Acquisitions and Dispositions

During the six months ended June 30, 2016, the Trust completed acquisitions of 71 operating healthcare properties and 2 condominium units located in 20 states for an aggregate purchase price of approximately $878.4 million. In addition, the Trust completed $3.5 million of loan transactions, resulting in total investment activity of $881.9 million.

These figures include the completed acquisition of 46 of the properties in the CHI Portfolio for an aggregate purchase price of $615.5 million. This aggregate purchase price does not include near-term capital expenditure commitments of $12.9 million and committed tenant improvement allowances of $8.9 million.

Investment activity for the three months ended June 30, 2016 is summarized below:



Property (1)			Location	Acquisition Date	Purchase Price (in thousands)
Tinseltown - Loan Draws			Jacksonville, FL		$	1,638
Gardendale Surgery Center	(2)		Gardendale, AL	April 11, 2016	7,450
HealthEast - Curve Crest	(2)		Stillwater, MN	April 14, 2016	4,144
HealthEast - Victor Gardens	(2)		Hugo, MN	April 14, 2016	6,025
NOMS - Clyde	(3)		Clyde, OH	May 10, 2016	6,342
Blandford MOB	(3)	(4)	Little Rock, AR	May 11, 2016	2,580
Cardwell MOB	(2)	(4)	Lufkin, TX	May 11, 2016	8,444
Dacono Neighborhood Health	(3)	(4)	Dacono, CO	May 11, 2016	5,152
Franciscan Health	(3)	(4)	Tacoma, WA	May 11, 2016	9,772
Grand Island Specialty Clinic	(3)	(4)	Grand Island, NE	May 11, 2016	2,891
Hot Springs MOB	(2)	(4)	Hot Springs Village, AR	May 11, 2016	3,626
Jewish Medical Center East	(3)	(4)	Louisville, KY	May 11, 2016	85,000
Jewish Medical Center South MOB - 1	(3)	(4)	Shepherdsville, KY	May 11, 2016	17,021
Jewish Medical Plaza I	(2)	(4)	Louisville, KY	May 11, 2016	9,650
Jewish Medical Plaza II	(2)	(4)	Louisville, KY	May 11, 2016	6,124
Jewish OCC	(3)	(4)	Louisville, KY	May 11, 2016	35,600
Lakeside Three Professional Center	(2)	(4)	Omaha, NE	May 11, 2016	1,581
Lexington Surgery Center	(2)	(4)	Lexington, KY	May 11, 2016	20,169
Medical Arts Pavilion	(2)	(4)	Lufkin, TX	May 11, 2016	6,304
Memorial Outpatient Center	(3)	(4)	Lufkin, TX	May 11, 2016	4,958
Midlands Two Professional Center	(2)	(4)	Papillion, NE	May 11, 2016	1,341
Parkview MOB	(2)	(4)	Little Rock, AR	May 11, 2016	5,060
Peak One ASC	(2)	(4)	Frisco, CO	May 11, 2016	6,587



Physicians Medical Center	(2)	(4)	Tacoma, WA	May 11, 2016	6,782
St. Alexius - Minot Medical Plaza	(3)	(4)	Minot, ND	May 11, 2016	26,570
St. Clare Medical Pavilion	(2)	(4)	Lakewood, WA	May 11, 2016	10,617
St. Joseph Medical Pavilion	(2)	(4)	Tacoma, WA	May 11, 2016	13,320
St. Joseph Office Park	(2)	(4)	Lexington, KY	May 11, 2016	17,228
St. Mary - Caritas Medical II	(2)	(4)	Louisville, KY	May 11, 2016	5,603
St. Mary - Caritas Medical III	(2)	(4)	Louisville, KY	May 11, 2016	842
Thornton Neighborhood Health	(3)	(4)	Thornton, CO	May 11, 2016	3,875
Medical Village at Kissimmee	(2)		Kissimmee, FL	May 26, 2016	4,923
Medical Village at Leesburg	(2)		Leesburg, FL	May 26, 2016	4,576
St. Francis MOB	(2)	(4)	Federal Way, WA	June 2, 2016	14,287
Children's Hospital MOB	(2)		Milwaukee, WI	June 3, 2016	5,850
Jewish Medical Center South MOB - 2	(2)		Shepherdsville, KY	June 8, 2016	4,343
Good Samaritan North Annex Building	(3)	(4)	Kearney, NE	June 28, 2016	2,874
NE Heart Institute Medical Building	(3)	(4)	Lincoln, NE	June 28, 2016	19,600
St. Vincent West MOB	(3)	(4)	Little Rock, AR	June 29, 2016	14,120
Meridan MOB	(3)	(4)	Englewood, CO	June 29, 2016	17,329
St. Mary - Caritas Medical I	(2)	(4)	Louisville, KY	June 29, 2016	8,864
St. Alexius - Medical Arts Pavilion	(3)	(4)	Bismarck, ND	June 29, 2016	12,983
St. Alexius - Mandan Clinic	(3)	(4)	Mandan, ND	June 29, 2016	8,390
St. Alexius - Orthopaedic Center	(2)	(4)	Bismarck, ND	June 29, 2016	14,727
St. Alexius - Rehab Center	(3)	(4)	Bismarck, ND	June 29, 2016	6,215
St. Alexius - Tech & Ed	(3)	(4)	Bismarck, ND	June 29, 2016	16,680
Good Samaritan MOB	(2)	(4)	Kearney, NE	June 29, 2016	24,198
Lakeside Two Professional Building	(2)	(4)	Omaha, NE	June 29, 2016	13,691
Lakeside Wellness Center	(3)	(4)	Omaha, NE	June 29, 2016	10,138
McAuley Center	(3)	(4)	Omaha, NE	June 29, 2016	18,382
Memorial Health Center	(3)	(4)	Grand Island, NE	June 29, 2016	34,317
Missionary Ridge MOB	(2)	(4)	Chattanooga, TN	June 29, 2016	7,635
Pilot Medical Center	(3)		Birmingham, AL	June 29, 2016	17,351
St. Joseph Medical Clinic	(2)	(4)	Tacoma, WA	June 30, 2016	16,444
Woodlands Medical Arts Center	(2)	(4)	The Woodlands, TX	June 30, 2016	21,227
FESC MOB	(3)	(4)	Tacoma, WA	June 30, 2016	16,748
Mezzanine Loan - Catalyst			Pensacola, FL	June 30, 2016	1,340
					$	679,528


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


(2)	The Trust accounted for these acquisitions as business combinations pursuant to the acquisition method and expensed total acquisition costs of $3.3 million.


(3)	The Trust accounted for these acquisitions as asset acquisitions and capitalized total acquisition costs of $1.7 million.


(4)	These acquisitions are part of the CHI Portfolio.

For the three months ended June 30, 2016, the Trust recorded revenues and net income from its 2016 acquisitions of $10.4 million and $2.4 million, respectively. For the six months ended June 30, 2016, the Trust recorded revenues and net income from its 2016 acquisitions of $12.2 million and $3.0 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):



	1st Quarter			2nd Quarter			Total
Land	$	9,240		$	19,565		$	28,805
Building and improvements	168,570			623,247			791,817
In-place lease intangible	19,158			12,911			32,069
Above market in-place lease intangible	2,407			1,265			3,672
Below market in-place lease intangible	(469		)	(2,920		)	(3,389		)
Above market in-place ground lease	(218		)	(348		)	(566		)
Below market in-place ground lease	2,057			20,953			23,010
Lease inducement	1,284			3,586			4,870
Contingent consideration	—			(156		)	(156		)
Receivables	—			104			104
Issuance of OP Units	(2,869		)	—			(2,869		)
Net assets acquired	$	199,160		$	678,207		$	877,367

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 June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenue	$	72,239	$	53,399	$	139,493	$	108,515
Net income	14,827		8,680		28,978		15,586
Net income available to common shareholders	14,020		7,157		26,968		14,627
Earnings per share - basic	$	0.11	$	0.05	$	0.23	$	0.12
Earnings per share - diluted	$	0.10	$	0.05	$	0.22	$	0.12
Weighted average number of shares outstanding - basic	131,481,329		131,481,329		117,092,668		117,092,668
Weighted average number of shares outstanding - diluted	135,944,722		135,944,722		121,575,247		121,575,247