XML 35 R23.htm IDEA: XBRL DOCUMENT v3.23.2
Real Estate and Other Activities (Tables)
 6 Months Ended
Jun. 30, 2023
Real Estate [Abstract]  
Net Assets Acquired

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

 

 

 

For the Six Months
Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Land and land improvements

 

$

28,916

 

 

$

34,204

 

Buildings

 

 

114,966

 

 

 

290,256

 

Intangible lease assets — subject to amortization (weighted-average useful
   life of 24.8 years for 2023 and 20.1 years for 2022)

 

 

16,305

 

 

 

16,949

 

Mortgage loans

 

 

—

 

 

 

100,000

 

Investments in unconsolidated real estate joint ventures

 

 

—

 

 

 

399,456

 

Investments in unconsolidated operating entities

 

 

50,000

 

 

 

131,105

 

Other loans

 

 

25,000

 

 

 

—

 

Liabilities assumed

 

 

—

 

 

 

(25,727

)

 

 

$

235,187

 

 

$

946,243

 

Loans repaid(1)

 

 

(22,900

)

 

 

—

 

Total net assets acquired

 

$

212,287

 

 

$

946,243

 

 

(1)
The 2023 column includes a $23 million mortgage loan that was converted to fee simple ownership of one property as described under Lifepoint Transaction 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
June 30, 2023

 

 

Estimated Rent
Commencement
Date

Ernest Health, Inc. ("Ernest") (South Carolina)

 

$

22,400

 

 

$

18,077

 

 

3Q 2023

IMED Hospitales ("IMED") (Spain)

 

 

46,273

 

 

 

41,109

 

 

3Q 2023

Lifepoint Behavioral Health (Texas)

 

 

31,600

 

 

 

11,422

 

 

1Q 2024

IMED (Spain)

 

 

37,434

 

 

 

10,832

 

 

3Q 2024

IMED (Spain)

 

 

51,372

 

 

 

14,849

 

 

1Q 2025

Steward (Texas)

 

 

169,408

 

 

 

57,098

 

 

2Q 2026

 

 

$

358,487

 

 

$

153,387

 

 

 

 
Summary of Operating Results from Properties

The properties expected to be sold during 2023 and sold during the first half of 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 June 30,

For the Six Months
Ended June 30,

 

 

 

2023(1)

 

 

2022

 

 

2023(1)

 

 

2022

 

Revenues(2)

 

$

12,051

 

 

$

18,905

 

 

$

30,928

 

 

$

60,739

 

Real estate depreciation and amortization

 

 

—

 

 

 

(5,615

)

 

 

(4,991

)

 

 

(11,508

)

Property-related expenses

 

 

(436

)

 

 

(2,410

)

 

 

(1,855

)

 

 

(5,765

)

Real estate and other impairment charges(3)

 

 

—

 

 

 

—

 

 

 

(89,538

)

 

 

—

 

Other (expense) income(4)

 

 

(5,382

)

 

 

8,410

 

 

 

(10,974

)

 

 

452,678

 

Income (loss) from real estate dispositions, net

 

$

6,233

 

 

$

19,290

 

 

$

(76,430

)

 

$

496,144

 

 

(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 $1.8 million and $6.3 million of straight-line rent write-offs associated with the non-Macquarie disposal transactions for the three and six months ended June 30, 2022, respectively.
(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 six months ended June 30, 2023.
(4)
Includes $16.4 million and $468.0 million of gains (net of $125 million write-off of straight-line rent receivables related to the Macquarie Transaction) for the three and six months ended June 30, 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 June 30,
   2023

 

 

As of December 31,
   2022

 

Minimum lease payments receivable

 

$

621,704

 

 

$

880,253

 

Estimated unguaranteed residual values

 

 

203,818

 

 

 

203,818

 

Less: Unearned income and allowance for credit loss

 

 

(582,215

)

 

 

(731,915

)

Net investment in direct financing leases

 

 

243,307

 

 

 

352,156

 

Other financing leases (net of allowance for credit loss)

 

 

988,345

 

 

 

1,339,167

 

Total investment in financing leases

 

$

1,231,652

 

 

$

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 June 30,
   2023

 

 

As of December 31,
   2022

 

MEDIAN

 

50%

$

482,710

 

 

$

482,735

 

Swiss Medical Network

 

70%

 

440,754

 

 

 

454,083

 

Steward (Macquarie Transaction)

 

50%

 

425,424

 

 

 

417,701

 

Policlinico di Monza

 

50%

 

83,595

 

 

 

86,245

 

HM Hospitales

 

45%

 

54,635

 

 

 

57,139

 

Total

 

 

$

1,487,118

 

 

$

1,497,903

 

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

 

 

Operator

 

As of June 30,
   2023

 

 

As of December 31,
   2022

 

PHP Holdings

 

$

654,520

 

 

$

—

 

Steward (loan investment)

 

 

362,586

 

 

 

362,831

 

International joint venture

 

 

230,153

 

 

 

231,402

 

Priory

 

 

163,619

 

 

 

156,575

 

Swiss Medical Network

 

 

162,194

 

 

 

157,145

 

Steward (equity investment)

 

 

125,862

 

 

 

125,862

 

Aevis Victoria SA ("Aevis")

 

 

79,121

 

 

 

72,904

 

Aspris Children's Services ("Aspris")

 

 

16,005

 

 

 

16,023

 

Lifepoint Behavioral

 

 

10,767

 

 

 

200,827

 

Caremax

 

 

7,323

 

 

 

8,526

 

Prospect

 

 

—

 

 

 

112,777

 

Total

 

$

1,812,150

 

 

$

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 June 30,

 

 

 

2023

 

 

2022

 

Balance at beginning of the period

 

$

121,972

 

 

$

53,933

 

Provision for credit loss, net

 

 

362

 

 

 

1,345

 

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

 

 

(35,229

)

 

 

(28

)

Balance at end of the period

 

$

87,105

 

 

$

55,250

 

 

 

 

 

For the Six Months
Ended June 30,

 

 

 

2023

 

 

2022

 

Balance at beginning of the year

 

$

121,146

 

 

$

48,527

 

Provision for credit loss, net

 

 

1,348

 

 

 

6,757

 

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

 

 

(35,389

)

 

 

(34

)

Balance at end of the period

 

$

87,105

 

 

$

55,250

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

Total Assets by Operator

 

 

 

As of June 30, 2023

 

 

As of December 31, 2022

 

Operators

 

Total Assets

 

 

Percentage of
Total Assets

 

 

Total Assets

 

 

Percentage of
Total Assets

 

Steward

 

$

3,656,046

 

 

 

19.0

%

 

$

4,762,673

 

 

 

24.2

%

Circle Health Ltd ("Circle")

 

 

2,141,517

 

 

 

11.2

%

 

 

2,062,474

 

 

 

10.5

%

Priory

 

 

1,401,106

 

 

 

7.3

%

 

 

1,290,213

 

 

 

6.6

%

Prospect

 

 

1,045,844

 

 

 

5.5

%

 

 

1,483,599

 

 

 

7.5

%

Lifepoint Behavioral

 

 

799,212

 

 

 

4.2

%

 

 

985,959

 

 

 

5.0

%

Other operators

 

 

7,746,083

 

 

 

40.2

%

 

 

7,461,923

 

 

 

38.0

%

Other assets

 

 

2,414,567

 

(1)

 

12.6

%

 

 

1,611,159

 

 

 

8.2

%

Total

 

$

19,204,375

 

 

 

100.0

%

 

$

19,658,000

 

 

 

100.0

%
(1)
Includes our investment in PHP Holdings of $655 million as part of the Prospect Transaction as further described above in this same Note 3.

 

Total Assets by U.S. State and Country

 

 

As of June 30, 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

 

$

1,940,872

 

 

 

10.1

%

 

$

1,967,948

 

 

 

10.0

%

Florida

 

 

1,366,453

 

 

 

7.1

%

 

 

1,324,555

 

 

 

6.8

%

California

 

 

1,211,932

 

 

 

6.3

%

 

 

1,450,112

 

 

 

7.4

%

Utah

 

 

834,773

 

 

 

4.4

%

 

 

1,224,484

 

 

 

6.2

%

Massachusetts

 

 

805,796

 

 

 

4.2

%

 

 

761,694

 

 

 

3.9

%

All other states

 

 

3,846,670

 

 

 

20.0

%

 

 

4,245,306

 

 

 

21.6

%

Other domestic assets

 

 

1,699,686

 

 

 

8.9

%

 

 

1,028,946

 

 

 

5.2

%

Total U.S.

 

$

11,706,182

 

 

 

61.0

%

 

$

12,003,045

 

 

 

61.1

%

United Kingdom

 

$

4,301,199

 

 

 

22.4

%

 

$

4,083,244

 

 

 

20.8

%

Germany

 

 

746,419

 

 

 

3.9

%

 

 

664,900

 

 

 

3.4

%

Switzerland

 

 

682,069

 

 

 

3.5

%

 

 

748,947

 

 

 

3.8

%

Australia

 

 

301,125

 

 

 

1.6

%

 

 

854,582

 

 

 

4.3

%

Spain

 

 

232,037

 

 

 

1.2

%

 

 

222,316

 

 

 

1.1

%

All other countries

 

 

520,463

 

 

 

2.7

%

 

 

498,753

 

 

 

2.5

%

Other international assets

 

 

714,881

 

 

 

3.7

%

 

 

582,213

 

 

 

3.0

%

Total international

 

$

7,498,193

 

 

 

39.0

%

 

$

7,654,955

 

 

 

38.9

%

Grand total

 

$

19,204,375

 

 

 

100.0

%

 

$

19,658,000

 

 

 

100.0

%

Total Revenues by Operator

 

 

 

For the Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

Operators

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

Prospect

 

$

68,436

 

 

 

20.3

%

 

$

42,364

 

 

 

10.6

%

Circle

 

 

48,645

 

 

 

14.4

%

 

 

47,539

 

 

 

11.9

%

Priory

 

 

26,930

 

 

 

8.0

%

 

 

19,179

 

 

 

4.8

%

CommonSpirit

 

 

19,568

 

 

 

5.8

%

 

 

—

 

 

 

—

 

Lifepoint Behavioral

 

 

19,068

 

 

 

5.7

%

 

 

22,250

 

 

 

5.6

%

Steward

 

 

(301

)

(1)

 

-0.1

%

 

 

106,007

 

 

 

26.5

%

Other operators

 

 

155,049

 

 

 

45.9

%

 

 

162,887

 

 

 

40.6

%

Total

 

$

337,395

 

 

 

100.0

%

 

$

400,226

 

 

 

100.0

%
(1)
Includes $95 million straight-line rent write-off as a result of the Steward Transaction as further described above in this same Note 3.

 

Total Revenues by U.S. State and Country

 

 

 

For the Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

U.S. States and Other Countries

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

California

 

$

57,367

 

 

 

17.0

%

 

$

48,109

 

 

 

12.0

%

Texas

 

 

47,444

 

 

 

14.1

%

 

 

39,716

 

 

 

9.9

%

Florida

 

 

35,508

 

 

 

10.5

%

 

 

26,051

 

 

 

6.5

%

Pennsylvania

 

 

22,930

 

 

 

6.8

%

 

 

19,942

 

 

 

5.0

%

Arizona

 

 

19,721

 

 

 

5.9

%

 

 

16,383

 

 

 

4.1

%

All other states

 

 

36,204

 

(1)

 

10.7

%

 

 

137,518

 

 

 

34.4

%

Total U.S.

 

$

219,174

 

 

 

65.0

%

 

$

287,719

 

 

 

71.9

%

United Kingdom

 

$

88,275

 

 

 

26.2

%

 

$

79,415

 

 

 

19.8

%

Germany

 

 

9,517

 

 

 

2.8

%

 

 

8,337

 

 

 

2.1

%

All other countries

 

 

20,429

 

 

 

6.0

%

 

 

24,755

 

 

 

6.2

%

Total international

 

$

118,221

 

 

 

35.0

%

 

$

112,507

 

 

 

28.1

%

Grand total

 

$

337,395

 

 

 

100.0

%

 

$

400,226

 

 

 

100.0

%
(1)
Includes $95 million straight-line rent write-off as a result of the Steward Transaction as further described above in this same Note 3.

 

Total Revenues by Facility Type

 

 

 

For the Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

Facility Types

 

Total Revenues

 

 

Percentage of
Total Revenues

 

 

Total Revenues

 

 

Percentage of
Total Revenues

 

General acute care hospitals

 

$

234,917

 

(1)

 

69.6

%

 

$

305,468

 

 

 

76.3

%

Behavioral health facilities

 

 

56,378

 

 

 

16.7

%

 

 

51,763

 

 

 

12.9

%

Inpatient rehabilitation facilities

 

 

31,452

 

 

 

9.3

%

 

 

28,897

 

 

 

7.2

%

Long-term acute care hospitals

 

 

8,329

 

 

 

2.5

%

 

 

8,270

 

 

 

2.1

%

Freestanding ER/urgent care facilities

 

 

6,319

 

 

 

1.9

%

 

 

5,828

 

 

 

1.5

%

Total

 

$

337,395

 

 

 

100.0

%

 

$

400,226

 

 

 

100.0

%
(1)
Includes $95 million straight-line rent write-off as a result of the Steward Transaction as further described above in this same Note 3.