Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UHT | ||
Entity Registrant Name | UNIVERSAL HEALTH REALTY INCOME TRUST | ||
Entity Central Index Key | 798783 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 13,301,298 | ||
Entity Public Float | $555,012,765 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Investments: | ||
Buildings and improvements | $451,005 | $368,295 |
Accumulated depreciation | -106,480 | -97,921 |
Real Estate Investment Property, Net, Total | 344,525 | 270,374 |
Land | 35,584 | 27,374 |
Net Real Estate Investments | 380,109 | 297,748 |
Investments in and advances to limited liability companies ("LLCs"), net | 8,605 | 39,201 |
Other Assets: | ||
Cash and cash equivalents | 3,861 | 3,337 |
Base and bonus rent receivable from UHS | 2,086 | 2,053 |
Rent receivable-other | 4,219 | 3,310 |
Intangible assets (net of accumulated amortization of $19.7 million and $13.7 million at December 31, 2014 and December 31, 2013, respectively) | 23,123 | 20,782 |
Deferred charges, goodwill and other assets, net | 6,863 | 6,714 |
Total Assets | 428,866 | 373,145 |
Liabilities: | ||
Line of credit borrowings | 89,750 | 93,700 |
Mortgage and other notes payable, non-recourse to us (including net debt premium of $523,000 and $834,000 at December 31, 2014 and December 31, 2013, respectively) | 123,405 | 106,287 |
Accrued interest | 545 | 491 |
Accrued expenses and other liabilities | 8,522 | 5,156 |
Tenant reserves, escrows, deposits and prepaid rents | 2,063 | 1,881 |
Total Liabilities | 224,285 | 207,515 |
Equity: | ||
Preferred shares of beneficial interest, $.01 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Common shares, $.01 par value; 95,000,000 shares authorized; issued and outstanding: 2014 - 13,301,204 2013 -12,858,643 | 133 | 128 |
Capital in excess of par value | 240,835 | 220,691 |
Cumulative net income | 531,595 | 480,044 |
Cumulative dividends | -567,894 | -535,176 |
Accumulated other comprehensive loss | -88 | -57 |
Total Equity | 204,581 | 165,630 |
Total Liabilities and Equity | $428,866 | $373,145 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Intangible assets, accumulated amortization | $19,700,000 | $13,700,000 |
Mortgage and other notes payable, non-recourse to us, debt premium | $523,000 | $834,000 |
Preferred shares of beneficial interest, par value | $0.01 | $0.01 |
Preferred shares of beneficial interest, shares authorized | 5,000,000 | 5,000,000 |
Preferred shares of beneficial interest, issued | ||
Preferred shares of beneficial interest, outstanding | ||
Common shares, par value | $0.01 | $0.01 |
Common shares, shares authorized | 95,000,000 | 95,000,000 |
Common shares, issued | 13,301,204 | 12,858,643 |
Common shares, outstanding | 13,301,204 | 12,858,643 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues | ||||||
Base rental-UHS facilities | $15,601 | $14,773 | $15,438 | |||
Base rental-Non-related parties | 31,386 | 27,955 | 27,213 | |||
Bonus rental-UHS facilities | 4,607 | 4,260 | 4,142 | |||
Tenant reimbursements and other-Non-related parties | 7,490 | 6,812 | 6,674 | |||
Tenant reimbursements and other-UHS facilities | 702 | 480 | 483 | |||
Revenues, Total | 59,786 | 54,280 | 53,950 | |||
Expenses: | ||||||
Depreciation and amortization | 20,885 | 18,753 | 20,216 | |||
Advisory fees to UHS | 2,545 | 2,369 | 2,119 | |||
Other operating expenses | 16,882 | 14,409 | 14,575 | |||
Transaction costs | 427 | 203 | 680 | |||
Costs and Expenses, Total | 40,739 | 35,734 | 37,590 | |||
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense and gains | 19,047 | 18,546 | 16,360 | |||
Equity in income of unconsolidated LLCs | 2,428 | [1],[2] | 2,095 | [1],[3] | 2,365 | [1],[3],[4] |
Gains on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 25,409 | [5] | 0 | 0 | ||
Gain on divestiture of real property | 13,043 | [5] | 0 | 0 | ||
Gains on divestitures of properties owned by unconsolidated LLCs | 0 | 0 | 8,520 | [3],[4] | ||
Interest expense, net | -8,376 | -7,472 | -7,768 | |||
Net income | $51,551 | [5] | $13,169 | [6] | $19,477 | |
Basic earnings per share | $3.99 | [5] | $1.04 | [6] | $1.54 | |
Diluted earnings per share | $3.99 | [5] | $1.04 | [6] | $1.54 | |
Weighted average number of shares outstanding-Basic | 12,927 | 12,689 | 12,661 | |||
Weighted average number of share equivalents | 7 | 12 | 8 | |||
Weighted average number of shares and equivalents outstanding-Diluted | 12,934 | 12,701 | 12,669 | |||
[1] | Our share of net income during 2014, 2013 and 2012, includes interest income earned by us on various advances made to LLCs of approximately $834,000, $1.9 million and $1.5 million, respectively. | |||||
[2] | As mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. Prior to August 1, 2014, the financial results of these entities were accounted for under the equity method on an unconsolidated basis. The year ended December 31, 2014, include the financial results of the six mentioned LLCs for seven months ended July 31, 2014. | |||||
[3] | As mentioned above, we began to account for Sparks Medical Properties on a consolidated basis as of January 1, 2014. Prior to January 1, 2014, the financial results of this entity were accounted for under the equity method on an unconsolidated basis. These amounts include the financial results for Sparks Medical Properties for the years ended December 31, 2013 and 2012. In addition, we purchased the minority ownership interests in six LLCs effective August 1, 2014 (as mentioned in (b.) above) and began to account for the LLCs a consolidated basis as of that date. These amounts include the financial results for these six LLCs for the years ended December 31, 2013 and 2012. As also mentioned above, we began to account for Palmdale Medical Properties on a consolidated basis as of January 1, 2014. Prior thereto, as a result of a master lease commitment with a wholly-owned subsidiary of UHS which expired effective as of July 1, 2013, the financial results of Palmdale Medical Properties was accounted for on a consolidated basis through the six-month period ended June 30, 2013 and then on an unconsolidated basis for the six-month period of July 1, 2013 through December 31, 2013. Therefore the financial results of this entity are reflected in the table above for the six-month period of July 1, 2013 through December 31, 2013. | |||||
[4] | As mentioned above, during the first quarter of 2012 and the fourth quarter of 2012, two LLCs in which we previously owned various noncontrolling, majority ownership interests (Canyon Healthcare Properties and 575 Hardy Investors), completed divestitures of medical office buildings and related real property. Our share of the financial results of the divested entities were previously accounted for on an unconsolidated basis under the equity method. | |||||
[5] | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | |||||
[6] | We began reflecting the operating results for Palmdale Medical Plaza on an unconsolidated basis pursuant to the equity method as of July 1, 2013. Prior to July 1, 2013, the financial results of this entity were recorded on a consolidated basis. The revenues for the first and second quarters of 2013, as reflected above, include the revenue for Palmdale Medical Plaza. There was no material impact to our net income as a result of the deconsolidation of this property. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net income | $51,551 | [1] | $13,169 | [2] | $19,477 |
Other comprehensive loss: | |||||
Unrealized losses on interest rate caps | -115 | -57 | 0 | ||
Amortization of interest rate cap fees | 84 | 0 | 0 | ||
Total other comprehensive loss: | -31 | -57 | 0 | ||
Total comprehensive income | $51,520 | $13,112 | $19,477 | ||
[1] | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | ||||
[2] | We began reflecting the operating results for Palmdale Medical Plaza on an unconsolidated basis pursuant to the equity method as of July 1, 2013. Prior to July 1, 2013, the financial results of this entity were recorded on a consolidated basis. The revenues for the first and second quarters of 2013, as reflected above, include the revenue for Palmdale Medical Plaza. There was no material impact to our net income as a result of the deconsolidation of this property. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common stock | Capital in excess of par value | Cumulative net income | Accumulated other comprehensive loss | UHT Shareholders' Equity | Non-controlling Interests | Cumulative dividends |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $188,945 | $127 | $213,566 | $447,398 | $188,861 | $84 | ($472,230) | |
Balance, Shares at Dec. 31, 2011 | 12,667,000 | |||||||
Shares of Beneficial Interest: | ||||||||
Issued (in shares) | 22,000 | |||||||
Issued | 305 | 305 | 305 | |||||
Partial settlement of dividend equivalent rights | -106 | -106 | -106 | |||||
Restricted stock-based compensation expense | 329 | 329 | 329 | |||||
Dividends ($2.52/share) in 2014, ($2.495/share) in 2013 and ($2.46/share) in 2012 | -31,195 | -31,195 | -31,195 | |||||
Comprehensive income: | ||||||||
Net income | 19,467 | 19,477 | 19,477 | -10 | ||||
Balance at Dec. 31, 2012 | 177,745 | 127 | 214,094 | 466,875 | 177,671 | 74 | -503,425 | |
Balance, Shares at Dec. 31, 2012 | 12,689,000 | |||||||
Shares of Beneficial Interest: | ||||||||
Issued (in shares) | 170,000 | |||||||
Issued | 6,324 | 1 | 6,323 | 6,324 | ||||
Partial settlement of dividend equivalent rights | -101 | -101 | -101 | |||||
Restricted stock-based compensation expense | 375 | 375 | 375 | |||||
Dividends ($2.52/share) in 2014, ($2.495/share) in 2013 and ($2.46/share) in 2012 | -31,751 | -31,751 | -31,751 | |||||
Deconsolidation of LLC | -74 | 0 | -74 | |||||
Comprehensive income: | ||||||||
Net income | 13,169 | 13,169 | 13,169 | |||||
Unrealized loss on interest rate cap | -57 | -57 | -57 | |||||
Subtotal - comprehensive income | 13,112 | 13,169 | -57 | 13,112 | 0 | |||
Balance at Dec. 31, 2013 | 165,630 | 128 | 220,691 | 480,044 | -57 | 165,630 | 0 | -535,176 |
Balance, Shares at Dec. 31, 2013 | 12,859,000 | |||||||
Shares of Beneficial Interest: | ||||||||
Issued (in shares) | 443,000 | |||||||
Issued | 19,844 | 5 | 19,839 | 19,844 | ||||
Partial settlement of dividend equivalent rights | -94 | -94 | -94 | |||||
Restricted stock-based compensation expense | 399 | 399 | 399 | |||||
Dividends ($2.52/share) in 2014, ($2.495/share) in 2013 and ($2.46/share) in 2012 | -32,718 | -32,718 | -32,718 | |||||
Comprehensive income: | ||||||||
Net income | 51,551 | 51,551 | 51,551 | |||||
Unrealized loss on interest rate cap | -31 | -31 | -31 | |||||
Subtotal - comprehensive income | 51,520 | 51,551 | -31 | 51,520 | 0 | |||
Balance at Dec. 31, 2014 | $204,581 | $133 | $240,835 | $531,595 | ($88) | $204,581 | $0 | ($567,894) |
Balance, Shares at Dec. 31, 2014 | 13,302,000 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividend, per share | $2.52 | $2.50 | $2.46 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Cash flows from operating activities: | |||||
Net income | $51,551 | [1] | $13,169 | [2] | $19,477 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 20,975 | 18,843 | 20,216 | ||
Amortization on debt premium | -312 | -433 | -657 | ||
Restricted/stock-based compensation expense | 399 | 375 | 329 | ||
Gain on divestiture of real property | -13,043 | [1] | 0 | 0 | |
Gains on purchase of minority interests in majority-owned LLCs | -25,409 | [1] | 0 | 0 | |
Gains on divestiture of properties owned by unconsolidated LLCs | 0 | 0 | -8,520 | ||
Changes in assets and liabilities: | |||||
Rent receivable | -555 | -746 | -862 | ||
Accrued expenses and other liabilities | -509 | 523 | 278 | ||
Tenant reserves, escrows, deposits and prepaid rents | -303 | 16 | 207 | ||
Accrued interest | -62 | -22 | 66 | ||
Other, net | 64 | -431 | 249 | ||
Net cash provided by operating activities | 32,796 | 31,294 | 30,783 | ||
Cash flows from investing activities: | |||||
Investments in LLCs | -1,337 | -3,013 | -2,973 | ||
Repayments of advances made to LLCs | 0 | 114 | 8,551 | ||
Advances made to LLCs | 0 | -4,580 | -8,000 | ||
Cash distributions in excess of income from LLCs | 1,029 | 2,346 | 3,169 | ||
Cash distribution of refinancing proceeds from LLCs | 2,280 | 0 | 0 | ||
Additions to real estate investments, net | -2,866 | -3,415 | -3,985 | ||
Deposits on real estate assets | -100 | -150 | 100 | ||
Net cash paid for acquisition of medical office buildings | -15,600 | -4,675 | -16,891 | ||
Payment of assumed liabilities on acquired properties | 0 | 0 | -711 | ||
Cash paid to acquire minority interests in majority-owned LLCs | -4,744 | 0 | 0 | ||
Cash proceeds received from divestiture of property owned by unconsolidated LLCs, net | 0 | 0 | 12,175 | ||
Cash proceeds received from divestiture of real property | 17,300 | 0 | 0 | ||
Net cash used in investing activities | -4,038 | -13,373 | -8,565 | ||
Cash flows from financing activities: | |||||
Net borrowings on line of credit | 0 | 11,950 | 4,600 | ||
Net repayments on line of credit | -3,950 | 0 | 0 | ||
Proceeds from mortgages and other notes payable | 0 | 11,150 | 14,000 | ||
Repayments of mortgages and other notes payable | -12,327 | -14,401 | -18,084 | ||
Financing costs paid on mortgage and other notes payable | 0 | -95 | -384 | ||
Dividends paid | -32,718 | -31,751 | -31,195 | ||
Partial settlement of dividends equivalent rights | -94 | -101 | -106 | ||
Issuance of shares of beneficial interest, net | 19,274 | 5,757 | 350 | ||
Net cash used in financing activities | -29,815 | -17,491 | -30,819 | ||
(Decrease)/increase in cash and cash equivalents | -1,057 | 430 | -8,601 | ||
Increase/(decrease) in cash due to recording of LLCs on a consolidated/unconsolidated basis | 1,581 | -141 | 0 | ||
Cash and cash equivalents, beginning of period | 3,337 | 3,048 | 11,649 | ||
Cash and cash equivalents, end of period | 3,861 | 3,337 | 3,048 | ||
Supplemental disclosures of cash flow information: | |||||
Interest paid | 8,268 | 7,517 | 7,994 | ||
Supplemental disclosures of non-cash transactions: | |||||
Debt assumed on acquisition of real estate | 0 | 0 | 22,441 | ||
Cash paid for purchase of minority interests in majority-owned LLCs | 4,744 | 0 | 0 | ||
Consolidation of LLC | |||||
Cash flows from investing activities: | |||||
Cash paid to acquire minority interests in majority-owned LLCs | -4,744 | 0 | 0 | ||
Supplemental disclosures of non-cash transactions: | |||||
Net real estate investments | -84,064 | 0 | 0 | ||
Cash and cash equivalents | -1,581 | 0 | 0 | ||
Intangible assets | 6,490 | 0 | 0 | ||
Rent receivable - other | 388 | 0 | 0 | ||
Deferred charges, goodwill and other assets, net | -100 | 0 | 0 | ||
Investment in LLC | 28,616 | 0 | 0 | ||
Mortgage and other notes payable, non-recourse to us | -29,758 | 0 | 0 | ||
Accrued interest | -116 | 0 | 0 | ||
Accrued expenses and other liabilities | -1,245 | 0 | 0 | ||
Tenant reserves, escrows, deposits and prepaid rents | -485 | 0 | 0 | ||
Note payable to previous third party member | -2,250 | 0 | 0 | ||
Gains on purchases of minority interests in majority-owned LLCs | -25,409 | 0 | 0 | ||
Cash paid for purchase of minority interests in majority-owned LLCs | 4,744 | 0 | 0 | ||
Deconsolidation of Limited Liability Companies | |||||
Supplemental disclosures of non-cash transactions: | |||||
Net real estate investments | 0 | 11,597 | 0 | ||
Cash and cash equivalents | 0 | 141 | 0 | ||
Rent receivable - other | 0 | -207 | 0 | ||
Deferred charges, goodwill and other assets, net | 0 | 135 | 0 | ||
Investment in LLC | 0 | 5,443 | 0 | ||
Mortgage and other notes payable, non-recourse to us | 0 | 6,215 | 0 | ||
Other liabilities | 0 | -368 | 0 | ||
Third-party equity interest | $0 | ($54) | $0 | ||
[1] | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | ||||
[2] | We began reflecting the operating results for Palmdale Medical Plaza on an unconsolidated basis pursuant to the equity method as of July 1, 2013. Prior to July 1, 2013, the financial results of this entity were recorded on a consolidated basis. The revenues for the first and second quarters of 2013, as reflected above, include the revenue for Palmdale Medical Plaza. There was no material impact to our net income as a result of the deconsolidation of this property. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary of Significant Accounting Policies | -1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Nature of Operations | ||||
Universal Health Realty Income Trust and subsidiaries (the “Trust”) is organized as a Maryland real estate investment trust. We invest in healthcare and human service related facilities currently including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings. As of February 28, 2015, we have sixty-one real estate investments or commitments located in eighteen states consisting of: | ||||
• | six hospital facilities including three acute care, one rehabilitation and two sub-acute; | |||
• | three free-standing emergency departments; | |||
• | forty-eight medical office buildings, including five owned by unconsolidated limited liability companies (“LLCs”), and; | |||
• | four preschool and childcare centers. | |||
Our future results of operations could be unfavorably impacted by deterioration in general economic conditions which could result in increases in the number of people unemployed and/or uninsured. Should that occur, it may result in decreased occupancy rates at our medical office buildings as well as a reduction in the revenues earned by the operators of our hospital facilities which would unfavorably impact our future bonus rentals (on the three Universal Health Services, Inc. hospital facilities) and may potentially have a negative impact on the future lease renewal terms and the underlying value of the hospital properties. Additionally, the general real estate market has been unfavorably impacted by the deterioration in economic and credit market conditions which may adversely impact the underlying value of our properties. The tightening in the credit markets and the instability in certain banking and financial institutions over the past several years has not had a material impact on us. However, there can be no assurance that unfavorable credit market conditions will not materially increase our cost of borrowings and/or have a material adverse impact on our ability to finance our future growth through borrowed funds. | ||||
Management is unable to predict the effect, if any, that the factors discussed above will have on the operating results of our lessees or on their ability to meet their obligations under the terms of their leases with us. Management’s estimate of future cash flows from our leased properties could be materially affected in the near term, if certain of the leases are not renewed or renewed with less favorable terms at the end of their lease terms. | ||||
Revenue Recognition | ||||
Our revenues consist primarily of rentals received from tenants, which are comprised of minimum rent (base rentals), bonus rentals and reimbursements from tenants for their pro-rata share of expenses such as common area maintenance costs, real estate taxes and utilities. | ||||
The minimum rent for all hospital facilities is fixed over the initial term or renewal term of the respective leases. Rental income recorded by our properties, including our consolidated and unconsolidated MOBs, relating to leases in excess of one year in length, is recognized using the straight-line method under which contractual rents are recognized evenly over the lease term regardless of when payments are due. The amount of rental revenue resulting from straight-line rent adjustments is dependent on many factors including the nature and amount of any rental concessions granted to new tenants, stipulated rent increases under existing leases, as well as the acquisitions and sales of properties that have existing in-place leases with terms in excess of one year. As a result, the straight-line adjustments to rental revenue may vary from period-to-period. Bonus rents are recognized when earned based upon increases in each facility’s net revenue in excess of stipulated amounts. Bonus rentals are determined and paid each quarter based upon a computation that compares the respective facility’s current quarter’s net revenue to the corresponding quarter in the base year. Tenant reimbursements for operating expenses are accrued as revenue in the same period the related expenses are incurred. | ||||
Real Estate Investments | ||||
On the date of acquisition, the purchase price of a property is allocated to the property’s land, buildings and intangible assets based upon our estimates of their fair values. Intangible assets include the value of in-place leases, above market leases and leasehold interest in land at the time of acquisition. Substantially all of our intangible assets consist of the value of in-place leases at December 31, 2014, and will be amortized over the remaining lease terms (aggregate weighted average of 4.4 years at December 31, 2014) and is expected to result in estimated aggregate amortization expense of $5.6 million, $4.5 million, $3.9 million $2.5 million and $1.9 million for 2015, 2016, 2017, 2018 and 2019, respectively. Amortization expense on intangible values of in place leases was $6.1 million for the year ended December 31, 2014, $6.0 million for the year ended December 31, 2013 and $7.8 million for the year ended December 31, 2012. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and capital improvements. The estimated original useful lives of our buildings ranges from 25-45 years and the estimated original useful lives of capital improvements ranges from 3-35 years. On a consolidated basis, depreciation expense was $14.4 million for the year ended December 31, 2014, $12.5 million for the year ended December 31, 2013 and $12.2 million for the year ended December 31, 2012. | ||||
Cash and Cash Equivalents | ||||
We consider all highly liquid investment instruments with original maturities of three months or less to be cash equivalents. | ||||
Asset Impairment | ||||
Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable. A property to be held and used is considered impaired only if management’s estimate of the aggregate future cash flows, less estimated capital expenditures, to be generated by the property, undiscounted and without interest charges, are less than the carrying value of the property. This estimate takes into consideration factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition, local market conditions and other factors. | ||||
The determination of undiscounted cash flows requires significant estimates by management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in anticipated action to be taken with respect to the property could impact the determination of whether an impairment exists and whether the effects could materially impact our net income. To the extent estimated undiscounted cash flows are less than the carrying value of the property, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property. | ||||
Assessment of the recoverability by us of certain lease related costs must be made when we have reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs. If we determine that the intangible assets are not recoverable from future cash flows, the excess of carrying value of the intangible asset over its estimated fair value is charged to income. | ||||
An other than temporary impairment of an investment/advance in an LLC is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value, including projected declines in cash flow. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is charged to income. | ||||
Investments in Limited Liability Companies (“LLCs”) | ||||
Our consolidated financial statements include the consolidated accounts of our controlled investments and those investments that meet the criteria of a variable interest entity where we are the primary beneficiary. In accordance with the FASB’s standards and guidance relating to accounting for investments and real estate ventures, we account for our unconsolidated investments in LLCs which we do not control using the equity method of accounting. The third-party members in these investments have equal voting rights with regards to issues such as, but not limited to: (i) divestiture of property; (ii) annual budget approval, and; (iii) financing commitments. These investments, which represent 33% to 95% non-controlling ownership interests, are recorded initially at our cost and subsequently adjusted for our net equity in the net income, cash contributions to, and distributions from, the investments. Pursuant to certain agreements, allocations of sales proceeds and profits and losses of some of the LLC investments may be allocated disproportionately as compared to ownership interests after specified preferred return rate thresholds have been satisfied. | ||||
At December 31, 2014, we have non-controlling equity investments or commitments in five jointly-owned LLCs which own medical office buildings. These LLCs are included in our financial statements for all periods presented on an unconsolidated basis pursuant to the equity method since they are not variable interest entities for which we are the primary beneficiary, nor do we hold a controlling voting interest. These LLCs are joint-ventures between us and non-related parties that manage and hold minority ownership interests in the entities. Each LLC is generally self-sustained from a cash flow perspective and generates sufficient cash flow to meet its operating cash flow requirements and service the third-party debt (if applicable) that is non-recourse to us. Although there is typically no ongoing financial support required from us to these entities since they are cash-flow sufficient, we may, from time to time, provide funding for certain purposes such as, but not limited to, significant capital expenditures, leasehold improvements and debt financing. Although we are not obligated to do so, if approved by us at our sole discretion, additional cash fundings are typically advanced as equity or member loans. | ||||
Palmdale Medical Properties was consolidated in our financial statements through June 30, 2013 at which time its master lease with a wholly-owned subsidiary of UHS expired. For the period of July 1, 2013 through December 31, 2013, we accounted for Palmdale Medical Properties under the equity method. As discussed below, as a result of our purchase of the third-party minority ownership interest in Palmdale Medical Properties, effective January 1, 2014, we began accounting for Palmdale Medical Properties on a consolidated basis. | ||||
Effective August 1, 2014, we purchased the third-party minority ownership interests, ranging from 5% to 15%, in six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza). Effective January 1, 2014, we purchased the third-party minority ownership interests (5% for each LLC) in Palmdale Medical Properties and Sparks Medical Properties. We formerly held non-controlling majority ownership interests in all of these LLCs, and as a result of our purchase of the minority ownership interests, we now hold 100% of the ownership interests in these LLCs which own MOBs. As a result, we began accounting for the six LLCs mentioned above on a consolidated basis effective August 1, 2014 and we began accounting for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014, as discussed below. Each of the property’s assets and liabilities were recorded at their fair values (see Note 3 to the consolidated financial statements for additional disclosure). Other than an increase in depreciation and amortization expense resulting from the fair value recognition related to the purchase of the minority ownership interests, we do not expect these transactions to have a material impact on our future results of operations. | ||||
Federal Income Taxes | ||||
No provision has been made for federal income tax purposes since we qualify as a real estate investment trust under Sections 856 to 860 of the Internal Revenue Code of 1986, and intend to continue to remain so qualified. As such, we are exempt from federal income taxes and we are required to distribute at least 90% of our real estate investment taxable income to our shareholders. | ||||
We are subject to a federal excise tax computed on a calendar year basis. The excise tax equals 4% of the amount by which 85% of our ordinary income plus 95% of any capital gain income for the calendar year exceeds cash distributions during the calendar year, as defined. No provision for excise tax has been reflected in the financial statements as no tax was due. | ||||
Earnings and profits, which determine the taxability of dividends to shareholders, will differ from net income reported for financial reporting purposes due to the differences for federal tax purposes in the cost basis of assets and in the estimated useful lives used to compute depreciation and the recording of provision for impairment losses. | ||||
The aggregate gross cost basis and net book value of the properties for federal income tax purposes are approximately $469 million and $316 million, respectively, at December 31, 2014. | ||||
Stock-Based Compensation | ||||
We expense the grant-date fair value of restricted stock awards over the vesting period. We recognize the grant-date fair value of equity-based compensation and account for these transactions using the fair-value based method. | ||||
The expense associated with share-based compensation arrangements is a non-cash charge. In the Consolidated Statements of Cash Flows, share-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities. | ||||
Fair Value | ||||
Fair value is a market-based measurement, not an entity-specific measurement and determined based upon the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Level 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). In instances when it is necessary to establish the fair value of our real estate investments and investments in LLCs we use unobservable inputs which are typically based on our own assumptions. | ||||
The fair value of our real estate investments, components of real estate investments and debt assumed in conjunction with acquisition and impairment activity, are considered to be Level 3 valuations as they are primarily based upon an income capitalization approach. Significant inputs into the models used to determine fair value of real estate investments and components of real estate investments include future cash flow projections, holding period, terminal capitalization rate and discount rates. Additionally the fair value of land takes into consideration comparable sales, as adjusted for site specific factors. The fair value of real estate investments is based upon significant judgments made by management, and accordingly, we typically obtain assistance from third party valuation specialists. Significant inputs into the models used to determine the fair value of assumed mortgages included the outstanding balance, term, stated interest rate and current market rate of the mortgage. | ||||
The carrying amounts reported in the balance sheet for cash, receivables, and short-term borrowings approximate their fair values due to the short-term nature of these instruments. Accordingly, these items are excluded from the fair value disclosures included elsewhere in these notes to the consolidated financial statements. | ||||
See Note 3-Acquisitions and Dispositions, for disclosure related to the $25.4 million net gain recorded during 2014 in connection with the fair value recognition of the assets and liabilities, including third-party debt, resulting from the purchase of minority ownership interests in majority-owned LLCs. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
New Accounting Standards | ||||
Except as noted below, there were no new accounting pronouncements during 2014 that impacted, or are expected to impact us. | ||||
In August 2014, FASB issued ASU No. 2014-15, “Preparation of Financial Statements—Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU 2014-15). Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, “Presentation of Financial Statements—Liquidation Basis of Accounting”. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the new criteria in ASU 2014-15 should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We will evaluate the going concern considerations in this ASU. | ||||
In April 2014, the Financial Accounting Standards Board updated the accounting guidance related to the definition of a discontinued operation and the related disclosures. The updated accounting guidance defines a discontinued operation as a disposal of a component or a group of components that is to be disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. We adopted this updated guidance in 2014 and the adoption of this update did not have a material impact on our consolidated financial statements. |
Relationship_with_UHS_and_Rela
Relationship with UHS and Related Party Transactions | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Relationship with UHS and Related Party Transactions | -2 | RELATIONSHIP WITH UHS AND RELATED PARTY TRANSACTIONS | |||||||||||||
Leases: We commenced operations in 1986 by purchasing properties of certain subsidiaries from UHS and immediately leasing the properties back to the respective subsidiaries. The hospital leases were entered into at the time we commenced operations and provided for initial terms of 13 to 15 years with up to six additional 5-year renewal terms. The current base rentals and lease and rental terms for each hospital leased to subsidiaries of UHS are provided below. The base rents are paid monthly and each lease also provides for additional or bonus rents which are computed and paid on a quarterly basis based upon a computation that compares current quarter revenue to a corresponding quarter in the base year. The hospital leases with subsidiaries of UHS are unconditionally guaranteed by UHS and are cross-defaulted with one another. | |||||||||||||||
The combined revenues generated from the leases on the UHS hospital facilities accounted for approximately 36% of our total revenue for the five years ended December 31, 2014 (approximately 28% for the year ended December 31, 2014 and approximately 30% for each of the years ended December 31, 2013 and 2012). The decrease during 2014 as compared to 2013, is due primarily to the 2014 purchase of the third-party minority ownership interests in eight LLCs in which we previously held noncontrolling majority ownership interests. As a result of these transactions, we own 100% of each of these LLCs and began accounting for each on a consolidated basis effective on the date of purchase of the minority ownership interests. Including 100% of the revenues generated at the unconsolidated LLCs in which we have various non-controlling equity interests ranging from 33% to 95%, the leases on the UHS hospital facilities accounted for approximately 20% of the combined consolidated and unconsolidated revenue for the five years ended December 31, 2014 (approximately 22% for each of the years ended December 31, 2014 and 2013 and 21% for the year ended December 31, 2012). In addition, including the two free-standing emergency departments (“FEDs”) acquired by us from subsidiaries of UHS during the first quarter of 2015 (as discussed below), fifteen MOBs/FEDs, that are either wholly or jointly-owned, include tenants which are subsidiaries of UHS. | |||||||||||||||
Pursuant to the Master Lease Document by and among us and certain subsidiaries of UHS, dated December 24, 1986 (the “Master Lease”), which governs the leases of all hospital properties with subsidiaries of UHS, UHS has the option to renew the leases at the lease terms described below by providing notice to us at least 90 days prior to the termination of the then current term. In addition, UHS has rights of first refusal to: (i) purchase the respective leased facilities during and for 180 days after the lease terms at the same price, terms and conditions of any third-party offer, or; (ii) renew the lease on the respective leased facility at the end of, and for 180 days after, the lease term at the same terms and conditions pursuant to any third-party offer. UHS also has the right to purchase the respective leased facilities at the end of the lease terms or any renewal terms at the appraised fair market value. In addition, the Master Lease, as amended during 2006, includes a change of control provision whereby UHS has the right, upon one month’s notice should a change of control of the Trust occur, to purchase any or all of the three leased hospital properties listed below at their appraised fair market value. | |||||||||||||||
During the third quarter of 2014, a wholly-owned subsidiary of UHS provided notification to us that, upon expiration of The Bridgeway’s lease term which occurred in December, 2014, it intended to exercise its option to purchase the real property of the facility. Upon expiration of the lease, the wholly-owned subsidiary of UHS exercised its option to purchase the real property of the facility and on December 31, 2014, The Bridgeway, a 103-bed behavioral health facility located in North Little Rock, Arkansas, was sold to UHS. Pursuant to the terms of the lease, we and the wholly-owned subsidiary of UHS were both required to obtain independent appraisals of the property to determine its fair market value. Based upon the property appraisals obtained by each party, the sales price of The Bridgeway was $17.3 million. A gain on divestiture of approximately $13.0 million is included in our results of operations for the twelve-month period ended December 31, 2014. During each of the last three years, our revenues, net cash provided by operating activities and funds from operations have included approximately $1.1 million earned annually in connection with The Bridgeway’s lease. | |||||||||||||||
During the first quarter of 2015, we purchased, from UHS, the real property of two newly-constructed and recently opened FEDs located in Weslaco and Mission, Texas. Each FED consists of approximately 13,600 square feet and will be operated by wholly-owned subsidiaries of UHS. In connection with these acquisitions, ten-year lease agreements with six, 5-year renewal terms have been executed with UHS for each FED. The first four, 5-year renewal terms (covering years 2025 through 2044) include 2% annual lease rate increases, computed on accumulative and compounded basis, and the last two, 5-year renewal terms (covering the years 2045 through 2054) will be at the then fair market value lease rates. The aggregate acquisition cost of these facilities was approximately $12.8 million, and the aggregate rental revenues earned by us at the commencement of the leases will be approximately $900,000 annually. | |||||||||||||||
The table below details the existing lease terms and renewal options for each of the UHS hospital facilities: | |||||||||||||||
Hospital Name | Type of Facility | Annual | End of | Renewal | |||||||||||
Minimum | Lease Term | Term | |||||||||||||
Rent | (years) | ||||||||||||||
McAllen Medical Center | Acute Care | $ | 5,485,000 | December, 2016 | 15 | (a) | |||||||||
Wellington Regional Medical Center | Acute Care | $ | 3,030,000 | December, 2016 | 15 | (b) | |||||||||
Southwest Healthcare System, Inland Valley Campus | Acute Care | $ | 2,648,000 | December, 2016 | 15 | (b) | |||||||||
(a) | UHS has three 5-year renewal options at existing lease rates (through 2031). | ||||||||||||||
(b) | UHS has one 5-year renewal option at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). | ||||||||||||||
Management cannot predict whether the leases with subsidiaries of UHS, which have renewal options at existing lease rates or fair market value lease rates, or any of our other leases, will be renewed at the end of their lease term. If the leases are not renewed at their current rates or the fair market value lease rates, we would be required to find other operators for those facilities and/or enter into leases on terms potentially less favorable to us than the current leases. In addition, if subsidiaries of UHS exercise their options to purchase the respective leased hospital facilities upon expiration of the lease terms, our future revenues could decrease if we were unable to earn a favorable rate of return on the sale proceeds received, as compared to the rental revenue currently earned pursuant to the hospital leases. | |||||||||||||||
As discussed above, Palmdale Medical Plaza, which is located in Palmdale, California, on the campus of a UHS hospital, had a master lease commitment by a wholly-owned subsidiary of UHS which expired effective as of July 1, 2013. This MOB, tenants of which include subsidiaries of UHS, was completed and opened during the third quarter of 2008 at which time the master lease commenced. The LLC that owns this MOB was deemed to be a variable interest entity during the term of the master lease and was therefore consolidated in our financial statements through June 30, 2013 since we were the primary beneficiary through that date. Effective July 1, 2013, this LLC was no longer deemed a variable interest entity and is accounted for in our financial statements on an unconsolidated basis pursuant to the equity method from July 1, 2013 through December 31, 2013. | |||||||||||||||
Effective January 1, 2014, we purchased the third-party minority ownership interests in two LLCs (Palmdale Medical Properties and Sparks Medical Properties) in which we formerly held non-controlling majority ownership interest. As a result of our purchase of the minority ownership interests, we now hold 100% of the ownership interests in these LLCs (which own MOBs) and began accounting for them on a consolidated basis. | |||||||||||||||
We have funded $2.6 million in equity as of December 31, 2014, and are committed to fund an additional $400,000, in exchange for a 95% non-controlling equity interest in an LLC (Texoma Medical Properties) that developed, constructed, owns and operates the Texoma Medical Plaza located in Denison, Texas, which was completed and opened during the first quarter of 2010. This MOB is located on the campus of a UHS acute care hospital which is owned and operated by UHS of Texoma, Inc. (“Texoma Hospital”), a wholly-owned subsidiary of UHS. This MOB has tenants that include subsidiaries of UHS. This LLC has a third-party term loan of $14.9 million, which is non-recourse to us, outstanding as of December 31, 2014. As this LLC is not considered to be a variable interest entity and does not meet the other criteria requiring consolidation of an investment, it is accounted for pursuant to the equity method. | |||||||||||||||
Advisory Agreement: UHS of Delaware, Inc. (the “Advisor”), a wholly-owned subsidiary of UHS, serves as Advisor to us under an Advisory Agreement (the “Advisory Agreement”) dated December 24, 1986. Pursuant to the Advisory Agreement, the Advisor is obligated to present an investment program to us, to use its best efforts to obtain investments suitable for such program (although it is not obligated to present any particular investment opportunity to us), to provide administrative services to us and to conduct our day-to-day affairs. All transactions between us and UHS must be approved by the Trustees who are unaffiliated with UHS (the “Independent Trustees”). In performing its services under the Advisory Agreement, the Advisor may utilize independent professional services, including accounting, legal, tax and other services, for which the Advisor is reimbursed directly by us. The Advisory Agreement may be terminated for any reason upon sixty days written notice by us or the Advisor. | |||||||||||||||
The Advisory Agreement expires on December 31 of each year; however, it is renewable by us, subject to a determination by the Independent Trustees, that the Advisor’s performance has been satisfactory. Our advisory fee was 0.70% during each of 2014 and 2013, and 0.65% during 2012, of our average invested real estate assets, as derived from our consolidated balance sheet. In December of 2014, based upon a review of our advisory fee and other general and administrative expenses, as compared to an industry peer group, the Advisory Agreement was renewed for 2015 pursuant to the same terms as the Advisory Agreement in place during 2014 and 2013. | |||||||||||||||
The average real estate assets for advisory fee calculation purposes exclude certain items from our consolidated balance sheet such as, among other things, accumulated depreciation, cash and cash equivalents, base and bonus rent receivables, deferred charges and other assets. The advisory fee is payable quarterly, subject to adjustment at year-end based upon our audited financial statements. In addition, the Advisor is entitled to an annual incentive fee equal to 20% of the amount by which cash available for distribution to shareholders for each year, as defined in the Advisory Agreement, exceeds 15% of our equity as shown on our consolidated balance sheet, determined in accordance with generally accepted accounting principles without reduction for return of capital dividends. The Advisory Agreement defines cash available for distribution to shareholders as net cash flow from operations less deductions for, among other things, amounts required to discharge our debt and liabilities and reserves for replacement and capital improvements to our properties and investments. No incentive fees were paid during 2014, 2013 or 2012 since the incentive fee requirements were not achieved. Advisory fees incurred and paid (or payable) to UHS amounted to $2.5 million during 2014, $2.4 million during 2013 and $2.1 million during 2012 and were based upon average invested real estate assets of $363 million, $338 million and $326 million during 2014, 2013 and 2012, respectively. | |||||||||||||||
Officers and Employees: Our officers are all employees of a wholly-owned subsidiary of UHS and although as of December 31, 2014 we had no salaried employees, our officers do typically receive annual stock-based compensation awards in the form of restricted stock. In special circumstances, if warranted and deemed appropriate by the Compensation Committee of the Board of Trustees, our officers may also receive one-time compensation awards in the form of restricted stock and/or cash bonuses. | |||||||||||||||
Share Ownership: As of December 31, 2014 and 2013, UHS owned 5.9% and 6.1%, respectively, of our outstanding shares of beneficial interest. | |||||||||||||||
SEC reporting requirements of UHS: UHS is subject to the reporting requirements of the Securities and Exchange Commission (“SEC”) and is required to file annual reports containing audited financial information and quarterly reports containing unaudited financial information. Since the leases on the hospital facilities leased to wholly-owned subsidiaries of UHS comprised approximately 28% of our consolidated revenues for the year ended December 31, 2014 and 30% of our consolidated revenues for each of the years ended December 31, 2013 and 2012, and since a subsidiary of UHS is our Advisor, you are encouraged to obtain the publicly available filings for Universal Health Services, Inc. from the SEC’s website at www.sec.gov. These filings are the sole responsibility of UHS and are not incorporated by reference herein. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Acquisitions and Dispositions | -3 | ACQUISITIONS AND DISPOSITIONS | |||||||||||||||
2015:00:00 | |||||||||||||||||
Acquisitions: | |||||||||||||||||
In February, 2015, we purchased the Haas Medical Office Park, a single-tenant, two single story buildings having an aggregate of approximately 16,000 rentable square feet, located in Ottumwa, Iowa, for approximately $4.1 million. | |||||||||||||||||
In January and February of 2015, we purchased, from UHS, the real property of two newly-constructed and recently opened free-standing emergency departments (“FEDs”) located in Weslaco and Mission, Texas. Each FED consists of approximately 13,600 square feet and will be operated by wholly-owned subsidiaries of UHS. In connection with these acquisitions, ten-year lease agreements with six 5-year renewal terms have been executed with UHS for each FED. The aggregate acquisition cost of these facilities was approximately $12.8 million, and the aggregate rental revenues earned by us at the commencement of the leases will be approximately $900,000 annually. | |||||||||||||||||
2014:00:00 | |||||||||||||||||
Acquisitions: | |||||||||||||||||
During 2014, we spent $15.6 million to acquire the following clinics and MOB: | |||||||||||||||||
• | spent $8.6 million to acquire the Hanover Emergency Center, a 22,000 rentable square feet, free-standing, full service emergency and imaging center, located in Mechanicsville, VA, in August, 2014. The single-tenant property is occupied pursuant to the terms of a 10-year lease with HCA Health Services of Virginia, Inc., and; | ||||||||||||||||
• | spent $7.2 million, including a $150,000 deposit made in 2013, to purchase the following in a single transaction in January, 2014: | ||||||||||||||||
• | The Children’s Clinic at Springdale – a 9,800 square foot, single-tenant medical office building located in Springdale, Arkansas, and; | ||||||||||||||||
• | The Northwest Medical Center at Sugar Creek – a 13,700 square foot, multi-tenant medical office building located in Bentonville, Arkansas. | ||||||||||||||||
The aggregate purchase price for these clinics and MOB was allocated to the assets and liabilities acquired consisting of tangible property and identified intangible assets, based on their respective fair values at acquisition as detailed in the table below. Substantially all of the intangible assets include the value of the in-place leases at the clinics and MOB at the time of acquisition which will be amortized over the average remaining lease term of approximately 9.8 years at the time of acquisition (aggregate weighted average of 9.5 years at December 31, 2014) for the Hanover Emergency Center and approximately 9.7 years at the time of acquisition (aggregate weighted average of 8.7 years at December 31, 2014) for the Arkansas facilities. | |||||||||||||||||
Land | $ | 3,010 | |||||||||||||||
Buildings and improvements | 10,664 | ||||||||||||||||
Intangible assets | 2,076 | ||||||||||||||||
Deposit paid in 2013 | (150 | ) | |||||||||||||||
Net cash paid | $ | 15,600 | |||||||||||||||
Additionally, during 2014, we spent an aggregate of $7.0 million, including $4.7 million in cash plus an additional $2.3 million in the form of a note payable to the previous third-party member (which was fully repaid in January, 2015 and is reflected in “Accrued expenses and other liabilities” on our Consolidated Balance Sheet at December 31, 2014) to purchase the minority ownership interests held by third party members in eight LLCs (as noted in the table below) in which we previously held various non-controlling majority ownership interests ranging from 85% to 95%. | |||||||||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | Effective Date | ||||||||||||||
prior to | |||||||||||||||||
minority | |||||||||||||||||
interest | |||||||||||||||||
purchase | |||||||||||||||||
Palmdale Medical Properties | 95 | % | Palmdale Medical Plaza | January 1, 2014 | |||||||||||||
Sparks Medical Properties… | 95 | % | Vista Medical Terrace & Sparks MOB | 1-Jan-14 | |||||||||||||
DVMC Properties | 90 | % | Desert Valley Medical Center | 1-Aug-14 | |||||||||||||
Santa Fe Scottsdale | 90 | % | Santa Fe Professional Plaza | 1-Aug-14 | |||||||||||||
PCH Medical Properties | 85 | % | Rosenberg Children’s Medical Plaza | 1-Aug-14 | |||||||||||||
Sierra Medical Properties | 95 | % | Sierra San Antonio Medical Plaza | 1-Aug-14 | |||||||||||||
PCH Southern Properties | 95 | % | Phoenix Children’s East Valley Care Center | 1-Aug-14 | |||||||||||||
3811 Bell Medical Properties | 95 | % | North Valley Medical Plaza | 1-Aug-14 | |||||||||||||
As a result of these minority ownership purchases, we now own 100% of each of these LLCs, which own medical office buildings, and began accounting for each on a consolidated basis at the effective date as noted in the table above. Pursuant to current accounting standards, at the effective date, we were required to record each property’s assets and liabilities at their fair values which resulted in the recording of a $25.4 million non-cash gain, which is included in our Consolidated Statement of Income for the twelve months ended December 31, 2014, representing the difference between the fair values and the equity method carrying value of each investment. The calculated fair value, categorized in level 3 of the fair value hierarchy and utilizing the income capitalization approach, is based upon the basis of capitalization of the net estimated earnings expectancy of the property, assuming continued use similar to the existing use of the acquired property. Each property’s continued cash flow analysis were also utilized in estimating the fair value of the property, whereby cash flows from the various tenants are calculated based upon lease commencement and termination dates. The capitalization rate and discount rate ranged from 7%-8.75% and 8%-9.75%, respectively. | |||||||||||||||||
The aggregate purchase price for these MOBs was allocated to net tangible property ($84.0 million), identified intangible assets ($6.5 million), and long term debt ($29.8 million). Substantially all of the intangible assets include the value of the in-place leases at these MOBs at the time of acquisition which will be amortized over the combined average remaining lease term of approximately 4.7 years at the time of acquisition (aggregate weighted average of 4.3 years at December 31, 2014) for the August, 2014 transactions and 5.3 years at the time of acquisition (aggregate weighted average of 5.5 years at December 31, 2014) for the January, 2014 transactions. Other than the increased depreciation and amortization expense resulting from the amortization of the intangible assets recorded in connection with these transactions, there was no material impact on our net income as a result of the consolidation of these LLCs. | |||||||||||||||||
Divestitures: | |||||||||||||||||
In December, 2014, upon expiration of The Bridgeway’s lease term, a wholly-owned subsidiary of UHS exercised its option to purchase the real property of the facility. The sale of The Bridgeway, a 103-bed behavioral health facility located in North Little Rock, Arkansas, generated $17.3 million of sale proceeds. Pursuant to the terms of the lease, we and the wholly-owned subsidiary of UHS were both required to obtain independent appraisals of the property to determine its fair market value of $17.3 million. Our revenues, net cash provided by operating activities and funds from operations have included approximately $1.1 million earned annually in connection with this lease. A $13.0 gain is included in our Consolidated Statement of Income for the twelve months ended December 31, 2014, representing the difference between the fair market value and the book value of this property. | |||||||||||||||||
2013:00:00 | |||||||||||||||||
Acquisition: | |||||||||||||||||
In August, 2013, we purchased the Ward Eagle Office Village located in Farmington Hills, Michigan. This multi-tenant MOB, which was purchased for approximately $4.1 million, consists of approximately 16,300 rentable square feet. | |||||||||||||||||
In June, 2013, we purchased the 5004 Poole Road MOB, located in Denison, Texas, on the campus of Texoma Medical Center, a wholly-owned subsidiary of UHS. This single-tenant MOB, which was purchased for approximately $625,000, consists of approximately 4,400 rentable square feet and is located adjacent to our Texoma Medical Plaza MOB. | |||||||||||||||||
The aggregate purchase price of approximately $4.7 million for these MOBs was allocated to the assets and liabilities acquired consisting of tangible property and identifiable intangible assets, based on their respective fair values at acquisition, as detailed in the table below. Substantially all of the intangible assets include the value of the in-place leases at Ward Eagle Office Village at the time of acquisition which are being amortized over the then average remaining lease term of approximately 9.8 years (aggregate weighted average of 8.4 years at December 31, 2014). | |||||||||||||||||
Land | $ | 316 | |||||||||||||||
Buildings and improvements | 3,749 | ||||||||||||||||
Intangible assets | 610 | ||||||||||||||||
Other assets | 21 | ||||||||||||||||
Liabilities (real property and operating) | (11 | ) | |||||||||||||||
Net cash paid | $ | 4,685 | |||||||||||||||
The Ward Eagle Office Village acquisition was valued utilizing the income capitalization approach. The calculated fair value, utilizing the income capitalization approach, is based upon the basis of capitalization of the net estimated earnings expectancy of the property, assuming continued use similar to the existing use of the acquired property’s continued cash flow analysis were also utilized in estimating the fair value of the property, whereby cash flows from the various tenants are calculated based upon lease commencement and termination dates. | |||||||||||||||||
New Construction: | |||||||||||||||||
The newly constructed Forney Medical Plaza II located in Forney, Texas was completed and opened in April, 2013. This multi-tenant medical office building, consisting of 30,000 rentable square feet, is owned by a limited partnership in which we hold a 95% non-controlling ownership interest. As this LLC is not considered to be a variable interest entity, it is accounted for pursuant to the equity method. | |||||||||||||||||
Divestitures: | |||||||||||||||||
There were no divestitures during 2013. | |||||||||||||||||
2012:00:00 | |||||||||||||||||
Acquisitions and New Construction: | |||||||||||||||||
In January and December, 2012, we purchased the: | |||||||||||||||||
• | PeaceHealth Medical Clinic, a 99,000 square foot, single tenant medical office building located in Bellingham, Washington, which was acquired in January, 2012 for $30.4 million; the weighted average remaining lease term on the date of acquisition was approximately ten years, and; | ||||||||||||||||
• | Northwest Texas Professional Office Tower – a 72,000 square foot, multi-tenant medical office building located in Amarillo, Texas, which was acquired in December, 2012 for $9.6 million; the weighted average remaining lease term at the date of acquisition was 5.1 years. | ||||||||||||||||
The aggregate purchase price of $40.0 million for these MOBs was allocated to the assets and liabilities acquired consisting of tangible property and identified intangible assets, based on their respective fair values at acquisition, as detailed in the table below. Substantially all of the intangible assets include the value of the in-place leases at the time of acquisition which are being amortized over the then average remaining lease term of approximately 7.0 years (aggregate weighted average of 5.0 years at December 31, 2014). | |||||||||||||||||
Land | $ | 1,900 | |||||||||||||||
Buildings and improvements | 32,090 | ||||||||||||||||
Intangible assets | 6,020 | ||||||||||||||||
Other assets | 799 | ||||||||||||||||
Liabilities (real property and operating) | (144 | ) | |||||||||||||||
Deposit paid in 2011 | (534 | ) | |||||||||||||||
Debt (including fair value adjustment of $799) | (23,240 | ) | |||||||||||||||
Net cash paid | $ | 16,891 | |||||||||||||||
The 2012 acquisitions were both valued utilizing the income capitalization approach as well as the sales comparison approach for valuing the land at the PeaceHealth Medical Clinic. The calculated fair values, utilizing the income capitalization approach, are based upon the basis of capitalization of the net estimated earnings expectancy of the properties, assuming continued use similar to the existing use of the acquired property’s continued cash flow analysis were also utilized in estimating the fair values of the properties, whereby cash flows from the various tenants are calculated based upon lease commencement and termination dates. | |||||||||||||||||
The following table summarizes significant unobservable quantitative inputs and assumptions used for the 2012 acquired properties categorized in Level 3 of the fair value hierarchy: | |||||||||||||||||
Assets | Fair Value at | Valuation Technique | Unobservable inputs | Range | |||||||||||||
December 31, 2012 | |||||||||||||||||
PeaceHealth Medical Clinic (a.)(b.) | $ | 30,400,000 | Income Capitalization Approach | Capitalization Rate | 7.5 | % | |||||||||||
Discount Rate | 8.5 | % | |||||||||||||||
Northwest Texas Professional Office Tower | $ | 9,600,000 | Income Capitalization Approach | Capitalization Rate | 8.6 | % | |||||||||||
Discount Rate | 9.5 | % | |||||||||||||||
(a.) | The fair value of the land was estimated based upon the sales comparison approach. | ||||||||||||||||
(b.) | Debt is recorded at its current estimated fair value based upon significant inputs including outstanding loan balance, term, stated interest rate and current market rate of the mortgage. | ||||||||||||||||
For these MOBs acquired during 2012, we recorded aggregate revenue of $2.7 million and net income of approximately $232,000 (excluding transaction expenses of $680,000) during 2012. | |||||||||||||||||
Divestiture: | |||||||||||||||||
In February, 2012, Canyon Healthcare Properties, a limited liability company (“LLC”) in which we owned a 95% noncontrolling ownership interest, completed the divestiture of the Canyon Springs Medical Plaza. As partial consideration for the transaction, the buyer assumed an existing third-party mortgage related to this property. The divestiture by this LLC generated approximately $8.1 million of cash proceeds to us, net of closing costs and the minority members’ share of the proceeds. This divestiture resulted in a gain of approximately $7.4 million which is included in our consolidated statement of income for the year ended December 31, 2012. | |||||||||||||||||
In October, 2012, 575 Hardy Investors, a LLC in which we owned a 90% non-controlling ownership interest, completed the divestiture of the Centinela Medical Building Complex. Including the repayment to us of a previously provided $8.0 million member loan, the divestiture by this LLC generated approximately $12.2 million of cash proceeds to us, net of closing costs and minority members’ share of the proceeds. This divestiture resulted in a gain of approximately $1.1 million, which is included in our consolidated statement of income for the year ended December 31, 2012. | |||||||||||||||||
Assuming the 2012 acquisitions and divestitures occurred on January 1, 2012, our pro forma net revenues and net income for the year ended December 31, 2012 would have been approximately $55.4 million and $11.6 million, or $.92 per diluted share, respectively, without giving effect to the gains and transaction costs recorded during 2012. | |||||||||||||||||
As of December 31, 2014, our net intangible assets total $23.1 million (net of $19.7 million accumulated amortization) and substantially all of the amount is related to acquired, in-place leases which have a weighted average remaining amortization period of 4.4 years. |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | -4 | LEASES | |||
All of our leases are classified as operating leases with initial terms typically ranging from 3 to 15 years with up to five additional, five-year renewal options. Under the terms of the leases, we earn fixed monthly base rents and pursuant to the leases with subsidiaries of UHS, we may earn periodic bonus rents (see Note 1). The bonus rents from the subsidiaries of UHS, which are based upon each facility’s net revenue in excess of base amounts, are computed and paid on a quarterly basis based upon a computation that compares current quarter revenue to the corresponding quarter in the base year. | |||||
Minimum future base rents from non-cancelable leases related to properties included in our financial statements on a consolidated basis, excluding increases resulting from changes in the consumer price index, bonus rents and the impact of straight line rent, are as follows (amounts in thousands): | |||||
2015 | $ | 49,207 | |||
2016 | 46,051 | ||||
2017 | 30,330 | ||||
2018 | 25,799 | ||||
2019 | 21,127 | ||||
Thereafter | 57,916 | ||||
Total minimum base rents | $ | 230,430 | |||
Some of the leases contain gross terms where operating expenses are included in the base rent amounts. Other leases contain net terms where the operating expenses are assessed separately from the base rentals. The table above contains a mixture of both gross and net leases, and does not include any separately calculated operating expense reimbursements. Under the terms of the hospital leases, the lessees are required to pay all operating costs of the properties including property insurance and real estate taxes. Tenants of the medical office buildings generally are required to pay their pro-rata share of the property’s operating costs. |
Debt_and_Financial_Instruments
Debt and Financial Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt and Financial Instruments | -5 | DEBT AND FINANCIAL INSTRUMENTS | |||||||||
Debt: | |||||||||||
In July, 2011, we entered into a $150 million revolving credit agreement (“Credit Agreement”) which is scheduled to expire on July 24, 2015. We are in the process of renegotiating our Credit Agreement and, although we can provide no assurance we will do so, we expect to complete a replacement credit facility by March 31, 2015. The Credit Agreement includes a $50 million sub limit for letters of credit and a $20 million sub limit for swingline/short-term loans. The Credit Agreement also provides an option to increase the total facility borrowing capacity by an additional $50 million, subject to lender agreement. Borrowings made pursuant to the Credit Agreement will bear interest, at our option, at one, two, three, or six month LIBOR plus an applicable margin ranging from 1.75% to 2.50% or at the Base Rate plus an applicable margin ranging from 0.75% to 1.50%. The Credit Agreement defines “Base Rate” as the greatest of: (a) the administrative agent’s prime rate; (b) the federal funds effective rate plus 0.50%, and; (c) one month LIBOR plus 1%. A fee of 0.30% to 0.50% will be charged on the unused portion of the commitment. The margins over LIBOR, Base Rate and the commitment fee are based upon our ratio of debt to total capital. At December 31, 2014, the applicable margin over the LIBOR rate was 2.00%, the margin over the Base Rate was 1.00%, and the commitment fee was 0.35%. | |||||||||||
At December 31, 2014, we had $89.8 million of outstanding borrowings and $6.3 million of letters of credit outstanding against our revolving credit agreement. We had $54.0 million of available borrowing capacity, net of the outstanding borrowings and letters of credit outstanding as of December 31, 2014. There are no compensating balance requirements. The average amounts outstanding under our revolving credit agreement were $104.6 million in 2014, $86.3 million in 2013 and $75.4 million in 2012 with corresponding effective interest rates, including commitment fees, of 2.4% in 2014, 2.2% in 2013 and 2.4% in 2012. The carrying amount and fair value of borrowings outstanding pursuant to the Credit Agreement was $89.8 million at December 31, 2014. | |||||||||||
On February 10, 2015, we borrowed an additional $4.9 million under our revolving credit agreement, which was utilized to repay the outstanding mortgage balance on the Spring Valley Medical Office Building. The mortgage loan on this property matured on February 10, 2015. | |||||||||||
On July 1, 2014, we borrowed an additional $9.1 million under our revolving credit agreement, which was utilized to repay the outstanding mortgage balance on the Summerlin Hospital Medical Office Building I. The mortgage loan on this property matured on July 1, 2014. | |||||||||||
Covenants relating to the Agreement require the maintenance of a minimum tangible net worth and specified financial ratios, limit our ability to incur additional debt, limit the aggregate amount of mortgage receivables and limit our ability to increase dividends in excess of 95% of cash available for distribution, unless additional distributions are required to comply with the applicable section of the Internal Revenue Code of 1986 and related regulations governing real estate investment trusts. We are in compliance with all of the covenants at December 31, 2014. We also believe that we would remain in compliance if the full amount of our commitment was borrowed. | |||||||||||
The following table includes a summary of the required compliance ratios, giving effect to the covenants contained in the Credit Agreement (dollar amounts in thousands): | |||||||||||
Covenant | December 31, | ||||||||||
2014 | |||||||||||
Tangible net worth | $ | 125,000 | $ | 181,458 | |||||||
Debt to total capital | < 55 | % | 30 | % | |||||||
Debt service coverage ratio | > 3.00x | 25.4x | |||||||||
Debt to cash flow ratio | < 3.50x | 1.29x | |||||||||
We have sixteen mortgages, all of which are non-recourse to us, included on our consolidated balance sheet as of December 31, 2014, with a combined outstanding balance of $122.9 million (excluding net debt premium of $523,000 at December 31, 2014). The following table summarizes our outstanding mortgages at December 31, 2014 (amounts in thousands): | |||||||||||
Facility Name | Outstanding | Interest | Maturity | ||||||||
Balance | Rate | Date | |||||||||
(in thousands) (a) | |||||||||||
Spring Valley Medical Office Building fixed rate mortgage loan (b.) | $ | 4,920 | 5.5 | % | February, 2015 | ||||||
Desert Valley Medical Center floating rate mortgage loan (c.) | 3,861 | 3.41 | % | October, 2015 | |||||||
Palmdale Medical Plaza fixed rate mortgage loan (c.) | 6,008 | 3.69 | % | October, 2015 | |||||||
Summerlin Hospital Medical Office Building III floating rate mortgage loan | 11,025 | 3.41 | % | December, 2016 | |||||||
Peace Health fixed rate mortgage loan | 21,248 | 5.64 | % | April, 2017 | |||||||
Auburn Medical II floating rate mortgage loan | 7,183 | 2.9 | % | April, 2017 | |||||||
Medical Center of Western Connecticut fixed rate mortgage loan | 4,785 | 6 | % | June, 2017 | |||||||
Summerlin Hospital Medical Office Building II fixed rate mortgage loan | 11,729 | 5.5 | % | October, 2017 | |||||||
Phoenix Children’s East Valley Care Center fixed rate mortgage loan | 6,485 | 5.88 | % | December, 2017 | |||||||
Centennial Hills Medical Office Building floating rate mortgage loan | 10,642 | 3.41 | % | January, 2018 | |||||||
Sparks Medical Building/Vista Medical Terrace floating rate mortgage loan | 4,479 | 3.41 | % | February, 2018 | |||||||
Rosenberg Children’s Medical Plaza fixed rate mortgage loan | 8,479 | 4.85 | % | May, 2018 | |||||||
Vibra Hospital of Corpus Christi fixed rate mortgage loan | 2,902 | 6.5 | % | July, 2019 | |||||||
700 Shadow Lane and Goldring MOBs fixed rate mortgage loan | 6,601 | 4.54 | % | June, 2022 | |||||||
BRB Medical Office Building fixed rate mortgage loan | 6,673 | 4.27 | % | December, 2022 | |||||||
Tuscan Professional Building fixed rate mortgage loan | 5,862 | 5.56 | % | June, 2025 | |||||||
Total | $ | 122,882 | |||||||||
(a.) | Amortized principal payments are made on a monthly basis. | ||||||||||
(b.) | This loan was repaid in full on February 10, 2015, utilizing funds borrowed under our revolving credit facility. | ||||||||||
(c.) | We expect these loans, which have a maturity date in October, 2015, to be refinanced at the then current market interest rates or repaid utilizing funds borrowed under our revolving credit facility. | ||||||||||
The mortgages are secured by the real property of the buildings as well as property leases and rents. The mortgages have a combined fair value of approximately $124.7 million as of December 31, 2014. Changes in market rates on our fixed rate debt impacts the fair value of debt, but it has no impact on interest incurred or cash flow. | |||||||||||
As of December 31, 2014, our aggregate consolidated scheduled debt repayments (including mortgages) are as follows (amounts in thousands): | |||||||||||
2015(a) | $ | 107,646 | |||||||||
2016 | 13,600 | ||||||||||
2017 | 50,399 | ||||||||||
2018 | 22,658 | ||||||||||
2019 | 3,463 | ||||||||||
Later | 14,866 | ||||||||||
Total | $ | 212,632 | |||||||||
(a) | Includes repayment of $89.8 million of outstanding borrowings under the terms of our $150 million revolving credit agreement. | ||||||||||
Financial Instruments: | |||||||||||
During the third quarter of 2013, we entered into an interest rate cap on a total notional amount of $10 million whereby we paid a premium of $136,000. During the first quarter of 2014, we entered into two additional interest rate cap agreements on a total notional amount of $20 million whereby we paid premiums of $134,500. In exchange for the premium payments, the counterparties agreed to pay us the difference between 1.50% and one-month LIBOR if one-month LIBOR rises above 1.50% during the term of the cap. From inception through December 31, 2014, no payments have been made to us by the counterparties pursuant to the terms of these caps which expire on January 13, 2017. |
Dividends_and_Equity_Issuance_
Dividends and Equity Issuance Program | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Dividends and Equity Issuance Program | -6 | DIVIDENDS AND EQUITY ISSUANCE PROGRAM | ||
Dividends: | ||||
During each of the last three years, dividends were declared and paid by us as follows: | ||||
• | 2014: $2.52 per share of which $1.478 per share was ordinary income and $1.042 per share was total capital gain (total capital gain amount includes Unrecaptured Section 1250 gain of $.305 per share). | |||
• | 2013: $2.495 per share of which $1.96 per share was ordinary income and $.535 per share was a return of capital distribution. | |||
• | 2012: $2.46 per share of which $1.294 per share was ordinary income and $1.166 per share was total capital gain (total capital gain includes Unrecaptured Section 1250 gain of $.281 per share). | |||
Equity Issuance Program: | ||||
During the fourth quarter of 2013, we commenced an at-the-market (“ATM”) equity issuance program, pursuant to the terms of which we may sell, from time-to-time, common shares of our beneficial interest up to an aggregate sales price of $50 million to or through Merrill Lynch, Pierce, Fenner and Smith, Incorporated (“Merrill Lynch”), as sales agent and/or principal. | ||||
Since inception of this program, we have issued 580,900 shares at an average price of $45.97 per share, which generated approximately $25.6 million of net cash proceeds or receivables (net of approximately$1.1 million, consisting of compensation of $667,000 to Merrill Lynch, as well as $391,000 of other various fees and expenses), as follows: | ||||
• | 2014: We issued 426,187 shares at an average price of $47.51 per share which generated approximately $19.5 million of net cash proceeds or receivables (net of approximately $701,000, consisting of compensation of $506,000 to Merrill Lynch, as well as $195,000 of other various fees and expenses), and; | |||
• | 2013: We issued 154,713 shares at an average price of $41.71 per share which generated approximately $6.1 million of net cash proceeds or receivables (net of $357,000, consisting of compensation of $161,000 to Merrill Lynch, as well as $196,000 of other various fees and expenses). | |||
In connection with this ATM program, our consolidated balance sheet includes approximately $1.1 million at December 31, 2014, and $600,000 at December 31, 2013, of net proceeds due to us in connection with shares issued in late December 2014 and 2013. The payment related to these shares was received by us in early January 2015, and early January, 2014, respectively. The net proceeds receivable were non-cash items, as presented on the Consolidated Statements of Cash Flows at December 31, 2014 and 2013. |
Incentive_Plans
Incentive Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Incentive Plans | -7 | INCENTIVE PLANS | |||||||||||
During 2007, upon the expiration of our 1997 Incentive Plan, as discussed below, our Board of Trustees and shareholders approved the Universal Health Realty Income Trust 2007 Restricted Stock Plan (the “2007 Plan”). A total of 75,000 shares were authorized for issuance under this plan and a total of 57,825 shares, net of cancellations, have been issued pursuant to the terms of this plan, 39,245 of which have vested as of December 31, 2014. At December 31, 2014 there are 17,175 shares remaining for issuance under the terms of the 2007 Plan. | |||||||||||||
During 2014, there were 9,850 restricted Shares of Beneficial Interest, net of cancellations, issued to the Trustees and officers of the Trust pursuant to the 2007 Plan at a weighted average grant price of $43.21 per share ($425,619 in the aggregate). These restricted shares are scheduled to vest in June of 2016 (the second anniversary of the date of grant). | |||||||||||||
During 2013, there were 8,730 restricted Shares of Beneficial Interest, net of cancellations, issued to the Trustees and officers of the Trust pursuant to the 2007 Plan at a weighted average grant price of $43.54 per share ($380,104 in the aggregate). These restricted shares are scheduled to vest in June of 2015 (the second anniversary of the date of grant). | |||||||||||||
During 2012, there were 10,375 restricted Shares of Beneficial Interest, net of cancellations, issued to the Trustees and officers of the Trust pursuant to the 2007 Plan at a weighted average grant price of $39.05 per share ($405,144 in the aggregate). These restricted shares vested in June of 2014 (the second anniversary of the date of grant). Included the restricted stock issuances during 2012 were one-time special compensation awards made to our executive officers in recognition of their efforts and contributions in connection with various acquisitions, divestitures and purchases of third-party minority interests in certain majority-owned LLCs as completed at various times during 2011 and the first quarter of 2012. | |||||||||||||
We expense the grant-date fair value restricted stock awards under the straight-line method over the stated vesting period of the award. In connection with these grants, we recorded compensation expense of approximately $399,000, $375,000 and $329,000 and during 2014, 2013 and 2012, respectively. The remaining expenses associated with these grants is approximately $381,000 and will be recorded over the remaining weighted average vesting period for outstanding restricted Shares of Beneficial Interest of approximately one year at December 31, 2014. | |||||||||||||
Prior to its expiration in 2007, the Universal Health Realty Income Trust 1997 Incentive Plan (the “1997 Plan”) provided for the granting of stock options and dividend equivalents rights (“DERs”) to employees of the Trust, including officers and trustees. Awards granted pursuant to the 1997 Plan prior to its termination date remain exercisable, in accordance with the terms of the outstanding agreements. All stock options were granted with an exercise price equal to the fair market value on the date of the grant. The options granted vested ratably at 25% per year beginning one year after the date of grant, and expire in ten years. DERs on outstanding awards are earned in amounts equal to the cash or stock dividends declared subsequent to the date of grant. As of December 31, 2014, there were 36,000 options outstanding and exercisable under the 1997 Plan with an average exercise price of $35.94 per share and a remaining weighted average life of 1.6 years. The net expense recorded in connection with the DERs did not have a material impact on our consolidated financial statements during each of the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
During the fourth quarter of 2008, the Board of Trustees of the Trust approved amendments to the outstanding stock option agreements made pursuant to the 1997 Plan. These original agreements provided for the deferred payment of dividend equivalents on shares covered by the options, with payment tied to the date the options were exercised or expire. In order to meet certain changes to tax law requirements, the agreements, as amended, provide for the current payment of dividend equivalents in the years in which dividends are declared and paid or, if later, when the related options become vested. DERs with respect to 36,000 shares, 40,000 shares and 43,000 shares were outstanding at December 31, 2014, 2013 and 2012, respectively. In December of 2014, 2013 and 2012, DERs which were vested and accrued as of each respective date, were paid to officers and Trustees of the Trust amounting to $94,000, $106,000 and $116,000, respectively. | |||||||||||||
Stock options to purchase shares of beneficial interest have been granted to eligible individuals, including our officers and trustees. Information with respect to these options, before adjustment to the option price to give effect to the dividend equivalent rights, is summarized as follows: | |||||||||||||
Outstanding Options | Number | Exercise | Grant Price Range | ||||||||||
of Shares | Weighted- | (High-Low) | |||||||||||
Average Price | |||||||||||||
Balance, January 1, 2012 | 51,000 | $ | 33.89 | $ | 36.53/$26.09 | ||||||||
Exercised | (8,000 | ) | 26.76 | $ | 27.65/$26.09 | ||||||||
Balance, January 1, 2013 | 43,000 | $ | 35.22 | $ | 36.53/$29.44 | ||||||||
Exercised | (3,000 | ) | 29.44 | $ | 29.44/$29.44 | ||||||||
Balance, January 1, 2014 | 40,000 | $ | 35.65 | $ | 36.53/$30.06 | ||||||||
Exercised | (4,000 | ) | 33.07 | $ | 30.06/$34.07 | ||||||||
Outstanding options vested and exercisable as of December 31, 2014 | 36,000 | $ | 35.94 | $ | 34.90/$36.53 | ||||||||
During 2014, there were 4,000 stock options exercised with a total in-the-money value of $44,160. During 2013, there were 3,000 stock options exercised with a total in-the-money value of $46,290. During 2012, there were 8,000 stock options exercised with a total in-the-money value of $148,930. | |||||||||||||
There were no unvested options as of December 31, 2014. The following table provides information about options outstanding and exercisable options at December 31, 2014: | |||||||||||||
Options | |||||||||||||
Outstanding | |||||||||||||
and Exercisable | |||||||||||||
Number | 36,000 | ||||||||||||
Weighted average exercise price | $ | 35.94 | |||||||||||
Aggregate intrinsic value | $ | 438,430 | |||||||||||
Weighted average remaining contractual life | 1.6 | ||||||||||||
The weighted average remaining contractual life and weighted average exercise price for options outstanding and the weighted average exercise prices per share for exercisable options at December 31, 2014 were as follows: | |||||||||||||
Options Outstanding and | |||||||||||||
Exercisable | |||||||||||||
Exercise Price | Shares | Weighted | Weighted | ||||||||||
Average | Average | ||||||||||||
Exercise | Remaining | ||||||||||||
Price Per | Contractual | ||||||||||||
Share | Life (in | ||||||||||||
Years) | |||||||||||||
$34.90 -$34.90 | 13,000 | 34.9 | 0.7 | ||||||||||
$36.53 -$36.53 | 23,000 | 36.53 | 2.2 | ||||||||||
Total | 36,000 | $ | 35.94 | 1.6 | |||||||||
Summarized_Financial_Informati
Summarized Financial Information of Equity Affiliates | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summarized Financial Information of Equity Affiliates | -8 | SUMMARIZED FINANCIAL INFORMATION OF EQUITY AFFILIATES | |||||||||||
Our consolidated financial statements include the consolidated accounts of our controlled investments and those investments that meet the criteria of a variable interest entity where we are or were the primary beneficiary. In accordance with the Financial Accounting Standards Board’s (“FASB”) standards and guidance relating to accounting for investments and real estate ventures, we account for our unconsolidated investments in LLCs which we do not control using the equity method of accounting. The third-party members in these investments have equal voting rights with regards to issues such as, but not limited to: (i) divestiture of property; (ii) annual budget approval, and; (iii) financing commitments. These investments, which represent 33% to 95% non-controlling ownership interests, are recorded initially at our cost and subsequently adjusted for our net equity in the net income, cash contributions to, and distributions from, the investments. Pursuant to certain agreements, allocations of sales proceeds and profits and losses of some of the LLC investments may be allocated disproportionately as compared to ownership interests after specified preferred return rate thresholds have been satisfied. | |||||||||||||
At December 31, 2014, we have non-controlling equity investments or commitments in five jointly-owned LLCs which own MOBs. As of December 31, 2014, we accounted for these LLCs on an unconsolidated basis pursuant to the equity method since they are not variable interest entities. The majority of these LLCs are joint-ventures between us and non-related parties that manage and hold minority ownership interests in the entities. Each LLC is generally self-sustained from a cash flow perspective and generates sufficient cash flow to meet its operating cash flow requirements and service the third-party debt (if applicable) that is non-recourse to us. Although there is typically no ongoing financial support required from us to these entities since they are cash-flow sufficient, we may, from time to time, provide funding for certain purposes such as, but not limited to, significant capital expenditures, leasehold improvements and debt financing. Although we are not obligated to do so, if approved by us at our sole discretion, additional cash fundings are typically advanced as equity or member loans. These LLCs maintain property insurance on the properties. | |||||||||||||
Effective August 1, 2014, we purchased the minority ownership interests, ranging from 5% to 15%, held by third-party members in six LLCs in which we previously held noncontrolling majority ownership interests, as noted in the table below. As a result of these minority ownership purchases, we now own 100% of each of these LLCs and began to account for them on a consolidated basis effective August 1, 2014. Prior to August 1, 2014, these LLCs were accounted for on an unconsolidated basis pursuant to the equity method. | |||||||||||||
Effective January 1, 2014, we purchased the 5% minority ownership interests held by third-party members in two LLCs in which we previously held noncontrolling majority ownership interests, as noted in the table below. As a result of these minority ownership purchases, we now own 100% of each of these LLCs and account for them on a consolidated basis. Prior to January 1, 2014, these LLCs were accounted for on an unconsolidated basis pursuant to the equity method. Previously, Palmdale Medical Properties (“Palmdale”) was included in our financial statements on a consolidated basis through June 30, 2013 as a result of a master lease arrangement with a wholly-owned subsidiary of UHS, which expired on July 1, 2013. | |||||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | Effective Date | ||||||||||
prior to | |||||||||||||
minority | |||||||||||||
interest | |||||||||||||
purchase | |||||||||||||
Palmdale Medical Properties | 95 | % | Palmdale Medical Plaza | January 1, 2014 | |||||||||
Sparks Medical Properties | 95 | % | Vista Medical Terrace & Sparks MOB | 1-Jan-14 | |||||||||
DVMC Properties | 90 | % | Desert Valley Medical Center | 1-Aug-14 | |||||||||
Santa Fe Scottsdale | 90 | % | Santa Fe Professional Plaza | 1-Aug-14 | |||||||||
PCH Medical Properties | 85 | % | Rosenberg Children’s Medical Plaza | 1-Aug-14 | |||||||||
Sierra Medical Properties | 95 | % | Sierra San Antonio Medical Plaza | 1-Aug-14 | |||||||||
PCH Southern Properties | 95 | % | Phoenix Children’s East Valley Care Center | 1-Aug-14 | |||||||||
3811 Bell Medical Properties | 95 | % | North Valley Medical Plaza | 1-Aug-14 | |||||||||
The following property table represents the five LLCs in which we own a noncontrolling interest and were accounted for under the equity method as of December 31, 2014: | |||||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | |||||||||||
Suburban Properties | 33 | % | Suburban Medical Plaza II | ||||||||||
Brunswick Associates (a.) | 74 | % | Mid Coast Hospital MOB | ||||||||||
Arlington Medical Properties (b.) | 75 | % | Saint Mary’s Professional | ||||||||||
Office Building | |||||||||||||
Grayson Properties (c.) | 95 | % | Texoma Medical Plaza | ||||||||||
FTX MOB Phase II (d.) | 95 | % | Forney Medical Plaza II | ||||||||||
(a.) | This LLC has a third-party term loan of $9.0 million, which is non-recourse to us, outstanding as of December 31, 2014. | ||||||||||||
(b.) | We have funded $5.2 million in equity as of December 31, 2014 and are committed to invest an additional $1.1 million. This LLC has a third-party term loan of $23.3 million, which is non-recourse to us, outstanding as of December 31, 2014. | ||||||||||||
(c.) | We have funded $2.6 million in equity as of December 31, 2014, and are committed to fund an additional $400,000. This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LLC has a third-party term loan of $14.9 million, which is non-recourse to us, outstanding as of December 31, 2014 | ||||||||||||
(d.) | We have committed to invest up to $2.5 million in equity and debt financing, of which $1.4 million has been funded as of December 31, 2014. This LLC has a third-party term loan of $5.5 million, which is non-recourse to us, outstanding as of December 31, 2014. | ||||||||||||
Below are the combined statements of income for the LLCs accounted for under the equity method at December 31, 2014, 2013 and 2012. The data for the year ended December 31, 2014 includes the financial results for the six above-mentioned LLCs in which we purchased the minority ownership interests in August, 2014 for the period of January through July of 2014 (during which they were accounted for under the equity method). The data for the year ended December 31, 2012 includes the prorated amounts, through the date of their divestitures, for two LLCs that were divested during the year (Canyon Healthcare Properties, 95% ownership interest, divested in February, 2012 and 575 Hardy Investors, 90% ownership interest, divested in October, 2012). | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014(b.) | 2013(c.) | 2012(c.) (d.) | |||||||||||
(amounts in thousands) | |||||||||||||
Revenues | $ | 17,292 | $ | 21,001 | $ | 21,448 | |||||||
Operating expenses | 6,769 | 8,705 | 8,974 | ||||||||||
Depreciation and amortization | 2,968 | 4,039 | 4,140 | ||||||||||
Interest, net | 4,261 | 6,353 | 6,056 | ||||||||||
Net income before gains on divestitures | $ | 3,294 | $ | 1,904 | $ | 2,278 | |||||||
Our share of net income before gains on divestitures (a.) | $ | 2,428 | $ | 2,095 | $ | 2,365 | |||||||
Our share of gains on divestitures | $ | — | $ | — | $ | 8,520 | |||||||
(a.) | Our share of net income during 2014, 2013 and 2012, includes interest income earned by us on various advances made to LLCs of approximately $834,000, $1.9 million and $1.5 million, respectively. | ||||||||||||
(b.) | As mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. Prior to August 1, 2014, the financial results of these entities were accounted for under the equity method on an unconsolidated basis. The year ended December 31, 2014, include the financial results of the six mentioned LLCs for seven months ended July 31, 2014. | ||||||||||||
(c.) | As mentioned above, we began to account for Sparks Medical Properties on a consolidated basis as of January 1, 2014. Prior to January 1, 2014, the financial results of this entity were accounted for under the equity method on an unconsolidated basis. These amounts include the financial results for Sparks Medical Properties for the years ended December 31, 2013 and 2012. In addition, we purchased the minority ownership interests in six LLCs effective August 1, 2014 (as mentioned in (b.) above) and began to account for the LLCs a consolidated basis as of that date. These amounts include the financial results for these six LLCs for the years ended December 31, 2013 and 2012. As also mentioned above, we began to account for Palmdale Medical Properties on a consolidated basis as of January 1, 2014. Prior thereto, as a result of a master lease commitment with a wholly-owned subsidiary of UHS which expired effective as of July 1, 2013, the financial results of Palmdale Medical Properties was accounted for on a consolidated basis through the six-month period ended June 30, 2013 and then on an unconsolidated basis for the six-month period of July 1, 2013 through December 31, 2013. Therefore the financial results of this entity are reflected in the table above for the six-month period of July 1, 2013 through December 31, 2013. | ||||||||||||
(d.) | As mentioned above, during the first quarter of 2012 and the fourth quarter of 2012, two LLCs in which we previously owned various noncontrolling, majority ownership interests (Canyon Healthcare Properties and 575 Hardy Investors), completed divestitures of medical office buildings and related real property. Our share of the financial results of the divested entities were previously accounted for on an unconsolidated basis under the equity method. | ||||||||||||
Below are the combined balance sheets for the LLCs that were accounted for under the equity method as of December 31, 2014 and 2013: | |||||||||||||
December 31, | |||||||||||||
2014(a.) | 2013(a.)(b.) | ||||||||||||
(amounts in thousands) | |||||||||||||
Net property, including CIP | $ | 62,450 | $ | 119,547 | |||||||||
Other assets | 7,367 | 9,479 | |||||||||||
Total assets | $ | 69,817 | $ | 129,026 | |||||||||
Liabilities | $ | 3,348 | $ | 5,336 | |||||||||
Mortgage notes payable, non-recourse to us | 52,728 | 80,112 | |||||||||||
Advances payable to us | — | 22,911 | |||||||||||
Equity | 13,741 | 20,667 | |||||||||||
Total liabilities and equity | $ | 69,817 | $ | 129,026 | |||||||||
Our share of equity and advances to LLCs | $ | 8,605 | $ | 39,201 | |||||||||
(a.) | The amounts presented include the balance sheet amounts for each of the five entities that are accounted for on an unconsolidated basis as of December 31, 2014. | ||||||||||||
(b.) | As mentioned above, we began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. As also mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. The amounts reflected for December 31, 2013, include the balance sheet amounts for each of these entities since they were accounted for on an unconsolidated basis pursuant to the equity method as of December 31, 2013. | ||||||||||||
As of December 31, 2014, aggregate principal amounts due on mortgage notes payable by unconsolidated LLCs, which are accounted for under the equity method and are non-recourse to us, are as follows (amounts in thousands): | |||||||||||||
2015 | $ | 23,832 | |||||||||||
2016 | 530 | ||||||||||||
2017 | 5,727 | ||||||||||||
2018 | 445 | ||||||||||||
2019 | 466 | ||||||||||||
2020 and After | 21,728 | ||||||||||||
Total | $ | 52,728 | |||||||||||
Name of LLC | Mortgage | Maturity Date | |||||||||||
Loan | |||||||||||||
Balance (a.) | |||||||||||||
Arlington Medical Properties (b.) | 23,287 | October, 2015 | |||||||||||
FTX MOB Phase II (c.) | 5,548 | August, 2017 | |||||||||||
Grayson Properties (d.) | 14,893 | September, 2021 | |||||||||||
Brunswick Associates (e.) | 9,000 | December, 2024 | |||||||||||
$ | 52,728 | ||||||||||||
(a.) | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. | ||||||||||||
(b.) | We believe the terms of this loan are within current market underwriting criteria. At this time, we expect to refinance this loan during 2015 for three to ten year terms at the then current market interest rates. In the unexpected event that we are unable to refinance this loan on reasonable terms, we will explore other financing alternatives, including, among other things, increasing our equity investment in the property utilizing funds borrowed under our revolving credit agreement. | ||||||||||||
(c.) | This loan was converted from a construction loan to a term loan in August, 2014, pursuant to the terms of the loan agreement. | ||||||||||||
(d.) | This loan was refinanced in September, 2014, for a seven year term, at a fixed rate of 5.034%. This loan includes two one-year extension options. | ||||||||||||
(e.) | This loan was refinanced in December, 2014, for a ten year term, at a fixed rate of 1.50% for the initial six months, and fixed rate of 3.64% commencing July 1, 2015 through December 31, 2024. | ||||||||||||
Pursuant to the operating and/or partnership agreements of most of the five LLCs in which we continue to hold non-controlling majority ownership interests, the third-party member and the Trust, at any time, have the right to make an offer (“Offering Member”) to the other member(s) (“Non-Offering Member”) in which it either agrees to: (i) sell the entire ownership interest of the Offering Member to the Non-Offering Member (“Offer to Sell”) at a price as determined by the Offering Member (“Transfer Price”), or; (ii) purchase the entire ownership interest of the Non-Offering Member (“Offer to Purchase”) at the equivalent proportionate Transfer Price. The Non-Offering Member has 60 to 90 days to either: (i) purchase the entire ownership interest of the Offering Member at the Transfer Price, or; (ii) sell its entire ownership interest to the Offering Member at the equivalent proportionate Transfer Price. The closing of the transfer must occur within 60 to 90 days of the acceptance by the Non-Offering Member |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||
Dec. 31, 2014 | |||
Segment Reporting | -9 | SEGMENT REPORTING | |
Our primary business is investing in and leasing healthcare and human service facilities through direct ownership or through joint ventures, which aggregate into a single reportable segment. We actively manage our portfolio of healthcare and human service facilities and may from time to time make decisions to sell lower performing properties not meeting our long-term investment objectives. The proceeds of sales are typically reinvested in new developments or acquisitions, which we believe will meet our planned rate of return. It is our intent that all healthcare and human service facilities will be owned or developed for investment purposes. Our revenue and net income are generated from the operation of our investment portfolio. | |||
Our portfolio is located throughout the United States, however, we do not distinguish or group our operations on a geographical basis for purposes of allocating resources or measuring performance. We review operating and financial data for each property on an individual basis; therefore, we define an operating segment as our individual properties. Individual properties have been aggregated into one reportable segment based upon their similarities with regard to both the nature and economics of the facilities, tenants and operational processes, as well as long-term average financial performance. |
Quarterly_Results
Quarterly Results | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Results | -10 | QUARTERLY RESULTS (unaudited) | |||||||||||||||||||
2014 (a.) | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(amounts in thousands, except per share amounts) | |||||||||||||||||||||
Revenues | $ | 14,288 | $ | 14,317 | $ | 15,258 | $ | 15,923 | $ | 59,786 | |||||||||||
Net income before gains | $ | 3,458 | $ | 3,408 | $ | 3,048 | $ | 3,185 | $ | 13,099 | |||||||||||
Gain on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 316 | — | 25,093 | — | 25,409 | ||||||||||||||||
Gain on divestiture of real property | — | — | — | 13,043 | 13,043 | ||||||||||||||||
Net income | $ | 3,774 | $ | 3,408 | $ | 28,141 | $ | 16,228 | $ | 51,551 | |||||||||||
Total basic earnings per share | $ | 0.29 | $ | 0.26 | $ | 2.18 | $ | 1.24 | $ | 3.99 | |||||||||||
Total diluted earnings per share | $ | 0.29 | $ | 0.26 | $ | 2.18 | $ | 1.24 | $ | 3.99 | |||||||||||
(a.) | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | ||||||||||||||||||||
2013 (a.) | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(amounts in thousands, except per share amounts) | |||||||||||||||||||||
Revenues | $ | 13,885 | $ | 13,502 | $ | 13,448 | $ | 13,445 | $ | 54,280 | |||||||||||
Net income | $ | 3,427 | $ | 2,941 | $ | 3,303 | $ | 3,498 | $ | 13,169 | |||||||||||
Total basic earnings per share | $ | 0.27 | $ | 0.23 | $ | 0.26 | $ | 0.27 | $ | 1.04 | |||||||||||
Total diluted earnings per share | $ | 0.27 | $ | 0.23 | $ | 0.26 | $ | 0.27 | $ | 1.04 | |||||||||||
(a.) | We began reflecting the operating results for Palmdale Medical Plaza on an unconsolidated basis pursuant to the equity method as of July 1, 2013. Prior to July 1, 2013, the financial results of this entity were recorded on a consolidated basis. The revenues for the first and second quarters of 2013, as reflected above, include the revenue for Palmdale Medical Plaza. There was no material impact to our net income as a result of the deconsolidation of this property. |
Real_Estate_and_Accumulated_De
Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Accumulated Depreciation | Schedule III | ||||||||||||||||||||||||||||||||||||||||||||||||
Universal Health Realty Income Trust | |||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Accumulated Depreciation — December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Description | Initial Cost | Gross amount at | Accumulated | Date of | Date | Average | |||||||||||||||||||||||||||||||||||||||||||
which carried | Depreciation | Completion of | Acquired | Depreciable | |||||||||||||||||||||||||||||||||||||||||||||
at end of period | as of Dec. 31, | Construction, | Life | ||||||||||||||||||||||||||||||||||||||||||||||
2014 | Acquisition | ||||||||||||||||||||||||||||||||||||||||||||||||
or Significant | |||||||||||||||||||||||||||||||||||||||||||||||||
Encumbrance | Land | Building | Adjustments | Land | Building & | CIP | Total | improvement | |||||||||||||||||||||||||||||||||||||||||
(e.) | & | to Basis (a.) | Improvements | ||||||||||||||||||||||||||||||||||||||||||||||
Improv. | |||||||||||||||||||||||||||||||||||||||||||||||||
Inland Valley Regional Medical Center | — | $ | 2,050 | $ | 10,701 | $ | 14,596 | $ | 2,050 | $ | 25,297 | $ | 27,347 | $ | 11,175 | 2007 | 1986 | 43 Years | |||||||||||||||||||||||||||||||
Wildomar, California | |||||||||||||||||||||||||||||||||||||||||||||||||
McAllen Medical Center | — | 4,720 | 31,442 | 10,189 | 6,281 | 40,070 | 46,351 | 24,385 | 1994 | 1986 | 42 Years | ||||||||||||||||||||||||||||||||||||||
McAllen, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||
Wellington Regional Medical Center | — | 1,190 | 14,652 | 17,370 | 1,663 | 31,549 | 33,212 | 16,258 | 2006 | 1986 | 42 Years | ||||||||||||||||||||||||||||||||||||||
West Palm Beach, Florida | |||||||||||||||||||||||||||||||||||||||||||||||||
HealthSouth Deaconess Rehabilitation Hospital Evansville, Indiana | — | 500 | 6,945 | 1,062 | 500 | 8,007 | 8,507 | 5,069 | 1993 | 1989 | 40 Years | ||||||||||||||||||||||||||||||||||||||
Kindred Hospital Chicago | — | 158 | 6,404 | 1,838 | 158 | 8,242 | 8,400 | 8,242 | 1993 | 1986 | 25 Years | ||||||||||||||||||||||||||||||||||||||
Central Chicago, Illinois | |||||||||||||||||||||||||||||||||||||||||||||||||
Family Doctor’s Medical Office Building | — | 54 | 1,526 | 494 | 54 | 2,020 | 2,074 | 902 | 1991 | 1995 | 45 Years | ||||||||||||||||||||||||||||||||||||||
Shreveport, Louisiana | |||||||||||||||||||||||||||||||||||||||||||||||||
Kelsey-Seybold Clinic at King’s Crossing | — | 439 | 1,618 | 870 | 439 | 2,488 | 2,927 | 1,091 | 1995 | 1995 | 45 Years | ||||||||||||||||||||||||||||||||||||||
Professional Buildings at King’s Crossing | — | 439 | 1,837 | 185 | 439 | 2,022 | 3 | 2,464 | 889 | 1995 | 1995 | 45 Years | |||||||||||||||||||||||||||||||||||||
Kingwood, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||
Chesterbrook Academy | — | 307 | 996 | — | 307 | 996 | 1,303 | 413 | 1996 | 1996 | 45 Years | ||||||||||||||||||||||||||||||||||||||
Audubon, Pennsylvania | |||||||||||||||||||||||||||||||||||||||||||||||||
Chesterbrook Academy | — | 250 | 744 | — | 250 | 744 | 994 | 309 | 1991 | 1996 | 45 Years | ||||||||||||||||||||||||||||||||||||||
New Britain, Pennsylvania | |||||||||||||||||||||||||||||||||||||||||||||||||
Chesterbrook Academy | — | 180 | 815 | — | 180 | 815 | 995 | 338 | 1992 | 1996 | 45 Years | ||||||||||||||||||||||||||||||||||||||
Uwchlan, Pennsylvania | |||||||||||||||||||||||||||||||||||||||||||||||||
Chesterbrook Academy | — | 195 | 749 | — | 195 | 749 | 944 | 311 | 1992 | 1996 | 45 Years | ||||||||||||||||||||||||||||||||||||||
Newtown, Pennsylvania | |||||||||||||||||||||||||||||||||||||||||||||||||
The Southern Crescent Center I (b.) | — | 1,130 | 5,092 | (2,271 | ) | 1,130 | 2,821 | 3,951 | 2,269 | 1994 | 1996 | 45 Years | |||||||||||||||||||||||||||||||||||||
The Southern Crescent Center II (b.) | — | — | — | 5,015 | 806 | 4,209 | 5,015 | 1,943 | 2000 | 1998 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Riverdale, Georgia | |||||||||||||||||||||||||||||||||||||||||||||||||
The Cypresswood Professional Center | — | 573 | 3,842 | 585 | 573 | 4,427 | 53 | 5,053 | 2,398 | 1997 | 1997 | 35 Years | |||||||||||||||||||||||||||||||||||||
Spring, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||
701 South Tonopah Building | — | — | 1,579 | 68 | — | 1,647 | 1,647 | 931 | 1999 | 1999 | 25 Years | ||||||||||||||||||||||||||||||||||||||
Las Vegas, Nevada | |||||||||||||||||||||||||||||||||||||||||||||||||
Sheffield Medical Building (c.) | — | 1,760 | 9,766 | (7,327 | ) | 736 | 3,463 | 1 | 4,200 | 1,348 | 1999 | 1999 | 25 Years | ||||||||||||||||||||||||||||||||||||
Atlanta, Georgia | |||||||||||||||||||||||||||||||||||||||||||||||||
Medical Center of Western Connecticut | 4,785 | 1,151 | 5,176 | 544 | 1,151 | 5,720 | 6,871 | 2,899 | 2000 | 2000 | 30 Years | ||||||||||||||||||||||||||||||||||||||
Danbury, Connecticut | |||||||||||||||||||||||||||||||||||||||||||||||||
Vibra Hospital of Corpus Christi | 2,902 | 1,104 | 5,508 | — | 1,104 | 5,508 | 6,612 | 1085 | 2008 | 2008 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Corpus Christi, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||
Apache Junction Medical Plaza (d.) | — | 240 | 3,590 | 621 | 240 | 4,211 | 1 | 4,452 | 479 | 2004 | 2004 | 30 Years | |||||||||||||||||||||||||||||||||||||
Apache Junction, AZ | |||||||||||||||||||||||||||||||||||||||||||||||||
Auburn Medical Office Building II (d.) | 7,183 | — | 10,200 | 176 | — | 10,376 | 10,376 | 1,034 | 2009 | 2009 | 36 Years | ||||||||||||||||||||||||||||||||||||||
Auburn, WA | |||||||||||||||||||||||||||||||||||||||||||||||||
BRB Medical Office Building (d.) | 6,673 | 430 | 8,970 | 24 | 430 | 8,994 | 4 | 9,428 | 885 | 2010 | 2010 | 37 Years | |||||||||||||||||||||||||||||||||||||
Kingwood, Texas | |||||||||||||||||||||||||||||||||||||||||||||||||
Centennial Hills Medical Office Building (d.) | 10,642 | — | 19,890 | 804 | — | 20,694 | 116 | 20,810 | 2,154 | 2006 | 2006 | 34 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Desert Springs Medical Plaza (d.) | — | 1,200 | 9,560 | 443 | 1,200 | 10,003 | 144 | 11,347 | 1,212 | 1998 | 1998 | 30 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
700 Shadow Lane & Goldring MOBs (d.) | 6,601 | 400 | 11,300 | 1,141 | 400 | 12,441 | 155 | 12,996 | 1,430 | 2003 | 2003 | 30 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Spring Valley Hospital MOB I (d.) | 4,920 | — | 9,500 | 338 | — | 9,838 | 36 | 9,874 | 1,029 | 2004 | 2004 | 35 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Spring Valley Hospital MOB II (d.) | — | — | 9,800 | 8 | — | 9,808 | 202 | 10,010 | 1,031 | 2006 | 2006 | 34 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Summerlin Hospital MOB I (d.) | — | 460 | 15,440 | 512 | 460 | 15,952 | 43 | 16,455 | 1,889 | 1999 | 1999 | 30 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Summerlin Hospital MOB II (d.) | 11,729 | 370 | 16,830 | 851 | 370 | 17,681 | 43 | 18,094 | 2,040 | 2000 | 2000 | 30 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Summerlin Hospital MOB III (d.) | 11,025 | — | 14,900 | 1,459 | — | 16,359 | 32 | 16,391 | 1,581 | 2009 | 2009 | 36 Years | |||||||||||||||||||||||||||||||||||||
Las Vegas, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
Emory at Dunwoody Building | — | 782 | 3,455 | — | 782 | 3,455 | 4,237 | 395 | 2011 | 2011 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Dunwoody, GA | |||||||||||||||||||||||||||||||||||||||||||||||||
Forney Medical Plaza Forney, TX | — | 910 | 11,960 | 31 | 910 | 11,991 | 12,901 | 1,621 | 2011 | 2011 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Lake Pointe Medical Arts Building | — | 1,100 | 9,000 | 31 | 1,100 | 9,031 | 10,131 | 1,077 | 2011 | 2011 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Rowlett, TX | |||||||||||||||||||||||||||||||||||||||||||||||||
Tuscan Professional Building | 5,862 | 1,100 | 12,525 | 73 | 1,100 | 12,598 | 13,698 | 1,299 | 2011 | 2011 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Irving, TX | |||||||||||||||||||||||||||||||||||||||||||||||||
Peace Health Medical Clinic | 21,248 | 1,900 | 24,910 | — | 1,900 | 24,910 | 26,810 | 2,554 | 2012 | 2012 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Bellingham, WA | |||||||||||||||||||||||||||||||||||||||||||||||||
Northwest Texas Professional Office Tower | — | — | 7,180 | — | — | 7,180 | 7,180 | 485 | 2012 | 2012 | 35 Years | ||||||||||||||||||||||||||||||||||||||
Amarillo, TX | |||||||||||||||||||||||||||||||||||||||||||||||||
Ward Eagle Office Village Farmington Hills, MI | — | $ | 220 | 3,220 | — | 220 | 3,220 | 3,440 | 165 | 2013 | 2013 | 35 Years | |||||||||||||||||||||||||||||||||||||
5004 Poole Road MOB Denison, TX | — | $ | 96 | 529 | — | 96 | 529 | 625 | 28 | 2013 | 2013 | 35 Years | |||||||||||||||||||||||||||||||||||||
Desert Valley Medical Center (f.) | 3,861 | $ | 2,280 | 4,624 | — | 2,280 | 4,624 | 26 | 6,930 | 74 | 1996 | 1996 | 30 Years | ||||||||||||||||||||||||||||||||||||
Phoenix, AZ | |||||||||||||||||||||||||||||||||||||||||||||||||
Hanover Emergency Center | — | $ | 1,300 | 6,224 | — | 1,300 | 6,224 | 7,524 | 72 | 2014 | 2014 | 35 Years | |||||||||||||||||||||||||||||||||||||
Mechanicsville, VA | |||||||||||||||||||||||||||||||||||||||||||||||||
North Valley Medical Plaza (f.) | — | $ | 930 | 6,929 | — | 930 | 6,929 | 7,859 | 111 | 2010 | 2010 | 30 Years | |||||||||||||||||||||||||||||||||||||
Phoenix, AZ | |||||||||||||||||||||||||||||||||||||||||||||||||
Northwest Medical Center at Sugar Creek | — | $ | 1,100 | 2,870 | — | 1,100 | 2,870 | 3,970 | 78 | 2014 | 2014 | 35 Years | |||||||||||||||||||||||||||||||||||||
Bentonville, AR | |||||||||||||||||||||||||||||||||||||||||||||||||
The Children’s Clinic at Springdale | — | $ | 610 | 1,570 | — | 610 | 1,570 | 2,180 | 66 | 2014 | 2014 | 35 Years | |||||||||||||||||||||||||||||||||||||
Springdale, AR | |||||||||||||||||||||||||||||||||||||||||||||||||
Rosenberg Children’s Medical Plaza (f.) | 8,479 | $ | 0 | 23,302 | — | 0 | 23,302 | 23,302 | 327 | 2001 | 2001 | 35 Years | |||||||||||||||||||||||||||||||||||||
Phoenix, AZ | |||||||||||||||||||||||||||||||||||||||||||||||||
Phoenix Children’s East Valley Care Center (f.) Phoenix, AZ | 6,485 | $ | 1,050 | 10,900 | — | 1,050 | 10,900 | 11,950 | 152 | 2006 | 2006 | 35 Years | |||||||||||||||||||||||||||||||||||||
Palmdale Medical Plaza (f.) | 6,008 | $ | 0 | 10,555 | — | 0 | 10,555 | 48 | 10,603 | 372 | 2008 | 2008 | 33.5 | ||||||||||||||||||||||||||||||||||||
Palmdale, CA | Years | ||||||||||||||||||||||||||||||||||||||||||||||||
Santa Fe Professional Plaza (f.) | — | $ | 1,090 | 1,960 | — | 1,090 | 1,960 | 109 | 3,159 | 31 | 1999 | 1999 | 30 Years | ||||||||||||||||||||||||||||||||||||
Scottsdale, AZ | |||||||||||||||||||||||||||||||||||||||||||||||||
Sierra San Antonio Medical Plaza (f.) Fontana, CA | — | $ | 0 | 11,538 | — | 0 | 11,538 | 11,538 | 184 | 2006 | 2006 | 30 Years | |||||||||||||||||||||||||||||||||||||
Vista Medical Terrace & Sparks MOB (f.) | 4,479 | $ | 0 | 9,276 | — | 0 | 9,276 | 176 | 9,452 | 370 | 2008 | 2008 | 30 Years | ||||||||||||||||||||||||||||||||||||
Sparks, NV | |||||||||||||||||||||||||||||||||||||||||||||||||
TOTALS | $ | 122,882 | $ | 33,768 | $ | 401,899 | $ | 49,730 | $ | 35,584 | $ | 449,813 | $ | 1,192 | $ | 486,589 | $ | 106,480 | |||||||||||||||||||||||||||||||
a.. | Costs capitalized/divested subsequent to acquisition. | ||||||||||||||||||||||||||||||||||||||||||||||||
b. | During 2008, a $4.6 million provision for asset impairment was recorded in connection with the real estate assets of Southern Crescent Center I & Southern Crescent Center II. | ||||||||||||||||||||||||||||||||||||||||||||||||
c. | During 2011, a $5.4 million provision for asset impairment was recorded in connection with the real estate assets of Sheffield Medical Building. | ||||||||||||||||||||||||||||||||||||||||||||||||
d. | During 2011, we purchased the third-party minority interests in these properties in which we previously held noncontrolling majority owned interests. Since that time, these properties are wholly-owned. | ||||||||||||||||||||||||||||||||||||||||||||||||
e. | Consists of outstanding balances as of December 31, 2014 on third-party debt that is non-recourse to us. | ||||||||||||||||||||||||||||||||||||||||||||||||
f. | During 2014, we purchased the third-party minority interests in these properties in which we previously held noncontrolling majority owned interests. Since that time, these properties are wholly-owned. | ||||||||||||||||||||||||||||||||||||||||||||||||
UNIVERSAL HEALTH REALTY INCOME TRUST | |||||||||||||||||||||||||||||||||||||||||||||||||
NOTES TO SCHEDULE III | |||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
-1 | RECONCILIATION OF REAL ESTATE PROPERTIES | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table reconciles the Real Estate Properties from January 1, 2012 to December 31, 2014: | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 395,669 | $ | 401,474 | $ | 363,498 | |||||||||||||||||||||||||||||||||||||||||||
Impact of deconsolidation of an LLC(a.) | — | (13,185 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Impact of consolidation of eight LLCs(b.) | 84,064 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Property additions | 3,298 | 3,415 | 3,985 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | 13,674 | 4,065 | 33,991 | ||||||||||||||||||||||||||||||||||||||||||||||
Disposals | (10,116 | ) | (100 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 486,589 | $ | 395,669 | $ | 401,474 | |||||||||||||||||||||||||||||||||||||||||||
-2 | RECONCILIATION OF ACCUMULATED DEPRECIATION | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table reconciles the Accumulated Depreciation from January 1, 2012 to December 31, 2014: | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | 97,921 | $ | 87,088 | $ | 74,865 | |||||||||||||||||||||||||||||||||||||||||||
Impact of deconsolidation of an LLC(a.) | — | (1,588 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Disposals | (5,859 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Current year depreciation expense | 14,413 | 12,464 | 12,223 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 5 | (43 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | 106,480 | $ | 97,921 | $ | 87,088 | |||||||||||||||||||||||||||||||||||||||||||
(a.) | The master lease with a wholly-owned subsidiary of UHS related to Palmdale Medical Properties expired effective as of July 1, 2013 and, as of that date, we began accounting for Palmdale Medical Properties on an unconsolidated basis under the equity method. | ||||||||||||||||||||||||||||||||||||||||||||||||
(b.) | During 2014, the Trust purchased the minority ownership interests held by third-party members in eight LLCs (January and August, 2014) in which we previously held noncontrolling majority ownership interests. As a result of these minority ownership purchases, the Trust and our subsidiaries now own 100% of each of these LLCs and the financial results are included in our consolidated financial statements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Nature of Operations | Nature of Operations | |||
Universal Health Realty Income Trust and subsidiaries (the “Trust”) is organized as a Maryland real estate investment trust. We invest in healthcare and human service related facilities currently including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings. As of February 28, 2015, we have sixty-one real estate investments or commitments located in eighteen states consisting of: | ||||
• | six hospital facilities including three acute care, one rehabilitation and two sub-acute; | |||
• | three free-standing emergency departments; | |||
• | forty-eight medical office buildings, including five owned by unconsolidated limited liability companies (“LLCs”), and; | |||
• | four preschool and childcare centers. | |||
Our future results of operations could be unfavorably impacted by deterioration in general economic conditions which could result in increases in the number of people unemployed and/or uninsured. Should that occur, it may result in decreased occupancy rates at our medical office buildings as well as a reduction in the revenues earned by the operators of our hospital facilities which would unfavorably impact our future bonus rentals (on the three Universal Health Services, Inc. hospital facilities) and may potentially have a negative impact on the future lease renewal terms and the underlying value of the hospital properties. Additionally, the general real estate market has been unfavorably impacted by the deterioration in economic and credit market conditions which may adversely impact the underlying value of our properties. The tightening in the credit markets and the instability in certain banking and financial institutions over the past several years has not had a material impact on us. However, there can be no assurance that unfavorable credit market conditions will not materially increase our cost of borrowings and/or have a material adverse impact on our ability to finance our future growth through borrowed funds. | ||||
Management is unable to predict the effect, if any, that the factors discussed above will have on the operating results of our lessees or on their ability to meet their obligations under the terms of their leases with us. Management’s estimate of future cash flows from our leased properties could be materially affected in the near term, if certain of the leases are not renewed or renewed with less favorable terms at the end of their lease terms. | ||||
Revenue Recognition | Revenue Recognition | |||
Our revenues consist primarily of rentals received from tenants, which are comprised of minimum rent (base rentals), bonus rentals and reimbursements from tenants for their pro-rata share of expenses such as common area maintenance costs, real estate taxes and utilities. | ||||
The minimum rent for all hospital facilities is fixed over the initial term or renewal term of the respective leases. Rental income recorded by our properties, including our consolidated and unconsolidated MOBs, relating to leases in excess of one year in length, is recognized using the straight-line method under which contractual rents are recognized evenly over the lease term regardless of when payments are due. The amount of rental revenue resulting from straight-line rent adjustments is dependent on many factors including the nature and amount of any rental concessions granted to new tenants, stipulated rent increases under existing leases, as well as the acquisitions and sales of properties that have existing in-place leases with terms in excess of one year. As a result, the straight-line adjustments to rental revenue may vary from period-to-period. Bonus rents are recognized when earned based upon increases in each facility’s net revenue in excess of stipulated amounts. Bonus rentals are determined and paid each quarter based upon a computation that compares the respective facility’s current quarter’s net revenue to the corresponding quarter in the base year. Tenant reimbursements for operating expenses are accrued as revenue in the same period the related expenses are incurred. | ||||
Real Estate Investments | Real Estate Investments | |||
On the date of acquisition, the purchase price of a property is allocated to the property’s land, buildings and intangible assets based upon our estimates of their fair values. Intangible assets include the value of in-place leases, above market leases and leasehold interest in land at the time of acquisition. Substantially all of our intangible assets consist of the value of in-place leases at December 31, 2014, and will be amortized over the remaining lease terms (aggregate weighted average of 4.4 years at December 31, 2014) and is expected to result in estimated aggregate amortization expense of $5.6 million, $4.5 million, $3.9 million $2.5 million and $1.9 million for 2015, 2016, 2017, 2018 and 2019, respectively. Amortization expense on intangible values of in place leases was $6.1 million for the year ended December 31, 2014, $6.0 million for the year ended December 31, 2013 and $7.8 million for the year ended December 31, 2012. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and capital improvements. The estimated original useful lives of our buildings ranges from 25-45 years and the estimated original useful lives of capital improvements ranges from 3-35 years. On a consolidated basis, depreciation expense was $14.4 million for the year ended December 31, 2014, $12.5 million for the year ended December 31, 2013 and $12.2 million for the year ended December 31, 2012. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
We consider all highly liquid investment instruments with original maturities of three months or less to be cash equivalents. | ||||
Asset Impairment | Asset Impairment | |||
Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable. A property to be held and used is considered impaired only if management’s estimate of the aggregate future cash flows, less estimated capital expenditures, to be generated by the property, undiscounted and without interest charges, are less than the carrying value of the property. This estimate takes into consideration factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition, local market conditions and other factors. | ||||
The determination of undiscounted cash flows requires significant estimates by management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in anticipated action to be taken with respect to the property could impact the determination of whether an impairment exists and whether the effects could materially impact our net income. To the extent estimated undiscounted cash flows are less than the carrying value of the property, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property. | ||||
Assessment of the recoverability by us of certain lease related costs must be made when we have reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs. If we determine that the intangible assets are not recoverable from future cash flows, the excess of carrying value of the intangible asset over its estimated fair value is charged to income. | ||||
An other than temporary impairment of an investment/advance in an LLC is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value, including projected declines in cash flow. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is charged to income. | ||||
Investments in Limited Liability Companies ("LLCs") | Investments in Limited Liability Companies (“LLCs”) | |||
Our consolidated financial statements include the consolidated accounts of our controlled investments and those investments that meet the criteria of a variable interest entity where we are the primary beneficiary. In accordance with the FASB’s standards and guidance relating to accounting for investments and real estate ventures, we account for our unconsolidated investments in LLCs which we do not control using the equity method of accounting. The third-party members in these investments have equal voting rights with regards to issues such as, but not limited to: (i) divestiture of property; (ii) annual budget approval, and; (iii) financing commitments. These investments, which represent 33% to 95% non-controlling ownership interests, are recorded initially at our cost and subsequently adjusted for our net equity in the net income, cash contributions to, and distributions from, the investments. Pursuant to certain agreements, allocations of sales proceeds and profits and losses of some of the LLC investments may be allocated disproportionately as compared to ownership interests after specified preferred return rate thresholds have been satisfied. | ||||
At December 31, 2014, we have non-controlling equity investments or commitments in five jointly-owned LLCs which own medical office buildings. These LLCs are included in our financial statements for all periods presented on an unconsolidated basis pursuant to the equity method since they are not variable interest entities for which we are the primary beneficiary, nor do we hold a controlling voting interest. These LLCs are joint-ventures between us and non-related parties that manage and hold minority ownership interests in the entities. Each LLC is generally self-sustained from a cash flow perspective and generates sufficient cash flow to meet its operating cash flow requirements and service the third-party debt (if applicable) that is non-recourse to us. Although there is typically no ongoing financial support required from us to these entities since they are cash-flow sufficient, we may, from time to time, provide funding for certain purposes such as, but not limited to, significant capital expenditures, leasehold improvements and debt financing. Although we are not obligated to do so, if approved by us at our sole discretion, additional cash fundings are typically advanced as equity or member loans. | ||||
Palmdale Medical Properties was consolidated in our financial statements through June 30, 2013 at which time its master lease with a wholly-owned subsidiary of UHS expired. For the period of July 1, 2013 through December 31, 2013, we accounted for Palmdale Medical Properties under the equity method. As discussed below, as a result of our purchase of the third-party minority ownership interest in Palmdale Medical Properties, effective January 1, 2014, we began accounting for Palmdale Medical Properties on a consolidated basis. | ||||
Effective August 1, 2014, we purchased the third-party minority ownership interests, ranging from 5% to 15%, in six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza). Effective January 1, 2014, we purchased the third-party minority ownership interests (5% for each LLC) in Palmdale Medical Properties and Sparks Medical Properties. We formerly held non-controlling majority ownership interests in all of these LLCs, and as a result of our purchase of the minority ownership interests, we now hold 100% of the ownership interests in these LLCs which own MOBs. As a result, we began accounting for the six LLCs mentioned above on a consolidated basis effective August 1, 2014 and we began accounting for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014, as discussed below. Each of the property’s assets and liabilities were recorded at their fair values (see Note 3 to the consolidated financial statements for additional disclosure). Other than an increase in depreciation and amortization expense resulting from the fair value recognition related to the purchase of the minority ownership interests, we do not expect these transactions to have a material impact on our future results of operations. | ||||
Federal Income Taxes | Federal Income Taxes | |||
No provision has been made for federal income tax purposes since we qualify as a real estate investment trust under Sections 856 to 860 of the Internal Revenue Code of 1986, and intend to continue to remain so qualified. As such, we are exempt from federal income taxes and we are required to distribute at least 90% of our real estate investment taxable income to our shareholders. | ||||
We are subject to a federal excise tax computed on a calendar year basis. The excise tax equals 4% of the amount by which 85% of our ordinary income plus 95% of any capital gain income for the calendar year exceeds cash distributions during the calendar year, as defined. No provision for excise tax has been reflected in the financial statements as no tax was due. | ||||
Earnings and profits, which determine the taxability of dividends to shareholders, will differ from net income reported for financial reporting purposes due to the differences for federal tax purposes in the cost basis of assets and in the estimated useful lives used to compute depreciation and the recording of provision for impairment losses. | ||||
The aggregate gross cost basis and net book value of the properties for federal income tax purposes are approximately $469 million and $316 million, respectively, at December 31, 2014. | ||||
Stock-Based Compensation | Stock-Based Compensation | |||
We expense the grant-date fair value of restricted stock awards over the vesting period. We recognize the grant-date fair value of equity-based compensation and account for these transactions using the fair-value based method. | ||||
The expense associated with share-based compensation arrangements is a non-cash charge. In the Consolidated Statements of Cash Flows, share-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities. | ||||
Fair Value | Fair Value | |||
Fair value is a market-based measurement, not an entity-specific measurement and determined based upon the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Level 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). In instances when it is necessary to establish the fair value of our real estate investments and investments in LLCs we use unobservable inputs which are typically based on our own assumptions. | ||||
The fair value of our real estate investments, components of real estate investments and debt assumed in conjunction with acquisition and impairment activity, are considered to be Level 3 valuations as they are primarily based upon an income capitalization approach. Significant inputs into the models used to determine fair value of real estate investments and components of real estate investments include future cash flow projections, holding period, terminal capitalization rate and discount rates. Additionally the fair value of land takes into consideration comparable sales, as adjusted for site specific factors. The fair value of real estate investments is based upon significant judgments made by management, and accordingly, we typically obtain assistance from third party valuation specialists. Significant inputs into the models used to determine the fair value of assumed mortgages included the outstanding balance, term, stated interest rate and current market rate of the mortgage. | ||||
The carrying amounts reported in the balance sheet for cash, receivables, and short-term borrowings approximate their fair values due to the short-term nature of these instruments. Accordingly, these items are excluded from the fair value disclosures included elsewhere in these notes to the consolidated financial statements. | ||||
See Note 3-Acquisitions and Dispositions, for disclosure related to the $25.4 million net gain recorded during 2014 in connection with the fair value recognition of the assets and liabilities, including third-party debt, resulting from the purchase of minority ownership interests in majority-owned LLCs. | ||||
Use of Estimates | Use of Estimates | |||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
New Accounting Standards | New Accounting Standards | |||
Except as noted below, there were no new accounting pronouncements during 2014 that impacted, or are expected to impact us. | ||||
In August 2014, FASB issued ASU No. 2014-15, “Preparation of Financial Statements—Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU 2014-15). Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, “Presentation of Financial Statements—Liquidation Basis of Accounting”. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the new criteria in ASU 2014-15 should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We will evaluate the going concern considerations in this ASU. | ||||
In April 2014, the Financial Accounting Standards Board updated the accounting guidance related to the definition of a discontinued operation and the related disclosures. The updated accounting guidance defines a discontinued operation as a disposal of a component or a group of components that is to be disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. We adopted this updated guidance in 2014 and the adoption of this update did not have a material impact on our consolidated financial statements. |
Relationship_with_UHS_and_Rela1
Relationship with UHS and Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities | The table below details the existing lease terms and renewal options for each of the UHS hospital facilities: | ||||||||||||||
Hospital Name | Type of Facility | Annual | End of | Renewal | |||||||||||
Minimum | Lease Term | Term | |||||||||||||
Rent | (years) | ||||||||||||||
McAllen Medical Center | Acute Care | $ | 5,485,000 | December, 2016 | 15 | (a) | |||||||||
Wellington Regional Medical Center | Acute Care | $ | 3,030,000 | December, 2016 | 15 | (b) | |||||||||
Southwest Healthcare System, Inland Valley Campus | Acute Care | $ | 2,648,000 | December, 2016 | 15 | (b) | |||||||||
(a) | UHS has three 5-year renewal options at existing lease rates (through 2031). | ||||||||||||||
(b) | UHS has one 5-year renewal option at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Purchased Minority Ownership Interests | Additionally, during 2014, we spent an aggregate of $7.0 million, including $4.7 million in cash plus an additional $2.3 million in the form of a note payable to the previous third-party member (which was fully repaid in January, 2015 and is reflected in “Accrued expenses and other liabilities” on our Consolidated Balance Sheet at December 31, 2014) to purchase the minority ownership interests held by third party members in eight LLCs (as noted in the table below) in which we previously held various non-controlling majority ownership interests ranging from 85% to 95%. | ||||||||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | Effective Date | ||||||||||||||
prior to | |||||||||||||||||
minority | |||||||||||||||||
interest | |||||||||||||||||
purchase | |||||||||||||||||
Palmdale Medical Properties | 95 | % | Palmdale Medical Plaza | January 1, 2014 | |||||||||||||
Sparks Medical Properties… | 95 | % | Vista Medical Terrace & Sparks MOB | 1-Jan-14 | |||||||||||||
DVMC Properties | 90 | % | Desert Valley Medical Center | 1-Aug-14 | |||||||||||||
Santa Fe Scottsdale | 90 | % | Santa Fe Professional Plaza | 1-Aug-14 | |||||||||||||
PCH Medical Properties | 85 | % | Rosenberg Children’s Medical Plaza | 1-Aug-14 | |||||||||||||
Sierra Medical Properties | 95 | % | Sierra San Antonio Medical Plaza | 1-Aug-14 | |||||||||||||
PCH Southern Properties | 95 | % | Phoenix Children’s East Valley Care Center | 1-Aug-14 | |||||||||||||
3811 Bell Medical Properties | 95 | % | North Valley Medical Plaza | 1-Aug-14 | |||||||||||||
Unobservable Quantitative Inputs and Assumption used to Acquired Properties Categorized in Level Three | The following table summarizes significant unobservable quantitative inputs and assumptions used for the 2012 acquired properties categorized in Level 3 of the fair value hierarchy: | ||||||||||||||||
Assets | Fair Value at | Valuation Technique | Unobservable inputs | Range | |||||||||||||
December 31, 2012 | |||||||||||||||||
PeaceHealth Medical Clinic (a.)(b.) | $ | 30,400,000 | Income Capitalization Approach | Capitalization Rate | 7.5 | % | |||||||||||
Discount Rate | 8.5 | % | |||||||||||||||
Northwest Texas Professional Office Tower | $ | 9,600,000 | Income Capitalization Approach | Capitalization Rate | 8.6 | % | |||||||||||
Discount Rate | 9.5 | % | |||||||||||||||
(a.) | The fair value of the land was estimated based upon the sales comparison approach. | ||||||||||||||||
(b.) | Debt is recorded at its current estimated fair value based upon significant inputs including outstanding loan balance, term, stated interest rate and current market rate of the mortgage. | ||||||||||||||||
2014 Acquisitions | |||||||||||||||||
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The aggregate purchase price for these clinics and MOB was allocated to the assets and liabilities acquired consisting of tangible property and identified intangible assets, based on their respective fair values at acquisition as detailed in the table below. | ||||||||||||||||
Land | $ | 3,010 | |||||||||||||||
Buildings and improvements | 10,664 | ||||||||||||||||
Intangible assets | 2,076 | ||||||||||||||||
Deposit paid in 2013 | (150 | ) | |||||||||||||||
Net cash paid | $ | 15,600 | |||||||||||||||
2013 Acquisitions | |||||||||||||||||
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The aggregate purchase price of approximately $4.7 million for these MOBs was allocated to the assets and liabilities acquired consisting of tangible property and identifiable intangible assets, based on their respective fair values at acquisition, as detailed in the table below. | ||||||||||||||||
Land | $ | 316 | |||||||||||||||
Buildings and improvements | 3,749 | ||||||||||||||||
Intangible assets | 610 | ||||||||||||||||
Other assets | 21 | ||||||||||||||||
Liabilities (real property and operating) | (11 | ) | |||||||||||||||
Net cash paid | $ | 4,685 | |||||||||||||||
2012 Acquisitions | |||||||||||||||||
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The aggregate purchase price of $40.0 million for these MOBs was allocated to the assets and liabilities acquired consisting of tangible property and identified intangible assets, based on their respective fair values at acquisition, as detailed in the table below. | ||||||||||||||||
Land | $ | 1,900 | |||||||||||||||
Buildings and improvements | 32,090 | ||||||||||||||||
Intangible assets | 6,020 | ||||||||||||||||
Other assets | 799 | ||||||||||||||||
Liabilities (real property and operating) | (144 | ) | |||||||||||||||
Deposit paid in 2011 | (534 | ) | |||||||||||||||
Debt (including fair value adjustment of $799) | (23,240 | ) | |||||||||||||||
Net cash paid | $ | 16,891 | |||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Schedule of Minimum Future Base Rents from Non-Cancelable Leases | Minimum future base rents from non-cancelable leases related to properties included in our financial statements on a consolidated basis, excluding increases resulting from changes in the consumer price index, bonus rents and the impact of straight line rent, are as follows (amounts in thousands): | ||||
2015 | $ | 49,207 | |||
2016 | 46,051 | ||||
2017 | 30,330 | ||||
2018 | 25,799 | ||||
2019 | 21,127 | ||||
Thereafter | 57,916 | ||||
Total minimum base rents | $ | 230,430 | |||
Debt_and_Financial_Instruments1
Debt and Financial Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Required Compliance Ratios Giving Effect to New Covenants in Credit Agreement | The following table includes a summary of the required compliance ratios, giving effect to the covenants contained in the Credit Agreement (dollar amounts in thousands): | ||||||||||
Covenant | December 31, | ||||||||||
2014 | |||||||||||
Tangible net worth | $ | 125,000 | $ | 181,458 | |||||||
Debt to total capital | < 55 | % | 30 | % | |||||||
Debt service coverage ratio | > 3.00x | 25.4x | |||||||||
Debt to cash flow ratio | < 3.50x | 1.29x | |||||||||
Outstanding Mortgages, Excluding Net Debt Premium | The following table summarizes our outstanding mortgages at December 31, 2014 (amounts in thousands): | ||||||||||
Facility Name | Outstanding | Interest | Maturity | ||||||||
Balance | Rate | Date | |||||||||
(in thousands) (a) | |||||||||||
Spring Valley Medical Office Building fixed rate mortgage loan (b.) | $ | 4,920 | 5.5 | % | February, 2015 | ||||||
Desert Valley Medical Center floating rate mortgage loan (c.) | 3,861 | 3.41 | % | October, 2015 | |||||||
Palmdale Medical Plaza fixed rate mortgage loan (c.) | 6,008 | 3.69 | % | October, 2015 | |||||||
Summerlin Hospital Medical Office Building III floating rate mortgage loan | 11,025 | 3.41 | % | December, 2016 | |||||||
Peace Health fixed rate mortgage loan | 21,248 | 5.64 | % | April, 2017 | |||||||
Auburn Medical II floating rate mortgage loan | 7,183 | 2.9 | % | April, 2017 | |||||||
Medical Center of Western Connecticut fixed rate mortgage loan | 4,785 | 6 | % | June, 2017 | |||||||
Summerlin Hospital Medical Office Building II fixed rate mortgage loan | 11,729 | 5.5 | % | October, 2017 | |||||||
Phoenix Children’s East Valley Care Center fixed rate mortgage loan | 6,485 | 5.88 | % | December, 2017 | |||||||
Centennial Hills Medical Office Building floating rate mortgage loan | 10,642 | 3.41 | % | January, 2018 | |||||||
Sparks Medical Building/Vista Medical Terrace floating rate mortgage loan | 4,479 | 3.41 | % | February, 2018 | |||||||
Rosenberg Children’s Medical Plaza fixed rate mortgage loan | 8,479 | 4.85 | % | May, 2018 | |||||||
Vibra Hospital of Corpus Christi fixed rate mortgage loan | 2,902 | 6.5 | % | July, 2019 | |||||||
700 Shadow Lane and Goldring MOBs fixed rate mortgage loan | 6,601 | 4.54 | % | June, 2022 | |||||||
BRB Medical Office Building fixed rate mortgage loan | 6,673 | 4.27 | % | December, 2022 | |||||||
Tuscan Professional Building fixed rate mortgage loan | 5,862 | 5.56 | % | June, 2025 | |||||||
Total | $ | 122,882 | |||||||||
(a.) | Amortized principal payments are made on a monthly basis. | ||||||||||
(b.) | This loan was repaid in full on February 10, 2015, utilizing funds borrowed under our revolving credit facility. | ||||||||||
(c.) | We expect these loans, which have a maturity date in October, 2015, to be refinanced at the then current market interest rates or repaid utilizing funds borrowed under our revolving credit facility. | ||||||||||
Aggregate Consolidated Scheduled Debt Repayments | As of December 31, 2014, our aggregate consolidated scheduled debt repayments (including mortgages) are as follows (amounts in thousands): | ||||||||||
2015(a) | $ | 107,646 | |||||||||
2016 | 13,600 | ||||||||||
2017 | 50,399 | ||||||||||
2018 | 22,658 | ||||||||||
2019 | 3,463 | ||||||||||
Later | 14,866 | ||||||||||
Total | $ | 212,632 | |||||||||
(a) | Includes repayment of $89.8 million of outstanding borrowings under the terms of our $150 million revolving credit agreement. |
Incentive_Plans_Tables
Incentive Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Options Before Adjustment to Option Price to Give Effect to Dilutive Equivalent Rights | Information with respect to these options, before adjustment to the option price to give effect to the dividend equivalent rights, is summarized as follows: | ||||||||||||
Outstanding Options | Number | Exercise | Grant Price Range | ||||||||||
of Shares | Weighted- | (High-Low) | |||||||||||
Average Price | |||||||||||||
Balance, January 1, 2012 | 51,000 | $ | 33.89 | $ | 36.53/$26.09 | ||||||||
Exercised | (8,000 | ) | 26.76 | $ | 27.65/$26.09 | ||||||||
Balance, January 1, 2013 | 43,000 | $ | 35.22 | $ | 36.53/$29.44 | ||||||||
Exercised | (3,000 | ) | 29.44 | $ | 29.44/$29.44 | ||||||||
Balance, January 1, 2014 | 40,000 | $ | 35.65 | $ | 36.53/$30.06 | ||||||||
Exercised | (4,000 | ) | 33.07 | $ | 30.06/$34.07 | ||||||||
Outstanding options vested and exercisable as of December 31, 2014 | 36,000 | $ | 35.94 | $ | 34.90/$36.53 | ||||||||
Information about Options Outstanding and Exercisable Options | The following table provides information about options outstanding and exercisable options at December 31, 2014: | ||||||||||||
Options | |||||||||||||
Outstanding | |||||||||||||
and Exercisable | |||||||||||||
Number | 36,000 | ||||||||||||
Weighted average exercise price | $ | 35.94 | |||||||||||
Aggregate intrinsic value | $ | 438,430 | |||||||||||
Weighted average remaining contractual life | 1.6 | ||||||||||||
Weighted Average Remaining Contractual Life and Weighted Average Exercise Price for Options Outstanding and to Options Exercisable | The weighted average remaining contractual life and weighted average exercise price for options outstanding and the weighted average exercise prices per share for exercisable options at December 31, 2014 were as follows: | ||||||||||||
Options Outstanding and | |||||||||||||
Exercisable | |||||||||||||
Exercise Price | Shares | Weighted | Weighted | ||||||||||
Average | Average | ||||||||||||
Exercise | Remaining | ||||||||||||
Price Per | Contractual | ||||||||||||
Share | Life (in | ||||||||||||
Years) | |||||||||||||
$34.90 -$34.90 | 13,000 | 34.9 | 0.7 | ||||||||||
$36.53 -$36.53 | 23,000 | 36.53 | 2.2 | ||||||||||
Total | 36,000 | $ | 35.94 | 1.6 | |||||||||
Summarized_Financial_Informati1
Summarized Financial Information of Equity Affiliates (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Limited Liability Companies Accounted for Under Equity Method | Prior to August 1, 2014, these LLCs were accounted for on an unconsolidated basis pursuant to the equity method. | ||||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | Effective Date | ||||||||||
prior to | |||||||||||||
minority | |||||||||||||
interest | |||||||||||||
purchase | |||||||||||||
Palmdale Medical Properties | 95 | % | Palmdale Medical Plaza | January 1, 2014 | |||||||||
Sparks Medical Properties | 95 | % | Vista Medical Terrace & Sparks MOB | 1-Jan-14 | |||||||||
DVMC Properties | 90 | % | Desert Valley Medical Center | 1-Aug-14 | |||||||||
Santa Fe Scottsdale | 90 | % | Santa Fe Professional Plaza | 1-Aug-14 | |||||||||
PCH Medical Properties | 85 | % | Rosenberg Children’s Medical Plaza | 1-Aug-14 | |||||||||
Sierra Medical Properties | 95 | % | Sierra San Antonio Medical Plaza | 1-Aug-14 | |||||||||
PCH Southern Properties | 95 | % | Phoenix Children’s East Valley Care Center | 1-Aug-14 | |||||||||
3811 Bell Medical Properties | 95 | % | North Valley Medical Plaza | 1-Aug-14 | |||||||||
The following property table represents the five LLCs in which we own a noncontrolling interest and were accounted for under the equity method as of December 31, 2014: | |||||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | |||||||||||
Suburban Properties | 33 | % | Suburban Medical Plaza II | ||||||||||
Brunswick Associates (a.) | 74 | % | Mid Coast Hospital MOB | ||||||||||
Arlington Medical Properties (b.) | 75 | % | Saint Mary’s Professional | ||||||||||
Office Building | |||||||||||||
Grayson Properties (c.) | 95 | % | Texoma Medical Plaza | ||||||||||
FTX MOB Phase II (d.) | 95 | % | Forney Medical Plaza II | ||||||||||
(a.) | This LLC has a third-party term loan of $9.0 million, which is non-recourse to us, outstanding as of December 31, 2014. | ||||||||||||
(b.) | We have funded $5.2 million in equity as of December 31, 2014 and are committed to invest an additional $1.1 million. This LLC has a third-party term loan of $23.3 million, which is non-recourse to us, outstanding as of December 31, 2014. | ||||||||||||
(c.) | We have funded $2.6 million in equity as of December 31, 2014, and are committed to fund an additional $400,000. This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LLC has a third-party term loan of $14.9 million, which is non-recourse to us, outstanding as of December 31, 2014 | ||||||||||||
(d.) | We have committed to invest up to $2.5 million in equity and debt financing, of which $1.4 million has been funded as of December 31, 2014. This LLC has a third-party term loan of $5.5 million, which is non-recourse to us, outstanding as of December 31, 2014. | ||||||||||||
Condensed Combined Statements of Income (Unaudited) for Limited Liability Companies Accounted for Under Equity Method | Below are the combined statements of income for the LLCs accounted for under the equity method at December 31, 2014, 2013 and 2012. The data for the year ended December 31, 2014 includes the financial results for the six above-mentioned LLCs in which we purchased the minority ownership interests in August, 2014 for the period of January through July of 2014 (during which they were accounted for under the equity method). The data for the year ended December 31, 2012 includes the prorated amounts, through the date of their divestitures, for two LLCs that were divested during the year (Canyon Healthcare Properties, 95% ownership interest, divested in February, 2012 and 575 Hardy Investors, 90% ownership interest, divested in October, 2012). | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2014(b.) | 2013(c.) | 2012(c.) (d.) | |||||||||||
(amounts in thousands) | |||||||||||||
Revenues | $ | 17,292 | $ | 21,001 | $ | 21,448 | |||||||
Operating expenses | 6,769 | 8,705 | 8,974 | ||||||||||
Depreciation and amortization | 2,968 | 4,039 | 4,140 | ||||||||||
Interest, net | 4,261 | 6,353 | 6,056 | ||||||||||
Net income before gains on divestitures | $ | 3,294 | $ | 1,904 | $ | 2,278 | |||||||
Our share of net income before gains on divestitures (a.) | $ | 2,428 | $ | 2,095 | $ | 2,365 | |||||||
Our share of gains on divestitures | $ | — | $ | — | $ | 8,520 | |||||||
(a.) | Our share of net income during 2014, 2013 and 2012, includes interest income earned by us on various advances made to LLCs of approximately $834,000, $1.9 million and $1.5 million, respectively. | ||||||||||||
(b.) | As mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. Prior to August 1, 2014, the financial results of these entities were accounted for under the equity method on an unconsolidated basis. The year ended December 31, 2014, include the financial results of the six mentioned LLCs for seven months ended July 31, 2014. | ||||||||||||
(c.) | As mentioned above, we began to account for Sparks Medical Properties on a consolidated basis as of January 1, 2014. Prior to January 1, 2014, the financial results of this entity were accounted for under the equity method on an unconsolidated basis. These amounts include the financial results for Sparks Medical Properties for the years ended December 31, 2013 and 2012. In addition, we purchased the minority ownership interests in six LLCs effective August 1, 2014 (as mentioned in (b.) above) and began to account for the LLCs a consolidated basis as of that date. These amounts include the financial results for these six LLCs for the years ended December 31, 2013 and 2012. As also mentioned above, we began to account for Palmdale Medical Properties on a consolidated basis as of January 1, 2014. Prior thereto, as a result of a master lease commitment with a wholly-owned subsidiary of UHS which expired effective as of July 1, 2013, the financial results of Palmdale Medical Properties was accounted for on a consolidated basis through the six-month period ended June 30, 2013 and then on an unconsolidated basis for the six-month period of July 1, 2013 through December 31, 2013. Therefore the financial results of this entity are reflected in the table above for the six-month period of July 1, 2013 through December 31, 2013. | ||||||||||||
(d.) | As mentioned above, during the first quarter of 2012 and the fourth quarter of 2012, two LLCs in which we previously owned various noncontrolling, majority ownership interests (Canyon Healthcare Properties and 575 Hardy Investors), completed divestitures of medical office buildings and related real property. Our share of the financial results of the divested entities were previously accounted for on an unconsolidated basis under the equity method. | ||||||||||||
Condensed Combined Balance Sheets (Unaudited) for LLCs Accounted for Under Equity Method | Below are the combined balance sheets for the LLCs that were accounted for under the equity method as of December 31, 2014 and 2013: | ||||||||||||
December 31, | |||||||||||||
2014(a.) | 2013(a.)(b.) | ||||||||||||
(amounts in thousands) | |||||||||||||
Net property, including CIP | $ | 62,450 | $ | 119,547 | |||||||||
Other assets | 7,367 | 9,479 | |||||||||||
Total assets | $ | 69,817 | $ | 129,026 | |||||||||
Liabilities | $ | 3,348 | $ | 5,336 | |||||||||
Mortgage notes payable, non-recourse to us | 52,728 | 80,112 | |||||||||||
Advances payable to us | — | 22,911 | |||||||||||
Equity | 13,741 | 20,667 | |||||||||||
Total liabilities and equity | $ | 69,817 | $ | 129,026 | |||||||||
Our share of equity and advances to LLCs | $ | 8,605 | $ | 39,201 | |||||||||
(a.) | The amounts presented include the balance sheet amounts for each of the five entities that are accounted for on an unconsolidated basis as of December 31, 2014. | ||||||||||||
(b.) | As mentioned above, we began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. As also mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. The amounts reflected for December 31, 2013, include the balance sheet amounts for each of these entities since they were accounted for on an unconsolidated basis pursuant to the equity method as of December 31, 2013. | ||||||||||||
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's Accounted Under Equity Method | As of December 31, 2014, aggregate principal amounts due on mortgage notes payable by unconsolidated LLCs, which are accounted for under the equity method and are non-recourse to us, are as follows (amounts in thousands): | ||||||||||||
2015 | $ | 23,832 | |||||||||||
2016 | 530 | ||||||||||||
2017 | 5,727 | ||||||||||||
2018 | 445 | ||||||||||||
2019 | 466 | ||||||||||||
2020 and After | 21,728 | ||||||||||||
Total | $ | 52,728 | |||||||||||
Name of LLC | Mortgage | Maturity Date | |||||||||||
Loan | |||||||||||||
Balance (a.) | |||||||||||||
Arlington Medical Properties (b.) | 23,287 | October, 2015 | |||||||||||
FTX MOB Phase II (c.) | 5,548 | August, 2017 | |||||||||||
Grayson Properties (d.) | 14,893 | September, 2021 | |||||||||||
Brunswick Associates (e.) | 9,000 | December, 2024 | |||||||||||
$ | 52,728 | ||||||||||||
(a.) | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. | ||||||||||||
(b.) | We believe the terms of this loan are within current market underwriting criteria. At this time, we expect to refinance this loan during 2015 for three to ten year terms at the then current market interest rates. In the unexpected event that we are unable to refinance this loan on reasonable terms, we will explore other financing alternatives, including, among other things, increasing our equity investment in the property utilizing funds borrowed under our revolving credit agreement. | ||||||||||||
(c.) | This loan was converted from a construction loan to a term loan in August, 2014, pursuant to the terms of the loan agreement. | ||||||||||||
(d.) | This loan was refinanced in September, 2014, for a seven year term, at a fixed rate of 5.034%. This loan includes two one-year extension options. | ||||||||||||
(e.) | This loan was refinanced in December, 2014, for a ten year term, at a fixed rate of 1.50% for the initial six months, and fixed rate of 3.64% commencing July 1, 2015 through December 31, 2024. |
Quarterly_Results_Tables
Quarterly Results (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Results for Operating Activities | |||||||||||||||||||||
2014 (a.) | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(amounts in thousands, except per share amounts) | |||||||||||||||||||||
Revenues | $ | 14,288 | $ | 14,317 | $ | 15,258 | $ | 15,923 | $ | 59,786 | |||||||||||
Net income before gains | $ | 3,458 | $ | 3,408 | $ | 3,048 | $ | 3,185 | $ | 13,099 | |||||||||||
Gain on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 316 | — | 25,093 | — | 25,409 | ||||||||||||||||
Gain on divestiture of real property | — | — | — | 13,043 | 13,043 | ||||||||||||||||
Net income | $ | 3,774 | $ | 3,408 | $ | 28,141 | $ | 16,228 | $ | 51,551 | |||||||||||
Total basic earnings per share | $ | 0.29 | $ | 0.26 | $ | 2.18 | $ | 1.24 | $ | 3.99 | |||||||||||
Total diluted earnings per share | $ | 0.29 | $ | 0.26 | $ | 2.18 | $ | 1.24 | $ | 3.99 | |||||||||||
(a.) | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children’s Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children’s East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | ||||||||||||||||||||
2013 (a.) | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(amounts in thousands, except per share amounts) | |||||||||||||||||||||
Revenues | $ | 13,885 | $ | 13,502 | $ | 13,448 | $ | 13,445 | $ | 54,280 | |||||||||||
Net income | $ | 3,427 | $ | 2,941 | $ | 3,303 | $ | 3,498 | $ | 13,169 | |||||||||||
Total basic earnings per share | $ | 0.27 | $ | 0.23 | $ | 0.26 | $ | 0.27 | $ | 1.04 | |||||||||||
Total diluted earnings per share | $ | 0.27 | $ | 0.23 | $ | 0.26 | $ | 0.27 | $ | 1.04 | |||||||||||
(a.) | We began reflecting the operating results for Palmdale Medical Plaza on an unconsolidated basis pursuant to the equity method as of July 1, 2013. Prior to July 1, 2013, the financial results of this entity were recorded on a consolidated basis. The revenues for the first and second quarters of 2013, as reflected above, include the revenue for Palmdale Medical Plaza. There was no material impact to our net income as a result of the deconsolidation of this property. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 | Jan. 01, 2014 |
State | Property | ||||
Property | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 61 | ||||
Number of states that real estate investments are located | 18 | ||||
Amortization expense, intangible assets | $6.10 | $6 | $7.80 | ||
Intangible assets, estimated aggregate amortization expenses for 2015 | 5.6 | ||||
Intangible assets, estimated aggregate amortization expenses for 2016 | 4.5 | ||||
Intangible assets, estimated aggregate amortization expenses for 2017 | 3.9 | ||||
Intangible assets, estimated aggregate amortization expenses for 2018 | 2.5 | ||||
Intangible assets, estimated aggregate amortization expenses for 2019 | 1.9 | ||||
Depreciation expense | 14.4 | 12.5 | 12.2 | ||
Percentage of minority ownership interests by parent | 100.00% | 100.00% | |||
Federal excise tax rate when amount of 85% of ordinary income plus 95% of any capital gain income exceeds cash distributions | 4.00% | ||||
Net gain on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 25.4 | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Non-controlling equity interest, ownership percentage | 33.00% | ||||
Percentage of minority ownership purchased from third-party members | 5.00% | ||||
Percentage of real estate investment taxable income that should be distributed to remain exempt from federal income taxes | 90.00% | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Non-controlling equity interest, ownership percentage | 95.00% | ||||
Percentage of minority ownership purchased from third-party members | 15.00% | ||||
Limited Liability Companies | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 8 | 6 | |||
Limited Liability Companies | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of minority ownership purchased from third-party members | 5.00% | ||||
Limited Liability Companies | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of minority ownership purchased from third-party members | 15.00% | ||||
Hospitals | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 6 | ||||
Hospitals | Acute Care | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 3 | ||||
Hospitals | Rehabilitation | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 1 | ||||
Hospitals | Sub-acute | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 2 | ||||
Mission and Weslaco Freestanding Emergency Departments | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 3 | ||||
Medical office buildings | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 48 | ||||
Medical office buildings | Majority-Owned Subsidiary, Unconsolidated | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 5 | ||||
Medical office buildings | Limited Liability Companies | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 5 | ||||
Preschool and childcare Centers | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 4 | ||||
Buildings | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated original useful lives of property plant and equipment | 25 years | ||||
Buildings | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated original useful lives of property plant and equipment | 45 years | ||||
Capital Improvements | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated original useful lives of property plant and equipment | 3 years | ||||
Capital Improvements | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated original useful lives of property plant and equipment | 35 years | ||||
Palmdale Medical Properties and Sparks Medical Properties | |||||
Significant Accounting Policies [Line Items] | |||||
Number of real estate investments | 2 | 2 | |||
Percentage of minority ownership purchased from third-party members | 5.00% | ||||
Percentage of minority ownership interests by parent | 100.00% | ||||
Palmdale Medical Properties and Sparks Medical Properties | Limited Liability Companies | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of minority ownership purchased from third-party members | 5.00% | ||||
Percentage of minority ownership interests by parent | 100.00% | ||||
In Place Leases | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible asset, useful life | 4 years 4 months 24 days | ||||
Gross | |||||
Significant Accounting Policies [Line Items] | |||||
Gross cost basis and net book value of properties for federal income tax purposes | 469 | ||||
Net | |||||
Significant Accounting Policies [Line Items] | |||||
Gross cost basis and net book value of properties for federal income tax purposes | $316 |
Relationship_with_UHS_and_Rela2
Relationship with UHS and Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | 60 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Feb. 28, 2015 | Mar. 06, 2015 | Dec. 31, 2014 | Aug. 01, 2014 | Jan. 01, 2014 | |
Property | Property | Property | Property | |||||||
Times | Times | |||||||||
sqft | sqft | |||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of real estate investments | 61 | 61 | 61 | 61 | ||||||
Acquisition of Third-party minority ownership interest | The decrease during 2014 as compared to 2013, is due primarily to the 2014 purchase of the third-party minority ownership interests in eight LLCs in which we previously held noncontrolling majority ownership interests. | |||||||||
Sales proceeds from divestiture of real property | $17,300,000 | $0 | $0 | |||||||
Non-controlling interest percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
Annual advisory fee as percentage of of average invested real estate assets | 0.70% | 0.70% | 0.65% | 0.70% | 0.70% | 0.70% | ||||
Advisory fee | 2,545,000 | 2,369,000 | 2,119,000 | |||||||
Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-controlling equity interest, ownership percentage | 33.00% | 33.00% | 33.00% | 33.00% | ||||||
Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of term renewal options | 5 | 5 | 5 | 5 | ||||||
Non-controlling equity interest, ownership percentage | 95.00% | 95.00% | 95.00% | 95.00% | ||||||
Universal Health Services, Inc | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of term renewal options | 6 | 6 | 6 | 6 | ||||||
Additional renewal terms | 5 years | |||||||||
Number of office buildings, owned by LLCs, in which the company holds ownership interest | 15 | |||||||||
Option to renew lease, notice period prior to termination date of current term | 90 days | |||||||||
Period to purchase respective leased facilities at same price after lease terms | 180 days | |||||||||
Renewal period of respective leased facilities at same price after lease terms | 180 days | |||||||||
Percentage ownership of outstanding shares | 5.90% | 6.10% | 5.90% | 5.90% | 5.90% | |||||
Universal Health Services, Inc | Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Initial lease terms | 13 years | |||||||||
Universal Health Services, Inc | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Initial lease terms | 15 years | |||||||||
Limited Liability Companies | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of real estate investments | 8 | 8 | 8 | 8 | 6 | |||||
The Bridgeway | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amount of annual lease earned | 1,100,000 | 1,100,000 | 1,100,000 | |||||||
Lease term scheduled end date | 2014-12 | |||||||||
Sales proceeds from divestiture of real property | 17,300,000 | 17,300,000 | ||||||||
Gain on divestiture of property | 13,000,000 | |||||||||
Mission and Weslaco Freestanding Emergency Departments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of real estate investments | 3 | 3 | 3 | 3 | ||||||
Texoma Medical Properties | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-controlling interest percentage | 95.00% | 95.00% | 95.00% | 95.00% | ||||||
Committed investment in equity, funded | 2,600,000 | 2,600,000 | 2,600,000 | 2,600,000 | ||||||
Committed investment in equity and debt financing | 400,000 | 400,000 | 400,000 | 400,000 | ||||||
Third-party term loan | 14,900,000 | 14,900,000 | 14,900,000 | 14,900,000 | ||||||
Palmdale Medical Properties and Sparks Medical Properties | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of real estate investments | 2 | 2 | ||||||||
Non-controlling interest percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Palmdale Medical Properties and Sparks Medical Properties | Limited Liability Companies | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-controlling interest percentage | 100.00% | |||||||||
Universal Health Services of Delaware Inc | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Advisory agreement expiration date of each year | -19 | |||||||||
Annual incentive fee to Advisor as percentage of cash available for distribution | 20.00% | 20.00% | 20.00% | 20.00% | ||||||
Advisory fee | 2,500,000 | 2,400,000 | 2,100,000 | |||||||
Average invested real estate assets | 363,000,000 | 338,000,000 | 326,000,000 | |||||||
Universal Health Services of Delaware Inc | Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of equity to be exceeded for incentive distribution | 15.00% | 15.00% | 15.00% | 15.00% | ||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of term renewal options | 6 | 6 | ||||||||
Additional renewal terms | 5 years | 5 years | ||||||||
Number of real properties purchased | 2 | 2 | ||||||||
Area of acquired building | 13,600 | 13,600 | ||||||||
Lease agreement period | 10 years | 10 years | ||||||||
Estimated acquisition cost of free-standing emergency departments | 12,800,000 | |||||||||
Estimated rental revenues | $900,000 | $900,000 | ||||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | First four renewal options | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage increase in annual lease rate | 2.00% | |||||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | First four renewal options | Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Additional renewal terms, covering year | 2025 | |||||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | First four renewal options | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Additional renewal terms, covering year | 2044 | |||||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | Last two renewal options | Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Additional renewal terms, covering year | 2045 | |||||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | Last two renewal options | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Additional renewal terms, covering year | 2054 | |||||||||
Revenues | Universal Health Services, Inc | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of revenues generated from leases | 28.00% | 30.00% | 30.00% | 36.00% | ||||||
Combined consolidated and unconsolidated revenue | Universal Health Services, Inc | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of revenues generated from leases | 22.00% | 22.00% | 21.00% | 20.00% |
Existing_Lease_Terms_and_Renew
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
McAllen Medical Center | ||
Operating Leased Assets [Line Items] | ||
Type of Facility | Acute Care | |
Annual Minimum Rent | $5,485,000 | |
End of Lease Term | 2016-12 | |
Renewal Term (years) | 15 years | [1] |
Wellington Regional Medical Center | ||
Operating Leased Assets [Line Items] | ||
Type of Facility | Acute Care | |
Annual Minimum Rent | 3,030,000 | |
End of Lease Term | 2016-12 | |
Renewal Term (years) | 15 years | [2] |
Southwest Healthcare System, Inland Valley Campus | ||
Operating Leased Assets [Line Items] | ||
Type of Facility | Acute Care | |
Annual Minimum Rent | $2,648,000 | |
End of Lease Term | 2016-12 | |
Renewal Term (years) | 15 years | [2] |
[1] | UHS has three 5-year renewal options at existing lease rates (through 2031). | |
[2] | UHS has one 5-year renewal option at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Existing_Lease_Terms_and_Renew1
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Parenthetical) (Detail) (Universal Health Services, Inc) | 12 Months Ended |
Dec. 31, 2014 | |
Times | |
McAllen Medical Center | |
Operating Leased Assets [Line Items] | |
Number of renewal options at existing lease rates | 3 |
Renewal options term at existing lease rates | 5 years |
Renewal options at existing lease rates expiration year | 2031 |
Wellington Regional Medical Center And Southwest Healthcare System | |
Operating Leased Assets [Line Items] | |
Number of renewal options at existing lease rates | 1 |
Renewal options term at existing lease rates | 5 years |
Renewal options at existing lease rates expiration year | 2021 |
Number of renewal options at fair market value lease rates | 2 |
Renewal options term at fair market value lease rates | 5 years |
Minimum | Wellington Regional Medical Center And Southwest Healthcare System | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2022 |
Maximum | Wellington Regional Medical Center And Southwest Healthcare System | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2031 |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2015 | Feb. 28, 2015 | Mar. 06, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Feb. 29, 2012 | Oct. 31, 2012 | Apr. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2012 | Aug. 01, 2014 | Aug. 31, 2013 | Jun. 30, 2013 | |||||
Property | Building | Property | Property | sqft | sqft | sqft | sqft | sqft | sqft | |||||||||||||||
sqft | Times | Times | ||||||||||||||||||||||
sqft | sqft | |||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Net cash paid for acquisition of medical office buildings | $15,600,000 | $4,675,000 | $16,891,000 | |||||||||||||||||||||
Deposits on real estate assets | 100,000 | 150,000 | -100,000 | |||||||||||||||||||||
Aggregate purchase price in connection with the purchase of minority ownership interests | 7,000,000 | 7,000,000 | 7,000,000 | |||||||||||||||||||||
Cash paid for purchase of minority interests in majority-owned LLCs | 4,744,000 | 0 | 0 | |||||||||||||||||||||
Payment for acquisition, notes payable | 2,300,000 | 2,300,000 | 2,300,000 | |||||||||||||||||||||
Maturity date, notes payable | 5-Jan-15 | |||||||||||||||||||||||
Number of real estate investments | 61 | 61 | 61 | |||||||||||||||||||||
Percentage of minority ownership interests by parent | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
Gains on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 25,093,000 | [1] | 316,000 | [1] | 25,409,000 | [1] | 0 | 0 | ||||||||||||||||
Purchase price allocation, tangible property | 84,000,000 | 84,000,000 | 84,000,000 | |||||||||||||||||||||
Purchase price allocation, identifiable intangible assets | 6,500,000 | 6,500,000 | 6,500,000 | |||||||||||||||||||||
Purchase price allocation, long term debt | 29,800,000 | 29,800,000 | 29,800,000 | |||||||||||||||||||||
Sales proceeds from divestiture of real property | 17,300,000 | 0 | 0 | |||||||||||||||||||||
Gain on divestiture of property owned by an unconsolidated LLC, net | 0 | 0 | 8,520,000 | [2],[3] | ||||||||||||||||||||
Acquired aggregate revenue | 55,400,000 | |||||||||||||||||||||||
Acquired aggregate net income | 11,600,000 | |||||||||||||||||||||||
Business acquisition proforma earnings per share, diluted | $0.92 | |||||||||||||||||||||||
Net intangible assets | 23,100,000 | 23,100,000 | 23,100,000 | |||||||||||||||||||||
Intangible assets, accumulated amortization | 19,700,000 | 13,700,000 | 19,700,000 | 19,700,000 | ||||||||||||||||||||
Mission and Weslaco Freestanding Emergency Departments | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Number of real estate investments | 3 | 3 | 3 | |||||||||||||||||||||
In Place Leases | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 4 years 4 months 24 days | |||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Ownership prior to minority interest purchase | 85.00% | 85.00% | 85.00% | |||||||||||||||||||||
Capitalization Rate | 7.00% | |||||||||||||||||||||||
Discount rate | 8.00% | |||||||||||||||||||||||
Non-controlling ownership interest | 33.00% | 33.00% | 33.00% | |||||||||||||||||||||
Maximum | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Number of term renewal options | 5 | 5 | 5 | |||||||||||||||||||||
Ownership prior to minority interest purchase | 95.00% | 95.00% | 95.00% | |||||||||||||||||||||
Capitalization Rate | 8.75% | |||||||||||||||||||||||
Discount rate | 9.75% | |||||||||||||||||||||||
Non-controlling ownership interest | 95.00% | 95.00% | 95.00% | |||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Number of Buildings purchased | 2 | |||||||||||||||||||||||
Net rentable area | 16,000 | 16,000 | ||||||||||||||||||||||
Total purchase price | 4,100,000 | 4,100,000 | ||||||||||||||||||||||
Subsequent Event | Mission and Weslaco Freestanding Emergency Departments | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Total purchase price | 12,800,000 | 12,800,000 | ||||||||||||||||||||||
Number of real properties purchased | 2 | 2 | ||||||||||||||||||||||
Area of acquired building | 13,600 | 13,600 | 13,600 | |||||||||||||||||||||
Lease agreement period | 10 years | 10 years | ||||||||||||||||||||||
Number of term renewal options | 6 | 6 | 6 | |||||||||||||||||||||
Additional renewal terms | 5 years | 5 years | ||||||||||||||||||||||
Estimated rental revenues | 900,000 | 900,000 | ||||||||||||||||||||||
Limited Liability Companies | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Number of real estate investments | 8 | 8 | 8 | 6 | ||||||||||||||||||||
The Bridgeway | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Sales proceeds from divestiture of real property | 17,300,000 | 17,300,000 | ||||||||||||||||||||||
Amount of annual lease earned | 1,100,000 | 1,100,000 | 1,100,000 | |||||||||||||||||||||
Gain on divestiture of property | 13,000,000 | |||||||||||||||||||||||
Lease term scheduled end date | 2014-12 | |||||||||||||||||||||||
Property at fair value | 17,300,000 | 17,300,000 | 17,300,000 | |||||||||||||||||||||
Canyon Healthcare Properties | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Non-controlling ownership interest | 95.00% | |||||||||||||||||||||||
Canyon Healthcare Properties | Canyon Springs Medical Plaza | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Cash proceeds from divestiture, net of closing costs and minority members' share | 8,100,000 | |||||||||||||||||||||||
Gain on divestiture of property owned by an unconsolidated LLC, net | 7,400,000 | |||||||||||||||||||||||
575 Hardy Investor | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Non-controlling ownership interest | 90.00% | |||||||||||||||||||||||
575 Hardy Investor | Centinela Medical Building Complex | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Cash proceeds from divestiture, net of closing costs and minority members' share | 12,200,000 | |||||||||||||||||||||||
Repayment of previously provided member loan | 8,000,000 | |||||||||||||||||||||||
Gain related to divestiture | 1,100,000 | |||||||||||||||||||||||
Children's Clinic | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Area of acquired building | 9,800 | |||||||||||||||||||||||
Ward Eagle Office Village Medical Office Building | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Net rentable area | 16,300 | |||||||||||||||||||||||
Total purchase price | 4,100,000 | |||||||||||||||||||||||
5004 Poole Road MOB Office building | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Net rentable area | 4,400 | |||||||||||||||||||||||
Total purchase price | 625,000 | |||||||||||||||||||||||
2013 Acquisitions | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Total purchase price | 4,700,000 | |||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 8 years 4 months 24 days | 9 years 9 months 18 days | ||||||||||||||||||||||
Aggregate purchase price in connection with the purchase of minority ownership interests | 4,685,000 | |||||||||||||||||||||||
Payment for acquisition, notes payable | 11,000 | |||||||||||||||||||||||
Purchase price allocation, identifiable intangible assets | 610,000 | |||||||||||||||||||||||
Forney Medical Plaza | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Non-controlling ownership interest | 95.00% | |||||||||||||||||||||||
Rentable medical office building | 30,000 | |||||||||||||||||||||||
Medical office buildings | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Aggregate revenue from acquired entity | 2,700,000 | |||||||||||||||||||||||
Aggregate net income from acquired entity | 232,000 | |||||||||||||||||||||||
Transaction Expenses | 680,000 | |||||||||||||||||||||||
Northwest Medical Center | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Area of acquired building | 13,700 | |||||||||||||||||||||||
Northwest Texas Professional Office Tower | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Total purchase price | 9,600,000 | 9,600,000 | ||||||||||||||||||||||
Area of acquired building | 72,000 | 72,000 | ||||||||||||||||||||||
Weighted average remaining lease term | 5 years 1 month 6 days | |||||||||||||||||||||||
2012 Acquisitions | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Total purchase price | 40,000,000 | 40,000,000 | ||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 5 years | 7 years | ||||||||||||||||||||||
Aggregate purchase price in connection with the purchase of minority ownership interests | 16,891,000 | 16,891,000 | ||||||||||||||||||||||
Payment for acquisition, notes payable | 144,000 | 144,000 | ||||||||||||||||||||||
Purchase price allocation, identifiable intangible assets | 6,020,000 | 6,020,000 | ||||||||||||||||||||||
Purchase price allocation, long term debt | 23,240,000 | 23,240,000 | ||||||||||||||||||||||
Hanover Emergency Center | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Net rentable area | 22,000 | |||||||||||||||||||||||
Net cash paid for acquisition of medical office buildings | 8,600,000 | |||||||||||||||||||||||
Lease term | 10 years | |||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 9 years 6 months | 9 years 9 months 18 days | ||||||||||||||||||||||
Children's Clinic and Northwest Medical Center | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Net cash paid for acquisition of medical office buildings | 7,200,000 | |||||||||||||||||||||||
Deposits on real estate assets | 150,000 | |||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 8 years 8 months 12 days | 9 years 8 months 12 days | ||||||||||||||||||||||
August 1, 2014 Acquisitions | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 4 years 8 months 12 days | 4 years 3 months 18 days | ||||||||||||||||||||||
January 1, 2014 Acquisitions | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Intangible assets amortization period at date of acquisition | 5 years 3 months 18 days | 5 years 6 months | ||||||||||||||||||||||
Peace Health Medical Clinic | ||||||||||||||||||||||||
Business Acquisitions and Dispositions [Line Items] | ||||||||||||||||||||||||
Total purchase price | $30,400,000 | |||||||||||||||||||||||
Area of acquired building | 99,000 | |||||||||||||||||||||||
Weighted average remaining lease term | 10 years | |||||||||||||||||||||||
[1] | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | |||||||||||||||||||||||
[2] | As mentioned above, we began to account for Sparks Medical Properties on a consolidated basis as of January 1, 2014. Prior to January 1, 2014, the financial results of this entity were accounted for under the equity method on an unconsolidated basis. These amounts include the financial results for Sparks Medical Properties for the years ended December 31, 2013 and 2012. In addition, we purchased the minority ownership interests in six LLCs effective August 1, 2014 (as mentioned in (b.) above) and began to account for the LLCs a consolidated basis as of that date. These amounts include the financial results for these six LLCs for the years ended December 31, 2013 and 2012. As also mentioned above, we began to account for Palmdale Medical Properties on a consolidated basis as of January 1, 2014. Prior thereto, as a result of a master lease commitment with a wholly-owned subsidiary of UHS which expired effective as of July 1, 2013, the financial results of Palmdale Medical Properties was accounted for on a consolidated basis through the six-month period ended June 30, 2013 and then on an unconsolidated basis for the six-month period of July 1, 2013 through December 31, 2013. Therefore the financial results of this entity are reflected in the table above for the six-month period of July 1, 2013 through December 31, 2013. | |||||||||||||||||||||||
[3] | As mentioned above, during the first quarter of 2012 and the fourth quarter of 2012, two LLCs in which we previously owned various noncontrolling, majority ownership interests (Canyon Healthcare Properties and 575 Hardy Investors), completed divestitures of medical office buildings and related real property. Our share of the financial results of the divested entities were previously accounted for on an unconsolidated basis under the equity method. |
Allocation_of_Purchase_Price_t
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Intangible assets | $6,500 | ||
Liabilities (real property and operating) | -2,300 | ||
Debt (including fair value adjustment of $799) | -29,800 | ||
Net cash paid | 7,000 | ||
2014 Acquisitions | |||
Business Acquisition [Line Items] | |||
Land | 3,010 | ||
Buildings and improvements | 10,664 | ||
Intangible assets | 2,076 | ||
Deposit paid in 2011 | -150 | ||
Net cash paid | 15,600 | ||
2013 Acquisitions | |||
Business Acquisition [Line Items] | |||
Land | 316 | ||
Buildings and improvements | 3,749 | ||
Intangible assets | 610 | ||
Other assets | 21 | ||
Liabilities (real property and operating) | -11 | ||
Net cash paid | 4,685 | ||
2012 Acquisitions | |||
Business Acquisition [Line Items] | |||
Land | 1,900 | ||
Buildings and improvements | 32,090 | ||
Intangible assets | 6,020 | ||
Other assets | 799 | ||
Liabilities (real property and operating) | -144 | ||
Deposit paid in 2011 | -534 | ||
Debt (including fair value adjustment of $799) | -23,240 | ||
Net cash paid | $16,891 |
Purchased_Minority_Ownership_I
Purchased Minority Ownership Interest (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
DVMC Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 90.00% |
Property Owned by LLC | Desert Valley Medical Center |
Effective Date | 1-Aug-14 |
Santa Fe Scottsdale | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 90.00% |
Property Owned by LLC | Santa Fe Professional Plaza |
Effective Date | 1-Aug-14 |
PCH Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 85.00% |
Property Owned by LLC | Rosenberg Children's Medical Plaza |
Effective Date | 1-Aug-14 |
Sierra Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | Sierra San Antonio Medical Plaza |
Effective Date | 1-Aug-14 |
PCH Southern Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | Phoenix Children's East Valley Care Center |
Effective Date | 1-Aug-14 |
3811 Bell Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | North Valley Medical Plaza |
Effective Date | 1-Aug-14 |
Palmdale Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | Palmdale Medical Plaza |
Effective Date | 1-Jan-14 |
Sparks Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | Vista Medical Terrace & Sparks MOB |
Effective Date | 1-Jan-14 |
Allocation_of_Purchase_Price_t1
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (2012 Acquisitions, USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
2012 Acquisitions | |
Business Acquisition [Line Items] | |
Debt, fair value adjustment | $799 |
QuantitativeInformationAboutSi
QuantitativeInformationAboutSignificantUnobservableInputsTable (Detail) (Fair Value, Inputs, Level 3, USD $) | 12 Months Ended | |
Dec. 31, 2012 | ||
Peace Health Medical Clinic | ||
Quantitative Information About Significant Unobservable Inputs [Line Items] | ||
Assets | PeaceHealth Medical Clinic | [1],[2] |
Fair Value of Assets | $30,400,000 | [1],[2] |
Valuation Technique | Income Capitalization Approach | [1],[2] |
Unobservable inputs | Capitalization Rate | [1],[2] |
Capitalization Rate | 7.50% | [1],[2] |
Discount rate | 8.50% | [1],[2] |
Northwest Texas Professional Office Tower | ||
Quantitative Information About Significant Unobservable Inputs [Line Items] | ||
Assets | Northwest Texas Professional Office Tower | |
Fair Value of Assets | $9,600,000 | |
Valuation Technique | Income Capitalization Approach | |
Unobservable inputs | Capitalization Rate | |
Capitalization Rate | 8.60% | |
Discount rate | 9.50% | |
[1] | The fair value of the land was estimated based upon the sales comparison approach. | |
[2] | Debt is recorded at its current estimated fair value based upon significant inputs including outstanding loan balance, term, stated interest rate and current market rate of the mortgage. |
Leases_Additional_Information_
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Leases Disclosure [Line Items] | |
Renewal option term | 5 years |
Minimum | |
Leases Disclosure [Line Items] | |
Operating Lease Terms | 3 years |
Maximum | |
Leases Disclosure [Line Items] | |
Operating Lease Terms | 15 years |
Number of term renewal options | 5 |
Schedule_of_minimum_future_bas
Schedule of minimum future base rents from non-cancelable leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases Future Minimum Payments [Line Items] | |
2015 | $49,207 |
2016 | 46,051 |
2017 | 30,330 |
2018 | 25,799 |
2019 | 21,127 |
Thereafter | 57,916 |
Total minimum base rents | $230,430 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Sep. 30, 2013 | Jul. 01, 2014 | Feb. 10, 2015 | ||
MortgageLoan | Derivative | Derivative | ||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowing | $150,000,000 | |||||||
Outstanding borrowings under revolving credit agreement | 89,750,000 | 93,700,000 | ||||||
Outstanding borrowings under letter of credit | 6,300,000 | |||||||
Available borrowing capacity | 54,000,000 | |||||||
Average amounts outstanding under our revolving credit agreement | 104,600,000 | 86,300,000 | 75,400,000 | |||||
Effective interest rate | 2.40% | 2.20% | 2.40% | |||||
Line of credit, fair value of borrowings outstanding | 89,800,000 | |||||||
Mortgage loan maturity period | 5-Jan-15 | |||||||
Percentage of increase dividends in excess of cash available for distribution | 95.00% | |||||||
Balance of Non Recourse Mortgages | 122,882,000 | [1] | ||||||
Net debt premiums | 523,000 | 834,000 | ||||||
Number of non-recourse mortgages | 16 | |||||||
Mortgage loan fair value | 124,700,000 | |||||||
Interest Rate Cap | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of interest rate cap agreements | 2 | 1 | ||||||
Notional amount | 20,000,000 | 10,000,000 | ||||||
Premium paid | 134,500 | 136,000 | ||||||
Expiration date of interest rate cap | 13-Jan-17 | 13-Jan-17 | ||||||
Interest Rate Cap | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative instruments, LIBOR rate | 1.50% | 1.50% | ||||||
New Revolving Credit Facility Agreement, Additional Borrowing to Repay Outstanding Mortgage Balance | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit borrowing capacity additional amount | 9,100,000 | |||||||
Mortgage loan maturity period | 1-Jul-14 | |||||||
New Revolving Credit Facility Agreement, Additional Borrowing to Repay Outstanding Mortgage Balance | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit borrowing capacity additional amount | 4,900,000 | |||||||
Mortgage loan maturity period | 10-Feb-15 | |||||||
New Revolving Credit Facility Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured revolving credit agreement terminated | 24-Jul-15 | |||||||
Outstanding borrowing | 150,000,000 | |||||||
Revolving credit borrowing capacity additional amount | 50,000,000 | |||||||
Credit facility, Interest Rate Terms | One, two, three, or six month LIBOR plus an applicable margin ranging from 1.75% to 2.50% or at the Base Rate plus an applicable margin ranging from 0.75% to 1.50% | |||||||
Base rate description | Greatest of (a) the administrative agent's prime rate; (b) the federal funds effective rate plus 0.50%, and; (c) one month LIBOR plus 1%. | |||||||
Fee payable on unused portion of commitment | 0.35% | |||||||
New Revolving Credit Facility Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Fee payable on unused portion of commitment | 0.30% | |||||||
New Revolving Credit Facility Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Fee payable on unused portion of commitment | 0.50% | |||||||
New Revolving Credit Facility Agreement | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the reference rate | 2.00% | |||||||
New Revolving Credit Facility Agreement | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the reference rate | 1.75% | |||||||
Margin points added to the base rate | 1.00% | |||||||
New Revolving Credit Facility Agreement | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the reference rate | 2.50% | |||||||
New Revolving Credit Facility Agreement | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the reference rate | 1.00% | |||||||
New Revolving Credit Facility Agreement | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the reference rate | 0.75% | |||||||
New Revolving Credit Facility Agreement | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the reference rate | 1.50% | |||||||
New Revolving Credit Facility Agreement | Federal Funds Effective Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin points added to the base rate | 0.50% | |||||||
New Revolving Credit Facility Agreement | Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowing | 50,000,000 | |||||||
New Revolving Credit Facility Agreement | Swingline/Short-Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowing | $20,000,000 | |||||||
[1] | Amortized principal payments are made on a monthly basis. |
Summary_of_Required_Compliance
Summary of Required Compliance Ratios in Connection with Terms of Credit Agreement (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Debt Instrument [Line Items] | |
Covenant, Tangible net worth | 125,000 |
Tangible net worth | 181,458 |
Debt to total capital | 30.00% |
Debt service coverage ratio | 2540.00% |
Debt to cash flow ratio | 129.00% |
Maximum | |
Debt Instrument [Line Items] | |
Covenant, Debt to total capital | 55.00% |
Covenant, Debt to cash flow ratio | 350.00% |
Minimum | |
Debt Instrument [Line Items] | |
Covenant, Debt service coverage ratio | 300.00% |
Summary_of_Outstanding_Mortgag
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Outstanding Balance | $122,882 | [1] |
Spring Valley Medical Office Building fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 4,920 | [1],[2] |
Interest Rate | 5.50% | [2] |
Maturity Date | 2015-02 | [2] |
Desert Valley Medical Center Floating Rate Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 3,861 | [1],[3] |
Interest Rate | 3.41% | [3] |
Maturity Date | 2015-10 | [3] |
Palmdale Medical Plaza fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 6,008 | [1],[3] |
Interest Rate | 3.69% | [3] |
Maturity Date | 2015-10 | [3] |
Summerlin Hospital Medical Office Building III floating rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 11,025 | [1] |
Interest Rate | 3.41% | |
Maturity Date | 2016-12 | |
Peace Health fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 21,248 | [1] |
Interest Rate | 5.64% | |
Maturity Date | 2017-04 | |
Auburn Medical II floating rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 7,183 | [1] |
Interest Rate | 2.90% | |
Maturity Date | 2017-04 | |
Medical Center of Western Connecticut fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 4,785 | [1] |
Interest Rate | 6.00% | |
Maturity Date | 2017-06 | |
Summerlin Hospital Medical Office Building II fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 11,729 | [1] |
Interest Rate | 5.50% | |
Maturity Date | 2017-10 | |
Phoenix Children's East Valley Care Center Fixed Rate Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 6,485 | [1] |
Interest Rate | 5.88% | |
Maturity Date | 2017-12 | |
Centennial Hills Medical Office Building floating rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 10,642 | [1] |
Interest Rate | 3.41% | |
Maturity Date | 2018-01 | |
Sparks Medical Building/Vista Medical Terrace Floating Rate Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 4,479 | [1] |
Interest Rate | 3.41% | |
Maturity Date | 2018-02 | |
Rosenberg Children's Medical Plaza Fixed Rate Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 8,479 | [1] |
Interest Rate | 4.85% | |
Maturity Date | 2018-05 | |
Vibra Hospital-Corpus Christi fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 2,902 | [1] |
Interest Rate | 6.50% | |
Maturity Date | 2019-07 | |
700 Shadow Lane and Goldring MOBs fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 6,601 | [1] |
Interest Rate | 4.54% | |
Maturity Date | 2022-06 | |
BRB Medical Office Building fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 6,673 | [1] |
Interest Rate | 4.27% | |
Maturity Date | 2022-12 | |
Tuscan Professional Building fixed rate mortgage loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $5,862 | [1] |
Interest Rate | 5.56% | |
Maturity Date | 2025-06 | |
[1] | Amortized principal payments are made on a monthly basis. | |
[2] | This loan was repaid in full on February 10, 2015, utilizing funds borrowed under our revolving credit facility. | |
[3] | We expect these loans, which have a maturity date in October, 2015, to be refinanced at the then current market interest rates or repaid utilizing funds borrowed under our revolving credit facility. |
Aggregate_Consolidated_Schedul
Aggregate Consolidated Scheduled Debt Repayment (Detail) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
2015 | $107,646 | [1] |
2016 | 13,600 | |
2017 | 50,399 | |
2018 | 22,658 | |
2019 | 3,463 | |
Later | 14,866 | |
Total | $212,632 | |
[1] | Includes repayment of $89.8 million of outstanding borrowings under the terms of our $150 million revolving credit agreement. |
Aggregate_Consolidated_Schedul1
Aggregate Consolidated Scheduled Debt Repayment (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ||
Outstanding borrowings under revolving credit agreement | $89,750,000 | $93,700,000 |
Revolving credit agreement value | $150,000,000 |
Dividends_and_Equity_Issuance_1
Dividends and Equity Issuance Program - Additional Information (Detail) (USD $) | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Dividends [Line Items] | ||||
Declared and paid dividends, per share | $2.52 | $2.50 | $2.46 | |
Ordinary income per share | $1.48 | $1.96 | $1.29 | |
Capital gain per share | $1.04 | $0.54 | $1.17 | |
Securities, aggregate sales price | $50,000,000 | |||
At-The-Market (ATM) Equity Issuance Program | ||||
Dividends [Line Items] | ||||
Share issued | 426,187 | 154,713 | 580,900 | |
Average sale price per share | $47.51 | $41.71 | $45.97 | |
Net cash proceeds or receivables from stock issued | 19,500,000 | 6,100,000 | 25,600,000 | |
Payment of stock issuance cost | 701,000 | 357,000 | 1,100,000 | |
Net proceeds receivable | 1,100,000 | 600,000 | ||
At-The-Market (ATM) Equity Issuance Program | Compensation to Merrill Lynch | ||||
Dividends [Line Items] | ||||
Payment of stock issuance cost | 506,000 | 161,000 | 667,000 | |
At-The-Market (ATM) Equity Issuance Program | Other Expense | ||||
Dividends [Line Items] | ||||
Payment of stock issuance cost | $195,000 | $196,000 | $391,000 | |
Capital gain | ||||
Dividends [Line Items] | ||||
Unrecaptured Section 1250 gain dividends per share | $0.31 | $0.28 |
Incentive_Plans_Additional_Inf
Incentive Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Incentive Plan [Line Items] | |||
Options outstanding and exercisable | 36,000 | ||
Options outstanding and exercisable, average price per share | $35.94 | ||
Dividend equivalent rights, outstanding | 36,000 | 40,000 | 43,000 |
Dividend equivalent rights paid to officers and Trustees | $94,000 | $106,000 | $116,000 |
Number of stock options exercised during the period, shares | 4,000 | 3,000 | 8,000 |
Value of stock options exercised during the period | 44,160 | 46,290 | 148,930 |
Number of unvested options during the period | 0 | ||
Incentive Plan 2007 | |||
Equity Incentive Plan [Line Items] | |||
Number of shares authorized for issuance | 75,000 | ||
Shares issued, net of cancellation | 57,825 | ||
Number of shares vested | 39,245 | ||
Number of shares remaining for issuance | 17,175 | ||
Restricted shares issued, net of cancellation | 9,850 | 8,730 | 10,375 |
Restricted shares issued, weighted average grant price | $43.21 | $43.54 | $39.05 |
Restricted shares of beneficial interest, net of cancellations, issued, value | 425,619 | 380,104 | 405,144 |
Restricted shares, Vesting Period | 2016-06 | 2015-06 | 2014-06 |
Compensation expenses | 399,000 | 375,000 | 329,000 |
Compensation expenses remained to be recognized in future | $381,000 | ||
Compensation expenses not yet recognized, period of recognition | 1 year | ||
1997 Plan | |||
Equity Incentive Plan [Line Items] | |||
Options granted, vesting percentage per year starting from one year from date of grant | 25.00% | ||
Options, expiration period | 10 years | ||
Options outstanding and exercisable | 36,000 | ||
Options outstanding and exercisable, average price per share | $35.94 | ||
Outstanding stock options, remaining weighted average life | 1 year 7 months 6 days |
Options_Before_Adjustment_to_O
Options Before Adjustment to Option Price to Give Effect to Dilutive Equivalence (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares outstanding options, beginning balance | 40,000 | 43,000 | 51,000 |
Number of shares outstanding options, exercised | -4,000 | -3,000 | -8,000 |
Number of shares outstanding options, ending balance | 36,000 | 40,000 | 43,000 |
Exercise weighted average price, outstanding option beginning balance | $35.65 | $35.22 | $33.89 |
Exercise weighted average price, outstanding option Exercised | $33.07 | $29.44 | $26.76 |
Exercise weighted average price, outstanding option Ending balance | $35.94 | $35.65 | $35.22 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant price, Beginning balance | $36.53 | $36.53 | $36.53 |
Grant price, Exercised | $30.06 | $29.44 | $27.65 |
Grant price, ending Balance | $36.53 | $36.53 | |
Grant price, vested and exercisable | $34.90 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant price, Beginning balance | $30.06 | $29.44 | $26.09 |
Grant price, Exercised | $34.07 | $29.44 | $26.09 |
Grant price, ending Balance | $30.06 | $29.44 | |
Grant price, vested and exercisable | $36.53 |
Options_Outstanding_and_Exerci
Options Outstanding and Exercisable Options (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number | 36,000 |
Weighted average exercise price | $35.94 |
Aggregate intrinsic value | $438,430 |
Weighted average remaining contractual life | 1 year 7 months 6 days |
Weighted_Average_Remaining_Con
Weighted Average Remaining Contractual Life and Weighted Average Exercise Price for Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding and Exercisable, shares | 36,000 |
Options outstanding and Exercisable, weighted average exercise price per share | $35.94 |
Options outstanding and Exercisable, weighted average remaining contractual life (in Years) | 1 year 7 months 6 days |
Price Range 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $34.90 |
Range of exercise prices, upper limit | $34.90 |
Options outstanding and Exercisable, shares | 13,000 |
Options outstanding and Exercisable, weighted average exercise price per share | $34.90 |
Options outstanding and Exercisable, weighted average remaining contractual life (in Years) | 8 months 12 days |
Price Range 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | $36.53 |
Range of exercise prices, upper limit | $36.53 |
Options outstanding and Exercisable, shares | 23,000 |
Options outstanding and Exercisable, weighted average exercise price per share | $36.53 |
Options outstanding and Exercisable, weighted average remaining contractual life (in Years) | 2 years 2 months 12 days |
Price Range 3 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding and Exercisable, shares | 36,000 |
Options outstanding and Exercisable, weighted average exercise price per share | $35.94 |
Options outstanding and Exercisable, weighted average remaining contractual life (in Years) | 1 year 7 months 6 days |
Summarized_Financial_Informati2
Summarized Financial Information of Equity Affiliates - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2014 | Aug. 01, 2014 | Feb. 29, 2012 | Oct. 31, 2012 | Jan. 01, 2014 | Dec. 31, 2013 | |
Property | Property | |||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate investments | 61 | |||||
Percentage of minority ownership interests by parent | 100.00% | 100.00% | ||||
Canyon Healthcare Properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-controlling equity interest, ownership percentage | 95.00% | |||||
575 Hardy Investors | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-controlling equity interest, ownership percentage | 90.00% | |||||
Medical office buildings | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate investments | 48 | |||||
Limited Liability Companies | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate investments | 8 | 6 | ||||
Limited Liability Companies | Medical office buildings | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate investments | 5 | |||||
Palmdale Medical Properties and Sparks Medical Properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate investments | 2 | 2 | ||||
Percentage of minority ownership purchased from third-party members | 5.00% | |||||
Percentage of minority ownership interests by parent | 100.00% | |||||
Palmdale Medical Properties and Sparks Medical Properties | Limited Liability Companies | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of minority ownership purchased from third-party members | 5.00% | |||||
Percentage of minority ownership interests by parent | 100.00% | |||||
Minimum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-controlling equity interest, ownership percentage | 33.00% | |||||
Percentage of minority ownership purchased from third-party members | 5.00% | |||||
Number of days for Non-Offering Member either to purchase or sell its entire ownership interest to or from Offering Member | 60 days | |||||
Minimum | Limited Liability Companies | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of minority ownership purchased from third-party members | 5.00% | |||||
Maximum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-controlling equity interest, ownership percentage | 95.00% | |||||
Percentage of minority ownership purchased from third-party members | 15.00% | |||||
Number of days for Non-Offering Member either to purchase or sell its entire ownership interest to or from Offering Member | 90 days | |||||
Maximum | Limited Liability Companies | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of minority ownership purchased from third-party members | 15.00% |
Limited_Liability_Companies_Ac
Limited Liability Companies Accounted for Under Equity Method (Detail) (Equity Method Investments) | 12 Months Ended | |
Dec. 31, 2014 | ||
Suburban Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 33.00% | |
Property Owned by LLC | Suburban Medical Plaza II | |
Brunswick Associates | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 74.00% | [1] |
Property Owned by LLC | Mid Coast Hospital MOB | [1] |
Arlington Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 75.00% | [2] |
Property Owned by LLC | Saint Mary's Professional Office Building | [2] |
Grayson Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [3] |
Property Owned by LLC | Texoma Medical Plaza | [3] |
FTX MOB Phase II limited partnership | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [4] |
Property Owned by LLC | Forney Medical Plaza II | [4] |
DVMC Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 90.00% | |
Property Owned by LLC | Desert Valley Medical Center | |
Effective Date | 1-Aug-14 | |
Santa Fe Scottsdale | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 90.00% | |
Property Owned by LLC | Santa Fe Professional Plaza | |
Effective Date | 1-Aug-14 | |
PCH Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 85.00% | |
Property Owned by LLC | Rosenberg Children's Medical Plaza | |
Effective Date | 1-Aug-14 | |
Sierra Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | |
Property Owned by LLC | Sierra San Antonio Medical Plaza | |
Effective Date | 1-Aug-14 | |
PCH Southern Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | |
Property Owned by LLC | Phoenix Children's East Valley Care Center | |
Effective Date | 1-Aug-14 | |
3811 Bell Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | |
Property Owned by LLC | North Valley Medical Plaza | |
Effective Date | 1-Aug-14 | |
Palmdale Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | |
Property Owned by LLC | Palmdale Medical Plaza | |
Effective Date | 1-Jan-14 | |
Sparks Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | |
Property Owned by LLC | Vista Medical Terrace & Sparks MOB | |
Effective Date | 1-Jan-14 | |
[1] | This LLC has a third-party term loan of $9.0 million, which is non-recourse to us, outstanding as of December 31, 2014. | |
[2] | We have funded $5.2 million in equity as of December 31, 2014 and are committed to invest an additional $1.1 million. This LLC has a third-party term loan of $23.3 million, which is non-recourse to us, outstanding as of December 31, 2014. | |
[3] | We have funded $2.6 million in equity as of December 31, 2014, and are committed to fund an additional $400,000. This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LLC has a third-party term loan of $14.9 million, which is non-recourse to us, outstanding as of December 31, 2014 | |
[4] | We have committed to invest up to $2.5 million in equity and debt financing, of which $1.4 million has been funded as of December 31, 2014. This LLC has a third-party term loan of $5.5 million, which is non-recourse to us, outstanding as of December 31, 2014. |
Limited_Liability_Companies_Ac1
Limited Liability Companies Accounted for Under Equity Method (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 |
Arlington Medical Properties | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | $23,300,000 |
Committed investment in equity and debt financing, funded | 5,200,000 |
Commitment to investment | 1,100,000 |
Grayson Properties | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | 14,900,000 |
Committed investment in equity and debt financing, funded | 2,600,000 |
Commitment to investment | 400,000 |
FTX MOB Phase II limited partnership | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | 5,500,000 |
Committed investment in equity and debt financing, funded | 1,400,000 |
Commitment to investment | 2,500,000 |
Brunswick Associates | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | $9,000,000 |
Condensed_Combined_Statement_o
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues | $17,292 | [1] | $21,001 | [2] | $21,448 | [2],[3] |
Operating expenses | 6,769 | [1] | 8,705 | [2] | 8,974 | [2],[3] |
Depreciation and amortization | 2,968 | [1] | 4,039 | [2] | 4,140 | [2],[3] |
Interest, net | 4,261 | [1] | 6,353 | [2] | 6,056 | [2],[3] |
Net income before gains on divestitures | 3,294 | [1] | 1,904 | [2] | 2,278 | [2],[3] |
Our share of net income before gains on divestitures | 2,428 | [1],[4] | 2,095 | [2],[4] | 2,365 | [2],[3],[4] |
Our share of gains on divestitures | $0 | $0 | $8,520 | [2],[3] | ||
[1] | As mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. Prior to August 1, 2014, the financial results of these entities were accounted for under the equity method on an unconsolidated basis. The year ended December 31, 2014, include the financial results of the six mentioned LLCs for seven months ended July 31, 2014. | |||||
[2] | As mentioned above, we began to account for Sparks Medical Properties on a consolidated basis as of January 1, 2014. Prior to January 1, 2014, the financial results of this entity were accounted for under the equity method on an unconsolidated basis. These amounts include the financial results for Sparks Medical Properties for the years ended December 31, 2013 and 2012. In addition, we purchased the minority ownership interests in six LLCs effective August 1, 2014 (as mentioned in (b.) above) and began to account for the LLCs a consolidated basis as of that date. These amounts include the financial results for these six LLCs for the years ended December 31, 2013 and 2012. As also mentioned above, we began to account for Palmdale Medical Properties on a consolidated basis as of January 1, 2014. Prior thereto, as a result of a master lease commitment with a wholly-owned subsidiary of UHS which expired effective as of July 1, 2013, the financial results of Palmdale Medical Properties was accounted for on a consolidated basis through the six-month period ended June 30, 2013 and then on an unconsolidated basis for the six-month period of July 1, 2013 through December 31, 2013. Therefore the financial results of this entity are reflected in the table above for the six-month period of July 1, 2013 through December 31, 2013. | |||||
[3] | As mentioned above, during the first quarter of 2012 and the fourth quarter of 2012, two LLCs in which we previously owned various noncontrolling, majority ownership interests (Canyon Healthcare Properties and 575 Hardy Investors), completed divestitures of medical office buildings and related real property. Our share of the financial results of the divested entities were previously accounted for on an unconsolidated basis under the equity method. | |||||
[4] | Our share of net income during 2014, 2013 and 2012, includes interest income earned by us on various advances made to LLCs of approximately $834,000, $1.9 million and $1.5 million, respectively. |
Condensed_Combined_Statement_o1
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | |||
Interest income earned on various advances made to LLCs | $834,000 | $1,900,000 | $1,500,000 |
Condensed_Combined_Balance_She
Condensed Combined Balance Sheets of Limited Liabilities Accounted for under Equity Method (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net property, including CIP | $62,450 | [1] | $119,547 | [1],[2] |
Other assets | 7,367 | [1] | 9,479 | [1],[2] |
Total assets | 69,817 | [1] | 129,026 | [1],[2] |
Liabilities | 3,348 | [1] | 5,336 | [1],[2] |
Mortgage notes payable, non-recourse to us | 52,728 | [1] | 80,112 | [1],[2] |
Advances payable to us | 22,911 | [1],[2] | ||
Equity | 13,741 | [1] | 20,667 | [1],[2] |
Total liabilities and equity | 69,817 | [1] | 129,026 | [1],[2] |
Our share of equity and advances to LLCs | $8,605 | [1] | $39,201 | [1],[2] |
[1] | The amounts presented include the balance sheet amounts for each of the five entities that are accounted for on an unconsolidated basis as of December 31, 2014. | |||
[2] | As mentioned above, we began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. As also mentioned above, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. The amounts reflected for December 31, 2013, include the balance sheet amounts for each of these entities since they were accounted for on an unconsolidated basis pursuant to the equity method as of December 31, 2013. |
Aggregate_Principal_Amounts_Du
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
2015 | $107,646 | [1] |
2016 | 13,600 | |
2017 | 50,399 | |
2018 | 22,658 | |
2019 | 3,463 | |
2020 and After | 14,866 | |
Mortgage Loan Balance | 212,632 | |
Equity Method Investments | ||
Schedule of Equity Method Investments [Line Items] | ||
2015 | 23,832 | |
2016 | 530 | |
2017 | 5,727 | |
2018 | 445 | |
2019 | 466 | |
2020 and After | 21,728 | |
Mortgage Loan Balance | 52,728 | [2] |
Equity Method Investments | Arlington Medical Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Mortgage Loan Balance | 23,287 | [2],[3] |
Maturity Date | 2015-10 | [3] |
Equity Method Investments | FTX MOB Phase II | ||
Schedule of Equity Method Investments [Line Items] | ||
Mortgage Loan Balance | 5,548 | [2],[4] |
Maturity Date | 2017-08 | [4] |
Equity Method Investments | Grayson Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Mortgage Loan Balance | 14,893 | [2],[5] |
Maturity Date | 2021-09 | [5] |
Equity Method Investments | Brunswick Associates | ||
Schedule of Equity Method Investments [Line Items] | ||
Mortgage Loan Balance | $9,000 | [2],[6] |
Maturity Date | 2024-12 | [6] |
[1] | Includes repayment of $89.8 million of outstanding borrowings under the terms of our $150 million revolving credit agreement. | |
[2] | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. | |
[3] | We believe the terms of this loan are within current market underwriting criteria. At this time, we expect to refinance this loan during 2015 for three to ten year terms at the then current market interest rates. In the unexpected event that we are unable to refinance this loan on reasonable terms, we will explore other financing alternatives, including, among other things, increasing our equity investment in the property utilizing funds borrowed under our revolving credit agreement. | |
[4] | This loan was converted from a construction loan to a term loan in August, 2014, pursuant to the terms of the loan agreement. | |
[5] | This loan was refinanced in September, 2014, for a seven year term, at a fixed rate of 5.034%. This loan includes two one-year extension options. | |
[6] | This loan was refinanced in December, 2014, for a ten year term, at a fixed rate of 1.50% for the initial six months, and fixed rate of 3.64% commencing July 1, 2015 through December 31, 2024. |
Aggregate_Principal_Amounts_Du1
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Option | |
Equity Method Investments | Grayson Properties | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 7 years |
Refinance of loan, interest rate | 5.03% |
Refinancing of loan, number of extension options | 2 |
Refinancing of loan, extension option term in years | 1 year |
Equity Method Investments | Brunswick Associates | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 10 years |
Equity Method Investments | Brunswick Associates | Fixed rate for initial six months | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, interest rate | 1.50% |
Equity Method Investments | Brunswick Associates | Fixed rate commencing July 1, 2015 through December 31, 2024 | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, interest rate | 3.64% |
Minimum | Arlington Medical Properties | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 3 years |
Maximum | Arlington Medical Properties | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 10 years |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Quarterly_Results_Detail
Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Revenues | $15,923 | [1] | $15,258 | [1] | $14,317 | [1] | $14,288 | [1] | $13,445 | [2] | $13,448 | [2] | $13,502 | [2] | $13,885 | [2] | $59,786 | [1] | $54,280 | [2] | |
Net income before gains | 3,185 | [1] | 3,048 | [1] | 3,408 | [1] | 3,458 | [1] | 13,099 | [1] | |||||||||||
Gain on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 25,093 | [1] | 316 | [1] | 25,409 | [1] | 0 | 0 | |||||||||||||
Gain on divestiture of real property | 13,043 | [1] | 13,043 | [1] | 0 | 0 | |||||||||||||||
Net income | $16,228 | [1] | $28,141 | [1] | $3,408 | [1] | $3,774 | [1] | $3,498 | [2] | $3,303 | [2] | $2,941 | [2] | $3,427 | [2] | $51,551 | [1] | $13,169 | [2] | $19,477 |
Total basic earnings per share | $1.24 | [1] | $2.18 | [1] | $0.26 | [1] | $0.29 | [1] | $0.27 | [2] | $0.26 | [2] | $0.23 | [2] | $0.27 | [2] | $3.99 | [1] | $1.04 | [2] | $1.54 |
Total diluted earnings per share | $1.24 | [1] | $2.18 | [1] | $0.26 | [1] | $0.29 | [1] | $0.27 | [2] | $0.26 | [2] | $0.23 | [2] | $0.27 | [2] | $3.99 | [1] | $1.04 | [2] | $1.54 |
[1] | We began to account for Palmdale Medical Properties and Sparks Medical Properties on a consolidated basis effective January 1, 2014. Additionally, we began to account for six LLCs (Desert Valley Medical Center, Santa Fe Professional Plaza, Rosenberg Children's Medical Plaza, Sierra San Antonio Medical Plaza, Phoenix Children's East Valley Care Center and 3811 E. Bell Medical Building Medical Plaza) on a consolidated basis as of August 1, 2014. | ||||||||||||||||||||
[2] | We began reflecting the operating results for Palmdale Medical Plaza on an unconsolidated basis pursuant to the equity method as of July 1, 2013. Prior to July 1, 2013, the financial results of this entity were recorded on a consolidated basis. The revenues for the first and second quarters of 2013, as reflected above, include the revenue for Palmdale Medical Plaza. There was no material impact to our net income as a result of the deconsolidation of this property. |
Schedule_III_Real_Estate_and_A
Schedule III Real Estate and Accumulated Depreciation (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | $122,882 | [1] | |||
Initial Cost, Land | 33,768 | ||||
Initial Cost, Building & Improvements | 401,899 | ||||
Adjustments to Basis | 49,730 | [2] | |||
Land | 35,584 | ||||
Buildings and Improvements | 449,813 | ||||
CIP | 1,192 | ||||
Total | 486,589 | 395,669 | 401,474 | 363,498 | |
Accumulated Depreciation | 106,480 | 97,921 | |||
Inland Valley Regional Medical Center Wildomar, California | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 2,050 | ||||
Initial Cost, Building & Improvements | 10,701 | ||||
Adjustments to Basis | 14,596 | [2] | |||
Land | 2,050 | ||||
Buildings and Improvements | 25,297 | ||||
Total | 27,347 | ||||
Accumulated Depreciation | 11,175 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2007 | ||||
Date Acquired | 1986 | ||||
Average Depreciable Life | 43 years | ||||
McAllen Medical Center McAllen, Texas | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 4,720 | ||||
Initial Cost, Building & Improvements | 31,442 | ||||
Adjustments to Basis | 10,189 | [2] | |||
Land | 6,281 | ||||
Buildings and Improvements | 40,070 | ||||
Total | 46,351 | ||||
Accumulated Depreciation | 24,385 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1994 | ||||
Date Acquired | 1986 | ||||
Average Depreciable Life | 42 years | ||||
Wellington Regional Medical Center West Palm Beach, Florida | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,190 | ||||
Initial Cost, Building & Improvements | 14,652 | ||||
Adjustments to Basis | 17,370 | [2] | |||
Land | 1,663 | ||||
Buildings and Improvements | 31,549 | ||||
Total | 33,212 | ||||
Accumulated Depreciation | 16,258 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | ||||
Date Acquired | 1986 | ||||
Average Depreciable Life | 42 years | ||||
HealthSouth Deaconess Rehabilitation Hospital Evansville, Indiana | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 500 | ||||
Initial Cost, Building & Improvements | 6,945 | ||||
Adjustments to Basis | 1,062 | [2] | |||
Land | 500 | ||||
Buildings and Improvements | 8,007 | ||||
Total | 8,507 | ||||
Accumulated Depreciation | 5,069 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1993 | ||||
Date Acquired | 1989 | ||||
Average Depreciable Life | 40 years | ||||
Kindred Hospital Chicago Central Chicago, Illinois | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 158 | ||||
Initial Cost, Building & Improvements | 6,404 | ||||
Adjustments to Basis | 1,838 | [2] | |||
Land | 158 | ||||
Buildings and Improvements | 8,242 | ||||
Total | 8,400 | ||||
Accumulated Depreciation | 8,242 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1993 | ||||
Date Acquired | 1986 | ||||
Average Depreciable Life | 25 years | ||||
Family Doctor's Medical Office Building Shreveport, Louisiana | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 54 | ||||
Initial Cost, Building & Improvements | 1,526 | ||||
Adjustments to Basis | 494 | [2] | |||
Land | 54 | ||||
Buildings and Improvements | 2,020 | ||||
Total | 2,074 | ||||
Accumulated Depreciation | 902 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1991 | ||||
Date Acquired | 1995 | ||||
Average Depreciable Life | 45 years | ||||
Kelsey-Seybold Clinic at King's Crossing | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 439 | ||||
Initial Cost, Building & Improvements | 1,618 | ||||
Adjustments to Basis | 870 | [2] | |||
Land | 439 | ||||
Buildings and Improvements | 2,488 | ||||
Total | 2,927 | ||||
Accumulated Depreciation | 1,091 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1995 | ||||
Date Acquired | 1995 | ||||
Average Depreciable Life | 45 years | ||||
Professional Buildings at King's Crossing Kingwood, Texas | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 439 | ||||
Initial Cost, Building & Improvements | 1,837 | ||||
Adjustments to Basis | 185 | [2] | |||
Land | 439 | ||||
Buildings and Improvements | 2,022 | ||||
CIP | 3 | ||||
Total | 2,464 | ||||
Accumulated Depreciation | 889 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1995 | ||||
Date Acquired | 1995 | ||||
Average Depreciable Life | 45 years | ||||
Chesterbrook Academy Audubon, Pennsylvania | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 307 | ||||
Initial Cost, Building & Improvements | 996 | ||||
Land | 307 | ||||
Buildings and Improvements | 996 | ||||
Total | 1,303 | ||||
Accumulated Depreciation | 413 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1996 | ||||
Date Acquired | 1996 | ||||
Average Depreciable Life | 45 years | ||||
Chesterbrook Academy New Britain, Pennsylvania | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 250 | ||||
Initial Cost, Building & Improvements | 744 | ||||
Land | 250 | ||||
Buildings and Improvements | 744 | ||||
Total | 994 | ||||
Accumulated Depreciation | 309 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1991 | ||||
Date Acquired | 1996 | ||||
Average Depreciable Life | 45 years | ||||
Chesterbrook Academy Uwchlan, Pennsylvania | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 180 | ||||
Initial Cost, Building & Improvements | 815 | ||||
Land | 180 | ||||
Buildings and Improvements | 815 | ||||
Total | 995 | ||||
Accumulated Depreciation | 338 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1992 | ||||
Date Acquired | 1996 | ||||
Average Depreciable Life | 45 years | ||||
Chesterbrook Academy Newtown, Pennsylvania | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 195 | ||||
Initial Cost, Building & Improvements | 749 | ||||
Land | 195 | ||||
Buildings and Improvements | 749 | ||||
Total | 944 | ||||
Accumulated Depreciation | 311 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1992 | ||||
Date Acquired | 1996 | ||||
Average Depreciable Life | 45 years | ||||
The Southern Crescent Center I | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,130 | [3] | |||
Initial Cost, Building & Improvements | 5,092 | [3] | |||
Adjustments to Basis | -2,271 | [2],[3] | |||
Land | 1,130 | [3] | |||
Buildings and Improvements | 2,821 | [3] | |||
Total | 3,951 | [3] | |||
Accumulated Depreciation | 2,269 | [3] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 1994 | [3] | |||
Date Acquired | 1996 | [3] | |||
Average Depreciable Life | 45 years | [3] | |||
The Southern Crescent Center II Riverdale, Georgia | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Adjustments to Basis | 5,015 | [2],[3] | |||
Land | 806 | [3] | |||
Buildings and Improvements | 4,209 | [3] | |||
Total | 5,015 | [3] | |||
Accumulated Depreciation | 1,943 | [3] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2000 | [3] | |||
Date Acquired | 1998 | [3] | |||
Average Depreciable Life | 35 years | [3] | |||
The Cypresswood Professional Center Spring,Texas | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 573 | ||||
Initial Cost, Building & Improvements | 3,842 | ||||
Adjustments to Basis | 585 | [2] | |||
Land | 573 | ||||
Buildings and Improvements | 4,427 | ||||
CIP | 53 | ||||
Total | 5,053 | ||||
Accumulated Depreciation | 2,398 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1997 | ||||
Date Acquired | 1997 | ||||
Average Depreciable Life | 35 years | ||||
701 South Tonopah Building Las Vegas, Nevada | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Building & Improvements | 1,579 | ||||
Adjustments to Basis | 68 | [2] | |||
Buildings and Improvements | 1,647 | ||||
Total | 1,647 | ||||
Accumulated Depreciation | 931 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 1999 | ||||
Date Acquired | 1999 | ||||
Average Depreciable Life | 25 years | ||||
Sheffield Medical Building Atlanta, Georgia | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,760 | [4] | |||
Initial Cost, Building & Improvements | 9,766 | [4] | |||
Adjustments to Basis | -7,327 | [2],[4] | |||
Land | 736 | [4] | |||
Buildings and Improvements | 3,463 | [4] | |||
CIP | 1 | [4] | |||
Total | 4,200 | [4] | |||
Accumulated Depreciation | 1,348 | [4] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 1999 | [4] | |||
Date Acquired | 1999 | [4] | |||
Average Depreciable Life | 25 years | [4] | |||
Medical Center of Western Connecticut Danbury, Connecticut | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 4,785 | [1] | |||
Initial Cost, Land | 1,151 | ||||
Initial Cost, Building & Improvements | 5,176 | ||||
Adjustments to Basis | 544 | [2] | |||
Land | 1,151 | ||||
Buildings and Improvements | 5,720 | ||||
Total | 6,871 | ||||
Accumulated Depreciation | 2,899 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2000 | ||||
Date Acquired | 2000 | ||||
Average Depreciable Life | 30 years | ||||
Vibra Hospital of Corpus Christi Corpus Christi, Texas | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 2,902 | [1] | |||
Initial Cost, Land | 1,104 | ||||
Initial Cost, Building & Improvements | 5,508 | ||||
Land | 1,104 | ||||
Buildings and Improvements | 5,508 | ||||
Total | 6,612 | ||||
Accumulated Depreciation | 1,085 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2008 | ||||
Date Acquired | 2008 | ||||
Average Depreciable Life | 35 years | ||||
Apache Junction Medical Plaza Apache Junction, AZ | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 240 | [5] | |||
Initial Cost, Building & Improvements | 3,590 | [5] | |||
Adjustments to Basis | 621 | [2],[5] | |||
Land | 240 | [5] | |||
Buildings and Improvements | 4,211 | [5] | |||
CIP | 1 | [5] | |||
Total | 4,452 | [5] | |||
Accumulated Depreciation | 479 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2004 | [5] | |||
Date Acquired | 2004 | [5] | |||
Average Depreciable Life | 30 years | [5] | |||
Auburn Medical Office Building II Auburn, WA | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 7,183 | [1],[5] | |||
Initial Cost, Building & Improvements | 10,200 | [5] | |||
Adjustments to Basis | 176 | [2],[5] | |||
Buildings and Improvements | 10,376 | [5] | |||
Total | 10,376 | [5] | |||
Accumulated Depreciation | 1,034 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2009 | [5] | |||
Date Acquired | 2009 | [5] | |||
Average Depreciable Life | 36 years | [5] | |||
BRB Medical Office Building Kingwood, Texas | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 6,673 | [1],[5] | |||
Initial Cost, Land | 430 | [5] | |||
Initial Cost, Building & Improvements | 8,970 | [5] | |||
Adjustments to Basis | 24 | [2],[5] | |||
Land | 430 | [5] | |||
Buildings and Improvements | 8,994 | [5] | |||
CIP | 4 | [5] | |||
Total | 9,428 | [5] | |||
Accumulated Depreciation | 885 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2010 | [5] | |||
Date Acquired | 2010 | [5] | |||
Average Depreciable Life | 37 years | [5] | |||
Centennial Hills Medical Office Building Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 10,642 | [1],[5] | |||
Initial Cost, Building & Improvements | 19,890 | [5] | |||
Adjustments to Basis | 804 | [2],[5] | |||
Buildings and Improvements | 20,694 | [5] | |||
CIP | 116 | [5] | |||
Total | 20,810 | [5] | |||
Accumulated Depreciation | 2,154 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | [5] | |||
Date Acquired | 2006 | [5] | |||
Average Depreciable Life | 34 years | [5] | |||
Desert Springs Medical Plaza Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,200 | [5] | |||
Initial Cost, Building & Improvements | 9,560 | [5] | |||
Adjustments to Basis | 443 | [2],[5] | |||
Land | 1,200 | [5] | |||
Buildings and Improvements | 10,003 | [5] | |||
CIP | 144 | [5] | |||
Total | 11,347 | [5] | |||
Accumulated Depreciation | 1,212 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 1998 | [5] | |||
Date Acquired | 1998 | [5] | |||
Average Depreciable Life | 30 years | [5] | |||
700 Shadow Lane & Goldring MOBs Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 6,601 | [1],[5] | |||
Initial Cost, Land | 400 | [5] | |||
Initial Cost, Building & Improvements | 11,300 | [5] | |||
Adjustments to Basis | 1,141 | [2],[5] | |||
Land | 400 | [5] | |||
Buildings and Improvements | 12,441 | [5] | |||
CIP | 155 | [5] | |||
Total | 12,996 | [5] | |||
Accumulated Depreciation | 1,430 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2003 | [5] | |||
Date Acquired | 2003 | [5] | |||
Average Depreciable Life | 30 years | [5] | |||
Spring Valley Hospital MOB I Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 4,920 | [1],[5] | |||
Initial Cost, Building & Improvements | 9,500 | [5] | |||
Adjustments to Basis | 338 | [2],[5] | |||
Buildings and Improvements | 9,838 | [5] | |||
CIP | 36 | [5] | |||
Total | 9,874 | [5] | |||
Accumulated Depreciation | 1,029 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2004 | [5] | |||
Date Acquired | 2004 | [5] | |||
Average Depreciable Life | 35 years | [5] | |||
Spring Valley Hospital MOB II Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Building & Improvements | 9,800 | [5] | |||
Adjustments to Basis | 8 | [2],[5] | |||
Buildings and Improvements | 9,808 | [5] | |||
CIP | 202 | [5] | |||
Total | 10,010 | [5] | |||
Accumulated Depreciation | 1,031 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | [5] | |||
Date Acquired | 2006 | [5] | |||
Average Depreciable Life | 34 years | [5] | |||
Summerlin Hospital MOB Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 460 | [5] | |||
Initial Cost, Building & Improvements | 15,440 | [5] | |||
Adjustments to Basis | 512 | [2],[5] | |||
Land | 460 | [5] | |||
Buildings and Improvements | 15,952 | [5] | |||
CIP | 43 | [5] | |||
Total | 16,455 | [5] | |||
Accumulated Depreciation | 1,889 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 1999 | [5] | |||
Date Acquired | 1999 | [5] | |||
Average Depreciable Life | 30 years | [5] | |||
Summerlin Hospital MOB II Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 11,729 | [1],[5] | |||
Initial Cost, Land | 370 | [5] | |||
Initial Cost, Building & Improvements | 16,830 | [5] | |||
Adjustments to Basis | 851 | [2],[5] | |||
Land | 370 | [5] | |||
Buildings and Improvements | 17,681 | [5] | |||
CIP | 43 | [5] | |||
Total | 18,094 | [5] | |||
Accumulated Depreciation | 2,040 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2000 | [5] | |||
Date Acquired | 2000 | [5] | |||
Average Depreciable Life | 30 years | [5] | |||
Summerlin Hospital MOB III Las Vegas, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 11,025 | [1],[5] | |||
Initial Cost, Building & Improvements | 14,900 | [5] | |||
Adjustments to Basis | 1,459 | [2],[5] | |||
Buildings and Improvements | 16,359 | [5] | |||
CIP | 32 | [5] | |||
Total | 16,391 | [5] | |||
Accumulated Depreciation | 1,581 | [5] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2009 | [5] | |||
Date Acquired | 2009 | [5] | |||
Average Depreciable Life | 36 years | [5] | |||
Emory at Dunwoody Building Dunwoody, GA | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 782 | ||||
Initial Cost, Building & Improvements | 3,455 | ||||
Land | 782 | ||||
Buildings and Improvements | 3,455 | ||||
Total | 4,237 | ||||
Accumulated Depreciation | 395 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | ||||
Date Acquired | 2011 | ||||
Average Depreciable Life | 35 years | ||||
Forney Medical Plaza Forney, TX | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 910 | ||||
Initial Cost, Building & Improvements | 11,960 | ||||
Adjustments to Basis | 31 | [2] | |||
Land | 910 | ||||
Buildings and Improvements | 11,991 | ||||
Total | 12,901 | ||||
Accumulated Depreciation | 1,621 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | ||||
Date Acquired | 2011 | ||||
Average Depreciable Life | 35 years | ||||
Lake Pointe Medical Arts Building Rowlett, TX | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,100 | ||||
Initial Cost, Building & Improvements | 9,000 | ||||
Adjustments to Basis | 31 | [2] | |||
Land | 1,100 | ||||
Buildings and Improvements | 9,031 | ||||
Total | 10,131 | ||||
Accumulated Depreciation | 1,077 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | ||||
Date Acquired | 2011 | ||||
Average Depreciable Life | 35 years | ||||
Tuscan Professional Building Irving, TX | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 5,862 | [1] | |||
Initial Cost, Land | 1,100 | ||||
Initial Cost, Building & Improvements | 12,525 | ||||
Adjustments to Basis | 73 | [2] | |||
Land | 1,100 | ||||
Buildings and Improvements | 12,598 | ||||
Total | 13,698 | ||||
Accumulated Depreciation | 1,299 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2011 | ||||
Date Acquired | 2011 | ||||
Average Depreciable Life | 35 years | ||||
Peace Health Medical Clinic | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 21,248 | [1] | |||
Initial Cost, Land | 1,900 | ||||
Initial Cost, Building & Improvements | 24,910 | ||||
Land | 1,900 | ||||
Buildings and Improvements | 24,910 | ||||
Total | 26,810 | ||||
Accumulated Depreciation | 2,554 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2012 | ||||
Date Acquired | 2012 | ||||
Average Depreciable Life | 35 years | ||||
Northwest Texas Professional Office Tower | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Building & Improvements | 7,180 | ||||
Buildings and Improvements | 7,180 | ||||
Total | 7,180 | ||||
Accumulated Depreciation | 485 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2012 | ||||
Date Acquired | 2012 | ||||
Average Depreciable Life | 35 years | ||||
Ward Eagle Office Village Medical Office Building | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 220 | ||||
Initial Cost, Building & Improvements | 3,220 | ||||
Land | 220 | ||||
Buildings and Improvements | 3,220 | ||||
Total | 3,440 | ||||
Accumulated Depreciation | 165 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2013 | ||||
Date Acquired | 2013 | ||||
Average Depreciable Life | 35 years | ||||
5004 Poole Road MOB Office building | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 96 | ||||
Initial Cost, Building & Improvements | 529 | ||||
Land | 96 | ||||
Buildings and Improvements | 529 | ||||
Total | 625 | ||||
Accumulated Depreciation | 28 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2013 | ||||
Date Acquired | 2013 | ||||
Average Depreciable Life | 35 years | ||||
Desert Valley Medical Center, Phoenix, AZ | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 3,861 | [1],[6] | |||
Initial Cost, Land | 2,280 | [6] | |||
Initial Cost, Building & Improvements | 4,624 | [6] | |||
Land | 2,280 | [6] | |||
Buildings and Improvements | 4,624 | [6] | |||
CIP | 26 | [6] | |||
Total | 6,930 | [6] | |||
Accumulated Depreciation | 74 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 1996 | [6] | |||
Date Acquired | 1996 | [6] | |||
Average Depreciable Life | 30 years | [6] | |||
Hanover Emergency Center, Mechanicsville, VA | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,300 | ||||
Initial Cost, Building & Improvements | 6,224 | ||||
Land | 1,300 | ||||
Buildings and Improvements | 6,224 | ||||
Total | 7,524 | ||||
Accumulated Depreciation | 72 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2014 | ||||
Date Acquired | 2014 | ||||
Average Depreciable Life | 35 years | ||||
North Valley Medical Plaza, Phoenix, AZ | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 930 | [6] | |||
Initial Cost, Building & Improvements | 6,929 | [6] | |||
Land | 930 | [6] | |||
Buildings and Improvements | 6,929 | [6] | |||
Total | 7,859 | [6] | |||
Accumulated Depreciation | 111 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2010 | [6] | |||
Date Acquired | 2010 | [6] | |||
Average Depreciable Life | 30 years | [6] | |||
Northwest Medical Center at Sugar Creek, Bentonville, AR | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,100 | ||||
Initial Cost, Building & Improvements | 2,870 | ||||
Land | 1,100 | ||||
Buildings and Improvements | 2,870 | ||||
Total | 3,970 | ||||
Accumulated Depreciation | 78 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2014 | ||||
Date Acquired | 2014 | ||||
Average Depreciable Life | 35 years | ||||
The Children's Clinic at Springdale, Springdale, AR | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 610 | ||||
Initial Cost, Building & Improvements | 1,570 | ||||
Land | 610 | ||||
Buildings and Improvements | 1,570 | ||||
Total | 2,180 | ||||
Accumulated Depreciation | 66 | ||||
Date of Completion of Construction, Acquisition or Significant Improvement | 2014 | ||||
Date Acquired | 2014 | ||||
Average Depreciable Life | 35 years | ||||
Rosenberg Children's Medical Plaza, Phoenix, AZ | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 8,479 | [1],[6] | |||
Initial Cost, Land | 0 | [6] | |||
Initial Cost, Building & Improvements | 23,302 | [6] | |||
Land | 0 | [6] | |||
Buildings and Improvements | 23,302 | [6] | |||
Total | 23,302 | [6] | |||
Accumulated Depreciation | 327 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2001 | [6] | |||
Date Acquired | 2001 | [6] | |||
Average Depreciable Life | 35 years | [6] | |||
Phoenix Children's East Valley Care Center, Phoenix, AZ | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 6,485 | [1],[6] | |||
Initial Cost, Land | 1,050 | [6] | |||
Initial Cost, Building & Improvements | 10,900 | [6] | |||
Land | 1,050 | [6] | |||
Buildings and Improvements | 10,900 | [6] | |||
Total | 11,950 | [6] | |||
Accumulated Depreciation | 152 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | [6] | |||
Date Acquired | 2006 | [6] | |||
Average Depreciable Life | 35 years | [6] | |||
Palmdale Medical Plaza, Palmdale, CA | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 6,008 | [1],[6] | |||
Initial Cost, Land | 0 | [6] | |||
Initial Cost, Building & Improvements | 10,555 | [6] | |||
Land | 0 | [6] | |||
Buildings and Improvements | 10,555 | [6] | |||
CIP | 48 | [6] | |||
Total | 10,603 | [6] | |||
Accumulated Depreciation | 372 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2008 | [6] | |||
Date Acquired | 2008 | [6] | |||
Average Depreciable Life | 33 years 6 months | [6] | |||
Santa Fe Professional Plaza, Scottsdale, AZ | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 1,090 | [6] | |||
Initial Cost, Building & Improvements | 1,960 | [6] | |||
Land | 1,090 | [6] | |||
Buildings and Improvements | 1,960 | [6] | |||
CIP | 109 | [6] | |||
Total | 3,159 | [6] | |||
Accumulated Depreciation | 31 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 1999 | [6] | |||
Date Acquired | 1999 | [6] | |||
Average Depreciable Life | 30 years | [6] | |||
Sierra San Antonio Medical Plaza, Fontana, CA | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Initial Cost, Land | 0 | [6] | |||
Initial Cost, Building & Improvements | 11,538 | [6] | |||
Land | 0 | [6] | |||
Buildings and Improvements | 11,538 | [6] | |||
Total | 11,538 | [6] | |||
Accumulated Depreciation | 184 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2006 | [6] | |||
Date Acquired | 2006 | [6] | |||
Average Depreciable Life | 30 years | [6] | |||
Vista Medical Terrace & Sparks MOB, Sparks, NV | |||||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrance | 4,479 | [1],[6] | |||
Initial Cost, Land | 0 | [6] | |||
Initial Cost, Building & Improvements | 9,276 | [6] | |||
Land | 0 | [6] | |||
Buildings and Improvements | 9,276 | [6] | |||
CIP | 176 | [6] | |||
Total | 9,452 | [6] | |||
Accumulated Depreciation | $370 | [6] | |||
Date of Completion of Construction, Acquisition or Significant Improvement | 2008 | [6] | |||
Date Acquired | 2008 | [6] | |||
Average Depreciable Life | 30 years | [6] | |||
[1] | Consists of outstanding balances as of December 31, 2014 on third-party debt that is non-recourse to us. | ||||
[2] | Costs capitalized/divested subsequent to acquisition. | ||||
[3] | During 2008, a $4.6 million provision for asset impairment was recorded in connection with the real estate assets of Southern Crescent Center I & Southern Crescent Center II. | ||||
[4] | During 2011, a $5.4 million provision for asset impairment was recorded in connection with the real estate assets of Sheffield Medical Building. | ||||
[5] | During 2011, we purchased the third-party minority interests in these properties in which we previously held noncontrolling majority owned interests. Since that time, these properties are wholly-owned. | ||||
[6] | During 2014, we purchased the third-party minority interests in these properties in which we previously held noncontrolling majority owned interests. Since that time, these properties are wholly-owned. |
Schedule_III_Real_Estate_and_A1
Schedule III Real Estate and Accumulated Depreciation (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2008 |
Real Estate and Accumulated Depreciation [Line Items] | ||
Provision for asset impairment | $5.40 | $4.60 |
Reconciliation_of_Real_Estate_
Reconciliation of Real Estate Properties and Accumulated Depreciation (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Real Estate and Accumulated Depreciation [Line Items] | |||||
Beginning balance | $395,669 | $401,474 | $363,498 | ||
Impact of deconsolidation of an LLC | -13,185 | [1] | |||
Impact of consolidation of eight LLC | 84,064 | [2] | |||
Property additions | 3,298 | 3,415 | 3,985 | ||
Acquisitions | 13,674 | 4,065 | 33,991 | ||
Disposals | -10,116 | -100 | |||
Ending balance | 486,589 | 395,669 | 401,474 | ||
Beginning balance | 97,921 | 87,088 | 74,865 | ||
Impact of deconsolidation of an LLC | -1,588 | [1] | |||
Disposals | -5,859 | ||||
Current year depreciation expense | 14,413 | 12,464 | 12,223 | ||
Other | 5 | -43 | |||
Ending balance | $106,480 | $97,921 | $87,088 | ||
[1] | The master lease with a wholly-owned subsidiary of UHS related to Palmdale Medical Properties expired effective as of July 1, 2013 and, as of that date, we began accounting for Palmdale Medical Properties on an unconsolidated basis under the equity method. | ||||
[2] | During 2014, the Trust purchased the minority ownership interests held by third-party members in eight LLCs (January and August, 2014) in which we previously held noncontrolling majority ownership interests. As a result of these minority ownership purchases, the Trust and our subsidiaries now own 100% of each of these LLCs and the financial results are included in our consolidated financial statements. |