
Ownership percentage by parent	51.00%

Investment Activity - Schedul48

Investment Activity - Schedule of Geographic Concentration of Properties (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Property	Dec. 31, 2015USD ($)Property
Concentration Risk [Line Items]
Number of real estate properties | Property	24	24
Gross Investment | $	$ 494,874	$ 504,853
Percentage of total Estate Property Investments	100.00%	100.00%
Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	100.00%	100.00%
Texas
Concentration Risk [Line Items]
Number of real estate properties | Property	14	14
Gross Investment | $	$ 270,725	$ 270,723
Percentage of total Estate Property Investments	54.70%	53.60%
Texas | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	57.60%	59.30%
CALIFORNIA
Concentration Risk [Line Items]
Number of real estate properties | Property	7	7
Gross Investment | $	$ 154,727	$ 164,708
Percentage of total Estate Property Investments	31.30%	32.60%
CALIFORNIA | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	28.70%	26.50%
Nevada
Concentration Risk [Line Items]
Number of real estate properties | Property	2	2
Gross Investment | $	$ 49,422	$ 49,422
Percentage of total Estate Property Investments	10.00%	9.80%
Nevada | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	9.70%	9.50%
South Carolina
Concentration Risk [Line Items]
Number of real estate properties | Property	1	1
Gross Investment | $	$ 20,000	$ 20,000
Percentage of total Estate Property Investments	4.00%	4.00%
South Carolina | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	4.00%	4.70%

Real Estate Intangibles- Summar

Real Estate Intangibles- Summary of Carrying Amount of Real Estate Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 11,387	$ 3,441
Real Estate
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	11,387	3,441
Accumulated Amortization	(1,986)	(751)
Net Intangibles	$ 9,401	2,690
Weighted Average Life (Years)	12 years 8 months 12 days
Real Estate | Above-Market Lease Intangible
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 7,636
Accumulated Amortization	(637)
Net Intangibles	$ 6,999
Weighted Average Life (Years)	13 years 9 months 18 days
Real Estate | In-place Leases
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 2,406	2,096
Accumulated Amortization	(932)	(512)
Net Intangibles	$ 1,474	1,584
Weighted Average Life (Years)	9 years 4 months 24 days
Real Estate | Leasing Commissions
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 1,294	1,294
Accumulated Amortization	(397)	(228)
Net Intangibles	$ 897	1,066
Weighted Average Life (Years)	10 years 1 month 6 days
Real Estate | Legal/Marketing Fees
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 51	51
Accumulated Amortization	(20)	(11)
Net Intangibles	$ 31	$ 40
Weighted Average Life (Years)	9 years 1 month 6 days

Real Estate Intangible - Additi

Real Estate Intangible - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Real Estate
Finite Lived Intangible Assets [Line Items]
Amortization expense on intangible assets	$ 1.2	$ 0.6

Real Estate Intangibles - Expec

Real Estate Intangibles - Expected Amortization of Existing Real Estate Intangible Assets (Details) - Real Estate - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
2,017	$ 1,078
2,018	707
2,019	687
2,020	687
2,021	686
Thereafter	5,556
Net Intangibles	$ 9,401	$ 2,690

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Feb. 27, 2017	Feb. 10, 2017	Nov. 01, 2016	May 17, 2016	Jul. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 09, 2017	Dec. 30, 2016	May 31, 2016	May 16, 2016	Sep. 30, 2015	Jul. 29, 2015
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity						$ 257,600,000				$ 221,300,000
Line of credit facility outstanding amount						$ 144,000,000	$ 247,400,000
Debt instrument description						The revolving credit facility has one 12-month extension option, subject to certain conditions, including the payment of a 0.15% extension fee.
Debt instrument, extension fee						0.15%
Subsequent Event
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 425,000,000							$ 300,000,000
Commitment fees paid		2,700,000
Deferred financing costs, net		800,000
Line of credit facility outstanding amount	$ 156,500,000
Debt instrument collateral amount		1,000,000,000
Line of credit facility minimum borrowing base		$ 500,000,000
Interest rate swap agreement effective date		Apr. 10, 2017
Term Loan | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 125,000,000
Line of credit facility maturity date		2022-02
Accordion Feature Debt | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 700,000,000
Maximum | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility leverage ratio		50.00%
LIBOR | Minimum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate		1.75%
LIBOR | Maximum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate		3.00%
Base Rate | Minimum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate		0.75%
Base Rate | Maximum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate		2.00%
Secured Revolving Credit facility
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity				$ 300,000,000	$ 375,000,000							$ 375,000,000		$ 200,000,000
Commitment fees paid				$ 1,400,000	$ 2,200,000
Unamortized deferred financing costs											$ 300,000		$ 100,000
Line of credit facility maturity date						2017-11
Deferred financing costs, gross						$ 2,500,000	3,700,000
Deferred financing costs, net						1,500,000	2,500,000
Amortization expense of deferred financing costs						$ 2,500,000	$ 2,100,000	$ 200,000
Debt instrument, weighted average interest						2.70%	3.50%
Line of credit facility outstanding amount						$ 144,000,000	$ 247,400,000
Secured Revolving Credit facility | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 300,000,000
Commitment fees paid		$ 1,900,000
Line of credit facility maturity date		2021-02
Line of credit facility outstanding amount	$ 31,500,000
Line of credit facility interest rate	2.52%
Secured Revolving Credit facility | Minimum
Debt Instrument [Line Items]
Line of credit facility unused fees						0.25%
Line of credit facility usage fees						50.00%
Secured Revolving Credit facility | Maximum
Debt Instrument [Line Items]
Line of credit facility unused fees						0.35%
Line of credit facility usage fees						50.00%
Secured Revolving Credit facility | LIBOR | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate	1.75%	1.84%
Secured Revolving Credit facility | LIBOR | Minimum
Debt Instrument [Line Items]
Debt instrument interest rate			2.00%	2.75%	2.75%
Secured Revolving Credit facility | LIBOR | Maximum
Debt Instrument [Line Items]
Debt instrument interest rate			2.50%	3.75%	3.75%
Secured Revolving Credit facility | Base Rate | Minimum
Debt Instrument [Line Items]
Debt instrument interest rate			1.00%	1.75%	2.00%
Secured Revolving Credit facility | Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument interest rate			1.50%	2.75%	2.50%

Other Assets - Summary of Other

Other Assets - Summary of Other Assets on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other Assets
Other Assets	$ 31,507	$ 27,603
Other Assets
Other Assets
Surety bond deposit	9,412
Tenant allowances and lease incentives, net	8,624	6,913
Straight-line rent receivable	6,470	9,917
Prepaid assets and deposits	3,174	1,009
Deferred financing costs, net	1,465	2,521
Pre-acquisition costs	883	939
Interest and accounts receivable	561	1,729
Note receivable	450	500
Restricted cash	262	146
Corporate property, net	$ 206	270
Capitalized pre-offering costs		$ 3,659

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - Other Assets $ in Thousands	Dec. 31, 2016USD ($)
Other Assets
Surety bond deposit	$ 9,412
Lakeway Regional Medical Center
Other Assets
Surety bond deposit	$ 9,412

Incentive Plan - Additional Inf

Incentive Plan - Additional Information (Details) $ in Millions	Jan. 01, 2017USD ($)anniversaryshares	Dec. 30, 2016	Dec. 31, 2015	Dec. 31, 2014shares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015shares
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting description					The awards generally cliff vest over three years or vest ratably over three years from the date of grant.
Awards vesting period					3 years
Shares granted				129,555	88,915	158,396
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of units granted					100.00%
Awards measurement period		3 years	3 years
Expected service periods					3 years
Unrecognized cost from stock-based awards | $					$ 5.6
Weighted average recognition period					2 years 1 month 6 days
Shares granted				158,927	216,750	200,098
Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of units granted		0.00%	0.00%
Restricted Stock Units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of units granted		150.00%	100.00%
2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized					1,356,723
Shares available for future issuance					295,707
2017 Grant | Restricted Stock | Non-Employee Directors | Subsequent Event
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting description	vest ratably on each of the first three anniversaries of the date of grant
Shares granted	33,780
Number of vesting anniversaries | anniversary	3
Total value of awards | $	$ 0.4

Incentive Plan - Summary of Sto

Incentive Plan - Summary of Stock-Based Award Activity (Details) - $ / shares	8 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Restricted Stock Awards
Number of Shares
Outstanding at beginning of the period		280,080	129,555
Granted	129,555	88,915	158,396
Vested		(16,202)	(7,871)
Outstanding at end of the period	129,555	352,793	280,080
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of the period		$ 15.49	$ 15
Granted	$ 15	11.83	15.86
Vested		15.16	15
Outstanding at end of the period	$ 15	$ 14.57	$ 15.49
RSU Awards
Number of Shares
Outstanding at beginning of the period		359,025	158,927
Granted	158,927	216,750	200,098
Outstanding at end of the period	158,927	575,775	359,025
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of the period		$ 7.91	$ 6.53
Granted	$ 6.53	9.50	9
Outstanding at end of the period	$ 6.53	$ 8.51	$ 7.91

Incentive Plan - Summary of Com

Incentive Plan - Summary of Compensation Expense Related to Share-based Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	$ 2,556	$ 1,795	$ 443
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	1,606	1,192	299
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	$ 950	$ 603	$ 144

Commitment and Contingencies -

Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 01, 2016	Feb. 02, 2016
Surety Bond
Loss Contingencies [Line Items]
Interest and other income	$ 0.2
Surety Bond | Lakeway Regional Medical Center
Loss Contingencies [Line Items]
Surety bond deposit received				$ 9.4	$ 9.4
Corporate Office Lease
Loss Contingencies [Line Items]
Operating lease expiration period	2,020
Percentage increase on operating lease	3.00%
Operating leases rent expense	$ 0.5	$ 0.5	$ 0.1
Ground Lease
Loss Contingencies [Line Items]
Operating lease expiration period	2,081
Percentage increase on operating lease	2.00%

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2016USD ($)
Commitments And Contingencies Disclosure [Abstract]
2,017	$ 334
2,018	342
2,019	351
2,020	203
2,021	176
Thereafter	19,979
Total	$ 21,385

Equity - Additional Information

Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands

Feb. 27, 2017

Jan. 03, 2017

Oct. 04, 2016

Apr. 02, 2015

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Dec. 31, 2016

Dec. 31, 2015

Mar. 11, 2015

Class Of Stock [Line Items]

Preferred stock shares sold

125,000

0

125,000

Dividends declared per common share

$ 0.21

$ 0.20

$ 0.63

$ 0.85

Dividend payment date

Jan. 14, 2016

Dividend record date

Dec. 31, 2015

Investment in subsidiary by noncontrolling interest

$ 1,000

Lakeway mortgage note receivable foreclosure

50,000

Distributions to noncontrolling interest

$ 2,307

$ 482

Subsequent Event

Class Of Stock [Line Items]

Dividends declared per common share

$ 0.21

Common Stock

Class Of Stock [Line Items]

Dividends declared per common share

$ 0.21

$ 0.21

$ 0.21

$ 0.30

[1]

$ 0.21

$ 0.17

$ 0.17

$ 0.63

$ 0.85

Dividend declaration date

Sep. 15, 2016

Aug. 3, 2016

Apr. 28, 2016

Dec. 9, 2015

[1]

Sep. 18, 2015

Aug. 13, 2015

Mar. 25, 2015

Dividend payment date

Oct. 4, 2016

Aug. 30, 2016

May 19, 2016

Jan. 14, 2016

[1]

Oct. 13, 2015

Sep. 9, 2015

Apr. 14, 2015

Dividend record date

Sep. 23, 2016

Aug. 17, 2016

May 10, 2016

Dec. 31, 2015

[1]

Sep. 30, 2015

Aug. 27, 2015

Apr. 2, 2015

Common Stock | Subsequent Event

Class Of Stock [Line Items]

Dividend declaration date

Jan. 3, 2017

Dividend payment date

Jan. 31, 2017

Dividend record date

Jan. 17, 2017

7.875% Series B Redeemable Cumulative Preferred Stock

Class Of Stock [Line Items]

Preferred stock dividend rate

7.875%

Liquidation preference per share

$ 1,000

7.875% Series B Redeemable Cumulative Preferred Stock | IPO

Class Of Stock [Line Items]

Preferred stock redemption amount

$ 131,300

Preferred stock special dividend redemption rate percentage

5.00%

Accrued and unpaid dividends

$ 900

Carter Validus | 7.875% Series B Redeemable Cumulative Preferred Stock

Class Of Stock [Line Items]

Preferred stock shares sold

125,000

Preferred stock dividend rate

7.875%

Liquidation preference per share

$ 1,000

$ 1,000

Preferred stock gross proceeds

$ 125,000

Lakeway Partnership

Class Of Stock [Line Items]

Cash contribution

$ 2,000

Ownership percentage by parent

51.00%

Equity method investment ownership percentage

49.00%

Investment in subsidiary by noncontrolling interest

$ 1,000

Lakeway mortgage note receivable foreclosure

50,000

Additional cash contribution to acquire real estate

$ 23,000

Intercompany Mortgage Loan, term

10 years

Interest-only loan interest rate

8.00%

Intercompany Mortgage Loan, amortization schedule

25 years

Intercompany Mortgage Loan, outstanding principal balance

$ 72,700

$ 71,800

$ 72,700

Lakeway Partnership | First Mortgage

Class Of Stock [Line Items]

Intercompany Mortgage Loan

$ 73,000

Lakeway Partnership | Subsequent Event

Class Of Stock [Line Items]

Distributions to noncontrolling interest

$ 500

[1]

Comprised of a regular dividend of $0.21 per share and an additional special dividend of $0.09 per share.

Equity - Schedule of Common Sto

Equity - Schedule of Common Stock Dividend (Details) - $ / shares	3 Months Ended								8 Months Ended	12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015		Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Class Of Stock [Line Items]
Quarterly Dividend				$ 0.21					$ 0.20	$ 0.63	$ 0.85
Date of Record										Dec. 31, 2015
Date Paid										Jan. 14, 2016
Common Stock
Class Of Stock [Line Items]
Quarterly Dividend	$ 0.21	$ 0.21	$ 0.21	$ 0.30	[1]	$ 0.21	$ 0.17	$ 0.17		$ 0.63	$ 0.85
Date of Declaration	Sep. 15, 2016	Aug. 3, 2016	Apr. 28, 2016	Dec. 9, 2015	[1]	Sep. 18, 2015	Aug. 13, 2015	Mar. 25, 2015
Date of Record	Sep. 23, 2016	Aug. 17, 2016	May 10, 2016	Dec. 31, 2015	[1]	Sep. 30, 2015	Aug. 27, 2015	Apr. 2, 2015
Date Paid	Oct. 4, 2016	Aug. 30, 2016	May 19, 2016	Jan. 14, 2016	[1]	Oct. 13, 2015	Sep. 9, 2015	Apr. 14, 2015
[1]	Comprised of a regular dividend of $0.21 per share and an additional special dividend of $0.09 per share.

Equity - Schedule of Common S62

Equity - Schedule of Common Stock Dividend (Parenthetical) (Details) - $ / shares	3 Months Ended	8 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Class Of Stock [Line Items]
Dividends declared per common share	$ 0.21	$ 0.20	$ 0.63	$ 0.85
Additional Special Dividend Declared
Class Of Stock [Line Items]
Dividends declared per common share	$ 0.09

Distributions - Federal Income

Distributions - Federal Income Tax Classification of Per Share Common Stock Distributions (Details) - $ / shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Distributions [Abstract]
Ordinary taxable distributions	$ 0.22	$ 0.68	$ 0.08
Return of capital	0.70
Total	$ 0.92	$ 0.68	$ 0.08

Distributions - Additional Info

Distributions - Additional Information (Details)	12 Months Ended
	Dec. 31, 2016
Distributions [Abstract]
Percentage of distribution from taxable income in order to qualify REIT	90.00%
Dividend payment date	Jan. 14, 2016
Date of Record	Dec. 31, 2015

Earnings Per Share - Computatio

Earnings Per Share - Computation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended									5 Months Ended		8 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 5,376	$ 4,734	$ (3,645)	$ 4,851	$ 5,364	$ 5,228	$ 5,401	$ 737		$ 23		$ 23	$ 11,316	$ 16,730
Less: Net income attributable to noncontrolling interest	(931)	(821)	2,841	(1,355)	(1,373)	(1,339)	(1,332)	15					(266)	(4,029)
Less: Preferred stock dividends	(6,366)	(2,464)	(2,465)	(2,465)	(2,465)	(2,465)	(2,465)	(440)					(13,760)	(7,835)
Net income (loss) attributable to common stockholders	$ (1,921)	$ 1,449	$ (3,269)	$ 1,031	$ 1,526	$ 1,424	$ 1,604	$ 312	$ 480	23	$ (457)	$ 23	(2,710)	4,866
Less: Allocation to participating securities										(26)			(182)	(216)
Net income (loss) available to common stockholders										$ (3)			$ (2,892)	$ 4,650
Weighted-average common shares- basic and diluted										10,918		10,918	15,838	10,948
Earnings (loss) per common share- basic and diluted	$ (0.06)	$ 0.12	$ (0.30)	$ 0.09	$ 0.13	$ 0.12	$ 0.14	$ 0.03	$ 0.04	$ 0	$ (0.04)	$ 0	$ (0.18)	$ 0.42

Fair Value of Financial Instr66

Fair Value of Financial Instruments - Additional information (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of mortgage note receivable	$ 10	$ 10
Estimated Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of mortgage note receivable	$ 10	$ 10.1

Selected Interim Financial Da67

Selected Interim Financial Data (unaudited) - Summary of Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended									5 Months Ended		8 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 14,010	$ 13,845	$ 6,593	$ 14,848	$ 15,337	$ 13,238	$ 10,924	$ 4,939	$ 3,472		$ 1,975	$ 5,447	$ 49,296	$ 44,438
Interest expense	(1,740)	(2,792)	(3,226)	(3,125)	(3,006)	(2,341)	(1,026)	(790)	(317)			(317)	(10,883)	(7,163)
Net income (loss)	5,376	4,734	(3,645)	4,851	5,364	5,228	5,401	737		$ 23		23	11,316	16,730
Preferred stock dividends	(6,366)	(2,464)	(2,465)	(2,465)	(2,465)	(2,465)	(2,465)	(440)					(13,760)	(7,835)
Net (income) loss attributable to noncontrolling interest	(931)	(821)	2,841	(1,355)	(1,373)	(1,339)	(1,332)	15					(266)	(4,029)
Net income (loss) attributable to common stockholders	$ (1,921)	$ 1,449	$ (3,269)	$ 1,031	$ 1,526	$ 1,424	$ 1,604	$ 312	$ 480	$ 23	$ (457)	$ 23	$ (2,710)	$ 4,866
Net income (loss) attributable to common stockholders per share
Basic and diluted	$ (0.06)	$ 0.12	$ (0.30)	$ 0.09	$ 0.13	$ 0.12	$ 0.14	$ 0.03	$ 0.04	$ 0	$ (0.04)	$ 0	$ (0.18)	$ 0.42

Schedule III Real Estate and 68

Schedule III Real Estate and Accumulated Depreciation (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Property	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Real Estate And Accumulated Depreciation [Line Items]
Initial Cost to Company, Land	$ 39,581
Initial Cost to Company, Building and improvements and intangible lease assets	452,297
Initial Cost to Company, Furniture, fixtures, and equipment	2,975
Cost Capitalized Subsequent to Acquisition	21
Gross Amount at Which Carried at Close of Period, Land	39,584
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	452,314
Gross Amount at Which Carried at Close of Period, Furniture, fixtures, and equipment	2,976
Gross Amount at Which Carried at Close of Period, Total	494,874	$ 504,853	$ 113,168
Accumulated Depreciation	$ (26,052)	$ (11,172)	$ (1,268)
Texas SNF Portfolio | TX | SNF
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	10
Initial Cost to Company, Land	$ 4,325
Initial Cost to Company, Building and improvements and intangible lease assets	140,815
Cost Capitalized Subsequent to Acquisition	2
Gross Amount at Which Carried at Close of Period, Land	4,325
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	140,817
Gross Amount at Which Carried at Close of Period, Total	145,142
Accumulated Depreciation	$ (6,216)
Date Acquired	2,015
Texas SNF Portfolio | TX | Minimum | SNF
Real Estate And Accumulated Depreciation [Line Items]
Date of Construction	1,963
Texas SNF Portfolio | TX | Maximum | SNF
Real Estate And Accumulated Depreciation [Line Items]
Date of Construction	2,013
Life Generations Portfolio | CA | SNF/ALF
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	6
Initial Cost to Company, Land	$ 18,338
Initial Cost to Company, Building and improvements and intangible lease assets	75,592
Initial Cost to Company, Furniture, fixtures, and equipment	2,748
Cost Capitalized Subsequent to Acquisition	19
Gross Amount at Which Carried at Close of Period, Land	18,341
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	75,607
Gross Amount at Which Carried at Close of Period, Furniture, fixtures, and equipment	2,749
Gross Amount at Which Carried at Close of Period, Total	96,697
Accumulated Depreciation	$ (5,626)
Date Acquired	2,015
Life Generations Portfolio | CA | Minimum | SNF/ALF
Real Estate And Accumulated Depreciation [Line Items]
Date of Construction	1,966
Life Generations Portfolio | CA | Maximum | SNF/ALF
Real Estate And Accumulated Depreciation [Line Items]
Date of Construction	1,992
Lakeway Hospital | TX | Acute Care Hospital
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 5,181
Initial Cost to Company, Building and improvements and intangible lease assets	69,875
Gross Amount at Which Carried at Close of Period, Land	5,181
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	69,875
Gross Amount at Which Carried at Close of Period, Total	75,056
Accumulated Depreciation	$ (2,881)
Date of Construction	2,012
Date Acquired	2,015
Kentfield Rehabilitation & Specialty Hospital | CA | LTACH
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 6,204
Initial Cost to Company, Building and improvements and intangible lease assets	51,826
Gross Amount at Which Carried at Close of Period, Land	6,204
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	51,826
Gross Amount at Which Carried at Close of Period, Total	58,030
Accumulated Depreciation	$ (3,510)
Date of Construction	1,962
Date Acquired	2,014
Mountains' Edge Hospital | NV | Acute Care Hospital
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 2,296
Initial Cost to Company, Building and improvements and intangible lease assets	27,116
Gross Amount at Which Carried at Close of Period, Land	2,296
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	27,116
Gross Amount at Which Carried at Close of Period, Total	29,412
Accumulated Depreciation	$ (1,071)
Date of Construction	2,015
Date Acquired	2,015
Horizon Specialty Hospital of Henderson | NV | LTACH
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 733
Initial Cost to Company, Building and improvements and intangible lease assets	19,277
Gross Amount at Which Carried at Close of Period, Land	733
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	19,277
Gross Amount at Which Carried at Close of Period, Total	20,010
Accumulated Depreciation	$ (1,300)
Date of Construction	2,012
Date Acquired	2,014
Magnolia Place of Spartanburg | SC | SNF
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 170
Initial Cost to Company, Building and improvements and intangible lease assets	19,830
Gross Amount at Which Carried at Close of Period, Land	170
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	19,830
Gross Amount at Which Carried at Close of Period, Total	20,000
Accumulated Depreciation	$ (1,284)
Date of Construction	1,989
Date Acquired	2,014
Vibra Rehabilitation Hospital of Amarillo | TX | IRF
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 991
Initial Cost to Company, Building and improvements and intangible lease assets	18,181
Initial Cost to Company, Furniture, fixtures, and equipment	227
Gross Amount at Which Carried at Close of Period, Land	991
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	18,181
Gross Amount at Which Carried at Close of Period, Furniture, fixtures, and equipment	227
Gross Amount at Which Carried at Close of Period, Total	19,399
Accumulated Depreciation	$ (1,183)
Date of Construction	1,990
Date Acquired	2,015
Mira Vista Court | TX | SNF
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Land	$ 1,343
Initial Cost to Company, Building and improvements and intangible lease assets	14,657
Gross Amount at Which Carried at Close of Period, Land	1,343
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	14,657
Gross Amount at Which Carried at Close of Period, Total	16,000
Accumulated Depreciation	$ (858)
Date of Construction	2,013
Date Acquired	2,015
North Brownsville Medical Plaza | TX | MOB
Real Estate And Accumulated Depreciation [Line Items]
Number of Properties | Property	1
Initial Cost to Company, Building and improvements and intangible lease assets	$ 15,128
Gross Amount at Which Carried at Close of Period, Building and improvements and intangible lease assets	15,128
Gross Amount at Which Carried at Close of Period, Total	15,128
Accumulated Depreciation	$ (2,123)
Date of Construction	2,007
Date Acquired	2,014

Schedule III Real Estate and 69

Schedule III Real Estate and Accumulated Depreciation - Changes in Total Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands	8 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Cost
Balance at beginning of period		$ 504,853	$ 113,168
Acquisitions	$ 113,168		323,685
Capitalized costs		21
Foreclosure of mortgage note			50,000
Conversion of mortgage note			18,000
Elimination of earn-out payment		(10,000)
Balance at end of period	113,168	494,874	504,853
Accumulated Depreciation
Balance at beginning of period		11,172	1,268
Depreciation	1,268	14,880	9,904
Balance at end of period	$ 1,268	$ 26,052	$ 11,172

Schedule III Real Estate and 70

Schedule III Real Estate and Accumulated Depreciation (Parenthetical) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
Real Estate And Accumulated Depreciation [Line Items]
Aggregate tax value of real estate assets for federal income tax purposes	$ 475
Minimum | Lease Intangibles
Real Estate And Accumulated Depreciation [Line Items]
Estimated useful lives of assets	2 years 8 months 12 days
Maximum | Lease Intangibles
Real Estate And Accumulated Depreciation [Line Items]
Estimated useful lives of assets	15 years
Building and Improvements | Minimum
Real Estate And Accumulated Depreciation [Line Items]
Estimated useful lives of assets	2 years
Building and Improvements | Maximum
Real Estate And Accumulated Depreciation [Line Items]
Estimated useful lives of assets	50 years

Schedule IV Mortgage Loans Re71

Schedule IV Mortgage Loans Receivable on Real Estate (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Mortgage Loans On Real Estate [Line Items]
Mortgage Loans on Real Estate		$ 10,000
Mortgage Loans on Real Estate, outstanding principal balance		$ 10,000	[1]	$ 10,000	$ 78,000
First Mortgage | Springfield, Massachusetts | Rehabilitation Hospital
Mortgage Loans On Real Estate [Line Items]
Interest rate		9.00%
Final maturity date		Jul. 31, 2034
Mortgage Loans on Real Estate		$ 10,000
Mortgage Loans on Real Estate, outstanding principal balance	[1]	$ 10,000
[1]	Carrying amount of mortgages represents the contractual amount due under the mortgage note as of the date of this schedule IV and excludes any other fees or costs associated with the mortgage notes and their origination. The aggregate cost for federal income tax purposes as of December 31, 2016 is estimated to be $10.0 million.

Schedule IV Mortgage Loans Re72

Schedule IV Mortgage Loans Receivable on Real Estate (Parenthetical) (Details) - USD ($) $ in Thousands	Oct. 02, 2015	Feb. 03, 2015	Dec. 31, 2016	Dec. 31, 2015
Mortgage Loans On Real Estate [Line Items]
Aggregate cost for federal income tax purposes			$ 10,000
Mortgage notes receivable, net			9,915	$ 9,909
Vibra Healthcare, LLC or Vibra Healthcare II, LLC | Minimum
Mortgage Loans On Real Estate [Line Items]
Sale-leaseback transaction, net			$ 25,000
Vibra Rehabilitation Hospital of Amarillo
Mortgage Loans On Real Estate [Line Items]
Aggregate purchase price	$ 19,400
Mortgage notes receivable, net	$ 18,000
Springfield, Massachusetts
Mortgage Loans On Real Estate [Line Items]
Loans, Interest-only period			5 years
Loans, Amortization period			15 years
Texas
Mortgage Loans On Real Estate [Line Items]
Aggregate purchase price			$ 145,000
Texas | Lakeway Hospital | Acute Care Hospital
Mortgage Loans On Real Estate [Line Items]
Business acquisitions, date of acquisition			Feb. 3, 2015
Cash consideration		$ 25,000
Aggregate purchase price		$ 75,000
Notes receivable acquired			$ 50,000
Outstanding principle balance of notes receivable acquired			$ 163,900

Schedule IV Mortgage Loans Re73

Schedule IV Mortgage Loans Receivable on Real Estate - Changes in Mortgage Loans (Details) - USD ($) $ in Thousands		8 Months Ended	12 Months Ended
		Dec. 31, 2014	Dec. 31, 2016		Dec. 31, 2015
Mortgage Loans On Real Estate [Abstract]
Balance at beginning of period			$ 10,000		$ 78,000
Additions during year:
Mortgage loan on real estate, newly originated interest-only loan		$ 78,000
Mortgage loans on real estate period increase		78,000
Deductions during year:
Foreclosure of mortgage note			0		(50,000)	[1]
Conversion to fee simple ownership	[2]				(18,000)
Mortgage loans on real estate period decrease					(68,000)
Balance at end of period		$ 78,000	$ 10,000	[3]	$ 10,000
[1]	On February 3, 2015, the Company acquired an acute care hospital in Lakeway, Texas ("Lakeway Hospital"), through a negotiated, non-judicial foreclosure and payment of an additional $25.0 million in cash consideration, for a total investment of $75.0 million. The Company originally acquired a mortgage note receivable for $50.0 million on December 29, 2014, which had an outstanding principal balance of approximately $163.9 million and was secured by a first mortgage lien on Lakeway Hospital. The operator of the facility defaulted on debt service payments under the note in 2013, and the U.S. Department of Housing and Urban Development held an auction in December 2014 through which the Company acquired the mortgage note.
[2]	On October 1, 2015, the Company completed the acquisition of Vibra Rehabilitation of Amarillo for a purchase price of $19.4 million, pursuant to the exercise of its exclusive right to purchase the property contained in the Company's $18.0 million mortgage note receivable. The $18.0 million in principal outstanding on the mortgage note receivable was applied to the purchase price.
[3]	Carrying amount of mortgages represents the contractual amount due under the mortgage note as of the date of this schedule IV and excludes any other fees or costs associated with the mortgage notes and their origination. The aggregate cost for federal income tax purposes as of December 31, 2016 is estimated to be $10.0 million.