Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MPW | |
Entity Registrant Name | MEDICAL PROPERTIES TRUST INC | |
Entity Central Index Key | 1,287,865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 320,247,632 | |
MPT Operating Partnership, L.P. [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MPT OPERATING PARTNERSHIP, L.P. | |
Entity Central Index Key | 1,524,607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | $ 3,652,215 | $ 3,297,705 |
Net investment in direct financing leases | 533,491 | 626,996 |
Mortgage loans | 550,118 | 757,581 |
Gross investment in real estate assets | 4,735,824 | 4,682,282 |
Accumulated depreciation and amortization | (301,262) | (257,928) |
Net investment in real estate assets | 4,434,562 | 4,424,354 |
Cash and cash equivalents | 1,094,917 | 195,541 |
Interest and rent receivables | 54,554 | 46,939 |
Straight-line rent receivables | 103,413 | 82,155 |
Other loans | 165,784 | 664,822 |
Other assets | 242,107 | 195,540 |
Total Assets | 6,095,337 | 5,609,351 |
Liabilities | ||
Debt, net | 2,728,549 | 3,322,541 |
Accounts payable and accrued expenses | 149,190 | 137,356 |
Deferred revenue | 24,528 | 29,358 |
Lease deposits and other obligations to tenants | 27,104 | 12,831 |
Total Liabilities | 2,929,371 | 3,502,086 |
Equity / Capital | ||
Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding | ||
Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding - 309,792 shares at September 30, 2016 and 236,744 shares at December 31, 2015 | 310 | 237 |
Limited Partners: | ||
Additional paid in capital | 3,623,673 | 2,593,827 |
Distributions in excess of net income | (402,632) | (418,650) |
Accumulated other comprehensive loss | (60,036) | (72,884) |
Treasury shares, at cost | (262) | (262) |
Total Medical Properties Trust, Inc. Stockholders' Equity | 3,161,053 | 2,102,268 |
Non-controlling interests | 4,913 | 4,997 |
Total Equity / Capital | 3,165,966 | 2,107,265 |
Total Liabilities and Equity / Capital | 6,095,337 | 5,609,351 |
MPT Operating Partnership, L.P. [Member] | ||
Real estate assets | ||
Land, buildings and improvements, intangible lease assets, and other | 3,652,215 | 3,297,705 |
Net investment in direct financing leases | 533,491 | 626,996 |
Mortgage loans | 550,118 | 757,581 |
Gross investment in real estate assets | 4,735,824 | 4,682,282 |
Accumulated depreciation and amortization | (301,262) | (257,928) |
Net investment in real estate assets | 4,434,562 | 4,424,354 |
Cash and cash equivalents | 1,094,917 | 195,541 |
Interest and rent receivables | 54,554 | 46,939 |
Straight-line rent receivables | 103,413 | 82,155 |
Other loans | 165,784 | 664,822 |
Other assets | 242,107 | 195,540 |
Total Assets | 6,095,337 | 5,609,351 |
Liabilities | ||
Debt, net | 2,728,549 | 3,322,541 |
Accounts payable and accrued expenses | 90,430 | 84,628 |
Deferred revenue | 24,528 | 29,358 |
Lease deposits and other obligations to tenants | 27,104 | 12,831 |
Payable due to Medical Properties Trust, Inc. | 58,370 | 52,338 |
Total Liabilities | 2,928,981 | 3,501,696 |
Limited Partners: | ||
Accumulated other comprehensive loss | (60,036) | (72,884) |
Total Medical Properties Trust, Inc. Stockholders' Equity | 3,161,443 | 2,102,658 |
Non-controlling interests | 4,913 | 4,997 |
Total Equity / Capital | 3,166,356 | 2,107,655 |
Total Liabilities and Equity / Capital | 6,095,337 | 5,609,351 |
MPT Operating Partnership, L.P. [Member] | General Partner [Member] | ||
Equity / Capital | ||
General Partner - issued and outstanding - 3,095 units at September 30, 2016 and 2,363 units at December 31, 2015 | 32,235 | 21,773 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners: | ||
Limited Partners Capital | $ 3,189,244 | $ 2,153,769 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 309,792,000 | 236,744,000 |
Common stock, shares outstanding | 309,792,000 | 236,744,000 |
MPT Operating Partnership, L.P. [Member] | Common Units [Member] | ||
Limited Partners, units issued | 306,697,000 | 234,381,000 |
Limited Partners, units outstanding | 306,697,000 | 234,381,000 |
General Partner [Member] | MPT Operating Partnership, L.P. [Member] | ||
General partner, units issued | 3,095,000 | 2,363,000 |
General partner, units outstanding | 3,095,000 | 2,363,000 |
LTIP Units [Member] | MPT Operating Partnership, L.P. [Member] | ||
LTIP Units, shares issued | 292,000 | 292,000 |
LTIP Units, shares outstanding | 292,000 | 292,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Rent billed | $ 82,387 | $ 70,358 | $ 234,408 | $ 177,351 |
Straight-line rent | 9,741 | 5,023 | 26,509 | 15,003 |
Income from direct financing leases | 14,678 | 14,692 | 47,181 | 40,055 |
Interest and fee income | 19,749 | 24,497 | 79,756 | 77,924 |
Total revenues | 126,555 | 114,570 | 387,854 | 310,333 |
Expenses | ||||
Real estate depreciation and amortization | 23,876 | 20,016 | 67,850 | 49,728 |
Impairment charges | (80) | 7,295 | ||
Property-related | (93) | 1,727 | 1,592 | 2,608 |
Acquisition expenses | 2,677 | 24,949 | 6,379 | 56,997 |
General and administrative | 12,305 | 10,778 | 35,821 | 32,325 |
Total operating expenses | 38,685 | 57,470 | 118,937 | 141,658 |
Operating income | 87,870 | 57,100 | 268,917 | 168,675 |
Other income (expense) | ||||
Interest expense | (40,262) | (31,643) | (121,132) | (84,961) |
Gain on sale of real estate and other asset dispositions, net | 44,616 | 3,268 | 61,294 | 3,268 |
Unutilized financing fees / debt refinancing costs | (22,535) | (4,080) | (22,539) | (4,319) |
Earnings (loss) from equity and other interests | 1,245 | 476 | (2,556) | 2,432 |
Other income (expense) | 99 | (1,918) | (118) | (2,488) |
Income tax expense | (490) | (80) | (1,173) | (1,018) |
Net other expense | (17,327) | (33,977) | (86,224) | (87,086) |
Income from continuing operations | 70,543 | 23,123 | 182,693 | 81,589 |
Loss from discontinued operations | (1) | |||
Net income | 70,543 | 23,123 | 182,692 | 81,589 |
Net income attributable to non-controlling interests | (185) | (66) | (683) | (228) |
Net income attributable to MPT common stockholders | $ 70,358 | $ 23,057 | $ 182,009 | $ 81,361 |
Earnings per common share - basic | ||||
Income from continuing operations attributable to MPT common stockholders | $ 0.29 | $ 0.10 | $ 0.75 | $ 0.38 |
Loss from discontinued operations attributable to MPT common stockholders | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders | $ 0.29 | $ 0.10 | $ 0.75 | $ 0.38 |
Weighted average shares outstanding - basic | 246,230 | 223,948 | 240,607 | 211,659 |
Earnings per common share - diluted | ||||
Income from continuing operations attributable to MPT common stockholders | $ 0.28 | $ 0.10 | $ 0.75 | $ 0.38 |
Loss from discontinued operations attributable to MPT common stockholders | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders | $ 0.28 | $ 0.10 | $ 0.75 | $ 0.38 |
Weighted average shares outstanding - diluted | 247,468 | 223,948 | 241,432 | 212,068 |
Dividends declared per common share | $ 0.23 | $ 0.22 | $ 0.68 | $ 0.66 |
MPT Operating Partnership, L.P. [Member] | ||||
Revenues | ||||
Rent billed | $ 82,387 | $ 70,358 | $ 234,408 | $ 177,351 |
Straight-line rent | 9,741 | 5,023 | 26,509 | 15,003 |
Income from direct financing leases | 14,678 | 14,692 | 47,181 | 40,055 |
Interest and fee income | 19,749 | 24,497 | 79,756 | 77,924 |
Total revenues | 126,555 | 114,570 | 387,854 | 310,333 |
Expenses | ||||
Real estate depreciation and amortization | 23,876 | 20,016 | 67,850 | 49,728 |
Impairment charges | (80) | 7,295 | ||
Property-related | (93) | 1,727 | 1,592 | 2,608 |
Acquisition expenses | 2,677 | 24,949 | 6,379 | 56,997 |
General and administrative | 12,305 | 10,778 | 35,821 | 32,325 |
Total operating expenses | 38,685 | 57,470 | 118,937 | 141,658 |
Operating income | 87,870 | 57,100 | 268,917 | 168,675 |
Other income (expense) | ||||
Interest expense | (40,262) | (31,643) | (121,132) | (84,961) |
Gain on sale of real estate and other asset dispositions, net | 44,616 | 3,268 | 61,294 | 3,268 |
Unutilized financing fees / debt refinancing costs | (22,535) | (4,080) | (22,539) | (4,319) |
Earnings (loss) from equity and other interests | 1,245 | 476 | (2,556) | 2,432 |
Other income (expense) | 99 | (1,918) | (118) | (2,488) |
Income tax expense | (490) | (80) | (1,173) | (1,018) |
Net other expense | (17,327) | (33,977) | (86,224) | (87,086) |
Income from continuing operations | 70,543 | 23,123 | 182,693 | 81,589 |
Loss from discontinued operations | (1) | |||
Net income | 70,543 | 23,123 | 182,692 | 81,589 |
Net income attributable to non-controlling interests | (185) | (66) | (683) | (228) |
Net income attributable to MPT common stockholders | $ 70,358 | $ 23,057 | $ 182,009 | $ 81,361 |
Earnings per common share - basic | ||||
Income from continuing operations attributable to MPT common stockholders | $ 0.29 | $ 0.10 | $ 0.75 | $ 0.38 |
Loss from discontinued operations attributable to MPT common stockholders | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders | $ 0.29 | $ 0.10 | $ 0.75 | $ 0.38 |
Weighted average shares outstanding - basic | 246,230 | 223,948 | 240,607 | 211,659 |
Earnings per common share - diluted | ||||
Income from continuing operations attributable to MPT common stockholders | $ 0.28 | $ 0.10 | $ 0.75 | $ 0.38 |
Loss from discontinued operations attributable to MPT common stockholders | 0 | 0 | 0 | 0 |
Net income attributable to MPT common stockholders | $ 0.28 | $ 0.10 | $ 0.75 | $ 0.38 |
Weighted average shares outstanding - diluted | 247,468 | 223,948 | 241,432 | 212,068 |
Dividends declared per common share | $ 0.23 | $ 0.22 | $ 0.68 | $ 0.66 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 70,543 | $ 23,123 | $ 182,692 | $ 81,589 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swap | 854 | 727 | 2,494 | 2,042 |
Foreign currency translation gain (loss) | 4,450 | (573) | 10,354 | (39,859) |
Total comprehensive income | 75,847 | 23,277 | 195,540 | 43,772 |
Comprehensive income attributable to non-controlling interests | (185) | (66) | (683) | (228) |
Comprehensive income attributable to MPT common stockholders | 75,662 | 23,211 | 194,857 | 43,544 |
MPT Operating Partnership, L.P. [Member] | ||||
Net income | 70,543 | 23,123 | 182,692 | 81,589 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swap | 854 | 727 | 2,494 | 2,042 |
Foreign currency translation gain (loss) | 4,450 | (573) | 10,354 | (39,859) |
Total comprehensive income | 75,847 | 23,277 | 195,540 | 43,772 |
Comprehensive income attributable to non-controlling interests | (185) | (66) | (683) | (228) |
Comprehensive income attributable to MPT common stockholders | $ 75,662 | $ 23,211 | $ 194,857 | $ 43,544 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net income | $ 182,692 | $ 81,589 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 69,720 | 51,149 |
Straight-line rent revenue | (27,009) | (17,815) |
Straight-line rent and other write-off | 3,063 | 2,812 |
Impairment charges | 7,295 | |
Direct financing lease interest accretion | (6,757) | (5,286) |
Share / (Unit)-based compensation expense | 5,832 | 8,383 |
Gain from sale of real estate and other asset dispositions, net | (61,294) | (3,268) |
Amortization and write-off of deferred financing costs and debt discount | 5,799 | 4,293 |
Unutilized financing fees / debt refinancing costs | 22,539 | 4,319 |
Other adjustments | (8,398) | (265) |
Changes in: | ||
Interest and rent receivable | (12,790) | (5,471) |
Accounts payable and accrued expenses | (12,403) | 11,744 |
Net cash provided by operating activities | 168,289 | 132,184 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (213,100) | (2,020,198) |
Net proceeds from sale of real estate | 198,767 | 19,175 |
Principal received on loans receivable | 804,809 | 698,040 |
Investment in loans receivable | (102,909) | (354,002) |
Construction in progress and other | (139,336) | (115,700) |
Investment in unsecured senior notes | (50,000) | |
Proceeds from sale of unsecured senior notes | 50,000 | |
Other investments, net | (52,701) | (9,803) |
Net cash provided by (used for) investing activities | 495,530 | (1,782,488) |
Financing activities | ||
Revolving credit facilities, net | (1,100,000) | 500,415 |
Proceeds from term debt | 1,000,000 | 676,877 |
Payments of term debt | (515,221) | (210) |
Distributions paid | (160,060) | (130,841) |
Proceeds from sale of common shares / units, net of offering costs | 1,024,088 | 817,533 |
Lease deposits and other obligations to tenants | 13,784 | (12,669) |
Debt issuance costs paid and other financing activities | (31,317) | (7,950) |
Net cash provided by financing activities | 231,274 | 1,843,155 |
Increase in cash and cash equivalents for period | 895,093 | 192,851 |
Effect of exchange rate changes | 4,283 | (5,157) |
Cash and cash equivalents at beginning of period | 195,541 | 144,541 |
Cash and cash equivalents at end of period | 1,094,917 | 332,235 |
Interest paid | 120,374 | 74,911 |
Supplemental schedule of non-cash investing activities: | ||
Increase in development projects construction costs incurred, unpaid | 17,458 | 83 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | 58,333 | 52,388 |
MPT Operating Partnership, L.P. [Member] | ||
Operating activities | ||
Net income | 182,692 | 81,589 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 69,720 | 51,149 |
Straight-line rent revenue | (27,009) | (17,815) |
Straight-line rent and other write-off | 3,063 | 2,812 |
Impairment charges | 7,295 | |
Direct financing lease interest accretion | (6,757) | (5,286) |
Share / (Unit)-based compensation expense | 5,832 | 8,383 |
Gain from sale of real estate and other asset dispositions, net | (61,294) | (3,268) |
Amortization and write-off of deferred financing costs and debt discount | 5,799 | 4,293 |
Unutilized financing fees / debt refinancing costs | 22,539 | 4,319 |
Other adjustments | (8,398) | (265) |
Changes in: | ||
Interest and rent receivable | (12,790) | (5,471) |
Accounts payable and accrued expenses | (12,403) | 11,744 |
Net cash provided by operating activities | 168,289 | 132,184 |
Investing activities | ||
Cash paid for acquisitions and other related investments | (213,100) | (2,020,198) |
Net proceeds from sale of real estate | 198,767 | 19,175 |
Principal received on loans receivable | 804,809 | 698,040 |
Investment in loans receivable | (102,909) | (354,002) |
Construction in progress and other | (139,336) | (115,700) |
Investment in unsecured senior notes | (50,000) | |
Proceeds from sale of unsecured senior notes | 50,000 | |
Other investments, net | (52,701) | (9,803) |
Net cash provided by (used for) investing activities | 495,530 | (1,782,488) |
Financing activities | ||
Revolving credit facilities, net | (1,100,000) | 500,415 |
Proceeds from term debt | 1,000,000 | 676,877 |
Payments of term debt | (515,221) | (210) |
Distributions paid | (160,060) | (130,841) |
Proceeds from sale of common shares / units, net of offering costs | 1,024,088 | 817,533 |
Lease deposits and other obligations to tenants | 13,784 | (12,669) |
Debt issuance costs paid and other financing activities | (31,317) | (7,950) |
Net cash provided by financing activities | 231,274 | 1,843,155 |
Increase in cash and cash equivalents for period | 895,093 | 192,851 |
Effect of exchange rate changes | 4,283 | (5,157) |
Cash and cash equivalents at beginning of period | 195,541 | 144,541 |
Cash and cash equivalents at end of period | 1,094,917 | 332,235 |
Interest paid | 120,374 | 74,911 |
Supplemental schedule of non-cash investing activities: | ||
Increase in development projects construction costs incurred, unpaid | 17,458 | 83 |
Supplemental schedule of non-cash financing activities: | ||
Distributions declared, unpaid | $ 58,333 | $ 52,388 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Medical Properties Trust, Inc., a Maryland corporation, was formed on August 27, 2003, under the Maryland General Corporation Law for the purpose of engaging in the business of investing in, owning, and leasing commercial real estate. Our operating partnership subsidiary, MPT Operating Partnership, L.P., (the “Operating Partnership”) through which we conduct all of our operations, was formed in September 2003. Through another wholly-owned subsidiary, Medical Properties Trust, LLC, we are the sole general partner of the Operating Partnership. At present, we directly own substantially all of the limited partnership interests in the Operating Partnership and have elected to report our required disclosures and that of the Operating Partnership on a combined basis except where material differences exist. We have operated as a real estate investment trust (“REIT”) since April 6, 2004, and accordingly, elected REIT status upon the filing in September 2005 of the calendar year 2004 federal income tax return. Accordingly, we will generally not be subject to federal income tax in the United States (“U.S.”), provided that we continue to qualify as a REIT and our distributions to our stockholders equal or exceed our taxable income. Certain activities we undertake must be conducted by entities which we elected to be treated as taxable REIT subsidiaries (“TRSs”). Our TRSs are subject to both U.S. federal and state income taxes. For our properties located outside the U.S., we are subject to local taxes; however, we do not expect to incur additional taxes in the U.S. as such income will flow through our REIT. Our primary business strategy is to acquire and develop real estate and improvements, primarily for long-term lease to providers of healthcare services such as operators of general acute care hospitals, inpatient physical rehabilitation hospitals, long-term acute care hospitals, surgery centers, centers for treatment of specific conditions such as cardiac, pulmonary, cancer, and neurological hospitals, and other healthcare-oriented facilities. We also make mortgage and other loans to operators of similar facilities. In addition, we may obtain profits or equity interests in our tenants, from time to time, in order to enhance our overall return. We manage our business as a single business segment. All of our properties are located in the U.S. and Europe. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Statements For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. During the nine months ended September 30, 2016, there were no material changes to these policies. Recent Accounting Developments: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Leases In February 2016, the FASB issued ASU 2016-02 - Leases Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments Variable Interest Entities At September 30, 2016, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities, including Ernest Health, Inc. (“Ernest”). We have determined that we are not the primary beneficiary of these VIEs. The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs are presented below at September 30, 2016 (in thousands): VIE Type Maximum Loss Asset Type Carrying Loans, net $ 306,928 Mortgage and other loans $ 226,117 Equity investments $ 32,325 Other assets $ 207 (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. For the VIE types above, we do not consolidate the VIE because we do not have the ability to control the activities (such as the day-to-day healthcare operations of our borrower or investees) that most significantly impact the VIE’s economic performance. As of September 30, 2016, we were not required to provide any material financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash short falls). Typically, our loans are collateralized by assets of the borrower (some assets of which are on the premises of facilities owned by us) and further supported by limited guarantees made by certain principals of the borrower. See Note 3 and 7 for additional description of the nature, purpose and activities of our more significant VIEs and interests therein. |
Real Estate and Lending Activit
Real Estate and Lending Activities | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Real Estate and Lending Activities | 3. Real Estate and Lending Activities Acquisitions We acquired the following assets (in thousands): Nine Months 2016 2015 Assets Acquired Land and land improvements $ 13,874 $ 113,309 Building 125,472 711,805 Intangible lease assets — subject to amortization (weighted average useful life of 19.4 years in 2016 and 28.4 years in 2015) 10,754 144,900 Mortgage loans — 365,000 Net investments in direct financing leases 63,000 170,700 Other loans — 514,484 Total assets acquired $ 213,100 $ 2,020,198 Loans repaid (1) (93,262 ) (385,851 ) Total net assets acquired $ 119,838 $ 1,634,347 (1) $93.3 million loans advanced to Capella in 2015 and repaid in 2016 as a part of the Capella transaction. $385.9 million loans advanced to MEDIAN in 2014 and repaid in 2015 as a part of the MEDIAN transaction. The purchase price allocations attributable to certain 2016 acquisitions and acquisitions completed in the fourth quarter of 2015 are preliminary. When all relevant information is obtained, resulting changes, if any, to our provisional purchase price allocation will be retrospectively adjusted to reflect new information obtained about the facts and circumstances that existed as of the respective acquisition dates that, if known, would have affected the measurement of the amounts recognized as of those dates. 2016 Activity On July 22, 2016, we acquired an acute care facility in Olympia, Washington in exchange for a $93.3 million loan and an additional $7 million in cash, as contemplated in the August 2015 Capella Healthcare, Inc. (“Capella”) acquisition transaction. The terms of the Olympia lease are substantially similar to those of the master lease with Capella. See “2015 Activity” for a description of the August 2015 Capella Acquisition. Also, see the Capella Disposal Transaction under the subheading “Disposals” below for further details. On June 22, 2016, we closed on the final Median Kliniken S.à r.l., (“MEDIAN”) property for a purchase price of €41.6 million. See “2015 Activity” for a description of the initial MEDIAN Transaction. On May 2, 2016, we acquired an acute care hospital in Newark, New Jersey for an aggregate purchase price of $63 million leased to Prime Healthcare Services, Inc. (“Prime”) pursuant to a fifth master lease, which has a 15-year term with three five-year extension options, plus consumer-price indexed increases. Furthermore, we committed to advance an additional $30 million to Prime over a three-year period to be used solely for capital additions to the real estate; any such addition will be added to the basis upon which the lessee will pay us rents. From the respective acquisition dates, the properties acquired during the nine months ended September 30, 2016, contributed $4.6 million and $3.8 million of revenue and income (excluding related acquisition expenses), respectively, for the three months ended September 30, 2016. From the respective acquisition dates, the properties acquired during the nine months ended September 30, 2016 contributed $5.7 million and $4.9 million of revenue and income (excluding related acquisition expenses), respectively, for the nine months ended September 30, 2016. In addition, we incurred $2.4 million of acquisition-related costs on the 2016 acquisitions for the nine months ended September 30, 2016. On October 3, 2016, we closed on a portfolio of nine acute care hospitals in Massachusetts operated by Steward Health Care System LLC (“Steward”). Our investment in the portfolio includes the acquisition of five hospitals for $600 million, the making of $600 million in mortgage loans on four facilities and a $50 million minority equity contribution in Steward, for a combined investment of $1.25 billion. The five facilities acquired are being leased to Steward under a master lease agreement that has a 15-year term with three 5-year extension options, plus annual inflation-based escalators. The terms of the mortgage loan are substantially similar to the master lease. 2015 Activity Capella Acquisition On August 31, 2015, we closed on our acquisition of assets of and interests in Capella. Our investment in the Capella portfolio originally included seven acute care hospitals (two properties of which our investment was in the form of mortgage loans), an acquisition loan, and an equity interest in the operator for a combined purchase price and investment of approximately $900 million plus Capella’s cash on hand at the acquisition date. We closed on six of the seven Capella properties on August 31, 2015, two of which were in the form of mortgage loans, and we closed on the last property in the third quarter of 2016 (see discussion of the acquisition of the Olympia, Washington facility above). The remaining investment in the operations of Capella were in the form of an acquisition loan to Capella, which had a fixed interest rate of 8% and 49% interest in the equity of the operator, with management owning the remaining 51%. See subheading “Disposals” below for details of the disposal of our investment in Capella operations and further transactions. MEDIAN Transaction On April 29, 2015, we entered into a series of definitive agreements with MEDIAN, a German provider of post-acute and acute rehabilitation services, to acquire the real estate assets of 32 hospitals owned by MEDIAN for an aggregate purchase price of approximately €688 million. Upon acquisition, each property became subject to a master lease between us and MEDIAN providing for the leaseback of the property to MEDIAN. The master lease had an initial term of 27 years and provided for an initial GAAP lease rate of 9.3%, with annual escalators at the greater of one percent or 70% of the German consumer price index. MEDIAN is owned by an affiliate of Waterland Private Equity Fund V C.V. (“Waterland”), which acquired 94.9% of the outstanding equity interests in MEDIAN, and by a subsidiary of our operating partnership, which acquired the remaining 5.1% of the outstanding equity interests in MEDIAN, each in December 2014. In December 2014, we provided interim acquisition loans to affiliates of Waterland and MEDIAN in connection with Waterland’s acquisition of its stake in MEDIAN in an aggregate amount of approximately €425 million. In addition, we made further loans to MEDIAN during the first half of 2015 in an aggregate amount of approximately €240 million, which were used by MEDIAN to repay existing debt on properties we acquired. Closing of the sale-leaseback transactions began in the second quarter of 2015. At each closing, the purchase price for each facility was reduced and offset against the interim loans made to affiliates of Waterland and MEDIAN as described above and against the amount of any debt assumed or repaid by us in connection with the closing. As of September 30, 2015, we had closed on 30 properties for an aggregate amount of €627 million. Other Acquisitions On September 30, 2015, we provided a $100 million mortgage financing (of which $85 million had been funded through September 30, 2015 with an additional $15 million funded in the 2015 fourth quarter) to Prime for three general acute care hospitals and one free-standing emergency department and health center in New Jersey. The loan had a five-year term and provided for consumer-price indexed interest increases, subject to a floor. On October 21, 2016, we acquired these facilities (as originally contemplated in the agreements) by reducing the $100 million mortgage loan and advancing an additional $15 million. We are leasing these properties to Prime pursuant to a fifth master lease. On August 31, 2015, we closed on a $30 million mortgage loan transaction with Prime for the acquisition of Lake Huron Medical Center, a 144-bed general acute care hospital located in Port Huron, Michigan. The loan provided for consumer-price indexed interest increases, subject to a floor. The mortgage loan had a 5-year term with conversion rights to our standard sale leaseback agreement, which we exercised for $20 million on December 31, 2015, and reduced the mortgage loan accordingly. This facility is now leased to Prime pursuant to a fourth master lease. On June 16, 2015, we acquired the real estate of two facilities in Lubbock, Texas, a 60-bed inpatient rehabilitation hospital and a 37-bed long-term acute care hospital, for an aggregate purchase price of $31.5 million. We entered into a 20-year lease with Ernest for the rehabilitation hospital, which provided for three five-year extension options, and separately entered into a lease with Ernest for the long-term acute care hospital that had a final term ending December 31, 2034. In connection with the transaction, we funded an acquisition loan to Ernest of approximately $12.0 million. Ernest is operating the rehabilitation hospital in a joint venture with Covenant Health System. Effective July 18, 2016, we amended the lease of the rehabilitation hospital to include the long-term acute care hospital. Ernest’s plans are to convert the long-term acute care facility into a rehabilitation facility by the second quarter of 2017. On February 27, 2015, we acquired an inpatient rehabilitation hospital in Weslaco, Texas for $10.7 million leased to Ernest pursuant to the 2012 master lease which had an original 20-year fixed term and three five-year extension options. This lease provided for consumer-price indexed annual rent increases, subject to a floor and a cap. In addition, we agreed to fund an acquisition loan in the amount of $5 million. On February 13, 2015, we acquired two general acute care hospitals in the Kansas City area for $110 million. Prime is the tenant and operator pursuant to a master lease that has similar terms and security enhancements as the other master lease agreements entered into in 2013. This master lease had a 10-year initial fixed term with two extension options of five years each. The lease provided for consumer-price indexed annual rent increases, subject to a specified floor. In addition, we agreed to fund a mortgage loan in the amount of $40 million, which had a 10-year term. From the respective acquisition dates, the properties and mortgage loans acquired in 2015 contributed $30.0 million and $13.9 million of revenue and income (excluding related acquisition expenses), respectively, for the three months ended September 30, 2015. From the respective acquisition dates, the properties and mortgage loans acquired in 2015 contributed $59.2 million and $34.3 million of revenue and income (excluding related acquisition expenses), respectively, for the nine months ended September 30, 2015. In addition, we incurred $23.7 million and $52.9 million of acquisition related costs on the 2015 acquisitions for the three and nine months ended September 30, 2015, respectively. Pro Forma Information The following unaudited supplemental pro forma operating data is presented for the three and nine months ended September 30, 2016 and 2015, as if each acquisition (including the Steward investments completed subsequent to September 30, 2016) was completed on January 1, 2015. Supplemental pro forma earnings were adjusted to exclude acquisition-related costs on consummated deals incurred. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts). For the Three Months For the Nine Months 2016 2015 2016 2015 Total revenues $ 162.4 $ 156.5 $ 479.8 $ 480.1 Net income $ 73.3 $ 63.0 $ 206.3 $ 227.0 Net income per share/unit — diluted $ 0.23 $ 0.20 $ 0.64 $ 0.71 Development Activities During the first nine months of 2016, we completed construction and began recording rental income on the following facilities: • Adeptus Health, Inc. (“Adeptus Health”) – We completed 13 acute care facilities for this tenant during 2016. These facilities are leased pursuant to the master leases entered into in both 2014 and 2015 and are cross-defaulted with each other and with the original master lease executed in 2013. • Ernest Toledo – This inpatient rehabilitation facility located in Toledo, Ohio opened on April 1, 2016 and is being leased to Ernest pursuant to the original 2012 master lease. See table below for a status update on our current domestic development projects (in thousands): Operator Commitment Costs Incurred as of 09/30/16 Estimated Completion Date Adeptus Health $ 32,684 $ 18,472 4Q 2016 Adeptus Health 11,578 2,860 1Q 2017 Adeptus Health 69,801 29,616 2Q 2017 Ernest Health 28,067 3,206 3Q 2017 Adeptus Health 59,054 — Various $ 201,184 $ 54,154 On September 9, 2015, we acquired the real estate of a general acute care hospital under development located in Spain, for an aggregate purchase and development price to us of approximately €21.4 million. The acquisition was effected through a joint venture between us and clients of AXA Real Estate, in which we own a 50% interest. Upon completion, the facility will be leased to a Spanish operator of acute care hospitals, pursuant to a long-term lease. We expect construction to complete on this facility in the second quarter of 2017. Disposals 2016 Activity Capella Disposal Transaction On March 21, 2016, we entered into definitive agreements with RegionalCare Hospital Partners, Inc. (“RegionalCare”), an affiliate of certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”), under which our investment in the operations of Capella would be merged with RegionalCare, forming RCCH Healthcare Partners (“RCCH”). On April 29, 2016, this transaction closed and funded, effective April 30, 2016. As part of the transaction, we received net proceeds of approximately $550 million including approximately $492 million for our equity investment and loans made as part of the original Capella acquisition that closed on August 31, 2015. In addition, we received $210 million in prepayment of two mortgage loans for hospitals in Russellville, Arkansas, and Lawton, Oklahoma, that we made to subsidiaries of Capella in connection with the Capella transaction on August 31, 2015. We made a new $93.3 million loan for a hospital property in Olympia, Washington (which was subsequently converted to real estate on July 22, 2016 as disclosed above). Additionally, we and an Apollo affiliate invested $50 million each in unsecured senior notes issued by RegionalCare, which we sold to a large institution on June 20, 2016 at par. The proceeds from this transaction represented the recoverability of our investment in full, except for transaction costs incurred of $6.3 million. We maintained our ownership of five Capella hospitals in Hot Springs, Arkansas; Camden, South Carolina; Hartsville, South Carolina; Muskogee, Oklahoma; and McMinnville, Oregon. Pursuant to the transaction described above, the underlying leases, one of which is a master lease covering all but one property, was amended to shorten the initial fixed lease term, increase the security deposit, and eliminate the lessees’ purchase option provisions. Due to this lease amendment, we reclassified the lease of the properties under the master lease from a direct financing lease (“DFL”) to an operating lease. This reclassification resulted in a write-off of $2.6 million in unbilled DFL rent in the 2016 second quarter. Post Acute Transaction On May 23, 2016, we sold five properties (three of which were in Texas and two in Louisiana) that were leased and operated by Post Acute Medical (“Post Acute”). As part of this transaction, our outstanding loans of $4 million were paid in full, and we recovered our investment in the operations. Total proceeds from this transaction were $71 million, resulting in a net gain of approximately $15 million. Corinth Transaction On June 17, 2016, we sold the Atrium Medical Center real estate located in Corinth, Texas, which was leased and operated by Corinth Investor Holdings. Total proceeds from the transaction were $28 million, resulting in a gain on the sale of real estate of approximately $8 million. This gain on real estate was offset by approximately $9 million of non-cash charges that included the write-off of our investment in the operations of the facility, straight-line rent receivables, and a lease intangible. HealthSouth Transaction On July 20, 2016, we sold three inpatient rehabilitation hospitals located in Texas and operated by HealthSouth Corporation (“HealthSouth”) for $111.5 million, resulting in a net gain of approximately $45 million. Summary of Operations for Disposed Assets in 2016 The properties sold during the year do not meet the definition of discontinued operations. However, the following represents the operating results (excluding gain on sale, transaction costs, and impairment or other non-cash charges) from these properties (excluding loans repaid in the Capella Disposal Transaction) for the periods presented (in thousands): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2016 2015 2016 2015 Revenues $ 244 $ 4,523 $ 7,851 $ 13,598 Real estate depreciation and amortization — (949 ) (1,754 ) (2,846 ) Property-related expenses — (10 ) (114 ) (82 ) Other income (expense) (24 ) 521 (92 ) 1,078 Income from real estate dispositions, net $ 220 $ 4,085 $ 5,891 $ 11,748 2015 Activity On July 30, 2015, we sold a long-term acute care facility in Luling, Texas for approximately $9.7 million, resulting in a gain of $1.5 million. Due to this sale, we wrote off $0.9 million of straight-line receivables. On August 5, 2015, we sold six wellness centers in the United States for total proceeds of approximately $9.5 million (of which $1.5 million is in the form of a note), resulting in a gain of $1.7 million. Due to this sale, we wrote off $0.9 million of billed rent receivables. With these disposals, we accelerated the amortization of the related lease intangible assets resulting in approximately $0.7 million of additional expense in the 2015 third quarter. Leasing Operations All of our leases are currently accounted for as operating leases except for the master lease of 15 Ernest facilities and six Prime facilities which are accounted for as DFLs. The components of our net investment in DFLs (which includes the Capella properties for 2015 only) consisted of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Minimum lease payments receivable $ 1,884,144 $ 2,587,912 Estimated residual values 292,647 393,097 Less: Unearned income (1,643,300 ) (2,354,013 ) Net investment in direct financing leases $ 533,491 $ 626,996 Twelve Oaks Facility In the third quarter of 2015, we sent notice of termination of the lease to the tenant at our Twelve Oaks facility due to payment default. As a result of terminating the lease, we recorded a charge of $1.9 million to write-off the straight-line rent receivables in the 2015 third quarter. In addition, we accelerated the amortization of the related lease intangible asset resulting in $0.5 million of additional expense in the 2015 third quarter. This former tenant has continued to occupy the facility. During the third quarter of 2016, the tenant paid us approximately $2.5 million representing substantially all of amounts owed to us and agreed to general terms of a new lease, which we expect to execute during the 2016 fourth quarter. The tenant is now current on all of its obligations to us through November 30, 2016. Although no assurances can be made that we will not have any impairment charges in the future, we believe our real estate investment in Twelve Oaks at September 30, 2016 is fully recoverable. Loans The following is a summary of our loans (in thousands): As of As of Mortgage loans $ 550,118 $ 757,581 Acquisition loans 122,161 610,469 Working capital and other loans 43,623 54,353 $ 715,902 $ 1,422,403 The decrease in our mortgage and acquisition loans are related to the Capella Disposal Transaction as discussed previously. Our non-mortgage loans typically consist of loans to our tenants for acquisitions and working capital purposes. At September 30, 2016, acquisition loans include our original $93.2 million loan to Ernest. On March 1, 2012, pursuant to our convertible note agreement, we converted $1.7 million of our $5.0 million convertible note into a 9.9% equity interest in the operator of our Hoboken University Medical Center facility. At September 30, 2016, $3.3 million remains outstanding on the convertible note, and we retain the option, subject to regulatory approvals, to convert this remainder into 15.1% of equity interest in the operator. Concentrations of Credit Risk Our revenue concentration for the nine months ended September 30, 2016 as compared to the prior year is as follows (dollars in thousands): Revenue by Operator For the Nine Months Ended For the Nine Months Ended Operators Total Percentage of Total Percentage of Prime $ 89,389 23.1 % $ 75,982 24.5 % MEDIAN 70,242 18.1 % 56,609 18.2 % Ernest 50,564 13.0 % 45,874 14.8 % RCCH 42,776 11.0 % 7,155 2.3 % Adeptus Health 25,873 6.7 % 12,982 4.2 % Revenue by U.S. State and Country For the Nine Months Ended For the Nine Months Ended U.S. States and Other Countries Total Percentage of Total Percentage of Texas $ 72,811 18.8 % $ 63,815 20.6 % California 49,724 12.8 % 49,595 16.0 % All other states 189,365 48.8 % 137,006 44.1 % Total U.S. $ 311,900 80.4 % $ 250,416 80.7 % Germany $ 72,718 18.8 % $ 56,609 18.2 % United Kingdom, Italy, and Spain 3,236 0.8 % 3,308 1.1 % Total International $ 75,954 19.6 % $ 59,917 19.3 % Grand Total $ 387,854 100.0 % $ 310,333 100.0 % From an asset basis, our concentration as of September 30, 2016 as compared to December 31, 2015 is as follows (dollars in thousands): Gross Assets by Operator As of September 30, 2016 As of December 31, 2015 Operators Total Percentage of Total Percentage of (A) (B) (A) (B) Steward $ 1,250,000 17.3 % $ — — Prime 1,142,760 15.9 % 1,032,353 17.1 % MEDIAN 1,054,568 14.6 % 1,031,039 17.1 % Ernest 622,416 8.6 % 579,182 9.6 % RCCH 564,509 7.8 % 1,059,989 17.6 % Gross Assets by U.S. State and Country As of September 30, 2016 As of December 31, 2015 U.S. States and Other Countries Total Percentage of Total Percentage of (A) (B) (A) (B) Massachusetts $ 1,250,000 17.3 % $ — — Texas 944,028 13.1 % 1,060,990 17.6 % California 542,892 7.5 % 547,085 9.1 % All other states 2,669,401 37.0 % 3,047,204 50.5 % Other domestic assets 251,587 3.5 % 177,317 2.9 % Total U.S. $ 5,657,908 78.4 % $ 4,832,596 80.1 % Germany $ 1,376,626 19.1 % $ 1,031,039 17.1 % United Kingdom, Italy, and Spain 156,226 2.1 % 161,317 2.7 % Other international assets 27,017 0.4 % 10,970 0.1 % Total International $ 1,559,869 21.6 % $ 1,203,326 19.9 % Grand Total $ 7,217,777 100.0 % $ 6,035,922 100.0 % (A) Gross Assets represents total assets plus accumulated depreciation/amortization assuming all real estate commitments (such as the Steward transaction and the commitments disclosed in Note 9) as of the period end are fully funded. (B) Includes both leased and loaned assets. On an individual property basis, we had no investment of any single property greater than 3.3% of our total gross assets as of September 30, 2016. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following is a summary of our debt (dollar amounts in thousands): As of September 30, 2016 As of December 31, 2015 Balance Interest Rate Balance Interest Rate Revolving credit facility $ — Variable $ 1,100,000 Variable 2006 Senior Unsecured Notes due 2016 60,000 5.675 % 125,000 Various 2011 Senior Unsecured Notes — — 450,000 6.875 % 2012 Senior Unsecured Notes due 2022: Principal amount 350,000 6.375 % 350,000 6.375 % Unamortized premium 1,902 2,168 351,902 352,168 2013 Senior Unsecured Notes due 2020(A) 224,700 5.750 % 217,240 5.750 % 2014 Senior Unsecured Notes due 2024 300,000 5.500 % 300,000 5.500 % 2015 Senior Unsecured Notes due 2022(A) 561,750 4.000 % 543,100 4.000 % 2016 Senior Unsecured Notes due 2024 500,000 6.375 % — — 2016 Senior Unsecured Notes due 2026 500,000 5.250 % — — Term loans 263,179 Various 263,400 Various $ 2,761,531 $ 3,350,908 Debt issue costs, net (32,982 ) (28,367 ) $ 2,728,549 $ 3,322,541 (A) These notes are Euro-denominated and reflect the exchange rate at September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2016 $ 60,078 (A) 2017 320 2018 12,781 2019 250,000 2020 224,700 Thereafter 2,211,750 Total $ 2,759,629 (A) The remaining $60 million of our 2006 Senior Unsecured Notes were paid in full on October 31, 2016. 2016 Activity On July 22, 2016, we completed a $500 million senior unsecured notes offering (“2026 Senior Unsecured Notes”). Interest on the notes is payable on February 1 and August 1 of each year, commencing on February 1, 2017. Interest on the notes is to be paid in cash at a rate of 5.25% per year. The notes mature on August 1, 2026. We may redeem some or all of the notes at any time prior to August 1, 2021 at a “make whole” redemption price. On or after August 1, 2021, we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to August 1, 2019, we may redeem up to 35% of the notes at a redemption price equal to 105.25% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. We used the net proceeds from the 2026 Senior Unsecured Notes offering to redeem our $450 million 2011 Senior Unsecured Notes. This redemption resulted in a $22.5 million debt refinancing charge during the 2016 third quarter, consisting of a $15.5 million redemption premium along with the write-off of deferred debt issuance costs associated with the redeemed notes. On February 22, 2016, we completed a $500 million senior unsecured notes offering (“2016 Senior Unsecured Notes”), proceeds of which were used to repay borrowings under our revolving credit facility. Interest on the notes is payable on March 1 and September 1 of each year, commencing on September 1, 2016. Interest on the notes is to be paid in cash at a rate of 6.375% per year. The notes mature on March 1, 2024. We may redeem some or all of the notes at any time prior to March 1, 2019 at a “make whole” redemption price. On or after March 1, 2019, we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to March 1, 2019, we may redeem up to 35% of the notes at a redemption price equal to 106.375% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. 2015 Activity On July 27, 2015, we received a commitment to provide a senior unsecured bridge loan facility in the original principal amount of $1.0 billion to fund the acquisition of Capella. Funding under the bridge facility was not necessary as we funded the acquisition through a combination of an equity issuance and other borrowings. However, we incurred and expensed certain customary structuring and underwriting fees of $3.9 million in the third quarter related to the bridge commitment. On August 19, 2015, we completed a €500 million senior unsecured notes offering (“2015 Senior Unsecured Notes”), proceeds of which were used to repay Euro-denominated borrowings under our credit facility and to fund our European investments. On September 30, 2015, we amended our credit facility to, among other things, increase the aggregate commitment under our revolver to its current level of $1.3 billion and increase the term loan portion to $250 million. In addition, this amendment included a new accordion feature that allows us to expand our credit facility by another $400 million for a total commitment of $1.95 billion. This amendment resulted in a $0.1 million expense in the 2015 third quarter. Other During the 2010 second quarter, we entered into interest rate swaps to manage our exposure to variable interest rates by fixing the interest rate on the outstanding amount of our 2006 Senior Unsecured Notes. In July 2016, $65 million of the 2006 Senior Unsecured Notes was paid in full and the related swap expired. For the remaining $60 million, the interest rate swap, which started October 31, 2011 (date on which the related interest rate turned variable) and will continue through the maturity date (or October 2016) fixed the interest rate at 5.675%. The fair value of the interest rate swaps was $0.4 million and $2.9 million as of September 30, 2016 and December 31, 2015, respectively, which is reflected in accounts payable and accrued expenses on the consolidated balance sheets. We account for interest rate swaps as cash flow hedges. Accordingly, the effective portion of changes in the fair value of our swaps is recorded as a component of accumulated other comprehensive income/loss on the balance sheet and reclassified into earnings in the same period, or periods, during which the hedged transactions effect earnings, while any ineffective portion is recorded through earnings immediately. We did not have any hedge ineffectiveness from inception of our interest rate swaps through September 30, 2016 and therefore, there was no income statement effect recorded during the three and nine month periods ended September 30, 2016 or 2015. We do expect current losses included in accumulated other comprehensive loss to be reclassified into earnings in October 2016. At September 30, 2016 and December 31, 2015, we have posted $0.4 million and $1.7 million, respectively, of collateral related to our interest rate swaps, which is reflected in other assets on our consolidated balance sheets. Covenants Our debt facilities impose certain restrictions on us, including restrictions on our ability to: incur debts; create or incur liens; provide guarantees in respect of obligations of any other entity; make redemptions and repurchases of our capital stock; prepay, redeem or repurchase debt; engage in mergers or consolidations; enter into affiliated transactions; dispose of real estate or other assets; and change our business. In addition, the credit agreements governing our revolving credit facility and term loan limit the amount of dividends we can pay as a percentage of normalized adjusted funds from operations (“FFO”), as defined in the agreements, on a rolling four quarter basis. At September 30, 2016, the dividend restriction was 95% of normalized adjusted FFO. The indentures governing our senior unsecured notes also limit the amount of dividends we can pay based on the sum of 95% of funds from operations, proceeds of equity issuances and certain other net cash proceeds. Finally, our senior unsecured notes require us to maintain total unencumbered assets (as defined in the related indenture) of not less than 150% of our unsecured indebtedness. In addition to these restrictions, the revolving credit facility and term loan contain customary financial and operating covenants, including covenants relating to our total leverage ratio, fixed charge coverage ratio, secured leverage ratio, consolidated adjusted net worth, unsecured leverage ratio, and unsecured interest coverage ratio. This facility also contains customary events of default, including among others, nonpayment of principal or interest, material inaccuracy of representations and failure to comply with our covenants. If an event of default occurs and is continuing under the facility, the entire outstanding balance may become immediately due and payable. At September 30, 2016, we were in compliance with all such financial and operating covenants. |
Common Stock_Partners' Capital
Common Stock/Partners' Capital | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Common Stock/Partners' Capital | 5. Common Stock/Partners’ Capital Medical Properties Trust, Inc. On October 7, 2016, we sold 10.3 million shares of common stock in a private placement with an affiliate of Cerberus Capital Management (“Cerberus”), the controlling member of Steward. We sold these shares at a price per share of $14.50, equal to the public offering price of our September 2016 equity offering, generating total proceeds of approximately $150 million. On September 30, 2016, we completed an underwritten public offering of 57.5 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 7.5 million shares) of our common stock, resulting in net proceeds of $799.5 million, after deducting estimated offering expenses. On March 1, 2016, we updated our at-the-market equity offering program, which gave us the ability to sell up to $227 million of stock with a commission rate of 1.25%. During the nine months ended September 30, 2016, we sold approximately 15 million shares of our common stock under this program, resulting in net proceeds of approximately $224 million, after deducting approximately $2.8 million of commissions. We have no capacity to sell additional shares under this at-the-market equity offering program. On August 11, 2015, we completed an underwritten public offering of 28.75 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 3.75 million shares) of our common stock, resulting in net proceeds of $337 million, after deducting estimated offering expenses. On January 14, 2015, we completed an underwritten public offering of 34.5 million shares (including the exercise of the underwriters’ 30-day option to purchase an additional 4.5 million shares) of our common stock, resulting in net proceeds of approximately $480 million, after deducting estimated offering expenses. MPT Operating Partnership, L.P. At September 30, 2016, the Company has a 99.87% ownership interest in the Operating Partnership with the remainder owned by three other partners, two of whom are employees and one of whom is a director. During the nine months ended September 30, 2016 and 2015, the Operating Partnership issued 72.5 million units and 63.25 million units, respectively, in direct response to the common stock offerings by Medical Properties Trust, Inc. |
Stock Awards
Stock Awards | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Awards | 6. Stock Awards We adopted the 2013 Equity Incentive Plan (the “Equity Incentive Plan”) during the second quarter of 2013, which authorizes the issuance of common stock options, restricted stock, restricted stock units, deferred stock units, stock appreciation rights, performance units and awards of interests in our Operating Partnership. The Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. We have reserved 8,196,770 shares of common stock for awards under the Equity Incentive Plan for which 4,763,066 shares remain available for future stock awards as of September 30, 2016. We awarded the following stock awards during 2016 and 2015: Time-based awards Performance-based awards Multi-year Performance-based awards |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments We have various assets and liabilities that are considered financial instruments. We estimate that the carrying value of cash and cash equivalents, and accounts payable and accrued expenses approximate their fair values. Included in our accounts payable and accrued expenses are our interest rate swaps, which are recorded at fair value based on Level 2 observable market assumptions using standardized derivative pricing models. We estimate the fair value of our interest and rent receivables using Level 2 inputs such as discounting the estimated future cash flows using the current rates at which similar receivables would be made to others with similar credit ratings and for the same remaining maturities. The fair value of our mortgage loans and working capital loans are estimated by using Level 2 inputs such as discounting the estimated future cash flows using the current rates which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. We determine the fair value of our senior unsecured notes (excluding our 2006 Senior Unsecured Notes) using Level 2 inputs such as quotes from securities dealers and market makers. We estimate the fair value of our 2006 Senior Unsecured Notes, our revolving credit facility, and term loans using Level 2 inputs based on the present value of future payments, discounted at a rate which we consider appropriate for such debt. Fair value estimates are made at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. Settlement of such fair value amounts may not be possible and may not be a prudent management decision. The following table summarizes fair value estimates for our financial instruments (in thousands): September 30, 2016 December 31, 2015 Asset (Liability) Book Fair Book Fair Interest and rent receivables $ 54,554 $ 54,522 $ 46,939 $ 46,858 Loans (1) 496,767 529,053 508,851 543,859 Debt, net (2,728,549 ) (2,875,619 ) (3,322,541 ) (3,372,773 ) (1) Excludes loans related to Ernest and Capella (2015 only) since they are recorded at fair value and discussed below. Items Measured at Fair Value on a Recurring Basis Our equity interest in Ernest and related loans, which were acquired in 2012, are being measured at fair value on a recurring basis as we elected to account for these investments using the fair value option method. We have elected to account for these investments at fair value due to the size of the investments and because we believe this method is more reflective of current values. We have not made a similar election for other equity interests or loans made in or prior to 2016, except for our investments in Capella that were disposed of in the 2016 second quarter. At September 30, 2016, these amounts were as follows (in thousands): Asset Type Fair Cost Asset Type Mortgage loans $ 102,550 $ 102,550 Mortgage loans Acquisition and other loans 116,585 116,585 Other loans Equity investments 3,300 3,300 Other assets $ 222,435 $ 222,435 Our mortgage loans with Ernest are recorded at fair value based on Level 2 inputs by discounting the estimated cash flows using the market rates which similar loans would be made to borrowers with similar credit ratings and the same remaining maturities. Our acquisition loans and equity investments in Ernest are recorded at fair value based on Level 3 inputs, by using a discounted cash flow model, which requires significant estimates of our investee such as projected revenue and expenses and appropriate consideration of the underlying risk profile of the forecast assumptions associated with the investee. We classify these loans and equity investments as Level 3, as we use certain unobservable inputs to the valuation methodology that are significant to the fair value measurement, and the valuation requires management judgment due to the absence of quoted market prices. For these cash flow models, our observable inputs include use of a capitalization rate, discount rate (which is based on a weighted-average cost of capital), and market interest rates, and our unobservable input includes an adjustment for a marketability discount (“DLOM”) on our equity investment of 40% at September 30, 2016. In regards to the underlying projection of revenues and expenses used in the discounted cash flow model, such projections are provided by Ernest. However, we will modify such projections (including underlying assumptions used) as needed based on our review and analysis of Ernest’s historical results, meetings with key members of management, and our understanding of trends and developments within the healthcare industry. In arriving at the DLOM, we started with a DLOM range based on the results of studies supporting valuation discounts for other transactions or structures without a public market. To select the appropriate DLOM within the range, we then considered many qualitative factors including the percent of control, the nature of the underlying investee’s business along with our rights as an investor pursuant to the operating agreement, the size of investment, expected holding period, number of shareholders, access to capital marketplace, etc. To illustrate the effect of movements in the DLOM, we performed a sensitivity analysis below by using basis point variations (dollars in thousands): Basis Point Change in Marketability Discount Estimated Increase (Decrease) +100 basis points $ (61 ) - 100 basis points 61 Because the fair value of Ernest investments noted above approximate their original cost, we did not recognize any unrealized gains/losses during the first nine months of 2016 or 2015. |
Earnings Per Share_Common Unit
Earnings Per Share/Common Unit | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share/Common Unit | 8. Earnings Per Share/Common Unit Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (in thousands): For the Three Months 2016 2015 Numerator: Income from continuing operations $ 70,543 $ 23,123 Non-controlling interests’ share in continuing operations (185 ) (66 ) Participating securities’ share in earnings (154 ) (265 ) Income from continuing operations, less participating securities’ share in earnings 70,204 22,792 Income from discontinued operations attributable to MPT common stockholders — — Net income, less participating securities’ share in earnings $ 70,204 $ 22,792 Denominator: Basic weighted-average common shares 246,230 223,948 Dilutive potential common shares 1,238 — Dilutive weighted-average common 247,468 223,948 For the Nine Months 2016 2015 Numerator: Income from continuing operations $ 182,693 $ 81,589 Non-controlling interests’ share in continuing operations (683 ) (228 ) Participating securities’ share in earnings (430 ) (781 ) Income from continuing operations, less participating securities’ share in earnings 181,580 80,580 Loss from discontinued operations attributable to MPT common stockholders (1 ) — Net income, less participating securities’ share in earnings $ 181,579 $ 80,580 Denominator: Basic weighted-average common shares 240,607 211,659 Dilutive potential common shares 825 409 Dilutive weighted-average common 241,432 212,068 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (in thousands): For the Three Months 2016 2015 Numerator: Income from continuing operations $ 70,543 $ 23,123 Non-controlling interests’ share in continuing operations (185 ) (66 ) Participating securities’ share in earnings (154 ) (265 ) Income from continuing operations, less participating securities’ share in earnings 70,204 22,792 Income from discontinued operations attributable to MPT Operating Partnership partners — — Net income, less participating securities’ share in earnings $ 70,204 $ 22,792 Denominator: Basic weighted-average units 246,230 223,948 Dilutive potential units 1,238 — Dilutive weighted-average units 247,468 223,948 For the Nine Months 2016 2015 Numerator: Income from continuing operations $ 182,693 $ 81,589 Non-controlling interests’ share in continuing operations (683 ) (228 ) Participating securities’ share in earnings (430 ) (781 ) Income from continuing operations, less participating securities’ share in earnings 181,580 80,580 Loss from discontinued operations attributable to MPT Operating Partnership partners (1 ) — Net income, less participating securities’ share in earnings $ 181,579 $ 80,580 Denominator: Basic weighted-average units 240,607 211,659 Dilutive potential units 825 409 Dilutive weighted-average units 241,432 212,068 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Commitments On July 20, 2016, we entered into definitive agreements to acquire 23 rehabilitation hospitals in Germany for an aggregate purchase price to us of approximately €215.7 million. Upon closing, the facilities will be leased to affiliates of MEDIAN, pursuant to a long-term master lease. Closing of the transaction, which is expected to begin during the fourth quarter of 2016, is subject to customary real estate, regulatory and other closing conditions. On September 9, 2016, we entered into definitive agreements to acquire six rehabilitation hospitals in Germany for an aggregate purchase price to us of approximately €46.3 million. Upon closing, the facilities will be leased to affiliates of MEDIAN, pursuant to a long-term master lease. Closing of the transaction, which is expected during the fourth quarter of 2016, is subject to customary real estate, regulatory and other closing conditions. Subsequent to September 30, 2016, we closed on three of the six facilities in the amount of €22.9 million. On September 28, 2016, we entered into definitive agreements to acquire two acute care hospitals in Washington and Idaho for an aggregate purchase price to us of approximately $105 million. Upon closing, the facilities will be leased to RCCH, pursuant to the current master lease. Closing of the transaction, which is expected to be completed by the first quarter of 2017, is subject to customary real estate, regulatory and other closing conditions. Contingencies We are a party to various legal proceedings incidental to our business. In the opinion of management, after consultation with legal counsel, the ultimate liability, if any, with respect to those proceedings is not presently expected to materially affect our financial position, results of operations or cash flows. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements For information about significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. During the nine months ended September 30, 2016, there were no material changes to these policies. |
Recent Accounting Developments | Recent Accounting Developments: Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Leases In February 2016, the FASB issued ASU 2016-02 - Leases Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments |
Variable Interest Entities | Variable Interest Entities At September 30, 2016, we had loans to and/or equity investments in certain variable interest entities (“VIEs”), which are also tenants of our facilities, including Ernest Health, Inc. (“Ernest”). We have determined that we are not the primary beneficiary of these VIEs. The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs are presented below at September 30, 2016 (in thousands): VIE Type Maximum Loss Asset Type Carrying Loans, net $ 306,928 Mortgage and other loans $ 226,117 Equity investments $ 32,325 Other assets $ 207 (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. For the VIE types above, we do not consolidate the VIE because we do not have the ability to control the activities (such as the day-to-day healthcare operations of our borrower or investees) that most significantly impact the VIE’s economic performance. As of September 30, 2016, we were not required to provide any material financial support through a liquidity arrangement or otherwise to our unconsolidated VIEs, including circumstances in which it could be exposed to further losses (e.g., cash short falls). Typically, our loans are collateralized by assets of the borrower (some assets of which are on the premises of facilities owned by us) and further supported by limited guarantees made by certain principals of the borrower. See Note 3 and 7 for additional description of the nature, purpose and activities of our more significant VIEs and interests therein. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Carrying Value and Classification of Related Assets and Maximum Exposure to Loss | The carrying value and classification of the related assets and maximum exposure to loss as a result of our involvement with these VIEs are presented below at September 30, 2016 (in thousands): VIE Type Maximum Loss Asset Type Carrying Loans, net $ 306,928 Mortgage and other loans $ 226,117 Equity investments $ 32,325 Other assets $ 207 (1) Our maximum loss exposure related to loans with VIEs represents our current aggregate gross carrying value of the loan plus accrued interest and any other related assets (such as rent receivables), less any liabilities. Our maximum loss exposure related to our equity investment in VIEs represents the current carrying values of such investment plus any other related assets (such as rent receivables) less any liabilities. (2) Carrying amount reflects the net book value of our loan or equity interest only in the VIE. |
Real Estate and Lending Activ18
Real Estate and Lending Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Assets Acquired | We acquired the following assets (in thousands): Nine Months 2016 2015 Assets Acquired Land and land improvements $ 13,874 $ 113,309 Building 125,472 711,805 Intangible lease assets — subject to amortization (weighted average useful life of 19.4 years in 2016 and 28.4 years in 2015) 10,754 144,900 Mortgage loans — 365,000 Net investments in direct financing leases 63,000 170,700 Other loans — 514,484 Total assets acquired $ 213,100 $ 2,020,198 Loans repaid (1) (93,262 ) (385,851 ) Total net assets acquired $ 119,838 $ 1,634,347 (1) $93.3 million loans advanced to Capella in 2015 and repaid in 2016 as a part of the Capella transaction. $385.9 million loans advanced to MEDIAN in 2014 and repaid in 2015 as a part of the MEDIAN transaction. |
Schedule of Unaudited Supplemental Pro Forma Operating Data | The following unaudited supplemental pro forma operating data is presented for the three and nine months ended September 30, 2016 and 2015, as if each acquisition (including the Steward investments completed subsequent to September 30, 2016) was completed on January 1, 2015. Supplemental pro forma earnings were adjusted to exclude acquisition-related costs on consummated deals incurred. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts). For the Three Months For the Nine Months 2016 2015 2016 2015 Total revenues $ 162.4 $ 156.5 $ 479.8 $ 480.1 Net income $ 73.3 $ 63.0 $ 206.3 $ 227.0 Net income per share/unit — diluted $ 0.23 $ 0.20 $ 0.64 $ 0.71 |
Summary of Status Update on Current Development Projects | See table below for a status update on our current domestic development projects (in thousands): Operator Commitment Costs Incurred as of 09/30/16 Estimated Completion Date Adeptus Health $ 32,684 $ 18,472 4Q 2016 Adeptus Health 11,578 2,860 1Q 2017 Adeptus Health 69,801 29,616 2Q 2017 Ernest Health 28,067 3,206 3Q 2017 Adeptus Health 59,054 — Various $ 201,184 $ 54,154 |
Summary of Operations for Disposed Assets in 2016 | The properties sold during the year do not meet the definition of discontinued operations. However, the following represents the operating results (excluding gain on sale, transaction costs, and impairment or other non-cash charges) from these properties (excluding loans repaid in the Capella Disposal Transaction) for the periods presented (in thousands): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2016 2015 2016 2015 Revenues $ 244 $ 4,523 $ 7,851 $ 13,598 Real estate depreciation and amortization — (949 ) (1,754 ) (2,846 ) Property-related expenses — (10 ) (114 ) (82 ) Other income (expense) (24 ) 521 (92 ) 1,078 Income from real estate dispositions, net $ 220 $ 4,085 $ 5,891 $ 11,748 |
Components of Net Investment in Direct Financing Leases | The components of our net investment in DFLs (which includes the Capella properties for 2015 only) consisted of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Minimum lease payments receivable $ 1,884,144 $ 2,587,912 Estimated residual values 292,647 393,097 Less: Unearned income (1,643,300 ) (2,354,013 ) Net investment in direct financing leases $ 533,491 $ 626,996 |
Summary of Loans | The following is a summary of our loans (in thousands): As of As of Mortgage loans $ 550,118 $ 757,581 Acquisition loans 122,161 610,469 Working capital and other loans 43,623 54,353 $ 715,902 $ 1,422,403 |
Schedule of Revenue by Operator | Revenue by Operator For the Nine Months Ended For the Nine Months Ended Operators Total Percentage of Total Percentage of Prime $ 89,389 23.1 % $ 75,982 24.5 % MEDIAN 70,242 18.1 % 56,609 18.2 % Ernest 50,564 13.0 % 45,874 14.8 % RCCH 42,776 11.0 % 7,155 2.3 % Adeptus Health 25,873 6.7 % 12,982 4.2 % |
Schedule of Revenue from External Customers by Geographic Areas | Revenue by U.S. State and Country For the Nine Months Ended For the Nine Months Ended U.S. States and Other Countries Total Percentage of Total Percentage of Texas $ 72,811 18.8 % $ 63,815 20.6 % California 49,724 12.8 % 49,595 16.0 % All other states 189,365 48.8 % 137,006 44.1 % Total U.S. $ 311,900 80.4 % $ 250,416 80.7 % Germany $ 72,718 18.8 % $ 56,609 18.2 % United Kingdom, Italy, and Spain 3,236 0.8 % 3,308 1.1 % Total International $ 75,954 19.6 % $ 59,917 19.3 % Grand Total $ 387,854 100.0 % $ 310,333 100.0 % |
Schedule of Gross Assets by Operator | Gross Assets by Operator As of September 30, 2016 As of December 31, 2015 Operators Total Percentage of Total Percentage of (A) (B) (A) (B) Steward $ 1,250,000 17.3 % $ — — Prime 1,142,760 15.9 % 1,032,353 17.1 % MEDIAN 1,054,568 14.6 % 1,031,039 17.1 % Ernest 622,416 8.6 % 579,182 9.6 % RCCH 564,509 7.8 % 1,059,989 17.6 % |
Schedule of Gross Assets by Geographic Areas | Gross Assets by U.S. State and Country As of September 30, 2016 As of December 31, 2015 U.S. States and Other Countries Total Percentage of Total Percentage of (A) (B) (A) (B) Massachusetts $ 1,250,000 17.3 % $ — — Texas 944,028 13.1 % 1,060,990 17.6 % California 542,892 7.5 % 547,085 9.1 % All other states 2,669,401 37.0 % 3,047,204 50.5 % Other domestic assets 251,587 3.5 % 177,317 2.9 % Total U.S. $ 5,657,908 78.4 % $ 4,832,596 80.1 % Germany $ 1,376,626 19.1 % $ 1,031,039 17.1 % United Kingdom, Italy, and Spain 156,226 2.1 % 161,317 2.7 % Other international assets 27,017 0.4 % 10,970 0.1 % Total International $ 1,559,869 21.6 % $ 1,203,326 19.9 % Grand Total $ 7,217,777 100.0 % $ 6,035,922 100.0 % (A) Gross Assets represents total assets plus accumulated depreciation/amortization assuming all real estate commitments (such as the Steward transaction and the commitments disclosed in Note 9) as of the period end are fully funded. (B) Includes both leased and loaned assets. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following is a summary of our debt (dollar amounts in thousands): As of September 30, 2016 As of December 31, 2015 Balance Interest Rate Balance Interest Rate Revolving credit facility $ — Variable $ 1,100,000 Variable 2006 Senior Unsecured Notes due 2016 60,000 5.675 % 125,000 Various 2011 Senior Unsecured Notes — — 450,000 6.875 % 2012 Senior Unsecured Notes due 2022: Principal amount 350,000 6.375 % 350,000 6.375 % Unamortized premium 1,902 2,168 351,902 352,168 2013 Senior Unsecured Notes due 2020(A) 224,700 5.750 % 217,240 5.750 % 2014 Senior Unsecured Notes due 2024 300,000 5.500 % 300,000 5.500 % 2015 Senior Unsecured Notes due 2022(A) 561,750 4.000 % 543,100 4.000 % 2016 Senior Unsecured Notes due 2024 500,000 6.375 % — — 2016 Senior Unsecured Notes due 2026 500,000 5.250 % — — Term loans 263,179 Various 263,400 Various $ 2,761,531 $ 3,350,908 Debt issue costs, net (32,982 ) (28,367 ) $ 2,728,549 $ 3,322,541 (A) These notes are Euro-denominated and reflect the exchange rate at September 30, 2016 and December 31, 2015, respectively. |
Principal Payments Due on Debt | As of September 30, 2016, principal payments due on our debt (which exclude the effects of any discounts, premiums, or debt issue costs recorded) are as follows (in thousands): 2016 $ 60,078 (A) 2017 320 2018 12,781 2019 250,000 2020 224,700 Thereafter 2,211,750 Total $ 2,759,629 (A) The remaining $60 million of our 2006 Senior Unsecured Notes were paid in full on October 31, 2016. |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Information of Financial Instruments | The following table summarizes fair value estimates for our financial instruments (in thousands): September 30, 2016 December 31, 2015 Asset (Liability) Book Fair Book Fair Interest and rent receivables $ 54,554 $ 54,522 $ 46,939 $ 46,858 Loans (1) 496,767 529,053 508,851 543,859 Debt, net (2,728,549 ) (2,875,619 ) (3,322,541 ) (3,372,773 ) (1) Excludes loans related to Ernest and Capella (2015 only) since they are recorded at fair value and discussed below. |
Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis | At September 30, 2016, these amounts were as follows (in thousands): Asset Type Fair Cost Asset Type Mortgage loans $ 102,550 $ 102,550 Mortgage loans Acquisition and other loans 116,585 116,585 Other loans Equity investments 3,300 3,300 Other assets $ 222,435 $ 222,435 |
Summary Showing Sensitivity Analysis by Using Basis Point Variations | To illustrate the effect of movements in the DLOM, we performed a sensitivity analysis below by using basis point variations (dollars in thousands): Basis Point Change in Marketability Discount Estimated Increase (Decrease) +100 basis points $ (61 ) - 100 basis points 61 |
Earnings Per Share_Common Unit
Earnings Per Share/Common Unit (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Medical Properties Trust, Inc. Our earnings per share were calculated based on the following (in thousands): For the Three Months 2016 2015 Numerator: Income from continuing operations $ 70,543 $ 23,123 Non-controlling interests’ share in continuing operations (185 ) (66 ) Participating securities’ share in earnings (154 ) (265 ) Income from continuing operations, less participating securities’ share in earnings 70,204 22,792 Income from discontinued operations attributable to MPT common stockholders — — Net income, less participating securities’ share in earnings $ 70,204 $ 22,792 Denominator: Basic weighted-average common shares 246,230 223,948 Dilutive potential common shares 1,238 — Dilutive weighted-average common 247,468 223,948 For the Nine Months 2016 2015 Numerator: Income from continuing operations $ 182,693 $ 81,589 Non-controlling interests’ share in continuing operations (683 ) (228 ) Participating securities’ share in earnings (430 ) (781 ) Income from continuing operations, less participating securities’ share in earnings 181,580 80,580 Loss from discontinued operations attributable to MPT common stockholders (1 ) — Net income, less participating securities’ share in earnings $ 181,579 $ 80,580 Denominator: Basic weighted-average common shares 240,607 211,659 Dilutive potential common shares 825 409 Dilutive weighted-average common 241,432 212,068 MPT Operating Partnership, L.P. Our earnings per common unit were calculated based on the following (in thousands): For the Three Months 2016 2015 Numerator: Income from continuing operations $ 70,543 $ 23,123 Non-controlling interests’ share in continuing operations (185 ) (66 ) Participating securities’ share in earnings (154 ) (265 ) Income from continuing operations, less participating securities’ share in earnings 70,204 22,792 Income from discontinued operations attributable to MPT Operating Partnership partners — — Net income, less participating securities’ share in earnings $ 70,204 $ 22,792 Denominator: Basic weighted-average units 246,230 223,948 Dilutive potential units 1,238 — Dilutive weighted-average units 247,468 223,948 For the Nine Months 2016 2015 Numerator: Income from continuing operations $ 182,693 $ 81,589 Non-controlling interests’ share in continuing operations (683 ) (228 ) Participating securities’ share in earnings (430 ) (781 ) Income from continuing operations, less participating securities’ share in earnings 181,580 80,580 Loss from discontinued operations attributable to MPT Operating Partnership partners (1 ) — Net income, less participating securities’ share in earnings $ 181,579 $ 80,580 Denominator: Basic weighted-average units 240,607 211,659 Dilutive potential units 825 409 Dilutive weighted-average units 241,432 212,068 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Carrying Value and Classification of Related Assets and Maximum Exposure to Loss (Detail) | Sep. 30, 2016USD ($) |
Mortgage and other loans [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | $ 226,117,000 |
Loans, net [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | 306,928,000 |
Other Assets [Member] | |
Variable Interest Entity [Line Items] | |
Carrying Amount | 207,000 |
Equity investments [Member] | |
Variable Interest Entity [Line Items] | |
Maximum Loss Exposure | $ 32,325,000 |
Real Estate and Lending Activ23
Real Estate and Lending Activities - Assets Acquired (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||
Total assets acquired | $ 213,100 | $ 2,020,198 |
Loans repaid | (93,262) | (385,851) |
Total net assets acquired | 119,838 | 1,634,347 |
Land and Land Improvements [Member] | ||
Business Acquisition [Line Items] | ||
Total assets acquired | 13,874 | 113,309 |
Building [Member] | ||
Business Acquisition [Line Items] | ||
Total assets acquired | 125,472 | 711,805 |
Intangible Lease Assets - Subject to Amortization [Member] | ||
Business Acquisition [Line Items] | ||
Total assets acquired | 10,754 | 144,900 |
Net Investments in Direct Financing Leases [Member] | ||
Business Acquisition [Line Items] | ||
Total assets acquired | $ 63,000 | 170,700 |
Other Loans [Member] | ||
Business Acquisition [Line Items] | ||
Total assets acquired | 514,484 | |
Mortgage Loans [Member] | ||
Business Acquisition [Line Items] | ||
Total assets acquired | $ 365,000 |
Real Estate and Lending Activ24
Real Estate and Lending Activities - Assets Acquired (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Loans repaid | $ 93,262 | $ 385,851 |
Intangible Lease Assets - Subject to Amortization [Member] | ||
Business Acquisition [Line Items] | ||
Weighted average useful life of acquired intangible lease assets (in years) | 19 years 4 months 24 days | 28 years 4 months 24 days |
Capella [Member] | ||
Business Acquisition [Line Items] | ||
Loans repaid | $ 93,262 | |
Median [Member] | ||
Business Acquisition [Line Items] | ||
Loans repaid | $ 385,851 |
Real Estate and Lending Activ25
Real Estate and Lending Activities - 2016 Activity - Additional Information (Detail) € in Thousands, $ in Thousands | Oct. 03, 2016USD ($)FacilityRenewalOptionsHospital | Jun. 22, 2016EUR (€) | May 02, 2016USD ($)RenewalOptions | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||||
Loans repaid | $ 93,262 | $ 385,851 | $ 93,262 | $ 385,851 | |||
Acquisition related costs | 2,677 | 24,949 | 6,379 | 56,997 | |||
Median [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Loans repaid | $ 385,851 | $ 385,851 | |||||
2016 [Member] | Median [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Value of properties closed | € | € 41,600 | ||||||
2016 [Member] | Steward [Member] | Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Loans repaid | $ 600,000 | ||||||
Cash paid for acquisition transaction | $ 600,000 | ||||||
Term of lease, years | 15 years | ||||||
Number of lease extension options | RenewalOptions | 3 | ||||||
Number of hospitals closed | Hospital | 9 | ||||||
Combined purchase price and investment amount | $ 1,250,000 | ||||||
Number of licensed hospitals | Hospital | 5 | ||||||
Equity interest acquired | $ 50,000 | ||||||
Number of facilities for making mortgage loans | Facility | 4 | ||||||
Acute Care Hospital [Member] | 2016 [Member] | New Jersey [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Term of lease, years | 15 years | ||||||
Number of lease extension options | RenewalOptions | 3 | ||||||
Commitment to advance an additional amount for capital additions | $ 30,000 | ||||||
Commitment period to advance an additional amount for capital additions | 3 years | ||||||
Acquisition costs | $ 63,000 | ||||||
Business Acquisitions [Member] | 2016 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Revenue contributed by the acquired entity | 4,600 | 5,700 | |||||
Acquisition related costs | 2,400 | ||||||
Income contributed by the acquired entity | 3,800 | 4,900 | |||||
Capella [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Loans repaid | $ 93,262 | $ 93,262 | |||||
Capella [Member] | 2016 [Member] | Olympia, Washington [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Loans repaid | € | 93,262 | ||||||
Cash paid for acquisition transaction | € | € 7,000 |
Real Estate and Lending Activ26
Real Estate and Lending Activities - 2015 Activity - Additional Information (Detail) $ in Thousands, € in Millions | Sep. 30, 2015USD ($)PropertyHospital | Aug. 31, 2015USD ($)InvestmentBed | Jun. 16, 2015USD ($)RenewalOptionsPropertyBed | Apr. 29, 2015EUR (€)Hospital | Feb. 27, 2015USD ($)RenewalOptions | Feb. 13, 2015USD ($)FacilityRenewalOptions | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($)Property | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015EUR (€) | Dec. 31, 2014EUR (€) |
Business Acquisition [Line Items] | ||||||||||||||
Acquisition related costs | $ 2,677 | $ 24,949 | $ 6,379 | $ 56,997 | ||||||||||
2015 [Member] | Ernest [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition costs | $ 31,500 | |||||||||||||
Term of lease, years | 20 years | |||||||||||||
Loans provided for acquisition | $ 12,000 | |||||||||||||
Number of properties acquired | Property | 2 | |||||||||||||
Number of lease extension options | RenewalOptions | 3 | |||||||||||||
Term of lease extension, years | 5 years | |||||||||||||
2015 [Member] | Lake Huron Medical Center [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition costs | $ 20,000 | |||||||||||||
Mortgage financing | $ 30,000 | |||||||||||||
Mortgage financing term | 5 years | |||||||||||||
2015 [Member] | Rehabilitation Hospital with Covenant Health System [Member] | Ernest [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of beds acquired | Bed | 60 | |||||||||||||
2015 [Member] | Acute Care Hospital [Member] | Kansas [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Term of lease, years | 10 years | |||||||||||||
Mortgage financing | $ 40,000 | |||||||||||||
Mortgage financing term | 10 years | |||||||||||||
Number of lease extension options | RenewalOptions | 2 | |||||||||||||
Term of lease extension, years | 5 years | |||||||||||||
Number of facilities acquired | Facility | 2 | |||||||||||||
Purchase price of acquisition | $ 110,000 | |||||||||||||
2015 [Member] | Acute Care Hospital [Member] | Ernest [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of beds acquired | Bed | 37 | |||||||||||||
2015 [Member] | Inpatient Rehabilitation Hospital [Member] | Ernest [Member] | Weslaco Texas [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition costs | $ 10,700 | |||||||||||||
Term of lease, years | 20 years | |||||||||||||
Number of lease extension options | RenewalOptions | 3 | |||||||||||||
Term of lease extension, years | 5 years | |||||||||||||
Payments to fund long-term loans to related parties | $ 5,000 | |||||||||||||
2015 [Member] | General Acute Care Hospital and Healthcare System [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Mortgage financing | $ 100,000 | |||||||||||||
Number of licensed hospitals | Hospital | 3 | |||||||||||||
Number of free-standing emergency department and health center | Hospital | 1 | |||||||||||||
Mortgage financing term | 5 years | |||||||||||||
Mortgage financing funded | $ 85,000 | $ 15,000 | ||||||||||||
2015 [Member] | General Acute Care Hospital [Member] | Lake Huron Medical Center [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of beds acquired | Bed | 144 | |||||||||||||
2015 [Member] | Median [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of properties closed | Property | 30 | |||||||||||||
Number of hospitals acquired | Hospital | 32 | |||||||||||||
Acquisition costs | € | € 688 | |||||||||||||
Term of lease, years | 27 years | |||||||||||||
Lease rent increase percentage | 70.00% | |||||||||||||
Lease rate | 9.30% | |||||||||||||
Ownership percentage | 5.10% | |||||||||||||
Loans provided for acquisition | € | € 240 | € 425 | ||||||||||||
Value of properties closed | € | € 627 | |||||||||||||
2015 [Member] | Waterland Private Equity Fund [Member] | Median [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage | 94.90% | |||||||||||||
2015 [Member] | Capella [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Combined purchase price and investment amount | $ 900,000 | |||||||||||||
Number of properties closed | Property | 6 | |||||||||||||
Ownership interest in joint venture under the equity method | 49.00% | |||||||||||||
Ownership interests owned by management | 51.00% | |||||||||||||
2015 [Member] | Capella [Member] | Acute Care Hospital [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of portfolio investments | Investment | 7 | |||||||||||||
Number of investment in form of mortgage loan | Investment | 2 | |||||||||||||
2015 [Member] | Capella [Member] | Joint Venture Partner [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Fixed interest rate | 8.00% | |||||||||||||
2015 [Member] | Business Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenue contributed by the acquired entity | 30,000 | 59,200 | ||||||||||||
Income contributed by the acquired entity | 13,900 | 34,300 | ||||||||||||
Acquisition related costs | $ 23,700 | $ 52,900 |
Real Estate and Lending Activ27
Real Estate and Lending Activities - Schedule of Unaudited Supplemental Pro Forma Operating Data (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Total revenues | $ 162,400 | $ 156,500 | $ 479,800 | $ 480,100 |
Net income | $ 73,300 | $ 63,000 | $ 206,300 | $ 227,000 |
Net income per share/unit - diluted | $ 0.23 | $ 0.20 | $ 0.64 | $ 0.71 |
Real Estate and Lending Activ28
Real Estate and Lending Activities - Development Activities - Additional Information (Detail) € in Millions | Sep. 09, 2015EUR (€) | Sep. 30, 2016Facility |
2015 [Member] | AXA Real Estate [Member] | ||
Business Acquisition [Line Items] | ||
Ownership interest in joint venture under the equity method | 50.00% | |
Acute Care Facilities in Altoona [Member] | Development Activities [Member] | ||
Business Acquisition [Line Items] | ||
Number of facilities constructed | Facility | 13 | |
Acute Care Hospital [Member] | 2015 [Member] | Spain [Member] | AXA Real Estate [Member] | ||
Business Acquisition [Line Items] | ||
Estimated total development cost | € | € 21.4 |
Real Estate and Lending Activ29
Real Estate and Lending Activities - Summary of Status Update on Current Development Projects (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |
Commitment | $ 201,184 |
Costs Incurred as of 09/30/16 | 54,154 |
Adeptus Health Two [Member] | |
Business Acquisition [Line Items] | |
Commitment | 32,684 |
Costs Incurred as of 09/30/16 | $ 18,472 |
Estimated Completion Date | 4Q 2016 |
Adeptus Health Three [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 11,578 |
Costs Incurred as of 09/30/16 | $ 2,860 |
Estimated Completion Date | 1Q 2017 |
Adeptus Health Four [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 69,801 |
Costs Incurred as of 09/30/16 | $ 29,616 |
Estimated Completion Date | 2Q 2017 |
Ernest [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 28,067 |
Costs Incurred as of 09/30/16 | $ 3,206 |
Estimated Completion Date | 3Q 2017 |
Adeptus Health Five [Member] | |
Business Acquisition [Line Items] | |
Commitment | $ 59,054 |
Estimated Completion Date | Various |
Real Estate and Lending Activ30
Real Estate and Lending Activities - Disposals - Additional Information (Detail) $ in Thousands | Jul. 20, 2016USD ($)Hospital | Jun. 17, 2016USD ($) | May 23, 2016USD ($)Property | Apr. 30, 2016USD ($) | Aug. 05, 2015USD ($) | Jul. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016Hospital | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||
Proceeds from sale of real estate | $ 198,767 | $ 19,175 | |||||||||
Texas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on sale of real estate | $ 1,500 | ||||||||||
Proceeds from sale of real estate | 9,700 | ||||||||||
Straight line rent receivables write-off | $ 900 | ||||||||||
United States [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on sale of real estate | $ 1,700 | ||||||||||
Number of hospitals sold | 6 | ||||||||||
Proceeds from sale of real estate | $ 9,500 | ||||||||||
Consideration received as note receivable | 1,500 | ||||||||||
Billed rent receivables write-off | $ 900 | ||||||||||
Amortization of the related lease intangible asset | $ 700 | ||||||||||
Post Acute [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of properties sold | Property | 5 | ||||||||||
Outstanding loans paid in full | $ 4,000 | ||||||||||
Proceeds from sale of facilities | $ 28,000 | 71,000 | |||||||||
Gain on real estate dispositions | $ 15,000 | ||||||||||
Gain (loss) on sale of real estate | 8,000 | ||||||||||
Post Acute [Member] | Texas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of properties sold | Property | 3 | ||||||||||
Gain offset by non-cash charges | $ 9,000 | ||||||||||
Post Acute [Member] | Louisiana [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of properties sold | Property | 2 | ||||||||||
Capella [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net proceeds from transaction | $ 550,000 | ||||||||||
Net proceeds from equity investment and loans | 492,000 | ||||||||||
Proceeds from prepayment of mortgage loans | 210,000 | ||||||||||
New loan for hospital property | 93,300 | ||||||||||
Investment on unsecured senior notes | 50,000 | ||||||||||
Transaction costs incurred | $ 6,300 | ||||||||||
Number of hospital owned | Hospital | 5 | ||||||||||
Write off of unbilled direct finance lease rent | $ 2,600 | ||||||||||
HealthSouth [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from sale of facilities | $ 111,500 | ||||||||||
Gain on real estate dispositions | $ 45,000 | ||||||||||
HealthSouth [Member] | Texas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of hospitals sold | Hospital | 3 |
Real Estate and Lending Activ31
Real Estate and Lending Activities - Summary of Operations for Disposed Assets in 2016 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Revenues | $ 244 | $ 4,523 | $ 7,851 | $ 13,598 |
Real estate depreciation and amortization | (949) | (1,754) | (2,846) | |
Property-related expenses | (10) | (114) | (82) | |
Other income (expense) | (24) | 521 | (92) | 1,078 |
Income from real estate dispositions, net | $ 220 | $ 4,085 | $ 5,891 | $ 11,748 |
Real Estate and Lending Activ32
Real Estate and Lending Activities - Leasing Operations - Additional Information (Detail) - Leasing Operations [Member] | 9 Months Ended |
Sep. 30, 2016Leases | |
Ernest [Member] | |
Business Acquisition [Line Items] | |
Number of direct financing leases | 15 |
Prime Facilities [Member] | |
Business Acquisition [Line Items] | |
Number of direct financing leases | 6 |
Real Estate and Lending Activ33
Real Estate and Lending Activities - Components of Net Investment in Direct Financing Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Combinations [Abstract] | ||
Minimum lease payments receivable | $ 1,884,144 | $ 2,587,912 |
Estimated residual values | 292,647 | 393,097 |
Less: Unearned income | (1,643,300) | (2,354,013) |
Net investment in direct financing leases | $ 533,491 | $ 626,996 |
Real Estate and Lending Activ34
Real Estate and Lending Activities - Twelve Oaks Facility - Additional Information (Detail) - Twelve Oaks Facility [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||
Outstanding amount receivable from tenant past due including interest | $ 2.5 | |
Gain offset by non-cash charges | $ 1.9 | |
Amortization of leased intangible assets | $ 0.5 |
Real Estate and Lending Activ35
Real Estate and Lending Activities - Summary of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans [Line Items] | ||
Loans, Balance | $ 715,902 | $ 1,422,403 |
Mortgage Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 550,118 | 757,581 |
Acquisition Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | 122,161 | 610,469 |
Working Capital and Other Loans [Member] | ||
Loans [Line Items] | ||
Loans, Balance | $ 43,623 | $ 54,353 |
Real Estate and Loans Receivabl
Real Estate and Loans Receivable - Loans - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2012 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||
Amount of convertible note converted into equity interest | $ 1.7 | |
Convertible note | $ 5 | |
Percentage of equity shares from convertible debt | 9.90% | 15.10% |
Remaining convertible debt after conversion of part of debt | $ 3.3 | |
Ernest Transaction and Other Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Existing mortgage loans | $ 93.2 |
Real Estate and Lending Activ37
Real Estate and Lending Activities - Schedule of Revenue by Operator (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 126,555 | $ 114,570 | $ 387,854 | $ 310,333 |
Revenue [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 387,854 | $ 310,333 | ||
Percentage of Total Revenue | 100.00% | 100.00% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Prime [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 89,389 | $ 75,982 | ||
Percentage of Total Revenue | 23.10% | 24.50% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Median [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 70,242 | $ 56,609 | ||
Percentage of Total Revenue | 18.10% | 18.20% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Ernest [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 50,564 | $ 45,874 | ||
Percentage of Total Revenue | 13.00% | 14.80% | ||
Revenue [Member] | Credit Concentration Risk [Member] | RCCH [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 42,776 | $ 7,155 | ||
Percentage of Total Revenue | 11.00% | 2.30% | ||
Revenue [Member] | Credit Concentration Risk [Member] | Adeptus Health [Member] | ||||
Investment And Revenue From External Customers [Line Items] | ||||
Total Revenue | $ 25,873 | $ 12,982 | ||
Percentage of Total Revenue | 6.70% | 4.20% |
Real Estate and Lending Activ38
Real Estate and Lending Activities - Schedule of Revenue from External Customers by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 126,555 | $ 114,570 | $ 387,854 | $ 310,333 |
Revenue [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 387,854 | $ 310,333 | ||
Percentage of Total Revenue | 100.00% | 100.00% | ||
Revenue [Member] | Texas [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 72,811 | $ 63,815 | ||
Percentage of Total Revenue | 18.80% | 20.60% | ||
Revenue [Member] | California [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 49,724 | $ 49,595 | ||
Percentage of Total Revenue | 12.80% | 16.00% | ||
Revenue [Member] | All Other States [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 189,365 | $ 137,006 | ||
Percentage of Total Revenue | 48.80% | 44.10% | ||
Revenue [Member] | United States [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 311,900 | $ 250,416 | ||
Percentage of Total Revenue | 80.40% | 80.70% | ||
Revenue [Member] | Germany [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 72,718 | $ 56,609 | ||
Percentage of Total Revenue | 18.80% | 18.20% | ||
Revenue [Member] | United Kingdom, Italy, and Spain [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 3,236 | $ 3,308 | ||
Percentage of Total Revenue | 0.80% | 1.10% | ||
Revenue [Member] | International [Member] | Credit Concentration Risk [Member] | ||||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||||
Total Revenue | $ 75,954 | $ 59,917 | ||
Percentage of Total Revenue | 19.60% | 19.30% |
Real Estate and Lending Activ39
Real Estate and Lending Activities - Schedule of Gross Assets by Operator (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 6,095,337 | $ 5,609,351 |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 7,217,777 | $ 6,035,922 |
Percentage of Total Gross Assets | 100.00% | 100.00% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Steward [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 1,250,000 | |
Percentage of Total Gross Assets | 17.30% | |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Prime [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 1,142,760 | $ 1,032,353 |
Percentage of Total Gross Assets | 15.90% | 17.10% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Median [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 1,054,568 | $ 1,031,039 |
Percentage of Total Gross Assets | 14.60% | 17.10% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | Ernest [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 622,416 | $ 579,182 |
Percentage of Total Gross Assets | 8.60% | 9.60% |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | RCCH [Member] | ||
Investment And Revenue From External Customers [Line Items] | ||
Total Gross Assets | $ 564,509 | $ 1,059,989 |
Percentage of Total Gross Assets | 7.80% | 17.60% |
Real Estate and Lending Activ40
Real Estate and Lending Activities - Schedule of Gross Assets by Geographic Areas (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 6,095,337 | $ 5,609,351 |
Total Gross Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 7,217,777 | $ 6,035,922 |
Percentage of Total Gross Assets | 100.00% | 100.00% |
Total Gross Assets [Member] | Massachusetts [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,250,000 | |
Percentage of Total Gross Assets | 17.30% | |
Total Gross Assets [Member] | Texas [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 944,028 | $ 1,060,990 |
Percentage of Total Gross Assets | 13.10% | 17.60% |
Total Gross Assets [Member] | California [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 542,892 | $ 547,085 |
Percentage of Total Gross Assets | 7.50% | 9.10% |
Total Gross Assets [Member] | All Other States [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 2,669,401 | $ 3,047,204 |
Percentage of Total Gross Assets | 37.00% | 50.50% |
Total Gross Assets [Member] | Other Domestic Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 251,587 | $ 177,317 |
Percentage of Total Gross Assets | 3.50% | 2.90% |
Total Gross Assets [Member] | United States [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 5,657,908 | $ 4,832,596 |
Percentage of Total Gross Assets | 78.40% | 80.10% |
Total Gross Assets [Member] | Germany [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,376,626 | $ 1,031,039 |
Percentage of Total Gross Assets | 19.10% | 17.10% |
Total Gross Assets [Member] | United Kingdom, Italy, and Spain [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 156,226 | $ 161,317 |
Percentage of Total Gross Assets | 2.10% | 2.70% |
Total Gross Assets [Member] | Other International Assets [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 27,017 | $ 10,970 |
Percentage of Total Gross Assets | 0.40% | 0.10% |
Total Gross Assets [Member] | International [Member] | Credit Concentration Risk [Member] | ||
Investment And Revenue From External Customers By Geographic Area [Line Items] | ||
Total Gross Assets | $ 1,559,869 | $ 1,203,326 |
Percentage of Total Gross Assets | 21.60% | 19.90% |
Real Estate and Lending Activ41
Real Estate and Lending Activities - Concentrations of Credit Risk - Additional Information (Detail) - Total Gross Assets [Member] - Customer Concentration Risk [Member] | Sep. 30, 2016Investment |
Business Acquisition [Line Items] | |
Number of investment in property | 0 |
Maximum percentage of entity's gross assets invested on single property | 3.30% |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Principal amount | $ 2,759,629 | |
Debt issue costs, net | (32,982) | $ (28,367) |
Debt | $ 2,728,549 | $ 3,322,541 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | Variable | Variable |
Debt | $ 1,100,000 | |
2006 Senior Unsecured Notes Due 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | Various | |
Senior unsecured notes, interest rate | 5.675% | |
Debt | $ 60,000 | $ 125,000 |
2011 Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 6.875% | |
Debt | $ 450,000 | |
2012 Senior Unsecured Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 350,000 | $ 350,000 |
Senior unsecured notes, interest rate | 6.375% | 6.375% |
Unamortized premium | $ 1,902 | $ 2,168 |
Debt | $ 351,902 | $ 352,168 |
2013 Senior Unsecured Notes due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 5.75% | 5.75% |
Debt | $ 224,700 | $ 217,240 |
2014 Senior Unsecured Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 5.50% | 5.50% |
Debt | $ 300,000 | $ 300,000 |
2015 Senior Unsecured Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 4.00% | 4.00% |
Debt | $ 561,750 | $ 543,100 |
2016 Senior Unsecured Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 6.375% | |
Debt | $ 500,000 | |
2016 Senior Unsecured Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes, interest rate | 5.25% | |
Debt | $ 500,000 | |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | Various | Various |
Debt | $ 263,179 | $ 263,400 |
Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 2,761,531 | $ 3,350,908 |
Debt - Principal Payments Due f
Debt - Principal Payments Due for Debt (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 60,078 |
2,017 | 320 |
2,018 | 12,781 |
2,019 | 250,000 |
2,020 | 224,700 |
Thereafter | 2,211,750 |
Total | $ 2,759,629 |
Debt - Principal Payments Due44
Debt - Principal Payments Due for Debt (Parenthetical) (Detail) $ in Millions | Oct. 31, 2016USD ($) |
2006 Senior Unsecured Notes [Member] | Subsequent Event [Member] | |
Debt Instrument [Line Items] | |
Unsecured debt, current | $ 60 |
Debt - 2016 Activity - Addition
Debt - 2016 Activity - Additional Information (Detail) - USD ($) | Jul. 22, 2016 | Feb. 22, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
2026 Senior Unsecured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes face amount | $ 500,000,000 | ||||
Senior unsecured notes, payable term | Interest on the notes will be payable on February 1 and August 1 of each year | ||||
Senior unsecured notes commencing date of payment | Feb. 1, 2017 | ||||
Senior unsecured notes, interest rate | 5.25% | ||||
Senior unsecured notes, maturity date | Aug. 1, 2026 | ||||
Senior notes, earliest redemption date | Aug. 1, 2021 | ||||
Senior unsecured notes, redemption description | We may redeem some or all of the notes at any time prior to August 1, 2021 at a “make whole” redemption price. On or after August 1, 2021, we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to August 1, 2019, we may redeem up to 35% of the notes at a redemption price equal to 105.25% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. | ||||
Debt instrument, redemption price percentage | 105.25% | ||||
Senior notes, repurchased price percentage on principal amount plus accrued and unpaid interest | 101.00% | ||||
2026 Senior Unsecured Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, redemption percentage on principal amount | 35.00% | ||||
2011 Senior Unsecured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 6.875% | ||||
Notes redeemed | $ 450,000,000 | ||||
Debt refinancing charge | 22,500,000 | ||||
Redemption premium | $ 15,500,000 | ||||
Revolving Credit Facility [Member] | 2016 Senior Unsecured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes face amount | $ 500,000,000 | ||||
Senior unsecured notes, payable term | Interest on the notes is payable on March 1 and September 1 of each year | ||||
Senior unsecured notes commencing date of payment | Sep. 1, 2016 | ||||
Senior unsecured notes, interest rate | 6.375% | ||||
Senior unsecured notes, maturity date | Mar. 1, 2024 | ||||
Senior notes, earliest redemption date | Mar. 1, 2019 | ||||
Senior unsecured notes, redemption description | we may redeem some or all of the notes at a premium that will decrease over time. In addition, at any time prior to March 1, 2019, we may redeem up to 35% of the notes at a redemption price equal to 106.375% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, using proceeds from one or more equity offerings. In the event of a change in control, each holder of the notes may require us to repurchase some or all of the notes at a repurchase price equal to 101% of the aggregate principal amount of the notes plus accrued and unpaid interest to the date of purchase. | ||||
Debt instrument, redemption price percentage | 106.375% | ||||
Senior notes, repurchased price percentage on principal amount plus accrued and unpaid interest | 101.00% | ||||
Revolving Credit Facility [Member] | 2016 Senior Unsecured Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, redemption percentage on principal amount | 35.00% |
Debt - 2015 Activity - Addition
Debt - 2015 Activity - Additional Information (Detail) | 3 Months Ended | ||
Sep. 30, 2015USD ($) | Aug. 19, 2015EUR (€) | Jul. 27, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Aggregate committed amount of credit facility | $ 1,950,000,000 | ||
Credit facility, amendment fees incurred | 100,000 | ||
2015 Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes face amount | € | € 500,000,000 | ||
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate committed amount of credit facility | 250,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate committed amount of credit facility | 1,300,000,000 | ||
Accordion to credit facility | 400,000,000 | ||
Capella [Member] | |||
Debt Instrument [Line Items] | |||
Underwriting fees | $ 3,900,000 | ||
Bridge Loan [Member] | Capella [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate committed amount of credit facility | $ 1,000,000,000 |
Debt - Other - Additional Infor
Debt - Other - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jul. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2011 | |
Interest Rate Swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Hedge ineffectiveness and income statement effect in period | $ 0 | $ 0 | $ 0 | $ 0 | |||
Other assets, collateral | 400,000 | 400,000 | $ 1,700,000 | ||||
Interest Rate Swap [Member] | 2006 Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured debt, current | $ 65,000,000 | $ 60,000,000 | |||||
Interest Rate Contract [Member] | 2006 Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of the interest rate swaps | $ 400,000 | $ 400,000 | $ 2,900,000 | ||||
Interest Rate Contract Two [Member] | 2006 Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date of interest rate swap | 2016-10 | ||||||
Fixed interest rate | 5.675% |
Debt - Covenants - Additional I
Debt - Covenants - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Percentage of dividends which could be paid from adjusted operating funds | 95.00% |
Percentage of dividends which could be paid from operation funds | 95.00% |
Maximum percentage of total unencumbered assets | 150.00% |
Common Stock_Partners' Capital
Common Stock/Partners' Capital - Additional Information (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 07, 2016USD ($)$ / sharesshares | Mar. 01, 2016USD ($) | Aug. 11, 2015USD ($)shares | Jan. 14, 2015USD ($)shares | Sep. 30, 2016USD ($)PartnerDirectorEmployeeshares | Sep. 30, 2015USD ($)shares | Dec. 31, 2015shares |
Class of Stock [Line Items] | |||||||
Proceeds from sale of common shares / units, net of offering costs | $ 1,024,088 | $ 817,533 | |||||
Common stock, shares issued | shares | 309,792 | 236,744 | |||||
Common Units [Member] | Private Placement [Member] | Subsequent Event [Member] | Cerberus Capital Management [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of share sold | shares | 10,300 | ||||||
Sale of Stock, price per share | $ / shares | $ 14.50 | ||||||
Proceeds from sale of common shares / units, net of offering costs | $ 150,000 | ||||||
MPT Operating Partnership, L.P. [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from sale of common shares / units, net of offering costs | $ 1,024,088 | $ 817,533 | |||||
Ownership interest in equity | 99.87% | ||||||
Number of other partners | Partner | 3 | ||||||
Number of units sold | shares | 72,500 | 63,250 | |||||
Employee [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of partners shared remaining ownership percentage | Employee | 2 | ||||||
Director [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of partners shared remaining ownership percentage | Director | 1 | ||||||
Market Equity Offering Program [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from sale of common shares / units, net of offering costs | $ 224,000 | ||||||
Common stock, shares issued | shares | 15,000 | ||||||
Sales commission percentage | 1.25% | ||||||
Sales commissions, amount | $ 2,800 | ||||||
Market Equity Offering Program [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Value of stock | $ 227,000 | ||||||
Public Offering [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from sale of common shares / units, net of offering costs | $ 337,000 | $ 480,000 | $ 799,500 | ||||
Common stock, shares issued | shares | 28,750 | 34,500 | 57,500 | ||||
Additional shares purchased by underwriters | shares | 3,750 | 4,500 | 7,500 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Detail) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Time-Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, multi-year performance-based awards | 254,574 | 407,969 |
Stock awards vesting period in years | 3 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, multi-year performance-based awards | 0 | 366,838 |
Stock awards vesting period in years | 3 years | |
Multi-year performance-based awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, multi-year performance-based awards | 799,804 | 505,050 |
Stock awards vesting period in years | 3 years | |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reserved shares of common stock for awards under the Equity Incentive Plan | 8,196,770 | |
Common stock remaining for future stock awards transferred to the equity incentive plan | 4,763,066 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments - Summary of Fair Value Information of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Interest and rent receivables, Book value | $ 54,554 | $ 46,939 |
Loans, Book value | 496,767 | 508,851 |
Debt, net Book value | (2,728,549) | (3,322,541) |
Interest and rent receivables, Fair value | 54,522 | 46,858 |
Loans, Fair value | 529,053 | 543,859 |
Debt, net Fair value | $ (2,875,619) | $ (3,372,773) |
Fair Value of Financial Instr52
Fair Value of Financial Instruments - Equity Interest in Related Party and Related Loans Measured at Fair Value on Recurring Basis (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | $ 222,435 |
Cost | 222,435 |
Fair Value Measurements, Recurring [Member] | Equity investments [Member] | Other Assets [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 3,300 |
Cost | 3,300 |
Fair Value Measurements, Recurring [Member] | Acquisition and Other Loans [Member] | Other Loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 116,585 |
Cost | 116,585 |
Fair Value Measurements, Recurring [Member] | Mortgage Loans [Member] | Mortgage Loans [Member] | |
Financial Instruments Measured At Fair Value On Recurring Basis [Line Items] | |
Fair Value | 102,550 |
Cost | $ 102,550 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Additional information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Adjustment for marketability discount | 40.00% |
Fair Value of Financial Instr54
Fair Value of Financial Instruments - Summary Showing Sensitivity Analysis by Using Basis Point Variations (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
+100 basis points [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated Increase (Decrease) In Fair Value of Financial Instruments | $ (61) |
- 100 basis points [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated Increase (Decrease) In Fair Value of Financial Instruments | $ 61 |
Earnings Per Share_Common Uni55
Earnings Per Share/Common Unit - Calculation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income from continuing operations | $ 70,543 | $ 23,123 | $ 182,693 | $ 81,589 |
Non-controlling interests' share in continuing operations | (185) | (66) | (683) | (228) |
Participating securities' share in earnings | (154) | (265) | (430) | (781) |
Income from continuing operations, less participating securities' share in earnings | 70,204 | 22,792 | 181,580 | 80,580 |
Income (loss) from discontinued operations attributable to MPT Operating Partnership partners | (1) | |||
Net income, less participating securities' share in earnings | $ 70,204 | $ 22,792 | $ 181,579 | $ 80,580 |
Basic weighted-average common shares | 246,230 | 223,948 | 240,607 | 211,659 |
Dilutive potential common shares | 1,238 | 825 | 409 | |
Dilutive weighted-average common shares | 247,468 | 223,948 | 241,432 | 212,068 |
MPT Operating Partnership, L.P. [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income from continuing operations | $ 70,543 | $ 23,123 | $ 182,693 | $ 81,589 |
Non-controlling interests' share in continuing operations | (185) | (66) | (683) | (228) |
Participating securities' share in earnings | (154) | (265) | (430) | (781) |
Income from continuing operations, less participating securities' share in earnings | 70,204 | 22,792 | 181,580 | 80,580 |
Income (loss) from discontinued operations attributable to MPT Operating Partnership partners | (1) | |||
Net income, less participating securities' share in earnings | $ 70,204 | $ 22,792 | $ 181,579 | $ 80,580 |
Basic weighted-average common shares | 246,230 | 223,948 | 240,607 | 211,659 |
Dilutive potential common shares | 1,238 | 825 | 409 | |
Dilutive weighted-average common shares | 247,468 | 223,948 | 241,432 | 212,068 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions | Oct. 01, 2016EUR (€)Facility | Sep. 28, 2016USD ($)Hospital | Sep. 09, 2016EUR (€)Hospital | Jul. 20, 2016EUR (€)Hospital |
Washington and Idaho [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Number of rehabilitation hospitals | Hospital | 2 | |||
Purchase price of acquisition | $ | $ 105 | |||
Germany [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Number of rehabilitation hospitals | Hospital | 6 | 23 | ||
Purchase price of acquisition | € | € 46.3 | € 215.7 | ||
Germany [Member] | Subsequent Event [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Number of facilities closed | Facility | 3 | |||
Consideration received on closing of facilities | € | € 22.9 |