What changed in this filing

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Item 2. Properties

2021-03-30 compared with 2020-03-24 · 64 added, 19 removed, 54 unchanged (61% of the section changed)

The following table presents certain additional information about the properties we owned as of December 31, 2020:

of Properties

Percent Leased (1)

Portfolio Number

of Properties Rentable

Square Feet Percent Leased (1)

Weighted Average Remaining Lease Term (2)

3 unchanged sentences

Triple-Net Leased Healthcare Facilities:

Seniors Housing — Triple Net Leased

6 514,962 90.7% 6.2 133,580

Post-Acute / Skilled Nursing (4)

8 354,016 100.0% 6.8 86,574

Total Triple-Net Leased Healthcare Facilities 14 868,978 94.5% (6) 6.5 220,154

Seniors Housing — Operating Properties (4)(7)

59 4,367,124 75.1% (5) N/A 1,229,288

Jupiter Property — Recently Developed 1 235,445 10.0% (6) 9.9 59,330

Land 2 N/A N/A N/A 3,665

Total Portfolio 193 9,383,484 $ 2,599,703

4 unchanged sentences

Impairment charges are already reflected within gross asset value.

One property was transitioned from Post-Acute / Skilled Nursing within our triple-net leased healthcare facilities segment to our SHOP segment during the period from January 1, 2019 through December 31, 2019 (the “Transition Property”).

The Transition Property is presented within the Seniors Housing — Operating Properties segment as of December 31, 2019 .

See Results of Operations for more information on this property.

(4) Four properties were transitioned from Post-Acute / Skilled Nursing within our triple-net leased healthcare facilities segment to our SHOP segment during the period from January 1, 2020 through December 31, 2020 (the “Transition Properties”).

The Transition Properties are presented within the SHOP segment as of December 31, 2020.

See Results of Operations for more information on these properties.

(5) Weighted by unit count as of December 31, 2020.

Our development property in Jupiter, Florida was substantially completed in the fourth quarter.

(6) Our development property in Jupiter, Florida was substantially completed in the fourth quarter of 2019.

See Note 3 — Real Estate Investments - “Development Property” to our consolidated financial statements included in this Annual Report on Form 10-K for additional information.

Although a portion of the property has been leased as of December 31, 2019, the property will be separately shown and excluded from combined occupancy numbers until a greater portion of the property has been leased and we consider the property stabilized.

Although a portion of the property has been leased as of December 31, 2020, the property is separately shown and excluded from combined occupancy numbers.

Occupancy in the triple-net leased healthcare facilities segment would have been 76.5% had the development property been included.

Not applicable.

This property is expected to be sold in late March or second quarter of 2021.

(7) One skilled nursing facility in Wellington, Florida is expected to be sold in 2021.

Subsequent to December 31, 2020, four MI SHOPs were transferred to their buyer pursuant to their sale in November, 2020.

See Note 18 — Subsequent Events for more information.

N/A Not applicable.

The following table details the geographic distribution, by state, of our portfolio as of December 31, 2020:

Number of Buildings

Annualized Rental Income (1)

Annualized Rental Income as a Percentage of the Total Portfolio

Rentable Square Feet

Percentage of Portfolio

State Number of Properties Annualized Rental Income (1)

Annualized Rental Income as a Percentage of the Total Portfolio Rentable Square Feet Percentage of Portfolio

Rentable Square Feet

(In thousands)

Alabama 1 $ 159 — % 5,564 0.1 %

Arizona 14 8,289 2.6 % 509,642 5.4 %

Arkansas 3 13,655 4.2 % 248,783 2.7 %

California 8 16,532 5.1 % 446,723 4.8 %

Colorado 2 1,477 0.5 % 59,366 0.6 %

Florida 23 66,601 20.6 % 1,439,315 15.3 %

Georgia 15 29,104 9.0 % 792,191 8.4 %

Idaho 1 3,104 1.0 % 55,846 0.6 %

Illinois 21 25,504 7.9 % 857,836 9.1 %

Indiana 5 3,613 1.1 % 163,035 1.7 %

Iowa 14 31,842 9.8 % 585,667 6.2 %

Kansas 1 4,286 1.3 % 49,360 0.5 %

Kentucky 2 3,218 1.0 % 92,875 1.0 %

Louisiana 1 621 0.2 % 17,830 0.2 %

Maryland 1 944 0.3 % 36,260 0.4 %

Massachusetts 3 890 0.3 % 36,563 0.4 %

Michigan 14 22,885 7.1 % 504,362 5.4 %

Minnesota 1 1,096 0.3 % 36,375 0.4 %

Mississippi 3 1,644 0.5 % 73,859 0.8 %

Missouri 2 7,151 2.2 % 96,016 1.0 %

Nevada 2 3,260 1.0 % 86,342 0.9 %

North Carolina 2 743 0.2 % 68,122 0.7 %

Ohio 3 1,190 0.4 % 69,882 0.7 %

Oregon 2 9,011 2.8 % 267,748 2.9 %

Pennsylvania 16 33,535 10.4 % 1,429,414 15.2 %

South Carolina 2 983 0.3 % 52,527 0.6 %

__________________________________________

Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2019 , which includes tenant concessions such as free rent, as applicable, as well as gross revenue from our SHOPs.

Tennessee 3 3,397 1.0 % 177,489 1.9 %

Texas 11 12,871 4.0 % 464,101 4.9 %

Virginia 3 4,236 1.1 % 234,090 2.5 %

Washington 1 2,024 0.6 % 52,900 0.6 %

Wisconsin 13 10,028 3.1 % 373,401 4.0 %

Total 193 $ 323,893 100 % 9,383,484 100 %

(1) Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2020, which includes tenant concessions such as free rent, as applicable, as well as annualized gross revenue from our SHOPs for the fourth quarter of 2020.

Future Minimum Lease Payments

2 unchanged sentences

These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to performance thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.

(In thousands)

Future Minimum

(In thousands) Future Minimum

Base Rent Payments

2021 $ 94,144

Thereafter 23,823

Future Lease Expirations Table

8 unchanged sentences

2021 79 $ 8,943 10.6% 403.111 10.0%

2022 76 14,889 17.6% 610.95 15.2%

2023 63 7,352 8.7% 309.079 7.7%

2024 89 11,294 13.3% 536.423 13.3%

2025 43 5,741 6.8% 229.614 5.7%

2026 44 14,484 17.1% 867.029 21.4%

2027 61 12,071 14.2% 654.836 16.3%

2028 17 5,121 6.0% 205.147 5.1%

2029 11 2,365 2.8% 100.513 2.5%

2030 16 2,499 2.9% 111.269 2.8%

Total 499 $ 84,759 100.0% 4,027.971 100.0%

_____________

(1) Annualized rental income on a straight-line basis for the leases in place in the property portfolio as of December 31, 2020, excluding SHOPs, which includes tenant concessions such as free rent, as applicable.

5 unchanged sentences

In December 2014, we purchased Wellington at Hershey’s Mill, a seniors housing property located in West Chester, Pennsylvania.

Wellington at Hershey’s Mill, which is leased to one of our TRSs and operated and managed on our behalf by a third-party operator in our SHOP segment, contains 491,710 rentable square feet and consists of 193 units dedicated to independent living patients, 64 units dedicated to assisted living patients and 36 units for patients requiring skilled nursing services.

Wellington at Hershey’s Mill, which is leased to our TRS and operated and managed on our behalf by a third-party operator in our SHOP segment, contains 491,710 rentable square feet and consists of 193 units dedicated to independent living patients, 64 units dedicated to assisted living patients and 36 units for patients requiring skilled nursing services.

As of December 31, 2020, this property represented 5.2% of our total rentable square feet and 5.3% of our total annualized rental income on a straight-line basis.

6 unchanged sentences

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