Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | Class A Common Stock, $0.01 par value per share | |
Trading Symbol | HR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 363,030,249 | |
Entity Central Index Key | 0001360604 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real estate properties | ||
Land | $ 1,287,532 | $ 1,343,265 |
Buildings and improvements | 10,436,218 | 10,881,373 |
Lease intangibles | 764,730 | 836,302 |
Personal property | 12,501 | 12,718 |
Investment in financing receivable, net | 122,413 | 122,602 |
Financing lease right-of-use assets | 81,401 | 82,209 |
Construction in progress | 97,732 | 60,727 |
Land held for development | 59,871 | 59,871 |
Total real estate properties | 12,862,398 | 13,399,067 |
Less accumulated depreciation and amortization | (2,427,709) | (2,226,853) |
Total real estate properties, net | 10,434,689 | 11,172,214 |
Cash and cash equivalents | 41,765 | 25,699 |
Assets held for sale, net | 34,530 | 8,834 |
Operating lease right-of-use assets | 261,976 | 275,975 |
Investments in unconsolidated joint ventures | 374,841 | 311,511 |
Goodwill | 0 | 250,530 |
Other assets, net | 655,826 | 592,368 |
Total assets | 11,803,627 | 12,637,131 |
Liabilities | ||
Notes and bonds payable | 5,148,153 | 4,994,859 |
Accounts payable and accrued liabilities | 195,884 | 211,994 |
Liabilities of assets held for sale | 1,805 | 295 |
Operating lease liabilities | 230,601 | 229,714 |
Financing lease liabilities | 75,199 | 74,503 |
Other liabilities | 177,293 | 202,984 |
Total liabilities | 5,828,935 | 5,714,349 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 3,875 | 3,868 |
Stockholders' equity | ||
Preferred stock, $.01 par value per share; 200,000 shares authorized; none issued and outstanding | 0 | 0 |
Class A Common stock, $.01 par value per share; 1,000,000 shares authorized; 364,327 and 380,964 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 3,643 | 3,810 |
Additional paid-in capital | 9,340,028 | 9,602,592 |
Accumulated other comprehensive income (loss) | 6,986 | (10,741) |
Cumulative net income attributable to common stockholders | 574,178 | 1,028,794 |
Cumulative dividends | (4,037,693) | (3,801,793) |
Total stockholders' equity | 5,887,142 | 6,822,662 |
Non-controlling interest | 83,675 | 96,252 |
Total equity | 5,970,817 | 6,918,914 |
Total liabilities and equity | $ 11,803,627 | $ 12,637,131 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 364,327,000 | 380,964,000 |
Common stock, outstanding (in shares) | 364,327,000 | 380,964,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Rental income | $ 308,135 | $ 329,680 | $ 626,211 | $ 653,773 |
Interest income | 3,865 | 4,233 | 8,403 | 8,448 |
Other operating | 4,322 | 4,230 | 8,513 | 8,847 |
Revenues | 316,322 | 338,143 | 643,127 | 671,068 |
Expenses | ||||
Property operating | 117,719 | 125,395 | 238,798 | 247,436 |
General and administrative | 14,002 | 15,464 | 28,788 | 30,399 |
Transaction costs | 431 | 669 | 826 | 956 |
Merger-related costs | 0 | (15,670) | 0 | (10,815) |
Depreciation and amortization | 173,477 | 183,193 | 351,596 | 367,671 |
Expenses | 305,629 | 309,051 | 620,008 | 635,647 |
Other income (expense) | ||||
Gain on sales of real estate properties and other assets | 38,338 | 7,156 | 38,360 | 8,162 |
Interest expense | (62,457) | (65,334) | (123,510) | (129,092) |
Impairment of real estate properties and credit loss reserves | (132,118) | (55,215) | (148,055) | (86,637) |
Impairment of goodwill | 0 | 0 | (250,530) | 0 |
Equity loss from unconsolidated joint ventures | (146) | (17) | (568) | (797) |
Interest and other (expense) income, net | (248) | 592 | 27 | 1,139 |
Total other income (expense) | (156,631) | (112,818) | (484,276) | (207,225) |
Net loss | (145,938) | (83,726) | (461,157) | (171,804) |
Net loss attributable to non-controlling interests | 2,158 | 967 | 6,541 | 1,920 |
Net loss attributable to common stockholders | $ (143,780) | $ (82,759) | $ (454,616) | $ (169,884) |
Basic earnings per common share (in dollars per share) | $ (0.39) | $ (0.22) | $ (1.22) | $ (0.45) |
Diluted earnings per common share (in dollars per share) | $ (0.39) | $ (0.22) | $ (1.22) | $ (0.45) |
Weighted average common shares outstanding - basic (in shares) | 372,477,299 | 378,896,677 | 375,962,033 | 378,860,631 |
Weighted average common shares outstanding - diluted (in shares) | 372,477,299 | 378,896,677 | 375,962,033 | 378,860,631 |
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] | Service [Member] | Service [Member] |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (145,938) | $ (83,726) | $ (461,157) | $ (171,804) |
Interest rate derivatives | ||||
Reclassification adjustments for gains included in interest expense | (3,662) | (3,419) | (7,528) | (5,703) |
Gains arising during the period on interest rate swaps | 5,891 | 21,523 | 25,501 | 12,981 |
Other comprehensive income | 2,229 | 18,104 | 17,973 | 7,278 |
Comprehensive loss | (143,709) | (65,622) | (443,184) | (164,526) |
Less: comprehensive loss attributable to non-controlling interests | 2,124 | 745 | 6,295 | 1,830 |
Comprehensive loss attributable to common stockholders | $ (141,585) | $ (64,877) | $ (436,889) | $ (162,696) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Cumulative Net Income | Cumulative Dividends | Non-controlling Interests |
Beginning balance at Dec. 31, 2022 | $ 7,679,818 | $ 7,571,076 | $ 3,806 | $ 9,587,637 | $ 2,140 | $ 1,307,055 | $ (3,329,562) | $ 108,742 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock redemptions | (1,596) | (1,596) | (1) | (1,595) | ||||
Share-based compensation | 8,916 | 8,916 | 3 | 8,913 | ||||
Issuance of common stock, net of issuance costs | 78 | 78 | 78 | |||||
Net loss | (171,804) | (169,884) | (169,884) | (1,920) | ||||
Reclassification adjustments for gains included in net income (interest expense) | (5,703) | (5,635) | (5,635) | (68) | ||||
Gains arising during the period on interest rate swaps | 12,981 | 12,823 | 12,823 | 158 | ||||
Dividends to common stockholders and distributions to non-controlling interest holders | (239,273) | (236,379) | (236,379) | (2,894) | ||||
Ending balance at Jun. 30, 2023 | 7,283,417 | 7,179,399 | 3,808 | 9,595,033 | 9,328 | 1,137,171 | (3,565,941) | 104,018 |
Redeemable Non-controlling Interests, beginning balance at Dec. 31, 2022 | 2,014 | |||||||
Redeemable Non-controlling Interests | ||||||||
Contributions from redeemable non-controlling interests | 473 | |||||||
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2023 | 2,487 | |||||||
Beginning balance at Mar. 31, 2023 | 7,464,839 | 7,358,628 | 3,808 | 9,591,194 | (8,554) | 1,219,930 | (3,447,750) | 106,211 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock redemptions | (112) | (112) | (112) | |||||
Share-based compensation | 3,924 | 3,924 | 3,924 | |||||
Issuance of common stock, net of issuance costs | 27 | 27 | 27 | |||||
Net loss | (83,726) | (82,759) | (82,759) | (967) | ||||
Reclassification adjustments for gains included in net income (interest expense) | (3,419) | (3,377) | (3,377) | (42) | ||||
Gains arising during the period on interest rate swaps | 21,523 | 21,259 | 21,259 | 264 | ||||
Dividends to common stockholders and distributions to non-controlling interest holders | (119,639) | (118,191) | (118,191) | (1,448) | ||||
Ending balance at Jun. 30, 2023 | 7,283,417 | 7,179,399 | 3,808 | 9,595,033 | 9,328 | 1,137,171 | (3,565,941) | 104,018 |
Redeemable Non-controlling Interests, beginning balance at Mar. 31, 2023 | 2,000 | |||||||
Redeemable Non-controlling Interests | ||||||||
Contributions from redeemable non-controlling interests | 487 | |||||||
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2023 | 2,487 | |||||||
Beginning balance at Dec. 31, 2023 | 6,918,914 | 6,822,662 | 3,810 | 9,602,592 | (10,741) | 1,028,794 | (3,801,793) | 96,252 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock redemptions | (138) | (138) | (138) | |||||
Share-based compensation | 6,944 | 6,944 | 3 | 6,941 | ||||
Common stock repurchases | (273,053) | (273,053) | (172) | (272,881) | ||||
Issuance of common stock, net of issuance costs | 104 | 104 | 104 | |||||
Conversion of OP Units to common stock | 0 | 3,412 | 2 | 3,410 | (3,412) | |||
Net loss | (461,157) | (454,616) | (454,616) | (6,541) | ||||
Reclassification adjustments for gains included in net income (interest expense) | (7,528) | (7,424) | (7,424) | (104) | ||||
Gains arising during the period on interest rate swaps | 25,501 | 25,151 | 25,151 | 350 | ||||
Dividends to common stockholders and distributions to non-controlling interest holders | (238,770) | (235,900) | (235,900) | (2,870) | ||||
Ending balance at Jun. 30, 2024 | 5,970,817 | 5,887,142 | 3,643 | 9,340,028 | 6,986 | 574,178 | (4,037,693) | 83,675 |
Redeemable Non-controlling Interests, beginning balance at Dec. 31, 2023 | 3,868 | |||||||
Redeemable Non-controlling Interests | ||||||||
Contributions from redeemable non-controlling interests | 13 | |||||||
Adjustments to redemption value of redeemable non-controlling interests | (6) | |||||||
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2024 | 3,875 | |||||||
Beginning balance at Mar. 31, 2024 | 6,503,138 | 6,415,895 | 3,815 | 9,609,530 | 4,791 | 717,958 | (3,920,199) | 87,243 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock redemptions | (3) | (3) | (3) | |||||
Share-based compensation | 3,382 | 3,382 | 3,382 | |||||
Common stock repurchases | (273,053) | (273,053) | (172) | (272,881) | ||||
Net loss | (145,938) | (143,780) | (143,780) | (2,158) | ||||
Reclassification adjustments for gains included in net income (interest expense) | (3,662) | (3,611) | (3,611) | (51) | ||||
Gains arising during the period on interest rate swaps | 5,891 | 5,806 | 5,806 | 85 | ||||
Dividends to common stockholders and distributions to non-controlling interest holders | (118,938) | (117,494) | (117,494) | (1,444) | ||||
Ending balance at Jun. 30, 2024 | 5,970,817 | $ 5,887,142 | $ 3,643 | $ 9,340,028 | $ 6,986 | $ 574,178 | $ (4,037,693) | $ 83,675 |
Redeemable Non-controlling Interests, beginning balance at Mar. 31, 2024 | 3,880 | |||||||
Redeemable Non-controlling Interests | ||||||||
Adjustments to redemption value of redeemable non-controlling interests | (5) | |||||||
Redeemable Non-controlling Interests, ending balance at Jun. 30, 2024 | $ 3,875 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends to common stockholders and distributions to non-controlling interest holders (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.62 | $ 0.62 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING ACTIVITIES | ||
Net loss | $ (461,157) | $ (171,804) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 351,596 | 367,671 |
Other amortization | 23,390 | 23,405 |
Share-based compensation | 6,944 | 8,916 |
Amortization of straight-line rent receivable (lessor) | (14,198) | (19,313) |
Amortization of straight-line rent on operating leases (lessee) | 1,998 | 3,062 |
Gain on sales of real estate properties and other assets | (38,360) | (8,162) |
Impairment of real estate properties and credit loss reserves | 148,055 | 86,637 |
Impairment of goodwill | 250,530 | 0 |
Equity loss from unconsolidated joint ventures | 568 | 797 |
Distributions from unconsolidated joint ventures | 2,649 | 3,031 |
Non-cash interest from financing and notes receivable | (478) | (488) |
Changes in operating assets and liabilities: | ||
Other assets, including right-of-use-assets | (4,257) | (17,502) |
Accounts payable and accrued liabilities | (23,131) | (38,601) |
Other liabilities | 155 | 16,673 |
Net cash provided by operating activities | 244,304 | 254,322 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | 0 | (39,301) |
Development of real estate | (31,901) | (17,594) |
Additional long-lived assets | (117,775) | (94,013) |
Funding of mortgages and notes receivable | (3,466) | (11,503) |
Investments in unconsolidated joint ventures | 0 | (3,824) |
Investment in financing receivable | (780) | |
Investment in financing receivable | 475 | |
Contributions from redeemable non-controlling interests | 13 | 0 |
Proceeds from sales of real estate properties and additional long-lived assets | 303,475 | 160,870 |
Proceeds from notes receivable repayments | 567 | 0 |
Net cash provided by (used in) investing activities | 151,388 | (6,145) |
FINANCING ACTIVITIES | ||
Net borrowings (repayments) on unsecured credit facility | 250,000 | (31,000) |
Repayment on term loan | (100,000) | 0 |
Repayments of notes and bonds payable | (17,746) | (1,340) |
Dividends paid | (235,618) | (236,105) |
Net proceeds from issuance of common stock | 104 | 77 |
Common stock redemptions | (321) | (1,842) |
Common stock repurchases | (273,053) | 0 |
Distributions to non-controlling interest holders | (2,399) | (2,546) |
Debt issuance and assumption costs | (563) | (438) |
Payments made on finance leases | (30) | (40) |
Net cash used in financing activities | (379,626) | (273,234) |
Increase (decrease) in cash and cash equivalents | 16,066 | (25,057) |
Cash and cash equivalents at beginning of period | 25,699 | 60,961 |
Cash and cash equivalents at end of period | 41,765 | 35,904 |
Supplemental Cash Flow Information | ||
Interest paid | 103,708 | 106,985 |
Mortgage note receivables taken in connection with sale of real estate | 0 | 45,000 |
Invoices accrued for construction, tenant improvements and other capitalized costs | 39,016 | 30,956 |
Capitalized interest | 1,916 | 1,282 |
Proceeds from dispositions held in escrow | 96,008 | 0 |
Contribution of real estate properties into unconsolidated joint venture | $ 66,547 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business Overview Healthcare Realty Trust Incorporated (the "Company") 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. As of June 30, 2024, the Company had gross investments of approximately $12.9 billion in 629 con solidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding held for sale assets. In addition, as of June 30, 2024, the Company had a weighted average ownership interest of approxima tel y 36% in 44 re al estate properties held in unconsolidated joint ventures. See Note 2 below for more details regarding the Company's unconsolidated joint ventures. The Company's re al estate properties are located in 35 states and total approxima tel y 37.2 million square feet. The Company provided leasing and property management services to 92% of its portfolio nationwide as of June 30, 2024. On July 20, 2022, pursuant to that certain Agreement and Plan of Merger dated as of February 28, 2022, by and among Healthcare Realty Trust Incorporated, a Maryland corporation (now known as HRTI, LLC, a Maryland limited liability company) (“Legacy HR”), 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”), 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”). 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 under the ticker symbol “HR”. The Company is structured as an umbrella partnership REIT under which substantially all of its business is conducted through the OP, the day-to-day management of which is exclusively controlled by the Company. As of June 30, 2024, the Company owned 98.6% of the issued and outstanding units of the OP, with other investors owning the remaining 1.4% of the OP's issued and outstanding units. 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. 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, 2023. 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, 2024 for many reasons including, but not limited to, 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 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 (“ASC”) Topic 810, Consolidation 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, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Condensed Consolidated Financial Statements. 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, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance. 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 entities 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. The OP is 98.6% owned by the Company. Other holders of operating partnership units (“OP Units”) are considered to be non-controlling interest holders in the OP and their ownership interests are reflected as equity on the accompanying Condensed Consolidated Balance Sheets. Further, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity. As of June 30, 2024, there were approximately 5.3 million OP Units, or 1.4% of OP Units issued and outstanding, held by non-controlling interest holders. Additionally, the Company is the primary beneficiary of this VIE. Accordingly, the Company consolidates its interests in the OP. As of June 30, 2024, the Company had four consolidated VIEs, in addition to the OP, consisting of joint venture investments in which the Company is the primary beneficiary of the VIE based on the combination of operational control and the rights to receive residual returns or the obligation to absorb losses arising from the joint ventures. Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate: (dollars in thousands) JUNE 30, 2024 Assets: Total real estate properties, net $ 112,694 Cash and cash equivalents 3,205 Other assets, net 2,556 Total assets $ 118,455 Liabilities: Accrued expenses and other liabilities 7,848 Total liabilities 7,848 Redeemable non-controlling interests 3,194 Partners' equity 108,612 Cumulative net loss (1,199) Total partners' equity 107,413 Total liabilities and equity $ 118,455 As of June 30, 2024, the Company had three unconsolidated VIEs consisting of two notes receivables and one joint venture. The Company does not have the power or economic interests to direct the activities of these VIEs on a stand-alone basis, and therefore it was determined that the Company was not the primary beneficiary. As a result, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs. (dollars in thousands) ORIGINATION DATE LOCATION SOURCE CARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS 2021 Houston, TX 1 Note receivable $ 20,500 $ 20,500 2021 Charlotte, NC 1 Note receivable 7,111 7,211 2022 Texas 2 Joint venture 59,239 59,239 1 Assumed mortgage note receivable in connection with the Merger. 2 Includes investments in seven properties. As of June 30, 2024, 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 below 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. Redeemable Non-Controlling Interests The Company accounts for redeemable equity securities in accordance with ASC Topic 480: Accounting for Redeemable Equity Instruments, which requires that equity securities redeemable at the option of the holder, not solely within our control, be classified outside permanent stockholders’ equity. The Company classifies redeemable equity securities as redeemable non-controlling interests in the accompanying Condensed Consolidated Balance Sheets. Accordingly, the Company records the carrying amount at the greater of the initial carrying amount (increased or decreased for the non-controlling interest’s share of net income or loss and distributions) or the redemption value. We measure the redemption value and record an adjustment to the carrying value of the equity securities as a component of redeemable non-controlling interest. As of June 30, 2024, the Company had redeemable non-controlling interests of $3.9 million. Asset Impairment The Company assesses the potential for impairment of identifiable, definite-lived, intangible assets and long-lived assets, including real estate properties, whenever the occurrence of an event or a change in circumstances indicates that the carrying value might not be fully recoverable. Indicators of impairment may include significant underperformance of an asset relative to historical or expected operating results; significant changes in the Company’s use of assets or the strategy for its overall business; plans to sell an asset before its depreciable life has ended; the expiration of a significant portion of leases in a property; or significant negative economic trends or negative industry trends for the Company or its tenants. During the three and six months ended June 30, 2024, the Company recognized real estate impairments totaling $120.9 million and $136.9 million, respectively, as a result of completed and planned disposition activity. As of June 30, 2024, 16 real estate properties totaling $265.6 million were measured at fair value using level 3 fair value hierarchy. The level 3 fair value techniques included brokerage estimates, letters of intent, and unexecuted purchase and sale agreements, less estimated closing costs. Goodwill Impairment During the first quarter of 2024, the Company experienced a sustained decline in the price per share of its common stock, which was identified as an indicator of goodwill impairment. As a result, a goodwill evaluation was performed. The Company's current operations are carried out through a single reporting unit with a carrying value of approximately $12.0 billion. The Company determined that the carrying value exceeded estimated fair value and therefore an impairment of goodwill was recorded. The Company recorded a $250.5 million full impairment of its goodwill, which is recorded as a non-cash charge in “Impairment of goodwill” in the Condensed Consolidated Statements of Operations. Investments in Leases - Financing Receivables, Net In accordance with ASC Topic 842: Leases, 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 Topic 310: Receivables. See below for additional information regarding the Company's financing receivables. (dollars in thousands) ORIGINATION DATE LOCATION INTEREST RATE CARRYING VALUE as of JUNE 30, 2024 May 2021 Poway, CA 5.72% $ 115,056 November 2021 Columbus, OH 6.48% 7,357 $ 122,413 Real Estate Notes Receivable Real estate notes receivable consists of mezzanine and other real estate loans, which are generally collateralized by a pledge of the borrower’s ownership interest in the respective real estate owner, a mortgage or deed of trust, and/or corporate guarantees. Real estate notes receivable are intended to be held to maturity and are recorded at amortized cost, net of unamortized loan origination costs and fees and allowance for credit losses. As of June 30, 2024, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totaled $168.8 million. (dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of INTEREST RECEIVABLE (OTHER ASSETS) ALLOWANCE FOR CREDIT LOSSES FAIR VALUE DISCOUNT AND FEES CARRYING VALUE as of JUNE 30, 2024 Mezzanine loans Texas 1 6/24/2021 6/24/2024 8.00 % $ 54,119 $ 54,119 $ 906 $ (5,196) $ (3,067) $ 46,762 Arizona 12/21/2023 12/20/2026 9.00 % 6,000 6,000 36 — — 6,036 60,119 60,119 942 (5,196) (3,067) 52,798 Mortgage loans Texas 2 6/30/2021 12/02/2024 7.00 % 31,150 31,150 551 (11,201) — 20,500 North Carolina 3 12/22/2021 12/22/2024 8.00 % 6,000 6,000 1,211 — (100) 7,111 Florida 5/17/2022 2/27/2026 6.00 % 65,000 35,623 532 — (34) 36,121 California 3/30/2023 3/29/2026 6.00 % 45,000 45,000 178 — — 45,178 Florida 12/28/2023 12/28/2026 9.00 % 7,700 7,133 — — — 7,133 154,850 124,906 2,472 (11,201) (134) 116,043 $ 214,969 $ 185,025 $ 3,414 $ (16,397) $ (3,201) $ 168,841 1 As of the date of these financial statements, the outstanding principal and interest on these loans had not been repaid, and on July 15, 2024, the senior lender on the construction loans associated with the underlying projects provided notice of foreclosure proceedings to the borrower. The borrower is in negotiations with a third party to provide financing that will repay the senior lender. 2 During the second quarter of 2024, the Company determined that an allowance for credit loss of $11.2 million was needed on this mortgage loan. The reserve amount consists of approximately $10.7 million of principal and approximately $0.5 million of interest. Additionally, the maturity date on this mortgage loan was extended to December 2, 2024. 3 Outstanding principal and interest due upon maturity. Allowance for Credit Losses Pursuant to ASC Topic 326: Financial Instruments - Credit Losses, the Company adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under ASC Topic 326. The Company utilizes a probability of default method approach for estimating current expected credit losses and evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, credit enhancements, liquidity, and other factors. The determination of the credit allowance is based on a quarterly evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan payments. The Company evaluates the collectability of loan receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral. A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that the Company will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement. For those loans identified as having deteriorated credit quality, the amount of credit loss is determined on an individual basis. Placement on non-accrual status may be required. Consistent with this definition, all loans on non-accrual status are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, the loan may return to income accrual status. While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance. During the first quarter of 2023, the Company determined that the risk of credit loss on two of its mezzanine loans were no longer remote and recorded a credit loss reserve of $5.2 million. During the three and six months ended June 30, 2024, the Company determined that the risk of credit loss on one of its mortgage note receivables was no longer remote and recorded a credit loss reserve of $11.2 million. The Company utilized the level 3 fair value hierarchy, which included a brokerage estimate on the underlying collateral of the loan, to determine the amount of credit loss reserve. The following table summarizes the Company's allowance for credit losses on real estate notes receivable: Dollars in thousands SIX MONTHS ENDED JUNE 30, 2024 TWELVE MONTHS ENDED DECEMBER 31, 2023 Allowance for credit losses, beginning of period $ 5,196 $ — Credit loss reserves 11,201 5,196 Allowance for credit losses, end of period $ 16,397 $ 5,196 Interest Income Income from Lease Financing Receivables The Company recognized the related income from two financing receivables totaling $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2024, and $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2023, based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable in any particular period will not equal the cash payments from the lease agreement in that period. 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 Interest income over the life of the lease. Income from Real Estate Notes Receivable The Company recognized interest income related to real estate notes receivable of $1.8 million and $4.2 million, respectively, for the three and six months ended June 30, 2024, and $2.2 million and $4.3 million, respectively, for the three and six months ended June 30, 2023. The Company recognizes interest income on an accrual basis unless the Company has determined that collectability of contractual amounts is not reasonably assured, at which point the note is placed on non-accrual status and interest income is recognized on a cash basis. In 2023, the Company placed two of its real estate notes receivable with principal balances, net of credit loss, of $48.9 million on non-accrual status and accordingly did not recognize any interest income for the three and six month periods ended June 30, 2024. In 2024, the Company placed one of its real estate notes receivable with a principal balance, net of credit loss, of $20.5 million on non-accrual status. Revenue from Contracts with Customers (ASC Topic 606) The Company recognizes certain revenue under the core principle of ASC 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 ASC Topic 606. To achieve the core principle, the Company applies the five-step model specified in the guidance. Revenue that is accounted for under ASC Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Operations 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 2024 2023 2024 2023 Type of Revenue Parking income $ 2,463 $ 2,370 $ 5,009 $ 4,761 Management fee income/other 1 1,859 1,860 3,504 4,086 $ 4,322 $ 4,230 $ 8,513 $ 8,847 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 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting ( Topic 280) . Some of the main provisions of this update to segment reporting include; (i) a requirement to disclose significant segment expenses, on an annual and interim basis, that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; (ii) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (iii) a requirement that an entity that has a single reportable segment provide all the disclosures required by the amendments in this update. |
Real Estate Investments
Real Estate Investments | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Real Estate Investments | Real Estate Investments 2024 Acquisition Activity The Company had no real estate acquisition activity for the six months ended June 30, 2024. Unconsolidated Joint Ventures The Company's investment in and loss recognized for the three and six months ended June 30, 2024 and 2023 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2024 2023 2024 2023 Investments in unconsolidated joint ventures, beginning of period $ 309,754 $ 327,746 $ 311,511 $ 327,248 New investment during the period 1 66,547 — 66,547 3,824 Equity loss recognized during the period (146) (17) (568) (797) Owner distributions (1,314) (484) (2,649) (3,030) Investments in unconsolidated joint ventures, end of period $ 374,841 $ 327,245 $ 374,841 $ 327,245 1 In the second quarter of 2024, the Company contributed 11 properties into a new joint venture in which it retained a 20% ownership interest. See 2024 "Real Estate Asset Dispositions" below for additional information. In 2023, there was an additional investment in an existing joint venture in which the Company retained a 40% ownership interest. The investment consisted of the Company's contribution of a property in Dallas, Texas to the joint venture. 2024 Real Estate Asset Dispositions The following table details the Company's dispositions and joint venture contributions for the six months ended June 30, 2024. Dollars in thousands DATE DISPOSED SALE PRICE CLOSING ADJUSTMENTS NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER (INCLUDING RECEIVABLES) GAIN/(IMPAIRMENT) SQUARE FOOTAGE Albany, NY 4/1/24 $ 725 $ (60) $ 665 $ 765 $ (82) $ (18) 14,800 San Angelo, TX 4/12/24 5,085 (128) 4,957 4,917 66 (26) 24,580 Houston, TX 5/20/24 250 (9) 241 713 (520) 48 37,040 Multiple 1 5/23/24 284,348 (14,270) 270,078 254,176 25,836 (9,934) 556,274 Denver, CO 5/30/24 19,000 (628) 18,372 18,522 165 (315) 37,130 Austin, TX 1 6/6/24 54,858 (1,575) 53,283 27,964 623 24,696 129,879 Minneapolis, MN 6/21/24 1,082 (144) 938 303 43 592 50,291 Greensboro/Raleigh, NC 2, 3 6/28/24 99,518 (2,835) 96,683 86,810 906 8,967 309,424 Total dispositions $ 464,866 $ (19,649) $ 445,217 $ 394,170 $ 27,037 $ 24,010 1,159,418 1 The Company contributed the following medical outpatient properties to a joint venture in which the Company retained 20% ownership: one in each of Raleigh, NC, New York, NY, Philadelphia, PA, Atlanta, GA and Austin, TX; two medical outpatient properties in Los Angeles and four in Seattle, WA. Sale price and square footage reflect the total sale price paid by the joint venture and total square footage of the property. The net proceeds to the Company related to these dispositions totaled $256.8 million. 2 The Company sold seven medical outpatient properties in Greensboro, NC and two medical outpatient properties in Raleigh, NC to a single buyer in a single transaction. 3 The amount in the net proceeds column for this portfolio disposition includes the receivable for the cash held in escrow that closed on June 28, 2024 and was received by the Company on July 1, 2024. These proceeds were recorded as a receivable in other assets, net as of June 30, 2024. Assets Held for Sale The Company had three properties classified as assets held for sale as of June 30, 2024 and one property classified as assets held for sale as of December 31, 2023. The table below reflects the assets and liabilities classified as held for sale as of June 30, 2024 and December 31, 2023: Dollars in thousands June 30, 2024 December 31, 2023 Balance Sheet data: Land $ 2,330 $ 1,850 Building and improvements 43,342 6,779 Lease intangibles 1,017 1,017 46,689 9,646 Accumulated depreciation (13,600) (913) Real estate assets held for sale, net 33,089 8,733 Cash and cash equivalents — — Operating lease right-of-use assets 850 — Other assets, net 591 101 Assets held for sale, net $ 34,530 $ 8,834 Accounts payable and accrued liabilities $ 531 $ 23 Operating lease liabilities 589 — Other liabilities 685 272 Liabilities of assets held for sale $ 1,805 $ 295 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide tenants with fixed rent renewal terms while others have 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, 2024 was $308.1 million and $626.2 million, respectively. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2023 was $329.7 million and $653.8 million, respectively. Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sale-type lease, as of June 30, 2024 were as follows: Dollars in thousands OPERATING 2024 $ 441,170 2025 827,950 2026 734,851 2027 614,428 2028 500,591 2029 and thereafter 1,629,794 $ 4,748,784 Lessee Accounting As of June 30, 2024, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2024, the Company had 221 properties totaling 16.5 million square feet that were held under ground leases. Some of the Company's 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 stated in the lease or based on CPI. The Company had 73 prepaid ground leases as of June 30, 2024. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.5 million and $0.3 million of the Company's rental expense for the three months ended June 30, 2024 and 2023, respectively, and $0.9 million and $0.7 million for the six months ended June 30, 2024 and 2023, respectively. The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows: Dollars in thousands OPERATING FINANCING 2024 $ 5,912 $ 1,013 2025 12,644 2,218 2026 12,739 2,255 2027 12,934 2,294 2028 13,061 2,326 2029 and thereafter 693,556 394,072 Total undiscounted lease payments 750,846 404,178 Discount (520,245) (328,979) Lease liabilities $ 230,601 $ 75,199 The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2024 and 2023: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2024 2023 2024 2023 Operating lease cost Operating lease expense $ 4,599 $ 5,329 $ 9,065 $ 10,436 Variable lease expense 1,315 2,235 2,542 4,371 Finance lease cost Amortization of right-of-use assets 392 387 779 774 Interest on lease liabilities 942 923 1,880 1,841 Total lease expense $ 7,248 $ 8,874 $ 14,266 $ 17,422 Other information Operating cash flows outflows related to operating leases $ 4,889 $ 5,230 $ 8,929 $ 11,190 Operating cash flows outflows related to financing leases $ 591 $ 541 $ 1,154 $ 1,094 Financing cash flows outflows related to financing leases $ 4 $ 6 $ 30 $ 17 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,561 $ — $ 2,561 $ — Weighted-average years remaining lease term (excluding renewal options) - operating leases 45.9 47.3 Weighted-average years remaining lease term (excluding renewal options) - finance leases 57.4 58.4 Weighted-average discount rate - operating leases 5.7 % 5.8 % Weighted-average discount rate - finance leases 5.0 % 5.0 % |
Leases | Leases Lessor Accounting The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2052. Some leases provide tenants with fixed rent renewal terms while others have 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, 2024 was $308.1 million and $626.2 million, respectively. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2023 was $329.7 million and $653.8 million, respectively. Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sale-type lease, as of June 30, 2024 were as follows: Dollars in thousands OPERATING 2024 $ 441,170 2025 827,950 2026 734,851 2027 614,428 2028 500,591 2029 and thereafter 1,629,794 $ 4,748,784 Lessee Accounting As of June 30, 2024, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2024, the Company had 221 properties totaling 16.5 million square feet that were held under ground leases. Some of the Company's 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 stated in the lease or based on CPI. The Company had 73 prepaid ground leases as of June 30, 2024. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.5 million and $0.3 million of the Company's rental expense for the three months ended June 30, 2024 and 2023, respectively, and $0.9 million and $0.7 million for the six months ended June 30, 2024 and 2023, respectively. The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows: Dollars in thousands OPERATING FINANCING 2024 $ 5,912 $ 1,013 2025 12,644 2,218 2026 12,739 2,255 2027 12,934 2,294 2028 13,061 2,326 2029 and thereafter 693,556 394,072 Total undiscounted lease payments 750,846 404,178 Discount (520,245) (328,979) Lease liabilities $ 230,601 $ 75,199 The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2024 and 2023: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2024 2023 2024 2023 Operating lease cost Operating lease expense $ 4,599 $ 5,329 $ 9,065 $ 10,436 Variable lease expense 1,315 2,235 2,542 4,371 Finance lease cost Amortization of right-of-use assets 392 387 779 774 Interest on lease liabilities 942 923 1,880 1,841 Total lease expense $ 7,248 $ 8,874 $ 14,266 $ 17,422 Other information Operating cash flows outflows related to operating leases $ 4,889 $ 5,230 $ 8,929 $ 11,190 Operating cash flows outflows related to financing leases $ 591 $ 541 $ 1,154 $ 1,094 Financing cash flows outflows related to financing leases $ 4 $ 6 $ 30 $ 17 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,561 $ — $ 2,561 $ — Weighted-average years remaining lease term (excluding renewal options) - operating leases 45.9 47.3 Weighted-average years remaining lease term (excluding renewal options) - finance leases 57.4 58.4 Weighted-average discount rate - operating leases 5.7 % 5.8 % Weighted-average discount rate - finance leases 5.0 % 5.0 % |
Notes and Bonds Payable
Notes and Bonds Payable | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and December 31, 2023. MATURITY DATE BALANCE 1 AS OF EFFECTIVE INTEREST RATE Dollars in thousands 6/30/2024 12/31/2023 $1.5 billion Unsecured Credit Facility 2 10/25 $ 250,000 $ — 6.28 % $200 million Unsecured Term Loan 3 5/25 199,750 199,903 6.37 % $250 million Unsecured Term Loan 4 7/25 249,659 349,798 6.37 % $300 million Unsecured Term Loan 10/25 299,970 299,958 6.37 % $150 million Unsecured Term Loan 6/26 149,716 149,643 6.37 % $200 million Unsecured Term Loan 7/27 199,571 199,502 6.37 % $300 million Unsecured Term Loan 1/28 298,498 298,288 6.37 % Senior Notes due 2025 5/25 249,674 249,484 4.12 % Senior Notes due 2026 8/26 582,873 579,017 4.94 % Senior Notes due 2027 7/27 485,889 483,727 4.76 % Senior Notes due 2028 1/28 297,726 297,429 3.85 % Senior Notes due 2030 2/30 580,667 575,443 5.30 % Senior Notes due 2030 3/30 296,983 296,780 2.72 % Senior Notes due 2031 3/31 296,086 295,832 2.25 % Senior Notes due 2031 3/31 658,263 649,521 5.13 % Mortgage notes payable 9/24-12/26 52,828 70,534 3.57% - 6.88% $ 5,148,153 $ 4,994,859 1 Balance is presented net of discounts and issuance costs and inclusive of premiums, where applicable. 2 As of June 30, 2024, the Company had $1.3 billion available to be drawn on its $1.5 billion Unsecured Credit Facility. 3 In April 2024, the Company exercised its option to extend the maturity date for one year to May 2025 for a fee of approximately $0.3 million. 4 In June 2024, the Company repaid $100 million of the initial $350 million Unsecured Term Loan and exercised its second option to extend the maturity date for one year to July 2025 for a fee of approximately $0.3 million. Changes in Debt Structure On January 6, 2024, the Company repaid in full at maturity a mortgage note payable bearing interest at a rate of 4.77% per annum with an outstanding principal balance of $11.3 million. The mortgage note encumbered a 63,012 square foot property in California . On February 1, 2024, the Company repaid in full at maturity a mortgage note payable bearing interest at a rate of 4.12% per annum with an outstanding principal balance of $5.6 million. T he mortgage note encumbered a 40,324 squ are foot property in Georgia . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024, the Company had 15 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: AMOUNT WEIGHTED May 2026 $ 275,000 3.74 % June 2026 150,000 3.83 % December 2026 150,000 3.84 % June 2027 200,000 4.27 % December 2027 300,000 3.93 % $ 1,075,000 3.92 % 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 and their classification on the Condensed Consolidated Balance Sheet as of June 30, 2024. BALANCE AT JUNE 30, 2024 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ (1,839) Interest rate swaps Other assets $ 11,538 Total derivatives designated as hedging instruments $ 9,699 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, 2024 and 2023 related to the Company's outstanding interest rate swaps. (GAIN)/LOSS RECOGNIZED IN (GAIN)/LOSS RECLASSIFIED FROM In thousands 2024 2023 2024 2023 Interest rate swaps $ (5,891) $ (21,523) Interest expense $ (3,811) $ (3,568) Settled treasury hedges — — Interest expense 107 107 Settled interest rate swaps — — Interest expense 42 42 $ (5,891) $ (21,523) Total interest expense $ (3,662) $ (3,419) (GAIN)/LOSS RECOGNIZED IN (GAIN)/LOSS RECLASSIFIED FROM In thousands 2024 2023 2024 2023 Interest rate swaps $ (25,501) $ (12,981) Interest expense $ (7,825) $ (6,000) Settled treasury hedges — — Interest expense 213 213 Settled interest rate swaps — — Interest expense 84 84 $ (25,501) $ (12,981) Total interest expense $ (7,528) $ (5,703) The Company estimates that an additional $10.5 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 an additional $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 should the Company default on the indebtedness. As of June 30, 2024, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $0.3 million. As of June 30, 2024, the Company had 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, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings From time to time, the Company is 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. Development and Redevelopment Activity For the six months ended June 30, 2024, the Company invested $35.6 million and $8.5 million toward active development and redevelopment of properties, respectively, and $22.3 million toward recently completed development and redevelopment projects. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and the twelve months ended December 31, 2023: SIX MONTHS ENDED JUNE 30, 2024 TWELVE MONTHS ENDED DECEMBER 31, 2023 Balance, beginning of period 380,964,433 380,589,894 Issuance of common stock 8,623 8,627 Conversion of OP units to common stock 194,767 190,544 Shares Repurchased (17,242,237) — Non-vested share-based awards, net of withheld shares and forfeitures 401,648 175,368 Balance, end of period 364,327,234 380,964,433 Common Stock Dividends During the six months ended June 30, 2024, the Company declared and paid common stock dividends totaling $0.62 per share. On Jul y 30, 2024, the Company declared a quarterly common stock dividend in the amount of $0.31 per share payable on August 28, 2024 to stockholders of record on August 12, 2024. Common Stock Repurchases On May 31, 2023, the Company’s Board of Directors authorized the repurchase of up to $500.0 million of outstanding shares of the Company’s common stock either in the open market or through privately negotiated transactions, subject to market conditions, regulatory constraints, and other customary conditions. In April 2024, the Company repurch ased 2,966,764 shares of its common stock at a weighted average price of $14.07 for a total of $41.7 million under this authorization. On April 30, 2024, the Company's Board of Directors authorized the repurchase of up to $500.0 million of outstanding shares of the Company's common stock, superseding the previous stock repurchase authorization. The stock repurchase authorization expires on April 29, 2025, and the Company may suspend or terminate repurchases at any time without prior notice. Under the Maryland General Corporation Law, outstanding shares of common stock acquired by a corporation become authorized but unissued shares, which may be re-issued. In May and June 2024, the Company repurchased an aggregate of 14,275,473 shares of its common stock at a weighted average price of $16.18 for a total of $231.0 million under this authorization. As of June 30, 2024, the Company was authorized to repurchase an additional $269.0 million of the Company's common stock. Subsequent to June 30, 2024, the Company repurchased 1,296,985 shares of its common stock for a total of $21.8 million. 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. The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2024 and 2023. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, Dollars in thousands, except per share data 2024 2023 2024 2023 Weighted average common shares outstanding Weighted average common shares outstanding 374,498,770 380,829,011 377,916,989 380,812,981 Non-vested shares (2,021,471) (1,932,334) (1,954,956) (1,952,350) Weighted average common shares outstanding - basic 372,477,299 378,896,677 375,962,033 378,860,631 Weighted average common shares outstanding - basic 372,477,299 378,896,677 375,962,033 378,860,631 Dilutive effect of OP Units — — — — Weighted average common shares outstanding - diluted 372,477,299 378,896,677 375,962,033 378,860,631 Net loss $ (145,938) $ (83,726) $ (461,157) $ (171,804) Income allocated to participating securities (917) (606) (1,819) (1,830) Loss attributable to non-controlling interest 2,158 967 6,541 1,920 Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units (717) (77) (2,047) 1,154 Net loss applicable to common stockholders - basic $ (145,414) $ (83,442) $ (458,482) $ (170,560) Basic earnings per common share - net loss $ (0.39) $ (0.22) $ (1.22) $ (0.45) Diluted earnings per common share - net loss $ (0.39) $ (0.22) $ (1.22) $ (0.45) The effect of OP Units redeemable for 3,657,682 shares and 3,669,454 shares for the three and six months ended June 30, 2024, respectively, were excluded from the calculation of diluted loss per common share because the effect was anti-dilutive due to the loss from continuing operations incurred during those periods. Stock Incentive Plan The Company's stock incentive plan ("Incentive Plan") permits the grant of incentive awards to its employees and directors in any of the following forms: options, stock appreciation rights, restricted stock, restricted or deferred stock units, performance awards, dividend equivalents, or other stock-based awards, including units in the OP. Equity Incentive Plans During the six months ended June 30, 2024, the Company made the following equity awards: • Restricted Stock • During the first quarter of 2024, the Company granted non-vested stock awards to its named executive officers and other members of senior management with an aggregate grant date fair value of $5.6 million, which consisted of an aggregate of 361,712 non-vested shares with vesting periods ranging from three • During the second quarter of 2024, the Company granted to independent directors an aggregate of 58,910 shares of non-vested stock awards with a grant date fair value of $0.9 million, and an aggregate of 45,982 LTIP Series D units with a grant date fair value of $0.7 million. The Company also granted non-vested stock awards to other members of senior management with an aggregate grant date fair value of $0.1 million, which consisted of an aggregate of 9,350 non-vested shares. • Restricted Stock Units ("RSUs") • On February 13, 2024, the Company granted an aggregate of 208,055 RSUs to members of senior management, with an aggregate grant date fair value of $3.5 million and a five-year vesting period. • On April 30, 2024, the Company granted an aggregate of 21,816 RSUs to members of senior management, with an aggregate grant date fair value of $0.3 million and a five-year vesting period. Approximately 36% of the RSUs vest based on relative total shareholder return ("TSR") and were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $19.10 for the relative TSR component for the February 2024 grant using the following assumptions: Volatility 28.0 % Dividend assumption Accrued Expected term 3 years Risk-free rate 4.44 % Stock price (per share) $15.22 The remaining 64% of the RSUs vest based upon certain operating performance conditions. With respect to the operating performance conditions of the February 13, 2024 grant, the grant date fair value was $15.22 based on the Company's share price on the date of grant. • LTIP Series C Units On February 13, 2024, the Company granted an aggregate of 906,044 LTIP Series C units ("LTIP-C units) in the OP to its named executive officers with three-year forward-looking performance targets, a five-year vesting period and an aggregate grant date fair value of $7.5 million. Approximately 36% of the LTIP-C units vest based on relative TSR and were valued using independent specialists. The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $9.62 for the relative TSR component for the February 2024 grant using the following assumptions: Volatility 28.0 % Dividend assumption Accrued Expected term 3 years Risk-free rate 4.44 % Stock price (per share) $15.22 The remaining 64% of the LTIP-C units vest based upon certain operating performance conditions. With respect to the operating performance conditions of the February 13, 2024 grant, the grant date fair value was $15.22 based on the Company's share price on the date of grant. The Company records amortization expense based on the probability of achieving certain operating performance conditions, which is evaluated throughout the performance period. The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three and six months ended June 30, 2024 and 2023: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2024 2023 2024 2023 Share-based awards, beginning of period 4,043,154 2,946,242 2,615,562 2,090,060 Granted 1 135,767 43,276 1,611,578 1,118,537 Vested (46,660) (74,304) (75,074) (188,070) Change in awards based on performance assessment (47,202) — (47,202) (79,250) Forfeited — (3,860) (19,805) (29,923) Share-based awards, end of period 4,085,059 2,911,354 4,085,059 2,911,354 1 LTIP-C units are issued at the maximum possible value of the award and are reflected as such in this table until the performance conditions have been satisfied and the exact number of awards are determinable. The following table represents expected amortization of the Company's non-vested awards issued as of June 30, 2024: Dollars in millions FUTURE AMORTIZATION 2024 $ 8.0 2025 13.4 2026 10.1 2027 5.5 2028 and thereafter 2.9 Total $ 39.9 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 (level 1 inputs) due to the short-term maturity of these investments. • Real estate notes receivabl e - Real estate notes receivable are recorded in other assets on the Company's Condensed Consolidated Balance Sheets. Fair value is estimated using cash flow analyses, based on current interest rates for similar types of arrangements using level 2 inputs in the hierarchy. However, the fair value of one note receivable was determined utilizing the fair value of the receivables' collateral, as the receivables are collateral-dependent, and were classified as level 3 inputs in the hierarchy. • 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, level 2 inputs, which consider forward yield curves and discount rates. See Note 5 for additional information. The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 5,148.2 $ 4,984.7 $ 4,994.9 $ 4,872.7 Real estate notes receivable $ 168.8 $ 163.6 $ 173.6 $ 172.5 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ (143,780) | $ (82,759) | $ (454,616) | $ (169,884) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Business Overview | Business Overview Healthcare Realty Trust Incorporated (the "Company") 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. As of June 30, 2024, the Company had gross investments of approximately $12.9 billion in 629 con solidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding held for sale assets. In addition, as of June 30, 2024, the Company had a weighted average ownership interest of approxima tel y 36% in 44 re al estate properties held in unconsolidated joint ventures. See Note 2 below for more details regarding the Company's unconsolidated joint ventures. The Company's re al estate properties are located in 35 states and total approxima tel y 37.2 million square feet. The Company provided leasing and property management services to 92% of its portfolio nationwide as of June 30, 2024. On July 20, 2022, pursuant to that certain Agreement and Plan of Merger dated as of February 28, 2022, by and among Healthcare Realty Trust Incorporated, a Maryland corporation (now known as HRTI, LLC, a Maryland limited liability company) (“Legacy HR”), 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”), 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”). 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 under the ticker symbol “HR”. The Company is structured as an umbrella partnership REIT under which substantially all of its business is conducted through the OP, the day-to-day management of which is exclusively controlled by the Company. As of June 30, 2024, the Company owned 98.6% of the issued and outstanding units of the OP, with other investors owning the remaining 1.4% of the OP's issued and outstanding units. |
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. 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, 2023. 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, 2024 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. |
Principles of Consolidation | Principles of Consolidation The Company’s Condensed Consolidated Financial Statements include 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 (“ASC”) Topic 810, Consolidation 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, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Condensed Consolidated Financial Statements. 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, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance. 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 entities 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. |
Variable Interest Entities | As of June 30, 2024, 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. |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests |
Asset Impairment | Asset Impairment |
Goodwill Impairment | Goodwill Impairment |
Investments in Leases - Financing Receivables, Net and Real Estate Notes Receivable and Interest Income | Investments in Leases - Financing Receivables, Net Real Estate Notes Receivable Allowance for Credit Losses Pursuant to ASC Topic 326: Financial Instruments - Credit Losses, the Company adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under ASC Topic 326. The Company utilizes a probability of default method approach for estimating current expected credit losses and evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers industry and economic conditions, credit enhancements, liquidity, and other factors. The determination of the credit allowance is based on a quarterly evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan payments. The Company evaluates the collectability of loan receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral. A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that the Company will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement. For those loans identified as having deteriorated credit quality, the amount of credit loss is determined on an individual basis. Placement on non-accrual status may be required. Consistent with this definition, all loans on non-accrual status are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, the loan may return to income accrual status. While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance. Interest Income Income from Lease Financing Receivables The Company recognized the related income from two financing receivables totaling $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2024, and $2.1 million and $4.2 million, respectively, for the three and six months ended June 30, 2023, based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable in any particular period will not equal the cash payments from the lease agreement in that period. 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 Interest income over the life of the lease. |
Revenue from Contracts with Customers (ASC Topic 606) | Revenue from Contracts with Customers (ASC Topic 606) The Company recognizes certain revenue under the core principle of ASC 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 ASC Topic 606. To achieve the core principle, the Company applies the five-step model specified in the guidance. 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 | New Accounting Pronouncements On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting ( Topic 280) . Some of the main provisions of this update to segment reporting include; (i) a requirement to disclose significant segment expenses, on an annual and interim basis, that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; (ii) a requirement to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (iii) a requirement that an entity that has a single reportable segment provide all the disclosures required by the amendments in this update. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Condensed Balance Sheet | Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate: (dollars in thousands) JUNE 30, 2024 Assets: Total real estate properties, net $ 112,694 Cash and cash equivalents 3,205 Other assets, net 2,556 Total assets $ 118,455 Liabilities: Accrued expenses and other liabilities 7,848 Total liabilities 7,848 Redeemable non-controlling interests 3,194 Partners' equity 108,612 Cumulative net loss (1,199) Total partners' equity 107,413 Total liabilities and equity $ 118,455 |
Schedule of Variable Interest Entities | As a result, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs. (dollars in thousands) ORIGINATION DATE LOCATION SOURCE CARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS 2021 Houston, TX 1 Note receivable $ 20,500 $ 20,500 2021 Charlotte, NC 1 Note receivable 7,111 7,211 2022 Texas 2 Joint venture 59,239 59,239 1 Assumed mortgage note receivable in connection with the Merger. 2 Includes investments in seven properties. |
Schedule of Accounts, Notes, Loans and Financing Receivable | See below for additional information regarding the Company's financing receivables. (dollars in thousands) ORIGINATION DATE LOCATION INTEREST RATE CARRYING VALUE as of JUNE 30, 2024 May 2021 Poway, CA 5.72% $ 115,056 November 2021 Columbus, OH 6.48% 7,357 $ 122,413 (dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of INTEREST RECEIVABLE (OTHER ASSETS) ALLOWANCE FOR CREDIT LOSSES FAIR VALUE DISCOUNT AND FEES CARRYING VALUE as of JUNE 30, 2024 Mezzanine loans Texas 1 6/24/2021 6/24/2024 8.00 % $ 54,119 $ 54,119 $ 906 $ (5,196) $ (3,067) $ 46,762 Arizona 12/21/2023 12/20/2026 9.00 % 6,000 6,000 36 — — 6,036 60,119 60,119 942 (5,196) (3,067) 52,798 Mortgage loans Texas 2 6/30/2021 12/02/2024 7.00 % 31,150 31,150 551 (11,201) — 20,500 North Carolina 3 12/22/2021 12/22/2024 8.00 % 6,000 6,000 1,211 — (100) 7,111 Florida 5/17/2022 2/27/2026 6.00 % 65,000 35,623 532 — (34) 36,121 California 3/30/2023 3/29/2026 6.00 % 45,000 45,000 178 — — 45,178 Florida 12/28/2023 12/28/2026 9.00 % 7,700 7,133 — — — 7,133 154,850 124,906 2,472 (11,201) (134) 116,043 $ 214,969 $ 185,025 $ 3,414 $ (16,397) $ (3,201) $ 168,841 1 As of the date of these financial statements, the outstanding principal and interest on these loans had not been repaid, and on July 15, 2024, the senior lender on the construction loans associated with the underlying projects provided notice of foreclosure proceedings to the borrower. The borrower is in negotiations with a third party to provide financing that will repay the senior lender. 2 During the second quarter of 2024, the Company determined that an allowance for credit loss of $11.2 million was needed on this mortgage loan. The reserve amount consists of approximately $10.7 million of principal and approximately $0.5 million of interest. Additionally, the maturity date on this mortgage loan was extended to December 2, 2024. 3 Outstanding principal and interest due upon maturity. |
Schedule of Company's Allowance For Credit Losses | The following table summarizes the Company's allowance for credit losses on real estate notes receivable: Dollars in thousands SIX MONTHS ENDED JUNE 30, 2024 TWELVE MONTHS ENDED DECEMBER 31, 2023 Allowance for credit losses, beginning of period $ 5,196 $ — Credit loss reserves 11,201 5,196 Allowance for credit losses, end of period $ 16,397 $ 5,196 |
Schedule of Disaggregation of revenue | Below is a detail of the amounts by category: THREE MONTHS ENDED SIX MONTHS ENDED in thousands 2024 2023 2024 2023 Type of Revenue Parking income $ 2,463 $ 2,370 $ 5,009 $ 4,761 Management fee income/other 1 1,859 1,860 3,504 4,086 $ 4,322 $ 4,230 $ 8,513 $ 8,847 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Equity Method Investments | The Company's investment in and loss recognized for the three and six months ended June 30, 2024 and 2023 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2024 2023 2024 2023 Investments in unconsolidated joint ventures, beginning of period $ 309,754 $ 327,746 $ 311,511 $ 327,248 New investment during the period 1 66,547 — 66,547 3,824 Equity loss recognized during the period (146) (17) (568) (797) Owner distributions (1,314) (484) (2,649) (3,030) Investments in unconsolidated joint ventures, end of period $ 374,841 $ 327,245 $ 374,841 $ 327,245 1 |
Schedule of dispositions | The following table details the Company's dispositions and joint venture contributions for the six months ended June 30, 2024. Dollars in thousands DATE DISPOSED SALE PRICE CLOSING ADJUSTMENTS NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER (INCLUDING RECEIVABLES) GAIN/(IMPAIRMENT) SQUARE FOOTAGE Albany, NY 4/1/24 $ 725 $ (60) $ 665 $ 765 $ (82) $ (18) 14,800 San Angelo, TX 4/12/24 5,085 (128) 4,957 4,917 66 (26) 24,580 Houston, TX 5/20/24 250 (9) 241 713 (520) 48 37,040 Multiple 1 5/23/24 284,348 (14,270) 270,078 254,176 25,836 (9,934) 556,274 Denver, CO 5/30/24 19,000 (628) 18,372 18,522 165 (315) 37,130 Austin, TX 1 6/6/24 54,858 (1,575) 53,283 27,964 623 24,696 129,879 Minneapolis, MN 6/21/24 1,082 (144) 938 303 43 592 50,291 Greensboro/Raleigh, NC 2, 3 6/28/24 99,518 (2,835) 96,683 86,810 906 8,967 309,424 Total dispositions $ 464,866 $ (19,649) $ 445,217 $ 394,170 $ 27,037 $ 24,010 1,159,418 1 The Company contributed the following medical outpatient properties to a joint venture in which the Company retained 20% ownership: one in each of Raleigh, NC, New York, NY, Philadelphia, PA, Atlanta, GA and Austin, TX; two medical outpatient properties in Los Angeles and four in Seattle, WA. Sale price and square footage reflect the total sale price paid by the joint venture and total square footage of the property. The net proceeds to the Company related to these dispositions totaled $256.8 million. 2 The Company sold seven medical outpatient properties in Greensboro, NC and two medical outpatient properties in Raleigh, NC to a single buyer in a single transaction. 3 |
Schedule of Assets and Liabilities Held for Sale | The table below reflects the assets and liabilities classified as held for sale as of June 30, 2024 and December 31, 2023: Dollars in thousands June 30, 2024 December 31, 2023 Balance Sheet data: Land $ 2,330 $ 1,850 Building and improvements 43,342 6,779 Lease intangibles 1,017 1,017 46,689 9,646 Accumulated depreciation (13,600) (913) Real estate assets held for sale, net 33,089 8,733 Cash and cash equivalents — — Operating lease right-of-use assets 850 — Other assets, net 591 101 Assets held for sale, net $ 34,530 $ 8,834 Accounts payable and accrued liabilities $ 531 $ 23 Operating lease liabilities 589 — Other liabilities 685 272 Liabilities of assets held for sale $ 1,805 $ 295 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Future Minimum Operating Lease Payments Receivable | Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sale-type lease, as of June 30, 2024 were as follows: Dollars in thousands OPERATING 2024 $ 441,170 2025 827,950 2026 734,851 2027 614,428 2028 500,591 2029 and thereafter 1,629,794 $ 4,748,784 |
Schedule of Future Minimum Operating Lease Payments | The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows: Dollars in thousands OPERATING FINANCING 2024 $ 5,912 $ 1,013 2025 12,644 2,218 2026 12,739 2,255 2027 12,934 2,294 2028 13,061 2,326 2029 and thereafter 693,556 394,072 Total undiscounted lease payments 750,846 404,178 Discount (520,245) (328,979) Lease liabilities $ 230,601 $ 75,199 |
Schedule of Future Minimum Financing Lease Payments | The Company’s future lease payments (primarily for its 148 non-prepaid ground leases) as of June 30, 2024 were as follows: Dollars in thousands OPERATING FINANCING 2024 $ 5,912 $ 1,013 2025 12,644 2,218 2026 12,739 2,255 2027 12,934 2,294 2028 13,061 2,326 2029 and thereafter 693,556 394,072 Total undiscounted lease payments 750,846 404,178 Discount (520,245) (328,979) Lease liabilities $ 230,601 $ 75,199 |
Schedule of Lease Cost | The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2024 and 2023: THREE MONTHS ENDED SIX MONTHS ENDED Dollars in thousands 2024 2023 2024 2023 Operating lease cost Operating lease expense $ 4,599 $ 5,329 $ 9,065 $ 10,436 Variable lease expense 1,315 2,235 2,542 4,371 Finance lease cost Amortization of right-of-use assets 392 387 779 774 Interest on lease liabilities 942 923 1,880 1,841 Total lease expense $ 7,248 $ 8,874 $ 14,266 $ 17,422 Other information Operating cash flows outflows related to operating leases $ 4,889 $ 5,230 $ 8,929 $ 11,190 Operating cash flows outflows related to financing leases $ 591 $ 541 $ 1,154 $ 1,094 Financing cash flows outflows related to financing leases $ 4 $ 6 $ 30 $ 17 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,561 $ — $ 2,561 $ — Weighted-average years remaining lease term (excluding renewal options) - operating leases 45.9 47.3 Weighted-average years remaining lease term (excluding renewal options) - finance leases 57.4 58.4 Weighted-average discount rate - operating leases 5.7 % 5.8 % Weighted-average discount rate - finance leases 5.0 % 5.0 % |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The table below details the Company’s notes and bonds payable as of June 30, 2024 and December 31, 2023. MATURITY DATE BALANCE 1 AS OF EFFECTIVE INTEREST RATE Dollars in thousands 6/30/2024 12/31/2023 $1.5 billion Unsecured Credit Facility 2 10/25 $ 250,000 $ — 6.28 % $200 million Unsecured Term Loan 3 5/25 199,750 199,903 6.37 % $250 million Unsecured Term Loan 4 7/25 249,659 349,798 6.37 % $300 million Unsecured Term Loan 10/25 299,970 299,958 6.37 % $150 million Unsecured Term Loan 6/26 149,716 149,643 6.37 % $200 million Unsecured Term Loan 7/27 199,571 199,502 6.37 % $300 million Unsecured Term Loan 1/28 298,498 298,288 6.37 % Senior Notes due 2025 5/25 249,674 249,484 4.12 % Senior Notes due 2026 8/26 582,873 579,017 4.94 % Senior Notes due 2027 7/27 485,889 483,727 4.76 % Senior Notes due 2028 1/28 297,726 297,429 3.85 % Senior Notes due 2030 2/30 580,667 575,443 5.30 % Senior Notes due 2030 3/30 296,983 296,780 2.72 % Senior Notes due 2031 3/31 296,086 295,832 2.25 % Senior Notes due 2031 3/31 658,263 649,521 5.13 % Mortgage notes payable 9/24-12/26 52,828 70,534 3.57% - 6.88% $ 5,148,153 $ 4,994,859 1 Balance is presented net of discounts and issuance costs and inclusive of premiums, where applicable. 2 As of June 30, 2024, the Company had $1.3 billion available to be drawn on its $1.5 billion Unsecured Credit Facility. 3 In April 2024, the Company exercised its option to extend the maturity date for one year to May 2025 for a fee of approximately $0.3 million. 4 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | As of June 30, 2024, the Company had 15 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: AMOUNT WEIGHTED May 2026 $ 275,000 3.74 % June 2026 150,000 3.83 % December 2026 150,000 3.84 % June 2027 200,000 4.27 % December 2027 300,000 3.93 % $ 1,075,000 3.92 % The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2024 and 2023 related to the Company's outstanding interest rate swaps. (GAIN)/LOSS RECOGNIZED IN (GAIN)/LOSS RECLASSIFIED FROM In thousands 2024 2023 2024 2023 Interest rate swaps $ (5,891) $ (21,523) Interest expense $ (3,811) $ (3,568) Settled treasury hedges — — Interest expense 107 107 Settled interest rate swaps — — Interest expense 42 42 $ (5,891) $ (21,523) Total interest expense $ (3,662) $ (3,419) (GAIN)/LOSS RECOGNIZED IN (GAIN)/LOSS RECLASSIFIED FROM In thousands 2024 2023 2024 2023 Interest rate swaps $ (25,501) $ (12,981) Interest expense $ (7,825) $ (6,000) Settled treasury hedges — — Interest expense 213 213 Settled interest rate swaps — — Interest expense 84 84 $ (25,501) $ (12,981) Total interest expense $ (7,528) $ (5,703) |
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 and their classification on the Condensed Consolidated Balance Sheet as of June 30, 2024. BALANCE AT JUNE 30, 2024 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ (1,839) Interest rate swaps Other assets $ 11,538 Total derivatives designated as hedging instruments $ 9,699 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of 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, 2024 and the twelve months ended December 31, 2023: SIX MONTHS ENDED JUNE 30, 2024 TWELVE MONTHS ENDED DECEMBER 31, 2023 Balance, beginning of period 380,964,433 380,589,894 Issuance of common stock 8,623 8,627 Conversion of OP units to common stock 194,767 190,544 Shares Repurchased (17,242,237) — Non-vested share-based awards, net of withheld shares and forfeitures 401,648 175,368 Balance, end of period 364,327,234 380,964,433 |
Schedule of 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, 2024 and 2023. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, Dollars in thousands, except per share data 2024 2023 2024 2023 Weighted average common shares outstanding Weighted average common shares outstanding 374,498,770 380,829,011 377,916,989 380,812,981 Non-vested shares (2,021,471) (1,932,334) (1,954,956) (1,952,350) Weighted average common shares outstanding - basic 372,477,299 378,896,677 375,962,033 378,860,631 Weighted average common shares outstanding - basic 372,477,299 378,896,677 375,962,033 378,860,631 Dilutive effect of OP Units — — — — Weighted average common shares outstanding - diluted 372,477,299 378,896,677 375,962,033 378,860,631 Net loss $ (145,938) $ (83,726) $ (461,157) $ (171,804) Income allocated to participating securities (917) (606) (1,819) (1,830) Loss attributable to non-controlling interest 2,158 967 6,541 1,920 Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units (717) (77) (2,047) 1,154 Net loss applicable to common stockholders - basic $ (145,414) $ (83,442) $ (458,482) $ (170,560) Basic earnings per common share - net loss $ (0.39) $ (0.22) $ (1.22) $ (0.45) Diluted earnings per common share - net loss $ (0.39) $ (0.22) $ (1.22) $ (0.45) |
Schedule of Stock Options, Valuation Assumptions | Volatility 28.0 % Dividend assumption Accrued Expected term 3 years Risk-free rate 4.44 % Stock price (per share) $15.22 Volatility 28.0 % Dividend assumption Accrued Expected term 3 years Risk-free rate 4.44 % Stock price (per share) $15.22 |
Schedule of the Activity Under the Incentive Plan and RSU Activity | The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three and six months ended June 30, 2024 and 2023: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2024 2023 2024 2023 Share-based awards, beginning of period 4,043,154 2,946,242 2,615,562 2,090,060 Granted 1 135,767 43,276 1,611,578 1,118,537 Vested (46,660) (74,304) (75,074) (188,070) Change in awards based on performance assessment (47,202) — (47,202) (79,250) Forfeited — (3,860) (19,805) (29,923) Share-based awards, end of period 4,085,059 2,911,354 4,085,059 2,911,354 1 LTIP-C units are issued at the maximum possible value of the award and are reflected as such in this table until the performance conditions have been satisfied and the exact number of awards are determinable. |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The following table represents expected amortization of the Company's non-vested awards issued as of June 30, 2024: Dollars in millions FUTURE AMORTIZATION 2024 $ 8.0 2025 13.4 2026 10.1 2027 5.5 2028 and thereafter 2.9 Total $ 39.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value And Carrying Values For Notes And Bonds Payable, Real Estate Notes Receivable, And Notes Receivable | The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 5,148.2 $ 4,984.7 $ 4,994.9 $ 4,872.7 Real estate notes receivable $ 168.8 $ 163.6 $ 173.6 $ 172.5 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions, ft² in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 USD ($) ft² loan property variable_interest_entity financing_receivable note_receivable state $ / shares shares | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) loan | Jun. 30, 2024 USD ($) ft² property variable_interest_entity financing_receivable note_receivable loan joint_venture state $ / shares shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) financing_receivable $ / shares | Mar. 31, 2024 USD ($) | Dec. 31, 2022 USD ($) | Jul. 20, 2021 $ / shares | |
Business Overview: | |||||||||
Gross investment amount, total | $ 12,900,000 | $ 12,900,000 | |||||||
Number of real estate properties | property | 629 | 629 | |||||||
Number of properties held in unconsolidated joint ventures | property | 44 | 44 | |||||||
Number of states that the company owns real estate in, whole units | state | 35 | 35 | |||||||
Approximate square feet invested in by company | ft² | 37.2 | 37.2 | |||||||
Nationwide portfolio (percent) | 92% | 92% | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Principles of Consolidation: | |||||||||
Equity ownership for consolidation (percent) | 100% | 100% | |||||||
Number of variable interest entities | variable_interest_entity | 4 | 4 | |||||||
Redeemable Non-Controlling Interests: | |||||||||
Redeemable non-controlling interests | $ 3,875 | $ 2,487 | $ 2,000 | $ 3,875 | $ 2,487 | $ 3,868 | $ 3,880 | $ 2,014 | |
Asset Impairment: | |||||||||
Impairment of real estate assets | 120,900 | 136,900 | |||||||
Goodwill Impairment | |||||||||
Impairment of goodwill | 0 | 0 | 250,530 | 0 | |||||
Real Estate Notes Receivable: | |||||||||
Investment in financing receivable, net | $ 168,800 | $ 168,800 | |||||||
Allowance for Credit Losses, Interest Income, Income from Real Estate Notes Receivable: | |||||||||
Number of mezzanine loans | loan | 2 | ||||||||
Number of mortgage loans | loan | 1 | 1 | |||||||
Credit loss reserves | $ 11,200 | $ 5,200 | $ 11,201 | $ 5,196 | |||||
Number of recognized lease financial receivables | financing_receivable | 2 | 2 | |||||||
Income from financing receivables | $ 2,100 | 2,100 | $ 4,200 | 4,200 | |||||
Number of real estate notes receivable | financing_receivable | 1 | 1 | 2 | ||||||
Financing receivable, nonaccrual | $ 20,500 | $ 20,500 | $ 48,900 | ||||||
Fair Value, Inputs, Level 3 | |||||||||
Asset Impairment: | |||||||||
Number of properties measured at fair value | property | 16 | 16 | |||||||
Properties measured at fair value | $ 265,600 | $ 265,600 | |||||||
One | |||||||||
Goodwill Impairment | |||||||||
Reporting unit, carrying value | 12,000,000 | 12,000,000 | |||||||
Notes Receivable | |||||||||
Allowance for Credit Losses, Interest Income, Income from Real Estate Notes Receivable: | |||||||||
Interest income | $ 1,800 | $ 2,200 | $ 4,200 | $ 4,300 | |||||
Variable Interest Entity | |||||||||
Principles of Consolidation: | |||||||||
Number of variable interest entities | variable_interest_entity | 3 | 3 | |||||||
Number of notes receivable | note_receivable | 2 | 2 | |||||||
Number of joint ventures | joint_venture | 1 | ||||||||
HealthCare Realty Trust Incorporated | |||||||||
Business Overview: | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||
HealthCare Realty Trust Incorporated | Other Investors | |||||||||
Business Overview: | |||||||||
Subsidiary, ownership percentage, noncontrolling owner | 1.40% | 1.40% | |||||||
Non-Controlling Interest Holders | Healthcare Trust of America Holdings L P | |||||||||
Principles of Consolidation: | |||||||||
Limited partner's capital, units outstanding (in shares) | shares | 5.3 | 5.3 | |||||||
Property Entities Not Determined to be VIEs | |||||||||
Principles of Consolidation: | |||||||||
Equity interest owned (percent) | 100% | 100% | |||||||
Healthcare Trust of America Holdings L P | |||||||||
Principles of Consolidation: | |||||||||
Equity interest owned (percent) | 98.60% | 98.60% | |||||||
Real Estate Properties Held in Joint Ventures | |||||||||
Business Overview: | |||||||||
Joint venture ownership (percent) | 36% | 36% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Consolidated balance sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||||||
Total real estate properties, net | $ 10,434,689 | $ 11,172,214 | ||||
Cash and cash equivalents | 41,765 | 25,699 | ||||
Total assets | 11,803,627 | 12,637,131 | ||||
Liabilities: | ||||||
Total liabilities | 5,828,935 | 5,714,349 | ||||
Redeemable non-controlling interests | 3,875 | $ 3,880 | 3,868 | $ 2,487 | $ 2,000 | $ 2,014 |
Partners' equity | 5,887,142 | 6,822,662 | ||||
Total equity | 5,970,817 | $ 6,503,138 | 6,918,914 | $ 7,283,417 | $ 7,464,839 | $ 7,679,818 |
Total liabilities and equity | 11,803,627 | $ 12,637,131 | ||||
Variable interest entity | ||||||
Assets: | ||||||
Total real estate properties, net | 112,694 | |||||
Cash and cash equivalents | 3,205 | |||||
Other assets, net | 2,556 | |||||
Total assets | 118,455 | |||||
Liabilities: | ||||||
Accrued expenses and other liabilities | 7,848 | |||||
Total liabilities | 7,848 | |||||
Redeemable non-controlling interests | 3,194 | |||||
Partners' equity | 108,612 | |||||
Cumulative net loss | (1,199) | |||||
Total equity | 107,413 | |||||
Total liabilities and equity | $ 118,455 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Variable interest entity (Details) $ in Thousands | Jun. 30, 2024 USD ($) note_receivable property |
Variable Interest Entity | |
Variable Interest Entity [Line Items] | |
Number of notes receivable | note_receivable | 2 |
Houston, TX | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Notes receivable, carrying amount | $ 20,500 |
MAXIMUM EXPOSURE TO LOSS | 20,500 |
North Carolina | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Notes receivable, carrying amount | 7,111 |
MAXIMUM EXPOSURE TO LOSS | 7,211 |
Texas | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Joint venture, carrying amount | 59,239 |
MAXIMUM EXPOSURE TO LOSS | $ 59,239 |
Number of owned real estate properties | property | 7 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Notes Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, carrying value | $ 122,413 | $ 122,413 | |||
MAXIMUM LOAN COMMITMENT | 214,969 | 214,969 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 185,025 | 185,025 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 3,414 | 3,414 | |||
ALLOWANCE FOR CREDIT LOSSES | (16,397) | (16,397) | $ (5,196) | $ 0 | |
FAIR VALUE DISCOUNT AND FEES | (3,201) | (3,201) | |||
CARRYING VALUE | 168,841 | 168,841 | |||
Credit loss reserves | 11,200 | $ 5,200 | 11,201 | $ 5,196 | |
Mezzanine loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
MAXIMUM LOAN COMMITMENT | 60,119 | 60,119 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 60,119 | 60,119 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 942 | 942 | |||
ALLOWANCE FOR CREDIT LOSSES | (5,196) | (5,196) | |||
FAIR VALUE DISCOUNT AND FEES | (3,067) | (3,067) | |||
CARRYING VALUE | 52,798 | 52,798 | |||
Mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
MAXIMUM LOAN COMMITMENT | 154,850 | 154,850 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 124,906 | 124,906 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 2,472 | 2,472 | |||
ALLOWANCE FOR CREDIT LOSSES | (11,201) | (11,201) | |||
FAIR VALUE DISCOUNT AND FEES | (134) | (134) | |||
CARRYING VALUE | $ 116,043 | $ 116,043 | |||
Poway, CA | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 5.72% | 5.72% | |||
Financing receivable, carrying value | $ 115,056 | $ 115,056 | |||
Columbus, OH | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 6.48% | 6.48% | |||
Financing receivable, carrying value | $ 7,357 | $ 7,357 | |||
Texas | Mezzanine loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 8% | 8% | |||
MAXIMUM LOAN COMMITMENT | $ 54,119 | $ 54,119 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 54,119 | 54,119 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 906 | 906 | |||
ALLOWANCE FOR CREDIT LOSSES | (5,196) | (5,196) | |||
FAIR VALUE DISCOUNT AND FEES | (3,067) | (3,067) | |||
CARRYING VALUE | $ 46,762 | $ 46,762 | |||
Texas | Mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 7% | 7% | |||
MAXIMUM LOAN COMMITMENT | $ 31,150 | $ 31,150 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 31,150 | 31,150 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 551 | 551 | |||
ALLOWANCE FOR CREDIT LOSSES | (11,201) | (11,201) | |||
FAIR VALUE DISCOUNT AND FEES | 0 | 0 | |||
CARRYING VALUE | 20,500 | $ 20,500 | |||
Credit loss reserves | 11,200 | ||||
Allowance for credit loss | 10,700 | ||||
Allowance for credit loss, interest | $ 500 | ||||
Arizona | Mezzanine loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 9% | 9% | |||
MAXIMUM LOAN COMMITMENT | $ 6,000 | $ 6,000 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 6,000 | 6,000 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 36 | 36 | |||
ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
FAIR VALUE DISCOUNT AND FEES | 0 | 0 | |||
CARRYING VALUE | $ 6,036 | $ 6,036 | |||
North Carolina | Mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 8% | 8% | |||
MAXIMUM LOAN COMMITMENT | $ 6,000 | $ 6,000 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 6,000 | 6,000 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 1,211 | 1,211 | |||
ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
FAIR VALUE DISCOUNT AND FEES | (100) | (100) | |||
CARRYING VALUE | $ 7,111 | $ 7,111 | |||
Florida | Mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 6% | 6% | |||
MAXIMUM LOAN COMMITMENT | $ 65,000 | $ 65,000 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 35,623 | 35,623 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 532 | 532 | |||
ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
FAIR VALUE DISCOUNT AND FEES | (34) | (34) | |||
CARRYING VALUE | $ 36,121 | $ 36,121 | |||
California | Mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 6% | 6% | |||
MAXIMUM LOAN COMMITMENT | $ 45,000 | $ 45,000 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 45,000 | 45,000 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 178 | 178 | |||
ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
FAIR VALUE DISCOUNT AND FEES | 0 | 0 | |||
CARRYING VALUE | $ 45,178 | $ 45,178 | |||
Florida 1 | Mortgage loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
INTEREST RATE | 9% | 9% | |||
MAXIMUM LOAN COMMITMENT | $ 7,700 | $ 7,700 | |||
REAL ESTATE NOTES RECEIVABLE, GROSS | 7,133 | 7,133 | |||
INTEREST RECEIVABLE (OTHER ASSETS) | 0 | 0 | |||
ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||
FAIR VALUE DISCOUNT AND FEES | 0 | 0 | |||
CARRYING VALUE | $ 7,133 | $ 7,133 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Company's Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of period | $ 0 | $ 5,196 | $ 0 | |
Credit loss reserves | $ 11,200 | $ 5,200 | 11,201 | 5,196 |
Allowance for credit losses, end of period | $ 16,397 | $ 16,397 | $ 5,196 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | $ 4,322 | $ 4,230 | $ 8,513 | $ 8,847 |
Parking income | ||||
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | 2,463 | 2,370 | 5,009 | 4,761 |
Management fee income/other | ||||
Disaggregation of Revenue [Line Items] | ||||
Type of Revenue | $ 1,859 | $ 1,860 | $ 3,504 | $ 4,086 |
Real Estate Investments - Uncon
Real Estate Investments - Unconsolidated Joint Venture Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Equity Method Investments [Roll Forward] | |||||
Investments in unconsolidated joint ventures, beginning of period | $ 311,511 | ||||
Equity loss recognized during the period | $ (146) | $ (17) | (568) | $ (797) | |
Investments in unconsolidated joint ventures, end of period | 374,841 | 374,841 | $ 311,511 | ||
Parking Garages | |||||
Equity Method Investments [Roll Forward] | |||||
Investments in unconsolidated joint ventures, beginning of period | 309,754 | 327,746 | 311,511 | 327,248 | 327,248 |
New investments during the period | 66,547 | 0 | 66,547 | 3,824 | |
Equity loss recognized during the period | (146) | (17) | (568) | (797) | |
Owner distributions | (1,314) | (484) | (2,649) | (3,030) | |
Investments in unconsolidated joint ventures, end of period | $ 374,841 | $ 327,245 | $ 374,841 | $ 327,245 | $ 311,511 |
Parking Garages | Los Angeles, California | Limited Liability Company One | |||||
Equity Method Investments [Roll Forward] | |||||
Joint venture, ownership (in percentage) | 20% | 40% |
Real Estate Investments - Dispo
Real Estate Investments - Dispositions (Details) $ in Thousands | 6 Months Ended | ||||||||
Jun. 28, 2024 USD ($) ft² | Jun. 21, 2024 USD ($) ft² | Jun. 06, 2024 USD ($) ft² | May 30, 2024 USD ($) ft² | May 23, 2024 USD ($) ft² | May 20, 2024 USD ($) ft² | Apr. 12, 2024 USD ($) ft² | Apr. 01, 2024 USD ($) ft² | Jun. 30, 2024 USD ($) ft² property | |
Real Estate Dispositions | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 464,866 | ||||||||
CLOSING ADJUSTMENTS | (19,649) | ||||||||
NET PROCEEDS | 445,217 | ||||||||
NET REAL ESTATE INVESTMENT | 394,170 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 27,037 | ||||||||
GAIN/(IMPAIRMENT) | $ 24,010 | ||||||||
SQUARE FOOTAGE | ft² | 1,159,418 | ||||||||
Albany, NY | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 725 | ||||||||
CLOSING ADJUSTMENTS | (60) | ||||||||
NET PROCEEDS | 665 | ||||||||
NET REAL ESTATE INVESTMENT | 765 | ||||||||
OTHER (INCLUDING RECEIVABLES) | (82) | ||||||||
GAIN/(IMPAIRMENT) | $ (18) | ||||||||
SQUARE FOOTAGE | ft² | 14,800 | ||||||||
San Angelo, TX | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 5,085 | ||||||||
CLOSING ADJUSTMENTS | (128) | ||||||||
NET PROCEEDS | 4,957 | ||||||||
NET REAL ESTATE INVESTMENT | 4,917 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 66 | ||||||||
GAIN/(IMPAIRMENT) | $ (26) | ||||||||
SQUARE FOOTAGE | ft² | 24,580 | ||||||||
Houston, TX | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 250 | ||||||||
CLOSING ADJUSTMENTS | (9) | ||||||||
NET PROCEEDS | 241 | ||||||||
NET REAL ESTATE INVESTMENT | 713 | ||||||||
OTHER (INCLUDING RECEIVABLES) | (520) | ||||||||
GAIN/(IMPAIRMENT) | $ 48 | ||||||||
SQUARE FOOTAGE | ft² | 37,040 | ||||||||
Multiple | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 284,348 | ||||||||
CLOSING ADJUSTMENTS | (14,270) | ||||||||
NET PROCEEDS | 270,078 | ||||||||
NET REAL ESTATE INVESTMENT | 254,176 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 25,836 | ||||||||
GAIN/(IMPAIRMENT) | $ (9,934) | ||||||||
SQUARE FOOTAGE | ft² | 556,274 | ||||||||
Multiple | Joint Venture | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
NET PROCEEDS | $ 256,800 | ||||||||
Denver, CO | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 19,000 | ||||||||
CLOSING ADJUSTMENTS | (628) | ||||||||
NET PROCEEDS | 18,372 | ||||||||
NET REAL ESTATE INVESTMENT | 18,522 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 165 | ||||||||
GAIN/(IMPAIRMENT) | $ (315) | ||||||||
SQUARE FOOTAGE | ft² | 37,130 | ||||||||
Austin, TX | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 54,858 | ||||||||
CLOSING ADJUSTMENTS | (1,575) | ||||||||
NET PROCEEDS | 53,283 | ||||||||
NET REAL ESTATE INVESTMENT | 27,964 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 623 | ||||||||
GAIN/(IMPAIRMENT) | $ 24,696 | ||||||||
SQUARE FOOTAGE | ft² | 129,879 | ||||||||
Number of owned real estate properties | property | 1 | ||||||||
Joint venture, ownership (in percentage) | 20% | ||||||||
Minneapolis, MN | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 1,082 | ||||||||
CLOSING ADJUSTMENTS | (144) | ||||||||
NET PROCEEDS | 938 | ||||||||
NET REAL ESTATE INVESTMENT | 303 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 43 | ||||||||
GAIN/(IMPAIRMENT) | $ 592 | ||||||||
SQUARE FOOTAGE | ft² | 50,291 | ||||||||
Greensboro/Raleigh, NC | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
SALE PRICE | $ 99,518 | ||||||||
CLOSING ADJUSTMENTS | (2,835) | ||||||||
NET PROCEEDS | 96,683 | ||||||||
NET REAL ESTATE INVESTMENT | 86,810 | ||||||||
OTHER (INCLUDING RECEIVABLES) | 906 | ||||||||
GAIN/(IMPAIRMENT) | $ 8,967 | ||||||||
SQUARE FOOTAGE | ft² | 309,424 | ||||||||
Los Angeles, California | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 2 | ||||||||
Seattle, WA | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 4 | ||||||||
Greensboro, NC | Real Estate Dispositions | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 7 | ||||||||
Raleigh, NC | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 1 | ||||||||
Joint venture, ownership (in percentage) | 20% | ||||||||
Raleigh, NC | Real Estate Dispositions | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 2 | ||||||||
Atlanta, GA | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 1 | ||||||||
Joint venture, ownership (in percentage) | 20% | ||||||||
Philadelphia, PA | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 1 | ||||||||
Joint venture, ownership (in percentage) | 20% | ||||||||
New York, NY | |||||||||
Real Estate Dispositions [Line Items] | |||||||||
Number of owned real estate properties | property | 1 | ||||||||
Joint venture, ownership (in percentage) | 20% |
Real Estate Investments - Narra
Real Estate Investments - Narrative (Details) - property | Jun. 30, 2024 | Dec. 31, 2023 |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | ||
Number of owned real estate properties | 3 | 1 |
Real Estate Investments - Asset
Real Estate Investments - Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Long Lived Assets Held-for-sale [Line Items] | ||
Land | $ 1,287,532 | $ 1,343,265 |
Building and improvements | 10,436,218 | 10,881,373 |
Total real estate properties | 12,862,398 | 13,399,067 |
Accumulated depreciation | (2,427,709) | (2,226,853) |
Real estate assets held for sale, net | 10,434,689 | 11,172,214 |
Cash and cash equivalents | 41,765 | 25,699 |
Operating lease right-of-use assets | 261,976 | 275,975 |
Assets held for sale, net | 34,530 | 8,834 |
Operating lease liabilities | 230,601 | 229,714 |
Liabilities of assets held for sale | 1,805 | 295 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Land | 2,330 | 1,850 |
Building and improvements | 43,342 | 6,779 |
Lease intangibles | 1,017 | 1,017 |
Total real estate properties | 46,689 | 9,646 |
Accumulated depreciation | (13,600) | (913) |
Real estate assets held for sale, net | 33,089 | 8,733 |
Cash and cash equivalents | 0 | 0 |
Operating lease right-of-use assets | 850 | 0 |
Other assets, net | 591 | 101 |
Assets held for sale, net | 34,530 | 8,834 |
Accounts payable and accrued liabilities | 531 | 23 |
Operating lease liabilities | 589 | 0 |
Other liabilities | 685 | 272 |
Liabilities of assets held for sale | $ 1,805 | $ 295 |
Leases - Lease Income - (Detail
Leases - Lease Income - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Rental income | $ 308,135 | $ 329,680 | $ 626,211 | $ 653,773 |
Leases - Lessor Accounting (Det
Leases - Lessor Accounting (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
OPERATING | |
2024 | $ 441,170 |
2025 | 827,950 |
2026 | 734,851 |
2027 | 614,428 |
2028 | 500,591 |
2029 and thereafter | 1,629,794 |
Total | $ 4,748,784 |
Leases - Ground Leases (Details
Leases - Ground Leases (Details) ft² in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) lease property | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) ft² lease property | Jun. 30, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Number of properties subject to ground leases | property | 221 | 221 | ||
Square feet subject to ground leases | ft² | 16.5 | |||
Number of prepaid ground leases | 73 | |||
Amortization of prepaid rent | $ | $ 0.5 | $ 0.3 | $ 0.9 | $ 0.7 |
Number of non-prepaid ground leases | 148 | 148 | ||
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, 2024 | Dec. 31, 2023 |
OPERATING | ||
2024 | $ 5,912 | |
2025 | 12,644 | |
2026 | 12,739 | |
2027 | 12,934 | |
2028 | 13,061 | |
2029 and thereafter | 693,556 | |
Total undiscounted lease payments | 750,846 | |
Discount | (520,245) | |
Lease liabilities | 230,601 | $ 229,714 |
FINANCING | ||
2024 | 1,013 | |
2025 | 2,218 | |
2026 | 2,255 | |
2027 | 2,294 | |
2028 | 2,326 | |
2029 and thereafter | 394,072 | |
Total undiscounted lease payments | 404,178 | |
Discount | (328,979) | |
Lease liabilities | $ 75,199 | $ 74,503 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating lease cost | ||||
Operating lease expense | $ 4,599 | $ 5,329 | $ 9,065 | $ 10,436 |
Variable lease expense | 1,315 | 2,235 | 2,542 | 4,371 |
Finance lease cost | ||||
Amortization of right-of-use assets | 392 | 387 | 779 | 774 |
Interest on lease liabilities | 942 | 923 | 1,880 | 1,841 |
Total lease expense | 7,248 | 8,874 | 14,266 | 17,422 |
Other information | ||||
Operating cash flows outflows related to operating leases | 4,889 | 5,230 | 8,929 | 11,190 |
Operating cash flows outflows related to financing leases | 591 | 541 | 1,154 | 1,094 |
Financing cash flows outflows related to financing leases | 4 | 6 | 30 | 17 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,561 | $ 0 | $ 2,561 | $ 0 |
Weighted-average years remaining lease term (excluding renewal options) - operating leases | 45 years 10 months 24 days | 47 years 3 months 18 days | 45 years 10 months 24 days | 47 years 3 months 18 days |
Weighted-average years remaining lease term (excluding renewal options) - finance leases | 57 years 4 months 24 days | 58 years 4 months 24 days | 57 years 4 months 24 days | 58 years 4 months 24 days |
Weighted-average discount rate - operating leases | 5.70% | 5.80% | 5.70% | 5.80% |
Weighted-average discount rate - finance leases | 5% | 5% | 5% | 5% |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) - USD ($) | 1 Months Ended | ||
Jun. 30, 2024 | Apr. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 5,148,153,000 | $ 4,994,859,000 | |
Extension period for maturity date | 1 year | 1 year | |
Debt fees | $ 300,000 | $ 300,000 | |
Mortgage notes payable | Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.57% | ||
Mortgage notes payable | Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 6.88% | ||
Line of credit | $1.5 billion Unsecured Credit Facility 2 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 250,000,000 | 0 | |
Effective interest rate | 6.28% | ||
Credit facility | $ 1,500,000,000 | ||
Available to be drawn debt amount | 1,300,000,000 | ||
Medium-term notes | $200 million Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 199,750,000 | 199,903,000 | |
Effective interest rate | 6.37% | ||
Face amount | $ 200,000,000 | ||
Medium-term notes | $350 million Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 249,659,000 | 349,798,000 | |
Effective interest rate | 6.37% | ||
Face amount | $ 250,000,000 | ||
Medium-term notes | $300 million Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 299,970,000 | 299,958,000 | |
Effective interest rate | 6.37% | ||
Face amount | $ 300,000,000 | ||
Medium-term notes | $150 million Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 149,716,000 | 149,643,000 | |
Effective interest rate | 6.37% | ||
Face amount | $ 150,000,000 | ||
Medium-term notes | $200 million Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 199,571,000 | 199,502,000 | |
Effective interest rate | 6.37% | ||
Face amount | $ 200,000,000 | ||
Medium-term notes | $300 million Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 298,498,000 | 298,288,000 | |
Effective interest rate | 6.37% | ||
Face amount | $ 300,000,000 | ||
Medium-term notes | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Face amount | 350,000,000 | ||
Repaid amount | 100,000,000 | ||
Senior notes | Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 249,674,000 | 249,484,000 | |
Effective interest rate | 4.12% | ||
Senior notes | Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 582,873,000 | 579,017,000 | |
Effective interest rate | 4.94% | ||
Senior notes | Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 485,889,000 | 483,727,000 | |
Effective interest rate | 4.76% | ||
Senior notes | Senior Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 297,726,000 | 297,429,000 | |
Effective interest rate | 3.85% | ||
Senior notes | Senior Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 580,667,000 | 575,443,000 | |
Effective interest rate | 5.30% | ||
Senior notes | Senior Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 296,983,000 | 296,780,000 | |
Effective interest rate | 2.72% | ||
Senior notes | Senior Notes due 2031 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 296,086,000 | 295,832,000 | |
Effective interest rate | 2.25% | ||
Senior notes | Senior Notes due 2031 | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 658,263,000 | 649,521,000 | |
Effective interest rate | 5.13% | ||
Mortgages | Mortgage notes payable | |||
Debt Instrument [Line Items] | |||
Notes and bonds payable | $ 52,828,000 | $ 70,534,000 |
Notes and Bonds Payable - Narra
Notes and Bonds Payable - Narrative (Details) - Mortgages $ in Millions | Feb. 01, 2024 USD ($) ft² | Jan. 06, 2024 USD ($) ft² |
Debt Instrument [Line Items] | ||
Effective interest rate | 4.12% | 4.77% |
Outstanding principal repaid | $ | $ 5.6 | $ 11.3 |
California | ||
Debt Instrument [Line Items] | ||
Encumbered square footage | 63,012 | |
Georgia | ||
Debt Instrument [Line Items] | ||
Encumbered square footage | 40,324 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Cash Flow Hedges of Interest Rate Risk (Details) $ in Thousands | Jun. 30, 2024 USD ($) derivative |
Derivative [Line Items] | |
Number of instruments | derivative | 15 |
Interest Rate Swaps | Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
AMOUNT | $ 1,075,000 |
Weighted average interest rate (percent) | 3.92% |
Interest Rate Swap, Expiring May 1, 2026 | Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
AMOUNT | $ 275,000 |
Weighted average interest rate (percent) | 3.74% |
Interest Rate Swap, Expiring June 1, 2026 | Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
AMOUNT | $ 150,000 |
Weighted average interest rate (percent) | 3.83% |
Interest Rate Swap, Expiring December 1, 2026 | Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
AMOUNT | $ 150,000 |
Weighted average interest rate (percent) | 3.84% |
Interest Rate Swap, Expiring June 1, 2027 | Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
AMOUNT | $ 200,000 |
Weighted average interest rate (percent) | 4.27% |
Interest Rate Swap, Expiring December 1, 2027 | Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
AMOUNT | $ 300,000 |
Weighted average interest rate (percent) | 3.93% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - Designated as hedging instrument - Interest Rate Swaps $ in Thousands | Jun. 30, 2024 USD ($) |
Derivative [Line Items] | |
Liability derivatives | $ 9,699 |
Other liabilities | |
Derivative [Line Items] | |
Liability derivatives | (1,839) |
Other assets | |
Derivative [Line Items] | |
Liability derivatives | $ 11,538 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
(Gain)/loss recognized in AOCI on derivative | $ (5,891) | $ (21,523) | $ (25,501) | $ (12,981) |
(Gain) Loss, Reclassified from AOCI into income | (3,662) | (3,419) | (7,528) | (5,703) |
Interest expense | ||||
Derivative [Line Items] | ||||
(Gain) Loss, Reclassified from AOCI into income | (3,662) | (3,419) | (7,528) | (5,703) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
(Gain)/loss recognized in AOCI on derivative | (5,891) | (21,523) | (25,501) | (12,981) |
Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
(Gain) Loss, Reclassified from AOCI into income | (3,811) | (3,568) | (7,825) | (6,000) |
Settled treasury hedges | ||||
Derivative [Line Items] | ||||
(Gain)/loss recognized in AOCI on derivative | 0 | 0 | 0 | 0 |
Settled treasury hedges | Interest expense | ||||
Derivative [Line Items] | ||||
(Gain) Loss, Reclassified from AOCI into income | 107 | 107 | 213 | 213 |
Settled interest rate swaps | ||||
Derivative [Line Items] | ||||
(Gain)/loss recognized in AOCI on derivative | 0 | 0 | 0 | 0 |
Settled interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
(Gain) Loss, Reclassified from AOCI into income | $ 42 | $ 42 | $ 84 | $ 84 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Derivative [Line Items] | |
Derivatives in net liability position | $ 0.3 |
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 | 10.5 |
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) |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Active Development Properties | |
Other Commitments [Line Items] | |
Construction activity and development properties | $ 35.6 |
Redevelopment Properties | |
Other Commitments [Line Items] | |
Construction activity and development properties | 8.5 |
Completed Develpoment and Redevelopment Properties | |
Other Commitments [Line Items] | |
Construction activity and development properties | $ 22.3 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Beginning and Ending Common Stock Outstanding (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period (in shares) | 380,964,000 | |
Shares Repurchased (in shares) | (17,242,237) | 0 |
Balance, end of period (in shares) | 364,327,000 | 380,964,000 |
Common Stock | ||
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period (in shares) | 380,964,433 | 380,589,894 |
Issuance of common stock (in shares) | 8,623 | 8,627 |
Stock issued during period, shares, conversion of units | 194,767 | 190,544 |
Non-vested share-based awards, net of withheld shares and forfeitures (in shares) | 401,648 | 175,368 |
Balance, end of period (in shares) | 364,327,234 | 380,964,433 |
Stockholders' Equity - Stock Tr
Stockholders' Equity - Stock Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jul. 30, 2024 | Apr. 30, 2024 | Feb. 13, 2024 | Aug. 02, 2024 | Apr. 30, 2024 | Feb. 29, 2024 | Jan. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 31, 2023 | |
Class of Stock [Line Items] | ||||||||||||||
Dividends paid per common share, during the period (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.62 | $ 0.62 | ||||||||||
Stock repurchase program, authorized amount | $ 500 | $ 500 | $ 500 | |||||||||||
Treasury stock, shares, acquired (in shares) | 2,966,764 | 14,275,473 | ||||||||||||
Shares acquired, average cost per share (in dollars per share) | $ 14.07 | $ 16.18 | ||||||||||||
Common stock repurchases, excluding commissions | $ 41.7 | $ 231 | ||||||||||||
Additional authorized amount for share repurchase program | $ 269 | $ 269 | $ 269 | |||||||||||
Subsequent event | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Dividends declared per common share, during the period (in dollars per share) | $ 0.31 | |||||||||||||
Treasury stock, shares, acquired (in shares) | 1,296,985 | |||||||||||||
Common stock repurchases, excluding commissions | $ 21.8 | |||||||||||||
LTIP Series C Units | Directors | Share-Based Payment Arrangement, Nonemployee | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Granted (in shares) | 906,044 | |||||||||||||
Grant date fair value | $ 7.5 | |||||||||||||
Stock incentive plan | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Granted (in shares) | 135,767 | 43,276 | 1,611,578 | 1,118,537 | ||||||||||
Operating Partnership Performance Units | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award performance period | 3 years | |||||||||||||
Operating Partnership Performance Units | Performance conditions | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Percentage of restricted stock units | 64% | |||||||||||||
Weighted average grant date fair value (in dollars per share) | $ 15.22 | |||||||||||||
Operating Partnership Performance Units | Relative TSR Component | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Weighted average grant date fair value (in dollars per share) | $ 9.62 | |||||||||||||
Operating Partnership Performance Units | LTIP Series C Units | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Percentage of restricted stock units | 36% | |||||||||||||
Non-vested Stock Award | Executive Incentive Program | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Grant date fair value | $ 0.9 | $ 5.6 | ||||||||||||
Granted (in shares) | 58,910 | 361,712 | ||||||||||||
Non-vested Stock Award | Executive Incentive Program | Minimum | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 3 years | |||||||||||||
Non-vested Stock Award | Executive Incentive Program | Maximum | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 8 years | |||||||||||||
Non-vested Stock Award | LTIP Series D Units | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Grant date fair value | $ 0.7 | |||||||||||||
Granted (in shares) | 45,982 | |||||||||||||
Non-vested Stock Award | Other Members Of Senior Management | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Grant date fair value | $ 0.1 | |||||||||||||
Granted (in shares) | 9,350 | |||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting period | 5 years | 5 years | ||||||||||||
Percentage of restricted stock units | 36% | |||||||||||||
Restricted Stock Units (RSUs) | Performance conditions | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Percentage of restricted stock units | 64% | |||||||||||||
Weighted average grant date fair value (in dollars per share) | $ 15.22 | |||||||||||||
Restricted Stock Units (RSUs) | Relative TSR Component | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Weighted average grant date fair value (in dollars per share) | $ 19.10 | |||||||||||||
Restricted Stock Units (RSUs) | Executive Incentive Program | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Grant date fair value | $ 0.3 | $ 3.5 | ||||||||||||
Granted (in shares) | 21,816 | 208,055 | ||||||||||||
Options under the Employee Stock Option Plan | Operating Partnership Performance Units | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Weighted-average incremental shares of common stock excluded from the computation (in shares) | 3,657,682 | 3,669,454 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Weighted average common shares outstanding | ||||
Weighted average common shares outstanding (in shares) | 374,498,770 | 380,829,011 | 377,916,989 | 380,812,981 |
Non-vested shares (in shares) | (2,021,471) | (1,932,334) | (1,954,956) | (1,952,350) |
Weighted average common shares outstanding - basic (in shares) | 372,477,299 | 378,896,677 | 375,962,033 | 378,860,631 |
Dilutive effect of OP Units (in shares) | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 372,477,299 | 378,896,677 | 375,962,033 | 378,860,631 |
Net loss | $ (145,938) | $ (83,726) | $ (461,157) | $ (171,804) |
Income allocated to participating securities | (917) | (606) | (1,819) | (1,830) |
Loss attributable to non-controlling interest | 2,158 | 967 | 6,541 | 1,920 |
Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units | (717) | (77) | (2,047) | 1,154 |
Net loss applicable to common stockholders - basic | $ (145,414) | $ (83,442) | $ (458,482) | $ (170,560) |
Basic earnings per common share - net loss (in dollars per share) | $ (0.39) | $ (0.22) | $ (1.22) | $ (0.45) |
Diluted earnings per common share- net loss (in dollars per share) | $ (0.39) | $ (0.22) | $ (1.22) | $ (0.45) |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Options, Valuation Assumptions (Details) - $ / shares | 1 Months Ended | |
Jan. 04, 2023 | Jan. 31, 2023 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Volatility | 28% | |
Expected term | 3 years | |
Risk-free rate | 4.44% | |
Stock price (in dollar per share) | $ 15.22 | |
Operating Partnership Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Volatility | 28% | |
Expected term | 3 years | |
Risk-free rate | 4.44% | |
Stock price (in dollar per share) | $ 15.22 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of the Activity Under the Incentive Plan and RSU Activity (Details) - Stock incentive plan - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Summary of the activity under the incentive plans | |||||
Share-based awards, beginning of period (in shares) | 4,043,154 | 2,615,562 | 2,946,242 | 2,615,562 | 2,090,060 |
Granted (in shares) | 135,767 | 43,276 | 1,611,578 | 1,118,537 | |
Vested/Forfeited (in shares) | (46,660) | (74,304) | (75,074) | (188,070) | |
Change in awards based on performance assessment (in shares) | (47,202) | 0 | (47,202) | (79,250) | |
Forfeited (in shares) | 0 | (3,860) | (19,805) | (29,923) | |
Share-based awards, ending of period (in shares) | 4,085,059 | 4,043,154 | 2,911,354 | 4,085,059 | 2,911,354 |
Stockholders' Equity - Amortiza
Stockholders' Equity - Amortization of Compensation for Nonvested Shares (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Equity [Abstract] | |
2024 | $ 8 |
2025 | 13.4 |
2026 | 10.1 |
2027 | 5.5 |
2028 and thereafter | 2.9 |
Total | $ 39.9 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
CARRYING VALUE | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 5,148.2 | $ 4,994.9 |
Real estate notes receivable | 168.8 | 173.6 |
FAIR VALUE | ||
Derivative [Line Items] | ||
Notes and bonds payable | 4,984.7 | 4,872.7 |
Real estate notes receivable | $ 163.6 | $ 172.5 |