Real Property Acquisitions and Development

9 Months Ended

Sep. 30, 2016

Real Property Acquisitions and Development [Abstract]

Real Property Acquisitions and Development

3. Real Property Acquisitions and Development

The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets, liabilities and noncontrolling interests based upon their respective fair values in accordance with our accounting policies. The results of operations for these acquisitions have been included in our consolidated results of operations since the date of acquisition and are a component of the appropriate segments. Transaction costs primarily represent costs incurred with property acquisitions, including due diligence costs, fees for legal and valuation services and termination of pre-existing relationships computed based on the fair value of the assets acquired, lease termination fees and other acquisition-related costs. Certain of our subsidiaries’ functional currencies are the local currencies of their respective countries. See Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 for information regarding our foreign currency policies.

Triple-net Activity

		Nine Months Ended
(In thousands)		September 30, 2016⁽¹⁾			September 30, 2015
Land and land improvements			$	21,713		$	64,655
Buildings and improvements				220,274			727,946
Acquired lease intangibles				2,876			3,888
Restricted cash				-			6
Receivables and other assets				-			60
	Total assets acquired			244,863			796,555
Accrued expenses and other liabilities				(2,145)			(2,447)
	Total liabilities assumed			(2,145)			(2,447)
Noncontrolling interests				(3,162)			-
Non-cash acquisition related activity⁽²⁾				(51,733)			(2,780)
	Cash disbursed for acquisitions			187,823			791,328
Construction in progress additions				133,611			96,403
Less:	Capitalized interest			(6,263)			(4,453)
	Foreign currency translation			(3,179)			73
Cash disbursed for construction in progress				124,169			92,023
Capital improvements to existing properties				21,447			35,042
	Total cash invested in real property, net of cash acquired		$	333,439		$	918,393

(1) Includes acquisitions with an aggregate purchase price of $183,547,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) For the nine months ended September 30, 2016, $45,044,000 relates to the acquisition of assets previously financed as real estate loans receivable and $6,630,000 previously financed as equity investments.

Seniors Housing Operating Activity


		Nine Months Ended
(In thousands)		September 30, 2016⁽¹⁾			September 30, 2015
Land and land improvements			$	122,649		$	98,444
Building and improvements				1,108,195			1,229,017
Acquired lease intangibles				90,771			74,091
Restricted cash				137			5,567
Receivables and other assets				2,179			23,928
	Total assets acquired⁽²⁾			1,323,931			1,431,047
Secured debt				(49,381)			(234,597)
Accrued expenses and other liabilities				(12,328)			(19,016)
	Total liabilities assumed			(61,709)			(253,613)
Noncontrolling interests				(1,089)			(86,842)
Non-cash acquisition related activity⁽³⁾				(17,477)			-
	Cash disbursed for acquisitions			1,243,656			1,090,592
Construction in progress additions				139,160			39,493
Less:	Capitalized interest			(3,923)			(1,116)
	Foreign currency translation			(5,953)			(1,345)
Cash disbursed for construction in progress				129,284			37,032
Capital improvements to existing properties				84,444			61,911
	Total cash invested in real property, net of cash acquired		$	1,457,384		$	1,189,535

(1) Includes acquisitions with an aggregate purchase price of $1,194,765,000 for which the allocation of the purchase price consideration is preliminary and subject to change.
(2) Excludes $135,000 and $3,390,000 of cash acquired during the nine months ended September 30, 2016 and 2015, respectively.
(3) Relates to the acquisition of assets previously financed as equity investments.

Outpatient Medical Activity

		Nine Months Ended
(In thousands)		September 30, 2016			September 30, 2015
Land and land improvements			$	1,466	$	47,756
Buildings and improvements				27,272		723,574
Acquired lease intangibles				4,592		19,373
	Total assets acquired⁽¹⁾			33,330		790,703
Secured debt				-		(112,000)
Accrued expenses and other liabilities				(1,670)		(2,743)
	Total liabilities assumed			(1,670)		(114,743)
Noncontrolling interests				-		(68,535)
Non-cash acquisition activity⁽²⁾				(15,013)		-
	Cash disbursed for acquisitions			16,647		607,425
Construction in progress additions				81,843		38,919
Less:	Capitalized interest			(2,588)		(742)
	Accruals⁽³⁾			(7,336)		(1,921)
Cash disbursed for construction in progress				71,919		36,256
Capital improvements to existing properties				35,309		25,687
	Total cash invested in real property		$	123,875	$	669,368

(1) Excludes $0 and $4,372,000 of cash acquired during the nine months ended September 30, 2016 and 2015, respectively.
(2) Relates to an acquisition of assets previously financed as a real estate loan. Refer to Note 6 for additional information.
(3) Represents non-cash consideration accruals for amounts to be paid in future periods relating to properties that converted in the periods noted above.

Construction Activity

The following is a summary of the construction projects that were placed into service and began generating revenues during the periods presented (in thousands):


			Nine Months Ended
			September 30, 2016			September 30, 2015
	Development projects:
		Triple-net		$	24,535		$	85,902
		Seniors housing operating			-			19,869
		Outpatient medical			44,113			16,592
	Total development projects				68,648			122,363
	Expansion projects				2,879			38,808
Total construction in progress conversions				$	71,527		$	161,171