Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 22, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 1-11314 | |
Entity Registrant Name | LTC PROPERTIES INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 71-0720518 | |
Entity Address, Address Line One | 2829 Townsgate Road, Suite 350 | |
Entity Address, City or Town | Westlake Village | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91361 | |
City Area Code | 805 | |
Local Phone Number | 981-8655 | |
Title of 12(b) Security | Common stock, $.01 par value | |
Trading Symbol | LTC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,242,225 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000887905 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Land | $ 127,774 | $ 126,703 |
Buildings and improvements | 1,320,990 | 1,295,899 |
Accumulated depreciation and amortization | (339,833) | (312,642) |
Operating real estate property, net | 1,108,931 | 1,109,960 |
Properties held-for-sale, net of accumulated depreciation: 2020-$0; 2019-$35,113 | 26,856 | |
Real property investments, net | 1,108,931 | 1,136,816 |
Mortgage loans receivable, net of loan loss reserve: 2020-$2,596; 2019-$2,560 | 257,671 | 254,099 |
Real estate investments, net | 1,366,602 | 1,390,915 |
Notes receivable, net of loan loss reserve: 2020-$144; 2019-$181 | 14,297 | 17,927 |
Investments in unconsolidated joint ventures | 7,069 | 19,003 |
Investments, net | 1,387,968 | 1,427,845 |
Other assets: | ||
Cash and cash equivalents | 22,811 | 4,244 |
Debt issue costs related to bank borrowings | 1,546 | 2,164 |
Interest receivable | 31,248 | 26,586 |
Straight-line rent receivable | 24,374 | 45,703 |
Lease incentives | 2,401 | 2,552 |
Prepaid expenses and other assets | 6,896 | 5,115 |
Total assets | 1,477,244 | 1,514,209 |
LIABILITIES | ||
Bank borrowings | 89,900 | 93,900 |
Senior unsecured notes, net of debt issue costs: 2020-$696; 2019-$812 | 574,444 | 599,488 |
Accrued interest | 3,300 | 4,983 |
Accrued expenses and other liabilities | 30,779 | 30,412 |
Total liabilities | 698,423 | 728,783 |
Stockholders' equity: | ||
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2020-39,242; 2019-39,752 | 392 | 398 |
Capital in excess of par value | 851,000 | 867,346 |
Cumulative net income | 1,371,202 | 1,293,482 |
Cumulative distributions | (1,452,177) | (1,384,283) |
Total LTC Properties, Inc. stockholders' equity | 770,417 | 776,943 |
Non-controlling interests | 8,404 | 8,483 |
Total equity | 778,821 | 785,426 |
Total liabilities and equity | $ 1,477,244 | $ 1,514,209 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Properties held-for-sale, accumulated depreciation | $ 0 | $ 35,113 |
Mortgage loans receivable, loan loss reserve | 2,596 | 2,560 |
Notes receivable, loan loss reserve | $ 144 | $ 181 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000 | 60,000 |
Common stock, shares issued | 39,242 | 39,752 |
Common stock, shares outstanding | 39,242 | 39,752 |
Senior Unsecured Notes | ||
Debt issue costs, net | $ 696 | $ 812 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Rental income | $ 30,010 | $ 38,665 | $ 88,320 | $ 114,566 |
Interest income from mortgage loans | 7,890 | 7,646 | 23,487 | 22,308 |
Interest and other income | 273 | 808 | 1,257 | 1,967 |
Total revenues | 38,173 | 47,119 | 113,064 | 138,841 |
Expenses: | ||||
Interest expense | 7,361 | 7,827 | 22,617 | 23,004 |
Depreciation and amortization | 9,766 | 9,932 | 29,232 | 29,399 |
Impairment charges | 941 | 941 | ||
(Recovery) provision for doubtful accounts | (2) | (14) | (1) | 153 |
Transaction costs | 63 | 75 | 197 | 275 |
Property tax expense | 3,351 | 4,270 | 11,685 | 12,566 |
General and administrative expenses | 4,814 | 4,745 | 14,494 | 13,912 |
Total expenses | 26,294 | 26,835 | 79,165 | 79,309 |
Other operating income: | ||||
Gain on sale of real estate, net | 30 | 6,236 | 44,073 | 6,736 |
Operating income | 11,909 | 26,520 | 77,972 | 66,268 |
Gain from property insurance proceeds | 373 | 373 | ||
Loss on unconsolidated joint ventures | (620) | |||
Income from unconsolidated joint ventures | 56 | 760 | 287 | 1,973 |
Net income | 12,338 | 27,280 | 78,012 | 68,241 |
Income allocated to non-controlling interests | (121) | (88) | (292) | (257) |
Net income attributable to LTC Properties, Inc. | 12,217 | 27,192 | 77,720 | 67,984 |
Income allocated to participating securities | (103) | (112) | (339) | (298) |
Net income available to common stockholders | $ 12,114 | $ 27,080 | $ 77,381 | $ 67,686 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.31 | $ 0.68 | $ 1.97 | $ 1.71 |
Diluted (in dollars per share) | $ 0.31 | $ 0.68 | $ 1.97 | $ 1.69 |
Weighted average shares used to calculate earnings per common share: | ||||
Basic (in shares) | 39,061 | 39,586 | 39,218 | 39,565 |
Diluted (in shares) | 39,112 | 39,965 | 39,269 | 39,944 |
Dividends declared and paid per common share | $ 0.57 | $ 0.57 | $ 1.71 | $ 1.71 |
Comprehensive Income: | ||||
Net income | $ 12,338 | $ 27,280 | $ 78,012 | $ 68,241 |
Comprehensive income | $ 12,338 | $ 27,280 | $ 78,012 | $ 68,241 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | ParentCumulative Effect of Adoption | ParentAs Adjusted Balance | Parent | Common StockAs Adjusted Balance | Common Stock | Capital in Excess of Par ValueAs Adjusted Balance | Capital in Excess of Par Value | Cumulative Net IncomeCumulative Effect of Adoption | Cumulative Net IncomeAs Adjusted Balance | Cumulative Net Income | Cumulative DistributionsAs Adjusted Balance | Cumulative Distributions | Non-controlling InterestsAs Adjusted Balance | Non-controlling Interests | Cumulative Effect of Adoption | As Adjusted Balance | Total |
Balance at beginning of period at Dec. 31, 2018 | $ (42,808) | $ 782,682 | $ 825,490 | $ 397 | $ 397 | $ 862,712 | $ 862,712 | $ (42,808) | $ 1,212,956 | $ 1,255,764 | $ (1,293,383) | $ (1,293,383) | $ 7,481 | $ 7,481 | $ (42,808) | $ 790,163 | $ 832,971 |
Balance (in shares) at Dec. 31, 2018 | 39,657 | 39,657 | |||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,631) | (22,631) | (22,631) | ||||||||||||||
Vesting of performance-based stock units | (300) | (300) | (300) | ||||||||||||||
Vesting of performance-based stock units (in shares) | 48 | ||||||||||||||||
Issuance of restricted stock | (1) | (1) | (1) | ||||||||||||||
Issuance of restricted stock (in shares) | 78 | ||||||||||||||||
Stock-based compensation expense | 1,689 | 1,689 | 1,689 | ||||||||||||||
Net income | 20,346 | 20,346 | 81 | 20,427 | |||||||||||||
Non-controlling interests contributions | 919 | 919 | |||||||||||||||
Non-controlling interest distributions | (89) | (89) | |||||||||||||||
Other | (2,024) | (2,024) | (2,024) | ||||||||||||||
Other (in shares) | (44) | ||||||||||||||||
Balance at end of period at Mar. 31, 2019 | 779,761 | $ 397 | 862,376 | 1,233,302 | (1,316,314) | 8,392 | 788,153 | ||||||||||
Balance (in shares) at Mar. 31, 2019 | 39,739 | ||||||||||||||||
Balance at beginning of period at Dec. 31, 2018 | $ (42,808) | $ 782,682 | 825,490 | $ 397 | $ 397 | $ 862,712 | 862,712 | $ (42,808) | $ 1,212,956 | 1,255,764 | $ (1,293,383) | (1,293,383) | $ 7,481 | 7,481 | $ (42,808) | $ 790,163 | 832,971 |
Balance (in shares) at Dec. 31, 2018 | 39,657 | 39,657 | |||||||||||||||
Equity activity | |||||||||||||||||
Net income | 68,241 | ||||||||||||||||
Balance at end of period at Sep. 30, 2019 | 785,434 | $ 398 | 865,721 | 1,280,940 | (1,361,625) | 8,460 | 793,894 | ||||||||||
Balance (in shares) at Sep. 30, 2019 | 39,752 | ||||||||||||||||
Balance at beginning of period at Mar. 31, 2019 | 779,761 | $ 397 | 862,376 | 1,233,302 | (1,316,314) | 8,392 | 788,153 | ||||||||||
Balance (in shares) at Mar. 31, 2019 | 39,739 | ||||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,653) | (22,653) | (22,653) | ||||||||||||||
Issuance of restricted stock | (6) | (6) | (6) | ||||||||||||||
Issuance of restricted stock (in shares) | 8 | ||||||||||||||||
Stock-based compensation expense | 1,623 | 1,623 | 1,623 | ||||||||||||||
Net income | 20,446 | 20,446 | 88 | 20,534 | |||||||||||||
Non-controlling interests contributions | 46 | 46 | |||||||||||||||
Non-controlling interest distributions | (87) | (87) | |||||||||||||||
Balance at end of period at Jun. 30, 2019 | 779,171 | $ 397 | 863,993 | 1,253,748 | (1,338,967) | 8,439 | 787,610 | ||||||||||
Balance (in shares) at Jun. 30, 2019 | 39,747 | ||||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,658) | (22,658) | (22,658) | ||||||||||||||
Stock option exercises | 123 | $ 1 | 122 | 123 | |||||||||||||
Stock option exercises (in shares) | 5 | ||||||||||||||||
Stock-based compensation expense | 1,626 | 1,626 | 1,626 | ||||||||||||||
Net income | 27,192 | 27,192 | 88 | 27,280 | |||||||||||||
Non-controlling interest distributions | (67) | (67) | |||||||||||||||
Other | (20) | (20) | (20) | ||||||||||||||
Balance at end of period at Sep. 30, 2019 | 785,434 | $ 398 | 865,721 | 1,280,940 | (1,361,625) | 8,460 | 793,894 | ||||||||||
Balance (in shares) at Sep. 30, 2019 | 39,752 | ||||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,658) | (22,658) | (22,658) | ||||||||||||||
Stock-based compensation expense | 1,625 | 1,625 | 1,625 | ||||||||||||||
Net income | 12,542 | 12,542 | 89 | 12,631 | |||||||||||||
Non-controlling interest distributions | (66) | (66) | |||||||||||||||
Balance at end of period at Dec. 31, 2019 | 776,943 | $ 398 | 867,346 | 1,293,482 | (1,384,283) | 8,483 | 785,426 | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 39,752 | ||||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,581) | (22,581) | (22,581) | ||||||||||||||
Vesting of performance-based stock units | (586) | (586) | (586) | ||||||||||||||
Vesting of performance-based stock units (in shares) | 82 | ||||||||||||||||
Issuance of restricted stock | $ 1 | (1) | |||||||||||||||
Issuance of restricted stock (in shares) | 76 | ||||||||||||||||
Repurchase of common stock | (18,012) | $ (6) | (18,006) | (18,012) | |||||||||||||
Repurchase of common stock (in shares) | (616) | ||||||||||||||||
Stock-based compensation expense | 1,777 | 1,777 | 1,777 | ||||||||||||||
Net income | 63,633 | 63,633 | 89 | 63,722 | |||||||||||||
Non-controlling interest distributions | (146) | (146) | |||||||||||||||
Other | (3,545) | $ (1) | (3,544) | (3,545) | |||||||||||||
Other (in shares) | (76) | ||||||||||||||||
Balance at end of period at Mar. 31, 2020 | 797,629 | $ 392 | 847,572 | 1,357,115 | (1,407,450) | 8,426 | 806,055 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 39,218 | ||||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | 776,943 | $ 398 | 867,346 | 1,293,482 | (1,384,283) | 8,483 | 785,426 | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 39,752 | ||||||||||||||||
Equity activity | |||||||||||||||||
Net income | 78,012 | ||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 770,417 | $ 392 | 851,000 | 1,371,202 | (1,452,177) | 8,404 | 778,821 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 39,242 | ||||||||||||||||
Balance at beginning of period at Mar. 31, 2020 | 797,629 | $ 392 | 847,572 | 1,357,115 | (1,407,450) | 8,426 | 806,055 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 39,218 | ||||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,359) | (22,359) | (22,359) | ||||||||||||||
Issuance of restricted stock | (7) | (7) | (7) | ||||||||||||||
Issuance of restricted stock (in shares) | 25 | ||||||||||||||||
Stock-based compensation expense | 1,761 | 1,761 | 1,761 | ||||||||||||||
Net income | 1,870 | 1,870 | 82 | 1,952 | |||||||||||||
Non-controlling interest distributions | (97) | (97) | |||||||||||||||
Balance at end of period at Jun. 30, 2020 | 778,894 | $ 392 | 849,326 | 1,358,985 | (1,429,809) | 8,411 | 787,305 | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 39,243 | ||||||||||||||||
Equity activity | |||||||||||||||||
Common stock cash distributions | (22,368) | (22,368) | (22,368) | ||||||||||||||
Stock-based compensation expense | 1,693 | 1,693 | 1,693 | ||||||||||||||
Net income | 12,217 | 12,217 | 121 | 12,338 | |||||||||||||
Non-controlling interest distributions | (128) | (128) | |||||||||||||||
Other | (19) | (19) | (19) | ||||||||||||||
Other (in shares) | (1) | ||||||||||||||||
Balance at end of period at Sep. 30, 2020 | $ 770,417 | $ 392 | $ 851,000 | $ 1,371,202 | $ (1,452,177) | $ 8,404 | $ 778,821 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 39,242 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF EQUITY | |||||||
Common Stock cash distributions | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
OPERATING ACTIVITIES: | ||
Net income | $ 78,012 | $ 68,241 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 29,232 | 29,399 |
Stock-based compensation expense | 5,231 | 4,938 |
Impairment charges | 941 | |
Gain on sale of real estate, net | (44,073) | (6,736) |
Loss on unconsolidated joint ventures | 620 | |
Income from unconsolidated joint ventures | (287) | (1,973) |
Income distributions from unconsolidated joint ventures | 249 | 2,577 |
Straight-line rental income | (1,701) | (3,598) |
Adjustment for collectibility of rental income and lease incentives | 23,214 | 1,926 |
Lease incentives funded | (50) | (322) |
Amortization of lease incentives | 317 | 281 |
(Recovery) provision for doubtful accounts | (1) | 153 |
Other non-cash items, net | 772 | 760 |
Increase in interest receivable | (4,662) | (4,367) |
Decrease in accrued interest payable | (1,683) | (184) |
Net change in other assets and liabilities | (502) | (1,003) |
Net cash provided by operating activities | 85,629 | 90,092 |
INVESTING ACTIVITIES: | ||
Investment in real estate properties | (13,581) | (38,334) |
Investment in real estate developments | (13,384) | (15,052) |
Investment in real estate capital improvements | (3,955) | (2,121) |
Capitalized interest | (354) | (441) |
Proceeds from sale of real estate, net | 72,141 | 8,068 |
Investment in real estate mortgage loans receivable | (4,176) | (10,919) |
Principal payments received on mortgage loans receivable | 565 | 565 |
Investments in unconsolidated joint ventures | (6,398) | (394) |
Proceeds from liquidation of investments in unconsolidated joint ventures | 17,758 | 6,601 |
Advances and originations under notes receivable | (1,366) | (8,531) |
Principal payments received on notes receivable | 4,732 | 3,446 |
Net cash provided by (used in) investing activities | 51,982 | (57,112) |
FINANCING ACTIVITIES: | ||
Bank borrowings | 24,000 | 73,400 |
Repayment of bank borrowings | (28,000) | (20,000) |
Principal payments on senior unsecured notes | (25,160) | (14,667) |
Stock repurchase plan | (18,012) | |
Stock option exercises | 123 | |
Distributions paid to stockholders | (67,894) | (68,241) |
Contribution from non-controlling interests | 46 | |
Distributions paid to non-controlling interests | (371) | (243) |
Financing costs paid | (35) | (41) |
Withheld vested restricted stock and performance-based stock units | (3,564) | (2,047) |
Other | (8) | (6) |
Net cash used in financing activities | (119,044) | (31,676) |
Increase in cash, cash equivalents and restricted cash | 18,567 | 1,304 |
Cash, cash equivalents and restricted cash, beginning of period | 4,244 | 4,764 |
Cash, cash equivalents and restricted cash, end of period | 22,811 | 6,068 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 23,531 | 22,431 |
Non-cash investing and financing transactions: | ||
Right of use asset | 1,354 | |
Lease liability | 1,354 | |
Reclassification of notes receivable to lease incentives | $ 300 | $ 200 |
General
General | 9 Months Ended |
Sep. 30, 2020 | |
General | |
General | 1. Genera l LTC Properties, Inc., a health care real estate investment trust (“REIT”), was incorporated on May 12, 1992 in the State of Maryland and commenced operations on August 25, 1992. We invest primarily in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including mezzanine lending. We conduct and manage our business as one operating segment, rather than multiple operating segments, for internal reporting and internal decision-making purposes. Our primary objectives are to create, sustain and enhance stockholder equity value and provide current income for distribution to stockholders through real estate investments in seniors housing and health care properties managed by experienced operators. Our primary seniors housing and health care property classifications include skilled nursing centers (“SNF”), assisted living communities (“ALF”), independent living communities (“ILF”), memory care communities (“MC”) and combinations thereof. To meet these objectives, we attempt to invest in properties that provide opportunity for additional value and current returns to our stockholders and diversify our investment portfolio by geographic location, operator, property classification and form of investment. We have prepared consolidated financial statements included herein without audit and in the opinion of management have included all adjustments necessary for a fair presentation of the consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to rules and regulations governing the presentation of interim financial statements. The accompanying consolidated financial statements include the accounts of our company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results for a full year. No provision has been made for federal or state income taxes. Our company qualifies as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As such, we generally are not taxed on income that is distributed to our stockholders. New Accounting Pronouncements New Accounting Standards Adopted by Our Company In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), Leases Topic 842, Leases ● Modify the accounting and lease classification criteria; ● On a quarterly basis, on an individual lease basis, assess the collectibility of substantially all of the lease payments through maturity. If collectibility is not probable, the lease income recorded during the period would be limited to lesser of the income that would have been recognized if collection were probable, and the lease payments received; and ● Exclude the lessor costs that are directly paid by the lessee to third parties on lessor’s behalf from variable payments. However, the lessor costs that are paid by the lessor and reimbursed by the lessee are required to be included in variable payments. As a result of adopting ASU 2016-02 on January 1, 2019, using the modified retrospective transition approach, we evaluated the collectibility of our lease payments and determined that the level of collectibility certainty cannot be achieved for certain operators. Accordingly, we recognized a cumulative effect adjustment to equity of $42,808,000. Additionally, we now report real estate taxes that are reimbursed by our operators as Rental income Property tax expense Consolidated Statements of Income and Comprehensive Income In April 2020, the FASB staff released guidance regarding accounting for lease concessions in response to the novel coronavirus (“COVID-19”) pandemic. The FASB staff guidance indicates that lessors could elect an accounting policy to not evaluate whether rent concessions provided in response to the COVID-19 pandemic are lease modifications. When only the timing of payments is impacted by the rent deferrals, but the amount of the consideration is substantially the same as required by the original lease agreement, the FASB listed two methods for lessors to account for the rent deferrals. We elected the first of the following two methods: ● Account for the rent deferrals as if there were no changes made to the lease agreement. Accordingly, increase the lease receivable and continue to recognize income. ● Account for the rent deferrals as variable lease payments. In 2016, the FASB issued ASU No. 2016-13 , Measurement of Credit Losses on Financial Instruments We adopted ASU 2016-13 on January 1, 2020 and determined our Mortgage loans receivable Notes receivable . The expected credit losses for our financial instruments that are within the scope of ASU 2016-13 are as follows (in thousands): Increase /(Decrease) Balance in Expected Balance Balance Sheet at Credit Loss at Description Location 12/31/2019 During the Quarter 9/30/2020 Expected credit losses for mortgage loans receivable Mortgage loans receivable, net of loan loss reserve $ 2,560 $ 36 $ 2,596 Expected credit losses for notes receivable Notes receivable, net of loan loss reserve $ 181 $ (37) $ 144 We elected not to measure an allowance for expected credit losses on accrued interest receivable under the expected credit loss standard as we have a policy in place to reserve or write off accrued interest receivable in a timely manner through our quarterly review of the loan and property performance. Therefore, we elected the policy to write off accrued interest receivable by reversing interest income and/or recognizing credit loss expense. As of September 30, 2020, the total balance of accrued interest receivable of $31,248,000 was not included in the measurement of expected credit loss. For the three and nine months ended September 30, 2020 and 2019, Company did not recognize any write-off related to accrued interest receivable. |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate Investments | |
Real Estate Investments | 2. Real Estate Investments Assisted living communities, independent living communities, memory care communities and combinations thereof are included in the assisted living property classification (collectively “ALF”). Any reference to the number of properties or facilities, number of units, number of beds, number of operators and yield on investments in real estate are unaudited and outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board. Owned Properties. Our Owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 10 to 15 years . Each lease is a triple net lease which requires the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities. Many of the leases contain renewal options. The leases provide for fixed minimum base rent during the initial and renewal periods. The majority of our leases contain provisions for specified annual increases over the rents of the prior year that are generally computed in one of four ways depending on specific provisions of each lease: (i) a specified percentage increase over the prior year’s rent, generally between 2.0% and 2.5% ; (ii) a calculation based on the Consumer Price Index; (iii) as a percentage of facility net patient revenues in excess of base amounts; or (iv) specific dollar increases. Our leases that contain fixed annual rental escalations and/or have annual rental escalations that are contingent upon changes in the Consumer Price Index, are generally recognized on a straight-line basis over the minimum lease period. Certain leases have annual rental escalations that are contingent upon changes in the gross operating revenues of the property. This revenue is not recognized until the appropriate contingencies have been resolved. The following table summarizes our investments in owned properties at September 30, 2020 (dollar amounts in thousands) Average Percentage Number Number of Investment Gross of of SNF ALF per Type of Property Investment Investment Properties (1) Beds Units Bed/Unit Assisted Living $ 880,307 60.8 % 107 — 6,164 $ 142.81 Skilled Nursing 557,097 38.4 % 51 6,277 212 $ 85.85 Other (2) 11,360 0.8 % 1 118 — — Total $ 1,448,764 100.0 % 159 6,395 6,376 (1) We own properties in 27 states that are leased to 29 different operators. (2) Includes three parcels of land held-for-use, and one behavioral health care hospital. Future minimum base rents receivable under the remaining non-cancelable terms of operating leases excluding the effects of straight-line rent receivable, amortization of lease incentives and renewal options are as follows (in thousands): Cash Rent (1) 2020 $ 33,758 2021 143,139 2022 131,294 2023 132,827 2024 131,766 Thereafter 632,675 (1) Represents contractual cash rent, except for Anthem Memory Care (“Anthem”) master lease which is based on estimated cash payments. See below for more disclosure relating to Anthem. An affiliate of Senior Lifestyle Corporation (“Senior Lifestyle”) operates 23 properties under a master lease with a combination of independent living, assisted living and memory care units. Senior Lifestyle was provided deferral of partial rent in April 2020 and failed to pay full rent during the second quarter of 2020. In accordance with ASC 842, we evaluated the collectibility of receiving substantially all of our lease payments from the Senior Lifestyle master lease through maturity and determined that we did not have the level of certainty required by the standard. Accordingly, we wrote-off a total $17,742,000 of straight-line rent receivable and lease incentives related to this master lease during the second quarter of 2020 and we accounted for the Senior Lifestyle master lease on a cash basis effective July 2020. Contractual rent for April through September 2020 was $9,121,000 of which we collected $5,325,000. In October 2020, we received $1,341,000 of their contractual rent of $1,561,000. The outstanding accounts receivable balance on our Consolidated Balance Sheets During the third quarter of 2020, an operator paid $542,000 of its contractual rent of $1,299,000. Additionally, during the three months ended September 30, 2020, we consolidated our two master leases with the operator into one combined master lease. Under the new combined master lease, we agreed to abate $570,000 of third quarter rent along with $80,000 that had been deferred in second quarter of 2020, totaling $650,000. Additionally, the new combined master lease allows the operator to defer rent as needed through March 31, 2021. In September 2020, the operator deferred $186,000 of its $374,000 contractual rent. During the three months ended September 30, 2020, we recorded an impairment charge of $941,000 related to an assisted living community that was operated by the operator. The community was closed in October 2020 and we are evaluating our options for this community. In accordance with ASC 842, we evaluated the collectibility of receiving substantially all of our lease payments under our master lease with the operator through maturity and determined that we did not have the level of certainty required by the standard. Accordingly, we wrote-off $1,156,000 of straight-line rent receivable related to this master lease during the third quarter of 2020. On August 10, 2020, in the Quarterly Report on Form 10-Q, Genesis Healthcare, Inc. (“Genesis”) reported doubt regarding its ability to continue as a going concern. Accordingly, in accordance with ASC 842, we evaluated the collectibility of receiving substantially all of our lease payments from the Genesis master lease through maturity and determined that we did not have the level of certainty required by the standard. Accordingly, we wrote-off $4,316,000 of straight-line rent receivable related to this master lease during the third quarter of 2020. Genesis is current on rent payments through October 2020. Anthem operates 11 memory care communities under a master lease and was placed in default in 2017 resulting from Anthem’s partial payment of its minimum rent. However, we did not enforce our rights and remedies pertaining to the event of default, under the stipulation that Anthem achieves sufficient performance and pays agreed upon rent. In accordance with ASC 842 lease accounting guidance, at January 1, 2019, we evaluated the collectibility of straight-line rent receivable and lease incentive balances related to Anthem and determined that it was not probable that we would collect substantially all of the contractual lease obligations through maturity. Accordingly, we wrote-off the balances to equity as of January 1, 2019, as required by the ASC 842 transition guidance. We continue to evaluate the collectibility of our Anthem master lease on a quarterly basis. We currently anticipate that Anthem will pay $9,900,000 of annual cash rent during 2020. However, COVID-19 may adversely impact Anthem’s operating cash flow and ability to pay rent. Anthem is current on 2020 rent payments through October 2020. Preferred Care, Inc. (“Preferred Care”) and affiliated entities filed for Chapter 11 bankruptcy in 2017 as a result of a multi-million-dollar judgment in a lawsuit in Kentucky against Preferred Care and certain affiliated entities. Preferred Care leased 24 properties (“Properties”) under two master leases from us and the Preferred Care operating entities that sublease those Properties did not file for bankruptcy. In accordance with ASC 842 lease accounting guidance, at January 1, 2019, we evaluated the collectibility of straight-line rent receivable and lease incentive balances related to Preferred Care and determined it was not probable that we would collect substantially all of the contractual lease obligations through maturity. Accordingly, we wrote-off the balances to equity as of January 1, 2019, as required by the ASC 842 transition guidance. Preferred Care did not affirm our master leases and subsequently filed for Chapter 7 bankruptcy in 2019. During the fourth quarter of 2019, we entered into multiple contracts to sell the Properties, all of which were completed during the first quarter of 2020. The combined net proceeds from the sales, including the 2019 transactions, was approximately $77,900,000 resulting in a total gain of approximately $44,000,000. The Properties had a combined net book value of $35,600,000. The 21 properties sold in the first quarter of 2020, which included 2,411 beds in Arizona, Colorado, Iowa, Kansas and Texas, were sold through multiple transactions and generated net proceeds of approximately $72,100,000. These 21 properties had a combined net book value of $29,100,000 and resulted in total gain on sale of $44,073,000. Senior Care Centers, LLC and affiliates and subsidiaries (“Senior Care”) filed for Chapter 11 bankruptcy as a result of lease terminations from certain landlords and on-going operational challenges in December 2018. Senior Care did not pay us December 2018 rent and accordingly, in December 2018, we placed Senior Care on a cash basis. In accordance with ASC 842 lease accounting guidance, at January 1, 2019, we evaluated the collectibility of the straight-line rent receivable and lease incentive balance related to Senior Care and determined it was not probable that we would collect substantially all of the contractual lease obligations through maturity. Accordingly, we wrote-off the balances to equity as of January 1, 2019, as required by the ASC 842 transition guidance. During 2019, we received a court ordered reimbursement from Senior Care for the December 2018 unpaid rent, late fees and legal costs totaling $1,596,000. In March 2020, Senior Care emerged from bankruptcy and affirmed our master lease. We continue to evaluate the collectibility of our Senior Care master lease on a quarterly basis. Senior Care is current on all its rent, real estate property tax escrow and maintenance deposits through October 2020. During the third quarter of 2020, we consolidated our four leases with Brookdale Senior Living Communities, Inc (“Brookdale”) into one master lease and extended the term by one year to December 31, 2021. The master lease provides three renewal options consisting of a four-year renewal option, a five-year renewal option and a 10-year renewal option. The notice period for the first renewal option is January 1, 2021 to April 30, 2021. The economic terms of rent remain the same as the consolidated rent terms under the previous four separate lease agreements. The following table summarizes components of our rental income for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Rental Income 2020 2019 2020 2019 Base cash rental income $ 32,006 (1) $ 33,754 $ 98,357 (1) $ 100,687 Variable cash rental income 3,356 (2) 3,926 (2) 11,793 (2) 12,488 (2) Straight-line rent 228 1,085 1,701 3,598 Adjustment for collectability of rental income and lease incentives (5,472) (3) — (23,214) (4) (1,926) Amortization of lease incentives (108) (100) (317) (281) Total $ 30,010 $ 38,665 $ 88,320 $ 114,566 (1) Decreased primarily due to reduction of rent from Preferred Care portfolio sale and Senior Lifestyle rent shortfall and abated and deferred rent partially offset by increase in rent from acquisitions and completion of development projects and contractual rent increases. (2) The variable rental income for the three and nine months ended September 30, 2020, includes contingent rental income of $4 and $108 , respectively, and reimbursement of real estate taxes by our lessees of $3,352 and $11,685 , respectively. The variable rental income for the three and nine months ended September 30, 2019 includes contingent rental income of $77 and $394 , respectively, and reimbursement of real estate taxes by our lessees of $3,849 and $12,094 , respectively. (3) Represents the write-off of the Genesis and another operator straight-line rent receivable balances. (4) Represents the write-off of the Senior Lifestyle straight-line rent receivable and lease incentive balances and (3) above. Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements (dollar amount in thousands): Type Number of of Gross Carrying Option State Property Properties Investments Value Window California ALF/MC 2 $ 38,895 $ 35,836 2024-2029 California ALF 2 30,609 17,088 2021-TBD (1) Florida MC 1 14,340 12,631 2028-2029 Kentucky and Ohio MC 2 30,152 27,320 2028-2029 Texas MC 2 25,265 23,870 2025-2027 South Carolina ALF/MC 1 11,680 10,358 2028-2029 Total $ 150,941 $ 127,103 (1) The option window ending date will be either 24 months or 48 months after the option window commences, based on certain contingencies. On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, and on March 13, 2020, the United States declared a national emergency with regard to COVID-19. As required by ASC 842, we assess the collectibility of our lease payments through maturity on a quarterly basis. At September 30, 2020, in conjunction with the continued levels of uncertainty related to the adverse effects of COVID-19, we assessed the probability of collecting substantially all of our lease payments through maturity and concluded that we did not have sufficient information available to evaluate the impact of COVID-19 on the collectibility of our lease payments. The extent to which COVID-19 could impact our operators and the collectibility of our future lease payments will depend on the future developments including the financial impact significance and the duration of the pandemic. We will continue to evaluate the collectibility of our lease payments through maturity on a quarterly basis, including the financial impact of COVID-19. If we determine that we do not have the level of collectibility certainty required by ASC 842 related to certain operators, all or a portion of our straight- line rent receivable and other lease receivables will be written-off. In recognition of the unique conditions affecting our operators, we have agreed to rent deferrals for certain operators totaling $1,176,000, or 1.5% of contractual rent, for April through September 2020. Additionally, we granted rent deferrals of $566,000 for October 2020. Through October 2020, we have received $553,000 of rent deferral payments. The remaining $1,189,000 balance of deferred rent is due to LTC over the next 24 months or upon the operators’ receipt of government funds from the U.S. Coronavirus Aid, Relief, and Economic Security ACT (the “CARES Act”). Acquisitions and Developments: The following table summarizes our acquisitions for the nine months ended September 30, 2020 and 2019 (dollar amounts in thousands): Total Number Number Purchase Transaction Acquisition of of Year Type of Property Price Costs (1) Costs Properties Beds/Units 2020 Skilled Nursing (2) $ 13,500 $ 81 $ 13,581 1 140 2019 Assisted Living (3) $ 16,719 $ 176 $ 16,895 1 74 Skilled Nursing (4) 19,500 77 19,577 1 90 Land (5) 2,732 49 2,781 — — Total $ 38,951 $ 302 $ 39,253 2 164 (1) Represents cost associated with our acquisitions; however, upon adoption of ASU 2017-01, our acquisitions meet the definition of an asset acquisition resulting in capitalization of transaction costs to the properties’ basis. For our land purchases with forward development commitments, transaction costs are capitalized as part of construction in progress. Transaction costs per our Consolidated Statements of Income and Comprehensive Income represents current and prior year transaction costs due to timing and terminated transactions. (2) We acquired a SNF located in Texas. (3) We entered into a joint venture (“ JV”) (consolidated on our financial statements) to purchase an existing operational 74 -unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,971 in cash. Our economic interest in the real estate JV is approximately 95% . (4) We acquired a newly constructed 90 -bed SNF located in Missouri. (5) We acquired a parcel of land adjacent to an existing SNF in California. Additionally, we acquired a parcel of land and developed a 90 -bed SNF in Missouri. The commitment totals approximately $17,400 . During he following in development and improvement projects (in thousands) : Nine Months Ended September 30, 2020 2019 Type of Property Developments Improvements Developments Improvements Assisted Living Communities $ 4,491 $ 3,941 $ 10,266 $ 1,826 Skilled Nursing Centers 8,893 14 4,786 — Other — — — 295 Total $ 13,384 $ 3,955 $ 15,052 $ 2,121 Completed Developments. (dollar amounts in thousands): Number Type Number of of of Total Year Type of Project Properties Property Beds/Units State Investment 2020 Development 1 ALF/MC 78 Oregon (1) $ 18,447 Development 1 SNF 90 Missouri 13,272 Total 2 168 $ 31,719 2019 Development 1 SNF 143 Kentucky $ 24,496 Development 1 ILF/ALF/MC 110 Wisconsin 21,893 Total 2 253 $ 46,389 (1) Certificate of occupancy was received in March 2020, however, due to the COVID-19 pandemic, we consented to delay the opening of this community to September 2020. Properties Sold. (dollar amounts in thousands): Type Number Number of of of Sales Carrying Net Year State Properties Properties Beds/Units Price Value Gain 2020 N/A N/A — — $ — $ — $ 108 (1) Arizona SNF 1 194 12,550 2,229 10,292 Colorado SNF 3 275 15,000 4,271 10,364 Iowa SNF (2) 7 544 14,500 4,886 9,029 Kansas SNF 3 250 9,750 7,438 1,993 Texas SNF 7 1,148 23,000 10,260 12,287 Total 2020 (3) 21 2,411 $ 74,800 $ 29,084 $ 44,073 (3) 2019 N/A N/A — — $ — $ — $ 500 (4) Georgia SNF 1 148 7,920 1,639 6,236 Total 2019 1 148 $ 7,920 $ 1,639 $ 6,736 ( (1) Gain recognized from the $90 repayment of a holdback related to a property sold during the fourth quarter of 2019 and the reassessment adjustment of $18 from the holdback under the expected value model per ASC Topic 606, Contracts with Customers (“ASC 606”). (2) This transaction includes a holdback of $838 which is held in an interest-bearing account with an escrow holder on behalf of the buyer for potential specific losses. Using the expected value model per ASC 606, we estimated and recorded the holdback value of $471 . During the nine months ended September 30, 2020, we received $150 of the holdback. We reassessed the holdback under the expected value model and recorded an additional gain of $115 . (3) Properties sold within the Preferred Care portfolio. (4) Gain recognized from the repayment of a holdback related to a portfolio of six ALFs sold during the second quarter of 2018. Mortgage Loans. (dollar amounts in thousands) Type Percentage Number of Investment Gross of of SNF per Interest Rate (1) Maturity Investment Property Investment Loans (2) Properties (3) Beds Bed/Unit 9.9% 2043 $ 186,865 SNF 71.8 % 1 15 1,941 $ 96.27 9.2% 2045 38,853 SNF 14.9 % 1 4 501 $ 77.55 9.4% 2045 19,624 SNF 7.6 % 1 2 205 $ 95.73 9.6% 2045 14,925 SNF 5.7 % 1 1 157 $ 95.06 Total $ 260,267 100.0 % 4 22 2,804 $ 92.82 (1) The majority of the mortgage loans provide for annual increases in the interest rate after a certain time period increasing by 2.25% . (2) Some loans contain certain guarantees, provide for certain facility fees and the majority of the mortgage loans have a 30-year term. (3) The properties securing these mortgage loans are located in one state and are operated by one operator. The following table summarizes our mortgage loan activity for the nine months ended September 30, 2020 and 2019 (in thousands): Nine Months Ended September 30, 2020 2019 Amounts Origination/Funding Originations and funding under mortgage loans receivable $ 4,176 (1) $ 10,919 (2) Scheduled principal payments received (565) (565) Mortgage loan premium amortization (3) (3) Provision for loan loss reserve (36) (104) Net increase in mortgage loans receivable $ 3,572 $ 10,247 (1) During 2020, we funded an additional $2,000 under and existing mortgage loan. The incremental funding bears interest at 8.89% and escalating by 2.25% thereafter. (2) During 2019, we funded an additional $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41% fixed for two years and escalating by 2.25% thereafter. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2020 | |
Investment in Unconsolidated Joint Ventures | |
Investment in Unconsolidated Joint Ventures | 3. Investment in Unconsolidated Joint Ventures We had a preferred equity investment in an unconsolidated joint venture that owned four communities located in Arizona, providing independent living, assisted living and memory care services. During the fourth quarter of 2019, the JV signed a contract to sell the four properties comprising the JV (“Properties”). The contract was subject to standard due diligence and other contingencies to close, all of which were met in January 2020. Accordingly, based on the information available to us regarding alternatives and courses of action, we performed a recoverability test on the carrying value of our preferred equity investment and concluded that a portion of our preferred equity investment will not be recoverable. Therefore, we recorded an other than temporary impairment loss from investment in unconsolidated joint ventures of $5,500,000 and wrote our preferred equity investment down to its estimated fair value at December 31, 2019. Upon sale of the Properties, we received partial liquidation proceeds totaling $17,758,000 during the second and third quarters of 2020. During the nine months ended September 30, 2020, we incurred an additional $620,000 of loss. We anticipate receiving additional proceeds of $729,000 through March 31, 2021. During the nine months ended September 30, 2020, we provided preferred capital contribution commitments to two joint ventures. We determined that each of these JVs meets the accounting criteria to be considered a variable interest entity (“VIE”). We are not the primary beneficiary of the VIEs as we do not have both: 1) the power to direct the activities that most significantly affect the VIE’s economic performance, and 2) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. However, we do have significant influence over the JVs. Therefore, we accounted for the joint venture investments using the equity method of accounting. The following table provides information regarding these preferred equity investments: Type Type Total Contractual Number of of Preferred Cash of Investment Carrying State Properties Investment Return Portion Beds/ Units Commitment Value Washington UDP Preferred Equity (1) 12 % 7 % — $ — (1) $ 6,340 (1) Washington UDP Preferred Equity (2) 12 % 8 % — 13,000 (2) - (2) Total — $ 13,000 $ 6,340 (1) Invested $6,340 of preferred equity in an entity that will develop a 95 -unit ALF/MC in Washington. Our investment represents 15.5% of the estimated total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the internal rate of return (“IRR”) is 8% . After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging between 12% to 14% . (2) Entered into a preferred equity agreement in an entity that will develop and own a 267 -unit ILF/ALF in Washington. Our investment represents 11.6% of the estimated total investment. Upon the satisfaction of certain conditions which are projected to be met by year-end, LTC will invest $13,000 into the entity. The preferred equity investment will earn an initial cash rate of 8% and a 12% IRR. The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures for the nine months ended September 30, 2020 and 2019 (in thousands): Type of Capital Income Cash Interest Year Properties Contribution Recognized Received 2020 ALF/MC/ILF (1) $ 58 (1) $ 231 (1) $ 231 (1) UDP 6,340 (2) 56 (2) 18 (2) Total $ 6,398 $ 287 $ 249 2019 ALF/MC/ILF $ 394 (1) $ 614 (1) $ 1,166 (1) ALF/ILF/MC (3) — (3) 955 (3) 979 (3) ALF/MC (4) — (4) 404 (4) 432 (4) Total $ 394 $ 1,973 $ 2,577 (1) Relates to our preferred equity investment in Arizona discussed above with a total preferred return of 15% . During the nine months ended September 30, 2020, the properties comprising the JV were sold. (2) During the third quarter of 2020, we provided a total preferred equity investment of $6,340 to a JV for the development of a 95 -unit ALF and MC. (3) We had a $2,900 mezzanine loan commitment for a 99 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance. During the third quarter of 2019, the mezzanine loan was paid off. (4) We had a $3,400 mezzanine loan commitment for the development of a 127 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. During the first quarter of 2019, the mezzanine loan was paid off. |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Notes Receivable. | |
Notes Receivable | 4. Notes Receivable Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Mezzanine loans $ 8,566 $ 13,284 Other loans 5,875 4,824 Notes receivable reserve (144) (181) Total $ 14,297 $ 17,927 The following table summarizes our notes receivable activity for the nine months ended September 30, 2020 and 2019 (in thousands): Nine Months Ended September 30, 2020 2019 Advances under notes receivable $ 1,366 (1) $ 8,531 (2) Principal payments received under notes receivable (4,732) (3,446) Reclassified to lease incentives (300) (3) (200) (3) Notes receivable reserve 36 (48) Total $ (3,630) $ 4,837 (1) We originated a $1,250 note agreement, funding $1,000 with a commitment to fund $250 . The note bears interest at 5.0% . (2) We originated a $6,800 mezzanine loan commitment for the development of a 204 -unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months . Additionally, we originated a $1,400 note agreement, funding $1,124 with a commitment to fund $276 . The note bears interest at 7.0% . Further, we originated a $550 note agreement, funding $400 with a commitment to fund $150 . The note bears interest at 7.5% . (3) Represents interim working capital loans related to development projects which matured upon completion of the development projects and commencement of the master leases. |
Lease Incentives
Lease Incentives | 9 Months Ended |
Sep. 30, 2020 | |
Lease Incentives | |
Lease Incentives | 5. Lease Incentives Our lease incentive balances at September 30, 2020 and December 31, 2019 are as follows (in thousands): September 30, 2020 December 31, 2019 Non-contingent lease incentives $ 2,401 $ 2,552 The following table summarizes our lease incentives activity for the nine months ended September 30, 2020 and 2019 (in thousands) 2020 2019 Funding Amortization Adjustment Funding Amortization Adjustment Non-contingent lease incentives $ 50 $ (317) $ 115 (1) $ 322 $ (281) $ (11,893) (2) (1) We reclassified a $300 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. Additionally, we wrote-off $185 of lease incentive related to a master lease for which we determined it was not probable we will collect substantially all of the contractual lease obligations through maturity. See Note 2. Real Estate Investments for further discussion. (2) In accordance with ASC 842 lease standard adopted on January 1, 2019, we wrote-off $12,093 of lease incentives related to leases for which we determined it is not probable we will collect substantially all of the contractual lease obligation through maturity. See Note 1. General for further discussion. Additionally, we reclassified a $200 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. Non-contingent lease incentives represent payments made to our lessees for various reasons including entering into a new lease or lease amendments and extensions. Contingent lease incentives represent potential contingent earn-out payments that may be made to our lessees in the future, as part of our lease agreements. From time to time, we may commit to provide contingent payments to our lessees, upon our properties achieving certain rent coverage ratios. Once the contingent payment becomes probable and estimable, the contingent payment is recorded as a lease incentive. Lease incentives are amortized as a yield adjustment to rental income over the remaining life of the lease. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Debt Obligations | |
Debt Obligations | 6. Debt Obligations Bank Borrowings. We have an unsecured credit agreement that provides for a revolving aggregate commitment of the lenders of up to $600,000,000 with the opportunity to increase the commitment size of the credit agreement up to a total of $1,000,000,000 . The unsecured credit agreement matures on June 27, 2022 and provides for a one-year extension option at our discretion, subject to customary conditions. Based on our leverage at September 30, 2020, the facility provides for interest annually at LIBOR plus 115 basis points and a facility fee of 20 basis points. At September 30, 2020, we were in compliance with all covenants. Senior Unsecured Notes. The debt obligations by component as of September 30, 2020 and December 31, 2019 are as follows ( dollar amounts in thousands): At September 30, 2020 At December 31, 2019 Applicable Available Available Interest Outstanding for Outstanding for Debt Obligations Rate (1) Balance Borrowing Balance Borrowing Bank borrowings 1.33% $ 89,900 $ 510,100 $ 93,900 $ 506,100 Senior unsecured notes, net of debt issue costs 4.36% 574,444 — 599,488 21,500 Total 3.95% $ 664,344 $ 510,100 $ 693,388 $ 527,600 (1) Represents weighted average of interest rate as of September 30, 2020. Our borrowings and repayments are as follows (in thousands): Nine Months Ended September 30, 2020 2019 Debt Obligations Borrowings Repayments Borrowings Repayments Bank borrowings $ 24,000 $ (28,000) $ 73,400 $ (20,000) Senior unsecured notes — (25,160) — (14,667) Total $ 24,000 $ (53,160) $ 73,400 $ (34,667) |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity | |
Equity | 7. Equity Common Stock. During the nine months ended September 30, 2020 and 2019, we acquired 76,574 shares and 45,030 shares, respectively, of common stock held by employees who tendered owned shares to satisfy tax withholding obligations. Stock Repurchase Plan. Non-controlling Interests. As of September 30, 2020, we have the following consolidated VIEs (in thousands): Gross Investment Property Consolidated Non-Controlling Year Purpose Type State Assets Interests 2019 Owned real estate ALF/MC VA $ 16,895 $ 919 2018 Owned real estate ILF OR 14,400 2,858 2018 Owned real estate and development ALF/MC OR 18,447 1,081 2017 Owned real estate and development ILF/ALF/MC WI 22,007 2,305 2017 Owned real estate ALF/MC SC 11,680 1,241 Total $ 83,429 $ 8,404 Available Shelf Registration. Distributions. (in thousands) Nine Months Ended September 30, 2020 2019 Declared Paid Declared Paid Common Stock (1) $ 67,894 (2) $ 67,894 (2) $ 68,241 (3) $ 68,241 (3) (1) Represents $0.19 per share per month for the nine months ended September 30, 2020 and 2019. (2) Includes $586 related to the vesting of performance-based stock units. (3) Includes $300 related to the vesting of performance-based stock units. In October 2020, we declared a monthly cash dividend of $0.19 per share on our common stock for the months of October, November and December 2020, payable on October 30, November 30, and December 31, 2020, respectively, to stockholders of record on October 22, November 20, and December 23, 2020, respectively. Stock-Based Compensation Under our 2015 Equity Participation Plan (“the 2015 Plan”), 1,400,000 shares of common stock have been reserved for awards, including nonqualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2015 Plan are set by our compensation committee at its discretion. At September 30, 2020, we had 15,000 stock options outstanding and exercisable. During the nine months ended September 30, 2020 and 2019, no stock options were granted. The stock options exercised during the nine months ended September 30, 2020 and 2019 were as follows: Weighted Average Options Exercise Option Market Exercised Price Value Value (1) 2020 — $ — $ — $ — 2019 5,000 $ 24.65 $ 123,000 $ 233,000 (1) (1) As of exercise date. The following table summarizes our restricted stock and performance-based stock units activity for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 Outstanding, January 1 345,633 325,750 Granted 167,375 147,608 Vested (166,051) (1) (127,725) (2) Outstanding, September 30 346,957 345,633 (1) Includes 81,574 performance-based stock units. (2) Includes 48,225 performance-based stock units. During the nine months ended September 30, 2020 and 2019, we granted restricted stock and performance-based stock units under the 2015 Plan as follows: No. of Price per Year Shares/Units Share Vesting Period 2020 76,464 $ 48.95 ratably over 3 years 66,027 $ 49.98 TSR targets (1) 9,884 $ 38.45 May 27, 2021 15,000 $ 38.45 ratably over 3 years 167,375 2019 78,276 $ 46.54 ratably over 3 years 60,836 $ 46.54 TSR targets (1) 8,496 $ 44.73 May 29, 2020 147,608 (1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in 4 years with acceleration opportunity in 3 years . Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the nine months ended September 30, 2020 and 2019 were $5,231,000 and $4,938,000 , respectively. At September 30, 2020, the remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows (in thousands): Remaining Compensation Vesting Date Expense 2020 $ 1,781 2021 5,201 2022 2,729 2023 367 Total $ 10,078 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies At September 30, 2020, we had commitments as follows (in thousands): Total Investment 2020 Commitment Remaining Commitment Funding Funded Commitment Real estate properties Note 2. Real Estate Investments $ 28,713 (1) $ 12,487 $ 17,459 $ 11,254 Accrued incentives and earn-out liabilities (Note 5. Lease Incentives) 9,000 — — 9,000 Mortgage loans ( Note 2. Real Estate Investments 27,200 (2) 2,928 8,873 18,327 Joint venture investments ( Note 3. Investments in Unconsolidated Joint Ventures 13,000 — — 13,000 Notes receivable ( Note 4. Notes Receivable 1,854 1,275 1,275 579 Total $ 79,767 $ 16,690 $ 27,607 $ 52,160 (1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties. (2) Represents $9,200 of commitments to expand and renovate the seniors housing and health care properties securing the mortgage loans and $18,000 represents contingent funding upon the borrower achieving certain coverage ratios. Also, some of our lease agreements provide purchase options allowing the lessee to purchase the properties they currently lease from us. See Note 2. Real Estate Investments We are a party from time to time to various general and professional liability claims and lawsuits asserted against the lessees or borrowers of our properties, which in our opinion are not singularly or in the aggregate material to our results of operations or financial condition. These types of claims and lawsuits may include matters involving general or professional liability, which we believe under applicable legal principles are not our responsibility as a non-possessory landlord or mortgage holder. We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims. |
Major Operators
Major Operators | 9 Months Ended |
Sep. 30, 2020 | |
Major Operators | |
Major Operators | 9. Major Operators We have two operators that derive 10% or more of our combined rental revenue and interest income from mortgage loans. The following table sets forth information regarding our major operators as of September 30, 2020: Number of Number of Percentage of SNF ALF Total Total Operator SNF ALF Beds Units Revenue (1) Assets (2) Prestige Healthcare 24 — 2,922 93 19.8 % 18.0 % Senior Lifestyle Corporation (3) — 23 — 1,457 10.4 % 10.2 % Total 24 23 2,922 1,550 30.2 % 28.2 % (1) Includes rental income from owned properties and interest income from mortgage loans as of September 30, 2020 and excludes rental income from lessee reimbursement and sold properties. (2) Represents the net carrying value of the properties divided by the Total assets on the Consolidated Balance Sheets. (3) See Note 2. Real Estate Investments for further information regarding Senior Lifestyle. Our financial position and ability to make distributions may be adversely affected if Prestige Healthcare, Senior Lifestyle Corporation, or any of our lessees and borrowers face financial difficulties, including any bankruptcies, inability to emerge from bankruptcy, insolvency or general downturn in business of any such operator, impact upon services or occupancy levels due to COVID-19, or in the event any such operator does not renew and/or extend its relationship with us. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings per Share | |
Earnings per Share | 10. Earnings per Share The following table sets forth the computation of basic and diluted net income per share ( in thousands, except per share amounts Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income $ 12,338 $ 27,280 $ 78,012 $ 68,241 Less income allocated to non-controlling interests (121) (88) (292) (257) Less income allocated to participating securities: Non-forfeitable dividends on participating securities (103) (93) (294) (279) Income allocated to participating securities — (19) (45) (19) Total net income allocated to participating securities (1) (103) (112) (339) (298) Net income available to common stockholders 12,114 27,080 77,381 67,686 Effect of dilutive securities: Participating securities (2) — — — — Net income for diluted net income per share $ 12,114 $ 27,080 $ 77,381 $ 67,686 Shares for basic net income per share 39,061 39,586 39,218 39,565 Effect of dilutive securities: Stock options — 4 — 4 Performance-based stock units 51 375 51 375 Participating securities (2) — — — — Total effect of dilutive securities 51 379 51 379 Shares for diluted net income per share 39,112 39,965 39,269 39,944 Basic net income per share $ 0.31 $ 0.68 $ 1.97 $ 1.71 Diluted net income per share $ 0.31 $ 0.68 $ 1.97 $ 1.69 (1) Under the two-class method of computing earnings per share in accordance with GAAP, income (loss) allocated to participating securities is calculated independently for each quarter and year-to-date period. Therefore, the sum of the amounts for the quarter may not agree with the amounts for the year. (2) For the three and nine months ended September 30, 2020, and 2019, the participating securities have been excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | 11. Fair Value Measurements In accordance with the accounting guidance regarding the fair value option for financial assets and financial liabilities, entities are permitted to choose to measure certain financial assets and liabilities at fair value, with the change in unrealized gains and losses reported in earnings. We did not elect the fair value option for any of our financial assets and financial liabilities. The carrying amount of cash and cash equivalents approximates fair value because of the short-term maturity of these instruments. We do not invest our cash in auction rate securities. The carrying value and fair value of our financial instruments as of September 30, 2020 and December 31, 2019 assuming election of fair value for our financial assets and financial liabilities were as follows ( in thousands At September 30, 2020 At December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Mortgage loans receivable $ 257,671 $ 299,151 (1) $ 254,099 $ 312,824 (1) Bank borrowings 89,900 89,900 (2) 93,900 93,900 (2) Senior unsecured notes, net of debt issue costs 574,444 582,480 (3) 599,488 612,375 (3) (1) Our investment in mortgage loans receivable is classified as Level 3. The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments. The discount rate used to value our future cash inflows of the mortgage loans receivable at September 30, 2020 and December 31, 2019 was 10.0% and 9.0% , respectively. (2) Our bank borrowings bear interest at a variable interest rate. The estimated fair value of our bank borrowings approximated their carrying values at September 30, 2020 and December 31, 2019 based upon prevailing market interest rates for similar debt arrangements. (3) Our obligation under our senior unsecured notes is classified as Level 3 and thus the fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is measured based upon management’s estimates of rates currently prevailing for comparable loans available to us, and instruments of comparable maturities. At September 30, 2020, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.75% for those maturing before year 2026 and 4.00% for those maturing at or beyond year 2026. At December 31, 2019, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.70% for those maturing before year 2026 and 3.90% for those maturing at or beyond year 2026. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events Subsequent to September 30, 2020 the following events occurred: Equity: |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
General | |
Basis of Presentation | We have prepared consolidated financial statements included herein without audit and in the opinion of management have included all adjustments necessary for a fair presentation of the consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to rules and regulations governing the presentation of interim financial statements. The accompanying consolidated financial statements include the accounts of our company and its wholly-owned subsidiaries. |
Reclassifications | All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results for a full year. |
Income taxes | No provision has been made for federal or state income taxes. Our company qualifies as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As such, we generally are not taxed on income that is distributed to our stockholders. |
New Accounting Pronouncements | New Accounting Pronouncements New Accounting Standards Adopted by Our Company In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), Leases Topic 842, Leases ● Modify the accounting and lease classification criteria; ● On a quarterly basis, on an individual lease basis, assess the collectibility of substantially all of the lease payments through maturity. If collectibility is not probable, the lease income recorded during the period would be limited to lesser of the income that would have been recognized if collection were probable, and the lease payments received; and ● Exclude the lessor costs that are directly paid by the lessee to third parties on lessor’s behalf from variable payments. However, the lessor costs that are paid by the lessor and reimbursed by the lessee are required to be included in variable payments. As a result of adopting ASU 2016-02 on January 1, 2019, using the modified retrospective transition approach, we evaluated the collectibility of our lease payments and determined that the level of collectibility certainty cannot be achieved for certain operators. Accordingly, we recognized a cumulative effect adjustment to equity of $42,808,000. Additionally, we now report real estate taxes that are reimbursed by our operators as Rental income Property tax expense Consolidated Statements of Income and Comprehensive Income In April 2020, the FASB staff released guidance regarding accounting for lease concessions in response to the novel coronavirus (“COVID-19”) pandemic. The FASB staff guidance indicates that lessors could elect an accounting policy to not evaluate whether rent concessions provided in response to the COVID-19 pandemic are lease modifications. When only the timing of payments is impacted by the rent deferrals, but the amount of the consideration is substantially the same as required by the original lease agreement, the FASB listed two methods for lessors to account for the rent deferrals. We elected the first of the following two methods: ● Account for the rent deferrals as if there were no changes made to the lease agreement. Accordingly, increase the lease receivable and continue to recognize income. ● Account for the rent deferrals as variable lease payments. In 2016, the FASB issued ASU No. 2016-13 , Measurement of Credit Losses on Financial Instruments We adopted ASU 2016-13 on January 1, 2020 and determined our Mortgage loans receivable Notes receivable . The expected credit losses for our financial instruments that are within the scope of ASU 2016-13 are as follows (in thousands): Increase /(Decrease) Balance in Expected Balance Balance Sheet at Credit Loss at Description Location 12/31/2019 During the Quarter 9/30/2020 Expected credit losses for mortgage loans receivable Mortgage loans receivable, net of loan loss reserve $ 2,560 $ 36 $ 2,596 Expected credit losses for notes receivable Notes receivable, net of loan loss reserve $ 181 $ (37) $ 144 We elected not to measure an allowance for expected credit losses on accrued interest receivable under the expected credit loss standard as we have a policy in place to reserve or write off accrued interest receivable in a timely manner through our quarterly review of the loan and property performance. Therefore, we elected the policy to write off accrued interest receivable by reversing interest income and/or recognizing credit loss expense. As of September 30, 2020, the total balance of accrued interest receivable of $31,248,000 was not included in the measurement of expected credit loss. For the three and nine months ended September 30, 2020 and 2019, Company did not recognize any write-off related to accrued interest receivable. |
General (Tables)
General (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
General | |
Schedule of expected credit losses for our financial instruments | The expected credit losses for our financial instruments that are within the scope of ASU 2016-13 are as follows (in thousands): Increase /(Decrease) Balance in Expected Balance Balance Sheet at Credit Loss at Description Location 12/31/2019 During the Quarter 9/30/2020 Expected credit losses for mortgage loans receivable Mortgage loans receivable, net of loan loss reserve $ 2,560 $ 36 $ 2,596 Expected credit losses for notes receivable Notes receivable, net of loan loss reserve $ 181 $ (37) $ 144 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate Investments | |
Summary of investments in owned properties | The following table summarizes our investments in owned properties at September 30, 2020 (dollar amounts in thousands) Average Percentage Number Number of Investment Gross of of SNF ALF per Type of Property Investment Investment Properties (1) Beds Units Bed/Unit Assisted Living $ 880,307 60.8 % 107 — 6,164 $ 142.81 Skilled Nursing 557,097 38.4 % 51 6,277 212 $ 85.85 Other (2) 11,360 0.8 % 1 118 — — Total $ 1,448,764 100.0 % 159 6,395 6,376 (1) We own properties in 27 states that are leased to 29 different operators. (2) Includes three parcels of land held-for-use, and one behavioral health care hospital. |
Schedule of future minimum base rents receivable | Future minimum base rents receivable under the remaining non-cancelable terms of operating leases excluding the effects of straight-line rent receivable, amortization of lease incentives and renewal options are as follows (in thousands): Cash Rent (1) 2020 $ 33,758 2021 143,139 2022 131,294 2023 132,827 2024 131,766 Thereafter 632,675 (1) Represents contractual cash rent, except for Anthem Memory Care (“Anthem”) master lease which is based on estimated cash payments. See below for more disclosure relating to Anthem. |
Summary of components of our rental income | The following table summarizes components of our rental income for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Rental Income 2020 2019 2020 2019 Base cash rental income $ 32,006 (1) $ 33,754 $ 98,357 (1) $ 100,687 Variable cash rental income 3,356 (2) 3,926 (2) 11,793 (2) 12,488 (2) Straight-line rent 228 1,085 1,701 3,598 Adjustment for collectability of rental income and lease incentives (5,472) (3) — (23,214) (4) (1,926) Amortization of lease incentives (108) (100) (317) (281) Total $ 30,010 $ 38,665 $ 88,320 $ 114,566 (1) Decreased primarily due to reduction of rent from Preferred Care portfolio sale and Senior Lifestyle rent shortfall and abated and deferred rent partially offset by increase in rent from acquisitions and completion of development projects and contractual rent increases. (2) The variable rental income for the three and nine months ended September 30, 2020, includes contingent rental income of $4 and $108 , respectively, and reimbursement of real estate taxes by our lessees of $3,352 and $11,685 , respectively. The variable rental income for the three and nine months ended September 30, 2019 includes contingent rental income of $77 and $394 , respectively, and reimbursement of real estate taxes by our lessees of $3,849 and $12,094 , respectively. (3) Represents the write-off of the Genesis and another operator straight-line rent receivable balances. (4) Represents the write-off of the Senior Lifestyle straight-line rent receivable and lease incentive balances and (3) above. |
Summary of information about purchase options included in our lease agreements | Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements (dollar amount in thousands): Type Number of of Gross Carrying Option State Property Properties Investments Value Window California ALF/MC 2 $ 38,895 $ 35,836 2024-2029 California ALF 2 30,609 17,088 2021-TBD (1) Florida MC 1 14,340 12,631 2028-2029 Kentucky and Ohio MC 2 30,152 27,320 2028-2029 Texas MC 2 25,265 23,870 2025-2027 South Carolina ALF/MC 1 11,680 10,358 2028-2029 Total $ 150,941 $ 127,103 (1) The option window ending date will be either 24 months or 48 months after the option window commences, based on certain contingencies. |
Summary of investments acquired | Acquisitions and Developments: The following table summarizes our acquisitions for the nine months ended September 30, 2020 and 2019 (dollar amounts in thousands): Total Number Number Purchase Transaction Acquisition of of Year Type of Property Price Costs (1) Costs Properties Beds/Units 2020 Skilled Nursing (2) $ 13,500 $ 81 $ 13,581 1 140 2019 Assisted Living (3) $ 16,719 $ 176 $ 16,895 1 74 Skilled Nursing (4) 19,500 77 19,577 1 90 Land (5) 2,732 49 2,781 — — Total $ 38,951 $ 302 $ 39,253 2 164 (1) Represents cost associated with our acquisitions; however, upon adoption of ASU 2017-01, our acquisitions meet the definition of an asset acquisition resulting in capitalization of transaction costs to the properties’ basis. For our land purchases with forward development commitments, transaction costs are capitalized as part of construction in progress. Transaction costs per our Consolidated Statements of Income and Comprehensive Income represents current and prior year transaction costs due to timing and terminated transactions. (2) We acquired a SNF located in Texas. (3) We entered into a joint venture (“ JV”) (consolidated on our financial statements) to purchase an existing operational 74 -unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,971 in cash. Our economic interest in the real estate JV is approximately 95% . (4) We acquired a newly constructed 90 -bed SNF located in Missouri. (5) We acquired a parcel of land adjacent to an existing SNF in California. Additionally, we acquired a parcel of land and developed a 90 -bed SNF in Missouri. The commitment totals approximately $17,400 . |
Schedule of investment in development and improvement projects | During he following in development and improvement projects (in thousands) : Nine Months Ended September 30, 2020 2019 Type of Property Developments Improvements Developments Improvements Assisted Living Communities $ 4,491 $ 3,941 $ 10,266 $ 1,826 Skilled Nursing Centers 8,893 14 4,786 — Other — — — 295 Total $ 13,384 $ 3,955 $ 15,052 $ 2,121 |
Schedule of completed projects | Completed Developments. (dollar amounts in thousands): Number Type Number of of of Total Year Type of Project Properties Property Beds/Units State Investment 2020 Development 1 ALF/MC 78 Oregon (1) $ 18,447 Development 1 SNF 90 Missouri 13,272 Total 2 168 $ 31,719 2019 Development 1 SNF 143 Kentucky $ 24,496 Development 1 ILF/ALF/MC 110 Wisconsin 21,893 Total 2 253 $ 46,389 (1) Certificate of occupancy was received in March 2020, however, due to the COVID-19 pandemic, we consented to delay the opening of this community to September 2020. |
Schedule of real estate investment property sold | Properties Sold. (dollar amounts in thousands): Type Number Number of of of Sales Carrying Net Year State Properties Properties Beds/Units Price Value Gain 2020 N/A N/A — — $ — $ — $ 108 (1) Arizona SNF 1 194 12,550 2,229 10,292 Colorado SNF 3 275 15,000 4,271 10,364 Iowa SNF (2) 7 544 14,500 4,886 9,029 Kansas SNF 3 250 9,750 7,438 1,993 Texas SNF 7 1,148 23,000 10,260 12,287 Total 2020 (3) 21 2,411 $ 74,800 $ 29,084 $ 44,073 (3) 2019 N/A N/A — — $ — $ — $ 500 (4) Georgia SNF 1 148 7,920 1,639 6,236 Total 2019 1 148 $ 7,920 $ 1,639 $ 6,736 ( (1) Gain recognized from the $90 repayment of a holdback related to a property sold during the fourth quarter of 2019 and the reassessment adjustment of $18 from the holdback under the expected value model per ASC Topic 606, Contracts with Customers (“ASC 606”). (2) This transaction includes a holdback of $838 which is held in an interest-bearing account with an escrow holder on behalf of the buyer for potential specific losses. Using the expected value model per ASC 606, we estimated and recorded the holdback value of $471 . During the nine months ended September 30, 2020, we received $150 of the holdback. We reassessed the holdback under the expected value model and recorded an additional gain of $115 . (3) Properties sold within the Preferred Care portfolio. (4) Gain recognized from the repayment of a holdback related to a portfolio of six ALFs sold during the second quarter of 2018. |
Summary of investments in mortgage loans secured by first mortgages | Mortgage Loans. (dollar amounts in thousands) Type Percentage Number of Investment Gross of of SNF per Interest Rate (1) Maturity Investment Property Investment Loans (2) Properties (3) Beds Bed/Unit 9.9% 2043 $ 186,865 SNF 71.8 % 1 15 1,941 $ 96.27 9.2% 2045 38,853 SNF 14.9 % 1 4 501 $ 77.55 9.4% 2045 19,624 SNF 7.6 % 1 2 205 $ 95.73 9.6% 2045 14,925 SNF 5.7 % 1 1 157 $ 95.06 Total $ 260,267 100.0 % 4 22 2,804 $ 92.82 (1) The majority of the mortgage loans provide for annual increases in the interest rate after a certain time period increasing by 2.25% . (2) Some loans contain certain guarantees, provide for certain facility fees and the majority of the mortgage loans have a 30-year term. (3) The properties securing these mortgage loans are located in one state and are operated by one operator. |
Schedule of mortgage loan activity | The following table summarizes our mortgage loan activity for the nine months ended September 30, 2020 and 2019 (in thousands): Nine Months Ended September 30, 2020 2019 Amounts Origination/Funding Originations and funding under mortgage loans receivable $ 4,176 (1) $ 10,919 (2) Scheduled principal payments received (565) (565) Mortgage loan premium amortization (3) (3) Provision for loan loss reserve (36) (104) Net increase in mortgage loans receivable $ 3,572 $ 10,247 (1) During 2020, we funded an additional $2,000 under and existing mortgage loan. The incremental funding bears interest at 8.89% and escalating by 2.25% thereafter. (2) During 2019, we funded an additional $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41% fixed for two years and escalating by 2.25% thereafter. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment in Unconsolidated Joint Ventures | |
Summary of the preferred equity investments | Type Type Total Contractual Number of of Preferred Cash of Investment Carrying State Properties Investment Return Portion Beds/ Units Commitment Value Washington UDP Preferred Equity (1) 12 % 7 % — $ — (1) $ 6,340 (1) Washington UDP Preferred Equity (2) 12 % 8 % — 13,000 (2) - (2) Total — $ 13,000 $ 6,340 (1) Invested $6,340 of preferred equity in an entity that will develop a 95 -unit ALF/MC in Washington. Our investment represents 15.5% of the estimated total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the internal rate of return (“IRR”) is 8% . After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging between 12% to 14% . (2) Entered into a preferred equity agreement in an entity that will develop and own a 267 -unit ILF/ALF in Washington. Our investment represents 11.6% of the estimated total investment. Upon the satisfaction of certain conditions which are projected to be met by year-end, LTC will invest $13,000 into the entity. The preferred equity investment will earn an initial cash rate of 8% and a 12% IRR. |
Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint ventures | The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures for the nine months ended September 30, 2020 and 2019 (in thousands): Type of Capital Income Cash Interest Year Properties Contribution Recognized Received 2020 ALF/MC/ILF (1) $ 58 (1) $ 231 (1) $ 231 (1) UDP 6,340 (2) 56 (2) 18 (2) Total $ 6,398 $ 287 $ 249 2019 ALF/MC/ILF $ 394 (1) $ 614 (1) $ 1,166 (1) ALF/ILF/MC (3) — (3) 955 (3) 979 (3) ALF/MC (4) — (4) 404 (4) 432 (4) Total $ 394 $ 1,973 $ 2,577 (1) Relates to our preferred equity investment in Arizona discussed above with a total preferred return of 15% . During the nine months ended September 30, 2020, the properties comprising the JV were sold. (2) During the third quarter of 2020, we provided a total preferred equity investment of $6,340 to a JV for the development of a 95 -unit ALF and MC. (3) We had a $2,900 mezzanine loan commitment for a 99 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance. During the third quarter of 2019, the mezzanine loan was paid off. (4) We had a $3,400 mezzanine loan commitment for the development of a 127 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. During the first quarter of 2019, the mezzanine loan was paid off. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Receivable. | |
Summary of mezzanine loans and other loan arrangements | September 30, 2020 December 31, 2019 Mezzanine loans $ 8,566 $ 13,284 Other loans 5,875 4,824 Notes receivable reserve (144) (181) Total $ 14,297 $ 17,927 |
Schedule of new loan commitments | The following table summarizes our notes receivable activity for the nine months ended September 30, 2020 and 2019 (in thousands): Nine Months Ended September 30, 2020 2019 Advances under notes receivable $ 1,366 (1) $ 8,531 (2) Principal payments received under notes receivable (4,732) (3,446) Reclassified to lease incentives (300) (3) (200) (3) Notes receivable reserve 36 (48) Total $ (3,630) $ 4,837 (1) We originated a $1,250 note agreement, funding $1,000 with a commitment to fund $250 . The note bears interest at 5.0% . (2) We originated a $6,800 mezzanine loan commitment for the development of a 204 -unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months . Additionally, we originated a $1,400 note agreement, funding $1,124 with a commitment to fund $276 . The note bears interest at 7.0% . Further, we originated a $550 note agreement, funding $400 with a commitment to fund $150 . The note bears interest at 7.5% . (3) Represents interim working capital loans related to development projects which matured upon completion of the development projects and commencement of the master leases. |
Lease Incentives (Tables)
Lease Incentives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Lease Incentives | |
Summary of lease incentives by component | Our lease incentive balances at September 30, 2020 and December 31, 2019 are as follows (in thousands): September 30, 2020 December 31, 2019 Non-contingent lease incentives $ 2,401 $ 2,552 |
Summary of lease incentive activity | The following table summarizes our lease incentives activity for the nine months ended September 30, 2020 and 2019 (in thousands) 2020 2019 Funding Amortization Adjustment Funding Amortization Adjustment Non-contingent lease incentives $ 50 $ (317) $ 115 (1) $ 322 $ (281) $ (11,893) (2) (1) We reclassified a $300 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. Additionally, we wrote-off $185 of lease incentive related to a master lease for which we determined it was not probable we will collect substantially all of the contractual lease obligations through maturity. See Note 2. Real Estate Investments for further discussion. (2) In accordance with ASC 842 lease standard adopted on January 1, 2019, we wrote-off $12,093 of lease incentives related to leases for which we determined it is not probable we will collect substantially all of the contractual lease obligation through maturity. See Note 1. General for further discussion. Additionally, we reclassified a $200 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Obligations | |
Schedule of Debt Obligations | The debt obligations by component as of September 30, 2020 and December 31, 2019 are as follows ( dollar amounts in thousands): At September 30, 2020 At December 31, 2019 Applicable Available Available Interest Outstanding for Outstanding for Debt Obligations Rate (1) Balance Borrowing Balance Borrowing Bank borrowings 1.33% $ 89,900 $ 510,100 $ 93,900 $ 506,100 Senior unsecured notes, net of debt issue costs 4.36% 574,444 — 599,488 21,500 Total 3.95% $ 664,344 $ 510,100 $ 693,388 $ 527,600 (1) Represents weighted average of interest rate as of September 30, 2020. |
Schedule of borrowings and repayments | Our borrowings and repayments are as follows (in thousands): Nine Months Ended September 30, 2020 2019 Debt Obligations Borrowings Repayments Borrowings Repayments Bank borrowings $ 24,000 $ (28,000) $ 73,400 $ (20,000) Senior unsecured notes — (25,160) — (14,667) Total $ 24,000 $ (53,160) $ 73,400 $ (34,667) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity | |
Schedule of consolidated VIEs | As of September 30, 2020, we have the following consolidated VIEs (in thousands): Gross Investment Property Consolidated Non-Controlling Year Purpose Type State Assets Interests 2019 Owned real estate ALF/MC VA $ 16,895 $ 919 2018 Owned real estate ILF OR 14,400 2,858 2018 Owned real estate and development ALF/MC OR 18,447 1,081 2017 Owned real estate and development ILF/ALF/MC WI 22,007 2,305 2017 Owned real estate ALF/MC SC 11,680 1,241 Total $ 83,429 $ 8,404 |
Schedule of cash dividends declared and paid | Distributions. (in thousands) Nine Months Ended September 30, 2020 2019 Declared Paid Declared Paid Common Stock (1) $ 67,894 (2) $ 67,894 (2) $ 68,241 (3) $ 68,241 (3) (1) Represents $0.19 per share per month for the nine months ended September 30, 2020 and 2019. (2) Includes $586 related to the vesting of performance-based stock units. (3) Includes $300 related to the vesting of performance-based stock units. |
Schedule of options exercised | Weighted Average Options Exercise Option Market Exercised Price Value Value (1) 2020 — $ — $ — $ — 2019 5,000 $ 24.65 $ 123,000 $ 233,000 (1) (1) As of exercise date. |
Schedule of restricted stock activity | The following table summarizes our restricted stock and performance-based stock units activity for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 Outstanding, January 1 345,633 325,750 Granted 167,375 147,608 Vested (166,051) (1) (127,725) (2) Outstanding, September 30 346,957 345,633 (1) Includes 81,574 performance-based stock units. (2) Includes 48,225 performance-based stock units. |
Schedule of restricted stock granted | During the nine months ended September 30, 2020 and 2019, we granted restricted stock and performance-based stock units under the 2015 Plan as follows: No. of Price per Year Shares/Units Share Vesting Period 2020 76,464 $ 48.95 ratably over 3 years 66,027 $ 49.98 TSR targets (1) 9,884 $ 38.45 May 27, 2021 15,000 $ 38.45 ratably over 3 years 167,375 2019 78,276 $ 46.54 ratably over 3 years 60,836 $ 46.54 TSR targets (1) 8,496 $ 44.73 May 29, 2020 147,608 (1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in 4 years with acceleration opportunity in 3 years . |
Schedule of restricted common stock and performance-based stock unit scheduled to vest and remaining compensation expense | Remaining Compensation Vesting Date Expense 2020 $ 1,781 2021 5,201 2022 2,729 2023 367 Total $ 10,078 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Schedule of commitments | At September 30, 2020, we had commitments as follows (in thousands): Total Investment 2020 Commitment Remaining Commitment Funding Funded Commitment Real estate properties Note 2. Real Estate Investments $ 28,713 (1) $ 12,487 $ 17,459 $ 11,254 Accrued incentives and earn-out liabilities (Note 5. Lease Incentives) 9,000 — — 9,000 Mortgage loans ( Note 2. Real Estate Investments 27,200 (2) 2,928 8,873 18,327 Joint venture investments ( Note 3. Investments in Unconsolidated Joint Ventures 13,000 — — 13,000 Notes receivable ( Note 4. Notes Receivable 1,854 1,275 1,275 579 Total $ 79,767 $ 16,690 $ 27,607 $ 52,160 (1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties. (2) Represents $9,200 of commitments to expand and renovate the seniors housing and health care properties securing the mortgage loans and $18,000 represents contingent funding upon the borrower achieving certain coverage ratios. |
Major Operators (Tables)
Major Operators (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Major Operators | |
Schedule of concentration of risk by major operators | Number of Number of Percentage of SNF ALF Total Total Operator SNF ALF Beds Units Revenue (1) Assets (2) Prestige Healthcare 24 — 2,922 93 19.8 % 18.0 % Senior Lifestyle Corporation (3) — 23 — 1,457 10.4 % 10.2 % Total 24 23 2,922 1,550 30.2 % 28.2 % (1) Includes rental income from owned properties and interest income from mortgage loans as of September 30, 2020 and excludes rental income from lessee reimbursement and sold properties. (2) Represents the net carrying value of the properties divided by the Total assets on the Consolidated Balance Sheets. (3) See Note 2. Real Estate Investments for further information regarding Senior Lifestyle. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings per Share | |
Schedule of basic and diluted net income per share | The following table sets forth the computation of basic and diluted net income per share ( in thousands, except per share amounts Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income $ 12,338 $ 27,280 $ 78,012 $ 68,241 Less income allocated to non-controlling interests (121) (88) (292) (257) Less income allocated to participating securities: Non-forfeitable dividends on participating securities (103) (93) (294) (279) Income allocated to participating securities — (19) (45) (19) Total net income allocated to participating securities (1) (103) (112) (339) (298) Net income available to common stockholders 12,114 27,080 77,381 67,686 Effect of dilutive securities: Participating securities (2) — — — — Net income for diluted net income per share $ 12,114 $ 27,080 $ 77,381 $ 67,686 Shares for basic net income per share 39,061 39,586 39,218 39,565 Effect of dilutive securities: Stock options — 4 — 4 Performance-based stock units 51 375 51 375 Participating securities (2) — — — — Total effect of dilutive securities 51 379 51 379 Shares for diluted net income per share 39,112 39,965 39,269 39,944 Basic net income per share $ 0.31 $ 0.68 $ 1.97 $ 1.71 Diluted net income per share $ 0.31 $ 0.68 $ 1.97 $ 1.69 (1) Under the two-class method of computing earnings per share in accordance with GAAP, income (loss) allocated to participating securities is calculated independently for each quarter and year-to-date period. Therefore, the sum of the amounts for the quarter may not agree with the amounts for the year. (2) For the three and nine months ended September 30, 2020, and 2019, the participating securities have been excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Schedule of carrying value and fair value of the entity's financial instruments | At September 30, 2020 At December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Mortgage loans receivable $ 257,671 $ 299,151 (1) $ 254,099 $ 312,824 (1) Bank borrowings 89,900 89,900 (2) 93,900 93,900 (2) Senior unsecured notes, net of debt issue costs 574,444 582,480 (3) 599,488 612,375 (3) (1) Our investment in mortgage loans receivable is classified as Level 3. The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments. The discount rate used to value our future cash inflows of the mortgage loans receivable at September 30, 2020 and December 31, 2019 was 10.0% and 9.0% , respectively. (2) Our bank borrowings bear interest at a variable interest rate. The estimated fair value of our bank borrowings approximated their carrying values at September 30, 2020 and December 31, 2019 based upon prevailing market interest rates for similar debt arrangements. (3) Our obligation under our senior unsecured notes is classified as Level 3 and thus the fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is measured based upon management’s estimates of rates currently prevailing for comparable loans available to us, and instruments of comparable maturities. At September 30, 2020, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.75% for those maturing before year 2026 and 4.00% for those maturing at or beyond year 2026. At December 31, 2019, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.70% for those maturing before year 2026 and 3.90% for those maturing at or beyond year 2026. |
General (Details)
General (Details) | 9 Months Ended | |||||||||
Sep. 30, 2020USD ($)segment | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Number of operating segments | segment | 1 | |||||||||
Provision for federal or state income taxes | $ 0 | |||||||||
Cumulative effect of the adoption of the ASC 842 | $ 778,821,000 | $ 787,305,000 | $ 806,055,000 | $ 785,426,000 | $ 793,894,000 | $ 787,610,000 | $ 788,153,000 | $ 832,971,000 | ||
Interest receivable | 31,248,000 | 26,586,000 | ||||||||
Mortgage Loans Receivable | ||||||||||
Expected credit losses for financial instruments | ||||||||||
Balance at the Beginning of the Period | 2,560,000 | |||||||||
Increase/(Decrease) in Expected Credit Loss | 2,596,000 | 2,596,000 | 2,560,000 | |||||||
Balance at the End of the Period | 2,596,000 | |||||||||
Notes Receivable | ||||||||||
Expected credit losses for financial instruments | ||||||||||
Balance at the Beginning of the Period | 181,000 | |||||||||
Increase/(Decrease) in Expected Credit Loss | 144,000 | $ 144,000 | 181,000 | |||||||
Balance at the End of the Period | 144,000 | |||||||||
Cumulative Effect of Adoption | ||||||||||
Cumulative effect of the adoption of the ASC 842 | $ (42,808,000) | |||||||||
ASU 2016-02 | Cumulative Effect of Adoption | ||||||||||
Cumulative effect of the adoption of the ASC 842 | $ 42,808,000 | |||||||||
Restatement Adjustment | ASU 2016-13 | Mortgage Loans Receivable | ||||||||||
Expected credit losses for financial instruments | ||||||||||
Balance at the Beginning of the Period | 36,000 | |||||||||
Increase/(Decrease) in Expected Credit Loss | 36,000 | 36,000 | ||||||||
Restatement Adjustment | ASU 2016-13 | Notes Receivable | ||||||||||
Expected credit losses for financial instruments | ||||||||||
Balance at the Beginning of the Period | (37,000) | |||||||||
Increase/(Decrease) in Expected Credit Loss | $ (37,000) | $ (37,000) |
Real Estate Investments - Owned
Real Estate Investments - Owned Properties (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)itempropertystate$ / item | Sep. 30, 2019item | |
Real Estate [Line Items] | ||
Number of beds/units under development | 204 | |
Real Estate Investment | ||
Real Estate [Line Items] | ||
Gross Investment | $ | $ 1,448,764 | |
Percentage of Investment | 100.00% | |
Number of properties | property | 159 | |
Number of states | state | 27 | |
Number of operators | 29 | |
Operating leases | ||
Number of ways to compute annual rent increases | 4 | |
Real Estate Investment | Minimum | ||
Operating leases | ||
Initial lease term | 10 years | |
Specified annual increase over the prior year's rent (as a percent) | 2.00% | |
Real Estate Investment | Maximum | ||
Operating leases | ||
Initial lease term | 15 years | |
Specified annual increase over the prior year's rent (as a percent) | 2.50% | |
Real Estate Investment | SNF Beds | ||
Real Estate [Line Items] | ||
Number of beds/units | 6,395 | |
Real Estate Investment | ALF Units | ||
Real Estate [Line Items] | ||
Number of beds/units | 6,376 | |
ALF | Real Estate Investment | ||
Real Estate [Line Items] | ||
Gross Investment | $ | $ 880,307 | |
Percentage of Investment | 60.80% | |
Number of properties | property | 107 | |
Investment per Bed/Unit | $ / item | 142.81 | |
ALF | Real Estate Investment | ALF Units | ||
Real Estate [Line Items] | ||
Number of beds/units | 6,164 | |
SNF | Real Estate Investment | ||
Real Estate [Line Items] | ||
Gross Investment | $ | $ 557,097 | |
Percentage of Investment | 38.40% | |
Number of properties | property | 51 | |
Investment per Bed/Unit | $ / item | 85.85 | |
SNF | Real Estate Investment | SNF Beds | ||
Real Estate [Line Items] | ||
Number of beds/units | 6,277 | |
SNF | Real Estate Investment | ALF Units | ||
Real Estate [Line Items] | ||
Number of beds/units | 212 | |
Other | Real Estate Investment | ||
Real Estate [Line Items] | ||
Gross Investment | $ | $ 11,360 | |
Percentage of Investment | 0.80% | |
Number of properties | property | 1 | |
Number of parcels of land | 3 | |
Other | Real Estate Investment | SNF Beds | ||
Real Estate [Line Items] | ||
Number of beds/units | 118 | |
Hospital | Real Estate Investment | ||
Real Estate [Line Items] | ||
Number of properties | property | 1 |
Real Estate Investments - Base
Real Estate Investments - Base Rents (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Future minimum base rents receivable | |
2020 | $ 33,758 |
2021 | 143,139 |
2022 | 131,294 |
2023 | 132,827 |
2024 | 131,766 |
Thereafter | $ 632,675 |
Real Estate Investments - Opera
Real Estate Investments - Operator changes (Details) | Oct. 04, 2019USD ($) | Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($)itemproperty | Jul. 31, 2020USD ($) | Sep. 30, 2020USD ($)itempropertylease | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)propertyitem | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)itemproperty | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)propertyitem | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2017item | Dec. 31, 2019USD ($) |
Other disclosures | |||||||||||||||
Rent deferral | $ 566,000 | $ 1,176,000 | $ 1,176,000 | $ 1,176,000 | $ 1,176,000 | ||||||||||
Impairment charges | 941,000 | ||||||||||||||
Rental income | 30,010,000 | $ 38,665,000 | 88,320,000 | $ 114,566,000 | |||||||||||
Proceeds from sale of real estate, net | 72,141,000 | 8,068,000 | |||||||||||||
Gain on sale of real estate, net | 30,000 | $ 6,236,000 | $ 44,073,000 | $ 6,736,000 | |||||||||||
Net book value | $ 26,856,000 | ||||||||||||||
Anthem Memory Care | |||||||||||||||
Other disclosures | |||||||||||||||
Number of properties in default | property | 11 | ||||||||||||||
Anthem Memory Care | Forecast | |||||||||||||||
Other disclosures | |||||||||||||||
Minimum cash rent received | $ 9,900,000 | ||||||||||||||
Preferred Care, Inc. | |||||||||||||||
Other disclosures | |||||||||||||||
Number of properties under two master leases | item | 24 | ||||||||||||||
Number of master leases | item | 2 | ||||||||||||||
Number of properties sold | property | 21 | ||||||||||||||
Number of beds or units in property sold | item | 2,411 | ||||||||||||||
Proceeds from sale of real estate, net | $ 72,100,000 | $ 77,900,000 | |||||||||||||
Gain on sale of real estate, net | 44,073,000 | 44,000,000 | |||||||||||||
Net book value | $ 29,100,000 | $ 29,100,000 | $ 35,600,000 | ||||||||||||
Senior Lifestyle Corporation | |||||||||||||||
Other disclosures | |||||||||||||||
Number of properties in default | property | 23 | ||||||||||||||
Contractual rent | 1,561,000 | 9,121,000 | |||||||||||||
Remaining outstanding accounts receivable | 2,670,000 | 2,670,000 | 2,670,000 | $ 2,670,000 | |||||||||||
Rent receivable line of credit and security deposit as collateral | 3,608,000 | 3,608,000 | 3,608,000 | 3,608,000 | |||||||||||
Write-off of rent receivable and lease incentives | $ 17,742,000 | ||||||||||||||
Rental income | $ 1,341,000 | 5,325,000 | |||||||||||||
Veritas Senior Living, LLC | |||||||||||||||
Other disclosures | |||||||||||||||
Contractual rent | 374,000 | 1,299,000 | |||||||||||||
Write-off of rent receivable and lease incentives | $ 1,156,000 | ||||||||||||||
Number of master lease into combined one | lease | 2 | ||||||||||||||
Abated cash rent | $ 570,000 | $ 80,000 | 650,000 | ||||||||||||
Rent deferral | $ 186,000 | 186,000 | $ 186,000 | $ 186,000 | |||||||||||
Impairment charges | 941,000 | ||||||||||||||
Rental income | 542,000 | ||||||||||||||
Genesis healthcare | |||||||||||||||
Other disclosures | |||||||||||||||
Write-off of rent receivable and lease incentives | $ 4,316,000 | ||||||||||||||
Brookdale Senior Living | |||||||||||||||
Other disclosures | |||||||||||||||
Number of leases consolidated | lease | 4 | ||||||||||||||
Number of renewal option | item | 3 | 3 | 3 | 3 | |||||||||||
Renewal term option one | 4 years | ||||||||||||||
Renewal term option two | 5 years | ||||||||||||||
Renewal term option three | 10 years | ||||||||||||||
Senior Care Centers | |||||||||||||||
Other disclosures | |||||||||||||||
Court ordered payment amount | $ 1,596,000 | ||||||||||||||
Real Estate Investment | |||||||||||||||
Other disclosures | |||||||||||||||
Number of properties | property | 159 | 159 | 159 | 159 | |||||||||||
Real Estate Investment | Maximum | |||||||||||||||
Other disclosures | |||||||||||||||
Initial lease term | 15 years | 15 years | 15 years | 15 years |
Real Estate Investments - Lease
Real Estate Investments - Lease (Details) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 9 Months Ended | |||
Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Real estate investments | ||||||||
Carrying value | $ 1,108,931,000 | $ 1,108,931,000 | $ 1,108,931,000 | $ 1,136,816,000 | ||||
Income and Expenses, Lessor [Abstract] | ||||||||
Base cash rental income | 32,006,000 | $ 33,754,000 | 98,357,000 | $ 100,687,000 | ||||
Variable cash rental income | 3,356,000 | 3,926,000 | 11,793,000 | 12,488,000 | ||||
Straight-Line Rent | 228,000 | 1,085,000 | 1,701,000 | 3,598,000 | ||||
Change in straight-line rent receivable and lease incentives due to collectibility | (5,472,000) | (23,214,000) | (1,926,000) | |||||
Amortization of Lease Incentives | (108,000) | (100,000) | (317,000) | (281,000) | ||||
Total Rental Income | 30,010,000 | 38,665,000 | 88,320,000 | 114,566,000 | ||||
Reimbursement Of Real Estate Tax Expense | 3,352,000 | 3,849,000 | 11,685,000 | 12,094,000 | ||||
Contingent rental income | 4,000 | $ 77,000 | 108,000 | 394,000 | ||||
Non-contingent lease incentives, Write off | 185,000 | $ (12,093,000) | ||||||
Rent deferral | $ 566,000 | $ 1,176,000 | $ 566,000 | $ 1,176,000 | $ 1,176,000 | |||
Rent deferral, as a percent of contractual rent | 1.50% | 1.50% | 1.50% | |||||
Deferred rent received | 553,000 | |||||||
Remaining balance of deferred rent | 1,189,000 | $ 1,189,000 | ||||||
Purchase Option in Lease Arrangements | ||||||||
Real estate investments | ||||||||
Gross Investment | $ 150,941,000 | $ 150,941,000 | $ 150,941,000 | |||||
Carrying value | $ 127,103,000 | 127,103,000 | $ 127,103,000 | |||||
Senior Lifestyle Corporation | ||||||||
Income and Expenses, Lessor [Abstract] | ||||||||
Total Rental Income | $ 1,341,000 | $ 5,325,000 | ||||||
ALF | Purchase Option in Lease Arrangements | California | ||||||||
Real estate investments | ||||||||
Number of properties | property | 2 | 2 | 2 | |||||
Gross Investment | $ 30,609,000 | $ 30,609,000 | $ 30,609,000 | |||||
Carrying value | $ 17,088,000 | $ 17,088,000 | $ 17,088,000 | |||||
ALF | Purchase Option in Lease Arrangements | California | Minimum | ||||||||
Real estate investments | ||||||||
Purchase option ending period | 24 months | |||||||
ALF | Purchase Option in Lease Arrangements | California | Maximum | ||||||||
Real estate investments | ||||||||
Purchase option ending period | 48 months | |||||||
MC | Purchase Option in Lease Arrangements | Florida | ||||||||
Real estate investments | ||||||||
Number of properties | property | 1 | 1 | 1 | |||||
Gross Investment | $ 14,340,000 | $ 14,340,000 | $ 14,340,000 | |||||
Carrying value | $ 12,631,000 | $ 12,631,000 | $ 12,631,000 | |||||
MC | Purchase Option in Lease Arrangements | Ohio and Kentucky | ||||||||
Real estate investments | ||||||||
Number of properties | property | 2 | 2 | 2 | |||||
Gross Investment | $ 30,152,000 | $ 30,152,000 | $ 30,152,000 | |||||
Carrying value | $ 27,320,000 | $ 27,320,000 | $ 27,320,000 | |||||
MC | Purchase Option in Lease Arrangements | Texas | ||||||||
Real estate investments | ||||||||
Number of properties | property | 2 | 2 | 2 | |||||
Gross Investment | $ 25,265,000 | $ 25,265,000 | $ 25,265,000 | |||||
Carrying value | $ 23,870,000 | $ 23,870,000 | $ 23,870,000 | |||||
ALF and MC | Purchase Option in Lease Arrangements | California | ||||||||
Real estate investments | ||||||||
Number of properties | property | 2 | 2 | 2 | |||||
Gross Investment | $ 38,895,000 | $ 38,895,000 | $ 38,895,000 | |||||
Carrying value | $ 35,836,000 | $ 35,836,000 | $ 35,836,000 | |||||
ALF and MC | Purchase Option in Lease Arrangements | South Carolina | ||||||||
Real estate investments | ||||||||
Number of properties | property | 1 | 1 | 1 | |||||
Gross Investment | $ 11,680,000 | $ 11,680,000 | $ 11,680,000 | |||||
Carrying value | $ 10,358,000 | $ 10,358,000 | $ 10,358,000 | |||||
Real Estate Investment | ||||||||
Real estate investments | ||||||||
Number of properties | property | 159 | 159 | 159 | |||||
Gross Investment | $ 1,448,764,000 | $ 1,448,764,000 | $ 1,448,764,000 | |||||
Real Estate Investment | ALF | ||||||||
Real estate investments | ||||||||
Number of properties | property | 107 | 107 | 107 | |||||
Gross Investment | $ 880,307,000 | $ 880,307,000 | $ 880,307,000 |
Real Estate Investments - Acqui
Real Estate Investments - Acquisitions and Developments (Details) | 9 Months Ended | ||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | Dec. 31, 2019USD ($) | |
Real estate investments | |||
Purchase Price | $ 38,951,000 | ||
Transaction Costs | 302,000 | ||
Total Acquisition Costs | $ 39,253,000 | ||
Number of properties acquired | 2 | ||
Number of beds/units acquired | item | 164 | ||
Number of units under development | item | 204 | ||
Investment Commitment | $ 79,767,000 | ||
Non-controlling interests | 8,404,000 | $ 8,483,000 | |
SNF | Missouri | |||
Real estate investments | |||
Number of beds/units acquired | item | 90 | ||
ALF and MC | 74-Unit ALF/MC | |||
Real estate investments | |||
Investment Commitment | $ 15,971,000 | ||
Non-controlling interests | $ 919,000 | ||
Land | Missouri | |||
Real estate investments | |||
Number of beds/units acquired | item | 90 | ||
Properties under Development | Missouri | |||
Real estate investments | |||
Investment Commitment | 17,400 | ||
2020 Acquisitions | SNF | |||
Real estate investments | |||
Purchase Price | 13,500,000 | ||
Transaction Costs | 81,000 | ||
Total Acquisition Costs | $ 13,581,000 | ||
Number of properties acquired | 1 | ||
Number of beds/units acquired | item | 140 | ||
2019 Acquisitions | SNF | |||
Real estate investments | |||
Purchase Price | $ 19,500,000 | ||
Transaction Costs | 77,000 | ||
Total Acquisition Costs | $ 19,577,000 | ||
Number of properties acquired | 1 | ||
Number of beds/units acquired | item | 90 | ||
2019 Acquisitions | ALF | |||
Real estate investments | |||
Purchase Price | $ 16,719,000 | ||
Transaction Costs | 176,000 | ||
Total Acquisition Costs | $ 16,895,000 | ||
Number of properties acquired | 1 | ||
Number of beds/units acquired | item | 74 | ||
2019 Acquisitions | ALF and MC | 74-Unit ALF/MC | |||
Real estate investments | |||
Number of units under development | item | 74 | ||
Economic interest in joint venture | 95.00% | ||
2019 Acquisitions | Land | |||
Real estate investments | |||
Purchase Price | $ 2,732,000 | ||
Transaction Costs | 49,000 | ||
Total Acquisition Costs | $ 2,781,000 |
Real Estate Investments - Types
Real Estate Investments - Types of property Development and Improvement (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Real estate investments | ||
Invested in projects | $ 16,690,000 | |
Developments | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 13,384,000 | $ 15,052,000 |
Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 3,955,000 | 2,121,000 |
ALF | Developments | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 4,491,000 | 10,266,000 |
ALF | Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 3,941,000 | 1,826,000 |
SNF | Developments | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 8,893,000 | 4,786,000 |
SNF | Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | $ 14,000 | |
Other | Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | $ 295,000 |
Real Estate Investments - Devel
Real Estate Investments - Development and Improvement Projects (Details) - Real Estate Development Commitments - Real Estate Investment Completed Projects $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)itemproperty | Sep. 30, 2019USD ($)itemproperty | |
Completed development and improvement projects | ||
Number of Properties | property | 2 | 2 |
Number of Beds/Units | item | 168 | 253 |
Total Investment | $ | $ 31,719 | $ 46,389 |
ALF and MC | Developments | Oregon | ||
Completed development and improvement projects | ||
Number of Properties | property | 1 | |
Number of Beds/Units | item | 78 | |
Total Investment | $ | $ 18,447 | |
SNF | Developments | Missouri | ||
Completed development and improvement projects | ||
Number of Properties | property | 1 | |
Number of Beds/Units | item | 90 | |
Total Investment | $ | $ 13,272 | |
SNF | Developments | Kentucky | ||
Completed development and improvement projects | ||
Number of Properties | property | 1 | |
Number of Beds/Units | item | 143 | |
Total Investment | $ | $ 24,496 | |
ILF/ALF/MC | Developments | Wisconsin | ||
Completed development and improvement projects | ||
Number of Properties | property | 1 | |
Number of Beds/Units | item | 110 | |
Total Investment | $ | $ 21,893 |
Real Estate Investments - Prope
Real Estate Investments - Property Sales (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)propertyitem | Sep. 30, 2019USD ($) | Jun. 30, 2018property | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)itemproperty | Sep. 30, 2019USD ($)itemproperty | Dec. 31, 2019USD ($) | |
Disposals and other | ||||||||
Carrying value | $ 1,108,931,000 | $ 1,108,931,000 | $ 1,136,816,000 | |||||
Net Gain | 30,000 | $ 6,236,000 | 44,073,000 | $ 6,736,000 | ||||
Impairment charges | 941,000 | $ 941,000 | ||||||
ALF | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 6 | |||||||
Properties sold | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 21 | 1 | ||||||
Number of beds or units in property sold | item | 2,411 | 148 | ||||||
Sales price | $ 74,800,000 | $ 7,920,000 | ||||||
Carrying value | 29,084,000 | 1,639,000 | 29,084,000 | 1,639,000 | ||||
Net Gain | 44,073,000 | 6,736,000 | ||||||
Net Gain | 108,000 | $ 500,000 | ||||||
Holdback repayment | 90,000 | |||||||
Reassessment adjustment | $ 18,000 | |||||||
Properties sold | SNF | Arizona | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 1 | |||||||
Number of beds or units in property sold | item | 194 | |||||||
Sales price | $ 12,550,000 | |||||||
Carrying value | 2,229,000 | 2,229,000 | ||||||
Net Gain | $ 10,292,000 | |||||||
Properties sold | SNF | Colorado | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 3 | |||||||
Number of beds or units in property sold | item | 275 | |||||||
Sales price | $ 15,000,000 | |||||||
Carrying value | 4,271,000 | 4,271,000 | ||||||
Net Gain | $ 10,364,000 | |||||||
Properties sold | SNF | Kansas | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 3 | |||||||
Number of beds or units in property sold | item | 250 | |||||||
Sales price | $ 9,750,000 | |||||||
Carrying value | 7,438,000 | 7,438,000 | ||||||
Net Gain | $ 1,993,000 | |||||||
Properties sold | SNF | Iowa | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 7 | |||||||
Number of beds or units in property sold | item | 544 | |||||||
Sales price | $ 14,500,000 | |||||||
Carrying value | 4,886,000 | 4,886,000 | ||||||
Net Gain | 9,029,000 | |||||||
Holdback amount | 150,000 | $ 838,000 | $ 838,000 | 150,000 | ||||
Realizable holdback amount | $ 471,000 | $ 115,000 | ||||||
Properties sold | SNF | Texas | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 7 | |||||||
Number of beds or units in property sold | item | 1,148 | |||||||
Sales price | $ 23,000,000 | |||||||
Carrying value | $ 10,260,000 | 10,260,000 | ||||||
Net Gain | $ 12,287,000 | |||||||
Properties sold | SNF | Georgia | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 1 | |||||||
Number of beds or units in property sold | item | 148 | |||||||
Sales price | $ 7,920,000 | |||||||
Carrying value | $ 1,639,000 | 1,639,000 | ||||||
Net Gain | $ 6,236,000 | |||||||
Preferred Care, Inc. | ||||||||
Disposals and other | ||||||||
Number of properties sold | property | 21 | |||||||
Number of beds or units in property sold | item | 2,411 | |||||||
Net Gain | $ 44,073,000 | $ 44,000,000 |
Real Estate Investments - Mortg
Real Estate Investments - Mortgage Loan (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)loanpropertyitemstate$ / item | |
Mortgage Loans | |
Real Estate [Line Items] | |
Gross Investment | $ | $ 260,267 |
Percentage of Investment | 100.00% |
Number of Loans | loan | 4 |
Number of properties | property | 22 |
Investment per Bed/Unit | $ / item | 92.82 |
Loan Term | 30 years |
Number of states | state | 1 |
Number of operators | 1 |
Mortgage loans with 9.90% Interest Maturing 2043 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Interest rate (as a percent) | 9.90% |
Gross Investment | $ | $ 186,865 |
Percentage of Investment | 71.80% |
Number of Loans | loan | 1 |
Number of properties | property | 15 |
Investment per Bed/Unit | $ / item | 96.27 |
Mortgage loans with 9.20% Interest Maturing 2045 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Interest rate (as a percent) | 9.20% |
Gross Investment | $ | $ 38,853 |
Percentage of Investment | 14.90% |
Number of Loans | loan | 1 |
Number of properties | property | 4 |
Investment per Bed/Unit | $ / item | 77.55 |
Mortgage loans with 9.40% Interest Maturing 2045 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Interest rate (as a percent) | 9.40% |
Gross Investment | $ | $ 19,624 |
Percentage of Investment | 7.60% |
Number of Loans | loan | 1 |
Number of properties | property | 2 |
Investment per Bed/Unit | $ / item | 95.73 |
Mortgage loans with 9.6% Interest Maturing 2045 | SNF | |
Real Estate [Line Items] | |
Interest rate (as a percent) | 9.60% |
Mortgage loans with 9.6% Interest Maturing 2045 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Gross Investment | $ | $ 14,925 |
Percentage of Investment | 5.70% |
Number of Loans | loan | 1 |
Number of properties | property | 1 |
Investment per Bed/Unit | $ / item | 95.06 |
SNF Beds | Mortgage Loans | |
Real Estate [Line Items] | |
Number of beds/units | 2,804 |
SNF Beds | Mortgage loans with 9.90% Interest Maturing 2043 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Number of beds/units | 1,941 |
SNF Beds | Mortgage loans with 9.20% Interest Maturing 2045 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Number of beds/units | 501 |
SNF Beds | Mortgage loans with 9.40% Interest Maturing 2045 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Number of beds/units | 205 |
SNF Beds | Mortgage loans with 9.6% Interest Maturing 2045 | SNF | Mortgage Loans | |
Real Estate [Line Items] | |
Number of beds/units | 157 |
Real Estate Investments - Mor_2
Real Estate Investments - Mortgage Loans Activity (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Mortgage Loans | ||
Originations and fundings under mortgage loans receivable | $ 4,176,000 | $ 10,919,000 |
Scheduled principal payments received | (565,000) | (565,000) |
Mortgage loan premium amortization | (3,000) | (3,000) |
Provision for loan loss reserve | (36,000) | (104,000) |
Net increase in mortgage loans receivable | $ 3,572,000 | 10,247,000 |
Mortgage Loans | ||
Mortgage Loans | ||
Loan Term | 30 years | |
Specified basis points for annual increase in interest rate (as a percent) | 2.25% | |
Mortgages With 8.89 Percent Interest With Escalation [Member] | Mortgage Loans | ||
Mortgage Loans | ||
Additions to mortgage loans | $ 2,000 | |
Interest rate (as a percent) | 8.89% | |
Specified basis points for annual increase in interest rate (as a percent) | 2.25% | |
Mortgages with 9.41% Interest, fixed for five years, and escalating by 2.25% thereafter | Mortgage Loans | ||
Mortgage Loans | ||
Additions to mortgage loans | $ 7,500 | |
Interest rate (as a percent) | 9.41% | |
Loan Term | 2 years | |
Specified basis points for annual increase in interest rate (as a percent) | 2.25% |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Ventures - Investment (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)itemproperty | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($)itemproperty | Sep. 30, 2019USD ($)item | Dec. 31, 2019USD ($)property | Mar. 31, 2021USD ($) | |
Investment in Unconsolidated Joint Ventures | ||||||
Number of joint ventures committed | property | 2 | |||||
Carrying Value | $ 7,069,000 | $ 7,069,000 | $ 19,003,000 | |||
Income Recognized | 287,000 | $ 1,973,000 | ||||
Cash Interest Received | 249,000 | 2,577,000 | ||||
Liquidation proceeds | 17,758,000 | 6,601,000 | ||||
Joint Venture | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Liquidation proceeds | $ 17,758,000 | $ 17,758,000 | ||||
Additional proceeds | $ 729,000 | |||||
Amount of gains (losses) on liquidation | $ (620,000,000) | |||||
Joint Venture | Preferred Equity Investment | Arizona | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Number of properties owned by joint venture | property | 4 | 4 | ||||
Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Capital Contributions | $ 6,398,000 | 394,000 | ||||
Income Recognized | 287,000 | 1,973,000 | ||||
Cash Interest Received | 249,000 | 2,577,000 | ||||
Preferred Equity Investment | Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Investment commitment | 13,000,000 | |||||
Carrying Value | $ 6,340,000 | 6,340,000 | ||||
Combination ILF, ALF and MC community | Preferred Equity Investment | Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Number of properties owned by joint venture for sale | property | 4 | |||||
Impairment loss from investments in unconsolidated joint ventures | $ 5,500,000 | |||||
Combination ALF, MC, ILF | Preferred Equity Investment | Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Capital Contributions | 58,000 | 394,000 | ||||
Income Recognized | 231,000 | 614,000 | ||||
Cash Interest Received | $ 231,000 | $ 1,166,000 | ||||
Combination ALF, MC, ILF | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Arizona | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Preferred return percentage | 15.00% | |||||
UDP | Preferred Equity Investment | Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Number of beds/units | 95 | 95 | ||||
Capital Contributions | $ 6,340,000 | $ 6,340,000 | ||||
Income Recognized | 56,000 | |||||
Cash Interest Received | $ 18,000 | |||||
Combination ALF, ILF, MC | Mezzanine Loans | Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Preferred return percentage | 15.00% | |||||
Number of beds/units | item | 99 | |||||
Investment commitment | $ 2,900,000 | |||||
Income Recognized | 955,000 | |||||
Cash Interest Received | $ 979,000 | |||||
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Preferred return percentage | 12.00% | |||||
Contractual cash portion | 7.00% | |||||
Number of beds/units | item | 95 | 95 | ||||
Carrying Value | $ 6,340,000 | $ 6,340,000 | ||||
Percentage of Investment | 15.50% | 15.50% | ||||
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | Internal Rate of Return is Until Eight Percent | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Percentage of cash return | 8.00% | |||||
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | Internal Rate of Return is Until Eight Percent | Minimum | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Percentage of cash return | 7.00% | |||||
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | Internal Rate of Return is Until Eight Percent | Maximum | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Percentage of cash return | 9.00% | |||||
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | The Internal Rate of Return is Between Twelve and Fourteen Percent | Minimum | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Percentage of cash return | 12.00% | |||||
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | The Internal Rate of Return is Between Twelve and Fourteen Percent | Maximum | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Percentage of cash return | 14.00% | |||||
Combination ALF/MC | Mezzanine Loans | Joint Venture | Not primary beneficiary | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Preferred return percentage | 15.00% | |||||
Number of beds/units | item | 127 | |||||
Investment commitment | $ 3,400,000 | |||||
Income Recognized | 404,000 | |||||
Cash Interest Received | $ 432,000 | |||||
Combination ILF/ALF | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | ||||||
Investment in Unconsolidated Joint Ventures | ||||||
Preferred return percentage | 12.00% | |||||
Contractual cash portion | 8.00% | |||||
Number of beds/units | item | 267 | 267 | ||||
Investment commitment | $ 13,000,000 | |||||
Percentage of Investment | 11.60% | 11.60% | ||||
Percentage of cash return | 8.00% | |||||
Percentage of internal rate of return | 12.00% | |||||
Amount of joint venture investment | $ 13,000,000 | $ 13,000,000 |
Notes Receivable - Components (
Notes Receivable - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Notes receivable activities | |||
Mezzanine loan | $ 6,800 | ||
Notes receivable reserve | $ (144) | $ (181) | |
Total | 14,297 | 17,927 | |
Mezzanine loan with 12.0% Interest | |||
Notes receivable activities | |||
Mezzanine loan | 8,566 | 13,284 | |
Other loans | |||
Notes receivable activities | |||
Mezzanine loan | $ 5,875 | $ 4,824 |
Notes Receivable - Notes Receiv
Notes Receivable - Notes Receivable Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Notes receivable activities | ||
Advances under notes receivable | $ 1,366 | $ 8,531 |
Principal payments received under notes receivable | (4,732) | (3,446) |
Reclassified to lease incentives | (300) | (200) |
Notes receivable reserve | 36 | (48) |
Total | $ (3,630) | $ 4,837 |
Notes Receivable - New Loan Com
Notes Receivable - New Loan Commitment (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)item | Dec. 31, 2019USD ($) | |
Notes receivable activities | |||
Notes receivable, gross | $ 6,800 | ||
Number of beds/units under development | item | 204 | ||
Mezzanine loan with 12.0% Interest | |||
Notes receivable activities | |||
Notes receivable, gross | $ 8,566 | $ 13,284 | |
$1,250 note agreement | |||
Notes receivable activities | |||
Notes receivable, gross | $ 1,000 | ||
Interest rate (as a percent) | 5.00% | ||
Loan principal amount | $ 1,250 | ||
Committed to fund | $ 250 | ||
204-unit ILF/ALF/MC | |||
Notes receivable activities | |||
Loan Term | 5 years | ||
Interest rate (as a percent) | 12.00% | ||
204-unit ILF/ALF/MC | Mezzanine loan with 12.0% Interest | |||
Notes receivable activities | |||
Loan Term | 46 months | ||
204-unit ILF/ALF/MC | $1400 note agreement | |||
Notes receivable activities | |||
Notes receivable, gross | $ 1,124 | ||
Interest rate (as a percent) | 7.00% | ||
Loan principal amount | $ 1,400 | ||
Committed to fund | 276 | ||
204-unit ILF/ALF/MC | $550 Note Agreement | |||
Notes receivable activities | |||
Notes receivable, gross | $ 400 | ||
Interest rate (as a percent) | 7.50% | ||
Loan principal amount | $ 550 | ||
Committed to fund | $ 150 |
Lease Incentives (Details)
Lease Incentives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Lease Incentives | |||||
Non-contingent lease incentives | $ 2,401 | $ 2,401 | $ 2,552 | ||
Non-contingent lease incentives, funding | 50 | $ 322 | |||
Non-contingent lease incentives, Amortization | $ (108) | $ (100) | (317) | (281) | |
Non-contingent lease incentives, Adjustment | 115 | (11,893) | |||
Reclassified to lease incentives | 300 | 200 | |||
Non-contingent lease incentives, Write off | $ 185 | $ (12,093) |
Debt Obligations - Bank Borrowi
Debt Obligations - Bank Borrowings (Details) - Bank Borrowings - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2018 | |
Debt Obligations | ||
Maximum available under facility | $ 1,000,000,000 | $ 600,000,000 |
Additional extension period option | 1 year | |
Unused commitment fee (as a percent) | 0.20% | |
LIBOR | ||
Debt Obligations | ||
Basis spread over base rate (as a percent) | 1.15% |
Debt Obligations - Component (D
Debt Obligations - Component (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 3.95% | |
Outstanding Balance | $ 664,344 | $ 693,388 |
Available for borrowing | $ 510,100 | 527,600 |
Bank Borrowings | ||
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 1.33% | |
Outstanding Balance | $ 89,900 | 93,900 |
Available for borrowing | $ 510,100 | 506,100 |
Senior Unsecured Notes | ||
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 4.36% | |
Outstanding Balance | $ 574,444 | 599,488 |
Available for borrowing | $ 21,500 | |
Senior Unsecured Notes | Minimum | ||
Debt Obligations | ||
Interest rate (as a percent) | 3.85% | |
Senior Unsecured Notes | Maximum | ||
Debt Obligations | ||
Interest rate (as a percent) | 5.03% |
Debt Obligations - Borrowings a
Debt Obligations - Borrowings and Repayments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Borrowings | ||
Bank borrowings | $ 24,000 | $ 73,400 |
Total | 24,000 | 73,400 |
Repayments | ||
Repayment of bank borrowings | (28,000) | (20,000) |
Senior unsecured notes | (25,160) | (14,667) |
Total | (53,160) | (34,667) |
Bank Borrowings | ||
Borrowings | ||
Bank borrowings | 24,000 | 73,400 |
Repayments | ||
Repayment of bank borrowings | (28,000) | (20,000) |
Senior Unsecured Notes | ||
Repayments | ||
Senior unsecured notes | $ (25,160) | $ (14,667) |
Equity - Common Stock (Details)
Equity - Common Stock (Details) - Common Stock - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Equity | ||
Number of shares repurchased | 76,574 | 45,030 |
Equity Distribution Agreements | ||
Equity | ||
Maximum offering capacity under shelf registration statement | $ 200,000,000 | |
Shares common stock sold | 0 | |
Amount available under effective shelf registration statement | $ 200,000,000 |
Equity - Share Repurchase Plan
Equity - Share Repurchase Plan (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | |
Equity | ||
Shares authorized for repurchase | 5,000,000 | |
Number of shares purchased | 615,827 | |
Average price per share | $ 29.25 | |
Total purchase price of shares | $ 18,012,000 |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interest (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Noncontrolling interest | |||
Gross Consolidated Assets | $ 1,477,244 | $ 1,514,209 | |
Non-controlling interests | 8,404 | $ 8,483 | |
Purchase Price | $ 38,951 | ||
Partnership | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 83,429 | ||
Non-controlling interests | 8,404 | ||
2019 Acquisitions | SNF | |||
Noncontrolling interest | |||
Purchase Price | 19,500 | ||
2019 Acquisitions | ALF | |||
Noncontrolling interest | |||
Purchase Price | $ 16,719 | ||
Virginia | 2019 Acquisitions | Partnership | ALF and MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 16,895 | ||
Non-controlling interests | 919 | ||
Oregon | 2018 Acquisitions | Partnership | ALF and MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 18,447 | ||
Non-controlling interests | 1,081 | ||
Oregon | 2018 Acquisitions | Partnership | ILF | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 14,400 | ||
Non-controlling interests | 2,858 | ||
Wisconsin | 2017 Acquisitions | Partnership | ILF/ALF/MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 22,007 | ||
Non-controlling interests | 2,305 | ||
South Carolina | 2017 Acquisitions | Partnership | ALF and MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 11,680 | ||
Non-controlling interests | $ 1,241 |
Equity - Distributions (Details
Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividend Distributions | ||||||||||||
Paid | $ 67,894 | $ 68,241 | ||||||||||
Common Stock cash distributions | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | $ 0.57 | |||||
Dividends declared and paid per common share | $ 0.57 | $ 0.57 | $ 1.71 | $ 1.71 | ||||||||
Common Stock | ||||||||||||
Dividend Distributions | ||||||||||||
Declared | $ 67,894 | $ 68,241 | $ 67,894 | $ 68,241 | ||||||||
Paid | $ 67,894 | $ 68,241 | ||||||||||
Common Stock cash distributions | $ 0.19 | $ 0.19 | ||||||||||
Common Stock | Subsequent Event | ||||||||||||
Dividend Distributions | ||||||||||||
Dividends declared and paid per common share | $ 0.19 | $ 0.19 | $ 0.19 | |||||||||
Common Stock | Performance-based stock units | ||||||||||||
Dividend Distributions | ||||||||||||
Paid | $ 586 | $ 300 |
Equity - Options (Details)
Equity - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Based Compensation Plans | ||
Options outstanding (in shares) | 15,000 | |
Options exercisable (in shares) | 15,000 | |
Stock options granted (in shares) | 0 | 0 |
2015 Plan | ||
Stock Based Compensation Plans | ||
Total shares reserved for issuance of common stock related to the conversion of preferred stock | 1,400,000 | |
Stock options | ||
Stock Based Compensation Plans | ||
Options Exercised (in shares) | 5,000 | |
Weighted Average Exercise Price (in dollars per share) | $ 24.65 | |
Options Value | $ 123,000 | |
Market Value | $ 233,000 |
Equity - Restricted Stock and p
Equity - Restricted Stock and performance-based stock units (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted stock and performance-based stock units | ||
Restricted stock and performance based stock units activity | ||
Outstanding at the beginning of the year (in shares) | 345,633 | 325,750 |
Granted (in shares) | 167,375 | 147,608 |
Vested (in shares) | (166,051) | (127,725) |
Outstanding at the end of the year (in shares) | 346,957 | 345,633 |
Performance-based stock units | ||
Restricted stock and performance based stock units activity | ||
Vested (in shares) | (81,574) | (48,225) |
Equity - Restricted Stock (Deta
Equity - Restricted Stock (Details) - Restricted stock and performance-based stock units - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted stock awards | ||
Number of shares granted | 167,375 | 147,608 |
Compensation expense related to share-based award | $ 5,231,000 | $ 4,938,000 |
Nonvested awards | ||
Remaining compensation expense | 10,078,000 | |
2020 | ||
Nonvested awards | ||
Remaining compensation expense | 1,781,000 | |
2021 | ||
Nonvested awards | ||
Remaining compensation expense | 5,201,000 | |
2022 | ||
Nonvested awards | ||
Remaining compensation expense | 2,729,000 | |
2023 | ||
Nonvested awards | ||
Remaining compensation expense | $ 367,000 | |
Grant Date Price $48.95 | Three year vesting | ||
Restricted stock awards | ||
Number of shares granted | 76,464 | |
Granted (in dollars per share) | $ 48.95 | |
Vesting period | 3 years | |
Grant Date Price $49.98 | TSR Targets | ||
Restricted stock awards | ||
Number of shares granted | 66,027 | |
Granted (in dollars per share) | $ 49.98 | |
Vesting period | 4 years | |
Grant Date Price $49.98 | Accelerated TSR Targets | ||
Restricted stock awards | ||
Vesting period | 3 years | |
Grant Date Price $38.45 | Three year vesting | ||
Restricted stock awards | ||
Number of shares granted | 15,000 | |
Granted (in dollars per share) | $ 38.45 | |
Vesting period | 3 years | |
Grant Date Price $38.45 | Vesting Date, May 27, 2021 | ||
Restricted stock awards | ||
Number of shares granted | 9,884 | |
Granted (in dollars per share) | $ 38.45 | |
Grant Date Price $46.54 | Three year vesting | ||
Restricted stock awards | ||
Number of shares granted | 78,276 | |
Granted (in dollars per share) | $ 46.54 | |
Vesting period | 3 years | |
Grant Date Price $46.54 | TSR Targets | ||
Restricted stock awards | ||
Number of shares granted | 60,836 | |
Granted (in dollars per share) | $ 46.54 | |
Vesting period | 4 years | |
Grant Date Price $46.54 | Accelerated TSR Targets | ||
Restricted stock awards | ||
Vesting period | 3 years | |
Grant Date Price $44.73 | Vesting Date, May 29, 2020 | ||
Restricted stock awards | ||
Number of shares granted | 8,496 | |
Granted (in dollars per share) | $ 44.73 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Commitments (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Commitments and Contingencies | |
Investment Commitment | $ 79,767 |
2020 Funding | 16,690 |
Total Commitments funded | 27,607 |
Remaining commitment | 52,160 |
Real estate properties | |
Commitments and Contingencies | |
Investment Commitment | 28,713 |
2020 Funding | 12,487 |
Total Commitments funded | 17,459 |
Remaining commitment | 11,254 |
Accrued incentives and earn-out liabilities | |
Commitments and Contingencies | |
Investment Commitment | 9,000 |
Remaining commitment | 9,000 |
Mortgage loans | |
Commitments and Contingencies | |
Investment Commitment | 27,200 |
2020 Funding | 2,928 |
Total Commitments funded | 8,873 |
Remaining commitment | 18,327 |
Commitments To Expand and Renovate Properties | |
Commitments and Contingencies | |
Investment Commitment | 9,200 |
Contingent Funding Commitments | |
Commitments and Contingencies | |
Investment Commitment | 18,000 |
Joint venture investments | |
Commitments and Contingencies | |
Investment Commitment | 13,000 |
Remaining commitment | 13,000 |
Notes receivable | |
Commitments and Contingencies | |
Investment Commitment | 1,854 |
2020 Funding | 1,275 |
Total Commitments funded | 1,275 |
Remaining commitment | $ 579 |
Major Operators (Details)
Major Operators (Details) | 9 Months Ended |
Sep. 30, 2020propertyitem | |
Major Operators | |
Number of major operators | 2 |
Prestige Healthcare | SNF | |
Major Operators | |
Number of beds | property | 24 |
Number of beds/units | 2,922 |
Prestige Healthcare | ALF | |
Major Operators | |
Number of beds/units | 93 |
Senior Lifestyle Corporation | ALF | |
Major Operators | |
Number of beds | property | 23 |
Number of beds/units | 1,457 |
Operator Concentration Risk | SNF | |
Major Operators | |
Number of beds | property | 24 |
Number of beds/units | 2,922 |
Operator Concentration Risk | ALF | |
Major Operators | |
Number of beds | property | 23 |
Number of beds/units | 1,550 |
Total Revenue | Operator Concentration Risk | |
Major Operators | |
Concentration risk (as a percent) | 30.20% |
Total Revenue | Operator Concentration Risk | Prestige Healthcare | |
Major Operators | |
Concentration risk (as a percent) | 19.80% |
Total Revenue | Operator Concentration Risk | Senior Lifestyle Corporation | |
Major Operators | |
Concentration risk (as a percent) | 10.40% |
Total Assets | Operator Concentration Risk | |
Major Operators | |
Concentration risk (as a percent) | 28.20% |
Total Assets | Credit Concentration Risk | Prestige Healthcare | |
Major Operators | |
Concentration risk (as a percent) | 18.00% |
Total Assets | Credit Concentration Risk | Senior Lifestyle Corporation | |
Major Operators | |
Concentration risk (as a percent) | 10.20% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income | $ 12,338 | $ 1,952 | $ 63,722 | $ 12,631 | $ 27,280 | $ 20,534 | $ 20,427 | $ 78,012 | $ 68,241 |
Less income allocated to non-controlling interests | (121) | (88) | (292) | (257) | |||||
Less income allocated to participating securities: | |||||||||
Non-forfeitable dividends on participating securities | (103) | (93) | (294) | (279) | |||||
Income allocated to participating securities | (19) | (45) | (19) | ||||||
Total net income allocated to participating securities | (103) | (112) | (339) | (298) | |||||
Net income available to common stockholders | 12,114 | 27,080 | 77,381 | 67,686 | |||||
Net income for diluted net income per share | $ 12,114 | $ 27,080 | $ 77,381 | $ 67,686 | |||||
Reconciliation of shares | |||||||||
Shares for basic net income per share | 39,061 | 39,586 | 39,218 | 39,565 | |||||
Effect of dilutive securities: (Shares) | |||||||||
Total effect of dilutive securities (in shares) | 51 | 379 | 51 | 379 | |||||
Shares for diluted net income per share | 39,112 | 39,965 | 39,269 | 39,944 | |||||
Basic (in dollars per share) | $ 0.31 | $ 0.68 | $ 1.97 | $ 1.71 | |||||
Diluted (in dollars per share) | $ 0.31 | $ 0.68 | $ 1.97 | $ 1.69 | |||||
Stock options | |||||||||
Effect of dilutive securities: (Shares) | |||||||||
Stock options and performance-based stock units (in shares) | 4 | 4 | |||||||
Performance-based stock units | |||||||||
Effect of dilutive securities: (Shares) | |||||||||
Stock options and performance-based stock units (in shares) | 51 | 375 | 51 | 375 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Sep. 30, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Fair value measurements | ||
Mortgage loans receivable | $ 257,671 | $ 254,099 |
Senior unsecured notes, net of debt issue costs | $ 574,444 | $ 599,488 |
Level 3 | Senior Unsecured Notes maturing before 2026 | Discount Rate | ||
Fair value measurements | ||
Future cash outflows discount rate (as a percent) | item | 0.0375 | 0.0370 |
Level 3 | Senior Unsecured Notes maturing 2026 and after | Discount Rate | ||
Fair value measurements | ||
Future cash outflows discount rate (as a percent) | item | 0.0400 | 0.0390 |
Level 3 | Mortgage Loans Receivable | Discount Rate | ||
Fair value measurements | ||
Future cash inflows discount rate (as a percent) | item | 0.100 | 0.090 |
Carrying Value | ||
Fair value measurements | ||
Mortgage loans receivable | $ 257,671 | $ 254,099 |
Bank borrowings | 89,900 | 93,900 |
Senior unsecured notes, net of debt issue costs | 574,444 | 599,488 |
Fair Value | ||
Fair value measurements | ||
Bank borrowings | 89,900 | 93,900 |
Fair Value | Level 3 | ||
Fair value measurements | ||
Mortgage loans receivable | 299,151 | 312,824 |
Senior unsecured notes, net of debt issue costs | $ 582,480 | $ 612,375 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity | |||||||
Dividends declared and paid per common share | $ 0.57 | $ 0.57 | $ 1.71 | $ 1.71 | |||
Subsequent Event | Common Stock | |||||||
Equity | |||||||
Dividends declared and paid per common share | $ 0.19 | $ 0.19 | $ 0.19 |