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LTC Properties (LTC)

Document and Entity Information

Document and Entity Information - shares9 Months Ended
Sep. 30, 2020Oct. 22, 2020
Document and Entity Information
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateSep. 30,
2020
Entity File Number1-11314
Entity Registrant NameLTC PROPERTIES INC
Entity Incorporation, State or Country CodeMD
Entity Tax Identification Number71-0720518
Entity Address, Address Line One2829 Townsgate Road, Suite 350
Entity Address, City or TownWestlake Village
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code91361
City Area Code805
Local Phone Number981-8655
Title of 12(b) SecurityCommon stock, $.01 par value
Trading SymbolLTC
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding39,242,225
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ3
Entity Central Index Key0000887905
Amendment Flagfalse

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in ThousandsSep. 30, 2020Dec. 31, 2019
Investments:
Land $ 127,774 $ 126,703
Buildings and improvements1,320,990 1,295,899
Accumulated depreciation and amortization(339,833)(312,642)
Operating real estate property, net1,108,931 1,109,960
Properties held-for-sale, net of accumulated depreciation: 2020-$0; 2019-$35,11326,856
Real property investments, net1,108,931 1,136,816
Mortgage loans receivable, net of loan loss reserve: 2020-$2,596; 2019-$2,560257,671 254,099
Real estate investments, net1,366,602 1,390,915
Notes receivable, net of loan loss reserve: 2020-$144; 2019-$18114,297 17,927
Investments in unconsolidated joint ventures7,069 19,003
Investments, net1,387,968 1,427,845
Other assets:
Cash and cash equivalents22,811 4,244
Debt issue costs related to bank borrowings1,546 2,164
Interest receivable31,248 26,586
Straight-line rent receivable24,374 45,703
Lease incentives2,401 2,552
Prepaid expenses and other assets6,896 5,115
Total assets1,477,244 1,514,209
LIABILITIES
Bank borrowings89,900 93,900
Senior unsecured notes, net of debt issue costs: 2020-$696; 2019-$812574,444 599,488
Accrued interest3,300 4,983
Accrued expenses and other liabilities30,779 30,412
Total liabilities698,423 728,783
Stockholders' equity:
Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2020-39,242; 2019-39,752392 398
Capital in excess of par value851,000 867,346
Cumulative net income1,371,202 1,293,482
Cumulative distributions(1,452,177)(1,384,283)
Total LTC Properties, Inc. stockholders' equity770,417 776,943
Non-controlling interests8,404 8,483
Total equity778,821 785,426
Total liabilities and equity $ 1,477,244 $ 1,514,209

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands9 Months Ended12 Months Ended
Sep. 30, 2020Dec. 31, 2019
Properties held-for-sale, accumulated depreciation $ 0 $ 35,113
Mortgage loans receivable, loan loss reserve2,596 2,560
Notes receivable, loan loss reserve $ 144 $ 181
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized60,000 60,000
Common stock, shares issued39,242 39,752
Common stock, shares outstanding39,242 39,752
Senior Unsecured Notes
Debt issue costs, net $ 696 $ 812

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Revenues:
Rental income $ 30,010 $ 38,665 $ 88,320 $ 114,566
Interest income from mortgage loans7,890 7,646 23,487 22,308
Interest and other income273 808 1,257 1,967
Total revenues38,173 47,119 113,064 138,841
Expenses:
Interest expense7,361 7,827 22,617 23,004
Depreciation and amortization9,766 9,932 29,232 29,399
Impairment charges941 941
(Recovery) provision for doubtful accounts(2)(14)(1)153
Transaction costs63 75 197 275
Property tax expense3,351 4,270 11,685 12,566
General and administrative expenses4,814 4,745 14,494 13,912
Total expenses26,294 26,835 79,165 79,309
Other operating income:
Gain on sale of real estate, net30 6,236 44,073 6,736
Operating income11,909 26,520 77,972 66,268
Gain from property insurance proceeds373 373
Loss on unconsolidated joint ventures(620)
Income from unconsolidated joint ventures56 760 287 1,973
Net income12,338 27,280 78,012 68,241
Income allocated to non-controlling interests(121)(88)(292)(257)
Net income attributable to LTC Properties, Inc.12,217 27,192 77,720 67,984
Income allocated to participating securities(103)(112)(339)(298)
Net income available to common stockholders $ 12,114 $ 27,080 $ 77,381 $ 67,686
Earnings per common share:
Basic (in dollars per share) $ 0.31 $ 0.68 $ 1.97 $ 1.71
Diluted (in dollars per share) $ 0.31 $ 0.68 $ 1.97 $ 1.69
Weighted average shares used to calculate earnings per common share:
Basic (in shares)39,061 39,586 39,218 39,565
Diluted (in shares)39,112 39,965 39,269 39,944
Dividends declared and paid per common share $ 0.57 $ 0.57 $ 1.71 $ 1.71
Comprehensive Income:
Net income $ 12,338 $ 27,280 $ 78,012 $ 68,241
Comprehensive income $ 12,338 $ 27,280 $ 78,012 $ 68,241

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in ThousandsParentCumulative Effect of AdoptionParentAs Adjusted BalanceParentCommon StockAs Adjusted BalanceCommon StockCapital in Excess of Par ValueAs Adjusted BalanceCapital in Excess of Par ValueCumulative Net IncomeCumulative Effect of AdoptionCumulative Net IncomeAs Adjusted BalanceCumulative Net IncomeCumulative DistributionsAs Adjusted BalanceCumulative DistributionsNon-controlling InterestsAs Adjusted BalanceNon-controlling InterestsCumulative Effect of AdoptionAs Adjusted BalanceTotal
Balance at beginning of period at Dec. 31, 2018 $ (42,808) $ 782,682 $ 825,490 $ 397 $ 397 $ 862,712 $ 862,712 $ (42,808) $ 1,212,956 $ 1,255,764 $ (1,293,383) $ (1,293,383) $ 7,481 $ 7,481 $ (42,808) $ 790,163 $ 832,971
Balance (in shares) at Dec. 31, 201839,657 39,657
Equity activity
Common stock cash distributions(22,631)(22,631)(22,631)
Vesting of performance-based stock units(300)(300)(300)
Vesting of performance-based stock units (in shares)48
Issuance of restricted stock(1)(1)(1)
Issuance of restricted stock (in shares)78
Stock-based compensation expense1,689 1,689 1,689
Net income20,346 20,346 81 20,427
Non-controlling interests contributions919 919
Non-controlling interest distributions(89)(89)
Other(2,024)(2,024)(2,024)
Other (in shares)(44)
Balance at end of period at Mar. 31, 2019779,761 $ 397 862,376 1,233,302 (1,316,314)8,392 788,153
Balance (in shares) at Mar. 31, 201939,739
Balance at beginning of period at Dec. 31, 2018 $ (42,808) $ 782,682 825,490 $ 397 $ 397 $ 862,712 862,712 $ (42,808) $ 1,212,956 1,255,764 $ (1,293,383)(1,293,383) $ 7,481 7,481 $ (42,808) $ 790,163 832,971
Balance (in shares) at Dec. 31, 201839,657 39,657
Equity activity
Net income68,241
Balance at end of period at Sep. 30, 2019785,434 $ 398 865,721 1,280,940 (1,361,625)8,460 793,894
Balance (in shares) at Sep. 30, 201939,752
Balance at beginning of period at Mar. 31, 2019779,761 $ 397 862,376 1,233,302 (1,316,314)8,392 788,153
Balance (in shares) at Mar. 31, 201939,739
Equity activity
Common stock cash distributions(22,653)(22,653)(22,653)
Issuance of restricted stock(6)(6)(6)
Issuance of restricted stock (in shares)8
Stock-based compensation expense1,623 1,623 1,623
Net income20,446 20,446 88 20,534
Non-controlling interests contributions46 46
Non-controlling interest distributions(87)(87)
Balance at end of period at Jun. 30, 2019779,171 $ 397 863,993 1,253,748 (1,338,967)8,439 787,610
Balance (in shares) at Jun. 30, 201939,747
Equity activity
Common stock cash distributions(22,658)(22,658)(22,658)
Stock option exercises123 $ 1 122 123
Stock option exercises (in shares)5
Stock-based compensation expense1,626 1,626 1,626
Net income27,192 27,192 88 27,280
Non-controlling interest distributions(67)(67)
Other(20)(20)(20)
Balance at end of period at Sep. 30, 2019785,434 $ 398 865,721 1,280,940 (1,361,625)8,460 793,894
Balance (in shares) at Sep. 30, 201939,752
Equity activity
Common stock cash distributions(22,658)(22,658)(22,658)
Stock-based compensation expense1,625 1,625 1,625
Net income12,542 12,542 89 12,631
Non-controlling interest distributions(66)(66)
Balance at end of period at Dec. 31, 2019776,943 $ 398 867,346 1,293,482 (1,384,283)8,483 785,426
Balance (in shares) at Dec. 31, 201939,752
Equity activity
Common stock cash distributions(22,581)(22,581)(22,581)
Vesting of performance-based stock units(586)(586)(586)
Vesting of performance-based stock units (in shares)82
Issuance of restricted stock $ 1 (1)
Issuance of restricted stock (in shares)76
Repurchase of common stock(18,012) $ (6)(18,006)(18,012)
Repurchase of common stock (in shares)(616)
Stock-based compensation expense1,777 1,777 1,777
Net income63,633 63,633 89 63,722
Non-controlling interest distributions(146)(146)
Other(3,545) $ (1)(3,544)(3,545)
Other (in shares)(76)
Balance at end of period at Mar. 31, 2020797,629 $ 392 847,572 1,357,115 (1,407,450)8,426 806,055
Balance (in shares) at Mar. 31, 202039,218
Balance at beginning of period at Dec. 31, 2019776,943 $ 398 867,346 1,293,482 (1,384,283)8,483 785,426
Balance (in shares) at Dec. 31, 201939,752
Equity activity
Net income78,012
Balance at end of period at Sep. 30, 2020770,417 $ 392 851,000 1,371,202 (1,452,177)8,404 778,821
Balance (in shares) at Sep. 30, 202039,242
Balance at beginning of period at Mar. 31, 2020797,629 $ 392 847,572 1,357,115 (1,407,450)8,426 806,055
Balance (in shares) at Mar. 31, 202039,218
Equity activity
Common stock cash distributions(22,359)(22,359)(22,359)
Issuance of restricted stock(7)(7)(7)
Issuance of restricted stock (in shares)25
Stock-based compensation expense1,761 1,761 1,761
Net income1,870 1,870 82 1,952
Non-controlling interest distributions(97)(97)
Balance at end of period at Jun. 30, 2020778,894 $ 392 849,326 1,358,985 (1,429,809)8,411 787,305
Balance (in shares) at Jun. 30, 202039,243
Equity activity
Common stock cash distributions(22,368)(22,368)(22,368)
Stock-based compensation expense1,693 1,693 1,693
Net income12,217 12,217 121 12,338
Non-controlling interest distributions(128)(128)
Other(19)(19)(19)
Other (in shares)(1)
Balance at end of period at Sep. 30, 2020 $ 770,417 $ 392 $ 851,000 $ 1,371,202 $ (1,452,177) $ 8,404 $ 778,821
Balance (in shares) at Sep. 30, 202039,242

CONSOLIDATED STATEMENTS OF EQ_2

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares3 Months Ended
Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019
CONSOLIDATED STATEMENTS OF EQUITY
Common Stock cash distributions $ 0.57 $ 0.57 $ 0.57 $ 0.57 $ 0.57 $ 0.57 $ 0.57

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2020Sep. 30, 2019
OPERATING ACTIVITIES:
Net income $ 78,012 $ 68,241
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization29,232 29,399
Stock-based compensation expense5,231 4,938
Impairment charges941
Gain on sale of real estate, net(44,073)(6,736)
Loss on unconsolidated joint ventures620
Income from unconsolidated joint ventures(287)(1,973)
Income distributions from unconsolidated joint ventures249 2,577
Straight-line rental income(1,701)(3,598)
Adjustment for collectibility of rental income and lease incentives23,214 1,926
Lease incentives funded(50)(322)
Amortization of lease incentives317 281
(Recovery) provision for doubtful accounts(1)153
Other non-cash items, net772 760
Increase in interest receivable(4,662)(4,367)
Decrease in accrued interest payable(1,683)(184)
Net change in other assets and liabilities(502)(1,003)
Net cash provided by operating activities85,629 90,092
INVESTING ACTIVITIES:
Investment in real estate properties(13,581)(38,334)
Investment in real estate developments(13,384)(15,052)
Investment in real estate capital improvements(3,955)(2,121)
Capitalized interest(354)(441)
Proceeds from sale of real estate, net72,141 8,068
Investment in real estate mortgage loans receivable(4,176)(10,919)
Principal payments received on mortgage loans receivable565 565
Investments in unconsolidated joint ventures(6,398)(394)
Proceeds from liquidation of investments in unconsolidated joint ventures17,758 6,601
Advances and originations under notes receivable(1,366)(8,531)
Principal payments received on notes receivable4,732 3,446
Net cash provided by (used in) investing activities51,982 (57,112)
FINANCING ACTIVITIES:
Bank borrowings24,000 73,400
Repayment of bank borrowings(28,000)(20,000)
Principal payments on senior unsecured notes(25,160)(14,667)
Stock repurchase plan(18,012)
Stock option exercises123
Distributions paid to stockholders(67,894)(68,241)
Contribution from non-controlling interests46
Distributions paid to non-controlling interests(371)(243)
Financing costs paid(35)(41)
Withheld vested restricted stock and performance-based stock units(3,564)(2,047)
Other(8)(6)
Net cash used in financing activities(119,044)(31,676)
Increase in cash, cash equivalents and restricted cash18,567 1,304
Cash, cash equivalents and restricted cash, beginning of period4,244 4,764
Cash, cash equivalents and restricted cash, end of period22,811 6,068
Supplemental disclosure of cash flow information:
Interest paid23,531 22,431
Non-cash investing and financing transactions:
Right of use asset1,354
Lease liability1,354
Reclassification of notes receivable to lease incentives $ 300 $ 200

General

General9 Months Ended
Sep. 30, 2020
General
General1. Genera l LTC Properties, Inc., a health care real estate investment trust (“REIT”), was incorporated on May 12, 1992 in the State of Maryland and commenced operations on August 25, 1992. We invest primarily in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including mezzanine lending. We conduct and manage our business as one operating segment, rather than multiple operating segments, for internal reporting and internal decision-making purposes. Our primary objectives are to create, sustain and enhance stockholder equity value and provide current income for distribution to stockholders through real estate investments in seniors housing and health care properties managed by experienced operators. Our primary seniors housing and health care property classifications include skilled nursing centers (“SNF”), assisted living communities (“ALF”), independent living communities (“ILF”), memory care communities (“MC”) and combinations thereof. To meet these objectives, we attempt to invest in properties that provide opportunity for additional value and current returns to our stockholders and diversify our investment portfolio by geographic location, operator, property classification and form of investment. We have prepared consolidated financial statements included herein without audit and in the opinion of management have included all adjustments necessary for a fair presentation of the consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to rules and regulations governing the presentation of interim financial statements. The accompanying consolidated financial statements include the accounts of our company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results for a full year. No provision has been made for federal or state income taxes. Our company qualifies as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As such, we generally are not taxed on income that is distributed to our stockholders. New Accounting Pronouncements New Accounting Standards Adopted by Our Company In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), Leases Topic 842, Leases ● Modify the accounting and lease classification criteria; ​ ● On a quarterly basis, on an individual lease basis, assess the collectibility of substantially all of the lease payments through maturity. If collectibility is not probable, the lease income recorded during the period would be limited to lesser of the income that would have been recognized if collection were probable, and the lease payments received; and ​ ● Exclude the lessor costs that are directly paid by the lessee to third parties on lessor’s behalf from variable payments. However, the lessor costs that are paid by the lessor and reimbursed by the lessee are required to be included in variable payments. As a result of adopting ASU 2016-02 on January 1, 2019, using the modified retrospective transition approach, we evaluated the collectibility of our lease payments and determined that the level of collectibility certainty cannot be achieved for certain operators. Accordingly, we recognized a cumulative effect adjustment to equity of $42,808,000. Additionally, we now report real estate taxes that are reimbursed by our operators as Rental income Property tax expense Consolidated Statements of Income and Comprehensive Income In April 2020, the FASB staff released guidance regarding accounting for lease concessions in response to the novel coronavirus (“COVID-19”) pandemic. The FASB staff guidance indicates that lessors could elect an accounting policy to not evaluate whether rent concessions provided in response to the COVID-19 pandemic are lease modifications. When only the timing of payments is impacted by the rent deferrals, but the amount of the consideration is substantially the same as required by the original lease agreement, the FASB listed two methods for lessors to account for the rent deferrals. We elected the first of the following two methods: ● Account for the rent deferrals as if there were no changes made to the lease agreement. Accordingly, increase the lease receivable and continue to recognize income. ​ ● Account for the rent deferrals as variable lease payments. In 2016, the FASB issued ASU No. 2016-13 , Measurement of Credit Losses on Financial Instruments We adopted ASU 2016-13 on January 1, 2020 and determined our Mortgage loans receivable Notes receivable . ​ The expected credit losses for our financial instruments that are within the scope of ASU 2016-13 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ /(Decrease) ​ ​ ​ ​ ​ ​ ​ Balance ​ in Expected ​ Balance ​ ​ ​ Balance Sheet ​ at ​ Credit Loss ​ at ​ Description ​ Location ​ 12/31/2019 ​ During the Quarter ​ 9/30/2020 ​ Expected credit losses for mortgage loans receivable ​ Mortgage loans receivable, net of loan loss reserve ​ $ 2,560 ​ $ 36 ​ $ 2,596 ​ Expected credit losses for notes receivable ​ Notes receivable, net of loan loss reserve ​ $ 181 ​ $ (37) ​ $ 144 ​ ​ We elected not to measure an allowance for expected credit losses on accrued interest receivable under the expected credit loss standard as we have a policy in place to reserve or write off accrued interest receivable in a timely manner through our quarterly review of the loan and property performance. Therefore, we elected the policy to write off accrued interest receivable by reversing interest income and/or recognizing credit loss expense. As of September 30, 2020, the total balance of accrued interest receivable of $31,248,000 was not included in the measurement of expected credit loss. For the three and nine months ended September 30, 2020 and 2019, Company did not recognize any write-off related to accrued interest receivable.

Real Estate Investments

Real Estate Investments9 Months Ended
Sep. 30, 2020
Real Estate Investments
Real Estate Investments2. Real Estate Investments Assisted living communities, independent living communities, memory care communities and combinations thereof are included in the assisted living property classification (collectively “ALF”). Any reference to the number of properties or facilities, number of units, number of beds, number of operators and yield on investments in real estate are unaudited and outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board. Owned Properties. Our Owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 10 to 15 years . Each lease is a triple net lease which requires the lessee to pay all taxes, insurance, maintenance and repairs, capital and non-capital expenditures and other costs necessary in the operations of the facilities. Many of the leases contain renewal options. The leases provide for fixed minimum base rent during the initial and renewal periods. The majority of our leases contain provisions for specified annual increases over the rents of the prior year that are generally computed in one of four ways depending on specific provisions of each lease: (i) a specified percentage increase over the prior year’s rent, generally between 2.0% and 2.5% ; (ii) a calculation based on the Consumer Price Index; (iii) as a percentage of facility net patient revenues in excess of base amounts; or (iv) specific dollar increases. Our leases that contain fixed annual rental escalations and/or have annual rental escalations that are contingent upon changes in the Consumer Price Index, are generally recognized on a straight-line basis over the minimum lease period. Certain leases have annual rental escalations that are contingent upon changes in the gross operating revenues of the property. This revenue is not recognized until the appropriate contingencies have been resolved. The following table summarizes our investments in owned properties at September 30, 2020 (dollar amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Percentage ​ Number ​ Number of ​ Investment ​ ​ Gross ​ of ​ of ​ SNF ​ ALF ​ per Type of Property ​ Investment ​ Investment ​ Properties (1) ​ Beds ​ Units ​ Bed/Unit Assisted Living ​ $ 880,307 ​ 60.8 % 107 ​ — ​ 6,164 ​ $ 142.81 ​ Skilled Nursing ​ ​ 557,097 ​ 38.4 % 51 ​ 6,277 ​ 212 ​ $ 85.85 ​ Other (2) ​ ​ 11,360 ​ 0.8 % 1 ​ 118 ​ — ​ ​ — ​ Total ​ $ 1,448,764 ​ 100.0 % 159 ​ 6,395 ​ 6,376 ​ ​ ​ ​ (1) We own properties in 27 states that are leased to 29 different operators. ​ (2) Includes three parcels of land held-for-use, and one behavioral health care hospital. Future minimum base rents receivable under the remaining non-cancelable terms of operating leases excluding the effects of straight-line rent receivable, amortization of lease incentives and renewal options are as follows (in thousands): ​ ​ ​ ​ ​ ​ Cash ​ ​ Rent (1) 2020 ​ $ 33,758 ​ 2021 ​ 143,139 ​ 2022 ​ 131,294 ​ 2023 ​ 132,827 ​ 2024 ​ 131,766 ​ Thereafter ​ 632,675 ​ (1) Represents contractual cash rent, except for Anthem Memory Care (“Anthem”) master lease which is based on estimated cash payments. See below for more disclosure relating to Anthem. An affiliate of Senior Lifestyle Corporation (“Senior Lifestyle”) operates 23 properties under a master lease with a combination of independent living, assisted living and memory care units. Senior Lifestyle was provided deferral of partial rent in April 2020 and failed to pay full rent during the second quarter of 2020. In accordance with ASC 842, we evaluated the collectibility of receiving substantially all of our lease payments from the Senior Lifestyle master lease through maturity and determined that we did not have the level of certainty required by the standard. Accordingly, we wrote-off a total $17,742,000 of straight-line rent receivable and lease incentives related to this master lease during the second quarter of 2020 and we accounted for the Senior Lifestyle master lease on a cash basis effective July 2020. Contractual rent for April through September 2020 was $9,121,000 of which we collected $5,325,000. In October 2020, we received $1,341,000 of their contractual rent of $1,561,000. The outstanding accounts receivable balance on our Consolidated Balance Sheets During the third quarter of 2020, an operator paid $542,000 of its contractual rent of $1,299,000. Additionally, during the three months ended September 30, 2020, we consolidated our two master leases with the operator into one combined master lease. Under the new combined master lease, we agreed to abate $570,000 of third quarter rent along with $80,000 that had been deferred in second quarter of 2020, totaling $650,000. Additionally, the new combined master lease allows the operator to defer rent as needed through March 31, 2021. In September 2020, the operator deferred $186,000 of its $374,000 contractual rent. During the three months ended September 30, 2020, we recorded an impairment charge of $941,000 related to an assisted living community that was operated by the operator. The community was closed in October 2020 and we are evaluating our options for this community. In accordance with ASC 842, we evaluated the collectibility of receiving substantially all of our lease payments under our master lease with the operator through maturity and determined that we did not have the level of certainty required by the standard. Accordingly, we wrote-off $1,156,000 of straight-line rent receivable related to this master lease during the third quarter of 2020. On August 10, 2020, in the Quarterly Report on Form 10-Q, Genesis Healthcare, Inc. (“Genesis”) reported doubt regarding its ability to continue as a going concern. Accordingly, in accordance with ASC 842, we evaluated the collectibility of receiving substantially all of our lease payments from the Genesis master lease through maturity and determined that we did not have the level of certainty required by the standard. Accordingly, we wrote-off $4,316,000 of straight-line rent receivable related to this master lease during the third quarter of 2020. Genesis is current on rent payments through October 2020. Anthem operates 11 memory care communities under a master lease and was placed in default in 2017 resulting from Anthem’s partial payment of its minimum rent. However, we did not enforce our rights and remedies pertaining to the event of default, under the stipulation that Anthem achieves sufficient performance and pays agreed upon rent. In accordance with ASC 842 lease accounting guidance, at January 1, 2019, we evaluated the collectibility of straight-line rent receivable and lease incentive balances related to Anthem and determined that it was not probable that we would collect substantially all of the contractual lease obligations through maturity. Accordingly, we wrote-off the balances to equity as of January 1, 2019, as required by the ASC 842 transition guidance. We continue to evaluate the collectibility of our Anthem master lease on a quarterly basis. We currently anticipate that Anthem will pay $9,900,000 of annual cash rent during 2020. However, COVID-19 may adversely impact Anthem’s operating cash flow and ability to pay rent. Anthem is current on 2020 rent payments through October 2020. Preferred Care, Inc. (“Preferred Care”) and affiliated entities filed for Chapter 11 bankruptcy in 2017 as a result of a multi-million-dollar judgment in a lawsuit in Kentucky against Preferred Care and certain affiliated entities. Preferred Care leased 24 properties (“Properties”) under two master leases from us and the Preferred Care operating entities that sublease those Properties did not file for bankruptcy. In accordance with ASC 842 lease accounting guidance, at January 1, 2019, we evaluated the collectibility of straight-line rent receivable and lease incentive balances related to Preferred Care and determined it was not probable that we would collect substantially all of the contractual lease obligations through maturity. Accordingly, we wrote-off the balances to equity as of January 1, 2019, as required by the ASC 842 transition guidance. Preferred Care did not affirm our master leases and subsequently filed for Chapter 7 bankruptcy in 2019. During the fourth quarter of 2019, we entered into multiple contracts to sell the Properties, all of which were completed during the first quarter of 2020. The combined net proceeds from the sales, including the 2019 transactions, was approximately $77,900,000 resulting in a total gain of approximately $44,000,000. The Properties had a combined net book value of $35,600,000. The 21 properties sold in the first quarter of 2020, which included 2,411 beds in Arizona, Colorado, Iowa, Kansas and Texas, were sold through multiple transactions and generated net proceeds of approximately $72,100,000. These 21 properties had a combined net book value of $29,100,000 and resulted in total gain on sale of $44,073,000. Senior Care Centers, LLC and affiliates and subsidiaries (“Senior Care”) filed for Chapter 11 bankruptcy as a result of lease terminations from certain landlords and on-going operational challenges in December 2018. Senior Care did not pay us December 2018 rent and accordingly, in December 2018, we placed Senior Care on a cash basis. In accordance with ASC 842 lease accounting guidance, at January 1, 2019, we evaluated the collectibility of the straight-line rent receivable and lease incentive balance related to Senior Care and determined it was not probable that we would collect substantially all of the contractual lease obligations through maturity. Accordingly, we wrote-off the balances to equity as of January 1, 2019, as required by the ASC 842 transition guidance. During 2019, we received a court ordered reimbursement from Senior Care for the December 2018 unpaid rent, late fees and legal costs totaling $1,596,000. In March 2020, Senior Care emerged from bankruptcy and affirmed our master lease. We continue to evaluate the collectibility of our Senior Care master lease on a quarterly basis. Senior Care is current on all its rent, real estate property tax escrow and maintenance deposits through October 2020. During the third quarter of 2020, we consolidated our four leases with Brookdale Senior Living Communities, Inc (“Brookdale”) into one master lease and extended the term by one year to December 31, 2021. The master lease provides three renewal options consisting of a four-year renewal option, a five-year renewal option and a 10-year renewal option. The notice period for the first renewal option is January 1, 2021 to April 30, 2021. The economic terms of rent remain the same as the consolidated rent terms under the previous four separate lease agreements. ​ The following table summarizes components of our rental income for the three and nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, Rental Income ​ ​ 2020 ​ ​ 2019 ​ ​ 2020 ​ ​ 2019 ​ Base cash rental income ​ $ 32,006 (1) $ 33,754 ​ $ 98,357 (1) $ 100,687 ​ Variable cash rental income ​ ​ 3,356 (2) ​ 3,926 (2) ​ 11,793 (2) ​ 12,488 (2) Straight-line rent ​ ​ 228 ​ ​ 1,085 ​ ​ 1,701 ​ ​ 3,598 ​ Adjustment for collectability of rental income and lease incentives ​ ​ (5,472) (3) ​ — ​ ​ (23,214) (4) ​ (1,926) ​ Amortization of lease incentives ​ ​ (108) ​ ​ (100) ​ ​ (317) ​ ​ (281) ​ Total ​ $ 30,010 ​ $ 38,665 ​ $ 88,320 ​ $ 114,566 ​ (1) Decreased primarily due to reduction of rent from Preferred Care portfolio sale and Senior Lifestyle rent shortfall and abated and deferred rent partially offset by increase in rent from acquisitions and completion of development projects and contractual rent increases. ​ (2) The variable rental income for the three and nine months ended September 30, 2020, includes contingent rental income of $4 and $108 , respectively, and reimbursement of real estate taxes by our lessees of $3,352 and $11,685 , respectively. The variable rental income for the three and nine months ended September 30, 2019 includes contingent rental income of $77 and $394 , respectively, and reimbursement of real estate taxes by our lessees of $3,849 and $12,094 , respectively. ​ (3) Represents the write-off of the Genesis and another operator straight-line rent receivable balances. ​ (4) Represents the write-off of the Senior Lifestyle straight-line rent receivable and lease incentive balances and (3) above. Some of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements (dollar amount in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ ​ Gross ​ ​ Carrying ​ Option ​ State ​ Property ​ Properties ​ ​ Investments ​ ​ Value ​ Window ​ California ​ ALF/MC ​ 2 ​ $ 38,895 ​ $ 35,836 ​ 2024-2029 ​ California ​ ALF ​ 2 ​ ​ 30,609 ​ ​ 17,088 ​ 2021-TBD (1) Florida ​ MC ​ 1 ​ ​ 14,340 ​ ​ 12,631 ​ 2028-2029 ​ Kentucky and Ohio ​ MC ​ 2 ​ ​ 30,152 ​ ​ 27,320 ​ 2028-2029 ​ Texas ​ MC ​ 2 ​ ​ 25,265 ​ ​ 23,870 ​ 2025-2027 ​ South Carolina ​ ALF/MC ​ 1 ​ ​ 11,680 ​ ​ 10,358 ​ 2028-2029 ​ Total ​ ​ ​ ​ ​ $ 150,941 ​ $ 127,103 ​ ​ ​ (1) The option window ending date will be either 24 months or 48 months after the option window commences, based on certain contingencies. On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, and on March 13, 2020, the United States declared a national emergency with regard to COVID-19. As required by ASC 842, we assess the collectibility of our lease payments through maturity on a quarterly basis. At September 30, 2020, in conjunction with the continued levels of uncertainty related to the adverse effects of COVID-19, we assessed the probability of collecting substantially all of our lease payments through maturity and concluded that we did not have sufficient information available to evaluate the impact of COVID-19 on the collectibility of our lease payments. The extent to which COVID-19 could impact our operators and the collectibility of our future lease payments will depend on the future developments including the financial impact significance and the duration of the pandemic. We will continue to evaluate the collectibility of our lease payments through maturity on a quarterly basis, including the financial impact of COVID-19. If we determine that we do not have the level of collectibility certainty required by ASC 842 related to certain operators, all or a portion of our straight- line rent receivable and other lease receivables will be written-off. In recognition of the unique conditions affecting our operators, we have agreed to rent deferrals for certain operators totaling $1,176,000, or 1.5% of contractual rent, for April through September 2020. Additionally, we granted rent deferrals of $566,000 for October 2020. Through October 2020, we have received $553,000 of rent deferral payments. The remaining $1,189,000 balance of deferred rent is due to LTC over the next 24 months or upon the operators’ receipt of government funds from the U.S. Coronavirus Aid, Relief, and Economic Security ACT (the “CARES Act”). Acquisitions and Developments: The following table summarizes our acquisitions for the nine months ended September 30, 2020 and 2019 (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Number ​ Number ​ ​ ​ ​ Purchase ​ Transaction ​ Acquisition ​ of ​ of Year ​ Type of Property ​ Price ​ Costs (1) ​ Costs ​ Properties ​ Beds/Units 2020 ​ Skilled Nursing (2) ​ $ 13,500 ​ $ 81 ​ $ 13,581 1 ​ 140 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Assisted Living (3) ​ $ 16,719 ​ $ 176 ​ $ 16,895 ​ 1 ​ 74 ​ ​ Skilled Nursing (4) ​ ​ 19,500 ​ ​ 77 ​ ​ 19,577 ​ 1 ​ 90 ​ ​ Land (5) ​ ​ 2,732 ​ ​ 49 ​ ​ 2,781 ​ — ​ — Total ​ ​ ​ $ 38,951 ​ $ 302 ​ $ 39,253 ​ 2 ​ 164 (1) Represents cost associated with our acquisitions; however, upon adoption of ASU 2017-01, our acquisitions meet the definition of an asset acquisition resulting in capitalization of transaction costs to the properties’ basis. For our land purchases with forward development commitments, transaction costs are capitalized as part of construction in progress. Transaction costs per our Consolidated Statements of Income and Comprehensive Income represents current and prior year transaction costs due to timing and terminated transactions. ​ (2) We acquired a SNF located in Texas. ​ (3) We entered into a joint venture (“ JV”) (consolidated on our financial statements) to purchase an existing operational 74 -unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,971 in cash. Our economic interest in the real estate JV is approximately 95% . ​ (4) We acquired a newly constructed 90 -bed SNF located in Missouri. ​ (5) We acquired a parcel of land adjacent to an existing SNF in California. Additionally, we acquired a parcel of land and developed a 90 -bed SNF in Missouri. The commitment totals approximately $17,400 . During he following in development and improvement projects (in thousands) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2020 ​ 2019 Type of Property ​ Developments ​ Improvements ​ Developments ​ Improvements ​ Assisted Living Communities ​ $ 4,491 ​ $ 3,941 ​ $ 10,266 ​ $ 1,826 ​ Skilled Nursing Centers ​ ​ 8,893 ​ ​ 14 ​ ​ 4,786 ​ ​ — ​ Other ​ ​ — ​ ​ — ​ ​ — ​ ​ 295 ​ Total ​ $ 13,384 ​ $ 3,955 ​ $ 15,052 ​ $ 2,121 ​ ​ Completed Developments. (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Type ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ of ​ ​ ​ ​ Total Year ​ Type of Project ​ Properties ​ Property ​ Beds/Units ​ State ​ Investment 2020 ​ Development ​ 1 ​ ALF/MC ​ 78 ​ Oregon (1) $ 18,447 ​ ​ Development ​ 1 ​ SNF ​ 90 ​ Missouri ​ ​ 13,272 Total ​ ​ ​ 2 ​ ​ ​ 168 ​ ​ ​ $ 31,719 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Development ​ 1 ​ SNF ​ 143 ​ Kentucky ​ $ 24,496 ​ ​ Development ​ 1 ​ ILF/ALF/MC ​ 110 ​ Wisconsin ​ ​ 21,893 Total ​ ​ ​ 2 ​ ​ ​ 253 ​ ​ ​ $ 46,389 (1) Certificate of occupancy was received in March 2020, however, due to the COVID-19 pandemic, we consented to delay the opening of this community to September 2020. Properties Sold. (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ of ​ ​ Sales ​ ​ Carrying ​ ​ Net ​ Year ​ State ​ Properties ​ Properties ​ Beds/Units ​ ​ Price ​ ​ Value ​ ​ Gain ​ 2020 ​ N/A ​ N/A ​ — ​ — ​ $ — ​ $ — ​ $ 108 (1) ​ ​ Arizona ​ SNF ​ 1 ​ 194 ​ ​ 12,550 ​ ​ 2,229 ​ ​ 10,292 ​ ​ ​ Colorado ​ SNF ​ 3 ​ 275 ​ ​ 15,000 ​ ​ 4,271 ​ ​ 10,364 ​ ​ ​ Iowa ​ SNF (2) 7 ​ 544 ​ ​ 14,500 ​ ​ 4,886 ​ ​ 9,029 ​ ​ ​ Kansas ​ SNF ​ 3 ​ 250 ​ ​ 9,750 ​ ​ 7,438 ​ ​ 1,993 ​ ​ ​ Texas ​ SNF ​ 7 ​ 1,148 ​ ​ 23,000 ​ ​ 10,260 ​ ​ 12,287 ​ Total 2020 (3) ​ ​ ​ ​ ​ 21 ​ 2,411 ​ $ 74,800 ​ $ 29,084 ​ $ 44,073 (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ N/A ​ N/A ​ — ​ — ​ $ — ​ $ — ​ $ 500 (4) ​ ​ Georgia ​ SNF ​ 1 ​ 148 ​ ​ 7,920 ​ ​ 1,639 ​ ​ 6,236 ​ Total 2019 ​ ​ ​ ​ ​ 1 ​ 148 ​ $ 7,920 ​ $ 1,639 ​ $ 6,736 ​ ( (1) Gain recognized from the $90 repayment of a holdback related to a property sold during the fourth quarter of 2019 and the reassessment adjustment of $18 from the holdback under the expected value model per ASC Topic 606, Contracts with Customers (“ASC 606”). ​ (2) This transaction includes a holdback of $838 which is held in an interest-bearing account with an escrow holder on behalf of the buyer for potential specific losses. Using the expected value model per ASC 606, we estimated and recorded the holdback value of $471 . During the nine months ended September 30, 2020, we received $150 of the holdback. We reassessed the holdback under the expected value model and recorded an additional gain of $115 . ​ (3) Properties sold within the Preferred Care portfolio. ​ (4) Gain recognized from the repayment of a holdback related to a portfolio of six ALFs sold during the second quarter of 2018. ​ Mortgage Loans. (dollar amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Percentage ​ Number of ​ Investment ​ ​ ​ ​ Gross ​ of ​ of ​ ​ ​ ​ ​ SNF ​ per Interest Rate (1) ​ Maturity ​ Investment ​ Property ​ Investment ​ Loans (2) ​ Properties (3) ​ Beds ​ Bed/Unit 9.9% ​ 2043 ​ $ 186,865 ​ SNF ​ 71.8 % 1 ​ 15 ​ 1,941 ​ $ 96.27 9.2% ​ 2045 ​ ​ 38,853 ​ SNF ​ 14.9 % 1 ​ 4 ​ 501 ​ $ 77.55 9.4% ​ 2045 ​ 19,624 ​ SNF ​ 7.6 % 1 ​ 2 ​ 205 ​ $ 95.73 9.6% ​ 2045 ​ ​ 14,925 ​ SNF ​ 5.7 % 1 ​ 1 ​ 157 ​ $ 95.06 Total ​ ​ ​ $ 260,267 ​ ​ ​ 100.0 % 4 ​ 22 ​ 2,804 ​ $ 92.82 (1) The majority of the mortgage loans provide for annual increases in the interest rate after a certain time period increasing by 2.25% . ​ (2) Some loans contain certain guarantees, provide for certain facility fees and the majority of the mortgage loans have a 30-year term. ​ (3) The properties securing these mortgage loans are located in one state and are operated by one operator. The following table summarizes our mortgage loan activity for the nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ ​ ​ Amounts ​ Origination/Funding ​ Originations and funding under mortgage loans receivable ​ $ 4,176 (1) $ 10,919 (2) Scheduled principal payments received ​ ​ (565) ​ ​ (565) ​ Mortgage loan premium amortization ​ ​ (3) ​ ​ (3) ​ Provision for loan loss reserve ​ ​ (36) ​ ​ (104) ​ Net increase in mortgage loans receivable ​ $ 3,572 ​ $ 10,247 ​ (1) During 2020, we funded an additional $2,000 under and existing mortgage loan. The incremental funding bears interest at 8.89% and escalating by 2.25% thereafter. ​ (2) During 2019, we funded an additional $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41% fixed for two years and escalating by 2.25% thereafter.

Investment in Unconsolidated Jo

Investment in Unconsolidated Joint Ventures9 Months Ended
Sep. 30, 2020
Investment in Unconsolidated Joint Ventures
Investment in Unconsolidated Joint Ventures3. Investment in Unconsolidated Joint Ventures We had a preferred equity investment in an unconsolidated joint venture that owned four communities located in Arizona, providing independent living, assisted living and memory care services. During the fourth quarter of 2019, the JV signed a contract to sell the four properties comprising the JV (“Properties”). The contract was subject to standard due diligence and other contingencies to close, all of which were met in January 2020. Accordingly, based on the information available to us regarding alternatives and courses of action, we performed a recoverability test on the carrying value of our preferred equity investment and concluded that a portion of our preferred equity investment will not be recoverable. Therefore, we recorded an other than temporary impairment loss from investment in unconsolidated joint ventures of $5,500,000 and wrote our preferred equity investment down to its estimated fair value at December 31, 2019. Upon sale of the Properties, we received partial liquidation proceeds totaling $17,758,000 during the second and third quarters of 2020. During the nine months ended September 30, 2020, we incurred an additional $620,000 of loss. We anticipate receiving additional proceeds of $729,000 through March 31, 2021. During the nine months ended September 30, 2020, we provided preferred capital contribution commitments to two joint ventures. We determined that each of these JVs meets the accounting criteria to be considered a variable interest entity (“VIE”). We are not the primary beneficiary of the VIEs as we do not have both: 1) the power to direct the activities that most significantly affect the VIE’s economic performance, and 2) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. However, we do have significant influence over the JVs. Therefore, we accounted for the joint venture investments using the equity method of accounting. The following table provides information regarding these preferred equity investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Type ​ Total ​ ​ Contractual ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ Preferred ​ ​ Cash ​ ​ of ​ ​ Investment ​ ​ Carrying ​ State ​ Properties ​ Investment ​ Return ​ ​ Portion ​ ​ Beds/ Units ​ ​ Commitment ​ ​ Value ​ Washington ​ UDP ​ Preferred Equity (1) 12 % ​ 7 % ​ — ​ $ — (1) $ 6,340 (1) Washington ​ UDP ​ Preferred Equity (2) 12 % ​ 8 % ​ — ​ ​ 13,000 (2) ​ - (2) Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — ​ $ 13,000 ​ $ 6,340 ​ (1) Invested $6,340 of preferred equity in an entity that will develop a 95 -unit ALF/MC in Washington. Our investment represents 15.5% of the estimated total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the internal rate of return (“IRR”) is 8% . After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging between 12% to 14% . ​ (2) Entered into a preferred equity agreement in an entity that will develop and own a 267 -unit ILF/ALF in Washington. Our investment represents 11.6% of the estimated total investment. Upon the satisfaction of certain conditions which are projected to be met by year-end, LTC will invest $13,000 into the entity. The preferred equity investment will earn an initial cash rate of 8% and a 12% IRR. The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures for the nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ ​ ​ ​ ​ of ​ ​ Capital ​ ​ Income ​ ​ Cash Interest ​ Year ​ Properties ​ ​ Contribution ​ ​ Recognized ​ ​ Received ​ 2020 ​ ALF/MC/ILF (1) $ 58 (1) $ 231 (1) $ 231 (1) ​ ​ UDP ​ ​ 6,340 (2) ​ 56 (2) ​ 18 (2) Total ​ ​ ​ $ 6,398 ​ $ 287 ​ $ 249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ ALF/MC/ILF ​ $ 394 (1) $ 614 (1) $ 1,166 (1) ​ ​ ALF/ILF/MC (3) ​ — (3) ​ 955 (3) ​ 979 (3) ​ ​ ALF/MC (4) ​ — (4) ​ 404 (4) ​ 432 (4) Total ​ ​ ​ $ 394 ​ $ 1,973 ​ $ 2,577 ​ (1) Relates to our preferred equity investment in Arizona discussed above with a total preferred return of 15% . During the nine months ended September 30, 2020, the properties comprising the JV were sold. ​ (2) During the third quarter of 2020, we provided a total preferred equity investment of $6,340 to a JV for the development of a 95 -unit ALF and MC. ​ (3) We had a $2,900 mezzanine loan commitment for a 99 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance. During the third quarter of 2019, the mezzanine loan was paid off. ​ (4) We had a $3,400 mezzanine loan commitment for the development of a 127 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. During the first quarter of 2019, the mezzanine loan was paid off.

Notes Receivable

Notes Receivable9 Months Ended
Sep. 30, 2020
Notes Receivable.
Notes Receivable4. Notes Receivable Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components as of September 30, 2020 and December 31, 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ December 31, 2019 Mezzanine loans $ 8,566 ​ $ 13,284 ​ Other loans ​ 5,875 ​ ​ 4,824 ​ Notes receivable reserve ​ (144) ​ ​ (181) ​ Total $ 14,297 ​ $ 17,927 ​ The following table summarizes our notes receivable activity for the nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2020 ​ ​ 2019 ​ Advances under notes receivable $ 1,366 (1) $ 8,531 (2) Principal payments received under notes receivable ​ (4,732) ​ ​ (3,446) ​ Reclassified to lease incentives ​ (300) (3) ​ (200) (3) Notes receivable reserve ​ 36 ​ ​ (48) ​ Total $ (3,630) ​ $ 4,837 ​ (1) We originated a $1,250 note agreement, funding $1,000 with a commitment to fund $250 . The note bears interest at 5.0% . ​ (2) We originated a $6,800 mezzanine loan commitment for the development of a 204 -unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months . Additionally, we originated a $1,400 note agreement, funding $1,124 with a commitment to fund $276 . The note bears interest at 7.0% . Further, we originated a $550 note agreement, funding $400 with a commitment to fund $150 . The note bears interest at 7.5% . ​ (3) Represents interim working capital loans related to development projects which matured upon completion of the development projects and commencement of the master leases.

Lease Incentives

Lease Incentives9 Months Ended
Sep. 30, 2020
Lease Incentives
Lease Incentives5. Lease Incentives Our lease incentive balances at September 30, 2020 and December 31, 2019 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ December 31, 2019 Non-contingent lease incentives ​ $ 2,401 ​ $ 2,552 ​ The following table summarizes our lease incentives activity for the nine months ended September 30, 2020 and 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ Funding ​ ​ Amortization ​ ​ Adjustment ​ ​ Funding ​ ​ Amortization ​ ​ Adjustment ​ Non-contingent lease incentives ​ $ 50 ​ $ (317) ​ $ 115 (1) $ 322 ​ $ (281) ​ $ (11,893) (2) (1) We reclassified a $300 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. Additionally, we wrote-off $185 of lease incentive related to a master lease for which we determined it was not probable we will collect substantially all of the contractual lease obligations through maturity. See Note 2. Real Estate Investments for further discussion. ​ (2) In accordance with ASC 842 lease standard adopted on January 1, 2019, we wrote-off $12,093 of lease incentives related to leases for which we determined it is not probable we will collect substantially all of the contractual lease obligation through maturity. See Note 1. General for further discussion. Additionally, we reclassified a $200 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. Non-contingent lease incentives represent payments made to our lessees for various reasons including entering into a new lease or lease amendments and extensions. Contingent lease incentives represent potential contingent earn-out payments that may be made to our lessees in the future, as part of our lease agreements. From time to time, we may commit to provide contingent payments to our lessees, upon our properties achieving certain rent coverage ratios. Once the contingent payment becomes probable and estimable, the contingent payment is recorded as a lease incentive. Lease incentives are amortized as a yield adjustment to rental income over the remaining life of the lease.

Debt Obligations

Debt Obligations9 Months Ended
Sep. 30, 2020
Debt Obligations
Debt Obligations6. Debt Obligations Bank Borrowings. We have an unsecured credit agreement that provides for a revolving aggregate commitment of the lenders of up to $600,000,000 with the opportunity to increase the commitment size of the credit agreement up to a total of $1,000,000,000 . The unsecured credit agreement matures on June 27, 2022 and provides for a one-year extension option at our discretion, subject to customary conditions. Based on our leverage at September 30, 2020, the facility provides for interest annually at LIBOR plus 115 basis points and a facility fee of 20 basis points. At September 30, 2020, we were in compliance with all covenants. Senior Unsecured Notes. The debt obligations by component as of September 30, 2020 and December 31, 2019 are as follows ( dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2020 ​ At December 31, 2019 ​ ​ ​ Applicable ​ ​ ​ Available ​ ​ ​ Available ​ ​ ​ Interest ​ Outstanding ​ for ​ Outstanding ​ for ​ Debt Obligations ​ Rate (1) ​ Balance ​ Borrowing ​ Balance ​ Borrowing ​ Bank borrowings ​ 1.33% ​ $ 89,900 ​ $ 510,100 ​ $ 93,900 ​ $ 506,100 ​ Senior unsecured notes, net of debt issue costs ​ 4.36% ​ ​ 574,444 ​ ​ — ​ ​ 599,488 ​ ​ 21,500 ​ Total ​ 3.95% ​ $ 664,344 ​ $ 510,100 ​ $ 693,388 ​ $ 527,600 ​ (1) Represents weighted average of interest rate as of September 30, 2020. Our borrowings and repayments are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ Debt Obligations ​ ​ Borrowings ​ ​ Repayments ​ Borrowings ​ Repayments ​ Bank borrowings ​ $ 24,000 ​ $ (28,000) ​ $ 73,400 ​ $ (20,000) ​ Senior unsecured notes ​ ​ — ​ ​ (25,160) ​ ​ — ​ ​ (14,667) ​ Total ​ $ 24,000 ​ $ (53,160) ​ $ 73,400 ​ $ (34,667) ​ ​

Equity

Equity9 Months Ended
Sep. 30, 2020
Equity
Equity7. Equity Common Stock. During the nine months ended September 30, 2020 and 2019, we acquired 76,574 shares and 45,030 shares, respectively, of common stock held by employees who tendered owned shares to satisfy tax withholding obligations. Stock Repurchase Plan. Non-controlling Interests. As of September 30, 2020, we have the following consolidated VIEs (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Investment ​ ​ ​ Property ​ ​ ​ ​ Consolidated ​ ​ Non-Controlling ​ Year ​ Purpose ​ Type ​ State ​ ​ Assets ​ ​ Interests ​ 2019 ​ Owned real estate ​ ALF/MC ​ VA ​ $ 16,895 ​ $ 919 ​ 2018 ​ Owned real estate ​ ILF ​ OR ​ ​ 14,400 ​ ​ 2,858 ​ 2018 ​ Owned real estate and development ​ ALF/MC ​ OR ​ ​ 18,447 ​ ​ 1,081 ​ 2017 ​ Owned real estate and development ​ ILF/ALF/MC ​ WI ​ ​ 22,007 ​ ​ 2,305 ​ 2017 ​ Owned real estate ​ ALF/MC ​ SC ​ ​ 11,680 ​ ​ 1,241 ​ Total ​ ​ ​ ​ ​ ​ ​ $ 83,429 ​ $ 8,404 ​ ​ ​ Available Shelf Registration. Distributions. (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ Declared ​ Paid ​ Declared ​ Paid ​ ​ Common Stock (1) ​ $ 67,894 (2) $ 67,894 (2) $ 68,241 (3) $ 68,241 (3) ​ (1) Represents $0.19 per share per month for the nine months ended September 30, 2020 and 2019. ​ (2) Includes $586 related to the vesting of performance-based stock units. ​ (3) Includes $300 related to the vesting of performance-based stock units. In October 2020, we declared a monthly cash dividend of $0.19 per share on our common stock for the months of October, November and December 2020, payable on October 30, November 30, and December 31, 2020, respectively, to stockholders of record on October 22, November 20, and December 23, 2020, respectively. Stock-Based Compensation Under our 2015 Equity Participation Plan (“the 2015 Plan”), 1,400,000 shares of common stock have been reserved for awards, including nonqualified stock option grants and restricted stock grants to officers, employees, non-employee directors and consultants. The terms of the awards granted under the 2015 Plan are set by our compensation committee at its discretion. At September 30, 2020, we had 15,000 stock options outstanding and exercisable. During the nine months ended September 30, 2020 and 2019, no stock options were granted. The stock options exercised during the nine months ended September 30, 2020 and 2019 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Options ​ Exercise ​ Option ​ Market ​ ​ Exercised ​ Price ​ Value ​ Value (1) 2020 ​ — ​ $ — ​ $ — ​ $ — ​ 2019 ​ 5,000 ​ $ 24.65 ​ $ 123,000 ​ $ 233,000 ​ (1) (1) As of exercise date. The following table summarizes our restricted stock and performance-based stock units activity for the nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ Outstanding, January 1 ​ ​ 345,633 ​ ​ 325,750 ​ Granted ​ ​ 167,375 ​ ​ 147,608 ​ Vested ​ ​ (166,051) (1) ​ (127,725) (2) Outstanding, September 30 ​ ​ 346,957 ​ ​ 345,633 ​ (1) Includes 81,574 performance-based stock units. ​ (2) Includes 48,225 performance-based stock units. During the nine months ended September 30, 2020 and 2019, we granted restricted stock and performance-based stock units under the 2015 Plan as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ No. of ​ Price per ​ ​ ​ Year ​ Shares/Units ​ Share ​ Vesting Period ​ 2020 ​ 76,464 ​ $ 48.95 ​ ratably over 3 years ​ ​ ​ 66,027 ​ $ 49.98 ​ TSR targets (1) ​ ​ ​ 9,884 ​ $ 38.45 ​ May 27, 2021 ​ ​ ​ 15,000 ​ $ 38.45 ​ ratably over 3 years ​ ​ ​ 167,375 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ 78,276 ​ $ 46.54 ​ ratably over 3 years ​ ​ ​ 60,836 ​ $ 46.54 ​ TSR targets (1) ​ ​ ​ 8,496 ​ $ 44.73 ​ May 29, 2020 ​ ​ ​ 147,608 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in 4 years with acceleration opportunity in 3 years . Compensation expense recognized related to the vesting of restricted common stock and performance-based stock units for the nine months ended September 30, 2020 and 2019 were $5,231,000 and $4,938,000 , respectively. At September 30, 2020, the remaining compensation expense to be recognized related to the future service period of unvested outstanding restricted common stock and performance-based stock units are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Compensation Vesting Date ​ Expense 2020 ​ $ 1,781 2021 ​ ​ 5,201 2022 ​ ​ 2,729 2023 ​ ​ 367 Total ​ $ 10,078 ​ ​

Commitments and Contingencies

Commitments and Contingencies9 Months Ended
Sep. 30, 2020
Commitments and Contingencies
Commitments and Contingencies8. Commitments and Contingencies At September 30, 2020, we had commitments as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ Investment ​ 2020 ​ Commitment ​ Remaining ​ ​ Commitment ​ Funding ​ Funded ​ Commitment Real estate properties Note 2. Real Estate Investments ​ $ 28,713 (1) $ 12,487 ​ $ 17,459 ​ $ 11,254 Accrued incentives and earn-out liabilities (Note 5. Lease Incentives) ​ ​ 9,000 ​ ​ — ​ ​ — ​ ​ 9,000 Mortgage loans ( Note 2. Real Estate Investments ​ ​ 27,200 (2) ​ 2,928 ​ ​ 8,873 ​ ​ 18,327 Joint venture investments ( Note 3. Investments in Unconsolidated Joint Ventures ​ ​ 13,000 ​ ​ — ​ ​ — ​ ​ 13,000 Notes receivable ( Note 4. Notes Receivable ​ ​ 1,854 ​ ​ 1,275 ​ ​ 1,275 ​ ​ 579 Total ​ $ 79,767 ​ $ 16,690 ​ $ 27,607 ​ $ 52,160 (1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties. ​ (2) Represents $9,200 of commitments to expand and renovate the seniors housing and health care properties securing the mortgage loans and $18,000 represents contingent funding upon the borrower achieving certain coverage ratios. Also, some of our lease agreements provide purchase options allowing the lessee to purchase the properties they currently lease from us. See Note 2. Real Estate Investments We are a party from time to time to various general and professional liability claims and lawsuits asserted against the lessees or borrowers of our properties, which in our opinion are not singularly or in the aggregate material to our results of operations or financial condition. These types of claims and lawsuits may include matters involving general or professional liability, which we believe under applicable legal principles are not our responsibility as a non-possessory landlord or mortgage holder. We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims.

Major Operators

Major Operators9 Months Ended
Sep. 30, 2020
Major Operators
Major Operators9. Major Operators We have two operators that derive 10% or more of our combined rental revenue and interest income from mortgage loans. The following table sets forth information regarding our major operators as of September 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Number of ​ Percentage of ​ ​ ​ ​ ​ ​ ​ SNF ​ ALF ​ Total ​ ​ Total ​ ​ Operator ​ SNF ​ ALF ​ Beds ​ Units ​ Revenue (1) ​ ​ Assets (2) ​ ​ Prestige Healthcare ​ 24 ​ — ​ 2,922 ​ 93 ​ 19.8 % ​ 18.0 % ​ Senior Lifestyle Corporation (3) ​ — ​ 23 ​ — ​ 1,457 ​ 10.4 % ​ 10.2 % ​ Total ​ 24 ​ 23 ​ 2,922 ​ 1,550 ​ 30.2 % ​ 28.2 % ​ (1) Includes rental income from owned properties and interest income from mortgage loans as of September 30, 2020 and excludes rental income from lessee reimbursement and sold properties. ​ (2) Represents the net carrying value of the properties divided by the Total assets on the Consolidated Balance Sheets. ​ (3) See Note 2. Real Estate Investments for further information regarding Senior Lifestyle. ​ Our financial position and ability to make distributions may be adversely affected if Prestige Healthcare, Senior Lifestyle Corporation, or any of our lessees and borrowers face financial difficulties, including any bankruptcies, inability to emerge from bankruptcy, insolvency or general downturn in business of any such operator, impact upon services or occupancy levels due to COVID-19, or in the event any such operator does not renew and/or extend its relationship with us.

Earnings per Share

Earnings per Share9 Months Ended
Sep. 30, 2020
Earnings per Share
Earnings per Share10. Earnings per Share The following table sets forth the computation of basic and diluted net income per share ( in thousands, except per share amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ Net income ​ $ 12,338 ​ $ 27,280 ​ $ 78,012 ​ $ 68,241 ​ Less income allocated to non-controlling interests ​ (121) ​ (88) ​ (292) ​ (257) ​ Less income allocated to participating securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-forfeitable dividends on participating securities ​ ​ (103) ​ ​ (93) ​ ​ (294) ​ ​ (279) ​ Income allocated to participating securities ​ ​ — ​ ​ (19) ​ ​ (45) ​ ​ (19) ​ Total net income allocated to participating securities (1) ​ ​ (103) ​ ​ (112) ​ ​ (339) ​ ​ (298) ​ Net income available to common stockholders ​ ​ 12,114 ​ ​ 27,080 ​ ​ 77,381 ​ ​ 67,686 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Participating securities (2) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Net income for diluted net income per share ​ $ 12,114 ​ $ 27,080 ​ $ 77,381 ​ $ 67,686 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares for basic net income per share ​ ​ 39,061 ​ ​ 39,586 ​ ​ 39,218 ​ ​ 39,565 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ ​ — ​ ​ 4 ​ ​ — ​ ​ 4 ​ Performance-based stock units ​ ​ 51 ​ ​ 375 ​ ​ 51 ​ ​ 375 ​ Participating securities (2) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Total effect of dilutive securities ​ ​ 51 ​ ​ 379 ​ ​ 51 ​ ​ 379 ​ Shares for diluted net income per share ​ ​ 39,112 ​ ​ 39,965 ​ ​ 39,269 ​ ​ 39,944 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income per share ​ $ 0.31 ​ $ 0.68 ​ $ 1.97 ​ $ 1.71 ​ Diluted net income per share ​ $ 0.31 ​ $ 0.68 ​ $ 1.97 ​ $ 1.69 ​ (1) Under the two-class method of computing earnings per share in accordance with GAAP, income (loss) allocated to participating securities is calculated independently for each quarter and year-to-date period. Therefore, the sum of the amounts for the quarter may not agree with the amounts for the year. ​ (2) For the three and nine months ended September 30, 2020, and 2019, the participating securities have been excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive.

Fair Value Measurements

Fair Value Measurements9 Months Ended
Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements11. Fair Value Measurements In accordance with the accounting guidance regarding the fair value option for financial assets and financial liabilities, entities are permitted to choose to measure certain financial assets and liabilities at fair value, with the change in unrealized gains and losses reported in earnings. We did not elect the fair value option for any of our financial assets and financial liabilities. The carrying amount of cash and cash equivalents approximates fair value because of the short-term maturity of these instruments. We do not invest our cash in auction rate securities. The carrying value and fair value of our financial instruments as of September 30, 2020 and December 31, 2019 assuming election of fair value for our financial assets and financial liabilities were as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2020 ​ At December 31, 2019 ​ ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ ​ ​ Value ​ Value ​ Value ​ Value ​ Mortgage loans receivable ​ $ 257,671 ​ $ 299,151 (1) $ 254,099 ​ $ 312,824 (1) Bank borrowings ​ 89,900 ​ ​ 89,900 (2) ​ 93,900 ​ ​ 93,900 (2) Senior unsecured notes, net of debt issue costs ​ 574,444 ​ ​ 582,480 (3) ​ 599,488 ​ ​ 612,375 (3) (1) Our investment in mortgage loans receivable is classified as Level 3. The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments. The discount rate used to value our future cash inflows of the mortgage loans receivable at September 30, 2020 and December 31, 2019 was 10.0% and 9.0% , respectively. ​ (2) Our bank borrowings bear interest at a variable interest rate. The estimated fair value of our bank borrowings approximated their carrying values at September 30, 2020 and December 31, 2019 based upon prevailing market interest rates for similar debt arrangements. ​ (3) Our obligation under our senior unsecured notes is classified as Level 3 and thus the fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is measured based upon management’s estimates of rates currently prevailing for comparable loans available to us, and instruments of comparable maturities. At September 30, 2020, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.75% for those maturing before year 2026 and 4.00% for those maturing at or beyond year 2026. At December 31, 2019, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.70% for those maturing before year 2026 and 3.90% for those maturing at or beyond year 2026. ​

Subsequent Events

Subsequent Events9 Months Ended
Sep. 30, 2020
Subsequent Events
Subsequent Events12. Subsequent Events Subsequent to September 30, 2020 the following events occurred: Equity:

General (Policies)

General (Policies)9 Months Ended
Sep. 30, 2020
General
Basis of PresentationWe have prepared consolidated financial statements included herein without audit and in the opinion of management have included all adjustments necessary for a fair presentation of the consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to rules and regulations governing the presentation of interim financial statements. The accompanying consolidated financial statements include the accounts of our company and its wholly-owned subsidiaries.
ReclassificationsAll significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results for a full year.
Income taxesNo provision has been made for federal or state income taxes. Our company qualifies as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As such, we generally are not taxed on income that is distributed to our stockholders.
New Accounting PronouncementsNew Accounting Pronouncements New Accounting Standards Adopted by Our Company In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), Leases Topic 842, Leases ● Modify the accounting and lease classification criteria; ​ ● On a quarterly basis, on an individual lease basis, assess the collectibility of substantially all of the lease payments through maturity. If collectibility is not probable, the lease income recorded during the period would be limited to lesser of the income that would have been recognized if collection were probable, and the lease payments received; and ​ ● Exclude the lessor costs that are directly paid by the lessee to third parties on lessor’s behalf from variable payments. However, the lessor costs that are paid by the lessor and reimbursed by the lessee are required to be included in variable payments. As a result of adopting ASU 2016-02 on January 1, 2019, using the modified retrospective transition approach, we evaluated the collectibility of our lease payments and determined that the level of collectibility certainty cannot be achieved for certain operators. Accordingly, we recognized a cumulative effect adjustment to equity of $42,808,000. Additionally, we now report real estate taxes that are reimbursed by our operators as Rental income Property tax expense Consolidated Statements of Income and Comprehensive Income In April 2020, the FASB staff released guidance regarding accounting for lease concessions in response to the novel coronavirus (“COVID-19”) pandemic. The FASB staff guidance indicates that lessors could elect an accounting policy to not evaluate whether rent concessions provided in response to the COVID-19 pandemic are lease modifications. When only the timing of payments is impacted by the rent deferrals, but the amount of the consideration is substantially the same as required by the original lease agreement, the FASB listed two methods for lessors to account for the rent deferrals. We elected the first of the following two methods: ● Account for the rent deferrals as if there were no changes made to the lease agreement. Accordingly, increase the lease receivable and continue to recognize income. ​ ● Account for the rent deferrals as variable lease payments. In 2016, the FASB issued ASU No. 2016-13 , Measurement of Credit Losses on Financial Instruments We adopted ASU 2016-13 on January 1, 2020 and determined our Mortgage loans receivable Notes receivable . ​ The expected credit losses for our financial instruments that are within the scope of ASU 2016-13 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ /(Decrease) ​ ​ ​ ​ ​ ​ ​ Balance ​ in Expected ​ Balance ​ ​ ​ Balance Sheet ​ at ​ Credit Loss ​ at ​ Description ​ Location ​ 12/31/2019 ​ During the Quarter ​ 9/30/2020 ​ Expected credit losses for mortgage loans receivable ​ Mortgage loans receivable, net of loan loss reserve ​ $ 2,560 ​ $ 36 ​ $ 2,596 ​ Expected credit losses for notes receivable ​ Notes receivable, net of loan loss reserve ​ $ 181 ​ $ (37) ​ $ 144 ​ ​ We elected not to measure an allowance for expected credit losses on accrued interest receivable under the expected credit loss standard as we have a policy in place to reserve or write off accrued interest receivable in a timely manner through our quarterly review of the loan and property performance. Therefore, we elected the policy to write off accrued interest receivable by reversing interest income and/or recognizing credit loss expense. As of September 30, 2020, the total balance of accrued interest receivable of $31,248,000 was not included in the measurement of expected credit loss. For the three and nine months ended September 30, 2020 and 2019, Company did not recognize any write-off related to accrued interest receivable.

General (Tables)

General (Tables)9 Months Ended
Sep. 30, 2020
General
Schedule of expected credit losses for our financial instrumentsThe expected credit losses for our financial instruments that are within the scope of ASU 2016-13 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ /(Decrease) ​ ​ ​ ​ ​ ​ ​ Balance ​ in Expected ​ Balance ​ ​ ​ Balance Sheet ​ at ​ Credit Loss ​ at ​ Description ​ Location ​ 12/31/2019 ​ During the Quarter ​ 9/30/2020 ​ Expected credit losses for mortgage loans receivable ​ Mortgage loans receivable, net of loan loss reserve ​ $ 2,560 ​ $ 36 ​ $ 2,596 ​ Expected credit losses for notes receivable ​ Notes receivable, net of loan loss reserve ​ $ 181 ​ $ (37) ​ $ 144 ​

Real Estate Investments (Tables

Real Estate Investments (Tables)9 Months Ended
Sep. 30, 2020
Real Estate Investments
Summary of investments in owned propertiesThe following table summarizes our investments in owned properties at September 30, 2020 (dollar amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Percentage ​ Number ​ Number of ​ Investment ​ ​ Gross ​ of ​ of ​ SNF ​ ALF ​ per Type of Property ​ Investment ​ Investment ​ Properties (1) ​ Beds ​ Units ​ Bed/Unit Assisted Living ​ $ 880,307 ​ 60.8 % 107 ​ — ​ 6,164 ​ $ 142.81 ​ Skilled Nursing ​ ​ 557,097 ​ 38.4 % 51 ​ 6,277 ​ 212 ​ $ 85.85 ​ Other (2) ​ ​ 11,360 ​ 0.8 % 1 ​ 118 ​ — ​ ​ — ​ Total ​ $ 1,448,764 ​ 100.0 % 159 ​ 6,395 ​ 6,376 ​ ​ ​ ​ (1) We own properties in 27 states that are leased to 29 different operators. ​ (2) Includes three parcels of land held-for-use, and one behavioral health care hospital.
Schedule of future minimum base rents receivableFuture minimum base rents receivable under the remaining non-cancelable terms of operating leases excluding the effects of straight-line rent receivable, amortization of lease incentives and renewal options are as follows (in thousands): ​ ​ ​ ​ ​ ​ Cash ​ ​ Rent (1) 2020 ​ $ 33,758 ​ 2021 ​ 143,139 ​ 2022 ​ 131,294 ​ 2023 ​ 132,827 ​ 2024 ​ 131,766 ​ Thereafter ​ 632,675 ​ (1) Represents contractual cash rent, except for Anthem Memory Care (“Anthem”) master lease which is based on estimated cash payments. See below for more disclosure relating to Anthem.
Summary of components of our rental incomeThe following table summarizes components of our rental income for the three and nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, Rental Income ​ ​ 2020 ​ ​ 2019 ​ ​ 2020 ​ ​ 2019 ​ Base cash rental income ​ $ 32,006 (1) $ 33,754 ​ $ 98,357 (1) $ 100,687 ​ Variable cash rental income ​ ​ 3,356 (2) ​ 3,926 (2) ​ 11,793 (2) ​ 12,488 (2) Straight-line rent ​ ​ 228 ​ ​ 1,085 ​ ​ 1,701 ​ ​ 3,598 ​ Adjustment for collectability of rental income and lease incentives ​ ​ (5,472) (3) ​ — ​ ​ (23,214) (4) ​ (1,926) ​ Amortization of lease incentives ​ ​ (108) ​ ​ (100) ​ ​ (317) ​ ​ (281) ​ Total ​ $ 30,010 ​ $ 38,665 ​ $ 88,320 ​ $ 114,566 ​ (1) Decreased primarily due to reduction of rent from Preferred Care portfolio sale and Senior Lifestyle rent shortfall and abated and deferred rent partially offset by increase in rent from acquisitions and completion of development projects and contractual rent increases. ​ (2) The variable rental income for the three and nine months ended September 30, 2020, includes contingent rental income of $4 and $108 , respectively, and reimbursement of real estate taxes by our lessees of $3,352 and $11,685 , respectively. The variable rental income for the three and nine months ended September 30, 2019 includes contingent rental income of $77 and $394 , respectively, and reimbursement of real estate taxes by our lessees of $3,849 and $12,094 , respectively. ​ (3) Represents the write-off of the Genesis and another operator straight-line rent receivable balances. ​ (4) Represents the write-off of the Senior Lifestyle straight-line rent receivable and lease incentive balances and (3) above.
Summary of information about purchase options included in our lease agreementsSome of our lease agreements provide purchase options allowing the lessees to purchase the properties they currently lease from us. The following table summarizes information about purchase options included in our lease agreements (dollar amount in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ ​ Gross ​ ​ Carrying ​ Option ​ State ​ Property ​ Properties ​ ​ Investments ​ ​ Value ​ Window ​ California ​ ALF/MC ​ 2 ​ $ 38,895 ​ $ 35,836 ​ 2024-2029 ​ California ​ ALF ​ 2 ​ ​ 30,609 ​ ​ 17,088 ​ 2021-TBD (1) Florida ​ MC ​ 1 ​ ​ 14,340 ​ ​ 12,631 ​ 2028-2029 ​ Kentucky and Ohio ​ MC ​ 2 ​ ​ 30,152 ​ ​ 27,320 ​ 2028-2029 ​ Texas ​ MC ​ 2 ​ ​ 25,265 ​ ​ 23,870 ​ 2025-2027 ​ South Carolina ​ ALF/MC ​ 1 ​ ​ 11,680 ​ ​ 10,358 ​ 2028-2029 ​ Total ​ ​ ​ ​ ​ $ 150,941 ​ $ 127,103 ​ ​ ​ (1) The option window ending date will be either 24 months or 48 months after the option window commences, based on certain contingencies.
Summary of investments acquiredAcquisitions and Developments: The following table summarizes our acquisitions for the nine months ended September 30, 2020 and 2019 (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Number ​ Number ​ ​ ​ ​ Purchase ​ Transaction ​ Acquisition ​ of ​ of Year ​ Type of Property ​ Price ​ Costs (1) ​ Costs ​ Properties ​ Beds/Units 2020 ​ Skilled Nursing (2) ​ $ 13,500 ​ $ 81 ​ $ 13,581 1 ​ 140 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Assisted Living (3) ​ $ 16,719 ​ $ 176 ​ $ 16,895 ​ 1 ​ 74 ​ ​ Skilled Nursing (4) ​ ​ 19,500 ​ ​ 77 ​ ​ 19,577 ​ 1 ​ 90 ​ ​ Land (5) ​ ​ 2,732 ​ ​ 49 ​ ​ 2,781 ​ — ​ — Total ​ ​ ​ $ 38,951 ​ $ 302 ​ $ 39,253 ​ 2 ​ 164 (1) Represents cost associated with our acquisitions; however, upon adoption of ASU 2017-01, our acquisitions meet the definition of an asset acquisition resulting in capitalization of transaction costs to the properties’ basis. For our land purchases with forward development commitments, transaction costs are capitalized as part of construction in progress. Transaction costs per our Consolidated Statements of Income and Comprehensive Income represents current and prior year transaction costs due to timing and terminated transactions. ​ (2) We acquired a SNF located in Texas. ​ (3) We entered into a joint venture (“ JV”) (consolidated on our financial statements) to purchase an existing operational 74 -unit ALF/MC community. The non-controlling partner contributed $919 of equity and we contributed $15,971 in cash. Our economic interest in the real estate JV is approximately 95% . ​ (4) We acquired a newly constructed 90 -bed SNF located in Missouri. ​ (5) We acquired a parcel of land adjacent to an existing SNF in California. Additionally, we acquired a parcel of land and developed a 90 -bed SNF in Missouri. The commitment totals approximately $17,400 .
Schedule of investment in development and improvement projectsDuring he following in development and improvement projects (in thousands) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2020 ​ 2019 Type of Property ​ Developments ​ Improvements ​ Developments ​ Improvements ​ Assisted Living Communities ​ $ 4,491 ​ $ 3,941 ​ $ 10,266 ​ $ 1,826 ​ Skilled Nursing Centers ​ ​ 8,893 ​ ​ 14 ​ ​ 4,786 ​ ​ — ​ Other ​ ​ — ​ ​ — ​ ​ — ​ ​ 295 ​ Total ​ $ 13,384 ​ $ 3,955 ​ $ 15,052 ​ $ 2,121 ​
Schedule of completed projectsCompleted Developments. (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Type ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ of ​ ​ ​ ​ Total Year ​ Type of Project ​ Properties ​ Property ​ Beds/Units ​ State ​ Investment 2020 ​ Development ​ 1 ​ ALF/MC ​ 78 ​ Oregon (1) $ 18,447 ​ ​ Development ​ 1 ​ SNF ​ 90 ​ Missouri ​ ​ 13,272 Total ​ ​ ​ 2 ​ ​ ​ 168 ​ ​ ​ $ 31,719 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ Development ​ 1 ​ SNF ​ 143 ​ Kentucky ​ $ 24,496 ​ ​ Development ​ 1 ​ ILF/ALF/MC ​ 110 ​ Wisconsin ​ ​ 21,893 Total ​ ​ ​ 2 ​ ​ ​ 253 ​ ​ ​ $ 46,389 (1) Certificate of occupancy was received in March 2020, however, due to the COVID-19 pandemic, we consented to delay the opening of this community to September 2020.
Schedule of real estate investment property soldProperties Sold. (dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Number ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ of ​ ​ Sales ​ ​ Carrying ​ ​ Net ​ Year ​ State ​ Properties ​ Properties ​ Beds/Units ​ ​ Price ​ ​ Value ​ ​ Gain ​ 2020 ​ N/A ​ N/A ​ — ​ — ​ $ — ​ $ — ​ $ 108 (1) ​ ​ Arizona ​ SNF ​ 1 ​ 194 ​ ​ 12,550 ​ ​ 2,229 ​ ​ 10,292 ​ ​ ​ Colorado ​ SNF ​ 3 ​ 275 ​ ​ 15,000 ​ ​ 4,271 ​ ​ 10,364 ​ ​ ​ Iowa ​ SNF (2) 7 ​ 544 ​ ​ 14,500 ​ ​ 4,886 ​ ​ 9,029 ​ ​ ​ Kansas ​ SNF ​ 3 ​ 250 ​ ​ 9,750 ​ ​ 7,438 ​ ​ 1,993 ​ ​ ​ Texas ​ SNF ​ 7 ​ 1,148 ​ ​ 23,000 ​ ​ 10,260 ​ ​ 12,287 ​ Total 2020 (3) ​ ​ ​ ​ ​ 21 ​ 2,411 ​ $ 74,800 ​ $ 29,084 ​ $ 44,073 (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ N/A ​ N/A ​ — ​ — ​ $ — ​ $ — ​ $ 500 (4) ​ ​ Georgia ​ SNF ​ 1 ​ 148 ​ ​ 7,920 ​ ​ 1,639 ​ ​ 6,236 ​ Total 2019 ​ ​ ​ ​ ​ 1 ​ 148 ​ $ 7,920 ​ $ 1,639 ​ $ 6,736 ​ ( (1) Gain recognized from the $90 repayment of a holdback related to a property sold during the fourth quarter of 2019 and the reassessment adjustment of $18 from the holdback under the expected value model per ASC Topic 606, Contracts with Customers (“ASC 606”). ​ (2) This transaction includes a holdback of $838 which is held in an interest-bearing account with an escrow holder on behalf of the buyer for potential specific losses. Using the expected value model per ASC 606, we estimated and recorded the holdback value of $471 . During the nine months ended September 30, 2020, we received $150 of the holdback. We reassessed the holdback under the expected value model and recorded an additional gain of $115 . ​ (3) Properties sold within the Preferred Care portfolio. ​ (4) Gain recognized from the repayment of a holdback related to a portfolio of six ALFs sold during the second quarter of 2018.
Summary of investments in mortgage loans secured by first mortgagesMortgage Loans. (dollar amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Percentage ​ Number of ​ Investment ​ ​ ​ ​ Gross ​ of ​ of ​ ​ ​ ​ ​ SNF ​ per Interest Rate (1) ​ Maturity ​ Investment ​ Property ​ Investment ​ Loans (2) ​ Properties (3) ​ Beds ​ Bed/Unit 9.9% ​ 2043 ​ $ 186,865 ​ SNF ​ 71.8 % 1 ​ 15 ​ 1,941 ​ $ 96.27 9.2% ​ 2045 ​ ​ 38,853 ​ SNF ​ 14.9 % 1 ​ 4 ​ 501 ​ $ 77.55 9.4% ​ 2045 ​ 19,624 ​ SNF ​ 7.6 % 1 ​ 2 ​ 205 ​ $ 95.73 9.6% ​ 2045 ​ ​ 14,925 ​ SNF ​ 5.7 % 1 ​ 1 ​ 157 ​ $ 95.06 Total ​ ​ ​ $ 260,267 ​ ​ ​ 100.0 % 4 ​ 22 ​ 2,804 ​ $ 92.82 (1) The majority of the mortgage loans provide for annual increases in the interest rate after a certain time period increasing by 2.25% . ​ (2) Some loans contain certain guarantees, provide for certain facility fees and the majority of the mortgage loans have a 30-year term. ​ (3) The properties securing these mortgage loans are located in one state and are operated by one operator.
Schedule of mortgage loan activityThe following table summarizes our mortgage loan activity for the nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ ​ ​ Amounts ​ Origination/Funding ​ Originations and funding under mortgage loans receivable ​ $ 4,176 (1) $ 10,919 (2) Scheduled principal payments received ​ ​ (565) ​ ​ (565) ​ Mortgage loan premium amortization ​ ​ (3) ​ ​ (3) ​ Provision for loan loss reserve ​ ​ (36) ​ ​ (104) ​ Net increase in mortgage loans receivable ​ $ 3,572 ​ $ 10,247 ​ (1) During 2020, we funded an additional $2,000 under and existing mortgage loan. The incremental funding bears interest at 8.89% and escalating by 2.25% thereafter. ​ (2) During 2019, we funded an additional $7,500 under an existing mortgage loan. The incremental funding bears interest at 9.41% fixed for two years and escalating by 2.25% thereafter.

Investment in Unconsolidated _2

Investment in Unconsolidated Joint Ventures (Tables)9 Months Ended
Sep. 30, 2020
Investment in Unconsolidated Joint Ventures
Summary of the preferred equity investments​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ Type ​ Total ​ ​ Contractual ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ of ​ of ​ Preferred ​ ​ Cash ​ ​ of ​ ​ Investment ​ ​ Carrying ​ State ​ Properties ​ Investment ​ Return ​ ​ Portion ​ ​ Beds/ Units ​ ​ Commitment ​ ​ Value ​ Washington ​ UDP ​ Preferred Equity (1) 12 % ​ 7 % ​ — ​ $ — (1) $ 6,340 (1) Washington ​ UDP ​ Preferred Equity (2) 12 % ​ 8 % ​ — ​ ​ 13,000 (2) ​ - (2) Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — ​ $ 13,000 ​ $ 6,340 ​ (1) Invested $6,340 of preferred equity in an entity that will develop a 95 -unit ALF/MC in Washington. Our investment represents 15.5% of the estimated total investment. The preferred equity investment earns an initial cash rate of 7% increasing to 9% in year four until the internal rate of return (“IRR”) is 8% . After achieving an 8% IRR, the cash rate drops to 8% with an IRR ranging between 12% to 14% . ​ (2) Entered into a preferred equity agreement in an entity that will develop and own a 267 -unit ILF/ALF in Washington. Our investment represents 11.6% of the estimated total investment. Upon the satisfaction of certain conditions which are projected to be met by year-end, LTC will invest $13,000 into the entity. The preferred equity investment will earn an initial cash rate of 8% and a 12% IRR.
Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint venturesThe following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures for the nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Type ​ ​ ​ ​ ​ of ​ ​ Capital ​ ​ Income ​ ​ Cash Interest ​ Year ​ Properties ​ ​ Contribution ​ ​ Recognized ​ ​ Received ​ 2020 ​ ALF/MC/ILF (1) $ 58 (1) $ 231 (1) $ 231 (1) ​ ​ UDP ​ ​ 6,340 (2) ​ 56 (2) ​ 18 (2) Total ​ ​ ​ $ 6,398 ​ $ 287 ​ $ 249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ ALF/MC/ILF ​ $ 394 (1) $ 614 (1) $ 1,166 (1) ​ ​ ALF/ILF/MC (3) ​ — (3) ​ 955 (3) ​ 979 (3) ​ ​ ALF/MC (4) ​ — (4) ​ 404 (4) ​ 432 (4) Total ​ ​ ​ $ 394 ​ $ 1,973 ​ $ 2,577 ​ (1) Relates to our preferred equity investment in Arizona discussed above with a total preferred return of 15% . During the nine months ended September 30, 2020, the properties comprising the JV were sold. ​ (2) During the third quarter of 2020, we provided a total preferred equity investment of $6,340 to a JV for the development of a 95 -unit ALF and MC. ​ (3) We had a $2,900 mezzanine loan commitment for a 99 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance. During the third quarter of 2019, the mezzanine loan was paid off. ​ (4) We had a $3,400 mezzanine loan commitment for the development of a 127 -unit seniors housing community in Florida with a total preferred return of 15% . The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. During the first quarter of 2019, the mezzanine loan was paid off.

Notes Receivable (Tables)

Notes Receivable (Tables)9 Months Ended
Sep. 30, 2020
Notes Receivable.
Summary of mezzanine loans and other loan arrangements​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ December 31, 2019 Mezzanine loans $ 8,566 ​ $ 13,284 ​ Other loans ​ 5,875 ​ ​ 4,824 ​ Notes receivable reserve ​ (144) ​ ​ (181) ​ Total $ 14,297 ​ $ 17,927 ​
Schedule of new loan commitmentsThe following table summarizes our notes receivable activity for the nine months ended September 30, 2020 and 2019 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2020 ​ ​ 2019 ​ Advances under notes receivable $ 1,366 (1) $ 8,531 (2) Principal payments received under notes receivable ​ (4,732) ​ ​ (3,446) ​ Reclassified to lease incentives ​ (300) (3) ​ (200) (3) Notes receivable reserve ​ 36 ​ ​ (48) ​ Total $ (3,630) ​ $ 4,837 ​ (1) We originated a $1,250 note agreement, funding $1,000 with a commitment to fund $250 . The note bears interest at 5.0% . ​ (2) We originated a $6,800 mezzanine loan commitment for the development of a 204 -unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months . Additionally, we originated a $1,400 note agreement, funding $1,124 with a commitment to fund $276 . The note bears interest at 7.0% . Further, we originated a $550 note agreement, funding $400 with a commitment to fund $150 . The note bears interest at 7.5% . ​ (3) Represents interim working capital loans related to development projects which matured upon completion of the development projects and commencement of the master leases.

Lease Incentives (Tables)

Lease Incentives (Tables)9 Months Ended
Sep. 30, 2020
Lease Incentives
Summary of lease incentives by componentOur lease incentive balances at September 30, 2020 and December 31, 2019 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ December 31, 2019 Non-contingent lease incentives ​ $ 2,401 ​ $ 2,552
Summary of lease incentive activityThe following table summarizes our lease incentives activity for the nine months ended September 30, 2020 and 2019 (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ Funding ​ ​ Amortization ​ ​ Adjustment ​ ​ Funding ​ ​ Amortization ​ ​ Adjustment ​ Non-contingent lease incentives ​ $ 50 ​ $ (317) ​ $ 115 (1) $ 322 ​ $ (281) ​ $ (11,893) (2) (1) We reclassified a $300 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion. Additionally, we wrote-off $185 of lease incentive related to a master lease for which we determined it was not probable we will collect substantially all of the contractual lease obligations through maturity. See Note 2. Real Estate Investments for further discussion. ​ (2) In accordance with ASC 842 lease standard adopted on January 1, 2019, we wrote-off $12,093 of lease incentives related to leases for which we determined it is not probable we will collect substantially all of the contractual lease obligation through maturity. See Note 1. General for further discussion. Additionally, we reclassified a $200 interim working capital loan as lease incentive. See Note 4. Notes Receivable for further discussion.

Debt Obligations (Tables)

Debt Obligations (Tables)9 Months Ended
Sep. 30, 2020
Debt Obligations
Schedule of Debt ObligationsThe debt obligations by component as of September 30, 2020 and December 31, 2019 are as follows ( dollar amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2020 ​ At December 31, 2019 ​ ​ ​ Applicable ​ ​ ​ Available ​ ​ ​ Available ​ ​ ​ Interest ​ Outstanding ​ for ​ Outstanding ​ for ​ Debt Obligations ​ Rate (1) ​ Balance ​ Borrowing ​ Balance ​ Borrowing ​ Bank borrowings ​ 1.33% ​ $ 89,900 ​ $ 510,100 ​ $ 93,900 ​ $ 506,100 ​ Senior unsecured notes, net of debt issue costs ​ 4.36% ​ ​ 574,444 ​ ​ — ​ ​ 599,488 ​ ​ 21,500 ​ Total ​ 3.95% ​ $ 664,344 ​ $ 510,100 ​ $ 693,388 ​ $ 527,600 ​ (1) Represents weighted average of interest rate as of September 30, 2020.
Schedule of borrowings and repaymentsOur borrowings and repayments are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ Debt Obligations ​ ​ Borrowings ​ ​ Repayments ​ Borrowings ​ Repayments ​ Bank borrowings ​ $ 24,000 ​ $ (28,000) ​ $ 73,400 ​ $ (20,000) ​ Senior unsecured notes ​ ​ — ​ ​ (25,160) ​ ​ — ​ ​ (14,667) ​ Total ​ $ 24,000 ​ $ (53,160) ​ $ 73,400 ​ $ (34,667) ​

Equity (Tables)

Equity (Tables)9 Months Ended
Sep. 30, 2020
Equity
Schedule of consolidated VIEsAs of September 30, 2020, we have the following consolidated VIEs (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ Investment ​ ​ ​ Property ​ ​ ​ ​ Consolidated ​ ​ Non-Controlling ​ Year ​ Purpose ​ Type ​ State ​ ​ Assets ​ ​ Interests ​ 2019 ​ Owned real estate ​ ALF/MC ​ VA ​ $ 16,895 ​ $ 919 ​ 2018 ​ Owned real estate ​ ILF ​ OR ​ ​ 14,400 ​ ​ 2,858 ​ 2018 ​ Owned real estate and development ​ ALF/MC ​ OR ​ ​ 18,447 ​ ​ 1,081 ​ 2017 ​ Owned real estate and development ​ ILF/ALF/MC ​ WI ​ ​ 22,007 ​ ​ 2,305 ​ 2017 ​ Owned real estate ​ ALF/MC ​ SC ​ ​ 11,680 ​ ​ 1,241 ​ Total ​ ​ ​ ​ ​ ​ ​ $ 83,429 ​ $ 8,404 ​ ​ ​
Schedule of cash dividends declared and paidDistributions. (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ ​ ​ ​ Declared ​ Paid ​ Declared ​ Paid ​ ​ Common Stock (1) ​ $ 67,894 (2) $ 67,894 (2) $ 68,241 (3) $ 68,241 (3) ​ (1) Represents $0.19 per share per month for the nine months ended September 30, 2020 and 2019. ​ (2) Includes $586 related to the vesting of performance-based stock units. ​ (3) Includes $300 related to the vesting of performance-based stock units.
Schedule of options exercised​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Options ​ Exercise ​ Option ​ Market ​ ​ Exercised ​ Price ​ Value ​ Value (1) 2020 ​ — ​ $ — ​ $ — ​ $ — ​ 2019 ​ 5,000 ​ $ 24.65 ​ $ 123,000 ​ $ 233,000 ​ (1) (1) As of exercise date.
Schedule of restricted stock activityThe following table summarizes our restricted stock and performance-based stock units activity for the nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ ​ 2020 ​ 2019 ​ Outstanding, January 1 ​ ​ 345,633 ​ ​ 325,750 ​ Granted ​ ​ 167,375 ​ ​ 147,608 ​ Vested ​ ​ (166,051) (1) ​ (127,725) (2) Outstanding, September 30 ​ ​ 346,957 ​ ​ 345,633 ​ (1) Includes 81,574 performance-based stock units. ​ (2) Includes 48,225 performance-based stock units.
Schedule of restricted stock grantedDuring the nine months ended September 30, 2020 and 2019, we granted restricted stock and performance-based stock units under the 2015 Plan as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ No. of ​ Price per ​ ​ ​ Year ​ Shares/Units ​ Share ​ Vesting Period ​ 2020 ​ 76,464 ​ $ 48.95 ​ ratably over 3 years ​ ​ ​ 66,027 ​ $ 49.98 ​ TSR targets (1) ​ ​ ​ 9,884 ​ $ 38.45 ​ May 27, 2021 ​ ​ ​ 15,000 ​ $ 38.45 ​ ratably over 3 years ​ ​ ​ 167,375 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ 78,276 ​ $ 46.54 ​ ratably over 3 years ​ ​ ​ 60,836 ​ $ 46.54 ​ TSR targets (1) ​ ​ ​ 8,496 ​ $ 44.73 ​ May 29, 2020 ​ ​ ​ 147,608 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Vesting is based on achieving certain total shareholder return (“TSR”) targets in 4 years with acceleration opportunity in 3 years .
Schedule of restricted common stock and performance-based stock unit scheduled to vest and remaining compensation expense​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Compensation Vesting Date ​ Expense 2020 ​ $ 1,781 2021 ​ ​ 5,201 2022 ​ ​ 2,729 2023 ​ ​ 367 Total ​ $ 10,078

Commitments and Contingencies (

Commitments and Contingencies (Tables)9 Months Ended
Sep. 30, 2020
Commitments and Contingencies
Schedule of commitmentsAt September 30, 2020, we had commitments as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ Investment ​ 2020 ​ Commitment ​ Remaining ​ ​ Commitment ​ Funding ​ Funded ​ Commitment Real estate properties Note 2. Real Estate Investments ​ $ 28,713 (1) $ 12,487 ​ $ 17,459 ​ $ 11,254 Accrued incentives and earn-out liabilities (Note 5. Lease Incentives) ​ ​ 9,000 ​ ​ — ​ ​ — ​ ​ 9,000 Mortgage loans ( Note 2. Real Estate Investments ​ ​ 27,200 (2) ​ 2,928 ​ ​ 8,873 ​ ​ 18,327 Joint venture investments ( Note 3. Investments in Unconsolidated Joint Ventures ​ ​ 13,000 ​ ​ — ​ ​ — ​ ​ 13,000 Notes receivable ( Note 4. Notes Receivable ​ ​ 1,854 ​ ​ 1,275 ​ ​ 1,275 ​ ​ 579 Total ​ $ 79,767 ​ $ 16,690 ​ $ 27,607 ​ $ 52,160 (1) Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties. ​ (2) Represents $9,200 of commitments to expand and renovate the seniors housing and health care properties securing the mortgage loans and $18,000 represents contingent funding upon the borrower achieving certain coverage ratios.

Major Operators (Tables)

Major Operators (Tables)9 Months Ended
Sep. 30, 2020
Major Operators
Schedule of concentration of risk by major operators​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Number of ​ Percentage of ​ ​ ​ ​ ​ ​ ​ SNF ​ ALF ​ Total ​ ​ Total ​ ​ Operator ​ SNF ​ ALF ​ Beds ​ Units ​ Revenue (1) ​ ​ Assets (2) ​ ​ Prestige Healthcare ​ 24 ​ — ​ 2,922 ​ 93 ​ 19.8 % ​ 18.0 % ​ Senior Lifestyle Corporation (3) ​ — ​ 23 ​ — ​ 1,457 ​ 10.4 % ​ 10.2 % ​ Total ​ 24 ​ 23 ​ 2,922 ​ 1,550 ​ 30.2 % ​ 28.2 % ​ (1) Includes rental income from owned properties and interest income from mortgage loans as of September 30, 2020 and excludes rental income from lessee reimbursement and sold properties. ​ (2) Represents the net carrying value of the properties divided by the Total assets on the Consolidated Balance Sheets. ​ (3) See Note 2. Real Estate Investments for further information regarding Senior Lifestyle. ​

Earnings per Share (Tables)

Earnings per Share (Tables)9 Months Ended
Sep. 30, 2020
Earnings per Share
Schedule of basic and diluted net income per shareThe following table sets forth the computation of basic and diluted net income per share ( in thousands, except per share amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ ​ 2020 ​ 2019 ​ 2020 ​ 2019 ​ Net income ​ $ 12,338 ​ $ 27,280 ​ $ 78,012 ​ $ 68,241 ​ Less income allocated to non-controlling interests ​ (121) ​ (88) ​ (292) ​ (257) ​ Less income allocated to participating securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-forfeitable dividends on participating securities ​ ​ (103) ​ ​ (93) ​ ​ (294) ​ ​ (279) ​ Income allocated to participating securities ​ ​ — ​ ​ (19) ​ ​ (45) ​ ​ (19) ​ Total net income allocated to participating securities (1) ​ ​ (103) ​ ​ (112) ​ ​ (339) ​ ​ (298) ​ Net income available to common stockholders ​ ​ 12,114 ​ ​ 27,080 ​ ​ 77,381 ​ ​ 67,686 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Participating securities (2) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Net income for diluted net income per share ​ $ 12,114 ​ $ 27,080 ​ $ 77,381 ​ $ 67,686 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares for basic net income per share ​ ​ 39,061 ​ ​ 39,586 ​ ​ 39,218 ​ ​ 39,565 ​ Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ ​ — ​ ​ 4 ​ ​ — ​ ​ 4 ​ Performance-based stock units ​ ​ 51 ​ ​ 375 ​ ​ 51 ​ ​ 375 ​ Participating securities (2) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Total effect of dilutive securities ​ ​ 51 ​ ​ 379 ​ ​ 51 ​ ​ 379 ​ Shares for diluted net income per share ​ ​ 39,112 ​ ​ 39,965 ​ ​ 39,269 ​ ​ 39,944 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income per share ​ $ 0.31 ​ $ 0.68 ​ $ 1.97 ​ $ 1.71 ​ Diluted net income per share ​ $ 0.31 ​ $ 0.68 ​ $ 1.97 ​ $ 1.69 ​ (1) Under the two-class method of computing earnings per share in accordance with GAAP, income (loss) allocated to participating securities is calculated independently for each quarter and year-to-date period. Therefore, the sum of the amounts for the quarter may not agree with the amounts for the year. ​ (2) For the three and nine months ended September 30, 2020, and 2019, the participating securities have been excluded from the computation of diluted net income per share as such inclusion would be anti-dilutive.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)9 Months Ended
Sep. 30, 2020
Fair Value Measurements
Schedule of carrying value and fair value of the entity's financial instruments​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2020 ​ At December 31, 2019 ​ ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ ​ ​ Value ​ Value ​ Value ​ Value ​ Mortgage loans receivable ​ $ 257,671 ​ $ 299,151 (1) $ 254,099 ​ $ 312,824 (1) Bank borrowings ​ 89,900 ​ ​ 89,900 (2) ​ 93,900 ​ ​ 93,900 (2) Senior unsecured notes, net of debt issue costs ​ 574,444 ​ ​ 582,480 (3) ​ 599,488 ​ ​ 612,375 (3) (1) Our investment in mortgage loans receivable is classified as Level 3. The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments. The discount rate used to value our future cash inflows of the mortgage loans receivable at September 30, 2020 and December 31, 2019 was 10.0% and 9.0% , respectively. ​ (2) Our bank borrowings bear interest at a variable interest rate. The estimated fair value of our bank borrowings approximated their carrying values at September 30, 2020 and December 31, 2019 based upon prevailing market interest rates for similar debt arrangements. ​ (3) Our obligation under our senior unsecured notes is classified as Level 3 and thus the fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is measured based upon management’s estimates of rates currently prevailing for comparable loans available to us, and instruments of comparable maturities. At September 30, 2020, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.75% for those maturing before year 2026 and 4.00% for those maturing at or beyond year 2026. At December 31, 2019, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.70% for those maturing before year 2026 and 3.90% for those maturing at or beyond year 2026.

General (Details)

General (Details)9 Months Ended
Sep. 30, 2020USD ($)segmentSep. 30, 2020USD ($)Jun. 30, 2020USD ($)Mar. 31, 2020USD ($)Dec. 31, 2019USD ($)Sep. 30, 2019USD ($)Jun. 30, 2019USD ($)Mar. 31, 2019USD ($)Jan. 01, 2019USD ($)Dec. 31, 2018USD ($)
Number of operating segments | segment1
Provision for federal or state income taxes $ 0
Cumulative effect of the adoption of the ASC 842 $ 778,821,000 $ 787,305,000 $ 806,055,000 $ 785,426,000 $ 793,894,000 $ 787,610,000 $ 788,153,000 $ 832,971,000
Interest receivable31,248,000 26,586,000
Mortgage Loans Receivable
Expected credit losses for financial instruments
Balance at the Beginning of the Period2,560,000
Increase/(Decrease) in Expected Credit Loss2,596,000 2,596,000 2,560,000
Balance at the End of the Period2,596,000
Notes Receivable
Expected credit losses for financial instruments
Balance at the Beginning of the Period181,000
Increase/(Decrease) in Expected Credit Loss144,000 $ 144,000 181,000
Balance at the End of the Period144,000
Cumulative Effect of Adoption
Cumulative effect of the adoption of the ASC 842 $ (42,808,000)
ASU 2016-02 | Cumulative Effect of Adoption
Cumulative effect of the adoption of the ASC 842 $ 42,808,000
Restatement Adjustment | ASU 2016-13 | Mortgage Loans Receivable
Expected credit losses for financial instruments
Balance at the Beginning of the Period36,000
Increase/(Decrease) in Expected Credit Loss36,000 36,000
Restatement Adjustment | ASU 2016-13 | Notes Receivable
Expected credit losses for financial instruments
Balance at the Beginning of the Period(37,000)
Increase/(Decrease) in Expected Credit Loss $ (37,000) $ (37,000)

Real Estate Investments - Owned

Real Estate Investments - Owned Properties (Details) $ in Thousands9 Months Ended
Sep. 30, 2020USD ($)itempropertystate$ / itemSep. 30, 2019item
Real Estate [Line Items]
Number of beds/units under development204
Real Estate Investment
Real Estate [Line Items]
Gross Investment | $ $ 1,448,764
Percentage of Investment100.00%
Number of properties | property159
Number of states | state27
Number of operators29
Operating leases
Number of ways to compute annual rent increases4
Real Estate Investment | Minimum
Operating leases
Initial lease term10 years
Specified annual increase over the prior year's rent (as a percent)2.00%
Real Estate Investment | Maximum
Operating leases
Initial lease term15 years
Specified annual increase over the prior year's rent (as a percent)2.50%
Real Estate Investment | SNF Beds
Real Estate [Line Items]
Number of beds/units6,395
Real Estate Investment | ALF Units
Real Estate [Line Items]
Number of beds/units6,376
ALF | Real Estate Investment
Real Estate [Line Items]
Gross Investment | $ $ 880,307
Percentage of Investment60.80%
Number of properties | property107
Investment per Bed/Unit | $ / item142.81
ALF | Real Estate Investment | ALF Units
Real Estate [Line Items]
Number of beds/units6,164
SNF | Real Estate Investment
Real Estate [Line Items]
Gross Investment | $ $ 557,097
Percentage of Investment38.40%
Number of properties | property51
Investment per Bed/Unit | $ / item85.85
SNF | Real Estate Investment | SNF Beds
Real Estate [Line Items]
Number of beds/units6,277
SNF | Real Estate Investment | ALF Units
Real Estate [Line Items]
Number of beds/units212
Other | Real Estate Investment
Real Estate [Line Items]
Gross Investment | $ $ 11,360
Percentage of Investment0.80%
Number of properties | property1
Number of parcels of land3
Other | Real Estate Investment | SNF Beds
Real Estate [Line Items]
Number of beds/units118
Hospital | Real Estate Investment
Real Estate [Line Items]
Number of properties | property1

Real Estate Investments - Base

Real Estate Investments - Base Rents (Details) $ in ThousandsSep. 30, 2020USD ($)
Future minimum base rents receivable
2020 $ 33,758
2021143,139
2022131,294
2023132,827
2024131,766
Thereafter $ 632,675

Real Estate Investments - Opera

Real Estate Investments - Operator changes (Details)Oct. 04, 2019USD ($)Oct. 31, 2020USD ($)Sep. 30, 2020USD ($)itempropertyJul. 31, 2020USD ($)Sep. 30, 2020USD ($)itempropertyleaseJun. 30, 2020USD ($)Mar. 31, 2020USD ($)propertyitemSep. 30, 2019USD ($)Sep. 30, 2020USD ($)itempropertyMar. 31, 2020USD ($)Sep. 30, 2020USD ($)propertyitemSep. 30, 2019USD ($)Dec. 31, 2020USD ($)Dec. 31, 2017itemDec. 31, 2019USD ($)
Other disclosures
Rent deferral $ 566,000 $ 1,176,000 $ 1,176,000 $ 1,176,000 $ 1,176,000
Impairment charges941,000
Rental income30,010,000 $ 38,665,000 88,320,000 $ 114,566,000
Proceeds from sale of real estate, net72,141,000 8,068,000
Gain on sale of real estate, net30,000 $ 6,236,000 $ 44,073,000 $ 6,736,000
Net book value $ 26,856,000
Anthem Memory Care
Other disclosures
Number of properties in default | property11
Anthem Memory Care | Forecast
Other disclosures
Minimum cash rent received $ 9,900,000
Preferred Care, Inc.
Other disclosures
Number of properties under two master leases | item24
Number of master leases | item2
Number of properties sold | property21
Number of beds or units in property sold | item2,411
Proceeds from sale of real estate, net $ 72,100,000 $ 77,900,000
Gain on sale of real estate, net44,073,000 44,000,000
Net book value $ 29,100,000 $ 29,100,000 $ 35,600,000
Senior Lifestyle Corporation
Other disclosures
Number of properties in default | property23
Contractual rent1,561,000 9,121,000
Remaining outstanding accounts receivable2,670,000 2,670,000 2,670,000 $ 2,670,000
Rent receivable line of credit and security deposit as collateral3,608,000 3,608,000 3,608,000 3,608,000
Write-off of rent receivable and lease incentives $ 17,742,000
Rental income $ 1,341,000 5,325,000
Veritas Senior Living, LLC
Other disclosures
Contractual rent374,000 1,299,000
Write-off of rent receivable and lease incentives $ 1,156,000
Number of master lease into combined one | lease2
Abated cash rent $ 570,000 $ 80,000 650,000
Rent deferral $ 186,000 186,000 $ 186,000 $ 186,000
Impairment charges941,000
Rental income542,000
Genesis healthcare
Other disclosures
Write-off of rent receivable and lease incentives $ 4,316,000
Brookdale Senior Living
Other disclosures
Number of leases consolidated | lease4
Number of renewal option | item3 3 3 3
Renewal term option one4 years
Renewal term option two5 years
Renewal term option three10 years
Senior Care Centers
Other disclosures
Court ordered payment amount $ 1,596,000
Real Estate Investment
Other disclosures
Number of properties | property159 159 159 159
Real Estate Investment | Maximum
Other disclosures
Initial lease term15 years15 years15 years15 years

Real Estate Investments - Lease

Real Estate Investments - Lease (Details)1 Months Ended3 Months Ended4 Months Ended6 Months Ended9 Months Ended
Oct. 31, 2020USD ($)Sep. 30, 2020USD ($)propertySep. 30, 2019USD ($)Oct. 31, 2020USD ($)Sep. 30, 2020USD ($)propertySep. 30, 2020USD ($)propertySep. 30, 2019USD ($)Dec. 31, 2019USD ($)
Real estate investments
Carrying value $ 1,108,931,000 $ 1,108,931,000 $ 1,108,931,000 $ 1,136,816,000
Income and Expenses, Lessor [Abstract]
Base cash rental income32,006,000 $ 33,754,000 98,357,000 $ 100,687,000
Variable cash rental income3,356,000 3,926,000 11,793,000 12,488,000
Straight-Line Rent228,000 1,085,000 1,701,000 3,598,000
Change in straight-line rent receivable and lease incentives due to collectibility(5,472,000)(23,214,000)(1,926,000)
Amortization of Lease Incentives(108,000)(100,000)(317,000)(281,000)
Total Rental Income30,010,000 38,665,000 88,320,000 114,566,000
Reimbursement Of Real Estate Tax Expense3,352,000 3,849,000 11,685,000 12,094,000
Contingent rental income4,000 $ 77,000 108,000 394,000
Non-contingent lease incentives, Write off185,000 $ (12,093,000)
Rent deferral $ 566,000 $ 1,176,000 $ 566,000 $ 1,176,000 $ 1,176,000
Rent deferral, as a percent of contractual rent1.50%1.50%1.50%
Deferred rent received553,000
Remaining balance of deferred rent1,189,000 $ 1,189,000
Purchase Option in Lease Arrangements
Real estate investments
Gross Investment $ 150,941,000 $ 150,941,000 $ 150,941,000
Carrying value $ 127,103,000 127,103,000 $ 127,103,000
Senior Lifestyle Corporation
Income and Expenses, Lessor [Abstract]
Total Rental Income $ 1,341,000 $ 5,325,000
ALF | Purchase Option in Lease Arrangements | California
Real estate investments
Number of properties | property2 2 2
Gross Investment $ 30,609,000 $ 30,609,000 $ 30,609,000
Carrying value $ 17,088,000 $ 17,088,000 $ 17,088,000
ALF | Purchase Option in Lease Arrangements | California | Minimum
Real estate investments
Purchase option ending period24 months
ALF | Purchase Option in Lease Arrangements | California | Maximum
Real estate investments
Purchase option ending period48 months
MC | Purchase Option in Lease Arrangements | Florida
Real estate investments
Number of properties | property1 1 1
Gross Investment $ 14,340,000 $ 14,340,000 $ 14,340,000
Carrying value $ 12,631,000 $ 12,631,000 $ 12,631,000
MC | Purchase Option in Lease Arrangements | Ohio and Kentucky
Real estate investments
Number of properties | property2 2 2
Gross Investment $ 30,152,000 $ 30,152,000 $ 30,152,000
Carrying value $ 27,320,000 $ 27,320,000 $ 27,320,000
MC | Purchase Option in Lease Arrangements | Texas
Real estate investments
Number of properties | property2 2 2
Gross Investment $ 25,265,000 $ 25,265,000 $ 25,265,000
Carrying value $ 23,870,000 $ 23,870,000 $ 23,870,000
ALF and MC | Purchase Option in Lease Arrangements | California
Real estate investments
Number of properties | property2 2 2
Gross Investment $ 38,895,000 $ 38,895,000 $ 38,895,000
Carrying value $ 35,836,000 $ 35,836,000 $ 35,836,000
ALF and MC | Purchase Option in Lease Arrangements | South Carolina
Real estate investments
Number of properties | property1 1 1
Gross Investment $ 11,680,000 $ 11,680,000 $ 11,680,000
Carrying value $ 10,358,000 $ 10,358,000 $ 10,358,000
Real Estate Investment
Real estate investments
Number of properties | property159 159 159
Gross Investment $ 1,448,764,000 $ 1,448,764,000 $ 1,448,764,000
Real Estate Investment | ALF
Real estate investments
Number of properties | property107 107 107
Gross Investment $ 880,307,000 $ 880,307,000 $ 880,307,000

Real Estate Investments - Acqui

Real Estate Investments - Acquisitions and Developments (Details)9 Months Ended
Sep. 30, 2020USD ($)itemSep. 30, 2019USD ($)itemDec. 31, 2019USD ($)
Real estate investments
Purchase Price $ 38,951,000
Transaction Costs302,000
Total Acquisition Costs $ 39,253,000
Number of properties acquired2
Number of beds/units acquired | item164
Number of units under development | item204
Investment Commitment $ 79,767,000
Non-controlling interests8,404,000 $ 8,483,000
SNF | Missouri
Real estate investments
Number of beds/units acquired | item90
ALF and MC | 74-Unit ALF/MC
Real estate investments
Investment Commitment $ 15,971,000
Non-controlling interests $ 919,000
Land | Missouri
Real estate investments
Number of beds/units acquired | item90
Properties under Development | Missouri
Real estate investments
Investment Commitment17,400
2020 Acquisitions | SNF
Real estate investments
Purchase Price13,500,000
Transaction Costs81,000
Total Acquisition Costs $ 13,581,000
Number of properties acquired1
Number of beds/units acquired | item140
2019 Acquisitions | SNF
Real estate investments
Purchase Price $ 19,500,000
Transaction Costs77,000
Total Acquisition Costs $ 19,577,000
Number of properties acquired1
Number of beds/units acquired | item90
2019 Acquisitions | ALF
Real estate investments
Purchase Price $ 16,719,000
Transaction Costs176,000
Total Acquisition Costs $ 16,895,000
Number of properties acquired1
Number of beds/units acquired | item74
2019 Acquisitions | ALF and MC | 74-Unit ALF/MC
Real estate investments
Number of units under development | item74
Economic interest in joint venture95.00%
2019 Acquisitions | Land
Real estate investments
Purchase Price $ 2,732,000
Transaction Costs49,000
Total Acquisition Costs $ 2,781,000

Real Estate Investments - Types

Real Estate Investments - Types of property Development and Improvement (Details) - USD ($)9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Real estate investments
Invested in projects $ 16,690,000
Developments | Development and Improvement Commitments
Real estate investments
Invested in projects13,384,000 $ 15,052,000
Improvements | Development and Improvement Commitments
Real estate investments
Invested in projects3,955,000 2,121,000
ALF | Developments | Development and Improvement Commitments
Real estate investments
Invested in projects4,491,000 10,266,000
ALF | Improvements | Development and Improvement Commitments
Real estate investments
Invested in projects3,941,000 1,826,000
SNF | Developments | Development and Improvement Commitments
Real estate investments
Invested in projects8,893,000 4,786,000
SNF | Improvements | Development and Improvement Commitments
Real estate investments
Invested in projects $ 14,000
Other | Improvements | Development and Improvement Commitments
Real estate investments
Invested in projects $ 295,000

Real Estate Investments - Devel

Real Estate Investments - Development and Improvement Projects (Details) - Real Estate Development Commitments - Real Estate Investment Completed Projects $ in Thousands9 Months Ended
Sep. 30, 2020USD ($)itempropertySep. 30, 2019USD ($)itemproperty
Completed development and improvement projects
Number of Properties | property2 2
Number of Beds/Units | item168 253
Total Investment | $ $ 31,719 $ 46,389
ALF and MC | Developments | Oregon
Completed development and improvement projects
Number of Properties | property1
Number of Beds/Units | item78
Total Investment | $ $ 18,447
SNF | Developments | Missouri
Completed development and improvement projects
Number of Properties | property1
Number of Beds/Units | item90
Total Investment | $ $ 13,272
SNF | Developments | Kentucky
Completed development and improvement projects
Number of Properties | property1
Number of Beds/Units | item143
Total Investment | $ $ 24,496
ILF/ALF/MC | Developments | Wisconsin
Completed development and improvement projects
Number of Properties | property1
Number of Beds/Units | item110
Total Investment | $ $ 21,893

Real Estate Investments - Prope

Real Estate Investments - Property Sales (Details)3 Months Ended6 Months Ended9 Months Ended
Sep. 30, 2020USD ($)Mar. 31, 2020USD ($)propertyitemSep. 30, 2019USD ($)Jun. 30, 2018propertyMar. 31, 2020USD ($)Sep. 30, 2020USD ($)itempropertySep. 30, 2019USD ($)itempropertyDec. 31, 2019USD ($)
Disposals and other
Carrying value $ 1,108,931,000 $ 1,108,931,000 $ 1,136,816,000
Net Gain30,000 $ 6,236,000 44,073,000 $ 6,736,000
Impairment charges941,000 $ 941,000
ALF
Disposals and other
Number of properties sold | property6
Properties sold
Disposals and other
Number of properties sold | property21 1
Number of beds or units in property sold | item2,411 148
Sales price $ 74,800,000 $ 7,920,000
Carrying value29,084,000 1,639,000 29,084,000 1,639,000
Net Gain44,073,000 6,736,000
Net Gain108,000 $ 500,000
Holdback repayment90,000
Reassessment adjustment $ 18,000
Properties sold | SNF | Arizona
Disposals and other
Number of properties sold | property1
Number of beds or units in property sold | item194
Sales price $ 12,550,000
Carrying value2,229,000 2,229,000
Net Gain $ 10,292,000
Properties sold | SNF | Colorado
Disposals and other
Number of properties sold | property3
Number of beds or units in property sold | item275
Sales price $ 15,000,000
Carrying value4,271,000 4,271,000
Net Gain $ 10,364,000
Properties sold | SNF | Kansas
Disposals and other
Number of properties sold | property3
Number of beds or units in property sold | item250
Sales price $ 9,750,000
Carrying value7,438,000 7,438,000
Net Gain $ 1,993,000
Properties sold | SNF | Iowa
Disposals and other
Number of properties sold | property7
Number of beds or units in property sold | item544
Sales price $ 14,500,000
Carrying value4,886,000 4,886,000
Net Gain9,029,000
Holdback amount150,000 $ 838,000 $ 838,000 150,000
Realizable holdback amount $ 471,000 $ 115,000
Properties sold | SNF | Texas
Disposals and other
Number of properties sold | property7
Number of beds or units in property sold | item1,148
Sales price $ 23,000,000
Carrying value $ 10,260,000 10,260,000
Net Gain $ 12,287,000
Properties sold | SNF | Georgia
Disposals and other
Number of properties sold | property1
Number of beds or units in property sold | item148
Sales price $ 7,920,000
Carrying value $ 1,639,000 1,639,000
Net Gain $ 6,236,000
Preferred Care, Inc.
Disposals and other
Number of properties sold | property21
Number of beds or units in property sold | item2,411
Net Gain $ 44,073,000 $ 44,000,000

Real Estate Investments - Mortg

Real Estate Investments - Mortgage Loan (Details) $ in Thousands9 Months Ended
Sep. 30, 2020USD ($)loanpropertyitemstate$ / item
Mortgage Loans
Real Estate [Line Items]
Gross Investment | $ $ 260,267
Percentage of Investment100.00%
Number of Loans | loan4
Number of properties | property22
Investment per Bed/Unit | $ / item92.82
Loan Term30 years
Number of states | state1
Number of operators1
Mortgage loans with 9.90% Interest Maturing 2043 | SNF | Mortgage Loans
Real Estate [Line Items]
Interest rate (as a percent)9.90%
Gross Investment | $ $ 186,865
Percentage of Investment71.80%
Number of Loans | loan1
Number of properties | property15
Investment per Bed/Unit | $ / item96.27
Mortgage loans with 9.20% Interest Maturing 2045 | SNF | Mortgage Loans
Real Estate [Line Items]
Interest rate (as a percent)9.20%
Gross Investment | $ $ 38,853
Percentage of Investment14.90%
Number of Loans | loan1
Number of properties | property4
Investment per Bed/Unit | $ / item77.55
Mortgage loans with 9.40% Interest Maturing 2045 | SNF | Mortgage Loans
Real Estate [Line Items]
Interest rate (as a percent)9.40%
Gross Investment | $ $ 19,624
Percentage of Investment7.60%
Number of Loans | loan1
Number of properties | property2
Investment per Bed/Unit | $ / item95.73
Mortgage loans with 9.6% Interest Maturing 2045 | SNF
Real Estate [Line Items]
Interest rate (as a percent)9.60%
Mortgage loans with 9.6% Interest Maturing 2045 | SNF | Mortgage Loans
Real Estate [Line Items]
Gross Investment | $ $ 14,925
Percentage of Investment5.70%
Number of Loans | loan1
Number of properties | property1
Investment per Bed/Unit | $ / item95.06
SNF Beds | Mortgage Loans
Real Estate [Line Items]
Number of beds/units2,804
SNF Beds | Mortgage loans with 9.90% Interest Maturing 2043 | SNF | Mortgage Loans
Real Estate [Line Items]
Number of beds/units1,941
SNF Beds | Mortgage loans with 9.20% Interest Maturing 2045 | SNF | Mortgage Loans
Real Estate [Line Items]
Number of beds/units501
SNF Beds | Mortgage loans with 9.40% Interest Maturing 2045 | SNF | Mortgage Loans
Real Estate [Line Items]
Number of beds/units205
SNF Beds | Mortgage loans with 9.6% Interest Maturing 2045 | SNF | Mortgage Loans
Real Estate [Line Items]
Number of beds/units157

Real Estate Investments - Mor_2

Real Estate Investments - Mortgage Loans Activity (Details) - USD ($)9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Mortgage Loans
Originations and fundings under mortgage loans receivable $ 4,176,000 $ 10,919,000
Scheduled principal payments received(565,000)(565,000)
Mortgage loan premium amortization(3,000)(3,000)
Provision for loan loss reserve(36,000)(104,000)
Net increase in mortgage loans receivable $ 3,572,000 10,247,000
Mortgage Loans
Mortgage Loans
Loan Term30 years
Specified basis points for annual increase in interest rate (as a percent)2.25%
Mortgages With 8.89 Percent Interest With Escalation [Member] | Mortgage Loans
Mortgage Loans
Additions to mortgage loans $ 2,000
Interest rate (as a percent)8.89%
Specified basis points for annual increase in interest rate (as a percent)2.25%
Mortgages with 9.41% Interest, fixed for five years, and escalating by 2.25% thereafter | Mortgage Loans
Mortgage Loans
Additions to mortgage loans $ 7,500
Interest rate (as a percent)9.41%
Loan Term2 years
Specified basis points for annual increase in interest rate (as a percent)2.25%

Investment in Unconsolidated _3

Investment in Unconsolidated Joint Ventures - Investment (Details)3 Months Ended9 Months Ended12 Months Ended
Sep. 30, 2020USD ($)itempropertyJun. 30, 2020USD ($)Sep. 30, 2020USD ($)itempropertySep. 30, 2019USD ($)itemDec. 31, 2019USD ($)propertyMar. 31, 2021USD ($)
Investment in Unconsolidated Joint Ventures
Number of joint ventures committed | property2
Carrying Value $ 7,069,000 $ 7,069,000 $ 19,003,000
Income Recognized287,000 $ 1,973,000
Cash Interest Received249,000 2,577,000
Liquidation proceeds17,758,000 6,601,000
Joint Venture
Investment in Unconsolidated Joint Ventures
Liquidation proceeds $ 17,758,000 $ 17,758,000
Additional proceeds $ 729,000
Amount of gains (losses) on liquidation $ (620,000,000)
Joint Venture | Preferred Equity Investment | Arizona
Investment in Unconsolidated Joint Ventures
Number of properties owned by joint venture | property4 4
Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Capital Contributions $ 6,398,000 394,000
Income Recognized287,000 1,973,000
Cash Interest Received249,000 2,577,000
Preferred Equity Investment | Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Investment commitment13,000,000
Carrying Value $ 6,340,000 6,340,000
Combination ILF, ALF and MC community | Preferred Equity Investment | Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Number of properties owned by joint venture for sale | property4
Impairment loss from investments in unconsolidated joint ventures $ 5,500,000
Combination ALF, MC, ILF | Preferred Equity Investment | Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Capital Contributions58,000 394,000
Income Recognized231,000 614,000
Cash Interest Received $ 231,000 $ 1,166,000
Combination ALF, MC, ILF | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Arizona
Investment in Unconsolidated Joint Ventures
Preferred return percentage15.00%
UDP | Preferred Equity Investment | Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Number of beds/units95 95
Capital Contributions $ 6,340,000 $ 6,340,000
Income Recognized56,000
Cash Interest Received $ 18,000
Combination ALF, ILF, MC | Mezzanine Loans | Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Preferred return percentage15.00%
Number of beds/units | item99
Investment commitment $ 2,900,000
Income Recognized955,000
Cash Interest Received $ 979,000
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington
Investment in Unconsolidated Joint Ventures
Preferred return percentage12.00%
Contractual cash portion7.00%
Number of beds/units | item95 95
Carrying Value $ 6,340,000 $ 6,340,000
Percentage of Investment15.50%15.50%
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | Internal Rate of Return is Until Eight Percent
Investment in Unconsolidated Joint Ventures
Percentage of cash return8.00%
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | Internal Rate of Return is Until Eight Percent | Minimum
Investment in Unconsolidated Joint Ventures
Percentage of cash return7.00%
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | Internal Rate of Return is Until Eight Percent | Maximum
Investment in Unconsolidated Joint Ventures
Percentage of cash return9.00%
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | The Internal Rate of Return is Between Twelve and Fourteen Percent | Minimum
Investment in Unconsolidated Joint Ventures
Percentage of cash return12.00%
Combination ALF/MC | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington | The Internal Rate of Return is Between Twelve and Fourteen Percent | Maximum
Investment in Unconsolidated Joint Ventures
Percentage of cash return14.00%
Combination ALF/MC | Mezzanine Loans | Joint Venture | Not primary beneficiary
Investment in Unconsolidated Joint Ventures
Preferred return percentage15.00%
Number of beds/units | item127
Investment commitment $ 3,400,000
Income Recognized404,000
Cash Interest Received $ 432,000
Combination ILF/ALF | Preferred Equity Investment | Joint Venture | Not primary beneficiary | Washington
Investment in Unconsolidated Joint Ventures
Preferred return percentage12.00%
Contractual cash portion8.00%
Number of beds/units | item267 267
Investment commitment $ 13,000,000
Percentage of Investment11.60%11.60%
Percentage of cash return8.00%
Percentage of internal rate of return12.00%
Amount of joint venture investment $ 13,000,000 $ 13,000,000

Notes Receivable - Components (

Notes Receivable - Components (Details) - USD ($) $ in ThousandsSep. 30, 2020Dec. 31, 2019Sep. 30, 2019
Notes receivable activities
Mezzanine loan $ 6,800
Notes receivable reserve $ (144) $ (181)
Total14,297 17,927
Mezzanine loan with 12.0% Interest
Notes receivable activities
Mezzanine loan8,566 13,284
Other loans
Notes receivable activities
Mezzanine loan $ 5,875 $ 4,824

Notes Receivable - Notes Receiv

Notes Receivable - Notes Receivable Activity (Details) - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Notes receivable activities
Advances under notes receivable $ 1,366 $ 8,531
Principal payments received under notes receivable(4,732)(3,446)
Reclassified to lease incentives(300)(200)
Notes receivable reserve36 (48)
Total $ (3,630) $ 4,837

Notes Receivable - New Loan Com

Notes Receivable - New Loan Commitment (Details) $ in Thousands9 Months Ended
Sep. 30, 2020USD ($)Sep. 30, 2019USD ($)itemDec. 31, 2019USD ($)
Notes receivable activities
Notes receivable, gross $ 6,800
Number of beds/units under development | item204
Mezzanine loan with 12.0% Interest
Notes receivable activities
Notes receivable, gross $ 8,566 $ 13,284
$1,250 note agreement
Notes receivable activities
Notes receivable, gross $ 1,000
Interest rate (as a percent)5.00%
Loan principal amount $ 1,250
Committed to fund $ 250
204-unit ILF/ALF/MC
Notes receivable activities
Loan Term5 years
Interest rate (as a percent)12.00%
204-unit ILF/ALF/MC | Mezzanine loan with 12.0% Interest
Notes receivable activities
Loan Term46 months
204-unit ILF/ALF/MC | $1400 note agreement
Notes receivable activities
Notes receivable, gross $ 1,124
Interest rate (as a percent)7.00%
Loan principal amount $ 1,400
Committed to fund276
204-unit ILF/ALF/MC | $550 Note Agreement
Notes receivable activities
Notes receivable, gross $ 400
Interest rate (as a percent)7.50%
Loan principal amount $ 550
Committed to fund $ 150

Lease Incentives (Details)

Lease Incentives (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Lease Incentives
Non-contingent lease incentives $ 2,401 $ 2,401 $ 2,552
Non-contingent lease incentives, funding50 $ 322
Non-contingent lease incentives, Amortization $ (108) $ (100)(317)(281)
Non-contingent lease incentives, Adjustment115 (11,893)
Reclassified to lease incentives300 200
Non-contingent lease incentives, Write off $ 185 $ (12,093)

Debt Obligations - Bank Borrowi

Debt Obligations - Bank Borrowings (Details) - Bank Borrowings - USD ($)9 Months Ended
Sep. 30, 2020Dec. 31, 2018
Debt Obligations
Maximum available under facility $ 1,000,000,000 $ 600,000,000
Additional extension period option1 year
Unused commitment fee (as a percent)0.20%
LIBOR
Debt Obligations
Basis spread over base rate (as a percent)1.15%

Debt Obligations - Component (D

Debt Obligations - Component (Details) - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2020Dec. 31, 2019
Debt Obligations
Applicable Interest Rate (as a percent)3.95%
Outstanding Balance $ 664,344 $ 693,388
Available for borrowing $ 510,100 527,600
Bank Borrowings
Debt Obligations
Applicable Interest Rate (as a percent)1.33%
Outstanding Balance $ 89,900 93,900
Available for borrowing $ 510,100 506,100
Senior Unsecured Notes
Debt Obligations
Applicable Interest Rate (as a percent)4.36%
Outstanding Balance $ 574,444 599,488
Available for borrowing $ 21,500
Senior Unsecured Notes | Minimum
Debt Obligations
Interest rate (as a percent)3.85%
Senior Unsecured Notes | Maximum
Debt Obligations
Interest rate (as a percent)5.03%

Debt Obligations - Borrowings a

Debt Obligations - Borrowings and Repayments (Details) - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Borrowings
Bank borrowings $ 24,000 $ 73,400
Total24,000 73,400
Repayments
Repayment of bank borrowings(28,000)(20,000)
Senior unsecured notes(25,160)(14,667)
Total(53,160)(34,667)
Bank Borrowings
Borrowings
Bank borrowings24,000 73,400
Repayments
Repayment of bank borrowings(28,000)(20,000)
Senior Unsecured Notes
Repayments
Senior unsecured notes $ (25,160) $ (14,667)

Equity - Common Stock (Details)

Equity - Common Stock (Details) - Common Stock - USD ($)9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Equity
Number of shares repurchased76,574 45,030
Equity Distribution Agreements
Equity
Maximum offering capacity under shelf registration statement $ 200,000,000
Shares common stock sold0
Amount available under effective shelf registration statement $ 200,000,000

Equity - Share Repurchase Plan

Equity - Share Repurchase Plan (Details) - USD ($)9 Months Ended
Sep. 30, 2020Mar. 31, 2020
Equity
Shares authorized for repurchase5,000,000
Number of shares purchased615,827
Average price per share $ 29.25
Total purchase price of shares $ 18,012,000

Equity - Noncontrolling Interes

Equity - Noncontrolling Interest (Details) - USD ($) $ in Thousands9 Months Ended
Sep. 30, 2019Sep. 30, 2020Dec. 31, 2019
Noncontrolling interest
Gross Consolidated Assets $ 1,477,244 $ 1,514,209
Non-controlling interests8,404 $ 8,483
Purchase Price $ 38,951
Partnership
Noncontrolling interest
Gross Consolidated Assets83,429
Non-controlling interests8,404
2019 Acquisitions | SNF
Noncontrolling interest
Purchase Price19,500
2019 Acquisitions | ALF
Noncontrolling interest
Purchase Price $ 16,719
Virginia | 2019 Acquisitions | Partnership | ALF and MC
Noncontrolling interest
Gross Consolidated Assets16,895
Non-controlling interests919
Oregon | 2018 Acquisitions | Partnership | ALF and MC
Noncontrolling interest
Gross Consolidated Assets18,447
Non-controlling interests1,081
Oregon | 2018 Acquisitions | Partnership | ILF
Noncontrolling interest
Gross Consolidated Assets14,400
Non-controlling interests2,858
Wisconsin | 2017 Acquisitions | Partnership | ILF/ALF/MC
Noncontrolling interest
Gross Consolidated Assets22,007
Non-controlling interests2,305
South Carolina | 2017 Acquisitions | Partnership | ALF and MC
Noncontrolling interest
Gross Consolidated Assets11,680
Non-controlling interests $ 1,241

Equity - Distributions (Details

Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands1 Months Ended3 Months Ended9 Months Ended
Dec. 31, 2020Nov. 30, 2020Oct. 31, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Sep. 30, 2020Sep. 30, 2019
Dividend Distributions
Paid $ 67,894 $ 68,241
Common Stock cash distributions $ 0.57 $ 0.57 $ 0.57 $ 0.57 $ 0.57 $ 0.57 $ 0.57
Dividends declared and paid per common share $ 0.57 $ 0.57 $ 1.71 $ 1.71
Common Stock
Dividend Distributions
Declared $ 67,894 $ 68,241 $ 67,894 $ 68,241
Paid $ 67,894 $ 68,241
Common Stock cash distributions $ 0.19 $ 0.19
Common Stock | Subsequent Event
Dividend Distributions
Dividends declared and paid per common share $ 0.19 $ 0.19 $ 0.19
Common Stock | Performance-based stock units
Dividend Distributions
Paid $ 586 $ 300

Equity - Options (Details)

Equity - Options (Details) - USD ($) $ / shares in Units, $ in Thousands9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Stock Based Compensation Plans
Options outstanding (in shares)15,000
Options exercisable (in shares)15,000
Stock options granted (in shares)0 0
2015 Plan
Stock Based Compensation Plans
Total shares reserved for issuance of common stock related to the conversion of preferred stock1,400,000
Stock options
Stock Based Compensation Plans
Options Exercised (in shares)5,000
Weighted Average Exercise Price (in dollars per share) $ 24.65
Options Value $ 123,000
Market Value $ 233,000

Equity - Restricted Stock and p

Equity - Restricted Stock and performance-based stock units (Details) - shares9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Restricted stock and performance-based stock units
Restricted stock and performance based stock units activity
Outstanding at the beginning of the year (in shares)345,633 325,750
Granted (in shares)167,375 147,608
Vested (in shares)(166,051)(127,725)
Outstanding at the end of the year (in shares)346,957 345,633
Performance-based stock units
Restricted stock and performance based stock units activity
Vested (in shares)(81,574)(48,225)

Equity - Restricted Stock (Deta

Equity - Restricted Stock (Details) - Restricted stock and performance-based stock units - USD ($)9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Restricted stock awards
Number of shares granted167,375 147,608
Compensation expense related to share-based award $ 5,231,000 $ 4,938,000
Nonvested awards
Remaining compensation expense10,078,000
2020
Nonvested awards
Remaining compensation expense1,781,000
2021
Nonvested awards
Remaining compensation expense5,201,000
2022
Nonvested awards
Remaining compensation expense2,729,000
2023
Nonvested awards
Remaining compensation expense $ 367,000
Grant Date Price $48.95 | Three year vesting
Restricted stock awards
Number of shares granted76,464
Granted (in dollars per share) $ 48.95
Vesting period3 years
Grant Date Price $49.98 | TSR Targets
Restricted stock awards
Number of shares granted66,027
Granted (in dollars per share) $ 49.98
Vesting period4 years
Grant Date Price $49.98 | Accelerated TSR Targets
Restricted stock awards
Vesting period3 years
Grant Date Price $38.45 | Three year vesting
Restricted stock awards
Number of shares granted15,000
Granted (in dollars per share) $ 38.45
Vesting period3 years
Grant Date Price $38.45 | Vesting Date, May 27, 2021
Restricted stock awards
Number of shares granted9,884
Granted (in dollars per share) $ 38.45
Grant Date Price $46.54 | Three year vesting
Restricted stock awards
Number of shares granted78,276
Granted (in dollars per share) $ 46.54
Vesting period3 years
Grant Date Price $46.54 | TSR Targets
Restricted stock awards
Number of shares granted60,836
Granted (in dollars per share) $ 46.54
Vesting period4 years
Grant Date Price $46.54 | Accelerated TSR Targets
Restricted stock awards
Vesting period3 years
Grant Date Price $44.73 | Vesting Date, May 29, 2020
Restricted stock awards
Number of shares granted8,496
Granted (in dollars per share) $ 44.73

Commitments and Contingencies -

Commitments and Contingencies - Summary of Commitments (Details) $ in Thousands9 Months Ended
Sep. 30, 2020USD ($)
Commitments and Contingencies
Investment Commitment $ 79,767
2020 Funding16,690
Total Commitments funded27,607
Remaining commitment52,160
Real estate properties
Commitments and Contingencies
Investment Commitment28,713
2020 Funding12,487
Total Commitments funded17,459
Remaining commitment11,254
Accrued incentives and earn-out liabilities
Commitments and Contingencies
Investment Commitment9,000
Remaining commitment9,000
Mortgage loans
Commitments and Contingencies
Investment Commitment27,200
2020 Funding2,928
Total Commitments funded8,873
Remaining commitment18,327
Commitments To Expand and Renovate Properties
Commitments and Contingencies
Investment Commitment9,200
Contingent Funding Commitments
Commitments and Contingencies
Investment Commitment18,000
Joint venture investments
Commitments and Contingencies
Investment Commitment13,000
Remaining commitment13,000
Notes receivable
Commitments and Contingencies
Investment Commitment1,854
2020 Funding1,275
Total Commitments funded1,275
Remaining commitment $ 579

Major Operators (Details)

Major Operators (Details)9 Months Ended
Sep. 30, 2020propertyitem
Major Operators
Number of major operators2
Prestige Healthcare | SNF
Major Operators
Number of beds | property24
Number of beds/units2,922
Prestige Healthcare | ALF
Major Operators
Number of beds/units93
Senior Lifestyle Corporation | ALF
Major Operators
Number of beds | property23
Number of beds/units1,457
Operator Concentration Risk | SNF
Major Operators
Number of beds | property24
Number of beds/units2,922
Operator Concentration Risk | ALF
Major Operators
Number of beds | property23
Number of beds/units1,550
Total Revenue | Operator Concentration Risk
Major Operators
Concentration risk (as a percent)30.20%
Total Revenue | Operator Concentration Risk | Prestige Healthcare
Major Operators
Concentration risk (as a percent)19.80%
Total Revenue | Operator Concentration Risk | Senior Lifestyle Corporation
Major Operators
Concentration risk (as a percent)10.40%
Total Assets | Operator Concentration Risk
Major Operators
Concentration risk (as a percent)28.20%
Total Assets | Credit Concentration Risk | Prestige Healthcare
Major Operators
Concentration risk (as a percent)18.00%
Total Assets | Credit Concentration Risk | Senior Lifestyle Corporation
Major Operators
Concentration risk (as a percent)10.20%

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Sep. 30, 2020Sep. 30, 2019
Net income $ 12,338 $ 1,952 $ 63,722 $ 12,631 $ 27,280 $ 20,534 $ 20,427 $ 78,012 $ 68,241
Less income allocated to non-controlling interests(121)(88)(292)(257)
Less income allocated to participating securities:
Non-forfeitable dividends on participating securities(103)(93)(294)(279)
Income allocated to participating securities(19)(45)(19)
Total net income allocated to participating securities(103)(112)(339)(298)
Net income available to common stockholders12,114 27,080 77,381 67,686
Net income for diluted net income per share $ 12,114 $ 27,080 $ 77,381 $ 67,686
Reconciliation of shares
Shares for basic net income per share39,061 39,586 39,218 39,565
Effect of dilutive securities: (Shares)
Total effect of dilutive securities (in shares)51 379 51 379
Shares for diluted net income per share39,112 39,965 39,269 39,944
Basic (in dollars per share) $ 0.31 $ 0.68 $ 1.97 $ 1.71
Diluted (in dollars per share) $ 0.31 $ 0.68 $ 1.97 $ 1.69
Stock options
Effect of dilutive securities: (Shares)
Stock options and performance-based stock units (in shares)4 4
Performance-based stock units
Effect of dilutive securities: (Shares)
Stock options and performance-based stock units (in shares)51 375 51 375

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in ThousandsSep. 30, 2020USD ($)itemDec. 31, 2019USD ($)item
Fair value measurements
Mortgage loans receivable $ 257,671 $ 254,099
Senior unsecured notes, net of debt issue costs $ 574,444 $ 599,488
Level 3 | Senior Unsecured Notes maturing before 2026 | Discount Rate
Fair value measurements
Future cash outflows discount rate (as a percent) | item0.0375 0.0370
Level 3 | Senior Unsecured Notes maturing 2026 and after | Discount Rate
Fair value measurements
Future cash outflows discount rate (as a percent) | item0.0400 0.0390
Level 3 | Mortgage Loans Receivable | Discount Rate
Fair value measurements
Future cash inflows discount rate (as a percent) | item0.100 0.090
Carrying Value
Fair value measurements
Mortgage loans receivable $ 257,671 $ 254,099
Bank borrowings89,900 93,900
Senior unsecured notes, net of debt issue costs574,444 599,488
Fair Value
Fair value measurements
Bank borrowings89,900 93,900
Fair Value | Level 3
Fair value measurements
Mortgage loans receivable299,151 312,824
Senior unsecured notes, net of debt issue costs $ 582,480 $ 612,375

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares1 Months Ended3 Months Ended9 Months Ended
Dec. 31, 2020Nov. 30, 2020Oct. 31, 2020Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Equity
Dividends declared and paid per common share $ 0.57 $ 0.57 $ 1.71 $ 1.71
Subsequent Event | Common Stock
Equity
Dividends declared and paid per common share $ 0.19 $ 0.19 $ 0.19