Real Property Acquisitions and Development

9 Months Ended

Sep. 30, 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):


	Nine Months Ended
	September 30, 2020								September 30, 2019
	Seniors Housing Operating		Triple-net		Outpatient Medical		Totals		Seniors Housing Operating		Triple-net		Outpatient Medical		Totals
Land and land improvements	$	15,758	$	—	$	43,252	$	59,010	$	107,945	$	14,172	$	187,301	$	309,418
Buildings and improvements	132,481		765		171,630		304,876		1,138,484		125,763		1,324,371		2,588,618
Acquired lease intangibles	10,810		—		23,823		34,633		61,163		—		104,309		165,472
Construction in progress	—		—		—		—		36,174		—		—		36,174
Real property held for sale	—		—		—		—		17,435		—		—		17,435
Right of use assets, net	—		—		—		—		—		—		58,377		58,377
Total net real estate assets	159,049		765		238,705		398,519		1,361,201		139,935		1,674,358		3,175,494
Receivables and other assets	257		—		139		396		6,742		—		419		7,161
Total assets acquired (1)	159,306		765		238,844		398,915		1,367,943		139,935		1,674,777		3,182,655
Secured debt	—		—		—		—		(43,209)		—		—		(43,209)
Lease liabilities	—		—		—		—		—		—		(47,740)		(47,740)
Accrued expenses and other liabilities	(671)		—		(2,043)		(2,714)		(9,639)		(100)		(23,483)		(33,222)
Total liabilities acquired	(671)		—		(2,043)		(2,714)		(52,848)		(100)		(71,223)		(124,171)
Noncontrolling interests (2)	(2,827)		—		—		(2,827)		(39,570)		(1,056)		(1,201)		(41,827)
Non-cash acquisition related activity(3)	—		—		—		—		(11,889)		—		—		(11,889)
Cash disbursed for acquisitions	155,808		765		236,801		393,374		1,263,636		138,779		1,602,353		3,004,768
Construction in progress additions	75,617		33,021		33,593		142,231		188,178		37,978		42,316		268,472
Less: Capitalized interest	(7,760)		(2,569)		(2,905)		(13,234)		(5,972)		(1,565)		(2,867)		(10,404)
Accruals (4)	(1,376)		—		(922)		(2,298)		—		—		45		45
Cash disbursed for construction in progress	66,481		30,452		29,766		126,699		182,206		36,413		39,494		258,113
Capital improvements to existing properties	130,465		5,971		46,888		183,324		160,260		10,337		35,816		206,413
Total cash invested in real property, net of cash acquired	$	352,754	$	37,188	$	313,455	$	703,397	$	1,606,102	$	185,529	$	1,677,663	$	3,469,294

(1) Excludes $580,000 and $1,910,000 of unrestricted and restricted cash acquired during the nine months ended September 30, 2020 and 2019, respectively.

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

(3) Relates to the acquisition of assets previously recognized as investments in unconsolidated entities.

(4) 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):


	Nine Months Ended
	September 30, 2020		September 30, 2019
Development projects:
Seniors Housing Operating	$	93,188	$	28,117
Triple-net	59,201		—
Outpatient Medical	43,493		—
Total development projects	195,882		28,117
Expansion projects	48,600		—
Total construction in progress conversions	$	244,482	$	28,117