Real Estate and Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Assets Acquired

We acquired the following assets:

	2014		2013		2012
Assets Acquired		(in thousands)
Land	$	22,569	$	41,473	$	518
Building		241,242		439,030		8,942
Intangible lease assets — subject to amortization (weighted average useful life of 18.2 years in 2014, 21.0 years in 2013 and 15.0 years in 2012)		22,513		38,589		1,040
Net investments in direct financing leases		—		110,580		310,000
Mortgage loans		—		20,000		200,000
Other loans		447,664		5,250		95,690
Other assets		33,708		—		5,300
Total assets acquired	$	767,696	$	654,922	$	621,490

Schedule of Unaudited Supplemental Pro Forma Operating Data

The following unaudited supplemental pro forma operating data is presented for the year ended December 31, 2014 and 2012, as if each acquisition was completed on January 1, 2013

	For the Year Ended December 31,
	(Unaudited)
	2014		2013
Total revenues	$	329,258	$	315,780
Net income		67,150		144,545
Net income per share/unit	$	0.38	$	0.84

Summary of Status Update on Current Development Projects

See table below for a status update on our current development projects (in thousands):

Property	Location	Property Type	Operator	Commitment		Costs Incurred as of 12/31/14		Estimated Completion Date
UAB Medical West	Hoover, AL	Acute Care Hospital & MOB	Medical West, an affiliate of UAB	$	8,653	$	1,973	2Q 2015
First Choice ER- Summerwood	Houston, TX	Acute Care Hospital	Adeptus Health		6,015		2,560	2Q 2015
First Choice ER- Ft. Worth Avondale – Haslet	Ft. Worth, TX	Acute Care Hospital	Adeptus Health		4,780		871	2Q 2015
First Choice ER- Carrollton	Carrollton, TX	Acute Care Hospital	Adeptus Health		35,820		15,629	3Q 2015
First Choice ER- Chandler	Chandler, AZ	Acute Care Hospital	Adeptus Health		5,049		895	3Q 2015
First Choice ER- Converse	Converse, TX	Acute Care Hospital	Adeptus Health		5,754		1,141	3Q 2015
First Choice ER- Denver 48th	Denver, CO	Acute Care Hospital	Adeptus Health		5,123		44	3Q 2015
First Choice ER- McKinney	McKinney, TX	Acute Care Hospital	Adeptus Health		4,750		50	3Q 2015
First Choice Emergency Rooms	Various	Acute Care Hospital	Adeptus Health		84,423		—	Various
				$	160,367	$	23,163

Amortization Expense from Existing Lease Intangible Assets

We recorded amortization expense related to intangible lease assets of $7.0 million, $4.0 million, and $3.9 million in 2014, 2013, and 2012, respectively, and expect to recognize amortization expense from existing lease intangible assets as follows: (amounts in thousands)

For the Year Ended December 31:
2015	$	6,438
2016		6,397
2017		6,387
2018		6,326
2019		6,271

Components of Net Investment in Direct Financing Leases

The components of our net investment in DFLs consisted of the following (dollars in thousands):

	As of December 31, 2014
Minimum lease payments receivable	$	1,607,024
Estimated residual values		211,888
Less unearned income		(1,379,396	)
Net investment in direct financing leases	$	439,516

Minimum Rental Payments Due under Operating Leases with Non-Cancelable Terms

Minimum rental payments due to us in future periods under operating leases and DFL, which have non-cancelable terms extending beyond one year at December 31, 2014, are as follows: (amounts in thousands)

	Total Under Operating Leases		Total Under DFLs		Total
2015	$	196,864	$	43,386	$	240,250
2016		198,265		44,254		242,519
2017		198,807		45,139		243,946
2018		199,728		46,041		245,769
2019		199,857		46,962		246,819
Thereafter		1,838,346		380,743		2,219,089
	$	2,831,867	$	606,525	$	3,438,392

Net Investment Under Monroe Facility

As of December 31, 2014 and 2013, our net investment (exclusive of the related real estate) in Monroe was as follows:

	As of December  31, 2014		As of December  31, 2013
Loans	$	—	$	31,341
Less: Loan impairment reserve		—		(12,000	)
Loans, net		—		19,341
Interest, rent and other receivables		—		20,972
Net investment	$	—	$	40,313

Summary of Loans

The following is a summary of our loans ($ amounts in thousands):

	As of December 31, 2014					As of December 31, 2013
	Balance		Weighted Average Interest Rate			Balance		Weighted Average Interest Rate
Mortgage loans	$	397,594		10.5	%	$	388,756		10.0	%
Acquisition loans		525,136		9.3	%		109,655		14.7	%
Working capital and other loans		48,031		10.4	%		51,335		10.8	%
	$	970,761				$	549,746