Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Redevelopment Activity

The Company is in the process of redeveloping two medical office buildings in Tennessee and began constructing an expansion of one of the buildings in the second quarter of 2015. The Company spent approximately $12.4 million on these properties through June 30, 2015, including the acquisition of a land parcel for $4.3 million on which the Company is building a parking garage. The total estimated budget of the redevelopment of these properties is expected to be $51.8 million and the project is expected to be completed in the first quarter of 2017.

The Company is in the process of redeveloping a medical office building in Alabama, which includes the construction of a parking garage. Construction began in the second quarter of 2015. The total redevelopment budget is expected to be $15.4 million, of which $3.1 million has been spent as of June 30, 2015. Construction is expected to be completed in the fourth quarter of 2015.

The table below details the Company’s construction activity as of June 30, 2015. The information included in the table below represents management’s estimates and expectations at June 30, 2015, which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results.



			As of June 30, 2015
(Dollars in thousands)	Number of Properties	Estimated Completion Date	Construction in Progress Fundings During the Six Months Ended		Total Funded During the Six Months Ended		Total Amount Funded		Estimated Remaining Fundings		Estimated Total Investment		Approximate Square Feet
Construction Activity
Nashville, TN	2	Q1 2017	$	6,560	$	7,992	$	12,376	$	39,424	$	51,800	294,000
Birmingham, AL	1	Q4 2015	1,724		3,123		3,123		12,277		15,400		138,000
Total			$	8,284	$	11,115	$	15,499	$	51,701	$	67,200	432,000

Casualty Loss

The Company owns a medical office building in Oklahoma that sustained damage from a tornado on May 6, 2015. As of June 30, 2015, the Company estimated its expenditures related to returning the property to its previous operating condition to be approximately $2.2 million. The Company estimates recoveries for restoration costs of approximately $2.1 million. In addition, as of June 30, 2015, the Company estimated that it will receive insurance proceeds related to lost rental revenue of approximately $0.2 million for the period of May 6, 2015 to June 30, 2015. This amount was recognized in rental income on the Company's Condensed Consolidated Statements of Operations. The Company believes that it is probable that it will recover any losses due to business interruption and expects all repairs to be completed and tenants to return to occupancy throughout the remainder of the year.