Subsequent Events |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 | ||
| Subsequent Events [Abstract] | ||
| Subsequent Events [Text Block] |
Note 11 Subsequent Events Summary of Properties under Purchase Agreements Subsequent to June 30, 2017 Austin Facility The Company entered into a purchase contract, effective July 5, 2017, (the “Austin Purchase Agreement”) with Norvin Austin Rehab LLC, a Delaware limited liability company and an affiliate of Norvin Healthcare Properties (the “Austin Seller”), to acquire (i) an inpatient rehabilitation facility in Austin, Texas (the “Rehab Center”) and (ii) land that has been planned to accommodate the development of a long-term acute care hospital (together with the Rehab Center, the “Austin Facility”), and the tenant shall have the right during the initial lease term to cause the landlord to develop such land, at the landlord’s sole cost and expense, so long as both the landlord and tenant agree to a development plan and the lease terms that will govern the tenant’s occupancy of such development upon its completion. The aggregate purchase price of the Austin Facility is $40,650,000. The Austin Seller currently leases the Austin Facility to CTRH, LLC, which is a joint venture between subsidiaries of Kindred Healthcare and Seton Healthcare, which is part of the Ascension Health System, pursuant to an absolute triple-net lease agreement (the “Austin Facility Lease”). Upon the closing of the acquisition of the Austin Facility, the Company intends, through a wholly-owned subsidiary of the Company’s Operating Partnership, to assume the Austin Facility Lease. The Company’s obligation to close the acquisition is subject to certain conditions. The Company has the right to terminate, without penalty, the Austin Purchase Agreement on or before August 14, 2017, if, in its sole discretion, it is not satisfied with the results of its ongoing due diligence investigation. If the Company does not terminate the contract by August 14, 2017, the Company’s earnest money deposit in the amount of $300,000 becomes non-refundable, and the Company must deposit an additional earnest money deposit in the amount of $300,000, for a total of $600,000 in earnest money funds, which will then be non-refundable except in the event of an Austin Seller default or failure of a condition to closing. The Austin Purchase Agreement is also subject to other customary terms and conditions as set forth in the Austin Purchase Agreement. Although the Company believes completion of this acquisition is probable, there is no assurance that the Company will close this acquisition. The Company expects this acquisition to be completed during the third quarter of 2017 and intends to fund the acquisition using borrowings from its revolving credit facility. Dividend Paid On July 10, 2017 the Company paid the second quarter 2017 dividend that was announced on June 16, 2017 in the amount of $3,604,531. Follow-On Offering Over-Allotment Exercised On July 20, 2017 the Company closed the over-allotment option granted to the underwriters in the previously disclosed follow-on offering, resulting in the issuance of an additional 525,000 shares of the Company’s common stock for gross proceeds of $4,725,000. After deducting underwriting discounts, advisory fees, and other offering expenses, the Company received net proceeds of $4,465,125 related to the shares of common stock issued pursuant to the exercise of the over-allotment option. |