Acquisitions, Dispositions and Mortgage Repayments (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of acquisitions

The following table details the Company's acquisitions for the year ended December 31, 2021:

Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE 2		MORTGAGES ASSUMED 3		CASH CONSIDERATION 4		REAL ESTATE 2		OTHER 5		SQUARE FOOTAGE unaudited
San Diego, CA 6	MOB	1/7/21	$	17,150	$	—	$	17,182	$	17,182	$	—	22,461
Dallas, TX 8	MOB	2/1/21	22,515		—		22,299		22,641		(342)		121,709
Atlanta, GA 8	MOB	2/17/21	9,800		—		10,027		10,073		(46)		44,567
Washington, D.C.	MOB	3/3/21	12,750		—		12,709		12,658		51		26,496
Houston, TX	MOB	5/14/21	13,500		—		12,986		13,379		(393)		45,393
San Diego, CA 6,7	MOB	5/28/21	102,650		—		103,984		104,629		(645)		160,394
Greensboro, NC	MOB	6/28/21	9,390		—		9,475		10,047		(572)		25,168
Baltimore, MD	MOB	6/29/21	14,600		—		14,357		14,437		(80)		33,316
Denver, CO 9	MOB	7/16/21	70,426		—		69,151		65,100		4,051		259,555
Greensboro, NC 6	MOB	7/19/21	6,400		—		6,374		6,514		(140)		18,119
Colorado Springs, CO	MOB	7/27/21	33,400		—		32,738		33,241		(503)		69,526
Birmingham, AL	MOB	8/19/21	9,250		—		9,355		9,388		(33)		29,942
Raleigh, NC	MOB	9/20/21	5,780		—		5,821		5,810		11		18,280
Denver, CO	MOB	9/22/21	20,250		—		19,630		19,405		225		83,604
Raleigh, NC	MOB	9/30/21	10,000		—		9,921		9,874		47		29,178
Denver, CO	MOB	11/15/21	7,700		—		7,383		7,431		(48)		18,599
Denver, CO	MOB	11/18/21	22,400		—		22,343		22,422		(79)		30,185
Columbus, OH 10	MOB	12/1/21	16,275		—		15,970		7,365		8,605		71,930
Nashville, TN	MOB	12/2/21	11,300		—		11,245		11,263		(18)		34,908
Colorado Springs, CO	MOB	12/20/21	10,575		—		10,541		11,009		(468)		44,166
Columbus, OH 8	MOB	12/28/21	9,525		—		9,521		9,601		(80)		28,962
Los Angeles, CA	MOB	12/28/21	20,500		(11,000)		9,396		20,316		80		56,762
Nashville, TN 11	MOB	12/29/21	19,775		—		19,833		19,982		(149)		85,590
Austin, TX	MOB	12/29/21	20,500		—		20,696		20,741		(45)		62,548
Atlanta, GA	MOB	12/30/21	4,900		—		4,772		4,419		353		11,840
Nashville, TN 12	MOB	12/30/21	54,000		—		53,923		54,072		(149)		74,489
Nashville, TN 12	MOB	12/30/21	20,500		—		19,833		19,825		8		32,454
			$	575,811	$	(11,000)	$	561,465	$	562,824	$	9,641	1,540,141

1MOB = medical office building.

2Includes investments in financing receivables and an $8.9 million right-of-use asset related to the Columbus, Ohio transaction.

3The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.8 million in aggregate recorded by the Company upon acquisition (included in Other).

4Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

5Includes other assets acquired, liabilities assumed, intangibles, and fair value mortgage adjustments recognized at acquisition.

6Represents a single-tenant property.

7The Company acquired a single-tenant net lease property in San Diego, CA in a sale-leaseback transaction which was accounted for as a financing arrangement as required under ASC 842, Leases.

8Includes two properties.

9Includes three properties.

10This sale-leaseback transaction was a multi-tenant lease property. A portion of the transaction totaling $7.4 million was accounted for as a financing receivable and the remaining $8.9 million was accounted for as an imputed lease arrangement. See Note 1 to the Consolidated Financial Statements accompanying this report for more information.

11Includes purchase of an adjoining 2.7 acre land parcel that will be held for development.

12This sale-leaseback transaction was a multi-tenant lease property which was accounted for as a financing arrangement as required under ASC 842, Leases.

The following table details the Company's acquisitions for the year ended December 31, 2020:

Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		MORTGAGES ASSUMED 2		CASH CONSIDERATION 3		REAL ESTATE		OTHER 4		SQUARE FOOTAGE unaudited
Los Angeles, CA	MOB	1/3/20	$	42,000	$	(19,300)	$	22,800	$	42,400	$	(300)	86,986
Atlanta, GA	MOB	2/13/20	12,000		—		11,800		12,100		(300)		64,624
Raleigh, NC	MOB	2/25/20	6,300		—		6,500		6,500		—		15,964
Colorado Springs, CO	MOB	3/9/20	8,200		—		8,300		8,600		(300)		34,210
Denver, CO 5	MOB	3/13/20	33,500		—		33,200		34,000		(800)		136,994
San Diego, CA	MOB	7/1/20	16,700		—		16,700		16,900		(200)		46,083
Los Angeles, CA	MOB	7/17/20	35,000		—		37,700		37,700		—		49,785
Seattle, WA 6	MOB	7/23/20	11,000		—		10,900		11,300		(400)		21,309
Atlanta, GA	MOB	7/31/20	20,500		—		21,600		21,300		300		48,145
Houston, TX	MOB	9/24/20	11,000		—		10,900		11,000		(100)		40,235
Los Angeles, CA	MOB	9/28/20	14,000		—		14,000		13,900		100		24,252
Colorado Springs, CO	MOB	10/7/20	8,900		—		8,900		9,000		(100)		36,720
Greensboro, NC 5	MOB	11/9/20	45,100		—		45,400		44,900		500		149,400
Memphis, TN	MOB	11/9/20	26,300		—		26,500		26,200		300		135,270
Memphis, TN 7	MOB	11/18/20	7,000		—		7,100		6,100		1,000		40,192
Nashville, TN	MOB	12/1/20	14,000		—		13,900		13,900		—		38,736
Greensboro, NC	MOB	12/17/20	10,500		—		10,800		10,700		100		27,599
San Diego, CA	MOB	12/22/20	37,400		(16,500)		21,400		38,500		(600)		45,157
Atlanta, GA 8	MOB	12/29/20	50,000		—		50,400		50,600		(200)		125,404
Greensboro, NC 9	MOB	12/30/20	11,600		—		11,300		11,300		—		35,373
			$	421,000	$	(35,800)	$	390,100	$	426,900	$	(1,000)	1,202,438
Land Acquisition 10		1/14/20	1,600		—		1,700		1,700		—		—
Land Acquisition 11		9/4/20	1,000		—		1,100		1,100		—		—
Land Acquisition 12		10/22/20	2,500		—		2,600		2,600		—		—
			$	426,100	$	(35,800)	$	395,500	$	432,300	$	(1,000)	1,202,438

1MOB = medical office building.

2The mortgages assumed in the acquisitions do not reflect the fair value adjustments totaling $0.7 million in aggregate recorded by the Company upon acquisition (included in Other).

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

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

5Includes three properties.

6Represents a single-tenant property.

7The Company assumed a prepaid ground lease totaling $0.4 million and recorded a below-market lease intangible totaling $0.8 million in connection with this acquisition that is classified as an operating lease that is included in Other.

8Includes two properties.

9The Company assumed a ground lease and recorded a below-market lease intangible totaling $0.2 million in connection with this acquisition that is classified as an operating lease. The present value of future lease payments totaling $0.6 million was recorded on the Company's Consolidated Balance Sheets under the caption Operating lease liabilities.

10The Company acquired land parcels under four existing buildings (previously ground leased with the hospital system).

11The Company acquired a land parcel under an existing building (previously ground leased). The building and land were disposed on September 30, 2020.

12The Company acquired a land parcel adjacent to an existing building, and the land parcel will be held for development.

Schedule of assets acquired and liabilities assumed

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2021 as of the acquisition date:

	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	275.1	18.0 - 44.0
Investment in financing receivables, net	185.9		0.5 - 34.0
Financing lease right of use assets 1	8.9		15.0 - 34.0
Land	34.1		—
Land Improvements	8.9		6.0 - 16.0
Intangibles
At-market lease intangibles	58.8		2.6 - 16.6
Above-market lease intangibles (lessor)	3.4		1.9 - 8.1
Below-market lease intangibles (lessor)	(1.4)		3.1 - 21.8
Above-market lease intangibles (lessee)	(0.3)		36.7 - 64.5
Below-market lease intangibles (lessee)	4.7		45.4
Mortgage notes payable assumed, including fair value adjustments	(11.8)
Other assets acquired	0.8
Accounts payable, accrued liabilities and other liabilities assumed	(5.6)
Total cash paid	$	561.5

1The Company acquired a building in Columbus, Ohio in a sale lease back transaction totaling $16.3 million, in which $8.9 million was recorded as an imputed lease arrangement and the remaining $7.4 million was recorded as an investment in financing receivables.

The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed in the real estate acquisitions for 2020 as of the acquisition date:

	ESTIMATED FAIR VALUE in millions		ESTIMATED USEFUL LIFE in years
Building	$	292.9	19.0 - 43.0
Land	74.4		—
Land Improvements	11.6		6.0 - 14.0
Intangibles
At-market lease intangibles	53.4		3.2 - 12.0
Above-market lease intangibles (lessor)	2.0		1.7 - 11.0
Below-market lease intangibles (lessor)	(2.2)		2.3 - 9.9
Below-market lease intangibles (lessee)	1.0		55
Mortgage notes payable assumed, including fair value adjustments	(36.5)
Other assets acquired	1.8
Accounts payable, accrued liabilities and other liabilities assumed	(2.9)
Total cash paid	$	395.5

Schedule of Joint Venture Transactions

2021 Acquisitions

The following table details the TIAA Joint Venture acquisitions for the year ended December 31, 2021:

Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Denver, CO	MOB	3/30/21	$	14,375	$	14,056	$	14,550	$	(494)	59,359
Colorado Springs, CO	MOB	4/1/21	7,200		7,288		7,347		(59)		27,510
Los Angeles, CA	MOB	4/8/21	31,335		30,179		30,642		(463)		57,573
San Antonio, TX	MOB	4/30/21	13,600		13,412		13,656		(244)		45,000
Los Angeles, CA	MOB	5/10/21	24,600		24,259		24,147		112		73,078
Colorado Springs, CO 4	MOB	7/27/21	9,133		9,137		9,135		2		23,956
Denver, CO	MOB	10/21/21	23,000		22,638		23,021		(383)		57,257
San Antonio, TX 5	MOB	12/10/21	42,300		41,892		42,190		(298)		117,597
San Antonio, TX	MOB	12/29/21	6,094		6,218		6,308		(90)		22,381
San Antonio, TX	MOB	12/29/21	8,850		8,915		8,866		49		30,542
			$	180,487	$	177,994	$	179,862	$	(1,868)	514,253

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

4Includes purchase of an adjoining 3.0 acre land parcel.

5Includes three properties.

The following table provides details of the TIAA Joint Venture transactions during 2020:

Dollars in thousands	TYPE 1	DATE ACQUIRED	PURCHASE PRICE		CASH CONSIDERATION 2		REAL ESTATE		OTHER 3		SQUARE FOOTAGE unaudited
Minneapolis, MN	MOB	11/12/20	$	16,600	$	14,200	$	13,800	$	400	92,139
Minneapolis, MN	MOB	12/7/20	15,500		15,400		15,500		(100)		48,594
Los Angeles, CA	MOB	12/8/20	80,600		80,500		79,200		1,300		135,904
Los Angeles, CA	MOB	12/29/20	13,200		13,200		13,100		100		48,759
			$	125,900	$	123,300	$	121,600	$	1,700	325,396

1MOB = medical office building.

2Cash consideration excludes prorations of revenue and expense due to/from seller at the time of the acquisition.

3Includes other assets acquired, liabilities assumed, and intangibles recognized at acquisition.

Schedule of equity method investments

The Company's investment in and loss recognized for the years ended December 31, 2021 and 2020 related to its joint ventures accounted for under the equity method are shown in the table below:

	DECEMBER 31,
Dollars in millions	2021		2020
Net LLC investments, beginning of period	$	73.1	$	8.1
New investments during the period	89.6		65.7
Equity loss recognized during the period	(0.8)		(0.5)
Owner distributions	—		(0.2)
Net LLC investments, end of period	$	161.9	$	73.1

Schedule of dispositions

The following table details the Company's dispositions for the year ended December 31, 2021:

Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Los Angeles, CA 3	MOB	3/11/21	$	26,000	$	(555)	$	25,445	$	6,046	$	509	$	18,890	73,906
Atlanta, GA	MOB	4/12/21	8,050		(272)		7,778		5,675		151		1,952		19,732
Richmond, VA	MOB	5/18/21	52,000		(314)		51,686		29,414		3,270		19,002		142,856
Gadsden, AL 4	MOB	5/19/21	5,500		(280)		5,220		5,914		175		(869)		120,192
Dallas, TX 5	MOB	7/9/21	23,000		(1,117)		21,883		18,733		1,966		1,184		190,160
Chicago, IL	MOB	10/28/21	13,300		(388)		12,912		23,213		706		(11,007)		95,436
Des Moines, IA 6	MOB	12/8/21	47,000		(901)		46,099		32,312		1,037		12,750		132,617
Aberdeen, SD	MOB	12/22/21	12,750		(299)		12,451		10,337		—		2,114		58,285
Dallas, TX	MOB	12/23/21	800		(103)		697		712		167		(182)		13,818
			$	188,400	$	(4,229)	$	184,171	$	132,356	$	7,981	$	43,834	847,002

1MOB = medical office building

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

3Includes two properties sold to a single purchaser in two transactions which closed on March 5 and March 11, 2021.

4Includes three properties.

5Includes four properties and a land parcel sold under a single purchase agreement.

6Includes three properties and two land parcels under a single purchase agreement.

The following table details the Company's dispositions for the year ended December 31, 2020:

Dollars in thousands	TYPE 1	DATE DISPOSED	SALES PRICE		CLOSING ADJUSTMENTS		NET PROCEEDS		NET REAL ESTATE INVESTMENT		OTHER including receivables 2		GAIN/ (IMPAIRMENT)		SQUARE FOOTAGE unaudited
Springfield, MO 3	SF	7/30/20	$	138,000	$	—	$	138,000	$	92,400	$	3,900	$	41,700	186,000
Oklahoma City, OK 3	MOB	7/30/20	106,500		—		106,500		76,800		3,100		26,600		200,000
Miami, FL	MOB	9/30/20	5,000		(200)		4,800		2,600		100		2,100		26,000
			$	249,500	$	(200)	$	249,300	$	171,800	$	7,100	$	70,400	412,000

1MOB = medical office building; SF = surgical facility

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

3In the second quarter of 2020, the Company entered into agreements to sell two single-tenant net leased properties, resulting in a lease modification and classification change from operating to sales-type.