Note 3—Acquisitions and Investments

During the six months ended June 30, 2014, the Trust completed acquisitions of 22 operating healthcare properties located in eight states for an aggregate purchase price of approximately $221.0 million as summarized below (in thousands):

Property(1)	Location	Acquisition Date	Purchase Price
Foundations San Antonio Surgical Hospital(2)	San Antonio, TX	February 19, 2014	$	25,556
Eagles Landing Family Practice 4 MOBs(2)	Atlanta, GA	February 19, 2014	$	20,800
21st Century Oncology 4 MOBs(3)	Sarasota, FL	February 26, 2014	$	17,486
Foundations San Antonio MOB(3)	San Antonio, TX	February 28, 2014	$	6,800
Peachtree Dunwoody MOB(3)	Atlanta, GA	February 28, 2014	$	36,726
LifeCare LTACH(2)	Fort Worth, TX	March 28, 2014	$	27,160
LifeCare LTACH(2)	Pittsburgh, PA	March 28, 2014	$	12,840
Pinnacle Health Cardiology Portfolio 2 MOBs (3)	Carlisle & Wormleyburg, PA	April 22, 2014	$	9,208
South Bend Orthopedic MOB (3)	South Bend, IN	April 30, 2014	$	14,900
Grenada Medical Complex MOB (3)	Grenada, MS	April 30,2014	$	7,100
Mississippi Sports Medicine and Orthopaedics Center MOB (2)(4)	Jackson, MS	May 23, 2014	$	16,700
Carmel Medical Pavilion MOB (3)(4)	Carmel, IN	May 28, 2014	$	4,664
Summit Urology MOB (2)	Bloomington, IN	June 30, 2014	$	4,783
Renaissance Center (3)	Oshkosh, WI	June 30, 2014	$	8,500
Presbyterian Medical Plaza MOB (3)	Monroe, NC	June 30, 2014	$	7,750

(1) “MOB” means medical office building and “LTACH” means long-term acute care hospital

(2) The Trust accounted for these acquisitions as asset acquisitions and capitalized $0.8 million of total acquisition costs to the basis of the properties

(3) The Trust accounted for these acquisitions as business combinations pursuant to the acquisition method and expensed total acquisition costs of $6.3 million.

(4) The Operating Partnership partially funded the purchase price of these acquisitions by issuing a total of 243,758 OP Units valued at approximately $3.1 million on the date of issuance.

During the three months ended June 30, 2014, the Trust recorded revenues and net income of $4.9 million and $1.7 million, respectively, from its 2014 acquisitions. During the six months ended June 30, 2014, the Trust recorded revenues and net income of $6.0 million and $1.8 million, respectively, from its 2014 acquisitions.

The following table summarizes the acquisition date fair values of the assets acquired and the liabilities assumed, which we determined using level two and level three inputs (in thousands):

	1ST Quarter			2nd Quarter			Total
Land	$	18,331		$	7,275		$	25,606
Building and improvements	121,472			57,401			178,873
In-place lease intangible	7,585			7,061			14,646
Above market in-place lease intangible	891			465			1,356
Below market in-place lease intangible	—			(133		)	(133		)
Investment in unconsolidated entity	1,300			—			1,300
Issuance of OP units	—			(3,135		)	(3,135		)
Mortgage debt assumed	(10,800		)	405			(10,395		)
Lease inducement	—			1,500			1,500
Net assets acquired	$	138,779		$	70,839		$	209,618

These preliminary allocations are subject to revision within the measurement period, not to exceed one year from the date of the acquisitions.

Unaudited Pro Forma Financial Information

The following table illustrates the pro forma combined revenue, net income, and earnings per share —basic and diluted as if the Trust had acquired the above acquisitions as of January 1, 2013 (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
			Predecessor				Predecessor
	2014		2013		2014		2013
Revenue	$	12,439	$	9,280	$	24,978	$	18,323
Net income	1,868		1,822		3,864		2,872
Net income available to common shareholders	1,868		—		4,192		—
Earnings per share - basic and diluted	$	0.07	$	—	$	0.18	$	—
Weighted average common shares - basic and diluted	26,163,982		—		23,744,730		—