10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended:	June 30, 2021
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from              to

Commission File Number: 001-11852

HEALTHCARE REALTY TRUST INCORPORATED

(Exact name of Registrant as specified in its charter) 

Maryland	62-1507028
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification No.)

3310 West End Avenue, Suite 700

Nashville, Tennessee 37203

(Address of principal executive offices)

(615) 269-8175

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, $0.01 par value per share	HR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

    Large accelerated filer ☒        Accelerated filer ☐        

    Non-accelerated filer ☐        Smaller reporting company ☐

            Emerging growth company ☐

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

    complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  ☒

As of July 31, 2021, the Registrant had 145,529,657 shares of Common Stock outstanding.

HEALTHCARE REALTY TRUST INCORPORATED

FORM 10-Q

June 30, 2021

    Table of Contents

PART I - FINANCIAL INFORMATION
Item 1	Financial Statements	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Income	2
	Condensed Consolidated Statements of Comprehensive Income (Loss)	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to the Condensed Consolidated Financial Statements	7
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3	Quantitative and Qualitative Disclosures about Market Risk	32
Item 4	Controls and Procedures	32
PART II - OTHER INFORMATION
Item 1	Legal Proceedings	32
Item 1A	Risk Factors	32
Item 2	Unregistered Sales of Equity and Use of Proceeds	32
Item 6	Exhibits	34
SIGNATURE		36

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Healthcare Realty Trust Incorporated

Condensed Consolidated Balance Sheets

Amounts in thousands, except per share data

ASSETS
	Unaudited JUNE 30, 2021		DECEMBER 31, 2020
Real estate properties
Land	$	375,374	$	362,695
Buildings, improvements and lease intangibles	4,249,352		4,220,297
Personal property	11,589		11,195
Investment in financing receivable, net	104,642		—
Construction in progress	1,147		—
Land held for development	27,226		27,226
Total real estate properties	4,769,330		4,621,413
Less accumulated depreciation and amortization	(1,285,251)		(1,239,224)
Total real estate properties, net	3,484,079		3,382,189
Cash and cash equivalents	18,739		15,303
Assets held for sale, net	21,065		20,646
Operating lease right-of-use assets	121,288		125,198
Financing lease right-of-use assets	19,450		19,667
Investments in unconsolidated joint ventures	117,935		73,137
Other assets, net	182,123		176,120
Total assets	$	3,964,679	$	3,812,260
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Notes and bonds payable	$	1,614,479	$	1,602,769
Accounts payable and accrued liabilities	74,927		81,174
Liabilities of assets held for sale	942		1,216
Operating lease liabilities	92,110		92,273
Financing lease liabilities	18,648		18,837
Other liabilities	67,319		67,615
Total liabilities	1,868,425		1,863,884
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value per share; 50,000 shares authorized; none issued and outstanding	—		—
Common stock, $.01 par value per share; 300,000 shares authorized; 145,530 and 139,487 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	1,455		1,395
Additional paid-in capital	3,818,592		3,635,341
Accumulated other comprehensive loss	(13,580)		(17,832)
Cumulative net income attributable to common stockholders	1,246,617		1,199,499
Cumulative dividends	(2,956,830)		(2,870,027)
Total stockholders' equity	2,096,254		1,948,376
Total liabilities and stockholders' equity	$	3,964,679	$	3,812,260

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are an integral part of these financial statements.

1

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Income

For the Three and Six Months Ended June 30, 2021 and 2020

Amounts in thousands, except per share data

Unaudited

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
	2021		2020		2021		2020
Revenues
Rental income	$	128,486	$	122,358	$	256,874	$	245,001
Interest from financing receivable, net	510		—		510		—
Other operating	2,427		1,332		4,378		3,496
	131,423		123,690		261,762		248,497
Expenses
Property operating	51,509		46,580		103,724		96,134
General and administrative	8,545		7,434		17,044		16,199
Acquisition and pursuit costs	670		431		1,414		1,181
Depreciation and amortization	49,826		47,691		99,905		95,188
	110,550		102,136		222,087		208,702
Other Income (Expense)
Gain on sales of real estate properties	20,970		68,267		39,860		68,218
Interest expense	(13,261)		(14,442)		(26,523)		(28,402)
Impairment of real estate properties	(5,078)		—		(5,912)		—
Equity loss from unconsolidated joint ventures	(146)		(116)		(220)		(127)
Interest and other income (expense), net	(262)		250		238		344
	2,223		53,959		7,443		40,033
Net Income	$	23,096	$	75,513	$	47,118	$	79,828
Basic earnings per common share	$	0.16	$	0.56	$	0.33	$	0.59
Diluted earnings per common share	$	0.16	$	0.56	$	0.33	$	0.59
Weighted average common shares outstanding - basic	141,917		133,634		140,354		133,335
Weighted average common shares outstanding - diluted	142,049		133,696		140,468		133,420

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are an integral part of these financial statements.

2

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Three and Six Months Ended June 30, 2021 and 2020

Amounts in thousands

Unaudited

	THREE MONTHS ENDED  June 30,				SIX MONTHS ENDED June 30,
	2021		2020		2021		2020
Net income	$	23,096	$	75,513	$	47,118	$	79,828
Other comprehensive income (loss)
Interest rate swaps
Reclassification adjustments for losses included in net income (interest expense)	1,114		938		2,209		1,267
Gains (losses) arising during the period on interest rate swaps	(807)		(1,455)		2,043		(11,119)
Losses on settlement of treasury rate locks arising during the period	—		—		—		(4,267)
	307		(517)		4,252		(14,119)
Comprehensive income	$	23,403	$	74,996	$	51,370	$	65,709

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are an integral part of these financial statements.

3

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Equity

For the Three Months Ended June 30, 2021 and 2020

Amounts in thousands, except per share data

Unaudited

	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Cumulative Net Income		Cumulative Dividends		Total Stockholders’ Equity
Balance at March 31, 2021	$	1,417	$	3,699,867	$	(13,887)	$	1,223,521	$	(2,912,809)	$	1,998,109
Issuance of common stock, net of issuance costs	38		116,153		—		—		—		116,191
Common stock redemptions	—		(55)		—		—		—		(55)
Share-based compensation	—		2,627		—		—		—		2,627
Net income	—		—		—		23,096		—		23,096
Reclassification adjustments for losses included in net income (interest expense)	—		—		1,114		—		—		1,114
Losses arising during the period on interest rate swaps and treasury rate locks	—		—		(807)		—		—		(807)
Dividends to common stockholders ($0.3025 per share)	—		—		—		—		(44,021)		(44,021)
Balance at June 30, 2021	$	1,455	$	3,818,592	$	(13,580)	$	1,246,617	$	(2,956,830)	$	2,096,254
	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Cumulative Net Income		Cumulative Dividends		Total Stockholders’ Equity
Balance at March 31, 2020	$	1,349	$	3,494,123	$	(19,777)	$	1,131,619	$	(2,747,886)	$	1,859,428
Issuance of common stock, net of issuance costs	11		33,031		—		—		—		33,042
Share-based compensation	—		2,405		—		—		—		2,405
Net income	—		—		—		75,513		—		75,513
Reclassification adjustments for losses included in net income (interest expense)	—		—		938		—		—		938
Losses arising during the period on interest rate swaps	—		—		(1,455)		—		—		(1,455)
Dividends to common stockholders ($0.3000 per share)	—		—		—		—		(40,510)		(40,510)
Balance at June 30, 2020	$	1,360	$	3,529,559	$	(20,294)	$	1,207,132	$	(2,788,396)	$	1,929,361

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are an integral part of these financial statements.

4

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Equity

For the Six Months Ended June 30, 2021 and 2020

Amounts in thousands, except per share data

Unaudited

	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Cumulative Net Income		Cumulative Dividends		Total Stockholders’ Equity
Balance at December 31, 2020	$	1,395	$	3,635,341	$	(17,832)	$	1,199,499	$	(2,870,027)	$	1,948,376
Issuance of common stock, net of issuance costs	59		179,216		—		—		—		179,275
Common stock redemptions	(1)		(1,610)		—		—		—		(1,611)
Share-based compensation	2		5,645		—		—		—		5,647
Net income	—		—		—		47,118		—		47,118
Reclassification adjustments for losses included in net income (interest expense)	—		—		2,209		—		—		2,209
Gains arising during the period on interest rate swaps and treasury rate locks	—		—		2,043		—		—		2,043
Dividends to common stockholders ($0.6050 per share)	—		—		—		—		(86,803)		(86,803)
Balance at June 30, 2021	$	1,455	$	3,818,592	$	(13,580)	$	1,246,617	$	(2,956,830)	$	2,096,254
	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Cumulative Net Income		Cumulative Dividends		Total Stockholders’ Equity
Balance at December 31, 2019	$	1,347	$	3,485,003	$	(6,175)	$	1,127,304	$	(2,707,470)	$	1,900,009
Issuance of common stock, net of issuance costs	12		40,351		—		—		—		40,363
Common stock redemptions	—		(798)		—		—		—		(798)
Share-based compensation	1		5,003		—		—		—		5,004
Net income	—		—		—		79,828		—		79,828
Reclassification adjustments for losses included in net income (interest expense)	—		—		1,267		—		—		1,267
Losses arising during the period on interest rate swaps	—		—		(15,386)		—		—		(15,386)
Dividends to common stockholders ($0.6000 per share)	—		—		—		—		(80,926)		(80,926)
Balance at June 30, 2020	$	1,360	$	3,529,559	$	(20,294)	$	1,207,132	$	(2,788,396)	$	1,929,361

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are an integral part of these financial statements.

5

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2021 and 2020

Amounts in thousands

Unaudited

OPERATING ACTIVITIES
	SIX MONTHS ENDED June 30,
	2021		2020
Net income	$	47,118	$	79,828
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	99,905		95,188
Other amortization	1,728		2,510
Share-based compensation	5,647		5,004
Amortization of straight-line rent receivable (lessor)	(3,024)		(1,807)
Amortization of straight-line rent on operating leases (lessee)	735		749
Gain on sales of real estate properties	(39,860)		(68,218)
Impairment of real estate properties	5,912		—
Equity loss from unconsolidated joint ventures	220		127
Distributions from unconsolidated joint ventures	—		184
Changes in operating assets and liabilities:
Other assets, including right-of-use-assets	(4,746)		(1,272)
Accounts payable and accrued liabilities	(10,418)		(5,902)
Other liabilities	2,412		(1,152)
Net cash provided by operating activities	105,629		105,239
INVESTING ACTIVITIES
Acquisitions of real estate	(100,121)		(87,417)
Development of real estate	(1,415)		(2,678)
Additional long-lived assets	(41,839)		(44,316)
Investments in unconsolidated joint ventures	(45,018)		—
Investment in financing receivable	(104,648)		—
Proceeds from sales of real estate properties	90,144		—
Net cash used in investing activities	(202,897)		(134,411)
FINANCING ACTIVITIES
Net borrowings (repayments) on unsecured credit facility	13,000		(293,000)
Borrowings on term loan	—		150,000
Borrowings of notes and bonds payable	—		298,995
Repayments of notes and bonds payable	(1,925)		(31,698)
Dividends paid	(86,803)		(80,926)
Net proceeds from issuance of common stock	179,381		40,169
Common stock redemptions	(2,014)		(892)
Settlement of treasury rate locks	—		(4,267)
Debt issuance and assumption costs	(252)		(3,018)
Payments made on finance leases	(683)		(3,168)
Net cash provided by financing activities	100,704		72,195
Increase in cash and cash equivalents	3,436		43,023
Cash and cash equivalents at beginning of period	15,303		657
Cash and cash equivalents at end of period	$	18,739	$	43,680
Supplemental Cash Flow Information
Interest paid	$	24,659	$	26,101
Invoices accrued for construction, tenant improvements and other capitalized costs	$	19,506	$	10,013
Mortgage notes payable assumed upon acquisition (adjusted to fair value)	$	—	$	19,269
Capitalized interest	$	154	$	706

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are an integral part of these financial statements.

6

Table of Contents

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Business Overview

Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2021, the Company had gross investments of approximately $4.7 billion in 227 real estate properties located in 24 states totaling approximately 16.3 million square feet. The Company provided leasing and property management services to approximately 13.4 million square feet nationwide. The Company owns 50% of an unconsolidated joint venture with Teachers Insurance and Annuity Association ("TIAA Joint Venture") and earns certain fees as the managing member. As of June 30, 2021, the TIAA Joint Venture owned nine real estate properties. See Note 2 for more details regarding the Company's unconsolidated joint ventures.

Basis of Presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2020. All material intercompany transactions and balances have been eliminated in consolidation.

This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2021 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties.

Principles of Consolidation

The Company’s Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis.

For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements.

As of June 30, 2021, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities. See Note 2 for more details regarding the Company's unconsolidated joint ventures.

7

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Use of Estimates in the Condensed Consolidated Financial Statements

Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.

The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at June 30, 2021. There can be no assurance that COVID-19 will not have a future material adverse impact on the financial results and business operations of the Company.

Investments in Leases - Financing Receivables, Net

In accordance with Accounting Standards Codification ("ASC") 842, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC 310 “Receivables”. In the second quarter of 2021, the Company acquired a building in San Diego, California in a sale leaseback transaction in which the seller-lessee had a purchase option. Therefore, control was not considered to be transferred under GAAP. Accordingly, this transaction was accounted for as a financing receivable and recorded on the Condensed Consolidated Balance Sheet in the line item Investment in financing receivable, net. The Company evaluated the impact of ASC 326, "Credit Losses" to the financing receivable, and the amount calculated was determined to be immaterial and therefore not recorded.

Income from Leases and Lease Financing Receivables

The Company recognizes the related income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease agreement.

Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. These amounts will be recognized as a reduction to Income from investments in the financing receivable, net over the life of the lease.

Revenue from Contracts with Customers (Topic 606)

The Company recognizes certain revenue under the core principle of Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance.

Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income. Below is a detail of the amounts by category:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
in thousands	2021		2020		2021		2020
Type of Revenue
Parking income	$	1,880	$	1,227	$	3,538	$	3,278
Management fee income	419		69		658		147
Miscellaneous	128		36		182		71
	$	2,427	$	1,332	$	4,378	$	3,496

The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle.

8

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

New Accounting Pronouncements

Accounting Standards Update No. 2020-04

On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Note 2. Real Estate Investments

2021 Company Acquisitions

The following table details the Company's acquisitions for the six months ended June 30, 2021:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE
San Diego, CA 3	1/7/21	$	17,150	$	17,182	$	17,182	$	—	22,461
Dallas, TX 4	2/1/21	22,515		22,299		22,641		(342)		121,709
Atlanta, GA 4	2/17/21	9,800		10,027		10,073		(46)		44,567
Washington, D.C.	3/3/21	12,750		12,709		12,658		51		26,496
Houston, TX	5/14/21	13,500		12,986		13,379		(393)		45,393
San Diego, CA 5	5/28/21	102,650		103,984		104,629		(645)		160,394
Greensboro, NC	6/28/21	9,390		9,475		10,047		(572)		25,168
Baltimore, MD	6/29/21	14,600		14,357		14,437		(80)		33,316
Total real estate acquisitions		$	202,355	$	203,019	$	205,046	$	(2,027)	479,504

1Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

2Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

3Represents a single-tenant property.

4Includes two properties.

5The Company accounted for this transaction as a financing receivable.

Subsequent to June 30, 2021, the Company acquired the following properties:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE
Denver, CO 1	7/16/21	$	70,426	259,555
Greensboro, NC 2	7/19/21	6,400		18,119
Colorado Springs, CO	7/27/21	33,400		69,526
		$	110,226	347,200

1Includes three properties.

2Represents a single-tenant property.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Unconsolidated Joint Venture Acquisitions

The TIAA Joint Venture is not consolidated for purposes of the Company's Condensed Consolidated Financial Statements. The following table details the TIAA Joint Venture acquisition for the six months ended June 30, 2021:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE	OWNERSHIP %
Denver, CO	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359	50	%
Colorado Springs, CO	4/1/21	7,200		7,288		7,347		(59)		27,510	50	%
Los Angeles, CA	4/8/21	31,335		30,179		30,642		(463)		57,573	50	%
San Antonio, TX	4/30/21	13,600		13,412		13,656		(244)		45,000	50	%
Los Angeles, CA	5/10/21	24,600		24,259		24,147		112		73,078	50	%
Total real estate acquisitions		$	91,110	$	89,194	$	90,342	$	(1,148)	262,520

1Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

2Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

Subsequent to June 30, 2021, the TIAA Joint Venture acquired the following properties:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	OWNERSHIP %
Colorado Springs, CO 1	7/27/21	$	9,133	23,956	50	%

1Includes purchase of adjoining 3.0 acre land parcel.

Unconsolidated Joint Ventures

The Company's investment in and loss recognized for the three and six months ended June 30, 2021 and 2020 related to its joint ventures accounted for under the equity method are shown in the table below:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
Dollars in thousands	2021		2020		2021		2020
Investments in unconsolidated joint ventures, beginning of period 1	$	83,943	$	8,000	$	73,137	$	8,130
New investments during the period	34,138		—		45,018		—
Equity loss recognized during the period 1	(146)		(116)		(220)		(127)
Owner distributions	—		(65)		—		(184)
Investments in unconsolidated joint ventures, end of period 1	$	117,935	$	7,819	$	117,935	$	7,819

1In addition to the TIAA Joint Venture, the Company also has a 55% and 27% ownership interest, respectively, in two limited liability companies that each own a parking garage in Atlanta, Georgia.

2021 Real Estate Asset Dispositions

The following table details the Company's dispositions for the six months ended June 30, 2021:

Dollars in millions	DATE DISPOSED	SALE PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER (INCLUDING RECEIVABLES) 1		GAIN/(IMPAIRMENT)		SQUARE FOOTAGE
Los Angeles, CA 2	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA 3	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA 3	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 3,4	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Total dispositions		$	91,550	$	(1,421)	$	90,129	$	47,049	$	4,105	$	38,975	356,686

1Includes straight-line rent receivables, leasing commissions and lease inducements.

2Includes two properties sold to a single purchaser in two transactions which occurred on March 5 and March 11, 2021.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

3Previously classified as held for sale.

4Includes three properties.

Assets Held for Sale

As of June 30, 2021 and December 31, 2020, the Company had four properties classified as assets held for sale. The four properties and an associated land parcel located in Dallas, Texas were sold on July 9, 2021. The sales price was $23.0 million and the Company's net investment in the buildings and land parcel as of June 30, 2021 was approximately $18.7 million.

The table below reflects the assets and liabilities of the properties classified as held for sale as of June 30, 2021 and December 31, 2020:

(Dollars in thousands)	June 30, 2021		December 31, 2020
Balance Sheet data:
Land	$	1,664	$	1,664
Building, improvements and lease intangibles	27,466		27,443
Personal property	39		39
	29,169		29,146
Accumulated depreciation	(10,444)		(10,455)
Real estate assets held for sale, net	18,725		18,691
Other assets, net	2,340		1,955
Assets held for sale, net	$	21,065	$	20,646
Accounts payable and accrued liabilities	$	622	$	533
Other liabilities	320		683
Liabilities of assets held for sale	$	942	$	1,216

Note 3. Leases

Lessor Accounting

The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2040. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.

The Company's leases typically have escalators that are either based on a stated percentage or an index such as consumer price index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2021 was $128.5 million and $256.9 million, respectively.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of June 30, 2021 were as follows:

In thousands	OPERATING
2021	$	197,162
2022	364,748
2023	316,864
2024	249,638
2025	199,827
2026 and thereafter	553,214
	$	1,881,453

Lessee Accounting

As of June 30, 2021, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2021, the Company had 105 properties totaling 8.8 million square feet that were held under ground leases. Some of the ground lease renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on CPI. The Company had 43 prepaid ground leases as of June 30, 2021. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.1 million and $0.2 million of the Company’s rental expense for the three months ended June 30, 2021 and 2020, respectively, and $0.3 million for the six months ended June 30, 2021 and 2020, respectively.

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2021 were as follows:

In thousands	OPERATING		FINANCING
2021	$	2,049	$	290
2022	4,932		783
2023	4,971		793
2024	5,027		815
2025	5,068		826
2026 and thereafter	303,574		87,983
Total undiscounted lease payments	325,621		91,490
Discount	(233,511)		(72,842)
Lease liabilities	$	92,110	$	18,648

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2021 and 2020:

	THREE MONTHS ENDED June 30,						SIX MONTHS ENDED June 30,
In thousands	2021			2020			2021		2020
Operating lease cost
Operating lease expense	$	1,182		$	1,175		$	2,360	$	2,349
Variable lease expense	972			804			1,868		1,604
Finance lease cost
Amortization of right-of-use assets	88			78			176		148
Interest on lease liabilities	247			240			493		477
Total lease expense	$	2,489		$	2,297		$	4,897	$	4,578
Other information
Operating cash flows outflows related to operating leases	$	2,587		$	1,416		$	4,431	$	3,972
Financing cash flows outflows related to financing leases	$	321		$	2,847		$	683	$	3,168
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	7,212		$	—	$	7,212
Weighted-average remaining lease term (excluding renewal options) - operating leases	48.1			49.1
Weighted-average remaining lease term (excluding renewal options) - finance leases	64.5			65.0
Weighted-average discount rate - operating leases	5.7		%	5.7		%
Weighted-average discount rate - finance leases	5.4		%	5.4		%

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Note 4. Notes and Bonds Payable

The table below details the Company’s notes and bonds payable. 

	MATURITY DATES	BALANCE AS OF				EFFECTIVE INTEREST RATE as of 6/30/2021
Dollars in thousands		6/30/2021		12/31/2020
$700 million Unsecured Credit Facility	5/23	$	13,000	$	—	1.00	%
$200 million Unsecured Term Loan due 2024, net of issuance costs 1	5/24	199,348		199,236		1.95	%
$150 million Unsecured Term Loan due 2026, net of issuance costs 2	6/26	149,306		149,479		2.48	%
Senior Notes due 2025, net of discount and issuance costs 3	5/25	248,906		248,776		4.08	%
Senior Notes due 2028, net of discount and issuance costs	1/28	296,365		296,123		3.84	%
Senior Notes due 2030, net of discount and issuance costs 4	3/30	296,640		296,468		2.71	%
Senior Notes due 2031, net of discount and issuance costs	3/31	295,149		294,924		2.24	%
Mortgage notes payable, net of discounts and issuance costs and including premiums	11/22-4/27	115,765		117,763		4.07	%
		$	1,614,479	$	1,602,769

1The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points).

2The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 95 basis points).

3The effective interest rate includes the impact of the $1.7 million settlement of forward-starting interest rate swaps that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

4The effective interest rate includes the impact of the $4.3 million settlement of forward interest rate hedges that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

Changes in Debt Structure

On June 1, 2021, the Company entered into a second amendment to the Amended and Restated Term Loan, dated May 31, 2019 that reduced the current interest rate on the $150 million portion of the loan due 2026 from LIBOR plus a margin rate ranging from 1.45% to 2.40% (previously 1.60%) to LIBOR plus a margin rate ranging from 0.80% to 1.60% (0.95% as of June 30, 2021). With the amendment, the Company paid up front fees of approximately $0.5 million, of which $0.2 million was paid to lenders, capitalized and amortized over the remainder of the term of the loan, and $0.3 million was paid to lenders as administrators and was expensed in the second quarter of 2021. In addition, the amendment added a sustainability metric incentive tied to increasing the Company's properties with green building certifications.

Note 5. Derivative Financial Instruments

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

As of June 30, 2021, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

DERIVATIVE INSTRUMENT	NUMBER OF INSTRUMENTS	NOTIONAL AMOUNT in millions
Interest rate swaps	8	$175.0

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of June 30, 2021.

	BALANCE AT JUNE 30, 2021
In thousands	BALANCE SHEET LOCATION	FAIR VALUE
Derivatives designated as hedging instruments
Interest rate swaps	Other liabilities	$	9,219
Total derivatives designated as hedging instruments		$	9,219

Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss)

The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2021 and 2020 related to the Company's outstanding interest rate swaps.

	(GAIN) LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended June 30,					LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended June 30,
In thousands	2021		2020			2021		2020
Interest rate swaps	$	807	$	1,455	Interest expense	$	965	$	789
Settled treasury hedges	—		—		Interest expense	107		107
Settled interest rate swaps	—		—		Interest expense	42		42
	$	807	$	1,455	Total interest expense	$	1,114	$	938

	(GAIN) LOSS RECOGNIZED IN AOCI ON DERIVATIVE six months ended June 30,					LOSS RECLASSIFIED FROM AOCI INTO INCOME six months ended June 30,
In thousands	2021		2020			2021		2020
Interest rate swaps	$	(2,043)	$	11,119	Interest expense	$	1,912	$	1,061
Settled treasury hedges	—		4,267		Interest expense	213		122
Settled interest rate swaps	—		—		Interest expense	84		84
	$	(2,043)	$	15,386	Total interest expense	$	2,209	$	1,267

The Company estimates that $4.4 million will be reclassified from AOCI to interest expense over the next 12 months.

Credit-risk-related Contingent Features

The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness.

As of June 30, 2021, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $9.6 million. As of June 30, 2021, the Company has not posted any collateral related to these agreements and was not in breach of any agreement.

15

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Note 6. Commitments and Contingencies

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

During the second quarter of 2021, the Company continued the redevelopment of 110,860 square feet of a 217,114 square foot medical office building in Dallas, Texas. As of June 30, 2021, the Company had funded approximately $0.5 million in project costs. The building continues to operate with in-place leases during construction. The first new tenant lease of the redevelopment is expected to commence in the first quarter of 2022.

During the second quarter of 2021, the Company continued the redevelopment of a 110,883 square foot medical office building in Memphis, Tennessee. As of June 30, 2021, the Company had funded approximately $28.1 million in project costs. The core and shell portion of this redevelopment was completed and the first new tenant took occupancy in the first quarter of 2021, with the construction of tenant spaces to be completed throughout the remainder of 2021.

In April 2021, the Company began the redevelopment of a medical office building in Tacoma, Washington. As of June 30, 2021, the Company had funded approximately $1.3 million in project costs. The redevelopment includes interior and exterior improvements to the existing building, plus the addition of 23,000 square feet. The Company expects the tenant lease for the expansion space to commence in the second quarter of 2022.

In July 2021, the Company began the redevelopment of a medical office building in Nashville, Tennessee. The Company expects to construct a new 106,194 square foot medical office building with the initial tenant lease expected to commence in the second quarter of 2023. The redevelopment includes the demolition of an existing 81,000 square foot medical office building. In the second quarter of 2021, the Company recognized an impairment charge of $5.0 million related to the existing building.

Note 7. Stockholders' Equity

Common Stock    

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2021 and the year ended December 31, 2020:

	SIX MONTHS ENDED	TWELVE MONTHS ENDED
	JUNE 30, 2021	DECEMBER 31, 2020
Balance, beginning of period	139,487,375	134,706,154
Issuance of common stock	5,890,468	4,637,445
Nonvested share-based awards, net of withheld shares	151,729	143,776
Balance, end of period	145,529,572	139,487,375

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

At-The-Market Equity Offering Program

The Company has in place an at-the-market equity offering program to sell up to an aggregate of $500.0 million of the Company’s common stock from time to time. The following table details the Company's at-the-market activity, including forward transactions:

	WEIGHTED AVERAGE SALE PRICE per share		SHARES PRICED	SHARES SETTLED	SHARES REMAINING TO BE SETTLED	NET PROCEEDS in millions
Balance at December 31, 2020	$	—	—	—	1,823,259	$	—
1Q 2021	$	30.09	215,532	2,038,791	—	$	62.7
2Q 2021	$	30.99	5,835,400	3,827,971	2,007,429	$	116.1
July 2021	$	31.06	1,670,186	—	3,677,615	$	—

The 3.7 million shares remaining to be settled in forward equity arrangements are expected to be settled by July 2022, and the Company expects gross proceeds of $114.8 million, depending on the timing of settlement. Expected net proceeds are calculated by reducing the initial price by adjustments provided in the forward equity arrangements. After accounting for these settlements, the Company has approximately $58.2 million remaining available to be sold under the current sales agreements at the date of this filing.

Common Stock Dividends

During the six months ended June 30, 2021, the Company declared and paid common stock dividends totaling $0.6050 per share. On August 3, 2021, the Company declared a quarterly common stock dividend in the amount of $0.3025 per share payable on August 31, 2021 to stockholders of record on August 16, 2021.

Earnings Per Common Share

The Company uses the two-class method of computing net earnings per common shares. The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method.

During the three months ended June 30, 2021, the Company entered into forward sale agreements to sell approximately 5.8 million shares of common stock through the Company's at-the-market equity offering program. The Company considered the accounting guidance governing financial instruments and derivatives to account for these agreements and concluded that it was not a liability as it did not embody obligations to repurchase our shares of common stock nor did it embody obligations to issue a variable number of shares for which the monetary value was predominately fixed, varying with something other than the fair value of the shares, or varying inversely in relation to the shares. In addition, the Company evaluated whether the agreements met the derivative and hedging guidance scope exception to be accounted for as an equity instrument and concluded that the agreements can be classified as equity.

The Company used the treasury method to determine the dilution from the forward equity agreements during the period of time prior to settlement. The number of weighted-average shares outstanding used in the computation of earnings per common share for the three and six months ended June 30, 2021 included the effect from the assumed issuance of 2.0 million shares of common stock pursuant to the settlement of the forward equity agreements at the contractual price, less the assumed repurchase of the common stock at the average market price using the proceeds, adjusted for costs to borrow. For the three and six months ended June 30, 2021, no weighted-average incremental shares of common stock were excluded from the computation of weighted-average common shares outstanding - diluted.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020.

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
Dollars in thousands, except per share data	2021		2020		2021		2020
Weighted average common shares outstanding
Weighted average common shares outstanding	143,700,491		135,367,081		142,142,577		135,062,708
Non-vested shares	(1,783,278)		(1,733,435)		(1,788,410)		(1,727,762)
Weighted average common shares outstanding - basic	141,917,213		133,633,646		140,354,167		133,334,946
Weighted average common shares outstanding - basic	141,917,213		133,633,646		140,354,167		133,334,946
Dilutive effect of forward equity shares	61,064		—		27,896		2,149
Dilutive effect of employee stock purchase plan	70,711		62,266		85,714		83,217
Weighted average common shares outstanding - diluted	142,048,988		133,695,912		140,467,777		133,420,312
Net Income	$	23,096	$	75,513	$	47,118	$	79,828
Dividends paid on nonvested share-based awards	(539)		(521)		(1,080)		(1,039)
Net income applicable to common stockholders	$	22,557	$	74,992	$	46,038	$	78,789
Basic earnings per common share - net income	$	0.16	$	0.56	$	0.33	$	0.59
Diluted earnings per common share - net income	$	0.16	$	0.56	$	0.33	$	0.59

Incentive Plans

During the six months ended June 30, 2021, the Company made the following stock awards:

•On January 1, 2021, the Company granted non-vested stock awards to certain officers with a grant date fair value of $0.6 million, which consisted of an aggregate 21,396 non-vested shares through its salary deferral program.

•On February 10, 2021, the Company granted non-vested stock awards to its four named executive officers, five senior vice presidents, and five first vice presidents with a grant date fair value totaling $3.8 million, which consisted of an aggregate 124,648 non-vested shares, with a five-year vesting period.

•Also, on February 10, 2021, the Company granted a performance-based award to its officers, excluding the four named executive officers, five senior vice presidents, and five first vice presidents totaling $0.6 million, which consisted of an aggregate 19,679 non-vested shares.

•On May 11, 2021, the Company granted non-vested stock awards to its eight directors with a grant date fair value totaling $1.2 million, which consisted of an aggregate 36,682 non-vested shares, with a one-year vesting period.

•On June 21, 2021, the Company granted a non-vested stock award to an employee, which consisted of 1,296 non-vested shares as a discretionary grant.

A summary of the activity under the Company's share-based incentive plans for the three and six months ended June 30, 2021 and 2020 is included in the table below.

	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2021	2020	2021	2020
Share-based awards, beginning of period	1,786,371	1,724,761	1,766,061	1,754,066
Granted	37,978	39,493	203,701	78,837
Vested	(46,041)	(24,996)	(191,454)	(93,645)
Share-based awards, end of period	1,778,308	1,739,258	1,778,308	1,739,258

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

During the six months ended June 30, 2021 and 2020, the Company withheld 51,972 and 23,563 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested.

In addition to the share-based incentive plans, the Company maintains the 2000 Employee Stock Purchase Plan (the "Purchase Plan"). A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2021 and 2020 is included in the table below.

	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2021	2020	2021	2020
Outstanding and exercisable, beginning of period	415,299	370,696	341,647	332,659
Granted	—	—	253,200	212,716
Exercised	(3,012)	(2,463)	(18,977)	(14,367)
Forfeited	(22,873)	(6,514)	(42,034)	(29,495)
Expired	—	—	(144,422)	(139,794)
Outstanding and exercisable, end of period	389,414	361,719	389,414	361,719

Note 8. Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value.

•Cash and cash equivalents - The carrying amount approximates fair value due to the short term maturity of these investments.

•Borrowings under the Unsecured Credit Facility and the Term Loans Due 2024 and 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.

•Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements.

•Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates.

The table below details the fair values and carrying values for notes and bonds payable at June 30, 2021 and December 31, 2020.

	June 30, 2021				December 31, 2020
Dollars in millions	CARRYING VALUE		FAIR VALUE		CARRYING VALUE		FAIR VALUE
Notes and bonds payable 1	$	1,614.5	$	1,615.6	$	1,602.8	$	1,645.4

1Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Disclosure Regarding Forward-Looking Statements

This report and other materials the Company has filed or may file with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made, or to be made, by management of the Company, contain, or will contain, disclosures that are “forward-looking statements.” Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “target,” “intend,” “plan,” “estimate,” “project,” “continue,” “should,” “could," "budget" and other comparable terms. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of risks and uncertainties, including the duration and scope of the COVID-19 pandemic; the impact of the COVID-19 pandemic on occupancy rates for the Company's properties, actions governments take in response to the COVID-19 pandemic, including the introduction of public health measures and other regulations affecting the Company’s properties and the operations of the Company and its tenants; the effects of health and safety measures adopted by the Company and its tenants related to the COVID-19 pandemic; the impact of the COVID-19 pandemic on the operations, business and financial condition of the Company and its tenants; general economic uncertainty in key markets as a result of the COVID-19 pandemic and a worsening of global economic conditions or low levels of economic growth; the status of capital markets, including availability and cost of capital; and the risks described in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, that could significantly affect the Company’s current plans and expectations and future financial condition and results.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Stockholders and investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in the Company’s filings and reports, including, without limitation, estimates and projections regarding the performance of development projects the Company is pursuing.

For a detailed discussion of the Company’s risk factors, please refer to the Company’s filings with the Securities and Exchange Commission, including this report and its Annual Report on Form 10-K for the year ended December 31, 2020.

Liquidity and Capital Resources

Sources and Uses of Cash

The Company’s primary sources of cash include rent receipts from its real estate portfolio based on contractual arrangements with its tenants, borrowings under the Company's Amended and Restated Credit Agreement, dated as of May 31, 2019, as amended (the "Unsecured Credit Facility") and the Amended and Restated Term Loan Agreement, dated as of May 31, 2019, as amended (the "Term Loan Agreement"), proceeds from the sales of real estate properties, joint ventures, and proceeds from public or private debt or equity offerings. As of June 30, 2021, the Company had $687.0 million available to be drawn on its Unsecured Credit Facility and $18.7 million in cash. In addition, the Company has entered into forward equity agreements that have expected gross proceeds of up to approximately $114.8 million, depending on the timing of settlement.

The Company expects to continue to meet its liquidity needs, including funding additional investments, paying dividends, and funding debt service, through cash flows from operations and liquidity sources described above. The Company had unencumbered real estate assets with a gross book value of approximately $4.5 billion at June 30, 2021, of which a portion could serve as collateral for secured mortgage financing. The Company believes that its liquidity and sources of capital are adequate to satisfy its cash requirements. The Company cannot, however, be certain that these sources of funds will be available at a time and upon terms acceptable to the Company in sufficient amounts to meet its liquidity needs.

Investing Activities

Cash flows used in investing activities for the six months ended June 30, 2021 were approximately $202.9 million. Below is a summary of significant investing activities.

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2021 Company Acquisitions

The following table details the Company's acquisitions for the six months ended June 30, 2021:

Dollars in thousands	ASSOCIATED HEALTH SYSTEM/TENANCY 1	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	MILES TO CAMPUS
San Diego, CA 2	Scripps Health/UCSD	1/7/21	$	17,150	22,461	0.02
Dallas, TX 3	Baylor Scott & White Health	2/1/21	22,515		121,709	0.00
Atlanta, GA 3	Wellstar Health System	2/17/21	9,800		44,567	0.19
Washington, D.C.	Sentara Healthcare	3/3/21	12,750		26,496	0.09
Houston, TX	Houston Methodist	5/14/21	13,500		45,393	0.03
San Diego, CA 4	Palomar Health	5/28/21	102,650		160,394	0.00
Greensboro, NC	Cone Health	6/28/21	9,390		25,168	0.60
Baltimore, MD	None	6/29/21	14,600		33,316	1.50
Total real estate acquisitions			$	202,355	479,504

1Includes buildings located on-campus, adjacent and off-campus that are anchored by healthcare systems or located within two miles of a hospital campus.

2Represents a single-tenant property.

3Includes two properties.

4The Company accounted for this transaction as a financing receivable. See Note 1 to the Condensed Consolidated Financial Statements accompanying this report for more information.

Subsequent to June 30, 2021, the Company acquired the following properties:

Dollars in thousands	ASSOCIATED HEALTH SYSTEM/TENANCY 1	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	MILES TO CAMPUS
Denver, CO 2	Centura Health (AdventHealth)	7/16/2021	$	70,426	259,555	0.00
Greensboro, NC 3	Cone Health	7/19/2021	6,400		18,119	0.18
Colorado Springs, CO	Centura Health (CommonSpirit)	7/27/2021	33,400		69,526	0.00
			$	110,226	347,200

1Includes buildings located on-campus, adjacent and off-campus that are anchored by healthcare systems or located within two miles of a hospital campus.

2Includes three properties.

3Represents a single-tenant property.

Unconsolidated Joint Venture Acquisitions

The following table details the TIAA Joint Venture's acquisitions for the six months ended June 30, 2021:

Dollars in thousands	ASSOCIATED HEALTH SYSTEM/TENANCY 1	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	MILES TO CAMPUS	OWNERSHIP %
Denver, CO	HCA	3/30/21	$	14,375	59,359	0.60	50	%
Colorado Springs, CO	None	4/1/21	7,200		27,510	4.70	50	%
Los Angeles, CA	MemorialCare Health	4/8/21	31,335		57,573	0.00	50	%
San Antonio, TX	CHRISTUS Health/Baptist Health	4/30/21	13,600		45,000	0.90	50	%
Los Angeles	MemorialCare Health	5/10/21	24,600		73,078	0.00	50	%
Total TIAA Joint Venture real estate acquisitions			$	91,110	262,520

1Includes buildings located on-campus, adjacent and off-campus that are anchored by healthcare systems or located within two miles of a hospital campus.

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Subsequent to June 30, 2021, the TIAA Joint Venture acquired the following property:

Dollars in thousands	ASSOCIATED HEALTH SYSTEM/TENANCY 1	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	MILES TO CAMPUS	OWNERSHIP %
Colorado Springs, CO 2	Centura Health (CommonSpirit)	7/27/21	$	9,133	23,956	1.90	50	%

1Includes buildings located on-campus, adjacent and off-campus that are anchored by healthcare systems or located within two miles of a hospital campus.

2Includes purchase of adjoining 3.0 acre land parcel.

2021 Dispositions

The Company disposed of seven properties during the six months ended June 30, 2021 for a total sales price of $91.6 million, including cash proceeds of $90.1 million. The following table details these dispositions for the six months ended June 30, 2021:

Dollars in thousands	Date Disposed	Sales Price		Square Footage	2Q 2021 NOI
Los Angeles, CA 2	3/11/21	$	26,000	73,906	NA
Atlanta, GA 3	4/12/21	8,050		19,732	12
Richmond, VA 3	5/18/21	52,000		142,856	224
Gadsden, AL 3,4	5/19/21	5,500		120,192	72
Total dispositions		$	91,550	356,686	$	308

1Includes two properties sold to a single purchaser in two transactions which occurred on March 5 and March 11, 2021.

2Previously classified as held for sale.

3Includes three properties.

For the property sold in Richmond, Virginia, the Company deferred the tax gain through a 1031 exchange and reinvested the proceeds during the quarter.

Subsequent Dispositions

On July 9, 2021, the Company disposed of four medical office buildings, totaling 190,160 square feet, and an associated land parcel located in Dallas, TX. The sales price was $23.0 million and the Company's net investment in the buildings and land parcel as of June 30, 2021 was approximately $18.7 million and was included in assets held for sale.

Capital Funding

During the six months ended June 30, 2021, the Company funded the following:

•$15.1 million toward the following development and redevelopment of properties:

◦Memphis, TN redevelopment totaled $6.4 million;

◦Dallas, TX redevelopment totaled $0.1 million;

◦Tacoma, WA redevelopment totaled $1.3 million; and    

◦tenant improvement fundings at previously completed projects totaled $7.3 million.

•$9.8 million toward first generation tenant improvements and planned capital expenditures for acquisitions;

•$9.9 million toward second generation tenant improvements; and

•$8.1 million toward capital expenditures.

Financing Activities

Cash flows provided by financing activities for the six months ended June 30, 2021 were approximately $100.7 million. Inflows from equity related to the Company's common stock issuances and net borrowings totaled $190.2 million, net of issuance costs incurred. Aggregate cash outflows totaled approximately $89.5 million primarily associated with dividends paid to common stockholders. See Notes 4 and 7 to the Condensed Consolidated Financial Statements accompanying this report for more information about capital markets and financing activities.

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Common Stock Issuances

At-The-Market Equity Offering Program

The Company has in place an at-the-market equity offering program to sell up to an aggregate of $500.0 million of the Company’s common stock from time to time. The following table details the Company's at-the-market activity, including forward transactions:

	WEIGHTED AVERAGE SALE PRICE per share		SHARES PRICED	SHARES SETTLED	SHARES REMAINING TO BE SETTLED	NET PROCEEDS in millions
Balance at December 31, 2020	$	—	—	—	1,823,259	$	—
1Q 2021	$	30.09	215,532	2,038,791	—	$	62.7
2Q 2021	$	30.99	5,835,400	3,827,971	2,007,429	$	116.1
July 2021	$	31.06	1,670,186	—	3,677,615	$	—

The 3.7 million shares remaining to be settled in forward equity arrangements are expected to be settled by July 2022, and the Company expects gross proceeds of $114.8 million, depending on the timing of settlement. Expected net proceeds are calculated by reducing the initial price by adjustments provided in the forward equity arrangements. After accounting for these settlements, the Company has approximately $58.2 million remaining available to be sold under the current sales agreements at the date of this filing. The Company expects to renew this program in the third quarter of 2021.

Debt Activity

The Company has outstanding interest rate derivatives totaling $175.0 million to hedge one-month LIBOR. The following details the amount and rate of each swap (dollars in thousands):

EFFECTIVE DATE	AMOUNT		WEIGHTED AVERAGE RATE		EXPIRATION DATE
December 18, 2017	$	25,000	2.18	%	December 16, 2022
February 1, 2018	50,000		2.46	%	December 16, 2022
May 1, 2019	50,000		2.33	%	May 1, 2026
June 3, 2019	50,000		2.13	%	May 1, 2026
	$	175,000	2.29	%

On June 1, 2021, the Company entered into a second amendment to the Term Loan Agreement that reduced the current interest rate on the $150 million portion of the loan due 2026 from LIBOR plus a margin rate ranging from 1.45% to 2.40% (previously 1.60%) to LIBOR plus a margin rate ranging from 0.80% to 1.60% (0.95% as of June 30, 2021). With the amendment, the Company paid up front fees of approximately $0.5 million, of which $0.2 million was paid to lenders, capitalized and amortized over the remainder of the the term of the loan, and $0.3 million was paid to lenders as the administrator and was expensed in the second quarter of 2021. In addition, the amendment added a sustainability metric incentive tied to increasing the Company's properties with green building certifications.

Operating Activities

Cash flows provided by operating activities increased from $105.2 million for the six months ended June 30, 2020 to $105.6 million for the six months ended June 30, 2021. Items impacting cash flows from operations include, but are not limited to, cash generated from property operations, interest payments and the timing related to the payment of invoices and other expenses.

The Company may, from time to time, sell properties and redeploy cash from property sales into new investments. To the extent revenues related to the properties being sold exceed income from these new investments, the Company's results of operations and cash flows could be adversely affected.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements that are reasonably likely to have a current or future material effect on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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New Accounting Pronouncements

See Note 1 to the Condensed Consolidated Financial Statements accompanying this report for information on new accounting standards.

Trends and Matters Impacting Operating Results

Management monitors factors and trends important to the Company and the REIT industry to gauge the potential impact on the operations of the Company. In addition to the matters discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, below are some of the factors and trends that management believes may impact future operations of the Company.

Expiring Leases

The Company expects that approximately 15% to 20% of the leases will expire each year in the ordinary course of business. There are 382 leases totaling 1.2 million square feet that will expire during the remainder of 2021. Approximately 94% of the leases expiring in 2021 are in buildings located on or adjacent to hospital campuses, are distributed throughout the portfolio, and are not concentrated with any one tenant, health system or market area. The Company typically expects to retain 75% to 90% of tenants upon expiration, and the retention ratio for the first six months of the year was within this range.

Operating Expenses

The Company historically has experienced increases in property taxes throughout its portfolio as a result of increasing assessments and tax rates levied across the country. The Company continues its efforts to appeal property tax increases and manage the impact of the increases. In addition, the Company historically has incurred variability in portfolio utilities expense based on seasonality, with the first and third quarters usually reflecting greater amounts. The effects of these operating expense increases are mitigated in leases that have provisions for operating expense reimbursement. As of June 30, 2021, leases for 90% of the Company's multi-tenant leased square footage allow for some recovery of operating expenses, with 33% having modified gross lease structures and 57% having net lease structures.

Purchase Options

Information about the Company's unexercised purchase options and the amount and basis for determination of the purchase price is detailed in the table below (dollars in thousands):

	NUMBER OF PROPERTIES		GROSS REAL ESTATE INVESTMENT AS OF JUNE 30, 2021
YEAR EXERCISABLE	MOB	INPATIENT	FAIR MARKET VALUE METHOD 1		NON FAIR MARKET VALUE METHOD 2		TOTAL
Current 3	2	1	$	54,319	$	—	$	54,319
2022	1	—	—		14,984		14,984
2023	—	—	—		—		—
2024	—	—	—		—		—
2025	4	—	48,208		19,459		67,667
2026	—	—	—		—		—
2027	—	—	—		—		—
2028	1	—	41,018		—		41,018
2029	1	—	26,494		—		26,494
2030	—	—	—		—		—
2031 and thereafter 4	5	—	206,386		—		206,386
Total	14	1	$	376,425	$	34,443	$	410,868

1The purchase option price includes a fair market value component that is determined by an appraisal process.

2Includes properties with stated purchase prices or prices based on fixed capitalization rates.

3These purchase options have been exercisable for an average of 13.9 years.

4Includes the medical office building that is recorded in the line item Investment in financing receivable, net on the Company's Condensed Consolidated Balance Sheet.

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Non-GAAP Financial Measures and Key Performance Indicators

Management considers certain non-GAAP financial measures and key performance indicators to be useful supplemental measures of the Company's operating performance. A non-GAAP financial measure is generally defined as one that purports to measure financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable measure determined in accordance with GAAP. Set forth below are descriptions of the non-GAAP financial measures management considers relevant to the Company's business and useful to investors, as well as reconciliations of these measures to the most directly comparable GAAP financial measures.

The non-GAAP financial measures and key performance indicators presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income, as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs. Management believes that in order to facilitate a clear understanding of the Company's historical consolidated operating results, these measures should be examined in conjunction with net income and cash flows from operations as presented in the Condensed Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.

Funds from Operations ("FFO"), Normalized FFO and Funds Available for Distribution ("FAD")

FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT’s operating performance equal to “net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, impairment, and after adjustments for unconsolidated partnerships and joint ventures.”

In addition to FFO, the Company presents Normalized FFO and FAD. Normalized FFO is presented by adding to FFO acquisition-related costs, acceleration of debt issuance costs, debt extinguishment costs and other Company-defined normalizing items to evaluate operating performance. FAD is presented by adding to Normalized FFO non-real estate depreciation and amortization, non-cash financing receivable amortization, loan origination cost amortization, deferred financing fees amortization, stock-based compensation expense and provision for bad debts, net; and subtracting maintenance capital expenditures, including second generation tenant improvements and leasing commissions paid and straight-line rent income, net of expense. The Company's definition of these terms may not be comparable to that of other real estate companies as they may have different methodologies for computing these amounts. FFO, Normalized FFO and FAD should not be considered as an alternative to net income as an indicator of the Company's financial performance or to cash flow from operating activities as an indicator of the Company's liquidity. FFO, Normalized FFO and FAD should be reviewed in connection with GAAP financial measures.

Management believes FFO, Normalized FFO, FFO per share, Normalized FFO per share and FAD ("Non-GAAP Measures") provide an understanding of the operating performance of the Company’s properties without giving effect to certain significant non-cash items, primarily depreciation and amortization expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. The Company believes that by excluding the effect of depreciation, amortization, impairments and gains or losses from sales of real estate, all of which are based on historical costs and which may be of limited relevance in evaluating current performance, Non-GAAP Measures can facilitate comparisons of operating performance between periods. The Company reports Non-GAAP Measures because these measures are observed by management to also be the predominant measures used by the REIT industry and by industry analysts to evaluate REITs. For these reasons, management deems it appropriate to disclose and discuss these Non-GAAP Measures. However, none of these measures represent cash generated from operating activities determined in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs. Further, these measures should not be considered as an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flow from operating activities as a measure of liquidity. The table below reconciles net income to FFO, Normalized FFO

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and FAD for the three and six months ended June 30, 2021 and 2020.

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
Amounts in thousands, except per share data	2021		2020		2021		2020
Net income	$	23,096	$	75,513	$	47,118	$	79,828
Gain on sales of real estate properties	(20,970)		(68,267)		(39,860)		(68,218)
Impairment of real estate properties	5,078		—		5,912		—
Real estate depreciation and amortization	51,199		48,577		102,510		97,109
Proportionate share of unconsolidated joint ventures	1,354		80		2,168		160
FFO attributable to common stockholders	$	59,757	$	55,903	$	117,848	$	108,879
Acquisition and pursuit costs 1	670		431		1,414		1,181
Lease intangible amortization	(6)		(16)		(78)		729
Forfeited earnest money received	—		—		(500)		—
Debt financing costs	283		—		283		—
Unconsolidated JV normalizing items 2	55		—		82		—
Normalized FFO attributable to common stockholders	$	60,759	$	56,318	$	119,049	$	110,789
Non-real estate depreciation and amortization	641		822		1,314		1,645
Non-cash interest amortization 3	897		1,035		1,791		1,781
Provision for bad debt, net	57		945		(22)		862
Straight-line rent, net	(1,194)		(390)		(2,289)		(1,057)
Stock-based compensation	2,627		2,405		5,647		5,003
Unconsolidated JV non-cash items 4	(354)		8		(711)		15
Normalized FFO adjusted for non-cash items	$	63,433	$	61,143	$	124,779	$	119,038
2nd generation TI	(4,748)		(6,005)		(9,937)		(12,045)
Leasing commissions paid	(3,804)		(2,258)		(4,997)		(5,082)
Capital additions	(6,077)		(4,777)		(8,096)		(8,247)
FAD	$	48,804	$	48,103	$	101,749	$	93,664
FFO per common share - diluted	$	0.42	$	0.42	$	0.83	$	0.81
Normalized FFO per common share - diluted	$	0.43	$	0.42	$	0.84	$	0.83
FFO weighted average common shares outstanding - diluted 5	142,914		134,464		141,323		134,221

1Acquisition and pursuit costs include third-party and travel costs related to the pursuit of acquisitions and developments.

2Includes the Company's proportionate share of acquisition and pursuit costs related to unconsolidated joint ventures.

3Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.

4Includes the Company's proportionate share of straight-line rent, net related to unconsolidated joint ventures.

5The Company utilizes the treasury stock method which includes the dilutive effect of nonvested share-based awards outstanding of 865,304 and 854,797, respectively for the three and six months ended June 30, 2021.

Cash Net Operating Income ("NOI") and Same Store Cash NOI

Cash NOI and Same Store Cash NOI are key performance indicators. Management considers these to be supplemental measures that allow investors, analysts and Company management to measure unlevered property-level operating results. The Company defines Cash NOI as rental income, interest from financing receivables and property lease guaranty income less property operating expenses. Cash NOI excludes non-cash items such as above and below market lease intangibles, straight-line rent, lease inducements, financing receivable amortization, tenant improvement amortization and leasing commission amortization. The Company also excludes cash lease termination fees. Cash NOI is historical and not necessarily indicative of future results.

Same Store Cash NOI compares Cash NOI for stabilized properties. Stabilized properties are properties that have been included in operations for the duration of the year-over-year comparison period presented and include redevelopment projects. Accordingly, stabilized properties exclude properties that were recently acquired or disposed of, properties classified as held for sale, reposition properties and newly developed properties. The Company utilizes the reposition classification for properties experiencing a shift in strategic direction. Such a shift can occur for a variety of reasons, including a substantial change in the use of the asset, a change in strategy or closure of a

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neighboring hospital, or significant property damage. Such properties may require enhanced management, leasing, capital needs or a disposition strategy that differs from the rest of the portfolio. To identify properties exhibiting these reposition characteristics, the Company applies the following Company-defined criteria:

•Properties having less than 60% occupancy that is expected to last at least two quarters;

•Properties that experience a loss of occupancy over 30% in a single quarter; or

•Properties with negative NOI that is expected to last at least two quarters.

Any recently acquired property will be included in the same store pool once the Company has owned the property for eight full quarters. Newly developed properties will be included in the same store pool eight full quarters after substantial completion. Any additional square footage created by redevelopment projects at a same store property is included in the same store pool immediately upon completion. Any property included in the reposition property group will be included in the same store analysis once occupancy has increased to 60% or greater with positive NOI and has remained at that level for eight full quarters.

During the second quarter of 2021, the Company's reposition pool decreased by two properties to a total of seven properties as a result of the properties being reclassified from reposition to same store.

The following table reflects the Company's same store cash NOI for the three months ended June 30, 2021 and 2020.

	NUMBER OF PROPERTIES	GROSS INVESTMENT at June 30, 2021		SAME STORE CASH NOI for the three months ended June 30,
Dollars in thousands				2021		2020
Same store properties	174	$	3,718,390	$	67,272	$	65,348

The following tables reconcile net income to same store NOI and the same store property metrics to the total owned real estate portfolio for the three months ended June 30, 2021 and 2020:

Reconciliation of Same Store Cash NOI

	THREE MONTHS ENDED JUNE 30,
Dollars in thousands	2021		2020
Net income	$	23,096	$	75,513
Other income (expense)	(2,223)		(53,959)
General and administrative expense	8,545		7,434
Depreciation and amortization expense	49,826		47,691
Other expenses 1	2,840		2,185
Straight-line rent revenue	(1,194)		(390)
Joint venture properties	1,035		1
Other revenue 2	(2,075)		(1,660)
Cash NOI	79,850		76,815
Cash NOI not included in same store	(12,578)		(11,467)
Same store cash NOI	67,272		65,348
Reposition NOI	788		1,512
Same store and reposition cash NOI	$	68,060	$	66,860

1Includes acquisition and pursuit costs, bad debt, above and below market ground lease intangible amortization, leasing commission amortization and ground lease straight-line rent expense.

2Includes management fee income, interest, above and below market lease intangible amortization, lease inducement amortization, lease terminations and tenant improvement overage amortization.

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Reconciliation of Same Store Properties

	AS OF JUNE 30, 2021
Dollars in thousands	PROPERTY COUNT	GROSS INVESTMENT		SQUARE FEET	OCCUPANCY
Same store properties	174	$	3,718,390	13,302,061	88.3	%
Acquisitions	44	825,165		2,062,568	91.8	%
Development completions	2	82,895		261,914	64.5	%
Reposition	7	108,968		714,437	57.5	%
Total owned real estate properties	227	$	4,735,418	16,340,980	87.0	%

Results of Operations

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

The Company’s results of operations for the three months ended June 30, 2021 compared to the same period in 2020 were impacted by acquisitions, developments, dispositions, gains on sale, and capital markets transactions.

Revenues

Rental income increased $6.1 million, or 5.0%, for the three months ended June 30, 2021 compared to the prior year period. This increase is comprised of the following:

•Acquisitions in 2020 and 2021 contributed $8.5 million.

•Leasing activity, including contractual rent increases, contributed $3.9 million.

•Dispositions in 2020 and 2021 resulted in a decrease of $6.3 million.

Interest from a financing receivable, net totaled $0.5 million for the three months ended June 30, 2021. The Company acquired a property under a sale leaseback transaction. The sale leaseback did not qualify for sale accounting as a result of a purchase option included in the tenant lease. Therefore, the Company accounted for the transaction as a financing receivable. See Note 1 to the Condensed Consolidated Financial Statements accompanying this report for more information.

Other operating income increased $1.1 million, or 82.2%, from the prior year period primarily due to variable parking and asset management fees.

Expenses

Property operating expenses increased $4.9 million, or 10.6%, for the three months ended June 30, 2021 compared to the prior year period primarily as a result of the following activity:

•Acquisitions in 2020 and 2021 resulted in an increase of $3.1 million.

•Increases in portfolio operating expenses as follows:

◦Maintenance and repair expense of $0.8 million;

◦Utilities expense of $0.6 million;

◦Portfolio property tax expense increase of $0.3 million;

◦Compensation expense of $0.3 million;

◦Administrative and other legal costs expense of $0.3 million; and

◦Insurance expense of $0.2 million.

•Dispositions in 2020 and 2021 resulted in a decrease of $0.7 million.

General and administrative expenses increased approximately $1.1 million, or 14.9%, for the three months ended June 30, 2021 compared to the prior year period primarily as a result of the following activity:

•Travel expense increases of $0.4 million.

•Increase in incentive-based awards of approximately $0.4 million.

•Compensation expense increases of $0.5 million including $0.2 million of non-cash expense.

•Net decreases, including professional fees and other administrative costs, of $0.2 million.

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Depreciation and amortization expense increased $2.1 million, or 4.5%, for the three months ended June 30, 2021 compared to the prior year period primarily as a result of the following activity:

•Acquisitions in 2020 and 2021 resulted in an increase of $4.8 million.

•Various building and tenant improvement expenditures resulted in an increase of $2.3 million.

•Dispositions in 2020 and 2021 resulted in a decrease of $2.1 million, including $0.3 million related to properties that were reclassified to held for sale.

•Assets that became fully depreciated resulted in a decrease of $2.9 million.

Other Income (Expense)

Gains on sale of real estate properties

In the second quarter of 2021, the Company recognized gains of approximately $21.0 million on the sale of two properties.

In the second quarter of 2020, the Company recognized gains of approximately $68.3 million related to the agreements to sell two properties which resulted in lease modifications requiring the Company to recognize the gain prior to sale. The sale occurred in the third quarter of 2020.

Interest expense

Interest expense decreased $1.2 million or 8.2%, for the three months ended June 30, 2021 compared to the prior year period. The components of interest expense are as follows:

	THREE MONTHS ENDED JUNE 30,				CHANGE
Dollars in thousands	2021		2020		$		%
Contractual interest	$	12,148	$	13,453	$	(1,305)	(9.7)	%
Net discount/premium accretion	49		204		(155)		(76.0)	%
Deferred financing costs amortization	704		682		22		3.2	%
Interest rate swap amortization	42		42		—		—	%
Treasury hedge amortization	107		107		—		—	%
Interest cost capitalization	(36)		(286)		250		(87.4)	%
Right-of-use assets financing amortization	247		240		7		2.9	%
Total interest expense	$	13,261	$	14,442	$	(1,181)	(8.2)	%

Contractual interest expense decreased $1.3 million, or 9.7%, primarily as a result of the following activity:

•The unsecured senior notes due 2031 accounted for an increase of approximately $1.5 million.

•The redemption of the unsecured senior notes due 2023 accounted for a decrease of $2.3 million.

•The Company's unsecured term loan due 2024 and unsecured term loan due 2026, net of swaps, accounted for an increase of approximately $0.3 million.

•The Unsecured Credit Facility accounted for a decrease of approximately $0.4 million.

•Mortgage note repayments, net of assumptions, accounted for a decrease of approximately $0.4 million.

Impairment of Real Estate Properties

Impairment of real estate properties totaling approximately $5.1 million was associated with the redevelopment project in Nashville, Tennessee. See Note 6 to the Condensed Consolidated Financial Statements accompanying this report for further discussion of this project.

Equity loss from unconsolidated joint ventures

The Company recognized its proportionate share of losses from the TIAA Joint Venture and its parking garage joint ventures during the second quarter of 2021. These losses are primarily attributable to non-cash depreciation expense. See Note 2 to the Condensed Consolidated Financial Statements accompanying this report for more details regarding the Company's unconsolidated joint ventures.

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Interest and other income (expense), net

In the second quarter of 2021, the Company expensed approximately $0.3 million of debt issuance costs as a result of the amendment to the Term Loan Agreement.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020

The Company’s results of operations for the six months ended June 30, 2021 compared to the same period in 2020 were impacted by acquisitions, developments, dispositions, gains on sale, and capital markets transactions.

Revenues

Rental income increased $11.9 million, or 4.8%, for the six months ended June 30, 2021 compared to the prior year period. This increase is comprised of the following:

•Acquisitions in 2020 and 2021 contributed $17.8 million.

•A development completed in 2020 contributed $1.0 million.

•Leasing activity, including contractual rent increases, contributed $4.6 million.

•Dispositions in 2020 and 2021 resulted in a decrease of $11.5 million.

Interest from financing receivable, net of $0.5 million is due to the 2021 acquisition of a property classified as an investment in financing receivable. Note 1 to the Condensed Consolidated Financial Statements accompanying this report.

Other operating income increased $0.9 million, or 25.2%, from the prior year period primarily due to variable parking and asset management fees.

Expenses

Property operating expenses increased $7.6 million, or 7.9%, for the six months ended June 30, 2021 compared to the prior year period primarily as a result of the following activity:

•Acquisitions in 2020 and 2021 resulted in an increase of $6.4 million.

•A development completed in 2020 resulted in an increase of $0.2 million.

•Increases in portfolio operating expenses as follows:

•Maintenance and repair expense of $0.9 million;

•Portfolio property tax expense of $0.5 million;

•Utilities expense of $0.5 million; and

•Compensation expense of $0.4 million.

•Intangible amortization write-off in the first quarter of 2020 due the acquisition of previously ground leased land resulted in a decrease of $0.7 million.

•Dispositions in 2020 and 2021 resulted in a decrease of $0.6 million.

General and administrative expenses increased approximately $0.8 million, or 5.2%, for the six months ended June 30, 2021 compared to the prior year period primarily as a result of the following activity:

•Increase in incentive-based awards of approximately $0.2 million.

•Compensation expense increases of $1.0 million including $0.5 million of non-cash expense.

•Travel expense decreases of $0.3 million.

•Net decreases, including professional fees and other administrative costs, of $0.1 million.

Depreciation and amortization expense increased $4.7 million, or 5.0%, for the six months ended June 30, 2021 compared to the prior year period primarily as a result of the following activity:

•Acquisitions in 2020 and 2021 and a development in 2020 resulted in an increase of $9.8 million.

•Various building and tenant improvement expenditures resulted in an increase of $4.6 million.

•Dispositions in 2020 and 2021 resulted in a decrease of $4.0 million, including $0.6 million related to properties that were reclassified to held for sale.

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•Assets that became fully depreciated resulted in a decrease of $5.7 million.

Other Income (Expense)

Gains on sale of real estate properties

Gains on sale of real estate properties in 2021 totaling approximately $39.9 million are associated with four real estate properties.

Gains on sale of real estate properties in 2020 totaling $68.2 million relates to the agreements to sell two properties which resulted in lease modifications requiring the Company to recognize the gain prior to sale. The sale occurred in the third quarter of 2020.

Interest expense

Interest expense decreased $1.9 million or 6.6%, for the six months ended June 30, 2021 compared to the prior year period. The components of interest expense are as follows:

	SIX MONTHS ENDED JUNE 30,				CHANGE
Dollars in thousands	2021		2020		$		%
Contractual interest	$	24,389	$	26,850	$	(2,461)	(9.2)	%
Net discount/premium accretion	96		256		(160)		(62.5)	%
Deferred financing costs amortization	1,402		1,319		83		6.3	%
Interest rate swap amortization	84		84		—		—	%
Treasury hedge amortization	213		122		91		74.6	%
Interest cost capitalization	(154)		(706)		552		(78.2)	%
Right-of-use assets financing amortization	493		477		16		3.4	%
Total interest expense	$	26,523	$	28,402	$	(1,879)	(6.6)	%

Contractual interest expense decreased $2.5 million, or 9.2%, primarily as a result of the following activity:

•The unsecured senior notes due 2031 and the Senior Notes due 2030 accounted for an increase of approximately $4.6 million.

•The redemption of the unsecured senior notes due 2023 accounted for a decrease of $4.7 million.

•The Company's unsecured term loan due 2024 and the unsecured term loan due 2026, net of swaps, accounted for an increase of approximately $0.7 million.

•The Unsecured Credit Facility accounted for a decrease of approximately $2.2 million.

•Mortgage note repayments, net of assumptions, accounted for a decrease of approximately $0.9 million.

Impairment of Real Estate Properties

Impairment of real estate properties totaling approximately $5.9 million was associated with the disposal of one property totaling $0.8 million and $5.1 million associated with a redevelopment project in Nashville, Tennessee. See Note 6 to the Condensed Consolidated Financial Statements accompany this report for further discussion of this project.

Equity loss from unconsolidated joint ventures

The Company recognized its proportionate share of losses from the TIAA Joint Venture and its parking garage joint ventures. These losses are primarily attributable to non-cash depreciation expense. See Note 2 to the Condensed Consolidated Financial Statements accompanying this report for more details regarding the Company's unconsolidated joint ventures.

Interest and other income (expense), net

In 2021, the Company recorded approximately $0.5 million from a forfeited earnest money deposit and expensed approximately $0.3 million of debt issuance costs as a result of the amendment to the Term Loan Agreement.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to market risk in the form of changing interest rates on its debt and mortgage notes. Management uses regular monitoring of market conditions and analysis techniques to manage this risk. During the six months ended June 30, 2021, there were no material changes in the quantitative and qualitative disclosures about market risks presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports it files or submits under the Exchange Act.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. 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.

Item 1A. Risk Factors

In addition to the other information set forth in this report, an investor should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which could materially affect the Company’s business, financial condition or future results. The risks, as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, are not the only risks facing the Company. Additional risks and uncertainties not currently known to management or that management currently deems immaterial also may materially, adversely affect the Company’s business, financial condition, operating results or cash flows.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended June 30, 2021, the Company canceled shares of Company common stock to satisfy employee tax withholding obligations payable upon the vesting of non-vested shares, as follows:

PERIOD	TOTAL NUMBER OF SHARES PURCHASED	AVERAGE PRICE PAID per share		TOTAL NUMBER OF SHARES purchased as part of publicly announced plans or programs	MAXIMUM NUMBER OF SHARES that may yet be purchased under the plans or programs
April 1 - April 30	—	$	—	—	—
May 1 - May 31	—	—		—	—
June 1 - June 30	1,732	31.69		—	—
Total	1,732

On May 4, 2021, the Company’s Board of Directors authorized the repurchase of up to $50.0 million of outstanding shares of the Company’s common stock either in the open market or through privately negotiated transactions, subject to market conditions, regulatory constraints, and other customary conditions. The Company is not obligated under this authorization to repurchase any specific number of shares. This authorization supersedes all previous stock repurchase authorizations. As of the date of this report, the Company has not repurchased any shares of its common stock under this authorization.

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Item 6. Exhibits

EXHIBIT	DESCRIPTION
Exhibit 3.1	Second Articles of Amendment and Restatement of the Company, as amended 1
Exhibit 3.2	Amended and Restated Bylaws of the Company, as amended 1
Exhibit 4.1	Specimen Stock Certificate 2
Exhibit 4.2	Indenture, dated as of May 15, 2001, by and between the Company and Truist Bank, formally known as Branch Banking and Trust Company, as trustee (as successor to the trustee named therein) 3
Exhibit 4.3	Fifth Supplemental Indenture, dated March 26, 2013, by and between the Company and Truist Bank, formally known as Branch Banking and Trust Company, as Trustee (as successor to the trustee named therein)4
Exhibit 4.4	Form of 3.75% Senior Note due 2023 (set forth in Exhibit B to the Fifth Supplemental Indenture filed as Exhibit 4.3 thereto) 4
Exhibit 4.5	Sixth Supplemental Indenture, dated April 24, 2015, by and between the Company and Truist Bank, formally known as Branch Banking and Trust Company, as Trustee (as successor to the trustee named therein) 5
Exhibit 4.6	Form of 3.875% Senior Note due 2025 (set forth in Exhibit B to the Sixth Supplemental Indenture filed as Exhibit 4.5 thereto) 5
Exhibit 4.7	Seventh Supplemental Indenture, dated December 11, 2017, by and between the Company and Truist Bank, formally known as Branch Banking and Trust Company, as Trustee. 6
Exhibit 4.8	Form of 3.625% Senior Note due 2028 (set forth in Exhibit B to the Seventh Supplemental Indenture filed as Exhibit 4.7 hereto). 6
Exhibit 4.9	Eighth Supplemental Indenture, dated March 18, 2020, by and between the Company and Truist Bank, formally known as Branch Banking and Trust Company, as Trustee.7
Exhibit 4.10	Form of 2.400% Senior Note due 2030 (set forth in Exhibit B to the Eighth Supplemental Indenture filed as Exhibit 4.9 hereto). 7
Exhibit 4.11	Ninth Supplemental Indenture, dated October 2, 2020, by and between the Company and Truist Bank, formally known as Branch Banking and Trust Company, as Trustee. 8
Exhibit 4.12	Form of 2.050% Senior Note due 2031 (set forth in Exhibit B to the Ninth Supplemental Indenture filed as Exhibit 4.11 hereto). 8
Exhibit 10.1	Amended and Restated Employment Agreement between the Company and Julie F. Wilson, dated as of July 1, 2021 (filed herewith)
Exhibit 10.2	Second Amendment to Amended and Restated Term Loan, dated June 1, 2021, by and among the Company, Wells Fargo Bank, National Association, and the other lenders party thereto.9
Exhibit 31.1	Certification of the Chief Executive Officer of Healthcare Realty Trust Incorporated pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
Exhibit 31.2	Certification of the Chief Financial Officer of Healthcare Realty Trust Incorporated pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
Exhibit 32	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
Exhibit 101.INS	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document (furnished electronically herewith)
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (furnished electronically herewith)
Exhibit 101.LAB	XBRL Taxonomy Extension Labels Linkbase Document (furnished electronically herewith)
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (furnished electronically herewith)
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (furnished electronically herewith)

1Filed as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed February 13, 2019 and hereby incorporated by reference.

2Filed as an exhibit to the Company’s Registration Statement on Form S-11 (Registration No. 33-60506) filed April 2, 1993 and hereby incorporated by reference.

3Filed as an exhibit to the Company's Current Report on Form 8-K filed May 17, 2001 and hereby incorporated by reference.

4Filed as an exhibit to the Company's Current Report on Form 8-K filed March 26, 2013 and hereby incorporated by reference.

5Filed as an exhibit to the Company's Current Report on Form 8-K filed April 24, 2015 and hereby incorporated by reference.

6Filed as an exhibit to the Company’s Current Report on Form 8-K filed December 11, 2017 and hereby incorporated by reference.

7Filed as an exhibit to the Company's Current Report on Form 8-K filed March 18, 2020 and hereby incorporated by reference.

8Filed as an exhibit to the Company's Current Report on Form 8-K filed October 2, 2020 and hereby incorporated by reference.

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9Filed as an exhibit to the Company's Current Report on Form 8-K filed June 3, 2021 and hereby incorporated by reference.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HEALTHCARE REALTY TRUST INCORPORATED
	By:	/s/ J. CHRISTOPHER DOUGLAS
		J. Christopher Douglas
		Executive Vice President and Chief Financial Officer
August 4, 2021

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EX-10.1

Healthcare Realty Trust Incorporated

Amended and Restated Employment Agreement

This Employment Agreement (the “Agreement”) is effective as of July 1, 2021 (“Effective Date”) by and between Healthcare Realty Trust Incorporated, a Maryland corporation (“Corporation”), and Julie F. Wilson (“Officer”).

Recitals

Whereas, the Corporation has heretofore employed the Officer under the terms of an employment agreement dated January 1, 2005, as amended as of December 31, 2008 (the “Prior Agreement”); and

Whereas, the parties desire to modify the Prior Agreement with this amendment and restatement to acknowledge Officer’s promotion to the office of Executive Vice President – Operations and to conform terms of employment and the officer’s compensation with the Corporation’s current compensation practices and commensurate with Officer’s position;

Now, Therefore, in consideration of the foregoing premises, and other good and valuable consideration, the receipt and sufficiency of which are hereby affirmed, the parties hereto agree to the following to supersede the Prior Agreement as a complete amendment and restatement thereof as of the Effective Date:

1.    Duties. During the term of this Agreement, Officer agrees to be employed by and to serve Corporation as its Executive Vice President – Operations and Corporation agrees to employ and retain Officer in such capacity. Officer shall have such duties and responsibilities as may be prescribed by the Corporation’s Chief Executive Officer and/or the Board of Directors. Officer shall devote such of her business time, energy, and skill to the affairs of Corporation as shall be necessary to perform her duties under this Agreement. Officer shall report to Corporation’s Chief Executive Officer and at all times during the term of this Agreement shall have powers and duties at least commensurate with her position as Executive Vice President - Operations. Officer’s principal place of business with respect to her services to Corporation shall be within 35 miles of Nashville, Tennessee.

2.    Term of Employment.

2.1    Definitions. For purposes of this Agreement the following terms shall have the following meanings:

(a)    “Bonus Compensation” shall mean any cash bonus and any non-equity incentive plan compensation, whether pursuant to the Incentive Plans or awarded through the discretion of the Corporation.

(b)    “Change in Control” shall mean (i) the acquisition by any person and all other persons who constitute a group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 (“Exchange Act”)) of direct or indirect beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of 20 percent or more of Corporation’s outstanding securities, unless a majority of the “Continuing Directors” approves the acquisition not later than ten business days after Corporation makes that determination, or (ii) the first day on which a majority of the members of Corporation’s Board of Directors are not “Continuing Directors.”

(c)    “Constructive Termination” shall mean (i) any material breach of this Agreement by Corporation, (ii) any substantial reduction in the authority or responsibility of Officer or other substantial reduction in the terms and conditions of Officer’s employment under circumstances which would not justify a Termination For Cause and which are not the result of a breach by Officer of this Agreement, (iii) any act(s) by Corporation which are designed to or have the effect of rendering Officer’s working conditions so intolerable or demeaning on a recurring basis that a reasonable person would resign such employment, or (iv) relocation of Officer to a location that is more than 35 miles from the location of Corporation’s headquarters on the date this Agreement is executed.

(d)    “Continuing Directors” shall mean, as of any date of determination, any member of the Board of Directors of Corporation who (i) was a member of that Board of Directors on the Effective Date, (ii) has been a member of that Board of Directors for the two years immediately preceding such date of determination, or (iii) was nominated for election or elected to the Board of Directors with the affirmative vote of the greater of (x) a majority of Continuing Directors who were members of the Board at the time of such nomination or election or (y) at least four Continuing Directors.

(e)    “Incentive Plans” shall mean the Corporation’s 2015 Stock Incentive Plan, or other equity-based plan or arrangement adopted by the Compensation Committee from time to time.

(f)    “Termination For Cause” shall mean termination by Corporation of Officer’s employment by reason of Officer’s (i) dishonesty towards Corporation, (ii) fraud upon Corporation, or (iii) deliberate injury or attempted injury to Corporation, in each such case causing material injury to Corporation, or by reason of Officer’s breach of this Agreement causing material injury to Corporation. Corporation shall have the burden of establishing that any such termination of Officer’s employment by Corporation is a Termination For Cause.

(g)    “Termination Other Than For Cause” shall mean any termination by Corporation of Officer’s employment by Corporation, other than (i) a Termination For Cause or (ii) termination by reason of Officer’s death or disability as described in Sections 2.5 and 2.6. Termination Other Than For Cause shall include a Constructive Termination of Officer’s employment, effective upon notice from Officer to Corporation of such Constructive Termination.

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(h)    “Termination Upon a Change in Control” shall mean a termination of Officer’s employment with Corporation within 12 months following a “Change in Control” that constitutes a Termination Other Than For Cause described in Section 2.1(b).

(i)    “Voluntary Termination” shall mean termination by Officer of Officer’s employment by Corporation other than (i) a Constructive Termination as described in subsection 2.1(g), (ii) “Termination Upon a Change in Control” as described in Section 2.1(d), and (iii) termination by reason of Officer’s death or disability as described in Sections 2.5 and 2.6.

2.2    Basic Term. The term of this Agreement shall commence on July 1, 2021 and continue through December 31, 2021, unless terminated pursuant to this Section 2. On December 31, 2021, and on December 31 of each succeeding year, the first sentence of this Section 2.2 shall be automatically amended to provide that the term of the Agreement shall be renewed for a one-year period commencing on the next January 1 and continuing through December 31 of the same year, such that this Agreement shall be deemed to have been renewed each year for a one-year period prior to the expiration of the current term.

2.3    Termination For Cause. Termination For Cause may be effected by Corporation at any time during the term of this Agreement and shall be effected by written notification to Officer. Upon Termination For Cause, Officer immediately shall be paid all accrued Base Salary (as that term is defined below) adjusted for any elective deferral, Bonus Compensation, if any, to the extent awarded but not yet paid, any benefits under any plans of the Corporation (including any defined contribution or health and welfare benefit plans) in which Officer is a participant to the full extent of Officer’s rights under such plans, accrued vacation pay and any appropriate business expenses incurred by Officer in connection with her duties hereunder, all to the date of termination, but Officer shall not be paid any other compensation or reimbursement of any kind, including without limitation, severance compensation.

2.4    Termination Other Than For Cause or Constructive Termination. Notwithstanding anything else in this Agreement, Corporation may effect a Termination Other Than For Cause at any time upon giving written notice to Officer of such termination. Upon any Termination Other Than For Cause, or upon a Constructive Termination, Officer shall immediately be paid all accrued Base Salary adjusted for any elective deferral, Bonus Compensation, if any, to the extent awarded but not yet paid, any benefits under any plans of the Corporation (including any benefits under any defined contribution or health and welfare benefit plans) in which Officer is a participant to the full extent of Officer’s rights under such plans, full vesting of all awards previously granted to Officer under the Incentive Plans, accrued vacation pay and any appropriate business expenses incurred by Officer in connection with her duties hereunder, all to the date of termination, and all severance compensation provided in Section 4.2, but no other compensation or reimbursement of any kind.

2.5    Termination by Reason of Disability. If, during the term of this Agreement, Officer, in the reasonable judgment of the Board of Directors of Corporation, has failed to perform her duties under this Agreement on account of illness or physical or mental incapacity, and such illness or incapacity continues for a period of more than 12 consecutive

    3

months, Corporation shall have the right to terminate Officer’s employment hereunder by written notification to Officer and payment to Officer of all accrued Base Salary adjusted for any elective deferral, Bonus Compensation, if any, to the extent awarded but not yet paid, full vesting of any awards granted to Officer under the Incentive Plans, any benefits under any plans of the Corporation (including any defined contribution or health and welfare benefit plans) in which Officer is a participant to the full extent of Officer’s rights under such plans, accrued vacation pay and any appropriate business expenses incurred by Officer in connection with her duties hereunder, all to the date of termination, with the exception of medical and dental benefits which shall continue at Corporation’s expense through the then current one-year term of the Agreement, but Officer shall not be paid any other compensation or reimbursement of any kind, including without limitation, severance compensation.

2.6    Death. In the event of Officer’s death during the term of this Agreement, Officer’s employment shall be deemed to have terminated as of the last day of the month during which her death occurs and Corporation shall pay to her estate or such beneficiaries as Officer may from time to time designate (a) all accrued Base Salary adjusted for any elective deferral, (b) Bonus Compensation, if any, to the extent awarded but not yet paid, (c) any pro-rated portion of the Bonus Compensation that Officer would have earned for a given period in which the termination occurs (if she had remained employed for the entire period), based on the number of days in such period that had elapsed as of the termination date, payable at the time that the Corporation pays bonuses to its executive officers for such period; provided, however, that such Bonus Compensation shall be payable only if Officer remained employed for at least half of the period for which the Bonus Compensation would have been payable, (d) any pro-rated portion of equity compensation under the Incentive Plans that Officer would have earned for a given period in which the termination occurs (if she had remained employed for the entire period), based on the number of days in such period that had elapsed as of the termination date, payable in either stock or cash at the Corporation’s election and at the time that the Corporation pays such equity compensation awards to its executive officers for such period; provided, however, that such equity compensation award shall be payable only if Officer remained employed for at least half of the period for which the award would have been payable, (e) full vesting of any awards granted to Officer under the Incentive Plans, (f) any benefits under any plans of the Corporation (including any defined contribution or health and welfare benefit plans) in which Officer is a participant to the full extent of Officer’s rights under such plans, (g) accrued vacation pay, and (h) any appropriate business expenses incurred by Officer in connection with her duties hereunder, all to the date of termination, but Officer’s estate shall not be paid any other compensation or reimbursement of any kind, including without limitation, severance compensation.

2.7    Voluntary Termination. In the event of a Voluntary Termination, Corporation shall immediately pay all accrued Base Salary, Bonus Compensation, if any, to the extent awarded but not yet paid, any benefits under any plans of the Corporation (including any defined contribution or health and welfare benefit plans) in which Officer is a participant to the full extent of Officer’s rights under such plans, accrued vacation pay and any appropriate business expenses incurred by Officer in connection with her duties hereunder, all to the date of

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termination, but no other compensation or reimbursement of any kind, including without limitation, severance compensation.

2.8    Termination Upon a Change in Control. In the event of a Termination Upon a Change in Control, Officer shall immediately be paid all accrued Base Salary adjusted for any elective deferral, Bonus Compensation, if any, to the extent awarded through the date of termination but not yet paid, any benefits under any plans of the Corporation (including any defined contribution or health and welfare benefit plans) in which Officer is a participant to the full extent of Officer’s rights under such plans, full vesting of shares awarded to Officer under the Incentive Plans, accrued vacation pay and any appropriate business expenses incurred by Officer in connection with her duties hereunder, all to the date of termination, and all severance compensation provided in Section 4.1 in the event of a Termination Upon a Change in Control, but no other compensation or reimbursement of any kind.

2.9    Notice of Termination. Corporation may effect a termination of this Agreement pursuant to the provisions of this Section 2 upon giving 30 days written notice to Officer of such termination. Officer may effect a termination of this Agreement pursuant to the provisions of this Section 2 upon giving 30 days written notice to Corporation of such termination.

3.    Salary, Benefits and Bonus Compensation.

3.1    Base Salary. As payment for the services to be rendered by Officer as provided in Section 1 and subject to the terms and conditions of Section 2, Corporation agrees to pay to Officer a “Base Salary” at the rate of $450,000 per annum payable in equal semi-monthly installments, or in such other periodic installments as mutually agreed to by Corporation and Officer.

3.2    Bonuses. Officer shall be eligible to receive Bonus Compensation for each year (or portion thereof) during the term of this Agreement and any extensions thereof, in accordance with the Incentive Plans or other policy, plan or arrangement adopted by the Compensation Committee from time to time.

3.3    Additional Benefits. During the term of this Agreement, Officer shall be entitled to the following additional benefits:

(a)    Officer Benefits. Officer shall be eligible to participate in such of Corporation’s benefits and deferred compensation plans as are now generally available or later made generally available to executive officers of Corporation, including, without limitation, the Incentive Plans, dental and medical plans, personal catastrophe and disability insurance, perquisites, and retirement plans. For purposes of establishing the length of service under any benefit plans or programs of Corporation, Officer’s employment with Corporation will be deemed to have commenced on September 19, 2001.

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(b)    Vacation. Officer shall be entitled to four weeks of vacation during each year during the term of this Agreement and any extensions thereof, prorated for partial years.

(c)    Reimbursement for Expenses. During the term of this Agreement, Corporation shall reimburse Officer for reasonable and properly documented out-of-pocket business and/or entertainment expenses incurred by Officer in connection with her duties under this Agreement.

4.    Severance Compensation.

4.1    Severance Compensation in the Event of a Termination Upon a Change in Control. In the event Officer’s employment is terminated in a Termination Upon a Change in Control, Officer shall be paid as severance compensation an amount equal to (a) three times her annual Base Salary (at the rate payable at the time of such termination) plus (b) the greater of two times: (i) the average annual Bonus Compensation, if any, earned by Officer in the two years immediately preceding the date of termination and (ii) $720,000.00, plus (c) any pro-rated portion of the Bonus Compensation that Officer would have earned for a given period in which the termination occurs (if she had remained employed for the entire period), based on the number of days in such period that had elapsed as of the termination date, payable at the time that the Corporation pays bonuses to its executive officers for such period; provided, however, that such Bonus Compensation shall be payable only if Officer remained employed for at least half of the period for which the Bonus Compensation would have been payable, plus (d) any pro-rated portion of equity compensation under the Incentive Plans that Officer would have earned for a given period in which the termination occurs (if she had remained employed for the entire period), based on the number of days in such period that had elapsed as of the termination date, payable in either stock or cash at the Corporation’s election and at the time that the Corporation pays such equity compensation awards to its executive officers for such period; provided, however, that such equity compensation award shall be payable only if Officer remained employed for at least half of the period for which the award would have been payable. Such severance compensation shall be paid in a lump sum promptly after the date of such termination, subject to the limitations of Section 4.4. The parties intend that, to the greatest extent possible, such severance compensation be treated as made pursuant to a “separation pay plan,” and not subject to the restrictions imposed by Section 4.4, as provided under Treas. Reg. § 1.409A-1(b)(9), and agree to pay such severance in separate installments if the amount of severance hereunder exceeds the limits thereof. To the extent permissible under the group health benefit plans of the Corporation (or its successor), Officer may continue to participate in such plans under the same terms as active employees, pursuant to continuation coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), until the expiration of such COBRA continuation coverage. Officer is under no obligation to mitigate the amount owed Officer pursuant to this Section 4.1 by seeking other employment or otherwise.

4.2    Severance Compensation in the Event of a Termination Other Than For Cause. In the event Officer’s employment is terminated in a Termination Other Than For Cause, Officer shall be paid as severance compensation her Base Salary (at the rate payable at

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the time of such termination), for a period of 18 months from the date of such termination, on the dates specified in Section 3.1. Officer is under no obligation to mitigate the amount owed Officer pursuant to this Section 4.2 by seeking other employment or otherwise.In addition to the severance payment payable under this Section 4.2, Officer shall be paid an amount equal to the greater of two times: (i) the average annual Bonus Compensation, if any, earned by Officer in the two years immediately preceding the date of termination and (ii) $360,000.00. In addition, Officer shall be paid (i) any pro-rated portion of the Bonus Compensation that Officer would have earned for a given period in which the termination occurs (if she had remained employed for the entire period), based on the number of days in such period that had elapsed as of the termination date, payable at the time that the Corporation pays bonuses to its executive officers for such period; provided, however, that such Bonus Compensation shall be payable only if Officer remained employed for at least half of the period for which the Bonus Compensation would have been payable, plus (ii) any pro-rated portion of equity compensation under the Incentive Plans that Officer would have earned for a given period in which the termination occurs (if she had remained employed for the entire period), based on the number of days in such period that had elapsed as of the termination date, payable in either stock or cash at the Corporation’s election and at the time that the Corporation pays such equity compensation awards to its executive officers for such period; provided, however, that such equity compensation award shall be payable only if Officer remained employed for at least half of the period for which the award would have been payable. The parties intend that, to the greatest extent possible, such severance compensation be treated as made pursuant to a “separation pay plan,” and not subject to the restrictions imposed by Section 4.4, as provided under Treas. Reg. § 1.409A-1(b)(9), and agree to pay such severance in separate installments if the amount of severance hereunder exceeds the limits thereof. To the extent permissible under the group health benefit plans of the Corporation (or its successor), Officer may continue to participate in such plans under the same terms as active employees, pursuant to continuation coverage under COBRA, until the expiration of such COBRA continuation coverage.

4.3    No Severance Compensation Upon Other Termination. In the event of a Voluntary Termination, Termination For Cause, termination by reason of Officer’s disability pursuant to Section 2.5, or termination by reason of Officer’s death pursuant to Section 2.6, Officer or her estate shall not be paid any severance compensation and shall receive only the benefits as provided in the appropriate section of Article II applicable to the respective termination.

4.4    Section 409A Payment Restrictions. The provisions of this Agreement shall be construed in a manner that is consistent with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (Section 409A of the Code, together, with any state law of similar effect, “Section 409A”) in order to avoid any adverse tax consequences to the Officer. It is intended that each installment of the payments of the severance compensation described in this Section 4 together with all other payments and benefits provided to Officer by Corporation, whether under this Agreement or otherwise, is a separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i) and satisfies, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treas. Reg. §§ 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, to the extent it is determined

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that such payments constitute “deferred compensation” under Section 409A and Officer is a “specified employee,” as such term is defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of such payments shall be delayed as follows: on the earlier of six months and one day after Officer’s separation from service (as defined below) or the date of Officer’s death, the Corporation shall (A) pay to Officer a lump sum amount equal to the sum of the payments that Officer would otherwise have received through the delayed payment date, and (B) commence any remaining payments in accordance with the terms of this Agreement or such other plan or arrangement of deferred compensation, as applicable. To the extent that any such deferred compensation benefit is payable upon an event involving the Officer’s cessation of services, such payment(s) shall not be made unless such event constitutes a “separation from service” pursuant to the default definition in Treas. Reg. § 1.409A-1(h).

4.5    Golden Parachute Restrictions. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by or on behalf of the Corporation to or for the benefit of the Officer as a result of and contingent on a “change in control,” as defined in section 280G of the Code, (such amounts contingent on a change in control as described in Treas. Reg. § 1.280G-1 Q/A-22) whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, (together, the “Contingent Payment”) would constitute a “parachute payment,” as defined in Treas. Reg. § 1.280G-1 Q/A-30, the amount of the Contingent Payment to Officer shall be (A) reduced to an amount that is one dollar less than 300% of the Officer’s “base amount” (as defined in section 280G(b)(3)(A) of the Code), so that the amount of such payments do not constitute a parachute payment (the “Safe Harbor Payment”), or, if greater, (B) the entire Contingent Payment, unreduced by the calculation in clause (A), provided that the net value of such Contingent Payment to the Officer exceeds the Safe Harbor Payment, after taking into account the additional taxes to Officer that apply to the unreduced Contingent Payment, including the excise taxes imposed thereon under section 4999 of the Code. The determination of the amount to be paid to Officer on account of this Section 4.5 shall be made by the accountant, tax counsel or other similar expert advisor to Officer (the “Tax Advisor”), which shall, if requested, provide detailed supporting calculations both to the Corporation and the Officer and if requested, a written opinion. The supporting calculations shall include a valuation of the non-competition provisions of Section 5. The costs and expenses of the Tax Advisor shall be the responsibility of the Corporation.

4.6.    Release of Claims. The payments set forth in Sections 4.1 and 4.2 of this Agreement are subject to the execution and delivery by Officer of a waiver and general release of claims (the “Release”) to Corporation substantially in the form attached hereto as Exhibit A (and having not revoked such Release for a period of seven (7) days following its execution by Officer and its delivery to the Corporation).

5.    Non-Competition. During the term of this Agreement and for the longer of: (i) any period during which Officer is receiving periodic severance payments pursuant to Section 4.2, or (ii) one year following a Termination Upon a Change in Control, in either case so long as the payments provided for in Section 4.1 or 4.2 are made on a timely basis:

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(a)    Officer shall not, without the prior written consent of Corporation, directly or indirectly, own, manage, operate, control, be connected with as an officer, employee, partner, consultant or otherwise, or otherwise engage or participate in any corporation or other business entity engaged in the business of buying, selling, developing, building and/or managing real estate facilities for the medical and healthcare sectors of the real estate industry. Officer understands and acknowledges that Corporation carries on business nationwide and that the nature of Corporation’s activities cannot be confined to a limited area. Accordingly, Officer agrees that the geographic scope of this Section 5 shall include the United States of America. Notwithstanding the foregoing, the ownership by Officer of less than 2% of any class of the outstanding capital stock of any corporation conducting such a competitive business which is regularly traded on a national securities exchange or in the over-the-counter market shall notbe a violation of the foregoing covenant.

(b)    Simultaneously with Officer’s execution of this Agreement and upon each anniversary of the Effective Date, Officer shall notify the Chairman of the Compensation Committee of the nature and extent of Officer’s investments, stock holdings, employment as an employee, director, or any similar interest in any business or enterprise engaged in buying, selling, developing, building, and/or managing real estate facilities for the medical and healthcare sectors of the real estate industry other than Corporation; provided, however, that Officer shall have no obligation to disclose any investment under $100,000 in value or any holdings of publicly traded securities which are not in excess of one percent of the outstanding class of such securities.

(c)    Officer shall not contact or solicit, directly or indirectly, any customer, client, tenant or account whose identity Officer obtained through association with Corporation, regardless of the geographical location of such customer, client, tenant or account, nor shall Officer, directly or indirectly, entice or induce, or attempt to entice or induce, any employee of Corporation to leave such employ, nor shall Officer employ any such person in any business similar to or in competition with that of Corporation. Officer hereby acknowledges and agrees that the provisions set forth in this Section 5 constitute a reasonable restriction on her ability to compete with Corporation and will not adversely affect her ability to earn income sufficient to support her and/or her family.

(d)    The parties hereto agree that, in the event a court of competent jurisdiction shall determine that the geographical or durational elements of this covenant are unenforceable, such determination shall not render the entire covenant unenforceable. Rather, the excessive aspects of the covenant shall be reduced to the threshold which is enforceable, and the remaining aspects shall not be affected thereby.

6.    Trade Secrets and Customer Lists. Officer agrees to hold in strict confidence all information concerning any matters affecting or relating to the business of Corporation and its subsidiaries and affiliates, including, without limiting the generality of the foregoing, its manner of operation, business plans, business prospects, agreements, protocols, processes, computer programs, customer lists, market strategies, internal performance statistics, financial data, marketing information and analyses, or other data, without regard to the capacity in which such

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information was acquired. Officer agrees that she will not, directly or indirectly, use any such information for the benefit of any person or entity other than Corporation or disclose or communicate any of such information in any manner whatsoever other than to the directors, officers, employees, agents, and representatives of Corporation who need to know such information, who shall be informed by Officer of the confidential nature of such information and directed by Officer to treat such information confidentially. Such information does not include information which (i) was disclosed to the public by Corporation or becomes generally available to the public other than as a result of an unauthorized disclosure by Officer or her representatives, or (ii) was or becomes available to Officer on a nonconfidential basis from a source other than Corporation or its advisors provided that such source is not known to Officer to be bound by a confidentiality agreement with Corporation, or otherwise prohibited from transmitting the information to Officer by a contractual, legal or fiduciary obligation; notwithstanding the foregoing, if any such information does become generally available to the public, Officer agrees not to further discuss or disseminate such information except in the performance of her duties as Officer. Upon Corporation's request, Officer will return all information furnished to her related to the business of Corporation. The parties hereto stipulate that all such information is material and confidential and gravely affects the effective and successful conduct of the business of Corporation and Corporation's goodwill, and that any breach of the terms of this Section 6 shall be a material breach of this Agreement. The terms of this Section 6 shall remain in effect following the termination of this Agreement.

7.    Use of Proprietary Information. Officer recognizes that Corporation possesses a proprietary interest in all of the information described in Section 6 and has the exclusive right and privilege to use, protect by copyright, patent or trademark, manufacture or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Officer, except as otherwise agreed between Corporation and Officer in writing. Officer expressly agrees that any products, inventions, discoveries or improvements made by Officer, her agents or affiliates based on or arising out of the information described in Section 6 shall be (i) deemed a work made for hire under the terms of United States Copyright Act, 17 U.S.C. § 101 et seq., and Corporation shall be the owner of all such rights with respect thereto and (ii) the property of and inure to the exclusive benefit of Corporation.

8.    Miscellaneous.

8.1    Payment Obligations. Corporation’s obligation to pay Officer the compensation and to make the arrangements provided herein shall be unconditional, and Officer shall have no obligation whatsoever to mitigate damages hereunder. In the event that any arbitration, litigation or other action after a Change in Control is brought to enforce or interpret any provision contained herein, Corporation, to the extent permitted by applicable law and Corporation’s Articles of Incorporation and Bylaws, hereby indemnifies Officer for Officer’s reasonable attorneys’ fees and disbursements incurred in such arbitration, litigation, or other action and shall advance payment of such attorneys’ fees and disbursements.

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8.2    Waiver. The waiver of the breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the same or other provision hereof.

8.3    Entire Agreement; Modifications. Except as otherwise provided herein, this Agreement represents the entire understanding among the parties with respect to the subject matter hereof, and, as of the Effective Date, this Agreement supersedes any and all prior understandings, agreements, plans and negotiations, whether written or oral, with respect to the subject matter hereof, including without limitation, the Prior Agreement. All modifications to the Agreement must be in writing and signed by the party against whom enforcement of such modification is sought.

8.4    Notices. All notices and other communications under this Agreement shall be in writing and shall be given by personal delivery, nationally recognized overnight courier, telefacsimile or first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given upon receipt in the event of personal delivery or overnight courier, three days after mailing, or 12 hours after transmission of a telefacsimile to the respective persons named below:

If to Corporation:

    Healthcare Realty Trust Incorporated
3310 West End Avenue, Suite 700
Nashville, Tennessee 37203

Phone: (615) 269-8175
Fax: (615) 269-8122

    If to Officer, by hand delivery to Officer on the premises of the Corporation or to the most recent address of Officer maintained in the records of the Corporation.

Any party may change such party’s address for notices by notice duly give pursuant to this Section 8.4.

8.5    Headings. The Section headings herein are intended for reference and shall not by themselves determine the construction or interpretation of this Agreement.

8.6    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee.

8.7    Arbitration. Any controversy or claim arising out of or relating to this Agreement, or breach thereof, shall be settled by arbitration in Nashville, Tennessee in accordance with the Rules of the American Arbitration Association, and judgment upon any proper award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. There shall be three arbitrators, one to be chosen directly by each party at will, and the third arbitrator to be selected by the two arbitrators so chosen. To the extent permitted by the Rules of

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the American Arbitration Association, the selected arbitrators may grant equitable relief. The cost of the arbitration, including the cost of the record or transcripts thereof, if any, administrative fees, and all other fees shall be borne by Corporation. Except as otherwise provided in Section 8.1 with respect to events following a Change in Control, to the extent that Officer prevails with respect to any portion of an arbitration award, Officer shall be reimbursed by Corporation for the costs and expenses incurred by Officer, including reasonable attorneys’ fees, in connection with the arbitration in an amount proportionate to the award to Officer as compared to the amount in dispute.

8.8    Severability. Should a court or other body of competent jurisdiction determine that any provision of this Agreement is excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, and all other provisions of this Agreement shall be deemed valid and enforceable to the extent possible.

8.9    Survival of Corporation’s Obligations. Corporation’s obligations hereunder shall not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business, or similar event relating to Corporation. This Agreement shall not be terminated by any merger or consolidation or other reorganization of Corporation. In the event any such merger, consolidation or reorganization shall be accomplished by transfer of stock or by transfer of assets or otherwise, the provisions of this Agreement shall be binding upon and inure to the benefit of the surviving or resulting corporation or person. This Agreement shall be binding upon and inure to the benefit of the executors, administrators, heirs, successors and assigns of the parties; provided, however, that except as herein expressly provided, this Agreement shall not be assignable either by Corporation (except to an affiliate of Corporation in which event Corporation shall remain liable if the affiliate fails to meet any obligations to make payments or provide benefits or otherwise) or by Officer.

8.10    Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same Agreement.

8.11    Withholdings. All compensation and benefits to Officer hereunder shall be reduced only by all federal, state, local and other withholdings and similar taxes and payments that are required by applicable law. Except as otherwise specifically agreed by Officer, no other offsets or withholdings shall apply to reduce the payment of compensation and benefits hereunder.

8.12    Indemnification. In addition to any rights to indemnification to which Officer is entitled to under Corporation’s Articles of Incorporation and Bylaws, Corporation shall indemnify Officer at all times during and after the term of this Agreement to the maximum extent permitted under Section 2-418 of the General Corporation Law of the State of Maryland or any successor provision thereof and any other applicable state law, and shall pay Officer’s expenses in defending any civil or criminal action, suit, or proceeding (unrelated to a dispute under this Agreement) in advance of the final disposition of such action, suit, or proceeding, to the maximum extent permitted under such applicable state laws. The Corporation will provide advance payment of legal costs and expenses that are reasonable and appropriate for defending such action, suit or proceeding. The indemnification provisions contained in this Section 8.12

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shall survive the termination of this Agreement and Officer’s employment by Corporation indefinitely.

[Execution Page Follows]

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EXECUTION PAGE

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the 17th day of May, to be effective as of the Effective Date.

Corporation:

Healthcare Realty Trust Incorporated

By:/s/ Todd J. Meredith    

Name:    Todd J. Meredith

Title:    President and Chief Executive Officer

Officer:

/s/ Julie F. Wilson    

                    Julie F. Wilson

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Exhibit A

Form of Release

GENERAL RELEASE, dated as of [_______________], 20[__] (the “Effective Date”), entered into by Julie F. Wilson (“Officer”) in favor of Healthcare Realty Trust Incorporated (along with its affiliates and subsidiaries, the “Corporation”) and the current and prior directors, officers, employees, agents and representatives of the Corporation and its subsidiaries, in their capacity as such (collectively, the “Released Parties”).

WHEREAS, Officer and the Corporation previously entered into an Amended and Restated Employment Agreement (the “Employment Agreement”), dated as of July 1, 2021 that has governed the terms and conditions of Officer’s employment by the Corporation,and Officer’s retention thereunder has been terminated in accordance with the terms thereof.

WHEREAS, this General Release (this “Release”) is the release referred to in Section 4.6 of the Employment Agreement.

WHEREAS, following execution of this Release and expiration of the seven-day revocation period referred to in Section 5 below, Officer will be entitled to payment of certain amounts (such amounts, collectively, “Termination Payments”) and other rights and benefits (such other rights and benefits, collectively, “Termination Benefits”) referred to in Sections 4.1 and/or 4.2 of the Employment Agreement, as applicable.

WHEREAS, Officer desires to compromise, finally settle and fully release actual or potential claims, including, without limitation, those related to Officer’s retention and termination of retention that Officer in any capacity may have or claim to have against the Corporation or any of the other Released Parties, excepting only those claims expressly provided herein to be excluded.

WHEREAS, Officer acknowledges that she is waiving her rights or claims only in exchange for consideration in addition to anything of value to which she already is entitled.

NOW, THEREFORE, in consideration of the foregoing and the Corporation’s agreement to pay the Termination Benefits and to provide the Termination Benefits, Officer, intending to be legally bound hereby, for herself and her heirs, executors, administrators, legal representatives, successors and assigns, does hereby agree as follows:

1. The recitals above are true and correct.

2. Except as expressly provided in Section 4 below, Officer does hereby completely release and forever discharge the Corporation and the other Released Parties of and from any and all actions, causes of action, suits, counterclaims, debts, dues, covenants, contracts, bonuses, controversies, agreements, promises, rights, claims, charges, complaints, expenses, costs (including, without limitation, attorneys’ fees and other costs of defense or prosecution),

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damages, losses, liabilities and demands whatsoever in law or equity (all of the foregoing, collectively, “Claims”) whatsoever and of every nature and description, whether known or unknown, suspected or unsuspected, foreseen or unforeseen, real or imaginary, actual or potential, liquidated or unliquidated, contingent or certain, and whether arising at law or in equity, under the common law, state law, federal law or any other law or otherwise, that Officer ever had, may now have or hereafter can, shall or may have against the Corporation or any of the other Released Parties, for, upon or by reason of any matter, cause or thing whatsoever from the beginning of time to the date of this Release.

3. The release set forth in Section 2 above shall extend and apply, without limitation, to any and all Claims in connection with Officer's employment or the termination thereof, including, without limitation, wrongful termination, breach of express or implied contract or unpaid wages or pursuant to any federal, state or local employment laws, regulations or executive orders prohibiting, inter alia, discrimination on the basis of age, race, sex, national origin, religion, handicap and/or disability; and any and all other federal, state and local laws and regulations prohibiting, without limitation, discrimination in employment, retaliation, conspiracy, tortious or wrongful discharge, breach of an express or implied contract, breach of a covenant of good faith and fair dealing, intentional and/or negligent infliction of emotional distress, defamation, misrepresentation or fraud, negligence, negligent supervision, hiring or retention, assault, battery, detrimental reliance or any other offense.

4. Officer’s release provided in Sections 2 and 3 above does not extend or apply to any Claims with respect to the following (“Excluded Claims”): (a) the Corporation’s obligations to pay the Termination Payments or to pay or provide the Termination Benefits, (b) Officer’s entitlement to be indemnified by the Corporation with respect to Claims relating to any action or inaction, or any conduct or misconduct, by Officer in her capacity as an Executive Vice President of the Corporation or otherwise as a director, officer or employee of the Corporation (or in any similar capacity), whether pursuant to (i) the Corporation’s articles of incorporation (as amended, restated or otherwise modified and in effect at the relevant time), (ii) the Corporation’s bylaws (as amended, restated or otherwise modified and in effect at the relevant time),(iii) any resolution duly adopted by the Corporation’s Board of Directors or shareholders and in effect at the relevant time, (iv) the Maryland General Corporation Law, (v) any other applicable law, rule or regulation or court order or judgment or any other agreement in effect at the relevant time or (c) any other rights or claims that may arise after the date of this Release, and/or (vi) Corporation’s obligations to indemnify Officer pursuant to Section 8.12 of the Employment Agreement. For avoidance of doubt, nothing contained herein shall be deemed a waiver or release by Officer with respect to any protections or other rights to which she may be entitled under any D&O or other insurance policy.

5. Pursuant to the provisions of the Older Workers Benefit Protection Act (“OWBPA”), which applies to Officer’s waiver of rights under the Age Discrimination in Employment Act, Officer has had a period of at least twenty-one (21) days within which to consider whether to execute this Release. Also pursuant to the OWBPA, Officer may revoke the Release within seven (7) days of its execution. It is specifically understood that this Release shall not become effective or enforceable until the seven-day revocation period has expired. Consideration for this

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Release will not be paid until the later of (a) expiration of the seven-day revocation period or (b) the date provided for in the Employment Agreement.

6. Officer acknowledges that, pursuant to the OWBPA, the Corporation has advised Officer, in writing, to consult with an attorney before executing this Release.

7. Officer covenants and agrees that she will not bring, initiate, enter into, maintain or participate in any suit, arbitration or other administrative or judicial proceeding, by means of a direct claim, cross claim, counterclaim, setoff or otherwise, against any Released Party based or premised on any of the Claims released above.

8. Officer acknowledges that the Corporation will not pay or be obligated to pay, and Officer shall not be entitled to, any consideration other than as expressly provided for by this Release or the Employment Agreement or with respect to Excluded Claims.

9. This Release does not constitute an admission by the Corporation or any other Released Party of a violation of any law, order, regulation or enactment or of wrongdoing of any kind.

10. Any controversy or claim arising out of or relating to this Release, or breach thereof, shall be settled by arbitration in Nashville, Tennessee in accordance with the Rules of the American Arbitration Association, and judgment upon any proper award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. There shall be three arbitrators, one to be chosen directly by each party at will, and the third arbitrator to be selected by the two arbitrators so chosen. To the extent permitted by the Rules of the American Arbitration Association, the selected arbitrators may grant equitable relief. The cost of the arbitration, including the cost of the record or transcripts thereof, if any, administrative fees, and all other fees shall be borne by Corporation. To the extent that Officer prevails with respect to any portion of an arbitration award, Officer shall be reimbursed by Corporation for the costs and expenses incurred by Officer, including reasonable attorneys’ fees, in connection with the arbitration in an amount proportionate to the award to Officer as compared to the amount in dispute.

11. The failure of any provision of this Release shall in no manner affect the right to enforce the same, and the waiver by any party of any breach of any provision of this Release shall not be construed to be a waiver of such party of any succeeding breach of such provision or a waiver by such party of any breach of any other provision. In the event that any provision or portion of this Release shall be determined to be invalid or unenforceable for any reason, the remaining provisions of this Release shall be unaffected thereby and shall remain in full force and effect.

12. This Release represents the entire understanding and agreement of Officer and the Released Parties with respect to the subject matter hereof, and there are no promises, agreements, conditions, undertakings, warranties or representations, whether written or oral, express or implied, by or among Officer and the Released Parties with respect to such subject matter other

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than as set forth herein. This Release cannot be amended, supplemented or modified except by an instrument in writing signed by Officer and the Corporation, and no waiver of this Release or any provision hereof shall be effective except to the extent such waiver is in writing, specifies that the purpose thereof is to waive this Release or a provision hereof and is executed and delivered by the party to be charged therewith.

13. This Release shall be binding upon and be enforceable against Officer and her heirs, executors, administrators, legal representatives, successors and assigns and shall inure to the benefit of and be enforceable by each of the Released Parties and his, her or its heirs, executors, administrators, legal representatives, successors and assigns.

14. OFFICER REPRESENTS AND CONFIRMS THAT SHE HAS CAREFULLY READ THIS RELEASE, THAT THIS RELEASE HAS BEEN FULLY EXPLAINED TO HER, THAT SHE HAS HAD THE OPPORTUNITY TO HAVE THIS RELEASE REVIEWED BY AN ATTORNEY, THAT SHE FULLY UNDERSTANDS THE FINAL AND BINDING EFFECT OF THIS RELEASE, THAT THE ONLY PROMISES MADE TO HER TO SIGN THE RELEASE ARE THOSE STATED IN THIS RELEASE AND THAT OFFICER IS SIGNING THIS RELEASE VOLUNTARILY WITH THE FULL INTENT OF RELEASING THE RELEASED PARTIES OF ALL CLAIMS DESCRIBED HEREIN.

Officer has executed and delivered this Release as of the date set forth below and this Release is and shall be effective, subject to expiration of the seven-day revocation period referred to in Section 5 above.

Dated: ____________________, 20__
	Julie F. Wilson

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EX-31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302

Exhibit 31.1

Healthcare Realty Trust Incorporated

Quarterly Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Todd J. Meredith, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Healthcare Realty Trust Incorporated;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 4, 2021
		/s/ TODD J. MEREDITH
		Todd J. Meredith
		President and Chief Executive Officer

EX-31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302

Exhibit 31.2

Healthcare Realty Trust Incorporated

Quarterly Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, J. Christopher Douglas, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Healthcare Realty Trust Incorporated;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 4, 2021
		/s/ J. CHRISTOPHER DOUGLAS
		J. Christopher Douglas
		Executive Vice President and Chief Financial Officer

EX-32

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350 SECTION 906

Exhibit 32

Healthcare Realty Trust Incorporated

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

    In connection with the Quarterly Report of Healthcare Realty Trust Incorporated (the “Company”) on Form 10-Q for the quarter ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Todd J. Meredith, President and Chief Executive Officer of the Company, and I, J. Christopher Douglas, Executive Vice President and Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2021
		/s/ TODD J. MEREDITH
		Todd J. Meredith
		President and Chief Executive Officer
		/s/ J. CHRISTOPHER DOUGLAS
		J. Christopher Douglas
		Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 31, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-11852
Entity Registrant Name	HEALTHCARE REALTY TRUST INCORPORATED
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	62-1507028
Entity Address, Address Line One	3310 West End Avenue, Suite 700
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37203
City Area Code	615
Local Phone Number	269-8175
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	HR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		145,529,657
Entity Central Index Key	0000899749
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Real estate properties
Land	$ 375,374	$ 362,695
Buildings, improvements and lease intangibles	4,249,352	4,220,297
Personal property	11,589	11,195
Investment in financing receivable, net	104,642	0
Construction in progress	1,147	0
Land held for development	27,226	27,226
Total real estate properties	4,769,330	4,621,413
Less accumulated depreciation and amortization	(1,285,251)	(1,239,224)
Total real estate properties, net	3,484,079	3,382,189
Cash and cash equivalents	18,739	15,303
Assets held for sale, net	21,065	20,646
Operating lease right-of-use assets	121,288	125,198
Financing lease right-of-use assets	19,450	19,667
Investments in unconsolidated joint ventures	117,935	73,137
Other assets, net	182,123	176,120
Total assets	3,964,679	3,812,260
Liabilities
Notes and bonds payable	1,614,479	1,602,769
Accounts payable and accrued liabilities	74,927	81,174
Liabilities of assets held for sale	942	1,216
Operating lease liabilities	92,110	92,273
Financing lease liabilities	18,648	18,837
Other liabilities	67,319	67,615
Total liabilities	1,868,425	1,863,884
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value per share; 50,000 shares authorized; none issued and outstanding	0	0
Common stock, $.01 par value per share; 300,000 shares authorized; 145,530 and 139,487 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	1,455	1,395
Additional paid-in capital	3,818,592	3,635,341
Accumulated other comprehensive loss	(13,580)	(17,832)
Cumulative net income attributable to common stockholders	1,246,617	1,199,499
Cumulative dividends	(2,956,830)	(2,870,027)
Total stockholders' equity	2,096,254	1,948,376
Total liabilities and stockholders' equity	$ 3,964,679	$ 3,812,260

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (shares)	50,000,000	50,000,000
Preferred stock, issued (shares)	0	0
Preferred stock, outstanding (shares)	0	0
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (shares)	300,000,000	300,000,000
Common stock, issued (shares)	145,530,000	139,487,000
Common stock, outstanding (shares)	145,530,000	139,487,000

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Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues
Rental income	$ 128,486	$ 122,358	$ 256,874	$ 245,001
Interest from financing receivable, net	510		510
Other operating	2,427	1,332	4,378	3,496
Revenues	131,423	123,690	261,762	248,497
Expenses
Property operating	51,509	46,580	103,724	96,134
General and administrative	8,545	7,434	17,044	16,199
Acquisition and pursuit costs	670	431	1,414	1,181
Depreciation and amortization	49,826	47,691	99,905	95,188
Expenses	110,550	102,136	222,087	208,702
Other Income (Expense)
Gain on sales of real estate properties	20,970	68,267	39,860	68,218
Interest expense	(13,261)	(14,442)	(26,523)	(28,402)
Impairment of real estate properties	(5,078)		(5,912)
Equity loss from unconsolidated joint ventures	(146)	(116)	(220)	(127)
Interest and other income (expense), net	(262)	250	238	344
Total other income (expense)	2,223	53,959	7,443	40,033
Net Income	$ 23,096	$ 75,513	$ 47,118	$ 79,828
Basic earnings per common share (in dollars per share)	$ 0.16	$ 0.56	$ 0.33	$ 0.59
Diluted earnings per common share (in dollars per share)	$ 0.16	$ 0.56	$ 0.33	$ 0.59
Weighted average common shares outstanding - basic	141,917,213	133,633,646	140,354,167	133,334,946
Weighted average common shares outstanding - diluted	142,048,988	133,695,912	140,467,777	133,420,312
Revenue, Product and Service [Extensible List]	us-gaap:ServiceMember	us-gaap:ServiceMember

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net income	$ 23,096	$ 75,513	$ 47,118	$ 79,828
Interest rate swaps
Reclassification adjustments for losses included in net income (interest expense)	1,114	938	2,209	1,267
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	(807)	(1,455)	2,043	(15,386)
Other comprehensive income (loss)	307	(517)	4,252	(14,119)
Comprehensive income	23,403	74,996	51,370	65,709
Interest Rate Swaps
Interest rate swaps
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	(807)	(1,455)	(2,043)	11,119
Treasury Rate Locks
Interest rate swaps
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	$ 0	$ 0	$ 0	$ 4,267

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Condensed Consolidated Statements of Equity (Unaudited) Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Cumulative Net Income	Cumulative Dividends
Beginning balance at Dec. 31, 2019	$ 1,900,009	$ 1,347	$ 3,485,003	$ (6,175)	$ 1,127,304	$ (2,707,470)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	40,363	12	40,351
Common stock redemptions	(798)		(798)
Share-based compensation	5,004	1	5,003
Net income	79,828				79,828
Reclassification adjustments for losses included in net income (interest expense)	1,267			1,267
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	(15,386)			(15,386)
Dividends to common stockholders (in usd per share)	(80,926)					(80,926)
Ending balance at Jun. 30, 2020	1,929,361	1,360	3,529,559	(20,294)	1,207,132	(2,788,396)
Beginning balance at Mar. 31, 2020	1,859,428	1,349	3,494,123	(19,777)	1,131,619	(2,747,886)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	33,042	11	33,031
Share-based compensation	2,405		2,405
Net income	75,513				75,513
Reclassification adjustments for losses included in net income (interest expense)	938			938
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	(1,455)			(1,455)
Dividends to common stockholders (in usd per share)	(40,510)					(40,510)
Ending balance at Jun. 30, 2020	1,929,361	1,360	3,529,559	(20,294)	1,207,132	(2,788,396)
Beginning balance at Dec. 31, 2020	1,948,376	1,395	3,635,341	(17,832)	1,199,499	(2,870,027)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	179,275	59	179,216
Common stock redemptions	(1,611)	(1)	(1,610)
Share-based compensation	5,647	2	5,645
Net income	47,118				47,118
Reclassification adjustments for losses included in net income (interest expense)	2,209			2,209
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	2,043			2,043
Dividends to common stockholders (in usd per share)	(86,803)					(86,803)
Ending balance at Jun. 30, 2021	2,096,254	1,455	3,818,592	(13,580)	1,246,617	(2,956,830)
Beginning balance at Mar. 31, 2021	1,998,109	1,417	3,699,867	(13,887)	1,223,521	(2,912,809)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs	116,191	38	116,153
Common stock redemptions	(55)		(55)
Share-based compensation	2,627	0	2,627
Net income	23,096				23,096
Reclassification adjustments for losses included in net income (interest expense)	1,114			1,114
Gains (losses) arising during the period on interest rate swaps and treasury rate locks	(807)			(807)
Dividends to common stockholders (in usd per share)	(44,021)					(44,021)
Ending balance at Jun. 30, 2021	$ 2,096,254	$ 1,455	$ 3,818,592	$ (13,580)	$ 1,246,617	$ (2,956,830)

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Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Dividend per share to common Stockholders (in dollars per share)	$ 0.3025	$ 0.3000	$ 0.6050	$ 0.6000

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
OPERATING ACTIVITIES
Net income	$ 23,096	$ 75,513	$ 47,118	$ 79,828
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			99,905	95,188
Other amortization			1,728	2,510
Share-based compensation			5,647	5,004
Amortization of straight-line rent receivable (lessor)			(3,024)	(1,807)
Amortization of straight-line rent on operating leases (lessee)			735	749
Gain on sales of real estate properties			(39,860)	(68,218)
Impairment of real estate properties			5,912
Equity loss from unconsolidated joint ventures	146	116	220	127
Distributions from unconsolidated joint ventures				184
Changes in operating assets and liabilities:
Other assets, including right-of-use-assets			(4,746)	(1,272)
Accounts payable and accrued liabilities			(10,418)	(5,902)
Other liabilities			2,412	(1,152)
Net cash provided by operating activities			105,629	105,239
INVESTING ACTIVITIES
Acquisitions of real estate			(100,121)	(87,417)
Development of real estate			(1,415)	(2,678)
Additional long-lived assets			(41,839)	(44,316)
Investments in unconsolidated joint ventures			(45,018)
Investment in financing receivable			(104,648)
Proceeds from sales of real estate properties			90,144
Net cash used in investing activities			(202,897)	(134,411)
FINANCING ACTIVITIES
Net borrowings (repayments) on unsecured credit facility			13,000	(293,000)
Borrowings on term loan				150,000
Borrowings of notes and bonds payable				298,995
Repayments on notes and bonds payable			(1,925)	(31,698)
Dividends paid			(86,803)	(80,926)
Net proceeds from issuance of common stock			179,381	40,169
Common stock redemptions			(2,014)	(892)
Settlement of treasury rate locks				(4,267)
Debt issuance and assumption costs			(252)	(3,018)
Payments made on finance leases	(321)	(2,847)	(683)	(3,168)
Net cash provided by financing activities			100,704	72,195
Increase in cash and cash equivalents			3,436	43,023
Cash and cash equivalents at beginning of period			15,303	657	$ 657
Cash and cash equivalents at end of period	$ 18,739	$ 43,680	18,739	43,680	$ 15,303
Supplemental Cash Flow Information
Interest paid			24,659	26,101
Invoices accrued for construction, tenant improvements and other capitalized costs			19,506	10,013
Mortgage notes payable assumed upon acquisition (adjusted to fair value)				19,269
Capitalized interest			$ 154	$ 706

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Summary of significant accounting policies

Business Overview

Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2021, the Company had gross investments of approximately $4.7 billion in 227 real estate properties located in 24 states totaling approximately 16.3 million square feet. The Company provided leasing and property management services to approximately 13.4 million square feet nationwide. The Company owns 50% of an unconsolidated joint venture with Teachers Insurance and Annuity Association ("TIAA Joint Venture") and earns certain fees as the managing member. As of June 30, 2021, the TIAA Joint Venture owned nine real estate properties. See Note 2 for more details regarding the Company's unconsolidated joint ventures.

Basis of Presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2020. All material intercompany transactions and balances have been eliminated in consolidation.

This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2021 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties.

Principles of Consolidation

The Company’s Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis.

For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements.

As of June 30, 2021, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities. See Note 2 for more details regarding the Company's unconsolidated joint ventures.

Use of Estimates in the Condensed Consolidated Financial Statements

Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.

The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at June 30, 2021. There can be no assurance that COVID-19 will not have a future material adverse impact on the financial results and business operations of the Company.

Investments in Leases - Financing Receivables, Net

In accordance with Accounting Standards Codification ("ASC") 842, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC 310 “Receivables”. In the second quarter of 2021, the Company acquired a building in San Diego, California in a sale leaseback transaction in which the seller-lessee had a purchase option. Therefore, control was not considered to be transferred under GAAP. Accordingly, this transaction was accounted for as a financing receivable and recorded on the Condensed Consolidated Balance Sheet in the line item Investment in financing receivable, net. The Company evaluated the impact of ASC 326, "Credit Losses" to the financing receivable, and the amount calculated was determined to be immaterial and therefore not recorded.

Income from Leases and Lease Financing Receivables

The Company recognizes the related income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease agreement.

Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. These amounts will be recognized as a reduction to Income from investments in the financing receivable, net over the life of the lease.

Revenue from Contracts with Customers (Topic 606)

The Company recognizes certain revenue under the core principle of Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance.

Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income. Below is a detail of the amounts by category:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
in thousands	2021		2020		2021		2020
Type of Revenue
Parking income	$	1,880	$	1,227	$	3,538	$	3,278
Management fee income	419		69		658		147
Miscellaneous	128		36		182		71
	$	2,427	$	1,332	$	4,378	$	3,496

The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle.

New Accounting Pronouncements

Accounting Standards Update No. 2020-04

On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Real Estate Investments

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Real Estate Investments

Real Estate Investments

2021 Company Acquisitions

The following table details the Company's acquisitions for the six months ended June 30, 2021:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE
San Diego, CA 3	1/7/21	$	17,150	$	17,182	$	17,182	$	—	22,461
Dallas, TX 4	2/1/21	22,515		22,299		22,641		(342)		121,709
Atlanta, GA 4	2/17/21	9,800		10,027		10,073		(46)		44,567
Washington, D.C.	3/3/21	12,750		12,709		12,658		51		26,496
Houston, TX	5/14/21	13,500		12,986		13,379		(393)		45,393
San Diego, CA 5	5/28/21	102,650		103,984		104,629		(645)		160,394
Greensboro, NC	6/28/21	9,390		9,475		10,047		(572)		25,168
Baltimore, MD	6/29/21	14,600		14,357		14,437		(80)		33,316
Total real estate acquisitions		$	202,355	$	203,019	$	205,046	$	(2,027)	479,504

1Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

2Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

3Represents a single-tenant property.

4Includes two properties.

5The Company accounted for this transaction as a financing receivable.

Subsequent to June 30, 2021, the Company acquired the following properties:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE
Denver, CO 1	7/16/21	$	70,426	259,555
Greensboro, NC 2	7/19/21	6,400		18,119
Colorado Springs, CO	7/27/21	33,400		69,526
		$	110,226	347,200

1Includes three properties.

2Represents a single-tenant property.

Unconsolidated Joint Venture Acquisitions

The TIAA Joint Venture is not consolidated for purposes of the Company's Condensed Consolidated Financial Statements. The following table details the TIAA Joint Venture acquisition for the six months ended June 30, 2021:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE	OWNERSHIP %
Denver, CO	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359	50	%
Colorado Springs, CO	4/1/21	7,200		7,288		7,347		(59)		27,510	50	%
Los Angeles, CA	4/8/21	31,335		30,179		30,642		(463)		57,573	50	%
San Antonio, TX	4/30/21	13,600		13,412		13,656		(244)		45,000	50	%
Los Angeles, CA	5/10/21	24,600		24,259		24,147		112		73,078	50	%
Total real estate acquisitions		$	91,110	$	89,194	$	90,342	$	(1,148)	262,520

1Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

2Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

Subsequent to June 30, 2021, the TIAA Joint Venture acquired the following properties:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	OWNERSHIP %
Colorado Springs, CO 1	7/27/21	$	9,133	23,956	50	%

1Includes purchase of adjoining 3.0 acre land parcel.

Unconsolidated Joint Ventures

The Company's investment in and loss recognized for the three and six months ended June 30, 2021 and 2020 related to its joint ventures accounted for under the equity method are shown in the table below:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
Dollars in thousands	2021		2020		2021		2020
Investments in unconsolidated joint ventures, beginning of period 1	$	83,943	$	8,000	$	73,137	$	8,130
New investments during the period	34,138		—		45,018		—
Equity loss recognized during the period 1	(146)		(116)		(220)		(127)
Owner distributions	—		(65)		—		(184)
Investments in unconsolidated joint ventures, end of period 1	$	117,935	$	7,819	$	117,935	$	7,819

1In addition to the TIAA Joint Venture, the Company also has a 55% and 27% ownership interest, respectively, in two limited liability companies that each own a parking garage in Atlanta, Georgia.

2021 Real Estate Asset Dispositions

The following table details the Company's dispositions for the six months ended June 30, 2021:

Dollars in millions	DATE DISPOSED	SALE PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER (INCLUDING RECEIVABLES) 1		GAIN/(IMPAIRMENT)		SQUARE FOOTAGE
Los Angeles, CA 2	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA 3	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA 3	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 3,4	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Total dispositions		$	91,550	$	(1,421)	$	90,129	$	47,049	$	4,105	$	38,975	356,686

1Includes straight-line rent receivables, leasing commissions and lease inducements.

2Includes two properties sold to a single purchaser in two transactions which occurred on March 5 and March 11, 2021.

3Previously classified as held for sale.

4Includes three properties.

Assets Held for Sale

As of June 30, 2021 and December 31, 2020, the Company had four properties classified as assets held for sale. The four properties and an associated land parcel located in Dallas, Texas were sold on July 9, 2021. The sales price was $23.0 million and the Company's net investment in the buildings and land parcel as of June 30, 2021 was approximately $18.7 million.

The table below reflects the assets and liabilities of the properties classified as held for sale as of June 30, 2021 and December 31, 2020:

(Dollars in thousands)	June 30, 2021		December 31, 2020
Balance Sheet data:
Land	$	1,664	$	1,664
Building, improvements and lease intangibles	27,466		27,443
Personal property	39		39
	29,169		29,146
Accumulated depreciation	(10,444)		(10,455)
Real estate assets held for sale, net	18,725		18,691
Other assets, net	2,340		1,955
Assets held for sale, net	$	21,065	$	20,646
Accounts payable and accrued liabilities	$	622	$	533
Other liabilities	320		683
Liabilities of assets held for sale	$	942	$	1,216

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

Lessor Accounting

The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2040. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.

The Company's leases typically have escalators that are either based on a stated percentage or an index such as consumer price index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2021 was $128.5 million and $256.9 million, respectively.

Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of June 30, 2021 were as follows:

In thousands	OPERATING
2021	$	197,162
2022	364,748
2023	316,864
2024	249,638
2025	199,827
2026 and thereafter	553,214
	$	1,881,453

Lessee Accounting

As of June 30, 2021, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2021, the Company had 105 properties totaling 8.8 million square feet that were held under ground leases. Some of the ground lease renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on CPI. The Company had 43 prepaid ground leases as of June 30, 2021. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.1 million and $0.2 million of the Company’s rental expense for the three months ended June 30, 2021 and 2020, respectively, and $0.3 million for the six months ended June 30, 2021 and 2020, respectively.

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2021 were as follows:

In thousands	OPERATING		FINANCING
2021	$	2,049	$	290
2022	4,932		783
2023	4,971		793
2024	5,027		815
2025	5,068		826
2026 and thereafter	303,574		87,983
Total undiscounted lease payments	325,621		91,490
Discount	(233,511)		(72,842)
Lease liabilities	$	92,110	$	18,648

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2021 and 2020:

	THREE MONTHS ENDED June 30,						SIX MONTHS ENDED June 30,
In thousands	2021			2020			2021		2020
Operating lease cost
Operating lease expense	$	1,182		$	1,175		$	2,360	$	2,349
Variable lease expense	972			804			1,868		1,604
Finance lease cost
Amortization of right-of-use assets	88			78			176		148
Interest on lease liabilities	247			240			493		477
Total lease expense	$	2,489		$	2,297		$	4,897	$	4,578
Other information
Operating cash flows outflows related to operating leases	$	2,587		$	1,416		$	4,431	$	3,972
Financing cash flows outflows related to financing leases	$	321		$	2,847		$	683	$	3,168
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	7,212		$	—	$	7,212
Weighted-average remaining lease term (excluding renewal options) - operating leases	48.1			49.1
Weighted-average remaining lease term (excluding renewal options) - finance leases	64.5			65.0
Weighted-average discount rate - operating leases	5.7		%	5.7		%
Weighted-average discount rate - finance leases	5.4		%	5.4		%

Leases

Leases

Lessor Accounting

The Company’s properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2040. Some leases provide for fixed rent renewal terms in addition to market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.

The Company's leases typically have escalators that are either based on a stated percentage or an index such as consumer price index ("CPI"). In addition, most of the Company's leases include nonlease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and nonlease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases recognized for the three and six months ended June 30, 2021 was $128.5 million and $256.9 million, respectively.

Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of June 30, 2021 were as follows:

In thousands	OPERATING
2021	$	197,162
2022	364,748
2023	316,864
2024	249,638
2025	199,827
2026 and thereafter	553,214
	$	1,881,453

Lessee Accounting

As of June 30, 2021, the Company was obligated, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases. As of June 30, 2021, the Company had 105 properties totaling 8.8 million square feet that were held under ground leases. Some of the ground lease renewal terms are based on fixed rent renewal terms and others have market rent renewal terms. These ground leases typically have initial terms of 40 to 99 years with expiration dates through 2119. Any rental increases related to the Company’s ground leases are generally either stated or based on CPI. The Company had 43 prepaid ground leases as of June 30, 2021. The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $0.1 million and $0.2 million of the Company’s rental expense for the three months ended June 30, 2021 and 2020, respectively, and $0.3 million for the six months ended June 30, 2021 and 2020, respectively.

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2021 were as follows:

In thousands	OPERATING		FINANCING
2021	$	2,049	$	290
2022	4,932		783
2023	4,971		793
2024	5,027		815
2025	5,068		826
2026 and thereafter	303,574		87,983
Total undiscounted lease payments	325,621		91,490
Discount	(233,511)		(72,842)
Lease liabilities	$	92,110	$	18,648

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2021 and 2020:

	THREE MONTHS ENDED June 30,						SIX MONTHS ENDED June 30,
In thousands	2021			2020			2021		2020
Operating lease cost
Operating lease expense	$	1,182		$	1,175		$	2,360	$	2,349
Variable lease expense	972			804			1,868		1,604
Finance lease cost
Amortization of right-of-use assets	88			78			176		148
Interest on lease liabilities	247			240			493		477
Total lease expense	$	2,489		$	2,297		$	4,897	$	4,578
Other information
Operating cash flows outflows related to operating leases	$	2,587		$	1,416		$	4,431	$	3,972
Financing cash flows outflows related to financing leases	$	321		$	2,847		$	683	$	3,168
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	7,212		$	—	$	7,212
Weighted-average remaining lease term (excluding renewal options) - operating leases	48.1			49.1
Weighted-average remaining lease term (excluding renewal options) - finance leases	64.5			65.0
Weighted-average discount rate - operating leases	5.7		%	5.7		%
Weighted-average discount rate - finance leases	5.4		%	5.4		%

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Notes and Bonds Payable

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Notes and bonds payable

Notes and Bonds Payable

The table below details the Company’s notes and bonds payable. 

	MATURITY DATES	BALANCE AS OF				EFFECTIVE INTEREST RATE as of 6/30/2021
Dollars in thousands		6/30/2021		12/31/2020
$700 million Unsecured Credit Facility	5/23	$	13,000	$	—	1.00	%
$200 million Unsecured Term Loan due 2024, net of issuance costs 1	5/24	199,348		199,236		1.95	%
$150 million Unsecured Term Loan due 2026, net of issuance costs 2	6/26	149,306		149,479		2.48	%
Senior Notes due 2025, net of discount and issuance costs 3	5/25	248,906		248,776		4.08	%
Senior Notes due 2028, net of discount and issuance costs	1/28	296,365		296,123		3.84	%
Senior Notes due 2030, net of discount and issuance costs 4	3/30	296,640		296,468		2.71	%
Senior Notes due 2031, net of discount and issuance costs	3/31	295,149		294,924		2.24	%
Mortgage notes payable, net of discounts and issuance costs and including premiums	11/22-4/27	115,765		117,763		4.07	%
		$	1,614,479	$	1,602,769

1The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points).

2The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 95 basis points).

3The effective interest rate includes the impact of the $1.7 million settlement of forward-starting interest rate swaps that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

4The effective interest rate includes the impact of the $4.3 million settlement of forward interest rate hedges that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

Changes in Debt Structure

On June 1, 2021, the Company entered into a second amendment to the Amended and Restated Term Loan, dated May 31, 2019 that reduced the current interest rate on the $150 million portion of the loan due 2026 from LIBOR plus a margin rate ranging from 1.45% to 2.40% (previously 1.60%) to LIBOR plus a margin rate ranging from 0.80% to 1.60% (0.95% as of June 30, 2021). With the amendment, the Company paid up front fees of approximately $0.5 million, of which $0.2 million was paid to lenders, capitalized and amortized over the remainder of the term of the loan, and $0.3 million was paid to lenders as administrators and was expensed in the second quarter of 2021. In addition, the amendment added a sustainability metric incentive tied to increasing the Company's properties with green building certifications.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative financial instruments

Derivative Financial Instruments

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

As of June 30, 2021, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

DERIVATIVE INSTRUMENT	NUMBER OF INSTRUMENTS	NOTIONAL AMOUNT in millions
Interest rate swaps	8	$175.0

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of June 30, 2021.

	BALANCE AT JUNE 30, 2021
In thousands	BALANCE SHEET LOCATION	FAIR VALUE
Derivatives designated as hedging instruments
Interest rate swaps	Other liabilities	$	9,219
Total derivatives designated as hedging instruments		$	9,219

Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss)

The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2021 and 2020 related to the Company's outstanding interest rate swaps.

	(GAIN) LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended June 30,					LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended June 30,
In thousands	2021		2020			2021		2020
Interest rate swaps	$	807	$	1,455	Interest expense	$	965	$	789
Settled treasury hedges	—		—		Interest expense	107		107
Settled interest rate swaps	—		—		Interest expense	42		42
	$	807	$	1,455	Total interest expense	$	1,114	$	938

	(GAIN) LOSS RECOGNIZED IN AOCI ON DERIVATIVE six months ended June 30,					LOSS RECLASSIFIED FROM AOCI INTO INCOME six months ended June 30,
In thousands	2021		2020			2021		2020
Interest rate swaps	$	(2,043)	$	11,119	Interest expense	$	1,912	$	1,061
Settled treasury hedges	—		4,267		Interest expense	213		122
Settled interest rate swaps	—		—		Interest expense	84		84
	$	(2,043)	$	15,386	Total interest expense	$	2,209	$	1,267

The Company estimates that $4.4 million will be reclassified from AOCI to interest expense over the next 12 months.

Credit-risk-related Contingent Features

The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness.

As of June 30, 2021, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $9.6 million. As of June 30, 2021, the Company has not posted any collateral related to these agreements and was not in breach of any agreement.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and Contingencies

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

During the second quarter of 2021, the Company continued the redevelopment of 110,860 square feet of a 217,114 square foot medical office building in Dallas, Texas. As of June 30, 2021, the Company had funded approximately $0.5 million in project costs. The building continues to operate with in-place leases during construction. The first new tenant lease of the redevelopment is expected to commence in the first quarter of 2022.

During the second quarter of 2021, the Company continued the redevelopment of a 110,883 square foot medical office building in Memphis, Tennessee. As of June 30, 2021, the Company had funded approximately $28.1 million in project costs. The core and shell portion of this redevelopment was completed and the first new tenant took occupancy in the first quarter of 2021, with the construction of tenant spaces to be completed throughout the remainder of 2021.

In April 2021, the Company began the redevelopment of a medical office building in Tacoma, Washington. As of June 30, 2021, the Company had funded approximately $1.3 million in project costs. The redevelopment includes interior and exterior improvements to the existing building, plus the addition of 23,000 square feet. The Company expects the tenant lease for the expansion space to commence in the second quarter of 2022.

In July 2021, the Company began the redevelopment of a medical office building in Nashville, Tennessee. The Company expects to construct a new 106,194 square foot medical office building with the initial tenant lease expected to commence in the second quarter of 2023. The redevelopment includes the demolition of an existing 81,000 square foot medical office building. In the second quarter of 2021, the Company recognized an impairment charge of $5.0 million related to the existing building.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Stockholders' equity

Stockholders' Equity

Common Stock    

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2021 and the year ended December 31, 2020:

	SIX MONTHS ENDED	TWELVE MONTHS ENDED
	JUNE 30, 2021	DECEMBER 31, 2020
Balance, beginning of period	139,487,375	134,706,154
Issuance of common stock	5,890,468	4,637,445
Nonvested share-based awards, net of withheld shares	151,729	143,776
Balance, end of period	145,529,572	139,487,375

At-The-Market Equity Offering Program

The Company has in place an at-the-market equity offering program to sell up to an aggregate of $500.0 million of the Company’s common stock from time to time. The following table details the Company's at-the-market activity, including forward transactions:

	WEIGHTED AVERAGE SALE PRICE per share		SHARES PRICED	SHARES SETTLED	SHARES REMAINING TO BE SETTLED	NET PROCEEDS in millions
Balance at December 31, 2020	$	—	—	—	1,823,259	$	—
1Q 2021	$	30.09	215,532	2,038,791	—	$	62.7
2Q 2021	$	30.99	5,835,400	3,827,971	2,007,429	$	116.1
July 2021	$	31.06	1,670,186	—	3,677,615	$	—

The 3.7 million shares remaining to be settled in forward equity arrangements are expected to be settled by July 2022, and the Company expects gross proceeds of $114.8 million, depending on the timing of settlement. Expected net proceeds are calculated by reducing the initial price by adjustments provided in the forward equity arrangements. After accounting for these settlements, the Company has approximately $58.2 million remaining available to be sold under the current sales agreements at the date of this filing.

Common Stock Dividends

During the six months ended June 30, 2021, the Company declared and paid common stock dividends totaling $0.6050 per share. On August 3, 2021, the Company declared a quarterly common stock dividend in the amount of $0.3025 per share payable on August 31, 2021 to stockholders of record on August 16, 2021.

Earnings Per Common Share

The Company uses the two-class method of computing net earnings per common shares. The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method.

During the three months ended June 30, 2021, the Company entered into forward sale agreements to sell approximately 5.8 million shares of common stock through the Company's at-the-market equity offering program. The Company considered the accounting guidance governing financial instruments and derivatives to account for these agreements and concluded that it was not a liability as it did not embody obligations to repurchase our shares of common stock nor did it embody obligations to issue a variable number of shares for which the monetary value was predominately fixed, varying with something other than the fair value of the shares, or varying inversely in relation to the shares. In addition, the Company evaluated whether the agreements met the derivative and hedging guidance scope exception to be accounted for as an equity instrument and concluded that the agreements can be classified as equity.

The Company used the treasury method to determine the dilution from the forward equity agreements during the period of time prior to settlement. The number of weighted-average shares outstanding used in the computation of earnings per common share for the three and six months ended June 30, 2021 included the effect from the assumed issuance of 2.0 million shares of common stock pursuant to the settlement of the forward equity agreements at the contractual price, less the assumed repurchase of the common stock at the average market price using the proceeds, adjusted for costs to borrow. For the three and six months ended June 30, 2021, no weighted-average incremental shares of common stock were excluded from the computation of weighted-average common shares outstanding - diluted.

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020.

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
Dollars in thousands, except per share data	2021		2020		2021		2020
Weighted average common shares outstanding
Weighted average common shares outstanding	143,700,491		135,367,081		142,142,577		135,062,708
Non-vested shares	(1,783,278)		(1,733,435)		(1,788,410)		(1,727,762)
Weighted average common shares outstanding - basic	141,917,213		133,633,646		140,354,167		133,334,946
Weighted average common shares outstanding - basic	141,917,213		133,633,646		140,354,167		133,334,946
Dilutive effect of forward equity shares	61,064		—		27,896		2,149
Dilutive effect of employee stock purchase plan	70,711		62,266		85,714		83,217
Weighted average common shares outstanding - diluted	142,048,988		133,695,912		140,467,777		133,420,312
Net Income	$	23,096	$	75,513	$	47,118	$	79,828
Dividends paid on nonvested share-based awards	(539)		(521)		(1,080)		(1,039)
Net income applicable to common stockholders	$	22,557	$	74,992	$	46,038	$	78,789
Basic earnings per common share - net income	$	0.16	$	0.56	$	0.33	$	0.59
Diluted earnings per common share - net income	$	0.16	$	0.56	$	0.33	$	0.59

Incentive Plans

During the six months ended June 30, 2021, the Company made the following stock awards:

•On January 1, 2021, the Company granted non-vested stock awards to certain officers with a grant date fair value of $0.6 million, which consisted of an aggregate 21,396 non-vested shares through its salary deferral program.

•On February 10, 2021, the Company granted non-vested stock awards to its four named executive officers, five senior vice presidents, and five first vice presidents with a grant date fair value totaling $3.8 million, which consisted of an aggregate 124,648 non-vested shares, with a five-year vesting period.

•Also, on February 10, 2021, the Company granted a performance-based award to its officers, excluding the four named executive officers, five senior vice presidents, and five first vice presidents totaling $0.6 million, which consisted of an aggregate 19,679 non-vested shares.

•On May 11, 2021, the Company granted non-vested stock awards to its eight directors with a grant date fair value totaling $1.2 million, which consisted of an aggregate 36,682 non-vested shares, with a one-year vesting period.

•On June 21, 2021, the Company granted a non-vested stock award to an employee, which consisted of 1,296 non-vested shares as a discretionary grant.

A summary of the activity under the Company's share-based incentive plans for the three and six months ended June 30, 2021 and 2020 is included in the table below.

	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2021	2020	2021	2020
Share-based awards, beginning of period	1,786,371	1,724,761	1,766,061	1,754,066
Granted	37,978	39,493	203,701	78,837
Vested	(46,041)	(24,996)	(191,454)	(93,645)
Share-based awards, end of period	1,778,308	1,739,258	1,778,308	1,739,258

During the six months ended June 30, 2021 and 2020, the Company withheld 51,972 and 23,563 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested.

In addition to the share-based incentive plans, the Company maintains the 2000 Employee Stock Purchase Plan (the "Purchase Plan"). A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2021 and 2020 is included in the table below.

	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2021	2020	2021	2020
Outstanding and exercisable, beginning of period	415,299	370,696	341,647	332,659
Granted	—	—	253,200	212,716
Exercised	(3,012)	(2,463)	(18,977)	(14,367)
Forfeited	(22,873)	(6,514)	(42,034)	(29,495)
Expired	—	—	(144,422)	(139,794)
Outstanding and exercisable, end of period	389,414	361,719	389,414	361,719

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair value of financial instruments

Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value.

•Cash and cash equivalents - The carrying amount approximates fair value due to the short term maturity of these investments.

•Borrowings under the Unsecured Credit Facility and the Term Loans Due 2024 and 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.

•Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements.

•Interest rate swap agreements - Interest rate swap agreements are recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models that consider forward yield curves and discount rates.

The table below details the fair values and carrying values for notes and bonds payable at June 30, 2021 and December 31, 2020.

	June 30, 2021				December 31, 2020
Dollars in millions	CARRYING VALUE		FAIR VALUE		CARRYING VALUE		FAIR VALUE
Notes and bonds payable 1	$	1,614.5	$	1,615.6	$	1,602.8	$	1,645.4

1Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Business overview

Business OverviewHealthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2021, the Company had gross investments of approximately $4.7 billion in 227 real estate properties located in 24 states totaling approximately 16.3 million square feet. The Company provided leasing and property management services to approximately 13.4 million square feet nationwide. The Company owns 50% of an unconsolidated joint venture with Teachers Insurance and Annuity Association ("TIAA Joint Venture") and earns certain fees as the managing member. As of June 30, 2021, the TIAA Joint Venture owned nine real estate properties.

Basis of presentation

Basis of Presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, management believes there has been no material change in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2020. All material intercompany transactions and balances have been eliminated in consolidation.

This interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management believes that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included. In addition, the interim financial information does not necessarily represent or indicate what the operating results will be for the year ending December 31, 2021 for many reasons including, but not limited to, acquisitions, dispositions, capital financing transactions, changes in interest rates and the effects of other trends, risks and uncertainties.

Principles of consolidation

Principles of Consolidation

The Company’s Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and joint ventures and partnerships where the Company controls the operating activities. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). Accounting Standards Codification 810 broadly defines a VIE as an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company identifies the primary beneficiary of a VIE as the enterprise that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the entity. The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary. The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary. The Company performs this analysis on an ongoing basis.

For property holding entities not determined to be VIEs, the Company consolidates such entities in which it owns 100% of the equity or has a controlling financial interest evidenced by ownership of a majority voting interest. All intercompany balances and transactions are eliminated in consolidation. For entities in which the Company owns less than 100% of the equity interest, the Company consolidates the entity if it has the direct or indirect ability to control the entities’ activities based upon the terms of the respective entities’ ownership agreements.

As of June 30, 2021, the Company's unconsolidated joint venture arrangements were accounted for using the equity method of accounting as the Company exercised significant influence over but did not control these entities.

Use of estimates in the condensed consolidated financial statements

Use of Estimates in the Condensed Consolidated Financial Statements

Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results may differ from those estimates.

The Company considered the impact of COVID-19 on these assumptions and estimates used and determined that there were no material adverse impacts on the Company's results of operations and financial position at June 30, 2021. There can be no assurance that COVID-19 will not have a future material adverse impact on the financial results and business operations of the Company.

Investments in and Income from Leases - Financing Receivables, Net

Investments in Leases - Financing Receivables, Net

In accordance with Accounting Standards Codification ("ASC") 842, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option. As a result, the Company does not recognize the underlying real estate asset but instead recognizes a financial asset in accordance with ASC 310 “Receivables”. In the second quarter of 2021, the Company acquired a building in San Diego, California in a sale leaseback transaction in which the seller-lessee had a purchase option. Therefore, control was not considered to be transferred under GAAP. Accordingly, this transaction was accounted for as a financing receivable and recorded on the Condensed Consolidated Balance Sheet in the line item Investment in financing receivable, net. The Company evaluated the impact of ASC 326, "Credit Losses" to the financing receivable, and the amount calculated was determined to be immaterial and therefore not recorded.

Income from Leases and Lease Financing Receivables

The Company recognizes the related income from the financing receivable based on an imputed interest rate over the terms of the applicable lease. As a result, the interest recognized from the financing receivable will not equal the cash payments from the lease agreement.

Acquisition costs incurred in connection with entering into the financing receivable are treated as loan origination fees. These costs are classified with the financing receivable and are included in the balance of the net investment. These amounts will be recognized as a reduction to Income from investments in the financing receivable, net over the life of the lease.

Revenue from contract with customers (topic 606)

Revenue from Contracts with Customers (Topic 606)

The Company recognizes certain revenue under the core principle of Topic 606. This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Lease revenue is not within the scope of Topic 606. To achieve the core principle, the Company applies the five step model specified in the guidance.

Revenue that is accounted for under Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Income in the Other operating line item. This line item includes parking income, management fee income and other miscellaneous income. Below is a detail of the amounts by category:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
in thousands	2021		2020		2021		2020
Type of Revenue
Parking income	$	1,880	$	1,227	$	3,538	$	3,278
Management fee income	419		69		658		147
Miscellaneous	128		36		182		71
	$	2,427	$	1,332	$	4,378	$	3,496

The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied. The performance obligations that are identified for each of these items are satisfied over time, and the Company recognizes revenue monthly based on this principle.

New accounting pronouncements

New Accounting Pronouncements

Accounting Standards Update No. 2020-04

On March 12, 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Disaggregation of revenue

Below is a detail of the amounts by category:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
in thousands	2021		2020		2021		2020
Type of Revenue
Parking income	$	1,880	$	1,227	$	3,538	$	3,278
Management fee income	419		69		658		147
Miscellaneous	128		36		182		71
	$	2,427	$	1,332	$	4,378	$	3,496

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Real Estate Investments (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Summary of acquisitions

The following table details the Company's acquisitions for the six months ended June 30, 2021:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE
San Diego, CA 3	1/7/21	$	17,150	$	17,182	$	17,182	$	—	22,461
Dallas, TX 4	2/1/21	22,515		22,299		22,641		(342)		121,709
Atlanta, GA 4	2/17/21	9,800		10,027		10,073		(46)		44,567
Washington, D.C.	3/3/21	12,750		12,709		12,658		51		26,496
Houston, TX	5/14/21	13,500		12,986		13,379		(393)		45,393
San Diego, CA 5	5/28/21	102,650		103,984		104,629		(645)		160,394
Greensboro, NC	6/28/21	9,390		9,475		10,047		(572)		25,168
Baltimore, MD	6/29/21	14,600		14,357		14,437		(80)		33,316
Total real estate acquisitions		$	202,355	$	203,019	$	205,046	$	(2,027)	479,504

1Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

2Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

3Represents a single-tenant property.

4Includes two properties.

5The Company accounted for this transaction as a financing receivable.

Subsequent to June 30, 2021, the Company acquired the following properties:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE
Denver, CO 1	7/16/21	$	70,426	259,555
Greensboro, NC 2	7/19/21	6,400		18,119
Colorado Springs, CO	7/27/21	33,400		69,526
		$	110,226	347,200

1Includes three properties.

2Represents a single-tenant property.

Schedule of joint venture transactions

The following table details the TIAA Joint Venture acquisition for the six months ended June 30, 2021:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 1		REAL ESTATE		OTHER 2		SQUARE FOOTAGE	OWNERSHIP %
Denver, CO	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359	50	%
Colorado Springs, CO	4/1/21	7,200		7,288		7,347		(59)		27,510	50	%
Los Angeles, CA	4/8/21	31,335		30,179		30,642		(463)		57,573	50	%
San Antonio, TX	4/30/21	13,600		13,412		13,656		(244)		45,000	50	%
Los Angeles, CA	5/10/21	24,600		24,259		24,147		112		73,078	50	%
Total real estate acquisitions		$	91,110	$	89,194	$	90,342	$	(1,148)	262,520

1Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

2Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

Subsequent to June 30, 2021, the TIAA Joint Venture acquired the following properties:

Dollars in thousands	DATE ACQUIRED	PURCHASE PRICE		SQUARE FOOTAGE	OWNERSHIP %
Colorado Springs, CO 1	7/27/21	$	9,133	23,956	50	%

1Includes purchase of adjoining 3.0 acre land parcel.

Schedule of equity method investments

The Company's investment in and loss recognized for the three and six months ended June 30, 2021 and 2020 related to its joint ventures accounted for under the equity method are shown in the table below:

	THREE MONTHS ENDED June 30,				SIX MONTHS ENDED June 30,
Dollars in thousands	2021		2020		2021		2020
Investments in unconsolidated joint ventures, beginning of period 1	$	83,943	$	8,000	$	73,137	$	8,130
New investments during the period	34,138		—		45,018		—
Equity loss recognized during the period 1	(146)		(116)		(220)		(127)
Owner distributions	—		(65)		—		(184)
Investments in unconsolidated joint ventures, end of period 1	$	117,935	$	7,819	$	117,935	$	7,819

1In addition to the TIAA Joint Venture, the Company also has a 55% and 27% ownership interest, respectively, in two limited liability companies that each own a parking garage in Atlanta, Georgia.

Real estate dispositions

The following table details the Company's dispositions for the six months ended June 30, 2021:

Dollars in millions	DATE DISPOSED	SALE PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER (INCLUDING RECEIVABLES) 1		GAIN/(IMPAIRMENT)		SQUARE FOOTAGE
Los Angeles, CA 2	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA 3	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA 3	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 3,4	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Total dispositions		$	91,550	$	(1,421)	$	90,129	$	47,049	$	4,105	$	38,975	356,686

1Includes straight-line rent receivables, leasing commissions and lease inducements.

2Includes two properties sold to a single purchaser in two transactions which occurred on March 5 and March 11, 2021.

3Previously classified as held for sale.

4Includes three properties.

Schedule of assets and liabilities held for sale

The table below reflects the assets and liabilities of the properties classified as held for sale as of June 30, 2021 and December 31, 2020:

(Dollars in thousands)	June 30, 2021		December 31, 2020
Balance Sheet data:
Land	$	1,664	$	1,664
Building, improvements and lease intangibles	27,466		27,443
Personal property	39		39
	29,169		29,146
Accumulated depreciation	(10,444)		(10,455)
Real estate assets held for sale, net	18,725		18,691
Other assets, net	2,340		1,955
Assets held for sale, net	$	21,065	$	20,646
Accounts payable and accrued liabilities	$	622	$	533
Other liabilities	320		683
Liabilities of assets held for sale	$	942	$	1,216

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Future Minimum Operating Lease Payments Receivable

Future lease payments under the non-cancelable operating leases, excluding any reimbursements, as of June 30, 2021 were as follows:

In thousands	OPERATING
2021	$	197,162
2022	364,748
2023	316,864
2024	249,638
2025	199,827
2026 and thereafter	553,214
	$	1,881,453

Future Minimum Operating Lease Payments

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2021 were as follows:

In thousands	OPERATING		FINANCING
2021	$	2,049	$	290
2022	4,932		783
2023	4,971		793
2024	5,027		815
2025	5,068		826
2026 and thereafter	303,574		87,983
Total undiscounted lease payments	325,621		91,490
Discount	(233,511)		(72,842)
Lease liabilities	$	92,110	$	18,648

Future Minimum Financing Lease Payments

The Company’s future lease payments (primarily for its 62 non-prepaid ground leases) as of June 30, 2021 were as follows:

In thousands	OPERATING		FINANCING
2021	$	2,049	$	290
2022	4,932		783
2023	4,971		793
2024	5,027		815
2025	5,068		826
2026 and thereafter	303,574		87,983
Total undiscounted lease payments	325,621		91,490
Discount	(233,511)		(72,842)
Lease liabilities	$	92,110	$	18,648

Lease Cost

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2021 and 2020:

	THREE MONTHS ENDED June 30,						SIX MONTHS ENDED June 30,
In thousands	2021			2020			2021		2020
Operating lease cost
Operating lease expense	$	1,182		$	1,175		$	2,360	$	2,349
Variable lease expense	972			804			1,868		1,604
Finance lease cost
Amortization of right-of-use assets	88			78			176		148
Interest on lease liabilities	247			240			493		477
Total lease expense	$	2,489		$	2,297		$	4,897	$	4,578
Other information
Operating cash flows outflows related to operating leases	$	2,587		$	1,416		$	4,431	$	3,972
Financing cash flows outflows related to financing leases	$	321		$	2,847		$	683	$	3,168
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	7,212		$	—	$	7,212
Weighted-average remaining lease term (excluding renewal options) - operating leases	48.1			49.1
Weighted-average remaining lease term (excluding renewal options) - finance leases	64.5			65.0
Weighted-average discount rate - operating leases	5.7		%	5.7		%
Weighted-average discount rate - finance leases	5.4		%	5.4		%

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Notes and Bonds Payable (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of debt

The table below details the Company’s notes and bonds payable. 

	MATURITY DATES	BALANCE AS OF				EFFECTIVE INTEREST RATE as of 6/30/2021
Dollars in thousands		6/30/2021		12/31/2020
$700 million Unsecured Credit Facility	5/23	$	13,000	$	—	1.00	%
$200 million Unsecured Term Loan due 2024, net of issuance costs 1	5/24	199,348		199,236		1.95	%
$150 million Unsecured Term Loan due 2026, net of issuance costs 2	6/26	149,306		149,479		2.48	%
Senior Notes due 2025, net of discount and issuance costs 3	5/25	248,906		248,776		4.08	%
Senior Notes due 2028, net of discount and issuance costs	1/28	296,365		296,123		3.84	%
Senior Notes due 2030, net of discount and issuance costs 4	3/30	296,640		296,468		2.71	%
Senior Notes due 2031, net of discount and issuance costs	3/31	295,149		294,924		2.24	%
Mortgage notes payable, net of discounts and issuance costs and including premiums	11/22-4/27	115,765		117,763		4.07	%
		$	1,614,479	$	1,602,769

1The effective interest rate includes the impact of interest rate swaps on $75.0 million at a weighted average rate of 2.37% (plus the applicable margin rate, currently 100 basis points).

2The effective interest rate includes the impact of interest rate swaps on $100.0 million at a weighted average rate of 2.23% (plus the applicable margin rate, currently 95 basis points).

3The effective interest rate includes the impact of the $1.7 million settlement of forward-starting interest rate swaps that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

4The effective interest rate includes the impact of the $4.3 million settlement of forward interest rate hedges that is included in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets.

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of cash flow hedges included in accumulated other comprehensive income (loss)

As of June 30, 2021, the Company had eight outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

DERIVATIVE INSTRUMENT	NUMBER OF INSTRUMENTS	NOTIONAL AMOUNT in millions
Interest rate swaps	8	$175.0

The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2021 and 2020 related to the Company's outstanding interest rate swaps.

	(GAIN) LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended June 30,					LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended June 30,
In thousands	2021		2020			2021		2020
Interest rate swaps	$	807	$	1,455	Interest expense	$	965	$	789
Settled treasury hedges	—		—		Interest expense	107		107
Settled interest rate swaps	—		—		Interest expense	42		42
	$	807	$	1,455	Total interest expense	$	1,114	$	938

	(GAIN) LOSS RECOGNIZED IN AOCI ON DERIVATIVE six months ended June 30,					LOSS RECLASSIFIED FROM AOCI INTO INCOME six months ended June 30,
In thousands	2021		2020			2021		2020
Interest rate swaps	$	(2,043)	$	11,119	Interest expense	$	1,912	$	1,061
Settled treasury hedges	—		4,267		Interest expense	213		122
Settled interest rate swaps	—		—		Interest expense	84		84
	$	(2,043)	$	15,386	Total interest expense	$	2,209	$	1,267

Schedule of derivative instruments in statement of financial position, fair value

The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of June 30, 2021.

	BALANCE AT JUNE 30, 2021
In thousands	BALANCE SHEET LOCATION	FAIR VALUE
Derivatives designated as hedging instruments
Interest rate swaps	Other liabilities	$	9,219
Total derivatives designated as hedging instruments		$	9,219

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Reconciliation of Common Stock Outstanding

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2021 and the year ended December 31, 2020:

	SIX MONTHS ENDED	TWELVE MONTHS ENDED
	JUNE 30, 2021	DECEMBER 31, 2020
Balance, beginning of period	139,487,375	134,706,154
Issuance of common stock	5,890,468	4,637,445
Nonvested share-based awards, net of withheld shares	151,729	143,776
Balance, end of period	145,529,572	139,487,375

At-the-market activity

The following table details the Company's at-the-market activity, including forward transactions:

	WEIGHTED AVERAGE SALE PRICE per share		SHARES PRICED	SHARES SETTLED	SHARES REMAINING TO BE SETTLED	NET PROCEEDS in millions
Balance at December 31, 2020	$	—	—	—	1,823,259	$	—
1Q 2021	$	30.09	215,532	2,038,791	—	$	62.7
2Q 2021	$	30.99	5,835,400	3,827,971	2,007,429	$	116.1
July 2021	$	31.06	1,670,186	—	3,677,615	$	—

Earnings (loss) per share

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020.

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
Dollars in thousands, except per share data	2021		2020		2021		2020
Weighted average common shares outstanding
Weighted average common shares outstanding	143,700,491		135,367,081		142,142,577		135,062,708
Non-vested shares	(1,783,278)		(1,733,435)		(1,788,410)		(1,727,762)
Weighted average common shares outstanding - basic	141,917,213		133,633,646		140,354,167		133,334,946
Weighted average common shares outstanding - basic	141,917,213		133,633,646		140,354,167		133,334,946
Dilutive effect of forward equity shares	61,064		—		27,896		2,149
Dilutive effect of employee stock purchase plan	70,711		62,266		85,714		83,217
Weighted average common shares outstanding - diluted	142,048,988		133,695,912		140,467,777		133,420,312
Net Income	$	23,096	$	75,513	$	47,118	$	79,828
Dividends paid on nonvested share-based awards	(539)		(521)		(1,080)		(1,039)
Net income applicable to common stockholders	$	22,557	$	74,992	$	46,038	$	78,789
Basic earnings per common share - net income	$	0.16	$	0.56	$	0.33	$	0.59
Diluted earnings per common share - net income	$	0.16	$	0.56	$	0.33	$	0.59

Summary of the activity under the incentive plan

A summary of the activity under the Company's share-based incentive plans for the three and six months ended June 30, 2021 and 2020 is included in the table below.

	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2021	2020	2021	2020
Share-based awards, beginning of period	1,786,371	1,724,761	1,766,061	1,754,066
Granted	37,978	39,493	203,701	78,837
Vested	(46,041)	(24,996)	(191,454)	(93,645)
Share-based awards, end of period	1,778,308	1,739,258	1,778,308	1,739,258

Summary of employee stock purchase plan activity

A summary of the activity under the Purchase Plan for the three and six months ended June 30, 2021 and 2020 is included in the table below.

	THREE MONTHS ENDED JUNE 30,		SIX MONTHS ENDED JUNE 30,
	2021	2020	2021	2020
Outstanding and exercisable, beginning of period	415,299	370,696	341,647	332,659
Granted	—	—	253,200	212,716
Exercised	(3,012)	(2,463)	(18,977)	(14,367)
Forfeited	(22,873)	(6,514)	(42,034)	(29,495)
Expired	—	—	(144,422)	(139,794)
Outstanding and exercisable, end of period	389,414	361,719	389,414	361,719

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair value and carrying values for notes and bonds payable, mortgage notes receivable, and notes receivable

The table below details the fair values and carrying values for notes and bonds payable at June 30, 2021 and December 31, 2020.

	June 30, 2021				December 31, 2020
Dollars in millions	CARRYING VALUE		FAIR VALUE		CARRYING VALUE		FAIR VALUE
Notes and bonds payable 1	$	1,614.5	$	1,615.6	$	1,602.8	$	1,645.4

1Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

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Summary of Significant Accounting Policies (Details) ft² in Millions, $ in Billions	Jun. 30, 2021 USD ($) ft² building property state
Business Overview:
Gross investment amount, total | $	$ 4.7
Number of real estate properties | property	227
Number of states that the company owns real estate in, whole units | state	24
Square footage of owned real estate properties	16.3
Approximate square feet for which Nationwide property management services provided by company	13.4
Joint venture ownership (percent)	50.00%
Number of buildings owned by joint venture with TIAA | building	9
Equity ownership for consolidation (percent)	100.00%

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Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Type of Revenue	$ 2,427	$ 1,332	$ 4,378	$ 3,496
Parking income
Disaggregation of Revenue [Line Items]
Type of Revenue	1,880	1,227	3,538	3,278
Management fee income
Disaggregation of Revenue [Line Items]
Type of Revenue	419	69	658	147
Miscellaneous
Disaggregation of Revenue [Line Items]
Type of Revenue	$ 128	$ 36	$ 182	$ 71

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Real Estate Investments - Acquisitions (Details) - Total real estate acquisitions $ in Thousands													3 Months Ended	6 Months Ended
	Aug. 04, 2021 USD ($) ft²	Jul. 27, 2021 USD ($) ft²	Jul. 19, 2021 USD ($) ft²	Jul. 16, 2021 USD ($) ft² property	Jun. 29, 2021 USD ($) ft²	Jun. 28, 2021 USD ($) ft²	May 28, 2021 USD ($) ft²	May 14, 2021 USD ($) ft²	Mar. 03, 2021 USD ($) ft²	Feb. 17, 2021 USD ($) ft²	Feb. 01, 2021 USD ($) ft²	Jan. 17, 2021 USD ($) ft²	Jun. 30, 2021 USD ($) ft² property	Jun. 30, 2021 USD ($) ft²
Business Acquisition [Line Items]
Purchase price														$ 202,355
Cash consideration														203,019
Real estate													$ 205,046	205,046
Other													$ (2,027)	$ (2,027)
Square footage | ft²													479,504	479,504
Medical office building
Business Acquisition [Line Items]
Number of properties acquired | property													2
Medical office building | Subsequent event
Business Acquisition [Line Items]
Square footage | ft²	347,200
Medical office building | San Diego, CA
Business Acquisition [Line Items]
Purchase price							$ 102,650					$ 17,150
Cash consideration							103,984					17,182
Real estate							104,629					17,182
Other							$ (645)					$ 0
Square footage | ft²							160,394					22,461
Medical office building | Dallas, TX
Business Acquisition [Line Items]
Purchase price											$ 22,515
Cash consideration											22,299
Real estate											22,641
Other											$ (342)
Square footage | ft²											121,709
Medical office building | Atlanta, GA
Business Acquisition [Line Items]
Purchase price										$ 9,800
Cash consideration										10,027
Real estate										10,073
Other										$ (46)
Square footage | ft²										44,567
Medical office building | Washington, D.C.
Business Acquisition [Line Items]
Purchase price									$ 12,750
Cash consideration									12,709
Real estate									12,658
Other									$ 51
Square footage | ft²									26,496
Medical office building | Houston, TX
Business Acquisition [Line Items]
Purchase price								$ 13,500
Cash consideration								12,986
Real estate								13,379
Other								$ (393)
Square footage | ft²								45,393
Medical office building | Greensboro, NC
Business Acquisition [Line Items]
Purchase price						$ 9,390
Cash consideration						9,475
Real estate						10,047
Other						$ (572)
Square footage | ft²						25,168
Medical office building | Greensboro, NC | Subsequent event
Business Acquisition [Line Items]
Purchase price			$ 6,400
Square footage | ft²			18,119
Medical office building | Baltimore, MD
Business Acquisition [Line Items]
Purchase price					$ 14,600
Cash consideration					14,357
Real estate					14,437
Other					$ (80)
Square footage | ft²					33,316
Medical office building | Denver, CO | Subsequent event
Business Acquisition [Line Items]
Purchase price				$ 70,426
Square footage | ft²				259,555
Number of properties acquired | property				3
Medical office building | Colorado Springs, CO | Subsequent event
Business Acquisition [Line Items]
Purchase price	$ 110,226	$ 33,400
Square footage | ft²		69,526

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Real Estate Investments - Unconsolidated Joint Venture Acquisitions (Details) $ in Thousands						3 Months Ended		6 Months Ended
	May 10, 2021 USD ($) ft²	Apr. 30, 2021 USD ($) ft²	Apr. 08, 2021 USD ($) ft²	Apr. 01, 2021 USD ($) ft²	Mar. 30, 2021 USD ($) ft²	Jun. 30, 2021 USD ($) ft²	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) ft² property	Jun. 30, 2020 USD ($)	Jul. 27, 2021 USD ($) a ft²
Real Estate [Line Items]
Joint venture ownership (percent)						50.00%		50.00%
Equity Method Investments [Roll Forward]
Investments in unconsolidated joint ventures, beginning of period								$ 73,137
Equity loss recognized during the period						$ (146)	$ (116)	(220)	$ (127)
Owner distributions						0	(65)	0	(184)
Net LLC investments at the end of the period						117,935		117,935
Medical office building
Real Estate [Line Items]
Purchase Price						91,110		91,110
Cash Consideration								89,194
Real Estate						90,342		90,342
Other						$ (1,148)		$ (1,148)
Square Footage | ft²						262,520		262,520
Medical office building | Denver, CO
Real Estate [Line Items]
Purchase Price					$ 14,375
Cash Consideration					14,056
Real Estate					14,550
Other					$ (494)
Square Footage | ft²					59,359
Joint venture ownership (percent)					50.00%
Medical office building | Colorado Springs, CO
Real Estate [Line Items]
Purchase Price				$ 7,200
Cash Consideration				7,288
Real Estate				7,347
Other				$ (59)
Square Footage | ft²				27,510
Joint venture ownership (percent)				50.00%
Medical office building | Colorado Springs, CO | Subsequent event
Real Estate [Line Items]
Purchase Price										$ 9,133
Square Footage | ft²										23,956
Joint venture ownership (percent)										50.00%
Joint venture, adjacent land parcel (acres) | a										3.0
Medical office building | Los Angeles, CA
Real Estate [Line Items]
Purchase Price	$ 24,600		$ 31,335
Cash Consideration	24,259		30,179
Real Estate	24,147		30,642
Other	$ 112		$ (463)
Square Footage | ft²	73,078		57,573
Joint venture ownership (percent)	50.00%		50.00%
Medical office building | San Antonio, TX
Real Estate [Line Items]
Purchase Price		$ 13,600
Cash Consideration		13,412
Real Estate		13,656
Other		$ (244)
Square Footage | ft²		45,000
Joint venture ownership (percent)		50.00%
Parking Garages
Equity Method Investments [Roll Forward]
Investments in unconsolidated joint ventures, beginning of period				$ 83,943		$ 83,943	8,000	$ 73,137	8,130
New investments during the period						34,138	0	45,018	0
Equity loss recognized during the period						(146)	(116)	(220)	(127)
Net LLC investments at the end of the period						$ 117,935	$ 7,819	$ 117,935	$ 7,819
Parking Garages | Atlanta, GA
Real Estate [Line Items]
Number of limited liability companies | property								2
Parking Garages | Atlanta, GA | Limited Liability Company One
Real Estate [Line Items]
Ownership interest in LLC (percent)								55.00%
Parking Garages | Atlanta, GA | Limited Liability Company Two
Real Estate [Line Items]
Ownership interest in LLC (percent)								27.00%

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Real Estate Investments - Dispositions (Details) - Real Estate Dispositions $ in Thousands						6 Months Ended
	May 19, 2021 USD ($) ft²	May 18, 2021 USD ($) ft² property	Apr. 12, 2021 USD ($) ft²	Mar. 11, 2021 USD ($) ft² transaction	Mar. 11, 2021 USD ($) ft² property	Jun. 30, 2021 USD ($) ft²
Real Estate Dispositions [Line Items]
SALE PRICE						$ 91,550
CLOSING ADJUSTMENTS						(1,421)
NET PROCEEDS						90,129
NET REAL ESTATE INVESTMENT						47,049
Other (including receivables)						4,105
GAIN/(IMPAIRMENT)						$ 38,975
SQUARE FOOTAGE | ft²						356,686
Los Angeles, CA
Real Estate Dispositions [Line Items]
SALE PRICE				$ 26,000	$ 26,000
CLOSING ADJUSTMENTS				(555)	(555)
NET PROCEEDS					25,445
NET REAL ESTATE INVESTMENT				6,046	6,046
Other (including receivables)				$ 509	509
GAIN/(IMPAIRMENT)					$ 18,890
SQUARE FOOTAGE | ft²				73,906	73,906
Number of properties sold | property					2
Number of transactions | transaction				2
Atlanta, GA
Real Estate Dispositions [Line Items]
SALE PRICE			$ 8,050
CLOSING ADJUSTMENTS			(272)
NET PROCEEDS			7,778
NET REAL ESTATE INVESTMENT			5,675
Other (including receivables)			151
GAIN/(IMPAIRMENT)			$ 1,952
SQUARE FOOTAGE | ft²			19,732
Richmond, VA
Real Estate Dispositions [Line Items]
SALE PRICE		$ 52,000
CLOSING ADJUSTMENTS		(314)
NET PROCEEDS		51,686
NET REAL ESTATE INVESTMENT		29,414
Other (including receivables)		3,270
GAIN/(IMPAIRMENT)		$ 19,002
SQUARE FOOTAGE | ft²		142,856
Gadsden, AL
Real Estate Dispositions [Line Items]
SALE PRICE	$ 5,500
CLOSING ADJUSTMENTS	(280)
NET PROCEEDS	5,220
NET REAL ESTATE INVESTMENT	5,914
Other (including receivables)	175
GAIN/(IMPAIRMENT)	$ (869)
SQUARE FOOTAGE | ft²	120,192
Number of transactions | property		3

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Real Estate Investments - Assets Held for Sale (Details) $ in Thousands	Jul. 09, 2021 USD ($) property	Jun. 30, 2021 USD ($) property	Dec. 31, 2020 USD ($) property
Balance Sheet Related Disclosures [Abstract]
Land		$ 375,374	$ 362,695
Building, improvements and lease intangibles		4,249,352	4,220,297
Personal property		11,589	11,195
Total real estate properties		4,769,330	4,621,413
Accumulated depreciation		(1,285,251)	(1,239,224)
Total real estate properties, net		3,484,079	3,382,189
Assets held for sale, net		21,065	20,646
Liabilities of assets held for sale		942	1,216
Disposal Group, Held-for-sale, Not Discontinued Operations
Balance Sheet Related Disclosures [Abstract]
Land		1,664	1,664
Building, improvements and lease intangibles		27,466	27,443
Personal property		39	39
Total real estate properties		29,169	29,146
Accumulated depreciation		(10,444)	(10,455)
Total real estate properties, net		18,725	18,691
Other assets, net		2,340	1,955
Assets held for sale, net		21,065	20,646
Accounts payable and accrued liabilities		622	533
Other liabilities		320	683
Liabilities of assets held for sale		942	$ 1,216
Real Estate Dispositions
Long Lived Assets Held-for-sale [Line Items]
Disposition sales price		91,550
Net real estate investment		$ 47,049
Real Estate Dispositions | Subsequent event | Dallas, TX
Long Lived Assets Held-for-sale [Line Items]
Number of properties sold | property	4
Disposition sales price	$ 23,000
Net real estate investment	$ 18,700
Asset Held-for-sale
Long Lived Assets Held-for-sale [Line Items]
Number of properties held for sale | property		4	4

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Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Rental income	$ 128,486	$ 122,358	$ 256,874	$ 245,001

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Leases - Lessor Accounting (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Future Operating Lease Payments Receivable [Abstract]
2021	$ 197,162
2022	364,748
2023	316,864
2024	249,638
2025	199,827
2026 and thereafter	553,214
Total	$ 1,881,453

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Leases - Ground Leases (Details) ft² in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) lease property	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) ft² lease property	Jun. 30, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Number of properties subject to ground leases | property	105		105
Square feet subject to ground leases | ft²			8.8
Number of prepaid ground leases			43
Amortization of prepaid rent | $	$ 0.1	$ 0.2	$ 0.3	$ 0.3
Number of non-prepaid ground leases	62		62
Minimum
Lessee, Lease, Description [Line Items]
Ground lease, initial term	40 years		40 years
Maximum
Lessee, Lease, Description [Line Items]
Ground lease, initial term	99 years		99 years

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Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
OPERATING
2021	$ 2,049
2022	4,932
2023	4,971
2024	5,027
2025	5,068
2026 and thereafter	303,574
Total undiscounted lease payments	325,621
Discount	(233,511)
Lease liabilities	92,110	$ 92,273
FINANCING
2021	290
2022	783
2023	793
2024	815
2025	826
2026 and thereafter	87,983
Total undiscounted lease payments	91,490
Discount	(72,842)
Lease liabilities	$ 18,648	$ 18,837

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Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating lease cost
Operating lease expense	$ 1,182	$ 1,175	$ 2,360	$ 2,349
Variable lease expense	972	804	1,868	1,604
Finance lease cost
Amortization of right-of-use assets	88	78	176	148
Interest on lease liabilities	247	240	493	477
Total lease expense	2,489	2,297	4,897	4,578
Other information
Operating cash flows outflows related to operating leases	2,587	1,416	4,431	3,972
Financing cash flows outflows related to financing leases	321	2,847	683	3,168
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 0	$ 7,212	$ 0	$ 7,212
Weighted-average remaining lease term (excluding renewal options) - operating leases	48 years 1 month 6 days	49 years 1 month 6 days	48 years 1 month 6 days	49 years 1 month 6 days
Weighted-average remaining lease term (excluding renewal options) - finance leases	64 years 6 months	65 years	64 years 6 months	65 years
Weighted-average discount rate - operating leases	5.70%	5.70%	5.70%	5.70%
Weighted-average discount rate - finance leases	5.40%	5.40%	5.40%	5.40%

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Notes and Bonds Payable (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jun. 01, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	May 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Notes and bonds payable		$ 1,614,479,000		$ 1,614,479,000			$ 1,602,769,000
Impact of settlement of forward-starting interest rate swap		807,000	$ 1,455,000	(2,043,000)	$ 15,386,000
Line of credit | $700 million Unsecured Credit Facility
Debt Instrument [Line Items]
Notes and bonds payable		$ 13,000,000		$ 13,000,000			0
Effective interest rate		1.00%		1.00%
Credit facility		$ 700,000,000		$ 700,000,000
Medium-term notes | $200 million Unsecured Term Loan due 2024, net of issuance costs
Debt Instrument [Line Items]
Notes and bonds payable		$ 199,348,000		$ 199,348,000			199,236,000
Effective interest rate		1.95%		1.95%
Term-loan facility		$ 200,000,000		$ 200,000,000
Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs
Debt Instrument [Line Items]
Notes and bonds payable		$ 149,306,000		$ 149,306,000			149,479,000
Effective interest rate		2.48%		2.48%
Term-loan facility		$ 150,000,000		$ 150,000,000		$ 150,000,000
Payment of up front fees	$ 500,000
Capitalized up front fees	$ 200,000
Debt administration fee		$ 300,000
Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Effective interest rate		0.95%		0.95%		1.60%
Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | Minimum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Effective interest rate	0.80%					1.45%
Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs | Maximum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Effective interest rate	1.60%					2.40%
Senior notes | Senior Notes due 2025, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable		$ 248,906,000		$ 248,906,000			248,776,000
Effective interest rate		4.08%		4.08%
Senior notes | Senior Notes due 2028, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable		$ 296,365,000		$ 296,365,000			296,123,000
Effective interest rate		3.84%		3.84%
Senior notes | Senior notes due 2030, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable		$ 296,640,000		$ 296,640,000			296,468,000
Effective interest rate		2.71%		2.71%
Senior notes | Senior Notes due 2031, net of discount and issuance costs
Debt Instrument [Line Items]
Notes and bonds payable		$ 295,149,000		$ 295,149,000			294,924,000
Effective interest rate		2.24%		2.24%
Mortgages | Mortgage notes payable, net of discounts and issuance costs and including premiums
Debt Instrument [Line Items]
Notes and bonds payable		$ 115,765,000		$ 115,765,000			$ 117,763,000
Effective interest rate		4.07%		4.07%
Interest rate swaps
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap		$ 807,000	1,455,000	$ 2,043,000	(11,119,000)
Interest rate swaps | Medium-term notes | $200 million Unsecured Term Loan due 2024, net of issuance costs
Debt Instrument [Line Items]
Notional amount		$ 75,000,000.0		$ 75,000,000.0
Weighted average interest rate (percent)		2.37%		2.37%
Basis spread on variable rate				100.00%
Interest rate swaps | Medium-term notes | $150 million Unsecured Term Loan due 2026, net of issuance costs
Debt Instrument [Line Items]
Notional amount		$ 100,000,000.0		$ 100,000,000.0
Weighted average interest rate (percent)		2.23%		2.23%
Basis spread on variable rate				95.00%
Interest rate swaps | Senior notes | Senior Notes due 2025, net of discount and issuance costs
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap				$ 1,700,000
Treasury lock
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap		$ 0	$ 0	0	$ (4,267,000)
Treasury lock | Senior notes | Senior Notes due 2025, net of discount and issuance costs
Debt Instrument [Line Items]
Impact of settlement of forward-starting interest rate swap				$ 4,300,000

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Derivative Financial Instruments - Derivative Instruments Designated as Cash Flow Hedges (Details) $ in Millions	Jun. 30, 2021 USD ($) swapAgreement
Derivative [Line Items]
Derivatives in net liability position	$ 9.6
Active Interest Rate Swap
Derivative [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified to interest expense during the next 12 months	$ 4.4
Cash flow hedging | Designated as hedging instrument | Interest rate swaps
Derivative [Line Items]
Number of instruments | swapAgreement	8
Notional amount	$ 175.0

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Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - Designated as hedging instrument - Interest rate swaps $ in Thousands	Jun. 30, 2021 USD ($)
Derivative [Line Items]
Liability derivatives	$ 9,219
Other liabilities
Derivative [Line Items]
Liability derivatives	$ 9,219

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Derivative Financial Instruments - Effect of Cash Flow Hedging on AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative [Line Items]
Loss recognized in AOCI on derivative	$ 807	$ 1,455	$ (2,043)	$ 15,386
(Gain) loss reclassified from AOCI into income	(1,114)	(938)	(2,209)	(1,267)
Interest rate swaps
Derivative [Line Items]
Loss recognized in AOCI on derivative	807	1,455	(2,043)	11,119
Settled treasury hedges
Derivative [Line Items]
Loss recognized in AOCI on derivative	0	0	0	4,267
Interest rate swaps
Derivative [Line Items]
Loss recognized in AOCI on derivative	0	0	0	0
Total interest expense
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	1,114	938	2,209	1,267
Total interest expense | Interest rate swaps
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	965	789	1,912	1,061
Total interest expense | Settled treasury hedges
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	107	107	213	122
Total interest expense | Interest rate swaps
Derivative [Line Items]
(Gain) loss reclassified from AOCI into income	$ 42	$ 42	$ 84	$ 84

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Commitments and Contingencies - Construction Activity (Details) $ in Millions	3 Months Ended
	Jun. 30, 2021 USD ($) ft²	Jul. 31, 2021 ft²	Apr. 30, 2021 ft²
Other Commitments [Line Items]
Approximate square feet	16,300,000
Medical office building | Dallas, Texas
Other Commitments [Line Items]
Square footage of building under redevelopment	110,860
Approximate square feet	217,114
Construction activity, total funding to date | $	$ 0.5
Medical office building | Memphis, Tennessee
Other Commitments [Line Items]
Approximate square feet	110,883
Construction activity, total funding to date | $	$ 28.1
Medical office building | Tacoma, WA
Other Commitments [Line Items]
Approximate square feet			23,000
Construction activity, total funding to date | $	1.3
Medical office building | Nashville, TN
Other Commitments [Line Items]
Impairment charge | $	$ 5.0
Medical office building | Nashville, TN | Subsequent event
Other Commitments [Line Items]
Approximate square feet		106,194
Square footage of building to be demolished		81,000

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Stockholders' Equity - Reconciliation of beginning and ending common stock outstanding (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Reconciliation of the beginning and ending common stock outstanding
Balance, beginning of period (in shares)	139,487,000
Balance, end of period (in shares)	145,530,000
Common Stock
Reconciliation of the beginning and ending common stock outstanding
Balance, beginning of period (in shares)	139,487,375	134,706,154
Issuance of common stock (in shares)	5,890,468	4,637,445
Nonvested share-based awards, net of withheld shares (in shares)	151,729	143,776
Balance, end of period (in shares)	145,529,572

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Stockholders' Equity - Equity Offering ProgramsEarnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Class of Stock [Line Items]
Net proceeds from issuance of common stock				$ 179,381	$ 40,169
At the market equity offering program
Class of Stock [Line Items]
Shares issued during period, price per share (in dollars per share)		$ 30.99	$ 30.09			$ 0
Priced shares sold on a forward basis (in shares)		5,835,400	215,532			0
Settlement of shares sold on a forward basis (in shares)		3,827,971	2,038,791			0
Shares sold on a forward basis remaining to be settled (in shares)		2,007,429	0	2,007,429		1,823,259
Net proceeds from issuance of common stock		$ 116,100	$ 62,700			$ 0
At the market equity offering program | Subsequent event
Class of Stock [Line Items]
Shares issued during period, price per share (in dollars per share)	$ 31.06
Priced shares sold on a forward basis (in shares)	1,670,186
Settlement of shares sold on a forward basis (in shares)	0
Shares sold on a forward basis remaining to be settled (in shares)	3,677,615
Net proceeds from issuance of common stock	$ 0

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Stockholders' Equity (Stock Transactions - Narrative) (Details)					3 Months Ended		6 Months Ended
	Aug. 03, 2021 $ / shares	Jun. 21, 2021 shares	May 11, 2021 USD ($) director shares	Feb. 10, 2021 USD ($) executiveOfficer shares	Jun. 30, 2021 USD ($) shares	Jun. 30, 2020 shares	Jun. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2020 shares	Jul. 31, 2022 USD ($) shares	Aug. 04, 2021 USD ($)	Jul. 31, 2021 shares	Mar. 31, 2021 shares	Jan. 01, 2021 USD ($)	Dec. 31, 2020 shares
Class of Stock [Line Items]
Dividends declared per common share, during the period (in dollars per share) | $ / shares							$ 0.6050
Dilutive effect of forward equity shares (in shares)					61,064	0	27,896	2,149
Weighted-average incremental shares of common stock excluded from the computation (in shares)					0		0
Salary Deferral Plan | Non-vested Stock Award
Class of Stock [Line Items]
Shares issued though the salary deferral program during period, grant-date fair value | $													$ 600,000
Shares issued during the period (in shares)							21,396
Executive Incentive Program | Non-vested Stock Award
Class of Stock [Line Items]
Granted (in dollars per share) | $				$ 3,800,000
Granted (in shares)				124,648
Award vesting period				5 years
Executive Incentive Program | Executive Officer | Non-vested Stock Award
Class of Stock [Line Items]
Number of executive officers granted awards | executiveOfficer				4
Executive Incentive Program | Senior Vice President | Non-vested Stock Award
Class of Stock [Line Items]
Number of executive officers granted awards | executiveOfficer				5
Executive Incentive Program | First Vice President | Non-vested Stock Award
Class of Stock [Line Items]
Number of executive officers granted awards | executiveOfficer				5
Stock incentive plan
Class of Stock [Line Items]
Granted (in shares)					37,978	39,493	203,701	78,837
Stock incentive plan | Performance Shares
Class of Stock [Line Items]
Shares issued during the period (in shares)				19,679
Value of performance based awards released | $				$ 600,000
Stock incentive plan | Executive Officer | Performance Shares
Class of Stock [Line Items]
Number of executive officers excluded from award grant | executiveOfficer				4
Stock incentive plan | Senior Vice President | Performance Shares
Class of Stock [Line Items]
Number of executive officers excluded from award grant | executiveOfficer				5
Stock incentive plan | First Vice President | Performance Shares
Class of Stock [Line Items]
Number of executive officers excluded from award grant | executiveOfficer				5
Stock incentive plan | Directors | Non-vested Stock Award
Class of Stock [Line Items]
Shares issued though the salary deferral program during period, grant-date fair value | $			$ 1,200,000
Shares issued during the period (in shares)			36,682
Award vesting period			1 year
Number of directors | director			8
Stock incentive plan | Employee | Non-vested Stock Award
Class of Stock [Line Items]
Shares issued during the period (in shares)		1,296
Subsequent event
Class of Stock [Line Items]
At-the-market equity offering program, remaining authorized amount, assuming forward equity contracts settle | $										$ 58,200,000
Dividends declared per common share, during the period (in dollars per share) | $ / shares	$ 0.3025
Forecast
Class of Stock [Line Items]
Shares sold of a forward basis, remaining expected proceeds | $									$ 114,800,000
At the market equity offering program
Class of Stock [Line Items]
At-the-market equity offering program, authorized amount | $					$ 500,000,000.0		$ 500,000,000.0
Shares sold on a forward basis remaining to be settled (in shares)					2,007,429		2,007,429					0		1,823,259
Shares included in forward equity sales agreement (in shares)					5,800,000
Dilutive effect of forward equity shares (in shares)					2,000,000.0		2,000,000.0
At the market equity offering program | Subsequent event
Class of Stock [Line Items]
Shares sold on a forward basis remaining to be settled (in shares)											3,677,615
At the market equity offering program | Forecast
Class of Stock [Line Items]
Shares sold on a forward basis remaining to be settled (in shares)									3,700,000

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Stockholders' Equity - Computation of basic and diluted earnings (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Weighted average Common Shares outstanding
Weighted average common shares outstanding (in shares)	143,700,491	135,367,081	142,142,577	135,062,708
Non-vested shares (in shares)	(1,783,278)	(1,733,435)	(1,788,410)	(1,727,762)
Weighted average common shares outstanding - basic (in shares)	141,917,213	133,633,646	140,354,167	133,334,946
Dilutive effect of forward equity shares (in shares)	61,064	0	27,896	2,149
Dilutive effect of employee stock purchase plan (in shares)	70,711	62,266	85,714	83,217
Weighted average common shares outstanding - diluted (in shares)	142,048,988	133,695,912	140,467,777	133,420,312
Net Income	$ 23,096	$ 75,513	$ 47,118	$ 79,828
Dividends paid on nonvested share-based awards	(539)	(521)	(1,080)	(1,039)
Net income applicable to common stockholders	$ 22,557	$ 74,992	$ 46,038	$ 78,789
Basic earnings per common share (in dollars per share)	$ 0.16	$ 0.56	$ 0.33	$ 0.59
Diluted earnings per common share (in dollars per share)	$ 0.16	$ 0.56	$ 0.33	$ 0.59

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Stockholders' Equity - Summary of activity under stock-based incentive plans (Details) - Stock incentive plan - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Summary of the activity under the incentive plans
Share-based awards, beginning of period (in shares)	1,786,371	1,724,761	1,766,061	1,754,066
Granted (in shares)	37,978	39,493	203,701	78,837
Vested (in shares)	(46,041)	(24,996)	(191,454)	(93,645)
Share-based awards, end of period (in shares)	1,778,308	1,739,258	1,778,308	1,739,258
Restricted stock
Summary of the activity under the incentive plans
Shares withheld to pay estimated withholding taxes (in shares)			51,972	23,563

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Stockholders' Equity - Summary of activity under Employee Stock Purchase Plan (Details) - Employee stock purchase plan - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Summary of the Employee Stock Purchase Plan activity
Outstanding and exercisable, beginning of period (in shares)	415,299	370,696	341,647	332,659
Granted (in shares)	0	0	253,200	212,716
Exercised (in shares)	(3,012)	(2,463)	(18,977)	(14,367)
Forfeited (in shares)	(22,873)	(6,514)	(42,034)	(29,495)
Expired (in shares)	0	0	(144,422)	(139,794)
Outstanding and exercisable, end of period (in shares)	389,414	361,719	389,414	361,719

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Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
CARRYING VALUE
Derivative [Line Items]
Notes and bonds payable	$ 1,614.5	$ 1,602.8
FAIR VALUE
Derivative [Line Items]
Notes and bonds payable	$ 1,615.6	$ 1,645.4