Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'OMEGA HEALTHCARE INVESTORS INC | ' |
Entity Central Index Key | '0000888491 | ' |
Trading Symbol | 'ohi | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock Shares Outstanding | ' | 126,039,605 |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real estate properties | ' | ' |
Land and buildings | $3,107,285 | $3,099,547 |
Less accumulated depreciation | -738,708 | -707,410 |
Real estate properties - net | 2,368,577 | 2,392,137 |
Investment in direct financing leases | 531,795 | 529,445 |
Mortgage notes receivable - net | 354,497 | 241,515 |
Real estate properties, total | 3,254,869 | 3,163,097 |
Other investments - net | 56,052 | 53,054 |
Total investments held, continuing operations | 3,310,921 | 3,216,151 |
Assets held for sale - net | 820 | 1,356 |
Total investments | 3,311,741 | 3,217,507 |
Cash and cash equivalents | 20,374 | 2,616 |
Restricted cash | 28,817 | 31,759 |
Accounts receivable - net | 152,863 | 147,504 |
Other assets | 65,130 | 62,830 |
Total assets | 3,578,925 | 3,462,216 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Revolving line of credit | ' | 326,000 |
Term loan | 200,000 | 200,000 |
Secured borrowings | 297,016 | 298,531 |
Unsecured borrowings - net | 1,594,106 | 1,199,887 |
Accrued expenses and other liabilities | 132,456 | 137,695 |
Total liabilities | 2,223,578 | 2,162,113 |
Stockholders' equity: | ' | ' |
Common stock $.10 par value authorized - 200,000 shares issued and outstanding - 125,419 shares as of March 31, 2014 and 123,530 as of December 31, 2013 | 12,542 | 12,353 |
Common stock - additional paid-in capital | 2,059,085 | 1,998,169 |
Cumulative net earnings | 982,478 | 926,649 |
Cumulative dividends paid | -1,698,758 | -1,637,068 |
Total stockholders' equity | 1,355,347 | 1,300,103 |
Total liabilities and stockholders' equity | $3,578,925 | $3,462,216 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 125,419 | 123,530 |
Common stock, shares outstanding | 125,419 | 123,530 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 15, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue | ' | ' | ' |
Rental income | ' | $95,918 | $93,109 |
Income from direct financing leases | ' | 14,084 | ' |
Mortgage interest income | ' | 9,326 | 7,346 |
Other investment income - net | ' | 1,421 | 1,306 |
Miscellaneous | ' | 252 | ' |
Total operating revenues | ' | 121,001 | 101,761 |
Expenses | ' | ' | ' |
Depreciation and amortization | ' | 31,444 | 31,959 |
General and administrative | ' | 6,497 | 5,197 |
Acquisition costs | ' | 95 | 134 |
Provisions for uncollectible mortgages, notes and accounts receivable | ' | -16 | ' |
Total operating expenses | ' | 38,020 | 37,290 |
Income before other income and expense | ' | 82,981 | 64,471 |
Other income (expense) | ' | ' | ' |
Interest income | ' | 8 | 3 |
Interest expense | ' | -27,081 | -25,672 |
Interest - amortization of deferred financing costs | ' | -922 | -682 |
Interest - refinancing costs | ' | -2,040 | ' |
Total other expense | ' | -30,035 | -26,351 |
Income before gain on assets sold | ' | 52,946 | 38,120 |
Gain on assets sold - net | ' | 2,883 | ' |
Net income available to common stockholders | ' | $55,829 | $38,120 |
Basic: | ' | ' | ' |
Net income (in dollars per share) | ' | $0.45 | $0.34 |
Diluted: | ' | ' | ' |
Net income (in dollars per share) | ' | $0.45 | $0.34 |
Dividends declared and paid per common share (in dollars per share) | $0.49 | $0.49 | $0.45 |
Weighted-average shares outstanding, basic (in shares) | ' | 124,459 | 112,782 |
Weighted-average shares outstanding, diluted (in shares) | ' | 124,822 | 113,522 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Unaudited (USD $) | Common Stock Par Value | Additional Paid-in Capital | Cumulative Net Earnings | Cumulative Dividends | Total |
In Thousands, unless otherwise specified | |||||
Balance (123,530 common shares) at Dec. 31, 2013 | $12,353 | $1,998,169 | $926,649 | ($1,637,068) | $1,300,103 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Amortization of restricted stock | ' | 2,227 | ' | ' | 2,227 |
Vesting of restricted stock to company executives, net of tax withholdings (31 shares) | 3 | -533 | ' | ' | -530 |
Dividend reinvestment plan (993 shares at $31.77 per share) | 99 | 31,441 | ' | ' | 31,540 |
Grant of stock as payment of directors fees (1 share at an average of $31.41 per share) | ' | 50 | ' | ' | 50 |
Equity Shelf Program (864 shares at $32.94 per share, net of issuance costs) | 87 | 27,731 | ' | ' | 27,818 |
Net income | ' | ' | 55,829 | ' | 55,829 |
Common dividends ($0.49 per share) | ' | ' | ' | -61,690 | -61,690 |
Balance (125,419 common shares) at Mar. 31, 2014 | $12,542 | $2,059,085 | $982,478 | ($1,698,758) | $1,355,347 |
CONSOLIDATED_STATEMENT_OF_STOC1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Unaudited (Parentheticals) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Balance (in shares) | 123,530 |
Dividend reinvestment plan, shares issued | 993 |
Dividend reinvestment plan (in dollars per share) | $31.77 |
Equity shelf program (in shares) | 864 |
Equity shelf program (in dollars per share) | $32.94 |
Common dividends, (in dollars per share) | $0.49 |
Balance (in shares) | 125,419 |
Directors | ' |
Grant of stock as payment of directors fees (in shares) | 1 |
Grant of stock as payment of directors fees (in dollars per share) | $31.41 |
Executives | ' |
Grant of restricted stock (in shares) | 31 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $55,829 | $38,120 |
Adjustment to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 31,444 | 31,959 |
Amortization of deferred financing and debt extinguishment costs | 2,962 | 682 |
Accretion of direct financing leases | -2,350 | ' |
Restricted stock amortization expense | 2,263 | 1,452 |
Gain on assets sold - net | -2,883 | ' |
Amortization of acquired in-place leases - net | -1,287 | -1,304 |
Change in operating assets and liabilities - net of amounts assumed/acquired: | ' | ' |
Accounts receivable, net | -431 | 635 |
Straight-line rent receivables | -5,324 | -6,010 |
Lease inducements | 715 | 842 |
Effective yield receivable on mortgage notes | -319 | -545 |
Other operating assets and liabilities | -2,563 | -8,231 |
Net cash provided by operating activities | 78,056 | 57,600 |
Cash flows from investing activities | ' | ' |
Acquisition of real estate - net of liabilities assumed and escrows acquired | -4,700 | ' |
Placement of mortgage loans | -113,114 | -2,049 |
Proceeds from sale of real estate investments | 3,631 | ' |
Capital improvements to real estate investments | -3,334 | -8,328 |
Proceeds from other investments | 1,067 | 1,770 |
Investments in other investments | -4,065 | -2,968 |
Collection of mortgage principal | 132 | 119 |
Net cash used in investing activities | -120,383 | -11,456 |
Cash flows from financing activities | ' | ' |
Proceeds from credit facility borrowings | 120,000 | 155,000 |
Payments on credit facility borrowings | -446,000 | -213,000 |
Receipts of other long-term borrowings | 594,320 | 59,355 |
Payments of other long-term borrowings | -201,238 | -59,997 |
Payments of financing related costs | -4,155 | -806 |
Receipts from dividend reinvestment plan | 31,540 | 36,330 |
Payments for exercised options and restricted stock - net | -530 | ' |
Net proceeds from issuance of common stock | 27,818 | 51,453 |
Dividends paid | -61,670 | -50,579 |
Net cash provided by (used in) financing activities | 60,085 | -22,244 |
Increase in cash and cash equivalents | 17,758 | 23,900 |
Cash and cash equivalents at beginning of period | 2,616 | 1,711 |
Cash and cash equivalents at end of period | 20,374 | 25,611 |
Interest paid during the period, net of amounts capitalized | $26,243 | $26,092 |
BASIS_OF_PRESENTATION_AND_SIGN
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Business Overview | |||||||||
Omega Healthcare Investors, Inc. (“Omega” or the “Company”) has one reportable segment consisting of investments in healthcare-related real estate properties. Our core business is to provide financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities (“SNFs”) located in the United States. Our core portfolio consists of long-term leases and mortgage agreements. All of our leases are “triple-net” leases, which require the tenants to pay all property-related expenses. Our mortgage revenue derives from fixed-rate mortgage loans, which are secured by first mortgage liens on the underlying real estate and personal property of the mortgagor. | |||||||||
Basis of Presentation | |||||||||
The accompanying unaudited consolidated financial statements for Omega have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods reported herein are not necessarily indicative of results to be expected for the full year. We have evaluated all subsequent events through the date of the filing of this Form 10-Q. These unaudited consolidated financial statements should be read in conjunction with the financial statements and the footnotes thereto included in our latest Annual Report on Form 10-K. | |||||||||
Our consolidated financial statements include the accounts of (i) Omega and (ii) all direct and indirect wholly owned subsidiaries of Omega. All inter-company accounts and transactions have been eliminated in consolidation of the financial statements. | |||||||||
Recent Accounting Pronouncements | |||||||||
Discontinued Operations | |||||||||
In April 2014, we adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update No (ASU 2014-08), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 on Discontinued Operations changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. Under the current US GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement component after the disposal. The new guidance eliminates these criteria. | |||||||||
The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within that year. Early adoption is permitted, and calendar year-end companies may early adopt the guidance in the first quarter of 2014, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issue. We have chosen to adopt the guidance effective January 1, 2014 and determined that the adoption had no impact on our consolidated financial statements. | |||||||||
Accounts Receivable | |||||||||
Accounts receivable includes: contractual receivables, effective yield interest receivables, straight-line rent receivables and lease inducements, net of an estimated provision for losses related to uncollectible and disputed accounts. Contractual receivables relate to the amounts currently owed to us under the terms of our lease and loan agreements. Effective yield interest receivables relate to the difference between the interest income recognized on an effective yield basis over the term of the loan agreement and the interest currently due to us according to the contractual agreement. Straight-line receivables relate to the difference between the rental revenue recognized on a straight-line basis and the amounts currently due to us according to the contractual agreement. Lease inducements result from value provided by us to the lessee at the inception or renewal of the lease and will be amortized as a reduction of rental revenue over the non cancellable lease term. | |||||||||
On a quarterly basis, we review our accounts receivable to determine their collectability. The determination of collectability of these assets requires significant judgment and is affected by several factors relating to the credit quality of our operators that we regularly monitor, including (i) payment history, (ii) the age of the contractual receivables, (iii) the current economic conditions and reimbursement environment, (iv) the ability of the tenant to perform under the terms of their lease and/or contractual loan agreements and (v) the value of the underlying collateral of the agreement. If we determine collectability of any of our contractual receivables is at risk, we estimate the potential uncollectible amounts and provide an allowance. In the case of a lease recognized on a straight-line basis or existence of lease inducements, we generally provide an allowance for straight-line accounts receivable and/or the lease inducements when certain conditions or indicators of adverse collectability are present. | |||||||||
A summary of our net receivables by type is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contractual receivables | $ | 3,352 | $ | 2,941 | |||||
Effective yield interest receivables | 5,653 | 5,333 | |||||||
Straight-line receivables | 128,810 | 123,486 | |||||||
Lease inducements | 15,513 | 16,228 | |||||||
Allowance | (465 | ) | (484 | ) | |||||
Accounts receivable – net | $ | 152,863 | $ | 147,504 | |||||
We continuously evaluate the payment history and financial strength of our operators and have historically established allowance reserves for straight-line rent adjustments for operators that do not meet our requirements. We consider factors such as payment history and the operator’s financial condition as well as current and future anticipated operating trends when evaluating whether to establish allowance reserves. |
PROPERTIES_AND_INVESTMENTS
PROPERTIES AND INVESTMENTS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
PROPERTIES AND INVESTMENTS | ' | ||||||||
NOTE 2 – PROPERTIES AND INVESTMENTS | |||||||||
In the ordinary course of our business activities, we periodically evaluate investment opportunities and extend credit to customers. We also regularly engage in lease and/or loan extensions and modifications. Additionally, we actively monitor and manage our investment portfolio with the objectives of improving credit quality and increasing investment returns. In connection with our portfolio management, we may engage in various collection and foreclosure activities. | |||||||||
If we acquire real estate pursuant to a foreclosure or bankruptcy proceeding, the assets will initially be included on the consolidated balance sheet at the lower of cost or estimated fair value. | |||||||||
Leased Property | |||||||||
Our leased real estate properties, represented by 420 SNFs, 18 assisted living facilities (“ALFs”) and 11 specialty facilities at March 31, 2014, are leased under provisions of single or master leases with initial terms typically ranging from 5 to 15 years, plus renewal options. Substantially all of our leases contain provisions for specified annual increases over the rents of the prior year and are generally computed in one of three methods depending on specific provisions of each lease as follows: (i) a specific annual percentage increase over the prior year’s rent, generally 2.5%; (ii) an increase based on the change in pre-determined formulas from year to year (i.e., such as increases in the Consumer Price Index (“CPI”)); or (iii) specific dollar increases over prior years. Under the terms of the leases, the lessee is responsible for all maintenance, repairs, taxes and insurance on the leased properties. | |||||||||
$4.7 Million of New Investment | |||||||||
On January 30, 2014, we acquired an ALF in Arizona from an unrelated third party for approximately $4.7 million. The operations of the 90 bed facility were transitioned to an existing operator of Omega. | |||||||||
Pro Forma Acquisition Results | |||||||||
The facilities acquired in 2014 and 2013 are included in our results of operations from the date of acquisition. The following unaudited pro forma results of operations reflect the impact of the transactions as if they occurred on January 1, 2013. For a list of the 2013 transactions, refer to Note 3 – Properties in our 2013 Form 10-K. In the opinion of management, all significant necessary adjustments to reflect the effect of the acquisitions have been made. The following pro forma information is not indicative of future operations. | |||||||||
Pro Forma | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts, unaudited) | |||||||||
Revenues | $ | 121,088 | $ | 102,666 | |||||
Net income available to common stockholders | 55,890 | 38,493 | |||||||
Earnings per share – diluted: | |||||||||
Net income available to common stockholders – as reported | $ | 0.45 | $ | 0.34 | |||||
Net income available to common stockholders – pro forma | 0.45 | 0.34 | |||||||
Assets Sold or Assets Held for Sale | |||||||||
Assets Sold | |||||||||
In the first quarter of 2014, we sold one SNF in Louisiana for approximately $1.0 million, resulting in a $0.8 million gain. We also sold two closed held-for-sale SNFs for total cash proceeds of $2.6 million, generating approximately a $2.1 million gain. | |||||||||
Assets Held for Sale | |||||||||
At March 31, 2014, we had one SNF and one parcel of land classified as held-for-sale with an aggregate net book value of approximately $0.8 million. | |||||||||
Mortgage Notes Receivables | |||||||||
Our mortgage notes receivables relate to 17 fixed-rate mortgages on 40 SNFs and two ALFs. The mortgage notes are secured by first mortgage liens on the borrowers’ underlying real estate and personal property. The mortgage notes receivable relate to facilities located in six states, which are operated by six independent healthcare operating companies. We monitor compliance with mortgages and when necessary have initiated collection, foreclosure and other proceedings with respect to certain outstanding loans. As of March 31, 2014, none of our mortgages were in default or in foreclosure proceedings. Where appropriate, the mortgaged properties are generally cross-collateralized with the master lease agreement with the same operator. | |||||||||
Mortgage interest income is recognized as earned over the terms of the related mortgage notes, using the effective yield method. Allowances are provided against earned revenues from mortgage interest when collection of amounts due becomes questionable or when negotiations for restructurings of troubled operators lead to lower expectations regarding ultimate collection. When collection is uncertain, mortgage interest income on impaired mortgage loans is recognized as received after taking into account application of security deposits. | |||||||||
$113 Million of New Investment in Q1 2014 | |||||||||
On January 17, 2014, we entered into a $112.5 million first mortgage loan with an existing operator of Omega. The loan is secured by 7 SNFs and 2 ALFs totaling 784 operating beds located in Pennsylvania (7) and Ohio (2). The loan is cross-defaulted and cross-collateralized with our existing master lease with the operator. The loan bears an initial annual interest rate of 9.5% and matures in January 2024. |
DIRECT_FINANCING_LEASES
DIRECT FINANCING LEASES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Leases, Capital [Abstract] | ' | ||||||||
DIRECT FINANCING LEASES | ' | ||||||||
NOTE 3 – DIRECT FINANCING LEASES | |||||||||
The components of investment in direct financing leases consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Minimum lease payments receivable | $ | 4,279,317 | $ | 4,291,067 | |||||
Estimated residual values | — | — | |||||||
Less unearned income | (3,747,522 | ) | (3,761,622 | ) | |||||
Investment in direct financing leases | $ | 531,795 | $ | 529,445 | |||||
Properties subject to direct financing leases | 56 | 56 | |||||||
On November 27, 2013, we closed on an aggregate $529 million purchase/leaseback transaction in connection with the acquisition of Ark Holding Company, Inc. (“Ark Holding”) by 4 West Holdings Inc. At closing, we acquired 55 SNFs and 1 ALF previously operated by Ark Holding and leased the facilities back to Ark Holding, pursuant to four 50-year master leases, with rental payments yielding 10.6% per annum over the term of the leases. The purchase/leaseback transaction is being accounted for as a direct financing lease. | |||||||||
The lease agreements allow the tenant the right to purchase the facilities for a bargain purchase price plus closing costs at the end of term. In addition, commencing in the 41st year of each lease, the tenant will have the right to prepay the remainder of its obligations thereunder for an amount equal to the sum of the unamortized portion of the original aggregate $529 million investment plus the net present value of the remaining payments under the lease, and closing costs. In the event the tenant exercises either of these options, we have the right to purchase the properties for fair market value at the time. | |||||||||
The 56 facilities represent 5,624 licensed beds located in 12 states, predominantly in the southeastern United States. The 56 facilities are separated by region and divided amongst four cross-defaulted master leases. The four regions include the Southeast (39 facilities), the Northwest (7 facilities), Texas (9 facilities) and Indiana (1 facility). As of March 31, 2014, the following minimum rents are due under our direct financing lease for the next five years (in thousands): | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||||
$47,000 | $47,000 | $47,128 | $47,778 | $48,972 |
OTHER_INVESTMENTS
OTHER INVESTMENTS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
OTHER INVESTMENTS | ' | ||||||||
NOTE 4 – OTHER INVESTMENTS | |||||||||
A summary of our other investments is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Other investment note due 2015 | $ | 2,268 | $ | 2,318 | |||||
Other investment notes due 2021 - 2023 | 13,504 | 13,427 | |||||||
Other investment note due 2014 | - | 62 | |||||||
$31.5 million other investment note due 2017 | 26,500 | 23,750 | |||||||
$2.5 million other investment note due 2014 | 829 | 546 | |||||||
$6.0 million other investment note due 2013 | 5,439 | 5,439 | |||||||
$1.3 million other investment note due 2017 | 1,300 | 1,300 | |||||||
$1.5 million other investment note due 2014 | 1,456 | 1,456 | |||||||
Notes receivable, gross(1) | 51,296 | 48,298 | |||||||
Allowance for loss on notes receivable | (1,977 | ) | (1,977 | ) | |||||
Notes receivable, net | 49,319 | 46,321 | |||||||
Other | 2,400 | 2,400 | |||||||
Marketable securities | 4,333 | 4,333 | |||||||
Total other investments | $ | 56,052 | $ | 53,054 | |||||
-1 | The majority of these notes bear interest at approximately 10% annually. | ||||||||
$31.5 Million Other Investment Note due 2017 | |||||||||
In February 2014, we amended our five year 10.0% term loan agreement with an existing operator allowing for an additional draw of $3.5 million at 10.5% interest rate. The loan matures in January 2017. | |||||||||
CONCENTRATION_OF_RISK
CONCENTRATION OF RISK | 3 Months Ended |
Mar. 31, 2014 | |
Risks and Uncertainties [Abstract] | ' |
CONCENTRATION OF RISK | ' |
NOTE 5 – CONCENTRATION OF RISK | |
As of March 31, 2014, our portfolio of real estate investments consisted of 548 healthcare facilities, located in 38 states and operated by 49 third-party operators. Our gross investment in these facilities, net of impairments and before reserve for uncollectible loans, totaled approximately $4.0 billion at March 31, 2014, with approximately 99% of our real estate investments related to long-term care facilities. Our portfolio is made up of 475 SNFs, 19 ALFs, 11 specialty facilities, fixed rate mortgages on 40 SNFs and two ALFs, and one SNF that is closed/held-for-sale. At March 31, 2014, we also held miscellaneous investments of approximately $56.1 million, consisting primarily of secured loans to third-party operators of our facilities. | |
At March 31, 2014, we had investments with one operator and/or manager that exceeded 10% of our total investments: New Ark Investment, Inc. (“Ark”) (13%). The three states in which we had our highest concentration of investments were Florida (16%), Ohio (10%) and Indiana (9%) at March 31, 2014. | |
For the three-month period ended March 31, 2014, our revenues from operations totaled $121.0 million, of which approximately $14.1 million were from Ark (12%) and $13.8 million were from Genesis HealthCare (“Genesis”) (11%). No other operator generated more than 10% of our revenues from operations for the three-month period ended March 31, 2014. | |
DIVIDENDS
DIVIDENDS | 3 Months Ended |
Mar. 31, 2014 | |
Dividends [Abstract] | ' |
DIVIDENDS | ' |
NOTE 6 – DIVIDENDS | |
On April 18, 2014, the Board of Directors declared a common stock dividend of $0.50 per share, increasing the quarterly common dividend by $0.01 per share over the prior quarter, to be paid May 15, 2014 to common stockholders of record on April 30, 2014. | |
On January 15, 2014, the Board of Directors declared a common stock dividend of $0.49 per share, increasing the quarterly common dividend by $0.01 per share over the prior quarter, which was paid February 17, 2014 to common stockholders of record on January 31, 2014. | |
TAXES
TAXES | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
TAXES | ' |
NOTE 7 – TAXES | |
So long as we qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code (the “Code”), we generally will not be subject to federal income taxes on the REIT taxable income that we distribute to stockholders, subject to certain exceptions. On a quarterly and annual basis, we test our compliance within the REIT taxation rules to ensure that we were in compliance with the rules. | |
Subject to the limitation under the REIT asset test rules, we are permitted to own up to 100% of the stock of one or more taxable REIT subsidiaries (“TRSs”). Currently, we have one TRS that is taxable as a corporation and pays federal, state and local income tax on its net income at the applicable corporate rates. As of March 31, 2014, the TRS had a net operating loss carry-forward of $1.0 million. The loss carry-forward is fully reserved with a valuation allowance as of March 31, 2014. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||||||||
NOTE 8 – STOCK-BASED COMPENSATION | ||||||||||||||||||||||
The following is a summary of our stock-based compensation expense for the three- month periods ended March 31, 2014 and 2013, respectively: | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Stock-based compensation expense | $ | 2,263 | $ | 1,452 | ||||||||||||||||||
Restricted Stock and Restricted Stock Units | ||||||||||||||||||||||
Restricted stock and restricted stock units (“RSUs”) are subject to forfeiture if the holder’s service to us terminates prior to vesting, subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. Prior to vesting, ownership of the shares/units cannot be transferred. The restricted stock has the same dividend and voting rights as our common stock. RSUs accrue dividend equivalents but have no voting rights. Restricted stock and RSUs are valued at the price of our common stock on the date of grant. We expense the cost of these awards ratably over their vesting period. | ||||||||||||||||||||||
On December 31, 2013, we granted 213,741 RSUs to six employees. The RSUs vest ratably over the three year period ending December 31, 2016, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
On January 1, 2014, we granted 122,137 RSUs to six employees. The RSUs vest on December 31, 2016, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
Performance Restricted Stock Units | ||||||||||||||||||||||
Performance restricted stock units (“PRSUs”) are subject to forfeiture if the performance requirements are not achieved or if the holder’s service to us terminates prior to vesting, subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. The PRSUs awarded in January 2011, January 2013, December 2013 and January 2014 have varying degrees of performance requirements to achieve vesting, and each PRSU award represents the right to a variable number of shares of common stock based on performance and related dividend equivalents based on dividends paid to stockholders during the applicable performance period. The vesting requirements are based on either the (i) total shareholders return (“TSR”) of Omega or (ii) Omega’s TSR relative to other real estate investment trusts in the MSCI U.S. REIT Index. We expense the cost of these awards ratably over their service period. | ||||||||||||||||||||||
Prior to vesting and distribution of shares, ownership of the PRSUs cannot be transferred. The dividends on the PRSUs accumulate and if vested are paid when the shares are distributed to the employee. | ||||||||||||||||||||||
PRSUs (for Performance Periods 2011 through 2013) | ||||||||||||||||||||||
In January 2011, we awarded performance restricted stock units (“PRSUs”) to six employees, including:(i) 279,552 multi-year absolute TSR PRSUs and (ii) 93,183 multi-year relative TSR PRSUs. On January 1, 2013, we awarded to the six employees 124,244 annual TSR PRSUs for the year ended December 31, 2013 (“2013 Annual TSR PRSUs”). | ||||||||||||||||||||||
2013 Annual TSR PRSUs | ||||||||||||||||||||||
The TSR goal for the 2013 Annual TSR PRSUs was achieved at the high level and 124,244 shares vested and were distributed to the employees in January 2014. | ||||||||||||||||||||||
Multi-year TSR PRSUs (for the 2011- 2013 Performance Period) | ||||||||||||||||||||||
The number of shares earned under the multi-year TSR PRSUs depended generally on the level of achievement of TSR for the three-years ending December 31, 2013. In January 2014, the board of directors reviewed the performance and determined the performance targets were met at the high level. The multi-year TSR PRSUs vest 25% on the last day of each calendar quarter in 2014, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
Multi-year Relative TSR PRSUs (for the 2011- 2013 Performance Period) | ||||||||||||||||||||||
The number of shares earned under the multi-year relative TSR PRSUs depended generally on the level of achievement of TSR relative to other real estate investment trusts in the MSCI U.S. REIT Index for the three-years ending December 31, 2013. In January 2014, the board of directors reviewed the performance and determined the performance targets were met at the high level. The multi-year relative TSR PRSUs vest 25% on the last day of each calendar quarter in 2014, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
PRSUs (for 2013- 2016 Performance Periods) | ||||||||||||||||||||||
In December 2013, we awarded six types of PRSUs to six employees: (i) 77,371 PRSUs that vest based on TSR for the one year period starting December 31, 2013 and ending December 31, 2014 (“2014 Transition TSR PRSUs”), (ii) 77,369 PRSUs that vest based on the TSR for the two year period starting December 31, 2013 and ending December 31, 2015 (“2015 Transition TSR PRSUs”), (iii) 115,785 PRSUs that vest based on TSR for the three year period starting December 31, 2013 and ending December 31, 2016 (“2016 Transition TSR PRSUs”), (iv) 77,371 PRSUs that vest based on relative TSR for the one year period starting December 31, 2013 and ending December 31, 2014 (“2014 Transition Relative TSR PRSUs”), (v) 77,368 Transition PRSUs that vest based on relative TSR for the two year period starting December 31, 2013 and ending December 31, 2015 (“2015 Transition Relative TSR PRSUs”), and (vi) 115,781 PRSUs that vest based on relative TSR for the three year period starting December 31, 2013 and ending December 31, 2016 (“2016 Transition Relative TSR PRSUs”). | ||||||||||||||||||||||
2014 Transition TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2014 Transition TSR PRSUs depends generally on the level of achievement of Omega’s TSR for the period beginning December 31, 2013 and ending December 31, 2014. The 2014 Transition TSR PRSUs vest on December 31, 2014, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
2015 Transition TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2015 Transition TSR PRSUs depends generally on the level of achievement of Omega’s TSR for the period beginning December 31, 2013 and ending December 31, 2015. The 2015 Transition TSR PRSUs vest on December 31, 2015, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
2016 Transition TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2016 Transition TSR PRSUs depends generally on the level of achievement of Omega’s TSR for the period beginning December 31, 2013 and ending December 31, 2016. The 2016 Transition TSR PRSUs vest on December 31, 2016, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
2014 Transition Relative TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2014 Transition Relative TSR PRSUs depends generally on the level of achievement of TSR relative to the MSCI U.S. REIT Index for the period beginning December 31, 2013 and ending December 31, 2014. The 2014 Transition Relative TSR PRSUs vest on December 31, 2014, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
2015 Transition Relative TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2015 Transition Relative TSR PRSUs depends generally on the level of achievement of TSR relative to MSCI U.S. REIT Index for the period beginning December 31, 2013 and ending December 31, 2015. The 2015 Transition Relative TSR PRSUs vest on December 31, 2015, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
2016 Transition Relative TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2016 Transition Relative TSR PRSUs depends generally on the level of achievement of TSR relative to MSCI U.S. REIT Index for the period beginning December 31, 2013 and ending December 31, 2016. The 2016 Transition Relative TSR PRSUs vest on December 31, 2016, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
PRSUs (for 2014- 2016 Performance Periods) | ||||||||||||||||||||||
In January 2014, we awarded two types of PRSUs to six employees: (i) 154,584 PRSUs that vest based on TSR for the three year period starting January 1, 2014 and ending December 31, 2016 (“2016 TSR PRSUs”), and (ii) 154,584 PRSUs that vest based on relative TSR for the three year period starting January 1, 2014 and ending December 31, 2016 (“2016 Relative TSR PRSUs”). | ||||||||||||||||||||||
2016 TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2016 TSR PRSUs depends generally on the level of achievement of Omega’s TSR for the period beginning January 1, 2014 and ending December 31, 2016. The 2016 TSR PRSUs vest quarterly in 2017 in equal increments, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
2016 Relative TSR PRSUs | ||||||||||||||||||||||
The number of shares earned under the 2016 Quarterly Relative TSR PRSUs depends generally on the level of achievement of Omega’s TSR relative to MSCI U.S. REIT Index for the period beginning January 1, 2014 and ending December 31, 2016. The 2016 Relative TSR PRSUs vest quarterly in 2017 in equal increments, subject to continued employment on the vesting date and subject to certain exceptions for certain qualifying terminations of employment or a change in control of the Company. | ||||||||||||||||||||||
The following table summarizes our total unrecognized compensation cost as of March 31, 2014 associated with outstanding restricted stock, restricted stock units and PRSU awards to employees: | ||||||||||||||||||||||
Grant | Shares/ | Grant Date Average Fair Value Per | Total Compensation Cost | Weighted Average | Unrecognized Compensation Cost | |||||||||||||||||
Year | Units | Unit/ Share | (in millions) | Period of | (in millions) | |||||||||||||||||
Expense Recognition | ||||||||||||||||||||||
(in months) | ||||||||||||||||||||||
Multi-year TSR PRSUs | 2011 | 279,550 | $ | 11.06 | $ | 3.1 | 44 | $ | 0.2 | |||||||||||||
Multi-year Relative TSR PRSUs | 2011 | 93,183 | 12.26 | 1.1 | 44 | 0.1 | ||||||||||||||||
Restricted stock units | 2013 | 213,741 | 29.8 | 6.4 | 36 | 5.8 | ||||||||||||||||
2014 Transition TSR PRSUs | 2013 | 77,371 | 8.27 | 0.6 | 12 | 0.5 | ||||||||||||||||
2015 Transition TSR PRSUs | 2013 | 77,369 | 7.48 | 0.6 | 24 | 0.5 | ||||||||||||||||
2016 Transition TSR PRSUs | 2013 | 115,785 | 8.67 | 1 | 36 | 0.9 | ||||||||||||||||
2014 Transition Relative TSR PRSUs | 2013 | 77,371 | 11.68 | 0.9 | 12 | 0.7 | ||||||||||||||||
2015 Transition Relative TSR PRSUs | 2013 | 77,368 | 13.06 | 1 | 24 | 0.9 | ||||||||||||||||
2016 Transition Relative TSR PRSUs | 2013 | 115,781 | 14.25 | 1.7 | 36 | 1.5 | ||||||||||||||||
Restricted stock units | 2014 | 122,137 | 29.8 | 3.6 | 36 | 3.3 | ||||||||||||||||
2016 TSR PRSUs | 2014 | 154,584 | 8.67 | 1.4 | 48 | 1.3 | ||||||||||||||||
2016 Relative TSR PRSUs | 2014 | 154,584 | 14.25 | 2.2 | 48 | 2.1 | ||||||||||||||||
Total | 1,558,824 | $ | 15.12 | $ | 23.6 | $ | 17.8 | |||||||||||||||
We used a Monte Carlo model to estimate the fair value for PRSUs granted to the employees. | ||||||||||||||||||||||
Director Restricted Stock Grants | ||||||||||||||||||||||
As of March 31, 2014, we had 30,970 shares of restricted stock outstanding to directors. The directors’ restricted shares are scheduled to vest over the next three years. As of March 31, 2014, the unrecognized compensation cost associated with outstanding director restricted stock grants is approximately $0.4 million. |
FINANCING_ACTIVITIES_AND_BORRO
FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS | ' | ||||||||||||||||
NOTE 9 – FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS | |||||||||||||||||
Secured and Unsecured Borrowings | |||||||||||||||||
The following is a summary of our long-term borrowings: | |||||||||||||||||
Current | March 31, | December 31, | |||||||||||||||
Maturity | Rate | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Secured borrowings: | |||||||||||||||||
HUD mortgages assumed June 2010 (1) | 2040 - 2045 | 4.85 | % | $ | 128,068 | $ | 128,641 | ||||||||||
HUD mortgages assumed October 2011 (1) | 2036 - 2040 | 4.87 | % | 30,929 | 31,145 | ||||||||||||
HUD mortgages assumed December 2011(1) | 2044 | 3.06 | % | 58,301 | 58,592 | ||||||||||||
HUD mortgages assumed December 2012(1) | 2031 - 2045 | 5.5 | % | 79,718 | 80,153 | ||||||||||||
Total secured borrowings | 297,016 | 298,531 | |||||||||||||||
Unsecured borrowings: | |||||||||||||||||
Revolving line of credit | 2016 | 1.95 | % | $ | - | $ | 326,000 | ||||||||||
Term loan | 2017 | 1.91 | % | 200,000 | 200,000 | ||||||||||||
200,000 | 526,000 | ||||||||||||||||
2020 notes | 2020 | 7.5 | % | 200,000 | 200,000 | ||||||||||||
2022 notes | 2022 | 6.75 | % | 575,000 | 575,000 | ||||||||||||
2024 notes | 2024 | 5.875 | % | 400,000 | 400,000 | ||||||||||||
2024 notes | 2024 | 4.95 | % | 400,000 | — | ||||||||||||
Subordinated debt | 2021 | 9 | % | 20,855 | 20,892 | ||||||||||||
1,595,855 | 1,195,892 | ||||||||||||||||
Premium (discount) - net | (1,749 | ) | 3,995 | ||||||||||||||
Total unsecured borrowings | 1,794,106 | 1,725,887 | |||||||||||||||
Totals – net | $ | 2,091,122 | $ | 2,024,418 | |||||||||||||
-1 | Reflects the weighted average annual interest rate on the mortgages. | ||||||||||||||||
Certain of our other secured and unsecured borrowings are subject to customary affirmative and negative covenants, including financial covenants. As of December 31, 2013 and March 31, 2014, we were in compliance with all affirmative and negative covenants, including financial covenants, for our secured and unsecured borrowings. | |||||||||||||||||
Bank Credit Agreements | |||||||||||||||||
We have a $700 million unsecured credit facility that we entered into on December 6, 2012, comprised of a $500 million unsecured revolving credit facility (the “2012 Revolving Credit Facility”) and a $200 million unsecured term loan (the “2012 Term Loan Facility” and, together with the 2012 Revolving Credit Facility, collectively, the “2012 Credit Facilities”). | |||||||||||||||||
The 2012 Credit Facilities include an “accordion feature” that permits us to expand our borrowing capacity thereunder by a combined $300 million, to a total of $1 billion. | |||||||||||||||||
At March 31, 2014, we had no outstanding amount under the 2012 Revolving Credit Facility, and no letters of credit outstanding, leaving availability of $500 million. The 2012 Revolving Credit Facility matures on December 6, 2016, with an option by us to extend the maturity one additional year. The 2012 Revolving Credit Facility is priced at LIBOR plus an applicable percentage (beginning at 150 basis points, with a range of 100 to 190 basis points) based on our ratings from Standard & Poor’s, Moody’s and/or Fitch Ratings, plus a facility fee based on the same ratings (initially 30 basis points, with a range of 15 to 45 basis points). | |||||||||||||||||
At March 31, 2014, the full $200 million was outstanding under the 2012 Term Loan Facility. The 2012 Term Loan Facility is also priced at LIBOR plus an applicable percentage (beginning at 175 basis points, with a range of 110 to 230 basis points) based our ratings from Standard & Poor’s, Moody’s and/or Fitch Ratings. The 2012 Term Loan Facility matures on December 6, 2017. | |||||||||||||||||
$200 Million Term Loan | |||||||||||||||||
On December 27, 2013, we entered into a new $200 million senior unsecured, deferred draw, term loan facility (the “2013 Term Loan Facility”) that was scheduled to mature on February 29, 2016. | |||||||||||||||||
The 2013 Term Loan Facility was priced at LIBOR plus an applicable percentage (beginning at 175 basis points, with a range of 110 to 230 basis points) based on the Company’s ratings from Standard & Poor’s, Moody’s and/or Fitch Ratings. | |||||||||||||||||
In January 2014, we drew all $200 million under the 2013 Term Loan Facility and used the proceeds to (i) fund a new mortgage investment and (ii) repay outstanding borrowings under the 2012 Revolving Credit Facility. In March 2014, we paid off and terminated the 2013 Term Loan Facility with proceeds from the sale of our 4.95% Senior Notes due 2024 (see below). In addition, we recorded a non-cash charge of approximately $2.0 million relating to the write-off of deferred financing costs associated with the termination of the 2013 Term Loan Facility. | |||||||||||||||||
$400 Million Senior Notes | |||||||||||||||||
On March 6, 2014, we sold $400 million aggregate principal amount of our 4.95% Senior Notes due 2024. These notes were sold at an issue price of 98.580% of the principal amount of the notes, before the initial purchasers’ discount resulting in gross proceeds of approximately $394.3 million. We used the net proceeds of the offering to repay in full our $200 million 2013 Term Loan Facility, and a portion of our indebtedness outstanding under our 2012 Revolving Credit Facility. | |||||||||||||||||
$250 Million Equity Shelf Program | |||||||||||||||||
On March 18, 2013, we entered into separate Equity Distribution Agreements (collectively, the “2013 Equity Shelf Agreements”) to sell shares of our common stock having an aggregate gross sales price of up to $250 million (the “2013 Equity Shelf Program”) with several financial institutions, each as a sales agent and/or principal (collectively, the “Managers”). | |||||||||||||||||
For the three-month period ended March 31, 2014, we issued approximately 0.9 million shares under the 2013 Equity Shelf Program, at an average price of $32.94 per share, generating gross proceeds of approximately $28.5 million, before $0.6 million of commissions. | |||||||||||||||||
Dividend Reinvestment and Common Stock Purchase Plan | |||||||||||||||||
For the three-month period ended March 31, 2014, approximately 1.0 million shares of our common stock at an average price of $31.77 per share were issued through our Dividend Reinvestment and Common Stock Purchase Program for gross proceeds of approximately $31.5 million. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FINANCIAL INSTRUMENTS | ' | ||||||||||||||||
NOTE 10 – FINANCIAL INSTRUMENTS | |||||||||||||||||
At March 31, 2014 and December 31, 2013, the carrying amounts and fair values of our financial instruments were as follows: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Assets: | (in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 20,374 | $ | 20,374 | $ | 2,616 | $ | 2,616 | |||||||||
Restricted cash | 28,817 | 28,817 | 31,759 | 31,759 | |||||||||||||
Investment in direct financing leases | 531,795 | 531,795 | 529,445 | 529,445 | |||||||||||||
Mortgage notes receivable – net | 354,497 | 379,719 | 241,515 | 240,482 | |||||||||||||
Other investments – net | 56,052 | 55,664 | 53,054 | 50,124 | |||||||||||||
Totals | $ | 991,535 | $ | 1,016,369 | $ | 858,389 | $ | 854,426 | |||||||||
Liabilities: | |||||||||||||||||
Revolving line of credit | $ | — | $ | — | $ | 326,000 | $ | 326,000 | |||||||||
Term loan | 200,000 | 200,000 | 200,000 | 200,000 | |||||||||||||
7.50% notes due 2020 – net | 197,976 | 260,166 | 197,890 | 256,852 | |||||||||||||
6.75% notes due 2022 – net | 580,931 | 713,689 | 581,105 | 735,687 | |||||||||||||
5.875% notes due 2024 – net | 400,000 | 430,052 | 400,000 | 411,266 | |||||||||||||
4.95% notes due 2024 – net | 394,344 | 394,344 | — | — | |||||||||||||
HUD debt | 297,016 | 299,641 | 298,531 | 287,718 | |||||||||||||
Subordinated debt | 20,855 | 27,880 | 20,892 | 28,849 | |||||||||||||
Totals | $ | 2,091,122 | $ | 2,325,772 | $ | 2,024,418 | $ | 2,246,372 | |||||||||
Fair value estimates are subjective in nature and are dependent on a number of important assumptions, including estimates of future cash flows, risks, discount rates and relevant comparable market information associated with each financial instrument (see Note 2 – Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2013). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. | |||||||||||||||||
The following methods and assumptions were used in estimating fair value disclosures for financial instruments. | |||||||||||||||||
● | Cash and cash equivalents and restricted cash: The carrying amount of cash and cash equivalents and restricted cash reported in the balance sheet approximates fair value because of the short maturity of these instruments (i.e., less than 90 days) (Level 1). | ||||||||||||||||
● | Mortgage notes receivable: The fair values of the mortgage notes receivables are estimated using a discounted cash flow analysis, using interest rates being offered for similar loans to borrowers with similar credit ratings (Level 3). | ||||||||||||||||
● | Direct financing leases: The fair values of the direct financing receivables are estimated using a discounted cash flow analysis, using interest rates being offered for similar loans to borrowers with similar credit ratings (Level 3). | ||||||||||||||||
● | Other investments: Other investments are primarily comprised of: (i) notes receivable and (ii) an investment in a redeemable non-convertible preferred security of an unconsolidated business accounted for using the cost method of accounting. The fair values of notes receivable are estimated using a discounted cash flow analysis, using interest rates being offered for similar loans to borrowers with similar credit ratings (Level 3). The fair value of the investment in the unconsolidated business is estimated using quoted market value and considers the terms of the underlying arrangement (Level 3). | ||||||||||||||||
● | Revolving line of credit and term loan: The fair value of our borrowings under variable rate agreements are estimated using an expected present value technique based on expected cash flows discounted using the current market rates (Level 3). | ||||||||||||||||
● | Senior notes and other long-term borrowings: The fair value of our borrowings under fixed rate agreements are estimated based on open market trading activity provided by a third party (Level 2). |
LITIGATION
LITIGATION | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
LITIGATION | ' |
NOTE 11 – LITIGATION | |
We are subject to various legal proceedings, claims and other actions arising out of the normal course of business. While any legal proceeding or claim has an element of uncertainty, management believes that the outcome of each lawsuit, claim or legal proceeding that is pending or threatened, or all of them combined, will not have a material adverse effect on our consolidated financial position or results of operations. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Income Available To Common Per Share | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 12 – EARNINGS PER SHARE | |||||||||
The computation of basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the relevant period. Diluted EPS is computed using the treasury stock method, which is net income available to common stockholders divided by the total weighted-average number of common outstanding shares plus the effect of dilutive common equivalent shares during the respective period. Dilutive common shares reflect the assumed issuance of additional common shares pursuant to certain of our share-based compensation plans, including stock options, restricted stock and performance restricted stock units. | |||||||||
The following tables set forth the computation of basic and diluted earnings per share: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts) | |||||||||
Numerator: | |||||||||
Net income | $ | 55,829 | $ | 38,120 | |||||
Numerator for net income available to common per share - basic and diluted | $ | 55,829 | $ | 38,120 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share | 124,459 | 112,782 | |||||||
Effect of dilutive securities: | |||||||||
Common stock equivalents | 363 | 740 | |||||||
Denominator for diluted earnings per share | 124,822 | 113,522 | |||||||
Earnings per share – basic: | |||||||||
Net income – basic | $ | 0.45 | $ | 0.34 | |||||
Earnings per share – diluted: | |||||||||
Net income – diluted | $ | 0.45 | $ | 0.34 | |||||
CONSOLIDATING_FINANCIAL_STATEM
CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||
CONSOLIDATING FINANCIAL STATEMENTS | ' | ||||||||||||||||
NOTE 13 – CONSOLIDATING FINANCIAL STATEMENTS | |||||||||||||||||
As of March 31, 2014, we had outstanding (i) $200 million 7.5% Senior Notes due 2020, (ii) $575 million 6.75% Senior Notes due 2022, (iii) $400 million 5.875% Senior Notes due 2024 and (iv) $400 million 4.95% Senior Notes due 2024, which we collectively refer to as the Senior Notes. The Senior Notes are fully and unconditionally guaranteed, jointly and severally, by each of our subsidiaries that guarantee other indebtedness of Omega or any of the subsidiary guarantors. All of our subsidiaries that guarantee the Senior Notes also guarantee the 2012 Credit Facilities. Any subsidiary that we properly designate as an “unrestricted subsidiary” under the indentures governing the Senior Notes will not provide guarantees of the Senior Notes or the 2012 Credit Facilities. | |||||||||||||||||
As of and prior to March 31, 2010, the non-guarantor subsidiaries were minor and insignificant. On June 29, 2010, we designated as “unrestricted subsidiaries” the 39 subsidiaries we acquired from CapitalSource subject to HUD indebtedness, of which 12 subsidiaries were re-designated as “restricted subsidiaries” and subsidiary guarantors in July 2013 due to the retirement of the HUD related debt on 11 facilities. During the fourth quarter of 2011, we designated as “unrestricted subsidiaries” 20 subsidiaries we acquired subject to HUD indebtedness, of which six subsidiaries were re-designated as “restricted subsidiaries” and subsidiary guarantors in July 2012 due to the retirement of the HUD related mortgages on five facilities. During the fourth quarter of 2012, we designated as “unrestricted subsidiaries” eight subsidiaries we acquired subject to HUD indebtedness. The following summarized condensed consolidating financial information reflects these changes. | |||||||||||||||||
For the three months ended March 31, 2014 and 2013, the operating cash flow of the non-guarantor subsidiaries approximated net income of the non-guarantor subsidiaries, adjusted for depreciation and amortization expense and rent recorded on straight-line basis. On March 26, 2013, the non-guarantor subsidiaries refinanced existing HUD mortgage debt on 12 properties in Arkansas for approximately $59.4 million. The refinanced amount included $58.7 million related to retiring the old HUD debt and $0.7 million of closing costs that were added to the new (refinanced) HUD debt. | |||||||||||||||||
For the three months ended March 31, 2014 and 2013, the non-guarantor subsidiaries did not engage in investing or financing activities other than the principal payment of $1.2 million and $1.1 million, respectively for the HUD mortgages on the facilities owned by the non-guarantor subsidiaries. All of the subsidiary guarantors of our outstanding Senior Notes and 2012 Credit Facilities, and all of our non-guarantor subsidiaries, are 100% owned by Omega. | |||||||||||||||||
The following summarized condensed consolidating financial information segregates the financial information of the non-guarantor subsidiaries from the financial information of Omega Healthcare Investors, Inc. and the subsidiary guarantors under the Senior Notes. The results and financial position of acquired entities are included from the dates of their respective acquisitions. | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Issuer & | Non-Guarantor | Elimination | Consolidated | ||||||||||||||
Subsidiary | Subsidiaries | Company | |||||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Real estate properties | |||||||||||||||||
Land and buildings | $ | 2,649,785 | $ | 457,500 | $ | - | $ | 3,107,285 | |||||||||
Less accumulated depreciation | (679,994 | ) | (58,714 | ) | - | (738,708 | ) | ||||||||||
Real estate properties – net | 1,969,791 | 398,786 | - | 2,368,577 | |||||||||||||
Investment in direct financing leases | 531,795 | - | - | 531,795 | |||||||||||||
Mortgage notes receivable – net | 354,497 | - | - | 354,497 | |||||||||||||
2,856,083 | 398,786 | - | 3,254,869 | ||||||||||||||
Other investments – net | 56,052 | - | - | 56,052 | |||||||||||||
2,912,135 | 398,786 | - | 3,310,921 | ||||||||||||||
Assets held for sale – net | 820 | - | - | 820 | |||||||||||||
Total investments | 2,912,955 | 398,786 | - | 3,311,741 | |||||||||||||
Cash and cash equivalents | 20,374 | - | - | 20,374 | |||||||||||||
Restricted cash | 6,932 | 21,885 | - | 28,817 | |||||||||||||
Accounts receivable – net | 145,061 | 7,802 | - | 152,863 | |||||||||||||
Investment in affiliates | 103,807 | - | (103,807 | ) | - | ||||||||||||
Other assets | 37,681 | 27,449 | - | 65,130 | |||||||||||||
Total assets | $ | 3,226,810 | $ | 455,922 | $ | (103,807 | ) | $ | 3,578,925 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Revolving line of credit | $ | - | $ | - | $ | - | $ | - | |||||||||
Term loan | 200,000 | - | - | 200,000 | |||||||||||||
Secured borrowings | - | 297,016 | - | 297,016 | |||||||||||||
Unsecured borrowings – net | 1,573,251 | 20,855 | - | 1,594,106 | |||||||||||||
Accrued expenses and other liabilities | 98,212 | 34,244 | - | 132,456 | |||||||||||||
Intercompany payable | - | 74,617 | (74,617 | ) | - | ||||||||||||
Total liabilities | 1,871,463 | 426,732 | (74,617 | ) | 2,223,578 | ||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock | 12,542 | - | - | 12,542 | |||||||||||||
Common stock – additional paid-in capital | 2,059,085 | - | - | 2,059,085 | |||||||||||||
Cumulative net earnings | 982,478 | 29,190 | (29,190 | ) | 982,478 | ||||||||||||
Cumulative dividends paid | (1,698,758 | ) | - | - | (1,698,758 | ) | |||||||||||
Total stockholders’ equity | 1,355,347 | 29,190 | (29,190 | ) | 1,355,347 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 3,226,810 | $ | 455,922 | (103,807 | ) | $ | 3,578,925 | |||||||||
31-Dec-13 | |||||||||||||||||
Non – Guarantor | Elimination | Consolidated | |||||||||||||||
Issuer & | Subsidiaries | Company | |||||||||||||||
Subsidiary | |||||||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Real estate properties | |||||||||||||||||
Land and buildings | $ | 2,642,047 | $ | 457,500 | $ | — | $ | 3,099,547 | |||||||||
Less accumulated depreciation | (653,858 | ) | (53,552 | ) | — | (707,410 | ) | ||||||||||
Real estate properties – net | 1,988,189 | 403,948 | — | 2,392,137 | |||||||||||||
Investment in direct financing leases | 529,445 | — | — | 529,445 | |||||||||||||
Mortgage notes receivable – net | 241,515 | — | — | 241,515 | |||||||||||||
2,759,149 | 403,948 | — | 3,163,097 | ||||||||||||||
Other investments – net | 53,054 | — | — | 53,054 | |||||||||||||
2,812,203 | 403,948 | — | 3,216,151 | ||||||||||||||
Assets held for sale – net | 1,356 | — | — | 1,356 | |||||||||||||
Total investments | 2,813,559 | 403,948 | — | 3,217,507 | |||||||||||||
Cash and cash equivalents | 2,616 | — | — | 2,616 | |||||||||||||
Restricted cash | 6,827 | 24,932 | — | 31,759 | |||||||||||||
Accounts receivable – net | 140,331 | 7,173 | — | 147,504 | |||||||||||||
Investment in affiliates | 108,707 | — | (108,707 | ) | — | ||||||||||||
Other assets | 36,723 | 26,107 | — | 62,830 | |||||||||||||
Total assets | $ | 3,108,763 | $ | 462,160 | $ | (108,707 | ) | $ | 3,462,216 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Revolving line of credit | $ | 326,000 | $ | — | $ | — | $ | 326,000 | |||||||||
Term loan | 200,000 | — | — | 200,000 | |||||||||||||
Secured borrowings | — | 298,531 | — | 298,531 | |||||||||||||
Unsecured borrowings – net | 1,178,995 | 20,892 | — | 1,199,887 | |||||||||||||
Accrued expenses and other liabilities | 103,665 | 34,030 | — | 137,695 | |||||||||||||
Intercompany payable | — | 83,065 | (83,065 | ) | — | ||||||||||||
Total liabilities | 1,808,660 | 436,518 | (83,065 | ) | 2,162,113 | ||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock | 12,353 | — | — | 12,353 | |||||||||||||
Common stock – additional paid-in-capital | 1,998,169 | — | — | 1,998,169 | |||||||||||||
Cumulative net earnings | 926,649 | 25,642 | (25,642 | ) | 926,649 | ||||||||||||
Cumulative dividends paid | (1,637,068 | ) | — | — | (1,637,068 | ) | |||||||||||
Total stockholders’ equity | 1,300,103 | 25,642 | (25,642 | ) | 1,300,103 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 3,108,763 | $ | 462,160 | $ | (108,707 | ) | $ | 3,462,216 | ||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Issuer & | Non – | Consolidated | |||||||||||||||
Subsidiary | Guarantor | ||||||||||||||||
Guarantors | Subsidiaries | Elimination | |||||||||||||||
Revenue | |||||||||||||||||
Rental income | $ | 83,366 | $ | 12,552 | $ | - | $ | 95,918 | |||||||||
Income from direct financing leases | 14,084 | - | - | 14,084 | |||||||||||||
Mortgage interest income | 9,326 | - | - | 9,326 | |||||||||||||
Other investment income – net | 1,421 | - | - | 1,421 | |||||||||||||
Miscellaneous | 252 | - | - | 252 | |||||||||||||
Total operating revenues | 108,449 | 12,552 | - | 121,001 | |||||||||||||
Expenses | |||||||||||||||||
Depreciation and amortization | 26,282 | 5,162 | - | 31,444 | |||||||||||||
General and administrative | 6,406 | 91 | - | 6,497 | |||||||||||||
Acquisition costs | 95 | - | - | 95 | |||||||||||||
Provision for uncollectible mortgages, notes and accounts receivable | (16 | ) | - | - | (16 | ) | |||||||||||
Total operating expenses | 32,767 | 5,253 | - | 38,020 | |||||||||||||
Income before other income and expense | 75,682 | 7,299 | - | 82,981 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | 1 | 7 | - | 8 | |||||||||||||
Interest expense | (23,328 | ) | (3,753 | ) | - | (27,081 | ) | ||||||||||
Interest – amortization of deferred financing costs | (917 | ) | (5 | ) | - | (922 | ) | ||||||||||
Interest – refinancing costs | (2,040 | ) | - | - | (2,040 | ) | |||||||||||
Equity in earnings | 3,548 | - | (3,548 | ) | - | ||||||||||||
Total other expense | (22,736 | ) | (3,751 | ) | (3,548 | ) | (30,035 | ) | |||||||||
Income before gain on assets sold | 52,946 | 3,548 | (3,548 | ) | 52,946 | ||||||||||||
Gain on assets sold – net | 2,883 | - | - | 2,883 | |||||||||||||
Net income (loss) available to common stockholders | $ | 55,829 | $ | 3,548 | $ | (3,548 | ) | $ | 55,829 | ||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
Issuer & | Non – | Elimination | Consolidated | ||||||||||||||
Subsidiary | Guarantor | Company | |||||||||||||||
Guarantors | Subsidiaries | ||||||||||||||||
Revenue | |||||||||||||||||
Rental income | $ | 80,502 | $ | 12,607 | $ | - | $ | 93,109 | |||||||||
Mortgage interest income | 7,346 | - | - | 7,346 | |||||||||||||
Other investment income – net | 1,306 | - | - | 1,306 | |||||||||||||
Total operating revenues | 89,154 | 12,607 | - | 101,761 | |||||||||||||
Expenses | |||||||||||||||||
Depreciation and amortization | 26,796 | 5,163 | - | 31,959 | |||||||||||||
General and administrative | 5,107 | 90 | - | 5,197 | |||||||||||||
Acquisition costs | 134 | - | - | 134 | |||||||||||||
Total operating expenses | 32,037 | 5,253 | - | 37,290 | |||||||||||||
Income before other income and expense | 57,117 | 7,354 | - | 64,471 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | (4 | ) | 7 | - | 3 | ||||||||||||
Interest expense | (21,490 | ) | (4,182 | ) | - | (25,672 | ) | ||||||||||
Interest – amortization of deferred financing costs | (682 | ) | - | - | (682 | ) | |||||||||||
Equity in earnings | 3,179 | - | (3,179 | ) | - | ||||||||||||
Total other expense | (18,997 | ) | (4,175 | ) | (3,179 | ) | (26,351 | ) | |||||||||
Net income available to common stockholders | $ | 38,120 | $ | 3,179 | $ | (3,179 | ) | $ | 38,120 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 14 – SUBSEQUENT EVENTS | |
Over the past few years the state of Indiana has been converting MR/DD (mentally retarded/developmentally disability) patients from institutional facilities to group homes. In May 2014, our MR/DD facility was effectively closed. As a result of the closure, we expect to record an impairment reserve of between $1.0 million and $1.5 million in the second quarter of 2014. In addition, we expected to re-classify the facility to held-for-sale during the second quarter of 2014. |
BASIS_OF_PRESENTATION_AND_SIGN1
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | ||||||||
Basis of Presentation | ' | ||||||||
Basis of Presentation | |||||||||
The accompanying unaudited consolidated financial statements for Omega have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods reported herein are not necessarily indicative of results to be expected for the full year. We have evaluated all subsequent events through the date of the filing of this Form 10-Q. These unaudited consolidated financial statements should be read in conjunction with the financial statements and the footnotes thereto included in our latest Annual Report on Form 10-K. | |||||||||
Our consolidated financial statements include the accounts of (i) Omega and (ii) all direct and indirect wholly owned subsidiaries of Omega. All inter-company accounts and transactions have been eliminated in consolidation of the financial statements. | |||||||||
Recent Accounting Pronouncements | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
Discontinued Operations | |||||||||
In April 2014, we adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update No (ASU 2014-08), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 on Discontinued Operations changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. Under the current US GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement component after the disposal. The new guidance eliminates these criteria. | |||||||||
The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within that year. Early adoption is permitted, and calendar year-end companies may early adopt the guidance in the first quarter of 2014, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issue. We have chosen to adopt the guidance effective January 1, 2014 and determined that the adoption had no impact on our consolidated financial statements. | |||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
Accounts receivable includes: contractual receivables, effective yield interest receivables, straight-line rent receivables and lease inducements, net of an estimated provision for losses related to uncollectible and disputed accounts. Contractual receivables relate to the amounts currently owed to us under the terms of our lease and loan agreements. Effective yield interest receivables relate to the difference between the interest income recognized on an effective yield basis over the term of the loan agreement and the interest currently due to us according to the contractual agreement. Straight-line receivables relate to the difference between the rental revenue recognized on a straight-line basis and the amounts currently due to us according to the contractual agreement. Lease inducements result from value provided by us to the lessee at the inception or renewal of the lease and will be amortized as a reduction of rental revenue over the non cancellable lease term. | |||||||||
On a quarterly basis, we review our accounts receivable to determine their collectability. The determination of collectability of these assets requires significant judgment and is affected by several factors relating to the credit quality of our operators that we regularly monitor, including (i) payment history, (ii) the age of the contractual receivables, (iii) the current economic conditions and reimbursement environment, (iv) the ability of the tenant to perform under the terms of their lease and/or contractual loan agreements and (v) the value of the underlying collateral of the agreement. If we determine collectability of any of our contractual receivables is at risk, we estimate the potential uncollectible amounts and provide an allowance. In the case of a lease recognized on a straight-line basis or existence of lease inducements, we generally provide an allowance for straight-line accounts receivable and/or the lease inducements when certain conditions or indicators of adverse collectability are present. | |||||||||
A summary of our net receivables by type is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contractual receivables | $ | 3,352 | $ | 2,941 | |||||
Effective yield interest receivables | 5,653 | 5,333 | |||||||
Straight-line receivables | 128,810 | 123,486 | |||||||
Lease inducements | 15,513 | 16,228 | |||||||
Allowance | (465 | ) | (484 | ) | |||||
Accounts receivable – net | $ | 152,863 | $ | 147,504 | |||||
We continuously evaluate the payment history and financial strength of our operators and have historically established allowance reserves for straight-line rent adjustments for operators that do not meet our requirements. We consider factors such as payment history and the operator’s financial condition as well as current and future anticipated operating trends when evaluating whether to establish allowance reserves. | |||||||||
BASIS_OF_PRESENTATION_AND_SIGN2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of summary of net receivables | ' | ||||||||
A summary of our net receivables by type is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contractual receivables | $ | 3,352 | $ | 2,941 | |||||
Effective yield interest receivables | 5,653 | 5,333 | |||||||
Straight-line receivables | 128,810 | 123,486 | |||||||
Lease inducements | 15,513 | 16,228 | |||||||
Allowance | (465 | ) | (484 | ) | |||||
Accounts receivable – net | $ | 152,863 | $ | 147,504 |
PROPERTIES_AND_INVESTMENTS_Tab
PROPERTIES AND INVESTMENTS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Schedule of unaudited pro forma results of business acquisition | ' | ||||||||
The facilities acquired in 2014 and 2013 are included in our results of operations from the date of acquisition. The following unaudited pro forma results of operations reflect the impact of the transactions as if they occurred on January 1, 2013. For a list of the 2013 transactions, refer to Note 3 – Properties in our 2013 Form 10-K. In the opinion of management, all significant necessary adjustments to reflect the effect of the acquisitions have been made. The following pro forma information is not indicative of future operations. | |||||||||
Pro Forma | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts, unaudited) | |||||||||
Revenues | $ | 121,088 | $ | 102,666 | |||||
Net income available to common stockholders | 55,890 | 38,493 | |||||||
Earnings per share – diluted: | |||||||||
Net income available to common stockholders – as reported | $ | 0.45 | $ | 0.34 | |||||
Net income available to common stockholders – pro forma | 0.45 | 0.34 |
DIRECT_FINANCING_LEASES_Tables
DIRECT FINANCING LEASES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Leases, Capital [Abstract] | ' | ||||||||
Schedule of components of investment in direct financing leases | ' | ||||||||
The components of investment in direct financing leases consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Minimum lease payments receivable | $ | 4,279,317 | $ | 4,291,067 | |||||
Estimated residual values | — | — | |||||||
Less unearned income | (3,747,522 | ) | (3,761,622 | ) | |||||
Investment in direct financing leases | $ | 531,795 | $ | 529,445 | |||||
Properties subject to direct financing leases | 56 | 56 | |||||||
Schedule of minimum rents are due under our direct financing lease for the next five years | ' | ||||||||
As of March 31, 2014, the following minimum rents are due under our direct financing lease for the next five years (in thousands): | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||||
$47,000 | $47,000 | $47,128 | $47,778 | $48,972 |
OTHER_INVESTMENTS_Tables
OTHER INVESTMENTS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of other investments | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Other investment note due 2015 | $ | 2,268 | $ | 2,318 | |||||
Other investment notes due 2021 - 2023 | 13,504 | 13,427 | |||||||
Other investment note due 2014 | - | 62 | |||||||
$31.5 million other investment note due 2017 | 26,500 | 23,750 | |||||||
$2.5 million other investment note due 2014 | 829 | 546 | |||||||
$6.0 million other investment note due 2013 | 5,439 | 5,439 | |||||||
$1.3 million other investment note due 2017 | 1,300 | 1,300 | |||||||
$1.5 million other investment note due 2014 | 1,456 | 1,456 | |||||||
Notes receivable, gross(1) | 51,296 | 48,298 | |||||||
Allowance for loss on notes receivable | (1,977 | ) | (1,977 | ) | |||||
Notes receivable, net | 49,319 | 46,321 | |||||||
Other | 2,400 | 2,400 | |||||||
Marketable securities | 4,333 | 4,333 | |||||||
Total other investments | $ | 56,052 | $ | 53,054 | |||||
-1 | The majority of these notes bear interest at approximately 10% annually. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||||||||||||
Schedule of stock-based compensation expense | ' | |||||||||||||||||||||
The following is a summary of our stock-based compensation expense for the three- month periods ended March 31, 2014 and 2013, respectively: | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Stock-based compensation expense | $ | 2,263 | $ | 1,452 | ||||||||||||||||||
Schedule of unrecognized compensation cost associated with outstanding restricted stock and PRSU awards | ' | |||||||||||||||||||||
The following table summarizes our total unrecognized compensation cost as of March 31, 2014 associated with outstanding restricted stock, restricted stock units and PRSU awards to employees: | ||||||||||||||||||||||
Grant | Shares/ | Grant Date Average Fair Value Per | Total Compensation Cost | Weighted Average | Unrecognized Compensation Cost | |||||||||||||||||
Year | Units | Unit/ Share | (in millions) | Period of | (in millions) | |||||||||||||||||
Expense Recognition | ||||||||||||||||||||||
(in months) | ||||||||||||||||||||||
Multi-year TSR PRSUs | 2011 | 279,550 | $ | 11.06 | $ | 3.1 | 44 | $ | 0.2 | |||||||||||||
Multi-year Relative TSR PRSUs | 2011 | 93,183 | 12.26 | 1.1 | 44 | 0.1 | ||||||||||||||||
Restricted stock units | 2013 | 213,741 | 29.8 | 6.4 | 36 | 5.8 | ||||||||||||||||
2014 Transition TSR PRSUs | 2013 | 77,371 | 8.27 | 0.6 | 12 | 0.5 | ||||||||||||||||
2015 Transition TSR PRSUs | 2013 | 77,369 | 7.48 | 0.6 | 24 | 0.5 | ||||||||||||||||
2016 Transition TSR PRSUs | 2013 | 115,785 | 8.67 | 1 | 36 | 0.9 | ||||||||||||||||
2014 Transition Relative TSR PRSUs | 2013 | 77,371 | 11.68 | 0.9 | 12 | 0.7 | ||||||||||||||||
2015 Transition Relative TSR PRSUs | 2013 | 77,368 | 13.06 | 1 | 24 | 0.9 | ||||||||||||||||
2016 Transition Relative TSR PRSUs | 2013 | 115,781 | 14.25 | 1.7 | 36 | 1.5 | ||||||||||||||||
Restricted stock units | 2014 | 122,137 | 29.8 | 3.6 | 36 | 3.3 | ||||||||||||||||
2016 TSR PRSUs | 2014 | 154,584 | 8.67 | 1.4 | 48 | 1.3 | ||||||||||||||||
2016 Relative TSR PRSUs | 2014 | 154,584 | 14.25 | 2.2 | 48 | 2.1 | ||||||||||||||||
Total | 1,558,824 | $ | 15.12 | $ | 23.6 | $ | 17.8 |
FINANCING_ACTIVITIES_AND_BORRO1
FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of long-term borrowings | ' | ||||||||||||||||
The following is a summary of our long-term borrowings: | |||||||||||||||||
Current | March 31, | December 31, | |||||||||||||||
Maturity | Rate | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Secured borrowings: | |||||||||||||||||
HUD mortgages assumed June 2010 (1) | 2040 - 2045 | 4.85 | % | $ | 128,068 | $ | 128,641 | ||||||||||
HUD mortgages assumed October 2011 (1) | 2036 - 2040 | 4.87 | % | 30,929 | 31,145 | ||||||||||||
HUD mortgages assumed December 2011(1) | 2044 | 3.06 | % | 58,301 | 58,592 | ||||||||||||
HUD mortgages assumed December 2012(1) | 2031 - 2045 | 5.5 | % | 79,718 | 80,153 | ||||||||||||
Total secured borrowings | 297,016 | 298,531 | |||||||||||||||
Unsecured borrowings: | |||||||||||||||||
Revolving line of credit | 2016 | 1.95 | % | $ | - | $ | 326,000 | ||||||||||
Term loan | 2017 | 1.91 | % | 200,000 | 200,000 | ||||||||||||
200,000 | 526,000 | ||||||||||||||||
2020 notes | 2020 | 7.5 | % | 200,000 | 200,000 | ||||||||||||
2022 notes | 2022 | 6.75 | % | 575,000 | 575,000 | ||||||||||||
2024 notes | 2024 | 5.875 | % | 400,000 | 400,000 | ||||||||||||
2024 notes | 2024 | 4.95 | % | 400,000 | — | ||||||||||||
Subordinated debt | 2021 | 9 | % | 20,855 | 20,892 | ||||||||||||
1,595,855 | 1,195,892 | ||||||||||||||||
Premium (discount) - net | (1,749 | ) | 3,995 | ||||||||||||||
Total unsecured borrowings | 1,794,106 | 1,725,887 | |||||||||||||||
Totals – net | $ | 2,091,122 | $ | 2,024,418 | |||||||||||||
-1 | Reflects the weighted average annual interest rate on the mortgages. | ||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of the carrying amounts and fair values of financial instruments | ' | ||||||||||||||||
At March 31, 2014 and December 31, 2013, the carrying amounts and fair values of our financial instruments were as follows: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Assets: | (in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 20,374 | $ | 20,374 | $ | 2,616 | $ | 2,616 | |||||||||
Restricted cash | 28,817 | 28,817 | 31,759 | 31,759 | |||||||||||||
Investment in direct financing leases | 531,795 | 531,795 | 529,445 | 529,445 | |||||||||||||
Mortgage notes receivable – net | 354,497 | 379,719 | 241,515 | 240,482 | |||||||||||||
Other investments – net | 56,052 | 55,664 | 53,054 | 50,124 | |||||||||||||
Totals | $ | 991,535 | $ | 1,016,369 | $ | 858,389 | $ | 854,426 | |||||||||
Liabilities: | |||||||||||||||||
Revolving line of credit | $ | — | $ | — | $ | 326,000 | $ | 326,000 | |||||||||
Term loan | 200,000 | 200,000 | 200,000 | 200,000 | |||||||||||||
7.50% notes due 2020 – net | 197,976 | 260,166 | 197,890 | 256,852 | |||||||||||||
6.75% notes due 2022 – net | 580,931 | 713,689 | 581,105 | 735,687 | |||||||||||||
5.875% notes due 2024 – net | 400,000 | 430,052 | 400,000 | 411,266 | |||||||||||||
4.95% notes due 2024 – net | 394,344 | 394,344 | — | — | |||||||||||||
HUD debt | 297,016 | 299,641 | 298,531 | 287,718 | |||||||||||||
Subordinated debt | 20,855 | 27,880 | 20,892 | 28,849 | |||||||||||||
Totals | $ | 2,091,122 | $ | 2,325,772 | $ | 2,024,418 | $ | 2,246,372 | |||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Income Available To Common Per Share | ' | ||||||||
Schedule of computation of basic and diluted earnings per share | ' | ||||||||
The following tables set forth the computation of basic and diluted earnings per share: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands, except per share amounts) | |||||||||
Numerator: | |||||||||
Net income | $ | 55,829 | $ | 38,120 | |||||
Numerator for net income available to common per share - basic and diluted | $ | 55,829 | $ | 38,120 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share | 124,459 | 112,782 | |||||||
Effect of dilutive securities: | |||||||||
Common stock equivalents | 363 | 740 | |||||||
Denominator for diluted earnings per share | 124,822 | 113,522 | |||||||
Earnings per share – basic: | |||||||||
Net income – basic | $ | 0.45 | $ | 0.34 | |||||
Earnings per share – diluted: | |||||||||
Net income – diluted | $ | 0.45 | $ | 0.34 |
CONSOLIDATING_FINANCIAL_STATEM1
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of consolidating balance sheets | ' | ||||||||||||||||
31-Mar-14 | |||||||||||||||||
Issuer & | Non-Guarantor | Elimination | Consolidated | ||||||||||||||
Subsidiary | Subsidiaries | Company | |||||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Real estate properties | |||||||||||||||||
Land and buildings | $ | 2,649,785 | $ | 457,500 | $ | - | $ | 3,107,285 | |||||||||
Less accumulated depreciation | (679,994 | ) | (58,714 | ) | - | (738,708 | ) | ||||||||||
Real estate properties – net | 1,969,791 | 398,786 | - | 2,368,577 | |||||||||||||
Investment in direct financing leases | 531,795 | - | - | 531,795 | |||||||||||||
Mortgage notes receivable – net | 354,497 | - | - | 354,497 | |||||||||||||
2,856,083 | 398,786 | - | 3,254,869 | ||||||||||||||
Other investments – net | 56,052 | - | - | 56,052 | |||||||||||||
2,912,135 | 398,786 | - | 3,310,921 | ||||||||||||||
Assets held for sale – net | 820 | - | - | 820 | |||||||||||||
Total investments | 2,912,955 | 398,786 | - | 3,311,741 | |||||||||||||
Cash and cash equivalents | 20,374 | - | - | 20,374 | |||||||||||||
Restricted cash | 6,932 | 21,885 | - | 28,817 | |||||||||||||
Accounts receivable – net | 145,061 | 7,802 | - | 152,863 | |||||||||||||
Investment in affiliates | 103,807 | - | (103,807 | ) | - | ||||||||||||
Other assets | 37,681 | 27,449 | - | 65,130 | |||||||||||||
Total assets | $ | 3,226,810 | $ | 455,922 | $ | (103,807 | ) | $ | 3,578,925 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Revolving line of credit | $ | - | $ | - | $ | - | $ | - | |||||||||
Term loan | 200,000 | - | - | 200,000 | |||||||||||||
Secured borrowings | - | 297,016 | - | 297,016 | |||||||||||||
Unsecured borrowings – net | 1,573,251 | 20,855 | - | 1,594,106 | |||||||||||||
Accrued expenses and other liabilities | 98,212 | 34,244 | - | 132,456 | |||||||||||||
Intercompany payable | - | 74,617 | (74,617 | ) | - | ||||||||||||
Total liabilities | 1,871,463 | 426,732 | (74,617 | ) | 2,223,578 | ||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock | 12,542 | - | - | 12,542 | |||||||||||||
Common stock – additional paid-in capital | 2,059,085 | - | - | 2,059,085 | |||||||||||||
Cumulative net earnings | 982,478 | 29,190 | (29,190 | ) | 982,478 | ||||||||||||
Cumulative dividends paid | (1,698,758 | ) | - | - | (1,698,758 | ) | |||||||||||
Total stockholders’ equity | 1,355,347 | 29,190 | (29,190 | ) | 1,355,347 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 3,226,810 | $ | 455,922 | (103,807 | ) | $ | 3,578,925 | |||||||||
31-Dec-13 | |||||||||||||||||
Non – Guarantor | Elimination | Consolidated | |||||||||||||||
Issuer & | Subsidiaries | Company | |||||||||||||||
Subsidiary | |||||||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Real estate properties | |||||||||||||||||
Land and buildings | $ | 2,642,047 | $ | 457,500 | $ | — | $ | 3,099,547 | |||||||||
Less accumulated depreciation | (653,858 | ) | (53,552 | ) | — | (707,410 | ) | ||||||||||
Real estate properties – net | 1,988,189 | 403,948 | — | 2,392,137 | |||||||||||||
Investment in direct financing leases | 529,445 | — | — | 529,445 | |||||||||||||
Mortgage notes receivable – net | 241,515 | — | — | 241,515 | |||||||||||||
2,759,149 | 403,948 | — | 3,163,097 | ||||||||||||||
Other investments – net | 53,054 | — | — | 53,054 | |||||||||||||
2,812,203 | 403,948 | — | 3,216,151 | ||||||||||||||
Assets held for sale – net | 1,356 | — | — | 1,356 | |||||||||||||
Total investments | 2,813,559 | 403,948 | — | 3,217,507 | |||||||||||||
Cash and cash equivalents | 2,616 | — | — | 2,616 | |||||||||||||
Restricted cash | 6,827 | 24,932 | — | 31,759 | |||||||||||||
Accounts receivable – net | 140,331 | 7,173 | — | 147,504 | |||||||||||||
Investment in affiliates | 108,707 | — | (108,707 | ) | — | ||||||||||||
Other assets | 36,723 | 26,107 | — | 62,830 | |||||||||||||
Total assets | $ | 3,108,763 | $ | 462,160 | $ | (108,707 | ) | $ | 3,462,216 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Revolving line of credit | $ | 326,000 | $ | — | $ | — | $ | 326,000 | |||||||||
Term loan | 200,000 | — | — | 200,000 | |||||||||||||
Secured borrowings | — | 298,531 | — | 298,531 | |||||||||||||
Unsecured borrowings – net | 1,178,995 | 20,892 | — | 1,199,887 | |||||||||||||
Accrued expenses and other liabilities | 103,665 | 34,030 | — | 137,695 | |||||||||||||
Intercompany payable | — | 83,065 | (83,065 | ) | — | ||||||||||||
Total liabilities | 1,808,660 | 436,518 | (83,065 | ) | 2,162,113 | ||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock | 12,353 | — | — | 12,353 | |||||||||||||
Common stock – additional paid-in-capital | 1,998,169 | — | — | 1,998,169 | |||||||||||||
Cumulative net earnings | 926,649 | 25,642 | (25,642 | ) | 926,649 | ||||||||||||
Cumulative dividends paid | (1,637,068 | ) | — | — | (1,637,068 | ) | |||||||||||
Total stockholders’ equity | 1,300,103 | 25,642 | (25,642 | ) | 1,300,103 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 3,108,763 | $ | 462,160 | $ | (108,707 | ) | $ | 3,462,216 | ||||||||
Schedule of consolidating statement of operations | ' | ||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Issuer & | Non – | Consolidated | |||||||||||||||
Subsidiary | Guarantor | ||||||||||||||||
Guarantors | Subsidiaries | Elimination | |||||||||||||||
Revenue | |||||||||||||||||
Rental income | $ | 83,366 | $ | 12,552 | $ | - | $ | 95,918 | |||||||||
Income from direct financing leases | 14,084 | - | - | 14,084 | |||||||||||||
Mortgage interest income | 9,326 | - | - | 9,326 | |||||||||||||
Other investment income – net | 1,421 | - | - | 1,421 | |||||||||||||
Miscellaneous | 252 | - | - | 252 | |||||||||||||
Total operating revenues | 108,449 | 12,552 | - | 121,001 | |||||||||||||
Expenses | |||||||||||||||||
Depreciation and amortization | 26,282 | 5,162 | - | 31,444 | |||||||||||||
General and administrative | 6,406 | 91 | - | 6,497 | |||||||||||||
Acquisition costs | 95 | - | - | 95 | |||||||||||||
Provision for uncollectible mortgages, notes and accounts receivable | (16 | ) | - | - | (16 | ) | |||||||||||
Total operating expenses | 32,767 | 5,253 | - | 38,020 | |||||||||||||
Income before other income and expense | 75,682 | 7,299 | - | 82,981 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | 1 | 7 | - | 8 | |||||||||||||
Interest expense | (23,328 | ) | (3,753 | ) | - | (27,081 | ) | ||||||||||
Interest – amortization of deferred financing costs | (917 | ) | (5 | ) | - | (922 | ) | ||||||||||
Interest – refinancing costs | (2,040 | ) | - | - | (2,040 | ) | |||||||||||
Equity in earnings | 3,548 | - | (3,548 | ) | - | ||||||||||||
Total other expense | (22,736 | ) | (3,751 | ) | (3,548 | ) | (30,035 | ) | |||||||||
Income before gain on assets sold | 52,946 | 3,548 | (3,548 | ) | 52,946 | ||||||||||||
Gain on assets sold – net | 2,883 | - | - | 2,883 | |||||||||||||
Net income (loss) available to common stockholders | $ | 55,829 | $ | 3,548 | $ | (3,548 | ) | $ | 55,829 | ||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||
Issuer & | Non – | Elimination | Consolidated | ||||||||||||||
Subsidiary | Guarantor | Company | |||||||||||||||
Guarantors | Subsidiaries | ||||||||||||||||
Revenue | |||||||||||||||||
Rental income | $ | 80,502 | $ | 12,607 | $ | - | $ | 93,109 | |||||||||
Mortgage interest income | 7,346 | - | - | 7,346 | |||||||||||||
Other investment income – net | 1,306 | - | - | 1,306 | |||||||||||||
Total operating revenues | 89,154 | 12,607 | - | 101,761 | |||||||||||||
Expenses | |||||||||||||||||
Depreciation and amortization | 26,796 | 5,163 | - | 31,959 | |||||||||||||
General and administrative | 5,107 | 90 | - | 5,197 | |||||||||||||
Acquisition costs | 134 | - | - | 134 | |||||||||||||
Total operating expenses | 32,037 | 5,253 | - | 37,290 | |||||||||||||
Income before other income and expense | 57,117 | 7,354 | - | 64,471 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | (4 | ) | 7 | - | 3 | ||||||||||||
Interest expense | (21,490 | ) | (4,182 | ) | - | (25,672 | ) | ||||||||||
Interest – amortization of deferred financing costs | (682 | ) | - | - | (682 | ) | |||||||||||
Equity in earnings | 3,179 | - | (3,179 | ) | - | ||||||||||||
Total other expense | (18,997 | ) | (4,175 | ) | (3,179 | ) | (26,351 | ) | |||||||||
Net income available to common stockholders | $ | 38,120 | $ | 3,179 | $ | (3,179 | ) | $ | 38,120 | ||||||||
BASIS_OF_PRESENTATION_AND_SIGN3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | ' |
Contractual receivables | $3,352 | $2,941 |
Effective yield interest receivables | 5,653 | 5,333 |
Straight-line receivables | 128,810 | 123,486 |
Lease inducements | 15,513 | 16,228 |
Allowance | -465 | -484 |
Accounts receivable - net | $152,863 | $147,504 |
BASIS_OF_PRESENTATION_AND_SIGN4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Accounting Policies [Abstract] | ' |
Number of reportable segment | 1 |
PROPERTIES_AND_INVESTMENTS_una
PROPERTIES AND INVESTMENTS (unaudited) (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings per share - diluted: | ' | ' |
Net income available to common stockholders - as reported | $0.45 | $0.34 |
Pro forma | ' | ' |
Proforma Information [Line Items] | ' | ' |
Revenues | $121,088 | $102,666 |
Net income available to common stockholders | $55,890 | $38,493 |
Earnings per share - diluted: | ' | ' |
Net income available to common stockholders - as reported | $0.45 | $0.34 |
Net income available to common stockholders - pro forma | $0.45 | $0.34 |
PROPERTIES_AND_INVESTMENTS_Lea
PROPERTIES AND INVESTMENTS - Leased Property (Narrative) (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 30, 2014 | Mar. 31, 2014 |
Property available for operating lease | Property available for operating lease | SNF's | ALFs | ALFs | Specialty facilities | ||
Minimum | Maximum | Facility | Facility | Arizona | Facility | ||
Bed | |||||||
Leased Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of leased real estate properties | ' | ' | ' | 420 | 18 | ' | 11 |
Lease term | ' | '5 years | '15 years | ' | ' | ' | ' |
Increase in the specific annual percentage over the prior year's rent | 2.50% | ' | ' | ' | ' | ' | ' |
Cash paid for acquisition | ' | ' | ' | ' | ' | $4.70 | ' |
Number of operating beds | ' | ' | ' | ' | ' | 90 | ' |
PROPERTIES_AND_INVESTMENTS_Ass
PROPERTIES AND INVESTMENTS - Assets Sold or Held for Sale (Narrative) (Detail 2) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Real Estate Properties [Line Items] | ' |
Proceeds from sale of real estate investments | $3,631,000 |
SNF's | ' |
Real Estate Properties [Line Items] | ' |
Number of properties sold | 2 |
Proceeds from sale of real estate investments | 2,600,000 |
Gain (loss) on sale of properties | 2,100,000 |
Number of held-for-sale facilities | 1 |
Number of parcels of land held-for-sale | 1 |
Net book value of held-for-sale | 800,000 |
SNF's | Louisiana | ' |
Real Estate Properties [Line Items] | ' |
Number of properties sold | 1 |
Proceeds from sale of real estate investments | 1,000,000 |
Gain (loss) on sale of properties | $800,000 |
PROPERTIES_AND_INVESTMENTS_Mor
PROPERTIES AND INVESTMENTS - Mortgage Notes Receivables (Narrative) (Detail 3) (USD $) | Mar. 31, 2014 | Jan. 17, 2014 | Jan. 17, 2014 | Jan. 17, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Facility | Mortgage Loans | Mortgage Loans | Mortgage Loans | Mortgage Receivable | Mortgage Receivable | Mortgage Receivable | Mortgage Receivable |
Operator | Bed | SNF's | ALFs | State | SNF's | ALFs | Fixed-rate mortgages | |
State | Pennsylvania | Ohio | Operator | Facility | Facility | Facility | ||
Facility | Facility | |||||||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of underlying real estate mortgages | ' | ' | ' | ' | ' | ' | ' | 17 |
Number of facilities owned | 548 | ' | 7 | 2 | ' | 40 | 2 | ' |
Number of states | 38 | ' | ' | ' | 6 | ' | ' | ' |
Number of operators | 49 | ' | ' | ' | 6 | ' | ' | ' |
Value of first mortgage loan with an existing operator | ' | $112.50 | ' | ' | ' | ' | ' | ' |
Number of operating beds | ' | 784 | ' | ' | ' | ' | ' | ' |
Interest rate | ' | 9.50% | ' | ' | ' | ' | ' | ' |
DIRECT_FINANCING_LEASES_Detail
DIRECT FINANCING LEASES (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Property | Property |
Leases, Capital [Abstract] | ' | ' |
Minimum lease payments receivable | $4,279,317 | $4,291,067 |
Estimated residual values | ' | ' |
Less unearned income | -3,747,522 | -3,761,622 |
Investment in direct financing leases | $531,795 | $529,445 |
Properties subject to direct financing leases | 56 | 56 |
DIRECT_FINANCING_LEASES_Detail1
DIRECT FINANCING LEASES (Detail 1) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases, Capital [Abstract] | ' |
Year 1 | $47,000 |
Year 2 | 47,000 |
Year 3 | 47,128 |
Year 4 | 47,778 |
Year 5 | $48,972 |
DIRECT_FINANCING_LEASES_Narrat
DIRECT FINANCING LEASES (Narrative) (Detail) (USD $) | Mar. 31, 2014 | Nov. 27, 2013 | Nov. 27, 2013 | Nov. 27, 2013 | Nov. 27, 2013 | Nov. 27, 2013 | Nov. 27, 2013 | Nov. 27, 2013 |
In Millions, unless otherwise specified | Facility | Ark Holding Company Inc | Ark Holding Company Inc | Ark Holding Company Inc | Ark Holding Company Inc | Ark Holding Company Inc | SNF's | ALFs |
State | Bed | Southeast | Northwest | Texas | Indiana | Ark Holding Company Inc | Ark Holding Company Inc | |
Lease | Facility | Facility | Facility | Facility | Direct financing leases | Direct financing leases | ||
Facility | Facility | Facility | ||||||
State | ||||||||
Capital Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for acquisition | ' | $529 | ' | ' | ' | ' | ' | ' |
Number of lease | ' | 4 | ' | ' | ' | ' | ' | ' |
Number of facilities owned | 548 | 56 | 39 | 7 | 9 | 1 | 55 | 1 |
Lease term | ' | '50 years | ' | ' | ' | ' | ' | ' |
Interest on lease per annum | ' | 10.60% | ' | ' | ' | ' | ' | ' |
Number of licensed beds | ' | 5,624 | ' | ' | ' | ' | ' | ' |
Number of states | 38 | 12 | ' | ' | ' | ' | ' | ' |
OTHER_INVESTMENTS_Details
OTHER INVESTMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | $51,296 | [1] | $48,298 | [1] |
Allowance for loss on notes receivable | -1,977 | -1,977 | ||
Notes receivable, net | 49,319 | 46,321 | ||
Other | 2,400 | 2,400 | ||
Marketable securities | 4,333 | 4,333 | ||
Other investments - net | 56,052 | 53,054 | ||
Other investment note due 2015 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | 2,268 | 2,318 | ||
Other investment notes due 2021 - 2023 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | 13,504 | 13,427 | ||
Other investment note due 2014 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | ' | 62 | ||
$31.5 million other investment note due 2017 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | 26,500 | 23,750 | ||
$2.5 million other investment note due 2014 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | 829 | 546 | ||
$6.0 million other investment note due 2013 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | 5,439 | 5,439 | ||
$1.3 million other investment note due 2017 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | 1,300 | 1,300 | ||
$1.5 million other investment note due 2014 | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Notes receivable, gross | $1,456 | $1,456 | ||
[1] | The majority of these notes bear interest at approximately 10% annually. |
OTHER_INVESTMENTS_Narrative_De
OTHER INVESTMENTS (Narrative) (Detail) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2014 | Mar. 31, 2014 |
Schedule of Investments [Line Items] | ' | ' |
Interest rate | ' | 10.00% |
$31.5 million other investment note due 2017 | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Interest rate | 10.00% | ' |
Amount of additional loan drawn | $3.50 | ' |
Interest rate on additional loan drawn | 10.50% | ' |
Loan amount | ' | $31.50 |
Notes receivable term | '5 years | ' |
CONCENTRATION_OF_RISK_Narrativ
CONCENTRATION OF RISK (Narrative) (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Facility | |||
Operator | |||
State | |||
Concentration Risk [Line Items] | ' | ' | ' |
Number of facilities owned | 548 | ' | ' |
Number of states | 38 | ' | ' |
Number of operators | 49 | ' | ' |
Gross investment in facilities, net of impairments and before reserve for uncollectible loans | $4,000,000,000 | ' | ' |
Percentage share of real estate investments related to long-term care facilities | 99.00% | ' | ' |
Miscellaneous investments, net | 56,052,000 | ' | 53,054,000 |
Operated, concentration percent for separate disclosure | 10.00% | ' | ' |
Operated, concentration number | 1 | ' | ' |
Revenues from operations | 121,001,000 | 101,761,000 | ' |
Revenues from operations, percentage | 10.00% | ' | ' |
Florida | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration percent by state | 16.00% | ' | ' |
Ohio | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration percent by state | 10.00% | ' | ' |
Indiana | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration percent by state | 9.00% | ' | ' |
New Ark Investment, Inc. | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Operated, concentration percent | 13.00% | ' | ' |
Revenues from operations | 14,100,000 | ' | ' |
Revenues from operations, percentage | 12.00% | ' | ' |
Genesis Healthcare | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Revenues from operations | $13,800,000 | ' | ' |
Revenues from operations, percentage | 11.00% | ' | ' |
SNF's | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of facilities owned | 475 | ' | ' |
Number of facilities held-for-sale/closed | 1 | ' | ' |
Number of facilities under fixed rate mortgage loan | 40 | ' | ' |
ALFs | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of facilities owned | 19 | ' | ' |
Number of facilities under fixed rate mortgage loan | 2 | ' | ' |
Specialty facilities | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of facilities owned | 11 | ' | ' |
DIVIDENDS_Narrative_Detail
DIVIDENDS (Narrative) (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | |
Jan. 15, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 18, 2014 | |
Subsequent Event | ||||
Dividends [Line Items] | ' | ' | ' | ' |
Common stock dividend declared, per share | $0.49 | $0.49 | $0.45 | $0.50 |
Increase in quarterly common dividend, per share | $0.01 | ' | ' | $0.01 |
Dividends declared, date of declaration | 15-Jan-14 | ' | ' | 18-Apr-14 |
Dividends declared, date of payment | 17-Feb-14 | ' | ' | 15-May-14 |
Dividends declared, date of record | 31-Jan-14 | ' | ' | 30-Apr-14 |
TAXES_Narrative_Detail
TAXES (Narrative) (Detail) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Permitted ownership of a taxable REIT subsidiary ("TRS"), maximum percentage | 100.00% |
Net operating loss carry-forward | $1 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ' |
Stock-based compensation expense | $2,263 | $1,452 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Detail 1) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares/Units | 1,558,824 |
Grant Date Average Fair Value Per Unit/ Share | $15.12 |
Total Compensation Cost | $23.60 |
Unrecognized Compensation Cost | 17.8 |
Restricted stock units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 213,741 |
Grant Date Average Fair Value Per Unit/ Share | $29.80 |
Total Compensation Cost | 6.4 |
Weighted Average Period of Expense Recognition | '36 months |
Unrecognized Compensation Cost | 5.8 |
Restricted stock units | Multi-year TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2011 |
Shares/Units | 279,550 |
Grant Date Average Fair Value Per Unit/ Share | $11.06 |
Total Compensation Cost | 3.1 |
Weighted Average Period of Expense Recognition | '44 months |
Unrecognized Compensation Cost | 0.2 |
Restricted stock units | Multi-year Relative TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2011 |
Shares/Units | 93,183 |
Grant Date Average Fair Value Per Unit/ Share | $12.26 |
Total Compensation Cost | 1.1 |
Weighted Average Period of Expense Recognition | '44 months |
Unrecognized Compensation Cost | 0.1 |
Restricted stock units | 2014 Transition TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 77,371 |
Grant Date Average Fair Value Per Unit/ Share | $8.27 |
Total Compensation Cost | 0.6 |
Weighted Average Period of Expense Recognition | '12 months |
Unrecognized Compensation Cost | 0.5 |
Restricted stock units | 2015 Transition TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 77,369 |
Grant Date Average Fair Value Per Unit/ Share | $7.48 |
Total Compensation Cost | 0.6 |
Weighted Average Period of Expense Recognition | '24 months |
Unrecognized Compensation Cost | 0.5 |
Restricted stock units | 2016 Transition TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 115,785 |
Grant Date Average Fair Value Per Unit/ Share | $8.67 |
Total Compensation Cost | 1 |
Weighted Average Period of Expense Recognition | '36 months |
Unrecognized Compensation Cost | 0.9 |
Restricted stock units | 2014 Transition Relative TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 77,371 |
Grant Date Average Fair Value Per Unit/ Share | $11.68 |
Total Compensation Cost | 0.9 |
Weighted Average Period of Expense Recognition | '12 months |
Unrecognized Compensation Cost | 0.7 |
Restricted stock units | 2015 Transition Relative TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 77,368 |
Grant Date Average Fair Value Per Unit/ Share | $13.06 |
Total Compensation Cost | 1 |
Weighted Average Period of Expense Recognition | '24 months |
Unrecognized Compensation Cost | 0.9 |
Restricted stock units | 2016 Transition Relative TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2013 |
Shares/Units | 115,781 |
Grant Date Average Fair Value Per Unit/ Share | $14.25 |
Total Compensation Cost | 1.7 |
Weighted Average Period of Expense Recognition | '36 months |
Unrecognized Compensation Cost | 1.5 |
Restricted stock units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2014 |
Shares/Units | 122,137 |
Grant Date Average Fair Value Per Unit/ Share | $29.80 |
Total Compensation Cost | 3.6 |
Weighted Average Period of Expense Recognition | '36 months |
Unrecognized Compensation Cost | 3.3 |
Restricted stock units | 2016 Transition TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2014 |
Shares/Units | 154,584 |
Grant Date Average Fair Value Per Unit/ Share | $8.67 |
Total Compensation Cost | 1.4 |
Weighted Average Period of Expense Recognition | '48 months |
Unrecognized Compensation Cost | 1.3 |
Restricted stock units | 2016 Transition Relative TSR PRSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Year | '2014 |
Shares/Units | 154,584 |
Grant Date Average Fair Value Per Unit/ Share | $14.25 |
Total Compensation Cost | 2.2 |
Weighted Average Period of Expense Recognition | '48 months |
Unrecognized Compensation Cost | $2.10 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Detail) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2011 | Mar. 31, 2014 | Jan. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | |
Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Performance restricted stock units | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | |
Employee | Employee | Employee | Multi-year TSR PRSUs | Multi-year TSR PRSUs | Multi-year TSR PRSUs | Multi-year TSR PRSUs | Multi-year TSR PRSUs | Multi-year Relative TSR PRSUs | Multi-year Relative TSR PRSUs | Multi-year Relative TSR PRSUs | Multi-year Relative TSR PRSUs | Multi-year Relative TSR PRSUs | Annual TSR | 2014 Transition TSR PRSUs | 2015 Transition TSR PRSUs | 2016 Transition TSR PRSUs | 2016 Transition TSR PRSUs | 2014 Transition Relative TSR PRSUs | 2015 Transition Relative TSR PRSUs | 2016 Transition Relative TSR PRSUs | 2016 Transition Relative TSR PRSUs | Employee | Employee | ||
Type_Award | Type_Award | Vesting on March 31, 2014 | Vesting on June 30, 2014 | Vesting on September 30, 2014 | Vesting on December 31, 2014 | Vesting on March 31, 2014 | Vesting on June 30, 2014 | Vesting on September 30, 2014 | Vesting on December 31, 2014 | ||||||||||||||||
Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | Awards granted in January 1, 2011 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock granted, number of employees | 6 | 6 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 |
Number of shares granted | ' | ' | ' | ' | 279,552 | ' | ' | ' | ' | 93,183 | ' | ' | ' | ' | 124,244 | 77,371 | 77,369 | 154,584 | 115,785 | 77,371 | 77,368 | 154,584 | 115,781 | 122,137 | 213,741 |
Stock awards, vesting percent | ' | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | ' | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '2 years | '3 years | '3 years | '1 year | '2 years | '3 years | '3 years | ' | ' |
Shares of stock vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 124,244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Method used to estimate the fair value for PRSUs | ' | ' | ' | 'Monte Carlo model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of types of share based awards | 2 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Narrat1
STOCK-BASED COMPENSATION (Narrative) (Detail 1) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of restricted stock outstanding | 1,558,824 |
Unrecognized compensation Cost | $17.80 |
Restricted stock | Directors | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of restricted stock outstanding | 30,970 |
Vesting period, years | '3 years |
Unrecognized compensation Cost | $0.40 |
FINANCING_ACTIVITIES_AND_BORRO2
FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS - Long-term borrowings (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 06, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||||||||
In Thousands, unless otherwise specified | 2020 notes | 2022 notes | 2024 notes | 2024 notes | Secured borrowings | Secured borrowings | Secured borrowings | Secured borrowings | Secured borrowings | Secured borrowings | Secured borrowings | Secured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | ||||||||||
HUD mortgages assumed June 2010 | HUD mortgages assumed June 2010 | HUD mortgages assumed October 2011 | HUD mortgages assumed October 2011 | HUD mortgages assumed December 2011 | HUD mortgages assumed December 2011 | HUD mortgages assumed December 2012 | HUD mortgages assumed December 2012 | Revolving line of credit | Revolving line of credit | Term loan | Term loan | 2020 notes | 2020 notes | 2022 notes | 2022 notes | 2024 notes | 2024 notes | 2024 notes | 2024 notes | 2024 notes | Subordinated debt | Subordinated debt | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Maturity | ' | ' | ' | ' | ' | ' | '2040 - 2045 | [1] | ' | '2036 - 2040 | [1] | ' | '2044 | [1] | ' | '2031 - 2045 | [1] | ' | ' | ' | '2016 | ' | '2017 | ' | '2020 | ' | '2022 | ' | '2024 | ' | '2024 | ' | ' | '2021 | ' | ||||
Current Rate | ' | ' | ' | ' | ' | ' | 4.85% | [1] | ' | 4.87% | [1] | ' | 3.06% | [1] | ' | 5.50% | [1] | ' | ' | ' | 1.95% | ' | 1.91% | ' | 7.50% | ' | 6.75% | ' | 5.88% | ' | 4.95% | 4.95% | ' | 9.00% | ' | ||||
Long-term borrowing amount, secured borrowings | ' | ' | ' | ' | ' | ' | $128,068 | [1] | $128,641 | [1] | $30,929 | [1] | $31,145 | [1] | $58,301 | [1] | $58,592 | [1] | $79,718 | [1] | $80,153 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
HUD debt | 297,016 | 298,531 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revolving line of credit | ' | 326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Term loan | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revolving line of credit including term loan | 200,000 | 526,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Senior notes outstanding | ' | ' | 200,000 | 575,000 | 400,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 575,000 | 575,000 | 400,000 | 400,000 | 400,000 | ' | ' | ' | ' | ||||||||
Subordinated debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,855 | 20,892 | ||||||||
Unsecured borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,595,855 | 1,195,892 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Premium (discount) - net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,749 | 3,995 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total unsecured borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,794,106 | 1,725,887 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Totals - net | $2,091,122 | $2,024,418 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | Reflects the weighted average annual interest rate on the mortgages. |
FINANCING_ACTIVITIES_AND_BORRO3
FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS - Long-term borrowings (Detail) - Unsecured Borrowings (Narrative) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 06, 2012 | Mar. 31, 2014 | Dec. 06, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 06, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 06, 2012 | Dec. 06, 2012 | Jan. 31, 2014 | Dec. 27, 2013 | Mar. 31, 2014 | Dec. 27, 2013 | Dec. 27, 2013 | Mar. 06, 2014 | Mar. 31, 2014 |
Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | Unsecured borrowings | |||
2012 Revolving Credit Facility | 2012 Revolving Credit Facility | 2012 Revolving Credit Facility | 2012 Revolving Credit Facility | 2012 Term Loan Facility | 2012 Term Loan Facility | 2012 Term Loan Facility | 2012 Term Loan Facility | 2012 Credit Facilities | 2012 Credit Facilities | 2012 Credit Facilities | 2013 Term Loan Facility | 2013 Term Loan Facility | 2013 Term Loan Facility | 2013 Term Loan Facility | 2013 Term Loan Facility | 2024 notes | 2024 notes | ||||
Minimum | Maximum | Minimum | Maximum | Maximum | Minimum | Maximum | |||||||||||||||
Borrowing Arrangements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, borrowing capacity | ' | ' | $700,000,000 | ' | $500,000,000 | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000,000 | ' |
Credit facility, potential borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of credit remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' |
Line of credit outstanding amount | ' | 326,000,000 | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pricing of credit facility at LIBOR plus an applicable percentage | ' | ' | ' | 1.50% | ' | 1.00% | 1.90% | 1.75% | ' | 1.10% | 2.30% | ' | ' | ' | ' | 1.75% | ' | 1.10% | 2.30% | ' | ' |
Credit facility, description of variable rate basis | ' | ' | ' | 'Revolving Credit Facility is priced at LIBOR plus an applicable percentage (beginning at 150 basis points, with a range of 100 to 190 basis points) based on our ratings from Standard & Poor's, Moody's and/or Fitch Ratings | ' | ' | ' | 'The 2012 Term Loan Facility is also priced at LIBOR plus an applicable percentage (beginning at 175 basis points, with a range of 110 to 230 basis points) based our ratings from Standard & Poor's, Moody's and/or Fitch Ratings | ' | ' | ' | ' | ' | ' | ' | 'The Term Loan Facility is also priced at LIBOR plus an applicable percentage (beginning at 175 basis points, with a range of 110 to 230 basis points) based on the Company's ratings from Standard & Poor's, Moody's and/or Fitch Ratings. | ' | ' | ' | ' | ' |
Facility fee, basis spread on variable rate | ' | ' | ' | 0.30% | ' | 0.15% | 0.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility fee, description of variable rate basis | ' | ' | ' | 'Facility fee based on the same ratings (initially 30 basis points, with a range of 15 to 45 basis points). | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt maturity date | ' | ' | ' | 6-Dec-16 | ' | ' | ' | 6-Dec-17 | ' | ' | ' | ' | ' | ' | ' | 29-Feb-16 | ' | ' | ' | ' | ' |
Write-offs associated with deferred costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Term loan paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.95% | 4.95% |
Debt instrument, issuance price, percentage of principal amount issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.58% | ' |
Proceeds from long term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | $394,300,000 | ' |
FINANCING_ACTIVITIES_AND_BORRO4
FINANCING ACTIVITIES AND BORROWING ARRANGEMENTS (Narrative) (Detail 1) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 18, 2013 | Mar. 31, 2014 | |
Equity Shelf Program | Equity Shelf Program | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Sales price, equity distribution agreement | ' | ' | $250,000,000 | ' |
Stock issued | 864,000 | ' | ' | 864,000 |
Average price per share (in dollars per share) | $32.94 | ' | ' | $32.94 |
Gross proceeds from issue of common stock, before commissions | ' | ' | ' | 28,500,000 |
Commissions on sale of common stock | ' | ' | ' | 600,000 |
Shares issued through dividend reinvestment plan and common stock purchase program | 1,000,000 | ' | ' | ' |
Dividend reinvestment plan (in dollars per share) | $31.77 | ' | ' | ' |
Net proceeds from shares issued under dividend reinvestment and common stock purchase program | $31,540,000 | $36,330,000 | ' | ' |
FINANCIAL_INSTRUMENTS_Detail
FINANCIAL INSTRUMENTS (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $20,374 | $2,616 | $25,611 | $1,711 |
Restricted cash | 28,817 | 31,759 | ' | ' |
Investment in direct financing leases | 531,795 | 529,445 | ' | ' |
Mortgage notes receivable - net | 354,497 | 241,515 | ' | ' |
Other investments - net | 56,052 | 53,054 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Revolving line of credit | ' | 326,000 | ' | ' |
Term loan | 200,000 | 200,000 | ' | ' |
HUD debt | 297,016 | 298,531 | ' | ' |
Carrying Amount | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 20,374 | 2,616 | ' | ' |
Restricted cash | 28,817 | 31,759 | ' | ' |
Investment in direct financing leases | 531,795 | 529,445 | ' | ' |
Mortgage notes receivable - net | 354,497 | 241,515 | ' | ' |
Other investments - net | 56,052 | 53,054 | ' | ' |
Totals | 991,535 | 858,389 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Revolving line of credit | ' | 326,000 | ' | ' |
Term loan | 200,000 | 200,000 | ' | ' |
HUD debt | 297,016 | 298,531 | ' | ' |
Subordinated debt | 20,855 | 20,892 | ' | ' |
Totals | 2,091,122 | 2,024,418 | ' | ' |
Carrying Amount | 7.50% notes due 2020 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 197,976 | 197,890 | ' | ' |
Carrying Amount | 6.75% notes due 2022 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 580,931 | 581,105 | ' | ' |
Carrying Amount | 5.875% notes due 2024 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 400,000 | 400,000 | ' | ' |
Carrying Amount | 4.95% notes due 2024 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 394,344 | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 20,374 | 2,616 | ' | ' |
Restricted cash | 28,817 | 31,759 | ' | ' |
Investment in direct financing leases | 531,795 | 529,445 | ' | ' |
Mortgage notes receivable - net | 379,719 | 240,482 | ' | ' |
Other investments - net | 55,664 | 50,124 | ' | ' |
Totals | 1,016,369 | 854,426 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Revolving line of credit | ' | 326,000 | ' | ' |
Term loan | 200,000 | 200,000 | ' | ' |
HUD debt | 299,641 | 287,718 | ' | ' |
Subordinated debt | 27,880 | 28,849 | ' | ' |
Totals | 2,325,772 | 2,246,372 | ' | ' |
Fair Value | 7.50% notes due 2020 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 260,166 | 256,852 | ' | ' |
Fair Value | 6.75% notes due 2022 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 713,689 | 735,687 | ' | ' |
Fair Value | 5.875% notes due 2024 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | 430,052 | 411,266 | ' | ' |
Fair Value | 4.95% notes due 2024 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes Payable | $394,344 | ' | ' | ' |
FINANCIAL_INSTRUMENTS_Parenthe
FINANCIAL INSTRUMENTS (Parentheticals) (Detail) | Mar. 31, 2014 |
7.50% notes due 2020 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Interest Rate | 7.50% |
6.75% notes due 2022 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Interest Rate | 6.75% |
5.875% notes due 2024 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Interest Rate | 5.88% |
4.95% notes due 2024 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Interest Rate | 4.95% |
EARNINGS_PER_SHARE_Detail
EARNINGS PER SHARE (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income | $55,829 | $38,120 |
Numerator for net income available to common per share - basic and diluted | $55,829 | $38,120 |
Denominator: | ' | ' |
Denominator for basic earnings per share | 124,459 | 112,782 |
Effect of dilutive securities: | ' | ' |
Common stock equivalents | 363 | 740 |
Denominator for diluted earnings per share | 124,822 | 113,522 |
Earnings per share - basic: | ' | ' |
Net income - basic (in dollars per share) | $0.45 | $0.34 |
Earnings per share - diluted: | ' | ' |
Net income - diluted (in dollars per share) | $0.45 | $0.34 |
CONSOLIDATING_FINANCIAL_STATEM2
CONSOLIDATING FINANCIAL STATEMENTS (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Real estate properties | ' | ' | ' | ' |
Land and buildings | $3,107,285 | $3,099,547 | ' | ' |
Less accumulated depreciation | -738,708 | -707,410 | ' | ' |
Real estate properties - net | 2,368,577 | 2,392,137 | ' | ' |
Investment in direct financing leases | 531,795 | 529,445 | ' | ' |
Mortgage notes receivable - net | 354,497 | 241,515 | ' | ' |
Real estate properties, total | 3,254,869 | 3,163,097 | ' | ' |
Other investments - net | 56,052 | 53,054 | ' | ' |
Total investments held, continuing operations | 3,310,921 | 3,216,151 | ' | ' |
Assets held for sale - net | 820 | 1,356 | ' | ' |
Total investments | 3,311,741 | 3,217,507 | ' | ' |
Cash and cash equivalents | 20,374 | 2,616 | 25,611 | 1,711 |
Restricted cash | 28,817 | 31,759 | ' | ' |
Accounts receivable - net | 152,863 | 147,504 | ' | ' |
Investment in affiliates | ' | ' | ' | ' |
Other assets | 65,130 | 62,830 | ' | ' |
Total assets | 3,578,925 | 3,462,216 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Revolving line of credit | ' | 326,000 | ' | ' |
Term loan | 200,000 | 200,000 | ' | ' |
Secured borrowings | 297,016 | 298,531 | ' | ' |
Unsecured borrowings - net | 1,594,106 | 1,199,887 | ' | ' |
Accrued expenses and other liabilities | 132,456 | 137,695 | ' | ' |
Intercompany payable | ' | ' | ' | ' |
Total liabilities | 2,223,578 | 2,162,113 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Common stock | 12,542 | 12,353 | ' | ' |
Common stock - additional paid-in capital | 2,059,085 | 1,998,169 | ' | ' |
Cumulative net earnings | 982,478 | 926,649 | ' | ' |
Cumulative dividends paid | -1,698,758 | -1,637,068 | ' | ' |
Total stockholders' equity | 1,355,347 | 1,300,103 | ' | ' |
Total liabilities and stockholders' equity | 3,578,925 | 3,462,216 | ' | ' |
Issuer & Subsidiary Guarantors | ' | ' | ' | ' |
Real estate properties | ' | ' | ' | ' |
Land and buildings | 2,649,785 | 2,642,047 | ' | ' |
Less accumulated depreciation | -679,994 | -653,858 | ' | ' |
Real estate properties - net | 1,969,791 | 1,988,189 | ' | ' |
Investment in direct financing leases | 531,795 | 529,445 | ' | ' |
Mortgage notes receivable - net | 354,497 | 241,515 | ' | ' |
Real estate properties, total | 2,856,083 | 2,759,149 | ' | ' |
Other investments - net | 56,052 | 53,054 | ' | ' |
Total investments held, continuing operations | 2,912,135 | 2,812,203 | ' | ' |
Assets held for sale - net | 820 | 1,356 | ' | ' |
Total investments | 2,912,955 | 2,813,559 | ' | ' |
Cash and cash equivalents | 20,374 | 2,616 | ' | ' |
Restricted cash | 6,932 | 6,827 | ' | ' |
Accounts receivable - net | 145,061 | 140,331 | ' | ' |
Investment in affiliates | 103,807 | 108,707 | ' | ' |
Other assets | 37,681 | 36,723 | ' | ' |
Total assets | 3,226,810 | 3,108,763 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Revolving line of credit | ' | 326,000 | ' | ' |
Term loan | 200,000 | 200,000 | ' | ' |
Secured borrowings | ' | ' | ' | ' |
Unsecured borrowings - net | 1,573,251 | 1,178,995 | ' | ' |
Accrued expenses and other liabilities | 98,212 | 103,665 | ' | ' |
Intercompany payable | ' | ' | ' | ' |
Total liabilities | 1,871,463 | 1,808,660 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Common stock | 12,542 | 12,353 | ' | ' |
Common stock - additional paid-in capital | 2,059,085 | 1,998,169 | ' | ' |
Cumulative net earnings | 982,478 | 926,649 | ' | ' |
Cumulative dividends paid | -1,698,758 | -1,637,068 | ' | ' |
Total stockholders' equity | 1,355,347 | 1,300,103 | ' | ' |
Total liabilities and stockholders' equity | 3,226,810 | 3,108,763 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Real estate properties | ' | ' | ' | ' |
Land and buildings | 457,500 | 457,500 | ' | ' |
Less accumulated depreciation | -58,714 | -53,552 | ' | ' |
Real estate properties - net | 398,786 | 403,948 | ' | ' |
Investment in direct financing leases | ' | ' | ' | ' |
Mortgage notes receivable - net | ' | ' | ' | ' |
Real estate properties, total | 398,786 | 403,948 | ' | ' |
Other investments - net | ' | ' | ' | ' |
Total investments held, continuing operations | 398,786 | 403,948 | ' | ' |
Assets held for sale - net | ' | ' | ' | ' |
Total investments | 398,786 | 403,948 | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' |
Restricted cash | 21,885 | 24,932 | ' | ' |
Accounts receivable - net | 7,802 | 7,173 | ' | ' |
Investment in affiliates | ' | ' | ' | ' |
Other assets | 27,449 | 26,107 | ' | ' |
Total assets | 455,922 | 462,160 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Revolving line of credit | ' | ' | ' | ' |
Term loan | ' | ' | ' | ' |
Secured borrowings | 297,016 | 298,531 | ' | ' |
Unsecured borrowings - net | 20,855 | 20,892 | ' | ' |
Accrued expenses and other liabilities | 34,244 | 34,030 | ' | ' |
Intercompany payable | 74,617 | 83,065 | ' | ' |
Total liabilities | 426,732 | 436,518 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Common stock | ' | ' | ' | ' |
Common stock - additional paid-in capital | ' | ' | ' | ' |
Cumulative net earnings | 29,190 | 25,642 | ' | ' |
Cumulative dividends paid | ' | ' | ' | ' |
Total stockholders' equity | 29,190 | 25,642 | ' | ' |
Total liabilities and stockholders' equity | 455,922 | 462,160 | ' | ' |
Elimination Company | ' | ' | ' | ' |
Real estate properties | ' | ' | ' | ' |
Land and buildings | ' | ' | ' | ' |
Less accumulated depreciation | ' | ' | ' | ' |
Real estate properties - net | ' | ' | ' | ' |
Investment in direct financing leases | ' | ' | ' | ' |
Mortgage notes receivable - net | ' | ' | ' | ' |
Real estate properties, total | ' | ' | ' | ' |
Other investments - net | ' | ' | ' | ' |
Total investments held, continuing operations | ' | ' | ' | ' |
Assets held for sale - net | ' | ' | ' | ' |
Total investments | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' |
Restricted cash | ' | ' | ' | ' |
Accounts receivable - net | ' | ' | ' | ' |
Investment in affiliates | -103,807 | -108,707 | ' | ' |
Other assets | ' | ' | ' | ' |
Total assets | -103,807 | -108,707 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Revolving line of credit | ' | ' | ' | ' |
Term loan | ' | ' | ' | ' |
Secured borrowings | ' | ' | ' | ' |
Unsecured borrowings - net | ' | ' | ' | ' |
Accrued expenses and other liabilities | ' | ' | ' | ' |
Intercompany payable | -74,617 | -83,065 | ' | ' |
Total liabilities | -74,617 | -83,065 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Common stock | ' | ' | ' | ' |
Common stock - additional paid-in capital | ' | ' | ' | ' |
Cumulative net earnings | -29,190 | -25,642 | ' | ' |
Cumulative dividends paid | ' | ' | ' | ' |
Total stockholders' equity | -29,190 | -25,642 | ' | ' |
Total liabilities and stockholders' equity | ($103,807) | ($108,707) | ' | ' |
CONSOLIDATING_FINANCIAL_STATEM3
CONSOLIDATING FINANCIAL STATEMENTS (Detail 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue | ' | ' |
Rental income | $95,918 | $93,109 |
Income from direct financing leases | 14,084 | ' |
Mortgage interest income | 9,326 | 7,346 |
Other investment income - net | 1,421 | 1,306 |
Miscellaneous | 252 | ' |
Total operating revenues | 121,001 | 101,761 |
Expenses | ' | ' |
Depreciation and amortization | 31,444 | 31,959 |
General and administrative | 6,497 | 5,197 |
Acquisition costs | 95 | 134 |
Provisions for uncollectible mortgages, notes and accounts receivable | -16 | ' |
Total operating expenses | 38,020 | 37,290 |
Income before other income and expense | 82,981 | 64,471 |
Other income (expense): | ' | ' |
Interest income | 8 | 3 |
Interest expense | -27,081 | -25,672 |
Interest - amortization of deferred financing costs | -922 | -682 |
Interest - refinancing costs | -2,040 | ' |
Equity in earnings | ' | ' |
Total other expense | -30,035 | -26,351 |
Income before gain on assets sold | 52,946 | 38,120 |
Gain on assets sold - net | 2,883 | ' |
Net income (loss) available to common stockholders | 55,829 | 38,120 |
Issuer & Subsidiary Guarantors | ' | ' |
Revenue | ' | ' |
Rental income | 83,366 | 80,502 |
Income from direct financing leases | 14,084 | ' |
Mortgage interest income | 9,326 | 7,346 |
Other investment income - net | 1,421 | 1,306 |
Miscellaneous | 252 | ' |
Total operating revenues | 108,449 | 89,154 |
Expenses | ' | ' |
Depreciation and amortization | 26,282 | 26,796 |
General and administrative | 6,406 | 5,107 |
Acquisition costs | 95 | 134 |
Provisions for uncollectible mortgages, notes and accounts receivable | -16 | ' |
Total operating expenses | 32,767 | 32,037 |
Income before other income and expense | 75,682 | 57,117 |
Other income (expense): | ' | ' |
Interest income | 1 | -4 |
Interest expense | -23,328 | -21,490 |
Interest - amortization of deferred financing costs | -917 | -682 |
Interest - refinancing costs | -2,040 | ' |
Equity in earnings | 3,548 | 3,179 |
Total other expense | -22,736 | -18,997 |
Income before gain on assets sold | 52,946 | ' |
Gain on assets sold - net | 2,883 | ' |
Net income (loss) available to common stockholders | 55,829 | 38,120 |
Non-Guarantor Subsidiaries | ' | ' |
Revenue | ' | ' |
Rental income | 12,552 | 12,607 |
Income from direct financing leases | ' | ' |
Mortgage interest income | ' | ' |
Other investment income - net | ' | ' |
Miscellaneous | ' | ' |
Total operating revenues | 12,552 | 12,607 |
Expenses | ' | ' |
Depreciation and amortization | 5,162 | 5,163 |
General and administrative | 91 | 90 |
Acquisition costs | ' | ' |
Provisions for uncollectible mortgages, notes and accounts receivable | ' | ' |
Total operating expenses | 5,253 | 5,253 |
Income before other income and expense | 7,299 | 7,354 |
Other income (expense): | ' | ' |
Interest income | 7 | 7 |
Interest expense | -3,753 | -4,182 |
Interest - amortization of deferred financing costs | -5 | ' |
Interest - refinancing costs | ' | ' |
Equity in earnings | ' | ' |
Total other expense | -3,751 | -4,175 |
Income before gain on assets sold | 3,548 | ' |
Gain on assets sold - net | ' | ' |
Net income (loss) available to common stockholders | 3,548 | 3,179 |
Elimination Company | ' | ' |
Revenue | ' | ' |
Rental income | ' | ' |
Income from direct financing leases | ' | ' |
Mortgage interest income | ' | ' |
Other investment income - net | ' | ' |
Miscellaneous | ' | ' |
Total operating revenues | ' | ' |
Expenses | ' | ' |
Depreciation and amortization | ' | ' |
General and administrative | ' | ' |
Acquisition costs | ' | ' |
Provisions for uncollectible mortgages, notes and accounts receivable | ' | ' |
Total operating expenses | ' | ' |
Income before other income and expense | ' | ' |
Other income (expense): | ' | ' |
Interest income | ' | ' |
Interest expense | ' | ' |
Interest - amortization of deferred financing costs | ' | ' |
Interest - refinancing costs | ' | ' |
Equity in earnings | -3,548 | -3,179 |
Total other expense | -3,548 | -3,179 |
Income before gain on assets sold | -3,548 | ' |
Gain on assets sold - net | ' | ' |
Net income (loss) available to common stockholders | ($3,548) | ($3,179) |
CONSOLIDATING_FINANCIAL_STATEM4
CONSOLIDATING FINANCIAL STATEMENTS (Narrative) (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Jun. 29, 2010 | Mar. 26, 2013 | Mar. 31, 2014 |
7.50% notes due 2020 | 6.75% notes due 2022 | 5.875% notes due 2024 | 4.95% notes due 2024 | HUD debt | HUD debt | HUD debt | HUD debt | HUD debt | HUD debt | HUD debt | HUD debt | HUD Mortgage Debt Refinancing | HUD Mortgage Debt Refinancing | |
Non-guarantor subsidiaries | Non-guarantor subsidiaries | Non-guarantor subsidiaries | Non-guarantor subsidiaries | Non-guarantor subsidiaries | Non-guarantor subsidiaries | Guarantor subsidiaries | CapitalSource | Non-guarantor subsidiaries | Non-guarantor subsidiaries | |||||
Facility | Facility | Subsidiary | Subsidiary | Non-guarantor subsidiaries | Property | |||||||||
Subsidiary | Subsidiary | Subsidiary | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes, principal amount | $200,000,000 | $575,000,000 | $400,000,000 | $400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate on senior notes | 7.50% | 6.75% | 5.88% | 4.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries acquired and designated as unrestricted | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 20 | ' | 39 | ' | ' |
Number of subsidiaries acquired and designated as restricted | ' | ' | ' | ' | 12 | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
Principal payment for mortgage | ' | ' | ' | ' | ' | ' | 1,200,000 | 1,100,000 | ' | ' | ' | ' | 59,400,000 | 58,700,000 |
Closing cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 |
Ownership percent of the subsidiary guarantors (in percent) | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 100.00% | ' | ' | ' |
Number of properties refinanced | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' |
Number of facilities related to retirement of Hud related mortgages | ' | ' | ' | ' | 11 | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS (Narrative) (Detail) (Subsequent Event, USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Minimum | ' |
Subsequent Event [Line Items] | ' |
Impairment reserve | $1 |
Maximum | ' |
Subsequent Event [Line Items] | ' |
Impairment reserve | $1.50 |