Subsequent Events |
12 Months Ended | |
|---|---|---|
Dec. 31, 2017 | ||
| Subsequent Events [Abstract] | ||
| Subsequent Events [Text Block] |
Note 12 Subsequent Events 2018 Investment Activity From January 1, 2018 through March 1, 2018, the Company purchased four facilities for an aggregate purchase price of $48.4 million. On March 6, 2018, we entered into a purchase and sale agreement to purchase a portfolio of four medical office buildings located in Belpre, Ohio for $64.2 million. The portfolio is 100% leased to Memorial Health System pursuant to four, triple-net leases with aggregate annual base rent of approximately $5 million. On January 24, 2018, we entered into a purchase and sale agreement to purchase a portfolio of five medical office buildings located in Orlando, Florida for $16.2 million. The portfolio is 100% leased to Orlando Health pursuant to five, triple-net leases with aggregate annual base rent of approximately $1.3 million. Increase in Capacity of our Revolving Credit Facility On March 6, 2018, the Company amended its revolving credit facility to increase the aggregate size of the facility by $90 million to $340 million. As of December 31, 2017, the Company had $164.9 million of outstanding borrowings under this facility. Dividends
On March 7, 2018, the Company announced the declaration of a cash dividend for the first quarter of 2018 of $0.20 per share of common stock to stockholders of record as of March 22, 2018, to be paid on April 10, 2018. On March 7, 2018, the Company announced the declaration of a cash dividend of $0.46875 per share to holders of its Series A Cumulative Redeemable Preferred Stock, $0.001 par value per share (the “Series A Preferred Stock”), of record as of April 15, 2018, to be paid on April 30, 2018. This dividend represents the Company’s quarterly dividend on its Series A Preferred Stock for the period from January 31, 2018 through April 29, 2018. Equity Awards Approved in 2018 On March 5, 2018, the Board approved the recommendations of the Compensation Committee of the Board with respect to the granting of Long-Term Performance-Based Incentive LTIP Awards (the “Long-Term Performance Awards”) and Long-Term Time-Based Incentive LTIP Awards (the “Long-Term Time-Based Awards”) to certain executive officers of the Company and employees of the Advisor who perform services for the Company, both of which were granted pursuant to the Company’s 2016 Equity Incentive Plan. Long-Term Performance-Based Awards
The Long-Term Performance-Based Awards are subject to the terms and conditions of LTIP Long-Term Performance-Based Award Agreements (“LTIP Long-Term Performance-Based Award Agreements”) between the Company and each grantee. The number of LTIP Units that each grantee is entitled to earn under the LTIP Long-Term Performance-Based Award Agreements will be determined following the conclusion of a three-year performance period based on the Company’s total shareholder return, which is determined based on a combination of appreciation in stock price and dividends paid during the performance period (“TSR”). Each grantee may earn up to 200% of the number of target LTIP units covered by the grantee’s Long-Term Performance-Based Award. Any target LTIP Units that are not earned will be forfeited and cancelled. The number of LTIP Units earned under the Long-Term Performance-Based Awards will be determined as soon as reasonably practicable following the end of the three-year performance period based on the Company’s TSR on an absolute basis (as to 75% of the Long-Term Performance-Based Award) and relative to the SNL Healthcare REIT Index (as to 25% of the Long-Term Performance-Based Award).
Vesting. LTIP units that are earned as of the end of the applicable performance period will be subject to forfeiture restrictions that will lapse (“vesting”), subject to continued employment through each vesting date, in two installments as follows: 50% of the earned LTIP units will vest upon being earned as of the end of the applicable performance period and the remaining 50% will vest on the first anniversary of the date on which such LTIP units are earned.
Distributions. Pursuant to the LTIP Long-Term Performance-Based Award Agreements, distributions equal to the dividends declared and paid by the Company will accrue during the applicable performance period on the maximum number of LTIP Units that the grantee could earn and will be paid with respect to all of the earned LTIP Units at the conclusion of the applicable performance period, in cash or by the issuance of additional LTIP Units at the discretion of the Compensation Committee of the Board. Long-Term Time-Based Awards The Long-Term Time-Based Awards will be subject to the terms and conditions of LTIP Unit Award Agreements between the Company and each grantee. Long-Term Time-Based Awards become vested, and cease to be subject to forfeiture, in equal one-third increments on each of the first, second and third anniversaries of the date of grant, which was March 5, 2018. |