Real Property Acquisitions and Development

3 Months Ended

Mar. 31, 2020

Real Property Acquisitions and Development

The total purchase price for all properties acquired has been allocated to the tangible and identifiable intangible assets and liabilities at cost on a relative fair value basis. Liabilities assumed and any associated noncontrolling interests are reflected at fair value. 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 acquisitions, including due diligence costs, fees for legal and valuation services, termination of pre-existing relationships computed based on the fair value of the assets acquired, lease termination fees and other acquisition-related costs. Transaction costs related to asset acquisitions are capitalized as a component of purchase price and all other non-capitalizable costs are reflected in other expenses on our Consolidated Statements of Comprehensive Income.

The following is a summary of our real property investment activity by segment for the periods presented (in thousands):



	Three Months Ended
	March 31, 2020												March 31, 2019
	Seniors Housing Operating			Triple-net			Outpatient Medical			Totals			Seniors Housing Operating			Triple-net			Outpatient Medical			Totals
Land and land improvements	$	15,758		$	—		$	40,847		$	56,605		$	6,831		$	7,427		$	29,304		$	43,562
Buildings and improvements	132,480			765			171,457			304,702			97,759			74,116			60,671			232,546
Acquired lease intangibles	10,810			—			23,823			34,633			4,945			—			10,202			15,147
Right of use assets, net	—			—			—			—			—			—			2,012			2,012
Receivables and other assets	257			—			139			396			264			—			—			264
Total assets acquired ⁽¹⁾	159,305			765			236,266			396,336			109,799			81,543			102,189			293,531
Secured debt	—			—			—			—			(43,209		)	—			—			(43,209		)
Lease liabilities	—			—			—			—			—			—			(961		)	(961		)
Accrued expenses and other liabilities	(671		)	—			(2,036		)	(2,707		)	(848		)	—			(1,952		)	(2,800		)
Total liabilities acquired	(671		)	—			(2,036		)	(2,707		)	(44,057		)	—			(2,913		)	(46,970		)
Noncontrolling interests ⁽²⁾	(2,827		)	—			—			(2,827		)	(7,895		)	(1,056		)	—			(8,951		)
Cash disbursed for acquisitions	155,807			765			234,230			390,802			57,847			80,487			99,276			237,610
Construction in progress additions	29,841			13,929			13,645			57,415			35,756			7,442			14,475			57,673
Less: Capitalized interest	(2,812		)	(941		)	(993		)	(4,746		)	(1,136		)	(390		)	(801		)	(2,327		)
Accruals ⁽³⁾	(2,600		)	—			(1,294		)	(3,894		)	—			—			45			45
Cash disbursed for construction in progress	24,429			12,988			11,358			48,775			34,620			7,052			13,719			55,391
Capital improvements to existing properties	52,503			3,248			13,631			69,382			43,300			3,768			9,867			56,935
Total cash invested in real property, net of cash acquired	$	232,739		$	17,001		$	259,219		$	508,959		$	135,767		$	91,307		$	122,862		$	349,936

⁽¹⁾ Excludes $580,000 and $517,000 of unrestricted and restricted cash acquired during the three months ended March 31, 2020 and 2019, respectively.

⁽²⁾ Includes amounts attributable to both redeemable noncontrolling interests and noncontrolling interests.

⁽³⁾ Represents non-cash accruals for amounts to be paid in future periods for properties that converted, off-set by amounts paid in the current period.

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):



	Three Months Ended
	March 31, 2020		March 31, 2019
Development projects:
Seniors Housing Operating	$	93,188	$	—
Outpatient Medical	19,369		—
Total construction in progress conversions	$	112,557	$	—