Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 06, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36181 | |
Entity Registrant Name | CareTrust REIT, Inc. | |
Entity Central Index Key | 0001590717 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-3999490 | |
Entity Address, Address Line One | 905 Calle Amanecer | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | San Clemente | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92673 | |
City Area Code | 949 | |
Local Phone Number | 542-3130 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CTRE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 95,557,271 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Real estate investments, net | $ 1,404,024 | $ 1,216,237 |
Other real estate investments, net | 44,808 | 18,045 |
Assets held for sale, net | 34,590 | 0 |
Cash and cash equivalents | 5,749 | 36,792 |
Accounts and other receivables, net | 2,125 | 11,387 |
Prepaid expenses and other assets | 30,202 | 8,668 |
Deferred financing costs, net | 3,268 | 633 |
Total assets | 1,524,766 | 1,291,762 |
Liabilities and Equity: | ||
Senior unsecured notes payable, net | 295,721 | 295,153 |
Senior unsecured term loan, net | 198,661 | 99,612 |
Unsecured revolving credit facility | 65,000 | 95,000 |
Accounts payable and accrued liabilities | 16,251 | 15,967 |
Dividends payable | 21,647 | 17,783 |
Total liabilities | 597,280 | 523,515 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value; 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 and 85,867,044 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 951 | 859 |
Additional paid-in capital | 1,162,047 | 965,578 |
Cumulative distributions in excess of earnings | (235,512) | (198,190) |
Total equity | 927,486 | 768,247 |
Total liabilities and equity | $ 1,524,766 | $ 1,291,762 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (shares) | 0 | 0 |
Preferred stock, outstanding (shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, issued (shares) | 95,103,270 | 85,867,044 |
Common stock, outstanding (shares) | 95,103,270 | 85,867,044 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||||||
Rental income | $ 31,577 | $ 114,047 | ||||||
Rental income | $ 35,332 | $ 103,856 | ||||||
Tenant reimbursements | 2,990 | 8,974 | ||||||
Independent living facilities | 929 | 871 | 2,676 | 2,515 | ||||
Interest and other income | 808 | 317 | 2,450 | 1,235 | ||||
Total revenues | 33,314 | 39,510 | 119,173 | 116,580 | ||||
Expenses: | ||||||||
Depreciation and amortization | 13,420 | 11,351 | 38,759 | 34,227 | ||||
Interest expense | 7,064 | 6,805 | 21,209 | 21,182 | ||||
Property taxes | 1,025 | 2,990 | 2,307 | 8,974 | ||||
Independent living facilities | 806 | 766 | 2,232 | 2,226 | ||||
Impairment of real estate investments | 16,692 | 0 | 16,692 | 0 | ||||
Provision for loan losses | 1,076 | 0 | 1,076 | 0 | ||||
General and administrative | 3,502 | 3,088 | 11,418 | 9,638 | ||||
Total expenses | 43,585 | 25,000 | 93,693 | 76,247 | ||||
Other income: | ||||||||
Gain on sale of real estate | 217 | 0 | 217 | 2,051 | ||||
Net (loss) income | $ (10,054) | $ 19,698 | $ 16,053 | $ 14,510 | $ 13,267 | $ 14,607 | $ 25,697 | $ 42,384 |
Earnings per common share: | ||||||||
Basic (in usd per share) | $ (0.11) | $ 0.18 | $ 0.28 | $ 0.54 | ||||
Diluted (in usd per share) | $ (0.11) | $ 0.18 | $ 0.28 | $ 0.54 | ||||
Weighted-average number of common shares: | ||||||||
Basic (in shares) | 95,103 | 81,490 | 92,409 | 77,811 | ||||
Diluted (in shares) | 95,103 | 81,490 | 92,409 | 77,811 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings |
Beginning balance at Dec. 31, 2017 | $ 594,617 | $ 755 | $ 783,237 | $ (189,375) |
Beginning balance (in shares) at Dec. 31, 2017 | 75,478,202 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net | (27) | (27) | ||
Vesting of restricted common stock, net of shares withheld for employee taxes | (605) | (605) | ||
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 43,844 | |||
Amortization of stock-based compensation | 904 | 904 | ||
Common dividends | (15,608) | (15,608) | ||
Net (loss) income | 14,607 | 14,607 | ||
Ending balance at Mar. 31, 2018 | 593,888 | $ 755 | 783,509 | (190,376) |
Ending balance (in shares) at Mar. 31, 2018 | 75,522,046 | |||
Beginning balance at Dec. 31, 2017 | 594,617 | $ 755 | 783,237 | (189,375) |
Beginning balance (in shares) at Dec. 31, 2017 | 75,478,202 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | 42,384 | |||
Ending balance at Sep. 30, 2018 | 720,050 | $ 834 | 915,235 | (196,019) |
Ending balance (in shares) at Sep. 30, 2018 | 83,353,226 | |||
Beginning balance at Mar. 31, 2018 | 593,888 | $ 755 | 783,509 | (190,376) |
Beginning balance (in shares) at Mar. 31, 2018 | 75,522,046 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net | 47,567 | $ 30 | 47,537 | |
Issuance of common stock, net, (in shares) | 2,988,813 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | (684) | (684) | ||
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 39,828 | |||
Amortization of stock-based compensation | 924 | 924 | ||
Common dividends | (16,224) | (16,224) | ||
Net (loss) income | 13,267 | 13,267 | ||
Ending balance at Jun. 30, 2018 | 638,738 | $ 785 | 831,286 | (193,333) |
Ending balance (in shares) at Jun. 30, 2018 | 78,550,687 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net | 83,010 | $ 48 | 82,962 | |
Issuance of common stock, net, (in shares) | 4,771,910 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | 0 | $ 1 | (1) | |
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 30,629 | |||
Amortization of stock-based compensation | 988 | 988 | ||
Common dividends | (17,196) | (17,196) | ||
Net (loss) income | 14,510 | 14,510 | ||
Ending balance at Sep. 30, 2018 | 720,050 | $ 834 | 915,235 | (196,019) |
Ending balance (in shares) at Sep. 30, 2018 | 83,353,226 | |||
Beginning balance at Dec. 31, 2018 | 768,247 | $ 859 | 965,578 | (198,190) |
Beginning balance (in shares) at Dec. 31, 2018 | 85,867,044 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net | 47,243 | $ 24 | 47,219 | |
Issuance of common stock, net, (in shares) | 2,459,000 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | (1,495) | $ 1 | (1,496) | |
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 72,229 | |||
Amortization of stock-based compensation | 994 | 994 | ||
Common dividends | (20,011) | (20,011) | ||
Net (loss) income | 16,053 | 16,053 | ||
Ending balance at Mar. 31, 2019 | 811,031 | $ 884 | 1,012,295 | (202,148) |
Ending balance (in shares) at Mar. 31, 2019 | 88,398,273 | |||
Beginning balance at Dec. 31, 2018 | 768,247 | $ 859 | 965,578 | (198,190) |
Beginning balance (in shares) at Dec. 31, 2018 | 85,867,044 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | 25,697 | |||
Ending balance at Sep. 30, 2019 | 927,486 | $ 951 | 1,162,047 | (235,512) |
Ending balance (in shares) at Sep. 30, 2019 | 95,103,270 | |||
Beginning balance at Mar. 31, 2019 | 811,031 | $ 884 | 1,012,295 | (202,148) |
Beginning balance (in shares) at Mar. 31, 2019 | 88,398,273 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net | 148,798 | $ 67 | 148,731 | |
Issuance of common stock, net, (in shares) | 6,641,250 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes | (1,029) | (1,029) | ||
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 33,700 | |||
Amortization of stock-based compensation | 1,147 | 1,147 | ||
Common dividends | (21,508) | (21,508) | ||
Net (loss) income | 19,698 | 19,698 | ||
Ending balance at Jun. 30, 2019 | 958,137 | $ 951 | 1,161,144 | (203,958) |
Ending balance (in shares) at Jun. 30, 2019 | 95,073,223 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock, net | (78) | (78) | ||
Vesting of restricted common stock, net of shares withheld for employee taxes | 0 | |||
Vesting of restricted common stock, net of shares withheld for employee taxes (in shares) | 30,047 | |||
Amortization of stock-based compensation | 981 | 981 | ||
Common dividends | (21,500) | (21,500) | ||
Net (loss) income | (10,054) | (10,054) | ||
Ending balance at Sep. 30, 2019 | $ 927,486 | $ 951 | $ 1,162,047 | $ (235,512) |
Ending balance (in shares) at Sep. 30, 2019 | 95,103,270 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common dividends (in usd per share) | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.205 | $ 0.205 | $ 0.205 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 25,697 | $ 42,384 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including below-market ground leases) | 38,789 | 34,240 |
Amortization of deferred financing costs | 1,516 | 1,453 |
Amortization of stock-based compensation | 3,122 | 2,816 |
Straight-line rental income | (1,483) | (1,631) |
Adjustment for collectibility of rental income | 12,078 | 0 |
Noncash interest income | (31) | (228) |
Gain on sale of real estate | (217) | (2,051) |
Interest income distribution from other real estate investment | 463 | 0 |
Impairment of real estate investments | 16,692 | 0 |
Provision for loan losses | 1,076 | 0 |
Change in operating assets and liabilities: | ||
Accounts and other receivables, net | (6,043) | (5,499) |
Prepaid expenses and other assets | (348) | (159) |
Accounts payable and accrued liabilities | 3,847 | 1,065 |
Net cash provided by operating activities | 95,158 | 72,390 |
Cash flows from investing activities: | ||
Acquisitions of real estate, net of deposits applied | (298,557) | (75,621) |
Improvements to real estate | (1,230) | (5,401) |
Purchases of equipment, furniture and fixtures | (2,926) | (1,262) |
Investment in real estate mortgage and other loans receivable | (14,699) | (2,598) |
Principal payments received on real estate mortgage and other loans receivable | 11,959 | 893 |
Repayment of other real estate investment | 2,204 | 0 |
Escrow deposits for acquisitions of real estate | (22,920) | (1,000) |
Net proceeds from sales of real estate | 218 | 13,004 |
Net cash used in investing activities | (325,951) | (71,985) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock, net | 195,963 | 130,546 |
Proceeds from the issuance of senior unsecured term loan | 200,000 | 0 |
Borrowings under unsecured revolving credit facility | 235,000 | 60,000 |
Payments on unsecured revolving credit facility | (265,000) | (135,000) |
Payments on senior unsecured term loan | (100,000) | 0 |
Payments of deferred financing costs | (4,534) | 0 |
Net-settle adjustment on restricted stock | (2,524) | (1,288) |
Dividends paid on common stock | (59,155) | (45,827) |
Net cash provided by financing activities | 199,750 | 8,431 |
Net (decrease) increase in cash and cash equivalents | (31,043) | 8,836 |
Cash and cash equivalents, beginning of period | 36,792 | 6,909 |
Cash and cash equivalents, end of period | 5,749 | 15,745 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 15,648 | 15,772 |
Supplemental schedule of noncash investing and financing activities: | ||
Increase in dividends payable | 3,864 | 3,202 |
Right-of-use asset obtained in exchange for new operating lease obligation | 1,010 | 0 |
Transfer of pre-acquisition costs to acquired assets | 242 | 0 |
Increase in pre-acquisition costs payable | 137 | 0 |
Sale of real estate settled with notes receivable | $ 27,500 | $ 0 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Description of Business— CareTrust REIT, Inc.’s (“CareTrust REIT” or the “Company”) primary business consists of acquiring, financing, developing and owning real property to be leased to third-party tenants in the healthcare sector. As of September 30, 2019 , the Company owned and leased to independent operators, including The Ensign Group, Inc. (“Ensign”), 211 skilled nursing, multi-service campuses, assisted living and independent living facilities consisting of 21,583 operational beds and units located in 28 states with the highest concentration of properties located in California, Texas, Louisiana, Arizona and Idaho. The Company also owns and operates three independent living facilities which have a total of 264 units located in Texas and Utah. As of September 30, 2019 , the Company also had other real estate investments consisting of one preferred equity investment of $3.1 million and three mortgage loans receivable of $41.7 million . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —The accompanying condensed consolidated financial statements of the Company reflect, for all periods presented, the historical financial position, results of operations and cash flows of the Company and its consolidated subsidiaries consisting of (i) the net-leased skilled nursing, multi-service campuses, assisted living and independent living facilities, (ii) the operations of the three independent living facilities that the Company owns and operates; and (iii) the preferred equity investment and the mortgage loans receivable. The accompanying condensed consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the disclosures required by GAAP for a complete set of annual audited financial statements. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . In the opinion of management, all adjustments which are of a normal and recurring nature and considered necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for the interim periods are not necessarily indicative of results for the full year. All intercompany transactions and account balances within the Company have been eliminated. Recent Accounting Standards Adopted by the Company —On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), (“ASU 2016-02”) that sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). Upon adoption of ASU 2016-02 on January 1, 2019, the Company elected the following practical expedients provided by ASU No. 2018-11, Leases - Targeted Improvements, and ASU No. 2018-20, Narrow Scope Improvements for Lessors (together with ASU 2016-02, the “new lease ASUs”): • Package of practical expedients – provides that the Company is not required to reevaluate its existing or expired leases as of January 1, 2019, under the new lease ASUs. • Optional transition method practical expedient – requires the Company to apply the new lease ASUs prospectively from the adoption date of January 1, 2019. • Single component practical expedient – requires the Company to account for lease and non-lease components associated with that lease as a single component under the new lease ASUs, if certain criteria are met. • Short-term leases practical expedient – for the Company’s operating leases with a term of less than 12 months in which it is the lessee, this expedient requires the Company not to record on its balance sheet related lease liabilities and right-of-use assets. Overview related to both lessee and lessor accounting —The new lease ASUs set new criteria for determining the classification of finance leases for lessees and sales-type leases for lessors. The criteria to determine whether a lease should be accounted for as a finance (sales-type) lease include the following: (i) ownership is transferred from lessor to lessee by the end of the lease term, (ii) an option to purchase is reasonably certain to be exercised, (iii) the lease term is for the major part of the underlying asset’s remaining economic life, (iv) the present value of lease payments equals or exceeds substantially all of the fair value of the underlying asset, and (v) the underlying asset is specialized and is expected to have no alternative use at the end of the lease term. If any of these criteria is met, a lease is classified as a finance lease by the lessee and as a sales-type lease by the lessor. If none of the criteria are met, a lease is classified as an operating lease by the lessee, but may still qualify as a direct financing lease or an operating lease for the lessor. The existence of a residual value guarantee from an unrelated third party other than the lessee may qualify the lease as a direct financing lease by the lessor. Otherwise, the lease is classified as an operating lease by the lessor. The election of the package of practical expedients discussed above and the optional transition method allowed the Company not to reassess: • Whether any expired or existing contracts as of January 1, 2019 were leases or contained leases. ◦ This practical expedient is primarily applicable to entities that have contracts containing embedded leases. As of January 1, 2019, the Company had no such contracts; therefore, this practical expedient had no effect on the Company. • The lease classification for any leases expired or existing as of January 1, 2019. ◦ The election of the package of practical expedients provides that the Company is not required to reassess the classification of its leases existing as of January 1, 2019. This means that all of the Company’s leases that were classified as operating leases in accordance with the lease accounting standards in effect prior to January 1, 2019 continue to be classified as operating leases after adoption of the new lease ASUs. The Company applied the package of practical expedients consistently to all leases (i.e., regardless of whether the Company was the lessee or a lessor) that commenced before January 1, 2019. The election of this package permits the Company to “run off” its leases that commenced before January 1, 2019, for the remainder of their lease terms and to apply the new lease ASUs to leases commencing or modified after January 1, 2019. Lessor Accounting —Under the new lease ASUs, each lease agreement is evaluated to identify the lease and non-lease components at lease inception. The total consideration in the lease agreement is allocated to the lease and non-lease components based on their relative stand-alone selling prices. The new lease ASUs govern the recognition of revenue for lease components, and revenue related to non-lease components is subject to the new revenue recognition standard. Tenant recoveries for utilities, repairs and maintenance, and common area expenses are considered non-lease components. The Company generates revenues primarily by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements, under which the tenant is solely responsible for the costs related to the property. As such, the Company has concluded its leases do not contain material non-lease components. Tenant reimbursements related to property taxes and insurance are neither lease nor non-lease components under the new lease ASUs. If a lessee makes payments for taxes and insurance directly to a third party on behalf of a lessor, lessors are required to exclude them from variable payments and from recognition in the lessors’ statements of operations. Otherwise, tenant recoveries for taxes and insurance are classified as additional rental income recognized by the lessor on a gross basis in its statements of operations. On January 1, 2019, the Company elected the single component practical expedient, which allows a lessor, by class of underlying asset, not to allocate the total consideration to the lease and non-lease components based on their relative stand-alone selling prices. This single component practical expedient requires the Company to account for the lease component and non-lease component(s) associated with that lease as a single component if (i) the timing and pattern of transfer of the lease component and the non-lease component(s) associated with it are the same and (ii) the lease component would be classified as an operating lease if it were accounted for separately. If the Company determines that the lease component is the predominant component, the Company accounts for the single component as an operating lease in accordance with the new lease ASUs. Conversely, the Company is required to account for the combined component under the new revenue recognition standard if the Company determines that the non-lease component is the predominant component. As a result of this assessment, rental revenues and tenant recoveries from the lease of real estate assets that qualify for this expedient are accounted for as a single component under the new lease ASUs, with tenant recoveries primarily as variable consideration. Tenant recoveries that do not qualify for the single component practical expedient and are considered non-lease components are accounted for under the revenue recognition standard. The components of the Company’s operating leases qualify for the single component presentation. For the three and nine months ended September 30, 2018 , the Company recognized tenant recoveries for real estate taxes of $3.0 million and $9.0 million , respectively, which were classified as tenant reimbursements on the Company’s condensed consolidated statements of operations. Prior to the adoption of Accounting Standards Codification (“ASC”) 842, the Company recognized tenant recoveries as tenant reimbursement revenues regardless of whether the third party was paid by the lessor or lessee. Effective January 1, 2019, such tenant recoveries are recognized to the extent that the Company pays the third party directly and classified as rental income on the Company’s condensed consolidated statements of operations. Due to the application of the new lease ASUs, the Company recognized, on a gross basis, real estate taxes of $0.8 million and $2.1 million , respectively, for the three and nine months ended September 30, 2019 . Under the new lease ASUs, the Company’s assessment of collectability of its tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. Such write-offs are recorded as increases or decreases through rental income on the Company’s condensed consolidated statements of operations. For the three and nine months ended September 30, 2019 , the Company recorded $12.1 million of adjustments to rental income related to recognized rental income in the current quarter and prior periods. See Note 3, Real Estate Investments, Net for further detail. Lessee Accounting —Under the new lease ASUs, lessees are required to apply a dual approach by classifying leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, which corresponds to a similar evaluation performed by lessors. In addition to this classification, a lessee is also required to recognize a right-of-use asset and a lease liability for all leases regardless of their classification, whereas a lessor is not required to recognize a right-of-use asset and a lease liability for any operating leases. As of September 30, 2019 , the Company’s lease liability related to its ground lease arrangements for which it is the lessee totaled approximately $1.0 million with a weighted average remaining lease term of 73 years . While these ground leases were subject to the new lease ASUs effective January 1, 2019, the lease liability and corresponding right-of-use asset and lease expense do not have a material effect on the Company’s condensed consolidated financial statements. The Company has not recognized a right-of-use asset and/or lease liability for leases with a term of 12 months or less and without an option to purchase the underlying asset. Estimates and Assumptions —The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that the assumptions and estimates used in preparation of the underlying consolidated financial statements are reasonable. Actual results, however, could differ from those estimates and assumptions. Real Estate Acquisition Valuation — In accordance with ASC 805, Business Combinations , the Company’s acquisitions of real estate investments generally do not meet the definition of a business, and are treated as asset acquisitions. The assets acquired and liabilities assumed are measured at their acquisition date relative fair values. Acquisition costs are capitalized as incurred. The Company allocates the acquisition costs to the tangible assets, identifiable intangible assets/liabilities and assumed liabilities on a relative fair value basis. The Company assesses fair value based on available market information, such as capitalization and discount rates, comparable sale transactions and relevant per square foot or unit cost information. A real estate asset’s fair value may be determined utilizing cash flow projections that incorporate such market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, as well as market and economic conditions. The fair value of tangible assets of an acquired property is based on the value of the property as if it is vacant. As part of the Company’s real estate acquisitions, the Company may commit to provide contingent payments to a seller or lessee (e.g., an earn-out payable upon the applicable property achieving certain financial metrics). Typically, when the contingent payments are funded, cash rent is increased by the amount funded multiplied by a rate stipulated in the agreement. Generally, if the contingent payment is an earn-out provided to the seller, the payment is capitalized to the property’s basis. If the contingent payment is an earn-out provided to the lessee, the payment is recorded as a lease incentive and is amortized as a yield adjustment over the life of the lease. Impairment of Long-Lived Assets —At each reporting period, management evaluates the Company’s real estate investments for impairment indicators, including the evaluation of the useful lives of the Company’s assets. Management also assesses the carrying value of the Company’s real estate investments whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The judgment regarding the existence of impairment indicators is based on factors such as, but not limited to, market conditions, operator performance and legal structure. If indicators of impairment are present, management evaluates the carrying value of the related real estate investments in relation to the future undiscounted cash flows of the underlying facilities. Provisions for impairment losses related to long-lived assets are recognized when expected future undiscounted cash flows are determined to be less than the carrying values of the assets. An adjustment is made to the net carrying value of the real estate investments for the excess of carrying value over fair value. All impairments are taken as a period cost at that time, and depreciation is adjusted going forward to reflect the new value assigned to the asset. In the event of impairment, the fair value of the real estate investment is determined by market research, which includes valuing the property in its current use as well as other alternative uses, and involves significant judgment. Management’s estimates of cash flows and fair values of the properties are based on current market conditions and consider matters such as rental rates and occupancies for comparable properties, recent sales data for comparable properties, and, where applicable, contracts or the results of negotiations with purchasers or prospective purchasers. If the Company meets the criteria to classify the real estate properties as held for sale, which entails a formal plan to sell the properties that is expected to be complete within one year, among other criteria, the Company writes down the excess of the carrying value over the estimated fair value less costs to sell. The Company’s ability to accurately estimate future cash flows and estimate and allocate fair values impacts the timing and recognition of impairments. While the Company believes its assumptions are reasonable, changes in these assumptions may have a material impact on financial results. Prepaid expenses and other assets —Prepaid expenses and other assets consist of prepaid expenses, deposits, pre-acquisition costs and other loans receivable. Included in other loans receivable is a bridge loan to Priority Life Care, LLC (“Priority”) under which the Company agreed to fund up to $1.4 million until the earlier of (i) October 31, 2019, (ii) the date that a new credit facility is established such that the borrower may submit draw requests to the applicable lender, or (iii) the date on which Priority’s lease is terminated with respect to any facility. Borrowings under the bridge loan accrue interest at an annual base rate of 8.0% . During the quarter ended September 30, 2019, the Company determined that the remaining contractual obligations under the bridge loan agreement to Priority were not collectible and recorded a $1.1 million provision for loan losses in the Company’s condensed consolidated statements of operations. Also included in prepaid expenses and other assets at September 30, 2019 were $22.7 million in escrow deposits for acquisitions completed on October 1, 2019. See Note 13, Subsequent Events for additional information. Income Taxes —The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). The Company believes it has been organized and has operated, and the Company intends to continue to operate, in a manner to qualify for taxation as a REIT under the Code. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute to its stockholders at least 90% of the Company’s annual REIT taxable income (computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes as qualifying dividends all of its REIT taxable income to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Recent Accounting Pronouncements —In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Subtopic 326) (“ASU 2016-13”) that changes the impairment model for most financial instruments by requiring companies to recognize an allowance for expected credit losses, rather than incurred losses as required currently by the other-than-temporary impairment model. ASU 2016-13 will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans receivable, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures (e.g., loan commitments). In November 2018, the FASB released ASU No. 2018-19, Codification Improvements to Topic 326 Financial Instruments - Credit Losses (“ASU 2018-19”). ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of ASU 2016-13. Instead, impairment of receivables arising from operating leases should be accounted for under Subtopic 842-30 “Leases - Lessor.” ASU 2016-13 is effective for reporting periods beginning after December 15, 2019, with early adoption permitted, and will be applied as a cumulative adjustment to retained earnings as of the effective date. The Company plans to adopt ASU 2016-13 on January 1, 2020. The Company is currently assessing the potential effect the adoption of ASU 2016-13 will have on the Company’s condensed consolidated financial statements. |
Real Estate Investments, Net
Real Estate Investments, Net | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate Investments, Net | REAL ESTATE INVESTMENTS, NET The following table summarizes the Company’s investment in owned properties as of September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, 2019 December 31, 2018 Land $ 198,028 $ 166,948 Buildings and improvements 1,385,223 1,201,209 Integral equipment, furniture and fixtures 92,588 87,623 Identified intangible assets 1,400 2,382 Real estate investments 1,677,239 1,458,162 Accumulated depreciation and amortization (273,215 ) (241,925 ) Real estate investments, net $ 1,404,024 $ 1,216,237 As of September 30, 2019 , 93 of the Company’s 214 facilities were leased to subsidiaries of Ensign under eight master leases (the “Ensign Master Leases”) which commenced on June 1, 2014. The obligations under the Ensign Master Leases are guaranteed by Ensign. A default by any subsidiary of Ensign with regard to any facility leased pursuant to an Ensign Master Lease will result in a default under all of the Ensign Master Leases. As of September 30, 2019 , annualized rental revenues from the Ensign Master Leases were $61.0 million and are escalated annually by an amount equal to the product of (1) the lesser of the percentage change in the Consumer Price Index (“CPI”) (but not less than zero ) or 2.5% , and (2) the prior year’s rent. In addition to rent, the subsidiaries of Ensign that are tenants under the Ensign Master Leases are solely responsible for the costs related to the leased properties (including property taxes, insurance, and maintenance and repair costs). As of September 30, 2019 , 118 of the Company’s 214 facilities were leased to various other operators under triple-net leases. All of these leases contain annual escalators based on CPI, some of which are subject to a cap, or fixed rent escalators. The Company’s three remaining properties as of September 30, 2019 are the independent living facilities that the Company owns and operates. On October 1, 2019, Ensign completed its previously announced separation of its home health and hospice operations and substantially all of its senior living operations into a separate independent publicly traded company through the distribution of shares of common stock of The Pennant Group, Inc. (“Pennant” and, such separation, the “Pennant Spin”). See Note 13, Subsequent Events for additional information regarding the Company’s facilities leased to subsidiaries of Ensign subsequent to the Pennant Spin. As of September 30, 2019 , the Company’s total future minimum rental revenues for all of its tenants, excluding operating expense reimbursements, were (dollars in thousands): Year Amount 2019 (three months) $ 42,132 2020 169,209 2021 170,221 2022 170,587 2023 170,807 2024 170,952 Thereafter 1,111,769 $ 2,005,677 As of December 31, 2018 , the Company’s total future minimum rental revenues for all of its tenants, excluding operating expense reimbursements, were (dollars in thousands): Year Amount 2019 $ 146,010 2020 146,560 2021 147,132 2022 147,719 2023 148,169 Thereafter 1,055,012 $ 1,790,602 The following table summarizes components of the Company’s rental income (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 Rental Income Contractual rent due (1) $ 43,109 $ 124,642 Straight-line rent 546 1,483 Adjustment for collectibility of rental income (2) (12,078 ) (12,078 ) Total $ 31,577 $ 114,047 (1) Initial cash rent including operating expense reimbursements adjusted for rental escalators and increases due to landlord funded capital improvements. (2) In accordance with the new lease ASUs, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from five operators through maturity. As such, the Company reversed $7.8 million of contractual rent, $3.5 million of straight-line rent and $0.8 million of property taxes during the three months ended September 30, 2019. If lease payments are subsequently deemed probable of collection, the Company increases rental income for such recoveries. Recent Real Estate Acquisitions The following table summarizes the Company’s acquisitions for the nine months ended September 30, 2019 (dollars in thousands): Type of Property Purchase Price (1) Initial Annual Cash Rent (2) Number of Properties Number of Beds/Units (3) Skilled nursing $ 246,099 $ 22,129 16 2,029 Multi-service campuses 45,176 4,088 3 542 Assisted living 12,596 1,031 1 96 Total $ 303,871 $ 27,248 20 2,667 (1) Purchase price includes capitalized acquisition costs. (2) Initial annual cash rent excludes ground lease income. (3) The number of beds/units includes operating beds at acquisition date. Lease Amendments Trillium Lease Termination and New Master Lease. On July 15, 2019, the Company terminated its existing master lease (the “Original Trillium Lease”) with affiliates of Trillium Healthcare Group, LLC (“Trillium”), which covered ten properties in Iowa, seven properties in Ohio and one property in Georgia. On August 16, 2019, the Company entered into a new master lease (the “New Trillium Lease”) with Trillium’s Iowa and Georgia affiliates covering the ten properties in Iowa and the one property in Georgia. The Company recorded an adjustment to reduce rental income for accounts and other receivables by approximately $3.8 million in the three months ended September 30, 2019. On September 1, 2019, four of the seven skilled nursing Ohio properties operated by Trillium under the Original Trillium Lease were transferred to affiliates of Providence Group, Inc. (“Providence”). In connection with the transfer, the Company amended its triple-net master lease with Providence. The amended lease has a remaining initial term of approximately 13 years , with two five-year renewal options and CPI-based rent escalators. Annual cash rent under the amended lease increased by approximately $2.1 million . Impairment of Real Estate Investments and Assets Held for Sale On September 1, 2019, the Company sold three of the seven skilled nursing Ohio properties operated by Trillium under the Original Trillium Lease for a purchase price of $28.0 million . During the three months ended September 30, 2019 and prior to the disposition, the Company recorded an impairment expense of approximately $7.8 million . In connection with the sale, the Company provided affiliates of CommuniCare Family of Companies (“CommuniCare”), the purchaser of the three Ohio properties, with a mortgage loan secured by the three Ohio properties for approximately $26.5 million . See Note 4, Other Real Estate Investments for additional information. As of September 30, 2019, the Company met the criteria to classify six skilled nursing facilities operated by affiliates of Metron Integrated Health Systems (“Metron”) as held for sale, which resulted in an impairment expense of approximately $8.8 million to reduce the carrying value to fair value less costs to sell the properties. The assets held for sale of $34.6 million are primarily comprised of real estate assets. The fair value of the assets impaired during the three months ended September 30, 2019 was based on contractual sales prices, which are considered to be Level 2 measurements within the fair value hierarchy. |
Other Real Estate Investments
Other Real Estate Investments | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Other Real Estate Investments | OTHER REAL ESTATE INVESTMENTS Preferred Equity Investments —In July 2016, the Company completed a $2.2 million preferred equity investment with an affiliate of Cascadia Development, LLC. The preferred equity investment yielded a return equal to prime plus 9.5% but in no event less than 12.0% calculated on a quarterly basis on the outstanding carrying value of the investment. The investment was used to develop a 99 -bed skilled nursing facility in Nampa, Idaho. In connection with its investment, the Company held an option to purchase the development at a fixed-formula price upon stabilization, with an initial lease yield of at least 9.0% . The project was completed in the fourth quarter 2017 and began lease-up during the first quarter of 2018. In June 2019, the Company purchased the skilled nursing facility for approximately $16.2 million , inclusive of transaction costs. The Company paid $12.9 million after receiving back its initial investment of $2.2 million and cumulative contractual preferred return through June 18, 2019, the acquisition date, of $1.1 million , of which $0.6 million was recognized as interest income during the nine months ended September 30, 2019 . In September 2016, the Company completed a $2.3 million preferred equity investment with an affiliate of Cascadia Development, LLC. The preferred equity investment yields a return equal to prime plus 9.5% but in no event less than 12.0% calculated on a quarterly basis on the outstanding carrying value of the investment. The investment was used to develop a 99 -bed skilled nursing facility in Boise, Idaho. In connection with its investment, the Company holds an option to purchase the development at a fixed-formula price upon stabilization, with an initial lease yield of at least 9.0% . The project was completed in the first quarter 2018 and began lease-up in the second quarter of 2018. The Company recognized no interest income from its preferred equity investments in the three months ended September 30, 2019 and 2018. During the nine months ended September 30, 2019 , the Company recognized $0.6 million in interest income from its preferred equity investments, including $0.4 million for unrecognized preferred return related to prior periods. During the nine months ended September 30, 2018 , the Company recognized $0.2 million in interest income from its preferred equity investments. Performing Mortgage Loans Receivable —In October 2017, the Company provided an affiliate of Providence a mortgage loan secured by a skilled nursing facility for approximately $12.5 million inclusive of transaction costs, which bears a fixed interest rate of 9% . The mortgage loan, which requires Providence to make monthly principal and interest payments, is set to mature on October 26, 2020 and has an option to be prepaid before the maturity date. In February 2019, the Company provided affiliates of Covenant Care a mortgage loan secured by first mortgages on five skilled nursing facilities for approximately $11.4 million , at an annual interest rate of 9% . The loan required monthly interest payments, was set to mature on February 11, 2020, and included two , six -month extension options. In the three months ended September 30, 2019 , Covenant Care exercised its option to prepay the loan in full, and prepayment was received by the Company. In July 2019, the Company provided MCRC, LLC a real estate loan secured by a 176 bed skilled nursing facility in Manteca, California for $3.0 million , which bears a fixed interest rate of 8% and requires monthly interest payments. Concurrently, the Company entered into a purchase and sale agreement to purchase the Manteca facility from MCRC, LLC for approximately $16.4 million subject to normal diligence and other contingencies. The loan documents provide for a maturity date of the earlier to occur of the closing date of the acquisition, or five business days following the termination of the purchase and sale agreement. MCRC, LLC breached its obligation to sell the Manteca facility to the Company on the terms outlined in the purchase and sale agreement and, as a result, the Company has commenced non-judicial foreclosure proceedings with respect to the Manteca facility. The Company expects the Manteca facility to go to auction in early 2020 at which point the Company expects to either purchase the facility or be repaid the loan and accrued interest. In September 2019, the Company provided affiliates of CommuniCare a $26.5 million loan secured by mortgages on the three skilled nursing facilities sold to CommuniCare, as discussed in Note 3, Real Estate Investments, which bears a fixed interest rate of 10% . The mortgage loan, which requires CommuniCare to make monthly interest payments, is set to mature on February 29, 2020 and has an option to be prepaid before the maturity date. Given the structure of the arrangement the Company has concluded that the acquiring entities whom are joint and severally liable for the loan constitute variable interest entities. The loan includes standard lender protective rights and does not allow the Company to control the entities. During the three and nine months ended September 30, 2019 , the Company recognized $0.8 million and $1.8 million , respectively, of interest income related to the mortgage loans. During the three and nine months ended September 30, 2018 , the Company recognized $0.3 million and $0.9 million , respectively, of interest income related to the mortgage loans. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial Instruments: Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the face values, carrying amounts and fair values of the Company’s financial instruments as of September 30, 2019 and December 31, 2018 using Level 2 inputs for the Notes (as defined in Note 6, Debt, below), and Level 3 inputs, for all other financial instruments, is as follows (dollars in thousands): September 30, 2019 December 31, 2018 Face Carrying Fair Face Carrying Fair Financial assets: Preferred equity investments $ 2,327 $ 3,079 $ 3,540 $ 4,531 $ 5,746 $ 6,246 Mortgage loans receivable 41,773 41,728 41,773 12,375 12,299 12,375 Financial liabilities: Senior unsecured notes payable $ 300,000 $ 295,721 $ 309,750 $ 300,000 $ 295,153 $ 289,500 Cash and cash equivalents, accounts and other receivables, other loans receivable, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short-term nature of these instruments. Preferred equity investments : The fair values of the preferred equity investments were estimated using an internal valuation model that considered the expected future cash flows of the investment, the underlying collateral value, market interest rates and other credit enhancements. Mortgage loans receivable : The fair values of the mortgage loans receivable were estimated using an internal valuation model that considered the expected future cash flows of the investments, the underlying collateral value, market interest rates and other credit enhancements. Senior unsecured notes payable : The fair value of the Notes was determined using third-party quotes derived from orderly trades. Unsecured revolving credit facility and senior unsecured term loan: The fair values approximate their carrying values as the interest rates are variable and approximate prevailing market interest rates for similar debt arrangements. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes the balance of the Company’s indebtedness as of September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, 2019 December 31, 2018 Principal Amount Deferred Loan Fees (1) Carrying Value Principal Amount Deferred Loan Fees (1) Carrying Value Senior unsecured notes payable $ 300,000 $ (4,279 ) $ 295,721 $ 300,000 $ (4,847 ) $ 295,153 Senior unsecured term loan 200,000 (1,339 ) 198,661 100,000 (388 ) 99,612 Unsecured revolving credit facility 65,000 — 65,000 95,000 — 95,000 $ 565,000 $ (5,618 ) $ 559,382 $ 495,000 $ (5,235 ) $ 489,765 (1) Deferred loan fees are not shown net for the unsecured revolving credit facility and are included in deferred financing costs, net on the accompanying condensed consolidated balance sheets. Senior Unsecured Notes Payable On May 10, 2017, the Company’s wholly owned subsidiary, CTR Partnership, L.P. (the “Operating Partnership”), and its wholly owned subsidiary, CareTrust Capital Corp. (together with the Operating Partnership, the “Issuers”), completed an underwritten public offering of $300.0 million aggregate principal amount of 5.25% Senior Notes due 2025 (the “Notes”). The Notes were issued at par, resulting in gross proceeds of $300.0 million and net proceeds of approximately $294.0 million after deducting underwriting fees and other offering expenses. The Notes mature on June 1, 2025 and bear interest at a rate of 5.25% per year. Interest on the Notes is payable on June 1 and December 1 of each year. The Issuers may redeem the Notes any time before June 1, 2020 at a redemption price of 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest on the Notes, if any, to, but not including, the redemption date, plus a “make-whole” premium described in the indenture governing the Notes and, at any time on or after June 1, 2020, at the redemption prices set forth in the indenture. At any time on or before June 1, 2020, up to 40% of the aggregate principal amount of the Notes may be redeemed with the net proceeds of certain equity offerings if at least 60% of the originally issued aggregate principal amount of the Notes remains outstanding. In such case, the redemption price will be equal to 105.25% of the aggregate principal amount of the Notes to be redeemed plus accrued and unpaid interest, if any, to, but not including, the redemption date. If certain changes of control of the Company occur, holders of the Notes will have the right to require the Issuers to repurchase their Notes at 101% of the principal amount plus accrued and unpaid interest, if any, to, but not including, the repurchase date. The obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by the Company and certain of the Company’s wholly owned existing and, subject to certain exceptions, future material subsidiaries (other than the Issuers); provided, however, that such guarantees are subject to automatic release under certain customary circumstances, as described in Note 12, Summarized Condensed Consolidating Information . The indenture contains customary covenants such as limiting the ability of the Company and its restricted subsidiaries to: incur or guarantee additional indebtedness; incur or guarantee secured indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock; make certain investments or other restricted payments; sell assets; enter into transactions with affiliates; merge or consolidate or sell all or substantially all of their assets; and create restrictions on the ability of the Issuers and their restricted subsidiaries to pay dividends or other amounts to the Issuers. The indenture also requires the Company and its restricted subsidiaries to maintain a specified ratio of unencumbered assets to unsecured indebtedness. These covenants are subject to a number of important and significant limitations, qualifications and exceptions. The indenture also contains customary events of default. As of September 30, 2019 , the Company was in compliance with all applicable financial covenants under the indenture. Unsecured Revolving Credit Facility and Term Loan On August 5, 2015, the Company, CareTrust GP, LLC, the Operating Partnership, as the borrower, and certain of its wholly owned subsidiaries entered into a credit and guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender, and the lenders party thereto (the “Prior Credit Agreement”). As later amended on February 1, 2016, the Prior Credit Agreement provided the following: (i) a $400.0 million unsecured asset based revolving credit facility (the “Prior Revolving Facility”), (ii) a $100.0 million non-amortizing unsecured term loan (the “Prior Term Loan” and, together with the Prior Revolving Facility, the “Prior Credit Facility”), and (iii) a $250.0 million uncommitted incremental facility. The Prior Revolving Facility was scheduled to mature on August 5, 2019, subject to two , six -month extension options. The Prior Term Loan was scheduled to mature on February 1, 2023 and could be prepaid at any time subject to a 2% premium in the first year after issuance and a 1% premium in the second year after issuance. On February 8, 2019, the Operating Partnership, as the borrower, the Company, as guarantor, CareTrust GP, LLC, and certain of the Operating Partnership’s wholly owned subsidiaries entered into an amended and restated credit and guaranty agreement with KeyBank National Association, as administrative agent, an issuing bank and swingline lender, and the lenders party thereto (the “Amended Credit Agreement”). The Amended Credit Agreement, which amended and restated the Prior Credit Agreement, provides for: (i) an unsecured revolving credit facility (the “Revolving Facility”) with revolving commitments in an aggregate principal amount of $600.0 million, including a letter of credit subfacility for 10% of the then available revolving commitments and a swingline loan subfacility for 10% of the then available revolving commitments and (ii) an unsecured term loan credit facility (the “Term Loan” and, together with the Revolving Facility, the “Amended Credit Facility”) in an aggregate principal amount of $200.0 million. Borrowing availability under the Revolving Facility is subject to no default or event of default under the Amended Credit Agreement having occurred at the time of borrowing. The proceeds of the Term Loan were used, in part, to repay in full all outstanding borrowings under the Prior Term Loan and Prior Revolving Facility under the Prior Credit Agreement. Future borrowings under the Amended Credit Facility will be used for working capital purposes, for capital expenditures, to fund acquisitions and for general corporate purposes. The interest rates applicable to loans under the Revolving Facility are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.10% to 0.55% per annum or LIBOR plus a margin ranging from 1.10% to 1.55% per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt). The interest rates applicable to loans under the Term Loan are, at the Operating Partnership’s option, equal to either a base rate plus a margin ranging from 0.50% to 1.20% per annum or LIBOR plus a margin ranging from 1.50% to 2.20% per annum based on the debt to asset value ratio of the Company and its consolidated subsidiaries (subject to decrease at the Operating Partnership’s election if the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt). In addition, the Operating Partnership will pay a facility fee on the revolving commitments under the Revolving Facility ranging from 0.15% to 0.35% per annum, based on the debt to asset value ratio of the Company and its consolidated subsidiaries (unless the Company obtains certain specified investment grade ratings on its senior long-term unsecured debt and the Operating Partnership elects to decrease the applicable margin as described above, in which case the Operating Partnership will pay a facility fee on the revolving commitments ranging from 0.125% to 0.30% per annum based on the credit ratings of the Company’s senior long-term unsecured debt). As of September 30, 2019 , the Operating Partnership had $200.0 million outstanding under the Term Loan and $65.0 million outstanding under the Revolving Facility. The Revolving Facility has a maturity date of February 8, 2023, and includes, at the sole discretion of the Operating Partnership, two , six -month extension options. The Term Loan has a maturity date of February 8, 2026. The Amended Credit Facility is guaranteed, jointly and severally, by the Company and its wholly owned subsidiaries that are party to the Amended Credit Agreement (other than the Operating Partnership). The Amended Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend organizational documents and pay certain dividends and other restricted payments. The Amended Credit Agreement requires the Company to comply with financial maintenance covenants to be tested quarterly, consisting of a maximum debt to asset value ratio, a minimum fixed charge coverage ratio, a minimum tangible net worth, a maximum cash distributions to operating income ratio, a maximum secured debt to asset value ratio, a maximum secured recourse debt to asset value ratio, a maximum unsecured debt to unencumbered properties asset value ratio, a minimum unsecured interest coverage ratio and a minimum rent coverage ratio. The Amended Credit Agreement also contains certain customary events of default, including the failure to make timely payments under the Amended Credit Facility or other material indebtedness, the failure to satisfy certain covenants (including the financial maintenance covenants), the occurrence of change of control and specified events of bankruptcy and insolvency. As of September 30, 2019 , the Company was in compliance with all applicable financial covenants under the Amended Credit Agreement. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Common Stock Public Offering of Common Stock —On April 15, 2019, the Company completed an underwritten public offering of 6,641,250 shares of its common stock, par value $0.01 per share, at an initial price to the public of $23.35 , including 866,250 shares of common stock sold pursuant to the full exercise of an option to purchase additional shares of common stock granted to the underwriters, resulting in approximately $149.0 million in net proceeds, after deducting the underwriting discount and offering expenses. The Company used the proceeds from the offering to repay a portion of the outstanding borrowings on its Revolving Facility, which had been used to fund a portion of the purchase price of acquisitions in the second quarter of 2019. At-The-Market Offering —On March 4, 2019, the Company entered into a new equity distribution agreement to issue and sell, from time to time, up to $300.0 million in aggregate offering price of its common stock through an “at-the-market” equity offering program (the “New ATM Program”). In connection with the entry into the equity distribution agreement and the commencement of the New ATM Program, the Company’s “at-the-market” equity offering program pursuant to the Company’s prior equity distribution agreement, dated as of May 17, 2017, was terminated (the “Prior ATM Program”). There was no New ATM Program activity for the three and nine months ended September 30, 2019 . The following table summarizes the Prior ATM Program activity for 2019 (in thousands, except per share amounts): For the Three Months Ended March 31, 2019 Number of shares 2,459 Average sales price per share $ 19.48 Gross proceeds* $ 47,893 *Total gross proceeds is before $0.6 million of commissions paid to the sales agents during the three months ended March 31, 2019 under the Prior ATM Program. As of September 30, 2019 , the Company had $300.0 million available for future issuances under the New ATM Program. Dividends on Common Stock —The following table summarizes the cash dividends on the Company’s common stock declared by the Company’s Board of Directors for the first nine months of 2019 (dollars in thousands, except per share amounts): For the Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 Dividends declared per share $ 0.225 $ 0.225 $ 0.225 Dividends payment date April 15, 2019 July 15, 2019 October 15, 2019 Dividends payable as of record date $ 20,011 $ 21,508 $ 21,500 Dividends record date March 29, 2019 June 28, 2019 September 30, 2019 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION All stock-based awards are subject to the terms of the CareTrust REIT, Inc. and CTR Partnership, L.P. Incentive Award Plan (the “Plan”). The Plan provides for the granting of stock-based compensation, including stock options, restricted stock, performance awards, restricted stock units and other incentive awards to officers, employees and directors in connection with their employment with or services provided to the Company. Restricted Stock Awards — In connection with the separation of Ensign’s healthcare business and its real estate business into two separate and independently publicly traded companies (the “Spin-Off”), employees of Ensign who had unvested shares of restricted stock were given one share of CareTrust REIT unvested restricted stock totaling 207,580 shares at the Spin-Off. These restricted shares are subject to a time vesting provision only and the Company does not recognize any stock compensation expense associated with these awards. As of September 30, 2019 , there were 1,760 unvested restricted stock awards outstanding that were issued in connection with the Spin-Off. In February 2019, the Compensation Committee of the Company’s Board of Directors granted 91,440 shares of restricted stock to officers and employees. Each share had a fair market value on the date of grant of $22.00 per share, based on the closing market price of the Company’s common stock on that date, and the shares vest in four equal annual installments beginning on the first anniversary of the grant date. Additionally, in February 2019, the Compensation Committee granted 71,440 performance stock awards to officers. Each share had a fair market value on the date of grant of $22.00 per share, based on the closing market price of the Company’s common stock on that date. Performance stock awards are subject to both time and performance based conditions and vest over a one - to four -year period. The amount of performance awards that will ultimately vest is dependent on the Company’s Normalized Funds from Operations (“NFFO”) per share, as defined by the Compensation Committee, meeting or exceeding fiscal year over year growth of 5.0% or greater. In May 2019, the Compensation Committee of the Company's Board of Directors granted 17,749 shares of restricted stock to members of the Board of Directors. Each share had a fair market value on the date of grant of $24.23 per share, based on the closing market price of the Company's common stock on that date, and the shares vest in full on the earlier to occur of April 30, 2020 or the Company’s 2020 Annual Meeting of Stockholders. The following table summarizes the stock-based compensation expense recognized (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Stock-based compensation expense $ 981 $ 988 $ 3,122 $ 2,816 As of September 30, 2019 , there was $5.2 million of unamortized stock-based compensation expense related to unvested awards and the weighted-average remaining vesting period of such awards was 2.3 years . |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The following table presents the calculation of basic and diluted earnings per common share (“EPS”) for the Company’s common stock for the three and nine months ended September 30, 2019 and 2018 , and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) income $ (10,054 ) $ 14,510 $ 25,697 $ 42,384 Less: Net income allocated to participating securities (66 ) (84 ) (231 ) (282 ) Numerator for basic and diluted earnings available to common stockholders $ (10,120 ) $ 14,426 $ 25,466 $ 42,102 Denominator: Weighted-average basic common shares outstanding 95,103 81,490 92,409 77,811 Weighted-average diluted common shares outstanding 95,103 81,490 92,409 77,811 Earnings per common share, basic $ (0.11 ) $ 0.18 $ 0.28 $ 0.54 Earnings per common share, diluted $ (0.11 ) $ 0.18 $ 0.28 $ 0.54 The Company’s unvested restricted shares associated with its incentive award plan and unvested restricted shares issued to employees of Ensign at the Spin-Off have been excluded from the above calculation of earnings per diluted share for the three and nine months ended September 30, 2019 and 2018 , when their inclusion would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company and its subsidiaries are and may become from time to time a party to various claims and lawsuits arising in the ordinary course of business, which are not individually or in the aggregate anticipated to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Claims and lawsuits may include matters involving general or professional liability asserted against the Company’s tenants, which are the responsibility of the Company’s tenants and for which the Company is entitled to be indemnified by its tenants under the insurance and indemnification provisions in the applicable leases. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | CONCENTRATION OF RISK Major operator concentrations – As of September 30, 2019 , Ensign leased 93 skilled nursing, multi-service campuses, assisted living and independent living facilities which had a total of 9,975 operational beds and are located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Texas, Utah and Washington. The four states in which Ensign leases the highest concentration of properties are California, Texas, Utah and Arizona as of September 30, 2019. During each of the three and nine months ended September 30, 2019 , Ensign represented 50% and 40% , respectively, of the Company’s rental income, exclusive of operating expense reimbursements. During each of the three and nine months ended September 30, 2018 , Ensign represented 42% of the Company’s rental income, exclusive of operating expense reimbursements. On October 1, 2019, Ensign completed the Pennant Spin. See Note 13, Subsequent Events for additional information regarding the Company’s facilities leased to Ensign subsequent to the Pennant Spin. |
Summarized Condensed Consolidat
Summarized Condensed Consolidating Information | 9 Months Ended |
Sep. 30, 2019 | |
Summarized Condensed Consolidating Information [Abstract] | |
Summarized Condensed Consolidating Information | SUMMARIZED CONDENSED CONSOLIDATING INFORMATION The Notes issued by the Operating Partnership and CareTrust Capital Corp. on May 10, 2017 are jointly and severally, fully and unconditionally, guaranteed by CareTrust REIT, Inc., as the parent guarantor (the “Parent Guarantor”), and the wholly owned subsidiaries of the Parent Guarantor other than the Issuers (collectively, the “Subsidiary Guarantors” and, together with the Parent Guarantor, the “Guarantors”), subject to automatic release under certain customary circumstances, including if the Subsidiary Guarantor is sold or sells all or substantially all of its assets, the Subsidiary Guarantor is designated “unrestricted” for covenant purposes under the indenture governing the Notes, the Subsidiary Guarantor’s guarantee of other indebtedness which resulted in the creation of the guarantee of the Notes is terminated or released, or the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied. The following provides information regarding the entity structure of the Parent Guarantor, the Issuers and the Subsidiary Guarantors: CareTrust REIT, Inc. – The Parent Guarantor was formed on October 29, 2013 in anticipation of the separation of Ensign’s healthcare business and its real estate business into two separate and independently publicly traded companies (the “Spin-Off”) and was a wholly owned subsidiary of Ensign prior to the effective date of the Spin-Off on June 1, 2014. The Parent Guarantor did not conduct any operations or have any business prior to the date of the consummation of the Spin-Off related transactions. CTR Partnership, L.P. and CareTrust Capital Corp. – The Issuers, each of which is a wholly owned subsidiary of the Parent Guarantor, were formed on May 8, 2014 and May 9, 2014 , respectively, in anticipation of the Spin-Off and the related transactions. The Issuers did not conduct any operations or have any business prior to the date of the consummation of the Spin-Off related transactions. Subsidiary Guarantors – The Subsidiary Guarantors consist of all of the subsidiaries of the Parent Guarantor other than the Issuers. Pursuant to Rule 3-10 of Regulation S-X, the following summarized consolidating information is provided for the Parent Guarantor, the Issuers, and the Subsidiary Guarantors. There are no subsidiaries of the Company other than the Issuers and the Subsidiary Guarantors. This summarized financial information has been prepared from the financial statements of the Company and the books and records maintained by the Company. CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2019 (in thousands, except share and per share amounts) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Assets: Real estate investments, net $ — $ 878,848 $ 525,176 $ — $ 1,404,024 Other real estate investments, net — 41,728 3,080 — 44,808 Assets held for sale, net — 34,590 — — 34,590 Cash and cash equivalents — 5,749 — — 5,749 Accounts and other receivables, net — 2,104 21 — 2,125 Prepaid expenses and other assets — 30,198 4 — 30,202 Deferred financing costs, net — 3,268 — — 3,268 Investment in subsidiaries 949,133 524,410 — (1,473,543 ) — Intercompany — 3,108 — (3,108 ) — Total assets $ 949,133 $ 1,524,003 $ 528,281 $ (1,476,651 ) $ 1,524,766 Liabilities and Equity: Senior unsecured notes payable, net $ — $ 295,721 $ — $ — $ 295,721 Senior unsecured term loan, net — 198,661 — — 198,661 Unsecured revolving credit facility — 65,000 — — 65,000 Accounts payable and accrued liabilities — 15,488 763 — 16,251 Dividends payable 21,647 — — — 21,647 Intercompany — — 3,108 (3,108 ) — Total liabilities 21,647 574,870 3,871 (3,108 ) 597,280 Equity: Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 shares issued and outstanding as of September 30, 2019 951 — — — 951 Additional paid-in capital 1,162,047 795,857 321,761 (1,117,618 ) 1,162,047 Cumulative distributions in excess of earnings (235,512 ) 153,276 202,649 (355,925 ) (235,512 ) Total equity 927,486 949,133 524,410 (1,473,543 ) 927,486 Total liabilities and equity $ 949,133 $ 1,524,003 $ 528,281 $ (1,476,651 ) $ 1,524,766 CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018 (in thousands, except share and per share amounts) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Assets: Real estate investments, net $ — $ 887,921 $ 328,316 $ — $ 1,216,237 Other real estate investments, net — 12,299 5,746 — 18,045 Cash and cash equivalents — 36,792 — — 36,792 Accounts and other receivables, net — 9,359 2,028 — 11,387 Prepaid expenses and other assets — 8,666 2 — 8,668 Deferred financing costs, net — 633 — — 633 Investment in subsidiaries 786,030 484,955 — (1,270,985 ) — Intercompany — — 151,242 (151,242 ) — Total assets $ 786,030 $ 1,440,625 $ 487,334 $ (1,422,227 ) $ 1,291,762 Liabilities and Equity: Senior unsecured notes payable, net $ — $ 295,153 $ — $ — $ 295,153 Senior unsecured term loan, net — 99,612 — — 99,612 Unsecured revolving credit facility — 95,000 — — 95,000 Accounts payable and accrued liabilities — 13,588 2,379 — 15,967 Dividends payable 17,783 — — — 17,783 Intercompany — 151,242 — (151,242 ) — Total liabilities 17,783 654,595 2,379 (151,242 ) 523,515 Equity: Common stock, $0.01 par value; 500,000,000 shares authorized, 85,867,044 shares issued and outstanding as of December 31, 2018 859 — — — 859 Additional paid-in capital 965,578 661,686 321,761 (983,447 ) 965,578 Cumulative distributions in excess of earnings (198,190 ) 124,344 163,194 (287,538 ) (198,190 ) Total equity 768,247 786,030 484,955 (1,270,985 ) 768,247 Total liabilities and equity $ 786,030 $ 1,440,625 $ 487,334 $ (1,422,227 ) $ 1,291,762 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 11,702 $ 19,875 $ — $ 31,577 Independent living facilities — — 929 — 929 Interest and other income — 808 — — 808 Total revenues — 12,510 20,804 — 33,314 Expenses: Depreciation and amortization — 7,756 5,664 — 13,420 Interest expense — 7,064 — — 7,064 Property taxes — 972 53 — 1,025 Independent living facilities — — 806 — 806 Impairment of real estate investments — 16,692 — — 16,692 Provision for loan losses — 1,076 — — 1,076 General and administrative 1,095 2,407 — — 3,502 Total expenses 1,095 35,967 6,523 — 43,585 Gain on sale of real estate — 217 — — 217 (Loss) income in Subsidiary (8,959 ) 14,281 — (5,322 ) — Net (loss) income $ (10,054 ) $ (8,959 ) $ 14,281 $ (5,322 ) $ (10,054 ) CONDENSED CONSOLIDATING INCOME STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 20,554 $ 14,778 $ — $ 35,332 Tenant reimbursements — 1,804 1,186 — 2,990 Independent living facilities — — 871 — 871 Interest and other income — 317 — — 317 Total revenues — 22,675 16,835 — 39,510 Expenses: Depreciation and amortization — 6,833 4,518 — 11,351 Interest expense — 6,805 — — 6,805 Property taxes — 1,804 1,186 — 2,990 Independent living facilities — — 766 — 766 General and administrative 987 2,101 — — 3,088 Total expenses 987 17,543 6,470 — 25,000 Income in Subsidiary 15,497 10,365 — (25,862 ) — Net income $ 14,510 $ 15,497 $ 10,365 $ (25,862 ) $ 14,510 CONDENSED CONSOLIDATING INCOME STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 59,709 $ 54,338 $ — $ 114,047 Independent living facilities — — 2,676 — 2,676 Interest and other income — 1,828 622 — 2,450 Total revenues — 61,537 57,636 — 119,173 Expenses: Depreciation and amortization — 22,989 15,770 — 38,759 Interest expense — 21,209 — — 21,209 Property taxes — 2,200 107 — 2,307 Independent living facilities — — 2,232 — 2,232 Impairment of real estate investments — 16,692 — — 16,692 Provision for loan losses — 1,076 — — 1,076 General and administrative 3,236 8,110 72 — 11,418 Total expenses 3,236 72,276 18,181 — 93,693 Gain on sale of real estate — 217 — — 217 Income in Subsidiary 28,933 39,455 — (68,388 ) — Net income $ 25,697 $ 28,933 $ 39,455 $ (68,388 ) $ 25,697 CONDENSED CONSOLIDATING INCOME STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 60,122 $ 43,734 $ — $ 103,856 Tenant reimbursements — 5,360 3,614 — 8,974 Independent living facilities — — 2,515 — 2,515 Interest and other income — 1,039 196 — 1,235 Total revenues — 66,521 50,059 — 116,580 Expenses: Depreciation and amortization — 20,488 13,739 — 34,227 Interest expense — 21,182 — — 21,182 Property taxes — 5,360 3,614 — 8,974 Independent living facilities — — 2,226 — 2,226 General and administrative 2,822 6,740 76 — 9,638 Total expenses 2,822 53,770 19,655 — 76,247 Gain on sale of real estate — 2,051 — — 2,051 Income in Subsidiary 45,206 30,404 — (75,610 ) — Net income $ 42,384 $ 45,206 $ 30,404 $ (75,610 ) $ 42,384 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (114 ) $ 39,195 $ 56,077 $ — $ 95,158 Cash flows from investing activities: Acquisitions of real estate — (86,393 ) (212,164 ) — (298,557 ) Improvements to real estate — (767 ) (463 ) — (1,230 ) Purchases of equipment, furniture and fixtures — (2,922 ) (4 ) — (2,926 ) Investment in real estate mortgage and other loans receivable — (14,699 ) — — (14,699 ) Principal payments received on real estate mortgage and other loans receivable — 11,959 — — 11,959 Repayment of other real estate investment — — 2,204 — 2,204 Escrow deposits for acquisitions of real estate — (22,920 ) — — (22,920 ) Net proceeds from sales of real estate — 218 — — 218 Distribution from subsidiary 59,155 — — (59,155 ) — Intercompany financing (193,325 ) (154,350 ) — 347,675 — Net cash used in investing activities (134,170 ) (269,874 ) (210,427 ) 288,520 (325,951 ) Cash flows from financing activities: Proceeds from the issuance of common stock, net 195,963 — — — 195,963 Proceeds from the issuance of senior unsecured term loan — 200,000 — — 200,000 Borrowings under unsecured revolving credit facility — 235,000 — — 235,000 Payments on unsecured revolving credit facility — (265,000 ) — — (265,000 ) Payments on senior unsecured term loan — (100,000 ) — — (100,000 ) Payments of deferred financing costs — (4,534 ) — — (4,534 ) Net-settle adjustment on restricted stock (2,524 ) — — — (2,524 ) Dividends paid on common stock (59,155 ) — — — (59,155 ) Distribution to Parent — (59,155 ) — 59,155 — Intercompany financing — 193,325 154,350 (347,675 ) — Net cash provided by (used in) financing activities 134,284 199,636 154,350 (288,520 ) 199,750 Net decrease in cash and cash equivalents — (31,043 ) — — (31,043 ) Cash and cash equivalents, beginning of period — 36,792 — — 36,792 Cash and cash equivalents, end of period $ — $ 5,749 $ — $ — $ 5,749 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities: $ (7 ) $ 28,087 $ 44,310 $ — $ 72,390 Cash flows from investing activities: Acquisitions of real estate — (75,621 ) — — (75,621 ) Improvements to real estate — (5,376 ) (25 ) — (5,401 ) Purchases of equipment, furniture and fixtures — (1,193 ) (69 ) — (1,262 ) Investment in real estate mortgage and other loans receivable — (2,598 ) — — (2,598 ) Principal payments received on real estate mortgage and other loans receivable — 893 — — 893 Escrow deposit for acquisition of real estate — (1,000 ) — — (1,000 ) Net proceeds from the sale of real estate — 13,004 — — 13,004 Distribution from subsidiary 45,827 — — (45,827 ) — Intercompany financing (129,251 ) 44,216 — 85,035 — Net cash used in investing activities (83,424 ) (27,675 ) (94 ) 39,208 (71,985 ) Cash flows from financing activities: Proceeds from the issuance of common stock, net 130,546 — — — 130,546 Borrowings under unsecured revolving credit facility — 60,000 — — 60,000 Payments on unsecured revolving credit facility — (135,000 ) — — (135,000 ) Net-settle adjustment on restricted stock (1,288 ) — — — (1,288 ) Dividends paid on common stock (45,827 ) — — — (45,827 ) Distribution to Parent — (45,827 ) — 45,827 — Intercompany financing — 129,251 (44,216 ) (85,035 ) — Net cash provided by (used in) financing activities 83,431 8,424 (44,216 ) (39,208 ) 8,431 Net increase in cash and cash equivalents — 8,836 — — 8,836 Cash and cash equivalents, beginning of period — 6,909 — — 6,909 Cash and cash equivalents, end of period $ — $ 15,745 $ — $ — $ 15,745 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Recent Acquisitions In October 2019, in two separate transactions, the Company acquired one skilled nursing facility and one multi-service campus with the Company’s existing tenant Kalesta Healthcare, LLC (“Kalesta”). The amended lease with Kalesta has a remaining term of approximately 14 years . The aggregate purchase price for the facilities was approximately $22.8 million , which includes estimated capitalized acquisition costs, and was funded using cash on hand and borrowings under the Company’s Revolving Facility. The contractual initial annual cash rents from the acquisitions are approximately $1.9 million subject to fixed escalators in the first twelve months. Lease Amendments Pennant Spin. On October 1, 2019, Ensign completed its previously announced separation of its home health and hospice operations and substantially all of its senior living operations into a separate independent publicly traded company through the distribution of shares of common stock of Pennant. As a result of the Pennant Spin, as of October 1, 2019, the Company amended the Ensign Master Leases to lease 84 facilities to subsidiaries of Ensign, which have a total of 8,531 operational beds, and entered into a new triple-net master lease with the subsidiaries of Pennant (the “Pennant Master Lease”) to lease 11 facilities, which have a total of 1,444 operational beds. The contractual initial annual cash rent under the Pennant Master Lease is approximately $7.8 million . The Pennant Master Lease carries an initial term of 15 years , with two five-year renewal options and CPI-based rent escalators. The contractual annual cash rent under the amended Ensign Master Leases was reduced by approximately $7.8 million . Ensign continues to guarantee each of the facilities leased to Ensign and Pennant. If Pennant achieves and maintains a specified portfolio coverage ratio, Ensign’s obligations under the guaranty with respect to the Pennant facilities would be released. As of October 1, 2019, Ensign and Pennant represented 33.2% and 4.9% , respectively, of the Company’s contractual rental income, exclusive of operating expense reimbursements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The accompanying condensed consolidated financial statements of the Company reflect, for all periods presented, the historical financial position, results of operations and cash flows of the Company and its consolidated subsidiaries consisting of (i) the net-leased skilled nursing, multi-service campuses, assisted living and independent living facilities, (ii) the operations of the three independent living facilities that the Company owns and operates; and (iii) the preferred equity investment and the mortgage loans receivable. The accompanying condensed consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all of the disclosures required by GAAP for a complete set of annual audited financial statements. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . In the opinion of management, all adjustments which are of a normal and recurring nature and considered necessary for a fair presentation of the results of the interim periods presented have been included. The results of operations for the interim periods are not necessarily indicative of results for the full year. All intercompany transactions and account balances within the Company have been eliminated. |
Recent Accounting Standards Adopted and Recent Accounting Pronouncements | Recent Accounting Standards Adopted by the Company —On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), (“ASU 2016-02”) that sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). Upon adoption of ASU 2016-02 on January 1, 2019, the Company elected the following practical expedients provided by ASU No. 2018-11, Leases - Targeted Improvements, and ASU No. 2018-20, Narrow Scope Improvements for Lessors (together with ASU 2016-02, the “new lease ASUs”): • Package of practical expedients – provides that the Company is not required to reevaluate its existing or expired leases as of January 1, 2019, under the new lease ASUs. • Optional transition method practical expedient – requires the Company to apply the new lease ASUs prospectively from the adoption date of January 1, 2019. • Single component practical expedient – requires the Company to account for lease and non-lease components associated with that lease as a single component under the new lease ASUs, if certain criteria are met. • Short-term leases practical expedient – for the Company’s operating leases with a term of less than 12 months in which it is the lessee, this expedient requires the Company not to record on its balance sheet related lease liabilities and right-of-use assets. Overview related to both lessee and lessor accounting —The new lease ASUs set new criteria for determining the classification of finance leases for lessees and sales-type leases for lessors. The criteria to determine whether a lease should be accounted for as a finance (sales-type) lease include the following: (i) ownership is transferred from lessor to lessee by the end of the lease term, (ii) an option to purchase is reasonably certain to be exercised, (iii) the lease term is for the major part of the underlying asset’s remaining economic life, (iv) the present value of lease payments equals or exceeds substantially all of the fair value of the underlying asset, and (v) the underlying asset is specialized and is expected to have no alternative use at the end of the lease term. If any of these criteria is met, a lease is classified as a finance lease by the lessee and as a sales-type lease by the lessor. If none of the criteria are met, a lease is classified as an operating lease by the lessee, but may still qualify as a direct financing lease or an operating lease for the lessor. The existence of a residual value guarantee from an unrelated third party other than the lessee may qualify the lease as a direct financing lease by the lessor. Otherwise, the lease is classified as an operating lease by the lessor. The election of the package of practical expedients discussed above and the optional transition method allowed the Company not to reassess: • Whether any expired or existing contracts as of January 1, 2019 were leases or contained leases. ◦ This practical expedient is primarily applicable to entities that have contracts containing embedded leases. As of January 1, 2019, the Company had no such contracts; therefore, this practical expedient had no effect on the Company. • The lease classification for any leases expired or existing as of January 1, 2019. ◦ The election of the package of practical expedients provides that the Company is not required to reassess the classification of its leases existing as of January 1, 2019. This means that all of the Company’s leases that were classified as operating leases in accordance with the lease accounting standards in effect prior to January 1, 2019 continue to be classified as operating leases after adoption of the new lease ASUs. The Company applied the package of practical expedients consistently to all leases (i.e., regardless of whether the Company was the lessee or a lessor) that commenced before January 1, 2019. The election of this package permits the Company to “run off” its leases that commenced before January 1, 2019, for the remainder of their lease terms and to apply the new lease ASUs to leases commencing or modified after January 1, 2019. Recent Accounting Pronouncements —In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Subtopic 326) (“ASU 2016-13”) that changes the impairment model for most financial instruments by requiring companies to recognize an allowance for expected credit losses, rather than incurred losses as required currently by the other-than-temporary impairment model. ASU 2016-13 will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans receivable, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures (e.g., loan commitments). In November 2018, the FASB released ASU No. 2018-19, Codification Improvements to Topic 326 Financial Instruments - Credit Losses (“ASU 2018-19”). ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of ASU 2016-13. Instead, impairment of receivables arising from operating leases should be accounted for under Subtopic 842-30 “Leases - Lessor.” ASU 2016-13 is effective for reporting periods beginning after December 15, 2019, with early adoption permitted, and will be applied as a cumulative adjustment to retained earnings as of the effective date. The Company plans to adopt ASU 2016-13 on January 1, 2020. The Company is currently assessing the potential effect the adoption of ASU 2016-13 will have on the Company’s condensed consolidated financial statements. |
Lessor Accounting | Lessor Accounting —Under the new lease ASUs, each lease agreement is evaluated to identify the lease and non-lease components at lease inception. The total consideration in the lease agreement is allocated to the lease and non-lease components based on their relative stand-alone selling prices. The new lease ASUs govern the recognition of revenue for lease components, and revenue related to non-lease components is subject to the new revenue recognition standard. Tenant recoveries for utilities, repairs and maintenance, and common area expenses are considered non-lease components. The Company generates revenues primarily by leasing healthcare-related properties to healthcare operators in triple-net lease arrangements, under which the tenant is solely responsible for the costs related to the property. As such, the Company has concluded its leases do not contain material non-lease components. Tenant reimbursements related to property taxes and insurance are neither lease nor non-lease components under the new lease ASUs. If a lessee makes payments for taxes and insurance directly to a third party on behalf of a lessor, lessors are required to exclude them from variable payments and from recognition in the lessors’ statements of operations. Otherwise, tenant recoveries for taxes and insurance are classified as additional rental income recognized by the lessor on a gross basis in its statements of operations. On January 1, 2019, the Company elected the single component practical expedient, which allows a lessor, by class of underlying asset, not to allocate the total consideration to the lease and non-lease components based on their relative stand-alone selling prices. This single component practical expedient requires the Company to account for the lease component and non-lease component(s) associated with that lease as a single component if (i) the timing and pattern of transfer of the lease component and the non-lease component(s) associated with it are the same and (ii) the lease component would be classified as an operating lease if it were accounted for separately. If the Company determines that the lease component is the predominant component, the Company accounts for the single component as an operating lease in accordance with the new lease ASUs. Conversely, the Company is required to account for the combined component under the new revenue recognition standard if the Company determines that the non-lease component is the predominant component. As a result of this assessment, rental revenues and tenant recoveries from the lease of real estate assets that qualify for this expedient are accounted for as a single component under the new lease ASUs, with tenant recoveries primarily as variable consideration. Tenant recoveries that do not qualify for the single component practical expedient and are considered non-lease components are accounted for under the revenue recognition standard. The components of the Company’s operating leases qualify for the single component presentation. For the three and nine months ended September 30, 2018 , the Company recognized tenant recoveries for real estate taxes of $3.0 million and $9.0 million , respectively, which were classified as tenant reimbursements on the Company’s condensed consolidated statements of operations. Prior to the adoption of Accounting Standards Codification (“ASC”) 842, the Company recognized tenant recoveries as tenant reimbursement revenues regardless of whether the third party was paid by the lessor or lessee. Effective January 1, 2019, such tenant recoveries are recognized to the extent that the Company pays the third party directly and classified as rental income on the Company’s condensed consolidated statements of operations. Due to the application of the new lease ASUs, the Company recognized, on a gross basis, real estate taxes of $0.8 million and $2.1 million , respectively, for the three and nine months ended September 30, 2019 . Under the new lease ASUs, the Company’s assessment of collectability of its tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination. Such write-offs are recorded as increases or decreases through rental income on the Company’s condensed consolidated statements of operations. For the three and nine months ended September 30, 2019 , the Company recorded $12.1 million |
Lessee Accounting | Lessee Accounting —Under the new lease ASUs, lessees are required to apply a dual approach by classifying leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, which corresponds to a similar evaluation performed by lessors. In addition to this classification, a lessee is also required to recognize a right-of-use asset and a lease liability for all leases regardless of their classification, whereas a lessor is not required to recognize a right-of-use asset and a lease liability for any operating leases. |
Estimates and Assumptions | Estimates and Assumptions —The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that the assumptions and estimates used in preparation of the underlying consolidated financial statements are reasonable. Actual results, however, could differ from those estimates and assumptions. |
Real Estate Acquisition Valuation | Real Estate Acquisition Valuation — In accordance with ASC 805, Business Combinations , the Company’s acquisitions of real estate investments generally do not meet the definition of a business, and are treated as asset acquisitions. The assets acquired and liabilities assumed are measured at their acquisition date relative fair values. Acquisition costs are capitalized as incurred. The Company allocates the acquisition costs to the tangible assets, identifiable intangible assets/liabilities and assumed liabilities on a relative fair value basis. The Company assesses fair value based on available market information, such as capitalization and discount rates, comparable sale transactions and relevant per square foot or unit cost information. A real estate asset’s fair value may be determined utilizing cash flow projections that incorporate such market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, as well as market and economic conditions. The fair value of tangible assets of an acquired property is based on the value of the property as if it is vacant. As part of the Company’s real estate acquisitions, the Company may commit to provide contingent payments to a seller or lessee (e.g., an earn-out payable upon the applicable property achieving certain financial metrics). Typically, when the contingent payments are funded, cash rent is increased by the amount funded multiplied by a rate stipulated in the agreement. Generally, if the contingent payment is an earn-out provided to the seller, the payment is capitalized to the property’s basis. If the contingent payment is an earn-out provided to the lessee, the payment is recorded as a lease incentive and is amortized as a yield adjustment over the life of the lease. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —At each reporting period, management evaluates the Company’s real estate investments for impairment indicators, including the evaluation of the useful lives of the Company’s assets. Management also assesses the carrying value of the Company’s real estate investments whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The judgment regarding the existence of impairment indicators is based on factors such as, but not limited to, market conditions, operator performance and legal structure. If indicators of impairment are present, management evaluates the carrying value of the related real estate investments in relation to the future undiscounted cash flows of the underlying facilities. Provisions for impairment losses related to long-lived assets are recognized when expected future undiscounted cash flows are determined to be less than the carrying values of the assets. An adjustment is made to the net carrying value of the real estate investments for the excess of carrying value over fair value. All impairments are taken as a period cost at that time, and depreciation is adjusted going forward to reflect the new value assigned to the asset. In the event of impairment, the fair value of the real estate investment is determined by market research, which includes valuing the property in its current use as well as other alternative uses, and involves significant judgment. Management’s estimates of cash flows and fair values of the properties are based on current market conditions and consider matters such as rental rates and occupancies for comparable properties, recent sales data for comparable properties, and, where applicable, contracts or the results of negotiations with purchasers or prospective purchasers. If the Company meets the criteria to classify the real estate properties as held for sale, which entails a formal plan to sell the properties that is expected to be complete within one year, among other criteria, the Company writes down the excess of the carrying value over the estimated fair value less costs to sell. The Company’s ability to accurately estimate future cash flows and estimate and allocate fair values impacts the timing and recognition of impairments. While the Company believes its assumptions are reasonable, changes in these assumptions may have a material impact on financial results. |
Income Taxes | Income Taxes |
Real Estate Investments, Net (T
Real Estate Investments, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Summary of Investment in Owned Properties | The following table summarizes the Company’s investment in owned properties as of September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, 2019 December 31, 2018 Land $ 198,028 $ 166,948 Buildings and improvements 1,385,223 1,201,209 Integral equipment, furniture and fixtures 92,588 87,623 Identified intangible assets 1,400 2,382 Real estate investments 1,677,239 1,458,162 Accumulated depreciation and amortization (273,215 ) (241,925 ) Real estate investments, net $ 1,404,024 $ 1,216,237 |
Schedule of Total Future Minimum Rental Revenues | As of September 30, 2019 , the Company’s total future minimum rental revenues for all of its tenants, excluding operating expense reimbursements, were (dollars in thousands): Year Amount 2019 (three months) $ 42,132 2020 169,209 2021 170,221 2022 170,587 2023 170,807 2024 170,952 Thereafter 1,111,769 $ 2,005,677 |
Schedule of Total Future Minimum Rental Revenues at Prior Year End | As of December 31, 2018 , the Company’s total future minimum rental revenues for all of its tenants, excluding operating expense reimbursements, were (dollars in thousands): Year Amount 2019 $ 146,010 2020 146,560 2021 147,132 2022 147,719 2023 148,169 Thereafter 1,055,012 $ 1,790,602 |
Schedule of Rental Income | The following table summarizes components of the Company’s rental income (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 Rental Income Contractual rent due (1) $ 43,109 $ 124,642 Straight-line rent 546 1,483 Adjustment for collectibility of rental income (2) (12,078 ) (12,078 ) Total $ 31,577 $ 114,047 (1) Initial cash rent including operating expense reimbursements adjusted for rental escalators and increases due to landlord funded capital improvements. (2) In accordance with the new lease ASUs, the Company evaluated the collectibility of lease payments through maturity and determined that it was not probable that the Company would collect substantially all of the contractual obligations from five operators through maturity. As such, the Company reversed $7.8 million of contractual rent, $3.5 million of straight-line rent and $0.8 million of property taxes during the three months ended September 30, 2019. If lease payments are subsequently deemed probable of collection, the Company increases rental income for such recoveries. |
Schedule of Real Estate Acquisitions | The following table summarizes the Company’s acquisitions for the nine months ended September 30, 2019 (dollars in thousands): Type of Property Purchase Price (1) Initial Annual Cash Rent (2) Number of Properties Number of Beds/Units (3) Skilled nursing $ 246,099 $ 22,129 16 2,029 Multi-service campuses 45,176 4,088 3 542 Assisted living 12,596 1,031 1 96 Total $ 303,871 $ 27,248 20 2,667 (1) Purchase price includes capitalized acquisition costs. (2) Initial annual cash rent excludes ground lease income. (3) The number of beds/units includes operating beds at acquisition date. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Instruments | A summary of the face values, carrying amounts and fair values of the Company’s financial instruments as of September 30, 2019 and December 31, 2018 using Level 2 inputs for the Notes (as defined in Note 6, Debt, below), and Level 3 inputs, for all other financial instruments, is as follows (dollars in thousands): September 30, 2019 December 31, 2018 Face Carrying Fair Face Carrying Fair Financial assets: Preferred equity investments $ 2,327 $ 3,079 $ 3,540 $ 4,531 $ 5,746 $ 6,246 Mortgage loans receivable 41,773 41,728 41,773 12,375 12,299 12,375 Financial liabilities: Senior unsecured notes payable $ 300,000 $ 295,721 $ 309,750 $ 300,000 $ 295,153 $ 289,500 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Indebtedness | The following table summarizes the balance of the Company’s indebtedness as of September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, 2019 December 31, 2018 Principal Amount Deferred Loan Fees (1) Carrying Value Principal Amount Deferred Loan Fees (1) Carrying Value Senior unsecured notes payable $ 300,000 $ (4,279 ) $ 295,721 $ 300,000 $ (4,847 ) $ 295,153 Senior unsecured term loan 200,000 (1,339 ) 198,661 100,000 (388 ) 99,612 Unsecured revolving credit facility 65,000 — 65,000 95,000 — 95,000 $ 565,000 $ (5,618 ) $ 559,382 $ 495,000 $ (5,235 ) $ 489,765 (1) Deferred loan fees are not shown net for the unsecured revolving credit facility and are included in deferred financing costs, net on the accompanying condensed consolidated balance sheets. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Summary of At-The-Market Offering Program | The following table summarizes the Prior ATM Program activity for 2019 (in thousands, except per share amounts): For the Three Months Ended March 31, 2019 Number of shares 2,459 Average sales price per share $ 19.48 Gross proceeds* $ 47,893 *Total gross proceeds is before $0.6 million of commissions paid to the sales agents during the three months ended March 31, 2019 under the Prior ATM Program. |
Schedule of Dividends on Common Stock | The following table summarizes the cash dividends on the Company’s common stock declared by the Company’s Board of Directors for the first nine months of 2019 (dollars in thousands, except per share amounts): For the Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 Dividends declared per share $ 0.225 $ 0.225 $ 0.225 Dividends payment date April 15, 2019 July 15, 2019 October 15, 2019 Dividends payable as of record date $ 20,011 $ 21,508 $ 21,500 Dividends record date March 29, 2019 June 28, 2019 September 30, 2019 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes the stock-based compensation expense recognized (dollars in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Stock-based compensation expense $ 981 $ 988 $ 3,122 $ 2,816 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Common Shares Outstanding Used in Calculation of Basic EPS to Diluted EPS | The following table presents the calculation of basic and diluted earnings per common share (“EPS”) for the Company’s common stock for the three and nine months ended September 30, 2019 and 2018 , and reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) income $ (10,054 ) $ 14,510 $ 25,697 $ 42,384 Less: Net income allocated to participating securities (66 ) (84 ) (231 ) (282 ) Numerator for basic and diluted earnings available to common stockholders $ (10,120 ) $ 14,426 $ 25,466 $ 42,102 Denominator: Weighted-average basic common shares outstanding 95,103 81,490 92,409 77,811 Weighted-average diluted common shares outstanding 95,103 81,490 92,409 77,811 Earnings per common share, basic $ (0.11 ) $ 0.18 $ 0.28 $ 0.54 Earnings per common share, diluted $ (0.11 ) $ 0.18 $ 0.28 $ 0.54 |
Summarized Condensed Consolid_2
Summarized Condensed Consolidating Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summarized Condensed Consolidating Information [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS SEPTEMBER 30, 2019 (in thousands, except share and per share amounts) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Assets: Real estate investments, net $ — $ 878,848 $ 525,176 $ — $ 1,404,024 Other real estate investments, net — 41,728 3,080 — 44,808 Assets held for sale, net — 34,590 — — 34,590 Cash and cash equivalents — 5,749 — — 5,749 Accounts and other receivables, net — 2,104 21 — 2,125 Prepaid expenses and other assets — 30,198 4 — 30,202 Deferred financing costs, net — 3,268 — — 3,268 Investment in subsidiaries 949,133 524,410 — (1,473,543 ) — Intercompany — 3,108 — (3,108 ) — Total assets $ 949,133 $ 1,524,003 $ 528,281 $ (1,476,651 ) $ 1,524,766 Liabilities and Equity: Senior unsecured notes payable, net $ — $ 295,721 $ — $ — $ 295,721 Senior unsecured term loan, net — 198,661 — — 198,661 Unsecured revolving credit facility — 65,000 — — 65,000 Accounts payable and accrued liabilities — 15,488 763 — 16,251 Dividends payable 21,647 — — — 21,647 Intercompany — — 3,108 (3,108 ) — Total liabilities 21,647 574,870 3,871 (3,108 ) 597,280 Equity: Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 shares issued and outstanding as of September 30, 2019 951 — — — 951 Additional paid-in capital 1,162,047 795,857 321,761 (1,117,618 ) 1,162,047 Cumulative distributions in excess of earnings (235,512 ) 153,276 202,649 (355,925 ) (235,512 ) Total equity 927,486 949,133 524,410 (1,473,543 ) 927,486 Total liabilities and equity $ 949,133 $ 1,524,003 $ 528,281 $ (1,476,651 ) $ 1,524,766 CONDENSED CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2018 (in thousands, except share and per share amounts) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Assets: Real estate investments, net $ — $ 887,921 $ 328,316 $ — $ 1,216,237 Other real estate investments, net — 12,299 5,746 — 18,045 Cash and cash equivalents — 36,792 — — 36,792 Accounts and other receivables, net — 9,359 2,028 — 11,387 Prepaid expenses and other assets — 8,666 2 — 8,668 Deferred financing costs, net — 633 — — 633 Investment in subsidiaries 786,030 484,955 — (1,270,985 ) — Intercompany — — 151,242 (151,242 ) — Total assets $ 786,030 $ 1,440,625 $ 487,334 $ (1,422,227 ) $ 1,291,762 Liabilities and Equity: Senior unsecured notes payable, net $ — $ 295,153 $ — $ — $ 295,153 Senior unsecured term loan, net — 99,612 — — 99,612 Unsecured revolving credit facility — 95,000 — — 95,000 Accounts payable and accrued liabilities — 13,588 2,379 — 15,967 Dividends payable 17,783 — — — 17,783 Intercompany — 151,242 — (151,242 ) — Total liabilities 17,783 654,595 2,379 (151,242 ) 523,515 Equity: Common stock, $0.01 par value; 500,000,000 shares authorized, 85,867,044 shares issued and outstanding as of December 31, 2018 859 — — — 859 Additional paid-in capital 965,578 661,686 321,761 (983,447 ) 965,578 Cumulative distributions in excess of earnings (198,190 ) 124,344 163,194 (287,538 ) (198,190 ) Total equity 768,247 786,030 484,955 (1,270,985 ) 768,247 Total liabilities and equity $ 786,030 $ 1,440,625 $ 487,334 $ (1,422,227 ) $ 1,291,762 |
Condensed Consolidating Income Statements | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 11,702 $ 19,875 $ — $ 31,577 Independent living facilities — — 929 — 929 Interest and other income — 808 — — 808 Total revenues — 12,510 20,804 — 33,314 Expenses: Depreciation and amortization — 7,756 5,664 — 13,420 Interest expense — 7,064 — — 7,064 Property taxes — 972 53 — 1,025 Independent living facilities — — 806 — 806 Impairment of real estate investments — 16,692 — — 16,692 Provision for loan losses — 1,076 — — 1,076 General and administrative 1,095 2,407 — — 3,502 Total expenses 1,095 35,967 6,523 — 43,585 Gain on sale of real estate — 217 — — 217 (Loss) income in Subsidiary (8,959 ) 14,281 — (5,322 ) — Net (loss) income $ (10,054 ) $ (8,959 ) $ 14,281 $ (5,322 ) $ (10,054 ) CONDENSED CONSOLIDATING INCOME STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 20,554 $ 14,778 $ — $ 35,332 Tenant reimbursements — 1,804 1,186 — 2,990 Independent living facilities — — 871 — 871 Interest and other income — 317 — — 317 Total revenues — 22,675 16,835 — 39,510 Expenses: Depreciation and amortization — 6,833 4,518 — 11,351 Interest expense — 6,805 — — 6,805 Property taxes — 1,804 1,186 — 2,990 Independent living facilities — — 766 — 766 General and administrative 987 2,101 — — 3,088 Total expenses 987 17,543 6,470 — 25,000 Income in Subsidiary 15,497 10,365 — (25,862 ) — Net income $ 14,510 $ 15,497 $ 10,365 $ (25,862 ) $ 14,510 CONDENSED CONSOLIDATING INCOME STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 59,709 $ 54,338 $ — $ 114,047 Independent living facilities — — 2,676 — 2,676 Interest and other income — 1,828 622 — 2,450 Total revenues — 61,537 57,636 — 119,173 Expenses: Depreciation and amortization — 22,989 15,770 — 38,759 Interest expense — 21,209 — — 21,209 Property taxes — 2,200 107 — 2,307 Independent living facilities — — 2,232 — 2,232 Impairment of real estate investments — 16,692 — — 16,692 Provision for loan losses — 1,076 — — 1,076 General and administrative 3,236 8,110 72 — 11,418 Total expenses 3,236 72,276 18,181 — 93,693 Gain on sale of real estate — 217 — — 217 Income in Subsidiary 28,933 39,455 — (68,388 ) — Net income $ 25,697 $ 28,933 $ 39,455 $ (68,388 ) $ 25,697 CONDENSED CONSOLIDATING INCOME STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Revenues: Rental income $ — $ 60,122 $ 43,734 $ — $ 103,856 Tenant reimbursements — 5,360 3,614 — 8,974 Independent living facilities — — 2,515 — 2,515 Interest and other income — 1,039 196 — 1,235 Total revenues — 66,521 50,059 — 116,580 Expenses: Depreciation and amortization — 20,488 13,739 — 34,227 Interest expense — 21,182 — — 21,182 Property taxes — 5,360 3,614 — 8,974 Independent living facilities — — 2,226 — 2,226 General and administrative 2,822 6,740 76 — 9,638 Total expenses 2,822 53,770 19,655 — 76,247 Gain on sale of real estate — 2,051 — — 2,051 Income in Subsidiary 45,206 30,404 — (75,610 ) — Net income $ 42,384 $ 45,206 $ 30,404 $ (75,610 ) $ 42,384 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (114 ) $ 39,195 $ 56,077 $ — $ 95,158 Cash flows from investing activities: Acquisitions of real estate — (86,393 ) (212,164 ) — (298,557 ) Improvements to real estate — (767 ) (463 ) — (1,230 ) Purchases of equipment, furniture and fixtures — (2,922 ) (4 ) — (2,926 ) Investment in real estate mortgage and other loans receivable — (14,699 ) — — (14,699 ) Principal payments received on real estate mortgage and other loans receivable — 11,959 — — 11,959 Repayment of other real estate investment — — 2,204 — 2,204 Escrow deposits for acquisitions of real estate — (22,920 ) — — (22,920 ) Net proceeds from sales of real estate — 218 — — 218 Distribution from subsidiary 59,155 — — (59,155 ) — Intercompany financing (193,325 ) (154,350 ) — 347,675 — Net cash used in investing activities (134,170 ) (269,874 ) (210,427 ) 288,520 (325,951 ) Cash flows from financing activities: Proceeds from the issuance of common stock, net 195,963 — — — 195,963 Proceeds from the issuance of senior unsecured term loan — 200,000 — — 200,000 Borrowings under unsecured revolving credit facility — 235,000 — — 235,000 Payments on unsecured revolving credit facility — (265,000 ) — — (265,000 ) Payments on senior unsecured term loan — (100,000 ) — — (100,000 ) Payments of deferred financing costs — (4,534 ) — — (4,534 ) Net-settle adjustment on restricted stock (2,524 ) — — — (2,524 ) Dividends paid on common stock (59,155 ) — — — (59,155 ) Distribution to Parent — (59,155 ) — 59,155 — Intercompany financing — 193,325 154,350 (347,675 ) — Net cash provided by (used in) financing activities 134,284 199,636 154,350 (288,520 ) 199,750 Net decrease in cash and cash equivalents — (31,043 ) — — (31,043 ) Cash and cash equivalents, beginning of period — 36,792 — — 36,792 Cash and cash equivalents, end of period $ — $ 5,749 $ — $ — $ 5,749 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (in thousands) Parent Guarantor Issuers Combined Subsidiary Guarantors Elimination Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities: $ (7 ) $ 28,087 $ 44,310 $ — $ 72,390 Cash flows from investing activities: Acquisitions of real estate — (75,621 ) — — (75,621 ) Improvements to real estate — (5,376 ) (25 ) — (5,401 ) Purchases of equipment, furniture and fixtures — (1,193 ) (69 ) — (1,262 ) Investment in real estate mortgage and other loans receivable — (2,598 ) — — (2,598 ) Principal payments received on real estate mortgage and other loans receivable — 893 — — 893 Escrow deposit for acquisition of real estate — (1,000 ) — — (1,000 ) Net proceeds from the sale of real estate — 13,004 — — 13,004 Distribution from subsidiary 45,827 — — (45,827 ) — Intercompany financing (129,251 ) 44,216 — 85,035 — Net cash used in investing activities (83,424 ) (27,675 ) (94 ) 39,208 (71,985 ) Cash flows from financing activities: Proceeds from the issuance of common stock, net 130,546 — — — 130,546 Borrowings under unsecured revolving credit facility — 60,000 — — 60,000 Payments on unsecured revolving credit facility — (135,000 ) — — (135,000 ) Net-settle adjustment on restricted stock (1,288 ) — — — (1,288 ) Dividends paid on common stock (45,827 ) — — — (45,827 ) Distribution to Parent — (45,827 ) — 45,827 — Intercompany financing — 129,251 (44,216 ) (85,035 ) — Net cash provided by (used in) financing activities 83,431 8,424 (44,216 ) (39,208 ) 8,431 Net increase in cash and cash equivalents — 8,836 — — 8,836 Cash and cash equivalents, beginning of period — 6,909 — — 6,909 Cash and cash equivalents, end of period $ — $ 15,745 $ — $ — $ 15,745 |
Organization - Narrative (Detai
Organization - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)investmentstateunitfacilityloanbed | |
Real Estate Properties [Line Items] | |
Number of living facilities | 214 |
Number of states with properties | state | 28 |
Number of preferred equity investments | investment | 1 |
Preferred equity investment | $ | $ 3.1 |
Mortgage Loan Receivable | |
Real Estate Properties [Line Items] | |
Number of mortgage loans receivable | loan | 3 |
Mortgage loan | $ | $ 41.7 |
Skilled Nursing, Assisted Living and Independent Living Facilities | Assets Leased to Ensign | |
Real Estate Properties [Line Items] | |
Number of living facilities | 211 |
Number of units available in living facilities | bed | 21,583 |
Independent Living Facilities Owned and Operated by Company | |
Real Estate Properties [Line Items] | |
Number of living facilities | 3 |
Number of units available in living facilities | unit | 264 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)facility | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)facility | Sep. 30, 2018USD ($) | |
Real Estate Properties [Line Items] | ||||
Number of living facilities | facility | 214 | 214 | ||
Tenant reimbursements | $ 2,990 | $ 8,974 | ||
Gross real estate taxes offset to rental income | $ 800 | $ 2,100 | ||
Adjustment for collectibility of rental income | 12,078 | 12,078 | ||
Lease liability related to ground lease arrangements | $ 1,000 | $ 1,000 | ||
Weighted average remaining lease term (in years) | 73 years | 73 years | ||
Provision for loan losses | $ 1,076 | $ 0 | $ 1,076 | $ 0 |
Escrow deposit for acquisition | $ 22,700 | $ 22,700 | ||
Independent Living Facilities Owned and Operated by Company | ||||
Real Estate Properties [Line Items] | ||||
Number of living facilities | facility | 3 | 3 | ||
Priority | Bridge loan | ||||
Real Estate Properties [Line Items] | ||||
Bridge loan funding in loans receivable | $ 1,400 | $ 1,400 | ||
Loan receivable interest rate (percent) | 8.00% | 8.00% |
Real Estate Investments, Net -
Real Estate Investments, Net - Narrative (Details) $ in Millions | Sep. 30, 2019USD ($)facilitylease |
Investment [Line Items] | |
Number of living facilities | 214 |
Number of facilities not leased | 3 |
Ensign Master Leases | |
Investment [Line Items] | |
Number of facilities leased | 93 |
Number of master leases | lease | 8 |
Annualized rental revenues from master leases | $ | $ 61 |
Ensign Master Leases | Minimum | |
Investment [Line Items] | |
Percentage change in the consumer price index | 0.00% |
Ensign Master Leases | Maximum | |
Investment [Line Items] | |
Percentage change in the consumer price index | 2.50% |
Various Other Operators | |
Investment [Line Items] | |
Number of facilities leased | 118 |
Real Estate Investments, Net _2
Real Estate Investments, Net - Investment in Owned Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||
Land | $ 198,028 | $ 166,948 |
Buildings and improvements | 1,385,223 | 1,201,209 |
Integral equipment, furniture and fixtures | 92,588 | 87,623 |
Identified intangible assets | 1,400 | 2,382 |
Real estate investments | 1,677,239 | 1,458,162 |
Accumulated depreciation and amortization | (273,215) | (241,925) |
Real estate investments, net | $ 1,404,024 | $ 1,216,237 |
Real Estate Investments, Net _3
Real Estate Investments, Net - Future Minimum Rental Revenues (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Future Minimum Rental Revenues | ||
2019 (three months) | $ 42,132 | |
2020 | 169,209 | |
2021 | 170,221 | |
2022 | 170,587 | |
2023 | 170,807 | |
2024 | 170,952 | |
Thereafter | 1,111,769 | |
Total | $ 2,005,677 | |
Future Minimum Rental Revenues at Prior Year End | ||
2019 | $ 146,010 | |
2020 | 146,560 | |
2021 | 147,132 | |
2022 | 147,719 | |
2023 | 148,169 | |
Thereafter | 1,055,012 | |
Total | $ 1,790,602 |
Real Estate Investments, Net _4
Real Estate Investments, Net - Recent Real Estate Acquisitions (Details) $ in Thousands | 1 Months Ended | 9 Months Ended |
Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($)propertyunit | |
Business Acquisition [Line Items] | ||
Purchase Price | $ 303,871 | |
Initial Annual Cash Rent | $ 27,248 | |
Number of Properties | property | 20 | |
Number of Beds/Units | unit | 2,667 | |
Skilled nursing | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 16,200 | $ 246,099 |
Initial Annual Cash Rent | $ 22,129 | |
Number of Properties | property | 16 | |
Number of Beds/Units | unit | 2,029 | |
Multi-service campuses | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 45,176 | |
Initial Annual Cash Rent | $ 4,088 | |
Number of Properties | property | 3 | |
Number of Beds/Units | unit | 542 | |
Assisted living | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 12,596 | |
Initial Annual Cash Rent | $ 1,031 | |
Number of Properties | property | 1 | |
Number of Beds/Units | unit | 96 |
Real Estate Investments, Net _5
Real Estate Investments, Net - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Rental Income | |||
Contractual rent due | $ 43,109 | $ 124,642 | |
Straight-line rent | 546 | 1,483 | $ 1,631 |
Adjustment for collectibility of rental income | (12,078) | (12,078) | |
Total rental income | 31,577 | $ 114,047 | |
Contractual rent | |||
Rental Income | |||
Adjustment for collectibility of rental income | (7,800) | ||
Straight-line rent | |||
Rental Income | |||
Adjustment for collectibility of rental income | (3,500) | ||
Property taxes | |||
Rental Income | |||
Adjustment for collectibility of rental income | $ (800) |
Real Estate Investments, Net _6
Real Estate Investments, Net - Lease Amendments and Impairment of Real Estate Investments and Assets Held for Sale (Details) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2019USD ($)facility | Sep. 01, 2019USD ($)propertyrenewal_optionfacility | Aug. 16, 2019property | Jul. 15, 2019property | Dec. 31, 2018USD ($) | Oct. 31, 2017USD ($) | |
Real Estate [Line Items] | ||||||
Assets held for sale, net | $ 34,590 | $ 0 | ||||
Trillium | Iowa | ||||||
Real Estate [Line Items] | ||||||
Properties in terminated master lease | property | 10 | |||||
Properties covered in new master lease | property | 10 | |||||
Trillium | Ohio | ||||||
Real Estate [Line Items] | ||||||
Properties in terminated master lease | property | 7 | |||||
Trillium | Georgia | ||||||
Real Estate [Line Items] | ||||||
Properties in terminated master lease | property | 1 | |||||
Properties covered in new master lease | property | 1 | |||||
Accounts and Other Receivables | ||||||
Real Estate [Line Items] | ||||||
Write-off of accounts and straight-line rent receivable | 3,800 | |||||
Mortgage Loan Receivable | ||||||
Real Estate [Line Items] | ||||||
Mortgage loan | $ 41,700 | |||||
Mortgage Loan Receivable | Providence | ||||||
Real Estate [Line Items] | ||||||
Mortgage loan | $ 12,500 | |||||
Mortgage Loan Receivable | CommuniCare | ||||||
Real Estate [Line Items] | ||||||
Facilities utilized to secure mortgage loan | facility | 3 | 3 | ||||
Mortgage loan | $ 26,500 | $ 26,500 | ||||
Skilled nursing | ||||||
Real Estate [Line Items] | ||||||
Purchase price on sale of real estate | $ 28,000 | |||||
Skilled nursing | Ohio | ||||||
Real Estate [Line Items] | ||||||
Number of properties sold | property | 3 | |||||
Skilled nursing | Trillium | Ohio | ||||||
Real Estate [Line Items] | ||||||
Properties in terminated master lease | property | 7 | |||||
Skilled nursing | Providence | Ohio | ||||||
Real Estate [Line Items] | ||||||
Number of properties transferred | property | 4 | |||||
Triple-net master lease | Providence | ||||||
Real Estate [Line Items] | ||||||
Lease term (in years) | 13 years | |||||
Number of renewal options | renewal_option | 2 | |||||
Lease renewal term (in years) | 5 years | |||||
Annual cash rent increase under amended lease | $ 2,100 | |||||
Disposed of by sale | Trillium Skilled Nursing Facilities | ||||||
Real Estate [Line Items] | ||||||
Impairment expense to reduce carrying amount to fair value less cost to sell property | 7,800 | |||||
Held for sale | Metron Skilled Nursing Facilities | ||||||
Real Estate [Line Items] | ||||||
Impairment expense to reduce carrying amount to fair value less cost to sell property | $ 8,800 | |||||
Number of properties held for sale | facility | 6 | |||||
Assets held for sale, net | $ 34,600 |
Other Real Estate Investments -
Other Real Estate Investments - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jul. 31, 2019USD ($)bed | Jun. 30, 2019USD ($) | Feb. 28, 2019USD ($)extension_optionfacility | Sep. 30, 2016USD ($)bed | Jul. 31, 2016USD ($)bed | Sep. 30, 2019USD ($)facility | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)facility | Sep. 30, 2018USD ($) | Sep. 01, 2019USD ($)facility | Oct. 31, 2017USD ($) | |
Real Estate Properties [Line Items] | |||||||||||
Preferred equity investment | $ 3,100,000 | $ 3,100,000 | |||||||||
Aggregate purchase price | 303,871,000 | ||||||||||
Payment to acquire facility | 298,557,000 | $ 75,621,000 | |||||||||
Return of initial investment | 2,204,000 | 0 | |||||||||
Cumulative contractual preferred return through acquisition date | 1,100,000 | ||||||||||
Mortgage Loan Receivable | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Mortgage loan | 41,700,000 | 41,700,000 | |||||||||
Providence | Mortgage Loan Receivable | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Interest income recognized | 800,000 | $ 300,000 | 1,800,000 | 900,000 | |||||||
Mortgage loan | $ 12,500,000 | ||||||||||
Mortgage loan receivable interest rate (percent) | 9.00% | ||||||||||
Covenant Care | Mortgage Loan Receivable | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Mortgage loan | $ 11,400,000 | ||||||||||
Mortgage loan receivable interest rate (percent) | 9.00% | ||||||||||
Facilities utilized to secure mortgage loan | facility | 5 | ||||||||||
Number of extension options | extension_option | 2 | ||||||||||
Extension option term (in months) | 6 months | ||||||||||
Manteca | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Purchase and sale agreement amount | $ 16,400,000 | ||||||||||
Manteca | Mortgage Loan Receivable | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Number of beds in facility used to secure loan | bed | 176 | ||||||||||
Mortgage loan | $ 3,000,000 | ||||||||||
Mortgage loan receivable interest rate (percent) | 8.00% | ||||||||||
CommuniCare | Mortgage Loan Receivable | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Mortgage loan | $ 26,500,000 | $ 26,500,000 | $ 26,500,000 | ||||||||
Mortgage loan receivable interest rate (percent) | 10.00% | 10.00% | |||||||||
Facilities utilized to secure mortgage loan | facility | 3 | 3 | 3 | ||||||||
Cascadia Development, LLC | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Preferred equity investment | $ 2,300,000 | $ 2,200,000 | |||||||||
Preferred equity investment minimum yield | 12.00% | 12.00% | |||||||||
Number of beds planned for construction | bed | 99 | 99 | |||||||||
Initial lease yield (percent) | 9.00% | 9.00% | |||||||||
Return of initial investment | $ 2,200,000 | ||||||||||
Cascadia Development, LLC | Prime Rate | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Basis spread of preferred equity investment yield | 9.50% | 9.50% | |||||||||
Preferred Equity Investment | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Interest income recognized | $ 0 | $ 0 | $ 600,000 | $ 200,000 | |||||||
Recognition of unrecognized preferred return from prior periods | 400,000 | ||||||||||
Skilled nursing | |||||||||||
Real Estate Properties [Line Items] | |||||||||||
Aggregate purchase price | 16,200,000 | $ 246,099,000 | |||||||||
Payment to acquire facility | $ 12,900,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Preferred equity investment - face value | $ 2,327 | $ 4,531 |
Mortgage loans receivable | ||
Financial assets: | ||
Mortgage loans receivable - face value | 41,773 | 12,375 |
Senior unsecured notes payable | ||
Financial liabilities: | ||
Senior unsecured notes payable - face value | 300,000 | 300,000 |
Carrying Amount | Level 2 | Senior unsecured notes payable | ||
Financial liabilities: | ||
Senior unsecured notes payable | 295,721 | 295,153 |
Carrying Amount | Level 3 | ||
Financial assets: | ||
Preferred equity investments | 3,079 | 5,746 |
Carrying Amount | Level 3 | Mortgage loans receivable | ||
Financial assets: | ||
Mortgage loans receivable | 41,728 | 12,299 |
Fair Value | Level 2 | Senior unsecured notes payable | ||
Financial liabilities: | ||
Senior unsecured notes payable | 309,750 | 289,500 |
Fair Value | Level 3 | ||
Financial assets: | ||
Preferred equity investments | 3,540 | 6,246 |
Fair Value | Level 3 | Mortgage loans receivable | ||
Financial assets: | ||
Mortgage loans receivable | $ 41,773 | $ 12,375 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 565,000 | $ 495,000 |
Deferred Loan Fees(1) | (5,618) | (5,235) |
Carrying Value | 559,382 | 489,765 |
Senior unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Principal Amount | 300,000 | 300,000 |
Deferred Loan Fees(1) | (4,279) | (4,847) |
Carrying Value | 295,721 | 295,153 |
Senior unsecured term loan | ||
Debt Instrument [Line Items] | ||
Principal Amount | 200,000 | 100,000 |
Deferred Loan Fees(1) | (1,339) | (388) |
Carrying Value | 198,661 | 99,612 |
Unsecured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Principal Amount | 65,000 | 95,000 |
Deferred Loan Fees(1) | 0 | 0 |
Carrying Value | $ 65,000 | $ 95,000 |
Debt - Senior Unsecured Notes P
Debt - Senior Unsecured Notes Payable (Details) - USD ($) $ in Thousands | May 10, 2017 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||
Gross proceeds from issuance of senior notes | $ 200,000 | $ 0 | |
Senior Unsecured Notes | 5.25% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300,000 | ||
Interest rate, stated percentage | 5.25% | ||
Gross proceeds from issuance of senior notes | $ 300,000 | ||
Net proceeds from issuance of senior notes | $ 294,000 | ||
Debt instrument, redemption price, percentage | 100.00% | ||
Debt instrument, redemption price, percentage upon change of control | 101.00% | ||
Senior Unsecured Notes | 5.25% Senior Notes due 2025 | Debt Instrument, Redemption, Period One | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 105.25% | ||
Senior Unsecured Notes | 5.25% Senior Notes due 2025 | Debt Instrument, Redemption, Period One | Minimum | |||
Debt Instrument [Line Items] | |||
Percentage of aggregate principal amount of notes outstanding | 60.00% | ||
Senior Unsecured Notes | 5.25% Senior Notes due 2025 | Debt Instrument, Redemption, Period One | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage of principal amount | 40.00% |
Debt - Unsecured Revolving Cred
Debt - Unsecured Revolving Credit Facility and Term Loan and Interst Expense (Details) $ in Thousands | Feb. 08, 2019USD ($)extension_option | Feb. 01, 2016USD ($)extension_option | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||
Outstanding amounts | $ 565,000 | $ 495,000 | ||
Outstanding borrowings | 559,382 | 489,765 | ||
Revolving Credit Facility | New Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 600,000 | |||
Number of extension options | extension_option | 2 | |||
Line of credit facility, extension period | 6 months | |||
Revolving Credit Facility | New Revolving Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Facility fee on revolving commitment fees (percent) | 0.15% | |||
Facility fee on revolving commitment fee based on investment grade ratings (percent) | 0.125% | |||
Revolving Credit Facility | New Revolving Facility | Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.10% | |||
Revolving Credit Facility | New Revolving Facility | Minimum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.10% | |||
Revolving Credit Facility | New Revolving Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Facility fee on revolving commitment fees (percent) | 0.35% | |||
Facility fee on revolving commitment fee based on investment grade ratings (percent) | 0.30% | |||
Revolving Credit Facility | New Revolving Facility | Maximum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.55% | |||
Revolving Credit Facility | New Revolving Facility | Maximum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.55% | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Subfacility capacity as percentage of available revolving commitments (percent) | 10.00% | |||
Swingline Loan | ||||
Line of Credit Facility [Line Items] | ||||
Subfacility capacity as percentage of available revolving commitments (percent) | 10.00% | |||
Prior Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amounts | 65,000 | 95,000 | ||
Outstanding borrowings | 65,000 | 95,000 | ||
Prior Credit Facility | Prior Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 400,000 | |||
Line of credit facility, uncommitted incremental facility limit | $ 250,000 | |||
Number of extension options | extension_option | 2 | |||
Line of credit facility, extension period | 6 months | |||
Prior Credit Facility | Prior Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 100,000 | |||
Line of credit facility, prepayment premium in first year | 2.00% | |||
Line of credit facility, prepayment premium in second year | 1.00% | |||
Unsecured Debt | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | 300,000 | 300,000 | ||
Unsecured Debt | New Term Loan Feb 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 200,000 | |||
Unsecured Debt | New Term Loan Feb 2019 | Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 0.50% | |||
Unsecured Debt | New Term Loan Feb 2019 | Minimum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.50% | |||
Unsecured Debt | New Term Loan Feb 2019 | Maximum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 1.20% | |||
Unsecured Debt | New Term Loan Feb 2019 | Maximum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate (percent) | 2.20% | |||
Prior Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding amounts | 200,000 | 100,000 | ||
Outstanding borrowings | $ 198,661 | $ 99,612 |
Equity - Public Offering of Com
Equity - Public Offering of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 15, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Subsidiary, Sale of Stock [Line Items] | ||||
Issuance of common stock, net, (in shares) | 6,641,250 | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Shares price to the public (in usd per share) | $ 23.35 | |||
Proceeds from the issuance of common stock, net | $ 149,000 | $ 195,963 | $ 130,546 | |
Over-Allotment Option | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Issuance of common stock, net, (in shares) | 866,250 |
Equity - At-The-Market Offering
Equity - At-The-Market Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 15, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 04, 2019 |
ATM Program activity | |||||
Number of shares (in shares) | 6,641,250 | ||||
Gross proceeds | $ 149,000 | $ 195,963 | $ 130,546 | ||
New ATM Program | |||||
Class of Stock [Line Items] | |||||
Remaining offering amount available | $ 300,000 | ||||
New ATM Program | Maximum | |||||
Class of Stock [Line Items] | |||||
Authorized aggregate offering price of common stock | $ 300,000 | ||||
Prior ATM Program | |||||
ATM Program activity | |||||
Number of shares (in shares) | 2,459,000 | ||||
Average sales price per share (in usd per share) | $ 19.48 | ||||
Gross proceeds | $ 47,893 | ||||
Commissions paid on stock issuance | $ 600 |
Equity - Dividends on Common St
Equity - Dividends on Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Dividends per share of common stock | ||||||
Dividends declared per share | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.205 | $ 0.205 | $ 0.205 |
Dividends payment date | Oct. 15, 2019 | Jul. 15, 2019 | Apr. 15, 2019 | |||
Dividends payable as of record date | $ 21,500 | $ 21,508 | $ 20,011 | |||
Dividends record date | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | Jun. 01, 2014companyshares | May 31, 2019$ / sharesshares | Feb. 28, 2019installment$ / sharesshares | Sep. 30, 2019USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of separate and independent companies after spin-off | company | 2 | |||
Unamortized stock-based compensation expense related to unvested awards | $ | $ 5.2 | |||
Weighted average remaining vesting period related to expense recognition | 2 years 3 months 18 days | |||
Ensign Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock award conversion ratio related to the spin-off | 1 | |||
Restricted Stock Award | Ensign Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards unvested during spin-off (in shares) | 207,580 | |||
Unvested stock awards outstanding (in shares) | 1,760 | |||
Restricted Stock Award | Officers and Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards granted (in shares) | 91,440 | |||
Award grant date fair value (in usd per share) | $ / shares | $ 22 | |||
Number of equal annual vesting installments | installment | 4 | |||
Restricted Stock Award | Board of Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards granted (in shares) | 17,749 | |||
Award grant date fair value (in usd per share) | $ / shares | $ 24.23 | |||
Performance Stock Award | Officers and Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards granted (in shares) | 71,440 | |||
Award grant date fair value (in usd per share) | $ / shares | $ 22 | |||
Vesting metric, Normalized Funds from Operations, minimum | 5.00% | |||
Minimum | Performance Stock Award | Officers and Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period range (in years) | 1 year | |||
Maximum | Performance Stock Award | Officers and Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period range (in years) | 4 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 981 | $ 988 | $ 3,122 | $ 2,816 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of Weighted-Average Common Shares Outstanding Used in Calculation of Basic EPS to Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||||||
Net (loss) income | $ (10,054) | $ 19,698 | $ 16,053 | $ 14,510 | $ 13,267 | $ 14,607 | $ 25,697 | $ 42,384 |
Less: Net income allocated to participating securities | (66) | (84) | (231) | (282) | ||||
Numerator for basic and diluted earnings available to common stockholders | $ (10,120) | $ 14,426 | $ 25,466 | $ 42,102 | ||||
Denominator: | ||||||||
Weighted-average basic common shares outstanding (in shares) | 95,103 | 81,490 | 92,409 | 77,811 | ||||
Weighted-average diluted common shares outstanding (in shares) | 95,103 | 81,490 | 92,409 | 77,811 | ||||
Earnings per common share, basic (in usd per share) | $ (0.11) | $ 0.18 | $ 0.28 | $ 0.54 | ||||
Earnings per common share, diluted (in usd per share) | $ (0.11) | $ 0.18 | $ 0.28 | $ 0.54 |
Concentration of Risk - Narrati
Concentration of Risk - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019facility | Sep. 30, 2018 | Sep. 30, 2019statefacilitybed | Sep. 30, 2018 | |
Concentration Risk [Line Items] | ||||
Number of living facilities | 214 | 214 | ||
Description of highest concentration of properties | The four states in which Ensign leases the highest concentration of properties are California, Texas, Utah and Arizona as of September 30, 2019. | |||
Skilled Nursing, Assisted Living and Independent Living Facilities | Assets Leased to Ensign | ||||
Concentration Risk [Line Items] | ||||
Number of living facilities | 211 | 211 | ||
Number of units available in living facilities | bed | 21,583 | |||
Ensign | ||||
Concentration Risk [Line Items] | ||||
Number of states where Ensign leases the highest concentration of properties | state | 4 | |||
Ensign | Skilled Nursing, Assisted Living and Independent Living Facilities | Assets Leased to Ensign | ||||
Concentration Risk [Line Items] | ||||
Number of living facilities | 93 | 93 | ||
Number of units available in living facilities | bed | 9,975 | |||
Ensign | Customer Concentration Risk | Rental Income | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 50.00% | 42.00% | 40.00% | 42.00% |
Summarized Condensed Consolid_3
Summarized Condensed Consolidating Information - Narrative (Details) | Jun. 01, 2014company |
Summarized Condensed Consolidating Information [Abstract] | |
Number of separate and independent companies after spin-off | 2 |
Summarized Condensed Consolid_4
Summarized Condensed Consolidating Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||||||
Real estate investments, net | $ 1,404,024 | $ 1,216,237 | ||||||
Other real estate investments, net | 44,808 | 18,045 | ||||||
Assets held for sale, net | 34,590 | 0 | ||||||
Cash and cash equivalents | 5,749 | 36,792 | ||||||
Accounts and other receivables, net | 2,125 | 11,387 | ||||||
Prepaid expenses and other assets | 30,202 | 8,668 | ||||||
Deferred financing costs, net | 3,268 | 633 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Intercompany | 0 | 0 | ||||||
Total assets | 1,524,766 | 1,291,762 | ||||||
Liabilities and Equity: | ||||||||
Senior unsecured notes payable, net | 295,721 | 295,153 | ||||||
Senior unsecured term loan, net | 198,661 | 99,612 | ||||||
Unsecured revolving credit facility | 65,000 | 95,000 | ||||||
Accounts payable and accrued liabilities | 16,251 | 15,967 | ||||||
Dividends payable | 21,647 | 17,783 | ||||||
Intercompany | 0 | 0 | ||||||
Total liabilities | 597,280 | 523,515 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 and 85,867,044 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 951 | 859 | ||||||
Additional paid-in capital | 1,162,047 | 965,578 | ||||||
Cumulative distributions in excess of earnings | (235,512) | (198,190) | ||||||
Total equity | 927,486 | $ 958,137 | $ 811,031 | 768,247 | $ 720,050 | $ 638,738 | $ 593,888 | $ 594,617 |
Total liabilities and equity | 1,524,766 | 1,291,762 | ||||||
Reportable Legal Entities | Parent Guarantor | ||||||||
Assets: | ||||||||
Real estate investments, net | 0 | 0 | ||||||
Other real estate investments, net | 0 | 0 | ||||||
Assets held for sale, net | 0 | |||||||
Cash and cash equivalents | 0 | 0 | ||||||
Accounts and other receivables, net | 0 | 0 | ||||||
Prepaid expenses and other assets | 0 | 0 | ||||||
Deferred financing costs, net | 0 | 0 | ||||||
Investment in subsidiaries | 949,133 | 786,030 | ||||||
Intercompany | 0 | 0 | ||||||
Total assets | 949,133 | 786,030 | ||||||
Liabilities and Equity: | ||||||||
Senior unsecured notes payable, net | 0 | 0 | ||||||
Senior unsecured term loan, net | 0 | 0 | ||||||
Unsecured revolving credit facility | 0 | 0 | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||||
Dividends payable | 21,647 | 17,783 | ||||||
Intercompany | 0 | 0 | ||||||
Total liabilities | 21,647 | 17,783 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 and 85,867,044 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 951 | 859 | ||||||
Additional paid-in capital | 1,162,047 | 965,578 | ||||||
Cumulative distributions in excess of earnings | (235,512) | (198,190) | ||||||
Total equity | 927,486 | 768,247 | ||||||
Total liabilities and equity | 949,133 | 786,030 | ||||||
Reportable Legal Entities | Issuers | ||||||||
Assets: | ||||||||
Real estate investments, net | 878,848 | 887,921 | ||||||
Other real estate investments, net | 41,728 | 12,299 | ||||||
Assets held for sale, net | 34,590 | |||||||
Cash and cash equivalents | 5,749 | 36,792 | ||||||
Accounts and other receivables, net | 2,104 | 9,359 | ||||||
Prepaid expenses and other assets | 30,198 | 8,666 | ||||||
Deferred financing costs, net | 3,268 | 633 | ||||||
Investment in subsidiaries | 524,410 | 484,955 | ||||||
Intercompany | 3,108 | 0 | ||||||
Total assets | 1,524,003 | 1,440,625 | ||||||
Liabilities and Equity: | ||||||||
Senior unsecured notes payable, net | 295,721 | 295,153 | ||||||
Senior unsecured term loan, net | 198,661 | 99,612 | ||||||
Unsecured revolving credit facility | 65,000 | 95,000 | ||||||
Accounts payable and accrued liabilities | 15,488 | 13,588 | ||||||
Dividends payable | 0 | 0 | ||||||
Intercompany | 0 | 151,242 | ||||||
Total liabilities | 574,870 | 654,595 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 and 85,867,044 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 0 | 0 | ||||||
Additional paid-in capital | 795,857 | 661,686 | ||||||
Cumulative distributions in excess of earnings | 153,276 | 124,344 | ||||||
Total equity | 949,133 | 786,030 | ||||||
Total liabilities and equity | 1,524,003 | 1,440,625 | ||||||
Reportable Legal Entities | Combined Subsidiary Guarantors | ||||||||
Assets: | ||||||||
Real estate investments, net | 525,176 | 328,316 | ||||||
Other real estate investments, net | 3,080 | 5,746 | ||||||
Assets held for sale, net | 0 | |||||||
Cash and cash equivalents | 0 | 0 | ||||||
Accounts and other receivables, net | 21 | 2,028 | ||||||
Prepaid expenses and other assets | 4 | 2 | ||||||
Deferred financing costs, net | 0 | 0 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Intercompany | 0 | 151,242 | ||||||
Total assets | 528,281 | 487,334 | ||||||
Liabilities and Equity: | ||||||||
Senior unsecured notes payable, net | 0 | 0 | ||||||
Senior unsecured term loan, net | 0 | 0 | ||||||
Unsecured revolving credit facility | 0 | 0 | ||||||
Accounts payable and accrued liabilities | 763 | 2,379 | ||||||
Dividends payable | 0 | 0 | ||||||
Intercompany | 3,108 | 0 | ||||||
Total liabilities | 3,871 | 2,379 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 and 85,867,044 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 0 | 0 | ||||||
Additional paid-in capital | 321,761 | 321,761 | ||||||
Cumulative distributions in excess of earnings | 202,649 | 163,194 | ||||||
Total equity | 524,410 | 484,955 | ||||||
Total liabilities and equity | 528,281 | 487,334 | ||||||
Elimination | ||||||||
Assets: | ||||||||
Real estate investments, net | 0 | 0 | ||||||
Other real estate investments, net | 0 | 0 | ||||||
Assets held for sale, net | 0 | |||||||
Cash and cash equivalents | 0 | 0 | ||||||
Accounts and other receivables, net | 0 | 0 | ||||||
Prepaid expenses and other assets | 0 | 0 | ||||||
Deferred financing costs, net | 0 | 0 | ||||||
Investment in subsidiaries | (1,473,543) | (1,270,985) | ||||||
Intercompany | (3,108) | (151,242) | ||||||
Total assets | (1,476,651) | (1,422,227) | ||||||
Liabilities and Equity: | ||||||||
Senior unsecured notes payable, net | 0 | 0 | ||||||
Senior unsecured term loan, net | 0 | 0 | ||||||
Unsecured revolving credit facility | 0 | 0 | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||||
Dividends payable | 0 | 0 | ||||||
Intercompany | (3,108) | (151,242) | ||||||
Total liabilities | (3,108) | (151,242) | ||||||
Equity: | ||||||||
Common stock, $0.01 par value; 500,000,000 shares authorized, 95,103,270 and 85,867,044 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 0 | 0 | ||||||
Additional paid-in capital | (1,117,618) | (983,447) | ||||||
Cumulative distributions in excess of earnings | (355,925) | (287,538) | ||||||
Total equity | (1,473,543) | (1,270,985) | ||||||
Total liabilities and equity | $ (1,476,651) | $ (1,422,227) |
Summarized Condensed Consolid_5
Summarized Condensed Consolidating Information - Condensed Consolidating Balance Sheets Share Data (Details) - $ / shares | Sep. 30, 2019 | Apr. 15, 2019 | Dec. 31, 2018 |
Summarized Condensed Consolidating Information [Abstract] | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 500,000,000 | 500,000,000 | |
Common stock, issued (shares) | 95,103,270 | 85,867,044 | |
Common stock, outstanding (shares) | 95,103,270 | 85,867,044 |
Summarized Condensed Consolid_6
Summarized Condensed Consolidating Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||||||
Rental income | $ 31,577 | $ 114,047 | ||||||
Rental income | $ 35,332 | $ 103,856 | ||||||
Tenant reimbursements | 2,990 | 8,974 | ||||||
Independent living facilities | 929 | 871 | 2,676 | 2,515 | ||||
Interest and other income | 808 | 317 | 2,450 | 1,235 | ||||
Total revenues | 33,314 | 39,510 | 119,173 | 116,580 | ||||
Expenses: | ||||||||
Depreciation and amortization | 13,420 | 11,351 | 38,759 | 34,227 | ||||
Interest expense | 7,064 | 6,805 | 21,209 | 21,182 | ||||
Property taxes | 1,025 | 2,990 | 2,307 | 8,974 | ||||
Independent living facilities | 806 | 766 | 2,232 | 2,226 | ||||
Impairment of real estate investments | 16,692 | 0 | 16,692 | 0 | ||||
Provision for loan losses | 1,076 | 0 | 1,076 | 0 | ||||
General and administrative | 3,502 | 3,088 | 11,418 | 9,638 | ||||
Total expenses | 43,585 | 25,000 | 93,693 | 76,247 | ||||
Gain on sale of real estate | 217 | 0 | 217 | 2,051 | ||||
(Loss) income in Subsidiary | 0 | 0 | 0 | 0 | ||||
Net (loss) income | (10,054) | $ 19,698 | $ 16,053 | 14,510 | $ 13,267 | $ 14,607 | 25,697 | 42,384 |
Reportable Legal Entities | Parent Guarantor | ||||||||
Revenues: | ||||||||
Rental income | 0 | 0 | ||||||
Rental income | 0 | 0 | ||||||
Tenant reimbursements | 0 | 0 | ||||||
Independent living facilities | 0 | 0 | 0 | 0 | ||||
Interest and other income | 0 | 0 | 0 | 0 | ||||
Total revenues | 0 | 0 | 0 | 0 | ||||
Expenses: | ||||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Property taxes | 0 | 0 | 0 | 0 | ||||
Independent living facilities | 0 | 0 | 0 | 0 | ||||
Impairment of real estate investments | 0 | 0 | ||||||
Provision for loan losses | 0 | 0 | ||||||
General and administrative | 1,095 | 987 | 3,236 | 2,822 | ||||
Total expenses | 1,095 | 987 | 3,236 | 2,822 | ||||
Gain on sale of real estate | 0 | 0 | 0 | |||||
(Loss) income in Subsidiary | (8,959) | 15,497 | 28,933 | 45,206 | ||||
Net (loss) income | (10,054) | 14,510 | 25,697 | 42,384 | ||||
Reportable Legal Entities | Issuers | ||||||||
Revenues: | ||||||||
Rental income | 11,702 | 59,709 | ||||||
Rental income | 20,554 | 60,122 | ||||||
Tenant reimbursements | 1,804 | 5,360 | ||||||
Independent living facilities | 0 | 0 | 0 | 0 | ||||
Interest and other income | 808 | 317 | 1,828 | 1,039 | ||||
Total revenues | 12,510 | 22,675 | 61,537 | 66,521 | ||||
Expenses: | ||||||||
Depreciation and amortization | 7,756 | 6,833 | 22,989 | 20,488 | ||||
Interest expense | 7,064 | 6,805 | 21,209 | 21,182 | ||||
Property taxes | 972 | 1,804 | 2,200 | 5,360 | ||||
Independent living facilities | 0 | 0 | 0 | 0 | ||||
Impairment of real estate investments | 16,692 | 16,692 | ||||||
Provision for loan losses | 1,076 | 1,076 | ||||||
General and administrative | 2,407 | 2,101 | 8,110 | 6,740 | ||||
Total expenses | 35,967 | 17,543 | 72,276 | 53,770 | ||||
Gain on sale of real estate | 217 | 217 | 2,051 | |||||
(Loss) income in Subsidiary | 14,281 | 10,365 | 39,455 | 30,404 | ||||
Net (loss) income | (8,959) | 15,497 | 28,933 | 45,206 | ||||
Reportable Legal Entities | Combined Subsidiary Guarantors | ||||||||
Revenues: | ||||||||
Rental income | 19,875 | 54,338 | ||||||
Rental income | 14,778 | 43,734 | ||||||
Tenant reimbursements | 1,186 | 3,614 | ||||||
Independent living facilities | 929 | 871 | 2,676 | 2,515 | ||||
Interest and other income | 0 | 0 | 622 | 196 | ||||
Total revenues | 20,804 | 16,835 | 57,636 | 50,059 | ||||
Expenses: | ||||||||
Depreciation and amortization | 5,664 | 4,518 | 15,770 | 13,739 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Property taxes | 53 | 1,186 | 107 | 3,614 | ||||
Independent living facilities | 806 | 766 | 2,232 | 2,226 | ||||
Impairment of real estate investments | 0 | 0 | ||||||
Provision for loan losses | 0 | 0 | ||||||
General and administrative | 0 | 0 | 72 | 76 | ||||
Total expenses | 6,523 | 6,470 | 18,181 | 19,655 | ||||
Gain on sale of real estate | 0 | 0 | 0 | |||||
(Loss) income in Subsidiary | 0 | 0 | 0 | 0 | ||||
Net (loss) income | 14,281 | 10,365 | 39,455 | 30,404 | ||||
Elimination | ||||||||
Revenues: | ||||||||
Rental income | 0 | 0 | ||||||
Rental income | 0 | 0 | ||||||
Tenant reimbursements | 0 | 0 | ||||||
Independent living facilities | 0 | 0 | 0 | 0 | ||||
Interest and other income | 0 | 0 | 0 | 0 | ||||
Total revenues | 0 | 0 | 0 | 0 | ||||
Expenses: | ||||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Property taxes | 0 | 0 | 0 | 0 | ||||
Independent living facilities | 0 | 0 | 0 | 0 | ||||
Impairment of real estate investments | 0 | 0 | ||||||
Provision for loan losses | 0 | 0 | ||||||
General and administrative | 0 | 0 | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 0 | ||||
Gain on sale of real estate | 0 | 0 | 0 | |||||
(Loss) income in Subsidiary | (5,322) | (25,862) | (68,388) | (75,610) | ||||
Net (loss) income | $ (5,322) | $ (25,862) | $ (68,388) | $ (75,610) |
Summarized Condensed Consolid_7
Summarized Condensed Consolidating Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | Apr. 15, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | $ 95,158 | $ 72,390 | |
Cash flows from investing activities: | |||
Acquisitions of real estate, net of deposits applied | (298,557) | (75,621) | |
Improvements to real estate | (1,230) | (5,401) | |
Purchases of equipment, furniture and fixtures | (2,926) | (1,262) | |
Investment in real estate mortgage and other loans receivable | (14,699) | (2,598) | |
Principal payments received on real estate mortgage and other loans receivable | 11,959 | 893 | |
Repayment of other real estate investment | 2,204 | 0 | |
Escrow deposits for acquisitions of real estate | (22,920) | (1,000) | |
Net proceeds from sales of real estate | 218 | 13,004 | |
Distribution from subsidiary | 0 | 0 | |
Intercompany financing | 0 | 0 | |
Net cash used in investing activities | (325,951) | (71,985) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of common stock, net | $ 149,000 | 195,963 | 130,546 |
Proceeds from the issuance of senior unsecured term loan | 200,000 | 0 | |
Borrowings under unsecured revolving credit facility | 235,000 | 60,000 | |
Payments on unsecured revolving credit facility | (265,000) | (135,000) | |
Payments on senior unsecured term loan | (100,000) | 0 | |
Payments of deferred financing costs | (4,534) | 0 | |
Net-settle adjustment on restricted stock | (2,524) | (1,288) | |
Dividends paid on common stock | (59,155) | (45,827) | |
Distribution to Parent | 0 | 0 | |
Intercompany financing | 0 | 0 | |
Net cash provided by financing activities | 199,750 | 8,431 | |
Net (decrease) increase in cash and cash equivalents | (31,043) | 8,836 | |
Cash and cash equivalents, beginning of period | 36,792 | 6,909 | |
Cash and cash equivalents, end of period | 5,749 | 15,745 | |
Reportable Legal Entities | Parent Guarantor | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | (114) | (7) | |
Cash flows from investing activities: | |||
Acquisitions of real estate, net of deposits applied | 0 | 0 | |
Improvements to real estate | 0 | 0 | |
Purchases of equipment, furniture and fixtures | 0 | 0 | |
Investment in real estate mortgage and other loans receivable | 0 | 0 | |
Principal payments received on real estate mortgage and other loans receivable | 0 | 0 | |
Repayment of other real estate investment | 0 | ||
Escrow deposits for acquisitions of real estate | 0 | 0 | |
Net proceeds from sales of real estate | 0 | 0 | |
Distribution from subsidiary | 59,155 | 45,827 | |
Intercompany financing | (193,325) | (129,251) | |
Net cash used in investing activities | (134,170) | (83,424) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of common stock, net | 195,963 | 130,546 | |
Proceeds from the issuance of senior unsecured term loan | 0 | ||
Borrowings under unsecured revolving credit facility | 0 | 0 | |
Payments on unsecured revolving credit facility | 0 | 0 | |
Payments on senior unsecured term loan | 0 | ||
Payments of deferred financing costs | 0 | ||
Net-settle adjustment on restricted stock | (2,524) | (1,288) | |
Dividends paid on common stock | (59,155) | (45,827) | |
Distribution to Parent | 0 | 0 | |
Intercompany financing | 0 | 0 | |
Net cash provided by financing activities | 134,284 | 83,431 | |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents, beginning of period | 0 | 0 | |
Cash and cash equivalents, end of period | 0 | 0 | |
Reportable Legal Entities | Issuers | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 39,195 | 28,087 | |
Cash flows from investing activities: | |||
Acquisitions of real estate, net of deposits applied | (86,393) | (75,621) | |
Improvements to real estate | (767) | (5,376) | |
Purchases of equipment, furniture and fixtures | (2,922) | (1,193) | |
Investment in real estate mortgage and other loans receivable | (14,699) | (2,598) | |
Principal payments received on real estate mortgage and other loans receivable | 11,959 | 893 | |
Repayment of other real estate investment | 0 | ||
Escrow deposits for acquisitions of real estate | (22,920) | (1,000) | |
Net proceeds from sales of real estate | 218 | 13,004 | |
Distribution from subsidiary | 0 | 0 | |
Intercompany financing | (154,350) | 44,216 | |
Net cash used in investing activities | (269,874) | (27,675) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of common stock, net | 0 | 0 | |
Proceeds from the issuance of senior unsecured term loan | 200,000 | ||
Borrowings under unsecured revolving credit facility | 235,000 | 60,000 | |
Payments on unsecured revolving credit facility | (265,000) | (135,000) | |
Payments on senior unsecured term loan | (100,000) | ||
Payments of deferred financing costs | (4,534) | ||
Net-settle adjustment on restricted stock | 0 | 0 | |
Dividends paid on common stock | 0 | 0 | |
Distribution to Parent | (59,155) | (45,827) | |
Intercompany financing | 193,325 | 129,251 | |
Net cash provided by financing activities | 199,636 | 8,424 | |
Net (decrease) increase in cash and cash equivalents | (31,043) | 8,836 | |
Cash and cash equivalents, beginning of period | 36,792 | 6,909 | |
Cash and cash equivalents, end of period | 5,749 | 15,745 | |
Reportable Legal Entities | Combined Subsidiary Guarantors | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 56,077 | 44,310 | |
Cash flows from investing activities: | |||
Acquisitions of real estate, net of deposits applied | (212,164) | 0 | |
Improvements to real estate | (463) | (25) | |
Purchases of equipment, furniture and fixtures | (4) | (69) | |
Investment in real estate mortgage and other loans receivable | 0 | 0 | |
Principal payments received on real estate mortgage and other loans receivable | 0 | 0 | |
Repayment of other real estate investment | 2,204 | ||
Escrow deposits for acquisitions of real estate | 0 | 0 | |
Net proceeds from sales of real estate | 0 | 0 | |
Distribution from subsidiary | 0 | 0 | |
Intercompany financing | 0 | 0 | |
Net cash used in investing activities | (210,427) | (94) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of common stock, net | 0 | 0 | |
Proceeds from the issuance of senior unsecured term loan | 0 | ||
Borrowings under unsecured revolving credit facility | 0 | 0 | |
Payments on unsecured revolving credit facility | 0 | 0 | |
Payments on senior unsecured term loan | 0 | ||
Payments of deferred financing costs | 0 | ||
Net-settle adjustment on restricted stock | 0 | 0 | |
Dividends paid on common stock | 0 | 0 | |
Distribution to Parent | 0 | 0 | |
Intercompany financing | 154,350 | (44,216) | |
Net cash provided by financing activities | 154,350 | (44,216) | |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents, beginning of period | 0 | 0 | |
Cash and cash equivalents, end of period | 0 | 0 | |
Elimination | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 0 | 0 | |
Cash flows from investing activities: | |||
Acquisitions of real estate, net of deposits applied | 0 | 0 | |
Improvements to real estate | 0 | 0 | |
Purchases of equipment, furniture and fixtures | 0 | 0 | |
Investment in real estate mortgage and other loans receivable | 0 | 0 | |
Principal payments received on real estate mortgage and other loans receivable | 0 | 0 | |
Repayment of other real estate investment | 0 | ||
Escrow deposits for acquisitions of real estate | 0 | 0 | |
Net proceeds from sales of real estate | 0 | 0 | |
Distribution from subsidiary | (59,155) | (45,827) | |
Intercompany financing | 347,675 | 85,035 | |
Net cash used in investing activities | 288,520 | 39,208 | |
Cash flows from financing activities: | |||
Proceeds from the issuance of common stock, net | 0 | 0 | |
Proceeds from the issuance of senior unsecured term loan | 0 | ||
Borrowings under unsecured revolving credit facility | 0 | 0 | |
Payments on unsecured revolving credit facility | 0 | 0 | |
Payments on senior unsecured term loan | 0 | ||
Payments of deferred financing costs | 0 | ||
Net-settle adjustment on restricted stock | 0 | 0 | |
Dividends paid on common stock | 0 | 0 | |
Distribution to Parent | 59,155 | 45,827 | |
Intercompany financing | (347,675) | (85,035) | |
Net cash provided by financing activities | (288,520) | (39,208) | |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents, beginning of period | 0 | 0 | |
Cash and cash equivalents, end of period | $ 0 | $ 0 |
Subsequent Events - (Details)
Subsequent Events - (Details) $ in Thousands | Oct. 01, 2019USD ($)renewal_optionfacilitybed | Oct. 31, 2019USD ($)propertytransaction | Jun. 30, 2019USD ($) | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019USD ($)property | Sep. 30, 2018 |
Subsequent Event [Line Items] | |||||||
Number of properties acquired | property | 20 | ||||||
Weighted average remaining lease term (in years) | 73 years | 73 years | |||||
Aggregate purchase price | $ 303,871 | ||||||
Initial annual cash rents | $ 27,248 | ||||||
Skilled nursing | |||||||
Subsequent Event [Line Items] | |||||||
Number of properties acquired | property | 16 | ||||||
Aggregate purchase price | $ 16,200 | $ 246,099 | |||||
Initial annual cash rents | $ 22,129 | ||||||
Multi-service campuses | |||||||
Subsequent Event [Line Items] | |||||||
Number of properties acquired | property | 3 | ||||||
Aggregate purchase price | $ 45,176 | ||||||
Initial annual cash rents | $ 4,088 | ||||||
Ensign | Customer Concentration Risk | Rental Income | |||||||
Subsequent Event [Line Items] | |||||||
Concentration risk (percent) | 50.00% | 42.00% | 40.00% | 42.00% | |||
Subsequent Events | Kalesta | |||||||
Subsequent Event [Line Items] | |||||||
Number of separate transactions | transaction | 2 | ||||||
Subsequent Events | Kalesta | Skilled nursing | |||||||
Subsequent Event [Line Items] | |||||||
Number of properties acquired | property | 1 | ||||||
Subsequent Events | Kalesta | Multi-service campuses | |||||||
Subsequent Event [Line Items] | |||||||
Number of properties acquired | property | 1 | ||||||
Subsequent Events | Kalesta | Skilled nursing and Multi-service campuses | |||||||
Subsequent Event [Line Items] | |||||||
Weighted average remaining lease term (in years) | 14 years | ||||||
Aggregate purchase price | $ 22,800 | ||||||
Initial annual cash rents | $ 1,900 | ||||||
Subsequent Events | Ensign | |||||||
Subsequent Event [Line Items] | |||||||
Number of facilities leased | facility | 84 | ||||||
Number of beds in leased facilities | bed | 8,531 | ||||||
Reduction to contractual annual cash rent as result of spin | $ 7,800 | ||||||
Subsequent Events | Pennant | |||||||
Subsequent Event [Line Items] | |||||||
Number of facilities leased | facility | 11 | ||||||
Number of beds in leased facilities | bed | 1,444 | ||||||
Initial annual cash rents | $ 7,800 | ||||||
Initial lease term (in years) | 15 years | ||||||
Number of renewal options | renewal_option | 2 | ||||||
Renewal term on lease (in years) | 5 years | ||||||
Subsequent Events | Ensign | Customer Concentration Risk | Rental Income | |||||||
Subsequent Event [Line Items] | |||||||
Concentration risk (percent) | 33.20% | ||||||
Subsequent Events | Pennant | Customer Concentration Risk | Rental Income | |||||||
Subsequent Event [Line Items] | |||||||
Concentration risk (percent) | 4.90% |