Real Estate Investments

2017 Acquisitions

The following table details the Company's acquisitions for the six months ended June 30, 2017 (dollars in millions):



Location	Type ⁽¹⁾	Date Acquired	Purchase Price		Mortgage Note Payable Assumed ⁽²⁾			Cash Consideration ⁽³⁾		Real Estate		Other ⁽⁴⁾			Square Footage
St. Paul, Minnesota	MOB	3/6/17	$	13.5	$	—		$	13.5	$	13.3	$	0.2		34,608
San Francisco, California	MOB	6/12/17	26.8		—			26.8		26.8		—			75,649
Washington, D.C.	MOB	6/13/17	24.0		(12.1		)	12.5		24.8		(0.2		)	62,379
Total acquisitions			$	64.3	$	(12.1	)	$	52.8	$	64.9	$	—		172,636

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(1)	MOB = medical office building


(2)	The mortgage note payable assumed in the acquisition does not reflect the fair value adjustments totaling $0.4 million recorded by the Company upon acquisition (included in Other).


(3)	Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.


(4)	Includes assets acquired, liabilities assumed, and intangibles recognized at acquisition.

2017 Dispositions

The following table details the Company's dispositions for the six months ended June 30, 2017 (dollars in millions):



Location	Type ⁽¹⁾	Date Disposed	Sales Price		Closing Adjustments			Net Proceeds		Net Real Estate Investment		Other (including receivables)⁽³⁾		Gain		Square Footage
Evansville, Indiana	OTH	3/6/17	$	6.4	$	—		$	6.4	$	1.1	$	—	$	5.3	29,500
Columbus, Georgia ⁽²⁾	MOB	3/7/17	0.6		—			0.6		0.6		—		—		12,000
Las Vegas, Nevada ⁽²⁾	MOB	3/30/17	5.5		(0.7		)	4.8		2.2		0.3		2.3		18,147
Texas (3 properties)	IRF	3/31/17	69.5		(1.6		)	67.9		46.9		5.2		15.8		169,722
Chicago, Illinois ⁽²⁾	MOB	6/16/17	0.5		(0.1		)	0.4		0.4		—		—		5,100
San Antonio, Texas ⁽²⁾	IRF	6/29/17	14.5		(0.2		)	14.3		5.1		0.9		8.3		39,786
Roseburg, Oregon	MOB	6/29/17	23.2		(0.6		)	22.6		14.5		0.3		7.8		62,246
Total dispositions			$	120.2	$	(3.2	)	$	117.0	$	70.8	$	6.7	$	39.5	336,501

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(1)	OTH = other; MOB = medical office building; IRF = inpatient rehabilitation facility


(2)	Previously classified as held for sale.


(3)	Includes straight-line rent receivables, leasing commissions and lease inducements.

Subsequent Acquisition

On July 31, 2017, the Company acquired a 42,780 square foot medical office building in Los Angeles, California for a purchase price of $16.3 million.

Potential Disposition

The Company is under contract to sell an off-campus, 79,980 square foot medical office building located in St. Louis, Missouri. The Company's net investment in the property is approximately $7.4 million at June 30, 2017. The sales price of the building will be approximately $2.6 million. In July 2017, the sale became probable based on the expiration of the due diligence period and therefore, the Company reclassified the property to held for sale and recognized a $5.2 million impairment using level one input.

Assets Held for Sale

At June 30, 2017 and December 31, 2016, the Company had one and two properties, respectively, classified as held for sale. During the six months ended June 30, 2017, the Company reclassified three properties to held for sale and four properties were sold. A summary of each of the properties reclassified as held for sale is below:


•	a 78,731 square foot inpatient rehabilitation facility located in Pittsburgh, Pennsylvania reclassified to held for sale in connection with management's decision to sell the property;


•	a 39,786 square foot inpatient rehabilitation facility located in San Antonio, Texas reclassified to held for sale in connection with management's decision to sell the property. The Company sold this property in the second quarter of 2017 and recognized an $8.3 million gain on the disposition; and

•

a 5,100 square foot medical office building located in Chicago, Illinois reclassified to held for sale in connection with management's decision to sell the property. In the first quarter of 2017, the Company recorded an impairment charge of $0.3 million using level one inputs. The Company sold this property in the second quarter of 2017 and recognized an immaterial impairment loss on the disposition.

The table below reflects the assets and liabilities of the properties classified as held for sale and discontinued operations as of June 30, 2017 and December 31, 2016:



(Dollars in thousands)	June 30, 2017			December 31, 2016
Balance Sheet data:
Land	$	1,125		$	1,362
Buildings, improvements and lease intangibles	18,231			4,410
	19,356			5,772
Accumulated depreciation	(10,657		)	(2,977		)
Real estate assets held for sale, net	8,699			2,795
Other assets, net (including receivables)	68			297
Assets held for sale and discontinued operations, net	$	8,767		$	3,092

Accounts payable and accrued liabilities	$	186		$	22
Other liabilities	213			592
Liabilities of properties held for sale and discontinued operations	$	399		$	614

Discontinued Operations

The following table represents the results of operations of the properties included in discontinued operations on the Company's Condensed Consolidated Statements of Income for the three and six months ended June 30, 2017 and 2016.



	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2017		2016			2017			2016
Statements of Income data:
Revenues
Rental income	$	—	$	—		$	—		$	—
	—		—			—			—
Expenses
Property operating	—		19			17			27
	—		19			17			27
Other Income (Expense)
Interest and other income, net	—		—			—			—
	—		—			—			—
Discontinued Operations
Loss from discontinued operations	—		(19		)	(17		)	(27		)
Gain on sales of real estate assets	—		7			5			7
Loss from Discontinued Operations	$	—	$	(12	)	$	(12	)	$	(20	)