Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 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 | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 115,862,407 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Real estate properties: | ||
Land | $ 208,386 | $ 198,585 |
Buildings, improvements and lease intangibles | 3,235,744 | 3,135,893 |
Personal property | 10,032 | 9,954 |
Construction in progress | 35,174 | 19,024 |
Land held for development | 17,438 | 17,452 |
Real estate properties, Total | 3,506,774 | 3,380,908 |
Less accumulated depreciation and amortization | (819,744) | (761,926) |
Total real estate properties, net | 2,687,030 | 2,618,982 |
Cash and cash equivalents | 9,026 | 4,102 |
Assets held for sale and discontinued operations, net | 710 | 724 |
Other assets, net | 185,298 | 186,416 |
Total assets | 2,882,064 | 2,810,224 |
Liabilities: | ||
Notes and bonds payable | 1,414,739 | 1,424,992 |
Accounts payable and accrued liabilities | 70,408 | 75,489 |
Liabilities of discontinued operations | 17 | 33 |
Other liabilities | 46,452 | 66,963 |
Total liabilities | 1,531,616 | 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; 106,662 and 101,517 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 1,067 | 1,015 |
Additional paid-in capital | 2,609,880 | 2,461,376 |
Accumulated other comprehensive loss | (1,485) | (1,569) |
Cumulative net income attributable to common stockholders | 930,985 | 909,685 |
Cumulative dividends | (2,189,999) | (2,127,760) |
Total stockholders' equity | 1,350,448 | 1,242,747 |
Total liabilities and stockholders' equity | $ 2,882,064 | $ 2,810,224 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 | 106,662,000 | 101,517,000 |
Common stock, outstanding shares | 106,662,000 | 101,517,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
REVENUES | ||||
Rental income | $ 101,472 | $ 95,450 | $ 200,212 | $ 190,484 |
Mortgage interest | 0 | 31 | 62 | |
Other operating | 1,170 | 1,227 | 2,451 | 2,618 |
Revenues | 102,642 | 96,708 | 202,663 | 193,164 |
EXPENSES | ||||
Property operating | 36,263 | 33,927 | 71,668 | 68,189 |
General and administrative | 8,129 | 6,713 | 18,375 | 13,451 |
Depreciation | 28,528 | 26,552 | 56,221 | 52,940 |
Amortization | 2,762 | 2,474 | 5,463 | 5,142 |
Bad debts, net of recoveries | 78 | 27 | 39 | (181) |
Total Expenses | 75,760 | 69,693 | 151,766 | 139,541 |
OTHER INCOME (EXPENSE) | ||||
Gain on sales of real estate properties | 1 | 41,549 | 1 | 41,549 |
Interest expense | (14,815) | (17,213) | (29,753) | (35,536) |
Loss on extinguishment of debt | 0 | (27,998) | 0 | (27,998) |
Pension termination | (4) | (5,260) | (4) | (5,260) |
Impairment of real estate assets | 0 | 0 | 0 | (3,328) |
Impairment of internally-developed software | 0 | (654) | 0 | (654) |
Interest and other income, net | 93 | 147 | 179 | 239 |
Total other income (expense) | (14,725) | (9,429) | (29,577) | (30,988) |
INCOME FROM CONTINUING OPERATIONS | 12,157 | 17,586 | 21,320 | 22,635 |
DISCONTINUED OPERATIONS | ||||
Income (loss) from discontinued operations | (19) | 330 | (27) | 663 |
Gain on sales of real estate properties | 7 | 0 | 7 | 0 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | (12) | 330 | (20) | 663 |
NET INCOME | $ 12,145 | $ 17,916 | $ 21,300 | $ 23,298 |
BASIC EARNINGS PER COMMON SHARE: | ||||
Income from continuing operations (in dollars per share) | $ 0.12 | $ 0.18 | $ 0.21 | $ 0.23 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Net income (in dollars per share) | 0.12 | 0.18 | 0.21 | 0.24 |
DILUTED EARNINGS PER COMMON SHARE: | ||||
Income from continuing operations (in dollars per share) | 0.12 | 0.18 | 0.21 | 0.23 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | $ 0.12 | $ 0.18 | $ 0.21 | $ 0.23 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC (in shares) | 103,987,749 | 99,273,027 | 102,709,919 | 98,819,015 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED (in shares) | 104,769,545 | 99,945,202 | 103,470,534 | 99,554,095 |
DIVIDENDS DECLARED, PER COMMON SHARE, DURING THE PERIOD (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.6 | $ 0.60 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 12,145 | $ 17,916 | $ 21,300 | $ 23,298 |
Defined benefit plans: | ||||
Reclassification adjustment for losses included in net income (Pension termination) | 0 | 2,519 | 0 | 2,519 |
Forward starting interest rate swaps: | ||||
Unrecognized loss on cash flow hedges | 0 | (961) | 0 | (1,684) |
Reclassification adjustment for losses included in net income (Interest expense) | 42 | 31 | 84 | 31 |
Total other comprehensive income | 42 | 1,589 | 84 | 866 |
COMPREHENSIVE INCOME | $ 12,187 | $ 19,505 | $ 21,384 | $ 24,164 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 21,300 | $ 23,298 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 63,280 | 60,250 |
Stock-based compensation | 3,798 | 3,078 |
Straight-line rent receivable | (4,223) | (5,358) |
Straight-line rent liability | 368 | 389 |
Gain on sales of real estate assets | (8) | (41,606) |
Loss on extinguishment of debt | 27,998 | |
Impairments of real estate properties | 0 | 3,328 |
Pension termination | 0 | 5,260 |
Impairment of internally-developed software | 0 | 654 |
Provision for bad debts, net | 39 | (182) |
Changes in operating assets and liabilities: | ||
Other assets | 3,139 | (3,784) |
Accounts payable and accrued liabilities | (7,927) | (6,424) |
Other liabilities | (20,287) | 891 |
Net cash provided by operating activities | 59,479 | 67,792 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | (63,172) | (43,017) |
Development of real estate | (18,982) | (6,027) |
Additional long-lived assets | (29,286) | (25,584) |
Proceeds from sales of real estate | 0 | 94,463 |
Proceeds from mortgages and notes receivable repayments | 9 | 9 |
Net cash (used in) provided by investing activities | (111,431) | 19,844 |
FINANCING ACTIVITIES | ||
Net borrowings (repayments) on unsecured credit facility | (16,000) | 73,000 |
Borrowings on notes and bonds payable | 11,500 | 249,793 |
Repayments on notes and bonds payable | (19,963) | (48,438) |
Redemption of notes and bonds payable | (333,222) | |
Dividends paid | (62,239) | (59,954) |
Net proceeds from issuance of common stock | 145,125 | 40,366 |
Common stock redemptions | (1,282) | (271) |
Settlement of swaps | (1,684) | |
Debt issuance and assumption costs | (265) | (2,314) |
Net cash provided by (used in) financing activities | 56,876 | (82,724) |
Increase in cash and cash equivalents | 4,924 | 4,912 |
Cash and cash equivalents, beginning of period | 4,102 | 3,519 |
Cash and cash equivalents, end of period | 9,026 | 8,431 |
Supplemental Cash Flow Information: | ||
Interest paid | 28,692 | 40,533 |
Invoices accrued for construction, tenant improvement and other capitalized costs | 12,745 | 4,960 |
Mortgage notes payable assumed upon acquisition (adjusted to fair value) | 13,951 | 9,721 |
Capitalized interest | $ 452 | $ 33 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | s 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 June 30, 2016 , the Company had investments of approximately $3.4 billion in 202 real estate properties located in 30 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.0 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 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 and No. 2015-14 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, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements," 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 standard 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 | 6 Months Ended |
Jun. 30, 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 seller credits for loan prepayment, brokerage commission and excise taxes. The property is adjacent 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. Second Quarter 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 $18.8 million , purchase price credits of $1.5 million and capital obligations of $1.3 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. This transaction was accounted for as an asset acquisition as the property was seller occupied. In May 2016, the Company acquired a 63,012 square foot medical office building in Los Angeles, California for a purchase price of $20.0 million , including purchase price credits of $0.3 million , cash consideration of $6.5 million , and the assumption of debt of $13.2 million (excluding a $0.8 million fair value premium recorded at acquisition). The mortgage note payable assumed by the Company bears a contractual interest rate of 4.77% and matures on January 6, 2024. The property is located on HCA's West Hills Hospital and Medical Center campus, a 225 -bed general medical and surgical hospital. Upon acquisition, the property was 80% leased. The following table details the Company's acquisitions for the six months ended June 30, 2016 : (Dollars in millions) Date Purchase Price Purchase Price Credits (1) Mortgage (2) Cash (3) Real Other (4) Square Real estate acquisitions Washington 3/31/16 $ 38.3 $ (0.6 ) $ — $ 37.7 $ 37.7 $ — 69,712 Washington 4/29/16 21.6 (2.8 ) — 18.8 20.1 (1.3 ) 46,637 California 5/13/16 20.0 (0.3 ) (13.2 ) 6.5 20.4 (0.7 ) 63,012 $ 79.9 $ (3.7 ) $ (13.2 ) $ 63.0 $ 78.2 $ (2.0 ) 179,361 ______ (1) Includes tenant improvement and capital expenditure obligations as well as other assets acquired and liabilities assumed upon acquisition. (2) The mortgage note payable assumed in the acquisition does not reflect the fair value adjustments totaling $0.8 million recorded by the Company upon acquisition (included in Other). (3) Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. (4) Includes assets acquired, liabilities assumed, intangibles recognized at acquisition and fair value adjustments on debt assumed. Assets Held for Sale At June 30, 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 June 30, 2016 and December 31, 2015 . (Dollars in thousands) June 30, 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) 8 22 Assets of discontinued operations, net 8 22 Assets held for sale and discontinued operations, net $ 710 $ 724 Accounts payable and accrued liabilities $ 15 $ 28 Other liabilities 2 5 Liabilities of discontinued operations $ 17 $ 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 and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Statements of Income data: Revenues Rental income $ — $ 348 $ — $ 690 — 348 — 690 Expenses Property operating 19 19 27 48 Bad debts, net of recoveries — (1 ) — (1 ) 19 18 27 47 Other Income (Expense) Interest and other income, net — — — 20 — — — 20 Discontinued Operations Income (Loss) from discontinued operations (19 ) 330 (27 ) 663 Gain on sale of properties 7 — 7 — Income (Loss) from Discontinued Operations $ (12 ) $ 330 $ (20 ) $ 663 |
Notes and Bonds Payable
Notes and Bonds Payable | 6 Months Ended |
Jun. 30, 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) June 30, 2016 December 31, 2015 June 30, 2016 Unsecured Credit Facility 4/17 $ 190,000 $ 206,000 1.61 % Unsecured Term Loan Facility, net of issuance costs 2/19 199,374 199,257 1.66 % Senior Notes due 2021, net of discount and issuance costs 1/21 396,816 396,489 5.97 % Senior Notes due 2023, net of discount and issuance costs 4/23 247,096 246,897 3.95 % Senior Notes due 2025, net of discount and issuance costs 5/25 247,709 247,602 4.08 % Mortgage notes payable, net of discounts and issuance costs and including premiums 12/16-5/40 133,744 128,747 5.17 % $ 1,414,739 $ 1,424,992 2016 Activity First Quarter On January 5, 2016, the Company obtained 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. Second Quarter 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. On May 13, 2016, upon acquisition of a 63,012 square foot medical office property in Los Angeles, California, the Company assumed a $13.2 million mortgage note payable (excluding a fair value premium adjustment of $0.8 million). The mortgage note payable has a contractual interest rate of 4.77% (effective rate of 4.13% ). Subsequent Activity With proceeds of the equity offering that the Company completed on July 5, 2016, the Company repaid the outstanding balance of $190.0 million on its unsecured credit facility due 2017 ("Unsecured Credit Facility"). In addition, the Company repaid $50.0 million on its unsecured term loan facility due 2019 ("Unsecured Term Loan") leaving an outstanding balance of $150.0 million with a weighted average interest rate of approximately 1.6% . On July 29, 2016 , the Company entered into an amendment to its Unsecured Credit Facility that extended the maturity date from April 2017 to July 2020 , reduced the spread over LIBOR that the Company pays for borrowing, and revised financial covenants to provide the Company with increased flexibility. Amounts outstanding under the Unsecured Credit Facility bear interest at LIBOR plus an applicable margin rate. The margin rate, which depends on the Company's credit ratings, ranges from 0.83% to 1.55% (currently at 1.00% ). In addition, the Company pays a facility fee per annum on the aggregate amount of commitments ranging from 0.13% to 0.30% (currently at 0.20% ). In connection with the amendment, the Company paid upfront fees to the lenders and other costs of approximately $4.4 million which will be amortized over the term of the Unsecured Credit Facility. As of August 3, 2016, the Company had no borrowings outstanding under the Unsecured Credit Facility and had a remaining borrowing capacity of $700.0 million . On July 29, 2016, the Company also entered into an amendment to the Unsecured Term Loan. This amendment was for the purpose of conforming the financial covenants in the Unsecured Term Loan to those in the amendment to the Unsecured Credit Facility. The amendment did not impact the maturity date or cost of borrowing under the Unsecured Term Loan. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 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 June 30, 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 and six months ended June 30, 2016 and 2015 respectively, was as follows: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amount of gain (loss) recognized in OCI on derivative (effective portion) $ — $ (961 ) $ — $ (1,684 ) Amount of gain (loss) reclassified from accumulated OCI into Interest Expense (effective portion) $ (42 ) $ (31 ) $ (84 ) $ (31 ) Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ — $ 0 $ — $ 0 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 | 6 Months Ended |
Jun. 30, 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 $39.2 million on the redevelopment of these properties through June 30, 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 . It is anticipated that the garage will be completed in the third quarter of 2016 and tenants will begin to take occupancy of the expansion in the first quarter of 2017. Development Activity 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 $3.0 million has been spent as of June 30, 2016 . Construction is expected to be completed in the second quarter of 2017. Completed Developments 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 $11.5 million has been spent as of June 30, 2016 . The remaining $3.9 million budgeted for the project is primarily related to a tenant improvement allowance that is expected to be funded in 2016. In December 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. Construction was completed on April 15, 2016 . The total development budget is $5.6 million , of which $4.8 million has been spent as of June 30, 2016 . These amounts include $1.5 million used by the Company to purchase land in 2006 and previously recorded as land held for development. The project is 100% leased and the remaining $0.8 million budgeted for the project is related to tenant build-out that is expected to be completed by the end of 2016. The table below details the Company’s construction activity as of June 30, 2016 . The information included in the table below represents management’s estimates and expectations at June 30, 2016 , which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results. Balance at June 30, 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 Nashville, TN 2 Q1 2017 $ 32,180 $ 7,050 $ 39,230 $ 12,570 $ 51,800 294,000 Denver, CO 1 Q2 2017 2,994 — 2,994 23,506 26,500 98,000 Total $ 35,174 $ 7,050 $ 42,224 $ 36,076 $ 78,300 392,000 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following table provides a reconciliation of total stockholders' equity for the six months ended June 30, 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 49 145,119 — — — 145,168 Common stock redemptions — (410 ) — — — (410 ) Stock-based compensation 3 3,795 — — — 3,798 Net income — — — 21,300 — 21,300 Reclassification of loss on forward starting interest rate swaps — — 84 — — 84 Dividends to common stockholders ($0.60 per share) — — — — (62,239 ) (62,239 ) Balance at June 30, 2016 $ 1,067 $ 2,609,880 $ (1,485 ) $ 930,985 $ (2,189,999 ) $ 1,350,448 Common Stock The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2016 and the year ended December 31, 2015: June 30, 2016 December 31, 2015 Balance, beginning of period 101,517,009 98,828,098 Issuance of common stock 4,838,115 2,493,171 Nonvested share-based awards, net of withheld shares 307,138 195,740 Balance, end of period 106,662,262 101,517,009 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 six months ended June 30, 2016 , the Company sold a total of 4,795,601 shares of common stock, including 664,298 shares of common stock under the previous sales agreement. The sales generated $144.6 million in net proceeds at prices ranging from $28.31 to $33.66 per share (weighted average of $30.61 per share). The Company has 5,868,697 authorized shares remaining available to be sold under the current sales agreements as of July 29, 2016 . Common Stock Dividends During the six months ended June 30, 2016 , the Company declared and paid common stock dividends totaling $0.60 per share. On August 2, 2016 , the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on August 31, 2016 to stockholders of record on August 17, 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 six months ended June 30, 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 — (1,684 ) — — Amounts reclassified from accumulated other comprehensive loss arising from loss on defined benefit pension plan — — — 2,519 Amounts reclassified from accumulated other comprehensive loss 84 31 — — Net accumulated other comprehensive income (loss) 84 (1,653 ) — 2,519 Ending balance $ (1,485 ) $ (1,653 ) $ — $ — Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2016 2015 2016 2015 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 105,306,479 100,384,606 103,970,376 99,928,738 Nonvested shares (1,318,730 ) (1,111,579 ) (1,260,457 ) (1,109,723 ) Weighted average Common Shares outstanding—Basic 103,987,749 99,273,027 102,709,919 98,819,015 Weighted average Common Shares outstanding—Basic 103,987,749 99,273,027 102,709,919 98,819,015 Dilutive effect of restricted stock 691,064 580,989 646,341 599,042 Dilutive effect of employee stock purchase plan 90,732 91,186 114,274 136,038 Weighted average Common Shares outstanding—Diluted 104,769,545 99,945,202 103,470,534 99,554,095 Net Income (Loss) Income from continuing operations $ 12,157 $ 17,586 $ 21,320 $ 22,635 Discontinued operations (12 ) 330 (20 ) 663 Net income $ 12,145 $ 17,916 $ 21,300 $ 23,298 Basic Earnings Per Common Share Income from continuing operations $ 0.12 $ 0.18 $ 0.21 $ 0.23 Discontinued operations 0.00 0.00 0.00 0.01 Net income $ 0.12 $ 0.18 $ 0.21 $ 0.24 Diluted Earnings Per Common Share Income from continuing operations $ 0.12 $ 0.18 $ 0.21 $ 0.23 Discontinued operations 0.00 0.00 0.00 0.00 Net income $ 0.12 $ 0.18 $ 0.21 $ 0.23 Incentive Plans A summary of the activity under the stock-based incentive plans for the three and six months ended June 30, 2016 and 2015 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock-based awards, beginning of period 1,326,746 1,118,414 1,092,262 1,057,732 Granted 21,374 23,201 321,580 112,269 Vested (36,951 ) (38,236 ) (102,673 ) (66,622 ) Stock-based awards, end of period 1,311,169 1,103,379 1,311,169 1,103,379 During the six months ended June 30, 2016 and 2015 , the Company withheld 14,442 and 10,119 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 maintains the 2000 Employee Stock Purchase Plan (the "Purchase Plan"). A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2016 and 2015 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Outstanding and exercisable, beginning of period 361,955 378,771 340,958 393,902 Granted — — 198,450 197,640 Exercised (10,839 ) (2,885 ) (37,528 ) (35,931 ) Forfeited (6,208 ) (10,667 ) (13,890 ) (31,446 ) Expired — — (143,082 ) (158,946 ) Outstanding and exercisable, end of period 344,908 365,219 344,908 365,219 Subsequent Activity On July 5, 2016 , the Company issued 9,200,000 shares of common stock, par value $0.01 per share, at $33.13 per share in an underwritten public offering pursuant to the Company's existing effective registration statement. The net proceeds of the offering, after offering expenses, were approximately $304.6 million . A portion of the proceeds were used to repay the $190.0 million of borrowings outstanding under the Unsecured Credit Facility and to reduce the unsecured term loan due 2019 outstanding borrowings by $50.0 million . |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 6 Months Ended |
Jun. 30, 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 and 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. On May 6, 2016, the Company paid the total benefit obligation of $19.6 million which reduced Other liabilities on the Company's Condensed Consolidated Balance Sheets. 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, and included in the payment of the total benefit obligation, Mr. Emery received 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 Second Amendment to the Second Amended and Restated Executive Retirement Plan (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 and six months ended June 30, 2016 and 2015 is detailed in the following table. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Service cost $ — $ 8 $ — $ 29 Interest cost — 56 — 225 Amortization of net loss — (50 ) — (198 ) Amortization of prior service cost — 86 — 343 Total recognized in net periodic benefit cost $ — $ 100 $ — $ 399 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 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 and unsecured term loan due 2019 - 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 June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,414.7 $ 1,469.7 $ 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2016 , the Company had investments of approximately $3.4 billion in 202 real estate properties located in 30 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.0 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 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 and No. 2015-14 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, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements," 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 standard 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) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Acquisitions | The following table details the Company's acquisitions for the six months ended June 30, 2016 : (Dollars in millions) Date Purchase Price Purchase Price Credits (1) Mortgage (2) Cash (3) Real Other (4) Square Real estate acquisitions Washington 3/31/16 $ 38.3 $ (0.6 ) $ — $ 37.7 $ 37.7 $ — 69,712 Washington 4/29/16 21.6 (2.8 ) — 18.8 20.1 (1.3 ) 46,637 California 5/13/16 20.0 (0.3 ) (13.2 ) 6.5 20.4 (0.7 ) 63,012 $ 79.9 $ (3.7 ) $ (13.2 ) $ 63.0 $ 78.2 $ (2.0 ) 179,361 ______ (1) Includes tenant improvement and capital expenditure obligations as well as other assets acquired and liabilities assumed upon acquisition. (2) The mortgage note payable assumed in the acquisition does not reflect the fair value adjustments totaling $0.8 million recorded by the Company upon acquisition (included in Other). (3) Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. (4) Includes assets acquired, liabilities assumed, intangibles recognized at acquisition and fair value adjustments on debt assumed. |
Discontinued Operations and Assets Held for Sale | The table below reflects the assets and liabilities of the property classified as held for sale as of June 30, 2016 and December 31, 2015 . (Dollars in thousands) June 30, 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) 8 22 Assets of discontinued operations, net 8 22 Assets held for sale and discontinued operations, net $ 710 $ 724 Accounts payable and accrued liabilities $ 15 $ 28 Other liabilities 2 5 Liabilities of discontinued operations $ 17 $ 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 and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Statements of Income data: Revenues Rental income $ — $ 348 $ — $ 690 — 348 — 690 Expenses Property operating 19 19 27 48 Bad debts, net of recoveries — (1 ) — (1 ) 19 18 27 47 Other Income (Expense) Interest and other income, net — — — 20 — — — 20 Discontinued Operations Income (Loss) from discontinued operations (19 ) 330 (27 ) 663 Gain on sale of properties 7 — 7 — Income (Loss) from Discontinued Operations $ (12 ) $ 330 $ (20 ) $ 663 |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 6 Months Ended |
Jun. 30, 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) June 30, 2016 December 31, 2015 June 30, 2016 Unsecured Credit Facility 4/17 $ 190,000 $ 206,000 1.61 % Unsecured Term Loan Facility, net of issuance costs 2/19 199,374 199,257 1.66 % Senior Notes due 2021, net of discount and issuance costs 1/21 396,816 396,489 5.97 % Senior Notes due 2023, net of discount and issuance costs 4/23 247,096 246,897 3.95 % Senior Notes due 2025, net of discount and issuance costs 5/25 247,709 247,602 4.08 % Mortgage notes payable, net of discounts and issuance costs and including premiums 12/16-5/40 133,744 128,747 5.17 % $ 1,414,739 $ 1,424,992 |
Derivative Financial Instrume19
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2016 and 2015 respectively, was as follows: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amount of gain (loss) recognized in OCI on derivative (effective portion) $ — $ (961 ) $ — $ (1,684 ) Amount of gain (loss) reclassified from accumulated OCI into Interest Expense (effective portion) $ (42 ) $ (31 ) $ (84 ) $ (31 ) 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 (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Construction Activity | The table below details the Company’s construction activity as of June 30, 2016 . The information included in the table below represents management’s estimates and expectations at June 30, 2016 , which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results. Balance at June 30, 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 Nashville, TN 2 Q1 2017 $ 32,180 $ 7,050 $ 39,230 $ 12,570 $ 51,800 294,000 Denver, CO 1 Q2 2017 2,994 — 2,994 23,506 26,500 98,000 Total $ 35,174 $ 7,050 $ 42,224 $ 36,076 $ 78,300 392,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Reconciliation of total equity | The following table provides a reconciliation of total stockholders' equity for the six months ended June 30, 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 49 145,119 — — — 145,168 Common stock redemptions — (410 ) — — — (410 ) Stock-based compensation 3 3,795 — — — 3,798 Net income — — — 21,300 — 21,300 Reclassification of loss on forward starting interest rate swaps — — 84 — — 84 Dividends to common stockholders ($0.60 per share) — — — — (62,239 ) (62,239 ) Balance at June 30, 2016 $ 1,067 $ 2,609,880 $ (1,485 ) $ 930,985 $ (2,189,999 ) $ 1,350,448 |
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 six months ended June 30, 2016 and the year ended December 31, 2015: June 30, 2016 December 31, 2015 Balance, beginning of period 101,517,009 98,828,098 Issuance of common stock 4,838,115 2,493,171 Nonvested share-based awards, net of withheld shares 307,138 195,740 Balance, end of period 106,662,262 101,517,009 |
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 six months ended June 30, 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 — (1,684 ) — — Amounts reclassified from accumulated other comprehensive loss arising from loss on defined benefit pension plan — — — 2,519 Amounts reclassified from accumulated other comprehensive loss 84 31 — — Net accumulated other comprehensive income (loss) 84 (1,653 ) — 2,519 Ending balance $ (1,485 ) $ (1,653 ) $ — $ — |
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 and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2016 2015 2016 2015 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 105,306,479 100,384,606 103,970,376 99,928,738 Nonvested shares (1,318,730 ) (1,111,579 ) (1,260,457 ) (1,109,723 ) Weighted average Common Shares outstanding—Basic 103,987,749 99,273,027 102,709,919 98,819,015 Weighted average Common Shares outstanding—Basic 103,987,749 99,273,027 102,709,919 98,819,015 Dilutive effect of restricted stock 691,064 580,989 646,341 599,042 Dilutive effect of employee stock purchase plan 90,732 91,186 114,274 136,038 Weighted average Common Shares outstanding—Diluted 104,769,545 99,945,202 103,470,534 99,554,095 Net Income (Loss) Income from continuing operations $ 12,157 $ 17,586 $ 21,320 $ 22,635 Discontinued operations (12 ) 330 (20 ) 663 Net income $ 12,145 $ 17,916 $ 21,300 $ 23,298 Basic Earnings Per Common Share Income from continuing operations $ 0.12 $ 0.18 $ 0.21 $ 0.23 Discontinued operations 0.00 0.00 0.00 0.01 Net income $ 0.12 $ 0.18 $ 0.21 $ 0.24 Diluted Earnings Per Common Share Income from continuing operations $ 0.12 $ 0.18 $ 0.21 $ 0.23 Discontinued operations 0.00 0.00 0.00 0.00 Net income $ 0.12 $ 0.18 $ 0.21 $ 0.23 |
Summary of the activity under the Incentive Plan | A summary of the activity under the stock-based incentive plans for the three and six months ended June 30, 2016 and 2015 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock-based awards, beginning of period 1,326,746 1,118,414 1,092,262 1,057,732 Granted 21,374 23,201 321,580 112,269 Vested (36,951 ) (38,236 ) (102,673 ) (66,622 ) Stock-based awards, end of period 1,311,169 1,103,379 1,311,169 1,103,379 |
Summary of employee stock purchase plan activity | A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2016 and 2015 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Outstanding and exercisable, beginning of period 361,955 378,771 340,958 393,902 Granted — — 198,450 197,640 Exercised (10,839 ) (2,885 ) (37,528 ) (35,931 ) Forfeited (6,208 ) (10,667 ) (13,890 ) (31,446 ) Expired — — (143,082 ) (158,946 ) Outstanding and exercisable, end of period 344,908 365,219 344,908 365,219 |
Defined Benefit Pension Plan (T
Defined Benefit Pension Plan (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2016 and 2015 is detailed in the following table. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Service cost $ — $ 8 $ — $ 29 Interest cost — 56 — 225 Amortization of net loss — (50 ) — (198 ) Amortization of prior service cost — 86 — 343 Total recognized in net periodic benefit cost $ — $ 100 $ — $ 399 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,414.7 $ 1,469.7 $ 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 | Jun. 30, 2016USD ($)ft²stateproperty |
Business Overview: | |
Gross investment amount, total | $ | $ 3.4 |
Number of real estate properties | property | 202 |
Number of states that the Company owns real estate in, whole units | state | 30 |
Square footage of owned real estate properties | 14.5 |
Approximate square feet for which Nationwide property management services provided by company | 10 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Debt Issuance Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Other assets, net | $ 185,298 | $ 186,416 |
Assets | 2,882,064 | 2,810,224 |
Notes and bonds payable | 1,414,739 | 1,424,992 |
Liabilities | 1,531,616 | 1,567,477 |
Liabilities and Equity | $ 2,882,064 | 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) $ in Millions | May 13, 2016USD ($)ft²Bed | Apr. 29, 2016USD ($)ft²Bed | Mar. 31, 2016USD ($)ft²Bed | Jun. 30, 2016USD ($)ft² |
Business Acquisition [Line Items] | ||||
Square footage | ft² | 179,361 | |||
Real Estate | $ 78.2 | |||
Other | (2) | |||
Real Estate Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 79.9 | |||
Cash consideration | 63 | |||
Purchase price adjustments/credits | (3.7) | |||
Capital obligations | (13.2) | |||
Washington [Member] | Real Estate Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Square footage | ft² | 46,637 | 69,712 | ||
Purchase price | $ 21.6 | $ 38.3 | ||
Cash consideration | 18.8 | 37.7 | ||
Purchase price credits | 1.5 | |||
Purchase price adjustments/credits | (2.8) | (0.6) | ||
Acquisition costs expensed | 1.6 | |||
Capital obligations | $ 0 | $ 0 | ||
Number of Beds | Bed | 321 | 281 | ||
Percentage of property leased | 100.00% | 100.00% | ||
Date Acquired | Apr. 29, 2016 | Mar. 31, 2016 | ||
Real Estate | $ 20.1 | $ 37.7 | ||
Other | $ (1.3) | $ 0 | ||
CALIFORNIA | Real Estate Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Square footage | ft² | 63,012 | |||
Purchase price | $ 20 | |||
Cash consideration | 6.5 | |||
Purchase price adjustments/credits | (0.3) | |||
Capital obligations | $ (13.2) | |||
Number of Beds | Bed | 225 | |||
Percentage of property leased | 80.00% | |||
Date Acquired | May 13, 2016 | |||
Real Estate | $ 20.4 | |||
Other | (0.7) | |||
Premium recorded at acquisition | $ 0.8 | $ 0.8 | ||
Stated interest rate (percent) | 4.77% |
Real Estate Investments - Asset
Real Estate Investments - Assets Held for Sale (Details) | Jun. 30, 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 | Jun. 30, 2016 | Dec. 31, 2015 |
Balance Sheet data (as of the period ended): | ||
Land | $ 208,386 | $ 198,585 |
Buildings, improvements and lease intangibles | 3,235,744 | 3,135,893 |
Real estate properties, Total | 3,506,774 | 3,380,908 |
Accumulated depreciation | (819,744) | (761,926) |
Total real estate properties, net | 2,687,030 | 2,618,982 |
Other assets, net (including receivables) | 185,298 | 186,416 |
Assets held for sale and discontinued operations, net | 710 | 724 |
Liabilities of discontinued operations | 17 | 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) | 8 | 22 |
Assets of discontinued operations, net | 8 | 22 |
Assets held for sale and discontinued operations, net | 710 | 724 |
Accounts payable and accrued liabilities | 15 | 28 |
Other liabilities | 2 | 5 |
Liabilities of discontinued operations | $ 17 | $ 33 |
Real Estate Investments - Dis29
Real Estate Investments - Discontinued Operations and Assets Held for Sale - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Rental income | $ 101,472 | $ 95,450 | $ 200,212 | $ 190,484 |
Expenses | ||||
Property operating | 36,263 | 33,927 | 71,668 | 68,189 |
Bad debts, net of recoveries | 78 | 27 | 39 | (181) |
Other Income (Expense) | ||||
Interest and other income, net | 93 | 147 | 179 | 239 |
Discontinued Operations | ||||
Income from discontinued operations | (19) | 330 | (27) | 663 |
Gain on sale of properties | 7 | 0 | 7 | 0 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | (12) | 330 | (20) | 663 |
Discontinued Operations [Member] | ||||
Revenues | ||||
Rental income | 0 | 348 | 0 | 690 |
Revenues | 0 | 348 | 0 | 690 |
Expenses | ||||
Property operating | 19 | 19 | 27 | 48 |
Bad debts, net of recoveries | 0 | (1) | 0 | (1) |
Total Expenses | 19 | 18 | 27 | 47 |
Other Income (Expense) | ||||
Interest and other income, net | 0 | 0 | 0 | 20 |
Total other income (expense) | 0 | 0 | 0 | 20 |
Discontinued Operations | ||||
Income from discontinued operations | (19) | 330 | (27) | 663 |
Gain on sale of properties | 7 | 0 | 7 | 0 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ (12) | $ 330 | $ (20) | $ 663 |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) $ in Thousands | Jul. 29, 2016USD ($) | May 13, 2016USD ($)ft² | Apr. 29, 2016USD ($)ft² | Feb. 11, 2016USD ($)ft² | Jun. 30, 2016USD ($)ft² | Dec. 31, 2015USD ($) | Aug. 03, 2016USD ($) | Jul. 05, 2016USD ($) | Jan. 05, 2016USD ($)ft² |
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 1,414,739 | $ 1,424,992 | |||||||
Square footage of owned real estate properties | ft² | 14,500,000 | ||||||||
Square footage of real estate acquired | ft² | 179,361 | ||||||||
CALIFORNIA | Mortgage Note Financing [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Secured Debt | $ 13,200 | $ 11,500 | |||||||
Stated interest rate (percent) | 3.60% | ||||||||
CALIFORNIA | Real Estate Acquisitions [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (percent) | 4.77% | ||||||||
Square footage of real estate acquired | ft² | 63,012 | ||||||||
Premium recorded at acquisition | $ 800 | $ 800 | |||||||
Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 190,000 | 206,000 | |||||||
Effective interest rate (percent) | 1.61% | ||||||||
Medium-term Notes [Member] | Term Loan Due 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 199,374 | 199,257 | |||||||
Effective interest rate (percent) | 1.66% | ||||||||
Senior Notes [Member] | Senior Notes due 2021, net of discount and issuance costs [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 396,816 | 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 | $ 247,096 | 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 | $ 247,709 | 247,602 | |||||||
Effective interest rate (percent) | 4.08% | ||||||||
Senior Notes [Member] | Medical Office Building [Member] | 3.60% Secured Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Square footage of owned real estate properties | ft² | 90,607 | ||||||||
Mortgages [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 133,744 | $ 128,747 | |||||||
Effective interest rate (percent) | 5.17% | ||||||||
Mortgages [Member] | 5.49% Secured Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (percent) | 5.49% | ||||||||
Outstanding principal | $ 11,400 | ||||||||
Mortgages [Member] | 5.86% Secured Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (percent) | 5.86% | ||||||||
Outstanding principal | $ 10,200 | ||||||||
Mortgages [Member] | 5.99% Secured Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (percent) | 5.99% | ||||||||
Outstanding principal | $ 7,300 | ||||||||
Mortgages [Member] | 4.77% Secured Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective interest rate (percent) | 4.13% | ||||||||
Stated interest rate (percent) | 4.77% | ||||||||
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 | ||||||||
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 | ||||||||
Subsequent Event [Member] | Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of loan | $ 190,000 | ||||||||
Commitment fee percentage (percent) | 0.20% | ||||||||
Upfront lender fees | $ 4,400 | ||||||||
Borrowings outstanding | $ 0 | ||||||||
Remaining borrowing capacity | $ 700,000 | ||||||||
Subsequent Event [Member] | Medium-term Notes [Member] | Term Loan Due 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | 150,000 | ||||||||
Repayment of loan | $ 50,000 | ||||||||
Weighted average interest rate (percent) | 1.60% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 1.00% | ||||||||
Minimum [Member] | Subsequent Event [Member] | Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage (percent) | 0.13% | ||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 0.83% | ||||||||
Maximum [Member] | Subsequent Event [Member] | Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percentage (percent) | 0.30% | ||||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Line of Credit [Member] | Unsecured Credit Facility Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin rate (percent) | 1.55% |
Derivative Financial Instrume31
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative [Line Items] | ||||
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | $ (200) | $ (200) | ||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivative (effective portion) | 0 | $ (961) | 0 | $ (1,684) |
Interest Expense [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated OCI into Interest Expense (effective portion) | (42) | (31) | (84) | (31) |
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Construction Activity (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016USD ($)ft²property | Mar. 31, 2016property | Dec. 31, 2015USD ($)ft² | Dec. 31, 2006USD ($) | |
Other Commitments [Line Items] | ||||
Approximate Square Feet | ft² | 14,500,000 | |||
Land held for redevelopment | $ 17,438 | $ 17,452 | ||
ALABAMA | ||||
Other Commitments [Line Items] | ||||
Total Amount Funded | 11,500 | |||
Estimated Remaining Fundings | 3,900 | |||
Estimated Total Investment | 15,400 | |||
TEXAS | ||||
Other Commitments [Line Items] | ||||
Number of Properties | property | 2 | |||
Estimated Remaining Fundings | $ 800 | |||
TENNESSEE | ||||
Other Commitments [Line Items] | ||||
Number of Properties | property | 2 | |||
Total Amount Funded | $ 39,200 | |||
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] | ||||
Total Amount Funded | $ 4,800 | |||
Estimated Total Investment | $ 5,600 | |||
Approximate Square Feet | ft² | 12,900 | |||
Land held for redevelopment | $ 1,500 | |||
Percentage of property leased | 100.00% | |||
Medical Office Building [Member] | TENNESSEE | ||||
Other Commitments [Line Items] | ||||
Number of Properties | property | 2 | |||
Construction in Progress, Gross | $ 32,180 | |||
Other Amounts Funded | 7,050 | |||
Total Amount Funded | 39,230 | |||
Estimated Remaining Fundings | 12,570 | |||
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 | $ 2,994 | |||
Other Amounts Funded | 0 | |||
Total Amount Funded | 2,994 | |||
Estimated Remaining Fundings | 23,506 | |||
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 | $ 35,174 | |||
Other Amounts Funded | 7,050 | |||
Total Amount Funded | 42,224 | |||
Estimated Remaining Fundings | 36,076 | |||
Estimated Total Investment | $ 78,300 | |||
Approximate Square Feet | ft² | 392,000 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of total stockholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Net income | $ 21,300 | $ 23,298 |
Common Stock [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2015 | 1,015 | |
Issuance of common stock | 49 | |
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 ($0.60 per share) | 0 | |
Balance at June 30, 2016 | 1,067 | |
Additional Paid-In Capital [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2015 | 2,461,376 | |
Issuance of common stock | 145,119 | |
Common stock redemptions | (410) | |
Stock-based compensation | 3,795 | |
Net income | 0 | |
Reclassification of loss on forward starting interest rate swaps | 0 | |
Dividends to common stockholders ($0.60 per share) | 0 | |
Balance at June 30, 2016 | 2,609,880 | |
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 | 84 | |
Dividends to common stockholders ($0.60 per share) | 0 | |
Balance at June 30, 2016 | (1,485) | |
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 | 21,300 | |
Reclassification of loss on forward starting interest rate swaps | 0 | |
Dividends to common stockholders ($0.60 per share) | 0 | |
Balance at June 30, 2016 | 930,985 | |
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 ($0.60 per share) | (62,239) | |
Balance at June 30, 2016 | $ (2,189,999) | |
Dividends per share paid to common stockholders (in dollars per share) | $ 0.60 | |
Total Stockholders' Equity [Member] | ||
Increase (Decrease) in Stockholders' Equity [Rollforward] | ||
Balance at December 31, 2015 | $ 1,242,747 | |
Issuance of common stock | 145,168 | |
Common stock redemptions | (410) | |
Stock-based compensation | 3,798 | |
Net income | 21,300 | |
Reclassification of loss on forward starting interest rate swaps | 84 | |
Dividends to common stockholders ($0.60 per share) | (62,239) | |
Balance at June 30, 2016 | $ 1,350,448 |
Stockholders' Equity - Reconc34
Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 101,517,000 | |
Balance, end of period | 106,662,000 | 101,517,000 |
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 | 4,838,115 | 2,493,171 |
Nonvested share-based awards, net | 307,138 | 195,740 |
Balance, end of period | 106,662,262 | 101,517,009 |
Stockholders' Equity (Stock Tra
Stockholders' Equity (Stock Transactions - Narrative) (Details) $ / shares in Units, $ in Thousands | Aug. 02, 2016$ / shares | Jul. 05, 2016USD ($)$ / sharesshares | Jun. 30, 2016$ / sharesshares | Jun. 30, 2015$ / shares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2016investment_bank | Feb. 19, 2016shares | Feb. 17, 2016investment_bank | Dec. 31, 2015$ / shares |
Class of Stock [Line Items] | ||||||||||
Net proceeds from issuance of common stock | $ | $ 145,125 | $ 40,366 | ||||||||
Dividends per share declared to common stockholders (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.6 | $ 0.60 | ||||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
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 | 4,795,601 | |||||||||
Net proceeds from issuance of common stock | $ | $ 144,600 | |||||||||
Number of authorized shares remaining under offering program | shares | 5,868,697 | 5,868,697 | ||||||||
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] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (shares) | shares | 9,200,000 | |||||||||
Net proceeds from issuance of common stock | $ | $ 304,600 | |||||||||
Dividends per share declared to common stockholders (in dollars per share) | $ 0.30 | |||||||||
Common stock, par value (dollars per share) | $ 0.01 | |||||||||
Share price | $ 33.13 | |||||||||
Minimum [Member] | At The Market Equity Offering Program [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (price per share) | $ 28.31 | |||||||||
Maximum [Member] | At The Market Equity Offering Program [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (price per share) | 33.66 | |||||||||
Weighted Average [Member] | At The Market Equity Offering Program [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (price per share) | $ 30.61 | |||||||||
Unsecured Credit Facility Due 2017 [Member] | Line of Credit [Member] | Subsequent Event [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repayment of principal | $ | $ 190,000 | |||||||||
Repayment of loan | $ | 190,000 | |||||||||
Term Loan Due 2019 [Member] | Medium-term Notes [Member] | Subsequent Event [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repayment of loan | $ | $ 50,000 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Amounts reclassified from accumulated other comprehensive loss arising from loss on defined benefit pension plan | $ 0 | $ 2,519 | $ 0 | $ 2,519 |
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 | (1,684) | ||
Amounts reclassified from accumulated other comprehensive loss arising from loss on defined benefit pension plan | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 84 | 31 | ||
Net accumulated other comprehensive income (loss) | 84 | (1,653) | ||
Ending balance | (1,485) | (1,653) | (1,485) | (1,653) |
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 arising from loss on defined benefit pension plan | 0 | 2,519 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net accumulated other comprehensive income (loss) | 0 | 2,519 | ||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | |
Weighted average Common Shares outstanding | |||||
Weighted average Common Shares outstanding | 105,306,479 | 100,384,606 | 103,970,376 | 99,928,738 | |
Nonvested shares | (1,318,730) | (1,111,579) | (1,260,457) | (1,109,723) | |
Weighted average Common Shares—Basic | 103,987,749 | 99,273,027 | 102,709,919 | 98,819,015 | |
Dilutive effect of restricted stock | 691,064 | 580,989 | 646,341 | 599,042 | |
Dilutive effect of employee stock purchase plan | 90,732 | 91,186 | 114,274 | 136,038 | |
Weighted average Common Shares outstanding—Diluted | 104,769,545 | 99,945,202 | 103,470,534 | 99,554,095 | |
Net Income (Loss) | |||||
Income from continuing operations | $ 12,157 | $ 17,586 | $ 21,320 | $ 22,635 | |
Discontinued operations | (12) | 330 | (20) | 663 | |
NET INCOME | $ 12,145 | $ 17,916 | $ 21,300 | $ 23,298 | $ 23,298 |
Basic Earnings (Loss) Per Common Share | |||||
Income from continuing operations (in dollars per share) | $ 0.12 | $ 0.18 | $ 0.21 | $ 0.23 | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 | |
Net income (in dollars per share) | 0.12 | 0.18 | 0.21 | 0.24 | |
Diluted Earnings (Loss) Per Common Share | |||||
Income from continuing operations (in dollars per share) | 0.12 | 0.18 | 0.21 | 0.23 | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | |
Net income (in dollars per share) | $ 0.12 | $ 0.18 | $ 0.21 | $ 0.23 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock Incentive Plan [Member] - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of the activity under the incentive plans | ||||
Stock-based awards, beginning of period (shares) | 1,326,746 | 1,118,414 | 1,092,262 | 1,057,732 |
Granted (shares) | 21,374 | 23,201 | 321,580 | 112,269 |
Vested (shares) | (36,951) | (38,236) | (102,673) | (66,622) |
Stock-based awards, end of period (shares) | 1,311,169 | 1,103,379 | 1,311,169 | 1,103,379 |
Restricted Stock [Member] | ||||
Summary of the activity under the incentive plans | ||||
Shares withheld to pay estimated withholding taxes | 14,442 | 10,119 |
Stockholders' Equity - Summar39
Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member] - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of the Employee Stock Purchase Plan activity | ||||
Outstanding and exercisable, beginning of period (shares) | 361,955 | 378,771 | 340,958 | 393,902 |
Granted (shares) | 0 | 0 | 198,450 | 197,640 |
Exercised (shares) | (10,839) | (2,885) | (37,528) | (35,931) |
Forfeited (shares) | (6,208) | (10,667) | (13,890) | (31,446) |
Expired (shares) | 0 | 0 | (143,082) | (158,946) |
Outstanding and exercisable, end of period (shares) | 344,908 | 365,219 | 344,908 | 365,219 |
Defined Benefit Pension Plan (D
Defined Benefit Pension Plan (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2016USD ($) | Jun. 30, 2016USD ($)plan_participant | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)plan_participant | Jun. 30, 2015USD ($) | May 05, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Current period charge | $ 5,300 | |||||
Total benefit obligation | $ 19,600 | |||||
Number of plan participants who have not reached age 65 | plan_participant | 2 | 2 | ||||
Net periodic benefit cost recorded related to the Company's pension plans | ||||||
Service cost | 8 | $ 29 | ||||
Interest cost | 56 | 225 | ||||
Amortization of net loss | (50) | (198) | ||||
Amortization of prior service cost | 86 | 343 | ||||
Total recognized in net periodic benefit cost | $ 0 | 100 | $ 0 | $ 399 | ||
Chief Executive Officer [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 | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,414.7 | $ 1,425 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,469.7 | $ 1,439 |