MedEquities Realty Trust 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		31,774,499

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Real estate properties
Land	$ 39,584	$ 39,584
Building and improvements	441,100	440,927
Intangible lease assets	11,387	11,387
Furniture, fixtures, and equipment	2,976	2,976
Less accumulated depreciation and amortization	(29,777)	(26,052)
Total real estate properties, net	465,270	468,822
Mortgage notes receivable, net	22,417	9,915
Cash and cash equivalents	7,806	9,509
Other assets, net	33,202	31,507
Total Assets	528,695	519,753
Liabilities
Debt, net	155,699	144,000
Accounts payable and accrued liabilities	14,414	15,244
Deferred revenue	1,365	2,251
Total liabilities	171,478	161,495
Commitments and contingencies
Equity
Common stock, $0.01 par value. Authorized 400,000 shares; 31,775 and 31,757 issued and outstanding at March 31, 2017 and December 31, 2016, respectively	314	314
Additional paid in capital	373,518	372,615
Dividends declared	(47,719)	(40,951)
Retained earnings	28,305	23,774
Accumulated other comprehensive income	370
Total MedEquities Realty Trust, Inc. stockholders' equity	354,788	355,752
Noncontrolling interest	2,429	2,506
Total equity	357,217	358,258
Total Liabilities and Equity	$ 528,695	$ 519,753

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	31,775,000	31,757,000
Common stock, shares outstanding	31,775,000	31,757,000

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Rental income	$ 13,839	$ 14,604
Total revenues	14,282	14,848
Expenses
Depreciation and amortization	3,618	3,659
Property related	352	321
Acquisition related	66	17
Franchise, excise and other taxes	86	105
General and administrative	3,171	2,771
Total operating expenses	7,293	6,873
Operating income	6,989	7,975
Other income (expense)
Interest and other income	1	1
Interest expense	(1,515)	(3,125)
Other income (expense)	(1,514)	(3,124)
Net income	5,475	4,851
Less: Preferred stock dividends		(2,465)
Less: Net income attributable to noncontrolling interest	(944)	(1,355)
Net income (loss) attributable to common stockholders	$ 4,531	$ 1,031
Net income (loss) attributable to common stockholders per share
Basic and diluted	$ 0.14	$ 0.09
Weighted average shares outstanding
Basic	31,415	10,959
Diluted	31,415	11,054
Dividends declared per common share	$ 0.21
Mortgage Notes Receivable
Revenues
Interest income	$ 433	$ 229
Notes Receivable
Revenues
Interest income	$ 10	$ 15

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 5,475	$ 4,851
Other comprehensive income:
Increase in fair value of cash flow hedge	370
Total other comprehensive income	370
Comprehensive income	5,845	4,851
Less: comprehensive income attributable to noncontrolling interest	(944)	(1,355)
Comprehensive income attributable to common stockholders	$ 4,901	$ 3,496

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Dividends Declared	Accumulated other comprehensive income	Non-controlling Interest
Balance at Dec. 31, 2016	$ 358,258	$ 314	$ 372,615	$ 23,774	$ (40,951)		$ 2,506
Balance (in shares) at Dec. 31, 2016		31,757
Grants of restricted stock (in shares)		34
Issuance of common stock, net of costs	(3)		(3)
Repurchase and cancellation of restricted stock	(50)		(50)
Repurchase and cancellation of restricted stock (in shares)		(5)
Retirement of common stock (in shares)		(11)
Other comprehensive income	370					$ 370
Distributions to noncontrolling interest	(1,021)						(1,021)
Stock-based compensation	956		956
Net income	5,475			4,531			944
Dividends to common stockholders	(6,768)				(6,768)
Balance at Mar. 31, 2017	$ 357,217	$ 314	$ 373,518	$ 28,305	$ (47,719)	$ 370	$ 2,429
Balance (in shares) at Mar. 31, 2017		31,775

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net income	$ 5,475	$ 4,851
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	4,217	4,650
Stock-based compensation	956	647
Straight-line rent receivable	(1,243)	(514)
Straight-line rent liability	40	42
Write-off of pre-offering costs		89
Changes in operating assets and liabilities
Other assets	1,523	(1,880)
Accounts payable and accrued liabilities	(1,102)	(1,134)
Deferred revenues	(878)	(2,346)
Net cash provided by operating activities	8,988	4,405
Investing activities
Acquisitions of real estate		(60)
Capital expenditures for real estate	(173)
Funding of mortgage note and note receivable	(12,500)	(1,662)
Repayments of notes receivable	50	1,662
Capitalized pre-acquisition costs, net	(109)	(230)
Capital expenditures for corporate property	(4)
Net cash used in investing activities	(12,736)	(290)
Financing activities
Proceeds from borrowings on term loan	125,000
Net repayments on secured revolving credit facility	(112,500)
Dividends paid to common stockholders	(6,647)	(3,370)
Deferred loan costs	(2,711)	(6)
Distributions to noncontrolling interest	(1,021)	(703)
Cancellation of restricted stock	(50)
Offering costs related to initial public offering of common stock	(26)
Dividends paid to preferred stockholders		(2,461)
Capitalized pre-offering costs		(258)
Net cash provided by (used in) financing activities	2,045	(6,798)
Decrease in cash and cash equivalents	(1,703)	(2,683)
Cash and cash equivalents, beginning of period	9,509	12,474
Cash and cash equivalents, end of period	7,806	9,791
Supplemental Cash Flow Information
Interest paid	775	2,378
Accrued pre-acquisition costs	65	38
Accrued deferred loan costs	$ 27
Accrued pre-offering costs		875
Texas gross margins taxes paid, net of reimbursement		$ 63

Organization and Nature of Busi

Organization and Nature of Business	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017, the Company had investments of $487.7 million, net in 24 real estate properties and two mortgage notes receivable. The Company owns 100% of all of its properties and investments, other than Baylor Scott & White Medical Center - Lakeway (“Lakeway Hospital”), in which the Company owns a 51% interest through a consolidated partnership (the “Lakeway Partnership”). The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal tax purposes.

Accounting Policies and Related

Accounting Policies and Related Matters	3 Months Ended
	Mar. 31, 2017
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 consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2016, included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2017. The interim 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, 2016 included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2017. During the three months ended March 31, 2017, there were no material changes to these policies except as noted below. Derivatives: In the normal course of business, the Company is subject to risk from adverse fluctuations in interest rates. The Company has chosen to manage this risk through the use of derivative financial instruments, primarily interest rate swaps. Counterparties to these contracts are major financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company does not use derivative instruments for trading or speculative purposes. The Company’s objective in managing exposure to interest risk is to limit the impact on cash flows. To qualify for hedge accounting, the Company’s interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transactions must be, and be expected to remain, probable of occurring in accordance with our related assertions. All of the Company’s hedges are cash flow hedges. The Company recognizes all derivative instruments as assets or liabilities at their fair value in the Consolidated Balance Sheets. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the criteria of hedge accounting are recognized in earnings. For derivatives designed in qualified cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income, whereas the change in fair value of the ineffective portion is recognized in earnings. Gains and losses are reclassified from accumulated other comprehensive income into earnings once the underlying hedged transaction is recognized in earnings. 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. 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 beginning after January 1, 2018 and interim periods therein. 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 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 became effective for annual and interim periods beginning January 1, 2017. The adoption of this guidance had no impact on our results of operations, financial condition, statement of cash flows or liquidity. 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 and expects that it will not have a material impact. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows - Restricted Cash,” which required that a statement of cash flows explains the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2018. The adoption of this guidance will change the presentation of restricted cash on the Company’s consolidated statement of cash flows; however, it will have no impact on the Company’s results of operations, financial condition, or liquidity.

Investment Activity

Investment Activity	3 Months Ended
	Mar. 31, 2017
Investment Activity [Abstract]
Investment Activity	Note 3 – Investment Activity 2017 Mortgage Note Receivable Funding On January 30, 2017, the Company invested $12.5 million through a newly originated interest-only loan at an interest rate of 9.6% and secured by a first mortgage on a licensed general acute care surgical hospital that consists of 23,300 square feet with four operating rooms, two special procedure rooms, four inpatient rooms and four full-size extended recovery rooms. Beginning on October 1, 2017, the Company will have the exclusive option to purchase the hospital for $12.5 million. The interest-only loan matures on February 1, 2018, with an automatic extension until September 30, 2019 if the Company does not exercise its purchase option prior to maturity. 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 three months ended March 31, 2017 and 2016, related to tenants, or affiliated tenants, that exceed 10% of revenues. % of Total Revenue for the three months ended March 31, 2017 2016 BSW Health 25.8% - GruenePointe Holdings 24.9% 23.9% Life Generations Healthcare 15.1% 14.5% Fundamental Healthcare 14.2% 13.9% Vibra Healthcare 13.6% 12.2% LRMC (1) - 31.7% (1) Lakeway Regional Medical Center (“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 and a new lease with Baylor Scott & White Health (“BSW Health”) commenced on September 1, 2016. The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of March 31, 2017, which includes percentage of rental income for the three months ended March 31, 2017 and 2016 (dollars in thousands). % of Total % of Rental Income State Number of Properties Gross Investment Real Estate Property Investments Three months ended March 31, 2017 Three months ended March 31, 2016 Texas 14 $ 270,898 54.7% 63.1% 64.9% California 7 154,727 31.3% 25.1% 23.7% Nevada 2 49,422 10.0% 8.3% 8.1% South Carolina 1 20,000 4.0% 3.5% 3.3% 24 $ 495,047 100.0% 100.0% 100.0%

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	Note 4 – Debt The table below details the Company’s debt balance at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Term loan- secured $ 125,000 $ - Revolving credit facility- secured 31,500 144,000 Unamortized deferred financing costs (801 ) - $ 155,699 $ 144,000 On February 10, 2017, the Company entered into a second amended and restated credit agreement, which provides for a $300 million revolving credit facility that matures in February 2021 and a $125 million term loan that matures in February 2022. The revolving credit facility has one 12-month extension option, subject to certain conditions, including the payment of a 0.15% extension fee. The new facility replaced the Company’s prior $300 million secured revolving credit facility, which was scheduled to mature in November 2017. Amounts outstanding under the amended credit facility bear interest at LIBOR plus a margin between 1.75% and 3.00% or a base rate plus a margin between 0.75% and 2.00%, in each case depending on the Company’s leverage. The revolving credit facility includes an unused facility fee of 0.25% of the amount of the unused portion of the revolving credit facility if amounts borrowed are equal to or greater than 50.0% of the total commitments or 0.35% if amounts borrowed are less than 50.0% of such commitments. Prior to the February 10, 2017 amendment, amounts outstanding under the facility bore interest at LIBOR plus a margin between 2.75% and 3.75% or a base rate plus a margin between 2.00% and 2.50%, in each case depending on the Company’s leverage. The amended credit agreement also includes an accordion feature that allows the total borrowing capacity, including the term loan component, to be increased to up to $700 million, subject to certain conditions, including obtaining additional commitments from lenders. The amount available to borrow under the amended credit facility is limited according to a borrowing base valuation of assets owned by subsidiaries of our operating partnership. The amended credit facility is secured by a pledge of the Company’s operating partnership’s equity interests in its subsidiaries that own borrowing base assets, which is substantially all of the Company’s assets. The amended credit agreement includes the ability to convert to an unsecured credit facility when certain conditions are met, including the Company having a minimum gross asset value of $1.0 billion, a minimum borrowing base of $500 million, less than 50% leverage and continued compliance with the covenants under the amended credit agreement. At March 31, 2017 and 2016, the weighted average interest rate under the credit agreement was 2.6% and 3.7%, respectively. The Company incurred fees associated with the second amended and restated credit facility of approximately $2.7 million, of which $1.9 million is associated with the revolving credit facility. Total costs related to the revolving credit facility were $3.2 million, gross ($3.1 million, net). These costs are included in other assets on the consolidated balance sheet at March 31, 2017 and will be amortized to interest expense through February 2021, the maturity date of the amended revolving credit facility. The total amount of deferred financing costs associated with the term loan was $0.8 million at March 31, 2017. These costs are netted against the balance outstanding on the term loan on the Company’s consolidated balance sheet and will be amortized to interest expense through February 2022, the maturity date of the term loan. The Company recognized amortization expense of deferred financing costs, included in interest expense on the consolidated statements of income, of $0.3 million and $0.7 million for the three months ended March 31, 2017 and 2016, respectively. The maximum available capacity under the credit facility was $261.9 million at March 31, 2017. At May 8, 2017, the Company had $156.5 million Interest Rate Swap Agreements To mitigate exposure to interest rate risk, on February 10, 2017, the Company entered into four interest rate swap agreements, effective April 10, 2017, on the full $125 million term loan to fix the variable LIBOR interest rate at 1.84%, plus the LIBOR spread under the amended credit agreement, which was 1.75% at May 8, 2017. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Amounts reported in accumulated other comprehensive income related to these interest rate swaps will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates that an additional $0.7 million will be reclassified from other comprehensive income as an increase to interest expense. The fair value of the Company’s derivative financial instruments at March 31, 2017 was approximately $0.4 million and was included in other assets on the consolidated balance sheet. The Company did not have any derivative financial instruments at December 31, 2016. The Company did not have any amounts reclassified from accumulated comprehensive income into income related to its derivative relationships for the three months ended March 31, 2017. As of March 31, 2017, the Company did not have any derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk. Covenants The second amended and restated credit agreement contains customary financial and operating covenants, including covenants relating to the Company’s total leverage ratio, fixed charge coverage ratio, tangible net worth, maximum distribution/payout ratio and restrictions on recourse debt, secured debt and certain investments. The credit agreement also contains customary events of default, in certain cases subject to customary cure periods, 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 agreement. The Company was in compliance with all financial covenants as of March 31, 2017.

Incentive Plan

Incentive Plan	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Incentive Plan	Note 5 - 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 March 31, 2017, the Plan had 1,356,723 shares authorized for issuance with 261,930 shares available for future issuance, subject to certain adjustments set forth in the Plan. On May 3, 2017, stockholders approved amendments to the Plan to increase the number of shares of the Company’s common stock authorized for issuance under the Plan by 2,000,000 shares to an aggregate of 3,356,723 shares and extend the term of the Plan to May 2, 2027. Restricted Stock Awards of restricted stock are awards of the Company’s common stock that are subject to restrictions on transferability and other restrictions as established by the Company’s compensation committee on the date of grant that are generally subject to forfeiture if employment terminates prior to vesting. Upon vesting, all restrictions would lapse. Except to the extent restricted under the award agreement, a participant awarded restricted stock will have all of the rights of a stockholder as to those shares, including, without limitation, the right to vote and the right to receive dividends on the shares. The awards generally cliff vest over three years or vest ratably over three years from the date of grant. The value of the awards is determined based on the market value of the Company’s common stock on the date of grant. The Company expenses the cost of restricted stock ratably over the vesting period. Restricted Stock Units The Company’s restricted stock unit (“RSU”) awards represent the right to receive unrestricted shares of common stock based on the achievement of Company performance objectives as determined by the Company’s compensation committee. Grants of RSUs prior to 2016 generally entitle recipients to shares of common stock equal to 0% up to 100% of the number of units granted at the vesting date, based on two independent criteria measured over a three-year period – (i) the Company’s absolute total stockholder return (“TSR”) and (ii) Company’s TSR relative to the MSCI US REIT Index (symbol: RMS). Grants of RSUs in 2016, granted on December 30, 2016, generally entitle recipients to shares of common stock equal to 0% up to 150% of the number of units granted at the vesting date, based on four independent criteria measured over a three-year period – (i) the Company’s growth in gross real estate investments, (ii) the Company’s growth in Adjusted Funds From Operations (“AFFO”) per share, (iii) the Company’s absolute TSR and (iv) the Company’s TSR relative to the FTSE NAREIT Equity Healthcare REIT Index. RSUs are not eligible to vote or subject to receive dividend equivalents prior to vesting. Dividend equivalents are credited to the recipient and are paid only to the extent the applicable criteria are met, the RSUs vest, and the related common stock is issued. The grant date fair value of RSUs subject to vesting based on the Company’s absolute TSR and TSR relative to a REIT index is estimated using a Monte Carlo simulation that utilizes inputs such as expected future volatility of the Company’s common stock, volatilities of certain peer companies included in the applicable indexes upon which the relative TSR performance is measured, estimated risk-free interest rate and the expected service periods of three years. The grant date fair value of RSUs subject to vesting based on the Company’s growth in gross real estate investments and the Company’s growth in AFFO per share is determined based on the market value of the Company’s common stock on the date of grant. The Company assesses the probability of achievement of the growth in gross real estate investments and growth in AFFO per share and records expense for the awards based on the probable achievement of these metrics. The Company recognizes the cost of restricted stock units ratably over the vesting period. The following table summarizes the stock-based award activity for the three months ended March 31, 2017 and 2016: Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Restricted Stock Award RSU Awards Weighted-Average Grant Date Fair Value Per RSU Outstanding as of December 31, 2016 352,793 $ 14.57 575,775 $ 8.51 Granted 33,780 11.10 - - Vested (11,110 ) 15.00 - - Cancelled (5,368 ) 15.00 - - Forfeited - - - - Outstanding as of March 31, 2017 370,095 $ 14.24 575,775 $ 8.51 Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Restricted Stock Award RSU Awards Weighted-Average Grant Date Fair Value Per RSU Outstanding as of December 31, 2015 280,080 $ 15.49 359,025 $ 7.91 Granted 16,665 15.00 - - Vested (5,555 ) 15.00 - - Forfeited - - - - Outstanding as of March 31, 2016 291,190 $ 15.47 359,025 $ 7.91 All of the shares that vested during the three months ended March 31, 2017 and 2016 related to grants of restricted shares to non-employee directors. RSUs are included in the preceding table as if the participants earn shares equal to 100% of the units granted. All cancelled shares for the three months ended March 31, 2017 relate to non-employee director compensation and is described in Note 7 under the heading “Arrangements with BlueMountain.” The table below summarizes compensation expense related to share-based payments, included in general and administrative expenses, for the three months ended March 31, 2017 and 2016 (in thousands): For the three months ended March 31, 2017 2016 Restricted stock $ 548 $ 410 Restricted stock units 408 237 Stock-based compensation $ 956 $ 647 The remaining unrecognized cost from stock-based awards at March 31, 2017 was approximately $5.0 million and will be recognized over a weighted-average period of 1.9 years.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 - Commitments and Contingencies Commitments In April 2017, the Company agreed to make available an aggregate amount of up to $11.0 million for the construction and equipping of certain new surgical suites at Mountain’s Edge Hospital, subject to certain terms and conditions. The Company will provide advances over an estimated 12-month period as construction occurs. The base rent associated with this property will be increased by an amount equal to 9.25% of the amount advanced, as advances are made. As of May 8, 2017, approximately $0.4 million has been funded pursuant to this commitment. 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	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity	Note 7 - Equity Common Stock Dividends On January 3, 2017, the Company’s board of directors declared a cash dividend of $0.21 per shares. The dividend was paid on January 31, 2017 to stockholders of record on January 17, 2017. On May 3, 2017, the Company’s board of directors declared a cash dividend of $0.21 per share. The dividend will be paid on May 31, 2017 to stockholders of record on May 17, 2017. Arrangements with BlueMountain In connection with BlueMountain Capital Management, LLC’s (“BlueMountain”) purchase of shares of the Company’s common stock in a private placement in July 2014, the Company entered into the BlueMountain Rights Agreement with BlueMountain, which currently allows for BlueMountain to designate two directors on the Company’s board of directors. Pursuant to BlueMountain’s internal policies, all compensation payable to the BlueMountain director designees who are employees of BlueMountain is paid or transferred to BlueMountain, including an aggregate of 16,108 restricted shares of common stock granted to the BlueMountain director designees in 2014 and 2015. Due to adverse tax implications for BlueMountain related to its receipt of restricted stock, the Company and BlueMountain agreed to the following, which occurred on March 28, 2017: (i) BlueMountain forfeited 10,740 vested shares of common stock previously granted to the BlueMountain director designees; (ii) the Company repurchased and cancelled the remaining 5,368 unvested restricted shares of common stock held by BlueMountain for approximately $50,000; and (iii) BlueMountain repaid to the Company approximately $29,000, which represented all dividends previously paid on the 16,108 restricted shares previously granted to the BlueMountain director designees. Noncontrolling interest The Company owns Lakeway Hospital through a consolidated partnership, which, based on a total equity cash contribution of $2.0 million, is owned 51% by the Company and 49% by an entity that is owned indirectly by a physicians group and a non-physician investor. The partnership was formed on March 20, 2015. The Company’s equity contribution to the Lakeway Partnership was $1.0 million, and the Company’s transfer of the original $50.0 million note and $23.0 million of cash to the Lakeway Partnership was structured as an intercompany $73.0 million loan (the “Lakeway Intercompany Mortgage Loan”) to the Lakeway Partnership that is secured by a first mortgage lien on Lakeway Hospital. The Lakeway Intercompany Mortgage Loan has a ten-year term and requires payments of principal and interest at a rate of 8.0% per annum based on a 25-year amortization schedule. The interest rate on the Lakeway Intercompany Mortgage Loan will reset after five years based upon then-current market rates. At March 31, 2017 and December 31, 2016, the Lakeway Intercompany Mortgage Loan had an outstanding principal balance of $71.4 million and $71.8 million, respectively. Distributions to the noncontrolling interest holder in the Lakeway Partnership subsequent to March 31, 2017 were approximately $0.2 million.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Note 8 - 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 months ended March 31, 2017 and 2016 (amounts in thousands, except per share amounts): Three Months Ended March 31, Numerator: 2017 2016 Net income $ 5,475 $ 4,851 Less: Net income attributable to noncontrolling interest (944 ) (1,355 ) Less: Dividends on preferred shares - (2,465 ) Net income attributable to common stockholders 4,531 1,031 Less: Allocation to participating securities (78 ) - Net income available to common stockholders $ 4,453 $ 1,031 Denominator Basic weighted-average common shares 31,415 10,959 Dilutive potential common shares - 95 Diluted weighted-average common shares 31,415 11,054 Basic and diluted earnings per common share $ 0.14 $ 0.09 The effects of restricted shares of common stock and restricted stock units outstanding were excluded from the calculation of diluted income per share for the three months ended March 31, 2017 because their effects were not dilutive. The effects of restricted stock units outstanding were excluded from the calculation of diluted income per share for the three months ended March 31, 2016 because their effects were not dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 9 - Fair Value of Financial Instruments Financial Assets and Liabilities Measured at Fair Value The Company’s financial assets and liabilities measured at fair value on a recurring basis currently include derivative financial instruments. These derivative financial instruments are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 inputs. The market inputs are utilized in the discounted cash flow calculation considering the instrument’s term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation model for interest rate swaps are observable in active markets and are classified as Level 2 in the hierarchy. The fair value of the Company’s interest rate swaps asset, which is included in other assets on the consolidated balance sheet, is approximately $0.4 million at March 31, 2017. The Company did not have any financial assets or liabilities measured at fair value at December 31, 2016. Financial Assets and Liabilities Not Carried at Fair Value The carrying amounts of cash and cash equivalents, restricted cash, receivables and payables are reasonable estimates of their fair value as of March 31, 2017 due to their short-term nature (Level 1). The fair value of the Company’s mortgage and other notes receivable as of March 31, 2017 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 March 31, 2017, the Company’s indebtedness was comprised of borrowings under the credit facility, including both a term loan and revolver component, that bear interest at LIBOR plus a margin. The fair value of borrowings under the credit facility is considered to be equivalent to their carrying value as the debt is at variable rates currently available and resets on a monthly basis. 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 March 31, 2017, the fair value of the Company’s $22.5 million mortgage notes receivable was estimated to be approximately $22.6 million.

Accounting Policies and Relat17

Accounting Policies and Related Matters (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Derivatives	Derivatives: In the normal course of business, the Company is subject to risk from adverse fluctuations in interest rates. The Company has chosen to manage this risk through the use of derivative financial instruments, primarily interest rate swaps. Counterparties to these contracts are major financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company does not use derivative instruments for trading or speculative purposes. The Company’s objective in managing exposure to interest risk is to limit the impact on cash flows. To qualify for hedge accounting, the Company’s interest rate swaps must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception of a qualifying cash flow hedging relationship, the underlying transactions must be, and be expected to remain, probable of occurring in accordance with our related assertions. All of the Company’s hedges are cash flow hedges. The Company recognizes all derivative instruments as assets or liabilities at their fair value in the Consolidated Balance Sheets. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the criteria of hedge accounting are recognized in earnings. For derivatives designed in qualified cash flow hedging relationships, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive income, whereas the change in fair value of the ineffective portion is recognized in earnings. Gains and losses are reclassified from accumulated other comprehensive income into earnings once the underlying hedged transaction is recognized in earnings.
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. 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 beginning after January 1, 2018 and interim periods therein. 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 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 became effective for annual and interim periods beginning January 1, 2017. The adoption of this guidance had no impact on our results of operations, financial condition, statement of cash flows or liquidity. 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 and expects that it will not have a material impact. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows - Restricted Cash,” which required that a statement of cash flows explains the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for fiscal years, and interim periods within those years, beginning January 1, 2018. The adoption of this guidance will change the presentation of restricted cash on the Company’s consolidated statement of cash flows; however, it will have no impact on the Company’s results of operations, financial condition, or liquidity.

Investment Activity (Tables)

Investment Activity (Tables) - Sales Revenue, Net	3 Months Ended
	Mar. 31, 2017
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 three months ended March 31, 2017 and 2016, related to tenants, or affiliated tenants, that exceed 10% of revenues. % of Total Revenue for the three months ended March 31, 2017 2016 BSW Health 25.8% - GruenePointe Holdings 24.9% 23.9% Life Generations Healthcare 15.1% 14.5% Fundamental Healthcare 14.2% 13.9% Vibra Healthcare 13.6% 12.2% LRMC (1) - 31.7% (1) Lakeway Regional Medical Center (“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 and a new lease with Baylor Scott & White Health (“BSW Health”) commenced on September 1, 2016.
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 March 31, 2017, which includes percentage of rental income for the three months ended March 31, 2017 and 2016 (dollars in thousands). % of Total % of Rental Income State Number of Properties Gross Investment Real Estate Property Investments Three months ended March 31, 2017 Three months ended March 31, 2016 Texas 14 $ 270,898 54.7% 63.1% 64.9% California 7 154,727 31.3% 25.1% 23.7% Nevada 2 49,422 10.0% 8.3% 8.1% South Carolina 1 20,000 4.0% 3.5% 3.3% 24 $ 495,047 100.0% 100.0% 100.0%

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Debt Balance	The table below details the Company’s debt balance at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Term loan- secured $ 125,000 $ - Revolving credit facility- secured 31,500 144,000 Unamortized deferred financing costs (801 ) - $ 155,699 $ 144,000

Incentive Plan (Tables)

Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Award Activity	The following table summarizes the stock-based award activity for the three months ended March 31, 2017 and 2016: Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Restricted Stock Award RSU Awards Weighted-Average Grant Date Fair Value Per RSU Outstanding as of December 31, 2016 352,793 $ 14.57 575,775 $ 8.51 Granted 33,780 11.10 - - Vested (11,110 ) 15.00 - - Cancelled (5,368 ) 15.00 - - Forfeited - - - - Outstanding as of March 31, 2017 370,095 $ 14.24 575,775 $ 8.51 Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Restricted Stock Award RSU Awards Weighted-Average Grant Date Fair Value Per RSU Outstanding as of December 31, 2015 280,080 $ 15.49 359,025 $ 7.91 Granted 16,665 15.00 - - Vested (5,555 ) 15.00 - - Forfeited - - - - Outstanding as of March 31, 2016 291,190 $ 15.47 359,025 $ 7.91
Summary of Share Based Compensation Expense	The table below summarizes compensation expense related to share-based payments, included in general and administrative expenses, for the three months ended March 31, 2017 and 2016 (in thousands): For the three months ended March 31, 2017 2016 Restricted stock $ 548 $ 410 Restricted stock units 408 237 Stock-based compensation $ 956 $ 647

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 (amounts in thousands, except per share amounts): Three Months Ended March 31, Numerator: 2017 2016 Net income $ 5,475 $ 4,851 Less: Net income attributable to noncontrolling interest (944 ) (1,355 ) Less: Dividends on preferred shares - (2,465 ) Net income attributable to common stockholders 4,531 1,031 Less: Allocation to participating securities (78 ) - Net income available to common stockholders $ 4,453 $ 1,031 Denominator Basic weighted-average common shares 31,415 10,959 Dilutive potential common shares - 95 Diluted weighted-average common shares 31,415 11,054 Basic and diluted earnings per common share $ 0.14 $ 0.09

Organization and Nature of Bu22

Organization and Nature of Business - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)PropertyMortgage
Organization And Nature Of Business [Line Items]
Investment in real estate properties and mortgage notes receivable | $	$ 487.7
Number of real estate properties | Property	24
Number of mortgage notes receivable | Mortgage	2
Ownership interest	100.00%
Lakeway Hospital
Organization And Nature Of Business [Line Items]
Ownership percentage by parent	51.00%

Investment Activity - 2017 Mort

Investment Activity - 2017 Mortgage Note Receivable Funding - Additional Information (Details) $ in Thousands	Jan. 30, 2017USD ($)ft²Room	Mar. 31, 2017USD ($)	Oct. 01, 2017USD ($)	Dec. 31, 2016USD ($)
Investment Activity [Line Items]
Mortgage notes receivable, net | $	$ 12,500	$ 22,417		$ 9,915
Interest-only loan interest rate	9.60%
Area of hospital building | ft²	23,300
Number of operating rooms	4
Number of special procedure rooms	2
Number of inpatient rooms	4
Number of full-size extended recovery rooms	4
Purchase option description		Beginning on October 1, 2017, the Company will have the exclusive option to purchase the hospital for $12.5 million.
Interest-only loan maturity date		Feb. 1, 2018
Interest-only loan maturity automatic extensions date		Sep. 30, 2019
Scenario, Forecast
Investment Activity [Line Items]
Purchase option amount | $			$ 12,500

Investment Activity - Schedule

Investment Activity - Schedule of Tenant Concentration of Revenue (Details) - Credit Concentration Risk - Sales Revenue, Net		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
BSW Health
Concentration Risk [Line Items]
Concentration risk percentage		25.80%
Gruene Pointe Holdings
Concentration Risk [Line Items]
Concentration risk percentage		24.90%	23.90%
Life Generations Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		15.10%	14.50%
Fundamental Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		14.20%	13.90%
Vibra Healthcare
Concentration Risk [Line Items]
Concentration risk percentage		13.60%	12.20%
LRMC
Concentration Risk [Line Items]
Concentration risk percentage	[1]		31.70%
[1]	Lakeway Regional Medical Center (“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 and a new lease with Baylor Scott & White Health (“BSW Health”) commenced on September 1, 2016.

Investment Activity - Schedul25

Investment Activity - Schedule of Tenant Concentration of Revenue (Parenthetical) (Details)	Mar. 31, 2017
LRMC
Concentration Risk [Line Items]
Ownership percentage by parent	51.00%

Investment Activity - Schedul26

Investment Activity - Schedule of Geographic Concentration of Properties (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Property	Mar. 31, 2016
Concentration Risk [Line Items]
Number of real estate properties | Property	24
Gross Investment | $	$ 495,047
Percentage of Total Real 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 | $	$ 270,898
Percentage of Total Real Estate Property Investments	54.70%
Texas | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	63.10%	64.90%
California
Concentration Risk [Line Items]
Number of real estate properties | Property	7
Gross Investment | $	$ 154,727
Percentage of Total Real Estate Property Investments	31.30%
California | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	25.10%	23.70%
Nevada
Concentration Risk [Line Items]
Number of real estate properties | Property	2
Gross Investment | $	$ 49,422
Percentage of Total Real Estate Property Investments	10.00%
Nevada | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	8.30%	8.10%
South Carolina
Concentration Risk [Line Items]
Number of real estate properties | Property	1
Gross Investment | $	$ 20,000
Percentage of Total Real Estate Property Investments	4.00%
South Carolina | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	3.50%	3.30%

Debt - Summary of Debt (Detail)

Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Unamortized deferred financing costs	$ (801)
Debt, net	155,699	$ 144,000
Term loan- secured
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity	125,000
Revolving credit facility- secured
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 31,500	$ 144,000

Debt - Additional Information (

Debt - Additional Information (Details)	May 08, 2017USD ($)	Feb. 10, 2017USD ($)Agreement	Feb. 09, 2017USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity			$ 300,000,000	$ 261,900,000
Line of credit facility maturity date			2017-11
Debt instrument description				The revolving credit facility has one 12-month extension option, subject to certain conditions, including the payment of a 0.15% extension fee.
Debt instrument, extension fee				0.15%
Debt instrument collateral amount		$ 1,000,000,000
Line of credit facility minimum borrowing base		500,000,000
Commitment fees paid		$ 2,700,000
Amortization expense of deferred financing costs				$ 300,000	$ 700,000
Number of interest rate swap agreements | Agreement		4
Interest rate swap agreement effective date		Apr. 10, 2017
Estimated additional reclassification from other comprehensive income to interest expense				700,000
Derivatives net liability position including accrued interest but excluding adjustment for nonperformance risk				0
Derivative Relationships
Debt Instrument [Line Items]
Reclassification from accumulated comprehensive income				0
Interest Rate Swap Agreements | Other Assets
Debt Instrument [Line Items]
Fair value of derivative financial instruments				$ 400,000
Subsequent Event
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 156,500,000
Maximum
Debt Instrument [Line Items]
Line of credit facility leverage ratio		50.00%
LIBOR | Minimum
Debt Instrument [Line Items]
Debt instrument interest rate		1.75%	2.75%
LIBOR | Maximum
Debt Instrument [Line Items]
Debt instrument interest rate		3.00%	3.75%
Base Rate | Minimum
Debt Instrument [Line Items]
Debt instrument interest rate		0.75%	2.00%
Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument interest rate		2.00%	2.50%
Term Loan
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 125,000,000
Line of credit facility maturity date				2022-02
Deferred financing costs, net				$ 800,000
Term Loan | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility outstanding amount	125,000,000
Accordion Feature Debt
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		700,000,000
Secured Revolving Credit facility
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		300,000,000
Line of credit facility maturity date				2021-02
Debt instrument, weighted average interest				2.60%	3.70%
Commitment fees paid		$ 1,900,000
Costs related to revolving credit facility, gross				$ 3,200,000
Costs related to revolving credit facility, net				3,100,000
Line of credit facility outstanding amount				$ 31,500,000		$ 144,000,000
Secured Revolving Credit facility | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 31,500,000
Line of credit facility interest rate	2.74%
Line of credit facility additional borrowing capacity	$ 105,400,000
Secured Revolving Credit facility | Minimum
Debt Instrument [Line Items]
Line of credit facility unused fees				0.25%
Line of credit facility usage fees				50.00%
Secured Revolving Credit facility | Maximum
Debt Instrument [Line Items]
Line of credit facility unused fees				0.35%
Line of credit facility usage fees				50.00%
Secured Revolving Credit facility | LIBOR
Debt Instrument [Line Items]
Debt instrument interest rate		1.84%
Secured Revolving Credit facility | LIBOR | Subsequent Event
Debt Instrument [Line Items]
Debt instrument interest rate	1.75%

Incentive Plan - Additional Inf

Incentive Plan - Additional Information (Details) - USD ($) $ in Millions	May 03, 2017	Dec. 30, 2016	Dec. 31, 2015	Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized cost from stock-based awards				$ 5
Weighted average recognition period				1 year 10 months 24 days
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards vesting description				The awards generally cliff vest over three years or vest ratably over three years from the date of grant.
Awards vesting period				3 years
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of units granted				100.00%
Awards measurement period		3 years	3 years
Expected service periods				3 years
Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of units granted		0.00%	0.00%
Restricted Stock Units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of units granted		150.00%	100.00%
2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized				1,356,723
Shares available for future issuance				261,930
Stock option plan expiration date				May 2, 2027
2014 Equity Incentive Plan | Subsequent Event
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized	3,356,723
2014 Equity Incentive Plan | Subsequent Event | Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase in shares authorized for issuance under the plan	2,000,000

Incentive Plan - Summary of Sto

Incentive Plan - Summary of Stock-Based Award Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restricted Stock Awards
Number of Shares
Outstanding at beginning of the period	352,793	280,080
Granted	33,780	16,665
Vested	(11,110)	(5,555)
Cancelled	(5,368)
Outstanding at end of the period	370,095	291,190
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of the period	$ 14.57	$ 15.49
Granted	11.10	15
Vested	15	15
Cancelled	15
Outstanding at end of the period	$ 14.24	$ 15.47
RSU Awards
Number of Shares
Outstanding at beginning of the period	575,775	359,025
Outstanding at end of the period	575,775	359,025
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of the period	$ 8.51	$ 7.91
Outstanding at end of the period	$ 8.51	$ 7.91

Incentive Plan - Summary of Com

Incentive Plan - Summary of Compensation Expense Related to Share-based Payments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	$ 956	$ 647
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	548	410
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	$ 408	$ 237

Commitment and Contingencies -

Commitment and Contingencies - Additional Information (Details) - Mountains' Edge Hospital - Subsequent Event - USD ($)	1 Months Ended
	Apr. 30, 2017	May 08, 2017
Loss Contingencies [Line Items]
Aggregate amount available for construction and equipping of new surgical suites	$ 11,000,000
Estimated period for construction	12 months
Percentage of base rent increased on amount advanced	9.25%
Fund available pursuant to the commitment for construction		$ 400,000

Equity - Additional Information

Equity - Additional Information (Details)	May 08, 2017USD ($)	May 03, 2017$ / shares	Jan. 30, 2017	Jan. 03, 2017$ / shares	Mar. 31, 2017USD ($)Director$ / sharesshares	Mar. 31, 2016shares	Dec. 31, 2015shares	Dec. 31, 2014shares	Dec. 31, 2016USD ($)
Class Of Stock [Line Items]
Dividends declared per common share | $ / shares				$ 0.21	$ 0.21
Interest-only loan interest rate			9.60%
Distributions to noncontrolling interest					$ 1,021,000
Lakeway Partnership
Class Of Stock [Line Items]
Cash contribution					$ 2,000,000
Ownership percentage by parent					51.00%
Equity method investment ownership percentage					49.00%
Investment in subsidiary by noncontrolling interest					$ 1,000,000
Lakeway mortgage note receivable foreclosure					50,000,000
Additional cash contribution to acquire real estate					$ 23,000,000
Intercompany Mortgage Loan, term					10 years
Interest-only loan interest rate					8.00%
Intercompany Mortgage Loan, amortization schedule					25 years
Intercompany Mortgage Loan, outstanding principal balance					$ 71,400,000				$ 71,800,000
Lakeway Partnership | First Mortgage
Class Of Stock [Line Items]
Intercompany Mortgage Loan					$ 73,000,000
Restricted Stock
Class Of Stock [Line Items]
Common stock granted | shares					33,780	16,665
BlueMountain Capital Management LLC | Board of Directors | Restricted Stock
Class Of Stock [Line Items]
Number of directors designated | Director					2
Common stock granted | shares							16,108	16,108
Forfeited vested shares | shares					10,740
Common stock repurchased and cancelled, shares | shares					5,368
Common stock repurchased and cancelled, value					$ 50,000
Repayment of dividends					$ 29,000
Subsequent Event | Lakeway Partnership
Class Of Stock [Line Items]
Distributions to noncontrolling interest	$ 200,000
Common Stock
Class Of Stock [Line Items]
Dividend declaration date				Jan. 3, 2017
Dividend payment date				Jan. 31, 2017
Dividend record date				Jan. 17, 2017
Common stock repurchased and cancelled, shares | shares					11,000
Common Stock | Subsequent Event
Class Of Stock [Line Items]
Dividend declaration date		May 3, 2017
Dividends declared per common share | $ / shares		$ 0.21
Dividend payment date		May 31, 2017
Dividend record date		May 17, 2017

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
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income	$ 5,475	$ 4,851
Less: Net income attributable to noncontrolling interest	(944)	(1,355)
Less: Dividends on preferred shares		(2,465)
Net income (loss) attributable to common stockholders	4,531	1,031
Less: Allocation to participating securities	(78)
Net income available to common stockholders	$ 4,453	$ 1,031
Basic weighted-average common shares	31,415	10,959
Dilutive potential common shares		95
Diluted weighted-average common shares	31,415	11,054
Basic and diluted earnings per common share	$ 0.14	$ 0.09

Fair Value of Financial Instr35

Fair Value of Financial Instruments - Additional information (Details) - USD ($)	Mar. 31, 2017	Jan. 30, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Financial assets measured at fair value			$ 0
Financial liabilities measured at fair value			0
Mortgage notes receivable, net	$ 22,417,000	$ 12,500,000	$ 9,915,000
Estimated Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of mortgage notes receivable	22,600,000
Interest Rate Swap Agreements | Other Assets
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of derivative financial instruments	$ 400,000