What changed in this filing

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Item 2. Properties

2021-02-03 compared with 2020-02-05 · 66 added, 20 removed, 2 unchanged (98% of the section changed)

Service Center.

Our Service Center is located in San Juan Capistrano, California for our Service Center.

In June 2018, we acquired an office building for a purchase price of $31.0 million to accommodate our growing Service Center team.

Our Service Center is located in San Juan Capistrano, California.

In June 2018, we acquired an office space for a purchase price of $31.0 million to accommodate our growing Service Center team.

The property consists of approximately 108,058 square feet of usable office space.

We completed the renovation and relocated our Service Center to San Juan Capistrano in June 2019.

In addition, we lease a portion of the space within the office building to third-party tenants.

Prior to June 2019, we leased 29,829 square feet of office space in Mission Viejo, California for our Service Center pursuant to a lease that expired in August 2019.

In 2015, we expanded our information technology department and entered into a lease of an office space of 4,972 square feet in Rancho Santa Margarita, California.

The lease expired in July 31, 2019.

We had two options to extend our lease term at this location for an additional five-year term for each option that we did not exercise.

As of December 31, 2019 , we operated 223 affiliated facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Massachusetts, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin, with the operational capacity to serve approximately 24,779 patients.

As of December 31, 2019 , we operated 161 facilities under long-term lease arrangements, and have options to purchase 11 of those 161 facilities.

We owned an additional 90 real estate properties, which included 62 operations we operated and managed, real estate properties of 29 senior living operations that are leased to The Pennant Group, Inc.

as part of the spin-off transaction, and the Service Center location.

Of the 29 real estate, two senior living operations are located on the same real estate properties as the skilled nursing facilities.

We currently do not manage any facilities for third parties, except on a short-term basis pending receipt of new operating licenses by our operating subsidiaries.

The following table provides summary information regarding the number of operational beds and units at our skilled nursing and senior living facilities at December 31, 2019 :

Number of operational beds/units

Operational skilled nursing beds

Senior living units

Leased without a Purchase Option

Purchase Agreement or Leased with a Purchase Option

In addition, we lease a substantial portion of the space within the campus to third-party tenants.

Operating Facilities.

We operate 228 affiliated facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin, with the operational capacity to serve approximately 25,426 patients as of December 31, 2020.

Of the 228 facilities, we operate 164 facilities under long-term lease arrangements and have options to purchase 11 of those 164 facilities.

The results of our operating facilities are reflected in our transitional and skilled services segment for our skilled nursing operations and in "All Other" category for our senior living operations.

Table of Con tents

The following table provides summary information regarding the location of our facilities, operational beds and units by property type as of December 31, 2020:

Operated Facilities

Leased without a Purchase Option Leased with a Purchase Option Owned Total

Facilities Beds/Units Facilities Beds/Units Facilities Beds/Units Facilities Beds/Units

California 42 4,157 — — 6 691 48 4,848

Texas 41 5,051 5 714 17 2,278 63 8,043

Arizona 22 2,939 — — 10 1,579 32 4,518

Wisconsin — — — — 2 100 2 100

Utah 12 1,313 2 159 7 633 21 2,105

Colorado 9 764 1 125 7 703 17 1,592

Washington 7 637 — — 2 204 9 841

Idaho 6 471 — — 5 470 11 941

Nebraska 5 364 — — 2 350 7 714

Kansas 2 188 3 325 2 294 7 807

Iowa 6 399 — — — — 6 399

South Carolina — — — — 4 426 4 426

Nevada 1 92 — — — — 1 92

153 16,375 11 1,323 64 7,728 228 25,426

The following table sets forth the location of our facilities and the number of operational beds and units located at our skilled nursing, senior living and campus facilities as of December 31, 2020:

Facility Counts Bed / Unit Counts

Skilled Nursing Operations Senior Living Communities Campus Operations Total Skilled Nursing Beds Senior Living Units Total Beds / Units

California 47 — 1 48 4,783 65 4,848

Texas 57 1 5 63 7,529 514 8,043

Arizona 29 — 3 32 4,203 315 4,518

Wisconsin 2 — — 2 100 — 100

Utah 18 2 1 21 1,940 165 2,105

Colorado 11 5 1 17 972 620 1,592

Washington 9 — — 9 841 — 841

Idaho 9 — 2 11 904 37 941

Nebraska 4 1 2 7 413 301 714

Kansas — — 7 7 601 206 807

Iowa 4 — 2 6 368 31 399

South Carolina 4 — — 4 426 — 426

Nevada 1 — — 1 92 — 92

195 9 24 228 23,172 2,254 25,426

Real Estate Properties.

As of December 31, 2020, we owned 94 real estate properties in Arizona, California, Colorado, Idaho, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin, which include 64 of the 228 facilities that we operate and manage.

Of our 94 real estate properties, 31 senior living operations are leased to and operated by Pennant as part of the Spin-Off.

Two of the senior living operations leased by Pennant are located on the same real estate properties as skilled nursing facilities that we own and operate.

We further own the real estate property of our Service Center location and continue to lease a portion of the office space to third-party tenants.

Our real estate segment reflects the results of operations for our owned real estate properties.

Table of Con tents

The following table provides summary information regarding the location of our owned real estate properties as of December 31, 2020:

Owned and Operated by Ensign (1)

Owned and Leased to Pennant (1)

Service Center Total Properties (1)

California (1)

Arizona 10 1 — 11

Wisconsin 2 19 — 21

Colorado 7 — — 7

Washington 2 — — 2

Idaho 5 2 — 7

Nebraska 2 — — 2

Kansas 2 — — 2

South Carolina 4 — — 4

Nevada — 1 — 1

(1) In connection with the Spin-off, one senior living operation in California and one senior living operation in Texas, which are owned by Ensign and leased to Pennant are located on the same real estate property as a skilled nursing facility which we own and operate.

In each of these situations, the senior living operation is included in the total under "Owned and Leased to Pennant" and the skilled nursing operation is included in the total under "Owned and Operated by Ensign", however, the amount reflected under "Total Properties" only recognizes these operations as a single property.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties