☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: | September 30, 2022 | ||||||||||
OR | |||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to |
Maryland | 20-4738467 | |||||||||||||||||||
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
16435 N. Scottsdale Road, Suite 320, | Scottsdale, | Arizona | 85254 | (480) | 998-3478 | ||||||||||||||||||||||||||||||
(Address of Principal Executive Office and Zip Code) | (Registrant’s telephone number, including area code) | ||||||||||||||||||||||||||||||||||
(Internet address) |
Title of | Trading | Name of | ||||||||||||
Class A Common | New York Stock Exchange |
☒ | Yes | No | ||||||||||||
☒ | Yes | No | ||||||||||||
☒ | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | |||||||||||||||||
☐ | Smaller reporting company | ☐ | Emerging growth company | |||||||||||||
☐ | |||||
☐ | Yes | ☒ | No | |||||||||||||
PART II - OTHER INFORMATION | |||||||||||
ASSETS | ||||||||
Unaudited SEPTEMBER 30, 2022 | DECEMBER 31, 2021 | |||||||
Real estate properties | ||||||||
Land | $ | 1,449,550 | $ | 387,918 | ||||
Buildings and improvements | 11,439,797 | 4,337,641 | ||||||
Lease intangibles | 968,914 | 120,478 | ||||||
Personal property | 11,680 | 11,761 | ||||||
Investment in financing receivable, net | 118,919 | 186,745 | ||||||
Financing lease right-of-use assets | 79,950 | 31,576 | ||||||
Construction in progress | 43,148 | 3,974 | ||||||
Land held for development | 73,321 | 24,849 | ||||||
Total real estate properties | 14,185,279 | 5,104,942 | ||||||
Less accumulated depreciation and amortization | (1,468,736) | (1,338,743) | ||||||
Total real estate properties, net | 12,716,543 | 3,766,199 | ||||||
Cash and cash equivalents | 57,583 | 13,175 | ||||||
Assets held for sale, net | 185,074 | 57 | ||||||
Operating lease right-of-use assets | 321,365 | 128,386 | ||||||
Investments in unconsolidated joint ventures | 327,752 | 161,942 | ||||||
Goodwill | 148,891 | 3,487 | ||||||
Other assets, net | 438,235 | 185,673 | ||||||
Total assets | $ | 14,195,443 | $ | 4,258,919 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities | ||||||||
Notes and bonds payable | $ | 5,570,139 | $ | 1,801,325 | ||||
Accounts payable and accrued liabilities | 231,018 | 86,108 | ||||||
Liabilities of assets held for sale | 10,644 | 294 | ||||||
Operating lease liabilities | 268,840 | 96,138 | ||||||
Financing lease liabilities | 72,378 | 22,551 | ||||||
Other liabilities | 203,398 | 67,387 | ||||||
Total liabilities | 6,356,417 | 2,073,803 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred stock, $.01 par value per share; 200,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A Common stock, $.01 par value per share; 1,000,000 shares authorized; 380,572 and 150,457 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 3,806 | 1,505 | ||||||
Additional paid-in capital | 9,586,556 | 3,972,917 | ||||||
Accumulated other comprehensive income (loss) | 5,524 | (9,981) | ||||||
Cumulative net income attributable to common stockholders | 1,342,819 | 1,266,158 | ||||||
Cumulative dividends | (3,211,492) | (3,045,483) | ||||||
Total stockholders' equity | 7,727,213 | 2,185,116 | ||||||
Non-controlling interest | 111,813 | — | ||||||
Total equity | 7,839,026 | 2,185,116 | ||||||
Total liabilities and equity | $ | 14,195,443 | $ | 4,258,919 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Revenues | ||||||||||||||
Rental income | $ | 298,931 | $ | 131,746 | $ | 578,052 | $ | 388,620 | ||||||
Interest income | 3,366 | 1,917 | 7,253 | 2,426 | ||||||||||
Other operating | 4,057 | 2,969 | 9,270 | 7,347 | ||||||||||
306,354 | 136,632 | 594,575 | 398,393 | |||||||||||
Expenses | ||||||||||||||
Property operating | 112,473 | 55,518 | 226,947 | 159,241 | ||||||||||
General and administrative | 16,741 | 8,207 | 38,317 | 25,251 | ||||||||||
Acquisition and pursuit costs | 482 | 974 | 3,137 | 2,388 | ||||||||||
Merger-related costs | 79,402 | — | 92,603 | — | ||||||||||
Depreciation and amortization | 158,117 | 50,999 | 267,889 | 150,904 | ||||||||||
367,215 | 115,698 | 628,893 | 337,784 | |||||||||||
Other income (expense) | ||||||||||||||
Gain on sales of real estate properties | 143,908 | 1,186 | 197,188 | 41,046 | ||||||||||
Interest expense | (53,044) | (13,334) | (82,248) | (39,857) | ||||||||||
Loss on extinguishment of debt | (1,091) | — | (2,520) | — | ||||||||||
Impairment of real estate properties | — | (10,669) | 25 | (16,581) | ||||||||||
Equity loss from unconsolidated joint ventures | (124) | (183) | (776) | (404) | ||||||||||
Interest and other (expense) income, net | (172) | — | (378) | 239 | ||||||||||
89,477 | (23,000) | 111,291 | (15,557) | |||||||||||
Net income (loss) | $ | 28,616 | $ | (2,066) | $ | 76,973 | $ | 45,052 | ||||||
Net income attributable to non-controlling interests | (312) | — | (312) | — | ||||||||||
Net income (loss) attributable to common stockholders | $ | 28,304 | $ | (2,066) | $ | 76,661 | $ | 45,052 | ||||||
Basic earnings per common share | $ | 0.08 | $ | (0.02) | $ | 0.36 | $ | 0.31 | ||||||
Diluted earnings per common share | $ | 0.08 | $ | (0.02) | $ | 0.35 | $ | 0.31 | ||||||
Weighted average common shares outstanding - basic | 328,805 | 143,818 | 209,807 | 141,521 | ||||||||||
Weighted average common shares outstanding - diluted | 332,031 | 143,818 | 210,944 | 141,613 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Net income (loss) | $ | 28,616 | $ | (2,066) | $ | 76,973 | $ | 45,052 | ||||||
Other comprehensive income | ||||||||||||||
Interest rate swaps | ||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | 763 | 1,131 | 2,672 | 3,340 | ||||||||||
Gains arising during the period on interest rate swaps | 6,083 | 36 | 12,905 | 2,079 | ||||||||||
6,846 | 1,167 | 15,577 | 5,419 | |||||||||||
Comprehensive income (loss) | 35,462 | (899) | 92,550 | 50,471 | ||||||||||
Less: comprehensive income attributable to non-controlling interests | (384) | — | (384) | — | ||||||||||
Comprehensive income (loss) attributable to common stockholders | $ | 35,078 | $ | (899) | $ | 92,166 | $ | 50,471 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||
Balance at June 30, 2022 | $ | 1,516 | $ | 4,002,525 | $ | (1,250) | $ | 1,314,515 | $ | (3,139,440) | $ | 2,177,866 | $ | — | $ | 2,177,866 | ||||||||||
Issuance of common stock, net of issuance costs | — | 84 | — | — | — | 84 | — | 84 | ||||||||||||||||||
Merger consideration transferred | 2,289 | 5,574,174 | — | — | — | 5,576,463 | 110,702 | 5,687,165 | ||||||||||||||||||
Non-controlling interests acquired | — | — | — | — | — | — | 1,266 | 1,266 | ||||||||||||||||||
Common stock redemptions | — | (41) | — | — | — | (41) | — | (41) | ||||||||||||||||||
Share-based compensation | 1 | 9,716 | — | — | — | 9,717 | — | 9,717 | ||||||||||||||||||
Redemption of non-controlling interest | — | 98 | — | — | — | 98 | (97) | 1 | ||||||||||||||||||
Net income | — | — | — | 28,304 | — | 28,304 | 312 | 28,616 | ||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 755 | — | — | 755 | 8 | 763 | ||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 6,019 | — | — | 6,019 | 64 | 6,083 | ||||||||||||||||||
Dividends to common stockholders ($0.31 per share) | — | — | — | — | (72,052) | (72,052) | (442) | (72,494) | ||||||||||||||||||
Balance at September 30, 2022 | $ | 3,806 | $ | 9,586,556 | $ | 5,524 | $ | 1,342,819 | $ | (3,211,492) | $ | 7,727,213 | $ | 111,813 | $ | 7,839,026 | ||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||
Balance at June 30, 2021 | $ | 1,455 | $ | 3,818,592 | $ | (13,580) | $ | 1,246,617 | $ | (2,956,830) | $ | 2,096,254 | $ | — | $ | 2,096,254 | ||||||||||
Issuance of common stock, net of issuance costs | 20 | 61,442 | — | — | — | 61,462 | — | 61,462 | ||||||||||||||||||
Common stock redemptions | — | — | — | — | — | — | — | — | ||||||||||||||||||
Share-based compensation | — | 2,538 | — | — | — | 2,538 | — | 2,538 | ||||||||||||||||||
Net loss | — | — | — | (2,066) | — | (2,066) | — | (2,066) | ||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 1,131 | — | — | 1,131 | — | 1,131 | ||||||||||||||||||
Losses arising during the period on interest rate swaps | — | — | 36 | — | — | 36 | — | 36 | ||||||||||||||||||
Dividends to common stockholders ($0.3025 per share) | — | — | — | — | (44,022) | (44,022) | — | (44,022) | ||||||||||||||||||
Balance at September 30, 2021 | $ | 1,475 | $ | 3,882,572 | $ | (12,413) | $ | 1,244,551 | $ | (3,000,852) | $ | 2,115,333 | $ | — | $ | 2,115,333 |
September 30, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments: | ||||||||||||||
Land | $ | 625,092 | $ | 596,269 | ||||||||||
Building and improvements | 6,701,356 | 6,507,816 | ||||||||||||
Lease intangibles | 506,010 | 628,621 | ||||||||||||
Construction in progress | 28,878 | 80,178 | ||||||||||||
7,861,336 | 7,812,884 | |||||||||||||
Accumulated depreciation and amortization | (1,747,354) | (1,702,719) | ||||||||||||
Real estate investments, net | 6,113,982 | 6,110,165 | ||||||||||||
Assets held for sale, net | 27,049 | — | ||||||||||||
Investment in unconsolidated joint venture | 63,213 | 64,360 | ||||||||||||
Cash and cash equivalents | 12,836 | 115,407 | ||||||||||||
Restricted cash | 6,628 | 3,358 | ||||||||||||
Receivables and other assets, net | 314,977 | 251,728 | ||||||||||||
Right-of-use assets - operating leases, net | 227,564 | 235,223 | ||||||||||||
Other intangibles, net | 9,382 | 10,451 | ||||||||||||
Total assets | $ | 6,775,631 | $ | 6,790,692 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Debt | $ | 3,079,190 | $ | 3,026,999 | ||||||||||
Accounts payable and accrued liabilities | 178,024 | 200,358 | ||||||||||||
Liabilities of assets held for sale | 263 | — | ||||||||||||
Derivative financial instruments - interest rate swaps | 9,377 | 14,957 | ||||||||||||
Security deposits, prepaid rent and other liabilities | 82,852 | 82,553 | ||||||||||||
Lease liabilities - operating leases | 195,115 | 198,367 | ||||||||||||
Intangible liabilities, net | 31,473 | 32,539 | ||||||||||||
Total liabilities | 3,576,294 | 3,555,773 | ||||||||||||
Commitments and contingencies | 0 | 0 | ||||||||||||
Equity: | ||||||||||||||
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding | — | — | ||||||||||||
Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 220,839,006 and 218,578,012 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 2,208 | 2,186 | ||||||||||||
Additional paid-in capital | 4,973,001 | 4,916,784 | ||||||||||||
Accumulated other comprehensive loss | (11,327) | (16,979) | ||||||||||||
Cumulative dividends in excess of earnings | (1,857,714) | (1,727,752) | ||||||||||||
Total stockholders’ equity | 3,106,168 | 3,174,239 | ||||||||||||
Non-controlling interests | 93,169 | 60,680 | ||||||||||||
Total equity | 3,199,337 | 3,234,919 | ||||||||||||
Total liabilities and equity | $ | 6,775,631 | $ | 6,790,692 | ||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 1,505 | $ | 3,972,917 | $ | (9,981) | $ | 1,266,158 | $ | (3,045,483) | $ | 2,185,116 | $ | — | $ | 2,185,116 | |||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 8 | 22,847 | — | — | — | 22,855 | — | 22,855 | |||||||||||||||||||||||||||||||||
Merger consideration transferred | 2,289 | 5,574,174 | — | — | — | 5,576,463 | 110,702 | 5,687,165 | |||||||||||||||||||||||||||||||||
Non-controlling interests acquired | — | — | — | — | — | — | 1,266 | 1,266 | |||||||||||||||||||||||||||||||||
Common stock redemptions | — | (248) | — | — | — | (248) | — | (248) | |||||||||||||||||||||||||||||||||
Share-based compensation | 4 | 16,768 | — | — | — | 16,772 | — | 16,772 | |||||||||||||||||||||||||||||||||
Redemption of non-controlling interest | — | 98 | — | — | — | 98 | (97) | 1 | |||||||||||||||||||||||||||||||||
Net Income | — | — | — | 76,661 | — | 76,661 | 312 | 76,973 | |||||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 2,664 | — | — | 2,664 | 8 | 2,672 | |||||||||||||||||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 12,841 | — | — | 12,841 | 64 | 12,905 | |||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.93 per share) | — | — | — | — | (166,009) | (166,009) | (442) | (166,451) | |||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | 3,806 | $ | 9,586,556 | $ | 5,524 | $ | 1,342,819 | $ | (3,211,492) | $ | 7,727,213 | $ | 111,813 | $ | 7,839,026 | |||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Total Stockholders’ Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1,395 | $ | 3,635,341 | $ | (17,832) | $ | 1,199,499 | $ | (2,870,027) | $ | 1,948,376 | $ | — | $ | 1,948,376 | |||||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 78 | 240,660 | — | — | — | 240,738 | — | 240,738 | |||||||||||||||||||||||||||||||||
Common stock redemptions | — | (1,610) | — | — | — | (1,610) | — | (1,610) | |||||||||||||||||||||||||||||||||
Share-based compensation | 2 | 8,181 | — | — | — | 8,183 | — | 8,183 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 45,052 | — | 45,052 | — | 45,052 | |||||||||||||||||||||||||||||||||
Reclassification adjustments for losses included in net income (interest expense) | — | — | 3,340 | — | — | 3,340 | — | 3,340 | |||||||||||||||||||||||||||||||||
Gains arising during the period on interest rate swaps | — | — | 2,079 | — | — | 2,079 | — | 2,079 | |||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.9075 per share) | — | — | — | — | (130,825) | (130,825) | — | (130,825) | |||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 1,475 | $ | 3,882,572 | $ | (12,413) | $ | 1,244,551 | $ | (3,000,852) | $ | 2,115,333 | $ | — | $ | 2,115,333 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | 189,832 | $ | 187,258 | $ | 569,676 | $ | 551,459 | |||||||||||||||
Interest and other operating income | 1,430 | 68 | 1,694 | 488 | |||||||||||||||||||
Total revenues | 191,262 | 187,326 | 571,370 | 551,947 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Rental | 59,568 | 57,248 | 176,556 | 170,310 | |||||||||||||||||||
General and administrative | 10,765 | 10,670 | 32,254 | 32,348 | |||||||||||||||||||
Transaction | 137 | 125 | 299 | 297 | |||||||||||||||||||
Depreciation and amortization | 76,056 | 75,892 | 227,307 | 228,484 | |||||||||||||||||||
Interest expense | 23,331 | 23,136 | 69,450 | 71,285 | |||||||||||||||||||
Impairment | — | — | 16,825 | — | |||||||||||||||||||
Total expenses | 169,857 | 167,071 | 522,691 | 502,724 | |||||||||||||||||||
Gain on sale of real estate, net | 143 | — | 32,896 | 1,991 | |||||||||||||||||||
Loss on extinguishment of debt, net | — | (27,726) | — | (27,726) | |||||||||||||||||||
Income from unconsolidated joint venture | 400 | 422 | 1,198 | 1,223 | |||||||||||||||||||
Other income | 94 | 117 | 401 | 290 | |||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Net (income) loss attributable to non-controlling interests | (370) | 105 | (1,461) | (438) | |||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 21,672 | $ | (6,827) | $ | 81,713 | $ | 24,563 | |||||||||||||||
Earnings per common share - basic: | |||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
Earnings per common share - diluted: | |||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 218,820 | 218,549 | 218,798 | 217,911 | |||||||||||||||||||
Diluted | 222,811 | 218,549 | 222,470 | 221,521 | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Change in unrealized gains (losses) on cash flow hedges | 1,435 | 2,054 | 5,750 | (23,672) | |||||||||||||||||||
Total other comprehensive income (loss) | 1,435 | 2,054 | 5,750 | (23,672) | |||||||||||||||||||
Total comprehensive income (loss) | 23,477 | (4,878) | 88,924 | 1,329 | |||||||||||||||||||
Comprehensive income (loss) attributable to non-controlling interests | (398) | 73 | (1,559) | (59) | |||||||||||||||||||
Total comprehensive income (loss) attributable to common stockholders | $ | 23,079 | $ | (4,805) | $ | 87,365 | $ | 1,270 |
Class A Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Dividends in Excess of Earnings | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 216,453 | $ | 2,165 | $ | 4,854,042 | $ | 4,546 | $ | (1,502,744) | $ | 3,358,009 | $ | 72,635 | $ | 3,430,644 | ||||||||||||||||||||||||||||||||
Issuance of common stock, net | 1,675 | 17 | 50,003 | — | — | 50,020 | — | 50,020 | |||||||||||||||||||||||||||||||||||||||
Share-based award transactions, net | 236 | 2 | 3,201 | — | — | 3,203 | — | 3,203 | |||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of common stock | (154) | (2) | (4,622) | — | — | (4,624) | — | (4,624) | |||||||||||||||||||||||||||||||||||||||
Redemption of non-controlling interest and other | 273 | 3 | 6,773 | — | — | 6,776 | (6,776) | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.315 per common share) | — | — | — | — | (68,867) | (68,867) | (1,134) | (70,001) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 17,901 | 17,901 | 307 | 18,208 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (22,138) | — | (22,138) | (360) | (22,498) | |||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 218,483 | 2,185 | 4,909,397 | (17,592) | (1,553,710) | 3,340,280 | 64,672 | 3,404,952 | |||||||||||||||||||||||||||||||||||||||
Issuance of OP Units in HTALP | — | — | — | — | — | — | 1,378 | 1,378 | |||||||||||||||||||||||||||||||||||||||
Share-based award transactions, net | (1) | — | 2,100 | — | — | 2,100 | — | 2,100 | |||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of common stock | (7) | — | (174) | — | — | (174) | — | (174) | |||||||||||||||||||||||||||||||||||||||
Redemption of non-controlling interest and other | 40 | — | 1,096 | — | — | 1,096 | (1,096) | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.315) per common share) | — | — | — | — | (68,827) | (68,827) | (1,162) | (69,989) | |||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | 13,489 | 13,489 | 236 | 13,725 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (3,176) | — | (3,176) | (52) | (3,228) | |||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 218,515 | 2,185 | 4,912,419 | (20,768) | (1,609,048) | 3,284,788 | 63,976 | 3,348,764 | |||||||||||||||||||||||||||||||||||||||
Share-based award transactions, net | 28 | 1 | 1,831 | — | — | 1,832 | — | 1,832 | |||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of common stock | (11) | — | (296) | — | — | (296) | — | (296) | |||||||||||||||||||||||||||||||||||||||
Redemption of non-controlling interest and other | 34 | — | 813 | — | — | 813 | (813) | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.320) per common share) | — | — | — | — | (69,938) | (69,938) | (1,133) | (71,071) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (6,827) | (6,827) | (105) | (6,932) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 2,021 | — | 2,021 | 33 | 2,054 | |||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 218,566 | $ | 2,186 | $ | 4,914,767 | $ | (18,747) | $ | (1,685,813) | $ | 3,212,393 | $ | 61,958 | $ | 3,274,351 |
Class A Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Dividends in Excess of Earnings | Total Stockholders’ Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 218,578 | $ | 2,186 | $ | 4,916,784 | $ | (16,979) | $ | (1,727,752) | $ | 3,174,239 | $ | 60,680 | $ | 3,234,919 | ||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Share-based award transactions, net | 354 | 3 | 3,334 | — | — | 3,337 | — | 3,337 | |||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of common stock | (119) | (1) | (3,247) | — | — | (3,248) | — | (3,248) | |||||||||||||||||||||||||||||||||||||||
Redemption of non-controlling interest and other | 11 | — | 255 | — | — | 255 | (255) | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.320) per common share) | — | — | — | — | (70,023) | (70,023) | (1,183) | (71,206) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 22,030 | 22,030 | 363 | 22,393 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 2,748 | — | 2,748 | 44 | 2,792 | |||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 218,824 | 2,188 | 4,917,126 | (14,231) | (1,775,745) | 3,129,338 | 59,649 | 3,188,987 | |||||||||||||||||||||||||||||||||||||||
Share-based award transactions, net | (6) | — | 2,065 | — | — | 2,065 | — | 2,065 | |||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of common stock | (5) | — | (129) | — | — | (129) | — | (129) | |||||||||||||||||||||||||||||||||||||||
Redemption of non-controlling interest and other | 13 | — | 291 | — | — | 291 | (291) | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.320) per common share) | — | — | — | — | (70,019) | (70,019) | (1,278) | (71,297) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 38,011 | 38,011 | 728 | 38,739 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 1,497 | — | 1,497 | 26 | 1,523 | |||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 218,826 | 2,188 | 4,919,353 | (12,734) | (1,807,753) | 3,101,054 | 58,834 | 3,159,888 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 2,000 | 20 | 53,715 | — | — | 53,735 | — | 53,735 | |||||||||||||||||||||||||||||||||||||||
Issuance of OP Units in HTALP in connection with acquisitions | — | — | — | — | — | — | 35,785 | 35,785 | |||||||||||||||||||||||||||||||||||||||
Share-based award transactions, net | — | — | (368) | — | — | (368) | — | (368) | |||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of common stock | — | — | (12) | — | — | (12) | — | (12) | |||||||||||||||||||||||||||||||||||||||
Redemption of non-controlling interest and other | 13 | — | 313 | — | — | 313 | (313) | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.325) per common share) | — | — | — | — | (71,633) | (71,633) | (1,535) | (73,168) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 21,672 | 21,672 | 370 | 22,042 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 1,407 | — | 1,407 | 28 | 1,435 | |||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 220,839 | $ | 2,208 | $ | 4,973,001 | $ | (11,327) | $ | (1,857,714) | $ | 3,106,168 | $ | 93,169 | $ | 3,199,337 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 83,174 | $ | 25,001 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 212,332 | 211,843 | |||||||||
Share-based compensation expense | 5,034 | 7,135 | |||||||||
Income from unconsolidated joint venture | (1,198) | (1,223) | |||||||||
Distributions from unconsolidated joint venture | 2,345 | 2,455 | |||||||||
Impairment | 16,825 | — | |||||||||
Gain on sale of real estate, net | (32,896) | (1,991) | |||||||||
Loss on extinguishment of debt, net | — | 27,726 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables and other assets, net | (3,214) | 3,282 | |||||||||
Accounts payable and accrued liabilities | (8,755) | (11,787) | |||||||||
Security deposits, prepaid rent and other liabilities | (2,029) | 7,227 | |||||||||
Net cash provided by operating activities | 271,618 | 269,668 | |||||||||
Cash flows from investing activities: | |||||||||||
Investments in real estate | (147,303) | (52,553) | |||||||||
Development of real estate | (48,482) | (49,479) | |||||||||
Proceeds from the sale of real estate | 67,621 | 6,420 | |||||||||
Capital expenditures | (78,047) | (59,016) | |||||||||
Collection of real estate notes receivable | 15,405 | 709 | |||||||||
Advances on real estate notes receivable | (66,526) | (6,000) | |||||||||
Net cash used in investing activities | (257,332) | (159,919) | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings on unsecured revolving credit facility | 180,000 | 1,329,862 | |||||||||
Payments on unsecured revolving credit facility | (130,000) | (1,429,862) | |||||||||
Proceeds from unsecured senior notes | — | 793,568 | |||||||||
Payments on unsecured senior notes | — | (300,000) | |||||||||
Payments on secured mortgage loans | — | (114,060) | |||||||||
Deferred financing costs | — | (6,532) | |||||||||
Debt extinguishment costs | — | (25,938) | |||||||||
Proceeds from issuance of common stock | 53,735 | 50,020 | |||||||||
Issuance of OP Units | — | 1,378 | |||||||||
Repurchase and cancellation of common stock | (3,389) | (5,094) | |||||||||
Dividends paid | (210,047) | (205,880) | |||||||||
Distributions paid to non-controlling interest of limited partners | (3,886) | (3,581) | |||||||||
Net cash (used in) provided by financing activities | (113,587) | 83,881 | |||||||||
Net change in cash, cash equivalents and restricted cash | (99,301) | 193,630 | |||||||||
Cash, cash equivalents and restricted cash - beginning of period | 118,765 | 37,616 | |||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 19,464 | $ | 231,246 |
OPERATING ACTIVITIES | ||||||||
NINE MONTHS ENDED September 30, | ||||||||
2022 | 2021 | |||||||
Net income | $ | 76,973 | $ | 45,052 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 267,889 | 150,904 | ||||||
Other amortization | 11,875 | 2,721 | ||||||
Share-based compensation | 16,772 | 8,183 | ||||||
Amortization of straight-line rent receivable (lessor) | (12,267) | (4,574) | ||||||
Amortization of straight-line rent on operating leases (lessee) | 2,016 | 1,115 | ||||||
Gain on sales of real estate properties | (197,188) | (41,046) | ||||||
Loss on extinguishment of debt | 2,520 | — | ||||||
Impairment of real estate properties | (25) | 16,581 | ||||||
Equity loss from unconsolidated joint ventures | 776 | 404 | ||||||
Distributions from unconsolidated joint ventures | 893 | — | ||||||
Non-cash interest from financing and notes receivable | (1,901) | (196) | ||||||
Changes in operating assets and liabilities: | ||||||||
Other assets, including right-of-use-assets | (19,230) | (9,947) | ||||||
Accounts payable and accrued liabilities | 35,769 | 215 | ||||||
Other liabilities | (58,213) | 843 | ||||||
Net cash provided by operating activities | 126,659 | 170,255 | ||||||
INVESTING ACTIVITIES | ||||||||
Acquisitions of real estate | (376,924) | (250,766) | ||||||
Development of real estate | (17,572) | (2,020) | ||||||
Additional long-lived assets | (97,797) | (69,647) | ||||||
Funding of mortgages and notes receivable | (3,441) | — | ||||||
Investments in unconsolidated joint ventures | (99,586) | (49,612) | ||||||
Investment in financing receivable | 167 | (104,654) | ||||||
Proceeds from sales of real estate properties and additional long-lived assets | 870,806 | 112,029 | ||||||
Proceeds from notes receivable repayments | 500 | — | ||||||
Cash assumed in Merger, including restricted cash for special dividend payment | 1,149,681 | — | ||||||
Net cash provided by (used in) investing activities | 1,425,834 | (364,670) | ||||||
FINANCING ACTIVITIES | ||||||||
Net (repayments)/borrowings on unsecured credit facility | (154,400) | 90,500 | ||||||
Borrowings on term loans | 666,500 | — | ||||||
Repayment on term loan | (718,500) | — | ||||||
Repayments of notes and bonds payable | (18,880) | (2,914) | ||||||
Redemption of notes and bonds payable | (2,184) | — | ||||||
Dividends paid | (165,735) | (130,825) | ||||||
Special dividend paid in relation to the Merger | (1,123,648) | — | ||||||
Net proceeds from issuance of common stock | 22,851 | 240,779 | ||||||
Common stock redemptions | (894) | (2,014) | ||||||
Distributions to non-controlling interest holders | (442) | — | ||||||
Debt issuance and assumption costs | (12,753) | (252) | ||||||
Payments made on finance leases | — | (162) | ||||||
Net cash (used in) provided by financing activities | (1,508,085) | 195,112 | ||||||
Increase in cash and cash equivalents | 44,408 | 697 | ||||||
Cash and cash equivalents at beginning of period | 13,175 | 15,303 | ||||||
Cash and cash equivalents at end of period | $ | 57,583 | $ | 16,000 | ||||
September 30, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate investments: | ||||||||||||||
Land | $ | 625,092 | $ | 596,269 | ||||||||||
Building and improvements | 6,701,356 | 6,507,816 | ||||||||||||
Lease intangibles | 506,010 | 628,621 | ||||||||||||
Construction in progress | 28,878 | 80,178 | ||||||||||||
7,861,336 | 7,812,884 | |||||||||||||
Accumulated depreciation and amortization | (1,747,354) | (1,702,719) | ||||||||||||
Real estate investments, net | 6,113,982 | 6,110,165 | ||||||||||||
Assets held for sale, net | 27,049 | — | ||||||||||||
Investment in unconsolidated joint venture | 63,213 | 64,360 | ||||||||||||
Cash and cash equivalents | 12,836 | 115,407 | ||||||||||||
Restricted cash | 6,628 | 3,358 | ||||||||||||
Receivables and other assets, net | 314,977 | 251,728 | ||||||||||||
Right-of-use assets - operating leases, net | 227,564 | 235,223 | ||||||||||||
Other intangibles, net | 9,382 | 10,451 | ||||||||||||
Total assets | $ | 6,775,631 | $ | 6,790,692 | ||||||||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||
Liabilities: | ||||||||||||||
Debt | $ | 3,079,190 | $ | 3,026,999 | ||||||||||
Accounts payable and accrued liabilities | 178,024 | 200,358 | ||||||||||||
Liabilities of assets held for sale | 263 | — | ||||||||||||
Derivative financial instruments - interest rate swaps | 9,377 | 14,957 | ||||||||||||
Security deposits, prepaid rent and other liabilities | 82,852 | 82,553 | ||||||||||||
Lease liabilities - operating leases | 195,115 | 198,367 | ||||||||||||
Intangible liabilities, net | 31,473 | 32,539 | ||||||||||||
Total liabilities | 3,576,294 | 3,555,773 | ||||||||||||
Commitments and contingencies | 0 | 0 | ||||||||||||
Partners’ Capital: | ||||||||||||||
Limited partners’ capital, 4,721,627 and 3,519,545 OP Units issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 92,899 | 60,410 | ||||||||||||
General partners’ capital, 220,839,006 and 218,578,012 OP Units issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 3,106,438 | 3,174,509 | ||||||||||||
Total partners’ capital | 3,199,337 | 3,234,919 | ||||||||||||
Total liabilities and partners’ capital | $ | 6,775,631 | $ | 6,790,692 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | 189,832 | $ | 187,258 | $ | 569,676 | $ | 551,459 | |||||||||||||||
Interest and other operating income | 1,430 | 68 | 1,694 | 488 | |||||||||||||||||||
Total revenues | 191,262 | 187,326 | 571,370 | 551,947 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Rental | 59,568 | 57,248 | 176,556 | 170,310 | |||||||||||||||||||
General and administrative | 10,765 | 10,670 | 32,254 | 32,348 | |||||||||||||||||||
Transaction | 137 | 125 | 299 | 297 | |||||||||||||||||||
Depreciation and amortization | 76,056 | 75,892 | 227,307 | 228,484 | |||||||||||||||||||
Interest expense | 23,331 | 23,136 | 69,450 | 71,285 | |||||||||||||||||||
Impairment | — | — | 16,825 | — | |||||||||||||||||||
Total expenses | 169,857 | 167,071 | 522,691 | 502,724 | |||||||||||||||||||
Gain on sale of real estate, net | 143 | — | 32,896 | 1,991 | |||||||||||||||||||
Loss on extinguishment of debt, net | — | (27,726) | — | (27,726) | |||||||||||||||||||
Income from unconsolidated joint venture | 400 | 422 | 1,198 | 1,223 | |||||||||||||||||||
Other income | 94 | 117 | 401 | 290 | |||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Net income attributable to non-controlling interests | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Earnings per common OP Unit - basic: | |||||||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
Earnings per common OP Unit - diluted: | |||||||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
Weighted average common OP Units outstanding: | |||||||||||||||||||||||
Basic | 222,811 | 222,101 | 222,470 | 221,521 | |||||||||||||||||||
Diluted | 222,811 | 222,101 | 222,470 | 221,521 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Change in unrealized gains (losses) on cash flow hedges | 1,435 | 2,054 | 5,750 | (23,672) | |||||||||||||||||||
Total other comprehensive income (loss) | 1,435 | 2,054 | 5,750 | (23,672) | |||||||||||||||||||
Total comprehensive income (loss) | 23,477 | (4,878) | 88,924 | 1,329 | |||||||||||||||||||
Comprehensive income attributable to non-controlling interests | — | — | — | — | |||||||||||||||||||
Total comprehensive income (loss) attributable to common unitholders | $ | 23,477 | $ | (4,878) | $ | 88,924 | $ | 1,329 |
General Partners’ Capital | Limited Partners’ Capital | Total Partners’ Capital | |||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||
Balance as of December 31, 2019 | 216,453 | $ | 3,358,279 | 3,834 | $ | 72,365 | $ | 3,430,644 | |||||||||||||||||||||
Issuance of general partner OP Units | 1,675 | 50,020 | — | — | 50,020 | ||||||||||||||||||||||||
Share-based award transactions, net | 236 | 3,203 | — | — | 3,203 | ||||||||||||||||||||||||
Redemption and cancellation of general partner OP Units | (154) | (4,624) | — | — | (4,624) | ||||||||||||||||||||||||
Redemption of limited partner OP Units and other | 273 | 6,776 | (273) | (6,776) | — | ||||||||||||||||||||||||
Distributions declared ($0.315 per common OP Unit) | — | (68,867) | — | (1,134) | (70,001) | ||||||||||||||||||||||||
Net income | — | 17,901 | — | 307 | 18,208 | ||||||||||||||||||||||||
Other comprehensive loss | — | (22,138) | — | (360) | (22,498) | ||||||||||||||||||||||||
Balance as of March 31, 2020 | 218,483 | 3,340,550 | 3,561 | 64,402 | 3,404,952 | ||||||||||||||||||||||||
Issuance of limited partner OP Units | 47 | 1,378 | 1,378 | ||||||||||||||||||||||||||
Share-based award transactions, net | (1) | 2,100 | — | — | 2,100 | ||||||||||||||||||||||||
Redemption and cancellation of general partner OP Units | (7) | (174) | — | — | (174) | ||||||||||||||||||||||||
Redemption of limited partner OP Units and other | 40 | 1,096 | (40) | (1,096) | — | ||||||||||||||||||||||||
Distributions declared ($0.315 per common OP Unit) | — | (68,827) | — | (1,162) | (69,989) | ||||||||||||||||||||||||
Net income | — | 13,489 | — | 236 | 13,725 | ||||||||||||||||||||||||
Other comprehensive loss | — | (3,176) | — | (52) | (3,228) | ||||||||||||||||||||||||
Balance as of June 30, 2020 | 218,515 | 3,285,058 | 3,568 | 63,706 | 3,348,764 | ||||||||||||||||||||||||
Share-based award transactions, net | 28 | 1,832 | — | — | 1,832 | ||||||||||||||||||||||||
Redemption and cancellation of general partner OP Units | (11) | (296) | — | — | (296) | ||||||||||||||||||||||||
Redemption of limited partner OP Units and other | 34 | 813 | (34) | (813) | — | ||||||||||||||||||||||||
Distributions declared ($0.320) per common OP Unit) | — | (69,938) | — | (1,133) | (71,071) | ||||||||||||||||||||||||
Net loss | — | (6,827) | — | (105) | (6,932) | ||||||||||||||||||||||||
Other comprehensive income | — | 2,021 | — | 33 | 2,054 | ||||||||||||||||||||||||
Balance as of September 30, 2020 | 218,566 | $ | 3,212,663 | 3,534 | $ | 61,688 | $ | 3,274,351 |
Supplemental Cash Flow Information | ||||||||
NINE MONTHS ENDED September 30, | ||||||||
2022 | 2021 | |||||||
Interest paid | $ | 83,382 | $ | 40,653 | ||||
Invoices accrued for construction, tenant improvements and other capitalized costs | $ | 52,840 | $ | 11,663 | ||||
Capitalized interest | $ | 848 | $ | 187 | ||||
General Partners’ Capital | Limited Partners’ Capital | Total Partners’ Capital | |||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||
Balance as of December 31, 2020 | 218,578 | $ | 3,174,509 | 3,520 | $ | 60,410 | $ | 3,234,919 | |||||||||||||||||||||
Share-based award transactions, net | 354 | 3,337 | — | — | 3,337 | ||||||||||||||||||||||||
Redemption and cancellation of general partner OP Units | (119) | (3,248) | — | — | (3,248) | ||||||||||||||||||||||||
Redemption of limited partner OP Units and other | 11 | 255 | (11) | (255) | — | ||||||||||||||||||||||||
Distributions declared ($0.320 per common OP Unit) | — | (70,023) | — | (1,183) | (71,206) | ||||||||||||||||||||||||
Net income | — | 22,030 | — | 363 | 22,393 | ||||||||||||||||||||||||
Other comprehensive income | — | 2,748 | — | 44 | 2,792 | ||||||||||||||||||||||||
Balance as of March 31, 2021 | 218,824 | 3,129,608 | 3,509 | 59,379 | 3,188,987 | ||||||||||||||||||||||||
Share-based award transactions, net | (6) | 2,065 | — | — | 2,065 | ||||||||||||||||||||||||
Redemption and cancellation of general partner OP Units | (5) | (129) | — | — | (129) | ||||||||||||||||||||||||
Redemption of limited partner OP Units and other | 13 | 291 | (13) | (291) | — | ||||||||||||||||||||||||
Distributions declared ($0.320 per common OP Unit) | — | (70,019) | — | (1,278) | (71,297) | ||||||||||||||||||||||||
Net income | — | 38,011 | — | 728 | 38,739 | ||||||||||||||||||||||||
Other comprehensive income | — | 1,497 | — | 26 | 1,523 | ||||||||||||||||||||||||
Balance as of June 30, 2021 | 218,826 | 3,101,324 | 3,496 | 58,564 | 3,159,888 | ||||||||||||||||||||||||
Issuance of general partner units | 2,000 | 53,735 | — | — | 53,735 | ||||||||||||||||||||||||
Issuance of limited partner OP Units in connection with acquisitions | — | — | 1,239 | 35,785 | 35,785 | ||||||||||||||||||||||||
Share-based award transactions, net | — | (368) | — | — | (368) | ||||||||||||||||||||||||
Redemption and cancellation of general partner OP Units | — | (12) | — | — | (12) | ||||||||||||||||||||||||
Redemption of limited partner OP Units and other | 13 | 313 | (13) | (313) | — | ||||||||||||||||||||||||
Distributions declared ($0.325 per common OP Unit) | — | (71,633) | — | (1,535) | (73,168) | ||||||||||||||||||||||||
Net income | — | 21,672 | — | 370 | 22,042 | ||||||||||||||||||||||||
Other comprehensive income | — | 1,407 | — | 28 | 1,435 | ||||||||||||||||||||||||
Balance as of September 30, 2021 | 220,839 | $ | 3,106,438 | 4,722 | $ | 92,899 | $ | 3,199,337 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 83,174 | $ | 25,001 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 212,332 | 211,843 | |||||||||
Share-based compensation expense | 5,034 | 7,135 | |||||||||
Income from unconsolidated joint venture | (1,198) | (1,223) | |||||||||
Distributions from unconsolidated joint venture | 2,345 | 2,455 | |||||||||
Impairment | 16,825 | — | |||||||||
Gain on sale of real estate, net | (32,896) | (1,991) | |||||||||
Loss on extinguishment of debt, net | — | 27,726 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables and other assets, net | (3,214) | 3,282 | |||||||||
Accounts payable and accrued liabilities | (8,755) | (11,787) | |||||||||
Security deposits, prepaid rent and other liabilities | (2,029) | 7,227 | |||||||||
Net cash provided by operating activities | 271,618 | 269,668 | |||||||||
Cash flows from investing activities: | |||||||||||
Investments in real estate | (147,303) | (52,553) | |||||||||
Development of real estate | (48,482) | (49,479) | |||||||||
Proceeds from the sale of real estate | 67,621 | 6,420 | |||||||||
Capital expenditures | (78,047) | (59,016) | |||||||||
Collection of real estate notes receivable | 15,405 | 709 | |||||||||
Advances on real estate notes receivable | (66,526) | (6,000) | |||||||||
Net cash used in investing activities | (257,332) | (159,919) | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings on unsecured revolving credit facility | 180,000 | 1,329,862 | |||||||||
Payments on unsecured revolving credit facility | (130,000) | (1,429,862) | |||||||||
Proceeds from unsecured senior notes | — | 793,568 | |||||||||
Payments from unsecured senior notes | — | (300,000) | |||||||||
Payments on secured mortgage loans | — | (114,060) | |||||||||
Deferred financing costs | — | (6,532) | |||||||||
Debt extinguishment costs | — | (25,938) | |||||||||
Proceeds from issuance of general partner units | 53,735 | 50,020 | |||||||||
Issuance of OP Units | — | 1,378 | |||||||||
Repurchase and cancellation of general partner units | (3,389) | (5,094) | |||||||||
Distributions paid to general partner | (210,047) | (205,880) | |||||||||
Distributions paid to limited partners and redeemable non-controlling interests | (3,886) | (3,581) | |||||||||
Net cash (used in) provided by financing activities | (113,587) | 83,881 | |||||||||
Net change in cash, cash equivalents and restricted cash | (99,301) | 193,630 | |||||||||
Cash, cash equivalents and restricted cash - beginning of period | 118,765 | 37,616 | |||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 19,464 | $ | 231,246 |
September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash and cash equivalents | $ | 12,836 | $ | 227,138 | |||||||
Restricted cash | 6,628 | 4,108 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 19,464 | $ | 231,246 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||
Type of Revenue | ||||||||||||||
Parking income | $ | 2,428 | $ | 2,187 | $ | 6,100 | $ | 5,725 | ||||||
Management fee income 1 | 1,426 | 723 | 2,864 | 1,381 | ||||||||||
Miscellaneous | 203 | 59 | 306 | 241 | ||||||||||
$ | 4,057 | $ | 2,969 | $ | 9,270 | $ | 7,347 |
Dollars in thousands | |||||
Shares of Legacy HTA Common Stock outstanding as of July 20, 2022 as adjusted(a) | |||||
Exchange ratio | 1.00 | ||||
Implied shares of Legacy HR Common Stock issued | 228,520,990 | ||||
Adjusted closing price of Legacy HR Common Stock on July 20, 2022(b) | $ | 24.37 | |||
Value of implied Legacy HR Common Stock issued | $ | 5,569,057 | |||
Fair value of Legacy HTA restricted stock awards attributable to pre-Merger services(c) | 7,406 | ||||
Consideration transferred | $ | 5,576,463 |
Dollars in thousands | |||||
ASSETS | |||||
Real estate investments | |||||
Land | $ | ||||
Buildings and | |||||
Lease | |||||
Financing lease right-of-use assets | |||||
8,844,747 | |||||
Assets held for sale, net | 707,442 | ||||
Investments in unconsolidated joint ventures | 67,892 | ||||
Cash and cash equivalents | 26,034 | ||||
Restricted cash | 1,123,647 | ||||
Operating lease right-of-use assets | 198,261 | ||||
Other assets, net (b) (c) | 209,163 | ||||
Total assets acquired | $ | ||||
Notes and bonds payable | $ | ||||
Liabilities of assets held for sale | 28,677 | ||||
Operating lease liabilities | 173,948 | ||||
Financing lease liabilities | 10,720 | ||||
Other liabilities | 203,210 | ||||
Total liabilities assumed | $ | ||||
Net identifiable assets acquired | $ | 5,541,761 | |||
Non-controlling interest | $ | 110,702 | |||
Goodwill | $ | 145,404 | |||
(a) The weighted average amortization period for the acquired lease intangible assets is 5.5 years. | |||||
(b) Includes $34.6 million of gross contractual accounts receivable, which approximates fair value, of which the Company preliminarily did not expect $12.3 million to be collected as of Closing Date. | |||||
(c) Includes $78.7 million of gross contractual real estate notes receivable, the fair value of which was $74.8 million, and the Company preliminarily expects to collect substantially all of the real estate notes receivable proceeds as of the Closing Date. |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Land | $ | 35,237 | $ | 2,817 | |||||||
Building and improvements | 135,881 | 45,610 | |||||||||
In place leases | 15,294 | 4,651 | |||||||||
Below market leases | (3,204) | (762) | |||||||||
Above market leases | 1,252 | 479 | |||||||||
ROU assets | (1,372) | (242) | |||||||||
Net real estate assets acquired | 183,088 | 52,553 | |||||||||
Other, net | 6,153 | 334 | |||||||||
Aggregate purchase price | $ | 189,241 | $ | 52,887 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
Dollars in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||
Total revenues | $ | 352,744 | $ | 332,465 | $ | 1,054,809 | $ | 982,192 | ||||||
Net income | $ | 115,496 | $ | (14,930) | $ | 160,120 | $ | (79,754) |
Dollars in thousands | DATE ACQUIRED | PURCHASE PRICE | CASH CONSIDERATION 1 | REAL ESTATE 2 | OTHER 3 | SQUARE FOOTAGE | ||||||||||||||||||||
Dallas, TX | 2/11/22 | $ | 8,175 | $ | 8,185 | $ | 8,202 | $ | (17) | 18,000 | ||||||||||||||||
San Francisco, CA 4 | 3/7/22 | 114,000 | 112,986 | 108,687 | 4,299 | 166,396 | ||||||||||||||||||||
Q1 2022 subtotal | 122,175 | 121,171 | 116,889 | 4,282 | 184,396 | |||||||||||||||||||||
Atlanta, GA | 4/7/22 | 6,912 | 7,054 | 7,178 | (124) | 21,535 | ||||||||||||||||||||
Denver, CO | 4/13/22 | 6,320 | 5,254 | 5,269 | (15) | 12,207 | ||||||||||||||||||||
Colorado Springs, CO 5 | 4/13/22 | 13,680 | 13,686 | 13,701 | (15) | 25,800 | ||||||||||||||||||||
Seattle, WA | 4/28/22 | 8,350 | 8,334 | 8,370 | (36) | 13,256 | ||||||||||||||||||||
Houston, TX | 4/28/22 | 36,250 | 36,299 | 36,816 | (517) | 76,781 | ||||||||||||||||||||
Los Angeles, CA | 4/29/22 | 35,000 | 35,242 | 25,400 | 9,842 | 34,282 | ||||||||||||||||||||
Oklahoma City, OK | 4/29/22 | 11,100 | 11,259 | 11,334 | (75) | 34,944 | ||||||||||||||||||||
Raleigh, NC 4 | 5/31/22 | 27,500 | 26,710 | 27,127 | (417) | 85,113 | ||||||||||||||||||||
Tampa, FL 5 | 6/9/22 | 18,650 | 18,619 | 18,212 | 407 | 55,788 | ||||||||||||||||||||
Q2 2022 subtotal | 163,762 | 162,457 | 153,407 | 9,050 | 359,706 | |||||||||||||||||||||
Seattle, WA | 8/1/22 | 4,850 | 4,806 | 4,882 | (76) | 10,593 | ||||||||||||||||||||
Raleigh, NC | 8/9/22 | 3,783 | 3,878 | 3,932 | (54) | 11,345 | ||||||||||||||||||||
Jacksonville, FL | 8/9/22 | 18,195 | 18,508 | 18,583 | (75) | 34,133 | ||||||||||||||||||||
Atlanta, GA | 8/10/22 | 11,800 | 11,525 | 12,038 | (513) | 43,496 | ||||||||||||||||||||
Denver, CO | 8/11/22 | 14,800 | 13,902 | 13,918 | (16) | 34,785 | ||||||||||||||||||||
Raleigh, NC | 8/18/22 | 11,375 | 10,670 | 10,547 | 123 | 31,318 | ||||||||||||||||||||
Nashville, TN | 9/15/22 | 21,000 | 20,764 | 20,572 | 192 | 61,932 | ||||||||||||||||||||
Austin, TX | 9/29/22 | 5,450 | 5,449 | 5,572 | (123) | 15,000 | ||||||||||||||||||||
Q3 2022 subtotal | 91,253 | 89,502 | 90,044 | (542) | 242,602 | |||||||||||||||||||||
Total real estate acquisitions | $ | 377,190 | $ | 373,130 | $ | 360,340 | $ | 12,790 | 786,704 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Acquired intangible assets | 6.2 | 5.1 | |||||||||
Acquired intangible liabilities | 9.3 | 3.4 |
Dollars in thousands | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | |||||||||||||||||||||||
Jacksonville, FL | 10/12/22 | $ | 3,600 | 6,200 | ||||||||||||||||||||||
Dollars in thousands | DATE ACQUIRED | PURCHASE PRICE | CASH CONSIDERATION 1 | REAL ESTATE | OTHER 2 | SQUARE FOOTAGE | COMPANY OWNERSHIP % | ||||||||||||||||||||||
San Francisco, CA 3 | 3/7/22 | $ | 67,175 | $ | 66,789 | $ | 65,179 | $ | 1,610 | 110,865 | 50 | % | |||||||||||||||||
Los Angeles, CA 4 | 3/7/22 | 33,800 | 32,384 | 32,390 | (6) | 103,259 | 50 | % | |||||||||||||||||||||
Total joint venture acquisitions | $ | 100,975 | $ | 99,173 | $ | 97,569 | $ | 1,604 | 214,124 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | ||||||||||||||||
Dollars in thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Investments in unconsolidated joint ventures, beginning of period | $ | 210,781 | $ | 117,935 | $ | 161,942 | $ | 73,137 | |||||||||
New investments during the period 1 | 117,880 | 4,593 | 167,479 | 49,612 | |||||||||||||
Equity loss recognized during the period | (124) | (183) | (776) | (404) | |||||||||||||
Owner distributions | (785) | — | (893) | — | |||||||||||||
Investments in unconsolidated joint ventures, end of period 1 | $ | 327,752 | $ | 122,345 | $ | 327,752 | $ | 122,345 |
Dollars in thousands | DATE DISPOSED | SALE PRICE | CLOSING ADJUSTMENTS | NET PROCEEDS | NET REAL ESTATE INVESTMENT | OTHER (INCLUDING RECEIVABLES) 1 | GAIN/(IMPAIRMENT) | SQUARE FOOTAGE | ||||||||||||||||||
Loveland, CO 2 | 2/24/22 | $ | 84,950 | $ | (45) | $ | 84,905 | $ | 40,095 | $ | 4 | $ | 44,806 | 150,291 | ||||||||||||
San Antonio, TX 2 | 4/15/22 | 25,500 | (2,272) | 23,228 | 14,381 | 284 | 8,563 | 201,523 | ||||||||||||||||||
GA, FL, PA 3, 8 | 7/29/22 | 133,100 | (8,109) | 124,991 | 124,991 | — | — | 316,739 | ||||||||||||||||||
GA, FL, TX 5, 8 | 8/4/22 | 160,917 | (5,893) | 155,024 | 151,819 | 3,205 | — | 343,545 | ||||||||||||||||||
Los Angeles, CA 3, 6, 8 | 8/5/22 | 134,845 | (3,102) | 131,743 | 131,332 | 411 | — | 283,780 | ||||||||||||||||||
Dallas, TX 5, 7, 8 | 8/30/22 | 114,290 | (682) | 113,608 | 113,608 | — | — | 189,385 | ||||||||||||||||||
Indianapolis, IN 4, 9 | 8/31/22 | 238,845 | (5,846) | 232,999 | 84,767 | 4,324 | 143,908 | 506,406 | ||||||||||||||||||
Total dispositions | $ | 892,447 | $ | (25,949) | $ | 866,498 | $ | 660,993 | $ | 8,228 | $ | 197,277 | 1,991,669 |
Dollars in thousands | DATE DISPOSED | SALE PRICE | SQUARE FOOTAGE | ||||||||
Dallas, TX 1, 2 | 10/4/22 | $ | 104,025 | 291,328 | |||||||
Houston, TX 2 | 10/21/22 | 32,000 | 134,910 | ||||||||
Total dispositions | $ | 136,025 | 426,238 |
Dollars in thousands | September 30, 2022 | December 31, 2021 | ||||||||||||
Balance Sheet data: | ||||||||||||||
Land | $ | 10,594 | $ | — | ||||||||||
Building and improvements | 199,821 | — | ||||||||||||
Lease intangibles | 11,389 | — | ||||||||||||
Personal property | 211 | — | ||||||||||||
Financing lease right-of-use assets | 307 | — | ||||||||||||
222,322 | — | |||||||||||||
Accumulated depreciation | (47,051) | — | ||||||||||||
Real estate assets held for sale, net | 175,271 | — | ||||||||||||
Operating lease right-of-use assets | 1,193 | — | ||||||||||||
Other assets, net | 8,610 | 57 | ||||||||||||
Assets held for sale, net | $ | 185,074 | $ | 57 | ||||||||||
Accounts payable and accrued liabilities | $ | 3,768 | $ | 169 | ||||||||||
Operating lease liabilities | $ | 864 | $ | — | ||||||||||
Financing lease liabilities | $ | 2,427 | $ | — | ||||||||||
Other liabilities | 3,585 | 125 | ||||||||||||
Liabilities of assets held for sale | $ | 10,644 | $ | 294 |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Balance | Weighted Average Remaining Amortization in Years | Balance | Weighted Average Remaining Amortization in Years | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
In place leases | $ | 366,987 | 9.5 | $ | 483,779 | 9.7 | |||||||||||||||||
Tenant relationships | 139,023 | 10.6 | 144,842 | 10.0 | |||||||||||||||||||
Above market leases | 20,027 | 6.3 | 37,876 | 5.8 | |||||||||||||||||||
526,037 | 666,497 | ||||||||||||||||||||||
Accumulated amortization | (311,014) | (427,937) | |||||||||||||||||||||
Total | $ | 215,023 | 9.4 | $ | 238,560 | 9.6 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Below market leases | $ | 64,643 | 14.5 | $ | 61,896 | 14.6 | |||||||||||||||||
Accumulated amortization | (33,170) | (29,357) | |||||||||||||||||||||
Total | $ | 31,473 | 14.5 | $ | 32,539 | 14.6 | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Amortization recorded against rental income related to above and (below) market leases | $ | (694) | $ | (712) | $ | (1,927) | $ | (3,431) | |||||||||||||||
Amortization expense related to in place leases and tenant relationships | 11,123 | 13,230 | 34,350 | 42,603 | |||||||||||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
Tenant receivables, net | $ | 7,460 | $ | 17,717 | |||||||
Other receivables, net | 6,106 | 6,243 | |||||||||
Deferred financing costs, net | 1,293 | 2,586 | |||||||||
Deferred leasing costs, net | 42,678 | 43,234 | |||||||||
Straight-line rent receivables, net | 138,162 | 128,070 | |||||||||
Prepaid expenses, deposits, equipment and other, net | 51,240 | 46,114 | |||||||||
Real estate notes receivable, net | 53,111 | — | |||||||||
Finance ROU asset, net | 14,927 | 7,764 | |||||||||
Total | $ | 314,977 | $ | 251,728 |
Dollars in thousands | OPERATING | |||||||
2022 | $ | 243,946 | ||||||
2023 | 937,733 | |||||||
2024 | 816,000 | |||||||
2025 | 702,251 | |||||||
2026 | 605,417 | |||||||
2027 and thereafter | 2,242,792 | |||||||
$ | 5,548,139 |
Dollars in thousands | OPERATING | FINANCING | ||||||
2022 | $ | 3,665 | $ | 503 | ||||
2023 | 15,606 | 2,139 | ||||||
2024 | 15,193 | 2,182 | ||||||
2025 | 14,715 | 2,218 | ||||||
2026 | 14,735 | 2,255 | ||||||
2027 and thereafter | 894,018 | 398,092 | ||||||
Total undiscounted lease payments | 957,932 | 407,389 | ||||||
Discount | (689,092) | (335,011) | ||||||
Lease liabilities | $ | 268,840 | $ | 72,378 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Amortization expense related to deferred leasing costs | $ | 2,190 | $ | 2,389 | $ | 6,617 | $ | 6,398 | |||||||||||||||
Interest expense related to deferred financing costs | 431 | 431 | 1,293 | 1,293 |
Year | Operating Leases | Finance Leases | ||||||||||||
2021 | $ | 2,658 | $ | 138 | ||||||||||
2022 | 10,797 | 558 | ||||||||||||
2023 | 10,934 | 563 | ||||||||||||
2024 | 10,277 | 568 | ||||||||||||
2025 | 9,764 | 573 | ||||||||||||
2026 | 9,766 | 583 | ||||||||||||
Thereafter | 606,467 | 35,906 | ||||||||||||
Total undiscounted lease payments | $ | 660,663 | $ | 38,889 | ||||||||||
Less: Interest | (465,548) | (23,434) | ||||||||||||
Present value of lease liabilities | $ | 195,115 | $ | 15,455 |
Year | Amount | |||||||
2021 | $ | 140,940 | ||||||
2022 | 550,592 | |||||||
2023 | 496,597 | |||||||
2024 | 439,632 | |||||||
2025 | 383,815 | |||||||
2026 | 334,464 | |||||||
Thereafter | 1,220,794 | |||||||
Total | $ | 3,566,834 |
THREE MONTHS ENDED September 30, | NINE MONTHS ENDED September 30, | |||||||||||||
Dollars in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||
Operating lease cost | ||||||||||||||
Operating lease expense | $ | 4,204 | $ | 1,196 | $ | 6,613 | $ | 3,555 | ||||||
Variable lease expense | 1,061 | 1,016 | 3,123 | 2,883 | ||||||||||
Finance lease cost | ||||||||||||||
Amortization of right-of-use assets | 381 | 90 | 884 | 267 | ||||||||||
Interest on lease liabilities | 861 | 255 | 1,913 | 748 | ||||||||||
Total lease expense | $ | 6,507 | $ | 2,557 | $ | 12,533 | $ | 7,453 | ||||||
Other information | ||||||||||||||
Operating cash flows outflows related to operating leases | $ | 3,847 | $ | 1,424 | $ | 8,443 | $ | 5,855 | ||||||
Operating cash flows outflows related to financing leases | $ | 476 | $ | 151 | $ | 1,262 | $ | 678 | ||||||
Financing cash flows outflows related to financing leases | $ | 3 | $ | 6 | $ | 3 | $ | 162 | ||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 9,874 | $ | 1,420 | $ | 50,463 | $ | 1,420 | ||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 198,261 | $ | 8,298 | $ | 198,261 | $ | 8,298 | ||||||
Weighted-average years remaining lease term (excluding renewal options) - operating leases | 50.2 | 47.8 | ||||||||||||
Weighted-average years remaining lease term (excluding renewal options) - finance leases | 60.1 | 63.2 | ||||||||||||
Weighted-average discount rate - operating leases | 5.7 | % | 5.6 | % | ||||||||||
Weighted-average discount rate - finance leases | 5.0 | % | 5.4 | % |
Dollars in thousands | September 30, 2022 | December 31, 2021 | ||||||||||||
Above-market intangible assets, net | $ | 86,410 | $ | 4,966 | ||||||||||
Prepaid assets | 85,053 | 58,618 | ||||||||||||
Real estate notes receivable, net 1 | 79,036 | — | ||||||||||||
Straight-line rent receivables | 78,038 | 70,784 | ||||||||||||
Accounts receivable, net | 36,103 | 14,072 | ||||||||||||
Additional long-lived assets, net | 21,722 | 20,048 | ||||||||||||
Interest rate swap assets | 16,136 | — | ||||||||||||
Ground lease modification, net | 8,170 | 8,511 | ||||||||||||
Other receivables, net | 7,258 | — | ||||||||||||
Debt issuance costs, net | 6,504 | 1,813 | ||||||||||||
Project costs | 4,001 | 5,129 | ||||||||||||
Net investment in lease | 1,828 | — | ||||||||||||
Customer relationship intangible assets, net | 1,134 | 1,174 | ||||||||||||
Other | 6,842 | 558 | ||||||||||||
$ | 438,235 | $ | 185,673 |
Dollars in thousands | September 30, 2022 | December 31, 2021 | ||||||||||||
Accrued property taxes | $ | 86,192 | $ | 35,295 | ||||||||||
Accounts payable and capital expenditures | 61,461 | 17,036 | ||||||||||||
Accrued interest | 24,959 | 12,060 | ||||||||||||
Accrued income and franchise taxes | 2,685 | 983 | ||||||||||||
Retainage accrued on construction invoices | 1,304 | 2,215 | ||||||||||||
Other operating accruals | 54,417 | 18,519 | ||||||||||||
$ | 231,018 | $ | 86,108 |
Dollars in thousands | September 30, 2022 | December 31, 2021 | ||||||||||||
Below-market intangible liabilities, net | $ | 113,118 | $ | 4,931 | ||||||||||
Deferred revenue | 60,675 | 45,130 | ||||||||||||
Security deposits | 28,299 | 11,116 | ||||||||||||
Interest rate swap liability | — | 5,917 | ||||||||||||
Other | 1,306 | 293 | ||||||||||||
$ | 203,398 | $ | 67,387 |
MATURITY DATES 1 | BALANCE 2 AS OF | EFFECTIVE INTEREST RATE as of 9/30/2022 | ||||||||||||
Dollars in thousands | 9/30/2022 | 12/31/2021 | ||||||||||||
$1.5 billion Unsecured Credit Facility 3 | 10/27 | $ | 190,600 | $ | — | 3.99 | % | |||||||
$700 million Unsecured Credit Facility 3 | 5/23 | — | 210,000 | — | % | |||||||||
$1.125 billion Asset Sale Term Loan 4 | 7/24 | 421,919 | — | 4.07 | % | |||||||||
$350 million Unsecured Term Loan 3 | 7/25 | 348,735 | — | 4.10 | % | |||||||||
$200 million Unsecured Term Loan 4 | 5/26 | 199,611 | 199,460 | 3.51 | % | |||||||||
$300 million Unsecured Term Loan 4 5 | 10/26 | 299,930 | — | 2.47 | % | |||||||||
$150 million Unsecured Term Loan 5 | 5/26 | 149,458 | 149,376 | 3.32 | % | |||||||||
$200 million Unsecured Term Loan 4 5 | 7/27 | 199,328 | — | 2.27 | % | |||||||||
$300 million Unsecured Term Loan 3 | 1/28 | 297,764 | — | 3.56 | % | |||||||||
Senior Notes due 2025 | 5/25 | 249,025 | 249,040 | 4.12 | % | |||||||||
Senior Notes due 2026 4 | 8/26 | 569,786 | — | 4.94 | % | |||||||||
Senior Notes due 2027 4 | 7/27 | 478,541 | — | 4.76 | % | |||||||||
Senior Notes due 2028 | 1/28 | 296,711 | 296,612 | 3.85 | % | |||||||||
Senior Notes due 2030 4 | 2/30 | 562,974 | — | 5.30 | % | |||||||||
Senior Notes due 2030 | 3/30 | 296,787 | 296,813 | 2.72 | % | |||||||||
Senior Notes due 2031 4 | 3/31 | 628,617 | — | 5.13 | % | |||||||||
Senior Notes due 2031 | 3/31 | 295,424 | 295,374 | 2.25 | % | |||||||||
Mortgage notes payable | 8/23-12/26 | 84,929 | 104,650 | 3.97 | % | |||||||||
$ | 5,570,139 | $ | 1,801,325 |
September 30, 2021 | December 31, 2020 | ||||||||||
Unsecured revolving credit facility | $ | 50,000 | $ | — | |||||||
Unsecured term loans | 500,000 | 500,000 | |||||||||
Unsecured senior notes | 2,550,000 | 2,550,000 | |||||||||
Fixed rate mortgages | — | — | |||||||||
$ | 3,100,000 | $ | 3,050,000 | ||||||||
Deferred financing costs, net | (16,921) | (19,157) | |||||||||
Premium, net | (3,889) | (3,844) | |||||||||
Total | $ | 3,079,190 | $ | 3,026,999 |
Series of Old HR Notes | Tenders and Consents Received as of the Expiration Date | Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | |||||||||
3.875 | % | Senior Notes due 2025 | $235,016,000 | 94.01 | % | ||||||
3.625 | % | Senior Notes due 2028 | $290,246,000 | 96.75 | % | ||||||
2.400 | % | Senior Notes due 2030 | $297,507,000 | 99.17 | % | ||||||
2.050 | % | Senior Notes due 2031 | $298,858,000 | 99.62 | % |
COUPON | PRINCIPAL OUTSTANDING AS OF | |||||||||||||
Dollars in thousands | FACE VALUE | 9/30/2022 | 12/31/2021 | |||||||||||
Senior Notes due 2026 | 3.50% | $ | 600,000 | $ | 600,000 | $ | — | |||||||
Senior Notes due 2027 | 3.75% | 500,000 | 500,000 | — | ||||||||||
Senior Notes due 2030 | 3.10% | 650,000 | 650,000 | — | ||||||||||
Senior Notes due 2031 | 2.00% | 800,000 | 800,000 | — | ||||||||||
$ | 2,550,000 | $ | 2,550,000 | $ | — |
Year | Amount | |||||||
2021 | $ | — | ||||||
2022 | 50,000 | |||||||
2023 | 300,000 | |||||||
2024 | 200,000 | |||||||
2025 | — | |||||||
Thereafter | 2,550,000 | |||||||
Total | $ | 3,100,000 |
Year | Amount | |||||||
2021 | $ | 831 | ||||||
2022 | 2,985 | |||||||
2023 | 2,489 | |||||||
2024 | 2,096 | |||||||
2025 | 2,084 | |||||||
Thereafter | 6,436 | |||||||
Total | $ | 16,921 |
EXPIRATION DATE | AMOUNT | WEIGHTED AVERAGE RATE | ||||||
December 16, 2022 | 75,000 | 2.37 | % | |||||
January 31, 2023 | $ | 300,000 | 1.42 | % | ||||
January 15, 2024 1 | 200,000 | 1.21 | % | |||||
May 1, 2026 1 | 100,000 | 2.15 | % | |||||
$ | 675,000 | 1.57 | % |
BALANCE SHEET LOCATION | FAIR VALUE | ||||||||||
Derivatives designated as hedging instruments | |||||||||||
Other assets | $ | 16,136 | |||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Fair Value at: | Fair Value at: | |||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | Balance Sheet Location | September 30, 2021 | December 31, 2020 | Balance Sheet Location | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||
Interest rate swaps | Receivables and other assets | $ | — | $ | — | Derivative financial instruments | $ | 9,377 | $ | 14,957 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Effect of Derivative Instruments | Location in Statement of Operations and Comprehensive Income (Loss) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Gain (loss) recognized in OCI | Change in unrealized losses on cash flow hedges | $ | (273) | $ | 521 | $ | 740 | $ | (25,932) | |||||||||||||||||||||||
Gain (loss) reclassified from accumulated OCI into income | Interest expense | (1,708) | (1,533) | (5,010) | (2,260) |
GAIN RECOGNIZED IN AOCI ON DERIVATIVE three months ended September 30, | LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended September 30, | ||||||||||||||||
In thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest rate swaps | $ | (6,083) | $ | (36) | Interest expense | $ | 614 | $ | 982 | ||||||||
Settled treasury hedges | — | — | Interest expense | 107 | 107 | ||||||||||||
Settled interest rate swaps | — | — | Interest expense | 42 | 42 | ||||||||||||
$ | (6,083) | $ | (36) | Total interest expense | $ | 763 | $ | 1,131 |
GAIN RECOGNIZED IN AOCI ON DERIVATIVE nine months ended September 30, | LOSS RECLASSIFIED FROM AOCI INTO INCOME nine months ended September 30, | ||||||||||||||||
In thousands | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest rate swaps | $ | (12,905) | $ | (2,079) | Interest expense | $ | 2,226 | $ | 2,894 | ||||||||
Settled treasury hedges | — | — | Interest expense | 320 | 320 | ||||||||||||
Settled interest rate swaps | — | — | Interest expense | 126 | 126 | ||||||||||||
$ | (12,905) | $ | (2,079) | Total interest expense | $ | 2,672 | $ | 3,340 |
NINE MONTHS ENDED SEPTEMBER 30, 2022 | TWELVE MONTHS ENDED DECEMBER 31, 2021 | |||||||
Balance, beginning of period | 150,457,433 | 139,487,375 | ||||||
Issuance of common stock | 229,615,152 | 10,899,301 | ||||||
Non-vested share-based awards, net of withheld shares | 499,705 | 70,757 | ||||||
Balance, end of period | 380,572,290 | 150,457,433 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
Dollars in thousands, except per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||
Weighted average common shares outstanding | 330,788,997 | 145,594,127 | 211,740,767 | 143,305,737 | ||||||||||
Non-vested shares | (1,983,742) | (1,776,508) | (1,933,957) | (1,784,544) | ||||||||||
Weighted average common shares outstanding - basic | 328,805,255 | 143,817,619 | 209,806,810 | 141,521,193 | ||||||||||
Weighted average common shares outstanding - basic | 328,805,255 | 143,817,619 | 209,806,810 | 141,521,193 | ||||||||||
Dilutive effect of forward equity shares | — | — | — | 14,036 | ||||||||||
Dilutive effect of OP Units | 3,167,668 | — | 1,067,493 | — | ||||||||||
Dilutive effect of employee stock purchase plan | 58,461 | — | 69,687 | 78,200 | ||||||||||
Weighted average common shares outstanding - diluted | 332,031,384 | 143,817,619 | 210,943,990 | 141,613,429 | ||||||||||
Net Income (loss) attributable to common stockholders | $ | 28,304 | $ | (2,066) | $ | 76,661 | $ | 45,052 | ||||||
Dividends paid on nonvested share-based awards | (610) | (537) | (1,817) | (1,617) | ||||||||||
Net income (loss) applicable to common stockholders- basic | $ | 27,694 | $ | (2,603) | $ | 74,844 | $ | 43,435 | ||||||
Net income attributable to OP units | 312 | — | 312 | — | ||||||||||
Net income (loss) applicable to common stockholders - diluted | $ | 28,006 | $ | (2,603) | $ | 75,156 | $ | 43,435 | ||||||
Basic earnings per common share - net income | $ | 0.08 | $ | (0.02) | $ | 0.36 | $ | 0.31 | ||||||
Diluted earnings per common share - net income | $ | 0.08 | $ | (0.02) | $ | 0.35 | $ | 0.31 |
September 30, 2021 | September 30, 2020 | THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||||||||||||||
Restricted Common Stock | Weighted Average Grant Date Fair Value | Restricted Common Stock | Weighted Average Grant Date Fair Value | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Beginning balance | 436,399 | $ | 28.27 | 600,987 | $ | 28.04 | |||||||||||||||||||||||||||||||
Share-based awards, beginning of period | Share-based awards, beginning of period | 1,941,709 | 1,778,308 | 1,562,028 | 1,766,061 | ||||||||||||||||||||||||||||||||
Granted | Granted | 499,567 | 27.63 | 273,503 | 29.83 | Granted | 71,852 | — | 513,876 | 203,701 | |||||||||||||||||||||||||||
Vested | Vested | (295,494) | 27.48 | (420,863) | 28.95 | Vested | (7,434) | — | (68,481) | (191,454) | |||||||||||||||||||||||||||
Forfeited | Forfeited | (152,087) | 27.31 | (11,398) | 28.88 | Forfeited | (4,130) | (2,957) | (5,426) | (2,957) | |||||||||||||||||||||||||||
Ending balance | 488,385 | $ | 28.39 | 442,229 | $ | 28.26 | |||||||||||||||||||||||||||||||
Share-based awards, end of period | Share-based awards, end of period | 2,001,997 | 1,775,351 | 2,001,997 | 1,775,351 |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||
Level 2 - Assets: | ||||||||||||||||||||||||||
Real estate notes receivable, net | $ | 53,111 | $ | 53,083 | $ | — | $ | — | ||||||||||||||||||
Derivative financial instruments | — | — | — | — | ||||||||||||||||||||||
Level 2 - Liabilities: | ||||||||||||||||||||||||||
Derivative financial instruments | $ | 9,377 | $ | 9,377 | $ | 14,957 | $ | 14,957 | ||||||||||||||||||
Debt | 3,079,190 | 3,211,226 | 3,026,999 | 3,258,573 |
THREE MONTHS ENDED MARCH 31, | ||||||||||||||||||||||||||||
30.0 | ||||||||||||||||||||||||||||
Dividend assumption | ||||||||||||||||||||||||||||
Expected term | ||||||||||||||||||||||||||||
1.02 | % | |||||||||||||||||||||||||||
$31.68 | ||||||||||||||||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
Restricted Stock Units | Weighted Average Grant Date Fair Value | Restricted Stock Units | Weighted Average Grant Date Fair Value | |||||||||||
Non-vested, beginning of period | 294,932 | — | — | — | ||||||||||
Granted | — | — | 294,932 | $ | 33.04 | |||||||||
Vested | — | — | — | — | ||||||||||
Non-vested as of September 30, 2022 | 294,932 | 294,932 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Outstanding and exercisable, beginning of period | 405,534 | 389,414 | 348,514 | 341,647 | ||||||||||
Granted | — | — | 255,960 | 253,200 | ||||||||||
Exercised | (4,576) | (5,323) | (17,094) | (24,300) | ||||||||||
Forfeited | (37,628) | (18,961) | (83,417) | (60,995) | ||||||||||
Expired | — | — | (140,633) | (144,422) | ||||||||||
Outstanding and exercisable, end of period | 363,330 | 365,130 | 363,330 | 365,130 |
September 30, 2022 | December 31, 2021 | |||||||||||||
Dollars in millions | CARRYING VALUE | FAIR VALUE | CARRYING VALUE | FAIR VALUE | ||||||||||
Notes and bonds payable 1 | $ | 5,570.1 | $ | 5,321.0 | $ | 1,801.3 | $ | 1,797.4 | ||||||
Real estate notes receivable 1 | $ | 79.0 | $ | 79.0 | $ | — | $ | — | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Net loss (income) attributable to non-controlling interests | (370) | 105 | (1,461) | (438) | |||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 21,672 | $ | (6,827) | $ | 81,713 | $ | 24,563 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares outstanding - basic | 218,820 | 218,549 | 218,798 | 217,911 | |||||||||||||||||||
Dilutive shares - OP Units convertible into common stock | 3,991 | — | 3,672 | 3,610 | |||||||||||||||||||
Adjusted weighted average shares outstanding - diluted | 222,811 | 218,549 | 222,470 | 221,521 | |||||||||||||||||||
Earnings per common share - basic | |||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
Earnings per common share - diluted | |||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Net income attributable to non-controlling interests | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average OP Units outstanding - basic | 222,811 | 222,101 | 222,470 | 221,521 | |||||||||||||||||||
Dilutive units - OP Units convertible into common units | — | — | — | — | |||||||||||||||||||
Adjusted weighted average units outstanding - diluted | 222,811 | 222,101 | 222,470 | 221,521 | |||||||||||||||||||
Earnings per common unit - basic: | |||||||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
Earnings per common unit - diluted: | |||||||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Interest paid, net of capitalized interest | $ | 79,119 | $ | 81,889 | |||||||
Cash paid for operating leases | 10,968 | 8,922 | |||||||||
Supplemental Disclosure of Noncash Investing and Financing Activities: | |||||||||||
Accrued capital expenditures | $ | 15,600 | $ | 13,139 | |||||||
Dividend distributions declared, but not paid | 73,307 | 71,072 | |||||||||
Issuance of OP Units in HTALP in connection with acquisitions | 35,785 | — | |||||||||
Redemption of non-controlling interest | 859 | 8,685 | |||||||||
ROU assets obtained in exchange for lease obligations | 7,353 | 696 |
Dollars in thousands | ASSOCIATED HEALTH SYSTEM/TENANCY 1 | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | MILES TO CAMPUS | ||||||||||||
Dallas, TX | Texas Health Resources | 2/11/22 | $ | 8,175 | 18,000 | 0.19 | |||||||||||
San Francisco, CA 2 | Kaiser/Sutter Health | 3/7/22 | 114,000 | 166,396 | 0.90 to 3.30 | ||||||||||||
Q1 2022 subtotal | 122,175 | 184,396 | |||||||||||||||
Atlanta, GA | Wellstar Health | 4/7/22 | 6,912 | 21,535 | 0.00 | ||||||||||||
Denver, CO | Centura Health | 4/13/22 | 6,320 | 12,207 | 2.40 | ||||||||||||
Colorado Springs, CO 3 | Centura Health | 4/13/22 | 13,680 | 25,800 | 0.80 to 1.70 | ||||||||||||
Seattle, WA | UW Medicine | 4/28/22 | 8,350 | 13,256 | 0.05 | ||||||||||||
Houston, TX | CommonSpirit | 4/28/22 | 36,250 | 76,781 | 1.70 | ||||||||||||
Los Angeles, CA | Cedars-Sinai Health Systems | 4/29/22 | 35,000 | 34,282 | 0.11 | ||||||||||||
Oklahoma City, OK | Mercy Health | 4/29/22 | 11,100 | 34,944 | 0.18 | ||||||||||||
Raleigh, NC 2 | WakeMed/None | 5/31/22 | 27,500 | 85,113 | 0.25 to 12.30 | ||||||||||||
Tampa, FL 3 | BayCare Health | 6/9/22 | 18,650 | 55,788 | 0.23 | ||||||||||||
Q2 2022 subtotal | 163,762 | 359,706 | |||||||||||||||
Seattle, WA | EvergreenHealth | 8/1/22 | 4,850 | 10,593 | 0.24 | ||||||||||||
Raleigh, NC | WakeMed | 8/9/22 | 3,783 | 11,345 | 0.24 | ||||||||||||
Jacksonville, FL | Ascension | 8/9/22 | 18,195 | 34,133 | 0.03 | ||||||||||||
Atlanta, GA | Wellstar | 8/10/22 | 11,800 | 43,496 | 0.11 | ||||||||||||
Denver, CO | Centura | 8/11/22 | 14,800 | 34,785 | 2.10 | ||||||||||||
Raleigh, NC | Duke | 8/18/22 | 11,375 | 31,318 | 0.19 | ||||||||||||
Nashville, TN | Ascension | 9/15/22 | 21,000 | 61,932 | 0.80 | ||||||||||||
Austin, TX | HCA | 9/29/22 | 5,450 | 15,000 | 0.03 | ||||||||||||
Q3 2022 subtotal | 91,253 | 242,602 | |||||||||||||||
Total real estate acquisitions | $ | 377,190 | 786,704 | ||||||||||||||
Dollars in thousands | ASSOCIATED HEALTH SYSTEM/TENANCY 1 | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | MILES TO CAMPUS | ||||||||||||
Jacksonville, FL | Ascension | 10/12/22 | $ | 3,600 | 6,200 | 0.10 | |||||||||||
Dollars in thousands | ASSOCIATED HEALTH SYSTEM/TENANCY 1 | DATE ACQUIRED | PURCHASE PRICE | SQUARE FOOTAGE | MILES TO CAMPUS | COMPANY OWNERSHIP % | ||||||||||||||
San Francisco, CA 2 | MarinHealth/Kaiser | 3/7/22 | $ | 67,175 | 110,865 | 0.00 to 3.30 | 50 | % | ||||||||||||
Los Angeles, CA 3 | Valley Presbyterian Health | 3/7/22 | 33,800 | 103,259 | 1.30 | 50 | % | |||||||||||||
Total joint venture acquisitions | $ | 100,975 | 214,124 |
Dollars in thousands | Date Disposed | Sales Price | Square Footage | |||||||||||
Loveland, CO 1 | 2/24/22 | $ | 84,950 | 150,291 | ||||||||||
San Antonio, TX 1 | 4/15/22 | 25,500 | 201,523 | |||||||||||
GA, FL, PA 2 | 7/29/22 | 133,100 | 316,739 | |||||||||||
GA, FL, TX 4 | 8/4/22 | 160,917 | 343,545 | |||||||||||
Los Angeles, CA 2, 5 | 8/5/22 | 134,845 | 283,780 | |||||||||||
Dallas, TX 4, 6 | 8/30/22 | 114,290 | 189,385 | |||||||||||
Indianapolis, IN 3 | 8/31/22 | 238,845 | 506,406 | |||||||||||
Total dispositions | $ | 892,447 | 1,991,669 |
Dollars in thousands | DATE DISPOSED | SALE PRICE | SQUARE FOOTAGE | ||||||||
Dallas, TX 1, 2 | 10/4/22 | $ | 104,025 | 291,328 | |||||||
Houston, TX 2 | 10/21/22 | 32,000 | 134,910 | ||||||||
Total dispositions | $ | 136,025 | 426,238 |
EXPIRATION DATE | AMOUNT | WEIGHTED AVERAGE RATE | ||||||
January 31, 2023 | $ | 300,000 | 1.42 | % | ||||
December 16, 2022 | 75,000 | 2.37 | % | |||||
January 15, 2024 1 | 200,000 | 1.21 | % | |||||
May 1, 2026 1 | 100,000 | 2.15 | % | |||||
$ | 675,000 | 1.57 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | % Change | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | 189,832 | $ | 187,258 | $ | 2,574 | 1.4 | % | |||||||||||||||
Interest and other operating income | 1,430 | 68 | 1,362 | NM | |||||||||||||||||||
Total revenues | 191,262 | 187,326 | 3,936 | 2.1 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Rental | 59,568 | 57,248 | 2,320 | 4.1 | |||||||||||||||||||
General and administrative | 10,765 | 10,670 | 95 | 0.9 | |||||||||||||||||||
Transaction | 137 | 125 | 12 | 9.6 | |||||||||||||||||||
Depreciation and amortization | 76,056 | 75,892 | 164 | 0.2 | |||||||||||||||||||
Interest expense | 23,331 | 23,136 | 195 | 0.8 | |||||||||||||||||||
Total expenses | 169,857 | 167,071 | 2,786 | 1.7 | |||||||||||||||||||
Gain on sale of real estate, net | 143 | — | 143 | NM | |||||||||||||||||||
Loss on extinguishment of debt, net | — | (27,726) | 27,726 | 100.0 | |||||||||||||||||||
Income from unconsolidated joint venture | 400 | 422 | (22) | (5.2) | |||||||||||||||||||
Other income | 94 | 117 | (23) | (19.7) | |||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 28,974 | NM | ||||||||||||||||
NOI | $ | 131,694 | $ | 130,078 | $ | 1,616 | 1.2 | % | |||||||||||||||
Same-Property Cash NOI | $ | 115,158 | $ | 112,316 | $ | 2,842 | 2.5 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | % Change | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental income | $ | 569,676 | $ | 551,459 | $ | 18,217 | 3.3 | % | |||||||||||||||
Interest and other operating income | 1,694 | 488 | 1,206 | NM | |||||||||||||||||||
Total revenues | 571,370 | 551,947 | 19,423 | 3.5 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Rental | 176,556 | 170,310 | 6,246 | 3.7 | |||||||||||||||||||
General and administrative | 32,254 | 32,348 | (94) | (0.3) | |||||||||||||||||||
Transaction | 299 | 297 | 2 | 0.7 | |||||||||||||||||||
Depreciation and amortization | 227,307 | 228,484 | (1,177) | (0.5) | |||||||||||||||||||
Interest expense | 69,450 | 71,285 | (1,835) | (2.6) | |||||||||||||||||||
Impairment | 16,825 | — | 16,825 | NM | |||||||||||||||||||
Total expenses | 522,691 | 502,724 | 19,967 | 4.0 | |||||||||||||||||||
Gain on sale of real estate, net | 32,896 | 1,991 | 30,905 | NM | |||||||||||||||||||
Loss on extinguishment of debt, net | — | (27,726) | 27,726 | NM | |||||||||||||||||||
Income from unconsolidated joint venture | 1,198 | 1,223 | (25) | (2.0) | |||||||||||||||||||
Other income | 401 | 290 | 111 | 38.3 | |||||||||||||||||||
Net income | $ | 83,174 | $ | 25,001 | $ | 58,173 | NM | ||||||||||||||||
NOI | $ | 394,814 | $ | 381,637 | $ | 13,177 | 3.5 | % | |||||||||||||||
Same-Property Cash NOI | $ | 345,158 | $ | 338,209 | $ | 6,949 | 2.1 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | % Change | ||||||||||||||||||||
Contractual rental income | $ | 181,275 | $ | 176,708 | $ | 4,567 | 2.6 | % | |||||||||||||||
Straight-line rent and amortization of above and (below) market leases | 4,545 | 7,298 | (2,753) | (37.7) | |||||||||||||||||||
Other rental revenue | 4,012 | 3,252 | 760 | 23.4 | |||||||||||||||||||
Total rental income | $ | 189,832 | $ | 187,258 | $ | 2,574 | 1.4 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | % Change | ||||||||||||||||||||
Contractual rental income | $ | 543,568 | $ | 521,175 | $ | 22,393 | 4.3 | % | |||||||||||||||
Straight-line rent and amortization of above and (below) market leases | 14,919 | 19,410 | (4,491) | (23.1) | |||||||||||||||||||
Other rental revenue | 11,189 | 10,874 | 315 | 2.9 | |||||||||||||||||||
Total rental income | $ | 569,676 | $ | 551,459 | $ | 18,217 | 3.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
New and renewal leases: | |||||||||||||||||||||||
Average starting base rents | $ | 23.89 | $ | 26.45 | $ | 24.50 | $ | 27.04 | |||||||||||||||
Average expiring base rents | 20.35 | 24.70 | 21.74 | 25.84 | |||||||||||||||||||
Square feet of GLA | 670 | 1,101 | 2,022 | 3,287 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
New leases: | |||||||||||||||||||||||
Tenant improvements | $ | 43.87 | $ | 21.02 | $ | 34.35 | $ | 38.16 | |||||||||||||||
Leasing commissions | 6.47 | 2.05 | 4.90 | 2.86 | |||||||||||||||||||
Tenant concessions | 6.61 | 2.59 | 6.67 | 3.70 | |||||||||||||||||||
Renewal leases: | |||||||||||||||||||||||
Tenant improvements | $ | 11.04 | $ | 4.43 | $ | 6.99 | $ | 5.58 | |||||||||||||||
Leasing commissions | 2.27 | 2.07 | 2.17 | 2.87 | |||||||||||||||||||
Tenant concessions | 0.14 | 0.94 | 0.15 | 1.99 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
New leases | 7.1 | 4.4 | 6.2 | 7.9 | |||||||||||||||||||
Renewal leases | 4.5 | 7.7 | 4.1 | 5.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 21,672 | $ | (6,827) | $ | 81,713 | $ | 24,563 | |||||||||||||||
Depreciation and amortization expense related to investments in real estate | 75,264 | 74,848 | 224,814 | 225,354 | |||||||||||||||||||
Gain on sale of real estate, net | (143) | — | (32,896) | (1,991) | |||||||||||||||||||
Impairment | — | — | 16,825 | — | |||||||||||||||||||
Proportionate share of joint venture depreciation and amortization | 487 | 468 | 1,462 | 1,443 | |||||||||||||||||||
FFO attributable to common stockholders | $ | 97,280 | $ | 68,489 | $ | 291,918 | $ | 249,369 | |||||||||||||||
Transaction expenses | 137 | 125 | 299 | 297 | |||||||||||||||||||
Loss on extinguishment of debt, net | — | 27,726 | — | 27,726 | |||||||||||||||||||
Non-controlling income from OP Units included in diluted shares | 370 | (105) | 1,461 | 438 | |||||||||||||||||||
Other normalizing adjustments (1) | — | — | — | 5,031 | |||||||||||||||||||
Normalized FFO attributable to common stockholders | $ | 97,787 | $ | 96,235 | $ | 293,678 | $ | 282,861 | |||||||||||||||
Net income (loss) attributable to common stockholders per diluted share | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
FFO adjustments per diluted share, net | 0.34 | 0.34 | 0.94 | 1.02 | |||||||||||||||||||
FFO attributable to common stockholders per diluted share | $ | 0.44 | $ | 0.31 | $ | 1.31 | $ | 1.13 | |||||||||||||||
Normalized FFO adjustments per diluted share, net | 0.00 | 0.12 | 0.01 | 0.15 | |||||||||||||||||||
Normalized FFO attributable to common stockholders per diluted share | $ | 0.44 | $ | 0.43 | $ | 1.32 | $ | 1.28 | |||||||||||||||
Weighted average diluted common shares outstanding | 222,811 | 222,101 | 222,470 | 221,521 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
Depreciation and amortization expense related to investments in real estate | 75,264 | 74,848 | 224,814 | 225,354 | |||||||||||||||||||
Gain on sale of real estate, net | (143) | — | (32,896) | (1,991) | |||||||||||||||||||
Impairment | — | — | 16,825 | — | |||||||||||||||||||
Proportionate share of joint venture depreciation and amortization | 487 | 468 | 1,462 | 1,443 | |||||||||||||||||||
FFO attributable to common unitholders | $ | 97,650 | $ | 68,384 | $ | 293,379 | $ | 249,807 | |||||||||||||||
Transaction expenses | 137 | 125 | 299 | 297 | |||||||||||||||||||
Loss on extinguishment of debt, net | — | 27,726 | — | 27,726 | |||||||||||||||||||
Other normalizing adjustments (1) | — | — | — | 5,031 | |||||||||||||||||||
Normalized FFO attributable to common unitholders | $ | 97,787 | $ | 96,235 | $ | 293,678 | $ | 282,861 | |||||||||||||||
Net income (loss) attributable to common unitholders per diluted share | $ | 0.10 | $ | (0.03) | $ | 0.37 | $ | 0.11 | |||||||||||||||
FFO adjustments per diluted OP Unit, net | 0.34 | 0.34 | 0.95 | 1.02 | |||||||||||||||||||
FFO attributable to common unitholders per diluted OP Unit | $ | 0.44 | $ | 0.31 | $ | 1.32 | $ | 1.13 | |||||||||||||||
Normalized FFO adjustments per diluted OP Unit, net | 0.00 | 0.12 | 0.00 | 0.15 | |||||||||||||||||||
Normalized FFO attributable to common unitholders per diluted OP Unit | $ | 0.44 | $ | 0.43 | $ | 1.32 | $ | 1.28 | |||||||||||||||
Weighted average diluted common OP Units outstanding | 222,811 | 222,101 | 222,470 | 221,521 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 22,042 | $ | (6,932) | $ | 83,174 | $ | 25,001 | |||||||||||||||
General and administrative expenses | 10,765 | 10,670 | 32,254 | 32,348 | |||||||||||||||||||
Transaction expenses | 137 | 125 | 299 | 297 | |||||||||||||||||||
Depreciation and amortization expense | 76,056 | 75,892 | 227,307 | 228,484 | |||||||||||||||||||
Impairment | — | — | 16,825 | — | |||||||||||||||||||
Interest expense | 23,331 | 23,136 | 69,450 | 71,285 | |||||||||||||||||||
Gain on sale of real estate, net | (143) | — | (32,896) | (1,991) | |||||||||||||||||||
Loss on extinguishment of debt, net | — | 27,726 | — | 27,726 | |||||||||||||||||||
Income from unconsolidated joint venture | (400) | (422) | (1,198) | (1,223) | |||||||||||||||||||
Other income | (94) | (117) | (401) | (290) | |||||||||||||||||||
NOI | $ | 131,694 | $ | 130,078 | $ | 394,814 | $ | 381,637 | |||||||||||||||
Straight-line rent adjustments, net | (3,012) | (5,711) | (10,408) | (12,673) | |||||||||||||||||||
Amortization of (below) and above market leases/leasehold interests, net and other GAAP adjustments | (538) | (113) | (1,413) | (2,203) | |||||||||||||||||||
Notes receivable interest income | (1,264) | (11) | (1,273) | (152) | |||||||||||||||||||
Other normalizing adjustments (1) | — | — | — | 5,031 | |||||||||||||||||||
Cash NOI | $ | 126,880 | $ | 124,243 | $ | 381,720 | $ | 371,640 | |||||||||||||||
Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI | (5,245) | (2,245) | (15,775) | (8,158) | |||||||||||||||||||
Redevelopment Cash NOI | (116) | (1,043) | (803) | (3,612) | |||||||||||||||||||
Intended for sale Cash NOI | (6,361) | (8,639) | (19,984) | (21,661) | |||||||||||||||||||
Same-Property Cash NOI (2) | $ | 115,158 | $ | 112,316 | $ | 345,158 | $ | 338,209 | |||||||||||||||
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||
Amounts in thousands, except per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net income (loss) attributable to common stockholders | $ | 28,304 | $ | (2,066) | $ | 76,661 | $ | 45,052 | ||||||
Gain on sales of real estate properties | (143,908) | (1,186) | (197,188) | (41,046) | ||||||||||
Impairment of real estate properties | — | 10,669 | (25) | 16,581 | ||||||||||
Real estate depreciation and amortization | 159,643 | 52,390 | 272,634 | 154,899 | ||||||||||
Non-controlling income from operating partnership units | 377 | — | 377 | |||||||||||
Proportionate share of unconsolidated joint ventures | 3,526 | 1,558 | 8,702 | 3,726 | ||||||||||
FFO attributable to common stockholders | $ | 47,942 | $ | 61,365 | $ | 161,161 | $ | 179,212 | ||||||
Acquisition and pursuit costs 1 | 482 | 974 | 3,137 | 2,388 | ||||||||||
Merger-related costs 2 | 79,402 | — | 92,603 | — | ||||||||||
Lease intangible amortization | (2) | 48 | 891 | (30) | ||||||||||
Non-routine legal costs/forfeited earnest money received 3 | 346 | — | 577 | (500) | ||||||||||
Debt financing costs | 1,091 | — | 2,520 | 283 | ||||||||||
Unconsolidated JV normalizing items 4 | 154 | 54 | 332 | 136 | ||||||||||
Normalized FFO attributable to common stockholders | $ | 129,415 | $ | 62,441 | $ | 261,221 | $ | 181,489 | ||||||
Non-real estate depreciation and amortization | 577 | 586 | 1,593 | 1,900 | ||||||||||
Non-cash interest amortization 5 | 8,924 | 720 | 10,382 | 2,511 | ||||||||||
Provision for bad debt, net | 457 | 25 | 616 | 3 | ||||||||||
Straight-line rent, net | (7,715) | (1,171) | (10,251) | (3,459) | ||||||||||
Stock-based compensation | 3,666 | 2,538 | 10,721 | 8,183 | ||||||||||
Unconsolidated JV non-cash items 6 | (377) | (341) | (890) | (1,051) | ||||||||||
Normalized FFO adjusted for non-cash items | $ | 134,947 | $ | 64,798 | $ | 273,392 | $ | 189,576 | ||||||
2nd generation TI | (10,147) | (6,219) | (20,097) | (16,156) | ||||||||||
Leasing commissions paid | (8,283) | (4,531) | (15,525) | (9,528) | ||||||||||
Capital additions | (16,067) | (5,443) | (23,244) | (13,539) | ||||||||||
FAD | $ | 100,450 | $ | 48,605 | $ | 214,526 | $ | 150,353 | ||||||
FFO per common share - diluted | $ | 0.14 | $ | 0.42 | $ | 0.76 | $ | 1.26 | ||||||
Normalized FFO per common share - diluted | $ | 0.39 | $ | 0.43 | $ | 1.23 | $ | 1.27 | ||||||
FFO weighted average common shares outstanding - diluted 7 | 332,819 | 144,807 | 211,746 | 142,488 |
NUMBER OF PROPERTIES | GROSS INVESTMENT at September 30, 2022 | SAME STORE CASH NOI for the three months ended September 30, | ||||||||||||
Dollars in thousands | 2022 | 2021 | ||||||||||||
Same store properties | 589 | $ | 7,943,839 | $ | 178,828 | $ | 173,951 | |||||||
THREE MONTHS ENDED SEPTEMBER 30, | ||||||||
Dollars in thousands | 2022 | 2021 | ||||||
Net income | $ | 28,304 | $ | (2,066) | ||||
Non-controlling interests | 312 | — | ||||||
Other income (expense) | (89,477) | 23,000 | ||||||
General and administrative expense | 16,741 | 8,207 | ||||||
Depreciation and amortization expense | 158,117 | 50,999 | ||||||
Other expenses 1 | 82,659 | 3,193 | ||||||
Straight-line rent revenue, net | (7,715) | (1,170) | ||||||
Joint venture properties | 3,922 | 1,210 | ||||||
Other revenue 2 | (5,242) | (2,043) | ||||||
Cash NOI | 187,621 | 81,330 | ||||||
Pre-Merger Legacy HTA NOI | 27,769 | 125,609 | ||||||
Proforma cash NOI | 215,390 | 206,939 | ||||||
Cash NOI not included in same store | (36,562) | (32,988) | ||||||
Proforma same store cash NOI | $ | 178,828 | $ | 173,951 |
AS OF SEPTEMBER 30, 2022 | ||||||||||||||
Dollars and square feet in thousands | PROPERTY COUNT | GROSS INVESTMENT 1 | SQUARE FEET | OCCUPANCY | ||||||||||
Same store properties | 589 | $ | 7,943,839 | 34,731 | 89.1 | % | ||||||||
Acquisitions | 85 | 426,519 | 4,235 | 89.3 | % | |||||||||
Development completions | 6 | 166,775 | 410 | 86.8 | % | |||||||||
Redevelopments | 11 | 168,154 | 1,067 | 58.4 | % | |||||||||
Planned Dispositions | 4 | 69,449 | 223 | 2.4 | % | |||||||||
Total owned real estate properties | 695 | $ | 8,774,736 | 40,666 | 87.8 | % |
THREE MONTHS ENDED SEPTEMBER 30, | CHANGE | |||||||||||||
Dollars in thousands | 2022 | 2021 | $ | % | ||||||||||
Contractual interest | $ | 42,019 | $ | 12,201 | $ | 29,818 | 244.4 | % | ||||||
Net discount/premium accretion | 7,617 | 50 | 7,567 | 15,134.0 | % | |||||||||
Deferred financing costs amortization | 1,341 | 713 | 628 | 88.1 | % | |||||||||
Interest rate swap amortization | 42 | 42 | — | — | % | |||||||||
Treasury hedge amortization | 107 | 107 | — | — | % | |||||||||
Fair value derivative | 1,732 | — | 1,732 | — | % | |||||||||
Interest cost capitalization | (703) | (34) | (669) | 1,967.6 | % | |||||||||
Right-of-use assets financing amortization | 889 | 255 | 634 | 248.6 | % | |||||||||
Total interest expense | $ | 53,044 | $ | 13,334 | $ | 39,710 | 297.8 | % |
Nine Months Ended September 30, | |||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Cash, cash equivalents and restricted cash - beginning of period | $ | 118,765 | $ | 37,616 | $ | 81,149 | |||||||||||
Net cash provided by operating activities | 271,618 | 269,668 | 1,950 | ||||||||||||||
Net cash used in investing activities | (257,332) | (159,919) | (97,413) | ||||||||||||||
Net cash used in financing activities | (113,587) | 83,881 | (197,468) | ||||||||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 19,464 | $ | 231,246 | $ | (211,782) |
NINE MONTHS ENDED SEPTEMBER 30, | CHANGE | |||||||||||||
Dollars in thousands | 2022 | 2021 | $ | % | ||||||||||
Contractual interest | $ | 68,470 | $ | 36,590 | $ | 31,880 | 87.1 | % | ||||||
Net discount/premium accretion | 7,747 | 146 | 7,601 | 5,206.2 | % | |||||||||
Deferred financing costs amortization | 2,760 | 2,114 | 646 | 30.6 | % | |||||||||
Interest rate swap amortization | 126 | 126 | — | — | % | |||||||||
Treasury hedge amortization | 320 | 320 | — | — | % | |||||||||
Fair value derivative | 1,732 | — | 1,732 | — | % | |||||||||
Interest cost capitalization | (848) | (187) | (661) | 353.5 | % | |||||||||
Right-of-use assets financing amortization | 1,941 | 748 | 1,193 | 159.5 | % | |||||||||
Total interest expense | $ | 82,248 | $ | 39,857 | $ | 42,391 | 106.4 | % |
Period | Total Number of Shares Purchased (1) (2) | Average Price Paid per Share (1) (2) | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||||||||||||||
July 1, 2021 to July 31, 2021 | 426 | $ | 27.25 | — | — | |||||||||||||||||||||
August 1, 2021 to August 31, 2021 | — | — | — | — | ||||||||||||||||||||||
September 1, 2021 to September 30, 2021 | — | — | — | — | ||||||||||||||||||||||
(1) Purchases represent shares of common stock withheld by us to satisfy withholding obligations on the vesting of restricted shares. The price paid per share was the then closing price of our common stock on the NYSE. | ||||||||||||||||||||||||||
(2) For each share of common stock redeemed by HTA, HTALP redeems a corresponding number of OP Units in the HTALP operating partnership. Therefore, the OP Units in the HTALP operating partnership repurchased by HTALP are the same as the shares of common stock repurchased by HTA as shown above. |
PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID per share | TOTAL NUMBER OF SHARES purchased as part of publicly announced plans of programs | MAXIMUM NUMBER OF SHARES that may yet be purchased under the plans or programs | ||||||||||
July 1 - July 31 | — | $ | — | — | — | |||||||||
August 1 - August 31 | — | — | — | — | ||||||||||
September 1 - September 30 | 2,018 | 24.14 | — | — | ||||||||||
Total | 2,018 |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
/s/ J. CHRISTOPHER DOUGLAS | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
November |