Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | UNIVERSAL HEALTH REALTY INCOME TRUST | |
Entity Central Index Key | 0000798783 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,770,519 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-9321 | |
Entity Tax Identification Number | 23-6858580 | |
Entity Address, Address Line One | UNIVERSAL CORPORATE CENTER | |
Entity Address, Address Line Two | 367 SOUTH GULPH ROAD | |
Entity Address, City or Town | KING OF PRUSSIA | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19406 | |
City Area Code | 610 | |
Local Phone Number | 265-0688 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Shares of beneficial interest, $0.01 par value | |
Trading Symbol | UHT | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues: | |||||
Revenues, Total | $ 19,692 | $ 19,866 | $ 58,180 | $ 58,304 | |
Expenses: | |||||
Depreciation and amortization | 6,399 | 6,430 | 19,160 | 19,564 | |
Other operating expenses | 5,614 | 5,566 | 16,573 | 16,106 | |
Costs and Expenses, Total | 13,052 | 13,007 | 38,815 | 38,633 | |
Income before equity in income of unconsolidated limited liability companies ("LLCs"), interest expense and gain on sale | 6,640 | 6,859 | 19,365 | 19,671 | |
Equity in income of unconsolidated LLCs | 517 | 453 | 1,371 | 1,337 | |
Gain on sale of land | 250 | ||||
Interest expense, net | (1,964) | (2,659) | (6,289) | (8,132) | |
Net income | $ 5,193 | $ 4,653 | $ 14,447 | $ 13,126 | |
Basic earnings per share | $ 0.38 | $ 0.34 | $ 1.05 | $ 0.96 | |
Diluted earnings per share | $ 0.38 | $ 0.34 | $ 1.05 | $ 0.95 | |
Weighted average number of shares outstanding - Basic | 13,748 | 13,735 | 13,741 | 13,731 | |
Weighted average number of shares outstanding - Diluted | 13,770 | 13,757 | 13,763 | 13,751 | |
Non-Related Parties | |||||
Revenues: | |||||
Lease revenue | $ 12,841 | $ 13,555 | $ 38,526 | $ 39,464 | |
Other | |||||
Revenues: | |||||
Other revenue | 238 | 260 | 744 | 923 | |
Management Service | |||||
Expenses: | |||||
Advisory fees to UHS | 1,039 | 1,011 | 3,082 | 2,963 | |
UHS Facilities | |||||
Revenues: | |||||
Lease revenue | [1] | 6,381 | 5,821 | 18,243 | 17,265 |
UHS Facilities | Other | |||||
Revenues: | |||||
Other revenue | $ 232 | $ 230 | $ 667 | $ 652 | |
[1] | Includes bonus rental on UHS hospital facilities of $1,680 and $1,428 for the three-month periods ended September 30, 2020 and 2019, respectively, and $4,477 and $4,174 for the nine-month periods ended September 30, 2020 and 2019, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
UHS Hospital Facilities | ||||
Bonus rental | $ 1,680 | $ 1,428 | $ 4,477 | $ 4,174 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 5,193 | $ 4,653 | $ 14,447 | $ 13,126 |
Other comprehensive gain/(loss): | ||||
Unrealized derivative gains/(losses) on cash flow hedges | 234 | 561 | (5,709) | 429 |
Total other comprehensive gain/(loss): | 234 | 561 | (5,709) | 429 |
Total comprehensive income | $ 5,427 | $ 5,214 | $ 8,738 | $ 13,555 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Real Estate Investments: | |||
Buildings and improvements and construction in progress | $ 595,462 | $ 572,503 | |
Accumulated depreciation | (211,155) | (194,888) | |
Real Estate Investment Property, Net, Total | 384,307 | 377,615 | |
Land | 54,892 | 54,892 | |
Net Real Estate Investments | 439,199 | 432,507 | |
Investments in limited liability companies ("LLCs") | 4,366 | 6,918 | |
Other Assets: | |||
Cash and cash equivalents | 6,320 | 6,110 | |
Lease and other receivables from UHS | 3,270 | 2,963 | |
Lease receivable - other | 7,306 | 7,640 | |
Intangible assets (net of accumulated amortization of $19.2 million and $26.5 million, respectively) | 12,147 | 14,553 | |
Right-of-use land assets, net | 8,922 | 8,944 | |
Deferred charges and other assets, net | 9,091 | 9,154 | |
Total Assets | 490,621 | 488,789 | |
Liabilities: | |||
Line of credit borrowings | 227,100 | 212,950 | |
Mortgage notes payable, non-recourse to us, net | 59,387 | [1] | 60,744 |
Accrued interest | 533 | 374 | |
Accrued expenses and other liabilities | 21,316 | 12,888 | |
Ground lease liabilities, net | 8,922 | 8,944 | |
Tenant reserves, deposits and deferred and prepaid rents | 10,969 | 11,155 | |
Total Liabilities | 328,227 | 307,055 | |
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: 2020 - 13,770,510; 2019 - 13,757,498 | 138 | 138 | |
Capital in excess of par value | 267,071 | 266,723 | |
Cumulative net income | 675,727 | 661,280 | |
Cumulative dividends | (775,843) | (747,417) | |
Accumulated other comprehensive (loss)/income | (4,699) | 1,010 | |
Total Equity | 162,394 | 181,734 | |
Total Liabilities and Equity | $ 490,621 | $ 488,789 | |
[1] | All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Intangible assets, accumulated amortization | $ 19.2 | $ 26.5 |
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 | 13,770,510 | 13,757,498 |
Common shares, outstanding | 13,770,510 | 13,757,498 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Capital in excess of par value | Cumulative net income | Cumulative dividends | Accumulated other comprehensive income/(loss) |
Balance at Dec. 31, 2018 | $ 198,610 | $ 137 | $ 266,031 | $ 642,316 | $ (710,006) | $ 132 |
Balance, Shares at Dec. 31, 2018 | 13,747 | |||||
Shares of Beneficial Interest: | ||||||
Issued, net | (56) | $ 1 | (57) | |||
Issued (in shares) | 10 | |||||
Restricted stock-based compensation expense | 504 | 504 | ||||
Dividends | (27,988) | (27,988) | ||||
Comprehensive income: | ||||||
Net income | 13,126 | 13,126 | ||||
Unrealized (loss)/gain on cash flow hedges | 429 | 429 | ||||
Subtotal - comprehensive income | 13,555 | 13,126 | 429 | |||
Balance at Sep. 30, 2019 | 184,625 | $ 138 | 266,478 | 655,442 | (737,994) | 561 |
Balance, Shares at Sep. 30, 2019 | 13,757 | |||||
Balance at Jun. 30, 2019 | 188,540 | $ 138 | 266,252 | 650,789 | (728,639) | |
Balance, Shares at Jun. 30, 2019 | 13,757 | |||||
Shares of Beneficial Interest: | ||||||
Issued, net | 53 | 53 | ||||
Restricted stock-based compensation expense | 173 | 173 | ||||
Dividends | (9,355) | (9,355) | ||||
Comprehensive income: | ||||||
Net income | 4,653 | 4,653 | ||||
Unrealized (loss)/gain on cash flow hedges | 561 | 561 | ||||
Subtotal - comprehensive income | 5,214 | 4,653 | 561 | |||
Balance at Sep. 30, 2019 | 184,625 | $ 138 | 266,478 | 655,442 | (737,994) | 561 |
Balance, Shares at Sep. 30, 2019 | 13,757 | |||||
Balance at Dec. 31, 2019 | 181,734 | $ 138 | 266,723 | 661,280 | (747,417) | 1,010 |
Balance, Shares at Dec. 31, 2019 | 13,757 | |||||
Shares of Beneficial Interest: | ||||||
Issued, net | (317) | (317) | ||||
Issued (in shares) | 14 | |||||
Restricted stock-based compensation expense | 665 | 665 | ||||
Dividends | (28,426) | (28,426) | ||||
Comprehensive income: | ||||||
Net income | 14,447 | 14,447 | ||||
Unrealized (loss)/gain on cash flow hedges | (5,709) | (5,709) | ||||
Subtotal - comprehensive income | 8,738 | 14,447 | (5,709) | |||
Balance at Sep. 30, 2020 | 162,394 | $ 138 | 267,071 | 675,727 | (775,843) | (4,699) |
Balance, Shares at Sep. 30, 2020 | 13,771 | |||||
Balance at Jun. 30, 2020 | 166,240 | $ 138 | 266,843 | 670,534 | (766,342) | (4,933) |
Balance, Shares at Jun. 30, 2020 | 13,770 | |||||
Shares of Beneficial Interest: | ||||||
Issued, net | (20) | (20) | ||||
Issued (in shares) | 1 | |||||
Restricted stock-based compensation expense | 248 | 248 | ||||
Dividends | (9,501) | (9,501) | ||||
Comprehensive income: | ||||||
Net income | 5,193 | 5,193 | ||||
Unrealized (loss)/gain on cash flow hedges | 234 | 234 | ||||
Subtotal - comprehensive income | 5,427 | 5,193 | 234 | |||
Balance at Sep. 30, 2020 | $ 162,394 | $ 138 | $ 267,071 | $ 675,727 | $ (775,843) | $ (4,699) |
Balance, Shares at Sep. 30, 2020 | 13,771 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividend, per share | $ 0.69 | $ 0.68 | $ 2.065 | $ 2.035 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 14,447 | $ 13,126 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,160 | 19,564 |
Amortization related to below market leases, net | (140) | (152) |
Amortization of debt premium | (39) | (40) |
Amortization of deferred financing costs | 549 | 481 |
Stock-based compensation expense | 665 | 504 |
Gain on sale of land | (250) | |
Changes in assets and liabilities: | ||
Lease receivable | 27 | 117 |
Accrued expenses and other liabilities | 49 | 96 |
Tenant reserves, deposits and deferred and prepaid rents | (186) | (676) |
Accrued interest | 159 | (80) |
Leasing costs paid | (745) | (824) |
Other, net | (1,171) | (135) |
Net cash provided by operating activities | 32,775 | 31,731 |
Cash flows from investing activities: | ||
Investments in LLCs | (3,204) | (798) |
Cash distributions from LLCs | 5,196 | 343 |
Additions to real estate investments, net | (18,784) | (7,459) |
Deposit on real estate assets | (200) | |
Cash proceeds received from divestiture of property, net | 245 | |
Net cash used in investing activities | (16,792) | (7,869) |
Cash flows from financing activities: | ||
Net borrowings on line of credit | 14,150 | 9,250 |
Repayments of mortgage notes payable | (1,406) | (3,775) |
Financing costs paid | (372) | (35) |
Dividends paid | (28,411) | (27,988) |
Issuance of shares of beneficial interest, net | 266 | 165 |
Net cash used in financing activities | (15,773) | (22,383) |
Increase in cash and cash equivalents | 210 | 1,479 |
Cash and cash equivalents, beginning of period | 6,110 | 5,036 |
Cash and cash equivalents, end of period | 6,320 | 6,515 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 5,620 | 7,771 |
Invoices accrued for construction and improvements | $ 5,660 | $ 1,520 |
General
General | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | (1) General This Quarterly Report on Form 10-Q is for the quarter ended September 30, 2020. 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 September 30, 2020, we had investments in five jointly-owned LLCs/LPs (including one under construction which is scheduled to be completed in late 2020). We currently account for our share of the income/loss from these investments by the equity method (see Note 5). These LLCs are included in our consolidated 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 condensed consolidated 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 in the United States of America (U.S. GAAP) 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 condensed consolidated financial statements be read in conjunction with the consolidated financial statements, the notes thereto and accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2019. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and the federal government declared COVID-19 a national emergency. As a result of various policies implemented by the federal and state governments, and varying by individual state, many non-essential businesses in the nation were closed for varying time periods. We believe that by June 30, 2020, substantially all of our tenants had resumed operations of their businesses. Although COVID-19 has not had a material adverse impact on our results of operations through September 30, 2020, we believe that the potentially adverse impact that the pandemic may have on the future operations and financial results of our tenants, and in turn ours, will depend upon many factors, most of which are beyond our, or our tenants’, ability to control or predict. Such factors include, but are not limited to, the length of time and severity of the spread of the pandemic; the volume of cancelled or rescheduled elective procedures and the volume of COVID-19 patients treated by the operators of our hospitals and other healthcare facilities; measures our tenants are taking to respond to the COVID-19 pandemic; the impact of government and administrative regulation, including travel bans and restrictions, shelter-in-place or stay-at-home orders, quarantines, the promotion of social distancing, business shutdowns and limitations on business activity; changes in patient volumes at our tenants’ hospitals and other healthcare facilities due to patients’ general concerns related to the risk of contracting COVID-19 from interacting with the healthcare system; the impact of stimulus on the health care industry and our tenants; changes in patient volumes and payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential disruptions to clinical staffing and shortages and disruptions related to supplies required for our tenants’ employees and patients, including equipment, pharmaceuticals and medical supplies, particularly personal protective equipment, or PPE; potential increases to expenses incurred by our tenants related to staffing, supply chain or other expenditures; the impact of our indebtedness and the ability to refinance such indebtedness on acceptable terms; disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact our ability to access capital or increase associated borrowing costs; and changes in general economic conditions nationally and regionally in the markets our properties are located resulting from the COVID-19 pandemic, including increased unemployment and underemployment levels and reduced consumer spending and confidence. Since the underlying businesses in each of our properties are operated by the tenants, we can provide no assurance that the businesses will continue to operate in the future, or stay current with their lease obligations. Bonus rents earned by us on the three acute care hospitals leased to wholly-owned subsidiaries of Universal Health Services, Inc., are computed based upon a computation that compares each hospital’s current quarter revenue to the corresponding quarter in the base year, we could therefore experience significant declines in future bonus rental revenue earned on these properties should those hospitals experience significant declines in patient volumes and revenues. These hospitals believe that, to the extent that they experience revenue declines and increased expenses resulting from the COVID-19 pandemic, as ultimately measured over the life of the pandemic, they are eligible for emergency fund grants as provided for by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Certain factors may result in the inability or unwillingness on the part of some of our tenants to make timely payment of their rent to us at current levels or to seek to amend or terminate their leases which, in turn, would have an adverse effect on our occupancy levels and our revenue and cash flow and the value of our properties, and potentially, our ability to maintain our dividend at current levels. Due to COVID-19 restrictions and its impact on the economy, we may experience a decrease in prospective tenants which could unfavorably impact the volume of new leases, as well as the renewal rate of existing leases. The COVID-19 pandemic could also impact our indebtedness and the ability to refinance such indebtedness on acceptable terms, as well as risks associated with disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact us from a financing perspective; and changes in general economic conditions nationally and regionally in the markets our properties are located resulting from the COVID-19 pandemic. Decreases in cash flows and results of operations may have an impact on the inputs and assumptions used in significant accounting estimates, including potential impairments of intangible and long-lived assets. 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. |
Relationship with Universal Hea
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
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 from certain subsidiaries of 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 renewal 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 21% of our consolidated revenues for the three months ended September 30, 2020 and 2019, respectively, and approximately 22% of our consolidated revenues for each of the nine months ended September 30, 2020 and 2019. In addition, we have seventeen medical office buildings (“MOBs”), or free-standing emergency departments (“FEDs”), that are either wholly or jointly-owned by us (excluding new construction), that include tenants which are subsidiaries of UHS. The aggregate revenues generated from UHS-related tenants comprised approximately 34% and 30% of our consolidated revenues during the three-month periods ended September 30, 2020 and 2019, respectively, and approximately 33% and 31% of our consolidated revenues during the nine-month periods ended September 30, 2020 and 2019, 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, among other things, 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 in 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. The table below details the existing lease terms and renewal options for our three 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 (b . ) UHS has two A wholly-owned subsidiary of UHS has notified us that they are considering termination of the existing lease on Southwest Healthcare System, Inland Valley Campus, prior to the scheduled expiration of the current term on December 31, 2021. As permitted pursuant to the terms of the lease, UHS has the right, subject to certain conditions, to propose substitution property with a fair market value substantially equal to that of the existing leased property. UHS is currently evaluating potential substitution properties and is expected to submit their proposal to us by December 31, 2020. Upon receipt, the proposal will be reviewed and evaluated by management of the Trust as well as by our Board of Trustees. All transactions with UHS must be approved by a majority of our Independent Trustees. We can provide no assurance that we will ultimately agree on a property substitution with UHS in connection with the Inland Valley Campus property, in which case, UHS has the right to purchase the property for its fair market value. Pursuant to the terms of the lease on the Inland Valley Campus, we earned $ 3.3 million of lease revenue during the nine-month period ended September 30, 2020 ($ 2.0 million in base rental and $ 1.3 million in bonus rental) and $ 4.3 million during the year ended December 31, 2019 ($ 2.6 million in base rental and $ 1.7 million in bonus rental). 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 lease revenue currently earned pursuant to these leases. We are the lessee on eleven ground leases with subsidiaries of UHS (for consolidated and unconsolidated investments). The remaining lease terms on the ground leases with subsidiaries of UHS range from approximately 29 years to approximately 79 years. The annual aggregate lease payments on these properties are approximately $482,000 for the year ended 2020 and $482,000 for each of the years ended 2021, 2022, 2023 and 2024, and an aggregate of $27.5 million thereafter. See Note 7 for further disclosure around our lease accounting. In late July, 2019 and September, 2019 we entered into two separate agreements with entities that are each related to wholly-owned subsidiaries of UHS in connection with newly constructed properties located in Clive, Iowa and Denison, Texas. Please see additional disclosure in Note 4, “ New Construction, Acquisitions and Dispositions”. Officers and Employees: Our officers are all employees of a wholly-owned subsidiary of UHS and although as of September 30, 2020 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. Advisory Agreement: UHS of Delaware, Inc. (the “Advisor”), a wholly-owned subsidiary of UHS, serves as Advisor to us under an advisory agreement dated December 24, 1986, and as amended and restated as of January 1, 2019 (the “Advisory Agreement”). 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 for the three and nine months ended September 30, 2020 and 2019, was computed at 0.70% of our average invested real estate assets, as derived from our condensed consolidated balance sheets. Based upon a review of our advisory fee and other general and administrative expenses, as compared to an industry peer group, the advisory fee computation remained unchanged for 2020, as compared to the last three years. The average real estate assets for advisory fee calculation purposes exclude certain items from our condensed consolidated balance sheet such as, among other things, accumulated depreciation, cash and cash equivalents, lease receivables, deferred charges and other assets. The advisory fee is payable quarterly, subject to adjustment at year-end based upon our audited financial statements. Advisory fees incurred and paid (or payable) to UHS amounted to approximately $1.0 million for each of the three months ended September 30, 2020 and 2019, and were based upon average invested real estate assets of $594 million and $578 million, respectively. Advisory fees incurred and paid (or payable) to UHS were approximately $3.1 million and $3.0 million for the nine months ended September 30, 2020 and 2019, respectively, and were based upon average invested real estate assets of $587 million and $564 million, respectively. Share Ownership: As of September 30, 2020 and December 31, 2019, 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 34% and 30% of our consolidated revenues during the three-month periods ended September 30, 2020 and 2019, respectively, and 33% and 31% of our consolidated revenues during the nine-month periods ended September 30, 2020 and 2019, 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 | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Dividends and Equity Issuance Program | (3) Dividends and Equity Issuance Program Dividends and dividend equivalents: During the third quarter of 2020, we declared dividend and dividend equivalents of approximately $9.5 million, or $.69 per share and we paid dividends of approximately $9.5 million, or $.69 per share, on September 30, 2020. We declared and paid dividends of approximately $9.4 million, or $.68 per share, during the third quarter of 2019. During the nine-month period ended September 30, 2020, we declared dividend and dividend equivalents of approximately $28.4 million, or $2.065 per share and we paid dividends of $28.4 million, or $2.065 per share. During the nine-month period ended September 30, 2019, we declared and paid dividends of $28.0 million, or $2.035 per share. Dividend equivalents which were accrued during the three and nine-month periods of 2020 will be paid out upon the vesting of the related restricted stock award. Equity Issuance Program: During the second quarter of 2020, we commenced an at-the-market (“ATM”) equity issuance program, pursuant to the terms of which we may sell, from time-to-time, common shares of our beneficial interest up to an aggregate sales price of $100 million to or through our agent banks. The common shares will be offered pursuant to the Registration Statement filed with the Securities and Exchange Commission, which became effective in June 2020. No shares were issued pursuant to this ATM equity program during the third quarter of 2020. During the second quarter of 2020, pursuant to this ATM equity program, we have issued 2,704 shares at an average price of $101.30 per share, which generated approximately $270,000 of net proceeds (net of approximately $4,000, consisting of compensation to BofA Securities, Inc.). Additionally, as of September 30, 2020, we have paid or incurred approximately $507,000 in various fees and expenses related to the commencement of our ATM program. |
New Construction, Acquisitions
New Construction, Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
New Construction, Acquisitions and Dispositions | (4) New Construction, Acquisitions and Dispositions Nine Months Ended September 30, 2020: New Construction: In September, 2019, we entered into an agreement whereby we will own a 95% non-controlling ownership interest in Grayson Properties II L.P., which will develop, construct, own and operate the Texoma Medical Plaza II, an MOB located in Denison, Texas. This MOB, which is scheduled to be completed in late 2020, will be located on the campus of Texoma Medical Center, a hospital that is owned and operated by a wholly-owned subsidiary of UHS. A 10-year master flex lease was executed with the wholly-owned subsidiary of UHS for 40,000 rentable square feet, representing over 50% of the rentable square feet of the MOB. The master flex lease commitment is subject to reduction upon the execution of third-party leases on up to 20,000 rentable square feet of the first and second floors of the three-story MOB, and 20,000 rentable square feet on the third floor. In April, 2020, a new, 122-month lease was fully executed with a third-party tenant for approximately 26,000 rentable square feet on the first floor of the MOB. As a result, the master flex lease commitment was reduced to 20,000 of rentable square feet on the third floor of the MOB. After giving effect to this new lease, 61% of the rentable square feet of the MOB is under lease agreements (including the remaining master lease space). Effective June 1, 2020, a $13.1 million third-party construction loan (non-recourse to us) was obtained by the LP, which is scheduled to mature on June 1, 2025 and has an outstanding loan balance of $10.4 million as of September 30, 2020. Additionally, we have committed to invest up to $4.8 million in equity or member loans in the development and construction of this MOB, none of which has been invested as of September 30, 2020. In July, 2019, Des Moines Medical Properties, LLC, a wholly-owned subsidiary of ours, entered into an agreement to build and lease a newly constructed behavioral health care hospital located in Clive, Iowa. The lease on this facility, which is triple net and has an initial term of 20-years with five 10-year renewal options, was executed with Clive Behavioral Health, LLC, a joint venture between UHS and Catholic Health Initiatives - Iowa, Corp. (d/b/a Mercy One Des Moines Medical Center). Construction of this hospital, for which we have engaged a wholly-owned subsidiary of UHS to act as project manager for an aggregate fee of approximately $750,000, is expected to be completed in late 2020 or early 2021. The hospital lease will commence upon issuance of the certificate of occupancy. The approximate cost of the project is estimated to be $37.5 million and the initial annual rent is estimated to be approximately $ 2.7 million. We have invested approximately $ 25.0 million for land and the development and construction costs of this hospital as of September 3 0 , 20 20 (including accrued costs at September 3 0 , 2020) . Acquisitions: There were no acquisitions during the first nine months of 2020. Dispositions: There were no dispositions during the first nine months of 2020. Nine Months Ended September 30, 2019: Acquisitions: There were no acquisitions during the first nine months of 2019. Dispositions: There were no dispositions during the first nine months of 2019. |
Summarized Financial Informatio
Summarized Financial Information of Equity Affiliates | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summarized Financial Information of Equity Affiliates | (5) Summarized Financial Information of Equity Affiliates In accordance with U.S. GAAP 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. Distributions received from equity method investees in the consolidated statements of cash flows are classified based upon the nature of the distribution. Returns on investments are presented net of equity in income from unconsolidated investments as cash flows from operating activities. Returns of investments are classified as cash flows from investing activities. At September 30, 2020, we have non-controlling equity investments or commitments in five jointly-owned LLCs/LPs which own MOBs (including one currently under construction which is scheduled to be completed in late 2020). As of September 30, 2020, we accounted for these LLCs/LPs on an unconsolidated basis pursuant to the equity method since they are not variable interest entities which we are the primary beneficiary nor do we 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 funding is typically advanced as equity or member loans. These entities maintain property insurance on the properties. The following property table represents the five LLCs/LPs in which we own a non-controlling interest (including one that is currently under construction) and were accounted for under the equity method as of September 30, 2020: Name of LLC/LP Ownership Property Owned by LLC/LP Suburban Properties 33 % St. Matthews Medical Plaza II Brunswick Associates (a.)(e.) 74 % Mid Coast Hospital MOB Grayson Properties (b.)(f.) 95 % Texoma Medical Plaza FTX MOB Phase II (c.) 95 % Forney Medical Plaza II Grayson Properties II (d.)(f.) 95 % Texoma Medical Plaza II (a.) This LLC has a third-party term loan of $7.9 million, which is non-recourse to us, outstanding as of September 30, 2020. (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 $13.4 million, outstanding as of September 30, 2020. (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 September 3 0 , 20 20 . This LP has a third-party term loan, which is non-recourse to us, of $ million , outstanding as of September 3 0 , 20 20 . This loan, originally scheduled to mature on October 1, 2020, was extended with a new maturity date of February 1, 2021. (d.) This MOB, currently under construction, will be located in Denison, Texas on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $4.8 million in equity and debt financing, none of which has been funded as of September 30, 2020. This LP entered into a $13.1 million third-party construction loan, which is non-recourse to us and has an outstanding balance of $10.4 million as of September 30, 2020. The LP will develop, construct, own and operate the Texoma Medical Plaza II which is expected to open in late 2020. (e.) The LLC is the lessee with a third party lessor under a ground lease for land. (f.) The LPs are the lessee, or have committed to a lease, with a UHS-related party for the land related to this property. Below are the condensed combined statements of income (unaudited) for the four LLCs/LPs (excluding one that owns an MOB that is currently under construction) accounted for under the equity method at September 30, 2020 and 2019. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (amounts in thousands) (amounts in thousands) Revenues $ 2,624 $ 2,441 $ 7,637 $ 7,432 Operating expenses 1,047 927 3,094 2,933 Depreciation and amortization 444 434 1,333 1,317 Interest, net 315 325 949 969 Net income $ 818 $ 755 $ 2,261 $ 2,213 Our share of net income $ 517 $ 453 $ 1,371 $ 1,337 Below are the condensed combined balance sheets (unaudited) for the five above-mentioned LLCs/LPs (including one LP that currently owns an MOB under construction) that were accounted for under the equity method as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (amounts in thousands) Net property, including construction in progress $ 40,979 $ 33,207 Other assets (a.) 8,275 7,452 Total assets $ 49,254 $ 40,659 Other liabilities (a.) $ 7,384 $ 6,785 Mortgage notes payable, non-recourse to us 36,525 26,650 Equity 5,345 7,224 Total liabilities and equity $ 49,254 $ 40,659 Investments in LLCs before amounts included in accrued expenses and other liabilities $ 4,366 $ 6,918 Amounts included in accrued expenses and other liabilities (1,544 ) (1,856 ) Our share of equity in LLCs, net $ 2,822 $ 5,062 (a.) Other assets and other liabilities as of both September 30, 2020 and December 31, 2019 includes approximately $3.7 million of right-of-use land assets and right-of-use land liabilities related to ground leases whereby the LLC/LP is the lessee, with third party lessors, including subsidiaries of UHS. As of September 3 0 , 20 20 , and December 31, 20 19 , aggregate principal amounts due on mortgage notes payable by unconsolidated LLCs /LPs , 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 9/30/2020 12/31/2019 Maturity Date FTX MOB Phase II (5.00% fixed rate mortgage loan) (b.) $ 4,814 $ 4,926 February, 2021 Grayson Properties (5.034% fixed rate mortgage loan) (c.) 13,442 13,658 September, 2021 Brunswick Associates (3.64% fixed rate mortgage loan) 7,917 8,066 December, 2024 Grayson Properties II (3.70% fixed rate construction loan) (d.) 10,352 - June, 2025 $ 36,525 $ 26,650 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. (b.) This loan, originally scheduled to mature on October 1, 2020, was extended with a new maturity date of February 1, 2021, at which time the venture intends to refinance pursuant to a new mortgage loan. (c.) This loan is scheduled to mature within the next twelve months, at which time the venture intends to refinance pursuant to a new mortgage loan. (d.) This construction loan has a maximum balance of $13.1 million and requires unpaid interest on the outstanding principal balance to be paid on a monthly basis through December 1, 2022. Principal and accrued interest monthly payments will commence on January 1, 2023. Pursuant to the operating and/or partnership agreements of the five 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 | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | (6) Recent Accounting Pronouncements Accounting for Lease Concessions Granted in Connection with the COVID-19 Pandemic On April 8, 2020, the Financial Accounting Standards Board ("FASB") held a public meeting and shortly afterwards issued a question-and-answer ("Q&A") document which was intended to provide accounting relief for lease concessions related to the COVID-19 pandemic. The accounting relief permits an entity to choose to forgo the evaluation of the enforceable rights and obligations of a lease contract, which is a requirement of Accounting Standards Codification Topic 842, Leases, as long as the total rent payments after the lease concessions are substantially the same, or less than, the total payments previously required by the lease. An entity may account for COVID-19 related lease concessions either (i) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or (ii) as a lease modification. To the extent that a rent concession is granted as a deferral of payments, but the total lease payments are substantially the same, lessors are allowed to account for the concession as if no change had been made to the original lease contract. Based on the Q&A, an entity is not required to account for all lease concessions related to the effects of the COVID-19 pandemic under one elected option, however, the entity is required to apply the elected option consistently to leases with similar characteristics and in similar circumstances. The COVID-19 pandemic did not start to adversely impact the economic conditions in the United States until late March 2020 and did not have a material effect on our operations or financial results during the three or nine months ended September 30, 2020. We have received short-term rent deferral requests from a portion of tenants under lease at our MOBs. These requests are under review on a request-by-request basis based upon each tenant’s specific circumstances as well as consideration of potential economic benefit available and received by tenants through governmental assistance programs. At this time, we cannot estimate the magnitude of short-term rent deferral requests that we may ultimately agree to provide, or the magnitude of additional short-term rent deferral requests that we may receive in the future. Reference Rate Reform In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. We will evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. Instruments in scope include loans, held-to-maturity debt securities, and net investments in leases as well as reinsurance and trade receivables. In November 2018, the FASB issued ASU 2018-19, which clarifies that operating lease receivables are outside the scope of the new standard. The standard was effective for us in fiscal years beginning after December 15, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Lease Accounting
Lease Accounting | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Accounting | (7) Lease Accounting As Lessor: We lease our operating properties to customers under agreements that are classified as operating leases. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term. Generally, under the terms of our leases, the majority of our rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from our customers. We record amounts reimbursed by customers in the period that the applicable expenses are incurred, which is generally ratably throughout the term of the lease. We have elected the package of practical expedients that allows lessors to not separate lease and non-lease components by class of underlying asset. This practical expedient allowed us to not separate expenses reimbursed by our customers (“tenant reimbursements”) from the associated rental revenue if certain criteria were met. We assessed these criteria and concluded that the timing and pattern of transfer for rental revenue and the associated tenant reimbursements are the same, and as our leases qualify as operating leases, we accounted for and presented rental revenue and tenant reimbursements as a single component under Lease revenue in our condensed consolidated statements of income for the three and nine months ended September 30, 2020 and 2019. The components of the “Lease revenue – UHS facilities” and “Lease revenue – Non-related parties” captions for the three and nine month periods ended September 30, 2020 and 2019 are disaggregated below (in thousands). Base rents are primarily stated rent amounts provided for under the leases that are recognized on a straight-line basis over the lease term. Bonus rents and tenant reimbursements represent amounts where tenants are contractually obligated to pay an amount that is variable in nature. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 UHS facilities: Base rents $ 4,402 $ 4,159 $ 12,940 $ 12,448 Bonus rents 1,680 1,428 4,477 4,174 Tenant reimbursements 299 234 826 643 Lease revenue - UHS facilities $ 6,381 $ 5,821 $ 18,243 $ 17,265 Non-related parties: Base rents 10,390 10,979 31,155 31,999 Tenant reimbursements 2,451 2,576 7,371 7,465 Lease revenue - Non-related parties $ 12,841 $ 13,555 $ 38,526 $ 39,464 Disclosures Related to Certain Hospital Facilities: Southwest Healthcare System, Inland Valley Campus: A wholly-owned subsidiary of UHS has notified us that they are considering termination of the existing lease on Southwest Healthcare System, Inland Valley Campus prior to the scheduled expiration of the current term on December 31, 2021. As permitted pursuant to the terms of the lease, UHS has the right, subject to certain conditions, to propose substitution property with a fair market value substantially equal to that of the existing leased property. UHS is currently evaluating potential substitution properties and is expected to submit their proposal to us by December 31, 2020. Upon receipt, the proposal will be reviewed and evaluated by management of the Trust as well as by our Board of Trustees. All transactions with UHS must be approved by a majority of our Independent Trustees. We can provide no assurance that we will ultimately agree on a property substitution with UHS in connection with the Inland Valley Campus property, in which case, UHS has the right to purchase the property for its fair market value. Pursuant to the terms of the lease on the Inland Valley Campus, we earned $ 3.3 million of lease revenue during the nine-month period ended September 30, 2020 ($ 2.0 million in base rental and $ 1.3 million in bonus rental) and $ 4.3 million during the year ended December 31, 2019 ($ 2.6 million in base rental and $ 1.7 million in bonus rental). Vacancies - Evansville, Indiana and Corpus Christi, Texas: The leases on two hospital facilities, located in Evansville, Indiana, and Corpus Christi, Texas, expired on May 31, 2019 and June 1, 2019, respectively. The former tenant of the hospital located in Evansville, Indiana, entered into a short-term lease with us, which covered the period of June 1, 2019 through September 30, 2019, at a substantially increased lease rate as compared to the original lease rate. The combined lease revenue generated at these facilities amounted to approximately $842,000 and $1.7 million during the three and nine-month periods ended September 30, 2019, respectively. The hospital located in Evansville, Indiana, has remained vacant since September 30, 2019 and the hospital located in Corpus Christi, Texas, has remained vacant since June 1, 2019. We continue to market each property for lease to new tenants. However, should these properties continue to remain owned and vacant for an extended period of time, or should we experience decreased lease rates on future leases, as compared to prior/expired lease rates, or incur substantial renovation costs to make the properties suitable for other operators/tenants, our future results of operations could be materially unfavorably impacted. Kindred Hospital Chicago Central: The existing lease with Kindred Hospital Chicago Central is scheduled to expire on December 31, 2021. Pursuant to the terms of the lease, we earned approximately $1.2 million of lease revenue during the nine-month period ended September 30, 2020, and approximately $1.5 million during the year ended December 31, 2019. We can provide no assurance that the lease on this facility, which during the year ended December 31, 2019 did not generate sufficient operating income to cover its rent due to us, will be renewed, or renewed at existing lease rates, upon maturity. As Lessee: We are the lessee with various third parties, including subsidiaries of UHS, in connection with ground leases for land at fourteen of our consolidated properties. Our right-of-use land assets represent our right to use the land for the lease term and our lease liabilities represent our obligation to make lease payments arising from the leases. Right-of-use assets and lease liabilities were recognized upon adoption of Topic 842 based on the present value of lease payments over the lease term. We utilized our estimated incremental borrowing rate, which was derived from information available as of January 1, 2019, in determining the present value of lease payments. As of September 30, 2020, our condensed consolidated balance sheet includes right-of-use land assets of approximately $8.9 million and ground lease liabilities of approximately $8.9 million. There were no newly leased assets for which a right-of-use asset was recorded in exchange for a new lease liability during the nine months ended September 30, 2020. |
Debt and Financial Instruments
Debt and Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Financial Instruments | (8) 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 $350 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 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. In June 2020, we entered into the first amendment (the “First Amendment”) to the revolving credit agreement (“Credit Agreement”), pursuant to which, among other things, an additional tranche of revolving credit commitments in the amount of $50 million, designated as the “Revolving B Facility”, was established thereby increasing the aggregate revolving credit commitment to $ 350 million from $ 300 million. The Credit Agreement, as amended, which is scheduled to mature in March 2022 , provides for a revolving credit facility in an aggregate principal amount of $ 350 million, including a $ 40 million sublimit for letters of credit and a $ 30 million sublimit for swingline/short-term loans. 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. The remainder of the revolving credit commitments provided under the Credit Agreement that were in effect prior to giving effect to the First Amendment, has been designated as the “Revolving A Facility”. Borrowings made pursuant to the Revolving A Facility 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 Borrowings made pursuant to the Revolving B Facility will bear interest, at our option, at one, two, three, or six months LIBOR plus an applicable margin ranging from 1.85% to 2.10% or at the Base Rate plus an applicable margin ranging from 0.85% to 1.10%. 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 %, the margin over the Base Rate was % and the facility fee was 0.20%. At September 30, 2020, we had $227.1 million of outstanding borrowings and $5.6 million of letters of credit outstanding under our Credit Agreement. We had $117.3 million of available borrowing capacity, net of the outstanding borrowings and letters of credit outstanding as of September 30, 2020. There are no compensating balance requirements. At December 31, 2019, we had $213.0 million of outstanding borrowings outstanding against our revolving credit agreement and $87.0 million of available borrowing capacity. 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 September 30, 2020 and December 31, 2019. We also believe that we would remain in compliance if, based on the assumption that the majority of the potential new borrowings will be used to fund investments, 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 September 30, 2020 December 31, 2019 Tangible net worth > =$125,000 $ 150,247 $ 167,181 Total leverage < 60% 44.0 % 42.3 % Secured leverage < 30% 8.8 % 9.1 % Unencumbered leverage < 60% 40.6 % 38.5 % Fixed charge coverage > 1.50x 4.5x 4.0x As indicated on the following table, we have various mortgages, all of which are non-recourse to us, included on our condensed consolidated balance sheet as of September 30, 2020 (amounts in thousands): Facility Name Outstanding Balance (in Interest Rate Maturity Date 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan $ 5,492 4.54 % June, 2022 BRB Medical Office Building fixed rate mortgage loan 5,560 4.27 % December, 2022 Desert Valley Medical Center fixed rate mortgage loan 4,549 3.62 % January, 2023 2704 North Tenaya Way fixed rate mortgage loan 6,615 4.95 % November, 2023 Summerlin Hospital Medical Office Building III fixed rate mortgage loan 13,101 4.03 % April, 2024 Tuscan Professional Building fixed rate mortgage loan 3,076 5.56 % June, 2025 Phoenix Children’s East Valley Care Center fixed rate mortgage loan 8,780 3.95 % January, 2030 Rosenberg Children's Medical Plaza fixed rate mortgage loan 12,565 4.42 % September, 2033 Total, excluding net debt premium and net financing fees 59,738 Less net financing fees (505 ) Plus net debt premium 154 Total mortgages notes payable, non-recourse to us, net $ 59,387 (a.) All mortgage loans require monthly principal payments through maturity and either fully amortize or include a balloon principal payment upon maturity. The mortgages are secured by the real property of the buildings as well as property leases and rents. The mortgages outstanding as of September 30, 2020 had a combined fair value of approximately $63.1 million. At December 31, 2019, we had various mortgages, all of which were non-recourse to us, included in our condensed consolidated balance sheet. The combined outstanding balance of these various mortgages at December 31, 2019 was $61.1 million and had a combined fair value of approximately $63.1 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. Financial Instruments: In March 2020, we entered into an In January 2020, we entered into an During the third quarter of 2019, we entered into an We measure our interest rate swaps at fair value on a recurring basis. The fair value of our interest rate swaps is based on quotes from third parties. We consider those inputs to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosures in connection with derivative instruments and hedging activities. At September 30, 2020, the fair value of our interest rate swaps was a net liability of $4.7 million which is included in accrued expenses and other liabilities on the accompanying condensed consolidated balance sheet. During the third quarter of 2020, we paid or accrued approximately $299,000 to the counterparty by us, adjusted for the previous quarter accrual, pursuant to the terms of the swaps. During the first nine months of 2020, we paid or accrued approximately $430,000 in net payments made to the counterparty by us, adjusted for the previous quarter accrual, pursuant to the terms of the swaps (consisting of approximately $521,000 in payments, adjusted for the previous quarter accrual, or accruals made to the counterparty by us, offset by approximately $91,000 of payments paid to us by the counterparty). From inception of the swap agreements through September 30, 2020 we paid or accrued approximately $322,000 in net payments made to the counterparty by us pursuant to the terms of the swap (consisting of approximately $ in payments or accruals made to us by the counterparty, offset by approximately $ of payments due to the counterparty from us) . Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either an asset or a liability, with a corresponding amount recorded in accumulated other comprehensive income (“AOCI”) within shareholders’ equity. Amounts are classified from AOCI to the income statement in the period or periods the hedged transaction affects earnings. During the third quarter of 2016, we entered into an March, 2019 During the second quarter of 2016, we entered into an March 2019 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (9) Segment Reporting Our primary business is investing in and leasing healthcare and human service facilities through direct ownership or through joint ventures, which aggregate into a single reportable segment. We actively manage our portfolio of healthcare and human service facilities and may from time to time make decisions to sell lower performing properties not meeting our long-term investment objectives. The proceeds of sales are typically reinvested in new developments or acquisitions, which we believe will meet our planned rate of return. It is our intent that all healthcare and human service facilities will be owned or developed for investment purposes. Our revenue and net income are generated from the operation of our investment portfolio. Our portfolio is located throughout the United States, however, we do not distinguish or group our operations on a geographical basis for purposes of allocating resources or measuring performance. We review operating and financial data for each property on an individual basis; therefore, we define an operating segment as our individual properties. Individual properties have been aggregated into one reportable segment based upon their similarities with regard to both the nature and economics of the facilities, tenants and operational processes, as well as long-term average financial performance. No individual property meets the requirements necessary to be considered its own segment. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Accounting for Lease Concessions Granted in Connection with the COVID-19 Pandemic On April 8, 2020, the Financial Accounting Standards Board ("FASB") held a public meeting and shortly afterwards issued a question-and-answer ("Q&A") document which was intended to provide accounting relief for lease concessions related to the COVID-19 pandemic. The accounting relief permits an entity to choose to forgo the evaluation of the enforceable rights and obligations of a lease contract, which is a requirement of Accounting Standards Codification Topic 842, Leases, as long as the total rent payments after the lease concessions are substantially the same, or less than, the total payments previously required by the lease. An entity may account for COVID-19 related lease concessions either (i) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or (ii) as a lease modification. To the extent that a rent concession is granted as a deferral of payments, but the total lease payments are substantially the same, lessors are allowed to account for the concession as if no change had been made to the original lease contract. Based on the Q&A, an entity is not required to account for all lease concessions related to the effects of the COVID-19 pandemic under one elected option, however, the entity is required to apply the elected option consistently to leases with similar characteristics and in similar circumstances. The COVID-19 pandemic did not start to adversely impact the economic conditions in the United States until late March 2020 and did not have a material effect on our operations or financial results during the three or nine months ended September 30, 2020. We have received short-term rent deferral requests from a portion of tenants under lease at our MOBs. These requests are under review on a request-by-request basis based upon each tenant’s specific circumstances as well as consideration of potential economic benefit available and received by tenants through governmental assistance programs. At this time, we cannot estimate the magnitude of short-term rent deferral requests that we may ultimately agree to provide, or the magnitude of additional short-term rent deferral requests that we may receive in the future. Reference Rate Reform In March 2020, the FASB issued an accounting standard classified under FASB ASC Topic 848, “Reference Rate Reform.” The amendments in this update contain practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. We will evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. Instruments in scope include loans, held-to-maturity debt securities, and net investments in leases as well as reinsurance and trade receivables. In November 2018, the FASB issued ASU 2018-19, which clarifies that operating lease receivables are outside the scope of the new standard. The standard was effective for us in fiscal years beginning after December 15, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Relationship with Universal H_2
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 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 (b . ) UHS has two |
Summarized Financial Informat_2
Summarized Financial Information of Equity Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Limited Liability Companies Accounted for Under Equity Method | The following property table represents the five LLCs/LPs in which we own a non-controlling interest (including one that is currently under construction) and were accounted for under the equity method as of September 30, 2020: Name of LLC/LP Ownership Property Owned by LLC/LP Suburban Properties 33 % St. Matthews Medical Plaza II Brunswick Associates (a.)(e.) 74 % Mid Coast Hospital MOB Grayson Properties (b.)(f.) 95 % Texoma Medical Plaza FTX MOB Phase II (c.) 95 % Forney Medical Plaza II Grayson Properties II (d.)(f.) 95 % Texoma Medical Plaza II (a.) This LLC has a third-party term loan of $7.9 million, which is non-recourse to us, outstanding as of September 30, 2020. (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 $13.4 million, outstanding as of September 30, 2020. (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 September 3 0 , 20 20 . This LP has a third-party term loan, which is non-recourse to us, of $ million , outstanding as of September 3 0 , 20 20 . This loan, originally scheduled to mature on October 1, 2020, was extended with a new maturity date of February 1, 2021. (d.) This MOB, currently under construction, will be located in Denison, Texas on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $4.8 million in equity and debt financing, none of which has been funded as of September 30, 2020. This LP entered into a $13.1 million third-party construction loan, which is non-recourse to us and has an outstanding balance of $10.4 million as of September 30, 2020. The LP will develop, construct, own and operate the Texoma Medical Plaza II which is expected to open in late 2020. (e.) The LLC is the lessee with a third party lessor under a ground lease for land. (f.) The LPs are the lessee, or have committed to a lease, with a UHS-related party for the land related to this property. |
Condensed Combined Statements of Income (Unaudited) for LLCs/LPs Accounted Under Equity Method | Below are the condensed combined statements of income (unaudited) for the four LLCs/LPs (excluding one that owns an MOB that is currently under construction) accounted for under the equity method at September 30, 2020 and 2019. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (amounts in thousands) (amounts in thousands) Revenues $ 2,624 $ 2,441 $ 7,637 $ 7,432 Operating expenses 1,047 927 3,094 2,933 Depreciation and amortization 444 434 1,333 1,317 Interest, net 315 325 949 969 Net income $ 818 $ 755 $ 2,261 $ 2,213 Our share of net income $ 517 $ 453 $ 1,371 $ 1,337 |
Condensed Combined Balance Sheets (Unaudited) for LLCs/LPs Accounted Under Equity Method | Below are the condensed combined balance sheets (unaudited) for the five above-mentioned LLCs/LPs (including one LP that currently owns an MOB under construction) that were accounted for under the equity method as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (amounts in thousands) Net property, including construction in progress $ 40,979 $ 33,207 Other assets (a.) 8,275 7,452 Total assets $ 49,254 $ 40,659 Other liabilities (a.) $ 7,384 $ 6,785 Mortgage notes payable, non-recourse to us 36,525 26,650 Equity 5,345 7,224 Total liabilities and equity $ 49,254 $ 40,659 Investments in LLCs before amounts included in accrued expenses and other liabilities $ 4,366 $ 6,918 Amounts included in accrued expenses and other liabilities (1,544 ) (1,856 ) Our share of equity in LLCs, net $ 2,822 $ 5,062 (a.) Other assets and other liabilities as of both September 30, 2020 and December 31, 2019 includes approximately $3.7 million of right-of-use land assets and right-of-use land liabilities related to ground leases whereby the LLC/LP is the lessee, with third party lessors, including subsidiaries of UHS. |
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's/LPs Accounted Under Equity Method | Mortgage Loan Balance (a.) Name of LLC/LP 9/30/2020 12/31/2019 Maturity Date FTX MOB Phase II (5.00% fixed rate mortgage loan) (b.) $ 4,814 $ 4,926 February, 2021 Grayson Properties (5.034% fixed rate mortgage loan) (c.) 13,442 13,658 September, 2021 Brunswick Associates (3.64% fixed rate mortgage loan) 7,917 8,066 December, 2024 Grayson Properties II (3.70% fixed rate construction loan) (d.) 10,352 - June, 2025 $ 36,525 $ 26,650 (a.) All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity. (b.) This loan, originally scheduled to mature on October 1, 2020, was extended with a new maturity date of February 1, 2021, at which time the venture intends to refinance pursuant to a new mortgage loan. (c.) This loan is scheduled to mature within the next twelve months, at which time the venture intends to refinance pursuant to a new mortgage loan. (d.) This construction loan has a maximum balance of $13.1 million and requires unpaid interest on the outstanding principal balance to be paid on a monthly basis through December 1, 2022. Principal and accrued interest monthly payments will commence on January 1, 2023. |
Lease Accounting (Tables)
Lease Accounting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Components of the "Lease Revenue - UHS facilities" and "Lease Revenue - Non-related Parties" Captions | The components of the “Lease revenue – UHS facilities” and “Lease revenue – Non-related parties” captions for the three and nine month periods ended September 30, 2020 and 2019 are disaggregated below (in thousands). Base rents are primarily stated rent amounts provided for under the leases that are recognized on a straight-line basis over the lease term. Bonus rents and tenant reimbursements represent amounts where tenants are contractually obligated to pay an amount that is variable in nature. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 UHS facilities: Base rents $ 4,402 $ 4,159 $ 12,940 $ 12,448 Bonus rents 1,680 1,428 4,477 4,174 Tenant reimbursements 299 234 826 643 Lease revenue - UHS facilities $ 6,381 $ 5,821 $ 18,243 $ 17,265 Non-related parties: Base rents 10,390 10,979 31,155 31,999 Tenant reimbursements 2,451 2,576 7,371 7,465 Lease revenue - Non-related parties $ 12,841 $ 13,555 $ 38,526 $ 39,464 |
Debt and Financial Instruments
Debt and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 December 31, 2019 Tangible net worth > =$125,000 $ 150,247 $ 167,181 Total leverage < 60% 44.0 % 42.3 % Secured leverage < 30% 8.8 % 9.1 % Unencumbered leverage < 60% 40.6 % 38.5 % Fixed charge coverage > 1.50x 4.5x 4.0x |
Outstanding Mortgages, Excluding Net Debt Premium | As indicated on the following table, we have various mortgages, all of which are non-recourse to us, included on our condensed consolidated balance sheet as of September 30, 2020 (amounts in thousands): Facility Name Outstanding Balance (in Interest Rate Maturity Date 700 Shadow Lane and Goldring MOBs fixed rate mortgage loan $ 5,492 4.54 % June, 2022 BRB Medical Office Building fixed rate mortgage loan 5,560 4.27 % December, 2022 Desert Valley Medical Center fixed rate mortgage loan 4,549 3.62 % January, 2023 2704 North Tenaya Way fixed rate mortgage loan 6,615 4.95 % November, 2023 Summerlin Hospital Medical Office Building III fixed rate mortgage loan 13,101 4.03 % April, 2024 Tuscan Professional Building fixed rate mortgage loan 3,076 5.56 % June, 2025 Phoenix Children’s East Valley Care Center fixed rate mortgage loan 8,780 3.95 % January, 2030 Rosenberg Children's Medical Plaza fixed rate mortgage loan 12,565 4.42 % September, 2033 Total, excluding net debt premium and net financing fees 59,738 Less net financing fees (505 ) Plus net debt premium 154 Total mortgages notes payable, non-recourse to us, net $ 59,387 (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) | Sep. 30, 2020PropertyHospital |
COVID-19 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of acute care hospitals | Hospital | 3 |
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% |
Limited Liability Companies | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of real estate investments | Property | 5 |
Relationship with Universal H_3
Relationship with Universal Health Services, Inc. ("UHS") and Related Party Transactions - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)PropertyTimeLease | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)PropertyTimeLease | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | ||
Related Party Transaction [Line Items] | ||||||
Annual advisory fee as percentage of average invested real estate assets | 0.70% | 0.70% | 0.70% | 0.70% | ||
Universal Health Services, Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Number of term renewal options | Time | 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 | |||||
Number of renewal options at existing lease rate | Time | 3 | |||||
Lease revenue | [1] | $ 6,381,000 | $ 5,821,000 | $ 18,243,000 | $ 17,265,000 | |
Number of ground leases | Lease | 11 | 11 | ||||
Aggregate lease payments for 2020 | $ 482,000 | $ 482,000 | ||||
Aggregate lease payments for 2021 | 482,000 | 482,000 | ||||
Aggregate lease payments for 2022 | 482,000 | 482,000 | ||||
Aggregate lease payments for 2023 | 482,000 | 482,000 | ||||
Aggregate lease payments for 2024 | 482,000 | 482,000 | ||||
Aggregate lease payments for thereafter | $ 27,500,000 | $ 27,500,000 | ||||
Percentage ownership of outstanding shares | 5.70% | 5.70% | 5.70% | |||
Universal Health Services, Inc | Southwest Healthcare System, Inland Valley Campus | ||||||
Related Party Transaction [Line Items] | ||||||
Lease expiration date | Dec. 31, 2021 | |||||
Lease revenue | $ 3,300,000 | $ 4,300,000 | ||||
Universal Health Services, Inc | Base Rents | ||||||
Related Party Transaction [Line Items] | ||||||
Lease revenue | $ 4,402,000 | 4,159,000 | 12,940,000 | 12,448,000 | ||
Universal Health Services, Inc | Base Rents | Southwest Healthcare System, Inland Valley Campus | ||||||
Related Party Transaction [Line Items] | ||||||
Lease revenue | 2,000,000 | 2,600,000 | ||||
Universal Health Services, Inc | Bonus Rents | ||||||
Related Party Transaction [Line Items] | ||||||
Lease revenue | $ 1,680,000 | $ 1,428,000 | 4,477,000 | $ 4,174,000 | ||
Universal Health Services, Inc | Bonus Rents | Southwest Healthcare System, Inland Valley Campus | ||||||
Related Party Transaction [Line Items] | ||||||
Lease revenue | $ 1,300,000 | $ 1,700,000 | ||||
Universal Health Services, Inc | Customer Concentration Risk | Revenues | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of revenues generated from leases and tenants | 23.00% | 21.00% | 22.00% | 22.00% | ||
Universal Health Services, Inc | Customer Concentration Risk | Revenues | Tenants | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of revenues generated from leases and tenants | 34.00% | 30.00% | 33.00% | 31.00% | ||
Universal Health Services, Inc | Hospital Facilities Leased | ||||||
Related Party Transaction [Line Items] | ||||||
Number of acute care hospitals | Property | 3 | 3 | ||||
Universal Health Services, Inc | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Initial lease terms | 13 years | |||||
Remaining lease terms on ground leases | 29 years | |||||
Universal Health Services, Inc | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Initial lease terms | 15 years | |||||
Remaining lease terms on ground leases | 79 years | |||||
Universal Health Services of Delaware Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Advisory fee | $ 1,000,000 | $ 1,000,000 | $ 3,100,000 | $ 3,000,000 | ||
Cost, Product and Service [Extensible List] | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | us-gaap:ManagementServiceMember | ||
Average invested real estate assets | $ 594,000,000 | $ 578,000,000 | $ 587,000,000 | $ 564,000,000 | ||
[1] | Includes bonus rental on UHS hospital facilities of $1,680 and $1,428 for the three-month periods ended September 30, 2020 and 2019, respectively, and $4,477 and $4,174 for the nine-month periods ended September 30, 2020 and 2019, respectively. |
Existing Lease Terms and Renewa
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Detail) - Universal Health Services, Inc | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
McAllen Medical Center | ||
Operating Leased Assets [Line Items] | ||
Annual Minimum Rent | $ 5,485,000 | |
End of Lease Term | 2026-12 | |
Renewal Term (years) | 5 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 one | |
[2] | UHS has two |
Existing Lease Terms and Rene_2
Existing Lease Terms and Renewal Options for Each of UHS Hospital Facilities (Parenthetical) (Detail) - Universal Health Services, Inc | 9 Months Ended |
Sep. 30, 2020TimeRenewalOption | |
Operating Leased Assets [Line Items] | |
Number of renewal option at existing lease rate | 3 |
McAllen Medical Center | |
Operating Leased Assets [Line Items] | |
Number of renewal option at existing lease rate | 1 |
Renewal option term at existing lease rate | 5 years |
Renewal option at existing lease rate expiration year | 2031 |
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 | 2022 |
Wellington Regional Medical Center And Southwest Healthcare System | Maximum | |
Operating Leased Assets [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2031 |
Dividends and Equity Issuance_2
Dividends and Equity Issuance Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividends and Equity Issuance [Line Items] | |||||
Dividends declared | $ 9,501 | $ 9,355 | $ 28,426 | $ 27,988 | |
Declared dividends, per share | $ 0.69 | $ 2.065 | |||
Dividends payable, date to be paid | Sep. 30, 2020 | ||||
Dividends declared and paid | $ 9,500 | $ 9,400 | $ 28,411 | $ 27,988 | |
Declared and paid dividends, per share | $ 0.69 | $ 0.68 | $ 2.065 | $ 2.035 | |
At-The-Market Equity Issuance Program (ATM) | |||||
Dividends and Equity Issuance [Line Items] | |||||
Aggregate sales of threshold amount | $ 100,000 | ||||
Issued (in shares) | 0 | 2,704 | |||
Average sale price per share | $ 101.30 | ||||
Net cash proceeds from stock issued | $ 270,000 | ||||
Payment of stock issuance cost | $ 4,000 | ||||
At-The-Market Equity Issuance Program (ATM) | Other Expenses | |||||
Dividends and Equity Issuance [Line Items] | |||||
Payments for stock issuance | $ 507,000 |
New Construction, Acquisition_2
New Construction, Acquisitions and Dispositions - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | |||
Apr. 30, 2020ft² | Sep. 30, 2019USD ($)ft² | Jul. 31, 2019USD ($)Time | Sep. 30, 2020USD ($)TimeAcquisitionDisposition | Sep. 30, 2019USD ($)ft²AcquisitionDisposition | |
Business Acquisitions And Dispositions [Line Items] | |||||
Outstanding loan balance | $ 10,400 | ||||
Construction loan scheduled maturity | Jun. 1, 2025 | ||||
Number of acquisitions | Acquisition | 0 | 0 | |||
Number of dispositions | Disposition | 0 | 0 | |||
Medical Office Buildings Third Floor | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Rentable square feet reduced in master flex lease commitment | ft² | 20,000 | ||||
Medical office buildings | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Third-party tenant lease term | 122 months | ||||
Medical Office Buildings First Floor | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Percentage of rentable square feet | 61.00% | ||||
Universal Health Services, Inc | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Master flex lease term | 10 years | ||||
Rentable square feet | ft² | 40,000 | 40,000 | |||
Percentage of rentable square feet | 50.00% | ||||
Number of term renewal options | Time | 6 | ||||
Universal Health Services, Inc | Medical Office Buildings Third Floor | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Rentable square feet | ft² | 20,000 | 20,000 | |||
Universal Health Services, Inc | Maximum | Medical Office Buildings First and Second Floor | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Rentable square feet | ft² | 20,000 | 20,000 | |||
Third-Party Tenant | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Construction loan | $ 13,100 | $ 13,100 | |||
Third-Party Tenant | Medical Office Buildings First Floor | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Rentable square feet | ft² | 26,000 | ||||
Universal Health Services, Inc and Catholic Health Initiatives | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Triple net lease agreement period | 20 years | ||||
Number of term renewal options | Time | 5 | ||||
Renewal option term | 10 years | ||||
Project manager's aggregate fee | $ 750,000 | ||||
Estimated approximate project cost | 37,500,000 | ||||
Estimated initial annual rent | $ 2,700,000 | ||||
Des Moines Medical Properties, LLC | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Land and development and construction costs | $ 25,000,000 | ||||
Grayson Properties II LP | Medical office buildings | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Committed investment in equity or member loans | 0 | 0 | |||
Grayson Properties II LP | Maximum | Medical office buildings | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Commitment to investment | $ 4,800 | $ 4,800 | |||
Grayson Properties II LP | Denison, Texas | |||||
Business Acquisitions And Dispositions [Line Items] | |||||
Non-controlling equity interest, ownership percentage | 95.00% | 95.00% |
Summarized Financial Informat_3
Summarized Financial Information of Equity Affiliates - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020Property | |
Limited Liability Companies | Medical office buildings | |
Schedule Of Equity Method Investments [Line Items] | |
Number of real estate investments | 5 |
Number of real estate investments under construction | 1 |
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 | 9 Months Ended | |
Sep. 30, 2020 | ||
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],[2] |
Property Owned by LLC/LP | Mid Coast Hospital MOB | [1],[2] |
Grayson Properties | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [3],[4] |
Property Owned by LLC/LP | Texoma Medical Plaza | [3],[4] |
FTX MOB Phase II limited partnership | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [5] |
Property Owned by LLC/LP | Forney Medical Plaza II | [5] |
Grayson Properties II | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership | 95.00% | [3],[6] |
Property Owned by LLC/LP | Texoma Medical Plaza II | [3],[6] |
[1] | The LLC is the lessee with a third party lessor under a ground lease for land. | |
[2] | This LLC has a third-party term loan of $7.9 million, which is non-recourse to us, outstanding as of September 30, 2020. | |
[3] | The LPs are the lessee, or have committed to a lease, with a UHS-related party for the land related to this property. | |
[4] | 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 $13.4 million, outstanding as of September 30, 2020. | |
[5] | 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 September 3 0 , 20 20 . This LP has a third-party term loan, which is non-recourse to us, of $ million , outstanding as of September 3 0 , 20 20 . This loan, originally scheduled to mature on October 1, 2020, was extended with a new maturity date of February 1, 2021. | |
[6] | This MOB, currently under construction, will be located in Denison, Texas on the campus of a hospital owned and operated by a wholly-owned subsidiary of UHS. We have committed to invest up to $4.8 million in equity and debt financing, none of which has been funded as of September 30, 2020. This LP entered into a $13.1 million third-party construction loan, which is non-recourse to us and has an outstanding balance of $10.4 million as of September 30, 2020. The LP will develop, construct, own and operate the Texoma Medical Plaza II which is expected to open in late 2020. |
Limited Liability Companies A_2
Limited Liability Companies Accounted for Under Equity Method (Parenthetical) (Detail) | Sep. 30, 2020USD ($) |
Brunswick Associates | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | $ 7,900,000 |
Grayson Properties II | |
Schedule Of Equity Method Investments [Line Items] | |
Construction loan | 13,100,000 |
Construction loan outstanding balance | 10,400,000 |
Grayson Properties II | Denison, Texas | |
Schedule Of Equity Method Investments [Line Items] | |
Committed investment in equity and debt financing, funded | 0 |
Grayson Properties II | Maximum | Denison, Texas | |
Schedule Of Equity Method Investments [Line Items] | |
Commitment to investment | 4,800,000 |
Grayson Properties | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 13,400,000 |
FTX MOB Phase II limited partnership | |
Schedule Of Equity Method Investments [Line Items] | |
Third-party term loan | 4,800,000 |
Committed investment in equity and debt financing, funded | 2,100,000 |
FTX MOB Phase II limited partnership | Maximum | |
Schedule Of Equity Method Investments [Line Items] | |
Commitment to investment | $ 2,500,000 |
Condensed Combined Statement of
Condensed Combined Statement of Income for LLCs/LPs Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Revenues | $ 19,692 | $ 19,866 | $ 58,180 | $ 58,304 |
Net income | 14,447 | 13,126 | ||
Our share of net income | 517 | 453 | 1,371 | 1,337 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Revenues | 2,624 | 2,441 | 7,637 | 7,432 |
Operating expenses | 1,047 | 927 | 3,094 | 2,933 |
Depreciation and amortization | 444 | 434 | 1,333 | 1,317 |
Interest, net | 315 | 325 | 949 | 969 |
Net income | 818 | 755 | 2,261 | 2,213 |
Our share of net income | $ 517 | $ 453 | $ 1,371 | $ 1,337 |
Condensed Combined Balance Shee
Condensed Combined Balance Sheets for LLCs/LPs Accounted Under Equity Method (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule Of Equity Method Investments [Line Items] | |||||||
Total Assets | $ 490,621 | $ 488,789 | |||||
Equity | 162,394 | $ 166,240 | 181,734 | $ 184,625 | $ 188,540 | $ 198,610 | |
Total Liabilities and Equity | 490,621 | 488,789 | |||||
Investments in LLCs before amounts included in accrued expenses and other liabilities | 4,366 | 6,918 | |||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Net property, including construction in progress | 40,979 | 33,207 | |||||
Other assets | [1] | 8,275 | 7,452 | ||||
Total Assets | 49,254 | 40,659 | |||||
Other liabilities | [1] | 7,384 | 6,785 | ||||
Mortgage notes payable, non-recourse to us | 36,525 | 26,650 | |||||
Equity | 5,345 | 7,224 | |||||
Total Liabilities and Equity | 49,254 | 40,659 | |||||
Investments in LLCs before amounts included in accrued expenses and other liabilities | 4,366 | 6,918 | |||||
Amounts included in accrued expenses and other liabilities | (1,544) | (1,856) | |||||
Our share of equity in LLCs, net | $ 2,822 | $ 5,062 | |||||
[1] | Other assets and other liabilities as of both September 30, 2020 and December 31, 2019 includes approximately $3.7 million of right-of-use land assets and right-of-use land liabilities related to ground leases whereby the LLC/LP is the lessee, with third party lessors, including subsidiaries of UHS. |
Condensed Combined Balance Sh_2
Condensed Combined Balance Sheets for LLCs/LPs Accounted Under Equity Method (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||
Right-of-use land assets | $ 8,922 | $ 8,944 |
Right-of-use land liabilities | 8,922 | 8,944 |
Limited Liability Companies | ||
Schedule Of Equity Method Investments [Line Items] | ||
Right-of-use land assets | 3,700 | 3,700 |
Right-of-use land liabilities | $ 3,700 | $ 3,700 |
Aggregate Principal Amounts due
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's/LPs Accounted Under Equity Method (Detail) - Equity Method Investments - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 36,525 | $ 26,650 |
FTX MOB Phase II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1],[2] | $ 4,814 | 4,926 |
Maturity Date | [2] | 2021-02 | |
Grayson Properties | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1],[3] | $ 13,442 | 13,658 |
Maturity Date | [3] | 2021-09 | |
Brunswick Associates | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1] | $ 7,917 | $ 8,066 |
Maturity Date | 2024-12 | ||
Grayson Properties II LP | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage Loan Balance | [1],[4] | $ 10,352 | |
Maturity Date | [4] | 2025-06 | |
[1] | All mortgage loans require monthly principal payments through maturity and include a balloon principal payment upon maturity | ||
[2] | This loan, originally scheduled to mature on October 1, 2020, was extended with a new maturity date of February 1, 2021, at which time the venture intends to refinance pursuant to a new mortgage loan. | ||
[3] | This loan is scheduled to mature within the next twelve months, at which time the venture intends to refinance pursuant to a new mortgage loan. | ||
[4] | This construction loan has a maximum balance of $13.1 million and requires unpaid interest on the outstanding principal balance to be paid on a monthly basis through December 1, 2022. Principal and accrued interest monthly payments will commence on January 1, 2023. |
Aggregate Principal Amounts d_2
Aggregate Principal Amounts due on Mortgage and Construction Notes Payable by Unconsolidated LLC's/LPs Accounted Under Equity Method (Parenthetical) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Grayson Properties II LP | |
Schedule Of Equity Method Investments [Line Items] | |
Construction loan | $ 13.1 |
Principal and accrued interest monthly payments | Jan. 1, 2023 |
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% |
3.70% Fixed Rate Mortgage Loan | Grayson Properties II LP | |
Schedule Of Equity Method Investments [Line Items] | |
Loan interest rate fixed percentage | 3.70% |
Lease Accounting - Components o
Lease Accounting - Components of the "Lease Revenue - UHS facilities" and "Lease Revenue - Non-related Parties" Captions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Non-Related Parties | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | $ 12,841 | $ 13,555 | $ 38,526 | $ 39,464 | |
Non-Related Parties | Base Rents | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | 10,390 | 10,979 | 31,155 | 31,999 | |
Non-Related Parties | Tenant Reimbursements | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | 2,451 | 2,576 | 7,371 | 7,465 | |
Universal Health Services, Inc | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | [1] | 6,381 | 5,821 | 18,243 | 17,265 |
Universal Health Services, Inc | Base Rents | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | 4,402 | 4,159 | 12,940 | 12,448 | |
Universal Health Services, Inc | Bonus Rents | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | 1,680 | 1,428 | 4,477 | 4,174 | |
Universal Health Services, Inc | Tenant Reimbursements | |||||
Leases Disclosure [Line Items] | |||||
Lease revenue | $ 299 | $ 234 | $ 826 | $ 643 | |
[1] | Includes bonus rental on UHS hospital facilities of $1,680 and $1,428 for the three-month periods ended September 30, 2020 and 2019, respectively, and $4,477 and $4,174 for the nine-month periods ended September 30, 2020 and 2019, respectively. |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Land | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | ||
Leases Disclosure [Line Items] | ||||||
Lessee in connection with ground leases for land | Land | 14 | |||||
Right-of-use land assets | $ 8,922 | $ 8,922 | $ 8,944 | |||
Ground lease liabilities | 8,922 | $ 8,922 | 8,944 | |||
Evansville Rehabilitation Hospital Evansville, Indiana | ||||||
Leases Disclosure [Line Items] | ||||||
Lease expiration date | May 31, 2019 | |||||
Evansville Indiana and Corpus Christi Texas | ||||||
Leases Disclosure [Line Items] | ||||||
Lease revenue | $ 842,000 | $ 1,700 | ||||
Corpus Christi Corpus Christi Texas | ||||||
Leases Disclosure [Line Items] | ||||||
Lease expiration date | Jun. 1, 2019 | |||||
Kindred Chicago Central Hospital Central Chicago, Illinois | ||||||
Leases Disclosure [Line Items] | ||||||
Lease expiration date | Dec. 31, 2021 | |||||
Lease revenue | $ 1,200 | 1,500 | ||||
Universal Health Services, Inc | ||||||
Leases Disclosure [Line Items] | ||||||
Lease revenue | [1] | 6,381 | 5,821 | $ 18,243 | 17,265 | |
Universal Health Services, Inc | Southwest Healthcare System, Inland Valley Campus | ||||||
Leases Disclosure [Line Items] | ||||||
Lease expiration date | Dec. 31, 2021 | |||||
Lease revenue | $ 3,300 | 4,300 | ||||
Universal Health Services, Inc | Base Rents | ||||||
Leases Disclosure [Line Items] | ||||||
Lease revenue | 4,402 | 4,159 | 12,940 | 12,448 | ||
Universal Health Services, Inc | Base Rents | Southwest Healthcare System, Inland Valley Campus | ||||||
Leases Disclosure [Line Items] | ||||||
Lease revenue | 2,000 | 2,600 | ||||
Universal Health Services, Inc | Bonus Rents | ||||||
Leases Disclosure [Line Items] | ||||||
Lease revenue | $ 1,680 | $ 1,428 | 4,477 | $ 4,174 | ||
Universal Health Services, Inc | Bonus Rents | Southwest Healthcare System, Inland Valley Campus | ||||||
Leases Disclosure [Line Items] | ||||||
Lease revenue | $ 1,300 | $ 1,700 | ||||
[1] | Includes bonus rental on UHS hospital facilities of $1,680 and $1,428 for the three-month periods ended September 30, 2020 and 2019, respectively, and $4,477 and $4,174 for the nine-month periods ended September 30, 2020 and 2019, respectively. |
Debt and Financial Instrument_2
Debt and Financial Instruments - Additional Information (Detail) | Mar. 27, 2018USD ($)Option | Mar. 31, 2020USD ($)Derivative | Jan. 31, 2020USD ($)Derivative | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)Derivative | Mar. 31, 2019USD ($) | Sep. 30, 2016USD ($)Derivative | Jun. 30, 2016USD ($)Derivative | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)Derivative | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from lines of credit | $ 14,150,000 | $ 9,250,000 | |||||||||||||
Outstanding borrowings under revolving credit agreement | $ 227,100,000 | 227,100,000 | $ 212,950,000 | ||||||||||||
Letters of credit outstanding | 5,600 | 5,600 | |||||||||||||
Available borrowing capacity | 117,300,000 | 117,300,000 | 87,000,000 | ||||||||||||
Compensating balance | 0 | 0 | |||||||||||||
Interest Rate Swap | Cash Flow Hedge | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of interest rate cap agreements | Derivative | 1 | 1 | 1 | 1 | |||||||||||
Derivative instruments, fixed rate | 0.565% | 1.4975% | 1.144% | 1.144% | |||||||||||
Notional amount | $ 55,000,000 | $ 35,000,000 | $ 50,000,000 | $ 50,000,000 | |||||||||||
Expiration date of interest rate | Mar. 25, 2027 | Sep. 16, 2024 | Sep. 16, 2024 | ||||||||||||
Interest Rate Cap | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of interest rate cap agreements | Derivative | 1 | 1 | |||||||||||||
Notional amount | $ 30,000,000 | $ 30,000,000 | |||||||||||||
Expiration date of interest rate | Mar. 31, 2019 | Mar. 31, 2019 | |||||||||||||
Derivative interest rate cap, payment received or accrued from counterparties | $ 61,000 | $ 144,000 | $ 205,000 | $ 205,000 | |||||||||||
Premium paid | $ 55,000 | $ 115,000 | |||||||||||||
Level 2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Mortgage loan fair value | 63,100,000 | 63,100,000 | 63,100,000 | ||||||||||||
Mortgage debt | $ 61,100,000 | ||||||||||||||
Derivative interest rate cap, net payment received or accrued from counterparties | 322,000 | ||||||||||||||
Derivative interest rate cap, payment received or accrued from counterparties | 199,000 | ||||||||||||||
Derivative interest rate cap, offset due to counterparties | 521,000 | ||||||||||||||
Level 2 | Interest Rate Swap | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Liability derivatives, fair value | 4,700,000 | 4,700,000 | |||||||||||||
Derivative interest rate cap, net payment received or accrued from counterparties | 299,000 | 430,000 | |||||||||||||
Derivative interest rate cap, payment received or accrued from counterparties | 521,000 | ||||||||||||||
Derivative interest rate cap, offset due to counterparties | 91,000 | ||||||||||||||
LIBOR | Interest Rate Cap | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Derivative instruments, LIBOR rate | 1.50% | 1.50% | |||||||||||||
Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding borrowing | $ 350,000,000 | $ 350,000,000 | |||||||||||||
Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding borrowing | $ 350,000,000 | ||||||||||||||
Unsecured revolving amended credit agreement terminated date | 2022-03 | ||||||||||||||
Number of additional six month extension options | Option | 2 | ||||||||||||||
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 | ||||||||||||||
Revolving B Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding borrowing | $ 300,000,000 | ||||||||||||||
Proceeds from lines of credit | 50,000,000 | ||||||||||||||
Increase in borrowing capacity | $ 350,000,000 | ||||||||||||||
Credit facility, Interest Rate Terms | one, two, three, or six months LIBOR plus an applicable margin ranging from 1.85% to 2.10% or at the Base Rate plus an applicable margin ranging from 0.85% to 1.10%. | ||||||||||||||
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%. | ||||||||||||||
Facility fee payable on commitment | 0.20% | ||||||||||||||
Revolving B Facility | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 1.95% | 1.95% | |||||||||||||
Revolving B Facility | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 0.95% | 0.95% | |||||||||||||
Revolving B Facility | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Facility fee payable on commitment | 0.15% | ||||||||||||||
Revolving B Facility | Minimum | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 1.85% | ||||||||||||||
Margin points added to the base rate | 1.00% | ||||||||||||||
Revolving B Facility | Minimum | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 0.85% | ||||||||||||||
Revolving B Facility | Minimum | Federal Funds Effective Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the base rate | 0.50% | ||||||||||||||
Revolving B Facility | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Facility fee payable on commitment | 0.35% | ||||||||||||||
Revolving B Facility | Maximum | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 2.10% | ||||||||||||||
Revolving B Facility | Maximum | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 1.10% | ||||||||||||||
Revolving A Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
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% | ||||||||||||||
Revolving A Facility | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 1.20% | ||||||||||||||
Revolving A Facility | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 0.20% | ||||||||||||||
Revolving A Facility | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Facility fee payable on commitment | 0.15% | ||||||||||||||
Revolving A Facility | Minimum | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 1.10% | ||||||||||||||
Margin points added to the base rate | 1.00% | ||||||||||||||
Revolving A Facility | Minimum | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 0.10% | ||||||||||||||
Revolving A Facility | Minimum | Federal Funds Effective Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the base rate | 0.50% | ||||||||||||||
Revolving A Facility | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Facility fee payable on commitment | 0.35% | ||||||||||||||
Revolving A Facility | Maximum | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 1.35% | ||||||||||||||
Revolving A Facility | Maximum | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Margin points added to the reference rate | 0.35% |
Summary of Required Compliance
Summary of Required Compliance Ratios in Connection with Terms of Credit Agreement (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Covenant, Tangible net worth | $ 125,000 | |
Tangible net worth | $ 150,247 | $ 167,181 |
Total leverage | 44.00% | 42.30% |
Secured leverage | 8.80% | 9.10% |
Unencumbered leverage | 40.60% | 38.50% |
Fixed charge coverage | 4.50% | 4.00% |
Maximum | ||
Debt Instrument [Line Items] | ||
Covenant, Total leverage | 60.00% | |
Covenant, Secured leverage | 30.00% | |
Covenant, Unencumbered leverage | 60.00% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Covenant, Fixed charge coverage | 1.50% |
Summary of Outstanding Mortgage
Summary of Outstanding Mortgages, Excluding Net Debt Premium (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | |||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 59,738 | ||
Less net financing fees | [1] | (505) | ||
Plus net debt premium | [1] | 154 | ||
Total mortgages notes payable, non-recourse to us, net | 59,387 | [1] | $ 60,744 | |
700 Shadow Lane and Goldring MOBs Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 5,492 | ||
Interest Rate | 4.54% | |||
Maturity Date | 2022-06 | |||
BRB Medical Office Building Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 5,560 | ||
Interest Rate | 4.27% | |||
Maturity Date | 2022-12 | |||
Desert Valley Medical Center Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 4,549 | ||
Interest Rate | 3.62% | |||
Maturity Date | 2023-01 | |||
2704 North Tenaya Way Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 6,615 | ||
Interest Rate | 4.95% | |||
Maturity Date | 2023-11 | |||
Summerlin Hospital Medical Office Building III Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 13,101 | ||
Interest Rate | 4.03% | |||
Maturity Date | 2024-04 | |||
Tuscan Professional Building Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 3,076 | ||
Interest Rate | 5.56% | |||
Maturity Date | 2025-06 | |||
Phoenix Children’s East Valley Care Center Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 8,780 | ||
Interest Rate | 3.95% | |||
Maturity Date | 2030-01 | |||
Rosenberg Children's Medical Plaza Fixed Rate Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | [1] | $ 12,565 | ||
Interest Rate | 4.42% | |||
Maturity Date | 2033-09 | |||
[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) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |