Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 22, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
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 | 3011 Townsgate Road, Suite 220 | |
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, $.01 par value | |
Trading Symbol | LTC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,475,389 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000887905 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments: | ||
Land | $ 120,137 | $ 121,725 |
Buildings and improvements | 1,219,622 | 1,235,600 |
Accumulated depreciation and amortization | (383,782) | (387,751) |
Operating real estate property, net | 955,977 | 969,574 |
Properties held-for-sale, net of accumulated depreciation: 2024-$2,773; 2023-$3,616 | 389 | 18,391 |
Real property investments, net | 956,366 | 987,965 |
Financing receivables, net of credit loss reserve: 2024-$1,980; 2023-$1,980 | 196,010 | 196,032 |
Mortgage loans receivable, net of credit loss reserve: 2024-$4,845; 2023-$4,814 | 480,250 | 477,266 |
Real estate investments, net | 1,632,626 | 1,661,263 |
Notes receivable, net of credit loss reserve: 2024-$605; 2023-$611 | 59,946 | 60,490 |
Investments in unconsolidated joint ventures | 19,340 | 19,340 |
Investments, net | 1,711,912 | 1,741,093 |
Other assets: | ||
Cash and cash equivalents | 9,010 | 20,286 |
Debt issue costs related to revolving line of credit | 1,786 | 1,557 |
Interest receivable | 55,842 | 53,960 |
Straight-line rent receivable | 19,075 | 19,626 |
Lease incentives | 3,578 | 2,607 |
Prepaid expenses and other assets | 17,192 | 15,969 |
Total assets | 1,818,395 | 1,855,098 |
LIABILITIES | ||
Revolving line of credit | 277,050 | 302,250 |
Term loans, net of debt issue costs: 2024-$305; 2023-$342 | 99,695 | 99,658 |
Senior unsecured notes, net of debt issue costs: 2024-$1,194; 2023-$1,251 | 483,466 | 489,409 |
Accrued interest | 4,861 | 3,865 |
Accrued expenses and other liabilities | 34,481 | 43,649 |
Total liabilities | 899,553 | 938,831 |
Stockholders' equity: | ||
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2024-43,271; 2023-43,022 | 433 | 430 |
Capital in excess of par value | 996,631 | 991,656 |
Cumulative net income | 1,658,625 | 1,634,395 |
Accumulated other comprehensive income | 6,488 | 6,110 |
Cumulative distributions | (1,775,928) | (1,751,312) |
Total LTC Properties, Inc. stockholders' equity | 886,249 | 881,279 |
Non-controlling interests | 32,593 | 34,988 |
Total equity | 918,842 | 916,267 |
Total liabilities and equity | $ 1,818,395 | $ 1,855,098 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Properties held-for-sale, accumulated depreciation | $ 2,773 | $ 3,616 |
Financial receivable credit loss reserve | 1,980 | 1,980 |
Mortgage loans receivable, credit loss reserve | 4,845 | 4,814 |
Notes receivable, credit loss reserve | $ 605 | $ 611 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000 | 60,000 |
Common stock, shares issued (in shares) | 43,271 | 43,022 |
Common stock, shares outstanding (in shares) | 43,271 | 43,022 |
Term loans | ||
Debt issue costs, net | $ 305 | $ 342 |
Senior Unsecured Notes | ||
Debt issue costs, net | $ 1,194 | $ 1,251 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Rental income | $ 33,549 | $ 31,735 |
Interest income from financing receivables | 3,830 | 3,751 |
Interest income from mortgage loans | 12,448 | 11,244 |
Interest and other income | 1,539 | 2,770 |
Total revenues | 51,366 | 49,500 |
Expenses: | ||
Interest expense | 11,045 | 10,609 |
Depreciation and amortization | 9,095 | 9,210 |
Impairment loss | 434 | |
Provision for credit losses | 24 | 1,731 |
Transaction costs | 266 | 117 |
Property tax expense | 3,383 | 3,293 |
General and administrative expenses | 6,491 | 6,294 |
Total expenses | 30,304 | 31,688 |
Other operating income: | ||
Gain on sale of real estate, net | 3,251 | 15,373 |
Operating income | 24,313 | 33,185 |
Income from unconsolidated joint ventures | 376 | 376 |
Net income | 24,689 | 33,561 |
Income allocated to non-controlling interests | (459) | (427) |
Net income attributable to LTC Properties, Inc. | 24,230 | 33,134 |
Income allocated to participating securities | (165) | (205) |
Net income available to common stockholders | $ 24,065 | $ 32,929 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.56 | $ 0.80 |
Diluted (in dollars per share) | $ 0.56 | $ 0.80 |
Weighted average shares used to calculate earnings per common share: | ||
Basic (in shares) | 42,891 | 41,082 |
Diluted (in shares) | 43,032 | 41,189 |
Dividends declared and paid per common share (in dollars per share) | $ 0.57 | $ 0.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 24,689 | $ 33,561 |
Unrealized gain (loss) on cash flow hedges before reclassification | 1,414 | (550) |
Gains reclassified from accumulated other comprehensive income to interest expense | (1,036) | (812) |
Comprehensive income | 25,067 | 32,199 |
Less: Comprehensive income allocated to non-controlling interests | (459) | (427) |
Comprehensive income attributable to LTC Properties, Inc. | $ 24,608 | $ 31,772 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Parent | Common Stock | Capital in Excess of Par Value | Cumulative Net Income | Accumulated OCI | Cumulative Distributions | Non-controlling Interests | Total |
Balance at beginning of period at Dec. 31, 2022 | $ 828,367 | $ 412 | $ 931,124 | $ 1,544,660 | $ 8,719 | $ (1,656,548) | $ 21,940 | $ 850,307 |
Balance (in shares) at Dec. 31, 2022 | 41,262 | |||||||
Equity activity | ||||||||
Issuance of common stock | 1,697 | 1,697 | 1,697 | |||||
Issuance of common stock (in shares) | 48 | |||||||
Issuance of restricted stock | $ 1 | (1) | ||||||
Issuance of restricted stock (in shares) | 128 | |||||||
Common stock cash distributions | (23,563) | (23,563) | (23,563) | |||||
Stock-based compensation expense | 2,088 | 2,088 | 2,088 | |||||
Net income | 33,134 | 33,134 | 427 | 33,561 | ||||
Non-controlling interests contributions | 3,831 | 3,831 | ||||||
Non-controlling interest distributions | (406) | (406) | ||||||
Cash paid for taxes in lieu of common shares | (1,538) | (1,538) | (1,538) | |||||
Cash paid for taxes in lieu of common shares (in shares) | (41) | |||||||
Fair market valuation adjustment for interest rate swap | (1,362) | (1,362) | (1,362) | |||||
Other (in shares) | (1) | |||||||
Balance at end of period at Mar. 31, 2023 | 838,823 | $ 413 | 933,370 | 1,577,794 | 7,357 | (1,680,111) | 25,792 | 864,615 |
Balance (in shares) at Mar. 31, 2023 | 41,396 | |||||||
Balance at beginning of period at Dec. 31, 2023 | 881,279 | $ 430 | 991,656 | 1,634,395 | 6,110 | (1,751,312) | 34,988 | 916,267 |
Balance (in shares) at Dec. 31, 2023 | 43,022 | |||||||
Equity activity | ||||||||
Issuance of common stock | 4,337 | $ 1 | 4,336 | 4,337 | ||||
Issuance of common stock (in shares) | 139 | |||||||
Issuance of restricted stock | $ 2 | (2) | ||||||
Issuance of restricted stock (in shares) | 160 | |||||||
Common stock cash distributions | (24,616) | (24,616) | (24,616) | |||||
Stock-based compensation expense | 2,202 | 2,202 | 2,202 | |||||
Net income | 24,230 | 24,230 | 459 | 24,689 | ||||
Non-controlling interests contributions | 50 | 50 | ||||||
Non-controlling interest distributions | (2,904) | (2,904) | ||||||
Cash paid for taxes in lieu of common shares | (1,532) | (1,532) | (1,532) | |||||
Cash paid for taxes in lieu of common shares (in shares) | (50) | |||||||
Fair market valuation adjustment for interest rate swap | 378 | 378 | 378 | |||||
Other | (29) | (29) | (29) | |||||
Balance at end of period at Mar. 31, 2024 | $ 886,249 | $ 433 | $ 996,631 | $ 1,658,625 | $ 6,488 | $ (1,775,928) | $ 32,593 | $ 918,842 |
Balance (in shares) at Mar. 31, 2024 | 43,271 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||
Common Stock cash distributions | $ 0.57 | $ 0.57 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES: | ||
Net income | $ 24,689 | $ 33,561 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,095 | 9,210 |
Stock-based compensation expense | 2,202 | 2,088 |
Impairment loss | 434 | |
Gain on sale of real estate, net | (3,251) | (15,373) |
Income from unconsolidated joint ventures | (376) | (376) |
Income distributions from unconsolidated joint ventures | 112 | |
Straight-line rental adjustment | 550 | 465 |
Exchange of prepayment fee for participating interest in mortgage loan | (1,380) | |
Amortization of lease incentives | 233 | 209 |
Provision for credit losses | 24 | 1,731 |
Application of interest reserve | (52) | (1,149) |
Amortization of debt issue costs | 267 | 300 |
Other non-cash items, net | 24 | 23 |
Change in operating assets and liabilities | ||
Lease incentives funded | (1,395) | |
Increase in interest receivable | (2,220) | (2,079) |
Increase (decrease) in accrued interest payable | 996 | (1,112) |
Net change in other assets and liabilities | (9,948) | (8,513) |
Net cash provided by operating activities | 20,950 | 18,039 |
INVESTING ACTIVITIES: | ||
Investment in real estate properties | (315) | |
Investment in real estate capital improvements | (1,329) | (2,608) |
Proceeds from sale of real estate, net | 25,306 | 31,616 |
Investment in financing receivables | (112,712) | |
Investment in real estate mortgage loans receivable | (3,128) | (53,226) |
Principal payments received on mortgage loans receivable | 125 | 125 |
Advances and originations under notes receivable | (605) | |
Principal payments received on notes receivable | 550 | 5,180 |
Net cash provided by (used in) investing activities | 21,209 | (132,230) |
FINANCING ACTIVITIES: | ||
Borrowings from revolving line of credit | 10,300 | 162,700 |
Repayment of revolving line of credit | (35,500) | (22,600) |
Principal payments on senior unsecured notes | (6,000) | (7,000) |
Proceeds from common stock issued | 4,453 | 1,777 |
Distributions paid to stockholders | (24,616) | (23,563) |
Distributions paid to non-controlling interests | (109) | (406) |
Financing costs paid | (402) | (20) |
Cash paid for taxes in lieu of shares upon vesting of restricted stock | (1,532) | (1,538) |
Other | (29) | |
Net cash (used in) provided by financing activities | (53,435) | 109,350 |
Decrease in cash and cash equivalents | (11,276) | (4,841) |
Cash and cash equivalents, beginning of period | 20,286 | 10,379 |
Cash and cash equivalents, end of period | 9,010 | 5,538 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 9,782 | 11,421 |
Non-cash investing and financing transactions: | ||
Contribution from non-controlling interest | 3,831 | |
Exchange of mezzanine loan and related prepayment fee for participating interest in mortgage loan | (8,841) | |
Reserves withheld at financing and mortgage loan receivable origination | (5,147) | |
Accretion of interest reserve recorded as mortgage loan receivable | 52 | 1,149 |
Increase (decrease) in fair value of interest rate swap agreements | 378 | (1,362) |
Distributions paid to non-controlling interests | 439 | |
Distributions paid to non-controlling interests related to property sale | $ 2,305 | |
Mortgage loan receivable reserve withheld at origination | $ 750 |
General
General | 3 Months Ended |
Mar. 31, 2024 | |
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-leasebacks, mortgage financing, joint ventures and structured finance solutions including preferred equity and 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. We also invest in other (“OTH”) types of properties, such as land parcels, projects under development (“UDP”) and behavioral health care hospitals. 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 months ended March 31, 2024 and 2023 are not necessarily indicative of the results for a full year. We apply Accounting Standards Codification Topic 326, Financial Instruments-Credit Losses (“ASC 326”), which requires a forward-looking “expected loss” model, to estimate our loan losses on our mortgage loans, financing receivables and notes receivable. In determining the “expected” credit loss reserves on these instruments, we utilize the probability of default and discounted cash flow methods. Further, we stress-test the results to reflect the impact of unknown adverse future events including recessions. The expected credit losses related to our financial instruments that are within the scope of ASC 326 are as follows ( in thousands Balance Balance at Increase at Description 12/31/2023 /(Decrease) 3/31/2024 Credit Loss Reserve- Financing Receivables $ 1,980 $ — $ 1,980 Credit Loss Reserve- Mortgage Loans Receivable $ 4,814 $ 31 $ 4,845 Credit Loss Reserve-Notes Receivable $ 611 $ (6) $ 605 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 recognizing credit loss expense. As of March 31, 2024, the total balance of accrued interest receivable of $55,842,000 was not included in the measurement of expected credit loss. For the three months ended March 31, 2024 and 2023, we did not recognize any write-off related to accrued interest receivable. 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. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2024 | |
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. The following table summarizes our investments in owned properties at March 31, 2024 (dollar amounts in thousands) Average Percentage Number Number of Investment Gross of of SNF ALF per Type of Property Investment Investment Properties (1) Beds (2) Units (2) Bed/Unit Assisted Living $ 733,901 54.6 % 76 — 4,421 $ 166.00 Skilled Nursing 597,015 44.5 % 50 6,113 236 $ 94.03 Other (3) 12,005 0.9 % 1 118 — — Total $ 1,342,921 100.0 % 127 6,231 4,657 (1) We own properties in 23 states that are leased to 23 different operators. (2) Includes three parcels of land held-for-use, and one behavioral health care hospital. Many of our existing leases contain renewal options that, if exercised, could result in the amount of rent payable upon renewal being greater or less than that currently being paid. During 2023, Brookdale Senior Living Communities, Inc. (“Brookdale”) elected not to exercise its renewal option under a master lease that matured on December 31, 2023. The 35- property assisted living portfolio was apportioned as follows (dollar amounts in thousands) Type Number Number First Lease of of of Year Lease Commencement State Property Properties Units Rent Term November 2023 OK ALF 5 (1) 184 $ 960 Three years January 2024 CO, KS, OH, TX ALF 17 (2) 738 9,325 Six years January 2024 NC ALF 5 (3) 210 3,300 Six years 27 1,132 $ 13,585 Type Number Number of of of Sales Net Year sold State Property Properties Units Price Proceeds (4) 2023 FL ALF 4 176 $ 18,750 $ 14,310 (5) 2023 OK ALF 1 37 800 769 2023 SC ALF 3 128 8,409 8,153 ALF 8 341 $ 27,959 $ 23,232 Total 35 1,473 (1) These communities were transitioned to an existing LTC operator. The new master lease includes a purchase option that can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option. Rent increases to $984 in the second year, and $1,150 in the third year. (2) These communities were re-leased to Brookdale under a new master lease. Rent escalates by approximately 2.0% annually. The new master lease includes a purchase option that can be exercised in 2029. We also agreed to fund $7,200 for capital expenditures for the first two years of the lease at an initial rate of 8.0% escalating by approximately 2.0% annually thereafter. (3) These communities were transitioned to an operator new to us. Rent escalates by approximately 3.0% annually. (4) Net of transaction costs and seller financing, if any. (5) We provided seller financing collateralized by two of the Florida properties, with a total of 92 units. The $4,000 seller-financed mortgage loan has a two-year term, with a one-year extension, at an interest rate of 8.75% . During the three months ended March 31, 2024, a master lease covering 11 skilled nursing centers, that was scheduled to mature in January 2024, was renewed for seven months extending the maturity to August 2024. The master lease was renewed at the current annualized rent of $8,000,000, or $4,667,000 for seven months in 2024. The centers have a total of 1,444 beds and are located in Texas. Subsequent to March 31, 2024, we executed a term sheet with the operator, to amend the master lease extending the term through December 2028. Annual rent will increase by $1,000,000 to $9,000,000 for 2024. Rent will increase to $9,500,000 for 2025, and $10,000,000 for 2026, escalating 3.3% annually thereafter. The amended master lease provides the operator with two five-year renewal options. As a condition of the amendment, the operator will repay $11,900,000 on its $13,531,000 working capital note during the second quarter of 2024. Upon the repayment, the remaining balance of the working capital note will be interest-free and repaid in installments through 2028. Additionally, subsequent to March 31, 2024, another operator exercised its renewal option under its master lease for five years, from March 2025 through February 2030. Annual cash and GAAP rent for 2024 are $8,004,000 and $7,049,000, respectively escalating 2.5% annually. The master lease covers 666 beds across four skilled nursing centers, three in Texas and one in Wisconsin, and a behavioral health care hospital in Nevada. We monitor the collectability of our receivable balances, including deferred rent receivable balances, on an ongoing basis. We write-off uncollectible operator receivable balances, including straight- line rent receivable and lease incentives balances, as a reduction to rental income in the period such balances are no longer probable of being collected. Therefore, recognition of rental income is limited to the lesser of the amount of cash collected or rental income reflected on a “straight-line” basis for those customer receivable balances deemed uncollectible. We wrote-off straight-line rent receivable and lease incentives balances of $191,000 and $144,000 for the three months ended March 31, 2024 and 2023, respectively, as a result of property sales and lease terminations. We continue to take into account the current financial condition of our operators, including consideration of the impact of COVID-19, in our estimation of uncollectible accounts at March 31, 2024. We are closely monitoring the collectability of such rents and will adjust future estimations as appropriate as further information becomes known. The following table summarizes components of our rental income for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, Rental Income 2024 2023 Contractual cash rental income $ 30,951 (1) $ 29,125 (1) Variable cash rental income 3,381 (2) 3,284 (2) Straight-line rent (550) (465) Amortization of lease incentives (233) (209) Total $ 33,549 $ 31,735 (1) Increased primarily due to $2,377 repayment of rent credit in connection with the sale of our interest in a consolidated joint venture (“JV), rental income from 2023 acquisitions and annual rent escalations, partially offset by property sales and transitioned portfolios. (2) The variable rental income for the three months ended March 31, 2024, and 2023 includes reimbursement of real estate taxes by our lessees. 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 amounts in thousands): Type Number of of Gross Net Book Option State Property Properties Investments (1) Value Window California ALF/MC 2 $ 38,895 $ 32,542 2023-2029 Colorado/Kansas/Ohio/Texas ALF/MC 17 58,723 26,089 2029 (2) Florida SNF 3 76,669 76,669 2025-2027 Georgia/South Carolina ALF/MC 2 31,433 24,682 2027 North Carolina ALF/MC 11 121,321 121,321 2025-2028 (3) North Carolina ALF 5 14,404 6,844 2029 (4) Ohio MC 1 16,161 13,378 2024-2025 Ohio ILF/ALF/MC 1 54,758 52,946 2025-2027 Oklahoma ALF/MC 5 11,221 4,332 2027-2029 (5) Tennessee SNF 2 5,275 2,227 2023-2024 Texas SNF 4 52,726 50,036 2027-2029 (6) Total $ 481,586 $ 411,066 (1) Gross investments include previously recorded impairment losses, if any. (2) During 2023, we released 17 ALFs with a total of 738 units to Brookdale under a new six-year master lease. The new master lease commenced in January 2024 and includes a purchase option that can be exercised in 2029. See above for more information. (3) During 2023, we entered into a JV that purchased 11 ALFs and MCs with a total of 523 units and leased the communities under a 10-year master lease. The master lease provides the operator with the option to buy up to 50% of the properties at the beginning of the third lease year, and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit IRR of 9.0% on any portion of the properties being purchased. For more information regarding this transaction see Financing Receivables below. (4) During 2023, we transferred five ALFs with a total of 210 units from Brookdale to an operator new to us. The new master lease commenced in January 2024 and includes a purchase option that can be exercised in 2029. See above for more information. (5) During 2023, we transferred five ALFs in Oklahoma with a total of 184 units from Brookdale to an existing operator. The new master lease commenced in November 2023 and includes a purchase option that can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option. See above for more information. (6) During 2022, we purchased four skilled nursing centers and leased these properties under a 10-year lease with an existing operator. The lease allows the operator to elect either an earn-out payment or purchase option. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the earn-out see Note 8. Commitments and Contingencies . Impairment Loss. Properties Held -for-Sale. dollar amounts in thousands Type Number Number of of of Gross Accumulated State Property Properties Beds/units Investment Depreciation At March 31, 2024 TX ALF (1) 2 n/a (1) $ 3,162 $ 2,773 At December 31, 2023 WI ALF (2) 1 110 $ 22,007 $ 3,616 (1) These closed properties were sold subsequent to March 31, 2024. (2) This community was sold during the three months ended March 31, 2024. Acquisitions. During the three months ended March 31, 2024, we acquired a parcel of land in Kansas adjacent to an existing community operated by Brookdale for a total cost of $315,000 . Rent was increased by 8% of our total cost of the investment. During the three months ended March 31, 2023, we did not have any acquisitions. Intangible Assets. We make estimates as part of our allocation of the purchase price of acquisitions to various components of acquisition based upon the fair value of each component. In determining fair value, we use current appraisals or other third-party opinions of value. The most significant components of our allocations are typically the allocation of fair value to land and buildings, and for certain of our acquisitions, in-place leases and other intangible assets. In the case of the value of in-place leases, we make the best estimates based on the evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during the hypothetical expected lease-up periods, market conditions and costs to execute similar leases. (in thousands) March 31, 2024 December 31, 2023 Accumulated Accumulated Assets Cost Amortization Net Cost Amortization Net In-place leases $ 11,155 (1) $ (6,218) (2) $ 4,937 $ 11,348 (1) $ (6,109) (2) $ 5,239 Tax abatement intangible $ 8,309 (3) $ (578) (3) $ 7,731 $ 8,309 (3) $ (405) (3) $ 7,904 (1) Included in the Buildings and improvements line item in our Consolidated Balance Sheets . (2) Included in the Accumulated depreciation and amortization line item in our Consolidated Balance Sheets. (3) Included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets. Improvements. During he following capital improvement projects (in thousands) : Three Months Ended March 31, Type of Property 2024 2023 Assisted Living Communities $ 1,133 $ 1,548 Skilled Nursing Centers 196 973 Other — 87 Total $ 1,329 $ 2,608 Properties Sold (dollar amounts in thousands): Type Number Number of of of Sales Carrying Net Year State Properties Properties Beds/Units Price Value (Loss) Gain (1) 2024 Florida ALF 1 60 $ 4,500 $ 4,579 $ (319) Texas ALF 5 208 1,600 1,282 (356) Wisconsin ALF 1 110 20,193 (2) 16,195 3,986 n/a n/a — — — — (60) (3) Total 7 378 $ 26,293 $ 22,056 $ 3,251 2023 Kentucky ALF 1 60 $ 11,000 $ 10,710 $ 72 New Mexico SNF 2 235 21,250 5,379 15,301 Total 3 295 $ 32,250 $ 16,089 $ 15,373 ( (1) Calculation of net gain includes cost of sales and write-off of straight-line receivable and lease incentives, when applicable. (2) Represents the price to sell our portion of interest in a JV, net of the JV partner’s $2,305 contributions in the joint venture. (3) We recognized additional loss due to additional incurred costs related to properties sold during 2023 . Financing Receivables. Financing receivables Consolidated Balance Sheets Interest income from financing receivables Consolidated Statements of Income The following tables provide information regarding our investments in financing receivables ( dollar amounts in thousands Type Number Number Investment of of of Gross LTC Year State Properties Properties Beds/Units Investments Contributions 2023 NC ALF/MC 11 523 $ 121,321 $ 117,490 2022 FL SNF 3 299 76,669 62,344 14 822 $ 197,990 $ 179,834 Type Initial Interest Income from Financing Receivables Lease of Contractual Three Months Ended March 31, Maturity Properties Cash Yield 2024 2023 2033 (1) ALF/MC 7.25 % $ 2,426 $ 2,345 2032 (2) SNF 7.25 % 1,404 1,406 $ 3,830 $ 3,751 (1) The JV leased these communities back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options. The contractual initial cash yield of 7.25% increases to 7.5% in year three then escalates thereafter based on CPI subject to a floor of 2.0% and a ceiling of 4.0% . The JV provided the seller-lessee with a purchase option to buy up to 50% of the properties at the beginning of the third lease year and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit Internal Rate of Return (“IRR”) of 9.0% . (2) The JV leased the centers back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option, exercisable at the beginning of the fourth year through the end of the fifth year. Mortgage Loans. (dollar amounts in thousands) Type Percentage Number of Investment Gross of of SNF ALF per Interest Rate Maturity State Investment Property Investment Loans (1) Properties (2) Beds Units Bed/Unit 7.5% 2024 MO $ 2,013 OTH 0.4 % 1 — (3) — — $ n/a 7.5% 2024 LA 29,346 SNF 6.0 % 1 1 189 — $ 155.27 7.5% 2024 GA 51,111 ALF 10.5 % 1 1 — 203 $ 251.78 8.8% 2025 FL 4,000 ALF 0.8 % 1 2 — 92 $ 43.48 7.8% 2025 FL 16,706 ALF 3.5 % 1 1 — 112 $ 149.16 7.3% 2025 NC 10,750 ALF 2.2 % 1 1 — 45 $ 238.89 7.3% (4) 2025 NC/SC 58,519 ALF 12.1 % 1 13 — 523 $ 111.89 7.3% (4) 2026 NC 34,043 ALF 7.0 % 1 4 — 217 $ 156.88 7.3% (4) 2026 NC 826 OTH 0.2 % 1 — (5) — — $ n/a 8.8% (6) 2026 MI 2,940 UDP 0.6 % 1 — (6) — — $ n/a 8.8% 2028 IL 16,500 SNF 3.4 % 1 1 150 — $ 110.00 10.8% (7) 2043 MI 183,966 SNF 37.9 % 1 15 1,875 — $ 98.12 9.8% (7) 2045 MI 39,850 SNF 8.2 % 1 4 480 — $ 83.02 10.1% (7) 2045 MI 19,700 SNF 4.1 % 1 2 201 — $ 98.01 10.5% (7) 2045 MI 14,825 SNF 3.1 % 1 1 146 — $ 101.54 Total $ 485,095 100.0 % 15 46 3,041 1,192 $ 114.60 (1) Some loans contain certain guarantees and provide for certain facility fees. (2) Our mortgage loans are secured by properties located in eight states with nine borrowers. (3) Represents a mortgage loan secured by a parcel of land for the future development of a 91 -bed post-acute SNF. (4) Represents the initial rate with an IRR of 8% . (5) Represents a mortgage loan secured by a parcel of land in North Carolina held for future development of a seniors housing community. (6) During the third quarter of 2023, we committed to fund a $19,500 mortgage loan for the construction of an 85 -unit ALF and MC in Michigan. The borrower contributed $12,100 of equity, which initially funded the construction. In 2024, once all of the borrower’s equity was drawn, we began funding the commitment. Our remaining commitment is $16,600 . The interest-only loan term is approximately three years at a rate of 8.75% , and includes two , one-year extensions, each of which is contingent on certain coverage thresholds. (7) Mortgage loans provide for 2.25% annual increases in the interest rate. The following table summarizes our mortgage loan activity for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Originations and funding under mortgage loans receivable $ 3,128 (1) $ 62,844 (2) Application of interest reserve 14 1,149 Scheduled principal payments received (125) (125) Mortgage loan premium amortization (2) (2) Provision for loan loss reserve (31) (639) Net increase in mortgage loans receivable $ 2,984 $ 63,227 (1) We funded the following: (a) $2,940 under a $19,500 mortgage loan commitment for the construction of an 85 -unit ALF and MC in Michigan. The borrower contributed $12,100 of equity upon origination in July 2023, which was used to initially fund the construction. Our remaining commitment is $16,600 . The interest-only loan term is approximately three years at a rate of 8.75% , and includes two , one-year extensions, each of which is contingent on certain coverage thresholds; and (b) $188 of additional funding under other mortgage loan receivables. (2) We originated and funded the following: (a) $10,750 mortgage loan secured by a 45 -unit MC located in North Carolina. The loan carries a two-year term with an interest-only rate of 7.25% and an IRR of 9.0% ; (b) $51,111 mortgage loan investment secured by a 203 -unit ILF, ALF and MC located in Georgia. We acquired a participating interest owned by existing lenders for $42,251 in addition to converting our $7,461 mezzanine loan in the property into a participating interest in the mortgage loan. The mortgage loan matures in October 2024 and our investment is at an initial rate of 7.5% with an IRR of 7.75% . We recorded $1,380 of additional interest income in connection with the effective prepayment of the mezzanine loan in the first quarter of 2023; and (c) $983 of additional funding under other mortgage loans receivable. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2024 | |
Investment in Unconsolidated Joint Ventures | |
Investment in Unconsolidated Joint Ventures | 3. Investment in Unconsolidated Joint Ventures We have preferred equity investments in 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 JVs as we do not have both: 1) the power to direct the activities that most significantly affect the JVs’ 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 have accounted for the JVs using the equity method of accounting. The following table provides information regarding these preferred equity investments (dollar amounts in thousands): Type Type Total Contractual Number of of Preferred Cash of Carrying State Properties Investment Return Portion Beds/ Units Value Washington ALF/MC Preferred Equity (1) 12 % 7 % 95 $ 6,340 (1) Washington ILF/ALF Preferred Equity (2) 14 % 8 % 267 13,000 (2) Total (3) 362 $ 19,340 (1) Our investment represents 15.5% of the 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% , depending upon timing of redemption. We have the option to require the JV partner to purchase our preferred equity interest at any time between August 17, 2031 and December 31, 2036. (2) Our investment represents 11.6% of the estimated total investment. The preferred equity investment earns an initial cash rate of 8% with an IRR of 14% . The JV partner has the option to buy out our investment at any time after August 31, 2023 at the IRR rate. Also, we have the option to require the JV partner to purchase our preferred equity interest at any time between August 31, 2027 and, upon project completion and leasing the property, prior to the end of the first renewal term of the lease. (3) Subsequent to March 31, 2024, we originated a $12,700 mortgage loan to a current operator in order to acquire a skilled nursing and assisted living campus in Texas. The mortgage loan is secured by this property. In accordance with GAAP, this mortgage loan was determined to be an acquisition, development and construction (“ADC”) loan and will be accounted for as an unconsolidated JV. The campus was built in 2017 and includes 78 units (48 skilled nursing and 30 assisted living) and 104 licensed beds (70 skilled nursing and 34 assisted living). The five-year mortgage loan is interest only at a current rate of 9.15% . The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the three months ended March 31, 2024 and 2023 (in thousands): Type of Capital Income Cash Income Non-cash Year Properties Contribution Recognized Earned Income Accrued 2024 ALF/MC $ — $ 112 $ 112 $ — ILF/ALF (1) — 264 — 264 Total $ — $ 376 $ 112 $ 264 2023 ALF/MC $ — $ 112 $ — $ 112 UDP (1) — 264 — 264 Total $ — $ 376 $ — $ 376 (1) The JV developed and owns a 267 -unit ILF and ALF in Washington. The development project was completed during the fourth quarter of 2023. |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2024 | |
Notes Receivable. | |
Notes Receivable | 4. Notes Receivable Notes receivable consist of mezzanine loans and working capital loans. The following table summarizes our investments in notes receivable at March 31, 2024 ( dollar amounts in thousands Interest Type of Gross Type of Rate IRR Maturity Loan Investment # of loans Property 4.0% — 2024 Working capital $ 13,531 1 SNF 5.0% — 2025 Working capital 732 1 ALF 8.0% 11.0 % 2027 Mezzanine 25,000 1 ALF 8.8% 12.0 % 2028 Mezzanine 17,000 1 ALF 6.5% — 2030 Working capital 138 1 SNF 7.3% — 2030 Working capital 500 1 ALF 7.4% — 2030 Working capital 957 1 ALF 0.0% — 2031 Working capital 2,693 1 ALF $ 60,551 (1) 8 (1) Excludes the impact of credit loss reserve. The following table is a summary of our notes receivable components as of March 31, 2024 and December 31, 2023 (in thousands): At March 31, 2024 At December 31, 2023 Mezzanine loans $ 42,000 $ 42,000 Working capital loans 18,551 19,101 Notes receivable credit loss reserve (605) (611) Total $ 59,946 $ 60,490 The following table summarizes our notes receivable activity for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Advances under notes receivable $ — $ 605 Principal payments received under notes receivable (550) (12,641) (1) Recovery of credit losses 6 120 Net decrease in notes receivable $ (544) $ (11,916) (1) During 2023, we received $4,545 , which includes a prepayment fee and the exit IRR totaling $190 from a mezzanine loan prepayment. The mezzanine loan was on a 136 -unit ILF in Oregon. Additionally, another $7,461 mezzanine loan was effectively prepaid through converting it as part of our $51,111 investment in a participating interest in an existing mortgage loan that is secured by a 203 -unit ALF, ILF and MC located in Georgia. We recorded $1,380 of interest income in connection with the effective prepayment of the mezzanine loan. |
Lease Incentives
Lease Incentives | 3 Months Ended |
Mar. 31, 2024 | |
Lease Incentives | |
Lease Incentives | 5. Lease Incentives Our non-contingent lease incentive balances at March 31, 2024 and December 31, 2023 were $3,578,000 and $2,607,000, respectively. The following table summarizes our lease incentives activity for the three months ended March 31, 2024 and 2023 (in thousands) Three Months Ended March 31, 2024 2023 Lease incentives funded $ 1,395 (1) $ — Amortization of lease incentives (233) (209) Other adjustments (191) (2) (9) (2) Net increase (decrease) in non-contingent lease incentives $ 971 $ (218) (1) Included in the balance is $1,107 related to transitioning the Brookdale portfolio. (2) Primarily relates to lease incentive balance write-off related to property sales. 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 | 3 Months Ended |
Mar. 31, 2024 | |
Debt Obligations | |
Debt Obligations | 6. Debt Obligations Unsecured Credit Facility. Based on our leverage at March 31, 2024, the facility provides for interest annually at Adjusted SOFR plus 115 basis points and a facility fee of 20 basis points and the Term Loans provide for interest annually at Adjusted SOFR plus 135 basis points. Interest Rate Swap Agreements. In connection with entering into the Term Loans described above, we entered into four Consolidated Balance Sheets Prepaid expenses and other assets in the fair value of these instruments recognized in Accumulated other comprehensive income (loss) Consolidated Balance Sheets Information regarding our interest rate swaps measured at fair value, which are classified as Level 2 of the fair value hierarchy is presented below ( dollar amounts in thousands Notional Fair Value at Date Entered Maturity Date Swap Rate Rate Index Amount March 31, 2024 December 31, 2023 November 2021 November 19, 2025 2.62 % 1-month SOFR $ 50,000 $ 2,750 $ 2,698 November 2021 November 19, 2026 2.76 % 1-month SOFR 50,000 3,738 3,412 $ 100,000 $ 6,488 $ 6,110 Senior Unsecured Notes. The senior unsecured notes and the Credit Agreement, including the Revolving Line of Credit and the Term Loans, contain financial covenants, which are measured quarterly, that require us to maintain, among other things: ● a ratio of total indebtedness to total asset value not greater than 0.6 to 1.0; ● a ratio of secured debt to total asset value not greater than 0.35 to 1.0; ● a ratio of unsecured debt to the value of the unencumbered asset value not greater than 0.6 to 1.0; and ● a ratio of EBITDA, as calculated in the debt obligation, to fixed charges not less than 1.50 to 1.0. At March 31, 2024, we were in compliance with all applicable financial covenants. These debt obligations also contain additional customary covenants and events of default that are subject to a number of important and significant limitations, qualifications and exceptions. The following table sets forth information regarding debt obligations by component as of March 31, 2024 and December 31, 2023 ( dollar amounts in thousands): At March 31, 2024 At December 31, 2023 Applicable Available Available Interest Outstanding for Outstanding for Debt Obligations Rate (1) Balance Borrowing Balance Borrowing Revolving line of credit 6.52% $ 277,050 $ 122,950 $ 302,250 $ 97,750 Term loans, net of debt issue costs 2.69% 99,695 — 99,658 — Senior unsecured notes, net of debt issue costs 4.20% 483,466 — 489,409 — Total 4.77% $ 860,211 $ 122,950 $ 891,317 $ 97,750 (1) Represents weighted average of interest rate as of March 31, 2024. During the three months ended March 31, 2024 and 2023, our debt borrowings and repayments were as follows ( in thousands Three Months Ended March 31, 2024 2023 Debt Obligations Borrowings Repayments Borrowings Repayments Revolving line of credit $ 10,300 $ (35,500) $ 162,700 $ (22,600) Senior unsecured notes — (6,000) — (7,000) Total $ 10,300 $ (41,500) $ 162,700 $ (29,600) |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity | |
Equity | 7. Equity Non-controlling Interests. As of March 31, 2024, we have the following consolidated VIEs (in thousands): Gross Investment Property Consolidated Non-Controlling Year Purpose Type State Assets (1) Interests 2023 Owned real estate ILF/ALF/MC OH $ 54,758 $ 9,134 2023 Owned real estate ALF/MC NC 121,321 3,831 2022 Owned real estate SNF FL 76,669 14,325 2018 Owned real estate ILF OR 14,650 2,907 2018 Owned real estate and development ALF/MC OR 18,452 1,156 2017 Owned real estate ALF/MC SC 11,680 1,240 Total $ 297,530 $ 32,593 (1) Includes the total real estate investments and excludes intangible assets. Common Stock. During the three months ended March 31, 2023, we sold 48,500 shares of common stock for $1,777,000 in net proceeds under our Equity Distribution Agreements. In conjunction with the sale of common stock, we incurred $80,000 of costs associated with this agreement which have been recorded in additional paid in capital as a reduction of proceeds received. During the three months ended March 31, 2024, we sold 139,100 shares of common stock for $4,453,000 in net proceeds under our Equity Distribution Agreements. In conjunction with the sale of common stock, we incurred $116,000 of costs associated with this agreement which have been recorded in additional paid in capital as a reduction of proceeds received. At March 31, 2024, we had $71,509,000 available under the Equity Distribution Agreements. Subsequent to March 31, 2024, we sold 204,700 shares of common stock for $6,522,000 in net proceeds under our Equity Distribution Agreements. Accordingly, we have $64,905,000 available under our Equity Distribution Agreements after the sale of these additional shares. During the three months ended March 31, 2024 and 2023, we acquired 49,540 shares and 41,350 shares, respectively, of common stock held by employees who tendered owned shares to satisfy tax withholding obligations. Available Shelf Registration. Distributions. (in thousands) Three Months Ended March 31, 2024 2023 Declared Paid Declared Paid Common Stock (1) $ 24,616 $ 24,616 $ 23,563 $ 23,563 (1) Represents $0.19 per share per month for the three months ended March 31, 2024 and 2023. In April 2024, we declared a monthly cash dividend Stock-Based Compensation committee at its discretion. Beginning in the first quarter of 2024, we entered into Performance Stock Unit Award Agreements, based upon absolute and relative total shareholder return, under the 2021 Plan. Forms of such Performance Stock Unit Award Agreements are filed as exhibits to this quarter report. During the three months ended March 31, 2024 and 2023, no stock options were granted or exercised. exercisable The following table summarizes our restricted stock activity for the three months ended March 31, 2024 and 2023 : Three Months Ended March 31, 2024 2023 Outstanding, January 1 258,620 229,236 Granted 159,536 127,960 Vested (114,782) (98,206) Cancelled — (1,085) Outstanding, March 31 303,374 257,905 No performance-based stock units vested during the three months ended March 31, 2024, and 2023. During the three months ended March 31, 2024 and 2023, we granted restricted stock and performance-based stock units under the 2021 Plan as follows: No. of Price per Year Shares/Units Share Reward Type Vesting Period 2024 159,536 $ 30.72 Restricted stock ratably over 3 years 69,610 $ 31.84 Performance-based stock units TSR targets (1) 62,914 $ 31.84 Performance-based stock units TSR targets (2) 292,060 2023 127,960 $ 37.16 Restricted stock ratably over 3 years 86,867 $ 37.16 Performance-based stock units TSR targets (3) 214,827 (1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in 3 years . (2) Vesting is based on achieving certain TSR targets relative to the TSR of a predefined peer group in 3 years . (3) 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 three months ended March 31, 2024 and 2023 were $2,202,000 and $2,088,000 , respectively. At March 31, 2024, 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 April - December 2024 $ 6,484 2025 6,266 2026 3,385 2027 369 Total $ 16,504 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies At March 31, 2024, we had commitments as follows (in thousands): Total Investment 2024 Commitment Remaining Commitment Funding Funded Commitment Real estate properties ote 2. Real Estate Investments $ 22,442 (1) $ 1,026 $ 5,184 $ 17,258 Accrued incentives and earn-out liabilities (Note 5. Lease Incentives) 16,125 (2) 189 1,647 14,478 Mortgage loans (N ote 2. Real Estate Investments 43,598 (3) 3,128 10,306 33,292 Notes receivable (N ote 4. Notes Receivable 1,190 (4) — — 1,190 Total $ 83,355 $ 4,343 $ 17,137 $ 66,218 (1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and skilled nursing properties. (2) Includes an earn-out payment of up to $3,000 to an operator under a master lease on four SNFs in Texas which were acquired during 2022. The master lease allows either an earn-out payment up to $3,000 or a purchase option. The earn-out payment is available, contingent on achieving certain thresholds per the lease, beginning at the end of the second lease year through the end of the fifth lease year. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the purchase option see Note 2. Real Estate Investments . (3) Represents $19,500 related to a construction loan, $6,098 of commitments for the expansion, renovation and working capital related to seniors housing and skilled nursing properties securing the mortgage loans and $18,000 of commitments which are contingent upon the borrower achieving certain coverage ratios. (4) Represents working capital loan commitments. Additionally, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Major Operators | |
Major Operators | 9. Major Operators We have one operator that represents 10% or more of our combined rental revenue and interest income from mortgage loans. The following table sets forth information regarding our major operator as of March 31, 2024: Number of Number of Percentage of SNF ALF Total Total Operator SNF ALF Beds Units Revenues Assets (1) Prestige Healthcare (2) 24 — 2,820 93 16.0 % 14.6 % (1) Represents the net carrying value of the mortgage loans and properties we own divided by the Total assets on the Consolidated Balance Sheets. (2) The majority of the revenue derived from this operator relates to interest income from mortgage loans. Our financial position and ability to make distributions may be adversely affected if Prestige Healthcare 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, continuing 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Net income $ 24,689 $ 33,561 Less income allocated to non-controlling interests (459) (427) Less income allocated to participating securities: Non-forfeitable dividends on participating securities (165) (147) Income allocated to participating securities — (58) Total net income allocated to participating securities (165) (205) Net income available to common stockholders 24,065 32,929 Effect of dilutive securities: Participating securities (1) — — Net income for diluted net income per share $ 24,065 $ 32,929 Shares for basic net income per share 42,891 41,082 Effect of dilutive securities: Stock options (1) — — Performance-based stock units 141 107 Participating securities (1) — — Total effect of dilutive securities 141 107 Shares for diluted net income per share 43,032 41,189 Basic net income per share $ 0.56 $ 0.80 Diluted net income per share $ 0.56 $ 0.80 (1) For the three months ended March 31, 2024 and 2023, the participating securities and stock options were excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 their 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 estimated fair value of our financial instruments as of March 31, 2024 and December 31, 2023 were as follows ( in thousands At March 31, 2024 At December 31, 2023 Carrying Fair Carrying Fair Value Value Value Value Financing receivables, net of credit loss reserve $ 196,010 $ 199,381 (1) $ 196,032 $ 199,199 (1) Mortgage loans receivable, net of credit loss reserve 480,250 564,493 (2) 477,266 554,993 (2) Notes receivable, net of credit loss reserve 59,946 67,278 (3) 60,490 67,877 (3) Revolving line of credit 277,050 277,050 (4) 302,250 302,250 (4) Term loans, net of debt issue costs 99,695 100,000 (4) 99,658 100,000 (4) Senior unsecured notes, net of debt issue costs 483,466 435,801 (5) 489,409 439,865 (5) (1) Our investment in financing receivables 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 used to value our future cash inflows of the financing receivables at March 31, 2024 and December 31, 2023 was 7.6% . (2) 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 March 31, 2024 and December 31, 2023 was 9.2% . (3) Our investments in notes receivable are classified as Level 3. 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 flows of the notes receivable at March 31, 2024 and December 31, 2023 was 6.9% . (4) Our revolving line of credit and term loans bear interest at a variable interest rate. The estimated fair value of our revolving line of credit and term loans approximated their carrying values at March 31, 2024 and December 31, 2023 upon prevailing market interest rates for similar debt arrangements. (5) 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 March 31, 2024, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.5% for those maturing before year 2030 and 6.75% for those maturing at or beyond year 2030. At December 31, 2023, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.5% for those maturing before year 2030 and 6.75% for those maturing at or beyond year 2030. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events Subsequent to March 31, 2024, the following events occurred: Real Estate. We sold two closed properties located in Texas for $500,000 and received proceeds of approximately $400,000 , net of transaction costs. At March 31, 2024, these properties were classified as held-for-sale. See Note 2. Real Estate Investments — Properties Held-for-Sale for more information. Unconsolidated Joint Venture. We originated a property. In accordance with GAAP, this mortgage loan was determined to be an acquisition, development and construction (“ADC”) loan and will be accounted for as an unconsolidated joint venture. The campus was built in 2017 and includes 78 units (48 skilled nursing and 30 assisted living) and 104 licensed beds (70 skilled nursing and 34 assisted living). The five-year loan is interest-only at a current rate of 9.15%. Equity: cash dividend |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 are not necessarily indicative of the results for a full year. |
Income taxes | 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 recognizing credit loss expense. As of March 31, 2024, the total balance of accrued interest receivable of $55,842,000 was not included in the measurement of expected credit loss. For the three months ended March 31, 2024 and 2023, we did not recognize any write-off related to accrued interest receivable. 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. |
General (Tables)
General (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
General | |
Summary of expected credit losses related to our financial instruments | The expected credit losses related to our financial instruments that are within the scope of ASC 326 are as follows ( in thousands Balance Balance at Increase at Description 12/31/2023 /(Decrease) 3/31/2024 Credit Loss Reserve- Financing Receivables $ 1,980 $ — $ 1,980 Credit Loss Reserve- Mortgage Loans Receivable $ 4,814 $ 31 $ 4,845 Credit Loss Reserve-Notes Receivable $ 611 $ (6) $ 605 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate Investments | |
Summary of investments in owned properties | The following table summarizes our investments in owned properties at March 31, 2024 (dollar amounts in thousands) Average Percentage Number Number of Investment Gross of of SNF ALF per Type of Property Investment Investment Properties (1) Beds (2) Units (2) Bed/Unit Assisted Living $ 733,901 54.6 % 76 — 4,421 $ 166.00 Skilled Nursing 597,015 44.5 % 50 6,113 236 $ 94.03 Other (3) 12,005 0.9 % 1 118 — — Total $ 1,342,921 100.0 % 127 6,231 4,657 (1) We own properties in 23 states that are leased to 23 different operators. (2) Includes three parcels of land held-for-use, and one behavioral health care hospital. |
Schedule of assisted living portfolio property | Type Number Number First Lease of of of Year Lease Commencement State Property Properties Units Rent Term November 2023 OK ALF 5 (1) 184 $ 960 Three years January 2024 CO, KS, OH, TX ALF 17 (2) 738 9,325 Six years January 2024 NC ALF 5 (3) 210 3,300 Six years 27 1,132 $ 13,585 Type Number Number of of of Sales Net Year sold State Property Properties Units Price Proceeds (4) 2023 FL ALF 4 176 $ 18,750 $ 14,310 (5) 2023 OK ALF 1 37 800 769 2023 SC ALF 3 128 8,409 8,153 ALF 8 341 $ 27,959 $ 23,232 Total 35 1,473 (1) These communities were transitioned to an existing LTC operator. The new master lease includes a purchase option that can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option. Rent increases to $984 in the second year, and $1,150 in the third year. (2) These communities were re-leased to Brookdale under a new master lease. Rent escalates by approximately 2.0% annually. The new master lease includes a purchase option that can be exercised in 2029. We also agreed to fund $7,200 for capital expenditures for the first two years of the lease at an initial rate of 8.0% escalating by approximately 2.0% annually thereafter. (3) These communities were transitioned to an operator new to us. Rent escalates by approximately 3.0% annually. (4) Net of transaction costs and seller financing, if any. (5) We provided seller financing collateralized by two of the Florida properties, with a total of 92 units. The $4,000 seller-financed mortgage loan has a two-year term, with a one-year extension, at an interest rate of 8.75% . |
Summary of components of our rental income | The following table summarizes components of our rental income for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, Rental Income 2024 2023 Contractual cash rental income $ 30,951 (1) $ 29,125 (1) Variable cash rental income 3,381 (2) 3,284 (2) Straight-line rent (550) (465) Amortization of lease incentives (233) (209) Total $ 33,549 $ 31,735 (1) Increased primarily due to $2,377 repayment of rent credit in connection with the sale of our interest in a consolidated joint venture (“JV), rental income from 2023 acquisitions and annual rent escalations, partially offset by property sales and transitioned portfolios. (2) The variable rental income for the three months ended March 31, 2024, and 2023 includes reimbursement of real estate taxes by our lessees. |
Summary of information about purchase options included in our lease agreements | The following table summarizes information about purchase options included in our lease agreements (dollar amounts in thousands): Type Number of of Gross Net Book Option State Property Properties Investments (1) Value Window California ALF/MC 2 $ 38,895 $ 32,542 2023-2029 Colorado/Kansas/Ohio/Texas ALF/MC 17 58,723 26,089 2029 (2) Florida SNF 3 76,669 76,669 2025-2027 Georgia/South Carolina ALF/MC 2 31,433 24,682 2027 North Carolina ALF/MC 11 121,321 121,321 2025-2028 (3) North Carolina ALF 5 14,404 6,844 2029 (4) Ohio MC 1 16,161 13,378 2024-2025 Ohio ILF/ALF/MC 1 54,758 52,946 2025-2027 Oklahoma ALF/MC 5 11,221 4,332 2027-2029 (5) Tennessee SNF 2 5,275 2,227 2023-2024 Texas SNF 4 52,726 50,036 2027-2029 (6) Total $ 481,586 $ 411,066 (1) Gross investments include previously recorded impairment losses, if any. (2) During 2023, we released 17 ALFs with a total of 738 units to Brookdale under a new six-year master lease. The new master lease commenced in January 2024 and includes a purchase option that can be exercised in 2029. See above for more information. (3) During 2023, we entered into a JV that purchased 11 ALFs and MCs with a total of 523 units and leased the communities under a 10-year master lease. The master lease provides the operator with the option to buy up to 50% of the properties at the beginning of the third lease year, and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit IRR of 9.0% on any portion of the properties being purchased. For more information regarding this transaction see Financing Receivables below. (4) During 2023, we transferred five ALFs with a total of 210 units from Brookdale to an operator new to us. The new master lease commenced in January 2024 and includes a purchase option that can be exercised in 2029. See above for more information. (5) During 2023, we transferred five ALFs in Oklahoma with a total of 184 units from Brookdale to an existing operator. The new master lease commenced in November 2023 and includes a purchase option that can be exercised starting in November 2027 through October 2029 if the lessee exercises its four-year extension option. See above for more information. (6) During 2022, we purchased four skilled nursing centers and leased these properties under a 10-year lease with an existing operator. The lease allows the operator to elect either an earn-out payment or purchase option. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the earn-out see Note 8. Commitments and Contingencies . |
Schedule of properties held-for-sale | The following summarizes our held-for-sale properties as of March 31, 2024 and December 31, 2023 ( dollar amounts in thousands Type Number Number of of of Gross Accumulated State Property Properties Beds/units Investment Depreciation At March 31, 2024 TX ALF (1) 2 n/a (1) $ 3,162 $ 2,773 At December 31, 2023 WI ALF (2) 1 110 $ 22,007 $ 3,616 (1) These closed properties were sold subsequent to March 31, 2024. (2) This community was sold during the three months ended March 31, 2024. |
Summary of the carrying amount of intangible assets | The following is a summary of the carrying amount of intangible assets as of March 31, 2024 and December 31, 2023 (in thousands) March 31, 2024 December 31, 2023 Accumulated Accumulated Assets Cost Amortization Net Cost Amortization Net In-place leases $ 11,155 (1) $ (6,218) (2) $ 4,937 $ 11,348 (1) $ (6,109) (2) $ 5,239 Tax abatement intangible $ 8,309 (3) $ (578) (3) $ 7,731 $ 8,309 (3) $ (405) (3) $ 7,904 (1) Included in the Buildings and improvements line item in our Consolidated Balance Sheets . (2) Included in the Accumulated depreciation and amortization line item in our Consolidated Balance Sheets. (3) Included in the Prepaid expenses and other assets line item in our Consolidated Balance Sheets. |
Schedule of developments and improvement projects | During he following capital improvement projects (in thousands) : Three Months Ended March 31, Type of Property 2024 2023 Assisted Living Communities $ 1,133 $ 1,548 Skilled Nursing Centers 196 973 Other — 87 Total $ 1,329 $ 2,608 |
Schedule of property sold | The following table summarizes property sales during the three months ended March 31, 2024 and 2023 (dollar amounts in thousands): Type Number Number of of of Sales Carrying Net Year State Properties Properties Beds/Units Price Value (Loss) Gain (1) 2024 Florida ALF 1 60 $ 4,500 $ 4,579 $ (319) Texas ALF 5 208 1,600 1,282 (356) Wisconsin ALF 1 110 20,193 (2) 16,195 3,986 n/a n/a — — — — (60) (3) Total 7 378 $ 26,293 $ 22,056 $ 3,251 2023 Kentucky ALF 1 60 $ 11,000 $ 10,710 $ 72 New Mexico SNF 2 235 21,250 5,379 15,301 Total 3 295 $ 32,250 $ 16,089 $ 15,373 ( (1) Calculation of net gain includes cost of sales and write-off of straight-line receivable and lease incentives, when applicable. (2) Represents the price to sell our portion of interest in a JV, net of the JV partner’s $2,305 contributions in the joint venture. (3) We recognized additional loss due to additional incurred costs related to properties sold during 2023 . |
Schedule of investments in financing receivables | The following tables provide information regarding our investments in financing receivables ( dollar amounts in thousands Type Number Number Investment of of of Gross LTC Year State Properties Properties Beds/Units Investments Contributions 2023 NC ALF/MC 11 523 $ 121,321 $ 117,490 2022 FL SNF 3 299 76,669 62,344 14 822 $ 197,990 $ 179,834 Type Initial Interest Income from Financing Receivables Lease of Contractual Three Months Ended March 31, Maturity Properties Cash Yield 2024 2023 2033 (1) ALF/MC 7.25 % $ 2,426 $ 2,345 2032 (2) SNF 7.25 % 1,404 1,406 $ 3,830 $ 3,751 (1) The JV leased these communities back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options. The contractual initial cash yield of 7.25% increases to 7.5% in year three then escalates thereafter based on CPI subject to a floor of 2.0% and a ceiling of 4.0% . The JV provided the seller-lessee with a purchase option to buy up to 50% of the properties at the beginning of the third lease year and the remaining properties at the beginning of the fourth lease year through the end of the sixth lease year, with an exit Internal Rate of Return (“IRR”) of 9.0% . (2) The JV leased the centers back to an affiliate of the seller under a 10-year master lease, with two five-year renewal options and provided the seller-lessee with a purchase option, exercisable at the beginning of the fourth year through the end of the fifth year. |
Summary of investments in mortgage loans secured by first mortgages | Type Percentage Number of Investment Gross of of SNF ALF per Interest Rate Maturity State Investment Property Investment Loans (1) Properties (2) Beds Units Bed/Unit 7.5% 2024 MO $ 2,013 OTH 0.4 % 1 — (3) — — $ n/a 7.5% 2024 LA 29,346 SNF 6.0 % 1 1 189 — $ 155.27 7.5% 2024 GA 51,111 ALF 10.5 % 1 1 — 203 $ 251.78 8.8% 2025 FL 4,000 ALF 0.8 % 1 2 — 92 $ 43.48 7.8% 2025 FL 16,706 ALF 3.5 % 1 1 — 112 $ 149.16 7.3% 2025 NC 10,750 ALF 2.2 % 1 1 — 45 $ 238.89 7.3% (4) 2025 NC/SC 58,519 ALF 12.1 % 1 13 — 523 $ 111.89 7.3% (4) 2026 NC 34,043 ALF 7.0 % 1 4 — 217 $ 156.88 7.3% (4) 2026 NC 826 OTH 0.2 % 1 — (5) — — $ n/a 8.8% (6) 2026 MI 2,940 UDP 0.6 % 1 — (6) — — $ n/a 8.8% 2028 IL 16,500 SNF 3.4 % 1 1 150 — $ 110.00 10.8% (7) 2043 MI 183,966 SNF 37.9 % 1 15 1,875 — $ 98.12 9.8% (7) 2045 MI 39,850 SNF 8.2 % 1 4 480 — $ 83.02 10.1% (7) 2045 MI 19,700 SNF 4.1 % 1 2 201 — $ 98.01 10.5% (7) 2045 MI 14,825 SNF 3.1 % 1 1 146 — $ 101.54 Total $ 485,095 100.0 % 15 46 3,041 1,192 $ 114.60 (1) Some loans contain certain guarantees and provide for certain facility fees. (2) Our mortgage loans are secured by properties located in eight states with nine borrowers. (3) Represents a mortgage loan secured by a parcel of land for the future development of a 91 -bed post-acute SNF. (4) Represents the initial rate with an IRR of 8% . (5) Represents a mortgage loan secured by a parcel of land in North Carolina held for future development of a seniors housing community. (6) During the third quarter of 2023, we committed to fund a $19,500 mortgage loan for the construction of an 85 -unit ALF and MC in Michigan. The borrower contributed $12,100 of equity, which initially funded the construction. In 2024, once all of the borrower’s equity was drawn, we began funding the commitment. Our remaining commitment is $16,600 . The interest-only loan term is approximately three years at a rate of 8.75% , and includes two , one-year extensions, each of which is contingent on certain coverage thresholds. (7) Mortgage loans provide for 2.25% annual increases in the interest rate. |
Schedule of mortgage loan activity | The following table summarizes our mortgage loan activity for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Originations and funding under mortgage loans receivable $ 3,128 (1) $ 62,844 (2) Application of interest reserve 14 1,149 Scheduled principal payments received (125) (125) Mortgage loan premium amortization (2) (2) Provision for loan loss reserve (31) (639) Net increase in mortgage loans receivable $ 2,984 $ 63,227 (1) We funded the following: (a) $2,940 under a $19,500 mortgage loan commitment for the construction of an 85 -unit ALF and MC in Michigan. The borrower contributed $12,100 of equity upon origination in July 2023, which was used to initially fund the construction. Our remaining commitment is $16,600 . The interest-only loan term is approximately three years at a rate of 8.75% , and includes two , one-year extensions, each of which is contingent on certain coverage thresholds; and (b) $188 of additional funding under other mortgage loan receivables. (2) We originated and funded the following: (a) $10,750 mortgage loan secured by a 45 -unit MC located in North Carolina. The loan carries a two-year term with an interest-only rate of 7.25% and an IRR of 9.0% ; (b) $51,111 mortgage loan investment secured by a 203 -unit ILF, ALF and MC located in Georgia. We acquired a participating interest owned by existing lenders for $42,251 in addition to converting our $7,461 mezzanine loan in the property into a participating interest in the mortgage loan. The mortgage loan matures in October 2024 and our investment is at an initial rate of 7.5% with an IRR of 7.75% . We recorded $1,380 of additional interest income in connection with the effective prepayment of the mezzanine loan in the first quarter of 2023; and (c) $983 of additional funding under other mortgage loans receivable. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investment in Unconsolidated Joint Ventures | |
Summary of the preferred equity investments | The following table provides information regarding these preferred equity investments (dollar amounts in thousands): Type Type Total Contractual Number of of Preferred Cash of Carrying State Properties Investment Return Portion Beds/ Units Value Washington ALF/MC Preferred Equity (1) 12 % 7 % 95 $ 6,340 (1) Washington ILF/ALF Preferred Equity (2) 14 % 8 % 267 13,000 (2) Total (3) 362 $ 19,340 (1) Our investment represents 15.5% of the 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% , depending upon timing of redemption. We have the option to require the JV partner to purchase our preferred equity interest at any time between August 17, 2031 and December 31, 2036. (2) Our investment represents 11.6% of the estimated total investment. The preferred equity investment earns an initial cash rate of 8% with an IRR of 14% . The JV partner has the option to buy out our investment at any time after August 31, 2023 at the IRR rate. Also, we have the option to require the JV partner to purchase our preferred equity interest at any time between August 31, 2027 and, upon project completion and leasing the property, prior to the end of the first renewal term of the lease. (3) Subsequent to March 31, 2024, we originated a $12,700 mortgage loan to a current operator in order to acquire a skilled nursing and assisted living campus in Texas. The mortgage loan is secured by this property. In accordance with GAAP, this mortgage loan was determined to be an acquisition, development and construction (“ADC”) loan and will be accounted for as an unconsolidated JV. The campus was built in 2017 and includes 78 units (48 skilled nursing and 30 assisted living) and 104 licensed beds (70 skilled nursing and 34 assisted living). The five-year mortgage loan is interest only at a current rate of 9.15% . |
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 during the three months ended March 31, 2024 and 2023 (in thousands): Type of Capital Income Cash Income Non-cash Year Properties Contribution Recognized Earned Income Accrued 2024 ALF/MC $ — $ 112 $ 112 $ — ILF/ALF (1) — 264 — 264 Total $ — $ 376 $ 112 $ 264 2023 ALF/MC $ — $ 112 $ — $ 112 UDP (1) — 264 — 264 Total $ — $ 376 $ — $ 376 (1) The JV developed and owns a 267 -unit ILF and ALF in Washington. The development project was completed during the fourth quarter of 2023. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Receivable. | |
Summary of investments in notes receivable | Interest Type of Gross Type of Rate IRR Maturity Loan Investment # of loans Property 4.0% — 2024 Working capital $ 13,531 1 SNF 5.0% — 2025 Working capital 732 1 ALF 8.0% 11.0 % 2027 Mezzanine 25,000 1 ALF 8.8% 12.0 % 2028 Mezzanine 17,000 1 ALF 6.5% — 2030 Working capital 138 1 SNF 7.3% — 2030 Working capital 500 1 ALF 7.4% — 2030 Working capital 957 1 ALF 0.0% — 2031 Working capital 2,693 1 ALF $ 60,551 (1) 8 (1) Excludes the impact of credit loss reserve. |
Summary of mezzanine loans and other loan arrangements | The following table is a summary of our notes receivable components as of March 31, 2024 and December 31, 2023 (in thousands): At March 31, 2024 At December 31, 2023 Mezzanine loans $ 42,000 $ 42,000 Working capital loans 18,551 19,101 Notes receivable credit loss reserve (605) (611) Total $ 59,946 $ 60,490 |
Summary of notes receivable activity | The following table summarizes our notes receivable activity for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 2023 Advances under notes receivable $ — $ 605 Principal payments received under notes receivable (550) (12,641) (1) Recovery of credit losses 6 120 Net decrease in notes receivable $ (544) $ (11,916) (1) During 2023, we received $4,545 , which includes a prepayment fee and the exit IRR totaling $190 from a mezzanine loan prepayment. The mezzanine loan was on a 136 -unit ILF in Oregon. Additionally, another $7,461 mezzanine loan was effectively prepaid through converting it as part of our $51,111 investment in a participating interest in an existing mortgage loan that is secured by a 203 -unit ALF, ILF and MC located in Georgia. We recorded $1,380 of interest income in connection with the effective prepayment of the mezzanine loan. |
Lease Incentives (Tables)
Lease Incentives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Lease Incentives | |
Summary of non-contingent lease incentive activity | Three Months Ended March 31, 2024 2023 Lease incentives funded $ 1,395 (1) $ — Amortization of lease incentives (233) (209) Other adjustments (191) (2) (9) (2) Net increase (decrease) in non-contingent lease incentives $ 971 $ (218) (1) Included in the balance is $1,107 related to transitioning the Brookdale portfolio. (2) Primarily relates to lease incentive balance write-off related to property sales. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Obligations | |
Schedule of interest rate swaps | Information regarding our interest rate swaps measured at fair value, which are classified as Level 2 of the fair value hierarchy is presented below ( dollar amounts in thousands Notional Fair Value at Date Entered Maturity Date Swap Rate Rate Index Amount March 31, 2024 December 31, 2023 November 2021 November 19, 2025 2.62 % 1-month SOFR $ 50,000 $ 2,750 $ 2,698 November 2021 November 19, 2026 2.76 % 1-month SOFR 50,000 3,738 3,412 $ 100,000 $ 6,488 $ 6,110 |
Schedule of Debt Obligations | The following table sets forth information regarding debt obligations by component as of March 31, 2024 and December 31, 2023 ( dollar amounts in thousands): At March 31, 2024 At December 31, 2023 Applicable Available Available Interest Outstanding for Outstanding for Debt Obligations Rate (1) Balance Borrowing Balance Borrowing Revolving line of credit 6.52% $ 277,050 $ 122,950 $ 302,250 $ 97,750 Term loans, net of debt issue costs 2.69% 99,695 — 99,658 — Senior unsecured notes, net of debt issue costs 4.20% 483,466 — 489,409 — Total 4.77% $ 860,211 $ 122,950 $ 891,317 $ 97,750 (1) Represents weighted average of interest rate as of March 31, 2024. |
Schedule of borrowings and repayments | During the three months ended March 31, 2024 and 2023, our debt borrowings and repayments were as follows ( in thousands Three Months Ended March 31, 2024 2023 Debt Obligations Borrowings Repayments Borrowings Repayments Revolving line of credit $ 10,300 $ (35,500) $ 162,700 $ (22,600) Senior unsecured notes — (6,000) — (7,000) Total $ 10,300 $ (41,500) $ 162,700 $ (29,600) |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity | |
Schedule of consolidated VIEs | As of March 31, 2024, we have the following consolidated VIEs (in thousands): Gross Investment Property Consolidated Non-Controlling Year Purpose Type State Assets (1) Interests 2023 Owned real estate ILF/ALF/MC OH $ 54,758 $ 9,134 2023 Owned real estate ALF/MC NC 121,321 3,831 2022 Owned real estate SNF FL 76,669 14,325 2018 Owned real estate ILF OR 14,650 2,907 2018 Owned real estate and development ALF/MC OR 18,452 1,156 2017 Owned real estate ALF/MC SC 11,680 1,240 Total $ 297,530 $ 32,593 (1) Includes the total real estate investments and excludes intangible assets. |
Schedule of cash dividends declared and paid | Distributions. (in thousands) Three Months Ended March 31, 2024 2023 Declared Paid Declared Paid Common Stock (1) $ 24,616 $ 24,616 $ 23,563 $ 23,563 (1) Represents $0.19 per share per month for the three months ended March 31, 2024 and 2023. |
Schedule of restricted stock activity | The following table summarizes our restricted stock activity for the three months ended March 31, 2024 and 2023 : Three Months Ended March 31, 2024 2023 Outstanding, January 1 258,620 229,236 Granted 159,536 127,960 Vested (114,782) (98,206) Cancelled — (1,085) Outstanding, March 31 303,374 257,905 |
Schedule of restricted stock granted | No. of Price per Year Shares/Units Share Reward Type Vesting Period 2024 159,536 $ 30.72 Restricted stock ratably over 3 years 69,610 $ 31.84 Performance-based stock units TSR targets (1) 62,914 $ 31.84 Performance-based stock units TSR targets (2) 292,060 2023 127,960 $ 37.16 Restricted stock ratably over 3 years 86,867 $ 37.16 Performance-based stock units TSR targets (3) 214,827 (1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in 3 years . (2) Vesting is based on achieving certain TSR targets relative to the TSR of a predefined peer group in 3 years . (3) 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 | At March 31, 2024, 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 April - December 2024 $ 6,484 2025 6,266 2026 3,385 2027 369 Total $ 16,504 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Schedule of commitments | At March 31, 2024, we had commitments as follows (in thousands): Total Investment 2024 Commitment Remaining Commitment Funding Funded Commitment Real estate properties ote 2. Real Estate Investments $ 22,442 (1) $ 1,026 $ 5,184 $ 17,258 Accrued incentives and earn-out liabilities (Note 5. Lease Incentives) 16,125 (2) 189 1,647 14,478 Mortgage loans (N ote 2. Real Estate Investments 43,598 (3) 3,128 10,306 33,292 Notes receivable (N ote 4. Notes Receivable 1,190 (4) — — 1,190 Total $ 83,355 $ 4,343 $ 17,137 $ 66,218 (1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and skilled nursing properties. (2) Includes an earn-out payment of up to $3,000 to an operator under a master lease on four SNFs in Texas which were acquired during 2022. The master lease allows either an earn-out payment up to $3,000 or a purchase option. The earn-out payment is available, contingent on achieving certain thresholds per the lease, beginning at the end of the second lease year through the end of the fifth lease year. If neither option is elected within the timeframe defined in the lease, both elections are terminated. For more information regarding the purchase option see Note 2. Real Estate Investments . (3) Represents $19,500 related to a construction loan, $6,098 of commitments for the expansion, renovation and working capital related to seniors housing and skilled nursing properties securing the mortgage loans and $18,000 of commitments which are contingent upon the borrower achieving certain coverage ratios. (4) Represents working capital loan commitments. |
Major Operators (Tables)
Major Operators (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Revenues Assets (1) Prestige Healthcare (2) 24 — 2,820 93 16.0 % 14.6 % (1) Represents the net carrying value of the mortgage loans and properties we own divided by the Total assets on the Consolidated Balance Sheets. (2) The majority of the revenue derived from this operator relates to interest income from mortgage loans. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Net income $ 24,689 $ 33,561 Less income allocated to non-controlling interests (459) (427) Less income allocated to participating securities: Non-forfeitable dividends on participating securities (165) (147) Income allocated to participating securities — (58) Total net income allocated to participating securities (165) (205) Net income available to common stockholders 24,065 32,929 Effect of dilutive securities: Participating securities (1) — — Net income for diluted net income per share $ 24,065 $ 32,929 Shares for basic net income per share 42,891 41,082 Effect of dilutive securities: Stock options (1) — — Performance-based stock units 141 107 Participating securities (1) — — Total effect of dilutive securities 141 107 Shares for diluted net income per share 43,032 41,189 Basic net income per share $ 0.56 $ 0.80 Diluted net income per share $ 0.56 $ 0.80 (1) For the three months ended March 31, 2024 and 2023, the participating securities and stock options were 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) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Schedule of carrying value and fair value of the entity's financial instruments | The carrying value and estimated fair value of our financial instruments as of March 31, 2024 and December 31, 2023 were as follows ( in thousands At March 31, 2024 At December 31, 2023 Carrying Fair Carrying Fair Value Value Value Value Financing receivables, net of credit loss reserve $ 196,010 $ 199,381 (1) $ 196,032 $ 199,199 (1) Mortgage loans receivable, net of credit loss reserve 480,250 564,493 (2) 477,266 554,993 (2) Notes receivable, net of credit loss reserve 59,946 67,278 (3) 60,490 67,877 (3) Revolving line of credit 277,050 277,050 (4) 302,250 302,250 (4) Term loans, net of debt issue costs 99,695 100,000 (4) 99,658 100,000 (4) Senior unsecured notes, net of debt issue costs 483,466 435,801 (5) 489,409 439,865 (5) (1) Our investment in financing receivables 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 used to value our future cash inflows of the financing receivables at March 31, 2024 and December 31, 2023 was 7.6% . (2) 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 March 31, 2024 and December 31, 2023 was 9.2% . (3) Our investments in notes receivable are classified as Level 3. 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 flows of the notes receivable at March 31, 2024 and December 31, 2023 was 6.9% . (4) Our revolving line of credit and term loans bear interest at a variable interest rate. The estimated fair value of our revolving line of credit and term loans approximated their carrying values at March 31, 2024 and December 31, 2023 upon prevailing market interest rates for similar debt arrangements. (5) 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 March 31, 2024, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.5% for those maturing before year 2030 and 6.75% for those maturing at or beyond year 2030. At December 31, 2023, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.5% for those maturing before year 2030 and 6.75% for those maturing at or beyond year 2030. |
General (Details)
General (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
General | |
Number of operating segments | 1 |
General - Expected Credit Losse
General - Expected Credit Losses Related to Financial Instruments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
General | |
Financing Receivables, Beginning balance | $ 1,980 |
Mortgage Loans Receivable, Beginning balance | 4,814 |
Notes Receivable, Beginning balance | 611 |
Mortgage Loans Receivable, Increase/(Decrease) | 31 |
Notes Receivable, Increase/(Decrease) | (6) |
Financing Receivables, Ending balance | 1,980 |
Mortgage Loans Receivable, Ending balance | 4,845 |
Notes Receivable, Ending balance | $ 605 |
Real Estate Investments - Owned
Real Estate Investments - Owned Properties (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) item property state $ / item | |
Real Estate [Line Items] | |
Gross Investment | $ | $ 1,342,921 |
Percentage of Investment | 100% |
Number of properties | property | 127 |
Number of states | state | 23 |
Number of operators | 23 |
SNF Beds | |
Real Estate [Line Items] | |
Number of beds/units | 6,231 |
ALF Units | |
Real Estate [Line Items] | |
Number of beds/units | 4,657 |
ALF | |
Real Estate [Line Items] | |
Gross Investment | $ | $ 733,901 |
Percentage of Investment | 54.60% |
Number of properties | property | 76 |
Average Investment per Bed/Unit | $ / item | 166 |
ALF | ALF Units | |
Real Estate [Line Items] | |
Number of beds/units | 4,421 |
SNF | |
Real Estate [Line Items] | |
Gross Investment | $ | $ 597,015 |
Percentage of Investment | 44.50% |
Number of properties | property | 50 |
Average Investment per Bed/Unit | $ / item | 94.03 |
SNF | SNF Beds | |
Real Estate [Line Items] | |
Number of beds/units | 6,113 |
SNF | ALF Units | |
Real Estate [Line Items] | |
Number of beds/units | 236 |
Other | |
Real Estate [Line Items] | |
Gross Investment | $ | $ 12,005 |
Percentage of Investment | 0.90% |
Number of properties | property | 1 |
Number of parcels of land | 3 |
Other | SNF Beds | |
Real Estate [Line Items] | |
Number of beds/units | 118 |
Hospital | |
Real Estate [Line Items] | |
Number of properties | property | 1 |
Real Estate Investment - Detail
Real Estate Investment - Details (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 01, 2024 USD ($) item Center | Jan. 31, 2024 USD ($) | Nov. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) property lease Center item | Sep. 30, 2023 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) property item | |
Real Estate [Line Items] | ||||||||
Number of properties | property | 127 | |||||||
Gross Investment | $ 1,342,921,000 | |||||||
Lease renewal term | 4 years | |||||||
Write-off of straight-line rent and lease incentives balances | $ 191,000 | $ 144,000 | ||||||
SNF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 50 | |||||||
Lease term | 10 years | |||||||
Gross Investment | $ 597,015,000 | |||||||
Number of operating lease renewals | lease | 2 | |||||||
Lease renewal term | 5 years | |||||||
ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 76 | |||||||
Gross Investment | $ 733,901,000 | |||||||
Mortgage Loans | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 46 | |||||||
Gross Investment | $ 485,095,000 | |||||||
Mortgage Loans | SNF | ||||||||
Real Estate [Line Items] | ||||||||
Interest rate (as a percent) | 2.25% | |||||||
Mortgage Loans | Mortgage Loans With 8.75 Interest | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of beds/units | item | 85 | |||||||
Gross Investment | $ 19,500,000 | |||||||
Loan Term | 3 years | |||||||
Interest rate (as a percent) | 8.75% | |||||||
Kansas | ||||||||
Real Estate [Line Items] | ||||||||
Total cost | $ 315,000 | |||||||
Increase in rent (as percent) | 8% | |||||||
Master lease agreement | ||||||||
Real Estate [Line Items] | ||||||||
Specified annual increase over the prior year's rent (as a percent) | 3.30% | |||||||
2024 | $ 9,000,000 | |||||||
2025 | 9,500,000 | |||||||
2026 | $ 10,000,000 | |||||||
Number of operating lease renewals | lease | 2 | |||||||
Lease renewal term | 5 years | |||||||
Repayment on working capital | $ 11,900,000 | |||||||
Master lease agreement | Working capital loans | ||||||||
Real Estate [Line Items] | ||||||||
Gross Investment | $ 13,531,000 | |||||||
Master lease agreement | Texas | SNF | ||||||||
Real Estate [Line Items] | ||||||||
Number of beds/units | item | 1,444 | |||||||
Skilled nursing center purchased | Center | 11 | |||||||
Additional term of lessor's operating lease renewal | 7 months | |||||||
Annual Rent | $ 1,000,000 | |||||||
Contractual annual cash rent | 8,000,000 | |||||||
Lease rent seven months amount | $ 4,667,000 | |||||||
New master lease agreement | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 27 | |||||||
Number of beds/units | item | 666 | 1,132 | ||||||
Rental income to be received in first year | $ 13,585,000 | |||||||
Specified annual increase over the prior year's rent (as a percent) | 2.50% | |||||||
Number of properties sold | property | 35 | |||||||
Number of beds or units in property sold | item | 1,473 | |||||||
Skilled nursing center purchased | Center | 4 | |||||||
Contractual annual cash rent | $ 8,004,000 | |||||||
GAAP rent | $ 7,049,000 | |||||||
New master lease agreement | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties sold | property | 8 | |||||||
Number of beds or units in property sold | item | 341 | |||||||
Amount of real estate property sold | $ 27,959,000 | |||||||
Proceeds from Sale of Real Estate | 23,232,000 | |||||||
New master lease agreement | Mortgage Loans | Mortgage Loans With 8.75 Interest | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Gross Investment | $ 4,000,000 | |||||||
Loan Term | 2 years | |||||||
Loan extension term | 1 year | |||||||
Interest rate (as a percent) | 8.75% | |||||||
New master lease agreement | Texas | ||||||||
Real Estate [Line Items] | ||||||||
Skilled nursing center purchased | Center | 3 | |||||||
New master lease agreement | Oklahoma | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 5 | |||||||
Number of beds/units | item | 184 | |||||||
Lease term | 3 years | |||||||
Rental income to be received in first year | $ 960,000 | |||||||
Rental income to be received in second year | $ 984,000 | |||||||
Rental income to be received in third year | $ 1,150,000 | |||||||
Number of properties sold | property | 1 | |||||||
Number of beds or units in property sold | item | 37 | |||||||
Amount of real estate property sold | $ 800,000 | |||||||
Proceeds from Sale of Real Estate | $ 769,000 | |||||||
New master lease agreement | North Carolina | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 5 | |||||||
Number of beds/units | item | 210 | |||||||
Lease term | 6 years | |||||||
Rental income to be received in first year | $ 3,300,000 | |||||||
Specified annual increase over the prior year's rent (as a percent) | 3% | |||||||
New master lease agreement | Florida | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties sold | property | 4 | |||||||
Number of beds or units in property sold | item | 176 | |||||||
Amount of real estate property sold | $ 18,750,000 | |||||||
Proceeds from Sale of Real Estate | $ 14,310,000 | |||||||
New master lease agreement | Florida | Mortgage Loans | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties provided for collateral to seller financing | property | 2 | |||||||
Number of units included in properties provided for collateral to seller financing | item | 92 | |||||||
New master lease agreement | South Carolina | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties sold | property | 3 | |||||||
Number of beds or units in property sold | item | 128 | |||||||
Amount of real estate property sold | $ 8,409,000 | |||||||
Proceeds from Sale of Real Estate | $ 8,153,000 | |||||||
New master lease agreement | Wisconsin | ||||||||
Real Estate [Line Items] | ||||||||
Skilled nursing center purchased | Center | 1 | |||||||
Brookdale Senior Living | New master lease agreement | ALF | ||||||||
Real Estate [Line Items] | ||||||||
Number of properties | property | 35 | |||||||
Fund for capital expenditures | $ 7,200,000 | |||||||
Tenure for funding capital expenditure | 2 years | |||||||
Initial rate for capital expenditure by lessor (as a percent) | 8% | |||||||
Annual increase in rate for capital expenditure by lessor (as a percent) | 2% |
Real Estate Investments - Assis
Real Estate Investments - Assisted Living Portfolio Property (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) property item | Apr. 01, 2024 item | Mar. 31, 2024 property | |
Real Estate Properties [Line Items] | |||
Number of Properties | property | 127 | ||
New master lease agreement | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 27 | ||
Number of beds/units | item | 1,132 | 666 | |
First Year Rent | $ | $ 13,585 | ||
Number of properties sold | property | 35 | ||
Number of beds or units in property sold | item | 1,473 | ||
ALF | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 76 | ||
ALF | New master lease agreement | |||
Real Estate Properties [Line Items] | |||
Number of properties sold | property | 8 | ||
Number of beds or units in property sold | item | 341 | ||
Sales Price | $ | $ 27,959 | ||
Net Proceeds | $ | $ 23,232 | ||
ALF | New master lease agreement | Oklahoma | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 5 | ||
Number of beds/units | item | 184 | ||
First Year Rent | $ | $ 960 | ||
Lease term | 3 years | ||
Number of properties sold | property | 1 | ||
Number of beds or units in property sold | item | 37 | ||
Sales Price | $ | $ 800 | ||
Net Proceeds | $ | $ 769 | ||
ALF | New master lease agreement | Colorado, Kansas, Ohio and Texas | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 17 | ||
Number of beds/units | item | 738 | ||
First Year Rent | $ | $ 9,325 | ||
Lease term | 6 years | ||
ALF | New master lease agreement | North Carolina | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 5 | ||
Number of beds/units | item | 210 | ||
First Year Rent | $ | $ 3,300 | ||
Lease term | 6 years | ||
ALF | New master lease agreement | Florida | |||
Real Estate Properties [Line Items] | |||
Number of properties sold | property | 4 | ||
Number of beds or units in property sold | item | 176 | ||
Sales Price | $ | $ 18,750 | ||
Net Proceeds | $ | $ 14,310 | ||
ALF | New master lease agreement | South Carolina | |||
Real Estate Properties [Line Items] | |||
Number of properties sold | property | 3 | ||
Number of beds or units in property sold | item | 128 | ||
Sales Price | $ | $ 8,409 | ||
Net Proceeds | $ | $ 8,153 | ||
ALF | New master lease agreement | Brookdale Senior Living | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 35 |
Real Estate Investments - Compo
Real Estate Investments - Components of rental income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income and Expenses, Lessor [Abstract] | |||
Contractual cash rental income | $ 30,951 | $ 29,125 | |
Variable cash rental income | 3,381 | 3,284 | |
Straight-line rent | (550) | (465) | |
Amortization of lease incentives | (233) | (209) | |
Total Rental Income | $ 33,549 | $ 31,735 | |
Repayment of rent credit | $ 2,377 |
Real Estate Investments - Purch
Real Estate Investments - Purchase options (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) property item | Dec. 31, 2022 item | Dec. 31, 2023 USD ($) item property | |
Real estate investments | |||
Number of Properties | property | 127 | ||
Gross Investment | $ 1,342,921 | ||
Net Book Value | 956,366 | $ 987,965 | |
Purchase Option in Lease Arrangements | |||
Real estate investments | |||
Gross Investment | 481,586 | ||
Net Book Value | $ 411,066 | ||
ALF | |||
Real estate investments | |||
Number of Properties | property | 76 | ||
Gross Investment | $ 733,901 | ||
ALF | Purchase Option in Lease Arrangements | Colorado/Kansas/Ohio/Texas | Brookdale Senior Living | |||
Real estate investments | |||
Number of Properties | property | 17 | ||
Number of units | item | 738 | ||
Lease term | 6 years | ||
ALF | Purchase Option in Lease Arrangements | North Carolina | |||
Real estate investments | |||
Number of Properties | property | 5 | 5 | |
Gross Investment | $ 14,404 | ||
Net Book Value | $ 6,844 | ||
Number of units | item | 210 | ||
ALF | Purchase Option in Lease Arrangements | Oklahoma | |||
Real estate investments | |||
Number of ALF transferred to existing operator | property | 5 | ||
Number of units | item | 184 | ||
Lease term, extension period | 4 years | ||
MC | Purchase Option in Lease Arrangements | Ohio | |||
Real estate investments | |||
Number of Properties | property | 1 | ||
Gross Investment | $ 16,161 | ||
Net Book Value | $ 13,378 | ||
ALF & MC | |||
Real estate investments | |||
Lease term | 10 years | ||
Maximum percentage of purchase option to buy properties | 50% | ||
Percentage of cash return | 9% | ||
ALF & MC | Purchase Option in Lease Arrangements | California | |||
Real estate investments | |||
Number of Properties | property | 2 | ||
Gross Investment | $ 38,895 | ||
Net Book Value | $ 32,542 | ||
ALF & MC | Purchase Option in Lease Arrangements | Colorado/Kansas/Ohio/Texas | |||
Real estate investments | |||
Number of Properties | property | 17 | ||
Gross Investment | $ 58,723 | ||
Net Book Value | $ 26,089 | ||
ALF & MC | Purchase Option in Lease Arrangements | Georgia/South Carolina | |||
Real estate investments | |||
Number of Properties | property | 2 | ||
Gross Investment | $ 31,433 | ||
Net Book Value | $ 24,682 | ||
ALF & MC | Purchase Option in Lease Arrangements | North Carolina | |||
Real estate investments | |||
Number of Properties | property | 11 | ||
Gross Investment | $ 121,321 | ||
Net Book Value | $ 121,321 | ||
Number of units | item | 523 | ||
Lease term | 10 years | ||
Number of assisted living and memory care communities | item | 11 | ||
Maximum percentage of purchase option to buy properties | 50% | ||
Percentage of cash return | 9% | ||
ALF & MC | Purchase Option in Lease Arrangements | Oklahoma | |||
Real estate investments | |||
Number of Properties | property | 5 | ||
Gross Investment | $ 11,221 | ||
Net Book Value | $ 4,332 | ||
SNF | |||
Real estate investments | |||
Number of Properties | property | 50 | ||
Gross Investment | $ 597,015 | ||
Lease term | 10 years | ||
SNF | Purchase Option in Lease Arrangements | Florida | |||
Real estate investments | |||
Number of Properties | property | 3 | ||
Gross Investment | $ 76,669 | ||
Net Book Value | $ 76,669 | ||
SNF | Purchase Option in Lease Arrangements | Tennessee | |||
Real estate investments | |||
Number of Properties | property | 2 | ||
Gross Investment | $ 5,275 | ||
Net Book Value | $ 2,227 | ||
SNF | Purchase Option in Lease Arrangements | Texas | |||
Real estate investments | |||
Number of Properties | property | 4 | ||
Gross Investment | $ 52,726 | ||
Net Book Value | $ 50,036 | ||
Number of properties acquired | item | 4 | ||
Lease term | 10 years | ||
ILF/ALF/MC | Purchase Option in Lease Arrangements | Ohio | |||
Real estate investments | |||
Number of Properties | property | 1 | ||
Gross Investment | $ 54,758 | ||
Net Book Value | $ 52,946 |
Real Estate Investments - Prope
Real Estate Investments - Properties Held-For-Sale (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) item property | Dec. 31, 2023 USD ($) property item | |
Real Estate Properties [Line Items] | |||
Impairment loss | $ 434 | ||
Accumulated depreciation | $ 383,782 | $ 387,751 | |
ALF | Florida | |||
Real Estate Properties [Line Items] | |||
Impairment loss | $ 434 | ||
Number of Beds/units | item | 70 | ||
ALF | Properties held-for-sale | Texas | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 2 | ||
Gross Investment | $ 3,162 | ||
Accumulated depreciation | $ 2,773 | ||
ALF | Properties held-for-sale | Wisconsin | |||
Real Estate Properties [Line Items] | |||
Number of Properties | property | 1 | ||
Number of Beds/units | item | 110 | ||
Gross Investment | $ 22,007 | ||
Accumulated depreciation | $ 3,616 |
Real Estate Investments - Carry
Real Estate Investments - Carrying amount of intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
In-place leases | ||
Real estate investments | ||
Cost | $ 11,155 | $ 11,348 |
Accumulated Amortization | (6,218) | (6,109) |
Net | 4,937 | 5,239 |
Tax abatement intangible | ||
Real estate investments | ||
Cost | 8,309 | 8,309 |
Accumulated Amortization | (578) | (405) |
Net | $ 7,731 | $ 7,904 |
Real Estate Investments - Impro
Real Estate Investments - Improvements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Real estate investments | ||
Invested in projects | $ 4,343 | |
Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 1,329 | $ 2,608 |
ALF | Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | 1,133 | 1,548 |
SNF | Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | $ 196 | 973 |
Other | Improvements | Development and Improvement Commitments | ||
Real estate investments | ||
Invested in projects | $ 87 |
Real Estate Investments - Pro_2
Real Estate Investments - Properties Sales (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property item | Mar. 31, 2023 USD ($) item property | Dec. 31, 2023 USD ($) | |
Disposals and other | |||
Carrying value | $ 956,366,000 | $ 987,965,000 | |
Net gain (loss) | 3,251,000 | $ 15,373,000 | |
Distributions paid to non-controlling interests related to property sale | $ 2,305,000 | ||
Properties sold | |||
Disposals and other | |||
Number of properties sold | property | 7 | 3 | |
Number of beds or units in property sold | item | 378 | 295 | |
Sales price | $ 26,293,000 | $ 32,250,000 | |
Carrying value | 22,056,000 | 16,089,000 | |
Net gain (loss) | 3,251,000 | $ 15,373,000 | |
Net (Loss) Gain | $ (60,000) | ||
Properties sold | ALF | Florida | |||
Disposals and other | |||
Number of properties sold | property | 1 | ||
Number of beds or units in property sold | item | 60 | ||
Sales price | $ 4,500,000 | ||
Carrying value | 4,579,000 | ||
Net (Loss) Gain | $ (319,000) | ||
Properties sold | ALF | Kentucky | |||
Disposals and other | |||
Number of properties sold | property | 5 | 1 | |
Number of beds or units in property sold | item | 208 | 60 | |
Sales price | $ 1,600,000 | $ 11,000,000 | |
Carrying value | 1,282,000 | 10,710,000 | |
Net (Loss) Gain | $ (356,000) | $ 72,000 | |
Properties sold | ALF | Wisconsin | |||
Disposals and other | |||
Number of properties sold | property | 1 | ||
Number of beds or units in property sold | item | 110 | ||
Sales price | $ 20,193,000 | ||
Carrying value | 16,195,000 | ||
Net (Loss) Gain | 3,986,000 | ||
Distributions paid to non-controlling interests related to property sale | $ 2,305,000 | ||
Properties sold | SNF | New Mexico | |||
Disposals and other | |||
Number of properties sold | property | 2 | ||
Number of beds or units in property sold | item | 235 | ||
Sales price | $ 21,250,000 | ||
Carrying value | 5,379,000 | ||
Net (Loss) Gain | $ 15,301,000 |
Real Estate Investments - Finan
Real Estate Investments - Financing Receivable (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2024 USD ($) lease property | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) property item | Dec. 31, 2022 USD ($) item property | Dec. 31, 2023 USD ($) property item | Nov. 30, 2023 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Number of properties | property | 127 | |||||
Gross Investment | $ 1,342,921 | |||||
Interest income from financing receivables | 3,830 | $ 3,751 | ||||
Lease renewal term | 4 years | |||||
Provision for credit losses | 24 | 1,731 | ||||
Financing receivables | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Number of properties | property | 14 | 14 | ||||
Number of Beds/Units | item | 822 | |||||
Gross Investment | $ 197,990 | $ 197,990 | ||||
LTC Contributions | $ 179,834 | |||||
Interest income from financing receivables | $ 3,830 | $ 3,751 | ||||
ALF & MC | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Percentage of contractual initial cash yield | 7.25% | |||||
Lease term | 10 years | |||||
Number of operating lease renewals | lease | 2 | |||||
Lease renewal term | 5 years | |||||
Percentage of contractual initial cash yield in year three | 7.50% | |||||
Percentage of floor on initial cash yield | 2% | |||||
Percentage of ceiling on initial cash yield | 4% | |||||
Maximum percentage of purchase option to buy properties | 50% | |||||
Percentage of cash return | 9% | |||||
ALF & MC | Financing receivables | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Percentage of contractual initial cash yield | 7.25% | 7.25% | ||||
Interest income from financing receivables | $ 2,426 | $ 2,345 | ||||
ALF & MC | North Carolina | Financing receivables | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Number of properties | property | 11 | 11 | ||||
Number of Beds/Units | item | 523 | |||||
Gross Investment | $ 121,321 | $ 121,321 | ||||
LTC Contributions | $ 117,490 | |||||
SNF | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Number of properties | property | 50 | |||||
Gross Investment | $ 597,015 | |||||
Lease term | 10 years | |||||
Number of operating lease renewals | lease | 2 | |||||
Lease renewal term | 5 years | |||||
SNF | Financing receivables | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Percentage of contractual initial cash yield | 7.25% | 7.25% | ||||
Interest income from financing receivables | $ 1,404 | $ 1,406 | ||||
SNF | Florida | Financing receivables | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Number of properties | property | 3 | |||||
Number of Beds/Units | item | 299 | |||||
Gross Investment | $ 76,669 | |||||
LTC Contributions | $ 62,344 |
Real Estate Investments - Accru
Real Estate Investments - Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate Investments | ||
Interest Receivable | $ 55,842 | $ 53,960 |
Real Estate Investments - Mortg
Real Estate Investments - Mortgage Loan (Details) | 3 Months Ended | |||
Mar. 31, 2024 USD ($) loan item property state $ / item | Sep. 30, 2023 USD ($) item period | Mar. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) | |
Real Estate [Line Items] | ||||
Gross Investment | $ 1,342,921,000 | |||
Percentage of Investment | 100% | |||
Number of properties | property | 127 | |||
Notes receivable, net of credit loss reserve | $ 59,946,000 | $ 60,490,000 | ||
Remaining commitment | $ 66,218,000 | |||
Additional interest income related to the exit IRR | $ 1,380,000 | |||
SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 6,231 | |||
ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 4,657 | |||
SNF | ||||
Real Estate [Line Items] | ||||
Gross Investment | $ 597,015,000 | |||
Percentage of Investment | 44.50% | |||
Number of properties | property | 50 | |||
Average Investment per Bed/Unit | $ / item | 94.03 | |||
SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 6,113 | |||
SNF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 236 | |||
ALF | ||||
Real Estate [Line Items] | ||||
Gross Investment | $ 733,901,000 | |||
Percentage of Investment | 54.60% | |||
Number of properties | property | 76 | |||
Average Investment per Bed/Unit | $ / item | 166 | |||
ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 4,421 | |||
ILF/ALF/MC | Georgia | ||||
Real Estate [Line Items] | ||||
Payments to Acquire Real Estate | $ 51,111,000 | |||
Mezzanine loan | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 136 | |||
Additional interest income related to the exit IRR | $ 1,380,000 | |||
Mezzanine loan | ILF/ALF/MC | Georgia | ||||
Real Estate [Line Items] | ||||
Gross Investment | 42,251,000 | |||
Mortgage loans with 7.5% Interest Maturing 2024 | Mezzanine loan | ||||
Real Estate [Line Items] | ||||
Notes receivable, net of credit loss reserve | $ 7,461,000 | |||
Mortgage loans with 9.8% Interest Maturing 2045 | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 10.10% | |||
Mortgage Loans | ||||
Real Estate [Line Items] | ||||
Gross Investment | $ 485,095,000 | |||
Percentage of Investment | 100% | |||
Number of Loans | loan | 15 | |||
Number of properties | property | 46 | |||
Average Investment per Bed/Unit | $ / item | 114.60 | |||
Number of states in which properties are located | state | 8 | |||
Number of borrowers | item | 9 | |||
Mortgage Loans | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 3,041 | |||
Mortgage Loans | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 1,192 | |||
Mortgage Loans | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 2.25% | |||
Mortgage Loans | ALF | ||||
Real Estate [Line Items] | ||||
Internal Rate of Return | 8% | |||
Mortgage Loans | ILF/ALF/MC | Georgia | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.50% | |||
Gross Investment | $ 51,111,000 | |||
Number of beds/units | item | 203 | |||
Internal Rate of Return | 7.75% | |||
Mortgage Loans | Mortgage loans with 7.5% Interest Maturing 2023 | SNF | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 91 | |||
Mortgage Loans | Mortgage loans with 7.5% Interest Maturing 2024 | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.50% | |||
Gross Investment | $ 29,346,000 | |||
Percentage of Investment | 6% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 1 | |||
Average Investment per Bed/Unit | $ / item | 155.27 | |||
Mortgage Loans | Mortgage loans with 7.5% Interest Maturing 2024 | SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 189 | |||
Mortgage Loans | Mortgage loans with 7.5% Interest Maturing 2024 | OTH | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.50% | |||
Gross Investment | $ 2,013,000 | |||
Percentage of Investment | 0.40% | |||
Number of Loans | loan | 1 | |||
Mortgage Loans | Mortgage loans with 7.5% Interest Maturing 2024 | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.50% | |||
Gross Investment | $ 51,111,000 | |||
Percentage of Investment | 10.50% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 1 | |||
Average Investment per Bed/Unit | $ / item | 251.78 | |||
Mortgage Loans | Mortgage loans with 7.5% Interest Maturing 2024 | ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 203 | |||
Mortgage Loans | Mortgage loans with 8.8% Interest Maturing 2025 | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 8.80% | |||
Gross Investment | $ 4,000,000 | |||
Percentage of Investment | 0.80% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 2 | |||
Average Investment per Bed/Unit | $ / item | 43.48 | |||
Mortgage Loans | Mortgage loans with 8.8% Interest Maturing 2025 | ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 92 | |||
Mortgage Loans | Mortgage loans with 7.8% Interest Maturing 2025 | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.80% | |||
Gross Investment | $ 16,706,000 | |||
Percentage of Investment | 3.50% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 1 | |||
Average Investment per Bed/Unit | $ / item | 149.16 | |||
Mortgage Loans | Mortgage loans with 7.8% Interest Maturing 2025 | ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 112 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2025, NC | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.30% | |||
Gross Investment | $ 10,750,000 | $ 10,750,000 | ||
Percentage of Investment | 2.20% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 1 | |||
Average Investment per Bed/Unit | $ / item | 238.89 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2025, NC | ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 45 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2025, NC | ALF | ALF Units | North Carolina | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.25% | |||
Number of beds/units | item | 45 | |||
Internal Rate of Return | 9% | |||
Loan Term | 2 years | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2025, NC/SC | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.30% | |||
Gross Investment | $ 58,519,000 | |||
Percentage of Investment | 12.10% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 13 | |||
Average Investment per Bed/Unit | $ / item | 111.89 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2025, NC/SC | ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 523 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2026 | OTH | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.30% | |||
Gross Investment | $ 826,000 | |||
Percentage of Investment | 0.20% | |||
Number of Loans | loan | 1 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2026 | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 7.30% | |||
Gross Investment | $ 34,043,000 | |||
Percentage of Investment | 7% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 4 | |||
Average Investment per Bed/Unit | $ / item | 156.88 | |||
Mortgage Loans | Mortgage loans with 7.3% Interest Maturing 2026 | ALF | ALF Units | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 217 | |||
Mortgage Loans | Mortgage loans with 8.8% Interest Maturing 2026 | UDP | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 8.80% | |||
Gross Investment | $ 2,940,000 | |||
Percentage of Investment | 0.60% | |||
Number of Loans | loan | 1 | |||
Mortgage Loans | Mortgage loans with 8.8% Interest Maturing 2028 | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 8.80% | |||
Gross Investment | $ 16,500,000 | |||
Percentage of Investment | 3.40% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 1 | |||
Average Investment per Bed/Unit | $ / item | 110 | |||
Mortgage Loans | Mortgage loans with 8.8% Interest Maturing 2028 | SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 150 | |||
Mortgage Loans | Mortgage loans with 10.3% Interest Maturing 2045 | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 10.50% | |||
Gross Investment | $ 14,825,000 | |||
Percentage of Investment | 3.10% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 1 | |||
Average Investment per Bed/Unit | $ / item | 101.54 | |||
Mortgage Loans | Mortgage loans with 10.3% Interest Maturing 2045 | SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 146 | |||
Mortgage Loans | Mortgage loans with 10.6% Interest Maturing 2043 | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 10.80% | |||
Gross Investment | $ 183,966,000 | |||
Percentage of Investment | 37.90% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 15 | |||
Average Investment per Bed/Unit | $ / item | 98.12 | |||
Mortgage Loans | Mortgage loans with 10.6% Interest Maturing 2043 | SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 1,875 | |||
Mortgage Loans | Mortgage loans with 9.6% Interest Maturing 2045 [Member] | SNF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 9.80% | |||
Gross Investment | $ 39,850,000 | |||
Percentage of Investment | 8.20% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 4 | |||
Average Investment per Bed/Unit | $ / item | 83.02 | |||
Mortgage Loans | Mortgage loans with 9.6% Interest Maturing 2045 [Member] | SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 480 | |||
Mortgage Loans | Mortgage Loans with 10.1% Interest Maturing 2045 | SNF | ||||
Real Estate [Line Items] | ||||
Gross Investment | $ 19,700,000 | |||
Percentage of Investment | 4.10% | |||
Number of Loans | loan | 1 | |||
Number of properties | property | 2 | |||
Average Investment per Bed/Unit | $ / item | 98.01 | |||
Mortgage Loans | Mortgage Loans with 10.1% Interest Maturing 2045 | SNF | SNF Beds | ||||
Real Estate [Line Items] | ||||
Number of beds/units | item | 201 | |||
Mortgage Loans | Mortgage Loans With 8.75 Interest | ALF | ||||
Real Estate [Line Items] | ||||
Interest rate (as a percent) | 8.75% | |||
Gross Investment | $ 19,500,000 | |||
Number of beds/units | item | 85 | |||
Borrower contribution | $ 12,100,000 | |||
Remaining commitment | $ 16,600 | $ 16,600 | ||
Loan Term | 3 years | |||
Extension term number of options | period | 2 | |||
Extension period of mortgage loan on real estate properties | 1 year |
Real Estate Investments - Mor_2
Real Estate Investments - Mortgage Loans Activity (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property item period | Sep. 30, 2023 USD ($) item period | Mar. 31, 2023 USD ($) item | |
Mortgage Loans | |||
Originations and funding under mortgage loans receivable | $ 3,128,000 | $ 62,844,000 | |
Application of interest reserve | 14,000 | 1,149,000 | |
Scheduled principal payments received | (125,000) | (125,000) | |
Mortgage loan premium amortization | (2,000) | (2,000) | |
Provision for loan loss reserve | (31,000) | (639,000) | |
Net increase in mortgage loans receivable | 2,984,000 | 63,227,000 | |
Gross Investment | $ 1,342,921,000 | ||
Number of properties | property | 127 | ||
Remaining commitment | $ 66,218,000 | ||
Percentage of Investment | 100% | ||
Additions to mortgage loans | $ 983,000 | ||
Accrued interest receivable | $ 55,842,000 | ||
Mortgage Loans | |||
Mortgage Loans | |||
Gross Investment | $ 485,095,000 | ||
Number of properties | property | 46 | ||
Percentage of Investment | 100% | ||
Other Mortgage Loans | |||
Mortgage Loans | |||
Additions to mortgage loans | $ 188,000 | ||
Mezzanine loan | |||
Mortgage Loans | |||
Number of beds/units | item | 136 | ||
SNF | |||
Mortgage Loans | |||
Gross Investment | $ 597,015,000 | ||
Number of properties | property | 50 | ||
Percentage of Investment | 44.50% | ||
SNF | Mortgage Loans | |||
Mortgage Loans | |||
Interest rate (as a percent) | 2.25% | ||
SNF | Mortgage loans with 7.5% Interest Maturing 2024 | Mortgage Loans | |||
Mortgage Loans | |||
Gross Investment | $ 29,346,000 | ||
Interest rate (as a percent) | 7.50% | ||
Number of properties | property | 1 | ||
Percentage of Investment | 6% | ||
SNF | Mortgage loans with 8.8% Interest Maturing 2028 | Mortgage Loans | |||
Mortgage Loans | |||
Gross Investment | $ 16,500,000 | ||
Interest rate (as a percent) | 8.80% | ||
Number of properties | property | 1 | ||
Percentage of Investment | 3.40% | ||
ALF | |||
Mortgage Loans | |||
Gross Investment | $ 733,901,000 | ||
Number of properties | property | 76 | ||
Percentage of Investment | 54.60% | ||
ALF | Mortgage Loans | |||
Mortgage Loans | |||
Internal Rate of Return | 8% | ||
ALF | Mortgage loans with 7.3% Interest Maturing 2025, NC | Mortgage Loans | |||
Mortgage Loans | |||
Gross Investment | $ 10,750,000 | $ 10,750,000 | |
Interest rate (as a percent) | 7.30% | ||
Number of properties | property | 1 | ||
Percentage of Investment | 2.20% | ||
ALF | Mortgage loans with 7.5% Interest Maturing 2024 | Mortgage Loans | |||
Mortgage Loans | |||
Gross Investment | $ 51,111,000 | ||
Interest rate (as a percent) | 7.50% | ||
Number of properties | property | 1 | ||
Percentage of Investment | 10.50% | ||
ALF | Mortgage Loans With 8.75 Interest | Mortgage Loans | |||
Mortgage Loans | |||
Loan Term | 3 years | ||
Gross Investment | $ 19,500,000 | ||
Interest rate (as a percent) | 8.75% | ||
Number of beds/units | item | 85 | ||
Borrower contribution | $ 12,100,000 | ||
Remaining commitment | $ 16,600 | $ 16,600 | |
Extension term number of options | period | 2 | ||
Michigan | ALF & MC | Mortgage Loans With 8.75 Interest | |||
Mortgage Loans | |||
Loan Term | 3 years | ||
Gross Investment | $ 19,500,000 | ||
Interest rate (as a percent) | 8.75% | ||
Number of beds/units | item | 85 | ||
Borrower contribution | $ 12,100,000 | ||
Funding under mortgage loan commitment | $ 2,940,000 | ||
Extension term number of options | period | 2 | ||
Loan extension term | 1 year | ||
Georgia | ILF/ALF/MC | |||
Mortgage Loans | |||
Payments to Acquire Real Estate | 51,111,000 | ||
Georgia | ILF/ALF/MC | Mortgage Loans | |||
Mortgage Loans | |||
Gross Investment | $ 51,111,000 | ||
Interest rate (as a percent) | 7.50% | ||
Internal Rate of Return | 7.75% | ||
Number of beds/units | item | 203 | ||
Georgia | ILF/ALF/MC | Mezzanine loan | |||
Mortgage Loans | |||
Gross Investment | $ 42,251,000 | ||
SNF Beds | |||
Mortgage Loans | |||
Number of beds/units | item | 6,231 | ||
SNF Beds | Mortgage Loans | |||
Mortgage Loans | |||
Number of beds/units | item | 3,041 | ||
SNF Beds | SNF | |||
Mortgage Loans | |||
Number of beds/units | item | 6,113 | ||
SNF Beds | SNF | Mortgage loans with 7.5% Interest Maturing 2024 | Mortgage Loans | |||
Mortgage Loans | |||
Number of beds/units | item | 189 | ||
SNF Beds | SNF | Mortgage loans with 8.8% Interest Maturing 2028 | Mortgage Loans | |||
Mortgage Loans | |||
Number of beds/units | item | 150 | ||
ALF Units | |||
Mortgage Loans | |||
Number of beds/units | item | 4,657 | ||
ALF Units | Mortgage Loans | |||
Mortgage Loans | |||
Number of beds/units | item | 1,192 | ||
ALF Units | SNF | |||
Mortgage Loans | |||
Number of beds/units | item | 236 | ||
ALF Units | ALF | |||
Mortgage Loans | |||
Number of beds/units | item | 4,421 | ||
ALF Units | ALF | Mortgage loans with 7.3% Interest Maturing 2025, NC | Mortgage Loans | |||
Mortgage Loans | |||
Number of beds/units | item | 45 | ||
ALF Units | ALF | Mortgage loans with 7.5% Interest Maturing 2024 | Mortgage Loans | |||
Mortgage Loans | |||
Number of beds/units | item | 203 | ||
ALF Units | North Carolina | ALF | Mortgage loans with 7.3% Interest Maturing 2025, NC | Mortgage Loans | |||
Mortgage Loans | |||
Loan Term | 2 years | ||
Interest rate (as a percent) | 7.25% | ||
Internal Rate of Return | 9% | ||
Number of beds/units | item | 45 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Ventures - Investment (Details) | 3 Months Ended | |||
Apr. 01, 2024 USD ($) item | Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Investment in Unconsolidated Joint Ventures | ||||
Carrying Value | $ 19,340,000 | $ 19,340,000 | ||
Percentage of Investment | 100% | |||
Non-cash Income Accrued | $ 52,000 | $ 1,149,000 | ||
Gross Investment | 1,342,921,000 | |||
Income from unconsolidated joint ventures | $ 376,000 | 376,000 | ||
Mortgage Loans | ||||
Investment in Unconsolidated Joint Ventures | ||||
Percentage of Investment | 100% | |||
Gross Investment | $ 485,095,000 | |||
Subsequent Event | Mortgage Loans With Interest 9.15 | ||||
Investment in Unconsolidated Joint Ventures | ||||
Interest rate (as a percent) | 9.15% | |||
Loan Term | 5 years | |||
Joint Venture | Not primary beneficiary | ||||
Investment in Unconsolidated Joint Ventures | ||||
Number of units | item | 362 | |||
Carrying Value | $ 19,340,000 | |||
Income Recognized | 376,000 | 376,000 | ||
Cash Income Earned | 112,000 | |||
Non-cash Income Accrued | $ 264,000 | 376,000 | ||
UDP | Joint Venture | Not primary beneficiary | ||||
Investment in Unconsolidated Joint Ventures | ||||
Income Recognized | 264,000 | |||
Non-cash Income Accrued | 264,000 | |||
UDP | Joint Venture | Not primary beneficiary | Washington | ||||
Investment in Unconsolidated Joint Ventures | ||||
Percentage of Investment | 11.60% | |||
Percentage of cash return | 8% | |||
Percentage of internal rate of return | 14% | |||
Combination ALF/MC | Joint Venture | Not primary beneficiary | ||||
Investment in Unconsolidated Joint Ventures | ||||
Income Recognized | $ 112,000 | 112,000 | ||
Cash Income Earned | $ 112,000 | |||
Non-cash Income Accrued | $ 112,000 | |||
Combination ALF/MC | Joint Venture | Not primary beneficiary | Internal Rate of Return is Until Eight Percent | ||||
Investment in Unconsolidated Joint Ventures | ||||
Percentage of internal rate of return | 8% | |||
Combination ALF/MC | Joint Venture | Not primary beneficiary | The Internal Rate of Return is Between Twelve and Fourteen Percent | Minimum | ||||
Investment in Unconsolidated Joint Ventures | ||||
Percentage of internal rate of return | 12% | |||
Combination ALF/MC | Joint Venture | Not primary beneficiary | The Internal Rate of Return is Between Twelve and Fourteen Percent | Maximum | ||||
Investment in Unconsolidated Joint Ventures | ||||
Percentage of internal rate of return | 14% | |||
Combination ALF/MC | Joint Venture | Not primary beneficiary | Washington | ||||
Investment in Unconsolidated Joint Ventures | ||||
Preferred return percentage | 12% | |||
Contractual cash portion | 7% | |||
Number of units | item | 95 | |||
Carrying Value | $ 6,340,000 | |||
Percentage of Investment | 15.50% | |||
Combination ALF/MC | 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% | |||
Combination ALF/MC | 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% | |||
Combination ILF/ALF | Joint Venture | Not primary beneficiary | ||||
Investment in Unconsolidated Joint Ventures | ||||
Income Recognized | $ 264,000 | |||
Non-cash Income Accrued | $ 264,000 | |||
Combination ILF/ALF | Joint Venture | Not primary beneficiary | Washington | ||||
Investment in Unconsolidated Joint Ventures | ||||
Preferred return percentage | 14% | |||
Contractual cash portion | 8% | |||
Number of units | item | 267 | |||
Carrying Value | $ 13,000,000 | |||
Skilled Nursing and Assisted Living Facility Properties | Subsequent Event | ||||
Investment in Unconsolidated Joint Ventures | ||||
Number of units | 78 | |||
Skilled Nursing and Assisted Living Facility Properties | Subsequent Event | Mortgage Loans | ||||
Investment in Unconsolidated Joint Ventures | ||||
Gross Investment | $ 12,700,000 |
Notes Receivable - Investment i
Notes Receivable - Investment in Notes Receivable (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) loan | Mar. 31, 2023 item | |
Notes Receivable | ||
Gross Investment | $ 1,342,921 | |
ALF | ||
Notes Receivable | ||
Gross Investment | 733,901 | |
SNF | ||
Notes Receivable | ||
Gross Investment | 597,015 | |
Notes Receivable | ||
Notes Receivable | ||
Gross Investment | $ 60,551 | |
Number of Loans | loan | 8 | |
Working capital loans | Working capital loan 4% interest rate, 2024 maturity | SNF | ||
Notes Receivable | ||
Gross Investment | $ 13,531 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 4% | |
Working capital loans | Working capital loan 5% interest rate, 2025 maturity | ALF | ||
Notes Receivable | ||
Gross Investment | $ 732 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 5% | |
Working capital loans | Working capital loan 6.5% interest rate, 2030 maturity | SNF | ||
Notes Receivable | ||
Gross Investment | $ 138 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 6.50% | |
Working capital loans | Working capital loan 7.3% interest rate, 2030 maturity | ALF | ||
Notes Receivable | ||
Gross Investment | $ 500 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 7.30% | |
Working capital loans | Working capital loan with 7.4 percent interest rate 2030 maturity | ALF | ||
Notes Receivable | ||
Gross Investment | $ 957 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 7.40% | |
Working capital loans | Working capital loan 7% interest rate, 2031 maturity | ALF | ||
Notes Receivable | ||
Gross Investment | $ 2,693 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 0% | |
Mezzanine loan | ||
Notes Receivable | ||
Number of units | item | 136 | |
Mezzanine loan | Mezzanine loan loan 8% interest rate, 2027 maturity | ALF | ||
Notes Receivable | ||
Internal Rate of Return | 11% | |
Gross Investment | $ 25,000 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 8% | |
Mezzanine loan | Mezzanine loan loan 8.8% interest rate, 2028 maturity | ALF | ||
Notes Receivable | ||
Internal Rate of Return | 12% | |
Gross Investment | $ 17,000 | |
Number of Loans | loan | 1 | |
Interest rate (as a percent) | 8.80% |
Notes Receivable - Components (
Notes Receivable - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Notes receivable activities | ||
Notes receivable loan loss reserve | $ (605) | $ (611) |
Total | 59,946 | 60,490 |
Mezzanine loan | ||
Notes receivable activities | ||
Mezzanine loan | 42,000 | 42,000 |
Working capital loans | ||
Notes receivable activities | ||
Mezzanine loan | $ 18,551 | $ 19,101 |
Notes Receivable - Notes Receiv
Notes Receivable - Notes Receivable Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Notes receivable activities | ||
Advances under notes receivable | $ 605 | |
Principal payments received under notes receivable | $ (550) | (12,641) |
Principal payments received under notes receivable | (550) | (5,180) |
Recovery of credit losses | 6 | 120 |
Net increase in notes receivable | $ (544) | $ (11,916) |
Notes Receivable - New Loan Com
Notes Receivable - New Loan Commitment (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) | |
Notes receivable activities | |||
Gross Investment | $ 1,342,921 | ||
Principal payments received on notes receivable | 550 | $ 5,180 | |
Additional interest income related to the exit IRR | 1,380 | ||
Amounts funded | 605 | ||
Mortgage Loans | |||
Notes receivable activities | |||
Gross Investment | 485,095 | ||
Mortgage Loans | ILF/ALF/MC | Georgia | |||
Notes receivable activities | |||
Gross Investment | $ 51,111 | ||
Interest rate (as a percent) | 7.50% | ||
Number of units | item | 203 | ||
Loan principal amount | $ 7,461 | ||
Mezzanine loan | |||
Notes receivable activities | |||
Principal payments received on notes receivable | 4,545 | ||
Additional interest income related to the exit IRR | 1,380 | ||
Exit IRR | $ 190 | ||
Number of units | item | 136 | ||
Mezzanine loan | 42,000 | $ 42,000 | |
Mezzanine loan | ILF/ALF/MC | Georgia | |||
Notes receivable activities | |||
Gross Investment | $ 42,251 | ||
Notes Receivable | |||
Notes receivable activities | |||
Gross Investment | $ 60,551 |
Lease Incentives - Activity (De
Lease Incentives - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Non-contingent lease incentives | $ 3,578 | $ 2,607 | |
Lease incentives funded | (1,395) | ||
Amortization of lease incentives | (233) | $ (209) | |
Other adjustments | (191) | (9) | |
Net decrease in non-contingent lease incentives | 971 | $ (218) | |
Brookdale | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Lease incentives funded | $ 1,107 |
Debt Obligations - Bank Borrowi
Debt Obligations - Bank Borrowings (Details) | 3 Months Ended | |
Jan. 04, 2024 | Mar. 31, 2024 USD ($) loan | |
Debt Obligations | ||
Number of term loans | loan | 2 | |
Revolving line of credit | ||
Debt Obligations | ||
Unused commitment fee (as a percent) | 0.20% | |
Revolving line of credit | SOFR | ||
Debt Obligations | ||
Basis spread over base rate (as a percent) | 1.15% | |
Credit Agreement | ||
Debt Obligations | ||
Maximum available under facility | $ 500,000,000 | |
Contingent increase in maximum borrowing capacity | $ 1,000,000,000,000 | |
Additional extension period option | 1 year | 1 year |
Revolving Credit Facility | ||
Debt Obligations | ||
Maximum available under facility | $ 400,000,000 | |
Term loans | ||
Debt Obligations | ||
Maximum available under facility | $ 50,000,000 | |
Term loans | SOFR | ||
Debt Obligations | ||
Basis spread over base rate (as a percent) | 1.35% |
Debt Obligations - Interest Rat
Debt Obligations - Interest Rate Swap Agreement (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Level 2 | |||
Debt Obligations | |||
Notional Amount | $ 100,000 | ||
Fair Value | $ 6,488 | $ 6,110 | |
Interest Rate Swap | |||
Debt Obligations | |||
Number of interest rate swaps | item | 2 | ||
Interest Rate Swap | Minimum | |||
Debt Obligations | |||
Debt instrument term | 4 years | ||
Interest Rate Swap | Maximum | |||
Debt Obligations | |||
Debt instrument term | 5 years | ||
Interest Rate Swap | Cash Flow Hedging | |||
Debt Obligations | |||
Increase (decrease) in fair value | $ 378,000 | $ (1,362,000) | |
Interest Rate Swap | Cash Flow Hedging | Maturing on November 19, 2025 | Level 2 | |||
Debt Obligations | |||
Notional Amount | 50,000 | ||
Fair Value | 2,750 | 2,698 | |
Interest Rate Swap | Cash Flow Hedging | Maturing on November 19, 2026 | Level 2 | |||
Debt Obligations | |||
Notional Amount | 50,000 | ||
Fair Value | $ 3,738 | $ 3,412 | |
Interest Rate Swap | Cash Flow Hedging | SOFR | Maturing on November 19, 2025 | Level 2 | |||
Debt Obligations | |||
Swap rate (in percentage) | 2.62% | ||
Interest Rate Swap | Cash Flow Hedging | SOFR | Maturing on November 19, 2026 | Level 2 | |||
Debt Obligations | |||
Swap rate (in percentage) | 2.76% |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Senior Unsecured Notes | Minimum | |
Debt Obligations | |
Interest rate (as a percent) | 3.66% |
Senior Unsecured Notes | Maximum | |
Debt Obligations | |
Interest rate (as a percent) | 5.03% |
Revolving line of credit | |
Financial covenants | |
Maximum ratio of total indebtedness to total asset value | 0.6 |
Maximum ratio of secured debt to total asset value | 0.35 |
Maximum ratio of unsecured debt to the value of the unencumbered asset pool | 0.6 |
Minimum ratio of EBITDA to fixed charges | 1.50 |
Debt Obligations - Component (D
Debt Obligations - Component (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 4.77% | |
Outstanding Balance | $ 860,211 | $ 891,317 |
Available for borrowing | $ 122,950 | 97,750 |
Revolving line of credit | ||
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 6.52% | |
Outstanding Balance | $ 277,050 | 302,250 |
Available for borrowing | $ 122,950 | 97,750 |
Term loans | ||
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 2.69% | |
Outstanding Balance | $ 99,695 | 99,658 |
Senior Unsecured Notes | ||
Debt Obligations | ||
Applicable Interest Rate (as a percent) | 4.20% | |
Outstanding Balance | $ 483,466 | $ 489,409 |
Debt Obligations - Borrowings a
Debt Obligations - Borrowings and Repayments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Borrowings | ||
Borrowings from revolving line of credit | $ 10,300 | $ 162,700 |
Total | 10,300 | 162,700 |
Repayments | ||
Revolving line of credit | (35,500) | (22,600) |
Senior unsecured notes | (6,000) | (7,000) |
Total | (41,500) | (29,600) |
Revolving line of credit | ||
Borrowings | ||
Borrowings from revolving line of credit | 10,300 | 162,700 |
Repayments | ||
Revolving line of credit | (35,500) | (22,600) |
Senior Unsecured Notes | ||
Repayments | ||
Senior unsecured notes | $ (6,000) | $ (7,000) |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Noncontrolling interest | |||
Gross Consolidated Assets | $ 1,818,395 | $ 1,855,098 | |
Non-controlling interests | 32,593 | $ 34,988 | |
Principal payments received on notes receivable | 550 | $ 5,180 | |
Partnership | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 297,530 | ||
Non-controlling interests | 32,593 | ||
Ohio | 2023 Acquisitions | Partnership | ILF/ALF/MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 54,758 | ||
Non-controlling interests | 9,134 | ||
North Carolina | 2023 Acquisitions | Partnership | ALF & MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 121,321 | ||
Non-controlling interests | 3,831 | ||
Florida | 2022 Acquisitions | Partnership | SNF | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 76,669 | ||
Non-controlling interests | 14,325 | ||
Oregon | 2018 Acquisitions | Partnership | ALF & MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 18,452 | ||
Non-controlling interests | 1,156 | ||
Oregon | 2018 Acquisitions | Partnership | ILF | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 14,650 | ||
Non-controlling interests | 2,907 | ||
South Carolina | 2017 Acquisitions | Partnership | ALF & MC | |||
Noncontrolling interest | |||
Gross Consolidated Assets | 11,680 | ||
Non-controlling interests | $ 1,240 |
Equity - Common Stock (Details)
Equity - Common Stock (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity | |||
Proceeds from common stock issued, net of issuance costs | $ 4,453,000 | $ 1,777,000 | |
Equity Distribution Agreements | |||
Equity | |||
Amount available under effective shelf registration statement | $ 71,509,000 | ||
Equity Distribution Agreements | Subsequent Event | |||
Equity | |||
Shares common stock sold | 204,700 | ||
Proceeds from common stock issued, net of issuance costs | $ 6,522,000 | ||
Amount available under effective shelf registration statement | $ 64,905,000 | ||
Common Stock | |||
Equity | |||
Number of shares repurchased | 49,540 | 41,350 | |
Common Stock | Equity Distribution Agreements | |||
Equity | |||
Maximum offering capacity under shelf registration statement | $ 200,000,000 | ||
Shares common stock sold | 139,100 | 48,500 | |
Proceeds from common stock issued, net of issuance costs | $ 4,453,000 | $ 1,777,000 | |
Reclassification of accumulated costs to additional paid in capital | $ 116,000 | $ 80,000 | |
Common Stock | Equity Distribution Agreements | Subsequent Event | |||
Equity | |||
Shares common stock sold | 204,700 | ||
Proceeds from common stock issued, net of issuance costs | $ 6,522,000 | ||
Reclassification of accumulated costs to additional paid in capital | $ 64,905,000 |
Equity - Distributions (Details
Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2024 | May 31, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Dividend Distributions | |||||
Paid | $ 24,616 | $ 23,563 | |||
Common Stock cash distributions | $ 0.57 | $ 0.57 | |||
Subsequent Event | |||||
Dividend Distributions | |||||
Dividends declared and paid per common share | $ 0.19 | $ 0.19 | $ 0.19 | ||
Common Stock | |||||
Dividend Distributions | |||||
Declared | $ 24,616 | $ 23,563 | |||
Paid | $ 24,616 | $ 23,563 | |||
Common Stock cash distributions | $ 0.19 | $ 0.19 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation plans (Details) | 3 Months Ended | |
Mar. 31, 2024 shares | Mar. 31, 2023 shares | |
Stock Based Compensation Plans | ||
Stock options granted (in shares) | 0 | 0 |
Options exercisable (in shares) | 0 | |
Options expired | 5,000 | 5,000 |
Options outstanding (in shares) | 0 | |
2015 Plan | ||
Stock Based Compensation Plans | ||
Ratio of shares subject to award granted | 1 | |
2021 Plan | ||
Stock Based Compensation Plans | ||
Total shares reserved for issuance of common stock related to the conversion of preferred stock | 1,900,000 |
Equity - Restricted Stock and P
Equity - Restricted Stock and Performance-based Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Based Compensation Plans | ||
Stock options granted (in shares) | 0 | 0 |
Restricted stock and performance-based stock units | ||
Restricted stock and performance based stock units activity | ||
Granted (in shares) | 292,060 | 214,827 |
Compensation expense | ||
Compensation expense related to share-based award | $ 2,202 | $ 2,088 |
Remaining compensation expense | 16,504 | |
Restricted stock and performance-based stock units | April - December 2024 | ||
Compensation expense | ||
Remaining compensation expense | 6,484 | |
Restricted stock and performance-based stock units | 2025 | ||
Compensation expense | ||
Remaining compensation expense | 6,266 | |
Restricted stock and performance-based stock units | 2026 | ||
Compensation expense | ||
Remaining compensation expense | 3,385 | |
Restricted stock and performance-based stock units | 2027 | ||
Compensation expense | ||
Remaining compensation expense | $ 369 | |
Restricted stock and performance-based stock units | Grant Date Price $31.84 | TSR Targets | ||
Restricted stock and performance based stock units activity | ||
Granted (in shares) | 62,914 | |
Granted (in dollars per share) | $ 31.84 | |
Restricted stock and performance-based stock units | Grant Date Price $37.16 | Three year vesting | ||
Restricted stock and performance based stock units activity | ||
Vesting period | 3 years | |
Restricted stock and performance-based stock units | Grant Date Price $33.94 | Three year vesting | ||
Restricted stock and performance based stock units activity | ||
Vesting period | 3 years | |
Restricted stock | ||
Restricted stock and performance based stock units activity | ||
Outstanding at the beginning of the period (in shares) | 258,620 | 229,236 |
Granted (in shares) | 159,536 | 127,960 |
Vested (in shares) | (114,782) | (98,206) |
Canceled (in shares) | (1,085) | |
Outstanding at the end of the period (in shares) | 303,374 | 257,905 |
Restricted stock | Grant Date Price $30.72 | Three year vesting | ||
Restricted stock and performance based stock units activity | ||
Granted (in shares) | 159,536 | |
Granted (in dollars per share) | $ 30.72 | |
Restricted stock | Grant Date Price $30.72 | TSR Targets | ||
Restricted stock and performance based stock units activity | ||
Vesting period | 3 years | |
Restricted stock | Grant Date Price $37.16 | Three year vesting | ||
Restricted stock and performance based stock units activity | ||
Granted (in shares) | 127,960 | |
Granted (in dollars per share) | $ 37.16 | |
Performance-based stock units | ||
Restricted stock and performance based stock units activity | ||
Vested (in shares) | 0 | 0 |
Performance-based stock units | Grant Date Price $31.84 | TSR Targets | ||
Restricted stock and performance based stock units activity | ||
Granted (in shares) | 69,610 | |
Granted (in dollars per share) | $ 31.84 | |
Performance-based stock units | Grant Date Price $31.84 | TSR Targets Relating to Predefined Peer Group | ||
Restricted stock and performance based stock units activity | ||
Vesting period | 3 years | |
Performance-based stock units | Grant Date Price $37.16 | TSR Targets | ||
Restricted stock and performance based stock units activity | ||
Granted (in shares) | 86,867 | |
Granted (in dollars per share) | $ 37.16 | |
Vesting period | 4 years | |
Performance-based stock units | Grant Date Price $37.16 | Accelerated TSR Targets | ||
Restricted stock and performance based stock units activity | ||
Vesting period | 3 years |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Commitments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) property | |
Commitments and Contingencies | |
Investment Commitment | $ 83,355 |
2024 Funding | 4,343 |
Total Commitment funded | 17,137 |
Remaining commitment | 66,218 |
Skilled Nursing Centers | |
Commitments and Contingencies | |
Fair value of earn-out liability | 3,000 |
Earn-out liability, Write off | $ 3,000 |
Number of properties acquired | property | 4 |
Real estate properties | |
Commitments and Contingencies | |
Investment Commitment | $ 22,442 |
2024 Funding | 1,026 |
Total Commitment funded | 5,184 |
Remaining commitment | 17,258 |
Accrued incentives and earn-out liabilities | |
Commitments and Contingencies | |
Investment Commitment | 16,125 |
2024 Funding | 189 |
Total Commitment funded | 1,647 |
Remaining commitment | 14,478 |
Mortgage loans | |
Commitments and Contingencies | |
Investment Commitment | 43,598 |
2024 Funding | 3,128 |
Total Commitment funded | 10,306 |
Remaining commitment | 33,292 |
Commitments To Expand and Renovate Properties | |
Commitments and Contingencies | |
Investment Commitment | 6,098 |
Contingent Funding Commitments | |
Commitments and Contingencies | |
Investment Commitment | 18,000 |
Notes receivable | |
Commitments and Contingencies | |
Investment Commitment | 1,190 |
Remaining commitment | 1,190 |
Construction loans | |
Commitments and Contingencies | |
Investment Commitment | $ 19,500 |
Major Operators (Details)
Major Operators (Details) | 3 Months Ended |
Mar. 31, 2024 item property | |
Major Operators | |
Number of major operators | 1 |
Prestige Healthcare | SNF | |
Major Operators | |
Number of beds | property | 24 |
Number of beds/units | 2,820 |
Prestige Healthcare | ALF | |
Major Operators | |
Number of beds/units | 93 |
Total Revenues | Operator Concentration Risk | Prestige Healthcare | |
Major Operators | |
Concentration risk (as a percent) | 16% |
Total Assets | Credit Concentration Risk | Prestige Healthcare | |
Major Operators | |
Concentration risk (as a percent) | 14.60% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income | $ 24,689 | $ 33,561 |
Less income allocated to non-controlling interests | (459) | (427) |
Less income allocated to participating securities: | ||
Non-forfeitable dividends on participating securities | (165) | (147) |
Income allocated to participating securities | (58) | |
Total net income allocated to participating securities | (165) | (205) |
Net income available to common stockholders | 24,065 | 32,929 |
Net income for diluted net income per share | $ 24,065 | $ 32,929 |
Reconciliation of shares | ||
Shares for basic net income per share | 42,891 | 41,082 |
Effect of dilutive securities: | ||
Total effect of dilutive securities (in shares) | 141 | 107 |
Shares for diluted net income per share | 43,032 | 41,189 |
Basic net income per share (in dollars per share) | $ 0.56 | $ 0.80 |
Diluted net income per share (in dollars per share) | $ 0.56 | $ 0.80 |
Performance-based stock units | ||
Effect of dilutive securities: | ||
Stock options and performance-based stock units (in shares) | 141 | 107 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Mar. 31, 2024 USD ($) item | Dec. 31, 2023 USD ($) item |
Fair value measurements | ||
Mortgage loans receivable, net of credit loss reserve | $ 480,250 | $ 477,266 |
Notes receivable, net of credit loss reserve | 59,946 | 60,490 |
Outstanding Balance | 860,211 | 891,317 |
Senior unsecured notes, net of debt issue costs | $ 483,466 | $ 489,409 |
Level 3 | Senior Unsecured Notes maturing before 2030 | Discount Rate | ||
Fair value measurements | ||
Future cash outflows discount rate (as a percent) | item | 0.065 | 0.065 |
Level 3 | Senior Unsecured Notes maturing 2030 and after | Discount Rate | ||
Fair value measurements | ||
Future cash outflows discount rate (as a percent) | item | 0.0675 | 0.0675 |
Level 3 | Financing receivables | Discount Rate | ||
Fair value measurements | ||
Future cash inflows discount rate (as a percent) | 0.076 | 0.076 |
Level 3 | Mortgage Loans Receivable | Discount Rate | ||
Fair value measurements | ||
Future cash inflows discount rate (as a percent) | 0.092 | 0.092 |
Level 3 | Notes Receivable | Discount Rate | ||
Fair value measurements | ||
Future cash inflows discount rate (as a percent) | item | 0.069 | 0.069 |
Carrying Value | ||
Fair value measurements | ||
Mortgage loans receivable, net of credit loss reserve | $ 480,250 | $ 477,266 |
Revolving line of credit | 277,050 | 302,250 |
Outstanding Balance | 99,695 | 99,658 |
Senior unsecured notes, net of debt issue costs | 483,466 | 489,409 |
Carrying Value | Financing receivables | ||
Fair value measurements | ||
Notes receivable, net of credit loss reserve | 196,010 | 196,032 |
Carrying Value | Notes Receivable | ||
Fair value measurements | ||
Notes receivable, net of credit loss reserve | 59,946 | 60,490 |
Fair Value | ||
Fair value measurements | ||
Revolving line of credit | 277,050 | 302,250 |
Outstanding Balance | 100,000 | 100,000 |
Fair Value | Financing receivables | ||
Fair value measurements | ||
Notes receivable, net of credit loss reserve | 199,381 | 199,199 |
Fair Value | Level 3 | ||
Fair value measurements | ||
Mortgage loans receivable, net of credit loss reserve | 564,493 | 554,993 |
Senior unsecured notes, net of debt issue costs | 435,801 | 439,865 |
Fair Value | Level 3 | Notes Receivable | ||
Fair value measurements | ||
Notes receivable, net of credit loss reserve | $ 67,278 | $ 67,877 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | ||||
Apr. 01, 2024 USD ($) item property shares | Jun. 30, 2024 $ / shares | May 31, 2024 $ / shares | Apr. 30, 2024 $ / shares | Mar. 31, 2024 USD ($) item property | Mar. 31, 2023 USD ($) property | |
Equity | ||||||
Gross Investment | $ 1,342,921,000 | |||||
Proceeds from common stock issued | $ 4,453,000 | $ 1,777,000 | ||||
Properties sold | ||||||
Equity | ||||||
Number of properties sold | property | 7 | 3 | ||||
Equity Distribution Agreements | ||||||
Equity | ||||||
Amount available under effective shelf registration statement | $ 71,509,000 | |||||
ALF | ||||||
Equity | ||||||
Gross Investment | 733,901,000 | |||||
SNF | ||||||
Equity | ||||||
Gross Investment | $ 597,015,000 | |||||
Lease term | 10 years | |||||
SNF | Texas | Master lease agreement | ||||||
Equity | ||||||
Number of beds/units | item | 1,444 | |||||
Subsequent Event | ||||||
Equity | ||||||
Dividends declared and paid per common share | $ / shares | $ 0.19 | $ 0.19 | $ 0.19 | |||
Subsequent Event | Equity Distribution Agreements | ||||||
Equity | ||||||
Shares common stock sold | shares | 204,700 | |||||
Proceeds from common stock issued | $ 6,522,000 | |||||
Amount available under effective shelf registration statement | 64,905,000 | |||||
Subsequent Event | Texas | Mortgage loans with 9.15 Interest | ||||||
Equity | ||||||
Gross Investment | $ 12,700,000 | |||||
Number of beds/units | item | 78 | |||||
Number of licensed beds | item | 104 | |||||
Loan Term | 5 years | |||||
Interest rate (as a percent) | 9.15% | |||||
Subsequent Event | ALF | Texas | Properties sold | ||||||
Equity | ||||||
Number of properties sold | property | 2 | |||||
Amount of real estate property sold | $ 500,000 | |||||
Proceeds from Sale of Real Estate | $ 400,000 | |||||
Subsequent Event | ALF | Texas | Mortgage loans with 9.15 Interest | ||||||
Equity | ||||||
Number of beds/units | item | 30 | |||||
Number of licensed beds | item | 34 | |||||
Subsequent Event | SNF | Texas | Mortgage loans with 9.15 Interest | ||||||
Equity | ||||||
Number of beds/units | item | 48 | |||||
Number of licensed beds | item | 70 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 24,230 | $ 33,134 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |