Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 13,745,138 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Revenues: | |||||
Base rental - Non-related parties | $ 10,217 | $ 10,116 | $ 20,544 | $ 20,086 | |
Bonus rental - UHS facilities | 1,204 | 1,242 | 2,530 | 2,530 | |
Revenues, Total | 20,111 | 18,145 | 38,650 | 35,895 | |
Expenses: | |||||
Depreciation and amortization | 6,111 | 6,295 | 12,398 | 12,440 | |
Other operating expenses | 5,445 | 4,923 | 10,653 | 9,628 | |
Transaction costs | 56 | 126 | |||
Costs and Expenses, Total | 12,504 | 12,148 | 24,903 | 23,934 | |
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense, hurricane insurance recovery proceeds and gain | 7,607 | 5,997 | 13,747 | 11,961 | |
Equity in income of unconsolidated LLCs | [1] | 425 | 498 | 854 | 1,575 |
Hurricane insurance recovery proceeds in excess of damaged property write-downs | 4,535 | ||||
Hurricane business interruption insurance recovery proceeds | 194 | 1,162 | |||
Gain on Arlington transaction | 27,196 | ||||
Interest expense, net | (2,421) | (2,462) | (4,889) | (5,137) | |
Net income | $ 5,805 | $ 4,033 | $ 15,409 | $ 35,595 | |
Basic earnings per share | $ 0.42 | $ 0.30 | $ 1.12 | $ 2.62 | |
Diluted earnings per share | $ 0.42 | $ 0.30 | $ 1.12 | $ 2.62 | |
Weighted average number of shares outstanding - Basic and Diluted | 13,720 | 13,583 | 13,719 | 13,581 | |
Management Service | |||||
Expenses: | |||||
Advisory fees to UHS | $ 948 | $ 874 | $ 1,852 | $ 1,740 | |
UHS Facilities | |||||
Revenues: | |||||
Base rental - UHS facilities | 4,187 | 4,303 | 8,363 | 8,383 | |
UHS Facilities | Tenant Reimbursements And Other | |||||
Revenues: | |||||
Tenant reimbursements and other | 303 | 245 | 598 | 464 | |
Non-Related Parties | Tenant Reimbursements And Other | |||||
Revenues: | |||||
Tenant reimbursements and other | $ 4,200 | $ 2,239 | $ 6,615 | $ 4,432 | |
[1] | Our share of net income for the six months ended June 30, 2017 includes approximately $284,000 of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017, therefore there was no interest income earned by us on this advance subsequent to March, 2017. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 5,805 | $ 4,033 | $ 15,409 | $ 35,595 |
Other comprehensive income/(loss): | ||||
Unrealized derivative gain/(loss) on interest rate caps | 6 | (75) | 154 | (93) |
Total other comprehensive income/(loss): | 6 | (75) | 154 | (93) |
Total comprehensive income | $ 5,811 | $ 3,958 | $ 15,563 | $ 35,502 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Real Estate Investments: | |||
Buildings and improvements and construction in progress | $ 553,970 | $ 546,634 | |
Accumulated depreciation | (163,434) | (153,379) | |
Real Estate Investment Property, Net, Total | 390,536 | 393,255 | |
Land | 53,396 | 53,142 | |
Net Real Estate Investments | 443,932 | 446,397 | |
Investments in limited liability companies ("LLCs") | 4,655 | 4,671 | |
Other Assets: | |||
Cash and cash equivalents | 5,732 | 3,387 | |
Base and bonus rent and other receivables from UHS | 2,610 | 2,680 | |
Rent receivable - other | 6,829 | 6,422 | |
Intangible assets (net of accumulated amortization of $25.7 million and $28.7 million at June 30, 2018 and December 31, 2017, respectively) | 19,253 | 20,559 | |
Deferred charges and other assets, net | 7,991 | 5,892 | |
Total Assets | 491,002 | 490,008 | |
Liabilities: | |||
Line of credit borrowings | 197,250 | 181,050 | |
Mortgage notes payable, non-recourse to us, net | 52,806 | [1] | 75,359 |
Accrued interest | 504 | 540 | |
Accrued expenses and other liabilities | 12,193 | 12,188 | |
Dividends payable | 9,156 | ||
Tenant reserves, deposits and deferred and prepaid rents | 11,103 | 10,310 | |
Total Liabilities | 283,012 | 279,447 | |
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: 2018 - 13,744,229; 2017 - 13,735,369 | 137 | 137 | |
Capital in excess of par value | 265,544 | 265,335 | |
Cumulative net income | 633,529 | 618,120 | |
Cumulative dividends | (691,518) | (673,175) | |
Accumulated other comprehensive income | 298 | 144 | |
Total Equity | 207,990 | 210,561 | |
Total Liabilities and Equity | $ 491,002 | $ 490,008 | |
[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 | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 25.7 | $ 28.7 |
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 | 13,744,229 | 13,735,369 |
Common shares, outstanding | 13,744,229 | 13,735,369 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 15,409,000 | $ 35,595,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,288,000 | 12,476,000 |
Amortization of debt premium | (23,000) | (100,000) |
Stock-based compensation expense | 254,000 | 252,000 |
Hurricane insurance recovery proceeds in excess of damaged property write-downs | (4,535,000) | |
Gain on Arlington transaction | (27,196,000) | |
Changes in assets and liabilities: | ||
Rent receivable | (337,000) | (683,000) |
Accrued expenses and other liabilities | (445,000) | (398,000) |
Tenant reserves, deposits and deferred and prepaid rents | 713,000 | 79,000 |
Accrued interest | (36,000) | (62,000) |
Leasing costs paid | (597,000) | (403,000) |
Other, net | 517,000 | 783,000 |
Net cash provided by operating activities | 23,208,000 | 20,343,000 |
Cash flows from investing activities: | ||
Investments in LLCs | (369,000) | (532,000) |
Repayments of advances made to LLC | 216,000 | |
Cash distributions in excess of income from LLCs | 501,000 | 734,000 |
Additions to real estate investments, net | (4,246,000) | (6,537,000) |
Cash proceeds received from divestiture of property, net of restricted cash | 0 | 53,967,000 |
Restricted cash proceeds from divestiture of property | 11,253,000 | |
Hurricane insurance recovery proceeds in excess of damaged property write-downs | 4,535,000 | |
Hurricane remediation payments | (192,000) | |
Deposits on real estate | (150,000) | |
Net cash paid for acquisition of property | (4,053,000) | |
Cash paid to acquire minority interests in majority-owned LLCs | (7,890,000) | |
Net cash (used in)/provided by investing activities | (3,824,000) | 51,061,000 |
Cash flows from financing activities: | ||
Net borrowings/(repayments) on line of credit | 16,200,000 | (18,650,000) |
Repayments of mortgage notes payable | (22,585,000) | (36,473,000) |
Proceeds from mortgage notes payable | 13,200,000 | |
Financing costs paid | (1,527,000) | (284,000) |
Dividends paid | (9,187,000) | (17,887,000) |
Issuance of shares of beneficial interest, net | 60,000 | 122,000 |
Net cash used in financing activities | (17,039,000) | (59,972,000) |
Increase in cash, cash equivalents and restricted cash | 2,345,000 | 11,432,000 |
Cash, cash equivalents and restricted cash, beginning of period | 3,387,000 | 3,930,000 |
Cash, cash equivalents and restricted cash, end of period | 5,732,000 | 15,362,000 |
Supplemental disclosures of cash flow information: | ||
Interest paid | $ 4,711,000 | $ 5,039,000 |
General
General | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | (1) General This Quarterly Report on Form 10-Q is for the quarter ended June 30, 2018. 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 June 30, 2018, 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, 2017. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Certain prior period amounts on our statement of cash flows have been reclassified to conform to the current period presentation in connection with our adoption of ASU No. 2016-18, Restricted Cash |
Relationship with Universal Hea
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
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 20% and 22% of our consolidated revenues for the three months ended June 30, 2018 and 2017, respectively, and approximately 21% and 23% of our consolidated revenues for the six months ended June 30, 2018 and 2017, 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. The aggregate revenues generated from UHS-related tenants comprised approximately 28% and 32% of our consolidated revenues during the three-month periods ended June 30, 2018 and 2017, respectively, and approximately 30% and 32% of our consolidated revenues during the six-month periods ended June 30, 2018 and 2017, respectively. 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, 2018, McAllen Medical Center, a wholly-owned subsidiary of UHS, provided notice to us, exercising the 5-year renewal option on their lease. The renewal extended the lease term on this facility, at the existing lease rate, to December, 2026. 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, 2026 5 (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 one 5-year renewal option at the existing lease rate (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 Medical Center, a newly constructed acute care hospital that is owned and operated by a subsidiary of UHS and was completed and opened during the fourth quarter of 2016. A ground lease has been executed between the limited liability company that owns the MOB and a subsidiary of UHS, the terms of which include a seventy-five year lease term with two, ten-year renewal options at the lessee’s option at an adjusting lease rate. We have invested net cash of approximately $13.0 million on the development and construction of this MOB as of June 30, 2018. 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 2017, 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 2018 pursuant to the same terms as the Advisory Agreement in place since 2013. The average real estate assets for advisory fee calculation purposes exclude certain items from our consolidated balance sheet such as, among other things, accumulated depreciation, cash and cash equivalents, base and bonus rent receivables, deferred charges and other assets. The advisory fee is payable quarterly, subject to adjustment at year-end based upon our audited financial statements. In addition, the Advisor is entitled to an annual incentive fee equal to 20% of the amount by which cash available for distribution to shareholders for each year, as defined in the Advisory Agreement, exceeds 15% of our equity as shown on our consolidated balance sheet, determined in accordance with generally accepted accounting principles without reduction for return of capital dividends. The Advisory Agreement defines cash available for distribution to shareholders as net cash flow from operations less deductions for, among other things, amounts required to discharge our debt and liabilities and reserves for replacement and capital improvements to our properties and investments. No incentive fees were paid at any time since our inception since the incentive fee requirements were not achieved. Advisory fees incurred and paid (or payable) to UHS amounted to $948,000 and $874,000 for the three months ended June 30, 2018 and 2017, respectively, and were based upon average invested real estate assets of $542 million and $499 million for the three-month periods ended June 30, 2018 and 2017, respectively. Advisory fees incurred and paid (or payable) to UHS amounted to $1.9 million and $1.7 million for the six months ended June 30, 2018 and 2017, respectively, and were based upon average invested real estate assets of $529 million and $497 million for the six-month periods ended June 30, 2018 and 2017, respectively Officers and Employees: Our officers are all employees of a wholly-owned subsidiary of UHS and although as of June 30, 2018 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: At each of June 30, 2018 and December 31, 2017, UHS owned 5.7%, 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 aggregate revenues generated from the UHS-related tenants comprised 28% and 32% of our consolidated revenues during the three-month periods ended June 30, 2018 and 2017, respectively, and 30% and 32% of our consolidated revenues during the six-month periods ended June 30, 2018 and 2017, 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
Dividends | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Dividends | (3) Dividends Dividends: We declared dividends of $9.2 million, or $.67 per share, during the second quarter of 2018, which were paid on July 3, 2018. We declared and paid dividends of $9.0 million, or $.66 per share, during the second quarter of 2017. During the six-month period ended June 30, 2018, we declared dividends of $18.3 million, or $1.335 per share, $9.2 million of which was paid on July 3, 2018. We declared and paid dividends of $17.9 million, or $1.315 per share, during the six-month period ended June 30, 2017. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | (4) Acquisitions and Dispositions Six Months Ended June 30, 2018: Acquisitions: In June, 2018, we acquired the Beaumont Medical Sleep Center Building located in Southfield, Michigan for a purchase price of approximately $4.0 million. This building is 100% leased under the terms of a triple net lease with a remaining initial lease term of approximately 9.5 years at the time of purchase, with two, five year renewal options. Dispositions: There were no dispositions during the first six months of 2018. Six Months Ended June 30, 2017: Acquisitions: There were no acquisitions during the first six 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. The divestiture of St. Mary’s generated an aggregate of approximately $57.3 million of net cash proceeds to us (approximately $11.3 million of which was held as restricted cash by a qualified 1031 exchange intermediary until the third quarter of 2017). These proceeds, which were 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. Our results of operations for the six-month period ended June 30, 2017 included a net gain of $27.2 million (net of related transaction costs) recorded in connection with this transaction. |
Summarized Financial Informatio
Summarized Financial Information of Equity Affiliates | 6 Months Ended |
Jun. 30, 2018 | |
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. 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 Condensed 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 Condensed Consolidated Statements of Cash Flows. At June 30, 2018, we have non-controlling equity investments or commitments in four jointly-owned LLCs/LPs which own MOBs. As of June 30, 2018, 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 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. 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 June 30, 2018: Name of LLC/LP Ownership Property Owned by LLC/LP 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 $8.4 million outstanding as of June 30, 2018. (b.) This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LP has a third-party term loan, which is non-recourse to us, of $14.1 million outstanding as of June 30, 2018. (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 June 30, 2018. This LP has a third-party term loan, which is non-recourse to us, of $5.1 million outstanding as of June 30, 2018. Below are the condensed combined statements of income (unaudited) for the LLCs/LPs accounted for under the equity method during the three and six months ended June 30, 2018 and 2017. The six months ended June 30, 2017 include the financial results of Arlington Medical Properties, LLC, through the March 13, 2017 divestiture date. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (amounts in thousands) (amounts in thousands) Revenues $ 2,451 $ 2,410 $ 4,913 $ 5,993 Operating expenses 977 939 1,935 2,189 Depreciation and amortization 438 421 895 1,064 Interest, net 328 337 656 899 Net income $ 708 $ 713 $ 1,427 $ 1,841 Our share of net income (a.) $ 425 $ 498 $ 854 $ 1,575 (a.) Our share of net income for the six months ended June 30, 2017 includes approximately $284,000 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, therefore there was no interest income earned by us on this advance subsequent to 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 June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (amounts in thousands) Net property, including construction in progress $ 32,345 $ 33,111 Other assets 3,659 3,560 Total assets $ 36,004 $ 36,671 Other liabilities $ 2,654 $ 3,067 Mortgage notes payable, non-recourse to us 27,548 27,839 Equity 5,802 5,765 Total liabilities and equity $ 36,004 $ 36,671 Investments in LLCs before amounts included in accrued expenses and other liabilities $ 4,655 $ 4,671 Amounts included in accrued expenses and other liabilities (2,011 ) (1,895 ) Our share of equity in LLCs, net $ 2,644 $ 2,776 As of June 30, 2018, and December 31, 2017, 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 6/30/2018 12/31/2017 Maturity Date FTX MOB Phase II (5.00% fixed rate mortgage loan) $ 5,134 $ 5,202 October, 2020 Grayson Properties (5.034% fixed rate mortgage loan) 14,060 14,191 September, 2021 Brunswick Associates (3.64% fixed rate mortgage loan) 8,354 8,446 December, 2024 $ 27,548 $ 27,839 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. 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 | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | (6) Recent Accounting Pronouncements On January 1, 2018, we adopted ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments Restricted Cash, (In thousands) June 30, 2018 June 30, 2017 Cash and cash equivalents $ 5,732 $ 4,109 Restricted cash - 11,253 Total Cash, Cash Equivalents and Restricted Cash $ 5,732 $ 15,362 In February 2016, the FASB issued ASU 2016-02, Leases On January 1, 2018, we adopted ASU 2014-09, Revenue From Contracts With Customers Our revenues consist primarily of rentals received from tenants, which are comprised of minimum rent (base rentals) and bonus rentals and reimbursements from tenants for their pro-rata share of expenses such as common area maintenance costs, real estate taxes and utilities. We apply FASB ASC Topic 606, “Revenue from Contracts with Customers” with respect to tenant reimbursement and other property income, which totaled $2.8 million and $2.5 million for the three months ended June 30, 2018 and 2017, respectively, and $5.5 million and $4.9 million for the six months ended June 30, 2018 and 2017, respectively. The 2018 three and six month tenant reimbursement and other property income amounts also include a $1.7 million early lease termination fee recorded during the three months ended June 30, 2018. Tenant reimbursements for operating expenses are accrued as revenue and generally due monthly from tenants. Since payments with respect to tenant reimbursement income are generally due monthly, no contract assets or liabilities have been recognized. Revenue consisting of rental income from leasing arrangements are specifically excluded from FASB ASC Topic 606. |
Debt and Financial Instruments
Debt and Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
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 $300 million revolving credit agreement, 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. 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 agreement 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, 2018, we entered into a revolving credit agreement (“Credit Agreement”) which, among other things, increased our borrowing capacity by $50 million to $300 million and extended the maturity date from our previously existing facility. The replacement Credit Agreement, which is scheduled to mature in March, 2022, includes a $40 million sublimit for letters of credit and a $30 million sub limit for swingline/short-term loans. The Credit Agreement also provides for options to extend the maturity date for two additional six month periods. Additionally, the Credit Agreement includes 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 certain of 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 1.10% to 1.35% or at the Base Rate plus an applicable margin ranging from 0.10% to 0.35%. The Credit Agreement defines “Base Rate” as the greater 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 facility fee of 0.15% to 0.35% will be charged on the total commitment of the Credit Agreement. The margins over LIBOR, Base Rate and the facility fee are based upon our total leverage ratio. At June 30, 2018, the applicable margin over the LIBOR rate was 1.15%, the margin over the Base Rate was 0.15%, and the facility fee was 0.20%. At June 30, 2018, we had $197.3 million of outstanding borrowings under our Credit Agreement and $102.7 million of available borrowing capacity. There are no compensating balance requirements. As disclosed below, during the first six months of 2018, we repaid an aggregate of $21.7 million on three mortgages utilizing borrowings under our Credit Agreement. 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 June 30, 2018. 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 June 30, 2018 Tangible net worth > =$125,000 $ 188,737 Total leverage < 60% 39.9 % Secured leverage < 30% 8.1 % Unencumbered leverage < 60% 36.2 % Fixed charge coverage > 1.50x 4.1x As indicated on the following table, we have eight mortgages, all of which are non-recourse to us, included on our condensed consolidated balance sheet as of June 30, 2018 (amounts in thousands): Facility Name Outstanding Balance (in Interest Rate Maturity Date Vibra Hospital-Corpus Christi fixed rate mortgage loan $ 2,573 6.50 % July, 2019 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan 5,961 4.54 % June, 2022 BRB Medical Office Building fixed rate mortgage loan 6,028 4.27 % December, 2022 Desert Valley Medical Center fixed rate mortgage loan 4,877 3.62 % January, 2023 2704 North Tenaya Way fixed rate mortgage loan 6,940 4.95 % November, 2023 Summerlin Hospital Medical Office Building III fixed rate mortgage loan 13,198 4.03 % April, 2024 Tuscan Professional Building fixed rate mortgage loan 4,273 5.56 % June, 2025 Phoenix Children’s East Valley Care Center fixed rate mortgage loan 9,307 3.95 % January, 2030 Total, excluding net debt premium and net financing fees 53,157 Less net financing fees (625 ) Plus net debt premium 274 Total mortgages notes payable, non-recourse to us, net $ 52,806 (a) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. On February 13, 2018, upon its maturity, a $4.1 million floating rate mortgage loan on the Sparks Medical Building/Vista Medical Terrace was fully repaid utilizing borrowings under our Credit Agreement. On April 5, 2018, upon its maturity, a $9.7 million floating rate mortgage loan on the Centennial Hills Medical Office Building was fully repaid utilizing borrowings under our Credit Agreement. On May 2, 2018, upon its maturity, a $7.9 million fixed rate mortgage loan on the Rosenberg Children’s Medical Plaza was fully repaid utilizing borrowings under our Credit Agreement. The mortgages are secured by the real property of the buildings as well as property leases and rents. The eight mortgages outstanding as of June 30, 2018 had a combined fair value of approximately $53.0 million. The fair value of our debt was computed based upon quotes received from financial institutions. We consider these to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosure in connection with debt instruments. 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, 2017, we had eleven mortgages, all of which were non-recourse to us, included in our consolidated balance sheet. The combined outstanding balance of these eleven mortgages was $75.7 million and had a combined fair value of approximately $76.3 million. Financial Instruments: 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 and expires in March, 2019. From inception through June 30, 2018, we received or accrued approximately $39,000 in payments made to us by the counterparties (all received during the first six months of 2018) pursuant to the terms of these caps. 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. From inception through June 30, 2018, we received or accrued approximately $39,000 in payments made to us by the counterparties (all received during the first six months of 2018) pursuant to the terms of these caps. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
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. No individual property meets the requirements necessary to be considered its own segment. |
Impact of Hurricane Harvey
Impact of Hurricane Harvey | 6 Months Ended |
Jun. 30, 2018 | |
Extraordinary And Unusual Items [Abstract] | |
Impact of Hurricane Harvey | (9) Impact of Hurricane Harvey In late August, 2017, five of our medical office buildings listed below located in the Houston, Texas area incurred extensive water damage as a result of Hurricane Harvey. Until various times during the second quarter of 2018, these properties were temporarily closed and non-operational as we continued to reconstruct and restore them to operational condition. As of June 30, 2018, reconstruction on all of the occupied space in these properties has been completed and operations have resumed. During 2018, pursuant to the terms of a global settlement with our commercial property insurance carrier, we received $5.5 million of additional insurance recovery proceeds bringing the aggregate hurricane-related insurance recoveries to $12.5 million. The aggregate insurance proceeds recoveries, which are net of applicable deductibles, covered substantially all of the costs incurred related to the remediation, repair and reconstruction of each of these properties as well as business interruption recoveries for the lost income related to each of these properties during the period they were non-operational. Our financial results for the three months ended June 30, 2018 include approximately $194,000 of business interruption insurance recovery proceeds. Our financial results for the six months ended June 30, 2018 include approximately $1.2 million of business interruption insurance recovery proceeds, covering the period of late August, 2017 through June 30, 2018, approximately $500,000 of which relates to 2017. These business interruption insurance recovery proceeds are included in net cash provided by operating activities in our condensed consolidated statement of cash flows for the six-month period ended June 30, 2018. Additionally, the six months ended June 30, 2018 includes approximately $4.5 million of hurricane insurance recoveries in excess of property damage write-downs, which are included in net cash provided by investing activities in our condensed consolidated statement of cash flows for the six-month period ended June 30, 2018. Our properties damaged and temporarily closed from Hurricane Harvey were: • Cypresswood Professional Center – located in Spring, Texas and consisting of two MOBs. • Professional Buildings at King’s Crossing – located in Kingwood, Texas and consisting of two MOBs. • Kelsey-Seybold Clinic at King’s Crossing – located in Kingwood, Texas and consisting of one MOB. |
Recent Accounting Pronounceme16
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | On January 1, 2018, we adopted ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments Restricted Cash, (In thousands) June 30, 2018 June 30, 2017 Cash and cash equivalents $ 5,732 $ 4,109 Restricted cash - 11,253 Total Cash, Cash Equivalents and Restricted Cash $ 5,732 $ 15,362 In February 2016, the FASB issued ASU 2016-02, Leases On January 1, 2018, we adopted ASU 2014-09, Revenue From Contracts With Customers Our revenues consist primarily of rentals received from tenants, which are comprised of minimum rent (base rentals) and bonus rentals and reimbursements from tenants for their pro-rata share of expenses such as common area maintenance costs, real estate taxes and utilities. We apply FASB ASC Topic 606, “Revenue from Contracts with Customers” with respect to tenant reimbursement and other property income, which totaled $2.8 million and $2.5 million for the three months ended June 30, 2018 and 2017, respectively, and $5.5 million and $4.9 million for the six months ended June 30, 2018 and 2017, respectively. The 2018 three and six month tenant reimbursement and other property income amounts also include a $1.7 million early lease termination fee recorded during the three months ended June 30, 2018. Tenant reimbursements for operating expenses are accrued as revenue and generally due monthly from tenants. Since payments with respect to tenant reimbursement income are generally due monthly, no contract assets or liabilities have been recognized. Revenue consisting of rental income from leasing arrangements are specifically excluded from FASB ASC Topic 606. |
Relationship with Universal H17
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2026 5 (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 one 5-year renewal option at the existing lease rate (through 2031). (b) UHS has two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Summarized Financial Informat18
Summarized Financial Information of Equity Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018: Name of LLC/LP Ownership Property Owned by LLC/LP 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 $8.4 million outstanding as of June 30, 2018. (b.) This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LP has a third-party term loan, which is non-recourse to us, of $14.1 million outstanding as of June 30, 2018. (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 June 30, 2018. This LP has a third-party term loan, which is non-recourse to us, of $5.1 million outstanding as of June 30, 2018. |
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/LPs accounted for under the equity method during the three and six months ended June 30, 2018 and 2017. The six months ended June 30, 2017 include the financial results of Arlington Medical Properties, LLC, through the March 13, 2017 divestiture date. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (amounts in thousands) (amounts in thousands) Revenues $ 2,451 $ 2,410 $ 4,913 $ 5,993 Operating expenses 977 939 1,935 2,189 Depreciation and amortization 438 421 895 1,064 Interest, net 328 337 656 899 Net income $ 708 $ 713 $ 1,427 $ 1,841 Our share of net income (a.) $ 425 $ 498 $ 854 $ 1,575 (a.) Our share of net income for the six months ended June 30, 2017 includes approximately $284,000 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, therefore there was no interest income earned by us on this advance subsequent to 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 June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (amounts in thousands) Net property, including construction in progress $ 32,345 $ 33,111 Other assets 3,659 3,560 Total assets $ 36,004 $ 36,671 Other liabilities $ 2,654 $ 3,067 Mortgage notes payable, non-recourse to us 27,548 27,839 Equity 5,802 5,765 Total liabilities and equity $ 36,004 $ 36,671 Investments in LLCs before amounts included in accrued expenses and other liabilities $ 4,655 $ 4,671 Amounts included in accrued expenses and other liabilities (2,011 ) (1,895 ) Our share of equity in LLCs, net $ 2,644 $ 2,776 |
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's Accounted Under Equity Method | As of June 30, 2018, and December 31, 2017, 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 6/30/2018 12/31/2017 Maturity Date FTX MOB Phase II (5.00% fixed rate mortgage loan) $ 5,134 $ 5,202 October, 2020 Grayson Properties (5.034% fixed rate mortgage loan) 14,060 14,191 September, 2021 Brunswick Associates (3.64% fixed rate mortgage loan) 8,354 8,446 December, 2024 $ 27,548 $ 27,839 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. |
Recent Accounting Pronounceme19
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash in our Consolidated Balance Sheets to the total amount shown in our Consolidated Statements of Cash Flows: (In thousands) June 30, 2018 June 30, 2017 Cash and cash equivalents $ 5,732 $ 4,109 Restricted cash - 11,253 Total Cash, Cash Equivalents and Restricted Cash $ 5,732 $ 15,362 |
Debt and Financial Instruments
Debt and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 Tangible net worth > =$125,000 $ 188,737 Total leverage < 60% 39.9 % Secured leverage < 30% 8.1 % Unencumbered leverage < 60% 36.2 % Fixed charge coverage > 1.50x 4.1x |
Outstanding Mortgages, Excluding Net Debt Premium | Facility Name Outstanding Balance (in Interest Rate Maturity Date Vibra Hospital-Corpus Christi fixed rate mortgage loan $ 2,573 6.50 % July, 2019 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan 5,961 4.54 % June, 2022 BRB Medical Office Building fixed rate mortgage loan 6,028 4.27 % December, 2022 Desert Valley Medical Center fixed rate mortgage loan 4,877 3.62 % January, 2023 2704 North Tenaya Way fixed rate mortgage loan 6,940 4.95 % November, 2023 Summerlin Hospital Medical Office Building III fixed rate mortgage loan 13,198 4.03 % April, 2024 Tuscan Professional Building fixed rate mortgage loan 4,273 5.56 % June, 2025 Phoenix Children’s East Valley Care Center fixed rate mortgage loan 9,307 3.95 % January, 2030 Total, excluding net debt premium and net financing fees 53,157 Less net financing fees (625 ) Plus net debt premium 274 Total mortgages notes payable, non-recourse to us, net $ 52,806 (a) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. |
General - Additional Informatio
General - Additional Information (Detail) | Jun. 30, 2018Property |
4 Unconsolidated Limited Liability Companies / Limited Partner | Minimum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Non-controlling equity interest, ownership percentage | 33.00% |
4 Unconsolidated Limited Liability Companies / Limited Partner | 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 H22
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)PropertyTime | Apr. 30, 2017Time | Jun. 30, 2018USD ($)PropertyTime | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)PropertyTime | Jun. 30, 2017USD ($) | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||||
Annual advisory fee as percentage of average invested real estate assets | 0.70% | 0.70% | 0.70% | ||||
Management Service | |||||||
Related Party Transaction [Line Items] | |||||||
Advisory fee | $ 948,000 | $ 874,000 | $ 1,852,000 | $ 1,740,000 | |||
Universal Health Services, Inc | |||||||
Related Party Transaction [Line Items] | |||||||
Number of term renewal options | Time | 6 | 6 | 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 | ||||||
Percentage ownership of outstanding shares | 5.70% | 5.70% | 5.70% | 5.70% | |||
Universal Health Services, Inc | Henderson Medical Plaza | |||||||
Related Party Transaction [Line Items] | |||||||
Number of term renewal options | Time | 2 | ||||||
Additional renewal terms | 10 years | ||||||
Ground lease agreement period | 75 years | ||||||
Amount invested in MOB under construction | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 | ||||
Universal Health Services, Inc | McAllen Medical Center | |||||||
Related Party Transaction [Line Items] | |||||||
Renewal options term at existing lease rates | 5 years | 5 years | |||||
Extended lease terms at existing lease rates | 2026-12 | 2026-12 | |||||
Number of renewal options at existing lease rates | Time | 1 | ||||||
Universal Health Services, Inc | Customer Concentration Risk | Revenues | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of revenues generated from leases and tenants | 20.00% | 22.00% | 21.00% | 23.00% | |||
Universal Health Services, Inc | Customer Concentration Risk | Revenues | Tenants | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of revenues generated from leases and tenants | 28.00% | 32.00% | 30.00% | 32.00% | |||
Universal Health Services, Inc | Hospital Facilities Leased | |||||||
Related Party Transaction [Line Items] | |||||||
Number of hospital facilities leased | Property | 3 | 3 | 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% | 20.00% | 20.00% | ||||
Incentive fees | $ 0 | $ 0 | |||||
Average invested real estate assets | $ 542,000,000 | $ 499,000,000 | 529,000,000 | 497,000,000 | |||
Universal Health Services of Delaware Inc | Management Service | |||||||
Related Party Transaction [Line Items] | |||||||
Advisory fee | $ 948,000 | $ 874,000 | $ 1,900,000 | $ 1,700,000 | |||
Universal Health Services of Delaware Inc | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of equity to be exceeded for incentive distribution | 15.00% | 15.00% | 15.00% |
Existing Lease Terms and Renewa
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Detail) - Universal Health Services, Inc | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |||
McAllen Medical Center | ||||
Operating Leased Assets [Line Items] | ||||
Annual Minimum Rent | $ 5,485,000 | $ 5,485,000 | ||
End of Lease Term | 2026-12 | 2026-12 | ||
Renewal Term (years) | 5 years | [1] | 5 years | [1] |
Wellington Regional Medical Center | ||||
Operating Leased Assets [Line Items] | ||||
Annual Minimum Rent | $ 3,030,000 | $ 3,030,000 | ||
End of Lease Term | 2021-12 | |||
Renewal Term (years) | 10 years | [2] | 10 years | [2] |
Southwest Healthcare System, Inland Valley Campus | ||||
Operating Leased Assets [Line Items] | ||||
Annual Minimum Rent | $ 2,648,000 | $ 2,648,000 | ||
End of Lease Term | 2021-12 | |||
Renewal Term (years) | 10 years | [2] | 10 years | [2] |
[1] | UHS has one 5-year renewal option at the existing lease rate (through 2031). | |||
[2] | UHS has two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Existing Lease Terms and Rene24
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Parenthetical) (Detail) - Universal Health Services, Inc | 1 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018TimeRenewalOption | |
McAllen Medical Center | ||
Operating Leased Assets [Line Items] | ||
Number of renewal options at existing lease rates | Time | 1 | |
Renewal options term at existing lease rates | 5 years | 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 | Maximum | ||
Operating Leased Assets [Line Items] | ||
Renewal options at fair market value lease rates expiration year | 2,031 | |
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 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 03, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Dividends and Equity Issuance [Line Items] | |||||
Dividends declared | $ 9,200 | $ 18,300 | |||
Declared dividends, per share | $ 0.67 | $ 1.335 | |||
Dividends declared and paid | $ 9,000 | $ 9,187 | $ 17,887 | ||
Declared and paid dividends, per share | $ 0.66 | $ 1.315 | |||
Dividends payable, date to be paid | Jul. 3, 2018 | Jul. 3, 2018 | |||
Subsequent Event | |||||
Dividends and Equity Issuance [Line Items] | |||||
Dividends declared and paid | $ 9,200 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)Time | Jun. 30, 2017USD ($)Acquisition | Sep. 30, 2017USD ($) | Mar. 12, 2017 | |
Business Acquisitions And Dispositions [Line Items] | ||||||
Cash received from dispositions | $ 0 | $ 53,967,000 | ||||
Number of acquisitions | Acquisition | 0 | |||||
Repayment of loan | $ 21,400,000 | |||||
St. Mary's Professional Office Building | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Net cash proceeds received from divestiture | $ 57,300,000 | $ 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] | ||||||
Total purchase price | $ 7,900,000 | |||||
Ownership prior to minority interest purchase | 85.00% | 85.00% | ||||
Remaining percentage owned by third party member | 15.00% | |||||
Beaumont Medical Sleep Center Building | ||||||
Business Acquisitions And Dispositions [Line Items] | ||||||
Total purchase price | $ 4,000,000 | |||||
Percentage of building area leased | 100.00% | |||||
Initial lease terms | 9 years 6 months | |||||
Number of term renewal options | Time | 2 | |||||
Additional renewal terms | 5 years |
Summarized Financial Informat27
Summarized Financial Information of Equity Affiliates - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018Property | |
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% |
Limited Liability Companies Acc
Limited Liability Companies Accounted for Under Equity Method (Detail) - Equity Method Investments | 6 Months Ended | |
Jun. 30, 2018 | ||
Suburban Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 33.00% | |
Property Owned by LLC/LP | St. Matthews Medical Plaza II | |
Brunswick Associates | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 74.00% | [1] |
Property Owned by LLC/LP | Mid Coast Hospital MOB | [1] |
Grayson Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [2] |
Property Owned by LLC/LP | 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/LP | Forney Medical Plaza II | [3] |
[1] | This LLC has a third-party term loan, which is non-recourse to us, of $8.4 million outstanding as of June 30, 2018. | |
[2] | This building is on the campus of a UHS hospital and has tenants that include subsidiaries of UHS. This LP has a third-party term loan, which is non-recourse to us, of $14.1 million outstanding as of June 30, 2018. | |
[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 June 30, 2018. This LP has a third-party term loan, which is non-recourse to us, of $5.1 million outstanding as of June 30, 2018. |
Limited Liability Companies A29
Limited Liability Companies Accounted for Under Equity Method (Parenthetical) (Detail) $ in Millions | Jun. 30, 2018USD ($) |
Brunswick Associates | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | $ 8.4 |
Grayson Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 14.1 |
FTX MOB Phase II limited partnership | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 5.1 |
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 | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Equity Method Investments And Joint Ventures [Abstract] | |||||
Revenues | $ 2,451 | $ 2,410 | $ 4,913 | $ 5,993 | |
Operating expenses | 977 | 939 | 1,935 | 2,189 | |
Depreciation and amortization | 438 | 421 | 895 | 1,064 | |
Interest, net | 328 | 337 | 656 | 899 | |
Net income | 708 | 713 | 1,427 | 1,841 | |
Our share of net income | [1] | $ 425 | $ 498 | $ 854 | $ 1,575 |
[1] | Our share of net income for the six months ended June 30, 2017 includes approximately $284,000 of interest income earned by us on an advance made to Arlington Medical Properties, LLC. This advance was repaid to us effective with the previously mentioned Arlington Medical Properties, LLC transaction during March, 2017, therefore there was no interest income earned by us on this advance subsequent to March, 2017. |
Condensed Combined Statement 31
Condensed Combined Statement of Income for Limited Liabilities Accounted for under Equity Method (Parenthetical) (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Arlington Medical Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Interest income earned on various advances made to LLCs | $ 0 | $ 284,000 |
Condensed Combined Balance Shee
Condensed Combined Balance Sheets of Limited Liabilities Accounted for under Equity Method (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Equity Method Investments And Joint Ventures [Abstract] | ||
Net property, including construction in progress | $ 32,345 | $ 33,111 |
Other assets | 3,659 | 3,560 |
Total assets | 36,004 | 36,671 |
Other liabilities | 2,654 | 3,067 |
Mortgage notes payable, non-recourse to us | 27,548 | 27,839 |
Equity | 5,802 | 5,765 |
Total liabilities and equity | 36,004 | 36,671 |
Investments in LLCs before amounts included in accrued expenses and other liabilities | 4,655 | 4,671 |
Amounts included in accrued expenses and other liabilities | (2,011) | (1,895) |
Our share of equity in LLCs, net | $ 2,644 | $ 2,776 |
Aggregate Principal Amounts Due
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | $ 27,548 | $ 27,839 | |
Equity Method Investments | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | 27,548 | 27,839 |
Equity Method Investments | FTX MOB Phase II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 5,134 | 5,202 |
Maturity Date | 2020-10 | ||
Equity Method Investments | Grayson Properties | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 14,060 | 14,191 |
Maturity Date | 2021-09 | ||
Equity Method Investments | Brunswick Associates | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 8,354 | $ 8,446 |
Maturity Date | 2024-12 | ||
[1] | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity |
Aggregate Principal Amounts D34
Aggregate Principal Amounts Due on Mortgage Notes Payable by Unconsolidated LLCs, Accounted Under Equity Method (Parenthetical) (Detail) | Jun. 30, 2018 |
5.00% Fixed Rate Mortgage Loan | FTX MOB Phase II | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 5.00% |
5.034% Fixed Rate Mortgage Loan | Grayson Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 5.034% |
3.64% Fixed Rate Mortgage Loan | Brunswick Associates | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 3.64% |
Schedule of Reconciliation of C
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |||
Cash and cash equivalents | $ 5,732 | $ 3,387 | $ 4,109 |
Restricted cash | 11,253 | ||
Total Cash, Cash Equivalents and Restricted Cash | $ 5,732 | $ 15,362 |
Recent Accounting Pronounceme36
Recent Accounting Pronouncements - Additional Information (Detail) - Topic 606 - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative adjustment | $ 0 | $ 0 | ||
Contract assets | 0 | 0 | ||
Contract liabilities | 0 | 0 | ||
Lease termination fee | 1,700,000 | |||
Tenant Reimbursement and Other Property Income | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Revenue from contracts with customers | $ 2,800,000 | $ 2,500,000 | $ 5,500,000 | $ 4,900,000 |
Debt and Financial Instrument37
Debt and Financial Instruments - Additional Information (Detail) | May 02, 2018USD ($) | Apr. 05, 2018USD ($) | Mar. 27, 2018USD ($)Option | Feb. 13, 2018USD ($) | Sep. 30, 2016USD ($)Derivative | Jun. 30, 2016USD ($)Derivative | Jun. 30, 2018USD ($)MortgageLoan | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)MortgageLoan | Jun. 30, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($)MortgageLoan | |||
Debt Instrument [Line Items] | ||||||||||||||
Outstanding borrowings under revolving credit agreement | $ 197,250,000 | $ 197,250,000 | $ 197,250,000 | $ 181,050,000 | ||||||||||
Available borrowing capacity | 102,700,000 | $ 102,700,000 | $ 102,700,000 | |||||||||||
Repayments of mortgage loan | $ 22,585,000 | $ 36,473,000 | ||||||||||||
Number of non-recourse mortgages repaid | MortgageLoan | 3 | 3 | 3 | |||||||||||
Number of non-recourse mortgages | MortgageLoan | 8 | 8 | 8 | 11 | ||||||||||
Mortgage loan fair value | $ 53,000,000 | $ 53,000,000 | $ 53,000,000 | $ 76,300,000 | ||||||||||
Balance of Non Recourse Mortgages | 53,157,000 | [1] | 53,157,000 | [1] | 53,157,000 | [1] | $ 75,700,000 | |||||||
Interest Rate Cap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of interest rate cap agreements | Derivative | 1 | 1 | ||||||||||||
Notional amount | $ 30,000,000 | $ 30,000,000 | ||||||||||||
Premium paid | $ 55,000 | $ 115,000 | ||||||||||||
Expiration date of interest rate cap | Mar. 31, 2019 | Mar. 31, 2019 | ||||||||||||
Derivative interest rate cap, payment received or accrued from counterparties | 39,000 | 39,000 | ||||||||||||
Three Mortgages Utilizing Borrowings under Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of mortgage loan | 21,700,000 | |||||||||||||
Sparks Medical Building/Vista Medical Terrace Floating Rate Mortgage Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of mortgage loan | $ 4,100,000 | |||||||||||||
Centennial Hills Medical Office Building floating rate mortgage loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of mortgage loan | $ 9,700,000 | |||||||||||||
Rosenberg Children's Medical Plaza Fixed Rate Mortgage Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of mortgage loan | $ 7,900,000 | |||||||||||||
LIBOR | Interest Rate Cap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative instruments, LIBOR rate | 1.50% | 1.50% | ||||||||||||
Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Outstanding borrowing | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||||||||||
Increase in borrowing capacity | $ 50,000,000 | |||||||||||||
Unsecured revolving amended credit agreement terminated date | 2022-03 | |||||||||||||
Number of additional six month extension options | Option | 2 | |||||||||||||
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 1.10% to 1.35% or at the Base Rate plus an applicable margin ranging from 0.10% to 0.35%. | |||||||||||||
Base rate description | the greater 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%. | |||||||||||||
Facility fee payable on commitment | 0.20% | |||||||||||||
Credit Agreement | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin points added to the reference rate | 1.15% | |||||||||||||
Credit Agreement | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin points added to the reference rate | 0.15% | |||||||||||||
Credit Agreement | Swingline/Short-Term Loans | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Outstanding borrowing | 30,000,000 | |||||||||||||
Credit Agreement | Letters of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Outstanding borrowing | $ 40,000,000 | |||||||||||||
Credit Agreement | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Facility fee payable on commitment | 0.15% | |||||||||||||
Credit Agreement | Minimum | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin points added to the reference rate | 1.10% | |||||||||||||
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 | 0.10% | |||||||||||||
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] | ||||||||||||||
Facility fee payable on commitment | 0.35% | |||||||||||||
Credit Agreement | Maximum | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin points added to the reference rate | 1.35% | |||||||||||||
Credit Agreement | Maximum | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin points added to the reference rate | 0.35% | |||||||||||||
[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 | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Covenant, Tangible net worth | $ 125,000 |
Tangible net worth | $ 188,737 |
Total leverage | 39.90% |
Secured leverage | 8.10% |
Unencumbered leverage | 36.20% |
Fixed charge coverage | 4.10% |
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 ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | |||
Debt Instrument [Line Items] | ||||
Outstanding Balance | $ 53,157 | [1] | $ 75,700 | |
Less net financing fees | [1] | (625) | ||
Plus net debt premium | [1] | 274 | ||
Total mortgages notes payable, non-recourse to us, net | 52,806 | [1] | $ 75,359 | |
Vibra Hospital-Corpus Christi fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 2,573 | ||
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] | $ 5,961 | ||
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] | $ 6,028 | ||
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] | $ 4,877 | ||
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] | $ 6,940 | ||
Debt Instrument Interest Rate Stated Percentage | 4.95% | |||
Maturity Date | 2023-11 | |||
Summerlin Hospital Medical Office Building III fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 13,198 | ||
Debt Instrument Interest Rate Stated Percentage | 4.03% | |||
Maturity Date | 2024-04 | |||
Tuscan Professional Building fixed rate mortgage loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 4,273 | ||
Debt Instrument Interest Rate Stated Percentage | 5.56% | |||
Maturity Date | 2025-06 | |||
Phoenix Children's East Valley Care Center Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 9,307 | ||
Debt Instrument Interest Rate Stated Percentage | 3.95% | |||
Maturity Date | 2030-01 | |||
[1] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Impact of Hurricane Harvey - Ad
Impact of Hurricane Harvey - Additional Information (Detail) | 3 Months Ended | 4 Months Ended | 6 Months Ended | 10 Months Ended | |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Aug. 31, 2017Building | |
Unusual Or Infrequent Item [Line Items] | |||||
Hurricane related insurance recoveries | $ 194,000 | $ 1,162,000 | |||
Hurricane insurance recoveries in excess of property damage write-downs | 4,535,000 | ||||
Hurricane Harvey, Extensive Water Damage | Houston, Texas | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Number of medical office buildings | Building | 5 | ||||
Hurricane Harvey | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Additional insurance recovery proceeds | 5,500,000 | ||||
Hurricane related insurance recoveries | 12,500,000 | ||||
Hurricane Harvey | Business Interruption | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Hurricane related insurance recoveries | $ 194,000 | $ 1,200,000 | |||
Hurricane insurance recoveries in excess of property damage write-downs | $ 4,500,000 | ||||
Hurricane Harvey | 2017 business interruption | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Hurricane related insurance recoveries | $ 500,000 | ||||
Properties Damaged and Temporarily Closed from Hurricane Harvey | Spring, Texas | Cypresswood Professional Center | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Number of medical office buildings | Building | 2 | ||||
Properties Damaged and Temporarily Closed from Hurricane Harvey | Kingwood, Texas | Professional Buildings at Kings Crossing | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Number of medical office buildings | Building | 2 | ||||
Properties Damaged and Temporarily Closed from Hurricane Harvey | Kingwood, Texas | Kelsey-Seybold Clinic at Kings Crossing | |||||
Unusual Or Infrequent Item [Line Items] | |||||
Number of medical office buildings | Building | 1 |