Acquisitions, Dispositions and Mortgage Repayments (Tables)

12 Months Ended

Dec. 31, 2017

Acquisitions and Dispositions and Mortgage Repayments [Abstract]

The following table details the Company's acquisitions for the year ended December 31, 2016:



(Dollars in millions)	Type ⁽¹⁾	Date Acquired	Purchase Price		Mortgage Notes Payable Assumed ⁽²⁾			Cash Consideration ⁽³⁾		Real Estate		Other ⁽⁴⁾			Square Footage (unaudited)
Real estate acquisitions
Seattle, Washington	MOB	3/31/16	$	38.3	$	—		$	37.7	$	37.7	$	—		69,712
Seattle, Washington	MOB	4/29/16	21.6		—			18.8		20.1		(1.3		)	46,637
Los Angeles, California	MOB	5/13/16	20.0		(13.2		)	6.5		20.4		(0.7		)	63,012
Seattle, Washington	MOB	9/12/16	53.1		—			53.0		54.6		(1.6		)	87,462
Washington, D.C. ⁽⁵⁾	MOB	9/26/16	45.2		—			45.1		43.7		1.4			103,783
Baltimore, Maryland ⁽⁶⁾	MOB	10/11/16	36.2		—			36.4		36.4		—			113,631
Seattle, Washington	MOB	10/17/16	9.8		—			9.8		9.9		(0.1		)	29,753
Seattle, Washington	MOB	12/21/16	5.1		—			5.1		5.2		(0.1		)	20,740
St. Paul, Minnesota	MOB	12/21/16	12.6		—			12.5		11.3		1.2			48,281
			$	241.9	$	(13.2	)	$	224.9	$	239.3	$	(1.2	)	583,011

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(1)	MOB = medical office building


(2)	The mortgage notes payable assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million recorded by the Company upon acquisition (included in Other).


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


(4)	Includes other assets acquired, liabilities assumed, intangibles recognized at acquisition and fair value adjustments on debt assumed.


(5)	A director of the Company serves as the Chief Executive Officer of the Inova Health System. As part of this transaction, the Company assumed a ground lease and tenant leases with Loudon Hospital Center, an affiliate of Inova Health System.


(6)	Includes two properties.

The following table details the Company's acquisitions for the year ended December 31, 2017:



(Dollars in millions)	Type ⁽¹⁾	Date Acquired	Purchase Price		Mortgage Notes Payable Assumed ⁽²⁾			Cash Consideration⁽³⁾		Real Estate		Other ⁽⁴⁾			Square Footage (Unaudited)
Real estate acquisitions
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
Los Angeles, California	MOB	7/31/17	16.3		—			16.7		16.9		(0.2		)	42,780
Atlanta, Georgia	MOB	11/1/17	25.5		—			25.5		26.3		(0.8		)	76,944
Atlanta, Georgia	MOB	11/1/17	30.3		—			30.7		30.7		—			74,024
Atlanta, Georgia ⁽⁵⁾	MOB	11/1/17	49.7		—			50.9		47.5		3.4			118,180
Atlanta, Georgia	MOB	11/1/17	6.7		—			6.7		6.7		—			19,732
Seattle, Washington	MOB	11/1/17	12.7		—			12.6		12.8		(0.2		)	26,345
Atlanta, Georgia ⁽⁵⁾	MOB	12/13/17	25.8		(10.5		)	15.3		22.0		3.8			59,427
Atlanta, Georgia	MOB	12/13/17	15.4		(4.7		)	10.8		15.7		(0.2		)	40,171
Atlanta, Georgia ⁽⁵⁾	MOB	12/18/17	26.3		(11.8		)	14.5		24.6		1.7			66,984
Atlanta, Georgia	MOB	12/18/17	14.2		(6.7		)	7.6		14.5		(0.2		)	40,324
Chicago, Illinois	MOB	12/18/17	28.7		—			27.7		28.5		(0.8		)	99,526
Seattle, Washington	MOB	12/18/17	8.8		—			8.8		9.0		(0.2		)	32,828
Austin, Texas⁽⁶⁾	MOB	12/21/17	2.5		—			2.5		2.5		—			7,972
			$	327.2	$	(45.8	)	$	283.1	$	322.6	$	6.3		877,873

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(1)	MOB = medical office building


(2)	The mortgage notes payable assumed in the acquisitions do not reflect the fair value adjustments totaling $0.6 million in aggregate 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 other assets acquired, liabilities assumed, intangibles recognized at acquisition and fair value adjustments on debt assumed.


(5)	The "Other" column includes the equity investment in limited liability companies that own two parking garages.


(6)	The Company acquired additional ownership interests in an existing building bringing the Company's ownership to 69.4%.

Summary of assets acquired and liabilities assumed

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2016 as of the acquisition date:



	Estimated Fair Value			Estimated Useful Life
	(In millions)			(In years)
Building	$	216.8		20.0-35.0
Land	9.7			—
Intangibles:
At-market lease intangibles	12.8			2.7-10.3
Above-market lease intangibles	0.9			0.7-3.8
Below-market lease intangibles	(0.4		)	1.4-9.4
Above-market ground lease intangibles	(1.6		)	99.0
Below-market ground lease intangibles	2.0			36.8-99.0
Total intangibles	13.7
Mortgage notes payable assumed, including fair value adjustments	(14.0		)
Other assets acquired	0.5
Accounts payable, accrued liabilities and other liabilities assumed	(1.8		)
Total cash paid	$	224.9

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2017 as of the acquisition date:



	Estimated Fair Value			Estimated Useful Life
	(In millions)			(In years)
Building	$	272.1		15.0-37.0
Land	11.7			—
Land Improvements	1.6			5.0-12.0
Intangibles:
At-market lease intangibles	37.2			2.1-12.6
Below-market lease intangibles	(0.9		)	8.5-15.0
Below-market ground lease intangibles	0.4			36.8-99.0
Total intangibles	36.7
Mortgage notes payable assumed, including fair value adjustments	(46.4		)
Other assets acquired	0.4
Equity investment in joint ventures	8.7
Accounts payable, accrued liabilities and other liabilities assumed	(1.7		)
Total cash paid	$	283.1

Summary of dispositions

2017 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2017:



(Dollars in millions)	Type ⁽¹⁾	Date Disposed	Sales Price		Closing Adjustments			Net Proceeds		Net Real Estate Investment		Other (including receivables)⁽³⁾		Gain/ (Impairment)			Square Footage (Unaudited)
Real estate dispositions
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 ⁽⁴⁾	MOB	6/16/17	0.5		(0.1		)	0.4		0.4		—		—			5,100
San Antonio, Texas	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
St. Louis, Missouri	MOB	9/7/17	2.5		(0.1		)	2.4		7.4		0.1		(5.1		)	79,980
Total dispositions			$	122.7	$	(3.3	)	$	119.4	$	78.2	$	6.8	$	34.4		416,481

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


(2)	Previously classified as held for sale.


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


(4)	The Company recorded an impairment of approximately $0.3 million in the first quarter of 2017 upon management's decision to sell.

2016 Real Estate Asset Dispositions

The following table details the Company's dispositions for the year ended December 31, 2016:



(Dollars in millions)	Type ⁽¹⁾	Date Disposed	Sales Price		Closing Adjustments			Net Proceeds		Net Real Estate Investment		Other (including receivables) ⁽²⁾		Gain		Square Footage (Unaudited)
Real estate dispositions
Kansas City, Kansas	MOB	10/14/16	$	15.1	$	—		$	15.1	$	7.2	$	0.3	$	7.6	70,908
Nashville, Tennessee	MOB	10/28/16	8.8		(0.2		)	8.6		6.3		0.2		2.1		45,274
Altoona, Pennsylvania	IRF	12/20/16	21.5		(0.4		)	21.1		12.4		0.6		8.1		64,032
Harrisburg, Pennsylvania	IRF	12/20/16	24.2		(0.6		)	23.6		8.2		0.4		15.0		79,836
Phoenix, Arizona	IRF	12/20/16	22.3		—			22.3		13.5		1.4		7.4		51,903
Atlanta, Georgia	MOB	12/22/16	2.8		(0.2		)	2.6		1.8		—		0.8		8,749
Total dispositions			$	94.7	$	(1.4	)	$	93.3	$	49.4	$	2.9	$	41.0	320,702

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


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