Property Portfolio (Tables)
|
3 Months Ended |
Mar. 31, 2017 |
|---|
| Property, Plant and Equipment [Table Text Block] |
A rollforward of the gross investment in land, building and improvements as of March 31, 2017, resulting from the eight acquisitions completed during the three months ended March 31, 2017, is as follows: | | | | | | | Site & Tenant | | Investment | | | | Gross | | | | | Land | | Building | | Improvements | | Subtotal | | Intangibles(1)
| | Investment | | | Balances as of January 1, 2017 | | $ | 17,785,001 | | | 179,253,398 | | | 2,651,287 | | | 199,689,686 | | | 6,907,687 | | | 206,597,373 | | | Acquisitions: | | | | | | | | | | | | | | | | | | | | | Oklahoma City facilities | | | 2,086,885 | | | 37,713,709 | | | 1,876,730 | | | 41,677,324 | | | 7,822,676 | | | 49,500,000 | | | Great Bend facility | | | 836,929 | | | 23,800,758 | | | - | | | 24,637,687 | | | - | | | 24,637,687 | | | Sandusky facility | | | 409,204 | | | 3,997,607 | | | - | | | 4,406,811 | | | - | | | 4,406,811 | | | Clermont facility | | | - | | | 4,361,028 | | | 205,922 | | | 4,566,950 | | | 658,050 | | | 5,225,000 | | | Prescott facility | | | 790,637 | | | 3,821,417 | | | - | | | 4,612,054 | | | - | | | 4,612,054 | | | Las Cruces facility | | | 397,148 | | | 4,618,258 | | | - | | | 5,015,406 | | | - | | | 5,015,406 | | | Cape Coral facility | | | 353,349 | | | 7,016,511 | | | - | | | 7,369,860 | | | - | | | 7,369,860 | | | Lewisburg facility | | | 471,184 | | | 5,819,137 | | | 504,726 | | | 6,795,047 | | | 504,953 | | | 7,300,000 | | | Total Additions: | | | 5,345,336 | | | 91,148,425 | | | 2,587,378 | | | 99,081,139 | | | 8,985,679 | | | 108,066,818 | | | Balances as of March 31, 2017 | | $ | 23,130,337 | | | 270,401,823 | | | 5,238,665 | | | 298,770,825 | | | 15,893,366 | | | 314,664,191 | | | (1) | Represents intangible assets acquired net of intangible liabilities acquired. |
|
| Business Acquisition, Pro Forma Information [Table Text Block] |
The following table illustrates the unaudited pro forma consolidated revenue, net loss, and loss per share as if the entities that the Company acquired during the three months ended March 31, 2017 that were accounted for as business combinations (the OCOM North, OCOM South, Clermont and Lewisburg facilities) had occurred as of January 1, 2016: | | | Three Months Ended March 31, | | | | | 2017 | | 2016 | | | | | (unaudited) | | | | | | | | | | Revenue | | $ | 5,875,993 | | $ | 2,692,735 | | | Net loss | | $ | (2,784,362) | | $ | (3,183,101) | | | Loss per share | | $ | (0.16) | | $ | (5.09) | | | Weighted average shares outstanding | | | 17,605,675 | | | 624,978 | |
|
| 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 March 31, 2017: | | | As of March 31, 2017 | | | | | | | Accumulated | | | | | | | Cost | | Amortization | | Net | | | Assets | | | | | | | | | | | | In-place leases | | $ | 10,846,201 | | $ | (315,311) | | $ | 10,530,890 | | | Above market ground lease | | | 487,978 | | | (567) | | | 487,411 | | | Above market leases | | | 832,948 | | | (3,878) | | | 829,070 | | | Leasing costs | | | 4,215,221 | | | (70,611) | | | 4,144,610 | | | | | $ | 16,382,348 | | $ | (390,367) | | $ | 15,991,981 | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | Below market leases | | $ | 488,982 | | $ | (13,639) | | $ | 475,343 | |
The following is a summary of the carrying amount of intangible assets and liabilities as of December 31, 2016: | | | As of 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 three months ended March 31, 2017. The Company had no intangible assets or liabilities as of March 31, 2016 and therefore no amortization was incurred during the three months ended March 31, 2016. | Amortization expense related to in-place leases | | $ | 280,522 | | | Amortization expense related to leasing costs | | $ | 63,078 | | | Decrease of rental revenue related to above market ground lease | | $ | 567 | | | Decrease of rental revenue related to above market leases | | $ | 3,435 | | | Increase of rental revenue related to below market leases | | $ | 12,202 | |
|
| Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] |
As of March 31, 2017, scheduled future aggregate net amortization of acquired lease intangible assets and liabilities for each fiscal year ended December 31 are listed below: |
|
| Net Increase
(Decrease) in
Revenue |
|
| Net Increase in
Expenses |
| | 2017
|
| $
| 11,496 |
|
| $
| 1,442,015 |
| | 2018
|
|
| 8,855 |
|
|
| 1,905,036 |
| | 2019
|
|
| 8,855 |
|
|
| 1,905,036 |
| | 2020
|
|
| 8,855 |
|
|
| 1,905,036 |
| | 2021
|
|
| 6,010 |
|
|
| 1,290,423 |
| | Thereafter
|
|
| (885,209 | )
|
|
| 6,227,954 |
| | Total
|
| $
| (841,138 | )
|
| $
| 14,675,500 |
|
|
| 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 Ellijay 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 | | |
| OCOM 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 OCOM facilities acquisition: | Land and site improvements | | $ | 2,953,291 | | | Building and tenant improvements | | | 38,724,033 | | | Above market lease intangibles | | | 758,852 | | | In place leases | | | 4,391,750 | | | Leasing costs | | | 2,672,074 | | | Total purchase price | | $ | 49,500,000 | | |
| Lewisburg facility [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 Lewisburg Facility acquisition: | Land and site improvements | | $ | 681,223 | | | Building and tenant improvements | | | 6,113,824 | | | In place leases | | | 373,380 | | | Leasing commissions and legal fees | | | 131,573 | | | Total purchase price | | $ | 7,300,000 | | |
| Clermont Facility [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 Clermont Facility acquisition: | Site improvements | | $ | 144,498 | | | Building and tenant improvements | | | 4,422,452 | | | In place leases | | | 254,515 | | | Above market lease intangibles | | | 487,978 | | | Leasing costs | | | 125,185 | | | Below market lease intangibles | | | (209,628) | | | Total purchase price | | $ | 5,225,000 | | |