Document And Entity Information
Document And Entity Information - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | May 09, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Carter Validus Mission Critical REIT II, Inc. | |
Entity Central Index Key | 1,567,925 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Class A shares [Member] | ||
Entity Common Stock, Shares Outstanding | 74,877 | |
Class I shares [Member] | ||
Entity Common Stock, Shares Outstanding | 532 | |
Class T shares [Member] | ||
Entity Common Stock, Shares Outstanding | 18,676 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Real estate: | ||
Land | $ 171,729 | $ 154,385 |
Buildings and improvements, less accumulated depreciation of $23,781 and $18,521, respectively | 842,469 | 722,492 |
Construction in progress | 26,671 | 20,123 |
Total real estate, net | 1,040,869 | 897,000 |
Cash and cash equivalents | 64,414 | 50,446 |
Acquired intangible assets, less accumulated amortization of $10,353 and $7,995, respectively | 110,885 | 98,053 |
Other assets, net | 31,411 | 24,539 |
Total assets | 1,247,579 | 1,070,038 |
Liabilities: | ||
Notes payable, net of deferred financing costs of $2,196 and $1,945, respectively | 175,794 | 151,045 |
Credit facility, net of deferred financing costs of $803 and $876, respectively | 309,197 | 219,124 |
Accounts payable due to affiliates | 8,672 | 7,384 |
Accounts payable and other liabilities | 19,981 | 17,184 |
Intangible lease liabilities, less accumulated amortization of $768 and $634, respectively | 6,739 | 6,873 |
Total liabilities | 520,383 | 401,610 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value per share, 500,000,000 shares authorized; 91,032,935 and 83,109,025 shares issued, respectively; 90,427,297 and 82,744,288 shares outstanding, respectively | 904 | 827 |
Additional paid-in capital | 790,371 | 723,859 |
Accumulated distributions in excess of earnings | (65,689) | (57,100) |
Accumulated other comprehensive income | 1,608 | 840 |
Total stockholders’ equity | 727,194 | 668,426 |
Noncontrolling interests | 2 | 2 |
Total equity | 727,196 | 668,428 |
Total liabilities and stockholders’ equity | $ 1,247,579 | $ 1,070,038 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Buildings and improvements, accumulated depreciation | $ 23,781 | $ 18,521 |
Acquired intangible assets, accumulated amortization | 10,353 | 7,995 |
Notes payable, deferred financing costs | 2,196 | 1,945 |
Credit facility, deferred financing costs | 803 | 876 |
Intangible lease liabilities, accumulated amortization | $ 768 | $ 634 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 91,032,935 | 83,109,025 |
Common stock, shares outstanding | 90,427,297 | 82,744,288 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Rental revenue | $ 19,682 | $ 10,021 |
Tenant reimbursement revenue | 4,340 | 1,403 |
Total revenue | 24,022 | 11,424 |
Expenses: | ||
Rental expenses | 4,926 | 1,684 |
General and administrative expenses | 925 | 765 |
Acquisition related expenses | 0 | 1,665 |
Asset management fees | 2,006 | 955 |
Depreciation and amortization | 7,610 | 3,866 |
Total expenses | 15,467 | 8,935 |
Income from operations | 8,555 | 2,489 |
Interest expense, net | 3,764 | 879 |
Net income attributable to common stockholders | 4,791 | 1,610 |
Other comprehensive income: | ||
Unrealized income on interest rate swaps, net | 768 | 0 |
Other comprehensive income attributable to common stockholders | 768 | 0 |
Comprehensive income attributable to common stockholders | $ 5,559 | $ 1,610 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 86,482,927 | 53,666,785 |
Diluted (in shares) | 86,499,543 | 53,679,723 |
Net income per common share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0.06 | $ 0.03 |
Diluted (in dollars per share) | 0.06 | 0.03 |
Distributions declared per common share | $ 0.16 | $ 0.16 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Distributions in Excess of Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
Balance, (in shares) at Dec. 31, 2016 | 82,744,288 | 82,744,288 | |||||
Balance, at Dec. 31, 2016 | $ 668,428 | $ 827 | $ 723,859 | $ (57,100) | $ 840 | $ 668,426 | $ 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 7,164,054 | ||||||
Issuance of common stock | 69,923 | $ 72 | 69,851 | 69,923 | 0 | ||
Issuance of common stock under the distribution reinvestment plan (in shares) | 759,857 | ||||||
Issuance of common stock under the distribution reinvestment plan | 7,001 | $ 7 | 6,994 | 7,001 | 0 | ||
Vesting of restricted common stock (in shares) | 0 | ||||||
Vesting of restricted common stock | 17 | $ 0 | 17 | 17 | 0 | ||
Commissions on sale of common stock and related dealer manager fees | (4,945) | (4,945) | (4,945) | 0 | |||
Distribution and servicing fees | (1,649) | (1,649) | (1,649) | 0 | |||
Other offering costs | (1,573) | (1,573) | (1,573) | 0 | |||
Repurchase of common stock (in shares) | (240,902) | ||||||
Repurchase of common stock | (2,185) | $ (2) | (2,183) | (2,185) | 0 | ||
Distributions declared to common stockholders | (13,380) | (13,380) | (13,380) | 0 | |||
Other comprehensive income | 768 | 768 | 768 | 0 | |||
Net income | $ 4,791 | 4,791 | 4,791 | 0 | |||
Balance, (in shares) at Mar. 31, 2017 | 90,427,297 | 90,427,297 | |||||
Balance, at Mar. 31, 2017 | $ 727,196 | $ 904 | $ 790,371 | $ (65,689) | $ 1,608 | $ 727,194 | $ 2 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 4,791 | $ 1,610 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,610 | 3,866 |
Amortization of deferred financing costs | 561 | 202 |
Amortization of above-market leases | 9 | 9 |
Amortization of intangible lease liabilities | (134) | (134) |
Straight-line rent | (2,232) | (1,166) |
Stock-based compensation | 17 | 11 |
Ineffectiveness of interest rate swaps | 8 | 0 |
Changes in operating assets and liabilities: | ||
Accounts payable and other liabilities | 2,970 | 891 |
Accounts payable due to affiliates | 199 | 97 |
Other assets | (1,028) | (755) |
Net cash provided by operating activities | 12,771 | 4,631 |
Cash flows from investing activities: | ||
Investment in real estate | (156,875) | (85,403) |
Acquisition costs capitalized subsequent | (44) | 0 |
Capital expenditures | (8,108) | (247) |
Escrow funds, net | 193 | 230 |
Real estate deposits, net | (3,330) | (400) |
Net cash used in investing activities | (168,164) | (85,820) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 69,923 | 93,868 |
Proceeds from notes payable | 25,000 | 0 |
Proceeds from credit facility | 120,000 | 20,000 |
Payments on credit facility | (30,000) | 0 |
Payments of deferred financing costs | (526) | (206) |
Repurchases of common stock | (2,185) | (338) |
Offering costs on issuance of common stock | (6,661) | (9,074) |
Distributions to stockholders | (5,977) | (3,359) |
Escrow funds, net | (213) | 0 |
Net cash provided by financing activities | 169,361 | 100,891 |
Net change in cash and cash equivalents | 13,968 | 19,702 |
Cash and cash equivalents - Beginning of period | 50,446 | 31,262 |
Cash and cash equivalents - End of period | 64,414 | 50,964 |
Supplemental cash flow disclosure: | ||
Interest paid, net of interest capitalized of $365 during 2017 | 3,225 | 595 |
Supplemental disclosure of non-cash transactions: | ||
Common stock issued through distribution reinvestment plan | 7,001 | 4,626 |
Distribution and servicing fees accrued during the period | 1,333 | 0 |
Liability assumed at acquisition | $ 815 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Statement of Cash Flows [Abstract] | |
Interest capitalized | $ 365 |
Organization and Business Opera
Organization and Business Operations | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Carter Validus Mission Critical REIT II, Inc., or the Company, is a Maryland corporation that was formed on January 11, 2013. The Company elected to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, for federal income tax purposes, on September 11, 2015. Substantially all of the Company’s business is conducted through Carter Validus Operating Partnership II, LP, a Delaware limited partnership, or the Operating Partnership, formed on January 10, 2013. The Company is the sole general partner of the Operating Partnership and Carter Validus Advisors II, LLC, or the Advisor, is the initial limited partner of the Operating Partnership. The Company is offering for sale a maximum of $2,350,000,000 in shares of common stock, consisting of up to $2,250,000,000 in shares in its primary offering and up to $100,000,000 in shares of common stock to be made available pursuant to the Company’s distribution reinvestment plan, or the DRIP, on a “best efforts” basis, or the Offering, pursuant to a registration statement on Form S-11, or the Registration Statement, filed with the Securities and Exchange Commission, or the SEC, under the Securities Act of 1933, as amended, or the Securities Act, which was declared effective on May 29, 2014. As of March 31, 2017 , we were offering Class A shares, Class I shares and Class T shares of common stock, in any combination with a dollar value up to the maximum offering amount. As of March 31, 2017 , the Company had issued approximately 91,026,000 shares of Class A, Class I and Class T common stock (including shares of common stock issued pursuant to the DRIP) in the Offering, resulting in receipt of gross proceeds of approximately $896,207,000 , before selling commissions and dealer manager fees of approximately $74,130,000 and other offering costs of approximately $17,450,000 . As of March 31, 2017 , the Company had approximately $1,453,793,000 in Class A shares, Class I shares and Class T shares of common stock remaining in the Offering. Substantially all of the Company’s business is managed by the Advisor. Carter Validus Real Estate Management Services II, LLC, or the Property Manager, an affiliate of the Advisor, serves as the Company’s property manager. The Advisor and the Property Manager have received, and will continue to receive, fees for services related to the acquisition and operational stages. The Advisor will also be eligible to receive fees during the liquidation stage. SC Distributors, LLC, an affiliate of the Advisor, or the Dealer Manager, serves as the dealer manager of the Offering. The Dealer Manager has received, and will continue to receive, fees for services related to the Offering. The Company was formed to invest primarily in quality income-producing commercial real estate, with a focus on data centers and healthcare properties, preferably with long-term net leases to creditworthy tenants, as well as to make other real estate-related investments that relate to such property types. Real estate-related investments may include equity or debt interests, including securities, in other real estate entities. The Company also may originate or invest in real estate-related notes receivable. The Company expects real estate-related notes receivable originations and investments to be focused on first mortgage loans, but also may include real estate-related bridge loans, mezzanine loans and securitized notes receivable. As of March 31, 2017 , the Company owned 41 real estate investments, consisting of 57 properties, located in 32 metropolitan statistical areas, or MSAs, and one micropolitan statistical area, or µSA. Except as the context otherwise requires, “we,” “our,” “us,” and the “Company” refer to Carter Validus Mission Critical REIT II, Inc., the Operating Partnership and all wholly-owned subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representation of management. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring nature considered for a fair presentation, have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date but does not include all the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2016 and related notes thereto set forth in the Company's Annual Report on Form 10-K, filed with the SEC on March 16, 2017. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Concentration of Credit Risk and Significant Leases As of March 31, 2017 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels; however, the Company has not experienced any losses in such accounts. The Company limits its cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss or lack of access to cash in its accounts. As of March 31, 2017 , the Company owned real estate investments in 32 MSAs, one of which accounted for 10.0% or more of contractual rental revenue. Real estate investments located in the Oklahoma City, Oklahoma MSA accounted for 12.9% of contractual rental revenue for the three months ended March 31, 2017 . Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a Qualifying Disability of a stockholder, are limited to those that can be funded with equivalent proceeds raised from the DRIP Offering during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors. The Company will limit the number of shares repurchased pursuant to the share repurchase program as follows: during any calendar year, the Company will not repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31 st of the previous calendar year. In addition, the Company’s board of directors, in its sole discretion, may amend, suspend, reduce, terminate or otherwise change the share repurchase program upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate. During the three months ended March 31, 2017 , the Company received valid repurchase requests related to 240,902 Class A shares of common stock, all of which were repurchased in full for an aggregate purchase price of approximately $2,185,000 (an average of $9.07 per share). During the three months ended March 31, 2016 , the Company received valid repurchase requests related to 35,970 Class A shares of common stock , all of which were repurchased in full for an aggregate purchase price of approximately $338,000 (an average of $9.40 per share). No shares of Class I common stock or Class T common stock were requested to be, or were, repurchased during the three months ended March 31, 2017 and 2016 . Earnings Per Share The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. For the three months ended March 31, 2017 and 2016 , diluted earnings per share reflected the effect of approximately 17,000 and 13,000 , respectively, of non-vested shares of restricted stock that were outstanding as of such period. Recently Issued Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle, which may require more judgment and estimates within the revenue recognition process than are required under existing GAAP. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date , or ASU 2015-14. ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers Principal versus Agent Considerations (Reporting Revenue Gross versus Net), or ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. ASU 2016-08 clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. The effective date and transition of this update is the same as the effective date and transition of ASU 2015-14. The Company believes the adoption of ASUs 2014-09 and 2016-08 will not have a material impact on the Company’s consolidated financial statements, but may result in additional disclosures. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2016-02 will have on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements. On November 17, 2016, the FASB issued ASU 2016-18, Restricted Cash , or ASU 2016-18. ASU 2016-18 requires that a statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. This ASU states that transfers between cash, cash equivalents, and restricted cash are not part of the entity’s operating, investing, and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. This ASU should be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the impact ASU 2016-18 will have on the Company’s consolidated statements of cash flows. On January 5, 2017, the FASB issued ASU 2017-01, Business Combinations , or ASU 2017-01. ASU 2017-01 clarifies the definition of a business. The objective of ASU 2017-01 is to add further guidance that assists entities in evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted using a prospective transition method. The Company adopted ASU 2017-01 effective October 1, 2016. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2017-05 will have on the Company’s condensed consolidated financial statements. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments During the three months ended March 31, 2017 , the Company purchased six real estate properties, all of which were determined to be asset acquisitions. Upon the acquisition of the real estate properties determined to be asset acquisitions, the Company allocates the purchase price of such properties to acquired tangible assets, consisting of land and buildings and improvements, and acquired intangible assets, based on a relative fair value method allocating all accumulated costs. The aggregate purchase price of the acquisitions was $157,690,000 , inclusive of a liability assumed at acquisition of $815,000 . The following table summarizes the acquisitions during the three months ended March 31, 2017 : Property Description Date Ownership Purchase Price (amounts in thousands) Tempe Data Center 01/26/2017 100% $ 16,224 Norwalk Data Center 03/30/2017 100% 58,885 Aurora Healthcare Facility 03/30/2017 100% 11,531 Texas Rehab - Austin 03/31/2017 100% 36,945 Texas Rehab - Allen 03/31/2017 100% 23,691 Texas Rehab - Beaumont 03/31/2017 100% 10,414 Total $ 157,690 The following table summarizes management's allocation of the acquisitions during the three months ended March 31, 2017 , based on a relative fair value method allocating all accumulated costs (amounts in thousands): Total Land $ 17,267 Buildings and improvements 125,977 In-place leases 14,446 Total assets acquired $ 157,690 Acquisition fees and expenses associated with transactions determined to be asset acquisitions are capitalized. The Company capitalized acquisition fees and costs of approximately $4,093,000 related to the current quarter acquisitions. The Company capitalized $1,387,000 for the three months ended March 31, 2016 . The total amount of all acquisition fees and costs is limited to 6.0% of the contract purchase price of a property. The contract purchase price is the amount actually paid or allocated in respect of the purchase, development, construction or improvement of a property exclusive of acquisition fees and costs. For the three months ended March 31, 2017 , acquisition fees and costs did not exceed 6.0% of the contract purchase price of the Company's acquisitions during such periods. |
Acquired Intangible Assets, Net
Acquired Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Acquired Intangible Assets, Net | Acquired Intangible Assets, Net Acquired intangible assets, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 In-place leases, net of accumulated amortization of $10,267 and $7,918, respectively (with a weighted average remaining life of 12.9 years and 12.8 years, respectively) $ 110,073 $ 97,232 Above-market leases, net of accumulated amortization of $65 and $58, respectively (with a weighted average remaining life of 7.2 years and 7.4 years, respectively) 189 196 Ground lease interest, net of accumulated amortization of $21 and $19, respectively (with a weighted average remaining life of 66.6 years and 66.8 years, respectively) 623 625 $ 110,885 $ 98,053 The aggregate weighted average remaining life of the acquired intangible assets was 13.2 years and 13.1 years as of March 31, 2017 and December 31, 2016 , respectively. Amortization of the acquired intangible assets for the three months ended March 31, 2017 and 2016 was $2,358,000 and $1,181,000 , respectively. Amortization of the above-market leases is recorded as an adjustment to rental revenue, amortization expense for the in-place leases is included in depreciation and amortization and amortization expense for the ground lease interest is included in rental expenses in the accompanying condensed consolidated statements of comprehensive income . |
Intangible Lease Liabilities, N
Intangible Lease Liabilities, Net | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Lease Liabilities, Net [Abstract] | |
Intangible Lease Liabilities, Net | Intangible Lease Liabilities, Net Intangible lease liabilities, net consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 Below-market leases, net of accumulated amortization of $768 and $634, respectively (with a weighted average remaining life of 13.3 years and 13.6 years, respectively) $ 6,739 $ 6,873 $ 6,739 $ 6,873 Amortization of below-market leases was $134,000 for the three months ended March 31, 2017 and 2016 . Amortization of below-market leases is recorded as an adjustment to rental revenue in the accompanying condensed consolidated statements of comprehensive income . |
Other Assets, Net
Other Assets, Net | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 December 31, 2016 Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $2,169 and $1,789, respectively $ 2,857 $ 3,071 Real estate escrow deposits 3,620 290 Restricted cash held in escrow 6,481 6,458 Tenant receivable 3,724 3,126 Straight-line rent receivable 10,957 8,725 Prepaid and other assets 1,514 1,087 Derivative assets 2,258 1,782 $ 31,411 $ 24,539 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Liabilities | Accounts Payable and Other Liabilities Accounts payable and other liabilities as of March 31, 2017 and December 31, 2016 , were comprised of the following (amounts in thousands): March 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 7,533 $ 7,657 Accrued interest expense 1,320 945 Accrued property taxes 1,657 1,164 Distributions payable to stockholders 4,737 4,336 Tenant deposits 1,380 1,551 Deferred rental income 2,840 733 Derivative liability 514 798 $ 19,981 $ 17,184 |
Notes Payable and Secured Credi
Notes Payable and Secured Credit Facility | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable and Secured Credit Facility | Notes Payable and Secured Credit Facility The Company's debt outstanding as of March 31, 2017 and December 31, 2016 consisted of the following (amounts in thousands): March 31, 2017 December 31, 2016 Notes payable: Fixed rate notes payable $ 76,000 $ 51,000 Variable rate notes payable fixed through interest rate swaps 101,990 71,540 Variable rate notes payable — (1) 30,450 Total notes payable, principal amount outstanding 177,990 152,990 Unamortized deferred financing costs related to notes payable (2,196 ) (1,945 ) Total notes payable, net of deferred financing costs 175,794 151,045 Secured credit facility: Revolving line of credit 210,000 120,000 Term loan 100,000 100,000 Total secured credit facility, principal amount outstanding 310,000 220,000 Unamortized deferred financing costs related to the term loan of the secured credit facility (803 ) (876 ) Total secured credit facility, net of deferred financing costs 309,197 219,124 Total debt outstanding $ 484,991 $ 370,169 (1) During the three months ended March 31, 2017 , the Company converted its $30,450,000 variable note payable into a variable rate note payable fixed through interest rate swap. Significant debt activity since December 31, 2016, excluding scheduled principal payments, includes: • During the three months ended March 31, 2017 , the Company drew $120,000,000 and repaid $30,000,000 on its secured credit facility. • During the three months ended March 31, 2017 , the Company increased the borrowing base availability under the secured credit facility by $54,363,000 by adding five properties to the aggregate pool availability. • As of March 31, 2017 , the Company had a total pool availability under the secured credit facility of $342,826,000 and an aggregate outstanding principal balance of $310,000,000 . As of March 31, 2017 , $32,826,000 remained to be drawn on the secured credit facility. • During the three months ended March 31, 2017 , the Company entered into one note payable collateralized by a real estate asset in the principal amount of $25,000,000 . • During the three months ended March 31, 2017 , the Company entered into four interest rate swap agreements to effectively fix the London Interbank Offered Rate, or LIBOR, on $75,000,000 of the term loan of the secured credit facility. The principal payments due on the notes payable and secured credit facility for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Total Amount Nine months ending December 31, 2017 $ — 2018 210,050 2019 101,369 2020 1,911 2021 151,203 Thereafter 23,457 $ 487,990 |
Related-Party Transactions and
Related-Party Transactions and Arrangements | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions and Arrangements | Related-Party Transactions and Arrangements The Company reimburses the Advisor and its affiliates for organization and offering expenses it incurs on the Company’s behalf, but only to the extent the reimbursement would not cause the selling commissions, dealer manager fees, distribution and servicing fees and other organization and offering expenses to exceed 15% of the gross proceeds of the Offering. The Company expects that organization and offering expenses (other than selling commissions, dealer manager fees and distribution and servicing fees) will be approximately 1.50% of the gross proceeds. As of March 31, 2017 , since inception, the Advisor and its affiliates incurred approximately $13,975,000 on the Company’s behalf in offering costs, of which approximately $316,000 of other organization and offering expenses remained accrued as of March 31, 2017 . Other organization expenses are expensed as incurred and offering expenses are charged to stockholders’ equity as incurred. The Company pays to the Advisor 2.0% of the contract purchase price of each property or asset acquired and 2.0% of the amount advanced with respect to a mortgage loan. For the three months ended March 31, 2017 and 2016 , the Company incurred approximately $3,083,000 and $2,233,000 , respectively, in acquisition fees to the Advisor or its affiliates. In addition, the Company reimburses the Advisor for acquisition expenses incurred in connection with the selection and acquisition of properties or other real estate-related investments (including expenses relating to potential investments that the Company does not close), such as legal fees and expenses, costs of real estate due diligence, appraisals, non-refundable option payments on properties not acquired, travel and communications expenses, accounting fees and expenses and title insurance premiums, whether or not the property was acquired. The Company expects these expenses will be approximately 0.75% of the purchase price of each property or real estate-related investment. The Company pays to the Advisor an asset management fee calculated on a monthly basis in an amount equal to 1/12t h of 0.75% of gross assets (including amounts borrowed), which is payable monthly in arrears. For the three months ended March 31, 2017 and 2016 , the Company incurred approximately $2,006,000 and $955,000 , respectively, in asset management fees. In connection with the rental, leasing, operation and management of the Company’s properties, the Company pays the Property Manager and its affiliates aggregate fees equal to 3.0% of gross revenues from the properties managed, or property management fees. The Company will reimburse the Property Manager and its affiliates for property-level expenses that any of them pay or incur on the Company’s behalf, including salaries, bonuses and benefits of persons employed by the Property Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as one of its executive officers. The Property Manager and its affiliates may subcontract the performance of their duties to third parties and pay all or a portion of the property management fee to the third parties with whom they contract for these services. If the Company contracts directly with third parties for such services, it will pay them customary market fees and may pay the Property Manager an oversight fee equal to 1.0% of the gross revenues of the properties managed. In no event will the Company pay the Property Manager or any affiliate both a property management fee and an oversight fee with respect to any particular property. The Company also will pay the Property Manager a separate fee for the one-time initial rent-up, leasing-up of newly constructed properties or re-leasing to existing tenants. For the three months ended March 31, 2017 and 2016 , the Company incurred approximately $671,000 and $298,000 , respectively, in property management fees to the Property Manager, which are recorded in rental expenses in the accompanying condensed consolidated statements of comprehensive income. For the three months ended March 31, 2017 , the Company incurred $23,000 in leasing commissions to the Property Manager. Leasing commission fees are capitalized in other assets, net in the accompanying condensed consolidated balance sheets. For acting as general contractor and/or construction manager to supervise or coordinate projects or to provide major repairs or rehabilitation on our properties, the Company may pay the Property Manager up to 5.0% of the cost of the projects, repairs and/or rehabilitation, as applicable, or construction management fees. For the three months ended March 31, 2017 , the Company incurred approximately $159,000 in construction management fees to the Property Manager. Construction management fees are capitalized in real estate, net in the accompanying condensed consolidated balance sheets. The Company reimburses the Advisor for all expenses it paid or incurred in connection with the services provided to the Company, subject to certain limitations. Expenses in excess of the operating expenses in the four immediately preceding quarters that exceeds the greater of (a) 2.0% of average invested assets or (b) 25% of net income, subject to certain adjustments, will not be reimbursed unless the independent directors determine such excess expenses are justified. The Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives an acquisition fee or a disposition fee. For the three months ended March 31, 2017 and 2016 , the Advisor allocated approximately $365,000 and $278,000 , respectively, in operating expenses to the Company. The Company will pay its Advisor, or its affiliates, if it provides a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, a disposition fee, up to the lesser of 1.0% of the contract sales price and one-half of the total brokerage commission paid if a third party broker is also involved, without exceeding the lesser of 6.0% of the contract sales price or a reasonable, customary and competitive real estate commission. As of March 31, 2017 , the Company has not incurred any disposition fees to the Advisor or its affiliates. The Advisor will receive 15% of the remaining net sale proceeds after return of capital contributions plus payment to investors of a 6.0% annual cumulative, non-compounded return on the capital contributed by investors. As of March 31, 2017 , the Company has not incurred any subordinated participation in net sale proceeds to the Advisor or its affiliates. Upon the listing of the Company’s shares on a national securities exchange, the Advisor will receive 15.0% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to a 6.0% annual cumulative, non-compounded return to investors, or the subordinated incentive listing fee. As of March 31, 2017 , the Company has not incurred any subordinated incentive listing fees to the Advisor or its affiliates. Upon termination or non-renewal of the advisory agreement, with or without cause, the Advisor will be entitled to receive subordinated termination fees from the Operating Partnership equal to 15% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, non-compounded return to investors. In addition, the Advisor may elect to defer its right to receive a subordinated termination fee upon termination until either shares of the Company’s common stock are listed and traded on a national securities exchange or another liquidity event occurs. As of March 31, 2017 , the Company has not incurred any subordinated termination fees to the Advisor or its affiliates. The Company pays the Dealer Manager selling commissions of up to 7.0% of the gross offering proceeds per Class A share and up to 3.0% of gross offering proceeds per Class T share. All selling commissions are expected to be re-allowed to participating broker-dealers. The Company does not pay selling commissions with respect to Class I shares and shares of any class sold pursuant to the DRIP. In addition, the Company pays the Dealer Manager a dealer manager fee of up to 3.0% of gross offering proceeds from the sale of Class A and Class T shares. The Dealer Manager may receive up to 2.0% of the gross offering proceeds from the sale of Class I shares as a dealer manager fee, of which 1.0% will be funded by our Advisor without reimbursement from us. The 1.0% of the dealer manager fee paid from offering proceeds will be waived in the event an investor purchases Class I shares through a registered investment advisor that is not affiliated with a broker dealer. The dealer manager fee may be partially re-allowed to participating broker-dealers. No dealer manager fees will be paid in connection with purchases of shares of any class made pursuant to the DRIP. For the three months ended March 31, 2017 and 2016 , the Company incurred approximately $4,945,000 and $8,004,000 , respectively, for selling commissions and dealer manager fees in connection with the Offering to the Dealer Manager. The Company pays the Dealer Manager a distribution and servicing fee with respect to its Class T shares that are sold in the primary offering that accrues daily in an amount equal to 1/365th of 1.0% of the most recent offering price per Class T share sold in the primary offering on a continuous basis from year to year; provided, however, that upon the termination of the primary offering, the distribution and servicing fee will accrue daily in an amount equal to 1/365th of 1.0% of the most recent estimated NAV per Class T share on a continuous basis from year to year. Termination of such payment will commence on the earliest to occur of the following: (i) a listing of the Class T shares on a national securities exchange, (ii) following the completion of the Offering, total underwriting compensation in the Offering equaling 10% of the gross proceeds from the primary portion of the Offering, (iii) there are no longer any Class T shares outstanding, or (iv) the fourth anniversary of the last day of the fiscal quarter in which the primary offering terminates. The Dealer Manager may re-allow the distribution and servicing fee to participating broker-dealers and servicing broker-dealers. The distribution and servicing fee is paid monthly in arrears. The distribution and servicing fee will not be payable with respect to Class T shares issued under the DRIP. The Company does not pay a distribution and servicing fee with respect to Class A and Class I shares. For the three months ended March 31, 2017 and 2016 , the Company incurred approximately $1,649,000 and $22,000 , respectively, in distribution and servicing fees to the Dealer Manager. Accounts Payable Due to Affiliates The following amounts were due to affiliates as of March 31, 2017 and December 31, 2016 (amounts in thousands): Entity Fee March 31, 2017 December 31, 2016 Carter Validus Advisors II, LLC and its affiliates Asset management fees $ 727 $ 627 Carter Validus Real Estate Management Services II, LLC Property management fees 325 252 Carter Validus Real Estate Management Services II, LLC Construction management fees 52 323 Carter Validus Advisors II, LLC and its affiliates General and administrative costs 168 138 Carter Validus Advisors II, LLC and its affiliates Offering costs 316 289 SC Distributors, LLC Distribution and servicing fees 7,083 5,750 Carter Validus Advisors II, LLC and its affiliates Acquisition expenses and fees 1 5 $ 8,672 $ 7,384 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Management reviews the performance of individual properties and aggregates individual properties based on operating criteria into two reportable segments—commercial real estate investments in data centers and healthcare, and makes operating decisions based on these two reportable segments. The Company’s commercial real estate investments in data centers and healthcare are based on certain underwriting assumptions and operating criteria, which are different for data centers and healthcare. There were no intersegment sales or transfers during the three months ended March 31, 2017 and 2016 . The Company evaluates performance based on net operating income of the individual properties in each segment. Net operating income, a non-GAAP financial measure, is defined as total revenues, less rental expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses, asset management fees and interest expense, net. The Company believes that segment net operating income serves as a useful supplement to net income because it allows investors and management to measure unlevered property-level operating results and to compare operating results to the operating results of other real estate companies between periods on a consistent basis. Segment net operating income should not be considered as an alternative to net income determined in accordance with GAAP as an indicator of financial performance, and accordingly, the Company believes that in order to facilitate a clear understanding of the consolidated historical operating results, segment net operating income should be examined in conjunction with net income as presented in the accompanying condensed consolidated financial statements and data included elsewhere in this Quarterly Report on Form 10-Q . General and administrative expenses, acquisition related expenses, asset management fees, depreciation and amortization and interest expense, net are not allocated to individual segments for purposes of assessing segment performance. Non-segment assets primarily consist of corporate assets, including cash and cash equivalents, real estate and escrow deposits, deferred financing costs attributable to the revolving line of credit portion of the Company's secured credit facility and other assets not attributable to individual properties. Summary information for the reportable segments during the three months ended March 31, 2017 and 2016 , is as follows (amounts in thousands): Data Centers Healthcare Three Months Ended Revenue: Rental and tenant reimbursement revenue $ 9,704 $ 14,318 $ 24,022 Expenses: Rental expenses (2,660 ) (2,266 ) (4,926 ) Segment net operating income $ 7,044 $ 12,052 19,096 Expenses: General and administrative expenses (925 ) Acquisition related expenses — Asset management fees (2,006 ) Depreciation and amortization (7,610 ) Income from operations 8,555 Interest expense, net (3,764 ) Net income attributable to common stockholders $ 4,791 Data Centers Healthcare Three Months Ended Revenue: Rental and tenant reimbursement revenue $ 1,537 $ 9,887 $ 11,424 Expenses: Rental expenses (254 ) (1,430 ) (1,684 ) Segment net operating income $ 1,283 $ 8,457 9,740 Expenses: General and administrative expenses (765 ) Acquisition related expenses (1,665 ) Asset management fees (955 ) Depreciation and amortization (3,866 ) Income from operations 2,489 Interest expense, net (879 ) Net income attributable to common stockholders $ 1,610 Assets by each reportable segment as of March 31, 2017 and December 31, 2016 are as follows (amounts in thousands): March 31, 2017 December 31, 2016 Assets by segment: Data centers $ 439,523 $ 362,969 Healthcare 740,544 653,416 All other 67,512 53,653 Total assets $ 1,247,579 $ 1,070,038 Capital additions and acquisitions by reportable segments for the three months ended March 31, 2017 and 2016 are as follows (amounts in thousands): Three Months Ended 2017 2016 Capital additions and acquisitions by segment: Data centers $ 75,088 $ 44,161 Healthcare 89,939 41,489 Total capital additions and acquisitions $ 165,027 $ 85,650 |
Future Minimum Rent
Future Minimum Rent | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Rent | Future Minimum Rent Rental Income The Company’s real estate assets are leased to tenants under operating leases with varying terms. The leases frequently have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The future minimum rent to be received from the Company’s investment in real estate assets under non-cancelable operating leases for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 59,889 2018 81,199 2019 81,147 2020 80,727 2021 82,181 Thereafter 752,018 $ 1,137,161 Rental Expense The Company has ground lease obligations that generally require fixed annual rental payments and may also include escalation clauses and renewal options. The future minimum rent obligations under non-cancelable ground leases for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 6 2018 8 2019 8 2020 8 2021 8 Thereafter 781 $ 819 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Notes payable—Fixed Rate —The estimated fair value of notes payable—fixed rate measured using quoted prices and observable inputs from similar liabilities (Level 2) was approximately $73,911,000 and $49,930,000 as of March 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $76,000,000 and $51,000,000 as of March 31, 2017 and December 31, 2016 , respectively. The estimated fair value of notes payable—variable rate fixed through interest rate swap agreements (Level 2) was approximately $98,747,000 and $69,247,000 as of March 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $101,990,000 and $71,540,000 as of March 31, 2017 and December 31, 2016 , respectively. Secured credit facility —The outstanding principal of the secured credit facility – variable was $210,000,000 and $195,000,000 , which approximated its fair value as of March 31, 2017 and December 31, 2016 , respectively. The fair value of the Company's variable rate secured credit facility is estimated based on the interest rates currently offered to the Company by financial institutions. The estimated fair value of the secured credit facility – variable rate fixed through an interest rate swap agreement (Level 2) was approximately $98,004,000 and $24,195,000 as of March 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $100,000,000 and $25,000,000 as of March 31, 2017 and December 31, 2016 , respectively. Derivative instruments —Considerable judgment is necessary to develop estimated fair values of financial instruments. Accordingly, the estimates presented herein are not necessarily indicative of the amount the Company could realize, or be liable for, on disposition of the financial instruments. The Company has determined that the majority of the inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of March 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions, and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation is classified in Level 2 of the fair value hierarchy. The following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 2,258 $ — $ 2,258 Total assets at fair value $ — $ 2,258 $ — $ 2,258 Liabilities: Derivative liabilities $ — $ 514 $ — $ 514 Total liabilities at fair value $ — $ 514 $ — $ 514 December 31, 2016 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 1,782 $ — $ 1,782 Total assets at fair value $ — $ 1,782 $ — $ 1,782 Liabilities: Derivative liabilities $ — $ 798 $ — $ 798 Total liabilities at fair value $ — $ 798 $ — $ 798 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income in the accompanying condensed consolidated statement of stockholders' equity and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2017 , the Company's derivative instruments were used to hedge the variable cash flows associated with variable rate debt. The ineffective portion of changes in fair value of the derivatives are recognized directly in earnings. During the three months ended March 31, 2017 , the Company recognized a loss of $8,000 due to ineffectiveness of its hedges of interest rate risk, which was recorded in interest expense, net in the accompanying condensed consolidated statements of comprehensive income . Amounts reported in accumulated other comprehensive income related to the derivative will be reclassified to interest expense, net as interest payments are made on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $730,000 will be reclassified from accumulated other comprehensive income as an increase to interest expense, net. See Note 12—"Fair Value" for a further discussion of the fair value of the Company’s derivative instruments. The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity March 31, 2017 December 31, 2016 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 07/01/2016 to 12/22/2020 to $ 201,990 $ 2,258 $ (514 ) $ 96,540 $ 1,782 $ (798 ) The notional amount under the agreements is an indication of the extent of the Company’s involvement in the instruments at the time, but does not represent exposure to credit, interest rate or market risks. Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges to hedge the variability of the anticipated cash flows on its variable rate secured credit facility and notes payable. The change in fair value of the effective portion of the derivative instruments that are designated as hedges is recorded in other comprehensive income, or OCI, in the accompanying condensed consolidated statements of comprehensive income . The table below summarizes the amount of income recognized on the interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2017 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Income Recognized Location of Income Amount of (Loss) Three Months Ended March 31, 2017 Interest rate swap $ 413 Interest expense, net $ (355 ) Total $ 413 $ (355 ) The Company did not have derivative instruments as of March 31, 2016. Credit Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain cross-default provisions, whereby if the Company defaults on certain of its indebtedness, then the Company could also be declared in default on its derivative obligation, resulting in an acceleration of payment thereunder. In addition, t he Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. As of March 31, 2017 , the fair value of the derivative in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to the agreement, was $607,000 . As of March 31, 2017 , there were no termination events or events of default related to the interest rate swaps. Tabular Disclosure Offsetting Derivatives The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 2,258 $ — $ 2,258 $ — $ — $ 2,258 December 31, 2016 $ 1,782 $ — $ 1,782 $ — $ — $ 1,782 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 514 $ — $ 514 $ — $ — $ 514 December 31, 2016 $ 798 $ — $ 798 $ — $ — $ 798 The Company reports derivatives in the accompanying condensed consolidated balance sheets as other assets, net and accounts payable and other liabilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the three months ended March 31, 2017 (amounts in thousands): Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2016 $ 840 $ 840 Other comprehensive income before reclassification 413 413 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 355 355 Other comprehensive income 768 768 Balance as of March 31, 2017 $ 1,608 $ 1,608 The following table presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2017 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Consolidated Statements of Comprehensive Income Three Months Ended 2017 Interest rate swap contracts $ 355 Interest expense, net The Company did no t have derivative instruments as of March 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company may become subject to litigation or claims. As of March 31, 2017 , there were, and currently there are, no material pending legal proceedings to which the Company is a party. |
Economic Dependency
Economic Dependency | 3 Months Ended |
Mar. 31, 2017 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the sale of the Company’s shares of common and preferred stock available for issuance; the identification, evaluation, negotiation, purchase and disposition of real estate investments and other investments; the management of the daily operations of the Company’s real estate portfolio; and other general and administrative responsibilities. In the event that the Advisor and its affiliates are unable to provide the respective services, the Company will be required to obtain such services from other sources. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions to Stockholders Paid On April 3, 2017, the Company paid aggregate distributions of approximately $3,974,000 to Class A stockholders ( $1,927,000 in cash and $2,047,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from March 1, 2017 through March 31, 2017. On May 1, 2017, the Company paid aggregate distributions of approximately $3,913,000 to Class A stockholders ( $1,898,000 in cash and $2,015,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from April 1, 2017 through April 30, 2017. On April 3, 2017, the Company paid aggregate distributions of approximately $1,000 to Class I stockholders ( $400 in cash and $600 in shares of the Company's Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from March 1, 2017 through March 31, 2017. On May 1, 2017, the Company paid aggregate distributions of approximately $9,000 to Class I stockholders ( $3,000 in cash and $6,000 in shares of the Company's Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from April 1, 2017 through April 30, 2017. On April 3, 2017, the Company paid aggregate distributions of approximately $762,000 to Class T stockholders ( $308,000 in cash and $454,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from March 1, 2017 through March 31, 2017. On May 1, 2017, the Company paid aggregate distributions of approximately $797,000 to Class T stockholders ( $324,000 in cash and $473,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from April 1, 2017 through April 30, 2017. Distributions Declared Class A Shares On May 4, 2017, the board of directors of the Company approved and declared a distribution to the Company’s Class A stockholders of record as of the close of business on each day of the period commencing on June 1, 2017 and ending on August 31, 2017. The distributions will be calculated based on 365 days in the calendar year and will be equal to $0.001767101 per share of Class A common stock, which will be equal to an annualized distribution rate of 6.40% , assuming a purchase price of $10.078 per share of Class A common stock. The distributions declared for each record date in June 2017, July 2017 and August 2017 will be paid in July 2017, August 2017 and September 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class I Shares On May 4, 2017, the board of directors of the Company approved and declared a daily distribution to the Company’s Class I stockholders of record as of the close of business on each day of the period commencing on June 1, 2017 and ending on August 31, 2017. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001767101 per share of Class I common stock, which will be equal to an annualized distribution rate of 7.04% , assuming a purchase price of $9.162 per share. The distributions declared for each record date in June 2017, July 2017 and August 2017 will be paid in July 2017, August 2017 and September 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class T Shares On May 4, 2017, the board of directors of the Company approved and declared a daily distribution to the Company’s Class T stockholders of record as of the close of business on each day of the period commencing on June 1, 2017 and ending on August 31, 2017. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001501543 per share of Class T common stock, which will be equal to an annualized distribution rate of 5.68% , assuming a purchase price of $9.649 per share. The distributions declared for each record date in June 2017, July 2017 and August 2017 will be paid in July 2017, August 2017 and September 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor. Status of the Offering, the Extension of the Offering and the Filing of a Registration Statement for a Follow-On Offering As of May 9, 2017 , the Company had accepted investors’ subscriptions for and issued approximately 75,526,000 shares of Class A common stock, 532,000 shares of Class I common stock and 18,676,000 shares of Class T common stock in the Offering, resulting in receipt of gross proceeds of approximately $748,305,000 , $4,858,000 and $178,771,000 , respectively, including shares of its common stock issued pursuant to its DRIP. As of May 9, 2017 , the Company had approximately $1,418,066,000 in Class A shares, Class I shares and Class T shares of common stock remaining in the Offering. On May 1, 2017, the Company filed a registration statement on Form S-11 under the Securities Act to register a maximum of $332,500,000 of shares of common stock in the primary offering pursuant to a proposed follow-on offering, and a maximum of $17,500,000 of additional shares pursuant to the DRIP. Accordingly, as provided pursuant to Rule 415 promulgated under the Securities Act, the Company extended the Offering until the earlier of (i) the effective date of the registration statement for the proposed follow-on public offering, (ii) November 25, 2017, that date that is 180 days after the third anniversary of the effective date of the Offering, or (iii) the date the maximum offering amount under the Offering is sold . The Company may terminate the Offering at any time. The Company has no t issued any shares in connection with the proposed follow-on offering as the registration statement on Form S-11 has not been declared effective by the SEC. Renewal of the Management Agreement On May 4, 2017, the board of directors, including all independent directors of the Company, after review of the Property Manager’s performance during the last year, authorized the Company to execute a mutual consent to renew the management agreement by and among the Company, the Operating Partnership and the Property Manager, dated May 19, 2014, as amended and renewed. The renewal will be for a one -year term and will be effective as of May 19, 2017 . Renewal of the Advisory Agreement On May 4, 2017, the board of directors, including all independent directors of the Company, after review of the Advisor’s performance during the last year, authorized the Company to execute a mutual consent to renew the amended and restated advisory agreement, by and among the Company, the Operating Partnership and the Advisor, dated June 10, 2014, as amended and renewed. The renewal will be for a one -year term and will be effective as of June 10, 2017 . Notes Payable The following table summarizes the notes payable entered into subsequent to March 31, 2017 and through May 12, 2017: Property Principal Amount Maturity Date Interest Rate Norwalk Data Center $34,200,000 04/19/2022 LIBOR plus 2.50% Texas Rehabilitation Hospital Portfolio $39,900,000 04/20/2022 LIBOR plus 2.875% |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Concentration of Credit Risk and Significant Leases | Concentration of Credit Risk and Significant Leases As of March 31, 2017 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels; however, the Company has not experienced any losses in such accounts. The Company limits its cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss or lack of access to cash in its accounts. As of March 31, 2017 , the Company owned real estate investments in 32 MSAs, one of which accounted for 10.0% or more of contractual rental revenue. Real estate investments located in the Oklahoma City, Oklahoma MSA accounted for 12.9% of contractual rental revenue for the three months ended March 31, 2017 . |
Share Repurchase Program | Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a Qualifying Disability of a stockholder, are limited to those that can be funded with equivalent proceeds raised from the DRIP Offering during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors. The Company will limit the number of shares repurchased pursuant to the share repurchase program as follows: during any calendar year, the Company will not repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31 st of the previous calendar year. In addition, the Company’s board of directors, in its sole discretion, may amend, suspend, reduce, terminate or otherwise change the share repurchase program upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate. During the three months ended March 31, 2017 , the Company received valid repurchase requests related to 240,902 Class A shares of common stock, all of which were repurchased in full for an aggregate purchase price of approximately $2,185,000 (an average of $9.07 per share). During the three months ended March 31, 2016 , the Company received valid repurchase requests related to 35,970 Class A shares of common stock , all of which were repurchased in full for an aggregate purchase price of approximately $338,000 (an average of $9.40 per share). No shares of Class I common stock or Class T common stock were requested to be, or were, repurchased during the three months ended March 31, 2017 and 2016 . |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. For the three months ended March 31, 2017 and 2016 , diluted earnings per share reflected the effect of approximately 17,000 and 13,000 , respectively, of non-vested shares of restricted stock that were outstanding as of such period. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle, which may require more judgment and estimates within the revenue recognition process than are required under existing GAAP. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date , or ASU 2015-14. ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers Principal versus Agent Considerations (Reporting Revenue Gross versus Net), or ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. ASU 2016-08 clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. The effective date and transition of this update is the same as the effective date and transition of ASU 2015-14. The Company believes the adoption of ASUs 2014-09 and 2016-08 will not have a material impact on the Company’s consolidated financial statements, but may result in additional disclosures. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2016-02 will have on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements. On November 17, 2016, the FASB issued ASU 2016-18, Restricted Cash , or ASU 2016-18. ASU 2016-18 requires that a statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. This ASU states that transfers between cash, cash equivalents, and restricted cash are not part of the entity’s operating, investing, and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. This ASU should be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the impact ASU 2016-18 will have on the Company’s consolidated statements of cash flows. On January 5, 2017, the FASB issued ASU 2017-01, Business Combinations , or ASU 2017-01. ASU 2017-01 clarifies the definition of a business. The objective of ASU 2017-01 is to add further guidance that assists entities in evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted using a prospective transition method. The Company adopted ASU 2017-01 effective October 1, 2016. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2017-05 will have on the Company’s condensed consolidated financial statements. |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Asset Acquisitions | The following table summarizes the acquisitions during the three months ended March 31, 2017 : Property Description Date Ownership Purchase Price (amounts in thousands) Tempe Data Center 01/26/2017 100% $ 16,224 Norwalk Data Center 03/30/2017 100% 58,885 Aurora Healthcare Facility 03/30/2017 100% 11,531 Texas Rehab - Austin 03/31/2017 100% 36,945 Texas Rehab - Allen 03/31/2017 100% 23,691 Texas Rehab - Beaumont 03/31/2017 100% 10,414 Total $ 157,690 |
Schedule of Allocation of Asset Acquisitions | The following table summarizes management's allocation of the acquisitions during the three months ended March 31, 2017 , based on a relative fair value method allocating all accumulated costs (amounts in thousands): Total Land $ 17,267 Buildings and improvements 125,977 In-place leases 14,446 Total assets acquired $ 157,690 |
Acquired Intangible Assets, N27
Acquired Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Acquired Intangible Assets, Net | Acquired intangible assets, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 In-place leases, net of accumulated amortization of $10,267 and $7,918, respectively (with a weighted average remaining life of 12.9 years and 12.8 years, respectively) $ 110,073 $ 97,232 Above-market leases, net of accumulated amortization of $65 and $58, respectively (with a weighted average remaining life of 7.2 years and 7.4 years, respectively) 189 196 Ground lease interest, net of accumulated amortization of $21 and $19, respectively (with a weighted average remaining life of 66.6 years and 66.8 years, respectively) 623 625 $ 110,885 $ 98,053 |
Intangible Lease Liabilities,28
Intangible Lease Liabilities, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Lease Liabilities, Net [Abstract] | |
Schedule of Intangible Lease Liabilities, Net | Intangible lease liabilities, net consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 Below-market leases, net of accumulated amortization of $768 and $634, respectively (with a weighted average remaining life of 13.3 years and 13.6 years, respectively) $ 6,739 $ 6,873 $ 6,739 $ 6,873 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Assets, Net | Other assets, net consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 December 31, 2016 Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $2,169 and $1,789, respectively $ 2,857 $ 3,071 Real estate escrow deposits 3,620 290 Restricted cash held in escrow 6,481 6,458 Tenant receivable 3,724 3,126 Straight-line rent receivable 10,957 8,725 Prepaid and other assets 1,514 1,087 Derivative assets 2,258 1,782 $ 31,411 $ 24,539 |
Accounts Payable and Other Li30
Accounts Payable and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities as of March 31, 2017 and December 31, 2016 , were comprised of the following (amounts in thousands): March 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 7,533 $ 7,657 Accrued interest expense 1,320 945 Accrued property taxes 1,657 1,164 Distributions payable to stockholders 4,737 4,336 Tenant deposits 1,380 1,551 Deferred rental income 2,840 733 Derivative liability 514 798 $ 19,981 $ 17,184 |
Notes Payable and Secured Cre31
Notes Payable and Secured Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt outstanding as of March 31, 2017 and December 31, 2016 consisted of the following (amounts in thousands): March 31, 2017 December 31, 2016 Notes payable: Fixed rate notes payable $ 76,000 $ 51,000 Variable rate notes payable fixed through interest rate swaps 101,990 71,540 Variable rate notes payable — (1) 30,450 Total notes payable, principal amount outstanding 177,990 152,990 Unamortized deferred financing costs related to notes payable (2,196 ) (1,945 ) Total notes payable, net of deferred financing costs 175,794 151,045 Secured credit facility: Revolving line of credit 210,000 120,000 Term loan 100,000 100,000 Total secured credit facility, principal amount outstanding 310,000 220,000 Unamortized deferred financing costs related to the term loan of the secured credit facility (803 ) (876 ) Total secured credit facility, net of deferred financing costs 309,197 219,124 Total debt outstanding $ 484,991 $ 370,169 (1) During the three months ended March 31, 2017 , the Company converted its $30,450,000 variable note payable into a variable rate note payable fixed through interest rate swap. |
Schedule of Future Principal Payments Due on Notes Payable and Secured Credit Facility | The principal payments due on the notes payable and secured credit facility for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Total Amount Nine months ending December 31, 2017 $ — 2018 210,050 2019 101,369 2020 1,911 2021 151,203 Thereafter 23,457 $ 487,990 |
Related-Party Transactions an32
Related-Party Transactions and Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts Payable Due to Affiliates | The following amounts were due to affiliates as of March 31, 2017 and December 31, 2016 (amounts in thousands): Entity Fee March 31, 2017 December 31, 2016 Carter Validus Advisors II, LLC and its affiliates Asset management fees $ 727 $ 627 Carter Validus Real Estate Management Services II, LLC Property management fees 325 252 Carter Validus Real Estate Management Services II, LLC Construction management fees 52 323 Carter Validus Advisors II, LLC and its affiliates General and administrative costs 168 138 Carter Validus Advisors II, LLC and its affiliates Offering costs 316 289 SC Distributors, LLC Distribution and servicing fees 7,083 5,750 Carter Validus Advisors II, LLC and its affiliates Acquisition expenses and fees 1 5 $ 8,672 $ 7,384 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Information for Reportable Segments | Summary information for the reportable segments during the three months ended March 31, 2017 and 2016 , is as follows (amounts in thousands): Data Centers Healthcare Three Months Ended Revenue: Rental and tenant reimbursement revenue $ 9,704 $ 14,318 $ 24,022 Expenses: Rental expenses (2,660 ) (2,266 ) (4,926 ) Segment net operating income $ 7,044 $ 12,052 19,096 Expenses: General and administrative expenses (925 ) Acquisition related expenses — Asset management fees (2,006 ) Depreciation and amortization (7,610 ) Income from operations 8,555 Interest expense, net (3,764 ) Net income attributable to common stockholders $ 4,791 Data Centers Healthcare Three Months Ended Revenue: Rental and tenant reimbursement revenue $ 1,537 $ 9,887 $ 11,424 Expenses: Rental expenses (254 ) (1,430 ) (1,684 ) Segment net operating income $ 1,283 $ 8,457 9,740 Expenses: General and administrative expenses (765 ) Acquisition related expenses (1,665 ) Asset management fees (955 ) Depreciation and amortization (3,866 ) Income from operations 2,489 Interest expense, net (879 ) Net income attributable to common stockholders $ 1,610 |
Schedule of Assets by Reportable Segments | Assets by each reportable segment as of March 31, 2017 and December 31, 2016 are as follows (amounts in thousands): March 31, 2017 December 31, 2016 Assets by segment: Data centers $ 439,523 $ 362,969 Healthcare 740,544 653,416 All other 67,512 53,653 Total assets $ 1,247,579 $ 1,070,038 |
Schedule of Capital Additions and Acquisitions by Reportable Segments | Capital additions and acquisitions by reportable segments for the three months ended March 31, 2017 and 2016 are as follows (amounts in thousands): Three Months Ended 2017 2016 Capital additions and acquisitions by segment: Data centers $ 75,088 $ 44,161 Healthcare 89,939 41,489 Total capital additions and acquisitions $ 165,027 $ 85,650 |
Future Minimum Rent (Tables)
Future Minimum Rent (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases | The future minimum rent to be received from the Company’s investment in real estate assets under non-cancelable operating leases for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 59,889 2018 81,199 2019 81,147 2020 80,727 2021 82,181 Thereafter 752,018 $ 1,137,161 |
Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases | The future minimum rent obligations under non-cancelable ground leases for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 6 2018 8 2019 8 2020 8 2021 8 Thereafter 781 $ 819 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 2,258 $ — $ 2,258 Total assets at fair value $ — $ 2,258 $ — $ 2,258 Liabilities: Derivative liabilities $ — $ 514 $ — $ 514 Total liabilities at fair value $ — $ 514 $ — $ 514 December 31, 2016 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 1,782 $ — $ 1,782 Total assets at fair value $ — $ 1,782 $ — $ 1,782 Liabilities: Derivative liabilities $ — $ 798 $ — $ 798 Total liabilities at fair value $ — $ 798 $ — $ 798 |
Derivative Instruments and He36
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Notional Amount and Fair Value of Derivative Instruments | The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity March 31, 2017 December 31, 2016 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 07/01/2016 to 12/22/2020 to $ 201,990 $ 2,258 $ (514 ) $ 96,540 $ 1,782 $ (798 ) |
Schedule of Income and Losses Recognized on Derivative Instruments | The table below summarizes the amount of income recognized on the interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2017 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Income Recognized Location of Income Amount of (Loss) Three Months Ended March 31, 2017 Interest rate swap $ 413 Interest expense, net $ (355 ) Total $ 413 $ (355 ) |
Schedule of Offsetting of Derivative Assets | The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 2,258 $ — $ 2,258 $ — $ — $ 2,258 December 31, 2016 $ 1,782 $ — $ 1,782 $ — $ — $ 1,782 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 514 $ — $ 514 $ — $ — $ 514 December 31, 2016 $ 798 $ — $ 798 $ — $ — $ 798 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the three months ended March 31, 2017 (amounts in thousands): Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2016 $ 840 $ 840 Other comprehensive income before reclassification 413 413 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 355 355 Other comprehensive income 768 768 Balance as of March 31, 2017 $ 1,608 $ 1,608 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2017 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Consolidated Statements of Comprehensive Income Three Months Ended 2017 Interest rate swap contracts $ 355 Interest expense, net |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events | Notes Payable The following table summarizes the notes payable entered into subsequent to March 31, 2017 and through May 12, 2017: Property Principal Amount Maturity Date Interest Rate Norwalk Data Center $34,200,000 04/19/2022 LIBOR plus 2.50% Texas Rehabilitation Hospital Portfolio $39,900,000 04/20/2022 LIBOR plus 2.875% |
Organization and Business Ope39
Organization and Business Operations (Details) shares in Thousands | Mar. 31, 2017USD ($)micropolitanpropertyreal_estate_investmentmetropolitanshares | Mar. 31, 2017USD ($)micropolitanpropertyreal_estate_investmentmetropolitan | May 29, 2014USD ($) |
Organization and Business Operations [Line Items] | |||
Selling commissions and dealer manager fees | $ 4,945,000 | ||
Other offering costs | $ 1,573,000 | ||
Number of Company owned real estate investments | real_estate_investment | 41 | 41 | |
Number of Company owned properties | property | 57 | 57 | |
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 32 | 32 | |
Number of micropolitan statistical areas in which Company owns rental property | micropolitan | 1 | 1 | |
Offering [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering including DRIP, value | $ 2,350,000,000 | ||
Common stock offering, value | 2,250,000,000 | ||
Common stock offering pursuant to DRIP, value | $ 100,000,000 | ||
Selling commissions and dealer manager fees | $ 74,130,000 | ||
Other offering costs | $ 17,450,000 | ||
Offering [Member] | Common Class A, I and T shares [Member] | Common Stock [Member] | |||
Organization and Business Operations [Line Items] | |||
Common stock offering, shares issued | shares | 91,026 | ||
Common stock offering, gross proceeds raised | $ 896,207,000 | ||
Common stock offering, value remaining | $ 1,453,793,000 | $ 1,453,793,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)metropolitan$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | |
Summary of Significant Accounting Policies [Line Items] | ||
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 32 | |
Maximum number of shares available for repurchase during any calendar year, as percentage of common stock outstanding at end of prior year | 5.00% | |
Period of notice required for changes to share repurchase program | 30 days | |
Repurchase of common stock | $ | $ 2,185 | |
Diluted earnings per share outstanding adjustment (in shares) | 17,000 | 13,000 |
Common Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Repurchase of common stock (in shares) | 240,902 | |
Repurchase of common stock | $ | $ 2 | |
Class A shares [Member] | Common Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Repurchase of common stock (in shares) | 240,902 | 35,970 |
Repurchase of common stock | $ | $ 2,185 | $ 338 |
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 9.07 | $ 9.40 |
Class I shares [Member] | Common Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Repurchase of common stock (in shares) | 0 | 0 |
Class T shares [Member] | Common Stock [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Repurchase of common stock (in shares) | 0 | 0 |
Rental Revenue [Member] | Geographic Concentration Risk [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 1 | |
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Oklahoma City, Oklahoma MSA [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 12.90% |
Real Estate Investments (Narrat
Real Estate Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)property | Mar. 31, 2016USD ($) | |
Real Estate Properties [Line Items] | ||
Number of real estate acquisitions | property | 6 | |
Purchase price | $ 157,690 | |
Liability assumed at acquisition | 815 | $ 0 |
Acquisition fees and costs capitalized | $ 4,093 | $ 1,387 |
Maximum [Member] | ||
Real Estate Properties [Line Items] | ||
Acquisition fee and cost reimbursement, as percentage of contract purchase price of a property | 6.00% |
Real Estate Investments (Schedu
Real Estate Investments (Schedule of Asset Acquisitions) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Asset Acquisition [Line Items] | |
Purchase Price | $ 157,690 |
Tempe Data Center [Member] | |
Asset Acquisition [Line Items] | |
Date Acquired | Jan. 26, 2017 |
Ownership Percentage | 100.00% |
Purchase Price | $ 16,224 |
Norwalk Data Center [Member] | |
Asset Acquisition [Line Items] | |
Date Acquired | Mar. 30, 2017 |
Ownership Percentage | 100.00% |
Purchase Price | $ 58,885 |
Aurora Healthcare Facility [Member] | |
Asset Acquisition [Line Items] | |
Date Acquired | Mar. 30, 2017 |
Ownership Percentage | 100.00% |
Purchase Price | $ 11,531 |
Texas Rehab - Austin [Member] | |
Asset Acquisition [Line Items] | |
Date Acquired | Mar. 31, 2017 |
Ownership Percentage | 100.00% |
Purchase Price | $ 36,945 |
Texas Rehab - Allen [Member] | |
Asset Acquisition [Line Items] | |
Date Acquired | Mar. 31, 2017 |
Ownership Percentage | 100.00% |
Purchase Price | $ 23,691 |
Texas Rehab - Beaumont [Member] | |
Asset Acquisition [Line Items] | |
Date Acquired | Mar. 31, 2017 |
Ownership Percentage | 100.00% |
Purchase Price | $ 10,414 |
Real Estate Investments (Sche43
Real Estate Investments (Schedule of Allocation of Asset Acquisitions) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Real Estate [Abstract] | |
Land | $ 17,267 |
Buildings and improvements | 125,977 |
In-place leases | 14,446 |
Total assets acquired | $ 157,690 |
Acquired Intangible Assets, N44
Acquired Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Depreciation and amortization | $ 7,610 | $ 3,866 |
In-place leases, above-market leases and ground lease interest [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Depreciation and amortization | $ 2,358 | $ 1,181 |
Acquired Intangible Assets, N45
Acquired Intangible Assets, Net (Schedule of Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 110,885 | $ 98,053 |
Acquired intangible asset, accumulated amortization | $ 10,353 | $ 7,995 |
Acquired intangible asset, weighted average remaining life | 13 years 2 months 12 days | 13 years 1 month 6 days |
In-place leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 110,073 | $ 97,232 |
Acquired intangible asset, accumulated amortization | $ 10,267 | $ 7,918 |
Acquired intangible asset, weighted average remaining life | 12 years 10 months 24 days | 12 years 9 months 18 days |
Above-market leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 189 | $ 196 |
Acquired intangible asset, accumulated amortization | $ 65 | $ 58 |
Acquired intangible asset, weighted average remaining life | 7 years 2 months 12 days | 7 years 4 months 24 days |
Ground lease interest [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 623 | $ 625 |
Acquired intangible asset, accumulated amortization | $ 21 | $ 19 |
Acquired intangible asset, weighted average remaining life | 66 years 7 months 6 days | 66 years 9 months 18 days |
Intangible Lease Liabilities,46
Intangible Lease Liabilities, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible Lease Liabilities, Net [Abstract] | ||
Amortization of below-market leases | $ 134 | $ 134 |
Intangible Lease Liabilities,47
Intangible Lease Liabilities, Net (Schedule of Intangible Lease Liabilities, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Intangible Lease Liabilities, Net [Abstract] | ||
Below-market leases, net of accumulated amortization of $768 and $634, respectively (with a weighted average remaining life of 13.3 years and 13.6 years, respectively) | $ 6,739 | $ 6,873 |
Below-market leases, accumulated amortization | $ 768 | $ 634 |
Below market leases, weighted average remaining life | 13 years 3 months 18 days | 13 years 7 months 6 days |
Other Assets, Net (Schedule of
Other Assets, Net (Schedule of Other Assets, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $2,169 and $1,789, respectively | $ 2,857 | $ 3,071 |
Real estate escrow deposits | 3,620 | 290 |
Restricted cash held in escrow | 6,481 | 6,458 |
Tenant receivable | 3,724 | 3,126 |
Straight-line rent receivable | 10,957 | 8,725 |
Prepaid and other assets | 1,514 | 1,087 |
Derivative assets | 2,258 | 1,782 |
Total other assets, net | 31,411 | 24,539 |
Deferred financing costs, accumulated amortization | $ 2,169 | $ 1,789 |
Accounts Payable and Other Li49
Accounts Payable and Other Liabilities (Schedule of Accounts Payable and Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 7,533 | $ 7,657 |
Accrued interest expense | 1,320 | 945 |
Accrued property taxes | 1,657 | 1,164 |
Distributions payable to stockholders | 4,737 | 4,336 |
Tenant deposits | 1,380 | 1,551 |
Deferred rental income | 2,840 | 733 |
Derivative liability | 514 | 798 |
Total accounts payable and other liabilities | $ 19,981 | $ 17,184 |
Notes Payable and Secured Cre50
Notes Payable and Secured Credit Facility (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)interest_rate_swap_agreementloanproperty | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from credit facility | $ 120,000 | $ 20,000 | |
Payments on credit facility | 30,000 | 0 | |
Secured credit facility, increase in borrowing base availability | $ 54,363 | ||
Secured credit facility, number of properties added to aggregate pool availability | property | 5 | ||
Secured credit facility, total pool availability | $ 342,826 | ||
Secured credit facility, principal amount outstanding | 310,000 | $ 220,000 | |
Secured credit facility, amount remaining to be drawn | $ 32,826 | ||
Number of notes payable entered into during period | loan | 1 | ||
Proceeds from notes payable | $ 25,000 | $ 0 | |
Variable Rate Debt, Subject To Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Secured credit facility, principal amount outstanding | 100,000 | 25,000 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Secured credit facility, principal amount outstanding | $ 100,000 | $ 100,000 | |
Number of interest rate swap agreements entered into during period | interest_rate_swap_agreement | 4 | ||
Term Loan [Member] | Variable Rate Debt, Subject To Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Secured credit facility, principal amount outstanding | $ 75,000 |
Notes Payable and Secured Cre51
Notes Payable and Secured Credit Facility (Schedule of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 177,990 | $ 152,990 | |
Unamortized deferred financing costs related to notes payable | (2,196) | (1,945) | |
Notes payable, net of deferred financing costs | 175,794 | 151,045 | |
Secured credit facility, principal amount outstanding | 310,000 | 220,000 | |
Unamortized deferred financing costs related to the term loan of the secured credit facility | (803) | (876) | |
Secured credit facility, net of deferred financing costs | 309,197 | 219,124 | |
Total debt outstanding | 484,991 | 370,169 | |
Revolving Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Secured credit facility, principal amount outstanding | 210,000 | 120,000 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Secured credit facility, principal amount outstanding | 100,000 | 100,000 | |
Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | 76,000 | 51,000 | |
Variable Rate, Subject To Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | 101,990 | 71,540 | |
Secured credit facility, principal amount outstanding | 100,000 | 25,000 | |
Amount of variable rate debt fixed through interest rate swap during period | 30,450 | ||
Variable Rate, Subject To Interest Rate Swap [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Secured credit facility, principal amount outstanding | 75,000 | ||
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | 0 | [1] | 30,450 |
Secured credit facility, principal amount outstanding | $ 210,000 | $ 195,000 | |
[1] | During the three months ended March 31, 2017, the Company converted its $30,450,000 variable note payable into a variable rate note payable fixed through interest rate swap. |
Notes Payable and Secured Cre52
Notes Payable and Secured Credit Facility (Schedule of Future Principal Payments Due on Notes Payable and Secured Credit Facility) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
Nine months ending December 31, 2017 | $ 0 |
2,018 | 210,050 |
2,019 | 101,369 |
2,020 | 1,911 |
2,021 | 151,203 |
Thereafter | 23,457 |
Total | $ 487,990 |
Related-Party Transactions an53
Related-Party Transactions and Arrangements (Narrative) (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||||
Accounts payable due to affiliates | $ 8,672,000 | $ 8,672,000 | $ 7,384,000 | |
Asset management fees | $ 2,006,000 | $ 955,000 | ||
Cumulative, pretax, non-compounded annual return rate to investors | 6.00% | |||
Class I shares [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dealer manager fee funded by Advisor, as percentage of gross offering proceeds | 1.00% | |||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Estimated organization and offering costs reimbursement, as percentage of gross offering proceeds | 1.50% | |||
Offering costs incurred by Advisor on Company's behalf | 13,975,000 | $ 13,975,000 | ||
Acquisition fees incurred | $ 3,083,000 | 2,233,000 | ||
Maximum brokerage fees paid by Company, as percentage of contract sales price | 6.00% | |||
Disposition fees incurred | 0 | |||
Percentage of remaining net sales proceeds Advisor will receive after investors receive return | 15.00% | |||
Subordinated sale fees | 0 | |||
Listing fee, percentage | 15.00% | |||
Subordinated incentive listing fees | 0 | |||
Distribution percentage upon termination of Advisory agreement | 15.00% | |||
Subordinated termination fee | 0 | |||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Reimbursable organization and offering costs, as percentage of gross offering proceeds | 15.00% | |||
Disposition fee, as percentage of contract sales price | 1.00% | |||
Percentage of brokerage commission paid by Company for properties sold that required a substantial amount of services | 50.00% | |||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Offering Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable due to affiliates | $ 316,000 | $ 316,000 | $ 289,000 | |
Carter Validus Advisors II, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fee, as percentage of contract purchase price of each property or asset acquired | 2.00% | |||
Acquisition fee, as percentage of amount advanced on mortgage loan | 2.00% | |||
Estimated acquisition expense reimbursement, as percentage of purchase price of property and real estate-related investments | 0.75% | |||
Monthly asset management fee, as percentage of gross assets | 0.0625% | |||
Asset management fees | $ 2,006,000 | 955,000 | ||
Operating expenses allocated to the Company by the advisor | $ 365,000 | 278,000 | ||
Carter Validus Advisors II, LLC [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expense reimbursement, percentage of average invested assets | 2.00% | |||
Operating expense reimbursement, percentage of net income | 25.00% | |||
Carter Validus Real Estate Management Services II, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Property management and leasing fees, as percentage of gross revenues from properties managed | 3.00% | |||
Oversight fee, as percentage of gross revenues from properties managed | 1.00% | |||
Property management fees incurred | $ 671,000 | 298,000 | ||
Leasing commissions incurred | $ 23,000 | |||
Construction management fee, as percentage of project costs | 5.00% | |||
Construction management fees | $ 159,000 | |||
SC Distributors, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commissions and dealer manager fees | $ 4,945,000 | 8,004,000 | ||
Total underwriting compensation percentage that will terminate distribution fees, as percentage of gross proceeds from primary portion of offering | 10.00% | |||
Distribution and servicing fees incurred | $ 1,649,000 | $ 22,000 | ||
SC Distributors, LLC [Member] | Class A shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commission, as percentage of gross offering proceeds | 7.00% | |||
SC Distributors, LLC [Member] | Class T shares [Member] | ||||
Related Party Transaction [Line Items] | ||||
Daily distribution and servicing fee accrued, as percentage of purchase price per share | 0.00274% | |||
SC Distributors, LLC [Member] | Class T shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commission, as percentage of gross offering proceeds | 3.00% | |||
SC Distributors, LLC [Member] | Class A and T shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dealer manager fee, as percentage of gross offering proceeds | 3.00% | |||
SC Distributors, LLC [Member] | Class I shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dealer manager fee, as percentage of gross offering proceeds | 2.00% |
Related-Party Transactions an54
Related-Party Transactions and Arrangements (Schedule of Accounts Payable Due to Affiliates) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | $ 8,672 | $ 7,384 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Asset Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 727 | 627 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | General And Administrative Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 168 | 138 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Offering Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 316 | 289 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Acquisition Expenses and Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 1 | 5 |
Carter Validus Real Estate Management Services II, LLC [Member] | Property Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 325 | 252 |
Carter Validus Real Estate Management Services II, LLC [Member] | Construction Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 52 | 323 |
SC Distributors, LLC [Member] | Distribution and Servicing Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | $ 7,083 | $ 5,750 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable business segments | segment | 2 | |
Revenues | $ 24,022,000 | $ 11,424,000 |
Intersegment Elimination [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 0 | $ 0 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Information for Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Rental expenses | $ (4,926) | $ (1,684) |
Income from operations | 8,555 | 2,489 |
General and administrative expenses | (925) | (765) |
Acquisition related expenses | 0 | (1,665) |
Asset management fees | (2,006) | (955) |
Depreciation and amortization | (7,610) | (3,866) |
Interest expense, net | (3,764) | (879) |
Net income attributable to common stockholders | 4,791 | 1,610 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Rental and tenant reimbursement revenue | 24,022 | 11,424 |
Rental expenses | (4,926) | (1,684) |
Income from operations | 19,096 | 9,740 |
Operating Segments [Member] | Data Centers [Member] | ||
Segment Reporting Information [Line Items] | ||
Rental and tenant reimbursement revenue | 9,704 | 1,537 |
Rental expenses | (2,660) | (254) |
Income from operations | 7,044 | 1,283 |
Operating Segments [Member] | Healthcare [Member] | ||
Segment Reporting Information [Line Items] | ||
Rental and tenant reimbursement revenue | 14,318 | 9,887 |
Rental expenses | (2,266) | (1,430) |
Income from operations | $ 12,052 | $ 8,457 |
Segment Reporting (Schedule o57
Segment Reporting (Schedule of Assets by Reportable Segments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets by segment [Line Items] | ||
Total assets | $ 1,247,579 | $ 1,070,038 |
Operating Segments [Member] | Data Centers [Member] | ||
Assets by segment [Line Items] | ||
Total assets | 439,523 | 362,969 |
Operating Segments [Member] | Healthcare [Member] | ||
Assets by segment [Line Items] | ||
Total assets | 740,544 | 653,416 |
All Other [Member] | ||
Assets by segment [Line Items] | ||
Total assets | $ 67,512 | $ 53,653 |
Segment Reporting (Schedule o58
Segment Reporting (Schedule of Capital Additions and Acquisitions by Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Capital additions and acquisitions by segment [Line Items] | ||
Total capital additions and acquisitions | $ 165,027 | $ 85,650 |
Operating Segments [Member] | Data Centers [Member] | ||
Capital additions and acquisitions by segment [Line Items] | ||
Total capital additions and acquisitions | 75,088 | 44,161 |
Operating Segments [Member] | Healthcare [Member] | ||
Capital additions and acquisitions by segment [Line Items] | ||
Total capital additions and acquisitions | $ 89,939 | $ 41,489 |
Future Minimum Rent (Schedule o
Future Minimum Rent (Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Leases [Abstract] | |
Nine months ending December 31, 2017 | $ 59,889 |
2,018 | 81,199 |
2,019 | 81,147 |
2,020 | 80,727 |
2,021 | 82,181 |
Thereafter | 752,018 |
Total | $ 1,137,161 |
Future Minimum Rent (Schedule60
Future Minimum Rent (Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Leases [Abstract] | |
Nine months ending December 31, 2017 | $ 6 |
2,018 | 8 |
2,019 | 8 |
2,020 | 8 |
2,021 | 8 |
Thereafter | 781 |
Total | $ 819 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value [Line Items] | |||
Notes payable, principal amount outstanding | $ 177,990 | $ 152,990 | |
Secured credit facility, principal amount outstanding | 310,000 | 220,000 | |
Fixed Rate [Member] | |||
Fair Value [Line Items] | |||
Notes payable, principal amount outstanding | 76,000 | 51,000 | |
Variable Rate, Subject To Interest Rate Swap [Member] | |||
Fair Value [Line Items] | |||
Notes payable, principal amount outstanding | 101,990 | 71,540 | |
Secured credit facility, principal amount outstanding | 100,000 | 25,000 | |
Variable Rate [Member] | |||
Fair Value [Line Items] | |||
Notes payable, principal amount outstanding | 0 | [1] | 30,450 |
Secured credit facility, principal amount outstanding | 210,000 | 195,000 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Rate [Member] | |||
Fair Value [Line Items] | |||
Notes payable, fair value disclosure | 73,911 | 49,930 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Variable Rate, Subject To Interest Rate Swap [Member] | |||
Fair Value [Line Items] | |||
Notes payable, fair value disclosure | 98,747 | 69,247 | |
Secured credit facility, fair value disclosure | $ 98,004 | $ 24,195 | |
[1] | During the three months ended March 31, 2017, the Company converted its $30,450,000 variable note payable into a variable rate note payable fixed through interest rate swap. |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Derivative assets | $ 2,258 | $ 1,782 |
Liabilities: | ||
Derivative liability | 514 | 798 |
Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 2,258 | 1,782 |
Total assets at fair value | 2,258 | 1,782 |
Liabilities: | ||
Derivative liability | 514 | 798 |
Total liabilities at fair value | 514 | 798 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 2,258 | 1,782 |
Total assets at fair value | 2,258 | 1,782 |
Liabilities: | ||
Derivative liability | 514 | 798 |
Total liabilities at fair value | 514 | 798 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($)instrument | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Income (loss) recognized due to ineffectiveness of hedges of interest rate risk | $ (8) | $ 0 |
Additional amount expected to be reclassified from AOCI into earnings during next twelve months | 730 | |
Number of derivative instruments | instrument | 0 | |
Fair value of derivatives in a net liability position | $ 607 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 2,258 | $ 1,782 |
Fair Value of (Liability) | (514) | (798) |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional Amount | $ 201,990 | 96,540 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Effective Date | Jul. 1, 2016 | |
Maturity Date | Dec. 22, 2020 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Effective Date | Feb. 1, 2017 | |
Maturity Date | Dec. 26, 2021 | |
Other Assets, Net [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 2,258 | 1,782 |
Accounts Payable and Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of (Liability) | $ (514) | $ (798) |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities (Schedule of Income and Losses Recognized on Derivative Instruments) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Income Recognized in OCI on Derivative (Effective Portion) | $ 413 |
Amount of (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion) | (355) |
Interest Rate Swap [Member] | Interest Expense, Net [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Income Recognized in OCI on Derivative (Effective Portion) | 413 |
Amount of (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion) | $ (355) |
Derivative Instruments and He66
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 2,258 | $ 1,782 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 2,258 | 1,782 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | 0 |
Net Amount | $ 2,258 | $ 1,782 |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 514 | $ 798 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 514 | 798 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | 0 |
Net Amount | $ 514 | $ 798 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Narrative) (Details) | Mar. 31, 2016instrument |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Number of derivative instruments | 0 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Schedule of Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 668,426 | |
Other comprehensive income attributable to common stockholders | 768 | $ 0 |
Ending Balance | 727,194 | |
Unrealized Income on Derivative Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 840 | |
Other comprehensive income before reclassification | 413 | |
Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) | 355 | |
Other comprehensive income attributable to common stockholders | 768 | |
Ending Balance | 1,608 | |
Accumulated Other Comprehensive Income [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 840 | |
Other comprehensive income before reclassification | 413 | |
Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) | 355 | |
Other comprehensive income attributable to common stockholders | 768 | |
Ending Balance | $ 1,608 |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense, net | $ 3,764 | $ 879 |
Interest Rate Swap [Member] | Unrealized Income on Derivative Instruments [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income to Net Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense, net | $ 355 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 31, 2017case |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending legal proceedings to which the Company is a party | 0 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | May 09, 2017 | May 04, 2017 | May 01, 2017 | Apr. 03, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | May 29, 2014 |
Subsequent Event [Line Items] | ||||||||
Distributions paid in cash | $ 5,977,000 | $ 3,359,000 | ||||||
Common stock issued through distribution reinvestment plan | $ 7,001,000 | $ 4,626,000 | ||||||
Distributions declared per common share | $ 0.16 | $ 0.16 | ||||||
Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, value | $ 2,250,000,000 | |||||||
Common stock offering pursuant to DRIP, value | $ 100,000,000 | |||||||
Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock issued through distribution reinvestment plan | $ 7,000 | |||||||
Common Class A, I and T shares [Member] | Common Stock [Member] | Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, shares issued | 91,026,000 | |||||||
Common stock offering, gross proceeds raised | $ 896,207,000 | |||||||
Common stock offering, value remaining | $ 1,453,793,000 | $ 1,453,793,000 | ||||||
Subsequent Event [Member] | Carter Validus Real Estate Management Services II, LLC [Member] | Management Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Term of agreement from effective date | 1 year | |||||||
Effective date of agreement | May 19, 2017 | |||||||
Subsequent Event [Member] | Carter Validus Advisors II, LLC [Member] | Advisory Agreement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Term of agreement from effective date | 1 year | |||||||
Effective date of agreement | Jun. 10, 2017 | |||||||
Subsequent Event [Member] | Follow-On Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, shares issued | 0 | |||||||
Common stock offering, value | $ 332,500,000 | |||||||
Common stock offering pursuant to DRIP, value | $ 17,500,000 | |||||||
Extension of initial public offering, description | the Company extended the Offering until the earlier of (i) the effective date of the registration statement for the proposed follow-on public offering, (ii) November 25, 2017, that date that is 180 days after the third anniversary of the effective date of the Offering, or (iii) the date the maximum offering amount under the Offering is sold | |||||||
Subsequent Event [Member] | Class A shares [Member] | Common Stock [Member] | Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, shares issued | 75,526,000 | |||||||
Common stock offering, gross proceeds raised | $ 748,305,000 | |||||||
Subsequent Event [Member] | Class I shares [Member] | Common Stock [Member] | Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, shares issued | 532,000 | |||||||
Common stock offering, gross proceeds raised | $ 4,858,000 | |||||||
Subsequent Event [Member] | Class T shares [Member] | Common Stock [Member] | Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, shares issued | 18,676,000 | |||||||
Common stock offering, gross proceeds raised | $ 178,771,000 | |||||||
Subsequent Event [Member] | Common Class A, I and T shares [Member] | Common Stock [Member] | Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock offering, value remaining | $ 1,418,066,000 | |||||||
Subsequent Event [Member] | March 1, 2017 To March 31, 2017 [Member] | Class A shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate distributions paid | $ 3,974,000 | |||||||
Distributions paid in cash | 1,927,000 | |||||||
Common stock issued through distribution reinvestment plan | 2,047,000 | |||||||
Subsequent Event [Member] | March 1, 2017 To March 31, 2017 [Member] | Class I shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate distributions paid | 1,000 | |||||||
Distributions paid in cash | 400 | |||||||
Common stock issued through distribution reinvestment plan | 600 | |||||||
Subsequent Event [Member] | March 1, 2017 To March 31, 2017 [Member] | Class T shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate distributions paid | 762,000 | |||||||
Distributions paid in cash | 308,000 | |||||||
Common stock issued through distribution reinvestment plan | $ 454,000 | |||||||
Subsequent Event [Member] | April 1, 2017 To April 30, 2017 [Member] | Class A shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate distributions paid | $ 3,913,000 | |||||||
Distributions paid in cash | 1,898,000 | |||||||
Common stock issued through distribution reinvestment plan | 2,015,000 | |||||||
Subsequent Event [Member] | April 1, 2017 To April 30, 2017 [Member] | Class I shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate distributions paid | 9,000 | |||||||
Distributions paid in cash | 3,000 | |||||||
Common stock issued through distribution reinvestment plan | 6,000 | |||||||
Subsequent Event [Member] | April 1, 2017 To April 30, 2017 [Member] | Class T shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate distributions paid | 797,000 | |||||||
Distributions paid in cash | 324,000 | |||||||
Common stock issued through distribution reinvestment plan | $ 473,000 | |||||||
Subsequent Event [Member] | June 1, 2017 To August 31, 2017 [Member] | Class A shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of days, distribution calculation | 365 days | |||||||
Distributions declared per common share | $ 0.001767101 | |||||||
Annualized distribution rate | 6.40% | |||||||
Common stock offering, price per share (in dollars per share) | $ 10.078 | |||||||
Subsequent Event [Member] | June 1, 2017 To August 31, 2017 [Member] | Class I shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of days, distribution calculation | 365 days | |||||||
Distributions declared per common share | $ 0.001767101 | |||||||
Annualized distribution rate | 7.04% | |||||||
Common stock offering, price per share (in dollars per share) | $ 9.162 | |||||||
Subsequent Event [Member] | June 1, 2017 To August 31, 2017 [Member] | Class T shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of days, distribution calculation | 365 days | |||||||
Distributions declared per common share | $ 0.001501543 | |||||||
Annualized distribution rate | 5.68% | |||||||
Common stock offering, price per share (in dollars per share) | $ 9.649 |
Subsequent Events (Schedule of
Subsequent Events (Schedule of Subsequent Events) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
May 12, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Subsequent Event [Line Items] | |||
Principal Amount | $ 25,000,000 | $ 0 | |
Subsequent Event [Member] | Norwalk Data Center [Member] | |||
Subsequent Event [Line Items] | |||
Principal Amount | $ 34,200,000 | ||
Maturity Date | Apr. 19, 2022 | ||
Interest Rate, Variable Rate Basis | LIBOR | ||
Interest Rate, Basis Spread on Variable Rate | 2.50% | ||
Subsequent Event [Member] | Texas Rehabilitation Hospital Portfolio [Member] | |||
Subsequent Event [Line Items] | |||
Principal Amount | $ 39,900,000 | ||
Maturity Date | Apr. 20, 2022 | ||
Interest Rate, Variable Rate Basis | LIBOR | ||
Interest Rate, Basis Spread on Variable Rate | 2.875% |