Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 03, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Community Healthcare Trust Inc | |
Entity Central Index Key | 1,631,569 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,179,799 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Real estate properties | ||
Land and land improvements | $ 46,066 | $ 44,419 |
Buildings, improvements, and lease intangibles | 356,530 | 343,955 |
Personal property | 116 | 112 |
Total real estate properties | 402,712 | 388,486 |
Less accumulated depreciation | (41,052) | (36,136) |
Total real estate properties, net | 361,660 | 352,350 |
Cash and cash equivalents | 2,285 | 2,130 |
Mortgage note receivable, net | 10,633 | 10,633 |
Other assets, net | 25,210 | 20,653 |
Total assets | 399,788 | 385,766 |
Liabilities | ||
Debt, net | 111,385 | 93,353 |
Accounts payable and accrued liabilities | 3,806 | 4,056 |
Other liabilities | 4,987 | 4,983 |
Total liabilities | 120,178 | 102,392 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 450,000,000 shares authorized; 18,179,799 and 18,085,798 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 182 | 181 |
Additional paid-in capital | 324,918 | 324,303 |
Cumulative net income | 6,647 | 4,775 |
Accumulated other comprehensive income | 1,232 | 258 |
Cumulative dividends | (53,369) | (46,143) |
Total stockholders’ equity | 279,610 | 283,374 |
Total liabilities and stockholders' equity | $ 399,788 | $ 385,766 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 450,000,000 | 450,000,000 |
Common Stock, shares issued | 18,179,799 | 18,085,798 |
Common Stock, shares outstanding | 18,179,799 | 18,085,798 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Rental income | $ 9,635 | $ 6,618 |
Tenant reimbursements | 1,440 | 1,128 |
Mortgage interest | 0 | 261 |
Other operating | 354 | 0 |
Revenues | 11,429 | 8,007 |
EXPENSES | ||
Property operating | 2,364 | 1,738 |
General and administrative | 1,193 | 770 |
Depreciation and amortization | 4,916 | 3,924 |
Bad debts | 0 | 67 |
Expenses | 8,473 | 6,499 |
OTHER INCOME (EXPENSE) | ||
Interest expense | (1,268) | (597) |
Interest and other income, net | 184 | 2 |
Other Income (Expense) | (1,084) | (595) |
NET INCOME | $ 1,872 | $ 913 |
NET INCOME PER COMMON SHARE: | ||
Net income per common share – Basic (in dollars per share) | $ 0.09 | $ 0.07 |
Net income per common share – Diluted (in dollars per share) | $ 0.09 | $ 0.07 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC (in shares) | 17,573,683 | 12,686,183 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED (in shares) | 17,573,683 | 12,819,496 |
DIVIDENDS DECLARED, PER COMMON SHARE, DURING THE PERIOD (in dollars per share) | $ 0.3975 | $ 0.3875 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 1,872 | $ 913 |
Other comprehensive income (loss): | ||
Increase (decrease) in fair value of cash flow hedges | 906 | (158) |
Reclassification for amounts recognized as interest expense | 68 | 6 |
Total other comprehensive income (loss) | 974 | (152) |
COMPREHENSIVE INCOME | $ 2,846 | $ 761 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Cumulative Net Income [Member] | Accumulated Other Comprehensive Income [Member] | Cumulative Dividends [Member] |
Beginning Balance at Dec. 31, 2017 | $ 283,374 | $ 0 | $ 181 | $ 324,303 | $ 4,775 | $ 258 | $ (46,143) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 616 | 1 | 615 | ||||
Unrecognized gain on cash flow hedges | 906 | 906 | |||||
Reclassification adjustment for losses included in net income (interest expense) | 68 | 68 | |||||
Net income | 1,872 | 1,872 | |||||
Dividends to common stockholders ($0.3975 per share) | (7,226) | (7,226) | |||||
Ending Balance at Mar. 31, 2018 | $ 279,610 | $ 0 | $ 182 | $ 324,918 | $ 6,647 | $ 1,232 | $ (53,369) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Cumulative Dividends [Member] | |
Dividends to common stockholders, per share (in dollars per share) | $ 0.3975 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 1,872 | $ 913 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,133 | 3,998 |
Stock-based compensation | 616 | 318 |
Straight-line rent receivable | (415) | (265) |
Provision for bad debts, net of recoveries | 0 | 67 |
Reduction in contingent purchase price | 0 | (5) |
Deferred income tax benefit | (132) | 0 |
Changes in operating assets and liabilities: | ||
Other assets | (696) | 32 |
Accounts payable and accrued liabilities | (309) | (578) |
Other liabilities | (121) | 75 |
Net cash provided by operating activities | 5,948 | 4,555 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | (12,721) | (29,311) |
Acquisitions of notes receivable | (2,201) | 0 |
Proceeds from the repayment of notes receivable | 17 | 140 |
Capital expenditures on existing real estate properties | (1,444) | (64) |
Net cash used in investing activities | (16,349) | (29,235) |
FINANCING ACTIVITIES | ||
Net repayments on revolving credit facility | (22,000) | (29,000) |
Term loan borrowings | 40,000 | 60,000 |
Dividends paid | (7,226) | (5,078) |
Debt issuance costs | (218) | (766) |
Net cash provided by financing activities | 10,556 | 25,156 |
Increase in cash and cash equivalents | 155 | 476 |
Cash and cash equivalents, beginning of period | 2,130 | 1,568 |
Cash and cash equivalents, end of period | 2,285 | 2,044 |
Supplemental Cash Flow Information: | ||
Interest paid | 1,105 | 780 |
Invoices accrued for construction, tenant improvement and other capitalized costs | 712 | 46 |
Increase (decrease) in fair value of cash flow hedges | $ 906 | $ (158) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Overview Community Healthcare Trust Incorporated (the ‘‘Company’’, ‘‘we’’, ‘‘our’’) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in our target submarkets. The Company conducts its business through an UPREIT structure in which its properties are owned by its operating partnership (the "OP"), either directly or through subsidiaries. The Company is the sole general partner of the OP, owning 100% of the OP units. As of March 31, 2018 , the Company had investments of approximately $413.3 million in 89 real estate properties, including a mortgage note, located in 27 states, totaling approximately 2.0 million square feet in the aggregate. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2018 . All material intercompany accounts and transactions have been eliminated. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates. Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and one subsidiary have also elected for that subsidiary to be treated as a taxable REIT subsidiary ("TRS"), which is subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company may record income tax expense or benefit for the TRS to the extent applicable. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its 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 GAAP) and meet other requirements to continue to qualify as a REIT. Effective January 1, 2018, under legislation from the Tax Cuts and Jobs Act of 2017, the maximum U.S. federal corporate income tax rate was reduced from 35% to 21%. Accordingly, to the extent that the activities of our taxable REIT subsidiary generates taxable income in future periods, it may be subject to lower U.S. federal income tax rates. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Condensed Consolidated Statements of Income as a component of general and administrative expenses. New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which establishes a comprehensive model to account for revenues arising from contracts with customers. ASU 2014-09 applies to all contracts with customers, except those that are within the scope of other topics in the FASB's Accounting Standards Codification, such as real estate leases and financial instruments. ASU 2014-09 requires companies to perform a five-step analysis of transactions to determine when and how revenue is recognized. The Company adopted ASU 2014-09 using the "modified retrospective" method effective January 1, 2018; as such, the Company applied the guidance only to the most recent period presented in the financial statements. The primary source of revenue for the Company is generated through its leasing arrangements with its tenants, which is covered under other accounting guidance, but certain non-lease revenues could be impacted by the new guidance. While the Company has not historically sold any properties, accounting for the sales of real estate could also be impacted by this new guidance. Prior to the adoption of ASU 2014-09, gains and losses from real estate sales were adjusted at the time of the sale by the maximum exposure to loss related to continuing involvement with the real estate. After adoption, any continuing involvement is considered a separate performance obligation and the sales price is required to be allocated between the elements with continuing involvement and those without continuing involvement. As the continuing performance obligations are satisfied, additional gains and losses will be recognized. The Company recognized no change to previously reported amounts from the cumulative effect of the adoption of ASU 2014-09. On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, ("ASU 2016-15") , which clarifies or provides guidance relating to eight specific cash flow classification issues. The standard should be applied retrospectively for each period presented, as appropriate. The impact of this new guidance will depend on future transactions, though the impact will only be related to the classification of those items on the statement of cash flows and will not impact the Company's total cash flows or its results of operations. There was no impact to the Company's Consolidated Financial Statements upon adoption of this standard. On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) , ("ASU 2017-09"), which provides guidance about which changes in the terms or conditions of a share-based payment award require a company to apply modification accounting in Topic 718. Under ASU No. 2017-09, a company will generally be required to apply modification accounting unless the fair value or intrinsic value of the modified award, the vesting conditions of the modified award, and the classification of the modified award as equity or a liability are the same as the original award immediately before the award is modified. There was no impact to the Company's Consolidated Financial Statements upon adoption of this standard. In February 2016, the FASB issued ASU No. 2016-02, Leases, ("ASU 2016-02"). This standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. ASU 2016-02 is effective for fiscal years, and interim periods within, beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Leasing revenues will continue to be recognized on a straight-line basis over the lease term, while certain reimbursable costs currently reflected on a net basis in the financial statements may require presentation on a gross basis under the new standard. Additionally, certain non-lease components may be accounted for under the new revenue recognition guidance in the Revenue ASUs. The Company may also be impacted by this new accounting guidance related to ground leases in which the Company would be the lessee. Pursuant to the new accounting guidance, lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company is still evaluating the complete impact of the adoption of ASU 2016-02 on January 1, 2019 to its consolidated financial position, results of operations and disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, ("ASU 2016-13"), which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. Companies will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. Companies will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This standard is effective for the Company on January 1, 2020 with early adoption permitted. The Company is in the initial stage of evaluating the impact of this new standard on its notes and trade receivables. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments At March 31, 2018 , the Company had investments of approximately $413.3 million in 89 real estate properties, including one mortgage note. The following table summarizes the Company's real estate investments. (Dollars in thousands) Number of Facilities Land and Land Improvements Buildings, Improvements, and Lease Intangibles Personal Property Total Accumulated Depreciation Medical office buildings: Florida 5 $ 4,608 $ 29,241 $ — $ 33,849 $ 2,896 Ohio 5 3,167 23,527 — 26,694 3,951 Texas 3 3,096 13,898 — 16,994 3,579 Illinois 2 1,134 11,823 — 12,957 1,803 Kansas 2 1,427 10,497 — 11,924 2,541 Iowa 1 2,241 9,004 — 11,245 1,412 Other states 14 3,642 27,365 — 31,007 2,898 32 19,315 125,355 — 144,670 19,080 Physician clinics: Kansas 3 1,638 10,909 — 12,547 2,157 Illinois 2 2,615 6,354 — 8,969 151 Florida 4 253 9,484 — 9,737 568 Other states 9 3,194 18,472 — 21,666 3,316 18 7,700 45,219 — 52,919 6,192 Surgical centers and hospitals: Louisiana 1 1,683 21,353 — 23,036 711 Indiana 1 523 14,405 — 14,928 532 Michigan 2 628 8,272 — 8,900 2,057 Illinois 1 2,183 5,410 — 7,593 847 Florida 1 271 7,017 — 7,288 347 Arizona 2 576 5,389 — 5,965 1,127 Other states 5 1,555 11,000 — 12,555 3,046 13 7,419 72,846 — 80,265 8,667 Specialty centers: Illinois 3 3,482 24,717 — 28,199 519 Other states 16 2,609 29,913 — 32,522 4,930 19 6,091 54,630 — 60,721 5,449 Behavioral facilities: West Virginia 1 2,138 22,897 — 25,035 298 Illinois 1 1,300 18,803 — 20,103 862 Indiana 2 1,126 6,040 — 7,166 195 Other states 2 977 8,729 — 9,706 159 6 5,541 56,469 — 62,010 1,514 Corporate property — — 2,011 116 2,127 150 Total owned properties 88 $ 46,066 $ 356,530 $ 116 $ 402,712 $ 41,052 Mortgage note receivable 1 — — — 10,633 — Total real estate investments 89 $ 46,066 $ 356,530 $ 116 $ 413,345 $ 41,052 |
Real Estate Leases
Real Estate Leases | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Real Estate Leases | Real Estate Leases The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2034 . The Company’s leases generally require the lessee to pay minimum rent, with fixed rent renewal terms or increases based on a Consumer Price Index and and may also include additional rent, which may include taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property. Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of March 31, 2018 , are as follows (in thousands): 2018 (nine months ending December 31) $ 27,856 2019 34,317 2020 31,425 2021 28,128 2022 24,973 2023 and thereafter 147,484 $ 294,183 Straight-line rental income Rental income is recognized as earned over the life of the lease agreement on a straight-line basis. Straight-line rent included in rental income was approximately $0.4 million and $0.3 million , respectively, for the three months ended March 31, 2018 and 2017 . Deferred revenue Rent received but not yet earned is deferred until such time it is earned. Deferred revenue, included in other liabilities, was approximately $ 1.3 million and $1.1 million , respectively, at March 31, 2018 and December 31, 2017 . |
Real Estate Acquisitions
Real Estate Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Real Estate Acquisitions | Real Estate Acquisitions Property Acquisitions During the first quarter of 2018, the Company acquired three real estate properties totaling approximately 38,000 square feet for an aggregate purchase price and cash consideration of approximately $12.7 million . Upon acquisition, the properties were 100% leased in the aggregate with lease expirations ranging from 2018 through 2033 . Amounts reflected in revenues and net income for the three months ended March 31, 2018 for these properties was approximately $20,230 and $13,415 , respectively. Transaction costs totaling approximately $101,000 related to these acquisitions were capitalized in the period and included, as applicable, in real estate assets or other assets. |
Mortgage Note Receivable
Mortgage Note Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Note Receivable | Mortgage Note Receivable The Company had one mortgage note receivable outstanding as of March 31, 2018 and December 31, 2017 with a principal balance of $10.6 million and an interest receivable of $0.6 million . The borrower and several related entities (the "Borrower") filed for voluntary bankruptcy on June 23, 2017. At the time of filing for bankruptcy, the Borrower was current on all obligations to the Company, but no payments were received during the bankruptcy. On December 28, 2017 the Company purchased $11.45 million face value of certain promissory notes, secured by accounts receivable of the Borrower, for $8.75 million from a syndicate of banks, a $2.7 million discount to face value, and in the first quarter of 2018 acquired $2.2 million of certain promissory notes, secured by the operations of two facilities related to the Borrower, but were not included in the bankruptcy, for a total investment in these promissory notes of approximately $10.95 million . On April 25, 2018, the Company provided a new $23.0 million loan to a newly formed company (Newco), secured by all assets and ownership interests in seven long-term acute care hospitals and one inpatient rehabilitation hospital that, along with a series of investments by the management of Newco, allowed Newco to acquire certain assets of the Borrower. Also on April 25, 2018, $10.95 million for the promissory notes discussed above and approximately $0.261 million of interest on those promissory notes and approximately $0.25 million in fees and reimbursement of expenses and approximately $6.7 million principal and accrued interest related to its mortgage note receivable were satisfied with proceeds from the new loan. In addition, the Company received title to the property previously financed by the mortgage note receivable at an approximate $4.5 million valuation, and the Company did not record interest on the mortgage note receivable during the first quarter of 2018. The Company does not believe that a material impairment exists, if any, at March 31, 2018, and therefore, has not recorded any impairment related to the bankruptcy. |
Debt, net
Debt, net | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt, net | Debt, net The table below details the Company's debt as of March 31, 2018 and December 31, 2017 . Balance as of (Dollars in thousands) March 31, 2018 December 31, 2017 Maturity Dates Revolving Credit Facility $ 12,000 $ 34,000 8/19 5-Year Term Loan, net 49,703 29,685 3/22 7-Year Term Loan, net 49,682 29,668 3/24 $ 111,385 $ 93,353 The Company's second amended and restated credit facility (the "Credit Facility") is by and among Community Healthcare OP, LP, the Company, the lenders from time to time party thereto, and SunTrust Bank, as Administrative Agent. The Company’s material subsidiaries are guarantors of the obligations under the Credit Facility. The Credit Facility provides for a $150.0 million revolving credit facility (the "Revolving Credit Facility") and $100.0 million in term loans (the "Term Loans"). The Credit Facility, through the accordion feature, allows borrowings up to a total of $450.0 million , including the ability to add and fund additional term loans. The Revolving Credit Facility matures on August 9, 2019 and includes two 12-month options to extend the maturity date of the Revolving Credit Facility, subject to the satisfaction of certain conditions. The Term Loans include a five -year term loan facility in the aggregate principal amount of $50.0 million (the "5-Year Term Loan") which matures on March 29, 2022 and a seven -year term loan facility in the aggregate principal amount of $50.0 million (the "7-Year Term Loan") which matures on March 29, 2024 . During the first quarter of 2018, the Company entered into two amendments relating to its Credit Facility. The first amendment, which was effective as of November 1, 2017, modified the formula used to calculate the amount of restricted payments the Company may make under the Credit Facility. The second amendment, effective on March 27, 2018, reduced the pricing margins on its LIBOR borrowings on both its Revolving Credit Facility and Term Loans and increased the maximum swingline commitment from $15.0 million to $20.0 million . The Company paid $0.2 million in fees related to these amendments. Amounts outstanding under the Revolving Credit Facility, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.75% to 2.50% or (ii) a base rate plus 0.75% to 1.50% , in each case, depending upon the Company’s leverage ratio. In addition, the Company is obligated to pay an annual fee equal to 0.25% of the amount of the unused portion of the Revolving Credit Facility if amounts borrowed are greater than 33.3% of the borrowing capacity under the Revolving Credit Facility and 0.35% of the unused portion of the Revolving Credit Facility if amounts borrowed are less than or equal to 33.3% of the borrowing capacity under the Revolving Credit Facility. At March 31, 2018 , the Company had $12.0 million outstanding under the Revolving Credit Facility with a remaining borrowing capacity of $138.0 million . Amounts outstanding under the Term Loans, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.95% to 2.65% or (ii) a base rate plus 0.95% to 1.65% , in each case, depending upon the Company’s leverage ratio. In addition, the Company is obligated to pay an annual fee equal to 0.35% of the amount of the unused portion of the Term Loans. The Company entered into interest rate swaps to fix the interest rates on the original Term Loan amounts drawn in 2017. On March 29, 2018, the Company borrowed the remaining $40.0 million , in equal amounts, available under its 5-Year and 7-Year Term Loans, repaid $40.0 million of its Revolving Credit Facility, and concurrently entered into interest rate swap agreements that fixed the interest rates on the additional $40.0 million drawn, resulting in fixed interest rates under the term loans ranging from 4.5790% to 4.6255% . See Note 7 for more details on the interest rate swaps. At March 31, 2018 , the Company had drawn the full $100.0 million under the Term Loans which had a fixed weighted average interest rate under the swaps of approximately 4.45% . The Company’s ability to borrow under the Credit Facility is subject to its ongoing compliance with a number of customary affirmative and negative covenants, including limitations with respect to liens, indebtedness, distributions, mergers, consolidations, investments, restricted payments and asset sales, as well as financial maintenance covenants. Also, the Company’s present financing policy prohibits incurring debt (secured or unsecured) in excess of 40% of its total book capitalization. The Company was in compliance with its financial covenants under its Credit Facility as of March 31, 2018 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and/or caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above the cap strike rate on the contract. As of March 31, 2018 , the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk for notional amounts totaling $100.0 million . The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017. Asset Derivatives Fair Value at Liability Derivatives Fair Value at March 31, 2018 December 31, 2017 Balance Sheet Classification March 31, 2018 December 31, 2017 Balance Sheet Classification Interest rate swaps $ 1,352 $ 258 Other assets $ 119 $ — Other Liabilities The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and is subsequently reclassified to interest expense in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s Term Loans. During the next twelve months, the Company estimates that an additional $0.1 million will be reclassified from other comprehensive income ("OCI") as an increase to interest expense. The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2018 . (Dollars in thousands) Three Months Ended Three Months Ended Amount of unrealized gain (loss) recognized in OCI on derivative $ 906 $ (158 ) Amount of loss reclassified from accumulated OCI into interest expense $ 68 $ 6 Total Interest Expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 1,268 $ 597 Credit-risk-related Contingent Feature s As of March 31, 2018 , the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $0.1 million . As of March 31, 2018 , the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of approximately $0.1 million at March 31, 2018 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock The following table provides a reconciliation of the beginning and ending common stock balances for the three months ended March 31, 2018 and for the year ended December 31, 2017 : Three Months Ended Year Ended December 31, 2017 Balance, beginning of period 18,085,798 12,988,482 Issuance of common stock — 4,887,500 Restricted stock-based awards 94,001 209,816 Balance, end of period 18,179,799 18,085,798 Equity Offering On July 26, 2017, the Company completed a public offering of 4,887,500 shares of its common stock, including 637,500 shares of common stock issued in connection with the exercise in full of the underwriters' option to purchase additional shares, and received net proceeds of approximately $108.6 million after deducting underwriting discount and commissions and offering expenses paid by the Company. Proceeds from the offering were used to repay the outstanding balance on our revolving credit facility totaling $58.0 million and for additional investments during 2017. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per common share. Three Months Ended (Dollars in thousands, except per share data) 2018 2017 Net income $ 1,872 $ 913 Participating securities' share in earnings (241 ) — Net income, less participating securities' share in earnings $ 1,631 $ 913 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 18,164,132 13,089,684 Unvested restricted stock (590,449 ) (403,501 ) Weighted average Common Shares outstanding–Basic 17,573,683 12,686,183 Weighted average Common Shares outstanding–Basic 17,573,683 12,686,183 Dilutive potential common shares — 133,313 Weighted average Common Shares outstanding –Diluted 17,573,683 12,819,496 Basic Net Income per Common Share $ 0.09 $ 0.07 Diluted Net Income per Common Share $ 0.09 $ 0.07 |
Incentive Plan
Incentive Plan | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Plan | Incentive Plan Under the Company's 2014 Incentive Plan, awards may be made in the form of restricted stock, cash or a combination of both. Compensation expense recognized from the amortization of the value of the Company's officer, employee and director shares over the applicable vesting periods during the three months ended March 31, 2018 and 2017 was approximately $0.6 million and $0.3 million , respectively. A summary of the activity under the 2014 Incentive Plan for the three months ended March 31, 2018 and 2017 is included in the table below. Three Months Ended March 31, 2018 2017 Stock-based awards, beginning of period 512,115 302,299 Stock in lieu of compensation 47,027 59,285 Stock awards 46,974 57,486 Total stock granted 94,001 116,771 Stock-based awards, end of period 606,116 419,070 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consists primarily of notes receivable, accounts and interest receivables, straight-line rent receivables, fair value of interest rate swaps, prepaid assets and deferred financing costs. Items included in "Other assets, net" on the Company's Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 are detailed in the table below. Balance as of (Dollars in thousands) March 31, 2018 December 31, 2017 Notes receivable $ 16,018 $ 13,917 Accounts and interest receivables 3,220 2,417 Straight-line rent receivables 2,457 2,179 Allowance for doubtful accounts (191 ) (293 ) Prepaid assets 294 341 Deferred financing costs, net 721 618 Leasing commissions, net 455 483 Deferred tax asset 610 478 Fair value of interest rate swaps 1,352 258 Other 274 255 $ 25,210 $ 20,653 The Company's $16.0 million in notes receivable at March 31, 2018 include mainly the following notes. Interest related to these notes is included in Other Operating Income on the Company's Condensed Consolidated Income Statements. • During 2017, concurrent with the acquisition of a property, the Company entered into a $5.0 million note receivable with the tenant in the building. The $5.0 million note receivable, which matures on September 27, 2022, currently bears interest at 12% per annum, increasing through the maturity date to 16% per annum, and payments aggregating approximately $1.9 million are due each year until maturity with the remaining amount due at maturity. • On December 27, 2017, the Company purchased, at a $2.7 million discount to face value, certain promissory notes for $8.75 million which were held by a syndicate of banks that were also creditors of our Borrower. See Note 5 for more details. • During the first quarter of 2018, the Company acquired $2.2 million of certain promissory notes, secured by the operations of two facilities of our Borrower, which were not included in the bankruptcy. See Note 5 for more details. The Company identified the borrowers of these notes as VIEs, but management determined that the Company was not the primary beneficiary of the VIEs because we lack either directly or through related parties any material impact in the activities that impact the borrowers' economic performance. We are not obligated to provide support beyond our stated commitment to the borrowers, and accordingly our maximum exposure to loss as a result of this relationship is limited to the amount of our outstanding notes receivable as noted above. The VIEs that we have identified at March 31, 2018 are summarized in the table below. Classification Carrying Amount (in millions) Maximum Exposure to Loss (in millions) Notes receivable $ 5.0 $ 5.0 Notes receivable $ 8.8 $ 8.8 Notes receivable $ 1.5 $ 1.5 Notes receivable $ 0.7 $ 0.7 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practical to estimate the fair value. Cash and cash equivalents - The carrying amount approximates the fair value. Mortgage note receivable - The fair value is estimated using cash flow analyses, based on an assumed market rate of interest or at a rate consistent with the rates on mortgage notes acquired by the Company and are classified as level 2 in the hierarchy. Notes receivable - The fair value is estimated using cash flow analyses, based on an assumed market rate of interest or at a rate consistent with the rates on notes carried by the Company and are classified as level 2 in the hierarchy. Borrowings under our Credit Facility - The carrying amount approximates the fair value because the borrowings are based on variable market interest rates. Interest rate swaps - The fair value is estimated using discounted cash flow techniques. These techniques incorporate primarily level 2 inputs. The market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation model for interest rate swaps are observable in active markets and are classified as level 2 in the hierarchy. The table below details the fair values and carrying values for our mortgage note and notes receivable and interest rate swaps at March 31, 2018 and December 31, 2017 , using level 2 inputs. March 31, 2018 December 31, 2017 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Mortgage note receivable $ 10,633 $ 10,633 $ 10,633 $ 10,633 Notes receivable $ 16,018 $ 16,029 $ 13,917 $ 13,828 Interest rate swap asset $ 1,352 $ 1,352 $ 258 $ 258 Interest rate swap liability $ 119 $ 119 $ — $ — |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On May 3, 2018 , the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.40 per share. The dividend is payable on June 1, 2018 to stockholders of record on May 18, 2018 . |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2018 . All material intercompany accounts and transactions have been eliminated. |
Use of Estimates in the Condensed Consolidated Financial Statements | Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates. |
Income Taxes | Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and one subsidiary have also elected for that subsidiary to be treated as a taxable REIT subsidiary ("TRS"), which is subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company may record income tax expense or benefit for the TRS to the extent applicable. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its 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 GAAP) and meet other requirements to continue to qualify as a REIT. Effective January 1, 2018, under legislation from the Tax Cuts and Jobs Act of 2017, the maximum U.S. federal corporate income tax rate was reduced from 35% to 21%. Accordingly, to the extent that the activities of our taxable REIT subsidiary generates taxable income in future periods, it may be subject to lower U.S. federal income tax rates. The Company classifies interest and penalties related to uncertain tax positions, if any, in the Condensed Consolidated Statements of Income as a component of general and administrative expenses. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which establishes a comprehensive model to account for revenues arising from contracts with customers. ASU 2014-09 applies to all contracts with customers, except those that are within the scope of other topics in the FASB's Accounting Standards Codification, such as real estate leases and financial instruments. ASU 2014-09 requires companies to perform a five-step analysis of transactions to determine when and how revenue is recognized. The Company adopted ASU 2014-09 using the "modified retrospective" method effective January 1, 2018; as such, the Company applied the guidance only to the most recent period presented in the financial statements. The primary source of revenue for the Company is generated through its leasing arrangements with its tenants, which is covered under other accounting guidance, but certain non-lease revenues could be impacted by the new guidance. While the Company has not historically sold any properties, accounting for the sales of real estate could also be impacted by this new guidance. Prior to the adoption of ASU 2014-09, gains and losses from real estate sales were adjusted at the time of the sale by the maximum exposure to loss related to continuing involvement with the real estate. After adoption, any continuing involvement is considered a separate performance obligation and the sales price is required to be allocated between the elements with continuing involvement and those without continuing involvement. As the continuing performance obligations are satisfied, additional gains and losses will be recognized. The Company recognized no change to previously reported amounts from the cumulative effect of the adoption of ASU 2014-09. On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, ("ASU 2016-15") , which clarifies or provides guidance relating to eight specific cash flow classification issues. The standard should be applied retrospectively for each period presented, as appropriate. The impact of this new guidance will depend on future transactions, though the impact will only be related to the classification of those items on the statement of cash flows and will not impact the Company's total cash flows or its results of operations. There was no impact to the Company's Consolidated Financial Statements upon adoption of this standard. On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) , ("ASU 2017-09"), which provides guidance about which changes in the terms or conditions of a share-based payment award require a company to apply modification accounting in Topic 718. Under ASU No. 2017-09, a company will generally be required to apply modification accounting unless the fair value or intrinsic value of the modified award, the vesting conditions of the modified award, and the classification of the modified award as equity or a liability are the same as the original award immediately before the award is modified. There was no impact to the Company's Consolidated Financial Statements upon adoption of this standard. In February 2016, the FASB issued ASU No. 2016-02, Leases, ("ASU 2016-02"). This standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. ASU 2016-02 is effective for fiscal years, and interim periods within, beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Leasing revenues will continue to be recognized on a straight-line basis over the lease term, while certain reimbursable costs currently reflected on a net basis in the financial statements may require presentation on a gross basis under the new standard. Additionally, certain non-lease components may be accounted for under the new revenue recognition guidance in the Revenue ASUs. The Company may also be impacted by this new accounting guidance related to ground leases in which the Company would be the lessee. Pursuant to the new accounting guidance, lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company is still evaluating the complete impact of the adoption of ASU 2016-02 on January 1, 2019 to its consolidated financial position, results of operations and disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, ("ASU 2016-13"), which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. Companies will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. Companies will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This standard is effective for the Company on January 1, 2020 with early adoption permitted. The Company is in the initial stage of evaluating the impact of this new standard on its notes and trade receivables. |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Schedule of real estate property investments | At March 31, 2018 , the Company had investments of approximately $413.3 million in 89 real estate properties, including one mortgage note. The following table summarizes the Company's real estate investments. (Dollars in thousands) Number of Facilities Land and Land Improvements Buildings, Improvements, and Lease Intangibles Personal Property Total Accumulated Depreciation Medical office buildings: Florida 5 $ 4,608 $ 29,241 $ — $ 33,849 $ 2,896 Ohio 5 3,167 23,527 — 26,694 3,951 Texas 3 3,096 13,898 — 16,994 3,579 Illinois 2 1,134 11,823 — 12,957 1,803 Kansas 2 1,427 10,497 — 11,924 2,541 Iowa 1 2,241 9,004 — 11,245 1,412 Other states 14 3,642 27,365 — 31,007 2,898 32 19,315 125,355 — 144,670 19,080 Physician clinics: Kansas 3 1,638 10,909 — 12,547 2,157 Illinois 2 2,615 6,354 — 8,969 151 Florida 4 253 9,484 — 9,737 568 Other states 9 3,194 18,472 — 21,666 3,316 18 7,700 45,219 — 52,919 6,192 Surgical centers and hospitals: Louisiana 1 1,683 21,353 — 23,036 711 Indiana 1 523 14,405 — 14,928 532 Michigan 2 628 8,272 — 8,900 2,057 Illinois 1 2,183 5,410 — 7,593 847 Florida 1 271 7,017 — 7,288 347 Arizona 2 576 5,389 — 5,965 1,127 Other states 5 1,555 11,000 — 12,555 3,046 13 7,419 72,846 — 80,265 8,667 Specialty centers: Illinois 3 3,482 24,717 — 28,199 519 Other states 16 2,609 29,913 — 32,522 4,930 19 6,091 54,630 — 60,721 5,449 Behavioral facilities: West Virginia 1 2,138 22,897 — 25,035 298 Illinois 1 1,300 18,803 — 20,103 862 Indiana 2 1,126 6,040 — 7,166 195 Other states 2 977 8,729 — 9,706 159 6 5,541 56,469 — 62,010 1,514 Corporate property — — 2,011 116 2,127 150 Total owned properties 88 $ 46,066 $ 356,530 $ 116 $ 402,712 $ 41,052 Mortgage note receivable 1 — — — 10,633 — Total real estate investments 89 $ 46,066 $ 356,530 $ 116 $ 413,345 $ 41,052 |
Real Estate Leases (Tables)
Real Estate Leases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of March 31, 2018 , are as follows (in thousands): 2018 (nine months ending December 31) $ 27,856 2019 34,317 2020 31,425 2021 28,128 2022 24,973 2023 and thereafter 147,484 $ 294,183 |
Debt, net (Tables)
Debt, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The table below details the Company's debt as of March 31, 2018 and December 31, 2017 . Balance as of (Dollars in thousands) March 31, 2018 December 31, 2017 Maturity Dates Revolving Credit Facility $ 12,000 $ 34,000 8/19 5-Year Term Loan, net 49,703 29,685 3/22 7-Year Term Loan, net 49,682 29,668 3/24 $ 111,385 $ 93,353 |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments on balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017. Asset Derivatives Fair Value at Liability Derivatives Fair Value at March 31, 2018 December 31, 2017 Balance Sheet Classification March 31, 2018 December 31, 2017 Balance Sheet Classification Interest rate swaps $ 1,352 $ 258 Other assets $ 119 $ — Other Liabilities |
Schedule of derivative gain (loss) | The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2018 . (Dollars in thousands) Three Months Ended Three Months Ended Amount of unrealized gain (loss) recognized in OCI on derivative $ 906 $ (158 ) Amount of loss reclassified from accumulated OCI into interest expense $ 68 $ 6 Total Interest Expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 1,268 $ 597 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of reconciliation of common stock | The following table provides a reconciliation of the beginning and ending common stock balances for the three months ended March 31, 2018 and for the year ended December 31, 2017 : Three Months Ended Year Ended December 31, 2017 Balance, beginning of period 18,085,798 12,988,482 Issuance of common stock — 4,887,500 Restricted stock-based awards 94,001 209,816 Balance, end of period 18,179,799 18,085,798 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per common share. Three Months Ended (Dollars in thousands, except per share data) 2018 2017 Net income $ 1,872 $ 913 Participating securities' share in earnings (241 ) — Net income, less participating securities' share in earnings $ 1,631 $ 913 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 18,164,132 13,089,684 Unvested restricted stock (590,449 ) (403,501 ) Weighted average Common Shares outstanding–Basic 17,573,683 12,686,183 Weighted average Common Shares outstanding–Basic 17,573,683 12,686,183 Dilutive potential common shares — 133,313 Weighted average Common Shares outstanding –Diluted 17,573,683 12,819,496 Basic Net Income per Common Share $ 0.09 $ 0.07 Diluted Net Income per Common Share $ 0.09 $ 0.07 |
Incentive Plan (Tables)
Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of nonvested restricted stock activity | A summary of the activity under the 2014 Incentive Plan for the three months ended March 31, 2018 and 2017 is included in the table below. Three Months Ended March 31, 2018 2017 Stock-based awards, beginning of period 512,115 302,299 Stock in lieu of compensation 47,027 59,285 Stock awards 46,974 57,486 Total stock granted 94,001 116,771 Stock-based awards, end of period 606,116 419,070 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Items included in "Other assets, net" on the Company's Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 are detailed in the table below. Balance as of (Dollars in thousands) March 31, 2018 December 31, 2017 Notes receivable $ 16,018 $ 13,917 Accounts and interest receivables 3,220 2,417 Straight-line rent receivables 2,457 2,179 Allowance for doubtful accounts (191 ) (293 ) Prepaid assets 294 341 Deferred financing costs, net 721 618 Leasing commissions, net 455 483 Deferred tax asset 610 478 Fair value of interest rate swaps 1,352 258 Other 274 255 $ 25,210 $ 20,653 |
Schedule of VIEs | The VIEs that we have identified at March 31, 2018 are summarized in the table below. Classification Carrying Amount (in millions) Maximum Exposure to Loss (in millions) Notes receivable $ 5.0 $ 5.0 Notes receivable $ 8.8 $ 8.8 Notes receivable $ 1.5 $ 1.5 Notes receivable $ 0.7 $ 0.7 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The table below details the fair values and carrying values for our mortgage note and notes receivable and interest rate swaps at March 31, 2018 and December 31, 2017 , using level 2 inputs. March 31, 2018 December 31, 2017 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Mortgage note receivable $ 10,633 $ 10,633 $ 10,633 $ 10,633 Notes receivable $ 16,018 $ 16,029 $ 13,917 $ 13,828 Interest rate swap asset $ 1,352 $ 1,352 $ 258 $ 258 Interest rate swap liability $ 119 $ 119 $ — $ — |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Business Overview/Segment Reporting (Details) $ in Thousands, ft² in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)ft²statereal_estate_property | |
Accounting Policies [Abstract] | |
General partner ownership | 100.00% |
Value of real estate property investments and mortgages | $ | $ 413,345 |
Number of real estate properties | real_estate_property | 89 |
Number of states in which real estate investments are in | state | 27 |
Area of real estate property (in square feet) | ft² | 2 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Details) $ in Thousands | Mar. 31, 2018USD ($)mortgage_note_receivablereal_estate_property |
Real Estate [Line Items] | |
Value of real estate property investments and mortgages | $ | $ 413,345 |
Number of real estate properties | real_estate_property | 89 |
Number of mortgage note receivables | 1 |
Mortgage Receivable [Member] | |
Real Estate [Line Items] | |
Number of mortgage note receivables | 1 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Real Estate Property Investments (Details) $ in Thousands | Mar. 31, 2018USD ($)mortgage_note_receivablereal_estate_property | Dec. 31, 2017USD ($) |
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 89 | |
Land and Land Improvements | $ 46,066 | $ 44,419 |
Buildings, Improvements, and Lease Intangibles | 356,530 | 343,955 |
Personal Property | 116 | 112 |
Total real estate properties | 402,712 | 388,486 |
Accumulated Depreciation | $ 41,052 | 36,136 |
Number of mortgage note receivables | mortgage_note_receivable | 1 | |
Mortgage note receivable, net | $ 10,633 | $ 10,633 |
Value of real estate property investments and mortgages | $ 413,345 | |
Medical office [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 32 | |
Land and Land Improvements | $ 19,315 | |
Buildings, Improvements, and Lease Intangibles | 125,355 | |
Total real estate properties | 144,670 | |
Accumulated Depreciation | $ 19,080 | |
Medical office [Member] | Florida [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 5 | |
Land and Land Improvements | $ 4,608 | |
Buildings, Improvements, and Lease Intangibles | 29,241 | |
Total real estate properties | 33,849 | |
Accumulated Depreciation | $ 2,896 | |
Medical office [Member] | Illinois [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 1,134 | |
Buildings, Improvements, and Lease Intangibles | 11,823 | |
Total real estate properties | 12,957 | |
Accumulated Depreciation | $ 1,803 | |
Medical office [Member] | Iowa [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 2,241 | |
Buildings, Improvements, and Lease Intangibles | 9,004 | |
Total real estate properties | 11,245 | |
Accumulated Depreciation | $ 1,412 | |
Medical office [Member] | Kansas [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 1,427 | |
Buildings, Improvements, and Lease Intangibles | 10,497 | |
Total real estate properties | 11,924 | |
Accumulated Depreciation | $ 2,541 | |
Medical office [Member] | Ohio [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 5 | |
Land and Land Improvements | $ 3,167 | |
Buildings, Improvements, and Lease Intangibles | 23,527 | |
Total real estate properties | 26,694 | |
Accumulated Depreciation | $ 3,951 | |
Medical office [Member] | Other States [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 14 | |
Land and Land Improvements | $ 3,642 | |
Buildings, Improvements, and Lease Intangibles | 27,365 | |
Total real estate properties | 31,007 | |
Accumulated Depreciation | $ 2,898 | |
Medical office [Member] | Texas [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 3 | |
Land and Land Improvements | $ 3,096 | |
Buildings, Improvements, and Lease Intangibles | 13,898 | |
Total real estate properties | 16,994 | |
Accumulated Depreciation | $ 3,579 | |
Physician clinics [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 18 | |
Land and Land Improvements | $ 7,700 | |
Buildings, Improvements, and Lease Intangibles | 45,219 | |
Total real estate properties | 52,919 | |
Accumulated Depreciation | $ 6,192 | |
Physician clinics [Member] | Florida [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 4 | |
Land and Land Improvements | $ 253 | |
Buildings, Improvements, and Lease Intangibles | 9,484 | |
Total real estate properties | 9,737 | |
Accumulated Depreciation | $ 568 | |
Physician clinics [Member] | Illinois [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 2,615 | |
Buildings, Improvements, and Lease Intangibles | 6,354 | |
Total real estate properties | 8,969 | |
Accumulated Depreciation | $ 151 | |
Physician clinics [Member] | Kansas [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 3 | |
Land and Land Improvements | $ 1,638 | |
Buildings, Improvements, and Lease Intangibles | 10,909 | |
Total real estate properties | 12,547 | |
Accumulated Depreciation | $ 2,157 | |
Physician clinics [Member] | Other States [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 9 | |
Land and Land Improvements | $ 3,194 | |
Buildings, Improvements, and Lease Intangibles | 18,472 | |
Total real estate properties | 21,666 | |
Accumulated Depreciation | $ 3,316 | |
Surgical Centers and Hospitals [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 13 | |
Land and Land Improvements | $ 7,419 | |
Buildings, Improvements, and Lease Intangibles | 72,846 | |
Total real estate properties | 80,265 | |
Accumulated Depreciation | $ 8,667 | |
Surgical Centers and Hospitals [Member] | Arizona [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 576 | |
Buildings, Improvements, and Lease Intangibles | 5,389 | |
Total real estate properties | 5,965 | |
Accumulated Depreciation | $ 1,127 | |
Surgical Centers and Hospitals [Member] | Florida [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 271 | |
Buildings, Improvements, and Lease Intangibles | 7,017 | |
Total real estate properties | 7,288 | |
Accumulated Depreciation | $ 347 | |
Surgical Centers and Hospitals [Member] | Illinois [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 2,183 | |
Buildings, Improvements, and Lease Intangibles | 5,410 | |
Total real estate properties | 7,593 | |
Accumulated Depreciation | $ 847 | |
Surgical Centers and Hospitals [Member] | Indiana [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 523 | |
Buildings, Improvements, and Lease Intangibles | 14,405 | |
Total real estate properties | 14,928 | |
Accumulated Depreciation | $ 532 | |
Surgical Centers and Hospitals [Member] | Louisiana [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 1,683 | |
Buildings, Improvements, and Lease Intangibles | 21,353 | |
Total real estate properties | 23,036 | |
Accumulated Depreciation | $ 711 | |
Surgical Centers and Hospitals [Member] | Michigan [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 628 | |
Buildings, Improvements, and Lease Intangibles | 8,272 | |
Total real estate properties | 8,900 | |
Accumulated Depreciation | $ 2,057 | |
Surgical Centers and Hospitals [Member] | Other States [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 5 | |
Land and Land Improvements | $ 1,555 | |
Buildings, Improvements, and Lease Intangibles | 11,000 | |
Total real estate properties | 12,555 | |
Accumulated Depreciation | $ 3,046 | |
Specialty Centers [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 19 | |
Land and Land Improvements | $ 6,091 | |
Buildings, Improvements, and Lease Intangibles | 54,630 | |
Total real estate properties | 60,721 | |
Accumulated Depreciation | $ 5,449 | |
Specialty Centers [Member] | Illinois [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 3 | |
Land and Land Improvements | $ 3,482 | |
Buildings, Improvements, and Lease Intangibles | 24,717 | |
Total real estate properties | 28,199 | |
Accumulated Depreciation | $ 519 | |
Specialty Centers [Member] | Other States [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 16 | |
Land and Land Improvements | $ 2,609 | |
Buildings, Improvements, and Lease Intangibles | 29,913 | |
Total real estate properties | 32,522 | |
Accumulated Depreciation | $ 4,930 | |
Behavioral facilities [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 6 | |
Land and Land Improvements | $ 5,541 | |
Buildings, Improvements, and Lease Intangibles | 56,469 | |
Total real estate properties | 62,010 | |
Accumulated Depreciation | $ 1,514 | |
Behavioral facilities [Member] | Illinois [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 1,300 | |
Buildings, Improvements, and Lease Intangibles | 18,803 | |
Total real estate properties | 20,103 | |
Accumulated Depreciation | $ 862 | |
Behavioral facilities [Member] | Indiana [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 1,126 | |
Buildings, Improvements, and Lease Intangibles | 6,040 | |
Total real estate properties | 7,166 | |
Accumulated Depreciation | $ 195 | |
Behavioral facilities [Member] | Other States [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 2 | |
Land and Land Improvements | $ 977 | |
Buildings, Improvements, and Lease Intangibles | 8,729 | |
Total real estate properties | 9,706 | |
Accumulated Depreciation | $ 159 | |
Behavioral facilities [Member] | West Virginia [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 1 | |
Land and Land Improvements | $ 2,138 | |
Buildings, Improvements, and Lease Intangibles | 22,897 | |
Total real estate properties | 25,035 | |
Accumulated Depreciation | $ 298 | |
Corporate property [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 0 | |
Land and Land Improvements | $ 0 | |
Buildings, Improvements, and Lease Intangibles | 2,011 | |
Personal Property | 116 | |
Total real estate properties | 2,127 | |
Accumulated Depreciation | $ 150 | |
Total Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of Facilities | real_estate_property | 88 | |
Land and Land Improvements | $ 46,066 | |
Buildings, Improvements, and Lease Intangibles | 356,530 | |
Personal Property | 116 | |
Total real estate properties | 402,712 | |
Accumulated Depreciation | $ 41,052 |
Real Estate Leases (Details)
Real Estate Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Real Estate [Line Items] | |||
2018 (nine months ending December 31) | $ 27,856 | ||
2,019 | 34,317 | ||
2,020 | 31,425 | ||
2,021 | 28,128 | ||
2,022 | 24,973 | ||
2023 and thereafter | 147,484 | ||
Total | 294,183 | ||
Straight Line rent | 415 | $ 265 | |
Other Liabilities [Member] | |||
Real Estate [Line Items] | |||
Deferred revenue | $ 1,300 | $ 1,100 |
Real Estate Acquisitions (Detai
Real Estate Acquisitions (Details) ft² in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)ft²real_estate_property | |
Business Combinations [Abstract] | |
Number of properties acquired | real_estate_property | 3 |
Area of real estate property (in square feet) | ft² | 38 |
Consideration transferred | $ 12,700,000 |
Percentage of properties that were leased at acquisition | 100.00% |
Revenue from properties acquired | $ 20,230 |
Net income from properties acquired | 13,415 |
Transaction costs | $ 101,000 |
Mortgage Note Receivable (Detai
Mortgage Note Receivable (Details) $ in Thousands | Apr. 25, 2018USD ($)hospital | Dec. 28, 2017USD ($)real_estate_property | Mar. 31, 2018USD ($)mortgage_note_receivable | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)real_estate_property | Dec. 27, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of mortgage note receivables | mortgage_note_receivable | 1 | |||||
Mortgage note receivable, net | $ 10,633 | $ 10,633 | ||||
Notes receivable | 16,018 | 13,917 | ||||
Proceeds from the repayment of notes receivable | 17 | $ 140 | ||||
Funding of notes receivable | 2,201 | $ 0 | ||||
Real estate property | $ 361,660 | 352,350 | ||||
Mortgage Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of mortgage note receivables | mortgage_note_receivable | 1 | |||||
Promissory Notes, Secured by Accounts Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Mortgage loans on real estate, face amount of mortgages | $ 11,450 | |||||
Notes receivable | 8,750 | $ 8,750 | ||||
Receivable with imputed interest, discount | $ 2,700 | $ 2,700 | ||||
Promissory Notes, Secured By Facilities Owned By Borrower [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | $ 2,200 | |||||
Notes Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable | $ 5,000 | |||||
Other Assets [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest receivable | $ 600 | |||||
Subsequent Event [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Repayments of mortgage note payable | $ 6,700 | |||||
Subsequent Event [Member] | Notes Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Proceeds from the repayment of notes receivable | 10,950 | |||||
Funding of notes receivable | 23,000 | |||||
Proceeds from the repayment of notes receivable, interest | 261 | |||||
Proceeds from the repayment of notes receivable, fees and expenses | $ 250 | |||||
Long-Term Acute Care Facility [Member] | Subsequent Event [Member] | Notes Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of properties used to secure notes by borrower | hospital | 7 | |||||
Specialty Hospital [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of properties used to secure notes by borrower | real_estate_property | 2 | 2 | ||||
Specialty Hospital [Member] | Subsequent Event [Member] | Notes Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of properties used to secure notes by borrower | hospital | 1 | |||||
Property Previously Financed By Mortgage Receivable [Member] | Subsequent Event [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Real estate property | $ 4,500 |
Debt, net - Schedule of Debt (D
Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt, net | $ 111,385 | $ 93,353 |
Term Loan [Member] | Second Amended And Restated Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, net | 100,000 | |
Revolving Credit Facility [Member] | Line of Credit [Member] | Second Amended And Restated Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, net | 12,000 | 34,000 |
5 Year Term Loan [Member] | Term Loan [Member] | Second Amended And Restated Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, net | 49,703 | 29,685 |
7 Year Term Loan [Member] | Term Loan [Member] | Second Amended And Restated Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, net | $ 49,682 | $ 29,668 |
Debt, net - Narrative (Details)
Debt, net - Narrative (Details) | Mar. 29, 2018USD ($) | Jul. 26, 2017USD ($) | Mar. 29, 2017USD ($)option | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 27, 2018USD ($) | Mar. 26, 2018USD ($) | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Debt issuance costs | $ 218,000 | $ 766,000 | ||||||
Amount outstanding | 111,385,000 | $ 93,353,000 | ||||||
Draw on term loan borrowings | $ 40,000,000 | $ 60,000,000 | ||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt repaid | $ 40,000,000 | $ 58,000,000 | ||||||
Swingline Commitment [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 15,000,000 | ||||||
Second Amended And Restated Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum percentage of total book capitalization | 40.00% | |||||||
Second Amended And Restated Credit Facility [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Face amount | $ 100,000,000 | |||||||
Unused borrowing commitment fee percentage | 0.35% | |||||||
Amount outstanding | $ 100,000,000 | |||||||
Draw on term loan borrowings | $ 40,000,000 | |||||||
Weighted average interest rate percentage | 4.45% | |||||||
Second Amended And Restated Credit Facility [Member] | Minimum [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Fixed rate | 4.579% | |||||||
Second Amended And Restated Credit Facility [Member] | Maximum [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Fixed rate | 4.6255% | |||||||
Second Amended And Restated Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 1.95% | |||||||
Second Amended And Restated Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 2.65% | |||||||
Second Amended And Restated Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 0.95% | |||||||
Second Amended And Restated Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 1.65% | |||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 150,000,000 | |||||||
Number of options to extend | option | 2 | |||||||
Amount outstanding | $ 12,000,000 | 34,000,000 | ||||||
Remaining borrowing capacity | 138,000,000 | |||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 1.75% | |||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 2.50% | |||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 0.75% | |||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate percentage | 1.50% | |||||||
Second Amended And Restated Credit Facility [Member] | Credit Facility, Accordion Feature [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 450,000,000 | |||||||
Second Amended And Restated Credit Facility [Member] | 5 Year Term Loan [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Face amount | $ 50,000,000 | |||||||
Debt term | 5 years | |||||||
Amount outstanding | 49,703,000 | 29,685,000 | ||||||
Second Amended And Restated Credit Facility [Member] | 7 Year Term Loan [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Face amount | $ 50,000,000 | |||||||
Debt term | 7 years | |||||||
Amount outstanding | $ 49,682,000 | $ 29,668,000 | ||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility, Unused Borrowing Capacity Rate 1 [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused borrowing commitment fee percentage | 0.25% | |||||||
Percentage of borrowing capacity outstanding | 33.30% | |||||||
Second Amended And Restated Credit Facility [Member] | Revolving Credit Facility, Unused Borrowing Capacity Rate 2 [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused borrowing commitment fee percentage | 0.35% | |||||||
Percentage of borrowing capacity outstanding | 33.30% |
Derivative Financial Instrume40
Derivative Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)derivative_instrument | |
Derivative [Line Items] | |
Cash flow hedges reclassified to interest expense | $ 0.1 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |
Derivative [Line Items] | |
Number outstanding interest rate derivatives | derivative_instrument | 4 |
Notional amount | $ 100 |
Fair value of derivatives in net asset position | 0.1 |
Aggregate termination value | $ 0.1 |
Derivative Financial Instrume41
Derivative Financial Instruments - Fair Value Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1,352 | $ 258 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,352 | 258 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 119 | $ 0 |
Derivative Financial Instrume42
Derivative Financial Instruments - Cash Flow Hedging (Details) - Interest Rate Contract [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of unrealized gain (loss) recognized in OCI on derivative | $ 906 | $ (158) |
Amount of loss reclassified from accumulated OCI into interest expense | 68 | 6 |
Total Interest Expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded | $ 1,268 | $ 597 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Common Stock (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period (in shares) | 18,085,798 | 12,988,482 |
Issuance of common stock (in shares) | 0 | 4,887,500 |
Restricted stock-based awards (in shares) | 94,001 | 209,816 |
Balance, end of period (in shares) | 18,179,799 | 18,085,798 |
Stockholders' Equity - Equity O
Stockholders' Equity - Equity Offering (Details) - USD ($) $ in Millions | Mar. 29, 2018 | Jul. 26, 2017 |
Common Stock [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Proceeds from sale of stock | $ 108.6 | |
Public Offering [Member] | Common Stock [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares issued in transaction (shares) | 4,887,500 | |
Over-Allotment Option [Member] | Common Stock [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares issued in transaction (shares) | 637,500 | |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Debt repaid | $ 40 | $ 58 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 1,872 | $ 913 |
Participating securities' share in earnings | (241) | 0 |
Net income, less participating securities' share in earnings | $ 1,631 | $ 913 |
Weighted average Common Shares outstanding | ||
Weighted average Common Shares outstanding (in shares) | 18,164,132 | 13,089,684 |
Unvested restricted stock (in shares) | (590,449) | (403,501) |
Weighted average Common Shares outstanding–Basic (in shares) | 17,573,683 | 12,686,183 |
Weighted average Common Shares outstanding–Basic (in shares) | 17,573,683 | 12,686,183 |
Dilutive effect of restricted stock (in shares) | 0 | 133,313 |
Weighted average Common Shares outstanding –Diluted (in shares) | 17,573,683 | 12,819,496 |
Basic Net Income per Common Share (in dollars per share) | $ 0.09 | $ 0.07 |
Diluted Net Income per Common Share (in dollars per share) | $ 0.09 | $ 0.07 |
Incentive Plan - Narrative (Det
Incentive Plan - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
2014 Incentive Plan [Member] | Restricted Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 0.6 | $ 0.3 |
Incentive Plan - Restricted Sto
Incentive Plan - Restricted Stock Activity (Details) - 2014 Incentive Plan [Member] - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Stock-based awards, beginning of period (in shares) | 512,115 | 302,299 |
Granted (in shares) | 94,001 | 116,771 |
Stock-based awards, end of period (in shares) | 606,116 | 419,070 |
Restricted Common Stock, Stock in Lieu of Compensation [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 47,027 | 59,285 |
Restricted Common Stock, Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 46,974 | 57,486 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Notes receivable | $ 16,018 | $ 13,917 |
Accounts and interest receivables | 3,220 | 2,417 |
Straight-line rent receivables | 2,457 | 2,179 |
Allowance for doubtful accounts | (191) | (293) |
Prepaid assets | 294 | 341 |
Deferred financing costs, net | 721 | 618 |
Leasing commissions, net | 455 | 483 |
Deferred tax asset | 610 | 478 |
Fair value of interest rate swaps | 1,352 | 258 |
Other | 274 | 255 |
Other assets, net | $ 25,210 | $ 20,653 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Thousands | Dec. 28, 2017USD ($)real_estate_property | Dec. 31, 2017USD ($)real_estate_property | Mar. 31, 2018USD ($) | Dec. 27, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable | $ 13,917 | $ 16,018 | ||
Note receivable, payments due | 1,900 | |||
Notes Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable | $ 5,000 | |||
Promissory Notes, Secured by Accounts Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable | $ 8,750 | $ 8,750 | ||
Receivable with imputed interest, discount | $ 2,700 | $ 2,700 | ||
Promissory Notes, Secured By Facilities Owned By Borrower [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable | $ 2,200 | |||
Minimum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Note receivable interest rate | 12.00% | |||
Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Note receivable interest rate | 16.00% | |||
Specialty Hospital [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of properties used to secure notes by borrower | real_estate_property | 2 | 2 |
Other Assets - VIEs (Details)
Other Assets - VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] $ in Millions | Mar. 31, 2018USD ($) |
Notes Receivable [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | $ 5 |
Maximum Exposure to Loss | 5 |
Promissory Notes, Secured by Accounts Receivable [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 8.8 |
Maximum Exposure to Loss | 8.8 |
Promissory Notes, Secured By Facilities Owned By Borrower 1 [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 1.5 |
Maximum Exposure to Loss | 1.5 |
Promissory Notes, Secured By Facilities Owned By Borrower 2 [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 0.7 |
Maximum Exposure to Loss | $ 0.7 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage note receivable | $ 10,633 | $ 10,633 |
Notes receivable | 16,018 | 13,917 |
Interest rate swap asset | 1,352 | 258 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage note receivable | 10,633 | 10,633 |
Notes receivable | 16,018 | 13,917 |
Carrying Value [Member] | Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 1,352 | 258 |
Interest rate swap liability | 119 | 0 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage note receivable | 10,633 | 10,633 |
Notes receivable | 16,029 | 13,828 |
Fair Value [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 1,352 | 258 |
Interest rate swap liability | $ 119 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 03, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Subsequent Event [Line Items] | |||
Dividend declared (in dollars per share) | $ 0.3975 | $ 0.3875 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividend declared (in dollars per share) | $ 0.40 |