Real Estate and Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2016

Text Block [Abstract]

Assets Acquired

We acquired the following assets:

	2016			2015			2014
	(in thousands)
Assets Acquired
Land	$	91,176		$	120,746		$	22,569
Building		654,772			741,935			241,242
Intangible lease assets — subject to amortization (weighted average useful life of 28.5 years in 2016, 30.0 years in 2015 and 18.2 years in 2014)		94,614			176,383			22,513
Net investments in direct financing leases		178,000			174,801			—
Mortgage loans		600,000			380,000			—
Other loans		—			523,605			447,664
Equity investments and other assets		70,166			101,716			33,708
Liabilities assumed		(6,319	)		(317	)		—
Total assets acquired	$	1,682,409		$	2,218,869		$	767,696
Loans repaid(1)		(193,262	)		(385,851	)		—
Total net assets acquired	$	1,489,147		$	1,833,018		$	767,696

(1) $93.3 million loans advanced to Capella in 2015 and repaid in 2016 as a part of the Capella transaction, and $100.0 million loans advanced to Prime in 2015 and repaid in 2016 as part of the sale leaseback conversion of four properties in New Jersey. $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 below as if each acquisition was completed on January 1, 2015 and January 1, 2014 for the year ended December 31, 2016 and 2015, respectively. The unaudited supplemental pro forma operating data is not necessarily indicative of what the actual 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)
	2016		2015
Total revenues	$	627,583	$	624,443
Net income		310,019		306,756
Net income per share/unit	$	0.97	$	0.96

Summary of Status Update on Current Development Projects

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

Operator	Commitment		Costs Incurred as of 12/31/16		Estimated Completion Date
Adeptus Health	$	5,848	$	2,710		1Q 2017
Adeptus Health		67,185		44,948		2Q 2017
Ernest Health		28,067		4,342		4Q 2017
Adeptus Health		7,804		1,648		1Q 2018
Adeptus Health		53,866		—		Various
	$	162,770	$	53,648

Summary of Operations for Disposed Assets in 2016

The properties sold during 2016 did 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 Year Ended December 31,
	2016			2015			2014
Revenues	$	7,851		$	18,112		$	18,225
Real estate depreciation and amortization		(1,754	)		(3,795	)		(3,789	)
Property-related expenses		(114	)		(121	)		(60	)
Other income (expense)		(23	)		1,079			462
Income from real estate dispositions, net	$	5,960		$	15,275		$	14,838

Amortization Expense from Existing Lease Intangible Assets

We recorded amortization expense related to intangible lease assets of $13.4 million, $9.1 million, and $7.0 million in 2016, 2015, and 2014, respectively, and expect to recognize amortization expense from existing lease intangible assets as follows: (amounts in thousands)

For the Year Ended December 31:
2017	$	22,130
2018		22,069
2019		22,021
2020		21,818
2021		21,751

Components of Net Investment in Direct Financing Leases

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

	As of December 31, 2016			As of December 31, 2015
Minimum lease payments receivable	$	2,207,625		$	2,587,912
Estimated residual values		407,647			393,097
Less unearned income		(1,967,170	)		(2,354,013	)
Net investment in direct financing leases	$	648,102		$	626,996

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, 2016, are as follows (amounts in thousands):

	Total Under Operating Leases		Total Under DFLs		Total
2017	$	386,058	$	62,419	$	448,477
2018		388,808		63,668		452,476
2019		392,577		64,941		457,518
2020		395,339		66,240		461,579
2021		400,607		67,565		468,172
Thereafter		7,077,794		1,673,600		8,751,394
	$	9,041,183	$	1,998,433	$	11,039,616

Summary of Loans

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

	As of December 31, 2016					As of December 31, 2015
	Balance		Weighted Average Interest Rate			Balance		Weighted Average Interest Rate
Mortgage loans	$	1,060,400		8.8	%	$	757,581		9.5	%
Acquisition loans		121,464		13.7	%		610,469		9.1	%
Working capital and other loans		34,257		9.0	%		54,353		10.2	%
	$	1,216,121				$	1,422,403

Schedule of Revenue by Operator

Revenue by Operator

(Dollar amounts in thousands)

	For the Years Ended December 31,
	2016					2015
Operators (A)	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Prime	$	120,558		22.3	%	$	104,325		23.6	%
MEDIAN		93,425		17.3	%		78,540		17.8	%
Ernest		67,742		12.5	%		61,988		14.0	%
RCCH		52,720		9.7	%		28,567		6.4	%
Other operators		206,692		38.2	%		168,458		38.2	%
Total	$	541,137		100.0	%	$	441,878		100.0	%

(A) Steward is not included herein as the Steward transaction closed on October 3, 2016.

Schedule of Revenue from External Customers by Geographic Areas

Revenue by U.S. State and Country

(Dollar amounts in thousands)

	For the Years Ended December 31,
	2016					2015
U.S. States and Other Countries	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Texas	$	96,992		17.9	%	$	87,541		19.8	%
California		66,197		12.2	%		66,120		15.0	%
New Jersey		39,084		7.2	%		27,688		6.3	%
Massachusetts		26,098		4.8	%		69		0.0	%
Arizona		23,798		4.4	%		21,188		4.8	%
Other States		187,363		34.7	%		156,256		35.3	%
Total U.S.	$	439,532		81.2	%	$	358,862		81.2	%
Germany	$	97,382		18.0	%	$	78,540		17.8	%
United Kingdom, Italy, and Spain		4,223		0.8	%		4,476		1.0	%
Total International	$	101,605		18.8	%	$	83,016		18.8	%
Total	$	541,137		100.0	%	$	441,878		100.0	%