Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | Physicians Realty L.P. | ||
Entity Central Index Key | 1,583,994 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2014 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 3,640,900 | ||
Document Fiscal Year Focus | 2,014 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2014 | Dec. 31, 2013 |
Investment properties: | ||
Land and improvements | $ 79,334 | $ 26,088 |
Building and improvements | 644,086 | 193,184 |
Tenant improvements | 5,614 | 5,458 |
Acquired lease intangibles | 72,985 | 31,236 |
Gross real estate property | 802,019 | 255,966 |
Accumulated depreciation | (45,569) | (28,427) |
Net real estate property | 756,450 | 227,539 |
Real estate loans receivable | 15,876 | |
Investment in unconsolidated entity | 1,324 | |
Net real estate investments | 773,650 | 227,539 |
Cash and cash equivalents | 15,923 | 56,478 |
Tenant receivables, net | 1,324 | 837 |
Other assets | 15,806 | 5,901 |
Total assets | 806,703 | 290,755 |
Liabilities: | ||
Credit facility | 134,144 | |
Mortgage debt | 77,091 | 40,716 |
Accounts payable | 700 | 836 |
Dividends Payable | 16,548 | 5,681 |
Accrued expenses and other liabilities | 6,140 | 2,685 |
Acquired lease intangibles, net | 2,871 | |
Total liabilities | 237,494 | 49,918 |
Partners' capital: | ||
General partner's capital, 50,640,863 and 21,548,597 units issued and outstanding as of December 31, 2014 and 2013, respectively | 534,730 | 204,904 |
Limited partners' capital, 3,190,339 and 3,698,877 units issued and outstanding as of December 31, 2014 and 2013, respectively. | 33,727 | 35,310 |
Total partners' capital | 568,457 | 240,214 |
Noncontrolling interests - partially owned properties | 752 | 623 |
Total capital | 569,209 | 240,837 |
Total liabilities and capital | $ 806,703 | $ 290,755 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
General partners' capital, units issued | 50,640,863 | 21,548,597 |
General partners' capital, units outstanding | 50,640,863 | 21,548,597 |
Limited partners' capital, units issued | 3,190,339 | 3,698,877 |
Limited partners' capital, units outstanding | 3,190,339 | 3,698,877 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | |||
Rental revenues | $ 46,397 | $ 13,565 | |
Expense recoveries | 5,871 | 3,234 | |
Interest income on real estate loans and other | 1,066 | 246 | |
Total revenues | 53,334 | 17,045 | |
Expenses: | |||
Interest expense | 6,907 | 4,295 | |
General and administrative | 11,440 | 3,214 | |
Operating expenses | 10,154 | 4,650 | |
Depreciation and amortization | 16,731 | 5,107 | |
Acquisition expenses | 10,897 | 1,938 | |
Management fees | 475 | ||
Impairment loss | 1,750 | 0 | |
Total expenses | 57,879 | 19,679 | |
Loss before equity in income of unconsolidated entity, gain(loss) on sale of investment properties, discontinued operations, and noncontrolling interests | (4,545) | (2,634) | |
Equity in income of unconsolidated entity | 95 | ||
Gain (loss) on sale of investment properties | 32 | (2) | |
Loss from continuing operations | (4,418) | (2,636) | |
Discontinued operations: | |||
Net loss | (4,418) | (2,636) | |
Less: Net loss attributable to Predecessor | 0 | 576 | |
Less: Net income attributable to noncontrolling interests - partially owned properties | (314) | (71) | |
Net loss attributable to common shareholders | $ (4,732) | $ (2,131) | |
Net loss per share: | |||
Basic and diluted (in dollars per share) | $ (0.12) | $ (0.13) | |
Weighted average common shares: | |||
Weighted average common shares outstanding - Basic and diluted | 36,881,712 | 16,179,492 | |
Dividends/distributions declared per common share and unit (in dollars per share) | $ 0.90 | $ 0.41 | |
Predecessor | |||
Revenues: | |||
Rental revenues | $ 9,821 | ||
Expense recoveries | 3,111 | ||
Interest income on real estate loans and other | 137 | ||
Total revenues | 13,069 | ||
Expenses: | |||
Interest expense | 4,538 | ||
General and administrative | 362 | ||
Operating expenses | 4,758 | ||
Depreciation and amortization | 4,150 | ||
Management fees | 951 | ||
Impairment loss | 937 | ||
Total expenses | 15,696 | ||
Loss before equity in income of unconsolidated entity, gain(loss) on sale of investment properties, discontinued operations, and noncontrolling interests | (2,627) | ||
Gain (loss) on sale of investment properties | (228) | ||
Loss from continuing operations | (2,855) | ||
Discontinued operations: | |||
Loss from operations on discontinued investment properties | (198) | ||
Gain on sale of discontinued investment properties | 1,519 | ||
Income from discontinued operations | 1,321 | ||
Net loss | $ (1,534) |
Consolidated and Combined Stat5
Consolidated and Combined Statement of Changes in Capital - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Jul. 23, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Change in predecessor equity | |||||||||
Balance | $ 240,837 | $ 240,837 | |||||||
Net (loss) income | $ 1,991 | (3,558) | $ (638) | $ (301) | $ (2,060) | (4,418) | $ (2,636) | ||
OP Units - distributions | (8,335) | (42,313) | |||||||
Net proceeds from sale of Trust common shares and issuance of common units | 225,920 | 350,385 | |||||||
Formation transactions | (354) | ||||||||
Restricted share award grants, net | 433 | 2,060 | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 0 | 0 | |||||||
Issuance of common shares in connection with the Ziegler shared service amendment payment | 1,800 | ||||||||
Purchase of OP units | (7,546) | ||||||||
Contributions | 7,387 | ||||||||
Conversion of OP units | 0 | ||||||||
Issuance of OP Units in connection with acquisitions | 28,589 | ||||||||
Distributions | (255) | (185) | |||||||
Balance | 569,209 | 240,837 | 240,837 | 569,209 | 240,837 | ||||
Predecessor Equity | |||||||||
Change in predecessor equity | |||||||||
Balance | 0 | 0 | |||||||
Formation transactions | (18,181) | ||||||||
Balance | 0 | 0 | 0 | ||||||
General Partner | |||||||||
Change in predecessor equity | |||||||||
Balance | 204,904 | 204,904 | |||||||
Net (loss) income | (1,661) | (4,037) | |||||||
OP Units - distributions | (7,009) | (39,048) | |||||||
Net proceeds from sale of Trust common shares and issuance of common units | 225,920 | 350,385 | |||||||
Formation transactions | 35 | ||||||||
Restricted share award grants, net | 433 | 2,060 | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | (7,391) | 5,380 | |||||||
Issuance of common shares in connection with the Ziegler shared service amendment payment | 1,800 | ||||||||
Contributions | (5,423) | ||||||||
Conversion of OP units | 13,286 | ||||||||
Balance | 534,730 | 204,904 | 204,904 | 534,730 | 204,904 | ||||
Limited Partner | |||||||||
Change in predecessor equity | |||||||||
Balance | 35,310 | 35,310 | |||||||
Net (loss) income | (470) | (695) | |||||||
OP Units - distributions | (1,326) | (3,265) | |||||||
Formation transactions | 18,181 | ||||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 7,391 | (5,380) | |||||||
Purchase of OP units | (7,546) | ||||||||
Contributions | 11,534 | ||||||||
Conversion of OP units | (13,286) | ||||||||
Issuance of OP Units in connection with acquisitions | 28,589 | ||||||||
Balance | 33,727 | 35,310 | 35,310 | 33,727 | 35,310 | ||||
Total Partners' Capital | |||||||||
Change in predecessor equity | |||||||||
Balance | 240,214 | 240,214 | |||||||
Net (loss) income | (2,131) | (4,732) | |||||||
OP Units - distributions | (8,335) | (42,313) | |||||||
Net proceeds from sale of Trust common shares and issuance of common units | 225,920 | 350,385 | |||||||
Formation transactions | 35 | ||||||||
Restricted share award grants, net | 433 | 2,060 | |||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 0 | 0 | |||||||
Issuance of common shares in connection with the Ziegler shared service amendment payment | 1,800 | ||||||||
Purchase of OP units | (7,546) | ||||||||
Contributions | 6,111 | ||||||||
Conversion of OP units | 0 | ||||||||
Issuance of OP Units in connection with acquisitions | 28,589 | ||||||||
Balance | 568,457 | 240,214 | 240,214 | 568,457 | 240,214 | ||||
Partially Owned Properties Noncontrolling Interest | |||||||||
Change in predecessor equity | |||||||||
Balance | $ 623 | 623 | |||||||
Net (loss) income | 71 | 314 | |||||||
OP Units - distributions | 0 | 0 | |||||||
Formation transactions | (389) | ||||||||
Adjustment for Noncontrolling Interests ownership in Operating Partnership | 0 | 0 | |||||||
Purchase of OP units | 0 | ||||||||
Contributions | 1,276 | ||||||||
Conversion of OP units | 0 | ||||||||
Issuance of OP Units in connection with acquisitions | 0 | ||||||||
Distributions | (255) | (185) | |||||||
Balance | $ 752 | $ 623 | 623 | $ 752 | 623 | ||||
Predecessor | |||||||||
Change in predecessor equity | |||||||||
Balance | 19,097 | 18,101 | $ 19,097 | 19,097 | $ 22,615 | ||||
Net (loss) income | (576) | (1,534) | |||||||
Transfer | 0 | 0 | |||||||
OP Units - distributions | (420) | (1,984) | |||||||
Balance | 18,101 | 19,097 | |||||||
Predecessor | Predecessor Equity | |||||||||
Change in predecessor equity | |||||||||
Balance | 19,068 | 18,181 | 19,068 | 19,068 | 22,503 | ||||
Net (loss) income | (712) | (1,659) | |||||||
Transfer | 36 | (105) | |||||||
OP Units - distributions | (211) | (1,671) | |||||||
Balance | 18,181 | 19,068 | |||||||
Predecessor | General Partner | |||||||||
Change in predecessor equity | |||||||||
Balance | 0 | 18,181 | 0 | 0 | 0 | ||||
Net (loss) income | 0 | 0 | |||||||
Transfer | 0 | 0 | |||||||
OP Units - distributions | 0 | 0 | |||||||
Balance | 0 | 0 | |||||||
Predecessor | Total Partners' Capital | |||||||||
Change in predecessor equity | |||||||||
Balance | 19,068 | (80) | 19,068 | 19,068 | 22,503 | ||||
Net (loss) income | (712) | (1,659) | |||||||
Transfer | 36 | (105) | |||||||
OP Units - distributions | (211) | (1,671) | |||||||
Balance | 18,181 | 19,068 | |||||||
Predecessor | Partially Owned Properties Noncontrolling Interest | |||||||||
Change in predecessor equity | |||||||||
Balance | $ 29 | $ (80) | 29 | $ 29 | 112 | ||||
Net (loss) income | 136 | 125 | |||||||
Transfer | (36) | 105 | |||||||
OP Units - distributions | (209) | (313) | |||||||
Balance | $ (80) | $ 29 |
Consolidated and Combined Stat6
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (4,418) | $ (2,636) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 16,731 | 5,107 | |
Amortization of deferred financing costs | 1,097 | 510 | |
Amortization of lease inducements and above/below market lease intangibles | 571 | 141 | |
Straight-line rental revenue/expense | (4,366) | (675) | |
(Gain) loss on sale of investment properties | (32) | 2 | |
Equity in income of unconsolidated entity | (95) | ||
Distribution from unconsolidated entity | 71 | ||
Change in fair value of derivatives | (161) | (246) | |
Provision for bad debts | 9 | 30 | |
Non-cash share compensation | 2,422 | 433 | |
Ziegler shared service amendment payment | 1,800 | ||
Impairment on investment properties | 1,750 | 0 | |
Increase (Decrease) in Operating Capital [Abstract] | |||
Tenant receivables | (986) | (184) | |
Other assets | (3,518) | (1,074) | |
Accounts payable to related parties | (1,530) | ||
Accounts payable | (136) | 34 | |
Accrued expenses and other liabilities | 2,556 | 1,256 | |
Net cash provided by operating activities | 13,295 | 1,168 | |
Cash Flows from Investing Activities: | |||
Proceeds on sale of investment properties | 235 | 448 | |
Acquisition of investment properties, net | (501,127) | (125,728) | |
Capital expenditures on existing investment properties | (900) | ||
Real estate loan receivable | (15,386) | ||
Leasing commissions | (100) | (163) | |
Lease inducements | (1,532) | (1,000) | |
Net cash (used in) provided by investing activities | (518,810) | (126,443) | |
Cash Flows from Financing Activities: | |||
Net proceeds from sale of common shares | 350,384 | 225,920 | |
Formation transactions | (354) | ||
Proceeds from credit facility borrowings | 395,200 | 52,350 | |
Payment on credit facility borrowings | (257,200) | (52,350) | |
Proceeds from issuance of mortgage debt | 26,550 | 162 | |
Principal payments on mortgage debt | (6,549) | (41,832) | |
Debt issuance costs | (3,887) | (1,428) | |
Dividends paid - shareholders | (28,104) | (2,161) | |
Distributions to noncontrolling interest- Operating Partnership | (3,382) | (704) | |
Distributions to members and partners | 0 | ||
Distributions to noncontrolling interest - partially owned properties | (185) | (464) | |
Purchase of OP Units | (7,546) | ||
Common shares repurchased and retired | (321) | ||
Net cash provided by (used in) financing activities | 464,960 | 179,139 | |
Net (decrease) increase in cash and cash equivalents | (40,555) | 53,864 | |
Cash and cash equivalents, beginning of year | 56,478 | 2,614 | |
Cash and cash equivalents, end of period | 15,923 | 56,478 | $ 2,614 |
Supplemental disclosure of cash flow information - interest paid during the period | 5,606 | 3,942 | |
Supplemental disclosure of noncash activity - assumed debt | 15,283 | ||
Supplemental disclosure of noncash activity - issuance of OP units in connection with acquisitions | 28,589 | 11,535 | |
Supplemental disclosure of noncash activity - contingent consideration | $ 840 | ||
Predecessor | |||
Cash Flows from Operating Activities: | |||
Net loss | (1,534) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 4,150 | ||
Amortization of deferred financing costs | 268 | ||
Amortization of lease inducements and above/below market lease intangibles | 70 | ||
Straight-line rental revenue/expense | (100) | ||
(Gain) loss on sale of investment properties | (1,291) | ||
Change in fair value of derivatives | (122) | ||
Provision for bad debts | 320 | ||
Impairment on investment properties | 937 | ||
Increase (Decrease) in Operating Capital [Abstract] | |||
Tenant receivables | 33 | ||
Other assets | 379 | ||
Accounts payable to related parties | 255 | ||
Accounts payable | 204 | ||
Accrued expenses and other liabilities | (56) | ||
Net cash provided by operating activities | 3,513 | ||
Cash Flows from Investing Activities: | |||
Proceeds on sale of investment properties | 14,525 | ||
Capital expenditures on existing investment properties | (845) | ||
Leasing commissions | (153) | ||
Net cash (used in) provided by investing activities | 13,527 | ||
Cash Flows from Financing Activities: | |||
Proceeds from issuance of mortgage debt | 45 | ||
Principal payments on mortgage debt | (14,149) | ||
Debt issuance costs | (270) | ||
Distributions to members and partners | (1,671) | ||
Distributions to noncontrolling interest - partially owned properties | (313) | ||
Net cash provided by (used in) financing activities | (16,358) | ||
Net (decrease) increase in cash and cash equivalents | 682 | ||
Cash and cash equivalents, beginning of year | $ 2,614 | 1,932 | |
Cash and cash equivalents, end of period | 2,614 | ||
Supplemental disclosure of cash flow information - interest paid during the period | $ 5,126 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Physicians Realty Trust (the "Trust" or the "General Partner"), a Maryland real estate investment trust and general partner of Physicians Realty L.P. (the "Operating Partnership", the "OP", or the "Company"), a Delaware limited partnership, was organized on April 9, 2013 primarily to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2014, the Trust was authorized to issue up to 500,000,000 common shares of beneficial interest, par value $0.01 per share (“common shares”). The Trust filed a Registration Statement on Form S-11 with the Securities and Exchange Commission (the “Commission”) with respect to a proposed underwritten initial public offering (the “IPO”) and completed the IPO of its common shares and commenced operations on July 24, 2013. The Trust contributed the net proceeds from its IPO to the Operating Partnership, and is the sole general partner of the Operating Partnership. The Trust's operations are conducted through the Operating Partnership and wholly-owned and majority-owned subsidiaries of the Operating Partnership. Initial Public Offering and Formation Transactions Pursuant to the IPO, the Trust issued an aggregate of 11,753,597 common shares, including common shares issued upon exercise of the underwriters’ overallotment option, and received approximately $123.8 million of net proceeds (after deducting the underwriting discount and expenses of the IPO and the formation transactions payable by the Trust). The Trust contributed the net proceeds of the IPO to the Operating Partnership in exchange for 11,753,597 common units of partnership interest (“OP Units”) on July 24, 2013. Concurrently with the completion of the IPO, the Company acquired, through a series of contribution transactions, the entities that own the 19 properties that comprised the Company's initial properties from four healthcare real estate funds (the “Ziegler Funds”), as well as certain operating assets and liabilities, including the assumption of approximately $84.3 million of debt related to such properties. The Company determined that the Ziegler Funds constitute the Company's accounting predecessor (the “Predecessor”). The Predecessor, which is not a legal entity, is comprised of the four Ziegler Funds that owned directly or indirectly interests in entities that owned the initial 19 properties in the Company's portfolio. The combined historical data for the Predecessor is not necessarily indicative of the Company's future financial position or results of operations. In addition, at the completion of the IPO, the Trust entered into a shared services agreement with B.C. Ziegler & Company (“Ziegler”) pursuant to which Ziegler provides office space, IT support, accounting support and other services to the Trust and the Operating Partnership in exchange for an annual fee. To acquire the ownership interests in the entities that own the 19 properties included in the Company's initial properties, and certain other operating assets and liabilities, from the Ziegler Funds, the Operating Partnership issued to the Ziegler Funds an aggregate of 2,744,000 OP Units, having an aggregate value of approximately $31.6 million based on the price per share to the public in the IPO. These formation transactions were effected concurrently with the completion of the IPO. Upon closing of the IPO, the Trust owned a 79.6% interest in the Operating Partnership. The Operating Partnership used a portion of the IPO proceeds received from the Trust to purchase the 50% interest in the Arrowhead Commons property not owned by the Ziegler Funds for approximately $850,000 , after which the Operating Partnership became the 100% owner of the property, and to pay certain expenses related to debt assumptions and the Trust’s former senior secured revolving credit facility. The balance of the net proceeds was subsequently invested in healthcare properties. Because the IPO and the formation transactions were completed on July 24, 2013, the Company had no operations prior to that date. References in these notes to the consolidated and combined financial statements of Physicians Realty L.P. signify the Company for the period from July 24, 2013, the date of completion of the IPO and the formation transactions, and of the Predecessor for all prior periods. Follow-On Public Offerings On December 11, 2013, the Trust completed a public offering of 9,545,000 common shares, including 1,245,000 common shares issued upon exercise of the underwriters’ overallotment option, resulting in net proceeds to the Trust of approximately $103.1 million . The Trust contributed the net proceeds of this offering to the Operating Partnership in exchange for 9,545,000 OP Units, and the Operating Partnership used the net proceeds of the public offering to repay borrowings under the Trust’s former senior secured revolving credit facility and for general corporate and working capital purposes and funding acquisitions. On May 27, 2014, the Trust completed a public offering of 12,650,000 common shares, including 1,650,000 common shares issued upon exercise of the underwriters’ overallotment option, resulting in net proceeds to the Trust of approximately $149.9 million . The Trust contributed the net proceeds of this offering to the Operating Partnership in exchange for 12,650,000 OP Units, and the Operating Partnership used the net proceeds of the public offering to repay borrowings under the former senior secured revolving credit facility and for general corporate and working capital purposes and funding acquisitions. On August 19, 2014, the Trust’s Registration Statement on Form S-3 (File No. 333-197842) (the “Shelf Registration Statement”), filed with the Commission on August 4, 2014, was declared effective by the Commission. The Shelf Registration Statement covers the offering, from time to time, of various securities with an aggregate value of up to $900 million and the secondary offering of common shares by certain selling shareholders. On August 19, 2014, the Trust and the Operating Partnership entered into separate At Market Issuance Sales Agreements (the “Sales Agreements”) with each of MLV & Co. LLC, KeyBanc Capital Markets Inc., JMP Securities LLC, and RBC Capital Markets, LLC (the “Agents”), pursuant to which the Trust may issue and sell common shares having an aggregate offering price of up to $150 million , from time to time, through the Agents pursuant to the Shelf Registration Statement (the “ATM Program”). In accordance with the Sales Agreements, the Trust may offer and sell its common shares through any of the Agents, from time to time, by any method deemed to be an “at-the-market offering” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”), which includes sales made directly on the New York Stock Exchange (the “NYSE”), or other existing trading market, or sales made to or through a market maker. With the Trust’s express written consent, sales also may be made in negotiated transactions or any other method permitted by law. During 2014, the Trust sold 3,576,010 common shares pursuant to the ATM Program, at a weighted average price of $15.54 per share resulting in total proceeds of approximately $55.6 million , before $0.8 million in commissions and contributed proceeds to the OP for common units. On September 12, 2014, the Trust completed a public offering of 10,925,000 common shares, including 1,425,000 common shares issued upon exercise of the underwriters’ overallotment option, resulting in net proceeds to the Trust of approximately $145.7 million . The Trust contributed the net proceeds of this offering to the Operating Partnership in exchange for 10,925,000 OP Units, and the Operating Partnership used the net proceeds of the public offering to repay borrowings under the Trust’s former senior secured revolving credit facility and for general corporate and working capital purposes and funding acquisitions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation Property holding entities and other subsidiaries of which the Operating Partnership owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest are consolidated. All inter-company balances and transactions are eliminated in consolidation. For entities in which the OP owns less than 100% of the equity interest, the OP consolidates the property if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. For these entities, the OP records a non-controlling interest representing equity held by non-controlling interests. GAAP requires the OP to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). ASC 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The OP identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The OP consolidates investments in a VIE when it determines that the OP is the VIE’s primary beneficiary. The OP may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The OP performs this analysis on an ongoing basis. Noncontrolling Interests The OP presents the portion of any equity it does not own in entities that it controls (and thus consolidates) as noncontrolling interests and classifies such interests as a component of consolidated equity, separate from the OP’s total limited partners’ capital, on the consolidated balance sheets. In connection with the closing of the IPO, the Trust and the Operating Partnership completed related formation transactions pursuant to which the Operating Partnership acquired from the Ziegler Funds, the Ziegler Funds’ ownership interests in 19 medical office buildings located in ten states in exchange for an aggregate of 2,744,000 OP Units and the payment of approximately $36.9 million of debt related to such properties. In connection with the acquisition of a surgical center hospital in the New Orleans, Louisiana metropolitan area for approximately $37.5 million , on September 30, 2013, the Operating Partnership partially funded the purchase price by issuing 954,877 OP Units valued at approximately $11.5 million on the date of issuance. During the year ended December 31, 2014, the Operating Partnership partially funded five property acquisitions by issuing an aggregate of 2,042,313 OP Units valued at approximately $28.6 million on the date of issuance. The five acquisitions had a total purchase price of approximately $103.6 million . Limited partners' capital represents OP Units held by the Predecessor’s prior investors and other investors. As of December 31, 2014, the General Partner held a 94.1% interest in the Operating Partnership. Holders of OP Units may not transfer their units without the General Partners' prior written consent. Beginning on the first anniversary of the issuance of OP Units, OP Unit holders may tender their units for redemption by the Operating Partnership in exchange for cash equal to the market price of the Trust’s common shares at the time of redemption or, for unregistered common shares on a one -for-one basis. Such selection to pay cash or issue common shares to satisfy an OP Unit holder’s redemption request is solely within the control of the General Partner. Partially Owned Properties: The OP reflects noncontrolling interests in partially owned properties on the balance sheet for the portion of properties consolidated by the OP that are not wholly owned by the OP. The earnings or losses from those properties attributable to the noncontrolling interests are reflected as noncontrolling interests in partially owned properties in the consolidated and combined statement of operations. Distributions Declaration Date Record Date Payment Date Cash Distributions per OP Unit December 30, 2014 January 23, 2015 February 6, 2015 $ 0.225 September 26, 2014 October 17, 2014 October 30, 2014 $ 0.225 June 26, 2014 July 18, 2014 August 1, 2014 $ 0.225 March 27, 2014 April 11, 2014 April 25, 2014 $ 0.225 December 30, 2013 January 24, 2014 February 7, 2014 $ 0.225 September 30, 2013 October 18, 2013 November 1, 2013 $ 0.18 (1) (1) Prorated cash distribution of $0.18 per OP Unit for the quarterly period from July 19, 2013 (the date of the IPO) through September 30, 2013, which was equivalent to a full quarterly distribution of $0.225 per OP Unit. The distribution was paid on November 1, 2013 to OP Unit holders of record on October 18, 2013, with the exception of the OP Units issued in the acquisition of Crescent City Surgical Centre. Purchase of Investment Properties A property acquired not subject to an existing lease is treated as an asset acquisition and recorded at its purchase price, inclusive of acquisition costs, allocated between the acquired tangible assets and assumed liabilities based upon their relative fair values at the date of acquisition. A property acquired with an existing lease is accounted for as a business combination pursuant to the acquisition method in accordance with ASC Topic 805, Business Combinations (“ASC 805”), and assets acquired and liabilities assumed, including identified intangible assets and liabilities, are recorded at fair value. The determination of fair value involves the use of significant judgment and estimation. The OP makes estimates of the fair value of the tangible and intangible acquired assets and assumed liabilities using information obtained from multiple sources as a result of pre-acquisition due diligence and may include the assistance of a third party appraiser. The OP estimates the fair value of buildings acquired on an as-if-vacant basis and depreciates the building value over the estimated remaining life of the building. The OP determines the allocated value of other fixed assets, such as site improvements, based upon the replacement cost and depreciates such value over the assets’ estimated remaining useful lives as determined at the applicable acquisition date. The fair value of land is determined either by considering the sales prices of similar properties in recent transactions or based on internal analyses of recently acquired and existing comparable properties within the OP’s portfolio. In recognizing identified intangible assets and liabilities in connection with a business combination, the value of above-or-below market leases is estimated based on the present value (using an interest rate which reflected the risks associated with the leases acquired) of the difference between contractual amounts to be received pursuant to the leases and management’s estimate of market lease rates measured over a period equal to the estimated remaining term of the lease. The capitalized above-market or below-market lease intangibles are amortized as a reduction or addition to rental income over the estimated remaining term of the respective leases. In determining the value of in-place leases and tenant relationships, management considers current market conditions and costs to execute similar leases in arriving at an estimate of the carrying costs during the expected lease-up period from vacant to existing occupancy. In estimating carrying costs, management includes real estate taxes, insurance, other operating expenses, estimates of lost rental revenue during the expected lease-up periods, and costs to execute similar leases, including leasing commissions, tenant improvements, legal, and other related costs based on current market demand. The values assigned to in-place leases and tenant relationships are amortized over the estimated remaining term of the lease. The values assigned to all lease intangible assets and liabilities are amortized over the estimated remaining term of the lease. If a lease terminates prior to its scheduled expiration, all unamortized costs related to that lease are written off. The OP calculates the fair value of any long-term debt assumed by discounting the remaining contractual cash flows on each instrument at the current market rate for those borrowings, which the OP approximates based on the rate at which it would expect to incur on a replacement instrument on the date of acquisition, and recognize any fair value adjustments related to long-term debt as effective yield adjustments over the remaining term of the instrument. Based on these estimates, the OP recognizes the acquired assets and assumed liabilities at their estimated fair values, which are generally determined using Level 3 inputs, such as market rental rates, capitalization rates, discount rates, or other available market data. Initial valuations are subject to change until the information is finalized, no later than 12 months from the acquisition date. The OP expenses transaction costs associated with acquisitions accounted for as business combinations in the period incurred. Impairment of Intangible and Long-Lived Assets The OP periodically evaluates its long-lived assets, primarily consisting of investments in real estate, for impairment indicators or whenever events or changes in circumstances indicate that the recorded amount of an asset may not be fully recoverable. If indicators of impairment are present, the OP evaluates the carrying value of the related real estate properties in relation to the undiscounted expected future cash flows of the underlying operations. In performing this evaluation, management considers market conditions and current intentions with respect to holding or disposing of the real estate property. The OP adjusts the net book value of real estate properties to fair value if the sum of the expected future undiscounted cash flows, including sales proceeds, is less than book value. The OP recognizes an impairment loss at the time it makes any such determination. If the OP determines that an asset is impaired, the impairment to be recognized is measured as the amount by which the recorded amount of the asset exceeds its fair value. Fair value is typically determined using a discounted future cash flow analysis or other acceptable valuation techniques, which are based, in turn, upon Level 3 inputs, such as revenue and expense growth rates, capitalization rates, discount rates or other available market data. The OP recorded real estate impairment charges of $1.8 million and $0 for the years ended December 31, 2014 and 2013, respectively. The Predecessor recognized impairments totaling $0.9 million for the year ended December 31, 2012. Assets Held for Sale and Discontinued Operations The OP may sell properties from time to time for various reasons, including favorable market conditions. The OP classifies certain long-lived assets as held for sale once the criteria, as defined by GAAP, has been met. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value minus cost to sell and are no longer depreciated. In 2014, the FASB issued Accounting Standards Update 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-8”), which raises the threshold for disposals to qualify as discontinued operations. A discontinued operation is defined as: (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. ASU 2014-8 also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations in the Trust’s previously issued financial statements. The OP early adopted ASU 2014-8 for the quarter ended March 31, 2014. Such adoption has had no impact on the OP’s financial statements as no dispositions have occurred during the year ended December 31, 2014. Prior to the adoption of ASU 2014-8, the results of operations for assets meeting the definition of discontinued operations are reflected in the consolidated and combined statements of operations as discontinued operations for all periods presented. The OP allocates estimated interest expense to discontinued operations based on property values and either the weighted average interest rate of the OP or the property’s actual mortgage interest. Investments in Unconsolidated Entities The OP reports investments in unconsolidated entities over whose operating and financial policies it has the ability to exercise significant influence under the equity method of accounting. Under this method of accounting, the OP's share of the investee’s earnings or losses is included in its consolidated and combined statements of operations. The initial carrying value of investments in unconsolidated entities is based on the amount paid to purchase the equity interest. During 2014, the Operating Partnership completed the acquisition of a 40% limited liability company membership interest in Jeff-Orleans Medical Development Real Estate, L.L.C, the entity that owns and leases to us the land on which the Crescent City Surgical Centre is situated, for $1.3 million . Real Estate Loans Receivable Real estate loans receivable consists of a mezzanine loan and a term loan which are collateralized by an equity interest in a two medical office building developments. Interest income on the loans are recognized as earned based on the terms of the loans subject to evaluation of collectability risks and are included in the Operating Partnership's consolidated and combined statement of operations. On January 2, 2014, the OP completed a $6.9 million mezzanine loan to affiliates controlled by MedProperties Holdings, LLC, a Dallas, Texas based private investor in medical facilities (“MedProperties”). The mezzanine loan is secured by MedProperties’ ownership interest in two special purpose entities that own a surgical hospital located in San Antonio, Texas and an inpatient rehabilitation facility located in Scottsdale, Arizona. The mezzanine loan has a five year, interest-only term and bears interest at a rate of 9.0% per annum. As part of the consideration for providing the mezzanine loan, the OP has an option to acquire the property at a formula purchase price during year four of the mezzanine loan based on a fixed capitalization rate . On November 26, 2014, the OP made an $8.6 million term loan to fund the renovations and additions of two re-purposed buildings in Jacksonville, Florida. Upon completion of the expansion and renovations, the properties will be approximately 40,000 square feet in the aggregate. Upon completion of the construction of the buildings and them becoming fully occupied, the Trust has the option to purchase the buildings. The term loan bears interest at a rate of 9.0% . Cash and cash equivalents Cash and cash equivalents consist of cash on hand and short-term investments with maturities of three months or less from the date of purchase. The OP is subject to concentrations of credit risk as a result of its temporary cash investments. The OP places its temporary cash investments with high credit quality financial institutions in order to mitigate that risk. Escrow reserves The OP is required to maintain various escrow reserves on certain notes payable to cover future property taxes and insurance and tenant improvements costs as defined in each loan agreement. The total reserves as of December 31, 2014 and 2013 are $1.9 million and $1.6 million , respectively, which are included in other assets in the consolidated balance sheets. Deferred costs Deferred costs consist primarily of fees paid to obtain financing and costs associated with the origination of long-term lease on real estate properties. After the purchase of a property, lease commissions incurred to extend in-place leases or generate new lease are added to deferred lease costs. Deferred lease costs are amortized on a straight-line basis over the terms of their respective agreements. The OP amortizes deferred financing costs as a component of interest expense over the terms of the related borrowings using a method that approximates a level yield. Derivatives Derivatives consist of an interest rate swap and is recognized as a liability on the consolidated balance sheets and is measured at fair value. Any change in the fair value is recognized immediately in earnings unless the derivative qualified as a hedge. No derivatives have been designated as hedges. The OP is exposed to certain risks in the normal course of its business operations. One risk relating to the variability of interest on variable rate debt is managed through the use of derivatives. All derivative financial instruments are measured and reported in the consolidated balance sheets at fair value. The OP has elected not to apply hedge accounting to its derivative financial instruments and as such, any changes in the fair values of its derivatives are recognized immediately in earnings. Generally, the OP enters into swap relationships such that changes in the fair value or cash flows of items and transactions being hedged are expected to be offset by corresponding changes in the values of the derivatives. The OP holds one swap to pay fixed/receive variable interest rates with a total notional amount of $7.7 million and $7.9 million as of December 31, 2014 and 2013, respectively. The interest rate swap liability is reported in accrued expenses and other liabilities on the consolidated balance sheet, as of December 31, 2014 and 2013, the interest rate swap liability was $0.2 million and $0.4 million , respectively. Gains recognized on the interest rate swaps of $(0.2) million , $(0.2) million and $(0.1) million were included in interest income on real estate loans and other in the consolidated and combined statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. Tenant receivables, net Tenant accounts receivable are stated net of the applicable allowance. Rental payments under these contracts are primarily due monthly. The OP assesses the collectability of tenant receivables, including straight-line rent receivables, and defers recognition of revenue if collectability is not reasonably assured. The OP bases its assessment of the collectability of rent receivables on several factors, including, among other things, payment history, the financial strength of the tenant and current economic conditions. If management’s evaluation of these factors indicates it is probable that the OP will be unable to recover the full value of the receivable, the OP provides a reserve against the portion of the receivable that it estimates may not be recovered. At December 31, 2014 and 2013, the allowance for doubtful accounts was $0.1 million . Rental Revenue Rental revenue is recognized on a straight-line basis over the terms of the related leases when collectability is reasonably assured. Recognizing rental revenue on a straight-line basis for leases may result in recognizing revenue for amounts more or less than amounts currently due from tenants. Amounts recognized in excess of amounts currently due from tenants are included in other assets and were approximately $6.4 million and $2.0 million as of December 31, 2014 and 2013, respectively. If the OP determines that collectability of straight-line rents is not reasonably assured, the OP limits future recognition to amounts contractually owed and, where appropriate, establishes an allowance for estimated losses. Rental revenue is adjusted by amortization of lease inducements and above or below market rents on certain leases. Lease inducements and above or below market rents are amortized over the average remaining life of the lease. Expense Recoveries Expense recoveries relate to tenant reimbursement of real estate taxes, insurance and other operating expenses that are recognized as expense recovery revenue in the period the applicable expenses are incurred. The reimbursements are recorded at gross, as the OP is generally the primary obligor with respect to real estate taxes and purchasing goods and services from third-party suppliers and has discretion in selecting the supplier and bears the credit risk of tenant reimbursement. The OP has certain tenants with absolute net leases. Under these lease agreements, the tenant is responsible for operating and building expenses. For absolute net leases, the OP does not recognize expense recoveries. Income Taxes As a partnership, the Operating Partnership generally is not liable for federal income taxes. The income and loss from the operations of the Operating Partnership is included in the tax returns of its limited partners, including the Trust, who are responsible for reporting their allocable share of the partnership income and loss. Accordingly, no provision for income taxes has been made on the accompanying consolidated financial statements. Management Estimates The preparation of consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated and combined financial statements and the amounts of revenue and expenses reported in the period. Significant estimates are made for the fair value assessments with respect to purchase price allocations, impairment assessments, and the valuation of financial instruments. Actual results could differ from these estimates. Contingent Liability The OP records a liability for contingent consideration (included in accrued expenses and other liabilities on its consolidated balance sheets) at fair value as of the acquisition date and reassess the fair value at the end of each reporting period, with any changes being recognized in earnings. Increases or decreases in the fair value of contingent consideration can result from changes in discount periods, discount rates and probabilities that contingencies will be met. Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the previously reported consolidated financial position or consolidated and combined results of operations. Segment reporting Under the provision of Codification Topic 280, Segment Reporting , the OP has determined that it has one reportable segment with activities related to leasing and managing healthcare properties. New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers , which creates a new Topic Accounting Standards Codification (Topic 606). The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for interim or annual periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. Early adoption of this standard is not allowed. The OP is currently evaluating the impact the adoption of Topic 606 will have on its financial statements, if any. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, to address financial reporting considerations about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for interim periods within annual periods beginning after December 15, 2016. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions During 2014, the OP completed acquisitions of 61 healthcare properties located in 15 states for an aggregate purchase price of approximately $543.4 million as summarized below: Property(1) Location Acquisition Date Purchase Price (in thousands) Foundation San Antonio Surgical Hospital(2) San Antonio, TX February 19, 2014 $ 25,556 Eagles Landing Family Practice 4 MOBs(2) Atlanta, GA February 19, 2014 20,800 21 st Century Oncology 4 MOBs(3) Sarasota, FL February 26, 2014 17,486 Foundation San Antonio MOB(3) San Antonio, TX February 28, 2014 6,800 Peachtree Dunwoody MOB(3) Atlanta, GA February 28, 2014 36,726 LifeCare LTACH(2) Fort Worth, TX March 28, 2014 27,160 LifeCare LTACH(2) Pittsburgh, PA March 28, 2014 12,840 Pinnacle Health Cardiology Portfolio 2 MOBs (3) Carlisle & Wormleyburg, PA April 22, 2014 9,208 South Bend Orthopedic MOB (3) South Bend, IN April 30, 2014 14,900 Grenada Medical Complex MOB (3) Grenada, MS April 30,2014 7,100 Mississippi Sports Medicine and Orthopaedics Center MOB (2)(4) Jackson, MS May 23, 2014 16,700 Carmel Medical Pavilion MOB (3)(5) Carmel, IN May 28, 2014 4,664 Summit Urology MOB (2) Bloomington, IN June 30, 2014 4,783 Renaissance Center (3) Oshkosh, WI June 30, 2014 8,500 Presbyterian Medical Plaza MOB (3) Monroe, NC June 30, 2014 7,750 Landmark Medical Portfolio (Premier) 3 MOBs (2)(6) Bloomington, IN July 1, 2014 23,837 Carlisle II MOB (3) Carlisle, PA July 25, 2014 4,500 Surgical Institute of Monroe ASC (2) Monroe, MI July 28, 2014 6,000 The Oaks Medical Building MOB (3) Lady Lake, FL July 31, 2014 10,600 Baylor Surgicare ASC — Mansfield (3) Mansfield, TX September 2, 2014 8,500 Eye Center of Southern Indiana (2)(7) Bloomington, IN September 5, 2014 12,174 Wayne State Medical Center and MOB (2) Troy, MI September 10, 2014 46,500 El Paso Portfolio (specialty surgical hospital and 2 MOBs) (3)(8) El Paso, TX September 30, 2014 46,235 The Mark H. Zangmeister Center (3) Columbus, OH September 30, 2014 36,600 Berger Medical Center (3) Orient, OH September 30, 2014 6,785 Orthopedic One 2 MOBs (3) Columbus, OH Westerville, OH September 30, 2014 24,500 Pinnacle Health Portfolio 5 MOBs (3) Harrisburg, PA October 29, 2014 23,100 Columbus Regional Health Portfolio 12 MOBs (3) Columbus Regional Health Portfolio 1 MOB (3) Columbus, GA Phenix City, AL November 20, 2014 27,997 Middletown Medical 2 MOBs (2) Middletown, NY November 26. 2014 14,399 Carle Danville Clinic MOB(3) Danville, IL November 26, 2014 10,300 Napoleon Medical Building MOB (3) New Orleans, LA December 18, 2014 10,500 West Tennessee Bone & Joint 1 MOB 1 ASC (2) Jackson, TN December 30, 2014 9,936 Total $ 543,436 (1) “MOB” means medical office building, “LTACH” means long-term acute care hospital and “ASC” means ambulatory surgical center. (2) The Operating Partnership accounted for these acquisitions as asset acquisitions and capitalized $1.7 million of total acquisition costs to the basis of the properties. (3) The Operating Partnership accounted for these acquisitions as business combinations pursuant to the acquisition method and expensed total acquisition costs of $10.9 million . (4) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 147,659 OP Units valued at approximately $1.9 million in the aggregate on the date of issuance. (5) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 96,099 OP Units valued at approximately $1.2 million in the aggregate on the date of issuance. (6) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 576,040 OP Units valued at approximately $8.3 million in the aggregate on the date of issuance. (7) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 272,191 OP Units valued at approximately $4.0 million in the aggregate on the date of issuance. (8) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 950,324 OP Units valued at approximately $13.2 million in the aggregate on the date of issuance. For 2014, the OP recorded revenues and net income of $26.0 million and $3.7 million , respectively, from its 2014 acquisitions. The following table summarizes the preliminary purchase price allocations of the assets acquired and the liabilities assumed, which the OP determined using Level 2 and Level 3 inputs (in thousands): Land $ 53,687 Building and improvements 451,691 In-place lease intangibles 35,720 Above market in-place lease intangibles 5,270 Below market in-place lease intangibles (2,330 ) Above market in-place ground lease (701 ) Investment in unconsolidated entity 1,300 Issuance of OP units (28,589 ) Mortgage debt assumed (15,283 ) Lease inducement 1,532 Derivative liability assumed (197 ) Contingent consideration (840 ) Leasehold interest 759 Receivable 640 Net assets acquired $ 502,659 These preliminary allocations are subject to revision within the measurement period, not to exceed one year from the date of the acquisitions. Unaudited Pro Forma Financial Information Physicians Realty LP The following table illustrates the pro forma combined revenue, net income, and earnings per unit —basic and diluted as if Physicians Realty LP had acquired the above acquisitions as of January 1, 2013 (in thousands, except per share amounts): Year Ended December 31, 2014 2013 Revenue $ 81,507 $ 71,183 Net income 16,883 11,461 Net income available to common shareholders 16,883 11,461 Earnings per unit - basic and diluted $ 0.31 $ 0.21 Common units issued and outstanding 53,831,202 53,831,202 |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangibles | Intangibles The following is a summary of the carrying amount of intangible assets and liabilities as of 2014 and 2013 (in thousands): December 31, 2014 December 31, 2013 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Assets In-place leases $ 64,777 $ (12,213 ) $ 52,564 $ 29,056 $ (8,080 ) $ 20,976 Above market leases 7,449 (578 ) 6,871 2,180 (48 ) 2,132 Leasehold interest 759 (5 ) 754 — — — Total $ 72,985 $ (12,796 ) $ 60,189 $ 31,236 $ (8,128 ) $ 23,108 Liability Below market lease $ 2,330 $ (156 ) $ 2,174 — — — Above market ground lease 701 (4 ) 697 — — — Total $ 3,031 $ (160 ) $ 2,871 $ — $ — $ — The following is a summary of the acquired lease intangible amortization for the years ended December 31, 2014, 2013 and 2012 (in thousands): December 31, 2014 2013 2012 Amortization expense related to in-place leases $ 4,133 $ 1,252 $ 900 Decrease of rental income related to above-market leases 530 48 — Decrease of rental income related to leasehold interest 5 — — Increase of rental income related to below-market leases 156 — — Decrease of operating expense related to above market ground leases 4 — — Future aggregate net amortization of the acquired lease intangibles as of December 31, 2014, is as follows (in thousands): Net Decrease in Revenue Net Increase in Expenses 2015 $ (667 ) $ 7,446 2016 (689 ) 7,384 2017 (567 ) 7,165 2018 (560 ) 6,628 2019 (458 ) 4,625 Thereafter (2,511 ) 18,618 Total $ (5,452 ) $ 51,866 For the year ended December 31, 2014, the weighted average amortization period for asset lease intangibles and liability lease intangible is nine years and 17 years , respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2014 | |
Other Assets, Unclassified [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following as of December 31, 2014 and 2013 (in thousands): December 31, 2014 2013 Straight line rent receivable $ 6,431 $ 2,018 Lease inducements, net 2,845 1,509 Escrows 1,906 1,552 Earnest deposits 2,343 — Prepaid expenses and other 2,281 822 Total $ 15,806 $ 5,901 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of debt as of December 31, 2014 and 2013 (in thousands): December 31, 2014 2013 Mortgage notes, bearing fixed interest from 4.71% to 6.58%, with a weighted average interest rate of 5.26%, and due in 2016, 2017, 2018, 2019, 2021 and 2022 collateralized by nine properties with a net book value of $118,247 $ 73,706 $ 38,288 Mortgage note, bearing variable interest of LIBOR plus 2.75% and due in 2017, collateralized by one property with a net book value of $6,249 4,399 4,533 Total mortgage debt 78,105 42,821 $400 million unsecured revolving credit facility bearing variable interest of LIBOR plus 1.50%, due September 2018 138,000 — Total Debt $ 216,105 $ 42,821 Unamortized deferred financing cost (4,870 ) (2,105 ) Total debt $ 211,235 $ 40,716 Effective September 18, 2014, the Credit Agreement, dated as of August 29, 2013 (as amended, restated, increased, extended, supplemented or otherwise modified from time to time, the “Prior Credit Agreement”), among the Operating Partnership, as borrower, the Trust, certain subsidiaries and other affiliates of the Operating Partnership, as guarantors, Regions Bank, as administrative agent, Regions Capital Markets, as sole lead arranger and sole book runner, and the lenders party thereto, and all commitments provided thereunder, were terminated. All amounts due and outstanding under the Prior Credit Agreement were repaid on or prior to such date. On September 18, 2014, the Operating Partnership, as borrower, and the Trust and certain subsidiaries and other affiliates of the Trust, as guarantors, entered into a Credit Agreement with KeyBank National Association as administrative agent, KeyBanc Capital Markets Inc., Regions Capital Markets and BMO Capital Markets, as joint lead arrangers and joint bookrunners, Regions Capital Markets and BMO Capital Markets, as co-syndication agents, and the lenders party thereto in connection with an unsecured revolving credit facility in the maximum principal amount of $400 million (“Credit Agreement”). The Credit Agreement includes a swingline loan commitment for up to 10% of the maximum principal amount and provides an accordion feature allowing the OP to increase borrowing capacity by up to an additional $350 million , subject to customary terms and conditions, resulting in a maximum borrowing capacity of $750 million . The Credit Agreement replaced the OP’s senior secured revolving credit facility in the maximum principal amount of $200 million under the Prior Credit Agreement. The Credit Agreement has a maturity date of September 18, 2018 and includes a one year extension option. Borrowings under the Credit Agreement bear interest on the outstanding principal amount at a rate equal to LIBOR plus 1.50% to 2.20% depending on the OP’s consolidated leverage ratio. In addition, the Credit Agreement includes an unused fee equal to 0.15% or 0.25% per annum, which is determined by usage under the Credit Agreement. As of December 31, 2014, the weighted average interest rate on borrowings outstanding was 1.68% . The Credit Agreement contains financial covenants that, among other things, require compliance with leverage and coverage ratios and maintenance of minimum tangible net worth, as well as covenants that may limit the Operating Partnership’s ability to incur additional debt or make distributions. The OP may, at any time, voluntarily prepay any loan under the Credit Agreement in whole or in part without premium or penalty. As of December 31, 2014, the OP was in compliance with all financial covenants. The Credit Agreement includes customary representations and warranties by the Operating Partnership, the Trust and each other guarantor and imposes customary covenants on the Operating Partnership, the Trust and each other guarantor. The Credit Agreement also contains customary events of default, and if an event of default occurs and continues, the Operating Partnership is subject to certain actions by the administrative agent, including without limitation, the acceleration of repayment of all amounts outstanding under the Credit Agreement. The Credit Agreement provides for revolving credit loans to the Operating Partnership. Base Rate Loans, Adjusted LIBOR Rate Loans and Letters of Credit (each, as defined in the Credit Agreement) will be subject to interest rates, based upon the consolidated leverage ratio of the Operating Partnership and its subsidiaries as follows: Consolidated Leverage Ratio Adjusted LIBOR Rate Loans and Letter of Credit Fee Base Rate Loans < 35% LIBOR + 1.50% 0.50 % >35% and < 45% LIBOR + 1.65% 0.65 % >45% and <45% LIBOR + 1.75% 0.75 % >45% and < 50% LIBOR + 1.85% 0.85 % >50% and < 55% LIBOR + 2.00% 1.00 % >55% LIBOR + 2.20% 1.20 % As of December 31, 2014, there were $138 million of borrowings outstanding under the unsecured revolving credit facility and $189 million available for us to borrow without adding additional properties to the unencumbered borrowing base of assets, as defined by the Credit Agreement. Certain properties have mortgage debt that contains financial covenants. As of December 31, 2014, the OP was in compliance with all mortgage debt financial covenants. Scheduled principal payments due on debt as of December 31, 2014, are as follows (in thousands): 2015 $ 1,864 2016 9,421 2017 28,750 2018 139,100 2019 19,906 Thereafter 17,064 Total Payments $ 216,105 For the years ended December 31, 2014 and 2013, the OP incurred interest expense on its debt of $5.8 million and $3.9 million , respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Trust follows ASC 718, Compensation — Stock Compensation (“ASC 718”), in accounting for its share-based payments. This guidance requires measurement of the cost of employee services received in exchange for stock compensation based on the grant-date fair value of the employee stock awards. This cost is recognized as compensation expense ratably over the employee’s requisite service period. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized when incurred. Share-based payments classified as liability awards are marked to fair value at each reporting period. Any common shares issued by the Trust pursuant to any incentive equity compensation or employee share purchase plan of the Trust results in the OP issuing OP Units to the Trust on a one-for-one basis with the OP receiving the net cash proceeds of such issuances. Certain of the Trust's employee stock awards vest only upon the achievement of performance targets. ASC 718 requires recognition of compensation cost only when achievement of performance conditions is considered probable. Consequently, the Trust's determination of the amount of stock compensation expense requires a significant level of judgment in estimating the probability of achievement of these performance targets. Additionally, the Trust must make estimates regarding employee forfeitures in determining compensation expense. Subsequent changes in actual experience are monitored and estimates are updated as information is available. In connection with the IPO, the Trust adopted the 2013 Equity Incentive Plan (“2013 Plan”), which made available 600,000 common shares to be administered by the Compensation and Nominating Governance Committee of the Board of Trustees. On August 7, 2014, at the Annual Meeting of Shareholders of Physicians Realty Trust, the Trust’s shareholders approved an amendment to the 2013 Plan to increase the number of common shares authorized for issuance under the 2013 Plan by 1,850,000 common shares, for a total of 2,450,000 common shares authorized for issuance. The committee has broad discretion in administering the terms of the 2013 Plan. Restricted shares granted under the 2013 Plan are eligible for dividends as well as the right to vote. The Trust granted to management and the Board of Trustees 250,000 restricted common shares upon completion of the IPO under the Trust’s 2013 Plan at a value per share of $11.50 and total value of $2.9 million with a vesting period of three years. During 2014, a total of 152,987 restricted common shares with a total value of $2.1 million were granted to Trust employees and the Board of Trustees. A summary of the status of the Trust’s nonvested restricted common shares as of December 31, 2014 and changes during the year then ended follow: Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2013 250,000 $ 11.50 Granted 152,987 13.79 Vested (61,179 ) 11.50 Share repurchase (22,154 ) 14.49 Non-vested at December 31, 2014 319,654 $ 12.60 For all service awards, the OP records compensation expense for the entire award on a straight-line basis (or, if applicable, on the accelerated method) over the requisite service period. For the years ended December 31, 2014, and 2013, the OP recognized non-cash share compensation of $2.2 million , $0.4 million , respectively. Unrecognized compensation expense at December 31, 2014 and 2013 was $2.4 million and $2.5 million , respectively. The OP's compensation expense recorded in connection with grants of restricted stock reflects an initial estimated cumulative forfeiture rate of 0% over the requisite service period of the awards. That estimate will be revised if subsequent information indicates that the actual number of awards expected to vest is likely to differ from previous estimates. Restricted Share Units: In March 2014, under the Trust's 2013 Plan, the Trust granted 55,680 restricted share units at target level to management, which are subject to certain performance and market conditions and a three -year service period. In addition, each restricted share unit contains one dividend equivalent. The recipient will accrue dividend equivalents on awarded share units equal to the cash dividend that would have been paid on the awarded share unit had the awarded share unit been an issued and outstanding common share on the record date for the dividend. The market conditions were valued with the assistance of independent valuation specialists. The OP utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $19.25 per unit using the following assumptions: Volatility 18.8% - 34.2% Dividend assumption reinvested Expected term in years 2.83 Risk-free rate 0.65 % Stock price (per share) 13.47 With respect to the performance conditions, the grant date fair value of $13.47 per unit was calculated on the grant date. The restricted stock units’ combined weighted average grant date fair value is $16.94 per unit. The following is a summary of the activity in the Trust's restricted share units during 2014: Restricted Share Units Weighted Average Grant Date Fair Value Non-vested at December 31, 2013 — $ — Granted 55,680 16.94 Vested — — Forfeited — — Non-vested at December 31, 2014 55,680 $ 16.94 The OP recognized $0.3 million of non-cash share unit compensation expense for the year ended December 31, 2014. Unrecognized compensation expense at December 31, 2014 was $0.7 million . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement (“ASC 820”), requires certain assets and liabilities be reported and/or disclosed at fair value in the financial statements and provides a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the valuation techniques and inputs used to measure fair value. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the OP has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. These Level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset or liability. In instances where inputs used to measure fair value fall into different levels of the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. The derivative instrument consists solely of one interest rate swap that is not traded on an exchange and is recorded at fair value based on a variety of observable inputs including contractual terms, interest rate curves, yield curves, measure of volatility, and correlations of such inputs. The OP measures its interest rate swap at fair value on a recurring basis. The fair values are based on Level 2 inputs described above. The OP also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. The following table sets forth by level the fair value hierarchy of the OP’s assets that were accounted for on a non-recurring basis as of December 31, 2014. Non-recurring Fair Value Measurements At Report Date using: Carrying Value as of December 31, 2013 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses for Year Ended December 31, 2014 Investment properties $ 4,551 $ 1,529 $ — $ 1,272 $ (1,750 ) The following table summarizes the quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy as of December 31, 2014 (in thousands). Asset Category Fair Value at December 31, 2014 Valuation Technique Unobservable Inputs Rate Investment properties $ 1,272 Market comparable/ Discount rate 11.00 % Discounted cash flow Capitalization rate 8.00 % The carrying amounts of cash and cash equivalents, tenant receivables, payables, and accrued interest are reasonable estimates of fair value because of the short term maturities of these instruments. Fair values for real estate loans receivable and mortgage debt are estimated based on rates currently prevailing for similar instruments of similar maturities and are based on Level 2 inputs. The following table presents the fair value of the OP’s financial instruments (in thousands). December 31, 2014 December 31, 2013 Carrying Amount Fair Value Carrying Amount Fair Value Real estate loans receivable $ 15,876 $ 15,876 $ — $ — Credit facility $ (138,000 ) $ (138,000 ) — — Mortgage debt $ (78,105 ) $ (78,642 ) $ (42,821 ) $ (44,130 ) Derivative liabilities $ (233 ) $ (233 ) $ (397 ) $ (397 ) |
Tenant Operating Leases
Tenant Operating Leases | 12 Months Ended |
Dec. 31, 2014 | |
Tenant Operating Leases | |
Tenant Operating Leases | Tenant Operating Leases The Operating Partnership is lessor of medical office buildings and other healthcare facilities. Leases have expirations from 2015 through 2028. As of December 31, 2014, the future minimum rental payments on non-cancelable leases, exclusive of expense recoveries, were as follows (in thousands): 2015 $ 65,905 2016 65,323 2017 65,179 2018 62,637 2019 59,464 Thereafter 418,400 Total $ 736,908 |
Rent Expense
Rent Expense | 12 Months Ended |
Dec. 31, 2014 | |
Leases [Abstract] | |
Rent Expense | Rent Expense The Operating Partnership leases the rights to a parking structure at one of its properties and the land upon which seven of its properties are located from third party land owners pursuant to separate ground and parking leases. The parking and ground leases require fixed annual rental payments and may also include escalation clauses and renewal options. These leases have terms up to 67 years remaining, excluding extension options. As of December 31, 2014, the future minimum lease obligations under non-cancelable parking and ground leases were as follows (in thousands): 2015 $ 1,426 2016 1,442 2017 1,480 2018 1,521 2019 1,564 Thereafter 23,317 Total $ 30,750 Rent expense for the parking and ground leases of $0.9 million , $0.02 million and $0.02 million for the years ended December 31, 2014, 2013 and 2012, respectively, are reported in operating expenses in the consolidated and combined statements of operations. |
Earnings Per Unit
Earnings Per Unit | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit | Earnings Per Unit The following table shows the amounts used in computing the Operating Partnership's basic and diluted earnings per OP Unit (in thousands, except unit and per unit data): Year Ended December 31, 2014 2013 Numerator for earnings per unit — basic and diluted: Net loss $ (4,418 ) $ (2,636 ) Less: Net loss attributable to Predecessor — 576 Less: Net income attributable to noncontrolling interests — partially owned properties (314 ) (71 ) Numerator for earnings per unit — basic and diluted $ (4,732 ) $ (2,131 ) Denominator for earnings per unit - basic and diluted units: 36,881,712 16,179,492 Basic and diluted earnings per unit $ (0.12 ) $ (0.13 ) There were 375,334 and 250,000 restricted common shares and units outstanding related to the 2013 Plan during the years ended December 31, 2014 and 2013, respectively. However, these restricted common shares and units are not dilutive due to the net loss. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Trust and the OP entered into a shared services agreement with Ziegler pursuant to which Ziegler provides office space, IT support, accounting support and other services to the Operating Partnership in exchange for an annual fee. The shared service fee amounted to $0.4 million and $0.3 million for years ended December 31, 2014 and 2013, respectively, and is recorded in general and administrative expense in the consolidated and combined statements of operations. Ziegler charged the Predecessor an annual management fee equal to 2 percent of the total capital commitments. Total management fees charged to the Predecessor was $0.5 million and $1.0 million for the years ended December 31, 2013 and 2012, respectively. Total other fees charged to the Predecessor were $0.03 million for the year ended December 31, 2012. The other fees include fees for accounting expenses and other expenses owed to Ziegler. The Trust did not incur a management fee for the year ended December 31, 2014. The Trust and the Operating Partnership entered into the First Amendment to Shared Services Agreement, dated July 31, 2014 (the “First Amendment”), with Ziegler, which amended certain terms of the shared services agreement. Among other things, the First Amendment reduced the shared services to be provided by Ziegler, the term of the shared services agreement, and the monthly fee to be paid by the OP for the remainder of the term. In consideration of these changes, the OP was obligated to make a one-time payment to Ziegler in the amount of $1.8 million (the “Amendment Payment”), which could be paid in cash or in unrestricted common shares of the OP as determined by the Trust in its sole discretion. On August 19, 2014, the Trust made the Amendment Payment by issuing 124,913 common shares to Ziegler and the OP issued 124,913 units to the Trust. The $1.8 million one-time payment is included in general and administrative expense in the consolidated statement of operations for the year ended December 31, 2014. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The OP, through subsidiaries, closed on the below acquisitions: Property(1) Location Acquisition Date Purchase Price (in thousands) Edina MOB Edina, MN January 22, 2015 $ 14,190 Savage MOB Savage, MN January 22, 2015 12,800 Crystal MOB Crystal, MN January 22, 2015 14,782 Dell Rd MOB Chanhassen, MN January 22, 2015 6,410 Columbus MOB Columbus, GA January 23, 2015 6,540 Methodist Sports MOB (2) Greenwood, IN January 28, 2015 10,000 Vadnais Heights MOB Vadnais Heights, MN January 29, 2015 18,422 Minnetonka MOB (3) Minnetonka, MN February 5, 2015 26,000 Jamestown MOB Jamestown, ND February 5, 2015 12,819 Indianapolis South 4 MOBs Greenwood, IN February 13, 2015 17,183 Minnesota Eye MOB Minnetonka, MN February 17, 2015 10,882 Bridgeport Medical Center Lakewood, WA February 27, 2015 13,750 Baylor Cancer Center Dallas, TX February 27, 2015 8,200 $ 171,978 (1) “MOB” means medical office building. (2) The Operating Partnership partially funded the purchase price of this acquisition by issuing a total of 420,963 OP Units valued at approximately $7.3 million in the aggregate on the date of issuance. (3) The Operating Partnership partially funded the purchase price of this acquisition by issuing a total of 44,685 Series A Preferred Units valued at approximately $9.7 million in the aggregate on the date of issuance. On February 5, 2015, the OP entered into a Second Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”) which provides for the designation and issuance of the newly designated Series A Participating Redeemable Preferred Units of the operating partnership (“Series A Preferred Units”). The Series A Preferred Units will have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. In addition, the Series A Preferred Units will be redeemable at the option of the holders on or after the one year anniversary of their issuance, which redemption obligation may be satisfied, at the OP’s option, in cash or shares of the Trust's common stock. On January 21, 2015, the OP repaid the outstanding balance of $138.0 million on the unsecured revolving credit facility. On January 21, 2015, the Trust completed a follow-on public offering of 18,975,000 common shares of beneficial interest, including 2,475,000 common shares issued upon exercise of the underwriters’ overallotment option, resulting in net proceeds to it of approximately $297.2 million . The Trust contributed the net proceeds of this offering to the Operating Partnership in exchange for 18,975,000 OP Units, and the Operating Partnership used the net proceeds of the public offering to repay borrowings under its unsecured revolving credit facility and for general corporate and working capital purposes and funding acquisitions. During 2015, the Trust sold 247,397 common shares pursuant to the ATM Program, at a weighted average price of $16.96 per share resulting in total proceeds of approximately $4.2 million , before $55,696 in commissions. In connection with these shares, the Trust contributed the proceeds to the OP in exchange for 247,397 OP Units. As of the date of this prospectus supplement, the Trust has $90.2 million remaining available under the ATM Program. See “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Recent Developments” for a further discussion of these acquisitions. |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | Quarterly Data The following unaudited quarterly data has been prepared on the basis of a December 31 year-end. Amounts are in thousands, except for common units and per unit amounts. Quarter Ended 2014 March 31 June 30 September 30 December 31 Total revenues $ 8,032 $ 11,447 $ 14,161 $ 19,694 Operating (loss) income (3,575 ) (626 ) (2,311 ) 1,967 Net (loss) income (3,558 ) (600 ) (2,251 ) 1,991 Net (loss) income attributable to common unitholders (3,624 ) (684 ) (2,327 ) 1,903 Earnings per unit — basic: Net (loss) income available to common unitholder $ (0.15 ) $ (0.02 ) $ (0.06 ) $ 0.04 Weighted average common units outstanding 24,997,474 29,962,046 40,898,015 51,335,748 Earnings per unit — diluted: Net (loss) income available to common unitholder $ (0.15 ) $ (0.02 ) $ (0.06 ) $ 0.04 Weighted average common units outstanding 24,997,474 29,962,046 40,898,015 51,544,832 As a result of the acquisition activity and equity offerings throughout 2014, the quarterly periods are not comparable quarter over quarter. Quarter Ended 2013 March 31 (1) June 30 (1) September 30 December 31 Total revenues $ 3,390 $ 3,437 $ 3,729 $ 6,488 Operating loss (301 ) (283 ) (1,414 ) (638 ) Net loss (301 ) (283 ) (1,416 ) (638 ) Net loss available to common unitholder — — (1,483 ) (648 ) Earnings per unit — basic and diluted: Net income available to common unitsholder $ — $ — $ (0.10 ) $ (0.04 ) Weighted average common units outstanding — — 14,243,850 17,631,224 (1) Because the IPO and the formation transactions were completed on July 24, 2013, the OP had no operations prior to that date. References in these notes to the consolidated and combined financial statements of Physicians Realty L.P. signify the Company for the period from July 24, 2013, the date of completion of the IPO and the formation transactions, and of the Predecessor for all prior periods. |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2014 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | PHYSICIANS REALTY L.P. SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION Initial Cost to Company Gross Amount at Which Carried as of Close of Period Description Location Encumbrances Land Buildings and Improvements Cost Capitalized Subsequent to Acquisitions Land Buildings and Improvements Total Accumulated Depreciation Date of Construction Date Acquired Life on Which Building Depreciation in Income Statement is Computed Arrowhead Commons Phoenix, AZ — $ 740 $ 2,551 $ 1 $ 740 $ 2,552 $ 3,292 (366 ) 2004 5/31/2008 46 Aurora Medical Office Building Green Bay, WI — 500 1,566 — 500 1,566 2,066 (149 ) 2010 4/15/2010 50 Austell Medical Office Building Atlanta, GA — 289 1,992 313 289 2,305 2,594 (397 ) 1971 6/30/2008 36 Canton Medical Office Building Atlanta, GA 6,207 710 7,225 97 710 7,322 8,032 (1,851 ) 1994 5/25/2007 30 Decatur Medical Office Building Atlanta, GA — 740 2,604 45 740 2,649 3,389 (679 ) 1974 10/12/2007 28 El Paso Medical Office Building El Paso, TX — 860 2,866 357 860 3,223 4,083 (1,293 ) 1987 8/24/2006 21 Farmington Professional Pavillion Detroit, MI — 580 1,793 87 580 1,880 2,460 (1,081 ) 1972 1/5/2006 15 Firehouse Square Milwaukee, WI 2,765 1,120 2,768 — 1,120 2,768 3,888 (684 ) 2002 8/15/2007 30 Hackley Medical Center Grand Rapids, MI 5,397 1,840 6,402 24 1,840 6,426 8,266 (1,674 ) 1968 12/22/2006 30 Ingham Regional Medical Center Lansing, MI — 310 2,893 (1,134 ) 310 1,759 2,069 (800 ) 1994 7/26/2006 39 Meadow View Professional Center Kingsport, TN 10,410 2,270 11,344 — 2,270 11,344 13,614 (2,923 ) 2005 5/10/2007 30 Mid Coast Hospital Office Building Portland, ME 7,869 — 11,247 8 — 11,255 11,255 (2,477 ) 2008 5/1/2008 30 New Albany Professional Building Columbus, OH — 237 2,767 20 237 2,787 3,024 (472 ) 2000 1/4/2008 42 Northpark Trail Atlanta, GA — 839 1,245 235 839 1,480 2,319 (539 ) 2001 12/28/2005 35 Remington Medical Commons Chicago, IL 4,399 895 6,499 319 895 6,818 7,713 (1,464 ) 2008 6/1/2008 30 Stonecreek Family Health Center Columbus, OH — 459 1,898 (153 ) 459 1,745 2,204 (687 ) 1996 9/15/2006 23 Summit Healthplex Atlanta, GA — 2,633 15,576 4,412 2,633 19,988 22,621 (3,735 ) 2002 7/3/2008 44 Valley West Hospital Medical Office Building Chicago, IL 4,878 — 6,275 611 — 6,886 6,886 (1,588 ) 2007 11/1/2007 30 East El Paso MOB El Paso, TX — 710 4,500 — 710 4,500 5,210 (171 ) 2004 8/30/2013 35 East El Paso Surgery Center El Paso, TX — 3,070 23,627 — 3,070 23,627 26,697 (875 ) 2004 8/30/2013 36 LifeCare Plano LTACH Plano, TX — 3,370 11,689 455 3,370 12,144 15,514 (613 ) 1987 9/18/2013 25 Crescent City Surgical Centre New Orleans, LA 18,750 — 34,208 — — 34,208 34,208 (891 ) 2010 9/30/2013 48 Foundation Surgical Affiliates MOB Oklahoma City, OK 7,647 1,300 12,724 — 1,300 12,724 14,024 (370 ) 2004 9/30/2013 43 Pensacola Medical Office Building Pensacola, FL — 990 5,005 6 990 5,011 6,001 (128 ) 2012 10/4/2013 49 Central Ohio Neurosurgical Surgeons MOB (CONS) Columbus, OH — 981 7,620 — 981 7,620 8,601 (188 ) 2007 11/27/2013 44 Great Falls Ambulatory Surgery Center Great Falls, MT — 203 3,224 — 203 3,224 3,427 (102 ) 1999 12/11/2013 33 Eagles Landing Family Practice Medical Office Building Conyers, GA — 1,000 3,345 — 1,000 3,345 4,345 (78 ) 2008 2/19/2014 37 Eagles Landing Family Practice Medical Office Building McDonough, GA — 800 4,893 — 800 4,893 5,693 (116 ) 2007 2/19/2014 36 Eagles Landing Family Practice Medical Office Building McDonough, GA — 400 5,086 — 400 5,086 5,486 (116 ) 2006 2/19/2014 37 Eagles Landing Family Practice Medical Office Building Jackson, GA — 800 4,600 — 800 4,600 5,400 (103 ) 2010 2/19/2014 38 Foundation Surgical Hospital of San Antonio San Antonio, TX 9,783 2,230 23,346 — 2,230 23,346 25,576 (634 ) 2007 2/19/2014 35 Foundation Healthplex of San Antonio San Antonio, TX — 911 4,189 — 911 4,189 5,100 (104 ) 2007 2/16/2014 35 21st Century Radiation Oncology — Sarasota Sarasota, FL — 633 6,557 — 633 6,557 7,190 (211 ) 1975 2/26/2014 27 21st Century Radiation Oncology — Venice Venice, FL — 814 2,952 — 814 2,952 3,766 (79 ) 1987 2/26/2014 35 21st Century Radiation Oncology — Englewood Englewood, FL — 350 1,878 — 350 1,878 2,228 (45 ) 1992 2/26/2014 38 21st Century Radiation Oncology — Port Charlotte Port Charlotte, FL — 269 2,326 — 269 2,326 2,595 (57 ) 1996 2/26/2014 36 Peachtree Dunwoody Medical Office Building Center Atlanta, GA — 6,046 27,435 7 6,046 27,442 33,488 (936 ) 1987 2/28/2014 25 Lifecare LTACH — Pittsburgh Pittsburgh, PA — 1,142 11,737 — 1,142 11,737 12,879 (315 ) 1987 3/28/2014 30 Lifecare LTACH — Ft Worth Ft. Worth, TX — 2,730 24,639 — 2,730 24,639 27,369 (632 ) 1987 3/28/2014 30 Pinnacle Health Medical Office Building Carlisle, PA — 424 2,232 — 424 2,232 2,656 (46 ) 2002 4/22/2014 35 Pinnacle Health Medical Office Building Harrisburg, PA — 795 4,601 — 795 4,601 5,396 (133 ) 1990 4/22/2014 25 South Bend Orthopaedics Medical Office Building South Bend, IN — 2,418 11,355 — 2,418 11,355 13,773 (217 ) 2007 4/30/2014 40 Grenada Medical Complex Grenada, MS — 185 5,820 — 185 5,820 6,005 (151 ) 1975 4/30/2014 30 Mississippi Ortho Medical Office Building Jackson, MS — 1,272 14,177 — 1,272 14,177 15,449 (248 ) 1987 5/23/2014 35 Carmel Medical Pavilion Carmel, IN — — 3,917 — — 3,917 3,917 (97 ) 1993 5/28/2014 25 Presbyterian Medical Plaza Monroe, NC — 1,195 5,681 — 1,195 5,681 6,876 (67 ) 2008 6/30/2014 45 Renaissance Ambulatory Surgery Center Oshkosh, WI — 228 7,658 — 228 7,658 7,886 (99 ) 2007 6/30/2014 40 Summit Urology Bloomington, IN — 125 4,792 — 125 4,792 4,917 (82 ) 1996 6/30/2014 30 500 Landmark Bloomington, IN — 627 3,549 — 627 3,549 4,176 (53 ) 2000 7/1/2014 35 550 Landmark Bloomington, IN — 2,717 15,224 — 2,717 15,224 17,941 (227 ) 2000 7/1/2014 35 574 Landmark Bloomington, IN — 418 1,493 — 418 1,493 1,911 (23 ) 2004 7/1/2014 35 Carlisle II MOB Carlisle, PA — 412 3,962 — 412 3,962 4,374 (39 ) 1996 7/25/2014 45 Surgical Institute of Monroe Monroe, MI — 410 5,743 — 410 5,743 6,153 (80 ) 2010 7/28/2014 35 The Oaks at Lady Lake Lady Lake, FL — 1,065 8,642 — 1,065 8,642 9,707 (87 ) 2011 7/31/2014 42 Mansfield ASC Mansfield, TX — 1,491 6,471 — 1,491 6,471 7,962 (52 ) 2010 9/2/2014 46 Eye Center of Southern Indiana Bloomington, IN — 910 11,477 — 910 11,477 12,387 (113 ) 1995 9/5/2014 35 Wayne State Troy, MI — 3,560 43,052 — 3,560 43,052 46,612 (392 ) 1986 9/10/2014 38 Zangmesiter Columbus, OH — 1,610 31,120 — 1,610 31,120 32,730 (203 ) 2007 9/30/2014 40 El Paso — Lee Trevino El Paso, TX — 2,294 11,316 183 2,294 11,499 13,793 (101 ) 1983 9/30/2014 30 El Paso — Kenworthy El Paso, TX — 728 2,178 — 728 2,178 2,906 (17 ) 1983 9/30/2014 35 El Paso — Murchison El Paso, TX — 2,283 24,543 — 2,283 24,543 26,826 (211 ) 1970 9/30/2014 30 Berger Medical Center Columbus, OH — — 5,950 — — 5,950 5,950 (43 ) 2007 9/30/2014 38 Ortho One — Columbus Columbus, OH — — 16,234 — — 16,234 16,234 (100 ) 2009 9/30/2014 45 Ortho One — Westerville Westerville, OH — 362 3,944 — 362 3,944 4,306 (25 ) 2007 9/30/2014 43 Pinnacle — 32 Northeast Hershey, PA — 408 3,232 — 408 3,232 3,640 (18 ) 1994 10/29/2014 33 Pinnacle — 240 Grandview Camp Hill, PA — 321 4,242 — 321 4,242 4,563 (22 ) 1980 10/29/2014 35 Pinnacle — 4518 Union Deposit Harrisburg, PA — 617 7,305 — 617 7,305 7,922 (42 ) 2004 10/29/2014 31 Pinnacle — 4520 Union Deposit Harrisburg, PA — 169 2,055 — 169 2,055 2,224 (13 ) 1997 10/29/2014 28 Pinnacle — Market Place Way Harrisburg, PA — 808 2,383 — 808 2,383 3,191 (11 ) 2004 10/29/2014 35 Columbus — 2000 10th Avenue Columbus, GA — 380 2,737 — 380 2,737 3,117 (12 ) 1989 11/20/2014 22 Columbus — 1942 North Avenue Columbus, GA — 91 273 — 91 273 364 (2 ) 1971 11/20/2014 12 Columbus — 920 18th Street Columbus, GA — 110 281 — 110 281 391 (3 ) 1982 11/20/2014 8 Columbus — 1900 10th Ave Columbus, GA — 474 5,580 — 474 5,580 6,054 (19 ) 1976 11/20/2014 26 Columbus — 1800 10th Ave Columbus, GA — 539 5,238 — 539 5,238 5,777 (17 ) 1976 11/20/2014 28 Columbus — 705 17th Street Columbus, GA — 372 2,346 — 372 2,346 2,718 (14 ) 1994 11/20/2014 15 Columbus — 615 19th Street Columbus, GA — 75 113 — 75 113 188 (3 ) 1976 11/20/2014 3 Columbus — 1968 North Avenue Columbus, GA — 89 32 — 89 32 121 (1 ) 1966 11/20/2014 4 Columbus — 633 19th Street Columbus, GA — 99 255 — 99 255 354 (3 ) 1972 11/20/2014 9 Columbus — 500 18th Street Columbus, GA — 430 170 — 430 170 600 (3 ) 1982 11/20/2014 8 Columbus — 2200 Hamilton Rd Columbus, GA — 267 1,579 — 267 1,579 1,846 (7 ) 1992 11/20/2014 22 Columbus — 1810 Stadium Drive Phenix City, AL — 202 149 — 202 149 351 (2 ) 1999 11/20/2014 30 Middletown Medical — 111 Maltese Wallkill, NY — 670 9,921 — 670 9,921 10,591 (24 ) 1988 11/26/2014 35 Middletown Medical — 2 Edgewater Wallkill, NY — 200 2,966 — 200 2,966 3,166 (7 ) 1992 11/26/2014 35 Carle Danville MOB Danville, IL — 607 7,136 — 607 7,136 7,743 (20 ) 2007 11/26/2014 33 Napoleon MOB New Orleans, LA — 1,202 7,412 5 1,202 7,417 8,619 — 1974 12/18/2014 25 West TN Bone & Joint — Physicians Drive Jackson, TN — 650 2,960 — 650 2,960 3,610 — 1996 12/30/2014 35 West TN Bone & Joint Jackson, TN — 1,254 5,215 — 1,254 5,215 6,469 — 1991 12/30/2014 31 78,105 79,334 643,802 5,898 79,334 649,700 729,034 (32,772 ) The cost capitalized subsequent to acquisitions is net of dispositions. The changes in total real estate for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): Year Ended December 31, 2014 2013 2012 Balance as of the beginning of the year $ 224,730 $ 111,149 $ 124,333 Acquisitions 505,379 113,225 — Additions 900 806 786 Impairment (1,750 ) — (937 ) Dispositions (225 ) (450 ) (13,033 ) Balance as of the end of the year $ 729,034 $ 224,730 $ 111,149 The changes in accumulated depreciation for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): Year Ended December 31, 2014 2013 2012 Balance as of the beginning of the year $ 20,299 $ 16,495 $ 14,484 Acquisitions 6,575 694 — Additions 5,898 3,110 3,024 Dispositions — — (1,013 ) Balance as of the end of the year $ 32,772 $ 20,299 $ 16,495 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Property holding entities and other subsidiaries of which the Operating Partnership owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest are consolidated. All inter-company balances and transactions are eliminated in consolidation. For entities in which the OP owns less than 100% of the equity interest, the OP consolidates the property if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements. For these entities, the OP records a non-controlling interest representing equity held by non-controlling interests. GAAP requires the OP to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). ASC 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The OP identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The OP consolidates investments in a VIE when it determines that the OP is the VIE’s primary beneficiary. The OP may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The OP performs this analysis on an ongoing basis. |
Noncontrolling Interests | Noncontrolling Interests The OP presents the portion of any equity it does not own in entities that it controls (and thus consolidates) as noncontrolling interests and classifies such interests as a component of consolidated equity, separate from the OP’s total limited partners’ capital, on the consolidated balance sheets. In connection with the closing of the IPO, the Trust and the Operating Partnership completed related formation transactions pursuant to which the Operating Partnership acquired from the Ziegler Funds, the Ziegler Funds’ ownership interests in 19 medical office buildings located in ten states in exchange for an aggregate of 2,744,000 OP Units and the payment of approximately $36.9 million of debt related to such properties. In connection with the acquisition of a surgical center hospital in the New Orleans, Louisiana metropolitan area for approximately $37.5 million , on September 30, 2013, the Operating Partnership partially funded the purchase price by issuing 954,877 OP Units valued at approximately $11.5 million on the date of issuance. During the year ended December 31, 2014, the Operating Partnership partially funded five property acquisitions by issuing an aggregate of 2,042,313 OP Units valued at approximately $28.6 million on the date of issuance. The five acquisitions had a total purchase price of approximately $103.6 million . Limited partners' capital represents OP Units held by the Predecessor’s prior investors and other investors. As of December 31, 2014, the General Partner held a 94.1% interest in the Operating Partnership. Holders of OP Units may not transfer their units without the General Partners' prior written consent. Beginning on the first anniversary of the issuance of OP Units, OP Unit holders may tender their units for redemption by the Operating Partnership in exchange for cash equal to the market price of the Trust’s common shares at the time of redemption or, for unregistered common shares on a one -for-one basis. Such selection to pay cash or issue common shares to satisfy an OP Unit holder’s redemption request is solely within the control of the General Partner. Partially Owned Properties: The OP reflects noncontrolling interests in partially owned properties on the balance sheet for the portion of properties consolidated by the OP that are not wholly owned by the OP. The earnings or losses from those properties attributable to the noncontrolling interests are reflected as noncontrolling interests in partially owned properties in the consolidated and combined statement of operations. |
Dividends and Distributions | Distributions Declaration Date Record Date Payment Date Cash Distributions per OP Unit December 30, 2014 January 23, 2015 February 6, 2015 $ 0.225 September 26, 2014 October 17, 2014 October 30, 2014 $ 0.225 June 26, 2014 July 18, 2014 August 1, 2014 $ 0.225 March 27, 2014 April 11, 2014 April 25, 2014 $ 0.225 December 30, 2013 January 24, 2014 February 7, 2014 $ 0.225 September 30, 2013 October 18, 2013 November 1, 2013 $ 0.18 (1) (1) Prorated cash distribution of $0.18 per OP Unit for the quarterly period from July 19, 2013 (the date of the IPO) through September 30, 2013, which was equivalent to a full quarterly distribution of $0.225 per OP Unit. The distribution was paid on November 1, 2013 to OP Unit holders of record on October 18, 2013, with the exception of the OP Units issued in the acquisition of Crescent City Surgical Centre. |
Purchase of Investment Properties | Purchase of Investment Properties A property acquired not subject to an existing lease is treated as an asset acquisition and recorded at its purchase price, inclusive of acquisition costs, allocated between the acquired tangible assets and assumed liabilities based upon their relative fair values at the date of acquisition. A property acquired with an existing lease is accounted for as a business combination pursuant to the acquisition method in accordance with ASC Topic 805, Business Combinations (“ASC 805”), and assets acquired and liabilities assumed, including identified intangible assets and liabilities, are recorded at fair value. The determination of fair value involves the use of significant judgment and estimation. The OP makes estimates of the fair value of the tangible and intangible acquired assets and assumed liabilities using information obtained from multiple sources as a result of pre-acquisition due diligence and may include the assistance of a third party appraiser. The OP estimates the fair value of buildings acquired on an as-if-vacant basis and depreciates the building value over the estimated remaining life of the building. The OP determines the allocated value of other fixed assets, such as site improvements, based upon the replacement cost and depreciates such value over the assets’ estimated remaining useful lives as determined at the applicable acquisition date. The fair value of land is determined either by considering the sales prices of similar properties in recent transactions or based on internal analyses of recently acquired and existing comparable properties within the OP’s portfolio. In recognizing identified intangible assets and liabilities in connection with a business combination, the value of above-or-below market leases is estimated based on the present value (using an interest rate which reflected the risks associated with the leases acquired) of the difference between contractual amounts to be received pursuant to the leases and management’s estimate of market lease rates measured over a period equal to the estimated remaining term of the lease. The capitalized above-market or below-market lease intangibles are amortized as a reduction or addition to rental income over the estimated remaining term of the respective leases. In determining the value of in-place leases and tenant relationships, management considers current market conditions and costs to execute similar leases in arriving at an estimate of the carrying costs during the expected lease-up period from vacant to existing occupancy. In estimating carrying costs, management includes real estate taxes, insurance, other operating expenses, estimates of lost rental revenue during the expected lease-up periods, and costs to execute similar leases, including leasing commissions, tenant improvements, legal, and other related costs based on current market demand. The values assigned to in-place leases and tenant relationships are amortized over the estimated remaining term of the lease. The values assigned to all lease intangible assets and liabilities are amortized over the estimated remaining term of the lease. If a lease terminates prior to its scheduled expiration, all unamortized costs related to that lease are written off. The OP calculates the fair value of any long-term debt assumed by discounting the remaining contractual cash flows on each instrument at the current market rate for those borrowings, which the OP approximates based on the rate at which it would expect to incur on a replacement instrument on the date of acquisition, and recognize any fair value adjustments related to long-term debt as effective yield adjustments over the remaining term of the instrument. Based on these estimates, the OP recognizes the acquired assets and assumed liabilities at their estimated fair values, which are generally determined using Level 3 inputs, such as market rental rates, capitalization rates, discount rates, or other available market data. Initial valuations are subject to change until the information is finalized, no later than 12 months from the acquisition date. The OP expenses transaction costs associated with acquisitions accounted for as business combinations in the period incurred. |
Impairment of Intangible and Long-Lived Assets | Impairment of Intangible and Long-Lived Assets The OP periodically evaluates its long-lived assets, primarily consisting of investments in real estate, for impairment indicators or whenever events or changes in circumstances indicate that the recorded amount of an asset may not be fully recoverable. If indicators of impairment are present, the OP evaluates the carrying value of the related real estate properties in relation to the undiscounted expected future cash flows of the underlying operations. In performing this evaluation, management considers market conditions and current intentions with respect to holding or disposing of the real estate property. The OP adjusts the net book value of real estate properties to fair value if the sum of the expected future undiscounted cash flows, including sales proceeds, is less than book value. The OP recognizes an impairment loss at the time it makes any such determination. If the OP determines that an asset is impaired, the impairment to be recognized is measured as the amount by which the recorded amount of the asset exceeds its fair value. Fair value is typically determined using a discounted future cash flow analysis or other acceptable valuation techniques, which are based, in turn, upon Level 3 inputs, such as revenue and expense growth rates, capitalization rates, discount rates or other available market data. The OP recorded real estate impairment charges of $1.8 million and $0 for the years ended December 31, 2014 and 2013, respectively. The Predecessor recognized impairments totaling $0.9 million for the year ended December 31, 2012. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations The OP may sell properties from time to time for various reasons, including favorable market conditions. The OP classifies certain long-lived assets as held for sale once the criteria, as defined by GAAP, has been met. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value minus cost to sell and are no longer depreciated. In 2014, the FASB issued Accounting Standards Update 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-8”), which raises the threshold for disposals to qualify as discontinued operations. A discontinued operation is defined as: (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. ASU 2014-8 also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations in the Trust’s previously issued financial statements. The OP early adopted ASU 2014-8 for the quarter ended March 31, 2014. Such adoption has had no impact on the OP’s financial statements as no dispositions have occurred during the year ended December 31, 2014. Prior to the adoption of ASU 2014-8, the results of operations for assets meeting the definition of discontinued operations are reflected in the consolidated and combined statements of operations as discontinued operations for all periods presented. The OP allocates estimated interest expense to discontinued operations based on property values and either the weighted average interest rate of the OP or the property’s actual mortgage interest. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities The OP reports investments in unconsolidated entities over whose operating and financial policies it has the ability to exercise significant influence under the equity method of accounting. Under this method of accounting, the OP's share of the investee’s earnings or losses is included in its consolidated and combined statements of operations. The initial carrying value of investments in unconsolidated entities is based on the amount paid to purchase the equity interest. During 2014, the Operating Partnership completed the acquisition of a 40% limited liability company membership interest in Jeff-Orleans Medical Development Real Estate, L.L.C, the entity that owns and leases to us the land on which the Crescent City Surgical Centre is situated, for $1.3 million . |
Real Estate Loans Receivable | Real Estate Loans Receivable Real estate loans receivable consists of a mezzanine loan and a term loan which are collateralized by an equity interest in a two medical office building developments. Interest income on the loans are recognized as earned based on the terms of the loans subject to evaluation of collectability risks and are included in the Operating Partnership's consolidated and combined statement of operations. On January 2, 2014, the OP completed a $6.9 million mezzanine loan to affiliates controlled by MedProperties Holdings, LLC, a Dallas, Texas based private investor in medical facilities (“MedProperties”). The mezzanine loan is secured by MedProperties’ ownership interest in two special purpose entities that own a surgical hospital located in San Antonio, Texas and an inpatient rehabilitation facility located in Scottsdale, Arizona. The mezzanine loan has a five year, interest-only term and bears interest at a rate of 9.0% per annum. As part of the consideration for providing the mezzanine loan, the OP has an option to acquire the property at a formula purchase price during year four of the mezzanine loan based on a fixed capitalization rate . On November 26, 2014, the OP made an $8.6 million term loan to fund the renovations and additions of two re-purposed buildings in Jacksonville, Florida. Upon completion of the expansion and renovations, the properties will be approximately 40,000 square feet in the aggregate. Upon completion of the construction of the buildings and them becoming fully occupied, the Trust has the option to purchase the buildings. The term loan bears interest at a rate of 9.0% . |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and short-term investments with maturities of three months or less from the date of purchase. The OP is subject to concentrations of credit risk as a result of its temporary cash investments. The OP places its temporary cash investments with high credit quality financial institutions in order to mitigate that risk. |
Escrow reserves | Escrow reserves The OP is required to maintain various escrow reserves on certain notes payable to cover future property taxes and insurance and tenant improvements costs as defined in each loan agreement. The total reserves as of December 31, 2014 and 2013 are $1.9 million and $1.6 million , respectively, which are included in other assets in the consolidated balance sheets. |
Deferred costs | Deferred costs Deferred costs consist primarily of fees paid to obtain financing and costs associated with the origination of long-term lease on real estate properties. After the purchase of a property, lease commissions incurred to extend in-place leases or generate new lease are added to deferred lease costs. Deferred lease costs are amortized on a straight-line basis over the terms of their respective agreements. The OP amortizes deferred financing costs as a component of interest expense over the terms of the related borrowings using a method that approximates a level yield. |
Derivatives | Derivatives Derivatives consist of an interest rate swap and is recognized as a liability on the consolidated balance sheets and is measured at fair value. Any change in the fair value is recognized immediately in earnings unless the derivative qualified as a hedge. No derivatives have been designated as hedges. The OP is exposed to certain risks in the normal course of its business operations. One risk relating to the variability of interest on variable rate debt is managed through the use of derivatives. All derivative financial instruments are measured and reported in the consolidated balance sheets at fair value. The OP has elected not to apply hedge accounting to its derivative financial instruments and as such, any changes in the fair values of its derivatives are recognized immediately in earnings. Generally, the OP enters into swap relationships such that changes in the fair value or cash flows of items and transactions being hedged are expected to be offset by corresponding changes in the values of the derivatives. The OP holds one swap to pay fixed/receive variable interest rates with a total notional amount of $7.7 million and $7.9 million as of December 31, 2014 and 2013, respectively. The interest rate swap liability is reported in accrued expenses and other liabilities on the consolidated balance sheet, as of December 31, 2014 and 2013, the interest rate swap liability was $0.2 million and $0.4 million , respectively. Gains recognized on the interest rate swaps of $(0.2) million , $(0.2) million and $(0.1) million were included in interest income on real estate loans and other in the consolidated and combined statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. |
Tenant receivables, net | Tenant receivables, net Tenant accounts receivable are stated net of the applicable allowance. Rental payments under these contracts are primarily due monthly. The OP assesses the collectability of tenant receivables, including straight-line rent receivables, and defers recognition of revenue if collectability is not reasonably assured. The OP bases its assessment of the collectability of rent receivables on several factors, including, among other things, payment history, the financial strength of the tenant and current economic conditions. If management’s evaluation of these factors indicates it is probable that the OP will be unable to recover the full value of the receivable, the OP provides a reserve against the portion of the receivable that it estimates may not be recovered. At December 31, 2014 and 2013, the allowance for doubtful accounts was $0.1 million . |
Rental Revenue | Rental Revenue Rental revenue is recognized on a straight-line basis over the terms of the related leases when collectability is reasonably assured. Recognizing rental revenue on a straight-line basis for leases may result in recognizing revenue for amounts more or less than amounts currently due from tenants. Amounts recognized in excess of amounts currently due from tenants are included in other assets and were approximately $6.4 million and $2.0 million as of December 31, 2014 and 2013, respectively. If the OP determines that collectability of straight-line rents is not reasonably assured, the OP limits future recognition to amounts contractually owed and, where appropriate, establishes an allowance for estimated losses. Rental revenue is adjusted by amortization of lease inducements and above or below market rents on certain leases. Lease inducements and above or below market rents are amortized over the average remaining life of the lease. |
Expense Recoveries | Expense Recoveries Expense recoveries relate to tenant reimbursement of real estate taxes, insurance and other operating expenses that are recognized as expense recovery revenue in the period the applicable expenses are incurred. The reimbursements are recorded at gross, as the OP is generally the primary obligor with respect to real estate taxes and purchasing goods and services from third-party suppliers and has discretion in selecting the supplier and bears the credit risk of tenant reimbursement. The OP has certain tenants with absolute net leases. Under these lease agreements, the tenant is responsible for operating and building expenses. For absolute net leases, the OP does not recognize expense recoveries |
Income Taxes | Income Taxes As a partnership, the Operating Partnership generally is not liable for federal income taxes. The income and loss from the operations of the Operating Partnership is included in the tax returns of its limited partners, including the Trust, who are responsible for reporting their allocable share of the partnership income and loss. Accordingly, no provision for income taxes has been made on the accompanying consolidated financial statements. |
Management Estimates | Management Estimates The preparation of consolidated and combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated and combined financial statements and the amounts of revenue and expenses reported in the period. Significant estimates are made for the fair value assessments with respect to purchase price allocations, impairment assessments, and the valuation of financial instruments. Actual results could differ from these estimates. |
Contingent Liability | Contingent Liability The OP records a liability for contingent consideration (included in accrued expenses and other liabilities on its consolidated balance sheets) at fair value as of the acquisition date and reassess the fair value at the end of each reporting period, with any changes being recognized in earnings. Increases or decreases in the fair value of contingent consideration can result from changes in discount periods, discount rates and probabilities that contingencies will be met. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the previously reported consolidated financial position or consolidated and combined results of operations. |
Segment reporting | Segment reporting Under the provision of Codification Topic 280, Segment Reporting , the OP has determined that it has one reportable segment with activities related to leasing and managing healthcare properties. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers , which creates a new Topic Accounting Standards Codification (Topic 606). The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for interim or annual periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. Early adoption of this standard is not allowed. The OP is currently evaluating the impact the adoption of Topic 606 will have on its financial statements, if any. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, to address financial reporting considerations about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and for interim periods within annual periods beginning after December 15, 2016. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The new guidance has been applied retrospectively to each prior period presented. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Schedule of dividend declared | Declaration Date Record Date Payment Date Cash Distributions per OP Unit December 30, 2014 January 23, 2015 February 6, 2015 $ 0.225 September 26, 2014 October 17, 2014 October 30, 2014 $ 0.225 June 26, 2014 July 18, 2014 August 1, 2014 $ 0.225 March 27, 2014 April 11, 2014 April 25, 2014 $ 0.225 December 30, 2013 January 24, 2014 February 7, 2014 $ 0.225 September 30, 2013 October 18, 2013 November 1, 2013 $ 0.18 (1) (1) Prorated cash distribution of $0.18 per OP Unit for the quarterly period from July 19, 2013 (the date of the IPO) through September 30, 2013, which was equivalent to a full quarterly distribution of $0.225 per OP Unit. The distribution was paid on November 1, 2013 to OP Unit holders of record on October 18, 2013, with the exception of the OP Units issued in the acquisition of Crescent City Surgical Centre. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Schedule of acquisitions and aggregate purchase price | During 2014, the OP completed acquisitions of 61 healthcare properties located in 15 states for an aggregate purchase price of approximately $543.4 million as summarized below: Property(1) Location Acquisition Date Purchase Price (in thousands) Foundation San Antonio Surgical Hospital(2) San Antonio, TX February 19, 2014 $ 25,556 Eagles Landing Family Practice 4 MOBs(2) Atlanta, GA February 19, 2014 20,800 21 st Century Oncology 4 MOBs(3) Sarasota, FL February 26, 2014 17,486 Foundation San Antonio MOB(3) San Antonio, TX February 28, 2014 6,800 Peachtree Dunwoody MOB(3) Atlanta, GA February 28, 2014 36,726 LifeCare LTACH(2) Fort Worth, TX March 28, 2014 27,160 LifeCare LTACH(2) Pittsburgh, PA March 28, 2014 12,840 Pinnacle Health Cardiology Portfolio 2 MOBs (3) Carlisle & Wormleyburg, PA April 22, 2014 9,208 South Bend Orthopedic MOB (3) South Bend, IN April 30, 2014 14,900 Grenada Medical Complex MOB (3) Grenada, MS April 30,2014 7,100 Mississippi Sports Medicine and Orthopaedics Center MOB (2)(4) Jackson, MS May 23, 2014 16,700 Carmel Medical Pavilion MOB (3)(5) Carmel, IN May 28, 2014 4,664 Summit Urology MOB (2) Bloomington, IN June 30, 2014 4,783 Renaissance Center (3) Oshkosh, WI June 30, 2014 8,500 Presbyterian Medical Plaza MOB (3) Monroe, NC June 30, 2014 7,750 Landmark Medical Portfolio (Premier) 3 MOBs (2)(6) Bloomington, IN July 1, 2014 23,837 Carlisle II MOB (3) Carlisle, PA July 25, 2014 4,500 Surgical Institute of Monroe ASC (2) Monroe, MI July 28, 2014 6,000 The Oaks Medical Building MOB (3) Lady Lake, FL July 31, 2014 10,600 Baylor Surgicare ASC — Mansfield (3) Mansfield, TX September 2, 2014 8,500 Eye Center of Southern Indiana (2)(7) Bloomington, IN September 5, 2014 12,174 Wayne State Medical Center and MOB (2) Troy, MI September 10, 2014 46,500 El Paso Portfolio (specialty surgical hospital and 2 MOBs) (3)(8) El Paso, TX September 30, 2014 46,235 The Mark H. Zangmeister Center (3) Columbus, OH September 30, 2014 36,600 Berger Medical Center (3) Orient, OH September 30, 2014 6,785 Orthopedic One 2 MOBs (3) Columbus, OH Westerville, OH September 30, 2014 24,500 Pinnacle Health Portfolio 5 MOBs (3) Harrisburg, PA October 29, 2014 23,100 Columbus Regional Health Portfolio 12 MOBs (3) Columbus Regional Health Portfolio 1 MOB (3) Columbus, GA Phenix City, AL November 20, 2014 27,997 Middletown Medical 2 MOBs (2) Middletown, NY November 26. 2014 14,399 Carle Danville Clinic MOB(3) Danville, IL November 26, 2014 10,300 Napoleon Medical Building MOB (3) New Orleans, LA December 18, 2014 10,500 West Tennessee Bone & Joint 1 MOB 1 ASC (2) Jackson, TN December 30, 2014 9,936 Total $ 543,436 (1) “MOB” means medical office building, “LTACH” means long-term acute care hospital and “ASC” means ambulatory surgical center. (2) The Operating Partnership accounted for these acquisitions as asset acquisitions and capitalized $1.7 million of total acquisition costs to the basis of the properties. (3) The Operating Partnership accounted for these acquisitions as business combinations pursuant to the acquisition method and expensed total acquisition costs of $10.9 million . (4) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 147,659 OP Units valued at approximately $1.9 million in the aggregate on the date of issuance. (5) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 96,099 OP Units valued at approximately $1.2 million in the aggregate on the date of issuance. (6) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 576,040 OP Units valued at approximately $8.3 million in the aggregate on the date of issuance. (7) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 272,191 OP Units valued at approximately $4.0 million in the aggregate on the date of issuance. (8) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 950,324 OP Units valued at approximately $13.2 million in the aggregate on the date of issuance. |
Schedule of preliminary purchase price allocations of assets acquired and liabilities assumed | The following table summarizes the preliminary purchase price allocations of the assets acquired and the liabilities assumed, which the OP determined using Level 2 and Level 3 inputs (in thousands): Land $ 53,687 Building and improvements 451,691 In-place lease intangibles 35,720 Above market in-place lease intangibles 5,270 Below market in-place lease intangibles (2,330 ) Above market in-place ground lease (701 ) Investment in unconsolidated entity 1,300 Issuance of OP units (28,589 ) Mortgage debt assumed (15,283 ) Lease inducement 1,532 Derivative liability assumed (197 ) Contingent consideration (840 ) Leasehold interest 759 Receivable 640 Net assets acquired $ 502,659 |
Schedule of pro forma combined revenue, net income, and earnings per share-basic and diluted | The following table illustrates the pro forma combined revenue, net income, and earnings per unit —basic and diluted as if Physicians Realty LP had acquired the above acquisitions as of January 1, 2013 (in thousands, except per share amounts): Year Ended December 31, 2014 2013 Revenue $ 81,507 $ 71,183 Net income 16,883 11,461 Net income available to common shareholders 16,883 11,461 Earnings per unit - basic and diluted $ 0.31 $ 0.21 Common units issued and outstanding 53,831,202 53,831,202 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Summary of the carrying amount of intangible assets and liabilities | The following is a summary of the carrying amount of intangible assets and liabilities as of 2014 and 2013 (in thousands): December 31, 2014 December 31, 2013 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Assets In-place leases $ 64,777 $ (12,213 ) $ 52,564 $ 29,056 $ (8,080 ) $ 20,976 Above market leases 7,449 (578 ) 6,871 2,180 (48 ) 2,132 Leasehold interest 759 (5 ) 754 — — — Total $ 72,985 $ (12,796 ) $ 60,189 $ 31,236 $ (8,128 ) $ 23,108 Liability Below market lease $ 2,330 $ (156 ) $ 2,174 — — — Above market ground lease 701 (4 ) 697 — — — Total $ 3,031 $ (160 ) $ 2,871 $ — $ — $ — |
Summary of the acquired lease intangible amortization | The following is a summary of the acquired lease intangible amortization for the years ended December 31, 2014, 2013 and 2012 (in thousands): December 31, 2014 2013 2012 Amortization expense related to in-place leases $ 4,133 $ 1,252 $ 900 Decrease of rental income related to above-market leases 530 48 — Decrease of rental income related to leasehold interest 5 — — Increase of rental income related to below-market leases 156 — — Decrease of operating expense related to above market ground leases 4 — — |
Schedule of future aggregate amortization of the acquired lease intangibles | Future aggregate net amortization of the acquired lease intangibles as of December 31, 2014, is as follows (in thousands): Net Decrease in Revenue Net Increase in Expenses 2015 $ (667 ) $ 7,446 2016 (689 ) 7,384 2017 (567 ) 7,165 2018 (560 ) 6,628 2019 (458 ) 4,625 Thereafter (2,511 ) 18,618 Total $ (5,452 ) $ 51,866 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Other Assets, Unclassified [Abstract] | |
Schedule Of Other Assets | Other assets consisted of the following as of December 31, 2014 and 2013 (in thousands): December 31, 2014 2013 Straight line rent receivable $ 6,431 $ 2,018 Lease inducements, net 2,845 1,509 Escrows 1,906 1,552 Earnest deposits 2,343 — Prepaid expenses and other 2,281 822 Total $ 15,806 $ 5,901 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following is a summary of debt as of December 31, 2014 and 2013 (in thousands): December 31, 2014 2013 Mortgage notes, bearing fixed interest from 4.71% to 6.58%, with a weighted average interest rate of 5.26%, and due in 2016, 2017, 2018, 2019, 2021 and 2022 collateralized by nine properties with a net book value of $118,247 $ 73,706 $ 38,288 Mortgage note, bearing variable interest of LIBOR plus 2.75% and due in 2017, collateralized by one property with a net book value of $6,249 4,399 4,533 Total mortgage debt 78,105 42,821 $400 million unsecured revolving credit facility bearing variable interest of LIBOR plus 1.50%, due September 2018 138,000 — Total Debt $ 216,105 $ 42,821 Unamortized deferred financing cost (4,870 ) (2,105 ) Total debt $ 211,235 $ 40,716 |
Schedule of consolidated leverage ratios | The Credit Agreement provides for revolving credit loans to the Operating Partnership. Base Rate Loans, Adjusted LIBOR Rate Loans and Letters of Credit (each, as defined in the Credit Agreement) will be subject to interest rates, based upon the consolidated leverage ratio of the Operating Partnership and its subsidiaries as follows: Consolidated Leverage Ratio Adjusted LIBOR Rate Loans and Letter of Credit Fee Base Rate Loans < 35% LIBOR + 1.50% 0.50 % >35% and < 45% LIBOR + 1.65% 0.65 % >45% and <45% LIBOR + 1.75% 0.75 % >45% and < 50% LIBOR + 1.85% 0.85 % >50% and < 55% LIBOR + 2.00% 1.00 % >55% LIBOR + 2.20% 1.20 % |
Schedule of principal payments due on debt | Scheduled principal payments due on debt as of December 31, 2014, are as follows (in thousands): 2015 $ 1,864 2016 9,421 2017 28,750 2018 139,100 2019 19,906 Thereafter 17,064 Total Payments $ 216,105 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of non-vested restricted common shares | A summary of the status of the Trust’s nonvested restricted common shares as of December 31, 2014 and changes during the year then ended follow: Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2013 250,000 $ 11.50 Granted 152,987 13.79 Vested (61,179 ) 11.50 Share repurchase (22,154 ) 14.49 Non-vested at December 31, 2014 319,654 $ 12.60 |
Schedule of weighted average grant date fair value assumptions | The OP utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $19.25 per unit using the following assumptions: Volatility 18.8% - 34.2% Dividend assumption reinvested Expected term in years 2.83 Risk-free rate 0.65 % Stock price (per share) 13.47 |
Summary of the activity in the restricted share units | The following is a summary of the activity in the Trust's restricted share units during 2014: Restricted Share Units Weighted Average Grant Date Fair Value Non-vested at December 31, 2013 — $ — Granted 55,680 16.94 Vested — — Forfeited — — Non-vested at December 31, 2014 55,680 $ 16.94 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that were accounted for on a nonrecurring basis by level within the fair value hierarchy | The following table sets forth by level the fair value hierarchy of the OP’s assets that were accounted for on a non-recurring basis as of December 31, 2014. Non-recurring Fair Value Measurements At Report Date using: Carrying Value as of December 31, 2013 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses for Year Ended December 31, 2014 Investment properties $ 4,551 $ 1,529 $ — $ 1,272 $ (1,750 ) |
Summary of quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy | The following table summarizes the quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy as of December 31, 2014 (in thousands). Asset Category Fair Value at December 31, 2014 Valuation Technique Unobservable Inputs Rate Investment properties $ 1,272 Market comparable/ Discount rate 11.00 % Discounted cash flow Capitalization rate 8.00 % |
Schedule of fair value of other financial instruments | The following table presents the fair value of the OP’s financial instruments (in thousands). December 31, 2014 December 31, 2013 Carrying Amount Fair Value Carrying Amount Fair Value Real estate loans receivable $ 15,876 $ 15,876 $ — $ — Credit facility $ (138,000 ) $ (138,000 ) — — Mortgage debt $ (78,105 ) $ (78,642 ) $ (42,821 ) $ (44,130 ) Derivative liabilities $ (233 ) $ (233 ) $ (397 ) $ (397 ) |
Tenant Operating Leases (Tables
Tenant Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Tenant Operating Leases | |
Schedule of future minimum rental payments on non-cancelable leases, exclusive of expense recoveries | As of December 31, 2014, the future minimum rental payments on non-cancelable leases, exclusive of expense recoveries, were as follows (in thousands): 2015 $ 65,905 2016 65,323 2017 65,179 2018 62,637 2019 59,464 Thereafter 418,400 Total $ 736,908 |
Rent Expense (Tables)
Rent Expense (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Leases [Abstract] | |
Schedule of future minimum lease obligations under non-cancelable ground leases | As of December 31, 2014, the future minimum lease obligations under non-cancelable parking and ground leases were as follows (in thousands): 2015 $ 1,426 2016 1,442 2017 1,480 2018 1,521 2019 1,564 Thereafter 23,317 Total $ 30,750 |
Earnings Per Unitt (Tables)
Earnings Per Unitt (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Unit [Abstract] | |
Schedule of amounts used in computing basic and diluted earnings per share | The following table shows the amounts used in computing the Operating Partnership's basic and diluted earnings per OP Unit (in thousands, except unit and per unit data): Year Ended December 31, 2014 2013 Numerator for earnings per unit — basic and diluted: Net loss $ (4,418 ) $ (2,636 ) Less: Net loss attributable to Predecessor — 576 Less: Net income attributable to noncontrolling interests — partially owned properties (314 ) (71 ) Numerator for earnings per unit — basic and diluted $ (4,732 ) $ (2,131 ) Denominator for earnings per unit - basic and diluted units: 36,881,712 16,179,492 Basic and diluted earnings per unit $ (0.12 ) $ (0.13 ) |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Schedule of acquisitions through subsidiaries of operating partnership | The OP, through subsidiaries, closed on the below acquisitions: Property(1) Location Acquisition Date Purchase Price (in thousands) Edina MOB Edina, MN January 22, 2015 $ 14,190 Savage MOB Savage, MN January 22, 2015 12,800 Crystal MOB Crystal, MN January 22, 2015 14,782 Dell Rd MOB Chanhassen, MN January 22, 2015 6,410 Columbus MOB Columbus, GA January 23, 2015 6,540 Methodist Sports MOB (2) Greenwood, IN January 28, 2015 10,000 Vadnais Heights MOB Vadnais Heights, MN January 29, 2015 18,422 Minnetonka MOB (3) Minnetonka, MN February 5, 2015 26,000 Jamestown MOB Jamestown, ND February 5, 2015 12,819 Indianapolis South 4 MOBs Greenwood, IN February 13, 2015 17,183 Minnesota Eye MOB Minnetonka, MN February 17, 2015 10,882 Bridgeport Medical Center Lakewood, WA February 27, 2015 13,750 Baylor Cancer Center Dallas, TX February 27, 2015 8,200 $ 171,978 (1) “MOB” means medical office building. (2) The Operating Partnership partially funded the purchase price of this acquisition by issuing a total of 420,963 OP Units valued at approximately $7.3 million in the aggregate on the date of issuance. (3) The Operating Partnership partially funded the purchase price of this acquisition by issuing a total of 44,685 Series A Preferred Units valued at approximately $9.7 million in the aggregate on the date of issuance. |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following unaudited quarterly data has been prepared on the basis of a December 31 year-end. Amounts are in thousands, except for common units and per unit amounts. Quarter Ended 2014 March 31 June 30 September 30 December 31 Total revenues $ 8,032 $ 11,447 $ 14,161 $ 19,694 Operating (loss) income (3,575 ) (626 ) (2,311 ) 1,967 Net (loss) income (3,558 ) (600 ) (2,251 ) 1,991 Net (loss) income attributable to common unitholders (3,624 ) (684 ) (2,327 ) 1,903 Earnings per unit — basic: Net (loss) income available to common unitholder $ (0.15 ) $ (0.02 ) $ (0.06 ) $ 0.04 Weighted average common units outstanding 24,997,474 29,962,046 40,898,015 51,335,748 Earnings per unit — diluted: Net (loss) income available to common unitholder $ (0.15 ) $ (0.02 ) $ (0.06 ) $ 0.04 Weighted average common units outstanding 24,997,474 29,962,046 40,898,015 51,544,832 As a result of the acquisition activity and equity offerings throughout 2014, the quarterly periods are not comparable quarter over quarter. Quarter Ended 2013 March 31 (1) June 30 (1) September 30 December 31 Total revenues $ 3,390 $ 3,437 $ 3,729 $ 6,488 Operating loss (301 ) (283 ) (1,414 ) (638 ) Net loss (301 ) (283 ) (1,416 ) (638 ) Net loss available to common unitholder — — (1,483 ) (648 ) Earnings per unit — basic and diluted: Net income available to common unitsholder $ — $ — $ (0.10 ) $ (0.04 ) Weighted average common units outstanding — — 14,243,850 17,631,224 (1) Because the IPO and the formation transactions were completed on July 24, 2013, the OP had no operations prior to that date. References in these notes to the consolidated and combined financial statements of Physicians Realty L.P. signify the Company for the period from July 24, 2013, the date of completion of the IPO and the formation transactions, and of the Predecessor for all prior periods. |
Organization and Business (Deta
Organization and Business (Details) | Sep. 12, 2014USD ($)shares | Aug. 19, 2014USD ($) | May 27, 2014USD ($)shares | Dec. 11, 2013USD ($)shares | Jul. 24, 2013USD ($)fundpropertyshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) |
Organization and Business | |||||||
Common stock, shares authorized | shares | 1,245,000 | 500,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Aggregate common shares issued pursuant to the IPO | shares | 11,753,597 | ||||||
Net proceeds from IPO, after deducting underwriting discounts and commissions and estimated expenses of the IPO | $ 123,800,000 | ||||||
Debt related to properties acquired | $ 15,283,000 | ||||||
Net proceeds from issuance of shares | $ 350,384,000 | $ 225,920,000 | |||||
Par Value | |||||||
Organization and Business | |||||||
Number of shares | shares | 10,925,000 | 12,650,000 | 9,545,000 | ||||
Shares issued upon exercise of the underwriters' overallotment option | shares | 1,425,000 | 1,650,000 | 1,245,000 | ||||
Net proceeds from issuance of shares | $ 145,700,000 | $ 149,900,000 | $ 103,100,000 | ||||
Maximum | |||||||
Organization and Business | |||||||
Aggregate value of various securities from offering covered under shelf registration statement | $ 900,000,000 | ||||||
Maximum | ATM Program | |||||||
Organization and Business | |||||||
Aggregate offering price of common stock | $ 150,000,000 | ||||||
Operating Partnership | |||||||
Organization and Business | |||||||
Common units of partnership interest (as a percent) | 79.60% | 94.10% | |||||
Operating Partnership | ATM Program | |||||||
Organization and Business | |||||||
Number of shares | shares | 3,576,010 | ||||||
Net proceeds from issuance of shares | $ 55,600,000 | ||||||
Commission on sale of shares | $ 800,000 | ||||||
Operating Partnership | Arrowhead Commons | |||||||
Organization and Business | |||||||
Additional ownership percentage of interest acquired | 50.00% | ||||||
Acquisition price | $ 850,000 | ||||||
Equity interest in acquiree after subsequent acquisition (as a percent) | 100.00% | ||||||
Operating Partnership | Weighted average | ATM Program | |||||||
Organization and Business | |||||||
Price of common share | $ / shares | $ 15.54 | ||||||
Units | |||||||
Organization and Business | |||||||
Number of shares | shares | 10,925,000 | 12,650,000 | 9,545,000 | 11,753,597 | |||
Ziegler Funds Properties | Operating Partnership | |||||||
Organization and Business | |||||||
Number of properties | property | 19 | ||||||
Number of healthcare real estate funds managed | fund | 4 | ||||||
Debt related to properties acquired | $ 84,300,000 | ||||||
Aggregate value from issuance of OP Units | $ 31,600,000 | ||||||
Ziegler Funds Properties | Units | Operating Partnership | |||||||
Organization and Business | |||||||
Number of partnership units issued | shares | 2,744,000 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Principles of Consolidation | |
Ownership interest in consolidated subsidiaries (as a percent) | 100.00% |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details 2) $ in Thousands | Sep. 30, 2014USD ($)shares | Sep. 05, 2014USD ($)shares | Jul. 01, 2014USD ($)shares | May 28, 2014USD ($)shares | May 23, 2014USD ($)shares | Sep. 30, 2013USD ($)shares | Jul. 24, 2013USD ($)propertystateshares | Dec. 31, 2014USD ($)itemshares | Dec. 31, 2013USD ($) |
Noncontrolling Interests | |||||||||
Repayment of outstanding indebtedness | $ 6,549 | $ 41,832 | |||||||
Purchase price | $ 543,436 | ||||||||
Operating partnership units redemption ratio | 1 | ||||||||
New Orleans, LA | |||||||||
Noncontrolling Interests | |||||||||
Purchase price | $ 37,500 | ||||||||
2014 acquisitions | |||||||||
Noncontrolling Interests | |||||||||
Purchase price | $ 103,600 | ||||||||
Number of acquisitions | item | 5 | ||||||||
Jeff-Orleans Medical Development Real Estate, LLC | |||||||||
Noncontrolling Interests | |||||||||
Purchase price | $ 1,300 | ||||||||
Percentage of interest held | 40.00% | ||||||||
Operating Partnership | |||||||||
Noncontrolling Interests | |||||||||
Percentage of interest held | 79.60% | 94.10% | |||||||
Operating Partnership | New Orleans, LA | Units | |||||||||
Noncontrolling Interests | |||||||||
Number of units issued for funding purchase price | shares | 954,877 | ||||||||
Value of units issued for funding purchase price | $ 11,500 | ||||||||
Operating Partnership | 2014 acquisitions | Units | |||||||||
Noncontrolling Interests | |||||||||
Number of units issued for funding purchase price | shares | 950,324 | 272,191 | 576,040 | 96,099 | 147,659 | 2,042,313 | |||
Value of units issued for funding purchase price | $ 13,200 | $ 4,000 | $ 8,300 | $ 1,200 | $ 1,900 | $ 28,600 | |||
Ziegler Funds Properties | Operating Partnership | |||||||||
Noncontrolling Interests | |||||||||
Number of medical office buildings | property | 19 | ||||||||
Number of states | state | 10 | ||||||||
Repayment of outstanding indebtedness | $ 36,900 | ||||||||
Ziegler Funds Properties | Operating Partnership | Units | |||||||||
Noncontrolling Interests | |||||||||
Number of partnership units issued | shares | 2,744,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details 3) $ / shares in Units, $ in Thousands | Dec. 30, 2014$ / shares | Nov. 26, 2014USD ($)building | Sep. 26, 2014$ / shares | Jun. 26, 2014$ / shares | Mar. 27, 2014$ / shares | Jan. 02, 2014USD ($)item | Dec. 30, 2013$ / shares | Sep. 30, 2013$ / shares | Sep. 30, 2013$ / shares | Dec. 31, 2014USD ($)ft²instrumentsitembuildingsegment | Dec. 31, 2013USD ($)instruments | Dec. 31, 2012USD ($) |
Dividends and Distributions | ||||||||||||
Cash dividend declared to common shareholders (in dollars per share) | $ / shares | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.18 | ||||||
Cash dividend declared to common shareholders, which is equivalent to a full quarterly dividend (in dollars per share) | $ / shares | $ 0.225 | |||||||||||
Rental revenue due in excess of amounts currently due from tenants | $ 6,400 | $ 2,000 | ||||||||||
Impairment of Intangible and Long-Lived Assets | ||||||||||||
Impairment on investment properties | 1,750 | 0 | ||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
Purchase price | 543,436 | |||||||||||
Escrow Reserves | ||||||||||||
Escrow Deposit | 1,906 | 1,552 | ||||||||||
Tenant receivables, net | ||||||||||||
Allowance for doubtful accounts | $ 100 | $ 100 | ||||||||||
Segment reporting | ||||||||||||
Number of reportable segments | segment | 1 | |||||||||||
Interest rates swaps | ||||||||||||
Derivatives | ||||||||||||
Number of derivatives been designated as hedges | instruments | 1 | 1,000 | ||||||||||
Notional amount | $ 7,700 | $ 7,900 | ||||||||||
Derivative liability | 200 | 400 | ||||||||||
Gains recognized | $ (200) | $ (200) | $ (100) | |||||||||
Predecessor | ||||||||||||
Impairment of Intangible and Long-Lived Assets | ||||||||||||
Impairment on investment properties | $ 937 | |||||||||||
Mezzanine loan | ||||||||||||
Real Estate Loans Receivable | ||||||||||||
Number of medical office buildings | building | 2 | |||||||||||
Loan to affiliates | $ 6,900 | |||||||||||
Number of special purpose entities, ownership interest in which is used as security for Mezzanine Loan | item | 2 | |||||||||||
Term of loan | 5 years | |||||||||||
Interest rate on loan (as a percent) | 9.00% | |||||||||||
Medical Building | ||||||||||||
Real Estate Loans Receivable | ||||||||||||
Number of medical office buildings | building | 2 | |||||||||||
Area of property after expansion (in square feet) | ft² | 40,000 | |||||||||||
Medical Building | Term loan | ||||||||||||
Real Estate Loans Receivable | ||||||||||||
Loan to affiliates | $ 8,600 | |||||||||||
Interest rate on loan (as a percent) | 9.00% | |||||||||||
Designated as Hedging Instrument [Member] | ||||||||||||
Derivatives | ||||||||||||
Number of derivatives been designated as hedges | item | 0 |
Acquisitions and Dispositions39
Acquisitions and Dispositions (Details) $ in Thousands | Dec. 30, 2014USD ($) | Dec. 18, 2014USD ($) | Nov. 26, 2014USD ($) | Nov. 20, 2014USD ($) | Oct. 29, 2014USD ($) | Sep. 30, 2014USD ($)shares | Sep. 10, 2014USD ($) | Sep. 05, 2014USD ($)shares | Sep. 02, 2014USD ($) | Jul. 31, 2014USD ($) | Jul. 28, 2014USD ($) | Jul. 25, 2014USD ($) | Jul. 01, 2014USD ($)shares | Jun. 30, 2014USD ($) | May 28, 2014USD ($)shares | May 23, 2014USD ($)shares | Apr. 30, 2014USD ($) | Apr. 22, 2014USD ($) | Mar. 28, 2014USD ($) | Feb. 28, 2014USD ($) | Feb. 26, 2014USD ($) | Feb. 19, 2014USD ($) | Sep. 30, 2013USD ($)shares | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2014USD ($)propertiesstateshares | Dec. 31, 2013USD ($) |
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Number of healthcare properties acquired during the period | properties | 61 | ||||||||||||||||||||||||||||||||
Number of states in which operating healthcare properties and land parcel located | state | 15 | ||||||||||||||||||||||||||||||||
Acquisition price | $ 543,436 | ||||||||||||||||||||||||||||||||
Acquisition costs capitalized | 1,700 | ||||||||||||||||||||||||||||||||
Acquisition costs expensed | 10,897 | $ 1,938 | |||||||||||||||||||||||||||||||
Revenue | $ 19,694 | $ 14,161 | $ 11,447 | $ 8,032 | $ 6,488 | $ 3,729 | $ 3,437 | $ 3,390 | 53,334 | $ 17,045 | |||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||||||||||||||||||||||
Land | 53,687 | 53,687 | |||||||||||||||||||||||||||||||
Building and improvements | 451,691 | 451,691 | |||||||||||||||||||||||||||||||
Investment in unconsolidated entity | 1,300 | 1,300 | |||||||||||||||||||||||||||||||
Issuance of OP units | (28,589) | (28,589) | |||||||||||||||||||||||||||||||
Debt assumed | (15,283) | (15,283) | |||||||||||||||||||||||||||||||
Lease inducement | 1,532 | 1,532 | |||||||||||||||||||||||||||||||
Derivative liability | (197) | (197) | |||||||||||||||||||||||||||||||
Contingent consideration | (840) | (840) | |||||||||||||||||||||||||||||||
Leasehold interest | 759 | 759 | |||||||||||||||||||||||||||||||
Receivable | 640 | 640 | |||||||||||||||||||||||||||||||
Net assets acquired | 502,659 | 502,659 | |||||||||||||||||||||||||||||||
In-place leases | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||||||||||||||||||||||
In-place leases | 35,720 | 35,720 | |||||||||||||||||||||||||||||||
Above market leases | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||||||||||||||||||||||
In-place leases | 5,270 | 5,270 | |||||||||||||||||||||||||||||||
Below market in-place lease | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||||||||||||||||||||||
Intangible leases | (2,330) | (2,330) | |||||||||||||||||||||||||||||||
Above market ground lease | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||||||||||||||||||||||
Intangible leases | (701) | (701) | |||||||||||||||||||||||||||||||
San Antonio, TX | Surgical Hospital | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 25,556 | ||||||||||||||||||||||||||||||||
San Antonio, TX | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 6,800 | ||||||||||||||||||||||||||||||||
Atlanta, GA | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 36,726 | $ 20,800 | |||||||||||||||||||||||||||||||
Sarasota, FL | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 17,486 | ||||||||||||||||||||||||||||||||
Fort Worth, TX | LTACH | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 27,160 | ||||||||||||||||||||||||||||||||
Pittsburgh, PA | LTACH | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 12,840 | ||||||||||||||||||||||||||||||||
Carlisle & Wormleyburg, PA | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 9,208 | ||||||||||||||||||||||||||||||||
South Bend, IN | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 14,900 | ||||||||||||||||||||||||||||||||
Grenada, MS | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 7,100 | ||||||||||||||||||||||||||||||||
Jackson, MS | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 16,700 | ||||||||||||||||||||||||||||||||
Carmel, IN | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 4,664 | ||||||||||||||||||||||||||||||||
Bloomington, IN | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 4,783 | ||||||||||||||||||||||||||||||||
Bloomington, IN | Landmark Medical Portfolio (Premier) 3 MOBs | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 23,837 | ||||||||||||||||||||||||||||||||
Bloomington, IN | Eye Center | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 12,174 | ||||||||||||||||||||||||||||||||
Oshkosh, WI | Surgical Center | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | 8,500 | ||||||||||||||||||||||||||||||||
Monroe, NC | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 7,750 | ||||||||||||||||||||||||||||||||
Carlisle, PA | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 4,500 | ||||||||||||||||||||||||||||||||
Monroe, MI | Surgical Institute | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 6,000 | ||||||||||||||||||||||||||||||||
Lady Lake, FL | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 10,600 | ||||||||||||||||||||||||||||||||
Mansfield, TX | Surgical Center | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 8,500 | ||||||||||||||||||||||||||||||||
Troy, MI | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 46,500 | ||||||||||||||||||||||||||||||||
El Paso, TX | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 46,235 | ||||||||||||||||||||||||||||||||
Columbus, OH | Cancer Center | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | 36,600 | ||||||||||||||||||||||||||||||||
Orient, OH | Medical Center | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | 6,785 | ||||||||||||||||||||||||||||||||
Columbus, OH And Westerville, OH | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 24,500 | ||||||||||||||||||||||||||||||||
Harrisburg, PA | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 23,100 | ||||||||||||||||||||||||||||||||
Columbus, GA And Phenix City, AL | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 27,997 | ||||||||||||||||||||||||||||||||
Middletown, NY | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 14,399 | ||||||||||||||||||||||||||||||||
Danville, IL | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 10,300 | ||||||||||||||||||||||||||||||||
2014 acquisitions | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | 103,600 | ||||||||||||||||||||||||||||||||
Revenue | 26,000 | ||||||||||||||||||||||||||||||||
Net (loss) income | $ 3,700 | ||||||||||||||||||||||||||||||||
New Orleans, LA | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 37,500 | ||||||||||||||||||||||||||||||||
New Orleans, LA | Medical Building | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 10,500 | ||||||||||||||||||||||||||||||||
Jackson, TN | Surgical Center | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Acquisition price | $ 9,936 | ||||||||||||||||||||||||||||||||
Physicians Realty LP | 2014 acquisitions | Units | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Number of units issued for funding purchase price | shares | 950,324 | 272,191 | 576,040 | 96,099 | 147,659 | 2,042,313 | |||||||||||||||||||||||||||
Value of units issued for funding purchase price | $ 13,200 | $ 4,000 | $ 8,300 | $ 1,200 | $ 1,900 | $ 28,600 | $ 13,200 | $ 28,600 | |||||||||||||||||||||||||
Physicians Realty LP | New Orleans, LA | Units | |||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | |||||||||||||||||||||||||||||||||
Number of units issued for funding purchase price | shares | 954,877 | ||||||||||||||||||||||||||||||||
Value of units issued for funding purchase price | $ 11,500 | $ 11,500 |
Acquisitions and Dispositions40
Acquisitions and Dispositions (Detail 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Unaudited Pro Forma Financial Information | ||
Revenue | $ 81,507 | $ 71,183 |
Net income | 16,883 | 11,461 |
Net income available to common shareholders | $ 16,883 | $ 11,461 |
Earnings per share - basic (in dollars per share) | $ 0.31 | $ 0.21 |
Earnings per share - diluter (in dollars per share) | $ 0.31 | $ 0.21 |
Common units issued and outstanding | 53,831,202 | 53,831,202 |
Intangibles (Details)
Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2014 | Dec. 31, 2013 |
Intangibles | ||
Cost | $ 72,985 | $ 31,236 |
Accumulated Amortization | (12,796) | (8,128) |
Total | 60,189 | 23,108 |
Liability | ||
Cost | 3,031 | |
Accumulated Amortization | (160) | |
Total | 2,871 | |
In-place leases | ||
Intangibles | ||
Cost | 64,777 | 29,056 |
Accumulated Amortization | (12,213) | (8,080) |
Total | 52,564 | 20,976 |
Above market leases | ||
Intangibles | ||
Cost | 7,449 | 2,180 |
Accumulated Amortization | (578) | (48) |
Total | 6,871 | $ 2,132 |
Leasehold interest | ||
Intangibles | ||
Cost | 759 | |
Accumulated Amortization | (5) | |
Total | 754 | |
Below market in-place lease | ||
Liability | ||
Below market lease, cost | 2,330 | |
Below market lease, accumulated amortization | (156) | |
Below Market Lease, Net | 2,174 | |
Above market ground lease | ||
Liability | ||
Cost | 701 | |
Accumulated Amortization | (4) | |
Total | $ 697 |
Intangibles (Details 2)
Intangibles (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
In-place leases | |||
Intangibles | |||
Amortization expense | $ 4,133 | $ 1,252 | $ 900 |
Above market leases | |||
Intangibles | |||
Decrease of rental income | 530 | $ 48 | |
Leasehold interest | |||
Intangibles | |||
Decrease of rental income | 5 | ||
Below market in-place lease | |||
Intangibles | |||
Increase of rental income | 156 | ||
Above market ground lease | |||
Intangibles | |||
Decrease of operating expense | $ 4 |
Intangibles (Details 3)
Intangibles (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Future aggregate net amortization of acquired lease intangibles (Net Decrease in Revenue) | |
2,015 | $ (667) |
2,016 | (689) |
2,017 | (567) |
2,018 | (560) |
2,019 | (458) |
Thereafter | (2,511) |
Total | (5,452) |
Future aggregate net amortization of acquired lease intangibles (Net Increase in Expenses) | |
2,015 | 7,446 |
2,016 | 7,384 |
2,017 | 7,165 |
2,018 | 6,628 |
2,019 | 4,625 |
Thereafter | 18,618 |
Total | $ 51,866 |
Weighted average amortization period for lease intangibles | 9 years |
Weighted average amortization period for lease intangible liability | 17 years |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets, Unclassified [Abstract] | ||
Straight line rent receivable | $ 6,431 | $ 2,018 |
Lease inducements, net | 2,845 | 1,509 |
Escrows | 1,906 | 1,552 |
Earnest deposits | 2,343 | |
Prepaid expenses and other | 2,281 | 822 |
Total | $ 15,806 | $ 5,901 |
Debt (Details)
Debt (Details) | 12 Months Ended | |
Dec. 31, 2014USD ($)itemproperty | Dec. 31, 2013USD ($) | |
Debt | ||
Mortgage debt | $ 77,091,000 | $ 40,716,000 |
Unsecured Debt | 134,144,000 | |
Total Debt | 216,105,000 | 42,821,000 |
Unamortized deferred financing cost | (4,870,000) | (2,105,000) |
Total debt | 211,235,000 | 40,716,000 |
Mortgages [Member] | ||
Debt | ||
Mortgage debt | 78,105,000 | 42,821,000 |
Credit Agreement | ||
Debt | ||
Unsecured Debt | 138,000,000 | |
Maximum borrowing capacity | $ 400,000,000 | |
Credit Agreement | LIBOR | ||
Debt | ||
Variable rate basis | LIBOR | |
Margin (as a percent) | 1.50% | |
Mortgage notes, bearing fixed interest from 4.71% to 6.58% | Mortgages [Member] | ||
Debt | ||
Mortgage debt | $ 73,706,000 | $ 38,288,000 |
Weighted average interest rate (as a percent) | 5.26% | |
Number of properties included in collateralized | item | 9 | |
Net book value of properties included in the collateralized | $ 118,247,000 | |
Mortgage notes, bearing fixed interest from 4.71% to 6.58% | Mortgages [Member] | Minimum | ||
Debt | ||
Interest rate (as a percent) | 4.71% | 4.71% |
Mortgage notes, bearing fixed interest from 4.71% to 6.58% | Mortgages [Member] | Maximum | ||
Debt | ||
Interest rate (as a percent) | 6.58% | 6.58% |
Mortgage note, bearing variable interest of LIBOR plus 2.75% | Mortgages [Member] | ||
Debt | ||
Mortgage debt | $ 4,399,000 | $ 4,533,000 |
Number of properties included in collateralized | property | 1 | |
Net book value of properties included in the collateralized | $ 6,249,000 | |
Mortgage note, bearing variable interest of LIBOR plus 2.75% | Mortgages [Member] | LIBOR | ||
Debt | ||
Variable rate basis | LIBOR | |
Variable interest (as a percent) | 2.75% |
Debt (Details 2)
Debt (Details 2) - USD ($) | Sep. 18, 2014 | Dec. 31, 2014 |
Operating Partnership | Base Rate Loans | Consolidated Leverage Ratio, 35% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 35.00% | |
Margin (as a percent) | 0.50% | |
Operating Partnership | Base Rate Loans | Consolidated Leverage Ratio, >35% and 45% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 35.00% | |
Consolidated leverage ratio, maximum (as a percent) | 45.00% | |
Margin (as a percent) | 0.65% | |
Operating Partnership | Base Rate Loans | Consolidated Leverage Ratio, >45% and 45% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 45.00% | |
Margin (as a percent) | 0.75% | |
Operating Partnership | Base Rate Loans | Consolidated Leverage Ratio, >45% and 50% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 45.00% | |
Consolidated leverage ratio, maximum (as a percent) | 50.00% | |
Margin (as a percent) | 0.85% | |
Operating Partnership | Base Rate Loans | Consolidated Leverage Ratio, >50% and 55% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 50.00% | |
Consolidated leverage ratio, maximum (as a percent) | 55.00% | |
Margin (as a percent) | 1.00% | |
Operating Partnership | Base Rate Loans | Consolidated Leverage Ratio, >55% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 55.00% | |
Margin (as a percent) | 1.20% | |
Operating Partnership | LIBOR | Adjusted LIBOR Rate Loans and Letter of Credit | Consolidated Leverage Ratio, 35% | ||
Debt | ||
Consolidated leverage ratio, maximum (as a percent) | 35.00% | |
Variable rate basis | LIBOR | |
Margin (as a percent) | 1.50% | |
Operating Partnership | LIBOR | Adjusted LIBOR Rate Loans and Letter of Credit | Consolidated Leverage Ratio, >35% and 45% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 35.00% | |
Consolidated leverage ratio, maximum (as a percent) | 45.00% | |
Variable rate basis | LIBOR | |
Margin (as a percent) | 1.65% | |
Operating Partnership | LIBOR | Adjusted LIBOR Rate Loans and Letter of Credit | Consolidated Leverage Ratio, >45% and 45% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 45.00% | |
Consolidated leverage ratio, maximum (as a percent) | 45.00% | |
Variable rate basis | LIBOR | |
Margin (as a percent) | 1.75% | |
Operating Partnership | LIBOR | Adjusted LIBOR Rate Loans and Letter of Credit | Consolidated Leverage Ratio, >45% and 50% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 45.00% | |
Consolidated leverage ratio, maximum (as a percent) | 50.00% | |
Variable rate basis | LIBOR | |
Margin (as a percent) | 1.85% | |
Operating Partnership | LIBOR | Adjusted LIBOR Rate Loans and Letter of Credit | Consolidated Leverage Ratio, >50% and 55% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 50.00% | |
Consolidated leverage ratio, maximum (as a percent) | 55.00% | |
Variable rate basis | LIBOR | |
Margin (as a percent) | 2.00% | |
Operating Partnership | LIBOR | Adjusted LIBOR Rate Loans and Letter of Credit | Consolidated Leverage Ratio, >55% | ||
Debt | ||
Consolidated leverage ratio, minimum (as a percent) | 55.00% | |
Variable rate basis | LIBOR | |
Margin (as a percent) | 2.20% | |
Prior Credit Agreement | Operating Partnership | ||
Debt | ||
Maximum borrowing capacity | $ 200,000,000 | |
Credit Agreement | ||
Debt | ||
Maximum borrowing capacity | $ 400,000,000 | |
Amount outstanding | 138,000,000 | |
Current borrowing capacity | $ 189,000,000 | |
Credit Agreement | LIBOR | ||
Debt | ||
Variable rate basis | LIBOR | |
Margin (as a percent) | 1.50% | |
Credit Agreement | Operating Partnership | ||
Debt | ||
Maximum borrowing capacity | $ 400,000,000 | |
Term of extension option | 1 year | |
Weighted average interest rate (as a percent) | 1.68% | |
Credit Agreement | Operating Partnership | LIBOR | ||
Debt | ||
Variable rate basis | LIBOR | |
Credit Agreement | Operating Partnership | Swingline loan | ||
Debt | ||
Maximum borrowing capacity as a percentage of maximum principal amount | 10.00% | |
Minimum | Credit Agreement | Operating Partnership | ||
Debt | ||
Unused fee (as a percent) | 0.15% | |
Minimum | Credit Agreement | Operating Partnership | LIBOR | ||
Debt | ||
Margin (as a percent) | 1.50% | |
Maximum | Credit Agreement | Operating Partnership | ||
Debt | ||
Maximum borrowing capacity | $ 750,000,000 | |
Unused fee (as a percent) | 0.25% | |
Maximum | Credit Agreement | Operating Partnership | LIBOR | ||
Debt | ||
Margin (as a percent) | 2.20% | |
Maximum | Credit Agreement | Operating Partnership | Accordion feature | ||
Debt | ||
Increase in maximum borrowing capacity | $ 350,000,000 |
Debt (Details 3)
Debt (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 5,800 | $ 3,900 |
Scheduled principal payments | ||
2,015 | 1,864 | |
2,016 | 9,421 | |
2,017 | 28,750 | |
2,018 | 139,100 | |
2,019 | 19,906 | |
Thereafter | 17,064 | |
Total Payments | $ 216,105 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 07, 2014 | Jul. 24, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Weighted Average Grant Date Fair Value | ||||
Non-cash share compensation | $ 2,422 | $ 433 | ||
2013 Plan | Restricted common shares | ||||
Stock-based compensation | ||||
Maximum number of shares authorized | 600,000 | |||
Increase in number of common shares authorized for issuance under Physicians Realty Trust 2013 Equity Incentive Plan | 1,850,000 | |||
Shares available for grant | 2,450,000 | |||
Grant date value (in dollars) | $ 2,900 | $ 2,100 | ||
Vesting period | 3 years | |||
Shares | ||||
Non-vested at the beginning of the period | 250,000 | |||
Granted (in shares) | 250,000 | 152,987 | ||
Vested (in shares) | (61,179) | |||
Share repurchase (in shares) | (22,154) | |||
Non-vested at the end of the period | 319,654 | 250,000 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested at beginning of period | $ 11.50 | |||
Grant date value (in dollars per share) | $ 11.50 | 13.79 | ||
Vested (in dollars per share) | 11.50 | |||
Share repurchase (in dollars per share) | 14.49 | |||
Non-vested at the end of period | $ 12.60 | $ 11.50 | ||
Non-cash share compensation | $ 2,200 | $ 400 | ||
Unrecognized compensation expense | $ 2,400 | $ 2,500 | ||
Initial estimated cumulative forfeiture rate (as a percent) | 0.00% |
Stock-based Compensation (Det49
Stock-based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation | |||
Non-cash share compensation | $ 2,422 | $ 433 | |
2013 Plan | Restricted Share Units | |||
Stock-based compensation | |||
Granted (in shares) | 55,680 | 55,680 | |
Non-vested at the end of the period | 55,680 | ||
Grant date value (in dollars per share) | $ 19.25 | $ 16.94 | |
Weighted average grant date fair value | $ 16.94 | ||
Vesting period | 3 years | ||
Number of dividend equivalent included in award | 1 | ||
Non-cash share compensation | $ 300 | ||
Unrecognized compensation expense | $ 700 | ||
Performance conditions grant date fair value (in dollars per share) | $ 13.47 | ||
Share based compensation fair value assumptions | |||
Volatility, minimum (as a percent) | 18.80% | ||
Volatility, maximum (as a percent) | 34.20% | ||
Expected term in years | 2 years 9 months 29 days | ||
Risk-free rate | 0.65% | ||
Stock price (per share) | $ 13.47 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014USD ($)item | Dec. 31, 2013USD ($) | |
Interest rates swaps | ||
Fair value measurements | ||
Number of swap agreement that are not traded on exchange | item | 1 | |
Nonrecurring basis | Investment properties | ||
Fair value measurements | ||
Total Gains (Losses) | $ (1,750) | |
Nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Investment properties | ||
Fair value measurements | ||
Assets fair value | 1,529 | |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Investment properties | ||
Fair value measurements | ||
Assets fair value | $ 1,272 | |
Carrying Amount | Nonrecurring basis | Investment properties | ||
Fair value measurements | ||
Assets fair value | $ 4,551 |
Fair Value Measurements (Deta51
Fair Value Measurements (Details 2) - Nonrecurring basis - Significant Unobservable Inputs (Level 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Investment properties | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair value | $ 1,272 |
Discounted cash flow | |
Unobservable Inputs | |
Discount rate (as a percent) | 11.00% |
Capitalization rate (as a percent) | 8.00% |
Fair Value Measurements (Deta52
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Dec. 31, 2014 | Dec. 31, 2013 |
Fair value of other financial instruments | ||
Real estate loans receivable | $ 15,876 | |
Credit facility | (134,144) | |
Carrying Amount | ||
Fair value of other financial instruments | ||
Real estate loans receivable | 15,876 | |
Credit facility | (138,000) | |
Mortgage debt | (78,105) | $ (42,821) |
Carrying Amount | Interest rates swaps | ||
Fair value of other financial instruments | ||
Derivative liabilities | (233) | (397) |
Fair Value | ||
Fair value of other financial instruments | ||
Real estate loans receivable | 15,876 | |
Credit facility | (138,000) | |
Mortgage debt | (78,642) | (44,130) |
Fair Value | Interest rates swaps | Recurring basis | ||
Fair value of other financial instruments | ||
Derivative liabilities | $ (233) | $ (397) |
Tenant Operating Leases (Detail
Tenant Operating Leases (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Future minimum rental payments on non-cancelable leases | |
2,015 | $ 65,905 |
2,016 | 65,323 |
2,017 | 65,179 |
2,018 | 62,637 |
2,019 | 59,464 |
Thereafter | 418,400 |
Total | $ 736,908 |
Rent Expense (Details)
Rent Expense (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014USD ($)properties | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Leases [Abstract] | |||
Number of properties on which rights to parking structure is leased | properties | 1 | ||
Number of properties pursuant to ground and parking leases | properties | 7 | ||
Maximum lease terms | 67 years | ||
Future minimum lease obligations under non-cancelable ground leases | |||
2,015 | $ 1,426 | ||
2,016 | 1,442 | ||
2,017 | 1,480 | ||
2,018 | 1,521 | ||
2,019 | 1,564 | ||
Thereafter | 23,317 | ||
Total | 30,750 | ||
Rent expenses for parking and ground leases | $ 900 | $ 20 | $ 20 |
Earnings Per Unit (Details)
Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator for earnings per share - basic and diluted: | |||||||||||
Net loss | $ 1,991 | $ (2,251) | $ (600) | $ (3,558) | $ (638) | $ (1,416) | $ (283) | $ (301) | $ (2,060) | $ (4,418) | $ (2,636) |
Less: Net loss attributable to Predecessor | 0 | 576 | |||||||||
Less: Net income attributable to noncontrolling interests — partially owned properties | (314) | (71) | |||||||||
Numerator for earnings per unit — basic and diluted | $ 1,903 | $ (2,327) | $ (684) | $ (3,624) | $ (648) | $ (1,483) | $ (4,732) | $ (2,131) | |||
Denominator for earnings per unit - basic and diluted units: | 17,631,224 | 14,243,850 | 36,881,712 | 16,179,492 | |||||||
Basic and diluted (in dollars per share) | $ (0.04) | $ (0.10) | $ (0.12) | $ (0.13) | |||||||
2013 Plan | Restricted Stock And Restricted Stock Units [Member] | |||||||||||
Numerator for earnings per share - basic and diluted: | |||||||||||
Outstanding non-vested shares | 375,334 | 250,000 | 250,000 | 375,334 | 250,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Ziegler - USD ($) $ in Thousands | Aug. 19, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 |
Related Party Transactions | |||||
Shares issued to related party | 124,913 | ||||
Shared service fee | |||||
Related Party Transactions | |||||
Fees charged | $ 400 | $ 300 | |||
Predecessor | |||||
Related Party Transactions | |||||
Annual management fee as a percentage of total capital commitments | 2.00% | 2.00% | |||
Amount of one-time payment which may be paid in cash or in unrestricted shares | $ 1,800 | ||||
Amount of one-time payment which may be paid in cash or in Amount of one-time payment paid in unrestricted shares | $ 1,800 | ||||
Predecessor | Management fees | |||||
Related Party Transactions | |||||
Fees charged | $ 500 | $ 1,000 | |||
Predecessor | Other fees | |||||
Related Party Transactions | |||||
Fees charged | $ 30 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 27, 2015 | Feb. 17, 2015 | Feb. 13, 2015 | Feb. 05, 2015 | Jan. 29, 2015 | Jan. 28, 2015 | Jan. 23, 2015 | Jan. 22, 2015 | Jan. 21, 2015 | Sep. 12, 2014 | May 27, 2014 | Dec. 11, 2013 | Jul. 24, 2013 | Feb. 27, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent events | |||||||||||||||||
Purchase price | $ 543,436,000 | ||||||||||||||||
Net proceeds from issuance of shares | $ 350,384,000 | $ 225,920,000 | |||||||||||||||
Subsequent events | Credit Agreement | |||||||||||||||||
Subsequent events | |||||||||||||||||
Repayments of unsecured debt | $ 138,000,000 | ||||||||||||||||
Subsequent events | Operating Partnership | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 171,978,000 | ||||||||||||||||
Number of shares | 18,975,000 | ||||||||||||||||
Shares issued upon exercise of the underwriters' overallotment option | 2,475,000 | ||||||||||||||||
Net proceeds from issuance of shares | $ 297,200,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Edina, MN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 14,190,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Savage, MN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | 12,800,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Crystal, MN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | 14,782,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Chanhassen, MN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 6,410,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Columbus, GA | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 6,540,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Greenwood, IN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 17,183,000 | $ 10,000,000 | |||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Vadnais Heights, MN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 18,422,000 | ||||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Minnetonka, MN | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 10,882,000 | $ 26,000,000 | |||||||||||||||
Subsequent events | Medical Building | Operating Partnership | Jamestown, ND | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 12,819,000 | ||||||||||||||||
Subsequent events | Medical Center | Operating Partnership | Lakewood, WA | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 13,750,000 | ||||||||||||||||
Subsequent events | Cancer Center | Operating Partnership | Dallas, TX | |||||||||||||||||
Subsequent events | |||||||||||||||||
Purchase price | $ 8,200,000 | ||||||||||||||||
Units | |||||||||||||||||
Subsequent events | |||||||||||||||||
Number of shares | 10,925,000 | 12,650,000 | 9,545,000 | 11,753,597 | |||||||||||||
Units | Subsequent events | |||||||||||||||||
Subsequent events | |||||||||||||||||
Number of shares | 18,975,000 | ||||||||||||||||
Units | Subsequent events | Operating Partnership | |||||||||||||||||
Subsequent events | |||||||||||||||||
Number of units issued for funding purchase price | 420,963 | ||||||||||||||||
Value of units issued for funding purchase price | $ 7,300,000 | ||||||||||||||||
Units | Subsequent events | Operating Partnership | Series A Preferred units | |||||||||||||||||
Subsequent events | |||||||||||||||||
Number of units issued for funding purchase price | 44,685 | ||||||||||||||||
Value of units issued for funding purchase price | $ 9,700,000 | ||||||||||||||||
ATM Program | Operating Partnership | |||||||||||||||||
Subsequent events | |||||||||||||||||
Number of shares | 3,576,010 | ||||||||||||||||
Net proceeds from issuance of shares | $ 55,600,000 | ||||||||||||||||
Commission on sale of shares | $ 800,000 | ||||||||||||||||
ATM Program | Operating Partnership | Weighted average | |||||||||||||||||
Subsequent events | |||||||||||||||||
Price of common share | $ 15.54 | ||||||||||||||||
ATM Program | Subsequent events | |||||||||||||||||
Subsequent events | |||||||||||||||||
Number of shares | 247,397 | ||||||||||||||||
Net proceeds from issuance of shares | $ 4,200,000 | ||||||||||||||||
Commission on sale of shares | $ 55,696 | ||||||||||||||||
Shares available under the Sales agreement | 90,200,000 | ||||||||||||||||
ATM Program | Subsequent events | Weighted average | |||||||||||||||||
Subsequent events | |||||||||||||||||
Price of common share | $ 16.96 |
Quarterly Data (Details)
Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 19,694 | $ 14,161 | $ 11,447 | $ 8,032 | $ 6,488 | $ 3,729 | $ 3,437 | $ 3,390 | $ 53,334 | $ 17,045 | |
Operating (loss) income | 1,967 | (2,311) | (626) | (3,575) | (638) | (1,414) | (283) | (301) | (4,545) | (2,634) | |
Net (loss) income | 1,991 | (2,251) | (600) | (3,558) | (638) | (1,416) | $ (283) | $ (301) | $ (2,060) | (4,418) | (2,636) |
Net loss attributable to common shareholders | $ 1,903 | $ (2,327) | $ (684) | $ (3,624) | $ (648) | $ (1,483) | $ (4,732) | $ (2,131) | |||
Earnings per share - basic: | |||||||||||
Net (loss) income available to common shareholder (in dollars per share) | $ 0.04 | $ (0.06) | $ (0.02) | $ (0.15) | |||||||
Weighted average common shares outstanding | 51,335,748 | 40,898,015 | 29,962,046 | 24,997,474 | |||||||
Earnings per share - diluted: | |||||||||||
Net (loss) income available to common shareholder (in dollars per share) | $ 0.04 | $ (0.06) | $ (0.02) | $ (0.15) | |||||||
Weighted average common shares outstanding | 51,544,832 | 40,898,015 | 29,962,046 | 24,997,474 | |||||||
Earnings per share - basic and diluted: | |||||||||||
Net income available to common unitsholder (in dollars per share) | $ (0.04) | $ (0.10) | $ (0.12) | $ (0.13) | |||||||
Weighted average common shares outstanding - Basic and diluted | 17,631,224 | 14,243,850 | 36,881,712 | 16,179,492 |
SCHEDULE III - REAL ESTATE AN59
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 78,105 | |||
Initial Cost to Company | ||||
Land | 79,334 | |||
Buildings and Improvements | 643,802 | |||
Cost Capitalized Subsequent to Acquisitions | 5,898 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 79,334 | |||
Buildings and Improvements | 649,700 | |||
Total | 729,034 | $ 224,730 | $ 111,149 | $ 124,333 |
Accumulated Depreciation | (32,772) | $ (20,299) | $ (16,495) | $ (14,484) |
Arrowhead Commons, Phoenix, AZ | ||||
Initial Cost to Company | ||||
Land | 740 | |||
Buildings and Improvements | 2,551 | |||
Cost Capitalized Subsequent to Acquisitions | 1 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 740 | |||
Buildings and Improvements | 2,552 | |||
Total | 3,292 | |||
Accumulated Depreciation | $ (366) | |||
Life on Which Building Depreciation in Income Statement is Computed | 46 years | |||
Aurora Medical Office Building, Green Bay, WI | ||||
Initial Cost to Company | ||||
Land | $ 500 | |||
Buildings and Improvements | 1,566 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 500 | |||
Buildings and Improvements | 1,566 | |||
Total | 2,066 | |||
Accumulated Depreciation | $ (149) | |||
Life on Which Building Depreciation in Income Statement is Computed | 50 years | |||
Austell Medical Office Building, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | $ 289 | |||
Buildings and Improvements | 1,992 | |||
Cost Capitalized Subsequent to Acquisitions | 313 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 289 | |||
Buildings and Improvements | 2,305 | |||
Total | 2,594 | |||
Accumulated Depreciation | $ (397) | |||
Life on Which Building Depreciation in Income Statement is Computed | 36 years | |||
Canton Medical Office Building, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 6,207 | |||
Initial Cost to Company | ||||
Land | 710 | |||
Buildings and Improvements | 7,225 | |||
Cost Capitalized Subsequent to Acquisitions | 97 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 710 | |||
Buildings and Improvements | 7,322 | |||
Total | 8,032 | |||
Accumulated Depreciation | $ (1,851) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Decatur Medical Office Building, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | $ 740 | |||
Buildings and Improvements | 2,604 | |||
Cost Capitalized Subsequent to Acquisitions | 45 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 740 | |||
Buildings and Improvements | 2,649 | |||
Total | 3,389 | |||
Accumulated Depreciation | $ (679) | |||
Life on Which Building Depreciation in Income Statement is Computed | 28 years | |||
El Paso Medical Office Building, El Paso, TX | ||||
Initial Cost to Company | ||||
Land | $ 860 | |||
Buildings and Improvements | 2,866 | |||
Cost Capitalized Subsequent to Acquisitions | 357 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 860 | |||
Buildings and Improvements | 3,223 | |||
Total | 4,083 | |||
Accumulated Depreciation | $ (1,293) | |||
Life on Which Building Depreciation in Income Statement is Computed | 21 years | |||
Farmington Professional Pavillion, Detroit, MI | ||||
Initial Cost to Company | ||||
Land | $ 580 | |||
Buildings and Improvements | 1,793 | |||
Cost Capitalized Subsequent to Acquisitions | 87 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 580 | |||
Buildings and Improvements | 1,880 | |||
Total | 2,460 | |||
Accumulated Depreciation | $ (1,081) | |||
Life on Which Building Depreciation in Income Statement is Computed | 15 years | |||
Firehouse Square, Milwaukee, WI | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 2,765 | |||
Initial Cost to Company | ||||
Land | 1,120 | |||
Buildings and Improvements | 2,768 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,120 | |||
Buildings and Improvements | 2,768 | |||
Total | 3,888 | |||
Accumulated Depreciation | $ (684) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Hackley Medical Center, Grand Rapids, MI | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 5,397 | |||
Initial Cost to Company | ||||
Land | 1,840 | |||
Buildings and Improvements | 6,402 | |||
Cost Capitalized Subsequent to Acquisitions | 24 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,840 | |||
Buildings and Improvements | 6,426 | |||
Total | 8,266 | |||
Accumulated Depreciation | $ (1,674) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Ingham Regional Medical Center, Lansing, MI | ||||
Initial Cost to Company | ||||
Land | $ 310 | |||
Buildings and Improvements | 2,893 | |||
Cost Capitalized Subsequent to Acquisitions | (1,134) | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 310 | |||
Buildings and Improvements | 1,759 | |||
Total | 2,069 | |||
Accumulated Depreciation | $ (800) | |||
Life on Which Building Depreciation in Income Statement is Computed | 39 years | |||
Meadow View Professional Center, Kingsport, TN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 10,410 | |||
Initial Cost to Company | ||||
Land | 2,270 | |||
Buildings and Improvements | 11,344 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,270 | |||
Buildings and Improvements | 11,344 | |||
Total | 13,614 | |||
Accumulated Depreciation | $ (2,923) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Mid Coast Hospital Office Building, Portland, ME | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 7,869 | |||
Initial Cost to Company | ||||
Buildings and Improvements | 11,247 | |||
Cost Capitalized Subsequent to Acquisitions | 8 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Buildings and Improvements | 11,255 | |||
Total | 11,255 | |||
Accumulated Depreciation | $ (2,477) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
New Albany Professional Building, Columbus, OH | ||||
Initial Cost to Company | ||||
Land | $ 237 | |||
Buildings and Improvements | 2,767 | |||
Cost Capitalized Subsequent to Acquisitions | 20 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 237 | |||
Buildings and Improvements | 2,787 | |||
Total | 3,024 | |||
Accumulated Depreciation | $ (472) | |||
Life on Which Building Depreciation in Income Statement is Computed | 42 years | |||
Northpark Trail, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | $ 839 | |||
Buildings and Improvements | 1,245 | |||
Cost Capitalized Subsequent to Acquisitions | 235 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 839 | |||
Buildings and Improvements | 1,480 | |||
Total | 2,319 | |||
Accumulated Depreciation | $ (539) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Remington Medical Commons, Chicago, IL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 4,399 | |||
Initial Cost to Company | ||||
Land | 895 | |||
Buildings and Improvements | 6,499 | |||
Cost Capitalized Subsequent to Acquisitions | 319 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 895 | |||
Buildings and Improvements | 6,818 | |||
Total | 7,713 | |||
Accumulated Depreciation | $ (1,464) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Stonecreek Family Health Center, Columbus, OH | ||||
Initial Cost to Company | ||||
Land | $ 459 | |||
Buildings and Improvements | 1,898 | |||
Cost Capitalized Subsequent to Acquisitions | (153) | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 459 | |||
Buildings and Improvements | 1,745 | |||
Total | 2,204 | |||
Accumulated Depreciation | $ (687) | |||
Life on Which Building Depreciation in Income Statement is Computed | 23 years | |||
Summit Healthplex, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | $ 2,633 | |||
Buildings and Improvements | 15,576 | |||
Cost Capitalized Subsequent to Acquisitions | 4,412 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,633 | |||
Buildings and Improvements | 19,988 | |||
Total | 22,621 | |||
Accumulated Depreciation | $ (3,735) | |||
Life on Which Building Depreciation in Income Statement is Computed | 44 years | |||
Valley West Hospital Medical Office Building, Chicago, IL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 4,878 | |||
Initial Cost to Company | ||||
Buildings and Improvements | 6,275 | |||
Cost Capitalized Subsequent to Acquisitions | 611 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Buildings and Improvements | 6,886 | |||
Total | 6,886 | |||
Accumulated Depreciation | $ (1,588) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
East El Paso MOB, El Paso, TX | ||||
Initial Cost to Company | ||||
Land | $ 710 | |||
Buildings and Improvements | 4,500 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 710 | |||
Buildings and Improvements | 4,500 | |||
Total | 5,210 | |||
Accumulated Depreciation | $ (171) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
East El Paso Surgery Center, El Paso, TX | ||||
Initial Cost to Company | ||||
Land | $ 3,070 | |||
Buildings and Improvements | 23,627 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 3,070 | |||
Buildings and Improvements | 23,627 | |||
Total | 26,697 | |||
Accumulated Depreciation | $ (875) | |||
Life on Which Building Depreciation in Income Statement is Computed | 36 years | |||
LifeCare Plano LTACH, Plano, TX | ||||
Initial Cost to Company | ||||
Land | $ 3,370 | |||
Buildings and Improvements | 11,689 | |||
Cost Capitalized Subsequent to Acquisitions | 455 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 3,370 | |||
Buildings and Improvements | 12,144 | |||
Total | 15,514 | |||
Accumulated Depreciation | $ (613) | |||
Life on Which Building Depreciation in Income Statement is Computed | 25 years | |||
Crescent City Surgical Centre, New Orleans, LA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 18,750 | |||
Initial Cost to Company | ||||
Buildings and Improvements | 34,208 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Buildings and Improvements | 34,208 | |||
Total | 34,208 | |||
Accumulated Depreciation | $ (891) | |||
Life on Which Building Depreciation in Income Statement is Computed | 48 years | |||
Foundation Surgical Affiliates MOB, Oklahoma City, OK | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 7,647 | |||
Initial Cost to Company | ||||
Land | 1,300 | |||
Buildings and Improvements | 12,724 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,300 | |||
Buildings and Improvements | 12,724 | |||
Total | 14,024 | |||
Accumulated Depreciation | $ (370) | |||
Life on Which Building Depreciation in Income Statement is Computed | 43 years | |||
Pensacola Medical Office Building, Pensacola, FL | ||||
Initial Cost to Company | ||||
Land | $ 990 | |||
Buildings and Improvements | 5,005 | |||
Cost Capitalized Subsequent to Acquisitions | 6 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 990 | |||
Buildings and Improvements | 5,011 | |||
Total | 6,001 | |||
Accumulated Depreciation | $ (128) | |||
Life on Which Building Depreciation in Income Statement is Computed | 49 years | |||
Central Ohio Neurosurgical Surgeons MOB (CONS), Columbus, OH | ||||
Initial Cost to Company | ||||
Land | $ 981 | |||
Buildings and Improvements | 7,620 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 981 | |||
Buildings and Improvements | 7,620 | |||
Total | 8,601 | |||
Accumulated Depreciation | $ (188) | |||
Life on Which Building Depreciation in Income Statement is Computed | 44 years | |||
Great Falls Ambulatory Surgery Center, Great Falls, MT | ||||
Initial Cost to Company | ||||
Land | $ 203 | |||
Buildings and Improvements | 3,224 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 203 | |||
Buildings and Improvements | 3,224 | |||
Total | 3,427 | |||
Accumulated Depreciation | $ (102) | |||
Life on Which Building Depreciation in Income Statement is Computed | 33 years | |||
Eagles Landing Family Practice Medical Office Building, Conyers, GA | ||||
Initial Cost to Company | ||||
Land | $ 1,000 | |||
Buildings and Improvements | 3,345 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,000 | |||
Buildings and Improvements | 3,345 | |||
Total | 4,345 | |||
Accumulated Depreciation | $ (78) | |||
Life on Which Building Depreciation in Income Statement is Computed | 37 years | |||
Eagles Landing Family Practice Medical Office Building, McDonough, GA | ||||
Initial Cost to Company | ||||
Land | $ 800 | |||
Buildings and Improvements | 4,893 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 800 | |||
Buildings and Improvements | 4,893 | |||
Total | 5,693 | |||
Accumulated Depreciation | $ (116) | |||
Life on Which Building Depreciation in Income Statement is Computed | 36 years | |||
Eagles Landing Family Practice Medical Office Building, McDonough, GA | ||||
Initial Cost to Company | ||||
Land | $ 400 | |||
Buildings and Improvements | 5,086 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 400 | |||
Buildings and Improvements | 5,086 | |||
Total | 5,486 | |||
Accumulated Depreciation | $ (116) | |||
Life on Which Building Depreciation in Income Statement is Computed | 37 years | |||
Eagles Landing Family Practice Medical Office Building, Jackson, GA | ||||
Initial Cost to Company | ||||
Land | $ 800 | |||
Buildings and Improvements | 4,600 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 800 | |||
Buildings and Improvements | 4,600 | |||
Total | 5,400 | |||
Accumulated Depreciation | $ (103) | |||
Life on Which Building Depreciation in Income Statement is Computed | 38 years | |||
Foundation Surgical Hospital of San Antonio, San Antonio, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 9,783 | |||
Initial Cost to Company | ||||
Land | 2,230 | |||
Buildings and Improvements | 23,346 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,230 | |||
Buildings and Improvements | 23,346 | |||
Total | 25,576 | |||
Accumulated Depreciation | $ (634) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Foundation Healthplex of San Antonio, San Antonio, TX | ||||
Initial Cost to Company | ||||
Land | $ 911 | |||
Buildings and Improvements | 4,189 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 911 | |||
Buildings and Improvements | 4,189 | |||
Total | 5,100 | |||
Accumulated Depreciation | $ (104) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
21st Century Radiation Oncology - Sarasota, FL | ||||
Initial Cost to Company | ||||
Land | $ 633 | |||
Buildings and Improvements | 6,557 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 633 | |||
Buildings and Improvements | 6,557 | |||
Total | 7,190 | |||
Accumulated Depreciation | $ (211) | |||
Life on Which Building Depreciation in Income Statement is Computed | 27 years | |||
21st Century Radiation Oncology - Venice, FL | ||||
Initial Cost to Company | ||||
Land | $ 814 | |||
Buildings and Improvements | 2,952 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 814 | |||
Buildings and Improvements | 2,952 | |||
Total | 3,766 | |||
Accumulated Depreciation | $ (79) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
21st Century Radiation Oncology - Englewood, FL | ||||
Initial Cost to Company | ||||
Land | $ 350 | |||
Buildings and Improvements | 1,878 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 350 | |||
Buildings and Improvements | 1,878 | |||
Total | 2,228 | |||
Accumulated Depreciation | $ (45) | |||
Life on Which Building Depreciation in Income Statement is Computed | 38 years | |||
21st Century Radiation Oncology - Port Charlotte, FL | ||||
Initial Cost to Company | ||||
Land | $ 269 | |||
Buildings and Improvements | 2,326 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 269 | |||
Buildings and Improvements | 2,326 | |||
Total | 2,595 | |||
Accumulated Depreciation | $ (57) | |||
Life on Which Building Depreciation in Income Statement is Computed | 36 years | |||
Peachtree Dunwoody Medical Office Building Center, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | $ 6,046 | |||
Buildings and Improvements | 27,435 | |||
Cost Capitalized Subsequent to Acquisitions | 7 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 6,046 | |||
Buildings and Improvements | 27,442 | |||
Total | 33,488 | |||
Accumulated Depreciation | $ (936) | |||
Life on Which Building Depreciation in Income Statement is Computed | 25 years | |||
Lifecare LTACH - Pittsburgh, PA | ||||
Initial Cost to Company | ||||
Land | $ 1,142 | |||
Buildings and Improvements | 11,737 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,142 | |||
Buildings and Improvements | 11,737 | |||
Total | 12,879 | |||
Accumulated Depreciation | $ (315) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Lifecare LTACH - Ft. Worth, TX | ||||
Initial Cost to Company | ||||
Land | $ 2,730 | |||
Buildings and Improvements | 24,639 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,730 | |||
Buildings and Improvements | 24,639 | |||
Total | 27,369 | |||
Accumulated Depreciation | $ (632) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Pinnacle Health Medical Office Building, Carlisle, PA | ||||
Initial Cost to Company | ||||
Land | $ 424 | |||
Buildings and Improvements | 2,232 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 424 | |||
Buildings and Improvements | 2,232 | |||
Total | 2,656 | |||
Accumulated Depreciation | $ (46) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Pinnacle Health Medical Office Building, Harrisburg, PA | ||||
Initial Cost to Company | ||||
Land | $ 795 | |||
Buildings and Improvements | 4,601 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 795 | |||
Buildings and Improvements | 4,601 | |||
Total | 5,396 | |||
Accumulated Depreciation | $ (133) | |||
Life on Which Building Depreciation in Income Statement is Computed | 25 years | |||
South Bend Orthopaedics Medical Office Building, South Bend, IN | ||||
Initial Cost to Company | ||||
Land | $ 2,418 | |||
Buildings and Improvements | 11,355 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,418 | |||
Buildings and Improvements | 11,355 | |||
Total | 13,773 | |||
Accumulated Depreciation | $ (217) | |||
Life on Which Building Depreciation in Income Statement is Computed | 40 years | |||
Grenada Medical Complex, Grenada, MS | ||||
Initial Cost to Company | ||||
Land | $ 185 | |||
Buildings and Improvements | 5,820 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 185 | |||
Buildings and Improvements | 5,820 | |||
Total | 6,005 | |||
Accumulated Depreciation | $ (151) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Mississippi Ortho Medical Office Building, Jackson, MS | ||||
Initial Cost to Company | ||||
Land | $ 1,272 | |||
Buildings and Improvements | 14,177 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,272 | |||
Buildings and Improvements | 14,177 | |||
Total | 15,449 | |||
Accumulated Depreciation | $ (248) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Carmel Medical Pavilion, Carmel, IN | ||||
Initial Cost to Company | ||||
Buildings and Improvements | $ 3,917 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Buildings and Improvements | 3,917 | |||
Total | 3,917 | |||
Accumulated Depreciation | $ (97) | |||
Life on Which Building Depreciation in Income Statement is Computed | 25 years | |||
Presbyterian Medical Plaza, Monroe, NC | ||||
Initial Cost to Company | ||||
Land | $ 1,195 | |||
Buildings and Improvements | 5,681 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,195 | |||
Buildings and Improvements | 5,681 | |||
Total | 6,876 | |||
Accumulated Depreciation | $ (67) | |||
Life on Which Building Depreciation in Income Statement is Computed | 45 years | |||
Renaissance Ambulatory Surgery Center, Oshkosh, WI | ||||
Initial Cost to Company | ||||
Land | $ 228 | |||
Buildings and Improvements | 7,658 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 228 | |||
Buildings and Improvements | 7,658 | |||
Total | 7,886 | |||
Accumulated Depreciation | $ (99) | |||
Life on Which Building Depreciation in Income Statement is Computed | 40 years | |||
Summit Urology, Bloomington, IN | ||||
Initial Cost to Company | ||||
Land | $ 125 | |||
Buildings and Improvements | 4,792 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 125 | |||
Buildings and Improvements | 4,792 | |||
Total | 4,917 | |||
Accumulated Depreciation | $ (82) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
500 Landmark, Bloomington, IN | ||||
Initial Cost to Company | ||||
Land | $ 627 | |||
Buildings and Improvements | 3,549 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 627 | |||
Buildings and Improvements | 3,549 | |||
Total | 4,176 | |||
Accumulated Depreciation | $ (53) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
550 Landmark, Bloomington, IN | ||||
Initial Cost to Company | ||||
Land | $ 2,717 | |||
Buildings and Improvements | 15,224 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,717 | |||
Buildings and Improvements | 15,224 | |||
Total | 17,941 | |||
Accumulated Depreciation | $ (227) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
574 Landmark, Bloomington, IN | ||||
Initial Cost to Company | ||||
Land | $ 418 | |||
Buildings and Improvements | 1,493 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 418 | |||
Buildings and Improvements | 1,493 | |||
Total | 1,911 | |||
Accumulated Depreciation | $ (23) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Carlisle II MOB, Carlisle, PA | ||||
Initial Cost to Company | ||||
Land | $ 412 | |||
Buildings and Improvements | 3,962 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 412 | |||
Buildings and Improvements | 3,962 | |||
Total | 4,374 | |||
Accumulated Depreciation | $ (39) | |||
Life on Which Building Depreciation in Income Statement is Computed | 45 years | |||
Surgical Institute of Monroe, Monroe, MI | ||||
Initial Cost to Company | ||||
Land | $ 410 | |||
Buildings and Improvements | 5,743 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 410 | |||
Buildings and Improvements | 5,743 | |||
Total | 6,153 | |||
Accumulated Depreciation | $ (80) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
The Oaks at Lady Lake, Lady Lake, FL | ||||
Initial Cost to Company | ||||
Land | $ 1,065 | |||
Buildings and Improvements | 8,642 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,065 | |||
Buildings and Improvements | 8,642 | |||
Total | 9,707 | |||
Accumulated Depreciation | $ (87) | |||
Life on Which Building Depreciation in Income Statement is Computed | 42 years | |||
Mansfield ASC, Mansfield, TX | ||||
Initial Cost to Company | ||||
Land | $ 1,491 | |||
Buildings and Improvements | 6,471 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,491 | |||
Buildings and Improvements | 6,471 | |||
Total | 7,962 | |||
Accumulated Depreciation | $ (52) | |||
Life on Which Building Depreciation in Income Statement is Computed | 46 years | |||
Eye Center of Southern Indiana, Bloomington, IN | ||||
Initial Cost to Company | ||||
Land | $ 910 | |||
Buildings and Improvements | 11,477 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 910 | |||
Buildings and Improvements | 11,477 | |||
Total | 12,387 | |||
Accumulated Depreciation | $ (113) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Wayne State, Troy, MI | ||||
Initial Cost to Company | ||||
Land | $ 3,560 | |||
Buildings and Improvements | 43,052 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 3,560 | |||
Buildings and Improvements | 43,052 | |||
Total | 46,612 | |||
Accumulated Depreciation | $ (392) | |||
Life on Which Building Depreciation in Income Statement is Computed | 38 years | |||
Zangmesiter, Columbus, OH | ||||
Initial Cost to Company | ||||
Land | $ 1,610 | |||
Buildings and Improvements | 31,120 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,610 | |||
Buildings and Improvements | 31,120 | |||
Total | 32,730 | |||
Accumulated Depreciation | $ (203) | |||
Life on Which Building Depreciation in Income Statement is Computed | 40 years | |||
El Paso - Lee Trevino, El Paso, TX | ||||
Initial Cost to Company | ||||
Land | $ 2,294 | |||
Buildings and Improvements | 11,316 | |||
Cost Capitalized Subsequent to Acquisitions | 183 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,294 | |||
Buildings and Improvements | 11,499 | |||
Total | 13,793 | |||
Accumulated Depreciation | $ (101) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
El Paso - Kenworthy, El Paso, TX | ||||
Initial Cost to Company | ||||
Land | $ 728 | |||
Buildings and Improvements | 2,178 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 728 | |||
Buildings and Improvements | 2,178 | |||
Total | 2,906 | |||
Accumulated Depreciation | $ (17) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
El Paso - Murchison, El Paso, TX | ||||
Initial Cost to Company | ||||
Land | $ 2,283 | |||
Buildings and Improvements | 24,543 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 2,283 | |||
Buildings and Improvements | 24,543 | |||
Total | 26,826 | |||
Accumulated Depreciation | $ (211) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Berger Medical Center, Columbus, OH | ||||
Initial Cost to Company | ||||
Buildings and Improvements | $ 5,950 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Buildings and Improvements | 5,950 | |||
Total | 5,950 | |||
Accumulated Depreciation | $ (43) | |||
Life on Which Building Depreciation in Income Statement is Computed | 38 years | |||
Ortho One - Columbus, OH | ||||
Initial Cost to Company | ||||
Buildings and Improvements | $ 16,234 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Buildings and Improvements | 16,234 | |||
Total | 16,234 | |||
Accumulated Depreciation | $ (100) | |||
Life on Which Building Depreciation in Income Statement is Computed | 45 years | |||
Ortho One - Westerville, OH | ||||
Initial Cost to Company | ||||
Land | $ 362 | |||
Buildings and Improvements | 3,944 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 362 | |||
Buildings and Improvements | 3,944 | |||
Total | 4,306 | |||
Accumulated Depreciation | $ (25) | |||
Life on Which Building Depreciation in Income Statement is Computed | 43 years | |||
Pinnacle - 32 Northeast, Hershey, PA | ||||
Initial Cost to Company | ||||
Land | $ 408 | |||
Buildings and Improvements | 3,232 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 408 | |||
Buildings and Improvements | 3,232 | |||
Total | 3,640 | |||
Accumulated Depreciation | $ (18) | |||
Life on Which Building Depreciation in Income Statement is Computed | 33 years | |||
Pinnacle - 240 Grandview, Camp Hill, PA | ||||
Initial Cost to Company | ||||
Land | $ 321 | |||
Buildings and Improvements | 4,242 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 321 | |||
Buildings and Improvements | 4,242 | |||
Total | 4,563 | |||
Accumulated Depreciation | $ (22) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Pinnacle - 4518 Union Deposit, Harrisburg, PA | ||||
Initial Cost to Company | ||||
Land | $ 617 | |||
Buildings and Improvements | 7,305 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 617 | |||
Buildings and Improvements | 7,305 | |||
Total | 7,922 | |||
Accumulated Depreciation | $ (42) | |||
Life on Which Building Depreciation in Income Statement is Computed | 31 years | |||
Pinnacle - 4520 Union Deposit, Harrisburg, PA | ||||
Initial Cost to Company | ||||
Land | $ 169 | |||
Buildings and Improvements | 2,055 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 169 | |||
Buildings and Improvements | 2,055 | |||
Total | 2,224 | |||
Accumulated Depreciation | $ (13) | |||
Life on Which Building Depreciation in Income Statement is Computed | 28 years | |||
Pinnacle - Market Place Way ,Harrisburg, PA | ||||
Initial Cost to Company | ||||
Land | $ 808 | |||
Buildings and Improvements | 2,383 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 808 | |||
Buildings and Improvements | 2,383 | |||
Total | 3,191 | |||
Accumulated Depreciation | $ (11) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Columbus - 2000 10th Aveunue, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 380 | |||
Buildings and Improvements | 2,737 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 380 | |||
Buildings and Improvements | 2,737 | |||
Total | 3,117 | |||
Accumulated Depreciation | $ (12) | |||
Life on Which Building Depreciation in Income Statement is Computed | 22 years | |||
Columbus - 1942 North Avenue, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 91 | |||
Buildings and Improvements | 273 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 91 | |||
Buildings and Improvements | 273 | |||
Total | 364 | |||
Accumulated Depreciation | $ (2) | |||
Life on Which Building Depreciation in Income Statement is Computed | 12 years | |||
Columbus - 920 18th Street, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 110 | |||
Buildings and Improvements | 281 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 110 | |||
Buildings and Improvements | 281 | |||
Total | 391 | |||
Accumulated Depreciation | $ (3) | |||
Life on Which Building Depreciation in Income Statement is Computed | 8 years | |||
Columbus - 1900 10th Ave, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 474 | |||
Buildings and Improvements | 5,580 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 474 | |||
Buildings and Improvements | 5,580 | |||
Total | 6,054 | |||
Accumulated Depreciation | $ (19) | |||
Life on Which Building Depreciation in Income Statement is Computed | 26 years | |||
Columbus - 1800 10th Ave, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 539 | |||
Buildings and Improvements | 5,238 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 539 | |||
Buildings and Improvements | 5,238 | |||
Total | 5,777 | |||
Accumulated Depreciation | $ (17) | |||
Life on Which Building Depreciation in Income Statement is Computed | 28 years | |||
Columbus - 705 17th Street, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 372 | |||
Buildings and Improvements | 2,346 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 372 | |||
Buildings and Improvements | 2,346 | |||
Total | 2,718 | |||
Accumulated Depreciation | $ (14) | |||
Life on Which Building Depreciation in Income Statement is Computed | 15 years | |||
Columbus - 615 19th Street, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 75 | |||
Buildings and Improvements | 113 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 75 | |||
Buildings and Improvements | 113 | |||
Total | 188 | |||
Accumulated Depreciation | $ (3) | |||
Life on Which Building Depreciation in Income Statement is Computed | 3 years | |||
Columbus - 1968 North Avenue, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 89 | |||
Buildings and Improvements | 32 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 89 | |||
Buildings and Improvements | 32 | |||
Total | 121 | |||
Accumulated Depreciation | $ (1) | |||
Life on Which Building Depreciation in Income Statement is Computed | 4 years | |||
Columbus - 633 19th Street, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 99 | |||
Buildings and Improvements | 255 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 99 | |||
Buildings and Improvements | 255 | |||
Total | 354 | |||
Accumulated Depreciation | $ (3) | |||
Life on Which Building Depreciation in Income Statement is Computed | 9 years | |||
Columbus - 500 18th Street, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 430 | |||
Buildings and Improvements | 170 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 430 | |||
Buildings and Improvements | 170 | |||
Total | 600 | |||
Accumulated Depreciation | $ (3) | |||
Life on Which Building Depreciation in Income Statement is Computed | 8 years | |||
Columbus - 2200 Hamilton Rd, Columbus, GA | ||||
Initial Cost to Company | ||||
Land | $ 267 | |||
Buildings and Improvements | 1,579 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 267 | |||
Buildings and Improvements | 1,579 | |||
Total | 1,846 | |||
Accumulated Depreciation | $ (7) | |||
Life on Which Building Depreciation in Income Statement is Computed | 22 years | |||
Columbus - 1810 Stadium Drive, Phenix City, AL | ||||
Initial Cost to Company | ||||
Land | $ 202 | |||
Buildings and Improvements | 149 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 202 | |||
Buildings and Improvements | 149 | |||
Total | 351 | |||
Accumulated Depreciation | $ (2) | |||
Life on Which Building Depreciation in Income Statement is Computed | 30 years | |||
Middletown Medical - 111 Maltese, Wallkill, NY | ||||
Initial Cost to Company | ||||
Land | $ 670 | |||
Buildings and Improvements | 9,921 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 670 | |||
Buildings and Improvements | 9,921 | |||
Total | 10,591 | |||
Accumulated Depreciation | $ (24) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Middletown Medical - 2 Edgewater, Wallkill, NY | ||||
Initial Cost to Company | ||||
Land | $ 200 | |||
Buildings and Improvements | 2,966 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 200 | |||
Buildings and Improvements | 2,966 | |||
Total | 3,166 | |||
Accumulated Depreciation | $ (7) | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
Carle Danville MOB, Danville, IL | ||||
Initial Cost to Company | ||||
Land | $ 607 | |||
Buildings and Improvements | 7,136 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 607 | |||
Buildings and Improvements | 7,136 | |||
Total | 7,743 | |||
Accumulated Depreciation | $ (20) | |||
Life on Which Building Depreciation in Income Statement is Computed | 33 years | |||
Napoleon MOB, New Orleans, LA | ||||
Initial Cost to Company | ||||
Land | $ 1,202 | |||
Buildings and Improvements | 7,412 | |||
Cost Capitalized Subsequent to Acquisitions | 5 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,202 | |||
Buildings and Improvements | 7,417 | |||
Total | $ 8,619 | |||
Life on Which Building Depreciation in Income Statement is Computed | 25 years | |||
West TN Bone & Joint - Physicians Drive, Jackson, TN | ||||
Initial Cost to Company | ||||
Land | $ 650 | |||
Buildings and Improvements | 2,960 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 650 | |||
Buildings and Improvements | 2,960 | |||
Total | $ 3,610 | |||
Life on Which Building Depreciation in Income Statement is Computed | 35 years | |||
West TN Bone & Joint, Jackson, TN | ||||
Initial Cost to Company | ||||
Land | $ 1,254 | |||
Buildings and Improvements | 5,215 | |||
Gross Amount at Which Carried as of Close of Period | ||||
Land | 1,254 | |||
Buildings and Improvements | 5,215 | |||
Total | $ 6,469 | |||
Life on Which Building Depreciation in Income Statement is Computed | 31 years |
SCHEDULE III - REAL ESTATE AN60
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Changes in total real estate | |||
Balance as of the beginning of the year | $ 224,730 | $ 111,149 | $ 124,333 |
Acquisitions | 505,379 | 113,225 | |
Additions | 900 | 806 | 786 |
Impairment | (1,750) | (937) | |
Dispositions | (225) | (450) | (13,033) |
Balance as of the end of the year | 729,034 | 224,730 | 111,149 |
Changes in accumulated depreciation | |||
Balance as of the beginning of the year | 20,299 | 16,495 | 14,484 |
Acquisitions | 6,575 | 694 | |
Additions | 5,898 | 3,110 | 3,024 |
Dispositions | (1,013) | ||
Balance as of the end of the year | $ 32,772 | $ 20,299 | $ 16,495 |