Real Property Acquisitions and Development

3 Months Ended

Mar. 31, 2021

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, 2021								March 31, 2020
	Seniors Housing Operating		Triple-net		Outpatient Medical		Totals		Seniors Housing Operating		Triple-net		Outpatient Medical		Totals
Land and land improvements	$	1,240	$	24,154	$	2,273	$	27,667	$	15,758	$	—	$	40,847	$	56,605
Buildings and improvements	3,491		170,362		10,570		184,423		132,480		765		171,457		304,702
Acquired lease intangibles	339		—		1,439		1,778		10,810		—		23,823		34,633




Receivables and other assets	34		—		—		34		257		—		139		396
Total assets acquired (1)	5,104		194,516		14,282		213,902		159,305		765		236,266		396,336


Accrued expenses and other liabilities	—		(8,703)		(36)		(8,739)		(671)		—		(2,036)		(2,707)
Total liabilities acquired	—		(8,703)		(36)		(8,739)		(671)		—		(2,036)		(2,707)
Noncontrolling interests (2)	—		(2,056)		—		(2,056)		(2,827)		—		—		(2,827)

Cash disbursed for acquisitions	5,104		183,757		14,246		203,107		155,807		765		234,230		390,802
Construction in progress additions	38,373		31,809		7,601		77,783		29,841		13,929		13,645		57,415
Less: Capitalized interest	(2,980)		(524)		(992)		(4,496)		(2,812)		(941)		(993)		(4,746)
Accruals (3)	7		—		311		318		(2,600)		—		(1,294)		(3,894)
Cash disbursed for construction in progress	35,400		31,285		6,920		73,605		24,429		12,988		11,358		48,775
Capital improvements to existing properties	(3,159)		25,295		6,644		28,780		52,503		3,248		13,631		69,382
Total cash invested in real property, net of cash acquired	$	37,345	$	240,337	$	27,810	$	305,492	$	232,739	$	17,001	$	259,219	$	508,959

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

(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, 2021		March 31, 2020
Development projects:
Seniors Housing Operating	$	—	$	93,188
Triple-net	22,990		—
Outpatient Medical	—		19,369


Total construction in progress conversions	$	22,990	$	112,557