MedEquities Realty Trust 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 04, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	MRT
Entity Registrant Name	MEDEQUITIES REALTY TRUST, INC.
Entity Central Index Key	1,616,314
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		31,684,577

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real estate properties
Land	$ 39,584	$ 40,081
Building and improvements	440,927	458,930
Intangible lease assets	11,387	3,441
Furniture, fixtures, and equipment	2,976	2,401
Less accumulated depreciation and amortization	(22,327)	(11,172)
Total real estate properties, net	472,547	493,681
Mortgage notes receivable, net	9,914	9,909
Cash and cash equivalents	12,211	12,474
Other assets, net	35,330	27,603
Total Assets	530,002	543,667
Liabilities
Debt	244,000	247,400
Accounts payable and accrued liabilities	21,606	21,102
Deferred revenue	1,566	3,920
Total liabilities	267,172	272,422
Commitments and contingencies
Equity
Preferred stock, $0.01 par value. Authorized 50,000 shares; 125 shares issued and outstanding at September 30, 2016 and December 31, 2015	1	1
Common stock, $0.01 par value. Authorized 400,000 shares; 11,250 and 11,233 issued and outstanding at September 30, 2016 and December 31, 2015, respectively	109	109
Additional paid in capital	275,667	273,740
Dividends declared	(34,585)	(19,876)
Retained earnings	19,329	12,724
Total MedEquities Realty Trust, Inc. stockholders' equity	260,521	266,698
Noncontrolling interest	2,309	4,547
Total equity	262,830	271,245
Total Liabilities and Equity	$ 530,002	$ 543,667

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	125,000	125,000
Preferred stock, shares outstanding	125,000	125,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	11,250,000	11,233,000
Common stock, shares outstanding	11,250,000	11,233,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Rental income	$ 13,603	$ 12,586	$ 34,561	$ 26,555
Total revenues	13,845	13,238	35,286	29,101
Expenses
Depreciation and amortization	3,617	2,713	10,705	5,959
Property related	341	294	1,006	873
Acquisition costs	29	214	488	408
Franchise, excise and other taxes	87	14	222	242
Bad debt expense			216
General and administrative	2,436	2,437	7,760	6,108
Total operating expenses	6,510	5,672	20,397	13,590
Operating income	7,335	7,566	14,889	15,511
Other income (expense)
Interest and other income	191	3	194	12
Interest expense	(2,792)	(2,341)	(9,143)	(4,157)
Other income (expense)	(2,601)	(2,338)	(8,949)	(4,145)
Net income	4,734	5,228	5,940	11,366
Less: Preferred stock dividends	(2,464)	(2,465)	(7,394)	(5,370)
Less: Net (income) loss attributable to noncontrolling interest	(821)	(1,339)	665	(2,656)
Net income (loss) attributable to common stockholders	$ 1,449	$ 1,424	$ (789)	$ 3,340
Net income (loss) attributable to common stockholders per share
Basic and diluted	$ 0.12	$ 0.12	$ (0.09)	$ 0.29
Weighted average shares outstanding
Basic and diluted	10,964	10,949	10,961	10,947
Dividends declared per common share	$ 0.42	$ 0.38	$ 0.63	$ 0.55
Mortgage Notes Receivable
Revenues
Interest income	$ 231	$ 649	$ 689	$ 2,319
Notes Receivable
Revenues
Interest income	$ 11	$ 3	$ 36	$ 227

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Series B Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Dividends Declared	Non-Controlling Interest
Balance at Dec. 31, 2015	$ 271,245	$ 1	$ 109	$ 273,740	$ 12,724	$ (19,876)	$ 4,547
Balance (in shares) at Dec. 31, 2015		125	11,233
Grants of restricted stock (in shares)			17
Distributions to noncontrolling interest	(1,573)						(1,573)
Stock-based compensation	1,927			1,927
Net income (loss)	5,940				6,605		(665)
Dividends to preferred stockholders	(7,394)					(7,394)
Dividends to common stockholders	(7,315)					(7,315)
Balance at Sep. 30, 2016	$ 262,830	$ 1	$ 109	$ 275,667	$ 19,329	$ (34,585)	$ 2,309
Balance (in shares) at Sep. 30, 2016		125	11,250

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income (loss)	$ 5,940	$ 11,366
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	13,598	7,286
Stock-based compensation	1,927	1,163
Straight-line rent receivable	4,703	(7,252)
Straight-line rent liability	124	128
Bad debt expense	216
Write-off of pre-acquisitions costs	252
Write-off of pre-offering costs	89
Changes in operating assets and liabilities
Other assets	(11,400)	(5,524)
Accounts payable and accrued liabilities	9,721	3,358
Deferred revenues	(2,326)	293
Net cash provided by operating activities	22,844	10,818
Investing activities
Acquisitions of real estate	(72)	(286,891)
Funding of note receivable	(1,662)	(500)
Repayment of note receivable	1,712
Capitalized pre-acquisition costs, net	(268)	(279)
Capital expenditures	(2)	(288)
Net cash used in investing activities	(292)	(287,958)
Financing activities
Dividends paid to common stockholders	(8,096)	(5,124)
Dividends paid to preferred stockholders	(7,398)	(4,546)
Net borrowings (repayments) on secured credit facility	(3,400)	166,000
Distributions to noncontrolling interest	(1,573)
Deferred credit facility fees	(1,400)	(2,259)
Capitalized pre-offering costs	(948)	(1,976)
Proceeds from sale of preferred shares, net of offering costs		119,955
Contributions by noncontrolling interest		1,000
Net cash (used in) provided by financing activities	(22,815)	273,050
Decrease in cash and cash equivalents	(263)	(4,090)
Cash and cash equivalents, beginning of period	12,474	10,493
Cash and cash equivalents, end of period	12,211	6,403
Supplemental Cash Flow Information
Interest paid	7,105	2,816
Accrued pre-offering costs	2,296	996
Texas gross margins taxes paid, net of reimbursement	69	9
Accrued pre-acquisition costs	3	319
Accrued deferred credit facility fees	$ 2	140
Lakeway mortgage note receivable foreclosure		50,000
Accrued capital expenditures		$ 1

Organization and Nature of Busi

Organization and Nature of Business	9 Months Ended
	Sep. 30, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Nature of Business	Note 1 - Organization and Nature of Business MedEquities Realty Trust, Inc. (the “Company”), which was incorporated in the state of Maryland on April 23, 2014, is a self-managed and self-administered company that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. As of September 30, 2016, the Company had investments of $482.5 million, net in 24 real estate properties and one mortgage note receivable. The Company owns 100% of all of its properties and investments, other than Lakeway Regional Medical Center (“Lakeway Hospital”), in which the Company owns a 51% interest through a consolidated partnership (the “Lakeway Partnership”). On October 4, 2016, the Company completed the initial public offering (the “IPO”) of its common stock in which the Company issued 19,000,000 shares and on October 28, 2016, issued an additional 1,434,567 shares upon the underwriters’ partial exercise of their over-allotment option. The public offering price of the shares sold in the IPO was $12.00 per share, resulting in aggregate net proceeds to the Company of approximately $226.2 million, after deducting the underwriting discount and commissions and estimated offering expenses payable by the Company. These estimated offering expenses exclude approximately $3.3 million of offering expenses that had been paid as of June 30, 2016. The Company used approximately $131.4 million to redeem all of its outstanding preferred stock and approximately $94.8 million to repay amounts outstanding under its secured credit facility. The accompanying financial statements of the Company do not reflect the IPO or the use of the net proceeds therefrom because the offering closed after September 30, 2016. The Company conducts its business through an umbrella partnership REIT, or UPREIT, structure, consisting of the Company’s operating partnership, MedEquities Realty Operating Partnership, LP (the “Operating Partnership”), and subsidiaries of the Operating Partnership, including the Company’s taxable REIT subsidiary (“TRS”), MedEquities Realty TRS, LLC. The Company’s wholly owned limited liability company, MedEquities OP GP, LLC, is the sole general partner of the Operating Partnership, and the Company presently owns all of the units of limited partnership interest in the Operating Partnership (“OP units”). In the future, the Company may issue OP units to third parties in connection with healthcare property acquisitions, as compensation or otherwise. As the sole owner of the general partner of the Operating Partnership, the Company has the exclusive power to manage and conduct the Operating Partnership’s business, subject to certain limitations. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal tax purposes. To maintain its qualification as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles). As a REIT, the Company will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distributions to stockholders. Even if the Company qualifies for taxation as a REIT, the Company may be subject to state and local taxes on its income and property and federal income and excise taxes on its undistributed income. Taxable income from non-REIT activities managed through the Company’s TRS, if any, is subject to applicable U.S. federal, state and local income taxes. The Company has no activity in its TRS.

Accounting Policies and Related

Accounting Policies and Related Matters	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Accounting Policies and Related Matters	Note 2 - Accounting Policies and Related Matters The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for a full year. The financial statements and related notes do not include all information and footnotes required by GAAP for annual reports. These interim financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto as of and for the year ended December 31, 2015, included in the Company’s final prospectus related to the IPO, dated September 28, 2016, filed with the Securities and Exchange Commission on September 29, 2016. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries and subsidiaries in which the Company has a controlling interest. All material intercompany transactions and balances have been eliminated in consolidation. For information about significant accounting policies, refer to the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s final prospectus related to the IPO, dated September 28, 2016, filed with the Securities and Exchange Commission on September 29, 2016. During the three and nine months ended September 30, 2016, there were no material changes to these policies. Reclassifications: Certain reclassifications have been made to the Consolidated Balance Sheet as of December 31, 2015 to conform to the 2016 presentation. Recent Accounting Developments: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” a comprehensive new revenue recognition standard that supersedes most of the existing revenue recognition guidance. This standard’s core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company’s revenues, are not within the scope of the new standard and will continue to be accounted for under existing standards. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of this standard by one year. This standard is effective for public companies beginning after December 15, 2017 and interim periods therein for public companies. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company continues to evaluate this standard. However, the standard is not expected to have a significant impact on the Company’s consolidated financial position, results of operations and cash flows since the Company’s revenues consist primarily of rental income from leasing arrangements, which are specifically excluded from the guidance in ASU 2014-09. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which expands upon the guidance on the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance requires a retrospective application and is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30),” which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The Company adopted these standards on January 1, 2016, which did not have a significant impact on the Company’s consolidated financial position or results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer will be required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Entities will also be required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU were effective for fiscal years beginning January 1, 2016 and require the prospective application for adjustments to provisional amounts that occur after the effective date. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheet and making targeted improvements to lessor accounting. The guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance will be effective beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends the accounting for share-based payment transactions, including income tax effects, equity versus liability classification and classification on the statement of cash flows. The guidance is effective for annual and interim periods of public entities beginning January 1, 2017. For all other entities, the guidance is effective beginning January 1, 2018 and interim periods within fiscal years beginning January 1, 2019. Early adoption is permitted in any annual or interim period for which financial statements have not been issued or made available for issuance. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard also requires additional disclosures related to significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The amended guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2020 with early adoption permitted for the fiscal years, and interim periods within those fiscal years, beginning January 1, 2019. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements.

Investment Activity

Investment Activity	9 Months Ended
	Sep. 30, 2016
Investment Activity [Abstract]
Investment Activity	Note 3 – Investment Activity Lakeway Hospital Operator Change On September 1, 2016, Baylor Scott & White Health (“Baylor”) acquired the operations of the Company’s former tenant (“LRMC”) at Lakeway Hospital. In connection with the closing of this transaction, the Company, through the Lakeway Partnership, simultaneously terminated the lease with LRMC and entered into a new triple-net lease with an existing Baylor hospital entity (the “Baylor Lessee”), which has an initial term of 15 years with two ten-year extension options. The lease is unconditionally guaranteed by Baylor University Medical Center, which is a controlled affiliate of the nonprofit parent corporation Baylor Scott & White Holdings. The initial annual base rent is approximately $12.8 million, payable in equal monthly installments, which is the same as the annual base rent under the lease with LRMC. The base rent will increase by 1.75% on the second anniversary of the lease, 2.0% on the third anniversary and 2.5% on each anniversary thereafter. The lease provides that, commencing after completion of the third year of the lease and subject to certain conditions, the Baylor Lessee has the option to purchase Lakeway Hospital at a price equal to the aggregate base rent payable under the lease for the 12-month period following the date of the written notice from Baylor divided by (i) 6.5% if written notice is provided after completion of the third lease year and before completion of the tenth lease year (which would result in a purchase price of not less than approximately $203.6 million) or (ii) 7.0% if written notice is provided any time thereafter. Pursuant to the lease, on September 30, 2016, the Company (through the Lakeway Partnership) paid the Baylor Lessee an approximately $2.3 million tenant allowance for the transition of the hospital, which is included in other assets on the consolidated balance sheet at September 30, 2016. Under the terms of the lease with LRMC, contractual base rent increased ratably during the first six months of 2016 by an aggregate of $3.5 million (representing the difference between the reduced monthly base rent of $0.5 million due for the second and third quarters of 2015 and the stabilized monthly rent of $1.1 million, plus interest on the deferred rent) (the “Deferred Payment”). As part of the lease termination agreement with LRMC, the Company agreed to receive $1.5 million in satisfaction of the $1.7 million in the Deferred Payment due as of March 31, 2016, resulting in bad debt expense of $0.2 million, which was recorded during the second quarter of 2016. The remaining $1.8 million of the Deferred Payment was not recognized. The Company also wrote off approximately $7.0 million of the straight-line rent receivable associated with the LRMC lease, which was recorded as a reduction to rental income on the Company’s consolidated statements of operations during the second quarter of 2016. The noncontrolling interest’s proportionate share of this amount was $3.6 million, which is reflected in the net loss attributable to noncontrolling interest on the Company’s consolidated statement of operations for the nine months ended September 30, 2016. Adjustments to Purchase Price Allocations of 2015 Acquisitions The purchase price allocations for the Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo acquisitions, both of which closed on October 1, 2015, were preliminary at December 31, 2015 since the valuations for both of the acquisitions were still in progress. The preliminary allocations for these properties were comprised of $4.6 million in land and $39.9 million in building and improvements. The purchase price allocations were updated during the first quarter of 2016, resulting in adjustments to the preliminary purchase price allocations to reflect the new information obtained about the facts and circumstances that existed as of the respective acquisition dates that, if known, would have affected the measurement of the amounts recognized as of those dates. Additionally, the purchase price allocation for Kearny Mesa was updated in the second quarter of 2016 for the elimination of the $10.0 million earn-out as discussed below. The revised allocations for these properties are as follows (dollars in thousands): Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Land $ 2,995 $ 991 $ 3,986 Buildings and improvements 11,760 10,235 21,995 Intangible lease assets - 7,946 7,946 Furniture, fixtures, and equipment 347 227 574 Total real estate properties acquired $ 15,102 $ 19,399 $ 34,501 The Kearny Mesa acquisition was accounted for as an asset acquisition and the Vibra Rehabilitation Hospital of Amarillo acquisition was accounted for as a business combination. The following table shows the impact of amounts recorded in the consolidated statement of operations for the nine months ended September 30, 2016 due to the change in the estimates of the purchase price allocations that would have been recorded in the consolidated statement of operations in prior periods had the adjustment to the provisional amounts been recognized as of the acquisition date (dollars in thousands). Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Rental income $ - $ (127 ) $ (127 ) Depreciation and amortization 26 (79 ) (53 ) Net income attributable to common stockholders $ (26 ) $ (48 ) $ (74 ) Adjustments to Kearny Mesa In the second quarter of 2016, the Company and Life Generations amended the purchase and sale agreement for Kearny Mesa to eliminate the $10.0 million earn-out. This amount was recorded in real estate properties and accounts payable and accrued liabilities on the Company’s consolidated balance sheet at December 31, 2015 and has been eliminated from the Company’s consolidated balance sheet at September 30, 2016. The Company recorded an approximately $0.2 million reduction of depreciation expense on the consolidated statements of operations for the nine months ended September 30, 2016 for depreciation expense recorded in prior periods associated with the earn-out. Leasing Operations The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2031. Leases for the Company’s portfolio, including single-tenant properties, generally require the lessee to pay minimum rent (which generally increases annually on a fixed percentage basis or based on increases in the consumer price index), all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. Minimum cash rental payments due to the Company in future periods under operating leases for the Company’s properties that have non-cancelable terms extending beyond one year as of September 30, 2016 are as follows (dollars in thousands): For the year ending December 31: 2016 (remaining three months) $ 12,599 2017 50,509 2018 49,673 2019 50,172 2020 50,903 2021 51,705 Thereafter 497,999 Total $ 763,560 Concentrations of Credit Risks The following table contains information regarding tenant concentration in the Company’s portfolio, based on the percentage of revenue for the nine months ended September 30, 2016 and 2015, related to tenants, or affiliated tenants, that exceed 10% of revenues. % of Total Revenue for the nine months ended September 30, 2016 2015 GruenePointe Holdings 30.2% (1) Life Generations Healthcare 18.3% 12.6% Fundamental Healthcare 17.5% 18.3% Vibra Healthcare 16.1% 20.1% LRMC (2) (1) 35.8% (1) Total revenue is less than 10%. (2) LRMC was the prior tenant at Lakeway Hospital, in which the Company owns a 51% interest through the Lakeway Partnership. The lease with LRMC was terminated on September 1, 2016. See “Lakeway Hospital Operator Change” above for further discussion. The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of September 30, 2016, which includes percentage of rental income for the nine months ended September 30, 2016 and 2015 (dollars in thousands). % of Total Real % of Rental Income State Number of Properties Gross Investment Estate Property Investments Nine months ended September 30, 2016 Nine months ended September 30, 2015 Texas 14 $ 270,725 54.7% 55.6% 55.7% California 7 154,727 31.3% 30.0% 28.4% Nevada 2 49,422 10.0% 10.2% 10.4% South Carolina 1 20,000 4.0% 4.2% 5.5% 24 $ 494,874 100.0% 100.0% 100.0%

Real Estate Intangibles

Real Estate Intangibles	9 Months Ended
	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Real Estate Intangibles	Note 4 - Real Estate Intangibles The following is a summary of the carrying amount of real estate intangible assets as of September 30, 2016 (dollars in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Life (Years) Above-market lease intangible $ 7,636 $ (509 ) $ 7,127 14.0 In-place leases 2,406 (829 ) 1,577 9.3 Leasing commissions 1,294 (355 ) 939 10.1 Legal/marketing fees 51 (18 ) 33 9.0 Total $ 11,387 $ (1,711 ) $ 9,676 12.8 The Company recorded amortization expense related to real estate intangible assets of approximately $0.3 million and $1.0 million for the three and nine months ended September 30, 2016, respectively. Amortization expense related to real estate intangible assets of approximately $0.1 million and $0.4 million was recorded for the three and nine months ended September 30, 2015, respectively. The following table represents expected amortization of existing real estate intangible assets at September 30, 2016 (dollars in thousands): For the year ending December 31: 2016 (remaining three months) $ 279 2017 1,075 2018 707 2019 687 2020 687 2021 685 Thereafter 5,556 Total $ 9,676

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt	Note 5 - Debt On May 17, 2016, the Company amended its secured revolving credit facility (“Credit Facility”) to reduce total commitments under the facility from $375 million to $300 million and extend the maturity date to November 2017. The Company paid approximately $1.4 million in fees in connection with this amendment. Prior to completion of the IPO, amounts outstanding under the Credit Facility bore interest at LIBOR plus a margin between 2.75% and 3.75% or a base rate plus a margin between 1.75% and 2.75%, in each case depending on the Company’s leverage. Effective November 1, 2016, due to the completion of the IPO, amounts outstanding under the Credit Facility bear interest at LIBOR plus a margin between 2.00% and 2.50% or a base rate plus a margin between 1.00% and 1.50%, in each case depending on the Company’s leverage. The Credit Facility includes an accordion feature that allows the total borrowing capacity under the Credit Facility to be increased to up to $600 million, subject to certain conditions, including obtaining additional commitments from lenders. The Credit Facility has two 12-month extension options, subject to certain conditions, including the payment of a 0.15% extension fee at each extension. The total amount of deferred financing costs included in other assets on the consolidated balance sheet at September 30, 2016 was $4.9 million. The Company recognized amortization expense of deferred financing costs, included in interest expense on the consolidated statements of operations, of $0.4 million and $2.0 million for the three and nine months ended September 30, 2016, respectively. The amortization expense for the nine months ended September 30, 2016 includes approximately $0.3 million of unamortized deferred financing costs associated with the Credit Facility amendment that was expensed in May 2016. Amortization expense of deferred financing costs was $0.7 million and $1.3 million for the three and nine months ended September 30, 2015. At September 30, 2016, the weighted average interest rate under the Credit Facility was 3.8%. Effective with the interest rate reset on November 1, 2016, the interest rate on outstanding borrowings was 2.5%. The Credit Facility includes an unused fee of 0.25% for usage greater than 50.0% and 0.35% for usage of 50.0% or less. The amount available for the Company to borrow under the Credit Facility is limited according to a borrowing base valuation of certain real estate investments owned by subsidiaries of the Operating Partnership that secure this facility. At September 30, 2016, the Company had $244.0 million outstanding under the Credit Facility. In October 2016, the Company repaid $94.8 million of the amount outstanding under the Credit Facility with a portion of the net proceeds from the IPO (see Note 1). At November 8, 2016, the Company had $149.2 million outstanding under the Credit Facility and approximately $69.2 million of maximum additional available capacity, subject to continued compliance with the covenants under the Credit Facility. Covenants The Credit Facility contains customary financial and operating covenants, including covenants relating to the Company’s total leverage ratio, fixed charge coverage ratio, tangible net worth, minimum liquidity, maximum distribution/payout ratio and restrictions on recourse debt, secured debt and certain investments. The Credit Facility also contains customary events of default, including among others, nonpayment of principal or interest, material breach of representations and warranties, and failure to comply with covenants. Any event of default, if not cured or waived, could result in the acceleration of any outstanding indebtedness under the Credit Facility. The Company was in compliance with all covenants at September 30, 2016.

Other Assets

Other Assets	9 Months Ended
	Sep. 30, 2016
Other Assets [Abstract]
Other Assets	Note 6 - Other Assets Items included in other assets on the Company’s consolidated balance sheets as of September 30, 2016 and December 31, 2015 are detailed in the table below (dollars in thousands): September 30, 2016 December 31, Surety bond deposit $ 9,410 $ - Tenant allowances and lease incentives, net 8,784 6,913 Capitalized pre-offering costs 5,896 3,659 Straight-line rent receivable 5,214 9,917 Deferred financing costs, net 1,885 2,521 Prepaid assets and deposits 1,455 1,009 Interest and accounts receivable 971 1,729 Pre-acquisition costs 826 939 Note receivable 450 500 Restricted cash 225 146 Corporate property, net 214 270 $ 35,330 $ 27,603 As discussed in Note 8, LRMC deposited approximately $9.4 million with the Company as collateral for the surety bond that is included in other assets on the consolidated balance sheet at September 30, 2016. The Company also recorded a corresponding liability included in accounts payable and accrued liabilities on the consolidated balance sheet at September 30, 2016 related to this deposit.

Incentive Plan

Incentive Plan	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Incentive Plan	Note 7 - Incentive Plan The Company’s Amended and Restated 2014 Equity Incentive Plan (the “Plan”) provides for the grant of stock options, share awards (including restricted common stock and restricted stock units), stock appreciation rights, dividend equivalent rights, performance awards, annual incentive cash awards and other equity-based awards, including Long Term Incentive Plan (“LTIP”) units, which are convertible on a one-for-one basis into OP units. As of September 30, 2016, the Company had 693,082 shares of common stock reserved for potential future issuance under the Plan, subject to certain adjustments set forth in the Plan. Restricted Equity Awards Restricted Stock Units As of September 30, 2016, the Company had granted an aggregate of 359,025 performance-vesting restricted stock units to its executive officers and certain other employees under the Plan. These restricted stock units will vest on the third anniversary of the grant date based on the achievement of absolute total return to stockholders (“TSR”) (50% weighting) and relative TSR as compared to the performance of the MSCI US REIT Index (“RMS”) (50% weighting), subject to continued employment through the vesting date and certain other vesting terms. For performance between the specified TSR Performance and RMS Performance hurdles, the amount earned would be interpolated on a linear basis. Dividends on the restricted stock units will accrue but will not be paid unless and until the underlying restricted stock units vest and are converted to shares of common stock. The absolute and relative TSR thresholds are as follows: Absolute TSR Award TSR Performance % of Award Earned 25.5% 0% 27.5% 25% 29.5% 50% 31.5% 75% 33.5% 100% Relative TSR Award MSCI US REIT Index Performance % of Award Earned = Index 0% Index +3% 50% Index +6% or greater 100% Restricted Shares On January 1, 2016, the Company granted 16,665 restricted shares of common stock to its non-employee directors as part of the annual director compensation, which will vest ratably on each of the first three anniversaries of the date of grant, subject to the director’s continued service on the Company’s board of directors through such dates. The total value of these awards is calculated to be approximately $0.3 million. The following summarizes the stock-based award activity for the nine months ended September 30, 2016 and 2015: 2016 2015 Vesting Based on Service Vesting Based on Market/Performance Conditions Vesting Based on Service Vesting Based on Market/Performance Conditions Non-vested awards at beginning of period 280,080 359,025 129,555 158,927 Awarded 16,665 - 158,396 200,098 Vested (14,812 ) - (6,481 ) - Forfeited - - - - Non-vested awards at end of period 281,933 359,025 281,470 359,025 The weighted average value of the total restricted shares and restricted stock units outstanding at September 30, 2016 was approximately $15.48 per share and $7.91 per unit, respectively. The weighted average value of the total restricted shares and restricted stock units outstanding at September 30, 2015 was approximately $15.48 per share and $7.91 per unit, respectively. All of the shares that vested during the nine months ended September 30, 2016 related to grants of restricted shares to non-employee directors. The value of stock-based awards is charged to compensation expense included in general and administrative expenses over the vesting periods. For the three and nine months ended September 30, 2016, the Company recognized approximately $0.6 million and $1.9 million of non-cash compensation expense, respectively. The remaining unrecognized cost from stock-based awards at September 30, 2016 was approximately $3.4 million and will be recognized over a weighted-average period of 1.5 years. For the three and nine months ended September 30, 2015, the Company recognized approximately $0.5 million and $1.2 million of non-cash compensation expense, respectively. The remaining unrecognized cost from stock-based awards at September 30, 2015 was approximately $5.7 million.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8 - Commitments and Contingencies Commitments As of September 30, 2016, the Company was obligated under operating lease agreements consisting primarily of the Company’s corporate office lease, which expires in 2020, and a ground lease related to the medical office building in the Company’s portfolio, which expires in 2081. Annual base rent on the corporate office lease increases approximately 3.0% annually. The Company’s ground lease rent increases 2.0% annually and is included in property-related expense. Rent expense relating to the operating leases for the three and nine months ended September 30, 2016 was approximately $0.1 million and $0.4 million, respectively. Rent expense relating to the operating leases for the three months and nine months ended September 30, 2015 was approximately $0.1 million and $0.3 million, respectively. The Company’s future minimum lease payments for its operating leases as of September 30, 2016 were as follows (dollars in thousands): For the year ending: 2016 (remaining three months) $ 82 2017 334 2018 342 2019 351 2020 203 2021 176 Thereafter 19,979 Total $ 21,467 On February 2, 2016, the Company agreed to provide a surety bond of $9.4 million for a litigation judgment against LRMC, which stands behind LRMC in the event it is unable to fund the entire amount of the judgment. On September 1, 2016, LRMC deposited $9.4 million of the net proceeds from the sale of their operations to Baylor with the Company as collateral to secure the surety bond, which is included in both other assets and accounts payable and accrued liabilities on the consolidated balance sheet at September 30, 2016. The Company recognized a surety bond fee of approximately $0.2 million in interest and other income on the consolidated statements of operations for the three and nine months ended September 30, 2016. Contingencies From time to time, the Company or its properties may be subject to claims and suits in the ordinary course of business. The Company’s lessees and borrowers have indemnified, and are obligated to continue to indemnify, the Company against all liabilities arising from the operations of the properties and are further obligated to indemnify it against environmental or title problems affecting the real estate underlying such facilities. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

Equity

Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Equity	Note 9 - Equity Preferred Stock Series B On March 11, 2015 and April 1, 2015, the Company sold an aggregate of 125,000 shares of the Company’s 7.875% Series B Redeemable Cumulative Preferred Stock (“Series B Preferred Stock”), with a liquidation preference of $1,000 per share, to Carter/Validus Operating Partnership, L.P. (“Carter Validus”), for gross proceeds of $125 million. Dividends on the Series B Preferred Stock were paid monthly at an annual rate of 7.875% of the $1,000 liquidation preference plus accumulated and unpaid dividends, subject to increases in the event of certain defaults by the Company. On October 4, 2016, upon completion of the IPO, the Company redeemed the Series B Preferred Stock for $131.3 million, based on the $1,000 liquidation preference and a special redemption dividend equal to 5% of the liquidation preference, plus accrued and unpaid dividends of $0.9 million, which included the September 2016 dividend of $0.8 million. The September 2016 dividend was included in accounts payable and accrued liabilities on the consolidated balance sheet at September 30, 2016. Common Stock Dividends On December 9, 2015, the Company’s board of directors declared a cash dividend of $0.30 per share, comprised of a regular quarterly dividend of $0.21 per share and an additional special dividend of $0.09 per share. The dividend was paid on January 14, 2016 to stockholders of record on December 31, 2015. On April 28, 2016, the Company’s board of directors declared a cash dividend of $0.21 per share for the period from January 1, 2016 to March 31, 2016. The dividend was paid on May 19, 2016 to stockholders of record on May 10, 2016. On August 3, 2016, the Company’s board of directors declared a cash dividend of $0.21 per share for the period from April 1, 2016 to June 30, 2016. The dividend was paid on August 30, 2016 to stockholders of record on August 17, 2016. On September 15, 2016, the Company’s board of directors declared a cash dividend of $0.21 per share for the period from July 1, 2016 to September 30, 2016. The dividend was paid on October 4, 2016 to stockholders of record on September 23, 2016. This dividend was included in accounts payable and accrued liabilities on the consolidated balance sheet at September 30, 2016. Distributions to noncontrolling interest Distributions to the noncontrolling interest holder in the Lakeway Partnership subsequent to September 30, 2016 were approximately $0.2 million.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Note 10 - Earnings per Share The Company applies the two-class method for determining earnings per common share as its outstanding restricted common stock with non-forfeitable dividend rights are considered participating securities. The following table sets forth the computation of earnings per common share for the three and nine months ended September 30, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September Numerator: 2016 2015 2016 2015 Net income $ 4,734 $ 5,228 $ 5,940 $ 11,366 Less: Net (income) loss attributable to noncontrolling interest (821 ) (1,339 ) 665 (2,656 ) Less: Dividends on preferred shares (2,464 ) (2,465 ) (7,394 ) (5,370 ) Net income (loss) attributable to common stockholders 1,449 1,424 (789 ) 3,340 Less: Allocation to participating securities (120 ) (107 ) (182 ) (132 ) Net income (loss) available to common stockholders $ 1,329 $ 1,317 $ (971 ) $ 3,208 Denominator Basic and diluted weighted-average common shares 10,964 10,949 10,961 10,947 Basic and diluted earnings per common share $ 0.12 $ 0.12 $ (0.09 ) $ 0.29 The effects of restricted shares of common stock and restricted stock units outstanding were excluded from the calculation of diluted income per share for all periods presented because their effects were not dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 11 - Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, receivables and payables are reasonable estimates of their fair value as of September 30, 2016 due to their short-term nature (Level 1). The fair value of the Company’s mortgage and other notes receivable as of September 30, 2016 is estimated by using Level 2 inputs such as discounting the estimated future cash flows using current market rates for similar loans that would be made to borrowers with similar credit ratings and for the same remaining maturities. At September 30, 2016, the Company’s indebtedness was comprised of borrowings under the Credit Facility that bear interest at LIBOR plus a margin. The fair value of borrowings on the Credit Facility is considered to be equivalent to their carrying value. Fair value estimates are made at a specific point in time, are subjective in nature, and involve uncertainties and matters of significant judgment. Settlement at such fair value amounts may not be possible. As of September 30, 2016, the fair value of the Company’s $10.0 million mortgage note receivable was estimated to be approximately $10.6 million.

Accounting Policies and Relat18

Accounting Policies and Related Matters (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Reclassifications	Reclassifications: Certain reclassifications have been made to the Consolidated Balance Sheet as of December 31, 2015 to conform to the 2016 presentation.
Recent Accounting Developments	Recent Accounting Developments: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” a comprehensive new revenue recognition standard that supersedes most of the existing revenue recognition guidance. This standard’s core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company’s revenues, are not within the scope of the new standard and will continue to be accounted for under existing standards. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred the effective date of this standard by one year. This standard is effective for public companies beginning after December 15, 2017 and interim periods therein for public companies. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company continues to evaluate this standard. However, the standard is not expected to have a significant impact on the Company’s consolidated financial position, results of operations and cash flows since the Company’s revenues consist primarily of rental income from leasing arrangements, which are specifically excluded from the guidance in ASU 2014-09. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which expands upon the guidance on the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. This guidance requires a retrospective application and is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest (Subtopic 835-30),” which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The Company adopted these standards on January 1, 2016, which did not have a significant impact on the Company’s consolidated financial position or results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer will be required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Entities will also be required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU were effective for fiscal years beginning January 1, 2016 and require the prospective application for adjustments to provisional amounts that occur after the effective date. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheet and making targeted improvements to lessor accounting. The guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance will be effective beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends the accounting for share-based payment transactions, including income tax effects, equity versus liability classification and classification on the statement of cash flows. The guidance is effective for annual and interim periods of public entities beginning January 1, 2017. For all other entities, the guidance is effective beginning January 1, 2018 and interim periods within fiscal years beginning January 1, 2019. Early adoption is permitted in any annual or interim period for which financial statements have not been issued or made available for issuance. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard also requires additional disclosures related to significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The amended guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2020 with early adoption permitted for the fiscal years, and interim periods within those fiscal years, beginning January 1, 2019. The Company is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements.

Investment Activity (Tables)

Investment Activity (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule of Revised Purchase Price Allocation of Properties	The revised allocations for these properties are as follows (dollars in thousands): Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Land $ 2,995 $ 991 $ 3,986 Buildings and improvements 11,760 10,235 21,995 Intangible lease assets - 7,946 7,946 Furniture, fixtures, and equipment 347 227 574 Total real estate properties acquired $ 15,102 $ 19,399 $ 34,501
Schedule of Change in Estimates of Purchase Price Allocation	The following table shows the impact of amounts recorded in the consolidated statement of operations for the nine months ended September 30, 2016 due to the change in the estimates of the purchase price allocations that would have been recorded in the consolidated statement of operations in prior periods had the adjustment to the provisional amounts been recognized as of the acquisition date (dollars in thousands). Kearny Mesa Vibra Rehabilitation Hospital of Amarillo Total Rental income $ - $ (127 ) $ (127 ) Depreciation and amortization 26 (79 ) (53 ) Net income attributable to common stockholders $ (26 ) $ (48 ) $ (74 )
Schedule of Future Minimum Payments for Operating Leases	Minimum cash rental payments due to the Company in future periods under operating leases for the Company’s properties that have non-cancelable terms extending beyond one year as of September 30, 2016 are as follows (dollars in thousands): For the year ending December 31: 2016 (remaining three months) $ 12,599 2017 50,509 2018 49,673 2019 50,172 2020 50,903 2021 51,705 Thereafter 497,999 Total $ 763,560
Sales Revenue, Net | Credit Concentration Risk
Concentrations of Credit Risks	The following table contains information regarding tenant concentration in the Company’s portfolio, based on the percentage of revenue for the nine months ended September 30, 2016 and 2015, related to tenants, or affiliated tenants, that exceed 10% of revenues. % of Total Revenue for the nine months ended September 30, 2016 2015 GruenePointe Holdings 30.2% (1) Life Generations Healthcare 18.3% 12.6% Fundamental Healthcare 17.5% 18.3% Vibra Healthcare 16.1% 20.1% LRMC (2) (1) 35.8% (1) Total revenue is less than 10%. (2) LRMC was the prior tenant at Lakeway Hospital, in which the Company owns a 51% interest through the Lakeway Partnership. The lease with LRMC was terminated on September 1, 2016. See “Lakeway Hospital Operator Change” above for further discussion.
Sales Revenue, Net | Geographic Concentration Risk
Concentrations of Credit Risks	The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of September 30, 2016, which includes percentage of rental income for the nine months ended September 30, 2016 and 2015 (dollars in thousands). % of Total Real % of Rental Income State Number of Properties Gross Investment Estate Property Investments Nine months ended September 30, 2016 Nine months ended September 30, 2015 Texas 14 $ 270,725 54.7% 55.6% 55.7% California 7 154,727 31.3% 30.0% 28.4% Nevada 2 49,422 10.0% 10.2% 10.4% South Carolina 1 20,000 4.0% 4.2% 5.5% 24 $ 494,874 100.0% 100.0% 100.0%

Real Estate Intangibles (Tables

Real Estate Intangibles (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Carrying Amount of Real Estate Intangible Assets	The following is a summary of the carrying amount of real estate intangible assets as of September 30, 2016 (dollars in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Life (Years) Above-market lease intangible $ 7,636 $ (509 ) $ 7,127 14.0 In-place leases 2,406 (829 ) 1,577 9.3 Leasing commissions 1,294 (355 ) 939 10.1 Legal/marketing fees 51 (18 ) 33 9.0 Total $ 11,387 $ (1,711 ) $ 9,676 12.8
Expected Amortization of Existing Real Estate Intangible Assets	The following table represents expected amortization of existing real estate intangible assets at September 30, 2016 (dollars in thousands): For the year ending December 31: 2016 (remaining three months) $ 279 2017 1,075 2018 707 2019 687 2020 687 2021 685 Thereafter 5,556 Total $ 9,676

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Other Assets [Abstract]
Schedule of Other Assets on Consolidated Balance Sheet	Items included in other assets on the Company’s consolidated balance sheets as of September 30, 2016 and December 31, 2015 are detailed in the table below (dollars in thousands): September 30, 2016 December 31, Surety bond deposit $ 9,410 $ - Tenant allowances and lease incentives, net 8,784 6,913 Capitalized pre-offering costs 5,896 3,659 Straight-line rent receivable 5,214 9,917 Deferred financing costs, net 1,885 2,521 Prepaid assets and deposits 1,455 1,009 Interest and accounts receivable 971 1,729 Pre-acquisition costs 826 939 Note receivable 450 500 Restricted cash 225 146 Corporate property, net 214 270 $ 35,330 $ 27,603

Incentive Plan (Tables)

Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Absolute and Relative TSR Thresholds	The absolute and relative TSR thresholds are as follows: Absolute TSR Award TSR Performance % of Award Earned 25.5% 0% 27.5% 25% 29.5% 50% 31.5% 75% 33.5% 100% Relative TSR Award MSCI US REIT Index Performance % of Award Earned = Index 0% Index +3% 50% Index +6% or greater 100%
Summary of Stock-Based Award Activity	The following summarizes the stock-based award activity for the nine months ended September 30, 2016 and 2015: 2016 2015 Vesting Based on Service Vesting Based on Market/Performance Conditions Vesting Based on Service Vesting Based on Market/Performance Conditions Non-vested awards at beginning of period 280,080 359,025 129,555 158,927 Awarded 16,665 - 158,396 200,098 Vested (14,812 ) - (6,481 ) - Forfeited - - - - Non-vested awards at end of period 281,933 359,025 281,470 359,025

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments for Operating Leases	The Company’s future minimum lease payments for its operating leases as of September 30, 2016 were as follows (dollars in thousands): For the year ending: 2016 (remaining three months) $ 82 2017 334 2018 342 2019 351 2020 203 2021 176 Thereafter 19,979 Total $ 21,467

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of Earnings Per Common Share	The following table sets forth the computation of earnings per common share for the three and nine months ended September 30, 2016 and 2015 (amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September Numerator: 2016 2015 2016 2015 Net income $ 4,734 $ 5,228 $ 5,940 $ 11,366 Less: Net (income) loss attributable to noncontrolling interest (821 ) (1,339 ) 665 (2,656 ) Less: Dividends on preferred shares (2,464 ) (2,465 ) (7,394 ) (5,370 ) Net income (loss) attributable to common stockholders 1,449 1,424 (789 ) 3,340 Less: Allocation to participating securities (120 ) (107 ) (182 ) (132 ) Net income (loss) available to common stockholders $ 1,329 $ 1,317 $ (971 ) $ 3,208 Denominator Basic and diluted weighted-average common shares 10,964 10,949 10,961 10,947 Basic and diluted earnings per common share $ 0.12 $ 0.12 $ (0.09 ) $ 0.29

Organization and Nature of Bu25

Organization and Nature of Business - Additional Information (Details) $ / shares in Units, $ in Millions	Oct. 28, 2016shares	Oct. 04, 2016USD ($)$ / sharesshares	Jun. 30, 2016USD ($)	Sep. 30, 2016USD ($)PropertyMortgage
Organization And Nature Of Business [Line Items]
Investment in real estate properties and mortgage note receivable				$ 482.5
Number of real estate properties | Property				24
Number of mortgage notes receivable | Mortgage				1
Ownership interest				100.00%
Percentage of annual taxable income distribute to shareholders.				90.00%
IPO
Organization And Nature Of Business [Line Items]
Offering expenses paid			$ 3.3
Subsequent Event | IPO
Organization And Nature Of Business [Line Items]
Common stock issued | shares		19,000,000
Common stock issued, price per share | $ / shares		$ 12
Aggregate net proceeds from offering		$ 226.2
Preferred stock redemption amount		131.4
Repayment of secured credit facility		$ 94.8
Subsequent Event | Over-Allotment Option
Organization And Nature Of Business [Line Items]
Common stock issued | shares	1,434,567
Lakeway Regional Medical Center
Organization And Nature Of Business [Line Items]
Ownership percentage by parent				51.00%

Investment Activity - Lakeway H

Investment Activity - Lakeway Hospital Operator Change - Additional Information (Details) - USD ($)	Sep. 01, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2016
Baylor Scott And White Health
Investment Activity [Line Items]
Date of tenant change	Sep. 1, 2016
Initial lease term						15 years
Lease term, description						an initial term of 15 years with two ten-year extension options.
Annual base lease rent	$ 12,800,000
Purchase option, description						The lease provides that, commencing after completion of the third year of the lease and subject to certain conditions, the Baylor Lessee has the option to purchase Lakeway Hospital at a price equal to the aggregate base rent payable under the lease for the 12-month period following the date of the written notice from Baylor divided by
Tenant allowances paid	$ 2,300,000
Baylor Scott And White Health | Second Anniversary
Investment Activity [Line Items]
Lease rent increase percentage	1.75%
Baylor Scott And White Health | Third Anniversary
Investment Activity [Line Items]
Lease rent increase percentage	2.00%
Baylor Scott And White Health | Anniversary Thereafter
Investment Activity [Line Items]
Lease rent increase percentage	2.50%
Baylor Scott And White Health | After Completion Of Third Lease Year And Before Completion Of Tenth Lease Year
Investment Activity [Line Items]
Purchase price percentage	6.50%
Baylor Scott And White Health | After Completion Of Third Lease Year And Before Completion Of Tenth Lease Year | Maximum
Investment Activity [Line Items]
Purchase option amount	$ 203,600,000
Baylor Scott And White Health | Anniversary Thereafter
Investment Activity [Line Items]
Purchase price percentage	7.00%
Lakeway Regional Medical Center
Investment Activity [Line Items]
Deferred payment lease base rent		$ 3,500,000	$ 1,700,000
Reduced monthly base rent due				$ 500,000	$ 500,000
Stabilized monthly lease rent		1,100,000
Lease termination receivable			1,500,000
Bad debt expense			$ 200,000
Deferred payment unrecognized						$ 1,800,000
Straight-line rent receivable written off		7,000,000
Lakeway Regional Medical Center | Noncontrolling Interest
Investment Activity [Line Items]
Straight-line rent receivable written off		$ 3,600,000

Investment Activity - Adjustmen

Investment Activity - Adjustments to Purchase Price Allocations of 2015 Acquisitions - Additional Information (Details) - Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Business acquisition, land	$ 3,986	$ 4,600
Business acquisition, buildings and improvements	21,995	$ 39,900
Elimination of earn-out consideration	$ 10,000

Investment Activity - Schedule

Investment Activity - Schedule of Revised Purchase Price Allocation of Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Kearny Mesa
Business Acquisition [Line Items]
Land	$ 2,995
Buildings and improvements	11,760
Furniture, fixtures, and equipment	347
Total real estate properties acquired	15,102
Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Land	991
Buildings and improvements	10,235
Intangible lease assets	7,946
Furniture, fixtures, and equipment	227
Total real estate properties acquired	19,399
Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Land	3,986	$ 4,600
Buildings and improvements	21,995	$ 39,900
Intangible lease assets	7,946
Furniture, fixtures, and equipment	574
Total real estate properties acquired	$ 34,501

Investment Activity - Schedul29

Investment Activity - Schedule of Change in Estimates of Purchase Price Allocation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Kearny Mesa
Business Acquisition [Line Items]
Depreciation and amortization	$ 26
Net income attributable to common stockholders	(26)
Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Rental income	(127)
Depreciation and amortization	(79)
Net income attributable to common stockholders	(48)
Kearny Mesa and Vibra Rehabilitation Hospital of Amarillo
Business Acquisition [Line Items]
Rental income	(127)
Depreciation and amortization	(53)
Net income attributable to common stockholders	$ (74)

Investment Activity - Adjustm30

Investment Activity - Adjustments to Kearny Mesa - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Kearny Mesa
Business Acquisition [Line Items]
Reduction of depreciation expense related to earn-out assets	$ 0.2

Investment Activity - Leasing O

Investment Activity - Leasing Operations - Additional Information (Details)	9 Months Ended
	Sep. 30, 2016
Leases Operating [Abstract]
Leasing expiration period description	fixed-term operating leases with expiration dates through 2031.

Investment Activity - Schedul32

Investment Activity - Schedule of Future Minimum Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2016USD ($)
Leases Operating [Abstract]
2016 (remaining three months)	$ 12,599
2,017	50,509
2,018	49,673
2,019	50,172
2,020	50,903
2,021	51,705
Thereafter	497,999
Total	$ 763,560

Investment Activity - Schedul33

Investment Activity - Schedule of Tenant Concentration of Revenue (Details) - Credit Concentration Risk - Sales Revenue, Net		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015
Gruene Pointe Holdings
Concentration Risk [Line Items]
Concentration risk percentage		30.20%
Life Generations Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		18.30%	12.60%
Fundamental Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		17.50%	18.30%
Vibra Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		16.10%	20.10%
LRMC
Concentration Risk [Line Items]
Concentration risk percentage	[1]		35.80%
[1]	LRMC was the prior tenant at Lakeway Hospital, in which the Company owns a 51% interest through the Lakeway Partnership. The lease with LRMC was terminated on September 1, 2016. See “Lakeway Hospital Operator Change” above for further discussion.

Investment Activity - Schedul34

Investment Activity - Schedule of Tenant Concentration of Revenue (Parenthetical) (Details)	Sep. 30, 2016
LRMC
Concentration Risk [Line Items]
Ownership percentage by parent	51.00%

Investment Activity - Schedul35

Investment Activity - Schedule of Geographic Concentration of Properties (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)Property	Sep. 30, 2015
Concentration Risk [Line Items]
Number of real estate properties | Property	24
Gross Investment | $	$ 494,874
Percentage of total Estate Property Investments	100.00%
Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	100.00%	100.00%
Texas
Concentration Risk [Line Items]
Number of real estate properties | Property	14
Gross Investment | $	$ 270,725
Percentage of total Estate Property Investments	54.70%
Texas | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	55.60%	55.70%
California
Concentration Risk [Line Items]
Number of real estate properties | Property	7
Gross Investment | $	$ 154,727
Percentage of total Estate Property Investments	31.30%
California | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	30.00%	28.40%
Nevada
Concentration Risk [Line Items]
Number of real estate properties | Property	2
Gross Investment | $	$ 49,422
Percentage of total Estate Property Investments	10.00%
Nevada | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	10.20%	10.40%
South Carolina
Concentration Risk [Line Items]
Number of real estate properties | Property	1
Gross Investment | $	$ 20,000
Percentage of total Estate Property Investments	4.00%
South Carolina | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of rental Income	4.20%	5.50%

Real Estate Intangibles- Summar

Real Estate Intangibles- Summary of Carrying Amount of Real Estate Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 11,387	$ 3,441
Real Estate
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	11,387
Accumulated Amortization	(1,711)
Net Intangibles	$ 9,676
Weighted Average Life (Years)	12 years 9 months 18 days
Real Estate | Above-Market Lease Intangible
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 7,636
Accumulated Amortization	(509)
Net Intangibles	$ 7,127
Weighted Average Life (Years)	14 years
Real Estate | In-place Leases
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 2,406
Accumulated Amortization	(829)
Net Intangibles	$ 1,577
Weighted Average Life (Years)	9 years 3 months 18 days
Real Estate | Leasing Commissions
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 1,294
Accumulated Amortization	(355)
Net Intangibles	$ 939
Weighted Average Life (Years)	10 years 1 month 6 days
Real Estate | Legal/Marketing Fees
Finite Lived Intangible Assets [Line Items]
Intangible lease assets	$ 51
Accumulated Amortization	(18)
Net Intangibles	$ 33
Weighted Average Life (Years)	9 years

Real Estate Intangible - Additi

Real Estate Intangible - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Real Estate
Finite Lived Intangible Assets [Line Items]
Amortization expense on intangible assets	$ 0.3	$ 0.1	$ 1	$ 0.4

Real Estate Intangibles - Expec

Real Estate Intangibles - Expected Amortization of Existing Real Estate Intangible Assets (Details) - Real Estate $ in Thousands	Sep. 30, 2016USD ($)
Finite Lived Intangible Assets [Line Items]
2016 (remaining three months)	$ 279
2,017	1,075
2,018	707
2,019	687
2,020	687
2,021	685
Thereafter	5,556
Net Intangibles	$ 9,676

Debt - Additional Information (

Debt - Additional Information (Details) - Secured Revolving Credit facility - USD ($)	Nov. 01, 2016	May 17, 2016	Oct. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Nov. 08, 2016	May 31, 2016	May 16, 2016
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 300,000,000		$ 600,000,000		$ 600,000,000				$ 375,000,000
Line of credit facility maturity date						2017-11
Commitment fees paid		$ 1,400,000
Debt instrument description						The Credit Facility has two 12-month extension options, subject to certain conditions, including the payment of a 0.15% extension fee at each extension.
Debt instrument, extension fee						0.15%
Deferred financing costs				4,900,000		$ 4,900,000
Amortization expense of deferred financing costs				$ 400,000	$ 700,000	$ 2,000,000	$ 1,300,000
Unamortized deferred financing costs									$ 300,000
Debt instrument, weighted average interest				3.80%		3.80%
Line of credit facility outstanding borrowing capacity				$ 244,000,000		$ 244,000,000
Subsequent Event
Debt Instrument [Line Items]
Debt Instrument interest rate	2.50%
Line of credit facility outstanding borrowing capacity								$ 149,200,000
Repayment of secured credit facility			$ 94,800,000
Line of credit facility additional maximum borrowing capacity								$ 69,200,000
Minimum
Debt Instrument [Line Items]
Line of credit facility unused fees						0.25%
Line of credit facility usage fees						50.00%
Maximum
Debt Instrument [Line Items]
Line of credit facility unused fees						0.35%
Line of credit facility usage fees						50.00%
LIBOR | Minimum
Debt Instrument [Line Items]
Debt instrument interest rate		2.75%
LIBOR | Minimum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate	2.00%
LIBOR | Maximum
Debt Instrument [Line Items]
Debt instrument interest rate		3.75%
LIBOR | Maximum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate	2.50%
Base Rate | Minimum
Debt Instrument [Line Items]
Debt instrument interest rate		1.75%
Base Rate | Minimum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate	1.00%
Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument interest rate		2.75%
Base Rate | Maximum | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate	1.50%

Other Assets - Summary of Other

Other Assets - Summary of Other Assets on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Assets
Other Assets	$ 35,330	$ 27,603
Other Assets
Other Assets
Surety bond deposit	9,410
Tenant allowances and lease incentives, net	8,784	6,913
Capitalized pre-offering costs	5,896	3,659
Straight-line rent receivable	5,214	9,917
Deferred financing costs	1,885	2,521
Prepaid assets and deposits	1,455	1,009
Interest and accounts receivable	971	1,729
Pre-acquisition costs	826	939
Note receivable	450	500
Restricted cash	225	146
Corporate property, net	$ 214	$ 270

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - Other Assets $ in Thousands	Sep. 30, 2016USD ($)
Other Assets
Surety bond deposit	$ 9,410
Lakeway Regional Medical Center
Other Assets
Surety bond deposit	$ 9,410

Incentive Plan - Additional Inf

Incentive Plan - Additional Information (Details) $ / shares in Units, $ in Millions	Jan. 02, 2016USD ($)anniversarieshares	Sep. 30, 2016USD ($)anniversarie$ / sharesshares	Sep. 30, 2015USD ($)$ / shares	Sep. 30, 2016USD ($)anniversarie$ / sharesshares	Sep. 30, 2015USD ($)$ / shares
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of vesting anniversaries | anniversarie		3		3
Restricted Stock Units | Executive Officers and Certain Other Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted | shares				359,025
Restricted Stock Units | Non-Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average share outstanding price per share/unit | $ / shares		$ 7.91	$ 7.91	$ 7.91	$ 7.91
Restricted Stock Units | Total Return to Stockholders (TSR)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shares vested upon achievement				50.00%
Restricted Stock Units | MSCI US REIT Index (RMS)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shares vested upon achievement				50.00%
Restricted Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Remaining unrecognized cost from stock-based awards | $		$ 3.4	$ 5.7	$ 3.4	$ 5.7
Recognized weighted average period				1 year 6 months
Restricted Shares | General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash compensation expense recognized | $		$ 0.6	$ 0.5	$ 1.9	$ 1.2
Restricted Shares | Non-Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted | shares	16,665
Number of vesting anniversaries | anniversarie	3
Total value of awards approximate | $	$ 0.3
Weighted average share outstanding price per share/unit | $ / shares		$ 15.48	$ 15.48	$ 15.48	$ 15.48
2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares reserved for potential future issuance | shares		693,082		693,082

Incentive Plan - Schedule of Ab

Incentive Plan - Schedule of Absolute and Relative TSR Thresholds (Details) - Restricted Stock Units	9 Months Ended
	Sep. 30, 2016
Absolute TSR Award Performance At 25.5%
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of performance	25.50%
Percentage of award earned	0.00%
Absolute TSR Award Performance At 27.5%
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of performance	27.50%
Percentage of award earned	25.00%
Absolute TSR Award Performance At 29.5%
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of performance	29.50%
Percentage of award earned	50.00%
Absolute TSR Award Performance At 31.5%
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of performance	31.50%
Percentage of award earned	75.00%
Absolute TSR Award Performance At 33.5%
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of performance	33.50%
Percentage of award earned	100.00%
Relative TSR Award, MSCI US REIT Index Performance = Index
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of award earned	0.00%
Relative TSR Award, MSCI US REIT Index Performance Index +3%
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of award earned	50.00%
Relative TSR Award, MSCI US REIT Index Performance Index +6% or Greater
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of award earned	100.00%

Incentive Plan - Summary of Sto

Incentive Plan - Summary of Stock-Based Award Activity (Details) - Restricted Shares - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Vesting Based on Service
Share Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Non-vested, Number of Shares [Roll Forward]
Non-vested awards at beginning of period	280,080	129,555
Awarded	16,665	158,396
Vested	(14,812)	(6,481)
Non-vested awards at end of period	281,933	281,470
Vesting Based on Market/Performance Conditions
Share Based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Non-vested, Number of Shares [Roll Forward]
Non-vested awards at beginning of period	359,025	158,927
Awarded		200,098
Non-vested awards at end of period	359,025	359,025

Commitment and Contingencies -

Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 01, 2016	Feb. 02, 2016
Surety Bond
Loss Contingencies [Line Items]
Interest and other income	$ 0.2		$ 0.2
Surety Bond | Lakeway Regional Medical Center
Loss Contingencies [Line Items]
Surety bond deposit received					$ 9.4	$ 9.4
Corporate Office Lease
Loss Contingencies [Line Items]
Operating lease expiration period			2,020
Percentage increase on operating lease	3.00%		3.00%
Operating leases rent expense	$ 0.1	$ 0.1	$ 0.4	$ 0.3
Ground Lease
Loss Contingencies [Line Items]
Operating lease expiration period			2,081
Percentage increase on operating lease	2.00%		2.00%

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2016USD ($)
Commitments And Contingencies Disclosure [Abstract]
2016 (remaining three months)	$ 82
2,017	334
2,018	342
2,019	351
2,020	203
2,021	176
Thereafter	19,979
Total	$ 21,467

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)

Nov. 08, 2016

Oct. 04, 2016

Sep. 15, 2016

Aug. 03, 2016

Apr. 28, 2016

Dec. 09, 2015

Apr. 02, 2015

Sep. 30, 2016

Sep. 30, 2015

Sep. 30, 2016

Sep. 30, 2015

Dec. 31, 2015

Mar. 11, 2015

Class Of Stock [Line Items]

Preferred stock shares sold

125,000

125,000

125,000

Dividends declared per common share

$ 0.30

$ 0.42

$ 0.38

$ 0.63

$ 0.55

Distributions to noncontrolling interest

$ 1,573,000

Common Stock

Class Of Stock [Line Items]

Dividend declaration date

Dec. 9, 2015

Dividend payment date

Jan. 14, 2016

Dividend record date

Dec. 31, 2015

Regular Quarterly Dividend Declared

Class Of Stock [Line Items]

Dividends declared per common share

0.21

Additional Special Dividend Declared

Class Of Stock [Line Items]

Dividends declared per common share

$ 0.09

Cash Dividend Declared January 1, 2016 to March 31, 2016

Class Of Stock [Line Items]

Dividends declared per common share

$ 0.21

Cash Dividend Declared January 1, 2016 to March 31, 2016 | Common Stock

Class Of Stock [Line Items]

Dividend declaration date

Apr. 28, 2016

Dividend payment date

May 19, 2016

Dividend record date

May 10, 2016

Cash Dividends Declared April 1, 2016 to June 30, 2016

Class Of Stock [Line Items]

Dividends declared per common share

$ 0.21

Cash Dividends Declared April 1, 2016 to June 30, 2016 | Common Stock

Class Of Stock [Line Items]

Dividend declaration date

Aug. 3, 2016

Dividend payment date

Aug. 30, 2016

Dividend record date

Aug. 17, 2016

Cash Dividend Declared July 1, 2016 to September 30, 2016 Member

Class Of Stock [Line Items]

Dividend declaration date

Sep. 15, 2016

Dividends declared per common share

$ 0.21

Dividend payment date

Oct. 4, 2016

Dividend record date

Sep. 23, 2016

Subsequent Event

Class Of Stock [Line Items]

Preferred stock liquidation preference

$ 1,000

7.875% Series B Redeemable Cumulative Preferred Stock

Class Of Stock [Line Items]

Preferred stock dividend rate

7.875%

Preferred stock liquidation preference

$ 1,000

$ 1,000

7.875% Series B Redeemable Cumulative Preferred Stock | IPO | Subsequent Event

Class Of Stock [Line Items]

Preferred stock redemption amount

$ 131,300,000

Preferred stock special dividend redemption rate percentage

5.00%

Accrued and unpaid dividends

$ 900,000

Dividends

$ 800,000

Carter Validus | 7.875% Series B Redeemable Cumulative Preferred Stock

Class Of Stock [Line Items]

Preferred stock shares sold

125,000

Preferred stock dividend rate

7.875%

Liquidation preference per share

$ 1,000

$ 1,000

Preferred stock gross proceeds

$ 125,000,000

Lakeway Partnership | Subsequent Event

Class Of Stock [Line Items]

Distributions to noncontrolling interest

$ 200,000

Earnings Per Share - Computatio

Earnings Per Share - Computation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 4,734	$ 5,228	$ 5,940	$ 11,366
Less: Net (income) loss attributable to noncontrolling interest	(821)	(1,339)	665	(2,656)
Less: Preferred stock dividends	(2,464)	(2,465)	(7,394)	(5,370)
Net income (loss) attributable to common stockholders	1,449	1,424	(789)	3,340
Less: Allocation to participating securities	(120)	(107)	(182)	(132)
Net income (loss) available to common stockholders	$ 1,329	$ 1,317	$ (971)	$ 3,208
Basic and diluted weighted-average common shares	10,964	10,949	10,961	10,947
Basic and diluted earnings per common share	$ 0.12	$ 0.12	$ (0.09)	$ 0.29

Fair Value of Financial Instr49

Fair Value of Financial Instruments - Additional information (Details) $ in Millions	Sep. 30, 2016USD ($)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of mortgage note receivable	$ 10
Estimated Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of mortgage note receivable	$ 10.6