XML 32 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Real Estate and Other Activities (Tables)
 3 Months Ended
Mar. 31, 2023
Real Estate [Abstract]  
Net Assets Acquired

We acquired or invested in the following net assets (in thousands):

 

 

 

For the Three Months
Ended March 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Land and land improvements

 

$

9,313

 

 

$

9,671

 

Buildings

 

 

11,652

 

 

 

204,829

 

Intangible lease assets — subject to amortization (weighted-average useful
   life of 28.8 years for 2023 and 13.2 years for 2022)

 

 

1,935

 

 

 

5,461

 

Investments in unconsolidated real estate joint ventures

 

 

—

 

 

 

399,456

 

Investments in unconsolidated operating entities

 

 

50,000

 

 

 

131,105

 

Liabilities assumed

 

 

—

 

 

 

(25,727

)

 

 

$

72,900

 

 

$

724,795

 

Loans repaid(1)

 

 

(22,900

)

 

 

—

 

Total net assets acquired

 

$

50,000

 

 

$

724,795

 
(1)
The 2023 column includes a $23 million mortgage loan to Springstone Health Opco, LLC ("Springstone") that was converted to fee simple ownership of one property as described below.
Summary of Status on Current Development Projects

See table below for a status summary of our current development projects (in thousands):

 

Property

 

Commitment

 

 

Costs
Incurred as of
March 31, 2023

 

 

Estimated Rent
Commencement
Date

Ernest Health, Inc. ("Ernest") (Stockton, California)

 

$

47,700

 

 

$

46,372

 

 

2Q 2023

IMED Hospitales ("IMED") (Spain)

 

 

51,043

 

 

 

13,323

 

 

2Q 2023

Ernest (South Carolina)

 

 

22,400

 

 

 

14,469

 

 

3Q 2023

IMED (Spain)

 

 

45,976

 

 

 

37,568

 

 

3Q 2023

Springstone (Texas)

 

 

31,600

 

 

 

4,099

 

 

1Q 2024

IMED (Spain)

 

 

37,193

 

 

 

9,170

 

 

3Q 2024

Steward (Texas)

 

 

169,408

 

 

 

57,059

 

 

1Q 2026

 

 

$

405,320

 

 

$

182,060

 

 

 
Summary of Operating Results from Properties

The properties expected to be sold during 2023 and sold during 2022 do not meet the definition of discontinued operations. However, the following represents the operating results from these properties for the periods presented (in thousands):

 

 

 

For the Three Months
Ended March 31,

 

 

 

2023(1)

 

 

2022

 

Revenues(2)

 

$

18,877

 

 

$

40,579

 

Real estate depreciation and amortization

 

 

(4,991

)

 

 

(5,247

)

Property-related expenses

 

 

(1,413

)

 

 

(3,015

)

Real estate and other impairment charges(3)

 

 

(89,538

)

 

 

—

 

Other (expense) income(4)

 

 

(7,244

)

 

 

444,268

 

Income from real estate dispositions, net

 

$

(84,309

)

 

$

476,585

 
(1)
The 2023 column consists of assets designated as held for sale in the first quarter of 2023 as a result of the transactions described in the "2023 Activity" subsection above.
(2)
Includes $4.5 million of straight-line rent write-offs associated with the non-Macquarie disposal transactions for the three months ended March 31, 2022.
(3)
Includes an approximate $79 million net impairment charge (including $37.4 million of straight-line rent write-offs) associated with the Australia Transaction and an approximate $11 million non-cash impairment charge associated with the repurchase of three Prime facilities for the three months ended March 31, 2023.
(4)
Includes $451.6 million of gains (net of $125 million write-off of straight-line rent receivables related to the Macquarie Transaction) for the three months ended March 31, 2022.
Components of Total Investment in Financing Leases The components of our total investment in financing leases consisted of the following (in thousands):

 

 

 

As of March 31,
   2023

 

 

As of December 31,
   2022

 

Minimum lease payments receivable

 

$

626,721

 

 

$

880,253

 

Estimated unguaranteed residual values

 

 

203,818

 

 

 

203,818

 

Less: Unearned income and allowance for credit loss

 

 

(588,097

)

 

 

(731,915

)

Net investment in direct financing leases

 

 

242,442

 

 

 

352,156

 

Other financing leases (net of allowance for credit loss)

 

 

1,339,974

 

 

 

1,339,167

 

Total investment in financing leases

 

$

1,582,416

 

 

$

1,691,323

 
Summary of Investments in Unconsolidated Operating Entities

The following is a summary of our investments in unconsolidated real estate joint ventures by operator (amounts in thousands):

 

Operator

 

Ownership Percentage

As of March 31,
   2023

 

 

As of December 31,
   2022

 

Median Kliniken S.á.r.l ("MEDIAN")

 

50%

$

483,706

 

 

$

482,735

 

Swiss Medical Network

 

70%

 

461,952

 

 

 

454,083

 

Steward (Macquarie Transaction)

 

50%

 

416,068

 

 

 

417,701

 

Policlinico di Monza

 

50%

 

88,658

 

 

 

86,245

 

HM Hospitales

 

45%

 

56,090

 

 

 

57,139

 

Total

 

 

$

1,506,474

 

 

$

1,497,903

 

The following is a summary of our investments in unconsolidated operating entities (amounts in thousands):

 

 

Operator

 

As of March 31,
   2023

 

 

As of December 31,
   2022

 

Steward (loan investment)

 

$

362,586

 

 

$

362,831

 

International joint venture

 

 

230,153

 

 

 

231,402

 

Priory

 

 

159,668

 

 

 

156,575

 

Swiss Medical Network

 

 

158,687

 

 

 

157,145

 

Steward (equity investment)

 

 

125,862

 

 

 

125,862

 

Prospect

 

 

112,701

 

 

 

112,777

 

Aevis Victoria SA ("Aevis")

 

 

77,618

 

 

 

72,904

 

PHP Holdings

 

 

49,895

 

 

 

—

 

Aspris Children's Services ("Aspris")

 

 

16,014

 

 

 

16,023

 

Springstone

 

 

10,933

 

 

 

200,827

 

Caremax

 

 

6,343

 

 

 

8,526

 

Total

 

$

1,310,460

 

 

$

1,444,872

 
Summary of Activity in Credit Loss reserves

The following table summarizes the activity in our credit loss reserves (in thousands):

 

 

 

For the Three Months
Ended March 31,

 

 

 

2023

 

 

2022

 

Balance at beginning of the year

 

$

121,146

 

 

$

48,527

 

Provision for credit loss, net

 

 

986

 

 

 

5,412

 

Expected credit loss reserve related to financial instruments
     sold, repaid, or satisfied

 

 

(160

)

 

 

(6

)

Balance at end of the period

 

$

121,972

 

 

$

53,933

 
Schedule of Concentrations of Credit Risk See below for our concentration details (dollars in thousands):

Total Assets by Operator

 

 

 

As of March 31, 2023

 

 

As of December 31, 2022

 

Operators

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

Steward

 

$

4,800,594

 

 

 

24.4

%

 

$

4,762,673

 

 

 

24.2

%

Circle Health Ltd ("Circle")

 

 

2,092,822

 

 

 

10.7

%

 

 

2,062,474

 

 

 

10.5

%

Prospect

 

 

1,533,412

 

 

 

7.8

%

 

 

1,483,599

 

 

 

7.5

%

Priory

 

 

1,310,968

 

 

 

6.7

%

 

 

1,290,213

 

 

 

6.6

%

Springstone

 

 

796,248

 

 

 

4.0

%

 

 

985,959

 

 

 

5.0

%

Other operators

 

 

7,406,721

 

 

 

37.7

%

 

 

7,461,923

 

 

 

38.0

%

Other assets

 

 

1,709,392

 

 

 

8.7

%

 

 

1,611,159

 

 

 

8.2

%

Total

 

$

19,650,157

 

 

 

100.0

%

 

$

19,658,000

 

 

 

100.0

%

 

 

Total Assets by U.S. State and Country

 

 

As of March 31, 2023

 

 

As of December 31, 2022

 

U.S. States and Other Countries

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

Texas

 

$

2,008,146

 

 

 

10.2

%

 

$

1,967,948

 

 

 

10.0

%

California

 

 

1,502,060

 

 

 

7.7

%

 

 

1,450,112

 

 

 

7.4

%

Florida

 

 

1,319,878

 

 

 

6.7

%

 

 

1,324,555

 

 

 

6.8

%

Utah

 

 

1,218,883

 

 

 

6.2

%

 

 

1,224,484

 

 

 

6.2

%

Massachusetts

 

 

763,555

 

 

 

3.9

%

 

 

761,694

 

 

 

3.9

%

All other states

 

 

4,035,762

 

 

 

20.5

%

 

 

4,245,306

 

 

 

21.6

%

Other domestic assets

 

 

1,087,136

 

 

 

5.5

%

 

 

1,028,946

 

 

 

5.2

%

Total U.S.

 

$

11,935,420

 

 

 

60.7

%

 

$

12,003,045

 

 

 

61.1

%

United Kingdom

 

$

4,145,170

 

 

 

21.1

%

 

$

4,083,244

 

 

 

20.8

%

Australia

 

 

781,585

 

 

 

4.0

%

 

 

854,582

 

 

 

4.3

%

Switzerland

 

 

763,711

 

 

 

3.9

%

 

 

748,947

 

 

 

3.8

%

Germany

 

 

666,930

 

 

 

3.4

%

 

 

664,900

 

 

 

3.4

%

Spain

 

 

226,800

 

 

 

1.1

%

 

 

222,316

 

 

 

1.1

%

All other countries

 

 

508,285

 

 

 

2.6

%

 

 

498,753

 

 

 

2.5

%

Other international assets

 

 

622,256

 

 

 

3.2

%

 

 

582,213

 

 

 

3.0

%

Total international

 

$

7,714,737

 

 

 

39.3

%

 

$

7,654,955

 

 

 

38.9

%

Grand total

 

$

19,650,157

 

 

 

100.0

%

 

$

19,658,000

 

 

 

100.0

%

Total Revenues by Operator

 

 

 

For the Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Operators

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Steward

 

$

103,494

 

 

 

29.6

%

 

$

121,244

 

 

 

29.6

%

Circle

 

 

47,415

 

 

 

13.5

%

 

 

51,212

 

 

 

12.5

%

Prospect

 

 

—

 

 

 

0.0

%

 

 

38,684

 

 

 

9.4

%

Priory

 

 

24,740

 

 

 

7.1

%

 

 

19,070

 

 

 

4.7

%

Springstone

 

 

20,167

 

 

 

5.8

%

 

 

21,664

 

 

 

5.3

%

Other operators

 

 

154,395

 

 

 

44.0

%

 

 

157,926

 

 

 

38.5

%

Total

 

$

350,211

 

 

 

100.0

%

 

$

409,800

 

 

 

100.0

%

 

 

Total Revenues by U.S. State and Country

 

 

 

For the Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

U.S. States and Other Countries

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Texas

 

$

44,116

 

 

 

12.6

%

 

$

34,844

 

 

 

8.5

%

Utah

 

 

35,641

 

 

 

10.2

%

 

 

33,768

 

 

 

8.2

%

Florida

 

 

26,182

 

 

 

7.5

%

 

 

25,305

 

 

 

6.2

%

California

 

 

19,495

 

 

 

5.6

%

 

 

41,291

 

 

 

10.1

%

Massachusetts

 

 

6,816

 

 

 

1.8

%

 

 

32,631

 

 

 

8.0

%

All other states

 

 

99,137

 

 

 

28.4

%

 

 

125,907

 

 

 

30.7

%

Total U.S.

 

$

231,387

 

 

 

66.1

%

 

$

293,746

 

 

 

71.7

%

United Kingdom

 

$

84,206

 

 

 

24.0

%

 

$

83,906

 

 

 

20.5

%

Australia

 

 

15,237

 

 

 

4.4

%

 

 

17,031

 

 

 

4.1

%

All other countries

 

 

19,381

 

 

 

5.5

%

 

 

15,117

 

 

 

3.7

%

Total international

 

$

118,824

 

 

 

33.9

%

 

$

116,054

 

 

 

28.3

%

Grand total

 

$

350,211

 

 

 

100.0

%

 

$

409,800

 

 

 

100.0

%

 

Total Revenues by Facility Type

 

 

 

For the Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Facility Types

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

General acute care hospitals

 

$

253,036

 

 

 

72.3

%

 

$

316,019

 

 

 

77.0

%

Behavioral health facilities

 

 

53,658

 

 

 

15.3

%

 

 

50,897

 

 

 

12.4

%

Inpatient rehabilitation facilities

 

 

29,046

 

 

 

8.3

%

 

 

28,906

 

 

 

7.1

%

Long-term acute care hospitals

 

 

8,251

 

 

 

2.4

%

 

 

8,302

 

 

 

2.1

%

Freestanding ER/urgent care facilities

 

 

6,220

 

 

 

1.7

%

 

 

5,676

 

 

 

1.4

%

Total

 

$

350,211

 

 

 

100.0

%

 

$

409,800

 

 

 

100.0

%