Annual report pursuant to Section 13 and 15(d)

Property Portfolio (Tables)

v3.7.0.1
Property Portfolio (Tables)
 12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Table Text Block]
A rollforward of the gross investment in land, building and improvements as of December 31, 2016, resulting from the ten acquisitions completed during the year ended December 31, 2016, is as follows:
 
 
 
 
 
 
 
Improvements and
 
 
 
 
 
 
 
 
 
Intangible Assets
 
Gross
 
 
 
Land
 
Building
 
and Liabilities
 
Investment
 
Balances as of January 1, 2016
 
$
4,563,852
 
$
51,574,271
 
$
-
 
$
56,138,123
 
Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
HealthSouth Facilities
 
 
4,285,439
 
 
55,442,121
 
 
8,365,440
 
 
68,093,000
 
Ellijay Facilities
 
 
777,283
 
 
2,929,183
 
 
1,193,534
 
 
4,900,000
 
Carson City Facilities
 
 
760,000
 
 
3,268,350
 
 
-
 
 
4,028,350
 
Sandusky Facilities
 
 
228,427
 
 
4,518,978
 
 
-
 
 
4,747,405
 
Watertown Facilities
 
 
1,100,000
 
 
8,002,171
 
 
-
 
 
9,102,171
 
East Orange Facility
 
 
2,150,000
 
 
10,112,200
 
 
-
 
 
12,262,200
 
Reading Facilities
 
 
1,440,000
 
 
7,939,985
 
 
-
 
 
9,379,985
 
Melbourne Facility
 
 
1,200,000
 
 
14,250,000
 
 
-
 
 
15,450,000
 
Westland Facility
 
 
230,000
 
 
4,520,000
 
 
-
 
 
4,750,000
 
Plano Facility
 
 
1,050,000
 
 
16,696,139
 
 
-
 
 
17,746,139
 
Total Additions:
 
 
13,221,149
 
 
127,679,127
 
 
9,558,974
 
 
150,459,250
 
Balances as of December 31, 2016
 
$
17,785,001
 
$
179,253,398
 
$
9,558,974
 
$
206,597,373
 
 
A rollforward of the gross investment in land, building and improvements as of December 31, 2015, resulting from the two acquisitions completed during the year ended December 31, 2015, is as follows:
 
 
 
 
 
 
 
Improvements and
 
 
 
 
 
 
 
 
 
Intangible Assets
 
Gross
 
 
 
Land
 
Building
 
and Liabilities
 
Investment
 
Balances as of January 1, 2015
 
$
572,400
 
$
23,801,362
 
$
-
 
$
24,373,762
 
Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
Tennessee Facilities
 
 
2,704,452
 
 
17,451,238
 
 
-
 
 
20,155,690
 
West Mifflin Facility
 
 
1,287,000
 
 
10,321,671
 
 
-
 
 
11,608,671
 
Total Additions:
 
 
3,991,452
 
 
27,772,909
 
 
-
 
 
31,764,361
 
Balances as of December 31, 2016
 
$
4,563,852
 
$
51,574,271
 
$
-
 
$
56,138,123
 
Business Acquisition, Pro Forma Information [Table Text Block]
The following table illustrates the unaudited pro forma consolidated revenue, net loss, and earnings per share as if the entities that the Company acquired during the year ended December 31 2016 that were accounted for as business combinations (the HealthSouth, Ellijay, and Westland facilities) had occurred as of January 1, 2015:
 
 
 
Year Ended December 31,
 
 
 
2016
 
2015
 
 
 
(unaudited)
 
 
 
 
 
 
 
Revenue
 
$
14,097,839
 
$
8,456,721
 
Net loss
 
$
(4,405,827)
 
$
(776,656)
 
Loss per share
 
$
(0.47)
 
$
(3.11)
 
Weighted average shares outstanding
 
 
9,302,244
 
 
250,000
 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]
The following is a summary of the carrying amount of intangible assets and liabilities as of December 31, 2016. The Company had no intangible assets or liabilities as of December 31, 2015.
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
Accumulated
 
 
 
 
 
Cost
 
Amortization
 
Net
 
Assets
 
 
 
 
 
 
 
 
 
 
In-place leases
 
$
5,826,556
 
$
(34,789)
 
$
5,791,767
 
Above market leases
 
 
74,096
 
 
(443)
 
 
73,653
 
Leasing costs
 
 
1,286,389
 
 
(7,533)
 
 
1,278,856
 
 
 
$
7,187,041
 
$
(42,765)
 
$
7,144,276
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Below market leases
 
$
279,354
 
$
(1,437)
 
$
277,917
 
Finite-lived Intangible Assets Amortization Expense [Table Text Block]
The following is a summary of the acquired lease intangible amortization for the year ended December 31, 2016.
 
Amortization expense related to in-place leases
 
$
34,789
 
Amortization expense related to leasing costs
 
$
7,533
 
Decrease of rental revenue related to above market leases
 
$
443
 
Increase of rental revenue related to below market leases
 
$
1,437
 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
Future aggregate net amortization of the acquired lease intangible as of December 31, 2016, is as follows:
 
 
 
Net Increase
 
Net Increase
 
 
 
in Revenue
 
in Expenses
 
2017
 
$
23,090
 
$
1,281,463
 
2018
 
 
23,090
 
 
1,281,463
 
2019
 
 
23,090
 
 
1,281,463
 
2020
 
 
23,090
 
 
1,281,463
 
2021
 
 
20,246
 
 
666,850
 
Thereafter
 
 
91,658
 
 
1,277,921
 
Total
 
$
204,264
 
$
7,070,623
 
HealthSouth Facilities [Member]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following table presents the preliminary purchase price allocation for the assets acquired as part of the HealthSouth facilities acquisitions:
 
Land and site improvements
 
$
5,614,486
 
Building and tenant improvements
 
 
56,220,509
 
In place leases
 
 
5,154,249
 
Above market lease intangibles
 
 
74,096
 
Leasing costs
 
 
1,088,813
 
Below market lease intangibles
 
 
(59,153)
 
Total purchase price
 
$
68,093,000
 
Ellijay Facilities [Member]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following table presents the preliminary purchase price allocation for the assets acquired as part of the HealthSouth facilities acquisition:
 
Land and site improvements
 
$
913,509
 
Building and tenant improvements
 
 
3,336,809
 
In place leases
 
 
672,307
 
Leasing commissions and legal fees
 
 
197,576
 
Below market lease intangibles
 
 
(220,201)
 
Total purchase price
 
$
4,900,000