Healthcare Realty Trust 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	HEALTHCARE REALTY TRUST INC
Entity Central Index Key	899,749
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		104,813,383

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Real estate properties:
Land	$ 201,157	$ 198,585
Buildings, improvements and lease intangibles	3,181,748	3,135,893
Personal property	9,881	9,954
Construction in progress	31,669	19,024
Land held for development	17,434	17,452
Real estate properties, Total	3,441,889	3,380,908
Less accumulated depreciation and amortization	(790,819)	(761,926)
Total real estate properties, net	2,651,070	2,618,982
Cash and cash equivalents	2,174	4,102
Assets held for sale and discontinued operations, net	706	724
Other assets, net	187,665	186,416
Total assets	2,841,615	2,810,224
Liabilities:
Notes and bonds payable	1,418,347	1,424,992
Accounts payable and accrued liabilities	66,013	75,489
Liabilities of discontinued operations	20	33
Other liabilities	64,236	66,963
Total liabilities	$ 1,548,616	$ 1,567,477
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 50,000 shares authorized; none issued and outstanding	$ 0	$ 0
Common stock, $.01 par value; 150,000 shares authorized; 104,249 and 101,517 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	1,042	1,015
Additional paid-in capital	2,533,130	2,461,376
Accumulated other comprehensive loss	(1,527)	(1,569)
Cumulative net income attributable to common stockholders	918,841	909,685
Cumulative dividends	(2,158,487)	(2,127,760)
Total stockholders' equity	1,292,999	1,242,747
Total liabilities and stockholders' equity	$ 2,841,615	$ 2,810,224

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	50,000,000	50,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	150,000,000	150,000,000
Common stock, issued shares	104,249,000	101,517,000
Common stock, outstanding shares	104,249,000	101,517,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
REVENUES
Rental income	$ 98,740	$ 95,034
Mortgage interest		31
Other operating	1,281	1,391
Revenues	100,021	96,456
EXPENSES
Property operating	35,406	34,263
General and administrative	10,246	6,738
Depreciation	27,693	26,387
Amortization	2,700	2,667
Bad debts, net of recoveries	(39)	(207)
Total Expenses	76,006	69,848
OTHER INCOME (EXPENSE)
Interest expense	(14,938)	(18,322)
Impairment of real estate assets	0	(3,328)
Interest and other income, net	86	91
Total other income (expense)	(14,852)	(21,559)
INCOME FROM CONTINUING OPERATIONS	9,163	5,049
DISCONTINUED OPERATIONS
Income (loss) from discontinued operations	(7)	333
INCOME (LOSS) FROM DISCONTINUED OPERATIONS	(7)	333
NET INCOME	$ 9,156	$ 5,382
BASIC EARNINGS PER COMMON SHARE:
Income from continuing operations (in dollars per share)	$ 0.09	$ 0.05
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	0.09	0.05
DILUTED EARNINGS PER COMMON SHARE:
Income from continuing operations (in dollars per share)	0.09	0.05
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	$ 0.09	$ 0.05
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC (in shares)	101,432,088	98,359,958
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED (in shares)	102,164,818	99,136,897
DIVIDENDS DECLARED, PER COMMON SHARE, DURING THE PERIOD (in dollars per share)	$ 0.30	$ 0.30

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 9,156	$ 5,382
Forward starting interest rate swaps:
Unrecognized loss on cash flow hedges	0	(723)
Reclassification adjustment for losses included in net income (Interest expense)	42	0
Total other comprehensive income (loss)	42	(723)
COMPREHENSIVE INCOME	$ 9,198	$ 4,659

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES
Net income	$ 9,156	$ 5,382
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	31,211	30,214
Stock-based compensation	1,948	1,617
Straight-line rent receivable	(2,132)	(2,858)
Straight-line rent liability	184	195
Impairments of real estate properties	0	3,328
Provision for bad debts, net	(39)	(208)
Changes in operating assets and liabilities:
Other assets	76	(2,914)
Accounts payable and accrued liabilities	(14,267)	(18,989)
Other liabilities	(2,550)	1,337
Net cash provided by operating activities	23,587	17,104
INVESTING ACTIVITIES
Acquisitions of real estate	(37,953)	(37,139)
Development of real estate	(7,995)	(4,320)
Additional long-lived assets	(10,835)	(11,161)
Proceeds from mortgages and notes receivable repayments	5	5
Net cash used in investing activities	(56,778)	(52,615)
FINANCING ACTIVITIES
Net borrowings (repayments) on unsecured credit facility	(7,000)	57,000
Borrowings on notes and bonds payable	11,500
Repayments on notes and bonds payable	(11,317)	(16,468)
Dividends paid	(30,727)	(29,832)
Net proceeds from issuance of common stock	70,181	31,910
Common stock redemptions	(1,264)	(201)
Debt issuance and assumption costs	(110)
Net cash provided by financing activities	31,263	42,409
Increase (decrease) in cash and cash equivalents	(1,928)	6,898
Cash and cash equivalents, beginning of period	4,102	3,519
Cash and cash equivalents, end of period	2,174	10,417
Supplemental Cash Flow Information:
Interest paid	15,151	25,313
Invoices accrued for construction, tenant improvement and other capitalized costs	16,177	$ 4,247
Capitalized interest	$ 179

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Business Overview Healthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust ("REIT") that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of March 31, 2016 , the Company had investments of approximately $3.4 billion in 199 real estate properties located in 30 states totaling approximately 14.3 million square feet. The Company provided leasing and property management services to approximately 9.9 million square feet nationwide. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2015 . All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2016 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties. Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates. New Accounting Pronouncements Accounting Standards Update No. 2014-09 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers", a comprehensive new revenue recognition standard that supersedes most existing revenue recognition guidance, including sales of real estate. This standard's core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company's revenues, are not within the scope of the new standard and will continue to be accounted for under other standards. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606); Deferral of the Effective Date." This standard is effective for the Company for annual and interim periods beginning after December 15, 2017 with early adoption permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. The Company is currently evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2015-03 In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard required debt issuance costs to be reported in the balance sheet as a direct reduction from the face amount of the note to which it is directly related. In August 2015, the FASB issued ASU No. 2015-15, "Interest - Imputation of Interest," which allowed entities to defer and present debt issuance costs related to line-of-credit arrangements as assets regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this standard as of January 1, 2016. As a result of the adoption all deferred financing costs, excluding costs related to the unsecured revolving credit facility, were reclassified to Notes and bonds payable. Unsecured revolving credit facility costs remain classified as an asset and will continue to be amortized over the remaining term. The guidance requires retrospective adoption for all prior periods presented. The following table represents the previously reported balances and reclassified balances for the impacted line items of the Consolidated Balance Sheets as of December 31, 2015 : December 31, 2015 (in thousands) As Previously Reported As Reclassified Other Assets, net $ 192,918 $ 186,416 Total assets $ 2,816,726 $ 2,810,224 Notes and bonds payable $ 1,431,494 $ 1,424,992 Total liabilities $ 1,573,979 $ 1,567,477 Total liabilities and stockholders' equity $ 2,816,726 $ 2,810,224 Accounting Standards Update No. 2015-16 In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." This standard requires adjustments to provisional amounts that are identified during the measurement period after a business combination to be recognized in the reporting period in which the adjustment amounts are determined. The adjustments recognized in the current period include the effects on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The Company adopted this standard effective as of January 1, 2016. The adoption of this standard had no impact on the Company's consolidated financial position or cash flows. Accounting Standards Update No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, "Leases." For lessees, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For lessors, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn't convey risks and rewards or control, an operating lease results. The new standards is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2016-09 In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation; Improvements to Employee Share-Based Payment Accounting." This update was issued as part of the simplification initiative. The areas of simplification relevant to the Company include the following: • Forfeitures - an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. • Minimum statutory tax withholding requirements - the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdiction. • Classification of employee taxes paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes - cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. This standard is effective for the Company for annual and interim periods beginning on January 1, 2017 with early adoption permitted. The Company adopted this standard effective January 1, 2016. There was no impact to the Company's Condensed Consolidated Financial Statements resulting from the adoption of this standard.

Real Estate Investments

Real Estate Investments	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Real Estate Investments	Real Estate Investments 2016 Acquisitions First Quarter In March 2016, the Company acquired a 69,712 square foot medical office building in Seattle, Washington for a purchase price of $38.3 million , including cash consideration of $37.7 million and purchase price credits of $0.6 million . In addition, the Company expensed $1.6 million of acquisition costs related to credits to the seller for loan prepayment, broker's commission and excise taxes. The property is adjacent (as defined in Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources beginning on page 15) to UW Medicine's Northwest Hospital and Medical Center campus, a 281 -bed general medical and surgical hospital. Upon acquisition, the building was 100% leased. Subsequent Acquisition In April 2016, the Company acquired a 46,637 square foot medical office building in Seattle, Washington for a purchase price of $21.6 million . The transaction includes cash consideration of $18.4 million , purchase price credits of $1.9 million and capital obligations of $1.3 million . In addition, the Company capitalized closing costs of $0.4 million . The property is located on UW Medicine's Valley Medical Center campus, a 321 -bed general medical and surgical hospital. Upon acquisition, the building was 100% leased to the seller. This transaction was accounted for as an asset acquisition. Assets Held for Sale At March 31, 2016 and December 31, 2015 , the Company had one on-campus medical office building classified as held for sale. The table below reflects the assets and liabilities of the property classified as held for sale as of March 31, 2016 and December 31, 2015 . (Dollars in thousands) March 31, December 31, Balance Sheet data: Land $ 422 $ 422 Buildings, improvements and lease intangibles 1,350 1,350 1,772 1,772 Accumulated depreciation (1,070 ) (1,070 ) Assets held for sale, net 702 702 Other assets, net (including receivables) 4 22 Assets of discontinued operations, net 4 22 Assets held for sale and discontinued operations, net $ 706 $ 724 Accounts payable and accrued liabilities $ 18 $ 28 Other liabilities 2 5 Liabilities of discontinued operations $ 20 $ 33 Discontinued Operations The following table represents the results of operations of the properties included in discontinued operations on the Company's Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, (Dollars in thousands) 2016 2015 Statements of Income data: Revenues Rental income $ — $ 341 — 341 Expenses Property operating 7 29 Bad debts, net of recoveries — (1 ) 7 28 Other Income (Expense) Interest and other income, net — 20 — 20 Discontinued Operations Income (Loss) from discontinued operations (7 ) 333 Income (Loss) from Discontinued Operations $ (7 ) $ 333

Notes and Bonds Payable

Notes and Bonds Payable	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Notes and Bonds Payable	Notes and Bonds Payable The table below details the Company’s notes and bonds payable. Maturity Dates Balance as of Effective Interest Rate as of (Dollars in thousands) March 31, 2016 December 31, 2015 March 31, 2016 Unsecured Credit Facility 4/17 $ 199,000 $ 206,000 1.58 % Unsecured Term Loan Facility, net 2/19 199,315 199,257 1.64 % Senior Notes due 2021, net of discount and issuance costs 1/21 396,652 396,489 5.97 % Senior Notes due 2023, net of discount and issuance costs 4/23 246,996 246,897 3.95 % Senior Notes due 2025, net of discount and issuance costs 5/25 247,655 247,602 4.08 % Mortgage notes payable, net of discounts and issuance costs and including premiums 8/16-5/40 128,729 128,747 5.25 % $ 1,418,347 $ 1,424,992 2016 Activity First Quarter On January 5, 2016, the Company refinanced a mortgage note payable of $11.5 million bearing interest at a rate of 3.60% that encumbers a 90,607 square foot medical office building and garage located in California. The Company repaid in full the previous mortgage note payable bearing an interest rate of 5.49% with outstanding principal of $11.4 million on December 31, 2015. On February 11, 2016, the Company repaid in full a mortgage note payable bearing interest at a rate of 5.86% with outstanding principal of $10.2 million . The mortgage note encumbered a 90,633 square foot medical office building located in North Carolina. Subsequent Activity On April 29, 2016, the Company repaid in full a mortgage note payable bearing interest at a rate of 5.99% with outstanding principal of $7.3 million . The mortgage note encumbered a 42,957 square foot medical office building located in Virginia. The Company expects to repay two additional mortgage notes payable totaling $16.1 million with a weighted average interest rate of 6.04% during 2016 .

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Risk Management Objective of Using Derivatives In addition to operational risks which arise in the normal course of business, the Company is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, the Company may enter into derivative financial instruments such as interest rate swap and interest rate cap agreements to manage interest rate risk exposure arising from variable rate debt transactions that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's objective in using interest rate derivatives is to manage its exposure to interest rate movements on its variable rate debt. Cash Flow Hedges of Interest Rate Risk Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without changing the underlying notional amount. As of March 31, 2016, the Company did not have any outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk. The effective portion of changes in the fair value of derivatives designated as, and that qualify as, cash flow hedges is recorded in accumulated other comprehensive income or loss (“OCI”) and is reclassified into earnings as interest expense in the period that the hedged forecasted transaction affects earnings. The effective portion of the Company’s interest rate swaps that was recorded in the accompanying Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and March 31, 2015 respectively, was as follows: (Dollars in thousands) Three Months Ended March 31, 2016 2015 Amount of gain (loss) recognized in OCI on derivative (effective portion) $ — $ — Amount of gain (loss) reclassified from accumulated OCI into Interest Expense (effective portion) $ (42 ) $ — Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ — $ — The Company estimates that an additional $0.2 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Redevelopment Activity The Company is in the process of redeveloping two medical office buildings in Tennessee, including a 70,000 square foot expansion. The Company spent approximately $32.6 million on the redevelopment of these properties through March 31, 2016 , including the acquisition of a land parcel for $4.3 million on which the Company is building a parking garage. The total redevelopment budget for these properties is $51.8 million and the project is expected to be completed in the first quarter of 2017. The Company completed the redevelopment of a medical office building in Alabama, which included the construction of a parking garage. Construction of the garage was completed in the fourth quarter of 2015. The total redevelopment budget is $15.4 million , of which $10.7 million has been spent as of March 31, 2016 . The remaining $4.7 million budgeted for the project is primarily related to a tenant improvement allowance that is expected to be funded in 2016. Development Activity In 2015, the Company began development of a 12,900 square foot retail center in Texas, which is adjacent to two of the Company's existing medical office buildings associated with Baylor Scott & White Health. The total development budget is $5.6 million , of which $4.6 million has been spent as of March 31, 2016 . These amounts include $1.5 million used by the Company to purchase land in 2006 and previously recorded as land held for development. Construction was completed on April 15, 2016 . Tenant build-out is expected to be completed throughout the remainder of 2016. In 2015, the Company began development of a 98,000 square foot medical office building in Colorado. The total development budget is $26.5 million , of which $0.9 million has been spent as of March 31, 2016 . Construction is expected to be completed in the second quarter of 2017. The table below details the Company’s construction activity as of March 31, 2016 . The information included in the table below represents management’s estimates and expectations at March 31, 2016 , which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results. As of March 31, 2016 (Dollars in thousands) Number of Properties Estimated Completion Date Construction in Progress Balance Other Amounts Funded Total Amount Funded Estimated Remaining Fundings Estimated Total Investment Approximate Square Feet Construction Activity Birmingham, AL 1 Q4 2015 (1) $ — $ 10,705 $ 10,705 $ 4,695 $ 15,400 138,000 Austin, TX 1 Q2 2016 4,614 — 4,614 961 5,575 12,900 Nashville, TN 2 Q1 2017 26,185 6,423 32,608 19,192 51,800 294,000 Denver, CO 1 Q2 2017 870 — 870 25,630 26,500 98,000 Total $ 31,669 $ 17,128 $ 48,797 $ 50,478 $ 99,275 542,900 _____ (1) Includes $5.9 million for the addition of a 400 -space parking garage which was completed in November 2015 and $9.5 million in tenant improvement allowances and commissions, a portion of which improvements have not been completed.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity The following table provides a reconciliation of total stockholders' equity for the three months ended March 31, 2016 : (Dollars in thousands, except per share data) Common Additional Accumulated Cumulative Cumulative Total Balance at December 31, 2015 $ 1,015 $ 2,461,376 $ (1,569 ) $ 909,685 $ (2,127,760 ) $ 1,242,747 Issuance of common stock 24 70,202 — — — 70,226 Common stock redemptions — (393 ) — — — (393 ) Stock-based compensation 3 1,945 — — — 1,948 Net income — — — 9,156 — 9,156 Reclassification of loss on forward starting interest rate swaps — — 42 — — 42 Dividends to common stockholders ($0.30 per share) — — — — (30,727 ) (30,727 ) Balance at March 31, 2016 $ 1,042 $ 2,533,130 $ (1,527 ) $ 918,841 $ (2,158,487 ) $ 1,292,999 Common Stock The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2016 and the year ended December 31, 2015: March 31, 2016 December 31, 2015 Balance, beginning of period 101,517,009 98,828,098 Issuance of common stock 2,446,136 2,493,171 Nonvested share-based awards, net 286,328 195,740 Balance, end of period 104,249,473 101,517,009 At-The-Market Equity Offering Program On February 19, 2016, the Company entered into sales agreements with five investment banks to allow sales under its at-the-market equity offering program of up to 10,000,000 shares of common stock. A previous sales agreement with one investment bank was terminated effective February 17, 2016. During the three months ended March 31, 2016 , the Company sold a total of 2,416,837 shares of common stock, including 664,298 shares of common stock under the previous sales agreement. The sales generated $69.7 million in net proceeds at prices ranging from $28.31 to $30.16 per share (weighted average of $29.29 per share). In April 2016, the Company sold 564,410 shares of common stock, generating $17.0 million in net proceeds at prices ranging from $30.11 to $30.82 per share (weighted average of $30.57 per share). The Company has 7,683,051 authorized shares remaining available to be sold under the current sales agreements as of April 29, 2016 . Common Stock Dividends During the three months ended March 31, 2016 , the Company declared and paid common stock dividends totaling $0.30 per share. On May 3, 2016 , the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on May 31, 2016 to stockholders of record on May 16, 2016 . Accumulated Other Comprehensive Income (Loss) The following table represents the changes in balances of each component and the amounts reclassified out of accumulated other comprehensive income (loss) related to the Company during the three months ended March 31, 2016 and 2015 : Forward-starting Interest Rate Swaps Defined Benefit Pension Plan (Dollars in thousands) 2016 2015 2016 2015 Beginning balance $ (1,569 ) $ — $ — $ (2,519 ) Other comprehensive income (loss) before reclassifications — (723 ) — — Amounts reclassified from accumulated other comprehensive loss 42 — — — Net accumulated other comprehensive income (loss) 42 (723 ) — — Ending balance $ (1,527 ) $ (723 ) $ — $ (2,519 ) Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, (Dollars in thousands, except per share data) 2016 2015 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 102,634,273 99,467,804 Nonvested shares (1,202,185 ) (1,107,846 ) Weighted average Common Shares outstanding—Basic 101,432,088 98,359,958 Weighted average Common Shares outstanding—Basic 101,432,088 98,359,958 Dilutive effect of restricted stock 601,509 615,511 Dilutive effect of employee stock purchase plan 131,221 161,428 Weighted average Common Shares outstanding—Diluted 102,164,818 99,136,897 Net Income (Loss) Income from continuing operations $ 9,163 $ 5,049 Discontinued operations (7 ) 333 Net income $ 9,156 $ 5,382 Basic Earnings Per Common Share Income from continuing operations $ 0.09 $ 0.05 Discontinued operations 0.00 0.00 Net income $ 0.09 $ 0.05 Diluted Earnings Per Common Share Income from continuing operations $ 0.09 $ 0.05 Discontinued operations 0.00 0.00 Net income $ 0.09 $ 0.05 Incentive Plans A summary of the activity under the stock-based incentive plans for the three months ended March 31, 2016 and 2015 is included in the table below. Three Months Ended March 31, 2016 2015 Stock-based awards, beginning of period 1,092,262 1,057,732 Granted 300,206 89,068 Vested (65,722 ) (28,386 ) Stock-based awards, end of period 1,326,746 1,118,414 During the three months ended March 31, 2016 and 2015 , the Company withheld 13,878 and 7,282 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested. In addition to the stock-based incentive plans, the Company provides the 2000 Employee Stock Purchase Plan (the "Purchase Plan"). A summary of the activity under the Purchase Plan for the three months ended March 31, 2016 and 2015 is included in the table below. Three Months Ended March 31, 2016 2015 Outstanding and exercisable, beginning of period 340,958 393,902 Granted 198,450 197,640 Exercised (26,689 ) (33,046 ) Forfeited (7,682 ) (20,779 ) Expired (143,082 ) (158,946 ) Outstanding and exercisable, end of period 361,955 378,771

Defined Benefit Pension Plan

Defined Benefit Pension Plan	3 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Pension Plan	Defined Benefit Pension Plan Effective May 5, 2015, the Company terminated its Executive Retirement Plan. In accordance with Section 409A of the Internal Revenue Code, these amounts will be paid no earlier than twelve and no later than twenty-four months following the termination date. The Company expects to pay lump sum amounts to the four plan participants in May 2016. At May 5, 2015, the Company recorded a charge of approximately $5.3 million , inclusive of the acceleration of $2.5 million recorded in accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets that was being amortized resulting in a total benefit obligation of $19.6 million in connection with the termination of the Executive Retirement Plan. The charge includes amounts resulting from assumed additional years of service for two plan participants who have not reached age 65 and payments associated with FICA and other tax obligations. The Company’s chairman and chief executive officer, Mr. David Emery, is the only named executive officer that was a participant under the plan. As a result of the termination of the plan, Mr. Emery will receive a lump sum amount equal to his accrued benefit under the plan of approximately $14.4 million in May 2016. The preceding summary is qualified in its entirety by the full text of the Termination Amendment and, in the event of any discrepancy, the text of the Termination Amendment shall control. Net periodic benefit cost recorded related to the Company’s pension plan for the three months ended March 31, 2016 and 2015 is detailed in the following table. Three Months Ended March 31, (Dollars in thousands) 2016 2015 Service cost $ — $ 21 Interest cost — 169 Amortization of net loss — (149 ) Amortization of prior service cost — 258 Total recognized in net periodic benefit cost $ — $ 299

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value. Cash and cash equivalents - The carrying amount approximates fair value. Borrowings under the unsecured credit facility due 2017 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates. Senior unsecured notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. Mortgage notes payable - The fair value is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements. The table below details the fair values and carrying values for notes and bonds payable at March 31, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,418.3 $ 1,453.7 $ 1,425.0 $ 1,439.0 ______ (1) Level 3 - Fair value derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Business Overview	Business Overview Healthcare Realty Trust Incorporated (the “Company”) is a real estate investment trust ("REIT") that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of March 31, 2016 , the Company had investments of approximately $3.4 billion in 199 real estate properties located in 30 states totaling approximately 14.3 million square feet. The Company provided leasing and property management services to approximately 9.9 million square feet nationwide.
Basis of Presentation	Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2015 . All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2016 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties.
Use of Estimates in the Condensed Consolidated Financial Statements	Use of Estimates in the Condensed Consolidated Financial Statements Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.
New Accounting Pronouncements	New Accounting Pronouncements Accounting Standards Update No. 2014-09 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers", a comprehensive new revenue recognition standard that supersedes most existing revenue recognition guidance, including sales of real estate. This standard's core principle is that a company will recognize revenue when it transfers goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. However, leasing contracts, representing the major source of the Company's revenues, are not within the scope of the new standard and will continue to be accounted for under other standards. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606); Deferral of the Effective Date." This standard is effective for the Company for annual and interim periods beginning after December 15, 2017 with early adoption permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. The Company is currently evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2015-03 In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard required debt issuance costs to be reported in the balance sheet as a direct reduction from the face amount of the note to which it is directly related. In August 2015, the FASB issued ASU No. 2015-15, "Interest - Imputation of Interest," which allowed entities to defer and present debt issuance costs related to line-of-credit arrangements as assets regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this standard as of January 1, 2016. As a result of the adoption all deferred financing costs, excluding costs related to the unsecured revolving credit facility, were reclassified to Notes and bonds payable. Unsecured revolving credit facility costs remain classified as an asset and will continue to be amortized over the remaining term. The guidance requires retrospective adoption for all prior periods presented. The following table represents the previously reported balances and reclassified balances for the impacted line items of the Consolidated Balance Sheets as of December 31, 2015 : December 31, 2015 (in thousands) As Previously Reported As Reclassified Other Assets, net $ 192,918 $ 186,416 Total assets $ 2,816,726 $ 2,810,224 Notes and bonds payable $ 1,431,494 $ 1,424,992 Total liabilities $ 1,573,979 $ 1,567,477 Total liabilities and stockholders' equity $ 2,816,726 $ 2,810,224 Accounting Standards Update No. 2015-16 In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." This standard requires adjustments to provisional amounts that are identified during the measurement period after a business combination to be recognized in the reporting period in which the adjustment amounts are determined. The adjustments recognized in the current period include the effects on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The Company adopted this standard effective as of January 1, 2016. The adoption of this standard had no impact on the Company's consolidated financial position or cash flows. Accounting Standards Update No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, "Leases." For lessees, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For lessors, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn't convey risks and rewards or control, an operating lease results. The new standards is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2016-09 In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation; Improvements to Employee Share-Based Payment Accounting." This update was issued as part of the simplification initiative. The areas of simplification relevant to the Company include the following: • Forfeitures - an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. • Minimum statutory tax withholding requirements - the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdiction. • Classification of employee taxes paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes - cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. This standard is effective for the Company for annual and interim periods beginning on January 1, 2017 with early adoption permitted. The Company adopted this standard effective January 1, 2016. There was no impact to the Company's Condensed Consolidated Financial Statements resulting from the adoption of this standard.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Schedule of Previously Reported and Reclassified Balances	The following table represents the previously reported balances and reclassified balances for the impacted line items of the Consolidated Balance Sheets as of December 31, 2015 : December 31, 2015 (in thousands) As Previously Reported As Reclassified Other Assets, net $ 192,918 $ 186,416 Total assets $ 2,816,726 $ 2,810,224 Notes and bonds payable $ 1,431,494 $ 1,424,992 Total liabilities $ 1,573,979 $ 1,567,477 Total liabilities and stockholders' equity $ 2,816,726 $ 2,810,224

Real Estate Investments (Tables

Real Estate Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Discontinued Operations and Assets Held for Sale	Assets Held for Sale At March 31, 2016 and December 31, 2015 , the Company had one on-campus medical office building classified as held for sale. The table below reflects the assets and liabilities of the property classified as held for sale as of March 31, 2016 and December 31, 2015 . (Dollars in thousands) March 31, December 31, Balance Sheet data: Land $ 422 $ 422 Buildings, improvements and lease intangibles 1,350 1,350 1,772 1,772 Accumulated depreciation (1,070 ) (1,070 ) Assets held for sale, net 702 702 Other assets, net (including receivables) 4 22 Assets of discontinued operations, net 4 22 Assets held for sale and discontinued operations, net $ 706 $ 724 Accounts payable and accrued liabilities $ 18 $ 28 Other liabilities 2 5 Liabilities of discontinued operations $ 20 $ 33 Discontinued Operations The following table represents the results of operations of the properties included in discontinued operations on the Company's Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, (Dollars in thousands) 2016 2015 Statements of Income data: Revenues Rental income $ — $ 341 — 341 Expenses Property operating 7 29 Bad debts, net of recoveries — (1 ) 7 28 Other Income (Expense) Interest and other income, net — 20 — 20 Discontinued Operations Income (Loss) from discontinued operations (7 ) 333 Income (Loss) from Discontinued Operations $ (7 ) $ 333

Notes and Bonds Payable (Tables

Notes and Bonds Payable (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Debt	The table below details the Company’s notes and bonds payable. Maturity Dates Balance as of Effective Interest Rate as of (Dollars in thousands) March 31, 2016 December 31, 2015 March 31, 2016 Unsecured Credit Facility 4/17 $ 199,000 $ 206,000 1.58 % Unsecured Term Loan Facility, net 2/19 199,315 199,257 1.64 % Senior Notes due 2021, net of discount and issuance costs 1/21 396,652 396,489 5.97 % Senior Notes due 2023, net of discount and issuance costs 4/23 246,996 246,897 3.95 % Senior Notes due 2025, net of discount and issuance costs 5/25 247,655 247,602 4.08 % Mortgage notes payable, net of discounts and issuance costs and including premiums 8/16-5/40 128,729 128,747 5.25 % $ 1,418,347 $ 1,424,992

Derivative Financial Instrume19

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)	The effective portion of the Company’s interest rate swaps that was recorded in the accompanying Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and March 31, 2015 respectively, was as follows: (Dollars in thousands) Three Months Ended March 31, 2016 2015 Amount of gain (loss) recognized in OCI on derivative (effective portion) $ — $ — Amount of gain (loss) reclassified from accumulated OCI into Interest Expense (effective portion) $ (42 ) $ — Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Construction Activity	The table below details the Company’s construction activity as of March 31, 2016 . The information included in the table below represents management’s estimates and expectations at March 31, 2016 , which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results. As of March 31, 2016 (Dollars in thousands) Number of Properties Estimated Completion Date Construction in Progress Balance Other Amounts Funded Total Amount Funded Estimated Remaining Fundings Estimated Total Investment Approximate Square Feet Construction Activity Birmingham, AL 1 Q4 2015 (1) $ — $ 10,705 $ 10,705 $ 4,695 $ 15,400 138,000 Austin, TX 1 Q2 2016 4,614 — 4,614 961 5,575 12,900 Nashville, TN 2 Q1 2017 26,185 6,423 32,608 19,192 51,800 294,000 Denver, CO 1 Q2 2017 870 — 870 25,630 26,500 98,000 Total $ 31,669 $ 17,128 $ 48,797 $ 50,478 $ 99,275 542,900

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Reconciliation of total equity	The following table provides a reconciliation of total stockholders' equity for the three months ended March 31, 2016 : (Dollars in thousands, except per share data) Common Additional Accumulated Cumulative Cumulative Total Balance at December 31, 2015 $ 1,015 $ 2,461,376 $ (1,569 ) $ 909,685 $ (2,127,760 ) $ 1,242,747 Issuance of common stock 24 70,202 — — — 70,226 Common stock redemptions — (393 ) — — — (393 ) Stock-based compensation 3 1,945 — — — 1,948 Net income — — — 9,156 — 9,156 Reclassification of loss on forward starting interest rate swaps — — 42 — — 42 Dividends to common stockholders ($0.30 per share) — — — — (30,727 ) (30,727 ) Balance at March 31, 2016 $ 1,042 $ 2,533,130 $ (1,527 ) $ 918,841 $ (2,158,487 ) $ 1,292,999
Reconciliation of beginning and ending common stock outstanding	Common Stock The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2016 and the year ended December 31, 2015: March 31, 2016 December 31, 2015 Balance, beginning of period 101,517,009 98,828,098 Issuance of common stock 2,446,136 2,493,171 Nonvested share-based awards, net 286,328 195,740 Balance, end of period 104,249,473 101,517,009
Schedule of accumulated other comprehensive income (loss)	The following table represents the changes in balances of each component and the amounts reclassified out of accumulated other comprehensive income (loss) related to the Company during the three months ended March 31, 2016 and 2015 : Forward-starting Interest Rate Swaps Defined Benefit Pension Plan (Dollars in thousands) 2016 2015 2016 2015 Beginning balance $ (1,569 ) $ — $ — $ (2,519 ) Other comprehensive income (loss) before reclassifications — (723 ) — — Amounts reclassified from accumulated other comprehensive loss 42 — — — Net accumulated other comprehensive income (loss) 42 (723 ) — — Ending balance $ (1,527 ) $ (723 ) $ — $ (2,519 )
Earnings (loss) per share	Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, (Dollars in thousands, except per share data) 2016 2015 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 102,634,273 99,467,804 Nonvested shares (1,202,185 ) (1,107,846 ) Weighted average Common Shares outstanding—Basic 101,432,088 98,359,958 Weighted average Common Shares outstanding—Basic 101,432,088 98,359,958 Dilutive effect of restricted stock 601,509 615,511 Dilutive effect of employee stock purchase plan 131,221 161,428 Weighted average Common Shares outstanding—Diluted 102,164,818 99,136,897 Net Income (Loss) Income from continuing operations $ 9,163 $ 5,049 Discontinued operations (7 ) 333 Net income $ 9,156 $ 5,382 Basic Earnings Per Common Share Income from continuing operations $ 0.09 $ 0.05 Discontinued operations 0.00 0.00 Net income $ 0.09 $ 0.05 Diluted Earnings Per Common Share Income from continuing operations $ 0.09 $ 0.05 Discontinued operations 0.00 0.00 Net income $ 0.09 $ 0.05
Summary of the activity under the Incentive Plan	A summary of the activity under the stock-based incentive plans for the three months ended March 31, 2016 and 2015 is included in the table below. Three Months Ended March 31, 2016 2015 Stock-based awards, beginning of period 1,092,262 1,057,732 Granted 300,206 89,068 Vested (65,722 ) (28,386 ) Stock-based awards, end of period 1,326,746 1,118,414
Summary of employee stock purchase plan activity	A summary of the activity under the Purchase Plan for the three months ended March 31, 2016 and 2015 is included in the table below. Three Months Ended March 31, 2016 2015 Outstanding and exercisable, beginning of period 340,958 393,902 Granted 198,450 197,640 Exercised (26,689 ) (33,046 ) Forfeited (7,682 ) (20,779 ) Expired (143,082 ) (158,946 ) Outstanding and exercisable, end of period 361,955 378,771

Defined Benefit Pension Plan (T

Defined Benefit Pension Plan (Tables)	3 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Net periodic benefit cost recorded related to the Company's pension plans	Net periodic benefit cost recorded related to the Company’s pension plan for the three months ended March 31, 2016 and 2015 is detailed in the following table. Three Months Ended March 31, (Dollars in thousands) 2016 2015 Service cost $ — $ 21 Interest cost — 169 Amortization of net loss — (149 ) Amortization of prior service cost — 258 Total recognized in net periodic benefit cost $ — $ 299

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair value and carrying values for notes and bonds payable, mortgage notes receivable, and notes receivable	The table below details the fair values and carrying values for notes and bonds payable at March 31, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,418.3 $ 1,453.7 $ 1,425.0 $ 1,439.0 ______ (1) Level 3 - Fair value derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details) ft² in Millions, $ in Billions	Mar. 31, 2016USD ($)ft²stateproperty
Business Overview:
Gross investment amount, total | $	$ 3.4
Number of real estate properties | property	199
Number of states that the Company owns real estate in, whole units | state	30
Square footage of owned real estate properties	14.3
Approximate square feet for which Nationwide property management services provided by company	9.9

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Debt Issuance Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Other assets, net	$ 187,665	$ 186,416
Assets	2,841,615	2,810,224
Notes and bonds payable	1,418,347	1,424,992
Liabilities	1,548,616	1,567,477
Liabilities and Equity	$ 2,841,615	2,810,224
As Previously Reported [Member]
Debt Instrument [Line Items]
Other assets, net		192,918
Assets		2,816,726
Notes and bonds payable		1,431,494
Liabilities		1,573,979
Liabilities and Equity		$ 2,816,726

Real Estate Investments - Acqui

Real Estate Investments - Acquisitions (Details) - Washington [Member] - Real Estate Acquisitions [Member] $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2016USD ($)ft²Bed	Mar. 31, 2016USD ($)ft²Bed
Business Acquisition [Line Items]
Square footage | ft²		69,712
Purchase price		$ 38.3
Cash consideration		37.7
Purchase price credits		0.6
Acquisition Costs, Period Cost		$ 1.6
Number of Beds | Bed		281
Percentage of property leased		100.00%
Subsequent Event [Member]
Business Acquisition [Line Items]
Square footage | ft²	46,637
Purchase price	$ 21.6
Cash consideration	18.4
Purchase price credits	$ 1.9
Number of Beds | Bed	321
Percentage of property leased	100.00%
Capital obligations	$ 1.3
Closing costs	$ 0.4

Real Estate Investments - Asset

Real Estate Investments - Assets Held for Sale (Details)	Mar. 31, 2016property
Business Combinations [Abstract]
Number of properties held for sale	1

Real Estate Investments - Disco

Real Estate Investments - Discontinued Operations and Assets Held for Sale - Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Balance Sheet data (as of the period ended):
Land	$ 201,157	$ 198,585
Buildings, improvements and lease intangibles	3,181,748	3,135,893
Real estate properties, Total	3,441,889	3,380,908
Accumulated depreciation	(790,819)	(761,926)
Total real estate properties, net	2,651,070	2,618,982
Other assets, net (including receivables)	187,665	186,416
Assets held for sale and discontinued operations, net	706	724
Liabilities of discontinued operations	20	33
Discontinued Operations [Member]
Balance Sheet data (as of the period ended):
Land	422	422
Buildings, improvements and lease intangibles	1,350	1,350
Real estate properties, Total	1,772	1,772
Accumulated depreciation	(1,070)	(1,070)
Total real estate properties, net	702	702
Other assets, net (including receivables)	4	22
Assets of discontinued operations, net	4	22
Assets held for sale and discontinued operations, net	706	724
Accounts payable and accrued liabilities	18	28
Other liabilities	2	5
Liabilities of discontinued operations	$ 20	$ 33

Real Estate Investments - Dis29

Real Estate Investments - Discontinued Operations and Assets Held for Sale - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Rental income	$ 98,740	$ 95,034
Expenses
Property operating	35,406	34,263
Bad debts, net of recoveries	(39)	(207)
Other Income (Expense)
Interest and other income, net	86	91
Discontinued Operations
Income from discontinued operations	(7)	333
INCOME (LOSS) FROM DISCONTINUED OPERATIONS	(7)	333
Discontinued Operations [Member]
Revenues
Rental income	0	341
Revenues	0	341
Expenses
Property operating	7	29
Bad debts, net of recoveries	0	(1)
Total Expenses	7	28
Other Income (Expense)
Interest and other income, net	0	20
Total other income (expense)	0	20
Discontinued Operations
Income from discontinued operations	(7)	333
INCOME (LOSS) FROM DISCONTINUED OPERATIONS	$ (7)	$ 333

Notes and Bonds Payable (Detail

Notes and Bonds Payable (Details) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Apr. 30, 2016USD ($)	Mar. 31, 2016USD ($)ft²	Dec. 31, 2016USD ($)mortgage_note_payable	Dec. 31, 2015USD ($)	Apr. 29, 2016ft²	Feb. 11, 2016ft²
Debt Instrument [Line Items]
Long-term Debt		$ 1,418,347		$ 1,424,992
Square footage of owned real estate properties | ft²		14,300,000
CALIFORNIA | Mortgage Note Financing [Member]
Debt Instrument [Line Items]
Secured Debt		$ 11,500
Stated interest rate (percent)		3.60%
Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 199,000		206,000
Effective interest rate (percent)		1.58%
Medium-term Notes [Member] | Term Loan Due 2019 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 199,315		199,257
Effective interest rate (percent)		1.64%
Senior Notes [Member] | Senior Notes due 2021, net of discount and issuance costs [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 396,652		396,489
Effective interest rate (percent)		5.97%
Senior Notes [Member] | Senior Notes due 2023, net of discount and issuance costs [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 246,996		246,897
Effective interest rate (percent)		3.95%
Senior Notes [Member] | Senior Notes due 2025, net of discount and issuance costs [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 247,655		247,602
Effective interest rate (percent)		4.08%
Senior Notes [Member] | Medical Office Building [Member] | 3.60% Secured Note [Member] [Member]
Debt Instrument [Line Items]
Square footage of owned real estate properties | ft²		90,607
Mortgages [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 128,729		$ 128,747
Effective interest rate (percent)		5.25%
Mortgages [Member] | 5.49% Secured Note [Member]
Debt Instrument [Line Items]
Stated interest rate (percent)				5.49%
Amount of debt repaid				$ 11,400
Mortgages [Member] | 5.86% Secured Note [Member]
Debt Instrument [Line Items]
Stated interest rate (percent)						5.86%
Amount of debt repaid		$ 10,200
Mortgages [Member] | Medical Office Building [Member] | 5.86% Secured Note [Member]
Debt Instrument [Line Items]
Square footage of owned real estate properties | ft²						90,633
Subsequent Event [Member] | Mortgages [Member] | 5.99% Secured Note [Member]
Debt Instrument [Line Items]
Stated interest rate (percent)					5.99%
Amount of debt repaid	$ 7,300
Subsequent Event [Member] | Mortgages [Member] | Medical Office Building [Member] | 5.99% Secured Note [Member]
Debt Instrument [Line Items]
Square footage of owned real estate properties | ft²					42,957
Scenario, Forecast [Member]
Debt Instrument [Line Items]
Number of outstanding mortgage notes to be repaid | mortgage_note_payable			2
Scenario, Forecast [Member] | Mortgages [Member] | Mortgage Notes 6.04% [Member]
Debt Instrument [Line Items]
Stated interest rate (percent)			6.04%
Amount of debt repaid			$ 16,100

Derivative Financial Instrume31

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months	$ (200)
Interest Rate Swap [Member]
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivative (effective portion)	0	$ 0
Interest Expense [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Amount of gain or (loss) reclassified from accumulated OCI into Interest Expense (effective portion)	(42)	0
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Construction Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)ft²parking_spaceproperty	Dec. 31, 2015USD ($)	Sep. 30, 2015ft²	Dec. 31, 2006USD ($)
Other Commitments [Line Items]
Approximate Square Feet | ft²	14,300,000
Land held for redevelopment	$ 17,434	$ 17,452
ALABAMA
Other Commitments [Line Items]
Total Amount Funded	10,700
Estimated Remaining Fundings	4,700
Estimated Total Investment	$ 15,400
TEXAS
Other Commitments [Line Items]
Number of Properties | property	2
TENNESSEE
Other Commitments [Line Items]
Number of Properties | property	2
Total Amount Funded	$ 32,600
Estimated Total Investment	51,800
Land held for redevelopment	$ 4,300
Medical Office Building Expansion [Member] | TENNESSEE
Other Commitments [Line Items]
Approximate Square Feet | ft²	70,000
Retail Site [Member] | TEXAS
Other Commitments [Line Items]
Number of Properties | property	1
Construction in Progress, Gross	$ 4,614
Other Amounts Funded	0
Total Amount Funded	4,614
Estimated Remaining Fundings	961
Estimated Total Investment	$ 5,575
Approximate Square Feet | ft²	12,900		12,900
Land held for redevelopment				$ 1,500
Medical Office Building [Member] | ALABAMA
Other Commitments [Line Items]
Number of Properties | property	1
Construction in Progress, Gross	$ 0
Other Amounts Funded	10,705
Total Amount Funded	10,705
Estimated Remaining Fundings	4,695
Estimated Total Investment	$ 15,400
Approximate Square Feet | ft²	138,000
Medical Office Building [Member] | TENNESSEE
Other Commitments [Line Items]
Number of Properties | property	2
Construction in Progress, Gross	$ 26,185
Other Amounts Funded	6,423
Total Amount Funded	32,608
Estimated Remaining Fundings	19,192
Estimated Total Investment	$ 51,800
Approximate Square Feet | ft²	294,000
Medical Office Building [Member] | COLORADO
Other Commitments [Line Items]
Number of Properties | property	1
Construction in Progress, Gross	$ 870
Other Amounts Funded	0
Total Amount Funded	870
Estimated Remaining Fundings	25,630
Estimated Total Investment	$ 26,500
Approximate Square Feet | ft²	98,000
Medical Office Buildings and Retail Sites [Member]
Other Commitments [Line Items]
Construction in Progress, Gross	$ 31,669
Other Amounts Funded	17,128
Total Amount Funded	48,797
Estimated Remaining Fundings	50,478
Estimated Total Investment	$ 99,275
Approximate Square Feet | ft²	542,900
Tenant Improvement Allowances [Member] | Medical Office Building [Member] | ALABAMA
Other Commitments [Line Items]
Estimated Total Investment	$ 9,500
812930 Parking Lots and Garages [Member] | Medical Office Building [Member] | ALABAMA
Other Commitments [Line Items]
Estimated Total Investment	$ 5,900
Number of parking spaces | parking_space	400

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of total stockholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Increase (Decrease) in Stockholders' Equity [Rollforward]
Net income	$ 9,156	$ 5,382
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Rollforward]
Balance at December 31, 2015	1,015
Issuance of common stock	24
Common stock redemptions	0
Stock-based compensation	3
Net income	0
Reclassification of loss on forward starting interest rate swaps	0
Dividends to common stockholders ($0.30 per share)	0
Balance at March 31, 2016	1,042
Additional Paid-In Capital [Member]
Increase (Decrease) in Stockholders' Equity [Rollforward]
Balance at December 31, 2015	2,461,376
Issuance of common stock	70,202
Common stock redemptions	(393)
Stock-based compensation	1,945
Net income	0
Reclassification of loss on forward starting interest rate swaps	0
Dividends to common stockholders ($0.30 per share)	0
Balance at March 31, 2016	2,533,130
Accumulated Other Comprehensive Loss [Member]
Increase (Decrease) in Stockholders' Equity [Rollforward]
Balance at December 31, 2015	(1,569)
Issuance of common stock	0
Common stock redemptions	0
Stock-based compensation	0
Net income	0
Reclassification of loss on forward starting interest rate swaps	42
Dividends to common stockholders ($0.30 per share)	0
Balance at March 31, 2016	(1,527)
Cumulative Net Income Attributable to Common Stockholders [Member]
Increase (Decrease) in Stockholders' Equity [Rollforward]
Balance at December 31, 2015	909,685
Issuance of common stock	0
Common stock redemptions	0
Stock-based compensation	0
Net income	9,156
Reclassification of loss on forward starting interest rate swaps	0
Dividends to common stockholders ($0.30 per share)	0
Balance at March 31, 2016	918,841
Cumulative Dividends [Member]
Increase (Decrease) in Stockholders' Equity [Rollforward]
Balance at December 31, 2015	(2,127,760)
Issuance of common stock	0
Common stock redemptions	0
Stock-based compensation	0
Net income	0
Reclassification of loss on forward starting interest rate swaps	0
Dividends to common stockholders ($0.30 per share)	(30,727)
Balance at March 31, 2016	$ (2,158,487)
Dividends per share paid to common stockholders (in dollars per share)	$ 0.30
Total Stockholders' Equity [Member]
Increase (Decrease) in Stockholders' Equity [Rollforward]
Balance at December 31, 2015	$ 1,242,747
Issuance of common stock	70,226
Common stock redemptions	(393)
Stock-based compensation	1,948
Net income	9,156
Reclassification of loss on forward starting interest rate swaps	42
Dividends to common stockholders ($0.30 per share)	(30,727)
Balance at March 31, 2016	$ 1,292,999

Stockholders' Equity - Reconc34

Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of the beginning and ending common stock outstanding
Balance, beginning of period	101,517,000
Balance, end of period	104,249,000
Common Stock [Member]
Reconciliation of the beginning and ending common stock outstanding
Balance, beginning of period	101,517,009	98,828,098
Issuance of common stock	2,446,136	2,493,171
Nonvested share-based awards, net	286,328	195,740
Balance, end of period	104,249,473

Stockholders' Equity (Stock Tra

Stockholders' Equity (Stock Transactions - Narrative) (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2016USD ($)$ / sharesshares	Mar. 31, 2016USD ($)investment_bank$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Apr. 29, 2016shares	Feb. 19, 2016shares	Feb. 17, 2016investment_bank
Class of Stock [Line Items]
Net proceeds from issuance of common stock | $		$ 70,181	$ 31,910
Dividends per share declared to common stockholders (in dollars per share)		$ 0.30	$ 0.30
At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Number of investment banks in sales agreements | investment_bank		5
Shares authorized to be sold under the program | shares					10,000,000
Issuance of common stock (shares) | shares		2,416,837
Net proceeds from issuance of common stock | $		$ 69,700
Previous At the Market Equity Offering Program [Member]
Class of Stock [Line Items]
Number of investment banks in sales agreements | investment_bank						1
Issuance of common stock (shares) | shares			664,298
Subsequent Event [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (shares) | shares	564,410
Net proceeds from issuance of common stock | $	$ 17,000
Number of authorized shares remaining under offering program | shares				7,683,051
Minimum [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (price per share)		$ 28.31
Minimum [Member] | Subsequent Event [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (price per share)	$ 30.11
Maximum [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (price per share)		30.16
Maximum [Member] | Subsequent Event [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (price per share)	30.82
Weighted Average [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (price per share)		$ 29.29
Weighted Average [Member] | Subsequent Event [Member] | At The Market Equity Offering Program [Member]
Class of Stock [Line Items]
Issuance of common stock (price per share)	$ 30.57

Stockholders' Equity - Changes

Stockholders' Equity - Changes in accumulated other comprehensive income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Forward-starting Interest Rate Swaps
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ (1,569)	$ 0
Other comprehensive income (loss) before reclassifications	0	(723)
Amounts reclassified from accumulated other comprehensive loss	42	0
Net accumulated other comprehensive income (loss)	42	(723)
Ending balance	(1,527)	(723)
Defined Benefit Pension Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	0	(2,519)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive loss	0	0
Net accumulated other comprehensive income (loss)	0	0
Ending balance	$ 0	$ (2,519)

Stockholders' Equity - Computat

Stockholders' Equity - Computation of basic and diluted earnings (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Weighted average Common Shares outstanding
Weighted average Common Shares outstanding	102,634,273	99,467,804
Nonvested shares	(1,202,185)	(1,107,846)
Weighted average Common Shares—Basic	101,432,088	98,359,958
Dilutive effect of restricted stock	601,509	615,511
Dilutive effect of employee stock purchase plan	131,221	161,428
Weighted average Common Shares outstanding—Diluted	102,164,818	99,136,897
Net Income (Loss)
Income from continuing operations	$ 9,163	$ 5,049
Discontinued operations	(7)	333
NET INCOME	$ 9,156	$ 5,382
Basic Earnings (Loss) Per Common Share
Income from continuing operations (in dollars per share)	$ 0.09	$ 0.05
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	0.09	0.05
Diluted Earnings (Loss) Per Common Share
Income from continuing operations (in dollars per share)	0.09	0.05
Discontinued operations (in dollars per share)	0	0
Net income (in dollars per share)	$ 0.09	$ 0.05

Stockholders' Equity - Summary

Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock Incentive Plan [Member] - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summary of the activity under the incentive plans
Stock-based awards, beginning of period (shares)	1,092,262	1,057,732
Granted (shares)	300,206	89,068
Vested (shares)	(65,722)	(28,386)
Stock-based awards, end of period (shares)	1,326,746	1,118,414
Restricted Stock [Member]
Summary of the activity under the incentive plans
Shares withheld to pay estimated withholding taxes	13,878	7,282

Stockholders' Equity - Summar39

Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member] - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summary of the Employee Stock Purchase Plan activity
Outstanding and exercisable, beginning of period (shares)	340,958	393,902
Granted (shares)	198,450	197,640
Exercised (shares)	(26,689)	(33,046)
Forfeited (shares)	(7,682)	(20,779)
Expired (shares)	(143,082)	(158,946)
Outstanding and exercisable, end of period (shares)	361,955	378,771

Defined Benefit Pension Plan (D

Defined Benefit Pension Plan (Details) $ in Thousands	1 Months Ended	3 Months Ended
	May. 31, 2016USD ($)	Mar. 31, 2016USD ($)plan_participant	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	May. 05, 2015USD ($)plan_participant
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of plan participants | plan_participant					4
Current period charge			$ 5,300
Total benefit obligation					$ 19,600
Number of plan participants who have not reached age 65 | plan_participant		2
Net periodic benefit cost recorded related to the Company's pension plans
Service cost				$ 21
Interest cost				169
Amortization of net loss				(149)
Amortization of prior service cost				258
Total recognized in net periodic benefit cost		$ 0		$ 299
Chief Executive Officer [Member] | Scenario, Forecast [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Lump sum benefit obligation at termination of plan	$ 14,400
Accumulated Other Comprehensive Income (Loss) [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Current period charge			$ 2,500

Fair Value of Financial Instr41

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Carrying Value [Member]
Derivative [Line Items]
Notes and bonds payable	[1]	$ 1,418.3	$ 1,425
Fair Value [Member]
Derivative [Line Items]
Notes and bonds payable	[1]	$ 1,453.7	$ 1,439
[1]	Level 3 - Fair value derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable.