Real Estate and Lending Activities (Tables)

6 Months Ended

Jun. 30, 2016

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Assets Acquired

We acquired the following assets (in thousands):

	Six Months Ended June 30,
	2016		2015
Assets Acquired
Land and land improvements	$	9,398	$	62,434
Building		37,593		390,320
Intangible lease assets — subject to amortization (weighted average useful life 25.8 years)		—		42,262
Mortgage loans		—		40,000
Net investments in direct financing leases		63,000		10,700
Other loans		—		16,917
Total assets acquired	$	109,991	$	562,633
Loans repaid (1)		—		(183,826	)
Total net assets acquired	$	109,991	$	378,807

(1) Loans advanced to MEDIAN in 2014 and repaid in 2015 as a part of the MEDIAN transaction.

Schedule of Unaudited Supplemental Pro Forma Operating Data

The following unaudited supplemental pro forma operating data is presented for the three and six months ended June 30, 2015, as if each acquisition (including completed development projects) was completed on January 1, 2015. Supplemental pro forma earnings were adjusted to exclude acquisition-related costs on consummated deals incurred. 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 Three Months Ended June 30, 2015		For the Six Months Ended June 30, 2015
Total revenues	$	109	$	219
Net income	$	50	$	100
Net income per share/unit — diluted	$	0.21	$	0.42

Summary of Status Update on Current Development Projects

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

Property	Commitment		Costs Incurred as of 06/30/16		Estimated Completion Date
Adeptus Health	$	62,154	$	43,763		3Q 2016
Adeptus Health		53,836		15,343		4Q 2016
Adeptus Health		5,730		206		1Q 2017
Adeptus Health		61,997		16,311		2Q 2017
Adeptus Health		71,331		—		Various
	$	255,048	$	75,623

Summary of Facilities and Related Net Assets Designated as Held for Sale

On May 20, 2016, we reached a firm commitment to sell three inpatient rehabilitation hospitals located in Texas and operated by HealthSouth for $111.5 million. At June 30, 2016, these facilities and related net assets were designated as held for sale and included the following (in thousands):

Real estate held for sale	$	63,074
Straight-line rent receivables		2,441
Other, net		(625	)
	$	64,890

Summary of Operations for Disposed Assets

The properties which sold during the quarter and the assets held for sale at June 30, 2016, do not meet the definition of discontinued operations. However, the following represents the operating results (excluding gain on sale, transaction costs, and impairment or other non-cash charges) from these properties for the periods presented (in thousands):

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2016			2015			2016			2015
Revenues	$	3,092		$	4,525		$	7,607		$	9,075
Real estate depreciation and amortization		(805	)		(949	)		(1,754	)		(1,897	)
Property-related expenses		(72	)		(12	)		(113	)		(72	)
Other income (expense)		(9	)		228			(68	)		557
Income from real estate dispositions, net	$	2,206		$	3,792		$	5,672		$	7,663

Components of Net Investment in Direct Financing Leases

The components of our net investment in DFLs (which includes the Capella properties for 2015 only) consisted of the following (in thousands):

	As of June 30, 2016			As of December 31, 2015
Minimum lease payments receivable	$	1,875,751		$	2,587,912
Estimated residual values		292,646			393,097
Less: Unearned income		(1,639,650	)		(2,354,013	)
Net investment in direct financing leases	$	528,747		$	626,996

Summary of Loans

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

	As of June 30, 2016		As of December 31, 2015
Mortgage loans	$	549,337	$	757,581
Acquisition loans		216,100		610,469
Working capital and other loans		43,229		54,353
	$	808,666	$	1,422,403

Schedule of Revenue by Operator

Revenue by Operator

	For the Six Months Ended June 30, 2016					For the Six Months Ended June 30, 2015
Operators	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Prime	$	58,859		22.5	%	$	49,869		25.5	%
MEDIAN		47,745		18.3	%		32,212		16.5	%
Ernest		33,322		12.8	%		29,695		15.2	%
RCCH		32,909		12.6	%		—		—
Adeptus Health		16,205		6.2	%		7,425		3.8	%

Schedule of Revenue from External Customers by Geographic Areas

Revenue by U.S. State and Country

	For the Six Months Ended June 30, 2016					For the Six Months Ended June 30, 2015
U.S. States and Other Countries	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Texas	$	48,256		18.5	%	$	42,689		21.8	%
California		33,187		12.7	%		33,065		16.9	%
All other states		129,896		49.7	%		85,620		43.7	%
Total U.S.	$	211,339		80.9	%	$	161,374		82.4	%
Germany	$	47,745		18.3	%	$	32,212		16.5	%
United Kingdom, Italy, and Spain		2,215		0.8	%		2,176		1.1	%
Total International	$	49,960		19.1	%	$	34,388		17.6	%
Grand Total	$	261,299		100.0	%	$	195,762		100.0	%

Schedule of Gross Assets by Operator

Gross Assets by Operator

	As of June 30, 2016					As of December 31, 2015
Operators	Total Gross Assets		Percentage of Total Gross Assets			Total Gross Assets		Percentage of Total Gross Assets
	(A)		(B)			(A)		(B)
Prime	$	1,126,654		20.8	%	$	1,032,353		17.1	%
MEDIAN		1,054,368		19.4	%		1,031,039		17.1	%
Ernest		584,411		10.8	%		579,182		9.6	%
Adeptus Health		500,000		9.2	%		500,000		8.3	%
RCCH		458,659		8.5	%		1,059,989		17.6	%

Schedule of Gross Assets by Geographic Areas

Gross Assets by U.S. State and Country

	As of June 30, 2016					As of December 31, 2015
U.S. States and Other Countries	Total Gross Assets		Percentage of Total Gross Assets			Total Gross Assets		Percentage of Total Gross Assets
	(A)		(B)			(A)		(B)
Texas	$	920,959		17.0	%	$	1,060,990		17.6	%
California		547,079		10.1	%		547,085		9.1	%
All other states		2,530,018		46.6	%		3,047,204		50.5	%
Other domestic assets		189,358		3.5	%		177,317		2.9	%
Total U.S.	$	4,187,414		77.2	%	$	4,832,596		80.1	%
Germany	$	1,054,368		19.4	%	$	1,031,039		17.1	%
United Kingdom, Italy, and Spain		156,630		3.0	%		161,317		2.7	%
Other international assets		23,983		0.4	%		10,970		0.1	%
Total International	$	1,234,981		22.8	%	$	1,203,326		19.9	%
Grand Total	$	5,422,395		100.0	%	$	6,035,922		100.0	%

(A) Gross Assets represents total assets plus accumulated depreciation/amortization assuming all real estate commitments as of the period end are fully funded.

(B) Includes both leased and loaned assets.