Business Combinations

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Combinations

Business Combinations

For the year ended December 31, 2013, we completed ten acquisitions for an aggregate purchase price of $397.8 million. We incurred $4.8 million of costs attributable to these completed acquisitions. As part of the acquisitions we assumed mortgage loans with a fair value of $53.4 million.

The aggregate net purchase price of the 2013 acquisitions was allocated in the amounts set forth in the table below. Due to the recent timing of certain acquisitions, we have not yet finalized our purchase price allocation. Since the acquisitions were determined to be individually not significant, but material on a collective basis, the allocations for these acquisitions are set forth below in the aggregate (in thousands):

2013 Acquisitions	Total
Land	$	16,192
Building and improvements	292,037
Below market leasehold interests	10,317
Above market leases	2,999
In place leases	52,845
Tenant relationships	25,119
Below market leases	(2,104		)
Above market debt	(694		)
Interest rate swap	(2,600		)
	394,111
Contingencies and other, net	3,715
Aggregate purchase price	$	397,826

The weighted average lives of the above acquired intangible assets and liabilities were 16.0 years and 5.6 years, respectively.

The following is a brief description of each of the 2013 acquisitions.

• On March 11, 2013, we completed the acquisition of a medical office building located in Dallas, Texas for $48.7 million.

• On March 22, 2013, we completed the acquisition of a medical office building located in Bryan/College Station, Texas for $39.8 million.

• On June 18, 2013, we completed the acquisition of a medical office building located in Atlanta, Georgia for $5.6 million.

• On July 12, 2013, we completed the acquisition of a medical office property located in Monroeville, Pennsylvania for $15.1 million.

• On July 29, 2013, we completed the acquisition of a medical office building located in Denver, Colorado for $42.0 million.

• On August 30, 2013, we completed the acquisition of a medical office building located in Dallas, Texas for $27.7 million.

• On September 20, 2013, we completed the acquisition of a portfolio of medical office buildings located in Miami/West Palm Beach, Florida for $62.9 million. As part of the acquisition, we assumed $18.0 million of fixed rate mortgage loans.

• On November 13, 2013, we completed the acquisition of a medical office building located in Austin, Texas for $9.6 million.

• On December 10, 2013, we completed the acquisition of a medical office building located in Austin, Texas for $19.7 million. As part of the acquisition, we assumed a $4.8 million fixed rate mortgage loan.

• On December 13, 2013, we completed the acquisition of a portfolio of medical office buildings located in Tampa/Jupiter, Florida for $126.7 million. As part of the acquisition, we assumed a $29.9 million variable rate mortgage loan with an associated interest rate swap.

The aggregate net purchase price of the 2012 acquisitions was allocated in the amounts set forth in the table below. Since the acquisitions were determined to be individually not significant, but material on a collective basis, the allocations for these acquisitions are set forth below in the aggregate (in thousands):

2012 Acquisitions	Total
Land	$	13,479
Building and improvements	225,924
Below market leasehold interests	3,284
Above market leases	4,199
In place leases	27,136
Tenant relationships	22,100
Below market leases	(1,472		)
	294,650
Contingencies and other, net	287
Aggregate purchase price	$	294,937

The weighted average lives of the above acquired intangible assets and liabilities were 14.2 years and 7.6 years, respectively.

We recorded the below revenues and net income (loss) for the year ended December 31, 2013 related to the 2013 acquisitions and for the year ended December 31, 2012 related to the 2012 acquisitions (in thousands):

	2013 Acquisitions		2012 Acquisitions
	Year Ended		Year Ended
	December 31, 2013		December 31, 2012
Revenues	$	15,361	$	26,717
Net income (loss)	206		7,537

Supplementary Pro Forma Information of HTA

The following pro forma consolidated results of operations of HTA for the years ended December 31, 2013 and 2012, assumes that all 2013 acquisitions occurred on January 1, 2012 and excludes $4.8 million of acquisition-related expenses (in thousands, except per share data):

	Year Ended December 31,
	2013		2012
Revenues	$	349,813	$	342,655
Net income (loss) attributable to common stockholders	28,017		(25,294		)
Net income (loss) per share attributable to common stockholders - basic	$	0.12	$	(0.10	)
Net income (loss) per share attributable to common stockholders - diluted	0.12		(0.10		)

The following pro forma consolidated results of operations of HTA for the years ended December 31, 2012 and 2011, assumes that all 2012 acquisitions occurred on January 1, 2011 and excludes $3.0 million of acquisition-related expenses (in thousands, except per share data):

	Year Ended December 31,
	2012			2011
Revenues	$	306,420		$	307,246
Net income (loss) attributable to common stockholders	(21,928		)	6,736
Net income (loss) per share attributable to common stockholders - basic	$	(0.10	)	$	0.03
Net income (loss) per share attributable to common stockholders - diluted	(0.10		)	0.03

The pro forma results are not necessarily indicative of the operating results that would have been obtained had the acquisitions occurred at the beginning of the periods presented, nor are they necessarily indicative of future operating results.

Supplementary Pro Forma Information of HTALP

The following pro forma consolidated results of operations of HTALP for the years ended December 31, 2013 and 2012, assumes that all 2013 acquisitions occurred on January 1, 2012 and excludes $4.8 million of acquisition-related expenses (in thousands, except per unit data):

	Year Ended December 31,
	2013		2012
Revenues	$	349,813	$	342,655
Net income (loss) attributable to common unitholders	28,389		(25,278		)
Net income (loss) per unit attributable to common unitholders - basic	$	0.12	$	(0.10	)
Net income (loss) per unit attributable to common unitholders - diluted	0.12		(0.10		)

The following pro forma consolidated results of operations of HTALP for the years ended December 31, 2012 and 2011, assumes that all 2012 acquisitions occurred on January 1, 2011 and excludes $3.0 million of acquisition-related expenses (in thousands, except per unit data):

	Year Ended December 31,
	2012			2011
Revenues	$	306,420		$	307,246
Net income (loss) attributable to common unitholders	(21,912		)	6,758
Net income (loss) per unit attributable to common unitholders - basic	$	(0.10	)	$	0.03
Net income (loss) per unit attributable to common unitholders - diluted	(0.10		)	0.03

The pro forma results are not necessarily indicative of the operating results that would have been obtained had the acquisitions occurred at the beginning of the periods presented, nor are they necessarily indicative of future operating results.