Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | UHT | |
Entity Registrant Name | UNIVERSAL HEALTH REALTY INCOME TRUST | |
Entity Central Index Key | 798,783 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,600,075 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Revenues: | |||
Base rental - UHS facilities | $ 4,080 | $ 4,081 | |
Base rental - Non-related parties | 9,970 | 8,815 | |
Bonus rental - UHS facilities | 1,288 | 1,246 | |
Tenant reimbursements and other - Non-related parties | 2,193 | 1,873 | |
Tenant reimbursements and other - UHS facilities | 219 | 211 | |
Revenues, Total | 17,750 | 16,226 | |
Expenses: | |||
Depreciation and amortization | 6,145 | 5,436 | |
Advisory fees to UHS | 866 | 767 | |
Other operating expenses | 4,705 | 4,400 | |
Transaction costs | 70 | 82 | |
Costs and Expenses, Total | 11,786 | 10,685 | |
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense and gain | 5,964 | 5,541 | |
Equity in income of unconsolidated LLCs | [1] | 1,077 | 1,059 |
Gain on fair value recognition resulting from purchase of minority interest in majority-owned LLC, net | 27,196 | ||
Interest expense, net | (2,675) | (2,172) | |
Net income | $ 31,562 | $ 4,428 | |
Basic earnings per share | $ 2.32 | $ 0.33 | |
Diluted earnings per share | $ 2.32 | $ 0.33 | |
Weighted average number of shares outstanding - Basic | 13,580 | 13,307 | |
Weighted average number of share equivalents | 7 | ||
Weighted average number of shares and equivalents outstanding - Diluted | 13,580 | 13,314 | |
[1] | Our share of net income for the three months ended March 31, 2017 and 2016 includes approximately $284,000 and $296,000, respectively, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 31,562 | $ 4,428 |
Other comprehensive (loss)/income: | ||
Unrealized derivative (losses)/gains on interest rate caps | (18) | 21 |
Total other comprehensive (loss)/income: | (18) | 21 |
Total comprehensive income | $ 31,544 | $ 4,449 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Real Estate Investments: | |||
Buildings and improvements and construction in progress | $ 536,356 | $ 534,190 | |
Accumulated depreciation | (143,346) | (138,588) | |
Real Estate Investment Property, Net, Total | 393,010 | 395,602 | |
Land | 51,645 | 51,638 | |
Net Real Estate Investments | 444,655 | 447,240 | |
Investments in and advances to limited liability companies ("LLCs") | 4,722 | 35,593 | |
Other Assets: | |||
Cash and cash equivalents | 4,067 | 3,930 | |
Restricted cash | 11,253 | ||
Base and bonus rent receivable from UHS | 2,558 | 2,321 | |
Rent receivable - other | 5,515 | 5,291 | |
Intangible assets (net of accumulated amortization of $27.4 million and $27.1 million at March 31, 2017 and December 31, 2016, respectively) | 22,732 | 23,815 | |
Deferred charges and other assets, net | 6,877 | 6,560 | |
Total Assets | 502,379 | 524,750 | |
Liabilities: | |||
Line of credit borrowings | 169,900 | 201,500 | |
Mortgage notes payable, non-recourse to us, net | 103,004 | [1] | 114,217 |
Accrued interest | 563 | 626 | |
Accrued expenses and other liabilities | 9,423 | 11,809 | |
Tenant reserves, deposits and prepaid rents | 5,385 | 5,321 | |
Total Liabilities | 288,275 | 333,473 | |
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: 2017 - 13,600,036; 2016 - 13,599,055 | 136 | 136 | |
Capital in excess of par value | 255,846 | 255,656 | |
Cumulative net income | 604,063 | 572,501 | |
Cumulative dividends | (646,028) | (637,121) | |
Accumulated other comprehensive income | 87 | 105 | |
Total Equity | 214,104 | 191,277 | |
Total Liabilities and Equity | $ 502,379 | $ 524,750 | |
[1] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 27.4 | $ 27.1 |
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 | 0 | 0 |
Preferred shares of beneficial interest, outstanding | 0 | 0 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 95,000,000 | 95,000,000 |
Common shares, issued | 13,600,036 | 13,599,055 |
Common shares, outstanding | 13,600,036 | 13,599,055 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 31,562 | $ 4,428 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,167 | 5,458 |
Amortization of debt premium | (68) | (56) |
Stock-based compensation expense | 127 | 111 |
Gain on fair value recognition resulting from purchase of minority interest in majority-owned LLC, net | (27,196) | |
Changes in assets and liabilities: | ||
Rent receivable | (461) | (511) |
Accrued expenses and other liabilities | (230) | (1,014) |
Tenant reserves, deposits and prepaid rents | 64 | 574 |
Accrued interest | (63) | 34 |
Leasing costs paid | (250) | (122) |
Other, net | (158) | 192 |
Net cash provided by operating activities | 9,494 | 9,094 |
Cash flows from investing activities: | ||
Investments in LLCs | (371) | (5,386) |
Repayments of advances made to LLC | 216 | 209 |
Cash distributions in excess of income from LLCs | 557 | 147 |
Additions to real estate investments, net | (4,181) | (1,841) |
Cash proceeds received from divestiture of property, net of restricted cash | 53,967 | |
Net cash paid for acquisition of properties | (9,910) | |
Cash paid to acquire minority interests in majority-owned LLCs | (7,890) | |
Net cash provided by/(used in) investing activities | 42,298 | (16,781) |
Cash flows from financing activities: | ||
Net (repayments)/borrowings on line of credit | (31,600) | 17,500 |
Repayments of mortgage notes payable | (11,174) | (790) |
Financing costs paid | (35) | (35) |
Dividends paid | (8,907) | (8,596) |
Issuance of shares of beneficial interest, net | 61 | 30 |
Net cash (used in)/provided by financing activities | (51,655) | 8,109 |
Increase in cash and cash equivalents | 137 | 422 |
Cash and cash equivalents, beginning of period | 3,930 | 3,894 |
Cash and cash equivalents, end of period | 4,067 | 4,316 |
Supplemental disclosures of cash flow information: | ||
Interest paid | $ 2,673 | $ 2,072 |
General
General | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | (1) General This Quarterly Report on Form 10-Q is for the quarter ended March 31, 2017. 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 LLCs in which we have various non-controlling equity interests ranging from 33% to 95%. As of March 31, 2017, we had investments in four jointly-owned LLCs/LPs 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, 2016. |
Relationship with Universal Hea
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
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 of the three hospital facilities 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 three 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 23% and 25% of our consolidated revenues for the three months ended March 31, 2017 and 2016, 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 19% and 20% of the combined consolidated and unconsolidated revenue for the three months ended March 31, 2017 and 2016, respectively. In addition, we have seventeen medical office buildings (“MOBs”), or free-standing emergency departments (“FEDs”), that are either wholly or jointly-owned by us, that 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. In June, 2016, three wholly-owned subsidiaries of UHS provided the required notice to us, exercising the 5-year renewal options on the leases related to our acute care hospitals. The renewals extended the lease terms on these facilities, at existing lease rates, to December, 2021. 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 Minimum Rent End of Lease Term Renewal Term (years) McAllen Medical Center $ 5,485,000 December, 2021 10 (a) Wellington Regional Medical Center $ 3,030,000 December, 2021 10 (b) Southwest Healthcare System, Inland Valley Campus $ 2,648,000 December, 2021 10 (b) (a) UHS has two 5-year renewal options at existing lease rates (through 2031). (b) UHS has 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 or 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 the these leases. In April, 2017, the recently constructed Henderson Medical Plaza MOB received its certificate of occupancy. Henderson Medical Plaza is located on the campus of the Henderson Hospital, a newly constructed, 130-bed acute care hospital that is owned and operated by a subsidiary of UHS and was completed and opened during the fourth quarter of 2016. We have invested $10.8 million on the development and construction of this MOB as of March 31, 2017. 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 is 0.70% of our average invested real estate assets, as derived from our consolidated balance sheet. In December of 2016, 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 2017 pursuant to the same terms as the Advisory Agreement in place during 2016. 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, restricted cash, 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 2017 or 2016 since the incentive fee requirements were not achieved. Advisory fees incurred and paid (or payable) to UHS amounted to $866,000 and $767,000 for the three months ended March 31, 2017 and 2016, respectively, and were based upon average invested real estate assets of $495 million and $438 million for the three-month periods ended March 31, 2017 and 2016, respectively. Officers and Employees: Our officers are all employees of a wholly-owned subsidiary of UHS and although as of March 31, 2017 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, 2017 and December 31, 2016, UHS owned 5.8% 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 23% and 25% of our consolidated revenues during the three-month periods ended March 31, 2017 and 2016, 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 P
Dividends and Equity Issuance Program | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Dividends and Equity Issuance Program | (3) Dividends and Equity Issuance Program Dividends: We declared and paid dividends of $8.9 million, or $.655 per share, during the first quarter of 2017 and $8.6 million, or $.645 per share, during the first quarter of 2016. Equity Issuance Program: During the second quarter of 2016, we recommenced our 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 approximately $23.3 million to or through Merrill Lynch, Pierce, Fenner and Smith, Incorporated (“Merrill Lynch”), as sales agent and/or principal. The common shares were offered pursuant to the Registration Statement filed with the Securities and Exchange Commission, which became effective during the fourth quarter of 2015. There were no shares issued pursuant to the ATM Program during the first quarter of 2017. Since inception of this ATM program, we have issued 829,916 shares at an average price of $48.77 per share, which generated approximately $38.8 million of net proceeds (net of approximately $1.7 million, consisting of compensation of $1.0 million to Merrill Lynch as well as $680,000 of other various fees and expenses). |
Acquisitions, Dispositions and
Acquisitions, Dispositions and New Construction | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions, Dispositions and New Construction | (4) Acquisitions, Dispositions and New Construction Three Months Ended March 31, 2017: Acquisitions: There were no acquisitions during the first three months of 2017. Disposition: During March, 2017, Arlington Medical Properties, LLC, a formerly jointly-owned limited liability company in which we held an 85% noncontrolling ownership interest, sold the real estate assets of St. Mary’s Professional Office Building (“St. Mary’s”) as part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code. St. Mary’s is a multi-tenant medical office building located in Reno, Nevada. A third party member owned the remaining 15% of Arlington Medical Properties LLC, which we acquired prior to the divestiture of St. Mary’s for a purchase price of $7.9 million. In connection with the divestiture of St. Mary’s, we are entitled to an aggregate of approximately $57.3 million of net cash proceeds. These proceeds, which are net of closing costs and the purchase price paid for the minority member’s ownership interest in the LLC, include repayment to us of a $21.4 million member loan previously extended to Arlington Medical Properties, LLC by us when we held an 85% noncontrolling ownership interest in the LLC. As of March 31, 2017, approximately $11.3 million of the net sale proceeds due to us are being held as restricted cash by a qualified 1031 exchange intermediary in connection with potential future acquisitions, as discussed below. Our results of operations for the three-month period ended March 31, 2017 include a net gain of $27.2 million (net of related transaction costs) recorded in connection with these transactions. Tax Deferred Like-Kind Exchange Transactions Under Section 1031 of the Internal Revenue Code: As part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code, we have completed the divestiture of St. Mary’s Professional Office Building in March, 2017, as discussed above, and the two previously announced 2016 acquisitions, as outlined below. In addition, we may complete other potential 2017 acquisitions, as outlined below. Acquisitions Previously Completed in 2016: • 2704 North Tenaya Way, located in Las Vegas, Nevada. This MOB was acquired in November, 2016 for a total purchase price of approximately $15.3 million, including the assumption of approximately $7.1 million of third-party debt that is non-recourse to us. • Frederick Crestwood Medical Office Building, located in Frederick, Maryland. This MOB was acquired in September, 2016 for a purchase price of approximately $24.3 million. Both of these 2016 acquisitions were planned and executed in accordance with the provisions of Section 1031 of the Internal Revenue Code and therefore we believe they qualify as tax deferred like-kind exchange transactions in connection with the above-mentioned divestiture of St. Mary’s in March, 2017. Other Potential 2017 Acquisitions: • In addition to the above-mentioned 2016 acquisitions, we may purchase one or more additional properties during 2017, as part of the planned like-kind exchange transactions. We can provide no assurance that we will complete one or more additional acquisitions during 2017. Any additional acquisitions completed during 2017 would need to be finalized by mid-September in order to qualify as tax deferred like-kind exchange transactions under the provisions of Section 1031 of the Internal Revenue Code in connection with the divestiture of St. Mary’s. New Construction: During the first quarter of 2016, we committed to invest up to $21.1 million in the development and construction of the Henderson Medical Plaza, an MOB located on the campus of the Henderson Hospital Medical Center which is owned by a UHS subsidiary and opened in late October, 2016. The MOB was completed and opened during April, 2017. We have invested $10.8 million on the development and construction for this MOB as of March 31, 2017. Three Months Ended March 31, 2016: Acquisition: In March, 2016, we purchased the Madison Professional Office Building located in Madison, Alabama for approximately $10.1 million. This multi-tenant property was fully occupied with an average remaining lease term of approximately 6.2 years at the time of acquisition. The aggregate purchase price for this MOB was allocated to the assets acquired and liabilities assumed consisting of tangible property and identified intangible assets, based on the fair value estimated at acquisition as detailed in the table below. Substantially all of the intangible assets include the value of the in-place leases at the MOB at the time of acquisition which is being amortized over the average remaining lease term of approximately 6.2 years at the time of acquisition. Land $2,328 Buildings and improvements 6,523 Intangible assets 1,209 Deposit (150) Net cash paid $9,910 Dispositions: There were no divestitures during the first three months of 2016. |
Summarized Financial Informatio
Summarized Financial Information of Equity Affiliates | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summarized Financial Information of Equity Affiliates | (5) Summarized Financial Information of Equity Affiliates 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/LPs 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. In the Consolidated Statements of Cash Flows, distributions and equity in net income are presented net as cash flows from operating activities. Cumulative distributions received exceeding cumulative equity in earnings represent returns of investments and are classified as cash flows from investing activities in the Consolidated Statements of Cash Flows. At March 31, 2017, we have non-controlling equity investments or commitments in four jointly-owned LLCs/LPs which own MOBs. As of March 31, 2017, we accounted for these LLCs/LPs on an unconsolidated basis pursuant to the equity method since they are not variable interest entities and we do not have a controlling voting interest. The majority of these entities are joint-ventures between us and non-related parties that manage and hold minority ownership interests in the entities. Each entity 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 entities maintain property insurance on the properties. During March, 2017, Arlington Medical Properties, LLC, a formerly jointly-owned limited liability company in which we held an 85% noncontrolling ownership interest, sold the real estate assets of St. Mary’s Professional Office Building (“St. Mary’s”) as part of a series of planned tax deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code. A third party member owned the remaining 15% of Arlington Medical Properties LLC, which we acquired prior to the divestiture of St. Mary’s. The following property table represents the four LLCs in which we own a noncontrolling interest and were accounted for under the equity method as of March 31, 2017: Name of LLC/LP Ownership Property Owned by LLC Suburban Properties 33 % St. Matthews Medical Plaza II Brunswick Associates (a.) 74 % Mid Coast Hospital MOB Grayson Properties (b.) 95 % Texoma Medical Plaza FTX MOB Phase II (c.) 95 % Forney Medical Plaza II (a.) This LLC has a third-party term loan, which is non-recourse to us, of $8.6 million outstanding as of March 31, 2017. (b.) 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, which is non-recourse to us, of $14.4 million outstanding as of March 31, 2017. (c.) We have committed to invest up to $2.5 million in equity and debt financing, of which $2.1 million has been funded as of March 31, 2017. This LLC has a third-party term loan, which is non-recourse to us, of $5.3 million outstanding as of March 31, 2017. Below are the condensed combined statements of income (unaudited) for the LLCs accounted for under the equity method during the three months ended March 31, 2017 and 2016. The three months ended March 31, 2017 include the financial results of Arlington Medical Properties, LLC, through the March 13, 2017 divestiture date. The three months ended March 31, 2016, include the financial results of Arlington Medical Properties, LLC for the entire three months ended March 31, 2016. Three Months Ended March 31, 2017 2016 (amounts in thousands) Revenues $ 3,583 $ 3,736 Operating expenses 1,250 1,353 Depreciation and amortization 643 613 Interest, net 562 657 Net income $ 1,128 $ 1,113 Our share of net income (a.) $ 1,077 $ 1,059 (a.) Our share of net income for the three months ended March 31, 2017 and 2016 includes approximately $284,000 and $296,000, respectively, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017. Below are the condensed combined balance sheets (unaudited) for the four above-mentioned LLCs that were accounted for under the equity method as of March 31, 2017 and the five LLCs (including Arlington Medical Properties, LLC, which was divested during the first quarter of 2017) that were accounted for under the equity method as of December 31, 2016: March 31, 2017 December 31, 2016 (amounts in thousands) Net property, including CIP $ 33,816 $ 60,970 Other assets 3,685 4,598 Total assets $ 37,501 $ 65,568 Liabilities $ 2,726 $ 3,334 Mortgage notes payable, non-recourse to us 28,222 28,367 Advances payable to us - 21,638 Equity 6,553 12,229 Total liabilities and equity $ 37,501 $ 65,568 Our share of equity in and advances to LLCs reflected as: Investments in LLCs $ 4,722 $ 13,955 Advances to LLCs - 21,638 Investments in and advances to LLCs before amounts included in accrued expenses and other liabilities 4,722 35,593 Amounts included in accrued expenses and other liabilities (1,476 ) (1,862 ) Our share of equity in and advances to LLCs, net $ 3,246 $ 33,731 As of March 31, 2017, and December 31, 2016, 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/LP 3/31/2017 12/31/2016 Maturity Date FTX MOB Phase II $ 5,267 $ 5,301 August, 2017 (b.) Grayson Properties 14,375 14,438 September, 2021 Brunswick Associates 8,580 8,628 December, 2024 $ 28,222 $ 28,367 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. (b.) This loan is scheduled to mature within the next twelve months, at which time it will be refinanced pursuant to: (i) a new third-party mortgage loan; (ii) a member loan extended from us to the LLC, or; (iii) equity contributions to the LLC by us and the third-party member. Funds required from us to the LLC for either the member loan or our share of an equity contribution would likely be borrowed under our Credit Agreement. Pursuant to the operating and/or partnership agreements of the four LLCs/LPs in which we continue to hold non-controlling ownership interests, the third-party member and/or the Trust, at any time, potentially subject to certain conditions, 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 Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | (6) Recent Accounting Pronouncements In August, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which adds or clarifies guidance of the classification of certain cash receipts and payments in the statement of cash flows with the intent to alleviate diversity in practice for classifying various types of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of this ASU on our statement of cash flows. In February 2016, the FASB In 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers In January, 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” to clarify the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. ASU 2017-01 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We expect that future property acquisitions will generally qualify as asset acquisitions under the standard, which permits the capitalization of acquisition costs to the underlying assets. We adopted this new guidance effective January 1, 2017. This new guidance is not expected to have a significant impact on our financial statements. |
Debt and Financial Instruments
Debt and Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Financial Instruments | (7) Debt and Financial Instruments Debt: Management routinely monitors and analyzes the Trust’s capital structure in an effort to maintain the targeted balance among capital resources including the level of borrowings pursuant to our $250 million revolving credit facility, the level of borrowings pursuant to non-recourse mortgage debt secured by the real property of our properties and our level of equity including consideration of additional equity issuances pursuant to our ATM equity issuance program. This ongoing analysis considers factors such as the current debt market and interest rate environment, the current/projected occupancy and financial performance of our properties, the current loan-to-value ratio of our properties, the Trust’s current stock price, the capital resources required for anticipated acquisitions and the expected capital to be generated by anticipated divestitures. This analysis, together with consideration of the Trust’s current balance of revolving credit facility borrowings, non-recourse mortgage borrowings and equity, assists management in deciding which capital resource to utilize when events such as refinancing of specific debt components occur or additional funds are required to finance the Trust’s growth. On March 27, 2015, we entered into a $185 million revolving credit agreement (“Credit Agreement”) which was amended on May 24, 2016 to, among other things, increase the borrowing capacity to $250 million. The amended Credit Agreement, which is scheduled to mature in March, 2019, includes a $40 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 Credit Agreement are guaranteed by certain subsidiaries of the Trust. In addition, borrowings under the Credit Agreement 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, 2017, 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, 2017, we had $169.9 million of outstanding borrowings and $2.7 million of letters of credit outstanding under our Credit Agreement. We had $77.4 million of available borrowing capacity, net of the outstanding borrowings and letters of credit outstanding as of March 31, 2017. 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 tangible 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, 2017. 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, 2017 Tangible net worth $ 125,000 $ 191,372 Total leverage < 60% 44.3 % Secured leverage < 30% 16.1 % Unencumbered leverage < 60% 40.3 % Fixed charge coverage > 1.50x 3.6x As indicated on the following table, we have fourteen mortgages, all of which are non-recourse to us, included on our condensed consolidated balance sheet as of March 31, 2017, with a combined outstanding balance of $103.0 million, excluding net debt premium of $368,000 and net financing fees of $353,000 (amounts in thousands): Facility Name Outstanding Balance (in Interest Rate Maturity Date Peace Health fixed rate mortgage loan (c.) $ 20,180 5.64 % April, 2017 Medical Center of Western Connecticut fixed rate mortgage loan (d.) 4,500 6.00 % June, 2017 Auburn Medical II floating rate mortgage loan (e.) 6,668 3.53 % July, 2017 Summerlin Hospital Medical Office Building II fixed rate mortgage loan (b.) 11,007 5.50 % October, 2017 Phoenix Children’s East Valley Care Center fixed rate mortgage loan (b.) 6,164 5.88 % December, 2017 Centennial Hills Medical Office Building floating rate mortgage loan (b.) 9,968 4.06 % January, 2018 Sparks Medical Building/Vista Medical Terrace floating rate mortgage loan (b.) 4,202 4.06 % February, 2018 Rosenberg Children’s Medical Plaza fixed rate mortgage loan 8,103 4.85 % May, 2018 Vibra Hospital-Corpus Christi fixed rate mortgage loan 2,699 6.50 % July, 2019 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan 6,201 4.54 % June, 2022 BRB Medical Office Building fixed rate mortgage loan 6,269 4.27 % December, 2022 Desert Valley Medical Center fixed rate mortgage loan 5,047 3.62 % January, 2023 2704 North Tenaya Way fixed rate mortgage loan 7,105 4.95 % November, 2023 Tuscan Professional Building fixed rate mortgage loan 4,876 5.56 % June, 2025 Total, excluding net debt premium and net financing fees 102,989 Less net financing fees (353 ) Plus net debt premium 368 Total mortgages notes payable, non-recourse to us, net $ 103,004 (a.) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. (b.) This loan is scheduled to mature within the next twelve months, at which time we will decide whether to refinance pursuant to a new mortgage loan or repaid utilizing borrowings under our Credit Agreement. (c.) During April, 2017, upon its maturity, this $20.2 million fixed rate mortgage loan on the Peace Health Medical Clinic was repaid utilizing borrowings under our Credit Agreement. (d.) Upon its June, 2017 maturity date, we intend to repay this loan utilizing borrowings under our Credit Agreement. (e.) The maturity date on this loan has been extended to July, 2017, at which time we intend to repay the loan utilizing borrowings under our Credit Agreement. On March 31, 2017, upon its maturity, the $10.3 million floating rate mortgage loan on Summerlin Hospital Medical Office Building III was fully repaid. In April, 2017, we refinanced this property with a $13.2 million, 4.03% fixed rate mortgage, which is non-recourse to us, which matures in April, 2024. 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 $105 million as of March 31, 2017. 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, 2016, we had fifteen mortgages, all of which were non-recourse to us, included in our consolidated balance sheet. The combined outstanding balance of these fifteen mortgages was $114.2 million (excluding net debt premium of $436,000 and net financing fees of $381,000), and had a combined fair value of approximately $115.7 million. 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 the January, 2017 expiration, no payments were made to us by the counterparties pursuant to the terms of these caps. During the second quarter of 2016, we entered into an interest rate cap on the total notional amount of $30 million whereby we paid a premium of $115,000. In exchange for the premium payment, 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. This interest rate cap became effective in January, 2017, coinciding with the expiration of the above-mentioned interest rate caps and expires in March, 2019. During the third quarter of 2016, we entered into an additional interest rate cap agreement on a total notional amount of $30 million whereby we paid a premium of $55,000. In exchange for the premium payment, the counterparties agreed to pay us the difference between 1.5% and one-month LIBOR if one-month LIBOR rises above 1.5% during the term of the cap. This interest rate cap became effective in October, 2016 and expires in March, 2019. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
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. |
Recent Accounting Pronounceme15
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which adds or clarifies guidance of the classification of certain cash receipts and payments in the statement of cash flows with the intent to alleviate diversity in practice for classifying various types of cash flows. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of this ASU on our statement of cash flows. In February 2016, the FASB In 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers In January, 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” to clarify the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. ASU 2017-01 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We expect that future property acquisitions will generally qualify as asset acquisitions under the standard, which permits the capitalization of acquisition costs to the underlying assets. We adopted this new guidance effective January 1, 2017. This new guidance is not expected to have a significant impact on our financial statements. |
Relationship with Universal H16
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities | 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 Minimum Rent End of Lease Term Renewal Term (years) McAllen Medical Center $ 5,485,000 December, 2021 10 (a) Wellington Regional Medical Center $ 3,030,000 December, 2021 10 (b) Southwest Healthcare System, Inland Valley Campus $ 2,648,000 December, 2021 10 (b) (a) UHS has two 5-year renewal options at existing lease rates (through 2031). (b) UHS has two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Acquisitions, Dispositions an17
Acquisitions, Dispositions and New Construction (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The aggregate purchase price for this MOB was allocated to the assets acquired and liabilities assumed consisting of tangible property and identified intangible assets, based on the fair value estimated at acquisition as detailed in the table below. Land $2,328 Buildings and improvements 6,523 Intangible assets 1,209 Deposit (150) Net cash paid $9,910 |
Summarized Financial Informat18
Summarized Financial Information of Equity Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Limited Liability Companies Accounted for Under Equity Method | The following property table represents the four LLCs in which we own a noncontrolling interest and were accounted for under the equity method as of March 31, 2017: Name of LLC/LP Ownership Property Owned by LLC Suburban Properties 33 % St. Matthews Medical Plaza II Brunswick Associates (a.) 74 % Mid Coast Hospital MOB Grayson Properties (b.) 95 % Texoma Medical Plaza FTX MOB Phase II (c.) 95 % Forney Medical Plaza II (a.) This LLC has a third-party term loan, which is non-recourse to us, of $8.6 million outstanding as of March 31, 2017. (b.) 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, which is non-recourse to us, of $14.4 million outstanding as of March 31, 2017. (c.) We have committed to invest up to $2.5 million in equity and debt financing, of which $2.1 million has been funded as of March 31, 2017. This LLC has a third-party term loan, which is non-recourse to us, of $5.3 million outstanding as of March 31, 2017. |
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 during the three months ended March 31, 2017 and 2016. The three months ended March 31, 2017 include the financial results of Arlington Medical Properties, LLC, through the March 13, 2017 divestiture date. The three months ended March 31, 2016, include the financial results of Arlington Medical Properties, LLC for the entire three months ended March 31, 2016. Three Months Ended March 31, 2017 2016 (amounts in thousands) Revenues $ 3,583 $ 3,736 Operating expenses 1,250 1,353 Depreciation and amortization 643 613 Interest, net 562 657 Net income $ 1,128 $ 1,113 Our share of net income (a.) $ 1,077 $ 1,059 (a.) Our share of net income for the three months ended March 31, 2017 and 2016 includes approximately $284,000 and $296,000, respectively, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017. |
Condensed Combined Balance Sheets (Unaudited) for LLCs Accounted for Under Equity Method | Below are the condensed combined balance sheets (unaudited) for the four above-mentioned LLCs that were accounted for under the equity method as of March 31, 2017 and the five LLCs (including Arlington Medical Properties, LLC, which was divested during the first quarter of 2017) that were accounted for under the equity method as of December 31, 2016: March 31, 2017 December 31, 2016 (amounts in thousands) Net property, including CIP $ 33,816 $ 60,970 Other assets 3,685 4,598 Total assets $ 37,501 $ 65,568 Liabilities $ 2,726 $ 3,334 Mortgage notes payable, non-recourse to us 28,222 28,367 Advances payable to us - 21,638 Equity 6,553 12,229 Total liabilities and equity $ 37,501 $ 65,568 Our share of equity in and advances to LLCs reflected as: Investments in LLCs $ 4,722 $ 13,955 Advances to LLCs - 21,638 Investments in and advances to LLCs before amounts included in accrued expenses and other liabilities 4,722 35,593 Amounts included in accrued expenses and other liabilities (1,476 ) (1,862 ) Our share of equity in and advances to LLCs, net $ 3,246 $ 33,731 |
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's Accounted Under Equity Method | As of March 31, 2017, and December 31, 2016, 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/LP 3/31/2017 12/31/2016 Maturity Date FTX MOB Phase II $ 5,267 $ 5,301 August, 2017 (b.) Grayson Properties 14,375 14,438 September, 2021 Brunswick Associates 8,580 8,628 December, 2024 $ 28,222 $ 28,367 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. (b.) This loan is scheduled to mature within the next twelve months, at which time it will be refinanced pursuant to: (i) a new third-party mortgage loan; (ii) a member loan extended from us to the LLC, or; (iii) equity contributions to the LLC by us and the third-party member. Funds required from us to the LLC for either the member loan or our share of an equity contribution would likely be borrowed under our Credit Agreement. |
Debt and Financial Instruments
Debt and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
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, 2017 Tangible net worth $ 125,000 $ 191,372 Total leverage < 60% 44.3 % Secured leverage < 30% 16.1 % Unencumbered leverage < 60% 40.3 % Fixed charge coverage > 1.50x 3.6x |
Outstanding Mortgages, Excluding Net Debt Premium | Facility Name Outstanding Balance (in Interest Rate Maturity Date Peace Health fixed rate mortgage loan (c.) $ 20,180 5.64 % April, 2017 Medical Center of Western Connecticut fixed rate mortgage loan (d.) 4,500 6.00 % June, 2017 Auburn Medical II floating rate mortgage loan (e.) 6,668 3.53 % July, 2017 Summerlin Hospital Medical Office Building II fixed rate mortgage loan (b.) 11,007 5.50 % October, 2017 Phoenix Children’s East Valley Care Center fixed rate mortgage loan (b.) 6,164 5.88 % December, 2017 Centennial Hills Medical Office Building floating rate mortgage loan (b.) 9,968 4.06 % January, 2018 Sparks Medical Building/Vista Medical Terrace floating rate mortgage loan (b.) 4,202 4.06 % February, 2018 Rosenberg Children’s Medical Plaza fixed rate mortgage loan 8,103 4.85 % May, 2018 Vibra Hospital-Corpus Christi fixed rate mortgage loan 2,699 6.50 % July, 2019 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan 6,201 4.54 % June, 2022 BRB Medical Office Building fixed rate mortgage loan 6,269 4.27 % December, 2022 Desert Valley Medical Center fixed rate mortgage loan 5,047 3.62 % January, 2023 2704 North Tenaya Way fixed rate mortgage loan 7,105 4.95 % November, 2023 Tuscan Professional Building fixed rate mortgage loan 4,876 5.56 % June, 2025 Total, excluding net debt premium and net financing fees 102,989 Less net financing fees (353 ) Plus net debt premium 368 Total mortgages notes payable, non-recourse to us, net $ 103,004 (a.) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. (b.) This loan is scheduled to mature within the next twelve months, at which time we will decide whether to refinance pursuant to a new mortgage loan or repaid utilizing borrowings under our Credit Agreement. (c.) During April, 2017, upon its maturity, this $20.2 million fixed rate mortgage loan on the Peace Health Medical Clinic was repaid utilizing borrowings under our Credit Agreement. (d.) Upon its June, 2017 maturity date, we intend to repay this loan utilizing borrowings under our Credit Agreement. (e.) The maturity date on this loan has been extended to July, 2017, at which time we intend to repay the loan utilizing borrowings under our Credit Agreement. |
General - Additional Informatio
General - Additional Information (Detail) | Mar. 31, 2017Property |
5 Unconsolidated Limited Liability Companies | Minimum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Non-controlling equity interest, ownership percentage | 33.00% |
5 Unconsolidated Limited Liability Companies | Maximum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Non-controlling equity interest, ownership percentage | 95.00% |
Medical office buildings | Limited Liability Companies | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of real estate investments | 4 |
Relationship with Universal H21
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2016Subsidiary | Mar. 31, 2017USD ($)PropertyTime | Mar. 31, 2016USD ($) | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Annual advisory fee as percentage of average invested real estate assets | 0.70% | |||
Advisory fee | $ 866,000 | $ 767,000 | ||
Minimum | 5 Unconsolidated Limited Liability Companies | ||||
Related Party Transaction [Line Items] | ||||
Non-controlling equity interest, ownership percentage | 33.00% | |||
Maximum | 5 Unconsolidated Limited Liability Companies | ||||
Related Party Transaction [Line Items] | ||||
Non-controlling equity interest, ownership percentage | 95.00% | |||
Universal Health Services, Inc | ||||
Related Party Transaction [Line Items] | ||||
Number of term renewal options | Time | 6 | |||
Additional renewal terms | 5 years | |||
Number of medical office buildings and free standing emergency departments | Property | 17 | |||
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 | |||
Number of wholly-owned subsidiaries | Subsidiary | 3 | |||
Extended lease terms at existing lease rates | 2021-12 | |||
Number of renewal options at existing lease rates | Time | 3 | |||
Percentage ownership of outstanding shares | 5.80% | 5.80% | ||
Universal Health Services, Inc | Henderson Medical Plaza | ||||
Related Party Transaction [Line Items] | ||||
Amount invested in MOB under construction | $ 10,800,000 | |||
Universal Health Services, Inc | Customer Concentration Risk | Revenues | ||||
Related Party Transaction [Line Items] | ||||
Percentage of revenues generated from leases | 23.00% | 25.00% | ||
Universal Health Services, Inc | Customer Concentration Risk | Combined consolidated and unconsolidated revenue | ||||
Related Party Transaction [Line Items] | ||||
Percentage of revenues generated from leases | 19.00% | 20.00% | ||
Universal Health Services, Inc | Hospital Facilities Leased | ||||
Related Party Transaction [Line Items] | ||||
Number of hospital facilities leased | Property | 3 | |||
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 of Delaware Inc | ||||
Related Party Transaction [Line Items] | ||||
Annual incentive fee to Advisor as percentage of cash available for distribution | 20.00% | |||
Incentive fees | $ 0 | $ 0 | ||
Advisory fee | 866,000 | 767,000 | ||
Average invested real estate assets | $ 495,000,000 | $ 438,000,000 | ||
Universal Health Services of Delaware Inc | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Percentage of equity to be exceeded for incentive distribution | 15.00% |
Existing Lease Terms and Renewa
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Detail) | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
McAllen Medical Center | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 5,485,000 | |
End of Lease Term | 2021-12 | |
Renewal Term (years) | 10 years | [1] |
Wellington Regional Medical Center | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 3,030,000 | |
End of Lease Term | 2021-12 | |
Renewal Term (years) | 10 years | [2] |
Southwest Healthcare System, Inland Valley Campus | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 2,648,000 | |
End of Lease Term | 2021-12 | |
Renewal Term (years) | 10 years | [2] |
[1] | UHS has two 5-year renewal options at existing lease rates (through 2031). | |
[2] | UHS has two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Existing Lease Terms and Rene23
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Parenthetical) (Detail) - Universal Health Services, Inc | 3 Months Ended |
Mar. 31, 2017TimeRenewalOption | |
Operating Leased Assets [Line Items] | |
Number of renewal options at existing lease rates | 3 |
McAllen Medical Center | |
Operating Leased Assets [Line Items] | |
Number of renewal options at existing lease rates | 2 |
Renewal options term at existing lease rates | 5 years |
Renewal options at existing lease rates expiration year | 2,031 |
Wellington Regional Medical Center And Southwest Healthcare System | |
Operating Leased Assets [Line Items] | |
Number of renewal options at fair market value lease rates | RenewalOption | 2 |
Renewal options term at fair market value lease rates | 5 years |
Wellington Regional Medical Center And Southwest Healthcare System | Minimum | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2,022 |
Wellington Regional Medical Center And Southwest Healthcare System | Maximum | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2,031 |
Dividends and Equity Issuance24
Dividends and Equity Issuance Program - Additional Information (Detail) - USD ($) | 3 Months Ended | 42 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
Dividends and Equity Issuance [Line Items] | ||||
Dividends declared and paid | $ 8,907,000 | $ 8,596,000 | ||
Declared and paid dividends, per share | $ 0.655 | $ 0.645 | ||
Securities, aggregate sales price | $ 23,300,000 | |||
At-The-Market (ATM) Equity Issuance Program | ||||
Dividends and Equity Issuance [Line Items] | ||||
Share issued | 0 | 829,916 | ||
Average sale price per share | $ 48.77 | |||
Net cash proceeds from stock issued | $ 38,800,000 | |||
Payment of stock issuance cost | 1,700,000 | |||
Payments for stock issuance | 1,000,000 | |||
At-The-Market (ATM) Equity Issuance Program | Other Expense | ||||
Dividends and Equity Issuance [Line Items] | ||||
Payments for stock issuance | $ 680,000 |
Acquisitions, Dispositions an25
Acquisitions, Dispositions and New Construction - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | ||||
Nov. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)Acquisition | Mar. 31, 2016USD ($) | Mar. 12, 2017 | |
Business Acquisitions And Dispositions [Line Items] | ||||||
Number of acquisitions | Acquisition | 0 | |||||
Cash received for property exchange transaction | $ 0 | |||||
Henderson Medical Plaza | Universal Health Services, Inc | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Maximum amount of investment for development and construction | $ 21,100,000 | $ 21,100,000 | ||||
Amount invested in MOB under construction | $ 10,800,000 | |||||
2704 North Tenaya Way | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Total purchase price | $ 15,300,000 | |||||
Non-recourse third-party debt | $ 7,100,000 | |||||
Frederick Crestwood Medical Office Building | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Total purchase price | $ 24,300,000 | |||||
Madison Professional Office Building | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Total purchase price | $ 10,100,000 | |||||
Madison Professional Office Building | Lease Agreements | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Renewal Term (years) | 6 years 2 months 12 days | |||||
Medical office buildings | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Acquired intangible assets include in-place leases amortization period | 6 years 2 months 12 days | |||||
St. Mary's Professional Office Building | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Entitled to aggregate of net cash proceeds from divestiture | 57,300,000 | |||||
Net sale proceeds due | 11,300,000 | |||||
Gain on divestiture of property | $ 27,200,000 | |||||
Arlington Medical Properties | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Ownership prior to minority interest purchase | 85.00% | |||||
Remaining percentage owned by third party member | 15.00% | |||||
Total purchase price | $ 7,900,000 | |||||
Repayment of loan | $ 21,400,000 |
Allocation of Purchase Price to
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Detail) - Medical office buildings $ in Thousands | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | |
Land | $ 2,328 |
Buildings and improvements | 6,523 |
Intangible assets | 1,209 |
Deposit | (150) |
Net cash paid | $ 9,910 |
Summarized Financial Informat27
Summarized Financial Information of Equity Affiliates - Additional Information (Detail) - Property | 3 Months Ended | |
Mar. 31, 2017 | Mar. 12, 2017 | |
Limited Liability Companies | Medical office buildings | ||
Schedule Of Equity Method Investments [Line Items] | ||
Number of real estate investments | 4 | |
Minimum | ||
Schedule Of Equity Method Investments [Line Items] | ||
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] | ||
Number of days for Non-Offering Member either to purchase or sell its entire ownership interest to or from Offering Member | 90 days | |
4 Unconsolidated Limited Liability Companies / Limited Partner | Minimum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Non-controlling equity interest, ownership percentage | 33.00% | |
4 Unconsolidated Limited Liability Companies / Limited Partner | Maximum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Non-controlling equity interest, ownership percentage | 95.00% | |
Arlington Medical Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Non-controlling equity interest, ownership percentage | 85.00% | |
Remaining percentage owned by third party member | 15.00% |
Limited Liability Companies Acc
Limited Liability Companies Accounted for Under Equity Method (Detail) - Equity Method Investments | 3 Months Ended | |
Mar. 31, 2017 | ||
Suburban Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 33.00% | |
Property Owned by LLC | St. Matthews 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] |
Grayson Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [2] |
Property Owned by LLC | Texoma Medical Plaza | [2] |
FTX MOB Phase II limited partnership | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [3] |
Property Owned by LLC | Forney Medical Plaza II | [3] |
[1] | This LLC has a third-party term loan, which is non-recourse to us, of $8.6 million outstanding as of March 31, 2017. | |
[2] | 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, which is non-recourse to us, of $14.4 million outstanding as of March 31, 2017. | |
[3] | We have committed to invest up to $2.5 million in equity and debt financing, of which $2.1 million has been funded as of March 31, 2017. This LLC has a third-party term loan, which is non-recourse to us, of $5.3 million outstanding as of March 31, 2017. |
Limited Liability Companies A29
Limited Liability Companies Accounted for Under Equity Method (Parenthetical) (Detail) $ in Millions | Mar. 31, 2017USD ($) |
Brunswick Associates | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | $ 8.6 |
Grayson Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 14.4 |
FTX MOB Phase II limited partnership | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 5.3 |
Committed investment in equity and debt financing, funded | 2.1 |
Commitment to investment | $ 2.5 |
Condensed Combined Statement of
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Equity Method Investments And Joint Ventures [Abstract] | |||
Revenues | $ 3,583 | $ 3,736 | |
Operating expenses | 1,250 | 1,353 | |
Depreciation and amortization | 643 | 613 | |
Interest, net | 562 | 657 | |
Net income | 1,128 | 1,113 | |
Our share of net income | [1] | $ 1,077 | $ 1,059 |
[1] | Our share of net income for the three months ended March 31, 2017 and 2016 includes approximately $284,000 and $296,000, respectively, of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017. |
Condensed Combined Statement 31
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Parenthetical) (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Arlington Medical Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Interest income earned on various advances made to LLCs | $ 284,000 | $ 296,000 |
Condensed Combined Balance Shee
Condensed Combined Balance Sheets of Limited Liabilities Accounted for under Equity Method (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments And Joint Ventures [Abstract] | ||
Net property, including CIP | $ 33,816 | $ 60,970 |
Other assets | 3,685 | 4,598 |
Total assets | 37,501 | 65,568 |
Liabilities | 2,726 | 3,334 |
Mortgage notes payable, non-recourse to us | 28,222 | 28,367 |
Advances payable to us | 21,638 | |
Equity | 6,553 | 12,229 |
Total liabilities and equity | 37,501 | 65,568 |
Our share of equity in and advances to LLCs reflected as: | ||
Investments in LLCs | 4,722 | 13,955 |
Advances to LLCs | 21,638 | |
Investments in and advances to LLCs before amounts included in accrued expenses and other liabilities | 4,722 | 35,593 |
Amounts included in accrued expenses and other liabilities | (1,476) | (1,862) |
Our share of equity in and advances to LLCs, net | $ 3,246 | $ 33,731 |
Aggregate Principal Amounts Due
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | $ 28,222 | $ 28,367 | |
Equity Method Investments | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | 28,222 | 28,367 |
Equity Method Investments | FTX MOB Phase II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 5,267 | 5,301 |
Maturity Date | [2] | 2017-08 | |
Equity Method Investments | Grayson Properties | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 14,375 | 14,438 |
Maturity Date | 2021-09 | ||
Equity Method Investments | Brunswick Associates | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 8,580 | $ 8,628 |
Maturity Date | 2024-12 | ||
[1] | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. | ||
[2] | This loan is scheduled to mature within the next twelve months, at which time it will be refinanced pursuant to: (i) a new third-party mortgage loan; (ii) a member loan extended from us to the LLC, or; (iii) equity contributions to the LLC by us and the third-party member. Funds required from us to the LLC for either the member loan or our share of an equity contribution would likely be borrowed under our Credit Agreement. |
Debt and Financial Instrument34
Debt and Financial Instruments - Additional Information (Detail) | Mar. 31, 2017USD ($)MortgageLoan | Mar. 27, 2015USD ($)Option | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($)MortgageLoan | Sep. 30, 2016USD ($)Derivative | Jun. 30, 2016USD ($)Derivative | Mar. 31, 2016USD ($) | Mar. 31, 2014USD ($)Derivative | Sep. 30, 2013USD ($)Derivative | Dec. 31, 2016USD ($)MortgageLoan | May 24, 2016USD ($) | ||
Debt Instrument [Line Items] | |||||||||||||
Outstanding borrowings under revolving credit agreement | $ 169,900,000 | $ 169,900,000 | $ 201,500,000 | ||||||||||
Outstanding borrowings under letter of credit | 2,700,000 | 2,700,000 | |||||||||||
Available borrowing capacity | $ 77,400,000 | $ 77,400,000 | |||||||||||
Number of non-recourse mortgages | MortgageLoan | 14 | 14 | 15 | ||||||||||
Balance of Non Recourse Mortgages | $ 102,989,000 | [1] | $ 102,989,000 | [1] | $ 114,200,000 | ||||||||
Mortgage and other notes payable, non-recourse to us, debt premium | 368,000 | [1] | 368,000 | [1] | 436,000 | ||||||||
Financing fees net | 353,000 | [1] | 353,000 | [1] | 381,000 | ||||||||
Repayments of mortgage loan | 11,174,000 | $ 790,000 | |||||||||||
Mortgage loan fair value | 105,000,000 | 105,000,000 | $ 115,700,000 | ||||||||||
Interest Rate Cap | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of interest rate cap agreements | Derivative | 1 | 1 | 2 | 1 | |||||||||
Notional amount | $ 30,000,000 | $ 30,000,000 | $ 20,000,000 | $ 10,000,000 | |||||||||
Premium paid | $ 55,000 | $ 115,000 | $ 134,500 | $ 136,000 | |||||||||
Expiration date of interest rate cap | Mar. 31, 2019 | Mar. 31, 2019 | Jan. 31, 2017 | Jan. 31, 2017 | |||||||||
Summerlin Hospital Medical Office Building III floating rate mortgage loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of mortgage loan | 10,300,000 | ||||||||||||
Summerlin Hospital Medical Office Building III fixed rate mortgage loan | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Refinanced this property with fixed rate mortgage loan | $ 13,200,000 | ||||||||||||
Maturity Date | 2024-04 | ||||||||||||
Loan interest rate fixed percentage | 4.03% | ||||||||||||
LIBOR | Interest Rate Cap | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Derivative instruments, LIBOR rate | 1.50% | 1.50% | 1.50% | 1.50% | |||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding borrowing | $ 250,000,000 | $ 250,000,000 | |||||||||||
Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding borrowing | $ 185,000,000 | $ 250,000,000 | |||||||||||
Unsecured revolving amended credit agreement terminated date | 2019-03 | ||||||||||||
Number of additional one year extension options | Option | 1 | ||||||||||||
Proceeds from Lines of Credit | $ 50,000,000 | ||||||||||||
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 | 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%. | ||||||||||||
Fee payable on unused portion of commitment | 0.25% | ||||||||||||
Credit Agreement | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the reference rate | 1.625% | ||||||||||||
Credit Agreement | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the reference rate | 0.625% | ||||||||||||
Credit Agreement | Swingline/Short-Term Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding borrowing | 20,000,000 | ||||||||||||
Credit Agreement | Letters of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding borrowing | $ 40,000,000 | ||||||||||||
Credit Agreement | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fee payable on unused portion of commitment | 0.20% | ||||||||||||
Credit Agreement | Minimum | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the reference rate | 1.50% | ||||||||||||
Margin points added to the base rate | 1.00% | ||||||||||||
Credit Agreement | Minimum | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the reference rate | 0.50% | ||||||||||||
Credit Agreement | Minimum | Federal Funds Effective Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the base rate | 0.50% | ||||||||||||
Credit Agreement | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fee payable on unused portion of commitment | 0.40% | ||||||||||||
Credit Agreement | Maximum | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the reference rate | 2.00% | ||||||||||||
Credit Agreement | Maximum | Base Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Margin points added to the reference rate | 1.00% | ||||||||||||
[1] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. |
Summary of Required Compliance
Summary of Required Compliance Ratios in Connection with Terms of Credit Agreement (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Covenant, Tangible net worth | $ 125,000 |
Tangible net worth | $ 191,372 |
Total leverage | 44.30% |
Secured leverage | 16.10% |
Unencumbered leverage | 40.30% |
Fixed charge coverage | 3.70% |
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 | 1.50% |
Summary of Outstanding Mortgage
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | |||
Debt Instrument [Line Items] | ||||
Outstanding Balance | $ 102,989,000 | [1] | $ 114,200,000 | |
Less net financing fees | (353,000) | [1] | (381,000) | |
Plus net debt premium | 368,000 | [1] | 436,000 | |
Total mortgages notes payable, non-recourse to us, net | 103,004,000 | [1] | $ 114,217,000 | |
Peace Health fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[2] | $ 20,180,000 | ||
Debt Instrument Interest Rate Stated Percentage | [2] | 5.64% | ||
Maturity Date | [2] | 2017-04 | ||
Medical Center of Western Connecticut fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[3] | $ 4,500,000 | ||
Debt Instrument Interest Rate Stated Percentage | [3] | 6.00% | ||
Maturity Date | [3] | 2017-06 | ||
Auburn Medical II floating rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[4] | $ 6,668,000 | ||
Debt Instrument Interest Rate Stated Percentage | [4] | 3.53% | ||
Maturity Date | [4] | 2017-07 | ||
Summerlin Hospital Medical Office Building II fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[5] | $ 11,007,000 | ||
Debt Instrument Interest Rate Stated Percentage | [5] | 5.50% | ||
Maturity Date | [5] | 2017-10 | ||
Phoenix Children's East Valley Care Center Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[5] | $ 6,164,000 | ||
Debt Instrument Interest Rate Stated Percentage | [5] | 5.88% | ||
Maturity Date | [5] | 2017-12 | ||
Centennial Hills Medical Office Building floating rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[5] | $ 9,968,000 | ||
Debt Instrument Interest Rate Stated Percentage | [5] | 4.06% | ||
Maturity Date | [5] | 2018-01 | ||
Sparks Medical Building/Vista Medical Terrace Floating Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1],[5] | $ 4,202,000 | ||
Debt Instrument Interest Rate Stated Percentage | [5] | 4.06% | ||
Maturity Date | [5] | 2018-02 | ||
Rosenberg Children's Medical Plaza Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 8,103,000 | ||
Debt Instrument Interest Rate Stated Percentage | 4.85% | |||
Maturity Date | 2018-05 | |||
Vibra Hospital-Corpus Christi fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 2,699,000 | ||
Debt Instrument Interest Rate Stated Percentage | 6.50% | |||
Maturity Date | 2019-07 | |||
700 Shadow Lane and Goldring MOBs fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 6,201,000 | ||
Debt Instrument Interest Rate Stated Percentage | 4.54% | |||
Maturity Date | 2022-06 | |||
BRB Medical Office Building fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 6,269,000 | ||
Debt Instrument Interest Rate Stated Percentage | 4.27% | |||
Maturity Date | 2022-12 | |||
Desert Valley Medical Center Floating Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 5,047,000 | ||
Debt Instrument Interest Rate Stated Percentage | 3.62% | |||
Maturity Date | 2023-01 | |||
2704 North Tenaya Way fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 7,105,000 | ||
Debt Instrument Interest Rate Stated Percentage | 4.95% | |||
Maturity Date | 2023-11 | |||
Tuscan Professional Building fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 4,876,000 | ||
Debt Instrument Interest Rate Stated Percentage | 5.56% | |||
Maturity Date | 2025-06 | |||
[1] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. | |||
[2] | During April, 2017, upon its maturity, this $20.2 million fixed rate mortgage loan on the Peace Health Medical Clinic was repaid utilizing borrowings under our Credit Agreement. | |||
[3] | Upon its June, 2017 maturity date, we intend to repay this loan utilizing borrowings under our Credit Agreement. | |||
[4] | The maturity date on this loan has been extended to July, 2017, at which time we intend to repay the loan utilizing borrowings under our Credit Agreement. | |||
[5] | This loan is scheduled to mature within the next twelve months, at which time we will decide whether to refinance pursuant to a new mortgage loan or repaid utilizing borrowings under our Credit Agreement. |
Summary of Outstanding Mortga37
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Debt Instrument [Line Items] | ||||
Repayments of mortgage loan | $ 11,174 | $ 790 | ||
Peace Health fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [1] | 2017-04 | ||
Peace Health fixed rate mortgage loan | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Repayments of mortgage loan | $ 20,200 | |||
Medical Center of Western Connecticut fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [2] | 2017-06 | ||
Auburn Medical II floating rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Maturity date | [3] | 2017-07 | ||
[1] | During April, 2017, upon its maturity, this $20.2 million fixed rate mortgage loan on the Peace Health Medical Clinic was repaid utilizing borrowings under our Credit Agreement. | |||
[2] | Upon its June, 2017 maturity date, we intend to repay this loan utilizing borrowings under our Credit Agreement. | |||
[3] | The maturity date on this loan has been extended to July, 2017, at which time we intend to repay the loan utilizing borrowings under our Credit Agreement. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |