Community Healthcare Trust (CHCT) 10-Q 5 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Community Healthcare Trust Inc
Entity Central Index Key	0001631569
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Small Business	true
Entity Common Stock, Shares Outstanding		20,177,693
Entity Current Reporting Status	Yes
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Real estate properties
Land and land improvements	$ 63,015	$ 50,270
Buildings, improvements, and lease intangibles	503,110	394,527
Personal property	202	133
Total real estate properties	566,327	444,930
Less accumulated depreciation	(71,617)	(55,298)
Total real estate properties, net	494,710	389,632
Cash and cash equivalents	1,724	2,007
Restricted cash	224	385
Other assets, net	36,414	34,546
Total assets	533,072	426,570
Liabilities
Debt, net	215,460	147,766
Accounts payable and accrued liabilities	4,004	3,196
Other liabilities	12,661	3,949
Total liabilities	232,125	154,911
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value; 450,000,000 shares authorized; 20,177,693 and 18,634,502 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	202	186
Additional paid-in capital	391,247	337,180
Cumulative net income	15,341	9,178
Accumulated other comprehensive (loss) income	(6,826)	633
Cumulative dividends	(99,017)	(75,518)
Total stockholders’ equity	300,947	271,659
Total liabilities and stockholders' equity	$ 533,072	$ 426,570

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	450,000,000	450,000,000
Common Stock, shares issued (in shares)	20,177,693	18,634,502
Common Stock, shares outstanding (in shares)	20,177,693	18,634,502

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
REVENUES
Rental income	$ 15,718	$ 11,858	$ 41,977	$ 34,743
Revenues	16,259	12,537	44,016	36,368
EXPENSES
Property operating	3,327	2,627	9,395	7,497
General and administrative	2,041	1,395	5,602	4,092
Depreciation and amortization	5,774	4,925	16,319	14,471
Expenses	11,142	8,947	31,316	26,060
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND OTHER ITEMS	5,117	3,590	12,700	10,308
Interest expense	(2,483)	(1,643)	(6,788)	(4,482)
Interest and other income, net	13	52	251	462
INCOME FROM CONTINUING OPERATIONS	2,647	1,999	6,163	6,288
NET INCOME	$ 2,647	$ 1,999	$ 6,163	$ 6,288
NET INCOME PER COMMON SHARE:
Net income per common share – Basic (in dollars per share)	$ 0.12	$ 0.10	$ 0.28	$ 0.31
Net income per common share – Diluted (in dollars per share)	$ 0.12	$ 0.10	$ 0.28	$ 0.31
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC (in shares)	18,832,902	17,669,681	18,347,630	17,695,688
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED (in shares)	18,832,902	17,669,681	18,347,630	17,695,688
Other operating interest
REVENUES
Other operating interest	$ 541	$ 679	$ 2,039	$ 1,625

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 2,647	$ 1,999	$ 6,163	$ 6,288
Other comprehensive (loss) income:
(Decrease) increase in fair value of cash flow hedges	(2,060)	527	(7,305)	2,152
Reclassification for amounts recognized as interest expense	3	46	(154)	201
Total other comprehensive (loss) income	(2,057)	573	(7,459)	2,353
COMPREHENSIVE INCOME (LOSS)	$ 590	$ 2,572	$ (1,296)	$ 8,641

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid in Capital	Cumulative Net Income	Accumulated Other Comprehensive (Loss) Income	Cumulative Dividends
Beginning Balance at Dec. 31, 2017	$ 283,374	$ 181	$ 324,303	$ 4,775	$ 258	$ (46,143)
Beginning Balance (in shares) at Dec. 31, 2017		18,085,798
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)		234,000
Issuance of common stock, net of issuance costs	7,064	$ 2	7,062
Stock-based compensation (in shares)		214,004
Stock-based compensation	2,105	$ 2	2,103
Unrecognized gain (loss) on cash flow hedges	2,152
Unrecognized gain (loss) on cash flow hedges	2,153				2,153
Reclassification adj for gain (losses) included in net income (interest expense)	201				201
Net income	6,288			6,288
Dividends to common stockholders	(21,868)					(21,868)
Ending Balance (in shares) at Sep. 30, 2018		18,533,802
Ending Balance at Sep. 30, 2018	279,317	$ 185	333,468	11,063	2,612	(68,011)
Beginning Balance at Dec. 31, 2017	$ 283,374	$ 181	324,303	4,775	258	(46,143)
Beginning Balance (in shares) at Dec. 31, 2017		18,085,798
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)	334,700
Ending Balance (in shares) at Dec. 31, 2018		18,634,502
Ending Balance at Dec. 31, 2018	$ 271,659	$ 186	337,180	9,178	633	(75,518)
Beginning Balance at Jun. 30, 2018	276,358	$ 182	325,719	9,064	2,039	(60,646)
Beginning Balance (in shares) at Jun. 30, 2018		18,199,975
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)		234,000
Issuance of common stock, net of issuance costs	7,064	$ 2	7,062
Stock-based compensation (in shares)		99,827
Stock-based compensation	688	$ 1	687
Unrecognized gain (loss) on cash flow hedges	527
Unrecognized gain (loss) on cash flow hedges	527				527
Reclassification adj for gain (losses) included in net income (interest expense)	46				46
Net income	1,999			1,999
Dividends to common stockholders	(7,365)					(7,365)
Ending Balance (in shares) at Sep. 30, 2018		18,533,802
Ending Balance at Sep. 30, 2018	279,317	$ 185	333,468	11,063	2,612	(68,011)
Beginning Balance at Dec. 31, 2018	$ 271,659	$ 186	337,180	9,178	633	(75,518)
Beginning Balance (in shares) at Dec. 31, 2018		18,634,502
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)	1,321,362	1,321,362
Issuance of common stock, net of issuance costs	$ 51,332	$ 14	51,318
Stock-based compensation (in shares)		221,829
Stock-based compensation	2,751	$ 2	2,749
Unrecognized gain (loss) on cash flow hedges	(7,305)				(7,305)
Reclassification adj for gain (losses) included in net income (interest expense)	(154)				(154)
Net income	6,163			6,163
Dividends to common stockholders	(23,499)					(23,499)
Ending Balance (in shares) at Sep. 30, 2019		20,177,693
Ending Balance at Sep. 30, 2019	300,947	$ 202	391,247	15,341	(6,826)	(99,017)
Beginning Balance at Jun. 30, 2019	279,120	$ 194	361,913	12,694	(4,769)	(90,912)
Beginning Balance (in shares) at Jun. 30, 2019		19,401,244
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)		680,309
Issuance of common stock, net of issuance costs	28,340	$ 7	28,333
Stock-based compensation (in shares)		96,140
Stock-based compensation	1,002	$ 1	1,001
Unrecognized gain (loss) on cash flow hedges	(2,060)				(2,060)
Reclassification adj for gain (losses) included in net income (interest expense)	3				3
Net income	2,647			2,647
Dividends to common stockholders	(8,105)					(8,105)
Ending Balance (in shares) at Sep. 30, 2019		20,177,693
Ending Balance at Sep. 30, 2019	$ 300,947	$ 202	$ 391,247	$ 15,341	$ (6,826)	$ (99,017)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Cumulative Dividends
Dividends to common stockholders, per share (in dollars per share)	$ 0.4125	$ 0.4025	$ 1.23	$ 1.20

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
OPERATING ACTIVITIES
Net income	$ 6,163	$ 6,288
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,731	14,929
Stock-based compensation	2,751	2,105
Straight-line rent receivable	(1,353)	(1,165)
Deferred income tax expense (benefit)	9	(103)
Changes in operating assets and liabilities:
Other assets	(1,889)	(3,332)
Accounts payable and accrued liabilities	723	(373)
Other liabilities	52	(427)
Net cash provided by operating activities	23,187	17,922
INVESTING ACTIVITIES
Acquisitions of real estate	(115,624)	(26,820)
Acquisitions of notes receivable	0	(2,201)
Funding of notes receivable	0	(4,833)
Proceeds from the repayment of notes receivable	752	50
Capital expenditures on existing real estate properties	(3,461)	(4,220)
Net cash used in investing activities	(118,333)	(38,024)
FINANCING ACTIVITIES
Net repayments on revolving credit facility	(6,750)	(6,000)
Term loan borrowings	75,000	40,000
Mortgage note repayments	(77)	0
Dividends paid	(23,499)	(21,868)
Proceeds from issuance of common stock	51,640	7,147
Equity issuance costs	(308)	(83)
Debt issuance costs	(1,304)	(218)
Net cash provided by financing activities	94,702	18,978
Decrease in cash and cash equivalents and restricted cash	(444)	(1,124)
Cash and cash equivalents and restricted cash, beginning of period	2,392	2,130
Cash and cash equivalents and restricted cash, end of period	1,948	1,006
Supplemental Cash Flow Information:
Interest paid	6,380	3,823
Invoices accrued for construction, tenant improvement and other capitalized costs	270	102
Reclassification between accounts and notes receivable	45	0
Reclassification of registration statement costs incurred in prior year to equity issuance costs	321	34
(Decrease) increase in fair value of cash flow hedges	(7,305)	2,152
Fair value of property received in foreclosure	0	4,541
Notes and mortgage receivable repayments utilized to originate note receivable	$ 0	$ 18,167

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Business Overview Community Healthcare Trust Incorporated (the ‘‘Company’’, ‘‘we’’, ‘‘our’’) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in our target submarkets. As of September 30, 2019 , the Company had investments of approximately $566.3 million in 111 real estate properties, located in 32 states, totaling approximately 2.5 million square feet in the aggregate. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2019 . All material intercompany accounts and transactions have been eliminated. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates. Reclassifications Tenant reimbursements totaling $1.7 million and $4.7 million , respectively, on the Company's Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 were reclassified into rental income. Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and one subsidiary have also elected for that subsidiary to be treated as a taxable REIT subsidiary ("TRS"), which is subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company has recorded income tax expense or benefit for the TRS to the extent applicable. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP) and meet other requirements to continue to qualify as a REIT. New Accounting Pronouncements Recently Adopted Accounting Pronouncements Lease Accounting In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases; in January 2018, the FASB issued ASU 2018-01, Leases - Land Easement Practical Expedient for Transition to Topic 842; in July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases - Targeted Improvements; and in December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors. The Company adopted this group of ASUs, collectively referred to as Topic 842, on January 1, 2019. Topic 842 superseded the existing standard for lease accounting (Topic 840, Leases). The Company elected to utilize the following practical expedients provided by Topic 842: • the package of practical expedients that allows an entity not to reassess upon adoption (i) whether an expired or existing contract contains a lease, (ii) whether a lease classification related to expired or existing lease arrangements, and (iii) whether costs incurred on expired or existing leases qualify as initial direct costs, and • as a lessor, the practical expedient not to separate certain non-lease components, such as common area maintenance, from the lease component if (i) the timing and pattern of transfer are the same for the nonlease component and associated lease component, and (ii) the lease component would be classified as an operating lease if accounted for separately. Topic 842 requires lessees to record most leases on their balance sheet through a right-of-use ("ROU") model, in which a lessee records a ROU asset and a lease liability on their balance sheet. Leases with terms that are 12 months or less or leases that are clearly insignificant have not been accounted for under the ROU model. Lessees will account for leases as financing or operating leases, with the classification affecting the timing and pattern of expense recognition in the income statement. Lease expense will be recognized based on the effective interest method for leases accounted for as finance leases and on a straight-line basis over the term of the lease for leases accounted for as operating leases. The accounting by a lessor under Topic 842 is largely unchanged from that of Topic 840. Under Topic 842, lessors will continue to account for leases as a sales-type, direct-financing, or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease. Topic 842 requires accounting for a transaction as a financing in a sale leaseback when the seller-lessee is provided an option to purchase the property from the landlord at the tenant's option. The Company expects that this provision could change the accounting for these types of leases in the future. Topic 842 also includes the concept of separating lease and nonlease components. Under Topic 842, nonlease components, such as common area maintenance, would be accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. With this election, the Company combined tenant reimbursements with rental income on its Condensed Consolidated Statements of Income. Additionally, we will recognize a charge to rental income for amounts deemed uncollectible. Further, the Company has historically only capitalized direct leasing costs, such as leasing commissions. While the new standard revises the treatment of indirect leasing costs and permits the capitalization and amortization only of direct leasing costs, the Company does not expect an impact to its financial statements related to the capitalization of leasing costs. Also, the Narrow-Scope Improvements for Lessors under ASU 2018-20 allows the Company to continue to exclude from revenue costs paid by our tenants on our behalf directly to third parties, such as property taxes and insurance. Topic 842 provided two transition alternatives. The Company adopted the standard based on the prospective optional transition method, in which leases for comparative periods continue to be accounted for in accordance with Topic 840. Upon adoption, where the Company is the lessee, we recorded a ROU asset and a related operating lease liability, each totaling approximately $0.1 million , related to one ground lease which will have minimal impact on the recognition of future ground lease expense. The ROU lease asset is included in other assets and the operating lease liability is included in other liabilities on the Company's Condensed Consolidated Balance Sheets. Derivatives and Hedge Accounting In October 2018, the FASB issued an update, ASU 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes to ASC Topic 815, Derivatives and Hedging. ASU 2018-16 expands the list of U.S. benchmark interest rates permitted in the application of hedge accounting by adding the OIS rate based on SOFR as an eligible benchmark interest rate. ASU 2018-16 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. We adopted this update effective January 1, 2019. The adoption of this update did not have an impact on our Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Financial Instruments-Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new current expected credit loss ("CECL") model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. Companies will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. Companies will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This standard is effective for the Company on January 1, 2020 with early adoption permitted. In August 2018, the FASB issued a proposal that would amend the ASU to clarify that receivables arising from leases would not be within the scope of the ASU but rather would be accounted for under the leasing standard. The Company continues to monitor the FASB's activity relating to this ASU and the effects that it could have on our Consolidated Financial Statements.

Real Estate Investments

Real Estate Investments	9 Months Ended
	Sep. 30, 2019
Real Estate [Abstract]
Real Estate Investments	Real Estate Investments At September 30, 2019 , the Company had investments of approximately $566.3 million in 111 real estate properties. The following table summarizes the Company's real estate investments. (Dollars in thousands) Number of Facilities Land and Land Improvements Buildings, Improvements, and Lease Intangibles Personal Property Total Accumulated Depreciation Medical office buildings: Florida 5 $ 4,648 $ 29,384 $ — $ 34,032 $ 5,328 Ohio 6 3,665 26,578 — 30,243 6,209 Texas 3 3,164 15,591 — 18,755 4,862 Illinois 3 1,918 15,019 — 16,937 3,195 Kansas 3 2,455 15,539 — 17,994 4,480 Iowa 1 2,241 9,062 — 11,303 2,967 Other states 16 5,587 40,952 — 46,539 5,805 37 23,678 152,125 — 175,803 32,846 Physician clinics: Kansas 2 610 6,921 — 7,531 1,690 Illinois 6 2,888 9,709 — 12,597 838 Florida 5 506 10,322 — 10,828 1,101 Other states 9 2,903 21,742 — 24,645 3,984 22 6,907 48,694 — 55,601 7,613 Surgical centers and hospitals: Louisiana 1 1,683 21,353 — 23,036 1,511 Michigan 2 637 8,383 — 9,020 2,623 Illinois 2 2,355 8,222 — 10,577 1,797 Florida 1 271 7,070 — 7,341 1,043 Arizona 2 576 5,389 — 5,965 1,774 Other states 7 2,130 17,935 — 20,065 4,534 15 7,652 68,352 — 76,004 13,282 Specialty centers: Illinois 3 3,489 24,733 — 28,222 2,916 Other states 22 5,207 38,623 — 43,830 8,365 25 8,696 63,356 — 72,052 11,281 Behavioral facilities: Massachusetts 1 3,835 23,303 — 27,138 177 West Virginia 1 2,138 22,897 — 25,035 1,171 Illinois 1 1,300 18,803 — 20,103 1,568 Washington 1 2,725 25,064 — 27,789 120 Other states 5 2,538 18,880 — 21,418 1,097 9 12,536 108,947 — 121,483 4,133 Inpatient rehabilitation facilities: Texas 2 3,023 44,530 — 47,553 548 2 3,023 44,530 — 47,553 548 Long-term acute care hospitals: Indiana 1 523 14,405 — 14,928 1,566 1 523 14,405 — 14,928 1,566 Corporate property — — 2,701 202 2,903 348 Total real estate investments 111 $ 63,015 $ 503,110 $ 202 $ 566,327 $ 71,617

Real Estate Leases

Real Estate Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Real Estate Leases	Real Estate Leases The Company’s properties are generally leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2034 . The Company’s leases generally require the lessee to pay minimum rent, with fixed rent renewal terms or increases based on a Consumer Price Index and and may also include additional rent, which may include taxes (including property taxes), insurance, maintenance and other operating costs associated with the leased property. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. Some leases also allow the lessee to renew or extend their lease term or in some cases terminate their lease, based on conditions provided in the lease. Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of September 30, 2019 , are as follows (in thousands): 2019 (three months ending December 31) $ 12,889 2020 49,652 2021 46,663 2022 43,440 2023 39,016 2024 and thereafter 247,654 $ 439,314 Straight-line rental income Rental income is recognized as earned over the life of the lease agreement on a straight-line basis. Straight-line rent included in rental income was approximately $0.6 million and $0.4 million , respectively, for the three months ended September 30, 2019 and 2018 and was approximately $1.4 million and $1.2 million , respectively, for the nine months ended September 30, 2019 and 2018 . Deferred revenue Rent received but not yet earned is deferred until such time it is earned. Deferred revenue, included in other liabilities, was approximately $ 2.0 million and $1.6 million , respectively, at September 30, 2019 and December 31, 2018 .

Real Estate Acquisitions

Real Estate Acquisitions	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Real Estate Acquisitions	Real Estate Acquisitions During the third quarter of 2019, the Company acquired three real estate properties totaling approximately 130,000 square feet for an aggregate purchase price of approximately $52.6 million and cash consideration of approximately $52.2 million . Upon acquisition, the properties were 100% leased in the aggregate with lease expirations through 2034 . Amounts reflected in revenues and net income for the nine months ended September 30, 2019 for these properties were approximately $1.0 million and $0.7 million , respectively. Transaction costs totaling approximately $0.4 million related to these asset acquisitions were capitalized in the period and included in real estate assets. During the second quarter of 2019, the Company acquired three real estate properties totaling approximately 110,000 square feet for an aggregate purchase price of approximately $31.9 million and cash consideration of approximately $30.7 million . Upon acquisition, the properties were approximately 97.1% leased in the aggregate with lease expirations through 2034 . Amounts reflected in revenues and net income for the nine months ended September 30, 2019 for these properties were approximately $1.4 million and $1.0 million , respectively. Due to the original structuring of one of the acquisitions in April 2019, the Company recorded interest income for the second quarter of 2019 totaling approximately $0.4 million that was included in other operating interest on the Condensed Consolidated Statements of Income, rather than rental income. Transaction costs totaling approximately $0.2 million related to these asset acquisitions were capitalized in the period and included in real estate assets. During the first quarter of 2019, the Company acquired two real estate properties totaling approximately 83,000 square feet for an aggregate purchase price and cash consideration of approximately $32.7 million . Upon acquisition, the properties were 100% leased in the aggregate with lease expirations in 2029 . Amounts reflected in revenues and net income for the nine months ended September 30, 2019 for these properties were approximately $2.0 million and $1.5 million , respectively. Transaction costs totaling approximately $0.1 million related to these asset acquisitions were capitalized in the period and included in real estate assets. The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the nine months ended September 30, 2019. Relative Fair Value Estimated Useful Life (in thousands) (In years) Land and land improvements $ 12,497 4.7-18.4 Building and building improvements 103,253 20-40 Intangibles: At-market lease intangibles 2,186 3.8-10.8 Below-market lease intangibles (44 ) 8.3 Total intangibles 2,142 Accounts receivable and other assets assumed 15 Accounts payable, accrued liabilities and other liabilities assumed (2,198 ) Prorated rent, interest and operating expense reimbursement amounts collected (85 ) Total cash consideration $ 115,624

Debt, net

Debt, net	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt, net	Debt, net The table below details the Company's debt as of September 30, 2019 and December 31, 2018 . Balance as of (Dollars in thousands) September 30, 2019 December 31, 2018 Maturity Dates Revolving Credit Facility $ 36,250 $ 43,000 3/23 A-1 Term Loan, net 49,815 49,759 3/22 A-2 Term Loan, net 49,761 49,722 3/24 A-3 Term Loan, net 74,411 — 3/26 Mortgage Note Payable 5,223 5,285 5/24 $ 215,460 $ 147,766 The Company's second amended and restated credit facility (the "Credit Facility") is by and among Community Healthcare OP, LP, the Company, the lenders from time to time party thereto, and SunTrust Bank, as Administrative Agent. The Company’s material subsidiaries are guarantors of the obligations under the Credit Facility. The Company entered into a third amendment to its Credit Facility (the "Third Amendment") on March 29, 2019 , which added a $75.0 million term loan (the "A-3 Term Loan"), which matures on March 29, 2026 , extended the maturity of the revolving credit facility (the "Revolving Credit Facility") to March 29, 2023 , improved pricing on the Credit Facility, and adjusted certain financial covenants. The Company paid approximately $1.3 million in fees and expenses related to the Third Amendment, of which $0.7 million was related to the Revolving Credit Facility and was recorded as deferred financing costs, included in Other Assets, and $0.6 million was related to the A-3 Term Loan and was recorded as deferred financing costs, included in Debt, net, on the Company's Condensed Consolidated Balance Sheets. The Credit Facility, as amended, provides for a $150.0 million Revolving Credit Facility and $175.0 million in term loans (the "Term Loans"). The Credit Facility, through the accordion feature, allows borrowings up to a total of $525.0 million including the ability to add and fund additional term loans. The Revolving Credit Facility matures on March 29, 2023 and includes one 12 -month option to extend the maturity date of the Revolving Credit Facility, subject to the satisfaction of certain conditions. The Term Loans include a five -year term loan facility in the aggregate principal amount of $50.0 million (the "A-1 Term Loan"), which matures on March 29, 2022 , a seven -year term loan facility in the aggregate principal amount of $50.0 million (the "A-2 Term Loan"), which matures on March 29, 2024 and the new seven -year, $75.0 million A-3 Term Loan, which matures on March 29, 2026 . Amounts outstanding under the Revolving Credit Facility, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.25% to 1.90% or (ii) a base rate plus 0.25% to 0.90% in each case, depending upon the Company’s leverage ratio. In addition, the Company is obligated to pay an annual fee equal to 0.25% of the amount of the unused portion of the Revolving Credit Facility if amounts borrowed are greater than 33.3% of the borrowing capacity under the Revolving Credit Facility and 0.35% of the unused portion of the Revolving Credit Facility if amounts borrowed are less than or equal to 33.3% of the borrowing capacity under the Revolving Credit Facility. The Company had $36.3 million outstanding under the Revolving Credit Facility with a borrowing capacity remaining of approximately $113.8 million at September 30, 2019 . Amounts outstanding under the Term Loans, as amended, bear annual interest at a floating rate that is based, at the Company’s option, on either: (i) LIBOR plus 1.25% to 2.30% or (ii) a base rate plus 0.25% to 1.30% , in each case, depending upon the Company’s leverage ratio. In addition, the Company is obligated to pay an annual fee equal to 0.35% of the amount of the unused portion of the Term Loans. The Company has entered into interest rate swaps to fix the interest rates on the Term Loans. See Note 6 for more details on the interest rate swaps. At September 30, 2019 , the Company had drawn the full $175.0 million under the Term Loans which had a fixed weighted average interest rate under the swaps of approximately 4.569% . The Company’s ability to borrow under the Credit Facility is subject to its ongoing compliance with a number of customary affirmative and negative covenants, including limitations with respect to liens, indebtedness, distributions, mergers, consolidations, investments, restricted payments and asset sales, as well as financial maintenance covenants. The Company was in compliance with its financial covenants under its Credit Facility as of September 30, 2019 .

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of September 30, 2019 , the Company had seven outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk for notional amounts totaling $175.0 million . The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 . Asset Derivatives Fair Value at Liability Derivatives Fair Value at September 30, 2019 December 31, 2018 Balance Sheet Classification September 30, 2019 December 31, 2018 Balance Sheet Classification Interest rate swaps $ — $ 902 Other assets $ 6,826 $ 98 Other Liabilities The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive (loss) income ("AOCI") and are subsequently reclassified to interest expense in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s Term Loans. During the next twelve months, the Company estimates that an additional $1.1 million will be reclassified from other comprehensive (loss) income ("OCI") as an increase to interest expense. The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended (Dollars in thousands) 2019 2018 2019 2018 Amount of unrealized (loss) gain recognized in OCI on derivative $ (2,060 ) $ 527 $ (7,305 ) $ 2,152 Amount of (gain) loss reclassified from accumulated OCI into interest expense $ 3 $ 46 $ (154 ) $ 201 Total Interest Expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 2,483 $ 1,643 $ 6,788 $ 4,482 Credit-risk-related Contingent Feature s As of September 30, 2019 , the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $7.2 million . As of September 30, 2019 , the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of approximately $7.2 million at September 30, 2019 .

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock The following table provides a reconciliation of the beginning and ending common stock balances for the nine months ended September 30, 2019 and for the year ended December 31, 2018 : Nine Months Ended Year Ended December 31, 2018 Balance, beginning of period 18,634,502 18,085,798 Issuance of common stock 1,321,362 334,700 Restricted stock-based awards 221,829 214,004 Balance, end of period 20,177,693 18,634,502 ATM Program On August 7, 2018, the Company entered into an at-the-market offering program ("ATM Program") with Sandler O’Neill & Partners, L.P., Evercore Group L.L.C., SunTrust Robinson Humphrey, Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, Fifth Third Securities, Inc. and Janney Montgomery Scott LLC, as sales agents (collectively, the “Agents”), under which the Company may issue and sell shares of its common stock, par value $0.01 per share (the “Common Stock”), having an aggregate gross sales price of up to $100.0 million (the “Shares”) from time to time through or to one or more of the Agents, as may be determined by the Company in its sole discretion, subject to the terms and conditions of the Agreement and applicable law. The Company's activity under the ATM Program for the three and nine months ended September 30, 2019 is detailed in the table below. As of September 30, 2019 , the Company had approximately $36.9 million remaining that may be issued under the ATM Program. Three Months Ended Nine Months Ended Shares issued 680,309 1,321,362 Proceeds received (in millions) $ 28.5 $ 51.6 Average gross sales price per share ($) $ 42.70 $ 39.88

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Net Income Per Common Share	Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per common share. Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 2,647 $ 1,999 $ 6,163 $ 6,288 Participating securities' share in earnings (373 ) (287 ) (1,024 ) (769 ) Net income, less participating securities' share in earnings $ 2,274 $ 1,712 $ 5,139 $ 5,519 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 19,697,574 18,330,340 19,166,309 18,228,006 Unvested restricted shares (864,672 ) (660,659 ) (818,679 ) (532,318 ) Weighted average Common Shares outstanding–Basic 18,832,902 17,669,681 18,347,630 17,695,688 Dilutive potential common shares — — — — Weighted average Common Shares outstanding –Diluted 18,832,902 17,669,681 18,347,630 17,695,688 Basic Net Income per Common Share $ 0.12 $ 0.10 $ 0.28 $ 0.31 Diluted Net Income per Common Share $ 0.12 $ 0.10 $ 0.28 $ 0.31

Incentive Plan

Incentive Plan	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Incentive Plan	Incentive Plan Under the Company's 2014 Incentive Plan, as amended, awards may be made in the form of restricted stock, cash or a combination of both. Compensation expense recognized from the amortization of the value of the Company's officer, employee and director shares over the applicable vesting periods during the three months ended September 30, 2019 and 2018 was approximately $1.0 million and $0.7 million , respectively, and during the nine months ended September 30, 2019 and 2018 was approximately $2.8 million and $2.1 million , respectively. Included in general and administrative expense for the nine months ended September 30, 2018 was approximately $0.2 million related to fully amortized shares previously granted to a board member who did not stand for re-election to the Company's board. A summary of the activity under the 2014 Incentive Plan for the three and nine months ended September 30, 2019 and 2018 is included in the table below. Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 Stock-based awards, beginning of period 813,752 609,660 709,487 512,115 Stock in lieu of compensation 14,862 17,420 72,391 69,767 Stock awards 81,278 82,407 149,438 144,237 Total stock granted 96,140 99,827 221,829 214,004 Vested shares — — (21,424 ) (16,632 ) Stock-based awards, end of period 909,892 709,487 909,892 709,487

Other Assets

Other Assets	9 Months Ended
	Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Items included in Other assets, net on the Company's Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 are detailed in the table below. Balance as of (Dollars in thousands) September 30, 2019 December 31, 2018 Notes receivable $ 23,402 $ 24,110 Accounts and interest receivables 3,573 2,158 Straight-line rent receivables 4,567 3,254 Prepaid assets 688 487 Deferred financing costs, net 746 318 Leasing commissions, net 900 790 Deferred tax asset 2,016 2,024 Fair value of interest rate swaps — 902 Above-market intangible assets, net 150 168 Right-of-use leased asset 140 — Other 232 335 $ 36,414 $ 34,546 The Company's $23.4 million in notes receivable at September 30, 2019 include mainly the following notes. Interest related to these notes is included in Other Operating Interest on the Company's Condensed Consolidated Statements of Income. • On April 25, 2018, the Company provided a $23.0 million loan to a newly formed company, secured by all assets and ownership interests in seven long-term acute care hospitals and one inpatient rehabilitation hospital. The loan, which matures on May 1, 2031, currently bears interest at 9% per annum, with principal payments beginning in May 2021. • On December 31, 2018, the Company entered into notes with a tenant totaling $0.9 million . The notes bear interest at 9% per annum and mature on December 31, 2019. The Company identified the borrowers of these notes as variable interest entities ("VIEs"), but management determined that the Company was not the primary beneficiary of the VIEs because we lack either directly or through related parties any material impact in the activities that impact the borrowers' economic performance. We are not obligated to provide support beyond our stated commitment to the borrowers, and accordingly our maximum exposure to loss as a result of this relationship is limited to the amount of our outstanding notes receivable. The VIEs that we have identified at September 30, 2019 are summarized in the table below. Classification Carrying Amount (in millions) Maximum Exposure to Loss (in millions) Notes receivable $ 0.4 $ 0.4 Note receivable $ 23.0 $ 23.0

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practical to estimate the fair value. Cash and cash equivalents and restricted cash - The carrying amount approximates the fair value. Notes receivable - The fair value is estimated using cash flow analyses, based on an assumed market rate of interest or at a rate consistent with the rates on notes carried by the Company and are classified as level 2 in the hierarchy. Borrowings under our Credit Facility - The carrying amount approximates the fair value because the borrowings are based on variable market interest rates. Derivative financial instruments - The fair value is estimated using discounted cash flow techniques. These techniques incorporate primarily 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. Mortgage note payable - The fair value is estimated using cash flow analyses which are based on an assumed market rate of interest or at a rate consistent with the rates on mortgage notes assumed by the Company and are classified as level 2 in the hierarchy. The table below details the fair values and carrying values for our notes receivable, interest rate swaps, and mortgage note payable at September 30, 2019 and December 31, 2018 , using level 2 inputs. September 30, 2019 December 31, 2018 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable $ 23,402 $ 23,494 $ 24,110 $ 23,936 Interest rate swap asset $ — $ — $ 902 $ 902 Interest rate swap liability $ 6,826 $ 6,826 $ 269 $ 269 Mortgage note payable $ 5,314 $ 5,323 $ 5,391 $ 5,307

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Dividend Declared On October 31, 2019 , the Company’s Board of Directors declared a quarterly common stock dividend in the amount of $0.4150 per share. The dividend is payable on November 29, 2019 to stockholders of record on November 15, 2019 . Subsequent Acquisitions Subsequent to September 30, 2019, the Company acquired seven real estate properties, including one that was previously under construction, totaling approximately 114,000 square feet for a purchase price of approximately $34.8 million and cash consideration of approximately $34.4 million . Upon acquisition, the properties were 100% leased in the aggregate with lease expiration through 2034 . The Company funded the acquisitions with cash from operations, net proceeds from the ATM Program, and proceeds from the Company's Revolving Credit Facility.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. This interim financial information should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. This interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2019 . All material intercompany accounts and transactions have been eliminated.
Use of Estimates in the Condensed Consolidated Financial Statements	Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates.
Reclassifications	Reclassifications Tenant reimbursements totaling $1.7 million and $4.7 million , respectively, on the Company's Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018 were reclassified into rental income.
Income Taxes	Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT"), as defined under the Internal Revenue Code of 1986, as amended (the "Code"). The Company and one subsidiary have also elected for that subsidiary to be treated as a taxable REIT subsidiary ("TRS"), which is subject to federal and state income taxes. No provision has been made for federal income taxes for the REIT; however, the Company has recorded income tax expense or benefit for the TRS to the extent applicable. The Company intends at all times to qualify as a REIT under the Code. The Company must distribute at least 90% per annum of its REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP) and meet other requirements to continue to qualify as a REIT.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements Lease Accounting In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases; in January 2018, the FASB issued ASU 2018-01, Leases - Land Easement Practical Expedient for Transition to Topic 842; in July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases - Targeted Improvements; and in December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors. The Company adopted this group of ASUs, collectively referred to as Topic 842, on January 1, 2019. Topic 842 superseded the existing standard for lease accounting (Topic 840, Leases). The Company elected to utilize the following practical expedients provided by Topic 842: • the package of practical expedients that allows an entity not to reassess upon adoption (i) whether an expired or existing contract contains a lease, (ii) whether a lease classification related to expired or existing lease arrangements, and (iii) whether costs incurred on expired or existing leases qualify as initial direct costs, and • as a lessor, the practical expedient not to separate certain non-lease components, such as common area maintenance, from the lease component if (i) the timing and pattern of transfer are the same for the nonlease component and associated lease component, and (ii) the lease component would be classified as an operating lease if accounted for separately. Topic 842 requires lessees to record most leases on their balance sheet through a right-of-use ("ROU") model, in which a lessee records a ROU asset and a lease liability on their balance sheet. Leases with terms that are 12 months or less or leases that are clearly insignificant have not been accounted for under the ROU model. Lessees will account for leases as financing or operating leases, with the classification affecting the timing and pattern of expense recognition in the income statement. Lease expense will be recognized based on the effective interest method for leases accounted for as finance leases and on a straight-line basis over the term of the lease for leases accounted for as operating leases. The accounting by a lessor under Topic 842 is largely unchanged from that of Topic 840. Under Topic 842, lessors will continue to account for leases as a sales-type, direct-financing, or operating. A lease will be treated as a sale if it is considered to transfer control of the underlying asset to the lessee. A lease will be classified as direct-financing if risks and rewards are conveyed without the transfer of control. Otherwise, the lease is treated as an operating lease. Topic 842 requires accounting for a transaction as a financing in a sale leaseback when the seller-lessee is provided an option to purchase the property from the landlord at the tenant's option. The Company expects that this provision could change the accounting for these types of leases in the future. Topic 842 also includes the concept of separating lease and nonlease components. Under Topic 842, nonlease components, such as common area maintenance, would be accounted for under Topic 606 and separated from the lease payments. However, the Company elected the lessor practical expedient allowing the Company to not separate these components when certain conditions are met. With this election, the Company combined tenant reimbursements with rental income on its Condensed Consolidated Statements of Income. Additionally, we will recognize a charge to rental income for amounts deemed uncollectible. Further, the Company has historically only capitalized direct leasing costs, such as leasing commissions. While the new standard revises the treatment of indirect leasing costs and permits the capitalization and amortization only of direct leasing costs, the Company does not expect an impact to its financial statements related to the capitalization of leasing costs. Also, the Narrow-Scope Improvements for Lessors under ASU 2018-20 allows the Company to continue to exclude from revenue costs paid by our tenants on our behalf directly to third parties, such as property taxes and insurance. Topic 842 provided two transition alternatives. The Company adopted the standard based on the prospective optional transition method, in which leases for comparative periods continue to be accounted for in accordance with Topic 840. Upon adoption, where the Company is the lessee, we recorded a ROU asset and a related operating lease liability, each totaling approximately $0.1 million , related to one ground lease which will have minimal impact on the recognition of future ground lease expense. The ROU lease asset is included in other assets and the operating lease liability is included in other liabilities on the Company's Condensed Consolidated Balance Sheets. Derivatives and Hedge Accounting In October 2018, the FASB issued an update, ASU 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes to ASC Topic 815, Derivatives and Hedging. ASU 2018-16 expands the list of U.S. benchmark interest rates permitted in the application of hedge accounting by adding the OIS rate based on SOFR as an eligible benchmark interest rate. ASU 2018-16 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. We adopted this update effective January 1, 2019. The adoption of this update did not have an impact on our Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Financial Instruments-Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, companies will be required to use a new current expected credit loss ("CECL") model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, companies will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. Companies will have to disclose significantly more information, including information they use to track credit quality by year of origination for most financing receivables. Companies will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This standard is effective for the Company on January 1, 2020 with early adoption permitted. In August 2018, the FASB issued a proposal that would amend the ASU to clarify that receivables arising from leases would not be within the scope of the ASU but rather would be accounted for under the leasing standard. The Company continues to monitor the FASB's activity relating to this ASU and the effects that it could have on our Consolidated Financial Statements.

Real Estate Investments (Tables

Real Estate Investments (Tables)	9 Months Ended
	Sep. 30, 2019
Real Estate [Abstract]
Schedule of real estate property investments	At September 30, 2019 , the Company had investments of approximately $566.3 million in 111 real estate properties. The following table summarizes the Company's real estate investments. (Dollars in thousands) Number of Facilities Land and Land Improvements Buildings, Improvements, and Lease Intangibles Personal Property Total Accumulated Depreciation Medical office buildings: Florida 5 $ 4,648 $ 29,384 $ — $ 34,032 $ 5,328 Ohio 6 3,665 26,578 — 30,243 6,209 Texas 3 3,164 15,591 — 18,755 4,862 Illinois 3 1,918 15,019 — 16,937 3,195 Kansas 3 2,455 15,539 — 17,994 4,480 Iowa 1 2,241 9,062 — 11,303 2,967 Other states 16 5,587 40,952 — 46,539 5,805 37 23,678 152,125 — 175,803 32,846 Physician clinics: Kansas 2 610 6,921 — 7,531 1,690 Illinois 6 2,888 9,709 — 12,597 838 Florida 5 506 10,322 — 10,828 1,101 Other states 9 2,903 21,742 — 24,645 3,984 22 6,907 48,694 — 55,601 7,613 Surgical centers and hospitals: Louisiana 1 1,683 21,353 — 23,036 1,511 Michigan 2 637 8,383 — 9,020 2,623 Illinois 2 2,355 8,222 — 10,577 1,797 Florida 1 271 7,070 — 7,341 1,043 Arizona 2 576 5,389 — 5,965 1,774 Other states 7 2,130 17,935 — 20,065 4,534 15 7,652 68,352 — 76,004 13,282 Specialty centers: Illinois 3 3,489 24,733 — 28,222 2,916 Other states 22 5,207 38,623 — 43,830 8,365 25 8,696 63,356 — 72,052 11,281 Behavioral facilities: Massachusetts 1 3,835 23,303 — 27,138 177 West Virginia 1 2,138 22,897 — 25,035 1,171 Illinois 1 1,300 18,803 — 20,103 1,568 Washington 1 2,725 25,064 — 27,789 120 Other states 5 2,538 18,880 — 21,418 1,097 9 12,536 108,947 — 121,483 4,133 Inpatient rehabilitation facilities: Texas 2 3,023 44,530 — 47,553 548 2 3,023 44,530 — 47,553 548 Long-term acute care hospitals: Indiana 1 523 14,405 — 14,928 1,566 1 523 14,405 — 14,928 1,566 Corporate property — — 2,701 202 2,903 348 Total real estate investments 111 $ 63,015 $ 503,110 $ 202 $ 566,327 $ 71,617

Real Estate Leases (Tables)

Real Estate Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of future minimum lease payments for operating leases	Future minimum lease payments under the non-cancelable operating leases due the Company for the years ending December 31, as of September 30, 2019 , are as follows (in thousands): 2019 (three months ending December 31) $ 12,889 2020 49,652 2021 46,663 2022 43,440 2023 39,016 2024 and thereafter 247,654 $ 439,314

Real Estate Acquisitions (Table

Real Estate Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Schedule of assets acquired and liabilities assumed	The following table summarizes the relative fair values of the assets acquired and liabilities assumed in the property acquisitions for the nine months ended September 30, 2019. Relative Fair Value Estimated Useful Life (in thousands) (In years) Land and land improvements $ 12,497 4.7-18.4 Building and building improvements 103,253 20-40 Intangibles: At-market lease intangibles 2,186 3.8-10.8 Below-market lease intangibles (44 ) 8.3 Total intangibles 2,142 Accounts receivable and other assets assumed 15 Accounts payable, accrued liabilities and other liabilities assumed (2,198 ) Prorated rent, interest and operating expense reimbursement amounts collected (85 ) Total cash consideration $ 115,624

Debt, net (Tables)

Debt, net (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of debt	The table below details the Company's debt as of September 30, 2019 and December 31, 2018 . Balance as of (Dollars in thousands) September 30, 2019 December 31, 2018 Maturity Dates Revolving Credit Facility $ 36,250 $ 43,000 3/23 A-1 Term Loan, net 49,815 49,759 3/22 A-2 Term Loan, net 49,761 49,722 3/24 A-3 Term Loan, net 74,411 — 3/26 Mortgage Note Payable 5,223 5,285 5/24 $ 215,460 $ 147,766

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of fair value of derivative instruments on balance sheet	The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 . Asset Derivatives Fair Value at Liability Derivatives Fair Value at September 30, 2019 December 31, 2018 Balance Sheet Classification September 30, 2019 December 31, 2018 Balance Sheet Classification Interest rate swaps $ — $ 902 Other assets $ 6,826 $ 98 Other Liabilities
Schedule of derivative gain (loss)	The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended (Dollars in thousands) 2019 2018 2019 2018 Amount of unrealized (loss) gain recognized in OCI on derivative $ (2,060 ) $ 527 $ (7,305 ) $ 2,152 Amount of (gain) loss reclassified from accumulated OCI into interest expense $ 3 $ 46 $ (154 ) $ 201 Total Interest Expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded $ 2,483 $ 1,643 $ 6,788 $ 4,482

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Schedule of reconciliation of common stock	The following table provides a reconciliation of the beginning and ending common stock balances for the nine months ended September 30, 2019 and for the year ended December 31, 2018 : Nine Months Ended Year Ended December 31, 2018 Balance, beginning of period 18,634,502 18,085,798 Issuance of common stock 1,321,362 334,700 Restricted stock-based awards 221,829 214,004 Balance, end of period 20,177,693 18,634,502
Schedule of ATM Program	As of September 30, 2019 , the Company had approximately $36.9 million remaining that may be issued under the ATM Program. Three Months Ended Nine Months Ended Shares issued 680,309 1,321,362 Proceeds received (in millions) $ 28.5 $ 51.6 Average gross sales price per share ($) $ 42.70 $ 39.88

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of earnings per share	The following table sets forth the computation of basic and diluted net income per common share. Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 2,647 $ 1,999 $ 6,163 $ 6,288 Participating securities' share in earnings (373 ) (287 ) (1,024 ) (769 ) Net income, less participating securities' share in earnings $ 2,274 $ 1,712 $ 5,139 $ 5,519 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 19,697,574 18,330,340 19,166,309 18,228,006 Unvested restricted shares (864,672 ) (660,659 ) (818,679 ) (532,318 ) Weighted average Common Shares outstanding–Basic 18,832,902 17,669,681 18,347,630 17,695,688 Dilutive potential common shares — — — — Weighted average Common Shares outstanding –Diluted 18,832,902 17,669,681 18,347,630 17,695,688 Basic Net Income per Common Share $ 0.12 $ 0.10 $ 0.28 $ 0.31 Diluted Net Income per Common Share $ 0.12 $ 0.10 $ 0.28 $ 0.31

Incentive Plan (Tables)

Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Summary of nonvested restricted stock activity	A summary of the activity under the 2014 Incentive Plan for the three and nine months ended September 30, 2019 and 2018 is included in the table below. Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 Stock-based awards, beginning of period 813,752 609,660 709,487 512,115 Stock in lieu of compensation 14,862 17,420 72,391 69,767 Stock awards 81,278 82,407 149,438 144,237 Total stock granted 96,140 99,827 221,829 214,004 Vested shares — — (21,424 ) (16,632 ) Stock-based awards, end of period 909,892 709,487 909,892 709,487

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	Items included in Other assets, net on the Company's Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 are detailed in the table below. Balance as of (Dollars in thousands) September 30, 2019 December 31, 2018 Notes receivable $ 23,402 $ 24,110 Accounts and interest receivables 3,573 2,158 Straight-line rent receivables 4,567 3,254 Prepaid assets 688 487 Deferred financing costs, net 746 318 Leasing commissions, net 900 790 Deferred tax asset 2,016 2,024 Fair value of interest rate swaps — 902 Above-market intangible assets, net 150 168 Right-of-use leased asset 140 — Other 232 335 $ 36,414 $ 34,546
Schedule of VIEs	The VIEs that we have identified at September 30, 2019 are summarized in the table below. Classification Carrying Amount (in millions) Maximum Exposure to Loss (in millions) Notes receivable $ 0.4 $ 0.4 Note receivable $ 23.0 $ 23.0

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	The table below details the fair values and carrying values for our notes receivable, interest rate swaps, and mortgage note payable at September 30, 2019 and December 31, 2018 , using level 2 inputs. September 30, 2019 December 31, 2018 (Dollars in thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable $ 23,402 $ 23,494 $ 24,110 $ 23,936 Interest rate swap asset $ — $ — $ 902 $ 902 Interest rate swap liability $ 6,826 $ 6,826 $ 269 $ 269 Mortgage note payable $ 5,314 $ 5,323 $ 5,391 $ 5,307

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Business Overview/Segment Reporting (Details) $ in Thousands, ft² in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)ft²statereal_estate_property	Jan. 01, 2019USD ($)lease	Dec. 31, 2018USD ($)
Disaggregation of Revenue [Line Items]
Value of real estate property investments and mortgages			$ 566,300
Number of real estate properties | real_estate_property			111
Number of states in which real estate investments are in | state			32
Area of real estate property (in square feet) | ft²			2.5
Operating lease ROU assets			$ 140		$ 0
Tenant reimbursements
Disaggregation of Revenue [Line Items]
Other operating interest	$ 1,700	$ 4,700
ASU 2016-02
Disaggregation of Revenue [Line Items]
Operating lease ROU assets				$ 100
Operating lease liabilities				$ 100
Number of ground leases | lease				1

Real Estate Investments - Addit

Real Estate Investments - Additional Information (Details) $ in Millions	Sep. 30, 2019USD ($)real_estate_property
Real Estate [Abstract]
Value of real estate property investments and mortgages | $	$ 566.3
Number of real estate properties | real_estate_property	111

Real Estate Investments - Sched

Real Estate Investments - Schedule of Real Estate Property Investments (Details) $ in Thousands	Sep. 30, 2019USD ($)real_estate_property	Dec. 31, 2018USD ($)
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	111
Land and Land Improvements	$ 63,015	$ 50,270
Buildings, Improvements, and Lease Intangibles	503,110	394,527
Personal Property	202	133
Total real estate properties	566,327	444,930
Accumulated Depreciation	$ 71,617	$ 55,298
Medical office
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	37
Land and Land Improvements	$ 23,678
Buildings, Improvements, and Lease Intangibles	152,125
Personal Property	0
Total real estate properties	175,803
Accumulated Depreciation	$ 32,846
Medical office | Florida
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	5
Land and Land Improvements	$ 4,648
Buildings, Improvements, and Lease Intangibles	29,384
Personal Property	0
Total real estate properties	34,032
Accumulated Depreciation	$ 5,328
Medical office | Illinois
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	3
Land and Land Improvements	$ 1,918
Buildings, Improvements, and Lease Intangibles	15,019
Personal Property	0
Total real estate properties	16,937
Accumulated Depreciation	$ 3,195
Medical office | Iowa
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 2,241
Buildings, Improvements, and Lease Intangibles	9,062
Personal Property	0
Total real estate properties	11,303
Accumulated Depreciation	$ 2,967
Medical office | Kansas
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	3
Land and Land Improvements	$ 2,455
Buildings, Improvements, and Lease Intangibles	15,539
Personal Property	0
Total real estate properties	17,994
Accumulated Depreciation	$ 4,480
Medical office | Ohio
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	6
Land and Land Improvements	$ 3,665
Buildings, Improvements, and Lease Intangibles	26,578
Personal Property	0
Total real estate properties	30,243
Accumulated Depreciation	$ 6,209
Medical office | Other States
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	16
Land and Land Improvements	$ 5,587
Buildings, Improvements, and Lease Intangibles	40,952
Personal Property	0
Total real estate properties	46,539
Accumulated Depreciation	$ 5,805
Medical office | Texas
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	3
Land and Land Improvements	$ 3,164
Buildings, Improvements, and Lease Intangibles	15,591
Personal Property	0
Total real estate properties	18,755
Accumulated Depreciation	$ 4,862
Physician clinics
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	22
Land and Land Improvements	$ 6,907
Buildings, Improvements, and Lease Intangibles	48,694
Personal Property	0
Total real estate properties	55,601
Accumulated Depreciation	$ 7,613
Physician clinics | Florida
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	5
Land and Land Improvements	$ 506
Buildings, Improvements, and Lease Intangibles	10,322
Personal Property	0
Total real estate properties	10,828
Accumulated Depreciation	$ 1,101
Physician clinics | Illinois
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	6
Land and Land Improvements	$ 2,888
Buildings, Improvements, and Lease Intangibles	9,709
Personal Property	0
Total real estate properties	12,597
Accumulated Depreciation	$ 838
Physician clinics | Kansas
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	2
Land and Land Improvements	$ 610
Buildings, Improvements, and Lease Intangibles	6,921
Personal Property	0
Total real estate properties	7,531
Accumulated Depreciation	$ 1,690
Physician clinics | Other States
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	9
Land and Land Improvements	$ 2,903
Buildings, Improvements, and Lease Intangibles	21,742
Personal Property	0
Total real estate properties	24,645
Accumulated Depreciation	$ 3,984
Surgical Centers and Hospitals
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	15
Land and Land Improvements	$ 7,652
Buildings, Improvements, and Lease Intangibles	68,352
Personal Property	0
Total real estate properties	76,004
Accumulated Depreciation	$ 13,282
Surgical Centers and Hospitals | Arizona
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	2
Land and Land Improvements	$ 576
Buildings, Improvements, and Lease Intangibles	5,389
Personal Property	0
Total real estate properties	5,965
Accumulated Depreciation	$ 1,774
Surgical Centers and Hospitals | Florida
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 271
Buildings, Improvements, and Lease Intangibles	7,070
Personal Property	0
Total real estate properties	7,341
Accumulated Depreciation	$ 1,043
Surgical Centers and Hospitals | Illinois
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	2
Land and Land Improvements	$ 2,355
Buildings, Improvements, and Lease Intangibles	8,222
Personal Property	0
Total real estate properties	10,577
Accumulated Depreciation	$ 1,797
Surgical Centers and Hospitals | Louisiana
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 1,683
Buildings, Improvements, and Lease Intangibles	21,353
Personal Property	0
Total real estate properties	23,036
Accumulated Depreciation	$ 1,511
Surgical Centers and Hospitals | Michigan
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	2
Land and Land Improvements	$ 637
Buildings, Improvements, and Lease Intangibles	8,383
Personal Property	0
Total real estate properties	9,020
Accumulated Depreciation	$ 2,623
Surgical Centers and Hospitals | Other States
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	7
Land and Land Improvements	$ 2,130
Buildings, Improvements, and Lease Intangibles	17,935
Personal Property	0
Total real estate properties	20,065
Accumulated Depreciation	$ 4,534
Specialty Centers
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	25
Land and Land Improvements	$ 8,696
Buildings, Improvements, and Lease Intangibles	63,356
Personal Property	0
Total real estate properties	72,052
Accumulated Depreciation	$ 11,281
Specialty Centers | Illinois
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	3
Land and Land Improvements	$ 3,489
Buildings, Improvements, and Lease Intangibles	24,733
Personal Property	0
Total real estate properties	28,222
Accumulated Depreciation	$ 2,916
Specialty Centers | Other States
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	22
Land and Land Improvements	$ 5,207
Buildings, Improvements, and Lease Intangibles	38,623
Personal Property	0
Total real estate properties	43,830
Accumulated Depreciation	$ 8,365
Behavioral facilities
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	9
Land and Land Improvements	$ 12,536
Buildings, Improvements, and Lease Intangibles	108,947
Personal Property	0
Total real estate properties	121,483
Accumulated Depreciation	$ 4,133
Behavioral facilities | Illinois
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 1,300
Buildings, Improvements, and Lease Intangibles	18,803
Personal Property	0
Total real estate properties	20,103
Accumulated Depreciation	$ 1,568
Behavioral facilities | Massachusetts
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 3,835
Buildings, Improvements, and Lease Intangibles	23,303
Personal Property	0
Total real estate properties	27,138
Accumulated Depreciation	$ 177
Behavioral facilities | Other States
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	5
Land and Land Improvements	$ 2,538
Buildings, Improvements, and Lease Intangibles	18,880
Personal Property	0
Total real estate properties	21,418
Accumulated Depreciation	$ 1,097
Behavioral facilities | Washington
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 2,725
Buildings, Improvements, and Lease Intangibles	25,064
Personal Property	0
Total real estate properties	27,789
Accumulated Depreciation	$ 120
Behavioral facilities | West Virginia
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 2,138
Buildings, Improvements, and Lease Intangibles	22,897
Personal Property	0
Total real estate properties	25,035
Accumulated Depreciation	$ 1,171
Inpatient Rehabilitation Facilities
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	2
Land and Land Improvements	$ 3,023
Buildings, Improvements, and Lease Intangibles	44,530
Personal Property	0
Total real estate properties	47,553
Accumulated Depreciation	$ 548
Inpatient Rehabilitation Facilities | Texas
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	2
Land and Land Improvements	$ 3,023
Buildings, Improvements, and Lease Intangibles	44,530
Personal Property	0
Total real estate properties	47,553
Accumulated Depreciation	$ 548
Long-Term Acute Care Hospitals
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 523
Buildings, Improvements, and Lease Intangibles	14,405
Personal Property	0
Total real estate properties	14,928
Accumulated Depreciation	$ 1,566
Long-Term Acute Care Hospitals | Indiana
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	1
Land and Land Improvements	$ 523
Buildings, Improvements, and Lease Intangibles	14,405
Personal Property	0
Total real estate properties	14,928
Accumulated Depreciation	$ 1,566
Corporate property
Real Estate Properties [Line Items]
Number of Facilities | real_estate_property	0
Land and Land Improvements	$ 0
Buildings, Improvements, and Lease Intangibles	2,701
Personal Property	202
Total real estate properties	2,903
Accumulated Depreciation	$ 348

Real Estate Leases (Details)

Real Estate Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Real Estate [Line Items]
2019 (three months ending December 31)	$ 12,889		$ 12,889
2020	49,652		49,652
2021	46,663		46,663
2022	43,440		43,440
2023	39,016		39,016
2024 and thereafter	247,654		247,654
Total	439,314		439,314
Straight Line rent	600	$ 400	1,353	$ 1,165
Other Liabilities
Real Estate [Line Items]
Deferred revenue	$ 2,000		$ 2,000		$ 1,600

Real Estate Acquisitions - Narr

Real Estate Acquisitions - Narrative (Details) ft² in Thousands, $ in Thousands	2 Months Ended	3 Months Ended				9 Months Ended
	Jun. 30, 2019USD ($)ft²	Sep. 30, 2019USD ($)ft²real_estate_property	Jun. 30, 2019USD ($)ft²real_estate_property	Mar. 31, 2019USD ($)ft²real_estate_property	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)ft²	Sep. 30, 2018USD ($)
Business Acquisition [Line Items]
Area of real estate property (in square feet) | ft²		2,500				2,500
Interest income		$ 13			$ 52	$ 251	$ 462
Acquisition Of Three Properties During 3rd Quarter 2019
Business Acquisition [Line Items]
Number of properties acquired | real_estate_property		3
Area of real estate property (in square feet) | ft²		130				130
Consideration transferred		$ 52,600
Total cash consideration		$ 52,200
Percentage of properties that were leased at acquisition		100.00%
Revenue from properties acquired						$ 1,000
Net income from properties acquired						700
Transaction costs		$ 400				400
Acquisition Of Three Properties During 2nd Quarter 2019
Business Acquisition [Line Items]
Number of properties acquired | real_estate_property			3
Area of real estate property (in square feet) | ft²	110		110
Consideration transferred			$ 31,900
Total cash consideration			$ 30,700
Percentage of properties that were leased at acquisition			97.10%
Revenue from properties acquired						1,400
Net income from properties acquired						1,000
Interest income	$ 400
Transaction costs		200				200
Acquisition Of Two Properties During 1st Quarter 2019
Business Acquisition [Line Items]
Number of properties acquired | real_estate_property				2
Area of real estate property (in square feet) | ft²				83
Consideration transferred				$ 32,700
Percentage of properties that were leased at acquisition				100.00%
Revenue from properties acquired						2,000
Net income from properties acquired						1,500
Transaction costs		$ 100				$ 100

Real Estate Acquisitions - Asse

Real Estate Acquisitions - Assets Acquired and Liabilities Assumed (Details) - Series of Individually Immaterial Business Acquisitions $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Business Acquisition [Line Items]
Land and land improvements	$ 12,497
Building and building improvements	103,253
Below-market lease intangibles	$ (44)
Below market lease useful life (in years)	8 years 3 months 18 days
Total intangibles	$ 2,142
Accounts receivable and other assets assumed	15
Accounts payable, accrued liabilities and other liabilities assumed	(2,198)
Prorated rent, interest and operating expense reimbursement amounts collected	(85)
Total cash consideration	115,624
At-market lease intangibles
Business Acquisition [Line Items]
At-market lease intangibles	$ 2,186
Minimum | At-market lease intangibles
Business Acquisition [Line Items]
Intangibles useful life (in years)	3 years 9 months 18 days
Minimum | Land and Land Improvements
Business Acquisition [Line Items]
Useful life (in years)	4 years 8 months 12 days
Minimum | Building and Building Improvements
Business Acquisition [Line Items]
Useful life (in years)	20 years
Maximum | At-market lease intangibles
Business Acquisition [Line Items]
Intangibles useful life (in years)	10 years 9 months 18 days
Maximum | Land and Land Improvements
Business Acquisition [Line Items]
Useful life (in years)	18 years 4 months 24 days
Maximum | Building and Building Improvements
Business Acquisition [Line Items]
Useful life (in years)	40 years

Debt, net - Schedule of Debt (D

Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt, net	$ 215,460	$ 147,766
Term Loan | Third Amended And Restated Credit Facility
Debt Instrument [Line Items]
Debt, net	175,000
Mortgage Note Payable
Debt Instrument [Line Items]
Debt, net	5,223	5,285
Revolving Credit Facility | Line of Credit | Third Amended And Restated Credit Facility
Debt Instrument [Line Items]
Debt, net	36,250	43,000
A-1 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility
Debt Instrument [Line Items]
Debt, net	49,815	49,759
A-2 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility
Debt Instrument [Line Items]
Debt, net	49,761	49,722
A-3 Term Loan, net | Term Loan | Third Amended And Restated Credit Facility
Debt Instrument [Line Items]
Debt, net	$ 74,411	$ 0

Debt, net - Narrative (Details)

Debt, net - Narrative (Details)	Mar. 29, 2019USD ($)option	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Line of Credit Facility [Line Items]
Debt issuance costs		$ 1,304,000	$ 218,000
Amount outstanding		215,460,000		$ 147,766,000
Third Amended And Restated Credit Facility
Line of Credit Facility [Line Items]
Debt issuance costs	$ 1,300,000
Third Amended And Restated Credit Facility | Term Loan
Line of Credit Facility [Line Items]
Face amount	$ 175,000,000
Unused borrowing commitment fee percentage	0.35%
Amount outstanding		$ 175,000,000
Weighted average interest rate percentage		4.569%
Third Amended And Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | Term Loan
Line of Credit Facility [Line Items]
Variable rate percentage	1.25%
Third Amended And Restated Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | Term Loan
Line of Credit Facility [Line Items]
Variable rate percentage	2.30%
Third Amended And Restated Credit Facility | Base Rate | Minimum | Term Loan
Line of Credit Facility [Line Items]
Variable rate percentage	0.25%
Third Amended And Restated Credit Facility | Base Rate | Maximum | Term Loan
Line of Credit Facility [Line Items]
Variable rate percentage	1.30%
Third Amended And Restated Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt issuance costs	$ 700,000
Third Amended And Restated Credit Facility | Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 150,000,000
Number of options to extend | option	1
Length of extension	12 months
Amount outstanding		$ 36,250,000		43,000,000
Remaining borrowing capacity	$ 113,800,000
Third Amended And Restated Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit
Line of Credit Facility [Line Items]
Variable rate percentage	1.25%
Third Amended And Restated Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit
Line of Credit Facility [Line Items]
Variable rate percentage	1.90%
Third Amended And Restated Credit Facility | Revolving Credit Facility | Base Rate | Minimum | Line of Credit
Line of Credit Facility [Line Items]
Variable rate percentage	0.25%
Third Amended And Restated Credit Facility | Revolving Credit Facility | Base Rate | Maximum | Line of Credit
Line of Credit Facility [Line Items]
Variable rate percentage	0.90%
Third Amended And Restated Credit Facility | Credit Facility, Accordion Feature
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 525,000,000
Third Amended And Restated Credit Facility | A-1 Term Loan, net | Term Loan
Line of Credit Facility [Line Items]
Face amount	$ 50,000,000
Debt term	5 years
Amount outstanding		49,815,000		49,759,000
Third Amended And Restated Credit Facility | A-2 Term Loan, net | Term Loan
Line of Credit Facility [Line Items]
Face amount	$ 50,000,000
Debt term	7 years
Amount outstanding		49,761,000		49,722,000
Third Amended And Restated Credit Facility | A-3 Term Loan, net
Line of Credit Facility [Line Items]
Debt issuance costs	$ 600,000
Third Amended And Restated Credit Facility | A-3 Term Loan, net | Term Loan
Line of Credit Facility [Line Items]
Face amount	$ 75,000,000
Debt term	7 years
Amount outstanding		$ 74,411,000		$ 0
Third Amended And Restated Credit Facility | Revolving Credit Facility, Unused Borrowing Capacity Rate 1 | Line of Credit
Line of Credit Facility [Line Items]
Unused borrowing commitment fee percentage	0.25%
Percentage of borrowing capacity outstanding	33.30%
Third Amended And Restated Credit Facility | Revolving Credit Facility, Unused Borrowing Capacity Rate 2 | Line of Credit
Line of Credit Facility [Line Items]
Unused borrowing commitment fee percentage	0.35%
Percentage of borrowing capacity outstanding	33.30%

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)derivative_instrument
Derivative [Line Items]
Cash flow hedges reclassified to interest expense	$ 1.1
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Number outstanding interest rate derivatives | derivative_instrument	7
Notional amount	$ 175
Termination value	$ 7.2

Derivative Financial Instrume_4

Derivative Financial Instruments - Fair Value Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative asset	$ 0	$ 902
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liability	7,200
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | Other Assets
Derivatives, Fair Value [Line Items]
Derivative asset	0	902
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	$ 6,826	$ 98

Derivative Financial Instrume_5

Derivative Financial Instruments - Cash Flow Hedging (Details) - Interest Rate Contract - Cash Flow Hedging - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Amount of unrealized (loss) gain recognized in OCI on derivative	$ (2,060)	$ 527	$ (7,305)	$ 2,152
Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (gain) loss reclassified from accumulated OCI into interest expense	3	46	(154)	201
Total Interest Expense presented in the Condensed Consolidated Statements of Income in which the effects of the cash flow hedges are recorded	$ 2,483	$ 1,643	$ 6,788	$ 4,482

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of Common Stock (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of period (in shares)	18,634,502	18,085,798
Issuance of common stock (in shares)	1,321,362	334,700
Restricted stock-based awards (in shares)	221,829	214,004
Balance, end of period (in shares)	20,177,693	18,634,502

Stockholders' Equity - Equity O

Stockholders' Equity - Equity Offering (Details) - USD ($)	Aug. 07, 2018	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Common Stock, par value (in dollars per share)		$ 0.01	$ 0.01	$ 0.01
At The Market Offering Program | Common Stock
Subsidiary, Sale of Stock [Line Items]
Common Stock, par value (in dollars per share)	$ 0.01
Value of shares authorized	$ 100,000,000
Remaining availability under ATM program		$ 36,900,000	$ 36,900,000
Shares issued (in shares)		680,309	1,321,362
Proceeds received		$ 28,500,000	$ 51,600,000
Average gross sales price per share (in dollars per share)		$ 42.70	$ 39.88

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income	$ 2,647	$ 1,999	$ 6,163	$ 6,288
Participating securities' share in earnings	(373)	(287)	(1,024)	(769)
Net income, less participating securities' share in earnings	$ 2,274	$ 1,712	$ 5,139	$ 5,519
Weighted average Common Shares outstanding
Weighted average Common Shares outstanding (in shares)	19,697,574	18,330,340	19,166,309	18,228,006
Unvested restricted shares (in shares)	(864,672)	(660,659)	(818,679)	(532,318)
Weighted average Common Shares outstanding–Basic (in shares)	18,832,902	17,669,681	18,347,630	17,695,688
Dilutive potential common share (in shares)	0	0	0	0
Weighted average Common Shares outstanding –Diluted (in shares)	18,832,902	17,669,681	18,347,630	17,695,688
Basic Net Income per Common Share (in dollars per share)	$ 0.12	$ 0.10	$ 0.28	$ 0.31
Diluted Net Income per Common Share (in dollars per share)	$ 0.12	$ 0.10	$ 0.28	$ 0.31

Incentive Plan - Narrative (Det

Incentive Plan - Narrative (Details) - 2014 Incentive Plan - Restricted Common Stock - USD ($) $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 1	$ 0.7	$ 2.8	$ 2.1
Board Member Not Up For Re-Election
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense					$ 0.2

Incentive Plan - Restricted Sto

Incentive Plan - Restricted Stock Activity (Details) - 2014 Incentive Plan - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Common Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Stock-based awards, beginning of period (in shares)	813,752	609,660	709,487	512,115
Granted (in shares)	96,140	99,827	221,829	214,004
Vested shares (in shares)	0	0	(21,424)	(16,632)
Stock-based awards, end of period (in shares)	909,892	709,487	909,892	709,487
Restricted Common Stock, Stock in Lieu of Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	14,862	17,420	72,391	69,767
Restricted Common Stock, Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	81,278	82,407	149,438	144,237

Other Assets - Other Assets (De

Other Assets - Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Notes receivable	$ 23,402	$ 24,110
Accounts and interest receivables	3,573	2,158
Straight-line rent receivables	4,567	3,254
Prepaid assets	688	487
Deferred financing costs, net	746	318
Leasing commissions, net	900	790
Deferred tax asset	2,016	2,024
Fair value of interest rate swaps	0	902
Above-market intangible assets, net	150	168
Right-of-use leased asset	140	0
Other	232	335
Other assets, net	$ 36,414	$ 34,546

Other Assets - Narrative (Detai

Other Assets - Narrative (Details) $ in Thousands	Apr. 25, 2018USD ($)hospital	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 24,110	$ 23,402
Promissory Notes, Secured By Facilities Owned By Borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 23,000
Note receivable interest rate	9.00%
Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 900
Note receivable interest rate		9.00%
Long-Term Acute Care Hospitals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of properties used to secure notes by borrower | hospital	7
Inpatient Rehabilitation Facilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of properties used to secure notes by borrower | hospital	1

Other Assets - VIEs (Details)

Other Assets - VIEs (Details) - Notes Receivable $ in Millions	Sep. 30, 2019USD ($)
Variable Interest Entity One
Variable Interest Entity [Line Items]
Carrying Amount	$ 0.4
Maximum Exposure to Loss	0.4
Variable Interest Entity Two
Variable Interest Entity [Line Items]
Carrying Amount	23
Maximum Exposure to Loss	$ 23

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable	$ 23,402	$ 24,110
Interest rate swap asset	0	902
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable	23,402	24,110
Mortgage note payable	5,314	5,391
Carrying Value | Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	0	902
Interest rate swap liability	6,826	269
Fair Value | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes receivable	23,494	23,936
Mortgage note payable	5,323	5,307
Fair Value | Interest Rate Swap | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	0	902
Interest rate swap liability	$ 6,826	$ 269

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, ft² in Thousands, $ in Millions	Oct. 31, 2019$ / shares	Nov. 05, 2019USD ($)ft²real_estate_property	Sep. 30, 2019ft²
Subsequent Event [Line Items]
Area of real estate property (in square feet) | ft²			2,500
Subsequent Event
Subsequent Event [Line Items]
Dividend declared (in dollars per share) | $ / shares	$ 0.415
Number of properties acquired | real_estate_property		7
Area of real estate property (in square feet) | ft²		114
Consideration transferred | $		$ 34.8
Total cash consideration | $		$ 34.4
Percentage of properties that were leased at acquisition		100.00%