Real Estate and Lending Activities (Tables)

9 Months Ended

Sep. 30, 2016

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Assets Acquired

We acquired the following assets (in thousands):

	Nine Months Ended September 30,
	2016			2015
Assets Acquired
Land and land improvements	$	13,874		$	113,309
Building		125,472			711,805
Intangible lease assets — subject to amortization (weighted average useful life of 19.4 years in 2016 and 28.4 years in 2015)		10,754			144,900
Mortgage loans		—			365,000
Net investments in direct financing leases		63,000			170,700
Other loans		—			514,484
Total assets acquired	$	213,100		$	2,020,198
Loans repaid (1)		(93,262	)		(385,851	)
Total net assets acquired	$	119,838		$	1,634,347

(1) $93.3 million loans advanced to Capella in 2015 and repaid in 2016 as a part of the Capella transaction. $385.9 million 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 nine months ended September 30, 2016 and 2015, as if each acquisition (including the Steward investments completed subsequent to September 30, 2016) 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 September 30,				For the Nine Months Ended September 30,
	2016		2015		2016		2015
Total revenues	$	162.4	$	156.5	$	479.8	$	480.1
Net income	$	73.3	$	63.0	$	206.3	$	227.0
Net income per share/unit — diluted	$	0.23	$	0.20	$	0.64	$	0.71

Summary of Status Update on Current Development Projects

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

Operator	Commitment		Costs Incurred as of 09/30/16		Estimated Completion Date
Adeptus Health	$	32,684	$	18,472		4Q 2016
Adeptus Health		11,578		2,860		1Q 2017
Adeptus Health		69,801		29,616		2Q 2017
Ernest Health		28,067		3,206		3Q 2017
Adeptus Health		59,054		—		Various
	$	201,184	$	54,154

Summary of Operations for Disposed Assets in 2016

The properties sold during the year 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 (excluding loans repaid in the Capella Disposal Transaction) for the periods presented (in thousands):

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2016			2015			2016			2015
Revenues	$	244		$	4,523		$	7,851		$	13,598
Real estate depreciation and amortization		—			(949	)		(1,754	)		(2,846	)
Property-related expenses		—			(10	)		(114	)		(82	)
Other income (expense)		(24	)		521			(92	)		1,078
Income from real estate dispositions, net	$	220		$	4,085		$	5,891		$	11,748

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 September 30, 2016			As of December 31, 2015
Minimum lease payments receivable	$	1,884,144		$	2,587,912
Estimated residual values		292,647			393,097
Less: Unearned income		(1,643,300	)		(2,354,013	)
Net investment in direct financing leases	$	533,491		$	626,996

Summary of Loans

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

	As of September 30, 2016		As of December 31, 2015
Mortgage loans	$	550,118	$	757,581
Acquisition loans		122,161		610,469
Working capital and other loans		43,623		54,353
	$	715,902	$	1,422,403

Schedule of Revenue by Operator

Revenue by Operator

	For the Nine Months Ended September 30, 2016					For the Nine Months Ended September 30, 2015
Operators	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Prime	$	89,389		23.1	%	$	75,982		24.5	%
MEDIAN		70,242		18.1	%		56,609		18.2	%
Ernest		50,564		13.0	%		45,874		14.8	%
RCCH		42,776		11.0	%		7,155		2.3	%
Adeptus Health		25,873		6.7	%		12,982		4.2	%

Schedule of Revenue from External Customers by Geographic Areas

Revenue by U.S. State and Country

	For the Nine Months Ended September 30, 2016					For the Nine Months Ended September 30, 2015
U.S. States and Other Countries	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Texas	$	72,811		18.8	%	$	63,815		20.6	%
California		49,724		12.8	%		49,595		16.0	%
All other states		189,365		48.8	%		137,006		44.1	%
Total U.S.	$	311,900		80.4	%	$	250,416		80.7	%
Germany	$	72,718		18.8	%	$	56,609		18.2	%
United Kingdom, Italy, and Spain		3,236		0.8	%		3,308		1.1	%
Total International	$	75,954		19.6	%	$	59,917		19.3	%
Grand Total	$	387,854		100.0	%	$	310,333		100.0	%

Schedule of Gross Assets by Operator

Gross Assets by Operator

	As of September 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)
Steward	$	1,250,000		17.3	%	$	—		—
Prime		1,142,760		15.9	%		1,032,353		17.1	%
MEDIAN		1,054,568		14.6	%		1,031,039		17.1	%
Ernest		622,416		8.6	%		579,182		9.6	%
RCCH		564,509		7.8	%		1,059,989		17.6	%

Schedule of Gross Assets by Geographic Areas

Gross Assets by U.S. State and Country

	As of September 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)
Massachusetts	$	1,250,000		17.3	%	$	—		—
Texas		944,028		13.1	%		1,060,990		17.6	%
California		542,892		7.5	%		547,085		9.1	%
All other states		2,669,401		37.0	%		3,047,204		50.5	%
Other domestic assets		251,587		3.5	%		177,317		2.9	%
Total U.S.	$	5,657,908		78.4	%	$	4,832,596		80.1	%
Germany	$	1,376,626		19.1	%	$	1,031,039		17.1	%
United Kingdom, Italy, and Spain		156,226		2.1	%		161,317		2.7	%
Other international assets		27,017		0.4	%		10,970		0.1	%
Total International	$	1,559,869		21.6	%	$	1,203,326		19.9	%
Grand Total	$	7,217,777		100.0	%	$	6,035,922		100.0	%

(A) Gross Assets represents total assets plus accumulated depreciation/amortization assuming all real estate commitments (such as the Steward transaction and the commitments disclosed in Note 9) as of the period end are fully funded.

(B) Includes both leased and loaned assets.