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H.S. senior Avg
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New words:
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Financial report summary
?Risks
- A high concentration of our properties in a particular geographic area would magnify the effects of downturns in that geographic area.
- Changes in banks’ inter-bank lending rate reporting practices or the method pursuant to which LIBOR is determined may adversely affect the value of the financial obligations to be held or issued by us that are linked to LIBOR.
- Failure to complete the Merger could negatively impact our future business and financial results.
- The pendency of the Merger, including as a result of the restrictions on the operation of our and GAHR IV’s business during the period between signing the Merger Agreement and the completion of the Merger, could adversely affect our business and operations, the business and operations of GAHR IV, or both.
- In certain circumstances, either we or GAHR IV may terminate the Merger Agreement.
- We and GAHR IV each expect to incur substantial expenses related to the Merger.
- The ownership position of our stockholders and the stockholders of GAHR IV will be diluted by the REIT Merger.
- If and when the Combined Company completes a liquidity event, the market value ascribed to the shares of common stock of the Combined Company upon the liquidity event may be significantly lower than the estimated per share NAV of GAHR IV common stock or our common stock, as applicable, considered by the board of directors of GAHR IV and our board in approving and recommending the REIT Merger.
- If the REIT Merger does not qualify as a tax-free reorganization, there may be adverse tax consequences.
Management Discussion
- Our primary sources of revenue include rent generated by our leased, non-RIDEA properties, and resident fees and services revenue from our RIDEA properties. Our primary expenses include property operating expenses and rental expenses. In general, and under a normal operating environment without the disruption of the COVID-19 pandemic, we expect amounts related to our portfolio of operating properties to increase in the future based on ongoing property expansions and developments as well as fixed annual rent escalations on our portfolio of leased properties.
- We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. As of June 30, 2021, we operated through six reportable business segments: medical office buildings, hospitals, skilled nursing facilities, senior housing, senior housing — RIDEA and integrated senior health campuses.
- The COVID-19 pandemic has had a significant adverse impact on the operations of our real estate portfolio. Although we have experienced some delays in receiving rent payments from our tenants, as of June 30, 2021, we have collected substantially all of the contractual rent from our leased, non-RIDEA senior housing and skilled nursing facility tenants. In addition, substantially all of the contractual rent through June 2021 from our medical office building tenants has been received. However, given the significant ongoing uncertainty of the impact of the COVID-19 pandemic over the next 12 months, we are unable to predict the impact it will have on such tenants’ continued ability to pay rent.