Healthcare Realty Trust 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-11852
Entity Registrant Name	HEALTHCARE REALTY TRUST INCORPORATED
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	62-1507028
Entity Address, Address Line One	3310 West End Avenue, Suite 700
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37203
City Area Code	615
Local Phone Number	269-8175
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	HR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		136,054,024
Entity Central Index Key	0000899749
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Real estate properties
Land	$ 330,840	$ 289,751
Buildings, improvements and lease intangibles	4,014,740	3,986,326
Personal property	10,962	10,538
Construction in progress	0	48,731
Land held for development	24,647	24,647
Total real estate properties	4,381,189	4,359,993
Less accumulated depreciation and amortization	(1,198,444)	(1,121,102)
Total real estate properties, net	3,182,745	3,238,891
Cash and cash equivalents	121,992	657
Restricted cash	60,644	0
Assets held for sale, net	20,051	37
Operating lease right-of-use assets	123,807	126,177
Financing lease right-of-use assets	19,776	12,667
Other assets, net	182,436	185,426
Total assets	3,711,451	3,563,855
Liabilities
Notes and bonds payable	1,554,395	1,414,069
Accounts payable and accrued liabilities	79,528	78,517
Liabilities of assets held for sale	548	145
Operating lease liabilities	91,466	91,574
Financing lease liabilities	18,697	18,037
Other liabilities	66,442	61,504
Total liabilities	1,811,076	1,663,846
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 shares authorized; 136,054 and 134,706 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	1,361	1,347
Additional paid-in capital	3,532,130	3,485,003
Accumulated other comprehensive loss	(19,267)	(6,175)
Cumulative net income attributable to common stockholders	1,215,362	1,127,304
Cumulative dividends	(2,829,211)	(2,707,470)
Total stockholders' equity	1,900,375	1,900,009
Total liabilities and stockholders' equity	$ 3,711,451	$ 3,563,855
Preferred Stock, Shares Outstanding	0	0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
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	300,000,000
Common stock, issued (shares)	136,054,000	134,706,000
Common stock, outstanding (shares)	136,054,000	134,706,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Rental income	$ 123,384	$ 117,740	$ 368,385	$ 342,787
Other operating	1,868	2,059	5,364	5,987
Revenues	125,252	119,799	373,749	348,774
Expenses
Property operating	50,171	46,777	146,305	133,790
General and administrative	7,299	10,802	23,498	27,157
Acquisition and pursuit costs	440	501	1,621	1,227
Depreciation and amortization	47,143	45,137	142,331	131,725
Expenses	105,053	103,217	313,755	293,899
Other Income (Expense)
Gain on sales of real estate assets	2,177	200	70,395	5,065
Interest expense	(14,154)	(14,181)	(42,556)	(41,619)
Impairment of real estate assets				(5,610)
Interest and other income (expense), net	8		225	(736)
Total other income (expense)	(11,969)	(13,981)	28,064	(42,900)
Net Income	$ 8,230	$ 2,601	$ 88,058	$ 11,975
Basic earnings per common share (in dollars per share)	$ 0.06	$ 0.02	$ 0.65	$ 0.08
Diluted earnings per common share (in dollars per share)	$ 0.06	$ 0.02	$ 0.65	$ 0.08
Weighted average common shares outstanding - basic	134,309,417	128,090,074	133,662,140	126,570,895
Weighted average common shares outstanding - diluted	134,357,227	128,168,684	133,736,169	126,656,585
Dividends declared, per common share, during the period (in dollars per share)	$ 0.30	$ 0.30	$ 0.90	$ 0.90
Revenue, Product and Service [Extensible List]	us-gaap:ServiceMember	us-gaap:ServiceMember	us-gaap:ServiceMember	us-gaap:ServiceMember

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net income	$ 8,230	$ 2,601	$ 88,058	$ 11,975
Interest rate swaps
Reclassification adjustments for losses included in net income (interest expense)	1,101	60	2,367	74
Losses arising during the period on interest rate swaps	74	2,341	15,459	7,642
Other comprehensive income (loss)	1,027	(2,281)	(13,092)	(7,568)
Comprehensive income	9,257	320	74,966	4,407
Interest Rate Swaps
Interest rate swaps
Losses arising during the period on interest rate swaps	(74)	(2,341)	(11,192)	(7,642)
Treasury Rate Locks
Interest rate swaps
Losses arising during the period on interest rate swaps	$ 0	$ 0	$ (4,267)	$ 0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity (Unaudited) Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Cumulative Net Income	Cumulative Dividends
Beginning balance at Dec. 31, 2018	$ 1,716,642	$ 1,253	$ 3,180,284	$ (902)	$ 1,088,119	$ (2,552,112)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	192,475	61	192,414
Common stock redemptions	(3,267)	(1)	(3,266)
Share-based compensation	10,141	1	10,140
Net income	11,975				11,975
Reclassification adjustments for losses included in net income (interest expense)	74			74
Losses arising during the period on interest rate swaps and treasury rate locks	(7,642)			(7,642)
Dividends to common stockholders (in usd per share)	(115,237)					(115,237)
Ending balance at Sep. 30, 2019	1,805,161	1,314	3,379,572	(8,470)	1,100,094	(2,667,349)
Beginning balance at Jun. 30, 2019	1,769,443	1,292	3,305,344	(6,189)	1,097,493	(2,628,497)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	71,814	22	71,792
Common stock redemptions	(2,695)		(2,695)
Share-based compensation	5,131		5,131
Net income	2,601				2,601
Reclassification adjustments for losses included in net income (interest expense)	60			60
Losses arising during the period on interest rate swaps and treasury rate locks	(2,341)			(2,341)
Dividends to common stockholders (in usd per share)	(38,852)					(38,852)
Ending balance at Sep. 30, 2019	1,805,161	1,314	3,379,572	(8,470)	1,100,094	(2,667,349)
Beginning balance at Dec. 31, 2019	1,900,009	1,347	3,485,003	(6,175)	1,127,304	(2,707,470)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	40,490	13	40,477
Common stock redemptions	(798)		(798)
Share-based compensation	7,449		7,448
Net income	88,058				88,058
Reclassification adjustments for losses included in net income (interest expense)	2,367			2,367
Losses arising during the period on interest rate swaps and treasury rate locks	(15,459)			(15,459)
Dividends to common stockholders (in usd per share)	(121,741)					(121,741)
Ending balance at Sep. 30, 2020	1,900,375	1,361	3,532,130	(19,267)	1,215,362	(2,829,211)
Beginning balance at Jun. 30, 2020	1,929,361	1,360	3,529,559	(20,294)	1,207,132	(2,788,396)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	127	1	126
Share-based compensation	2,445		2,445
Net income	8,230				8,230
Reclassification adjustments for losses included in net income (interest expense)	1,101			1,101
Losses arising during the period on interest rate swaps and treasury rate locks	(74)			(74)
Dividends to common stockholders (in usd per share)	(40,815)					(40,815)
Ending balance at Sep. 30, 2020	$ 1,900,375	$ 1,361	$ 3,532,130	$ (19,267)	$ 1,215,362	$ (2,829,211)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividend per share to common Stockholders (in dollars per share)	$ 0.30	$ 0.30	$ 0.90	$ 0.90

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
OPERATING ACTIVITIES
Net income	$ 88,058	$ 11,975
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	142,331	131,725
Other amortization	3,409	2,279
Share-based compensation	7,449	10,141
Amortization of straight-line rent receivable (lessor)	(2,722)	(1,833)
Amortization of straight-line rent on operating leases (lessee)	1,122	1,159
Gain on sales of real estate assets	(70,395)	(5,065)
Impairment of real estate assets		5,610
Loss from unconsolidated joint ventures	194	16
Distributions from unconsolidated joint ventures	193	277
Proceeds from disposition of sales-type lease properties	244,454	0
Changes in operating assets and liabilities:
Other assets, including right-of-use-assets	(965)	(6,740)
Accounts payable and accrued liabilities	5,098	3,220
Other liabilities	(6,662)	5,709
Net cash provided by operating activities	411,564	158,473
INVESTING ACTIVITIES
Acquisitions of real estate	(199,162)	(271,575)
Development of real estate	(2,941)	(19,152)
Additional long-lived assets	(62,707)	(45,902)
Proceeds from sales of real estate assets	4,905	14,151
Net cash used in investing activities	(259,905)	(322,478)
FINANCING ACTIVITIES
Net (repayments) borrowings on unsecured credit facility	(293,000)	60,000
Borrowings on term loan	150,000	50,000
Borrowings of notes and bonds payable	298,995
Repayments on notes and bonds payable	(32,704)	(12,663)
Dividends paid	(121,741)	(115,237)
Net proceeds from issuance of common stock	40,296	192,514
Common stock redemptions	(892)	(2,343)
Settlement of treasury rate locks	(4,267)
Debt issuance and assumption costs	(3,057)	(4,589)
Payments made on finance leases	(3,310)	(249)
Net cash provided by financing activities	30,320	167,433
Increase in cash, cash equivalents and restricted cash	181,979	3,428
Cash and cash equivalents at beginning of period	657	8,381
Cash, cash equivalents and restricted cash at end of period	182,636	11,809
Supplemental Cash Flow Information
Interest paid	39,165	37,946
Invoices accrued for construction, tenant improvements and other capitalized costs	12,709	10,702
Mortgage notes payable assumed upon acquisition (adjusted to fair value)	19,269
Capitalized interest	$ 913	$ 999

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of significant accounting policies	Business Overview Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2020, the Company had gross investments of approximately $4.3 billion in 211 real estate properties located in 24 states totaling approximately 15.5 million square feet. The Company provided leasing and property management services to approximately 11.9 million square feet nationwide. Square footage and property count disclosures in these Notes to the Company's Condensed Consolidated Financial Statements are unaudited. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("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, 2019. All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. 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, 2020 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, such as the impact of the COVID-19 pandemic. 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. The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at September 30, 2020. There can be no assurance that COVID-19 will not have a future material adverse impact on the financial results and business operations of the Company. COVID-19 Update Since being reported in December 2019, COVID-19 has spread globally, including to every state in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. In response to the COVID-19 pandemic, all of the states and cities in which the Company owns properties, manages properties, and/or has development or redevelopment projects instituted quarantines, restrictions on travel, “shelter in place” rules, restrictions on types of businesses that may continue to operate, and/or restrictions on the types of construction projects that may continue. As a result, a number of the Company's tenants temporarily closed their offices or clinical space or operated on a reduced basis in response to government requirements or recommendations. Many of these restrictions have been lifted, but could be reimposed. In response to these disruptions, the Company provided some of its tenants with deferred rent arrangements. Such arrangements were made primarily in the second quarter of 2020, and less than $0.1 million of deferred rent arrangements originated in the third quarter. Through November 2, 2020, the Company has collected more than 99% of second and third quarter 2020 aggregate tenant billings. The Company has collected 96% of total scheduled deferral payments due in the third quarter of 2020. In addition, the Company has remaining various forms of rent deferrals outstanding representing approximately $1.2 million, or less than 1% of second and third quarter 2020 aggregate tenant billings. The tenant deferral agreements generally require the deferred amounts to be repaid by the fourth quarter of 2020. For accounting purposes, in accordance with ASC 842: Leases, normally a company would be required to assess a lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied which would require a company to reassess the classification of the lease. However, in light of the COVID-19 pandemic in which many leases are being modified, the Financial Accounting Standards Board (the "FASB") and U.S. Securities and Exchange Commission (the "SEC") have provided relief that will allow companies to make a policy election as to whether they treat COVID-19 related lease amendments as a provision included in the pre-concession arrangement, and therefore, not a lease modification, or to treat the lease amendment as a modification. The Company has elected to use this relief where applicable and therefore will have no change in the current classification of its leases in connection with many of the leases impacted by negotiations with its tenants. In order to be considered COVID-19 related, cash flows must be substantially the same or less than those prior to the concession. If the cash flows are substantially the same or less, there are two methods to potentially account for such rent deferrals under the relief. The first would be as if no changes to the lease contract were made. Under that accounting, a lessor would increase its lease receivable and a lessee would increase its accounts payable as receivables/payments accrue. In its income statement, a lessor would continue to recognize revenue during the deferral period. The second method would be to treat the deferred payments as variable lease payments (i.e., revenue recognized when cash received). The Company has elected the first method described above, which results in the revenue being recognized on an accrual basis. If tenants are unable to timely repay deferred rent, or repay at all, request additional rent deferrals or abatements, decide not to renew leases, or renew leases at lower cash leasing spreads, the impact on the Company’s results of operations and financial condition could be material. In the second quarter of 2020, the Company recognized approximately $0.7 million general reserve against the deferred rent balance. Following positive collection trends in the third quarter of 2020, the Company released approximately $0.3 million of the general reserve. As of September 30, 2020, the Company had a remaining general reserve of $0.4 million against an approximate $1.7 million deferred rent balance. Given the daily evolution of the COVID-19 pandemic and the global response to curb its spread, the Company is not able to estimate the effects of the COVID-19 pandemic on its results of operations, financial condition, or liquidity for the fiscal year 2020. The Company continues to evaluate the impact of various forms of governmental assistance that may be or become available to the Company or its tenants. Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, rental lease guaranty income, management fee income and other miscellaneous income. Below is a detail of the amounts by category: THREE MONTHS ENDED NINE MONTHS ENDED in thousands 2020 2019 2020 2019 Type of Revenue Parking income $ 1,764 $ 1,935 $ 5,042 $ 5,538 Rental lease guaranty — — — 128 Management fee income 62 69 209 201 Miscellaneous 42 55 113 120 $ 1,868 $ 2,059 $ 5,364 $ 5,987 The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle. 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 from the sale of a property in Oklahoma. These proceeds have been or will be disbursed as the Company acquires real estate investments in like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company's Condensed Consolidated Balance Sheets to the combined amounts shown on the Company's Condensed Consolidated Statements of Cash Flows: In thousands December 31, 2019 Cash and cash equivalents $ 121,992 $ 657 Restricted cash 60,644 — Total cash, cash equivalents and restricted cash $ 182,636 $ 657 New Accounting Pronouncements 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. Operating lease receivables, representing the majority of the Company's receivables, are not within the scope of the new standard. The Company adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. 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 adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. Accounting Standards Update No. 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)

Real Estate Investments

Real Estate Investments	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Real Estate Investments	Real Estate Investments 2020 Acquisitions The following table details the Company's acquisitions for the nine months ended September 30, 2020: Dollars in millions TYPE 1 DATE ACQUIRED PURCHASE PRICE MORTGAGE NOTES PAYABLE CASH 2 REAL OTHER 3 SQUARE FOOTAGE Los Angeles, CA MOB 1/3/20 $ 42.0 $ (19.3) $ 22.8 $ 42.4 $ (0.3) 86,986 Atlanta, GA MOB 2/13/20 12.0 — 11.8 12.1 (0.3) 64,624 Raleigh, NC MOB 2/25/20 6.3 — 6.5 6.5 — 15,964 Colorado Springs, CO MOB 3/9/20 8.2 — 8.3 8.6 (0.3) 34,210 Denver, CO 4 MOB 3/13/20 33.5 — 33.2 34.0 (0.8) 136,994 San Diego, CA MOB 7/1/20 16.7 — 16.7 16.9 (0.2) 46,083 Los Angeles, CA MOB 7/17/20 35.0 — 37.7 37.7 — 49,785 Seattle, WA MOB 7/23/20 11.0 — 10.9 11.3 (0.4) 21,309 Atlanta, GA MOB 7/31/20 20.5 — 21.6 21.3 0.3 48,145 Houston, TX MOB 9/24/20 11.0 — 10.9 11.0 (0.1) 40,235 Los Angeles, CA MOB 9/28/20 14.0 — 14.0 13.9 0.1 24,252 Total real estate acquisitions $ 210.2 $ (19.3) $ 194.4 $ 215.7 $ (2.0) 568,587 Land acquisition 5 1.6 — 1.7 1.7 — — Land acquisition 6 1.0 — 1.1 1.1 — — $ 212.8 $ (19.3) $ 197.2 $ 218.5 $ (2.0) 568,587 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 The Company acquired land parcels under four existing buildings (previously ground leased). 6 The Company acquired a land parcel under an existing building (previously ground leased). The building and land were sold on September 30, 2020. Subsequent Acquisition On October 7, 2020 the Company acquired a 36,720 square foot medical office building in Colorado Springs, CO for a purchase price of $8.9 million. 2020 Real Estate Asset Dispositions The following table details the Company's dispositions for the nine months ended September 30, 2020: Dollars in millions TYPE 1 Date Sale Closing Adjustments Net Proceeds Net Real Estate Investment Other (including receivables) 2 Gain/(Impairment) Square Footage (Unaudited) Springfield, MO 3 SF 7/30/20 $ 138.0 $ — $ 138.0 $ 92.4 $ 3.9 $ 41.7 186,000 Oklahoma City, OK 3 MOB 7/30/20 106.5 — 106.5 76.8 3.1 26.6 200,000 Miami, FL MOB 9/30/20 5.0 (0.2) 4.8 2.6 0.1 2.1 26,000 Total dispositions $ 249.5 $ (0.2) $ 249.3 $ 171.8 $ 7.1 $ 70.4 412,000 1. MOB = medical office building; SF = surgical facility 2. Includes straight-line rent receivables, leasing commissions and lease inducements. 3. In the second quarter of 2020, the Company entered into agreements to sell two single-tenant net leased properties, resulting in a lease modification and classification change from operating to sales-type. Assets Held for Sale In September 2020, the Company reclassified four medical office buildings and a land parcel to assets held for sale upon acceptance of an offer from a third party to purchase the properties under a single sales agreement. The contractual sales price of $23.0 million is greater than the current net investment of approximately $18.1 million. As of September 30, 2020 and December 31, 2019, the Company had four and zero properties, respectively, classified as assets held for sale. The table below reflects the assets and liabilities of the properties classified as held for sale as of September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, 2020 December 31, 2019 Balance Sheet data: Land $ 1,664 $ — Building, improvements and lease intangibles 26,871 — Personal property 39 — 28,574 — Accumulated depreciation (10,443) — Real estate assets held for sale, net 18,131 — Other assets, net 1,920 37 Assets held for sale, net $ 20,051 $ 37 Accounts payable and accrued liabilities $ 437 $ 37 Other liabilities 111 108 Liabilities of assets held for sale $ 548 $ 145

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Leases Lessor Accounting The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2035. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and nine months ended September 30, 2020 was $123.4 million and $368.4 million, respectively. In May 2020, the Company and Mercy Health negotiated the sale of two single-tenant net leased properties, a medical office building in Oklahoma and an orthopedic specialty hospital in Missouri, for $244.5 million. The sale was structured through amendments to the leases to allow for the early exercise of existing purchase options. The amendments resulted in the application of lease modification accounting under ASC Topic 842, which resulted in lease classification changes from operating to sales-type. During the second quarter, the Company derecognized the real estate assets on the Condensed Consolidated Balance Sheets and recognized the net investment in sales-type leases, resulting in a gain of $68.3 million. The Company disposed of these properties on July 30, 2020. Tabular Disclosure of the Components of Sales-Type Leases The table below presents the components of sale-type leases for the three and nine months ended September 30, 2020: SALES-TYPE LEASES In thousands three months ended nine months ended September 30, 2020 Profit recognized at commencement date $ — $ 68,267 Gain on sales of real estate assets Interest income 1,454 3,007 Rental income Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of September 30, 2020 were as follows: In thousands Operating 2020 $ 93,722 2021 352,341 2022 307,166 2023 261,187 2024 200,578 2025 and thereafter 555,264 $ 1,770,258 Lessee Accounting As of September 30, 2020, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of September 30, 2020, the Company had 103 properties totaling 8.7 million square feet that were held under ground leases. Some of the ground leases' renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on the CPI. The Company had 42 prepaid ground leases as of September 30, 2020. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.2 million of the Company’s rental expense for the three months ended September 30, 2020 and 2019, respectively and $0.5 million and $0.4 million for the nine months ended September 30, 2020 and 2019, respectively. The Company’s future lease payments (primarily for its 61 non-prepaid ground leases) as of September 30, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 1,008 $ 143 2021 4,844 930 2022 4,875 783 2023 4,913 793 2024 4,969 815 2025 and thereafter 307,665 88,808 Total undiscounted lease payments 328,274 92,272 Discount (236,808) (73,575) Lease liabilities $ 91,466 $ 18,697 The following table provides details of the Company's total lease expense for the three and nine months ended September 30, 2020 and 2019: THREE MONTHS ENDED NINE MONTHS ENDED In thousands 2020 2019 2020 2019 Operating lease cost Operating lease expense $ 1,180 $ 1,169 $ 3,534 $ 3,448 Variable lease expense 1,066 845 2,664 2,380 Finance lease cost Amortization of right-of-use assets 88 51 236 101 Interest on lease liabilities 245 196 722 392 Total lease expense $ 2,579 $ 2,261 $ 7,156 $ 6,321 Other information Operating cash flows outflows related to operating leases $ 1,440 $ 1,313 $ 5,412 $ 5,461 Financing cash flows outflows related to financing leases $ 143 $ 107 $ 3,310 $ 249 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ 7,212 $ 14,294 Weighted-average remaining lease term (excluding renewal options) - operating leases 48.9 49.7 Weighted-average remaining lease term (excluding renewal options) -finance leases 64.7 70.1 Weighted-average discount rate - operating leases 5.7 % 5.7 % Weighted-average discount rate - finance leases 5.4 % 5.5 %
Leases	Leases Lessor Accounting The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2035. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company's leases typically have escalators that are either based on a stated percentage or an index such as CPI (consumer price index). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and nine months ended September 30, 2020 was $123.4 million and $368.4 million, respectively. In May 2020, the Company and Mercy Health negotiated the sale of two single-tenant net leased properties, a medical office building in Oklahoma and an orthopedic specialty hospital in Missouri, for $244.5 million. The sale was structured through amendments to the leases to allow for the early exercise of existing purchase options. The amendments resulted in the application of lease modification accounting under ASC Topic 842, which resulted in lease classification changes from operating to sales-type. During the second quarter, the Company derecognized the real estate assets on the Condensed Consolidated Balance Sheets and recognized the net investment in sales-type leases, resulting in a gain of $68.3 million. The Company disposed of these properties on July 30, 2020. Tabular Disclosure of the Components of Sales-Type Leases The table below presents the components of sale-type leases for the three and nine months ended September 30, 2020: SALES-TYPE LEASES In thousands three months ended nine months ended September 30, 2020 Profit recognized at commencement date $ — $ 68,267 Gain on sales of real estate assets Interest income 1,454 3,007 Rental income Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of September 30, 2020 were as follows: In thousands Operating 2020 $ 93,722 2021 352,341 2022 307,166 2023 261,187 2024 200,578 2025 and thereafter 555,264 $ 1,770,258 Lessee Accounting As of September 30, 2020, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of September 30, 2020, the Company had 103 properties totaling 8.7 million square feet that were held under ground leases. Some of the ground leases' renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on the CPI. The Company had 42 prepaid ground leases as of September 30, 2020. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.2 million of the Company’s rental expense for the three months ended September 30, 2020 and 2019, respectively and $0.5 million and $0.4 million for the nine months ended September 30, 2020 and 2019, respectively. The Company’s future lease payments (primarily for its 61 non-prepaid ground leases) as of September 30, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 1,008 $ 143 2021 4,844 930 2022 4,875 783 2023 4,913 793 2024 4,969 815 2025 and thereafter 307,665 88,808 Total undiscounted lease payments 328,274 92,272 Discount (236,808) (73,575) Lease liabilities $ 91,466 $ 18,697 The following table provides details of the Company's total lease expense for the three and nine months ended September 30, 2020 and 2019: THREE MONTHS ENDED NINE MONTHS ENDED In thousands 2020 2019 2020 2019 Operating lease cost Operating lease expense $ 1,180 $ 1,169 $ 3,534 $ 3,448 Variable lease expense 1,066 845 2,664 2,380 Finance lease cost Amortization of right-of-use assets 88 51 236 101 Interest on lease liabilities 245 196 722 392 Total lease expense $ 2,579 $ 2,261 $ 7,156 $ 6,321 Other information Operating cash flows outflows related to operating leases $ 1,440 $ 1,313 $ 5,412 $ 5,461 Financing cash flows outflows related to financing leases $ 143 $ 107 $ 3,310 $ 249 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ 7,212 $ 14,294 Weighted-average remaining lease term (excluding renewal options) - operating leases 48.9 49.7 Weighted-average remaining lease term (excluding renewal options) -finance leases 64.7 70.1 Weighted-average discount rate - operating leases 5.7 % 5.7 % Weighted-average discount rate - finance leases 5.4 % 5.5 %

Notes and Bonds Payable

Notes and Bonds Payable	9 Months Ended
	Sep. 30, 2020
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 Dollars in thousands 9/30/2020 12/31/2019 $700 million Unsecured Credit Facility 5/23 $ — $ 293,000 N/A $200 million Unsecured Term Loan Facility, net of issuance costs 1 5/24 199,180 199,013 1.99 % $150 million Unsecured Term Loan due 2026 2 6/26 149,455 — 3.14 % Senior Notes due 2023, net of discount and issuance costs 4/23 248,863 248,540 3.95 % Senior Notes due 2025, net of discount and issuance costs 3 5/25 248,711 248,522 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 296,003 295,651 3.84 % Senior Notes due 2030, net of discount and issuance costs 4 3/30 296,384 — 2.71 % Mortgage notes payable, net of discounts and issuance costs and including premiums 1/21-4/27 115,799 129,343 4.38 % $ 1,554,395 $ 1,414,069 1 The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points). 2 The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 160 basis points). 3 The effective interest rate includes the impact of the $1.7 million settlement of a forward-starting interest rate swap that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. 4 The effective interest rate includes the impact of the $4.3 million settlement of forward interest rate hedges that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets. Changes in Debt Structure On February 3, 2020, the Company repaid in full a mortgage note payable bearing interest at a rate of 6.10% per annum with an outstanding principal of $5.9 million. The mortgage note encumbered a 68,860 square foot property in Oklahoma. On March 4, 2020, the Company issued $300.0 million of unsecured senior notes due 2030 (the "Senior Notes due 2030") in a registered public offering. The Senior Notes due 2030 bear interest at 2.40%, payable semi-annually on March 15 and September 15, beginning September 15, 2020, and are due on March 15, 2030, unless redeemed earlier by the Company. The notes were issued at a discount of approximately $1.0 million and the Company incurred approximately $2.8 million in debt issuance costs. Concurrent with this transaction, the Company settled two treasury rate locks for $4.3 million. Inclusive of the discount, debt issuance costs and settlement of the treasury rate locks, the effective interest rate was 2.71%. The Senior Notes due 2030 have various financial covenants that are required to be met on a quarterly and annual basis. On May 4, 2020, the Company repaid in full a mortgage note payable bearing interest at a rate of 5.74% per annum with an outstanding principal of $0.3 million. The mortgage note encumbered an 83,318 square foot property in Iowa. On May 29, 2020, the Company borrowed $150.0 million pursuant to its unsecured term loan due 2026. On June 2, 2020, the Company repaid in full a mortgage note payable bearing interest at a rate of 6.44% per annum with an outstanding principal of $12.6 million. The mortgage note encumbered a 67,510 square foot property in Washington. On June 25, 2020, the Company repaid in full three mortgage notes bearing interest at rates of 5.63%, 6.63% and 6.88% per annum with outstanding principal of $0.5 million, $2.8 million, and $7.0 million, respectively. The mortgage notes encumbered a 60,476 square foot property in Minnesota. Subsequent Changes in Debt Structure On October 1, 2020, the Company repaid in full a mortgage note payable bearing interest at a rate of 5.47% per annum with an outstanding principal of $4.2 million. The mortgage note encumbered a 40,171 square foot property in Georgia.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative financial instruments	Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities 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 derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. On February 24 and 25, 2020, the Company entered into two treasury rate locks totaling $75.0 million and $40.0 million, respectively. The treasury rate locks were settled for an aggregate amount of $4.3 million on March 4, 2020 concurrent with the Company's issuance of its Senior Notes due 2030. The settlement will be amortized over the 10-year term of the notes. As of September 30, 2020, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: DERIVATIVE INSTRUMENT NUMBER OF INSTRUMENTS NOTIONAL AMOUNT Interest rate swaps 8 $175.0 Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of September 30, 2020. BALANCE AT SEPTEMBER 30, 2020 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ 14,460 Total derivatives designated as hedging instruments $ 14,460 Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of cash flow hedge accounting on AOCI during the three and nine months ended September 30, 2020 and 2019 related to the Company's outstanding interest rate swaps. LOSS RECOGNIZED IN (GAIN) LOSS RECLASSIFIED FROM In thousands 2020 2019 2020 2019 Interest rate swaps $ 74 $ 2,341 Interest expense $ 952 $ 18 Settled treasury hedges — — Interest expense 107 — Settled interest rate swaps — — Interest expense 42 42 $ 74 $ 2,341 Total interest expense $ 1,101 $ 60 LOSS RECOGNIZED IN (GAIN) LOSS RECLASSIFIED FROM In thousands 2020 2019 2020 2019 Interest rate swaps $ 11,192 $ 7,642 Interest expense $ 2,012 $ (52) Settled treasury hedges 4,267 — Interest expense 229 — Settled interest rate swaps — — Interest expense 126 126 $ 15,459 $ 7,642 Total interest expense $ 2,367 $ 74 The Company estimates that $4.4 million will be reclassified from AOCI to interest expense over the next 12 months. Credit-risk-related Contingent Features The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of September 30, 2020, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $15.1 million. As of September 30, 2020, the Company has not posted any collateral related to these agreements and was not in breach of any agreement.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
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 initiated the redevelopment of a 110,883 square foot medical office building in Memphis, Tennessee ("Memphis Redevelopment") in December 2019. As of September 30, 2020, the Company funded approximately $5.7 million in project costs, excluding the purchase price of $8.7 million for the land and building. The building will continue to operate with in-place leases during construction. The core and shell portion of the Memphis Redevelopment is expected to be completed in the first quarter of 2021, with construction of tenant spaces to be completed throughout the remainder of 2021. Development Activity In the first quarter of 2020, the Company completed the construction of the core and shell of a 151,031 square foot medical office building in Seattle, Washington. As of September 30, 2020, the Company had funded approximately $59.1 million towards the development and additional tenant improvements. The Company expects to fund an additional amount of approximately $5.0 million for additional tenant improvements associated with this project. The first tenant commenced rent payment in the first quarter of 2020.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
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 nine months ended September 30, 2020 and the year ended December 31, 2019: SEPTEMBER 30, 2020 DECEMBER 31, 2019 Balance, beginning of period 134,706,154 125,279,455 Issuance of common stock 1,292,324 9,251,440 Nonvested share-based awards, net of withheld shares 55,462 175,259 Balance, end of period 136,053,940 134,706,154 At-The-Market Equity Offering Program On February 14, 2020, the Company entered into sales agreements with six investment banks to allow sales under its at-the-market equity offering program of up to an aggregate of $500.0 million of common stock. The Company sold 1,268,237 shares under the Company's at-the market equity offering program during the nine months ended September 30, 2020. The sales generated $39.9 million in net proceeds at prices to the public ranging from $30.50 to $36.15 per share (weighted average of $31.86 per share). The sales occurred during the following time periods: • During the first quarter of 2020, the Company sold 196,250 shares generating approximately $7.0 million in net proceeds at prices to the public ranging from $33.00 to $36.15 per share (weighted average of $36.09 per share). • During the second quarter of 2020, the Company sold 1,071,987 shares generating approximately $32.9 million in net proceeds at prices to the public ranging from $30.50 to $31.29 per share (weighted average of $31.08 per share). In addition, the Company has entered into three forward equity agreements totaling 3.6 million shares at a weighted average price of $31.30 per share: • In the second quarter of 2020, the Company entered into a forward equity agreement for a total of 1,579,371 shares at a weighted average price of $31.66 per share, subject to adjustments as provided in the forward equity agreements. This agreement matures in June 2021. • In the third quarter of 2020, the Company entered into a forward equity agreement for a total of 764,472 shares at a weighted average price of $31.84 per share, subject to adjustments as provided in the forward equity agreements. This agreement matures in July 2021. • In the fourth quarter of 2020, the Company entered into a forward equity agreement for a total of 1,235,129 shares at a weighted average price of $30.52 per share, subject to adjustments as provided in the forward equity agreements. This agreement matures in October 2021. After taking into account the forward equity contracts discussed above, the Company has approximately $347.6 million remaining available to be sold under the current sales agreements at the date of this filing. Common Stock Dividends During the nine months ended September 30, 2020, the Company declared and paid common stock dividends totaling $0.90 per share. On November 3, 2020, the Company declared a quarterly common stock dividend in the amount of $0.30 per share payable on December 1, 2020 to stockholders of record on November 16, 2020. Earnings Per Common Share The Company uses the two-class method of computing net earnings per common shares. The Company's nonvested share-based awards are considered participating securities pursuant to the two-class method. During the nine months ended September 30, 2020, the Company entered into forward sale agreements to sell approximately 2.3 million shares of common stock through the Company's at-the-market equity offering program. The Company considered the accounting guidance governing financial instruments and derivatives to account for these agreements and concluded that it was not a liability as it did not embody obligations to repurchase our shares of common stock nor did it embody obligations to issue a variable number of shares for which the monetary value was predominately fixed, varying with something other than the fair value of the shares, or varying inversely in relation to the shares. In addition, the Company evaluated whether the agreements met the derivative and hedging guidance scope exception to be accounted for as an equity instrument and concluded that the agreements can be classified as equity. The Company used the treasury method to determine the dilution from the forward equity agreements during the period of time prior to settlement. The number of weighted-average shares outstanding used in the computation of earnings per common share for the three and nine months ended September 30, 2020 included the effect from the assumed issuance of 2.3 million shares of common stock pursuant to the settlement of the forward equity agreements at the contractual price, less the assumed repurchase of the common stock at the average market price using the proceeds of approximately $72.7 million, adjusted for costs to borrow. For the three and nine months ended September 30, 2020, 137,757 and 51,133 weighted-average incremental shares of common stock were excluded from the computation of weighted-average common shares outstanding - diluted, as the impact was anti-dilutive. The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2020 and 2019. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, Dollars in thousands, except per share data 2020 2019 2020 2019 Weighted average common shares outstanding Weighted average common shares outstanding 136,048,781 129,865,985 135,393,798 128,348,638 Non-vested shares (1,739,364) (1,775,911) (1,731,658) (1,777,743) Weighted average common shares outstanding - basic 134,309,417 128,090,074 133,662,140 126,570,895 Weighted average common shares outstanding - basic 134,309,417 128,090,074 133,662,140 126,570,895 Dilutive effect of forward equity shares — — — — Dilutive effect of employee stock purchase plan 47,810 78,610 74,029 85,690 Weighted average common shares outstanding - diluted 134,357,227 128,168,684 133,736,169 126,656,585 Net Income $ 8,230 $ 2,601 $ 88,058 $ 11,975 Dividends paid on nonvested share-based awards (522) (534) (1,561) (1,603) Net income applicable to common stockholders $ 7,708 $ 2,067 $ 86,497 $ 10,372 Basic earnings per common share - net income $ 0.06 $ 0.02 $ 0.65 $ 0.08 Diluted earnings per common share - net income $ 0.06 $ 0.02 $ 0.65 $ 0.08 Incentive Plans A summary of the activity under the Company's share-based incentive plans for the three and nine months ended September 30, 2020 and 2019 is included in the table below. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2020 2019 2020 2019 Share-based awards, beginning of period 1,739,258 1,778,134 1,754,066 1,769,863 Granted 188 — 79,025 89,767 Vested 1 — (204,548) (93,645) (286,044) Share-based awards, end of period 1,739,446 1,573,586 1,739,446 1,573,586 1 The Company's former Executive Chairman, David R. Emery, died on September 30, 2019 resulting in the accelerated vesting of 204,548 outstanding nonvested share-based awards. During the nine months ended September 30, 2020 and 2019, the Company withheld 23,563 and 100,036 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested. In addition to the share-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 nine months ended September 30, 2020 and 2019 is included in the table below. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2020 2019 2020 2019 Outstanding and exercisable, beginning of period 361,719 363,218 332,659 328,533 Granted — — 212,716 235,572 Exercised (3,504) (9,927) (17,871) (28,943) Forfeited (6,659) (11,762) (36,154) (51,559) Expired — — (139,794) (142,074) Outstanding and exercisable, end of period 351,556 341,529 351,556 341,529

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2020
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 and the Term Loans Due 2024 and 2026 - 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. • Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates. The table below details the fair values and carrying values for notes and bonds payable at September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 1,554.4 $ 1,621.7 $ 1,414.1 $ 1,425.8 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Business overview	Business OverviewHealthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2020, the Company had gross investments of approximately $4.3 billion in 211 real estate properties located in 24 states totaling approximately 15.5 million square feet. The Company provided leasing and property management services to approximately 11.9 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 ("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, 2019. All material intercompany transactions and balances have been eliminated in consolidation. This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. 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, 2020 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, such as the impact of the COVID-19 pandemic.
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. The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at September 30, 2020. There can be no assurance that COVID-19 will not have a future material adverse impact on the financial results and business operations of the Company. COVID-19 Update Since being reported in December 2019, COVID-19 has spread globally, including to every state in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. In response to the COVID-19 pandemic, all of the states and cities in which the Company owns properties, manages properties, and/or has development or redevelopment projects instituted quarantines, restrictions on travel, “shelter in place” rules, restrictions on types of businesses that may continue to operate, and/or restrictions on the types of construction projects that may continue. As a result, a number of the Company's tenants temporarily closed their offices or clinical space or operated on a reduced basis in response to government requirements or recommendations. Many of these restrictions have been lifted, but could be reimposed. In response to these disruptions, the Company provided some of its tenants with deferred rent arrangements. Such arrangements were made primarily in the second quarter of 2020, and less than $0.1 million of deferred rent arrangements originated in the third quarter. Through November 2, 2020, the Company has collected more than 99% of second and third quarter 2020 aggregate tenant billings. The Company has collected 96% of total scheduled deferral payments due in the third quarter of 2020. In addition, the Company has remaining various forms of rent deferrals outstanding representing approximately $1.2 million, or less than 1% of second and third quarter 2020 aggregate tenant billings. The tenant deferral agreements generally require the deferred amounts to be repaid by the fourth quarter of 2020. For accounting purposes, in accordance with ASC 842: Leases, normally a company would be required to assess a lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied which would require a company to reassess the classification of the lease. However, in light of the COVID-19 pandemic in which many leases are being modified, the Financial Accounting Standards Board (the "FASB") and U.S. Securities and Exchange Commission (the "SEC") have provided relief that will allow companies to make a policy election as to whether they treat COVID-19 related lease amendments as a provision included in the pre-concession arrangement, and therefore, not a lease modification, or to treat the lease amendment as a modification. The Company has elected to use this relief where applicable and therefore will have no change in the current classification of its leases in connection with many of the leases impacted by negotiations with its tenants. In order to be considered COVID-19 related, cash flows must be substantially the same or less than those prior to the concession. If the cash flows are substantially the same or less, there are two methods to potentially account for such rent deferrals under the relief. The first would be as if no changes to the lease contract were made. Under that accounting, a lessor would increase its lease receivable and a lessee would increase its accounts payable as receivables/payments accrue. In its income statement, a lessor would continue to recognize revenue during the deferral period. The second method would be to treat the deferred payments as variable lease payments (i.e., revenue recognized when cash received). The Company has elected the first method described above, which results in the revenue being recognized on an accrual basis. If tenants are unable to timely repay deferred rent, or repay at all, request additional rent deferrals or abatements, decide not to renew leases, or renew leases at lower cash leasing spreads, the impact on the Company’s results of operations and financial condition could be material. In the second quarter of 2020, the Company recognized approximately $0.7 million general reserve against the deferred rent balance. Following positive collection trends in the third quarter of 2020, the Company released approximately $0.3 million of the general reserve. As of September 30, 2020, the Company had a remaining general reserve of $0.4 million against an approximate $1.7 million deferred rent balance. Given the daily evolution of the COVID-19 pandemic and the global response to curb its spread, the Company is not able to estimate the effects of the COVID-19 pandemic on its results of operations, financial condition, or liquidity for the fiscal year 2020. The Company continues to evaluate the impact of various forms of governmental assistance that may be or become available to the Company or its tenants.
Revenue from contract with customers (topic 606)	Revenue from Contracts with Customers (Topic 606) The Company recognizes certain revenue under the core principle of Topic 606. This requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance. Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, rental lease guaranty income, management fee income and other miscellaneous income. Below is a detail of the amounts by category: THREE MONTHS ENDED NINE MONTHS ENDED in thousands 2020 2019 2020 2019 Type of Revenue Parking income $ 1,764 $ 1,935 $ 5,042 $ 5,538 Rental lease guaranty — — — 128 Management fee income 62 69 209 201 Miscellaneous 42 55 113 120 $ 1,868 $ 2,059 $ 5,364 $ 5,987 The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle.
Cash, cash equivalents and restricted cash	Cash, Cash Equivalents and Restricted CashCash and cash equivalents includes short-term investments with original maturities of three months or less when purchased. Restricted cash includes cash held in escrow from the sale of a property in Oklahoma. These proceeds have been or will be disbursed as the Company acquires real estate investments in like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).
New accounting pronouncements	New Accounting Pronouncements 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. Operating lease receivables, representing the majority of the Company's receivables, are not within the scope of the new standard. The Company adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. 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 adopted this standard as of January 1, 2020. There was not a material impact to the Condensed Consolidated Financial Statements resulting from the adoption of this standard. Accounting Standards Update No. 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Disaggreation of revenue	Below is a detail of the amounts by category: THREE MONTHS ENDED NINE MONTHS ENDED in thousands 2020 2019 2020 2019 Type of Revenue Parking income $ 1,764 $ 1,935 $ 5,042 $ 5,538 Rental lease guaranty — — — 128 Management fee income 62 69 209 201 Miscellaneous 42 55 113 120 $ 1,868 $ 2,059 $ 5,364 $ 5,987
Cash, cash equivalents and restricted cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company's Condensed Consolidated Balance Sheets to the combined amounts shown on the Company's Condensed Consolidated Statements of Cash Flows: In thousands December 31, 2019 Cash and cash equivalents $ 121,992 $ 657 Restricted cash 60,644 — Total cash, cash equivalents and restricted cash $ 182,636 $ 657

Real Estate Investments (Tables

Real Estate Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Summary of acquisitions	The following table details the Company's acquisitions for the nine months ended September 30, 2020: Dollars in millions TYPE 1 DATE ACQUIRED PURCHASE PRICE MORTGAGE NOTES PAYABLE CASH 2 REAL OTHER 3 SQUARE FOOTAGE Los Angeles, CA MOB 1/3/20 $ 42.0 $ (19.3) $ 22.8 $ 42.4 $ (0.3) 86,986 Atlanta, GA MOB 2/13/20 12.0 — 11.8 12.1 (0.3) 64,624 Raleigh, NC MOB 2/25/20 6.3 — 6.5 6.5 — 15,964 Colorado Springs, CO MOB 3/9/20 8.2 — 8.3 8.6 (0.3) 34,210 Denver, CO 4 MOB 3/13/20 33.5 — 33.2 34.0 (0.8) 136,994 San Diego, CA MOB 7/1/20 16.7 — 16.7 16.9 (0.2) 46,083 Los Angeles, CA MOB 7/17/20 35.0 — 37.7 37.7 — 49,785 Seattle, WA MOB 7/23/20 11.0 — 10.9 11.3 (0.4) 21,309 Atlanta, GA MOB 7/31/20 20.5 — 21.6 21.3 0.3 48,145 Houston, TX MOB 9/24/20 11.0 — 10.9 11.0 (0.1) 40,235 Los Angeles, CA MOB 9/28/20 14.0 — 14.0 13.9 0.1 24,252 Total real estate acquisitions $ 210.2 $ (19.3) $ 194.4 $ 215.7 $ (2.0) 568,587 Land acquisition 5 1.6 — 1.7 1.7 — — Land acquisition 6 1.0 — 1.1 1.1 — — $ 212.8 $ (19.3) $ 197.2 $ 218.5 $ (2.0) 568,587 1 MOB = medical office building. 2 Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition. 3 Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition. 4 Includes three properties. 5 The Company acquired land parcels under four existing buildings (previously ground leased). 6 The Company acquired a land parcel under an existing building (previously ground leased). The building and land were sold on September 30, 2020. Subsequent Acquisition On October 7, 2020 the Company acquired a 36,720 square foot medical office building in Colorado Springs, CO for a purchase price of $8.9 million.
Real estate dispositions	The following table details the Company's dispositions for the nine months ended September 30, 2020: Dollars in millions TYPE 1 Date Sale Closing Adjustments Net Proceeds Net Real Estate Investment Other (including receivables) 2 Gain/(Impairment) Square Footage (Unaudited) Springfield, MO 3 SF 7/30/20 $ 138.0 $ — $ 138.0 $ 92.4 $ 3.9 $ 41.7 186,000 Oklahoma City, OK 3 MOB 7/30/20 106.5 — 106.5 76.8 3.1 26.6 200,000 Miami, FL MOB 9/30/20 5.0 (0.2) 4.8 2.6 0.1 2.1 26,000 Total dispositions $ 249.5 $ (0.2) $ 249.3 $ 171.8 $ 7.1 $ 70.4 412,000 1. MOB = medical office building; SF = surgical facility 2. Includes straight-line rent receivables, leasing commissions and lease inducements. 3. In the second quarter of 2020, the Company entered into agreements to sell two single-tenant net leased properties, resulting in a lease modification and classification change from operating to sales-type.
Schedule of assets and liabilities held for sale	The table below reflects the assets and liabilities of the properties classified as held for sale as of September 30, 2020 and December 31, 2019: (Dollars in thousands) September 30, 2020 December 31, 2019 Balance Sheet data: Land $ 1,664 $ — Building, improvements and lease intangibles 26,871 — Personal property 39 — 28,574 — Accumulated depreciation (10,443) — Real estate assets held for sale, net 18,131 — Other assets, net 1,920 37 Assets held for sale, net $ 20,051 $ 37 Accounts payable and accrued liabilities $ 437 $ 37 Other liabilities 111 108 Liabilities of assets held for sale $ 548 $ 145

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Components of Sales-type Leases	The table below presents the components of sale-type leases for the three and nine months ended September 30, 2020: SALES-TYPE LEASES In thousands three months ended nine months ended September 30, 2020 Profit recognized at commencement date $ — $ 68,267 Gain on sales of real estate assets Interest income 1,454 3,007 Rental income
Future Minimum Operating Lease Payments Receivable	Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of September 30, 2020 were as follows: In thousands Operating 2020 $ 93,722 2021 352,341 2022 307,166 2023 261,187 2024 200,578 2025 and thereafter 555,264 $ 1,770,258
Future Minimum Operating Lease Payments	The Company’s future lease payments (primarily for its 61 non-prepaid ground leases) as of September 30, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 1,008 $ 143 2021 4,844 930 2022 4,875 783 2023 4,913 793 2024 4,969 815 2025 and thereafter 307,665 88,808 Total undiscounted lease payments 328,274 92,272 Discount (236,808) (73,575) Lease liabilities $ 91,466 $ 18,697
Future Minimum Financing Lease Payments	The Company’s future lease payments (primarily for its 61 non-prepaid ground leases) as of September 30, 2020 were as follows: In thousands OPERATING FINANCING 2020 $ 1,008 $ 143 2021 4,844 930 2022 4,875 783 2023 4,913 793 2024 4,969 815 2025 and thereafter 307,665 88,808 Total undiscounted lease payments 328,274 92,272 Discount (236,808) (73,575) Lease liabilities $ 91,466 $ 18,697
Lease Cost	The following table provides details of the Company's total lease expense for the three and nine months ended September 30, 2020 and 2019: THREE MONTHS ENDED NINE MONTHS ENDED In thousands 2020 2019 2020 2019 Operating lease cost Operating lease expense $ 1,180 $ 1,169 $ 3,534 $ 3,448 Variable lease expense 1,066 845 2,664 2,380 Finance lease cost Amortization of right-of-use assets 88 51 236 101 Interest on lease liabilities 245 196 722 392 Total lease expense $ 2,579 $ 2,261 $ 7,156 $ 6,321 Other information Operating cash flows outflows related to operating leases $ 1,440 $ 1,313 $ 5,412 $ 5,461 Financing cash flows outflows related to financing leases $ 143 $ 107 $ 3,310 $ 249 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ — $ 7,212 $ 14,294 Weighted-average remaining lease term (excluding renewal options) - operating leases 48.9 49.7 Weighted-average remaining lease term (excluding renewal options) -finance leases 64.7 70.1 Weighted-average discount rate - operating leases 5.7 % 5.7 % Weighted-average discount rate - finance leases 5.4 % 5.5 %

Notes and Bonds Payable (Tables

Notes and Bonds Payable (Tables)	9 Months Ended
	Sep. 30, 2020
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 Dollars in thousands 9/30/2020 12/31/2019 $700 million Unsecured Credit Facility 5/23 $ — $ 293,000 N/A $200 million Unsecured Term Loan Facility, net of issuance costs 1 5/24 199,180 199,013 1.99 % $150 million Unsecured Term Loan due 2026 2 6/26 149,455 — 3.14 % Senior Notes due 2023, net of discount and issuance costs 4/23 248,863 248,540 3.95 % Senior Notes due 2025, net of discount and issuance costs 3 5/25 248,711 248,522 4.08 % Senior Notes due 2028, net of discount and issuance costs 1/28 296,003 295,651 3.84 % Senior Notes due 2030, net of discount and issuance costs 4 3/30 296,384 — 2.71 % Mortgage notes payable, net of discounts and issuance costs and including premiums 1/21-4/27 115,799 129,343 4.38 % $ 1,554,395 $ 1,414,069 1 The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points). 2 The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 160 basis points). 3 The effective interest rate includes the impact of the $1.7 million settlement of a forward-starting interest rate swap that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of cash flow hedges included in accumulated other comprehensive income (loss)	As of September 30, 2020, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: DERIVATIVE INSTRUMENT NUMBER OF INSTRUMENTS NOTIONAL AMOUNT Interest rate swaps 8 $175.0 The table below presents the effect of cash flow hedge accounting on AOCI during the three and nine months ended September 30, 2020 and 2019 related to the Company's outstanding interest rate swaps. LOSS RECOGNIZED IN (GAIN) LOSS RECLASSIFIED FROM In thousands 2020 2019 2020 2019 Interest rate swaps $ 74 $ 2,341 Interest expense $ 952 $ 18 Settled treasury hedges — — Interest expense 107 — Settled interest rate swaps — — Interest expense 42 42 $ 74 $ 2,341 Total interest expense $ 1,101 $ 60 LOSS RECOGNIZED IN (GAIN) LOSS RECLASSIFIED FROM In thousands 2020 2019 2020 2019 Interest rate swaps $ 11,192 $ 7,642 Interest expense $ 2,012 $ (52) Settled treasury hedges 4,267 — Interest expense 229 — Settled interest rate swaps — — Interest expense 126 126 $ 15,459 $ 7,642 Total interest expense $ 2,367 $ 74
Schedule of derivative instruments in statement of financial position, fair value	The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of September 30, 2020. BALANCE AT SEPTEMBER 30, 2020 In thousands BALANCE SHEET LOCATION FAIR VALUE Derivatives designated as hedging instruments Interest rate swaps Other liabilities $ 14,460 Total derivatives designated as hedging instruments $ 14,460

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
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 nine months ended September 30, 2020 and the year ended December 31, 2019: SEPTEMBER 30, 2020 DECEMBER 31, 2019 Balance, beginning of period 134,706,154 125,279,455 Issuance of common stock 1,292,324 9,251,440 Nonvested share-based awards, net of withheld shares 55,462 175,259 Balance, end of period 136,053,940 134,706,154
Earnings (loss) per share	The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2020 and 2019. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, Dollars in thousands, except per share data 2020 2019 2020 2019 Weighted average common shares outstanding Weighted average common shares outstanding 136,048,781 129,865,985 135,393,798 128,348,638 Non-vested shares (1,739,364) (1,775,911) (1,731,658) (1,777,743) Weighted average common shares outstanding - basic 134,309,417 128,090,074 133,662,140 126,570,895 Weighted average common shares outstanding - basic 134,309,417 128,090,074 133,662,140 126,570,895 Dilutive effect of forward equity shares — — — — Dilutive effect of employee stock purchase plan 47,810 78,610 74,029 85,690 Weighted average common shares outstanding - diluted 134,357,227 128,168,684 133,736,169 126,656,585 Net Income $ 8,230 $ 2,601 $ 88,058 $ 11,975 Dividends paid on nonvested share-based awards (522) (534) (1,561) (1,603) Net income applicable to common stockholders $ 7,708 $ 2,067 $ 86,497 $ 10,372 Basic earnings per common share - net income $ 0.06 $ 0.02 $ 0.65 $ 0.08 Diluted earnings per common share - net income $ 0.06 $ 0.02 $ 0.65 $ 0.08
Summary of the activity under the incentive plan	A summary of the activity under the Company's share-based incentive plans for the three and nine months ended September 30, 2020 and 2019 is included in the table below. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2020 2019 2020 2019 Share-based awards, beginning of period 1,739,258 1,778,134 1,754,066 1,769,863 Granted 188 — 79,025 89,767 Vested 1 — (204,548) (93,645) (286,044) Share-based awards, end of period 1,739,446 1,573,586 1,739,446 1,573,586
Summary of employee stock purchase plan activity	A summary of the activity under the Purchase Plan for the three and nine months ended September 30, 2020 and 2019 is included in the table below. THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2020 2019 2020 2019 Outstanding and exercisable, beginning of period 361,719 363,218 332,659 328,533 Granted — — 212,716 235,572 Exercised (3,504) (9,927) (17,871) (28,943) Forfeited (6,659) (11,762) (36,154) (51,559) Expired — — (139,794) (142,074) Outstanding and exercisable, end of period 351,556 341,529 351,556 341,529

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
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 September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE Notes and bonds payable 1 $ 1,554.4 $ 1,621.7 $ 1,414.1 $ 1,425.8 1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) $ in Thousands, ft² in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2020USD ($)ft²propertystate	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)ft²propertystate
Business Overview:
Gross investment amount, total	$ 4,300,000		$ 4,300,000
Number of real estate properties | property	211		211
Number of states that the company owns real estate in, whole units | state	24		24
Square footage of owned real estate properties | ft²	15.5		15.5
Approximate square feet for which Nationwide property management services provided by company | ft²	11.9		11.9
Deferred rent arrangements for the quarter	$ 100
Aggregate second quarter 2020 tenant billings collected (percent)			99.00%
Scheduled deferral payments collected in the third quarter (percent)	96.00%
Deferred rent receivable, net	$ 1,200		$ 1,200
Second and third quarter 2020 tenant billings deferred under rent deferral agreements (percent)			1.00%
Deferred rent reserve recognized in the period	300	$ 700
Deferred rent, general reserve	400		$ 400
Deferred rent receivable, gross	$ 1,700		$ 1,700

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Type of Revenue	$ 1,868	$ 2,059	$ 5,364	$ 5,987
Parking income
Disaggregation of Revenue [Line Items]
Type of Revenue	1,764	1,935	5,042	5,538
Rental lease guaranty
Disaggregation of Revenue [Line Items]
Type of Revenue	0	0	0	128
Management fee income
Disaggregation of Revenue [Line Items]
Type of Revenue	62	69	209	201
Miscellaneous
Disaggregation of Revenue [Line Items]
Type of Revenue	$ 42	$ 55	$ 113	$ 120

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 121,992	$ 657
Restricted cash	60,644	0
Total cash, cash equivalents and restricted cash	$ 182,636	$ 657	$ 11,809	$ 8,381

Real Estate Investments - Acqui

Real Estate Investments - Acquisitions (Details) $ in Thousands	Oct. 07, 2020USD ($)ft²	Sep. 28, 2020USD ($)ft²	Sep. 24, 2020USD ($)ft²	Jul. 31, 2020USD ($)ft²	Jul. 23, 2020USD ($)ft²	Jul. 17, 2020USD ($)ft²	Jul. 01, 2020USD ($)ft²	Mar. 13, 2020USD ($)ft²	Mar. 09, 2020USD ($)ft²property	Feb. 25, 2020USD ($)ft²	Feb. 13, 2020USD ($)ft²	Jan. 03, 2020USD ($)ft²	Sep. 30, 2020USD ($)ft²land_parcel
Business Acquisition [Line Items]
Number of land parcels acquired | land_parcel													4
Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price													$ 210,200
Mortgage notes payable													(19,300)
Cash consideration													194,400
Real estate													215,700
Other													$ (2,000)
Square footage | ft²													568,587
Land Acquisition
Business Acquisition [Line Items]
Purchase price													$ 1,600
Mortgage notes payable													0
Cash consideration													1,700
Real estate													1,700
Other													$ 0
Square footage | ft²													0
Land Acquisition, Subsequently Disposed
Business Acquisition [Line Items]
Purchase price													$ 1,000
Mortgage notes payable													0
Cash consideration													1,100
Real estate													1,100
Other													$ 0
Square footage | ft²													0
Real Estate and Land Acquisitions
Business Acquisition [Line Items]
Purchase price													$ 212,800
Mortgage notes payable													(19,300)
Cash consideration													197,200
Real estate													218,500
Other													$ (2,000)
Square footage | ft²													568,587
Medical office building | Los Angeles, CA | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price		$ 14,000				$ 35,000						$ 42,000
Mortgage notes payable		0				0						(19,300)
Cash consideration		14,000				37,700						22,800
Real estate		13,900				37,700						42,400
Other		$ 100				$ 0						$ (300)
Square footage | ft²		24,252				49,785						86,986
Medical office building | Atlanta, GA | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price				$ 20,500							$ 12,000
Mortgage notes payable				0							0
Cash consideration				21,600							11,800
Real estate				21,300							12,100
Other				$ 300							$ (300)
Square footage | ft²				48,145							64,624
Medical office building | Raleigh, NC | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price										$ 6,300
Mortgage notes payable										0
Cash consideration										6,500
Real estate										6,500
Other										$ 0
Square footage | ft²										15,964
Medical office building | Colorado Springs, CO | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price									$ 8,200
Mortgage notes payable									0
Cash consideration									8,300
Real estate									8,600
Other									$ (300)
Square footage | ft²									34,210
Medical office building | Denver, CO | Total real estate acquisitions
Business Acquisition [Line Items]
Number of properties acquired | property									3
Purchase price								$ 33,500
Mortgage notes payable								0
Cash consideration								33,200
Real estate								34,000
Other								$ (800)
Square footage | ft²								136,994
Medical office building | San Diego, CA | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price							$ 16,700
Mortgage notes payable							0
Cash consideration							16,700
Real estate							16,900
Other							$ (200)
Square footage | ft²							46,083
Medical office building | Seattle, WA | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price					$ 11,000
Mortgage notes payable					0
Cash consideration					10,900
Real estate					11,300
Other					$ (400)
Square footage | ft²					21,309
Medical office building | Houston, TX | Total real estate acquisitions
Business Acquisition [Line Items]
Purchase price			$ 11,000
Mortgage notes payable			0
Cash consideration			10,900
Real estate			11,000
Other			$ (100)
Square footage | ft²			40,235
Subsequent event | Medical office building | Colorado Springs, CO
Business Acquisition [Line Items]
Purchase price	$ 8,900
Square footage | ft²	36,720

Real Estate Investments - Dispo

Real Estate Investments - Dispositions (Details) ft² in Thousands, $ in Thousands	Sep. 30, 2020USD ($)ft²	Jul. 30, 2020USD ($)ft²	Jun. 30, 2020numberOfAgreements	May 31, 2020USD ($)
Real Estate Dispositions [Line Items]
Sales price				$ 244,500
Real Estate Dispositions
Real Estate Dispositions [Line Items]
Sales price	$ 249,500
Closing adjustments	(200)
Net proceeds	249,300
Net Real Estate Investment	171,800
Real estate other	7,100
Gain/(impairment)	$ 70,400
Square footage | ft²	412
Real Estate Dispositions | Springfield, MO
Real Estate Dispositions [Line Items]
Sales price		$ 138,000
Closing adjustments		0
Net proceeds		138,000
Net Real Estate Investment		92,400
Real estate other		3,900
Gain/(impairment)		$ 41,700
Square footage | ft²		186
Real Estate Dispositions | Oklahoma City, OK
Real Estate Dispositions [Line Items]
Sales price		$ 106,500
Closing adjustments		0
Net proceeds		106,500
Net Real Estate Investment		76,800
Real estate other		3,100
Gain/(impairment)		$ 26,600
Square footage | ft²		200
Number of agreements to sell leased properties | numberOfAgreements			2
Real Estate Dispositions | Miami, FL
Real Estate Dispositions [Line Items]
Sales price	$ 5,000
Closing adjustments	(200)
Net proceeds	4,800
Net Real Estate Investment	2,600
Real estate other	100
Gain/(impairment)	$ 2,100
Square footage | ft²	26

Real Estate Investments - Asset

Real Estate Investments - Assets Held for Sale (Details) $ in Thousands	1 Months Ended
	Sep. 30, 2020USD ($)property	Dec. 31, 2019USD ($)property
Long Lived Assets Held-for-sale [Line Items]
Number of properties reclassified to held for sale | property	4
Expected purchase price	$ 23,000
Net investment in property held for sale	$ 18,100
Number of properties held for sale | property	4	0
Balance Sheet Related Disclosures [Abstract]
Land	$ 330,840	$ 289,751
Building, improvements and lease intangibles	4,014,740	3,986,326
Personal property	10,962	10,538
Total real estate properties	4,381,189	4,359,993
Accumulated depreciation	(1,198,444)	(1,121,102)
Total real estate properties, net	3,182,745	3,238,891
Assets held for sale, net	20,051	37
Liabilities of assets held for sale	548	145
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Balance Sheet Related Disclosures [Abstract]
Land	1,664	0
Building, improvements and lease intangibles	26,871	0
Personal property	39	0
Total real estate properties	28,574	0
Accumulated depreciation	(10,443)	0
Total real estate properties, net	18,131	0
Other assets, net	1,920	37
Assets held for sale, net	20,051	37
Accounts payable and accrued liabilities	437	37
Other liabilities	111	108
Liabilities of assets held for sale	$ 548	$ 145

Leases - Lease Income (Details)

Leases - Lease Income (Details) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	May 31, 2020USD ($)property	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Leases [Abstract]
Rental income		$ 123,384		$ 117,740	$ 368,385	$ 342,787
Number of properties sold | property	2
Sales price	$ 244,500
Gains on sales of investment real estate			$ 68,300		70,395	$ 5,065
Profit recognized at commencement date		0			68,267
Interest income		$ 1,454			$ 3,007

Leases - Lessor Accounting (Det

Leases - Lessor Accounting (Details) $ in Thousands	Sep. 30, 2020USD ($)
Future Operating Lease Payments Receivable [Abstract]
2020	$ 93,722
2021	352,341
2022	307,166
2023	261,187
2024	200,578
2025 and thereafter	555,264
Total	$ 1,770,258

Leases - Ground Leases (Details

Leases - Ground Leases (Details) ft² in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Leaseproperty	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)ft²Leaseproperty	Sep. 30, 2019USD ($)
Lessee, Lease, Description [Line Items]
Number of properties subject to ground leases | property	103		103
Square feet subject to ground leases | ft²			8.7
Number of prepaid ground leases			42
Amortization of prepaid rent | $	$ 0.2	$ 0.2	$ 0.5	$ 0.4
Number of non-prepaid ground leases	61		61
Minimum
Lessee, Lease, Description [Line Items]
Ground lease, initial term	40 years		40 years
Maximum
Lessee, Lease, Description [Line Items]
Ground lease, initial term	99 years		99 years

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
OPERATING
2020	$ 1,008
2021	4,844
2022	4,875
2023	4,913
2024	4,969
2025 and thereafter	307,665
Total undiscounted lease payments	328,274
Discount	(236,808)
Lease liabilities	91,466	$ 91,574
FINANCING
2020	143
2021	930
2022	783
2023	793
2024	815
2025 and thereafter	88,808
Total undiscounted lease payments	92,272
Discount	(73,575)
Lease liabilities	$ 18,697	$ 18,037

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating lease cost
Operating lease expense	$ 1,180	$ 1,169	$ 3,534	$ 3,448
Variable lease expense	1,066	845	2,664	2,380
Finance lease cost
Amortization of right-of-use assets	88	51	236	101
Interest on lease liabilities	245	196	722	392
Total lease expense	2,579	2,261	7,156	6,321
Other information
Operating cash flows outflows related to operating leases	1,440	1,313	5,412	5,461
Financing cash flows outflows related to financing leases	143	107	3,310	249
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 0	$ 0	$ 7,212	$ 14,294
Weighted-average remaining lease term (excluding renewal options) - operating leases	48 years 10 months 24 days	49 years 8 months 12 days	48 years 10 months 24 days	49 years 8 months 12 days
Weighted-average remaining lease term (excluding renewal options) -finance leases	64 years 8 months 12 days	70 years 1 month 6 days	64 years 8 months 12 days	70 years 1 month 6 days
Weighted-average discount rate - operating leases	5.70%	5.70%	5.70%	5.70%
Weighted-average discount rate - finance leases	5.40%	5.50%	5.40%	5.50%

Notes and Bonds Payable (Detail

Notes and Bonds Payable (Details)	Oct. 19, 2020USD ($)	Oct. 01, 2020USD ($)ft²	Jun. 25, 2020USD ($)ft²bond	Jun. 02, 2020USD ($)ft²	May 29, 2020USD ($)	May 04, 2020USD ($)ft²	Mar. 04, 2020USD ($)derivative	Feb. 03, 2020USD ($)ft²	Sep. 30, 2020USD ($)ft²	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)ft²	Sep. 30, 2019USD ($)	Oct. 02, 2020USD ($)	Feb. 25, 2020USD ($)	Feb. 24, 2020USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Notes and bonds payable									$ 1,554,395,000		$ 1,554,395,000					$ 1,414,069,000
Impact of settlement of forward-starting interest rate swap									$ 74,000	$ 2,341,000	$ 15,459,000	$ 7,642,000
Area of real estate property | ft²									15,500,000		15,500,000
Borrowings on term loan											$ 150,000,000	50,000,000
Line of credit | $700 million Unsecured Credit Facility
Debt Instrument [Line Items]
Notes and bonds payable									$ 0		0					293,000,000
Credit facility									700,000,000		700,000,000
Medium-term notes | $200 million unsecured term loan facility, net of issuance costs
Debt Instrument [Line Items]
Notes and bonds payable									$ 199,180,000		$ 199,180,000					199,013,000
Effective interest rate									1.99%		1.99%
Term-loan facility									$ 200,000,000		$ 200,000,000
Medium-term notes | $150 million unsecured term loan due 2026
Debt Instrument [Line Items]
Notes and bonds payable									$ 149,455,000		$ 149,455,000					0
Effective interest rate									3.14%		3.14%
Borrowings on term loan					$ 150,000,000
Term-loan facility									$ 150,000,000		$ 150,000,000
Senior notes | Senior Notes due 2023, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable									$ 248,863,000		$ 248,863,000					248,540,000
Effective interest rate									3.95%		3.95%
Senior notes | Senior Notes due 2023, net of discount and issuance costs | Subsequent event
Debt Instrument [Line Items]
Outstanding principal repaid	$ 250,000,000
Payments to redeem unsecured senior notes	270,500,000
Debt redeemed, accrued interest	100,000
Debt redeemed, make whole amount	20,400,000
Write off of Deferred Debt Issuance Cost	1,100,000
Loss on early extinguishment of debt	$ 21,500,000
Senior notes | Senior notes due 2025, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable									$ 248,711,000		$ 248,711,000					248,522,000
Effective interest rate									4.08%		4.08%
Senior notes | Senior Notes due 2028, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable									$ 296,003,000		$ 296,003,000					295,651,000
Effective interest rate									3.84%		3.84%
Senior notes | Senior notes due 2030, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable									$ 296,384,000		$ 296,384,000					0
Effective interest rate							2.71%		2.71%		2.71%
Fixed interest rate (percent)							2.40%
Term-loan facility							$ 300,000,000
Debt discount							1,000,000
Debt issuance costs							$ 2,800,000
Number of derivative instruments settled | derivative							2
Senior notes | Senior notes due 2031 | Subsequent event
Debt Instrument [Line Items]
Effective interest rate													2.24%
Fixed interest rate (percent)													2.05%
Term-loan facility													$ 300,000,000
Debt discount													2,400,000
Debt issuance costs													$ 2,800,000
Mortgages | Mortgage notes payable, net of discounts and issuance costs and including premiums
Debt Instrument [Line Items]
Notes and bonds payable									$ 115,799,000		$ 115,799,000					$ 129,343,000
Effective interest rate									4.38%		4.38%
Settled interest rate swaps
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap									$ (74,000)	(2,341,000)	$ (11,192,000)	(7,642,000)
Settled interest rate swaps | Medium-term notes | $200 million unsecured term loan facility, net of issuance costs
Debt Instrument [Line Items]
Notional amount									$ 75,000,000		$ 75,000,000
Weighted average interest rate (percent)									2.37%		2.37%
Basis spread on variable rate											100.00%
Settled interest rate swaps | Medium-term notes | $150 million unsecured term loan due 2026
Debt Instrument [Line Items]
Notional amount									$ 100,000,000		$ 100,000,000
Weighted average interest rate (percent)									2.23%		2.23%
Basis spread on variable rate											160.00%
Settled interest rate swaps | Senior notes | Senior notes due 2025, net of discount and issuance costs
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap											$ 1,700,000
Treasury lock
Debt Instrument [Line Items]
Notional amount														$ 40,000,000	$ 75,000,000
Impact of settlement of forward-starting interest rate swap							$ 4,300,000		$ 0	$ 0	(4,267,000)	$ 0
Treasury lock | Senior notes | Senior notes due 2025, net of discount and issuance costs
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap							$ 4,300,000				$ 4,300,000
Mortgages
Debt Instrument [Line Items]
Fixed interest rate (percent)				6.44%		5.74%		6.10%
Outstanding principal repaid				$ 12,600,000		$ 300,000		$ 5,900,000
Area of real estate property | ft²				67,510		83,318		68,860
Mortgages | Subsequent event
Debt Instrument [Line Items]
Fixed interest rate (percent)		5.47%
Outstanding principal repaid		$ 4,200,000
Area of real estate property | ft²		40,171
Bonds
Debt Instrument [Line Items]
Area of real estate property | ft²			60,476
Number of bonds repaid | bond			3
Bonds | 5.63% Bonds
Debt Instrument [Line Items]
Fixed interest rate (percent)			5.63%
Outstanding principal repaid			$ 500,000
Bonds | 6.63% Bonds
Debt Instrument [Line Items]
Fixed interest rate (percent)			6.63%
Outstanding principal repaid			$ 2,800,000
Bonds | 6.88% Bonds
Debt Instrument [Line Items]
Fixed interest rate (percent)			6.88%
Outstanding principal repaid			$ 7,000,000

Derivative Financial Instrume_3

Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details) $ in Thousands	Mar. 04, 2020USD ($)	Sep. 30, 2020USD ($)swap_agreement	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)swap_agreement	Sep. 30, 2019USD ($)	Feb. 25, 2020USD ($)treasury_lock	Feb. 24, 2020USD ($)
Derivative [Line Items]
Impact of settlement of forward-starting interest rate swap		$ 74	$ 2,341	$ 15,459	$ 7,642
Derivatives in net liability position		15,100		15,100
Treasury lock
Derivative [Line Items]
Number of instruments | treasury_lock						2
Notional amount						$ 40,000	$ 75,000
Impact of settlement of forward-starting interest rate swap	$ 4,300	0	0	(4,267)	0
Term of senior notes	10 years
Settled interest rate swaps
Derivative [Line Items]
Impact of settlement of forward-starting interest rate swap		(74)	$ (2,341)	(11,192)	$ (7,642)
Active Interest Rate Swap
Derivative [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months		$ 4,400		$ 4,400
Cash flow hedging | Designated as hedging instrument | Settled interest rate swaps
Derivative [Line Items]
Number of instruments | swap_agreement		8		8
Notional amount		$ 175,000		$ 175,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - Designated as hedging instrument - Settled interest rate swaps $ in Thousands	Sep. 30, 2020USD ($)
Derivative [Line Items]
Liability derivatives	$ 14,460
Other liabilities
Derivative [Line Items]
Liability derivatives	$ 14,460

Derivative Financial Instrume_5

Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative [Line Items]
Loss recognized in AOCI on derivative	$ 74	$ 2,341	$ 15,459	$ 7,642
(Gain) loss reclassified from AOCI into income	(1,101)	(60)	(2,367)	(74)
Interest rate swaps
Derivative [Line Items]
Loss recognized in AOCI on derivative	74	2,341	11,192	7,642
Settled treasury hedges
Derivative [Line Items]
Loss recognized in AOCI on derivative	0	0	4,267	0
Settled interest rate swaps
Derivative [Line Items]
Loss recognized in AOCI on derivative	0	0	0	0
Total interest expense
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	1,101	60	2,367	74
Total interest expense | Interest rate swaps
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	952	18	2,012	(52)
Total interest expense | Settled treasury hedges
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	107	0	229	0
Total interest expense | Settled interest rate swaps
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	$ 42	$ 42	$ 126	$ 126

Commitments and Contingencies -

Commitments and Contingencies - Construction Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)ft²	Mar. 31, 2020ft²
Other Commitments [Line Items]
Approximate square feet | ft²	15,500,000
Medical office building expansion | Memphis, Tennessee
Other Commitments [Line Items]
Approximate square feet | ft²	110,883
Construction activity, total funding during the period, excluding purchase of land and building	$ 5,700
Medical office building | Washington
Other Commitments [Line Items]
Approximate square feet | ft²		151,031
Total amount funded	59,100
Estimated amount to complete project	5,000
Land and building | Medical office building | Memphis, Tennessee
Other Commitments [Line Items]
Construction activity, total funding during the period	$ 8,700

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Reconciliation of the beginning and ending common stock outstanding
Balance, beginning of period	134,706,000
Balance, end of period	136,054,000	134,706,000
Common Stock
Reconciliation of the beginning and ending common stock outstanding
Balance, beginning of period	134,706,154	125,279,455
Issuance of common stock	1,292,324	9,251,440
Nonvested share-based awards, net of withheld shares	55,462	175,259
Balance, end of period	136,053,940	134,706,154

Stockholders' Equity (Stock Tra

Stockholders' Equity (Stock Transactions - Narrative) (Details)	Nov. 03, 2020$ / shares	Nov. 04, 2020USD ($)$ / sharesshares	Sep. 30, 2020USD ($)$ / sharesshares	Jun. 30, 2020USD ($)$ / sharesshares	Mar. 31, 2020USD ($)$ / sharesshares	Sep. 30, 2019$ / sharesshares	Sep. 30, 2020USD ($)numberOfForwardEquityAgreements$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Feb. 14, 2020USD ($)investment_bank
Class of Stock [Line Items]
At-the-market equity offering program, authorized amount | $									$ 500,000,000
Net proceeds from issuance of common stock | $							$ 40,296,000	$ 192,514,000
Proceeds from issuance of common stock, adjusted for costs to borrow | $			$ 72,700,000				$ 72,700,000
Dividends declared per common share, during the period (in dollars per share)			$ 0.30			$ 0.30	$ 0.90	$ 0.90
Dilutive effect of forward equity shares (in shares) | shares			0			0	0	0
Weighted-average incremental shares of common stock excluded from the computation (shares) | shares			137,757				51,133
At the market equity offering program
Class of Stock [Line Items]
Number of investment banks included in the program | investment_bank									6
Issuance of common stock (in shares) | shares				1,071,987	196,250		1,268,237
Net proceeds from issuance of common stock | $				$ 32,900,000	$ 7,000,000		$ 39,900,000
Number of forward equity agreements | numberOfForwardEquityAgreements							3
Forward equity agreement (in shares) | shares							3,600,000
Stock price, per share to be subsequently sold (in USD per share)			$ 31.30				$ 31.30
Dilutive effect of forward equity shares (in shares) | shares			2,300,000				2,300,000
Forward Equity Agreement Maturing June 2021
Class of Stock [Line Items]
Forward equity agreement (in shares) | shares				1,579,371
Stock price, per share to be subsequently sold (in USD per share)				$ 31.66
Forward Equity Agreement Maturing July 2021
Class of Stock [Line Items]
Forward equity agreement (in shares) | shares			764,472
Stock price, per share to be subsequently sold (in USD per share)			$ 31.84				$ 31.84
Subsequent event
Class of Stock [Line Items]
At-the-market equity offering program, remaining authorized amount, assuming forward equity contracts settle | $		$ 347,600,000
Dividends declared per common share, during the period (in dollars per share)	$ 0.30
Subsequent event | Forward Equity Agreement Maturing July 2021
Class of Stock [Line Items]
Forward equity agreement (in shares) | shares		1,235,129
Stock price, per share to be subsequently sold (in USD per share)		$ 30.52
Minimum | At the market equity offering program
Class of Stock [Line Items]
Shares issued during period, price per share (in dollars per share)				30.50	$ 33		30.50
Maximum | At the market equity offering program
Class of Stock [Line Items]
Shares issued during period, price per share (in dollars per share)				31.29	36.15		36.15
Weighted Average | At the market equity offering program
Class of Stock [Line Items]
Shares issued during period, price per share (in dollars per share)				$ 31.08	$ 36.09		$ 31.86

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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Weighted average Common Shares outstanding
Weighted average common shares outstanding (in shares)	136,048,781	129,865,985	135,393,798	128,348,638
Non-vested shares	(1,739,364)	(1,775,911)	(1,731,658)	(1,777,743)
Weighted average common shares outstanding - basic (in shares)	134,309,417	128,090,074	133,662,140	126,570,895
Dilutive effect of forward equity shares (in shares)	0	0	0	0
Dilutive effect of employee stock purchase plan (in shares)	47,810	78,610	74,029	85,690
Weighted average common shares outstanding - diluted (in shares)	134,357,227	128,168,684	133,736,169	126,656,585
Net Income	$ 8,230	$ 2,601	$ 88,058	$ 11,975
Dividends paid on nonvested share-based awards	(522)	(534)	(1,561)	(1,603)
Net income applicable to common stockholders	$ 7,708	$ 2,067	$ 86,497	$ 10,372
Basic earnings per common share (in dollars per share)	$ 0.06	$ 0.02	$ 0.65	$ 0.08
Diluted earnings per common share (in dollars per share)	$ 0.06	$ 0.02	$ 0.65	$ 0.08

Stockholders' Equity - Summary

Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock incentive plan - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summary of the activity under the incentive plans
Share-based awards, beginning of period	1,739,258	1,778,134	1,754,066	1,769,863
Granted (shares)	188	0	79,025	89,767
Vested (shares)	0	204,548	93,645	286,044
Share-based awards, end of period	1,739,446	1,573,586	1,739,446	1,573,586
Executive Chairman
Summary of the activity under the incentive plans
Vested (shares)	204,548
Restricted stock
Summary of the activity under the incentive plans
Shares withheld to pay estimated withholding taxes			23,563	100,036

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) - Employee stock purchase plan - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summary of the Employee Stock Purchase Plan activity
Outstanding and exercisable, beginning of period (in shares)	361,719	363,218	332,659	328,533
Granted (in shares)	0	0	212,716	235,572
Exercised (in shares)	(3,504)	(9,927)	(17,871)	(28,943)
Forfeited (in shares)	(6,659)	(11,762)	(36,154)	(51,559)
Expired (in shares)	0	0	(139,794)	(142,074)
Outstanding and exercisable, end of period (in shares)	351,556	341,529	351,556	341,529

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
CARRYING VALUE
Derivative [Line Items]
Notes and bonds payable	$ 1,554.4	$ 1,414.1
FAIR VALUE
Derivative [Line Items]
Notes and bonds payable	$ 1,621.7	$ 1,425.8