Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 05, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35568 | |
Entity Registrant Name | HEALTHCARE REALTY TRUST INCORPORATED | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-4738467 | |
Entity Address, Address Line One | 3310 West End Avenue | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 269-8175 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | HR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 380,549,204 | |
Entity Central Index Key | 0001360604 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Former Address | ||
Entity Information [Line Items] | ||
Entity Address, Address Line One | 16435 N. Scottsdale Road | |
Entity Address, Address Line Two | Suite 320 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85254 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate properties | ||
Land | $ 456,306 | $ 387,918 |
Buildings, improvements and lease intangibles | 4,673,026 | 4,458,119 |
Personal property | 11,799 | 11,761 |
Investment in financing receivable, net | 118,446 | 186,745 |
Financing lease right-of-use assets | 71,632 | 31,576 |
Construction in progress | 16,728 | 3,974 |
Land held for development | 22,952 | 24,849 |
Total real estate properties | 5,370,889 | 5,104,942 |
Less accumulated depreciation and amortization | (1,402,509) | (1,338,743) |
Total real estate properties, net | 3,968,380 | 3,766,199 |
Cash and cash equivalents | 34,312 | 13,175 |
Assets held for sale, net | 0 | 57 |
Operating lease right-of-use assets | 126,204 | 128,386 |
Investments in unconsolidated joint ventures | 210,781 | 161,942 |
Other assets, net | 209,200 | 189,160 |
Total assets | 4,548,877 | 4,258,919 |
Liabilities | ||
Notes and bonds payable | 2,063,755 | 1,801,325 |
Accounts payable and accrued liabilities | 84,210 | 86,108 |
Liabilities of assets held for sale | 0 | 294 |
Operating lease liabilities | 94,748 | 96,138 |
Financing lease liabilities | 62,195 | 22,551 |
Other liabilities | 66,102 | 67,387 |
Total liabilities | 2,371,010 | 2,073,803 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $.01 par value per share; 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value per share; 300,000 shares authorized; 151,637 and 150,457 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 1,516 | 1,505 |
Additional paid-in capital | 4,002,526 | 3,972,917 |
Accumulated other comprehensive loss | (1,250) | (9,981) |
Cumulative net income attributable to common stockholders | 1,314,515 | 1,266,158 |
Cumulative dividends | (3,139,440) | (3,045,483) |
Total stockholders' equity | 2,177,867 | 2,185,116 |
Total liabilities and stockholders' equity | $ 4,548,877 | $ 4,258,919 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (shares) | 0 | 0 |
Preferred stock, outstanding (shares) | 0 | 0 |
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 300,000,000 | 300,000,000 |
Common stock, issued (shares) | 151,637,000 | 150,457,000 |
Common stock, outstanding (shares) | 151,637,000 | 150,457,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Rental income | $ 140,632 | $ 128,486 | $ 279,121 | $ 256,874 |
Interest from financing receivable, net | 1,957 | 510 | 3,887 | 510 |
Other operating | 2,738 | 2,427 | 5,213 | 4,378 |
Revenues | 145,327 | 131,423 | 288,221 | 261,762 |
Expenses | ||||
Property operating | 57,010 | 51,509 | 114,474 | 103,724 |
General and administrative | 10,540 | 8,545 | 21,576 | 17,044 |
Acquisition and pursuit costs | 1,352 | 670 | 2,655 | 1,414 |
Merger-related costs | 7,085 | 0 | 13,201 | 0 |
Depreciation and amortization | 55,731 | 49,826 | 109,772 | 99,905 |
Expenses | 131,718 | 110,550 | 261,678 | 222,087 |
Other income (expense) | ||||
Gain on sales of real estate properties | 8,496 | 20,970 | 53,280 | 39,860 |
Interest expense | (15,543) | (13,261) | (29,204) | (26,523) |
Loss on extinguishment of debt | 0 | 0 | (1,429) | 0 |
Impairment of real estate properties | 0 | (5,078) | 25 | (5,912) |
Equity loss from unconsolidated joint ventures | (307) | (146) | (652) | (220) |
Interest and other (expense) income, net | (125) | (262) | (206) | 238 |
Total other income (expense) | (7,479) | 2,223 | 21,814 | 7,443 |
Net income | $ 6,130 | $ 23,096 | $ 48,357 | $ 47,118 |
Basic earnings per common share (in dollars per share) | $ 0.04 | $ 0.16 | $ 0.32 | $ 0.33 |
Diluted earnings per common share (in dollars per share) | $ 0.04 | $ 0.16 | $ 0.32 | $ 0.33 |
Weighted average common shares outstanding - basic | 149,675,855 | 141,917,213 | 149,321,412 | 140,354,167 |
Weighted average common shares outstanding - diluted | 149,738,549 | 142,048,988 | 149,396,806 | 140,467,777 |
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income | $ 6,130 | $ 23,096 | $ 48,357 | $ 47,118 |
Interest rate swaps | ||||
Reclassification adjustments for losses included in net income (interest expense) | 823 | 1,114 | 1,909 | 2,209 |
Gains (losses) arising during the period on interest rate swaps | 1,663 | (807) | 6,822 | 2,043 |
Other comprehensive income | 2,486 | 307 | 8,731 | 4,252 |
Comprehensive income | 8,616 | 23,403 | 57,088 | 51,370 |
Interest Rate Swaps | ||||
Interest rate swaps | ||||
Gains (losses) arising during the period on interest rate swaps | $ 1,663 | $ (807) | $ 6,822 | $ 2,043 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends |
Beginning balance at Dec. 31, 2020 | $ 1,948,376 | $ 1,395 | $ 3,635,341 | $ (17,832) | $ 1,199,499 | $ (2,870,027) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 179,275 | 59 | 179,216 | |||
Common stock redemptions | (1,611) | (1) | (1,610) | |||
Share-based compensation | 5,647 | 2 | 5,645 | |||
Net income | 47,118 | 47,118 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 2,209 | 2,209 | ||||
Gains (Losses) arising during the period on interest rate swaps | 2,043 | 2,043 | ||||
Dividends to common stockholders (in usd per share) | (86,803) | (86,803) | ||||
Ending balance at Jun. 30, 2021 | 2,096,254 | 1,455 | 3,818,592 | (13,580) | 1,246,617 | (2,956,830) |
Beginning balance at Mar. 31, 2021 | 1,998,109 | 1,417 | 3,699,867 | (13,887) | 1,223,521 | (2,912,809) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 116,191 | 38 | 116,153 | |||
Common stock redemptions | (55) | (55) | ||||
Share-based compensation | 2,627 | 2,627 | ||||
Net income | 23,096 | 23,096 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 1,114 | 1,114 | ||||
Gains (Losses) arising during the period on interest rate swaps | (807) | (807) | ||||
Dividends to common stockholders (in usd per share) | (44,021) | (44,021) | ||||
Ending balance at Jun. 30, 2021 | 2,096,254 | 1,455 | 3,818,592 | (13,580) | 1,246,617 | (2,956,830) |
Beginning balance at Dec. 31, 2021 | 2,185,116 | 1,505 | 3,972,917 | (9,981) | 1,266,158 | (3,045,483) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 22,771 | 7 | 22,764 | |||
Common stock redemptions | (206) | (206) | ||||
Share-based compensation | 7,055 | 4 | 7,051 | |||
Net income | 48,357 | 48,357 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 1,909 | 1,909 | ||||
Gains (Losses) arising during the period on interest rate swaps | 6,822 | 6,822 | ||||
Dividends to common stockholders (in usd per share) | (93,957) | (93,957) | ||||
Ending balance at Jun. 30, 2022 | 2,177,867 | 1,516 | 4,002,526 | (1,250) | 1,314,515 | (3,139,440) |
Beginning balance at Mar. 31, 2022 | 2,212,882 | 1,516 | 3,999,060 | (3,736) | 1,308,385 | (3,092,343) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of issuance costs | 110 | 110 | ||||
Share-based compensation | 3,356 | 3,356 | ||||
Net income | 6,130 | 6,130 | ||||
Reclassification adjustments for losses included in net income (interest expense) | 823 | 823 | ||||
Gains (Losses) arising during the period on interest rate swaps | 1,663 | 1,663 | ||||
Dividends to common stockholders (in usd per share) | (47,097) | (47,097) | ||||
Ending balance at Jun. 30, 2022 | $ 2,177,867 | $ 1,516 | $ 4,002,526 | $ (1,250) | $ 1,314,515 | $ (3,139,440) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividend per share to common Stockholders (in dollars per share) | $ 0.31 | $ 0.3025 | $ 0.62 | $ 0.6050 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||||
Net income | $ 6,130 | $ 23,096 | $ 48,357 | $ 47,118 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 109,772 | 99,905 | |||
Other amortization | 2,680 | 1,728 | |||
Share-based compensation | 7,055 | 5,647 | |||
Amortization of straight-line rent receivable (lessor) | (3,292) | (3,024) | |||
Amortization of straight-line rent on operating leases (lessee) | 756 | 735 | |||
Gain on sales of real estate properties | (53,280) | (39,860) | |||
Loss on extinguishment of debt | 0 | 0 | 1,429 | 0 | |
Impairment of real estate properties | (25) | 5,912 | |||
Equity loss from unconsolidated joint ventures | 307 | 146 | 652 | 220 | |
Distributions from unconsolidated joint ventures | 108 | 0 | |||
Non-cash interest from financing receivable | (388) | 0 | |||
Changes in operating assets and liabilities: | |||||
Other assets, including right-of-use-assets | 540 | (4,746) | |||
Accounts payable and accrued liabilities | (3,166) | (10,418) | |||
Other liabilities | 2,923 | 2,412 | |||
Net cash provided by operating activities | 114,121 | 105,629 | |||
INVESTING ACTIVITIES | |||||
Acquisitions of real estate | (287,004) | (100,121) | |||
Development of real estate | (7,475) | (1,415) | |||
Additional long-lived assets | (45,631) | (41,839) | |||
Investments in unconsolidated joint ventures | (49,599) | (45,018) | |||
Investment in financing receivable | 498 | ||||
Investment in financing receivable | (104,648) | ||||
Proceeds from sales of real estate properties | 108,044 | 90,144 | |||
Net cash used in investing activities | (281,167) | (202,897) | |||
FINANCING ACTIVITIES | |||||
Net borrowings on unsecured credit facility | 280,500 | 13,000 | |||
Repayments of notes and bonds payable | (18,224) | (1,925) | |||
Redemption of notes and bonds payable | (2,184) | 0 | |||
Dividends paid | (93,774) | (86,803) | |||
Net proceeds from issuance of common stock | 22,768 | 179,381 | |||
Common stock redemptions | (852) | (2,014) | |||
Debt issuance and assumption costs | 0 | (252) | |||
Payments made on finance leases | (51) | (683) | |||
Net cash provided by financing activities | 188,183 | 100,704 | |||
Increase in cash and cash equivalents | 21,137 | 3,436 | |||
Cash and cash equivalents at beginning of period | 13,175 | 15,303 | $ 15,303 | ||
Cash and cash equivalents at end of period | $ 34,312 | $ 18,739 | 34,312 | 18,739 | $ 13,175 |
Supplemental Cash Flow Information | |||||
Interest paid | 26,641 | 24,659 | |||
Invoices accrued for construction, tenant improvements and other capitalized costs | 18,874 | 19,506 | |||
Capitalized interest | $ 145 | $ 154 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Overview Healthcare Realty Trust Incorporated is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. References to the Company in these Notes to the Condensed Consolidated Financial Statements are to Legacy HR as the "accounting acquiror" in the Merger defined and described in more detail in Note 9 to these Condensed Consolidated Financial Statements. As of June 30, 2022, the Company had gross investments of approximately $5.4 billion in 255 real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property. The Company's 255 real estate properties are located in 23 states and total approximately 17.2 million square feet. The Company provided leasing and property management services to approximately 15.4 million square feet nationwide. The Company owns 50% of an unconsolidated joint venture with Teachers Insurance and Annuity Association (the "TIAA Joint Venture") and earns certain fees as the managing member. As of June 30, 2022, the TIAA Joint Venture owned 21 real estate properties. See Note 2 for more details regarding the Company's unconsolidated joint ventures. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the Company's Condensed Consolidated Financial Statements, are outside the scope of our independent registered public accounting firm’s review. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2022 for many reasons including, but not limited to, the Merger (as discussed in more detail in Note 9 below), acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. Principles of Consolidation The Company’s Condensed Consolidated Financial Statements include, as of June 30, 2022, the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis. For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For any entity in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. As of June 30, 2022, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities. See Note 2 for more details regarding the Company's unconsolidated joint ventures. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. Investments in Leases - Financing Receivables, Net In accordance with Accounting Standards Codification ("ASC") 842, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC 310 “Receivables”. During the first quarter of 2022, the Company reclassified the two medical office buildings in Nashville, Tennessee that were acquired in separate sale-leaseback transactions in the fourth quarter of 2021. The leases with the sellers commenced in the first quarter, which resulted in the allocation of the financing receivable totaling $73.9 million to land and building and improvements. Income from Lease Financing Receivables The Company recognizes the related income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease agreement. Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. Amortization of these amounts will be recognized as a reduction to Income from financing receivable, net over the life of the lease. Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income. Below is a detail of the amounts by category: THREE MONTHS ENDED SIX MONTHS ENDED in thousands 2022 2021 2022 2021 Type of Revenue Parking income $ 1,919 $ 1,880 $ 3,672 $ 3,538 Management fee income 1 783 419 1,438 658 Miscellaneous 36 128 103 182 $ 2,738 $ 2,427 $ 5,213 $ 4,378 1 Includes the recovery of certain expenses under the financing receivable as outlined in the management agreement. The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle. New Accounting Pronouncements Accounting Standards Update No. 2020-04 On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848) |
Real Estate Investments
Real Estate Investments | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Real Estate Investments | Real Estate Investments 2022 Company Acquisitions The following table details the Company's acquisitions for the six months ended June 30, 2022: Dollars in thousands DATE ACQUIRED PURCHASE PRICE CASH 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 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 Total real estate acquisitions $ 285,937 $ 283,628 $ 270,296 $ 13,332 544,102 1 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 2 Excludes financing right of use assets. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 Includes two properties. Subsequent to June 30, 2022 and unrelated to the Merger, the Company acquired the following property: Dollars in thousands DATE ACQUIRED PURCHASE PRICE SQUARE FOOTAGE Seattle, WA 8/1/22 $ 4,850 10,593 2022 TIAA Joint Venture Acquisitions The TIAA Joint Venture is not consolidated for purposes of the Company's Condensed Consolidated Financial Statements. The following table details the TIAA Joint Venture acquisitions for the six months ended June 30, 2022: Dollars in thousands DATE ACQUIRED PURCHASE PRICE CASH 1 REAL 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 real estate acquisitions $ 100,975 $ 99,173 $ 97,569 $ 1,604 214,124 1 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 2 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 3 Includes three properties. 4 Includes two properties. Unconsolidated Joint Ventures The Company's investment in and loss recognized for the three and six months ended June 30, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2022 2021 2022 2021 Investments in unconsolidated joint ventures, beginning of period 1 $ 211,195 $ 83,943 $ 161,942 $ 73,137 New investments during the period — 34,138 49,599 45,018 Equity loss recognized during the period 1 (307) (146) (652) (220) Owner Distributions (107) — (108) — Investments in unconsolidated joint ventures, end of period 1 $ 210,781 $ 117,935 $ 210,781 $ 117,935 1 In addition to the TIAA Joint Venture, the Company also has a 55% and 27% ownership interest, respectively, in two limited liability companies that each own a parking garage in Atlanta, Georgia. 2022 Real Estate Asset Dispositions The following table details the Company's dispositions for the six months ended June 30, 2022: Dollars in millions 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 Total dispositions $ 110,450 $ (2,317) $ 108,133 $ 54,476 $ 288 $ 53,369 351,814 1 Includes straight-line rent receivables, leasing commissions and lease inducements. 2 Includes two properties. Assets Held for Sale The Company did not have any properties classified as assets held for sale as of June 30, 2022 and December 31, 2021. The table below reflects the assets and liabilities of the properties classified as held for sale as of June 30, 2022 and December 31, 2021: Dollars in thousands June 30, 2022 December 31, 2021 Other assets, net $ — $ 57 Assets held for sale, net $ — $ 57 Accounts payable and accrued liabilities $ — $ 169 Other liabilities — 125 Liabilities of assets held for sale $ — $ 294 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company’s properties generally were leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2040. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company's leases typically have escalators that are either based on a stated percentage or an index such as the consumer price index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2022 was $140.6 million and $279.1 million, respectively. On March 30, 2022, the Company executed a lease as a ground lessor for a 1.9 acre parcel of land in Texas previously recorded in land held for development. The lease is classified as a sales-type lease under Topic 842 as the present value of lease payments equals or exceeds substantially all of the fair value of the underlying asset. The land value of $1.8 million was reclassified from Land held for development to Other assets. Future lease payments under the non-cancelable operating leases, excluding any reimbursements and the sale-type lease, as of June 30, 2022 were as follows: Dollars in thousands OPERATING 2022 $ 214,083 2023 398,689 2024 326,597 2025 269,308 2026 217,068 2027 and thereafter 566,038 $ 1,991,783 Lessee Accounting As of June 30, 2022, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2022, the Company had 108 properties totaling 8.9 million square feet that were held under ground leases. Some of the ground lease renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on CPI. The Company had 41 prepaid ground leases as of June 30, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.1 million and $0.2 million of the Company’s rental expense for the three months ended June 30, 2022 and 2021, respectively, and $0.3 million for the six months ended June 30, 2022 and 2021, respectively. The Company’s future lease payments (primarily for its 67 non-prepaid ground leases) as of June 30, 2022 were as follows: Dollars in thousands OPERATING FINANCING 2022 $ 2,118 $ 735 2023 5,071 1,654 2024 5,130 1,692 2025 5,174 1,723 2026 5,201 1,749 2027 and thereafter 306,956 368,730 Total undiscounted lease payments 329,650 376,283 Discount (234,902) (314,088) Lease liabilities $ 94,748 $ 62,195 The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2022 and 2021: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2022 2021 2022 2021 Operating lease cost Operating lease expense $ 1,194 $ 1,182 $ 2,409 $ 2,360 Variable lease expense 1,038 972 2,062 1,868 Finance lease cost Amortization of right-of-use assets 331 88 503 176 Interest on lease liabilities 765 247 1,052 493 Total lease expense $ 3,328 $ 2,489 $ 6,026 $ 4,897 Other information Operating cash flows outflows related to operating leases $ 1,799 $ 2,587 $ 4,596 $ 4,431 Operating cash flows outflows related to financing leases $ 509 $ — $ 767 $ — Financing cash flows outflows related to financing leases $ — $ 321 $ 51 $ 683 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ 40,589 $ — Weighted-average remaining lease term (excluding renewal options) - operating leases 47.4 48.1 Weighted-average remaining lease term (excluding renewal options) - finance leases 61.7 64.5 Weighted-average discount rate - operating leases 5.6 % 5.7 % Weighted-average discount rate - finance leases 5.0 % 5.4 % |
Leases | Leases Lessor Accounting The Company’s properties generally were leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2040. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company's leases typically have escalators that are either based on a stated percentage or an index such as the consumer price index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2022 was $140.6 million and $279.1 million, respectively. On March 30, 2022, the Company executed a lease as a ground lessor for a 1.9 acre parcel of land in Texas previously recorded in land held for development. The lease is classified as a sales-type lease under Topic 842 as the present value of lease payments equals or exceeds substantially all of the fair value of the underlying asset. The land value of $1.8 million was reclassified from Land held for development to Other assets. Future lease payments under the non-cancelable operating leases, excluding any reimbursements and the sale-type lease, as of June 30, 2022 were as follows: Dollars in thousands OPERATING 2022 $ 214,083 2023 398,689 2024 326,597 2025 269,308 2026 217,068 2027 and thereafter 566,038 $ 1,991,783 Lessee Accounting As of June 30, 2022, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2022, the Company had 108 properties totaling 8.9 million square feet that were held under ground leases. Some of the ground lease renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on CPI. The Company had 41 prepaid ground leases as of June 30, 2022. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.1 million and $0.2 million of the Company’s rental expense for the three months ended June 30, 2022 and 2021, respectively, and $0.3 million for the six months ended June 30, 2022 and 2021, respectively. The Company’s future lease payments (primarily for its 67 non-prepaid ground leases) as of June 30, 2022 were as follows: Dollars in thousands OPERATING FINANCING 2022 $ 2,118 $ 735 2023 5,071 1,654 2024 5,130 1,692 2025 5,174 1,723 2026 5,201 1,749 2027 and thereafter 306,956 368,730 Total undiscounted lease payments 329,650 376,283 Discount (234,902) (314,088) Lease liabilities $ 94,748 $ 62,195 The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2022 and 2021: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2022 2021 2022 2021 Operating lease cost Operating lease expense $ 1,194 $ 1,182 $ 2,409 $ 2,360 Variable lease expense 1,038 972 2,062 1,868 Finance lease cost Amortization of right-of-use assets 331 88 503 176 Interest on lease liabilities 765 247 1,052 493 Total lease expense $ 3,328 $ 2,489 $ 6,026 $ 4,897 Other information Operating cash flows outflows related to operating leases $ 1,799 $ 2,587 $ 4,596 $ 4,431 Operating cash flows outflows related to financing leases $ 509 $ — $ 767 $ — Financing cash flows outflows related to financing leases $ — $ 321 $ 51 $ 683 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ 40,589 $ — Weighted-average remaining lease term (excluding renewal options) - operating leases 47.4 48.1 Weighted-average remaining lease term (excluding renewal options) - finance leases 61.7 64.5 Weighted-average discount rate - operating leases 5.6 % 5.7 % Weighted-average discount rate - finance leases 5.0 % 5.4 % |
Notes and Bonds Payable
Notes and Bonds Payable | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes and Bonds Payable | Notes and Bonds Payable The table below details the Company’s notes and bonds payable as of June 30, 2022 and 2021. MATURITY DATES BALANCE AS OF EFFECTIVE INTEREST RATE Dollars in thousands 6/30/2022 12/31/2021 $700 million Unsecured Credit Facility 5/23 $ 490,500 $ 210,000 2.69 % $200 million Unsecured Term Loan due 2024, net of issuance costs 1 5/24 199,572 199,460 2.55 % $150 million Unsecured Term Loan due 2026, net of issuance costs 2 6/26 149,447 149,376 2.79 % Senior Notes due 2025, net of discount and issuance costs 3 5/25 249,176 249,040 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 296,864 296,612 3.84 % Senior Notes due 2030, net of discount and issuance costs 4 3/30 296,989 296,813 2.71 % Senior Notes due 2031, net of discount and issuance costs 3/31 295,601 295,374 2.24 % Mortgage notes payable, net of discounts and issuance costs and including premiums 8/23-12/26 85,606 104,650 3.97 % $ 2,063,755 $ 1,801,325 1 The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points). 2 The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 95 basis points). 3 The effective interest rate includes the impact of the $1.7 million settlement of forward-starting interest rate swaps that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. 4 The effective interest rate includes the impact of the $4.3 million settlement of forward interest rate hedges that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. Changes in Debt Structure Mortgage payoffs On February 18, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 4.70% that encumbered a 56,762 square foot property in California. The aggregate payoff price of $12.6 million consisted of outstanding principal of $11.0 million and a "make-whole" amount of approximately $1.6 million. The unamortized premium of $0.8 million and the unamortized cost on this note of $0.1 million were written off upon payoff. On February 24, 2022, the Company repaid in full a mortgage note payable bearing interest at a rate of 6.17% that encumbered a 80,153 square foot property in Colorado, in conjunction with the disposition of the property. The aggregate payoff price of $6.4 million consisted of outstanding principal of $5.8 million and a "make-whole" amount of approximately $0.6 million. The unamortized premium of $0.1 million was written off upon payoff. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated, and that qualify, as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of June 30, 2022, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: DERIVATIVE INSTRUMENT NUMBER OF INSTRUMENTS NOTIONAL AMOUNT Interest rate swaps 8 $175.0 Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of June 30, 2022. BALANCE AT JUNE 30, 2022 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps 2017, 2018, and 2019 Other assets $ 2,516 Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2022 and 2021 related to the Company's outstanding interest rate swaps. (GAIN) LOSS RECOGNIZED IN LOSS RECLASSIFIED FROM In thousands 2022 2021 2022 2021 Interest rate swaps $ (1,663) $ 807 Interest expense $ 674 $ 965 Settled treasury hedges — — Interest expense 107 107 Settled interest rate swaps — — Interest expense 42 42 $ (1,663) $ 807 Total interest expense $ 823 $ 1,114 GAIN RECOGNIZED IN LOSS RECLASSIFIED FROM In thousands 2022 2021 2022 2021 Interest rate swaps $ (6,822) $ (2,043) Interest expense $ 1,612 $ 1,912 Settled treasury hedges — — Interest expense 213 213 Settled interest rate swaps — — Interest expense 84 84 $ (6,822) $ (2,043) Total interest expense $ 1,909 $ 2,209 The Company estimates that $1.0 million related to active interest rate swaps will be reclassified from AOCI as a decrease to interest expense over the next 12 months, and that $0.6 million related to settled interest rate swaps will be amortized from AOCI as an increase to interest expense over the next 12 months. Credit-risk-related Contingent Features The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of June 30, 2022, the fair value of derivatives in a net asset position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $2.4 million. As of June 30, 2022, the Company has not posted any collateral related to these agreements and was not in breach of any agreement. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Redevelopment Activity During the second quarter of 2022, the Company continued the redevelopment of a 217,114 square foot medical office building in Dallas, Texas. As of June 30, 2022, the Company had funded approximately $10.2 million in project costs. The building continues to operate with in-place leases during construction. The first new tenant lease of the redevelopment commenced in the first quarter of 2022. During the second quarter of 2022, the Company continued the redevelopment of a medical office building in Tacoma, Washington. As of June 30, 2022, the Company had funded approximately $9.5 million in project costs. The redevelopment includes interior and exterior improvements to the existing building, plus the addition of 23,000 square feet. The Company expects the 23,000 square foot tenant lease for the expansion space to commence in the fourth quarter of 2022. During the second quarter of 2022, the Company continued the development of a medical office building in Nashville, Tennessee. The Company began construction of a 106,194 square foot medical office building with the initial tenant lease expected to commence in the third quarter of 2023. As of June 30, 2022, the Company had funded approximately $7.4 million in project costs. The redevelopment includes the demolition of an existing 81,000 square foot medical office building. The Company recognized an impairment charge of $5.0 million related to the existing building in 2021. During the second quarter of 2022, the Company continued redevelopment projects related to the following: • Two medical office buildings totaling 158,338 square feet in Washington, DC. The Company has approved a leasing plan with a capital outlay that is expected to be completed in the first quarter of 2024. As of June 30, 2022, the Company has funded $0.1 million in project costs. • A medical office building totaling 145,365 square feet in Dallas, Texas. The Company has approved a capital and leasing plan that is expected to be completed in the first quarter of 2024. As of June 30, 2022, the Company has funded $0.6 million in project costs. • A medical office building totaling 93,992 square feet in Denver, Colorado that is expected to be a part of a larger redevelopment plan that was initiated in the first quarter of 2022. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2022 and the twelve months ended December 31, 2021: SIX MONTHS ENDED JUNE 30, 2022 TWELVE MONTHS ENDED DECEMBER 31, 2021 Balance, beginning of period 150,457,433 139,487,375 Issuance of common stock 745,483 10,899,301 Non-vested share-based awards, net of withheld shares 434,001 70,757 Balance, end of period 151,636,917 150,457,433 At-The-Market Equity Offering Program On August 6, 2021 and November 5, 2021, the Company entered into equity distribution agreements with 12 investment banks to allow for issuance and sale under its at-the-market equity offering program of up to an aggregate of $750.0 million of common stock. These agreements are no longer in effect following the closing of the Merger on July 20, 2022. The following table details the Company's forward at-the-market activity: WEIGHTED AVERAGE SALE PRICE FORWARD SHARE CONTRACTS SHARES SETTLED SHARES REMAINING TO BE SETTLED NET PROCEEDS Balance at December 31, 2021 $ — — — 727,400 $ — 1Q 2022 $ 31.73 — 727,400 — $ 22.3 2Q 2022 $ — — — — $ — Common Stock Dividends During the six months ended June 30, 2022, the Company declared and paid common stock dividends totaling $0.62 per share. On July 1, 2022, the Company declared a prorated quarterly common stock dividend in the amount of $0.2010 per share payable on July 19, 2022 to stockholders of record on July 14, 2022. The remaining quarterly common stock dividend portion of $0.1090 per share was declared August 2, 2022 and is payable on August 30, 2022 to stockholders of record on August 15, 2022 . Earnings Per Common Share The Company uses the two-class method of computing net earnings per common shares. The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method. During the three and six months ended June 30, 2022, the Company did not enter into any forward sale agreements to sell shares of common stock through the Company's at-the market equity offering program. The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2022 and 2021. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, Dollars in thousands, except per share data 2022 2021 2022 2021 Weighted average common shares outstanding Weighted average common shares outstanding 151,620,897 143,700,491 151,230,064 142,142,577 Non-vested shares (1,945,042) (1,783,278) (1,908,652) (1,788,410) Weighted average common shares outstanding - basic 149,675,855 141,917,213 149,321,412 140,354,167 Weighted average common shares outstanding - basic 149,675,855 141,917,213 149,321,412 140,354,167 Dilutive effect of forward equity shares — 61,064 — 27,896 Dilutive effect of employee stock purchase plan 62,694 70,711 75,394 85,714 Weighted average common shares outstanding - diluted 149,738,549 142,048,988 149,396,806 140,467,777 Net Income $ 6,130 $ 23,096 $ 48,357 $ 47,118 Dividends paid on nonvested share-based awards (601) (539) (1,207) (1,080) Net income applicable to common stockholders $ 5,529 $ 22,557 $ 47,150 $ 46,038 Basic earnings per common share - net income $ 0.04 $ 0.16 $ 0.32 $ 0.33 Diluted earnings per common share - net income $ 0.04 $ 0.16 $ 0.32 $ 0.33 Incentive Plans Restricted Common Shares During the six months ended June 30, 2022, the Company made the following stock awards: • During the first quarter of 2022, the Company granted non-vested stock awards to its named executive officers and other members of senior management and employees with a grant date fair value of $13.0 million, which consisted of an aggregate of 415,184 non-vested shares with vesting periods ranging from three eight • During the second quarter of 2022, the Company granted non-vested stock awards to its eight directors with a grant date fair value of $0.8 million, which consisted of an aggregate of 26,840 non-vested shares, with a one A summary of the activity under the Company's share-based incentive plans for the three and six months ended June 30, 2022 and 2021 is included in the table below. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2022 2021 2022 2021 Share-based awards, beginning of period 1,951,551 1,786,371 1,562,028 1,766,061 Granted 26,840 37,978 442,024 203,701 Vested (36,682) (46,041) (61,047) (191,454) Forfeited — — (1,296) — Share-based awards, end of period 1,941,709 1,778,308 1,941,709 1,778,308 During the six months ended June 30, 2022 and 2021, the Company withheld 6,727 and 51,972 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested. Restricted Stock Units Prior to 2022, the Company granted long-term incentive awards, comprised of restricted stock, based on backward-looking performance measured at the end of the calendar year. The Company adopted a new incentive compensation structure effective January 2022, comprised of restricted stock and restricted stock units ("RSUs"). The RSUs are granted at the beginning of the year with three-year forward-looking performance targets. On January 3, 2022, the Company granted restricted stock units to its named executive officers and certain other members of senior management and officers, with a grant date fair value of $9.7 million, which consisted of an aggregate 294,932 RSUs with a five-year vesting period. Approximately 43% of the RSUs vest based on two market performance conditions. Relative and absolute total shareholder return ("TSR") awards containing these market performance conditions were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair values of $30.56 for the absolute TSR component and $41.30 for the relative TSR component for the January 2022 grant using the following assumptions: THREE MONTHS ENDED MARCH 31, Volatility 30.0 % Dividend assumption Accrued Expected term in years 3 years Risk-free rate 1.02 % Stock price (per share) $31.68 The remaining 57% of the restricted stock units vest upon certain operating performance conditions. With respect to the operating performance conditions of the January grant, the grant date fair value was $31.68 based on the Company's share price on the date of grant. The combined weighted average grant date fair value of the January restricted stock units was $33.04 per share. The following is a summary of the RSU activity during the three and six months ended June 30, 2022: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 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 June 30, 2022 294,932 — 294,932 Employee Stock Purchase Plan In addition to the share-based incentive plans, the Company maintains the Employee Stock Purchase Plan. A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2022 and 2021 is included in the table below. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2022 2021 2022 2021 Outstanding and exercisable, beginning of period 427,802 415,299 348,514 341,647 Granted — — 255,960 253,200 Exercised (1,965) (3,012) (12,518) (18,977) Forfeited (20,303) (22,873) (45,789) (42,034) Expired — — (140,633) (144,422) Outstanding and exercisable, end of period 405,534 389,414 405,534 389,414 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value. • Cash and cash equivalents - The carrying amount approximates fair value due to the short term maturity of these investments. • Borrowings under the Unsecured Credit Facility and the Term Loans Due 2024 and 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates. • Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. • Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates. The table below details the fair values and carrying values for notes and bonds payable at June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 2,063.8 $ 1,955.6 $ 1,801.3 $ 1,797.4 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 20, 2022, pursuant to that certain Agreement and Plan of Merger, dated as of February 28, 2022 (the “Merger Agreement”), by and among Healthcare Realty Trust Incorporated, a Maryland corporation (now known as HRTI, LLC, a Maryland limited liability company) (“Legacy HR” or the "Company"), Healthcare Trust of America, Inc., a Maryland corporation (now known as Healthcare Realty Trust Incorporated) (“Legacy HTA”), Healthcare Trust of America Holdings, LP, a Delaware limited partnership (now known as Healthcare Realty Holdings, L.P.) (the “OP”), and HR Acquisition 2, LLC, a Maryland limited liability company (“Merger Sub”). Pursuant to the Merger Agreement, on the Closing Date, Merger Sub merged with and into Legacy HR, with Legacy HR continuing as the surviving entity and a wholly-owned subsidiary of Legacy HTA (the “Merger”). Immediately following the Merger, Legacy HR converted to a Maryland limited liability company and changed its name to “HRTI, LLC” and Legacy HTA changed its name to “Healthcare Realty Trust Incorporated”. In addition, the equity interests of Legacy HR were contributed by Legacy HTA by means of a contribution and assignment agreement to the OP such that Legacy HR became a wholly-owned subsidiary of the OP. As a result, Legacy HR became a part of an umbrella partnership REIT (“UPREIT”) structure, which is intended to align the corporate structure of the combined company after giving effect to the Merger and the UPREIT reorganization (the “Combined Company”) and to provide a platform for the Combined Company to more efficiently acquire properties in a tax-deferred manner. The Combined Company operates under the name “Healthcare Realty Trust Incorporated” and its shares of class A common stock, $0.01 par value per share, trade on the New York Stock Exchange (the “NYSE”) under the ticker symbol “HR”. Executive Officers and Directors The executive officers of the Company immediately preceding the Merger serve as the executive officers of the Combined Company. The board of directors of the Combined Company is comprised of all nine directors from the Company's board and four directors from HTA’s board. Exchange Offer In connection with the Merger, the OP offered to exchange all validly tendered and accepted notes of each series previously issued by Legacy HR (the “Old HR Notes”) for (i) up to $250,000,000 of 3.875% Senior Notes due 2025 (the “2025 Notes”), (ii) up to $300,000,000 of 3.625% Senior Notes due 2028 (the “2028 Notes”), (iii) up to $300,000,000 of 2.400% Senior Notes due 2030 (the “2030 Notes”) and (iv) up to $300,000,000 of 2.050% Senior Notes due 2031 to be issued by the OP (the “2031 Notes” and, collectively, the “New HR Notes”) and solicited consents from holders of the Old HR Notes to amend the indenture governing the Old HR Notes to eliminate substantially all of the restrictive covenants in such indenture (the “Exchange Offers”). The New HR Notes were issued pursuant to an indenture dated July 22, 2022, among the OP, Legacy HTA and U.S. Bank Trust Company, National Association, as trustee, as supplemented by the first supplemental indenture, dated as of July 22, 2022, the second supplemental indenture, dated as of July 22, 2022, the third supplemental indenture, dated as of July 22, 2022 and the fourth supplemental indenture, dated as of July 22, 2022. Legacy HTA guaranteed the New HR Notes pursuant to (i) a guarantee of the 2025 Notes, (ii) a guarantee of the 2028 Notes, (iii) a guarantee of the 2030 Notes, and (iv) a guarantee of the 2031 Notes, each dated July 22, 2022. Legacy HTA and the OP filed a registration statement on Form S-4 (File No. 333-265593) relating to the issuance of the New HR Notes with the Securities and Exchange Commission (the “SEC”) on June 14, 2022, which was declared effective by the SEC on June 28, 2022. The following sets forth the results of the Exchange Offers: 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 % Credit Facilities In connection with the effectiveness of the Merger, Legacy HR (in a limited capacity), Legacy HTA and the OP entered into the Fourth Amended and Restated Credit and Term Loan Agreement (the “Credit Facility”) with Wells Fargo Bank, National Association, as Administrative Agent; Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., and Citibank, N.A., as Joint Book Runners; Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., U.S. Bank National Association, Citibank, N.A., The Bank of Nova Scotia, Capital One, National Association, U.S. Bank National Association, and PNC Capital Markets LLC, as Joint Lead Arrangers; and the other lenders named therein. The Credit Facility restructures the parties’ existing bank facilities and adds additional borrowing capacities for the Combined Company following the Merger. The OP is the borrower under the Credit Facility (in such capacity, the “Borrower”). • Legacy HR’s existing $700.0 million revolving credit facility under the Amended and Restated Credit Agreement, dated as of May 31, 2019 (as amended, restated, replaced, supplemented, or otherwise modified from time to time prior to July 20, 2022, the “Existing HR Revolving Credit Agreement”), by and among Legacy HR, the lenders party thereto from time to time and their assignees, as lenders, and Wells Fargo Bank, National Association, as the administrative agent (the “WF Administrative Agent”), was terminated, all outstanding obligations in respect thereof were deemed paid in full and all commitments thereunder were permanently reduced to zero and terminated. • Legacy HR’s existing $200.0 million term loan facility and existing $150.0 million term loan facility under the Amended and Restated Term Loan Agreement, dated as of May 31, 2019 (as amended, restated, replaced, supplemented, or otherwise modified from time to time prior to July 20, 2022, the “Existing HR Term Loan Agreement”), by and among Legacy HR, the lenders party thereto from time to time and their assignees, as lenders, and the WF Administrative Agent, in each, case, were deemed continued and assumed by the Borrower under the Credit Facility, and the Existing HR Term Loan Agreement was terminated. ◦ The existing $200.0 million term loan facility was amended to: (a) conform to the terms of the Borrower’s other term loan facilities under the Credit Facility; (b) include two one-year extension options, resulting in a latest final maturity in May 2026; and (c) reprice to align with the pricing for the Borrower’s other term loan facilities under the Credit Facility; and ◦ The existing $150.0 million term loan facility was amended to conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the existing maturity in June 2026 remains unchanged under the Credit Facility. • Legacy HTA’s and the OP’s existing $1.0 billion revolving credit facility was upsized to $1.5 billion (the “Revolver”) pursuant to the Credit Facility. The Revolver currently matures in October 2025, and the Credit Facility adds an additional one-year extension option for the Revolver, for a total of two one-year extension options. • Legacy HTA’s and the OP’s existing $300.0 million term loan facility was deemed continued pursuant to the Credit Facility and was amended to conform to the terms of the Borrower’s other term loan facilities under the Credit Facility. The existing maturity in October 2025 remains unchanged under the Credit Facility. • Legacy HTA’s and the OP’s existing $200.0 million term loan facility was deemed continued pursuant to the Credit Facility and was amended to (a) conform to the terms of the Borrower’s other term loan facilities under the Credit Facility; (b) extend the maturity from January 2024 to July 20, 2027; and (c) reprice to align with the pricing for the Borrower’s other term loan facilities under the Credit Facility. • The Credit Facility provides for a new $350.0 million delayed-draw term loan facility that is available to be drawn for 12 months after July 20, 2022 and has an initial maturity date of July 20, 2023, with two one-year extension options. The terms of any delayed draw term loans funded thereunder conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the pricing for such delayed draw term loans aligns with the pricing for the Borrower’s other term loan facilities under the Credit Facility. • The Credit Facility provides for a new $300.0 million term loan facility that was funded on July 20, 2022 and has a maturity of January 20, 2028, with no extension options. The terms of such term loan facility conform to the terms of the Borrower’s other term loan facilities under the Credit Facility, and the pricing for such term loan facility aligns with the pricing for the Borrower’s other term loan facilities under the Credit Facility. Special Dividend On May 13, 2022, Legacy HTA entered into a new $1.125 billion term loan agreement to fund the special dividend pursuant to the terms of the Merger Agreement. Prior to the Merger, Legacy HTA drew against the term loan to fund the special dividend of $4.82 that was declared on July 6, 2022 for shareholders of record on July 19, 2022. The special dividend was paid to all Legacy HTA shareholders on July 27, 2022. The Company plans to repay the term loan with proceeds from asset sales and joint ventures. As of the date of this report, the Company has closed on $433 million in joint ventures and asset sales. The remainder is expected to close in the third quarter of 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Business overview | Business OverviewHealthcare Realty Trust Incorporated is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. References to the Company in these Notes to the Condensed Consolidated Financial Statements are to Legacy HR as the "accounting acquiror" in the Merger defined and described in more detail in Note 9 to these Condensed Consolidated Financial Statements. As of June 30, 2022, the Company had gross investments of approximately $5.4 billion in 255 real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property. The Company's 255 real estate properties are located in 23 states and total approximately 17.2 million square feet. The Company provided leasing and property management services to approximately 15.4 million square feet nationwide. The Company owns 50% of an unconsolidated joint venture with Teachers Insurance and Annuity Association (the "TIAA Joint Venture") and earns certain fees as the managing member. As of June 30, 2022, the TIAA Joint Venture owned 21 real estate properties. See Note 2 for more details regarding the Company's unconsolidated joint ventures. Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the Company's Condensed Consolidated Financial Statements, are outside the scope of our independent registered public accounting firm’s review. |
Basis of presentation | Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2022 for many reasons including, but not limited to, the Merger (as discussed in more detail in Note 9 below), acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. |
Principles of consolidation | Principles of ConsolidationThe Company’s Condensed Consolidated Financial Statements include, as of June 30, 2022, the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. |
Variable Interest Entities | GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis.For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For any entity in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. As of June 30, 2022, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities. |
Use of estimates in the condensed consolidated financial statements | Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. |
Investments in Leases - Financing Receivables, Net | Investments in Leases - Financing Receivables, Net In accordance with Accounting Standards Codification ("ASC") 842, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC 310 “Receivables”. During the first quarter of 2022, the Company reclassified the two medical office buildings in Nashville, Tennessee that were acquired in separate sale-leaseback transactions in the fourth quarter of 2021. The leases with the sellers commenced in the first quarter, which resulted in the allocation of the financing receivable totaling $73.9 million to land and building and improvements. Income from Lease Financing Receivables The Company recognizes the related income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease agreement. Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. Amortization of these amounts will be recognized as a reduction to Income from financing receivable, net over the life of the lease. |
Revenue from contract with customers (topic 606) | Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. |
New accounting pronouncements | New Accounting Pronouncements Accounting Standards Update No. 2020-04 On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | Below is a detail of the amounts by category: THREE MONTHS ENDED SIX MONTHS ENDED in thousands 2022 2021 2022 2021 Type of Revenue Parking income $ 1,919 $ 1,880 $ 3,672 $ 3,538 Management fee income 1 783 419 1,438 658 Miscellaneous 36 128 103 182 $ 2,738 $ 2,427 $ 5,213 $ 4,378 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Acquisitions | The following table details the Company's acquisitions for the six months ended June 30, 2022: Dollars in thousands DATE ACQUIRED PURCHASE PRICE CASH 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 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 Total real estate acquisitions $ 285,937 $ 283,628 $ 270,296 $ 13,332 544,102 1 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 2 Excludes financing right of use assets. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 Includes two properties. Subsequent to June 30, 2022 and unrelated to the Merger, the Company acquired the following property: Dollars in thousands DATE ACQUIRED PURCHASE PRICE SQUARE FOOTAGE Seattle, WA 8/1/22 $ 4,850 10,593 |
Schedule of joint venture transactions | The following table details the TIAA Joint Venture acquisitions for the six months ended June 30, 2022: Dollars in thousands DATE ACQUIRED PURCHASE PRICE CASH 1 REAL 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 real estate acquisitions $ 100,975 $ 99,173 $ 97,569 $ 1,604 214,124 1 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 2 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 3 Includes three properties. 4 Includes two properties. |
Schedule of equity method investments | The Company's investment in and loss recognized for the three and six months ended June 30, 2022 and 2021 related to its joint ventures accounted for under the equity method are shown in the table below: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2022 2021 2022 2021 Investments in unconsolidated joint ventures, beginning of period 1 $ 211,195 $ 83,943 $ 161,942 $ 73,137 New investments during the period — 34,138 49,599 45,018 Equity loss recognized during the period 1 (307) (146) (652) (220) Owner Distributions (107) — (108) — Investments in unconsolidated joint ventures, end of period 1 $ 210,781 $ 117,935 $ 210,781 $ 117,935 1 In addition to the TIAA Joint Venture, the Company also has a 55% and 27% ownership interest, respectively, in two limited liability companies that each own a parking garage in Atlanta, Georgia. |
Real estate dispositions | The following table details the Company's dispositions for the six months ended June 30, 2022: Dollars in millions 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 Total dispositions $ 110,450 $ (2,317) $ 108,133 $ 54,476 $ 288 $ 53,369 351,814 1 Includes straight-line rent receivables, leasing commissions and lease inducements. 2 Includes two properties. |
Schedule of assets and liabilities held for sale | The table below reflects the assets and liabilities of the properties classified as held for sale as of June 30, 2022 and December 31, 2021: Dollars in thousands June 30, 2022 December 31, 2021 Other assets, net $ — $ 57 Assets held for sale, net $ — $ 57 Accounts payable and accrued liabilities $ — $ 169 Other liabilities — 125 Liabilities of assets held for sale $ — $ 294 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Future Minimum Operating Lease Payments Receivable | Future lease payments under the non-cancelable operating leases, excluding any reimbursements and the sale-type lease, as of June 30, 2022 were as follows: Dollars in thousands OPERATING 2022 $ 214,083 2023 398,689 2024 326,597 2025 269,308 2026 217,068 2027 and thereafter 566,038 $ 1,991,783 |
Future Minimum Operating Lease Payments | The Company’s future lease payments (primarily for its 67 non-prepaid ground leases) as of June 30, 2022 were as follows: Dollars in thousands OPERATING FINANCING 2022 $ 2,118 $ 735 2023 5,071 1,654 2024 5,130 1,692 2025 5,174 1,723 2026 5,201 1,749 2027 and thereafter 306,956 368,730 Total undiscounted lease payments 329,650 376,283 Discount (234,902) (314,088) Lease liabilities $ 94,748 $ 62,195 |
Future Minimum Financing Lease Payments | The Company’s future lease payments (primarily for its 67 non-prepaid ground leases) as of June 30, 2022 were as follows: Dollars in thousands OPERATING FINANCING 2022 $ 2,118 $ 735 2023 5,071 1,654 2024 5,130 1,692 2025 5,174 1,723 2026 5,201 1,749 2027 and thereafter 306,956 368,730 Total undiscounted lease payments 329,650 376,283 Discount (234,902) (314,088) Lease liabilities $ 94,748 $ 62,195 |
Lease Cost | The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2022 and 2021: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2022 2021 2022 2021 Operating lease cost Operating lease expense $ 1,194 $ 1,182 $ 2,409 $ 2,360 Variable lease expense 1,038 972 2,062 1,868 Finance lease cost Amortization of right-of-use assets 331 88 503 176 Interest on lease liabilities 765 247 1,052 493 Total lease expense $ 3,328 $ 2,489 $ 6,026 $ 4,897 Other information Operating cash flows outflows related to operating leases $ 1,799 $ 2,587 $ 4,596 $ 4,431 Operating cash flows outflows related to financing leases $ 509 $ — $ 767 $ — Financing cash flows outflows related to financing leases $ — $ 321 $ 51 $ 683 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ 40,589 $ — Weighted-average remaining lease term (excluding renewal options) - operating leases 47.4 48.1 Weighted-average remaining lease term (excluding renewal options) - finance leases 61.7 64.5 Weighted-average discount rate - operating leases 5.6 % 5.7 % Weighted-average discount rate - finance leases 5.0 % 5.4 % |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The table below details the Company’s notes and bonds payable as of June 30, 2022 and 2021. MATURITY DATES BALANCE AS OF EFFECTIVE INTEREST RATE Dollars in thousands 6/30/2022 12/31/2021 $700 million Unsecured Credit Facility 5/23 $ 490,500 $ 210,000 2.69 % $200 million Unsecured Term Loan due 2024, net of issuance costs 1 5/24 199,572 199,460 2.55 % $150 million Unsecured Term Loan due 2026, net of issuance costs 2 6/26 149,447 149,376 2.79 % Senior Notes due 2025, net of discount and issuance costs 3 5/25 249,176 249,040 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 296,864 296,612 3.84 % Senior Notes due 2030, net of discount and issuance costs 4 3/30 296,989 296,813 2.71 % Senior Notes due 2031, net of discount and issuance costs 3/31 295,601 295,374 2.24 % Mortgage notes payable, net of discounts and issuance costs and including premiums 8/23-12/26 85,606 104,650 3.97 % $ 2,063,755 $ 1,801,325 1 The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points). 2 The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 95 basis points). 3 The effective interest rate includes the impact of the $1.7 million settlement of forward-starting interest rate swaps that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of cash flow hedges included in accumulated other comprehensive income (loss) | As of June 30, 2022, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: DERIVATIVE INSTRUMENT NUMBER OF INSTRUMENTS NOTIONAL AMOUNT Interest rate swaps 8 $175.0 The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2022 and 2021 related to the Company's outstanding interest rate swaps. (GAIN) LOSS RECOGNIZED IN LOSS RECLASSIFIED FROM In thousands 2022 2021 2022 2021 Interest rate swaps $ (1,663) $ 807 Interest expense $ 674 $ 965 Settled treasury hedges — — Interest expense 107 107 Settled interest rate swaps — — Interest expense 42 42 $ (1,663) $ 807 Total interest expense $ 823 $ 1,114 GAIN RECOGNIZED IN LOSS RECLASSIFIED FROM In thousands 2022 2021 2022 2021 Interest rate swaps $ (6,822) $ (2,043) Interest expense $ 1,612 $ 1,912 Settled treasury hedges — — Interest expense 213 213 Settled interest rate swaps — — Interest expense 84 84 $ (6,822) $ (2,043) Total interest expense $ 1,909 $ 2,209 |
Schedule of derivative instruments in statement of financial position, fair value | The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of June 30, 2022. BALANCE AT JUNE 30, 2022 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps 2017, 2018, and 2019 Other assets $ 2,516 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Reconciliation of common stock outstanding | The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2022 and the twelve months ended December 31, 2021: SIX MONTHS ENDED JUNE 30, 2022 TWELVE MONTHS ENDED DECEMBER 31, 2021 Balance, beginning of period 150,457,433 139,487,375 Issuance of common stock 745,483 10,899,301 Non-vested share-based awards, net of withheld shares 434,001 70,757 Balance, end of period 151,636,917 150,457,433 |
At-the-market activity | The following table details the Company's forward at-the-market activity: WEIGHTED AVERAGE SALE PRICE FORWARD SHARE CONTRACTS SHARES SETTLED SHARES REMAINING TO BE SETTLED NET PROCEEDS Balance at December 31, 2021 $ — — — 727,400 $ — 1Q 2022 $ 31.73 — 727,400 — $ 22.3 2Q 2022 $ — — — — $ — |
Earnings (loss) per share | The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2022 and 2021. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, Dollars in thousands, except per share data 2022 2021 2022 2021 Weighted average common shares outstanding Weighted average common shares outstanding 151,620,897 143,700,491 151,230,064 142,142,577 Non-vested shares (1,945,042) (1,783,278) (1,908,652) (1,788,410) Weighted average common shares outstanding - basic 149,675,855 141,917,213 149,321,412 140,354,167 Weighted average common shares outstanding - basic 149,675,855 141,917,213 149,321,412 140,354,167 Dilutive effect of forward equity shares — 61,064 — 27,896 Dilutive effect of employee stock purchase plan 62,694 70,711 75,394 85,714 Weighted average common shares outstanding - diluted 149,738,549 142,048,988 149,396,806 140,467,777 Net Income $ 6,130 $ 23,096 $ 48,357 $ 47,118 Dividends paid on nonvested share-based awards (601) (539) (1,207) (1,080) Net income applicable to common stockholders $ 5,529 $ 22,557 $ 47,150 $ 46,038 Basic earnings per common share - net income $ 0.04 $ 0.16 $ 0.32 $ 0.33 Diluted earnings per common share - net income $ 0.04 $ 0.16 $ 0.32 $ 0.33 |
Summary of the activity under the incentive plan and restricted stock unit | A summary of the activity under the Company's share-based incentive plans for the three and six months ended June 30, 2022 and 2021 is included in the table below. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2022 2021 2022 2021 Share-based awards, beginning of period 1,951,551 1,786,371 1,562,028 1,766,061 Granted 26,840 37,978 442,024 203,701 Vested (36,682) (46,041) (61,047) (191,454) Forfeited — — (1,296) — Share-based awards, end of period 1,941,709 1,778,308 1,941,709 1,778,308 The following is a summary of the RSU activity during the three and six months ended June 30, 2022: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 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 June 30, 2022 294,932 — 294,932 |
Schedule of stock options, valuation assumptions | THREE MONTHS ENDED MARCH 31, Volatility 30.0 % Dividend assumption Accrued Expected term in years 3 years Risk-free rate 1.02 % Stock price (per share) $31.68 |
Summary of employee stock purchase plan activity | A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2022 and 2021 is included in the table below. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2022 2021 2022 2021 Outstanding and exercisable, beginning of period 427,802 415,299 348,514 341,647 Granted — — 255,960 253,200 Exercised (1,965) (3,012) (12,518) (18,977) Forfeited (20,303) (22,873) (45,789) (42,034) Expired — — (140,633) (144,422) Outstanding and exercisable, end of period 405,534 389,414 405,534 389,414 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value and carrying values for notes and bonds payable, mortgage notes receivable, and notes receivable | The table below details the fair values and carrying values for notes and bonds payable at June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 2,063.8 $ 1,955.6 $ 1,801.3 $ 1,797.4 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Schedule of Debt Exchange Offers | The following sets forth the results of the Exchange Offers: 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 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ft² in Millions, $ in Millions | Jun. 30, 2022 USD ($) ft² property building state | Dec. 31, 2021 building |
Business Overview: | ||
Gross investment amount, total | $ | $ 5,400 | |
Number of real estate properties | property | 255 | |
Number of states that the company owns real estate in, whole units | state | 23 | |
Approximate square feet invested in by company | ft² | 17.2 | |
Approximate square feet for which Nationwide property management services provided by company | ft² | 15.4 | |
Joint venture ownership (percent) | 50% | |
Number of buildings owned by joint venture with TIAA | building | 21 | |
Equity ownership for consolidation (percent) | 100% | |
Nashville, Tennessee | Medical office building | ||
Leases [Abstract] | ||
Number of buildings acquired in sale leaseback transactions | building | 2 | |
Buildings acquired in sale leaseback transactions | $ | $ 73.9 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | $ 2,738 | $ 2,427 | $ 5,213 | $ 4,378 |
Parking income | ||||
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | 1,919 | 1,880 | 3,672 | 3,538 |
Management fee income | ||||
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | 783 | 419 | 1,438 | 658 |
Miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | $ 36 | $ 128 | $ 103 | $ 182 |
Real Estate Investments - Acqui
Real Estate Investments - Acquisitions (Details) $ in Thousands | 6 Months Ended | |||||||||
Aug. 01, 2022 USD ($) ft² | Jun. 09, 2022 USD ($) ft² property | May 31, 2022 USD ($) ft² property | Apr. 29, 2022 USD ($) ft² property | Apr. 28, 2022 USD ($) ft² | Apr. 13, 2022 USD ($) ft² property | Apr. 07, 2022 USD ($) ft² | Mar. 07, 2022 USD ($) ft² property | Feb. 11, 2022 USD ($) ft² | Jun. 30, 2022 USD ($) ft² | |
Total real estate acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 285,937 | |||||||||
Cash consideration | 283,628 | |||||||||
Real estate | 270,296 | |||||||||
Other | $ 13,332 | |||||||||
Square footage | ft² | 544,102 | |||||||||
Dallas, TX | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 8,175 | |||||||||
Cash consideration | 8,185 | |||||||||
Real estate | 8,202 | |||||||||
Other | $ (17) | |||||||||
Square footage | ft² | 18,000 | |||||||||
San Francisco, CA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 114,000 | |||||||||
Cash consideration | 112,986 | |||||||||
Real estate | 108,687 | |||||||||
Other | $ 4,299 | |||||||||
Square footage | ft² | 166,396 | |||||||||
Number of properties acquired | property | 3 | |||||||||
Atlanta, GA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 6,912 | |||||||||
Cash consideration | 7,054 | |||||||||
Real estate | 7,178 | |||||||||
Other | $ (124) | |||||||||
Square footage | ft² | 21,535 | |||||||||
Denver, CO | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 6,320 | |||||||||
Cash consideration | 5,254 | |||||||||
Real estate | 5,269 | |||||||||
Other | $ (15) | |||||||||
Square footage | ft² | 12,207 | |||||||||
Colorado Springs, CO | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 13,680 | |||||||||
Cash consideration | 13,686 | |||||||||
Real estate | 13,701 | |||||||||
Other | $ (15) | |||||||||
Square footage | ft² | 25,800 | |||||||||
Number of properties acquired | property | 2 | |||||||||
Seattle, WA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 8,350 | |||||||||
Cash consideration | 8,334 | |||||||||
Real estate | 8,370 | |||||||||
Other | $ (36) | |||||||||
Square footage | ft² | 13,256 | |||||||||
Seattle, WA | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 4,850 | |||||||||
Square footage | ft² | 10,593 | |||||||||
Houston, TX | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 36,250 | |||||||||
Cash consideration | 36,299 | |||||||||
Real estate | 36,816 | |||||||||
Other | $ (517) | |||||||||
Square footage | ft² | 76,781 | |||||||||
Los Angeles, California | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 35,000 | |||||||||
Cash consideration | 35,242 | |||||||||
Real estate | 25,400 | |||||||||
Other | $ 9,842 | |||||||||
Square footage | ft² | 34,282 | |||||||||
Number of properties acquired | property | 2 | |||||||||
Oklahoma City, OK | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 11,100 | |||||||||
Cash consideration | 11,259 | |||||||||
Real estate | 11,334 | |||||||||
Other | $ (75) | |||||||||
Square footage | ft² | 34,944 | |||||||||
Raleigh, NC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 27,500 | |||||||||
Cash consideration | 26,710 | |||||||||
Real estate | 27,127 | |||||||||
Other | $ (417) | |||||||||
Square footage | ft² | 85,113 | |||||||||
Number of properties acquired | property | 3 | |||||||||
Tampa, FL | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 18,650 | |||||||||
Cash consideration | 18,619 | |||||||||
Real estate | 18,212 | |||||||||
Other | $ 407 | |||||||||
Square footage | ft² | 55,788 | |||||||||
Number of properties acquired | property | 2 |
Real Estate Investments - Uncon
Real Estate Investments - Unconsolidated Joint Venture Acquisitions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 29, 2022 property | Mar. 07, 2022 USD ($) ft² property | Jun. 30, 2022 USD ($) ft² | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) ft² property | Jun. 30, 2021 USD ($) | |
Real Estate [Line Items] | ||||||
Joint venture ownership (percent) | 50% | 50% | ||||
Equity Method Investments [Roll Forward] | ||||||
Investments in unconsolidated joint ventures, beginning of period | $ 161,942 | |||||
Equity loss recognized during the period | $ (307) | $ (146) | (652) | $ (220) | ||
Net LLC investments at the end of the period | 210,781 | 210,781 | ||||
San Francisco, CA | ||||||
Real Estate [Line Items] | ||||||
Number of properties acquired | property | 3 | |||||
Los Angeles, California | ||||||
Real Estate [Line Items] | ||||||
Number of properties acquired | property | 2 | |||||
Medical office building | ||||||
Real Estate [Line Items] | ||||||
Purchase Price | 100,975 | 100,975 | ||||
Cash Consideration | 99,173 | |||||
Real Estate | 97,569 | 97,569 | ||||
Other | $ 1,604 | $ 1,604 | ||||
Square Footage | ft² | 214,124 | 214,124 | ||||
Medical office building | San Francisco, CA | ||||||
Real Estate [Line Items] | ||||||
Purchase Price | $ 67,175 | |||||
Cash Consideration | 66,789 | |||||
Real Estate | 65,179 | |||||
Other | $ 1,610 | |||||
Square Footage | ft² | 110,865 | |||||
Joint venture ownership (percent) | 50% | |||||
Number of properties acquired | property | 3 | |||||
Medical office building | Los Angeles, California | ||||||
Real Estate [Line Items] | ||||||
Purchase Price | $ 33,800 | |||||
Cash Consideration | 32,384 | |||||
Real Estate | 32,390 | |||||
Other | $ (6) | |||||
Square Footage | ft² | 103,259 | |||||
Joint venture ownership (percent) | 50% | |||||
Number of properties acquired | property | 2 | |||||
Parking Garages | ||||||
Equity Method Investments [Roll Forward] | ||||||
Investments in unconsolidated joint ventures, beginning of period | $ 211,195 | 83,943 | $ 161,942 | 73,137 | ||
New investments during the period | 0 | 34,138 | 49,599 | 45,018 | ||
Equity loss recognized during the period | (307) | (146) | (652) | (220) | ||
Owner Distributions | (107) | 0 | (108) | 0 | ||
Net LLC investments at the end of the period | $ 210,781 | $ 117,935 | $ 210,781 | $ 117,935 | ||
Parking Garages | Atlanta, GA | ||||||
Real Estate [Line Items] | ||||||
Number of limited liability companies | property | 2 | |||||
Parking Garages | Atlanta, GA | Limited Liability Company One | ||||||
Real Estate [Line Items] | ||||||
Ownership interest in LLC (percent) | 55% | |||||
Parking Garages | Atlanta, GA | Limited Liability Company Two | ||||||
Real Estate [Line Items] | ||||||
Ownership interest in LLC (percent) | 27% |
Real Estate Investments - Dispo
Real Estate Investments - Dispositions (Details) $ in Thousands | 6 Months Ended | ||
Apr. 15, 2022 USD ($) ft² property | Feb. 24, 2022 USD ($) ft² property | Jun. 30, 2022 USD ($) ft² | |
Real Estate Dispositions | |||
Real Estate Dispositions [Line Items] | |||
SALE PRICE | $ 110,450 | ||
CLOSING ADJUSTMENTS | (2,317) | ||
NET PROCEEDS | 108,133 | ||
NET REAL ESTATE INVESTMENT | 54,476 | ||
Other (including receivables) | 288 | ||
GAIN/(IMPAIRMENT) | $ 53,369 | ||
SQUARE FOOTAGE | ft² | 351,814 | ||
Loveland, CO | |||
Real Estate Dispositions [Line Items] | |||
SALE PRICE | $ 84,950 | ||
CLOSING ADJUSTMENTS | 45 | ||
NET PROCEEDS | 84,905 | ||
NET REAL ESTATE INVESTMENT | 40,095 | ||
Other (including receivables) | 4 | ||
GAIN/(IMPAIRMENT) | $ 44,806 | ||
SQUARE FOOTAGE | ft² | 150,291 | ||
Number of properties acquired | property | 2 | ||
San Antonio, TX | |||
Real Estate Dispositions [Line Items] | |||
SALE PRICE | $ 25,500 | ||
CLOSING ADJUSTMENTS | 2,272 | ||
NET PROCEEDS | 23,228 | ||
NET REAL ESTATE INVESTMENT | 14,381 | ||
Other (including receivables) | 284 | ||
GAIN/(IMPAIRMENT) | $ 8,563 | ||
SQUARE FOOTAGE | ft² | 201,523 | ||
Number of properties acquired | property | 2 |
Real Estate Investments - Asset
Real Estate Investments - Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale, net | $ 0 | $ 57 |
Liabilities of assets held for sale | 0 | 294 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Other assets, net | 0 | 57 |
Assets held for sale, net | 0 | 57 |
Accounts payable and accrued liabilities | 0 | 169 |
Other liabilities | 0 | 125 |
Liabilities of assets held for sale | $ 0 | $ 294 |
Leases - Lease Income (Details)
Leases - Lease Income (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 30, 2022 USD ($) a | |
Lessee, Lease, Description [Line Items] | |||||
Rental income | $ 140,632 | $ 128,486 | $ 279,121 | $ 256,874 | |
Land held for development to other assets | $ 1,800 | ||||
Texas | Land Held For Devlopment | |||||
Lessee, Lease, Description [Line Items] | |||||
Joint venture, adjacent land parcel (acres) | a | 1.9 |
Leases - Lessor Accounting (Det
Leases - Lessor Accounting (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Future Operating Lease Payments Receivable [Abstract] | |
2022 | $ 214,083 |
2023 | 398,689 |
2024 | 326,597 |
2025 | 269,308 |
2026 | 217,068 |
2027 and thereafter | 566,038 |
Total | $ 1,991,783 |
Leases - Ground Leases (Details
Leases - Ground Leases (Details) ft² in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) property lease | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) ft² property lease | Jun. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Number of properties subject to ground leases | property | 108 | 108 | ||
Square feet subject to ground leases | ft² | 8.9 | |||
Number of prepaid ground leases | 41 | |||
Amortization of prepaid rent | $ | $ 0.1 | $ 0.2 | $ 0.3 | $ 0.3 |
Number of non-prepaid ground leases | 67 | 67 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Ground lease, initial term | 40 years | 40 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Ground lease, initial term | 99 years | 99 years |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
OPERATING | ||
2022 | $ 2,118 | |
2023 | 5,071 | |
2024 | 5,130 | |
2025 | 5,174 | |
2026 | 5,201 | |
2027 and thereafter | 306,956 | |
Total undiscounted lease payments | 329,650 | |
Discount | (234,902) | |
Lease liabilities | 94,748 | $ 96,138 |
FINANCING | ||
2022 | 735 | |
2023 | 1,654 | |
2024 | 1,692 | |
2025 | 1,723 | |
2026 | 1,749 | |
2027 and thereafter | 368,730 | |
Total undiscounted lease payments | 376,283 | |
Discount | (314,088) | |
Lease liabilities | $ 62,195 | $ 22,551 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating lease cost | ||||
Operating lease expense | $ 1,194 | $ 1,182 | $ 2,409 | $ 2,360 |
Variable lease expense | 1,038 | 972 | 2,062 | 1,868 |
Finance lease cost | ||||
Amortization of right-of-use assets | 331 | 88 | 503 | 176 |
Interest on lease liabilities | 765 | 247 | 1,052 | 493 |
Total lease expense | 3,328 | 2,489 | 6,026 | 4,897 |
Other information | ||||
Operating cash flows outflows related to operating leases | 1,799 | 2,587 | 4,596 | 4,431 |
Operating cash flows outflows related to financing leases | 509 | 0 | 767 | 0 |
Financing cash flows outflows related to financing leases | 0 | 321 | 51 | 683 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0 | $ 40,589 | $ 0 |
Weighted-average remaining lease term (excluding renewal options) - operating leases | 47 years 4 months 24 days | 48 years 1 month 6 days | 47 years 4 months 24 days | 48 years 1 month 6 days |
Weighted-average remaining lease term (excluding renewal options) - finance leases | 61 years 8 months 12 days | 64 years 6 months | 61 years 8 months 12 days | 64 years 6 months |
Weighted-average discount rate - operating leases | 5.60% | 5.70% | 5.60% | 5.70% |
Weighted-average discount rate - finance leases | 5% | 5.40% | 5% | 5.40% |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 24, 2022 | Feb. 18, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 2,063,755,000 | $ 2,063,755,000 | $ 1,801,325,000 | ||||
Impact of settlement of forward-starting interest rate swap | (1,663,000) | $ 807,000 | (6,822,000) | $ (2,043,000) | |||
Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.17% | 4.70% | |||||
Line of credit | $700 million Unsecured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 490,500,000 | $ 490,500,000 | 210,000,000 | ||||
Effective interest rate | 2.69% | 2.69% | |||||
Credit facility | $ 700,000,000 | $ 700,000,000 | |||||
Medium-term notes | $200 million Unsecured Term Loan due 2024, net of issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 199,572,000 | $ 199,572,000 | 199,460,000 | ||||
Effective interest rate | 2.55% | 2.55% | |||||
Term-loan facility | $ 200,000,000 | $ 200,000,000 | |||||
Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 149,447,000 | $ 149,447,000 | 149,376,000 | ||||
Effective interest rate | 2.79% | 2.79% | |||||
Term-loan facility | $ 150,000,000 | $ 150,000,000 | |||||
Senior notes | Senior Notes due 2025, net of discount and issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 249,176,000 | $ 249,176,000 | 249,040,000 | ||||
Effective interest rate | 4.08% | 4.08% | |||||
Senior notes | Senior Notes due 2028, net of discount and issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 296,864,000 | $ 296,864,000 | 296,612,000 | ||||
Effective interest rate | 3.84% | 3.84% | |||||
Senior notes | Senior notes due 2030, net of discount and issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 296,989,000 | $ 296,989,000 | 296,813,000 | ||||
Effective interest rate | 2.71% | 2.71% | |||||
Senior notes | Senior Notes due 2031, net of discount and issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 295,601,000 | $ 295,601,000 | 295,374,000 | ||||
Effective interest rate | 2.24% | 2.24% | |||||
Mortgages | Mortgage notes payable, net of discounts and issuance costs and including premiums | |||||||
Debt Instrument [Line Items] | |||||||
Notes and bonds payable | $ 85,606,000 | $ 85,606,000 | $ 104,650,000 | ||||
Effective interest rate | 3.97% | 3.97% | |||||
Settled interest rate swaps | |||||||
Debt Instrument [Line Items] | |||||||
Impact of settlement of forward-starting interest rate swap | $ (1,663,000) | $ 807,000 | $ (6,822,000) | $ (2,043,000) | |||
Settled interest rate swaps | Medium-term notes | $200 million Unsecured Term Loan due 2024, net of issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount | $ 75,000,000 | $ 75,000,000 | |||||
Weighted average interest rate (percent) | 2.37% | 2.37% | |||||
Basis spread on variable rate | 100% | ||||||
Settled interest rate swaps | Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount | $ 100,000,000 | $ 100,000,000 | |||||
Weighted average interest rate (percent) | 2.23% | 2.23% | |||||
Basis spread on variable rate | 95% | ||||||
Settled interest rate swaps | Senior notes | Senior Notes due 2025, net of discount and issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Impact of settlement of forward-starting interest rate swap | $ 1,700,000 | ||||||
Treasury lock | Senior notes | Senior Notes due 2025, net of discount and issuance costs | |||||||
Debt Instrument [Line Items] | |||||||
Impact of settlement of forward-starting interest rate swap | $ 4,300,000 |
Notes and Bonds Payable - Narra
Notes and Bonds Payable - Narrative (Details) - Mortgages $ in Millions | Feb. 24, 2022 USD ($) ft² | Feb. 18, 2022 USD ($) ft² |
Debt Disclosure [Abstract] | ||
Effective interest rate | 6.17% | 4.70% |
Debt Instrument [Line Items] | ||
Effective interest rate | 6.17% | 4.70% |
redemption price | $ 6.4 | $ 12.6 |
Outstanding principal repaid | 5.8 | 11 |
Make whole amount | 1.6 | |
Unamortized premium | 0.6 | 0.8 |
Write off upon payoff | $ 0.1 | $ 0.1 |
Los Angeles, CA | ||
Debt Instrument [Line Items] | ||
Encumbered square footage | ft² | 56,762 | |
Colorado Springs, CO | ||
Debt Instrument [Line Items] | ||
Encumbered square footage | ft² | 80,153 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details) $ in Millions | Jun. 30, 2022 USD ($) swap_agreement |
Derivative [Line Items] | |
Derivatives in net asset position | $ 2.4 |
Active Interest Rate Swap | |
Derivative [Line Items] | |
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | 1 |
Settled Interest Rate Swaps | |
Derivative [Line Items] | |
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | $ 0.6 |
Cash flow hedging | Designated as hedging instrument | Settled interest rate swaps | |
Derivative [Line Items] | |
Number of instruments | swap_agreement | 8 |
Notional amount | $ 175 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Other assets | Designated as hedging instrument | Interest rate swaps 2017, 2018, and 2019 | |
Derivative [Line Items] | |
Liability derivatives | $ 2,516 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | ||||
Loss recognized in AOCI on derivative | $ (1,663) | $ 807 | $ (6,822) | $ (2,043) |
(Gain) loss reclassified from AOCI into income | (823) | (1,114) | (1,909) | (2,209) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Loss recognized in AOCI on derivative | (1,663) | 807 | (6,822) | (2,043) |
Settled treasury hedges | ||||
Derivative [Line Items] | ||||
Loss recognized in AOCI on derivative | 0 | 0 | 0 | 0 |
Settled interest rate swaps | ||||
Derivative [Line Items] | ||||
Loss recognized in AOCI on derivative | 0 | 0 | 0 | 0 |
Interest expense | ||||
Derivative [Line Items] | ||||
(Gain) loss reclassified from AOCI into income | 823 | 1,114 | 1,909 | 2,209 |
Interest expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
(Gain) loss reclassified from AOCI into income | 674 | 965 | 1,612 | 1,912 |
Interest expense | Settled treasury hedges | ||||
Derivative [Line Items] | ||||
(Gain) loss reclassified from AOCI into income | 107 | 107 | 213 | 213 |
Interest expense | Settled interest rate swaps | ||||
Derivative [Line Items] | ||||
(Gain) loss reclassified from AOCI into income | $ 42 | $ 42 | $ 84 | $ 84 |
Commitments and Contingencies -
Commitments and Contingencies - Construction Activity (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 USD ($) | Sep. 30, 2023 ft² | Jun. 30, 2022 USD ($) ft² property | |
Other Commitments [Line Items] | |||
Number of real estate properties | property | 255 | ||
Medical office building | Dallas, TX | |||
Other Commitments [Line Items] | |||
Square footage of building under redevelopment | 217,114 | ||
Construction activity, total funding to date | $ | $ 10.2 | ||
Medical office building | Tacoma, WA | |||
Other Commitments [Line Items] | |||
Construction activity, total funding to date | $ | $ 9.5 | ||
Approximate square feet | 23,000 | ||
Medical office building | Nashville, TN | |||
Other Commitments [Line Items] | |||
Construction activity, total funding to date | $ | $ 7.4 | ||
Square footage of building to be demolished | 81,000 | ||
Impairment charge | $ | $ 5 | ||
Medical office building | Nashville, TN | Forecast | |||
Other Commitments [Line Items] | |||
Approximate square feet | 106,194 | ||
Medical office building | Washinton, DC | |||
Other Commitments [Line Items] | |||
Square footage of building under redevelopment | 158,338 | ||
Number of real estate properties | property | 2 | ||
Medical office building | Denver, CO | |||
Other Commitments [Line Items] | |||
Square footage of building under redevelopment | 93,992 | ||
Medical office building 2 | Dallas, TX | |||
Other Commitments [Line Items] | |||
Square footage of building under redevelopment | 145,365 | ||
Construction activity, total funding to date | $ | $ 0.6 | ||
Medical office building 2 | Washinton, DC | |||
Other Commitments [Line Items] | |||
Construction activity, total funding to date | $ | $ 0.1 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Beginning and Ending Common Stock Outstanding (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period (in shares) | 150,457,000 | |
Balance, end of period (in shares) | 151,637,000 | |
Common Stock | ||
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period (in shares) | 150,457,433 | 139,487,375 |
Issuance of common stock (in shares) | 745,483 | 10,899,301 |
Nonvested share-based awards, net of withheld shares (in shares) | 434,001 | 70,757 |
Balance, end of period (in shares) | 151,636,917 |
Stockholders' Equity - Equity O
Stockholders' Equity - Equity Offering Programs Earnings Per Share (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Nov. 05, 2021 property | Aug. 06, 2021 USD ($) property | |
Class of Stock [Line Items] | |||||||
Net proceeds from issuance of common stock | $ | $ 22,768,000 | $ 179,381,000 | |||||
At the Market Equity $750 Million Program | |||||||
Class of Stock [Line Items] | |||||||
Number of investment banks included in the program | property | 12 | 12 | |||||
At-the-market equity offering program, authorized amount | $ | $ 750,000,000 | ||||||
At the market equity offering program | |||||||
Class of Stock [Line Items] | |||||||
Shares issued during period, price per share (in dollars per share) | $ / shares | $ 0 | $ 31.73 | $ 0 | ||||
Priced shares sold on a forward basis (in shares) | shares | 0 | 0 | 0 | ||||
Settlement of shares sold on a forward basis (in shares) | shares | 0 | 727,400 | 0 | ||||
Shares sold on a forward basis remaining to be settled (in shares) | shares | 0 | 0 | 0 | 727,400 | |||
Net proceeds from issuance of common stock | $ | $ 0 | $ 22,300,000 | $ 0 |
Stockholders' Equity (Stock Tra
Stockholders' Equity (Stock Transactions - Narrative) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Aug. 02, 2022 $ / shares | Jul. 06, 2022 $ / shares | Jul. 01, 2022 $ / shares | Jan. 03, 2022 USD ($) shares | Jan. 31, 2022 $ / shares | Jun. 30, 2022 USD ($) property $ / shares shares | Mar. 31, 2022 USD ($) shares | Jun. 30, 2021 $ / shares shares | Jun. 30, 2022 property $ / shares shares | Jun. 30, 2021 $ / shares shares | |
Class of Stock [Line Items] | ||||||||||
Dividends paid per common share, during the period (in dollars per share) | $ / shares | $ 0.31 | $ 0.3025 | $ 0.62 | $ 0.6050 | ||||||
Award vesting period | 3 years | |||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 33.04 | |||||||||
At the market equity offering program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage of restricted stock units | 43% | |||||||||
Performance conditions | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage of restricted stock units | 57% | |||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 31.68 | |||||||||
Absolute TSR Component | ||||||||||
Class of Stock [Line Items] | ||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | 30.56 | |||||||||
Relative TSR Component | ||||||||||
Class of Stock [Line Items] | ||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 41.30 | |||||||||
Restricted stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Granted (in shares) | shares | 0 | 294,932 | ||||||||
Award vesting period | 5 years | |||||||||
Executive Incentive Program | Non-vested Stock Award | ||||||||||
Class of Stock [Line Items] | ||||||||||
Granted (in dollars per share) | $ | $ 13 | |||||||||
Granted (in shares) | shares | 415,184 | |||||||||
Executive Incentive Program | Non-vested Stock Award | Minimum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Executive Incentive Program | Non-vested Stock Award | Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award vesting period | 8 years | |||||||||
Executive Incentive Program | Restricted stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Granted (in dollars per share) | $ | $ 9.7 | |||||||||
Granted (in shares) | shares | 294,932 | |||||||||
Stock incentive plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Granted (in shares) | shares | 26,840 | 37,978 | 442,024 | 203,701 | ||||||
Stock incentive plan | Restricted stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares withheld to pay estimated withholding taxes (in shares) | shares | 6,727 | 51,972 | ||||||||
Stock incentive plan | Restricted stock | Directors | ||||||||||
Class of Stock [Line Items] | ||||||||||
Granted (in dollars per share) | $ | $ 0.8 | |||||||||
Award vesting period | 1 year | |||||||||
Number of directors | property | 8 | 8 | ||||||||
Shares issued during the period (in shares) | shares | 26,840 | |||||||||
Subsequent event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends declared per common share, during the period (in dollars per share) | $ / shares | $ 0.1090 | $ 4.82 | $ 0.2010 |
Stockholders' Equity - Computat
Stockholders' Equity - Computation of Basic and Diluted Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Weighted average Common Shares outstanding | ||||
Weighted average common shares outstanding (in shares) | 151,620,897 | 143,700,491 | 151,230,064 | 142,142,577 |
Non-vested shares (in shares) | (1,945,042) | (1,783,278) | (1,908,652) | (1,788,410) |
Weighted average common shares outstanding - basic (in shares) | 149,675,855 | 141,917,213 | 149,321,412 | 140,354,167 |
Dilutive effect of forward equity shares (in shares) | 0 | 61,064 | 0 | 27,896 |
Dilutive effect of employee stock purchase plan (in shares) | 62,694 | 70,711 | 75,394 | 85,714 |
Weighted average common shares outstanding - diluted (in shares) | 149,738,549 | 142,048,988 | 149,396,806 | 140,467,777 |
Net Income | $ 6,130 | $ 23,096 | $ 48,357 | $ 47,118 |
Dividends paid on nonvested share-based awards | (601) | (539) | (1,207) | (1,080) |
Net income applicable to common stockholders | $ 5,529 | $ 22,557 | $ 47,150 | $ 46,038 |
Basic earnings per common share - net income (in dollars per share) | $ 0.04 | $ 0.16 | $ 0.32 | $ 0.33 |
Diluted earnings per common share- net income (in dollars per share) | $ 0.04 | $ 0.16 | $ 0.32 | $ 0.33 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity under Stock-Based Incentive Plans and Restricted Stock Unit (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restricted stock | |||||
Summary of the activity under the incentive plans | |||||
Share-based awards, beginning of period (in shares) | 294,932 | 0 | 0 | ||
Granted (in shares) | 0 | 294,932 | |||
Vested (in shares) | 0 | 0 | |||
Share-based awards, ending of period (in shares) | 294,932 | 294,932 | 294,932 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Share-based awards, beginning of period, Weighted average grant date fair value | $ 0 | $ 0 | |||
Granted, Weighted average grant date fair value (in dollar per share) | 0 | 33.04 | |||
Vested, Weighted average grant date fair value (in dollar per share) | 0 | 0 | |||
Share-based awards, ending of period, Weighted average grant date fair value | $ 0 | $ 0 | |||
Stock incentive plan | |||||
Summary of the activity under the incentive plans | |||||
Share-based awards, beginning of period (in shares) | 1,951,551 | 1,562,028 | 1,786,371 | 1,562,028 | 1,766,061 |
Granted (in shares) | 26,840 | 37,978 | 442,024 | 203,701 | |
Vested (in shares) | (36,682) | (46,041) | (61,047) | (191,454) | |
Forfeited (in shares) | 0 | 0 | (1,296) | 0 | |
Share-based awards, ending of period (in shares) | 1,941,709 | 1,951,551 | 1,778,308 | 1,941,709 | 1,778,308 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Options, Valuation Assumptions (Details) | 1 Months Ended |
Jan. 31, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Volatility | 30% |
Expected term in years | 3 years |
Risk-free rate | 1.02% |
Stock price (in dollar per share) | $ 31.68 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activity under Employee Stock Purchase Plan (Details) - Employee stock purchase plan - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of the Employee Stock Purchase Plan activity | ||||
Outstanding and exercisable, beginning of period (in shares) | 427,802 | 415,299 | 348,514 | 341,647 |
Granted (in shares) | 0 | 0 | 255,960 | 253,200 |
Exercised (in shares) | (1,965) | (3,012) | (12,518) | (18,977) |
Forfeited (in shares) | (20,303) | (22,873) | (45,789) | (42,034) |
Expired (in shares) | 0 | 0 | (140,633) | (144,422) |
Outstanding and exercisable, end of period (in shares) | 405,534 | 389,414 | 405,534 | 389,414 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
CARRYING VALUE | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 2,063.8 | $ 1,801.3 |
FAIR VALUE | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,955.6 | $ 1,797.4 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) | Aug. 02, 2022 $ / shares | Jul. 20, 2022 USD ($) extension_option | Jul. 06, 2022 $ / shares | Jul. 01, 2022 $ / shares | Aug. 09, 2022 USD ($) | Jul. 22, 2022 | Jun. 30, 2022 USD ($) $ / shares | May 13, 2022 USD ($) | Feb. 28, 2022 director | Dec. 31, 2021 $ / shares |
Business Acquisition [Line Items] | ||||||||||
Common stock, par value (dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Number of board directors | director | 9 | |||||||||
Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Dividends declared per common share, during the period (in dollars per share) | $ / shares | $ 0.1090 | $ 4.82 | $ 0.2010 | |||||||
Subsequent event | Disposed of by Sale | Closed Joint Ventures and Asset Sales | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Joint ventures and assets sold | $ 433,000,000 | |||||||||
Amended and Restated Credit Agreement | Revolving Credit Facility | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt extinguished amount | $ 700,000,000 | |||||||||
Term Loan Facility Due May 2026 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt extinguished amount | 200,000,000 | |||||||||
Amended Term Loan Facility Due May 2026 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Term-loan facility | $ 200,000,000 | |||||||||
Number of extension options | extension_option | 2 | |||||||||
Extension option period | 1 year | |||||||||
Term Loan Facility Due June 2026 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt extinguished amount | $ 150,000,000 | |||||||||
Amended Term Loan Facility Due June 2026 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Term-loan facility | $ 150,000,000 | |||||||||
Credit Facility Maturing October 2025 | Revolving Credit Facility | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Credit facility | $ 1,000,000,000 | |||||||||
Credit Facility Maturing October 2025 | Revolving Credit Facility | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of extension options | extension_option | 2 | |||||||||
Credit facility | $ 1,500,000,000 | |||||||||
Term Loan Facility Due October 2025 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Credit facility | 300,000,000 | |||||||||
Term Loan Facility Due January 2024 - July 20, 2027 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Credit facility | $ 200,000,000 | |||||||||
Delayed Term Loan Facility due July 20, 2023 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of extension options | extension_option | 2 | |||||||||
Credit facility | $ 350,000,000 | |||||||||
Delayed credit facility, period available for draws | 12 months | |||||||||
Term Loan Facility Due January 20, 2028 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Credit facility | $ 300,000,000 | |||||||||
Term Loan Agreement to Fund Special Dividend | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Term-loan facility | $ 1,125,000,000 | |||||||||
Healthcare Trust Of America, Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common stock, par value (dollars per share) | $ / shares | $ 0.01 | |||||||||
Number of board directors | director | 4 | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2025 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 250,000,000 | |||||||||
Fixed interest rate (percent) | 3.875% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2025 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fixed interest rate (percent) | 3.875% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2028 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 300,000,000 | |||||||||
Fixed interest rate (percent) | 3.625% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2028 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fixed interest rate (percent) | 3.625% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2030 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 300,000,000 | |||||||||
Fixed interest rate (percent) | 2.40% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2030 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fixed interest rate (percent) | 2.40% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2031 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, validly tendered and accepted notes, exchange amount | $ 300,000,000 | |||||||||
Fixed interest rate (percent) | 2.05% | |||||||||
Healthcare Trust Of America, Inc | Senior Notes due 2031 | Subsequent event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fixed interest rate (percent) | 2.05% |
Subsequent Events - Summary of
Subsequent Events - Summary of Debt (Details) - Healthcare Trust Of America, Inc - USD ($) | Jul. 22, 2022 | Jun. 30, 2022 |
Senior Notes due 2025 | ||
Business Acquisition [Line Items] | ||
Fixed interest rate (percent) | 3.875% | |
Senior Notes due 2025 | Subsequent event | ||
Business Acquisition [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 235,016,000 | |
Fixed interest rate (percent) | 3.875% | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 94.01% | |
Senior Notes due 2028 | ||
Business Acquisition [Line Items] | ||
Fixed interest rate (percent) | 3.625% | |
Senior Notes due 2028 | Subsequent event | ||
Business Acquisition [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 290,246,000 | |
Fixed interest rate (percent) | 3.625% | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 96.75% | |
Senior Notes due 2030 | ||
Business Acquisition [Line Items] | ||
Fixed interest rate (percent) | 2.40% | |
Senior Notes due 2030 | Subsequent event | ||
Business Acquisition [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 297,507,000 | |
Fixed interest rate (percent) | 2.40% | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 99.17% | |
Senior Notes due 2031 | ||
Business Acquisition [Line Items] | ||
Fixed interest rate (percent) | 2.05% | |
Senior Notes due 2031 | Subsequent event | ||
Business Acquisition [Line Items] | ||
Tenders and Consents Received as of the Expiration Date | $ 298,858,000 | |
Fixed interest rate (percent) | 2.05% | |
Percentage of Total Outstanding Principal Amount of Such Series of Old HR Notes | 99.62% |