Acquisitions and Dispositions

During the three months ended March 31, 2016, the Trust completed acquisitions of 16 operating healthcare properties and 2 condominium units located in 13 states for an aggregate purchase price of approximately $201.8 million. In addition, the Trust completed a $0.5 million mezzanine loan transaction, resulting in total investment activity of $202.3 million.

Investment activity for the three months ended March 31, 2016 is summarized below:



Property (1)		Location	Acquisition Date	Purchase Price (in thousands)
Randall Road MOB - Suite 380	(3)	Elgin, IL	January 14, 2016	$	704
Great Falls Hospital	(2)	Great Falls, MT	January 25, 2016	29,043
Monterey Medical Center ASC	(2)	Stuart, FL	February 1, 2016	6,900
Physicians Medical Plaza MOB	(2)(4)	Indianapolis, IN	February 1, 2016	8,500
Mezzanine Loan - Davis	(2)	Minnetonka, MN	February 4, 2016	500
Park Nicollet Clinic	(2)	Chanhassen, MN	February 8, 2016	18,600
HEB Cancer Center	(2)	Bedford, TX	February 12, 2016	13,980
Riverview Medical Center	(2)	Lancaster, OH	February 26, 2016	12,800
St. Luke's Cornwall MOB	(2)	Cornwall, NY	February 26, 2016	14,550
HonorHealth Glendale	(3)	Glendale, AZ	March 15, 2016	9,820
Columbia MOB	(2)	Hudson, NY	March 21, 2016	18,450
St Vincent POB 1	(2)	Birmingham, AL	March 23, 2016	10,951
St Vincent POB 2	(2)	Birmingham, AL	March 23, 2016	7,945
St Vincent POB 3	(2)	Birmingham, AL	March 23, 2016	10,455
Emerson Medical Building	(2)	Creve Coeur, MO	March 24, 2016	14,250
Randall Road MOB - Suite 160	(3)	Elgin, IL	March 24, 2016	865
Patient Partners Surgery Center	(2)	Gallatin, TN	March 30, 2016	4,750
Eye Associates of NM - Santa Fe	(3)	Santa Fe, NM	March 31, 2016	8,739
Eye Associates of NM - Albuquerque	(3)	Albuquerque, NM	March 31, 2016	10,536
				$	202,338


(1)	“MOB” means medical office building. “ASC” means ambulatory surgery center. “POB” means professional office building.


(2)	The Trust accounted for these acquisitions as business combinations pursuant to the acquisition method and expensed total acquisition costs of $3.4 million.


(3)	The Trust accounted for these acquisitions as asset acquisitions and capitalized total acquisition costs of $0.2 million.


(4)	The Operating Partnership partially funded the purchase price of this acquisition by issuing a total of 174,085 OP Units valued at approximately $2.9 million in the aggregate on the date of issuance.

For the three months ended March 31, 2016, the Trust recorded revenues and net income from its 2016 acquisitions of $1.8 million and $0.6 million, respectively.

The following table summarizes the acquisition date fair values of the assets acquired and the liabilities assumed, which the Trust determined using Level 2 and Level 3 inputs (in thousands):



Land	$	9,240
Building and improvements	168,570
In-place lease intangible	19,158
Above market in-place lease intangible	2,407
Below market in-place lease intangible	(469		)
Above market in-place ground lease	(218		)
Below market in-place ground lease	2,057
Lease inducement	1,284
Issuance of OP Units	(2,869		)
Net assets acquired	$	199,160

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 effect on net income and earnings per share - basic and diluted as if the Trust had acquired the above acquisitions as of January 1, 2015 (in thousands, except per share amounts):



	Three Months Ended March 31,
	2016		2015
Revenue	$	48,264	$	30,464
Net income	6,554		1,326
Net income available to common shareholders	5,477		1,166
Earnings per share - basic	$	0.05	$	0.01
Earnings per share - diluted	$	0.05	$	0.01
Weighted average number of shares outstanding - basic	102,704,008		102,704,008
Weighted average number of shares outstanding - diluted	107,148,380		107,148,380