Real Estate and Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2015

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Assets Acquired

Acquisitions

We acquired the following assets:

	2015			2014		2013
Assets Acquired	(in thousands)
Land	$	126,336		$	22,569	$	41,473
Building		758,009			241,242		439,030
Intangible lease assets — subject to amortization (weighted average useful life of 30.4 years in 2015, 18.2 years in 2014 and 21.0 years in 2013)		154,719			22,513		38,589
Net investments in direct financing leases		174,801			—		110,580
Mortgage loans		380,000			—		20,000
Other loans		523,605			447,664		5,250
Equity investments and other assets		101,716			33,708		—
Liabilities		(317	)		—		—
Total assets acquired	$	2,218,869		$	767,696	$	654,922
Loans repaid(1)		(385,851	)		—		—
Total net assets acquired	$	1,833,018		$	767,696	$	654,922

(1) Loans advanced to MEDIAN in 2014 and repaid in 2015 as part of step 2 of the MEDIAN transaction. See below for details.

Schedule of Unaudited Supplemental Pro Forma Operating Data

The following unaudited supplemental pro forma operating data is presented below as if each acquisition was completed on January 1, 2014 and January 1, 2014 for the year ended December 31, 2015 and 2014, respectively. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods (in thousands, except per share/unit amounts).

	For the Year Ended December 31, (Unaudited)
	2015		2014
Total revenues	$	542,763	$	531,549
Net income		240,783		220,181
Net income per share/unit	$	1.02	$	0.93

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 12/31/15		Estimated Completion Date
First Choice ER — Houston	Houston, TX	Acute Care Hospital	Adeptus Health	$	5,257	$	2,535		1Q 2016
First Choice ER- Denver	Denver, CO	Acute Care Hospital	Adeptus Health		5,300		2,435		2Q 2016
First Choice ER- Phoenix	Phoenix, AZ	Acute Care Hospital	Adeptus Health		6,728		3,275		2Q 2016
First Choice ER- San Antonio	San Antonio, TX	Acute Care Hospital	Adeptus Health		7,530		3,690		2Q 2016
First Choice ER- Texas(1)	Texas	Acute Care Hospital	Adeptus Health		16,422		3,924		2Q 2016
Rehabilitation Hospital of Northwestern Ohio	Toledo, OH	Inpatient Rehabilitation Hospital	Ernest Health		19,212		13,693		2Q 2016
First Choice ER- Houston	Houston, TX	Acute Care Hospital	Adeptus Health		45,961		19,613		3Q 2016
First Choice Emergency Rooms	Various	Acute Care Hospital	Adeptus Health		200,090		—		Various
				$	306,500	$	49,165

(1) Includes three acute care facilities.

Amortization Expense from Existing Lease Intangible Assets

We recorded amortization expense related to intangible lease assets of $9.1 million, $7.0 million, and $4.0 million in 2015, 2014, and 2013, respectively, and expect to recognize amortization expense from existing lease intangible assets as follows: (amounts in thousands)

For the Year Ended December 31:
2016	$	10,204
2017		10,194
2018		10,133
2019		10,085
2020		9,882

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, 2015			As of December 31, 2014
Minimum lease payments receivable	$	2,587,912		$	1,607,024
Estimated residual values		393,097			211,888
Less unearned income		(2,354,013	)		(1,379,396	)
Net investment in direct financing leases	$	626,996		$	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 DFLs, which have non-cancelable terms extending beyond one year at December 31, 2015, are as follows: (amounts in thousands)

	Total Under Operating Leases		Total Under DFLs		Total
2016	$	295,839	$	65,097	$	360,936
2017		297,671		66,399		364,070
2018		299,662		67,727		367,389
2019		301,040		69,081		370,121
2020		301,460		70,463		371,923
Thereafter		4,847,165		2,039,146		6,886,311
	$	6,342,837	$	2,377,913	$	8,720,750

Summary of Loans

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

	As of December 31, 2015					As of December 31, 2014
	Balance		Weighted Average Interest Rate			Balance		Weighted Average Interest Rate
Mortgage loans	$	757,581		9.5	%	$	397,594		10.5	%
Acquisition loans		610,469		9.1	%		525,136		9.3	%
Working capital and other loans		54,353		10.2	%		48,031		10.4	%
	$	1,422,403				$	970,761

Schedule of Investment and Revenue by Operator

Investments and Revenue by Operator

As of December 31, 2015:

(Dollar amounts in thousands)

Operators	Total Assets		Percentage of Total Assets			Total Revenue		Percentage of Total Revenue
Prime	$	1,032,353		18.4	%	$	104,325		23.6	%
Capella		1,015,914		18.1	%		28,567		6.4	%
MEDIAN		978,529		17.4	%		78,540		17.8	%
Ernest		569,375		10.2	%		61,988		14.0	%

As of December 31, 2014:

(Dollar amounts in thousands)

Operators	Total Assets		Percentage of Total Assets			Total Revenue		Percentage of Total Revenue
Prime	$	749,553		20.1	%	$	84,038		26.9	%
MEDIAN		707,437		19.0	%		23,663		7.6	%
Ernest		486,758		13.1	%		57,315		18.3	%

Schedule of Investments and Revenue from External Customers by Geographic Areas

Investments and Revenue by U.S. State and Country

As of December 31, 2015:

(Dollar amounts in thousands)

U.S. States and Other Countries	Total Assets		Percentage of Total Assets			Total Revenue		Percentage of Total Revenue
Texas	$	917,314		16.4	%	$	87,541		19.8	%
California		547,085		9.8	%		66,120		15.0	%
Germany		978,529		17.4	%		78,540		17.8	%
Italy, Spain, and the U.K.		152,661		2.7	%		4,476		1.0	%

As of December 31, 2014:

(Dollar amounts in thousands)

U.S. States and Other Countries	Total Assets		Percentage of Total Assets			Total Revenue		Percentage of Total Revenue
Texas	$	776,017		20.9	%	$	74,044		23.7	%
California		547,098		14.7	%		64,268		20.5	%
Germany		707,437		19.0	%		23,663		7.6	%
U.K.		44,005		1.2	%		2,322		0.7	%