Item 2. Properties
Item 2. Properties.
As of December 31, 2020, our principal executive offices are located at 18191 Von Karman Avenue, Suite 300, Irvine, California 92612. We do not have an address separate from our advisor or our co-sponsors. Since we pay our advisor fees for its services, we do not pay rent for the use of its space.
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Real Estate Investments
As of December 31, 2020, we operated through four reportable business segments: MOBs, senior housing, senior housing — RIDEA and SNFs. We own 100% of our properties as of December 31, 2020, with the exception of Central Florida Senior Housing Portfolio, Pinnacle Beaumont ALF, Pinnacle Warrenton ALF, Catalina West Haven ALF, Louisiana Senior Housing Portfolio and Catalina Madera ALF. The following table presents certain additional information about our real estate investments as of December 31, 2020:
Reportable Segment Number of
Buildings GLA
(Sq Ft) % of
GLA Aggregate
Contract
Purchase Price Annualized
Base Rent/
NOI(1) % of
Annualized
Base Rent/
NOI Leased
Percentage(2)
Medical office buildings 43 2,136,000 43.9 % $ 605,122,000 $ 47,018,000 65.0 % 93.2 %
Senior housing — RIDEA 26 1,549,000 31.9 264,709,000 7,583,000 10.5 74.9 %
Senior housing 14 518,000 10.7 101,800,000 7,312,000 10.1 100 %
Skilled nursing facilities 11 660,000 13.5 117,800,000 10,386,000 14.4 100 %
Total/weighted average(3) 94 4,863,000 100 % $ 1,089,431,000 $ 72,299,000 100 % 95.7 %
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(1) With the exception of our senior housing — RIDEA facilities, amount is based on contractual base rent from leases in effect as of December 31, 2020. For our senior housing — RIDEA facilities, amount is based on annualized NOI, a non-GAAP financial measure. See Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations — Net Operating Income , for a further discussion of NOI.
(2) Leased percentage includes all leased space of the properties included in the respective segment including master leases, except for our senior housing — RIDEA facilities where leased percentage represents resident occupancy on the available units of the RIDEA facilities.
(3) Total portfolio weighted average leased percentage excludes our senior housing — RIDEA facilities.
We own fee simple interests in all of our buildings except for nine buildings for which we own fee simple interests in the building and improvements of such properties subject to the respective ground leases.
The following information generally applies to our properties:
• we believe all of our properties are adequately covered by insurance and are suitable for their intended purposes;
• we have no plans for any material renovations, improvements or development with respect to any of our properties, except in accordance with planned budgets;
• our properties are located in markets where we are subject to competition for attracting new tenants and residents, as well as retaining current tenants and residents; and
• depreciation is provided on a straight-line basis over the estimated useful lives of the buildings, up to 39 years, and over the shorter of the lease term or useful lives of the tenant improvements, up to 21 years. Furniture, fixtures and equipment is depreciated over the estimated useful life, up to 20 years.
For additional information regarding our real estate investments, see Schedule III, Real Estate and Accumulated Depreciation, to the Consolidated Financial Statements that are a part of this Annual Report on Form 10-K.
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Lease Expirations
Substantially all of our leases with residents at our senior housing — RIDEA facilities are for a term of one year or less. The following table presents the sensitivity of our annual base rent due to lease expirations for the next 10 years and thereafter at our properties as of December 31, 2020, excluding our senior housing — RIDEA facilities:
Year Number of
Expiring
Leases Total Square
Feet of Expiring
Leases % of Leased Area
Represented by
Expiring Leases Annual Base Rent
of Expiring Leases(1) % of Total
Annual Base Rent
Represented by
Expiring Leases
2021 43 102,000 3.2 % $ 2,213,000 3.0 %
2022 38 239,000 7.5 5,906,000 8.1
2023 39 248,000 7.8 6,260,000 8.6
2024 33 259,000 8.2 6,175,000 8.5
2025 31 283,000 8.9 6,973,000 9.6
2026 14 64,000 2.0 1,674,000 2.3
2027 15 120,000 3.8 3,301,000 4.5
2028 17 200,000 6.3 4,834,000 6.6
2029 20 211,000 6.7 6,268,000 8.6
2030 8 81,000 2.6 2,520,000 3.5
Thereafter 21 1,363,000 43.0 26,654,000 36.7
Total
279 3,170,000 100 % $ 72,778,000 100 %
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(1) Amount is based on the total annual contractual base rent expiring in the applicable year, based on leases in effect as of December 31, 2020.
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Geographic Diversification/Concentration Table
The following table lists our property locations and provides certain information regarding our portfolio’s geographic diversification/concentration as of December 31, 2020:
State Number of
Buildings GLA
(Sq Ft) % of
GLA Annualized
Base Rent/NOI(1) % of Annualized
Base Rent/NOI
Alabama 4 260,000 5.3 % $ 4,621,000 6.4 %
Arizona 1 34,000 0.7 879,000 1.2
California 9 340,000 7.0 1,440,000 2.0
Colorado 4 214,000 4.4 4,383,000 6.1
Connecticut 2 80,000 1.6 1,994,000 2.8
Florida 10 899,000 18.5 4,092,000 5.7
Georgia 5 177,000 3.6 3,987,000 5.5
Illinois 1 39,000 0.8 558,000 0.8
Indiana 7 289,000 5.9 4,835,000 6.6
Iowa 2 44,000 0.9 1,157,000 1.6
Kansas 1 76,000 1.6 2,226,000 3.1
Louisiana 7 257,000 5.3 2,336,000 3.2
Massachusetts 1 64,000 1.3 1,259,000 1.7
Michigan 12 490,000 10.1 7,293,000 10.1
Minnesota 1 46,000 0.9 1,043,000 1.4
Missouri 9 419,000 8.6 8,735,000 12.1
Nevada 1 58,000 1.2 1,634,000 2.3
New Jersey 2 49,000 1.0 1,159,000 1.6
North Carolina 1 191,000 3.9 4,426,000 6.1
Ohio 2 100,000 2.1 1,717,000 2.4
Oregon 1 62,000 1.3 1,637,000 2.3
Pennsylvania 1 36,000 0.7 807,000 1.1
Tennessee 1 27,000 0.6 605,000 0.8
Texas 1 61,000 1.3 1,301,000 1.8
Utah 1 66,000 1.4 274,000 0.4
Virginia 1 74,000 1.5 2,043,000 2.8
Washington 2 77,000 1.6 2,095,000 2.9
Wisconsin 4 334,000 6.9 3,763,000 5.2
Total 94 4,863,000 100 % $ 72,299,000 100 %
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(1) Amount is based on contractual base rent from leases in effect as of December 31, 2020, with the exception of our senior housing — RIDEA facilities, which amount is based on annualized NOI.
Indebtedness
For a discussion of our indebtedness, see Note 6, Mortgage Loans Payable, Net, and Note 7, Line of Credit and Term Loans, to the Consolidated Financial Statements that are a part of this Annual Report on Form 10-K.
Item 3. Legal Proceedings.
For a discussion of our legal proceedings, see Note 10, Commitments and Contingencies — Litigation, to the Consolidated Financial Statements that are part of this Annual Report on Form 10-K.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.