Effective January 1, 2018, with our adoption of ASU 2017-01, transaction costs incurred for asset acquisitions are capitalized as a component of purchase price and all other non-capitalizable costs are reflected in “Operating Expenses” on our consolidated statements of operations. Certain acquisitions that occurred prior to January 1, 2018, were accounted for as business combinations.

During the six months ended June 30, 2018, the Company completed acquisitions of 3 operating healthcare properties and 1 land parcel located in 4 states for an aggregate purchase price of approximately $170.7 million. In addition, the Company completed a noncontrolling interest buyout for $6.4 million and a $2.0 million loan transaction, resulting in total investment activity of approximately $179.1 million.

During the three months ended June 30, 2018, the Company completed the acquisition of the HMG Medical Plaza located in Kingsport, TN for approximately $71.3 million.

For the three months ended June 30, 2018, the Company recorded revenues and net income from its 2018 acquisitions of $3.5 million and $1.5 million, respectively. For the six months ended June 30, 2018, the Company recorded revenues and net income from its 2018 acquisitions of $5.4 million and $2.0 million, respectively.

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



	1st Quarter			2nd Quarter		Total
Land	$	7,684		$	—	$	7,684
Building and improvements	82,180			64,197		146,377
In-place lease intangibles	13,202			8,923		22,125
Above market in-place lease intangibles	969			—		969
Below market in-place lease intangibles	(959		)	—		(959		)
Prepaid expenses	(2,628		)	—		(2,628		)
Issuance of Series A Preferred Units	(22,651		)	—		(22,651		)
Net assets acquired	$	77,797		$	73,120	$	150,917

During the three months ended March 31, 2018, the Company sold two medical office buildings located in Michigan and Florida for approximately $2.5 million and recognized a net gain on the sale of approximately $0.1 million. During the three months ended June 30, 2018, the Company sold 15 medical office buildings located in three states for approximately $90.7 million and recognized a net loss on the sale of approximately $2.6 million.

The following table summarizes revenues and net income related to the disposed properties for the periods presented (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018		2017
Revenues	$	2,747		$	3,056	5,448		6,129

Income before loss on sale of investment properties:	526			1,099		973		2,222
Loss on sale of investment properties, net	(2,632		)	—		(2,563	)	—
Net (loss) income	$	(2,106	)	$	1,099	(1,590	)	2,222

As of June 30, 2018, the Company classified one portfolio comprised of 17 properties, as held for sale. In accordance with this classification, the following assets are classified as held for sale in the accompanying consolidated balance sheets at June 30, 2018.



Land and improvements	$	12,856
Building and improvements	91,510
Tenant improvements	67
Acquired lease intangibles	21,802
Other assets	2,908
Real estate held for sale before accumulated deprecation	129,143
Accumulated depreciation	(17,732		)
Real estate held for sale	$	111,411