ACQUISITIONS OF REAL ESTATE

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Acquisition of Real Estate

RECENT REAL ESTATE ACQUISITIONS

During the year ended December 31, 2013, the Company acquired one senior housing facility and one acute care hospital for total consideration of $122.8 million. The consideration was allocated as follows (in thousands):

				Intangibles
Land		Building and Improvements		Tenant Origination and Absorption Costs		Tenant Relationship		Total Consideration
$	5,563	$	114,666	$	2,196	$	349	$	122,774

The tenant origination and absorption costs intangibles and tenant relationship intangibles acquired in connection with these acquisitions have weighted-average amortization periods as of the date of acquisition of 18 years and 28 years, respectively.

For the year ended December 31, 2013, the Company recognized $2.9 million and $1.0 million of total revenues and net income attributable to common stockholders, respectively, from these properties.

Forest Park - Frisco Contingent Consideration

On October 22, 2013, the Company purchased Forest Park Medical Center - Frisco, a 54-bed acute care hospital located in Frisco, Texas. The total purchase price was $119.8 million, of which approximately $10.5 million is being held in escrow. This amount will be held in escrow for up to 20 months and the amount ultimately released from escrow is contingent on the tenant achieving certain performance hurdles. The seller will be paid a fee of $0.5 million per annum during the escrow period. As of October 22, 2013, the amount the Company expected to release from escrow was valued at $7.3 million and is treated as contingent consideration. As of December 31, 2013, based on the performance of the facility the contingent consideration liability is estimated at $7.5 million and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. As of December 31, 2013, the $10.5 million held in escrow is included in prepaid expenses, deferred financing costs and other assets in the accompanying consolidated balance sheets. During the year ended December 31, 2013, the Company recorded an adjustment to the contingent consideration liability of $0.2 million and included this amount in other expense on the accompanying consolidated statements of income.