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Acquisitions and Dispositions (Tables)
 9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Schedule of acquisitions and aggregate purchase price
Investment activity for the three months ended September 30, 2016 is summarized below:
Property (1)
 
 
 
Location
 
Acquisition
Date
 
Purchase
Price
(in thousands)
Prairie Care MOB
(2)
 
 
Maplewood, MN
 
July 6, 2016
 
$
4,886

RE Loan - El Paso
 
 
 
El Paso, TX
 
July 7, 2016
 
1,300

Springwoods MOB
(2)
(4)
 
Spring, TX
 
July 21, 2016
 
19,925

Equity Buyout - Foundation
(5)
 
 
TX / OK
 
July 26, 2016
 
611

Mezzanine Loan - Hazelwood
 
 
 
Minnetonka, MN
 
July 29, 2016
 
3,375

Jackson, Tennessee Land
(3)
 
 
Jackson, TN
 
August 2, 2016
 
1,000

Unity Portfolio (4 MOBs)
(2)
 
 
Lafayette, IN
 
August 8, 2016
 
28,752

Medical Village at Maitland
(2)
 
 
Orlando, FL
 
August 23, 2016
 
23,211

Tri-State Orthopaedics MOB
(2)
 
 
Evansville, IN
 
August 30, 2016
 
22,000

Noncontrolling Interest Buyout - Great Falls Clinic
(6)
 
 
Great Falls, MT
 
September 30, 2016
 
1,015

Maury Regional Healthcare MOB
(2)
(7)
 
Spring Hill, TN
 
September 30, 2016
 
18,500

Spring Ridge Medical Center
(2)
 
 
Wyomissing, PA
 
September 30, 2016
 
6,100

Doctors Community Hospital MOB
(2)
 
 
Lanham, MD
 
September 30, 2016
 
26,750

Gig Harbor Medical Pavilion
(3)
(4)
 
Gig Harbor, WA
 
September 30, 2016
 
4,766

Midlands One Professional Center
(2)
(4)
 
Papillion, NE
 
September 30, 2016
 
14,856

 
 
 
 
 
 
 
 
$
177,047

(1)
“MOB” means medical office building.
(2)
The Trust accounted for these acquisitions as business combinations pursuant to the acquisition method and expensed total acquisition costs of $4.4 million.
(3)
The Trust accounted for these acquisitions as asset acquisitions and capitalized total acquisition costs of $0.1 million.
(4)
These properties are part of the CHI Portfolio.
(5)
The Trust acquired the previously outstanding 1% noncontrolling interest retained by the predecessor owner on three properties in El Paso, Texas and Oklahoma City, Oklahoma.
(6)
The Trust acquired an additional 3% interest in the Trust’s Great Falls Clinic joint venture from the predecessor owner, increasing the Trust’s total interest to 77.3%.
(7)
The Trust acquired 99.7% of the ownership interest in this property, the remainder of which was retained by the seller.
Schedule of preliminary purchase price allocations of assets acquired and liabilities assumed
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
 
3rd Quarter
 
Total
Land
$
9,240

 
$
19,565

 
$
11,968

 
$
40,773

Building and improvements
168,570

 
623,247

 
139,732

 
931,549

In-place lease intangible
19,158

 
12,911

 
13,132

 
45,201

Above market in-place lease intangible
2,407

 
1,265

 
3,037

 
6,709

Below market in-place lease intangible
(469
)
 
(2,920
)
 
(650
)
 
(4,039
)
Above market in-place ground lease
(218
)
 
(348
)
 
(78
)
 
(644
)
Below market in-place ground lease
2,057

 
20,953

 
3,367

 
26,377

Lease inducement
1,284

 
3,586

 
—

 
4,870

Contingent consideration
—

 
(156
)
 
—

 
(156
)
Receivables
—

 
104

 
—

 
104

Issuance of OP Units
(2,869
)
 
—

 
—

 
(2,869
)
Noncontrolling interest
—

 
—

 
(50
)
 
(50
)
Net assets acquired
$
199,160


$
678,207

 
$
170,458


$
1,047,825
Schedule of pro forma combined revenue, net income, and earnings per share-basic and diluted
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
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
Revenue
$
72,609

 
$
38,643

 
$
219,433

 
$
178,785

Net income
11,099

 
7,078

 
35,565

 
24,840

Net income available to common shareholders
10,638

 
6,845

 
34,079

 
23,679

Earnings per share - basic
$
0.08

 
$
0.05

 
$
0.28

 
$
0.19

Earnings per share - diluted
$
0.08

 
$
0.05

 
$
0.27

 
$
0.19

Weighted average number of shares outstanding - basic
134,608,396

 
134,608,396

 
122,973,862

 
122,973,862

Weighted average number of shares outstanding - diluted
138,880,787

 
138,880,787

 
127,395,989

 
127,395,989