Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | UHT | |
Entity Registrant Name | UNIVERSAL HEALTH REALTY INCOME TRUST | |
Entity Central Index Key | 798783 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,302,259 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Revenues: | ||||
Base rental - UHS facilities | $3,906 | $3,914 | ||
Base rental - Non-related parties | 8,869 | 7,226 | ||
Bonus rental - UHS facilities | 1,218 | 1,150 | ||
Tenant reimbursements and other - Non-related parties | 2,009 | 1,833 | ||
Tenant reimbursements and other - UHS facilities | 200 | 165 | ||
Revenues, Total | 16,202 | 14,288 | ||
Expenses: | ||||
Depreciation and amortization | 5,523 | 4,826 | ||
Advisory fees to UHS | 666 | 610 | ||
Other operating expenses | 4,722 | 3,933 | ||
Transaction costs | 57 | 62 | ||
Costs and Expenses, Total | 10,968 | 9,431 | ||
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense and gains | 5,234 | 4,857 | ||
Equity in income of unconsolidated LLCs | 592 | [1] | 593 | [1],[2] |
Gains on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 0 | 316 | ||
Interest expense, net | -2,130 | -1,992 | ||
Net income | $3,696 | $3,774 | ||
Basic earnings per share | $0.28 | $0.29 | ||
Diluted earnings per share | $0.28 | $0.29 | ||
Weighted average number of shares outstanding - Basic | 13,283 | 12,848 | ||
Weighted average number of share equivalents | 11 | 6 | ||
Weighted average number of shares and equivalents outstanding - Diluted | 13,294 | 12,854 | ||
[1] | Our share of net income for the three months ended March 31, 2014 includes interest income earned by us on various advances made to LLCs of approximately $352,000. There were no advances outstanding during the first quarter of 2015, therefore there was no interest income earned by us for the three months ended March 31, 2015. | |||
[2] | As mentioned above, we began to account for six LLCs 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 three months ended March 31, 2014, include the financial results of the six mentioned LLCs. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $3,696 | $3,774 |
Other comprehensive (loss)/income: | ||
Unrealized derivative (losses)/gains on interest rate caps | -61 | 3 |
Amortization of interest rate cap fees | 23 | 15 |
Total other comprehensive(loss)/ income: | -38 | 18 |
Total comprehensive income | $3,658 | $3,792 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real Estate Investments: | ||
Buildings and improvements | $465,973 | $451,005 |
Accumulated depreciation | -110,518 | -106,480 |
Real Estate Investment Property, Net, Total | 355,455 | 344,525 |
Land | 38,774 | 35,584 |
Net Real Estate Investments | 394,229 | 380,109 |
Investments in limited liability companies ("LLCs"), net | 7,945 | 8,605 |
Other Assets: | ||
Cash and cash equivalents | 3,951 | 3,861 |
Base and bonus rent receivable from UHS | 2,149 | 2,086 |
Rent receivable - other | 4,350 | 4,219 |
Intangible assets (net of accumulated amortization of $21.0 million and $19.7 million at March 31, 2015 and December 31, 2014, respectively) | 22,263 | 23,123 |
Deferred charges and other assets, net | 6,719 | 6,863 |
Total Assets | 441,606 | 428,866 |
Liabilities: | ||
Line of credit borrowings | 116,000 | 89,750 |
Mortgage and other notes payable, non-recourse to us (including net debt premium of $468,000 and $523,000 at March 31, 2015 and December 31, 2014, respectively) | 117,607 | 123,405 |
Accrued interest | 497 | 545 |
Accrued expenses and other liabilities | 5,352 | 8,522 |
Tenant reserves, escrows, deposits and prepaid rents | 2,199 | 2,063 |
Total Liabilities | 241,655 | 224,285 |
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: 2015 - 13,302,241 2014 -13,301,204 | 133 | 133 |
Capital in excess of par value | 240,993 | 240,835 |
Cumulative net income | 535,291 | 531,595 |
Cumulative dividends | -576,340 | -567,894 |
Accumulated other comprehensive loss | -126 | -88 |
Total Equity | 199,951 | 204,581 |
Total Liabilities and Equity | $441,606 | $428,866 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Intangible assets, accumulated amortization | $21,000,000 | $19,700,000 |
Mortgage and other notes payable, non-recourse to us, debt premium | $468,000 | $523,000 |
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 | 13,302,241 | 13,301,204 |
Common shares, outstanding | 13,302,241 | 13,301,204 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $3,696,000 | $3,774,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,545,000 | 4,849,000 |
Amortization of debt premium | -57,000 | -104,000 |
Stock-based compensation expense | 101,000 | 96,000 |
Gains on purchase of minority interests in majority-owned LLCs | 0 | -316,000 |
Income in excess of cash distributions from LLCs | -64,000 | 0 |
Changes in assets and liabilities: | ||
Rent receivable | -194,000 | -143,000 |
Accrued expenses and other liabilities | -658,000 | -1,129,000 |
Tenant reserves, escrows, deposits and prepaid rents | 136,000 | 51,000 |
Accrued interest | -48,000 | 2,000 |
Other, net | -228,000 | -114,000 |
Net cash provided by operating activities | 8,229,000 | 6,966,000 |
Cash flows from investing activities: | ||
Investments in LLCs | -321,000 | -442,000 |
Cash distributions in excess of income from LLCs | 0 | 406,000 |
Cash distribution of refinancing proceeds from LLCs | 1,045,000 | 0 |
Additions to real estate investments, net | -2,168,000 | -641,000 |
Net cash paid for acquisition of properties | -16,765,000 | -7,050,000 |
Cash paid to acquire minority interests in majority-owned LLCs | -2,250,000 | -170,000 |
Net cash used in investing activities | -20,459,000 | -7,897,000 |
Cash flows from financing activities: | ||
Net borrowings on line of credit | 26,250,000 | 7,550,000 |
Repayments of mortgages and other notes payable | -5,743,000 | -796,000 |
Financing costs paid | -913,000 | 0 |
Dividends paid | -8,446,000 | -8,050,000 |
Issuance of shares of beneficial interest, net | 1,172,000 | 2,477,000 |
Net cash provided by financing activities | 12,320,000 | 1,181,000 |
Increase in cash and cash equivalents | 90,000 | 250,000 |
Increase in cash due to recording of LLCs on a consolidated basis | 0 | 257,000 |
Cash and cash equivalents, beginning of period | 3,861,000 | 3,337,000 |
Cash and cash equivalents, end of period | 3,951,000 | 3,844,000 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 2,115,000 | 1,980,000 |
Supplemental disclosures of non-cash transactions: | ||
Cash paid for purchase of minority interests in majority-owned LLCs | 2,250,000 | 170,000 |
Consolidation of LLC | ||
Cash flows from investing activities: | ||
Cash paid to acquire minority interests in majority-owned LLCs | 0 | -170,000 |
Supplemental disclosures of non-cash transactions: | ||
Net real estate investments | 0 | 19,489,000 |
Cash and cash equivalents | 0 | 257,000 |
Intangible assets | 0 | 2,820,000 |
Rent receivable - other | 0 | 330,000 |
Deferred charges, goodwill and other assets, net | 0 | 46,000 |
Investment in LLCs | 0 | -11,392,000 |
Mortgage and other notes payable, non-recourse to us | 0 | -10,726,000 |
Accrued interest | 0 | -33,000 |
Accrued expenses and other liabilities | 0 | -248,000 |
Tenant reserves, escrows, deposits and prepaid rents | 0 | -57,000 |
Note payable to previous third party member | 0 | 0 |
Gains on purchases of minority interests in majority-owned LLCs | 0 | -316,000 |
Cash paid for purchase of minority interests in majority-owned LLCs | $0 | $170,000 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
General | (1) General |
This Quarterly Report on Form 10-Q is for the quarter ended March 31, 2015. In this Quarterly Report, “we,” “us,” “our” and the “Trust” refer to Universal Health Realty Income Trust and its subsidiaries. | |
In this Quarterly Report on Form 10-Q, the term “revenues” does not include the revenues of the unconsolidated limited liability companies (“LLCs”) in which we have various non-controlling equity interests ranging from 33% to 95%. As of March 31, 2015, we had investments in five jointly-owned LLCs which own medical office buildings, all of which are accounted for by the equity method (see Note 5). These LLCs are included in our financial statements for all periods presented on an unconsolidated basis since they are not variable interest entities for which we are the primary beneficiary, nor do we hold a controlling voting interest. | |
The financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the SEC and reflect all normal and recurring adjustments which, in our opinion, are necessary to fairly present results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although we believe that the accompanying disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements, the notes thereto and accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2014. |
Relationship_with_Universal_He
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions | (2) Relationship with Universal Health Services, Inc. (“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. Most of the 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 facility 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. These 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 comprised approximately 25% and 29% of our consolidated revenues for the three months ended March 31, 2015 and 2014, respectively. 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% and 22% of the combined consolidated and unconsolidated revenue for the three months ended March 31, 2015 and 2014, respectively. In addition, thirteen medical office buildings (“MOBs”) and two free-standing emergency departments (“FEDs”), that are either wholly or jointly-owned by us, 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. 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. Additionally, 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. | |||||||||||||
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. 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. On December 31, 2014, The Bridgeway, a 103-bed behavioral health facility located in North Little Rock, Arkansas, was sold to UHS for $17.3 million. During each of the three years ended December 31, 2014, 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. | |||||||||||||
The table below details the existing lease terms and renewal options for our three acute care hospitals operated by wholly-owned subsidiaries of UHS: | |||||||||||||
Hospital Name | Annual | End of | Renewal | ||||||||||
Minimum | Lease Term | Term | |||||||||||
Rent | (years) | ||||||||||||
McAllen Medical Center | $ | 5,485,000 | December, 2016 | 15 | (a) | ||||||||
Wellington Regional Medical Center | $ | 3,030,000 | December, 2016 | 15 | (b) | ||||||||
Southwest Healthcare System, Inland Valley Campus | $ | 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). | ||||||||||||
During the first quarter of 2015, we purchased from wholly-owned subsidiaries of 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 is 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. These leases are cross-defaulted with one another. UHS has the option to purchase the leased properties upon the expiration of the fixed term and each five-year extended term at the fair market value at that time. The aggregate acquisition cost of these facilities was approximately $12.8 million, and the aggregate rental revenue earned by us at the commencement of the leases is approximately $900,000 annually. | |||||||||||||
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 and FED 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 these leases. | |||||||||||||
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. 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. | |||||||||||||
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 the first three months of 2015 or 2014 since the incentive fee requirements were not achieved. Advisory fees incurred and paid (or payable) to UHS amounted to $666,000 and $610,000 for the three months ended March 31, 2015 and 2014, respectively, and were based upon average invested real estate assets of $381 million, and $349 million for the three-month periods ended March 31, 2015 and 2014, respectively. | |||||||||||||
Officers and Employees: Our officers are all employees of a wholly-owned subsidiary of UHS and although as of March 31, 2015 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 special compensation awards in the form of restricted stock and/or cash bonuses. | |||||||||||||
Share Ownership: As of March 31, 2015 and December 31, 2014, UHS owned 5.9% of our outstanding shares of beneficial interest. | |||||||||||||
SEC reporting requirements of UHS: UHS is subject to the reporting requirements of the 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 25% and 29% of our consolidated revenues during the three month periods ended March 31, 2015 and 2014, respectively, 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. These filings are the sole responsibility of UHS and are not incorporated by reference herein. |
Dividends_and_Equity_Issuance_
Dividends and Equity Issuance Program | 3 Months Ended |
Mar. 31, 2015 | |
Dividends and Equity Issuance Program | (3) Dividends and Equity Issuance Program |
Dividends: | |
We declared and paid dividends of $8.4 million, or $.635 per share, during the first quarter of 2015 and $8.1 million, or $.625 per share, during the first quarter of 2014. | |
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. The common shares will be offered pursuant to the Registration Statement filed with the Securities and Exchange Commission, which became effective in November, 2012. | |
There were no shares issued pursuant to the ATM program during the first quarter of 2015. Since inception of this ATM program, we have issued 580,900 shares at an average price of $45.97 per share, which generated approximately $25.6 million of net proceeds (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). Included in the above was approximately $1.1 million of the net cash proceeds (net of approximately $29,000 of compensation to Merrill Lynch) related to shares issued in late December, 2014 which were received by us during the first quarter of 2015. |
Acquisitions_Dispositions_and_
Acquisitions, Dispositions and New Construction | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Acquisitions, Dispositions and New Construction | (4) Acquisitions, Dispositions and New Construction | |||
Three Months Ended March 31, 2015: | ||||
Acquisitions: | ||||
In February, 2015, we purchased the Haas Medical Office Park, 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 wholly-owned subsidiaries of 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 is 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. In connection with the lease agreements, the lessee shall have the option to purchase the leased property upon the expiration of the fixed term and each five-year extended term at the fair market value at that time. The aggregate acquisition cost of the FEDs was approximately $12.8 million, and the aggregate rental revenue earned by us at the commencement of the leases is approximately $900,000 annually. | ||||
Divestitures: | ||||
There were no divestitures during the first three months of 2015. | ||||
Three Months Ended March 31, 2014: | ||||
Acquisitions: | ||||
We paid an aggregate of $7.2 million to purchase the following in January, 2014 in a single transaction: | ||||
• | 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 16,700 square foot, multi-tenant medical office building located in Bentonville, Arkansas. | |||
Additionally, effective January 1, 2014, we paid an aggregate of $170,000 to purchase the 5% minority ownership interests held by third-party members in two LLCs in which we previously held noncontrolling, 95% majority ownership interests (Palmdale Medical Properties and Sparks Medical Properties). As a result of these minority ownership purchases, we now own 100% of each of these LLCs and began accounting for each property on a consolidated basis effective January 1, 2014. Pursuant to accounting standards, during the first quarter of 2014, we were required to record each property’s assets and liabilities at their fair values which resulted in the recording of a $316,000 non-cash gain, which is included in our Condensed Consolidated Statement of Income for the three months ended March 31, 2014, representing the difference between the fair values and the equity method carrying value of each investment. 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: | ||||
There were no divestitures during the first three months of 2014. |
Summarized_Financial_Informati
Summarized Financial Information of Equity Affiliates | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Summarized Financial Information of Equity Affiliates | (5) Summarized Financial Information of Equity Affiliates | ||||||||||
Our condensed 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 March 31, 2015, we have non-controlling equity investments or commitments in five jointly-owned LLCs which own MOBs. 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. | |||||||||||
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 March 31, 2015 and 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 $8.9 million, which is non-recourse to us, outstanding as of March 31, 2015. | ||||||||||
(b.) | We have funded $5.2 million in equity as of March 31, 2015 and are committed to invest an additional $1.2 million. This LLC has a third-party term loan of $23.1 million, which is non-recourse to us, outstanding as of March 31, 2015. | ||||||||||
(c.) | We have funded $2.7 million in equity as of March 31, 2015, and are committed to fund an additional $300,000. 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 $14.8 million, which is non-recourse to us, outstanding as of March 31, 2015 | ||||||||||
(d.) | We have committed to invest up to $2.5 million in equity and debt financing, of which $1.5 million has been funded as of March 31, 2015. This LLC has a third-party term loan of $5.5 million, which is non-recourse to us, outstanding as of March 31, 2015. | ||||||||||
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. | |||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | |||||||||
prior to | |||||||||||
minority | |||||||||||
interest | |||||||||||
purchase | |||||||||||
DVMC Properties | 90 | % | Desert Valley Medical Center | ||||||||
Santa Fe Scottsdale | 90 | % | Santa Fe Professional Plaza | ||||||||
PCH Medical Properties | 85 | % | Rosenberg Children’s Medical Plaza | ||||||||
Sierra Medical Properties | 95 | % | Sierra San Antonio Medical Plaza | ||||||||
PCH Southern Properties | 95 | % | Phoenix Children’s East Valley Care Center | ||||||||
3811 Bell Medical Properties | 95 | % | North Valley Medical Plaza | ||||||||
Below are the condensed combined statements of income (unaudited) for the LLCs accounted for under the equity method at March 31, 2015 and 2014. The combined statements of income for the three months ended March 31, 2014 include the financial results for the six LLCs that we began to account for on a consolidated basis as of August 1, 2014, as discussed above. | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
(amounts in thousands) | |||||||||||
2015 | 2014(b.) | ||||||||||
Revenues | $ | 3,585 | $ | 4,909 | |||||||
Operating expenses | 1,337 | 1,971 | |||||||||
Depreciation and amortization | 580 | 896 | |||||||||
Interest, net | 619 | 1,318 | |||||||||
Net income | $ | 1,049 | $ | 724 | |||||||
Our share of net income (a.) | $ | 592 | $ | 593 | |||||||
(a.) | Our share of net income for the three months ended March 31, 2014 includes interest income earned by us on various advances made to LLCs of approximately $352,000. There were no advances outstanding during the first quarter of 2015, therefore there was no interest income earned by us for the three months ended March 31, 2015. | ||||||||||
(b.) | As mentioned above, we began to account for six LLCs 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 three months ended March 31, 2014, include the financial results of the six mentioned LLCs. | ||||||||||
Below are the condensed combined balance sheets (unaudited) for the five above-mentioned LLCs in which we hold noncontrolling ownership interests and that were accounted for under the equity method as of March 31, 2015 and December 31, 2014: | |||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
(amounts in thousands) | |||||||||||
Net property, including CIP | $ | 61,971 | $ | 62,450 | |||||||
Other assets | 5,872 | 7,367 | |||||||||
Total assets | $ | 67,843 | $ | 69,817 | |||||||
Liabilities | $ | 2,453 | $ | 3,348 | |||||||
Mortgage notes payable, non-recourse to us | 52,383 | 52,728 | |||||||||
Equity | 13,007 | 13,741 | |||||||||
Total liabilities and equity | $ | 67,843 | $ | 69,817 | |||||||
Our share of equity in LLCs | $ | 7,945 | $ | 8,605 | |||||||
As of March 31, 2015, and 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): | |||||||||||
Mortgage Loan Balance (a.) | |||||||||||
Name of LLC | 3/31/15 | 12/31/14 | Maturity Date | ||||||||
Arlington Medical Properties (b.) | $ | 23,089 | $ | 23,287 | October, 2015 | ||||||
FTX MOB Phase II (c.) | 5,518 | 5,548 | August, 2017 | ||||||||
Grayson Properties (d.) | 14,836 | 14,893 | September, 2021 | ||||||||
Brunswick Associates (e.) | 8,940 | 9,000 | December, 2024 | ||||||||
$ | 52,383 | $ | 52,728 | ||||||||
(a.) | All mortgage loans, other than construction 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 a 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. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Pronouncements | (6) Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standard relating to the presentation of debt issuance costs. Under the new guidance, debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability. This amendment becomes effective for annual periods beginning on or after December 15, 2015, and interim periods beginning on or after December 15, 2015; however, early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the consolidation requirements in Accounting Standards Codification (“ASC”) 810, Consolidation. ASU 2015-02 makes targeted amendments to the current consolidation guidance, which could change consolidation conclusions. This guidance will be effective for us beginning in our first quarter of 2016 and early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated financial statements. |
Debt_and_Financial_Instruments
Debt and Financial Instruments | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Debt and Financial Instruments | (7) Debt and Financial Instruments | ||||||||||||
Debt: | |||||||||||||
On March 27, 2015, we entered into a new $185 million revolving credit agreement (“Credit Agreement”). The Credit Agreement, which will mature in four years, replaced our previous revolving credit facility which was scheduled to mature on July 24, 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 a one-time option to extend the maturity date for an additional one year period, and an option to increase the total facility borrowing capacity up to an additional $50 million, subject to lender agreement. Borrowings under the new facility are guaranteed by certain subsidiaries of the Trust. In addition, borrowings under the new facility are secured by first priority security interests in and liens on all equity interests in the Trust’s wholly-owned subsidiaries. | |||||||||||||
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 1.50% to 2.00% or at the Base Rate plus an applicable margin ranging from 0.50% to 1.00%. The Credit Agreement defines “Base Rate” as the greatest of: (a) the administrative agent’s prime rate; (b) the federal funds effective rate plus 1/2 of 1%, and; (c) one month LIBOR plus 1%. A commitment fee of 0.20% to 0.40% (depending on our total leverage ratio) will be charged on the average unused portion of the revolving credit commitments. The margins over LIBOR, Base Rate and the commitment fee are based upon our ratio of debt to total capital. At March 31, 2015, the applicable margin over the LIBOR rate was 1.625%, the margin over the Base Rate was 0.625%, and the commitment fee was 0.25%. | |||||||||||||
At March 31, 2015, we had $116.0 million of outstanding borrowings and $5.9 million of letters of credit outstanding against our revolving credit agreement. We had $63.1 million of available borrowing capacity, net of the outstanding borrowings and letters of credit outstanding as of March 31, 2015. At December 31, 2014, we had $89.8 million of outstanding borrowings and $6.3 million of letters of credit outstanding against our previous $150 million revolving credit agreement (which was replaced in March, 2015, as discussed above). 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 Credit Agreement contains customary affirmative and negative covenants, including limitations on certain indebtedness, liens, acquisitions and other investments, fundamental changes, asset dispositions and dividends and other distributions. The Credit Agreement also contains restrictive covenants regarding the Trust’s ratio of total debt to total assets, the fixed charge coverage ratio, the ratio of total secured debt to total asset value, the ratio of total unsecured debt to total unencumbered asset value, and minimum net worth, as well as customary events of default, the occurrence of which may trigger an acceleration of amounts outstanding under the Credit Agreement. We are in compliance with all of the covenants at March 31, 2015. 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 | March 31, | ||||||||||||
2015 | |||||||||||||
Tangible net worth | $ | 125,000 | $ | 177,689 | |||||||||
Total leverage | < 60 | % | 48.9 | % | |||||||||
Secured leverage | < 30 | % | 23.2 | % | |||||||||
Unencumbered leverage | < 60 | % | 38.8 | % | |||||||||
Fixed charge coverage | > 1.50x | 3.1x | |||||||||||
We have fifteen mortgages, all of which are non-recourse to us, included on our condensed consolidated balance sheet as of March 31, 2015, with a combined outstanding balance of $117.1 million (excluding net debt premium of $468,000 at March 31, 2015). The following table summarizes our outstanding mortgages, excluding net debt premium, at March 31, 2015 (amounts in thousands): | |||||||||||||
Facility Name | Outstanding | Interest | Maturity | ||||||||||
Balance | Rate | Date | |||||||||||
(in thousands)(a) | |||||||||||||
Desert Valley Medical Center floating rate mortgage loan (b.) | $ | 3,833 | 3.42 | % | October, 2015 | ||||||||
Palmdale Medical Plaza fixed rate mortgage loan (b.) | 5,969 | 3.69 | % | October, 2015 | |||||||||
Summerlin Hospital Medical Office Building III floating rate mortgage loan | 10,942 | 3.42 | % | December, 2016 | |||||||||
Peace Health fixed rate mortgage loan | 21,132 | 5.64 | % | April, 2017 | |||||||||
Auburn Medical II floating rate mortgage loan | 7,126 | 2.92 | % | April, 2017 | |||||||||
Medical Center of Western Connecticut fixed rate mortgage loan | 4,754 | 6 | % | June, 2017 | |||||||||
Summerlin Hospital Medical Office Building II fixed rate mortgage loan | 11,653 | 5.5 | % | October, 2017 | |||||||||
Phoenix Children’s East Valley Care Center fixed rate mortgage loan | 6,451 | 5.88 | % | December, 2017 | |||||||||
Centennial Hills Medical Office Building floating rate mortgage loan | 10,566 | 3.42 | % | January, 2018 | |||||||||
Sparks Medical Building/Vista Medical Terrace floating rate mortgage loan | 4,446 | 3.42 | % | February, 2018 | |||||||||
Rosenberg Children’s Medical Plaza fixed rate mortgage loan | 8,439 | 4.85 | % | May, 2018 | |||||||||
Vibra Hospital-Corpus Christi fixed rate mortgage loan | 2,880 | 6.5 | % | July, 2019 | |||||||||
700 Shadow Lane and Goldring MOBs fixed rate mortgage loan | 6,559 | 4.54 | % | June, 2022 | |||||||||
BRB Medical Office Building fixed rate mortgage loan | 6,630 | 4.27 | % | December, | |||||||||
2022 | |||||||||||||
Tuscan Professional Building fixed rate mortgage loan | 5,759 | 5.56 | % | June, 2025 | |||||||||
Total | $ | 117,139 | |||||||||||
(a) | Amortized principal payments are made on a monthly basis. | ||||||||||||
(b) | We expect this loan to be refinanced 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, 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 $119 million as of March 31, 2015. 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. | |||||||||||||
At December 31, 2014, we had sixteen mortgages, all of which were non-recourse to us, included in our consolidated balance sheet. The combined outstanding balance of these sixteen mortgages was $122.9 million (excluding net debt premium of $523,000 at December 31, 2014), and had a combined fair value of approximately $124.7 million at December 31, 2014. | |||||||||||||
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 March 31, 2015, no payments have been made to us by the counterparties pursuant to the terms of these caps which expire in January, 2017. |
Segment_Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting | (8) 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. |
Relationship_with_Universal_He1
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Existing Lease Terms and Renewal Options for Acute Care Hospitals | The table below details the existing lease terms and renewal options for our three acute care hospitals operated by wholly-owned subsidiaries of UHS: | ||||||||||||
Hospital Name | Annual | End of | Renewal | ||||||||||
Minimum | Lease Term | Term | |||||||||||
Rent | (years) | ||||||||||||
McAllen Medical Center | $ | 5,485,000 | December, 2016 | 15 | (a) | ||||||||
Wellington Regional Medical Center | $ | 3,030,000 | December, 2016 | 15 | (b) | ||||||||
Southwest Healthcare System, Inland Valley Campus | $ | 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). |
Summarized_Financial_Informati1
Summarized Financial Information of Equity Affiliates (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Limited Liability Companies Accounted for Under Equity Method | 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 March 31, 2015 and 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 $8.9 million, which is non-recourse to us, outstanding as of March 31, 2015. | ||||||||||
(b.) | We have funded $5.2 million in equity as of March 31, 2015 and are committed to invest an additional $1.2 million. This LLC has a third-party term loan of $23.1 million, which is non-recourse to us, outstanding as of March 31, 2015. | ||||||||||
(c.) | We have funded $2.7 million in equity as of March 31, 2015, and are committed to fund an additional $300,000. 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 $14.8 million, which is non-recourse to us, outstanding as of March 31, 2015 | ||||||||||
(d.) | We have committed to invest up to $2.5 million in equity and debt financing, of which $1.5 million has been funded as of March 31, 2015. This LLC has a third-party term loan of $5.5 million, which is non-recourse to us, outstanding as of March 31, 2015. | ||||||||||
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. | |||||||||||
Name of LLC/LP | Ownership | Property Owned by LLC | |||||||||
prior to | |||||||||||
minority | |||||||||||
interest | |||||||||||
purchase | |||||||||||
DVMC Properties | 90 | % | Desert Valley Medical Center | ||||||||
Santa Fe Scottsdale | 90 | % | Santa Fe Professional Plaza | ||||||||
PCH Medical Properties | 85 | % | Rosenberg Children’s Medical Plaza | ||||||||
Sierra Medical Properties | 95 | % | Sierra San Antonio Medical Plaza | ||||||||
PCH Southern Properties | 95 | % | Phoenix Children’s East Valley Care Center | ||||||||
3811 Bell Medical Properties | 95 | % | North Valley Medical Plaza | ||||||||
Condensed Combined Statements of Income (Unaudited) for Limited Liability Companies Accounted for Under Equity Method | Below are the condensed combined statements of income (unaudited) for the LLCs accounted for under the equity method at March 31, 2015 and 2014. The combined statements of income for the three months ended March 31, 2014 include the financial results for the six LLCs that we began to account for on a consolidated basis as of August 1, 2014, as discussed above. | ||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
(amounts in thousands) | |||||||||||
2015 | 2014(b.) | ||||||||||
Revenues | $ | 3,585 | $ | 4,909 | |||||||
Operating expenses | 1,337 | 1,971 | |||||||||
Depreciation and amortization | 580 | 896 | |||||||||
Interest, net | 619 | 1,318 | |||||||||
Net income | $ | 1,049 | $ | 724 | |||||||
Our share of net income (a.) | $ | 592 | $ | 593 | |||||||
(a.) | Our share of net income for the three months ended March 31, 2014 includes interest income earned by us on various advances made to LLCs of approximately $352,000. There were no advances outstanding during the first quarter of 2015, therefore there was no interest income earned by us for the three months ended March 31, 2015. | ||||||||||
(b.) | As mentioned above, we began to account for six LLCs 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 three months ended March 31, 2014, include the financial results of the six mentioned LLCs. | ||||||||||
Condensed Combined Balance Sheets (Unaudited) for LLCs Accounted for Under Equity Method | Below are the condensed combined balance sheets (unaudited) for the five above-mentioned LLCs in which we hold noncontrolling ownership interests and that were accounted for under the equity method as of March 31, 2015 and December 31, 2014: | ||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
(amounts in thousands) | |||||||||||
Net property, including CIP | $ | 61,971 | $ | 62,450 | |||||||
Other assets | 5,872 | 7,367 | |||||||||
Total assets | $ | 67,843 | $ | 69,817 | |||||||
Liabilities | $ | 2,453 | $ | 3,348 | |||||||
Mortgage notes payable, non-recourse to us | 52,383 | 52,728 | |||||||||
Equity | 13,007 | 13,741 | |||||||||
Total liabilities and equity | $ | 67,843 | $ | 69,817 | |||||||
Our share of equity in LLCs | $ | 7,945 | $ | 8,605 | |||||||
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's Accounted Under Equity Method | As of March 31, 2015, and 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): | ||||||||||
Mortgage Loan Balance (a.) | |||||||||||
Name of LLC | 3/31/15 | 12/31/14 | Maturity Date | ||||||||
Arlington Medical Properties (b.) | $ | 23,089 | $ | 23,287 | October, 2015 | ||||||
FTX MOB Phase II (c.) | 5,518 | 5,548 | August, 2017 | ||||||||
Grayson Properties (d.) | 14,836 | 14,893 | September, 2021 | ||||||||
Brunswick Associates (e.) | 8,940 | 9,000 | December, 2024 | ||||||||
$ | 52,383 | $ | 52,728 | ||||||||
(a.) | All mortgage loans, other than construction 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 a fixed rate of 3.64% commencing July 1, 2015 through December 31, 2024. |
Debt_and_Financial_Instruments1
Debt and Financial Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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 | March 31, | ||||||||||||
2015 | |||||||||||||
Tangible net worth | $ | 125,000 | $ | 177,689 | |||||||||
Total leverage | < 60 | % | 48.9 | % | |||||||||
Secured leverage | < 30 | % | 23.2 | % | |||||||||
Unencumbered leverage | < 60 | % | 38.8 | % | |||||||||
Fixed charge coverage | > 1.50x | 3.1x | |||||||||||
Outstanding Mortgages, Excluding Net Debt Premium | The following table summarizes our outstanding mortgages, excluding net debt premium, at March 31, 2015 (amounts in thousands): | ||||||||||||
Facility Name | Outstanding | Interest | Maturity | ||||||||||
Balance | Rate | Date | |||||||||||
(in thousands)(a) | |||||||||||||
Desert Valley Medical Center floating rate mortgage loan (b.) | $ | 3,833 | 3.42 | % | October, 2015 | ||||||||
Palmdale Medical Plaza fixed rate mortgage loan (b.) | 5,969 | 3.69 | % | October, 2015 | |||||||||
Summerlin Hospital Medical Office Building III floating rate mortgage loan | 10,942 | 3.42 | % | December, 2016 | |||||||||
Peace Health fixed rate mortgage loan | 21,132 | 5.64 | % | April, 2017 | |||||||||
Auburn Medical II floating rate mortgage loan | 7,126 | 2.92 | % | April, 2017 | |||||||||
Medical Center of Western Connecticut fixed rate mortgage loan | 4,754 | 6 | % | June, 2017 | |||||||||
Summerlin Hospital Medical Office Building II fixed rate mortgage loan | 11,653 | 5.5 | % | October, 2017 | |||||||||
Phoenix Children’s East Valley Care Center fixed rate mortgage loan | 6,451 | 5.88 | % | December, 2017 | |||||||||
Centennial Hills Medical Office Building floating rate mortgage loan | 10,566 | 3.42 | % | January, 2018 | |||||||||
Sparks Medical Building/Vista Medical Terrace floating rate mortgage loan | 4,446 | 3.42 | % | February, 2018 | |||||||||
Rosenberg Children’s Medical Plaza fixed rate mortgage loan | 8,439 | 4.85 | % | May, 2018 | |||||||||
Vibra Hospital-Corpus Christi fixed rate mortgage loan | 2,880 | 6.5 | % | July, 2019 | |||||||||
700 Shadow Lane and Goldring MOBs fixed rate mortgage loan | 6,559 | 4.54 | % | June, 2022 | |||||||||
BRB Medical Office Building fixed rate mortgage loan | 6,630 | 4.27 | % | December, | |||||||||
2022 | |||||||||||||
Tuscan Professional Building fixed rate mortgage loan | 5,759 | 5.56 | % | June, 2025 | |||||||||
Total | $ | 117,139 | |||||||||||
(a) | Amortized principal payments are made on a monthly basis. | ||||||||||||
(b) | We expect this loan to be refinanced 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, utilizing funds borrowed under our revolving credit facility. |
General_Additional_Information
General - Additional Information (Detail) | Mar. 31, 2015 | Aug. 01, 2014 |
Property | ||
Minimum | ||
Non-controlling equity interest, ownership percentage | 33.00% | |
Maximum | ||
Non-controlling equity interest, ownership percentage | 95.00% | |
Limited Liability Companies | ||
Number of real estate investments | 6 | |
Medical office buildings | Limited Liability Companies | ||
Number of real estate investments | 5 |
Relationship_with_Universal_He2
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 2 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property | ||||||
sqft | ||||||
Times | ||||||
Related Party Transaction [Line Items] | ||||||
Advisory fee | $666,000 | $610,000 | ||||
Universal Health Services of Delaware Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Annual incentive fee to Advisor as percentage of cash available for distribution | 20.00% | |||||
Advisory fee | 666,000 | 610,000 | ||||
Average invested real estate assets | 381,000,000 | 349,000,000 | ||||
Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Non-controlling equity interest, ownership percentage | 33.00% | |||||
Minimum | Universal Health Services of Delaware Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of equity to be exceeded for incentive distribution | 15.00% | |||||
Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Non-controlling equity interest, ownership percentage | 95.00% | |||||
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 | ||||
First four renewal options | Mission and Weslaco Freestanding Emergency Departments | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage increase in annual lease rate | 2.00% | |||||
First four renewal options | Mission and Weslaco Freestanding Emergency Departments | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Additional renewal terms, covering year | 2025 | |||||
First four renewal options | Mission and Weslaco Freestanding Emergency Departments | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Additional renewal terms, covering year | 2044 | |||||
Last two renewal options | Mission and Weslaco Freestanding Emergency Departments | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Additional renewal terms, covering year | 2045 | |||||
Last two renewal options | Mission and Weslaco Freestanding Emergency Departments | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Additional renewal terms, covering year | 2054 | |||||
Universal Health Services, Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Number of term renewal options | 6 | |||||
Additional renewal terms | 5 years | |||||
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% | 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 | |||||
Universal Health Services, Inc | Medical office buildings | ||||||
Related Party Transaction [Line Items] | ||||||
Number of office buildings, owned by LLCs, in which the company holds ownership interest | 13 | |||||
Universal Health Services, Inc | Mission and Weslaco Freestanding Emergency Departments | ||||||
Related Party Transaction [Line Items] | ||||||
Number of office buildings, owned by LLCs, in which the company holds ownership interest | 2 | |||||
Universal Health Services, Inc | Revenues | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of revenues generated from leases | 25.00% | 29.00% | ||||
Universal Health Services, Inc | Combined consolidated and unconsolidated revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of revenues generated from leases | 20.00% | 22.00% | ||||
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 |
Existing_Lease_Terms_and_Renew
Existing Lease Terms and Renewal Options for Acute Care Hospitals (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
McAllen Medical Center | ||
Operating Leased Assets [Line Items] | ||
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] | ||
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] | ||
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 Acute Care Hospitals (Parenthetical) (Detail) (Universal Health Services, Inc) | 3 Months Ended |
Mar. 31, 2015 | |
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 |
Dividends_and_Equity_Issuance_1
Dividends and Equity Issuance Program - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | |
Dividends [Line Items] | |||||
Dividends declared and paid | $8,446,000 | $8,050,000 | |||
Declared and paid dividends, per share | $0.64 | $0.63 | |||
Securities, aggregate sales price | 50,000,000 | ||||
At-The-Market (ATM) Equity Issuance Program | |||||
Dividends [Line Items] | |||||
Share issued | 0 | 580,900 | |||
Average sale price per share | $45.97 | ||||
Net cash proceeds from stock issued | 1,100,000 | 25,600,000 | |||
Payment of stock issuance cost | 1,100,000 | ||||
At-The-Market (ATM) Equity Issuance Program | Compensation to Merrill Lynch | |||||
Dividends [Line Items] | |||||
Payment of stock issuance cost | 29,000 | 667,000 | |||
At-The-Market (ATM) Equity Issuance Program | Other Expense | |||||
Dividends [Line Items] | |||||
Payment of stock issuance cost | $391,000 |
Acquisitions_Dispositions_and_1
Acquisitions, Dispositions and New Construction - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 2 Months Ended | 1 Months Ended | 0 Months Ended | ||
Feb. 28, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Jan. 31, 2014 | Jan. 01, 2014 | Aug. 01, 2014 | |
Building | Property | ||||||
sqft | Times | ||||||
sqft | |||||||
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 | |||||
Percentage of minority ownership interests by parent | 100.00% | ||||||
Gains on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | 0 | 316,000 | |||||
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 | |||||
Northwest Medical Center | |||||||
Business Acquisitions and Dispositions [Line Items] | |||||||
Area of acquired building | 16,700 | ||||||
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 | ||||||
Children's Clinic | |||||||
Business Acquisitions and Dispositions [Line Items] | |||||||
Area of acquired building | 9,800 | ||||||
Palmdale Medical Properties and Sparks Medical Properties | |||||||
Business Acquisitions and Dispositions [Line Items] | |||||||
Aggregate cash payment made for acquisitions | 170,000 | ||||||
Percentage of minority ownership purchased from third-party members | 5.00% | ||||||
Ownership prior to minority interest purchase | 95.00% | ||||||
Number of real estate investments | 2 | ||||||
Percentage of minority ownership interests by parent | 100.00% | ||||||
Gains on fair value recognition resulting from the purchase of minority interests in majority-owned LLCs | $316,000 |
Summarized_Financial_Informati2
Summarized Financial Information of Equity Affiliates - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Aug. 01, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Percentage of minority ownership interests by parent | 100.00% | |
Limited Liability Companies | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate investments | 6 | |
Limited Liability Companies | Medical office buildings | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate investments | 5 | |
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 | |
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 |
Limited_Liability_Companies_Ac
Limited Liability Companies Accounted for Under Equity Method (Detail) (Equity Method Investments) | 3 Months Ended | |
Mar. 31, 2015 | ||
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] |
[1] | This LLC has a third-party term loan of $8.9 million, which is non-recourse to us, outstanding as of March 31, 2015. | |
[2] | We have funded $5.2 million in equity as of March 31, 2015 and are committed to invest an additional $1.2 million. This LLC has a third-party term loan of $23.1 million, which is non-recourse to us, outstanding as of March 31, 2015. | |
[3] | We have funded $2.7 million in equity as of March 31, 2015, and are committed to fund an additional $300,000. 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 $14.8 million, which is non-recourse to us, outstanding as of March 31, 2015 | |
[4] | We have committed to invest up to $2.5 million in equity and debt financing, of which $1.5 million has been funded as of March 31, 2015. This LLC has a third-party term loan of $5.5 million, which is non-recourse to us, outstanding as of March 31, 2015. |
Limited_Liability_Companies_Ac1
Limited Liability Companies Accounted for Under Equity Method (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 |
Brunswick Associates | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | $8,900,000 |
Arlington Medical Properties | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | 23,100,000 |
Committed investment in equity and debt financing, funded | 5,200,000 |
Commitment to investment | 1,200,000 |
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 | 1,500,000 |
Commitment to investment | 2,500,000 |
Grayson Properties | |
Schedule of Equity Method Investments [Line Items] | |
Third-party term loan | 14,800,000 |
Committed investment in equity and debt financing, funded | 2,700,000 |
Commitment to investment | $300,000 |
Purchased_Minority_Ownership_I
Purchased Minority Ownership Interest (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
DVMC Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 90.00% |
Property Owned by LLC | Desert Valley Medical Center |
Santa Fe Scottsdale | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 90.00% |
Property Owned by LLC | Santa Fe Professional Plaza |
PCH Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 85.00% |
Property Owned by LLC | Rosenberg Children's Medical Plaza |
Sierra Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | Sierra San Antonio Medical Plaza |
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 |
3811 Bell Medical Properties | |
Business Acquisition [Line Items] | |
Ownership prior to minority interest purchase | 95.00% |
Property Owned by LLC | North Valley Medical Plaza |
Condensed_Combined_Statement_o
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $3,585 | $4,909 | [1] | |
Operating expenses | 1,337 | 1,971 | [1] | |
Depreciation and amortization | 580 | 896 | [1] | |
Interest, net | 619 | 1,318 | [1] | |
Net income | 1,049 | 724 | [1] | |
Our share of net income | $592 | [2] | $593 | [1],[2] |
[1] | As mentioned above, we began to account for six LLCs 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 three months ended March 31, 2014, include the financial results of the six mentioned LLCs. | |||
[2] | Our share of net income for the three months ended March 31, 2014 includes interest income earned by us on various advances made to LLCs of approximately $352,000. There were no advances outstanding during the first quarter of 2015, therefore there was no interest income earned by us for the three months ended March 31, 2015. |
Condensed_Combined_Statement_o1
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Interest income earned on various advances made to LLCs | $0 | $352,000 |
Condensed_Combined_Balance_She
Condensed Combined Balance Sheets of Limited Liabilities Accounted for under Equity Method (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Net property, including CIP | $61,971 | $62,450 |
Other assets | 5,872 | 7,367 |
Total assets | 67,843 | 69,817 |
Liabilities | 2,453 | 3,348 |
Mortgage notes payable, non-recourse to us | 52,383 | 52,728 |
Equity | 13,007 | 13,741 |
Total liabilities and equity | 67,843 | 69,817 |
Our share of equity in LLCs | $7,945 | $8,605 |
Aggregate_Principal_Amounts_Du
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Detail) (Equity Method Investments, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Mortgage Loan Balance | $52,383 | [1] | $52,728 | [1] |
Arlington Medical Properties | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Mortgage Loan Balance | 23,089 | [1],[2] | 23,287 | [1],[2] |
Maturity Date | 2015-10 | [2] | ||
FTX MOB Phase II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Mortgage Loan Balance | 5,518 | [1],[3] | 5,548 | [1],[3] |
Maturity Date | 2017-08 | [3] | ||
Grayson Properties | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Mortgage Loan Balance | 14,836 | [1],[4] | 14,893 | [1],[4] |
Maturity Date | 2021-09 | [4] | ||
Brunswick Associates | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Mortgage Loan Balance | $8,940 | [1],[5] | $9,000 | [1],[5] |
Maturity Date | 2024-12 | [5] | ||
[1] | All mortgage loans, other than construction loans, require monthly principal payments through maturity and include a balloon principal payment upon maturity. | |||
[2] | 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. | |||
[3] | This loan was converted from a construction loan to a term loan in August, 2014, pursuant to the terms of the loan agreement. | |||
[4] | 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. | |||
[5] | 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 a 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) | 3 Months Ended |
Mar. 31, 2015 | |
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% |
Number of additional one year extension options | 2 |
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 | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 3 years |
Minimum | Equity Method Investments | Arlington Medical Properties | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 3 years |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 10 years |
Maximum | Equity Method Investments | Arlington Medical Properties | |
Schedule of Equity Method Investments [Line Items] | |
Refinance of loan, term | 10 years |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2014 | Sep. 30, 2013 | Mar. 27, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Derivative | Derivative | Option | MortgageLoan | MortgageLoan | ||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings under revolving credit agreement | $116,000,000 | $89,750,000 | ||||
Outstanding borrowings under letter of credit | 5,900,000 | 6,300,000 | ||||
Available borrowing capacity | 63,100,000 | 54,000,000 | ||||
Balance of Non Recourse Mortgages | 117,139,000 | [1] | 122,900,000 | |||
Net debt premiums | 468,000 | 523,000 | ||||
Number of non-recourse mortgages | 15 | 16 | ||||
Mortgage loan fair value | 119,000,000 | 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 | 31-Jan-17 | 31-Jan-17 | ||||
Interest Rate Cap | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Derivative instruments, LIBOR rate | 1.50% | 1.50% | ||||
New Revolving Credit Facility Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowing | 185,000,000 | |||||
Unsecured revolving credit agreement terminated period | 4 years | |||||
Revolving credit borrowing capacity additional amount | 50,000,000 | |||||
Number of additional one year extension options | 1 | |||||
Credit facility, Interest Rate Terms | One, two, three, or six month LIBOR plus an applicable margin ranging from 1.50% to 2.00% or at the Base Rate plus an applicable margin ranging from 0.50% to 1.00%. | |||||
Base rate description | Greatest of (a) the administrative agent's prime rate; (b) the federal funds effective rate plus 1/2 of 1%, and; (c) one month LIBOR plus 1%. | |||||
Fee payable on unused portion of commitment | 0.25% | |||||
New Revolving Credit Facility Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Fee payable on unused portion of commitment | 0.20% | |||||
New Revolving Credit Facility Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Fee payable on unused portion of commitment | 0.40% | |||||
New Revolving Credit Facility Agreement | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Margin points added to the reference rate | 1.63% | |||||
New Revolving Credit Facility Agreement | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Margin points added to the reference rate | 1.50% | |||||
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 | 2.00% | |||||
New Revolving Credit Facility Agreement | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin points added to the reference rate | 0.63% | |||||
New Revolving Credit Facility Agreement | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Margin points added to the reference rate | 0.50% | |||||
New Revolving Credit Facility Agreement | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Margin points added to the reference rate | 1.00% | |||||
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 | |||||
Previous Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowing | $150,000,000 | |||||
Unsecured revolving credit agreement terminated date | 24-Jul-15 | |||||
[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 $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Debt Instrument [Line Items] | |
Covenant, Tangible net worth | 125,000 |
Tangible net worth | 177,689 |
Total leverage | 48.90% |
Secured leverage | 23.20% |
Unencumbered leverage | 38.80% |
Fixed charge coverage | 310.00% |
Maximum | |
Debt Instrument [Line Items] | |
Covenant, Total leverage | 60.00% |
Covenant, Secured leverage | 30.00% |
Covenant, Unencumbered leverage | 60.00% |
Minimum | |
Debt Instrument [Line Items] | |
Covenant, Fixed charge coverage | 150.00% |
Summary_of_Outstanding_Mortgag
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Outstanding Balance | $117,139 | [1] | $122,900 |
Desert Valley Medical Center Floating Rate Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 3,833 | [1],[2] | |
Interest Rate | 3.42% | [2] | |
Maturity Date | 2015-10 | [2] | |
Palmdale Medical Plaza fixed rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 5,969 | [1],[2] | |
Interest Rate | 3.69% | [2] | |
Maturity Date | 2015-10 | [2] | |
Summerlin Hospital Medical Office Building III floating rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 10,942 | [1] | |
Interest Rate | 3.42% | ||
Maturity Date | 2016-12 | ||
Peace Health fixed rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 21,132 | [1] | |
Interest Rate | 5.64% | ||
Maturity Date | 2017-04 | ||
Auburn Medical II floating rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 7,126 | [1] | |
Interest Rate | 2.92% | ||
Maturity Date | 2017-04 | ||
Medical Center of Western Connecticut fixed rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 4,754 | [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 | 11,653 | [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 | 6,451 | [1] | |
Interest Rate | 5.88% | ||
Maturity Date | 2017-12 | ||
Centennial Hills Medical Office Building floating rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 10,566 | [1] | |
Interest Rate | 3.42% | ||
Maturity Date | 2018-01 | ||
Sparks Medical Building/Vista Medical Terrace Floating Rate Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 4,446 | [1] | |
Interest Rate | 3.42% | ||
Maturity Date | 2018-02 | ||
Rosenberg Children's Medical Plaza Fixed Rate Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 8,439 | [1] | |
Interest Rate | 4.85% | ||
Maturity Date | 2018-05 | ||
Vibra Hospital-Corpus Christi fixed rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 2,880 | [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 | 6,559 | [1] | |
Interest Rate | 4.54% | ||
Maturity Date | 2022-06 | ||
BRB Medical Office Building fixed rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 6,630 | [1] | |
Interest Rate | 4.27% | ||
Maturity Date | 2022-12 | ||
Tuscan Professional Building fixed rate mortgage loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $5,759 | [1] | |
Interest Rate | 5.56% | ||
Maturity Date | 2025-06 | ||
[1] | Amortized principal payments are made on a monthly basis. | ||
[2] | We expect this loan to be refinanced 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, utilizing funds borrowed under our revolving credit facility. |
Summary_of_Outstanding_Mortgag1
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum | |
Debt Instrument [Line Items] | |
Refinance of loan, term | 3 years |
Maximum | |
Debt Instrument [Line Items] | |
Refinance of loan, term | 10 years |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |