MedEquities Realty Trust 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 03, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
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	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,886,684

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Real estate properties
Land	$ 43,181	$ 43,180
Building and improvements	505,699	505,623
Intangible lease assets	11,387	11,387
Furniture, fixtures, and equipment	3,538	3,538
Less accumulated depreciation and amortization	(46,286)	(41,984)
Total real estate properties, net	517,519	521,744
Mortgage notes receivable, net	41,513	18,557
Cash and cash equivalents	5,917	12,640
Other assets, net	32,729	28,662
Total Assets	597,678	581,603
Liabilities
Debt, net	232,065	215,523
Accounts payable and accrued liabilities	6,204	6,605
Deferred revenue	1,587	2,722
Total liabilities	239,856	224,850
Commitments and contingencies
Equity
Common stock, $0.01 par value. Authorized 400,000 shares; 31,887 and 31,836 issued and outstanding at March 31, 2018 and December 31, 2017, respectively	314	314
Additional paid in capital	376,702	375,690
Dividends declared	(74,525)	(67,691)
Retained earnings	49,365	44,196
Accumulated other comprehensive income	3,034	1,247
Total MedEquities Realty Trust, Inc. stockholders' equity	354,890	353,756
Noncontrolling interest	2,932	2,997
Total equity	357,822	356,753
Total Liabilities and Equity	$ 597,678	$ 581,603

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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	31,887,000	31,836,000
Common stock, shares outstanding	31,887,000	31,836,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Rental income	$ 15,929	$ 13,839
Total revenues	16,716	14,282
Expenses
Depreciation and amortization	4,194	3,618
Property related	322	352
Acquisition related	108	66
Franchise, excise and other taxes	71	86
General and administrative	3,316	3,171
Total operating expenses	8,011	7,293
Operating income	8,705	6,989
Other income (expense)
Interest and other income	7	1
Interest expense	(2,558)	(1,515)
Other income (expense)	(2,551)	(1,514)
Net income	6,154	5,475
Less: Net income attributable to noncontrolling interest	(985)	(944)
Net income attributable to common stockholders	$ 5,169	$ 4,531
Net income attributable to common stockholders per share
Basic and diluted	$ 0.16	$ 0.14
Weighted average shares outstanding
Basic	31,550	31,415
Diluted	31,610	31,415
Dividends declared per common share	$ 0.21	$ 0.21
Mortgage Notes Receivable
Revenues
Interest income	$ 787	$ 433
Notes Receivable
Revenues
Interest income		$ 10

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 6,154	$ 5,475
Other comprehensive income:
Increase in fair value of cash flow hedge	1,787	370
Total other comprehensive income	1,787	370
Comprehensive income	7,941	5,845
Less: comprehensive income attributable to noncontrolling interest	(985)	(944)
Comprehensive income attributable to MedEquities Realty Trust, Inc.	$ 6,956	$ 4,901

Consolidated Statement of Equit

Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Dividends Declared	Accumulated other comprehensive loss	Non-Controlling Interest
Balance at Dec. 31, 2017	$ 356,753	$ 314	$ 375,690	$ 44,196	$ (67,691)	$ 1,247	$ 2,997
Balance (in shares) at Dec. 31, 2017		31,836
Grants of restricted stock (in shares)		47
Vesting of restricted stock units (in shares)		8
Shares surrendered for taxes upon vesting	(44)		(44)
Shares surrendered for taxes upon vesting (in shares)		(4)
Other comprehensive income	1,787					1,787
Distributions to noncontrolling interest	(1,050)						(1,050)
Stock-based compensation	1,056		1,056
Net income	6,154			5,169			985
Dividends to common stockholders	(6,834)				(6,834)
Balance at Mar. 31, 2018	$ 357,822	$ 314	$ 376,702	$ 49,365	$ (74,525)	$ 3,034	$ 2,932
Balance (in shares) at Mar. 31, 2018		31,887

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net income	$ 6,154	$ 5,475
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	4,712	4,217
Stock-based compensation	1,056	956
Straight-line rent receivable	(1,702)	(1,243)
Straight-line rent liability	38	40
Construction mortgage interest income	(235)
Write-off of pre-acquisition costs	13
Changes in operating assets and liabilities
Other assets	(602)	1,261
Accounts payable and accrued liabilities	(469)	(1,102)
Deferred revenues	(1,126)	(878)
Net cash provided by operating activities	7,839	8,726
Investing activities
Acquisitions of real estate	(82)
Capital expenditures for real estate	(59)	(173)
Funding of mortgage notes and note receivable	(22,711)	(12,500)
Repayments of notes receivable		50
Capitalized pre-acquisition costs, net	(305)	(109)
Capital expenditures for corporate property		(4)
Net cash used in investing activities	(23,157)	(12,736)
Financing activities
Net borrowings (repayments) on secured revolving credit facility	16,500	(112,500)
Dividends paid to common stockholders	(6,710)	(6,647)
Distributions to noncontrolling interest	(1,050)	(1,021)
Deferred loan costs	(65)	(2,711)
Taxes remitted upon vesting of restricted stock	(62)
Capitalized pre-offering costs	(18)
Proceeds from borrowings on term loan		125,000
Cancellation of restricted stock		(50)
Offering costs		(26)
Net cash provided by financing activities	8,595	2,045
Decrease in cash, cash equivalents, and restricted cash	(6,723)	(1,965)
Cash, cash equivalents and restricted cash at beginning of period	12,640	9,771
Cash, cash equivalents and restricted cash at end of period	5,917	7,806
Supplemental Cash Flow Information
Interest paid	2,359	775
Accrued pre-acquisition costs	$ 64	65
Accrued deferred loan costs		$ 27

Organization and Nature of Busi

Organization and Nature of Business	3 Months Ended
	Mar. 31, 2018
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, 2018, the Company had investments of $559.0 million, net in 32 real estate properties and six 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”). All of the Company’s assets are held by, and its operations conducted through, its operating partnership, MedEquities Realty Operating Partnership, LP, which is a 100% owned subsidiary of the Company. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.

Accounting Policies and Related

Accounting Policies and Related Matters	3 Months Ended
	Mar. 31, 2018
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, 2017, included in the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2018. 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, 2017 included in the Company’s 2017 Annual Report on Form 10-K filed with the SEC on February 21, 2018. During the three months ended March 31, 2018, there were no material changes to these policies except as noted below. Recent Accounting Developments: On January 1, 2018, the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows - Restricted Cash,” became effective for the Company. This guidance requires that a statement of cash flows explain 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 consolidated statement of cash flows for the three months ended March 31, 2017 reflects an increase in the beginning of period cash, cash equivalents and restricted cash line item and a decrease in the change in other assets line item, each of approximately $0.3 million, as a result of the adoption of this new guidance. On January 1, 2018, the FASB’s new revenue recognition standard included in Accounting Standards Codification (“ASC”) 606 , Revenue from Contacts with Customers, In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to align better a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of early adopting the new standard using a modified retrospective transition method in any interim period after issuance of the update, or alternatively requires adoption for fiscal years beginning January 1, 2019. The Company adopted the new standard on January 1, 2018, which had no impact on the Company’s consolidated financial statements. 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 expects to adopt this standard on January 1, 2019. The Company does not anticipate significant changes in the timing of income from its leases with tenants. However, the Company will be required to recognize right of use assets and related lease liabilities on its consolidated balances sheets in circumstances where the Company is the lessee. As of March 31, 2018, the Company was the lessee under two leases, one ground lease and a lease for its corporate office space, which are expected to result in approximately $0.5 million in rent expense for the year ended December 31, 2018. The Company does not anticipate that the adoption of this standard will have a material effect on its financial condition or results of operations. The Company is in the process of determining the amount of the right of use assets and related lease liabilities that will be recognized upon adoption. 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 evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements and currently expects that it will not have a material impact.

Investment Activity

Investment Activity	3 Months Ended
	Mar. 31, 2018
Investment Activity [Abstract]
Investment Activity	Note 3 – Investment Activity During the three months ended March 31, 2018, the Company originated three mortgage notes receivable and funded additional principal under an existing mortgage note receivable for a total additional investment of $21.3 million. Additional details regarding these investments are described in more detail below. On January 8, 2018, the Company closed on a construction mortgage receivable with a maximum principal amount of up to $19.0 million to Haven Behavioral Healthcare, Inc. to fund the purchase and conversion of an existing long-term acute care hospital to a 72-bed inpatient psychiatric hospital in Meridian, Idaho. The loan has a three-year term and an annual interest rate of 10.0%. Interest accrues monthly and is added to the outstanding balance of the mortgage note receivable. Upon completion of the planned renovation, the Company has the exclusive right to purchase the property, for a purchase price equal to the outstanding loan balance, in a sale-leaseback transaction with a 15-year triple-net master lease with an initial yield of 9.3%. The balance outstanding under this loan was approximately $7.9 million as of March 31, 2018. On January 31, 2018, the Company originated a $5.4 million mortgage note receivable to Louisville Rehab LP to partially fund the construction of a 42-bed, 57,275 square foot inpatient rehabilitation facility in Clarksville, Indiana. The note is secured by a second lien on the facility. The three-year loan has an annual interest rate of 9.5%, which has a claw-back feature that would equate to a 15.0% rate from inception of the loan should the Company elect not to exercise its purchase option. The Company has the exclusive option to purchase the new facility upon completion for approximately $26.0 million that would be leased pursuant to a 20-year triple-net master lease guaranteed by Cobalt Medical Partners and Cobalt Rehabilitation Hospitals at an initial lease rate of 9.0%. On February 16, 2018, the Company funded an additional $3.0 million under an existing mortgage note receivable with Medistar corporation, which is secured by land and an existing building in Webster, Texas that increased the total balance of the loan to $9.7 million. Effective with this additional funding, the interest rate under the loan increased from an annual interest rate of 10.0% to an annual interest rate of 12% and is payable upon maturity of the loan on December 31, 2018. On March 29, 2018, the Company originated a $5.0 million mortgage note receivable with a subsidiary real estate entity of GruenePointe Holdings, LLC, which is secured by a second lien on a skilled nursing and assisted living facility (“Adora Midtown”) and a first lien on an additional parcel of land in Dallas, Texas. The loan has a two-year term and accrues interest at an annual rate of 10% that is payable on the maturity date of March 29, 2020. The Company has an existing purchase option on Adora Midtown for a gross purchase price not to exceed approximately $28.0 million, plus an earnout based on the facility’s earnings before interest, taxes, depreciation, amortization and rent expense during the three years following the closing date of the acquisition. Construction Mortgage Notes Activity The Company has two construction mortgage loans with funding commitments of up to $25.0 million, which are detailed in the table below (dollars in thousands): Investment Origination Date Total Commitment Outstanding Balance at March 31, 2018 Sequel Construction Mortgage Loan October 2017 $ 6,000 $ 3,804 Haven Construction Mortgage Loan January 2018 19,000 7,853 Total $ 25,000 $ 11,657 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, 2018 and 2017, related to tenants, or affiliated tenants, that exceed 10% of revenues: % of Total Revenue for the three months ended March 31, 2018 2017 BSW Health 21.9% 25.8% Texas Ten Tenant 21.4% 24.9% Fundamental Healthcare 15.3% 14.2% Life Generations Healthcare 12.9% 15.1% Vibra Healthcare 11.4% 13.6% The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of March 31, 2018, which includes percentage of rental income for the three months ended March 31, 2018 and 2017 (dollars in thousands): % of Total % of Rental Income State Number of Properties Gross Investment Real Estate Property Investments Three months ended March 31, 2018 Three months ended March 31, 2017 Texas 17 $ 300,259 53.3% 59.1% 63.1% California 7 154,726 27.4% 21.6% 25.1% Nevada 4 63,648 11.3% 12.1% 8.3% South Carolina 1 20,000 3.5% 3.2% 3.5% Indiana 2 15,039 2.7% 2.4% - Connecticut 1 10,133 1.8% 1.6% - 32 $ 563,805 100.0% 100.0% 100.0%

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	Note 4 – Debt The table below details the Company’s debt balance at March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 December 31, 2017 Term loan- secured $ 125,000 $ 125,000 Revolving credit facility- secured 107,700 91,200 Unamortized deferred financing costs (635 ) (677 ) $ 232,065 $ 215,523 The Company’s second amended and restated credit agreement (the “credit agreement”) 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. At March 31, 2018 and 2017, the weighted-average interest rate under the credit agreement was 3.8% and 2.6%, respectively. Total costs related to the revolving credit facility at March 31, 2018 were $3.4 million, gross ($2.5 million, net). These costs are included in Other assets, net on the consolidated balance sheet at March 31, 2018 and will be amortized to interest expense through February 2021, the maturity date of the revolving credit facility. The total amount of deferred financing costs associated with the term loan at March 31, 2018 was $0.8 million, gross ($0.6 million, net). These costs are netted against the balance outstanding under 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 for both the three months ended March 31, 2018 and 2017. The maximum available capacity under the credit facility was $276.7 million at March 31, 2018. At May 10, 2018, the Company had $239.7 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 credit agreement, which was 2.00% at May 10, 2018. 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. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income. Those 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 $0.4 million will be reclassified from other comprehensive income as a decrease to interest expense. The fair value of the Company’s derivative financial instruments at March 31, 2018 and December 31, 2017 was an asset of $ 3.0 The table below details the location in the consolidated financial statements of the gain recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2018 and 2017 (dollars in thousands): Three months ended March 31, 2018 Three months ended March 31, 2017 Amount of gain recognized in other comprehensive income $ 1,709 $ 370 Amount of loss reclassified from accumulated other comprehensive income into interest expense (78 ) - Total change in accumulated other comprehensive income $ 1,787 $ 370 As of March 31, 2018, the Company did not have any derivatives in a net liability position including accrued interest but excluding any adjustments for nonperformance risk. Covenants The 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, 2018.

Incentive Plan

Incentive Plan	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Incentive Plan	N ote 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 units of limited partnership interest in the Company’s operating partnership. As of March 31, 2018, the Plan had 3,356,723 shares authorized for issuance with 1,927,194 shares available for future issuance, subject to certain adjustments set forth in the Plan. 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 RSUs 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) the Company’s TSR relative to the MSCI US REIT Index (symbol: RMS). Grants of RSUs during and subsequent to 2016 generally entitle recipients to shares of common stock equal to 0% up to 150% of the number of RSUs 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 RSUs ratably over the vesting period. The following table summarizes the stock-based award activity for the three months ended March 31, 2018 and 2017: 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, 2017 313,819 $ 13.42 660,598 $ 9.52 Granted 46,788 11.14 937 11.13 Vested (24,232 ) 13.27 (8,312 ) 9.35 Forfeited - - - - Outstanding as of March 31, 2018 336,375 $ 13.11 653,223 $ 9.53 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 - - Forfeited (5,368 ) 15.00 - - Outstanding as of March 31, 2017 370,095 $ 14.24 575,775 $ 8.51 Of the restricted shares and RSUs that vested during the three months ended March 31, 2018, 3,936 shares were surrendered by certain employees to satisfy their tax obligations. RSUs are included in the preceding tables as if the participants earn shares equal to 100% of the units granted. The RSUs shown as granted during the three months ended March 31, 2018 represent the additional 50% RSUs from the 2016 grant that vested for one former employee. The table below summarizes compensation expense related to share-based payments, included in general and administrative expenses, for the three months ended March 31, 2018 and 2017 (in thousands): For the three months ended March 31, 2018 2017 Restricted stock $ 492 $ 548 Restricted stock units 564 408 Stock-based compensation $ 1,056 $ 956 The remaining unrecognized cost from stock-based awards at March 31, 2018 was approximately $5.4 million and will be recognized over a weighted-average period of 2.0 years.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 - Commitments and Contingencies Commitments As detailed in Note 3 under the heading “—Construction Mortgage Notes Activity,” 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 as construction occurs, which is expected to occur through December 2018. The base rent associated with this property will be increased by an amount equal to 9.4% of the amount advanced, as advances are made. As of May 10, 2018, approximately $1.1 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, 2018
Equity [Abstract]
Equity	Note 7 - Equity Common Stock Dividends The following table reflects the common stock dividends paid during or related to 2018. Quarter Quarterly Dividend Date of Declaration Date of Record Date Paid/Payable 4th Quarter 2017 $ 0.21 February 7, 2018 February 19, 2018 March 5, 2018 1st Quarter 2018 $ 0.21 May 8, 2018 May 22, 2018 June 5, 2018

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
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 shares of 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, 2018 and 2017 (amounts in thousands, except per share amounts): Three Months Ended March 31, Numerator: 2018 2017 Net income $ 6,154 $ 5,475 Less: Net income attributable to noncontrolling interest (985 ) (944 ) Net income attributable to common stockholders 5,169 4,531 Less: Allocation to participating securities (71 ) (78 ) Net income available to common stockholders $ 5,098 $ 4,453 Denominator Basic weighted-average common shares 31,550 31,415 Dilutive potential common shares 60 - Diluted weighted-average common shares 31,610 31,415 Basic and diluted earnings per common share $ 0.16 $ 0.14 The effects of restricted shares of common stock and RSUs outstanding were excluded from the calculation of diluted earnings per common share for the three months ended March 31, 2017 because their effects were not dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
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, net on the consolidated balance sheets, was $3.0 million and $1.2 million at March 31, 2018 and December 31, 2017, respectively. See Note 4 for further discussion regarding the Company’s interest rate swap agreements. 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, 2018 due to their short-term nature (Level 1). The fair value of the Company’s mortgage and other notes receivable as of March 31, 2018 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. As of March 31, 2018, the fair value of the Company’s $41.8 million mortgage notes receivable was estimated to be approximately $41.5 million. At March 31, 2018, the Company’s indebtedness was comprised of borrowings under the credit facility that bear interest at LIBOR plus a margin (Level 2). The fair value of borrowings under the credit facility is considered to be equivalent to their carrying values 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.

Accounting Policies and Relat17

Accounting Policies and Related Matters (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Recent Accounting Developments	Recent Accounting Developments: On January 1, 2018, the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows - Restricted Cash,” became effective for the Company. This guidance requires that a statement of cash flows explain 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 consolidated statement of cash flows for the three months ended March 31, 2017 reflects an increase in the beginning of period cash, cash equivalents and restricted cash line item and a decrease in the change in other assets line item, each of approximately $0.3 million, as a result of the adoption of this new guidance. On January 1, 2018, the FASB’s new revenue recognition standard included in Accounting Standards Codification (“ASC”) 606 , Revenue from Contacts with Customers, In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to align better a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of early adopting the new standard using a modified retrospective transition method in any interim period after issuance of the update, or alternatively requires adoption for fiscal years beginning January 1, 2019. The Company adopted the new standard on January 1, 2018, which had no impact on the Company’s consolidated financial statements. 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 expects to adopt this standard on January 1, 2019. The Company does not anticipate significant changes in the timing of income from its leases with tenants. However, the Company will be required to recognize right of use assets and related lease liabilities on its consolidated balances sheets in circumstances where the Company is the lessee. As of March 31, 2018, the Company was the lessee under two leases, one ground lease and a lease for its corporate office space, which are expected to result in approximately $0.5 million in rent expense for the year ended December 31, 2018. The Company does not anticipate that the adoption of this standard will have a material effect on its financial condition or results of operations. The Company is in the process of determining the amount of the right of use assets and related lease liabilities that will be recognized upon adoption. 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 evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements and currently expects that it will not have a material impact.

Investment Activity (Tables)

Investment Activity (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of Construction Mortgage Loans With Funding Commitments	The Company has two construction mortgage loans with funding commitments of up to $25.0 million, which are detailed in the table below (dollars in thousands): Investment Origination Date Total Commitment Outstanding Balance at March 31, 2018 Sequel Construction Mortgage Loan October 2017 $ 6,000 $ 3,804 Haven Construction Mortgage Loan January 2018 19,000 7,853 Total $ 25,000 $ 11,657
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 three months ended March 31, 2018 and 2017, related to tenants, or affiliated tenants, that exceed 10% of revenues: % of Total Revenue for the three months ended March 31, 2018 2017 BSW Health 21.9% 25.8% Texas Ten Tenant 21.4% 24.9% Fundamental Healthcare 15.3% 14.2% Life Generations Healthcare 12.9% 15.1% Vibra Healthcare 11.4% 13.6%
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 March 31, 2018, which includes percentage of rental income for the three months ended March 31, 2018 and 2017 (dollars in thousands): % of Total % of Rental Income State Number of Properties Gross Investment Real Estate Property Investments Three months ended March 31, 2018 Three months ended March 31, 2017 Texas 17 $ 300,259 53.3% 59.1% 63.1% California 7 154,726 27.4% 21.6% 25.1% Nevada 4 63,648 11.3% 12.1% 8.3% South Carolina 1 20,000 3.5% 3.2% 3.5% Indiana 2 15,039 2.7% 2.4% - Connecticut 1 10,133 1.8% 1.6% - 32 $ 563,805 100.0% 100.0% 100.0%

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Debt Balance	The table below details the Company’s debt balance at March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 December 31, 2017 Term loan- secured $ 125,000 $ 125,000 Revolving credit facility- secured 107,700 91,200 Unamortized deferred financing costs (635 ) (677 ) $ 232,065 $ 215,523
Summary of Gain Recognized On Interest Rate Derivative Designated As Cash Flow Hedges	The table below details the location in the consolidated financial statements of the gain recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2018 and 2017 (dollars in thousands): Three months ended March 31, 2018 Three months ended March 31, 2017 Amount of gain recognized in other comprehensive income $ 1,709 $ 370 Amount of loss reclassified from accumulated other comprehensive income into interest expense (78 ) - Total change in accumulated other comprehensive income $ 1,787 $ 370

Incentive Plan (Tables)

Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 and 2017: 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, 2017 313,819 $ 13.42 660,598 $ 9.52 Granted 46,788 11.14 937 11.13 Vested (24,232 ) 13.27 (8,312 ) 9.35 Forfeited - - - - Outstanding as of March 31, 2018 336,375 $ 13.11 653,223 $ 9.53 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 - - Forfeited (5,368 ) 15.00 - - Outstanding as of March 31, 2017 370,095 $ 14.24 575,775 $ 8.51
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, 2018 and 2017 (in thousands): For the three months ended March 31, 2018 2017 Restricted stock $ 492 $ 548 Restricted stock units 564 408 Stock-based compensation $ 1,056 $ 956

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of Common Stock Dividend	The following table reflects the common stock dividends paid during or related to 2018. Quarter Quarterly Dividend Date of Declaration Date of Record Date Paid/Payable 4th Quarter 2017 $ 0.21 February 7, 2018 February 19, 2018 March 5, 2018 1st Quarter 2018 $ 0.21 May 8, 2018 May 22, 2018 June 5, 2018

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 and 2017 (amounts in thousands, except per share amounts): Three Months Ended March 31, Numerator: 2018 2017 Net income $ 6,154 $ 5,475 Less: Net income attributable to noncontrolling interest (985 ) (944 ) Net income attributable to common stockholders 5,169 4,531 Less: Allocation to participating securities (71 ) (78 ) Net income available to common stockholders $ 5,098 $ 4,453 Denominator Basic weighted-average common shares 31,550 31,415 Dilutive potential common shares 60 - Diluted weighted-average common shares 31,610 31,415 Basic and diluted earnings per common share $ 0.16 $ 0.14

Organization and Nature of Bu23

Organization and Nature of Business - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)PropertyMortgage
Organization And Nature Of Business [Line Items]
Investment in real estate properties and mortgage notes receivable | $	$ 559
Number of real estate properties | Property	32
Number of mortgage notes receivable | Mortgage	6
Ownership interest	100.00%
Lakeway Hospital
Organization And Nature Of Business [Line Items]
Ownership percentage by parent	51.00%
MedEquities Realty Operating Partnership, LP
Organization And Nature Of Business [Line Items]
Ownership interest	100.00%

Accounting Policies and Relat24

Accounting Policies and Related Matters - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)Lease	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)
Accounting Policies And Related Matters [Line Items]
Increase in the beginning of period cash, cash equivalents and restricted cash	$ (6,723)	$ (1,965)
Decrease in the change in other assets	$ (602)	1,261
Number of leases | Lease	2
Ground Lease
Accounting Policies And Related Matters [Line Items]
Number of leases | Lease	1
Corporate Office Lease
Accounting Policies And Related Matters [Line Items]
Number of leases | Lease	1
Ground Lease and Corporate Office Lease | Scenario, Forecast
Accounting Policies And Related Matters [Line Items]
Operating leases, expected rent expense			$ 500
Accounting Standards Update 2016-18
Accounting Policies And Related Matters [Line Items]
Increase in the beginning of period cash, cash equivalents and restricted cash		300
Decrease in the change in other assets		$ 300

Investment Activity - Additiona

Investment Activity - Additional Information (Details)	Mar. 29, 2018USD ($)	Feb. 16, 2018USD ($)	Jan. 31, 2018USD ($)ft²Bed	Jan. 08, 2018USD ($)Bed	Aug. 01, 2017	Mar. 31, 2018USD ($)Mortgage	Dec. 31, 2017USD ($)
Investment Activity [Line Items]
Number of originated mortgage note receivable | Mortgage						3
Additional investment on origination of funded additonal in existing mortgage notes receivable						$ 21,300,000
Mortgage notes receivable, net						41,513,000	$ 18,557,000
Total mortgage loan amount						11,657,000
Gruene Pointe Holdings, LLC
Investment Activity [Line Items]
Mortgage notes receivable, net	$ 5,000,000
Term on mortgage loan	two-year
Loan interest rate	10.00%
Mortage note, maturity date	Mar. 29, 2020
Medistar Corporation | Webster, Texas
Investment Activity [Line Items]
Mortgage notes receivable, net		$ 3,000,000
Loan interest rate		12.00%			10.00%
Mortage note, maturity date		Dec. 31, 2018
Total mortgage loan amount		$ 9,700,000
Maximum
Investment Activity [Line Items]
Mortgage notes receivable, net						25,000,000
Maximum | Gruene Pointe Holdings, LLC
Investment Activity [Line Items]
Purchase price	$ 28,000,000
Haven Behavioral Healthcare
Investment Activity [Line Items]
Mortgage notes receivable, net						$ 7,900,000
Number of inpatient bed | Bed				72
Term on mortgage loan				three-year
Loan interest rate				10.00%
Sale-leaseback term				15-year
Initial master lease yield				9.30%
Haven Behavioral Healthcare | Maximum
Investment Activity [Line Items]
Mortgage notes receivable, net				$ 19,000,000
Louisville Rehab LP
Investment Activity [Line Items]
Term on mortgage loan			three-year
Loan interest rate			9.50%
Percentage of interest rate using claw-back feature			15.00%
Louisville Rehab LP | Clarksville, Indiana
Investment Activity [Line Items]
Mortgage notes receivable, net			$ 5,400,000
Number of inpatient bed | Bed			42
Area of inpatient rehabilitation facility | ft²			57,275
Louisville Rehab LP | Cobalt Medical Partners and Cobalt Rehabilitation Hospitals
Investment Activity [Line Items]
Purchase price			$ 26,000,000
Initial term of lease			20 years
Initial lease rate			9.00%

Investment Activity - Construct

Investment Activity - Construction Mortgage Notes Activity - Additional Information (Details)	3 Months Ended
	Mar. 31, 2018USD ($)Loan
Mortgage Loans On Real Estate [Line Items]
Number of construction mortgage loans | Loan	2
Construction mortgage loans with funding commitments	$ 25,000,000
Maximum
Mortgage Loans On Real Estate [Line Items]
Construction mortgage loans with funding commitments	$ 25,000,000

Investment Activity - Schedule

Investment Activity - Schedule of Construction Mortgage Loans With Funding Commitments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Mortgage Loans On Real Estate [Line Items]
Total Commitment	$ 25,000
Outstanding Balance	$ 11,657
Sequel Construction Mortgage Loan
Mortgage Loans On Real Estate [Line Items]
Origination Date	2017-10
Total Commitment	$ 6,000
Outstanding Balance	$ 3,804
Haven Construction Mortgage Loan
Mortgage Loans On Real Estate [Line Items]
Origination Date	2018-01
Total Commitment	$ 19,000
Outstanding Balance	$ 7,853

Investment Activity - Schedul28

Investment Activity - Schedule of Tenant Concentration of Revenue (Details) - Credit Concentration Risk - Sales Revenue, Net	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
BSW Health
Concentration Risk [Line Items]
Concentration risk percentage	21.90%	25.80%
Texas Ten Tenant
Concentration Risk [Line Items]
Concentration risk percentage	21.40%	24.90%
Fundamental Healthcare
Concentration Risk [Line Items]
Concentration risk percentage	15.30%	14.20%
Life Generations Healthcare
Concentration Risk [Line Items]
Concentration risk percentage	12.90%	15.10%
Vibra Healthcare
Concentration Risk [Line Items]
Concentration risk percentage	11.40%	13.60%

Investment Activity - Schedul29

Investment Activity - Schedule of Geographic Concentration of Properties (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)Property	Mar. 31, 2017
Concentration Risk [Line Items]
Number of real estate properties | Property	32
Gross Investment | $	$ 563,805
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	17
Gross Investment | $	$ 300,259
Percentage of Total Real Estate Property Investments	53.30%
Texas | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	59.10%	63.10%
California
Concentration Risk [Line Items]
Number of real estate properties | Property	7
Gross Investment | $	$ 154,726
Percentage of Total Real Estate Property Investments	27.40%
California | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	21.60%	25.10%
Nevada
Concentration Risk [Line Items]
Number of real estate properties | Property	4
Gross Investment | $	$ 63,648
Percentage of Total Real Estate Property Investments	11.30%
Nevada | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	12.10%	8.30%
South Carolina
Concentration Risk [Line Items]
Number of real estate properties | Property	1
Gross Investment | $	$ 20,000
Percentage of Total Real Estate Property Investments	3.50%
South Carolina | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	3.20%	3.50%
Indiana
Concentration Risk [Line Items]
Number of real estate properties | Property	2
Gross Investment | $	$ 15,039
Percentage of Total Real Estate Property Investments	2.70%
Indiana | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	2.40%
Connecticut
Concentration Risk [Line Items]
Number of real estate properties | Property	1
Gross Investment | $	$ 10,133
Percentage of Total Real Estate Property Investments	1.80%
Connecticut | Geographic Concentration Risk | Sales Revenue, Net
Concentration Risk [Line Items]
Percentage of Rental Income	1.60%

Debt - Summary of Debt (Detail)

Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Unamortized deferred financing costs	$ (635)	$ (677)
Debt, net	232,065	215,523
Term loan- secured
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity	125,000	125,000
Revolving credit facility- secured
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 107,700	$ 91,200

Debt - Additional Information (

Debt - Additional Information (Details)	May 10, 2018USD ($)	Feb. 10, 2017USD ($)Agreement	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity			$ 276,700,000
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%
Number of interest rate swap agreements | Agreement		4
Interest rate swap agreement effective date		Apr. 10, 2017
Estimated additional reclassification from other comprehensive income (loss) to interest expense			$ 400,000
Interest Rate Swap Agreements | OtherAssetsMember
Debt Instrument [Line Items]
Fair value of derivative financial instruments			$ 3,000,000		$ 1,200,000
Subsequent Event
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 239,700,000
Credit Agreement
Debt Instrument [Line Items]
Debt instrument, weighted average interest			3.80%	2.60%
Term Loan
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		$ 125,000,000
Deferred financing costs, gross			$ 800,000
Debt financing costs, net			600,000
Term Loan | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility outstanding amount	$ 125,000,000
Term Loan | Credit Agreement
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity			$ 125,000,000
Line of credit facility maturity date			2022-02
Secured Revolving Credit facility
Debt Instrument [Line Items]
Costs related to revolving credit facility, gross			$ 3,400,000
Costs related to revolving credit facility, net			2,500,000
Amortization expense of deferred financing costs			300,000	$ 300,000
Line of credit facility outstanding amount			107,700,000		$ 91,200,000
Secured Revolving Credit facility | LIBOR
Debt Instrument [Line Items]
Debt instrument interest rate		1.84%
Secured Revolving Credit facility | Subsequent Event
Debt Instrument [Line Items]
Debt instrument, weighted average interest	3.91%
Line of credit facility outstanding amount	$ 114,700,000
Line of credit facility additional borrowing capacity	$ 37,000,000
Secured Revolving Credit facility | Subsequent Event | LIBOR
Debt Instrument [Line Items]
Debt instrument interest rate	2.00%
Secured Revolving Credit facility | Credit Agreement
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity			$ 300,000,000
Line of credit facility maturity date			2021-02

Debt - Summary of Gain Recogniz

Debt - Summary of Gain Recognized On Interest Rate Derivative Designated As Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Debt Disclosure [Abstract]
Amount of gain recognized in other comprehensive income	$ 1,709	$ 370
Amount of loss reclassified from accumulated other comprehensive income into interest expense	(78)
Total change in accumulated other comprehensive income	$ 1,787	$ 370

Incentive Plan - Additional Inf

Incentive Plan - Additional Information (Details) $ in Millions	Dec. 31, 2015	Mar. 31, 2018USD ($)Employeeshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized cost from stock-based awards | $		$ 5.4
Weighted average recognition period		2 years
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
Shares surrendered to satisfy tax obligation		3,936
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of RSUs granted		100.00%
Awards measurement period	3 years	3 years
Expected service periods		3 years
Percentage on number of additional units granted		50.00%
Number of former employee | Employee		1
Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of RSUs granted	0.00%	0.00%
Restricted Stock Units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage on number of RSUs granted	100.00%	150.00%
2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized		3,356,723
Shares available for future issuance		1,927,194

Incentive Plan - Summary of Sto

Incentive Plan - Summary of Stock-Based Award Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restricted Stock Awards
Number of Shares
Outstanding at beginning of the period	313,819	352,793
Granted	46,788	33,780
Vested	(24,232)	(11,110)
Forfeited		(5,368)
Outstanding at end of the period	336,375	370,095
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of the period	$ 13.42	$ 14.57
Granted	11.14	11.10
Vested	13.27	15
Forfeited		15
Outstanding at end of the period	$ 13.11	$ 14.24
RSU Awards
Number of Shares
Outstanding at beginning of the period	660,598	575,775
Granted	937
Vested	(8,312)
Outstanding at end of the period	653,223	575,775
Weighted-Average Grant Date Fair Value Per Share
Outstanding at beginning of the period	$ 9.52	$ 8.51
Granted	11.13
Vested	9.35
Outstanding at end of the period	$ 9.53	$ 8.51

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, 2018	Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	$ 1,056	$ 956
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	492	548
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation	$ 564	$ 408

Commitment and Contingencies -

Commitment and Contingencies - Additional Information (Details)	1 Months Ended	3 Months Ended
	Apr. 30, 2017USD ($)	Mar. 31, 2018USD ($)Loan	May 10, 2018USD ($)	Dec. 31, 2017USD ($)
Loss Contingencies [Line Items]
Mortgage notes receivable, net		$ 41,513,000		$ 18,557,000
Number of contruction mortgage loans | Loan		2
Mountains' Edge Hospital
Loss Contingencies [Line Items]
Aggregate amount available for construction and equipping of new surgical suites	$ 11,000,000
Percentage of base rent increased on amount advanced	9.40%
Maximum
Loss Contingencies [Line Items]
Mortgage notes receivable, net		$ 25,000,000
Subsequent Event
Loss Contingencies [Line Items]
Fund available pursuant to the commitment for construction			$ 12,200,000
Subsequent Event | Mountains' Edge Hospital
Loss Contingencies [Line Items]
Fund available pursuant to the commitment for construction			$ 1,100,000

Equity - Schedule of Common Sto

Equity - Schedule of Common Stock Dividend (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Class Of Stock [Line Items]
Quarterly Dividend	$ 0.21		$ 0.21
Common Stock
Class Of Stock [Line Items]
Quarterly Dividend	$ 0.21	$ 0.21
Date of Declaration	May 8, 2018	Feb. 7, 2018
Date of Record	May 22, 2018	Feb. 19, 2018
Date Paid/Payable	Jun. 5, 2018	Mar. 5, 2018

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, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income	$ 6,154	$ 5,475
Less: Net income attributable to noncontrolling interest	(985)	(944)
Net income attributable to common stockholders	5,169	4,531
Less: Allocation to participating securities	(71)	(78)
Net income available to common stockholders	$ 5,098	$ 4,453
Basic weighted-average common shares	31,550	31,415
Dilutive potential common shares	60
Diluted weighted-average common shares	31,610	31,415
Basic and diluted earnings per common share	$ 0.16	$ 0.14

Fair Value of Financial Instr39

Fair Value of Financial Instruments - Additional information (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Mortgage notes receivable, gross	$ 41.8
Estimated Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of mortgage notes receivable	41.5
Interest Rate Swap Agreements | OtherAssetsMember
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value of derivative financial instruments	$ 3	$ 1.2