Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 116,545,032 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Real estate properties: | ||
Land | $ 193,072 | $ 199,672 |
Buildings, improvements and lease intangibles | 3,388,734 | 3,386,480 |
Personal property | 10,155 | 10,291 |
Construction in progress | 11,655 | |
Land held for development | 20,123 | 20,123 |
Real estate properties, Total | 3,612,084 | 3,628,221 |
Less accumulated depreciation and amortization | (864,573) | (840,839) |
Total real estate properties, net | 2,747,511 | 2,787,382 |
Cash and cash equivalents | 2,033 | 5,409 |
Restricted cash | 9,151 | 49,098 |
Assets held for sale and discontinued operations, net | 8,767 | 3,092 |
Other assets, net | 191,036 | 195,666 |
Total assets | 2,958,498 | 3,040,647 |
Liabilities: | ||
Notes and bonds payable | 1,203,146 | 1,264,370 |
Accounts payable and accrued liabilities | 62,121 | 78,266 |
Liabilities of properties held for sale and discontinued operations | 398 | 614 |
Other liabilities | 46,556 | 43,983 |
Total liabilities | 1,312,221 | 1,387,233 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value per share; 50,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value per share; 300,000 and 150,000 shares authorized; 116,545 and 116,417 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 1,165 | 1,164 |
Additional paid-in capital | 2,923,519 | 2,917,914 |
Accumulated other comprehensive loss | (1,316) | (1,401) |
Cumulative net income attributable to common stockholders | 1,052,326 | 995,256 |
Cumulative dividends | (2,329,417) | (2,259,519) |
Total stockholders' equity | 1,646,277 | 1,653,414 |
Total liabilities and stockholders' equity | $ 2,958,498 | $ 3,040,647 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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 | 300,000,000 | 150,000,000 |
Common stock, issued shares | 116,545,000 | 116,417,000 |
Common stock, outstanding shares | 116,545,000 | 116,417,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Rental income | $ 104,869 | $ 101,472 | $ 208,957 | $ 200,212 |
Other operating | 376 | 1,170 | 857 | 2,451 |
Revenues | 105,245 | 102,642 | 209,814 | 202,663 |
EXPENSES | ||||
Property operating | 38,184 | 36,263 | 76,018 | 71,668 |
General and administrative | 8,005 | 7,756 | 16,699 | 15,828 |
Acquisition and pursuit costs | 785 | 373 | 1,371 | 2,547 |
Depreciation and amortization | 34,823 | 31,290 | 69,274 | 61,684 |
Bad debts, net of recoveries | 105 | 78 | 171 | 39 |
Total Expenses | 81,902 | 75,760 | 163,533 | 151,766 |
OTHER INCOME (EXPENSE) | ||||
Gain on sales of real estate assets | 16,124 | 1 | 39,527 | 1 |
Interest expense | (14,315) | (14,815) | (28,587) | (29,753) |
Pension termination | 0 | (4) | 0 | (4) |
Impairment of real estate assets | (5) | 0 | (328) | 0 |
Interest and other income, net | 77 | 93 | 189 | 179 |
Total other income (expense) | 1,881 | (14,725) | 10,801 | (29,577) |
INCOME FROM CONTINUING OPERATIONS | 25,224 | 12,157 | 57,082 | 21,320 |
DISCONTINUED OPERATIONS | ||||
Loss from discontinued operations | 0 | (19) | (17) | (27) |
Gain on sales of real estate properties | 0 | 7 | 5 | 7 |
LOSS FROM DISCONTINUED OPERATIONS | 0 | (12) | (12) | (20) |
NET INCOME | $ 25,224 | $ 12,145 | $ 57,070 | $ 21,300 |
BASIC EARNINGS PER COMMON SHARE: | ||||
Income from continuing operations (in dollars per share) | $ 0.22 | $ 0.12 | $ 0.50 | $ 0.21 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | 0.22 | 0.12 | 0.50 | 0.21 |
DILUTED EARNINGS PER COMMON SHARE: | ||||
Income from continuing operations (in dollars per share) | 0.22 | 0.12 | 0.49 | 0.21 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | $ 0.22 | $ 0.12 | $ 0.49 | $ 0.21 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC (in shares) | 114,721,099 | 103,987,749 | 114,698,219 | 102,709,919 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED (in shares) | 115,674,364 | 104,769,545 | 115,596,829 | 103,470,534 |
DIVIDENDS DECLARED, PER COMMON SHARE, DURING THE PERIOD (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 25,224 | $ 12,145 | $ 57,070 | $ 21,300 |
Forward starting interest rate swaps: | ||||
Reclassification adjustment for losses included in net income (Interest expense) | 42 | 42 | 85 | 84 |
Total other comprehensive income | 42 | 42 | 85 | 84 |
COMPREHENSIVE INCOME | $ 25,266 | $ 12,187 | $ 57,155 | $ 21,384 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity (Unaudited) Statement - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Cumulative Net Income Attributable to Common Stockholders | Cumulative Dividends |
Beginning balance at Dec. 31, 2016 | $ 1,653,414 | $ 1,164 | $ 2,917,914 | $ (1,401) | $ 995,256 | $ (2,259,519) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock | 1,041 | 1,041 | ||||
Common stock redemptions | (502) | (502) | ||||
Stock-based compensation | 5,067 | 1 | 5,066 | |||
Net income | 57,070 | 57,070 | ||||
Reclassification of loss on forward starting interest rate swaps | 85 | 85 | ||||
Dividends to common stockholders ($0.60 per share) | (69,898) | (69,898) | ||||
Ending balance at Jun. 30, 2017 | $ 1,646,277 | $ 1,165 | $ 2,923,519 | $ (1,316) | $ 1,052,326 | $ (2,329,417) |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividend per share to common Stockholders (in dollars per share) | $ 0.60 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 57,070 | $ 21,300 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 71,504 | 63,280 |
Stock-based compensation | 5,067 | 3,798 |
Amortization of straight-line rent receivable | (3,534) | (4,223) |
Amortization of straight-line rent liability | 316 | 368 |
Gain on sales of real estate assets | (39,532) | (8) |
Impairment of real estate assets | 328 | |
Provision for bad debts, net | 171 | 39 |
Changes in operating assets and liabilities: | ||
Other assets | 536 | 3,139 |
Accounts payable and accrued liabilities | (10,236) | (7,927) |
Other liabilities | 2,281 | (20,287) |
Net cash provided by operating activities | 83,971 | 59,479 |
INVESTING ACTIVITIES | ||
Acquisitions of real estate | (53,536) | (63,172) |
Development of real estate | (10,098) | (18,982) |
Additional long-lived assets | (36,329) | (29,286) |
Proceeds from sales of real estate | 117,010 | |
Proceeds from mortgages and notes receivable repayments | 10 | 9 |
Net cash provided by (used in) investing activities | 17,057 | (111,431) |
FINANCING ACTIVITIES | ||
Net repayments on unsecured credit facility | (72,000) | (16,000) |
Borrowings of notes and bonds payable | 11,500 | |
Repayments on notes and bonds payable | (2,249) | (19,963) |
Dividends paid | (69,898) | (62,239) |
Net proceeds from issuance of common stock | 1,005 | 145,125 |
Common stock redemptions | (1,125) | (1,282) |
Debt issuance and assumption costs | (84) | (265) |
Net cash (used in) provided by financing activities | (144,351) | 56,876 |
(Decrease) increase in cash, cash equivalents and restricted cash | (43,323) | 4,924 |
Cash, cash equivalents and restricted cash at beginning of period | 54,507 | 4,102 |
Cash, cash equivalents and restricted cash at beginning of period | 11,184 | 9,026 |
Supplemental Cash Flow Information: | ||
Interest paid | 27,570 | 28,692 |
Invoices accrued for construction, tenant improvements and other capitalized costs | 6,355 | 12,745 |
Mortgage notes payable assumed upon acquisition (adjusted to fair value) | 12,460 | 13,951 |
Capitalized interest | $ 484 | $ 452 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Business Overview Healthcare Realty Trust Incorporated (the "Company") is a self-managed, self-administered real estate investment trust ("REIT") that integrates owning, leasing, managing, financing, developing and redeveloping income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2017 , the Company had gross investments of approximately $3.6 billion in 197 real estate properties located in 26 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.9 million square feet nationwide. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 . 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, 2016 . 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, 2017 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. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow in connection with proceeds from the sales of certain real estate properties. These sales proceeds will be disbursed as the Company acquires real estate investments under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The carrying amount approximates fair value due to the short term maturity of these investments. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company's Consolidated Balance Sheets to the combined amounts shown on the Company's Consolidated Statements of Cash Flows: (Dollars in thousands) 6/30/2017 12/31/2016 Cash and cash equivalents $ 2,033 $ 5,409 Restricted cash 9,151 49,098 Total cash, cash equivalents and restricted cash $ 11,184 $ 54,507 Reclassifications Condensed Consolidated Statements of Income Certain reclassifications have been made on the Company's Condensed Consolidated Statements of Income. The Company reclassified acquisition and pursuit costs from the general and administrative line item to a separate line item. The acquisition and pursuit costs line item includes direct third party and travel costs related to the Company's pursuit of acquisitions and developments. In addition, the Company combined the line items labeled depreciation and amortization into one line item. These reclassifications are as follows: June 30, 2016 Three Months Ended Six Months Ended (in thousands) As Previously Reported As Reclassified As Previously Reported As Reclassified General and administrative $ 8,129 $ 7,756 $ 18,375 $ 15,828 Acquisition and pursuit costs — 373 — 2,547 Total $ 8,129 $ 8,129 $ 18,375 $ 18,375 Depreciation $ 28,528 $ — $ 56,221 $ — Amortization 2,762 — 5,463 — Depreciation and amortization — 31,290 — 61,684 Total $ 31,290 $ 31,290 $ 61,684 $ 61,684 New Accounting Pronouncements Accounting Standards Update No. 2014-09 and No. 2015-14 In May 2014, the Financial Accounting Standards Board ("FASB") issued 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 plans on adopting this standard by using the full retrospective adoption method beginning on January 1, 2018. The Company's revenue-producing contracts are primarily leases that are not within the scope of this standard. As a result, the Company does not expect the adoption of this standard to have a material impact on the timing and measurement of the Company's leasing revenues. The Company is continuing to evaluate the impact on other revenue sources. However, the Company does expect additional disclosures that are required from the adoption of this standard. 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. The Company expects that all of the leases where the Company is the lessee will be recorded on the Company's balance sheet. 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, then the lease would be classified as an operating lease. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases 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 in the initial stages of evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." This update is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. This update requires that financial statement assets measured at an amortized cost and certain other financial instruments be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. This standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. The Company is in the initial stages of evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2016-15 In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." This update clarifies whether the following items should be classified as operating, investing or financing in the statement of cash flows: (i) debt prepayments and extinguishment costs, (ii) settlement of zero-coupon debt, (iii) settlement of contingent consideration, (iv) insurance proceeds, (v) settlement of corporate-owned life insurance and bank-owned life insurance policies, (vi) distributions from equity method investees, (vii) beneficial interest in securitization transactions and (viii) receipts and payments with aspects of more than one class of cash flows. This standard is effective for the Company for annual and interim periods beginning on January 1, 2018 with early adoption permitted on a retrospective transition method to each period presented. The Company adopted this standard effective January 1, 2017. There was not a material impact on the Company's Consolidated Financial Statements and related notes resulting from the adoption of this standard. Accounting Standards Update No. 2017-01 In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations: Clarifying the Definition of a Business." This update modifies the requirements to meet the definition of a business under Topic 805, "Business Combinations." The amendments provide a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The Company believes that this amendment will result in most of its real estate acquisitions being accounted for as asset acquisitions rather than business combinations. This standard is effective for the Company for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company adopted this standard effective January 1, 2017. The impact to the Consolidated Financial Statements and related notes as a result of the adoption of this standard is primarily related to the difference in the accounting of acquisition costs. When accounting for these costs as a part of an asset acquisition, the Company will be permitted to capitalize the costs. The adoption of this standard did not have a material impact on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2017-04 In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." This update eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds its fair value. This standard is effective for the Company for annual and interim periods beginning after December 15, 2019. The Company does not expect a material impact on the Consolidated Financial Statements and related notes from the adoption of this standard. Accounting Standards Update No. 2017-05 In February 2017, the FASB issued ASU 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets." This update defines an in-substance nonfinancial asset, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sales of real estate, removes exception to the financial asset derecognition model and clarifies the accounting for contributions of nonfinancial assets to joint ventures. This standard is effective for the Company for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company does not expect a material impact on the Consolidated Financial Statements and related notes from the adoption of this standard. Accounting Standards Update No. 2017-09 In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation - Scope of Modification Accounting." This update provides guidance about which changes to the terms and conditions of share-based awards require an entity to apply modification accounting in Topic 718. This standard is effective for the Company for the annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company does not expect a material impact on the Consolidated Financial Statements and related notes from the adoption of this standard. |
Real Estate Investments
Real Estate Investments | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Real Estate Investments | Real Estate Investments 2017 Acquisitions The following table details the Company's acquisitions for the six months ended June 30, 2017 (dollars in millions): Location Type (1) Date Acquired Purchase Price Mortgage (2) Cash (3) Real Other (4) Square St. Paul, Minnesota MOB 3/6/17 $ 13.5 $ — $ 13.5 $ 13.3 $ 0.2 34,608 San Francisco, California MOB 6/12/17 26.8 — 26.8 26.8 — 75,649 Washington, D.C. MOB 6/13/17 24.0 (12.1 ) 12.5 24.8 (0.2 ) 62,379 Total acquisitions $ 64.3 $ (12.1 ) $ 52.8 $ 64.9 $ — 172,636 ______ (1) MOB = medical office building (2) The mortgage note payable assumed in the acquisition does not reflect the fair value adjustments totaling $0.4 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, and intangibles recognized at acquisition. 2017 Dispositions The following table details the Company's dispositions for the six months ended June 30, 2017 (dollars in millions): Location Type (1) Date Sales Price Closing Adjustments Net Net Real Other (3) Gain Square Evansville, Indiana OTH 3/6/17 $ 6.4 $ — $ 6.4 $ 1.1 $ — $ 5.3 29,500 Columbus, Georgia (2) MOB 3/7/17 0.6 — 0.6 0.6 — — 12,000 Las Vegas, Nevada (2) MOB 3/30/17 5.5 (0.7 ) 4.8 2.2 0.3 2.3 18,147 Texas (3 properties) IRF 3/31/17 69.5 (1.6 ) 67.9 46.9 5.2 15.8 169,722 Chicago, Illinois (2) MOB 6/16/17 0.5 (0.1 ) 0.4 0.4 — — 5,100 San Antonio, Texas (2) IRF 6/29/17 14.5 (0.2 ) 14.3 5.1 0.9 8.3 39,786 Roseburg, Oregon MOB 6/29/17 23.2 (0.6 ) 22.6 14.5 0.3 7.8 62,246 Total dispositions $ 120.2 $ (3.2 ) $ 117.0 $ 70.8 $ 6.7 $ 39.5 336,501 ______ (1) OTH = other; MOB = medical office building; IRF = inpatient rehabilitation facility (2) Previously classified as held for sale. (3) Includes straight-line rent receivables, leasing commissions and lease inducements. Subsequent Acquisition On July 31, 2017, the Company acquired a 42,780 square foot medical office building in Los Angeles, California for a purchase price of $16.3 million . Potential Disposition The Company is under contract to sell an off-campus, 79,980 square foot medical office building located in St. Louis, Missouri. The Company's net investment in the property is approximately $7.4 million at June 30, 2017. The sales price of the building will be approximately $2.6 million . In July 2017, the sale became probable based on the expiration of the due diligence period and therefore, the Company reclassified the property to held for sale and recognized a $5.2 million impairment using level one input. Assets Held for Sale At June 30, 2017 and December 31, 2016 , the Company had one and two properties, respectively, classified as held for sale. During the six months ended June 30, 2017, the Company reclassified three properties to held for sale and four properties were sold. A summary of each of the properties reclassified as held for sale is below: • a 78,731 square foot inpatient rehabilitation facility located in Pittsburgh, Pennsylvania reclassified to held for sale in connection with management's decision to sell the property; • a 39,786 square foot inpatient rehabilitation facility located in San Antonio, Texas reclassified to held for sale in connection with management's decision to sell the property. The Company sold this property in the second quarter of 2017 and recognized an $8.3 million gain on the disposition; and • a 5,100 square foot medical office building located in Chicago, Illinois reclassified to held for sale in connection with management's decision to sell the property. In the first quarter of 2017, the Company recorded an impairment charge of $0.3 million using level one inputs. The Company sold this property in the second quarter of 2017 and recognized an immaterial impairment loss on the disposition. The table below reflects the assets and liabilities of the properties classified as held for sale and discontinued operations as of June 30, 2017 and December 31, 2016 : (Dollars in thousands) June 30, December 31, Balance Sheet data: Land $ 1,125 $ 1,362 Buildings, improvements and lease intangibles 18,231 4,410 19,356 5,772 Accumulated depreciation (10,657 ) (2,977 ) Real estate assets held for sale, net 8,699 2,795 Other assets, net (including receivables) 68 297 Assets held for sale and discontinued operations, net $ 8,767 $ 3,092 Accounts payable and accrued liabilities $ 186 $ 22 Other liabilities 213 592 Liabilities of properties held for sale and discontinued operations $ 399 $ 614 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, 2017 and 2016 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2017 2016 2017 2016 Statements of Income data: Revenues Rental income $ — $ — $ — $ — — — — — Expenses Property operating — 19 17 27 — 19 17 27 Other Income (Expense) Interest and other income, net — — — — — — — — Discontinued Operations Loss from discontinued operations — (19 ) (17 ) (27 ) Gain on sales of real estate assets — 7 5 7 Loss from Discontinued Operations $ — $ (12 ) $ (12 ) $ (20 ) |
Notes and Bonds Payable
Notes and Bonds Payable | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 June 30, 2017 Unsecured Credit Facility 7/20 $ 35,000 $ 107,000 2.22 % Unsecured Term Loan Facility, net of issuance costs 2/19 149,609 149,491 2.42 % Senior Notes due 2021, net of discount and issuance costs 1/21 397,483 397,147 5.97 % Senior Notes due 2023, net of discount and issuance costs 4/23 247,499 247,296 3.95 % Senior Notes due 2025, net of discount and issuance costs 5/25 247,930 247,819 4.08 % Mortgage notes payable, net of discounts and issuance costs and including premiums 1/18-5/40 125,625 115,617 5.06 % $ 1,203,146 $ 1,264,370 Changes in Debt Structure On May 1, 2017, the Company repaid in full a mortgage note payable bearing interest at a rate of 6.50% per annum with outstanding principal of $0.2 million . The mortgage note encumbered a 60,476 square foot medical office building located in Minnesota. On June 13, 2017, in connection with the acquisition of a 62,379 square foot medical office property in Washington D.C., the Company assumed a $12.1 million mortgage note payable (excluding a fair value premium adjustment of $0.4 million ). The mortgage note payable has a contractual interest rate of 4.69% per annum (effective rate of 4.27% per annum). |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 , 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, 2017 and 2016 respectively, was as follows: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amount of loss reclassified from accumulated OCI into Interest Expense (effective portion) $ (42 ) $ (42 ) $ (85 ) $ (84 ) 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, 2017 | |
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 finalizing the redevelopment of a medical office building in Nashville, Tennessee, which includes a 70,000 square foot expansion. During the six months ended June 30, 2017, the Company funded approximately $10.3 million on the redevelopment of this property, including approximately $3.1 million related to overages on tenant improvement projects that have yet to be finalized and collected from the tenant. The Company expects to spend an additional $2.2 million throughout the remainder of 2017. Development Activity The Company is developing a 99,957 square foot medical office building in Denver, Colorado. The total development budget is $26.5 million , of which $21.6 million has been spent as of June 30, 2017 . The Company received the certificate of substantial completion on the core and shell in the second quarter of 2017. Tenants are expected to begin taking occupancy in the third quarter of 2017. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity 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, 2017 and the year ended December 31, 2016 : June 30, 2017 December 31, 2016 Balance, beginning of period 116,416,900 101,517,009 Issuance of common stock 41,020 14,063,100 Nonvested share-based awards, net of withheld shares 87,034 836,791 Balance, end of period 116,544,954 116,416,900 Common Stock Authorization On May 2, 2017, the Company's shareholders approved an amendment to the Company's Articles of Incorporation to increase the number of authorized shares of common stock from 150,000,000 to 300,000,000 . At-The-Market Equity Offering Program No shares were sold under this program during the six months ended June 30, 2017. The Company has 5,868,697 authorized shares remaining available to be sold under the current sales agreements as of July 31, 2017 . Common Stock Dividends During the six months ended June 30, 2017 , the Company declared and paid common stock dividends totaling $0.60 per share. On August 1, 2017 , the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on August 31, 2017 to stockholders of record on August 11, 2017 . Accumulated Other Comprehensive Loss The following table represents the changes in balances of each component and the amounts reclassified out of accumulated other comprehensive loss related to the Company during the six months ended June 30, 2017 and 2016 : Forward-starting Interest Rate Swaps (Dollars in thousands) 2017 2016 Beginning balance $ (1,401 ) $ (1,569 ) Amounts reclassified from accumulated other comprehensive loss 85 84 Net accumulated other comprehensive income 85 84 Ending balance $ (1,316 ) $ (1,485 ) 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, 2017 and 2016 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2017 2016 2017 2016 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 116,528,181 105,306,479 116,499,667 103,970,376 Nonvested shares (1,807,082 ) (1,318,730 ) (1,801,448 ) (1,260,457 ) Weighted average Common Shares outstanding—Basic 114,721,099 103,987,749 114,698,219 102,709,919 Weighted average Common Shares outstanding—Basic 114,721,099 103,987,749 114,698,219 102,709,919 Dilutive effect of restricted stock 861,037 691,064 796,283 646,341 Dilutive effect of employee stock purchase plan 92,228 90,732 102,327 114,274 Weighted average Common Shares outstanding—Diluted 115,674,364 104,769,545 115,596,829 103,470,534 Net Income Income from continuing operations $ 25,224 $ 12,157 $ 57,082 $ 21,320 Discontinued operations — (12 ) (12 ) (20 ) Net income $ 25,224 $ 12,145 $ 57,070 $ 21,300 Basic Earnings Per Common Share Income from continuing operations $ 0.22 $ 0.12 $ 0.50 $ 0.21 Discontinued operations 0.00 0.00 0.00 0.00 Net income $ 0.22 $ 0.12 $ 0.50 $ 0.21 Diluted Earnings Per Common Share Income from continuing operations $ 0.22 $ 0.12 $ 0.49 $ 0.21 Discontinued operations 0.00 0.00 0.00 0.00 Net income $ 0.22 $ 0.12 $ 0.49 $ 0.21 Incentive Plans A summary of the activity under the stock-based incentive plans for the three and six months ended June 30, 2017 and 2016 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock-based awards, beginning of period 1,814,039 1,326,746 1,786,497 1,092,262 Granted 23,231 21,374 103,615 321,580 Vested (39,584 ) (36,951 ) (92,426 ) (102,673 ) Stock-based awards, end of period 1,797,686 1,311,169 1,797,686 1,311,169 During the six months ended June 30, 2017 and 2016 , the Company withheld 16,581 and 14,442 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested. No such shares were withheld during the three months ended June 30, 2017. 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, 2017 and 2016 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Outstanding and exercisable, beginning of period 365,618 361,955 316,321 340,958 Granted — — 206,824 198,450 Exercised (7,595 ) (10,839 ) (19,030 ) (37,528 ) Forfeited (13,451 ) (6,208 ) (27,233 ) (13,890 ) Expired — — (132,310 ) (143,082 ) Outstanding and exercisable, end of period 344,572 344,908 344,572 344,908 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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 due to the short term maturity of these investments. Borrowings under the unsecured credit facility due 2020 and unsecured term loan facility due 2019 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates. Senior Notes and Mortgage 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. The table below details the fair values and carrying values for notes and bonds payable at June 30, 2017 and December 31, 2016 . June 30, 2017 December 31, 2016 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,203.1 $ 1,208.3 $ 1,264.4 $ 1,265.1 ______ (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 Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Business Overview | Business Overview Healthcare Realty Trust Incorporated (the "Company") is a self-managed, self-administered real estate investment trust ("REIT") that integrates owning, leasing, managing, financing, developing and redeveloping income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2017 , the Company had gross investments of approximately $3.6 billion in 197 real estate properties located in 26 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.9 million square feet nationwide. |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 . 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, 2016 . 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, 2017 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. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow in connection with proceeds from the sales of certain real estate properties. These sales proceeds will be disbursed as the Company acquires real estate investments under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The carrying amount approximates fair value due to the short term maturity of these investments. |
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 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 plans on adopting this standard by using the full retrospective adoption method beginning on January 1, 2018. The Company's revenue-producing contracts are primarily leases that are not within the scope of this standard. As a result, the Company does not expect the adoption of this standard to have a material impact on the timing and measurement of the Company's leasing revenues. The Company is continuing to evaluate the impact on other revenue sources. However, the Company does expect additional disclosures that are required from the adoption of this standard. 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. The Company expects that all of the leases where the Company is the lessee will be recorded on the Company's balance sheet. 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, then the lease would be classified as an operating lease. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases 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 in the initial stages of evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2016-13 In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." This update is intended to improve financial reporting by requiring timelier recognition of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. This update requires that financial statement assets measured at an amortized cost and certain other financial instruments be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. This standard is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted. The Company is in the initial stages of evaluating the impact from the adoption of this new standard on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2016-15 In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." This update clarifies whether the following items should be classified as operating, investing or financing in the statement of cash flows: (i) debt prepayments and extinguishment costs, (ii) settlement of zero-coupon debt, (iii) settlement of contingent consideration, (iv) insurance proceeds, (v) settlement of corporate-owned life insurance and bank-owned life insurance policies, (vi) distributions from equity method investees, (vii) beneficial interest in securitization transactions and (viii) receipts and payments with aspects of more than one class of cash flows. This standard is effective for the Company for annual and interim periods beginning on January 1, 2018 with early adoption permitted on a retrospective transition method to each period presented. The Company adopted this standard effective January 1, 2017. There was not a material impact on the Company's Consolidated Financial Statements and related notes resulting from the adoption of this standard. Accounting Standards Update No. 2017-01 In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations: Clarifying the Definition of a Business." This update modifies the requirements to meet the definition of a business under Topic 805, "Business Combinations." The amendments provide a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The Company believes that this amendment will result in most of its real estate acquisitions being accounted for as asset acquisitions rather than business combinations. This standard is effective for the Company for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company adopted this standard effective January 1, 2017. The impact to the Consolidated Financial Statements and related notes as a result of the adoption of this standard is primarily related to the difference in the accounting of acquisition costs. When accounting for these costs as a part of an asset acquisition, the Company will be permitted to capitalize the costs. The adoption of this standard did not have a material impact on the Consolidated Financial Statements and related notes. Accounting Standards Update No. 2017-04 In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." This update eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds its fair value. This standard is effective for the Company for annual and interim periods beginning after December 15, 2019. The Company does not expect a material impact on the Consolidated Financial Statements and related notes from the adoption of this standard. Accounting Standards Update No. 2017-05 In February 2017, the FASB issued ASU 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets." This update defines an in-substance nonfinancial asset, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sales of real estate, removes exception to the financial asset derecognition model and clarifies the accounting for contributions of nonfinancial assets to joint ventures. This standard is effective for the Company for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company does not expect a material impact on the Consolidated Financial Statements and related notes from the adoption of this standard. Accounting Standards Update No. 2017-09 In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation - Scope of Modification Accounting." This update provides guidance about which changes to the terms and conditions of share-based awards require an entity to apply modification accounting in Topic 718. This standard is effective for the Company for the annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company does not expect a material impact on the Consolidated Financial Statements and related notes from the adoption of this standard. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company's Consolidated Balance Sheets to the combined amounts shown on the Company's Consolidated Statements of Cash Flows: (Dollars in thousands) 6/30/2017 12/31/2016 Cash and cash equivalents $ 2,033 $ 5,409 Restricted cash 9,151 49,098 Total cash, cash equivalents and restricted cash $ 11,184 $ 54,507 |
Schedule of reclassifications | These reclassifications are as follows: June 30, 2016 Three Months Ended Six Months Ended (in thousands) As Previously Reported As Reclassified As Previously Reported As Reclassified General and administrative $ 8,129 $ 7,756 $ 18,375 $ 15,828 Acquisition and pursuit costs — 373 — 2,547 Total $ 8,129 $ 8,129 $ 18,375 $ 18,375 Depreciation $ 28,528 $ — $ 56,221 $ — Amortization 2,762 — 5,463 — Depreciation and amortization — 31,290 — 61,684 Total $ 31,290 $ 31,290 $ 61,684 $ 61,684 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Acquisitions | The following table details the Company's acquisitions for the six months ended June 30, 2017 (dollars in millions): Location Type (1) Date Acquired Purchase Price Mortgage (2) Cash (3) Real Other (4) Square St. Paul, Minnesota MOB 3/6/17 $ 13.5 $ — $ 13.5 $ 13.3 $ 0.2 34,608 San Francisco, California MOB 6/12/17 26.8 — 26.8 26.8 — 75,649 Washington, D.C. MOB 6/13/17 24.0 (12.1 ) 12.5 24.8 (0.2 ) 62,379 Total acquisitions $ 64.3 $ (12.1 ) $ 52.8 $ 64.9 $ — 172,636 ______ (1) MOB = medical office building (2) The mortgage note payable assumed in the acquisition does not reflect the fair value adjustments totaling $0.4 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, and intangibles recognized at acquisition. |
Schedule of Dispositions | The following table details the Company's dispositions for the six months ended June 30, 2017 (dollars in millions): Location Type (1) Date Sales Price Closing Adjustments Net Net Real Other (3) Gain Square Evansville, Indiana OTH 3/6/17 $ 6.4 $ — $ 6.4 $ 1.1 $ — $ 5.3 29,500 Columbus, Georgia (2) MOB 3/7/17 0.6 — 0.6 0.6 — — 12,000 Las Vegas, Nevada (2) MOB 3/30/17 5.5 (0.7 ) 4.8 2.2 0.3 2.3 18,147 Texas (3 properties) IRF 3/31/17 69.5 (1.6 ) 67.9 46.9 5.2 15.8 169,722 Chicago, Illinois (2) MOB 6/16/17 0.5 (0.1 ) 0.4 0.4 — — 5,100 San Antonio, Texas (2) IRF 6/29/17 14.5 (0.2 ) 14.3 5.1 0.9 8.3 39,786 Roseburg, Oregon MOB 6/29/17 23.2 (0.6 ) 22.6 14.5 0.3 7.8 62,246 Total dispositions $ 120.2 $ (3.2 ) $ 117.0 $ 70.8 $ 6.7 $ 39.5 336,501 ______ (1) OTH = other; MOB = medical office building; IRF = inpatient rehabilitation facility (2) Previously classified as held for sale. (3) Includes straight-line rent receivables, leasing commissions and lease inducements. |
Discontinued Operations and Assets Held for Sale | The table below reflects the assets and liabilities of the properties classified as held for sale and discontinued operations as of June 30, 2017 and December 31, 2016 : (Dollars in thousands) June 30, December 31, Balance Sheet data: Land $ 1,125 $ 1,362 Buildings, improvements and lease intangibles 18,231 4,410 19,356 5,772 Accumulated depreciation (10,657 ) (2,977 ) Real estate assets held for sale, net 8,699 2,795 Other assets, net (including receivables) 68 297 Assets held for sale and discontinued operations, net $ 8,767 $ 3,092 Accounts payable and accrued liabilities $ 186 $ 22 Other liabilities 213 592 Liabilities of properties held for sale and discontinued operations $ 399 $ 614 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, 2017 and 2016 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2017 2016 2017 2016 Statements of Income data: Revenues Rental income $ — $ — $ — $ — — — — — Expenses Property operating — 19 17 27 — 19 17 27 Other Income (Expense) Interest and other income, net — — — — — — — — Discontinued Operations Loss from discontinued operations — (19 ) (17 ) (27 ) Gain on sales of real estate assets — 7 5 7 Loss from Discontinued Operations $ — $ (12 ) $ (12 ) $ (20 ) |
Notes and Bonds Payable (Tables
Notes and Bonds Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 June 30, 2017 Unsecured Credit Facility 7/20 $ 35,000 $ 107,000 2.22 % Unsecured Term Loan Facility, net of issuance costs 2/19 149,609 149,491 2.42 % Senior Notes due 2021, net of discount and issuance costs 1/21 397,483 397,147 5.97 % Senior Notes due 2023, net of discount and issuance costs 4/23 247,499 247,296 3.95 % Senior Notes due 2025, net of discount and issuance costs 5/25 247,930 247,819 4.08 % Mortgage notes payable, net of discounts and issuance costs and including premiums 1/18-5/40 125,625 115,617 5.06 % $ 1,203,146 $ 1,264,370 |
Derivative Financial Instrume20
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and 2016 respectively, was as follows: (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amount of loss reclassified from accumulated OCI into Interest Expense (effective portion) $ (42 ) $ (42 ) $ (85 ) $ (84 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Reconciliation of beginning and ending common stock outstanding | The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2017 and the year ended December 31, 2016 : June 30, 2017 December 31, 2016 Balance, beginning of period 116,416,900 101,517,009 Issuance of common stock 41,020 14,063,100 Nonvested share-based awards, net of withheld shares 87,034 836,791 Balance, end of period 116,544,954 116,416,900 |
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 loss related to the Company during the six months ended June 30, 2017 and 2016 : Forward-starting Interest Rate Swaps (Dollars in thousands) 2017 2016 Beginning balance $ (1,401 ) $ (1,569 ) Amounts reclassified from accumulated other comprehensive loss 85 84 Net accumulated other comprehensive income 85 84 Ending balance $ (1,316 ) $ (1,485 ) |
Earnings (loss) per 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, 2017 and 2016 . Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2017 2016 2017 2016 Weighted average Common Shares outstanding Weighted average Common Shares outstanding 116,528,181 105,306,479 116,499,667 103,970,376 Nonvested shares (1,807,082 ) (1,318,730 ) (1,801,448 ) (1,260,457 ) Weighted average Common Shares outstanding—Basic 114,721,099 103,987,749 114,698,219 102,709,919 Weighted average Common Shares outstanding—Basic 114,721,099 103,987,749 114,698,219 102,709,919 Dilutive effect of restricted stock 861,037 691,064 796,283 646,341 Dilutive effect of employee stock purchase plan 92,228 90,732 102,327 114,274 Weighted average Common Shares outstanding—Diluted 115,674,364 104,769,545 115,596,829 103,470,534 Net Income Income from continuing operations $ 25,224 $ 12,157 $ 57,082 $ 21,320 Discontinued operations — (12 ) (12 ) (20 ) Net income $ 25,224 $ 12,145 $ 57,070 $ 21,300 Basic Earnings Per Common Share Income from continuing operations $ 0.22 $ 0.12 $ 0.50 $ 0.21 Discontinued operations 0.00 0.00 0.00 0.00 Net income $ 0.22 $ 0.12 $ 0.50 $ 0.21 Diluted Earnings Per Common Share Income from continuing operations $ 0.22 $ 0.12 $ 0.49 $ 0.21 Discontinued operations 0.00 0.00 0.00 0.00 Net income $ 0.22 $ 0.12 $ 0.49 $ 0.21 |
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, 2017 and 2016 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock-based awards, beginning of period 1,814,039 1,326,746 1,786,497 1,092,262 Granted 23,231 21,374 103,615 321,580 Vested (39,584 ) (36,951 ) (92,426 ) (102,673 ) Stock-based awards, end of period 1,797,686 1,311,169 1,797,686 1,311,169 |
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, 2017 and 2016 is included in the table below. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Outstanding and exercisable, beginning of period 365,618 361,955 316,321 340,958 Granted — — 206,824 198,450 Exercised (7,595 ) (10,839 ) (19,030 ) (37,528 ) Forfeited (13,451 ) (6,208 ) (27,233 ) (13,890 ) Expired — — (132,310 ) (143,082 ) Outstanding and exercisable, end of period 344,572 344,908 344,572 344,908 |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 . June 30, 2017 December 31, 2016 (Dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Notes and bonds payable (1) $ 1,203.1 $ 1,208.3 $ 1,264.4 $ 1,265.1 ______ (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 Accoun23
Summary of Significant Accounting Policies (Details) ft² in Millions, $ in Billions | Jun. 30, 2017USD ($)ft²stateproperty |
Business Overview: | |
Gross investment amount, total | $ | $ 3.6 |
Number of real estate properties | property | 197 |
Number of states that the Company owns real estate in, whole units | state | 26 |
Square footage of owned real estate properties | 14.5 |
Approximate square feet for which Nationwide property management services provided by company | 10.9 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 2,033 | $ 5,409 | ||
Restricted cash | 9,151 | 49,098 | ||
Total cash, cash equivalents and restricted cash | $ 11,184 | $ 54,507 | $ 9,026 | $ 4,102 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassifications [Line Items] | ||||
General and administrative | $ 8,005 | $ 7,756 | $ 16,699 | $ 15,828 |
Acquisition and pursuit costs | 785 | 373 | 1,371 | 2,547 |
Total | 8,129 | 18,375 | ||
Depreciation | 0 | 0 | ||
Depreciation and amortization | $ 34,823 | 31,290 | $ 69,274 | 61,684 |
Total | 31,290 | 61,684 | ||
As Previously Reported | ||||
Reclassifications [Line Items] | ||||
General and administrative | 8,129 | 18,375 | ||
Acquisition and pursuit costs | 0 | 0 | ||
Total | 8,129 | 18,375 | ||
Depreciation | 28,528 | 56,221 | ||
Amortization | 2,762 | 5,463 | ||
Depreciation and amortization | 0 | 0 | ||
Total | $ 31,290 | $ 61,684 |
Real Estate Investments - Acqui
Real Estate Investments - Acquisitions (Details) - Real Estate Acquisition $ in Millions | Jul. 31, 2017USD ($)ft² | Jun. 13, 2017USD ($)ft² | Jun. 12, 2017USD ($)ft² | Mar. 06, 2017USD ($)ft² | Jun. 30, 2017USD ($)ft² |
Business Acquisition [Line Items] | |||||
Purchase price | $ 64.3 | ||||
Mortgage Note Payable Assumed | (12.1) | ||||
Cash consideration | 52.8 | ||||
Real Estate | 64.9 | ||||
Other | $ 0 | ||||
Square footage | ft² | 172,636 | ||||
Fair value adjustments | $ 0.4 | ||||
MINNESOTA | |||||
Business Acquisition [Line Items] | |||||
Date Acquired | Mar. 6, 2017 | ||||
Purchase price | $ 13.5 | ||||
Mortgage Note Payable Assumed | 0 | ||||
Cash consideration | 13.5 | ||||
Real Estate | 13.3 | ||||
Other | $ 0.2 | ||||
Square footage | ft² | 34,608 | ||||
CALIFORNIA | |||||
Business Acquisition [Line Items] | |||||
Date Acquired | Jun. 12, 2017 | ||||
Purchase price | $ 26.8 | ||||
Mortgage Note Payable Assumed | 0 | ||||
Cash consideration | 26.8 | ||||
Real Estate | 26.8 | ||||
Other | $ 0 | ||||
Square footage | ft² | 75,649 | ||||
DISTRICT OF COLUMBIA | |||||
Business Acquisition [Line Items] | |||||
Date Acquired | Jun. 13, 2017 | ||||
Purchase price | $ 24 | ||||
Mortgage Note Payable Assumed | (12.1) | ||||
Cash consideration | 12.5 | ||||
Real Estate | 24.8 | ||||
Other | $ (0.2) | ||||
Square footage | ft² | 62,379 | ||||
Fair value adjustments | $ 0.4 | ||||
Subsequent Event | CALIFORNIA | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 16.3 | ||||
Square footage | ft² | 42,780 |
Real Estate Investments - Dispo
Real Estate Investments - Dispositions (Details) $ in Millions | Jun. 29, 2017USD ($)ft² | Jun. 16, 2017USD ($)ft² | Mar. 31, 2017USD ($) | Mar. 30, 2017USD ($)ft² | Mar. 07, 2017USD ($)ft² | Mar. 06, 2017USD ($)ft² | Jul. 31, 2017USD ($) | Jun. 30, 2017USD ($)ft² |
Potential Real Estate Disposition | MISSOURI | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Net Real Estate Investment | $ 7.4 | |||||||
Square footage | ft² | 79,980 | |||||||
Real Estate Dispositions | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Sales price | $ 120.2 | |||||||
Closing Adjustments | (3.2) | |||||||
Net proceeds | 117 | |||||||
Net Real Estate Investment | 70.8 | |||||||
Other (including receivables)(3) | 6.7 | |||||||
Gain | $ 39.5 | |||||||
Square footage | ft² | 336,501 | |||||||
Real Estate Dispositions | INDIANA | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Date Disposed | Mar. 6, 2017 | |||||||
Sales price | $ 6.4 | |||||||
Closing Adjustments | 0 | |||||||
Net proceeds | 6.4 | |||||||
Net Real Estate Investment | 1.1 | |||||||
Other (including receivables)(3) | 0 | |||||||
Gain | $ 5.3 | |||||||
Square footage | ft² | 29,500 | |||||||
Real Estate Dispositions | GEORGIA | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Date Disposed | Mar. 7, 2017 | |||||||
Sales price | $ 0.6 | |||||||
Closing Adjustments | 0 | |||||||
Net proceeds | 0.6 | |||||||
Net Real Estate Investment | 0.6 | |||||||
Other (including receivables)(3) | 0 | |||||||
Gain | $ 0 | |||||||
Square footage | ft² | 12,000 | |||||||
Real Estate Dispositions | NEVADA | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Date Disposed | Mar. 30, 2017 | |||||||
Sales price | $ 5.5 | |||||||
Closing Adjustments | (0.7) | |||||||
Net proceeds | 4.8 | |||||||
Net Real Estate Investment | 2.2 | |||||||
Other (including receivables)(3) | 0.3 | |||||||
Gain | $ 2.3 | |||||||
Square footage | ft² | 18,147 | |||||||
Real Estate Dispositions | TEXAS | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Date Disposed | Jun. 29, 2017 | Mar. 31, 2017 | ||||||
Sales price | $ 14.5 | $ 69.5 | ||||||
Closing Adjustments | (0.2) | (1.6) | ||||||
Net proceeds | 14.3 | $ 67.9 | ||||||
Net Real Estate Investment | 5.1 | 46.9 | ||||||
Other (including receivables)(3) | 0.9 | $ 5.2 | ||||||
Gain | $ 8.3 | $ 15.8 | ||||||
Square footage | ft² | 39,786 | 169,722 | ||||||
Real Estate Dispositions | ILLINOIS | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Date Disposed | Jun. 16, 2017 | |||||||
Sales price | $ 0.5 | |||||||
Closing Adjustments | (0.1) | |||||||
Net proceeds | 0.4 | |||||||
Net Real Estate Investment | 0.4 | |||||||
Other (including receivables)(3) | 0 | |||||||
Gain | $ 0 | |||||||
Square footage | ft² | 5,100 | |||||||
Real Estate Dispositions | OREGON | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Date Disposed | Jun. 29, 2017 | |||||||
Sales price | $ 23.2 | |||||||
Closing Adjustments | (0.6) | |||||||
Net proceeds | 22.6 | |||||||
Net Real Estate Investment | 14.5 | |||||||
Other (including receivables)(3) | 0.3 | |||||||
Gain | $ 7.8 | |||||||
Square footage | ft² | 62,246 | |||||||
Forecast | Potential Real Estate Disposition | MISSOURI | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Sales price | $ 2.6 | |||||||
Subsequent Event | Potential Real Estate Disposition | MISSOURI | ||||||||
Real Estate Dispositions [Line Items] | ||||||||
Impairment charge | $ 5.2 |
Real Estate Investments - Asset
Real Estate Investments - Assets Held for Sale (Details) $ in Millions | Jun. 29, 2017USD ($)ft² | Jun. 16, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($)ft²property | Dec. 31, 2016property |
Real Estate [Line Items] | ||||||
Number of properties held for sale | property | 1 | 2 | ||||
Number of properties reclassified to held for sale | property | 3 | |||||
Number of properties sold | property | 4 | |||||
PENNSYLVANIA | Inpatient Rehabilitation Facility | ||||||
Real Estate [Line Items] | ||||||
Area of real estate property held for sale | ft² | 78,731 | |||||
TEXAS | Inpatient Rehabilitation Facility | ||||||
Real Estate [Line Items] | ||||||
Area of real estate property held for sale | ft² | 39,786 | |||||
ILLINOIS | Medical Office Building | ||||||
Real Estate [Line Items] | ||||||
Area of real estate property held for sale | ft² | 5,100 | |||||
Impairment charge | $ 0.3 | |||||
Real Estate Dispositions | ||||||
Real Estate [Line Items] | ||||||
Gain | $ 39.5 | |||||
Real Estate Dispositions | TEXAS | ||||||
Real Estate [Line Items] | ||||||
Gain | $ 8.3 | $ 15.8 | ||||
Real Estate Dispositions | ILLINOIS | ||||||
Real Estate [Line Items] | ||||||
Gain | $ 0 |
Real Estate Investments - Disco
Real Estate Investments - Discontinued Operations and Assets Held for Sale - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet data (as of the period ended): | ||
Land | $ 193,072 | $ 199,672 |
Buildings, improvements and lease intangibles | 3,388,734 | 3,386,480 |
Real estate properties, Total | 3,612,084 | 3,628,221 |
Accumulated depreciation | (864,573) | (840,839) |
Total real estate properties, net | 2,747,511 | 2,787,382 |
Other assets, net (including receivables) | 191,036 | 195,666 |
Assets held for sale and discontinued operations, net | 8,767 | 3,092 |
Liabilities of discontinued operations | 398 | 614 |
Discontinued Operations | ||
Balance Sheet data (as of the period ended): | ||
Land | 1,125 | 1,362 |
Buildings, improvements and lease intangibles | 18,231 | 4,410 |
Real estate properties, Total | 19,356 | 5,772 |
Accumulated depreciation | (10,657) | (2,977) |
Total real estate properties, net | 8,699 | 2,795 |
Other assets, net (including receivables) | 68 | 297 |
Assets held for sale and discontinued operations, net | 8,767 | 3,092 |
Accounts payable and accrued liabilities | 186 | 22 |
Other liabilities | 213 | 592 |
Liabilities of discontinued operations | $ 399 | $ 614 |
Real Estate Investments - Dis30
Real Estate Investments - Discontinued Operations and Assets Held for Sale - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Rental income | $ 104,869 | $ 101,472 | $ 208,957 | $ 200,212 |
Expenses | ||||
Property operating | 38,184 | 36,263 | 76,018 | 71,668 |
Other Income (Expense) | ||||
Interest and other income, net | 77 | 93 | 189 | 179 |
Discontinued Operations | ||||
Loss from discontinued operations | 0 | (19) | (17) | (27) |
Gain on sale of properties | 0 | 7 | 5 | 7 |
LOSS FROM DISCONTINUED OPERATIONS | 0 | (12) | (12) | (20) |
Discontinued Operations | ||||
Revenues | ||||
Rental income | 0 | 0 | 0 | 0 |
Revenues | 0 | 0 | 0 | 0 |
Expenses | ||||
Property operating | 0 | 19 | 17 | 27 |
Total Expenses | 0 | 19 | 17 | 27 |
Other Income (Expense) | ||||
Interest and other income, net | 0 | 0 | 0 | 0 |
Total other income (expense) | 0 | 0 | 0 | 0 |
Discontinued Operations | ||||
Loss from discontinued operations | 0 | (19) | (17) | (27) |
Gain on sale of properties | 0 | 7 | 5 | 7 |
LOSS FROM DISCONTINUED OPERATIONS | $ 0 | $ (12) | $ (12) | $ (20) |
Notes and Bonds Payable (Detail
Notes and Bonds Payable (Details) $ in Thousands | Jun. 13, 2017USD ($)ft² | May 01, 2017USD ($)ft² | Mar. 06, 2017USD ($)ft² | Jun. 30, 2017USD ($)ft² | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 1,203,146 | $ 1,264,370 | |||
Line of Credit | Unsecured Credit Facility Due 2020 | |||||
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 35,000 | 107,000 | |||
Effective interest rate (percent) | 2.22% | ||||
Medium-term Notes | Term Loan Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 149,609 | 149,491 | |||
Effective interest rate (percent) | 2.42% | ||||
Senior Notes | Senior Notes due 2021, net of discount and issuance costs | |||||
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 397,483 | 397,147 | |||
Effective interest rate (percent) | 5.97% | ||||
Senior Notes | Senior Notes due 2023, net of discount and issuance costs | |||||
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 247,499 | 247,296 | |||
Effective interest rate (percent) | 3.95% | ||||
Senior Notes | Senior Notes due 2025, net of discount and issuance costs | |||||
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 247,930 | 247,819 | |||
Effective interest rate (percent) | 4.08% | ||||
Mortgages | |||||
Debt Instrument [Line Items] | |||||
Notes and bonds payable | $ 125,625 | $ 115,617 | |||
Effective interest rate (percent) | 5.06% | ||||
MINNESOTA | Mortgages | 6.5% Mortgage Note Payable | |||||
Debt Instrument [Line Items] | |||||
Mortgage note, interest rate (percent) | 6.50% | ||||
Amount of debt repaid | $ 200 | ||||
Square footage encumbered by mortgage payable (sqft) | ft² | 60,476 | ||||
Real Estate Acquisition | |||||
Debt Instrument [Line Items] | |||||
Square footage | ft² | 172,636 | ||||
Mortgage notes payable assumed | $ 12,100 | ||||
Fair value adjustments | 400 | ||||
Real Estate Acquisition | MINNESOTA | |||||
Debt Instrument [Line Items] | |||||
Square footage | ft² | 34,608 | ||||
Mortgage notes payable assumed | $ 0 | ||||
Real Estate Acquisition | DISTRICT OF COLUMBIA | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate (percent) | 4.27% | ||||
Mortgage note, interest rate (percent) | 4.69% | ||||
Square footage | ft² | 62,379 | ||||
Mortgage notes payable assumed | $ 12,100 | ||||
Fair value adjustments | $ 400 |
Derivative Financial Instrume32
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months | $ (200) | $ (200) | ||
Interest Expense | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Amount of loss reclassified from accumulated OCI into Interest Expense (effective portion) | $ (42) | $ (42) | $ (85) | $ (84) |
Commitments and Contingencies -
Commitments and Contingencies - Construction Activity (Details) $ in Millions | Jun. 30, 2017USD ($)ft² |
Other Commitments [Line Items] | |
Approximate Square Feet | ft² | 14,500,000 |
Medical Office Building Expansion | TENNESSEE | |
Other Commitments [Line Items] | |
Approximate Square Feet | ft² | 70,000 |
Total amount funded | $ 10.3 |
Tenant improvements included in construction funded | 3.1 |
Construction activity, estimated remaining fundings | $ 2.2 |
Medical Office Building | COLORADO | |
Other Commitments [Line Items] | |
Approximate Square Feet | ft² | 99,957 |
Total amount funded | $ 21.6 |
Estimated total investment | $ 26.5 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 116,417,000 | |
Balance, end of period | 116,545,000 | 116,417,000 |
Common Stock | ||
Reconciliation of the beginning and ending common stock outstanding | ||
Balance, beginning of period | 116,416,900 | 101,517,009 |
Issuance of common stock | 41,020 | 14,063,100 |
Nonvested share-based awards, net of withheld shares | 87,034 | 836,791 |
Balance, end of period | 116,544,954 | 116,416,900 |
Stockholders' Equity (Stock Tra
Stockholders' Equity (Stock Transactions - Narrative) (Details) - $ / shares | Aug. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jul. 31, 2017 | May 02, 2017 | May 01, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||||
Common stock, authorized shares | 300,000,000 | 300,000,000 | 150,000,000 | ||||||
Dividends declared per common share, during the period (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 | |||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, authorized shares | 300,000,000 | 150,000,000 | |||||||
At The Market Equity Offering Program | |||||||||
Class of Stock [Line Items] | |||||||||
Issuance of common stock (shares) | 0 | ||||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared per common share, during the period (in dollars per share) | $ 0.30 | ||||||||
Subsequent Event | At The Market Equity Offering Program | |||||||||
Class of Stock [Line Items] | |||||||||
Number of authorized shares remaining under offering program (shares) | 5,868,697 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in accumulated other comprehensive income (Details) - Forward-starting Interest Rate Swaps - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (1,401) | $ (1,569) |
Amounts reclassified from accumulated other comprehensive loss | 85 | 84 |
Net accumulated other comprehensive income | 85 | 84 |
Ending balance | $ (1,316) | $ (1,485) |
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 | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted average Common Shares outstanding | ||||
Weighted average Common Shares outstanding | 116,528,181 | 105,306,479 | 116,499,667 | 103,970,376 |
Nonvested shares | (1,807,082) | (1,318,730) | (1,801,448) | (1,260,457) |
Weighted average Common Shares—Basic | 114,721,099 | 103,987,749 | 114,698,219 | 102,709,919 |
Dilutive effect of restricted stock | 861,037 | 691,064 | 796,283 | 646,341 |
Dilutive effect of employee stock purchase plan | 92,228 | 90,732 | 102,327 | 114,274 |
Weighted average Common Shares outstanding—Diluted | 115,674,364 | 104,769,545 | 115,596,829 | 103,470,534 |
Net Income | ||||
Income from continuing operations | $ 25,224 | $ 12,157 | $ 57,082 | $ 21,320 |
Discontinued operations | 0 | (12) | (12) | (20) |
NET INCOME | $ 25,224 | $ 12,145 | $ 57,070 | $ 21,300 |
Basic Earnings (Loss) Per Common Share | ||||
Income from continuing operations (in dollars per share) | $ 0.22 | $ 0.12 | $ 0.50 | $ 0.21 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | 0.22 | 0.12 | 0.50 | 0.21 |
Diluted Earnings (Loss) Per Common Share | ||||
Income from continuing operations (in dollars per share) | 0.22 | 0.12 | 0.49 | 0.21 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | $ 0.22 | $ 0.12 | $ 0.49 | $ 0.21 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock Incentive Plan - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of the activity under the incentive plans | ||||
Stock-based awards, beginning of period (shares) | 1,814,039 | 1,326,746 | 1,786,497 | 1,092,262 |
Granted (shares) | 23,231 | 21,374 | 103,615 | 321,580 |
Vested (shares) | (39,584) | (36,951) | (92,426) | (102,673) |
Stock-based awards, end of period (shares) | 1,797,686 | 1,311,169 | 1,797,686 | 1,311,169 |
Restricted Stock | ||||
Summary of the activity under the incentive plans | ||||
Shares withheld to pay estimated withholding taxes | 0 | 16,581 | 14,442 |
Stockholders' Equity - Summar39
Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of the Employee Stock Purchase Plan activity | ||||
Outstanding and exercisable, beginning of period (shares) | 365,618 | 361,955 | 316,321 | 340,958 |
Granted (shares) | 0 | 0 | 206,824 | 198,450 |
Exercised (shares) | (7,595) | (10,839) | (19,030) | (37,528) |
Forfeited (shares) | (13,451) | (6,208) | (27,233) | (13,890) |
Expired (shares) | 0 | 0 | (132,310) | (143,082) |
Outstanding and exercisable, end of period (shares) | 344,572 | 344,908 | 344,572 | 344,908 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Value | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,203.1 | $ 1,264.4 |
Fair Value | ||
Derivative [Line Items] | ||
Notes and bonds payable | $ 1,208.3 | $ 1,265.1 |